Full text of Federal Reserve Bulletin : July 1981

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V o l u m e 67 □ N u m b e r 7 □ J u l y 1981

FEDERAL RESERVE

BULLETIN
Board of Governors of the Federal Reserve System
Washington, D.C.

P u b l ic a t io n s C o m m it t e e

Joseph R. Coyne, Chairman □ Stephen H. Axilrod □ Michael Bradfield
John M. Denkler □ Janet O. Hart □ James L. Kichline □ Edwin M. Truman
Naomi P. Salus, Coordinator
^

_

The F ederal R eserve B u ll et in is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. The artwork is provided by the Graphic Communications Section under the
direction of Peter G. Thomas. Editorial support is furnished by the Economic Editing Unit headed by Mendelle T. Berenson.




Table of Contents
529 T h e C o n s u m e r A d v i s o r y C o u n c i l :
Th e F i r s t F i v e Ye a r s

The work of the Consumer Advisory Coun­
cil is reviewed on the eve of its fifth anni­
versary.
535 A n A p p r o a c h

to

R egulator

y

Sim p l if ic a t io n

The Board is simplifying all of its regula­
tions and has completed its revision of
Regulation Z (Truth in Lending).
539 R e c e n t R e v i s i o n s
in th e

M

oney

S tock

The Board has devised an econometric pro­
cedure for preadjusting some components
of the money stock, revised the benchmark
for the monetary aggregates, and construct­
ed a measure of Ml-B that abstracts from
shifts to negotiable order of withdrawal
accounts in 1981.

market funds when such shares serve as
transaction balances and to enforce a clear­
er distinction between transaction balances
and other liquid savings, before the Sub­
committee on Domestic Monetary Policy of
the House Committee on Banking, Finance
and Urban Affairs, June 25, 1981.
555 Lyle E. Gramley, Member, Board of Gov­
ernors, discusses some of the issues in­
volved in recent mergers within the finan­
cial services industry and says that
developments need to be monitored careful­
ly to ensure that such changes as recent
conglomerate mergers do not result in mo­
nopolies or monopoly power at some time
in the future, before the Subcommittee on
Monopolies and Commercial Law of the
House Committee on the Judiciary, July 8,
1981.
561 A n n o u n c e m e n t s
Revision of the monetary aggregates.

543 I n d u s t r i a l P r o d u c t i o n
Output declined about 0.1 percent in June.
545 S t a t e m e n t s

to

C ongress

Frederick H. Schultz, Vice Chairman,
Board of Governors, discusses the implica­
tions of Federal Reserve policy for the
agricultural sector and says that the farm
sector is not facing a significant problem
with respect to credit availability, before
the Subcommittee on Conservation, Credit,
and Rural Development of the House Com­
mittee on Agriculture, June 23, 1981.
548 Paul A. Volcker, Chairman, Board of Gov­
ernors, presents the Board’s views on the
role of money market funds in the nation’s
financial structure and recommends that the
Federal Reserve be authorized to impose
reserve requirements on shares of money



Amendments to Regulations D and Q to
permit the establishment of international
banking facilities in the United States (see
Legal Developments).
Proposed amendments to Regulation T con­
cerning margin requirements for trading of
options on government and government
agency debt issues; proposed amendment
to Regulation Y to include the issuance of
traveler’s checks in the list of nonbanking
activities permissible for bank holding com­
panies; proposed amendments to Regula­
tions G, T, and U concerning margin re­
quirements.
Changes in Board staff.
Meeting of Consumer Advisory Council.
Admission of seven state banks to member­
ship in the Federal Reserve System.

565 R e c o r d

o f P o l ic y A c t io n s o f th e
F e d e r a l O p e n M a r k e t C o m m it t e e

At its meeting on May 18, 1981, the Com­
mittee decided to seek behavior of reserve
aggregates associated with growth of Ml-B
from April to June at an annual rate of 3
percent or lower, after allowance for the
impact of flows into negotiable order of
withdrawal (NOW) accounts, and growth in
M2 at an annual rate of about 6 percent. A
shortfall in growth of Ml-B from the twomonth rate of 3 percent would be accept­
able, in light of the rapid growth in April
and the objective adopted by the Commit­
tee on March 31 for growth from March to
June at an annual rate of 5x percent or
/i
somewhat less. The members recognized
that shifts into NOW accounts would con­
tinue to distort measured growth in Ml-B to
an unpredictable extent and that operation­
al paths would have to be developed in the
light of evaluation of those distortions. The
Chairman might call for Committee consul­
tation if it appeared to the Manager for
Domestic Operations that pursuit of the
monetary objectives and related reserve
paths during the period before the next
meeting was likely to be associated with a
federal funds rate persistently outside a
range of 16 to 22 percent.




571 L e g a l D e v e l o p m e n t s
Amendments to Regulations D, Q, and T;
various bank holding company and bank
merger orders; and pending cases.
Al

Fin a n c ia l

A3
A44
A52
A68

Domestic Financial Statistics
Domestic Nonfinancial Statistics
International Statistics
Special Tables

and

B

u s in e s s

S t a t is t ic s

A67 G u i d e

t o Ta b u l a r P r e s e n t a t i o n ,
S t a t is t ic a l R e l e a s e s , a n d S p e c ia l
Ta b l e s

A82 B o a r d

of

Governors

and

S taff

A84 F e d e r a l O p e n M a r k e t C o m m i t t e e
and

S ta ff; A d v is o r y C o u n c il s

A85 F e d e r a l R e s e r v e B a n k s ,
Bran ch es,

and

O f f ic e s

A86 F e d e r a l R e s e r v e B o a r d
P

u b l ic a t io n s

A88 I n d e x
A90 M a p

to

of

S t a t i s t i c a l Ta b l e s

Federal R eserve S

ystem

The Consumer Advisory Council
The First Five Years
This article was prepared by Marcia A. Hakala,
former vice chairman o f the Board’s Consumer
Advisory Council, with the assistance o f Ann
Marie Bray, Kay Oliver, and Dolores S. Smith o f
the Board staff.
In its role as the nation’s central banker the
Board of Governors of the Federal Reserve
System has a significant impact on the daily lives
of American consumers. The Board’s decisions
on monetary policy can exert a force on interest
rates, on the availability of credit, and on the rate
of inflation.
Over the past 13 years, the Board has become
involved in yet other ways in consumer affairs.
With the passage by the Congress in 1968 of the
first federal legislation for the protection of indi­
vidual consumer-borrowers, the Board began
under statutory fiat to assume a major role in the
writing and enforcement of rules governing the
rights and responsibilities of consumers in their
dealings with the financial and credit industry.
With each new mandate—first truth in lending
disclosures, then credit card rules, equal credit
opportunity, fair credit billing rights, consumer
leasing, and so on—the Board’s involvement in
consumer matters has deepened. In a parallel
development the organized participation of pri­
vate citizens as advisers to the Board in the
exercise of these functions has expanded—first
under the aegis of the Advisory Committee on
Truth in Lending, and currently through the
Board’s Consumer Advisory Council. The ap­
proach of the fifth anniversary of the Consumer
Advisory Council provides an appropriate occa­
sion for a status report.

O r ig in

o f the

C o u n c il

In 1968, the Congress established, as part of the
truth in lending legislation, an advisory commit­



tee to assist the Board in drafting the implement­
ing Regulation Z. As the Board’s responsibilities
in consumer regulations expanded, it seemed
only natural to supplant the committee with a
group that had a broader focus. At the suggestion
of the Board, the Congress added to the Equal
Credit Opportunity Act Amendments of 1976 a
provision creating the Consumer Advisory
Council. According to that provision, the council
was to advise and consult with the Board in the
exercise of its functions under the Consumer
Credit Protection Act and in other consumerrelated matters that the Board might place before
the membership.
The rationale behind the formation of these
advisory bodies was to open a channel through
which the Federal Reserve Board could receive,
from specialists in the field, advice and informa­
tion to help it carry out its consumer-related
responsibilities. The council could also act as a
public sounding board to assist the Federal Re­
serve in uncovering implications of particular
proposals.

M e m b e r s h ip

and

Or g a n iz a t io n

The law that created the Consumer Advisory
Council instructed the Federal Reserve Board to
“ seek to achieve a fair representation of the
interests of creditors and consumers.” Beyond
that, it left the Board wide flexibility regarding
the council’s membership and organization. The
rules of organization and procedure that the
Board subsequently adopted with respect to the
council’s operations made these points:
• The council would consist of no more than
thirty members.
• Members would serve for staggered threeyear terms.
• The council would have a chairman, a vice

530

Federal Reserve Bulletin □ July 1981

chairman, and a secretary, the last selected from
the Board’s staff.
• Meetings would be open to the public.
• Members of the public would have the oppor­
tunity to submit written comments on the topics
to be discussed at council meetings.
Three individuals have headed the council thus
far. Leonor K. Sullivan, a member of the Con­
gress for twenty-four years, was the first chair­
man. For twelve years, from 1963 to 1975, Mrs.
Sullivan was Chairman of the Subcommittee on
Consumer Affairs of the House Banking and
Currency Committee. She was one of the princi­
pal authors of the 1968 Consumer Credit Protec­
tion Act, and in 1970 she sponsored the Fair
Credit Reporting Act. In 1974, she proposed
legislation to prohibit discrimination in the exten­
sion of credit based on age, color, race, religion,
sex, or marital status. The Equal Credit Opportu­
nity Act grew out of her proposal.
The second chairman was William D. Warren,
a well-known scholar and author in the field of
consumer and commercial law, and dean of the
School of Law at the University of California at
Los Angeles. He served as a consultant on
debtor-creditor and consumer law to the Nation­
al Commission on Consumer Finance, and was
reporter-draftsman of the Uniform Consumer
Credit Code between 1964 and 1974.
Since January 1981, the chairman has been
Ralph J. Rohner, professor of law at the Colum­
bus School of Law at the Catholic University of
America. Professor Rohner served as counsel to
the Subcommittee on Consumer Affairs of the
Senate Committee on Banking, Housing, and
Urban Affairs, and has written extensively on
federal consumer credit legislation.
The mission of the Consumer Advisory Coun­
cil was to lend the Board its expertise with
respect to the development and implementation
of consumer-related regulations and programs,
striving for equity, effectiveness, and minimum
burden. In keeping with that mission the council
has been characterized since its inception by a
broad range of backgrounds and locales. (See the
table and the map.) This diversity has been
useful. Among creditors, for example, the needs
and problems of different types and sizes of
organizations can diverge, even to the point of
conflict. The clientele of a creditor, its asset and



Members of the Consumer Advisory Council, by
professional affiliation, 1976-81
Type of representative

T ......

Number

Creditor representatives
Commercial banks............................................... *........ j

6

Savings and loan associations.......................................
Mutual savings banks....................................................
Credit unions.................................................................
Consumer finance companies........................................
Mortgage banking companies........................................

2
1
2
2
1

Automobile dealers........................................................

2

Credit bureaus...............................................................
Bank credit-card systems..............................................

■

2
1

Consumer representatives
Organized labor.................................................... .........
Government agencies for civil rights and consumer
protection...............................................................
Credit counseling services.............................................
Legal aid societies.........................................................
Consumer education.....................................................
Consumer and community interest groups.................
Academicians and others.........................................

3
3

3
3

2
1
4
1
2
2

9
4
7

liability structure, its size, and the nature of its
assets and revenues can go a long way to deter­
mining its concerns with respect to consumer
regulations. Small organizations often point out
that some of the provisions of Regulation E
(Electronic Fund Transfers), Regulation Z (Truth
in Lending), and Regulation BB (Community
Reinvestment), and the federal programs to en­
force such regulations, can be a tremendous
burden and can place them at a competitive
disadvantage because they lack the legal staffs
and the economic resources of larger organiza­
tions. Recognizing these differences, the Board
has named individuals to the council from di­
verse institutions.
Consumer representatives have had even more
heterogeneous backgrounds. Some of them have
been founders and long-time leaders of the con­
sumer movement. Representatives of state and
local consumer protection and civil rights offices
have offered expertise from their special vantage
points. Consumer education specialists have
been a valuable resource because consumer edu­
cation is usually at least part of the solution for
many consumer problems raised at council ses­
sions. Educators and attorneys on the council
have included articulate, nationally recognized
spokespersons for consumer rights. The knowl-

The Consumer A dvisory Council: The First Five Years

531

Geographic distribution of CAC membership, 1976-81

Washington
Maine
Montana

North Dakota

Minnesota
Wisconsin.

South Dakota
Michigan

Wyoming
Nebraska

Nevada

Illinois i Indiana!

Ohio
| Delaware

Colorado
Virginia

Kansas

Maryland

'entucl

California

District of
Columbia

North Carol
Oklahoma

Arizona
New Mexico

Alabama

Louisiana.

Shaded areas indicate home states of Consumer Advisory Council members; darker shading shows first council.

edge and efforts of other members with lowincome clients have enabled them to make their
own special contributions.
Academicians have constituted a third catego­
ry of council members. In appointing law profes­
sors, economists, and other academicians, the
Board has drawn on individuals who cannot be
neatly categorized as consumer or creditor repre­
sentatives, but who can provide a neutral force in
the council’s deliberations and a special perspec­
tive on complicated consumer finance issues.
To say that most council members can be
characterized by their affiliations as creditor rep­
resentatives or consumer representatives does
not mean that the positions they take during the
council’s discussions can be characterized that
way. One member of the Board commented that
in listening to the council’s discussions he was
often unable to tell which members represented
consumers and which represented creditors.



Procedures

and

O p e r a t io n s

Through the nearly five years of its existence,
the Consumer Advisory Council has explored
ways of enhancing its value to the Board and of
making service on the council more meaningful
to its members. Experience with the many and
often complex issues in the regulation of con­
sumer credit and financial services has led to
refined procedures and streamlined operations.
In October 1977, the council established a task
force on procedures. Working with the Board’s
Committee on Consumer Affairs, it recommend­
ed, among other things, that the council have
fuller discussions of fewer topics at each meet­
ing. With Board concurrence, the task force also
urged that council members participate more
directly in selecting agenda topics. Consequent­
ly, a formal procedure known as the Delphi
technique was adopted. This balloting technique

532

Federal Reserve Bulletin □ July 1981

permits a systematic compilation of opinions for
group decisionmaking that is well suited to the
needs of the geographically dispersed members.
Council members are asked to suggest topics, all
of which are listed and voted upon in order of
preference. Items receiving the highest totals are
placed on the agenda. Other topics may be added
by the council’s chairman and vice chairman and
by Board members.
Task forces and committees have proven use­
ful, time-saving mechanisms for fuller council
involvement in complex issues and Board activi­
ties. A small group of council members can take
a concentrated look at a specific issue or play a
specialized role in gathering information about
an issue. In addition, council members expert in
a particular area can be tapped to serve on or to
head a group looking into that area. Such groups
report on their activities and bring their recom­
mendations to the full council.
Currently, the council has two standing com­
mittees. The Economic Impact Analysis Com­
mittee was established in June 1979 to explore
the role that the council could play in the costbenefit analysis of consumer financial-protection
regulations. So far the committee has considered
whether better (cheaper, clearer, more timely)
alternatives exist to the disclosure now given
consumers under the Fair Credit Billing Act, and
whether charges for error resolution on alleged
errors in electronic fund transfers have a “ chill­
ing” effect or other influence on the behavior of
consumers.
The Legislation Committee was created in
October 1979 to advise the council on proposed
legislation. It is currently identifying issues con­
cerning competition and structure in financial
markets (impact of money market mutual funds,
interstate banking activities, and so on), usury
ceilings and the costs of credit to consumers, and
the multiple sources of regulatory requirements.
This year an ad hoc committee was named by
the chairman to develop a consumer education
item for discussion at a future council meeting.
This group has the mandate of identifying as­
pects of consumer education that it feels the
council should address.
In the early days, some members expressed
frustration because the council did not take votes
on issues after its discussions and consequently



did not appear to be complying with its mandate
to advise the Board. Others believed that no
useful purpose would be served by voting be­
cause members would feel obligated to cast
ballots along consumer-creditor “party lines;”
inasmuch as the council was balanced, votes by
creditor representatives would cancel out those
cast by consumer representatives. Voting, some
thought, might even inhibit members in express­
ing their views because meetings are open to the
public.
As the council gained experience, an objective
problem-solving system began to develop. Mem­
bers not only were freely expressing their own
positions on issues, but also were understanding
the concerns of the “opposing” side and engag­
ing in a real dialogue. Discussions sometimes
became heated; but on some occasions, when the
council had at last reached a consensus, mem­
bers on both sides had been persuaded to accept
a middle ground. The council had thus become a
forum for informed discussions about issues of
public interest.

A

genda

Item s

By law, the council advises the Board with
respect to the Board’s responsibilities under the
Consumer Credit Protection Act and other con­
sumer-related matters on which the Board seeks
advice. In addition, through use of the Delphi
ballot process the council has voted to discuss a
wide variety of other topics: consumer bankrupt­
cy, state usury ceilings, negotiable order of with­
drawal accounts, and interstate banking, to name
a few.
Over the past five years the council has devot­
ed a substantial portion of its time to various
aspects of three major consumer regulations:
Regulation Z, Regulation E, and Regulation B
(Equal Credit Opportunity). In particular, it has
grappled often with proposals to amend the truth
in lending rules, with the development of en­
forcement policies, and with the implications of
credit-scoring practices for consumers and for
the industry.
Because the council was already in existence
in 1978, when the Electronic Fund Transfer Act
was passed, it was able to advise the Board about

The Consumer Advisory Council: The First Five Years

the implementing regulation from the beginning.
More recently, the council has considered ways
to reconcile the conflicts between certain provi­
sions of that regulation and the corresponding
provisions of Regulation Z. The council recently
recommended that the Board not attempt to
integrate those provisions until the Permanent
Editorial Board for the Uniform Commercial
Code completed its efforts to make appropriate
changes in the uniform state laws, changes that
the council thought ought to precede any revi­
sion in Federal Reserve regulations. The Federal
Reserve Board has followed the council’s sug­
gestion.

IMPACT

Assessing the impact of group deliberations on
the decisionmaking process is extremely diffi­
cult. But the work of one council task force
affords a glimpse of ways in which the council
aids the Board.
Even during the formative stages of the coun­
cil, members expressed concern to the Board
that consumers might not be fully benefiting from
protections afforded them because they lacked
information regarding consumer credit legisla­
tion. To test this hypothesis the council estab­
lished a Consumer Education Task Force to do
some regional research. Members representing a
cross-section of states—California, Maryland,
Michigan, Nebraska, Iowa, Texas, and Virgin­
ia—surveyed educational systems in their areas
to explore these questions: Were consumer edu­
cation courses being taught? If so, to what extent
and to whom? Were they required or elective?
The task force also gathered examples of instruc­
tional materials.
The study confirmed the need for broader
dissemination of consumer information. After
further deliberation, the council urged the Board
to respond to a particular need—that of reaching
young people—through educating teachers about
consumer credit protections.
Participants in the first teacher workshop, held
in Washington in February 1979, found it particu­
larly helpful, and five more seminars have been
held with metropolitan Washington school dis­
tricts. Teacher workshops are now an ongoing



533

program at more than half of the Federal Reserve
Banks. In addition, council members have pro­
vided editorial help in preparation of the Board’s
educational pamphlets and have suggested wider
avenues of distribution for consumer materials.
Council input also appears to affect rules is­
sued by the Board. In some instances the issue
has been relatively simple. A good example is the
council’s consideration of a rule in truth in
lending that deals with customer reimbursement
for computational overcharges. The Board had
asked for the council’s views on the amount
below which a creditor should not be required to
repay the consumer. The council proposed a
one-dollar figure, which the Board later set.
Other times the issues have been complex,
with far-reaching implications for consumers. In
one such case, the Board reconsidered a rule in
Regulation Z, in part because of a request from
council members. The rule defined the consum­
er’s right to rescind a credit transaction if the
creditor was taking a security interest in the
consumer’s home. This right was intended to
give consumers an opportunity to reconsider the
transaction because a default could result in the
loss of the home.
The Board had published a proposal for an
amendment to the rule generally limiting the cir­
cumstances in which the consumer could rescind
a transaction under an open-end credit plan. In
due course, the Board adopted the amended rule.
Protests followed—from consumer groups and
also from council members, who wanted to have
more direct input into the decision.
At its next scheduled meeting, the council
expressed grave concern about the possible con­
sequences of the rule for consumers and urged
the Board to reverse its position. Soon after, the
Board reopened the rulemaking proceedings and
asked for public comment on whether it should
suspend, repeal, or modify the rescission amend­
ment.
The Board ultimately revoked the amendment,
noting its consideration of “the concern ex­
pressed by . . . the Board’s Consumer Advisory
Council [and others] . . . that consumers might
be led unawares into more debt than they could
afford and might as a result lose their homes—a
consequence that the right of rescission is intend­
ed to help prevent.”

534

Federal Reserve Bulletin □ July 1981

The council has also been valuable to the
Board for the “grass roots” information that
members have been able to offer from around the
country. Although the Board solicits public com­
ment on proposed regulations or amendments to
existing regulations in an effort to determine the
impact they will have on consumers, comments
by council members have a first-hand freshness
that is sometimes lacking in the written com­
ments from the public. The varied experiences
and contacts of council members also serve the
Board in uncovering consumer concerns that its
formal procedures might miss.
Since all consumers are not alike (what bene­
fits one group may hurt another), the Board must
weigh not only the anticipated effect of its deci­
sions on consumers as a group against the antici­
pated effect on other segments of the society, but
also the sometimes conflicting effects on con­




sumers themselves. In these kinds of delibera­
tions, the council has been of special value to the
Board; thus its impact cannot be measured solely
by the instances in which its positions have
prevailed in final Board actions.

In C o n c l u s io n

In the nearly five years since the council began, a
solid working relationship, ensuring that council
input is considered by the Board in making
consumer-related decisions, has been estab­
lished between the council and the Board and its
staff. At the same time, those who have served
on the council have derived from their experi­
ence a deeper understanding of the infinite com­
plexity of the Board’s regulatory functions. □

535

An Approach to Regulatory Simplification
This article was prepared by Jesse B. Filkins, Jr.,
o f the Board's Division o f Consumer and Com­
munity Affairs.
Over the recent past, industry practices at all
levels have been permeated by government regu­
lation. The last decade has been a particularly
active period of regulation in the consumer credit
industry. Federal statutes now require creditors
to disclose a great deal of information to consum­
ers about the credit being offered while, at the
same time, restricting lenders in their practices.
Many of these statutes have been implemented
by the Board of Governors of the Federal Re­
serve System.1
Lately, a consensus has emerged that the
proliferation of government regulation exacts a
toll from industry that may be too high, particu­
larly for small businesses; and the mood of the
country has begun to swing in favor of less
regulation. The Congress has expressed its con­
cern for legislative and regulatory reform
through passage of the Truth in Lending Simplifi­
cation and Reform Act, the Financial Regulation
Simplification Act of 1980, and the Regulatory
Flexibility Act.2 In light of these laws how can a
regulatory agency charged with implementing
1. The Board’s major responsibilities in the consumer
credit area are implementation of the Truth in Lending Act
(Regulation Z), beginning in 1968; the Equal Credit Opportu­
nity Act (Regulation B), in 1976; and the Electronic Fund
Transfer Act (Regulation E), in 1978. It also has rulewriting
authority under the Home Mortgage Disclosure Act (Regula­
tion C), 1975; the Magnuson-Moss Warranty-Federal Trade
Commission Improvement Act (Regulation AA), 1975; and
the Community Reinvestment Act (Regulation BB), 1977.
2. The Truth in Lending Simplification and Reform Act is
Title VI of the Depository Institutions Deregulation and
Monetary Control Act of 1980, Public Law 96-221, 94 Stat.
168, amending 15 U.S.C. 1601 et seq. (1968). The Financial
Regulation Simplification Act is Title VIII of the Depository
Institutions Deregulation and Monetary Control Act of 1980,
Public Law 96-221, 94 Stat. 191; it requires federal financial
regulatory agencies to review their regulations to minimize
compliance costs, to avoid conflicts and duplication, and to
promote clarity and understanding. The Regulatory Flexibili


legislation further the cause of regulatory reform
while retaining the basic protections for consum­
ers mandated by the Congress? This article looks
at the Federal Reserve Board’s approach to
regulatory simplification in general and focuses
on the implementation of the Truth in Lending
Simplification and Reform Act.

R e g u l a t o r y Im p r o v e m e n t

Mindful of the burdens regulation imposes on
business and individuals, the Federal Reserve
Board in 1975 enlisted some of its former officers
to review its regulations and make recommenda­
tions for their improvement. In 1978, this review
was restructured as a full-scale Regulatory Im­
provement Project under the Office of the Secre­
tary and was charged with improving the Board’s
regulations and rulemaking procedures. The pro­
ject coordinates the efforts of Reserve Bank and
Board staff in the zero-based reviews of all of the
Board’s regulations and provides substantive
and editorial review of regulatory revisions and
amendments in compliance with the Financial
Regulation Simplification Act and the Regulatory
Flexibility Act.
In addition, the Board has established a Feder­
al Reserve Regulatory Service designed to sim­
plify the presentation of regulatory material and
broaden access to it. The service has published
all Board regulations, interpretations, and rulings
in a single two-volume reference set.
The Board has also expanded its rulemaking
procedures to encourage more and earlier public
involvement. Since January 1979, the rulemaking
procedures have provided for advance notice of
rulemaking; identification of areas in which the
ty Act is Public Law 96-354, 94 Stat. 1164 (1980), amending 5
U.S.C. 551 et seq. (1946); it provides that agencies must
consider the impact of their regulations on small businesses
and attempt to fit regulatory requirements to the scale of the
business.

536

Federal Reserve Bulletin □ July 1981

Board particularly wants comment; open confer­
ences or informal public hearings; and direct
solicitation of the views of interested persons or
groups, with emphasis on getting views from
diverse sources.

Tr u t h

in

L e n d in g

Truth in Lending offers an example of how the
Board has simplified one of its regulations.
The Depository Institutions Deregulation and
Monetary Control Act of 1980 required the
Board to conduct an extensive analysis and
reevaluation of several of its major regulations.
Title VI, the Truth in Lending Simplification and
Reform Act, called for extensive revision of the
lending rules embodied in Regulation Z.
Truth in Lending, like so much of the consum­
er protection legislation, started out as a re­
sponse to perceived abuses by creditors. The
Congress was concerned that creditors were not
providing enough information about credit, that
the terminology used in the industry was so
varied that consumers shopping for credit be­
came confused and thus were at a disadvantage,
and that ultimately free competition among lend­
ers was hindered. The Congress therefore re­
quired creditors to provide sufficient information
in uniform, simple terms so that consumers could
make an informed choice among sources of cred­
it. The bill that became the Truth in Lending Act
was designed to “insure a full disclosure of the
cost of credit,” “improve and strengthen the free
competition system,” and prevent “deception
and confusion in connection with disclosing the
actual cost of credit.” 3 To these ends it focused
on disclosure of certain information in easily
understood, common terms such as the “finance
charge” (the dollar amount of the cost of credit),
and it introduced the term “annual percentage
rate” as a uniform indicator of the cost of credit.
To fulfill its responsibility for implementing the
act, the Board in 1969 issued Regulation Z.
Over the next decade, legislation affecting
consumer credit grew both in volume and in
3.

See the remarks of Senator William Proxmire, Congres­
(daily edition), Jan. 31, 1967, pp. S-1202, 1203,

sional R ecord

1204.



complexity. Statutes were passed dealing with
nondiscrimination in consumer credit, disclo­
sures of residential mortgage lending, consumer
rights in the emerging electronic banking field,
and unfair and deceptive acts by banks. The
Truth in Lending Act was amended in 1970,
1974, and 1976 to include new provisions on
credit cards, resolution of billing errors, and
consumer leasing. The regulation grew from
about 32 pages to more than 76 pages containing
many complex, technical requirements.
While consumer protection was increasing, so
was the regulatory burden on the credit industry.
Forms became unwieldy and expensive to pro­
duce because of the number of disclosures re­
quired and the frequent changes in requirements.
Moreover, because of the technical provisions of
the act and the regulation and because of the
statutory penalties imposed for violations, credi­
tors requested more and more guidance. By
1980, the Board and its staff had issued more
than 1,500 interpretations and letters. Compli­
ance difficulties were compounded by decisions
in the more than 15,000 Truth in Lending civil
lawsuits filed in federal courts since 1969, many
of them based on technicalities.4

Simplification and R eform
In March 1980, the Congress, concerned about
the impact of this large and complex statutory
and regulatory scheme on consumers and on
creditors, particularly small businesses, passed
the Truth in Lending Simplification and Reform
Act. This act was designed to ease compliance
by eliminating ambiguities in the law, by simpli­
fying and reducing the number of disclosures
required, and by providing for model forms and
clauses that would assure compliance when they
were used properly by creditors.
Passage of the act, however, posed a formida­
ble question for the Board’s staff: how were they
to simplify a regulatory apparatus of the magni­
tude of Truth in Lending? The complexity of the
act and of the industry that it regulates precluded
4. Based on a compilation of data published in the Annual
Report o f the D irector o f the A dm inistrative Office o f the
United States Courts, from 1972 through 1980.

An Approach to Regulatory Simplification

a brief, simple regulation. Despite the attempt by
the Congress, the Truth in Lending Act was still
far from simple: the statute remained more than
15,000 words long. The variety of credit pro­
grams that the regulation addresses had expand­
ed so much that it was difficult to write an
uncomplicated regulation. And to maintain con­
sistency with past decisions, any revision of the
regulation would have to take into account the
relevant interpretations and letters.

G oals o f Sim plification
Although the Regulatory Improvement Project
has responsibility for coordinating the review
function for regulatory improvement, the task of
revising Regulation Z was assigned to the Divi­
sion of Consumer and Community Affairs, the
division responsible for drafting the Board’s con­
sumer regulations.
A first step was to establish goals for the
revision of Regulation Z that could serve as a
basis for regulatory efforts. One goal was to
reduce substantially the burden of compliance on
creditors. A second was to simplify the regula­
tory format by consolidating the interpretations
and letters into a single comprehensive docu­
ment. And a third was to make disclosures more
understandable for consumers. Some individuals
were concerned that consumers were having as
much difficulty in understanding Truth in Lend­
ing disclosures as they had in understanding
transactions without them; moreover, the origi­
nal goal of facilitating credit shopping was
thought to be thwarted by the complexity of the
required disclosures.
Another aspect was to adopt the often-stated
congressional objective of providing specific re­
lief for small businesses, when possible. Thus,
one goal was to recognize in the regulation that
the needs of small institutions, with simple credit
plans, are different from those of large institu­
tions with complex plans. The compliance efforts
of small businesses could also be facilitated by
simplifying the language, focusing on the most
important basic disclosures, and deemphasizing
the technical areas.
Finally, the staff adopted a goal of encouraging
improved and voluntary compliance, which



537

could be achieved through good-faith efforts.
Thus, creditors could provide earlier disclosures
to consumers and make shopping for credit
easier.

Principles A p p lied
A set of working principles was developed to
organize the project, set central themes, and
furnish specific guidance on how to reach simpli­
fication goals.
One working principle was that the regulation
contain precise, simple rules rather than ambigu­
ous language that required clarification by inter­
pretation. For example, the old regulation ap­
plied to a person who “in the ordinary course of
business regularly extends” consumer credit.
The revised regulation defines “regularly” to
mean the extending of credit more than twentyfive times per year (or five times per year for
loans secured by real estate).
Another principle was that the regulation em­
phasize the disclosures most relevant to credit
decisionmaking. Disclosure regulations have of­
ten been criticized on the ground of “information
overload,” when consumers are so inundated
with disclosures that they cannot properly ana­
lyze their statements. One way the regulation
controls the amount of information supplied to
consumers is by eliminating detailed disclosures
concerning consumer defaults. It also removes
the requirement for disclosing minor changes
made in outstanding contracts.
Because of the detailed requirements of the old
regulation, creditors’ disclosure forms were of­
ten complex and confusing and, far from helping
consumers, may have inhibited their understand­
ing of the credit terms. In the new regulation,
creditors were to be given increased flexibility in
making their disclosures. The hope was that an
easing of regulatory rigidity would allow credi­
tors to create clearer, more understandable
forms for the basic information. For instance, the
old regulation prescribed in detail an example of
the effects of a rate increase in a variable-rate
loan. The new regulation permits creditors to
design their own illustrations.
Applying these principles, the Board has pro­
duced a regulation that is 40 percent shorter than

538

Federal Reserve Bulletin □ July 1981

the old one, that is easier to read and understand,
and that affords creditors more freedom to tailor
the disclosure to their own credit plans. The
result should be more meaningful disclosures to
consumers and thus better informed credit shop­
ping, one of the primary goals of the original
Truth in Lending legislation.

A Sim plified Structure
Clarifying the language of the regulation and
reducing the complexity and volume of disclo­
sure were only part of the simplification process.
It was also decided that a simpler, better orga­
nized format would make Regulation Z easier to
use and thereby improve compliance. In the
past, users had been forced to peruse the regula­
tion, check the Board interpretations, look for
slip sheets, and sort through hundreds of official
and unofficial staff letters. To alleviate this prob­
lem the revised regulation groups together all
rules regarding credit-related programs. Provi­
sions related to consumer leasing, previously
found in several parts of the regulation, have
been removed from Regulation Z altogether and
consolidated into a new regulation, Regulation M
(Consumer Leasing). This change helps the users
of the leasing provisions while simplifying Regu­
lation Z because leasing and credit generally are
subject to separate provisions.
The staff also made the regulation easier to
follow by instituting a “ commentary” that inter­
prets the regulation. Previously, interpretations
were offered in individual official and unofficial
staff letters. Now the commentary permits all of
the interpretive material to be presented in a
single document, which will normally be updated
only once a year.5 Users need not constantly
5. The amended act contains a similar concept requiring
that any changes to the regulation, the amendments, or the




check several sources to determine whether they
are in compliance with the regulation. Creditors
who act in conformity with the commentary are
protected from civil liability.6
Inclusion of model forms and clauses was
another step toward making the regulation easier
to use. This idea had been high on the list of
Board recommendations made in congressional
hearings before passage of the simplification
amendments. In developing the forms, the Board
consulted suppliers of forms to the credit indus­
try. It also took account of “Plain English”
requirements in state laws. Use of the model
forms and clauses is optional; however, there is a
presumption of compliance when they are prop­
erly used.

A C o n tin u in g P r o c e s s
Although the revision of Regulation Z is now
complete, simplification remains an essential
part of the regulatory process. The Regulatory
Improvement Project has ongoing responsibility
to ensure that the Board’s regulations meet the
goals of the Financial Regulation Simplification
Act. During the past two years the staff of the
project has coordinated zero-based reviews and
cooperated with Reserve Bank and Board staff in
substantive revisions of a number of Board regu­
lations and is currently working on others, in­
cluding those on bank holding companies and
margin credit. Project members will continue to
explore better means of presenting regulatory
proposals to reduce paperwork.
□

interpretations be made only once a year. These changes
should be promulgated at least six months before the October
1 effective date.
6. 15 U.S.C. 1640(f) (1976); Ford Motor Credit Co. v.
Milhollin, 444 U.S. 555 (1980).

539

Recent Revisions in the Money Stock
Benchmark, Seasonal Adjustment, and Calculation of Shift-Adjusted Ml-B

Thomas D. Simpson, John R. Williams, and
other members o f the staff o f the Board's Divi­
sion o f Research and Statistics prepared this
article.
In May and June of this year the Federal Reserve
announced updated seasonal adjustment meth­
ods and benchmark revisions for the money
stock, as well as a procedure for calculating a
measure of Ml-B that abstracts from shifts to
negotiable order of withdrawal accounts autho­
rized in 1981. Whereas seasonal adjustment fac­
tors are updated regularly, recent revisions were
complicated by the growing importance of the
other checkable deposits component and by un­
usual patterns of deposit flows in 1980 during and
after the special credit restraint program.1
Benchmark revisions involved the conversion to
use of new reports of deposits collected by the
Federal Reserve under the Monetary Control
Act of 1980, as well as the usual adjustments
based on quarterly call report data; in addition,
traveler’s checks were added to Ml-A and the
broader aggregates.
This article briefly describes the benchmark
revisions and their effects on the pattern of
monetary growth. It also describes in general
terms the methodology for calculating the sea­
sonal factors, particularly the procedures used to
avoid distortions of seasonal factors resulting
from unusual deposit flows in the spring and
summer of 1980. Finally, it discusses the proce­
dure for constructing a measure of Ml-B that
abstracts from shifts to NOW accounts in 1981.2
1. Other checkable deposits consist of NOW (negotiable
order of withdrawal) and ATS (automatic transfer service)
accounts at commercial banks and thrift institutions, credit
union share draft accounts, and demand deposit accounts at
thrift institutions.
2. A more detailed description of the methods used in
these revisions has been prepared and is available on request
from the Board of Governors of the Federal Reserve System,
Division of Research and Statistics, Banking Section, Wash­
ington, D.C. 20551.



Benchm

ark

Measures of the money stock have been benchmarked to incorporate data from the June, Sep­
tember, and December 1980 call reports and
certain data on deposits collected as a result of
the Monetary Control Act (MCA). In addition,
the inclusion of traveler’s checks of nonbank
issuers has raised the levels of Ml-A and the
broader aggregates although it has had minimal
effects on their growth rates.
The bulk of the new data called for by the
MCA are now used in computing the money
stock. New reports of deposits for institutions
with total deposits of between $2 million and $15
million have been incorporated; in January 1981,
these institutions began reporting for one week
each quarter with one-third of them reporting
each month. The benchmark also incorporates
daily data on deposits reported since November
1980 for foreign-related institutions—U.S.
branches and agencies of foreign banks and Edge
Act corporations—and for other checkable de­
posits (OCD) at thrift institutions with total de­
posits greater than $15 million as of December
1979. Daily deposit data of nonmember commer­
cial banks with deposits greater than $15 million
had been incorporated at the time of the preced­
ing benchmark revision in January 1981. Efforts
are currently under way to convert to the use of
daily data on time and savings deposits at thrift
institutions.
The largest revisions to growth in Ml-A and
Ml-B were for early 1981 (table 1). M l-A growth
was lowered in the first quarter of this year,
mainly because of the new reports by quarterly
reporting banks. Growth in Ml-B also was low­
ered as an upward revision in OCD at quarterly
reporting institutions did not offset the down­
ward revisions to demand deposits at these insti­
tutions and to NOW accounts at savings and loan
associations. The pattern of revisions to growth

540

1.

Federal Reserve Bulletin □ July 1981

Comparison of old and revised growth rates of
the monetary aggregates, 1979-81
Quarterly averages, seasonally adjusted at annual rates, in
percent
Aggregate and
quarter

Ml-A
1979: 4 .
1980: 1 .
2 .

3.
4.
1981: 1 .
Ml-B
1979: 4 .
1980: 1 .
2 .

3.
4.
1981: 1
M2
1979: 4 .
1980: 1 .
2 .

3.
4.
1981: 1 .
M3
1979: 4 .
1980: 1 .
2 .

3.
4.
1981: 1 .

Old rate

Revised rate

4.2
5.2
-4.8
11.5

Difference

4.0
5.2
-4.9
11.3

8.0

-18.6

-

8.2
20.8

4.6

4.7
6.8

6.8

-2.9
13.9
10.9

-3.0
13.9
10.8

2
0
1

2
2
-

2. 2

1
0
1
0
1

r 6.6
l.l1

4.9

6.1

6.1

0

8.9
5.4
15.7

8.7
5.1
15.4

2

8.1

8.1

0

8.4

8.2

2

8.0

7.9
9.1

1
0
0
0
0

9.1
6.9
13.1
10.3

6.0

13.1
11.3
12.4

12.0

3
3

.4

1. Adjusted for shifts in 1981 into other checkable deposits from
sources other than demand deposits. See the text for a discussion of
shift adjustment.

rates for shift-adjusted Ml-B is similar to that for
Ml-B. Benchmark revisions to M2 growth in
1981 have been relatively small. Growth in M3
was raised for late 1980 and early 1981, primarily
as a result of the new daily data on largedenomination time deposits at foreign-related
institutions.

Se a so n a l A d ju stm

ent

M

ethods

Ordinarily, updating seasonal factors for com­
ponents of the monetary aggregates involves
application of standard programs—specifically,
the X -ll package—to historical data series incor­
porating data received since the last updating.
Revised monthly seasonal factors are derived
directly for each series. Weekly seasonal factors
are then constructed from the monthly factors on
the basis of historical intramonthly patterns and
the particular timing of weeks within each
month.



However, seasonal adjustment factors that are
derived using standard programs tend to be dis­
torted by unusual or deviant patterns.3 Thus the
updating of seasonal adjustment factors using
data for 1980 was complicated by the extraordi­
nary, and probably nonrecurring, patterns of
deposit flows in the spring and summer associat­
ed with the implementation and subsequent re­
moval of the special credit restraint program.4 In
addition, special treatment was given to the
changing composition of Ml-B brought about by
expansion of OCD in recent years.
Table 2 compares the old seasonal factors with
the new factors produced by standard seasonal
adjustment procedures incorporating data for
1980, both for the demand deposit component of
Ml-A and for the Ml-B transaction component
defined as demand deposits plus two-thirds of
OCD. The standard procedures produced new
seasonal factors for demand deposits that were
lower than the old factors—in some cases, mark­
edly so—for the March-to-July period, while new
factors for most remaining months were higher
(compare columns 1 and 2 or columns 4 and 5).
Preventing distortions to seasonal factors, there­
fore, requires a modification of these proce­
dures.
In the context of the X -ll method used by the
Board, an appropriate procedure is to preadjust
the series to minimize the effects of the uncom­
mon fluctuations in 1980 on the seasonal adjust­
ment factors. Preadjustment consists of remov­
ing from each series the estimated distortion
during the period of credit controls and its after3. While the X-ll program seeks to identify and eliminate
outliers, distinguishing a run of consecutive unusual observa­
tions from the trend-cycle or seasonal elements of series is
difficult or impossible for an automatic procedure. In particu­
lar, a sharp upswing or downswing that persists for a few
months and then ceases or reverses itself will tend to be
interpreted in part as a seasonal movement; moreover, sea­
sonal factors in adjacent years also will be affected.
4. For analyses of evidence of the effects of this program
on the demand for money, see Board of Governors of the
Federal Reserve System, New Monetary Control Proce­
dures, a Federal Reserve Staff Study (The Board, February
1981), especially Stephen Axilrod, “Overview of Findings
and Evaluation” (vol. I); and David Lindsey and others,
“Monetary Control Experience under the New Operating
Procedures;” Lawrence Slifman and Edward McKelvey,
“The New Operating Procedures and Economic Activity
since October 1979,” and Peter Tinsley and others, “Money
Market Impacts of Alternative Operating Procedures” (all in
vol. II).

Recent Revisions to the M oney Stock

2.

541

Seasonal factors for the transaction deposit components of Ml-A and M l-B, 1980
Ml-B
(demand deposits plus 2/3 of other checkable deposits)

Ml-A
(demand deposits)
Month

Old factor
based on data
through 19791

New factor

Old factor
based on data
through 19792

New factor
Without pre­
adjustment

With pre­
adjustment

(4)

(5)

(6)

1.019
.973
.978
1.015
.980
.996

1.021
.975
.978
1.014
.980
.996

1.022
.974
.977
1.012
.974
.993

1.020
.972
.977
1.013
.978
.997

1.004
.991
1.000
1.006
1.007
1.030

1.003
.989
.998
1.005
1.007
1.031

1.003
.992
1.002
1.008
1.009
1.031

1.005
.992
1.001
1.007
1.007
1.029

Without pre­
adjustment

With pre­
adjustment

(1)

(2)

(3)

January.............
February...........
March...............
April.................
May...................
June...................

1.021
.974
.978
1.014
.979
.995

1.022
.974
.976
1.012
.973
.993

July...................
August.............
September.......
October.............
November.......
December.........

1.005
.991
.998
1.007
1.007
1.029

1.003
.991
1.003
1.009
1.010
1.032

1. Previously published seasonal factors used for demand deposits
in both Ml-A and Ml-B.

2. These factors were computed for illustrative purposes and have
never been used in the construction of the aggregates.

math; seasonal factors are then calculated using
the preadjusted series.
The technique chosen to estimate the distor­
tions is the “intervention analysis” of Box and
Tiao.5 This procedure employs a model of the
data series, such as an ARIMA (autoregressive
integrated moving average) model, and augments
it by a functional form suitable for capturing the
effects of the “ intervention,” in this case the
imposition and subsequent removal of credit
controls.6 Each affected series is preadjusted by
removing that part of the fitted combined model
representing the intervention. The seasonal fac­
tors are obtained by applying the standard X -ll
program to the resulting series. These factors are
then applied to the original data to obtain the
seasonally adjusted series.
The seasonal adjustment factors derived by
the preadjustment procedure are shown in table
2, column 3 for the demand deposit component
of Ml-A and in column 6 for the transaction

deposit component of M l-B, which consists of
the total of demand deposits and two-thirds of
OCD (that part of OCD estimated to have shifted
out of demand deposits before 1981). In most
months revisions in seasonal factors are smaller
with the intervention technique than with the
standard seasonal adjustment procedure.

5. George E. P. Box and George C. Tiao, “Intervention
Analysis with Applications to Economic and Environmental
Problems,” Journal of the American Statistical Association,
vol. 70 (March 1975), pp. 70-79.
6. The use of models in seasonally adjusting the monetary
aggregates was recommended in a report recently submitted
by the Board’s Committee of Experts on Seasonal Adjust­
ment Techniques, and thus the present method of interven­
tion analysis is in accordance with the committee’s recom­
mendations. See Seasonal Adjustment of the Monetary
Aggregates (Board of Governors of the Federal Reserve
System, forthcoming).



C o n s t r u c t i n g Ml-B a n d S h i f t A d j u s t e d Ml-B i n 1981

The nationwide extension of NOW accounts at
year-end 1980 has led to a significant further
adjustment of the public’s asset portfolios to
newly available deposit accounts. In particular,
households have been shifting funds from sav­
ings deposits and other sources outside demand
deposits into NOW accounts, thereby raising
Ml-B. As a consequence, growth in Ml-B in
early 1981 has tended to overstate the underlying
expansion in the public’s transaction balances.
During this transitional period, the Federal Re­
serve has been publishing both Ml-B and an
adjusted M l-B, which abstracts from shifts to
newly opened OCD accounts. Basically, this
procedure removes from Ml-B inflows to OCD
accounts in 1981 estimated to have originated in
sources other than demand deposits.
The procedure for constructing the shiftadjusted measure of the narrow money stock

542

Federal Reserve Bulletin □ July 1981

involves estimating inflows to OCD accounts
after allowing for trend growth and seasonal
variations in those accounts in existence at the
end of 1980. Estimated inflows to OCD accounts
that were opened in 1981 are then apportioned
between inflows from demand deposits and those
from savings and other sources outside demand
deposits on the basis of evidence from samples of
depository institutions and households and
econometric techniques.7 This evidence suggests
that the proportion of growth in OCD—above
that attributable to accounts in existence before
1981—that was shifted or diverted from sources
other than demand deposits was about 20 to 25
percent in January and 25 to 30 percent in later
months.
Calculations of Ml-B and shift-adjusted Ml-B,
both seasonally adjusted, are based on the mid­
points of those ranges. The following seasonally
adjusted components are summed in deriving the
seasonally adjusted level of Ml-B: currency,
traveler’s checks, the level of OCD accounts in
existence at the end of 1980 plus their estimated
7. About 100 commercial banks provided information on
the sources of new OCD balances in January, February and
early March, and April; in May, nearly 400 banks were
sampled. In addition, cross-section econometric techniques
were applied to changes in demand deposits and changes in
OCD at about 9,000 banks that report weekly; the slope
coefficient of the regression of changes in demand deposits on
changes in OCD represents an estimate of the proportion of
OCD growth coming from demand deposits. About 100
savings and loan associations provided data on the sources of
inflows to new NOW accounts for January, March, and May.
Finally, the Survey Research Center of the University of
Michigan conducted surveys of about 700 households in
February, March, and April and of about 5,000 households in
June.




trend growth in 1981, the sum of demand depos­
its and OCD estimated to have come from de­
mand deposits during 1981, and OCD estimated
to have come from sources other than demand
deposits during 1981. From this total, subtraction
of a consolidation component representing the
amount of demand deposits owned by thrift
institutions estimated to be used in servicing
their OCD liabilities yields seasonally adjusted
M l-B.8 Finally, the shift-adjusted measure of
Ml-B equals Ml-B seasonally adjusted less sea­
sonally adjusted OCD estimated to have come
from sources other than demand deposits during
1981.9
Other checkable deposits seasonally adjusted
can be derived as the difference between Ml-B
seasonally adjusted and M l-A seasonally adjust­
ed, plus the Ml-B consolidation component.
Ml-A seasonally adjusted is constructed by sum­
ming the following seasonally adjusted compo­
nents: currency, traveler’s checks, and demand
deposits using the seasonal factor for demand
deposits (rather than the factor for transaction
deposits used in constructing Ml-B). Because
the behavior of demand deposits has been domi­
nated increasingly by variations in corporate and
other nonhousehold accounts as households
have shifted to OCD, the seasonal factor for
demand deposits differs slightly from the transac­
tion factor used in constructing Ml-B (table 1).
8. Such demand deposits are removed in order to avoid
double-counting since demand deposits of thrift institutions
appear in the demand deposit component.
9. The seasonal factor for commercial bank savings depos­
its is used to seasonally adjust this item.

543

Industrial Production
R elea sed fo r pu blication July 15
Industrial production edged down 0.1 percent in
June on a seasonally adjusted basis, as declines
occurred in the output of construction supplies,
home goods, and durable and nondurable materi­
als. There was a post-strike rebound in coal
production and moderate increases in other ener­
gy materials and in automotive products. In
addition, utility output advanced strongly be­
cause of a greater-than-seasonal surge in electric­
ity generation. Output in manufacturing de­
creased perceptibly. At 152.7 percent of the 1967
average, the total index in June was 7.9 percent
above the recession-affected level of a year earli­
er and 0.7 percent above the level of January
1981.
In market groupings, output of consumer
goods declined 0.3 percent in June. A rise in auto
production was more than offset by decreases in
the output of home goods such as appliances and
nondurable consumer goods—particularly food
and other staples. Autos were assembled at an
annual rate of 7.4 million units, 1.4 percent above
May. Output of business equipment continued to
lose momentum; production was essentially un­
changed in June, reflecting slight increases in
building and mining and manufacturing equip­

ment, but somewhat larger declines in transit,
commercial, and power equipment. Production
of defense equipment was essentially unchanged
for the second month. Output of construction
supplies was reduced 1.4 percent in June after
small declines in the previous two months.
Seasonally adjusted, ratio scale, 1967= 100

Federal Reserve indexes, seasonally adjusted. Latest fig­
ures: June. Auto sales and stocks include imports.

Major market groupings
1967 = 100

Percentage change from preceding month

1981

1981

Mayp

June6

Feb.

Mar.

Apr.

May

June

Percentage
change,
June 1980
to
June 1981

152.8
151.9
150.9
149.8
146.5
151.1
183.2
100.9
155.3
146.4
154.3

152.7
151.4
150.7
149.4
145.8
150.8
183.0
100.9
154.3
144.4
154.7

-.1
- .3
- .3
- .2
.1
- .3
-.3
- .8
- .5
-.1
.3

.5
.6
.9
.9
3.2
.0
1.2
.3
-.4
.2
.1

.0
.5
.7
.7
.5
.8
.9
.3
-.3
-.5
-.8

.4
.3
.4
.4
1.7
-.1
.6
.1
-.4
-.3
.7

-.1
-.3
-.1
-.3
-.5
- .2
-.1
.0
- .6
-1 .4
.3

7.9
6.2
5.9
5.1
13.7
2.2
7.8
4.2
7.5
12.4
10.5

Grouping

Total industrial production.....
Products, total.........................
Final products......................
Consumer goods...............
Durable..........................
Nondurable...................
Business equipment.........
Defense and space...........
Intermediate products.........
Construction supplies......
Materials...................................
p Preliminary.




e Estimated.

N o te . Indexes are seasonally adjusted.

544

Federal Reserve Bulletin □ July 1981

Major industry groupings
1967 = 100

Percentage change from preceding month

1981

1981

Mayp

June6

Feb.

Mar.

Apr.

May

June

Percentage
change,
June 1980
to
June 1981

152.9
143.6
166.4
135.9
170.5

152.2
142.7
165.9
141.3
172.5

-.1
- .5
.5
1.6
-1.5

.5
1.1
- .4
.1
.5

.4
.3
.4
-5.4
.0

.4
.7
.1
.1
.6

- .5
- .6
-.3
4.0
1.2

8.5
9.9
6.8
6.3
1.9

Grouping

Manufacturing.................
Durable........................
Nondurable.................
Mining.............................
Utilities............................
p

Preliminary.

e Estimated.

N ote.

Indexes are seasonally adjusted.

Output of materials increased 0.3 percent, as a
rise of 4.1 percent in the production of energy
materials—due mainly to the post-strike surge in
coal mining—more than offset declines in output
of 0.7 percent in durable materials and 0.3 per­
cent in nondurable materials.
In industry groupings, manufacturing output




was reduced 0.5 percent in June, reflecting de­
clines of 0.6 percent in durable goods manufac­
turing and 0.3 percent in nondurable goods in­
dustries. Reductions were widespread among
industries but most notable in primary metals,
lumber, and paper. Mining was up 4.0 percent,
and utility output increased 1.2 percent.

545

Statements to Congress
1979, having climbed in the late 1970s from the 55
percent area that had prevailed throughout the
period from 1968 to 1975. Many agricultural
bankers believed that they might be unable to
accommodate the increased loan demands they
expected from farmers in the spring of 1980.
However, even during this period of concern,
I appreciate this opportunity to appear before
changes were in train in deposit and loan trends
that subsequently alleviated the liquidity
your committee to discuss Federal Reserve poli­
squeeze. On the deposit side, favorable 1979
cy and the implications for the agricultural sec­
farm income and the availability of the attractive
tor. The Board recognizes the critical role of
new six-month money market certificate (MMC)
agriculture in meeting fundamental human needs
helped to maintain a substantial inflow of lendhere and abroad; we also are conscious of the
able funds. Meanwhile, with interest rates on
importance of a vital farm sector for the strength
loans at banks rising faster than those posted by
and stability of the American economy. We
production credit associations and the Farmers
know, too, that many segments of the agricultur­
Home Administration early last year, demands
al community are experiencing difficult times, in
for production credit were diverted from the
part because of financial conditions.
I
would note that the Federal Reserve has banks. The business recession also cut into non­
farm loan demands. As a result of all these
greatly enhanced its collection of data on farm
developments, agricultural banks saw their loancredit conditions and has become a significant
deposit ratio fall sharply last year, to 60 percent.
source of timely information in this area. In the
Thus far in 1981, loan growth at these banks has
mid-1970s, when it became evident that the vola­
picked up a bit, but deposit growth has kept pace
tility of agricultural commodity prices and of
credit conditions had increased, several regional
so that liquidity positions in the aggregate have
Reserve Banks joined in conducting quarterly
not deteriorated.
surveys of trends at agricultural banks. Then, in
However, as I noted, the more comfortable
1977, the Federal Reserve began a quarterly
credit availability situation has not isolated farm­
national survey of interest rates and other terms
ers from the stresses of high interest rates.
of bank loans to farmers. Most recently, an
Indeed, the direction of change in recent years
Agricultural Finance Databook was established
has been toward a greater integration of the
as a regular quarterly publication of the Board of
credit markets, lowering the old sectoral and
Governors.
geographic barriers. Credit developments across
An examination of the available data indicates
the economy tend now to follow a similar course.
quite clearly that, while the farm sector—like
In the case of agricultural banks, the six-month
others—is confronted today with a problem of
MMC has been a major factor in linking the local
high credit costs, it is not facing a significant
farm loan market to the national credit market.
problem with respect to credit availability. You
The MMC has enabled agricultural banks to
will recall the serious concerns about shortages
remain competitive in the market for savings,
of agricultural credit supply at rural banks in late
and in the process it has transformed their liabil­
1979 and early 1980. For agricultural banks na­
ity structure. The MMC was introduced in mid1978, and by March 1981 it accounted for 27
tionwide, the average loan-deposit ratio—one
percent of the total resources of agricultural
indicator of banks’ capacity to make additional
loans—had reached 68 percent by the fall of
banks; with large-denomination certificates of
Statement by Frederick H. Schultz, Vice Chairmany Board o f Governors o f the Federal Reserve
System, before the Subcommittee on Conserva­
tion, Credit, and Rural Development o f the Com­
mittee on Agriculture, £/.S. House o f Represen­
tatives, Jime 25, 795/.




546

Federal Reserve Bulletin □ July 1981

deposit ($100,000 plus) accounting for another 7
percent, roughly a third of the banks’ footings
were in the form of short-term deposits carrying
market-related rates.
The shift into MMCs from passbook savings
and other low-rate instruments resulted in a
marked upward adjustment of the average cost of
funds for agricultural banks, and that cost is
much more responsive than it was in the past to
swings in money market rates. Traditionally,
loan rates at rural banks have been based on the
average cost of funds, rather than on what the
banks could earn in the money market at any
given time. This sluggishness of average costs in
the pre-MMC era was mirrored in a comparative
stability of farm loan rates, but the transforma­
tion of bank liability structure that has occurred
over the past three years has changed this picture
drastically. For example, in our quarterly survey
of bank lending to farmers, the effective average
rate charged by smaller banks reached 17.1 per­
cent in May 1980—in a week when the national
business prime rate was 18 percent. It then fell to
13.7 percent in August, when the prime rate was
11 percent. In the latest survey, made this May,
the effective loan rate at the smaller banks was
17.5 percent at a time when the prime was 19
percent. Thus, farm loan rates at these banks,
which account for about five-sixths of farm lend­
ing, have been fluctuating much more than in the
past, though not so much as the business prime
rate.
At very large banks that are active in national
money markets and that account for the remain­
ing one-sixth of farm lending, the average farm
loan rate follows the prime quite closely, and is
usually slightly above it. In the May survey,
effective farm loan rates at these banks averaged
19.5 percent, just above the national business
prime.
Of course, individual loans show a substantial
dispersion of rates. In May, for example, 13
percent of the farm loan volume was reported at
effective rates of less than 16 percent, and 16
percent had rates above 20 percent. Thus, the
interest rate experience of individual farmers has
varied considerably. I might also note that, on
average, operators of small farms may have been
able to borrow at somewhat lower rates than
large farmers. At least, for example, the May
survey data show that the effective rates on loans



of less than $100,000 averaged 17.5 percent while
those on larger loans averaged 18.2 percent. At
small banks this difference has narrowed in re­
cent quarters, but it remains in evidence at large
banks.
On the whole, our figures indicate that farm
borrowers at banks have, on average, paid some­
what lower rates than most business borrowers
when market rates of interest have risen to high
levels. This does not, however, alter the fact that
interest charges have risen significantly for most
farmers, especially for those who are heavy
users of short-term production credit. These
higher interest costs inhibit agricultural invest­
ment and production just as they do investment
and production in other sectors of the economy.
Under the circumstances it is natural to ask
whether economic policies are being directed
toward easing the pressures on interest rates.
In answering this question, it is necessary to
recognize that inflation is the major source of the
high interest rates we have today. We are faced
with a deeply entrenched inflation and inflation­
ary psychology that has created major imbal­
ances and inefficiencies in our economy. Indeed,
by now it is widely accepted that ending the
inflation is absolutely essential if we are to put
the nation securely on a path of balanced eco­
nomic growth and high employment.
Inflation leaves its imprint on financial mar­
kets as surely as it does on the markets for
commodities and labor. In an inflationary envi­
ronment, nominal sales and incomes must rise in
order to maintain the same real levels of activity,
and so too must the nominal volumes of money
and credit. The inflated credit demands will be
met by lenders only if nominal interest rates rise
enough to compensate for the expected lower
purchasing power of the dollars with which debts
are repaid—and borrowers are willing to pay that
price when they share those expectations.
Once an inflation has gathered momentum, the
monetary authority has, at least in principle,
several options available to it, none of which are
especially appealing. It can seek to accommo­
date the enlarged demands for money and thus
attempt to sustain the real growth of the econo­
my. This approach has at least two major pitfalls.
First, the history of inflation suggests that it is
difficult to achieve a “ steady state”—inflation
tends to escalate. Second, even a steady inflation

Statem ents to Congress

tends, over time, in an economy like ours to
result in significant distortions and dislocations
that impose real economic costs.
Another option—one that some people have
advocated—is to apply a shock treatment by
completely shutting off the supply of money for a
period. Unfortunately, when inflationary expec­
tations are deeply embedded in contractual and
other arrangements, such a drastic approach may
rend the financial fabric and exact an unaccept­
able toll in terms of lost economic production.
A third option, and the one we are pursuing, is
in effect a middle course: We are putting the
economy on a strict monetary diet—a regimen
that will over time squeeze out the inflationary
fat from our financial flows and force adjust­
ments on the part of business and labor consis­
tent with a return to price stability. Such a
gradual approach is not without its risks. If the
commitment to the strategy is questioned, the
adjustments of wage and price behavior will be
slower and the economic costs correspondingly
greater. There also is the risk of misestimating
the effects of the selected policy targets, with the
consequence that more or less pressure may be
placed on the economy than is desirable. While
the scope for fine-tuning clearly is very limited, it
must be recognized that in a world of rapidly
changing financial institutions, technology, and
practices, a need exists to stay alert to the
possibility that a given monetary growth rate
may vary in its impact on financial markets and
the economy.
On balance, however, the risks of this gradual
approach are outweighed by its advantages. Con­
sequently, the Federal Reserve intends to contin­
ue seeking a slowing in monetary expansion. We
have set objectives for the growth of money this
year that imply a significant deceleration from
the pace of recent years, and we anticipate
further progress toward noninflationary rates of
monetary growth in the years ahead.
The consequences of this policy for interest
rates cannot be predicted with any precision.
Moreover, it must be emphasized that our poli­
cies are not aimed at attaining any particular
level or structure of interest rates. However,
knowing the concern of the committee about the
outlook for interest rates, let me make a few
general remarks. The first would be that the
initial direct impact of monetary restraint is to



547

place upward pressure on market interest rates—
especially shorter-term rates. As the availability
of money falls short of what is demanded, inter­
est rates tend to rise as businesses, households,
and others compete for the available supply. In
time, the higher rates also tend to damp spend­
ing, and thereby to ease inflationary pressures—
a process that may involve some economic slack.
This is the circumstance in which we seem to
find ourselves today. The degree and duration of
that slack can be greatly reduced if, on observing
the commitment of government to anti-inflation
policy, people adapt their wage and price deci­
sions quickly to the underlying economic reali­
ties.
As inflation and inflationary expectations be­
gin to wind down, the groundwork will be laid for
a moderation of interest rates. Over the long
haul, the size of the so-called inflation premium
is a major determinant of nominal interest rate
levels. In this respect, it is fair to say that the
Federal Reserve is pursuing a policy that offers
the best hope for a sustained reduction of interest
rates.
It is to be emphasized, however, that the path
to lower interest rates will be shorter and less
bumpy if other governmental policies move in
directions that are complementary to the thrust
of monetary policy. The most critical area in this
regard is the federal budget. An expansive feder­
al budget stimulates aggregate demand and, at
least initially, results in an enlarged deficit and a
greater federal call on the credit markets by the
federal government. Higher interest rates are the
result, so long as the Federal Reserve does not
deviate from its targets in order to accommodate
the government’s financial demands. Thus, be­
cause our economy is already being taxed by
high interest rates—and I speak not only of
agriculture, but of a good many other major
sectors—I urge you to place a top priority on
maintaining the current momentum toward cur­
tailment of the growth of federal spending. I
would urge you as well to exercise caution with
respect to tax cuts, to take care that any cuts are
not so great as to offset the deficit-reducing effect
of the expenditure restraint and that they are
focused as much as possible on fostering greater
productivity. In this latter regard, I believe that
the greatest productivity gains per dollar of re­
duced taxes are available if tax cuts are directed

548

Federal Reserve Bulletin □ July 1981

at the business sector, including the business of
agriculture; I recognize, however, that the high
personal tax burdens that have developed also
call for some remedy, and that well-designed
action on this front could well have a significant
payoff in terms of enhanced productivity. But I

would underscore again that it is crucial for the
Congress to keep an eye on the overall balance of
the spending-revenue package to ensure that
financial markets are not further strained in this
critical period of transition to a less inflationary
economy.
□

Statement by Paul A. Volcker, Chairman, Board
o f Governors o f the Federal Reserve System,
before the Subcommittee on Domestic Monetary
Policy o f the Committee on Banking, Finance
and Urban Affairs, U.S. House o f Representa­
tives', June 25, 1981.

among various savings outlets. Given the regula­
tory and economic constraints on long-estab­
lished savings and payments instruments, the
search for yield and liquidity has increasingly led
to the issue of close substitutes for traditional
deposit instruments. The resultant blurring of the
distinctions between what has traditionally been
considered money and these close substitutes
could result in potentially serious complications
for the conduct of monetary policy—particularly
for a policy approach that focuses on the mone­
tary aggregates. Considerations of equity and fair
treatment among institutions offering compara­
ble services arise as well. In a broader sense, I
am also concerned about the structural implica­
tions for the financial system of more and more
short-term liabilities subject to rapid shifting
among institutions.
Clearly, erosion of the distinctions between
services offered by depository and other finan­
cial institutions has occurred. This erosion un­
doubtedly reduces the impact, from the stand­
point of the economy as a whole, of many bank
and thrift institution regulations, and raises ques­
tions concerning the continued rationale of such
regulations. Among the regulations in question
are those governing the geographic expansion of
banks and thrift institutions, the range of serv­
ices they can offer, and restrictions on their
assets and liabilities. Alternatively, to the extent
such regulations clearly remain important in the
public interest, we are forced to consider wheth­
er their application needs to be extended to
newer institutions.
I will be touching upon a number of these
issues this morning in the course of suggesting a
logical framework for the regulatory treatment of
money market funds, but you will recognize that
many of the issues extend well beyond the scope
of my testimony today. Even so, actions taken to
affect money market funds must be formulated
with this broader background in mind.

I appreciate the opportunity to appear before you
to give the Federal Reserve Board’s views con­
cerning the role of money market funds in our
nation’s financial structure and the question of
what, if any, additional regulatory action is
called for.
Money market mutual funds have increased by
more than $100 billion since the end of 1978,
obviously becoming a significant competitive
force and institutional presence in financial mar­
kets. The rapid growth of money market mutual
funds over this period reflects a particular con­
stellation of market forces—especially the high
level of short-term interest rates, relative to both
past experience and longer-term interest rates,
and the regulatory framework applicable to es­
tablished depository institutions. Whether mon­
ey market mutual funds would remain so strong a
competitive force in a different market environ­
ment is not clear, but as matters now stand, it is
evident that the rapid growth of these funds is
having strong implications for the competitive
positions of financial institutions, the cost and
availability of credit to certain borrowers, and
the implementation of monetary policy.
As important as money market funds have
become, their expansion can be seen as part of
broader developments in U.S. financial markets
in recent years. Against the background of infla­
tion and interest rate pressures and uncertain­
ties, a progressive shortening in the effective
maturity of financial assets has occurred, in part
through much greater use of floating interest rate
arrangements and greater sensitivity to interest
rate differentials in the shifting of investor funds



S tatem ents to Congress

Backg ro u n d

The growth of money market funds and other
newer short-term financial assets has been fos­
tered by the economic, interest rate, and regula­
tory environment of the late 1970s and early
1980s. Our economy has suffered from rising
inflation over many years; as borrowers and
lenders have adapted to the more rapid pace of
price increases, interest rates have risen. The
higher rates of inflation and interest have in­
creased the penalty for holding demand deposits
or other assets whose yields are constrained,
whether directly by regulation, by other regula­
tory burdens, or by the inability of some institu­
tions to pay higher rates because they are locked
into older, lower-yielding assets. The increase in
rates has been more pronounced for shorter-term
assets than for longer-term ones, leaving short­
term yields above those that can be earned on
longer-term assets—the opposite of the relation­
ship usually prevailing since the 1930s—so that
new institutions dealing in short-dated instru­
ments on both sides of the balance sheet have
had an advantage. The public’s desire to hold
highly liquid short-term assets also appears to
have been boosted by a heightened sense of
uncertainty about the future course of the econo­
my and financial markets. This uncertainty is
fundamentally related to the strength and persis­
tence of inflation and its consequences for eco­
nomic and financial activity. High and volatile
interest rates have been one reflection of these
uncertainties. With less confidence among bor­
rowers, lenders, and intermediaries about their
ability to predict the future level of interest rates,
a tendency exists to minimize individual risks by
avoiding long-term credit agreements or by uti­
lizing floating-rate arrangements. However, it is
an open question, to say the least, whether the
individual “ self-protective” tendencies, which
only serve to redistribute risks, contribute to the
broader stability and solidity of the financial and
economic system as a whole.
Due to regulatory and economic constraints,
traditional deposit instruments have not satisfied
the public’s demand for high-yielding liquid as­
sets. From a regulatory perspective, the institu­
tions have been limited by interest rate ceilings
on deposits and, to a lesser extent, by the
requirement to hold nonearning reserves at the



549

Federal Reserve and other rules. Many institu­
tions are also limited in their capability to pay
market interest rates on all their deposits be­
cause they hold longer-term fixed-rate assets
acquired earlier when inflation and interest rates
were lower. Money market funds are not respon­
sible for the inability of many depository institu­
tions to meet the current preferences of inves­
tors, but they have benefited from this condition.
Money market funds offer a high-yielding asset
that also is highly liquid in that it can be re­
deemed quickly by a variety of methods without
the penalties associated with early withdrawal of
time deposits and with only a small risk of
declines in the market value of the investment.
The funds have attracted a diverse group of
shareholders. For many institutional investors—
such as bank trust departments—the appeal of
money market funds derives from the asset di­
versification and professional management the
funds offer at low cost. For these investors, the
funds primarily provide an alternative to direct
purchases of money market instruments. For
households and small businesses, on the other
hand, the low minimum purchase requirements
of the funds allow access to money market yields
by investors who otherwise would find their
short-term options quite circumscribed. A signif­
icant portion of the flows into money market
funds from these sectors has been diverted from
depository institutions.
Funds moving into money market funds are
simply recycled into purchases of money market
assets, both domestically and internationally.
Since most of these assets are issued by banks or
their large business customers, the growth of the
funds does not appear to have added to liquidity
pressures on depositories as a whole. But money
market funds do tend to concentrate their invest­
ments with the larger banks and corporations. To
the extent that money market funds are diverting
deposits from small banks and thrift institutions,
the effect is in the first instance to channel funds
away from the borrowers and geographic areas
more dependent on these institutions. While
market incentives will tend to redistribute the
funds to the point of demand, at least for a time
the distribution of credit is affected.
The tendency for money funds to divert re­
sources from small banks and thrift institutions
remains of concern to the Federal Reserve. The

550

Federal Reserve Bulletin □ July 1981

Board appreciates the industry efforts that have
been made to broaden the number of banking and
thrift institutions from which the money funds
will purchase negotiable certificates of deposit
(CDs). We also understand that those efforts
have been impeded by a variety of problems
involved with soliciting, packaging, and placing
CD issues from a large number of relatively small
institutions that have not ordinarily raised funds
in money markets. Private initiatives to over­
come these problems should be encouraged.
Thus far, the evidence suggests that a greater
proportion of the shares of money market funds,
taken as a whole, seem to substitute for time or
savings deposits—as well as purchases of short­
term securities—than for transaction balances.
Despite the easy redeemability of money market
fund shares, available aggregate data indicate
that such shares on the average turn over only
about three times each year—roughly compara­
ble to savings accounts—and that only a few
checks are drawn on the “ average” account
each year. However, these averages undoubted­
ly mask a significant amount of transaction activ­
ity. Moreover, indications are that such activity
may become more important. For one, several
brokerage houses apparently are contemplating
offering combined margin and money market
fund accounts with checking account capabili­
ties. If similar to accounts of this type currently
available, they will have no minimum denomina­
tion for checks and will be accessible by a credit
card, greatly increasing the opportunity for them
to be used extensively for transaction purposes.
The use of money fund balances for transactions
would be further encouraged if the discussions
now under way to link credit cards and money
market funds outside the context of margin ac­
counts come to fruition. Moreover, even the
relatively infrequent use of large checks against a
money market fund can enable a customer to
reduce his balance in a traditional checking ac­
count by bunching his “ small” checks on that
account after a transfer from a money market
fund.

C o m p e t it iv e C o n s id e r a t io n s

Because they have been able to restructure their
assets, many traditional intermediaries are pre­



pared to compete for savers’ dollars but are
prevented from doing so by regulations, such as
interest rate ceilings and reserve requirements,
that directly affect rates of return they can pay
the public. Some aspects of the operations of
money market funds are closely regulated by the
Securities and Exchange Commission, but the
impact of these rules on the yields that the funds
can offer to shareholders is small compared with
those limiting banks and thrift institutions. The
resulting disparity raises serious questions about
the ability of the deposit-taking institutions to
compete on an equal footing with intermediaries
offering newer instruments.
I don’t think we can take lightly the erosion of
the competitive position of our banks and thrift
institutions or of regulatory coverage. These
institutions have long been at the core of our
financial system and have many customers, es­
pecially for the particular types of credit they
extend, who have no easy alternatives. More­
over, the regulations circumscribing their actions
were not conceived arbitrarily. Reserve require­
ments, for instance, are a key part of the appara­
tus for the conduct of monetary policy and
presumably will be maintained permanently.
Other regulations, particularly those governing
interest rates, may now be seen to be no longer
necessary, desirable, or effective over time;
many of these are in the process of being phased
out. We are in the midst of a difficult transition
period in that respect, but we should not lose
sight of the desirability of equalizing competitive
conditions by removing regulatory burdens in
instances when that corresponds with sound,
long-range policy.

M

onetary

P

o l ic y

C o n s id e r a t io n s

In recent years there has been a deepening
recognition of the importance of controlling mon­
etary growth. This widely accepted approach
toward monetary policy depends, of course, both
on our ability to define and measure the growth
of “money” and on our ability to control effec­
tively that growth over reasonable periods of
time. The difficulties of defining and controlling
money are greater to the extent that institutional
change is rapid and new forms of “money”
become larger relative to the traditionally de­

Statem ents to Congress

fined monetary aggregates. For those reasons,
the rapid growth of the money market funds, or
similar developments that blur distinctions be­
tween transaction and nontransaction accounts,
have become potentially significant for monetary
policy.
These considerations are not new; concerns of
this kind lay behind the enactment last year of
the Monetary Control Act, which extended re­
serve requirements to transaction balances of all
depository institutions and to some extent clari­
fied the definition of transaction balances. At
that time, the decision was made to stop short of
money market funds in the coverage of reserve
requirements. Such funds have doubled since
that time, growing from $60 billion to $120 bil­
lion.
I would not suggest that the effectiveness of
monetary control has been crucially affected so
far. We have, however, had to make increasingly
difficult judgments about the implications of this
growth for the defined monetary aggregates. The
prospect for continued rapid growth of shares, in
money market funds, particularly should their
significance as transaction balances rise, as
seems likely, makes the issue much more point­
ed. A clear logical case exists for closing a gap in
a monetary control system built on the premise
that reserves should be assessed against transac­
tion balances wherever they might be held. Giv­
en recent and prospective developments, the
point has strong practical, as well as logical,
significance. If we are unwilling to cope with the
problems raised by the growth of these instru­
ments, we have to recognize and be prepared to
live with the consequences for the meaning and
control of particular monetary aggregates.
Competitive and equity considerations point in
the same direction. We should not be surprised
that money market fund assets rise relatively
rapidly when those funds do not bear regulatory
costs associated with similar instruments in de­
pository institutions.

POSSIBLE RESPONSES
Faced with these concerns, lawmakers and regu­
lators have a number of possible responses open
to them. One conceivable course is to do nothing
at all—to let the market take its course within the



551

current structure of regulation and control—
recognizing that some important regulations,
those affecting interest rates on consumer depos­
its, are in any event being phased out. Indeed, it
can be pointed out that the competitive pressures
of money market funds and other innovations
help assure the rapid phaseout of interest rate
ceilings, which would offer the consumer maxi­
mum advantage.
But compelling disabilities to that approach
exist. Reserve requirements, which from the
viewpoint of a depository institution are analo­
gous to a tax on transaction account business,
are a permanent part of the regulatory apparatus.
In that sense, money market mutual funds have
an artificial and continuing competitive advan­
tage, so long as interest is not paid on reserve
balances. Other things being equal, money funds
would continue to expand more rapidly and their
greater use as transaction accounts would be
induced. Traditional intermediaries would con­
tinue at a “permanent” disadvantage in attract­
ing some types of deposits, and small businesses
and other borrowers dependent on thrift institu­
tions and non-money-center banks for credit
extensions might find funds more expensive, or
less available, than otherwise. The increasing
use of money market funds for transaction pur­
poses would make interpretation of incoming
monetary data even more difficult, and the Fed­
eral Reserve’s control over a true transaction
aggregate would erode.
At another extreme would be the imposition of
stringent controls and regulations on the newer
instruments—placing the same regulatory con­
straints on them as now prevent banks and thrift
institutions from responding fully to investors’
desires. For money market funds, this might
entail subjecting them to interest rate ceilings,
putting all their shares under reserve require­
ments, or restricting their investments. Imple­
menting this approach could make the money
funds so unattractive that shareholders would
abandon them in favor of a return to direct
investment in money market instruments and
deposits at banks and thrift institutions. The
resources available to depository institutions
would be greater, although their profitability
might not be benefited significantly because
much of the additional growth in deposits un­
doubtedly would be concentrated in those tied to

552

Federal Reserve Bulletin □ July 1981

market rates. Any such inflow would be circum­
scribed by the strong continuing incentive to find
other methods to avoid the effects of regulations.
Considering the ingenuity of markets, we can be
quite confident that it would not be too long
before this subcommittee would once again be
holding hearings to discuss extending regulations
to new intermediaries or instruments. Moreover,
this approach would significantly penalize some
savers—reducing the returns available to them
and the variety of instruments they can invest
in—at a time when concern is widespread about
the inadequacy of savings flows in the economy.
The effect of these actions on the aggregate level
of savings would not likely be large, but the
direction would be clear and could be interpreted
as signalling a lack of concern about factors
tending to discourage savings.
A third possible approach might be to provide
for a greater degree of competitive equity among
institutions by reducing regulation of banks and
thrift institutions. With respect to interest rate
ceilings on time and savings deposits, such a
course already has been legislated to occur over
the next few years. Removal of these ceilings will
greatly enhance the ability of depository institu­
tions to compete with money market funds and
other innovative savings instruments. The speed
with which the deregulation can be accomplished
has been constrained by the earnings positions of
many institutions—that is, their holdings of lowyielding, longer-term assets will preclude their
soon being able to pay current market rates for a
much larger share of their liabilities. That con­
straint will become less binding over time as
existing assets mature, and the Depository Insti­
tutions Deregulation Committee (DIDC) has
some leeway for permitting more competitive
instruments. The DIDC has several suggestions
regarding the overall strategy of deregulation for
discussion at its meeting this afternoon. The
reality is that the condition of the thrift industry
limits the possible rapidity of prudent change,
but great progress can be made in this direction
over time.
We also must recognize that, even after inter­
est rate ceilings are liberalized, banks and thrift
institutions still will be subject to important
regulations that put them at a competitive disad­
vantage relative to money market funds. Two of
the most significant of these are the prohibition



of interest payments on demand deposits, which
will still affect business customers, and the hold­
ing of non-interest-earning reserves against
transaction and nonpersonal time deposits. If full
competitive equity is to be sought by removing
restraints from banks and thrift institutions, the
Congress would have to allow market forces to
determine returns on demand as well as time and
savings deposits. Reserve requirements, on the
other hand, must be left in place to facilitate
Federal Reserve control of the money stock. The
constraint of holding sterile reserves on the abili­
ty of banks and thrift institutions to compete for
funds would have to be eliminated by congres­
sional sanction for the Federal Reserve to pay
market rates of interest on required reserves.
If all these actions were taken, banks and thrift
institutions would be in a far better situation to
meet competition. Newer instruments, such as
money market funds, would not lose their appeal
entirely, but the potential for massive shifts into
these funds, causing their explosive growth and
attendant difficulties in defining and controlling
the money supply, would be greatly reduced.
However, I doubt that such changes are practi­
cally feasible over a relevant time period. More­
over, we would still face a transition period of
some years.

R ecom m ended A pproach

The approach I am proposing is designed to
provide a framework for fair competition be­
tween money market funds and established de­
pository institutions over time, to protect against
erosion in our ability to measure and control the
money stock, and to maintain attractive incen­
tives for savings. The proposal does not under­
mine the legitimate competitive role of money
market funds, nor should it be viewed as “the
answer” to the immediate pressures on thrift
institutions.
Specifically, the logic of the situation points to
legislation authorizing the Federal Reserve to
impose reserve requirements on those money
market fund shares that in fact serve as the
functional equivalent of transaction balances,
and to enforce a clearer distinction between
transaction balances and other liquid savings. In

Statem ents to Congress

other words, we are requesting that the basic
premise of the Monetary Control Act be kept
intact by extending its reserve requirement pro­
visions to encompass those money market mutu­
al fund shares that provide the function of trans­
action balances.
In our implementation of the Monetary Con­
trol Act, we have designated a transaction ac­
count as one that is accessible by check or debit
card or one that can be used with some frequen­
cy for third-party transfers by other means, such
as by telephone. The distinction between a trans­
action account and other accounts payable on
demand is inevitably difficult at the margin, and I
believe the Federal Reserve should retain suffi­
ciently flexible authority to put forward defini­
tions to include the many new types of plans with
transaction capability that are likely to be devel­
oped. An example might include plans that in­
volve an integral coupling of a credit card and a
money market fund or other account, even if the
money market fund is accessed only once each
month to pay accumulated charges.
Our expectation would be that money market
funds would react to the imposition of such
reserve requirements on shares that can be used
for transaction purposes by segregating such
accounts, subject to reserves, from accounts
without “checking” privileges. Customers
would be offered a choice among types of funds,
with the “transaction balance” account offering
a somewhat lower yield. During the short period
last year when marginal reserve requirements
were imposed on money market funds, fund
managements demonstrated the feasibility and
relative ease of “ cloning” their funds to accom­
modate changes in the regulatory environment.
Regulatory incentives to separate accounts
with transaction capabilities from those provid­
ing a convenient and relatively liquid outlet for
savings would have several beneficial conse­
quences. They would provide more positive
identification of the transaction component of
money market fund shares for statistical and
analytical purposes. Specifically, the “M l” defi­
nition of money would be cleaner. Monetary
control would not be complicated by movements
among different types of transaction accounts.
As a matter of equity, one important artificial
incentive favoring the use of money market
funds over traditional depository institutions



553

would be removed. These objectives are all fully
consistent with the philosophic framework of the
Monetary Control Act.
The approach proposed would in no way im­
pair the returns available to individuals looking
to money market mutual funds as an attractive
savings vehicle; such “nontransaction” ac­
counts would not be subject to reserve require­
ments. The fact is, even for those for whom the
transaction characteristics are important, yields
on transaction-oriented money market funds in
current circumstances would still exceed those
available on such accounts at other institutions.
There is no reason to believe that an approach
along the lines of our proposal would lead to
substantial shifts in the current distribution of
funds among depository institutions and money
market funds, although one perverse regulatory
incentive to the use of these funds as transaction
balances would be removed. In time, as interest
rate ceilings are phased out and as the constella­
tion of interest rates changes, the relative advan­
tages and disadvantages of money market funds
vis-a-vis depository institutions would reflect
market competition. Meanwhile, individuals and
businesses would be left with a full range of
choices.
The implementation of our proposal—straight­
forward and simple in concept—would require
the resolution of some difficult definitional and
other issues. Transaction accounts, as applied to
money funds, would need to be precisely de­
fined. More broadly, given the rapid pace of
innovation in our financial system and the blur­
ring distinctions among institutions, we should
recognize that other types of institutions may
also come to issue transaction-type accounts,
particularly if the traditional institutions remain
shackled by regulatory restraints and no interest
is paid on reserve balances. Our proposal is
confined to money market funds, in which
growth and competitive disparities are so evident
at present. We recognize that other new develop­
ments would eventually raise sensitive questions
of monetary control and competitive equity.
That possibility will be reduced to the extent
unnecessary constraints are removed from exist­
ing institutions, but we will, in any event, need to
keep these developments under review.
Similar treatment of money market fund
shares and deposits for reserve requirement pur­

554

Federal Reserve Bulletin □ July 1981

poses may raise the question of whether money
market funds might have access to Federal Re­
serve services and to federal insurance on share
accounts. We do not believe that is either neces­
sary or desirable. Reserve requirements are a
part of the apparatus of monetary control and, in
one significant respect, would “level the playing
field” in competition for transaction business.
However, those reserve requirements would not
otherwise impinge on the characteristics of the
funds or on their investment portfolios. Banks
and thrift institutions will be facing regulatory
ceilings on time and savings deposit rates for
some time and on demand deposit rates for the
foreseeable future. Their asset acquisitions and
other operations must conform to a host of other
regulations, including, for instance, the Commu­
nity Reinvestment Act. In other words, in impor­
tant respects depository institutions and money
funds are, and will remain, very different institu­
tions; comparable treatment with respect to re­
serve requirements does not, in our judgment,
require the same treatment in all respects; in­
deed, extending Federal Reserve services and
federal insurance privileges to the funds would
seem to imply that we also take the further step
of invoking the whole panoply of banking-type
controls, a step that would seem clearly unneces­
sary and undesirable.
Although our proposal addresses some of the
concerns generated by the growth of money
market mutual funds, we recognize that it does
not come fully to grips with a number of the
issues raised by the broader trends I discussed
earlier in my testimony. For example, it does not
address the questions of limits on bank services
and geographical location. In addition, it does
nothing to stem the movement toward shorter*
term assets and liabilities and deals only partially
with the resulting problem of differentiating
transaction and nontransaction balances. Al­
though it would treat those balances directly
accessible by transaction instruments as transac­
tion balances, it does little to distinguish such
balances from very liquid short-term assets that
are nearly equivalent to transaction balances
because they can be converted almost instantly
with little or no capital risk. Examples of such
balances might include overnight repurchase
agreements, savings accounts, and any varieties
of money market fund shares that might arise



without transaction privileges but were nonethe­
less immediately redeemable.
The growth of these close substitutes for trans­
action balances has implications for the conduct
of monetary policy since shifts between actual
transaction balances and these near-transaction
balances can change the relationship between the
monetary target and spending patterns. At the
same time, excessive reliance on what are in
effect demand obligations by financial institu­
tions may be an element of weakness in the
financial structure.
One approach to creating a more definitive line
between transaction and nontransaction ac­
counts would be to encourage a practice that
intermediary claims not subject to transaction
reserve requirements, significant price risk, or
early-withdrawal penalties have either a fixed or
minimum maturity or a notice requirement—that
is, some minimum mandatory waiting period
between a request for redemption and the receipt
of funds, perhaps of a few days. Such a require­
ment would force savers to decide which funds
they might want to have immediately available to
make purchases, and which they were putting
away for longer periods. That approach—with
the exception of savings deposits, on which
payment on demand has long been the custom—
has traditionally been embedded in banking prac­
tice and regulation. Market and competitive
pressures, however, seem to be working in the
other direction. In my judgment, sound legisla­
tive and regulatory practice would encourage
either notice or maturity requirements on non­
transaction accounts, including any new short­
term accounts authorized for established institu­
tions, and a similar approach would be relevant
for money market fund shares.

C o n c l u d in g C o m m e n t s

I am struck, and in many respects encouraged,
by the ability of our economic system to generate
new ideas and products to meet emerging needs.
“New” is not, however, always synonymous
with constructive. When the motive of change is
simply to escape from outmoded and unneces­
sary regulation, the regulation should be
changed; when the regulatory principle is sound,
evasion should be prevented.

Statem ents to Congress

555

Recent changes have in major part been stimu­
lated by the strong incentives growing out of high
and variable interest rates. Those incentives
should recede as we are successful in coping with
inflation, but it may take some time for rates to
decline and a more stable economic environment
to emerge. Moreover, advances in technology,
greater freedom for international flows of funds,
and the new packages of financial services facili­
tated by combinations of firms in different sec­
tors of the financial markets are likely to give rise
to further rapid developments in instruments and
techniques whatever the course of inflation, the
economy, and interest rates. That they will do so
is testimony to the vitality of our free market

system and to the wisdom of allowing wide
latitude for this system to operate.
As lawmakers and regulators, our responsibil­
ity is to see to it that this process of innovation
does not impair the requirements of monetary
policy formulation and implementation, nor in­
terfere with the necessity to protect the safety
and soundness of the financial system and the
public’s confidence in it. The proposals I have
reviewed today should be viewed in that light—
not as a futile effort to turn back the clock, to
discourage change, or to stifle a new institution,
but rather to provide a framework within which
change can be consistent with the continuing
needs of public policy.
□

Statement by Lyle E. Gramley, Member, Board
of Governors o f the Federal Reserve System,
before the Subcommittee on Monopolies and
Commercial Law o f the Committee on the Judi­
ciary, U.S. House o f Representatives, July 8,
1981.

these developments, however, is perhaps better
understood from a longer-term perspective. Let
me therefore begin by reviewing some major
trends in the financial services industry over the
past quarter-century.
During that period, the rate of inflation has
gone up sharply and has carried interest rates to
ever-higher levels in its wake. The premium on
maximizing the returns earned on financial assets
has therefore been greatly increased. House­
holds and businesses have paid increasing atten­
tion to protecting the real value of their assets
and have become increasingly sophisticated in
cash management techniques. The rapid pace of
technological change in the computer and com­
munications fields has contributed to these de­
velopments by opening new opportunities for
aggressive and competitive entrepreneurs to make
innovations in financial services. And as econo­
mies of major nations have become increasingly
interlocked, pressures of foreign competition
have encouraged changes in financial institutions
and the structure of financial markets.
Because of the increased sophistication of
customers and their heightened sensitivity to
interest rate differentials, depository institutions
can no longer expect an automatic flow of depos­
its into zero-interest checking and low-interest
passbook savings accounts. Consequently, these
institutions have sought to circumvent legislated
or regulatory interest rate ceilings by more ex­
tensive use of liabilities not subject to ceiling,
such as large, negotiable certificates of deposit,

I am pleased to be here today, on behalf of the
Federal Reserve Board, to discuss issues of
concern to this committee regarding recent merg­
ers within the financial services industry. News
reports of recent and proposed affiliations sug­
gest a rapid pace of change in the structure of this
industry. This committee is not alone in being
concerned with these developments. Commer­
cial banks and thrift institutions are uneasy about
the increasing incursions into their traditional
domain. The Federal Reserve Board is also keen­
ly interested for a number of reasons. It is one of
the financial regulatory agencies charged—to­
gether with the Comptroller of the Currency and
the Federal Deposit Insurance Corporation—
with responsibilities for preserving healthy com­
petition in the financial sector and for a safe and
sound banking system. In addition, it must be
alert to developments in financial markets that
have a bearing on its responsibilities for the
conduct of monetary policy.
Public attention has recently been captured by
a few mergers of large firms in the financial
services industry, and by announcements of affil­
iations between brokerage firms and firms pro­
viding “bank-life” services. The significance of



556

Federal Reserve Bulletin □ July 1981

or by offering imaginative new services, such as
automatic transfer accounts. New institutions,
such as the money market mutual funds, have
also sprung up. Major regulatory changes—such
as the authorization of money market certificates
(MMCs) in 1978 and the phasing out of depositrate ceilings just announced by the Depository
Institutions Deregulation Committee—have been
made in response to these circumstances. As a
result, an enormous expansion has taken place in
the variety of financial assets available to savers.
As I noted earlier, technological advances are
playing an important role in this changing struc­
ture of the financial services industry. Without
advances in the computer and telecommunica­
tion industries, automatic transfer, pay-byphone, and similar services would be prohibitive­
ly expensive. Automation of data production and
transmission will continue to have a major role in
shaping the financial industry. An increasing
volume of financial transactions will be cleared
electronically through automated clearing­
houses, or transferred by wire. These technologi­
cal developments will allow virtually instanta­
neous flows of funds between financial
instruments and institutions at very low cost.
Pressures to provide more and better financial
services have blurred the distinctions between
classes of financial institutions and between fi­
nancial and nonfinancial firms. This develop­
ment is still far from complete. Differences re­
main between banks and savings and loan
associations, although these differences are nar­
rowing. And the once-firm boundaries between
depository institutions and other types of finan­
cial firms and between financial and nonfinancial
businesses are also weakening. The recent merg­
ers are, thus, one more illustration of a general
trend that has been under way for a number of
years.
Viewed from the perspective of securities mar­
kets, another important forerunner of recent
affiliations between brokerage firms and other
financial institutions was the introduction of
competitive brokerage rates on securities in
1975. This change reduced the profit margins on
traditional lines of brokerage business and en­
couraged aggressive firms to diversify their ac­
tivities. Some firms could not survive, and a
substantial number of mergers have occurred in
the brokerage industry. This has not, however,



led to a diminution of alternatives available to
consumers. In fact, just the opposite has oc­
curred. A wide array of different types of retail
brokerage firms have come into existence. Some
firms provide a complete line of products, includ­
ing investment research and advice. Others pro­
vide securities transaction services at sizable
discounts and very little else. The result has been
an increase in the options available to the inves­
tor at lower prices. The investor can choose
between full service or limited services, high or
low commissions, massive investment research
or none at all.
These developments in the brokerage industry
help to explain the shrinking differentiation be­
tween brokerage firms and other financial institu­
tions. They also illustrate that change and con­
solidation may result in increased competition,
new services, and lower prices for consumers in
the financial services industry.
Let me now turn to your question regarding
the possible effects of these trends on banks and
thrift institutions, and particularly on the smalland medium-sized institutions. How will these
institutions fare in a world of increased competi­
tion? The record of the past two decades and
longer, when competition among financial insti­
tutions was steadily increasing, attests to the
basic strength of our nation’s depository institu­
tions and their capacity to adapt to a changing
environment.
Table 1 shows, for example, that banks sup­
plied 27 percent of the total credit borrowed by
the nonfinancial sector in the five years from
1976 to 1980. This percentage is lower than the
share banks provided in the 1960s and in the first

1.

Credit supplied to nonfinancial sectors as
percentage of total borrowing by nonfinancial
sectors1
Five-year averages

Period

1951-55
1956-60
1961-65
1966-70 .
1971-75
1976-80

Commercial
banks

Mutual savings
banks and
savings and
loans

Credit unions

20.0
20.8
31.4
31.2
29.5
26.9

18.8
22.1
23.3
13.1
18.5
15.6

.9
1.4
1.2
1.4
1.6
1.6

1. Data based on annual flows, excluding equities.
S ource . Flow of funds data, Federal Reserve Board.

Statem ents to Congress

2.

Acquisition of deposits from the household
sector as percentage of total household
acquisitions of deposits and credit market
instruments1
Five-year averages

Period

Commercial
banks2

Mutual savings
banks and
savings and
loans

Credit unions

1951-55.............
1956-60 ...........
1961-65 ...........
1966-70 ...........
1971-75.............
1976-80 ...........

32.4
25.5
43.3
43.3
39.1
34.2

39.5
38.6
38.5
22.8
34.3
29.6

2.4
2.6
2.6
2.6
3.4
3.3

1. Data based on annual flows.
2. Includes demand, savings, and time deposits.
S ource . Flow of funds data, Federal Reserve Board.

five years of the 1970s, but it is well above the 20
percent share that prevailed in the 1950s.
The share of total credit supplied by mutual
savings banks, savings and loan associations,
and credit unions, on the other hand, has not
changed markedly during the past 15 years, but is
below what it was in the 1950s and early 1960s.
The share of total household savings in the
form of deposits and credit market instruments
captured by commercial banks has also de­
creased from the level of the 1960s, as table 2
indicates. Again, however, this share is higher
than it was in the 1950s. The thrift industry’s
share of household savings in these forms, how­
ever, has declined over the 30-year period. These
data do not, of course, reflect the influence on
deposit shares of negotiable order of withdrawal
(NOW) accounts and share draft accounts.
Moreover, the gradual removal of Regulation Q
interest rate ceilings may help to reverse this
downward trend at thrift institutions.
3. Profit data for commercial banks
Five-year averages in percent

Period

Net income to
total assets
All banks

1951-55
1956-60 .......
1961-65 . . . .
1966-70 .
1971-75. . .
1976-80

.58
.68
.72
.78
.83
.78

Net income to total
equity capital

Small banks1 All banks

.95
1.06

8.03
8.50
8.80
10.80
12.36
12.56

Small banks1

12*
52
13.16

1. Includes all banks insured by the Federal Deposit Insurance
Corporation with assets of less than $100 million and excludes new
banks in the year of their formation. Data not available before 1970.
S ource . Federal Reserve Board.




557

Further indication of the ability of commercial
banks to compete can be found in the history of
their earnings. Rates of return on assets and
equity capital for the banking industry are pre­
sented in table 3. For the industry as a whole,
profitability has risen over the past 30 years.
Evidently, the commercial banking system has
coped quite successfully with innovation and
change.
For most of the past decade, thrift institutions
also held their own (table 4); their earnings were
close to those of earlier periods. Earnings of
thrift institutions, however, are very sensitive to
changes in rates of interest. During the past year
or so, the combined effects of rapid increases in
interest rates and the imbalance between the
maturity of assets and liabilities of thrift institu­
tions have sharply reduced earnings in the thrift
industry. Thrift institutions will be subject to
earnings problems until they are able to make
more new, higher-yielding mortgage loans, and
in other ways to diversify their asset portfolios.
4. Net income to average assets for thrift institutions
Five-year averages or annual data, in percent
Period

Savings and
loans1

1961-65 ..........................
1966-70 ..........................
1971-75............................
1976-80 ..........................
1979..................................
1980.................................

.80
.56
.65
.61
.67
.14

Mutual savings
banks
.45
.30
.47
.40
.47
-.1 0

1. Data for savings and loans insured by the Federal Savings and
Loan Insurance Corporation before 1976. All savings and loans
included for 1976 and later.
S ources . National Association of Mutual Savings Banks and
Federal Home Loan Bank Board.

The earnings experience of all banks or thrifts,
however, need not reflect the problems of small­
er institutions. Data for these smaller institutions
are more difficult to obtain but table 3 shows
earnings of small banks over the past decade.
Earnings were higher for the small banks in the
second half of the decade than in the first, and
higher also than for large banks. Indeed, even
ratios of earnings to capital for small banks
exceed those for large banks, despite the fact
that ratios of capital to assets of small banks are
roughly double those of larger banks.
Other evidence also supports the view that
small banks can survive in the current environ­

558

Federal Reserve Bulletin □ July 1981

ment. For 1980, a detailed sample of small banks
shows that in 156 of 265 standard metropolitan
statistical areas the smallest size category of
banks in each area earned a higher average
return on assets than the largest size group in
each area. Thus, even in these large and highly
competitive urban markets small banks have
been competing effectively.
How is it possible for a small bank with, for
example, less than $100 million of assets to hold
its own against multi-billion-dollar banks? Part of
the answer is that relatively few economies of
large-scale operations exist in commercial bank­
ing. That conclusion has emerged from a number
of careful empirical studies.
In addition, small banks offer many of the
unique services of the specialty shop. A custom­
er may be able to talk directly to the senior bank
officers, rather than to a branch manager who
has limited decisionmaking power. Moreover, if
a customer requires a specialized bank service
that cannot be supplied by the small bank direct­
ly, arrangements can often be made to provide it
through one of the small bank’s correspondents.
I would hazard the guess that a substantial
demand will continue for the specialized services
that small banks provide. Consider for a moment
the evidence from other industries. In the retail
trade sector, giant chain department stores offer
a wide range of products in outlets across the
nation. Also, small specialty shops offer one or
two product lines. Similarly, retail food outlets
differ markedly in their size and degree of spe­
cialization. And, although high rates of business
births and deaths occur in retailing, many exam­
ples of competition exist among long-established
stores of differing sizes. Yet another, more strik­
ing illustration can be found in the steel indus­
try—in which small firms, using new technology,
are able to compete effectively with industrial
giants both here and abroad.
Let me turn next to the question of how
consumers of financial services are affected by
recent trends. Thus far, consumers have clearly
benefited from the interwoven effects of product
innovation and institutional deregulation. More
firms are competing in the sale of more financial
services than before. Some of them are old-line
financial firms; others are new or predominantly
nonfinancial firms offering financial services.
The consumer has increased freedom to pick



and choose between institutions, services, and
pricing systems. For example, savers are able,
more readily, to obtain market rates of return on
a larger part of their financial assets. Nationwide
expansion of NOW accounts carries this process
another step by enabling households to receive
interest on checking accounts. At the same time,
consumers are learning to shop among institu­
tions imposing different minimum balances and
service charges. Previously, many of these
charges were, in effect, netted against low or
zero interest payments on accounts rather than
appearing explicitly.
Similarly, financial services increasingly are
being unbundled. Rather than dealing with one
institution for all services, the consumer has the
option to deal with a variety of service vendors.
The services of a checking account may be
purchased from a commercial bank while the
saver has the option to place temporarily idle
balances in a money market mutual fund and
obtain a consumer loan from yet another type of
financial institution. One-stop shopping may still
appeal to many consumers, but other attractive
alternatives are available as well.
Can we be sure that these benefits extend to all
classes of customers—including farmers, local
communities, minorities, and small businesses?
Or will the needs of customers for credit and
other financial services be neglected? The an­
swer to that question requires weighing benefits
and costs. On the benefit side of the ledger, these
specific groups of customers can expect to gain,
much as consumers in general, from heightened
competition, from the ability to obtain market
rates of interest on financial assets, and from the
unbundling and more explicit pricing of services.
In addition, business and household borrowers
generally can expect to gain because more and
more banks are entering new market areas by
opening loan production offices, Edge Act affili­
ates, and commercial lending subsidiaries. Also,
thrift institutions are beginning to offer types of
loans previously available primarily at commer­
cial banks.
Recent changes in financial practices have also
altered significantly the way in which a limited
supply of credit is allocated among potential
borrowers. Interest rates have increasingly re­
placed nonprice limitations as a means of ration­
ing the available amount of credit. Before the

Statem ents to Congress

authorization of money market certificates and
the subsequent additional modifications in de­
posit interest rate ceilings, individuals would
divert funds from depository institutions to mar­
ket securities in periods of sharply rising interest
rates. This shift in savings flows would result in a
sharply reduced availability of loans—for mort­
gage and construction financing, and for farmers,
small businesses, and others. Recent regulatory
changes and financial innovations have substan­
tially reduced the extent to which monetary
restraint results in sharp reductions in the avail­
ability of credit to particular borrowers. But this
has been done at the expense of much higher
interest rates to these borrowers.
This point can be illustrated as it relates to
credit costs and availability to local communities
and to the agricultural sector. Before the sixmonth MMCs were introduced in mid-1978,
small rural banks found that they often lost
deposits to the pull of higher interest rates in the
central money markets, and they sometimes had
difficulty in meeting the loan demands of their
regular customers. The MMC has enabled agri­
cultural banks to remain more competitive in the
market for savings—and it has played a particu­
larly important role in enabling rural banks to
compete against money market mutual funds,
which may tend to divert funds to urban areas.
By March of this year, slightly less than three
years after it was introduced, the MMC account­
ed for 27 percent of the total resources of agricul­
tural banks.
The shift into MMCs from passbook savings
and other low-rate instruments, however, has
resulted in a marked increase in the average cost
of funds at these banks, and it has made their
costs much more responsive to swings in money
market rates. Consequently, farm loan rates
have risen sharply and now tend to fluctuate in
response to changes in the overall level of inter­
est rates.
Thus, when financial markets provide savers
with more opportunities to earn market interest
rates, credit flows more freely to borrowers.
Financial markets operate more efficiently in
channeling funds to the highest bidder. But,
when inflation pushes interest rates to extremely
high levels, this market efficiency imposes se­
vere cost increases on those sectors of the econ­
omy most dependent on credit.



559

What conclusions for antitrust policy flow
from this assessment of developments in the
financial services industry? Let me point out,
first, that we see hundreds of mergers and acqui­
sitions in banking each year. Fortunately, how­
ever, hundreds of new banks are also estab­
lished, and the number of banking organizations
has changed little in the past decade. Actually,
the proportion of total bank deposits held by the
largest banks has declined slightly over the
years.
Will these highly publicized recent mergers
between nonbank financial firms squeeze out
competitors? To do so the merged firms must
first produce successful operational entities. It is
still too early to tell whether this development
will occur. Many mergers do not produce the
expected cost reductions or profit growth. The
results are sometimes disappointing, even when
the merging firms produce the same or closely
related products. In other cases, years elapse
before the benefits of the merger are realized.
For example, in the 1960s great concern arose
about industrial conglomerates, but many of
those conglomerate firms never achieved the
expected profit results, and in some cases the
acquired firms were later divested.
The success of recent financial conglomerates
has yet to be proven. Can a salesperson in a
brokerage office be as knowledgeable about
money market funds, life insurance, and real
estate as he is about stocks and bonds? That is
not clear. The specialist in each of these areas
may have an advantage in information and expe­
rience. In addition, the commission system may
orient the salesperson toward his major product
rather than other less remunerative lines.
Market factors frequently result in the market
share of a combitied firm being less than the sum
of the market shares of the merging firms. For
example, the merger between American Express
and Shearson may cause some banks to regard
American Express as a major competitor and to
reduce their willingness to purchase services
supplied to banks by American Express. More­
over, if a particular merger is successful, new
entry by competitors into the most profitable
service lines will be encouraged.
These considerations suggest that recent
trends in the structure of the financial services
industry do not raise immediate alarms about the

560

Federal Reserve Bulletin □ July 1981

resulting effects on the pricing and availability of
financial services to the public. The developing
pattern of conglomerate mergers bears watching,
but it is much too early to suggest a need for
policy actions. These developments do raise
questions for the Federal Reserve, however,
regarding how to preserve equitable competition
among different types o f financial institutions
while maintaining their safety and soundness and
the effective operation o f monetary policy. I
would like to discuss these issues briefly.
One important question is how to achieve an
equitable environment for competition among
commercial banks, thrift institutions, and other
producers of financial services. The Monetary
Control Act of 1980 set in motion some important
steps toward this goal. Reserve requirements will
be adjusted so as ultimately to impose a uniform
requirement on all regulated institutions. The act
also required the Federal Reserve to charge
explicit prices that cover costs for the financial
services it provides and to permit private firms to
compete with it in providing check-clearing and
other services. The schedule for phasing out
interest rate ceilings adopted by the Depository
Institutions Deregulation Committee at its June
25 meeting provides a program for adjusting
interest rates to market levels. N ow , institutions
can plan their full transition to the new deregulat­
ed environment.
Banks and thrift institutions, nevertheless, re­
main more closely regulated than other financial
institutions with which they now compete. Ques­
tions arise concerning the constraints on geo­
graphic expansion by depository institutions.
When money funds and nonbank providers of
financial services can operate nationwide, is it
equitable to restrain banks to states or smaller
areas?
Limitations on the securities underwriting ac­
tivities of commercial banks and other similar
limitations imposed by the Glass-Steagall Act
may also need to be reexamined. A proper
balance between the safety and soundness of




financial institutions, on the one hand, and the
advantages of unfettered competition, on the
other, may entail a different range of commercial
bank activities today than it appeared to permit
when the Glass-Steagall Act was passed in the
1930s. Similarly, the question of the appropriate
mix of activities now applies to the broader class
of institutions that provides bank-like services.
Finally, recent developments also have impli­
cations for monetary policy. As Chairman
Volcker testified on June 25, measurement and
control of the monetary aggregates are compli­
cated by the existence of money market mutual
funds. The Board believes in the desirability of
legislation authorizing the Federal Reserve to
impose reserve requirements on those money
market fund shares that serve as the functional
equivalent of transaction balances and to enforce
a cleaner distinction between transaction bal­
ances and other liquid savings. In addition, we
believe the Federal Reserve should have the
authority to define transaction accounts for pur­
poses of reserve requirements so as to include
the many new types of plans with transaction
capability that may develop.
In concluding, I would like to emphasize that
the Board of Governors believes that recent
developments in the financial service industry
have, on balance, enhanced competition despite
the other complicated regulatory questions they
raise. These innovations are a sign of a healthy,
dynamic, and innovative financial sector. To be
sure, we need to monitor developments carefully
to ensure that changes such as the recent con­
glomerate mergers do not result in the develop­
ment of monopolies or monopoly power at some
future time. But the principal questions these
developments raise relate less to the maintenance
of competitive markets for financial services than
to the need to provide a more level playing field for
depository institutions and their competitors, to
maintain appropriate standards of prudence and
safety, and to ensure that the monetary controls of
the Federal Reserve are not undermined.
□

561

Announcements
R e v is io n

of

M o n e ta r y A ggregates

The money stock and related series (shown in
tables 1.10 and 1.21, pages A3 and A13 in this
B u l l e t i n ) have been benchmarked to incorpo­
rate data from recent call reports and other
sources. In addition, traveler’s checks of non­
bank issuers, not previously included in the
series because o f lack of data availability, have
been added to the historical series for M l-A and
the broader aggregates. This adjustment affects
growth rates only minimally.
Data on commercial bank deposits have been
benchmarked to the June, September, and D e­
cember 1980 call reports. Moreover, daily depos­
it data for foreign-related institutions— specifi­
cally, U .S. agencies and branches of foreign
banks and Edge Act corporations—and for other
checkable deposits at thrift institutions have
been incorporated. Such data have been reported
since November 1980 as a consequence of the
Monetary Control Act o f 1980 (MCA). Daily
deposit data o f nonmember commercial banks
with deposits greater than $15 million had been
incorporated at the time o f the previous bench­
mark in January 1981.
The current revision also incorporates new
data on deposits for institutions with total depos­
its between $2 million and $15 million as of
December 1979. These institutions report such
data for one week each quarter, based on a
staggered schedule under which one-third of all
such institutions report each month. All of these
smaller institutions reported in January 1981 and
since that time one-third reported in March,
another third in April, and the remaining third in
May.
The benchmark has lowered the level of de­
mand deposits. Revisions for late 1979 and
1980—which at a maximum lowered monthly
levels $1 billion or about lA percent of M l-B —
mainly reflect changes in demand deposit levels
o f foreign-related institutions and nonmember



commercial banks. Much larger downward revi­
sions in demand deposits for the first five months
of 1981 reflect new reports o f quarterly reporting
banks.
The other checkable deposit (OCD) compo­
nent of M l-B has been raised. The bulk of
revisions before 1981 reflects more comprehen­
sive definitions and detail on OCD balances of
thrift institutions collected on MCA-related de­
posit reports. These changes affect historical
data back to the beginning of the series. Since
early 1981, the OCD series has been revised
further upward, as an increase in OCD at quar­
terly reporting commercial banks more than off­
set a downward revision in negotiable order of
withdrawal (NOW) accounts at savings and
loans.
Relatively minor downward revisions have
been made in savings and small-denomination
time deposits. More substantial upward revisions
have been made in the large-denomination time
deposit series— especially in late 1980 and the
first five months of 1981—which reflect primarily
new daily deposit data on large time deposits at
foreign-related institutions. Also, recently avail­
able MCA-related data on interinstitutional hold­
ings of demand deposits have led to revisions in
the M l-B and M2 consolidation components.
The level of the narrow money stock has been
raised by the inclusion of traveler’s checks.
Revisions in growth rates for the narrow money
stock—which have been greatest in early 1981—
primarily reflect other adjustments. Growth of
M l-B in January and February has been lowered
while in April it has been raised. Quarterly
average growth in shift-adjusted M l-B in the first
quarter of 1981 has been reduced nearly 2 per­
centage points, to minus 3 percent at an annual
A
rate, and growth from the fourth quarter of 1980
to May 1981 has been lowered 3 percentage
A
point. The effects of the benchmark on M2
growth in 1981 have been quite small. Growth in
M3 has been raised, by nearly Vi percentage

562

Federal Reserve Bulletin □ July 1981

point, expressed annually, in the first quarter of
1981 and by 3 percentage point for the period
A
from the fourth quarter of 1980 to May 1981.
Benchmark revisions also have raised the level
of the broad measure of liquid assets, L.
Revised historical data are available on re­
quest from the Banking Section, Board of Gover­
nors of the Federal Reserve System, Washing­
ton, D .C ., 20551. Seasonal factors for the new
traveler’s check component for 1981 are shown
in the accompanying table.
Seasonal factors for traveler’s checks, 1981
Month

Seasonal factor

January.......................................................................
February......................................... ........................
March.........................................................................
April................................................. ........................
May................................................... ........................
J u n e................................................. ........................
July.............................................................................
A ugust............................................. ........................
September....................................... ........................
O ctober........................................... ........................
Novem ber....................................... ........................
Decem ber....................................... ........................

.940
.944
.945
.943
.959
1.042
1.130
1.123
1.065
1.012
.959
.937

R e g u l a t io n s D

and

Q: A m e n d m e n t s

The Federal Reserve Board has amended its
Regulations D (Reserve Requirements of Deposi­
tory Institutions) and Q (Interest on Deposits) to
permit the establishment of international banking
facilities (IBFs) in the United States.
The Board acted after consideration of com­
ment received on its December proposal to re­
vise its regulations to permit the establishment of
IBFs.
IBFs may be established, subject to conditions
specified by the Board, by U .S. depository insti­
tutions, by Edge and Agreement corporations
(domestically chartered corporations authorized
to engage in international or foreign banking, or
other international or foreign operations), and by
U .S. branches and agencies of foreign banks.
In general, under the rules adopted by the
Board, an IBF may accept deposits from and
extend credit to foreign residents or other IBFs.
All such funds will be exempt from reserve
requirements of Regulation D and from interest
rate limitations of Regulation Q. The Board
believes that establishment of IBFs at U .S. bank­



ing offices will enhance the international compet­
itive position of banking institutions in the Unit­
ed States.
The Board made its action effective December
3, 1981, in order to give all interested banking
institutions time to make necessary arrange­
ments for implementation of IBFs.
In amending its regulations respecting reserve
requirements and interest rate ceilings to permit
the establishment of IBFs, the Board made a
general statement of policy regarding the use of
IBF deposits and IBF loans.
The policy statement said, in part:
The Board expects that, with respect to nonbank
customers located outside the United States, IBFs will
accept only deposits that support the customer’s oper­
ations outside the United States and will extend credit
only to finance the customer’s non-U.S. operations.
Deposits should not be used as a means of circumvent­
ing interest rate restrictions or reserve require­
ments. . . .
This policy, the Board specified, must be
communicated in writing to all IBF nonbank
customers when a credit or deposit relationship
is first established, and the Board supplied a
model statement that could be used for this
purpose. In addition, IBFs are required to obtain
acknowledgment of receipt of such notice from
nonbank customers that are foreign affiliates of
U .S. residents whenever a deposit or credit
relationship is first established with an IBF. The
Board also supplied a model statement for ac­
knowledgment by the IBFs.
Under the rules established by the Board,
IBFs may, free of federal reserve requirements
or interest rate limitations, do the following:
1. Offer to foreign nonbank residents time
deposits with a minimum maturity, or required
notice period prior to withdrawal, of two busi­
ness days. Such deposit accounts require mini­
mum deposits and withdrawals of $ 100,000.
2. Offer time deposits to foreign offices of
U .S. depository institutions or foreign banks, to
other IBFs, or to the parent institution of an IBF
with a minimum one-day (overnight) maturity.
3. Extend credit to foreign residents (includ­
ing banks), to other IBFs, or to the parent
institution of an IBF.
IBF loans and deposits may be denominated
either in U .S. dollars or in foreign currencies.

Announcements

Advances by an IBF to U .S. offices of its
parent institution will be subject to the reserve
requirement on Eurocurrency liabilities of the
U .S. office in the same manner as advances from
a foreign office to its U .S. office.
IBFs will be subject to the same examination
and supervisory procedures as apply to other
operations o f its parent institution. The Board
may require special reports from IBFs for moni­
toring monetary and credit conditions and for
other purposes.

P r o p o s e d A c t io n s
The Federal Reserve Board has published for
comment two alternative proposed amendments
to its Regulation T (Credit by Brokers and Deal­
ers) concerning margin requirements for trading
of options on government and government agen­
cy debt issues. The Board asked for comment by
August 3, 1981.
The Board has also invited comment on a
proposal to amend its Regulation Y (Bank Hold­
ing Companies and Change in Bank Control) to
include the issuance of traveler’s checks in the
list of nonbanking activities permissible for bank
holding companies. The Board invited comment
by August 31, 1981.
The Federal Reserve Board has proposed for
comment amendments to Regulation G (Securi­
ties Credit by Persons Other Than Banks, Bro­
kers, or Dealers), Regulation T (Credit by Bro­
kers and Dealers), and Regulation U (Credit by
Banks for the Purpose o f Purchasing or Carrying
Margin Stocks) concerning margin requirements.
The Board requested comment by September 15,
1981.

M e e t in g
C o u n c il

of

C o n su m e r A d v is o r y

The Federal Reserve Board has announced that
its Consumer Advisory Council met on July 29
and 30, 1981.
The Council, with 30 members who represent
a broad range o f consumer and creditor interests,




563

advises the Board on its responsibilities regard­
ing consumer credit protection legislation. The
Council generally meets four times a year.

Ch a n g e s

in

B o a r d S taff

The Board of Governors has announced the
following staff changes.
William W. Wiles, Associate Director in the
Division of Banking Supervision and Regulation,
named Secretary of the Board, effective June 15,
1981.
Larry J. Promisel, Assistant Director, Division
o f International Finance, promoted to Senior
Deputy Associate Director, effective June 22,
1981.
Dale W. Henderson, Assistant Director, Divi­
sion of International Finance, appointed Deputy
Associate Director, effective June 22, 1981.
The Board has also announced the retirement
of Charles R. M cNeill, Assistant to the General
Counsel, on April 18, 1981.

S yste m M e m b e r s h ip :
A d m is s io n o f S tate Ba n k s
The following banks were admitted to member­
ship in the Federal Reserve System during the
period June 11 through July 10, 1981:
Florida
Miami ............................................. Safra Bank
New York
N ew York .... Gotham Bank of N ew York
Oklahoma
Edmond ............. Citizens Bank of Edmond
Oregon
North Bend .. Citizens Bank of North Bend
Virginia
Phenix ................Bank of Charlotte County
Richmond ... Consolidated Bank and Trust
Company
Wyoming
R iverton ....................... Riverton State Bank

565

Record of Policy Actions of the
Federal Open Market Committee
Meeting Held on May 18, 1981
Domestic Policy Directive
The information reviewed at this
meeting suggested that growth of
real gross national product was
slowing in the current quarter from
the rapid pace in the first quarter,
but activity currently appeared
stronger than had been projected at
the time of the Committee’s meeting
on March 31. Real GNP had grown
at an annual rate of 6 V percent in the
2
first quarter, according to prelimi­
nary estimates of the Commerce D e­
partment, and additional data that
became available after release of the
preliminary estimates suggested that
growth had been even more rapid.
Average prices, as measured by the
fixed-weight price index for gross
domestic business product, have
continued to rise rapidly in the cur­
rent quarter, but somewhat less so
than earlier in the year.
The dollar value of total retail
sales increased slightly further in
March but declined appreciably in
April, reflecting mainly a sharp drop
in sales of new cars in response to
the ending of manufacturers’ price
rebates. Unit sales of new automo­
biles fell from an annual rate of 10.3
million units in March to 8.1 million
units in April. The value of sales
excluding automobiles and building
materials registered sizable gains in
both March and April.
The index of industrial produc­
tion, which had increased 0.5 per­
cent in March, rose 0.4 percent in
April. An increase in auto assem­
blies, to a rate substantially above
the recent pace of sales, was a major
factor in the April advance, and out­



put of business equipment and space
and defense products exhibited con­
siderable strength. A strike cut pro­
duction of coal in half and limited the
rise in the total industrial production
index by about 0.3 percentage point.
Nonfarm payroll employment
changed little in March and April
after adjustment for strikes, and the
unemployment rate was stable at 7.3
percent. In April employment con­
tinued to expand in service indus­
tries but declined considerably in
retail trade establishments and in
construction. Small employment
gains were recorded in the manufac­
turing sector, and the average fac­
tory workweek edged up 0 .1 hour to
40.1 hours.
Private housing starts in March
remained at the annual rate of about
VA million units recorded in Febru­
ary; during the preceding six
months, housing starts had been in a
range of 1.4 million to 1.6 million
units. Sales of new homes in March
continued at the reduced pace of
recent months, and sales of existing
homes declined further.
Producer prices of finished goods
rose at an annual rate of W 2 percent
in April, compared with an average
rate of 12 percent during the first
quarter. The surge of energy prices
that had characterized
earlier
months of the year abated in April,
and prices of consumer foods were
unchanged. Prices of crude food­
stuffs, however, rose sharply. The
rise in the consumer price index
slowed in March, reflecting a slow­
ing in price increases of energy items
and continued moderate increases in
food prices and homeownership
costs. Prices of other consumer

566

Federal Reserve Bulletin □ July 1981

items continued to rise at a relatively
rapid pace. Over the first four
months of 1981, the rise in the index
of average hourly earnings of private
nonfarm production workers was
slightly less rapid than the pace re­
corded during 1980.
In foreign exchange markets the
trade-weighted value of the dollar
against major foreign currencies had
risen by about 8 Vi percent since the
final days of March to its highest
level in 3 Vi years. In March the U .S.
trade deficit declined sharply, bring­
ing the first-quarter deficit to a level
well below the average in 1980. The
value and volume of exports rose
substantially from the fourth quar­
ter, and the value of imports in­
creased moderately.
At its meeting on March 31, the
Committee had decided that open
market operations in the period until
this meeting should be directed to­
ward behavior of reserve aggregates
consistent with growth in M -lB from
March to June at an annual rate of
5 Vi percent or somewhat less, after
allowance for the impact of flows
into NOW accounts, and growth in
M-2 at an annual rate of about 10 V
2
percent. If it appeared during the
period before the next regular meet­
ing that fluctuations in the federal
funds rate, taken over a period of
time, within a range of 13 to 18
percent were likely to be inconsis­
tent with the monetary and related
reserve paths, the Manager for D o­
mestic Operations was promptly to
notify the Chairman, who would
then decide whether the situation
called for supplementary instruc­
tions from the Committee.
In the latter part of April, incom­
ing data suggested that M-1B, after
adjustment for the estimated effects
of shifts into NOW accounts, was
growing at a rate well above the
short-run objectives set forth by the
Committee. Consequently, required
reserves increased more than the
supply of reserves being made avail­
able through open market opera­
tions. Banks adjusted to the con­



strained availability of reserves by
reducing excess reserves and by in­
creasing borrowings from the Feder­
al Reserve. In the two statement
weeks ending May 6 , member bank
borrowings averaged about $2.4 bil­
lion, compared with an average of
about $1 billion in the first three
statement weeks after the meeting
on March 31; and the federal funds
rate, which had averaged around
15 Vi percent in the first three weeks
of April, fluctuated within a range of
17 to 20 percent in the last days of
April and the first days of May. On
May 4 the Board of Governors an­
nounced an increase from 13 to 14
percent in Federal Reserve basic dis­
count rates and an increase from 3 to
4 percentage points in the surcharge
on frequent borrowings of large in­
stitutions.
In a telephone conference on May
6 , the Committee agreed that in the
brief period before the next regular
meeting scheduled for May 18, the
reserve path would continue to be
set on the basis of the short-run
objectives for monetary growth es­
tablished on March 31. It was recog­
nized that for a time monetary
growth might be high in relation to
those objectives and that the federal
funds rate might continue to exceed
the upper end of the range indicated
for consultation. In the period re­
maining until this meeting, bank re­
serve positions remained under pres­
sure, and federal funds typically
traded between 18 and 19 percent.
Growth in M-1B, adjusted for the
estimated effects of shifts into NOW
accounts, accelerated sharply in
April to an annual rate of about 14
percent. But adjusted M-1B had
grown from the fourth quarter of
1980 to the first quarter of 1981 at an
annual rate of only 1 percent, and its
level in April was well within the
Committee’s longer-run range for
that aggregate. M-2 had continued to
grow rapidly in April, and its level
continued above the upper end of its
longer-run range. Growth in the non­
transaction component of M-2

R ecord o f Policy Actions o f the FOM C

slowed markedly, however, as the
total of savings and small-denomination time deposits was about un­
changed and inflows into money
market mutual funds slowed.
Total credit outstanding at U .S.
commercial banks registered a slight
decline in March and grew at an
annual rate of about 4Vi percent in
April. Holdings of investments
changed little over the two months,
and growth in loans, particularly
business loans, was quite weak. Net
issues of commercial paper by nonfi­
nancial corporations declined in
April, following expansion at a rapid
pace in the first quarter. Issuance of
publicly offered bonds remained
heavy during April, and the volume
of new equity offerings rose consid­
erably.
Short-term market interest rates
had risen substantially over the peri­
od since the Committee’s meeting on
March 31: yields on Treasury bills
moved up 23 to 4 percentage points
A
while yields on private short-term
market instruments increased 4 V2 to
5lA percentage points. Most long­
term interest rates rose to record
levels and on balance advanced
about 1 percentage point. Over the
intermeeting interval, the prime rate
charged by commercial banks on
short-term business loans was raised
in steps from 17 V2 percent to 19 V2
percent. In home mortgage markets,
average rates on new commitments
for fixed-rate loans at savings and
loan associations rose above 16 per­
cent, from 15.40 percent at the end
of March.
The staff projections presented at
this meeting suggested that the surge
in growth of real GNP in the first
quarter would be followed by much
slower growth over the rest of 1981.
The rise in the fixed-weight price
index for gross domestic business
product was projected to moderate
as the year progressed but neverthe­
less to remain rapid.
In the Committee’s discussion of
the economic situation and outlook,
members commented on the consid­



erably greater strength in activity in
the first quarter than had been ex­
pected, and they continued to stress
the difficulties of economic forecast­
ing currently and the importance of
adhering to longer-term objectives.
While generally anticipating a sub­
stantial slowing of growth from the
exceptionally rapid pace now indi­
cated for the first quarter, a number
of members expressed the view that
expansion in activity over the rest of
the year was likely to continue to
exceed the rates typically being fore­
cast. The observation was made that
weakness in demands and activity
appeared to be confined to a few
sectors, albeit such major ones as
housing and automobiles, and that
the risks of a significant decline in
overall activity appeared to be tem­
pered by the prospect that some
accumulated backlogs of demands
would be activated whenever inter­
est rates declined. It was also sug­
gested, on the other hand, that high
and volatile interest rates could be­
gin to have a cumulative effect in
dampening activity, and that little
was known about the effects of fi­
nancial stress that might be develop­
ing.
At its meeting on February 2-3,
the Committee had adopted the fol­
lowing ranges for growth of the mon­
etary aggregates over the period
from the fourth quarter of 1980 to the
fourth quarter of 1981: M -l A and
M-1B, 3 to 5Vi percent and 3Vz to 6
percent respectively, after adjust­
ment for the estimated effects of
flows into NOW accounts; M-2, 6 to
9 percent; and M-3, 6 V to 9 V per­
2
2
cent. It was understood that the dis­
torting effects of shifts into NOW
accounts would change during the
year and that other short-run factors
might cause considerable variation
in annual rates of growth from one
month to the next and from one
quarter to the next.
In the Committee’s discussion of
policy for the period immediately
ahead, it was emphasized that on
March 31 the Committee had estab­

567

568

Federal Reserve Bulletin □ July 1981

lished an objective for growth of
M-1B (adjusted for the estimated ef­
fects of shifts into NOW accounts)
over the three months from March to
June at an annual rate of 5V percent
2
or somewhat less, and that growth in
April had greatly exceeded that
pace. According to a staff analysis,
some retardation of M-1B growth
over the remaining two months of
the quarter was to be expected, in
light of the greater pressure on bank
reserve positions that had developed
recently and the apparent slowing of
growth in nominal GNP in the cur­
rent quarter. But growth of M-1B
over the two-month period would
have to be negligible if the specifica­
tions adopted on March 31 were to
be realized.
The staff analysis also suggested
that growth of M-2 would be less
rapid over the second quarter than
had been anticipated earlier, reflect­
ing a slowing of growth in savings
deposits and small-denomination
time deposits as well as continued
weakness in money market mutual
funds. Thus, growth of the broader
monetary aggregates might begin to
move down toward their target
ranges for growth over the year from
the fourth quarter of 1980 to the
fourth quarter of 1981.
In considering objectives for mon­
etary growth over the remainder of
the quarter, the members in general
agreed that a posture of restraint
needed to be maintained. They gen­
erally agreed with the view that it
was particularly important to reduce
growth of the monetary aggregates
rather quickly, and initial differences
in views concerning the precise
specifications for monetary growth
were relatively narrow. In the dis­
cussion, a number of points were
emphasized. The indications of con­
tinuing strength in economic activity
combined with the recent exception­
al rise in the income velocity of
money posed the risk of pressure for
excessive expansion in money and
credit as the year developed.
Growth of the broader monetary ag­



gregates was already somewhat high
relative to the Committee’s ranges
for the year. The indications of some
slowing of the rise in the consumer
price index did not appear to reflect
as yet any clear relaxation of under­
lying inflationary pressures, and em­
phasis was placed on the importance
of conveying a clear sense of re­
straint at a critical time with respect
to inflation and inflationary expecta­
tions.
With respect to the federal funds
rate, it was again stressed that the
specification of an intermeeting
range for fluctuations over a period
of time provided a mechanism for
initiating timely consultations be­
tween regularly scheduled meetings
when it appeared that fluctuations
within the specific range were prov­
ing to be inconsistent with the objec­
tives for the behavior of the reserve
and monetary aggregates. The
ranges proposed for the period
ahead typically were from 16 or 17
percent to 21 or 22 percent.
At the conclusion of the discus­
sion, the Committee decided to seek
behavior of reserve aggregates asso­
ciated with growth of M-1B from
April to June at an annual rate of 3
percent or lower, after allowance for
the impact of flows into NOW ac­
counts, and growth in M-2 at an
annual rate of about 6 percent. A
shortfall in growth of M -lB from the
two-month rate of 3 percent would
be acceptable, in light of the rapid
growth in April and the objective
adopted by the Committee on March
31 for growth from March to June at
an annual rate of 5 V percent or
2
somewhat less. The members recog­
nized that shifts into NOW accounts
would continue to distort measured
growth in M -lB to an unpredictable
extent and that operational paths
would have to be developed in the
light of evaluation of those distor­
tions. The Chairman might call for
Committee consultation if it ap­
peared to the Manager for Domestic
Operations that pursuit of the mone­
tary objectives and related reserve

R ecord o f Policy Actions o f the FOM C

conditions that will help to reduce infla­
tion, promote economic growth, and
contribute to a sustaihable pattern of
international transactions. At its meeting
in early February, the Committee agreed
that these objectives would be furthered
by growth of M-l A, M- IB, M-2, and M-3
from the fourth quarter of 1980 to the
fourth quarter of 1981 within ranges of 3
to 5Vi percent, 2 V to 6 percent, 6 to 9
>i
percent, and 6 V to W 2 percent respec­
2
tively, abstracting from the impact of
introduction of NOW accounts on a na­
tionwide basis. The associated range for
bank credit was 6 to 9 percent. These
ranges will be reconsidered as conditions
warrant.
In the short run the Committee seeks
behavior of reserve aggregates consis­
tent with a substantial deceleration of
growth in M-lB from April to June to an
annual rate of 3 percent or lower, after
allowance for the impact of flows into
NOW accounts, and with growth in M-2
at an annual rate of about 6 percent. The
shortfall in growth of M-1B from the
two-month rate specified above would
be acceptable, in light of the rapid
growth in April and the objective adopt­
ed by the Committee on March 31 for
growth from March to June at an annual
rate of 5Yi percent or somewhat less. It is
recognized that shifts into NOW ac­
counts will continue to distort measured
growth in M-1B to an unpredictable ex­
tent, and operational reserve paths will
be developed in the light of evaluation of
those distortions. The Chairman may
call for Committee consultation if it ap­
pears to the Manager for Domestic Oper­
ations that pursuit of the monetary ob­
jectives and related reserve paths during
the period before the next meeting is
likely to be associated with a federal
funds rate persistently outside a range of
16 to 22 percent.

paths during the period before the
next meeting was likely to be associ­
ated with a federal funds rate persis­
tently outside a range of 16 to 22
percent.
The following domestic policy di­
rective was issued to the Federal
Reserve Bank of N ew York:
The information reviewed at this meet­
ing suggests that real GNP will grow
much less rapidly in the current quarter,
following the substantial expansion in
the first quarter; prices on the average
have continued to rise rapidly, although
somewhat less so most recently than
earlier in the year. The dollar value of
total retail sales increased slightly fur­
ther in March, but it declined apprecia­
bly in April when sales of new cars fell in
response to the ending of price conces­
sions. Industrial production rose moder­
ately in both months, while nonfarm
payroll employment changed little, after
adjustment for strikes, and the unem­
ployment rate was stable at 7.3 percent.
In March housing starts remained at a
reduced pace. Over the first four months
of 1981, the rise in the index of average
hourly earnings was slightly less rapid
than during 1980.
The weighted average value of the
dollar against major foreign currencies
has risen steadily since the end of March
to its highest level in three and a half
years. The U.S. trade deficit declined
sharply in March, bringing the first-quar­
ter deficit to a level well under the 1980
average.
Growth in M-1B, adjusted for the esti­
mated effects of shifts into NOW ac­
counts, accelerated sharply in April and
growth in M-2 remained rapid. Since
March, both short-term and long-term
market interest rates have risen substan­
tially. On May 4 the Board of Governors
announced an increase in Federal Re­
serve discount rates from 13 to 14 per­
cent and an increase in the surcharge
from 3 to 4 percentage points on frequent
borrowings of large institutions.
The Federal Open Market Committee
seeks to foster monetary and financial
s|e

Votes for this action: Messrs.
Volcker, Solomon, Boehne, Boykin,
Corrigan, Gramley, Partee, Rice,
Schultz, Mrs. Teeters, Messrs. Wal­
lich, and Winn. Votes against this ac­
tion: None. (Mr. Winn voted as an
alternate member.)
s|e

s
fc

s
fe

Records of policy actions taken by the Federal Open Market Committee at each meeting, in the
form in which they will appear in the Board’s Annual Report, are made available a few days after
the next regularly scheduled meeting and are later published in the B u l l e t i n .




569

571

Legal Developments
A m endm ents

to

R e g u l a t io n s D

and

Q

Part 204—Reserve Requirem ents o f D epository
Institutions
Part 217—Interest on D eposits
International Banking Facilities
The Board of Governors has amended Regulation D—
Reserve Requirements of Depository Institutions
(12 CFR Part 204) and Regulation Q—Interest on
Deposits (12 CFR Part 217) to authorize beginning
December 3, 1981, the establishment in the United
States of international banking facilities (“IBFs”) by
U.S. depository institutions, Edge and Agreement
Corporations, and branches and agencies of foreign
banks located in the United States. Under the rules
adopted by the Board, an IBF may accept deposits
from foreign residents (including banks) or from other
IBFs. Such funds will be exempt from reserve require­
ments of Regulation D and from interest rate limita­
tions of Regulation Q. IBFs will be permitted to offer
to foreign nonbank residents large denomination time
deposits with a minimum maturity or required notice
period prior to withdrawal of at least two business
days. In addition, IBFs will be permitted to offer
overnight time deposits to foreign offices of U.S.
depository institutions or foreign banks, to other IBFs,
foreign central banks, or to the institution establishing
the IBF. Funds raised by an IBF could be used only to
extend credit to foreign residents, to other IBFs, or to
the institution establishing the IBF. Funds derived by
an institution from its own IBF would be subject to
Eurocurrency reserve requirements. The Board be­
lieves that the establishment of IBFs at U.S. banking
offices will enhance the international competitive posi­
tion of banking institutions located in the United
States.
1. Effective December 3, 1981, Regulation D (12 CFR
Part 204) is amended as follows:

(1) For a depository institution or an Edge or Agree­
ment Corporation organized under the laws of the
United States, the sum, if positive, of the following:
(i) net balances due to its non-United States of­
fices and its international banking facilities
(“IBFs”) from its United States offices;
(ii)(A) for a depository institution organized under
the laws of the United States, assets (including
participations) acquired from its United States
offices and held by its non-United States of­
fices, by its IBF, or by non-United States
offices of an affiliated Edge or Agreement Cor­
poration;1 or
(B) for an Edge or Agreement Corporation,
assets (including participations) acquired from
its United States offices and held by its nonUnited States offices, by its IBF, by non-United
States offices of its U.S. or foreign parent
institution, or by non-United States offices of
an affiliated Edge or Agreement Corporation;1
and
(iii) credit outstanding from its non-United States
offices to United States residents (other than
assets acquired and net balances due from its
United States offices), except credit extended (A)
from its non-United States offices in the aggregate
amount of $100,000 or less to any United States
resident, (B) by a non-United States office that at
no time during the computation period had credit
outstanding to United States residents exceeding
$1 million, (C) to an international banking facility,
or (D) to an institution that will be maintaining
reserves on such credit pursuant to this Part.
Credit extended from non-United States offices or
from IBFs to a foreign branch, office, subsidiary,
affiliate or other foreign establishment (“foreign
affiliate”) controlled by one or more domestic
corporations is not regarded as credit extended to
a United States resident if the proceeds will be
used to finance the operations outside the United
States of the borrower or of other foreign affiliates
of the controlling domestic corporation(s).

Section 204.2— Definitions
*

*

*

*

*

(h) “Eurocurrency liabilities” means:



1 This subparagraph does not apply to assets (1) that were acquired
before October 7, 1979, or (2) that were acquired by an IBF from its
establishing entity before the end of the fourth reserve computation
period after its establishment.

572

Federal Reserve Bulletin □ July 1981

(2) For a United States branch or agency of a
foreign bank, the sum, if positive, of the following:
(i) net balances due to its foreign bank (including
offices thereof located outside the United States)
and its international banking facility after deduct­
ing an amount equal to 8 per cent of the following:
the United States branch’s or agency’s total as­
sets less the sum of (A) cash items in process of
collection; (B) unposted debits; (C) demand bal­
ances due from depository institutions organized
under the laws of the United States and from
other foreign banks; (D) balances due from for­
eign central banks; and (E) positive net balances
due from its IBF, its foreign bank, and the foreign
bank’s United States and non-United States of­
fices; and
(ii) assets (including participations) acquired from
the United States branch or agency (other than
assets required to be sold by Federal or State
supervisory authorities) and held by its foreign
bank (including offices thereof located outside the
United States), by its parent holding company, by
non-United States offices or an IBF of an affiliated
Edge or Agreement Corporation, or by its IBFs.1
2. In section 204.2(t), footnote 1 is redesignated as
footnote 2.
3. Section 204.8 is redesignated section 204.9.
4. By adding a new section 204.8, as follows:
Section 204.8— International Banking Facilities
(a) Definitions. For purposes of this Part, the follow­
ing definitions apply:
(1) International banking facility or IBF means a set
of asset and liability accounts segregated on the
books and records of a depository institution, Unit­
ed States branch or agency of a foreign bank, or an
Edge or Agreement Corporation that includes only
international banking facility time deposits and in­
ternational banking facility extensions of credit.
(2) International banking facility time deposit or
IBF time deposit means a deposit, placement, bor­
rowing or similar obligation represented by a prom­
issory note, acknowledgment of advance, or similar
instrument that is not issued in negotiable or bearer
form, and
(i)(A) that must remain on deposit at the IBF at
least overnight; and
(B) that is issued to
(1) any office located outside the United



States of another depository institution orga­
nized under the laws of the United States or
of an Edge or Agreement Corporation;
(2) any office located outside the United
States of a foreign bank;
(3) a United States office or a non-United
States office of the entity establishing the
IBF;
(4) another IBF; or
(5) an institution whose time deposits are
exempt from interest rate limitations under
section 217.3(g) or Regulation Q (12 CFR
217.3(g)); or
(ii)(A) that is payable
(1) on a specified date not less than two
business days after the date of deposit;
(2) upon expiration of a specified period of
time not less than two business days after the
date of deposit; or
(3) upon written notice that actually is re­
quired to be given by the depositor not less
than two business days prior to the date of
withdrawal;
(B) that represents funds deposited to the credit
of a non-United States resident or a foreign
branch, office, subsidiary, affiliate, or other
foreign establishment (“foreign affiliate”) con­
trolled by one or more domestic corporations
provided that such funds are used only to
support the operations outside the United
States of the depositor or of its affiliates located
outside the United States; and
(C) that is maintained under an agreement or
arrangement under which no deposit or with­
drawal of less than $100,000 is permitted, ex­
cept that a withdrawal of less than $100,000 is
permitted if such withdrawal closes an account.
(3) International banking facility extension o f credit
or IBF loan means any transaction where an IBF
supplies funds by making a loan, or placing funds in
a deposit account. Such transactions may be repre­
sented by a promissory note, security, acknowledg­
ment of advance, due bill, repurchase agreement, or
any other form of credit transaction. Such credit
may be extended only to
(i) any office located outside the United States of
another depository institution organized under the
laws of the United States or of an Edge or
Agreement Corporation;
(ii) any office located outside the United States of
a foreign bank;
(iii) a United States or a non-United States office
of the institution establishing the IBF;
(iv) another IBF;

L egal D evelopm ents

(v) an institution whose time deposits are exempt
from interest rate limitations under section
217.3(g) of Regulation Q (12 CFR 217.3(g)); or
(vi) a non-United States resident or a foreign
branch, office, subsidiary, affiliate or other for­
eign establishment (“foreign affiliate”) controlled
by one or more domestic corporations provided
that the funds are used only to finance the opera­
tions outside the United States of the borrower or
of its affiliates located outside the United States.
(b) Acknowledgm ent o f use o f IBF deposits and exten­
sions o f credit. An IBF shall provide written notice to
each of its customers (other than those specified in
§ 204.8(a)(2)(i)(B) and § 204.8(a)(3)(i) through (v)) at
the time a deposit relationship or a credit relationship
is first established that it is the policy of the Board of
Governors of the Federal Reserve System that depos­
its received by international banking facilities may
be used only to support the depositor’s opera­
tions outside the United States as specified in
§ 204.8(a)(2)(ii)(B) and that extensions of credit by
IBFs may be used only to finance operations outside
of the United States as specified in § 204.8(a)(3)(vi). In
the case of loans to or deposits from foreign affiliates
of U.S. residents, receipt of such notice must be
acknowledged in writing whenever a deposit or credit
relationship is first established with the IBF.
(c) Exemption from reserve requirements. An institu­
tion that is subject to the reserve requirements of this
Part is not required to maintain reserves against its
IBF time deposits or IBF loans. Deposit-taking activi­
ties of IBFs are limited to accepting only IBF time
deposits and lending activities of IBFs are restricted to
making only IBF loans.
(d) Establishment o f an international banking fa cility.
A depository institution, an Edge or Agreement Cor­
poration or a United States branch or agency of a
foreign bank may establish an IBF in any location
where it is legally authorized to engage in IBF busi­
ness. However, only one IBF may be established for
each reporting entity that is required to submit a
Report of Transaction Accounts, Other Deposits and
Vault Cash (Form FR 2900).
(e) Notification to Federal R eserve. At least fourteen
days prior to the first reserve computation period that
an institution intends to establish an IBF it shall notify
the Federal Reserve Bank of the district in which it is
located of its intent. Such notification shall include a
statement of intention by the institution that it will
comply with the rules of this Part concerning IBFs,
including restrictions on sources and uses of funds,



573

and recordkeeping and accounting requirements. Fail­
ure to comply with the requirements of this Part shall
subject the institution to reserve requirements under
this Part and to interest payment limitations that may
be applicable under Regulation Q (12 CFR Part 217) on
its IBF time deposits, or result in the revocation of the
institution’s ability to operate an IBF.
(f) Recordkeeping requirements. A depository institu­
tion shall segregate on its books and records the asset
and liability accounts of its IBF and submit reports
concerning the operations of its IBF as required by the
Board.
5. In sections 204.3(a), 204.3(a)(l)(ii), 204.3(a)(2)(ii),
204.3(c), 204.4(b)(1), 204.4(b)(l)(ii), 204.4(b)(2),
204.4(b)(2)(ii), 204.4(d), 204.4(g)(2)(ii)(A), 204.4(g)(2)
(ii)(B), and 204.4(g)(2)(iii), references to sections
“204.8,” “204.8(a),” or “204.8(b)” are redesignated
as references to sections “204.9,” “204.9(a),” or
“204.9(b),” respectively.
Effective December 3, 1981, Regulation Q (12 CFR
Part 217) is amended as follows:
Section 217.1—Definitions
For purposes of this Part, the following definitions
apply unless otherwise specified:
(a) Dem and deposit. The term “any deposit which is
payable on demand,” hereinafter referred to as a
“demand deposit,” includes every deposit that is not a
“time deposit,” “international banking facility time
deposit,” or “savings deposit,” as defined in this
section.

(b) Time deposit. The term “time deposit” means
“time certificates of deposit,” “time deposits, open
account,” and “international banking facility time
deposit,” as defined in this section.

(1) International banking facility time deposit or
IBF time deposit means a deposit, placement, bor­
rowing or similar obligation represented by a prom­
issory note, acknowledgment of advance, or similar
instrument that is not issued in negotiable or bearer
form and
(1) that is payable
(A) on a specified date not less than two busi­
ness days after the date of deposit;
(B) upon expiration of a specified period of
time not less than two business days after the
date of deposit; or

574

Federal Reserve Bulletin □ July 1981

(C) upon written notice that actually is required
to be given by the depositor not less than two
business days prior to the date of withdrawal;
(2) that represents funds deposited to the credit of
a non-United States resident or a foreign branch,
office, subsidiary, affiliate, or other foreign estab­
lishment (“foreign affiliate”) controlled by one or
more domestic corporations provided that such
funds are used only to support the operations
outside the United States of the depositor or of its
affiliates located outside the United States; and
(3) that is held under an agreement or arrange­
ment under which no deposit or withdrawal of less
than $100,000 is permitted, except that a with­
drawal of less than $100,000 is permitted if such
withdrawal closes an account.

Section 220.6— Certain Technical Details

(j) Innocent m istakes. If any failure to comply with
this part results from a mechanical mistake made in
good faith in executing a transaction, recording, deter­
mining, or calculating any loan, balance market price
or loan value, or other similar mechanical mistake, the
creditor shall not be deemed guilty of a violation of this
part if promptly after the discovery of such mistake he
takes whatever action may be practicable in the cir­
cumstances to remedy such mistake.

Section 217.7— Maximum Rates of Interest
Payable by Member Banks on Time and
Savings Deposits

(k) Credit related to portion o f a security. Credit for
the purpose of purchasing or carrying any part of an
investment contract security (for example, but not
limited to, the cattle ownership portion of a program to
own and feed cattle, or the condominium ownership
part of a program to own and rent a unit through a
rental pool or otherwise) shall be deemed to be credit
on the entire security.

(a) Time deposits o f $100,000 or more and IBF time
deposits. There is no maximum rate of interest pres­

B a n k H o l d in g C o m p a n y a n d B a n k M e r g e r
Or d e r s I s s u e d b y th e B o a r d o f G o v e r n o r s

ently prescribed on any time deposit of $100,000 or
more or on IBF time deposits issued under section
217.1(1).

Orders Under Section 3 o f Bank Holding
Company A ct

*

*

*

*

*

Buhl Bancorporation, Inc.,
Buhl, Minnesota
A m endm ent

to

R e g u l a t io n T

Part 220—Credit by Brokers and Dealers
Amendment to Delete Provision Permitting Use
of Foreign Currency in a Margin Account
The Board of Governors has amended its Regulation T
(12 CFR § 220) to delete the paragraph permitting the
use of foreign currency in a margin account. It has
been called to the Board’s attention that the existing
language of section 220.6, paragraph (j) may permit the
speculative holding of foreign currency and securities
in a margin account. By deleting section 220.6, para­
graph (j), the Board clarifies that such a possibility is
prohibited and that such transactions in foreign cur­
rency should be effected in the Special Commodities
Account or the Special Miscellaneous Account, since
in either case, they would be insulated from securities
credit transactions.
Effective July 13, 1981, the Board of Governors has
amended Section 220.6 by deleting paragraph (j) in its
entirety, and redesignating paragraphs (k) and (1) as
paragraphs 0) and (k) respectively.



Order Denying Formation o f a Bank Holding
Company

Buhl Bancorporation, Inc., Buhl, Minnesota, has ap­
plied for the Board’s approval under section 3(a)(1) of
the Bank Holding Company Act (12 U.S.C.
§ 1842(a)(1)) of formation of a bank holding company
by acquiring 95.1 percent of the voting shares of The
First National Bank of Buhl, Buhl, Minnesota
(“Bank”).
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views has expired,
and the Board has considered the application and all
comments received in light of the factors set forth in
section 3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant, a nonoperating corporation with no sub­
sidiaries, was organized for the purpose of becoming a
bank holding company by acquiring Bank, which holds
deposits of $5.3 million.1 Upon acquisition of Bank,
1. All banking data are as of September 30, 1980.

Legal D evelopm ents

Applicant would control the 551st largest bank in
Minnesota and would hold approximately 0.02 percent
of the total commercial bank deposits in the state.
Bank is the 13th largest of 15 banking organizations
in the relevant banking market and holds approximate­
ly 1.2 percent of the total deposits in commercial
banks in the market.2 While a principal of Applicant
and Bank is also a principal in another banking organi­
zation, it does not compete in the relevant banking
market. It appears from the facts of record that
consummation of the proposal would not result in any
adverse effects upon competition or increase the con­
centration of banking resources in any relevant area.
Accordingly, the Board concludes that competitive
considerations are consistent with approval of the
application.
The Board has indicated on previous occasions that
a holding company should serve as a source of finan­
cial and managerial strength to its subsidiary bank(s),
and that the Board would closely examine the condi­
tion of an applicant in each case with this consider­
ation in mind. In this case it is the Board’s judgment
that the record with respect to this proposal presents
adverse financial considerations that warrant denial of
the application.
With regard to financial considerations, the Board
notes that in connection with this proposal Applicant
would incur a sizable debt, which it proposes to
service over a 16-year period through dividends to be
declared by Bank, tax savings to be derived from filing
consolidated tax returns, and projected improvements
in Bank’s earnings. The reliability of Applicant’s pro­
jections of Bank’s deposits and earnings growth,
which bear on Bank’s future capital needs, is of
considerable importance. Applicant anticipates reach­
ing a debt-to-equity ratio of less than 30 percent by the
end of the twelfth year, while maintaining an adequate
capital level in Bank. In this regard, the Board is of the
view that Applicant’s overall projections, which are
based on Bank’s recent performance, are somewhat
optimistic. The Board notes that since the acquisition
of Bank by Applicant’s principal in August 1978,
Bank’s overall operations have improved. However, it
is the Board’s judgment that Bank has not demonstrat­
ed a favorable record of performance over a sufficient­
ly long period of time to support Applicant’s projec­
tions. Specifically, Applicant’s projections of Bank’s
earnings appear to be overly optimistic, while its
projections of growth are unrealistically low; this is
particularly apparent when compared to the earnings
and growth of the other banks located in Bank’s FDIC
area, as well as the earnings and growth of Applicant’s
affiliated banking organization. Moreover, the uncer­
2.
The relevant banking market is approximated by St. Louis
County less its southern one-third and northwestern one-eighth parts.




575

tainty inherent in relying upon earnings projected a
number of years into the future premised upon the
short earnings cycle under present management,
makes it difficult for the Board to conclude that this
proposal warrants approval. Accordingly, based on
the record with respect to this proposal, the Board
concludes that Bank is unlikely to generate sufficient
earnings to enable Applicant to service its debt while
maintaining adequate capital in Bank, as well as af­
fording Applicant the flexibility to meet any unfore­
seen problems that might arise at Bank. While Bank
has shown considerable improvement under Bank’s
present management, and managerial considerations
may be viewed as lending weight for approval, it is the
Board’s judgment that Applicant’s principals, never­
theless, have not established a sufficiently long record
of performance at Bank to mitigate the significant
adverse financial considerations associated with the
application. Accordingly, the Board is of the opinion
that the considerations relating to financial resources
and future prospects of Applicant and Bank weigh
significantly against approval of the application.
No significant changes in services offered by Bank
are expected to follow from consummation of the
proposed transaction. Consequently, convenience and
needs factors are consistent with, but lend no weight
toward, approval of this application.
On the basis of the above and all the facts of record
on this application, the Board concludes that the
banking considerations associated with this proposal
present significant adverse factors bearing upon the
financial resources and future prospects of Applicant
and Bank. Such adverse factors are not outweighed by
any procompetitive effects or by benefits to the conve­
nience and needs of the community to be served.
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 denied.
On the basis of the facts of record, the application is
denied for the reasons summarized above.
By order of the Board of Governors, effective
June 25, 1981.
Voting for this action: Vice Chairman Schultz and Gover­
nors Rice and Teeters. Voting against this action: Governor
Gramley. Absent and not voting: Chairman Volcker and
Governors Wallich and Partee.

(Signed)
[s e a l]

Jam es M c A fe e ,

A ssistan t Secretary o f the Board.

Dissenting Statem ent o f Governor Gramley

In light of recent improvements in Bank’s overall
condition under Applicant’s management and control,
I would approve this application. Prior to Applicant’s

576

Federal Reserve Bulletin □ July 1981

acquisition of Bank in 1978, Bank was in an unsatisfac­
tory condition. Applicant’s principal borrowed funds
to purchase Bank and to increase Bank’s capital.
Within a two-year period, Bank’s condition has im­
proved significantly: net earnings have risen substan­
tially, and the ratio of classified assets to capital has
fallen. Although Applicant’s projections may be opti­
mistic, they do not seem unrealistically so in light of
Bank’s recent performance. Also, I note that Appli­
cant’s principal has committed to inject his personal
resources into Bank, if it becomes necessary, to
maintain Bank’s capital-to-asset ratio at an adequate
level. Unless Applicant’s projections are widely at
variance with actual developments, moreover, the
amount of his personal resources needed for this
purpose would be small relative to what Applicant’s
principal has already invested in Bank.
This commitment by Applicant’s principal, his dem­
onstrated managerial abilities, and the recent improve­
ment in Bank’s condition are, in my judgment, ade­
quate safeguards to protect Bank. I therefore conclude
that applicant should be given the opportunity to
consummate its proposal.
June 25, 1981

First National Boston Corporation,
Boston, Massachusetts
Order Approving the Acquisition o f a Bank

First National Boston Corporation, Boston, Massa­
chusetts, a bank holding company within the meaning
of the Bank Holding Company Act, has applied for the
Board’s approval under section 3(a)(3) of the Bank
Holding Company Act (12 U.S.C. § 1842(a)(3)) to
acquire 100 percent of the voting shares, less direc­
tors’ qualifying shares, of the successor by merger to
The Haverhill National Bank, Haverhill, Massachu­
setts (“Bank”). The bank into which Bank is to be
merged has no significance except as a means to
facilitate the acquisition of the voting shares of Bank.
Accordingly, the proposed acquisition of shares of the
successor organization is treated herein as the pro­
posed acquisition of shares of Bank.
Notice of the application, affording an opportunity
for interested persons to submit comments and views,
has been given in accordance with section 3(b) of the
Act. The time for filing comments and views has
expired and the Board has considered the application
and all comments received, including those of the
Massachusetts Urban Reinvestment Advisory Group,
Inc., Boston, Massachusetts (“MURAG”); Essexbank, Peabody, Massachusetts; Saugus Bank and



Trust Company, Saugus, Massachusetts; Security Na­
tional Bank, Lynn, Massachusetts; and Northeast
National Bank, Amesbury, Massachusetts (collective­
ly referred to as “Protestant Banks”), in light of the
factors set forth in section 3(c) of the Bank Holding
Company Act. In addition to the numerous objections
to this proposal interposed by MURAG and Protestant
Banks, MURAG has requested that the Board order a
formal hearing on the Community Reinvestment Act
(“CRA”) issues raised by this application.
With regard to MURAG’s request for a hearing,
neither the CRA, nor section 3(b) of the Bank Holding
Company Act requires the Board to hold a formal
hearing concerning an application, except when the
appropriate banking authority makes a timely written
recommendation of denial of an application. In this
case, no such recommendation has been received from
the Comptroller of the Currency and thus, no formal
hearing is required. After considering the record of
this application, the Board has determined that
MURAG’s objections do not present any material
factual differences, but, rather concern the interpreta­
tion or significance that should be accorded to certain
facts in the record, judgments that the Board is
charged by statute with making.1 Inasmuch as all
parties have been afforded the opportunity to present
their arguments in written submissions to the record,
the Board has determined that MURAG’s objections
do not warrant a hearing, and that its request for a
formal hearing should be denied. Accordingly, the
Board will proceed to consider the merits of the
application, including the objections raised by
MURAG, as well as Protestant Banks.
Applicant, the largest commercial banking organiza­
tion in Massachusetts, controls nine domestic banking
subsidiaries with aggregate deposits of $4.2 billion,
representing 22.5 percent of the total commercial bank
deposits in the state.2 Acquisition of Bank, with de­
posits of $39.8 million, would increase Applicant’s
share of commercial bank deposits in Massachusetts
by 0.2 percent. Thus, consummation of the proposal
would not have a significant effect upon concentration
of banking resources in Massachusetts.
Bank, with seven banking offices, is the thirtieth
largest of 73 commercial banking organizations in the
Boston banking market,3and holds 0.3 percent of the

1. In this regard, the Board notes that Protestant Banks, MURAG
and Applicant have had ample opportunity to resolve any material
factual differences concerning issues similar to those raised in this
case during hearings conducted by the Massachusetts Board of Bank
Incorporation (“ Massachusetts Board”) on August 12, September 4,
and September 17, 1980.
2. All banking data are as of June 30, 1980.
3. The Boston banking market, which is approximated by the
Boston Ranally Metro Area, extends over the entire east coast of

Legal Developm ents

commercial bank deposits in the market. With five
subsidiary banks, Applicant is the largest banking
organization in the Boston banking market. Applicant
has total market deposits of $3.8 billion, representing
27.9 percent of the total commercial bank deposits.
Protestant Banks contend that the proposed acquisi­
tion would eliminate substantial existing competition,
and claim that it would substantially increase Appli­
cant’s domination of banking resources in the market.
Inasmuch as Applicant and Bank operate in the
same banking market, consummation of the proposed
transaction will result in the elimination of some
existing competition between the two. In general, the
Board views with great concern any acquisition by
Applicant of another competitor in the Boston banking
market. However, based on the facts of record in this
application, the Board regards Bank as only a marginal
competitor, particularly in view of Bank’s limited
financial and managerial resources, and the circum­
scribed range of services it offers to banking customers
in the Haverhill area. Moreover, while consummation
of the proposal would increase Applicant’s share of
market deposits to 28.2 percent, the Board notes that
Applicant’s share of market deposits has decreased
over the past several years.4 Accordingly, based on
the record in this application, including Bank’s unique
competitive position in the Boston banking market, it
is the Board’s judgment that the overall effects of this
proposal on competition are not so serious as to
warrant denial of the application.
The financial and managerial resources of Applicant
and its subsidiaries are considered satisfactory, and
their future prospects appear favorable. The financial
and managerial resources of Bank are generally satis­
factory, and in the Board’s judgment its future pros­
pects will be enhanced as a result of its acquisition by
Applicant.
In considering the effects of the proposed acquisi­
tion on the convenience and needs of the community
to be served, the Board has considered the record of
Applicant’s banking subsidiaries in meeting the credit
needs of their communities, as provided in the CRA
Massachusetts, except Cape Cod, as well as portions of Southern
New Hampshire. The market includes the major metropolitan areas of
Boston, Brockton, Lowell and Lawrence—Haverhill, and encom­
passes Suffolk County, Essex County, most of Middlesex, Norfolk
and Plymouth Counties, and small segments of Worcester and Bristol
Counties, Massachusetts. Bank is located on the northern fringe of the
market, approximately 40 miles from Boston, the market’s center.
4.
The Board also has evaluated the impact of thrift institutions
within the Boston banking market. Although thrifts are numerous in
the market and in some cases hold large deposits, the Board is of the
opinion that thrift institutions do not compete actively with commer­
cial banks over a sufficient range of financial services to consider them
full competitors of commercial banks. Nevertheless, the relative size
and nature of their operations are such that the Board regards their
presence in the market as a mitigating factor to reduce the effects on
competition that would result from this proposal.




577

(12 U.S.C. § 2901) and Regulation BB (12 C.F.R.
§ 228). In so doing, the Board has examined the
objections of MURAG relating to Applicant’s record
of performance with respect to CRA factors, and
particularly Applicant’s lead bank, First National
Bank of Boston. In approving a recent acquisition by
Applicant, the Board had occasion to consider the
merits of MURAG’s objections, which were essential­
ly identical to those presented in this case. Inasmuch
as MURAG’s objections to this application and to the
Applicant’s prior acquisition were entered at the same
time, and MURAG has not raised any additional issues
or presented any significant new evidence, the Board
finds that MURAG’s specific claims are without merit
for the reasons cited in the Board’s recent order
approving Applicant’s acquisition of The Country
Bank, National Association, Shelburne Falls, Massa­
chusetts.5 Moreover, based on findings of the Comp­
troller of the Currency with respect to First National
Bank of Boston, as well as Applicant’s other subsidiar­
ies, the Board finds Applicant’s record of performance
under CRA to be satisfactory.
With respect to other convenience and needs con­
siderations, the Board notes that Bank’s affiliation
with Applicant will enhance Bank’s otherwise limited
ability to serve the convenience and needs of the
Haverhill community. For example, Applicant will
cause Bank to raise the interest paid on regular pass­
book savings accounts and 90-day notice passbook
accounts to the legal maximum. It will also cause Bank
to provide overdraft protection on NOW accounts. In
addition, Applicant will introduce 90 percent mort­
gages to Bank’s customers and Bank’s residential
mortgage portfolio will be substantially increased.
Finally, affiliation with Applicant will enable Bank to
develop its services to commercial customers, as well
as trust services. In the Board’s view, the benefits to
the public that may be expected from consummation
of the proposed transaction, including banking factors
and convenience and needs considerations, are favor­
able and lend sufficient weight toward approval of the
application to outweigh any adverse effects on compe­
tition that may result.
Accordingly, it is the Board’s judgment that the
proposed transaction would be in the public interest
and that the application should be approved for the
reasons summarized above. This transaction shall not
be made before the thirtieth calendar day following the
effective date of this Order, or later than three months
from the effective date of this Order, unless such
period is extended for good cause by the Board, or the
Federal Reserve Bank of Boston, pursuant to delegat­
ed authority.
5. 67 F ederal R eserve B ull et in 253 (1981).

578

Federal Reserve Bulletin □ July 1981

By order of the Board of Governors, effective
June 4, 1981.
Voting for this action: Vice Chairman Schultz and Gover­
nors Partee and Gramley. Voting against this action: Gover­
nors Teeters and Rice. Absent and not voting: Chairman
Volcker and Governor Wallich.

(Signed)
[s e a l]

Jam es M c A fe e ,

tiate Haverhill National from numerous other small
banks in the Boston market. Approval, therefore, will
set a precedent enabling Applicant to acquire a large
number of the remaining healthy independent banks
with market shares less than that of Haverhill
National.
In light of these considerations, we would deny this
application.

A ssistan t Secretary o f the Board.

June 4, 1981

Dissenting Statem ent o f Governors Teeters and Rice

We would deny the application by First National
Boston Corporation to acquire The Haverhill National
Bank. We believe that consummation of the proposal
would have substantially adverse competitive effects,
entrenching the position of a banking institution that
already dominates both the state and the local banking
market, eliminating a viable independent competitor,
and setting the stage for additional acquisitions by
Applicant within the Boston banking market. More­
over, in our judgment, the record of this proposal does
not demonstrate that the increased benefits to the
convenience and needs of the community to be served
will be sufficient to offset its overall adverse competi­
tive effects.
We are concerned that the majority’s decision may
encourage Applicant, as well as other large bank
holding companies in Massachusetts and elsewhere, to
eschew reasonable branching alternatives in the belief
that the Board will approve less competitive horizontal
acquisitions. In this case, we note that Applicant is not
prohibited by law from branching into the Haverhill
area, and we believe that it would be preferable for
Applicant to enter by that means.
Applicant is a dominant banking institution in the
Boston banking market, where it controls approxi­
mately 28 percent of the commercial bank deposits,
twice that of its largest competitor. Even if thrift
deposits were included with those of commercial
banks, Applicant’s share of total deposits would still
be twice that of its largest competitor. Because of its
dominant position, Applicant’s acquisitions within the
market historically have been restricted either to se­
verely financially troubled institutions, or to banks
located outside its branching area. Allowing Applicant
to acquire a healthy bank within its branching area
constitutes a radical departure from established poli­
cies. Such a departure could spark a new trend in
Applicant’s expansion strategy, since the mitigating
factors in this case that is, the relatively small size of
Bank, its location on the fringe of the Boston market,
its lackluster performance, and the presence of numer­
ous thrifts in the market, are not sufficient to differen­



San Saba National Corporation,
San Saba, Texas
Order Denying Formation o f a Bank Holding
Company

San Saba National Corporation, San Saba, Texas, has
applied for the Board’s approval under section 3(a)(1)
of the Bank Holding Company Act (12 U.S.C.
§ 1842(a)(1)) of formation of a bank holding company
by acquiring at least 80 percent of the voting shares of
The San Saba National Bank, San Saba, Texas.
Notice of the application, affording an opportunity
for interested persons to submit comments and views,
has been given in accordance with section 3(b) of the
Act. The time for filing comments and views has
expired, and the Board has considered the application
and all comments received in light of the factors set
forth in section 3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant, a nonoperating corporation with no sub­
sidiaries, was organized for the purpose of becoming a
bank holding company by acquiring Bank, which holds
deposits of $15.6 million.1Upon acquisition of Bank,
Applicant would control the 674th largest bank in
Texas and would hold approximately 0.02 percent of
the total deposits in commercial banks in the state.
Bank is the smaller of two banking organizations in
the relevant market and holds 49.2 percent of the total
deposits in commercial banks in the market.2 It ap­
pears from the facts of record that consummation of
the proposal would not result in any adverse effects
upon competition, or increase the concentration of
banking resources in any relevant area. Accordingly,
the Board concludes that competitive considerations
are consistent with approval of the application.
The Board has indicated on previous occasions that
a holding company should serve as a source of finan­
cial and managerial strength to its subsidiary banks,
and that the Board would closely examine the condi1. All banking data as of December 31, 1979.
2. The relevant banking market is the San Saba banking market,
which is approximated by San Saba County, Texas.

Legal D evelopm ents

tion of an applicant in each case with this consider­
ation in mind. In this case, the Board concludes that
the record presents adverse considerations that war­
rant denial of the proposal to form a bank holding
coippany.
With regard to financial considerations, the Board
notes that Applicant would incur a sizable debt in
connection with this proposal. Applicant proposes to
service this debt over a 12-year period through divi­
dends to be declared by Bank, and tax savings to be
derived from filing consolidated tax returns. Applicant
has also proposed a capital injection for Bank as a part
of its acquisition of Bank. Applicant anticipates that
this capital injection, its projected improvements in
Bank’s assets, asset growth and earnings, and certain
management and policy changes would allow Appli­
cant to service its acquisition debt while maintaining
an adequate capital level in Bank. However, in light of
Bank’s historical performance and other facts of re­
cord, Bank’s earnings and growth projections appear
optimistic. It is the Board’s view that Bank is unlikely
to have sufficient actual earnings to enable Applicant
to service its debt while maintaining adequate capital
in Bank, as well as affording Applicant the flexibility to
meet any unforeseen problems that might arise at
Bank. Accordingly, the Board is of the opinion that the
considerations relating to financial and managerial
resources and future prospects lend weight toward
denial of the application.
No significant changes in the services offered by
Bank are expected to follow from consummation of
the proposed transaction. Consequently, convenience
and needs factors are consistent with, but lend no
weight toward, approval of this application.
On the basis of the circumstances concerning this
application, the Board concludes that the banking
considerations involved in this proposal present ad­
verse factors bearing upon the financial and manageri­
al resources and future prospects of Applicant and
Bank. Such adverse factors are not outweighed by any
procompetitive effects, or by benefits that would result
in better serving the convenience and needs of the
community. Accordingly, it is the Board’s judgment
that approval of the application would not be in the
public interest and the application should be denied.
On the basis of the facts of record, the application is
denied for the reasons summarized above.
By order of the Board of Governors, effective
June 30, 1981.
Voting for this action: Chairman Volcker and Governors
Schultz, Teeters, Rice, and Gramley. Absent and not voting:
Governors Wallich and Partee.

[seal ]



(Signed) W ill ia m W . W il e s ,
Secretary of the Board.

579

Order Under Section 4 o f Bank Holding
Company A ct
First Maryland Bancorp.,
Baltimore, Maryland
Order Approving Formation o f First M aryland
Cheque Corporation

First Maryland Bancorp., Baltimore, Maryland, a
bank holding company within the meaning of the Bank
Holding Company Act (“Act”), has applied for the
Board’s approval, under section 4(c)(8) of the Act
(12 U.S.C. § 1843(c)(8)), and section 225.4(b)(2) of the
Board’s Regulation Y (12 C.F.R. § 225.4(b)(2)), to
engage through its de novo subsidiary, First Maryland
Cheque Corporation (“Corporation”), in the issuance
and sale of travelers checks.
T h e r e ta il s a le o f t r a v e le r s c h e c k s a s p r o p o s e d b y
A p p lic a n t is in c lu d e d o n th e B o a r d ’s lis t in R e g u la t io n

Y o f p e r m is s ib le a c t iv it ie s f o r b a n k h o ld in g c o m p a n ie s
(12 C .F .R . § 225.4(a)(13)). W h ile t h e B o a r d h a s n o t
a m e n d e d its R e g u la t io n Y t o in c lu d e t h e is s u a n c e o f
tr a v e le r s c h e c k s a s a p e r m is s ib le a c t i v i t y ,1in c o n n e c ­
tio n w ith s ix e a r lie r a p p lic a tio n s t h e B o a r d d e t e r m in e d
b y o r d e r th a t t h e a c t iv it y o f is s u in g t r a v e le r s c h e c k s is
c l o s e ly r e la te d t o b a n k in g a n d w o u ld b e in p u b lic

Seafirst Corporation , 67 F e d e r a l R e s e r v e
517 (1981); The Chase M anhattan Corpora­
tion, 66 F e d e r a l R e s e r v e B u l l e t i n 983 (1980); First
Chicago Corporation , 65 F e d e r a l R e s e r v e B u l l e ­
t i n 937 (1979); Citicorp , 65 F e d e r a l R e s e r v e B u l ­
l e t i n 666 (1979); BankAmerica Corporation , 59 F e d ­
e r a l R e s e r v e B u l l e t i n 544 (1973); a n d Republic o f
Texas Corporation , 62 F e d e r a l R e s e r v e B u l l e t i n
in te r e s t.

B u lle tin

630 (1976).

A s n o t e d in t h e s e e a r lie r B o a r d d e c i s io n s ,

b a n k s h a v e , in f a c t , e n g a g e d in t h e is s u a n c e o f t r a v e l­
e r s c h e c k s , a n d g e n e r a lly h a v e e n g a g e d in a c t iv it ie s
th a t a re o p e r a t io n a lly a n d f u n c t io n a lly s im ila r t o th e
p r o p o s e d a c t iv it y . A c c o r d in g ly , t h e B o a r d h a s d e t e r ­
m in e d th a t is s u in g t r a v e le r s c h e c k s a s A p p lic a n t p r o ­
p o s e s is c le a r ly r e la t e d t o b a n k in g .2

Notice of application, affording interested persons
an opportunity to submit comments and views on the
public interest factors, has been duly published (46
Federal Register 26,177 (1981)). The time for filing
comments and views has expired, and the Board has
considered the application and all comments received

1. The Board has published for comment in the Federal Register a
proposal to add the issuance of travelers checks to the list of
permissible activities for bank holding companies contained in Regula­
tion Y.
2. See National Courier Association v. Board of Governors o f the
Federal Reserve System, 516 F.2d 1229 (D.C. Cir. 1975).

580

Federal Reserve Bulletin □ July 1981

in light of the public interest factors set forth in section
4(c)(8) of the Act.
Applicant is a one-bank holding company by virtue
of its control of First National Bank of Maryland,
Baltimore, Maryland (deposits of $1.4 billion), the 3rd
largest banking organization in Maryland, controlling
11.3 percent of total deposits in commercial banks in
that state.3 Applicant also engages in mortgage bank­
ing, commercial lending and leasing, construction fi­
nance activities and credit related insurance activities.
Applicant proposes to issue and sell travelers check
through the Visa Travelers Cheque Program. Under
the program, Applicant’s name and the Visa symbol
would appear on each check, and customers would
have access to the international service network estab­
lished under the Visa program. Applicant proposes to
sell the checks through agents, including its
subsidiaries.
The travelers check industry is highly concentrated,
with the largest issuer, American Express, accounting
for 50 percent of the market. The Board has previously
determined, in view of the limited number of competi­
tors currently servicing this industry, that it would be
in the public interest for bank holding companies
having the capability, to engage in the issuance of
travelers checks. Applicant’s entry into this industry
should serve to enhance competition in providing this
service. Accordingly, it is the Board’s view that ap­
proval of this application would produce benefits to
the public and would be in the public interest. Further­
more, there is no evidence in the record to indicate
that Applicant’s engaging in this activity would lead to
any undue concentration of resources, unfair competi­
tion, conflicts of interests, unsound banking practices,
or other adverse effects.
Based upon the foregoing and other considerations
reflected in the record, the Board has determined that
the balance of the public interest factors the Board is
required to consider under section 4(c)(8) is favorable.
Accordingly, the application is hereby approved. This
determination is subject to the conditions set forth in
section 225.4(c) of Regulation Y, and to the Board’s
authority to require such modification or termination
of the activities of a holding company or any of its
subsidiaries as the Board finds necessary to assure
compliance with the provisions and purposes of the
Act, and the Board’s regulations and orders issued
thereunder, or to prevent evasion thereof.
The transaction shall be made not later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Richmond.

3. All banking data are as of June 30, 1980.




By order of the Board of Governors, effective
June 23, 1981.
Voting for this action: Vice Chairman Schultz and Gover­
nors Teeters, Rice, and Gramley. Absent and not voting:
Chairman Volcker and Governors Wallich and Partee.

(Signed)
[s e a l]

Jam es M c A fe e ,

A ssistan t Secretary o f the Board.

Orders Issued Under Section 2 o f Bank Holding
Company A ct
Exchange Bancorporation,
Tampa, Florida
Order Granting D etermination Under the Bank
Holding Company A ct

Exchange Bancorporation, Tampa, Florida (“Bancor­
poration”), a bank holding company within the mean­
ing of the Bank Holding Company Act of 1956, as
amended, (12 U.S.C. § 1841 et seq.) (the “Act”), has
requested a determination, pursuant to the provisions
of section 2(g)(3) of the Act, that with respect to the
sale by Bancorporation of the assets of Exchange
Travel Service, Inc., Tampa, Florida (“Travel Ser­
vice”) to Pepsi-Cola Bottling Company of Tampa
(“Pepsi Company”), Bancorporation is not in fact
capable of controlling Pepsi Company or Travel Ser­
vice, notwithstanding the fact that Pepsi Company and
a subsidiary of Bancorporation have a common
director.
Under the provisions of section 2(g)(3) of the Act,
shares transferred after January 1, 1966, by any bank
holding company to a transferree that has one or more
officers, directors, trustees, or beneficiaries in com­
mon with or subject to control by the transferor are
deemed to be indirectly owned or controlled by the
transferor unless the Board, after opportunity for
hearing, determines that the transferor is not in fact
capable of controlling the transferee.
No request for a hearing was made by Bancorpora­
tion. Bancorporation has submitted to the Board evi­
dence to show that it is not in fact capable of control­
ling Travel Service or Pepsi Company, and the Board
has received no contradictory evidence. It is hereby
determined that Bancorporation is not in fact capable
of controlling Travel Service or Pepsi Company. This
determination is based upon the evidence of record in
this matter including the following facts.
The sale of the assets of Travel Service to Pepsi
Company was the result of arm’s-length negotiations
and competitive bidding. Pepsi Company paid cash for

L egal D evelopm ents

the assets of Travel Service and is not otherwise
indebted to Bancorporation. Although Pepsi Company
has borrowed funds from Bancorporation from time to
time in the past, and may do so in the future, Pepsi
Company has substantial financial resources, and has
repaid all previous indebtedness in a timely manner.
Although Pepsi Company maintains a deposit relation­
ship with a Bancorporation subsidiary, Pepsi Compa­
ny’s deposits represent less than one half of one
percent of Bancorporation’s total deposits.
The individual who is a director of Bancorporation
and Pepsi-Company is not involved in the day-to-day
management of the operations of Bancorporation.
Although this individual is indebted to Bancorpora­
tion, such indebtedness is current and is small in
relation to his net worth. Furthermore, there is no
indication that this individual would serve as Bancor­
poration’s representative with regard to Pepsi Compa­
ny or Travel Service. Accordingly, inasmuch as this
individual has no significant share ownership in Ban­
corporation, the continued service by this individual
as an independent outside director on the board of
Bancorporation will not render the divestiture ineffec­
tive.
In view of the facts of record, it is determined that
Bancorporation is not capable of controlling Travel
Service or Pepsi Company. Accordingly, it is ordered
that the request of Bancorporation for a determination
pursuant to section 2(g)(3) is granted. This determina­
tion is based on the representations made to the Board
by Bancorporation. In the event that the Board should
hereafter determine that facts material to this determi­
nation are otherwise than as represented, or that
Bancorporation has failed to disclose to the Board
other material facts, this determ ination may be re­

voked, and any change in the facts and circumstances
relied upon by the Board in making this determination
could result in the Board reconsidering the determina­
tion made herein.
By order of the Board of Governors, acting through
its Acting General Counsel, pursuant to delegated
authority (12 C.F.R. § 265.2(b)(1)), effective June 17,
1981.
(Signed)
[s e a l]

Jam es M c A fe e ,

A ssistan t Secretary o f the Board.

First Oklahoma Bancorporation, Inc.,
Oklahoma City, Oklahoma
Order Granting a D eterm ination Under the Bank
Holding Company A c t

First Oklahoma Bancorporation, Inc., Oklahoma City,
Oklahoma (“FOBC”), a bank holding company within



581

the meaning of the Bank Holding Company Act of
1956, as amended, (12 U.S.C. § 1841 et seq.) (“Act”),
has requested a determination under section 2(g)(3) of
the Act (12 U.S.C. § 1841(g)(3)) that FOBC is not in
fact capable of controlling the divested assets of three
subsidiaries that had been engaged primarily in real
estate investment and development, notwithstanding
the indebtedness on the part of the purchasers of some
of these assets to FOBC, and notwithstanding the fact
that two purchasers are offices and directors of FOBC.
Under the provisions of section 2(g)(3) of the Act,
shares1transferred after January 1, 1966, by a bank
holding company to a transferee that is indebted to the
transferor or has one or more officers, directors,
trustees, or beneficiaries in common with or subject to
control by the transferor, are deemed to be indirectly
owned or controlled by the transferor unless the
Board, after opportunity for a hearing, determines that
the transferor is not in fact capable of controlling the
transferee.
The three subsidiaries involved in this determination
are First Oklahoma Realty Investment Corporation
(“FORIC”), L&R Enterprises Inc. (“L&R”), and
Southwest Property Management Corporation
(“Southwest”). In the early 1970s each of these sub­
sidiaries held numerous parcels of real estate and
certain other assets. The Board ordered the divestiture
of this real estate and other assets in 1974. This
property was divested over a seven year period, in
approximately 100 unrelated transactions involving a
variety of purchasers. Many of these transactions did
not raise the presumption of section 2(g)(3), because
neither indebtedness nor management interlocks were
involved.2
With a few exceptions, the 31 transactions covered
by this order did involve indebtedness or interlocks.
The property divested in these 31 transactions is listed
in Appendix A. Inasmuch as a number of these 31
transactions involved a transfer of shares or a separate
business activity, the presumption of section 2(g)(3) is
applicable to those transactions. With respect to the
remainder of the transactions covered by this order,
they are not technically within the ambit of section
2(g)(3) because they involved undeveloped land. How­
ever, where assets required to be disposed of, either
under one of the provisions of the Bank Holding

1. For purposes of section 2(g)(3), the Board deems the transfer of
all or substantially all of the assets of a company, or the disposition
of a separate activity of a company, to involve a transfer of shares,
(12 C.F.R. § 225.139(c)(3)).
2. As is explained below, a few of the 31 transactions covered by
this order also did not involve indebtedness or management inter­
locks. The section 2(g)(3) presumption thus is not applicable to these
transactions, and there is no other evidence that these transactions do
not involve an adequate divestiture.

582

Federal Reserve Bulletin □ July 1981

Company Act or by specific Board order, are trans­
ferred, and one or more of the relationships described
in section 2(g)(3) of the Act exists, the transferring
company must bear a burden similar to that found in
the usual section 2(g)(3) context. That is, the transfer­
ring company must make a clear and convincing
demonstration that the divestiture is complete and was
not made in an effort to evade the Act, and that control
of the divested asset is not likely to be reacquired.
Thus, for purposes of simplicity, all of the 31 transac­
tions are discussed in this order.
FOBC has not requested a hearing regarding the
adequacy of these divestitures. Instead, FOBC has
submitted evidence to the Board to show that it is not
in fact capable of controlling the divested property, or
its respective purchasers, and the Board has received
no contradictory evidence.
On the basis of the facts of record, it is hereby
determined that FOBC is not in fact capable of con­
trolling the assets sold by FORIC, L&R and South­
west, or the purchasers of those assets. Each of the 31
transactions appear to have been negotiated at armslength and there is no evidence that any of the trans­
fers were designed to evade the requirements of the
Board’s 1974 order. Moreover, FOBC has undertaken
that it will not attempt to exercise control over the
assets sold or the purchasers of such assets.
Transactions 1 through 11 (see Appendix A) either
did not involve indebtedness, or any indebtedness has
been paid in full. Moreover, with respect to each of
these transactions, no interlocking relationships exist
between FOBC and its subsidiaries, on one hand, and
the transferred property and its purchasers, on the
other. In transactions 12 through 28, there are also no
interlocking relationships. However, in these transac­
tions either the purchaser or the transferred property
itself is indebted to FOBC. From the record, it appears
that in each of these transactions the debt is current,
and regular payments on the debt have been made for
at least one year. Moreover, in each case, either the
purchaser, or a party that controls the purchaser and
has guaranteed the debt, has net worth equal to or
greater than the debt. With respect to transaction 29,
while the net worth of the purchaser is not significant
in relation to the amount of indebtedness, the debt is
current and regular payments have been made for
more than two years. Moreover, income derived from
the transferred property appears ample to service this
debt, and no management interlocks are associated
with transaction 29. The terms governing the debt
relationships in transactions 11 through 29 are those
reasonably required in accordance with sound and
accepted banking practices. Although many of these
debt relationships provide a security interest in the
divested property to FOBC, FOBC has committed



that in the event it should repossess any of the
divested property, it will promptly dispose of such
property in a manner that will not give rise to a section
2(g)(3) presumption.3
There is no debt associated with transaction 30, but
the two purchasers are both officers and directors of
FOBC. A bank holding company that transfers proper­
ty to an officer or an “inside” director must carry a
particularly heavy burden to overcome the presump­
tion of section 2(g)(3). FOBC has provided evidence to
demonstrate that it made a good faith attempt to sell
this property to an unrelated party, and that it negoti­
ated a sale to officer/directors only after these attempts
failed. These officer/directors paid the full asking price
in cash. Finally, in light of the nature of the property
transferred, there is no basis for believing that its
transfer by FOBC to officer/directors was intended to
perpetuate FOBC’s control of such property.
The loan associated with transaction 31 is in default.
However, FOBC has committed that neither it nor any
of its officers or directors will bid on the property at
the foreclosure sale that will soon take place, and this
sale will thus extinguish the section 2(g)(3) presump­
tion, since it will eliminate FOBC’s security interest in
the property, and FOBC will not provide financing to
the new purchaser.
Accordingly, it is ordered that the request of FOBC
for a determination pursuant to section 2(g)(3) is
granted. This determination is based on the represen­
tations made to the Board by FOBC. In the event that
the Board should hereafter determine that facts mate­
rial to this determination are otherwise than represent­
ed, or that FOBC has failed to disclose to the Board
other material facts, this determination may be re­
voked, and any change in the facts and circumstances
relied upon by the Board in making this determination
could result in the Board reconsidering the determina­
tion made herein.
By order of the Board of Governors, acting through
its Acting General Counsel, pursuant to delegated
authority (12 C.F.R. § 265.2(b)(1)), effective June 9,
1981.
(Signed)
[s e a l]

Jam es M c A fe e ,

A ssistan t Secretary o f the Board.

3.
FOBC also has a right to receive 30 percent of any profit derived
from resale of the property involved in transaction 28. The debt
associated with this transaction bears interest at the rate of 6 percent
annually. This below market rate reflects the relatively undesirable
nature of the property transferred. FOBC’s right to share in profits is
intended to compensate FOBC for the low interest rate by effectively
allowing FOBC to realize a more reasonable rate of interest if
conditions change. However, FOBC has retained no right to control
or influence the factors that would determine profitability, such as
operating expenses and capital improvements. FOBC also has no right
to disapprove a sale of the property, regardless of the profit (or lack
thereof) associated with the sale.

Legal D evelopm ents

583

Order Granting D etermination Under the Bank
Holding Company A c t

West Financial Management Corporation, Lincoln,
Nebraska (“Mid-West”), in connection with the trans­
fer by Company of the assets and liabilities of the
insurance agency business of Company (“Havelock
Insurance”) to Mid-West, notwithstanding the fact
that Mr. Roger L. Anderson is an officer and director
of both Company and Mid-West.
Under section 2(g)(3) of the Act, shares1transferred
after January 1, 1966, by any bank holding company to
a transferee that is indebted to the transferor, or has
one or more officers, directors, trustees, or beneficia­
ries in common with or subject to control by the
transferor, are deemed to be indirectly owned or
controlled by the transferor unless the Board, after
opportunity for hearing, determines that the transferor
is not in fact capable of controlling the transferee.
Company made no request for a hearing. Company has
submitted to the Board evidence to support its conten­
tion that it is not in fact capable of controlling MidWest, and the Board has received no contradictory
evidence.
It is hereby determined that Company is not in fact
capable of controlling Mid-West. This determination is
based upon the evidence of record in this matter,
including the following facts. Company is a small
closely-held corporation, 85 percent of the shares of
which are owned by Mr. Roger L. Anderson, or
members of his immediate family. Mr. Anderson owns
100 percent of the shares of Mid-West. Mr. Anderson
is also the President and Chairman of the Board of
Directors for both Company and Mid-West. Company
divested its interest in Havelock Insurance by trans­
ferring Havelock Insurance to Mid-West on Decem­
ber 31, 1980, and Company presently has no interest in
Havelock Insurance. Moreover, inasmuch as Mr. An­
derson is a director, officer, and principal shareholder
of both Company and Mid-West, the divestiture of
Havelock Insurance does not appear to have been a
means for perpetuating Company’s control of Have­
lock Insurance. On the basis of the above and other
facts of record, it is concluded that control of Compa­
ny resides with Mr. Anderson individually, and that
Company does not control and is not in fact capable of
controlling Mid-West as transferee of Havelock Insur­
ance.
Accordingly, it is ordered that the request of Com­
pany for a determination pursuant to section 2(g)(3) be

Havelock Investment Company, Lincoln, Nebraska
(“Company”), a bank holding company within the
meaning of section 2(a) of the Bank Holding Company
Act of 1956, as amended (12 U.S.C.§ 1841(a), the
(“Act”), has requested a determination under sec­
tion 2(g)(3) of the Act (12 U.S.C. § 1841(g)(3)), that
Company is not in fact capable of controlling Mid-

1. Although section 2(g)(3) refers to transfers of “ shares,” the
Board has previously taken the position that a transfer of all, or
substantially all of the assets of a company, or the transfer of such a
significant volume of assets that the transfer may in effect constitute
the disposition of a separate activity of a company, is deemed to
involve a transfer of “ shares” of that company. (12 C.F.R.
§ 225.139(c)(3)).

Appendix A

The 31 transactions covered by this Order are those in
which the following assets of FORIC, L&R, and
Southwest were divested:
1. Southwest Property Management, Corporation
(parent company only)
2. Cross winds Land Company
3. Crosswinds Inn Joint Venture
4. Turtle Creek Joint Venture
5. Capital Joint Venture
6. Colonial Estates, McGowan and Spanish Lands
7. Enterprise Building and North Place Land
8. Skyline Development, Inc.
9. Forms business of First Oklahoma Financial
Services
10. Lakeview Terrace Land
11. Chantilly Heights Land
12. Henderson Properties, Inc.
13. Chisholm Trail Joint Venture
14. Hungry Peddler Joint Venture
15. Mall Development Company
16. Val Gene’s Addition Joint Venture
17. Greenwood Plaza Shopping Center
18. Town and Country Shopping Center
19. Northwest Plaza Shopping Center
20. Evans Furniture Warehouse
21. Norman Land
22. Founders Bank and Trust Company Stock
(transferred by FOBC)
23. Fisher Land
24. Harris Land
25. Ken-Del Ltd.
26. North Creek Land
27. Royal Oaks Land
28. Miscellaneous assets of L&R sold to National
Properties, Inc.
29. Rainbow Travel Service (transferred by FOBC)
30. Sirloin Stockade
31. Indian Land

Havelock Investment Company,
Lincoln, Nebraska




584

Federal Reserve Bulletin □ July 1981

granted. This determination is based on representa­
tions made to the Board by Company and Mid-West.
In the event that the Board should hereafter determine
that facts material to this determination are otherwise
than as represented, or that Company or Mid-West has
failed to disclose to the Board other material facts, this
determination may be revoked, and any change in the
facts and circumstances relied upon by the Board in
making this determination would result in the Board
reconsidering the determination made herein.
By order of the Board of Governors, acting through
its Acting General Counsel, pursuant to delegated
authority (12 C.F.R. § 265.2(b)(1)), effective June 22,
1981.
(Signed)
[s e a l]

Jam es M c A fe e ,

A ssistan t Secretary o f the Board.

Investment Corporation o f America, Inc.,
Minneapolis, Minnesota
Order Granting Determination Under the Bank
Holding Company A ct

Investment Corporation of America, Inc., Minneapo­
lis, Minnesota (“Invesco”), a bank holding company
within the meaning of section 2(a) of the Bank Holding
Company Act of 1956, as amended, 12 U.S.C. § 1841
et seq., (the “Act”), by virtue of its ownership and
control of River Forest State Bank, River Forest,
Illinois, has requested a determination pursuant to the
provisions of section 2(g)(3) of the Act (12 U.S.C.
§ 1841(g)(3)) that Invesco is not in fact capable of
controlling certain individuals (“Transferees”) to
whom it transferred its interest in S&M Company,
Minneapolis, Minnesota (“S&M”), or S&M itself,
notwithstanding the fact that Transferees are officers
and/or directors of Invesco.
Pursuant to the provisions of section 2(g)(3) of the
Act, shares transferred after January 1, 1966, by any
bank holding company to a transferee that is indebted
to the transferor or has one or more officers, directors,
trustees, or beneficiaries in common with or subject to
the control by the transferor are deemed to be indirect­
ly owned or controlled by the transferor unless the
Board, after opportunity for hearing, determines that
the transferor is not in fact capable of controlling the
transferee.1
1. In its interpretation of this provision, the Board stated that the
presumption arises not only where the transferee or transferred
company has an officer, director, or trustee “in common with” the
transferor, but where the transferee himself holds such a position with
the transferor. (12 C.F.R. § 225.139). Since Invesco’s officers and
directors will receive in the aggregate more than 25 percent of the




It is hereby determined that Invesco is not, in fact,
capable of controlling Transferees or S&M. This de­
termination is based on the evidence of record in this
matter, including the following facts. Invesco divested
its interest in S&M by distributing the shares of S&M
on a pro rata basis to Invesco’s shareholders, some of
whom are officers and directors of Invesco. Invesco
now holds no interest in S&M, and all officer/director
interlocks between Invesco and S&M have been ter­
minated. Furthermore, Invesco has terminated all
business relationships between itself and S&M. The
fact that, after a spin off, the officers and directors of a
bank holding company own shares of a divested com­
pany is the predictable result of a pro rata distribution,
and that distribution does not appear to have been a
means of perpetuating Invesco’s control over S&M.
Moreover, Invesco’s board of directors has adopted a
resolution that it cannot control and will not attempt to
control S&M or Transferees.
Accordingly, it is ordered that the request of
Invesco for a determination pursuant to section 2(g)(3)
be and hereby is granted. This determination is based
upon the representations made to the Board by
Invesco. In the event the Board should hereafter
determine that facts material to this determination are
otherwise than as represented, or that Invesco has
failed to disclose to the Board other material facts, this
determination may be revoked, and any change in the
facts or circumstances relied upon by the Board in
making this determination could result in the Board
reconsidering the determination made herein.
By order of the Board of Governors, acting through
its Acting General Counsel, pursuant to delegated
authority (12 C.F.R. § 265.2(b)(1)), effective June 8,
1981.
(Signed)
[s e a l]

Jam es M c A fe e ,

A ssistan t Secretary o f the Board.

The Lewistown Company,
Lewistown, Illinois
Order Granting a D eterm ination Under the Bank
Holding Company A ct

The Lewistown Company (“ Company”), Lewistown,
Illinois, a bank holding company within the meaning of
the Bank Holding Company Act (12 U.S.C. § 1841 et
seq.) (the “Act”), has requested a determination un­
der section 2(g)(3) of the Act (12 U.S.C. § 1841(g)(3))
that Company is not in fact capable of controlling
stock of S&M, Invesco is presumed to continue to control Transferees
and S&M.

Legal D evelopm ents

Warren Potter or Spoon River Insurance Center, Inc.
(“Insurance Center”), Lewistown, Illinois, notwith­
standing the fact that Mr. Potter is indebted to the
Lewistown Bank, Lewistown, Illinois, a subsidiary of
Company, as a result of his purchase of shares of
Insurance Center formerly owned by Company.1
Under the provisions of section 2(g)(3) of the Act,
shares transferred after January 1, 1966, by any bank
holding company to a transferee that is indebted to the
transferor, are deemed to be indirectly owned or
controlled by the transferor unless the Board, after
opportunity for hearing, determines that the transferor
is not in fact capable of controlling the transferee. No
request for a hearing was made by Company. Instead,
Company has submitted evidence to the Board to
support its contention that it is not in fact capable of
controlling Mr. Potter, and the Board has received no
contradictory evidence.
It is hereby determined that Company is not in fact
capable of controlling Mr. Potter. This determination
is based on the evidence of record in this matter,
including the following facts:
The sale of the shares of Insurance Center was
effected through arm’s-length negotiations between
Company’s principal and Mr. Potter, and the terms
governing the debt relationship between Bank and
Mr. Potter consist of provisions reasonably required
for the protection of Bank’s interests as a creditor.
Although Mr. Potter is indebted to Company for a
substantial portion of the purchase price of Insurance
Center, it appears that his personal financial resources
are substantial enough to support the conclusion that
Company is not in fact capable of controlling
Mr. Potter or Insurance Center by reason of that
indebtedness. In addition, Company has stated that
should it reacquire the shares of Insurance Center as a
result of Mr. Potter’s default, it will advise the Federal
Reserve System and promptly dispose of such shares.
Furthermore, there are no employee, officer, or direc­
tor interlocks between Company, including its subsid­
iary bank, and Insurance Center. Finally, Company’s
board of directors has adopted a resolution that Com­
pany does not, and will not attempt to, exercise
control over Insurance Center or Mr. Potter.

1. Although the shares of Insurance Center were sold to Mr. Potter
by Company’s principal shareholder-director and not Company, the
shares remain attributable to Company because of the circumstances
of the original transfer of the shares to Company’s principal. In 1978,
Company sold its shares of Insurance Center to its principal shareholder-director. This sale was not an effective divestiture, since
Company was unable to rebut to presumption of continued control,
under section 2(g)(3) of the Act, that arose by virtue of the interlocking
director and debt relationship between Company and its principal.
Thus, the subsequent sale of Insurance Center to Mr. Potter, and his
resulting indebtedness to Lewistown Bank, subjects the sale to the
presumption of continued control created by section 2(g)(3) of the Act.




585

Accordingly, it is ordered that the request of Com­
pany for a determination pursuant to section 2(g)(3)
should be and hereby is granted. This determination is
based on representations made to the Board by Com­
pany and Mr. Potter. In the event that the Board
should hereafter determine that facts material to this
determination are otherwise than as represented, or
that Company or Mr. Potter has failed to disclose to
the Board other material facts, this determination may
be revoked, and any change in the facts and circum­
stances relied upon by the Board in making this
determination could result in the Board reconsidering
the determination made herein.
By order of the Board of Governors, acting through
its Acting General Counsel, pursuant to delegated
authority (12 C.F.R. § 265.2(b)(1)), effective June 23,
1981.

[s e a l]

(Signed) J a m e s M c A f e e ,
Assistant Secretary of the Board.

Noble Bancshares, Inc.,
Noble, Oklahoma
Order Granting Determination Under the Bank
Holding Company Act
Noble Bancshares, Inc. (formerly Noble Insurance
Agency, Inc.), Noble, Oklahoma (“Noble”), a bank
holding company within the meaning of section 2(a) of
the Bank Holding Company Act of 1956, as amended
(12 U.S.C. § 1841 et seq.) (“Act”), has requested a
determination pursuant to section 2(g)(3) of the Act
that, with respect to the sale for cash by Noble of all of
its insurance agency business to Noble Insurance
Agency, Inc., Noble, Oklahoma (“Agency”), that
Noble is not in fact capable of controlling Kenneth L.
King, Elizabeth King, Paul D. King (“Kings”) or
Agency, notwithstanding the fact that the Kings are
officers and directors of both Noble and Agency.
Under the provisions of section 2(g)(3) of the Act,
shares transferred after January 1, 1966, by a bank
holding company to a transferee that is indebted to the
transferor or has one or more officers, directors,
trustees, or beneficiaries in common with or subject to
control by the transferor, are deemed to be indirectly
owned or controlled by the transferor unless the
Board, after opportunity for hearing, determines that
the transferor is not in fact capable of controlling the
transferee. No request for a hearing was made by
Noble. Instead, Noble has submitted evidence to the
Board to support its contention that it is incapable of
controlling the Kings or Agency either directly or

586

Federal Reserve Bulletin □ July 1981

indirectly. The Board has received no contradictory
evidence.
It is hereby determined that Noble is not in fact
capable of controlling the Kings or Agency. This
determination is based upon the evidence in the mat­
ter, including the following facts. Noble is a closelyheld corporation. Kenneth L. King owns 100 percent
of Noble. Kenneth L. King and Elizabeth King each
own 50 percent of Agency. The Kings are the only
officers, directors, and shareholders of both Agency
and Noble. The divestiture does not appear to have
been a means of perpetuating Noble’s control over
Agency. On the basis of the above and other facts of
record, the Board concludes that control of Noble and
Agency resides with the Kings as individuals, and that
Noble does not control and is not in fact capable of
controlling the Kings in their capacities as sharehold­
ers, directors and officers of Agency.
Accordingly, it is ordered that the request of Noble
for a determination pursuant to section 2(g)(3) is
granted. This determination is based on the represen­
tations made to the Board by Noble and the Kings. In
the event the Board should hereafter determine that
facts material to this determination are otherwise than
as represented, or that Noble, or the Kings have failed
to disclose to the Board other material facts, this
determination may be revoked, and any change in the
facts and circumstances relied upon by the Board in
making this determination could result in the Board
reconsidering the determination made herein.
By order of the Board of Governors, acting through
its Acting General Counsel, pursuant to delegated
authority (12 C.F.R. § 265.2(b)(1)), effective June 17,
1981.
(Signed)
[s e a l]

Jam es M c A fe e ,

A ssistan t Secretary o f the Board.

Walter E. Heller International Corporation,
Chicago, Illinois
Order Granting D etermination Under the Bank
Holding Company A ct

Walter E. Heller International Corporation (“Hell­
er”), Chicago, Illinois, a bank holding company within
the meaning of the Bank Holding Company Act, has
requested a determination under section 2(g)(3) of the
Act (12 U.S.C. § 1841(g)(3)), that Heller is not in fact
capable of directly or indirectly controlling General
Felt Industries, New York, New York, or its indirect
subsidiary KWW, Inc. (“KWW”), New York, New
York, notwithstanding the fact that KWW is indebted
to Walter E. Heller Industries (“Heller Industries”), a



wholly-owned subsidiary of Heller. This request has
been made in connection with a sale to KWW by
Heller of all of the issued and outstanding shares of
Knoll International, Inc. (“Knoll”), a manufacturer of
designer furniture and furnishings.
Under section 2(g)(3) of the act, shares transferred
after January 1, 1966, by any bank holding company to
a transferee that is indebted to the transferor, are
deemed to be owned or controlled by the transferor
unless the Board, after opportunity for hearing, deter­
mines that the transferor is not in fact capable of
controlling the transferee. Heller has not requested a
hearing, but it has submitted to the Board evidence to
support its contention that Heller and its affiliates are
not in fact capable of controlling KWW.
On the basis of the following facts of record, it is
hereby determined that Heller and its affiliates are not,
in fact, capable of controlling KWW. At the time
Heller applied to the Board to become a bank holding
company, Heller was required to divest itself of Knoll
and three other manufacturing interests held by Heller
Industries.1In 1977 Heller sold all the shares of Knoll
to KWW for a total purchase price of $23 million, of
which $8.5 million was represented by an unsecured
subordinated debenture from KWW to Knoll. The
record reflects that the sale of Knoll to KWW in 1977
was negotiated at arm’s-length, and that there are no
officer or director interlocks between Heller or its
affiliates, and KWW or its affiliates. Moreover, from
the record it appears that the debenture is being repaid
in accordance with its terms and there is no indication
that KWW will be unable to continue with its timely
payments. Finally, Heller’s board of directors has
adopted a resolution that it does not, and will not
attempt to, exercise control over KWW or Knoll, and
KWW has filed a resolution to the effect that Heller
and its affiliates are not capable of controlling KWW.
Accordingly, it is ordered that the request of Heller
for a determination pursuant to section 2(g)(3) is
granted. This determination is based on representa­
tions made to the Board by Heller and KWW. In the
event that the Board should hereafter determine that
facts material to this determination are otherwise than
as represented, or that Heller or KWW has failed to
disclose to the Board other material facts, this deter­
mination may be revoked, and any change in the facts
and circumstances relied upon in making this determi­
nation could result in the Board’s reconsideration of
this determination.

1.
serve

Walter E. Heller International Corporation, 59 F ederal R e ­
B ulletin 463, 464 (1973). While Heller originally had two

years to divest itself of its manufacturing interests, the Board had
given Heller extensions of time to divest itself of Knoll.

Legal D evelopm ents

By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority
(12 C.F.R. § 265.2(b)(1)), effective June 1, 1981.
(Signed)
[s e a l]

Jam es M c A fe e ,

A ssistan t Secretary o f the Board.

Certifications Pursuant to the Bank Holding
Company Tax A ct o f 1976
Investment Corporation of America, Inc.,
Minneapolis, Minnesota
Final Certification Pursuant to the Bank Holding
Company Tax A ct o f 1976

Investment Corporation of America, Inc., Minneapo­
lis, Minnesota (“Invesco”), has requested a final
certification pursuant to section 1101(e) of the Internal
Revenue Code (“Code”), as amended by section 2(a)
of the Bank Holding Tax Act of 1976 (the “Tax Act”),
that it has, before the expiration of the period prohibit­
ed property is permitted under the Bank Holding
Company Act, 12 U.S.C. § 1841 et seq., to be held by
a bank holding company, disposed of all the property
the disposition of which is necessary or appropriate to
effectuate section 4 of the Bank Holding Company
Act.
In connection with this request, the following infor­
mation is deemed relevant for purposes of issuing the
requested certification.1
1. Effective November 15, 1978, the Board issued a
prior certification pursuant to section 1101(a) of the
Code with respect to the proposed divestiture by
Company of 40,000 voting shares of The S&M
Company, Minneapolis, Minnesota (“ S&M”) then
held by Invesco, through the pro rata distribution of
such shares to the shareholders of Invesco.2
2. The Board’s Order certified that:
A. Invesco is a qualified bank holding corpora­
tion within the meaning of section 1103(b) of the
Code, and satisfies the requirements of that sub­
section;
B. The shares of S&M are “prohibited property”

587

within the meaning of section 1103(c) of the Code ;
and
C. The distribution of the shares of S&M is
necessary or appropriate to effectuate section 4 of
the Bank Holding Company Act.
3. On December 31, 1980, Invesco distributed to its
shareholders, on a pro rata basis, all of its shares of
S&M. Invesco does not currently own any shares of
S&M.
4. Invesco terminated its management interlocks
with S&M on December 31, 1978, as was required
by the Board’s Order.
5. Invesco has represented that it does not exercise
a controlling influence over the management or
policies of S&M.
6. Invesco has represented that it holds no other
property the disposition of which is required by
section 4 of the Bank Holding Company Act.
On the basis of the foregoing information, it is
hereby certified that Invesco has, before the expira­
tion of the period prohibited property is permitted
under the Bank Holding Company Act to be held by a
bank holding company, disposed of all of the property
the disposition of which is necessary or appropriate to
effectuate section 4 of the Bank Holding Company
Act.
This certification is based upon the representations
made to the Board by Invesco and upon the facts set
forth above. In the event the Board should determine
that facts material to this certification are otherwise
than as represented by Invesco, or that Invesco has
failed to disclose to the Board other material facts, it
may revoke this certification.
By order of the Board of Governors, acting through
its Acting General Counsel, pursuant to delegated
authority (12 C.F.R. § 265.2(b)(3)), effective June 8,
1981.
(Signed)
[ s e a l]

Jam es M c A fe e ,

A ssistan t Secretary o f the Board.

Noble Bancshares, Inc.,
Noble, Oklahoma
Final Certification Pursuant to the Bank Holding
Company Tax A ct o f 1976

1. This information derives from Invesco’s communications with
the Board concerning its request for this certification, Invesco’s
Registration Statement filed with the Board pursuant to the Bank
Holding Company Act, and other records of the Board.
2. On July 30, 1980, S&M increased its number of outstanding
shares to 1,064,787, the number of Invesco shares then outstanding.
Invesco has indicated that these additional shares were acquired by
Invesco in a transaction in which gain was not recognized under
section 305(a) of the Code. Under section 1101(c) of the Code, these
additional shares would be eligible for tax benefits if they were
received in such a transaction.




Noble Bancshares, Inc. (formerly Noble Insurance
Agency, Inc.), Noble, Oklahoma (“Noble”), has re­
quested a final certification pursuant to section
6158(c)(2) of the Internal Revenue Code (“Code”), as
amended by section 3(a) of the Bank Holding Compa­
ny Tax Act of 1976, (“Tax Act”) that it has (before the
expiration of the period prohibited property is permit­

588

Federal Reserve Bulletin □ July 1981

ted under the Bank Holding Company Act (12 U.S.C.
§ 1841 et. seq.) to be held by a bank holding company)
divested all of its prohibited property.
In connection with request, the following informa­
tion is deemed relevant for the purposes of issuing the
requested certification.1
1. Effective November 6, 1980, the Board issued a
prior certification pursuant to section 6158(a) of the
Code with respect to Noble’s proposed sale of all of
its insurance agency business to Noble Insurance
Agency, Inc., Noble, Oklahoma (“Agency”).
2. The Board’s Order certified that:
A. Noble is a qualified bank holding company
within the meaning of section 1103(b) of the Code,
and satisfies the requirements of that subsection.
B. The insurance agency business that Noble
proposes to sell is “prohibited property” within
the meaning of section 1103(c) of the Code.
C. The sale of the insurance agency business is
necessary or appropriate to effectuate section 4 of
the Bank Holding Company Act.
3. On December 30, 1980, following prior certifica­
tion of the transaction by the Board of Governors,
acting through its General Counsel, Noble sold all of
its insurance agency business to Agency.
4. Noble has represented to the Board that it has

Or d e r s A p p r o v in g A p p l ic a t io n s U n d e r
Ba n k M e r g e r A c t

th e

disposed of all of its nonbanking property and that it
does not own or control any nonbanking shares or
property or engage in any nonbanking activities.
On the basis of the foregoing information, it is
hereby certified that Noble has (before the expiration
of the period prohibited property is permitted under
the Bank Holding Company Act to be held by a bank
holding company) disposed of all property the disposi­
tion of which is necessary or appropriate to effectuate
section 4 of the Bank Holding Company Act.
This certification is based upon representations
made to the Board by Noble and upon the facts set
forth above. In the event the Board should hereafter
determine that facts material to this certification are
otherwise than as represented by Noble or that Noble
has failed to disclose to the Board other material facts
or to fulfill any commitments made to the Board in
connection herewith, it may revoke this certification.
By order of the Board of Governors, acting through
its Acting General Counsel, pursuant to delegated
authority (12 C.F.R. § 265.2(b)(3)), effective June 17,
1981.

(Signed)

Jam es M c A fe e ,

A ssistan t Secretary o f the Board.

[se a l]

B a n k H o l d in g C o m p a n y A c t

and

By the Board o f Governors
During June 1981, the Board of Governors approved the applications listed below. Copies are available upon
request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3

Bank(s)

Applicant
Crosstown Holding Company,
Ham Lake, Minnesota
Shelbyville Bancshares, Inc.,
Shelbyville, Missouri
Southeast Financial Bankstock Corporation,
McGehee, Arkansas
Southwest Bancshares, Inc.,
Houston, Texas

Crosstown State Bank of Ham Lake Inc.,
Ham Lake, Minnesota
Farmers and Merchants Bank of Green
Ridge,
Green Ridge, Missouri
McGehee Bank,
McGehee, Arkansas
Copperfield National Bank,
Harris County, Texas

1. This information derives from Noble’s communications with the
Board concerning its request for this certification, Noble’s Registra-




Board action
(effective
date)
June 3, 1981
June 10, 1981

June 22, 1981
June 16, 1981

tion Statement filed with the Board pursuant to the Bank Holding
Company Act, and other records of the Board.

Legal D evelopm ents

589

Section 3—Continued
Applicant

Bank(s)

Texas American Bancshares Inc.,
Fort Worth, Texas
Texas American Bancshares Inc.,
Fort Worth, Texas

Reserve
Bank

Empire Bank,
Dallas, Texas
The Collin County National
Bank of McKinney,
McKinney, Texas

Effective
date
June 29, 1981
June 2, 1981

By Federal R eserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders
are available upon request to the Reserve Banks.
Section 3
Applicant
Allied Bancshares, Inc.,
Houston, Texas
American Exchange Company,
Elmwood, Nebraska
Banclndependent Incorporated,
Sheffield, Alabama
Bancshares of New Jersey, Inc.,
Wilmington, Delaware

Bel Tower Financial, Incorporated,
Stanwood, Iowa
Cen-La Bancshares, Inc.,
Marks ville, Louisiana
Citizens Bancorporation,
Sheboygan, Wisconsin
Columbine Valley Corporation,
Littleton, Colorado
Community Banks, Inc.,
Middleton, Wisconsin
Consolidated Bancshares, Inc.,
Abilene, Texas
Country Hill Bancshares, Inc.,
Lenexa, Kansas
Crown Bancshares, Inc.,
Kansas City, Missouri




Bank(s)
Jetero Bank,
Houston, Texas
American Exchange Bank,
Elmwood, Nebraska
First Colbert National Bank,
Sheffield, Alabama
The Bank of New Jersey,
Camden, New Jersey
The Bank of New Jersey, N.A.,
Moorestown, New Jersey
Prospect Park National Bank,
Wayne, New Jersey
Union Trust & Savings Bank,
Stanwood, Iowa
Central Louisiana Bank & Trust
Company,
Marks ville, Louisiana
Gillett State Bank,
Gillett, Wisconsin
Columbine Valley Bank and Trust,
Littleton, Colorado
The American Exchange Bank of
Madison, Wisconsin,
Madison, Wisconsin
Abilene National Bank,
Abilene, Texas
Country Hill State Bank,
Lenexa, Kansas
The First National Bank of Law­
rence,
Lawrence, Kansas
The Merchants National Bank of To­
peka,
Topeka, Kansas

Reserve
Bank

Effective
date

Dallas

June 25, 1981

Kansas City

May 21, 1981

Atlanta

June 12, 1981

Philadelphia

May 29, 1981

Chicago

June 8, 1981

Atlanta

June 23, 1981

Chicago

June 8, 1981

Kansas City

May 29, 1981

Chicago

June 16, 1981

Dallas

June 5, 1981

Kansas City

May 15, 1981

Kansas City

June 12, 1981

590

Federal Reserve Bulletin □ July 1981

Section 3—Continued
Applicant
Eaton Capital Corporation,
Eaton, Colorado
Farmers State Bankshares, Inc.,
Burns, Wyoming
First Abilene Bankshares, Inc.,
Abilene, Texas
First Bancshares of Seguin, Inc.,
Seguin, Texas
First Broken Arrow Corporation,
Broken Arrow, Oklahoma
First Eastex Bancshares, Inc.,
Buna, Texas
First Florida Banks, Inc.,
Tampa, Florida
Multi-Line, Inc.,
Tampa, Florida
First State Bancshares, Inc.,
Port Orchard, Washington
Good Thunder Bancshares, Inc.,
Good Thunder, Minnesota
Guaranty Bancorp,
Zachary, Louisiana
Harrisonville Bancshares, Inc.,
Harrisonville, Missouri
Harvard Tower Holding
Corporation,
Tulsa, Oklahoma
Hawkeye Bancorporation,
Des Moines, Iowa
King Bancshares, Inc.,
Kingman, Kansas
Kingman County Financial Corp.,
Norwich, Kansas
Lafourche Bancshares, Inc.,
Larose, Louisiana
Lee County Bancorp., Inc.,
Fort Madison, Iowa
Lorenzo Bancshares, Inc.,
Lorenzo, Texas
Manufacturers Bancorp, Inc.,
St. Louis, Missouri
Metro Bancorp, Inc.,
Farmington Hills, Michigan



Bank(s)

Reserve
Bank

Effective
date

The Eaton Bank,
Eaton, Colorado
The Farmers State Bank of Burns,
Burns, Wyoming
First National Bank, Sweetwater,
Texas
Sweetwater, Texas
First National Bank of Seguin,
Seguin, Texas
The First National Bank of Broken
Arrow,
Broken Arrow, Oklahoma
East Texas State Bank,
Buna, Texas
First Florida,
Tampa, Florida

Kansas City

June 19, 1981

Kansas City

June 8, 1981

Dallas

June 9, 1981

Dallas

June 25, 1981

Kansas City

June 12, 1981

Dallas

June 26, 1981

Atlanta

June 10, 1981

First State Bank,
Port Orchard, Washington
First State Bank of Good Thunder,
Good Thunder, Minnesota
Guaranty Bank & Trust Company,
Zachary, Louisiana
Allen Bank and Trust Company,
Harrisonville, Missouri
Harvard Tower Bank,
Tulsa, Oklahoma

San Francisco

June 9, 1981

Minneapolis

June 2, 1981

Atlanta

June 19, 1981

Kansas City

June 19, 1981

Kansas City

June 12, 1981

Chicago

June 19, 1981

Kansas City

June 12, 1981

Kansas City

June 19, 1981

Atlanta

June 18, 1981

Chicago

May 29, 1981

Dallas

June 26, 1981

St. Louis

June 26, 1981

Chicago

June 16, 1981

Jackson State Bank and Trust Company,
Maquoketa, Iowa
The First National Bank of King­
man,
Kingman, Kansas
The Farmers State Bank of Nor­
wich,
Norwich, Kansas
South Lafourche Bank and Trust
Company,
Larose, Louisiana
Lee County Savings Bank,
Fort Madison, Iowa
Lorenzo State Bank at Lorenzo,
Lorenzo, Texas
First National Bank of Franklin
County,
Union, Missouri
Metropolitan National Bank of Farmington,
Farmington Hills, Michigan

Legal D evelopm ents

591

Section 3—Continued
A
Appl,cant
Northern National Corporation,
Moorestown, New Jersey
Northern National Corporation,
Moorestown, New Jersey
Bancshares of New Jersey, Inc.,
Wilmington, Delaware
Northshore Bancshares, Inc.,
Houston, Texas
North Texas Bancshares, Inc.,
North Richland Hills, Texas

Olivia Bancorporation, Inc.,
Olivia, Minnesota
One Valley Bancorp of West
Virginia, Inc.,
Charleston, West Virginia
Pagosa Springs Holding Company,
Pagosa Springs, Colorado
Peoples Banking Corporation,
Bay City, Michigan
Quitman Bancshares, Inc.,
Quitman, Georgia
Remer Bancorporation, Inc.,
Remer, Minnesota
Republic Bancshares Corporation,
Clearwater, Florida
Ruston Bancshares, Inc.,
Ruston, Louisiana
Salem National Bancorporation,
Inc.,
Salem, Illinois
Security Holding Company
Miami, Oklahoma
Shidler Bancshares, Inc.,
Shidler, Oklahoma
Steele BanCorp.,
Cherokee, Iowa
Texas Commerce Bancshares, Inc.,
Houston, Texas
Verdigre State Company,
Verdigre, Nebraska

Walker Ban Co.,
Walker, Minnesota
Winthrop Bancshares, Inc.,
Winthrop, Minnesota



i ✓\
Bank(s)

Reserve
Bank

Effective
date

Bancshares of New Jersey, Inc.,
Wilmington, Delaware
The Bank of New Jersey, National
Association,
Moorestown, New Jersey

Philadelphia

May 29, 1981

Philadelphia

May 29, 1981

Northshore Bank,
Houston, Texas
Bank of North Texas,
North Richland Hills, Texas,
Meadowbrook National Bank,
Fort Worth, Texas
American State Bank of Olivia,
Olivia, Minnesota
Kanawha Valley Bank, N.A.,
Charleston, West Virginia

Dallas

June 26, 1981

Dallas

June 11, 1981

Minneapolis

June 22, 1981

Richmond

June 15, 1981

Kansas City

June 12, 1981

Chicago

May 29, 1981

Atlanta

June 26, 1981

Minneapolis

June 26, 1981

Atlanta

June 2, 1981

Dallas

June 8, 1981

St. Louis

June 26, 1981

Kansas City

May 19, 1981

Kansas City

June 12, 1981

Chicago

June 19, 1981

Dallas

June 12, 1981

Kansas City

May 15, 1981

Minneapolis

June 19, 1981

Minneapolis

June 15, 1981

The Citizens Bank of Pagosa
Springs,
Pagosa Springs, Colorado
Community Bank,
Bad Axe, Michigan
Bank of Quitman,
Quitman, Georgia
Security State Bank of Remer,
Remer, Minnesota
The Republic Bank,
Clearwater, Florida
Ruston State Bank & Trust
Company,
Ruston, Louisiana
Salem National Bank,
Salem, Illinois
Security Bank and Trust Company,
Miami, Oklahoma
Shidler State Bank,
Shidler, Oklahoma
The Steele State Jank,
Cherokee, IoVa
Friendswood Bank,
Friendswood, Texas
The Verdigre Agency, Inc.,
Verdigre, Nebraska
Bank of Verdigre,
Verdigre, Nebraska
First National Bank of Walker,
Walker, Minnesota
Winthrop State Bank,
Winthrop, Minnesota

592

Federal Reserve Bulletin □ July 1981

Section 3—Continued
Bank(s)

Applicant
Woodland Bancorp, Inc.,
Tulsa, Oklahoma

Woodland Bank,
Tulsa, Oklahoma

Reserve
Bank
Kansas City

Effective
date
May 20, 1981

Sections 3 and 4
Nonbanking
company
(or activity)

Bank(s)

Applicant
Flora Financial Corpo­
ration,
Flora, Mississippi

Bank of Flora
Flora, Mississippi

Leitchfield Deposit
Bancshares, Inc.,
Leitchfield, Ken­
tucky

Leitchfield Deposit
Bank and Trust
Company,
Leitchfield, Ken­
tucky

Wood Lake Bancorpo­
ration,
Wood Lake, Minne­
sota

Wood Lake Corpora­
tion
Wood Lake, Minne­
sota

to act as agent or broker
in the sale of credit
life and credit accident
and health insurance
directly related to ex­
tensions of credit.
to engage in the sale of
insurance directly re­
lated to extensions of
credit made by Bank
through B.S. Alexan­
der Insurance Agency,
Inc., Leitchfield, Ken­
tucky
to retain the general in­
surance agency of the
corporation which op­
erates in a community
with a population not
exceeding 5,000.

Reserve
Bank

Effective
date

Atlanta

June 23, 1981

St. Louis

June 3, 1981

Minneapolis

June 24, 1981

Section 4
Nonbanking
company
(or activity)

Applicant

Northeast Kansas Agency, Inc.,
Nortonville, Kansas,
to engage in the sale of general insurance in a
community of less than 5,000 population.

Nortonville Bancshares, Inc.,
Nortonville, Kansas

P e n d in g C a s e s I n v o l v i n g

th e

B oard

of

Louis J. Roussel v. Board o f Governors, filed May

1981, U.S.C.A. for the District of Columbia.

June 12, 1981

G overn ors*

*This list o f pending cases does not include suits
against the Federal R eserve Banks in which the Board
o f Governors is not nam ed a party.




Effective
date

Wilshire Oil Com pany o f Texas v. Board o f G over­
nors, et al., filed April 1981, U.S.C.A. for the Third

Circuit.
People o f the State o f Arkansas v. Board o f G over­
nors, et al., filed March 1981, U.S.C.A. for the

Western District of Arkansas.

Legal D evelopm ents

First Bank & Trust Company v. Board of Governors,
filed February 1981, U.S.D.C. for the Eastern Dis­
trict of Kentucky.
Ellis E. St. Rose & James H. Sibbet v. Board of
Governors, filed February 1981, U.S.D.C. for the
District of Columbia.
Option Advisory Service, Inc. v. Board of Governors,
et al., filed February 1981, U.S.C.A. for the Second
Circuit.
9 to 5 Organization for Women Office Workers v.
Board of Governors, filed December 1980,
U.S.D.C. for the District of Massachusetts.
Securities Industry Association v. Board of Gover­
nors, et al., filed October 1980, U.S.D.C. for the
District of Columbia.
Securities Industry Association v. Board of Gover­
nors, et al., filed October 1980, U.S.C.A. for the
District of Columbia.
A. G. Becker, Inc. v. Board of Governors, et al., filed
October 1980, U.S.D.C. for the District of Colum­
bia.
A. G. Becker, Inc. v. Board o f Governors, et al., filed
October 1980, U.S.C.A. for the District of Colum­
bia.
Independent Insurance of America and Independent
Insurance Agents of Missouri v. Board of Gover­
nors, filed September 1980, U.S.C. A. for the Eighth
Circuit.
Independent Insurance Agents of America and Inde­
pendent Insurance Agents of Virginia v. Board of
Governors, filed September 1980, U.S.C.A. for the
Fourth Circuit.
Nebraska Bankers Association, et al. v. Board of
Governors, et al., filed September 1980, U.S.D.C.
for the District of Nebraska.
Republic of Texas Corporation v. Board of Governors,
filed September 1980, U.S.C.A. for the Fifth Cir­
cuit.




593

A. G. Becker, Inc. v. Board of Governors, et al., filed
August 1980, U.S.D.C. for the District of Columbia.
Otero Savings and Loan Association v. Board of
Governors, filed August 1980, U.S.D.C. for the
District of Columbia.
Edwin F. Gordon v. Board of Governors, et al., filed
August 1980, U.S.C.A. for the Fifth Circuit.
U.S. League of Savings Associations v. Depository
Institutions Deregulation Committee, et al., filed
June 1980, U.S.D.C. for the District of Columbia.
Berkovitz, et al. v. Government of Iran, et al., filed
June 1980, U.S.D.C. for the Northern District of
California.
Mercantile Texas Corporation v. Board of Governors,
filed May 1980, U.S.C.A. for the Fifth Circuit.
Corbin, Trustee v. United States, filed May 1980,
United States Court of Claims.
Ulyssess S. Crockett v. United States, et al., filed
April 1980, U.S.D.C. for the Eastern District of
North Carolina.
County National Bancorporation and TGB Co. v.
Board of Governors, filed September 1979,
U.S.C.A. for the Eighth Circuit.
Donald W. Riegel, Jr. v. Federal Open Market Commitee, filed July 1979, U.S.D.C. for the District of
Columbia.
Security Bancorp and Security National Bank v.
Board of Governors, filed March 1978, U.S.C.A. for
the Ninth Circuit.
Roberts Farms, Inc. v. Comptroller of the Currency,
et al., filed November 1975, U.S.D.C. for the South­
ern District of California.
David Merrill, et al. v. Federal Open Market Commit­
tee, filed May 1975, U.S.D.C. for the District of
Columbia.

Al

Financial and Business Statistics
C on tents

D o m e stic F in a n cial S ta tis tic s

W e e k l y R e p o r t in g C o m m e r c ia l B a n k s

A3 Monetary aggregates and interest rates
A4 Reserves of depository institutions, reserve,
bank credit
A5 Reserves and borrowings of depository
institutions
A6 Federal funds and repurchase agreements of
large member banks

Assets and liabilities
A18 All reporting banks
A19 Banks with assets of $1 billion or more
A20 Banks in New York City
A21 Balance sheet memoranda
A22 Commercial and industrial loans
A23 Gross demand deposits of individuals,
partnerships, and corporations

P o l ic y I n s t r u m e n t s
F i n a n c ia l M a r k e t s

A l Federal Reserve Bank interest rates
A8 Depository institutions reserve requirements
A9 Maximum interest rates payable on time and
savings deposits at federally insured institutions
A10 Federal Reserve open market transactions

Fe d e r a l R e se r v e B a n k s

A ll Condition and Federal Reserve note statements
A12 Maturity distribution of loan and security
holdings

A23 Commercial paper and bankers dollar
acceptances outstanding
A24 Prime rate charged by banks on short-term
business loans
A24 Terms of lending at commercial banks
A25 Interest rates in money and capital markets
A26 Stock market—Selected statistics
A27 Savings institutions—Selected assets and
liabilities

Federal Fin a n c e
M o n e t a r y a n d C r e d it A g g r e g a t e s

A12 Bank debits and deposit turnover
A13 Money stock measures and components
A14 Aggregate reserves of depository institutions
and member bank deposits
A15 Loans and securities of all commercial banks

C o m m e r c ia l B a n k s

A16 Major nondeposit funds
A17 Assets and liabilities, last Wednesday-of-month
series




A28
A29
A30
A30

Federal fiscal and financing operations
U.S. budget receipts and outlay
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types and
ownership
A31 U.S. government marketable securities—
Ownership, by maturity
A32 U.S. government securities dealers—
Transactions, positions, and financing
A33 Federal and federally sponsored credit
agencies—Debt outstanding

A2

Federal Reserve Bulletin □ July 1981

S e c u r it ie s M a r k e t s
C o r po r a te Fin a n c e

and

A34 New security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales and
asset position
A3 5 Corporate profits and their distribution
A36 Nonfinancial corporations—Assets and
liabilities
A36 Total nonfarm business expenditures on new
plant and equipment
A37 Domestic finance companies—Assets and
liabilities; business credit

A54 Foreign branches of U.S. banks—Balance sheet
data
A56 Selected U.S. liabilities to foreign official
institutions
R eported

by

Ba n k s

i n th e

U n it e d S t a t e s

A56
A57
A59
A60

Liabilities to and claims on foreigners
Liabilities to foreigners
Banks’ own claims on foreigners
Banks’ own and domestic customers’ claims on
foreigners
A60 Banks’ own claims on unaffiliated foreigners
A61 Claims on foreign countries—Combined
domestic offices and foreign branches

R eal E state
S e c u r it ie s H o l d in g s

A38 Mortgage markets
A39 Mortgage debt oustanding

C o n s u m e r I n s t a l l m e n t C r e d it

A40 Total outstanding and net change
A41 Extension and liquidations

Fl o w

of

F unds

A42 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets

D o m e stic N o n fin a n cia l S ta tis tic s
A44 Nonfinancial business activity—Selected
measures
A44 Output, capacity, and capacity utilization
A45 Labor force, employment, and unemployment
A46 Industrial production—Indexes and gross value
A48 Housing and construction
A49 Consumer and producer prices
A50 Gross national product and income
A51 Personal income and saving

In tern a tio n a l S ta tis tic s
A52 U.S. international transactions—Summary
A53 U.S. foreign trade
A53 U.S. reserve assets




and

Tr a n s a c t i o n s

A62 Marketable U.S. Treasury bonds and notes—
Foreign holdings and transactions
A62 Foreign official assets held at Federal Reserve
Banks
A63 Foreign transactions in securities

R e p o r t e d b y N o n b a n k i n g B u s in e s s
E n t e r p r is e s i n t h e U n it e d S t a t e s

A64 Liabilities to unaffiliated foreigners
A65 Claims on unaffiliated foreigners

In t e r e s t

and

Ex c h a n g e R a t e s

A66 Discount rates of foreign central banks
A66 Foreign short-term interest rates
A66 Foreign exchange rates

A67 G u ide to T abu lar P r e s e n ta tio n y
S ta tis tic a l R e le a s e s , a n d S p e c ia l
T ables
S p ecia l T ables
A68 Survey of time and savings deposits at
commercial banks, April 29, 1981
A72 Commercial bank assets and liabilities, March 31,
1981
A78 Assets and liabilities of U.S. branches and agen­
cies of foreign banks, March 31, 1981

Domestic Financial Statistics
1.10

A3

MONETARY AGGREGATES AND INTEREST RATES

02

03

04

Q l'

A pr.'

May

Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent)1

Reserves of depository institutions
1
2
3
4
5
6
7
8
9

.4
.7
7.4
5.6

M l - A ..............................................................................
M l- B ..................................................................................
M 2 ......................................................................................
M 3 ......................................................................................
L ...........................................................................................

6.7
5.8
12.4
9.5

- 4 .9 '
- 3 .0 '
5.1'
6.0
6.8

T o t a l................................................................................
R equired.........................................................................
Nonborrowed.................................................................
Monetary base2 ............................................................

11.3'
13.9
15.4'
13.1
9.9

Concepts of money and liquid assets3

16.5
15.2
7.2
10.6

8.2'

11.9

.0

6.0

7.2
-10.4
7.3

2.5

- .9
- .7

6.8

8.2

-1 4 .7
- 4 .0
-1 2 .4

5.5

4.9

2.2

21.9
7.5

20.8

-4 .6
13.1
16.1
10.8
5.5

-1 0 .4
16.4
- 5 .9
1.5

2.0

10.8 '

4.9

-39.0
10.4

8.1
11.3'
11.5'

8.2

8.2

12.4
12.6

15.2
15.5

-25.3
5.7
10.6
11.8
11.5

10.1

15.4'
1.5'
16.2'
25.4'
9.7

17.0
-3 0 .5
30.2
37.5
5.3

21.3
-51.2
41.0
50.6
3.5

9.8
-22.3
16.3
23.8
3.0

6.7

14.7

11.8

15.8

8.1

-

12.6
9.0
-14.6
9.8

2.6

- 5 .6

22.3
13.5
10.9

-6.1

6.8
-2 .8

19.1
-16.0
15.8
44.3

4.1
9.1
n.a.

Time and savings deposits
Commercial banks
10
T o ta l..............................................................................
11
Savings4.........................................................................
12
Small-denomination tim e5 .....................................
13
Large-denomination tim e6.....................................
14 Thrift institutions7..........................................................

10.7'

6.1'

21. 8 '

22.2 '

32.7'
13.2'
4.7

-

2.1'
- 1 .2 '

.0

15 Total loans and securities at commercial banks8.

2.0

5.4
13.7
- 2 .5
4.5

2.8
11.6

1980
Q3

Q4

Q2

Ql

Apr.

May

June

Interest rates (levels, percent per annum)

Short-term rates
16
17
18
19

Federal funds9 ..........................................
Discount window borrowing10..............
Treasury bills (3-month market yield)1
1
Commercial paper (3-month)11,12........

9.83
10.35
9.15
9.65

15.85
11.78
13.61
15.26

16.57
13.00
14.39
15.34

17.78
13.62
14.91
16.15

15.93
13.00
14.79
15.49

14.70
13.00
13.36
13.94

15.72
13.00
13.69
14.56

18.52
13.87
16.30
17.56

19.10
14.00
14.73
16.32

10.95
8.58

12.23
9.59
13.49
14.62

12.74
9.97
14.45
15.10

13.49
10.69
15.41
n.a.

12.98
10.10
14.90
15.10

12.94
10.16
14.71
15.25

13.46
10.62
15.68
15.70

13.82
10.78
15.81
16.35

13.20
10.67
14.76
n.a.

Long-term rates
Bonds
20
U.S. government13..............................
21
State and local government14............
22
Aaa utility (new issue)15....................
23 Conventional mortgages16......................

12.20

13.12

1. Unless otherwise noted, rates of change are calculated from average amounts
outstanding in preceding month or quarter. Growth rates are adjusted for discon­
tinuities in series that result from changes in Regulation D.
2. Includes reserve balances at Federal Reserve Banks in the current week plus
vault cash held two weeks earlier used to satisfy reserve requirements at all deposi­
tory institutions plus currency outside the U.S. Treasury, Federal Reserve Banks,
the vaults of depository institutions, and surplus vault cash at depository institu­
tions.
3. M l-A : Averages of daily figures for (1) demand deposits at all commercial
banks other than those due to domestic banks, the U.S. government, and foreign
banks and official institutions less cash items in the process of collection and Federal
Reserve float; (2) currency outside the Treasury, Federal Reserve Banks, and the
vaults of commercial banks; and (3) travelers checks of nonbank issuers.
M l-B : M l-A plus negotiable order of withdrawal and automated transfer service
accounts at banks and thrift institutions, credit union share draft accounts, and
demand deposits at mutual savings banks.
M2: M l-B plus savings and small-denomination time deposits at all depository
institutions, overnight repurchase agreements at commercial banks, overnight Eu­
rodollars held by U.S. residents other than banks at Caribbean branches of member
banks, and money market mutual fund shares.
M3: M2 plus large-denomination time deposits at all depository institutions and
term RPs at commercial banks and savings and loan associations.
L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents
other than banks, bankers acceptances, commercial paper. Treasury bills and other
liquid Treasury securities, and U.S. savings bonds.




4. Savings deposits exclude NOW and ATS accounts at commercial banks.
5. Small-denomination time deposits are those issued in amounts of less than
$ 100 , 000 .

6. Large-denomination time deposits are those issued in amounts of $100,000 or
more.
7. Savings and loan associations, mutual savings banks, and credit unions.
8. Changes calculated from figures shown in table 1.23.
9. Averages of daily effective rates (average of the rates on a given date weighted
by the volume of transactions at those rates).
10. Rate for the Federal Reserve Bank of New York.
11. Quoted on a bank-discount basis.
12. Unweighted average of offering rates quoted by at least five dealers.
13. Market yields adjusted to a 20-year maturity by the U.S. Treasury.
14. Bond Buyer series for 20 issues of mixed quality.
15. Weighted averages of new publicly offered bonds rated Aaa, Aa, and A by
Moody’s Investors Service and adjusted to an Aaa basis. Federal Reserve com­
pilations.
16. Average rates on new commitments for conventional first mortgages on new
homes in primary markets, unweighted and rounded to nearest 5 basis points, from
Dept, of Housing and Urban Development.
N o t e . The monetary aggregates have been revised to reflect new benchmark
data and a definitional change to include outstanding travelers checks issued by
nonbanks. See “Announcements” in this b u l l e t i n for details.

A4
1.11

Domestic Financial Statistics □ July 1981
RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures

Weekly averages of daily figures for week-ending

1981

1981

Factors

Apr.P

May

1 Reserve Bank credit outstanding..................

143,648

144,065

144,999

2 U.S. government securities1 ..........................
3
Bought outright............................................

120,008
119,468
540
8,775
8,720
55

119,937
119,819
118
8,738
8,720
18

120,637
120,333
304
8,733
8,710
63

9 Loans..................................................................
10 Float ..................................................................
11 Other Federal Reserve assets........................

69
1,343
3,195
10,258

20
2,154
3,085
10,131

12 Gold sto c k ........................................................
13 Special drawing rights certificate account. . .
14 Treasury currency outstanding......................

11,154
2,818
13,538

15 Currency in circulation .................................................
16 Treasury cash holdings....................................

Deposits, other than member bank reserves,
with Federal Reserve Banks
17
Treasury........................................................
18
F oreign..........................................................
19
O ther..............................................................

p

June

p

May 13 p

May 20 p

May

27 p

June 3 p

June 10/>

June 17 p

June 24 p

Supplying R eserve F unds

5 Federal agency securities................................
6
Bought outright............................................

145,173

143,987

143,574

142,889

144,653

145,949

118.191
118.191

143,559

121.587
121.587

120,112
120,112

119.447
119.447

118.900
118.900

120.655
120.655

8.720
8.720

8.720
8.720

8.720
8.720

8.720
8.720

8.718
8.718

8.707
8.707

121,618
120,971
647
8,891
8,707
184

155
2,038
3,474
9,922

1,734
4,295
10,619

1,975
3,039
9,851

2,923
2,368
9,864

1,954
3,962
9,491

2,207
3,647
9,418

1,895
3,628
9,769

142
2,305
2,577
10,415

11,154
2,818
13,544

11,154
2,826
13,567

11,154
2,818
13,539

11,154
2,818
13,543

11,154
2,818
13,551

11,154
2,818
13,557

11,154
2,818
13,561

11,154
2,818
13,567

11,154
2,818
13,571

134,553
498

135,631
509

136,710
499

135,775
514

135,742
509

135,958
506

136,168
502

136,653
506

136,956
502

136,647
504

3,353
411
295

3,210
342
283

3,049
292
367

3,299
555
271

3,119
274
276

2,830
258
241

2,982
314
401

2,613
323
346

3,196
258
391

3,021
310
321

4,875
27,173

4,784
26,822

4,810
26,819

4,711
25,944

4,938
27,829

4,884
26,832

4,515
26,220

4,368
26,612

4,636
26,254

5,259
27,430

June 24

A bsorbing R eserve F unds

20 Other Federal Reserve liabilities and

ca p ital........................................................
21 Reserve accounts2............................................

End of month figures

Wednesday figures

1981

1981

Apr.

May

June

May 13

May 20

May 27

June 3

June 10

June 17

22 Reserve bank credit outstanding ............................

143,452

140,540

142,934

143,456

148,131

141,814

150,192

142,721

151,595

144,646

23 U.S. government securities1 ....................................
24
Bought outright............................................
25
Held under repurchase agreem ents..........
26 Federal agency securities................................
27
Bought outright ............................................................

119.687
119.687

118.311
118.311

120.017
120.017

116.292
116.292

122.239
122.239

117.193
117.193

121.375
121.375

116.749
116.749

121.346
121.346

119.360
119.360

8.720
8.720

8.720
8.720

8.694
8.694

8.720
8.720

8.720
8.720

8.720
8.720

8.720
8.720

8.707
8.707

8.707
8.707

8.707
8.707

Supplying

R eserve

Funds

28

Held under repurchase agreem ents ..............

29
30
31
32

Acceptances
.
..........................
Loans ..........................................................................................
F lo a t ..........................................................................................
Other Federal Reserve assets........................

2,333
2,156
10,556

1,366
2,542
9,601

1,010
2,506
10,707

3,683
3,820
10,941

3,847
3,440
9,885

8,851
4,082
9,968

5,742
4,833
9,522

3,613
4,077
9,575

6,357
4,660
10,525

1,803
4,315
10,461

33 Gold s to c k ........................................................
34 Special drawing rights certificate account. . .
35 Treasury currency outstanding......................

11,154
2,818
14,061

11,154
2,818
13,555

11,154
3,068
13,580

11,154
2,818
13,539

11,154
2,818
13,549

11,154
2,818
13,555

11,154
2,818
13,559

11,154
2,818
13,565

11,154
2,818
13,570

11,154
2,818
13,575

134,991
508

135,908
502

137,499
484

136,285
512

136,040
507

136,624
501

136,655

137,372
505

137,127

136,918

504

4,460
476
311

2,288
346
275

2,923
338
536

3,692
286
240

3,085
270
221

2,880
299
245

4,127
186

2,391
238

5,215

441

400

4,674
26,063

4,444
24,304

5,330
23,626

4,617
25,334

4,652
30,877

4,707
24,084

A bsorbing R eserve F unds
36 Currency in circulation ..................................................
37 Treasury cash holdings ..................................................
38
39
40
41
42

Deposits, other than member bank reserves,
with Federal Reserve Banks
T reasury........................................................
F oreign ...............................................................................
O ther .....................................................................................
Other Federal Reserve liabilities and
cap ital ................ .......................................................
Reserve accounts2 ............................................................

1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.




4,224

4,340

31,586

25,011

498

505

196
435

2,909
237
284

4,714
30,951

5,217
26,122

2. Includes reserve balances of all depository institutions,
N ote . For amounts of currency and coin held as reserves, see table 1.12.

Depository Institutions
1.12

RESERVES AND BORROWINGS
Millions of dollars

A5

Depository Institutions

Monthly averages of daily figures
Reserve classification

1979

1980
Nov.

1981
Dec.

Jan . p

Feb.P

Mar.P

Apr.P

MayP

June/7

Dec.
1 Reserve balances with Reserve Banks1.......
3
4
5
6
7
8
9
10
11
12
13
28
15
16
17
18
19
20
21
22
23

Vault cash at institutions with required
reserve balances2................................
Vault cash equal to required reserves at
other institutions................................
Surplus vault cash at other institutions3 ..
Reserve balances + total vault cash4 .........
Reserve balances + total vault cash used
to satisfy reserve requirements4,5.........
Required reserves (estimated).....................
Excess reserve balances at Reserve Banks4,6.
Total borrowings at Reserve Banks.........
Seasonal borrowings at Reserve Banks
Large commercial banks
Reserves held.................................................
Required....................................................
Excess............................................................
Small commercial banks
Reserves held.................................................
Required.....................................................
Excess........................................................
U.S. agencies and branches
Reserves held.................................................
Required.....................................................
Excess........................................................
All other institutions
Reserves held.................................................
Required....................................................
Excess........................................................

Oct.

32,473

29,976

29,215
15.311

26,664
18,149

27,114
19,293

26,591
17,824

26,722
17,327

27,117
17,189

26,822
17,773

26,819
18,198

11,344

11,678

11,876

12,602

13,587

12,187

11,687

11,687

12,124

12,396

n.a.
n.a.
43,972

n.a.
n.a.
41,815

439
2,996
44,674

704
4,843
44,940

700
5,006
46,520

763
4,874
44,524

1,237
4,403
44,155

1,204
4,298
44,395

1,310
4,339
44,683

1,350
4,452
45,100

n a.
43,578
394
1,473
82

n.a.
41,498
317
1,335
67

41,678
40,723
955
2,156
99

40,097
40,067
30
1,617
116

41,514
41,025
489
1,405
120

39,650
39,448
202
1,278
148

39,752
39,372
380
1,004
197

40,097
40,071
26
1,343
161

40,344
40,213
131
2,154
259

40,648
40,098
550
2,038
291

24,940
25,819
-879

26,267
26,605
-338

24,874
25,328
-454

24,772
25,145
-373

24,894
25,519
-625

25,033
25,450
-417

25,332
25,315
17

13,719
13,523
196

13,935
13,690
245

13,305
13,235
70

13,386
13,229
157

13,628
13,558
70

13,773
13,633
140

13,683
13,549
134

260
230
30

253
228
25

388
366
22

461
450
11

444
432
12

576
545
31

651
628
23

494
495
-1

513
502
11

502
519
-1 7

605
548
57

611
562
49

649
585
64

646
606
40

June 10p

June 17p

June 24p

n.a.

n.a.

n.a.

Weekly averages of daily figures for week ending
May 6p

May 13p

May 20 p

May 27 p

Apr. 22p
24 Reserve balances with Reserve Banks1.......
25 Total vault cash (estimated)........................
26 Vault cash at institutions with required
reserve balances2................................
27 Vault cash equal to required reserves at
other institutions................................
28 Surplus vault cash at other institutions3 ..
29 Reserve balances + total vault cash4 .........
30 Reserve balances + total vault cash used
to satisfy reserve requirements4,5.........
31 Required reserves (estimated).....................
32 Excess reserve balances at Reserve Banks4,6.
33 Total borrowings at Reserve Banks.........
34
Seasonal borrowings at Reserve Banks
Large commercial banks
35 Reserves held.................................................
36 Required.....................................................
37 Excess........................................................
Small commercial banks
38 Reserves held.................................................
39 Required.....................................................
40 Excess........................................................
U.S. agencies and branches
41 Reserves held.................................................
42 Required.....................................................
43 Excess........................................................
All other institutions
44 Reserves held.................................................
45 Required.....................................................
46 Excess........................................................

Apr. 29p

28,258
16,155

27,940
17,353

27,741
17,947

25,944
18,562

27,834
16,711

26,835
17,627

26,220
18,249

25,612
18,312

26,254
18,846

27,430
17,306

10,971

11,845

12,298

12,686

11,449

11,940

12,379

12,379

12,756

11,907

1,186
3,998
44,503

1,238
4,270
45,379

1,298
4,351
45,776

1,311
4,565
44,591

1,187
4,075
44,635

1,384
4,303
44,552

1,414
4,456
44,556

1,433
4,500
44,011

1,417
4,673
45,185

1,230
4,169
44,818

40,505
40,739
-234
864
149

41,109
41,004
105
2,278
175

41,425
41,089
336
2,471
198

40,026
39,928
98
1,734
226

40,560
40,356
204
1,975
271

40,249
39,810
439
2,923
309

40,100
39,855
245
1,954
287

39,511
39,262
249
2,207
277

40,512
40,223
289
1,895
279

40,649
40,285
364
2,305
306

24,806
25,935
—
1,129

25,501
26,031
-530

26,381
26,174
207

24,507
25,367
-860

25,166
25,482
-316

25,056
25,032
24

24,494
25,185
-691

24,506
24,788
-282

25,119
25,458
-339

25,768
25,391
377

13,696
13,787
-91

14,131
13,990
141

14,088
13,937
151

13,679
13,547
132

13,706
13,618
88

13,724
13,572
152

13,638
13,462
176

13,349
13,222
127

13,645
13,494
151

13,754
13,682
72

436
430
6

435
422
13

429
408
21

476
430
46

654
643
11

669
627
42

668
636
32

695
651
44

663
648
15

617
610
7

611
587
24

630
561
69

602
570
32

625
584
41

648
613
35

735
579
156

631
572
59

657
601
56

640
623
17

645
602
43

1. Includes all reserve balances of depository institutions.
2. Prior to Nov. 13, 1980, the figures shown reflect only the vault cash held by
member banks.
3. Total vault cash at institutions without required reserve balances less vault
cash equal to their required reserves.
4. Adjusted to include waivers of penalties for reserve deficiencies in accordance
with Board policy, effective Nov. 19, 1975, of permitting transitional relief on a
graduated basis over a 24-month period when a nonmember bank merged into an




June 3p

existing member bank, or when a nonmember bank joins the Federal Reserve
System. For weeks for which figures are preliminary, figures by class of bank do
not add to total because adjusted data by class are not available.
5. Reserve balances with Federal Reserve Banks plus vault cash at institutions
with required reserve balances plus vault cash equal to required reserves at other
institutions.
6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required reserves. (This measure of excess reserves is
comparable to the old excess reserve concept published historically.)

A6
1.13

Domestic Financial Statistics □ July 1981
FEDERAL FUNDS AND REPURCHASE AGREEMENTS

Large Member Banksi

Averages of daily figures, in millions of dollars
1981, week ending Wednesday
By maturity and source
Apr. 29
One day and continuing contract
1 Commercial banks in United S tates................................
2 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies .
3 Nonbank securities dealers........... ...................................
4 All other......................................... ...................................

May 6

May 13

May 20

May 27r

June 3

June 10

June 17

June 24

49,914

52,324

49,016

45,222

44,392

46,911

50,831

50,506

47,880

13,021
3,166
20,316

13,716
3,265
19,922

12,875
2,816
19,090

13,812
2,561
19,403

13,651
2,768
19,708

14,048
3,250
19,942

14,878
3,000
20,339

15,463
2,375
21,159

16,955
2,919
21,219

All other maturities
5 Commercial banks in United S tates................................
6 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies .
7 Nonbank securities dealers........... ...................................
8 All other......................................... ...................................

3,520

3,524

3,639

3,788

3,467

3,516

3,715

3,734

4,077

7,247
4,390
10,403

7,064
4,435
10,143

7,365
4,780
10,497

7,591
5,183
10,549

7,434
5,200
10,643

7,492
5,139
10,880

7,239
4,968
11,550

7,120
5,126
11,216

7,137
5,125
10,582

Memo: Federal funds and resale agreement loans in ma­
turities of one day or continuing contract
9 Commercial banks in United S tates................................
10 Nonbank securities dealers...............................................

14,508
3,010

13,795
2,854

13,348
2,884

14,214
2,602

13,932
2,662

15,240
3,033

16,233
2,502

14,787
2,814

14,988
2,611

1. Banks with assets of $1 billion or more as of Dec. 31, 1977.




Policy Instruments
1.14

Al

FEDERAL RESERVE BANK INTEREST RATES
Percent per annum
Current and previous levels
Extended credit

Short-term
adjustment credit1
Federal Reserve
Bank

Seasonal credit

Emergency credit
to all others
under section 133

Special circumstances2

Rate on
6/30/81

Effective
date

Previous
rate

Rate on
6/30/81

Effective
date

Previous
rate

Rate on
6/30/81

Effective
date

Previous
rate

Rate on
6/30/81

Effective
date

Previous
rate

Boston.....................
New York...............
Philadelphia...........
Cleveland...............
Richmond...............
A tlanta...................

14
14
14
14
14
14

5/5/81
5/5/81
5/5/81
5/5/81
5/5/81
5/5/81

13
13
13
13
13
13

14
14
14
14
14
14

5/5/81
5/5/81
5/5/81
5/5/81
5/5/81
5/5/81

13
13
13
13
13
13

15
15
15
15
15
15

5/5/81
5/5/81
5/5/81
5/5/81
5/5/81
5/5/81

14
14
14
14
14
14

17
17
17
17
17
17

5/5/81
5/5/81
5/5/81
5/5/81
5/5/81
5/5/81

16
16
16
16
16
16

Chicago...................
St. Louis.................
Minneapolis...........
Kansas C ity ...........
D allas.....................
San Francisco.........

14
14
14
14
14
14

5/8/81
5/5/81
5/5/81
5/5/81
5/5/81
5/5/81

13
13
13
13
13
13

14
14
14
14
14
14

5/8/81
5/5/81
5/5/81
5/5/81
5/5/81
5/5/81

13
13
13
13
13
13

15
15
15
15
15
15

5/8/81
5/5/81
5/5/81
5/5/81
5/5/81
5/5/81

14
14
14
14
14
14

17
17
17
17
17
17

5/8/81
5/5/81
5/5/81
5/5/81
5/5/81
5/5/81

16
16
16
16
16
16

Range of rates in recent years4
Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

In effect Dec. 31, 1972.................
1973— Jan. 15............................
Feb. 26............................
Mar. 2............................
Apr. 23............................
Mfay 4............................
11............................
18............................
June 11............................
15............................
July 2............... .............
Aug. 14............................
23............................

4Vi
5
5-5 Vi
5Vi
5i/>-53
/4
53
/4
53
/4-6
6
6-6 Vi
6 Vi

AVl
5

7-71/2
7Vi

IV i
IV i

1974— Apr. 25............................
30............................
Dec. 9............................
16............................

7Vi-%

8
8
VA
VA

Effective date

1975— Jan.

6............................
10............................
24............................
Feb. 5............................
7............................
Mar. 10............................
14............................
May 16............................

1

8
73
/4-8
VA
IV a
IV a
IV a
&/A-1VA

63
/4
6V'4-63
/4
61/4
6-61/4

Range (or
level)—
All F.R.
Banks

Effective date

F.R.
Bank
of
N.Y.

Effective date

Range (or
level)—
All F.R.
Banks

1976— Jan. 19...................
23..................
Nov. 22..................
26...................

51/2-6
5Vi
51/4-5
51/4

5Vi
5Vi
5V a
5V a

1979— Sept. 19...................
21...................
Oct. 8...................
10...................

iote-11
11
11-12
12

11
11
12
12

53
/4
6
6
6V
S

1977_ Aug. 30...................
31...................
Sept. 2...................
Oct. 26...................

5!/4-53
/4
5!/4-53
/4
53
/4
6

5V a

53
/4
53
/4
6

6 V2
1

1978— Jan.

1980— Feb. 15...................
19...................
May 29...................
30...................
June 13...................
16...................
July 28...................
29...................
Sept. 26...................
Nov. 17...................
Dec. 5...................
8...................

12-13
13
12-13
12
11-12
11
10-11
10
11
12
12-13
13

13
13
13
12
11
11
10
10
11
12
13
13

1981— May
May

13-14
14

14
14

14

14

5Vi
5V i
5Vz

IV a
IV a
IV a

63
/4
63
/4
6V4
6Va

9..................
20..................
May 11...................
12..................
July 3...................
July 10...................
Aug. 21...................
Sept. 22...................
Oct. 16...................
20...................
Nov. 1...................
3..................

1979— July 20...................
Aug. 17...................
20...................

6

6-6 !'/1
6 V1
bVi - 1
1
1 -IV a
IV a

VA
8
8-81/2
81h

61A
61/2
7
7
IV a
IV a

VA
8
8Vi
81/2
91/2

8V z- 9 1
/2
9 Vi

9Vi

10
10-10V^
lOVi

5...................
8...................

10
10V4
1 V>
05
In effect June 30, 1981

1. Effective May 5, 1981, a 4 percent surcharge was applied to short-term ad­
justment credit borrowings by institutions with deposits or $500 million or more
who borrowed in successive weeks or in more than 4 weeks in a calendar quarter.
2. Applicable to advances when exceptional circumstances or practices involve
only a particular depository institution as described in section 201.3(b) (2) of Reg­
ulation A.
3. Applicable to emergency advances to individuals, partnerships, and corpo­
rations as described in section 201.3(c) of Regulation A.




F.R.
Bank
of
N.Y.

4. Rates for short-term adjustment credit. For description and earlier data see
the following publications of the Board of Governors: Banking and Monetary
Statistics, 1914-1941 and 1941-1970; Annual Statistical Digest, 1971-1975, 19721976, 1973-1977, and 1974-1978.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term ad­
justment credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than 4 weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. On Nov. 17, 1980, 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.

A8
1.15

Domestic Financial Statistics □ July 1981
DEPOSITORY INSTITUTIONS RESERVE REQUIREMENTS!
Percent of deposits

Type of deposit, and deposit interval
in millions of dollars

Member bank requirements
before implementation of the
Monetary Control Act

Type of deposit, and
deposit interval

Depository institution requirements
after implementation of the
Monetary Control A ct5

Effective date

Net transaction accounts6

Net demand2
0 -2 ...................................
2 - 1 0 .................................

7

10-100..........................

ll3
/4
123
/4

100-400..........................
Over 400........................

9Vi
16V4

12/30/76
12/30/76
12/30/76
12/30/76
12/30/76

Time and savings2,3

3

12

11/13/80
11/13/80

Nonpersonal time deposits7
By original maturity
Less than 4 years............
4 years or m o re..............

11/13/80
11/13/80

Eurocurrency liabilities
All types..........................

2Vi
1
6
2Vi
1

11/13/80

3/16/67
1/8/76
10/30/75
12/12/74
1/8/76
10/30/75

3

1. For changes in reserve requirements beginning 1963, see Board’s Annual
Statistical Digest, 1971-1975 and for prior changes, see Board’s Annual Report for
1976, table 13. Under provisions of the Monetary Control Act, depository insti­
tutions include commercial banks, mutual savings banks, savings and loan asso­
ciations, credit unions, agencies and branches of foreign banks, and Edge Act
corporations.
2. (a) Requirement schedules are graduated, and each deposit interval applies
to that part of the deposits of each bank. Demand deposits subject to reserve
requirements were gross demand deposits minus cash items in process of collection
ana demand balances due from domestic banks.
(b) The Federal Reserve Act as amended through 1978 specified different ranges
of requirements for reserve city banks and for other banks. Reserve cities were
designated under a criterion adopted effective Nov. 9,1972, by which a bank having
net demand deposits of more than $400 million was considered to have the character
of business of a reserve city bank. The presence of the head office of such a bank
constituted designation of that place as a reserve city. Cities in which there were
Federal Reserve Banks or branches were also reserve cities. Any banks having net
demand deposits of $400 million or less were considered to have the character of
business of banks outside of reserve cities and were permitted to maintain reserves
at ratios set for banks not in reserve cities.
(c) Effective Aug. 24, 1978, the Regulation M reserve requirements on net
balances due from domestic banks to their foreign branches and on deposits that
foreign branches lend to U.S residents were reduced to zero from 4 percent and
1 percent respectively. The Regulation D reserve requirement on borrowings from
unrelated banks abroad was also reduced to zero from 4 percent.
(d) Effective with the reserve computation period beginning Nov. 16, 1978,
domestic deposits of Edge corporations were subject to the same reserve require­
ments as deposits of member oanks.
3. (a) Negotiable order of withdrawal (NOW) accounts and time deposits such
as Christmas and vacation club accounts were subject to the same requirements as
savings deposits.
(b) The average reserve requirement on savings and other time deposits before
implementation of the Monetary Control Act had to be at least 3 percent, the
minimum specified by law.
4. (a) Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent
was imposed on large time deposits of $100,000 or more, obligations of affiliates,
and ineligible acceptances. This supplementary requirement was eliminated with
the maintenance period beginning July 24, 1980.




$0-$25 m illion....................
Over $25 million................

3/16/67

Savings..........................
Time4
0-5, by maturity
30-179 days ..........
180 days to 4 years
4 years or more . . .
Over 5, by maturity
30-179 days ..........
180 days to 4 years
4 years or m o re. . .

Effective date

(b) Effective with the reserve maintenance period beginning Oct. 25, 1979, a
marginal reserve requirement of 8 percent was added to managed liabilities in
excess of a base amount. This marginal requirement was increased to 10 percent
beginning Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and
was reduced to zero beginning July 24, 1980. Managed liabilities are defined as
large time deposits, Eurodollar borrowings, repurchase agreements against U.S.
government and federal agency securities, federal funds borrowings from non­
member institutions, and certain other obligations. In general, the base for the
marginal reserve requirement was originally the greater of (a) $100 million or (b)
the average amount of the managed liabilities held by a member bank, Edge
corporation, or family of U.S. branches and agencies of a foreign bank for the two
statement weeks ending Sept. 26,1979. For the computation period beginning Mar.
20,1980, the base was lowered by (a) 7 percent or (b) the decrease in an institution’s
U.S. office gross loans to foreigners and gross balances due from foreign offices
of other institutions between the base period (Sept. 13-26, 1979) and the week
ending Mar. 12,1980, whichever was greater. For the computation period beginning
May 29,1980, the base was increased by IVi percent above the base used to calculate
the marginal reserve in the statement week of May 14-21, 1980. In addition,
beginning Mar. 19, 1980, the base was reduced to the extent that foreign loans and
balances declined.
5. For existing nonmember banks and thrift institutions at the time of imple­
mentation of the Monetary Control Act, the phase-in period ends Sept. 3, 1987.
For existing member banks the phase-in period is about three years, depending on
whether their new reserve requirements are greater or less than the old require­
ments. For existing agencies and branches of foreign banks, the phase-in ends Aug.
12, 1982. All new in s t it u tio n s will have a t w o - y e a r p h a s e - in b e g in n in g with the date
that they open for business.
6. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment
orders of withdrawal, and telephone and preauthorized transfers (in excess of three
per month) for the purpose of making payments to third persons or others.
7. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which the beneficial interest is
held by a depositor that is not a natural person. Also included are certain trans­
ferable 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.
N o t e . Required reserves must be held in the form of deposits with Federal
Reserve Banks or vault cash. After implementation of the Monetary Control Act,
nonmembers may maintain reserves on a pass-through basis with certain approved
institutions.

Policy Instruments
1.16

A9

M A X IM U M IN T E R E S T R A T E S P A Y A B L E on Tim e and Savings D ep osits at Federally Insured Institutions
Percent per annum
Commercial banks

Type and maturity of deposit

In effect June 30, 1981

Previous maximum

Effective
date
1 Savings..................................................................................
2 Negotiable order of withdrawal accounts 2 ....................
Time accounts 3
Fixed ceiling rates by maturity 4
3
14-89 days 5 ......................................................................
4 90 days to 1 year..............................................................
5
1 to 2 years ' ....................................................................
6
2 to 2 Vi years 7 ................................................................
7 2Vi to 4 years 1 ................................................................
8 4 to 6 years 8 ....................................................................
9
6 to 8 years 8 ....................................................................
10 8 years or more 8 ............................................................
11
Issued to governmental units (all maturities) 10........
12 Individual retirement accounts and Keogh (H .R. 10)
plans (3 years or more) 10,n ..................................

51/4
51/4

8/1/79
1/1/80

6V2

71/4
IVi
73/4

Effective
date

7/1/73
1/1/74
5
51/2

7/1/73
11/1/73
12/23/74
6/1/78
6/1/78

51/2
53/4
53/4
(9)
71/4
6)
(6) .
73/4

6/1/78

73/4

7/1/73

In effect June 30, 1981

Effective
date

7/1/79
12/31/80

5V4
53/4

Savings and loan associations and
mutual savings banks

51/2

51/4

7/1/79
12/31/80

7/1/73
7/1/73
1/21/70
1/21/70
1/21/70

(6)
6

1/1/80

11/1/73
12/23/74 ’
7/6/77

6 Vi
63/4

IVi
73/4

0)
0)

11/1/73
12/23/74
6/1/78
6/1/78
6/1/78

Previous maximum
Percent

51/4
5

(6) .
53/4
53/4
6
6
(9)
IVi
(6) ,

73/4
73/4

Effective
date

0)

1/1/74

(0

1/21/70
1/21/70
1/21/70

ii/i /73
'12/23/7 4 '
7/6/77

Special variable ceiling rates by maturity
13
14

6-month money market time deposits i2......................
2 Vi years or m o re ............................................................

1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loan
associations.
2. For authorized states only, federally insured commercial banks, savings and
loan associations, cooperative banks, and mutual savings banks in Massachusetts
and New Hampshire were first permitted to offer negotiable order of withdrawal
(NOW) accounts on Jan. 1, 1974. Authorization to issue NOW accounts was ex­
tended to similar institutions throughout New England on Feb. 27, 1976, and in
New York State on Nov. 10, 1978, and in New Jersey on Dec. 28, 1979. A uthor­
ization to issue NOW accounts was extended to similar institutions nationwide
effective Dec. 31, 1980.
3. For exceptions with respect to certain foreign time deposits see the F e d e r a l
R e s e r v e B u l l e t i n for October 1962 (p. 1279), August 1965 (p. 1084), and Feb­
ruary 1968 (p. 167).
4. Effective Nov. 10, 1980, the minimum notice period for public unit accounts
at savings and loan associations was decreased to 14 days and the minimum maturity
period for time deposits at savings and loan associations in excess of $100,000 was
decreased to 14 days. Effective Oct. 30, 1980, the minimum maturity or notice
eriod for time deposits was decreased from 30 days to 14 days for mutual savings
anks.
5. Effective Oct. 30, 1980, the minimum maturity or notice period for time
deposits was decreased from 30 days to 14 days for commercial banks.
6. No separate account category.
7. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was
required for savings and loan associations, except in areas where mutual savings
banks permitted lower minimum denominations. This restriction was removed for
deposits maturing in less than 1 year, effective Nov. 1, 1973.
8. No minimum denomination. Until July 1, 1979, minimum denomination was
$1,000 except for deposits representing funds contributed to an Individual Retire­
ment Account (IRA) or a Keogh (H .R. 10) plan established pursuant to the Internal
Revenue Code. The $1,000 minimum requirement was removed for such accounts
in December 1975 and November 1976 respectively.
9. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for certificates
maturing in 4 years or more with minimum denominations of $1,000; however, the
amount of such certificates that an institution could issue was limited to 5 percent
of its total time and savings deposits. Sales in excess of that amount, as well as
certificates of less than $1,000, were limited to the 6 Vi percent ceiling on time
deposits maturing in 2Vi years or more.
Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing in 4
years or more with minimum denomination of $1,000. There is no limitation on
the amount of these certificates that banks can issue.
10. Accounts subject to fixed-rate ceilings. See footnote 8 for minimum denom­
ination requirements.
11. Effective January 1, 1980, commercial banks are permitted to pay the same
rate as thrifts on IRA and Keogh accounts and accounts of governmental units
when such deposits are placed in the new 2V^-year or more variable-ceiling certif­
icates or in 26-week money market certificates regardless of the level of the Treasury
bill rate.
12. Must have a maturity of exactly 26 weeks and a minimum denomination of
$10,000, and must be nonnegotiable.
13. Commercial banks, savings and loan associations, and mutual savings banks
were authorized to offer money market time deposits effective June 1, 1978. The
ceiling rate for commercial banks on money market time deposits entered into
before June 5, 1980, is the discount rate (auction average) on most recently issued
six-month U.S. Treasury bills. Until Mar. 15, 1979, the ceiling rate for savings and
loan associations and mutual savings banks was V4 percentage point higher than
'
the rate for commercial banks. Beginning March 15, 1979, the V^-percentage-point
interest differential is removed when the six-month Treasury bill rate is 9 percent
or more. The full differential is in effect when the six-month bill rate is 83 percent
/4

C




or less. Thrift institutions may pay a maximum 9 percent when the six-month bill
rate is between 83 and 9 percent. Also effective March 15, 1979, interest com­
/4
pounding was prohibited on six-month money market time deposits at all offering
institutions. The maximum allowable rates in June for commercial banks and thrift
institutions were as follows: June 2, 14.741; June 9, 14.250; June 16, 13.606; June
23, 14.189; June 30, 13.871. Effective for all six-month money market certificates
issued beginning June 5, 1980, the interest rate ceilings will be determined by the
discount rate (auction average) of most recently issued six-month U.S. Treasury
bills as follows-

Bill rate

Commercial bank ceiling

thrift ceiling

8.75 and above
bill rate + V percent
a
bill rate + V percent
4
8.50 to 8.75
bill rate + V\ percent
9.00
7.50 to 8.50
bill rate + l 4 percent
/
bill rate + Vi percent
7.25 to 7.50
7.75
bill rate + Vi percent
Below 7.25
7.75
7.75
The prohibition against compounding interest in these certificates continues.
14. Effective Jan. 1, 1980, commercial banks, savings and loan associations, and
mutual savings banks were authorized to offer variable-ceiling nonnegotiable time
deposits with no required minimum denomination and with maturities of 2Vi years
or more. The maximum rate for commercial banks is 3 percentage point below
A
the yield on 2Vi-year U.S. Treasury securities; the ceiling rate for thrift institutions
is V percentage point higher than that for commercial banks. Effective Mar. 1,
4
1980, a temporary ceiling of l l 3 percent was placed on these accounts at com­
/4
mercial banks; the temporary ceiling is 12 percent at savings and loan associations
and mutual savings banks. Effective for all variable-ceiling nonnegotiable time
deposits with maturities of 2 Vi years or more issued beginning June 2, 1980, the
ceiling rates of interest will be determined as follows:

Treasurv yield

Commercial bank ceiling

Thrift ceiling

12.00 and above
11.75
12.00
9.50 to 12.00
Treasury yield less V percent
4
Treasury yield
Below 9.50
9.25
9.50
Interest may be compounded on these time deposits. The ceiling rates of interest
at which these accounts may be offered vary biweekly. The maximum allowable
rates in June for commercial banks were as follows: June 9, 11.75; June 23, 11.75.
The maximum allowable rates in June for thrift institutions were as follows: June
9, 12.00; June 23, 12.00.
15. Between July 1, 1979, and Dec. 31, 1979, commercial banks, savings and
loan associations, and mutual savings banks were authorized to offer variable ceiling
accounts with no required minimum denomination and with maturities of 4 years
or more. The maximum rate for commercial banks was VA percentage points below
the yield on 4-year U.S. Treasury securities; the ceiling rate for thrift institutions
was l percentage point higher than that for commercial banks.
A
N o t e . Before Mar. 31, 1980, the maximum rates that could be paid by federally
insured commercial banks, mutual savings banks, and savings and loan associations
were established by the Board of Governors of the Federal Reserve System, the
Board of Directors of the Federal Deposit Insurance Corporation, and the Federal
Home Loan Bank Board under the provisions of 12 CFR 217, 329, and 526 re­
spectively. Title II of the Depository Institutions Deregulation and Monetary Con­
trol Act of 1980 (P.L. 96—
221) transferred the authority of the agencies to establish
maximum rates of interest payable on deposits to the Depository Institutions D e­
regulation Committee. The maximum rates on time deposits in denominations of
$100,000 or more with maturities of 30-89 days were suspended in June 1970; such
deposits maturing in 90 days or more were suspended in May 1973. For information
regarding previous interest rate ceilings on all types of accounts, see earlier issues
of the F e d e r a l R eserv e B u lle tin , the Federal Home Loan Bank Board Journal,
and the Annual Report of the Federal Deposit Insurance Corporation.

A10
1.17

Domestic Financial Statistics □ July 1981
F E D E R A L R E S E R V E O P E N M A R K E T T R A N S A C T IO N S
Millions of dollars
1980
Type of transaction

1978

1979

1981

1980
Nov.

Jan.

Dec.

Feb.

Mar.

Apr.

May

U.S. G overnment Securities
Outright transactions (excluding matched salepurchase transactions)

Treasury bills
1
2
3
4

Gross purchases......................................................
Gross sales..............................................................
Exchange ................................................................
R edem ptions..........................................................

16,628
13,725
0
2,033

15,998
6,855
0
2,900

7,668
7,331
0
3,389

0
600
0
500

1,331
0
0
49

1,100
3,865
0
1,000

0
357
0
0

1,607
0
0
0

1,141
0
0
0

790
0
0
0

1,184
0
-5,170
0

3,203
0
17,339
-11,308
2,600

912
0
12,427
-18,251
0

0
0
2,368
-8 7 9
0

100
0
754
-9 6 7
0

0
0
462
0
0

0
23
990
-1,936
0

0
0
878
-1,385
0

115
0
522
-2 6 1
0

0
0
2,900
-1,281
0

4,188
0
-1 7 8

2,148
0
-12,693
7,508

2,138
0
-8,909
13,412

0
0
-2,368
500

0
0
-7 5 4
967

0
0
-4 6 2
0

0
0
-9 9 0
1,211

0
0
-8 7 8
1,385

469
0
-5 2 2
261

0
0
-1 ,7 2 4
681

1,526
0

523
0
-4,646
2,181

703
0
-3,092
2,970

0
0
0
220

0
0
0
0

0
0
0
0

0
0
0
400

0
0
0
0

164
0
0
0

0
0
-1 ,1 7 6
300

1,063
0
2,545

454
0
0
1,619

811
0
-4 2 6
1,869

0
0
0
159

0
0
0
0

0
0
0
0

0
0
0
325

0
0
0
0

89
0
0
0

0
0
0
300

Others within 1 year1
5
6
7
8
9

Gross purchases......................................................
Gross sales..............................................................
Maturity shift..........................................................
Exchange ................................................................
R edem ptions..........................................................

1 to 5 years
10
11
12
13

Gross purchases......................................................
Gross sales..............................................................
Maturity shift..........................................................
Exchange ................................................................

5 to 10 years
14
15
16
17

Gross purchases......................................................
Gross sales..............................................................
Maturity shift..........................................................
Exchange ................................................................

2,803

Over 10 years
18
19
20
21

Gross purchases......................................................
Gross sales..............................................................
Maturity shift..........................................................
Exchange ................................................................

All maturities1
22
23
24

Gross purchases......................................................
Gross sales..............................................................
R edem ptions..........................................................

24,591
13,725
2,033

22,325
6,855
5,500

12,232
7,331
3,389

0
600
500

1,431
0
49

1,100
3,865
1,000

0
380
0

1,607
0
0

1,977
0
0

790
0
0

25
26

Matched transactions
Gross sales..............................................................
Gross purchases......................................................

511,126
510,854

627,350
624,192

674,000
675,496

40,944
41,129

79,754
78,734

61,427
63,062

30,819
31,651

32,003
30,441

37,251
37,295

45,658
43,492

27
28

Repurchase agreements
Gross purchases......................................................
Gross sales..............................................................

151,618
152,436

107,051
106,968

113,902
113,040

24,169
23,924

11,534
11,381

6,108
8,137

0
0

1,623
1,246

9,458
9,835

1,219
1,219

29 Net change in U.S. government securities............

7,743

6,896

3,869

-6 7 0

516

-4,159

452

422

1,644

-1 ,3 7 6

F ederal A gency O bligations
30
31
32

Outright transactions
Gross purchases......................................................
Gross sales..............................................................
R edem ptions..........................................................

301
173
235

853
399
134

668
0
145

0
0
0

0
0
22

0
0
0

0
0
3

0
0
15

0
0
2

0
0
*

33
34

Repurchase agreements
Gross purchases......................................................
Gross sales..............................................................

40,567
40,885

37,321
36,960

28,895
28,863

4,825
4,880

1,889
1,767

652
1,177

0
0

494
437

1,211
1,268

186
186

35 Net change in federal agency obligations..............

-4 2 6

681

555

-5 5

99

-5 2 5

42

-5 8

0

36 Outright transactions, n e t ........................................
37 Repurchase agreements, n e t....................................

0
-3 6 6

0
116

0
73

0
-4 3

0
253

0
-7 7 6

0
0

0
298

0
-2 9 8

0
0

38 Net change in bankers acceptances........................

-3 6 6

116

73

-4 3

253

-7 7 6

0

298

-2 9 8

0

6,951

7,693

4,497

-768

868

-5,460

450

762

1,287

-1,376

-3

B ankers A cceptances

39 Total net change in System Open Market

Account............................................................

1. Both gross purchases and redemptions include special certificates created
when the Treasury borrows directly from the Federal Reserve, as follows (millions
of dollars): March 1979, 2,600.




Note . Sales, redemptions, and negative figures reduce holdings of the System
Open Market Account; all other figures increase such holdings. Details may not
add to totals because of rounding.

Reserve Banks
1.18

FEDERAL RESERVE BANKS

A ll

Condition and Federal Reserve Note Statements

Millions of dollars
Wednesday
1981

Account
May 27

June 3

End of month
1981

June 10

June 17

June 24

Apr.

May

June

Consolidated condition statement
A ssets
11,154
2,818
391

11,154
2,818
378

11,154
2,818
382

11,154
2,818
388

11,154
2,818
397

11,154
2,818
412

11,154
2,818
396

11,154
3,068
380

1,851
0

5,742
0

3,613
0

6,357
0

1,803
0

2,333
0

1,366
0

1,010
0

1 Gold certificate account........................................................
2 Special drawing rights certificate account..........................
3 C oin..........................................................................................
Loans
4 To depository institutions................................................
5
O ther....................................................................................
Acceptances
6
Held under repurchase agreem ents................................
Federal agency obligations
7 Bought outright..................................................................
8
Held under repurchase agreem ents................................
U.S. government securities
Bought outright
9
B ills..................................................................................
10
N otes................................................................................
11
B o n d s..............................................................................
12
Total i ..............................................................................
13 Held under repurchase agreem ents................................
14 Total U.S. government securities........................................

0

0

0

0

0

0

0

0

8,720
0

8,720
0

8,707
0

8,707
0

8,707
0

8,720
0

8,720
0

8,694
0

40,769
58,818
17,606
117,193
0
117,193

44,951
58,818
17,606
121,375
0
121,375

40,325
58,818
17,606
116,749
0
116,749

44,922
58,818
17,606
121,346
0
121,346

42,936
58,818
17,606
119,360
0
119,360

43,263
59,118
17,306
119,687
0
119,687

41,887
58,818
17,606
118,311
0
118,311

43,593
58,818
17,606
120,017
0
120,017

15 Total loans and securities...................................................

127,764

135,837

129,069

136,410

129,870

130,740

128,397

129,721

16 Cash items in process of collection....................................
17 Bank prem ises........................................................................
Other assets
18 Denominated in foreign currencies2 ..............................
19 All oth e r..............................................................................

11,963
470

11,113
470

9,318
471

11,256
472

11,270
474

9,224
467

9,096
470

11,297
475

6,858
2,640

6,412
2,640

6,468
2,636

6,494
3,559

6,496
3,491

6,768
3,321

6,412
2,719

6,430
3,802

20 Total assets.........................................................................

164,058

170,822

162,316

172,551

165,970

164,904

161,462

166,327

L iabilities
21 Federal Reserve n o te s ..........................................................
Deposits
Depository institutions......................................................
U.S. Treasury—General account....................................
Foreign—Official acco u n ts..............................................
O ther....................................................................................

123,962

123,978

124,695

124,444

124,246

121,852

123,251

124,783

22
23
24
25

24,084
2,880
299
245

31,586
4,127
186
441

25,011
2,391
238
400

30,951
5,215
196
435

26,122
2,909
237
284

26,063
4,460
476
311

24,304
2,288
346
275

23,626
2,923
338
536

26 Total deposits.....................................................................

27,508

36,340

28,040

36,797

29,552

31,310

27,213

27,423

27 Deferred availability cash item s..........................................
28 Other liabilities and accrued dividends3 ............................

7,881
1,965

6,280
1,677

5,241
1,615

6,596
1,956

6,955
2,455

7,068
1,97*

6,554
1,744

8,791
2,387

29 Total liabilities...................................................................

161,316

168,275

159,591

169,793

163,208

162,201

158,762

163,384

30 Capital paid in ........................................................................
31 S urplus....................................................................................
32 Other capital accounts..........................................................

1,237
1,203
302

1,235
1,203
109

1,237
1,203
285

1,244
1,203
311

1,246
1,203
313

1,233
1,203
267

1,238
1,203
259

1,246
1,203
494

33 Total liabilities and capital accounts................................

164,058

170,822

162,316

172,551

165,970

164,904

161,462

166,327

34 M emo : Marketable U.S. government securities held in
custody for foreign and international account..........

97,516

96,536

97,410

95,853

95,846

100,546

96,635

97,549

C apital A ccounts

Federal Reserve note statement
143,959
19,997
123,962

144,094
20,116
123,978

144,091
19,396
124,695

144,354
19,910
124,444

144,704
20,458
124,246

143,716
21,864
121,852

143,936
20,685
123,251

145,062
20,279
124,783

Gold certificate account....................................................
Special drawing rights certificate account......................
Other eligible assets..........................................................
U.S. government and agency securities........................

11,154
2,818
9
109,981

11,154
2,818
0
110,006

11,154
2,818
109
110,614

11,154
2,818
0
110,472

11,154
2,818
0
110,274

11,154
2,818
0
107,880

11,154
2,818
0
109,279

11,154
3,068
27
110,534

42 Total collateral....................................................................

123,962

123,978

124,695

124,444

124,246

121,852

123,251

124,783

35 Federal Reserve notes outstanding (issued to bank) . . . .
36
Less-held by bank4 ........................................................
37
Federal Reserve notes, n e t..........................................

Collateral for Federal Reserve notes
38
39
40
41

1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Includes U.S. government securities held under repurchase agreement against
receipt of foreign currencies and foreign currencies warehoused for the U.S. Treas­
ury. Assets shown in this line are revalued monthly at market exchange rates.




3. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
4. Beginning September 1980, Federal Reserve notes held by the Reserve Bank
are exempt from the collateral requirement.

A12

Domestic Financial Statistics □ July 1981

1.19 FEDERAL RESERVE BANKS
Millions of dollars

Maturity Distribution of Loan and Security Holdings

Wednesday
1981

Type and maturity groupings
May 27

June 3

End of month
1981

June 10

June 17

June 24

Apr. 30

May 31

June 30

1 Loans—Total.....................................................................
2 Within 15 days................................................................
3 16 days to 90 days..........................................................
4 91 days to 1 year............................................................

1,851
1,810
41
0

5,742
5,592
150
0

3,613
3,481
132
0

6,357
6,245
109
3

1,803
1,769
34
0

2,333
1,905
428
0

1,366
1,317
49
0

1,010
964
46
0

5 Acceptances—T o tal..........................................................
6 Within 15 days................................................................
7 16 days to 90 days..........................................................
8 91 days to 1 year............................................................

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

9 U.S. government securities—T o tal..................................
10 Within 15 days1..............................................................
11 16 days to 90 days..........................................................
12 91 days to 1 year............................................................
13 Over 1 year to 5 years..................................................
14 Over 5 years to 10 years...............................................
15 Over 10 years.................................................................

117,193
2,923
20,442
30,774
34,297
13,042
15,715

121,375
6,294
21,666
30,309
34,349
13,042
15,715

116,749
5,450
17,704
30,489
34,349
13,042
15,715

121,346
5,754
23,092
29,394
34,349
13,042
15,715

119,360
3,617
21,843
30,794
34,349
13,042
15,715

119,687
2,098
21,291
31,983
34,981
13,918
15,416

118,311
3,162
21,552
30,543
34,297
13,042
15,715

120,017
1,714
23,875
31,742
33,928
13,042
15,716

16 Federal agency obligations—Total....................................
17 Within 15 days1..............................................................
18 16 days to 90 days..........................................................
19 91 days to 1 year............................................................
20 Over 1 year to 5 years...................................................
21 Over 5 years to 10 years...............................................
22 Over 10 years.................................................................

8,720
178
471
1,853
4,593
982
643

8,720
88
533
1,867
4,607
982
643

8,707
0
533
1,912
4,636
982
644

8,707
217
449
1,779
4,636
982
644

8,707
217
449
1,779
4,636
982
644

8,720
69
615
1,752
4,658
982
644

8,720
178
471
1,853
4,593
982
643

8,694
207
446
1,779
4,636
982
644

1. Holdings under repurchase agreements are classified as maturing within 15
days in accordance with maximum maturity of the agreements.

1.20 BANK DEBITS AND DEPOSIT TURNOVER
Debits are shown in billions of dollars, turnover as ratio of debits to deposit. Monthly data are at annual rates.
1981
Bank group, or type of customer

1978

1979
Jan.

Feb.

Mar.

Apr.

May

73,621.7
29.501.3
44.120.4

74.800.5
29,610.9
45.189.6

815.4
112.4
590.1
1,517.9

693.3
518.3
1,323.6

257.2
1,001.9
171.8

260.9
975.1
176.3

15.2

13.5
11.7
3.3
6.0

Debits to demand deposits1 (seasonally adjusted)
1 All commercial banks...........
2 Major New York City banks
3 Other banks..........................

40,297.8
15,008.7
25,289.1

49,775.0
18,512.7
31,262.3

63.013.4
25.192.5
37,820.9

72.402.3
29,656.0
42.746.3

73,174.6
29,752.0
43,422.5

75.487.3
30,276.0
45.211.3

Debits to sa\rings deposits 2 (not seasonsilly adjusted)
4
5
6
7

ATS/NOW 3
Business4 ...
Others5___
All accounts

17.1
56.7
359.7
432.9

83.3
77.3
515.2
675.8

158.4
93.4
605.3
857.2

529.3
108.2
685.7
1,323.2

526.6
93.4
553.1
1,173.1

668.7
112.8

556.8
1,338.3

112.0

Demand deposit turnover1 (seasonally adjusted)
8 All commercial banks...........
9 Major New York City banks
10 Other banks..........................

139.4
541.9
96.8

163.5
646.2
113.3

201.6

813.7
134.3

244.6
956.2
161.3

253.6
952.6
168.7

262.9
959.5
176.9

Savings deposit turnover2 (not seasonally adjusted)
11
12
13
14

ATS/NOW3
Business4__
Others*. . . .
All accounts

7.0
5.1
1.7
1.9

1. Represents accounts of individuals, partnerships, and corporations, and of
states and political subdivisions.
2. Excludes special club accounts, such as Christmas and vacation clubs.
3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts
authorized for automatic transfer to demand deposits (ATS). ATS data availability
starts with December 1978.
4. Represents corporations and other profit-seeking organizations (excluding
commercial banks but including savings ana loan associations, mutual savings banks,
credit unions, the Export-Import Bank, and federally sponsored lending agencies).
5. Savings accounts other than NOW; business; and, from December 1978, ATS.




7.8
7.2
2.7
3.1

9.7
9.3
3.4
4.2

15.1
10.9
4.1
6.3

12.5
9.8
3.4
5.5

14.2
11.3
3.5
6.1

11.6

3.6
6.7

N o t e . Historical data for the period 1970 through June 1977 have been estimated;
these estimates are based in part on the debits series for 233 SMSAs, which were
available through June 1977. Back data are available from Publications Services,
Division of Administrative Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551. Debits and turnover data for savings deposits
are not available before July 1977.

Monetary Aggregates
1.21

A 13

MONEY STOCK MEASURES AND COMPONENTS
Billions of dollars, averages of daily figures
1977
Dec. r

1978
D ec.'

1979
Dec. r

1981

1980
Dec. r
Jan. T

Feb. r

M ar.'

Apr. r

May

Seasonally adjusted
M easures 1

1
2
3
4
5

M l-A.............................................................................
M l-B .............................................................................
M 2................................................................................
M 3................................................................................
L2..................................................................................

6
7
8
9
10
11

Currency.......................................................................
Demand deposits..........................................................
Travelers checks3 ........................................................
Savings deposits............................................................
Small-denomination time deposits4 ............................
Large-denomination time deposits5 ............................

331.4
336.4
1,296.4
1,462.5
1,722.7

354.8
364.2
1,404.2
1,625.7
1,936.5

372.7
390.5
1,525.2
1,775.1
2,151.1

387.7
415.6
1,669.4
1,963.5
2,377.4

375.1
419.2
1,680.8
1,988.3
2,408.1

367.2
421.2
1,695.7
2,007.9
2,431.2

365.8
425.8
1,718.4
2,025.9
2,442.3

366.6
433.7
1,737.8
2,044.3
n.a.

364.9
431.5
1,743.7
2,059.8
n.a.

88.6
239.7
3.1
486.5
453.8
145.1

97.4
253.9
3.5
475.5
533.3
194.0

106.1
262.8
3.8
416.5
652.7
219.7

116.1
267.4
4.2
393.0
756.8
256.8

116.6
254.4
4.2
376.9
775.7
268.0

117.2
245.8
4.2
370.8
783.3
273.9

117.9
243.5
4.4
368.3
789.4
271.0

118.9
243.1
4.6
367.0
790.0
269.5

119.8
240.7
4.4
361.0
798.6
278.6

Components

Not seasonally adjusted
Measures1
12
13
14
15
16

M l-A ..................................................................................
M l-B ..................................................................................
M 2 ......................................................................................
M 3 ......................................................................................
L2........................................................................................

17
18
19
20
21
22
23
24
25

Currency............................................................................
Demand deposits..............................................................
Travelers checks3 ............................................................
Other checkable deposits6 ..............................................
Overnight RPs and Eurodollars7 ..................................
Money market mutual funds..........................................
Savings deposits................................................................
Small-denomination time deposits4 ..............................
Large-denomination time deposits5 ..............................

340.1
345.1
1,299.0
1,467.7
1,726.7

364.2
373.6
1,409.0
1,634.6
1,943.6

382.5
400.6
1,531.3
1,785.5
2,158.8

397.7
425.9
1,675.2
1,974.0
2,384.0

378.9
423.5
1,683.6
1,993.9
2,411.0

358.7
411.5
1,685.1
1,999.8
2,424.3

358.9
417.8
1,713.3
2,023.5
2,443.1

369.5
436.7
1,745.4
2,050.8
n.a.

359.4
424.4
1,737.7
2,052.8
n.a.

90.3
247.0
2.9
5.0
18.6
3.8
483.1
451.3
147.7

99.4
261.5
3.3
9.4
23.9
10.3
472.6
531.7
198.1

108.3
270.8
3.5
18.2
25.4
43.6
413.9
651.4
223.9

118.4
275.4
3.9
28.3
32.4
75.8
390.2
755.2
261.4

115.7
259.2
4.0
44.8
32.7
80.7
374.2
776.9
270.8

115.8
238.9
4.0
53.0
31.9
92.4
365.6
787.7
276.3

116.8
237.9
4.2
59.2
33.2
105.6
365.7
794.8
273.8

118.4
246.8
4.3
67.5
34.0
117.1
366.4
795.2
268.3

119.3
235.9
4.2
65.3
38.5
118.1
359.6
801.1
277.7

Components

1. Composition of the money stock measures is as follows:
Ml-A: Averages of daily figures for (1) demand deposits at all commercial banks
other than those due to domestic banks, the U.S. government, and foreign banks
and official institutions less cash items in the process of collection and Federal
Reserve float; (2) currency outside the Treasury, Federal Reserve Banks, and the
vaults of commercial banks; and (3) travelers checks of nonbank issuers.
Ml-B: Ml-A plus negotiable order of withdrawal (NOW) and automatic transfer
service (ATS} accounts at banks and thrift institutions, credit union share draft
accounts, ana demand deposits at mutual savings banks.
M2: Ml-B plus savings and small-denomination time deposits at all depository
institutions, overnight repurchase agreements at commercial banks, overnight Eu­
rodollars held by U.S. residents other than banks at Caribbean branches of member
banks, and money market mutual fund shares.
M3: M2 plus large-denomination time deposits at all depository institutions and
term RPs at commercial banks and savings and loan associations.
2. L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents
other than banks, bankers acceptances, commercial paper, Treasury bills and other
liquid Treasury securities, and U.S. savings bonds.
3. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank
issuers.




4. Small-denomination time deposits are those issued in amounts of less than
$100,000 .

5. Large-denomination time deposits are those issued in amounts of $100,000
or more and are net of the holdings of domestic banks, thrift institutions, the U.S.
government, money market mutual funds, and foreign banks and official institu­
tions.
6. Includes ATS and NOW balances at all institutions, credit union share draft
balances, and demand deposits at mutual savings banks.
7. Overnight (and continuing contract) RPs are those issued by commercial
banks to the nonbank public, and overnight Eurodollars are those issued by Ca­
ribbean branches of member banks to U.S. nonbank customers.
N ote . Latest monthly and weekly figures are available from the Board’s H.6(508)
release. Back data are available from the Banking Section, Division of Research
and Statistics. The monetary aggregates and their components have been revised
due to benchmark revisions made on June 26, 1981; for more information see H.6
statistical release, June 26, 1981, or “Announcements,” this B ulletin .

A14
1.22

Domestic Financial Statistics □ July 1981
A G G R E G A T E R E S E R V E S O F D E P O S IT O R Y IN ST IT U T IO N S A N D M E M B E R B A N K D E P O S IT S 1
Billions of dollars, averages of daily figures

Item

1978
Dec.

1979
Dec.

1980

1980
Dec.
Oct.

Nov.2

1981
Dec.

Jan.

Feb.

Mar.

Apr.

May

Seasonally adjusted
1 Total reserves*...........................................................................

41.16

43.46

40.13

41.73

41.23

40.13

40.10

39.76

40.25

40.25

40.81

2 Nonborrowed reserves..............................................................
3 Required reserves.....................................................................
4 Monetary base4 .........................................................................

40.29
40.93
142.2

41.98
43.13
153.7

38.44
39.58
159.8

40.42
41.52
160.9

39.17
40.73
160.7

38.44
39.58
159.8

38.71'39.56
160.1

38.45
39.57
160.6

39.25
39.87
161.3

38.91
40.10
162.2

38.58
40.55
163.6

5 Member bank deposits subject to reserve requirements*.......
6 Time and savings.......................................................................
Demand
7 Private....................................................................................
8 U.S. government...................................................................

616.1
428.7

644.5
451.2

701.8
485.6

684.7
485.5

694.3
475.4

701.8
485.6

703.8
517.5

704.3
523.4

703.4
524.7

711.2
531.1

715.0
538.1

185.1
2.2

191.5
1.8

196.0
1.9

195.6
2.4

198.1
2.2

196.0
1.9

184.1
2.3

178.8
2.1

176.7r
2.0

177.4
2.8

174.7
2.2

Not seasonally adjusted
9 Monetary base4 .........................................................................

144.6

156.2

162.5

160.6

161.5

162.5

161.0

158.9

159.6

161.7

162.7

10 Member bank deposits subject to reserve requirements*.......

624.0

652.7

710.3

684.2

694.6

710.3

712.6

701.5

702.9

713.5

710.0

11 Time and savings.......................................................................
Demand
Private....................................................................................
U.S. government...................................................................

429.6

452.1

486.5

485.7

493.0

505.0

520.6

524.9

527.8

531.6

538.1

191.9
2.5

198.6
2.0

203.2
2.1

196.4
2.1

199.6
1.9

203.3
2.1

189.9
2.1

174.5
2.0

173.0
2.1

178.9
3.0

169.8
2.1

12
13

1.
Reserves of depository institutions series reflect actual reserve requirement
rcentages with no adjustment to eliminate the effect of changes in Regulations
and M. Before Nov. 13, 1980, the date of implementation of the Monetary
Control Act, only the reserves of commercial banks that were members of the
Federal Reserve System were included in the series. Since that date the series
include the reserves of all depository institutions. In conjunction with the imple­
mentation of the act, required reserves of member banks were reduced about $4.3
billion and required reserves of other depository institutions were increased about
$1.4 billion. Effective Oct. 11, 1979, an 8 percentagepoint marginal reserve re­
quirement was imposed on “Managed Liabilities.” This action raised required
reserves about $320 million. Effective Mar. 12, 1980, the 8 percentage point mar­
ginal reserve requirement was raised to 10 percentage points. In addition the base
upon which the marginal reserve requirement was calculated was reduced. This
action increased required reserves about $1.7 million in the week ending Apr. 2,
1980. Effective May 29, 1980, the marginal reserve requirement was reduced from
10 to 5 percentage points and the base upon which the marginal reserve requirement
was calculated was raised. This action reduced required reserves about $980 million
in the week ending June 18, 1980. Effective July 24, 1980, the 5 percent marginal
reserve requirement on managed liabilities and the 2 percent supplementary reserve
requirement against large time deposits were removed. These actions reduced
required reserves about $3.2 billion.




2. Reserve measures for November reflect increases in required reserves asso­
ciated with the reduction of weekend avoidance activities of a few large banks.
The reduction in these activities lead to essentially a one-time increase in the
average level of required reserves that need to be held for a given level of deposits
entering the money supply. In November, this increase in required reserves is
estimated at $550 million to $600 million.
3. Reserve balances with Federal Reserve Banks plus vault cash at institutions
with required reserve balances plus vault cash equal to required reserves at other
institutions.
4. Includes reserve balances at Federal Reserve Banks in the current week plus
vault cash held two weeks earlier used to satisfy reserve requirements at all
depository institutions plus currency outside the U.S. Treasury, Federal Reserve
Banks, the vaults of depository institutions, and surplus vault cash at depository
institutions.
5. Includes total time and savings deposits and net demand deposits as defined
by Regulation D. Private demand deposits include all demand deposits except
those due to the U.S. government, less cash items in process of collection and
demand balances due from domestic commercial banks.
N o t e . Latest monthly and weekly figures are available from the Board’s H.3(502)
statistical release. Back data and estimates of the impact on required reserves and
changes in reserve requirements are available from the Banking Section, Division
of Research and Statistics.

Monetary Aggregates
1.23

LOANS AND SECURITIES

A15

All Commercial Banks >

Billions of dollars; averages of Wednesday figures
1981
Category

1978
Dec.

1979
Dec.

1981

1980
Dec.

1978
Dec.
Apr.

1 Total loans and securities2 ..............................

1,013.4^

1,134.6-*

1,237.3s

93.3
173.23
746.93
246.16
210.5
164.7
19.3
27.18
28.2
7.5
43.63

93.8
191.8
848.94
291.I 4
241.34
184.9
18.6
28.84
31.1
9.3
44.0

110.7
213.9
912.75
324.95
260.65
175.2
17.6
28.75
31.6
10.9
63.4

Memo:
13 Total loans and securities plus loans sold2-9 .

1,017.P

14 Total loans plus loans sold2’9 ........................
15 Total loans sold to affiliates9 ........................
16 Commercial and industrial loans plus loans
sold9............................................................
17 Commercial and industrial loans sold9 . . .
18 Acceptances h e l d ........................................
19 Other commercial and industrial loans. . .
20
To U.S. addressees12..............................
21
To non-U.S. addressees..........................
22 Loans to foreign b a n k s ..................................

Apr.




May

Not seasonally adjusted

1,267.0
115.3
217.6
934.2
333. Vr
268.3
174.5
19.7
28.8
31.9
12.0'
65.8

1,279.3

1,022.53

1,145.(H

1,248.95

117.7
218.6
943.0
335.0
270.4
173.9
20.0
29.3
32.1
12.1
70.2

94.5
173.93
754.23
247.76
210.9
165.6
20.6
27.68
28.1
7.5
46.23

95.0
192.6
857.44
293.04
241.84
186.0
19.8
29.34
30.9
9.3
47.3

112.1
214.8
922.15
327.05
261.15
176.2
18.8
29.25
31.4
10.9
67.5

1,282.1

1,026.23

1,148.04 io

1,251.65

1,268.3

1,278.9

860.44-io
3.08-10

924.85
2.7

931.4
2.7

941.4
2.8

295.04-io
2.010
9.1
283.9
264.1
19.8
20.0

328.85
1.8
8.8
318.2
295.2
23.0
24.9

335.67
1.9
9.3
324.4
298.9
25.5
22.1

337.7
1.9
9.1
326.7
302.1
24.7
22.9

1,137.6410

1,240.05

750.63
3.7

851.94 10
3.08' ,0

915.55
2.7

936.9
2.7

945.8
2.8

757.93
3.7

248.06.il
1.911
6.6
239.5
226.0
13.5
21.5

293.14-io
2.010
8.2
282.9
264.1
18.8
18.5

326.65
1.8
8.1
316.7
295.2
21.5
23.2

334.97
1.9
9.6
323.5
297.8
25.7
22.8

336.9
1.9
9.4
325.6
300.7
24.9
23.7

249.66.li
1.911
7.3
240.4
225.9
14.5
23.2

1. Includes domestically chartered banks; U.S. branches and agencies of foreign
banks, New York investment companies majority owned by foreign banks, and
Edge Act corporations owned by domestically chartered and foreign banks.
2. Excludes loans to commercial banks in the United States.
3. As of Dec. 31, 1978, total loans and securities were reduced by $0.1 billion.
“Other securities” were increased by $1.5 billion and total loans were reduced by
$1.6 billion largely as the result of reclassifications of certain tax-exempt obligations.
Most of the loan reduction was in “all other loans.”
4. As of Jan. 3, 1979, as the result of reclassifications, total loans and securities
and total loans were increased by $0.6 billion. Business loans were increased by
$0.4 billion and real estate loans by $0.5 billion. Nonbank financial loans were
reduced by $0.3 billion.
5. Absorption of a nonbank affiliate by a large commercial bank added the
following to February figures: total loans and securities, $1.0 billion; total loans
and leases, $1.0 billion; commercial and industrial loans, $.5 billion; real estate
loans, $.1 billion; nonbank financial, $.1 billion.
6. As of Dec. 31,1978, commercial and industrial loans were reduced $0.1 billion
as a result of reclassifications.
7. An accounting procedure change by one bank reduced commercial and in­
dustrial loans by $0.1 billion as of Apr. 1, 1981.

1980
Dec.

May

Seasonally adjusted

2 U.S. Treasury securities..................................
3 Other securities................................................
4 Total loans and leases2....................................
5 Commercial and industrial lo a n s..............
6
Real estate loans..........................................
7 Loans to individuals....................................
8 Security loans................................................
9 Loans to nonbank financial institutions ..
10 Agricultural lo an s........................................
11
Lease financing receivables........................
12 All other loans..............................................

1979
Dec.

1,269.7'

1,265.6
118.9
218.0
928.7
333.77
267.0
172.3
19.4
28.4
31.5
12.0'
64.4

1,276.1
118.4
219.0
938.7
335.8
269.3
172.5
19.1
29.1
32.0
12.1
68.8

8. As of Dec. 1, 1978, nonbank financial loans were reduced $0.1 billion as the
result of reclassification.
9. Loans sold are those sold outright to a bank’s own foreign branches, non­
consolidated nonbank affiliates of the bank, the bank’s holding company (if not a
bank), and nonconsolidated nonbank subsidiaries of the holding company.
10. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million and
commercial and industrial loans sold were reduced $700 million due to corrections
of two banks in New York City.
11. As of Dec. 31, 1978, commercial and industrial loans sold outright were
increased $0.7 billion as the result of reclassifications, but $0.1 billion of this amount
was offset by a balance sheet reduction of $0.1 billion as noted above.
12. United States includes the 50 states and the District of Columbia.
N o t e . Data are prorated averages of Wednesday estimates for domestically
chartered banks, based on weekly reports of a sample of domestically chartered
banks and quarterly reports of all domestically chartered banks. For foreign related
institutions, data are averages of month-end estimates based on weekly reports
from large agencies and branches and quarterly reports from all agencies, branches,
investment companies, and Edge Act corporations engaged in banking.

A16
1.24

Domestic Financial Statistics □ July 1981
MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS *
Monthly averages, billions of dollars
December outstanding

Outstanding in 1980 and 1981

Source
1977

1
2
3
4
5
6

Total nondeposit funds
Seasonally adjusted2 .......................................
Not seasonally adjusted....................................
Federal funds, RPs, and other borrowings from
non-banks3
Seasonally adjusted.........................................
Not seasonally adjusted....................................
Net balances due to foreign-related institutions,
not seasonally adjusted................................
Loans sold to affiliates, not seasonally
adjusted4,5....................................................

1978

1979

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

61.5
60.1

91.2
90.2

121.1
119.8

114.0
114.5

119.9
120.8

116.9
120.1

120.5
119.9

124.7'
122.2

122.3'
121.5'

117.5'
117.2'

112.0'
111.6'

118.5
122.9

58.4
57.0

80.7
79.7

90.0
88.7

102.2
102.7

105.7
106.6

105.4
108.6

109.6
109.0

113.6'
111.1

110.9'
110.2'

110.7'
110.5'

109.6'
109.2'

106.8
111.2

-1.5

6.8

28.1

8.9

11.4

8.9

8.2

8.3

8.5

4.0

- .3

8.9

4.7

3.7

3.0

2.9

2.8

2.6

2.7

2.8

2.8

2.8

2.7

2.8

-12.5
21.1
8.6

-10.2
24.9
14.7

6.5
22.8
29.3

-14.5
38.2
23.7

-12.9
38.3
25.5

-14.2
37.3
23.1

-14.7
37.5
22.8

-16.2
37.5
21.2

-14.7
36.4
21.7

-16.9
38.9
22.0

-2 1 .2 '
43.3'
22.1'

-13.4
44.3
30.9

10.9
10.7
21.7

17.0
14.3
31.3

21.6
28.9
50.5

23.3
30.3
53.6

24.3
30.8
55.2

23.1
31.0
54.1

22.9
32.5
55.4

24.5
31.4
55.9

23.2
31.7
54.9

20.9
31.7
52.6

20.9'
33.5'
54.4'

22.3
34.7
57.0

36.0
35.1

44.8
43.6

49.2
47.9

56.2
58.7

59.7
59.5

58.8
60.9

63.4
61.7

68.7
65.0

67.0
65.2

67.1
65.8

67.0
65.6

64.4
67.7

4.4
5.1

8.7
10.3

8.9
9.7

11.0'
13.8'

11.5'
12.6'

8.1'
6.7'

8.4'
9.0'

6.9'
8.0'

8.2'
8.1'

11.7'
10.3'

12.3'
12.1'

14.2
12.4

162.0
165.4

213.0
217.9

227.1
232.8

244.7'
241.0'

247.8'
246.8'

254.9'
257.9'

265.8'
272.4'

277.0'
282.0'

282.5'
287.0'

281.1'
285.9'

284.3'
283.7'

294.8
293.6

Memo

7 Domestically chartered banks net positions with
own foreign branches, not seasonally
adjusted6 ......................................................
8 Gross due from balances..................................
9 Gross due to balances.....................................
10 Foreign-related institutions net positions with
directly related institutions, not seasonally
adjusted7 ......................................................
11 Gross due from balances..................................
12 Gross due to balances.....................................
13
14
15
16
17
18

Security RP borrowings
Seasonally adjusted*.......................................
Not seasonally adjusted....................................
U.S. Treasury demand balances9
Seasonally adjusted.........................................
Not seasonally adjusted....................................
Time deposits, $100,000 or more™
Seasonally adjusted.........................................
Not seasonally adjusted....................................

1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks, New
York investment companies majority owned by foreign banks, and Edge Act cor­
porations owned by domestically chartered and foreign banks.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. In­
cludes averages of Wednesday data for domestically chartered banks and averages
of current and previous month-end data for foreign-related institutions.
3. Other borrowings are borrowings on any instrument, such as a promissory
note or due bill, given for the purpose of borrowing money for the banking business.
This includes borrowings from Federal Reserve Banks and from foreign banks,
term federal funds, overdrawn due from bank balances, loan RPs, and participa­
tions in pooled loans. Includes averages of daily figures for member banks and
averages of current and previous month-end data for foreign-related institutions.
4. Loans initially booked by the bank and later sold to affiliates that are still
held by affiliates. Averages of Wednesday data.




5. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million due to
corrections of two New York City banks.
6. Averages of daily figures for member and nonmember banks. Before October
1980 nonmember banks were interpolated from quarterly call report data.
7. Includes averages of current and previous month-end data until August 1979;
beginning September 1979 averages oi daily data.
8. Based on daily average data reported by 122 large banks beginning February
1980 and 46 banks before February 1980.
9. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
10. Averages of Wednesday figures.
N ote. Movement of federal funds, RPs, and other borrowings from nonbanks
(lines 3 and 4) is based on fluctuations in security RP borrowings (lines 13 and 14)
and borrowings from unaffiliated foreign sources (not shown) after October 1980.
U.S. Treasury demand balances (lines 15 and 16) and time deposits of $100,000
or more (lines 17 and 18) have revised beginning July 1980 to reflect benchmarking
to the June, September and December 1980 call reports.

Commercial Banks
1.25

ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS

A17

Last-Wednesday-of-Month Series

Billions of dollars except for number of banks
1980

1981

Account
Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.'

Apr.

May

June

D omestically Chartered
Commercial B anks1
1 Loans and securities, excluding
interbank............................................
2 Loans, excluding interbank......................
3 Commercial and industrial..................
4 Other........................................................
5 U.S. Treasury securities............................
6 Other securities..........................................

1,108.5
801.9
259.5
542.4
101.4
205.2

1,117.9
809.1
263.9
545.2
103.2
205.6

1,134.8
821.6
269.0
552.6
104.4
208.9

1,150.8
832.8
275.7
557.1
107.1
210.9

1,177.1
851.4
281.5
569.9
111.2
214.6

1,166.0
840.2
277.6
562.6
112.0
213.8

1,167.0
839.0
276.3
562.7
113.7
214.3

1,169.5
840.6
277.5
563.1
112.9
216.0

1,187.8
855.4
285.4
570.1
115.8
216.6

1,194.6
862.4
287.9
574.5
114.9
217.3

1,205.3
872.2
293.1
579.1
116.1
216.9

7 Cash assets, total........................................
8 Currency and coin..................................
9 Reserves with Federal Reserve Banks
10 Balances with depository institutions .
11 Cash items in process of collection . . .

148.8
18.2
29.0
45.9
55.8

156.6
17.8
31.1
46.8
60.9

155.9
18.3
31.7
47.2
58.8

175.6
16.9
30.4
56.1
72.2

194.2
19.9
28.2
63.0
83.0

159.3
18.7
25.2
54.9
60.5

165.9
18.6
30.4
54.6
62.3

167.9
17.8
31.8
55.1
63.3

181.8
18.8
38.3
57.3
67.4

180.3
19.5
25.2
62.0
73.6

169.8
19.1
25.4
60.7
64.6

12 Other assets2 ..............................................

150.3

154.4

151.3

151.3

165.6

155.8

160.1

163.4

167.7

158.8

168.6

13 Total assets/total liabilities and capital...

1,407.7

1,428.9

1,442.1

1,477.7

1,537.0

1,481.0

1,493.0

1,500.9

1,537.3

1,533.7

1,543.7

14 D eposits......................................................
15 D em and..................................................
16 Savings....................................................
17 T im e ........................................................

1,062.8
363.4
208.5
490.9

1,077.2
369.7
209.1
498.5

1,092.9
375.7
210.9
506.2

1,126.2
393.0
209.5
523.7

1,187.4
432.2
201.3
553.8

1,128.7
351.1
211.9
565.7

1,132.0
345.5
214.3
572.3

1,136.5
345.3
220.5
570.7

1,151.7
356.8
222.7
572.2

1,170.3
360.7
220.9
588.7

1,165.9
350.9
220.7
594.3

18 Borrowings..................................................
19 Other liabilities..........................................
20 Residual (assets less liabilities)................

158.5
75.4

111.0

163.7
75.6
112.3

161.7
74.7
112.7

157.3
78.1
116.1

156.4
79.0
114.2

156.4
76.7
119.3

163.2
80.3
117.5

163.8
80.6
120.0

179.5
81.8
124.3

155.7
82.3
125.4

169.3
81.8
126.7

8.7
14,666

15.7
14,678

11.5
14,760

4.4
14,692

9.5'
14,693

9.5
14,689

8.5
14,696

10.2
14,701

16.9
14,713

5.5
14,719

17.4
14,719

Memo:
21 U.S. Treasury note balances included in
borrowing............................................
22 Number of b ank s......................................
A ll Commercial B anking
Institutions3
23 Loans and securities, excluding
interbank............................................
24 Loans, excluding interbank......................
25 Commercial and industrial..................
26 Other........................................................
27 U.S. Treasury securities............................
28 Other securities..........................................

1,194.3
881.5
308.1
573.4
105.6
207.2

1,262.4
932.5
330.6
601.9
113.6
216.3

1,253.8
920.9
329.3
591.6
115.2
217.7

29 Cash assets, total........................................
30 Currency and coin..................................
31
Reserves with Federal Reserve Banks
32 Balances with depository institutions .
33 Cash items in process of collection . . .

178.2
17.8
31.6
66.4
62.4

218.6
20.0
29.0
85.0
84.7

193.6
17.8
32.7
77.9
65.3

204.3

222.7

225.5

35 Total assets/total liabilities and capital...

1,576.8

1,703.7

1,673.0

36 D eposits......................................................
37 D em and..................................................
38 Savings....................................................
39 T im e ........................................................

1,122.1
388.8
209.5
523.9

1,239.9
453.6
201.6
584.7

1,190.6
367.4
220.7
602.5

40 Borrowings ................................................
41 Other liabilities..........................................
42 Residual (assets less liabilities)................

211.0
129.7
113.9

210.4
135.5
117.9

223.3
137.2
121.9

Memo:
43 U.S. Treasury note balances included in
borrowing............................................
44 Number of b ank s......................................

15.7
15,084

9.5
15,120

n.a.

10.2
15,147

34 Other assets2

1. Domestically chartered commercial banks include all commercial banks in the
United States except branches of foreign banks; included are member and nonmember banks, stock savings banks, and nondeposit trust companies.
2. Other assets include loans to U.S. commercial banks.
3. Commercial banking institutions include domestically chartered commercial
banks, branches and agencies of foreign banks, Edge Act and Agreement corpo­
rations, and New York State foreign investment corporations.




N o t e . Figures are partly estimated. They include all bank-premises subsidiaries
and other significant majority-owned domestic subsidiaries. Data for domestically
chartered commercial banks are for the last Wednesday of the month; data for
other banking institutions are for the last day of the quarter.

A18
1.26

Domestic Financial Statistics □ July 1981
ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $750 Million or More on
December 31, 1977, Assets and Liabilities
Millions of dollars, Wednesday figures

Account
Apr. 29

May 6

May 13

May 20

May 27 p

June 30 p

June 10 p

June 17p

June 24 p

1 Cash items in process of collection..............................
2 Demand deposits due from banks in the United
States .....................................................................
3 All other cash and due from depository institutions..

55,348

56,242

54,134

53,492

59,894

57,965

56,568

66,599

53,159

19,504
42,633

19,536
33,910

19,680
30,714

19,684
35,571

19,536
29,911

21,964
36,154

19,478
30,776

19,027
37,279

21,507
31,538

4 Total loans and securities.............................................

558,677

564,716

561,613

559,536

563,300

571,413

572,730

573,191

571,939

Securities
U.S. Treasury securities...............................................
Trading account........................................................
Investment account, by m aturity............................
One year or less....................................................
Over one through five years................................
Over five years......................................................
Other securities............................................................
Trading account........................................................
Investment account...................................................
U.S. government agencies....................................
States and political subdivision, by m aturity---One year or less.................................................
Over one y e a r...................................................
Other bonds, corporate stocks and securities___

39,720
5,440
34,280
9,997
20,447
3,836
77,596
2,671
74,925
16,395
55,680
7,269
48,412
2,849

40,190
5,590
34,600
10,439
20,367
3,794
78,317
3,663
74,654
16,364
55,537
7,344
48,194
2,753

39,655
4,985
34,671
10,359
20,531
3,781
76,813
2,117
74,696
16,411
55,527
7,288
48,239
2,757

39,560
5,108
34,452
10,150
20,484
3,817
76,761
2,079
74,682
16,410
55,495
7,277
48,218
2,777

39,632
5,306
34,326
10,126
20,393
3,807
76,857
2,078
74,779
16,449
55,555
7,338
48,217
2,776

42,128
7,685
34,444
10,627
19,994
3,823
78,914
3,711
75,202
16,556
55,882
7,733
48,149
2,764

43,334
8,879
34,455
10,788
19,840
3,827
78,092
2,945
75,148
16,406
55,970
7,767
48,203
2,771

43,138
8,836
34,303
10,758
19,708
3,836
77,593
2,723
74,870
16,364
55,745
7,502
48,242
2,761

40,945
7,071
33,874
10,506
19,596
3,772
77,000
2,353
74,648
16,256
55,672
7,398
48,274
2,720

26,696
17,853
6,605
2,238
426,478
174,456
4,414
170,042
162,838
7,203
115,342
70,598

27,266
18,312
6,799
2,155
430,788
176,899
4,576
172,322
165,018
7,304
115,453
70,458

28,826
18,830
6,634
3,361
428,174
175,545
3,803
171,743
164,289
7,454
116,033
70,486

26,717
18,754
5,961
2,002
428,386
174,878
3,758
171,119
163,817
7,302
116,227
70,532

29,213
19,975
6,399
2,840
429,509
175,464
4,256
171,208
163,862
7,345
116,365
70,634

28,491
19,753
6,714
2,024
433,858
176,639
4,209
172,430
165,033
7,397
116,635
70,708

32,141
22,469
6,427
3,245
431,209
176,005
4,217
171,788
164,226
7,562
116,918
70,720

27,334
19,136
6,266
1,932
437,230
178,296
4,585
173,711
166,140
7,570
117,237
70,875

29,959
20,965
6,432
2,563
436,122
178,750
4,878
173,873
166,320
7,553
117,519
71,026

4,917
8,055
10,084
15,225
6,344
2,357
5,590
13,509
5,840
5,973
414,664
10,142
91,751

4,828
8,450
10,178
15,631
6,401
2,509
5,656
14,325
5,803
6,042
418,943
10,124
90,099

4,868
8,344
9,904
15,661
5,872
2,567
5,712
13,181
5,805
6,051
416,318
10,173
89,140

4,430
9,045
9,924
15,810
5,610
2,591
5,763
13,577
5,810
6,078
416,498
10,201
86,871

4,773
9,038
9,773
15,543
5,630
2,572
5,782
13,934
5,834
6,076
417,598
10,218
84,580

5,274
8,783
9,841
15,966
7,796
2,592
5,823
13,799
5,838
6,139
421,880
10,242
87,779

4,870
8,746
9,894
15,907
6,105
2,616
5,821
13,604
5,880
6,166
419,162
10,259
90,940

5,321
8,741
9,822
16,114
7,866
2,539
5,844
14,575
5,914
6,192
425,125
10,269
91,260

5,363
8,386
9,812
15,948
6,906
2,509
5,902
13,998
5,921
6,166
424,035
10,272
90,285

778,056

774,628

765,455

765,357

767,440

785,518

780,752

797,625

778,700

188,649
599
128,823
4,456
2,880
32,839
8,400
1,987
8,664
322,988
77,894
73,904

190,281
674
129,194
4,993
1,829
35,125
7,847
1,992
8,625
326,510
78,439
74,480

185,036
579
127,775
4,002
1,183
35,242
7,616
1,469
7,169
328,552
77,679
73,691

182,768
576
125,053
4,335
3,099
32,792
8,159
1,271
7,483
330,722
77,344
73,415

191,452
589
130,954
4,498
1,104
35,972
9,195
1,558
7,580
331,715
77,064
73,133

195,134
689
130,752
4,262
3,312
36,735
8,674
1,725
8,985
334,602
77,797
73,903

192,070
495
131,013
4,306
1,913
35,232
8,488
1,990
8,633
333,130
77,822
73,953

200,130
521
133,582
4,734
2,098
34,059
9,408
1,623
14,105
331,623
77,719
73,920

188,279
517
125,959
4,427
3,193
36,122
9,126
1,492
7,441
334,260
76,796
72,919

3,376
597
17
245,094
211,052
19,924
228
7,833

3,341
596
21
248,070
213,863
19,910
233
7,884

3,311
655
22
250,873
216,054
20,218
257
8,147

3,265
640
24
253,378
218,236
20,309
253
8,351

3,300
610
21
254,650
219,492
20,176
255
8,421

3,244
633
16
256,805
221,968
19,852
258
8,394

3,273
579
18
255,308
220,914
19,626
240
8,272

3,180
599
21
253,904
220,197
19,250
264
7,934

3,194
662
22
257,463
223,663
19,268
271
8,020

6,057

6,180

6,196

6,228

6,307

6,333

6,256

6,258

6,241

7,478
12,536
128,539

965
10,008
129,508

2,530
8,743
122,596

2,352
4,009
124,728

369
3,568
121,896

4,843
2,023
128,969

2,669
2,536
132,092

5,447
11,360
130,599

616
12,578
124,707

5
6
7
8
9
10
11
12
13
14
15
16
17
18

Loans
19 Federal funds soldi............................ ..........................
20 To commercial banks...............................................
21 To nonbank brokers and dealers in securities.......
22 To others...................................................................
23 Other loans, gross........................................................
24 Commercial and industrial.......................................
25
Bankers acceptances and commercial paper.......
26
All o th er................................................................
27
U.S. addressees.................................................
28
Non-U.S. addressees.........................................
29 Real esta te ...................................................................
30 To individuals for personal expenditures...............
To financial institutions
31
Commercial banks in the United States.............
32
Banks in foreign countries....................................
33
Sales finance, personal finance companies, etc ..
34
Other financial institutions....................................
35 To nonbank brokers and dealers in securities.......
36 To others for purchasing and carrying securities2 ..
37 To finance agricultural.............................................
38 All o th er...................................................................
39 L e s s : Unearned income...............................................
40
Loan loss reserve...............................................
41 Other loans, net............................................................
42 Lease financing receivables.........................................
43 All other assets............................................................
44 Total assets...................................................................
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69

Deposits
Demand deposits..........................................................
Mutual savings banks...............................................
Individuals, partnerships, and corporations...........
States and political subdivisions..............................
U.S. government......................................................
Commercial banks in the United S tates.................
Banks in foreign countries.......................................
Foreign governments and official institutions.........
Certified and officers’ checks..................................
Time and savings deposits...........................................
Savings.......................................................................
Individuals and nonprofit organizations.............
Partnerships and corporations operated for
p ro fit..............................................................
Domestic governmental u n its..............................
All other................................................................
Time...........................................................................
Individuals, partnerships, and corporations.......
States and political subdivisions..........................
U.S. government...................................................
Commercial banks in the United S tates.............
Foreign governments, official institutions, and
banks..............................................................
Liabilities for borrowed money
Borrowings from Federal Reserve Banks...............
Treasury tax-and-loan n o te s ....................................
All other liabilities for borrowed money3...............
Other liabilities and subordinated notes and
debentures..............................................................

66,742

65,697

66,287

69,300

66,858

67,971

66,201

66,872

66,369

70 Total liabilities..............................................................

726,932

722,969

713,744

713,879

715,856

733,542

728,699

746,031

726,809

71 Residual (total assets minus total liabilities)4.............

51,123

51,659

51,711

51,478

51,584

51,976

52,054

51,594

51,891

1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets of $1 billion or
more on
FRASER Dec. 31, 1977, see table 1.13.

Digitized for


4. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.

Weekly Reporting Banks

A19

1.27 LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1 Billion or More on
December 31, 1977, Assets and Liabilities
Millions of dollars, Wednesday figures
Account
Apr. 29

May 6

May 13

May 20

May 27 p

June 3 p

June 10p

June 17p

June 24 p

1 Cash items in process of collection..............................
2 Demand deposits due from banks in the United
States .....................................................................
3 All other cash and due from depository institutions..

52,165

53,367

51,272

50,781

56,561

54,958

53,977

63,404

50,128

18,855
39,977

18,814
31,948

19,097
28,620

18,825
33,206

18,751
27,646

21,319
34,016

18,943
28,755

18,424
34,846

20,739
29,378

4 Total loans and securities.............................................

521,738

526,972

524,618

522,624

526,474

533,782

534,896

535,397

534,105

Securities
U.S. Treasury securities...............................................
Trading account........................................................
Investment account, by m aturity............................
One year or less....................................................
Over one through five years................................
Over five years......................................................
Other securities............................................................
Trading account........................................................
Investment account...................................................
U.S. government agencies....................................
States and political subdivision, by maturity . . . .
One year or less.................................................
Over one y e a r...................................................
Other bonds, corporate stocks and securities.. ..

36,264
5,370
30,894
9,183
18,250
3,461
71,333
2,583
68,750
15,199
50,873
6,567
44,306
2,678

36,752
5,525
31,227
9,603
18,199
3,425
72,073
3,571
68,502
15,177
50,743
6,650
44,093
2,582

36,214
4,917
31,296
9,545
18,346
3,406
70,602
2,061
68,542
15,225
50,731
6,596
44,135
2,586

36,146
5,046
31,100
9,354
18,315
3,431
70,529
2,005
68,524
15,234
50,690
6,587
44,103
2,600

36,231
5,244
30,987
9,330
18,233
3,424
70,635
2,017
68,618
15,272
50,747
6,652
44,095
2,599

38,733
7,613
31,120
9,790
17,881
3,449
72,593
3,632
68,961
15,372
51,001
6,970
44,031
2,588

39,925
8,801
31,124
9,925
17,742
3,457
71,818
2,886
68,932
15,222
51,115
6,992
44,123
2,594

39,707
8,750
30,958
9,884
17,607
3,467
71,358
2,659
68,699
15,190
50,925
6,772
44,153
2,584

37,526
6,993
30,533
9,632
17,498
3,403
70,740
2,284
68,456
15,082
50,831
6,661
44,170
2,543

5
6
7
8
9
10
11
12
13
14
15
16
17
18

Loam
19 Federal funds soldi......................................................
20 To commercial banks...............................................
21 To nonbank brokers and dealers in securities........
22 To others...................................................................
23 Other loans, gross........................................................
24 Commercial and industrial.......................................
25
Bankers acceptances and commercial paper.......
26
All o th er................................................................
27
U.S. addressees.................................................
28
Non-U.S. addressees.........................................
29 Real esta te ................................................................
30 To individuals for personal expenditures...............
To financial institutions
31
Commercial banks in the United S tates.............
32
Banks in foreign countries....................................
33
Sales finance, personal finance companies, etc ..
34
Other financial institutions....................................
35 To nonbank brokers and dealers in securities.......
36 To others for purchasing and carrying securities2 ..
37 To finance agricultural production..........................
38 All o th er...................................................................
39 L e s s : Unearned income...............................................
40
Loan loss reserve...............................................
41 Other loans, net............................................................
42 Lease financing receivables.........................................
43 All other assets............................................................

24,144
15,779
6,145
2,220
400,830
165,587
4,231
161,356
154,220
7,136
108,810
62,115

23,960
15,652
6,181
2,127
405,051
168,009
4,398
163,611
156,374
7,237
108,940
61,973

26,187
16,787
6,058
3,342
402,484
166,643
3,631
163,012
155,627
7,385
109,485
62,011

24,238
16,826
5,438
1,974
402,610
165,944
3,587
162,358
155,125
7,233
109,670
62,039

26,767
18,037
5,918
2,812
403,765
166,573
4,087
162,486
155,210
7,276
109,823
62,136

25,378
17,124
6,252
2,002
408,068
167,730
4,028
163,702
156,373
7,329
110,103
62,196

28,695
19,543
5,928
3,224
405,513
167,120
4,040
163,080
155,587
7,494'
110,382
62,198

24,045
16,328
5,797
1,919
411,393
169,429
4,404
165,025
157,524
7,500
110,669
62,343

26,625
18,182
5,900
2,542
410,302
169,922
4,701
165,221
157,739
7,482
110,944
62,462

4,817
8,004
9,941
14,868
6,242
2,152
5,450
12,844
5,210
5,624
389,997
9,852
88,923

4,724
8,378
10,034
15,263
6,313
2,302
5,513
13,603
5,172
5,692
394,187
9,834
87,349

4,763
8,286
9,755
15,294
5,789
2,365
5,568
12,525
5,168
5,700
391,615
9,884
86,412

4,325
8,976
9,772
15,435
5,526
2,392
5,619
12,910
5,172
5,728
391,709
9,911
84,250

4,673
8,968
9,621
15,170
5,544
2,376
5,634
13,246
5,200
5,724
392,840
9,927
81,803

5,165
8,700
9,692
15,608
7,710
2,393
5,679
13,092
5,207
5,783
397,078
9,949
85,101

4,764
8,662
9,746
15,542
6,017
2,418
5,679
12,985
5,246
5,809
394,458
9,965
88,293

5,173
8,671
9,684
15,734
7,774
2,336
5,697
13,883
5,274
5,833
400,286
9,974
88,641

5,216
8,316
9,684
15,562
6,817
2,306
5,755
13,318
5,277
5,811
399,213
9,978
87,465

44 Total assets...................................................................

731,510

728,285

719,903

719,597

721,161

739,125

734,829

750,687

731,794

176,588
577
119,683
3,901
2,220
31,553
8,324
1,983
8,348
301,827
71,903
68,238

178,450
642
119,959
4,400
1,628
33,729
7,769
1,989
8,333
305,156
72,407
68,768

1 7 3 ,6 3 7

1 7 1 ,1 6 8

552
118,688
3,532
1,082
33,906
7,537
1,458
6,881
307,131
71,717
68,042

550
115,921
3,784
2,839
31,502
8,067
1,270
7,235
309,131
71,420
67,799

179,422
561
121,577
3,968
977
34,349
9,119
1,556
7,314
310,056
71,167
67,542

183,224
651
121,589
3,732
3,057
35,223
8,578
1,724
8,669
312,687
71,810
68,233

180,717
474
122,054
3,830
1,699
33,934
8,386
1,988
8,351
311,242
71,864
68,301

188,270
500
124,459
4,075
1,767
32,735
9,319
1,615
13,800
309,698
71,778
68,270

176,405
498
116,981
3,865
2,652
34,706
9,053
1,485
7,165
312,275
70,880
67,348

3,108
540
17
229,924
197,999
18,154
207
7,506

3,082
536
21
232,749
200,653
18,139
212
7,565

3,052
601
22
235,414
202,700
18,463
237
7,817

3,010
587
24
237,711
204,726
18,510
235
8,011

3,040
564
21
238,889
205,895
18,376
236
8,075

2,989
571
16
240,877
208,190
18,084
241
8,030

3,017
528
18
239,379
207,121
17,882
224
7,895

2,927
560
21
237,920
206,279
17,572
250
7,562

2,943
568
22
241,395
209,671
17,578
258
7,647

6,057

6,180

6,196

6,228

6,307

6,333

6,256

6,258

6,241

7,176
11,662
121,231

951
9,318
121,887

2,411
8,136
115,424

2,054
3,698
117,617

302
3,327
114,597

4,731
1,856
121,597

2,546
2,365
124,642

5,314
10,510
123,233

578
11,560
117,686

45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69

Deposits
Demand deposits..........................................................
Mutual savings banks...............................................
Individuals, partnerships, and corporations...........
States and political subdivisions..............................
U.S. government......................................................
Commercial banks in the United States.................
Banks in foreign countries.......................................
Foreign governments and official institutions.........
Certified and officers’ checks..................................
Time and savings deposits...........................................
Savings.......................................................................
Individuals and nonprofit organizations.............
Partnerships and corporations operated for
p ro fit..............................................................
Domestic governmental u n its..............................
All other................................................................
Time...........................................................................
Individuals, partnerships, and corporations.......
States and political subdivisions..........................
U.S. government...................................................
Commercial banks in the United States.............
Foreign governments, official institutions, and
banks ..............................................................
Liabilities for borrowed money
Borrowings from Federal Reserve Banks...............
Treasury tax-and-loan n o te s ....................................
All other liabilities for borrowed money3...............
Other liabilities and subordinated notes and
debentures..........................................................

65,309

64,248

64,855

67,819

65,262

66,446

64,689

65,484

64,811

70 Total liabilities..............................................................

683,792

680,011

671,594

671,487

672,966

690,541

686,201

702,509

683,315

71 Residual (total assets minus total liabilities)4.............

47,717

48,274

48,309

48,110

48,195

48,584

48,628

48,178

48,479

1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes federal funds purchased and securities sold under agreement to re­
purchase; for information on these liabilities at banks with assets of $1 billion or
for more on Dec. 31, 1977, see table 1.13.
FRASER

Digitized


4. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.

A20
1.28

Domestic Financial Statistics □ July 1981
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures

Account
Apr. 29

May 6

May 13

May 20

May 21 p

June 3 p

June 10/>

June 17p

June 24 P

1 Cash items in process of collection..............................
2 Demand deposits due from banks in the United
States.....................................................................
3 All other cash and due from depository institutions..

21,805

22,135

19,698

19,706

20,653

21,808

24,382

30,078

20,189

13,486
9,721

13,249
10,070

14,545
7,139

13,859
8,348

12,866
5,275

15,950
9,853

13,698
8,514

13,129
10,211

15,709
5,394

4 Total loans and securities1 ...........................................

126,725

127,833

128,544

127,664

128,801

130,759

129,003

130,349

129,182

8,735
2,079
5,831
824

9,082
2,379
5,928
775

9,172
2,352
6,045
775

9,152
2,320
6,045
787

9,074
2,313
6,000
761

9,239
2,371
6,077
791

9,164
2,371
5,979
814

9,062
2,368
5,884
810

8,873
2,294
5,785
793

14,031
2,637
10,756
1,484
9,272
638

14,084
2,648
10,814
1,524
9,290
622

14,116
2,648
10,844
1,558
9,286
623

14,125
2,628
10,849
1,575
9,274
648

14,162
2,621
10,884
1,604
9,279
658

14,575
2,663
11,260
1,948
9,312
652

14,718
2,642
11,424
2,007
9,416
651

14,605
2,642
11,314
1,878
9,436
649

14,456
2,588
11,260
1,842
9,418
608

8,034
3,751
3,323
960
99,043
51,431
1,248
50,183
47,661
2,522
15,549
9,700

7,069
2,812
3,365
891
100,709
52,120
1,198
50,922
48,385
2,537
15,596
9,724

8,994
4,302
3,294
1,398
99,374
51,385
870
50,515
48,028
2,486
15,770
9,767

8,251
4,673
2,721
857
99,269
50,956
936
50,019
47,472
2,547
15,806
9,805

9,017
4,502
3,448
1,067
99,690
51,347
1,060
50,288
47,714
2,574
15,866
9,829

7,400
2,737
3,720
943
102,726
52,150
1,259
50,890
48,322
2,568
15,875
9,890

8,110
3,903
2,998
1,210
100,231
51,696
1,354
50,342
47,663
2,679
15,856
9,914

6,372
2,464
2,954
954
103,567
52,622
1,562
51,059
48,405
2,654
15,951
9,950

7,549
3,427
2,953
1,169
101,558
51,994
1,578
50,415
47,859
2,556
16,020
9,974

1,373
3,804
4,174
4,203
3,780
486
434
4,109
1,238
1,880
95,926
2,255
36,531

1,334
4,090
4,300
4,388
3,811
622
431
4,291
1,218
1,894
97,597
2,252
35,708

1,250
4,024
3,935
4,537
3,645
635
434
3,992
1,212
1,900
96,263
2,246
33,796

888
4,696
4,083
4,488
3,375
620
454
4,097
1,223
1,909
96,137
2,247
33,501

1,172
4,656
3,983
4,543
3,226
618
449
4,000
1,238
1,904
96,548
2,248
32,158

1,618
4,501
4,036
4,651
5,136
628
440
3,800
1,249
1,932
99,545
2,240
36,951

1,025
4,419
3,982
4,724
3,715
647
428
3,826
1,267
1,953
97,011
2,242
40,611

1,364
4,417
4,036
4,716
5,170
614
417
4,308
1,289
1,969
100,309
2,241
39,387

1,428
4,040
4,088
4,606
4,294
584
407
4,122
1,303
1,950
98,305
2,241
37,270

210,523

211,247

205,968

205,326

202,001

217,563

218,450

225,396

209,986

64,827
295
31,422
368
605
19,540
6,587
1,626
4,383
57,480
9,427
9,044

66,281
343
32,369
494
352
20,536
6,157
1,698
4,332
58,197
9,454
9,062

63,612
304
30,043
351
452
22,277
5,844
1,229
3,111
58,608
9,470
9,022

62,396
305
30,100
426
731
20,067
6,303
984
3,479
58,353
9,385
8,967

64,631
291
32,276
356
193
19,328
7,259
1,299
3,629
57,826
9,399
8,966

69,242
330
32,696
417
865
22,094
6,748
1,450
4,642
58,767
9,328
8,929

70,236
246
34,225
511
395
22,232
6,580
1,704
4,344
58,452
9,334
8,946

75,627
241
35,546
467
697
20,196
7,381
1,342
9,756
58,022
9,394
9,005

67,360
266
31,038
476
766
22,870
7,357
1,176
3,410
59,073
9,262
8,871

272
107
2
48,053
40,791
1,797
38
2,568

271
118
3
48,743
41,396
1,806
52
2,533

272
173
3
49,139
41,776
1,829
51
2,566

272
141
5
48,968
41,692
1,784
46
2,524

280
149
3
48,428
41,170
1,706
46
2,527

271
125
2
49,439
42,060
1,811
46
2,513

271
115
2
49,117
41,757
1,826
35
2,546

264
120
5
48,628
41,451
1,722
60
2,479

261
124
6
49,811
42,484
1,708
65
2,679

2,859

2,955

2,917

2,922

2,978

3,008

2,952

2,916

2,875

3,162
3,019
40,005

430
2,405
41,455

894
2,225
38,158

1,042
37,114

3,085
389
43,716

1,070
741
46,910

3,085
3,031
44,314

2,964
39,588

5
6
7
8
9
10
11
12
13
14
15
16
17
18

Securities
U.S. Treasury securities2 .............................................
Trading account2 ......................................................
Investment account, by m aturity............................
One year or less....................................................
Over one through five years................................
Over five years......................................................
Other securities2 ..........................................................
Trading account2 ......................................................
Investment account..................................................
U.S. government agencies....................................
_
States and political subdivision, by m aturity_
One year or less.................................................
Over one y e a r...................................................
Other bonds, corporate stocks and securities___

Loans
19 Federal funds sold3 ......................................................
20 To commercial banks...............................................
21 To nonbank brokers and dealers in securities.......
22 To others...................................................................
23 Other loans, gross........................................................
24 Commercial and industrial.......................................
25
Bankers acceptances and commercial paper.......
26
All o th er...............................................................
27
U.S. addressees.................................................
28
Non-U.S. addressees.........................................
29 Real e sta te ...............................................................
30 To individuals for personal expenditures...............
31 To financial institutions
Commercial banks in the United States.............
32
Banks in foreign countries....................................
33
Sales finance, personal finance companies, etc...
34
Other financial institutions....................................
35 To nonbank brokers and dealers in securities.......
36 To others for purchasing and carrying securities4 ..
37 To finance agricultural production..........................
38 All o th er...................................................................
39 L e s s : Unearned income...............................................
40
Loan loss reserve...............................................
41 Other loans, net............................................................
42 Lease financing receivables.........................................
43 All other assets5............................................................
44 Total assets......................................... ..........................
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69

Deposits
Demand deposits..........................................................
Mutual savings banks...............................................
Individuals, partnerships, and corporations...........
States and political subdivisions..............................
U.S. government......................................................
Commercial banks in the United States.................
Banks in foreign countries.......................................
Foreign governments and official institutions.........
Certified and officers’ checks..................................
Time and savings deposits...........................................
Savings.......................................................................
Individuals and nonprofit organizations.............
Partnerships and corporations operated for
pro fit..............................................................
Domestic governmental u n its..............................
All other................................................................
Time...........................................................................
Individuals, partnerships, and corporations.......
States and political subdivisions..........................
U.S. government..................................................
Commercial banks in the United States.............
Foreign governments, official institutions, and
banks ..............................................................
Liabilities for borrowed money
Borrowings from Federal Reserve Banks...............
Treasury tax-and-loan n o te s....................................
All other liabilities for borrowed money6 ...............
Other liabilities and subordinated notes and
debentures..............................................................

940
40,256

26,299

26,398

26,367

27,355

25,375

26,077

24,777

25,232

24,982

70 Total liabilities..............................................................

194,793

195,166

189,864

189,301

185,988

201,275

202,186

209,312

193,967

71 Residual (total assets minus total liabilities)7.............

15,730

16,081

16,104

16,025

16,013

16,288

16,264

16,084

16,019

1.
2.
3.
4.

Excludes trading account securities.
Not available due to confidentiality.
Includes securities purchased under agreements to resell.
Other than financial institutions and brokers and dealers.




5. Includes trading account securities.
6. Includes federal funds purchased and securities sold under agreements to
repurchase
7. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.

Weekly Reporting Banks
1.29

LARGE WEEKLY REPORTING COMMERCIAL BANKS

A21

Balance Sheet Memoranda

Millions of dollars, Wednesday figures

Apr. 29

May 6

May 13

May 20

may 27 p

June 3 p

June 10 p

June 17 p

June 24 p

B anks with A ssets o f $750 Million or More
1 Total loans (gross} and securities adjusted1 ................
2 Total loans (gross) adjusted1..........................................
3 Demand deposits adjusted2 ............................................

547,720
430,405
97,582

553,421
434,914
97,085

549,770
433,302
94,476

548,241
431,920
93,385

550,463
433,974
94,480

558,363
437,321
97,121

557,437
436,011
98,357

560,839
440,108
97,373

557,699
439,753
95,804

4 Time deposits in accounts of $100,000 or more..........
5 Nejgotiable C D s............................................................
6
Other time deposits......................................................

158,915
114,194
44,722

161,485
116,126
45,358

164,026
118,038
45,988

165,734
119,009
46,725

166,792
120,051
46,741

168,079
120,636
47,443

166,411
118,938
47,473

164,915
117,544
47,371

169,072
121,226
47,846

7 Loans sold outright to affiliates3....................................
8 Commercial and industrial..........................................
9 Other..............................................................................

2,748
1,880
868

2,705
1,869
836

2,754
1,917
838

2,778
1,946
831

2,773
1,942
831

2,880
2,027
853

2,902
2,071
831

2,837
1,995
843

2,799
1,960
838

10 Total loans (gross} and securities adjusted1 ................
11 Total loans (gross) adjusted1..........................................
12 Demand deposits adjusted2 ............................................

511,975
404,379
90,650

517,461
408,636
89,726

513,937
407,121
87,377

512,372
405,696
86,046

514,688
407,822
87,534

522,483
411,157
89,985

521,644
409,902
91,107

525,003
413,937
90,364

521,795
413,528
88,919

13 Time deposits in accounts of $100,000 or more..........
14 Negotiable C D s............................................................
15 Other time deposits......................................................

150,589
108,490
42,099

153,049
110,339
42,709

155,464
112,167
43,297

157,014
113,024
43,990

157,988
113,990
43,997

159,193
114,537
44,656

157,529
112,878
44,651

155,998
111,448
44,550

160,042
115,067
44,975

16 Loans sold outright to affiliates3....................................
17 Commercial and industrial..........................................
18 Other..............................................................................

2,692
1,842
850

2,654
1,828
826

2,697
1,868
829

2,726
1,904
822

2,718
1,896
822

2,824
1,980
844

2,841
2,018
822

2,775
1,943
832

2,732
1,906
826

19 Total loans (gross} and securities adjusted1,4..............
20 Total loans (gross) adjusted1..........................................
21 Demand deposits adjusted2 ........................ ....................

124,718
101,953
22,877

126,798
103,631
23,258

126,104
102,816
21,184

125,236
101,959
21,892

126,269
103,032
24,457

129,584
105,771
24,474

127,295
103,413
23,227

129,778
106,111
24,655

127,580
104,252
23,535

22 Time deposits in accounts of $100,000 or more..........
23 Nejgotiable C D s............................................................
24
Other time deposits......................................................

37,775
28,308
9,467

38,383
28,666
9,717

38,667
28,908
9,759

38,302
28,507
9,795

37,728
28,020
9,708

38,572
28,363
10,209

38,226
27,991
10,235

37,694
27,553
10,141

39,021
28,831
10,191

B anks with A ssets o f $1 B illion or More

B anks in N ew York City

1. Exclusive of loans and federal funds transactions with domestic commercial
banks.
2. All demand deposits except U.S. government and domestic banks less cash
items in process of collection.




3. Loans sold are those sold outright to a bank’s own foreign branches, non­
consolidated nonbank affiliates of the bank, the bank’s holding company (if not a
bank), and nonconsolidated nonbank subsidiaries of the holding company.
4. Excludes trading account securities.

A22
1.30

Domestic Financial Statistics □ July 1981
LARGE WEEKLY REPORTING COMMERCIAL BANKS

Domestic Classified Commercial and Industrial Loans

Millions of dollars
Outstanding
Industry classification

Net change during
1981

1981
Feb. 25

Mar. 25

Apr. 29

May 27

June 24 p

Ql

1981
Q2 p

Apr.

May

Junep

1 Durable goods manufacturing...............

24,650

24,654

24,570

24,623

25,274

-217

620

-8 4

52

651

2 Nondurable goods manufacturing........
3 Food, liquor, and tobacco.................

19,051
4,544

19,401
4,580

19,845
4,409

20,266
4,577

20,618
4,404

-1,229
-834

1,217
-176

444
-171

421
168

352
-173

4,365
3,005
3,690
3,446

4,351
2,982
3,838
3,650

4,469
3,298
4,036
3,633

4,603
3,457
3,957
3,672

4,920
3,412
4,055
3,826

200
-724
-100
230

569
430
217
176

118
316
198
-1 8

134
159
-7 9
40

317
-4 5
98
154

4
5
6
7

Textiles, apparel, and leather...........
Petroleum refining............................
Chemicals and ru b b er.......................
Other nondurable goods...................

8 Mining (including crude petroleum
and natural gas)..............................

15,974

15,750

16,752

17,182

18,194

-695

2,444

1,002

430

1,012

9 Trade......................................................
10 Commodity dealers............................
11 Other wholesale................................
12 Retail..................................................

25,316
1,874
11,735
11,707

25,617
1,950
11,875
11,792

26,778
2,337
12,244
12,196

26,306
1,865
12,023
12,418

26,107
1,499
12,087
12,520

-729
-613
-467
352

490
-451
212
728

1,160
387
369
404

-472
-472
-221
222

-199
-366
65
102

13 Transportation, communication,
and other public utilities...............
14 Transportation....................................
15 Communication..................................
16 Other public utilities..........................

20,428
8,235
3,110
9,082

19,973
8,107
3,160
8,705

20,338
8,156
3,275
8,906

20,403
8,343
3,462
8,597

20,824
8,196
3,542
9,086

-1,518
-377
-174
-967

851
89
381
381

365
49
115
201

65
187
186
-308

421
-147
79
489

17 Construction...........................................
18 Services..................................................
19 All other2...............................................

6,126
23,719
15,046

6,225
23,611
15,181

6,446
24,074
15,416

6,988
24,422
15,020

6,984
24,546
15,192

218
555
-878

758
934
11

221
463
234

542
347
-396

-4
124
173

20 Total domestic loans..............................

150,310

150,413

154,220

155,210

157,739

-4,492

7,326

3,807

990

2,529

80,147

79,298

80,333

82,441

83,481

-2,492

4,183

1,036

2,108

1,040

21

Term loans (original maturity
more than 1 year) included in do­
mestic loans ....................................

M em o:

1. Adjustment bank amounts represent accumulated adjustments originally made
to offset the cumulative effects of mergers. These adjustment amounts should be
added to outstanding data for any date in the year to establish comparability with
any date in the subsequent year. Changes shown have been adjusted for these
amounts.
2. Includes commercial and industrial loans at a few banks with assets of Si
billion or more that do not classify their loans.

NOTES TO TABLE 1.31
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 B u l l e t in , p. 466.
2. Beginning with the March 1979 survey, the demand deposit ownership survey
sample was reduced to 232 banks from 349 banks, and the estimation procedure
was modified slightly. To aid in comparing estimates based on the old and new
reporting sample, the following estimates in billions of dollars for December 1978
have been constructed using the new smaller sample; financial business, 27.0;
nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and other, 15.1.
3. Demand deposit ownership data for March 1981 are subject to greater than
normal errors reflecting unusual reporting difficulties associated with funds shifted
to NOW accounts authorized at year-end 1980. For the household category, the
$15.7 billion decline in demand deposits at all commercial banks between December
1980 and March 1981 has an estimated standard error of $4.8 billion.




N o t e . New series. The 134 large weekly reporting commercial banks with do­
mestic assets of $1 billion or more as of December 31, 1977, are included in this
series. The revised series is on a last-Wednesday-of-the-month basis. Partly esti­
mated historical data are available from the Banking Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C., 20551.

4. After the end of 1978 the large weekly reporting bank panel was changed to
170 large commercial banks, each of which had total assets in tlomestic offices
exceeding $750 million as of Dec. 31, 1977. See “Announcements,” p. 408 in the
May 1978 B u l l e t in . Beginning in March 1979, demand deposit ownership esti­
mates for these large banks are constructed quarterly on the basis of 97 sample
banks and are not comparable with earlier data. The following estimates in billions
of dollars for December 1978 have been constructed for the new large-bank panel;
financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8; foreign, 2.5;
other, 6.8.

Deposits and Commercial Paper
1.31

A23

GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations1
Billions of dollars, estimated daily-average balances
Commercial banks
Type of holder

19792
1975
Dec.

1 All holders—Individuals, partnerships, and
corporations........................................................
2
3
4
5
6

Financial business......................................................
Nonfinancial business.................................................
Consumer........................................................ ...........
Foreign.......................................................................
Other...........................................................................

1976
Dec.

1977
Dec.

1980

1981

1978
Dec.
Dec.

Mar.

June

Sept.

Dec.

Mar.3

236.9

250.1

274.4

294.6

302.2

288.4

288.6

302.0

315.5

280.8

20.1
125.1
78.0
2.4
11.3

22.3
130.2
82.6
2.7
12.4

25.0
142.9
91.0
2.5
12.9

27.8
152.7
97.4
2.7
14.1

27.1
157.7
99.2
3.1
15.1

28.4
144.9
97.6
3.1
14.4

27.7
145.3
97.9
3.3
14.4

29.6
151.9
101.8
3.2
15.5

29.8
162.3
102.4
3.3
17.2

30.8
144.3
86.7
3.4
15.6

Weekly reporting banks
19794
1975
Dec.

1976
Dec.

1977
Dec.

Dec.
7 All holders—Individuals, partnerships, and
corporations........................................................
8
9
10
11
12

Financial business......................................................
Nonfinancial business.................................................
Consumer....................................................................
Foreign.......................................................................
Other...........................................................................

1980

1981

1978
Dec.
Mar.

June

Sept.

Dec.

Mar.3

124.4

128.5

139.1

147.0

139.3

133.6

133.9

140.6

147.4

133.2

15.6
69.9
29.9
2.3
6.6

17.5
69.7
31.7
2.6
7.1

18.5
76.3
34.6
2.4
7.4

19.8
79.0
38.2
2.5
7.5

20.1
74.1
34.3
3.0
7.8

20.1
69.1
34.2
3.0
7.2

20.2
69.2
33.9
3.1
7.5

21.2
72.4
36.0
3.1
7.9

21.8
78.3
35.6
3.1
8.6

21.9
69.8
30.6
3.2
7.7

For notes see bottom of page A ll.

1.32

COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1980
Instrument

1977
Dec.

1978
Dec.

1981

1980
Dec.

19791
Dec.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Commercial paper (seasonally adjusted)
1 AH issuers.......................

2
3
4
5
6

Financial companies2
Dealer-placed paper3
T otal..........................
Bank-related.............
Directly placed paper4
T o tal..........................
Bank-related.............
Nonfinancial companies5

65,051

83,438

112,809

125,148

124,606

125,148

128,656

130,306

132,702

134,229

141,466

8,796
2,132

12,181
3,521

17,377
2,874

19.631
3,561

19,591
3,436

19,631
3,561

19,886
3,670

20,859
3,742

22,643
4,163

24,206
4,437

25,061
4,800

40,574
7,102
15,681

51,647
12,314
19,610

64,748
17,598
30,684

67,888
22,382
37,629

67,340
21,939
37,675

67,888
22,382
37,629

68,956
22,570
39,814

68,936
22,331
40,511

69,461
21,604
40,598

69,537
22,858
40,486

71,842
23,880
44,563

Bankers dollar acceptances (not seasonally adjusted)
7 T otal....................................
8
9
10
11
12
13

Holder
Accepting banks.................
Own b ills........................
Bills bought.....................
Federal Reserve Banks
Own account...................
Foreign correspondents ..
Others..................................

Basis
14 Imports into United States .
15 Exports from United States
16 All other..............................

25,450

33,700

45,321

54,744

55,226

54,744

54,465

58,084

60,089

62,320

60,551

10,434
8,915
1,519

8,579
7,653
927

9,865
8,327
1,538

10,564
8,963
1,601

10,236
8,837
1,399

10,564
8,963
1,601

9,371
7,951
1,420

9,911
8,770
1,141

10,117
8,735
1,382

10,781
9,626
1,155

10,138
9,049
1,088

954
362
13,700

1
664
24,456

704
1,382
33,370

776
1,791
41,614

523
1,852
42,616

776
1,791
41,614

0
1,771
43,323

0
1,399
46,779

298
1,372
48,303

0
1,383
50,156

0
1,255
49,158

6,378
5,863
13,209

8,574
7,586
17,540

10,270
9,640
25,411

11,776
12,712
30,257

11,774
13,670
29,782

11,776
12,712
30,257

11,903
12,816
29,746

12,976
12,979
32,129

13,292
13,451
33,347

13,634
13,368
35,319

12,775
13,057
34,768

1. A change in reporting instructions results in offsetting shifts in the dealerplaced and directly placed financial company paper in October 1979.
2. Institutions engaged primarily in activities such as, but not limited to, com­
mercial, savings, and mortgage banking; sales, personal, and mortgage financing;
factoring, finance leasing, and other business lending; insurance underwriting; and
other investment activities.




3. Includes all financial company paper sold by dealers in the open market.
4. As reported by financial companies that place their paper directly with inves­
tors.
5. Includes public utilities and firms engaged primarily in such activities as com­
munications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.

A24
1.33

Domestic Financial Statistics □ July 1981
PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum

Effective date

Rate

Effective Date

Rate

Month

Average
rate

Month

Average
rate

1980-Dec. 1 0 .................
1 6 .................
1 9 .................

20.00
21.00
21.50
20.50
20.00
19.50
19.00
18.00

17.50
17.00
17.50
18.00
19.00
19.50
20.00
20.50
20.00

1980—Apr.........................
May........................
June .......................
July........................
AJ
Aug.........................
Sept.........................
Oct..........................
Nov.........................
Dec..........................

19.77
16.57
12.63
11.48
11.12
12.23
13.79
16.06
20.35

1981—Jan...........................

1981—Jan. 2 ...................
9 ...................
Feb. 3...................
23...................
Mar. 1 0 .................

1981—Mar. 1 7 .................
Apr. 2 .................
2 4 .................
30...................
May 4 ...................
11...................
19...................
22...................
June 3 .................

20.16
19.43
18.05
17.15
19.61
20.03

Mar.........................
Apr..........................
May........................

1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 4-9, 1981
Size of loan (in thousands of dollars)
Item

All
sizes
1-24

25-49

50-99

100-499

1,000
and over

500-999

Short-Term Commercial and
Industrial Loans
1
2
3
4
5

Amount of loans (thousands of dollars)........................
Number of loans.................................................................
Weighted-average maturity (months)............................
Weighted-average interest rate (percent per annum) .
Interquartile range1 .......................................................

16,840,794
164,452
2.0
19.99
19.00-20.85

853,190
121,015
3.1
19.45
17.85-21.15

481,971
14,694
3.8
19.87
18.83-21.74

767,519
12,003
3.5
19.10
17.00-21.00

2,118,788
12,686
3.2
19.93
18.95-21.49

1,041,775
1,706
3.3
19.58
18.39-20.75

11,577,551
2,346
1.4
20.14
19.36-20.85

49.0
52.8
21.6

30.1
24.6
13.4

41.2
33.1
12.6

43.2
48.1
21.4

64.7
49.1
20.7

60.7
56.7
29.5

47.2
56.4
22.0

Percentage of amount o f loans
6 With floating rate...............................................................
7 Made under commitment.................................................
8 With no stated maturity...................................................
Long-Term Commercial and
Industrial Loans
9
10
11
12
13

Amount of loans (thousands of dollars)........................
Number of loans.................................................................
Weighted-average maturity (months)............................
Weighted-average interest rate (percent per annum) .
Interquartile range1 .......................................................

3,633,958
21,441
50.6
19.25
19.00-20.00

280,677
17,936
35.4
19.22
17.87-21.34

450,944
2,725
53.1
19.34
18.68-20.16

175,691
277
43.8
19.48
19.00-20.74

2,726,645
503
52.2
19.23
19.00-19.76

78.6
77.2

49.5
25.7

68.4
34.6

87.1
78.0

82.7
89.5

Percentage o f amount of loans
14 With floating rate...............................................................
15 Made under commitment.................................................
Construction and
Land D evelopment Loans
16
17
18
19
20

Amount of loans (thousands of dollars)........................
Number of loans.................................................................
Weighted-average maturity (m onths)............................
Weighted-average interest rate (percent per annum) .
Interquartile range1 .......................................................

21
22
23
24

874,542
13,956
13.2
19.09
18.00-21.94

74,010
7,690
3.3
19.83
18.00-21.91

81,222
2,363
4.1
19.06
15.00-21.74

169,763
2,333
17.7
16.10
8.25-18.40

223,133
1,332
12.0
20.74
20.40-22.54

326,415
237
16.1
19.35
19.00-21.55

66.3
93.1
64.8
10.5

58.5
93.3
63.5
20.6

42.3
85.5
62.3
5.2

19.4
97.9
19.8
4.7

83.2
92.4
80.9
4.0

87.0
93.0
78.1
17.0

32.3
13.1
54.7

64.1
2.9
33.0

85.5
3.3
11.2

12.5
3.0
84.5

24.0
10.1
65.9

27.7
25.2
47.2

With floating rate...............................................................
Secured by real estate.......................................................
Made under commitment.................................................
With no stated m aturity...................................................

Percentage of amount of loans

Type of construction
25 1-to 4-family.......................................................................
26 Multifamily.........................................................................
27 Nonresidential.....................................................................

All
sizes

10-24

1-9

25-49

50-99

100-249

250
and over

Loans to Farmers
28
29
30
31
32

Amount of loans (thousands of dollars)........................
Number of loans.................................................................
Weighted-average maturity (months)............................
Weighted-average interest rate (percent per annum) .
Interquartile range1 .......................................................

33
34
35
36
37

Feeder livestock.................................................................
Other livestock...................................................................
Other current operating expenses..................................
Farm machinery and equipm ent....................................
O th er...................................................................................

1,419,090
77,593
6.8
17.88
16.53-19.10

188,183
50,065
6.8
17.50
16.64-18.68

236,302
15,850
6.4
17.59
16.64-18.81

220,646
6,450
6.6
17.67
16.64-18.50

180,935
2,740
6.3
17.78
16.64-18.50

18.44
17.98
17.73
17.61
17.68

17.98
17.28
17.46
17.53
17.30

18.43
18.42
17.36
17.62
17.25

17.91
17.39
17.65
17.63
17.58

18.07
18.75
17.88
17.01
17.22

281,187
1,957

7.7
17.97
16.53-18.77

311,838
531
6.8
18.46
16.10-20.75

By purpose of loan

1. Interest rate range that covers the middle 50 percent of the total dollar amount
of loans made.
2. Fewer than 10 sample loans.




18.49
17.64
18.27

nS

N ote . For more detail, see the Board’s E .2 ( lll) statistical release,

18.93

n(
§
1.9
9]

Securities Markets
1.35

A25

INTEREST RATES Money and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1981, week ending

1981
Instrument

1978

1979

1980
Mar.

Apr.

May

June

June 5

June 12

June 19

June 26

July 3

Money Market R ates
1 Federal funds1,2 ............................................
Commercial paper3,4
2
1-month......................................................
3 3-month......................................................
4 6-month......................................................
Finance paper, directly placed3,4
5
1-month......................................................
6 3-month......................................................
7 6-month......................................................
Bankers acceptances4,5
8 3-month......................................................
9 6-month......................................................
Certificates of deposit, secondary market6
10
1-month......................................................
11 3-month......................................................
12 6-month......................................................
13 Eurodollar deposits, 3-month2 ..................
U.S. Treasury bills4
Secondary market7
14
3-montn..................................................
15
6-month..................................................
16
1-year......................................................
Auction average8
17
3-month..................................................
18
6-month..................................................
19
1-year......................................................

7.93

11.19

13.36

14.70

15.72

18.52

19.10

18.40

19.33

19.10

19.20

18.84

7.76
7.94
7.99

10.86
10.97
10.91

12.76
12.66
12.29

14.15
13.94
13.59

14.79
14.56
14.17

17.91
17.56
16.66

17.34
16.32
15.22

17.81
16.90
15.72

17.41
16.24
15.12

17.32
15.99
14.90

17.03
16.24
15.12

17.29
16.35
15.46

7.73
7.80
7.78

10.78
10.47
10.25

12.44
11.49
11.28

13.78
13.08
12.89

14.24
13.28
12.94

17.47
15.56
14.97

16.66
14.58
14.13

17.27
15.13
14.65

16.90
14.87
14.37

16.21
14.25
13.85

16.36
14.21
13.79

16.78
14.21
13.79

8.11
n.a.

11.04
n.a.

12.78
n.a.

13.88
13.49

14.65
14.19

17.56
16.26

16.27
15.02

16.71
15.33

16.10
14.78

16.09
14.89

16.21
15.04

16.53
15.46

7.88
8.22
8.61
8.78

11.03
11.22
11.44
11.96

12.91
13.07
12.99
14.00

14.33
14.43
14.48
15.36

14.92
15.08
15.12
15.95

18.16
18.27
17.66
19.06

17.55
16.90
16.09
17.86

17.78
17.37
16.49
17.98

17.61
16.72
15.88
18.04

14.78
16.60
15.79
17.35

17.49
16.97
16.21
18.00

17.43
17.10
16.42
18.01

7.19
7.58
7.74

10.07
10.06
9.75

11.43
11.37
10.89

13.36
12.81
12.28

13.69
13.45
12.79

16.30
15.29
14.29

14.73
14.09
13.22

15.69
14.62
13.53

14.79
13.99
13.15

14.31
13.86
13.03

14.39
13.98
13.20

14.34
14.04
13.30

7.221
7.572
7.678

10.041
10.017
9.817

11.506
11.374
10.748

13.478
12.983
11.481

13.635
13.434
12.991

16.295
15.334
14.623

14.557
13.947
13.146

15.456
14.491

14.982
14.000

13.451
13.356
13.146

14.337
13.939

13.909
13.621

8.34
8.34

10.67
10.12

12.05
11.77

13.71
13.57

14.32
14.15

16.20
15.46

14.86
14.51

14.73
14.37

9.71
9.52
9.48
9.44
9.33
9.29

11.55
11.48
11.43
11.46
11.39
11.30

13.51
13.41
13.24
13.12
12.94
12.69

14.09
13.99
13.85
13.68
13.46
13.20

15.08
14.63
14.30
14.10
13.82
13.60

14.29
13.95
13.67
13.47
13.20
12.96

14.16
13.83
13.56
13.34
13.06
12.85

14.67
14.36
14.35
14.15
13.81
13.49
13.29
13.01
12.76

14.86
14.61

8.29
8.32
8.36
8.41
8.48
8.49

15.22
14.65
14.50
14.42
14.06
13.72
13.53
13.28
13.08

14.39
14.05
13.76
13.61
13.32
13.05

14.94
14.74
14.65
14.58
14.28
14.10
13.88
13.61
13.31

12.39

12.48

12.30

12.18

12.48

12.76

10.00
11.20
10.59

9.75
11.20
10.63

9.75
11.20
10.73

9.95
11.25
10.74

9.80
11.25
10.85

Capital Market Rates

20
21
22
23
24
25
26
27
28

U.S. Treasury notes and bonds9
Constant maturities10
1-year......................................................
2-year......................................................
2-V2-year11..............................................
3-year......................................................
5-year......................................................
7-year......................................................
10-year....................................................
20-year....................................................
30-year....................................................

29

Composite12
Over 10 years (long-term)..................

7.89

8.74

10.81

12.15

12.62

12.96

State and local notes and bonds
Moody’s series13
30
Aaa..........................................................
31
Baa..........................................................
32
B o n d B u y er series1 4 ................................

5.52
6.27
6.03

5.92
6.73
6.52

7.85
9.01
8.59

9.50
10.40
10.16

9.78
10.85
10.62

9.90
11.28
10.78

Corporate bonds
Seasoned issues15
All industries........................................
Aaa..........................................................
Aa............................................................
A ..............................................................
Baa..........................................................
Aaa utility bonds16
38
New issu e ..............................................
39
Recently offered issues........................

9.07
8.73
8.92
9.12
9.45

10.12
9.63
9.94
10.20
10.69

12.75
11.94
12.50
12.89
13.67

14.26
13.33
13.90
14.47
15.34

14.66
13.88
14.39
14.82
15.56

15.15
14.32
14.88
15.43
15.95

14.76
13.75
14.41
15.08
15.80

14.86
13.84
14.65
15.18
15.78

14.78
13.73
14.47
15.14
15.76

14.65
13.61
14.21
15.02
15.75

14.72
13.77
14.28
15.00
15.82

14.91
14.04
14.51
15.11
15.97

8.96
8.97

10.03
10.02

12.74
12.70

14.71
14.41

15.68
15.48

15.81
15.48

14.76
14.81

14.93
15.03

15.01
14.74

14.35
14.59

14.79

14.94

Memo: Dividend/price ratio17
40 Preferred stocks........................................
41
Common stocks........................................

8.25
5.28

9.07
5.46

10.57
5.25

11.81
4.88

11.80
4.84

12.03
4.98

12.23
5.03

12.29
5.08

12.36
5.03

12.11
4.98

12.17
5.02

12.23
5.03

33
34
35
36
37

1. Weekly and monthly figures are averages of all calendar days, where the rate
for a weekend or holiday is taken to be the rate prevailing on the preceding business
day. The daily rate is the average of the rates on a given day weighted by the
volume of transactions at these rates.
2. Weekly figures are statement week averages—that is, averages for the week
ending Wednesday.
3. 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— days,
119
and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 150—
179 days for finance paper.
4. Yields are quoted on a bank-discount basis, rather than an investment yield
basis (which would give a higher figure).
5. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quotecl bv the dealers).
6. Unweighted average of offered rates quoted by at least five dealers early in
the day.
7. Unweighted average of closing bid rates quoted by at least five dealers.
8. Rates are recorded in the week in which bills are issued.
9. Yields (not compounded) are based on closing bid prices quoted by at least
five dealers.
10. 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.




9.86
11.21
10.67

11. Each weekly figure is calculated on a biweekly basis and is the average of
five business days ending on the Monday following the calendar week. The biweekly
rate is used to determine the maximum interest rate payable in the following twoweek period on small saver certificates. (See table l.lo.)
12. Unweighted averages for all outstanding notes and bonds neither due nor
callable in less than 10 years, including several very low yielding “flower” bonds.
13. General obligations only, based on figures for Thursday, from Moody’s
Investors Service.
14. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
15. Daily figures from Moody’s Investors Service. Based on yields to maturity
on selected long-term bonds.
16. Compilation of the Federal Reserve. Issues included are long-term (20 years
or more). New-issue yields are based on quotations on date of offering; those on
recently offered issues (included only for first 4 weeks after termination of under­
writer price restrictions), on Friday close-of-business quotations.
17. 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 trans­
portation. Common stock ratios on the 500 stocks in the price index.

A26
1.36

Domestic Financial Statistics □ July 1981
STOCK MARKET

Selected Statistics
1980

1981

Indicator
Jan.

Feb.

Mar.

Apr.

May

Prices and trading (averages of daily figures)

Common stock prices
1 New York Stock Exchange (Dec. 31, 1965 = 50) ..
2 In d u stria l....................................................................
3 Transportation............................................................
4
U tility ..........................................................................
5
Finance ........................................................................
6 Standard & Poor’s Corporation (1941-43 = 10)1. ..
7 American Stock Exchange (Aug. 31, 1973 = 100) .

53.76
58.30
43.25
39.23
56.74
96.11
144.56

55.67
61.82
45.20
36.46
58.65
107.94
186.56

68.06
78.64
60.52
37.35
64.28
118.71
300.94

76.69
90.37
75.74
37.84
67.46
133.48
347.56

76.24
89.23
74.43
38.53
70.04
132.97
344.21

73.52
85.74
72.76
37.59
68.48
128.40
338.28

76.46
89.39
77.09
37.78
72.82
133.19
347.07

77.60
90.57
80.63
38.34
74.59
134.43
363.09

76.28
88.78
76.78
38.27
74.65
131.73
365.52

76.80
88.63
76.71
39.23
79.79
132.28
369.64

28,591
3,622

32,233
4,182

44,867
6,377

46,620
6,410

45,500
6,024

42,963
4,816

53,387
5,682

54,124
6,339

45,272
5,650

50,517
6,096

Volume of trading (thousands of shares)
8 New York Stock Exchange..........................................
9 American Stock E x c h an g e..........................................

Customer financing (end-of-period balances, in millions of dollars)
10 Regulated margin credit at brokers/dealers2.

11,035

11,619

14,721

14,721

14,242

14,171

11 Margin stock3....................................................
12 Convertible bonds............................................
13 Subscription issu es..........................................

10,830
205

11,450
167

14,500
219

14,500
219

1

2

2

2

14,020
221

835
2,510

1,105
4,060

2,105
6,070

2,105
6,070

13,950
220

14,020
222

1

14,630
238

14,700
251

1

1

1

1

2,065
5,655

2,225
5,700

2,340
6,530

2,270
6,530

2,340
6,150

Free credit balances at brokers4
14 M argin-account................................................
15 Cash-account....................................................

Margin-account debt at brokers (percentage distribution, end of period)
16 T otal......................................

100.0

100.0

100.0

100.0

100.0

33.0
28.0
18.0
10.0
6.0
5.0

16.0
29.0
27.0
14.0

14.0
30.0
25.0
14.0
9.0

7.0

8.0

14.0
30.0
25.0
14.0
9.0
8.0

20.0
30.0
22.0
13.0
8.0
7.0

By equity class (in percent)5
17
18
19
20
21
22

Under 40................................
40-49......................................
50-59......................................
60-69......................................
70-79......................................
80 or m o re ............................

8.0

20.0
31.0
21.0
13.0

20.8
26.8
23.7
12.6

8.0

16.0
28.0
26.0
14.0
9.0

7.0

8.0

8.0

8.1

21.3
25.3
25.3
12.7
8.0
7.4

Special miscellaneous-account balances at brokers (end of period)
23 Total balances (millions of dollars)*..

Distribution by equity status (percent)
24 Net credit s ta tu s ..................................
Debt status, equity of
25
60 percent or m o re..........................
26
Less than 60 percent........................

13,092

16,150

21,690

21,690

21,686

21,861

41.3

44.2

47.8

45.1
13.6

47.0
8.8

44.4
7.7

47.8

47.0

48.6

44.4
7.7

43.9
9.1

43.1
8.3

22,548

22,748

23,930

50.9

49.3

50.2

41.5
7.6

41.7
9.0

41.0
8.8

Margin requirements (percent of market value and effective date)7
Mar. 11, 1968
27 Margin stocks........
28 Convertible bonds.
29 Short s a le s ............

June 8, 1968

70
50
70

1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Margin credit includes all credit extended to purchase or carry stocks or related
equity instruments and secured at least in part by stock. Credit extended is endof-month data for member firms of the New York Stock Exchange.
In addition to assigning a current loan value to margin stock generally, Regu­
lations T and U permit special loan values for convertible bonds and stock acquired
through exercise of subscription rights.
3. A distribution of this total by equity class is shown on lines 17-22.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.




May 6, 1970

Dec. 6, 1971

Nov. 24, 1972

65
50
65

55
50
55

65
50
65

50
50
50

5. Each customer’s equity in his collateral (market value of collateral less net
debit balance) is expressed as a percentage of current collateral values.
6. Balances that may be used by customers as the margin deposit required for
additional purchases. Balances may arise as transfers based on loan values of other
collateral in the customer’s margin account or deposits of cash (usually sales pro­
ceeds) occur.
7. Regulations G, T, and U of the Federal Reserve Board of Governors, pre­
scribed in accordance with the Securities Exchange Act of 1934, limit the amount
of credit to purchase and carry margin stocks that may be extended on securities
as collateral by prescribing a maximum loan value, which is a specified percentage
of the market value of the collateral at the time the credit is extended. Margin
requirements are the difference between the market value (100 percent) and the
maximum loan value. The term “margin stocks” is defined in the corresponding
regulation.

Thrift Institutions
1.37

SAVINGS INSTITUTIONS

A ll

Selected Assets and Liabilities

Millions of dollars, end of period
1980
Account

1978

1981

1979
Aug.

Sept.

Oct.

Nov.

Jan.

Dec.

Feb.

Mar.

Apr.

May/7

Savings and loan associations
1 Assets..........................................................

523,542 578,962 603,295 609,320 617,773 623,939

629,829

631,228 634,405

636,859

639,827 644,362

2 Mortgages...................................................
3 Cash and investment securities1 ...............
4 O th e r..........................................................

432,808 475,688 487,036 491,895 496,495 499,973
44,884 46,341 53,336 53,435 56,146 57,302
45,850 56,933 62,923 63,990 65,132 66,664

502,812
57,572
69,445

504,068 505,309
57,460 58,401
69,700 70,695

507,152
58,461
71,246

509,525 511,986
56,886 58,871
72,416 73,505

5 Liabilities and net worth............................
6
7
8
9
10
11

Savings capital.............................................
Borrowed money.......................................
FH L B B ...................................................
O th e r......................................................
Loans in process.........................................
O th e r..........................................................

523,542 578,962 603,295 609,320 617,773 623,939

629,829

631,228 634,405

636,859

639,827 644,362

430,953 470,004 497,403 496,991 500,861 503,365
42,907 55,232 55,396 58,418 60,727 62,067
31,990 40,441 41,005 42,547 44,325 45,505
10,917 14,791 15,871 16,402 16,562 17,446
8,654
10,721
9,582
8,853
8,243
8,783
9,904 11,506 16,190 12,776 14,502 16,433

510,959
64,491
47,045
16,309
8,120
12,227

512,946 515,250
62,938 62,270
46,629 46,360
15,910 16,887
7,833
7,756
14,104 16,071

518,990
64,197
47,310
18,097
7,840
13,271

516,071 517,541
67,704 69,832
49,607 50,961
18,097 18,871
7,840
7,997
14,946 17,129

12 Net worth2...................................................

29,057

32,638

32,787

32,892

33,029

33,221

33,319

33,120

32,981

32,645

32,266

31,863

13 Memo: Mortgage loan com­
mitments outstanding3........................

18,911

16,007

20,278

20,311

19,077

17,979

16,102

15,972

16,279

17,374

18,552

18,553

171,564' 171,891

172,349

173,232

172,837

Mutual savings banks4
14 Assets..........................................................
15
16
17
18
19
20
21

Loans
Mortgage.................................................
O th e r......................................................
Securities
U.S. government5 ..................................
State and local government...................
Corporate and other6..............................
C ash............................................................
Other assets.................................................

158,174 163,405 168,752 169,409 170,432 171,126
95,157
7,195

98,908
9,253

99,289
11,122

99,306
11,415

99,523
11,382

99,677
11,477

99,865'
11,733'

99,816
12,199

99,739
12,598

99,719
13,248

99,798
12,756

4,959
3,333
39,732
3,665
4,131

7,658
2,930
37,086
3,156
4,412

8,079
2,709
39,327
3,456
4,770

8,434
2,728
39,609
3,153
4,764

8,622
2,754
39,720
3,592
4,839

8,715
2,736
39,888
3,717
4,916

8,949'
2,390'
39,282'
4,334'
5,011'

9,000
2,378
39,256
4,133
5,107

9,032
2,376
39,223
4,205
5,177

9,203
2,359
39,236
4,238
5,231

9,262
2,314
39,247
4,172
5,288

22 Liabilities....................................................

158,174 163,405 168,752 169,409 170,432 171,126

171,564' 171,891

172,349

173,232

172,837

23
24
25
26
27
28
29
30

142,701 146,006 150,187 151,765 151,998 152,133
141,170 144,070 148,018 149,395 149,797 150,109
71,816 61,123 58,191 58,658 57,651 56,256
69,354 82,947 89,827 90,736 92,146 93,853
2,370
2,200
2,042
1,531
1,936
2,169
5,873
7,211
6,299
7,117
7,644
4,565
10,907 11,525 11,353 11,344 11,317 11,349

153,501' 153,143 153,332
151,416' 151,051 151,346
53,971' 52,737 52,035
97,445' 98,314 99,311
2,086'
2,092
1,986
6,695'
7,426
7,753
11,368' 12,957 13,412

154,805
152,630
53,049
99,581
2,174
7,265
11,163

153,692
151,429
52,331
99,098
2,264
8,103
11,042

1,331

1,379

n.a.

1,614

Deposits......................................................
Regular7...................................................
Ordinary savings..................................
Time and other....................................
O th er......................................................
Other liabilities...........................................
General reserve accounts..........................
Memo: Mortgage loan com­
mitments outstanding8........................

4,400

3,182

1,849

1,883

1,817

1,682

1,476'

1,316

Life insurance companies
31 Assets..........................................................

389,924 432,282 459,362 464,483 468,057 473,529

476,190

463,150 482,264

487,067

489,431

Securities
Government...........................................
United States 9......................................
State and lo cal....................................
Foreign10.............................................
Business...................................................
Bonds...................................................
Stocks...................................................
Mortgages...................................................
Real estate...................................................
Policy loans.................................................
Other assets.................................................

20,009
0,338 20,833 20,853 20,942 21,204
5,390
4,822
4,888
5,386
5,361
5,568
6,474
6,484
6,402
6,428
6,421
6,568
8,785
9,022
9,026
9,018
9,068
9,068
198,105 222,332 230,477 233,652 236,115 239,150
162,587 178,371 187,839 189,586 191,229 191,753
35,518 39,757 42,638 44,066 44,886 47,397
106,167 118,421 127,357 128,089 128,977 129,878
11,764 13,007 14,184 14,460 14,702 15,183
30,146 34,825 39,925 40,258 40,548 40,878
23,733 27,563 26,586 27,171 26,765 27,236

21,453
5,753
6,682
9,018
238,048
191,090
46,958
131,145
15,247
41,411
28,836

21,891 22,092
6,016
6,066
6,831
6,900
9,044
9,126
240,630 241,600
194,889 195,521
45,741 46,079
131,710 132,445
15,235 16,026
42,032 42,604
26,983 27,497

22,132
6,024
6,948
9,160
243,304
196,439
46,865
133,150
16,370
43,264
28,847

21,646
5,369
7,103
9,174
245,498
198,385
47,113
133,659
16,575
43,795
27,934

32
33
34
35
36
37
38
39
40
41
42

n.a.

Credit unions
43 Total assets/liabilities and
capital...................................................

62,348

65,854

69,553

70,515

70,702

71,335

71,709

70,754

71,446

73,214

72,783

73,565

44
45
46
47
48
49
50
51

34,760
27,588
50,269
27,687
22,582
53,517
29,802
23,715

35,934
29,920
53,125
28,698
24,426
56,232
35,530
25,702

38,168
31,385
47,884
25,401
22,483
61,403
33,964
27,439

39,219
31,296
47,211
25,381
21,830
63,728
35,961
27,767

39,155
31,547
47,221
25,288
21,933
63,957
36,030
27,927

39,428
31,907
47,299
25,273
22,026
64,304
36,183
28,121

39,801
31,908
47,774
25,627
22,147
64,399
36,348
28,051

39,142
31,612
47,309
25,272
22,037
63,874
35,915
27,959

39,636
31,810
47,451
25,376
22,075
64,357
36,236
28,121

40,624
32,590
47,815
25,618
22,197
65,744
36,898
28,846

40,207
32,576
47,994
25,707
22,287
65,495
36,684
28,811

40,648
32,917
48,499
26,038
22,461
65,988
36,967
29,021

Federal........................................................
State............................................................
Loans outstanding......................................
Federal.....................................................
State........................................................
Savings........................................................
Federal (shares)......................................
State (shares and deposits).....................

For notes see bottom of page A28.




A28
1.38

Domestic Financial Statistics □ July 1981
FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation

Fiscal
year
1978

Fiscal
year
1979

Fiscal
year
1980

1979

1980

H2

HI

1981
H2

Mar.

Apr.

May

U.S. budget
1 Receipts1..........................................................
2 Outlays1-2 ........................................................
3 Surplus, or deficit( - ) ..................................
4 Trust funds..................................................
5
Federal funds3 ............................................

401,997
450,804
-48,807
12,693
-61,532

465,940
493,635
-27,694
18,335
-46,069

520,050
579,613
-59,563
8,791
-67,752

233,952
263,004
-29,052
9,679
-38,773

270,864
289,905
-19,041
4,383
-23,418

262,152
310,972
-48,821
-2,551
-46,306

44,623
54,217
-9,593
-601
-8,992

74,464
57,198
17,266
1,896
15,370

38,514
54,608
-16,094
3,639
-19,733

-10,661
302

-13,261
793

-14,549
303

-5,909
765

-7,735
-5 2 2

-7,552
376

-3,4 2 0
-3 5

-2,088
-7 3

-1 ,9 4 3
-3 4 2

-59,166

-40,162

-73,808

-34,197

-27,298

-55,998

-13,048

15,251

-18,379

59,106

33,641

70,515

31,320

24,435

54,764

15,138

-3,7 2 5

539

-3,023
3,083

-4 0 8
6,929

-355
3,648

3,059
-1 8 2

-3,482
6,345

-6,730
7,964

-5,8 5 2
3,762

-5 ,1 2 2
6,404

22,809
-4 ,9 6 9

22,444
16,647
5,797

24,176
6,489
17,687

20,990
4,102
16,888

15,924
4,075
11,849

14,092
3,199
10,893

12,305
3,062
9,243

10,717
3,032
7,685

21,150
4,460
16,690

5,702
2,288
3,414

Off-budget entities (surplus, or deficit
6 Federal Financing Bank outlays..................
7 O ther4 ..............................................................

U.S. budget plus off-budget, including
Federal Financing Bank
8 Surplus, or deficit ( - ) ..................................
Source or financing
9
Borrowing from the p u b lic ......................
10 Cash and monetary assets (decrease, or
increase ( - ))* ....................................
11
Other6 ................................................ ..........
M em o:

12 Treasury operating balance (level, end of
p e rio d )...................................... ..........
13 Federal Reserve B a n k s .................. ..........
14 Tax and loan accounts.................... ..........

1. Effective June 1978, earned income credit payments in excess of an indi­
vidual’s tax liability, formerly treated as income tax refunds, are classified as outlays
retroactive to January 1976.
2. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was re­
classified from an off-budget agency to an on-budget agency in the Department of
Labor.
3. Half-year figures are calculated as a residual (total surplus/deficit less trust
fund surplus/deficit).
4. Includes Postal Service Fund; Rural Electrification and Telephone Revolving
Fund; and Rural Telephone Bank.
5. Includes U.S. Treasury operating cash accounts; special drawing rights; gold
tranche drawing rights; loans to International Monetary Fund; and other cash and
monetary assets.

6.
Includes accrued interest payable to the public; allocations of special drawing
rights; deposit funds; miscellaneous liability (including checks outstanding) and
asset accounts; seignorage; increment on gold; net gain/loss for U.S. currency
valuation adjustment; net gain/loss for IMF valuation adjustment; and profit on
the sale of gold.
So u r c e.

“Monthly Treasury Statement of Receipts and Outlays of the U.S.

Government,” Treasury Bulletin, and the Budget of the United States Government,
Fiscal Year 1981.

NOTES TO TABLE 1.37
1. Holdings of stock of the Federal Home Loan Banks are included in “other
assets.”
2. Includes net undistributed income, which is accrued by most, but not all,
associations.
3. Excludes figures for loans in process, which are shown as a liability.
4. The NAMSB reports that, effective April 1979, balance sheet data are not
strictly comparable with previous months. Beginning April 1979, data are reported
on a net-of-valuation-reserves basis. Prior to that date, data were reported on a
gross-of-valuation-reserves basis.
5. Beginning April 1979, includes obligations of U.S. government agencies. Before
that date, this item was included in “Corporate and other.”
6. Includes securities of foreign governments and international organizations
and, prior to April 1979, nonguaranteed issues of U.S. government agencies.
7. Excludes checking, club, and school accounts.
8. Commitments outstanding (including loans in process) of banks in New York
State as reported to the Savings Banks Association of the state of New York.
9. Direct and guaranteed obligations. Excludes federal agency issues not guar­
anteed, which are shown in the table under “Business” securities.




10.
Issues of foreign governments and their subdivisions and bonds of the In­
ternational' Bank for Reconstruction and Development.
N o t e . Savings and loan associations: Estimates by the FHLBB for all associations
in the United States. Data are based on monthly reports of federally insured
associations and annual reports of other associations. Even when revised, data for
current and preceding year are subject to further revision.
Mutual savings banks: Estimates of National Association of Mutual Savings
Banks for all savings banks in the United States.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for differ­
ences between market and book values are not made on each item separately but
are included, in total, in “other assets.”
Credit unions: Estimates by the National Credit Union Administration for a
group of federal and state-chartered credit unions that account for about 30 percent
of credit union assets. Figures are preliminary and revised annually to incorporate
recent benchmark data.

Federal Finance
1.39

A29

U.S. BUDGET RECEIPTS AND OUTLAYS
Millions of dollars
Calendar year
Source or type

Fiscal
year
1978

Fiscal
year
1979

Fiscal
year
1980

1980

1979

1981

H2

HI

H2

Mar.

Apr.

May

R eceipts

1 All sources*...................................................

401,997

465,955

520,050

233,952

270,864

262,152

44,623

74,464

38,514

2 Individual income taxes, n e t........................
3
W ithheld......................................................
4
Presidential Election Campaign F und. . .
5 Nonwithheld................................................
6
Refunds!......................................................
Corporation income taxes
7
Gross re c e ip ts............................................
8 Refunds........................................................
9 Social insurance taxes and contributions,
n e t ............................................................
10 Payroll employment taxes and
contributions2......................................
11 Self-employment taxes and
contributions3......................................
12 Unemployment insurance........................
13 Other net receipts4 ....................................

180,988
165,215
39
47,804
32,070

217,841
195,295
36
56,215
33,705

244,069
223,763
39
63,746
43,479

115,488
105,764
3
12,355
2,634

119,988
110,394
34
49,707
40,147

131,962
120,924
4
14,592
3,559

13,693
22,337
11
3,754
12,410

38,659
20,532
7
30,674
12,644

10,496
20,260
8
2,451
12,222

65,380
5,428

71,448
5,771

72,380
7,780

29,169
3,306

43,434
4,064

28,579
4,518

10,203
1,617

10,203
1,617

1,894
883

123,410

141,591

160,747

71,031

86,597

77,262

15,784

20,201

20,694

99,626

115,041

133,042

60,562

69,077

66,831

14,579

13,843

15,026

4,267
13,850
5,668

5,034
15,387
6,130

5,723
15,336
6,646

417
6,899
3,149

5,535
8,690
3,294

188
6,742
3,502

419
174
613

3,945
1,802
612

419
4,660
588

18,376
6,573
5,285
7,413

18,745
7,439
5,411
9,252

24,329
7,174
6,389
12,741

9,675
3,741
2,900
5,254

11,383
3,443
3,091
6,993

15,332
3,717
3,499
6,318

4,210
661
572
1,117

3,754
655
485
1,338

3,953
625
647
1,087

18 All types*,* ...................................................

450,804

493,635

579,613

263,004

289,905

310,972

54,217

57,198

54,608

19
20
21
22
23
24

National defense............................................
International a ffa irs......................................
General science, space, and technology . . .
Energy..............................................................
Natural resources and environment............
A griculture......................................................

105,186
5,922
4,742
5,861
10,925
7,731

117,681
6,091
5,041
6,856
12,091
6,238

135,856
10,733
5,722
6,313
13,812
4,762

62,002
4,617
3,299
3,281
7,350
1,709

69,132
4,602
3,150
3,126
6,668
3,193

72,457
5,430
3,205
3,997
7,722
1,892

13,560
808
692
475
1,093
-5 4

13,274
1,681
505
924
1,093
-3 0 4

13,810
737
536
1,106
1,017
-1 5 1

Commerce and housing c r e d it....................
Transportation................................................
Community and regional developm ent----Education, training, employment, social
services ....................................................
29 H ealth..............................................................
30 Income security 1,6..........................................

3,324
15,445
11,039

2,565
17,459
9,482

7,782
21,120
10,068

3,002
10,298
4,855

3,878
9,582
5,302

3,163
11,547
5,370

377
1,605
782

321
1,685
844

-2 6 9
1,581
687

26,463
43,676
146,180

29,685
49,614
160,159

30,767
58,165
193,100

14,579
26,492
85,967

16,686
29,299
94,605

15,221
31,263
107,912

2,666
5,757
19,242

2,564
6,259
18,768

2,677
5,645
18,576

18,974
3,802
3,737
9,601
43,966
-15,772

19,928
4,153
4,153
8,372
52,556
-18,489

21,183
4,570
4,505
8,584
64,504
-21,933

10,113
2,174
2,103
4,286
29,045
-12,164

9,758
2,291
2,422
3,940
32,658
-10,387

11,731
2,299
2,432
4,191
35,909
-14,769

1,028
377
749
98
5,835
-8 7 5

2,168
465
310
1,166
6,423
-9 4 9

1,670
343
393
253
7,024
-1 ,0 2 9

14
15
16
17

Excise ta x e s ....................................................
Customs deposits............................................
Estate and gift taxes......................................
Miscellaneous receipts5 ................................
O utlays

25
26
27
28

31
32
33
34
35
36

Veterans benefits and services....................
Administration of justice..............................
General government......................................
General-purpose fiscal assistance................
Interest7 ..........................................................
Undistributed offsetting receipts7,8 ............

1. Effective June 1978, earned income credit payments in excess of an individual’s
tax liability, formerly treated as income tax refunds, were classified as outlays
retroactive to January 1976.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Supplementary medical insurance premiums, federal employee retirement
contributions, and Civil Service retirement and disability fund.
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous re­
ceipts.
6. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was re­




classified from an off-budget agency to an on-budget agency in the D epartm ent of
Labor.
7. Effective September 1976, “Interest” and “Undistributed offsetting receipts”
reflect the accounting conversion from an accrual basis to a cash basis for the
interest on special issues for U.S. government accounts.
8. Consists of interest received by trust funds, rents and royalties on the O uter
Continental Shelf, and U.S. government contributions for employee retirement.
S o u r c e . “Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government” and the Budget of the U.S. Government, Fiscal Year 1981.

A30
1.40

Domestic Financial Statistics □ July 1981
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1979

1980

1981

Item
Mar. 31

June 30

Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

Dec. 31

Mar. 31

1 Federal debt outstanding...................................................

804.6

812.2

833.8

852.2

870.4

884.4

914.3

936.7

970.9

2 Public debt securities........................................................
3 Held by public................................................................
4 Held by agencies............................................................

796.8
630.5
166.3

804.9
626.4
178.5

826.5
638.8
187.7

845.1
658.0
187.1

863.5
677.1
186.3

877.6
682.7
194.9

907.7
710.0
197.7

930.2
737.7
192.5

964.5
773.7
190.9

5 Agency securities..............................................................
6 Held by public................................................................
7 Held by agencies............................................................

7.8
6.3
1.5

7.3
5.9
1.5

7.2
5.8
1.5

7.1
5.6
1.5

7.0
5.5
1.5

6.8
5.3
1.5

6.6
5.1
1.5

6.5
5.0
1.5

6.4
4.9
1.5

Debt subject to statutory limit...........................................

797.9

806.0

827.6

846.2

864.5

878.7

908.7

931.2

965.5

9 Public debt securities........................................................
10 Other d e b ti.......................................................................

796.2
1.7

804.3
1.7

825.9
1.7

844.5
1.7

862.8
1.7

877.0
1.7

907.1
1.6

929.6
1.6

963.9
1.6

11

798.0

830.0

830.0

879.0

879.0

925.0

925.0

935.1

985.0

8

M em o:

Statutory debt limit...............................................

1. Includes guaranteed debt of government agencies, specified participation certificates, notes to international lending organizations, and District of Columbia
stadium bonds.

1.41

GROSS PUBLIC DEBT OF U.S. TREASURY

N o te .

Data from Treasury Bulletin (U.S. Treasury Department),

Types and Ownership

Billions of dollars, end of period
1981
Type and holder

1977

1978

1979

1980
Feb.

Mar.

Apr.

May

June

1 Total gross public debt......................................................

718.9

789.2

845.1

930.2

950.5

964.5

964.0

968.5

971.2

By type
Interest-bearing d e b t........................................................
Marketable.........................................................................
Bills.................................................................................
Notes...............................................................................
Bonds.............................................................................
Nonmarketable1 ................................................................
Convertible bonds2........................................................
State and local government series................................
Foreign issues3................................................................
Government................................................................
Public.........................................................................
Savings bonds and notes...............................................
Government account series4 .........................................

715.2
459.9
161.1
251.8
47.0
255.3
2.2
13.9
22.2
21.0
1.2
77.0
139.8

782.4
487.5
161.7
265.8
60.0
294.8
2.2
24.3
29.6
28.0
1.6
80.9
157.5

844.0
530.7
172.6
283.4
74.7
313.2
2.2
24.6
28.8
23.6
5.3
79.9
177.5

928.9
623.2
216.1
321.6
85.4
305.7

946.5
642.9
229.0
324.5
89.4
303.5

963.2
661.1
235.3
336.5
89.3
302.1

962.8
657.9
225.8
341.1
91.0
304.9

964.8
656.2
224.5
338.4
93.3
308.6

969.9
660.8
218.8
348.8
93.2
309.2

23.8
24.0
17.6
6.4
72.5
185.1

23.6
24.0
17.5
6.4
70.7
185.0

23.5
24.2
17.7
6.4
70.3
183.8

23.4
24.4
18.0
6.4
69.8
187.0

23.2
24.8
18.4
6.4
69.5
190.8

23.2
23.5
17.1
6.4
69.2
193.0

15 Non-interest-bearing d eb t.................................................

3.7

6.8

1.2

1.3

4.0

1.3

1.2

3.7

1.3

By holder5
U.S. government agencies and trust funds......................
Federal Reserve B anks....................................................
Private investors................................................................
Commercial b an k s............................................................
Mutual savings banks........................................................
Insurance companies........................................................
Other companies................................................................
State and local governments.............................................

154.8
102.8
461.3
101.4
5.9
15.1
22.7
55.2

170.0
109.6
508.6
93.1
5.0
14.9
21.2
64.4

187.1
117.5
540.5
91.5
4.7
14.8
24.9r
67.4

192.5
121.3
616.4
104.7
5.8
15.2
24.6
74.7

192.0
118.4
639.6
107.4
5.8
15.0
22.4
76.0

190.9
119.0
654.6
108.5
6.0
14.8
21.5
77.8

193.9
119.7
650.4
104.8
6.2
14.8
21.8
79.1

n.a.

n.a.

Individuals
24 Savings b o nds................................................................
25 Other securities..............................................................
26 Foreign and international6................................................
27 Other miscellaneous investors7......... ...............................

76.7
28.6
109.6
46.1

80.7
30.3
137.8
58.2

79.9
36.2
123.8
97.4

72.2
56.7
134.3
127.9

70.7
65.5
136.7
140.0

70.4
68.2
142.7
144.7

69.8
68.3
142.8
142.8

2
3
4
5
6
7
8
9
10
11
12
13
14

16
17
18
19
20
21
22
23

1. Includes (not shown separately): Securities issued to the Rural Electrification
Administration, depository bonds, retirement plan bonds, and individual retire­
ment bonds.
2. These nonmarketable bonds, also known as Investment Series B Bonds, may
be exchanged (or converted) at the owner’s option for l 1 percent, 5-year mar­
^
ketable Treasury notes. Convertible bonds that have been so exchanged are re­
moved from this category and recorded in the notes category (line 5).
3. Nonmarketable dollar-denominated and foreign currency-denominated series
held by foreigners.
4. Held almost entirely by U.S. government agencies and trust funds.
5. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.




6. Consists of investments of foreign balances and international accounts in the
United States. Beginning with July 1974, the figures exclude non-interest-bearing
notes issued to the International Monetary Fund.
7. Includes savings and loan associations, nonprofit institutions, corporate pen­
sion trust funds, dealers and brokers, certain government deposit accounts, and
government sponsored agencies.
N o t e . Gross public debt excludes guaranteed agency securities and, beginning
in July 1974, includes Federal Financing Bank security issues.
Data by type of security from Monthly Statement of the Public Debt of the United
States (U.S. Treasury Department); data by holder from Treasury Bulletin.

Federal Finance
1.42

U.S. GOVERNMENT MARKETABLE SECURITIES

A31

Ownership, by maturity

Par value; millions of dollars, end of period
1981

1981
Type of holder

1979

1980

1979
Mar.

1980

Apr.

Mar.

Apr.

1 to 5 years

All maturities
1 All holders........................................................................................

530,731

623,186

661,142

657,906

164,198

197,409

203,927

203,931

2 U.S. government agencies and trust funds........................................
3 Federal Reserve B an k s........................................................................

11,047
117,458

9,564
121,328

9,304
119,039

9,228
119,687

2,555
8,469

1,990
35,835

1,363
35,323

1,363
34,981

4 Private investors....................................................................................
5 Commercial b an k s............................................................................
6 Mutual savings banks........................................................................
7
Insurance com panies........................................................................
8 Nonfinancial corporations................................................................
9 Savings and loan associations..........................................................
10 State and local governments............................................................
11 All others............................................................................................

402,226
69,076
3,204
11,496
8,433
3,209
15,735
291,072

492,294
77,868
3,917
11,930
7,758
4,225
21,058
365,539

532,800
80,710
4,098
11,698
7,203
4,163
22,317
402,610

528,992
77,913
4,204
11,661
7,342
4,330
22,756
400,787

133,173
38,346
1,668
4,518
2,844
1,763
3,487
80,546

159,585
44,482
1,925
4,504
2,203
2,289
4,595
99,577

167,241
41,573
1,950
4,171
1,734
2,524
4,818
110,470

167,588
41,218
2,008
4,224
1,392
2,654
5,218
110,873

Total, within 1 year

5 to 10 years

12 All holders........................................................................................

255,252

297,385

318,907

311,001

50,440

56,037

61,995

64,945

13 U.S. government agencies and trust funds........................................
14 Federal Reserve B an k s........................................................................

1,629
63,219

830
56,858

1,189
54,525

1,113
55,373

871
12,977

1,404
13,458

1,411
13,797

1,411
13,918

15 Private investors....................................................................................
16 Commercial b an k s............................................................................
17 Mutual savings banks........................................................................
18 Insurance com panies........................................................................
19 Nonfinancial corporations................................................................
20
Savings and loan associations..........................................................
21
State and local governments............................................................
22 All others............................................................................................

190,403
20,171
836
2,016
4,933
1,301
5,607
155,539

239,697
25,197
1,246
1,940
4,281
1,646
7,750
197,636

263,193
30,106
1,317
2,152
3,774
1,465
8,183
216,196

254,515
27,183
1,340
1,992
3,768
1,489
7,819
210,924

36,592
8,086
459
2,815
308
69
1,540
23,314

41,175
5,793
455
3,037
357
216
2,030
29,287

46,786
6,424
511
3,146
461
111
2,243
33,891

49,616
6,695
521
3,207
516
127
2,491
36,060

Bills, within 1 year

10 to 20 years

23 All holders........................................................................................

172,644

216,104

235,315

225,849

27,588

36,854

38,238

38,202

24 U.S. government agencies and trust funds........................................
25 Federal Reserve B an k s........................................................................

0
45,337

1
43,971

1
42,632

1
43,263

4,520
3,272

3,686
5,919

3,685
5,891

3,685
5,929

26 Private investors....................................................................................
27
Commercial b an k s............................................................................
28 Mutual savings banks........................................................................
29
Insurance com panies........................................................................
30 Nonfinancial corporations................................................................
31
Savings and loan associations..........................................................
32
State and local governments............................................................
33
All others............................................................................................

127,306
5,938
262
473
2,793
219
3,100
114,522

172,132
9,856
394
672
2,363
818
5,413
152,616

192,681
12,464
425
812
1,879
512
5,701
170,888

182,585
9,504
426
730
1,900
526
5,150
164,349

19,796
993
127
1,305
218
58
1,762
15,332

27,250
1,071
181
1,718
431
52
3,597
20,200

28,662
1,166
186
1,519
417
39
3,923
21,413

28,587
1,190
182
1,528
839
37
4,014
20,798

Other, within 1 year

Over 20 years

34 All holders........................................................................................

82,608

81,281

83,592

85,153

33,254

35,500

38,076

39,827

35 U.S. government agencies and trust funds........................................
36 Federal Reserve B an k s........................................................................

1,629
17,882

829
12,888

1,188
11,892

1,112
12,110

1,472
9,520

1,656
9,258

1,656
9,503

1,656
9,486

37 Private investors....................................................................................
38
Commercial b a n k s............................................................................
39 Mutual savings banks........................................................................
40
Insurance com panies........................................................................
41
Nonfinancial corporations................................................................
42
Savings and loan associations..........................................................
43
State and local governments............................................................
44 All others............................................................................................

63,097
14,233
574
1,543
2,140
1,081
2,508
41,017

67,565
15,341
852
1,268
1,918
828
2,337
45,020

70,512
17,641
892
1,340
1,895
953
2,481
45,308

71,931
17,680
914
1,262
1,868
963
2,669
46,574

22,262
1,470
113
842
130
19
3,339
16,340

24,587
1,325
110
730
476
21
3,086
18,838

26,918
1,441
135
710
816
25
3,150
20,640

28,685
1,627
153
709
828
23
3,213
22,132

N o t e . Direct public issues only. Based on Treasury Survey of Ownership from
Treasury Bulletin (U.S. Treasury Department).

Data complete for U.S. government agencies and trust funds and Federal Reserve
Banks, but data for other groups include only holdings of those institutions that
report. The following figures show, for each category, the number and proportion
reporting as of Apr. 30, 1981: (1) 5,342 commercial banks, 457




mutual savings banks, and 723 insurance companies, each about 80 percent; (2)
411 nonfinancial corporations and 474 savings and loan associations, each about
50 percent; and (3) 488 state and local governments, about 40 percent.
“All others,” a residual, includes holdings of all those not reporting in the
Treasury Survey, including investor groups not listed separately.

A32
1.43

Domestic Financial Statistics □ July 1981
U.S. GOVERNMENT SECURITIES DEALERS

Transactions

Par value; averages of daily figures, in millions of dollars
1981
Item

1978

1979

Mar. p
Immediate delivery1
1 U.S. government securities.........

1981, week ending Wednesday

1980
Apr./7

May/>

May 20

May 27

June 3

June 10

June 17

June 24

10,285

13,183

23,848

21,360

21,554

20,848

21,449

24,992

23,287

21,664

24,215

6,173
392
1,889
965
867

7,915
454
2,417
1,121
1,276

14,114
388
4.182
2.758
2.408

13.134
374
3,390
2,135
2,328

12,359
459
3,954
1,982
2,574

11,679
593
3,867
1,658
3,052

12,745
355
4,586
1,619
2.144

15,045
406
3,905
3,270
2,364

13,680
451
3,586
2,836
2,732

13,314
584
3,008
2,386
2,371

14,011
304
5,525
2,118
2,257

Bv maturity

2
3
4
5
6

B ills..............................................
Other within 1 y e a r ..................
1-5 years......................................
5-10 years....................................
Over 10 years..............................

n.a.

By type o f customer

7

U.S. government securities
dealers..................................
U.S. government securities
brokers................................
All others2 ..................................

1,135

1,448

1.390

1,070

1,108

1,006

1.216

1,181

1,491

1,311

1,454

3,838
5,312

5,170
6,564

11.681
10.776

10.565
9,725

10,226
10,221

10,075
9,767

9.771
10,462

11.796
12.014

11,104
10,692

10,635
9,718

11,715
11,047

10 Federal agency securities.............

1,894

2,723

3,311

2,864

2,806

3,368

2,837

4,269

3,996

3,724

3,938

11 Certificates of d ep osit..................
12 Bankers acceptances......................
13 Commercial paper..........................
Futures and forward positions3,4 .

n.a.

n.a.

3.717
1.751
5.073
n.a.

3,518
1,627
5,302
n.a.

2,992
1,363
6,047
n.a.

2,823
1,104
6,193
n.a.

3.079
1,547
5,877
n.a.

4,004
1.651
6,572
n.a

3,686
1,887
5,669
n.a.

4,168
1,986
6,652
n.a.

4,829
1,528
5,834
n.a.

8
9

1. Before 1981, data for immediate transactions include forward transactions.
2. Includes, among others, all other dealers and brokers in commodities and
securities, nondealer departments of commercial banks, foreign banking agencies,
and the Federal Reserve System.
3. Futures contracts are standardized agreements arranged on an organized ex­
change in which parties commit to purchase or sell securities for delivery at a future
date.

1.44

U.S. GOVERNMENT SECURITIES DEALERS

4. Forward transactions are agreements arranged in the over-the-counter market
in which securities are purchased (sold) for delivery after 5 business days from the
date of the transaction for government securities (Treasury bills, notes, and bonds)
or after 30 days for mortgage-backed agency issues.
N o te s. Averages for transactions are based on number of trading days in the
period.
Transactions are market purchases and sales of U.S. government securities deal­
ers reporting to the Federal Reserve Bank of New York. The figures exclude
allotments of. and exchanges for, new U.S. government securities, redemptions of
called or matured securities, purchases or sales of securities under repurchase
agreement, reverse repurchase (resale), or similar contracts.

Positions and Sources of Financing

Averages of daily figures, in millions of dollars
1981, week ending Wednesday
Item

1978
Mar./>

Apr.P

May/7

Apr. 29

May 6

May 13

May 20

May 27

June 3

Positions
Net immediate1

1 U.S. government securities . ..

2,656

3,223

17,059

11,570

4,646

7,329

4,651

4,161

4,128

4,689

6,317

2
3
4
5
6

2.452
260
-9 2
40
-4

3.813
-325
-455
160
30

13.608
-2 7 9
817
650
2.263

8,471
142
399
530
2,027

1.820
226
499
157
1,944

4,361
232
332
405
1,998

1.944
182
428
246
1,850

1,176
485
441
46
2,013

1,745
198
221
31
1,932

1,635
112
994
-1 4
1,962

3,215

B ills........................................
Other within 1 y e a r ............
1-5 years................................
5-10 years..............................
Over 10 years........................

8
8

329
735
1,950

7 Federal agency securities.......

606

1,471

1,429

1,710

1,680

1,569

1,716

1,538

1,701

1,521

2,115

8 Certificates of d ep osit............
9 Bankers acceptances................
10 Commercial paper....................
Futures and forward positions

2,775
n.a.
n.a.
n.a.

2,794
n.a.
n.a.
n.a.

2.728
1.594
2.590
n.a.

2,117
1,705
2,721
n.a.

1,965
1,278
2,373
n.a.

1,924
1,614
2,639
n.a.

2.310
1.686
2,503
n.a.

1,871
1,270
2,402
n.a.

1,724
1,121
1,959
n.a.

1,746
1,040
2,180
n.a.

2,419
1,370
3,190
n.a.

10,693
28,370

10,926
31,332

10,123
31,342

11,256
28,715

28,393
28,845

28,393
27,281

Financing2
Reverse repurchase agreements3
Overnight and continuing---Term agreements....................
Repurchase agreements4 ............
13 Overnight and continuing . . . .
14 Term agreements............ ..

8,392
24,529

11
12

n.a.

10,667
30,592

10,393
27,385

n.a.
32.456
24,252

1. Immediate positions are net amounts (in terms of par values) of securities
owned by nonbank dealer firms and dealer departments of commercial banks on
a commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase (RPs). The maturities of some repur­
chase agreements are sufficiently long, however, to suggest that the securities
involved are not available for trading purposes. Securities owned, and hence dealer
positions, do not include securities to resell (reverse RPs). Before 1981, data for
immediate positions include forward positions.
2. Figures cover financing involving U.S. government and federal agency secu­
rities, negotiable CDs, bankers acceptances, and commercial paper.




9,466
25,704

n.a.
32,515
24,563

28,075
27,716

29,842
25,798

29,223
25,556

27,343
28,231

3. Includes all reverse repurchase agreements, including those that have been
arranged to make delivery on short sales and those for which the securities obtained
have been used as collateral on borrowings, i.e., matched agreements.
4. Includes both repurchase agreements undertaken to finance positions and
“matched book” repurchase agreements.
N o te . Data for positions are averages of daily figures, in terms of par value,
based on the number of trading days in the period. Positions are shown net and
are on a commitment basis. Data for financing are based on Wednesday figures,
in terms of actual money borrowed or lent.

Federal Finance
1.45

A33

FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt outstanding
Millions of dollars, end of period
1980
Agency

1976

1977

1981

1978
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

1 Federal and federally sponsored agencies1 ........................

103,848

112,472

137,063

188,743

193,229

195,056

194,926

198,828

200,434

2 Federal agencies....................................................................
3 Defense Department2........................................................
4 Export-Import Bank3,4 ....................................................
5 Federal Housing Administration5 ..................................
6
Government National Mortgage Association
participation certificates6 ..........................................
7 Postal Service7....................................................................
8 Tennessee Valley Authority............................................
9 United States Railway Association7 ..............................

22,419
1,113
8,574
575

22,760
983
8,671
581

23,488
968
8,711
588

27,941
631
10,696
486

28,606
610
11,250
477

28,769
600
11,239
476

28,596
591
11,201
468

29,397
576
11,881
464

29,502
566
11,868
459

4,120
2,998
4,935
104

3,743
2,431
6,015
336

3,141
2,364
7,460
356

2,842
1,770
11,010
506

2,817
1,770
11,190
492

2,817
1,770
11,375
492

2,817
1,770
11,550
199

2,817
1,770
11,680
209

2,775
1,770
11,845
219

10 Federally sponsored agencies1 ............................................
11 Federal Home Loan Banks..............................................
12 Federal Home Loan Mortgage Corporation................
13 Federal National Mortgage Association........................
14 Federal Land Banks..........................................................
15 Federal Intermediate Credit Banks................................
16 Banks for Cooperatives....................................................
17 Farm Credit Banks1 ..........................................................
18 Student Loan Marketing Association8 ..........................
19 Other....................................................................................

81,429
16,811
1,690
30,565
17,127
10,494
4,330
410
2

89,712
18,345
1,686
31,890
19,118
11,174
4,434
2,548
515
2

113,575
27,563
2,262
41,080
20,360
11,469
4,843
5,081
915
2

160,802
39,380
2,537
53,643
12,365
1,821
584
48,021
2,450
1

164,623
41,258
2,536
55,185
12,365
1,821
584
48,153
2,720
1

166,287
41,819
2,518
54,605
11,507
1,388
584
50,645
3,220
1

166,330
42,275
2,514
54,110
11,507
1,388
584
50,675
3,275
2

169,431
43,791
2,409
54,666
11,507
1,388
584
51,689
3,395
2

170,932
44,357
2,409
54,183
10,583
1,388
220
54,345
3,445
2

28,711

38,580

51,298

85,440

87,460

88,420

89,444

94,101

96,489

5,208
2,748
410
3,110
104

5,834
2,181
515
4,190
336

6,898
2,114
915
5,635
356

10,067
1,520
2,450
9,285
506

10,654
1,520
2,720
9,465
492

10,654
1,520
3,220
9,650
492

10,654
1,520
3,275
9,825
199

11,346
1,520
3,395
9,955
209

11,346
1,520
3,445
10,120
219

10,750
1,415
4,966

16,095
2,647
6,782

23,825
4,604
6,951

39,431
8,760
13,421

39,431
9,196
13,982

39,271
9,471
14,142

39,851
10,212
13,908

41,791
10,443
15,442

43,456
10,652
15,731

M emo :

20 Federal Financing Bank debt1, ..........................................
9
Lending to federal and federally sponsored agencies

21
22
23
24
25

Export-Import Bank4 ............................................................
Postal Service7........................................................................
Student Loan Marketing Association8 ..............................
Tennessee Valley Authority................................................
United States Railway Association7 ..................................
Other L ending 10

26 Farmers Home Administration............................................
27 Rural Electrification Administration..................................
28 Other........................................................................................

1. In September 1977 the Farm Credit Banks issued their first consolidated bonds,
and in January 1979 they began issuing these bonds on a regular basis to replace
the financing activities of the Federal Land Banks, the Federal Intermediate Credit
Banks, and the Banks for Cooperatives. Line 17 represents those consolidated
bonds outstanding, as well as any discount notes that have been issued. Lines 1
and 10 reflect the addition of this item.
2. Consists of mortgages assumed by the Defense Department between 1957 and
1963 under family housing and homeowners assistance programs.
3. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
4. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
5. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the se­
curities market.
6. Certificates of participation issued prior to fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Admin­
istration; Department of Health, Education, and Welfare; Department




of Housing and Urban Development; Small Business Administration; and the
Veterans Administration.
7. Off-budget.
8. Unlike other federally sponsored agencies, the Student Loan Marketing As­
sociation may borrow from the Federal Financing Bank (FFB) since its obligations
are guaranteed by the Department of Health, Education, and Welfare.
9. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB incurs
debt solely for the purpose of lending to other agencies, its debt is not included in
the main portion of the table in order to avoid double counting.
10. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any partic­
ular agency being generally small. The Farmers Home Administration item consists
exclusively of agency assets, while the Rural Electrification Administration entry
contains both agency assets and guaranteed loans.

A34
1.46

Domestic Financial Statistics □ July 1981
NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
1980

Type of issue or issuer,
1978

1979

1981

1980

Nov.

Dec.

Jan.'

Feb.'

Mar.'

Apr.

48,607

43,490

48,462

2,928

3,859

2,695

2,916

3,885

5,060

17,854
30,658

12,109
31,256

14,100
34,267

734
2,183

558
3,297

736
1,952

876
2,037

1,249
2,625

1,323
3,731

95

125

95

11

4

7

3

11

6

6 S ta te ....................................................................................................
7 Special district and statutory authority..........................................
8 Municipalities, counties, townships, school districts....................

6,632
24,156
17,718

4,314
23,434
15,617

5,304
26,972
16,090

323
1,638
955

127
2,332
1,395

478
1,437
773

530
1,437
945

349
1,986
1,540

544
2,697
1,813

9 Issues for new capital, total..........................................................

37,629

41,505

46,736

2,715

3,760

2,686

2,843

3,851

4,891

5,003
3,460
9,026
10,494
3,526
6,120

5,130
2,441
8,594
15,968
3,836
5,536

4,572
2,621
8,149
19,958
3,974
7,462

211
256
369
1,076
412
391

198
53
408
2,465
295
341

334
147
630
784
386
405

292
322
452
869
296
612

515

484
118
1,258
997
1,284
750

1 All issues, new and refunding1 ....................................................
Type o f issue
2 General obligation.............................. .............................................
3 R evenue................................................ ..............................................

4 Housing Assistance Administration2 ..............................................
5 U.S. government lo a n s ...................... .............................................
Type o f issuer

Use o f proceeds
10
11
12
13
14
15

Education............................................................................................
Transportation............................................ ................................................
Utilities and conservation .......................................................................
Social welfare......................................................................................
Industrial a id ......................................................................................
Other purposes..................................................................................

1. Par amounts of long-term issues based on date of sale.
2. Only bonds sold pursuant to the 1949 Housing Act, which are secured by
contract requiring the Housing Assistance Administration to make annual contri­
butions to tne local authority.

1.47

238
784
960
514
840

S o u r c e . Public Securities Association.

NEW SECURITY ISSUES of Corporations
Millions of dollars
Type of issue or issuer,
or use

1980
1978

1979

1981

1980
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

1 All issues1 ........................................................................

47,230

51,533

73,688

5,819

3,936

5,933

5,581

4,157

6,423'

6,511

2 Bonds................................................................................

36,872

40,208

53,199

3,284

2,164

3,044

3,386

2,834

4,275'

4,273

19,815
17,057

25,814
14,394

41,587
11,612

2,756
528

1,405
759

1,719
1,325

2,928
458

2,408
426

3,788'
497

3,668
605

Manufacturing................................................................
Commercial and miscellaneous....................................
Transportation................................................................
Public utility....................................................................
Communication..............................................................
10 Real estate and financial..............................................

9,572
5,246
2,007
7,092
3,373
9,586

9,678
3,948
3,119
8,153
4,219
11,094

15,409
6,688
3,329
9,556
6,683
11,534

623
320
240
769
763
569

132
442
147
565
147
732

609
509
165
314
653
793

1,635
231
353
800
62
306

1,140
356
45
593
272
430

1,064'
212
172
594
958
1,276'

1,355
301
105
774
553
1,181

11 Stocks ..............................................................................

10,358

11,325

20,490

2,535

1,772

2,889

2,195

1,323

2,148

2,238

2,832
7,526

3,574
7,751

3,632
16,858

543
1,992

256
1,516

241
2,648

364
1,831

149
1,174

298
1,850

85
153

1,241
1,816
263
5,140
264
1,631

1,679
2,623
255
5,171
303
12,931

4,839
5,245
549
6,230
567
3,059

851
400
117
526
67
574

418
509
53
227
113
452

844
908
95
669
65
308

609
603
124
562
14
284

204
589
81
260
31
159

735
816
17
414

531
477
146
717
56
310

Type o f offering

3 P u b lic..............................................................................

4 Private placement..........................................................
Industry group

5
6
7
8
9

Type

12 Preferred.....................................................................
13 Common..........................................................................
Industry group

14 Manufacturing................................................................
15 Commercial and miscellaneous....................................
16
17
18
19

Transportation................................................................
Public utility....................................................................
Communication..............................................................
Real estate and financial..............................................

1. Figures, which represent gross proceeds of issues maturing in more than one
year, sold for cash in the United States, are principal amount or number of units
multiplied by offering price. Excludes offerings of less than $100,000, secondary
offerings, undefined or exempted issues as defined in the Securities Act of




167

1933, employee stock plans, investment companies other than closed-end, intra­
corporate transactions, and sales to foreigners,
S o u r c e . Securities and Exchange Commission.

Corporate Finance

A35

1.48 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position
Millions of dollars
1980
Item

1979

1981

1980
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

In v e stm e n t CompaniesI

1 Sales of own shares2......................................................
2 Redemptions of own shares3........................................
3 Net sales..........................................................................

7,495
8,393
-8 9 8

15,266
12,012
3,254

1,523
1,362
161

1,289
1,086
203

1,242
1,720
-4 7 8

1,676
1,193
483

1,347
960
387

1,696
1,112
584

4 Assets4 ............................................................................
Cash position5 ............................................................
5
6
Other............................................................................

49,277
4,983
44,294

58,400
5,321
53,079

56,156
5,460
50,696

60,329
5,467
54,862

58,400
5,321
53,079

56,160
4,636
51,524

56,452
4,882
51,570

59,146
4,971
54,175

2,000
1,594
406
58,531
5,099'
53,432'

1,789
1,282
507
60,067
5,441
54,626

5. Also includes all U.S. government securities and other short-term debt se­
curities.

1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment
of capital gains distributions and share issue of conversions from one fund to another
in the same group.
3. Excludes share redemption resulting from conversions from one fund to an­
other in the same group.
4. Market value at end of period, less current liabilities.

N o te . Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the Se­
curities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.

1.49 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1979
Account

1978

1979

1980

1981

1980
Q3

Q4

Ql

Q2

Q3

Q4'

Q lr

1 Profits before tax........................................................

223.3

255.4

245.5

262.0

255.4

277.1

217.9

237.6

249.5

259.1

2 Profits tax liability..........................................................
3 Profits after ta x ..............................................................
4
Dividends....................................................................
Undistributed profits................................................
5
6 Capital consumption allowances..................................
7 Net cash flow..................................................................

83.0
140.3
44.6
95.7
122.9
218.6

87.6
167.7
50.2
117.6
139.5
257.1

82.3
163.1
56.0
107.1
158.3
265.4

86.4
173.6
50.2
123.4
142.6
266.0

87.2
168.2
51.6
116.6
146.4
263.0

94.2
182.9
53.9
129.0
151.7
280.7

71.5
146.4
55.7
90.7
155.4
246.1

78.5
159.1
56.7
102.4
160.5
267.9

85.2
164.3
57.7
106.6
165.4
272.0

91.1
168.0
59.6
108.4
170.7
279.1

S o u r c e . Survey o f Current Business (U .S . Department of Commerce).




A36

Domestic Financial Statistics □ July 1981

1.50 NONFINANCIAL CORPORATIONS Current Assets and Liabilities
Billions of dollars, except for ratio
1979
Account

1975

1976

1977

1980

1978
Q3

Q4

Ql

Q2

Q3

Q4

1 Current assets............................................................

759.0

826.8

902.1

1,030.0

1,169.5

1,200.9

1,235.2

1,233.8

1,255.8

1,279.9

2
3
4
5
6

Cash..................................................................................
U.S. government securities..........................................
Notes and accounts receivable....................................
Inventories......................................................................
Other................................................................................

82.1
19.0
272.1
315.9
69.9

88.2
23.4
292.8
342.4
80.1

95.8
17.6
324.7
374.8
89.2

104.5
16.3
383.8
426.9
98.5

103.7
15.8
453.0
489.4
107.7

116.1
15.6
456.8
501.7
110.8

110.2
15.1
471.2
519.5
119.3

111.5
13.8
464.2
525.7
118.7

113.2
16.3
479.2
525.1
122.0

120.8
17.0
491.1
525.1
125.9

7 Current liabilities......................................................

451.6

494.7

549.4

665.5

777.8

809.1

838.3

828.1

852.1

877.2

8 Notes and accounts payable........................................
9 Other................................................................................

264.2
187.4

281.9
212.8

313.2
236.2

373.7
291.7

438.8
339.0

456.3
352.8

467.9
370.4

463.1
364.9

477.3
374.8

498.2
379.0

10 Net working capital.....................................................

307.4

332.2

352.7

364.6

391.7

391.8

397.0

405.7

403.7

402.7

11 Memo: Current ratio *..................................................

1.681

1.672

1.642

1.548

1.504

1.484

1.474

1.490

1.474

1.459

1. Ratio of total current assets to total current liabilities.

All data in this table reflect the most current benchmarks. Complete data are
available upon request from the Flow of Funds Section, Division of Research and
Statistics.

N o te . For a description of this series, see “Working Capital of Nonfinancial
Corporations” in the July 1978 B u ll e t i n , pp. 533-37.

S o u r c e . Federal Trade Commission.

1.51 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1980
Industry

1979

1980

1981

19811
Q2

1 Total nonfarm business.............................................

Q3

Q4

Ql

Q21

Q31

Q41

270.46

295.63

320.51

294.36

296.23

299.58

312.24

311.87

322.88

333.09

51.07
47.61

58.91
56.90

63.99
63.89

59.38
56.32

58.19
58.21

59.77
58.86

61.24
63.27

60.28
61.71

64.90
65.56

68.65
64.80

11.38

13.51

16.91

12.81

13.86

15.28

16.20

15.93

17.51

17.87

4.03
4.01
4.31

4.25
4.01
3.82

4.39
3.65
4.10

4.06
4.27
3.76

3.98
4.06
4.18

4.54
3.77
3.39

4.23
3.85
3.66

4.10
3.17
4.21

4.41
3.09
4.07

4.81
4.55
4.35

27.65
6.31
79.26
34.83

28.12
7.32
81.79
36.99

28.93
8.33
85.22
41.09

27.91
7.12
81.07
37.66

28.14
7.44
81.19
36.97

27.54
7.41
82.91
36.11

27.69
8.36
83.43
40.32

28.98
8.40
84.55
40.54

30.26
7.98
84.12
40.97

28.73
8.57
88.33
42.43

Manufacturing
2 Durable goods industries..............................................
3 Nondurable goods industries........................................
Nonmanufacturing

4 Mining..............................................................................
5
6
7
8
9
10
11

Transportation
Railroad......................................................................
A ir................................................................................
Other............................................................................
Public utilities
Electric........................................................................
Gas and o th er............................................................
Trade and services........................................................
Communication and other2..........................................

1. Anticipated by business.
2. “Other” consists of construction; social services and membership organiza­
tions; and forestry, fisheries, and agricultural services.




S o u r c e . Survey o f Current Business (U.S. Dept, of Commerce).

Corporate Finance
1.52 DOMESTIC FINANCE COMPANIES

A37

Assets and Liabilities

Billions of dollars, end of period
1980
Account

1975

1976

1977

1978

1981

1979
Q2

Ql

Q3

Q4

Ql

A s s e ts

Accounts receivable, gross
Consumer........................................................................
B usiness..........................................................................
T o ta l............................................................................
Less: Reserves for unearned income and losses___
Accounts receivable, n e t..............................................
Cash and bank deposits................................................
Securities........................................................................
All other..........................................................................

36.0
39.3
75.3
9.4
65.9
2.9
1.0
11.8

38.6
44.7
83.4
10.5
72.9
2.6
1.1
12.6

44.0
55.2
99.2
12.7
86.5
2.6
.9
14.3

52.6
63.3
116.0
15.6
100.4
3.5
1.3
17.3

65.7
70.3
136.0
20.0
116.0

9 Total assets..................................................................

81.6

89.2

104.3

122.4

8.0
22.2

6.3
23.7

5.9
29.6

4.5
27.6
6.8

5.4
32.3
8.1

6.2
36.0
11.5

1
2
3

4
5
6
7
8

67.7
70.6
138.4
20.4
118.0

70.2
70.3
140.4
21.4
119.0

71.7
66.9
138.6
22.3
116.3

73.6
72.3
145.9
23.3
122.6

76.1
72.7
148.7
24.3
124.5

23.7

26.1

28.3

27.5

30.8

140.9

141.7

145.1

144.7

150.1

155.3

6.5
34.5

8.5
43.3

9.7
40.8

10.1
40.7

10.1
40.5

13.2
43.4

13.1
44.2

8.1
43.6
12.6

8.2
46.7
14.2

7.4
48.9
15.7

7.9
50.5
16.0

7.7
52.0
14.6

7.5
52.4
14.3

8.2
51.6
17.3

24.91

L iabilities

10 Bank loans.............. ........................................................
11 Commercial paper..........................................................
Debt
12 Short-term, n.e.c........................................................
13 Long-term, n.e.c.........................................................
14 Other............................................................................
15 Capital, surplus, and undivided profits......................

12.5

13.4

15.1

17.2

19.9

19.2

19.9

19.8

19.4

20.9

16 Total liabilities and capital.........................................

81.6

89.2

104.3

122.4

140.9

141.7

145.1

144.7

150.1

155.3

1. Beginning Q l 1979, asset items on lines 6, 7, and 8 are combined.
N o te . Components may not add to totals due to rounding.

1.53 DOMESTIC FINANCE COMPANIES Business Credit
Millions of dollars, seasonally adjusted except as noted

Type

Accounts
receivable
outstanding
Apr. 30,
19811

Changes in accounts
receivable

Extensions

Repayments

1981

1981

1981

Feb.

Mar.

Apr.

Feb.

Mar.

Apr.

Feb.

Mar.

Apr.

1 Total............................................................................................

74,065

280

-773

1,409

18,207

18,096

18,133

17,927

18,869

16,724

2 Retail automotive (commercial vehicles)....................................
3 Wholesale automotive....................................................................
4 Retail paper on business, industrial and
farm equipm ent......................................................................
5 Loans on commercial accounts receivable and factored com­
mercial accounts receivable..................................................
6 All other business credit................................................................

11,646
11,669

-1 6 0
-4 9 4

-2 9 5
-1,075

-2 1 3
890

885
5,351

749
5,050

790
5,865

1,045
5,845

1,044
6,125

1,003
4,975

23,872

591

556

56

1,800

1,788

1,384

1,209

1,232

1,328

8,019
18,859

-2 6 2
605

178
-1 3 7

139
537

7,792
2,379

8,142
2,367

7,735
2,359

8,054
1,774

7,964
2,504

7,596
1,822

1. Not seasonally adjusted.




A38

Domestic Financial Statistics □ July 1981

1.54 MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1980
Item

1978

1979

1981

1980
Jan.

Dec.

Feb.

Mar.

Apr.

May

June

Terms and yields in primary and secondary markets
P rimary M arkets

Conventional mortgages on new homes
Terms 1
1 Purchase price (thousands of dollars)..........

62.6
45.9
75.3
28.0
1.39
9.30

74.4
53.3
73.9
28.5
1.66
10.48

83.5
59.3
73.3
28.2
2.10
12.25

90.1
63.0
72.9
28.2
2.40
12.80

87.0
63.0
75.6
29.1
2.40
12.80

90.3
65.6
75.6
29.0
2.59
13.02

90.9
64.5
73.9
28.7
2.64
13.48

88.5
64.1
74.7
28.6
2.61
13.62

88.9
65.5
76.7
28.5
2.60
13.56

94.5
67.9
74.0
28.1
2.47
14.07

9.54
9.68

10.77
11.15

12.65
13.95

13.28
15.05

13.26
14.95

13.54
15.10

14.02
15.25

14.15
15.70'

14.10
16.35

14.54
16.40

10 GNMA securities6............................................

9.70
8.98

10.87
10.22

13.42
12.55

14.08
13.62

14.23
13.50

14.79
14.13

15.04
14.22

15.91
14.69r

16.03
15.31

16.31
15.02

FNMA auctions7
11
Government-underwritten loans................
12
Conventional loans......................................

9.77
10.01

11.17
11.77

14.11
14.43

15.21
15.54

14.87
14.95

15.24
15.05

15.67
15.33

16.54
15.66

16.43
16.44

16.17
16.30

57,436
38,919

2 Amount of loan (thousands of dollars)........

3
4
5
6

Loan/price ratio (percent)..............................
Maturity (years)..............................................
Fees and charges (percent of loan amount)2
Contract rate (percent per annum)..............

Yield (percent per annum)
1 FHLBB series3 ................................................

8 HUD series4......................................................
S econdary M arkets
Yield (percent per annum)

9 FHA mortgages (HUD series)5 ....................

Activity in seccindary marlkets
F ederal N ational M ortgage A ssociation
Mortgage holdings (end o f period)

57,434

57,362

18,358

57,390
38,955
18,435

38,972
18,462

38,878
18,484

8,100

855

185

161

10,179
6,409

8,044
3,278

403
3,278

241
3,063

244
2,683

12,978
6,747.2

8,860
3,921

8,605
4,002

242.1
110.8

210.7
93.0

9,933.0
5,111

4,495
2,344

3,639
1,749

84.8
54.1

3,064
1,243
1,165

4,035
1,102
1,957

5,067
1,033
2,830

28 Purchases......................................................................
29 S a le s..............................................................................

6,525
6,211

5,717
4,544

Mortgage com m itm ents 1
1
30 Contracted (during period)........................................
31 Outstanding (end of period)......................................

7,451
1,410

5,542
797

13 T o ta l..............................................................................
14 FHA-insured............................................................
15 VA-guaranteed........................................................
16 Conventional............................................................

43,311
21,243
10,544
11,524

51,091
24,489
10,496
16,106

38,9698

57,327

57,327
38,969

18,358

12,303
9

10,805

18,959
9,185

57,586
39,030

18,517

18,556

206

283

320
2,173

383
2,031

802
2,328

155.3
104.7

145.3
104.7

139.1
114.5

2,048
179.1

237.6
216.1

32.0
30.3

108.6
79.1

149.2
97.6

126.9
92.0

281.3
113.2

307.1
142.0

5,067
1,033
2,830

5,039
1,029
2,825

5,107
1,025
2,883

5,161
2,931

5,176
1,017
2,952

5,223
1,013
2,988

3,722
2,526

285
48

152
168

174
94

148
127

125
97

480
422

3,859
447

126
653

203
487

294
394

768
699

886
678

1,016
322

M ortgage transactions (during period)

17 Purchases......................................................................
18 S a le s..............................................................................

0

0

0

0

0

0

0

M ortgage commitments9

19 Contracted (during period)........................................
20 Outstanding (end or period)......................................
Auction o f 4-month commitments to buy

Government-underwritten loans
Offered......................................................................
Accepted....................................................................
Conventional loans
23
Offered......................................................................
24
Accepted....................................................................
21
22

F ederal H ome L oan M ortgage C orporation
M ortgage holdings (end o f p e rio d )10

25 T o ta l..............................................................................
26
FHA/VA....................................................................
27
Conventional............................................................

1,021

Mortgage transactions (during period)

1. Weighted averages based on sample surveys of mortgages originated by major
institutional lender groups. Compiled by the Federal Home Loan Bank Board in
cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and “points” paid (by the borrower
or the seller) in order to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages,
rounded to the nearest 5 basis points; from Department of Housing and Urban
Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal Housing
Administration-insured first mortgages for immediate delivery in the private sec­
ondary market. Any gaps in data are due to periods of adjustment to changes in
maximum permissible contract rates.
6. Average net yields to investors on Government National Mortgage Associ­
ation 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 unweighted averages of Monday
quotations for the month.
7. Average gross yields (before deduction of 38 basis points for mortgage serv­
icing) on accepted bids in Federal National Mortgage Association’s auctions of 4month commitments to purchase home mortgages, assuming prepayment in 12
years for 30-year mortgages. No adjustments are made for FNMA commitment
fees or stock related requirements. Monthly figures are unweighted averages for
auctions conducted within the month.
8. Beginning March 1980, FHA-insured and VA-guaranteed mortgage holdings
in lines 14 and 15 are combined.
9. Includes some multifamily and nonprofit hospital loan commitments in ad­
dition to 1- to 4-family loan commitments accepted in FNMA’s free market auction
system, and through the FNMA-GNMA tandem plans.
10. Includes participation as well as whole loans.
11. Includes conventional and government-underwritten loans.

Real Estate Debt
1.55

A39

MORTGAGE DEBT OUTSTANDING
M illions o f dollars, end o f period
1980
Type of holder, and type of property

1978

1979

1981

1980
Ql

Q2

Q3

Q4

Ql

1,169,412

1,326,750

1,451,840

1,357,660

1,380,928

1,414,881

1,451,840

1,474,943c

1- to 4-family..........................................................................
Multifamily..............................................................................
Commercial............................................................................
Farm ........................................................................................

765,217
121,138
211,851
71,206

878,931
128,852
236,451
82,516

960,422
136,580
258,338
96,500

897,608
130,363
242,776
86,913

910,286
132,194
247,444
91,004

935,393
134,193
251,651
93,644

960,422
136,580
258,338
96,500

973,601
139,087‘
262,140
100,115

6 Major financial institutions..................................................
7 Commercial banks1............................................................
8
1- to 4-family..................................................................
9
Multifamily......................................................................
10
Commercial....................................................................
Farm ................................................................................
11

848,177
214,045
129,167
10,266
66.115
8,497

938,567
245,187
149,460
11,180
75,957
8,590

998,386
264,602
160,746
12,304
82,688
8,864

951,276
250,702
152,553
11,557
77,993
8,599

958,750
253,103
153,753
11,764
79,110
8,476

977,281
258,003
156,737
11,997
80,626
8,643

998,386
264,602
160,746
12,304
82,688
8,864

1,008,265
268,102
162,872
12,467
83,782
8,981

1 All holders..............................................................................
2
3
4
5

12
13
14
15
16

Mutual savings banks........................................................
1- to 4-family..................................................................
Multifamily......................................................................
Commercial....................................................................
Farm ................................................................................

95,157
62,252
16,529
16,319
57

98,908
64,706
17,340
16,963
59

99,827
65,307
17,180
17,120
60

99,151
64,865
17,223
17,004
59

99,150
64,864
17,223
17,004
59

99,306
64,966
17,249
17,031
60

99,827
65,307
17,340
17,120
60

99,840
65,316
17,342
17,122
60

17
18
19
20

Savings and loan associations..........................................
1- to 4-family..................................................................
Multifamily......................................................................
Commercial....................................................................

432,808
356,114
36,053
40,461

475,688
394,345
37,579
43,764

502,812
419,446
38,113
45,253

478,952
398,009
37,215
43,728

481,042
399,746
37,329
43,967

491,895
409,896
37,728
44,271

502,812
419,446
38,113
45,253

507,040
422,964
38,443
45,633

21
22
23
24
25

Life insurance com panies................................................
1- to 4-family..................................................................
Multifamily......................................................................
Commercial....................................................................
Farm................................................................................

106,167
14,436
19,000
62,232
10,499

118,784
16,193
19,274
71,137
12,180

131,145
17,911
19,614
80,776
12,844

122,471
16,850
19,590
73,618
12,413

125,455
17,796
19,284
75,693
12,682

128,077
17,996
19,357
77,995
12,729

131,145
17,911
19,614
80,776
12,844

133,283
18,203
19,934
82,093
13,053

26 Federal and related agencies................................................
Government National Mortgage Association................
27
28
1- to 4-family..................................................................
29
Multifamily......................................................................

81,739
3,509
877
2,632

97,084
3,852
763
3,089

114,300
4,642
704
3,938

103,921
3,919
749
3,170

108,539
4,466
736
3,730

110,526
4,389
719
3,670

114,300
4,642
704
3,938

116,306
4,966
730
4,236

30
31
32
33
34

Farmers Home Administration........................................
1- to 4-family..................................................................
Multifamily......................................................................
Commercial....................................................................
Farm ................................................................................

926
288
320
101
217

1,274
417
71
174
612

3,492
916
610
411
1.555

2,845
1,139
408
409
889

3,375
1,383
636
402
954

3,525
978
774
370
1,403

3,492
916
610
411
1,555

2,837
1,321
528
479
509

35
36
37

Federal Housing and Veterans Administration............
1- to 4-family..................................................................
Multifamily......................................................................

5,305
1,673
3,632

5,555
1,955
3,600

5,640
2,051
3,589

5,621
2,022
3,599

5,691
2,085
3,606

5,600
1,986
3,614

5,640
2,051
3,589

5,723
2,098
3,625

38
39
40

Federal National Mortgage Association........................
1- to 4-family..................................................................
Multifamily......................................................................

43,311
37,579
5,732

51,091
45,488
5,603

57,327
51,775
5,552

53,990
48,394
5,596

55,419
49,837
5,582

55,632
50,071
5,561

57,327
51,775
5,552

57,362
51,842
5,520

41
42
43

Federal Land Banks..........................................................
1- to 4-family..................................................................
Farm ................................................................................

25,624
927
24,697

31,277
1,552
29,725

38,131
2,099
36,032

33,311
1,708
31,603

35,574
1,893
33,681

36,837
1,985
34,852

38,131
2,099
36,032

40,258
2,228
38,030

44
45
46

Federal Home Loan Mortgage Corporation................
1- to 4-family..................................................................
Multifamily......................................................................

3,064
2,407
657

4,035
3,059
976

5,068
3,873
1,195

4,235
3,210
1,025

4,014
3,037
977

4,543
3,459
1,084

5,068
3,873
1,195

5,160
3,952
1,208

47 Mortgage pools or trusts2 ....................................................
48
Government National Mortgage Association................
49
1- to 4-family........................................................ .........
50
Multifamily......................................................................

88,633
54,347
52,732
1,615

119,278
76,401
74,546
1,855

142,258
93,874
91,602
2,272

124,632
80,843
78,872
1,971

129,647
84,282
82,208
2,074

136,583
89,452
87,276
2,176

142,258
93,874
91,602
2,272

147,251
97,184
94,810
2,374

51
52
53

Federal Home Loan Mortgage Corporation................
1- to 4-family..................................................................
Multifamily......................................................................

11,892
9,657
2,235

15,180
12,149
3,031

16,854
13,471
3,383

15,454
12,359
3,095

16,120
12,886
3,234

16,659
13,318
3,341

16,854
13,471
3,383

17,100
13,680
3,420

54
55
56
57
58

Farmers Home Administration........................................
1- to 4-family..................................................................
Multifamily......................................................................
Commercial....................................................................
Farm ................................................................................

22,394
13,400
1,116
3,560
4,318

27,697
14,884
2,163
4,328
6,322

31,530
16,683
2,612
5,271
6,964

28,335
14,926
2,159
4,495
6,755

29,245
15,224
2,159
4,763
7,099

30,472
16,226
2,235
5,059
6,952

31,530
16,683
2,612
5,271
6,964

32,967
16,640
2,825
5,382
8,120

59 Individual and others3 ..........................................................
1- to 4-family......................................................................
60
Multifamily..........................................................................
61
62
Commercial........................................................................
63
Farm ....................................................................................

150,863
83,708
21,351
22,883
22,921

171,821
99,414
23,251
24,128
25,028

196,896
113,838
26,058
26,819
30,181

177,831
101,952
23,755
25,529
26,595

183,992
104,838
24,596
26,505
28,053

190,491
109,780
25,407
26,299
29,005

196,896
113,838
26,058
26,819
30,181

203,121
116,945
27,165
27,649
31,362

1. Includes loans held by nondeposit trust companies but not bank trust de­
partments.
2. Outstanding principal balances of mortgages backing securities insured or
guaranteed by the agency indicated.
3. Other holders include mortgage companies, real estate investment trusts, state
and local credit agencies, state and local retirement funds, noninsured pension
funds, credit unions, and U.S. agencies for which amounts are small or separate
data are not readily available.




N o te . Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve in conjunction with the
Federal Home Loan Bank Board and the Department of Commerce. Separation
of nonfarm mortgage debt by type of property, if not reported directly, and in­
terpolations and extrapolations when required, are estimated mainly by the Federal
Reserve. Multifamily debt refers to loans on structures of five or more units.

A40

Domestic Financial Statistics □ July 1981

1.56 CONSUMER INSTALLMENT CREDIT1Total Outstanding, and Net Change
Millions of dollars
1980
Holder, and type of credit

1978

1979

1981

1980
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Amounts outstanding (end of period)
1 Total ............................................................

273,645

312,024

313,435

308,051

313,435

310,554

309,188

310,766

313,419

315,465

136,016
54,298
44,334
25,987
7,097
3,220
2,693

154,177
68,318
46,517
28,119
8,424
3,729
2,740

145,765
76,756
44,041
29,410
9,911
4,717
2,835

145,147
75,690
43,606
26,469
9,687
4,662
2,790

145,765
76,756
44,041
29,410
9,911
4,717
2,835

143,749
77,131
43,601
28,300
10,023
4,929
2,821

142,030
78,090
43,776
27,329
10,173
4,958
2,832

141,897
79,490
44,212
26,965
10,458
4,898
2,846

142,070
81,033
44,390
27,227
10,792
5,046
2,861

142,143
81,794
45,055
27,319
11,148
5,157
2,849

9 Autom obile................................................
10 Commercial b ank s................................
11
Indirect paper....................................
12
Direct loans........................................
13 Credit unions..........................................
14 Finance companies................................

101,647
60,510
33,850
26,660
21,200
19,937

116,362
67,367
38,338
29,029
22,244
26,751

116,327
61,025
34,857
26,168
21,060
34,242

116,517
61,848
35,284
26,564
20,852
33,817

116,327
61,025
34,857
26,168
21,060
34,242

115,262
59,608
33,947
25,661
20,850
34,804

115,677
59,061
33,667
25,394
20,933
35,683

117,517
59,378
34,016
25,362
21,142
36,997

118,479
59,252
33,931
25,321
21,227
38,000

118,932
59,169
33,913
25,256
21,545
38,218

15 Revolving....................................................
16 Commercial b ank s................................
17 Retailers..................................................
18 Gasoline companies..............................

48,309
24,341
20,748
3,220

56,937
29,862
23,346
3,729

59,862
30,001
25,144
4,717

55,304
28,360
22,282
4,662

59,862
30,001
25,144
4,717

58,985
29,952
24,104
4,929

57,566
29,412
23,196
4,958

56,831
29,051
22,882
4,898

57,322
29,127
23,149
5,046

57,524
29,096
23,271
5,157

19 Mobile h om e..............................................
20 Commercial b ank s................................
21
Finance companies................................
22
Savings and loan s..................................
23
Credit unions..........................................

15,235
9,545
3,152
2,067
471

16,838
10,647
3,390
2,307
494

17,327
10,376
3,745
2,737
469

17,293
10,452
3,702
2,675
464

17,327
10,376
3,745
2,737
469

17,244
10,271
3,741
2,768
464

17,189
10,174
3,740
2,809
466

17,273
10,153
3,762
2,888
470

17,422
10,142
3,828
2,980
472

17,626
10,159
3,909
3,079
479

24 Other............................................................
25
Commercial b ank s................................
26 Finance companies................................
27
Credit unions..........................................
28 Retailers..................................................
29 Savings and loan s..................................
30 Mutual savings banks............................

108,454
41,620
31,209
22,663
5,239
5,030
2,693

121,887
46,301
38,177
23,779
4,773
6,117
2,740

119,919
44,363
38,769
22,512
4,266
7,174
2,835

118,937
44,487
38,171
22,290
4,187
7,012
2,790

119,919
44,363
38,769
22,512
4,266
7,174
2,835

119,063
43,918
38,586
22,287
4,196
7,255
2,821

118,756
43,383
38,667
22,377
4,133
7,364
2,832

119,145
43,315
38,731
22,600
4,083
7,570
2,846

120,196
43,549
39,205
22,691
4,078
7,812
2,861

121,383
43,719
39,667
23,031
4,048
8,069
2,849

By m ajor holder
2 Commercial b an k s....................................

3 Finance companies....................................
4 Credit unions..............................................
5 Retailers2 ....................................................
6 Savings and loan s......................................
7 Gasoline companies..................................
8 Mutual savings banks................................
By m ajor type o f credit

Net change (during period)3
31 Total............................................................

43,079

38,381

1,410

839

1,619

869

1,996

3,108

2,331

1,346

23,641
9,430
6,729
2,497
7
257
518

18,161
14,020
2,185
2,132
1,327
509
47

-8,412
8,438
-2,475
1,291
1,485
988
95

-1 2 0
594
218
52
-1 4
72
37

-2 7 6
860
378
316
190
83
68

-1,357
1,113
288
409
232
106
78

-5 4 4
1,530
444
103
254
209
0

612
1,539
287
253
418
-6
5

-3 4 5
1,253
272
531
421
141
58

-1 4
409
391
-3
519
67
-2 3

39 A utom obile................................................
40 Commercial b ank s................................
41
Indirect paper....................................
42
Direct loans........................................
43
Credit unions..........................................
44 Finance companies................................

18,736
10,933
6,471
4,462
3,101
4,702

14,715
6,857
4,488
2,369
1,044
6,814

-3 5
-6,342
-3,481
-2,861
-1,184
7,491

245
-1 3 8
-4 4
-9 4
101
282

302
-491
-181
-3 1 0
174
619

-6 3
-1,253
-8 3 9
-4 1 4
206
984

979
-3 4 6
-2 2 9
-1 1 7
211
1,114

1,682
229
268
-3 9
132
1,321

428
-461
-2 5 6
-2 0 5
142
747

-1 9 5
-2 0 8
-8 3
-1 2 5
160
-1 4 7

45 Revolving................................................
46 Commercial b ank s............................
47 Retailers..................................................
48
Gasoline companies..........................

9,035
5,967
2,811
257

8,628
5,521
2,598
509

2,925
139
1,798
988

265
121
72
72

616
211
322
83

557
59
392
106

441
166
66
209

587
346
247
-6

838
153
544
141

350
230
53
67

49 Mobile h om e..............................................
50 Commercial b ank s................................
51
Finance companies............................
52 Savings and loan s..............................
53
Credit unions..........................................

286
419
74
-2 7 6
69

1,603
1,102
238
240
23

488
-271
355
430
-2 5

24
-3 3
44
11
2

66
-3 4
48
47
5

-2 4
-8 5
15
46
0

-4 7
-1 0 2
18
31
6

88
-3 5
25
97
1

145
-1 5
58
99
3

243
7
78
152
6

54 Other............................................................
55
Commercial b ank s................................
56
Finance companies................................
57 Credit unions..........................................
58
Retailers..................................................
59
Savings and loan s..................................
60 Mutual savings banks............................

15,022
6,322
4,654
3,559
-3 1 4
283
518

13,435
4,681
6,968
1,118
-4 6 6
1,087
47

-1,968
-1,938
592
-1,266
-5 0 7
1,056
95

305
-7 0
268
115
-2 0
-2 5
37

635
38
193
199
-6

399
-7 8
114
82
17
186
78

623
-2 6 2
398
227

751
72
193
154
6
321
5

920
-2 2
448
127
-1 3
322

948
-4 3
478
225
-5 6
367

58

-2 3

By m ajor holder
32 Commercial b ank s....................................

33
34
35
36
37
38

Finance, companies....................................
Credit unions..............................................
Retailers2 ....................................................
Savings and loan s......................................
Gasoline companies..................................
Mutual savings banks................................
By m ajor type o f credit

1.
The Board’s series cover most short- and intermediate-term credit extended
to individuals through regular business channels, usually to finance the purchase
of consumer goods and services or to refinance debts incurred for such purposes,
and scheduled to be repaid (or with the option of repayment) in two or more
installments.




143

68

37
223

0

2. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
3. Net change equals extensions minus liquidations (repayments, charge-offs,
and other credit); figures for all months are seasonally adjusted.

Consumer D ebt
1.57

A41

CONSUMER INSTALLMENT CREDIT Extensions and Liquidations
Millions of dollars; monthly data are seasonally adjusted.
1981

1980
Holder, and type of credit

1978

1979

1980
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Extensions

297,668

324,777

305,887

25,991

27,149

27,059

28,706

29,822

28,878

28,149

142,433
50,505
38,111
44,571
3,724
16,017
2,307

154,733
61,518
34,926
47,676
5,901
18,005
2,018

133,605
60,801
29,594
50,959
6,621
22,402
1,905

11,432
4,852
2,795
4,250
444
2,024
194

11,484
5,185
3,035
4,497
658
2,061
229

10,397
5,904
2,994
4,673
715
2,130
246

11,648
6,193
3,167
4,500
751
2,284
163

12,676
5,911
3,153
4,685
1,038
2,180
179

11,986
5,218
3,181
5,002
985
2,272
234

12,055
4,937
3,212
4,486
1,068
2,243
148

Commercial b ank s....................................................
Indirect paper........................................................
Direct loans............................................................
Credit unions..............................................................
Finance companies....................................................

87,981
52,969
29,342
23,627
18,539
16,473

93,901
53,554
29,623
23,931
17,397
22,950

83,002
40,657
22,269
18,388
15,294
27,051

7,117
3,552
1,962
1,590
1,402
2,163

7,234
3,271
1,857
1,414
1,538
2,425

8,333
3,560
1,944
1,616
1,613
3,160

8,700
4,117
2,365
1,752
1,586
2,997

7,205
3,438
1,929
1,509
1,589
2,178

7,320
3,627
2,071
1,556
1,608
2,085

15 Revolving........................................................................
16 Commercial b ank s....................................................
17 Retailers......................................................................
18 Gasoline companies..................................................

105,125
51,333
37,775
16,017

120,174
61,048
41,121
18,005

129,580
61,847
45,331
22,402

10,953
5,155
3,774
2,024

11,614
5,554
3,999
2,061

11,483
5,185
4,168
2,130

11,867
5,602
3,981
2,284

12,071
5,695
4,196
2,180

12,352
5,561
4,519
2,272

11,904
5,613
4,048
2,243

19 Mobile h om e..................................................................
20 Commercial b an k s....................................................
21
Finance companies....................................................
22
Savings and loan s......................................................
23
Credit unions..............................................................

5,412
3,697
886
609
220

6,471
4,542
797
948
184

5,098
2,942
898
1,146
113

424
243
93
74
14

479
254
89
119
17

383
171
81
119
12

409
185
88
118
18

641
259
88
269
25

551
251
100
184
16

609
250
112
230
17

24 Other................................................................................
25
Commercial b an k s....................................................
26
Finance companies....................................................
27
Credit unions..............................................................
28
Retailers......................................................................
29
Savings and loan s......................................................
30 Mutual savings banks................................................

99,150
34,434
33,146
19,352
6,796
3,115
2,307

104,231
35,589
37,771
17,345
6,555
4,953
2,018

88,207
28,159
32,852
14,187
5,628
5,476
1,905

7,497
2,482
2,596
1,379
476
370
194

7,822
2,405
2,671
1,480
498
539
229

7,956
2,443
2,776
1,390
505
596
246

8,097
2,301
2,945
1,536
519
633
163

8,410
2,605
2,826
1,542
489
769
179

8,770
2,736
2,940
1,576
483
801
234

8,316
2,565
2,740
1,587
438
838
148

1 Total...........................................................................
By m ajor holder
2 Commercial b an k s........................................................

3 Finance companies........................................................

4 Credit unions..................................................................
5
6
7
8

Retailers1 ........................................................................
Savings and loan s..........................................................
Gasoline companies......................................................
Mutual savings banks....................................................
By m ajor type o f credit

9 Autom obile....................................................................
10
11
12
13
14

7,237
2,598
1,230
1,368
1,592 c
3,047

Liquidations

254,589

286,396

304,477

25,152

25,530

26,190

26,710

26,714

26,547

26,803

118,792
41,075
31,382
42,074
3,717
15,760
1,789

136,572
47,498
32,741
45,544
4,574
17,496
1,971

142,017
52,363
32,069
49,668
5,136
21,414
1,810

11,552
4,258
2,577
4,198
458
1,952
157

11,760
4,325
2,657
4,181
468
1,978
161

11,754
4,791
2,706
4,264
483
2,024
168

12,192
4,663
2,723
4,397
497
2,075
163

12,064
4,372
2,866
4,432
620
2,186
174

12,331
3,965
2,909
4,471
564
2,131
176

12,069
4,528
2,821
4,489
549
2,176
171

39 A utom obile....................................................................
40 Commercial b an k s....................................................
41
Indirect paper........................................................
42
Direct loans.................... ....................................
43
Credit unions..............................................................
44
Finance companies....................................................

69,245
42,036
22,871
19,165
15,438
11,771

79,186
46,697
25,135
21,562
16,353
16,136

83,037
46,999
25,750
21,249
16,478
19,560

6,872
3,690
2,006
1,684
1,301
1,881

6,932
3,762
2,038
1,724
1,364
1,806

7,300
3,851
2,069
1,782
1,386
2,063

7,354
3,906
2,173
1,733
1,402
2,046

7,018
3,888
2,097
1,791
1,454
1,676

6,777
3,899
2,185
1,714
1,447
1,431

7,515
3,835
2,154
1,681
1,448
2,232

45 Revolving........................................................................
46
Commercial b ank s....................................................
47
Retailers......................................................................
48
Gasoline companies..................................................

96,090
45,366
34,964
15,760

111,546
55,527
38,523
17,496

126,655
61,708
43,533
21,414

10,688
5,034
3,702
1,952

10,998
5,343
3,677
1,978

10,926
5,126
3,776
2,024

11,426
5,436
3,915
2,075

11,484
5,349
3,949
2,186

11,514
5,408
3,975
2,131

11,554
5,383
3,995
2,176

49 Mobile h om e..................................................................
50
Commercial b an k s....................................................
51
Finance companies....................................................
52
Savings and loan s......................................................
53
Credit unions..............................................................

5,126
3,278
812
885
151

4,868
3,440
559
708
161

4,610
3,213
543
716
138

400
276
49
63
12

413
288
41
72
12

407
256
66
73
12

456
287
70
87
12

553
294
63
172
24

406
266
42
85
13

366
243
34
78
11

54 Other................................................................................
55
Commercial b an k s....................................................
56
Finance companies....................................................
57
Credit unions..............................................................
58
Retailers......................................................................
59
Savings and loan s......................................................
60 Mutual savings banks................................................

84,128
28,112
28,492
15,793
7,110
2,832
1,789

90,796
30,908
30,803
16,227
7,021
3,866
1,971

90,175
30,097
32,260
15,453
6,135
4,420
1,810

7,192
2,552
2,328
1,264
496
395
157

7,187
2,367
2,478
1,281
504
396
161

7,557
2,521
2,662
1,308
488
410
168

7,474
2,563
2,547
1,309
482
410
163

7,659
2,533
2,633
1,388
483
448
174

7,850
2,758
2,492
1,449
496
479
176

7,368
2,608
2,262
1,362
494
471
171

31 Total...........................................................................
By m ajor holder

32
33
34
35
36
37
38

Commercial b ank s........................................................
Finance companies........................................................
Credit unions..................................................................
Retailers1 ........................................................................
Savings and loan s..........................................................
Gasoline companies......................................................
Mutual savings banks....................................................
By m ajor type o f credit

1.
Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.




A42

Domestic Financial Statistics □ July 1981

1.58 FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1978
Transaction category, sector

1975

1976

1977

1978

1979

1979

1980

1980
HI

H2

HI

H2

HI

H2

Nonfinancial sectors
1 Total funds raised......................................................
2 Excluding equities..........................................................

210.8

271.9

338.5

400.4

394.9

365.4

384.8

416.0

380.5

408.2

325.8

404.9

200.7

261.0

335.3

398.3

390.6

353.9

387.4

409.2

377.7

402.3

318.0

389.7

85.4
85.8
- .4
125.4
10.1
115.3
112.1
9.9
102.2
98.4
16.1
27.2

69.0
69.1
- .1
202.8
10.8
192.0
182.0
10.5
171.5
123.5
15.7
22.8

56.8
57.6
- .9
281.7
3.1
278.6
267.8
2.7
265.1
175.6
23.7
21.0

53.7
55.1
-1 .4
346.7
2.1
344.6
314.4
2.6
311.8
196.6
28.3
20.1

37.4
38.8
- 1 .4
357.6
4.3
353.2
336.4
3.5
333.0
199.9
18.9
21.2

79.2
79.8
-.6
286.2
11.5
274.7
256.7
9.5
247.2
179.7
25.0
27.9

61.4
62.3
-.9
323.4
- 2 .6
326.0
302.8
-1 .8
304.6
188.3
27.8
20.6

46.0
47.9
- 1 .9
370.0
6.8
363.2
326.1
7.0
319.1
205.0
28.7
19.6

28.6
30.9
-2 .3
351.9
2.8
349.1
338.6
2.8
335.8
198.8
16.0
22.4

46.1
46.6
- .5
362.1
5.9
356.2
333.0
4.1
328.9
201.1
21.8
19.9

64.7
65.3
- .6
261.1
7.8
253.4
231.9
6.0
225.9
171.9
18.5
33.6

93.7
94.3
-.6
311.2
15.3
295.9
281.5
13.0
268.5
187.4
31.6
22.3

By sector and instrument

3 U.S. government............................................................
4
Treasury securities....................................................
5
Agency issues and mortgages..................................
6 All other nonfinancial sectors......................................
7 Corporate equities....................................................
8 Debt instruments........................................................
9
Private domestic nonfinancial sectors....................
10
Corporate eq u ities................................................
11
Debt instruments....................................................
12
Debt capital instruments..................................
13
State and local obligations............................
14
Corporate bonds............................................
15
16
17
18
19
20
21
22
23

Home Mortgages........................................
Multifamily residential..............................
Commercial................................................
Farm ............................................................
Other debt instruments....................................
Consumer credit............................................
Bank loans n.e.c.............................................
Open market p ap er......................................
Other................................................................

39.5
*
11.0
4.6
3.8
9.7
-1 2 .3
-2 .6
9.0

63.6
1.8
13.4
6.1
48.0
25.6
4.0
4.0
14.4

96.3
7.4
18.4
8.8
89.5
40.6
27.0
2.9
19.0

104.6
10.2
23.3
10.2
115.2
50.6
37.3
5.2
22.2

109.1
8.9
25.7
16.2
133.0
44.2
50.6
10.9
27.3

81.5
8.7
21.6
14.0
67.2
3.1
37.9
5.8
20.4

100.1
9.3
21.2
9.3
116.3
50.1
43.1
5.3
17.8

109.1
11.2
25.4
11.1
114.1
51.0
31.4
5.1
26.5

109.8
8.1
26.0
16.6
137.0
48.3
48.2
12.0
28.4

108.5
9.7
25.4
15.9
127.8
39.0
52.9
9.7
26.2

70.7
8.1
25.5
15.5
54.0
- 4 .3
9.7
29.7
18.9

92.8
9.0
19.3
12.4
81.1
8.9
65.0
-1 8 .1
25.2

24
25
26
27
28
29
30
31
32
33
34
35
36

By borrowing sector..............................................
State and local governments............................
Households..........................................................
Farm ....................................................................
Nonfarm noncorporate......................................
Corporate............................................................
Foreign.................................................. ......................
Corporate eq u ities.......................... ......................
Debt instruments.............................. ......................
B on d s............................................ ......................
Bank loans n.e.c.................................................
Open market p ap er.................... ......................
U.S. government lo a n s ....................................

112.1
13.7
49.7
8.8
2.0
37.9
13.3
.2
13.2
6.2
3.9
.3
2.8

182.0
15.2
90.5
10.9
4.7
60.7
20.8
.3
20.5
8.6
6.8
1.9
3.3

267.8
20.4
139.9
14.7
12.9
79.9
13.9
.4
13.5
5.1
3.1
2.4
3.0

314.4
23.6
162.6
18.1
15.4
94.8
32.3
- .5
32.8
4.0
18.3
6.6
3.9

336.4
15.5
164.9
25.8
15.9
114.3
21.2
.9
20.3
3.9
2.3
11.2
3.0

254.2
20.7
100.8
19.0
12.5
101.1
29.9
2.2
27.7
.8
11.8
10.1
5.0

302.8
21.0
156.1
15.3
16.4
93.9
20.6
- .8
21.4
5.0
9.3
3.6
3.6

326.1
26.1
169.1
20.8
14.4
95.7
43.9
- .2
44.1
3.0
27.3
9.6
4.2

338.6
13.0
167.6
23.5
15.5
118.9
13.3
*
13.3
3.0
1.0
6.1
3.1

333.0
18.0
161.2
28.1
15.9
109.7
29.1
1.7
27.3
4.7
3.5
16.3
2.8

231.9
16.6
88.7
20.9
10.3
95.4
29.3
1.8
27.5
2.0
4.4
15.7
5.4

281.5
30.4
113.7
14.7
15.5
107.2
29.7
2.3
27.4
- .4
18.7
4.5
4.6

Financial sectors
37 Total funds raised......................................................

12.7

24.1

54.0

81.4

88.5

70.8

80.7

82.1

86.3

90.7

53.7

84.2

13.5
2.3
10.3
.9
-.8
.6
- 1 .4
2.9
2.3
- 3 .7
1.1
-4 .0

18.6
3.3
15.7
- .4
5.5
1.0
4.4
5.8
2.1
-3 .7
2.2
- 2 .0

26.3
7.0
20.5
-1 .2
27.7
.9
26.9
10.1
3.1
- .3
9.6
4.3

41.4
23.1
18.3

52.4
24.3
28.1

47.5
24.3
23.2
23.3
3.4
19.8
7.2
-.9
1.0
5.4
7.1

40.5
2.0
38.4
8.7
-.5
-.7
23.0
7.8

59.0
27.0
32.0
31.7
2.5
29.2
7.0
-1 .9
-.2
13.8
10.5

45.8
25.1
20.7
7.9
2.6
5.3
10.5
- 6 .8
1.0
-3 .6
4.1

48.9
23.7
25.2

36.1
2.3
33.8
7.8
- 1 .2
- .4
18.4
9.2

44.3
24.3
20.1
37.8
1.1
36.7
6.4
- .3
3.1
15.7
11.8

45.8
21.5
24.2

40.0
1.7
38.3
7.5
.9
2.8
14.6
12.5

38.5
21.9
16.6
42.2
2.2
40.0
8.5
2.1
2.5
13.5
13.2

35.3
4.3
31.0
3.5
4.8
-1 .9
14.5
10.2

3.2
10.3
- .8
1.2
.3
- 2 .3
1.0
.5
-1 .4
- .1

2.9
15.7
5.5
2.3
-.8
.1
.9
6.4
-2 .4
-1 .0

5.8
20.5
27.7
1.1
1.3
9.9
.9
17.6
-2 .2
- .9

23.1
18.3
40.0
1.3
6.7
14.3
1.1
18.6
- 1 .0
- 1 .0

24.3
28.1
36.1
1.6
4.5
11.4
1.0
18.9
-.4
- 1 .0

24.4
23.2
23.3
.6
5.6
6.4
.8
8.8
- .9
2.0

21.9
16.6
42.2
1.5
5.8
16.4
1.0
18.9
- 1 .0
- .5

24.3
20.1
37.8
1.1
7.6
12.2
1.1
18.2
- 1 .0
- 1 .5

21.5
24.2
40.5
1.3
6.2
9.9
1.0
23.5
- .6
- 1 .0

27.0
32.0
31.7
1.8
2.9
12.9
.9
14.3
- .1
- .9

25.1
20.7
7.9
.8
4.5
-3 .1
.8
5.5
- 1 .4
.9

23.7
25.2
35.3
.3
6.6
17.0
.7
10.0
-2 .0
2.6

By instrument

38 U.S. government related..............................................
39 Sponsored credit agency securities..........................
40 Mortgage pool securities..........................................
41
Loans from U.S. government..................................
42 Private financial sectors................................................
43
Corporate eq u ities....................................................
44 Debt instruments........................................................
45
Corporate bonds....................................................
46
Mortgages................................................................
47
Bank loans n.e.c.....................................................
48
Open market paper and R P s ..............................
49
Loans from Federal Home Loan Banks............
By sector

50 Sponsored credit agencies............................................
51 Mortgage p ools..............................................................
52 Private financial sectors................................................
53
Commercial b ank s....................................................
54
Bank affiliates............................................................
55
Savings and loan associations..................................
56
Other insurance companies......................................
57
Finance companies....................................................
58
REITs..........................................................................
59
Open-end investment companies............................

All sectors
60 Total funds raised, by instrument............................

223.6

295.9

392.5

481.8

483.4

434.1

465.5

498.1

466.7

498.9

379.5

489.2

61 Investment company sh ares........................................
62 Other corporate equities..............................................
63 Debt instruments............................................................
64
U.S. government securities......................................
65
State and local obligations........................................
66
Corporate and foreign bonds..................................
67
Mortgages....................................................................
68 Consumer credit........................................................
69 Bank loans n.e.c.........................................................
70
Open market paper and R P s ..................................
71
Other lo a n s ................................................................

-.1
10.8
212.9
98.2
16.1
36.4
57.2
9.7
-1 2 .2
-1 .2
8.7

- 1 .0
12.9
284.1
88.1
15.7
37.2
87.0
25.6
7.0
8.1
15.3

- .9
4.9
388.5
84.3
23.7
36.1
133.9
40.6
29.8
15.0
25.2

-1 .0
4.7
478.1
95.2
28.3
31.6
149.1
50.6
58.4
26.4
38.6

- 1 .0
7.6
476.8
89.9
18.9
32.9
158.6
44.2
52.5
40.5
39.5

2.0
15.0
417.1
126.8
22.2
35.6
124.8
3.1
50.7
21.4
32.6

- .5
.1
465.9
100.0
27.8
34.2
141.9
50.1
54.9
22.4
34.6

-1 .5
9.4
490.2
90.4
28.7
29.1
156.3
51.0
61.8
30.4
42.5

-1 .0
5.8
461.9
74.5
16.0
34.1
159.8
48.3
48.6
41.1
39.4

- .9
9.3
490.5
105.2
21.8
31.5
157.4
39.0
56.2
39.8
39.5

.9
9.5
369.1
110.6
18.5
46.1
113.0
-4 .3
15.1
41.9
28.4

2.6
17.0
469.6
142.8
31.6
25.4
138.2
8.9
81.7
.9
40.0




A43

Flow o f Funds
1.59

DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates
1979

1978
Transaction category, or sector

1975

1976

1977

1978

1979

1980

1980
HI

H2

HI

H2

HI

H2

1 Total funds advanced in credit markets to nonfinancial

200.7

261.0

335.3

398.3

390.6

349.8

387.4

409.2

377.7

402.3

318.0

389.7

44.6
22.5
16.2
- 4 .0
9.8

54.3
26.8
12.8
-2 .0
16.6

85.1
40.2
20.4
4.3
20.2

109.7
43.9
26.5
12.5
26.9

80.1
2.0
36.1
9.2
32.8

95.8
22.3
32.0
7.1
34.5

102.8
43.7
22.2
13.2
23.7

116.6
44.0
30.7
11.8
30.1

47.6
-2 2 .1
32.6
7.8
29.2

112.5
26.2
39.6
10.5
36.3

101.5
24.7
33.4
4.1
39.3

90.4
21.3
30.7
10.2
28.3

15.1
14.8
8.5
6.1
13.5

8.9
20.3
9.8
15.2
18.6

11.8
26.8
7.1
39.4
26.3

20.4
44.6
7.0
37.7
41.4

22.5
57.5
7.7
- 7 .7
52.4

26.0
48.6
4.5
16.7
47.5

19.4
39.4
13.4
30.6
38.5

21.4
49.8
.5
44.9
44.3

23.8
49.9
.9
-2 7 .0
45.8

21.3
65.2
14.5
11.7
59.0

29.5
43.6
14.6
13.8
45.8

21.6
52.9
- 5 .6
21.5
48.9

169.7
75.7
16.1
32.8
23.2
17.9
-4 .0

225.4
61.3
15.7
30.5
52.6
63.3
- 2 .0

276.5
44.1
23.7
22.5
83.3
107.3
4.3

330.0
51.3
28.3
22.5
88.2
152.2
12.5

362.9
87.9
18.9
25.6
81.8
157.9
9.2

301.5
104.6
22.2
25.5
58.1
98.2
7.1

323.2
56.3
27.8
24.1
87.1
141.1
13.2

336.9
46.4
28.7
20.9
89.5
163.3
11.8

375.9
96.6
16.0
26.9
85.1
159.1
7.8

348.8
79.1
21.8
24.3
78.5
155.6
10.5

262.4
85.9
18.5
32.6
45.2
84.2
4.1

348.2
121.5
31.6
19.5
71.0
114.7
10.2

19 Credit market funds advanced by private financial
institutions......................................................................
20
Commercial banking..........................................................
21
Savings institutions............................................................
22
Insurance and pension funds............................................
23
Other finance......................................................................

122.5
29.4
53.5
40.6
- 1 .0

190.1
59.6
70.8
49.9
9.8

257.0
87.6
82.0
67.9
19.6

296.9
128.7
75.9
73.5
18.7

292.5
121.1
56.3
70.4
44.7

265.6
103.5
57.6
76.4
28.1

301.7
132.5
75.8
76.9
16.6

292.0
125.0
75.9
70.2
20.9

307.5
124.6
57.7
75.4
49.8

277.4
117.6
54.9
65.5
39.6

230.7
57.0
32.1
86.4
55.2

293.0
142.4
81.1
68.0
1.5

24 Sources of funds....................................................................
25
Private domestic d eposits................................................
26 Credit market borrowing..................................................
27 Other sources......................................................................
28
Foreign funds..................................................................
29
Treasury balances..........................................................
30
Insurance and pension reserves..................................
31
Other, net........................................................................

122.5
92.0
- 1 .4
32.0
-8 .7
- 1 .7
29.7
12.7

190.1
124.6
4.4
61.0
—4.6
- .1
34.5
31.2

257.0
141.2
26.9
89.0
1.2
4.3
49.4
34.1

296.9
142.5
38.3
116.0
6.3
6.8
62.7
40.3

292.5
136.7
33.8
122.0
26.3
.4
49.0
46.3

265.6
163.9
19.8
81.9
-2 0 .0
- 2 .0
58.5
45.4

301.7
138.3
40.0
123.5
5.7
1.9
66.2
49.6

292.0
146.7
36.7
108.6
6.9
11.6
59.2
31.0

307.5
121.7
38.4
147.3
49.4
5.1
53.9
38.9

277.4
151.6
29.2
96.6
3.2
- 4 .3
44.0
53.7

230.7
148.3
5.3
77.2
-1 8 .1
-2 .5
62.4
35.4

293.0
183.0
31.0
79.0
-2 8 .1
- 2 .6
55.6
54.1

32 Direct lending in credit markets..........................................
33 U.S. government securities..............................................
34
State and local obligations................................................
35 Corporate and foreign bonds..........................................
36
Commercial paper..............................................................
37
Other....................................................................................

45.8
24.1
8.4
8.4
-1 .3
6.2

39.7
16.1
3.8
5.8
1.9
12.0

46.3
23.0
2.6
-3 .3
9.5
14.5

71.5
33.2
4.5
-1 .4
16.3
18.8

104.2
57.8
-2 .5
11.1
10.7
27.1

55.7
30.7
- 1 .8
5.4
-2 .4
23.9

61.4
32.1
7.0
-3 .7
8.2
17.8

81.6
34.4
2.0
1.0
24.4
19.8

106.8
64.1
- 2 .3
7.8
12.5
24.7

100.5
51.5
- 2 .7
14.2
9.0
28.5

36.9
15.5
-1 .6
5.2
-5 .7
23.6

86.1
48.8
7.9
5.3
- 2 .9
27.0

38 Deposits and currency..........................................................
39
Security RPs........................................................................
40 Money market fund shares..............................................
41 Time and savings accounts..............................................
42
Large at commercial banks..........................................
43
Other at commercial banks..........................................
44
At savings institutions..................................................
45
Money..................................................................................
46
Demand deposits............................................................
47
Currency..........................................................................

98.1
.2
1.3
84.0
-1 5 .8
40.3
59.4
12.6
6.4
6.2

131.9
2.3
113.5
-1 3 .2
57.6
69.1
16.1
8.8
7.3

149.5
2.2
.2
121.0
23.0
29.0
69.0
26.1
17.8
8.3

151.8
7.5
6.9
115.2
45.9
8.2
61.1
22.2
12.9
9.3

144.7
6.6
34.4
84.7
.4
39.3
45.1
18.9
11.0
7.9

173.5
4.7
29.2
131.8
12.7
62.9
56.2
7.8
-1 .8
9.6

148.7
9.8
6.1
110.7
33.9
18.4
58.5
22.1
11.6
10.5

154.8
5.1
7.7
119.8
57.9
- 1 .9
63.8
22.3
14.2
8.1

131.1
18.5
30.2
71.4
-2 5 .3
41.3
55.4
10.9
1.6
9.3

158.1
-5 .3
38.6
97.9
26.0
37.3
34.7
26.8
20.3
6.5

157.3
5.3
61.9
92.3
-1 2 .0
60.8
43.5
- 2 .2
-1 1 .3
9.0

194.6
7.4
- 3 .4
178.9
72.6
37.7
68.7
11.8
.2
11.6

currency .....................................................................

143.9

171.6

195.8

223.3

248.9

229.1

210.1

236.4

237.9

258.7

194.2

280.8

Public support rate (in percent)......................................
Private financial intermediation (in percent)................
Total foreign funds............................................................

22.2
72.2
- 2 .6

20.8
84.3
10.6

25.4
93.0
40.5

27.5
90.0
44.0

20.5
80.6
18.6

27.4
88.1
-3 .3

26.5
93.4
36.3

28.5
86.7
51.8

12.6
81.8
22.4

28.0
79.5
14.9

31.9
87.9
-4 .3

- 6 .6

sectors .........................................................................
By public agencies and foreign

2 Total net advances................................................................
U.S. government securities..............................................
Residential m ortgages......................................................
5 FHLB advances to savings and lo a n s............................
6 Other loans and securities................................................

3
4

Total advanced, by sector

7
8
9
10
11

U.S. government....................................................................
Sponsored credit agencies....................................................
Monetary authorities............................................................
Foreign....................................................................................
Agency borrowing not included in line 1 ..........................
Private domestic funds advanced

12 Total net advances................................................................
13 U.S. government securities.................................. ............
14 State and local obligations................................................
15 Corporate and foreign bonds..........................................
16 Residential mortgages......................................................
17 Other mortgages and loans..............................................
18 Less: Federal Home Loan Bank advances....................
Private financial intermediation

Private dom estic nonfinancial investors

48 Total of credit market instruments, deposits and
49
50
51

Memo: Corporate equities not included above
52 Total net issues..................................................................
53 Mutual fund shares............................................................
54 Other equities....................................................................

10.7

11.9

4.0

3.7

6.6

17.0

- .4

7.9

4.8

8.4

10.4

19.6

- .1

- 1 .0
12.9

- .9
4.9

- 1 .0
4.7

- 1 .0
7.6

-2 .0
15.0

- .5
.1

- 1 .5
9.4

- 1 .0
5.8

- .9
9.3

.9
9.5

2.6
17.0

12.3
- .4

7.4
-3 .4

7.6
- 3 .8

15.7
-9 .1

18.7
- 1 .7

.4
- .8

14.7
- 6 .8

12.5
- 7 .7

18.9
-1 0 .5

10.5
- .1

25.1
- 5 .5

10.8

55 Acquisitions by financial institutions..................................

9.6

56 Other net purchases..............................................................

1.1

N otes by line num ber .

1.
2.
6.
11.
12.
17.
25.
26.
28.
29.

Line 2 of p. A42.
Sum of lines 3-6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities. Included below in lines 3,
13, and 33.
Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. Also sum
of lines 27, 32, 39, 40, 41, and 46.
Includes farm and commercial mortgages.
Sum of lines 39, 40, 41, and 46.
Excludes equity issues and investment company shares. Includes line 18.
Foreign deposits at commercial banks, bank borrowings from foreign branches,
and liabilities of foreign banking agencies to foreign affiliates.
Demand deposits at commercial banks.




23.2
84.2

30. Excludes net investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 12 less line 19 plus line 26.
33-37. Lines 13-17 less amounts acquired by private finance. Line 37 includes
mortgages.
47. Mainly an offset to line 9.
48. Lines 32 plus 38, or line 12 less line 27 plus 45.
49. Line 2/line 1.
50. Line 19/line 12.
51. Sum of lines 10 and 28.
52. 54. Includes issues by financial institutions.
N o te . Full statements for sectors and transaction types quarterly, and annually
for flows and for amounts outstanding, may be obtained from Flow of Funds
Section, Division of Research and Statistics, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.

A44
2.10

Domestic Nonfinancial Statistics □ July 1981
NONFINANCIAL BUSINESS ACTIVITY

Selected Measures

1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1980
Measure

1979

1978

1981

1980
Nov.

Oct.

Dec.

Jan.

Feb.

151.0

151.7

152.2

152.2

152.2

152.8

152.7

Mar.'

Apr.'

May

June

146.1

152.5

147.1

144.8
135.9
149.1
132.8
154.1
148.3

150.0
147.2
150.8
142.2
160.5
156.4

146.8
145.4
145.5
145.1
151.9
147.7

147.2
145.8
146.6
144.8
152.4
146.4

148.7
147.5
148.0
146.7
153.5
150.5

149.9
148.3
147.7
149.1
156.1
152.6

150.3
148.3
147.2
149.8
157.7
153.8

149.8
147.9
146.9
149.1
156.9
154.2

150.7
149.2
148.2
150.7
156.3
154.4

151.5
150.3
149.2
151.7
155.9
153.2

151.9
150.9
149.8
152.5
155.3
154.3

151.4
150.7
149.4
152.4
154.3
154.7

8 Manufacturing........................................................

146.8

153.6

146.6

146.4

149.1

150.6

151.1

151.0

151.7

152.3

152.9

152.2

Capacity utilization (percent)1,2
9 Manufacturing....................................................
10 Industrial materials industries..........................

84.4
85.6

85.7
87.4

79.0
79.8

78.2
78.4

79.4
80.4

79.9
81.3

79.8
81.7

79.9
81.7

80.0
80.9

80.1
81.3

79.6
81.3

11 Construction contracts (1972 = 100)3................

174.1

185.6

161.8

167.0

210.0

193.0

185.0

177.0

183.0

172.0

160.0

12 Nonagricultural employment, total4 ..................
13
Goods-producing, to ta l....................................
14
Manufacturing, total......................................
15
Manufacturing, production-worker............
16 Service-producing..............................................
17 Personal income, total..........................................
18 Wages and salary disbursements....................
19
Manufacturing................................................
20 Disposable personal income5 ..............................

131.8
109.8
105.4
103.0
143.8
273.3
258.8
223.1
267.0

136.5r
113.5r
108.2'
105.3'
149.1'
308.5
289.5
248.6
299.6

137.6'
110.3'
104.4'
99.4'
152.6'
342.9
314.7
261.5
332.5

137.8'
109.5'
103.4'
98.0'
153.3'
354.7
323.6
267.6
339.3

138.1'
110.0'
103.8'
98.4'
153.5'
358.3
328.0
273.1
343.2

138.2'
110.0'
103.7'
98.3'
153.7'
361.4
330.5
275.8
346.4

138.4'
110.0'
103.7'
98.2'
154.0'
365.2
335.6
280.1
349.2

138.7'
110.1'
103.8'
98.2'
154.4'
368.0'
337.9
281.3
352.5

138.8
110.3
103.8
98.4
154.5
371.5
340.2
382.9
355.3

139.0
110.3
104.6
99.2
154.7
373.6
341.4
285.8
358.7

139.1
110.2
105.0
99.6
154.9
275.7
242.9
288.4
360.5

139.1
110.6
104.9
99.7
154.8
n.a.
n.a.
n.a.
362.4

21 Retail sales6 ............................................................

253.8

281.6

300.0

308.0

313.8

315.8

326.6

331.7

3.348

3.281

3.260

3.300

Prices7
22
Consumer............................................ ................
23
Producer finished goods.................... ................

195.4
194.6

217.4
216.1

246.8
246.9

253.9
255.4

256.2
256.2

258.4
257.2

260.5
260.4

263.2
262.4

265.1
265.3

226.8
267.7

269.0
268.9

n.a.
269.9

1 Industrial production1 .......................................

146.9

149.4

M arket groupings

2 Products, total........................................................
3 Final, to ta l..........................................................
4
Consumer goods............................................
5
Equipment......................................................
6
Intermediate........................................................
7 Materials..................................................................
Industry groupings

1. The industrial production and capacity utilization series have been revised
back to January 1979.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, and Department of Com­
merce.
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 Em ploym ent and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
5. Based on data in Survey o f Current Business (U.S. Department of Commerce).

2.11

80.0
81.7

6. Based on Bureau of Census data published in Survey o f Current Business.
7. Data without seasonal adjustment, as published in M onthly L abor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
N o te . 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 o f Current Business.

Figures for industrial production for the last two months are preliminary and
estimated, respectively.

OUTPUT, CAPACITY, AND CAPACITY UTILIZATION
Seasonally adjusted
1980

1981

1980

1981

1980

1981

Series
Q3

04

Ql

Q2

Output (1967 = 100)

Q3

Q4

Ql

Q2

Capacity (percent of 1967 output)

Q3

Q4

Q2

01

Utilization rate (percent)

1 Manufacturing.....................................................
2 Primary processing................................................
3 Advanced processing............................................

141.0

148.7

151.3

152.5

186.3

187.8

189.3

190.8

75.7

79.2

79.9

79.9

139.6
141.8

153.1
146.4

157.3
148.2

157.2
149.7

191.5
183.5

193.0
185.0

194.3
186.6

195.4
188.3

72.9
77.3

79.4
79.1

81.0
79.4

80.5
79.5

4 Materials..............................................................

139.2

149.8

154.1

154.1

185.8

187.2

188.7

189.8

74.9

80.0

81.7

81.1

5 Durable goods........................................................
6
Metal materials..................................................
7 Nondurable goods..................................................
8 Textile, paper, and chemical............................
9
Textile..............................................................
10
Paper................................................................
11
Chemical..........................................................
12 Energy materials....................................................

131.5
86.6
161.9
165.6
113.4
142.9
197.9
129.6

145.1
109.9
175.5
182.7
113.2
148.9
226.9
129.5

151.1
117.2
179.1
186.8
111.0
151.2
234.6
130.8

152.9
n.a.
179.7
188.6
n.a.
n.a.
n.a.
125.0

190.0
140.9
204.3
213.7
139.6
157.4
268.7
152.6

191.5
141.0
206.5
216.2
140.0
158.8
272.9
153.1

192.8
141.1
208.5
218.5
140.3
160.0
276.4
154.1

194.0
n.a.
210.1
220.4
n.a.
n.a.
n.a.
155.0

69.2
61.5
79.2
77.5
81.2
90.7
73.6
85.0

75.8
78.0
85.0
84.5
80.9
93.8
83.2
84.6

78.4
83.1
85.9
85.5
79.1
94.5
84.9
84.9

78.8
n.a.
85.5
85.6
n.a.
n.a.
n.a.
80.7




Labor Market
2.11

A45

Continued
Previous cycle1

Latest cycle2

1980

Low

1980

June

1981

Series
High

Low

High

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

Capacity utilization rate (percent)
13 Manufacturing......................................

88.0

69.0

87.2

74.9

75.7

79.4

79.9

80.0

79.8

79.9

80.0

80.1

79.6

Primary processing..........................
Advanced processing........................

93.8
85.5

68.2
69.4

90.1
86.2

70.9
77.1

72.7
77.4

79.6
79.2

80.8
79.6

81.2
79.5

81.2
79.1

80.5
79.6

80.6
79.7

80.5
79.9

80.2
79.3

16 Materials................................................
17 Durable g ood s..................................
Metal materials............................
18

92.6
91.5
98.3

69.4
63.6
68.6

88.8
88.4
96.0

73.7
68.0
58.4

75.7
70.8
67.0

80.4
76.5
81.4

81.3
77.3
81.0

81.7
78.0
82.0

81.7
78.2
83.2

81.7
78.9
84.1

80.9
78.7
81.1

81.0
78.8
81.0

81.3
78.6
n.a.

19
20
21
22
23

Nondurable good s............................
Textile, paper, and chemical. . . .
Textile........................................
Paper ..........................................
Chemical....................................

94.5
95.1
92.6
99.4
95.5

67.2
65.3
57.9
72.4
64.2

90.9
91.4
90.1
97.6
91.2

76.8
74.5
79.5
88.1
69.6

78.7
77.1
81.8
91.6
72.7

84.3
83.7
80.7
94.1
82.0

86.3
85.9
79.8
94.2
85.4

86.7
86.2
79.8
93.7
85.9

86.1
85.8
79.2
94.8
85.2

84.9
84.5
78.2
94.9
83.6

85.4
85.1
79.1
93.8
84.4

85.7
85.4
79.7
93.5
84.9

85.3
85.5
n.a.
n.a.
n.a.

24

Energy materials..............................

94.6

84.8

88.3

83.1

85.8

85.5

85.0

84.6

85.2

84.8

80.3

79.7

82.7

14
15

1. Monthly high 1973; monthly low 1975.
2. Preliminary; monthly highs December 1978 through January 1980; monthly
lows July 1980 through October 1980.

2.12

LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1980
Category

1978

1979

1981

1980
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

H ousehold S urvey D ata

1 Noninstitutional population1 ........................

161,058

163,620

166,246

167,396

167,585

167,747

167,902

168,071

168,272

168,480

2 Labor force (including Arm ed Forces)1 . . .

102,537
100,420

104,996
102,908

106,821
104,719

107,191
105,067

107,668
105,543

107,802
105,681

108,305
106,177

108,851
106,722

109,533
107,406

108,307
106,176

91,031
3,342

93,648
3,297

93,960
3,310

93,888
3,394

94,294
3,403

94,646
3,281

95,136
3,276

95,513
3,463

95,882
3,353

95,127
3,265

6,047
6.0
58,521

5,963
5.8
58,623

7,448
7.1
59,425

7,785
7.4
60,205

7,847
7.4
59,917

7,754
7.3
59,946

7,764
7.3
59,598

7,746
7.3
59,219

8,171
7.6
58,739

7,784
7.3
60,173

86,697

89,823 r

90,564r

90,949r

91,091r

91,258r

91,347r

91,458r

91,530 r

91,516

20,505
851
4,229
4,923
19,542
4,724
16,252
15,672

21,040'
958'
4,463'
5,136'
20,192'
4,975'
17,112'
15,947'

20,300'
1,020'
4,399'
5,143'
20,386'
5,168'
17,901'
16,249'

20,175'
1,069'
4,387'
5,118'
20,470'
5,254'
18,240'
16,236'

20,174'
1,083'
4,390'
5,124'
20,529'
5,268'
18,300'
16,223'

20,177'
1,091'
4,389'
5,135'
20,600'
5,283'
18,343'
16,240'

20,171'
1,098'
4,416'
5,139'
20,635'
5,293'
18,371'
16,204'

20,332'
950'
4,418'
5,161'
20,636'
5,316'
18,475'
16,170'

20,413'
955'
4,322'
5,141'
20,714'
5,322'
18,536'
16,127'

20,405
1,106
4.263
5.167
20,681
5,329
18,548
16,017

3
4
5

6
7
8

Civilian labor fo rc e ........................................
E m ploym ent
Nonagricultural industries2 ....................
Agriculture...................................................
Unem ploym ent
Num ber ....................................................
Rate (percent of civilian labor force) .
Not in labor fo rc e ..........................................
E stablishment S urvey D ata

9 Nonagricultural payroll employment3 .......
10
11
12
13
14
15
16
17

M anufacturing ................................................
M ining ..............................................................
Contract construction ....................................
Transportation and public u tilities ..............
Trade ................................................................
Finance ............................................................
Service ..............................................................
Governm ent ....................................................

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 Em ploym ent and Earnings (U.S. Department of La­
bor).
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 work­
ers, and members of the Armed Forces. Data are adjusted to the March 1979
benchmark and only seasonally adjusted data are available at this time. Based on
data from Em ploym ent and Earnings (U.S. Department of Labor).

A46
2.13

Domestic Nonfinancial Statistics □ July 1981
INDUSTRIAL PRODUCTION

Indexes and Gross Value*

Monthly data are seasonally adjusted.

Grouping

1967
pro­
por­
tion

1980
aver­
age

1980
June

July

Aug.

Sept.

1981
Oct.

Nov.

Dec.

Jan.

Feb.

Mar. r

Apr.

MayP

June*

Index (1967 = 100)
M ajor M arket

1 Total index....................................

100.00

2 Products............................................
3
Final products..............................
4
Consumer g o o d s ....................
5
Equipm ent..............................
6
Intermediate products................
7 Materials..........................................

60.71
47.82
27.68
20.14
12.89
39.29

8 Durable consumer good s..............
9
Automotive products................
10
Autos and utility vehicles.. . .
11
A utos....................................
12
Auto parts and allied goods..
13
Home goods................................
14
Appliances, A/C, and TV . . .
15
Appliances and T V ............
16
Carpeting and furniture........
17
Miscellaneous home goods...
18 Nondurable consumer goods........

147.1

141.5

140.4

141.8

146.8
145.4
145.5
145.1
151.9
147.7

142.5
142.3
142.1
142.6
146.2
140.0

142.8
142.4
142.0
142.9
144.5
136.5

143.8
142.8
142.7
142.9
147.6
138.6

7.89
2.83
2.03
1.90
80
5.06
1.40
1.33
1.07
2.59

136.5
132.7
109.9
103.4
190.4
138.7
117.1
119.5
155.0
143.6

128.2
121.6
97.1
95.7
184.0
134.6
105.6
108.5
146.7
140.2

128.3
129.2
106.4
105.2
183.7
132.0
102.3
103.4
136.1
138.1

19.79
4.29
15.50
8.33
7.17

149.1
126.8
155.3
147.0
165.0

147.6
126.7
153.4
146.2
161.7

2.63
1.92
2.62
1.45

208.7
122.9
151.9
171.2

12.63
6.77
1.44
3.85
1.47

Commercial transit, farm..........
Commercial..............................
Transit......................................
Farm..........................................

36 Defense and space..........................

144.1

146.9

149.4

151.0

151.7

151.5

152.2

152.2

152.8

152.7

145.3
143.9
144.3
143.2
150.6
142.4

147.2
145.8
146.6
144.8
152.4
146.4

148.7
147.5
148.0
146.7
153.5
150.5

149.9
148.3
147.7
149.1
156.1
152.6

150.3
148.3
147.2
149.8
157.7
153.8

149.8
147.9
146.9
149.1
156.9
154.2

150.7
149.2
148.2
150.7
156.3
154.4

151.5
150.3
149.2
151.7
155.9
153.2

151.9
150.9
149.8
152.5
155.3
154.3

151.4
150.7
149.4
152.4
154.3
154.7

128.6
121.5
94.1
91.3
186.9
127.7
114.2
114.2
141.1
139.1

132.7
130.6
105.5
98.0
191.1
132.6
116.3
117.6
146.1
138.6

139.6
141.8
120.2
110.7
194.2
134.0
123.5
125.6
150.2
141.5

142.9
145.3
124.3
114.3
196.8
138.3
128.4
131.0
154.9
143.0

141.3
139.1
115.9
105.3
198.6
141.5
126.8
129.2
156.3
145.4

138.8
127.1
99.8
90.0
198.0
142.6
131.2
132.7
156.8
148.4

138.9
129.0
103.7
96.0
196.6
145.4
124.2
126.7
159.9
149.0

143.3
139.4
116.7
108.3
196.9
145.5
127.7
129.7
159.3
149.4

144.0
143.6
120.1
113.2
203.2
144.3
120.8
122.3
164.1
148.9

146.5
151.3
129.9
120.8
205.9
143.8
119.0
120.1
165.1
148.4

145.8
152.4
131.6
122.2
205.2
142.1
117.0

147.4
122.5
154.3
146.4
163.6

148.3
123.6
155.1
146.0
165.7

148.9
122.1
156.3
147.0
167.1

149.4
125.1
156.1
147.7
165.9

150.1
127.3
156.4
148.0
166.2

150.2
123.7
157.5
148.9
167.6

150.5
122.3
158.3
148.7
169.5

150.1
119.9
158.5
149.3
169.1

150.1
120.0
158.5
149.6
168.8

151.3
120.3
159.9
151.0
170.2

151.1

150.8

159.4
149.9
170.5

159.3

202.6
120.6
150.9
170.1

204.3
121.5
153.5
176.5

209.3
122.0
153.9
178.6

213.0
122.3
154.0
178.3

210.2
124.8
151.5
175.0

210.0
127.3
150.8
171.8

212.5
127.0
152.3
171.2

214.7
127.6
154.8
174.4

217.6
129.5
149.4
167.0

220.0
129.1
146.5
166.5

222.9
127.4
148.8
170.3

223.6
126.7
149.3

173.3
157.0
241.3
128.5
149.0

169.8
155.2
241.0
126.1
147.1

170.1
154.8
244.4
126.0
142.0

170.3
154.5
243.6
124.4
145.9

170.5
154.2
243.4
123.9
146.1

172.3
154.4
244.3
123.9
146.1

174.5
157.1
250.1
126.4
146.0

177.8
160.7
255.7
130.6
146.1

178.9
163.8
265.9
131.1
149.1

178.3
165.2
272.2
131.0
149.9

180.5
167.3
279.6
132.0
149.3

182.1
168.6
285.4
131.9
149.9

183.2
170.0
289.2
133.1
149.7

183.0
170.1
289.4
133.3
149.4

5.86
3.26
1.93
67

192.1
237.5
139.4
123.2

186.7
228.8
138.0
121.6

187.8
229.0
140.9
122.5

188.4
233.6
138.4
112.7

189.4
237.2
133.8
116.8

192.8
242.0
135.0
120.2

194.7
244.0
136.6
121.9

197.6
248.3
137.9
123.1

196.3
249.6
131.7
122.9

193.4
250.9
122.9
116.4

195.9
253.4
126.6
115.3

197.6
254.4
129.4
117.9

198.5
256.0
130.6
114.5

197.9
255.7
129.8

7.51

97.8

96.8

97.2

96.9

97.4

98.5

99.8

100.7

101.0

100.2

100.5

100.8

100.9

100.9

6.42
6.47
1.14

140.7
162.9
173.6

128.5
158.4
168.7

128.6
160.4
172.1

133.1
161.9
173.7

137.4
163.6
175.2

140.5
164.3
174.6

142.8
164.2
174.0

144.6
167.5
179.4

147.4
168.0
178.3

147.3
166.5
175.0

147.6
164.8
174.4

146.9
164.8
174.1

146.4
164.2
174.2

144.4

40 Durable goods materials................
41
Durable consumer parts............
42
Equipment p arts........................
43
Durable materials n.e.c..............
44
Basic metal materials............

20.35
4.58
5.44
10.34
5.57

143.1
109.0
187.3
135.0
104.6

133.8
96.0
182.5
125.0
95.9

129.0
93.9
177.6
118.9
84.7

131.3
98.1
176.3
122.4
89.4

134.2
104.2
176.0
125.4
91.7

140.4
110.8
178.5
133.4
102.0

146.6
115.5
184.0
140.6
114.4

148.4
116.3
185.8
142.9
115.0

150.2
116.2
189.2
144.6
116.3

150.7
115.9
188.9
146.0
118.1

152.4
119.9
191.5
146.2
118.1

152.4
121.9
192.1
144.9
114.7

153.7
123.0
194.6
145.8
115.3

152.7
123.3
194.1
143.9

45 Nondurable goods materials........
46
Textile, paper, and chemical
materials..................................
47
Textile m aterials....................
48
Paper m aterials......................
49
Chemical materials................
50
Containers, nondurable............
51
Nondurable materials n.e.c. . . .

10.47

170.7

159.6

156.2

159.8

169.7

173.7

174.1

178.8

180.2

179.6

177.7

179.1

180.3

179.8

7.62
1.85
1.62
4.15
1.70
1.14

177.0
116.0
145.1
216.7
165.1
137.3

163.4
114.0
143.4
193.3
157.7
136.8

158.5
114.4
138.4
186.1
159.0
136.6

163.2
111.0
142.0
194.9
158.8
137.9

175.1
114.7
148.2
212.6
167.2
137.2

180.5
114.9
147.3
222.9
168.6
135.7

181.0
113.0
149.5
223.8
166.6
139.1

186.5
111.8
150.0
234.1
169.7
141.1

187.7
111.9
149.6
236.4
172.1
142.0

187.4
111.1
151.7
235.5
171.0
140.4

185.4
109.9
152.2
232.1
168.8
139.4

187.2
112.3
150.9
235.0
170.1
138.3

189.6
113.1
151.3
238.7
167.6
137.1

189.0

52 Energy materials............................
53
Primary energy............................
54
Converted fuel materials..........

8.48
4.65
3.82

130.0
115.1
148.2

130.4
117.3
146.4

130.4
115.6
148.4

130.0
114.0
149.4

128.4
114.3
145.4

127.2
113.7
143.6

130.9
114.5
150.9

130.5
115.0
149.4

130.2
114.4
149.4

131.3
117.5
148.0

130.7
116.2
148.3

123.3
103.9
146.8

123.4
104.0
146.9

128.4

9.35
12.23
3.76
8.48

133.2
138.8
158.5
130.0

129.5
138.4
156.3
130.4

125.3
139.2
159.1
130.4

128.5
139.2
159.9
130.0

128.5
138.2
160.5
128.4

132.2
136.8
158.5
127.2

135.0
139.2
157.9
130.9

133.9
139.7
160.5
130.5

134.8
139.9
161.9
130.2

133.2
139.2
157.1
131.3

133.8
138.1
155.0
130.7

133.3
133.5
156.5
123.3

133.4
133.7
156.8
123.4

132.1
137.8

Consumer goods

20
21
22
23
24
25
26

Consumer staples........................
Consumer foods and tobacco
Nonfood staples......................
Consumer chemical
products........................
Consumer paper products .
Consumer energy products
Residential utilities........

146.6

171.2

Equipm ent

27 Business............................................
28
Industrial......................................
29
Building and m ining..............
30
Manufacturing........................
31
Power........................................
32
33
34
35

Intermediate products

37 Construction supplies....................
38 Business supplies............................
39 Commercial energy products. . .
Materials

Supplementary groups

55 Home goods and clothing............
56 Energy, total....................................
57
Products........................................
58
Materials......................................




128.4

Output
2.13

A47

Continued
Grouping

SIC
code

1967
pro-

1980

1980
avg.

tion

June

July

Aug.

Sept.

1981
Oct.

Nov.

Dec.

Jan.

Feb.

Mar. r

Apr.

MayP

June*

Index (1967 = 100)
=
Major Industry
12.05
6.36
5.69
3.88
87.95
35.97
51.98

150.4
132.9
169.9
189.7
146.6
161.1
136.6

150.1
132.9
169.3
188.7
140.3
155.3
129.9

150.1
130.6
171.8
192.4
139.1
154.7
128.3

150.5
129.6
173.8
195.4
140.6
156.9
129.4

150.5
130.5
172.7
193.9
143.4
160.3
131.7

150.2
132.1
170.4
190.3
146.4
161.8
135.8

152.8
136.0
171.5
191.5
149.1
163.3
139.3

154.0
139.3
170.3
190.3
150.6
165.0
140.6

155.2
141.1
171.0
191.1
151.1
165.2
141.4

155.2
143.3
168.5
187.4
151.0
166.1
140.7

155.8
143.5
169.4
188.7
151.7
165.5
142.2

151.7
135.8
169.4
188.5
152.3
166.2
142.6

152.2
135.9
170.5
190.0
152.9
166.4
143.6

156.1
141.3
172.5
192.9
152.2
165.9
142.7

10
11.12
13
14

.51
.69
4.40
.75

109.1
146.7
133.8
131.7

120.0
150.0
133.2
123.9

83.1
149.8
134.3
123.7

71.2
154.9
133.6
123.5

73.1
148.9
134.7
128.2

90.8
145.7
135.4
129.0

107.2
151.6
137.4
133.0

122.2
155.3
139.1
137.8

126.3
150.3
141.5
140.0

133.7
158.9
142.7
138.9

131.1
151.1
144.8
137.4

123.6
75.8
146.8
134.8

121.6
76.9
147.2
133.1

124.1
148.3

8.75
.67
2.68
3.31
3.21

149.2
119.8
136.8
128.6
151.0

149.0
113.9
133.6
127.2
146.2

148.9
119.6
132.5
121.5
143.6

148.3
117.4
132.6
123.8
147.1

148.6
119.1
133.0
126.7
152.3

149.4
123.1
133.8
127.5
153.0

150.5
125.1
135.0
128.0
154.4

150.7
118.8
133.9
125.1
156.8

150.0
122.9
133.8
125.9
157.2

151.5
123.1
135.5
124.0
156.7

152.1
115.8
134.0
123.6
156.9

153.0
120.7
135.9
124.0
156.7

152.5

15 Apparel products....................
16 Paper and products..................

20
21
22
23
26

155.6

153.6

17
18
19
20
21

27
28
29
30
31

4.72
7.74
1.79
2.24
.86

139.6
206.7
134.9
255.8
70.1

135.4
191.1
133.0
242.9
68.5

138.6
190.3
130.5
242.5
67.8

140.3
197.8
126.7
245.9
67.7

140.3
206.8
130.5
253.1
67.2

141.5
209.1
130.1
259.2
70.2

142.7
212.0
131.2
259.6
71.2

144.9
218.8
137.5
259.2
67.8

145.5
219.2
137.3
258.2
68.9

145.8
220.9
134.3
264.0
69.4

143.6
219.5
131.4
267.9
69.1

141.4
220.7
130.4
273.8
68.8

140.4
222.4
128.9
276.0
70.0

128.8

22 Ordnance, private and
governm ent......................
23 Lumber and products..............
24 Furniture and fixtures............
25 Clay, glass, stone products . . .

19.91
24
25
32

3.64
1.64
1.37
2.74

77.9
119.3
150.0
146.5

77.5
109.7
143.1
134.5

77.1
112.8
138.6
134.2

77.2
121.7
141.1
135.7

77.1
122.6
144.8
141.4

79.1
122.2
147.2
145.2

79.6
124.9
147.2
147.8

79.5
122.0
149.0
151.4

78.9
126.3
150.5
154.9

78.6
126.3
153.0
154.8

78.3
125.4
153.0
152.4

78.4
126.2
157.1
152.4

78.9
126.2
158.9
151.6

79.2

26
27
28
29
30

Primary metals..........................
Iron and steel........................
Fabricated metal products----Nonelectrical m achinery........
Electrical machinery................

33
331.2
34
35
36

6.57
4.21
5.93
9.15
8.05

101.6
91.7
135.0
162.8
172.7

90.4
75.4
126.1
158.3
166.6

81.7
68.1
123.8
158.5
165.0

86.0
75.3
125.8
158.8
166.7

90.1
79.8
129.0
159.1
167.5

100.6
93.3
132.8
161.1
170.0

113.4
107.4
134.1
163.4
173.0

112.1
103.5
137.4
167.5
174.9

113.9
108.0
137.6
168.9
177.9

114.2
107.8
139.1
169.1
174.6

114.3
107.3
141.3
170.7
177.1

112.1
105.5
141.0
171.5
178.4

112.2
105.9
141.0
173.2
179.2

109.8
140.4
173.5
177.4

31 Transportation equipment.. . .
32
Motor vehicles and parts. . .
33
Aerospace and miscella­
neous transportation
equipment......................
34 Instruments..............................
35 Miscellaneous manufactures ..

37
371

9.27
4.50

116.8
118.8

110.0
106.7

110.7
107.9

108.3
104.4

112.9
113.4

118.8
124.2

121.7
129.0

120.6
126.3

117.3
119.2

114.9
117.5

119.4
127.4

120.2
129.7

123.3
136.1

123.2
136.5

372-9
38
39

4.77
2.11
1.51

114.9
171.0
147.8

113.1
169.2
43.7

113.4
167.5
144.7

111.9
167.6
144.2

112.3
167.4
142.8

113.6
169.6
145.0

114.8
169.9
147.5

115.2
172.1
149.5

115.5
174.0
151.8

112.5
171.3
153.6

111.9
169.9
154.9

111.2
170.0
156.0

111.2
170.6
153.5

110.5
169.5
152.5

Mining

9 Coal............................................
10 Oil and gas extraction............
Nondurable manufactures

13 Tobacco products....................

Printing and publishing..........
Chemicals and products..........
Petroleum products..................
Rubber and plastic products..
Leather and products..............

135.7

139.3

Durable manufactures

Gross value (billions of 1972 dollars, annual rates)
Major Market
36 Products, total........................

507.4

602.1

585.0

586.7

585.9

593.3

604.7

610.9

615.5

614.0

612.0

617.8

617.4 620.1

618.4

37 F in a l..........................................

390.9
277.5
113.4
116.6

465.4
313.5
151.9
136.7

455.6
305.8
149.8
129.4

456.9
307.7
149.2
129.9

453.0
305.1
147.9
132.9

458.0
309.0
149.0
135.3

467.7
316.6
151.1
137.1

473.0
320.0
153.0
137.9

475.5
320.3
155.2
140.0

472.6
317.2
155.4
141.5

470.4
316.5
154.0
141.5

476.7
320.4
156.3
141.2

477.8
321.4
156.4
139.6

480.3
322.7
157 6
138.1

38
Consumer good s..................
39
Equipment............................
40 Intermediate.......................... ...

N o t e . Published groupings include some series and subtotals not shown sepa­
rately. For description and historical data, see Industrial Production—1976 Revision
(Board of Governors of the Federal Reserve System: Washington, D.C.), Decem­
ber 1977.




480.9
323.2
157.7
139.1

A48
2.14

Domestic Nonfinancial Statistics □ July 1981
HOUSING AND CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1981
Item
Oct.

Nov.

Dec.

Jan.

Feb.

Apr.

May

Private residential real estate activity (thousands of units)
N ew U nits

1 Permits authorized..............................
2
1-family..............................................
3
2-or-more-family..............................

1,801
1,183
618

1,552
981
571'

1,191'
710'
481'

1,351'
820'
531'

1,366'
809'
557'

1,249'
753'
496'

1,214'
715'
499'

1,165
677
488

1,153
678
475

1,186'
689'
497'

1,182'
655'
528'

4 Started....................................................
5
1-family..............................................
6
2-or-more-family..............................

2,020
1,433
587

1,745
1,194
551

1,292
852
440

1,519
1,009
510

1,550
1,019
531

1,535
974
561

1,660
993
667

1,215
791
424

1,297'
838'
459'

1,340'
900'
440'

1,152'
753'
399'

7 Under construction, end of period1. .

1,310
765
546

1,140
639
501

896'
515
382'

886

905
529
376

1,868
1,369
498'

1,855
1,286
569'

1.502'
957'
545

1,287
823
464

8

9

1-family...................................................
2-or-m ore-fam ily.................................

10 Com pleted............................................
11

1-fam ily...................................................

12

2-or-more-family..............................

1.274
819
455

915
535
381'
1,373
895
478

13 Mobile homes shipped........................

940'
544
397'

938'
541'
397'

924'
533'
390'

916'
531'
386'

1,252'
903'
349'

1,389'
965'
424'

1,354'
872'
482'

1,449'
932'
567'

233

514
373'

256

255

265

523'
329'

500'
334'

507'
325'

436'
329

504
326

Merchant builder activity in 1-family
units

14 Number s o ld ........................................
15 Number for sale, end of period1 . . . .

549
334

560
337

514
336

64.9

66.1

67.1

67.2

67.9

65.8'

67.1'

69.0'

72.6

76.6

77.7

82.2

81.5

80.2'

80.1'

81.0'

83.4'

83.9

3,701

2,881

3,120

2.960

2,910

2,580

2,560

2,490

2,610'

55.5
64.0

62.1
72.7

62.7
73.4

64.3
74.9

63.0
74.0

64.5
76.1

64.1
75.7

64.4
76.2

65.3'
77.3

818
419

709
402

55.8

62.7

62.7

71.9

3,863
48.7
55.1

530
340'

Price (thousands o f dollars)2

Median
Units sold..........................................
Average
17 Units sold..........................................

16

E xisting U nits (1-family)

18 Number s o ld ........................................
Price o f units sold (thous. o f dollars)2

19 M edian..................................................
20 A verage................................................

66.4
78.6

Value of new construction3 (millions of dollars)'
C onstruction

21 Total put in p la c e .............................

205,559

230,781

230,273

228,932

234,275

245,433

259,049

254,458

250,274

248,948

237,322

22 Private..............................................
23
Residential..................................
24
Nonresidential, total..................
Buildings
25
Industrial............................
26
Commercial........................
27
Other....................................
28
Public utilities and other

159,664
93.423
66,241

181,690
99,032
82,658

174,896
87.260
87.636

174,913
89,826
85,087

180.882
95.617
85,265

187,875
98,898
88,977

193,877
100,686
93,191

193,155
99,684
93,471

189,641
96,266
93,375

192,509
98,330
94,179

186,500
94,115
92,385

10,993
18,561
6,739
29,948

14,953
24,919
7,427
35,359

13,839
29,940
8.654
35,203

12,449
29,086
8,786
34,766

12,916
29,572
8.961
33,816

14,293
30,763
9,268
34,653

15,339
32,955
9,891
35,006

15,094
33,379
9,938
35,060

15,380
33,307
9,588
35,100

15,504
33,395
9,196
36,084

14,876
31,544
8,947
37,018

29 P ublic..............................................
30
Military........................................
31
Highway......................................
32
Conservation and development
33
Other............................................

45,896
1,501
10,708
4,457
29,230

49,090
1,648
11,998
4,586
30,858

55,375
1.880
13,784
5,089
34,622

54,018
2,025
12,963
4,885
34,145

53,393
1.770
12.786
5.177
33.660

57.558
1.743
13,127
5,383
37,305

65,173
1,810
19,882
6,242
37,239

61,302
2,173
17,812
6,197
35,120

60,633
1,685
15,515
6,018
37,415

56,439
1,915
14,144
5,688
34,692

50,822
1,749
n.a.
n.a.
n.a.

1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly comparable
with data in prior periods due to changes by the Bureau of the Census in its
estimating techniques. For a description of these changes see Construction Reports
(C-30-76-5), issued by the Bureau in July 1976.




N o te . Census Bureau estimates for all series except (a) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing Institute
and seasonally adjusted by the Census Bureau, and (b) sales and prices of existing
units, which are published by the National Association of Realtors. All back and
current figures are available from originating agency. Permit authorizations are
those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978.

Prices
2.15

A49

CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
12 months to

3 months (at annual rate) to
1980

Item
1980
May

1 month to

1981

Index
level
May
1981
(1967
=100)1

1981

1981
May
June

Sept.

Dec.

Mar.

Jan.

Feb.

Mar.

Apr.

May

C onsumer P rices2

1 All ite m s .................................................................

14.4

9.8

11.4

7.8

13.2

9.6

.7

1.0

.6

.4

.7

269.0

2 Commodities..................................................
3 Food ............................................................
4 Commodities less food..............................
5
Durable....................................................
6
Nondurable............................................
7 Services............................................................
8 Rent..............................................................
9 Services less rent........................................

12.4
6.9
14.9
9.5
21.9
17.3
8.7
18.6

8.9
8.8
8.8
8.1
9.6
11.3
9.0
11.6

5.4
5.8
5.2
7.5
3.8
20.5
10.0
22.1

13.2
19.7
10.6
15.2
5.0
.7
8.6
-.3

11.0
13.1
9.9
11.8
6.2
16.8
9.6
17.8

8.9'
2.1
12.3
- .7
29.8
10.3
7.0
10.9

.6
- .1
1.0
.3
2.1
.9
.7
.9

1.1
.3
1.4
- .3
3.2
.8
.5
.9

.5
.4
.5
- .1
1.3
.8
.5
.8

.0
.0
.0
.3
-.2
1.0
.6
1.0

.2
- .2
.4
.9
- .2
1.4
.8
1.5

251.9
272.5
239.6
223.9
258.2
299.6
205.9
317.4

16.1
13.2
22.8

10.1
9.5
10.3

12.7
14.0
26.4

5.7
5.8
- 3 .5

13.2
14.4
23.1

11.7
5.8
3.1

1.0
.6
.5

1.1
.4
.0

.7
.4
.3

.5
.6
.7

.9
1.1
1.7

267.0
253.0
345.0

13.5
14.5
2.5
20.9
10.2
16.7

10.5
10.4
8.7
10.9
10.9
11.1

8.4
7.6
- 1 .4
12.2
10.9
6.2

13.5
14.5
31.0
7.5
9.9
7.8

8.3
7.4
4.3
8.9
11.8
12.9

12.0
12.1
.3
17.4
11.5
13.2

1.2'
1.2'
.1
1.6'
1.2'
1.4

.8'
.7'
-.6 '
1.3'
.9
.6'

.9'
1.0'
.6'
1.2'
.6'
1.1'

.8
.8
.0
1.1
.9
1.1

.4
.2
.0
.3
.9
.6

268.9
270.6
252.0
276.1
262.6
310.5

20.6
- 4 .1

26.1
7.2

.2
- .3

32.3
73.9

27.5
-4 .0

35.7
-2 3 .1

7.0'
-3 .3

- 1 .1 '
-2 .0

1.4
1.5

1.5
-2 .2

488.6
260.6

Other groupings

10 All items less fo o d ........................................
11 All items less food and energy....................
12 Homeownership............................................
P roducer P rices

13 Finished goods................................................
14 Consumer....................................................
15
Foods........................................................
16
Excluding foods......................................
17 Capital equipment......................................
18 Intermediate materials3 ................................
Crude materials
19 N onfood......................................................
20 Food ............................................................

1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers.




2.0
-1 .1

3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
S o u r c e . Bureau of Labor Statistics.

A50

Domestic Nonfinancial Statistics □ July 1981

2.16 GROSS NATIONAL PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1980
Account

1978

1979

1981

1980
Ql

Q2

Q3

Q4

Q l'

G ross N ational Product
1 Total...................................................................................................

2,156.1

2,413.9

2,626.1

2,571.7

2,564.8

2,637.3

2,730.6

2,853.0

2 Personal consumption expenditures......................................................
3 Durable goods......................................................................................
4 Nondurable goods................................................................................
5
Services..................................................................................................

1,348.7
199.3
529.8
619.6

1,510.9
212.3
602.2
696.3

1,672.8
211.9
675.7
785.2

1,631.0
220.9
661.1
749.0

1,626.8
194.4
664.0
768.4

1,682.2
208.8
674.2
799.2

1,751.0
223.3
703.5
824.2

1,810.0
238.3
726.0
845.8

6 Gross private domestic investm ent......................................................
7
Fixed investment..................................................................................
8
Nonresidential..................................................................................
9
Structures......................................................................................
10
Producers’ durable equipment..................................................
11
Residential structures......................................................................
12
Nonfarm........................................................................................

375.3
353.2
242.0
78.7
163.3
111.2
106.9

415.8
398.3
279.7
96.3
183.4
118.6
113.9

395.3
401.2
296.0
108.8
187.1
105.3
100.3

415.6
413.1
297.8
108.2
189.7
115.2
110.1

390.9
383.5
289.8
108.4
181.4
93.6
88.9

377.1
393.2
294.0
107.3
186.8
99.2
94.5

397.7
415.1
302.1
111.5
190.7
113.0
107.6

437.1
432.7
315.9
117.2
198.7
116.7
111.4

Change in business inventories..........................................................
Nonfarm............................................................................................

22.2
21.8

17.5
13.4

- 5 .9
- 4 .7

2.5
1.5

7.4
6.1

-1 6 .0
-1 2 .3

-1 7 .4
-1 4 .0

4.5
6.8

15 Net exports of goods and services........................................................
16 Exports..................................................................................................
17 Imports..................................................................................................

- 0 .6
219.8
220.4

13.4
281.3
267.9

23.3
339.8
316.5

8.2
337.3
329.1

17.1
333.3
316.2

44.5
342.4
297.9

23.3
346.1
322.7

29.2
367.4
338.2

18 Government purchases of goods and services....................................
19 Federal..................................................................................................
20
State and local......................................................................................

432.6
153.4
279.2

473.8
167.9
305.9

534.7
198.9
335.8

516.8
190.0
326.8

530.0
198.7
331.3

533.5
194.9
338.6

558.6
212.0
346.6

576.5
221.6
354.9

21 Final sales, to ta l......................................................................................
22
G ood s....................................................................................................
23
Durable..............................................................................................
24
Nondurable......................................................................................
25
Services..................................................................................................
26
Structures..............................................................................................

2,133.9
946.6
409.8
536.8
976.3
233.2

2,396.4
1,055.9
451.2
604.7
1,097.2
260.8

2,632.0
1,130.4
458.6
671.9
1,229.6
266.0

2,569.1
1,116.9
456.4
660.5
1,178.6
276.2

2,557.4
1,106.4
444.6
661.8
1,205.6
252.8

2,653.4
1,129.4
456.5
672.9
1,249.0
258.9

2,748.0
1,169.0
476.7
692.2
1,285.3
276.4

2,848.5
1,247.5
501.4
746.1
1,317.1
288.4

27 Change in business inventories..............................................................
28 Durable goods......................................................................................
29
Nondurable goods................................................................................

22.2
17.8
4.4

17.5
11.5
6.0

- 5 .9
- 4 .0
- 1 .8

2.5
-1 1 .8
14.3

7.4
3.3
4.1

-1 6 .0
- 8 .4
-7 .7

-1 7 .4
.7
-1 8 .1

4.5
- 4 .2
8.6

30 Memo: Total GNP in 1972 dollars....................................................

1,436.9

1,483.0

1,480.7

1,501.9

1,463.3

1,471.9

1,485.6

1,516.0

By source

13
14

By m ajor type o f product

N ational Income
31 Total...................................................................................................

1,745.4

1,963.3

2,121.4

2,088.5

2,070.0

2,122.4

2,204.8

2,291.1

32 Compensation of employees..................................................................
33 Wages and salaries..............................................................................
34
Government and government enterprises....................................
35
Other..................................................................................................
36
Supplement to wages and salaries....................................................
37
Employer contributions for social insurance..............................
38
Other labor in com e........................................................................

1,299.7
1,105.4
219.6
885.7
194.3
92.1
102.2

1,460.9
1,235.9
235.9
1,000.0
225.0
106.4
118.6

1,596.5
1,343.6
253.6
1,090.0
252.9
115.8
137.1

1,558.0
1,314.5
243.3
1,067.9
243.5
112.6
130.9

1,569.0
1,320.4
250.5
1,069.9
248.6
113.6
135.1

1,597.4
1,342.3
253.9
1,088.4
255.0
116.0
139.1

1,661.8
1,397.3
263.3
1,134.0
264.5
121.0
143.5

1,722.4
1,442.9
267.1
1,175.7
279.5
131.5
148.0

39 Proprietors’ income1................................................................................
40 Business and professional1 ................................................................
41
Farm1 ....................................................................................................

117.1
91.0
26.1

131.6
100.7
30.8

130.6
107.2
23.4

133.7
107.9
25.7

124.9
101.6
23.3

129.7
107.6
22.1

134.0
111.6
22.5

132.1
113.2
18.9

42 Rental income of persons2 ....................................................................

27.4

30.5

31.8

31.2

31.5

32.0

32.4

32.7

43 Corporate profits1....................................................................................
44 Profits before tax3................................................................................
45
Inventory valuation adjustment........................................................
6
Capital consumption adjustment......................................................

199.0
223.3
-2 4 .3
-1 3 .5

196.8
255.4
-4 2 .6
-1 5 .9

182.7
245.5
-4 5 .7
-1 7 .2

200.2
277.1
-6 1 .4
-1 5 .4

169.3
217.9
-3 1 .1
-1 7 .6

177.9
237.6
-4 1 .7
-1 7 .9

183.3
249.5
-4 8 .4
-1 7 .8

203.0
259.1
-3 9 .2
-1 6 .9

47 Net interest..............................................................................................

115.8

143.4

179.8

165.4

175.3

185.3

193.3

200.8

1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustments.




3. For after-tax profits, dividends, and the like, see table 1.49.
S o u r c e . Survey o f Current Business (Department of Commerce).

National Income Accounts
2.17

A51

PERSONAL INCOME AND SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1980
Account

1978

1979

1981

1980
Q2

Ql

Q3

Q4

Q lr

P ersonal Income and Saving

1 Total personal income.........................................................................

1,721.8

1,943.8

2,160.2

2,088.2

2,114.5

2,182.1

2,256.2

2,319.8

2 Wage and salary disbursem ents...................................................................
3
Commodity-producing industries............................................................

1,105.2
389.1
299.2
270.5
226.1
219.4

1,236.1
437.9
333.4
303.0
259.2
236.1

1,343.7
465.4
350.7
328.9
295.7
253.6

1,314.7
461.7
347.9
322.6
283.6
246.8

1,320.4
456.0
343.2
323.2
290.8
250.5

1,341.8
460.1
346.7
329.2
298.7
253.9

1,397.8
484.0
364.0
340.6
310.0
263.3

1,442.9
501.3
377.4
351.9
322.5
267.1

102.2
117.2
91.0
26.1
27.4
43.1
173.2
223.3
116.2

118.6
131.6
100.8
30.8
30.5
48.6
209.6
249.4
131.8

137.1
130.6
107.2
23.4
31.8
54.4
256.3
294.2
153.8

130.9
133.7
107.9
25.7
31.2
52.4
239.9
271.7
142.0

135.1
124.9
101.6
23.3
31.5
54.2
253.6
280.7
144.7

139.1
129.7
107.6
22.1
32.0
55.1
261.8
310.7
163.2

143.5
134.0
111.6
22.5
32.4
56.1
269.7
313.9
165.3

148.0
132.1
113.2
18.9
32.7
58.0
288.7
319.6
169.8

4
5
6

7

M anufacturing...........................................................................................
Distributive in d u stries................................................................................
Service in d u strie s.........................................................................................
Government and government enterprises............................................

8 Other labor i n c o m e .........................................................................................

9 Proprietors’ income i .........................................................................................
10
11
12
13
14
15
16

Business and p r o fessio n a l!.......................................................................
Farm1 ...............................................................................................................
Rental income o f persons2 ............................................................................
D ivid en d s.............................................................................................................
Personal interest in c o m e ................................................................................
Transfer p a y m e n ts ...........................................................................................
Old-age survivors, disability, and health insurance b en efits.........

17

Less: Personal contributions for social insurance.............................

69.6

80.6

87.9

86.2

85.9

88.1

91.2

102.3

18 E q u a ls: Personal in c o m e ..............................................................................

1,721.8

1,943.8

2,160.2

2,088.2

2,114.5

2,182.1

2,256.2

2,319.8

Less: Personal tax and nontax paym en ts............................................

258.8

302.0

338.5

323.1

330.3

341.5

359.2

372.0

20 E q u a ls: Disposable personal in com e.......................................................

1,462.9

1,641.7

1,821.7

1,765.1

1,784.1

1,840.6

1,897.0

1,947.8

21

19

Less: Personal o u tla y s................................................................................

1,386.6

1,555.5

1,720.4

1,678.7

1,674.1

1,729.2

1,799.4

1,858.9

22 E q u a ls: Personal savin g................................................................................

76.3

86.2

101.3

86.4

110.0

111.4

97.6

88.9

M emo :
Per capita (1972 dollars)
Gross national product................................................................................
Personal consumption expenditures.......................................................
Disposable personal in c o m e .....................................................................
Saving rate (p e rc e n t).......................................................................................

6,568
4,136
4,487
5.2

6,721
4,219
4,584
5.2

6,646
4,196
4,571
5.6

6,768
4,251
4,600
4.9

6,580
4,134
4,532
6.2

6,597
4,172
4,565
6.1

6,641
4,232
4,585
5.1

6,764
4,283
4,609
4.6

355.2

412.0

401.9

404.5

394.5

402.0

406.7

442.7

355.4
76.3
57.9
-2 4 .3

398.9
86.2
59.1
-4 2 .6

432.9
101.3
44.3
-4 5 .7

413.0
86.4
52.1
-6 1 .4

435.9
110.0
42.1
-3 1.1

446.5
111.4
42.8
-4 1 .7

436.4
97.6
40.4
-4 8 .4

447.7
88.9
52.3
-3 9 .2

136.4
84.8
.0

155.4
98.2
.0

175.4
111.8
.0

167.1
107.4
.0

173.0
110.7
.0

178.4
113.4
.5

183.2
115.8
- .5

187.5
119.0
.0

- 0 .2
-2 9 .2
29.0

11.9
-1 4 .8
26.7

-32.1
-6 1 .2
29.1

1.7
-3 6 .3
26.6

-2 9 .6
-6 6 .5
23.9

-4 5 .6
-7 4 .2
28.6

-3 0 .8
-6 7 .9
37.1

- 6 .2
-4 3 .3
37.0

23
24
25
26

G ross S aving

27 Gross saving........................................................................................
28
29
30
31

Gross private savin g.........................................................................................
Personal sa v in g ..................................................................................................
Undistributed corporate p r o f it s i................................................................
Corporate inventory valuation adjustm ent...............................................
Capital consumption allowances

32 Corporate.............................................................................................................
33 Noncorporate......................................................................................................
34 Wage accruals less disbursem ents..............................................................
35 Government surplus, or deficit ( —), national income and product
36
37

a cco u n ts......................................................................................................
F e d e r a l.............................................................................................................
State and lo ca l................................................................................................

38 Capital grants received by the United States, n et.................................

.0

1.1

1.1

1.1

1.1

1.1

1.1

1.2

39 Gross investment.................................................................................

361.6

414.1

401.2

407.3

392.5

405.0

400.1

446.0

40 Gross private dom estic.....................................................................................
41 Net foreign...........................................................................................................

375.3
-1 3 .8

415.8
- 1 .7

395.3
5.9

415.6
- 8 .3

390.9
1.7

377.1
27.8

397.7
2.3

437.1
8.9

42 Statistical discrepancy.........................................................................

6.4

2.2

- .7

2.8

-1 .9

3.0

- 6.6

3.4

1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




S o u r c e . Survey o f Current Business (Department of Commerce).

A52
3.10

International Statistics □ July 1981
U.S. INTERNATIONAL TRANSACTIONS Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted.1
1980'
Item credits or debits

1978

1979'

Q2

Ql
1 Balance on current account........................................................
2 Not seasonally adjusted..........................................................

1981

1980
Q3

Q4

Ql p

-14,075'

1,414

3,723

-2,095
-1,575

-5 4 5
905

4,975
1,149

1,390
3,244

3,087
3,368

3
4
5
6
7
8

Merchandise trade balance2....................................................
Merchandise exports.............................................. .............
Merchandise imports............................................................
Military transactions, n e t........................................................
Investment income, net3..........................................................
Other service transactions, n e t..............................................

-33,759
142,054
-175,813
738'
21,400'
2,613'

-27,346
184,473
-211,819
-1,947
33,462
2,839

-25,342
223,966
-249,308
-2,515
32,762
5,874

-10,126
54,898
-65,024
-9 1 8
9,836
991

-6,744
55,667
-62,411
-4 2 7
6,518
1,440

-2,902
56,252
-59,154
-4 5 5
8,154
1,681

-5,570
57,149
-62,719
-7 1 5
8,257
1,762

-4,602
61,117
-65,719
-7 0 1
8,869
1,033

9
10

Remittances, pensions, and other transfers........................
U.S. government grants (excluding military)......................

-1,884
-3 ,1 8 3 '

-2,057
-3,536

-2,397
-4,659

-5 4 2
-1,336

-5 4 5
-7 8 7

-5 9 1
-9 1 2

-7 2 0
-1 ,6 2 4

-5 6 2
-950

11 Change in U.S. government assets, other than official re­
serve assets, net (increase, - ) ..........................................

-4,644

-3,767

-5,165

-1,4 5 6

-1,1 8 7

-1,4 2 7

-1 ,0 9 4

-1 ,3 5 8

12 Change in U.S. official reserve assets (increase, - ) ............
13
Gold............................................................................................
14 Special drawing rights (S D R s )..............................................
15
Reserve position in International Monetary Fund..............
16 Foreign currencies....................................................................

732
-6 5
1,249
4,231
-4,683

-1,132
-6 5
-1,136
-1 8 9
257

-8,155
0
-1 6
-1,667
-6,472

-3,268
0
-1,152
-3 4
-2,082

-5 0 2
0
-1 1 2
-9 9
489

-1,1 0 9
0
-261
-2 9 4
-5 5 4

-4 ,2 7 9
0
1,285
-1 ,2 4 0
-4 ,3 2 4

-4 ,5 2 9
0
-1,441
-7 0 7
-2,381

17 Change in U.S. private assets abroad (increase, - ) 3............
18 Bank-reported claim s..............................................................
19 Nonbank-reported claims........................................................
20 U.S. purchase of foreign securities, n e t ..............................
21
U.S. direct investments abroad, net3....................................

-57,158 '
-33,667 '
-3,853
-3 ,5 8 2 '
-16,056'

-57,739
-26,213
-3,026
-4,552
-23,948

-71,456
-46,947
-2,653
-3,310
-18,546

-7,915
-1,203
-1,083
-7 6 6
-4,863

-24,152
-20,165
92
-1,369
-2,710

-16,766
-12,440
343
-8 1 8
-3,851

-22,622
-13,139
-2,005
-3 5 6
-7,122

-12,633
-11,163
n.a.
-4 8 8
-9 8 2

22 Change in foreign official assets in the United States
(increase, + ) ........................................................................
23
U.S. Treasury securities..........................................................
24
Other U.S. government obligations......................................
25
Other U.S. government liabilities4........................................
26
Other U.S. liabilities reported by U.S. banks....................
27
Other foreign official assets5 ..................................................

33,561'
23,555'
666
2,359'
5,551'
1,4530'

-13,757
-22,435
463
-133
7,213
1,135

15,492
9,683
2,187
636
-1 5 9
3,145

-7,462
-5,357
801
-6 8
-3,198
360

-7,557
-4,360
250
420
-1,6 7 6
851

7,686
3,769
549
80
1,823
1,465

7,712
6,911
587
205
-4 6 0
469

5,384
7,055
454
55
-3 ,0 0 9
829

28 Change in foreign private assets in the United States
(increase, + ) 3 ......................................................................
29
U.S. bank-reported liabilities................................................
30 U.S. nonbank-reported liabilities..........................................
31
Foreign private purchases of U.S. Treasury securities, net
32
Foreign purchases of other U.S. securities, net..................
33
Foreign direct investments in the United States, net3 . . . .

30,187'
16,141'
1,717'
2,178'
2,254'
7,896

52,703
32,607
2,065
4,820
1,334
11,877

34,769
10,743
5,109
2,679
5,384
10,853

14,971
6,599
416
3,300
2,435
2,221

-3 2 6
-4,5 0 9
1,092
-1,260
468
3,883

3,965
916
373
-2 5 4
241
2,689

16,157
7,737
3,228
893
2,240
2,059

2,157
-3 ,6 6 2
n.a.
1,405
2,449
1,965

0
11,398'

1,139
21,140

1,152
29,640

1,152
6,073
-2 0 6

0
18,151
1,355

0
2,676
-3,291

0
2,736
2,139

1,093
6,799
-3 4 4

11,398

21,140

29,640

6,279

16,796

5,967

597

7,143

34 Allocation of SDRs......................................................................
35 Discrepancy..................................................................................
36
Owing to seasonal adjustments..............................................
37
Statistical discrepancy in recorded data before seasonal
adjustment........................................................................
M emo :

Changes in official assets
U.S. official reserve assets (increase, - ) ............................
Foreign official assets in the United States
(increase, + ) ....................................................................
40 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 22
above) ....................................................................................
41 Transfers under military grant programs (excluded from
lines 4, 6, and 10 a b o v e)....................................................
38
39

732

-1,132

-8,155

-3,268

502

-1,109

-4,279

-4 ,5 2 9

31,202

-13,624

14,856

-7,394

7,137

7,606

7,507

5,329

-1,137

5,543

12,744

2,988

4,617

4,115

1,024

5,188

236

305

635

144

155

125

211

193

1. Seasonal factors are no longer calculated for lines 12 through 41.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing; military exports
are excluded from merchandise data and are included in line 6.
3. Includes reinvested earnings of incorporated affiliates.




4. Primarily associated with military sales contracts and other transactions ar­
ranged 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.
N o te . Data are from Bureau of Economic Analysis, Survey o f Current Business
(U.S. Department of Commerce).

Trade and Reserve Assets
3.11

A53

U.S. FOREIGN TRADE
Millions of dollars; monthly data are seasonally adjusted.
1980
Item

1978

1979

Nov.
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments............................................
2

143,682

181,860

1981

1980

220,684

Dec.

18,715

19,251

GENERAL IMPORTS including mer­
chandise for immediate consump­
tion plus entries into bonded
warehouses..........................................

174,759

209,458

245,010

19,860

21,436

3 Trade balance.........................................

-31,075

-27,598

-24,326

-1,145

-2,185

N o te . The data in this table are reported by the Bureau of Census data on a
free-alongside-ship (f.a.s.) value basis—that is, value at the port of export. Begin­
ning in 1981, foreign trade of the U.S. Virgin Islands is included in the Census
basis trade data; this adjustment has been made for all data shown in the table.
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 adjustments are: (a) the addition of exports to Canada
not covered in Census statistics, and (b) the exclusion of military sales (which are
combined with other military transactions and reported separately in the “service

3.12

Jan.

18,825

Feb.

Mar

Apr.

May

19,764

21,434

23,194

21,922

20,949

22,289

21,310

-4,369

-2,158

485

-2,471

-2,441

19,818

18,869

account” in table 3.10, line 6). On the im port side, additions are made for gold,
ship purchases, imports of electricity from Canada and other transactions; military
payments are excluded and shown separately as indicated above.
S o u r c e . FT900 “Summary of U.S. Export and Import Merchandise Trade”
(U .S. Department of Commerce, Bureau of the Census).

U.S. RESERVE ASSETS
Millions of dollars, end of period
1980
Type

1978

1979

1981

1980
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

1 Total*......................................................

18,650

18,956

26,756

25,673

26,756

28,316

29,682

30,410

29,693

29,395

2 Gold stock, including Exchange Stabili­
zation Fund1 ......................................

11,671

11,172

11,160

11,162

11,160

11,159

11,156

11,154

11,154

11,154

3 Special drawing rights2,3 ..........................

1,558

2,724

2,610

3,954

2,610

3,628

3,633

3,913

3,712

3,652

4

Reserve position in International Mone­
tary Fund2 ..........................................

1,047

1,253

2,852

1,822

2,852

2,867

3,110

3,448

3,576

3,690

5 Foreign currencies4,5 ................................

4,374

3,807

10,134

8,735

10,134

10,662

11,783

11,895

11,251

10,899

1. Gold held under earmark at Federal Reserve Banks for foreign and inter­
national accounts is not included in the gold stock of the United States; see table
3.22.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of 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 19/4.




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 net transactions in SDRs.
4. Beginning November 1978, valued at current market exchange rates.
5. Includes U.S. government securities held under repurchase agreement against
receipt of foreign currencies, if any.

A54

International Statistics □ July 1981

3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data
Millions of dollars, end of period
1980
Asset account

1977

19781

1981

1979
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr .p

All foreign countries
1 Total, all currencies................................

258,897

306,795

364,233

383,356

389,184

397,233

397,167r

401,050r

409,891

409,275

2 Claims on United States..........................
3 Parent bank............................................
4 Other........................................................

11,623
7,806
3,817

17,340
12,811
4,529

32,302
25,929
6,373

30,476
21,440
9,036

30,617
22,254
8,363

28,459
20,202
8,257

29,522r
20,662'
8,860'

32,008'
21,454'
10,554'

30,256
18,781
11,475

34,514
23,091
11,423

5 Claims on foreigners..................................
6 Other branches of parent b a n k ..........
7
B an k s......................................................
8
Public borrowers2 ..................................
9 Nonbank foreigners..............................

238,848
55,772
91,883
14,634
76,560

278,135
70,338
103,111
23,737
80,949

317,175
79,661
123,413
26,072
88,029

335,623
72,477
138,296
26,548
98,302

340,848
74,062
139,977
26,935
99,874

350,993
76,552
144,627
27,626
102,188

349,920'
75,609'
144,753'

350,973'
75,510'
146,152'
28,068'
101,243'

361,229
77,603
150,596
28,727
104,303

356,365
76,988
146,800
28,090
104,487

21,129 r

101,829'

10 Other assets................................................

8,425

11,320

14,756

17,257

17,719

17,781

17,725'

18,069'

18,406

18,396

11 Total payable in U.S. dollars...................

193,764

224,940

267,711

279,827

284,401

289,860

292,524r

296,913r

302,667

306,290

12 Claims on United S tates..........................
13 Parent bank............................................
14 Other........................................................

11,049
7,692
3,357

16,382
12,625
3,757

31,171
25,632
5,539

29,059
21,043
8,016

29,173
21,853
7,320

27,190
19,896
7,294

28,266'
20,370'
7,896'

30,754'
21,201'
9,553'

29,063
18,566
10,497

33,301
22,844
10,457

15 Claims on foreigners..................................
16 Other branches of parent b a n k ..........
17 B an k s......................................................
18 Public borrowers2 ..................................
19 Nonbank foreigners..............................

178,896
44,256
70,786
12,632
51,222

203,498
55,408
78,686
19,567
49,837

229,118
61,525
96,261
21,629
49,703

242,152
55,249
109,438
22,578
54,887

246,363
57,238
110,799
22,846
55,480

253,451
58,273
115,984
23,398
55,796

254,721'
58,836'
116,900'
23,208'
55,777'

256,234'
57,922'
118,392'
23,500'
56,420'

263,468
59,850
121,475
24,004
58,139

262,488
59,618
119,583
23,739
59,548

20 Other assets................................................

3,820

5,060

7,422

8,616

8,865

9,219

9,537'

9,925'

10,136

10,501

United Kingdom
21 Total, all currencies................................

90,933

106,593

130,873

138,158

140,715

142,781

143,609

144,793

145,459

142,599

22 Claims on United S tates..........................
23
Parent bank............................................
24 Other........................................................

4,341
3,518
823

5,370
4,448
922

11,117
9,338
1,779

8,216
5,969
2,247

8,771
6,552
2,219

7,508
5,275
2,233

7,727
5,278
2,449

9,211
6,471
2,740

9,413
6,405
3,008

8,518
5,766
2,752

25 Claims on foreigners.......................... ..
26 Other branches of parent bank ..........
27 B an k s................................................
28 Public borrowers2 ........................ ..........
29 Nonbank foreigners..............................

84,016
22,017
39,899
2,206
19,895

98,137
27,830
45,013
4,522
20,772

115,123
34,291
51,343
4,919
24,570

123,854
31,431
56,723
6,113
29,587

125,859
32,267
57,423
6,405
29,764

129,232
34,538
57,658
6,684
30,352

130,174
35,136
58,489
6,620
29,929

129,646
35,406
58,554
6,626
29,060

129,992
34,583
58,714
6,929
29,766

128,095
34,614
56,816
6,844
29,821

30 Other assets................................................

2,576

3,086

4,633

6,088

6,085

6,041

5,708

5,936

6,054

5,986

31 Total payable in U.S. dollars...................

66,635

75,860

94,287

95,287

97,246

98,913

101,038

103,048

102,933

101,523

32 Claims on United States..........................
33 Parent bank.................................. ..........
34 Other........................................................

4,100
3,431
669

5,113
4,386
727

7,647
5,817
1,830

8,233
6,410
1,823

7,115
5,229
1,886

7,304
5,221
2,083

8,765
6,418
2,347

9,001
6,381
2,620

8,080
5,715
2,365

35 Claims on foreigners..................................
36
Other branches of parent b a n k ..........
37
B an k s............................................ ..........
38 Public borrowers2 ..................................
39 Nonbank foreigners..............................

61,408
18,947
28,530
1,669
12,263

69,416
22,838
31,482
3,317
11,779

81,294
28,928
36,760
3,319
12,287

84,849
25,593
40,312
4,551
14,393

86,246
26,710
40,542
4,706
14,288

88,950
28,231
41,373
4,909
14,437

90,682
28,768
42,887
4,816
14,211

91,204
28,946
42,751
4,930
14,577

90,696
28,132
42,609
5,168
14,787

90,199
28,393
41,767
5,093
14,946

40 Other assets................................................

1,126

1,331

2,247

2,791

2,767

2,848

3,052

3,079

3,236

3,244

10,746
9,297
1,449c

Bahamas and Caymans
41 Total, all currencies................................

79,052

91,735

108,977

119,524

123,837

123,460

124,809

127,801

132,137

42 Claims on United S tates..........................
43
Parent bank............................................
44 Other........................................................

5,782
3,051
2,731

9,635
6,429
3,206

19,124
15,196
3,928

19,656
13,837
5,819

119,367
18,325
13,071
5,254

17,751
12,631
5,120

18,370
12,842
5,528

19,150
12,417
6,733

17,348
10,017
7,331

22,473
14,913
7,560

45 Claims on foreigners..................................
46
Other branches of parent b a n k ..........
47
B an k s......................................................
Public borrowers2 ..................................
48
49
Nonbank foreigners..............................

71,671
11,120
27,939
9,109
23,503

79,774
12,904
33,677
11,514
21,679

86,718
9,689
43,189
12,905
20,935

95,959
13,076
49,900
12,441
20,542

96,800
13,118
50,626
12,213
20,843

101,926
13,315
54,888
12,577
21,146

100,792
12,956
54,252
12,558
21,026

101,199
11,998
55,280
12,605
21,316

105,970
14,002
57,065
12,579
22,324

105,075
13,526
56,489
12,205
22,855

50 Other assets................................................

1,599

2,326

3,135

3,909

4,242

4,160

4,298

4,460

4,483

4,589

51 Total payable in U.S. dollars...................

73,987

85,417

102,368

113,683

113,560

117,654

117,549

119,007

121,900

126,503

For notes see opposite page.




Overseas Branches
3.13

A55

Continued

1980
Liability account

1977

19781

1981

1979
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.p

All foreign countries
52 Total, all currencies................................

285,897

306,795

364,233

383,356

389,184

397,233

397,167r

401,050'

409,891

409,275

53 To United States........................................
54
Parent bank............................................
55
Other banks in United States..............
56
Nonbanks................................................

44,154
24,542
19,613

58,012
28,654
12,169
17,189

66,686
24,530
13,968
28,188

84,161
37,184
12,872
34,105

86,589
36,956
13,420
36,213

90,942
39,135
14,473
37,289

92,362'
38,653'
13,591'
40,118

90,685'
36,373'
13,988
40,324

97,674
43,023
14,372
40,279

105,761
45,335
15,471
44,955

57 To foreigners..............................................
58
Other branches of parent b a n k ..........
59
B an k s......................................................
60
Official institutions................................
61
Nonbank foreigners..............................

206,579
53,244
94,140
28,110
31,085

238,912
67,496
97,711
31,936
41,769

283,344
77,601
122,849
35,664
47,230

285,366
69,776^
132,195
30,722
52,673

288,385
71,554
132,281
31,145
53,405

291,780
73,938
130,654
32,440
54,748

290,527'
73,003'
132,859'
28,938'
55,727'

296,445'
73,710'
134,835'
28,609'
58,291'

297,801
75,138
133,715
29,871
59,077

288,733
74,416
127,551
28,026
58,740

62 Other liabilities..........................................

8,163

9,871

14,203

13,829

14,210

14,556

14,278'

13,920'

14,416

14,781

63 Total payable in U.S. dollars....................

198,572

230,810

273,819

287,318

292,549

300,988

303,223'

307,530 r

313,427

317,651

64 To United States........................................
65
Parent bank............................................
66
Other banks in United States..............
67
Nonbanks................................................

42,881
24,213
18,669

55,811
27,519
11,915
16,377

64,530
23,403
13,771
27,356

81,255
35,419
12,593
33,243

83,764
35,233
13,124
35,407

88,123
37,496
14,203
36,424

89,756'
37,018'
13,417'
39,321

88,267'
34,897'
13,757
39,613

95,263
41,512
14,235
39,516

103,329
43,876
15,298
44,155

68 To foreigners..............................................
69
Other branches of parent b a n k ..........
70
B an k s......................................................
71
Official institutions................................
72
Nonbank foreigners..............................

151,363
43,268
64,872
23,972
19,251

169,927
53,396
63,000
26,404
27,127

201,476
60,513
80,691
29,048
31,224

198,682
53,780
86,994
23,373
34,535

200,937
55,599
86,556
23,870
34,912

204,697
56,965
86,596
24,691
36,445

205,200'
56,894'
89,405'
21,861'
37,040'

210,690
56,895'
91,654'
21,911'
40,230'

209,280
58.328
87,521
23,102
40.329

204,789
58,044
85,278
21,444
40,023

73 Other liabilities..........................................

4,328

5,072

7,813

7,381

7,848

8,168

8,267'

8,573'

8,884

9,533

United Kingdom
74 Total, all currencies..................................

90,933

106,593

130,873

138,158

140,715

142,781

143,609

144,793

145,459

142,599

75 To United States........................................
76 Parent bank ............................................
77 Other banks in United States..............
78 Nonbanks................................................

7,753
1,451
6,302

9,730
1,887
4,189
3,654

20,986
3,104
7,693
10,189

19,157
2,712
5,800
10,645

20,594
3,198
5,732
11,664

21,735
4,176
5,716
11,843

23,226
4,228
5,436
13,562

22,783
3,190
5,869
13,724

24,374
4,242
5,519
14,613

26,006
4,540
5,915
15,551

79 To foreigners..............................................

80,736
9,376
37,893
18,318
15,149

93,202
12,786
39,917
20,963
19,536

104,032
12,567
47,620
24,202
19,643

113,539
13,940
56,772
19,807
23,020

114,813
13,951
58,127
20,437
22,298

115,582
13,933
55,928
21,412
24,309

115,236
13,734
57,371
19,199
24,932

116,927
13,422
57,505
19,607
26,393

115,816
13,913
56,110
19,743
26,050

111,486
13,491
53,563
18,385
26,047

80
81
82
83

Other branches of parent b a n k ..........
B an k s......................................................
Official institutions................................
Nonbank foreigners..............................

84 Other liabilities..........................................

2,445

3,661

5,855

5,462

5,308

5,464

5,147

5,083

5,269

5,107

85 Total payable in U.S. dollars....................

67,573

77,030

95,449

97,055

99,135

102,300

104,123

106,448

106,637

105,864

86 To United States........................................
87
Parent bank............................................
88
Other banks in United States..............
89
Nonbanks................................................

7,480
1,416
6,064

9,328
1,836
4,101
3,391

20,552
3,054
7,651
9,847

18,551
2,634
5,714
10,203

19,978
3,101
5,616
11,261

21,080
4,078
5,626
11,376

22,597
4,126
5,343
13,128

22,245
3,132
5,757
13,356

23,927
4,160
5,487
14,280

25,497
4,445
5,841
15,211

90 To foreigners..............................................
91
Other branches of parent b a n k ..........
92
B an k s......................................................
93
Official institutions................................
94
Nonbank foreigners..............................

58,977
7,505
25,608
15,482
10,382

66,216
9,635
25,287
17,091
14,203

72,397
8,446
29,424
20,192
14,335

76,114
9,891
35,495
15,338
15,390

76,696
9,770
35,998
15,989
14,939

78,512
9,600
35,177
17,024
16,711

78,768
9,591
36,463
14,941
17,773

81,100
9,184
37,014 15
15,420
19,482

79,501
9,297
34,553
15,718
19,933

77,212
9,168
34,117
14,473
19,454

95 Other liabilities..........................................

1,116

1,486

2,500

2,390

2,461

2,708

2,758

3,103

3,209

3,155

Bahamas and Caymans
% Total, all currencies................................

79,052

91,735

108,977

119,524

119,367

123,837

123,460

124,809

127,801

132,137

97 To United States........................................

32,176
20,956
11,220

39,431
20,482
6,073
12,876

37,719
15,267
5,204
17,248

56,123
27,666
5,957
22,500

56.860
26.861
6,528
23,471

59,666
28,181
7,379
24,106

58,928
26,563
7,126
25,239

58,607
26,222
7,165
25,220

64,031
31,746
7,883
24,402

69,576
33,034
8,618
27,924

45,292
12,816
24,717
3,000
4,759

50,447
16,094
23,104
4,208
7,041

68,598
20,875
33,631
4,866
9,226

60,593
16,720
29,202
4,610
10,061

59,492
15,878
28,933
4,368
10,313

61,218
17,040
29,895
4,361
9,922

61,597
17,819
30,050
4,204
9,524

63,323
18,781
30,289
3,663
10,590

60,875
17,436
28,671
4,403
10,365

59,326
18,150
26,753
4,079
10,344

98
99
100

Parent bank............................................
Other banks in United States..............
Nonbanks................................................

101 To foreigners..............................................
102
Other branches of parent b a n k ..........
103 B a n k s......................................................
104
Official institutions................................
105
Nonbank foreigners..............................
106 Other liabilities..........................................

1,584

1,857

2,660

2,808

3,015

2,953

2,935

2,879

2,895

3,235

107 Total payable in U.S. dollars....................

74,463

87,014

103,460

115,166

115,121

119,657

119,214

120,714

123,785

128,309

1. In May 1978 the exemption level for branches required to report was increased,
which reduced the number of reporting branches.
2. In May 1978 a broader category of claims on foreign public borrowers, in-




eluding corporations that are majority owned by foreign governments, replaced
the previous, more narrowly defined claims on foreign official institutions.

A56
3.14

International Statistics □ July 1981
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1980
1978

Item

1979

Dec.
1 Total1...........................................................................

1981

1980
Jan.

Feb.

M ar.^

Apr.P

MayP

162,625

149,546

164,402

164,402

162,778

162,384

169,726

169,746

170,351

165,075

23,326
67,671

30,540
47,666

30,381
56,243

30,381
56,243

27,008
56,522

24,864
56,829

27,366
60,306

27,386
60,306

25,729
61,431

23,657
57,612

35,894
20,970
14,764

37,590
17,387
16,363

41,431
14,654
21,693

41,431
14,654
21,693

42,295
14,654
22,299

43,699
14,494
22,498

44,783
14,294
22,977

44,783
14,294
22,977

45,278
14,294
23,619

45,599
14,294
23,913

93,089
2,486
5,046
58,854
2,408
742

85,633
1,898
6,291
52,827
2,412
485

81,592
1,562
5,688
70,608
4,123
829

81,592
1,562
5,688
70,608
4,123
829

80,434
1,174
5,456
70,557
3,973
1,184

78,334
1,089
5,241
72,667
3,948
1,105

79,981
1,437
6,365
76,702
4,089
1,152

79,999
1,437
6,365
76,705
4,088
1,152

78,423
1,177
5,919
78,806
4,188
1,838

71,602
1,365
5,496
80,559
3,928
2,125

By type
2 Liabilities reported by banks in the United States2 .
3 U.S. Treasury bills and certificates3 ..........................
U.S. Treasury bonds and notes
4 Marketable..................................................................
5 Nonmarketable4 ........................................................
6 U.S. securities other than U.S. Treasury securities5
By area

7
8
9
10
11
12

Western Europe1............................................................
Canada ............................................................................
Latin America and Caribbean....................................
A sia..................................................................................
A frica..............................................................................
Other countries6 ............................................................

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.
Data in the two columns for this date differ because of changes in reporting
coverage. Figures in the first column are comparable in coverage with those shown
for the preceding month; figures in the second column are comparable with those
for the following month.

1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial
paper, negotiable time certificates of deposit, and borrowings under repurchase
agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes bonds
and notes payable in foreign currencies.

3.15

N o te . Based on Treasury Department data and on data reported to the Treasury
Department by banks (including Federal Reserve Banks) and securities dealers in
the United States.

LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1980
Item

1977

1978

June
1 Banks’ own liabilities............................................................
2 Banks’ own claims1................................................................
3
D eposits..............................................................................
4
Other claims........................................................................
5 Claims of banks’ domestic customers2 ..............................

925
2,356
941
1,415

1. Includes claims of banks’ domestic customers through March 1978.
2. Assets owned by customers of the reporting bank located in the United States
that represent claims on foreigners held by reporting banks for the accounts of
their domestic customers.




2,406
3,671
1,795
1,876
358

1981

1979

1,918
2,419
994
1,425
580

2,739
2,874
1,090
1,784
798

Sept.
2,754
3,203
1,169
2,035
595

Mar.j^

Dec.
3,748
4,206
2,507
1,699
962

3,268
4,238
1,697
2,542
444

3,262
4,245
1,758
2,488
444

A Data in the two columns for this date differ because of changes in reporting
coverage. Figures in the first column are comparable in coverage with those shown
for the preceding quarter; figures in the second column are comparable with those
for the following quarter.
N o te . Data on claims exclude foreign currencies held by U.S. monetary au­

thorities.

Bank-Reported Data
3.16

LIABILITIES TO FOREIGNERS
Payable in U.S. dollars

A57

Reported by Banks in the United States

Millions of dollars, end of period
1981
Holder and type of liability

1977

1978

1979

1980
Jan.

Feb.

M ar.^

Apr.

MayP

126,168

166,842

187,521

205,295

202,359

201,195

203,359r

204,993

213,025

213,255

78,661
19,218
12,427
9,705
37,311

117,196
23.303
13.623
16,453
63,817

124,789
23,462
15,076
17,581
68,670

122,857
22,149
15,898
14,685
70,125

121,528
23,300
15,778
13,476
68,973

120,217'
21,308'
16,272
15,947'
66,690'

120,425
21,216
16,304
16,199
66,707

128,046
22,644
15,970
14,532
74,901

132,014
22,257
16,026
12,347
81,384

88,181
68,202

70,325
48,573

80,506
57,595

79,501
57,673

79,668
58,360

83,142'
62,073

84,568
62,156

84,979
63,034

81,241
59,336

17,472
2,507

1 All foreigners..............................................................

19,396
2,356

20,079
2,832

19,050
2,778

18,350
2,959

18,226'
2,843

18,207
4,205

18,127
3,818

17,604
4,301

3,274

2,607

2,356

2,342

1,961

2,003

1,854r

1,854

1,804

1,803

906
330
84
492

714
260
151
303

442
146
85
211

419
212
71
137

317
186
76
54

293
126
67
100

655
178
81
396

498
149
78
271

1,701
201

1,643
102

1,900
254

1,542
88

1,687
368

1,561'
333

1,561
333

1,149
63

1,304
213

1,499
1

1,538
2

1,646
0

1,453
0

1,319
0

1,228'
0

1,228
0

1,086
0

1,091
0

3
4
5

Demand deposits........................................................
Time deposits1............................................................
Other2 ........................................................................

18,996
11,521

8
9

U.S. Treasury bills and certificates5 ......................
Other negotiable and readily transferable

48,906

11 Nonmonetary international and regional

organizations7............................................. .........

293
126
67
100

13
14
15

Demand deposits........................................................
Time deposits1............................................................
Other2 ........................................................................

231
139

17
18

U.S. Treasury bills and certificates........................
Other negotiable and readily transferable
instruments6
...
......................
Other
......................................................................

706

20 Official institutions8 ...................................................

65,822

90,742

78,206

86,624

83,530

81,693

87,672 r

87,692

87,160

81,269

3,528
1,797

12,165
3,390
2,560
6,215

18,292
4,671
3,050
10,571

17,826
3,771
3,612
10,443

15,222
3,869
3,343
8,010

13,938
3,580
2,997
7,361

16,200'
3,338
2,920
9,941'

16,220
3,232
2,938
10,050

14,678
3,768
2,660
8,250

13,412
3,444
2,642
7,326

78,577
67,415

59,914
47,666

68,798
56,243

68,308
56,522

67,755
56,829

71,472'
60,306

71,472
60,306

72,482
61,431

67,857
57,612

10,992
170

12,196
52

12,501
54

11,756
30

10,894
32

11,080'
86

11,080
86

11,026
25

10,223
22

57,423

88,316

96,415

96,659

96,608

93,018'

94,338

102,493

108,454

52,626
83,299
90,594
86,649'
90,456
90,319
15,315
19,482
21,786
20,469
21,346
19,958'
11,257 Demand deposits.................................................... 12,585'
13,285
14,287
14,188
12,889
32
1,429
1,667
1,703
1,857
1,813
2,324
2,629
4,530
5,895
5,723
5,245
5,049'

86,620
19,914
12,588
2,305
5,021

95,046
20,145
13,493
1,551
5,101

100,327
18,943
13,394
1,687
3,862

66,690'

66,707

74,901

81,384

6,369'
826

7,717
827

7,446
839

8,127
940

19

21 Banks’ own liabilities
......................
22
Demand deposits........................................................
23
Time deposits1............................................................
24
Other2 ......................................................................
25 Banks’ custody liabilities4
..................................
26
U.S. Treasury bills and certificates5 ......................
27
Other negotiable and readily transferable
instruments6 ........................................................
28
Other
......................................................................
29 Banks9.........................................................................

47,820

42,335

30 Banks’ own liabilities....................................................
31
Unaffiliated foreign banks........................................
33
34

Time deposits1........................................................
Other2 ......................................................................

35

10,933
2,040

Own foreign offices3..................................................

37,311

36 Banks’ custody liabilities4 ............................................
141
38
39

Other negotiable and readily transferable
instruments6 ........................................................
Other
......................................................................

40 Other foreigners........................................................

Time deposits..............................................................
Other2..........................................................................

45 Banks’ custody liabilities4 ............................................
........................
47
Other negotiable and readily transferable
instruments6 ........................................................
48
Other
......................................................................
49 Memo: Negotiable time certificates of deposit
in custody for foreigners......................................

70,125

68,973

2,415
2,179

14,736

16,070

18,642

4,304
7,546

12,964
4,242
8,353
368

14,891
5,087
8,755
1,048

240

3,106
285

3,751
382

2,557
264

3,247
123

3,185
190

2,985
170

3,287
201

11,007

10,984

10,745

10,267

9,868

1. Excludes negotiable time certificates of deposit, which are included in “Other
negotiable and readily transferable instruments.” Data for time deposits before
April 1978 represent short-term only.
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and foreign sub­
sidiaries consolidated in “Consolidated Report of Condition” filed with bank reg­
ulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign
banks: principally amounts due to head office or parent foreign bank, and foreign
branches, agencies or wholly owned subsidiaries of head office or parent foreign
bank.
4. Financial claims on residents of the United States, other than long-term se­
curities, held by or through reporting banks.




68,670

2,425
2,072

41 Banks’ own liabilities....................................................
43
44

63,817

4,797
5,017
5,959
6,065
6,289
422
623
631
714
37 300 Treasury bills and certificates........................
U.S.
2,748
2,588

2,856
2,578

2,850
2,726

2,928'
2,615

2,913
3,977

2,932
3,675

3,053
4,134

19,914

20,209

20,891

20,816r

21,109

21,569

21,730

17,667
5,205
11,678
784

17,777
5,270
11,620
888

3,817
690

3,902
701

3,952
571

2,991'
141

2,986
141

3,083
119

3,237
145

9,893'

9,887

9,777

9,620

16,065
16,623
16,955
17,076'
17,291
5,179
5,246
5,259
5,270
425,356
Demand deposits........................................................
9,676
10,628
10,892
10,961
10,995
1,033
815
816
856'
1,027
3,586
3,740'
3,849
3,937
432
607
449
46 474
U.S. Treasury bills and certificates

5. Includes nonmarketable certificates of indebtedness and Treasury bills issued
to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time cer­
tificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments and the Bank for
International Settlements.
9. Excludes central banks, which are included in “Official institutions.”
A Data in the two columns for this date differ because of changes in reporting
coverage. Figures in the first column are comparable in coverage with those shown
for the preceding month; figures in the second column are comparable with those
for the following month.

A58
3.16

International Statistics □ July 1981
C ontinued
1981
Area and country

1977

1978

1979

1980
Jan.

Feb.

M ar.^

Apr.

May?

1 Total...........................................................................

126,168

166,842

187,521

205,295

202,359

201,195

203,359r

204,993

213,025

213,255

2 Foreign countries........................................................

122,893

164,235

185,164

202,953

200,398

199,192

201,505r

203,139

211,221

211,452

3 Europe............................................................................
Austria........................................................................
Belgium-Luxembourg................................................
Denmark......................................................................
Finland........................................................................
France ..........................................................................
Germany......................................................................
Greece..........................................................................

60,295
318
2,531
770
323
5,269
7,239
603
6,857
2,869
944
273
619
2,712
12,343
130
14,125
232
1,804
98
236

85,172
513
2,550
1,946
346
9,214
17,283
826
7,739
2,402
1,271
330
870
3,121
18,225
157
14,272
254
3,440
82
330

90,952
413
2,375
1,092
398
10,433
12,935
635
7,782
2,337
1,267
557
1,259
2,005
17,954
120
24,700
266
4,070
52
302

90,897
523
4,019
497
455
12,125
9,973
670
7,572
2,441
1,344
374
1,500
1,737
16,689
242
22,680
681
6,939
68
370

89,701
554
4,062
420
264
12,168
10,336
524
6,743
2,568
899
370
1,416
1,365
16,631
203
24,209
296
6,225
46
401

89,181
551
4,782
432
355
12,521
9,296
563
5,987
2,540
1,037
358
1,388
2,078
16,636
231
24,325
269
5,385
84
363

91,338''
522
4,698'
463
332
12,959'
12,299'
593
3,446'
2,324
1,575
356
1,631
2,408'
16,844'
235
24,715
202
5,338'
47
352

92,495
522
4,698
461
332
12,950
12,305
593
3,453
2,328
1,575
356
1,631
2,408
16,856
235
25,836
202
5,356
47
350

90,083
526
4,967
434
341
13,122
12,489
604
3,600
2,304
1,477
309
1,352
2,799
15,768
209
24,311
238
4,933
37
264

87,345
497
5,509
526
290
11,364
9,468
543
3,008
2,205
1,648
336
1,677
2,518
15,838
182
25,485
270
5,600
85
294

4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

Netherlands................................................................
Norway........................................................................
Portugal......................................................................
Spain............................................................................
Sweden ........................................................................
Switzerland..................................................................
Turkey..........................................................................
United Kingdom........................................................
Yugoslavia..................................................................
Other Western Europe1............................................
U .S.S.R........................................................................
Other Eastern Europe2 ............................................

24 Canada ............................................................................

4,607

6,969

7,379

10,031

9,802

9,131

8,570'

8,610

10,365

11,221

25 Latin America and Caribbean....................................
26
Argentina....................................................................
27
Bahamas......................................................................
Bermuda......................................................................
28
29
Brazil............................................................................
30
British West Indies....................................................
31
C hile............................................................................
32
Colom bia....................................................................
33
C uba............................................................................
34
Ecuador ......................................................................
35
Guatemala3 ................................................................
36 Jamaica3 ......................................................................
M exico........................................................................
37
Netherlands Antilles..................................................
38
39
Panama........................................................................
40
Peru..............................................................................
41
Uruguay ......................................................................
42
Venezuela....................................................................
Other Latin America and Caribbean....................
43

23,670
1,416
3,596
321
1,396
3,998
360
1,221
6
330
2,876
196
2,331
287
243
2,929
2,167

31,638
1,484
6,752
428
1,125
5,974
398
1,756
13
322
416
52
3,467
308
2,967
363
231
3,821
1,760

49,686
1,582
15,255
430
1,005
11,138
468
2,617
13
425
414
76
4,185
499
4,483
383
202
4,192
2,318

53,170
2,132
16,381
670
1,216
12,766
460
3,077
6
371
367
97
4,547
413
4,718
403
254
3,170
2,123

53,229
1,857
16,164
475
1,339
12,798
501
3,085
6
389
428
112
4,595
599
4,460
401
290
3,794
1,936

52,275
1,998
15,916
804
1,266
12,144
431
3,087
7
449
461
101
4,600
523
3,984
447
266
3,925
1,869

50,818'
1,917
14,183
915'
1,151'
11,566'
549
2,970
6
511
446
94
4,755
436
4,297
341'
306
4,218
2,158'

51,178
1,917
14,356
913
1,148
11,566
549
2,970
6
511
446
94
4,756
476
4,445
342
306
4,220
2,158

58,275
1,919
18,815
639
1,345
13,842
539
2,950
8
352
416
141
5,332
440
4,723
354
284
4,178
1,997

59,987
1,800
19,984
806
1,357
14,842
526
2,838
7
390
410
142
4,937
495
4,889
333
334
3,922
1,975

44 A sia..................................................................................

30,488

36,492

33,005

42,420

41,649

42,721

44,700'

44,777

45,677

45,899

67
502
1,256
790
449
688
21,927
795
644
427
7,534
1,414

49
1,393
1,672
527
504
707
8,907
993
795
277
15,300
1,879

49
1,662
2,548
416
730
883
16,281
1,528
919
464
14,453
2,487

55
1,821
2,764
437
1,170
523
17,701
1,498
849
367
12,216
2,249

55
1,733
3,054
604
678
557
17,990
1,485
1,057
404
12,695
2,409

60
1,822
2,440
576
1,063
582'
19,367'
1,380 '
1,115
250
13,913'
2,132'

60
1,822
2,438
576
1,063
582
19,442
1,380
1,115
250
13,913
2,134

46
1,799
2,470
442
944
444
19,450
1,381
1,213
391
14,845
2,252

54
1,781
3,002
458
706
397
19,833
1,397
802
338
14,445
2,686

China
45
46
47
48
49
50
51
52
53
54
55
56

T aiw an....................................................................
Hong Kong..................................................................
India............................................................................
Indonesia....................................................................
Israel ............................................................................
Japan............................................................................
K orea..........................................................................
Philippines..................................................................
Thailand......................................................................
Middle-East oil-exporting countries4 ......................
Other A sia..................................................................

53
1,013
1,094
961
410
559
14,616
602
687
264
8,979
1,250

57
58
59
60
61
62
63

Egypt............................................................................
M orocco......................................................................
South Africa................................ ...............................
Z aire............................................................................
Oil-exporting countries5............................................
Other A frica ..............................................................

2,535
404
66
174
39
1,155
698

2,886
404
32
168
43
1,525
715

3,239
475
33
184
110
1,635
804

5,187
485
33
288
57
3,540
783

4,358
313
42
327
48
2,921
707

4,371
496
30
258
58
2,833
697

4,553
333
33
322
28
3,084
753

4,553
333
33
322
28
3,084
753

4,529
336
34
330
28
3,135
666

4,513
308
119
336
24
2,962
764

64 Other countries..............................................................
Australia......................................................................
65
66
All other......................................................................

1,297
1,140
158

1,076
838
239

904
684
220

1,247
950
297

1,658
1,304
354

1,513
1,205
307

1,526
1,287
240

1,526
1,287
240

2,293
2,018
275

2,487
2,286
201

67 Nonmonetary international and regional
organizations..........................................................
68
International..............................................................
69
Latin American regional..........................................
70
Other regional6 ..........................................................

3,274
2,752
278
245

2,607
1,485
808
314

2,356
1,238
806
313

2,342
1,156
890
296

1,961
913
769
279

2,003
995
745
263

1,854'
754
768
333'

1,854
754
768
333

1,804
795
693
317

1,803
771
729
303

Mainland.........................................................................

1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem­
ocratic Republic, Hungary, Poland, and Romania.
3. Included in “Other Latin America and Caribbean” through March 1978.




4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Asian, African, Middle Eastern, and European regional organizations, except
the Bank for International Settlements, which is included in “Other Western
Europe.”
A Data in the two columns for this date differ because of changes in reporting
coverage. Figures in the first column are comparable in coverage with those for
the preceding month; figures in the second column are comparable with those for
the following month.

Bank-Reported Data
3.17

A59

BANKS’ OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1981
Area and country

1977

1978

1979

1980
Jan.

Feb.

Mar.A

Apr.

Mayp

1

90,206

115,545

133,943

172,702

167,338

167,687 r

179,535 r

181,551

184,451

185,827

2 Foreign countries........................................................

90,163

115,488

133,906

172,624

167,266

167,608 r

179,461r

181,477

184,382

185,751

3 E urope........................ ....................................................
A ustria........................................................................
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 Europe1............................................
22
U .S.S.R........................................................................
Other Eastern Europe2 ............................................
23

18,114
65
561
173
172
2,082
644
206
1,334
338
162
175
722
218
564
360
8,964
311
86
413
566

24,201
140
1,200
254
305
3,735
845
164
1,523
677
299
171
1,120
537
1,283
300
10,147
363
122
360
657

28,388
284
1,339
147
202
3,322
1,179
154
1,631
514
276
330
1,051
542
1,165
149
13,795
611
175
268
1,254

32,155
236
1,621
127
460
2,958
■948
256
3,364
575
227
331
993
783
1,446
145
14,917
853
179
281
1,457

30,768
191
2,140
172
337
3,067
1,028
244
3,105
523
224
240
1,152
733
1,729
155
12,949
859
177
249
1,494

34,136'
174
2,568
119
319'
3,838'
1,074
210
3,052'
548
223
247
1,494
868
1,313'
136'
15,093'
871
176
265
1,548

35,098
174
2,573
119
326
3,911
1,122
210
3,055
560
223
247
1,497
884
1,375
136
15,827
872
176
265
1,548

34,176
151
2,155
141
324
3,696
1,038
334
2,926
530
180
242
1,601
975
1,263
132
15,565
878
211
266
1,569

34,230
149
2,023
162
299
3,166
1,140
242
2,976
584
173
263
1,715
988
1,693
172
15,643
904
147
254
1,538

4

30,657
249
1,739
129
322
2,716
993r
264
3,168
642
294
299
1,131
688
1,753
146
13,175
863
347
249
1,490

24 Canada ............................................................................

3,355

5,152

4,143

4,810

4,221

4,872

5,017'

5,297

6,147

5,837

25 Latin America and Caribbean....................................
26
Argentina....................................................................
27
Bahamas......................................................................
28
Bermuda......................................................................
29
Brazil............................................................................
30
British West Indies....................................................
31
C hile............................................................................
32
Colombia....................................................................
33
C uba............................................................................
34
Ecuador ......................................................................
Guatemala3 ................................................................
35
36
Jamaica3 ......................................................................
37
M exico........................................................................
Netherlands Antilles..................................................
38
39
Panama........................................................................
40
Peru..............................................................................
41
Uruguay ......................................................................
42
Venezuela....................................................................
Other Latin America and Caribbean....................
43

45,850
1,478
19,858
232
4,629
6,481
675
671
10
517
4,909
224
1,410
962
80
2,318
1,394

57,565
2,281
21,555
184
6,251
9,694
970
1,012
0
705
94
40
5,479
273
3,098
918
52
3,474
1,485

67,993
4,389
18,918
496
7,713
9,818
1,441
1,614
4
1,025
134
47
9,099
248
6,041
652
105
4,657
1,593

92,992
5,689
29,419
218
10,496
15,663
1,951
1,752
3
1,190
137
36
12,595
821
4,974
890
137
5,438
1,583

90,792
5,642
28,358
267
10,260
14,546
1,862
1,665
4
1,222
114
33
12,687
835
5,033
912
111
5,515
1,728

89,625'
5,636
28,642'
364
9,801
14,338
1,843
1,435
3
1,179
113
41
12,460
655
4,964
877
107
5,514
1,653

96,364'
5,672
34,139'
324'
10,213'
14,236'
1,876'
1,467
3
1,257
208
77
12,407'
807
5,640
794'
103
5,441
1,702

96,829
5,672
34,285
324
10,269
14,320
1,876
1,467
3
1,257
208
77
12,447
921
5,643
794
103
5,458
1,705

98,334
5,881
33,873
389
9,924
15,937
2,028
1,457
4
1,229
98
34
13,242
809
5,489
853
105
5,325
1,658

99,158
5,635
32,894
481
9,916
16,892
2,019
1,580
3
1,237
106
35
13,409
956
5,848
871
100
5,433
1,742

44

19,236

25,362

30,730

39,140

38,564'

39,113'

40,636'

40,941

42,415

42,950

China
Mainland..................................................................
T aiw an....................................................................
Hong Kong..................................................................
India............................................................................
Indonesia....................................................................
Israel............................................................................
Japan............................................................................
K orea..........................................................................
Philippines..................................................................
Thailand......................................................................
Middle East oil-exporting countries4......................
Other A sia..................................................................

10
1,719
543
53
232
584
9,839
2,336
594
633
1,746
947

4
1,499
1,479
54
143
888
12,646
2,282
680
758
3,125
1,804

35
1,821
1,804
92
131
990
16,911
3,793
737
933
1,548
1,934

195
2,469
2,247
142
245
1,172
21,361
5,697
989
876
1,494
2,252

225
2,415
2,250
110
280
1,081
21,187
5,904
840
810
1,435
2,026

186
2,270
2,212
142
306
829
22,314'
5,936
745
808
1,443
1,922

201
2,413'
2,330
127
288
944
23,710
5,823'
605
835
1,486
1,874

201
2,413
2,330
127
288
981
23,977
5,823
605
835
1,486
1,874

202
2,568
2,476
134
299
1,014
23,850
6,024
992
829
1,909
2,120

204
2,413
2,896
170
268
1,185
24,225
6,014
1,024
698
1,458
2,396

57 A frica..............................................................................
58
Egypt............................................................................
59
Morocco......................................................................
South Africa................................................................
60
61
Z aire............................................................................
Oil-exporting countries5............................................
62
63
Other............................................................................

2,518
119
43
1,066
98
510
682

2,221
107
82
860
164
452
556

1,797
114
103
445
144
391
600

2,377
151
223
370
94
805
734

1,910
175
186
337
96
410
707

1,981
152
115
421
94
425
773

2,271
137
153
534
111
589
746

2,271
137
153
534
111
589
746

2,272
124
118
562
108
650
710

2,536
126
87
668
98
805
751

64 Other countries..............................................................
65
Australia......................................................................
All other......................................................................
66

1,090
905
186

988
877
111

855
673
182

1,150
859
290

1,122
827
295

1,250
868
381

1,038'
870
167'

1,041
874
167

1,038
922
116

1,040
898
142

67 Nonmonetary international and regional
organizations6 ........................................................

43

56

36

78

72

79

74

69

76

45
46
47
48
49
50
51
52
53
54
55
56

1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem­
ocratic Republic, Hungary, Poland, and Romania.
3. Included in “Other Latin America and Caribbean” through March 1978.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).




74

5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in “Other
Western Europe.”
A Data in the two columns shown for this date differ because of changes in
reporting coverage. Figures in the first column are comparable in coverage with
those for the preceding month; figures in the second column are comparable with
those for the following month.
N o te . Data for period prior to April 1978 include claims of banks’ domestic
customers on foreigners.

A60
3.18

International Statistics □ July 1981
BANKS’ OWN AND DOMESTIC CUSTOMERS’ CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period
1981
Type of claim

1980

1978

Mar.^

Feb.

1 Total.....................................................................

4 Own foreign offices1................................................
5 Unaffiliated foreign banks......................................
6
D eposits................................................................
7 Other......................................................................
8 All other foreigners................................................

9 Claims of banks’ domestic customers2 ................
10 D eposits....................................................................
11 Negotiable and readily transferable instruments3
12 Outstanding collections and other claims4 ..........

13 Memo: Customer liability on acceptances..........
Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United
States5......................................................................

6,176

126,787

154,030

198,807

115,545
10,346
41,605
40,483
5,428
35,054
23,111

90,206

2 Banks’ own claims on foreigners..........................
3 Foreign public borrowers........................................

133,943
15,937
47,428
40,927
6,274
34,654
29,650

172,702
20,944
65,084
50,215
8,254
41,962
36,459

11,243
480
5,396
5,366

20,088
955
13,100
6,032

26,106
885
15,574
9,648

15,030

18,021

13,162

21,578

1. U.S. banks: includes amounts due from own foreign branches and foreign
subsidiaries consolidated in “Consolidated Report of Condition” filed with bank
regulatory agencies. Agencies, branches, and m ajority-owned subsidiaries o f foreign
banks: principally amounts due from head office or parent foreign bank, and foreign
branches, agencies, or wholly owned subsidiaries of head office or parent foreign
bank.
2. Assets owned by customers of the reporting bank located in the United States
that represent claims on foreigners held by reporting banks for the account of their
domestic customers.
3. Principally negotiable time certificates of deposit and bankers acceptances.

Apr.

28,318

30,812

181,551
21,027
74,717
48,104
8,205
39,898
37,703

184,451
21,316
76,483
48,524
7,668
40,857
38,128

185,827
21,038
75,020
51,110
9,439
41,671
38,660

213,220

31,052
369
19,930
10,752

167,687‘
20,3211
64,798'
45,880'
7,079
38,800'
36,689'

179,535r
20,836r
74,660r
46,502r
7,263
39,239r
37,537r

31,669
852
20,064
10,753

24,452

23,644

210,586r
167,338
20,969
64,002
46,350
7,261
39,089
36,017

MayP

24,452

30,142

33,790

4. Data for March 1978 and for period prior to that are outstanding collections
only.
5. Includes demand and time deposits and negotiable and nonnegotiable certif­
icates of deposit denominated in U.S. dollars issued by banks abroad. For descrip­
tion of changes in data reported by nonbanks, see July 1979 B u ll e t i n , p. 550.
^ D ata in the two columns for this month differ because of changes in reporting
coverage. Figures in the first column are comparable in coverage with those shown
for the preceding month; figures in the second column are comparable with those
shown for the following month.
N o te . Beginning April 1978, data for banks’ own claims are given on a monthly
basis, but the data for claims of banks’ own domestic customers are available on
a quarterly basis only.

3.19 BANKS’ OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1978

1979

Dec.

Dec.

1980

1981

Maturity; by borrower and area

1 Total.........................................................................................................

June

Sept.

Dec.

Mar.A

73,635

86,181

93,260

99,022

106,857

104,789

106,513

58,345
4,633
53,712
15,289
5,395
9,894

65,152
7,233
57,919
21,030
8,371
12,659

71,938
7,227
64,711
21,322
8,673
12,649

76,231
8,935
67,296
22,791
9,722
13,069

82,665
10,036
72,628
24,193
10,152
14,041

80,855
10,519
70,336
23,934
10,158
13,775

82,636
10,630
72,005
23,877
10,244
13,634

15,169
2,670
20,895
17,545
1,496
569

15,235
1,777
24,928
21,641
1,077
493

17,215
2,047
24,460
26,162
1,330
724

16,940
2,166
28,097
26,876
1,401
751

18,762
2,723
32,034
26,748
1,757
640

17,306
2,358
30,844
28,001
1,624
722

18,261
2,621
31,096
28,305
1,624
729

3,142
1,426
8,464
1,407
637
214

4,160
1,317
12,814
1,911
655
173

4,033
1,199
13,887
1,477
576
150

4,705
1,188
14,187
2,014
567
130

5,118
1,448
15,075
1,865
507
179

5,698
1,184
14,768
1,585
531
168

5,578
1,200
14,870
1,530
531
167

By borrower
2 Maturity of 1 year or less1............................................................................

3

4
5
6
7

Foreign public borrowers..........................................................................
All other foreigners..................................................................................
Maturity of over 1 year1 ..............................................................................
Foreign public borrowers..........................................................................
All other foreigners..................................................................................
By area

8
9
10
11
12
13

Maturity of 1 year or less1
E urope........................................................................................................
Canada ........................................................................................................
Latin America and Caribbean................................................................
A sia..............................................................................................................
A frica..........................................................................................................
All other2 ....................................................................................................
Maturity of over 1 year1

15
16
17
18
19

Canada ........................................................................................................
Latin America and Caribbean................................................................
A sia..............................................................................................................
A frica..........................................................................................................
All other2 ....................................................................................................

1. Remaining time to maturity.
2. Includes nonmonetary international and regional organizations.
A Data in the two columns for this month differ because of changes in reporting
coverage. Figures in the first column are comparable in coverage with those for
the preceding quarter; figures in the second column are comparable with those for
the following quarter.




Bank-Reported Data
3.20

A61

CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banksi
Billions of dollars, end of period
1979
Area or country

1977

1980

1981

19782
Mar.

June

Sept.

Dec.

Mar.

June

Sept.

Dec.

Mar.p

1 T otal........................................................................................................

240.0

266.2

263.9

275.6

294.0

303.8

308.5

328.5

338.7

350.1

363.8

2 G-10 countries and Switzerland..........................................................
3 Belgium-Luxembourg........................................................................
4 France.................................... .............................................................
5 Germany..............................................................................................
6
7 Netherlands........................................................................................
8 Sweden................................................................................................
9 Switzerland..........................................................................................
10 United Kingdom................................................................................
11
Canada ................................................................................................
12 Japan....................................................................................................

116.4
8.4
11.0
9.6
6.5
3.5
1.9
3.6
46.5
6.4
18.8

124.7
9.0
12.2
11.3
6.7
4.4
2.1
5.3
47.3
6.0
20.6

119.0
9.4
11.7
10.5
5.7
3.9
2.0
4.5
46.4
5.9
19.0

125.2
9.7
12.7
10.8
6.1
4.0
2.0
4.7
50.3
5.5
19.5

135.7
10.7
12.0
12.8
6.1
4.7
2.3
5.0
53.7
6.0
22.3

138.4
11.1
11.7
12.2
6.4
4.8
2.4
4.7
56.4
6.3
22.4

141.2
10.8
12.0
11.4
6.2
4.3
2.4
4.3
57.6
6.9
25.4

154.2
13.1
14.0
12.7
6.9
4.5
2.7
3.3
64.3
7.2
25.5

158.7
13.5
13.9
12.9
7.2
4.4
2.8
3.4
66.6
7.7
26.1

161.5
12.9
14.0
11.5
8.2
4.4
2.9
4.0
68.7
8.4
26.5

165.5
13.4
14.3
12.3
7.6
4.5
3.2
4.0
68.2
8.5
29.4

13 Other developed countries..................................................................
14 Austria................................................................................................
15 Denmark..............................................................................................
16 Finland................................................................................................
17 Greece..................................................................................................
18 Norway................................................................................................
19 Portugal..............................................................................................
20 Spain....................................................................................................
21
Turkey..................................................................................................
22
Other Western E u rop e....................................................................
23
South Africa........................................................................................
24 Australia..............................................................................................

18.6
1.3
1.6
1.2
2.2
1.9
.6
3.6
1.5
.9
2.4
1.4

19.4
1.7
2.0
1.2
2.3
2.1
.6
3.5
1.5
1.3
2.0
1.4

18.2
1.7
2.0
1.2
2.3
2.1
.6
3.0
1.4
1.1
1.7
1.3

18.2
1.8
1.9
1.1
2.2
2.1
.5
3.0
1.4
.9
1.8
1.4

19.7
2.0
2.0
1.2
2.3
2.3
.7
3.3
1.4
1.5
1.7
1.3

19.9
2.0
2.2
1.2
2.4
2.3
.7
3.5
1.4
1.4
1.3
1.3

18.8
1.7
2.1
1.1
2.4
2.4
.6
3.5
1.4
1.4
1.1
1.2

20.3
1.8
2.2
1.3
2.5
2.4
.6
3.9
1.4
1.6
1.5
1.2

20.6
1.8
2.2
1.2
2.6
2.4
.7
4.2
1.3
1.7
1.2
1.2

21.1
1.9
2.2
1.4
2.8
2.6
.6
4.0
1.5
1.7
1.1
1.3

23.0
1.8
2.4
1.3
2.8
2.8
.6
5.1
1.5
1.8
1.5
1.4

25 OPEC countries3....................................................................................
26 Ecuador ..............................................................................................
27 Venezuela............................................................................................
28 Indonesia............................................................................................
29 Middle East countries......................................................................
30 African countries................................................................................

17.6
1.1
5.5
2.2
6.9
1.9

22.7
1.6
7.2
2.0
9.5
2.5

22.6
1.5
7.2
1.9
9.4
2.6

22.7
1.6
7.6
1.9
9.0
2.6

23.4
1.6
7.9
1.9
9.2
2.8

22.9
1.7
8.7
1.9
8.0
2.6

21.8
1.8
7.9
1.9
7.8
2.5

20.9
1.8
7.9
1.9
6.9
2.5

21.3
1.9
8.5
1.9
6.6
2.4

22.8
2.1
9.1
1.8
6.9
2.8

21.4
2.0
8.3
2.0
6.4
2.6

31 Non-OPEC developing countries........................................................

48.7

52.6

53.9

56.0

58.9

62.9

63.7

67.4

72.8

76.9

80.5

2.9
12.7
.9
1.3
11.9
1.9
2.6

3.0
14.9
1.6
1.4
10.8
1.7
3.6

3.1
14.9
1.7
1.5
10.9
1.6
3.5

3.5
15.1
1.8
1.5
10.7
1.4
3.3

4.1
15.1
2.2
1.7
11.4
1.4
3.6

5.0
15.2
2.5
2.2
12.0
1.5
3.7

5.5
15.0
2.5
2.1
12.1
1.3
3.6

5.6
15.3
2.7
2.2
13.6
1.4
3.6

7.6
15.8
3.2
2.4
14.4
1.5
3.9

7.9
16.2
3.5
2.6
15.9
1.8
3.9

8.5
16.7
4.0
2.4
17.0
1.8
4.8

.0
3.1
.3
.9
3.9
.7
2.5
1.1
.4

.0
2.9
.2
1.0
3.9
.6
2.8
1.2
.2

.1
3.1
.2
1.0
4.2
.6
3.2
1.2
.4

.1
3.3
.2
.9
5.0
.7
3.7
1.4
.4

.1
3.5
.2
1.0
5.3
.7
3.7
1.6
.4

.1
3.4
.2
1.3
5.4
.9
4.2
1.5
.5

.1
3.6
.2
.9
6.4
.8
4.4
1.4
.5

.1
3.8
.2
1.2
7.1
.9
4.6
1.5
.5

.1
4.1

.2
4.4
.3
1.3
7.7
1.0
4.7
1.4

'.5

.2
4.2
.3
1.5
7.1
1.0
5.0
1.4
.6

Egypt.................................................................................. .................
Morocco..............................................................................................
Z aire....................................................................................................
Other Africa*......................................................................................

.3
.5
.3
.7

.4
.6
.2
1.4

.5
.6
.2
1.4

.7
.5
.2
1.5

.6
.5
.2
1.6

.6
.6
.2
1.7

.7
.5
.2
1.7

.7
.5
.2
1.8

.7
.6
.2
2.0

.8
.7
.2
2.0

.8
.6
.4
2.1

52 Eastern Europe......................................................................................
53
U.S.S.R................................................................................................
54
Yugoslavia..........................................................................................
55
Other....................................................................................................

6.3
1.6
1.1
3.7

6.9
1.3
1.5
4.1

6.7
1.1
1.6
4.0

6.7
.9
1.7
4.1

7.2
.9
1.8
4.6

7.3
.7
1.8
4.8

7.3
.6
1.9
4.9

7.2
.5
2.1
4.5

7.3
.5
2.1
4.7

7.5
.4
2.3
4.7

8.0
.4
2.4
5.1

56 Offshore banking centers......................................................................
57
Bahamas..............................................................................................
58 Bermuda..............................................................................................
59 Cayman Islands and other British West Indies............................
60 Netherlands Antilles..........................................................................
61
Panama6 ..............................................................................................
62 Lebanon ..............................................................................................
63 Hong Kong..........................................................................................
64
Singapore............................................................................................
65
Others7 ................................................................................................

26.1
9.9
.6
3.7
.7
3.1
.2
3.7
3.7
.5

31.0
10.4
.7
7.4
.8
3.0
.1
4.2
3.9
.5

33.7
12.3
.6
7.1
.8
3.5
.1
4.8
4.2
.4

37.0
14.4
.7
7.4
1.0
3.8
.1
4.9
4.2
.4

38.6
13.0
.7
9.5
1.1
3.4
.2
5.5
4.9
.4

40.4
13.7
.8
9.4
1.2
4.3
.2
6.0
4.5
.4

42.6
13.9
.6
11.3
.9
4.9
.2
5.7
4.7
.4

44.2
13.7
.6
9.8
1.2
5.6
.2
6.9
5.9
.4

44.5
13.1
.6
10.1
1.3
5.6
.2
7.5
5.6
.4

46.5
13.3
.6
10.6
2.1
5.4
.2
8.1
5.9
.3

50.7
13.6
.7
11.3
2.1
6.4
.2
8.4
7.2
.9

66 Miscellaneous and unallocated^..........................................................

5.3

9.1

9.5

9.9

10.6

11.7

13.1

14.3

13.7

13.9

14.8

Latin Am erica

32
33
34
35
36
37
38

Argentina............................................................................................
Brazil....................................................................................................
C hile....................................................................................................
C olombia............................................................................................
M exico................................................................................................
Other Latin America........................................................................
Asia

39
40
41
42
43
44
45
46
47

China
Mainland..........................................................................................
Taiwan ............................................................................................
Ind ia....................................................................................................
Israel...................................... .............................................................
Korea (South)....................................................................................
Malaysia4 ............................................................................................
Philippines..........................................................................................
Thailand..............................................................................................
Other A sia..........................................................................................

l.’l
7.3

.4

Africa

48
49
50
51

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 ad­
justed to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.13 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.17 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches). However,
see also footnote 2.
2. Beginning with data for June 1978, the claims of the U.S. offices
in this table include only banks’ own claims payable in dollars. For earlier dates




the claims of the U.S. offices also include customer claims and foreign currency
claims (amounting in June 1978 to $10 billion).
3. In addition to the Organization of Petroleum Exporting Countries shown
individually, this group includes other members of OPEC (Algeria, Gabon, Iran,
Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as
well as Bahrain and Oman (not formally members of OPEC).
4. Foreign branch claims only through December 1976.
5. Excludes Liberia.
6. Includes Canal Zone beginning December 1979.
7. Foreign branch claims only.
8. Includes New Zealand, Liberia, and international and regional organizations.

A62
3.21

International Statistics □ July 1981
MARKETABLE U.S. TREASURY BONDS AND NOTES
Millions of dollars

Foreign Holdings and Transactions

1980

1981
Country or area

1979

1981

1980
JanMayp

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

Mayp

Holdings (end of period)1

1 Estimated total2.......................................

51,344

57,418

57,222

57,418

2 Foreign countries2......................................

45,915

52,831

52,872

52,831

55,655

56,840

57,352'

58,039

3 Europe2....................................................
4 Belgium-Luxembourg............................
5 Germany2 ................................................

9
10
11
12

24,337
77
12,335
1,884
595
1,485
7,183
111

24,711
74
12,758
1,777
614
1,489
7,414
584

24,337
77
12,335
1,884
595
1,485
7,183
111

25.466

Netherlands............................................
Sweden....................................................
Switzerland2 ............................................
United Kingdom....................................
Other Western E u rop e........................
Eastern Europe......................................
Canada........................................................

24,824
60
14,056
1,466
647
1,868
6,236
491
0
232

12,915
1,944
535
1,524
7,745
714

25,235
106
12,340
1,965
566
1,527
7,892
839

24,883
123
11,925
1,950
567
1,526
7,862
930

24,511
131
11,949
1,813
572
1,535
7,274
1,236

0
449

532

449

458

490

478

464

486

13
14
15
16
17
18
19
20

Latin America and Caribbean................
Venezuela................................................
Other Latin America and Caribbean .
Netherlands Antilles..............................
A sia..............................................................
Japan........................................................
A frica..........................................................
All other......................................................

466
103
200
163
19,805
11,175
591
-3

999
292
285
421
26,112
9,479
920
14

942
292
278
372
25,968
9,547
715
4

999
292
285
421
26,112
9,479
920
14

998
292
281
425
26,303
9,519
970
14

1,074
292
341
441
27.467
9,543
1,139
18

1,151
292
339
519
28,827
9,543
1,140
9

939
292
389
258

849
287
430
132
31,047
9,606
1,140

6

7
8

0

62,124'

88

0

0

0

0

2 9,920r

9,566
1,140
7

62,837

0

6

21 Nonmonetary international and regional
organizations......................................

22
23

5,429

4,587

4,350

4,587

4,534

4,622

4,920 '

4,772r

4,798

International..........................................
Latin American regional......................

5,388
37

4,548
36

4,302
44

4,548
36

4,505
26

4,586
36

4,878'
36

4,759'

4,791

6

1

Transactions (net purchases, or sales ( - ) during period)
24 Total2............................................................

6,397

25 Foreign countries2......................................
26
Official institutions................................
27
Other foreign2 ........................................

6,099
1,697
4,403

6,916
3,840
3,076

5,208
4.169
1,038

791
301
490

-4 1
-3 3 6
295

1,088
865
223

28 Nonmonetary international and regional
organizations......................................

301

-8 4 3

211

-126

237

-5 3

4,665
220

561
29

358
205

300
51

5,418

1,035

1,480'
1,736
1,404
332

364'

713

1,185
1,084

512r
495'
17'

686

101

-1 4 8

321
365
26

Memo: Oil-exporting countries

29 Middle East3 ..............................................
30 Africa4..........................................................

-1,014
-1 0 0

7,672'
328

1,139
169

1,322

0

1,062'

0

841

0

2. Beginning December 1978, includes U.S. Treasury notes publicly issued to
private foreign residents denominated in foreign currencies.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.

1. Estimated official and private holdings of marketable U.S. Treasury securities
with an original maturity of more than 1 year. Data are based on a benchmark
survey of holdings as of Jan. 31, 1971, and monthly transactions reports. Excludes
nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign
countries.

3.22 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1980
Assets

1978

1979

Dec.
1 D eposits..........................................................................

1981

1980
Jan.

Feb.

Mar.

Apr.

May

Junep

367

429

411

411

573

422

474

475

346

338

117,126
15,463

95,075
15,169

102,417
14,965

102,417
14,965

104,490
14,893

106,389
14,892

111,859
14,883

113,746
14,886

109,742
14,875

107,884
14,871

Assets held in custody
2 U.S. Treasury securities1..............................................

3 Earmarked gold2............................................................

1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
2. The value of earmarked gold increased because of the changes in par value
of the U.S. dollar in May 1972 and in October 1973.




N o te . Excludes deposits and U.S. Treasury securities held for international and
regional organizations. Earmarked gold is gold held for foreign and international
accounts and is not included in the gold stock of the United States,

Investment Transactions
3.23

A63

FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1981

Transactions, and area or country

1980

1981

1980

1979

Jan.May

Nov.

Jan.

Dec.

Feb.

Mar.

2,718c
2,312

3,948
3,313

MayP

Apr.

U.S. corporate securities
Stocks

1 Foreign purchases.......................................................
2 Foreign sales..............................................................

22,781
21,123

40,320
34,962

18,200
14,599

4,457
3,588

4,345
3,701

3,422
2,798

4,041
3,323

4,071
2,852

3 Net purchases, or sales ( - ) .......................................

1,658

5,358

3,601

869

644

624

406

634

718

1,219

4 Foreign countries........................................................

1,642

5,340

3,562

867

623

612

403

626

710

1,210

5 Europe.......................................................................
6 France ......................................................................

Germany..................................................................
Netherlands............................................................
Switzerland..............................................................
United Kingdom.....................................................
Canada .......................................................................
Latin America and Caribbean..................................
Middle East*..............................................................
Other Asia..................................................................
Africa.........................................................................
Other countries..........................................................

217
122
-221
-7 1
-5 1 9
964
552
-1 9
688
211
-1 4
7

3,069
482
186
-3 2 8
308
2,503
865
148
1,206
16
-1
38

2,487
731
72
85
377
1,119
588
74
354
64
3
-8

633
109
121
-5 8
265
251
263
57
-1 0 9
18
0
5

254
60
8
-1 7
-8 8
300
247
-8
177
-4 9
-2
2

438
62
24
43
105
178
26
101
63
-1 4
2
-5

257
41
18
2
-2 4
220
91
-2 2
74
-2
0
7

605
110
31
12
138
308
103
14
-9 5
0
-1
0

419
126
15
-2
75
197
230
-2 6
91
3
-1
-5

767
393
-1 7
31
83
217
138
8
221
78
1
-4

17 Nonmonetary international and regional
organizations..........................................................

17

18

39

2

22

12

8

8

10

18 Foreign purchases......................................................
19 Foreign sales..............................................................

8,835
7,602

15,425
9,976

7,430
4,362

1,193
902

946
826

1,549
817

1,402
863

2,035 r
1,239'

1,549
774

894
669

20 Net purchases, or sales ( —) ..........................................

1,233

5,449

3,068

291

121

733

539

769 r

775

225

21 Foreign countries............................................................

1,330

5,514

3,031

295

107

706

552

797

733

243

Europe.......................................................................
France......................................................................
Germany..................................................................
Netherlands............................................................
Switzerland..............................................................
United Kingdom.....................................................
Canada........................................................................
Latin America and Caribbean..................................
Middle East1 ..............................................................
Other Asia..................................................................
Africa.........................................................................
Other countries..........................................................

626
11
58
-2 0 2
-1 1 8
814
80
109
424
88
1
1

1,576
129
213
-6 5
54
1,257
135
185
3,486
117
5
10

982
-4
308
49
89
452
54
82
1,969
-5 3
0
-4

163
12
13
-7
8
166
21
11
105
-3
0
-1

-2 6
12
22
17
14
-1 1 3
-7
-5
113
32
0
0

214
4
49
6
22
124
7
-3
492
-1
0
-4

311
-4 2
112
12
12
207
-2
26
201
17
0
0

132
9
97
14
4
-2 2
19
28
723
-1 0 5
0
0

328
8
23
13
17
231
12
22
362
9
0
0

-3
17
28
4
34
-8 7
18
9
192
27
0
0

34 Nonmonetary international and regional
organizations..........................................................

-9 6

-6 5

37

-4

14

27

-1 3

42

-1 8

7
8
9
10
11
12
13
14
15
16

2

B onds 2

22
23
24
25
26
27
28
29
30
31
32
33

-1 r

Foreign securities

35 Stocks, net purchases, or sales ( - ) ..........................
36 Foreign purchases...................................................
37 Foreign sales..........................................................

-7 8 6
4,615
5,401

-2,084
7,885
9,968

-1 9 8
3,871
4,069

129
927
798

-6 8
721
788

35
696
661

13
709
697

-1 8 7
763
950

-9 0
851
941

32
852
820

38 Bonds, net purchases, or sales ( - ) ..........................
39 Foreign purchases...................................................
40
Foreign sales..........................................................

-3,855
12,672
16,527

-8 4 6
17,069
17,915

-1,1 5 9
6,565
7,724

92
1,254
1,161

274
1,786
1,512

-2 3 7
1,142
1,379

29
1,296
1,267

-1 4 1
1,686
1,827

-6 3 2
1,154
1,786

-1 7 8
1,287
1,465

41 Net purchases, or sales ( —), of stocks and bonds . . .

-4,641

-2,929

-1,357

221

206

-202

42

-328

-723

-146

42 Foreign countries............................................................
43 Europe.......................................................................

-3,891

-3,806

-1,454

198

-177

-261

24

-340

-732

-146

44 Canada .......................................................................
45 Latin America and Caribbean..................................
46 Asia........................................... .................................
47 Africa.........................................................................
48 Other countries..........................................................

-1,646
-2,601
347
44
-6 1
25

-9 5 7
-1,948
126
-1,131
24
80

-4 2 0
-6 7 0
102
-3 9 7
-4 4
-2 4

-30
329
-2 4
-7 3
-1
-3

-8 6
24
-1 1
-8 4
-1 3
-7

-1 1 6
-4
51
-1 7 7
-1 0
-4

80
76
52
-1 6 9
-8
-7

-1 6 1
-1 0 1
-6 8
9
-1 7
-2

-3 0 0
-2 7 1
119
-234
-7
-3 9

77
-3 7 0
-5 1
173
-3
28

49 Nonmonetary international and regional
organizations..........................................................

-750

876

97

23

383

59

17

12

9

0

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 securities sold
abroad by U.S. corporations organized to finance direct investments abroad.

A64
3.24

International Statistics □ July 1981
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions of dollars, end of period
1979
Type, and area or country

1980

1979

1978

Sept.

Dec.

Mar.

June

Sept.

Dec.p

1 Total.......................................................................................................

14,948 r

17,062 r

15,782r

17,062r

17,476 '

18,643 r

18,634r

21,064

2 Payable in dollars........................................................................................
3 Payable in foreign currencies2 ..................................................................

11,513'
3,435'

13,984'
3,078'

12,699'
3,082'

13,984'
3,078'

14,470'
3,006'

15,203'
3,440'

15,337'
3,296'

17,445
3,619

4 Financial liabilities......................................................................................
5
Payable in dollars....................................................................................
6
Payable in foreign currencies................................................................

6,353'
3,838'
2,515'

7,336'
5,096'
2,270'

6,196'
3,883'
2,313'

7,336'
5,096'
2,270'

7,832'
5,591'
2,242'

8,410'
5,791'
2,619'

8,293'
5,818'
2,475'

10,844
8,140
2,703

7 Commercial liabilities................................................................................
8 Trade payables........................................................................................
9 Advance receipts and other liabilities..................................................

8,595'
4,008
4,587'

9,696'
4,424'
5,272'

9,585'
4,051
5,535'

9,696'
4,424'
5,272'

9,693'
4,190'
5,454'

10,233'
4,297'
5,936'

10,341'
4,381'
5,960

10,221
4,401
5,820

7,674'
921'

8,888'
808

8,817'
769'

808

O
O
00

8,879'
764'

9,412'
821'

9,520'
821

9,305
916

3,958'
289
173'
366
390
248
2,159'

4,642'
345
175'
497
828
170
2,449'

3,776'
317
132'
381
542
190
2,014'

4,642'
345
175'
497
828
170
2,449'

4,860'
360
193'
520
795
174
2,647'

5,470'
422
347'
657
797'
238
2,841'

5,314
417'
339'
557
780'
224
2,867'

6,276
464
327
582
662
354
3,753

By type

Payable in dollars....................................................................................
Payable in foreign currencies................................................................

12
13
14
15
16
17
18

Financial liabilities
Europe......................................................................................................
Belgium-Luxembourg........................................................................
France....................................................................................................
Germany..............................................................................................
Netherlands..........................................................................................
Switzerland..........................................................................................
United Kingdom..................................................................................

00
0
0

10
11

oO
O

By area or country

756

1,732'
412
1
20
703'
108
74

3,068
945
1
23
1,442
98
81

752'
683'
31

707'
618'
37

718
644
38

11
1

10
1

11
1

11
1

10

15

21

15

19

Canada......................................................................................................

244

20
21
22
23
24
25
26

Latin America and Caribbean..............................................................
Bahamas................................................................................................
Berm uda..............................................................................................
B razil....................................................................................................
British West Indies..............................................................................
M exico..................................................................................................
V enezuela............................................................................................

1,357
478
4
10
194
102
49

27
28
29

Asia............................................................................................................
Japan ....................................................................................................
Middle East oil-exporting countries3 ..............................................

784'
717'
32

793'
726'
31

759'
702'
19

793'
726'
31

807'
740'
26

30
31

Africa........................................................................................................
Oil-exporting countries4 ....................................................................

5
2

4
1

5
1

4
1

32

All other5..................................................................................................

5

4

5

4

33
34
35
36
37
38
39

Commercial liabilities
Europe......................................................................................................
Belgium-Luxembourg........................................................................
France....................................................................................................
Germany..............................................................................................
Netherlands..........................................................................................
Switzerland..........................................................................................
United Kingdom..................................................................................

40

Canada............................................ .........................................................

667

868

717

868

720

591

590

784

41
42
43
44
45
46
47

Latin America..........................................................................................
Bahamas................................................................................................
Berm uda..............................................................................................
B razil....................................................................................................
British West Indies..............................................................................
M exico..................................................................................................
Venezuela............................................................................................

997
25
97
74
53
106
303

1,323
69
32
203
21
257
301

1,401
89
48
186
21
270
359

1,323
69
32
203
21
257
301

1,253
4
47
228
20
235
211

1,271
26
107
151
37
272
210

1,361
8
114
156
12
324
293

1,244
8
73
111
35
326
307

48
49
50

Asia............................................................................................................
Japan ....................................................................................................
Middle East oil-exporting countries3 ..............................................

2,931'
448
1,523

2,905'
494'
1,017

2,995'
517
1,069'

2,905'
494'
1,017

2,950'
581'
901

3,091'
418'
1,030'

2,909
502
944

2,848
645
894

51
52

Africa........................................................................................................
Oil-exporting countries4 ....................................................................

743
312

728
384

775
370

728
384

742
382

875
498

1,006
633

814
514

53

All other5..................................................................................................

203

233

287

233

263

367

396

456

3,054'
97'
321
529
246
302
824

1. For a description of the changes in the International Statistics tables, see July
1979 B u l l e t i n , p. 550.
2. Before December 1978, foreign currency data include only liabilities denominated in foreign currencies with an original maturity of less than one year.




439'
1,483
375
81
18
514
121
72

3,639'
137
467
548'
227
310
1,077'

304
1,347
390
2
14
198
122
71

3,411'
105'
394
554'
206
348
1,015

439'
1,483
375
81
18
514
121
72

3,639'
137
467
548'
227
310
1,077'

380'
1,764
459
83
22
694
101
70

3,716'
117
503
545'
288
382
1,012'

530'
1,633
434
2
25
700
101
72

4,038'
132
485
727'
245
462
1,133'

4,079'
109
501
693
276
452
1,045'

4,075
89
582
688
219
493
1,012

3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.

Nonbank-Reported Data

A65

3.25 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions of dollars, end of period
1979
Type, and area or country

1978

1980

1979
Sept.'

D ec.'

Mar.'

June'

Sept.

Dec .p

1 Total.......................................................................................................

27,892 r

31,023

31,022

31,023

32,077

32,024

31,579'

33,560

2 Payable in dollars........................................................................................
3 Payable in foreign currencies2 ..................................................................

24,905'
2,988'

27,850
3,173

28,345
2,677

27,850
3,173

29,069
3,008

28,962
3,062

28,322'
3,257'

30,719
2,841

4 Financial claim s..........................................................................................
5 Deposits....................................................................................................
6
Payable in dollars................................................................................
7
Payable in foreign currencies............................................................
8 Other financial claim s............................................................................
9
Payable in dollars................................................................................
10
Payable in foreign currencies............................................................

16,570'
11,111'
10,043'
1,068
5,459
3,874
1,584

18,222
12,579
11,663
916
5,643
3,803
1,840

19,251
13,808
12,900
908
5,443
4,030
1,413

18,222
12,579
11,663
916
5,643
3,803
1,840

19,332
13,657
12,681
977
5,675
4,055
1,620

18,630
12,786
11,907
879
5,844
4,103
1,740

18,285'
12,218'
11,056'
1,162'
6,067'
4,399'
1,668'

18,979
13,223
12,499
724
5,756
4,063
1,693

11 Commercial claims......................................................................................
12 Trade receivables....................................................................................
13 Advance payments and other claim s..................................................

11,323'
10,764'
559

12,801
12,112
688

11,770
11,058
712

12,801
12,112
688

12,745
12,095
649

13,394
12,685
710

13,294
12,605
688

14,581
13,873
709

14
15

10,988'
335'

12,384
416

11,415
355

12,384
416

12,333
411

12,952
443

12,867
427

14,157
424

Financial claims
Europe......................................................................................................
Belgium-Luxembourg........................................................................
France....................................................................................................
Germ any..............................................................................................
Netherlands..........................................................................................
Switzerland..........................................................................................
United Kingdom.............................................. ................................

5,215'
48
178
510
103
98
4,021'

6,146
32
177
409
53
73
5,081

6,581
33
191
393
51
85
5,540

6,146
32
177
409
53
73
5,081

5,843
21
290
300
39
89
4,790

5,843
23
307
190
37
96
4,863

5,605'
17'
409'
168
30
41
4,545'

By type

Payable in dollars....................................................................................
Payable in foreign currencies................................................................
By area or country

16
17
18
19
20
21
22

5,974
193
334
224
32
57
4,865

23

Canada......................................................................................................

4,484'

4,813

4,767

4,813

4,885

4,783

4,804'

4,698

24
25
26
27
28
29
30

Latin America and Caribbean..............................................................
Bahamas................................................................................................
Berm uda..............................................................................................
B razil....................................................................................................
British West Indies..............................................................................
M exico..................................................................................................
V enezuela............................................................................................

5,714'
3,001'
80
151
1,291'
163
157

6,261
2,741
30
163
2,001
158
143

6,736
3,338
31
133
1,838
156
139

6,261
2,741
30
163
2,001
158
143

7,583
3,516
34
128
2,591
169
134

6,924
3,080
25
120
2,393
178
139

6,757'
2,831'
65
116
2,301'
192
128

7,353
3,233
135
96
2,577
208
114

31
32
33

Asia............................................................................................................
Japan ....................................................................................................
Middle East oil-exporting countries3 ..............................................

920
305
18

706
199
16

821
225
21

706
199
16

713
226
18

758
253
16

791'
269
20

685
158
19

34
35

Africa........................................................................................................
Oil-exporting countries4 ....................................................................

181
10

253
49

277
41

253
49

265
40

256
35

260
29

237
26

36

All other5..................................................................................................

55

44

69

44

43

65

68

32

37
38
39
40
41
42
43

Commercial claims
Europe......................................................................................................
Belgium-Luxembourg........................................................................
France....................................................................................................
Germany..............................................................................................
Netherlands..........................................................................................
Switzerland..........................................................................................
United Kingdom..................................................................................

4,897
202
726
589
298
269
901

4,121
179
517
450
261
224
814

4,897
202
726
589
298
269
901

4,759
208
702
515
347
349
926

4,830
258
662
510
297
429
903

4,655
230
707
569
289
333
988

5,450
232
1,124
571
318
345
929

3,980'
144
609
398'
267
198
824'

44

Canada......................................................................................................

1,094'

846

1,165

846

861

896

929

919

45
46
47
48
49
50
51

Latin America and Caribbean..............................................................
Bahamas................................................................................................
Berm uda..............................................................................................
B razil....................................................................................................
British West Indies..............................................................................
M exico..................................................................................................
V enezuela............................................................................................

2,544'
109
215
628'
9
505'
291'

2,850
21
197
645
16
698
343

2,602
26
154
567
13
650
345

2,850
21
197
645
16
698
343

2,986
19
135
654
11
832
350

3,277
19
133
695
9
921
395

3,375
53
81
710
17
981
388

3,796
21
148
858
34
1,088
411

52
53
54

Asia............................................................................................................
Japan ....................................................................................................
Middle East oil-exporting countries3 ..............................................

3,080'
976
716'

3,413
1,140
766

3,113
1,128
700

3,413
1,140
766

3,395
1,213
719

3,576
1,143
830

3,395
1,094
837

3,449
989
821

55
56

Africa........................................................................................................
Oil-exporting countries4 ....................................................................

447
136

554
133

549
140

554
133

517
114

566
115

669
135

651
151

57

All other5..................................................................................................

178'

240

220

240

225

249

270

316

1. For a description of the changes in the International Statistics tables, see July
1979 B u ll e t i n , p. 550.
2. Prior to December 1978, foreign currency data include only liabilities denominated in foreign currencies with an original maturity of less than one year.




3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.

A66

International Statistics □ July 1981

3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Rate on June 30, 1981

Rate on June 30, 1981

Country
Per­
cent
Argentina............................
Austria................................
Belgium................................
Brazil....................................
Canada ................................
Denmark..............................

Rate on June 30, 1981

Country
Month
effective

311.15
6.75
13.0
40.0
19.08
11.00

June 1981
Mar. 1980
May 1981
June 1980
June 1981
Oct. 1980

Country
Per­
cent
22.0
7.5
19.0
6.25
9.0
9.0

Germany, Fed. Rep. o f . . .
Netherlands........................
Norway................................

1. As from February 1981, the rate at which the Bank of France discounts
Treasury bills for 7 to 10 days.
N o te . Rates shown are mainly those at which the central bank either
discounts or makes advances against eligible commercial paper and/or

Month
effective
May 1981
May 1980
Mar. 1981
Mar. 1981
Mar. 1981
Nov. 1979

Per­
cent
Sweden................................
Switzerland..........................
United Kingdom................
Venezuela............................

Month
effective

12.0
5.0
12.0
10.0

Jan. 1981
May 1981
Mar. 1981
July 1980

government securities for commercial banks or brokers. For countries with
more than one rate applicable to such discounts or advances, the rate
shown is the one at wmch it is understood the central bank transacts the
largest proportion of its credit operations.

3.27 FOREIGN SHORT-TERM INTEREST RATES
Percent per annum, averages of daily figures
1980
Country, or type

1978

1981

1980

1979

Dec.

Feb.

Jan.

Mar.

Apr.

May

June

1
2
3
4
5

Eurodollars..................................................
United Kingdom........................................
Canada ........................................................
Germany......................................................
Switzerland..................................................

8.74
9.18
8.52
3.67
0.74

11.96
13.60
11.91
6.64
2.04

14.00
16.59
13.12
9.45
5.79

19.47
14.64
16.83
10.11
6.61

18.07
14.20
16.98
9.41
5.68

17.18
13.12
17.28
10.74
7.09

15.36
12.58
16.85
13.44
8.33

15.95
12.26
17.35
13.12
8.67

19.06
12.34
18.96
13.06
9.87

17.86
12.61
19.28
13.05
10.02

6
7
8
9
10

Netherlands................................................
France..........................................................
Italy..............................................................
Belgium........................................................
Japan............................................................

6.53
8.10
11.40
7.14
4.75

9.33
9.44
11.85
10.48
6.10

10.60
12.18
17.50
14.06
11.45

9.69
11.52
17.47
12.75
9.60

9.36
11.38
17.34
12.41
9.00

9.78
11.87
17.50
12.52
8.52

10.61
12.56
18.22
13.93
7.87

10.41
13.00
19.92
17.16
6.83

11.76
15.75
19.92
16.90
7.22

11.81
18.84
20.49
15.58
7.41

N o te . Rates are for 3-month interbank loans except for the following:
Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan,
Gensaki rate.

3.28 FOREIGN EXCHANGE RATES
Cents per unit of foreign currency
1980
Country/currency

1978

1979

1981

1980
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

1
2
3
4
5

Australia/dollar..........................
Austria/schilling..........................
Belgium/franc..............................
Canada/dollar..............................
Denmark/krone..........................

114.41
6.8958
3.1809
87.729
18.156

111.77
7.4799
3.4098
85.386
19.010

114.00
7.7349
3.4247
85.530
17.766

116.86
7.1549
3.1543
83.560
16.573

118.19
7.0297
3.0962
83.974
16.181

116.26
6.6033
2.8972
83.442
15.152

116.29
6.6959
2.8966
83.936
15.109

115.32
6.5355
2.8220
83.966
14.683

114.06
6.1722
2.6742
83.265
13.864

114.07
5.9502
2.5734
83.050
13.384

6
7
8
9
10

Finland/markka..........................
France/franc................................
Germany/deutsche mark..........
India/rupee..................................
Ireland/pound............................

24.337
22.218
49.867
12.207
191.84

27.732
23.504
54.561
12.265
204.65

26.892
23.694
55.089
12.686
205.77

25.903
21.925
50.769
12.608
189.01

25.752
21.539
49.771
12.567
185.54

24.656
20.142
46.757
12.164
173.31

24.612
20.147
47.498
12.131
173.25

23.059
19.548
46.219
12.060
168.46

23.207
18.225
43.601
11.900
159.49

22.511
17.679
42.054
11.688
153.61

11
12
13
14
15

Italy/lira......................................
Japan/yen....................................
Malaysia/ringgit..........................
Mexico/peso................................
Netherlands/guilder....................

16
17
18
19
20

New Zealand/dollar..................
Norway/krone............................
Portugal/escudo..........................
South Africa/rand......................
Spain/peseta................................

103.64
19.079
2.2782
115.01
1.3073

102.23
19.747
2.0437
118.72
1.4896

97.337
20.261
1.9980
128.54
1.3958

95.404
19.370
1.8773
132.83
1.2653

96.137
19.087
1.8591
133.69
1.2409

93.414
18.485
1.7722
129.27
1.1686

91.999
18.540
1.7621
126.50
1.1672

90.273
18.271
1.7178
123.32
1.1395

88.150
17.652
1.6449
119.35
1.0953

85.823
16.907
1.5899
115.18
1.0565

21
22
23
24

Sri Lanka/rupee..........................
Sweden/krona............................
Switzerland/franc........................
United Kingdom/pound............

6.3834
22.139
56.283
191.84

6.4226
23.323
60.121
212.24

6.1947
23.647
59.697
232.58

5.7379
22.722
56.022
234.59

5.9525
22.490
54.907
240.29

5.5975
21.734
51.502
229.41

5.5527
21.704
52.043
223.19

5.4185
21.309
50.664
217.53

5.4422
20.450
48.400
208.84

5.3970
19.802
48.226
197.38

92.39

88.09

87.39

90.99

91.38

96.02

96.22

98.80

103.59

106.86

.11782
.47981
43.210
4.3896
46.284

.12035
.45834
45.720
4.3826
49.843

.11094
.44311
45.967
4.3535
50.369

.10704
.47747
45.406
4.3071
46.730

.10478
.49419
44.994
4.2792
45.810

.09807
.48615
44.196
4.2544
42.870

.09699
.47897
43.830
4.2238
42.912

.09280
.46520
43.182
4.1880
41.660

.08766
.45332
42.752
4.1500
39.224

.08436
.44621
42.720
4.1066
37.816

M emo :

25 United States/dollar*................

1. Index of weighted-average exchange value of U.S. dollar against cur­
rencies of other G-10 countries plus Switzerland. March 1973 = 100.
Weights are 1972-76 global trade of each of the 10 countries. Series
revised
FRASERas of August 1978. For description and back data, see “Index of

Digitized for


the Weighted-Average Exchange Value of the U.S. Dollar: Revision” on page
700 of the August 1978 B u lle t in .
N o te . Averages of certified noon buying rates in New York for cable transfers.

A67

Guide to Tabular Presentation,
Statistical Releases, and Special Tables
G u id e

to

Ta b u l a r P r e s e n t a t i o n

Symbols and Abbreviations
c
e
P
r
*

Corrected
Estimated
Preliminary
Revised (Notation appears on column heading
when more than half of figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is
millions)

0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs

Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporat
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable

General Information
Minus signs are used to incidate (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 politi­
cal subdivisions.
In some of the tables details do not add to totals because of
rounding.

S t a t ist ic a l R e l e a s e s

List Published Semiannually, with L atest Bulletin Reference
Anticipated schedule of release dates for periodic releases

Issue

..................................................

Page

December 1980

A80

October 1980
December 1980
February 1981
April 1981
July 1981
July 1981

A71
A68
A68

S p e c ia l Ta b l e s

Published Irregularly , with L atest Bulletin Reference
Commercial bank assets and liabilities, call dates, December 31, 1978, to March 31, 1980 ........
Commercial bank assets and liabilities, June 30, 1980 ...............................................................
Commercial bank assets and liabilities, September 30, 1980 .....................................................
Commercial bank assets and liabilities, December 31, 1980 ......................................................
Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1981 ..............
Commercial bank assets and liabilities, March 31, 1981 ............................................................

Special tables begin on following page.




A ll

A78
A72

A68

Special Tables □ July 1981

4.10 TIME AND SAVINGS DEPOSITS Held by Insured Commercial Banks on Recent Survey Dates
Deposits
Number of issuing banks
Types of deposits, denomination,
and original maturity

Millions of dollars
Oct. 29,
1980

Jan. 28,
1981

Apr. 29,
1981

Oct. 29,
1980

Jan. 28,
1981

Percentage change
Apr. 29,
1981

Oct. 29Jan. 28

Jan. 28Apr. 29

Total time and savings deposits..............................................

14.364

14.346

14.377

713,860

768,145

772,782

7.6

Savings......................................................................................

14.364

14.346

14.377

211,128

208,249

204,485

- 1 .4

Individuals and nonprofit organizations..........................
Partnerships and corporations operated for profit
(other than commercial banks)..................................
Domestic governmental units............................................
All other................................................................................

14.364

14.346

14.377

196,074

194,430

191,371

10,528
9.333
1,530

11,031
9,386
1,720

10,762
9,277
1,898

10,974
3,567
512

9,714
3,242
862

8,987
3,130
998

Interest-bearing time deposits, less than $100,000 ............

0.6
-

1.8

-

1.6

H older

-1 1 .5
-9 .1
68.5

- 7 .5
-3 .5
15.7

14,246

14,223

14,168

274.507

300,960

310,927

9.6

Domestic governmental units1 ..........................................
14 up to 90 d a y s..............................................................
90 up to 180 d a y s............................................................
180 days up to l year......................................................
1 year and over................................................................
Other than domestic governmental units1 ......................
14 up to 90 d a y s..............................................................
90 up to 180 d a y s............................................................
180 days up to 1 year......................................................
1 up to 2 Vi years..............................................................
2Vz up to 4 years..............................................................
4 up to 6 years..................................................................
6 up to 8 years..................................................................
8 years and o v e r ..............................................................
IRA and Keogh Plan time deposits, with maturities of
3 years or more or variable ceiling r a te s................
Money market certificates, $10,000 or more, with ma­
turities of exactly 6 months2 ......................................
Variable interest rate ceiling time deposits of less than
$100,000 with maturities of 2Vi years or
more2,3 ..........................................................................

9,125
3,551
5,224
3,756
7.334
14,127
4,360
10,583
7,802
13,597
12,636
13,496
11,586

8,780
3,595
4,814
4,035
6,910
14,127
4,199
10,448
8,084
13,774
12,211
13,474
11,276
8,143

2,232
540
485
335
871
85,446
1,404
15,262
1,895
11,108
7,606
27,866
17,776
2,528

1,952
329
579
277
767
76,835
1,075
13,876
2,336
9,622
6,591
24,618
16,405
2,311

1,795
280
474
316
724
68,651
1,137
12,744
2,522
8,277
5,485
22,197
14,069
2,220

-1 2 .5
-3 9.1
19.3
-1 7 .3
-1 1 .9

8 ,1 1 1

9,187
3,438
5,223
3,998
6,757
14,102
3,889
10,738
7,655
13,688
12,280
13,256
11,320
8,210

8.6

-1 4 .0
-1 6 .8
- 9 .8
-1 4 .2
- 4 .0

10,392

10,432

10,893

5,488

5,703

6,351

3.9

11.4

13,830

13,907

13,960

152,848

184,745

199,378

20.9

7.9

13,374

13,280

13,538

28,493

31,725

34,752

11.3

9.5

Interest-bearing time deposits, $100,000 or more..............

13,163

13,479

13,419

222,513

253,796

251,406

14.1

- .9

Non-interest-bearing time deposits......................................
Less than $100,000..............................................................
$100,000 or m o r e ................................................................

1,386
1,018
688

1,407
1,055
672

1,567
1,237
674

4,230
910
3,319

4,235
760
3,475

4,377
736
3,641

-1 6 .6
4.7

3.4
-3 .1
4.8

Club accounts (Christmas savings, vacation, and the like)

8,375

9,076

8,974

1,483

906

1,587

-3 8 .9

75.2

3.3

H older

1. Excludes all money market certificates, all 2Vi-year and over variable-rate
ceiling certificates, IRAs, and Keogh Plan accounts. Such accounts are included
in the items below.
2. Excludes accounts held in IRA and Keogh Plans. Such accounts are included
in item above.
3. Effective Jan. 1,1980, commercial banks, savings and loan associations, and
mutual savings banks are authorized to offer variable ceiling accounts with no
required minimum denomination and with maturities of 2Vi years or more. The
maximum rate for commercial banks is 3 percentage point below the yield on 2 Vi/4
year U.S. Treasury securities: the ceiling rate for thrift institutions is V percentage
4
point higher than that for commercial banks.




10 .1

-

-2 3 .4
-9 .1
23.3
-1 3 .4
-1 3 .3
-1 1 .7
- 7 .7
-

.1

-

8.1

-1 4 .7
-1 8 .2
14.0
-5 .5
-1 0 .7
5.8
-

8.2
8.0

N o te . All banks that had either discontinued offering or never offered certain
types of deposits as of the survey date are not counted as issuing banks. However,
small amounts of deposits held at banks that had discontinued issuing certain types
of deposits are included in the amounts outstanding.
Details may not add to totals because of rounding.

Time and Savings Deposits

A69

4.11 SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS Held by Insured Commercial Banks on Jan. 28, 1981,
and Apr. 29, 1981, Compared with Previous Survey, by Type of Deposit, by Most Common Rate Paid on New Depos­
its in Each Category, and by Size of Bank
Size of bank
(total deposits in millions of dollars)
Deposit group, original
maturity, and distribu­
tion of deposits by
most common rate

Less than 100
Apr. 29,
1981

Size of bank
(total deposits in millions of dollars)
All banks

All banks

Jan. 28,
1981

Apr. 29,
1981

Jan. 28,
1981

100 and over
Apr. 29,
1981

Jan. 28,
1981

Less than 100
Apr. 29,
1981

Jan. 28,
1981

Apr. 29,
1981

Jan. 28,
1981

100 and over
Apr. 29,
1981

Jan. 28,
1981

Amount of deposits (in millions of dollars)
or percentage distribution

Number of banks, or percentage distribution

Savings deposits
Individuals and nonprofit
organizations

14,377
100.0
2.7
3.5
93.8
93.8

14,346
100.0
2.9
4.0
93.1
93.1

12,954
100.0
2.7
3.4
93.9
93.9

12,997
100.0
2.9
3.9
93.3
93.3

1,423
100.0
2.8
3.9
93.4
93.4

1,349
100.0
3.0
6.0
91.0
91.0

191,371
100.0
4.1
3.5
92.5
92.5

194,430
100.0
3.7
4.5
91.8
91.8

61,236
100.0
5.2
4.4
90.3
90.3

66,869
100.0
4.6
5.3
90.1
90.1

130,135
100.0
3.5
3.0
93.5
93.5

127,561
100.0
3.1
4.1
92.7
92.7

10,762
100.0
.9
3.2
95.8
95.8

11,031
100.0
.8
4.0
95.1
95.1

9,361
100.0
.9
3.2
95.9
95.9

9,709
100.0
8
4.0
95.2
95.2

1,400
100.0
.9
3.9
95.2
95.2

1,322
100.0
1.0
4.4
94.6
94.6

8,987
100.0
.8
4.7
94.5
94.5

9,714
100.0
.8
5.6
93.6
93.6

2,742
100.0
1.0
8.9
90.1
90.1

3,132
100.0
.9
11.6
87.5
87.5

6,245
100.0
.7
2.8
96.4
96.4

6,581
100.0
.8
2.7
96.5
96.5

9,264
100.0
1.1
1.6
97.3
97.3

9,343
100.0
.9
2.2
96.8
96.8

8,252
100.0
1.1
1.2
97.6
97.6

8,381
100.0
1.0
2.0
97.0
97.0

1,012
100.0
.6
4.8
94.6
94.6

962
100.0
.5
4.6
95.0
95.0

3,123
100.0
.3
3.7
96.0
96.0

3,239
100.0
.2
3.7
96.1
96.1

1,650
100.0
.4
.2
99.5
99.5

1,682
100.0
.3
1.8
97.9
97.9

1,473
100.0
.3
7.6
92.0
92.0

1,556
100.0
.2
5.7
94.2
94.2

1,898
100.0
3.6
.1
96.3
96.3

1,693
100.0
3.7
1.9
94.5
94.5

1,621
100.0
3.3
(2)
96.7
96.7

1,454
100.0
3.3
2.0
94.6
94.6

277
100.0
5.1
.7
94.2
94.2

239
100.0
5.6
1.0
93.4
93.4

998
100.0
.4
(2)
99.6
99.6

859
100.0
.5
2.7
96.8
96.8

790
100.0
(2)
100.0
100.0

607
100.0
(2)
3.8
96.2
96.2

208
100.0
1.7
(2)
98.3
98.3

252
100.0
1.6
(2)
98.4
98.4

14 up to 90 days
Issuing banks..........................
Distribution, total...................
5.00 or less..........................
5.01-5.5 0
5.51-8.0 0
Memo: Paying ceiling rate1........

3,588
100.0
18.2
31.5
50.3
42.8

3,433
100.0
23.5
34.8
41.7
35.9

2,936
100.0
20.1
25.1
54.8
46.3

2,851
100.0
26.2
29.9
43.9
37.6

652
100.0
10.0
60.3
29.7
27.5

581
100.0
10.5
58.4
31.1
27.9

267
100.0
7.7
33.9
58.5
51.9

319
100.0
10.0
35.6
54.4
50.5

122
100.0
15.9
9.8
74.2
65.1

169
100.0
16.9
14.2
68.9
64.5

146
100.0
.8
53.9
45.3
40.9

149
100.0
2.3
59.8
37.9
34.6

90 up to 180 days
Issuing banks..........................
Distribution, total...................
5.00 or less...........................
5.01-5.5 0
5.51-8.0 0
Memo: Paying ceiling rate1........

4,809
100.0
3.0
28.9
68.0
24.8

5,217
100.0
3.3
22.0
74.8
26.0

4,017
100.0
3.6
29.4
67.0
25.4

4,454
100.0
3.7
21.7
74.6
26.5

791
100.0
.4
26.4
73.2
21.9

763
100.0
.5
23.8
75.7
23.0

471
100.0
(2)
16.3
83.7
20.5

577
100.0
.1
13.7
86.2
22.2

197
100.0
.1
30.5
69.4
36.5

274
100.0
.2
22.5
77.4
36.9

303
100.0
(2)
6.1
93.9
9.0

302
100.0
(2)
5.8
94.2
8.8

180 days up to 1 year
Issuing banks..........................
Distribution, total...................
5.00 or less..........................
5.01-5.5 0
5.51-8.0 0
Memo: Paying ceiling rate1........

4,035
100.0
4.2
22.2
73.5
25.2

3,998
100.0
.7
27.5
71.8
20.6

3,374
100.0
5.1
23.4
71.6
24.8

3,358
100.0
.8
29.2
70.0
19.7

661
100.0
(2)
16.6
83.4
27.5

640
100.0
(2)
18.8
81.2
25.5

316
100.0
.8
12.9
86.3
27.5

277
100.0
(2)
14.7
85.3
23.1

136
100.0
2.0
20.8
77.3
33.8

104
100.0
(2)
25.8
74.2
30.5

180
100.0
(2)
6.8
93.2
22.7

173
100.0
(2)
8.1
91.9
18.7

1 year and over
Issuing banks..........................
Distribution, total...................
5.50 or less..........................
5.51-6.0 0
6.01- 8.0 0
Memo: Paying ceiling rate1........

6,869
100.0
1.4
47.1
51.6
19.1

6,751
100.0
1.7
48.3
50.0
17.4

5,990
100.0
1.1
45.5
53.4
18.9

5,939
100.0
1.4
47.3
51.3
17.0

879
100.0
3.6
57.3
39.1
20.1

812
100.0
3.6
55.8
40.6
20.2

392
100.0
2.0
56.4
41.5
13.4

767
100.0
35.7
32.2
32.1
17.8

227
100.0
.4
46.7
52.9
11.0

605
100.0
44.2
21.3
34.5
18.8

165
100.0
4.3
69.9
25.8
16.7

162
100.0
3.8
73.1
23.0
13.8

Issuing banks..............................
Distribution, total...................
4.50 or less..............................
4.51-5.0 0
5.01-5.2 5
Memo: Paying ceiling rate1.......
Partnerships and corporations

Issuing banks..............................
Distribution, total.......................
4.50 or less..............................
4.51-5.0 0
5.01-5.2 5
Memo: Paying ceiling rate1........
D om estic governm ental units

Issuing banks..............................
Distribution, total.......................
4.50 or less..............................
4.51-5.0 0
5.01-5.2 5
Memo: Paying ceiling rate1........
A ll other

Issuing banks..............................
Distribution, total.......................
4.50 or less..............................
4.51-5.0 0
5.01-5.2 5
Memo: Paying ceiling rate1........
Time deposits less than $100,000
D om estic governm ental units

For notes see end of table.




A70

Special Tables □ July 1981

4.11 Continued
Size of bank
(total deposits in millions of dollars)
Deposit group, original
maturity, and distribu­
tion of deposits by
most common rate

Size of bank
(total deposits in millions of dollars)

All banks

All banks
Less than 100

Apr. 29,
1981

Jan. 28,
1981

Apr. 29,
1981

100 and over

Jan. 28,
1981

Apr. 29,
1981

Less than 100

Jan. 28,
1981

Apr. 29,
1981

Jan. 28,
1981

Apr. 29,
1981

100 and over

Jan. 28,
1981

Apr. 29,
1981

Jan. 28,
1981

Amount of deposits (in millions of dollars)
or percentage distribution

Number of banks or percentage distribution

Time deposits less than $100,000
(cont.)
Other than dom estic governmental
units

14 up to 90 days
Issuing banks..................................
Distribution, total..........................
5.00 or less..................................
5.01-5.25......................................
Memo: Paying ceiling rate1..............

4,199
100.0
18.6
81.4
81.4

3,848
100.0
20.6
79.4
79.4

3,231
100.0
20.6
79.4
79.4

2,926
100.0
23.3
76.7
76.7

969
100.0
12.0
88.0
88.0

923
100.0
11.9
88.1
88.1

1,137
100.0
9.9
90.1
90.1

1,075
100.0
14.2
85.8
85.8

135
100.0
29.9
70.1
70.1

104
100.0
37.9
62.1
62.1

1,002
100.0
7.3
92.7
92.7

971
100.0
11.6
88.4
88.4

90 up to 180 days
Issuing banks..................................
Distribution, total..........................
4.99 or less..................................
5.00-5.50......................................
5.51-5.75......................................
Memo: Paying ceiling rate1..............

10,448
100.0
(2)
31.3
68.7
68.7

10,622
100.0

9,070
100.0

1,378
100.0

1,328
100.0

12,744
100.0

13,862
100.0

4,094
100.0

8,650
100.0

9,355
100.0

38

67.2
67.2

68.0
68.0

9,295
100.0
(2)
34.1
65.9
65.9

73.3
73.3

3$

76.1
76.1

69.8
69.8

66.9
66.9

65.8
65.8

180 days up to 1 year
Issuing oanks..................................
Distribution, total..........................
4.99 or less..................................
5.00-5.50......................................
5.51-5.75......................................
Memo: Paying ceiling rate1..............

8,024
100.0
.9
44.1
55.1
55.1

7,557
100.0
.8
49.5
49.7
49.7

7,060
100.0
1.0
47.0
52.0
52.0

6,634
100.0
.9
53.1
46.0
46.0

964
100.0

923
100.0

2,499
100.0

1,416
100.0

77.7
77.7

76.3
76.3

*8

1 up to 2Vfyears
Issuing banks..................................
Distribution, total..........................
5.50 or less..................................
5.51-6.00......................................
Memo: Paying ceiling rate1..............

13,768
100.0
.3
99.7
99.6

13,682
100.0
.7
99.3
98.9

12,362
100.0
.2
99.8
99.8

12,354
100.0
.6
99.4
99.0

1,405
100.0
1.4
98.6
98.3

2Vi years up to 4 years
Issuing banks..................................
Distribution, total..........................
6.00 or less.................................
6.01-6.50......................................
Memo: Paying ceiling rate1..............

12,152
100.0
2.1
97.9
97.5

12,228
100.0
2.5
97.5
97.5

10,806
100.0
2.0
98.0
97.6

10,946
100.0
2.4
97.6
97.6

4 up to 6 years
Issuing banks..................................
Distribution, total..........................
7.00 or less..................................
7.01-7.25......................................
Memo: Paying ceiling rate1,3............

13,465
100.0
8.0
92.0
91.9

13,248
100.0
3.8
96.2
96.2

12,059
100.0
8.6
91.4
91.4

6 up to 8 years
Issuing banks..................................
Distribution, total..........................
7.25 or less..................................
7.26-7.50......................................
Memo: Paying ceiling rate1,3............

11,268
100.0
3.2
96.8
96.6

11,313
100.0
2.4
97.6
97.3

8 years and over
Issuing banks..................................
Distribution, total..................
7.50 or less..................................
7.51-7.75......................................
Memo: Paying ceiling rate1,3 ..........

8,085
100.0
2.4
97.6
97.6

31.7
68.3
68.3

76.0
76.0

4,506
100.0
(2)
26.6
73.4
73.4

1,245
100.0
(2)
71.6
28.4
28.4

913
100.0
(2)
76.7
23.2
23.2

1,254
100.0

« (2}
53.8
53.8

2,329
100.0
(2)
57.8
42.2
42.2

79.1
79.1

54.4
54.4

1,328
100.0
1.4
98.6
98.2

8,273
100.0
.6
99.4
99.0

9,616
100.0
1.1
98.9
98.5

5,047
100.0
.2
99.8
99.8

6,120
100.0
.6
99.4
99.3

3,226
100.0
1.1
98.9
97.9

3,496
100.0
2.1
97.9
96.9

1,347
100.0
2.6
97.4
97.0

1,282
100.0
3.4
96.6
96.3

5,463
100.0
1.2
98.8
97.3

6,568
100.0
1.6
98.4
98.2

3,022
100.0
.5
99.5
97.2

3,698
100.0
1.3
98.7
98.7

2,440
100.0
2.1
97.9
97.5

2,871
100.0
2.1
97.9
97.5

11,915
100.0
3.8
96.2
96.2

1,406
100.0
2.9
97.1
96.4

1,333
100.0
3.3
96.7
95.9

22,156
100.0
4.9
95.1
95.0

24,573
100.0
2.2
97.8
97.7

11,557
100.0
7.4
92.6
92.6

12,955
100.0
2.6
97.4
97.4

10,599
100.0
2.2
97.8
97.6

11,619
100.0
1.7
98.3
98.1

9,920
100.0
3.4
96.6
96.4

10,040
100.0
2.4
97.6
97.2

1,348
100.0
1.9
98.1
98.1

1,273
100.0
2.0
98.0
98.0

14,036
100.0
1.2
98.8
98.8

16,296
100.0
1.6
98.4
98.4

5,655
100.0
.1
99.9
99.9

7,017
100.0
1.0
99.0
99.0

8,381
100.0
1.9
98.1
98.1

9,280
100.0
2.0
98.0
98.0

8,198
100.0
3.1
96.6
96.9

6,890
100.0
2.2
97.8
97.8

7,075
100.0
2.6
97.4
97.4

1,194
100.0
3.9
96.1
96.1

1,123
100.0
6.0
94.0
94.0

2,196
100.0
4.7
95.3
95.3

2,297
100.0
6.4
93.6
93.6

770
100.0
.3
99.7
99.7

781
100.0
.4
99.6
99.6

1,427
100.0
7.0
93.0
93.0

1,516
100.0
9.5
90.5
90.5

10,768
100.0
13.4
34.8
51.8
2.8

10,308

9,456
100.0
14.1
33.1
52.8
3.0

9,048

1,313
100.0
8.3
46.9
44.8
1.2

1,260

6,349
100.0
4.0
41.3
54.7
2.6

5,701

2,107
100.0
6.5
27.2
66.3
4.1

1,861

4,242
100.0
2.8
48.3
48.9
1.8

3,840

13,960
100.0
19.0
81.0
80.0

13,907

12,538
100.0
20.0
80.0
78.9

12,559

1,442
100.0
10.1
89.9
89.9

1,348

199,378
100.0
11.7
88.3
87.9

184,745

86,830
100.0
17.6
82.4
81.6

80,491

112,548
100.0
7.1
92.9
92.9

104,254
(3)

*8

3$

20

20

0

>8

30

20

20

40

IRA and Keogh Plan time deposits,
with maturities o f 3 years or m ore
o r variable ceiling rates

Issuing banks......................................
Distribution, total..............................
7.50 or less......................................
7.51-8.00..........................................
8.01-14.29........................................
Memo: Paying ceiling rate1..............

(3)
(3)
(3)

v)

(3)

(3)
(3)

(3)

|3l

(3)

(3)
(3)
(3)
(3)
(3)

(3)
(3)
(3)
(3)
(3)

(3)

(3)
(3)
(3)

(3)

(3)
(3)
(3)
(3)
(3)

M oney m arket certificates, $10,000
o r more, 6 m onths

Issuing banks......................................
Distribution, total..............................
14.00 or less....................................
14.01-14.29......................................
Memo: paying ceiling rate1..............

For notes see end of table.




(3)
(3)
(3)
(3)

(3)
(3)
(3)
(3)

(3)
(3)
i3»

P)

(3)
(3)
(3)
(3)

(3)

(3)
(3)
«

(3)

(3)

(3)

Time and Savings Deposits
4.11

A71

Continued
Size of bank
(total deposits in millions of dollars)

Size of bank
(total deposits in millions of dollars)
All banks

Deposit group, original
maturity, and distribu­
tion of deposits by
most common rate

100 and over

Less than 100

Less than 100

Apr. 29, Jan. 28, Apr. 29, Jan. 28, Apr. 29, Jan. 28,
1981
1981
1981
1981
1981
1981

Apr. 29, Jan. 28, Apr. 29, Jan. 28, Apr. 29, Jan. 28,
1981
1981
1981
1981
1981
1981

Number of banks, or percentage distribution

Amount of deposits (in millions of dollars) or percentage
distribution

Time deposits less than $100,000 (cont.)
Variable interest rate ceiling time de­
posits o f less than $100,000 with
maturities o f 2 l/2 years or m ore

Issuing banks.........................................
Distribution, total..................................
11.00 or less.......................................
11.01-11.5 0
11.51-11.7 5
Memo: Paying ceiling rate1...................

13,458

13,191

12,058

100.0

100.0

3.0
.9
96.1
96.1

3.1
1.0

11,865

(3
)
(3)

1,326

34,729

100.0

100.0
1.8

1.0

.2

9$

95.8
95.8

18,360
100.0
1.3
.4
98.3
98.3

16,952
(3)
(3)

(3)
(3)

1,399

31,690
(3)
(3)
(3)

(3)

16,369
100.0
.6
(2)
99.4
99.4

493
100.0
29.5
26.7
13.9
29.9

393
100.0
35.9
36.7
3.5
24.0

262
100.0
37.0
30.8
2.8
29.4

387
100.0
26.4
27.1
16.1
30.3

(3)
(3)

14,738

Club accounts

Issuing banks.........................................
Distribution, total..................................

0.00....................................
O l^t.O ...............................
.O O

4.01-4.5............................................... 0
4.51-5.7............................................... 5

5,699

5,868

5,152

56.4
25.4
3.6
14.6

56.2
25.5
3.2
15.2

58.0
25.2
2.9
14.0

100.0

100.0

100.0

5,395
100.0
57.3
25.5
2.4
14.8

547

473

100.0

100.0

100.0

41.9
27.1
10.4

43.4
25.0
11.4

20.6

20.2

31.2
31.9
9.8
27.1

780

230
100.0
2 1.0

21.9
26.6
30.5

Moreover, the small amounts of deposits held at banks that had discontinued issuing
deposits are not included in the amounts outstanding. Therefore, the deposit amounts
shown in table 4.10 may exceed the deposit amounts shown in this table.
The most common interest rate for each instrument refers to the stated rate per
annum (before compounding) that banks paid on the largest dollar volume of
deposit inflows during the 2-week period immediately preceding the survey date.
Details may not add to totals because of rounding.

1. See B u l l e t i n table 1.16 for the ceiling rates that existed at the time of each
survey.
2. Less than .05 percent.
3. See the April 1981 b u l l e t i n (table 4.11) for a distribution on Jan. 28, 1981,
of these accounts by size of bank and by the interest rates paid.
N o te . All banks that either had discontinued offering or had never offered
particular types of deposits as of the survey date are not counted as issuing banks.

4.12 AVERAGE OF MOST COMMON INTEREST RATES PAID on Various Categories of Time and Savings Deposits
at Insured Commercial Banks, April 29, 1981
Bank size (total deposit in millions of dollars)
Type of deposit, holder, and
original maturity

All size
groups

Less
than 20

20 up
to 50

50 up
to 100

100 up
to 500

500 up
to 1,000

1,000
and over

Savings and small-denomination time deposits.............................................

9.40

10.18

9.89

9.61

9.33

8.86

8.99

Savings, total.................................................................................................
Individuals and nonprofit organizations..................................................
Partnerships and corporations.................................................................
Domestic governmental units...................................................................
All other.....................................................................................................

5.20
5.20
5.23
5.23
5.24

5.23
5.23
5.17
5.25
5.25

5.18
5.18
5.23
5.24
5.25

5.16
5.16
5.22
5.25
5.25

5.22
5.22
5.24
5.18
5.22

5.19
5.19
5.19
5.20
5.16

5.21
5.21
5.25
5.22
5.25

Other time deposits in denominations of less than $100,000, total...........
Domestic governmental units, total..........................................................
14 up to 90 days....................................................................................
90 up to 180 days..................................................................................
180 days up to 1 year.............................................................................
1 year and over......................................................................................

6.66

6.69
6.60
6.85
6.61
6.96
6.36

6.81
7.06
7.52
6.62
6.82
7.16

6.47
1.96
6.17
6.40
6.03
.97

6.66
5.91
4.98
5.79
6.14
7.01

6.67
6.23
6.03
6.04
6.47
6.59

6.64
6.30
6.57
6.28
6.73
5.95

Other than domestic government units, total.........................................
14 up to 90 days....................................................................................
90 up to 180 days..................................................................................
180 days up to 1 year.............................................................................
1 up to 2 V-, years....................................................................................
2V2 up to 4 years....................................................................................
4 up to 6 years........................................................................................
6 up to 8 years........................................................................................
8 years or more......................................................................................

6.70
5.20
5.67
5.58
5.98
6.46
7.22
7.48
7.65

6.69
5.25
5.73
5.57

6.80
5.16
5.70
5.37

6.68

6.68

6.68

6.00

6.50
7.24
7.50
7.07

6.45
7.21
7.50
7.75

5.25
5.67
5.66
5.95
6.41
7.21
7.48
7.65

5.09
5.62
5.71
5.99
6.49
7.24
7.49
7.69

6.64
5.23
5.68
5.71

6.00

5.05
5.65
5.51
5.93
6.50
7.24
7.50
7.75

IRA and Keogh Plan time deposits, with maturities of 3 years or more
or variable ceiling rates.........................................................................

10.16

10.45

10.82

10.52

10 .21

10.22

9.55

Money market certificates, exactly 6 months1.........................................

14.24

14.19

14.20

14.24

14.25

14.25

14.26

Variable interest rate ceiling time deposits of less than $100,000 with
maturities of 2Vi years or more2 .......................................................

11.72

11.72

11.75

11.68

11.73

11.64

11.75

Club accounts3................................................................................................

4.12

2.61

3.42

4.24

4.15

4.49

4.66

1. See note 2 in table 4.10.
2. See notes 2 and 3 in table 4.10.
3. Club accounts are excluded from all of the other categories.
N o te . The average rates were calculated by weighting the most common rate




5.20
6.45
6.17
6.46
3.54

6.00
6.46
7.20
7.45
7.68

reported on each type of deposit at each bank by the amount of that type of deposit
outstanding. All banks that had either discontinued offering or never offered par­
ticular types of deposit as of the survey date were excluded from the calculations
for those specific types of deposits.

A ll

Special Tables □ July 1981

4.20 DOMESTIC AND FOREIGN OFFICES, Commercial Banks with Assets of $100 Million or over1
?
Consolidated Report of Condition; March 31, 1981
Millions of dollars
Banks with foreign offices2
Item

Insured
Total

1 Total assets..........................................................................................................................................
2 Cash and due from depository institutions.............................................................................................
3
Currency and coin (U.S. and foreign )...............................................................................................
4
Balances with Federal Reserve B a n k s...............................................................................................
5
Balances with other central banks.......................................................................................................
6
Demand balances with commercial banks in United States...........................................................
7
All other balances with depository institutions in United States and with banks in foreign
countries...........................................................................................................................................
8
Time and savings balances with commercial banks in United S tates.......................................
9
Balances with other depository institutions in United States.....................................................
10
Balances with banks in foreign countries.......................................................................................
11
Foreign branches of other U.S. b ank s.......................................................................................
12
Other banks in foreign countries.................................................................................................
13
Cash items in process of collection.....................................................................................................
14 Total securities, loans, and lease financing receivables.....................................................................
15 Total securities, book v a lu e.....................................................................................................................
16 U.S. Treasury.........................................................................................................................................
17
Obligations of other U.S. government agencies and corporations.................................................
18
Obligations of states and political subdivisions in United States...................................................
19
All other securities.................................................................................................................................
20
Other bonds, notes, and debentures...............................................................................................
21
Federal Reserve and corporate stock .............................................................................................
22
Trading account securities.................................................................................................................
23 Federal funds sold and securities purchased under agreements to resell.........................................
24 Total loans, gross ........................................................................................................................................
25 Less: Unearned income on lo a n s...........................................................................................................
26
Allowance for possible loan loss...................................................................................................
27 E q u a ls: Loans, net...................................................................................................................................

Foreign
offices3

Domestic
offices

Banks
without
foreign
offices

1,488,612

1,101,637

365,820

768,509

386,975

295,239
12,685
24,570
2,906
37,964

250,495
7,248
18,274
2,906
26,832

134,900
319
475
2,802
4,597

115,595
6,928
17,799
104
22,234

44,744
5,437
6,296
N/A
11,132

139,156
8,187
482
130,487
N/A
N/A
77,957

129,454
2,779
203
126,472
26,595
99,877
65,781

124,421
1,252
117
123,052
25,396
97,656
2,284

5,033
1,526
86
3,420
1,199
2,221
63,497

9,703
5,408
279
4,016
N/A
N/A
12,176

1,088,529

762,310

204,893

225,674
65,946
34,409
100,630
24,687
11,051
1,742
11,895
51,902
818,121
13,035
8,386
796,700

557,418

326,219

126,113
32,770
16,193
55,350
21,801
8,976
1,291
11,534
28,677
608,000
6,888
6,057
595,055

9,878
392
42
682
8,762
7,342
166
1,254

99,560
33,176
18,216
45,281
2,887
2,075
451
361

356
194,017
1,597
240
192,180

116,235
32,378
16,151
54,668
13,038
1,634
1,124
10,280
28,321
413,983
5,292
5,817
402,874

196,622
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.

118,443
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
76,101
4,558
5,983
2,540
3,443
37,069
713
36,356
9,878
18,613
10,008
7,200
2,808
5,918
284,684
171,365
113,318
71,085
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
41,761
27,528
14,233
12,466
11,973
1,076
75,783
1,312
44,525
15,048
29,478
N.A.
29,946

6,985
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
36,754
152
563
270
294
27,621
295
27,326
515
7,902
1,498
1,120
378
675
114,057
9,176
104,881
6,301
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
27,748
25,003
2,746

111,459
24,368
842
64,019
60,642
3,802
56,841
3,376
219
3,157
22,229
39,347
4,406
5,420
2,271
3,149
9,448
419
9,029
9,363
10,711
8,510
6,080
2,430
5,243
170,627
162,190
8,437
64,784
54,341
16,849
18,709
15,142
3,567
3,253
15,530
4,244
3,701
7,584
10,443
14,013
2,526
11,487

78,179
8,779
1,260
44,046
41,933
2,061
39,873
2,113
114
1,999
24,094

2,479
1,299
122
24,606
820
9,119
N.A.
N.A.
2,933
11,733

9,987
10,674
954
83,869
491
35,406
N.A.
N.A.
29,759
18,213

1,787
7,817
542
7,653
43
319
N.A.
N.A.
N.A.
7,292

23,226
210,122
6,147
2,329
201,645

Total loam , gross, by category

28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80

Real estate loans.........................................................................................................................................
Construction and land developm ent...................................................................................................
Secured by farmland...............................................................................................................................
Secured by residential properties.........................................................................................................
1* to 4-family.......................................................................................................................................
FHA-insured or VA-guaranteed.................................................................................................
Conventional...................................................................................................................................
Multifamily...........................................................................................................................................
FHA-insured ...................................................................................................................................
Conventional...................................................................................................................................
Secured by nonfarm nonresidential properties.................................................................................
Loans to financial institutions...................................................................................................................
REITs and mortgage companies in United S tates...........................................................................
Commercial banks in United S ta tes...................................................................................................
U.S. branches and agencies of foreign banks...............................................................................
Other commercial banks...................................................................................................................
Banks in foreign countries.....................................................................................................................
Foreign branches of other U.S. b ank s...........................................................................................
Other.....................................................................................................................................................
Finance companies in United States...................................................................................................
Other financial institutions...................................................................................................................
Loans for purchasing or carrying securities...........................................................................................
Brokers and dealers in securities.........................................................................................................
Other.........................................................................................................................................................
Loans to finance agricultural production and other loans to farmers...............................................
Commercial and industrial loan s.............................................................................................................
U.S. addressees (domicile)...................................................................................................................
Non-U.S. addressees (domicile)...... ....................................................................................................
Loans to individuals for household, family, and other personal expenditures...............................
Installment loans.....................................................................................................................................
Passenger automobiles.......................................................................................................................
Credit cards and related p lan s.........................................................................................................
Retail (charge account) credit card.............................................................................................
Check and revolving credit...........................................................................................................
Mobile h om es.....................................................................................................................................
Other installment loans.....................................................................................................................
Other retail consumer goods.........................................................................................................
Residential property repair and modernization.........................................................................
Other installment loans for household, family, and other personal expenditures................
Single-payment loans.............................................................................................................................
All other loans.............................................................................................................................................
Loans to foreign governments and official institutions...................................................................
Other.........................................................................................................................................................
Lease financing receivables.......................................................................................................................
Bank premises, furniture and fixtures, and other assets representing bank premises....................
Real estate owned other than bank premises.......................................................................................
AH other assets...........................................................................................................................................
Investment in unconsolidated subsidiaries and associated companies...........................................
Customers’ liability on acceptances outstanding...............................................................................
U.S. addressees (dom icile)...............................................................................................................
Non-U.S. addressees (domicile)....................: .................................................................................
Net due from foreign branches, foreign subsidiaries, Edge and agreement subsidiaries............
Other.........................................................................................................................................................




80,252
5,262
7,674
N.A.
N.A.
37,463
N.A.
N.A.
10,332
19,522
11,699
7,446
4,253
10,012
346,080
N.A.
N.A.
128,189
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
45,268
N.A.
N.A.
14,253
19,790
1,618
83,436
1,355
44,844
N.A.
N.A.
N.A.
37,238

4,151
704
1,690
N.A.
N.A.
394
N.A.
N.A.
454
909
1,691
245
1,445
4,094
61,396
N.A.
N.A.
57,104
47,687
20,550
8,941
7,637
1,305
3,416
14,780
3,299
3,703
7,778
9,417
3,507
N.A.
N.A.

Commercial Banks
4.20

A73

Continued
Banks with foreign offices2
Item

Insured
Total

Foreign
offices3

Domestic
offices

Banks
without
foreign
offices

81 Total liabilities and equity capital4....................................................................................................
82 Total liabilities excluding subordinated debt.....................................................................................

1,448,612
1,404,988

1,101,637
1,047,339

N.A.
365,521

N.A.
714,510

386,975
357,649

83 Total deposits.............................................................................................................................................
84
Individuals, partnerships, and corporations.......................................................................................
85
U.S. government.................... .................................................................................................................
86
States and political subdivisions in United States.............................................................................
87
A lloth er...................................................................................................................................................
88
Foreign governments and official institutions...............................................................................
89
Commercial banks in United S ta tes...............................................................................................
90
U.S. branches and agencies of foreign b ank s...........................................................................
91
Other commercial banks in United States.................................................................................
92
Banks in foreign countries.................................................................................................................
93
Foreign branches of other U.S. b ank s.......................................................................................
94
Other banks in foreign countries.................................................................................................
95
Certified and officers’ checks, travelers checks, and letters of credit sold for cash....................
96 Federal funds purchased and securities sold under agreements to repurchase in domestic offices
and Edge and agreement subsidiaries.............................................................................................
97 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed
m oney...................................................................................................................................................
98
Interest-bearing demand notes (note balances) issued to U.S. Treasury.....................................
99
Other liabilities for borrowed m on ey.................................................................................................
100 Mortgage indebtedness and liability for capitalized le a se s.................................................................
101 All other liabilities.....................................................................................................................................
102 Acceptances executed and outstanding...............................................................................................
103 Net due to foreign branches, foreign subsidiaries. Edge and agreement subsidiaries................
104
Other.........................................................................................................................................................
105 Subordinated notes and debentures.........................................................................................................

1,141,388
815,787
2,428
51,420
258,348
38,680
76,617
N.A.
N.A.
143,054
N.A.
N.A.
13,405

821,465
535,130
1,607
25,056
249,569
38,521
68,267
11,059
57,208
142,780
28,251
114,530
10,103

300,458
116,319
198
530
181,373
31,374
17,528
3,387
14,140
132,472
28,189
104,283
2,038

521,006
418,811
1,409
24,526
68,195
7,147
50,740
7,672
43,068
10,308
62
10,246
8,065

319,924
280,657
821
26,364
8,779
159
8,350
N.A.
N.A.
271
N.A.
N.A.
3,302

140,150

112,791

513

112,278

27,359

38,873
7,659
31,214
1,886
82,691
45,015
N.A.
37,676
5,703
77,921
103
15,280
27,109
35,428
34,521
907

35,756
5,908
29,848
1,230
76,097
44,697
N.A.
31,400
4,017

16,634
N.A.
16,634
18
47,897
7,812
29,759
10,326
300

19,122
5,908
13,214
1,212
60,892
36,885
2,933
21,074
3,717

50,281
10
9,829
16,734
23,708
23,256
452

N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.

N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.

3,116
1,751
1,365
656
6,594
319
N.A.
6,275
1,686
27,640
93
5,451
10,375
11,721
11,265
456

301,311
146,838
392,781
215,542
199,461
16,081
31,706

206,526
75,379
239,101
156,936
144,385
12,551
16,397

0
0
0
0
0
0
0

206,526
75,379
239,101
156,936
144,385
12,551
16,397

94,785
71,459
153,680
58,606
55,076
3,530
15,309

114,538
174,823
48,210
N.A.
N.A.

54,661
99,519
44,765
30,093
14,672

0
0

54,661
99,519

59,877
75,304

10,117
N.A.
N.A.

34,648
N.A.
N.A.

3,444
N.A.
N.A.

2,075
N.A.

1,959
N.A.

276
N.A.

1,683
258

116
650

1,461,056
278,860
49,835
796,810
1,119,804
200,606
138,029
32,338
1,548

1,080,076
238,392
27,489
593,647
805,495
N.A.
111,117
30,890
181

327,528
130,135
549
188,797
300,466
N.A.
896
16,346

752,548
108,257
26,940
404,850
505,029
144,944
110,221
14,544

181

181

380,980
40,468
22,346
203,163
314,309
55,662
26,912
1,448
1,367

106 Total equity capital4 ...................................................................................................................................
107
Preferred sto c k .......................................................................................................................................
108 Common stock.........................................................................................................................................
109 Surplus.....................................................................................................................................................
110 Undivided profits and reserve for contingencies and other capital reserves................................
I ll
Undivided p rofits...............................................................................................................................
112
Reserve for contingencies and other capital reserves...................................................................
M emo
Deposits in dom estic offices

113
114
115
116
117
118
119
120
121
122
123
124
125
126

Total demand...............................................................................................................................................
Total savings...............................................................................................................................................
Total time.....................................................................................................................................................
Time deposits of $100,000 or m ore.........................................................................................................
Certificates of deposit (CDs) in denominations of $100,000 or more...........................................
Other.........................................................................................................................................................
Savings deposits authorized for automatic transfer and NOW accounts...........................................
Money market time certificates of $10,000 and less than $100,000 with original maturities of 26
weeks.....................................................................................................................................................
Demand deposits adjusted5.......................................................................................................................
Standby letters of credit, to ta l.................................................................................................................
U.S. addressees (dom icile)...................................................................................................................
Non-U.S. addressees (domicile)...........................................................................................................
Standby letters of credit conveyed to others through participations (included in total standby
letters of credit)...................................................................................................................................
Holdings of commercial paper included in total gross loans...............................................................
Average fo r 30 calendar days (or calendar month) ending with report date

127
128
129
130
131
132
133
134
135

Total assets...................................................................................................................................................
Cash and due from depository institutions.............................................................................................
Federal funds sold ana securities purchased under agreements to resell.........................................
Total loans...................................................................................................................................................
Total d ep osits.............................................................................................................................................
Time CDs in denominations of $100,000 or more in domestic offices.............................................
Federal funds purchased and securities sold under agreements to repurchase...............................
Other liabilities for borrowed m on ey.....................................................................................................
Number of b an k s.......................................................................................................................................

For notes see page A ll .




A74

Special Tables □ July 1981

4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or over1,6
/’
Consolidated Report of Condition; March 31, 1981
Millions of dollars
Member banks
Item

Insured
Total

National

State

Non­
member
insured

1 Total assets..........................................................................................................................................

1,155,484

981,419

739,455

241,965

174,064

2 Cash and due from depository institutions.............................................................................................
3
Currency and coin (U.S. and foreign )...............................................................................................
4 Balances with Federal Reserve B a n k s...............................................................................................
5
Balances with other central banks.......................................................................................................
6 Demand balances with commercial banks in United States...........................................................
7 All other balances with depository institutions in United States and with banks in foreign
countries...........................................................................................................................................
8
Time and savings balances with commercial banks in United S ta tes.......................................
9
Balances with other depository institutions in United States.....................................................
10
Balances with banks in foreign countries.......................................................................................
11 Cash items in process of collection.....................................................................................................

160,339
12,365
24,095
104
33,367

143,833
10,554
23,839
104
26,375

96,953
8,336
17,518
104
14,546

46,880
2,218
6,320
*
11,829

16,506
1,812
256
0
6,992

14,736
6,934
365
7,436
75,673

9,713
4,383
186
5,144
73,250

7,825
3,740
138
3,947
48,625

1,887
642
48
1,197
24,625

5,023
2,552
179
2,292
2,423

12 Total securities, loans, and lease financing receivables.....................................................................

883,637

735,505

567,808

167,698

148,131

13 Total securities, book v a lu e.....................................................................................................................
14 U.S. Treasury.........................................................................................................................................
15 Obligations of other U.S. government agencies and corporations.................................................
16 Obligations of states and political subdivisions in United States...................................................
17 All other securities.................................................................................................................................
18
Other bonds, notes, and debentures...............................................................................................
19
Federal Reserve and corporate sto ck .............................................................................................
20
Trading account securities.................................................................................................................

215,796
65,554
34,367
99,949
15,925
3,709
1,576
10,640

171,610
50,425
25,864
81,107
14,213
2,327
1,403
10,483

130,430
38,044
20,886
61,881
9,620
1,707
1,053
6,861

41,179
12,381
4,979
19,226
4,593
620
351
3,622

44,186
15,129
8,503
18,842
1,712
1,383
172
157

21 Federal funds sold and securities purchased under agreements to resell.........................................

51,547

43,663

34,933

8,730

7,884

22 Total loans, gross.......................................................................................................................................
23 Less: Unearned income on lo a n s...........................................................................................................
24
Allowance for possible loan loss...................................................................................................
25 E q u a ls: Loans, n e t ...................................................................................................................................

624,104
11,439
8,146
604,520

525,169
8,674
7,100
509,395

406,585
6,703
5,317
394,564

118,584
1,970
1,783
114,830

98,936
2,765
1,045
95,125

26 Real estate loans.........................................................................................................................................
27
Construction and land development...................................................................................................
28
Secured by farmland...............................................................................................................................
29
Secured by residential properties.........................................................................................................
30
1- to 4-family.......................................................................................................................................
31
FHA-insured or VA-guaranteed.................................................................................................
32
Conventional...................................................................................................................................
33
Multifamily...........................................................................................................................................
34
FHA-insured...................................................................................................................................
35
Conventional...................................................................................................................................
36
Secured by nonfarm nonresidential properties.................................................................................

189,637
33,147
2,102
108,065
102,576
5,862
96,713
5,489
333
5,156
46,323

151,369
27,973
1,566
87,056
82,686
5,199
77,487
4,370
257
4,113
34,773

124,154
21,812
1,440
72,748
69,326
4,368
64,958
3,442
151
3,271
28,155

27,215
6,161
127
14,308
13,360
831
12,529
948
106
843
6,619

38,268
5,174
536
21,009
19,890
663
19,227
1,119
76
1,043
11,550

37 Loans to financial institutions...................................................................................................................
38
REITs and mortgage companies in United S tates...........................................................................
39
Commercial banks in United S ta tes...................................................................................................
40
Banks in foreign countries.....................................................................................................................
41
Finance companies in United States...................................................................................................
42
Other financial institutions...................................................................................................................

43,498
5,109
7,110
9,842
9,817
11,620

40,586
4,810
5,620
9,403
9,568
11,184

26,492
3,645
3,945
5,235
6,119
7,547

14,094
1,164
1,675
4,168
3,449
3,637

2,912
299
1,490
439
248
436

43 Loans for purchasing or carrying securities...........................................................................................
44
Brokers and dealers in securities.........................................................................................................
45
Other.........................................................................................................................................................
46 Loans to finance agricultural production and other loans to farmers................................................
47 Commercial and industrial loan s.............................................................................................................

10,201
6,326
3,875
9,337
232,023

9,607
6,056
3,551
8,330
202,501

5,290
2,598
2,693
7,658
152,713

4,317
3,458
859
672
49,788

594
270
324
1,008
29,522

48 Loans to individuals for household, family, and other personal expenditures................................
49
Installment loans.....................................................................................................................................
50
Passenger automobiles.......................................................................................................................
51
Credit cards and related p lan s.........................................................................................................
52
Retail (charge account) credit card.............................................................................................
53
Check and revolving credit...........................................................................................................
54
Mobile h om es.....................................................................................................................................
55
Other installment loans.....................................................................................................................
56
Other retail consumer goods.........................................................................................................
57
Residential property repair and modernization.........................................................................
58
Other installment loans for household, family, and other personal expenditures................
59
Single-payment loan s.............................................................................................................................
60 All other loans.............................................................................................................................................

121,888
102,028
37,399
27,650
22,779
4,871
6,669
30,310
7,543
7,404
15,362
19,860
17,520

96,891
80,921
28,138
24,757
20,597
4,161
5,331
22,694
5,999
5,333
11,362
15,970
15,885

79,239
66,617
23,114
20,305
17,146
3,159
4,842
18,356
5,104
4,350
8,901
12,622
11,039

17,652
14,304
5,025
4,452
3,450
1,002
489
4,339
895
983
2,461
3,348
4,846

24,997
21,107
9,261
2,893
2,182
711
1,338
7,615
1,544
2,071
4,000
3,890
1,635

11,774
18,490
1,496
91,522
534
35,725
29,759
25,505

10,839
14,945
1,246
85,889
506
35,078
28,201
22,104

7,880
12,169
996
61,529
481
25,237
19,378
16,433

2,958
2,777
250
24,360
26
9,841
8,823
5,671

936
3,545
249
5,633
28
647
1,557
3,401

Total loans, gross, by category

61
62
63
64
65
66
67
68

Lease financing receivables.......................................................................................................................
Bank premises, furniture and fixtures, and other assets representing bank premises....................
Real estate owned other than bank prem ises.......................................................................................
All other assets...........................................................................................................................................
Investment in unconsolidated subsidiaries and associated companies...........................................
Customers’ liability on acceptances outstanding...............................................................................
Net due from foreign branches, foreign subsidiaries, Edge and agreement subsidiaries............
O ther.. . ; .................................................................................................................................................




Commercial Banks
4.21

A75

Continued
Member banks
Item

Insured
Total

National

State

Nonmember
insured

69 Total liabilities and equity capital?....................................................................................................

1,155,484

981,419

739,455

241,965

174,064

70 Total liabilities excluding subordinated debt.....................................................................................

1,072,159

911,133

686,131

225,002

161,026

71 Total deposits.............................................................................................................................................
72 Individuals, partnerships, and corporations.......................................................................................
73 U.S. government.....................................................................................................................................
74 States and political subdivisions in United States.............................................................................
All other...................................................................................................................................................
Foreign governments and official institutions.............................. .............................................
Commercial banks in United S ta tes...............................................................................................
Banks in foreign countries.................................................................................................................
Certified and officers’ checks, travelers checks, and letters of credit sold for cash....................

840,930
699,468
2,230
50,890
76,974
7,306
59,089
10,579
11,367

693,839
570,052
1,849
38,219
74,229
7,069
56,943
10,218
9,490

529,008
447,336
1,483
31,631
42,643
4,826
33,510
4,306
5,916

164,830
122,716
366
6,588
31,586
2,243
23,432
5,911
3,574

147,091
129,416
382
12,671
2,745
237
2,147
361
1,878

80 Demand deposits.........................................................................................................................................
81 Mutual savings banks.............................................................................................................................
82 Other individuals, partnerships, and corporations...........................................................................
83 U.S. government.....................................................................................................................................
84 States and political subdivisions in United States.............................................................................
85 All other...................................................................................................................................................
86
Foreign governments and official institutions...............................................................................
87
Commercial banks in United S ta tes...............................................................................................
88
Banks in foreign countries.................................................................................................................
89 Certified and officers’ checks, travelers checks, and letters of credit sold for cash....................

301,311
998
217,198
1,616
9,871
60,261
1,553
49,199
9,509
11,367

260,254
855
181,906
1,387
7,898
58,718
1,487
47,943
9,288
9,490

182,694
495
137,046
1,135
6,415
31,687
807
27,179
3,701
5,916

77,560
360
44,860
253
1,483
27,031
681
20,764
5,586
3,574

41,057
142
35,292
229
1,973
1,543
65
1,256
221
1,878

90 Time deposits...............................................................................................................................................
91 Mutual savings banks.............................................................................................................................
92 Other individuals, partnerships, and corporations...........................................................................
93 U.S. government.....................................................................................................................................
94 States and political subdivisions in United States.............................................................................
95 All other...................................................................................................................................................
96
Foreign governments and official institutions...............................................................................
97
Commercial banks in United S ta tes...............................................................................................
98
Banks in foreign countries.................................................................................................................

392,781
616
335,416
558
39,511
16,680
5,739
9,872
1,069

318,156
611
272,506
410
29,151
15,479
5,568
8,981
930

253,306
446
217,279
298
24,358
10,924
4,007
6,313
605

64,850
164
55,227
112
4,792
4,555
1,561
2,668
325

74,625
6
62,910
148
10,360
1,202
171
891
139

99 Savings deposits...........................................................................................................................................
100 Mutual savings banks.............................................................................................................................
101 Other individuals, partnerships, and corporations...........................................................................
102
Individuals and nonprofit organizations.........................................................................................
103
Corporations and other profit organizations.................................................................................
104 U.S. government.....................................................................................................................................

146,838
*
145,240
138,611
6,630
56
1,508
33
14
19
*

115,428
*
114,174
109,323
4,851
51
1,171
32
14
18
*

93,009
*
92,069
88,149
3,921
50
858
31
13
18
*

22,420
0
22,105
21,174
931
1
312
1
1
*
*

31,409
0
31,066
29,288
1,778
5
338
1
1
*
*

110 Federal funds purchased and securities sold under agreements to repurchase...............................
I l l Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed
m oney...................................................................................................................................................
112
Interest-bearing demand notes (note balances) issued to U.S. Treasury.....................................
113 Other liabilities for borrowed m on ey.................................................................................................
114 Mortgage indebtedness and liability for capitalized le a se s.................................................................

139,637

130,987

95,988

34,999

8,650

22,238
7,659
14,579
1,868

20,949
7,054
13,894
1,531

12,683
5,207
7,476
1,264

8,266
1,847
6,419
266

1,289
605
685
337

115 All other liabilities.....................................................................................................................................
116 Acceptances executed and outstanding...............................................................................................
117 Net due to foreign branches, foreign subsidiaries, Edge and agreement subsidiaries................
118 Other.........................................................................................................................................................

67,486
37,203
2,933
27,350

63,829
36,556
2,822
24,451

47,188
26,642
2,645
17,901

16,641
9,914
177
6,550

3,657
648
111
2,899

75

76
77
78
79

105

106
107
108
109

States and political subdivisions in United States.............................................................................
A lloth er...................................................................................................................................................
Foreign governments and official institutions...............................................................................
Commercial banks in United S ta tes...............................................................................................
Banks in foreign countries.................................................................................................................

119 Subordinated notes and debentures.........................................................................................................

5,403

4,286

3,093

1,193

1,117

120 Total equity capital?...........................................................................................................................

77,922

66,000

50,230

15,770

11,922

121 Time deposits of $100,000 or m ore.........................................................................................................
122 Certificates of deposit (CDs) in denominations of $100,000 or more...........................................
123 Other...................................................................... ...............................................................................
124 Savings deposits authorized for automatic transfer and NOW accounts...........................................
125 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26
weeks.....................................................................................................................................................
126 Demand deposits adjusted5.......................................................................................................................

215,542
199,461
16,081
31,706

182,147
167,573
14,574
24,956

140,067
128,874
11,192
20,354

42,080
38,698
3,382
4,602

33,395
31,888
1,507
6,750

114,538
174,823

88,515
137,674

74,019
105,755

14,496
31,919

26,023
37,149

127 Total standby letters of credit...................................................................................................................

38,093
1,799
908

36,189
1,751
565

24,893
1,187
394

11,295
564
170

1,904
48
344

Total assets...................................................................................................................................................
Cash and due from depository institutions.............................................................................................
Federal funds sold and securities purchased under agreements to resell.........................................
Total loans...................................................................................................................................................
Total d eposits.............................................................................................................................................
Time CDs in denominations of $100,000 or more in domestic offices.............................................
Federal funds purchased and securities sold under agreements to repurchase...............................
Other liabilities for borrowed m on ey.....................................................................................................

1,133,528
148,724
49,286
608,014
819,338
200,606
137,133
15,992

961,286
134,172
41,928
512,417
674,804
168,388
128,817
15,245

725,511
90,966
31,722
396,859
514,717
128,810
96,696
7,903

235,774
43,206
10,205
115,558
160,087
39,578
32,122
7,342

172,242
14,552
7,358
95,597
144,534
32,218
8,316
747

138 Number of b an k s.......................................................................................................................................

1,548

984

818

166

564

M emo

128

Conveyed to others through participation (included in standby letters of credit)........................

129 Holdings of commercial paper included in total gross loans...............................................................
Average fo r 30 calendar days (or calendar month) ending with report date

130
131
132
133
134
135
136
137

For notes see page A ll .




A76
4.22

Special Tables □ July 1981
DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1
/7
Consolidated Report of Condition; March 31, 1981
Millions of dollars
Member banks
Item

Insured
Total

National

State

Non­
member
insured

1,534,652

1,138,825

872,387

266,439

395,827

2 Cash and due from depository institutions...............................................................................................
3 Currency and coin (U.S. and foreign ).................................................................................................
4 Balances with Federal Reserve B a n k s.................................................................................................
5
Balances with other central banks.........................................................................................................
6
Demand balances with commercial banks in United States.............................................................
7 All other balances with depository institutions in United States and banks in foreign countries
8 Cash items in process of collection.......................................................................................................

192,691
17,283
27,449
104
47,843
21,605
78,406

159,083
12,804
27,152
104
31,016
12,888
75,119

110,017
10,243
20,331
104
18,535
10,632
50,172

49,066
2,561
6,821
12,481
2,256
24,947

33,608
4,480
298
0
16,827
8,717
3,287

9 Total securities, loans, and lease financing receivables.......................................................................

1,215,904

871,700

682,595

189,105

344,204

10 Total securities, book v a lu e.......................................................................................................................
11 U.S. Treasury...........................................................................................................................................
12 Obligations of other U.S. government agencies and corporations...................................................
13 Obligations of states and political subdivisions in United States.....................................................
14 All other securities...................................................................................................................................

327,720
103,813
61,062
144,906
17,938

217,756
65,969
36,380
100,351
15,057

169,465
51,017
29,780
78,350
10,317

48,292
14,952
6,600
22,001
4,740

109,963
37,844
24,682
44,556
2,881

15 Federal funds sold and securities purchased under agreements to resell...........................................

76,168

53,904

43,605

10,299

22,264

16 Total loans, gross.........................................................................................................................................
17 Less: Unearned income on lo a n s.............................................................................................................
18
Allowance for possible loan loss.....................................................................................................
19 E q u a ls: Loans, net.....................................................................................................................................

828,215
18,166
10,130
799,919

608,439
11,466
7,941
589,032

476,586
9,067
6,032
461,487

131,852
2,399
1,909
127,545

219,776
6,700
2,189
210,887

20 Real estate loans...........................................................................................................................................
21
Construction and land development.....................................................................................................
22
Secured by farmland.......... ...................................................................................................................
23
Secured by residential properties...........................................................................................................
24
1- to 4-family.........................................................................................................................................
25
Multifamily.............................................................................................................................................
26
Secured by nonfarm nonresidential properties...................................................................................

265,231
38,177
8,467
153,761
147,054
6,707
64,827

182,254
29,746
3,709
106,560
101,725
4,835
42,240

149,758
23,366
3,131
88,801
84,993
3,808
34,461

32,496
6,380
578
17,759
16,733
1,026
7,779

82,977
8,431
4,758
47,201
45,329
1,872
22,587

27
28
29
30

Loans to financial institutions.....................................................................................................................
Loans for purchasing or carrying securities.............................................................................................
Loans to finance agricultural production and other loans to farmers.................................................
Commercial and industrial lo a n s...............................................................................................................

45,048
10,758
31,336
279,195

41,290
9,800
16,797
221,739

27,128
5,456
14,607
169,190

14,163
4,344
2,191
52,549

3,758
958
14,538
57,455

31 Loans to individuals for household, family, and other personal expenditures.................................
32
Installment loans.......................................................................................................................................
33
Passenger automobiles.........................................................................................................................
34
Credit cards and related plan s...........................................................................................................
35
Mobile h om es.......................................................................................................................................
36
All other installment loans for household, family, and other personal expenditures................
37
Single-payment loans...............................................................................................................................
38 All other loans....................................................................................................................................... —

175,883
143,412
59,915
28,775
10,043
44,678
32,471
20,765

119,311
98,234
37,546
25,274
6,851
28,564
21,077
17,246

98,274
81,365
31,142
20,763
6,150
23,310
16,909
12,174

21,037
16,869
6,404
4,511
700
5,254
4,168
5,073

56,572
45,177
22,370
3,501
3,192
16,114
11,395
3,518

39 Lease financing receivables.........................................................................................................................
40 Bank premises, furniture and fixtures, and other assets representing bank premises......................
41 Real estate owned other than bank prem ises.........................................................................................
42 All other assets.............................................................................................................................................

12,098
26,039
2,077
97,940

11,008
18,057
1,453
88,532

8,038
14,806
1,164
63,805

2,970
3,251
289
24,727

1,090
7,982
624
9,408

Total loans, gross, by category




Commercial Banks
4.22

A ll

Continued
Member banks
Item

Insured
Total

National

State

Non­
member
insured

43 Total liabilities and equity capital?......................................................................................................

1,534,652

1,138,825

872,387

266,439

44 Total liabilities excluding subordinated debt.......................................................................................

1,417,908

1,054,678

807,381

247,297

363,231

45 Total d eposits.............................................. .................................................................................................
46 Individuals, partnerships, and corporations.........................................................................................
47 U.S. government.......................................................................................................................................
48 States and political subdivisions in United States...............................................................................
Certified and officers’ checks, travelers checks, and letters of credit sold for cash......................

1,175,089
999,899
3,008
79,730
78,150
14,301

831,842
694,824
2,168
49,323
74,840
10,687

645,520
552,573
1,763
41,062
43,180
6,941

186,323
142,251
405
8,261
31,659
3,746

343,247
305,075
841
30,407
3,310
3,614

51 Demand deposits............................................................................................................................................
52 Individuals, partnerships, and corporations.........................................................................................
53 U.S. government.......................................................................................................................................
54 States and political subdivisions in United States...............................................................................
55 All other.....................................................................................................................................................
56 Certified and officers’ checks, travelers checks, and letters of credit sold for cash......................

386,200
293,138
2,185
15,491
61,084
14,301

295,649
213,854
1,627
10,262
59,219
10,687

212,921
164,086
1,345
8,426
32,124
6,941

82,728
49,768
282
1,836
27,095
3,746

90,551
79,284
558
5,229
1,866
3,614

57 Time deposits.................................................................................................................................................
58 Other individuals, partnerships, and corporations.............................................................................
59 U.S. government.......................................................................................................................................
60 States and political subdivisions in United States...............................................................................
61 All other.....................................................................................................................................................

569,154
490,486
753
60,918
16,997

389,441
336,245
482
37,143
15,570

313,216
270,700
361
31,147
11,008

76,226
64,545
121
5,997
4,562

179,712
154,240
270
23,775
1,427

62 Savings deposits..............................................................................................................................................
63 Corporations and other profit organizations.......................................................................................
64 Other individuals, partnerships, and corporations.............................................................................
65 U.S. government.......................................................................................................................................
66 States and political subdivisions in United States...............................................................................
67 All other.....................................................................................................................................................

219,735
9,528
206,747
70
3,321
68

146,752
6,009
138,716
59
1,918
51

119,383
4,895
112,892
57
1,490
49

27,369
1,114
25,824
1
428
2

72,983
3,519
68,031
12
1,403
18

68 Federal funds purchased and securities sold under agreements to repurchase..................................
69 Interest-bearing demand notes (note balances) issued to U.S. Treasury and other liabilities for

144,621

133,682

98,300

35,382

10,939

borrowed m oney....................................................................................................................................
70 Mortgage indebtedness and liability for capitalized le a se s...................................................................
71 All other liabilities........................................................................................................................................

23,139
2,231
72,828

21,412
1,663
66,079

13,077
1,369
49,115

8,335
294
16,964

1,727
568
6,750

50

395,827

72 Subordinated notes and debentures...........................................................................................................

6,117

4,573

3,350

1,224

1,544

73 Total equity capital?.............................................................................................................................

110,627

79,574

61,656

17,918

31,053

74 Time deposits of $100,000 or m ore...........................................................................................................
75 Certificates of deposit (CDs) in denominations of $100,000 or more.............................................
76 Other............................................................................................................................................................
77 Savings deposits authorized for automatic transfer and no w accounts...............................................
78 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26

255,861
236,550
19,312
48,450

197,636
181,790
15,845
32,061

153,415
141,116
12,299
26,479

44,221
40,675
3,546
5,582

58,226
54,759
3,467
16,390

weeks........................................................................................................................................................

79 Demand deposits adjusted5.........................................................................................................................

198,908
255,592

123,061
170,459

103,050
133,789

20,011
36,670

75,847
85,133

80 Total standby letters of credit.....................................................................................................................

39,318

36,706

25,345

11,361

2,612

81 Total d ep osits................................................................................................................................................

1,149,443

811,028

629,653

181,375

338,415

82 Number of b an k s.........................................................................................................................................

14,433

5,445

4,444

1,001

8,988

M emo

Average f o r 30 calendar days (or calendar month) ending with report date

1. Effective Dec. 31, 1978, the report of condition was substantially revised for
commercial banks. Commercial banks with assets less than $100 million and with
domestic offices only were given the option to complete either the abbreviated or
the standard set of reports. Banks with foreign offices began reporting in greater
detail on a consolidated domestic and foreign basis. These tables reflect the varying
levels of reporting detail.
2. All transactions between domestic and foreign offices of a bank are reported
in “Net due from” and “Net due to” (lines 79 and 103). All other lines represent
transactions with parties other than the domestic and foreign offices of each bank.
Since these intra-office transactions are erased by consolidation, total assets and
liabilities are the sum of all except intra-office balances.
3. Foreign offices include branches in foreign countries and in U.S. territories
and possessions, subsidiaries in foreign countries, and all offices of Edge Act and
agreement corporations wherever located.




4. Equity capital is not allocated between the domestic and foreign offices of
banks with foreign offices.
5. Demand deposits adjusted equal demand deposits other than domestic com­
mercial interbank and U.S. government less cash items in process of collection.
6. Domestic offices exclude branches in foreign countries and in U.S. territories
and possessions, subsidiaries in foreign countries, and all offices of Edge Act and
agreement corporations wherever located.
7. This item contains the capital accounts of U.S. banks that have no Edge or
foreign operations and reflects the difference between domestic office assets and
liabilities of U.S. banks with Edge or foreign operations excluding the capital
accounts of their Edge or foreign subsidiaries.
N.A. This item is unavailable for all or some of the banks because of the lesser
detail available from banks without foreign offices, the inapplicability of certain
items to banks that have only domestic offices, and the absence of detail on a fully
consolidated basis for banks with foreign offices.

A78
4.30

Special Tables □ July 1981
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, Mar. 31, 19811
Millions of dollars
All states2

New York

Item
Total

Branches

Agencies

Branches

Agencies

Other states2

Cali­
fornia,
total3

Illinois,
branches
Branches

Agencies

1 Total assets4 .....................................................................

152,909

94,311

58,598

82,284

23,492

32,414

6,584

5,412

2,723

2 Cash and due from depository institutions......................
3 Currency and coin (U.S. and foreign )........................
4 Balances with Federal Reserve B a n k s........................
5 Balances with other central banks................................
6 Demand balances with commercial banks in United
States..........................................................................
7 All other balances with depository institutions in
United States and with banks in foreign
countries....................................................................
8
Time and savings balances with commercial banks
in United States....................................................
9
Balances with other depository institutions in
United States........................................................
10
Balances with banks in foreign countries................
11
Foreign branches of U.S. banks............................
12
Other banks in foreign countries..........................
13 Cash items in process of collection..............................

20,247
18
472
. 0

17,064
15
384
0

3,184
2
88
0

16,233
13
340
0

2,881
1
55
0

238
1
24
0

701
1
20
0

126
1
24
0

68
0
8
0

10,115

8,176

1,939

8,108

1,849

83

36

32

8

14 Total securities, loans, and lease financing receivables..

8,454

7,446

1,009

6,734

850

111

641

68

51

4,992

4,480

511

4,239

457

44

170

68

14

386
3,077
835
2,241
1,188

386
2,579
533
2,046
1,043

0
497
302
195
145

386
2,109
409
1,700
1,039

0
394
284
110
126

0
67
0
67
19

0
471
125
346
3

0
0
0
0
1

0
37
18
19
0

97,046

63,731

33,315

54,755

15,357

15,459

5,512

3,442

2,521

3,494
2,0%
1,399
15 Total securities, book v a lu e..............................................
16 U.S. Treasury..................................................................
902
2,158
1,256
17 Obligations of other U.S. government agencies and
340
82
corporations..............................................................258
18 Obligations of states and political subdivisions in
United States............................................................
179
177
2
817
580
237
19 Other bonds, notes, debentures, and corporate stock

1,835
1,119

1,279
852

121
50

176
58

84
79

0
0

20 Federal funds sold and securities purchased under
agreements to resell....................................................

75

237

20

5

2

0

151
489

1
189

2
49

23
90

2
0

0
0

5,513

3,435

2,078

3,289

1,614

457

114

31

7

4,836
677

2,970
464

1,866
212

2,855
434

1,409
205

449
7

84
30

31
0

7
0

One-day maturity or continuing contract....................
Securities purchased under agreements to resell...
Other..............................................................................
Other securities purchased under agreements to
resell..........................................................................

5,481
75
5,406

3,423
51
3,372

2,058
23
2,034

3,279
34
3,245

1,593
2
1,592

457
22
435

113
0
113

31
17
14

7
0
7

32

11

21

10

21

0

1

0

0

27 Total loans, gross................................................................
28 Less: Unearned income on loans......................................
29 E q u a ls: Loans, n e t............................................................

93,692
141
93,551

61,721
87
61,634

31,970
54
31,917

53,001
82
52,919

14,098
20
14,079

15,371
33
15,338

5,339
3
5,336

3,360
2
3,358

2,523
2
2,521

30 Real estate loans..................................................................
31 Loans to financial institutions............................................
32 Commercial banks in United S ta tes............................
33
U.S. branches and agencies of other foreign banks
34
Other commercial banks............................................
35
Banks in foreign countries..............................................
36
Foreign branches of U.S. banks................................
37
Other..............................................................................
38
Other financial institutions............................................

2,626
31,602
19,718
18,962
756
11,000
972
10,028
883

279
24,556
15,365
14,750
615
8,536
753
7,784
655

2,347
7,046
4,353
4,212
141
2,464
219
2,245
228

106
22,378
13,807
13,213
593
8,073
692
7,380
499

920
3,038
1,536
1,494
42
1,340
121
1,218
162

901
3,895
2,814
2,718
96
1,037
98
939
44

22
2,001
1,391
1,376
15
461
60
401
149

136
176
166
161
5
3
0
3
7

541
113
4
0
4
87
0
87
22

39 Loans for purchasing or carrying securities....................
40 Commercial and industrial lo a n s......................................
41
U.S. addressees (domicile)............................................
42
Non-U.S. addressees (domicile)....................................
43 Loans to individuals for household, family, and other
personal expenditures..................................................
44 All other loans......................................................................
45
Loans to foreign governments and official
institutions................................................................
46
Other..................................................................................

750
49,009
30,040
18,970

515
28,983
16,990
11,993

235
20,026
13,050
6,977

514
22,920
12,190
10,729

186
8,473
5,074
3,400

49
9,764
6,422
3,342

0
3,069
2,679
390

1
2,990
2,116
874

0
1,793
1,558
235

143
9,562

83
7,305

61
2,256

53
7,029

29
1,452

33
730

7
239

20
37

1
75

7,898
1,663

5,775
1,530

2,123
133

5,539
1,490

1,350
102

709
21

217
22

19
18

65
10

47 Lease financing receivables................................................
48 All other assets....................................................................
49
Customers’ liability on acceptances outstanding........
50
U.S. addressees (dom icile)........................................
51
Non-U.S. addressees (domicile)................................
52 Net due from related banking institutions5 ................
53
Other..................................................................................

1
30,102
8,462
4,257
4,205
16,893
4,747

1
10,082
4,542
2,639
1,904
2,282
3,258

0
20,020
3,920
1,619
2,301
14,612
1,489

1
8,007
4,475
2,601
1,874
569
2,963

0
3,640
2,982
860
2,122
0
658

0
16,260
883
728
155
14,605
772

0
256
46
33
12
0
210

0
1,812
21
4
17
1,713
78

0
126
56
32
24
6
65

By holder

21
22

Commercial banks in United S ta tes............................
Others................................................................................
By type

23
24
25
26

Total loans, gross, by category




U.S. Branches and Agencies
4.30

A79

Continued
All states2

New York

Item
Total

Branches

Agencies

Branches

Agencies

Other states2

Cali­
fornia,
total3

Illinois,
branches
Branches

Agencies

54 Total liabilities4 ................................................................

152,909

94,311

58,598

82,284

23,492

32,414

6,584

5,412

2,723

55 Total deposits and credit balances....................................
56
Individuals, partnerships, and corporations................
57
U.S. addressees (dom icile)........................................
Non-U.S. addressees (domicile)................................
58
59
U.S. government, states, and political subdivisions
in United States........................................................
60
All other............................................................................
61
Foreign governments and official institutions........
62
Commercial banks in United S ta tes........................
63
U.S. branches and agencies of other foreign
banks..................................................................
64
Other commercial banks in United States..........
65
Banks in foreign countries..........................................
66
Foreign branches of U.S. banks............................
67
Other banks in foreign countries..........................
Certified and officers’ checks, travelers checks,
68
and letters of credit sold for cash......................

44,611
25,676
22,670
3,007

40,366
24,813
22,486
2,327

4,245
863
184
680

35,790
20,557
18,405
2,151

3,323
236
106
129

771
504
61
442

1,239
1,062
949
114

3,328
3,186
3,125
60

160
132
23
110

116
18,818
2,761
6,775

116
15,437
2,512
5,411

0
3,381
249
1,364

27
15,206
2,409
5,343

0
3,087
71
1,349

0
267
177
1

2
175
81
63

88
55
23
5

0
28
0
15

1,272
5,503
3,022
75
2,947

1,255
4,156
2,700
72
2,628

17
1,347
321
2
319

1,200
4,143
2,678
72
2,605

2
1,347
258
1
257

0
0
60
2
59

55
9
5
0
5

0
5
18
0
18

15
0
3
0
3

6,260

4,813

1,447

4,777

1,409

29

26

10

9

69 Demand deposits..................................................................
70 Individuals, partnerships, and corporations................
71
U.S. addressees (dom icile)........................................
72
Non-U.S. addressees (domicile)................................
U.S. government, states, and political subdivisions
73
in United States........................................................
74 All other............................................................................
Foreign governments and official institutions........
75
76
Commercial banks in United S ta tes........................
77
U.S. branches and agencies of other foreign
banks..................................................................
Other commercial banks in United States..........
78
79
Banks in foreign countries..........................................
80
Certified and officers’ checks, travelers checks,
and letters of credit sold for cash......................

12,177
1,461
890
571

10,686
1,436
888
548

1,491
25
2
23

10,465
1,259
726
534

1,409
0
0
0

76
28
5
23

113
82
75
7

106
92
84
7

9
0
0
0

13
10,703
470
3,121

13
9,238
459
3,121

0
1,465
11
0

12
9,194
456
3,119

0
1,409
0
0

0
48
11
0

0
30
1
1

0
14
2
1

0
9
0
0

406
2,715
853

406
2,715
844

0
0
9

406
2,713
842

0
0
0

0
0
8

0
1
3

0
1
0

0
0
0

6,260

4,813

1,447

4,777

1,409

29

26

10

9

81 Time deposits........................................................................
82
Individuals, partnerships, and corporations................
83
U.S. addressees (dom icile)........................................
84
Non-U.S. addressees (domicile)................................
85 U.S. government, states, and political subdivisions
in United States........................................................
8 All other............................................................................
6
87
Foreign governments and official institutions........
88 Commercial banks in United S ta tes........................
U.S. branches and agencies of other foreign
89
banks..................................................................
90
Other commercial banks in United States..........
91
Banks in foreign countries..........................................

30,042
23,523
21,409
2,114

29,429
23,127
21,408
1,719

612
396
1
395

25,127
19,100
17,538
1,561

0
0
0
0

617
400
3
397

1,106
960
855
105

3,192
3,063
3,013
50

0
0
0
0

103
6,416
2,218
2,290

103
6,199
2,053
2,290

0
217
165
0

15
6,013
1,953
2,224

0
0
0
0

0
217
165
0

1
145
80
63

87
41
20
4

0
0
0
0

849
1,441
1,906

849
1,441
1,856

0
0
51

794
1,429
1,836

0
0
0

0
0
51

55
8
2

0
4
18

0
0
0

92 Savings deposits....................................................................
93 Individuals, partnerships, and corporations................
94
U.S. addressees (dom icile)........................................
95
Non-U.S. addressees (domicile)................................
% U.S. government, states, and political subdivisions
in United States........................................................
97 All other............................................................................

272
271
190
82

250
250
190
60

21
21
0
21

198
197
141
56

0
0
0
0

23
23
2
22

21
21
19
2

30
30
28
2

0
0
0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

98 Credit balances....................................................................
99 Individuals, partnerships, and corporations................
U.S. addressees (dom icile)........................................
Non-U.S. addressees (domicile)................................
U.S. government, states, and political subdivisions
in United States........................................................
103 All other............................................................................
104
Foreign governments and official institutions........
105
Commercial banks in United S ta tes........................
U.S. branches and agencies of other foreign
106
banks..................................................................
107
Other commercial banks in United States..........
108
Banks in foreign countries..........................................

2,120
420
181
240

0
0
0
0

2,120
420
181
240

0
0
0
0

1,914
236
106
129

54
52
51
0

0
0
0
0

0
0
0
0

152
133
23
110

0
1,699
72
1,364

0
0
0
0

0
1,699
72
1,364

0
0
0
0

0
1,678
71
1,349

0
3
1
0

0
0
0
0

0
0
0
0

0
18
0
15

17
1,347
262

0
0
0

17
1,347
262

0
0
0

2
1,347
258

0
0
1

0
0
0

0
0
0

15
0
3

100
101
102

For notes see page A78.




A80
4.30

Special Tables □ July 1981
Continued
All states2

New York

Item
Total

Other states2

Cali­
fornia,
total3

Illinois,
branches

Branches

Agencies

Branches

Agencies

11,707

6,717

4,990

6,034

2,158

2,443

10,221
1,486

5,973
743

4,248
742

5,315
719

1,736
422

One-day maturity or continuing contract....................
Securities sold under agreements to repurchase . . .
Other..............................................................................
Other securities sold under agreements to
repurchase................................................................

11,419
610
10,809

6,429
569
5,860

4,990
41
4,949

5,769
555
5,215

2,158
16
2,142

288

288

0

264

0

116 Other liabilities for borrowed m on ey..............................
117 Owed to b ank s................................................................
118
U.S. addressees (domicile)...... .................................
119
Non-U.S. addressees (domicile)................................
120 Owed to others.............................. .................................
121
U.S. addressees (dom icile)...... .................................
122
Non-U.S. addressees (domicile)................................

45,710
42,417
37,632
4,784
3,294
2,135
1,158

16,393
14,722
11,002
3,720
1,671
1,279
392

29,318
27,695
26,630
1,065
1,623
856
767

14,414
12,898
9,757
3,141
1,516
1,138
378

4,936
4,682
4,105
577
255
123
131

123 All other liabilities............................ ..................................
124 Acceptances executed and outstanding........................
125 Net aue to related banking institutions5 ......................
126
Other................................................ ..................................

50,880
9,291
37,780
3,809

30,835
4,642
23,339
2,854

20,045
4,649
14,441
955

26,046
4,565
18,868
2,613

13,076
3,088
9,622
366

29,354

28,787

567

24,573

24,556
4,799

24,073
4,714

482
85

20,103
4,470

17

13

4

128

122

6

109 Federal funds purchased and sold under agreement to
repurchase....................................................................

Branches

Agencies

543

139

390

2,408
36

519
24

138
1

105
285

2,443
25
2,418

519
0
519

139
14
125

390
0
390

0

24

0

0

24,295
22,937
22,472
466
1,357
733
624

1,391
1,365
788
576
26
20
6

587
459
456
2
128
121
7

88
77
55
22
11
0
11

4,905
1,500
2,848
557

3,410
57
3,176
177

1,357
20
1,274
63

2,085
61
1,992
32

0

571

1,081

3,131

0

0
0

486
85

896
185

3,071
60

0
0

5

0

4

3

5

0

77

0

6

17

27

0

By holder

110
I ll

Commercial banks in United S ta tes............................
Others................................................................................
By type

112
113
114
115

Memo
127 Time deposits of $100,000 or more ...................................
128 Certificates of deposit (CDs) in denominations of
$100,000 or m o r e ....................................................
129 Other..................................................................................
130 Savings deposits authorized for automatic transfer and
now accounts................................................................
131 Money market time certificates of $10,000 and less
than $100,000 with original maturities of 26 weeks
132 Time certificates of deposit in denominations of
$100,000 or more with remaining maturity of
more than 12 m onths..................................................
133
134
135
136
137
138
139
140

Acceptances refinanced with a U.S.-chartered bank . . .
Statutory or regulatory asset pledge requirement..........
Statutory or regulatory asset maintenance requirement
Commercial letters of credit..............................................
Standby letters of credit, to ta l..........................................
U.S. addressees (domicile)............................................
Non-U.S. addressees (domicile)....................................
Standby letters of credit conveyed to others through
participations (included in total standby letters of
credit)............................................................................

1,403

1,300

103

1,117

0

103

27

155

0

2,732
62,951
7,740
8,566
4,923
3,700
1,223

1,465
50,113
7,283
4,762
3,494
2,631
863

1,268
12,838
457
3,804
1,429
1,069
361

1,264
44,981
4,659
4,277
3,040
2,371
669

589
12,788
220
1,278
488
291
197

676
53
1
2,475
651
549
102

2
5,099
199
281
292
168
125

199
30
2,425
203
161
93
69

2
0
237
52
290
228
62

799

777

22

758

1

22

9

10

0

141 Holdings of commercial paper included in total gross
loans ..............................................................................
142 Holdings of acceptances included in total commercial
and industrial loans......................................................
143 Immediately available funds with a maturity greater
than one day (included in other liabilities for bor­
rowed m oney)..............................................................

28,613

9,002

19,610

7,876

3,312

16,259

858

269

39

144 Gross due from related banking institutions5 ................
145
U.S. addressees (dom icile)............................................
146
Branches and agencies in United States..................
147
In the same state as reporter................................
148
In other states..........................................................
149
U.S. banking subsidiaries6 ........................................
150 Non-U.S. addressees (domicile)....................................
151
Head office and non-U.S. branches and agencies..
152
Non-U.S. banking companies and offices................

55,764
22,095
21,886
592
21,295
209
33,669
31,793
1,876

22,059
5,972
5,849
69
5,780
124
16,087
14,379
1,708

33,705
16,123
16,038
523
15,515
85
17,582
17,414
168

18,280
3,437
3,323
50
3,273
114
14,843
13,154
1,689

14,388
1,981
1,946
0
1,945
35
12,407
12,274
134

19,171
14,093
14,045
513
13,532
48
5,078
5,055
23

1,237
242
234
0
234
8
995
976
18

2,542
2,293
2,292
19
2,273
1
249
248
0

146
49
47
9
38
2
97
86
11

153 Gross due to related banking institutions5......................
154 U.S. addressees (dom icile)............................................
155
Branches and agencies in United States..................
156
In the same state as reporter.............. ..............
157
In other states..........................................................
158
U.S. banking subsidiaries6 ........................................
159 Non-U.S. addressees (domicile)....................................
160
Head office and non-U.S. branches and agencies..
161
Non-U.S. banking companies and offices................

76,651
22,914
22,759
577
22,182
155
53,737
51,970
1,767

43,117
11,766
11,670
69
11,601
96
31,351
29,948
1,403

33,534
11,148
11,089
508
10,582
59
22,386
22,022
364

36,579
8,298
8,216
51
8,165
82
28,281
26,958
1,323

24,010
7,291
7,261
0
7,260
30
16,719
16,428
291

7,413
3,079
3,060
507
2,553
19
4,334
4,275
59

4,413
2,199
2,188
0
2,188
11
2,214
2,140
74

2,104
1,269
1,266
18
1,248
2
835
829
6

2,132
778
768
0
768
10
1,354
1,341
13




828

712

116

673

69

47

39

0

0

4,877

2,228

2,650

2,162

1,171

1,467

25

41

12

U.S. Branches and Agencies
4.30

A81

Continued
All states2

New York

Item
Total

Branches

Agencies

Branches

Agencies

Cali­
fornia,
total3

Other states3
Illinois,
branches
Branches

Agencies

A verage f o r 30 calendar days (or calendar month) ending
with report date

162 Total assets............................................................................
163 Cash and due from depository institutions......................
164 Federal funds sold and securities purchased under
agreements to resell....................................................
165 Total loans............................................................................
166 Loans to banks in foreign countries................................
167 Total deposits and credit balances....................................
168 Time CDs in denominations of $100,000 or m o re........
169 Federal funds purchased and securities sold under
agreements to repurchase..........................................
170 Other liabilities for borrowed m oney..............................

152,722
17,326

89,250
13,723

63,472
3,603

77,070
12,858

27,679
3,229

33,116
310

6,763
736

5,386
126

2,708
67

5,887
89,549
11,159
42,835
24,836

3,896
58,335
8,790
39,305
24,288

1,991
31,214
2,369
3,530
548

3,729
49,859
8,331
34,735
20,335

1,607
13,584
1,296
2,618
0

378
15,263
1,001
761
466

133
5,273
456
1,235
926

33
3,186
3
3,326
3,024

5
2,383
72
159
84

10,433
45,036

6,031
16,108

4,402
28,928

5,236
14,053

1,432
4,531

2,625
24,308

649
1,477

145
577

346
89

171 Number of reports filed7 ....................................................

331

154

177

92

57

94

32

28

28

1. Data are aggregates of categories reported on the quarterly form FFIEC 002,
“Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks.”
This form was first used for reporting data as of June 30, 1980. From November
1972 through May 1980, U.S. branches and agencies of foreign banks had filed a
monthly FR 886a report. Aggregate data from that report were available through
the Federal Reserve statistical release G .ll, last issued on July 10, 1980. Data in
this table and in the G .ll tables are not strictly comparable because of differences
in reporting panels and in definitions of balance sheet items.
2. Includes the District of Columbia.
3. Agencies account for virtually all of the assets and liabilities reported in
California.
4. Total assets and total liabilities include net balances, if any, due from or due
to related banking institutions in the United States and in foreign countries (see
footnote 5). On the former monthly branch and agency report, avail­




able through the G .ll statistical release, gross balances were included in total assets
and total liabilities. Therefore, total asset and total liability figures in this table are
not comparable to those in the G .ll tables.
5. “Related banking institutions” includes the foreign head office and other U.S.
and foreign branches and agencies of the bank, the bank’s parent holding company,
and majority-owned banking subsidiaries of the bank and of its parent holding
company (including subsidiaries owned both directly and indirectly). Gross amounts
due from and due to related banking institutions are shown as memo items.
6. “U.S. banking subsidiaries” refers to U.S. banking subsidiaries majorityowned by the foreign bank and by related foreign banks and includes U.S. offices
of U.S.-chartered commercial banks, of Edge Act and Agreement corporations,
and of New York State (Article XII) investment companies.
7. In some cases two or more offices of a foreign bank within the same met­
ropolitan area file a consolidated report.

A82

Federal Reserve Board of Governors
P a u l A. V o l c k e r , C hairm an
F r e d e r i c k H . S c h u l t z , Vice Chairm an

O f f ic e

of

B oard M

em bers

H e n r y C. W a l l i c h
J. C h a r l e s P a r t e e

O f f ic e o f S t a f f D ir e c t o r f o r
M o n e t a r y a n d F in a n c ia l P o l ic y

J o s e p h R . C o y n e , A ssistant to the B oard
D o n a l d J. W i n n , A ssistant to the B oard
A n t h o n y F . C o l e , Special A ssistant to the B oard
W il l i a m R . M a l o n i , Special A ssistan t to the B oard
F r a n k O ’B r i e n , J r ., Special A ssistant to the B oard
J o s e p h S . S i m s , Special A ssistant to the B oard
J a m e s L . S t u l l , M anager, Operations R eview Program

S t e p h e n H . A x i l r o d , S taff D irector
E d w a r d C . E t t i n , D eputy S ta ff D irector
M u r r a y A l t m a n n , A ssistant to the Board
P e t e r M . K e i r , A ssistant to the B oard
S t a n l e y J. S i g e l , A ssistant to the B oard
N o r m a n d R . V . B e r n a r d , Special A ssistant to the B oard

Legal D

D iv is io n

iv is io n

M ic h a e l B r a d f i e l d , General Counsel
R o b e r t E. M a n n i o n , D eputy General Counsel
J. V ir g il M a t t i n g l y , J r ., A ssociate General Counsel
G il b e r t T . S c h w a r t z , A ssociate General Counsel
M ic h a e l E. B l e i e r , A ssistant General Counsel
C o r n e l iu s K . H u r l e y , J r ., A ssistan t General Counsel
M a r y e l l e n A . B r o w n , A ssistan t to the General Counsel

O f f ic e

o f th e

Secretary

W il l ia m W . W i l e s , Secretary
B a r b a r a R . L o w r e y , A ssistan t Secretary
J a m e s M c A f e e , A ssistant Secretary
*D . M ic h a e l M a n i e s , A ssistan t Secretary

D

iv is io n o f

and

Com

of

R esearch

and

S

t a t is t ic s

J a m e s L . K i c h l i n e , D irector
J o s e p h S . Z e i s e l , D eputy D irector
M i c h a e l J. P r e l l , A ssociate D irector
R o b e r t A . E i s e n b e i s , Senior D eputy A ssociate D irector
J a r e d J. E n z l e r , Senior D eputy A ssociate D irector
E l e a n o r J. S t o c k w e l l , Senior D eputy A ssociate D irector
D o n a l d L . K o h n , D eputy A ssociate D irector
J. C o r t l a n d G . P e r e t , D eputy A ssociate D irector
H e l m u t F . W e n d e l , D eputy A ssociate D irector
M a r t h a B e t h e a , A ssistant D irector
J o e M . C l e a v e r , A ssistant D irector
R o b e r t M . F i s h e r , A ssistant D irector
D a v i d E . L i n d s e y , A ssistant D irector
L a w r e n c e S l i f m a n , A ssistant D irector
F r e d e r ic k M . S t r u b l e , A ssistant D irector
S t e p h e n P . T a y l o r , A ssistan t D irector
L e v o n H . G a r a b e d i a n , Assistant Director (Administration)

C o nsu m er
A f f a ir s

m u n it y

D iv is io n
J a n e t O . H a r t , D irector
G r i f f it h L . G a r w o o d , D eputy D irector
J e r a u l d C . K l u c k m a n , A ssociate D irector
G l e n n E . L o n e y , A ssistan t D irector
D o l o r e s S . S m i t h , A ssistant D irector

D iv is io n o f B a n k in g
S u p e r v is io n a n d R e g u l a t io n
J o h n E . R y a n , Director
F r e d e r ic k R . D a h l , A ssociate D irector
W il l i a m T a y l o r , A ssociate D irector
J a c k M . E g e r t s o n , A ssistant D irector
R o b e r t A . J a c o b s e n , A ssistan t D irector
D o n E . K l i n e , A ssistant D irector
R o b e r t S . P l o t k i n , A ssistant D irector
T h o m a s A . S i d m a n , A ssistan t D irector
S a m u e l H . T a l l e y , A ssistant D irector
L a u r a M . H o m e r , Securities Credit Officer




of

In t e r n a t io n a l F in a n c e

E d w i n M . T r u m a n , D irector
R o b e r t F . G e m m i l l , A ssociate D irector
C h a r l e s J. S i e g m a n , A ssociate Director
L a r r y J. P r o m i s e l , Senior D eputy A ssociate D irector
D a l e W . H e n d e r s o n , D eputy A ssociate D irector
S a m u e l P i z e r , S taff A dviser
R a l p h W . S m i t h , J r ., A ssistan t D irector

A83

and Official Staff
L yle E. G ram ley

N ancy H . T eeters
E m m e t t J. R ic e

O f f ic e

O f f ic e

of

S taff D

ir e c t o r f o r

M

anagem ent

J o h n M. D e n k l e r , S taff D irector
E d w a r d T. M u l r e n i n , A ssistant S ta ff D irector
J o sep h W . D a n i e l s , S r ., D irector o f Equal Em ploym ent

of

Federal R

S

taff

D

eserve

ir e c t o r f o r

Ba

n k

A

c t iv it ie s

T h e o d o r e E. A l l i s o n , S taff D irector
H a r r y A . G u in t e r , A ssistant D irector fo r Contingency

Planning

Opportunity
D
D iv is io n

of

D

ata

P r o c e s s in g

C h a r le s L. H a m p to n , D irector
B r u c e M. B e a r d s l e y , A ssociate D irector
U y l e s s D . B l a c k , D eputy D irector
G le n n L. C u m m in s, A ssistant D irector
N e a l H . H i l l e r m a n , A ssistan t D irector
C. W illia m S c h l e i c h e r , J r ., A ssistan t D irector
R o b e r t J. Z e m e l, A ssociate D irector

D iv is io n

of

P erson n el

D a v id L. S h a n n o n , D irector
J o h n R. W eis, A ssistant D irector
C h a r le s W . W o o d , A ssistant D irector

O f f ic e

o f th e

C ontroller

J o h n K a k a l e c , Controller
G e o r g e E. L i v i n g s t o n , A ssistant Controller

D iv is io n

of

S

upport

S e r v ic e s

D o n a l d E. A n d e r s o n , D irector
W a l t e r W . K r e im a n n , A ssociate D irector
R o b e r t E. F r a z i e r , A ssistan t D irector

*0n loan from the Federal Reserve Bank of Kansas City.




iv is io n o f

Federal R

eserve

B a n k O p e r a t io n s
C ly d e H . F a r n s w o r t h , J r ., D irector
L o r in S. M e e d e r , A ssociate D irector
R a y m o n d L . T e e d , A ssociate D irector
W a l t e r A l t h a u s e n , A ssistant D irector
C h a r l e s W. B e n n e t t , A ssistant D irector
R ic h a r d B. G r e e n , A ssistant D irector
E l l i o t t C. M c E n t e e , A ssistant D irector
D a v id L. R o b in s o n , A ssistant D irector
P .D . R in g , A dviser

A84

Federal Reserve Bulletin □ July 1981

FOMC and Advisory Councils
F e d e r a l O p e n M a r k e t C o m m it t e e
P a u l A . V o l c k e r , Chairman
E d w a r d G. B o e h n e
R obert H . B o y k in
E . G er a l d C orr ig an

A n t h o n y M . S o l o m o n , Vice Chairman
L yle E. G ram ley
S ila s K e e h n
J. C h a r l e s P arte e
E m m e t t J. R ice

S te p h e n H . A x i l r o d , S ta ff D irector
M u r r a y A l t m a n n , Secretary
N o r m a n d R. V . B e r n a r d , A ssistan t Secretary
N a n c y M. S t e e l e , D eputy A ssistan t Secretary
M i c h a e l B r a d f i e l d , General Counsel
Jam es H . O lt m a n , D eputy General Counsel
R o b e r t E. M a n n io n , A ssistan t General Counsel
Jam es L . K i c h l i n e , Econom ist
J o sep h E. B u r n s , A ssociate Econom ist

F r e d e r ic k H . S c h u l t z
N a n c y H . T e et e r s
H en r y C. W a l l ic h

Jo h n P. D a n f o r t h , A ssociate Econom ist
R ic h a r d G. D a v is , A ssociate E conom ist
E d w a r d C. E t t i n , A ssociate Econom ist
P e te r M . K e ir , A ssociate E conom ist
D o n a l d J. M u l l i n e a u x , A ssociate Econom ist
M ic h a e l J. P r e l l , A ssociate Econom ist
K ar l L . S c h e l d , A ssociate Econom ist
E d w in M. T r u m a n , A ssociate Econom ist
Jo seph S. Z e is e l , A ssociate Econom ist

P e t e r D . S t e r n l ig h t , M anager fo r D om estic Operations, System Open M arket A ccount
S cott E . P a r d e e , M anager fo r Foreign Operations, System Open M arket A ccount

Fe d e r a l A d v is o r y C o u n c il
M e r le
C h au n cey

E. G i l l i a n d , Fourth District, President
E. S c h m id t , Twelfth District, Vice President
R o b e r t M . S u r d a m , S even th D istrict
R o n a l d T e r r y , Eighth D istrict
C l a r e n c e G. F r a m e , N in th D istrict
G o r d o n E . W e l l s , T enth D istrict
T. C. F r o s t , J r ., E leven th D istrict

W ill ia m S. E d g e r l y , First D istrict
D o n a l d C. P l a t t e n , S econ d D istrict
Jo h n H . W a l t h e r , Third D istrict
J. O w e n C o l e , Fifth D istrict
R obert S t r ic k l a n d , Sixth D istrict

H e r be r t V . P r o c h n o w , Secretary
W il l ia m J. K o r sv ik , A ssociate Secretary

C o n s u m e r A d v is o r y C o u n c il
R a lp h J. R o h n e r , Washington, D.C., Chairman
C h a r l o t t e H . S c o t t , Charlottesville, Virginia, Vice Chairman
A r t h u r F. B o u t o n , Little Rock, Arkansas
J u l i a H . B o y d , Alexandria, Virginia
E l l e n B r o a d m a n , Washington, D.C.
Ja m es L . B r o w n , M ilw au k ee, W isconsin
M ark E . B u d n it z , A tlanta, G eorgia
Joseph N . C u g i n i , W esterly, R hode Island
R ic h a r d S. D ’A g o s t in o , Philadelphia, P en nsylvan ia
S u sa n P ier so n D e W i t t , Springfield, Illinois
Jo a n n e S. F a u l k n e r , N e w H aven , C on n ecticu t
L u t h e r G a t l in g , N e w Y ork, N e w Y ork
V e r n a r d W . H e n l e y , R ichm ond, Virginia
Ju a n J e su s H in o jo sa , M cA llen , T exas
S h ir le y T. H o so i , L os A n g eles, California
G eorge S. I r v in , D en ver, C olorado




F. T h o m a s J u s t e r , A nn A rbor, M ichigan
R ic h a r d F. K e r r , C incinnati, O hio
H a r v e y M . K u h n l e y , M inneapolis, M in n esota
T h e R e v . R o b e r t J. M c E w e n , S .J ., C hestnut H ill,
M assach u setts
S t a n L . M u l a r z , C h icago, Illinois
W il l ia m J. O ’C o n n o r , B uffalo, New Y ork
M a r g a r e t R e i l l y - P e t r o n e , U pper M ontclair, New Jersey
R e n e R e ix a c h , R och ester, New Y ork
F l o r e n c e M. R ic e , New Y ork, New York
H e n r y B . S c h e c h t e r , W ashington, D.C.
P e t e r D. S c h e l l i e , Washington, D.C.
N a n c y Z. S p il lm a n , L o s Angeles, California
R ic h a r d A. V a n W i n k le , Sal L ake City, U tah
M a r y W . W a l k e r , Monroe, Georgia

A85

Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK, Chairman
branch, orfacility
Zip
Deputy Chairman
BOSTON*................... 02106 Robert P. Henderson
Thomas I. Atkins

President
First Vice President
Frank E. Morris
James A. McIntosh

Robert H. Knight, Esq.
Boris Yavitz
Frederick D. Berkeley, III

Anthony M. Solomon
Thomas M. Timlen

PHILADELPHIA........ 19105

John W. Eckman
Jean A. Crockett

Edward G. Boehne
Richard L. Smoot

CLEVELAND* .......... 44101

J. L. Jackson
William H. Knoell
Martin B. Friedman
Milton G. Hulme, Jr.

Willis J. Winn
Walter H. MacDonald

Maceo A. Sloan
Steven Muller
Joseph H. McLain
Naomi G. Albanese

Robert P. Black
Jimmie R. Monhollon

Vice President
in charge of branch

NEW YORK* .............10045
Buffalo......................14240

Cincinnati................. 45201
Pittsburgh................. 15230
RICHMOND* .............23219
Baltimore................. 21203
Charlotte ................. 28230

Culpeper Communications
and Records Center 22701

ATLANTA ................. 30301
Birmingham .............35202
Jacksonville .............32231
Miami ......................33152
Nashville ................. 37203
New Orleans.............70161
CHICAGO*................. 60690
Detroit......................48231
ST. LOUIS ................. 63166
Little Rock...............72203
Louisville................. 40232
Memphis ................. 38101
MINNEAPOLIS.......... 55480
Helena......................59601
KANSAS CITY .......... 64198
Denver......................80217
Oklahoma City.......... 73125
Omaha......................68102
DALLAS ................... 75222
El Paso......................79999
Houston................... 77001
San Antonio .............78295
SAN FRANCISCO......94120
Los Angeles .............90051
Portland................... 97208
Salt Lake City.......... 84130
Seattle......................98124

John T. Keane

Robert E. Showaiter
Harold J. Swart
Robert D. McTeer, Jr.
Stuart P. Fishbume
Albert D. Tinkelenberg

William A. Fickling, Jr.
John H. Weitnauer, Jr.
Louis J. Willie
Jerome P. Keuper
Roy W. Vandegrift, Jr.
John C. Bolinger, Jr.
Horatio C. Thompson

William F. Ford
Robert P. Forrestal

John Sagan
Stanton R. Cook
Herbert H. Dow

Silas Keehn
Daniel M. Doyle

Armand C. Stalnaker
William B. Walton
E. Ray Kemp, Jr.
Sister Eileen M. Egan
Patricia W. Shaw

Lawrence K. Roos
Donald W. Moriarty, Jr.

Stephen F. Keating
William G. Phillips
Norris E. Hanford

E. Gerald Corrigan
Thomas E. Gainor

Paul H. Henson
Doris M. Drury
Caleb B. Hurtt
Christine H. Anthony
Robert G. Lueder

Roger Guffey
Henry R. Czerwinski

Gerald D. Hines
John V. James
Josefina A. Salas-Porras
Jerome L. Howard
Lawrence L. Crum

Robert H. Boykin
William H. Wallace

Cornell C. Maier
Caroline L. Ahmanson
Harvey A. Proctor
John C. Hampton
Wendell J. Ashton
George H. Weyerhaeuser

John J. Balles
John B. Williams

Hiram J. Honea
Charles D. East
F. J. Craven, Jr.
Jeffrey J. Wells
James D. Hawkins
William C. Conrad
John F. Breen
Donald L. Henry
Robert E. Matthews
Betty J. Lindstrom
Wayne W. Martin
William G. Evans
Robert D. Hamilton

Joel L. Koonce, Jr.
J. Z. Rowe
Thomas H. Robertson

Richard C. Dunn
Angelo S. Carella
A. Grant Holman
Gerald R. Kelly

♦Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016;
Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.




A86

Federal Reserve Board Publications
Copies are available from PUBLICATIONS SERVICES,
Room MP-510, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551. When a charge is indicat­
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T h e F e d e r a l R e se r v e S y ste m — P u rp o ses a n d F u n c ­
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A n n u a l R e po r t .
F e d e r a l R e s e r v e B u l l e t i n . Monthly. $20.00 per year or

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B a n k in g a n d M o n e t a r y S t a t i s t i c s . 1914-1941. (Reprint
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B a n k in g a n d M o n e t a r y S t a t i s t i c s , 1941-1970. 1976.
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F e d e r a l R e s e r v e M e a s u r e s o f C a p a c it y a n d C a p a c it y
U t i l i z a t i o n . 1978. 40 pp. $1.75 each; 10 or m ore to on e
address, $1.50 each .
T h e B a n k H o l d i n g C o m p a n y M o v e m e n t t o 1978: A
C o m p en d iu m . 1978. 289 pp. $2.50 each; 10 or m ore to
on e ad d ress, $2.25 each .
Im p r o v in g t h e M o n e t a r y A g g r e g a t e s : S t a f f P a p e r s.
1978. 170 pp. $4.00 each; 10 or m ore to on e address,
$3.75 each.
1977 C o n s u m e r C r e d i t S u r v e y . 1978. 119 pp. $2.00 each .
F l o w o f F u n d s A c c o u n t s . 1949-1978. 1979. 171 pp. $1.75
each; 10 or m ore to on e ad d ress, $1.50 each.
I n t r o d u c t io n t o F l o w o f F u n d s . 1980. 68 pp. $1.50 each;

10 or more to one address, $1.25 each.
P u b lic P o l i c y a n d C a p i t a l F o r m a t io n . 1981. 326 pp.
$13.50 each .
N ew M o n e ta r y C o n t r o l P ro ced u res: F e d e r a l R e­
s e r v e S t a f f S t u d y , 1981.

A87

C o n s u m e r E d u c a t io n P a m p h l e t s
Short pam phlets suitable fo r classroom use. Multiple
copies available without charge.

Alice in Debitland
The Board of Governors of the Federal Reserve System
Consumer Handbook To Credit Protection Laws
The Equal Credit Opportunity Act and . . . Age
The Equal Credit Opportunity Act and . . . Credit Rights in
Housing
The Equal Credit Opportunity Act and . . . Doctors, Law­
yers, Small Retailers, and Others Who May Provide
Incidental Credit
The Equal Credit Opportunity Act and . . . Women
Fair Credit Billing
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Federal Reserve Glossary
How to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You Use A Credit Card
Truth in Leasing
U.S. Currency
What Truth in Lending Means to You
S t a f f S t u d ie s
Studies and papers on econom ic and financial subjects
that are o f general interest.

Sum m aries Only P rin ted in the Bulletin
R equests to obtain single copies o f the fu ll text or to be
added to the mailing list fo r the series m ay be sent to
Publications Services.
T ie -in s B e t w e e n t h e G r a n t in g o f C r e d i t a n d S a l e s o f
I n s u r a n c e b y B a n k H o l d i n g C o m p a n ies a n d O t h e r
L e n d e r s , by Robert A. Eisenbeis and Paul R. Schweit­

zer. Feb. 1979. 75 pp.
M e a s u r e s o f C a p a c it y U t i l i z a t i o n : P r o b le m s a n d
T a s k s, by Frank de Leeuw, Lawrence R. Forest, Jr.,
Richard D. Raddock, and Zoltan E . Kenessey. July

1979. 264 pp.




T h e G N M A - G u a r a n te e d P a s s t h r o u g h S e c u r i t y : M a r ­
k e t D e v e lo p m e n t a n d I m p lic a t io n s f o r t h e
G r o w th a n d S t a b ilit y o f H om e M o r tg a g e L e n d ­
in g , by D avid F. S eid ers. D ec. 1979. 65 pp.
F o r e ig n O w n e r s h ip a n d t h e P e r f o r m a n c e o f U.S.
B a n k s , by James V. Houpt, July 1980. 27 pp.
P e r fo r m a n c e a n d C h a r a c t e r is tic s o f E d g e C o rp o ra ­
t i o n s , by James V. Houpt. Feb. 1981. 56 pp.
B a n k in g S t r u c t u r e a n d P e r f o r m a n c e a t t h e S t a t e
L e v e l D u r in g t h e 197 0 s, by Stephen A. Rhoades.

Mar.

1981.

26 pp.

R e p r in t s
M ost o f the articles reprinted do not exceed 12 pages.

Measures of Security Credit. 12/70.
Revision of Bank Credit Series. 12/71.
Assets and Liabilities of Foreign Branches of U.S. Banks.
2/72.
Bank Debits, Deposits, and Deposit Turnover—Revised Se­
ries. 7/72.
Rates on Consumer Instalment Loans. 9/73.
New Series for Large Manufacturing Corporations. 10/73.
The Structure of Margin Credit. 4/75.
Industrial Electric Power Use. 1/76.
Revised Series for Member Bank Deposits and Aggregate
Reserves. 4/76.
Industrial Production—1976 Revision. 6/76.
Federal Reserve Operations in Payment Mechanisms: A
Summary. 6/76.
The Federal Budget in the 1970’s. 9/78.
Redefining the Monetary Aggregates. 1/79.
Implementation of the International Banking Act. 10/79.
Perspectives on Personal Saving. 8/80.
The Impact of Rising Oil Prices on the Major Foreign
Industrial Countries. 10/80.
Federal Reserve and the Payments System: Upgrading Elec­
tronic Capabilities for the 1980s. 2/81.
U.S. International Transactions in 1980. 4/81.

Survey of Finance Companies, 1980. 5/81.

A88

Index to Statistical Tables
R eferences are to p a g e s A -3 through A-81 although the prefix “A ” is o m itte d in this index

ACCEPTANCES, bankers, 10, 23, 25
Agricultural loans, commercial banks, 18, 19, 20, 24
Assets and liabilities (See also Foreigners)
Banks, by classes, 17, 18-21, 27, 72-77
Domestic finance companies, 37
Federal Reserve Banks, 11
Foreign banks, U.S. branches and agencies, 78-81
Nonfinancial corporations, current, 36
Automobiles
Consumer installment credit, 40, 41
Production, 46, 47
BANKERS balances, 17, 18-20, 72, 74, 76
(See also Foreigners)
Banks for Cooperatives, 33
Bonds (See also U.S. government securities)
New issues, 34
Yields, 3
Branch banks, 15, 21, 54, 78-81
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 36
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 44
Capital accounts
Banks, by classes, 17, 73, 75, 77
Federal Reserve Banks, 11
Central banks, 66
Certificates of deposit, 21, 25
Commercial and industrial loans
Commercial banks, 15, 24
Weekly reporting banks, 18-21, 22
Commercial banks
Assets and liabilities, 3, 15, 17, 18-21, 68-71, 72-77
Business loans, 24
Commercial and industrial loans, 22, 24
Consumer loans held, by type, 40, 41
Loans sold outright, 21
Nondeposit funds, 16
Number, by classes, 17, 73, 75, 77
Real estate mortgages held, by holder and property, 39
Commercial paper, 3, 23, 25, 37
Condition statements (See Assets and liabilities)
Construction, 44, 48
Consumer installment credit, 40, 41
Consumer prices, 44, 49
Consumption expenditures, 50, 51
Corporations
Profits and their distribution, 35
Security issues, 34, 63
Cost of living (See Consumer prices)
Credit unions, 27, 40, 41
Currency and coin, 5, 17, 72, 74, 76
Currency in circulation, 4, 13
Customer credit, stock market, 26
DEBITS to deposit accounts, 12
Debt (See specific types of debt or securities)
Demand deposits
Adjusted, commercial banks, 12, 14
Banks, by classes, 17, 18-21, 73, 75, 77
Ownership by individuals, partnerships, and
corporations, 23



Demand deposits—Continued
Subject to reserve requirements, 14
Turnover, 12
Depository institutions
Reserve requirements, 8
Reserves, 3, 4, 5, 14
Deposits (See also specific types)
Banks, by classes, 3, 17, 18-21, 27, 68-71, 73, 75, 77
Federal Reserve Banks, 4, 11
Turnover, 12
Discount rates at Reserve Banks (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 44, 45
Eurodollars, 25
FARM mortgage loans, 39
Farmers Home Administration, 39
Federal agency obligations, 4, 10, 11, 12, 32
Federal and federally sponsored credit agencies, 33
Federal finance
Debt subject to statutory limitation and types and
ownership of gross debt, 30
Receipts and outlays, 28, 29
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 3, 6, 18, 19, 20, 25, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 38, 39
Federal Housing Administration, 33, 38, 39
Federal Intermediate Credit Banks, 33
Federal Land Banks, 33, 39
Federal National Mortgage Association, 33, 38, 39
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U.S. government securities held, 4, 11, 12, 30, 31
Federal Reserve credit, 4, 5, 11, 12
Federal Reserve notes, 11
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 37
Business credit, 37
Loans, 18, 19, 20, 40, 41
Paper, 23, 25
Financial institutions, loans to, 18, 19, 20
Float, 4
Flow of funds, 42, 43
Foreign
Banks, assets and liabilities of U.S. branches and
agencies, 78-81
Currency operations, 11
Deposits in U.S. banks, 4, 11, 18, 19, 20
Exchange rates, 66
Trade, 53
Foreigners
Claims on, 54, 56, 59, 60, 61, 65
Liabilities to, 21, 54-58, 62-64
GOLD
Certificates, 11
Stock, 4, 53

A89

Government National Mortgage Association, 33, 38, 39
Gross national product, 50, 51
HOUSING, new and existing units, 48
INCOME, personal and national, 44, 50, 51
Industrial production, 44, 46
Installment loans, 40, 41
Insurance companies, 27, 30, 31, 39
Insured commercial banks, 68-71
Interbank loans and deposits, 17
Interest rates
Bonds, 3
Business loans of banks, 24
Federal Reserve Banks, 3, 7
Foreign countries, 66
Money and capital markets, 3, 25
Mortgages, 3, 38
Prime rate, commercial banks, 24
Time and savings deposits, 9, 71
International capital transactions of the United States,
54-65
International organizations, 54-59, 62-65
Inventories, 50
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 17, 27
Commercial banks, 3, 15, 17, 18-20, 72, 74, 76
Federal Reserve Banks, 11, 12
Life insurance companies, 27
Savings and loan associations, 27
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 17, 18— 27
21,
Commercial banks, 3, 15, 17, 18-21, 22, 24, 72, 74, 76
Federal Reserve Banks, 3, 4, 5, 7, 11, 12
Insurance companies, 27, 39
Insured or guaranteed by United States, 38, 39
Savings and loan associations, 27
MANUFACTURING
Capacity utilization, 44
Production, 44, 47
Margin requirements, 26
Member banks
Assets and liabilities, by classes, 17
Borrowing at Federal Reserve Banks, 5, 11
Federal funds and repurchase agreements, 6
Reserve requirements, 8
Reserves and related items, 14
Mining production, 47
Mobile home shipments, 48
Monetary aggregates, 3, 14
Money and capital market rates (See Interest rates)
Money stock measures and components, 3, 13
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 3, 9, 18-20, 27, 30, 31, 39
NATIONAL defense outlays, 29
National income, 50
OPEN market transactions, 10
PERSONAL income, 51
Prices
Consumer and producer, 44, 49
Stock market, 26
Prime rate, commercial banks, 24
Production, 44, 46
Profits, corporate, 35



REAL estate loans
Banks, by classes, 18-20, 27, 29
Life insurance companies, 27
Mortgage terms, yields, and activity, 3, 38
Type of holder and property mortgaged, 39
Repurchase agreements and federal funds, 6, 18,
19, 20
Reserve requirements, 8
Reserves
Commercial banks, 17, 72, 74, 76
Depository institutions, 3, 4, 5, 14
Federal Reserve Banks, 11
Member banks, 14
U.S. reserve assets, 53
Residential mortgage loans, 38
Retail credit and retail sales, 40, 41, 44
SAVING
Flow of funds, 42, 43
National income accounts, 51
Savings and loan assns., 3, 9, 27, 31, 39, 42
Savings deposits (See Time deposits)
Savings institutions, selected assets, 27
Securities (See also U.S. government securities)
Federal and federally sponsored agencies, 33
Foreign transactions, 63
New issues, 34
Prices, 26
Special drawing rights, 4, 11, 52, 53
State and local governments
Deposits, 18, 19, 20
Holdings of U.S. government securities, 30, 31
New security issues, 34
Ownership of securities of, 18, 19, 20, 27
Yields of securities, 3
Stock market, 26
Stocks (See also Securities)
New issues, 34
Prices, 26
TAX receipts, federal, 29
Time deposits, 3, 9, 12, 14, 17, 18-21, 68-71, 73, 75, 77
Trade, foreign, 53
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 11, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. balance of payments, 52
U.S. government balances
Commercial bank holdings, 18, 19, 20
Member bank holdings, 14
Treasury deposits at Reserve Banks, 4, 11, 28
U.S. government securities
Bank holdings, 17, 18-20, 27, 30, 31, 72, 74, 76
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 11, 12, 30, 31
Foreign and international holdings and transactions, 11,
30, 62
Open market transactions, 10
Outstanding, by type and ownership, 30, 31
Rates, 3, 25
Utilities, production, 47
VETERANS Administration, 38, 39
WEEKLY reporting banks, 18-22
Wholesale (producer) prices, 44, 49
YIELDS (See Interest rates)

A90

The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories

Minneapolis
D etroit

Chicagi
j S a /t L a k e C ity

V*cisco
Louisville

Kansas City

7c'lpt%

Jell
Hashvill*

IO klahom a C it j

'"ge/es
Dallas®
l l P a so
H o u sto n i

January 1978

ALASKA

HAWAII

Legend

Boundaries of Federal Reserve Districts

®

Federal Reserve Bank Cities

Boundaries of Federal Reserve Branch
Territories

•

Federal Reserve Branch Cities
Federal Reserve Bank Facility

©

Board of Governors of the Federal Reserve
System