Full text of Federal Reserve Bulletin : July 1984
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VOLUME 7 0 •
NUMBER 7 •
JULY 1984
FEDERAL RESERVE
BULLETIN
Board of Governors of the Federal Reserve System
Washington, D.C.
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Stephen H. Axilrod • Michael Bradfield • S. David Frost
Griffith L. Garwood • James L. Kichline • Edwin M. Truman
Naomi P. Salus, Coordinator
The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Unit headed by Mendelle T. Berenson,
the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Helen L. Hulen.
Table of Contents
547 THE FEDERAL RESERVE POSITION
RESTRUCTURING
OF
FINANCIAL
REGULATION
RESPONSIBILITIES
As the nation's central bank, the Federal
Reserve must remain substantively involved in the regulation and supervision of
the financial and banking system because
those functions impinge on the Federal Reserve.
558 INDUSTRIAL
PRODUCTION
Output rose about 0.5 percent in June.
560 STATEMENTS
TO
CONGRESS
Paul A. Volcker, Chairman, Board of Governors, reviews proposals to restructure the
laws governing bank and thrift holding company activities, before the House Committee on Banking, Finance and Urban Affairs,
June 12, 1984.
568 Chairman Volcker discusses the outlook for
world trade and U.S. exports in light of the
international debt situation and dollar interest rates and exchange rates, before the
Subcommittee on International Economic
Policy of the Senate Committee on Foreign Relations, June 15, 1984. (Chairman
Volcker presented similar testimony before
the Subcommittee on International Finance
and Montary Policy of the Senate Committee on Banking, Housing, and Urban Affairs
on June 14, 1984.)
573 John E. Ryan, Director, Division of Banking Supervision and Regulation, reviews the
role of the Federal Reserve in monitoring
compliance with the Bank Secrecy Act and
its reporting requirements, and in assisting
the primary law enforcement authorities in
discharging their enforcement responsibil-
ities, before the Subcommittee on General
Oversight of the House Committee on
Banking, Finance and Urban Affairs, June
20, 1984.
ON
575 Federick R. Dahl, Associate Director, Division of Banking Supervision and Regulation, discusses the role of the Federal Reserve in implementing the Bank Export
Services Act, which authorizes bank holding companies to acquire equity interests in
export trading companies, before the Subcommittee on International Economic Policy and Trade of the House Committee on
Foreign Affairs, June 20, 1984.
579
ANNOUNCEMENTS
Appointment of Martha R. Seger as a member of the Board of Governors.
Financial results of priced service operations.
Coordination of priced service activities.
Amendment to Regulation L.
Proposed actions.
Meeting of Consumer Advisory Council.
Change in Board staff.
Admission of six state banks to membership
in the Federal Reserve System.
583 LEGAL
DEVELOPMENTS
Various bank holding company and bank
merger orders and pending cases.
606 MEMBERSHIP
OF THE
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM,
1913-84
List of appointive and ex officio members.
A I FINANCIAL
AND BUSINESS
STATISTICS
A3 Domestic Financial Statistics
A42 Domestic Nonfinancial Statistics
A50 International Statistics
A 6 5 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND
SPECIAL
TABLES
A 6 6 BOARD
OF GOVERNORS
AND
STAFF
A 6 8 FEDERAL OPEN MARKET
COMMITTEE
AND STAFF, ADVISORY
COUNCILS
A 7 0 FEDERAL RESERVE
PUBLICATIONS
A 7 3 INDEX
BOARD
TO STATISTICAL
A 7 5 FEDERAL RESERVE
AND OFFICES
A 7 6 MAP OF FEDERAL
TABLES
BANKS,
RESERVE
BRANCHES,
SYSTEM
The Federal Reserve
Position on Restructuring
of Financial Regulation Responsibilities
In December 1982, the Task Group on Regulation of Financial Services was created to review
the current federal system for the regulation of
financial services and to propose desirable legislative changes. The Chairman of the Task Group
was Vice President George Bush, and Secretary
of the Treasury Donald T. Regan was Vice
Chairman. The Task Group also included the
heads of all seven federal financial regulatory
agencies and the Attorney General, the Director
of the Office of Management and Budget, the
Assistant to the President for Policy Development, and the Chairman of the Council of Economic Advisers.
More than four dozen recommendations
were
adopted by the Task Group in its final meetings,
held in December 1983 and January 1984. All of
the recommendations,
along with draft legislation, are to be sent to President Reagan before
the Congress adjourns.
The issue of how federal agencies responsible
for commercial bank supervision and regulation
should be reorganized was one of the more
important to be considered by the Task Group.
The following article is, with slight editorial
changes, the paper that Paul A. Volcker, the
Chairman of the Board of Governors of the
Federal Reserve System, distributed to the other
members of the Task Group in December 1983.
One fundamental premise of the Federal Reserve's interpretation of, and response to, any
proposed restructuring of arrangements for the
regulation and supervision of banking and related
markets and institutions is that such responsibilities cannot be insulated from—or thought of as
something separate from—the basic responsibilities of a central bank. Central banking responsibilities by law and custom, in the United States
as well as in most other industrialized countries,
plainly encompass concerns about the stability of
the financial system in general, and the banking
system in particular.
Crucial points of concern include the following:
1. The operation of the domestic and international payments system—that is, the reliability
and safety of arrangements by which hundreds of
billions of funds are transferred among banks and
others day by day.
2. The capital and liquidity of the banking
system, so that it can (a) absorb shocks originating inside or outside the banking system, and (b)
respond effectively to monetary policy decisions.
3. The general risk profile of banks, and the
consistency of regulatory and supervisory approaches toward risk with objectives of monetary policy.
4. The structure of the banking system and the
powers of banking or other financial organizations as they bear upon these concerns.
The clear implication is that the Federal Reserve as the nation's central bank must remain
substantively involved in the regulation and supervision of the financial and banking system
because those functions impinge upon its general
responsibilities.
These responsibilities are broader than those
implied by any particular operational mode for
monetary policy; they go back to the founding of
the Federal Reserve System as an institution for
forestalling and for dealing with financial crises.
But it is also true that, taking monetary policy as
the point of departure, that policy will be either
complemented or compromised by regulation
and supervision of the banking and financial
system.
In sum, "central banking" concerns about
regulation and supervision need to be considered
548
Federal Reserve Bulletin • July 1984
together with other valid concerns of regulatory
policy—competition, simplicity, adaptability,
fairness, and federal-state relationships—in any
" r e f o r m " of the regulatory system.
This paper first develops these basic points
about the relationships between central banking
and supervisory and regulatory responsibilities,
including the possibility of conflicts among them.
It then emphasizes that proposals for administrative reform of supervisory authority need to be
viewed in the light of proposed changes in substantive legislation governing powers of banks
and bank holding companies.
THE FEDERAL
REGULATION
RESERVE
AND
BANKING
A basic continuing responsibility of any central
bank—and the principal reason for the founding
of the Federal Reserve—is to assure stable and
smoothly functioning financial and payments
systems. These are prerequisites for, and complementary to, the central bank's responsibility
for conducting monetary policy as it is more
narrowly conceived. Indeed, conceptions of the
appropriate focus for "monetary policy" have
changed historically, variously focusing on control of the money supply, defending a particular
exchange rate, or more passively providing a
flow of money and credit responsive to the needs
of business. What has not changed, and what is
not likely to change, is the idea that a central
bank must, to the extent possible, head off or
deal with financial disturbances and crises.
To these ends, the Congress has over the last
70 years authorized the Federal Reserve (1) to be
a major participant in the nation's payments
mechanism, (2) to lend at the discount window as
the ultimate source of liquidity for the economy,
and (3) to regulate and supervise key sectors of
the financial markets, both domestic and international. These functions largely predate, and are
in addition to, the more purely "monetary"
functions of engaging in open market and foreign
exchange operations and setting reserve requirements; historically, in fact, the monetary functions were largely grafted onto the supervisory
functions, not the reverse.
In a real sense, the Federal Reserve was
founded out of an instinct that monetary and
banking disturbances were interrelated. Plainly,
the concept is still relevant. At times of strain,
the Federal Reserve is looked to as central to
efforts to contain the crisis and maintain confidence—to maintain stability and continuity in the
financial system—even if the involvement of the
banking system is only derivative. Examples can
be found in the Federal Reserve's participation
in efforts to deal with the threat to the commercial paper market in the early 1970s from the
bankruptcy of Penn Central, or with the pressures on securities firms (and potentially banks)
from the collapse of silver speculation in early
1980. These crises had the seeds, and more, of
requiring a response in terms of monetary policy
itself—that is, the need to provide more liquidity
to the economy. The point is that monetary
policy can potentially be thrown off course by
disturbances or fragilities arising in the internal
structure or performance of financial markets,
and those disturbances may, in some instances,
require a monetary policy response. The public
interest requires not only a continuing effort to
foresee and deal with such weaknesses before
they erupt into crisis, but also effective crisis
management based on full awareness of monetary implications.
Central banking responsibilities for financial
stability are supported by discount window facilities—historically, a key function of a central
bank—through which the banking system, and in
a crisis the economy more generally, can be
supported. But effective use of that critically
important tool of crisis management is itself
dependent on intimate familiarity with the operations of banks, and to a degree other financial
institutions, of the kind that can be derived only
from continuing the operational supervisory responsibilities. We need to be aware of the ways
in which financial markets and institutions are
intertwined, recognizing that problems in one
area typically affect others. In particular, a crisis
in one limited part of the banking system can
quickly affect the strength and well-being of
other parts and the system as a whole, both
because of direct links through the payments
system and because the system, in the end, rests
on intangibles of confidence.
In our view it would not be workable or
reasonable—indeed, it would be dangerous—to
look to the Federal Reserve to "pick up the
pieces" in a financial crisis without also provid-
Restructuring
ing the Federal Reserve with the tools to do the
job and with adequate "leverage" in shaping the
system so as to reduce the likelihood of a crisis
arising. However imperfect the foresight of any
institution in the best of circumstances, these
continuing concerns and responsibilities demand
a strong place for the central bank among the
institutions shaping financial regulations.
These concerns have continuing operational
implications. Year in and year out, supervisory
and regulatory decisions will influence the manner in which depository institutions respond to
monetary policy decisions. On those occasions
when the economic environment may require
particularly forceful monetary policy action, the
failure of supervisors and regulators adequately
to have foreseen potential strains on depository
institutions can either constrain the ability of the
central bank to act vigorously to meet monetary
policy objectives or create a situation in which
needed monetary restraint pushes the stability of
the system to and beyond a breaking point. The
administration of the discount window from day
to day and operations in the open market, domestically and internationally, presume a capacity to evaluate the circumstances and soundness
of the institutions with which the Federal Reserve is dealing or to which it is providing credit.
Some have argued that these needs of the
central bank can be met by adequate exchanges
of information. We respectfully, but strongly,
disagree. Clearly, close working arrangements
among all agencies with supervisory responsibilities are helpful and important. But no one familiar with bureaucratic processes over the years, in
fair weather and foul, or with the realities of
changing personalities and consequent possibilities for friction, can count on access to examination reports or other information prepared elsewhere, or on opportunities to express views
formally or informally, to substitute adequately
for a share of "hands o n " operational and policy
responsibility. Without such a share, the voice of
the central bank in regulatory and supervisory
matters can and sometimes will be ignored; the
analysis it performs or that is performed for it in
these areas will be superficial; and the able and
forceful staff it needs will be dissipated. Almost
inevitably, the tendency would be to retreat into
a kind of ivory tower, adversely affecting both
monetary and supervisory policy.
of Financial Regulation
Possibility
of
Responsibilities
549
Conflicts
Some have argued that conflicts between regulation of banks and the conduct of monetary policy
can arise, and that when, in specific instances,
the conflict becomes acute, the Federal Reserve
will in effect tend to override the supervisory or
regulatory concerns, presumably to the detriment either of the safety and soundness of banking or of its competitive strength. Others may
argue the reverse: that at times of financial crisis
those concerns may lead to the provision of
significant additional liquidity to the detriment of
monetary targets.
We do not dispute the obvious—that in particular instances, different responsibilities may lead
to legitimate differences in points of view. The
real question is how best to resolve such differences so that tradeoffs are carefully weighed and
decisions made with a balanced view of the
public interest.
The nature of the Federal Reserve's responsibilities for the overall financial health of the
economy forces it to weigh tradeoffs among
various goals. Specifically, conflicts between
measures taken to achieve objectives of monetary policy and measures taken to achieve those
of supervision and regulation have to be reconciled; more positively, those objectives need to
be pursued in a mutually reinforcing manner.
Indeed, both regulatory and monetary policy will
be improved if each can take advantage of information obtained in the execution of the other.
On the other hand, the public interest will not
necessarily be served by the single-minded pursuit of different—and possibly competing—policy objectives. To take an extreme case, the
imposition of highly conservative supervision
standards at a time of strain in pursuit of the
safety and soundness of individual institutions—
one legitimate and continuing objective of supervision and regulation—could unwittingly place
the stability of the entire system at risk. Such an
approach may not take account of tradeoffs that
have implications for the ability of the financial
system as a whole to withstand and manage the
strains. Conversely, our supervisory arrangements should encourage continuing concern with
the ability of the banking system to withstand
potential pressure even during long periods of
fair weather, when temptations may develop to
550
Federal Reserve Bulletin • July 1984
cater to the instincts of the most aggressive
banking entrepreneurs.
There can be no absolute protection from
these dangers. But experience here and abroad
suggests that a strong central bank, by the very
nature of its broad responsibilities and its relative
independence, is in a unique strategic position to
take a balanced and long view. The design of any
regulatory and supervisory system needs to take
account of that broad perspective—a perspective
essentially shared only with the treasury or finance ministry.
Some history on the point is useful. A major
concern of the Federal Reserve Board and others
during and after the Great Depression was that
bank supervisors enforcing unduly conservative
lending standards were undercutting the effects
of expansionary fiscal and monetary objectives.
At other times, the opposite concern may develop—that loose standards are compromising restrictive objectives. The fact is that such general
regulatory policies as capital and liquidity standards, reserving policies, interest rate ceilings
(when they were in effect), and disclosure of
financial information have great significance for
monetary policy and the stability of the entire
financial system. In specific instances, they can
even be a dominating influence on actual policy
results.
A current example is the situation with respect
to loans to underdeveloped countries, in which
we face complex and interrelated questions
about financial and economic stability, bank
soundness and public confidence, and appropriate disclosure. The various regulators of depository institutions inevitably have different emphases in carrying out their responsibilities; and
there is considerable merit in bringing these
disparate views to bear on supervisory and regulatory problems. But in the end, resolution of the
issue will have the broadest implications for
monetary policy and our economy, and for the
economies of other major countries. The Federal
Reserve cannot help but be deeply concerned
and involved in the decisionmaking.
It is possible—indeed, probable—that any reform to eliminate or greatly reduce the Federal
Reserve's formal regulatory and supervisory involvement would eventually be overwhelmed by
the need to achieve coordination, and the regula
tory structure would in practice provide significant weight to the views of this nation's central
bank. But this clearly is not the intent of certain
proposals, and it would obviously be totally
unsatisfactory to have recognition of the central
bank's legitimate and necessary interests reasserted only after the system has lurched from
crisis to crisis.
Foreign
Experience
Although specific arrangements differ, the concerns expressed in this memorandum are widely
recognized in the practices of other industrialized countries. Among the countries of the Organisation for Economic Co-operation and Development fully one-half (including the United
Kingdom, Italy, and the Netherlands) place both
the monetary policy and the main supervisory
functions directly in the central bank. 1 In several
major countries, including France, Germany,
and Japan, supervisory responsibilities are
shared in varying degrees between the central
bank and either a banking commission or the
ministry of finance. In one country, Canada, the
formal responsibility lies basically with the finance ministry. The remaining countries have
separate (and typically very small) banking commissions; those commissions usually have formal
links with the central bank, and may rely on it for
operational surveillance as well as for policy
input.
THE LOCUS OF REGULATORY
AND SUBSTANTIVE
BANKING
AUTHORITY
LEGISLATION
In our view, much of the discussion about the
organization of financial supervision—including
various schemes to curtail or practically eliminate the Federal Reserve's regulatory or supervisory role—is out of focus. The present sense of
disarray among regulatory agencies and their
approaches grows in substantial part out of questions of substance and policy inherent in applying a framework of law developed many years
1. The arrangements are discussed in detail in the appendix.
Restructuring
ago to markets and institutions transformed by
economic and technological change. These are
not, at bottom, questions of procedure or bureaucratic jurisdiction. They urgently need to be
sorted out by the review of substantive law under
way in the Congress.
For instance, one keyj:oncern is the question
of what nonbanking business banks and other
depository institutions should be permitted to
engage in and what types of organizations should
be permitted to own banks. Uncertainty is rife in
the industry, and conflicts in the regulatory approach to interpreting current law are obvious.
The problem has become acute as banks and
bank holding companies have attempted to expand into new businesses such as securities and
insurance brokerage, while nonbank entities
such as insurance companies, securities firms,
and retail firms have made inroads on the banks'
traditional franchise in deposit taking and the
payments system. A glaring illustration of this
process was the success of the money market
funds in competing with the banks' core business
of collecting deposits. The problem has accelerated with various deregulatory steps, with the
vast improvements in communications and data
processing technology, and, until recently, with
rising inflation and interest rates.
Exploitation of loopholes in existing law—law
that for many years protected the core of the
banking business from outside competition—has
recently favored " n o n b a n k " competitors while
generally restraining banks from diversifying
their business lines. The problem has been compounded by provisions of the Bank Holding
Company Act, in which the Congress placed on
banking organizations a differential burden of
demonstrating net public benefits from proposed
new activities and which gives procedural advantages to banks' competitors when banks seek to
undertake new activities through the holding
company vehicle. These problems are rightly of
concern to banks. But the concerns arise fundamentally from the law, not from the particular
administrators of the law—although, as a common phenomenon of human nature, the "messenger" can be blamed for the message.
Some parts of the banking community have
argued that the Bank Holding Company Act is
too restrictive in terms of the powers permitted
of Financial Regulation
Responsibilities
551
to banking organizations. The Federal Reserve
shares that view, and we have endorsed and
supported the administration's proposed Financial Institutions Deregulation Act (FIDA). That
bill provides for expanded powers for banking
organizations and firmly defines the banking
powers of nondepository institutions. It carefully
defines a " b a n k " and thus the scope of institutions that are subject to the Bank Holding Company Act. Moreover, as a natural complement,
the proposals would greatly simplify the regulatory procedures for holding company initiation of
the new activities that are provided for in the bill.
Passage of FID A would, in and of itself, settle
many of the substantive issues, provide fresh,
direct indications of congressional intent about
the way the law should be administered, and
greatly improve and simplify the regulatory process. Concomitantly, it could be expected to
clear the atmosphere and eliminate, or at least
alleviate, many of the pressures by banking trade
associations to seek change through a different
regulatory structure conceived as more sympathetic to their substantive or procedural concerns. Indeed, in the absence of fundamental
legislation dealing with both powers and procedures, it is doubtful that any reshuffling of governmental responsibilities for bank regulation
would relieve the legitimate concerns of commercial banks about their competitive position
and hence their discomfort with the regulatory
regime.
APPROACHES
TO
CHANGE
The Federal Reserve neither needs nor seeks
sole responsibility for regulation and supervision
of depository institutions, but it must have a
continuing, substantial involvement in this process. It must be able to bring to bear effectively
its concerns about the direction of regulation as
the financial system evolves, and it needs significant supervisory authority as well. Such authority will keep the Federal Reserve in touch with
developments at financial institutions and will
give weight to its views in the formation of
supervisory policy, which is at the foundation of
a sound financial system.
Consequently, proposals that would simply
552
Federal Reserve Bulletin • July 1984
remove the most important element for Federal
Reserve regulatory and supervisory influence—
its responsibility for bank holding companies—
cannot meet the minimum requirements unless
"leverage" is restored in other ways. One vote
on a five-member council and the right to accompany the examiners of other agencies as a kind of
junior partner as they supervise a limited number
of the nation's largest banks—without regulatory
authority or the power to require corrective
measures—do not constitute an adequate substitute. And, to the extent concurrent regulatory or
supervisory authority is provided for a small
group of institutions, problems of a clash in
policy and confusion for the supervised banks
would be magnified.
We also recognize that the current regulatory
system poses a number of problems of overlapping or divided authority and that these problems
have been aggravated by differences toward substantive questions. In our view, the fresh congressional direction on these questions implied
by the adoption of FIDA would eliminate much
of the difficulty and present the remaining problems in a different, and more manageable, context.
Modifying
the Present
Framework
In approaching change, the strengths of the present regulatory system should not be overlooked. Broadly, it has provided some balance
among various interests and concerns within the
government in the process of supervision and
regulation. For example, through the Office of
the Comptroller of the Currency there is a link to
the broad policy concerns of the Secretary of the
Treasury. At the same time, the supervisory and
regulatory function as a whole, and particularly
the portions concerned with "casework," are
insulated from political pressures; and administrative arrangements encourage a degree of continuity that would be lost if they were tied
directly to the executive branch.
The current system also incorporates an important role and influence for the Federal Reserve in domestic and international banking
regulation without concentrating power and
casework in that agency.
There is a significant role for the deposit
insurance agency that offers some balance to its
inherently conservative mandate to protect the
insurance fund. The existing system also fits
reasonably comfortably within the context of the
dual banking system; a more centralized system,
impelled to treat banks with a high degree of
uniformity, might tend inherently to erode the
meaningful role for states in regulation and supervision.
These are matters that must be dealt with in
any reform, and it remains to be seen whether
they can be dealt with as effectively in another
framework.
As noted earlier, enactment of FIDA would, in
itself, deal with some of the most important
concerns of the regulated banks and substantially
simplify bank holding company regulation. Other
steps could be taken to improve the present
supervisory and regulatory structure independent of FIDA.
Those steps include consolidating the responsibility for antitrust analysis of cases involving
domestic banking organizations in the Justice
Department. Another step would be to consolidate in the Securities and Exchange Commission
the responsibility for administration of the securities laws as they affect deposit-taking companies. Authority for margin requirements could be
realigned. (It may be noted that, when these
steps have been considered in the past, the
banking industry itself usually has urged that the
basic authorities be retained by the bank regulatory agencies.)
Regulatory responsibility for much of the consumer credit protection legislation (and for relations with the Consumer Advisory Council,
which, in any event, should be preserved) might
also be shifted from the Federal Reserve to an
agency with responsibility for other consumerrelated legislation. The current arrangement appears to be working satisfactorily, however, and
this, in itself, is probably not a priority matter.
Improvements aimed at simplicity and consistency can be made in other areas, potentially
more closely related to the essence of the Federal Reserve's concerns for regulation and supervision. These steps could be taken whether or not
FIDA is passed, but would make a greater contribution if FIDA were the operative law.
Restructuring
One possibility would be to shift to the primary
banking regulator responsibility for one-bank
holding companies that in fact conduct no significant nonbank activities; while a heavy case load
exists in this area, the holding companies are
essentially nothing more than financing vehicles
for the bank.
Another possibility would be to shift to the
Federal Reserve responsibility for regulation of
the banks that are part of holding companies with
significant nonbanking activities. Under such an
arrangement, both the bank and the bank holding
company would be regulated by the same agency, further reducing the overlapping jurisdiction
now in place.
Regulation of nonbanking activities of bank
holding companies and multibank holding companies raises questions of uniform treatment for
activities that extend over state and national
boundaries, and the logic points strongly toward
maintaining regulation and supervision of hold-
APPENDIX-.
FOR BANK
of Financial Regulation
Responsibilities
553
ing companies in a single agency. From the
standpoint of the Federal Reserve, this arrangement offers a critical vantage point for maintaining oversight and surveillance over the evolution
and risk characteristics of the system as a whole.
Under current practice, the Federal Reserve
routinely solicits the recommendations of the
Office of the Comptroller of the Currency, the
Federal Deposit Insurance Corporation, and
state supervisory authorities on applications that
come before it under the Bank Holding Company
Act. With rare exceptions, the final determination by the Federal Reserve is consistent with
those recommendations. Nonetheless, the supervisory system could be better integrated if the
law were amended to provide the presumption
that the Federal Reserve accepts the findings of
the primary banking supervisor with respect to
the financial and managerial factors bearing on
the lead bank of the holding company.
CENTRAL BANK
RESPONSIBILITY
SUPERVISION
IN SELECTED
COUNTRIES
Central banks in many industrial countries, as
well as those in most developing countries, have
major responsibility for bank supervision and
regulation. In the United Kingdom, Italy, and the
Netherlands, the central bank has sole responsibility for bank supervision. 2
In a number of other countries of the Organisation for Economic Co-operation and Development responsibility for supervision, both in form
and in practice, is divided between the central
bank and a bank supervisory office or commission. Legislation recently enacted in France
placed the banking commission more directly
under the Bank of France. On-site inspections of
banks in France are conducted by inspectors of
the Bank of France. Luxembourg has recently
created a new institution with most of the powers
2. The material for this appendix was derived from Richard Dale, Bank Supervision Around the World (New York:
Group of Thirty, 1982); and Board of Governors of the
Federal Reserve System, Report to Congress on Bank Supervision in the Group of Ten Nations and Switzerland (The
Board, 1984).
of a central bank, including responsibility for
prudential supervision of financial institutions.
In Germany and in Japan, responsibility for
bank supervision is shared by the central bank
with a banking commmission and with the Ministry of Finance respectively. In Germany, the
Bundesbank is consulted on all major supervisory decisions, concurs in the establishment of
liquidity ratios and guidelines, conducts on-site
examinations (through the state central banks),
and collects reports on large credits. In Japan,
the Ministry of Finance has statutory responsibility and authority for licensing, but operational
supervision is closely coordinated with the Bank
of Japan, which has its own inspectors who
examine loan quality and management.
In Belgium and Switzerland, the central bank
is somewhat less involved in bank supervision.
In Belgium, the Deputy Governor of the Central
Bank has a seat on the banking commission, and
the commission consults with the central bank
before establishing solvency and liquidity ratios;
the commission relies on external auditors to
554
Federal Reserve Bulletin • July 1984
ensure compliance with banking laws. In Switzerland, the central bank has taken a role in
supervision only recently, and at times it has had
a seat on the banking commission.
In Austria, Canada, and the Scandinavian
countries, the central bank has a limited role in
bank supervision.
In all OECD countries, the central bank and
the banking supervisory institution consult on
problem cases, particularly in view of the role of
the central bank as lender to the banking system.
Moreover, central banks have responsibility for
monitoring developments in foreign exchange
and domestic financial markets, for identifying
trading and other market practices that may
signal prudential problems, and for overseeing
the smooth functioning of the payments system.
The accompanying table summarizes the responsibilities of the central banks for bank supervision in the OECD countries.
Responsibility for bank supervision
in O E C D countries
United
Italy
Kingdom
The Banking Act of 1979 is the statutory basis for
banking supervision and regulation in the United
Kingdom. It defines two categories of institutions: recognized banks and licensed deposittakers. The Bank of England supervises recognized banks through its direct and continuing
contacts with management, while the licensed
deposit-taking institutions are regulated through
more formal procedures. 3 As of February 1984
there were 290 recognized banks and 308 licensed deposit-taking institutions in the United
Kingdom.
The Bank of England does not conduct regular
on-site examinations of banks. The supervisory
process is initiated through its analysis of statistical reports filed by the banks. These reports are
utilized in quarterly or semiannual discussions
with banks' senior management. These discussions are intended to analyze the ability of man3. The statutory requirements for recognition as a bank by
the Bank of England are more stringent than those for
obtaining a deposit-taking license. The main criteria are (1)
adequacy of financial resources (including a minimum capital
requirement); (2) high reputation and standing in the financial
community; (3) provision of a specified range of financial
services; and (4) a management of integrity and prudence
commanding appropriate professional skills.
Primary central
bank responsibility
Joint
responsibility
Little direct
central bank
responsibility
G-10 countries
France
Italy
Luxembourg
Netherlands
United Kingdom
Belgium
Germany
Japan
Switzerland
United States
Canada
Sweden
Other OECD countries
Australia
Greece
Iceland
New Zealand
Portugal
Spain
Turkey
Austria
Denmark
Finland
Norway
agement to control the business objectives of the
banks.
The Bank of Italy is responsible for supervision
and regulation of the domestic banking system,
subject to directives from the Interministerial
Committee for Credit and Savings. The Banking
Law of 1936 granted the Bank of Italy broad
powers to license banks, to establish supervisory
requirements, and to conduct on-site examinations. The Bank of Italy has an inspection department that regularly conducts such examinations.
The
Netherlands
The Netherlands Bank has broad responsibility
for supervision of the credit system, including
licensing authority, monitoring responsibilities,
and the ability to impose sanctions on credit
institutions. Its supervisory responsibilities cover the universal banks, cooperative banks, savings banks, and mortgage institutions. The supervisory system is highly formal, with detailed
regulations on solvency and liquidity. The central bank also attaches considerable importance
to its informal contacts with banks. On-site inspections by the central bank form an important
part of the supervisory process.
Restructuring
France
The Banking Law of January 24, 1984, brought
all credit institutions in France under a single
supervisory structure, with considerable authority and responsibility for supervisory policy and
for on-site inspection vested in the Bank of
France. That new law created three separate
bodies with bank supervisory responsibility:
1. The Bank Commission, chaired by the Governor of the Bank of France, is responsible for
ensuring the safety and soundness of the credit
institutions and monitoring compliance with
banking laws and regulations. On-site banking
examinations are conducted by inspectors of the
Bank of France.
2. The Committee
on Bank
Regulation,
chaired by the Minister of Finance with the
Governor of the Bank of France as Vice Chairman, establishes prudential regulations and accounting standards, and determines what activities are permissible for commercial banks.
3. The Committee on Credit Institutions, cochaired by the Governor of the Bank of France
and the Director of the Treasury, is responsible
for approving licenses to establish new banks
and for making technical decisions regarding
application of regulations to individual banks.
Luxembourg
The Institut Monetaire Luxembourgeois (IML)
was established in June 1983. The IML performs
many of the functions of a central bank, including issuing coins and notes, holding and managing official reserves, regulating of domestic credit, serving as a depository for government funds,
and supervising financial institutions. The legislation establishing the IML transferred to that
institution the exercise of all supervisory and
regulatory powers of the previous Banking Control Commission.
of Financial Regulation
Responsibilities
555
exercises its functions in close cooperation with
the Bundesbank, which maintains its own bank
supervision department. Financial reports are
collected by the Bundesbank, but the FBSO has
the responsibility for taking appropriate steps in
the light of such reports. Similarly, the FBSO has
responsibility for issuing detailed regulations on
liquidity and capital adequacy; however, the
Bundesbank is consulted in the determination of
applicable ratios that may have implications for
monetary policy. The FBSO is empowered to
conduct on-site inspections of banks, but does
not generally do so. These inspections are conducted by external auditors or by the 11 state
central banks (Landeszentralbanken), which are
analogous to Federal Reserve District Banks.
Presidents of the Landeszentralbanken sit on the
Central Bank Council, which determines monetary and credit policy.
Present supervisory arrangements reflect reforms introduced in 1976 after the failure of the
Herstatt bank, including rules on risk spreading
and foreign exchange exposure, the establishment of a "lifeboat f u n d " for banks experiencing
liquidity difficulties, and an extended deposit
protection scheme. These arrangements have
been supplemented by a series of "gentleman's
agreements" aimed at extending the supervisory
function to the foreign operations of German
banks.
Following the Herstatt episode, the Bundesbank, in conjunction with the domestic banking
industry, established the Liquidity Consortium
Bank (Liko-Bank) to assist banks that run into
temporary liquidity difficulties but are otherwise
sound.
In early 1984 the German cabinet approved
draft changes to the Banking Act that would
limit outstanding credits of the consolidated bank
(including majority-owned subsidiaries) to 18
times capital, would reduce the limit on single
credits from 75 percent to 50 percent of a bank's
capital, and would improve the statistical coverage of foreign subsidiaries.
Germany
Japan
The Federal Banking Supervisory Office (FBSO)
is responsible for the supervision of banks and
other credit institutions in Germany, although it
The Ministry of Finance (MOF) has broad responsibility for licensing, regulating, and super-
556
Federal Reserve Bulletin • July 1984
vising banks and other financial institutions in
Japan, although the Bank of Japan (BOJ) also has
a role in bank supervision, which it fulfills in
close consulation with the MOF. Since 1981 the
emphasis in bank supervision has shifted from
the traditional approach of administrative guidance toward a more formal regulatory structure,
although the MOF retains considerable discretionary authority.
The BOJ also conducts on-site inspections of
banks because of its substantial extensions of
credit to banks, with the aim of ensuring a stable
financial environment as well as the smooth
implementation of monetary policy. In addition
to the MOF, the BOJ has its own inspectors who
focus primarily on an assessment of the banks'
loan quality and management. Copies of examination reports submitted to the MOF are provided to the BOJ.
Belgium
The Banking Commission, established in 1935, is
responsible for supervising the Belgian banking
system. A member of the Management Committee of the National Bank, often the Deputy
Governor, is usually a member of the Banking
Commission. The Banking Commission's functions are confined largely to preventive supervision and to regulation. Deposit protection is
provided mostly through the Institut de Reescompte et de Garantie.
The National Bank has a limited statutory role
in supervision. Regulations on balance sheet
ratios, reserve requirements, and other matters
of economic policy are the responsibility of the
National Bank, although in practice it consults
regularly with the Banking Commission before
issuing monetary policy guidelines affecting
banks. On-site inspections are generally conducted by auditors appointed by the Banking
Commission, which also uses its own inspectors
in special situations.
Switzerland
The Federal Banking Commission is the chief
supervisor for institutions that accept deposits
from the public in Switzerland. The members of
the commission are appointed by the Swiss government and must be experts in banking. At
times since 1975 a vice president of the Swiss
National Bank (SNB) has been a member of the
commission, facilitating cooperation between the
two institutions, but there is no legal requirement
that a member of the commission be from the
SNB. In practice, the cooperation and coordination between the commission and the SNB is
quite close. The SNB receives copies of licenses
issued by the commission (but not audits), and
provides the commission with certain statistical
reports. The staff of the commission is quite
small. On-site inspections are typically performed by private auditing firms, which are
appointed and paid for by the banks but are
licensed by the commission. The outside auditor's report is in a format and has a content
designed by the commission, and it must give an
accurate assessment of the financial condition of
the bank and its compliance with banking law
and licensing criteria.
Canada
In Canada, the Inspector General of Banks is
responsible to the Minister of Finance for the
administration of the Bank Act, including supervision of the country's banking system. The
Inspector General must report to the Minister of
Finance at least once a year on the financial
soundness of each bank.
The focus of the examination procedures is a
management audit, with emphasis on capital,
asset quality, management, earnings, and liquidity. There is heavy reliance on outside auditors,
who must rotate every two years.
Because the Bank of Canada is the lender of
last resort, it cooperates closely with the Inspector General in the supervision of problem banks.
The Governor of the Bank and the Inspector
General both sit on the Board of the Canadian
Deposit Insurance Corporation. The Bank of
Canada collects, processes, and analyzes financial returns submitted by banks, and is in daily
contact with banks through trading of foreign
exchange and government securities.
The Governor of the Bank of Canada also
serves as Chairman of the Board of Directors of
the Canadian Payments Association, a group that
Restructuring
oversees clearing and settlement of Canadian
payments.
Sweden
Bank supervision in Sweden is conducted by the
Bank Inspection Board (Bankinspektionen),
which reports to the Minister of Economics. Its
principal functions are ensuring safety and
soundness of banks, compliance with banking
of Financial Regulation
Responsibilities
557
laws and regulations, and conducting on-site
examinations. The Swedish Central Bank (Riksbank) regulates the credit markets, serves as a
source of liquidity, and acts as the lender of last
resort. The Riksbank has some role in supervising banks' foreign exchange positions, and the
reports by banks on foreign lending exposure are
provided to both the Bank Inspection Board and
the Riksbank, which discuss them at regular joint
meetings.
558
Industrial Production
Released for publication
July 13
Industrial production increased an estimated 0.5
percent in June following a rise of 0.4 percent in
May; the April gain has been revised down to 0.9
percent from the previous estimate of 1.1 percent. Production increases in June were largest
in automotive products, equipment, and energy
materials. In June the index of industrial output
was at 163.6 percent of the 1967 average; since
December 1983 it has increased at an annual rate
of 9.7 percent. From December 1982 to December 1983 the pace of advance was 15.5 percent.
In market groupings, production of consumer
goods increased 0.4 percent in June. Auto assemblies increased about 2.5 percent to an annual
rate of 7.8 million units; output of nondurable
consumer goods was up 0.4 percent, but produc1967 = 100
170
1978
All series are seasonally adjusted and are plotted on a ratio scale.
1980
1982
Auto sales and stocks include imports. Latest figures:
559
1967 = 100
Percentage change from preceding month
1984
1984
Grouping
May
June
Feb.
Mar.
Apr.
Percentage
change,
June 1983
May
June
1984
Major market groupings
Total industrial production
162.8
163.6
.9
.5
.9
.4
.5
11.7
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment ..
Defense and space . . .
Intermediate products ..
Construction supplies.
Materials
163.3
161.1
162.1
162.2
162.0
175.4
133.6
171.3
159.7
162.0
164.1
162.1
162.7
163.2
162.6
177.0
134.7
171.6
159.2
162.9
.4
.3
-.1
-.6
.2
.7
.9
.7
.7
1.8
.4
.4
.5
.4
.6
.1
.5
.7
1.6
.6
.9
1.0
.8
-.4
1.3
.8
2.1
.5
.5
.9
.5
.6
.4
-.2
.6
1.1
.6
.1
-.1
.1
.5
.6
.4
.6
.4
.9
.8
.2
-.3
.6
10.8
10.7
6.8
9.4
5.9
17.8
14.2
11.1
12.0
13.4
.4
.3
.4
1.2
-.2
.4
.5
.2
1.1
1.4
11.8
15.7
7.4
11.9
9.0
Major industry groupings
Manufacturing
Durable
Nondurable.
Mining
Utilities
164.2
153.3
179.9
124.6
182.5
164.8
154.1
180.2
126.0
185.1
1.2
1.3
1.1
-.6
-2.5
.4
.6
.2
-.2
2.0
.9
.9
.9
-.6
1.6
NOTE. Indexes are seasonally adjusted.
tion of home goods changed little. Production of
business equipment posted another sizable gain,
with the largest increases occurring in building
and mining, and transit equipment. Output of
construction supplies declined 0.3 percent following a slight decrease in May.
Output of materials increased 0.6 percent in
June. Output of parts for consumer durables and
for equipment rose sharply. However, a sizable
decline in steel production held the total gain for
durable materials to 0.4 percent. Production of
nondurable materials increased 0.3 percent and
that of energy materials, 1.4 percent.
In industry groupings, manufacturing output
rose 0.4 percent; production of durables advanced 0.5 percent, and output of nondurables
edged up 0.2 percent. Mining output was up
sharply as a result of increases in coal production
and oil and gas well drilling activity. Production
by utilities also increased sharply because of the
unusually hot June and resulting strong demand
for electricity.
560
Statements to Congress
Statement by Paul A.
of Governors of the
before the Committee
Urban Affairs, U.S.
June 12, 1984.
Volcker, Chairman, Board
Federal Reserve
System,
on Banking, Finance and
House of
Representatives,
I appreciate the opportunity to review with you
proposals to restructure the laws governing bank
and thrift holding company activities. I am hopeful that these hearings will represent the conclusion of an extensive review by the Congress of
legislative proposals affecting the competitive
environment in the markets for banking and
other financial services so that much needed
legislation can be enacted this year.
I have on several occasions expressed my
conviction, before congressional committees and
elsewhere, that we must move with a sense of
urgency to reform the existing legislative framework governing "banking" organizations. The
time remaining for congressional action in this
session has grown shorter, but the pressures of
events remain. The banking and financial system
will evolve in new directions. The only question
is whether that evolution will proceed within a
framework established by the Congress, with full
consideration and a balancing of the public interests involved, or whether it will proceed entirely
under the impetus of market forces pushing
around, and over, a legislative structure set in
quite different circumstances years ago.
The latter possibility cannot be satisfactory,
opening the clear danger that the overriding
public interest in a strong, stable, and competitive financial system will be lost. New technologies, intense market pressures, the growing aggressiveness of states in competing with each
other for jobs in banking, and potentially conflicting decisions of regulators and courts attempting to apply old laws to today's circumstances all demand a considered and adequate
response. Your committee has the opportunity to
take a leading role in that effort.
The basic framework within which we at the
Federal Reserve approach these questions can
be simply summarized as follows: (1) we want to
encourage fair competition in the provision of
banking and financial services; (2) we want to
promote efficiency and minimal cost to benefit
consumers; (3) we want to protect against con
centration of economic resources, discrimination, conflicts of interest, and other potential
abuses; and (4) we want a strong and stable
banking system, implying continuing attention to
safety and soundness of banks and other depository institutions.
These goals in some circumstances will, to be
sure, be in conflict or point to different approaches. Consequently, they must be appropriately
balanced. In approaching that balance, the normal perception for most industries—that we can
simply look to the marketplace to promote competition and efficiency—must be considered in
the light of the crucial importance of maintaining
confidence in banking institutions, continuity in
the provision of money and payment systems,
and the ability of the central bank to conduct
effective monetary policy.
Public policy has long recognized the importance of protecting the safety and soundness of
banks and depository institutions generally: they
perform a unique and critical role in the financial
system as operators of the payments system, as
custodians of the bulk of liquid savings, as unbiased suppliers of short-term credit, and as the
critical link between monetary policy and the
economy. In our judgment, those concerns remain central today in any consideration of banking legislation. Recent developments only emphasize the point.
One aspect of those concerns is reflected in the
federal "safety n e t " long provided by the discount window and deposit insurance, and that
"safety n e t " also implies an effective supervisory and regulatory framework for depository institutions to contain excessive risk. Moreover, that
framework must, to a degree, extend to holding
companies of which the depository institutions
561
are a part because banking institutions cannot be
wholly separated from the fortunes of their affiliates and from the success or failure of their
business objectives.
At the same time, banking and thrift organizations must be able to compete, and compete
effectively and profitably in the marketplace, if
they are to be strong and stable institutions,
capable of serving the public and the public
policy effectively. That need itself requires adaptation of the legislative framework. It is establishing that balance among the needs for soundness, continuity, and competitive strength that
represent the legislative challenge before you.
THE CURRENT
SITUATION
The accelerated pace of change in the structure
of our financial system grows out of several
developments that are well known by now. New
communications and data processing technology
has led to computerization of many financial
services and to a blurring in the capacities of
banks, thrifts, and other potential suppliers of
financial services. There are greater opportunities for providing efficient services and more
services by banks and nonbanks alike. At the
same time, business and consumer experience
with inflation and related higher interest rates of
the late 1970s and 1980s has increased sensitivity
to yield differentials and has put a premium on
the ability to move money quickly both nationally and internationally.
Removal of interest rate ceilings on liabilities
of depository institutions and aggressive competition with new forms of liquid deposits and
deposit substitutes have spurred efforts to attain
new sources of income through fees, through
expanded asset powers, and by operating interstate. At the same time, nonbanks, offering
broadly similar types of financial instruments,
have sought ways to enter the banking business
to gain access to federal deposit insurance and to
the payments mechanism without having all the
burdens carried by the regulated banking sector.
There have been numerous reactions to the
forces driving change. We see new combinations
of financial firms and new services. Increasingly,
it seems, those services are similar to those
offered by banks—money market funds, cash
management accounts, and more recently brokerage of insured deposits. The phenomenon
known as "nonbank b a n k s , " growing out of
loopholes in current law, provides a vehicle by
which financial and nonfinancial firms can enter
the banking business outside the framework of
law and regulation surrounding bank holding
companies, actually or potentially violating the
policy proscriptions against the combining of
banking and commerce, and in the case of banks
themselves, the established policies limiting interstate banking. Among depository institutions
the distinctions are also blurring, with many
thrifts increasingly assuming the characteristics
of t^nks. Moreover, "bank-like" thrifts are also
able; particularly under much more liberal laws
in some states, to undertake activities prohibited
for banks.
Now, we can also see a strong movement
among states to enact banking laws more permissive than federal law—in an effort to attract
institutions, to enhance state revenues, and to
create new state employment opportunities—
with the obvious potential for undermining federal law and policy. And, as those efforts become
generalized, they will be self-defeating even in
their immediate purpose. Meanwhile, the decisions of federal regulators in the framework of
existing law may be, or appear to be, inconsistent, whether they are meant to facilitate change
or to maintain congressional intent. Such decisions are increasingly subject to court challenges
to stop or speed the process, as they have an
impact on particular private interest concerns,
and the courts themselves are hard pressed to
apply old laws to new circumstances.
As regulators and legislators concerned with
the public interest, we must be sensitive to
abiding and valid concerns of the public interest
without blocking responses to real needs in the
marketplace. As things now stand, there is no
assurance that the process of change will adequately address public policy concerns. Quite
the opposite—it is clear that some of the timetested tenets of banking law and policy are being
undermined as market pressures and competitive
instincts play against an outmoded legal and
regulatory framework. The longer difficult decisions about the direction in which change should
be encouraged or discouraged by public policy
are postponed, the more difficult these decisions
562
Federal Reserve Bulletin • July 1984
will ultimately become. And, more importantly
in my view, delay only increases the risks that
policy concerns—including the safety and soundness of the banking system—will be undermined.
ed changes that the committee may wish to
consider.
DEFINITION
A BALANCED
LEGISLATION
APPROACH
TO
BANKING
In previous testimony on these issues before the
Senate Banking Committee, I have suggested
that new legislation should now address the
following areas affecting banking institutions: (1)
a strengthened definition of a bank, (2) a definition of a "qualified" thrift, (3) statutory guidelines to govern the division of state and federal
authority in the area of banking organization
powers, (4) new procedures to streamline application of the Bank Holding Company Act, and
(5) expanded powers of depository institutions
holding companies. That testimony described in
considerable detail our position on each of these
areas and, rather than reviewing those positions
again, I have attached my Senate testimony to
this statement for the use of the committee.
The legislation introduced by Chairman St
Germain and by Mr. Wylie—The Financial Institutions Equity Act of 1984—deals in a broadly
appropriate way with the first three areas I have
mentioned. So far as they go, the provisions
closely parallel the views of the Federal Reserve
Board. Specifically, they would more adequately
define what a bank is, define the essential nature
of a thrift eligible for the privilege of treatment as
a "unitary" savings and loan holding company,
and limit the ability of states to regulate banking
in ways inconsistent with federal policy. Provisions along these lines are important in any
legislation. What is necessary, however, is redefinitions of the powers of bank holding companies
in a manner more in line with present needs,
while consistent with safety and soundness as a
whole. Therefore, I urge the committee, in its
consideration of the legislation, to add the two
vital elements now omitted: namely the streamlining of provisions under the Bank Holding
Company Act and the expanded powers of depository institution holding companies.
In reviewing H.R. 5734, my comments will be
fairly general. Therefore, I have appended specific legislative language encompassing suggest
OF A
BANK
The definition of a bank proposed in H.R. 5734—
(1) an FDIC insured bank; (2) a bank eligible for
FDIC insurance; or (3) a depository institution
that accepts transaction accounts and makes
commercial loans—is the one originally recommended by the Federal Reserve. The new definition would close the nonbank bank loophole in
current law, and would not allow so-called "consumer b a n k s " to be exempt from the Bank
Holding Company Act. We believe it to be
basically sound.
We have suggested a few limited changes to
the basic definition in the bill in the Senate
testimony that is attached. 1 Those changes are
designed to avoid having an unnecessary impact
on a limited number of state-chartered nonbank
institutions should the committee wish to do so,
although we fully agree that nonbank depository
institutions such as industrial banks and privately insured thrifts should be covered by the basic
policies of the bank and savings and loan holding
company acts.
An important provision of the bill would provide for divestiture of institutions that are defined as banks if the parent owner is engaged in
businesses that are inconsistent with the restrictions and limitations of the Bank Holding Company Act, without providing any grandfathering.
While we have been willing to support provisions
that would permit a limited amount of grandfathering for institutions proceeding in good faith
before legislative proposals were introduced, we
agree that such exceptions should be made with
great caution.
I would like to remind the committee of a
related point concerning equity among financial
institutions: we regulate banks to preserve the
integrity of the nation's payments mechanism
and to meet the needs of monetary policy. It has
been the longstanding view of the Board that
authority should be provided to it to define
1. The attachments to this statement are available on
request from Publications Services, Board of Governors of
the Federal Reserve System, Washington, D.C. 20551.
Statements
transaction accounts and to apply reserve requirements to institutions that are not formally
depository institutions (and thus are not covered
by the prudential rules applicable to these institutions and their holding companies), but that do
offer transaction accounts similar to those offered by banks and thrifts. As long as these close
substitutes for bank deposits are free from reserve requirements, potential competitive advantages relative to bank deposits exist, particularly
when no interest is paid on required reserves. At
some time, the result of the competitive disparity
could be to complicate the task of conducting
monetary policy.
Thus, the Board believes it would be prudent
to incorporate into the bill a provision whereby it
would have authority to determine if instruments
issued by nonbank institutions allowing thirdparty payment have, in fact, the essential characteristic of transaction accounts and should thus
be subject to reserve requirements. The Board
would not expect to use this authority unless
conditions arose to demonstrate its necessity.
Also, we believe that institutions with such powers should be subject to requirements pertaining
to reporting of deposits.
DEFINITION OF QUALIFIED
INSTITUTION
THRIFT
As in the case of nonbank banks, there has been
increasingly clear recognition of the need to
adopt rules to assure equality of treatment of
various types of depository institutions exercising similar or overlapping powers. Thrift institutions have become more like banks with respect
to the powers they are allowed to exercise, and
that has become increasingly true with respect to
the powers they do exercise. Moreover, the
powers available to thrift institutions in other
respects extend well beyond those available to
banks and over time will even call into question
the basic separation of banking and commerce
now incorporated in public policy. Considerations of competitive equity alone dictate that
the privileges and restrictions of banks and
thrifts be brought into a more coherent relationship. But it is not just a matter of competitive
equity. Restrictions on powers of bank holding
companies and on "nonbank banks" will inevita
to Congress
563
bly be undercut, and rapidly, to the extent thrift
institutions with banking powers can simply substitute as a vehicle for combining various activities. The need for action is reflected in the
interest of a variety of nonfinancial and financial
businesses in the acquisition of thrifts in order to
benefit from their bank-like powers, to have
expanded opportunity for branching, to gain access to federal deposit insurance, and to be direct
participants in the payments mechanism while
retaining their range of nonbanking, and even
nonfinancial, business.
I recognize that there are difficult questions
posed by firms that already have operations on
both sides of the line between commerce and
"thrift banking." In the past, some industrial or
commercial firms have owned thrifts operating
as separate and distinct entities without significant problems arising. But in the environment we
now face, these questions need to be approached
anew, and a firm policy established with respect
to which combinations are acceptable and which
are not.
H.R. 5734 approaches this issue by defining a
"qualified" thrift institution to be a thrift that has
at least 65 percent of its assets in residential
mortgages or related investments. This test must
be met within two years, except for mutual and
stock savings banks that are given a 10-year
period to comply. Further, "nonqualified"
thrifts would be precluded from engaging in
commercial lending activities whether or not
they are part of a holding company. Similarly,
commercial lending activities would not be permitted by those "qualified" thrifts that are
owned by a unitary savings and loan holding
company that engages in activities not permitted
for a multiple savings and loan holding company.
We believe that this qualified thrift test is
appropriate for a savings and loan holding company to be eligible for treatment as a unitary
thrift holding company, with the special benefits
that status carries. Further, we believe the basket of assets to be included under H.R. 5734 in
the 65 percent ratio, which would include residential mortgages or mortgage backed securities, mobile home loans, loans for home improvement, or participation in any of these
instruments, is appropriate and consistent with
the historic purpose and the special benefits the
Congress has given to thrifts as housing lenders.
564
Federal Reserve Bulletin • July 1984
Based on this definition, according to our calculations, almost three-quarters of institutions insured by the Federal Savings and Loan Insurance Corporation would currently meet this test.
We believe that the transition periods provided
in H.R. 5734—two years for savings and loans
and ten years for mutual or stock savings banks,
with interim targets as set in the bill, represent
reasonable time frames for thrift institutions to
decide whether they wish to be excluded from
holding company act policies and continue to be
treated as thrifts or conform to those policies as
do banks. If necessary, a longer transition period
than two years could be considered for savings
and loan institutions, provided they meet interim
targets. Further, we agree that ownership of a
thrift by an industrial or commercial firm could
be continued during the transition period and
thereafter, provided that " t a n d e m " operations
between the holding company and its depository
subsidiary or vice versa are not permitted.
Some clarification of the proposed treatment
of banks and thrifts with regard to tandem operations would be desirable. The Board's position
has been that tandem operations between a thrift
institution and affiliated nonbanking subsidiaries
of the parent holding company—in either direction—should not be permitted, that is, the thrift
could not jointly market or offer its services and
the products or service of the nonbanking affiliates, and the nonbanking affiliates could not
market or offer the products or services of the
thrift. We believe that the legislation should
clearly indicate that the prohibition would work
in both directions. In the appendix, we have
suggested legislative language to accomplish this
result and to make a number of other technical
changes.
The bill also applies the tandem operations
limitations to relationships between banks and
nonbanking affiliates of bank holding companies.
Bank holding companies are already subject to
strict antitying prohibitions in the Bank Holding
Company Act and in the Board's regulations.
Considering these provisions and the activities
limitations of the Bank Holding Company Act, I
would not see any need for the provisions of
section 2(b) of H.R. 5734 related to tandem
operations between banks and bank holding
companies.
Finally, the bill prohibits the affiliation of
thrifts and securities firms applying the GlassSteagall Act to insured and uninsured savings
and loan associations. Such a provision is necessary to assure safety and soundness and competitive equity, has been recommended by the Federal Home Loan Bank Board, and is strongly
supported by the Federal Reserve Board.
ACTIVITIES OF
STATE-CHARTERED
DEPOSITORY
INSTITUTIONS
Concern has been expressed about authorizations by states permitting banks or thrifts (and
their subsidiaries) to conduct nonbanking businesses that would not otherwise be permitted to
bank holding companies under present or new
federal laws. The question must certainly be
asked whether it makes sense for the Congress to
work out carefully balanced arrangements for
depository holding companies in the conduct of
nonbanking activities, taking full account of what
is necessary to assure a safe and sound banking
system, only to see subsequently far different
and inconsistent arrangements established for
state-chartered institutions under state law for
reasons that are often more concerned with
shifting revenues and jobs than with the overriding need to provide a secure and stable banking
system.
H.R. 5734 deals with this problem by permitting states to authorize activities beyond the
scope of section 4(c)(8) of the Bank Holding
Company Act or section 408 of the National
Housing Act, but requiring that such activities be
conducted only within the authorizing state and
provided only to residents of the state.
These provisions directly address the problems created by certain state actions, such as in
South Dakota, where nonbanking activities, such
as insurance underwriting and brokerage, by
state-chartered banks are encouraged so long as
these activities are directed largely out of state.
Moreover, the proposal would allow an area of
state initiative and experimentation consistent
with the traditions of the dual banking system.
At the same time, the Board believes that one
additional step should be taken to enforce basic
national policy when questions of safety and
soundness are fundamentally at stake. That step
would involve a congressional decision to rule
Statements
out specific activities for banks or their affiliates
that the Congress specifically decides to prohibit
or limit on grounds that the safety or stability of
the banking system might be impaired—areas in
which the federal government, through the provision of a national "safety net," has a unique and
overriding interest. For example, if the Congress
reaffirms its decision to exclude banking organizations from participating in underwriting corporate debt and equity, or limits the participation of
these organizations in real estate development on
grounds of risk, as we believe appropriate, the
states should not be able to overrule that judgment and expose the insured depository system
to those risks. A similar point might be made
with respect to insurance underwriting and the
general prohibitions on links between commerce
and banking. However, in areas in which safety
and soundness are not so heavily involved, such
as in a decision to authorize real estate or insurance brokerage powers or travel services for
banking institutions, but rather involve questions
of consumer protection and competitive equity,
an overriding federal interest does not appear to
be present. Consequently, state legislatures
might authorize banking organizations to participate in these activities within the confines of
their own state, as H.R. 5734 provides. Here
each state may be in at least as good a position as
the federal government to make the judgment as
to what is desirable to protect local customers
and local interests, while encouraging a competitive environment and efficiency.
In sum, we would suggest that the balance
between federal and state interest be struck as
follows: (1) states may not authorize activities
that the Congress has ruled out of bounds for
safety and soundness reasons; and (2) states may
optionally authorize other activities but only if
they are conducted within separate affiliates
within their borders and provided to their own
residents. We have attached to this testimony a
draft of these provisions, which the committee
may find useful.
OTHER PROVISIONS
OF H.R.
5734
The legislation contains several other provisions
all having to do with securities activities of
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565
depository institutions and their holding companies. It would appropriately extend Glass-Steagall prohibitions on the intermingling of banking
and security dealings to cover affiliations with
securities firms by all banks and thrifts. Currently the Glass-Steagall prohibitions arguably cover
only member banks. The statutory omission of
explicit coverage of nonmember banks is an
anomaly that appears to have developed as an
oversight rather than by congressional intent.
Explicit coverage of thrifts is overdue, both to
assure safety and soundness and as a matter of
competitive equity. The legislation would also
close another potential loophole by making it
clear that the Glass-Steagall limitations on the
affiliation of securities firms and depository institutions apply when securities activities are conducted in affiliates of depository institutions. We
support these provisions.
The bill would also prohibit all retail brokerage
activities for all types of depository institutions
or their holding companies. This would include
so-called "discount brokerage"—shorthand for
a passive brokerage function separated from
research and active management or advice with
respect to specific accounts or stocks. Discount
brokerage, involving the purchase and sale of
securities at the request and initiative of a customer, has been approved for bank holding companies by the Federal Reserve Board. In the
Board's view, that activity does not raise questions of safety and soundness or of conflict of
interest, and is an appropriate and natural extension of services that banks and other depositories
have historically offered to their customers. Particularly when conducted in a separate subsidiary of a depository institution holding company,
we see no public policy reason why these institutions should not be able to offer discount brokerage service.
In fact, considerations of competitive equality
and potential benefits to consumers would suggest that such activities would have positive
public benefits. We believe that discount brokerage should be permitted for depository institution holding companies. A more substantive
question would arise with respect to general
stock brokerage activities. If the Congress feels
it important to provide limitations in this area,
we would confine such limitations only to a
combination of brokerage with the dissemination
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Federal Reserve Bulletin • July 1984
of advice and research, and active solicitation of
transactions in particular securities.
BANK
HOLDING
COMPANY
PROCEDURES
As I noted above, the Federal Reserve has
recommended that banking legislation should
include amendments to the Bank Holding Company Act to permit new procedures for streamlining the processing of applications under the
act. These provisions do not appear in H.R.
5734. The Board believes the new procedures
that are contained in legislation being considered
in the Senate would minimize the cost and burdens of regulation of holding companies, would
provide the Board with adequate supervisory
authority over the activities of holding companies and their nonbanking subsidiaries, and are
fully consistent with the public interest. These
provisions are desirable not only to avoid unnecessary procedural delays for bank holding companies but also are necessary to place bank
holding companies on more equal footing with
their competitors by eliminating the need for a
positive finding of public benefits and for formal
hearings. As things now stand, those requirements, which other businesses do not face in
undertaking new activities, can become a tool for
competitors to limit bank entry into lines of
activity now dominated by others.
In the proposed approach, new activities could
go forward, after notice to the Federal Reserve
Board, unless the Board found grounds for disapproval under statutory criteria, relevant to broad
public policy considerations. Specifically, new
initiatives could be disapproved if inadequacy of
financial and managerial resources were demonstrated, if resources were widely concentrated,
or if there were adverse effects on bank safety
and soundness. As further protection, the Board
would also have general authority to set out
regulations on nonbanking activities to assure
"safe and sound financial practices," including
appropriate capital standards.
The purpose of those provisions, and the provision reducing the scope for judicial review by
competitors, is to reduce unnecessary regulatory
burdens while maintaining a necessary level of
supervision to protect public policy interests.
While potentially dilatory formal hearings on
applications would be limited, formal rulemaking
procedures would, of course, remain in place
with respect to decisions to add new activities to
permissible bank holding company powers. The
Board would continue to request public comments on notices and to hold informal hearings,
when necessary, to obtain information necessary
to make decisions.
Our conclusion is that those provisions adequately balance the need for reducing the regulatory burdens with the requirement for adequate
supervision to enforce fully the provisions of the
Bank Holding Company Act. I strongly recommend that these provisions be included in legislation now before the committee.
NEW ACTIVITIES
COMPANIES
FOR BANK
HOLDING
H.R. 5734 provides for no new expanded powers
for bank holding companies. In our view, considerations of competitive equality as among types
of financial institutions (including thrifts), potential benefits to consumers of a broader range of
suppliers of financial services, and the need for
banks to broaden their earning capacity strongly
point to an increase in the range of banking
related activities permitted bank holding companies. The point is reinforced by the need to
assure that these companies are in a position to
take advantage of the burgeoning technological
developments that are enhancing the delivery of
financial services.
As I have stressed, those considerations must
be—and they can be—balanced against other
public policy concerns: assurance of fair and
open competition in the provision of credit and
other services, maintenance of impartiality of
banks and credit judgments, and avoidance of
practices that can undermine the strength of the
bank itself, and the banking system more generally. My earlier testimony before the Senate
deals with these questions at length, considering
each of the most significant powers in turn.
Rather than burden you by reiterating that analysis here, I would only point out that in approaching these questions, we firmly believe the issues
of safety and soundness of concern to members
Statements
of the committee can be appropriately addressed
in the legislative process consistent with a broadening of bank holding company powers.
INTERSTATE
BANKING
We surely need a fresh congressional review of
our entire policy toward interstate banking.
While I understand the difficulties involved in
this issue, we also must recognize that the proliferation of nonbank affiliates of bank holding
companies operating across state lines, integrated loan production and "Edge A c t " offices,
national and regional marketing of credit card
and related services, the current action of some
states themselves to permit entry of out-of-state
banking organizations, and the broader powers
of thrift institutions able to operate interstate
have by now led to interstate banking de facto for
many banking services. But this de facto system
has inherent inefficiencies and gaps, and in some
instances may be more difficult to operate, from
the standpoint of the bank, or to supervise from
the standpoint of the regulator.
While most of the issues in this controversial
area will need to be held over to a later Congress,
the present movement towards regional interstate banking arrangements does raise major
constitutional and public policy issues that need
to be dealt with now. Recently, in three bank
holding company merger applications under reciprocal statutes of New England, the Board had
to address constitutional issues inherent in these
discriminatory arrangements. As anticipated, the
basic issues in these cases are now before the
federal courts.
We cannot anticipate the outcome of those
actions, but we do believe the matter should be
decided as a matter of congressional policy, not
by regulators or courts attempting to read the
legislature's intent into old laws originally intended to deal with different problems. If the
Congress wishes to support regional arrangements, legislation explicitly authorizing that approach should be enacted. We believe, as a
matter of public policy, that such authorization
should be for a strictly limited period, and
viewed as a transition toward interstate banking
arrangements that avoid "Balkanization" of
banking into regions.
BROKERED
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567
DEPOSITS
An important issue that has received considerable attention is the proliferation of insured brokered deposits. Developments in this area are an
example of how the marketplace can respond to
one element of government intervention—in this
case federal deposit insurance—in a manner
that can have unintended and undesirable effects. The deposit insurance agencies are rightly
concerned about the proliferation of brokered
deposits. Indeed, brokered deposits have in a
number of instances facilitated extremely rapid,
unsustainable growth and excessive risktaking
by some institutions that subsequently failed or
are now in serious financial condition. If permitted to expand without appropriate constraints,
such activities could have serious and unintended effects on the insurance funds and the structure of depository institutions.
The Board has taken the position that legislation to permit regulatory agencies to set a cap on
insured brokered deposits—at a low level, such
as 5 percent of deposits or tied to capital—would
be appropriate. I have attached legislative language that would accomplish this. In our view, it
should be added to this legislation.
CONCLUSION
I cannot emphasize strongly enough the urgent
need for definitive congressional action on the
legislation now before you during the current
session. Decisions cannot be postponed any
longer, for if they are, the financial system will
be markedly restructured without guidance from
the Congress. The legislation before you—H.R.
5734—is a positive step, and as indicated, we
support the main thrust, so far as it goes.
What we find lacking in the bill is an appropriate response to the need for striking an appropriate balance in the powers permitted bank holding
companies. Without such provision, the job of
reform will be incomplete, only to be left to later
Congresses, and at risk to the competitive
strength of the banking organizations upon which
we rely so heavily.
Members of the committee have called attention to the degree of pressures and strains in the
banking system that have called into play the
568
Federal Reserve Bulletin • July 1984
federal safety net. I believe we must be extremely careful in drawing conclusions from those
events. While the overall stability of the banking
system should not be in question, in individual
instances there may indeed be a question raised,
for bankers and supervisors alike, about the
conduct of traditional banking business. Appropriate standards for capital, for liquidity, and for
credit risk are continuing questions that deserve,
and are receiving, our attention.
But those questions affecting the use of existing powers are not directly at issue in this
legislation. The matters covered by H.R. 5734 do
deal with some implicit threats to safety and
soundness, particularly from the proliferation of
competition in banking by unregulated institutions. New powers need to be assessed in the
light of those concerns as well. But simply prohibiting banking organizations from competing in
areas consistent with criteria of safety and
soundness—areas that would in fact enhance
their prospects and stability—does not serve
either the consumer or other public policy concerns. To that extent, H.R. 5734 strikes us as
incomplete legislation, deferring issues that need
to be resolved.
In sum, the basic policies of the Bank Holding
Company Act against excessive risk, conflicts of
interest, impartiality in the credit-granting process, and concentration of resources, remain
sound. Those principles are now being undermined by a haphazard pattern of interindustry
acquisitions and by new combinations of banking, securities, insurance, and commercial products. Decisions shaped by market forces working
around present outmoded law will not produce a
coherent framework and can only in the end
undermine and weaken the fabric of the banking
system.
This is a critical time in our financial history.
You have a unique opportunity to adapt the
enduring principles to present needs.
The time is already late. But the issues are
clearly before you, ready for decision and action.
I urge you to move ahead with a sense of
urgency, to protect and strengthen the financial
system.
•
Statement by Paul A. Volcker, Chairman, Board
of Governors of the Federal Reserve
System,
before the Subcommittee on International Economic Policy of the Committee on Foreign Relations, U.S. Senate, June 15, 1984.1
from the exploitation of natural resources, the
expansion of trade has also allowed countries to
raise their living standards by devoting their
labor and physical capital to larger-scale production of manufactures and provision of services.
The pressures of international competition associated with the expansion of world trade have
encouraged the efficient use of resources, helped
to restrain the forces of inflation, and fostered a
continuing stream of new products and technologies that have pervasively affected the lives of all
of us.
The growth of world trade slowed markedly—
in both volume and value—during the first two
years of this decade and turned negative in 1982.
To a large extent that performance reflected the
recession and sluggish growth of economic activity in industrial countries. It was also affected by
the slowdown of international lending to developing countries.
In 1983, the volume of world trade began to
recover, and some forecasters are predicting
growth of about 5 or 6 percent in 1984. The
expansion of U.S. trade contributed importantly
I am pleased to have this opportunity to discuss
the outlook for world trade and U.S. exports in
light of the international debt situation and dollar
interest rates and exchange rates.
The growth of international trade that we have
witnessed over the past several decades has
provided a vital boost to standards of living
throughout the world. During the 1960s and the
1970s, the volume of world trade expanded at an
average annual rate of about 7 percent. That
expansion allowed countries with raw material
resources and fertile agricultural lands to raise
their incomes significantly by marketing their
minerals and crops outside their borders. Apart
1. Chairman Volcker presented similar testimony before
the Subcommittee on International Finance and Monetary
Policy of the Senate Committee on Banking, Housing, and
Urban Affairs on June 14, 1984.
Statements
to the recovery of world trade last year, but, as
most of you are intimately aware, that expansion
occurred disproportionately on the side of our
imports rather than on the side of our exports.
U.S. exports did increase moderately in value
and volume terms during the four quarters of
1983. They continued to increase during the early
months of this year, though the expansion has
been outpaced by that of imports. Thus, today
we face a number of serious economic policy
concerns with international symptoms: our large
and growing international trade deficits, the international debt situation, and the high value of
the dollar.
In approaching these issues, I believe it is right
to emphasize, first, that the past year or more
has been one of vigorous economic advance in
the United States. That, in turn, has been a
powerful force assisting growth in other industrialized countries and easing the difficult adjustment problems of much of the developing world.
At the same time, that progress has been accompanied by some obvious and serious imbalances
in the international economy and financial system. Those international strains are a reflection,
in considerable part, of problems in internal
policy here and abroad.
One aspect of those problems that has received a great deal of attention, internationally as
well as domestically, is the high level of interest
rates in the United States. Those interest rates
have risen over recent months under the pressure of rising private credit demands, as the
economy has grown, superimposed on the need
to finance an already huge federal deficit. High
interest rates have helped attract a growing inflow of capital from abroad, and that inflow has,
for the time being, helped to reconcile rising
investment with the need to finance the deficit.
But that capital inflow is not without heavy
cost to us and to others in the short and in the
long run. The essential counterpart of a net
capital inflow is a massive trade and current
account deficit partly related to an appreciating
dollar. Increases in our interest rates add directly
to the strain on the external payments of heavily
indebted developing countries. And, over time,
the capital flows and trade imbalance will not be
sustainable, posing the risk of further financial
disturbances in the absence of needed policy
adjustments.
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569
If we are to restore better balance in our
international trade accounts and relieve the pressures on our internationally exposed industries,
and if we are to mitigate the burdens that high
interest rates place on borrowing countries without undermining other objectives—including stability and growth at home—we cannot, in my
judgment, escape the need for decisive action to
reduce our federal budget deficit. The more
slowly we proceed in correcting our internal
imbalance, the greater are the risks not only to
our international trade position, but also to the
health of our domestic economy and our financial markets.
The Congress is in the process of taking a first
step toward dealing with the problem over time,
and I welcome that effort. Reducing a substantial
budget deficit, in the United States as elsewhere,
is not easy. Popular support for painful adjustment is particularly difficult to win when the
consequences of inaction are prospective rather
than immediate. That, to many, has appeared to
be the case over the past year and a half as our
economy has performed remarkably well. From
the fourth quarter of 1982 through the first quarter of this year, our gross national product has
expanded at an average annual rate of 63A percent in real terms, while the unemployment rate
has declined from its 103A percent peak at the end
of 1982 to a level of 7V2 percent in May. Moreover, the recovery has brought healthy rates of
investment in producers durable equipment, in
nonresidential structures, and in housing.
Of course, these gains started from a low level,
and for a time it could be argued that an expansionary thrust from the budget deficit could be
helpful. But, as the forward momentum of the
economy continues and private spending and
borrowing increase, the consequences of the
continuing structural budget deficit are apparent.
That is perhaps most apparent in the deterioration of our trade position. One counterpart to the
continuing federal budget deficit at a time of
growing economic activity has been the growing
net inflow of capital from abroad and its counterpart, the widening deficit in our current account
transactions with other countries. In essence,
that growing deficit has permitted us to consume,
to invest, and to buy "more government" than
provided by the increase in national output—the
GNP. In fact, all domestic demands have ex-
570
Federal Reserve Bulletin • July 1984
paneled since the fourth quarter of 1982 at an
annual rate of S3A percent, about 2 percentage
points faster than our gross national product.
Looking at the financial side of the equation,
the net inflow of capital that we have attracted
from abroad is supplementing internal savings
about one-quarter—or more than 2 percent of
the GNP—enabling us to finance our large federal deficit while private spending on consumption
and investment goods has also been growing
rapidly.
Whatever the net benefits and difficulties of
this process to date—and both have been present—the issue for the future is how to promote a
sustainable pattern that meets our interests in
stable and sustained growth at home in a context
of growing world trade and financial stability. In
analyzing these prospects, it is useful to review
developments with respect to our external position since the fourth quarter of 1980, when the
dollar began its extraordinary appreciation.
From that period through the first quarter of this
year, our trade balance has deteriorated roughly
$75 billion, despite a sizable reduction of about
$25 billion in our imports of oil. The adverse
swing in the non-oil trade balance has thus
amounted to about $100 billion. To put that
figure in perspective, the additional $100 billion
of annual sales that our tradable goods industries
might have retained or captured in the absence of
shifts in our non-oil trade flows is two-thirds the
size of the entire annual output of our residential
building sector, which measures around $150
billion in the GNP accounts.
Plainly, the deterioration in our trade position
has had profound effects spread through many
firms and farms in all parts of the United States.
Those engaged in foreign trade or competing
with imports have not shared proportionately in
the strong expansion of the U.S. economy, and
some important industries are still operating well
below 1980 levels. Exports of all major categories of goods have declined since the fourth
quarter of 1980. Measured in real terms or at
constant base-period prices, exports of agricultural goods declined 4 percent on balance, while
exports of nonagricultural goods declined about
15 percent. Among the leading categories of
nonagricultural goods, exports of both machinery and industrial supplies declined nearly 20
percent. The longer our exports remain de
pressed, the more difficult it becomes to maintain
marketing networks, and the more costly and
difficult it becomes to recover foreign sales.
The strong expansion of aggregate demand in
the United States relative to aggregate demand in
foreign industrial economies has contributed importantly to the widening of our trade deficit. In
that sense, some of the deterioration in our trade
position is cyclical and reflects not the loss of
markets at home or abroad, but rather the absence of proportionate gains. In addition, exports have dropped sharply to developing countries that are burdened with large external debts
and are in the process of readjusting their economies and their balance of payments positions.
This is particularly true with respect to our
neighbors in Latin America; our exports to that
area have dropped $15 billion since the fourth
quarter of 1980. Together, the change in our
cyclical position relative to foreign industrial
countries and the decline in our exports to debtburdened developing countries appear to explain
one-third to one-half of the adverse swing in our
non-oil trade balance.
The dramatic appreciation of the dollar has
also had an important effect. Since the fourth
quarter of 1980 the value of the dollar has appreciated about 45 percent on average against the
currencies of foreign industrial countries. Over
the same period, U.S. price performance has
been somewhat better than the average in foreign
industrial economies, but even allowing for the
differential in inflation, the dollar has appreciated
substantially. No doubt that appreciation of the
dollar has helped to maintain the progress made
against inflation during a period of vigorous
recovery. But, if it proves inconsistent with a
more sustainable trade position, we cannot count
on the current strength of the dollar to persist
indefinitely.
The dramatic appreciation of the dollar reflects
a number of forces, and the outlook for the dollar
is difficult to predict. Apart from the relatively
high level of interest rates in the United States,
the performance of our economy and a sense of
confidence in our political stability have helped
encourage capital inflows, particularly when tensions have increased abroad. The degree to
which these forces will continue in the months
and years ahead cannot, of course, be assessed
with certainty, but the point is often made that,
Statements
in a purchasing power sense, the dollar is now
"overvalued." Such calculations are necessarily
imprecise. They differ depending upon the particular type of price index that is used—consumer prices, producer prices, export prices, and so
forth—and upon the time period that is chosen as
the base period for the calculations.
There can be no doubt, however, that the
dollar has risen in recent years substantially
more than in proportion to movements in relative
price levels here and abroad. Thus, the value of
the dollar is substantially higher today than
would be warranted solely on the basis of
changes in the relative levels of U.S. and foreign
price indexes.
But exchange rates are clearly influenced—in
the short and even in the longer run—by factors
other than relative rates of general price inflation. This often is the case when there has been a
substantial change in the relative levels of interest rates, as has been the case between the
United States and its trading partners in recent
years. In principle, large capital inflows could
persist for some time ahead even though the
United States is now becoming a net debtor
internationally. But there is a serious question as
to whether the situation is in our best interest or
that of other countries. High interest rates pose
severe problems for important sectors of the
domestic economy and certainly for the indebted
countries. Moreover the sustainability of our
trade deficits and net capital inflows over a
prolonged period are questionable, to say the
least.
A precipitous large decline in the dollar, whatever its immediate cause, would not be in our
interest. If related to a reduced willingness to
invest in, or lend to, the United States, the
burden of financing the budget deficit, in competition with private needs for credit, would be
increased. Domestic prices and costs would be
affected. And, the prospects for achieving lower
interest rates would be further clouded.
All of that emphasizes the key importance of
maintaining confidence in our economic policies
and outlook. There are implications for monetary
policy because that confidence must be rooted in
a sense of conviction that inflation will remain
under control. And there are clear consequences
for fiscal policy as well because of understandable concerns that excessive fiscal stimulus may
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571
regenerate inflationary forces or stronger financial market pressures, or both.
There is a straightforward and constructive
way to deal with concerns of the kind—a way
fully consistent with purely domestic needs. I am
thinking, of course, of credible action to put the
structural budget deficit on a course that is
headed toward balance within a reasonable time
period. Apart from the direct benefits of taking
pressures off financial markets and reversing
recent increases in interest rates, we would become less dependent on inflows of capital from
abroad to balance our savings with our investment needs. Over time, the dollar should move.,
into an equilibrium consistent with a stronger,
and sustainable, trade position. And, the risk of
disturbingly large declines in the dollar should be
ameliorated because U.S. policies would earn
the continued respect and confidence of the
financial community.
While I will not try to suggest an appropriate
"equilibrium" value of the dollar over time, I do
believe that balance will be struck at a higher
level, and the risks of sharp and abrupt changes
reduced, to the extent that we can build upon the
progress against inflation. I also believe it is not
in our interest to see abnormal, and ultimately
temporary, strength in the dollar when such
strength is really a reflection of imbalances in our
domestic policies and markets.
Sometimes it is suggested that intervention in
exchange markets can be useful to smooth these
fluctuations, or as some would suggest now, to
depress the dollar in the interests of our trade
position.
In my judgment, exchange market intervention
can play a useful role in dealing with disturbed
market conditions or, occasionally, in signaling
the desires or policy intent of the financial authorities in various countries, particularly when
the approach is coordinated among them. But its
role is subsidiary: experience strongly suggests
that intervention alone is a limited tool that
cannot, itself, greatly or for long change market
exchange rates unless accompanied by changes
in more basic policies. In present circumstances,
as I have indicated, we have come to rely on
inflows of capital to finance our domestic needs.
So long as the fiscal situation is unchanged and
private credit demands are high, an intervention
approach that resulted directly or indirectly in
572
Federal Reserve Bulletin • July 1984
curtailing that flow would risk undesirable consequences for interest rates. Those risks would be
particularly great if the United States were seen
to be embarking on a deliberate policy of depreciation.
Others suggest we attack our external deficits
directly, either by erecting barriers to capital
flows or by restricting imports. Again, such
measures do not go to the root of the difficulty.
To the extent direct measures were successful
in reducing the net capital inflow, real interest
rates in the United States would presumably rise,
other things equal, as part of the process of
replacing the lost saving from abroad with an
increase in private domestic saving or a reduction in private domestic investment. The burden
of our budget deficit on interest-sensitive sectors
of the U.S. economy would be intensified; the
problem would be shifted without resolving it.
That would be true quite apart from the other
compelling considerations against direct controls, which would be administratively difficult
and contrary to our basic interest in open markets.
Yielding to the pressures for intensified import
restrictions also could only complicate our problems. Beware, in particular, of arguments suggesting that import restrictions designed to benefit one industry or another will produce more
jobs for the economy as a whole. To an individual firm or industry, shutting off import competition offers immediate advantages; more generally, it is argued that each billion dollars of the
trade deficit represents a billion dollars of domestic output foregone, other things equal. Using the rule of thumb that each billion dollar's
worth of domestic output requires about 25,000
workers, it is then calculated that one million
jobs could be created by reducing the trade
deficit $40 billion.
The pitfalls in such reasoning should be clear
at a time when the economy is already expanding
strongly: a more rapid growth of output and
employment than we have experienced over the
past year and a half, combined with reduced
capital inflows, would likely have been reflected
in more pressures on financial markets at the
expense of other sectors of the economy.
More generally, it should not be overlooked
that the decision to protect one industry invariably imposes costs elsewhere. It is costly to
other industries if foreign countries retaliate
against U.S. exports, if import restrictions lead
to higher dollar exchange rates than would otherwise prevail, or if costs rise. Protection typically
leads also to higher prices and less choice for
consumers and can be politically difficult to
terminate, as exemplified by the current export
restraint program on Japanese automobiles.
Still another essential reason for resisting protectionist pressures is the adverse implications of
protection for the export earnings of the developing countries. We encourage those countries to
take effective measures to build their productive
structures over time, and we urge strong steps to
adjust their economies in the short run to generate the payments due on their debts. But those
processes cannot ultimately succeed if the United States and other industrial countries protect
their own markets from the competitive exports
of the developing countries.
Those developing countries have traditionally
been an important market for our exports, and
they have the potential to be much larger. That
process of two-sided trade is fundamentally a
healthy one—a process that raises our own average productivity and real income over time at the
same time that it promotes growth in the developing countries. In a context of growing economies, we should be able to adjust to international
competition so that we can ease the process of
transition for impacted workers and firms.
That, of course, is more easily said than done.
It is particularly difficult to anticipate adjustment
and to accept the pressures of international competition in an environment of large and fairly
rapid swings in exchange rates. Moving toward a
healthier process of international development
and competition over time requires that we discipline our fiscal and monetary policies to provide
the conditions for more stable exchange rates.
This brings me back to the central thrust of my
remarks—the need here and elsewhere to
achieve better balance in our basic policies and a
more sustainable pattern of external transactions.
Much has been achieved in these past few
years to put the economy on a sounder footing—
too much, at too great a cost, to see it all
jeopardized now. Our recovery has been proceeding rapidly, with little acceleration of inflation. But the combined credit demands of the
Statements
to Congress
573
federal government and the private sector have
generated disturbing pressures on interest rates,
on developing countries, and on exchange rates.
In concept, we can visualize an economic
expansion characterized by relatively high interest rates and by strong private consumption and
a large budget deficit That is what we are having.
But it has costs—costs reflected in huge trade
deficits and net borrowing from abroad, potential
problems for housing and other interest-sensitive
sectors, and risks of exchange rate and financial
instability.
What is at issue is the sustainability of growth
here and abroad, and our prospects for further
progress toward price stability. In the end, I
know of no way to deal with these risks, and to
provide solid assurance that we can build on the
real progress of the past, other than to carry
through on the efforts to deal with the federal
deficit.
•
Statement by John E. Ryan, Director, Division
of Banking Supervision and Regulation, Board
of Governors of the Federal Reserve
System,
before the Subcommittee on General Oversight
and Renegotiation of the Committee on Banking,
Finance and Urban Affairs, U.S. House of Representatives, June 20, 1984.
the spotlight on currency transactions that are
out of the ordinary. Finally, the Federal Reserve
issues, redeems, destroys, and processes currency for banking organizations. In this capacity, it
provides technical expertise and information to
law enforcement agencies on banking and currency matters in connection with drug-related
and other criminal investigations.
The Federal Reserve System has primary supervisory authority over approximately 1,000
state member banks and 150 Edge corporations,
domestic subsidiaries of banks that are licensed
to engage in international banking. The System is
charged by the Congress for ensuring that these
commercial banking organizations are operated
in a safe and sound manner and for determining
their compliance with U.S. banking laws and
regulations, including the Bank Secrecy Act. We
discharge our safety and soundness and compliance responsibilities, largely through the conduct
of on-site supervisory examinations and through
the referrel of possible violations of law to the
designated agency with primary responsibility
for enforcing the relevant statute. The Federal
Reserve also takes civil enforcement action,
such as the issuance of cease and desist orders,
to prevent violations of law and unsound banking
practices and to protect the bank and the bank's
depositors from their adverse effects.
In carrying out its responsibilities for state
member banks, the Federal Reserve often relies
on examinations conducted in alternate years by
state banking authorities. These procedures are
intended to reduce the burden associated with
overlapping regulatory authority to strengthen
the dual banking system, and to further cooperation between federal and state banking agencies.
I appreciate the opportunity to appear before this
subcommittee on behalf of the Board of Governors to review the role of the Federal Reserve in
monitoring compliance with the Bank Secrecy
Act and its reporting requirements, and in assisting the primary law enforcement authorities in
discharging their enforcement responsibilities.
At the outset, I think it may be useful to describe briefly the activities and responsibilities of
the Federal Reserve that have a bearing on the
concerns of this subcommittee. First, as a bank
supervisory and regulatory agency, the Federal
Reserve refers to the appropriate law enforcement agency any evidence of possible criminal
conduct that is brought to light through its examination and supervisory activities. Further, the
Federal Reserve has specific responsibilities for
monitoring compliance with the requirements of
the Bank Secrecy Act of the financial institutions
under its direct supervision. This responsibility
was delegated to the Federal Reserve and other
bank regulatory agencies by the Department of
the Treasury, which has primary responsibility
for the enforcement of the statute. Among other
provisions, the Bank Secrecy Act requires financial institutions to report certain currency transactions in excess of $10,000 to the Treasury
Department. The reporting and other requirements of the Bank Secrecy Act were designed to
frustrate organized criminal elements by putting
574
Federal Reserve Bulletin • July 1984
The examination procedures followed in monitoring bank compliance with the Bank Secrecy
Act evolved over time and have expanded as our
experience with enforcement has broadened. Beginning with the passage of the Bank Secrecy Act
in 1970, Federal Reserve examiners were instructed as to its requirements in examination
schools and were provided with examination
procedures to check compliance. The original
compliance checklist, worked out in consultation
with the Department of the Treasury, formulated
more detailed examination guidelines that were
forwarded to the examiners for implementation.
The examination procedures presently in use
by the banking agencies to monitor compliance
with the Bank Secrecy Act were revised in 1981.
The purpose of these revisions was to strengthen
the agencies' ability to determine if banks are
complying with the act and to provide the Treasury Department with better and more comprehensive information on possible violations of the
act. In revising the examination procedures, the
banking agencies incorporated comments and
suggestions from the staffs of the Treasury Department and the General Accounting Office.
The procedures are designed to ensure that banking organizations have established internal systems and procedures to ensure compliance. For
those institutions with deficiencies or those that
have engaged in unusually large cash shipments,
the procedures call for extensive testing of actual
transactions to determine if reports are being
prepared as required by the regulations of the
Bank Secrecy Act.
In addition to the on-site evaluation of bank
compliance, the Federal Reserve reports to the
Treasury Department on a quarterly basis those
institutions cited for apparent violations of certain of the reporting and recordkeeping requirements. We also make specific referrals to the
primary law enforcement authority whenever a
situation or violation uncovered during an examination appears to involve possible criminal activity or other unusual circumstances. These notification efforts serve as the basis for further
review by the federal enforcement agencies and,
in some instances, may result in the initiation of
criminal investigations by the appropriate authorities. In connection with these reports and
referrals, the Federal Reserve responds to follow-up questions by enforcement agencies con
cerning apparent violations and possible criminal
investigations. Moreover, our examiners have
conducted special examinations of state member
banks for possible violations of the Bank Secrecy
Act, such as the Operation Greenback project in
south Florida, and the Federal Reserve remains
committed to assisting law enforcement agencies, under appropriate circumstances, in the
conduct of special investigations of possible violations. These steps reflect a long-standing desire
and commitment on the part of the Federal
Reserve to cooperate with the U.S. Treasury and
the primary law enforcement agencies in ensuring compliance with the Bank Secrecy Act.
The Federal Reserve also has statutory responsibility for reviewing notifications of
changes in ownership and control involving state
member banks. In passing upon such notifications, the banking backgrounds of the new principals and any known violations of law are
carefully reviewed.
As a result of its responsibilities for processing
currency, the Federal Reserve cooperates with
the Treasury Department and other law enforcement agencies by providing information concerning currency flows into and out of the Federal
Reserve Banks and their branches that result
from the requests of banks for currency and coin.
This information is provided monthly to a number of other agencies and can assist the law
enforcement authorities in determining which
regions of the country have a pattern or volume
of cash transactions that may warrant further
investigations. Several years ago, one study of
these flows by the Treasury Department showed
what appeared to be unusually heavy inflows of
currency at the Miami Branch of the Federal
Reserve Bank of Atlanta, particularly in $50 and
$100 bills, denominations that are reportedly
popular with narcotics operatives. Using the
records of the Federal Reserve, and the currency
transaction reports filed by banks, a number of
financial institutions in Florida were selected for
review for compliance with the Bank Secrecy
Act as part of the effort known as Operation
Greenback. Each federal banking agency has
conducted examinations as part of this ongoing
effort. Moreover, each Federal Reserve Bank
has been instructed to establish internal systems
and operating procedures to notify the primary
banking agency when an institution under that
Statements
to Congress
575
agency's jurisdiction experiences unusually large
or abnormal currency flows. This procedure can
assist the banking agencies in identifying institutions that may require greater scrutiny to determine compliance with the reporting regulations.
Despite some isolated instances of noncompliance, we believe that the overwhelming majority
of senior management of the financial institutions
under the supervision of the Federal Reserve do
not knowingly permit their institutions to be used
as vehicles for laundering narcotics-related or
other illicit monies. Indeed, the preponderance
of commercial banks are sound, well-run institutions with honest and capable management. The
majority of those banks cited for noncompliance
have responded to examiner criticism and have
instituted corrective action to ensure future compliance with the Bank Secrecy Act.
In the final analysis, however, we do not
believe that it is possible for our bank examiners,
or for the bankers themselves for that matter, to
be absolutely certain that illicit monies are not
flowing through the banks. As we all know,
currency, being fungible with no lasting identity
to any particular transaction, is extremely difficult to trace, and there seem to be an infinite
number of ways for the dishonest to frustrate or
circumvent necessarily rigid statutory or regulatory requirements. Nevertheless, we share the
subcommittee's concern over the obvious adverse effects that the flow of illicit monies has on
the social fabric of our country and on the
integrity of financial institutions, and will continue to strive to ensure that our examination
techniques serve as an effective mechanism to
monitor compliance with the Bank Secrecy Act.
Statement by Frederick R. Dahl, Associate Director, Division of Banking Supervision and Regulation, Board of Governors of the Federal Reserve System, before the Subcommittee
on
International Economic Policy and Trade of the
Committee on Foreign Affairs, U.S. House of
Representatives, June 20, 1984.
prior approval procedure, for such investments.
The investments can be made, unless specifically
disapproved by the Board, within, at most, 90
days after the notice has been accepted. Second,
the legislation establishes quite limited grounds
on which the Board may object to a proposed
investment. The Board may disapprove a proposed investment only if the Board determines
disapproval is necessary to prevent unsafe and
unsound banking practices, undue concentration
of resources, decreased or unfair competition, or
conflicts of interest; or if the Board finds that the
investment would affect the financial and managerial resources of a bank holding company to an
extent that is likely to have a materially adverse
effect on the safety and soundness of a subsidiary
bank. The only other basis for disapproving an
investment is that the bank holding company
fails to furnish information about the proposal
that is required by regulation.
I appreciate the opportunity to appear before this
subcommittee on behalf of the Board of Governors to discuss the role of the Federal Reserve in
implementing the Bank Export Services Act.
The Bank Export Services Act, which is Title II
of the Export Trading Company Act of 1982,
authorizes bank holding companies to acquire
equity interests in export trading companies and
empowers the Federal Reserve Board to act on
proposals to do so. It is my intent today to give a
brief overview of the regulations adopted by the
Board to implement the legislation and to summarize the holding company proposals acted
upon by the Board to date. This overview is
followed by a description of the current activities
of the export trading companies owned by bank
holding companies.
The Bank Export Services Act envisages a
fairly restrictive role for the Federal Reserve in
relation to investments by bank holding companies in export trading companies. First, it establishes a notification procedure, as opposed to a
THE BOARD'S
REGULATIONS
The Board's regulations implementing the Bank
Export Services Act are brief. Their principal
purpose is to clarify a few areas of ambiguity in
the statutory language. For the most part, these
clarifications reflect an attempt to limit the potential for conflicts of interest that might grow
576
Federal Reserve Bulletin • July 1984
out of bank affiliation with an export trading
company. The final regulations were promulgated on June 2, 1983. A copy of the regulations is
attached as appendix A. 1
In adopting final regulations, there were three
principal issues. The first issue was the definition
of an export trading company in which a bank
holding company may invest. The problem was
that the statutory language could be interpreted
to permit a bank holding company to invest in
any company that principally provides its own
services to non-U.S. residents. For example, the
statute might be read to permit a general insurance underwriting company to qualify as an
export trading company that could be owned by
a bank holding company so long as the customers
were non-U.S. residents. A number of commenters on the proposed regulations argued for
such an interpretation. The Board, however,
read the legislative history of the Bank Export
Services Act to support a narrower interpretation—namely, that the export trading company
should serve principally as an intermediary for
producers and suppliers of goods and services in
the foreign marketing and sale of their products
by providing a range of export trade services.
Another aspect of the definition of an export
trading company centered on the statutory requirement that a bank holding company-controlled export trading company should be "principally engaged in exporting." The Board
determined that a test that would be liberal, yet
at the same time consistent with the congressional purpose of promoting exports, and not simply
trade, would be a 50 percent test: at least half of
the revenues of a bank holding company-affiliated export trading company, as measured over a
two-year period, must be derived from exporting, or facilitating the exportation of, goods and
services. In this regard, revenues derived from
trade between third countries (two countries
other than the United States) and countertrade
(an export from a third country undertaken as a
quid pro quo for allowing U.S. goods to be
imported into that country) are counted as nonexport revenues for the purposes of this test.
Again, the rationale for this determination was
that the Bank Export Services Act was export
legislation, not trade legislation. Furthermore,
these types of transactions might result in providing substitutes for the export of U.S. goods.
The third issue was whether the collateral
restrictions of section 23(a) of the Federal Reserve Act (12 U.S.C. § 371(c)) should apply to
transactions between the export trading company and the affiliated bank of the bank holding
company. Broadly speaking, credit transactions
between a bank and its parent bank holding
company and its nonbank subsidiaries are restricted in amount and must be supported by
marketable collateral. The question arose with
respect to export trading companies because the
Bank Export Services Act has a provision stating
that no provision of federal law in effect on
October 1, 1982, relating to collateral requirements shall apply with respect to extensions of
credit from the subsidiaries of a bank holding
company to its affiliated export trading company.
On October 15, 1982, however, the Garn-St
Germain Depository Institutions Act of 1982
revised section 23(a) in its entirety and established new collateral requirements for affiliate
lending. While some commenters on the Board's
proposed regulations argued that these new collateral provisions should not apply to export
trading companies, the Board determined, on the
basis of the statutory language and its understanding of the legislative history, to apply the
restrictions to loans and extensions of credit by a
bank to its affiliated export trading company. On
the other hand, in order to allow an export
trading company to obtain normal trade financing from an affiliated bank, the regulations include a waiver of the collateral requirements
where the bank provides a letter of credit for the
account of its affiliated export trading company,
or advances funds for the purchase of goods for
the resale of which the export trading company
has a firm order, and when the bank has a
security interest in the goods, or proceeds from
the sale of the goods, equal to the value of the
letter of credit or advance. Furthermore, the
Board indicated that it might grant additional
waivers based on specific requests.
1. The attachments to this statement are available on
request from Publications Services, Board of Governors of
the Federal Reserve System, Washington, D.C. 20551.
The initial notifications to invest in export
trading companies were all acted on by the
Board. In December 1983, however, on the basis
of experience up to that time, the Board conclud-
Statements
ed that export trading company notifications
could be acted upon by the Reserve Banks under
delegated authority, which could expedite the
processing. The criteria for processing notifications under delegated authority are: (1) the proposed export trading company is to be a wholly
owned subsidiary, or ownership is to be shared
only with individuals involved in the operation of
the export trading company; (2) the bank holding
company investor and its lead bank meet the
minimum capital adequacy guidelines of the
Board and the Comptroller of the Currency or
have capital enhancement plans acceptable to
the appropriate supervisory authority; (3) the
proposed export trading company will take title
to goods only against firm orders, except that the
company may maintain an inventory of goods of
up to $2 million; (4) the proposed activities of the
company do not include product research or
design, and product modification; and (5) the
proposed leveraging of the export trading company (assets: capital) does not exceed 10:1.
NOTIFICATIONS
ACTED
UPON
TO DATE
As of this time, the Federal Reserve System has
acted upon 26 notifications, involving 28 bank
holding companies, to establish export trading
companies. The Board has not objected to any of
these notifications.
Of the 28 bank holding companies that have
filed notices to date, nine are multinational banking organizations, five others have assets of more
than $5 billion, seven have assets between $1
billion and $5 billion, six have assets of less than
$600 million, and one is a foreign banking organization.
For the most part, these proposals have involved the de novo formation of an export trading company as a wholly owned subsidiary of the
bank holding company. There have been a few
exceptions to this procedure, however. Several
proposals have involved investments in going
concerns when the attraction has been primarily
the skills and expertise of the people in the
companies. These companies have been small.
There have also been proposals involving joint
ventures. The most notable of these ventures is a
partnership involving First Chicago Corporation
and Sears World Trade. Another instance is an
to Congress
577
export trading company owned by three relatively small New Jersey bank holding companies.
The proposals reviewed by the Board can be
separated into two broad groups. The first group
consists of those in which the export trading
company was conceived as furnishing primarily
financing and export trade services. These services include market research, product research,
freight forwarding, consulting, and advisory
services. The second group is composed of those
companies that were expected to engage in trade
transactions as well. Although this would involve
taking title to goods, these companies planned to
do so only against firm orders. No bank holding
company said that it would try to make an
overseas market for goods that they had bought
and were holding in inventory pending discovery
of a buyer.
Turning to the experience of bank-affiliated
export trading companies, it has to be said at the
outset that the first proposal by a bank holding
company to establish such a company was acted
on by the Board in May 1983, only a little over a
year ago. Actually, more than one-third of the
proposals date only from the beginning of this
year. Thus, it is not surprising that most of them
are still in the formative stage—getting organized, looking for personnel, identifying markets
and potential customers, and the like. In those
companies in which operations have commenced, there are no clear indications of how
their operations will develop in either size or
character. Only a few have done trade transactions, and those transactions have generally been
quite small. Discussions with these institutions,
from time to time, suggest that exploration and
experimentation will be the prime characteristics
of many for some time to come. In short, it
appears far too early to evaluate the success of
the legislation and to determine whether the
present rules contain impediments to the effective operation of these companies.
Later this year, the Board will be reviewing
the progress of export trading companies affiliated with bank holding companies. That review is
prompted by the requirement in the Bank Export
Services Act that the Board make a report to the
Senate and House Banking Committees on or
before October 2, 1984, on the implementation of
the Bank Export Services Act and on any
changes in the legislation.
•
579
Announcements
MARTHA
MEMBER
R. SEGER.- APPOINTMENT
AS A
OF THE BOARD OF
GOVERNORS
On July 2, 1984, the President announced the
recess appointment of Martha R. Seger as a
member of the Board of Governors. Dr. Seger
took the oath of office, administered by Chairman Volcker, in the Board's building on that
same day. Dr. Seger succeeds Nancy Hays
Teeters whose term as a Board member expired
on January 31, 1984. Mrs. Teeters resigned as a
Board member on June 27, 1984.
On May 31, the President announced his intention to nominate Dr. Seger as a member of the
Board, and confirmation hearings were held by
the Senate Banking Committee on June 19, 20,
21, and 22. The Committee approved the nomination on June 28, but Congress recessed before
the nomination could be brought to the Senate
itself.
The text of the White House announcement of
May 31 follows:
The President today announced his intention to
nominate Martha R. Seger to be a Member of the
Board of Governors of the Federal Reserve System for
a term of 14 years from February 1, 1984. She would
succeed Nancy Hays Teeters.
Dr. Seger is a financial economist who has been
serving as Professor of Finance at Central Michigan
University since 1982. Previously, she was Commissioner of Financial Institutions for the State of Michigan in 1981-1982 and Associate Professor of Economics and Finance at Oakland University in 1980. She has
also taught at the University of Michigan and the
University of Windsor. Dr. Seger has had ten years'
experience in commercial banking including serving as
Chief Economist for Detroit Bank and Trust for over
seven years. Prior to this she was Financial Economist
in the Capital Market Section at the Federal Reserve
Board.
Dr. Seger is a Director of Comerica, Inc., and the
Comerica Bank-Detroit. She is a Member of the National Association of Business Economists, the American Economics Association, the Economic Club of
Detroit and the Women's Economic Club.
She has three degrees from the University of Michigan, including an M.B.A. in Finance and a Ph.D. in
Finance and Business Economics. Dr. Seger was born
February 17, 1932, in Adrian, Michigan, and now
resides in Bloomfield Hills, Michigan.
In submitting her resignation to accept a position in private industry, Mrs. Teeters sent the
following letter to the President:
June 27, 1984
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
Since my term as a Member of the Board of Governors
of the Federal Reserve System has expired and you
have nominated Martha R. Seger to the position I have
occupied, I therefore resign. I have truly enjoyed
serving on the Federal Reserve Board and wish my
colleagues and successor well.
Sincerely,
Nancy H. Teeters
Governor Teeters received the following reply
to her letter of resignation:
The White House
Washington
July 13, 1984
Dear Mrs. Teeters:
Thank you for your letter, and I accept your resignation as a Member of the Board of Governors of the
Federal Reserve System, effective June 27, 1984.
Your service to the Nation in this capacity has been
greatly appreciated. I know that in the years ahead you
will be able to look back with pride on your accomplishments.
You may be sure that you have my best wishes for
every future success.
Sincerely,
Ronald Reagan
580
Federal Reserve Bulletin • July 1984
FINANCIAL RESULTS
OPERATIONS
OF PRICED
2. Pro forma income statement for priced services of
Federal Reserve Banks, for the quarter ended
March 31, 1984
SERVICE
The Federal Reserve Board has issued a report
providing financial results of Federal Reserve
priced service operations for the quarter ended
March 31, 1984.
The Board issues a report on priced services
annually and a priced service balance sheet and
income statement quarterly. The financial statements, which are shown in tables 1 and 2, are
designed to reflect standard accounting practices, taking into account the nature of the Federal Reserve's activities and its unique position in
this field.
ASSETS
147.4
1,080.6
50.1
4.3
3.5
312.4
Total assets
1,868.9
LIABILITIES
1,228.0
312.4
57.9
Total short-term liabilities
Total liabilities
1,598.3
.4
85.9
86.3
1,684.6
Equity
184.3
Total liabilities and equity
1,868.9
NOTE. Accompanying notes are an integral part of these financial
statements.
NOTES
TO THE FINANCIAL
STATEMENTS
Balance Sheet (table 1)
Federal Reserve assets are classified as short- or long-term. Shortterm assets represent assets such as cash and due from balances,
Income from operations
Imputed costs
Interest on
Interest on short-term debt
Interest on long-term debt
Sales taxes
FDIC insurance
109.5
30.1
float
12.2
.8
2.2
1.2
.3
16.7
13.4
27.9
26.4
1.5
14.9
Imputed income taxes
5.8
Net income
9.1
Targeted return on equity
270.6
Total long-term liabilities
111.0
1.5
5.9
NOTE. Details may not add to totals due to rounding. Accompanying notes are an integral part of these financial statements.
169.1
99.2
2.3
Total long-term assets
Long-term liabilities
Obligations under capital leases
Long-term debt
139.6
MEMO
1,598.3
Short-term liabilities
Clearing balances
Balances arising from early credit of
uncollected items
Short-term debt
Services provided to depository institutions . . .
Expenses
Production expenses
LESS: Board approved subsidies
Income before income taxes
Total short-term assets
. „™,„»
Amount
Income
Other income and expenses
Investment income
Earnings credits
Millions of dollars
Long-term assets
Premises
Furniture and equipment
Leases and leasehold improvements
Income or
expense item
Income from operations after imputed costs . . .
1. Pro forma balance sheet for priced services of
Federal Reserve Banks, March 31, 1984
Short-term assets
Imputed reserve requirements on clearing
balances
Investment in marketable securities
Receivables
Materials and supplies
Prepaid expenses
Net items in process of collection (float)
Millions of dollars
marketable securities, receivables, materials and supplies, prepaid
expenses, and items in the process of collection. Long-term assets are
primarily fixed assets, such as premises and equipment.
The imputed reserve requirement on clearing balances and investment in marketable securities reflects the Federal Reserve's treatment
of clearing balances maintained on deposit with Reserve Banks by
depository institutions. For balance sheet and income statement
presentation, clearing balances are reported on a basis comparable
with reporting of compensating balances held by respondent institutions with correspondents. That is, respondent balances held with a
correspondent are subject to a reserve requirement as determined by
the Federal Reserve. This reserve requirement must be satisfied either
with vault cash or with non-earning balances maintained at a Reserve
Bank. Following this model, clearing balances maintained with Reserve Banks for priced service purposes should also be subject to
reserve requirements. Therefore, a portion of the clearing balances
held with the Federal Reserve are identified on the balance sheet as
imputed reserve requirements on clearing balances, representing vault
cash and due from balances. The remaining amount would be available for investment. For these purposes, the Federal Reserve assumes
that all such balances would be invested in three-month Treasury bills.
Other short-term assets reflect the total of either (1) assets directly
used in providing priced services or (2) an allocation of the portion of
joint assets used in providing priced services. Receivables primarily
reflect amounts due the Reserve Banks for priced services that have
been provided to institutions for which payment has not yet been
received. Receivables also include that share of suspense account and
difference account balances related to priced services.
Materials and supplies reflect short-term assets necessary for the
ongoing operations of priced service areas for which payment has
been made. Prepaid expenses represent other prepaid items such as
salary advances and travel advances for priced service personnel and
the portion of priced service leasehold improvements that will be
amortized to current expense during the year.
Announcements
Net items in the process of collection is the amount of float that will
be added to the cost base subject to recovery. Thus, it is the difference
between cash items in the process of collection and deferred availability cash items. Therefore, the asset item on the balance sheet
corresponds to the amount of float that the Federal Reserve must
recover through fees to satisfy the Monetary Control Act. Conventional accounting procedures would call for the gross amount of cash
items and deferred availability items to be included on a balance sheet.
However, because the gross amounts have no implications for income
or costs and no implications for the calculation of the private sector
adjustment factor (PSAF), they are not reflected on the pro forma
balance sheet.
Long-term assets that are reflected on the balance sheet have been
allocated to priced services using a direct determination basis. This
approach was adopted along with other changes in calculating the
PSAF for 1984. The direct determination method utilizes the Federal
Reserve's Planning and Control System (PACS) to directly associate
single-purpose assets and to apportion assets used jointly in the
provision of different services to priced and non-priced services.
Additionally, also resulting from changes to the PSAF methodology,
an estimate of the assets of the Board of Governors related to the
development of priced services has been included in long-term assets
in the premises account.
Long-term assets also include an amount for capital leases. In
accordance with generally accepted accounting principles, the Federal
Reserve in 1984 has begun to capitalize leases that qualify for
capitalization. Leases had not been shown previously on Federal
Reserve balance sheets due to immateriality. While the impact in the
future is also likely to be immaterial, procedures have been established in order to disclose these assets on a basis consistent with
accounting and disclosure practices of private sector firms. These
assets also include leasehold improvements. The current portion of
leasehold improvements has been included in prepaid expenses.
A matched-book capital structure for those assets that are not "selffinancing" has been used to determine the liability and equity
amounts. Short-term assets are financed with short-term debt. Longterm assets are financed with long-term debt and equity in a proportion equal to the ratio of long-term debt and equity of the bank holding
companies used in the private sector adjustment model.
Other short-term liabilities include clearing balances maintained at
Reserve Banks and deposit balances arising from float. Other longterm liabilities consist of obligations on capital leases.
System Income Statement
(table 2)
The income statement reflects the income and expenses for priced
services. Included in these amounts are Board approved subsidies,
imputed float costs, imputed financing costs, and the income and cost
related to clearing balances.
Revenues reflect charges to depository institutions for priced services. These revenues are realized through one of two methods: direct
charges to an institution's deposit account or charges against accumulated earnings credits. Income includes charges for per-item fees,
package fees, explicitly priced interterritory check float, account
maintenance fees, shipping and insurance fees, and surcharges. Production expenses include direct, indirect, and other general administrative expenses generated by priced service activities. Other expenses relate to the expenses of Board staff working directly on the
development of priced services and amounted to $0.4 million in the
first quarter of 1984.
Board approved subsidies consist of a program established for the
commercial automated clearinghouse (ACH) service. The incentive
pricing program established for the ACH service provides for fee
structures designed to recover an increasing share of expenses. In
1984, ACH revenues are intended to recover 60 percent of costs plus
the private sector adjustment. This incentive pricing program is being
phased out, with complete elimination planned in 1985.
Imputed float costs include the value of float that was intended to be
recovered, either explicitly or through per-item fees, during the first
quarter of 1984 for the commercial check, automated clearinghouse,
and book-entry securities transfer services. In the second quarter of
1984, float recovery for the noncash coupon collection service will be
implemented. Also included in imputed costs is the interest on shortand long-term debt used to finance priced service assets through the
PSAF and the sales taxes and FDIC insurance, which the Federal
Reserve would have paid had it been a private sector firm.
581
Other income and expenses are comprised of income on clearing
balances and the cost of earnings credits granted to depository
institutions. Income represents the average coupon equivalent yield
on three-month Treasury bills applied to the total clearing balance
maintained, adjusted for the effect of reserve requirements. Expenses
for earnings credits were derived by applying the average federal
funds rate to the required portion of the clearing balances. The
Federal Reserve is committed to adjusting the federal funds rate at
which earnings credits are paid on clearing balances in order to take
into account the effect of reserve requirements. The software changes
necessary to implement this adjustment are complex and will take
some time to complete; however, the adjustment is expected to be
made starting November 1, 1984. Had the reserve adjustment to
earnings credits been in place in the first quarter, and assuming no
resulting shift in clearing balances, the expenses of earnings credits
would have been about $24.6 million with a resulting increase in net
clearing balance income of $1.8 million and an increase in net income
of $1.2 million to $10.3 million.
Imputed income taxes are calculated at the effective tax rate used in
the PSAF calculation applied to the net income before taxes.
The targeted return on equity represents the after-tax rate of return
on equity that the Federal Reserve would have earned based on a
model of bank holding companies.
COORDINATION
ACTIVITIES
OF PRICED
SERVICE
Effective July 1, 1984, the Federal Reserve
Board has made the following changes relating to
the management and coordination of the priced
service activities of the Federal Reserve Banks.
• Edward G. Boehne, President of the Federal
Reserve Bank of Philadelphia, has been appointed a member and Chairman of the Pricing Policy
Committee (PPC). He succeeds E. Gerald Corrigan, President of the Federal Reserve Bank of
Minneapolis. Mr. Corrigan will continue to serve
as an ex-officio member of the Committee.
• Henry R. Czerwinski, First Vice President,
Federal Reserve Bank of Kansas City, has been
named to the newly established position of Executive Director for Federal Reserve Priced Services. While he will remain First Vice President
of the Kansas City Bank, Mr. Czerwinski will
devote a substantial portion of his time to the
oversight and coordination of the priced service
activities of the Reserve Banks under the general
direction of the PPC and the Board of Governors. Mr. Czerwinski will remain a member of
the PPC.
• Theodore H. Roberts, President, Federal Reserve Bank of St. Louis, has been appointed a
member of the PPC.
Lyle E. Gramley, Member of the Board of
Governors, Theodore E. Allison, Staff" Director
for Federal Reserve Activities at the Board of
Governors, and William H. Hendricks, First
582
Federal Reserve Bulletin • July 1984
Vice President, Federal Reserve Bank of Cleveland, will continue as members of the PPC.
AMENDMENT
TO REGULATION
L
The Federal Reserve Board amended its Regulation L (Management Official Interlocks) effective
June 11, 1984, to conform it to recent legislation
that deleted all references in the Depository
Institution Management Interlocks Act to "standard metropolitan statistical areas" and substituted the new classifications for metropolitan
statistical areas now in use by the Federal Office
of Management and Budget.
In a joint notice for publication in the Federal
Register, the Office of the Comptroller of the
Currency, the Federal Deposit Insurance Corporation, the Federal Home Loan Bank Board, and
the National Credit Union Administration announced that they are similarly amending their
regulations. The text of the notice is available at
District Federal Reserve Banks.
PROPOSED
MEETING
COUNCIL
OF CONSUMER
ADVISORY
The Federal Reserve Board announced that its
Consumer Advisory Council met on July 18 and
19, 1984, in sessions open to the public.
The Council's function is to advise the Board
on the exercise of the Board's responsibilities
under the Consumer Credit Protection Act and
on other matters on which the Board seeks its
advice.
CHANGE
IN BOARD
STAFF
The Board of Governors has announced the
appointment of George M. Lopez to the official
staff as Assistant Director in the Division of
Support Services with oversight responsibility
for the Procurement, Communications, Duplicating, Publications, Security, and Motor Transport
services.
Mr. Lopez came to the Board in July 1975. He
has a B.S. in Business Administration from the
University of Wyoming.
ACTIONS
The Federal Reserve Board has requested by
September 12, 1984, comment on proposed revisions of its Regulation K (International Banking
Operations) concerning chiefly the international
operations of U.S. banking organizations.
The Federal Reserve Board also published for
public comment a proposed amendment to Regulation J (Collection of Checks and Other Items
and Wire Transfers of Funds) that would require
a depository institution upon which a check is
drawn (payor institution) to provide notification
to the depository institution in which the check is
first deposited (institution of first deposit) that a
large dollar check is being returned. The Board
requested comment by August 31, 1984.
SYSTEM
MEMBERSHIP:
ADMISSION OF STATE
BANKS
The following banks were admitted to membership in the Federal Reserve System during the
period June 10 through July 10, 1984:
Colorado
Englewood . . First Bank of Araphoe/Yosemite
Delaware
Wilmington.. Marine Midland Bank Delaware
Florida
Destin
Florida State Bank
Hialeah
Trust Bank
Miami
Metro Bank of Dade County
Texas
Houston
Ellington Bank of Commerce
583
Legal Developments
AMENDMENTS TO REGULATION
L
The Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the
Federal Deposit Insurance Corporation, the Federal
Home Loan Bank Board, and the National Credit
Union Administration (collectively referred to as the
"agencies") are amending their respective regulations
implementing the Depository Institution Management
Interlocks Act, which generally prohibits certain management official interlocks between unaffiliated depository institutions and depository holding companies
depending upon their asset size and location. The
amendments conform the regulations to a change in
the Depository Institution Management Interlocks Act
which deleted all references to "Standard Metropolitan Statistical Areas" ("SMSAs") and substituted
therefore the new classifications for Metropolitan Statistical Areas adopted by the Office of Management
and Budget.
Effective June 11, 1984, the Board of Governors
amends Regulation L, 12 C.F.R. Part 212 is amended
as follows:
Part 212—Management
Official
Interlocks
1. The authority citation for Part 212 reads as follows:
AUTHORITY: 12 U.S.C. 3201 et seq.
2. Section 212.2 is amended by adding a new paragraph (n) to read as follows:
Section 212.2—Definitions
(n) "Relevant metropolitan statistical area" means a
Primary Metropolitan Statistical Area, a Metropolitan
Statistical Area, or a Consolidated Metropolitan Statistical Area that is not comprised of designated Primary Metropolitan Statistical Areas as defined by the
Office of Management and Budget.
3. Section 212.3 is amended by revising paragraph (b)
to read as follows:
Section 212.3—General Prohibitions
(b) Metropolitan
Statistical
Area. A management offi-
cial of a depository organization may not serve at the
same time as a management official of another depository organization not affiliated with it if:
(1) Both are depository institutions, each has an
office in the same relevant metropolitan statistical
area, and either institution has total assets of $20
million or more;
(2) Offices of depository institution affiliates of both
are located in the same relevant metropolitan statistical area and either of the depository institution
affiliates has total assets of $20 million or more; or
(3) One is a depository institution that has an office
in the same relevant metropolitan statistical area as
a depository institution affiliate of the other and
either the depository institution or the depository
institution affiliate has total assets of $20 million or
more.
4. Section 212.6 is amended by revising paragraph (a)
to read as follows:
Section 212.6—Changes in Circumstances
(a) Non-grandfathered
interlocks.
If a p e r s o n ' s service
as a management official is not grandfathered under
section 212.5 of this part, the person's service must be
terminated if a change in circumstances causes such
service to become prohibited. Such a change may
include, but is not limited to, an increase in asset size
of an organization due to natural growth, a change in
relevant metropolitan statistical area or community
boundaries or the designation of a new relevant metropolitan statistical area, an acquisition, merger, or
consolidation, the establishment of an office, or a
disaffiliation.
*
*
*
*
*
AMENDMENT TO RULES REGARDING
DELEGATION OF AUTHORITY
The Board of Governors is amending 12 C.F.R. Part
265, its Rules Regarding Delegation of Authority, to
delegate to the Director of the Division of Banking
Supervision and Regulation the authority to determine
the need for establishment and the amount of any
allocated transfer risk reserves against certain international assets, pursuant to the International Lending
Supervision Act of 1983 and the Board's Regulation K
584
Federal Reserve Bulletin • July 1984
(12 C.F.R. § 211.43(b)), and to notify banking institutions of such determination.
Effective June 14, the Board of Governors
amends its Rules Regarding Delegation of Authority
(12 C.F.R. Part 265) by adding a new section,
265.2(c)(32) to read as follows:
Part 265—Rules Regarding Delegation of
Authority
Section 265.2—Specific Functions Delegated to
Board Employees and to Federal Reserve
Banks
(32) Under the provisions of Subpart D of the
Board's Regulation K (12 C.F.R. Part 211), to
determine the need for establishment and the
amount of any allocated transfer risk reserve against
certain international assets and to notify banking
institutions of the determination and the amount of
such reserve and whether such reserve may be
reduced.
BANK HOLDING COMPANY, BANK MERGER, AND
BANK SERVICE CORPORATION ORDERS
ISSUED
BY THE BOARD OF GOVERNORS
Orders Issued Under Section 3 of the Bank
Holding Company Act
Bank of Boston Corporation
Boston, Massachusetts
Stay of Board's
Bank Holding
Order Approving
Company
Acquisition
of a
Board's Order by the United States Court of Appeals
for the Second Circuit. It has also petitioned the Board
to stay its Order pending resolution by the Second
Circuit Court of Appeals of the constitutional issues
raised by the Connecticut statute.
On March 26, 1984, the Board approved two other
New England interstate transactions2 despite protests
from Citicorp and other protestants that raised constitutional issues identical to the issue in this case. The
protestants sought judicial review of the Board's Orders in the previous cases before the United States
Court of Appeals for the Second Circuit,3 and on April
24, 1984, that Court stayed the effectiveness of the
Board's Orders pending the Court's decision on the
merits of the cases. In view of the decision of the
Court of Appeals to stay the Board's prior Orders and
the fact that this case raises the same substantive
issues, and considering the factors relevant to a decision on a stay motion, the Board believes that the
interests of administrative and judicial efficiency as
well as considerations of fairness require the Board to
grant the petition of Citicorp and to stay its Order
approving the application of Bank of Boston Corporation to acquire Colonial Bancorp, Inc.
Accordingly, the Board hereby stays the effectiveness of its Order approving the application of Bank of
Boston Corporation to acquire Colonial Bancorp, Inc.,
pending judicial review of this case by the United
States Court of Appeals for the Second Circuit.
By order of the Board of Governors, effective
June 11, 1984.
Voting for this action: Chairman Volcker and Governors
Partee, Rice, and Gramley. Absent and not voting: Governors Martin, Wallich, and Teeters.
[SEAL]
By Order dated May 18, 1984, the Board approved the
application of Bank of Boston Corporation, Boston,
Massachusetts, to acquire Colonial Bancorp, Inc.,
Waterbury, Connecticut, and thereby to acquire Colonial Bank, Waterbury, Connecticut. The Board's approval of this interstate acquisition of a bank was made
possible by the Connecticut statute authorizing, under
certain conditions, the acquisition of Connecticut
banks by bank holding companies located in other
New England states.1
Citicorp, New York, New York, protested the application in a timely manner on the basis that the Connecticut interstate banking statute unconstitutionally
discriminates against non-New England bank holding
companies. Citicorp has sought judicial review of the
Associate
JAMES MCAFEE
Secretary
of the Board
Canadian Commercial Bank
Edmonton, Alberta, Canada
Order Approving Acquisition
Bank Holding
Company
of Shares
of a
Canadian Commercial Bank, Edmonton, Alberta,
Canada, a bank holding company within the meaning
2. Bank of New England Corporation, Boston, Massachusetts, to
merge with CBT Corporation, Hartford, Connecticut, 70 FEDERAL
RESERVE BULLETIN 374 (1984), and Hartford National Corporation,
Hartford, Connecticut, to acquire Arltru Bancorporation, Lawrence,
M a s s a c h u s e t t s , 7 0 FEDERAL RESERVE BULLETIN 354 (1984).
1. 1983 Conn. Acts 411 (Res. Sess.) entitled "An Act Concerning
Interstate Banking," § 2.
3. Northeast Bancorporation, Inc. v. Board of Governors of the
Federal Reserve System, No. 84-4047 (2d Cir. filed March 27, 1984);
Citicorp v. Board of Governors of the Federal Reserve System, Nos.
84-4051 and 84-4053 (2d Cir. filed March 30, 1984).
Legal Developments
of the Bank Holding Company Act of 1956, as amended (12 U.S.C. § 1841 et seq.), has applied for the
Board's approval pursuant to section 3(a)(3) of the Act
(12 U.S.C. § 1842(a)(3)), to increase its ownership of
Westlands Diversified Bancorp, Santa Ana, California
("WDB"), from 41.7 percent to 100 percent and
thereby increase its ownership of Westlands Bank,
Santa Ana, California ("Bank"). 1
Notice of the application, affording interested persons an opportunity to submit comments, has been
given in accordance with section 3(b) of the Act (49
Federal Register 18179). The time for filing comments
has expired, and the Board has considered the application and all comments received in light of the factors
set forth in section 3(c) of the Act.
Applicant, through its subsidiary CCB Bancorp,
indirectly controls 41.7 percent of Bank, the 26th
largest commercial banking organization in California,
with aggregate deposits of $390.8 million, representing
0.23 percent of the total deposits in commercial banks
in the state.2 Bank operates in four markets in California and controls less than 1 percent of total deposits in
commercial banks in each market.3 Neither Applicant
nor any of its principals is affiliated with any other
banking organization in these markets, and it appears
that consummation of the proposal will not result in
significant adverse effects upon competition in any
relevant area.
The financial and managerial resources and future
prospects of Applicant are consistent with the approval of this acquisition, particularly in light of Applicant's recent management changes and its recent
issuance of additional preferred stock. Bank experienced rapid growth over the past three years as a
result of a substantial increase in its real estate lending. As a result of this growth and substantial loan
losses experienced in 1983, Bank's capital is significantly below the minimum levels specified by the
appropriate banking supervisory authorities. WDB's
and Bank's financial and managerial resources will be
strengthened as a result of consummation of this
proposal, particularly in light of Applicant's commitment to raise Bank's capital substantially above the
minimum capital levels specified by the appropriate
banking supervisory authorities.
1. Applicant proposes to acquire WDB by merging it with Westlands Acquisition Corporation, a newly organized, wholly-owned
subsidiary of Applicant. Applicant also has applied to acquire directly
or indirectly 10,000,000 newly issued shares of WDB if the merger
cannot be consummated.
Applicant and CCB Bancorp have also applied to retain the 2.7
percent of WDB's voting shares that were acquired by foreclosure in
satisfaction of a debt previously contracted.
2. All banking data are as of September 30, 1983.
3. These banking markets are as follows: the Los Angeles RMA,
the San Diego RMA, the Sacramento RMA, and the San Francisco/
Oakland RMA.
585
Thus, the Board concludes that considerations relating to banking factors are consistent with approval, as
are considerations relating to the convenience and
needs of the community to be served. Accordingly,
based on the foregoing and other facts of record, the
Board has determined that consummation of the transaction would be consistent with the public interest and
that the application should be approved.
In view of all of the facts of record and the request
by the California Superintendent of Banks that this
application be processed on an expedited basis, the
Board has determined that the conditions specified in
section 11(b) of the Act for consummation of a proposal immediately after Board approval are present in this
case. Accordingly, consummation of this transaction
may take place immediately. The transaction shall not
be consummated later than three months after the
effective date of this Order unless the period for
consummation is extended for good cause by the
Board or the Federal Reserve Bank of San Francisco
under delegated authority.
By order of the Board of Governors, effective
June 11, 1984.
Voting for this action: Chairman Volcker and Governors
Partee, Rice, and Gramley. Absent and not voting: Governors Martin, Wallich, and Teeters.
[SEAL]
Associate
JAMES MCAFEE
Secretary
of the Board
C.Y. Tung Financial Corporation
Hong Kong, B.C.C.
American Asian Bancorp
San Francisco, California
Order Approving
Company
Formation
of a Bank
Holding
C.Y. Tung Financial Corporation, Hong Kong,
B.C.C., and American Asian Bancorp, San Francisco,
California, have applied for the Board's approval
under section 3(a)(1) of the Bank Holding Company
Act ("the Act") (12 U.S.C. § 1842(a)(1)) to become
bank holding companies by acquiring directly or indirectly the voting shares of American Asian Bank, San
Francisco, California ("Bank"). Upon consummation
of the proposed transaction, C.Y. Tung Financial
Corporation would own at least 65 percent of the
voting shares of American Asian Bancorp, which will
own all of the voting shares of Bank.
Notice of the applications, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
586
Federal Reserve Bulletin • July 1984
time for filing comments has expired and the Board
has considered the applications and all comments
received in light of the factors set forth in section 3(c)
of the Act.
C.Y. Tung Financial Corporation is a nonoperating
foreign corporation organized solely for the purpose of
acquiring and holding shares of American Asian Bancorp and is wholly owned by a foreign individual.
American Asian Bancorp is a nonoperating domestic
corporation organized for the purpose of holding the
shares of Bank. The proposed transactions represent
essentially corporate reorganizations by the current
shareholders of Bank.
Upon consummation of the proposed transactions,
Applicants would control one of the smaller commercial banking organizations in California.1 The Federal
Deposit Insurance Corporation and the California
State Banking Department have recently approved the
merger of Toronto Dominion Bank of California, San
Francisco, California, into Bank. Upon consummation
of that merger, Bank will have total assets of approximately $190.3 million and will rank 24th among commercial banking organizations in the San Francisco
banking market, with less than one percent of the total
deposits in commercial banks in the market.2 Inasmuch as Applicants and their principal shareholders
do not control any other banks in California or conduct
any nonbanking business in the United States,3 consummation of the proposed transactions would have
no significant adverse effects on either existing or
potential competition in any relevant market and
would not increase the concentration of resources in
any relevant area.
The financial and managerial resources and future
prospects of C.Y. Tung Financial Corporation and
American Asian Bancorp are considered satisfactory.
In this connection, neither Applicant has any debt nor
will incur any debt as a result of the proposed acquisition. Moreover, C.Y. Tung Financial Corporation has
committed to consent to the jurisdiction of the United
States, to appoint an agent for service of process in the
United States, and to maintain adequate books and
records in the United States available to the Board on
request together with any additional information that
the Board may require concerning the business and
financial condition of C.Y. Tung Financial Corporation.
The financial and managerial resources and future
prospects of Bank appear satisfactory in light of commitments made by C.Y. Tung Financial Corporation
and its principal shareholder to inject additional capital
into Bank as part of the merger between Bank and
Toronto Dominion Bank of California. Based on all of
the facts of record, including the commitments made
by Applicants, the Board has determined that the
considerations relating to banking factors are consistent with approval of these applications. The Board has
determined that considerations relating to the convenience and needs of the communities to be served are
also consistent with approval of these applications.
Based on all the facts of record and commitments
made by Applicants and the principal shareholder of
C.Y. Tung Financial Corporation, the Board has determined that these applications should be, and hereby
are, approved. The acquisitions shall not be consummated before the thirtieth day following the effective
date of this Order, or later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of San Francisco under delegated authority.
By order of the Board of Governors, effective
June 4, 1984.
Voting for this action: Governors Partee, Teeters, Rice,
and Gramley. Absent and not voting: Chairman Volcker, and
Governors Martin and Wallich.
[SEAL]
JAMES MCAFEE
Secretary of the Board
C.Y. Tung & Sons Co., Inc.
Hong Kong, B.C.C.
Order Approving
Company
1. All banking data are as of March 31, 1984.
2. The San Francisco banking market is approximated by the San
Francisco RMA.
3. The sole shareholder of C.Y. Tung Financial Corporation is an
individual who also owns 100 percent of another company that has
applied for Board approval to become a bank holding company and to
acquire approximately 47 percent of the voting shares of a bank
located in New York. These two companies will have two directors in
common. See, C. Y. Tung & Sons Co., Inc., Board Order of even date.
Because these two companies are owned and controlled by a common
individual, the two banks have been deemed part of a chain banking
organization for purposes of the Board's analysis of these applications.
Associate
Formation
of a Bank
Holding
C.Y. Tung & Sons Co., Inc., Hong Kong, B.C.C., has
applied for the Board's approval under section 3(a)(1)
of the Bank Holding Company Act ("the Act")
(12 U.S.C. § 1842(a)(1)) to become a bank holding
company by increasing from approximately 24 percent
to 48 percent its ownership of the voting shares of
Global Bancorporation, New York, New York, a
registered bank holding company by virtue of its
ownership of Global Union Bank, New York, New
York ("Bank").
Legal Developments
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing comments has expired and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the Act.
Applicant was organized solely for the purpose of
acquiring and holding shares of Global Bancorporation
and is wholly owned by a foreign individual. Upon
acquisition of the shares of Global Bancorporation
and, indirectly, Bank, Applicant would control one of
the smaller commercial banking organizations in New
York.1 Bank has total assets of $47.6 million and ranks
95th among commercial banking organizations in the
Metropolitan New York banking market, with less
than one percent of the total deposits in commercial
banks in the market.2 Inasmuch as Applicant and its
principal control no other banks in New York and
conduct no nonbanking business in the United States,3
consummation of the proposed transaction would have
no significant adverse effects on either existing or
potential competition in any relevant market and
would not increase the concentration of resources in
any relevant area.
The financial and managerial resources and future
prospects of Applicant and Bank are considered satisfactory. In this connection Applicant currently has no
debt and will not incur any debt as a result of the
proposed acquisition. Moreover, Applicant has committed to consent to the jurisdiction of the United
States, to appoint an agent for service of process in the
United States, and to maintain adequate books and
records in the United States available to the Board on
request together with any additional information that
the Board may require concerning Applicant's business and financial condition. Based on all of the facts
of record, including the commitments made by Applicant, the Board has determined that the considerations
relating to banking factors are consistent with approv-
1. All banking data are as of December 31, 1983.
2. The Metropolitan New York banking market includes New York
City; Nassau, Putnam, Rockland, Westchester, and western Suffolk
Counties in New York State; the northeastern two-thirds of Bergen
County and eastern Hudson County in New Jersey; and southwestern
Fairfield County in Connecticut.
3. The sole shareholder of Applicant is an individual who also owns
100 percent of another company that has applied for Board approval to
become a bank holding company and to acquire 67 percent of the
voting shares of a bank operating in California. These two companies
will have two directors in common. See, C. Y. Tung Financial Corporation, Board Order of even date. Because these two companies are
owned and controlled by a common individual, the two banks have
been deemed part of a chain banking organization for purposes of the
Board's analysis of these applications.
587
al of this application. The Board has determined that
considerations relating to the convenience and needs
of the communities to be served are also consistent
with approval of the application.
Based on all the facts of record and commitments
made by Applicant and its principal shareholder, the
Board has determined that the application should be,
and hereby is, approved. The acquisition shall not be
consummated before the thirtieth day following the
effective date of this Order, or later than three months
after the effective date of this Order, unless such
period is extended for good cause by the Board or by
the Federal Reserve Bank of New York under delegated authority.
By order of the Board of Governors, effective
June 4, 1984.
Voting for this action: Governors Partee, Teeters, Rice,
and Gramley. Absent and not voting: Chairman Volcker, and
Governors Martin and Wallich.
[SEAL]
Associate
JAMES MCAFEE
Secretary
of the Board
United Banks of Colorado, Inc.
Denver, Colorado
Order Approving
Acquisition
of a Bankers'
Bank
United Banks of Colorado, Inc., Denver, Colorado
("Applicant"), has applied for the Board's approval
under section 3(a)(3) of the Bank Holding Company
Act ("Act") (12 U.S.C. § 1842(a)(3)) to acquire indirectly 85 percent of the voting shares of Westnet Bank,
N.A., Denver, Colorado ("Bank"), a proposed
de novo bankers' bank.1 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 is the largest banking organization in
Colorado, controlling total deposits of $2.74 billion,
1. Seventeen of Applicant's present and proposed banking subsidiaries each propose to acquire 5 percent of Bank's voting shares. This
would result in indirect control by Applicant of 85 percent of Bank's
voting shares. The following banks also would each acquire 5 percent
of Bank's voting shares: Wells Fargo Bank, N.A., San Francisco,
California, Bank of Hawaii, Honolulu, Hawaii, and Valley National
Bank of Arizona, Phoenix, Arizona (collectively with Applicant, the
"Organizers").
588
Federal Reserve Bulletin • July 1984
which represent 16.2 percent of the total deposits in
commercial banks in Colorado.2 Section 404 of the
Garn-St Germain Depository Institutions Act of 1982
authorized the Comptroller of the Currency to charter
national "bankers' banks," which are limited-charter
institutions owned exclusively by depository institutions and which provide services solely to depository
institutions and their directors, officers, and employees.3 A national bank is permitted to own stock (not in
excess of 5 percent of the voting shares) in a bankers'
bank provided that the bankers' bank and all of its
subsidiaries provide services only to depository institutions.
Bank will not do business with the general public;
instead, it will operate primarily as a correspondent
bank for and on behalf of depository institutions
predominantly located in the western United States.
Its services may encompass any activity permitted by
the Comptroller for national bankers' banks, but initially Bank proposes to provide, in addition to traditional correspondent banking services: a funds settlement service; a clearing center for brokerage orders
placed with member depository institutions; shared
data processing and banking operations centers; and a
loan participation service, all on behalf of member
depository institutions.
Applicant proposes to conduct its bankers' bank
operations from an office located in Denver, Colorado.
Applicant also proposes to establish an office of Bank
in San Francisco, California, which Applicant has
committed will perform certain limited administrative
functions and will not be a bank.
In view of Applicant's commitment regarding the
conduct of Bank's activities at its San Francisco,
California, administrative office, Applicant's proposal
does not involve the acquisition of an additional
"bank" located in California.
The Board notes that nonvoting nonconvertible preferred stock represents 99 percent of Organizers' total
equity investment in Bank. The proposal, therefore,
also has been examined for its consistency with the
Board's Policy Statement on Nonvoting Equity Investments (the "Policy Statement") as well as prior
Board decisions involving nonvoting equity investments.4 Applicant has committed that no bank or bank
affiliate outside of the state of Colorado would own 25
percent or more of the equity of Bank. Moreover, no
single bank or bank affiliate would control Bank's
board of directors. Based upon the foregoing, the
Board concludes that the proposed investments are
consistent with the Policy Statement and that no entity
outside of Colorado would control Bank or exert a
controlling influence over Bank for purposes of section 2(a)(2) of the Act.
In view of the nature of Bank's proposed activities,
Bank would compete only with other banks that offer
correspondent banking services. Bank, as a de novo
provider of these services, may be expected to exert a
procompetitive influence and to foster increased competition in the market for correspondent banking and
other bankers' bank services. Although certain of
Bank's services are now provided by Bank's member
depository institutions, the advantages of economies
of scale and joint operations would be available
through Bank and would allow members an opportunity to remain competitive with other financial institutions. Accordingly, the Board concludes that consummation of the proposal would not have any substantial
adverse effects on competition.
The financial and managerial resources of Applicant, its subsidiaries, and Bank are regarded as satisfactory, and their prospects appear favorable. Consummation of the proposed transaction would result in
decreased costs in the provision of new or expanded
correspondent banking services among Bank's member depository institutions. Accordingly, factors relating to the convenience and needs of the community to
be served are consistent with approval of this proposal.
Based on the foregoing and other facts of record, the
Board has determined that this application should be
and hereby is approved. This transaction shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
the Federal Reserve Bank of Kansas City, acting
pursuant to delegated authority.
By order of the Board of Governors, effective
June 12, 1984.
2. Deposit data are as of June 30, 1983.
3. Pub. L. No. 97-320, 96 Stat. 1469 (1982), as amended by, S.J.
Res. 271, Pub. L. No. 97-457, 96 Stat. 2508 (1983) ("Garn-St Germain
Act"). Preliminary charter approval for Bank was granted by the
Comptroller on February 15, 1984.
[SEAL]
Voting for this action: Chairman Volcker and Governors
Partee, Rice, and Gramley. Absent and not voting: Governors Martin, Wallich, and Teeters.
Associate
JAMES MCAFEE
Secretary
of the Board
4. 6 8 FEDERAL RESERVE BULLETIN 4 1 3 ( 1 9 8 2 ) ; 12 C . F . R . § 2 2 5 . 1 4 3
(July 1982). See United Midwest Bancshares, Inc., 68 FEDERAL
RESERVE BULLETIN 676 (1975); and Security Bancorp, Inc., 66
RESERVE BULLETIN 774 ( 1 9 8 2 ) ; Valley
FEDERAL RESERVE BULLETIN 9 7 7 ( 1 9 8 0 ) .
View
Bancshares,
6 1 FEDERAL
Legal Developments
Orders Issued Under Section 4 of the Bank
Holding Company Act
CB&T Bancshares, Inc.
Columbus, Georgia
Bank South Corporation
Citizens and Southern Georgia Corporation
First Atlanta Corporation
Atlanta, Georgia
First Railroad & Banking Company of Georgia
Augusta, Georgia
Heritage Bancshares, Inc. and Trust Company
of Georgia
Snellville, Georgia
Order Approving
Acquisition
Interchange
Network,
Inc.
of Shares
in
Georgia
CB&T Bancshares, Inc., Columbus, Georgia; Bank
South Corporation, Citizens and Southern Georgia
Corporation ("Citizens and Southern"), Trust Company of Georgia, and First Atlanta Corporation ("First
Atlanta"), all of Atlanta, Georgia; First Railroad &
Banking Company of Georgia ("First Railroad"), Augusta, Georgia; and Heritage Bancshares Inc. ("Heritage"), Snellville, Georgia, all bank holding companies
within the meaning of the Bank Holding Company Act
("BHC Act") (12 U.S.C. § 1841 et seq.), have applied
for the Board's approval under section 4(c)(8) of the
BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.23
of the Board's Regulation Y (12 C.F.R. § 225.23), each
to acquire 8.33 percent of the voting shares of Georgia
Interchange Network, Inc. ("GIN"), Atlanta, Georgia, a joint venture to engage de novo in data processing and related activities.1 GIN will operate an electronic funds transfer ("EFT") system for
interchanging financial transactions tnroughout Georgia. The proposed interchange system ("the Switch")
will operate as a neutral clearing house for customer
1. With one exception, Applicants propose to acquire the shares
directly. Heritage will acquire its shares indirectly through its subsidiary, Heritage Bank, Snellville, Georgia, a state-chartered nonmember
bank. The remaining 8.33 percent owners of GIN are: Georgia Telco
Credit Union, Atlanta, Georgia; DFS Services, Inc., a wholly owned
subsidiary of Decatur Federal Savings and Loan Association, Decatur, Georgia; a wholly owned subsidiary of Fulton Federal Savings
and Loan Association, Atlanta, Georgia; and a wholly owned subsidiary of Georgia Federal Bank, F.S.B., Atlanta, Georgia.
Concurrent with these applications, the First National Bank of
Cobb County, Marietta, Georgia, has applied pursuant to section 5(b)
of the Bank Service Corporation Act to acquire shares of a proposed
bank service corporation which also will acquire 8.33 percent of the
voting shares in the GIN Network. That application is the subject of a
separate Order issued today, which incorporates by reference the
terms of the instant Order.
589
EFT banking transactions, such as cash withdrawals,
funds transfers, balance inquiries, and point-of-sale
("POS") debit and credit transactions. Access to the
Switch will be available to all federally insured depository institutions located in Georgia. The Switch will
enable the customers of each participating depository
institution to access their account by using their institution's proprietary access card at point-of-sale terminals and automated teller machines ("ATMs") located
in shopping centers, grocery stores, office buildings
and convenience stores throughout Georgia. These
terminals will be owned, installed and operated not by
the Switch but by the participating financial institutions and by retailers and third parties that have
contracted with participating institutions to provide
terminals to those institutions. Thus, the sole function
of the Switch will be to operate as a clearing facility for
the banking transactions initiated at the ATMs and
POS terminals that are placed within the Switch system. Customer transactions at these terminals will be
passed through the terminal owner's computer to the
Switch, which will then route the messages to the
cardholder's institution2 for processing.
The Switch will operate behind the participating
institutions; that is, no terminals will be connected
directly to the Switch. Instead, all terminals will be
connected to computers of the participating institutions or their designated processors (or to the computers of retailers and corporations that operate terminals
sponsored by participating institutions), which in turn
will communicate with the Switch. Thus, the general
and technical operational objective of the Switch is to
provide for the central transmission of "non-on-us"
financial transaction messages (i.e., transactions initiated by a financial institution cardholder at a terminal
owned or sponsored by another financial institution)
between participating institutions.3 The participating
institutions will respond directly to "on-us" transactions (i.e., transactions by their cardholder at their
terminal) and will route only "non-on-us" transactions
to the Switch.
These data processing and related activities have
been determined by the Board to be closely related to
banking and are permissible under section 225.25(b)(7)
of Regulation Y (12 C.F.R. § 225.25(b)(7)(i) and (ii)).
Notice of these applications, affording opportunity for
2. The term "cardholder institution" refers to the institution whose
proprietary access card is used by its customers ("the cardholder") at
one of the terminals within the Switch system.
3. In addition to transmitting financial transaction messages between participating institutions, the Switch will perform the following
incidental functions: monitoring and maintaining technical Switch
performance standards; assisting in the training and education of
participants; producing and distributing timely reports to management; and performing a daily settlement on all transactions passed
through the Switch.
590
Federal Reserve Bulletin • July 1984
interested persons to submit comments and views, has
been duly published. 49 Federal Register 13426 (April
4, 1984). The time for filing comments and views has
expired and the Board has considered the applications
and all comments received in light of the factors set
forth in section 4(c)(8) of the BHC Act, 12 U.S.C.
§ 1843(c)(8).
Each of the co-venturers currently engages either
directly or indirectly, through a subsidiary or affiliate,
in data processing and data transmission activities,
including the operation of proprietary ATM networks.
The proprietary ATM networks operated directly or
indirectly by the co-venturers provide services for the
co-venturers' affiliated banks. Two of the co-venturers, Citizens and Southern and First Railroad, currently operate indirectly proprietary ATM systems for
non-affiliated as well as affiliated institutions. Another
co-venturer, First Atlanta, provides ATM services at
four Atlanta, Georgia offices of a large corporation. An
additional co-venturer, Heritage Bank, is affiliated
with a data processing subsidiary through their common bank holding company. The subsidiary provides
complete data processing services (including the processing of ATM transactions) for 27 banks. Unlike
GIN, the function of these proprietary networks, and
the proprietary networks of the other co-venturers, is
not limited to interchanging transactions: they also
issue cards and provide directly support terminals.
Because the Switch will only interchange "non-on-us"
transactions, the individual co-venturers (either directly or through their subsidiaries or affiliates) will continue to operate their own proprietary ATM networks
while participating in the Switch's shared interchange
system.
The GIN Switch will not own or operate any ATM
or POS terminals. Because of the limited interchange
functions of the Switch, each terminal owner and
sponsor and each cardholder institution will price its
services to merchants, cardholders, or third parties as
it deems appropriate.
Any federally insured depository institution located
in Georgia may use the Switch's interchange service
by joining the Switch.4 Participants will pay a one-time
initiation fee, an annual membership fee, and certain
transaction fees for services performed by the Switch.
As indicated above, all existing proprietary ATM
systems of participating financial institutions will continue to operate; GIN will merely interface among
those systems.
4. All federally insured Georgia depository institutions (or their
affiliates) also were afforded an opportunity to share ownership of the
Switch. Hence, both equity and nonequity participation in the Switch
was made available.
The appropriate line of commerce for analyzing the
competitive effects of consummation of this proposal
is the provision for unaffiliated financial institutions of
data processing services. Inasmuch as the proposed
venture is to commence de novo, no existing competition among the co-venturers in operating an interchange system would be eliminated.
The Board also has considered the effects of consummation of this proposal on probable future competition, particularly as these applications utilize a joint
venture to engage in the relevant activities, and the coventurers are some of the largest financial institutions
in Georgia. The GIN group comprises 12 financial
organizations. They include the six largest, and the
ninth and sixteenth largest banking organizations in
Georgia, the state's three largest thrift institutions, and
one of the state's largest credit unions. It does not
appear likely, however, that the individual venturers
would expand an existing ATM/POS network on a
statewide basis, or establish individually a statewide
EFT Switch, in view of the substantial capital costs
and the necessity for a high volume of transactions for
cost-effective operation that such a venture would
entail. Nor would the limited cardholder base and the
limited accessibility of an individual institution's EFT
system likely be sufficiently attractive to potential
outside participants (depository institutions, retailers)
so as to place their own ATM/POS terminals within an
individual system.
Moreover, the market for such data processing
activities is not regarded as concentrated. The record
reflects that there are presently numerous statewide,
regional, and national shared ATM/POS systems in
Georgia, all in various stages of development. Several
of the co-venturers currently share ownership or participate in one or more of these shared systems. The
existence of these current (and other potential) entrants mitigates concerns that the GIN interchange
system may represent so large a proportion of possible
ATM/POS facilities in local markets that no competing
networks could exist. Additionally, the membership
contract that is proposed for GIN-participating institutions provides a term of only three years and does not
restrict the ability to participate in other such shared
systems.5 In this light, the loss of these potential
5. Each of the member financial institutions is free to join other
shared networks or switches; thus, each has the flexibility to compete
by offering its customers access to as many ATM/POS terminals as it
chooses. In addition, each member has sole discretion over the
decision where to locate its ATM/POS terminals, thereby preserving
its ability to develop a system most convenient for its customers.
Finally, while there are some minimum standards on the types and
numbers of transactions that can be offered within the GIN interchange, these seem consistent with the inherent technological constraints of linking together ATM or POS terminals.
Legal Developments
entrants into the market for data processing services
does not raise any serious concern. Accordingly, the
Board concludes that consummation of the proposed
joint venture would not have any significantly adverse
effects upon probable future competition. After careful
review of the application and other facts of record, the
Board also concludes that no evidence exists upon
which to conclude that consummation of the proposal
would result in unfair competition, conflicts of interest
or unsound banking practices.6
The Board has also considered the effect of consummation of this proposal in light of state and federal
laws governing the establishment of branches and the
use of ATM/POS terminals in a network. As described
above, the GIN Switch would only provide data
processing services for the interchange and would
neither own nor provide ATM/POS terminals. Moreover, membership in the interchange is not restricted
and Applicants have stated that the institutional participants in the interchange would comply with all applicable federal or state branching laws and other statutes
regarding the establishment and use of ATM/POS
terminals in a network.7 Applicants further have committed to offer through the interchange only those
transactional services legally available to ATM/POS
customers of participating financial institutions under
applicable federal and Georgia laws.
It is the Board's view that approval of these applications can reasonably be expected to produce benefits
to the public. Consummation of this proposal would
allow individuals in Georgia access to a larger number
of ATM/POS terminals. In addition, the GIN Switch
would introduce to Georgia a new provider of data
processing services and an alternative ATM/POS net-
6. Applicants have committed that the transaction and other fees
charged by the Switch will be nondiscriminatory and will relate solely
to the interchange services that it provides. As noted above, participation in the Switch is open to all federally insured Georgia depository
institutions.
7. In that regard, the proposed data processing and transmission
activities are permissible under the corporate laws of the state of
Georgia. Section 7-l-603(b)(4) of the Official Code of Georgia, Ga.
Code Ann. § 7-l-603(b)(4) (1982), permits banks to operate ATMs or
POS terminals individually or jointly on a cost-sharing basis with two
or more other financial institutions. Section 7-1-603, in turn, is made
applicable to national banks and all other persons, corporations, or
associations engaged in the business of banking by Ga. Code Ann. § 71-600(1). Under Section 7-1-603, such ATM/POS "facilities" are not
deemed to be additional offices or facilities of a bank for purposes of
Georgia branch banking laws (which generally prohibit branching
except on a county-wide basis), so long as they are maintained within
a county in which the sponsoring financial institution is otherwise
authorized to operate. In order to clarify under Georgia law whether a
Georgia financial institution may be linked with another financial
institution's ATM/POS terminal in a county where it could not
otherwise own or lease an ATM, the Federal Reserve Bank of Atlanta
requested the opinion of the Georgia Department of Banking and
Finance in this matter. The written response of the Deputy Commissioner of that Department makes apparent that the proposed activities
of the GIN group comply with Georgia branching law.
591
work interchange. Further, the economies of scale that
would result from operation of the combined network
would accrue to all participating institutions. Finally,
the joint venture would enable Applicants to share the
cost of expanding and improving EFT services and
would ensure greater availability of funds for product
research and development.
There is no evidence in the record in this case
indicating that consummation of the present proposal
would result in undue concentration of resources,
unfair competition, conflicts of interests, unsound
banking practices or other adverse effects. Based upon
the foregoing and other facts of record, the Board
concludes that the balance of public interest factors it
must consider under section 4(c)(8) favors approval of
these applications. In addition, the financial and managerial resources and future prospects of Applicants are
considered consistent with approval.
Accordingly, the Board concludes that approval of
these applications is in the public interest and has
determined that the applications should be approved.
This determination is subject to the conditions set
forth in Regulation Y, including sections 225.4(d) and
225.23(b)(3), and to the Board's authority to require
such modification or termination of the activities of a
bank holding company or 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.
Consummation of this transaction shall not be made
later than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of
Atlanta pursuant to delegated authority.
By order of the Board of Governors, effective
June 25, 1984.
Voting for this action: Vice Chairman Martin and Governors Partee and Rice. Present and not voting: Governors
Teeters and Gramley. Absent and not voting: Chairman
Volcker and Governor Wallich.
JAMES MCAFEE
[SEAL]
Associate Secretary of the Board
Citicorp
New York, New York
Order Approving Application to Execute and
Clear Certain Options Contracts
Citicorp, New York, New York, a bank holding company within the meaning of the Bank Holding Company Act, 12 U.S.C. § 1841 et seq. ("BHC Act"), has
applied pursuant to section 4(c)(8) of the BHC Act and
592
Federal Reserve Bulletin • July 1984
section 225.21(a) of the Board's Regulation Y, 49
Federal Register
794 (1984) (to be codified at 12
C.F.R. § 225.21(a)), to engage de novo through its
wholly owned subsidiary, Citicorp Futures Corporation ("CFC"), in executing and clearing options on
bullion, foreign exchange, U.S. government securities
and money market instruments, and options on futures
in these commodities and instruments. Citicorp also
has applied for the Board's approval to provide advisory services in connection with some of the proposed
options activities.
Notice of the application, affording interested persons an opportunity to submit comments on the relation of the proposed activity to banking and on the
balance of the public interest factors regarding the
application, has been duly published, 48 Federal Register 51372 (1983). The time for filing comments has
expired and the Board has considered the application
and all comments received in light of the public
interest factors set forth in section 4(c)(8) of the BHC
Act.
Applicant, with consolidated assets of $142 billion1
is the largest banking organization in the United
States. Citicorp controls four subsidiary banks—two
in New York, one in South Dakota and one in Delaware—with, aggregate deposits of $78.9 billion.2
Applicant, directly and through certain of its subsidiaries, engages in a broad range of permissible nonbanking activities throughout the United States. The capitalization of CFC is adequate to permit it to engage in
the proposed nonbanking activities.
Applicant proposes to engage through CFC in acting
as a futures commission merchant ("FCM") registered with the Commodity Futures Trading Commission ("CFTC") in order to execute and clear options
on futures in bullion, foreign exchange, U.S. government securities and money market instruments on
established commodity exchanges.3 These FCM activities are permissible for bank holding companies under
section 225.25(b)(18) of the Board's Regulation Y,
subject to the conditions set forth therein.
Applicant also proposes to engage through CFC in
acting as a broker-dealer registered with the Securities
and Exchange Commission ("SEC") in order to execute and clear options on foreign exchange, U.S.
government securities and money market instruments
on authorized stock exchanges. The Board has previously approved by order the activity of executing and
clearing these SEC-regulated options.4 Applicant's
proposal to execute and clear such options is substantially similar to proposals previously approved by the
Board, and Applicant's prior experience in the cash
and forward markets for these financial physicals
indicates that CFC would have the expertise to provide the proposed options services. Accordingly, the
Board concludes that the execution and clearance of
these SEC-regulated options, in the manner proposed,
is closely related to banking.
In addition, Applicant proposes to execute and clear
CFTC-regulated options on bullion and foreign exchange on authorized commodity exchanges, activities
which have not been authorized previously. In order
to approve an application to engage in new activities
pursuant to section 4(c)(8) of the BHC Act, the Board
is first required to determine that the proposed activity
is closely related to banking or managing or controlling
banks.
The Board has previously determined that the brokering of futures and options on futures in bullion and
foreign exchange is a permissible nonbanking activity.5 In addition, the Board has concluded that options
on physicals serve essentially the same function as
futures and options on futures, and that the brokering
of options on certain physicals, i.e., U.S. government
securities, money market instruments and options on
foreign currency regulated by the SEC, is closely
related to banking.6 The proposed CFTC- and SECregulated options on physicals are functionally and
operationally comparable devices for hedging investment portfolio risk. Therefore, the Board has determined that Applicant's proposal to execute and clear
options on bullion and foreign currency is substantially
similar to proposals to engage in options activities
previously approved by the Board.
Moreover, the record indicates that Applicant has
been active in the cash and forward markets for bullion
and foreign currency and has the expertise to provide
the proposed services to customers. Accordingly, the
Board concludes that, in the manner proposed, and
1. As of March 31, 1984.
2. As of June 30, 1983. The Board recently approved Applicant's
proposal to acquire a subsidiary bank in Maryland. Citicorp, 70
FEDERAL RESERVE BULLETIN 591 (Order dated April 30, 1984).
3. Under an accord between the SEC and the CFTC adopted by
Congress (Pub. L. No. 97-444, 96 Stat. 2294, 7 U.S.C. § 2(a) (1982)
and Pub. L. No. 97-303, 96 Stat. 1409, 15 U.S.C. § 77b (1982)), the
SEC has exclusive jurisdiction over options on U.S. government
securities and money market instruments. The CFTC has overlapping
jurisdiction with the SEC over options on foreign currency and has
exclusive jurisdiction over options on bullion and on futures.
4. Fidelcor,
Inc.,
70 FEDERAL RESERVE BULLETIN 368 (1984)
(SEC-regulated options on foreign exchange); Security Pacific Corporation,
70 FEDERAL RESERVE BULLETIN 53 (1984) (SEC-regulated
options on U.S. government securities and money market instruments).
5. Section 225.25(b)(18) of Regulation Y.
6. See note 4, supra.
Legal Developments
subject to the conditions set forth in section
225.25(b)(18) of Regulation Y for futures and options
on futures, Applicant's proposal to execute and clear
options on bullion and foreign exchange is closely
related to banking.
With respect to the above-referenced CFTC-regulated options, Applicant also proposes to provide investment advisory services consisting of general research
and advice on market conditions and trading strategies, client account information and reconciliation of
trades, and communication linkage between clients
and commodity exchange floors in connection with
proposed FCM activities. These services would be
offered to customers as an integrated package of
services on a nonfee basis. The Board has previously
determined that the provision of investment advice on
this basis is incidental to FCM activities.7 Although
the Board has expressed some doubt with regard to the
continuing applicability of this precedent, the Board
also has determined that the provision of investment
advice in connection with FCM activities is closely
related to banking.8 Accordingly, the Board has determined that FCM investment advisory services, conducted in the manner proposed, may be approved.
In order to approve this application, the Board is
also required to determine that the performance of the
proposed activities by Applicant "can reasonably be
expected to produce benefits to the public . . . that
outweigh possible adverse effects . . . . " (12 U.S.C.
§ 1843(c)(8)). Consummation of Applicant's proposal
would provide added convenience to those clients of
Applicant and its subsidiaries that trade in the cash,
forward and futures markets for these instruments.
The Board expects that the de novo entry of Applicant
into the market for these services would increase the
level of competition among providers of these services
already in operation. Accordingly, the Board concludes that the performance of the proposed activities
by Applicant can reasonably be expected to produce
benefits to the public.
The Board also has considered the potential for
adverse effects that may be associated with this proposal. In particular, the Board has taken into account
and has relied on the regulatory framework established
pursuant to law by the SEC and the CFTC for the
trading of options, as well as the conditions set forth in
section 225.25(b)(18) of Regulation Y with respect to
executing and clearing futures and options on futures.
7. Security
Pacific,
7 0 FEDERAL RESERVE BULLETIN 5 3 , 55 ( 1 9 8 4 ) ;
Citicorp,
6 8 FEDERAL RESERVE BULLETIN 7 7 6 , 7 7 8 (1982).
8. Manufacturers
Hanover
BULLETIN 3 6 9 ( 1 9 8 4 ) .
Corporation,
70 FEDERAL RESERVE
593
Based upon a consideration of all the relevant facts,
the Board concludes that the balance of the public
interest factors it is required to consider under section
4(c)(8) is favorable. Accordingly, the application is
hereby approved. This determination is subject to all
of the conditions set forth in Regulation Y, including
sections 225.4(d) and 225.23(b), and to the Board's
authority to require such modification or termination
of the activities of a bank holding company or any of
its subsidiaries as the Board finds necessary to assure
compliance with the provisions and purposes of the
Act and the Board's regulations and orders issued
thereunder, or to prevent evasion thereof.
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 New York pursuant to
delegated authority.
By order of the Board of Governors, effective
June 5, 1984.
Voting for this action: Governors Partee, Teeters, Rice,
and Gramley. Absent and not voting: Chairman Volcker and
Governors Martin and Wallich.
[SEAL]
Associate
JAMES MCAFEE
Secretary
of the Board
Old Stone Corporation
Providence, Rhode Island
Statement By Board of Governors
of the
Federal Reserve System Regarding
the
Application
of Old Stone Corporation
to Acquire First
Federal
Savings and Loan Association
of Catawba
County
By Order dated June 5, 1984, the Board denied the
application of Old Stone Corporation, Providence,
Rhode Island, pursuant to section 4(c)(8) of the Bank
Holding Company Act, (12 U.S.C. § 1843(c)(8))
("BHC Act"), to acquire First Federal Savings and
Loan Association of Catawba County, Conover,
North Carolina.1 In this Statement, the Board sets
forth its reasons for denying the application.
Applicant is a bank holding company by virtue of its
control of Old Stone Bank, Providence, Rhode Island,
1. In decisions involving applications previously considered under
section 4(c)(8) of the BHC Act, the Board determined that the
operation of a savings and loan association is closely related to
banking. E.g., D.H. Baldwin Company,
LETIN 2 8 0 (1977).
63 FEDERAL RESERVE BUL-
594
Federal Reserve Bulletin • July 1984
which operates 27 banking offices throughout Rhode
Island and controls $1.4 billion in deposits.2 Applicant
also operates industrial banking, consumer finance,
and mortgage banking subsidiaries, and one savings
and loan association that is located in North Carolina.
The Board approved Applicant's acquisition of that
thrift subsidiary, Perpetual Savings & Loan Association, High Point, North Carolina ("Perpetual"), on
September 7, 1983.3 Perpetual operates seven offices
in western North Carolina and controls $180.8 million
in deposits. At the time of its acquisition, Perpetual
was a financially troubled, state-chartered and stateinsured thrift institution. In order to ensure that Perpetual would not be considered a bank under the BHC
Act, Applicant committed that Perpetual would secure
FSLIC insurance.4
Catawba is a small ($50 million in deposits), federally chartered and FSLIC-insured association which
operates three offices in western North Carolina.
Applicant plans to acquire Catawba and immediately
have Perpetual merge with Catawba. Because Catawba is not a failing institution, the Board could not
approve this application under the emergency thrift
acquisition provisions of the Garn-St Germain Act.
Instead, the Board must consider this proposal in light
of the Board's general authority to approve bank
holding company acquisitions of nonbanking companies under section 4(c)(8) of the BHC Act.
In construing its general authority regarding thrift
acquisitions, the Board has reaffirmed its determination made in D.H. Baldwin Company that in most
instances the generalized adverse effects of the affiliation between banks and thrift institutions outweigh
any public benefits that might be present in a particular
transaction.5 Moreover, it is implicit in the Garn-St
Germain Act, which permits only the acquisition of
failing thrift institutions by bank holding companies,
that there are some adverse effects associated with the
acquisition of healthy thrifts.6 As noted, Catawba is
not a failing institution, and the record contains no
evidence of any other compelling public benefits that
would outweigh the generalized adverse effects of the
affiliation of a bank and a thrift institution.
Because the acquisition of Catawba is intended to
strengthen Perpetual, Applicant claims that the proposed acquisition is consistent with the policy underlying the emergency thrift acquisition provisions of the
Garn-St Germain Act. Applicant states that acquisition of Catawba would provide Perpetual with FSLIC
deposit insurance necessary to Perpetual's continued
viability. FSLIC insurance, however, is available to
Perpetual even absent this acquisition by direct application to the FSLIC. Applicant further states that the
acquisition would provide Perpetual with Catawba's
management expertise, expertise that Applicant maintains it cannot itself provide. When Applicant applied
to acquire Perpetual, however, it asserted that it had
the financial and managerial resources necessary to
restore Perpetual to competitive vitality. This assertion was an essential part of the basis for the Board's
approval of the Perpetual acquisition. In this context,
the Board does not favor a subsequent application to
acquire a healthy thrift merely to facilitate the operation of Perpetual or to support it with the managerial
resources its parent claimed it could independently
provide; this is particularly true in a situation in which
the Board must find positive public benefits to overcome the adverse effects the Board has found continue
to apply in the case of bank holding company acquisitions of thrifts.
In addition, Applicant presents a technical argument
in support of this application. Applicant maintains
that, had Perpetual been acquired under the emergency provisions of the Garn-St Germain Act, this acquisition would be permissible under the provision in
section 123 of that Act that permits an acquired thrift
to branch, subject to the restrictions on branching
applicable to national banks located in the state.
Applicant argues that since national banks in North
Carolina may branch by merger, and not merely by
establishing de novo branches, the proposed acquisition should be viewed as an expansion of Perpetual
permissible under the Garn-St Germain Act.7
7. Section 123(a)(5)(A) of the Garn-St Germain Act provides:
2. All banking data are as of December 31, 1983.
3. 6 9 FEDERAL RESERVE B U L L E T I N 8 1 2 ( 1 9 8 3 ) .
4. As a result of the Garn-St Germain Act, the definition of the
term bank contained in section 2(c) of the BHC Act excludes FSLICinsured thrifts.
5. Citicorp (Fidelity Federal), 68 FEDERAL RESERVE BULLETIN 656
(1982); Interstate Financial Corp. (Scioto) 68 FEDERAL RESERVE
BULLETIN 316 (1982). See also, Citicorp (First Federal), 70 FEDERAL
RESERVE B U L L E T I N 149, 1 5 2 - 5 3 ( 1 9 8 4 ) ( a n a l y s i s o f D.H.
Baldwin
precedent in context of acquisition under Garn-St Germain Act).
6. These provisions of the Garn-St Germain Act expire on October
15, 1985, and would thereafter have no impact on the Board's general
authority under section 4(c)(8) to authorize thrift acquisitions where
the net public benefits of a particular proposal are positive.
Where a merger, consolidation, transfer, or acquisition under this subsection
involves an insured institution eligible for assistance and a bank or bank holding
company, an insured institution may retain and operate any existing branch or
branches or any other existing facilities but otherwise shall be subject to the
conditions upon which a national bank may establish and operate branches in the
State in which such insured institution is located.
The language and structure of this provision, however, demonstrate
that it is a limiting provision rather than a permissive one, which does
not by its terms authorize the acquisition of a healthy thrift, and
speaks only to branching and not to expansion by merger. This
proposal involves a merger of S&Ls — thereby eliminating a thrift
institution from the marketplace — and not merely the establishment
or acquisition of branches.
Legal Developments
Perpetual, however, was not acquired by Applicant
under the Garn-St Germain Act, and therefore the
branching provision of that Act is not applicable to this
acquisition. In addition, Applicant offers no compelling public benefits resulting from this acquisition that
would cause the Board to apply the Garn-St Germain
Act by analogy. The Board also noted that there was a
reasonable argument that it is unlikely that Congress
intended under this provision to permit bank holding
companies to expand their presence in the thrift industry through merger with healthy thrift institutions.8
Finally as noted above, the Board believes that the
benefits that might accrue to Applicant through this
proposed affiliation—acquisition of FSLIC deposit insurance and Catawba's management expertise—are
available to Applicant through other means. Consequently, the Board finds that the public benefits associated with this proposal do not outweigh the generalized adverse effects that the Board determined in D.H.
Baldwin were associated with the affiliation of banks
and thrift institutions. Accordingly, on the basis of all
the facts of record, the application is hereby denied.
Board of Governors of the Federal Reserve System,
June 5, 1984.
Voting for this action: Governors Partee, Teeters, Rice,
and Gramley. Absent and not voting: Chairman Volcker and
Governors Martin and Wallich.
[SEAL]
Associate
JAMES MCAFEE
Secretary of the Board
Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
Mercantile Texas Corporation
Dallas, Texas
Order Approving
Merger of Bank
Holding
Companies
and Acquisition
of a Company
Engaged
in the Underwriting
of Credit-Related
Insurance
595
Holding Company Act ("Act"), has applied for the
Board's approval under section 3 of the Act (12 U.S.C.
§ 1842) to merge with Southwest Bancshares, Inc.,
Houston, Texas ("Southwest"). 1 As a result of the
proposed transaction, Applicant would acquire indirectly Southwest's 37 subsidiary banks. The resulting
organization would operate under the charter of Mercantile Texas Corporation and would be known as
Mercantile Southwest Corporation.
Applicant has also applied for the Board's approval
under section 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)) and section 225.23(a)(2) of the Board's
Regulation Y (12 C.F.R. § 225.23(a)(2)), to acquire
Southwest Bancshares Life Insurance Company,
Houston, Texas ("Southwest Bancshares Life"), a
company engaged in the underwriting of credit life and
credit accident and health insurance directly related to
extensions of credit by subsidiaries of Southwest. This
activity has been determined by the Board to be
closely related to banking and permissible for bank
holding companies (12 C.F.R. § 225.25(b)(9)) and this
determination has not been affected by the recent
amendments to section 4(c)(8) of the Act limiting the
permissible insurance activities of bank holding companies.2
Notice of the applications, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with sections 3 and 4 of the
Act (49 Federal Register 935 (1984)). The time for
filing comments and views has expired, and the Board
has considered the applications and all comments
received in light of the factors set forth in section 3(c)
of the Act (12 U.S.C. § 1842(c)) and the considerations
specified in section 4(c)(8) of the Act.
Applicant is the fifth largest banking organization in
Texas, with 29 subsidiary banks that control aggregate
domestic deposits of $7.0 billion,3 representing 6.1
percent of the total deposits in commercial banks in
the state. Southwest is the seventh largest banking
organization in the state, with 37 subsidiary banks that
control aggregate domestic deposits of $5.5 billion,
Mercantile Texas Corporation, Dallas, Texas, a bank
holding company within the meaning of the Bank
8. Such expansion could well be considered to be inconsistent with
the entire scheme of the emergency thrift acquisition provisions of the
Garn-St Germain Act if an initial acquisition of a failing thrift were
used as a vehicle for the subsequent acquisition of a healthy thrift.
These provisions were constructed to allow banking organizations to
acquire thrifts only if the thrifts were failing, and even then, only as a
last resort if no other thrift was prepared to make the acquisition.
1. Applicant has also applied under section 3(a)(1) of the Act
(12 U.S.C. § 1842(a)(1)) for approval of the acquisition by its whollyowned inactive subsidiary, Mercantile Southwest Financial Corporation ("MSFC"), of the banking subsidiaries of Southwest and Applicant. MSFC will hold directly all of the banking subsidiaries of the
resulting organization.
2. See Garn-St Germain Depository Institutions Act of 1982, Pub.
L. No. 97-320, § 601, 96 Stat. 1469, 1536-38 (1982).
3. Unless otherwise indicated, deposit data are of June 30, 1983,
and reflect bank holding company formations and acquisitions approved through April 16, 1984. Statewide deposit data also reflect
Southwest's divestiture, on March 30, 1984, of The Mercantile
National Bank of Corpus Christi
596
Federal Reserve Bulletin • July 1984
representing 4.5 percent of the total deposits in commercial banks in the state. Upon consummation of the
proposed acquisition, Applicant's share of the total
deposits in commercial banks in the state would increase to 10.6 percent and Applicant would become
the second largest banking organization in Texas.
Although the Board is concerned about the effect of
this merger of the fifth and seventh largest banking
organizations in Texas on the concentration of banking
resources within the state, a number of factors mitigate
that concern. Upon consummation of this proposal,
there would remain a number of other large multibank
holding companies, which are active competitors
throughout the state. In addition, the share of deposits
held by the four largest banking organizations in Texas
would increase from 39.3 percent to only 41 percent
upon consummation of the proposed merger, and in
terms of concentration of deposits in commercial
banks, Texas would remain moderately concentrated.
Accordingly, it is the Board's view that the proposed
acquisition would not have a significantly adverse
effect on the concentration of banking resources in
Texas.
Subsidiary banks of Applicant compete directly with
subsidiary banks of Southwest in three banking markets: the Dallas, Houston, and San Antonio markets.
On March 30, 1984, Southwest sold its only bank in the
Corpus Christi banking market, The Mercantile National Bank of Corpus Christi. As a result of this
divestiture, consummation of this proposal would not
eliminate existing competition between Applicant and
Southwest in the Corpus Christi banking market.
Applicant is the third largest of 109 commercial
banking organizations in the Dallas banking market4
with $2.96 billion in deposits therein, representing 11.2
percent of the total deposits in commercial banks in
the market. Southwest is the seventh largest commercial banking organization in the Dallas banking market
with $864.7 million in deposits, representing 3.3 percent of the total deposits in commercial banks in the
market. Upon consummation of the proposed transaction, Applicant would remain the third largest banking
organization in the Dallas market, and would hold
approximately 14.5 percent of the total deposits in
commercial banks in that market.
4. The Dallas banking market is approximated by Dallas County,
the southeast quadrant of Denton County (including Denton and
Lewisville), the southwest quadrant of Collin County (including
McKinney and Piano), the northern half of Rockwall County, the
communities of Forney and Terrell in Kaufman County, Midlothian,
Waxahatchie, and Ferris in Ellis County, and Grapevine and Arlington in Tarrant County.
The Dallas banking market is considered moderately
concentrated, with the four largest banking organizations controlling 66.2 percent of the total deposits in
commercial banks and a Herfindahl-Hirschman Index
("HHI") of 1400. Upon consummation of this proposal, the four-firm concentration ratio would increase to
69.5 percent and the HHI would increase 74 points to
1474.5
Southwest is the fourth largest of 103 commercial
banking organizations in the Houston banking market6
with $2.8 billion in deposits, representing 8.7 percent
of the total deposits in commercial banks in the
market. Applicant is the seventh largest commercial
banking organization in the market with $1.0 billion in
deposits, representing 3.2 percent of the total deposits
in commercial banks in the market. Upon consummation of the proposed transaction, Applicant would
become the fourth largest banking organization in the
Houston market, with a market share of approximately 11.9 percent of the total deposits in commercial
banks in the market.
The Houston banking market is only moderately
concentrated, with a four-firm concentration ratio of
60.5 percent and a pre-merger HHI of 1104. Upon
consummation of the proposed transaction, the fourfirm concentration ratio would increase to 63.7 percent
and the HHI to 1159.
Applicant is the fourth largest commercial banking
organization in the San Antonio banking market7 with
$518.4 million in deposits, representing 8.4 percent of
the total deposits in commercial banks in the market.
Southwest is the ninth largest commercial banking
organization in the San Antonio market with $112.3
million in deposits, representing 1.8 percent of the
total deposits in commercial banks in the market.
Upon consummation of the proposed merger, Applicant would remain the fourth largest commercial banking organization in the San Antonio banking market
and would hold approximately 10.2 percent of the total
deposits in commercial banks in the market.
The San Antonio market is only moderately concentrated, with a four-firm concentration ratio of 62.6
percent and a pre-merger HHI of 1226. Upon consummation of the proposed transaction, the four-firm
5. Under the Department of Justice's Merger Guidelines, a market
in which the post-merger HHI is between 1000 and 1800 is considered
moderately concentrated. In such markets, the Department of Justice
is unlikely to challenge a merger that produces an increase in the HHI
of less than 100 points.
6. The Houston banking market is approximated by the Houston
Ranally Metropolitan Area.
7. The San Antonio banking market is approximated by the San
Antonio Ranally Metropolitan Area.
Legal Developments
concentration ratio would increase to 64.4 percent and
the HHI would increase by only 30 points, to 1256.
Based on all of the facts of record, including the
small increase in concentration in the Dallas, Houston,
and San Antonio banking markets and the number and
size of the remaining banking competitors in each of
the markets, the Board concludes that consummation
of the proposed transaction would not have a significantly adverse effect on competition in the three
markets in which subsidiary banks of Applicant compete with Southwest's subsidiary banks.
There are 19 markets in Texas in which only one of
the two holding companies competes.8 The Board has
considered the effects of this proposal on probable
future competition in these geographic markets and
has also examined the proposal in light of its proposed
guidelines for assessing the competitive effects of
market-extension mergers or acquisitions.9 In evaluating the effects of a proposed merger or acquisition
upon probable future competition, the Board considers market concentration, the number of probable
future entrants into the market, the size and market
position of the firm to be acquired, and the attractiveness of the market for de novo or foothold entry.
In view of the fact that Southwest had established a
banking subsidiary in the Corpus Christi banking market which it sold in anticipation of this transaction, the
Board believes that Southwest would be a probable
future entrant into the Corpus Christi market absent
approval of this proposal. However, the Corpus Christi banking market is not highly concentrated, as indicated by a three-firm concentration ratio of 57.5 percent, and there is no indication that the market is not
competitive. Thus, the Board does not view the elimination of Southwest as a probable future entrant into
the Corpus Christi market as having a substantial
adverse effect on probable future competition in the
market.
Of the 18 other markets in which either Applicant or
Southwest, but not the other, competes, ten are not
highly concentrated.10 With respect to the remaining
8. The ten markets in which only Applicant operates are: Abilene,
Austin, Comal County, Corpus Christi, El Paso, Hunt County,
Navarro County, Sherman-Denison, Waco, and Wichita Falls. The
nine markets in which only Southwest operates are: Beaumont-Port
Arthur, Brownsville, Fort Worth, Harlingen, Longview, Marshall,
Odessa, Orange, and Washington County.
9. 47 Federal Register 9017 (March 3,1982). Although the proposed
policy statement setting forth these guidelines has not been adopted
by the Board, the Board is using the policy guidelines in its analysis of
the effects of a proposal on probable future competition.
10. The United States Supreme Court has stated that "the potential
competition doctrine has meaning only as applied to concentrated
markets." United States v. Marine Bancorporation, 418 U.S. 602,630
(1974).
597
eight markets (as well as to seven of the ten markets
that are not highly concentrated), there are numerous
other probable future entrants into each market. On
the basis of these and other facts of record, the Board
concludes that consummation of this proposal would
not have any significant adverse effects on probable
future competition in any relevant market.
The Board has stated and continues to believe that
capital adequacy is an especially important factor in
the analysis of bank holding company expansion proposals, particularly where significant acquisitions are
proposed. In this case, the financial and managerial
resources of Applicant, Southwest, and their subsidiaries are consistent with approval, and their prospects
appear favorable. The Board notes that, because this
transaction would be accomplished through an exchange of shares, it would not have any significant
adverse effect on Applicant's financial resources. Considerations relating to the convenience and needs of
the communities to be served are also consistent with
approval of the application.
Applicant has also applied, pursuant to section
4(c)(8) of the Act, to acquire Southwest's nonbanking
subsidiary, Southwest Bancshares Life, through
which Applicant proposes to engage in the underwriting of credit life and credit accident and health insurance directly related to extensions of credit by the
banking subsidiaries acquired by Applicant from
Southwest. This activity is authorized for bank holding
companies by section 225.25(b)(9) of Regulation Y
(12 C.F.R. § 225.25(b)(9)).11
There is no evidence in the record to indicate that
approval of the proposed acquisition of Southwest
Bancshares Life would result in undue concentration
of resources, decreased or unfair competition, conflicts of interests, unsound banking practices, or other
adverse effects. Accordingly, the Board has determined that the balance of the public interest factors it
must consider under section 4(c)(8) of the Act is
favorable and consistent with approval of the application to acquire Southwest Bancshares Life.
Based on the foregoing and other facts of record, the
Board has determined that the applications under
sections 3 and 4 of the Act should be and hereby are
11. Regulation Y currently requires that an applicant must offer
premium rate reductions or equivalent public benefits in order to
engage in insurance underwriting activities. 12 C.F.R. § 225.25(b)(9)
n.7. Applicant has committed to offer the required rate reductions.
The Board notes, however, that it has proposed an amendment to
Regulation Y that would eliminate the rate reduction requirement
from its regulations concerning this activity. 48 Federal Register
53125 (November 25, 1983). Any final action taken by the Board with
respect to this rule would be applicable to Applicant.
598
Federal Reserve Bulletin • July 1984
approved. The merger shall not be consummated
before the thirtieth calendar day following the effective
date of this Order and neither the merger nor the
acquisition of Southwest's nonbanking subsidiary
shall occur later than three months after the effective
date of this Order, unless such period is extended for
good cause by the Board or by the Federal Reserve
Bank of Dallas, pursuant to delegated authority. The
approval of Applicant's proposal to acquire Southwest's nonbanking subsidiary is subject to the conditions set forth in Regulation Y, including sections
225.4(d) and 225.23(b)(3) (12 C.F.R. §§ 225.4(d) and
225.23(b)(3)), and to the Board's authority to require
such modification or termination of the activities of a
holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with the
provisions and purposes of the Act and the Board's
regulations and orders issued thereunder, or to prevent evasion thereof.
By order of the Board of Governors, effective
June 4, 1984.
Voting for this action: Governors Partee, Teeters, Rice,
and Gramley. Governor Teeters abstained from voting on the
insurance portion of these applications. Absent and not
voting: Chairman Volcker and Governors Martin and
Wallich.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
Legal Developments continued on next page.
Legal Developments
ORDERS APPROVED
UNDER BANK
HOLDING
COMPANY
599
ACT
By the Board of Governors
During June 1984 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
Applicant
Royal Bank Group, Inc.
Royal Oak, Michigan
Board action
(effective
date)
Bank
National Bank of Royal Oak
Royal Oak, Michigan
June 26, 1984
Section 4
Applicant
First Security Corporation
Salt Lake City, Utah
By Federal Reserve
Effective
^
Bank
Mission Bay Mortgage Company
San Diego, California
June 25, 1984
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
Alaska Continental Bancorp
Anchorage, Alaska
American Bank Holding Corporation
Corpus Christi, Texas
American Bankshares, Inc.
War, West Virginia
Amoskeag Bank Shares, Inc.
Manchester, New Hampshire
Arvada Bankshares, Ltd.
Denver, Colorodo
Assumption Bancshares, Inc.
Napoleonville, Louisiana
Bank(s)
Alaska Continental Bank
Anchorage, Alaska
American National Bank
Corpus Christi, Texas
First Clark National Bank
Northfork, West Virginia
Bank Meridian, N.A.
Hampton, New Hampshire
The First National Bank of
Arvada
Arvada, Colorodo
Assumption Bank & Trust
Company
Napoleonville, Louisiana
Reserve
Bank
Effective
date
San Francisco
June 18, 1984
Dallas
June 22, 1984
Richmond
June 6, 1984
Boston
June 8, 1984
Kansas City
June 22, 1984
Atlanta
June 18, 1984
600
Federal Reserve Bulletin • July 1984
Section 3—Continued
,.
A
Applicant
Atlanta Bancorp, Inc.
Atlanta, Texas
Auburn National Bancorporation
Auburn, Alabama
Beverly National Corporation
Beverly, Massachusetts
Cashmere Valley Bancshares,
Inc.
Cashmere, Washington
Central Fidelity Banks, Inc.
Richmond, Virginia
Central Illinois Financial Corporation
Champaign, Illinios
Citizens Bancorporation
Sheboygan, Wisconsin
Citizens Bancshares, Inc.
Ontonagon, Michigan
Commonwealth Bancorporation,
Inc.
Glendale, Colorado
Community Bancorp
Royal Center, Indiana
Community Bank System, Inc.
Canton, New York
Community Capital Corp.
Houston, Texas
Community National Corporation
Grand Forks, North Dakota
Consolidated Banc Shares, Inc.
Clarksburg, West Virginia
Financial and Property Management, Inc.
Emporia, Kansas
Financial Trans Corp.
Carlisle, Pennsylvania
First Community Bancshares,
Inc.
Princeton, West Virginia
First Fayette Bancshares, Inc.
Fayette, Alabama
„ ,, .
Bank(s)
The Atlanta National Bank
Atlanta, Texas
Auburn National Bank of Auburn
Auburn, Alabama
The Beverly National Bank
Beverly, Massachusetts
Columbia Valley Bank
East Wenatchee, Washington
Cashmere Valley Bank
Cashmere, Washington
The Bank of Christiansburg
Christiansburg, Virginia
The Champaign National Bank
Champaign, Illinois
Market Place National Bank
Champaign, Illinois
North Side Bancorp, Inc.
Racine, Wisconsin
The Citizens State Bank of Ontonagan
Ontonagon, Michigan
Commonwealth State Bank
Glendale, Colorado
Community State Bank
Royal Center, Indiana
The Exchange National Bank
Olean, New York
Community National Bank
Friendswood, Texas
Community National Bank of
Grand Forks
Grand Forks, North Dakota
The Lowndes Bank
Clarksburg, West Virginia
Educators Investment Company
of Kansas, Inc.
Emporia, Kansas
Chambersburg Trust Company
Chambersburg, Pennsylvania
Bank of Winfield
Winfield, West Virginia
The First National Bank of
Fayette
Fayette, Alabama
Reserve
.
Bank
Effective
date
Dallas
June 14, 1984
Atlanta
May 31, 1984
Boston
May 29, 1984
San Francisco
May 30, 1984
Richmond
June 12, 1984
Chicago
June 15, 1984
Chicago
June 5, 1984
Minneapolis
June 14, 1984
Kansas City
June 1, 1984
Chicago
June 5, 1984
New York
May 31, 1984
Dallas
June 11, 1984
Minneapolis
June 21, 1984
Richmond
June 8, 1984
Kansas City
June 6, 1984
Philadelphia
May 31, 1984
Richmond
June 12, 1984
Atlanta
June 12, 1984
Legal Developments
Section 3—Continued
Applicant
First National Bancorp
Gainesville, Georgia
First National Bancshares of
West Alabama, Inc.
Alice ville, Alabama
First National Corporation of
West Point
West Point, Mississippi
First Security Bancorp
Tacoma, Washington
FNB Financial Corporation
Scottsburg, Indiana
Fourth Financial Corporation
Wichita, Kansas
F.S. Bancorp
Lagrange, Indiana
General Bank Corporation of
Kentucky
Horse Cave, Kentucky
GuarantyShares of West Virginia, Inc.
Huntington, West Virginia
Hancock Holding Company
Gulfport, Mississippi
Harrison County Bancshares,
Inc.
Bethany, Missouri
Harvest Bancorp, Inc.
Hamilton, Virginia
Hillside Investors, Ltd.
Hillside, Illinois
Independent Community Financial Corporation
Rockwall, Texas
Iowa Park Bancshares, Inc.
Iowa Park, Texas
Jamestown Union Bancshares,
Inc.
Jamestown, Tennessee
Kentucky Southern Bancorp,
Inc.
Bowling Green, Kentucky
Lake Cities Financial Corporation
Lake Dallas, Texas
„ w N
Bank(s)
Reserve
fiank
Effective
dat£
Atlanta
June 8, 1984
Atlanta
June 13, 1984
St. Louis
June 11, 1984
San Francisco
June 11, 1984
St. Louis
June 27, 1984
Kansas City
June 22, 1984
Chicago
May 29, 1984
St. Louis
June 18, 1984
The Guaranty National Bank of
Huntington
Huntington, West Virginia
Hancock Bank
Gulfport, Mississippi
National Bancshares, Inc.
Bethany, Missouri
Richmond
June 21, 1984
Atlanta
May 30, 1984
Kansas City
June 14, 1984
Farmers and Merchants National
Bank of Hamilton
Hamilton, Virginia
Bank of Hillside
Hillside, Illinois
Wylie Bank, N.A.
Wylie, Texas
Balch Springs Bank, N.A.
Balch Springs, Texas
Electra State Bank and Trust
Company
Electra, Texas
Union Bank
Jamestown, Tennessee
Richmond
June 6, 1984
Chicago
June 15, 1984
Dallas
June 18, 1984
Dallas
June 6, 1984
Atlanta
June 7, 1984
St. Louis
May 30, 1984
Dallas
June 14, 1984
Granite City Bank
Elberton, Georgia
First National Bank of Aliceville
Alice ville, Alabama
Bank of Gordo
Gordo, Alabama
The First National Bank of West
Point
West Point, Mississippi
First Security Bank
Tacoma, Washington
First National Bank of Scottsburg
Scottsburg, Indiana
Olathe Bancshares, Inc.
Wichita, Kansas
Farmers State Bank
Lagrange, Indiana
Horse Cave State Bank
Horse Cave, Kentucky
The Citizens National Bank of
Bowling Green
Bowling Green, Kentucky
Lake Cities State Bank
Lake Dallas, Texas
601
602
Federal Reserve Bulletin • July 1984
Section 3—Continued
Applicant
Lamar Trust Bancshares, Inc.
Lamar, Missouri
L&W, Inc.
Portsmouth, Iowa
Marie R. Turner Holding
Company
Jackson, Kentucky
Merchants Republic Corp.
Terre Haute, Indiana
Metro Bancorp, Inc.
Melrose, Massachusetts
Metropolitan Bancshares, Inc.
Dallas, Texas
Minnesota Asset Management
Corporation
St. Louis Park, Minnesota
Montbello Bankcorp, Inc.
Denver, Colorado
Moran National Bancshares,
Inc.
Moran, Texas
National American Bancorp,
Inc.
Towanda, Pennsylvania
New Boston Bancshares, Inc.
New Boston, Texas
Northern Trust Corporation
Chicago, Illinois
O.F.I.
Navarre, Minnesota
Olathe Bancshares, Inc.
Wichita, Kansas
Old Point Financial Corporation
Hampton, Virginia
Olmstead Bancorporation, Inc.
Byron, Minnesota
PSB Corporation
Wellsburg, Iowa
Pulaski Bancshares, Inc.
Pulaski, Wisconsin
Richland State Bancorp, Inc.
Rayville, Louisiana
Bank(s)
Lamar Trust Company
Lamar, Missouri
State Bank of Portsmouth
Portsmouth, Iowa
Citizens Bank of Jackson
Jackson, Kentucky
The Merchants National Bank of
Terre Haute
Terre Haute, Indiana
Metropolitan Bank and Trust
Company
Melrose, Massachusetts
Metropolitan National BankLewisville
Lewisville, Texas
Summit State Bank of Richfield
Richfield, Minnesota
Mission State Bank
Lake wood, Colorado
The Moran National Bank
Moran, Texas
The First National Bank of Bradford County
Towanda, Pennsylvania
The First National Bank of New
Boston
New Boston, Texas
Northern Trust of Florida Corporation
Miami, Florida
Orano Financial, Inc.
Navarre, Minnesota
Patrons Bancorporation, Inc.
Olathe, Kansas
The Old Point National Bank of
Phoebus
Hampton, Virginia
Byron Bancorporation, Inc.
Byron, Minnesota
State Bank of Byron
Byron, Minnesota
Peoples Savings Bank
Wellsburg, Iowa
Pulaski State Bank
Pulaski, Wisconsin
Richland State Bank
Rayville, Louisiana
Reserve
Bank
Effective
date
Kansas City
June 4, 1984
Chicago
June 7, 1984
Cleveland
June 5, 1984
Chicago
June 6, 1984
Boston
June 18, 1984
Dallas
June 8, 1984
Minneapolis
May 25, 1984
Kansas City
June 11, 1984
Dallas
May 31, 1984
Philadelphia
June 4, 1984
Dallas
June 28, 1984
Chicago
June 19, 1984
Minneapolis
May 31, 1984
Kansas City
June 22, 1984
Richmond
June 27, 1984
Minneapolis
May 30, 1984
Chicago
June 21, 1984
Chicago
June 20, 1984
Dallas
June 1, 1984
Legal Developments
Section 3—Continued
.
Applicant
„ ,, .
Bank(s)
Rosholt Bancorporation, Inc.
Rosholt, Wisconsin
SecurShares Incorporated
Navosota, Texas
Shamrock Bancshares, Inc.
Coalgate, Oklahoma
Simmons First National Corporation
Pine Bluff, Arkansas
Somerset Bancorp, Inc.
Somerville, New Jersey
Stephenson National Bancorp,
Inc.
Marinette, Wisconsin
South St. Paul Bancshares, Inc.
South St. Paul, Minnesota
The State Bank of Rosholt
Rosholt, Wisconsin
The Security State Bank
Navasota, Texas
Sooner Bancshares, Inc.
Caddo, Oklahoma
First Bank and Trust of Jonesboro
Jonesboro, Arkansas
Somerset Trust Company
Somerville, New Jersey
The Stephenson National Bank
and Trust
Marinette, Wisconsin
Summit State Bank of South St.
Paul
South St. Paul, Minnesota
First National Bank of Ripley
Ripley, West Virginia
Sunwest Bank of Sandoval County, N.A.
Rio Rancho, New Mexico
Texas Commerce Bank-Midland,
N.A.
Midland, Texas
Iredell State Bank of Iredell
Iredell, Texas
First National Bank of Pearland
Pearland, Texas
The Peoples National Bank of
Central Jersey
Piscataway, New Jersey
Natick Trust Company
Natick, Massachusetts
New Martinville Bank
New Martin ville, West Virginia
Western National Bank of Texas
Fort Worth, Texas
Summit Bankshares, Inc.
Ripley, West Virginia
Sunwest Financial Services,
Inc.
Alburquerque, New Mexico
Texas Commerce Bancshares,
Inc.
Houston, Texas
Texas Community Bankers, Inc.
Iredell, Texas
Texas Guld Coast Bancorp, Inc.
Houston, Texas
Ultra Bancorporation
Bridgewater, New Jersey
UST Corp
Boston, Massachusetts
Wesbanco, Inc.
Wheeling, West Virginia
Western National Bank of
Texas
Fort Worth, Texas
Reserve
^
Effective
date
Chicago
June 22, 1984
Dallas
June 14, 1984
Dallas
June 1, 1984
St. Louis
June 15, 1984
New York
June 20, 1984
Chicago
June 11, 1984
Minneapolis
May 31, 1984
Richmond
June 22, 1984
Kansas City
June 7, 1984
Dallas
June 14, 1984
Dallas
June 12, 1984
Dallas
June 15, 1984
New York
June 22, 1984
Boston
June 13, 1984
Cleveland
June 22, 1984
Dallas
May 29, 1984
Section 4
Applicant
First Lena Corporation
Lena, Illinois
Nonbanking
company
First Lena Insurance Agency,
Inc.
Lena, Illinois
Reserve
Bank
Chicago
Effective
date
June 18, 1984
603
604
Federal Reserve Bulletin • July 1984
Section 4—Continued
Nonbanking
company
Applicant
First National Bankshares of
Beloit, Inc.
Beloit, Kansas
First Oklahoma Bancorporation,
Inc.
Oklahoma City, Oklahoma
First Oklahoma Bancorporation,
Inc.
Oklahoma City, Oklahoma
First Valley Bancorp
Bethlehem, Pennsylvania
First Vermont Financial Corporation
Brattleboro, Vermont
Marshall & Ilsley Corporation
Milwaukee, Wisconsin
Peoples Investment Corporation
Cuba, Missouri
S.B.T. Financial, Inc.
Townsend, Montana
Reserve
Bank
Effective
date
First Loan Company
Beloit, Kansas
Kansas City
June 5, 1984
Holliday Mortgage Corporation
Tulsa, Oklahoma
Kansas City
June 6, 1984
Sun Country Financial Corporation of Colorado
Colorado Springs, Colorado
Lehigh Securities Corporation
Lehigh County, Pennsylvania
Vermont Mortgage Group, Inc.
Wilmington, Vermont
Kansas City
May 29, 1984
Philadelphia
June 8, 1984
Boston
June 13, 1984
Chicago
June 13, 1984
St. Louis
June 6, 1984
Minneapolis
June 14, 1984
Grootemaat Corporation
Milwaukee, Wisconsin
Dorf Insurance Agency, Inc.
Cuba, Missouri
Kearns Agency
Townsend, Montana
Sections 3 and 4
Bank(s)/Nonbanking
Company
Applicant
First National Agency Company
of Deer River, Inc.
Deer River, Minnesota
Tuttle Bancshares, Inc.
Tuttle, Oklahoma
ORDERS APPROVED
By Federal Reserve
. ..
Applicant
State Bank of Albany
Albany, New York
First National Bank of
Deer River
Deer River, Minnesota
general insurance activities
The Bank of Tuttle
Tuttle, Oklahoma
Tuttle Insurance Agency, Inc.
Tuttle, Oklahoma
UNDER BANK MERGER
Reserve
Bank
Effective
date
Minneapolis
June 1, 1984
Kansas City
June 1, 1984
ACT
Banks
„ ,,,
Bank(s)
The Mohawk National Bank
Schenectady, New York
Reserve
^
New York
Effective
^
June 13, 1984
Legal Developments
PENDING
CASES INVOLVING
THE BOARD OF
GOVERNORS
This list of pending cases does not include
Governors is not named a party.
suits against
the Federal
Melcher
No. 84-
Oklahoma
v. Federal
Open Market
Committee,
Bankers
Association
v. Board
of
Governors,
No. 84-3269 and No. 84-3270 (11th Cir., filed Apr.
20, 1984).
Northeast
Bancorp,
Inc.
v. Board
of
Governors,
No. 84-4047, No. 84-4051, No. 84-4053 (2d Cir.,
filed Mar. 27, 1984).
Huston
v. Board
of Governors,
N o . 84-1361 (8th C i r . ,
filed Mar. 20, 1984); and No. 84-1084 (8th Cir. filed
Jan. 17, 1984).
De Young v. Owens, No. SC 9782-20-6 (Iowa Dist.
Ct., filed Mar. 8, 1984).
First
Tennessee
National
Corp.
v. Board
of
Gover-
nors, No. 84-3201 (6th Cir., filed Mar. 6, 1984).
Independent
Insurance
Agents
of America
v. Board
of
Governors, No. 84-1083 (D.C. Cir., filed Mar. 5,
1984).
State
of Ohio,
v. Board
of Governors,
N o . 84-1270
(10th Cir., filed Jan. 30, 1984).
Ohio Deposit
Guarantee
Industrial
Bankers
Governors,
Association
Institutions
Assurance
of
Corp.
v. Board
of
Governors, No. 84-1101 (4th Cir., filed Jan. 27,
1984).
First Bancorporation
v. Board
of Governors,
No. 84-
1011 (10th Cir., filed Jan. 5, 1984).
Dimension
Financial
Corporation
in which the Board
Association
v. Federal
of
Reserve
v. Board
Insurance
Agents
Board of Governors,
of America,
Inc.
v.
No. 83-1818 (8th Cir., filed
June 21, 1983); and No. 83-1819 (8th Cir., filed June
21, 1983).
The Committee
for
Monetary
Reform
v. Board
of
Governors, No. 84-5067 (D.C. Cir., filed June 16,
1983).
Securities
Industry
Association
v. Board
of
Gover-
nors, No. 83-614 (U.S., filed Feb. 3, 1983).
Association
of Data Processing
Service
Organizations
v. Board of Governors, No. 82-1910 (D.C. Cir., filed
Aug. 16, 1982); and No. 82-2108 (D.C. Cir., filed
Aug. 16, 1982).
Wyoming
Bancorporation
v. Board
of
Governors,
No. 83-1634 (10th Cir., filed May 20, 1982).
First Bancorporation
v. Board
of Governors,
No. 82-
1401 (10th Cir., filed Apr. 9, 1982).
v. Board
of Governors,
N o . 83-3570 (11th
Cir., filed Sept. 28, 1981).
v. Board
of
Governors,
No. 81-38 (E.D. Ky., filed Feb. 24, 1981).
9 to 5 Organization
for
Board of Governors,
Women
Office
Workers
v.
No. 83-1171 (1st Cir., filed
Dec. 30, 1980).
Securities
Industry
Association
v. Board
of
Gover-
nors, No. 82-1766 (U.S., filed Oct. 24, 1980).
A. G. Becker,
Inc. v. Board of Governors,
N o . 82-1766
(U.S., filed Oct. 14, 1980).
of
Gover-
nors, No. 83-2696 (10th Cir., filed Dec. 30, 1983).
Banks
First Bank & Trust Company
v. Board
Governors, No. 84-1122 (10th Cir., filed Jan. 27,
1984).
Financial
Bankers
Independent
Wolfson
Fund v. Board of
No. 84-1257 (10th Cir., filed Jan. 28, 1984).
Colorado
Reserve
Board, No. 83-2591 (10th Cir., filed Dec. 13, 1983).
1335 (D.D.C., filed, Apr. 30, 1984).
Florida
605
A. G. Becker,
Inc. v. Board of Governors,
(D.C. Cir., filed Aug. 25, 1980).
N o . 81-1493
606
Membership of the Board of Governors
of the Federal Reserve System, 1913-84
APPOINTIVE
MEMBERS1
Name
Federal Reserve
District
Date of initial
oath of office
Other dates and information relating
to membership2
Aug. 10, 1914
Reappointed in 31916 and 1926. Served until
Feb. 3, 1936.
Term expired Aug. 9, 1918.
Resigned July 21, 1918.
Term expired Aug. 9, 1922.
Reappointed in 1924. Reappointed in 1934
from the Richmond
District. Served until
Feb. 3, 1936.3
Resigned Mar. 15, 1920.
Term expired Aug. 9, 1920.
Reappointed in 1928. Resigned Sept. 14,
1930.
Term expired Mar. 4, 1921.
Resigned May 12, 1923.
Died Mar. 22, 1923.
Resigned Sept. 15, 1927.
Reappointed
in 1931. Served until Feb. 3,
1936.4
Died Nov. 28, 1930.
Resigned Aug. 31, 1930.
Resigned May 10, 1933.
Term expired Jan. 24, 1933.
Resigned Aug. 15, 1934.
Reappointed in 1936 and 1948. Resigned
May 31, 1961.
Served until Feb. 10, 1936.3
Reappointed in 1936, 1940, and 1944.
Resigned July 14, 1951.
Resigned Sept. 30, 1937. 3
Served until Apr. 4, 1946.
Reappointed in 1942. Died Dec. 2, 1947.
Resigned July 9, 1936.
Reappointed in 1940. Resigned
Apr. 15, 1941.
Served until Sept. 1, 1950.33
Served until Aug. 13, 1954.
Resigned Nov. 30, 1958.
Died Dec. 4, 1949.
Resigned Mar. 31, 1951.
Resigned Jan. 31, 1952.
Resigned June 30, 1952.
Reappointed in 1956. Term expired Jan. 31,
1970.
Reappointed in 1958. Resigned Feb. 28, 1965.
Reappointed in 1964. Resigned Apr. 30, 1973.
Served through Feb. 28, 1966.
Died Oct. 21, 1954.
Retired Apr. 30, 1967.
Reappointed in 1960. Resigned Sept. 18, 1963.
Charles S. Hamlin
Boston
Paul M. Warburg...
Frederic A. Delano
W.P.G. Harding ....
Adolph C. Miller ...
.New York
.Chicago
.Atlanta
.San Francisco
Albert Strauss
Henry A. Moehlenpah
Edmund Piatt
New York
Chicago....
New York
.Oct. 26, 1918
.Nov. 10, 1919
June 8, 1920
David C. Wills
John R. Mitchell
Milo D. Campbell
Daniel R. Crissinger
George R. James
Cleveland...
Minneapolis
Chicago
Cleveland...
St. Louis
.Sept. 29, 1920
.May 12, 1921
.Mar. 14, 1923
.May 1, 1923
.May 14, 1923
Edward H. Cunningham...Chicago
Roy A. Young
Minneapolis.
Eugene Meyer
New York ...
Wayland W. Magee
Kansas City,
Eugene R. Black
Atlanta
M.S. Szymczak
Chicago
do
.Oct. 4, 1927
.Sept. 16, 1930
.May 18, 1931
.May 19, 1933
.June 14, 1933
J.J. Thomas
Marriner S. Eccles
do
.Nov. 15, 1934
Kansas City...
San Francisco
do
do
, do
do
Joseph A. Broderick
New York ...
John K. McKee
Cleveland....
Ronald Ransom
Atlanta
Ralph W. Morrison
Dallas
Chester C. Davis
Richmond....
Ernest G. Draper
New York ...
Rudolph M. Evans
Richmond....
James K. Vardaman, Jr. ..St. Louis
Lawrence Clayton
Boston
Thomas B. McCabe
Philadelphia.
Edward L. Norton
Atlanta
Oliver S. Powell
Minneapolis
Wm. McC. Martin, Jr
New York ..
.Feb. 3, 1936
do
do
.Feb. 10,1936
.June 25, 1936
.Mar. 30, 1938
.Mar. 14, 1942
.Apr. 4, 1946
.Feb. 14, 1947
.Apr. 15, 1948
.Sept. 1, 1950
do
.April 2, 1951
A.L. Mills, Jr
J.L. Robertson
C. Canby Balderston
Paul E. Miller
Chas. N. Shepardson
G.H. King, Jr
.Feb. 18, 1952
do
.Aug. 12, 1954
.Aug. 13, 1954
.Mar. 17, 1955
.Mar. 25, 1959
San Francisco
Kansas City...
Philadelphia...
.Minneapolis ...
Dallas.
Atlanta
607
Federal Reserve
District
Name
Date of initial
oath of office
Other dates and information relating
to membership2
Reappointed
in 1962. Served until Feb. 13,
1976.3
Served until Mar. 8, 1974.3
Served through May 31, 1972.
Resigned Aug. 31, 1974.
Reappointed in 1968. Resigned Nov. 15, 1971.
Term began Feb. 1, 1970. Resigned Mar. 31,
1978.
Resigned June 1, 1975.
Resigned Jan. 2, 1976.
Resigned May 15, 1976.
George W. Mitchell.
.Chicago
Aug. 31, 1961
J. Dewey Daane
Sherman J. Maisel...
Andrew F. Brimmer.
William W. Sherrill..
Arthur F. Burns
.Richmond
.San Francisco
.Philadelphia
.Dallas
.New York
Nov. 29, 1963
Apr. 30, 1965
Mar. 9, 1966
May 1, 1967
Jan. 31, 1970
John E. Sheehan
Jeffrey M. Bucher
Robert C. Holland ....
Henry C. Wallich
Philip E. Cold well
Philip C. Jackson, Jr.
J. Charles Partee
Stephen S. Gardner...
David M. Lilly
G. William Miller
Nancy H. Teeters
Emmett J. Rice
Frederick H. Schultz.
Paul A. Volcker
Lyle E. Gramley
Preston Martin
Martha R. Seger
.St. Louis
.San Francisco
.Kansas City
.Boston
.Dallas
.Atlanta
.Richmond
.Philadelphia
.Minneapolis
.San Francisco
.Chicago
.New York
.Atlanta
.Philadelphia
.Kansas City
.San Francisco
.Chicago
Jan. 4, 1972
June 5, 1972
June 11, 1973
Mar. 8, 1974
Oct. 29, 1974
July 14, 1975
Jan. 5, 1976
Feb. 13, 1976
June 1, 1976
Mar. 8, 1978
Sept. 18, 1978
June 20, 1979
July 27, 1979
Aug. 6, 1979
May 28, 1980
Mar. 31, 1982
July 2, 1984
Chairmen4
Charles S. Hamlin
W.P.G. Harding
Daniel R. Crissinger...
Roy A. Young
Eugene Meyer
Eugene R. Black
Marriner S. Eccles
Thomas B. McCabe ...
Wm. McC. Martin, Jr.
Arthur F. Burns
G. William Miller
Paul A. Volcker
EX-OFFICIO
.Aug. 10, 1914-Aug. 9, 1916
.Aug. 10, 1916-Aug. 9, 1922
.May 1, 1923-Sept. 15, 1927
.Oct. 4, 1927-Aug. 31, 1930
.Sept. 16, 1930-May 10, 1933
.May 19, 1933-Aug. 15, 1934
.Nov. 15, 1934-Jan. 31, 1948
.Apr. 15, 1948-Mar. 31, 1951
.Apr. 2, 1951-Jan. 31, 1970
.Feb. 1, 1970-Jan. 31, 1978
.Mar. 8, 1978-Aug. 6, 1979
.Aug. 6, 1979-
Served through Feb. 29, 1980.
Resigned Nov. 17, 1978.
Died Nov. 19, 1978.
Resigned Feb. 24, 1978.
Resigned Aug. 6, 1979.
Served through June 27, 1984.
Served through Feb. 11, 1982.
Vice Chairmen4
Frederic A. Delano
Paul M. Warburg
Albert Strauss
Edmund Piatt
J.J. Thomas
Ronald Ransom
C. Canby Balderston
J.L. Robertson
George W. Mitchell
Stephen S. Gardner
Frederick H. Schultz
Preston Martin
Aug 10, 1914-Aug. 9, 1916
Aug 10, 1916-Aug. 9, 1918
Oct. 26, 1918-Mar. 15, 1920
July 23, 1920-Sept. 14, 1930
Aug. 21, 1934-Feb. 10, 1936
Aug. 6, 1936-Dec. 2, 1947
Mar. 11, 1955-Feb. 28, 1966
Mar. 1, 1966-Apr. 30, 1973
May 1, 1973-Feb. 13, 1976
Feb. 13, 1976-Nov. 19, 1978
July 27, 1979-Feb. 11, 1982
Mar. 31, 1982-
MEMBERS1
Secretaries of the Treasury
W.G. McAdoo
Dec. 23, 1913-Dec. 15, 1918
Carter Glass
Dec. 16, 1918-Feb. 1, 1920
David F. Houston
Feb. 2, 1920-Mar. 3, 1921
Andrew W. Mellon
Mar. 4, 1921-Feb. 12, 1932
Ogden L. Mills
Feb. 12, 1932-Mar. 4, 1933
William H. Woodin
Mar. 4, 1933-Dec. 31, 1933
Henry Morgenthau, Jr. ..Jan. 1, 1934-Feb. 1, 1936
Comptrollers of the Currency
John Skelton Williams ...Feb. 2, 1914-Mar. 2, 1921
Daniel R. Crissinger
Mar. 17, 1921-Apr. 30, 1923
Henry M. Dawes
May 1, 1923-Dec. 17, 1924
Joseph W. Mcintosh
Dec. 20, 1924-Nov. 20, 1928
J.W. Pole
Nov. 21, 1928-Sept. 20, 1932
J.F.T. O'Connor
May 11, 1933-Feb. 1, 1936
1. Under the provisions of the original Federal Reserve Act, the
Federal Reserve Board was composed of seven members, including
five appointive members, the Secretary of the Treasury, who was
ex-officio chairman of the Board, and the Comptroller of the
Currency. The original term of office was ten years, and the five
original appointive members had terms of two, four, six, eight, and
ten years respectively. In 1922 the number of appointive members
was increased to six, and in 1933 the term of office was increased to
twelve years. The Banking Act of 1935, approved Aug. 23, 1935,
changed the name of the Federal Reserve Board to the Board of
Governors of the Federal Reserve System and provided that the
Board should be composed of seven appointive members; that the
Secretary of the Treasury and the Comptroller of the Currency
should continue to serve as members until Feb. 1, 1936; that the
appointive members in office on the date of that act should continue
to serve until Feb. 1, 1936, or until their successors were appointed
and had qualified; and that thereafter the terms of members should
be fourteen years and that the designation of Chairman and Vice
Chairman of the Board should be for a term of four years.
2. Date after words "Resigned" and "Retired" denotes final day
of service.
3. Successsor took office on this date.
4. Chairman and Vice Chairman were designated Governor and
Vice Governor before Aug. 23, 1935.
64
Financial and Business Statistics
CONTENTS
WEEKLY REPORTING
Domestic Financial
Statistics
A3 Reserves, money stock, liquid assets, and debt
measures
A4 Reserve balances of depository institutions,
Reserve Bank credit
A5 Reserves and borrowings of depository
institutions
A5 Federal funds and repurchase agreements of
large member banks
COMMERCIAL
BANKS
Assets and liabilities
A18 All reporting banks
A19 Banks in New York City
A20 Balance sheet memoranda
A20 Branches and agencies of foreign banks
A21 Gross demand deposits of individuals,
partnerships, and corporations
FINANCIAL
MARKETS
A6 Federal Reserve Bank interest rates
A7 Reserve requirements of depository institutions
A8 Maximum interest rates payable on time and
savings deposits at federally insured institutions
A9 Federal Reserve open market transactions
All Commercial paper and bankers dollar
acceptances outstanding
A22 Prime rate charged by banks on short-term
business loans
A23 Terms of lending at commercial banks
A24 Interest rates in money and capital markets
A25 Stock market—Selected statistics
A26 Selected financial institutions—Selected assets
and liabilities
FEDERAL RESERVE
FEDERAL
POLIC YINSTR
UMENTS
BANKS
A10 Condition and Federal Reserve note statements
All Maturity distribution of loan and security
holdings
MONETARY
AND CREDIT
AGGREGATES
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
A14 Bank debits and deposit turnover
A15 Loans and securities of all commercial banks
COMMERCIAL
BANKING
INSTITUTIONS
A16 Major nondeposit funds
A17 Assets and liabilities, last-Wednesday-of-month
series
All
A28
A29
A29
FINANCE
Federal fiscal and financing operations
U.S. Budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types and
ownership
A30 U.S. government securities dealers—
Transactions, positions, and financing
A31 Federal and federally sponsored credit
agencies—Debt outstanding
A2
Federal Reserve Bulletin • July 1984
International
SECURITIES MARKETS
AND
CORPORATE
FINANCE
A32 New security issues—State and local
governments and corporations
A33 Open-end investment companies—Net sales and
asset position
A3 3 Corporate profits and their distribution
A34 Nonfinancial corporations—Assets and
liabilities
A34 Total nonfarm business expenditures on new
plant and equipment
A35 Domestic finance companies—Assets and
liabilities and business credit
REAL
ESTATE
A36 Mortgage markets
A37 Mortgage debt outstanding
CONSUMER
INSTALLMENT
CREDIT
A3 8 Total outstanding and net change
A39 Terms
FLOW OF
A40 Funds raised in U.S. credit markets
A41 Direct and indirect sources of funds to credit
markets
Statistics
A42 Nonfinancial business activity—Selected
measures
A42 Output, capacity, and capacity utilization
A43 Labor force, employment, and unemployment
A44 Industrial production—Indexes and gross value
A46 Housing and construction
A47 Consumer and producer prices
A48 Gross national product and income
A49 Personal income and saving
A50
A51
A51
A51
U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A52 Foreign branches of U.S. banks—Balance sheet
data
A54 Selected U.S. liabilities to foreign official
institutions
REPORTED
BY BANKS
IN THE UNITED
STATES
A54
A55
A57
A58
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A58 Banks' own claims on unaffiliated foreigners
A59 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED BY NONBANKING
ENTERPRISES IN THE UNITED
BUSINESS
STATES
A60 Liabilities to unaffiliated foreigners
A61 Claims on unaffiliated foreigners
FUNDS
Domestic Nonfinancial
Statistics
SECURITIES
HOLDINGS
AND
TRANSACTIONS
A62 Foreign transactions in securities
A63 Marketable U.S. Treasury bonds and notes—
Foreign holdings and transactions
INTEREST AND EXCHANGE
RATES
A63 Discount rates of foreign central banks
A64 Foreign short-term interest rates
A64 Foreign exchange rates
A65 Guide to Tabular Presentation,
Statistical Releases, and Special
Tables
Domestic Financial Statistics
1.10
A3
RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent) 1
Item
Q2
Reserves of depository
1
2 Required
3 Nonborrowed
4 Monetary base 3
5
6
7
8
9
Concepts
Ml
M2
M3
L
Debt
Q4
Q3
1984
Jan.
QI
Feb.
Mar.
Apr.
May
institutions2
of money, liquid assets,
Nontransaction
10 In M2 5
11 In M3 only 6
1984
1983
and
.C
7.4'
-9.6
6.C
10.7
8.0
-46.2
10.1
5.2'
4.1
9.3
15.7'
12.2'
.4
6.9'
10^
10.4
13.3
12.6
8.8
10.7
n.a.
n.a.
3.7'
31.5'
9.0'
27.3'
7.6
18.2
-18.2
-.3
5.8
-11.1'
2.4'
23.7'
-2.8'
8.2'
18.6
-3.7
14.2
36.6
-3.4
11.2
70.5'
-8.1
10.8
63.2
.7
4.8
38.6
1.4
6.7'
40.5
1.4
13.0
40.2
17.7'
ll^
12.&
22.(X
10.3'
15.9'
13.6'
12.7
13.5
5.6'
n.a.
n.a.
14.9
11.8
12.0
5.2
10.2
6.0
5.9
2.9
8.1
.5
-.1
8.0
7.8
6.9
4.5
8.2
9.0
7.6
5.9
9.8
12.8
19.0
8.0
24.5
10.5
11.6
10.6
9.3
10.3
10.7
9.5
6.9
7.4
9.6
11.8'
4.8
8.5
9.9
8.9
10.3'
7.2
7.C
9.C
lO^
12.5'
10.7
5.8'
6.7'
7.8'
13.<y
6.6
8.5'
10.1'
11.2'
n.O'
10.2
3.8
6.1
9.8'
9.7'
6.9'
Yl.V
4.2'
10.6
9.2'
16.8'
-14.8
-21.2
-14.6
-6.3
13.7
-4.8'
-6.4
19.3
-.2'
-16.2
4.4
io.(y
-22.3
-.7
9.1'
-1.3
-17.0
51.2
-2.2
12.3
63.5
-4.4
18.8
58.1'
-5.1
11.8
58^
23.2
7.3
9.9
22.9'
8.7'
9.7
13.3'
9.5
10.4'
14.7'
11.8
14.0
1.3
9.3
-11.7
.8
debt4
components
Time and savings
deposits
Commercial banks
Savings 7
Small-denomination time 8
Large-denomination time 9 , 1 0
Thrift institutions
15
Savings 7
16
Small-denomination time
17
Large-denomination time 9
12
13
14
Debt
components4
18 Federal
19 Nonfederal
20 Total loans and securities at commercial banks"
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.
2. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
3. The monetary base not adjusted for discontinuities consists of total
reserves plus required clearing balances and adjustments to compensate for float
at Federal Reserve Banks plus the currency component of the money stock less
the amount of vault cash holdings of thrift institutions that is included in the
currency component of the money stock plus, for institutions not having required
reserve balances, the excess o f current vault cash over the amount applied to
satisfy current reserve requirements. After the introduction of contemporaneous
reserve requirements (CRR), currency and vault cash figures are measured over
the weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock plus the remaining items seasonally
adjusted as a whole.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits
at all commercial banks other than those due to domestic banks, the U.S.
government, and foreign banks and official institutions less cash items in the
process of collection and Federal Reserve float; and (4) other checkable deposits
(OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer
service (ATS) accounts at depository institutions, credit union share draft
accounts, and demand deposits at thrift institutions. The currency and demand
deposit components exclude the estimated amount of vault cash and demand
deposits respectively held by thrift institutions to service their OCD liabilities.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, MMDAs, savings and smalldenomination time deposits (time deposits—including retail RPs—in amounts of
less than $100,000), and balances in both taxable and tax-exempt general purpose
and broker/dealer money market mutual funds. Excludes individual retirement
accounts (IRA) and Keogh balances at depository institutions and money market
funds. Also excludes all balances held by U.S. commercial banks, money market
7.5'
funds (general purpose and broker/dealer), foreign governments and commercial
banks, and the U.S. government. Also subtracted is a consolidation adjustment
that represents the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposits.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted is
a consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are on an end-of-month basis. Growth rates for debt reflect adjustments for
discontinuities over time in the levels of debt presented in other tables.
5. Sum of overnight RPs and Eurodollars, money market fund balances
(general purpose and broker/dealer), MMDAs, and savings and small time
deposits less the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposit liabilities.
6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents,
money market fund balances (institution-only), less a consolidation adjustment
that represents the estimated amount of overnight RPs and Eurodollars held by
institution-only money market mutual funds.
7. Excludes MMDAs.
8. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All IRA and Keogh accounts at commercial
banks and thrifts are subtracted from small time deposits.
9. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
10. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
11. Changes calculated from figures shown in table 1.23. Beginning December
1981, growth rates reflect shifts of foreign loans and securities from U.S. banking
offices to international banking facilities.
A4
DomesticNonfinancialStatistics • July 1984
1.11
RESERVE BALANCES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1984
1984
Factors
Apr.
May
June
174,232'
173,797
175,398
174,875
169,162
172,199
174,301
174,525
176,524
176,728
154,226
152,859
1,367
8,660
8,557
103
87
1,285
756'
9,219
11,110
4,618
15,949'
152,987
152,313
674
8,571
8,527
44
50
2,964
524
8,701
11,106
4,618
16,018
154,500
153,354
1,146
8,602
8,503
99
106
3,166
594
8,430
11,103
4,618
16,082
152,606
152,606
0
8,516
8,516
0
0
4,613
11
9,129
11,107
4,618
16,013
148,520
148,520
0
8,516
8,516
0
0
3,746
439
7,941
11,106
4,618
16,024
152,195
152,195
0
8,515
8,515
0
0
3,008
394
8,088
11,104
4,618
16,037
153,849
152,800
1,049
8,583
8,509
74
82
3,131
581
8,075
11,104
4,618
16,055
154,735
154,383
352
8,534
8,502
32
18
2,508
470
8,260
11,104
4,618
16,070
155,037
153,350
1,687
8,612
8,501
111
175
3,421
754
8,525
11,104
4,618
16,085
155,132
152,863
2,269
8,756
8,501
255
241
2,973
964
8,661
11,103
4,618
16,100
170,426'
523'
172,013
544
174,218
531
172,168
546
177,825
548
172,653
544
173,742
537
174,414
535
174,275
530
174,021
527
6,637
220
1,482'
4,960
241
1,456
3,894
244
1,388
3,521
230
1,380
4,020
237
1,599
3,332
274
1,304
4,704
241
1,285
3,311
234
1,318
4,081
269
1,434
3,401
236
1,427
May 16
May 23
May 30
June 6
June 13
June 20
June 27
SUPPLYING RESERVE F U N D S
1 Reserve Bank credit
2
U.S. government securities'
3
Bought outright
4
Held under repurchase a g r e e m e n t s . . . .
5
Federal agency obligations
6
Bought outright
7
Held under repurchase a g r e e m e n t s . . . .
8
Acceptances
9
Loans
10
Float
11
Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account
14 Treasury currency outstanding
ABSORBING RESERVE F U N D S
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17
Treasury
18
Foreign
19 Service-related balances and adjustments
20
Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks 2
394
487
439
511
441
436
513
394
489
359
6,098
5,874
6,214
5,777
5,915
5,885
5,889
5,849
6,222
6,946
20,129'
19,964
20,272
22,479
16,324
19,531
19,167
20,261
21,030
21,632
End-of-month figures
Wednesday figures
1984
1984
Apr.
May
June
182,683
175,753
175,051
171,598
171,438
174,565
174,725
173,197
181,880
173,877
162,134
155,042
7,092
8,982
8,556
426
305
907
609
9,746
154,869
151,745
3,124
8,851
8,515
336
426
2,832
588
8,187
152,859
152,859
0
8,501
8,501
0
0
4,760
-655
9,586
149,417
149,417
0
8,516
8,516
0
0
5,459
221
7,985
151,148
151,148
0
8,516
8,516
0
0
3,225
432
8,117
153,697
153,697
0
8,515
8,515
0
0
2,703
1,390
8,260
152,791
152,791
0
8,502
8,502
0
0
4,387
752
8,293
153,635
153,635
0
8,501
8,501
0
0
2,404
212
8,445
158,583
153,182
5,401
8,872
8,501
371
619
4,394
590
8,822
152,907
152,907
0
8,501
8,501
0
0
3,332
352
8,785
11,109
4,618
15,987'
11,104
4,618
16,053
11,100
4,618
16,113
11,107
4,618
16,022
11,104
4,618
16,035
11,104
4,618
16,047
11,104
4,618
16,068
11,104
4,618
16,083
11,103
4,618
16,098
11,100
4,618
16,113
170,345'
547'
173,803
534
175,070
523
172,187
549
172,097
544
173,562
542
174,228
532
174,603
530
174,114
528
174,441
523
16,729
345
1,134'
4,855
295
1,148
4,397
237
1,148
5,0%
229
1,136
2,594
212
1,136
6,306
292
1,148
3,458
206
1,148
3,524
251
1,150
2,922
179
1,150
3,533
243
1,149
May 16
May 23
May 30
June 6
June 13
June 20
June 27
SUPPLYING RESERVE F U N D S
23 Reserve Bank credit
24
25
26
27
28
29
30
31
32
33
U.S. government securities 1
Bought outright
Held under repurchase a g r e e m e n t s . . . .
Federal agency obligations
Bought outright
Held under repurchase a g r e e m e n t s . . . .
Acceptances
Loans
Float
Other Federal Reserve assets
34 Gold stock
35 Special drawing rights certificate account
36 Treasury currency outstanding
...
ABSORBING RESERVE F U N D S
37 Currency in circulation
38 Treasury cash holdings
Deposits, other than reserve balances with
Federal Reserve Banks
39
Treasury
40
Foreign
41 Service-related balances and adjustments
42
Other
43 Other Federal Reserve liabilities and
capital
44 Reserve balances with Federal
Reserve Banks 2
324
416
432
493
407
425
378
342
405
310
6,391
5,939
5,971
5,563
5,750
5,715
5,658
5,752
6,240
5,942
18,581'
20,538
19,104
18,092
20,455
18,344
20,906
18,849
28,161
19,567
I. 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. Excl&des required clearing balances and adjustments to compensate for
float.
NOTE. 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
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks'
Total vault cash 2
Vault cash used to satisfy reserve requirements 3 .
Surplus vault cash 4
Total reserves 5
Required reserves
Excess reserve balances at Reserve Banks 6
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks 7
1984
1981
1982
1983
Dec.
Dec.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
26,163
19,538
15,755
3,783
41,918
41,606
312
642
53
149
24,804
20,392
17,049
3,343
41,853
41,353
500
697
33
187
20,943
20,558
17,201
3,357
38,144
37,615
529
912
119
6
20,986
20,755
17,908
2,847
38,894
38,333
561
745
96
2
21,325
22,578
18,795
3,782
40,120
39,507
613
715
86
4
18,414
22,269
17,951
4,318
36,365
35,423
942
567
103
5
19,484
20,396
16,794
3,602
36,278
35,569
709
952
133
27
20,351
20,152
16,802
3,349
37,154
36,664
490
1,234
139
44
19,560
20,446
16,960
3,486
36,519
35,942
577
2,988
196
37
20,278
20,770
17,297
3,472
37,575
36,712
863
3,300
264
1,873
Biweekly averages of daily figures for weeks ending
1984
11
12
13
14
15
16
17
18
19
20
Reserve balances with Reserve Banks'
Total vault cash 2
Vault cash used to satisfy reserve requirements 3 .
Surplus vault cash 4
Total reserves 5
Required reserves
Excess reserve balances at Reserve Banks 6
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks 7
Feb. 29
Mar. 14
Mar. 28
Apr. 11
Apr. 25
May 9
May 23
June 6
June 20P
July 4P
18,212
21,750
17,452
4,298
35,664
34,943
721
571
116
7
19,948
19,980
16,458
3,552
36,406
35,635
770
689
118
21
18,859
20,938
17,188
3,750
36,047
35,322
725
1,136
149
30
20,237
19,803
16,520
3,282
36,758
36,413
344
1,313
131
36
20,556
20,476
17,103
3,373
37,659
37,091
568
1,232
138
44
20,029
20,010
16,582
3,429
36,611
36,019
592
1,064
159
61
19,390
20,655
17,167
3,489
36,556
35,937
620
4,180
195
34
19,329
20,570
17,023
3,547
36,352
35,865
487
3,070
239
16
20,619
20,604
17,280
3,324
37,899
37,143
756
2,965
257
1,974
20,372
21,121
17,486
3,635
37,857
36,617
1,240
3,909
289
2,846
1. Excludes required clearing balances and adjustments to compensate for
float.
2. Dates refer to the maintenance periods in which the vault cash can be used to
satisfy reserve requirements. Under contemporaneous reserve requirements,
maintenance periods end 30 days after the lagged computation periods in which
the balances are held.
3. Equal to all vault cash held during the lagged computation period by
institutions having required reserve balances at Federal Reserve Banks plus the
amount of vault cash equal to required reserves during the maintenance period at
institutions having no required reserve balances.
4. Total vault cash at institutions having no required reserve balances less the
amount of vault cash equal to their required reserves during the maintenance
period.
5. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
1.13
adjustments to compensate for float, plus vault cash used to satisfy reserve
requirements. Such vault cash consists of all vault cash held during the lagged
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required reserves.
7. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
FEDERAL FUNDS A N D REPURCHASE AGREEMENTS
Averages of daily figures, in millions of dollars
Large Member Banks1
1984 week ending Monday
By maturity and source
Apr. 30
One day and continuing
contract
1 Commercial banks in United States
2 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies .
3 Nonbank securities dealers
4 All other
All other maturities
5 Commercial banks in United States
6 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies .
7 Nonbank securities dealers
8 All other
MEMO: Federal funds and resale agreement loans in
maturities of one day or continuing contract
9 Commercial banks in United States
10 Nonbank securities dealers
1. Banks with assets of $1 billion or more as of Dec. 31, 1977.
May 7
May 14
May 21
May 28
June 4
June 11
June 18
June 25
53,458
59,973
57,642'
58,637'
57,887
61,315
66,186
61,024
57,342
20,606
6,106
25,893
21,749
5,791
26,181
22,804
6,016
26,133
21,164
6,493
26,775
22,206
7,057
25,006
22,309
6,043
27,514
23,296
5,553
25,275
21,313
4,893
25,176
21,271
4,916
24,743
8,285
8,237
8,688
9,739
10,303
9,870
9,790
9,604
9,647
11,598
8,632
9,164
12,116
8,542
9,3%
12,375
8,036
9,823
12,642
7,379'
10,504
12,647
7,951
10,030
12,309
7,498
8,835
11,921
6,770
9,207
11,770
6,720
9,294
12,247
6,895
8,957
21,468
5,617
23,192
7,069
22,907
5,876
25,140'
5,686
24,345'
5,488
27,458
5,938
28,633
4,971
27,140
4,951
24,389
4,845
A6
DomesticNonfinancialStatistics • July 1984
1.14
FEDERAL RESERVE BANK INTEREST RATES
Percent per annum
Current and previous levels
Extended credit 1
Short-term adjustment credit
and seasonal credit
Federal Reserve
Bank
Rate o n
6/30/84
Boston
N e w York
Philadelphia
Cleveland
Richmond
Atlanta
9
Chicago
St. Louis
Minneapolis
Kansas City . . . .
Dallas
San F r a n c i s c o . . .
9
First 60 days
of borrowing
Previous
rate
Effective
date
4/9/84
4/9/84
4/9/84
4/10/84
4/9/84
4/10/84
8>/>
4/9/84
4/9/84
4/9/84
4/13/84
4/9/84
4/13/84
81/2
Rate on
6/30/84
N e x t 90 days
of borrowing
Previous
rate
Rate on
6/30/84
8'/i
10
9
9
Range of rates in recent years
Effective date
In effect D e c . 31, 1973
1974— Apr. 25
30
Dec. 9
16
1975— Jan.
6
10
24
Feb. 5
7
Mar. 10
14
May 16
23
1976— Jan.
19
23
N o v . 22
26
1977— Aug. 30
31
Sept. 2
Oct. 26
1978— Jan.
9
20
May 11
12
Range(or
level)—
All F . R .
Banks
F.R.
Bank
of
N.Y.
7'/2
7>/2-8
71/2
8
73/4-8
73/4
73/4
7 3 /4
7'A-7 3 /4
73/4
7'/4-73/4
7 !/4
63/4-7!/4
63/4
6!/4-63/4
6>/4
6-6'/4
6
5'/2-6
51/2
5 ' / 4 - 5 '/i
51/4
5'/4-53/4
5'/4-53/4
53/4
6
6-6 »/2
6'/2
6'/>-7
7
71/4
71/4
6%
63/4
6'/4
6'/4
6
6
5l/2
SVi
Effective date
1978— July
3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
%-m
81/2
8l/2-9>/2
91/2
Previous
rate
11
10'/!
9 Vi
9l/l
11
1 9 7 9 — J u l y 20
Aug. 17
20
Sept. 19
21
Oct.
8
10
1980—Feb.
5W
May
51/4
June
51/4
5 3 /4
5 3 /4
July
6
6 Vi
6>/i
7
7
Sept.
Nov.
Dec.
15
19
29
30
13
16
28
29
26
17
5
10
10-10'/!
101/!
lO'/i-l 1
11
11-12
12
12-13
13
12-13
12
11-12
11
10-11
10
11
12
12-13
13
4/9/84
4/9/84
4/9/84
4/10/84
4/9/84
4/10/84
4/9/84
4/9/84
4/9/84
4/13/84
4/9/84
4/13/84
10 >/i
2
Range (or
level)—
All F.R.
Banks
7-7'/4
71/4
73/4
8
Effective date
for current rates
Rate on
6/30/84
F.R.
Bank
of
N.Y.
71/4
71/4
73/4
8
8'/!
8'/!
9 Vi
91/2
Effective date
10
10'/!
10'/!
11
11
12
12
13
13
13
12
11
11
10
10
11
12
13
13
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
5
8
2
6
4
13-14
14
13-14
13
12
20
23
2
3
16
27
30
Oct. 12
13
N o v . 22
26
D e c . 14
15
17
11V2-12
ll</2
i m
Ul/2
11-11'/!
11
10^!
10-101/2
10
9^-10
9'/!
9-91/2
9
8'/:-9
8>/>-9
8V2
11
u
10'/!
10
10
1981— May
Nov.
Dec.
1982— July
Aug.
1. Applicable to advances w h e n exceptional circumstances or practices involve
only a particular depository institution and to advances w h e n an institution is
under sustained liquidity pressures. S e e section 201.3(b)(2) of Regulation A.
2. Rates for short-term adjustment credit. For description and earlier data s e e
the following publications of the Board of Governors: Banking and
Monetary
Statistics,
1914-1941, and 1941-1970; Annual Statistical Digest, 1970-1979,
1980,
1981, and 1982.
Previous
rate
10
m
After 150 d a y s
1984— Apr.
9
13
In effect June 30, 1984
14
14
13
13
12
9lA
9l/2
9
9
9
m
8'/!
9
9
9
9
9
8>A-9
In 1980 and 1981, the Federal R e s e r v e applied a surcharge to short-term
adjustment credit borrowings by institutions with deposits of $500 million or more
that had borrowed in s u c c e s s i v e w e e k s or in more than 4 w e e k s in a calendar
quarter. A 3 percent surcharge w a s in effect from Mar. 17, 1980, through May 7,
1980. There w a s no surcharge until N o v . 17, 1980, when a 2 percent surcharge was
adopted; the surcharge was subsequently raised to 3 percent o n D e c . 5, 1980, and
to 4 percent on May 5, 1981. T h e surcharge w a s reduced to 3 percent effective
Sept. 22, 1981, and to 2 percent effective Oct. 12. A s of Oct. 1, the formula for
applying the surcharge w a s changed from a calendar quarter t o a moving 13-week
period. The surcharge was eliminated o n N o v . 17, 1981.
Policy Instruments
1.15
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS'
Percent of deposits
Type of deposit, and
deposit interval
Member bank requirements
before implementation of the
Monetary Control Act
Percent
Net
A7
7
9 Yi
113/4
123/4
16'/4
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
savings2-*
Time 4
$0 million-$5 million, by maturity
30-179 days
180 days to 4 years
4 years or more
Over $5 million, by maturity
30-179 days
180 days to 4 years
4 years or more
3
3
12
12/29/83
12/29/83
Nonpersonal time deposits
By original maturity
Less than IV2 years
V/2 years or more
3
0
10/6/83
10/6/83
Eurocurrency
All types
3
11/13/80
Net transaction
accounts '
$0-$28.9 million
Over $28.9 million
9
3/16/67
3
2W
I
3/16/67
1/8/76
10/30/75
6
2'/!
1
12/12/74
1/8/76
10/30/75
1. For changes in reserve requirements beginning 1963, see Board's Annual
Statistical Digest, 1971-1975, and for prior changes, see Board's Annual Report
for 1976, table 13. Under provisions of the Monetary Control Act, depository
institutions include commercial banks, mutual savings banks, savings and loan
associations, credit unions, agencies and branches of foreign banks, and Edge Act
corporations.
2. Requirement schedules are graduated, and each deposit interval applies to
that part of the deposits of each bank. Demand deposits subject to reserve
requirements were gross demand deposits minus cash items in process of
collection and demand balances due from domestic banks.
The Federal Reserve Act as amended through 1978 specified different ranges of
requirements for reserve city banks and for other banks. Reserve cities were
designated under a criterion adopted effective Nov. 9, 1972, by which a bank
having net demand deposits of more than $400 million was considered to have the
character of business of a reserve city bank. The presence of the head office of
such a bank constituted designation of that place as a reserve city. Cities in which
there were Federal Reserve Banks or branches were also reserve cities. Any
banks having net demand deposits of $400 million or less were considered to have
the character of business of banks outside of reserve cities and were permitted to
maintain reserves at ratios set for banks not in reserve cities.
Effective Aug. 24, 1978, the Regulation M reserve requirements on net balances
due from domestic banks to their foreign branches and on deposits that foreign
branches lend to U.S. residents were reduced to zero from 4 percent and 1 percent
respectively. The Regulation D reserve requirement of borrowings from unrelated
banks abroad was also reduced to zero from 4 percent.
Effective with the reserve computation period beginning Nov. 16, 1978,
domestic deposits of Edge corporations were subject to the same reserve
requirements as deposits of member banks.
3. Negotiable order of withdrawal (NOW) accounts and time deposits such as
Christmas and vacation club accounts were subject to the same requirements as
savings deposits.
The average reserve requirement on savings and other time deposits before
implementation of the Monetary Control Act had to be at least 3 percent, the
minimum specified by law.
4. Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent
was imposed on large time deposits of $100,000 or more, obligations of affiliates,
and ineligible acceptances. This supplementary requirement was eliminated with
the maintenance period beginning July 24, 1980.
Effective with the reserve maintenance period beginning Oct. 25, 1979, a
marginal reserve requirement of 8 percent was added to managed liabilities in
excess of a base amount. This marginal requirement was increased to 10 percent
beginning Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and
was eliminated beginning July 24, 1980. Managed liabilities are defined as large
time deposits, Eurodollar borrowings, repurchase agreements against U.S.
government and federal agency securities, federal funds borrowings from nonmember institutions, and certain other obligations. In general, the base for the
marginal reserve requirement was originally the greater of (a) $100 million or (b)
the average amount of the managed liabilities held by a member bank, Edge
corporation, or family of U.S. branches and agencies of a foreign bank for the two
reserve computation periods ending Sept. 26, 1979. For the computation period
beginning Mar. 20, 1980, the base was lowered by (a) 7 percent or (b) the decrease
in an institution's U.S. office gross loans to foreigners and gross balances due
from foreign offices of other institutions between the base period (Sept. 13-26,
1979) and the week ending Mar. 12, 1980, whichever was greater. For the
computation period beginning May 29, 1980, the base was increased by l x h
percent above the base used to calculate the marginal reserve in the statement
week of May 14-21, 1980. In addition, beginning Mar. 19, 1980, the base was
reduced to the extent that foreign loans and balances declined.
Effective date
7 8
demand
Time and
Savings
Depository institution requirements
after implementation of the
Monetary Control Act 6
Percent
Effective date
2
$10 million-$100 million
$100 million-$400 million
Over $400 million
Type of deposit, and
deposit interval 5
liabilities
5. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 97320) provides that $2 million of reservable liabilities (transaction accounts,
nonpersonal time deposits, and Eurocurrency liabilities) of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the next succeeding calendar year by 80 percent of the
percentage increase in the total reservable liabilities of all depository institutions,
measured on an annual basis as of June 30. N o corresponding adjustment is to be
made in the event of a decrease. Effective Dec. 9, 1982, the amount of the
exemption was established at $2.1 million. Effective with the reserve maintenance
period beginning Jan. 12, 1984, the amount of the exemption is $2.2 million. In
determining the reserve requirements of a depository institution, the exemption
shall apply in the following order: (1) nonpersonal money market deposit accounts
(MMDAs) authorized under 12 CFR section 1204.122; (2) net NOW accounts
(NOW accounts less allowable deductions); (3) net other transaction accounts;
and (4) nonpersonal time deposits or Eurocurrency liabilities starting with those
with the highest reserve ratio. With respect to NOW accounts and other
transaction accounts, the exemption applies only to such accounts that would be
subject to a 3 percent reserve requirement.
6. For nonmember banks and thrift institutions that were not members of the
Federal Reserve System on or after July 1, 1979, a phase-in period ends Sept. 3,
1987. For banks that were members on or after July 1, 1979, but withdrew on or
before Mar. 31, 1980, the phase-in period established by Public Law 97-320 ends
on Oct. 24, 1985. For existing member banks the phase-in period of about three
years was completed on Feb. 2, 1984. All new institutions will have a two-year
phase-in beginning with the date that they open for business, except for those
institutions that have total reservable liabilities of $50 million or more.
7. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers (in excess
of three per month) for the purpose of making payments to third persons or others.
However, MMDAs and similar accounts offered by institutions not subject to the
rules of the Depository Institutions Deregulation Committee (DIDC) that permit
no more than six preauthorized, automatic, or other transfers per month of which
no more than three can be checks—are not transaction accounts (such accounts
are savings deposits subject to time deposit reserve requirements.)
8. The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage increase in transaction accounts held by
all depository institutions determined as of June 30 each year. Effective Dec. 31,
1981, the amount was increased accordingly from $25 million to $26 million; and
effective Dec. 30, 1982, to $26.3 million; and effective Dec. 29, 1983, to $28.9
million.
9. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which a beneficial interest is
held by a depositor that is not a natural person. Also included are certain
transferable time deposits held by natural persons, and certain obligations issued
to depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.
NOTE. Required reserves must be held in the form of deposits with Federal
Reserve Banks or vault cash. Nonmembers may maintain reserve balances with a
Federal Reserve Bank indirectly on a pass-through basis with certain approved
institutions.
A8
DomesticNonfinancialStatistics • July 1984
1.16
MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions'
Percent per annum
Type of deposit
Commercial banks
Savings and loan associations and
mutual savings banks (thrift institutions) 1
In effect June 30, 1984
In effect June 30, 1984
Percent
1
2
3
4
Savings
Negotiable order of withdrawal accounts
Negotiable order of withdrawal accounts of $2,500 or more 2
Money market deposit account 2
Time accounts by maturity
5 7-31 days of less than $2,500 4
6 7-31 days of $2,500 or more 2
7 More than 31 days
1. Effective Oct. 1, 1983, restrictions on the maximum rates of interest payable
by commercial banks and thrift institutions on various categories of deposits were
removed. For information regarding previous interest rate ceilings on all categories of accounts see earlier issues of the FEDERAL RESERVE BULLETIN, the
Federal Home Loan Bank Board Journal, and the Annual Report of the Federal
Deposit Insurance Corporation before November 1983.
2. Effective Dec. 1, 1983, IRA/Keogh (HR10) Plan accounts are not subject to
minimum deposit requirements.
3. Effective Dec. 14, 1982, depository institutions are authorized to offer a new
account with a required initial balance of $2,500 and an average maintenance
balance of $2,500 not subject to interest rate restrictions. N o minimum maturity
5 Vi
5Vi
51/2
Effective date
1/1/84
12/31/80
1/5/83
12/14/82
1/1/84
1/5/83
10/1/83
Percent
51/2
5'A
5'/5
Effective date
7/1/79
12/31/80
1/5/83
12/14/82
9/1/82
1/5/83
10/1/83
period is required for this account, but depository institutions must reserve the
right to require seven days notice before withdrawals. When the average balance
is less than $2,500, the account is subject to the maximum ceiling rate of interest
for NOW accounts; compliance with the average balance requirement may be
determined over a period of one month. Depository institutions may not guarantee
a rate of interest for this account for a period longer than one month or condition
the payment of a rate on a requirement that the funds remain on deposit for longer
than one month.
4. Deposits of less than $2,500 issued to governmental units continue to be
subject to an interest rate ceiling of 8 percent.
Policy Instruments
1.17
A9
FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1984
1983
Type of transaction
1981
1982
1983
Nov.
Feb.
Jan.
Dec.
Mar.
May
Apr.
U . S . G O V E R N M E N T SECURITIES
Outright transactions (excluding matched
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
13,899
6,746
0
1,816
17,067
8,369
0
3,000
18,888
3,420
0
2,400
1,435
0
0
700
3,695
0
0
0
0
1,967
0
1,300
368
828
0
600
3,159
0
0
0
3,283
0
0
3,283
610
2,003
0
2,200
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
317
23
13,794
-12,869
0
312
0
17,295
-14,164
0
484
0
18,887
-16,553
87
155
0
2,828
-2,930
0
0
0
915
0
0
0
0
573
1,530
0
0
0
-2,488
-4,574
0
0
0
1,012
0
0
198
0
347
-2,223
0
0
0
2,739
-1,807
0
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,702
0
-10,299
10,117
1,797
0
-14,524
11,804
1,896
0
-15,533
11,641
820
0
-1,684
1,796
0
0
-915
0
0
0
-487
1,530
0
0
2,488
2,861
0
0
-1,012
0
808
0
-273
2,223
0
0
-2,279
1,150
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
393
0
-3,495
1,500
388
0
-2,172
2,128
890
0
-2,450
2,950
349
0
-250
700
0
0
0
0
0
300
-86
0
0
0
97
1,000
0
0
0
0
200
0
-75
0
0
0
-383
400
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
379
0
0
1,253
307
0
-601
234
383
0
-904
1,962
151
0
-894
434
0
0
0
0
0
0
0
0
0
0
-97
713
0
0
0
0
277
0
0
0
0
0
-77
257
22
23
24
All maturities
Gross purchases
Gross sales
Redemptions
16,690
6,769
1,816
19,870
8,369
3,000
22,540
3,420
2,487
2,909
0
700
3,695
0
0
0
2,267
1,300
368
828
600
3,159
0
0
1,484
0
0
610
2,003
2,200
25
26
Matched transactions
Gross sales
Gross purchases
589,312
589,647
543,804
543,173
578,591
576,908
56,858
57,991
58,979
56,404
54,833
58,096
55,656
47,310
66,827
73,634
72,293
71,754
79,313
79,608
27
28
Repurchase agreements
Gross purchases
Gross sales
79,920
78,733
130,774
130,286
105,971
108,291
3,257
3,257
3,644
2,260
14,245
15,629
0
0
4,996
4,996
15,313
8,220
8,267
12,199
9,626
8,358
12,631
3,342
2,504
-1,688
-9,407
9,966
11,321
-7,228
494
0
108
0
0
189
0
0
292
0
0
84
0
0
2
0
0
40
0
0
38
0
0
10
0
0
2
0
0
40
13,320
13,576
18,957
18,638
8,833
9,213
497
497
634
426
931
1,139
0
0
609
609
1,247
820
616
744
130
130
-672
-84
206
-248
-38
-10
424
-169
36 Repurchase agreements, net
-582
1,285
-1,062
0
418
-418
0
0
305
122
37 Total net change in System Open Market
Account
9,175
9,773
10,897
3,258
3,128
-2,354
-9,444
9,956
12,050
-7,275
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
30
31
32
Outright transactions
Gross purchases
Gross sales
Redemptions
33
34
Repurchase agreements
Gross purchases
Gross sales
35 Net change in federal agency obligations
BANKERS ACCEPTANCES
NOTE: Sales, redemptions, and negative figures reduce holdings of the System
Open Market Account; all other figures increase such holdings. Details may not
add to totals because of rounding.
A10
1.18
DomesticNonfinancialStatistics • July 1984
FEDERAL RESERVE BANKS
Millions of dollars
Condition and Federal Reserve Note Statements
Account
May 30
June 6
Wednesday
End of month
1984
1984
June 20
June 13
June 27
Apr.
May
June
Consolidated condition statement
ASSETS
11,104
4,618
453
11,104
4,618
449
11,104
4,618
451
11,103
4,618
453
11,100
4,618
445
11,109
4,618
482
11,104
4,618
443
11,100
4,618
435
2,703
0
4,387
0
2,404
0
4,394
0
3,332
0
907
0
2,832
0
4,760
0
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4
To depository institutions
5
Other
Acceptances—Bought outright
6
Held under repurchase agreements
Federal agency obligations
7
Bought outright
8
Held under repurchase agreements
U.S. government securities
Bought outright
9
Bills
10
Notes
11
Bonds
12
Total bought outright1
13
Held under repurchase agreements
14 Total U.S. government securities
0
0
0
619
0
305
426
0
8,515
0
8,502
0
8,501
0
8,501
371
8,501
0
8,556
426
8,515
336
8,501
0
67,766
63,870
22,061
153,697
0
153,697
66,860
63,870
22,061
152,791
0
152,791
67,704
63,870
22,061
153,635
0
153,635
67,251
63,870
22,061
153,182
5,401
158,583
66,976
63,870
22,061
152,907
0
152,907
69,111
64,127
21,804
155,042
7,092
162,134
65,814
63,870
22,061
151,745
3,124
154,869
66,928
63,870
22,061
152,859
0
152,859
15 Total loans and securities
164,915
165,680
164,540
172,468
164,740
172,328
166,978
166,120
10,891
553
8,085
553
7,447
553
8,433
554
7,511
555
7,044
548
8,770
553
6,350
556
3,842
3,865
3,794
3,946
3,807
4,085
3,810
4,458
3,814
4,416
3,912
5,286
3,794
3,840
3,733
5,297
200,241
198,229
196,605
205,897
197,199
205,327
200,100
198,209
158,510
159,142
159,502
158,997
159,296
155,388
158,727
159,915
19,492
6,306
292
425
22,054
3,458
206
378
19,999
3,524
251
342
29,311
2,922
179
405
20,716
3,533
243
310
19,715
16,729
345
324
21,686
4,855
295
416
20,252
4,397
237
432
26,515
26,096
24,116
32,817
24,802
37,113
27,252
25,318
9,501
2,338
7,333
2,358
7,235
2,355
7,843
2,847
7,159
2,530
6,435
2,920
8,182
2,593
7,005
2,528
196,864
194,929
193,208
202,504
193,787
201,856
196,754
194,766
1,532
1,465
380
1,537
1,465
298
1,538
1,465
394
1,539
1,465
389
1,541
1,465
406
1,520
1,465
486
1,531
1,465
350
1,541
1,465
437
200,241
198,229
196,605
205,897
197,199
205,327
200,100
198,209
113,517
113,776
115,446
114,336
116,908
116,173
114,495
116,234
16 Cash items in process of collection
17 Bank premises
Other assets
18
Denominated in foreign currencies 2
19
All other 3
20 Total assets
LIABILITIES
21 Federal Reserve notes
Deposits
22
To depository institutions
23
U.S. Treasury—General account
24
Foreign—Official accounts
25
Other
26 Total deposits
27 Deferred availability cash items
28 Other liabilities and accrued dividends 4
29 Total liabilities
CAPITAL A C C O U N T S
30 Capital paid in
31 Surplus
32 Other capital accounts
33 Total liabilities and capital accounts
34 MEMO: Marketable U.S. government securities held in
custody for foreign and international account
Federal Reserve note statement
35 Federal Reserve notes outstanding
36
LESS: Held by bank 5
37
Federal Reserve notes, net
Collateral held against notes net:
38
Gold certificate account
39
Special drawing rights certificate account
40
Other eligible assets
41
U.S. government and agency securities . .
42 Total collateral
186,105
27,595
158,510
186,571
27,429
159,142
186,896
27,394
159,502
187,464
28,467
158,997
187,787
28,491
159,296
184,496
29.108
155,388
187,637
27,722
159,915
11,104
4,618
0
11,104
4,618
0
11,104
4,618
0
11,103
4,618
0
11,100
11.109
4,618
0
11,100
4,618
0
142,788
143,420
143,780
143,276
143,578
139,661
144,197
158,510
159,142
159,502
158,997
159,296
155,388
159,915
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Assets shown in this line are revalued monthly at market exchange rates.
3. Includes special investment account at Chicago of Treasury bills maturing
within 90 days.
4,618
0
4. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
5. Beginning September 1980, Federal Reserve notes held by the Reserve Bank
are exempt from the collateral requirement.
Reserve Banks; Banking Aggregates
1.19
FEDERAL RESERVE BANKS
Millions of dollars
All
Maturity Distribution of Loan and Security Holdings
Type and maturity groupings
Wednesday
End of month
1984
1984
June 29
June 6
June 13
June 20
June 27
1 Loans—Total
2
Within 15 days
3
16 days to 90 days
4
91 days to 1 year
2,703
2,660
43
0
4,387
4,255
132
0
2,404
2,229
175
0
4,394
4,363
31
0
3,332
3,294
38
0
907
864
43
0
2,832
2,764
68
0
4,760
4,674
86
0
5 Acceptances—Total
Within 15 days
6
7
16 days to 90 days
8
91 days to 1 year
0
0
0
0
0
0
0
0
0
0
0
0
619
619
0
0
0
0
0
0
305
305
0
0
426
426
0
0
0
0
0
0
153,697
9,551
30,785
44,706
35,228
14,339
19,088
152,791
8,705
30,918
44,603
35,138
14,339
19,088
153,635
8,600
33,726
42,744
35,138
14,339
19,088
158,583
12,340
32,922
44,756
35,138
14,339
19,088
152,907
7,687
31,614
45,041
35,138
14,339
19,088
162,134
10,462
35,614
46,562
36,267
14,322
18,907
154,869
7,751
30,922
47,631
35,138
14,339
19,088
152,859
5,129
34,053
45,112
35,138
14,339
19,088
8,515
159
559
1,638
4,421
1,339
399
8,502
86
640
1,646
4,392
1,339
399
8,501
108
653
1,604
4,436
1,301
399
8,872
597
535
1,604
4,436
1,301
399
8,501
159
519
1,647
4,476
1,301
399
8,982
561
635
1,657
4,409
1,321
399
8,851
495
559
1,638
4,421
1,339
399
8,501
159
519
1,647
4,476
1,301
399
9 U.S. government securities—Total
10
Within 15 days'
16 days to 90 days
11
91 days to 1 year
12
Over 1 year to 5 years
13
14
Over 5 years to 10 years
Over 10 years
15
16 Federal agency obligations—Total
17
Within 15 days 1
18
16 days to 90 days
19
91 days to 1 year
Over 1 year to 5 years
20
Over 5 years to 10 years
21
Over 10 years
22
April 30
May 31
May 30
1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.
A12
1.20
DomesticNonfinancialStatistics • July 1984
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE
Billions of dollars, averages of daily figures
-
1980
Dec.
1981
Dec.
1982
Dec.
1983
1983
Dec.
Nov.
Oct.
1 Total reserves 2
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3
Required reserves
Monetary base 4
Dec.
Jan.
Feb.
Mar.
Apr.
May
Seasonally adjusted
A D J U S T E D FOR
2
3
4
5
1984
30.64
31.51
33.63
35.28
35.32
35.25
35.28
35.50
36.07
36.10
36.1(K
36.43
28.95
28.95
30.13
150.11
30.88
31.03
31.20
157.82
33.00
33.18
33.13
169.81
34.51
34.51
34.72
184.97
34.47
34.73
34.81
182.85
34.34
34.35
34.72
183.95
34.51
34.51
34.72
184.97
34.79
34.79
34.89
186.94
35.50
35.50
35.12
188.58
35.15
35.18
35.40
188.72'
34.87
34.91'
35.61'
189.66'
33.44
33.48
35.85
191.26
Not seasonally adjusted
6 Total reserves 2
7
8
9
10
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3
Required reserves
Monetary base 4
31.34
32.23
34.35
36.00
35.31
35.35
36.00
37.30
35.65
35.63
36.46'
35.76
29.65
29.65
30.82
152.80
31.59
31.74
31.91
160.65
33.71
33.90
33.85
172.83
35.22
35.23
35.44
188.23
34.47
34.73
34.81
182.67
34.45
34.45
34.82
185.04
35.22
35.23
35.44
188.23
36.59
36.59
36.69
188.10
35.09
35.09
34.71
185.93
34.68
34.70
34.92
187.17'
35.23
35.28
35.97'
189.65'
32.78
32.81
35.19
190.33
40.66
41.93
41.85
38.89
38.14
38.14
38.89
40.12
36.37
36.28
37.15
36.52
38.97
38.97
40.15
163.00
41.29
41.44
41.61
170.47
41.22
41.41
41.35
180.52
38.12
38.12
38.33
192.36
37.29
37.55
37.63
186.60
37.24
37.25
37.62
188.97
38.12
38.12
38.33
192.36
39.41
39.41
39.51
192.30
35.80
35.80
35.42
186.67
35.33'
35.33
35.57
187.81
35.92
35.78
36.66
190.34'
33.53
33.83
35.94
191.02
N O T A D J U S T E D FOR
CHANGES IN RESERVE REQUIREMENTS 5
11 Total reserves 2
12
13
14
15
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3
Required reserves
Monetary base 4
1. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
2. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash used to satisfy reserve
requirements. Such vault cash consists of all vault cash held during the lagged
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
3. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
4. The monetary base not adjusted for discontinuities consists of total reserves
plus required clearing balances and adjustments to compensate for float at Federal
Reserve Banks and the currency component of the money stock less the amount
of vault cash holdings of thrift institutions that is included in the currency
component of the money stock plus, for institutions not having required reserve
balances, the excess of current vault cash over the amount applied to satisfy
current reserve requirements. After the introduction of contemporaneous reserve
requirements (CRR), currency and vault cash figures are measured over the
weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock and the remaining items seasonally
adjusted as a whole.
5. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated
with implementation of the Monetary Control Act or other regulatory changes to
reserve requirements.
NOTE. Latest monthly and biweekly figures are available from the Board's
H.3(502) statistical release. Historical data and estimates of the impact on
required reserves of changes in reserve requirements are available from the
Banking Section, Division of Research and Statistics, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
Monetary Aggregates
1.21
A13
MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Billions of dollars, averages of daily figures
1984
1980
Dec.
1981
Dec.
1982
Dec.
1983
Dec.
Feb.
Mar.
Apr.
May
535.4'
2,242.9'
2,791.1'
3,297.9
5,430.9
541.0
2,259.3
2,815,9
n.a.
n.a.
Seasonally adjusted
414.9
1,632.6
1,989.8
2,326.0
3,946.9
441.9
1,796.6
2,236.7
2,598.4
4,323.8
480.5
1,965.3
2,460.3
2,868.7
4,710.1
525.3
2,196.2'
2,706.7
3,176.9
5,203.9'
532.9
2,222.5'
2,744.8'
3,227.3'
5,317.2'
535.2'
2,230.0'
2,766.0'
3,269.5'
5,371.2'
116.7
4.2
266.5
27.6
124.0
4.3
236.2
77.4
134.1
4.3
239.7
102.4
148.0
4.9
243.7
128.8
150.2
5.0
243.8
133.8
150.9
5.0
244.0
135.3
151.8
5.1
245.3'
133.2'
152.9
5.1
245.2
137.8
1,217.7
357.2
1,354.6
440.2
1,484.8
495.0
l^O.y
510.6
522.3'
1,694.8'
536.0
1,707.5'
548.2'
1,718.3
556.5
Savings deposits 9
Commercial Banks
Thrift Institutions
185.9
215.6
159.7
186.1
164.9
197.2
134.6
178.2
130.1
176.5
128.9
176.6
128.6
176.8
128.2
177.0
14
15
Small denomination time deposits 9
Commerical Banks
Thrift Institutions
287.5
443.9
349.6
477.7
382.2
474.7
353.1
440.0
352.8
448.1
353.5
449.9
355.9'
452.4'
360.4
457.2
16
17
Money market mutual funds
General purpose and broker/dealer
Institution-only
61.6
15.0
150.6
36.2
185.2
48.4
138.2
40.3
142.1
41.6
144.8
41.8
146.1
41.8
146.6
42.0
18
19
Large denomination time deposits 1 0
Commercial Banks 11
Thrift Institutions
213.9
44.6
247.3
54.3
261.8
66.1
225.5
100.4
228.3
111.9
232.8'
115.5
236.3
119.4
243.5
123.4
20
21
Debt components
Federal debt
Non-federal debt
742.8
3,204.1
830.1
3,493.7
991.4
3,718.7
1,174.0'
4,029.9'
1,213.1'
4,104.0'
1,220.7'
4,150.5'
1,233.6
4,197.3
n.a.
n.a.
543.9
2,254.3
2,811.2
n.a.
n.a.
1
2
3
4
5
Ml
M2
M3
L
Debt 2
6
7
8
9
Ml components
Currency 2
Travelers checks 3
Demand deposits 4
Other checkable deposits 5
10
11
Nontransactions components
In M2 6
In M3 only 7
12
13
1,689.fr
Not seasonally adjusted
424.8
1,635.4
1,996.1
2,332.8
3,946.9
452.3
1,798.7
2,242.7
2,605.6
4,323.8
491.9
1,967.4
2,466.6
2,876.5
4,710.1
118.8
3.9
274.7
27.4
126.1
4.1
243.6
78.5
136.4
4.1
247.3
104.1
1,210.6
360.7
1,346.3
444.1
1,475.5
499.2
Money market deposit accounts
Commercial banks
Thrift institutions
n.a.
n.a.
n.a.
n.a.
35
36
Savings deposits 8
Commercial Banks
Thrift Institutions
183.8
214.4
37
38
Small denomination time deposits 9
Commercial Banks
Thrift Institutions
39
40
Money market mutual funds
General purpose and broker/dealer
Institution-only
41
42
Large denomination time deposits 1 0
Commercial Banks 11
Thrift Institutions
43
44
Debt components
Federal debt
Non-federal debt
22
23
24
25
26
Ml
M2
M3
L
Debt 2
27
28
29
30
Ml components
Currency 2
Travelers checks 3
Demand deposits 4
Other checkable deposits 5
31
32
Nontransactions components
M2 6
M3 only 7
33
34
For notes see bottom of next page.
537.8
2,198.0'
2,712.8
3,184.7
S.W.C
521.9
2,212.3'
2,737.5'
3,228.7'
5,301.7'
528.1
2,230.9'
2,767.2'
3,275.7'
5,352.7'
543.2'
2,254.7'
2,799.6'
3,309.4
5,408.3
150.5
4.6
251.6
131.2
148.3
4.7
237.9
130.9
149.8
4.8
239.4
134.1
151.5
4.8
247.8
139.0
1,660.2'
514.8
1,690.5'
525.2'
1,702.8'
536.3
1,711.5'
544.9'
26.3
16.6
230.0
145.9
238.3
147.7
242.6
149.9
245.3
151.0
244.3
150.4
157.5
184.7
162.1
195.5
132.0
176.5
129.9
175.3
130.2
177.0
130.5
178.0
129.9
178.0
286.0
442.3
347.7
475.6
380.1
472.4
351.0
437.6
355.4
450.0
356.0
451.6
356.4
454.3'
360.3
458.2
61.6
15.0
150.6
36.2
185.2
48.4
138.2
40.3
142.1
41.6
144.8
41.8
146.1
41.8
146.6
42.0
218.5
44.3
252.1
54.3
266.2
66.2
229.0
100.7
229.7
111.2
233.1
114.2
233.6'
118.0
241.4
122.9
742.8
3,204.1
830.1
3,943.7
991.4
3,718.7
1,170.2'
4,026.8'
1,210.7'
4,090.9'
1,223.6'
4,129.1'
1,235.9
4,172.4
152.9
5.0
241.3
135.7
1,719.4
556.9
n.a.
n.a.
A14
1.22
DomesticNonfinancialStatistics • July 1984
BANK D E B I T S A N D DEPOSIT T U R N O V E R
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1983
group, ur lype 01 customer
1981'
1982'
1984
19831
Dec.
1
2
3
4
5
6
7
8
9
10
Demand deposits 2
All insured banks
Major N e w York City banks
Other banks
ATS-NOW accounts 3
Savings deposits 4
11
12
13
14
15
16
Demand deposits 2
All insured banks
Major N e w York City banks
Other banks
A T S - N O W accounts 3
MMDA 5
Savings deposits 4
17
18
19
20
21
22
Demand deposits 2
All insured banks
Major N e w York City banks
Other banks
A T S - N O W accounts 3
MMDA 5
Savings deposits 4
Feb.
Mar.
Apr.
May
Seasonally adjusted
D E B I T S TO
Demand deposits 2
All insured banks
Major N e w York City banks
Other banks
ATS-NOW accounts 3
Savings deposits 4
Jan.
80,858.7
33,891.9
46,966.9
743.4
672.7
90,914.4
37,932.9
52,981.6
1,036.2
721.4
108,646.4
47,336.9
61,309.5
1,394.9
735.7
115,381.5
48,255.7
67,125.8
1,499.6
661.4
120,954.6
51,952.5
69,002.2
1,345.1
620.8
126,749.9
55,776.7
70,973.1
1,491.1
708.3
116,416.7
50,765.2
65,651.5
1,464.9
688.9
129,229.4
57,868.3
71,361.1
1,432.1
606.5
131,456.9
60,351.3
71,105.6
1,608.9
688.8
285.8
1,105.1
186.2
14.0
4.1
324.2
1,287.6
211.1
14.5
4.5
376.8
1,512.0
238.5
15.5
5.3
395.7
1,541.4
257.9
15.9
5.0
414.2
1,650.9
264.9
13.8
4.7
434.7
1,747.7
273.3
15.0
5.5
394.9
1,649.5
248.7
14.7
5.4
441.7
2,012.5
270.5
14.6
4.8
442.7
1,938.7
267.5
16.0
5.5
DEPOSIT T U R N O V E R
Not seasonally adjusted
D E B I T S TO
81,197.9
34,032.0
47,165.9
737.6
0
672.9
91,031.9
38,001.0
53,030.9
1,027.1
0
720.0
108,459.5
47,238.2
61,221.3
1,387.5
567.4
736.4
122,558.3
52,418.5
70,139.7
1,465.4
745.8
647.1
123,567.2
52,895.2
70,672.0
1,601.5
793.4
672.5
114,721.3
50,724.8
63,996.5
1,389.5
682.1
649.9
124,088.6
54,301.1
69,787.5
1,504.3
790.3
711.9
121,514.4
53,514.4
68,000.0
1,670.1
918.9
665.7
132,521.7
60,214.5
72,307.2
1,599.0
883.6
673.8
286.1
1,114.2
186.2
14.0
0
4.1
325.0
1,295.7
211.5
14.3
0
4.5
376.1
1,510.0
238.1
15.4
2.8
5.3
407.0
1,613.6
261.1
15.1
3.3
4.9
412.3
1,581.5
265.4
16.2
3.4
5.2
402.7
1,618.7
252.4
14.3
2.9
5.1
431.8
1,795.5
271.4
15.2
3.3
5.5
410.8
1,770.2
256.0
16.4
3.8
5.2
456.8
1,997.1
278.1
16.1
3.6
5.3
DEPOSIT TURNOVER
1. Annua) averages of monthly figures.
2. Represents accounts of individuals, partnerships, and corporations and of
states and political subdivisions.
3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts authorized for automatic transfer to demand deposits (ATS). ATS data
availability starts with December 1978.
4. Excludes ATS and NOW accounts, MMDA and special club accounts, such
as Christmas and vacation clubs.
5. Money market deposit accounts.
NOTE. Historical data for demand deposits are available back to 1970 estimated
in part from the debits series for 233 SMSAs that were available through June
1977. Historical data for A T S - N O W and savings deposits are available back to
July 1977. Back data are available on request from the Banking Section, Division
of Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
NOTES TO T A B L E 1.21
1. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits
at all commercial banks other than those due to domestic banks, the U.S.
government, and foreign banks and official institutions less cash items in the
process of collection and Federal Reserve float; and (4) other checkable deposits
(OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer
service (ATS) accounts at depository institutions, credit union share draft
accounts, and demand deposits at thrift institutions. The currency and demand
deposit components exclude the estimated amount of vault cash and demand
deposits respectively held by thrift institutions to service their OCD liabilities.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, MMDAs, savings and smalldenomination time deposits (time deposits—including retail RPs—in amounts of
less than $100,000), and balances in both taxable and tax-exempt general purpose
and broker/dealer money market mutual funds. Excludes individual retirement
accounts (IRA) and Keogh balances at depository institutions and money market
funds. Also excludes all balances held by U.S. commercial banks, money market
funds (general purpose and broker/dealer), foreign governments and commercial
banks, and the U.S. government. Also subtracted is a consolidation adjustment
that represents the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposits.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted is
a consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
FRASER
data are on an end-of-month basis.
Digitized for
2. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
commercial banks. Excludes the estimated amount of vault cash held by thrift
institutions to service their OCD liabilities.
3. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
4. Demand deposits at commercial banks and foreign-related institutions other
than those due to domestic banks, the U.S. government, and foreign banks and
official institutions less cash items in the process of collection and Federal
Reserve float. Excludes the estimated amount of demand deposits held at
commercial banks by thrift institutions to service their OCD liabilities.
5. Consists of NOW and ATS balances at all depository institutions, credit
union share draft balances, and demand deposits at thrift institutions. Other
checkable deposits seasonally adjusted equals the difference between the seasonally adjusted sum of demand deposits plus OCD and seasonally adjusted demand
deposits. Included are all ceiling free "Super N O W s , " authorized by the
Depository Institutions Deregulation committee to be offered beginning Jan. 5,
1983.
6. Sum of overnight RPs and overnight Eurodollars, money market fund
balances (general purpose and broker/dealer), MMDAs, and savings and small
time deposits, less the consolidation adjustment that represents the estimated
amount of demand deposits and vault cash held by thrift institutions to service
their time and savings deposits liabilities.
7. Sum of large time deposits, term RPs and term Eurodollars of U.S.
residents, money market fund balances (institution-only), less a consolidation
adjustment that represents the estimated amount of overnight RPs and Eurodollars held by institution-only money market funds.
8. Savings deposits exclude MMDAs.
9. Small-denomination time deposits—including retail RPs— are those issued
in amounts of less than $100,000. All individual retirement accounts (IRA) and
Keogh accounts at commercial banks and thrifts are subtracted from small time
deposits.
10. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
11. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
NOTE: Latest monthly and weekly figures are available from the Board's H.6
(508) release. Historical data are available from the Banking Section, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Commercial Banks
1.23
A15
LOANS A N D SECURITIES All Commercial Banks1
Billions of dollars; averages of Wednesday figures
1982
1983
Dec.
Dec.
1984
1982
1983
Dec.
Dec.
1984
Category
Feb.'
Mar/
Apr/
May
2 U.S. Treasury securities
3 Other securities
4 Total loans and leases 3
5
Commercial and industrial
loans
6
Real estate loans
7
Loans to individuals
8
Security loans
9
Loans to nonbank financial
institutions
10
Agricultural loans
11
Lease financing r e c e i v a b l e s . . .
12
All other loans
Mar.
Apr.'
May
Not seasonally adjusted
Seasonally adjusted
1 Total loans and securities 3
Feb.'
1,412.0
1,568.1
1,604.9
1,622.1
1,630.6
1,650.8
1,422.4
1,579.5
1,600.2
l,616.6 r
1,630.1
1,643.7
130.9
239.2
1,042.0
188.0
247.5
1,132.6
188.3
252.2
1,164.4
187.1
253.1
1,181.9
185.9
250.5
1,194.3
187.4
249.7
1,213.6
131.5
240.6
1,050.3
188.8
249.0
1,141.7
189.0
251.6
1,159.5
189.8
252.5'
1,174.2'
189.2
250.4
1,190.4
186.6
249.9
1,207.2
392.3
303.1
191.9
24.7
413.4
335.5
219.7
27.3
423.7
343.1
227.6
30.8
433.8
346.7
231.4
27.3
437.0
350.5
235.3
26.9
447.3
354.6
239.6
27.5
394.5
304.0
193.2
25.5
415.8
336.5
221.2
28.2
422.0
342.7
226.9
29.7
432.6
345.7
229.3'
26.5'
439.4
349.4
233.6
26.9
447.5
353.2
238.1
26.5
31.1
36.3
13.1
49.5
29.7
39.6
13.1
54.3
30.5
40.0
13.5
55.1
30.6
40.2
13.5
58.4
30.9
40.6
13.5
59.7
31.6
40.8
13.6
58.6
32.1
36.3
13.1
51.5
30.6
39.6
13.1
56.5
30.6
39.4
13.5
54.6
30.2
39.4
13.5
57.1'
30.7
39.9
13.5
57.1
31.3
40.6
13.6
56.4
1,415.0
1,570.5
1,607.4
1,625.2
1,633.8
1,653.6
1,425.4
1,581.8
1,602.7
1,619.7'
1,633.2
1,646.6
1,044.9
2.9
1,135.0
2.4
1,166.9
2.5
1,185.0
3.1
1,197.4
3.1
1,216.5
2.8
1,053.3
2.9
1,144.0
2.4
1,162.0
2.5
1,177.3'
3.1
1,193.6
3.1
1,210.1
2.8
394.5
415.3
425.6
435.8
438.9
449.3
396.8
417.7
423.8
434.5
441.3
449.4
2.3
8.5
1.8
8.3
1.9
8.5
1.9
9.4
1.9
9.6
2.0
9.9
2.3
9.5
1.8
9.1
1.9
8.6
1.9
9.0
1.9
8.8
2.0
9.3
383.7
373.4
10.3
13.5
405.2
395.1
10.1
12.7
415.2
403.2
12.1
13.2
424.4
412.2
12.2
12.8
427.4
415.4
12.0
13.0
437.4
424.6
12.8
12.7
385.1
372.6
12.4
14.5
406.8
394.3
12.5
13.6
413.3
401.3
12.0
13.0
430.6
418.7
11.8
12.5
438.2
426.4
11.7
12.2
MEMO
13 Total loans and securities plus
loans sold 3 ' 4
14 Total loans plus loans sold 3 ' 4 . . .
15 Total loans sold to affiliates 3 ' 4 ...
16 Commercial and industrial loans
plus loans sold 4
17
Commercial and industrial
loans sold 4
18
Acceptances held
19
Other commercial and industrial loans
20
To U.S. addressees 5
21
To non-U.S. a d d r e s s e e s . . . .
22 Loans to foreign banks
1. Includes domestically chartered banks; U.S. branches and agencies of
foreign banks, N e w York investment companies majority owned by foreign
banks, and Edge Act corporations owned by domestically chartered and foreign
banks.
2. Beginning December 1981, shifts of foreign loans and securities from U.S.
banking offices to international banking facilities (IBFs) reduced the levels of
several items. Seasonally adjusted data that include adjustments for the amounts
shifted from domestic offices to IBFs are available in the Board's G.7 (407)
statistical release (available from Publications Services, Board of Governors of
the Federal Reserve System, Washington, D.C. 20551).
3. Excludes loans to commercial banks in the United States.
423.6'
411.6
12.0
12.5
4. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
5. United States includes the 50 states and the District of Columbia.
NOTE. 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 foreignrelated 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
DomesticNonfinancialStatistics • July 1984
MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS'
Monthly averages, billions of dollars
1981
1982
Dec.
Dec.
1983
1984
source
1
2
3
4
5
6
Total nondeposit funds
Seasonally adjusted 2
Not seasonally adjusted
Federal funds, RPs, and other
borrowings from nonbanks 3
Seasonally adjusted
Not seasonally adjusted
Net balances due to foreign-related
institutions, not seasonally
adjusted
Loans sold to affiliates, not
seasonally adjusted 4
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.'
Feb.'
Mar.'
Apr.'
May
96.3
98.1
82.9
84.9
78.0'
78.7'
83.4'
86.2'
85.4'
86.5'
82.(K
83.0'
96.3'
99.fr
100.3
102.5'
98.2
99.2
102.4
103.8
108.1
109.6
111.8
113.0
116.8
121.1
111.8
113.5
127.7
129.7
134.4'
135.1'
132.7'
135.5'
134.2'
135.3'
135.2'
136.2'
140.8'
144.1'
140.7'
142.8'
139.4
140.4
143.0
144.4
141.8
143.3
142.3
143.5
142.4
146.7
-18.1
-47.7
-51.8'
-51.3'
-55.7'
2.8
2.9
-22.4
54.9
32.4
-39.6
72.2
32.6
4.3
48.1
52.4
-59.0
2.6
2.6
2.6
-50.8'
77.4
26.5
-45.2'
73.6
28.3
-46.3
74.7
28.3
-48.5
76.4
27.9
-8.1
54.7
46.6
-8.0
55.2
47.1'
-6.5'
53.6'
47.0
-5.C
53.5
48.5'
59.0
59.2
71.0
71.2
77.3
76.2
76.1
77.0
12.2
11.1
12.8
10.8
21.7
21.8
325.4
330.4
347.9
354.6
285.9
281.5
2.7
-47.0
-42.7
-43.7
-43.1
-36.8
-33.7
-28.4
2.5
2.4
2.4
2.5
3.1
3.1
2.8
MEMO
7 Domestically chartered banks' net
positions with own foreign
branches, not seasonally
adjusted 5
8
Gross due from balances
9
Gross due to balances
10 Foreign-related institutions' net
positions with directly related
institutions, not seasonally
adjusted 6
11
Gross due from balances
12
Gross due to balances
Security RP borrowings
13
Seasonally adjusted'
14
Not seasonally adjusted
U.S. Treasury demand balances 8
15
Seasonally adjusted
16
Not seasonally adjusted
Time deposits, $100,000 or more 9
17
Seasonally adjusted
18
Not seasonally adjusted
- 4 3 .C
76.5
33.6
-39.8'
75.3'
35.5
-38.8
73.2
34.5
-39.0
74.7
35.7
-34.9
73.8
38.8
-33.2
73.6
40.3
-29.9
73.5
43.6
-7.2'
55.5'
48.3'
-4.0'
53.5'
49.5'
-3.0
54.1'
51.1'
-4.9
53.5
48.6
-4.1
52.9
48.8
-1.9
50.1
48.2
-0.5
49.6
49.1
1.5
49.8
51.3
78.1
77.3
79.9
79.1
83.3
84.6
84.8
85.1
85.5
84.6
86.9
86.5
85.5
85.1
86.9
86.2
84.0
86.4
20.3
16.4
16.7
17.9
18.9
24.7
12.0
7.5
13.1
10.8
16.5
19.6
20.6
22.3
16.7
17.5
15.9
16.5
12.2
12.8
284.1
284.4
282.8
284.7
278.3
280.3
280.7
283.0
283.1
288.1
284.4
287.1
283.8
285.0
289.2
288.8
292.3
288.7
302.7
298.6
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, N e w
York investment companies majority owned by foreign banks, and Edge Act
corporations owned by domestically chartered and foreign banks.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates.
Includes averages of Wednesday data for domestically chartered banks and
averages of current and previous month-end data for foreign-related institutions.
3. Other borrowings are borrowings on any instrument, such as a promissory
note or due bill, given for the purpose of borrowing money for the banking
business. This includes borrowings from Federal Reserve Banks and from foreign
banks, term federal funds, overdrawn due from bank balances, loan RPs, and
participations in pooled loans. 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. Averages of daily figures for member and nonmember banks.
6. Averages of daily data.
7. Based on daily average data reported by 122 large banks.
8. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
9. Averages of Wednesday figures.
Banking Institutions
1.25
ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
A17
Last-Wednesday-of-Month Series
Billions of dollars except for number of banks
1983
1982
Dec.
Mar.
Apr.
June
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
DOMESTICALLY CHARTERED
COMMERCIAL B A N K S '
1
2
3
4
5
6
7
8
9
10
11
Loans and securities, excluding
interbank
Loans, excluding interbank
Commercial and industrial
Other
U.S. Treasury securities
Other securities
Cash assets, total
Currency and coin
Reserves with Federal Reserve Banks
Balances with depository institutions .
Cash items in process of collection . . .
1,370.3
1,000.7
356.7
644.0
129.0
240.5
1,392.2
1,001.7
358.0
643.7
150.6
239.9
1,403.8
1,005.1
357.9
647.2
155.5
243.3
1,411.9
1,007.5
356.7
650.8
160.9
243.5
1,435.1
1,025.6
360.1
665.6
166.0
243.5
1,437.4
1,029.1
361.1
668.0
165.1
243.3
1,457.0
1,043.4
363.0
680.4
167.5
246.1
1,466.1
1,049.7
364.0
685.7
171.2
245.2
1,483.0
1,060.3
367.0
693.3
176.8
245.9
1,502.3
1,075.5
372.8
702.7
180.4
246.4
1,525.2
1,095.1
380.8
714.4
181.4
248.7
184.4
23.0
25.4
67.6
68.4
168.9
19.9
20.5
67.1
61.5
170.1
20.4
23.9
66.1
59.6
164.5
20.3
22.4
65.6
56.3
176.9
21.3
18.8
69.7
67.1
168.7
20.7
20.6
67.1
60.3
176.9
21.0
22.5
69.0
64.4
160.0
20.8
15.4
66.7
56.9
164.0
20.5
19.7
67.1
56.6
179.0
22.3
17.6
70.9
69.0
190.5
23.3
18.6
75.6
73.0
12
Other assets 2
265.3
257.9
252.4
248.3
253.2
254.5
257.2
252.3
253.0
261.9
253.8
13
Total assets/total liabilities and capital . . .
1,820.0
1,818.9
1,826.3
1,824.8
1,865.2
1,860.6
1,891.0
1,878.4
1,900.0
1,943.9
1,969.5
14
15
16
17
Deposits
Demand
Savings
Time
1,361.8
363.9
296.4
701.5
1,374.2
333.4
419.2
621.6
1,368.0
329.2
426.9
611.9
1,370.8
324.5
440.2
606.1
1,402.7
344.4
445.3
613.1
1,396.5
334.2
447.5
614.8
1,420.1
344.7
449.0
626.4
1,408.1
328.1
448.8
631.2
1,419.5
331.3
451.5
636.8
1,459.2
358.1
458.3
642.8
1,482.6
371.0
460.7
650.8
18
19
20
Borrowings
Other liabilities
Residual (assets less liabilities)
215.1
109.2
133.8
211.3
103.5
130.0
224.0
102.3
132.0
214.1
104.7
135.1
221.2
104.3
137.0
217.5
105.5
141.0
217.2
107.6
146.1
217.8
107.1
145.4
226.8
106.5
147.2
219.7
112.6
152.4
216.3
117.9
152.8
10.7
14,787
9.6
14,819
17.8
14,823
2.7
14,817
19.3
14,826
19.3
14,785
14.8
14,795
20.8
14,804
22.5
14,800
2.8
14,799
8.8
14,796
1,429.7
1,054.8
395.3
659.5
132.8
242.1
1,451.3
1,054.5
395.9
658.6
155.3
241.5
1,460.8
1,055.7
393.5
662.2
160.2
244.9
1,467.6
1,056.4
391.7
664.7
166.1
245.2
1,491.5
1,075.2
395.3
679.9
171.3
245.1
1,494.1
1,078.8
397.7
681.2
170.3
245.0
1,515.4
1,094.9
400.6
694.3
172.7
247.8
1,525.4
1,102.5
402.7
699.8
176.1
246.9
1,541.8
1,112.2
405.3
706.8
182.0
247.7
1,563.2
1,129.2
412.0
717.2
185.9
248.1
1,586.8
1,149.3
420.1
729.2
186.9
250.6
200.7
23.0
26.8
81.4
69.4
185.5
19.9
22.0
81.0
62.6
186.3
20.4
25.4
79.8
60.7
180.3
20.3
23.8
78.9
57.3
193.5
21.3
20.0
84.0
68.2
185.2
20.7
21.9
81.2
61.4
193.3
21.1
24.0
82.8
65.4
174.7
20.9
16.6
79.3
58.0
178.4
20.5
20.8
79.5
57.6
195.0
22.3
19.1
83.6
70.0
205.0
23.4
19.7
88.0
74.0
MEMO
21
22
U.S. Treasury note balances included in
borrowing
Number of banks
A L L COMMERCIAL B A N K I N G
INSTITUTIONS 3
24
25
26
27
28
Loans and securities, excluding
interbank
Loans, excluding interbank
Commercial and industrial
Other
U.S. Treasury securities
Other securities
29
30
31
32
33
Cash assets, total
Currency and coin
Reserves with Federal Reserve Banks
Balances with depository institutions .
Cash items in process of collection . . .
34
Other assets 2
341.7
325.4
317.8
309.5
318.1
318.7
324.6
320.9
318.8
329.7
321.3
35
Total assets/total liabilities and capital . . .
1,972.1
1,962.2
1,964.9
1,957.4
2,003.2
1,998.0
2,033.3
2,021.0
2,039.1
2,088.0
2,113.1
36
37
38
39
Deposits
Demand
Savings
Time
1,409.7
376.2
296.7
736.7
1,419.5
345.7
419.7
654.1
1,411.0
341.1
427.3
642.6
1,413.1
336.4
440.7
636.0
1,443.8
356.4
445.7
641.6
1,438.1
346.4
448.0
643.8
1,461.4
356.6
449.5
655.3
1,448.9
340.0
449.3
659.5
1,459.0
343.2
452.0
663.8
1,499.4
369.9
458.8
670.6
1,524.8
383.2
461.3
680.4
40
41
42
Borrowings
Other liabilities
Residual (assets less liabilities)
278.3
148.4
135.7
269.9
141.1
131.9
281.3
138.6
133.9
269.5
137.9
137.0
278.2
142.3
138.9
277.9
139.1
142.9
280.5
143.4
148.0
282.6
142.3
147.3
289.6
141.5
149.1
282.5
151.9
154.2
275.1
158.6
154.7
10.7
15,329
9.6
15,376
17.8
15,390
2.7
15,385
19.3
15,396
19.3
15,359
14.8
15,370
20.8
15,382
22.5
15,383
2.8
15,382
8.8
15,380
23
MEMO
43
44
U.S. Treasury note balances included in
borrowing
Number of banks
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
corporations, and N e w York State foreign investment corporations.
NOTE. 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 estimates made on the last Wednesday of the
month based on a weekly reporting sample of foreign-related institutions and
quarter-end condition report data.
A18
1.26
DomesticNonfinancialStatistics • July 1984
ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1.4 Billion or More on
December 31, 1982, Assets and Liabilities
Millions of dollars, Wednesday figures
1984
Account
May 2
1 Cash and balances due from depository
institutions
2 Total loans, leases and securities, net
Securities
3 U.S. Treasury and government agency
4
Trading account
Investment account, by maturity
5
6
One year or less
7
Over one through five years
8
Over five years
9 Other securities
10
Trading account
11
Investment account
12
States and political subdivisions, by maturity
13
One year or less
14
Over one year
15
Other bonds, corporate stocks, and securities
16 Other trading account assets
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
Loans and leases
Federal funds sold 1
To commercial banks
To nonbank brokers and dealers in securities
To others
Other loans and leases, gross
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions.
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other
Lease financing receivables
LESS: Unearned income
Loan and lease reserve
Other loans and leases, net
All other assets
44 Total assets
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
Deposits
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits
(ATS, NOW, Super NOW, telephone transfers)..
Nontransaction balances
Individuals, partnerships and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Foreign governments, official institutions and banks . .
Liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money 2
Other liabilities and subordinated note and debentures
65 Total liabilities
66 Residual (total assets minus total liabilities) 3
May 9
93,873
90,176
755,804'
754,896'
77,977
11,522
66,455
18,129
35,622
12,704
50,394
6,090
44,304
40,155
4,850
35,305
4,149
2,751
42,471
27,896'
9,746'
4,829
596,941'
585,34(K
236,793'
3,547
233,246'
226,706'
6,540
148,413'
96,325'
41,282'
8,870
7,012
25,401'
13,872
7,517
22,583'
4,217'
14,337'
11,601'
May 23
May 3(K
June 6
June 13
June 20
June 27
91,476
86,033
%,546
87,590
86,757
%,991
87,402
756,678
756,074
760,223
765,046
757,888
763,422
758,255
75,966
9,887
66,079
17,578
35,764
12,738
49,734
5,467
44,268
40,115
4,808
35,307
4,153
2,435
75,670
10,266
65,404
17,098
35,879
12,427
49,308
5,055
44,253
40,066
4,758
35,309
4,186
1,960
75,140
10,284
64,855
16,695
35,746
12,414
49,005
4,592
44,413
40,196
4,782
35,413
4,218
1,882
76,834
11,797
65,037
17,071
35,684
12,283
48,892
4,462
44,430
40,250
4,830
35,420
4,180
1,932
75,000
9,934
65,067
17,486
35,423
12,158
48,785
4,658
44,128
40,145
4,798
35,347
3,982
2,292
73,596
8,932
64,664
16,916
35,551
12,198
48,385
4,336
44,049
40,099
4,675
35,424
3,950
2,261
72,234
7,749
64,485
16,892
35,462
12,130
47,466
4,002
43,464
39,811
4,439
35,372
3,653
2,265
72,167
7,630
64,537
16,521
35,665
12,350
47,405
4,113
43,291
39,647
4,432
35,215
3,644
2,256
9,670
582,211'
141,192'
45,551
31,640
8,827
5,083
596,012'
584,416'
239,225'
3,748
235,477'
228,932'
6,545
148,58C
96,317'
40,282'
7,976
6,5%
25,710'
12,059
7,612'
22,808'
4,234'
13,299'
l l ^
5,094'
9,709
581,209'
141,945
44,750
30,309'
9,213'
5,228
599,844'
588,231'
240,681'
3,629
237,052'
230,384'
6,668
148,897'
96,885'
41,329'
9,305
6,668
25,356'
12,484
7,604
22,709
4,201'
13,441'
11,613'
5,118'
9,736
584,990
142,068
44,484
30,278'
8,637'
5,568
600,503'
588,948'
240,531'
3,640
236,892'
230,186'
6,705
149,110'
97,168'
41,093'
9,264
6,630
25,198'
13,183'
7,604
22,862
4,038'
13,357'
11,555'
5,147'
9,792
585,564
136,555'
44,043
30,021
8,397
5,625
603,435
591,857
239,798
3,907
235,892
229,309
6,583
149,262
97,604
42,214
9,800
6,635
25,779
14,479
7,587
23,053
4,022
13,837
11,578
5,143
9,769
588,522
134,836
48,558
36,477
7,870
4,211
605,431
593,765
240,929
3,650
237,279
230,843
6,436
149,543
97,937
42,152
9,456
6,774
25,922
14,487
7,649
23,520
4,010
13,536
11,666
5,127
9,894
590,410
140,670
43,695
31,475
7,618
4,602
604,948
593,286
240,868
3,916
236,952
230,463
6,489
150,501
97,%7
41,618
9,737
6,363
25,518
13,841
7,718
23,668
4,050
13,054
11,662
5,118
9,879
589,951
137,689
48,661
35, %1
8,173
4,527
607,810
596,136
243,101
3,730
239,372
233,021
6,350
150,492
98,850
40,523
8,828
6,103
25,591
14,100
7,791
23,824
4,030
13,424
11,674
5,133
9,882
592,795
139,404
42,525
29,093
8,297
5,135
608,884
597,194
243,810
4,035
239,775
233,334
6,442
150,791
99,362
40,912
9,269
6,364
25,278
13,103
7,785
23,894
3,995
13,542
11,690
5,134
9,847
593,903
140,318
990,869'
987,017'
990,222
978,662'
991,605
993,307
982,335
999,817
985,975
185,550
140,884
5,854
1,307
22,118
6,272
948
8,166
174,058
133,822
4,424
1,068
20,364
6,106
857
7,418
187,606
141,986
4,867
2,463
22,509
6,263
1,088
8,430
172,574
132,751
4,526
2,076
19,522
6,014
792
6,892
185,051
140,804
4,623
1,076
22,562
6,585
845
8,557
180,246
137,820
4,669
1,879
21,132
6,355
791
7,600
180,272
140,526
4,261
1,366
19,869
5,772
798
7,681
180,524
136,733
5,041
4,066
21,348
5,618
816
6,901
177,565
135,144
4,694
2,320
20,828
6,226
788
7,565
33,236
414,606
385,469'
18,392
373'
7,060'
3,311
188,887'
170
16,781'
171,936'
101,926'
33,211
417,7%
388,313'
18,726
360'
7,176'
3,221
194,588'
2,078
13,823'
178,687'
100,445
32,984
420,440
390,066'
19,149
356'
7,343'
3,526
181,260
4,827
3,303
173,130'
101,080
32,408
424,671
393,353'
19,742
365
7,898'
3,314
180,249
2,416
563
177,270
101,488'
32,673
426,900
395,662
19,530
342
8,103
3,264
180,297
1,857
2,960
175,480
99,603
34,386
428,718
397,890
19,057
338
7,957
3,474
187,036
3,915
2,748
180,373
94,922
33,569
429,317
398,419
19,352
321
7,733
3,491
176,689
1,950
2,066
172,673
94,689
32,700
428,785
397,579
19,240
334
8,144
3,488
194,222
3,690
15,719
174,813
96,152
31,974
431,272
399,495
19,463
314
8,326
3,674
177,579
2,466
11,108
164,005
100,297
924,206'
920,099'
923,370
911,391'
924,525
925,308
914,537
932,384
918,688
66,663
66,917
67,080
67,999
67,797
67,433
67,287
1. Includes securities purchased under agreements to resell.
2. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
May 16
66,852
67,271
3. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses,
Weekly Reporting Banks
1.28
A19
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures
1984
Account
May 2
May 16
May 23
May 30
June 6
June 13
June 20
June 27
20,088
21,533
22,789
19,903
22,490
19,721
19,170
23,327
20,276
159,284'
159,760'
160,726
162,662
164,164
163,778
160,949
164,208
162,990
10,082
2,041
6,652
1,389
10,023
1,912
6,746
1,364
10,120
1,885
7,100
1,136
10,064
1,831
7,090
1,143
10,142
1,905
7,090
1,148
9,840
1,791
6,897
1,152
9,765
1,719
6,895
1,151
9,632
1,637
6,847
1,149
9,494
1,498
6,848
1,149
9,788
8,940
1,511
7,429
849
9,731
8,884
1,485
7,399
847
9,690
8,873
1,473
7,400
817
9,669
8,881
1,492
7,389
788
9,699
8,968
1,572
7,396
731
9,638
8,959
1,563
7,396
679
9,535
8,845
1,445
7,400
690
9,451
8,770
1,380
7,391
681
9,431
8,751
1,355
7,397
679
12,463
5,530
4,755
2,178
131,339'
129,316'
62,428'
879
61,548'
60,378'
1,170
21,523'
14,462'
12,375
1,657
2,487
8,231
7,006
542
6,455'
428
4,098
2,023
1,471
2,917
126,951'
67,752
14,462
7,784
4,118
2,560
129,959'
127,937'
esjsor
818
62,332'
61,138'
1,195
21,628'
14,473'
11,486
1,175
1,967
8,344
5,779
552
6,626'
451
3,793
2,022
1,492
2,922
125,544'
65,922
13,564
6,802
3,921
2,842
131,791
129,765
63,751'
966
62,786'
61,465'
1,321
21,716'
14,540'
12,238
1,667
2,367
8,204
6,113
549
6,584
516
3,758
2,027
1,509
2,931
127,351
66,542
15,020
8,152
4,032
2,836
132,422
130,402
63,334'
844
62,489'
61,110'
1,379
21,807'
14,557'
12,262
1,816
2,294
8,152
6,740'
531
6,726
389
4,055
2,020
1,530
2,984
127,908
63,750
14,771
7,283
4,324
3,164
134,033
132,011
63,16c
948
62,213'
60,902'
1,310
21,866'
14,605'
12,732
2,010
2,187
8,534
7,888'
520
6,732
406
4,101
2,022
1,522
2,960
129,551
63,430
14,187
8,463
3,617
2,106
134,655
132,615
64,118
800
63,319
62,029
1,290
21,925
14,752
12,782
2,014
2,402
8,366
7,382
510
7,101
393
3,650
2,041
1,521
3,022
130,113
67,309
12,286
6,442
3,426
2,418
133,924
131,894
63,821
870
62,951
61,682
1,269
22,056
14,721
12,638
2,265
2,125
8,248
7,114
497
7,168
381
3,500
2,030
1,530
3,031
129,363
66,050
15,575
9,1%
3,848
2,531
134,123
132,080
64,432
763
63,668
62,408
1,261
22,235
14,794
11,791
1,696
1,875
8,221
6,838
507
7,282
396
3,804
2,042
1,532
3,042
129,549
63,981
14,462
8,056
3,660
2,746
134,126
132,083
64,246
736
63,511
62,329
1,182
22,171
14,846
12,224
2,010
2,016
8,197
6,598
474
7,332
388
3,803
2,043
1,516
3,008
129,602
63,328
247,125'
247,215'
250,056
246,315
250,084
250,808
246,169
251,516
246,594
46,035
31,917
612
200
4,466
4,913
740
3,188
44,044
30,159
544
184
4,689
4,767
660
3,040
49,479
32,657
706
606
5,451
4,918
842
4,298
43,829
30,398
627
442
4,170
4,752
564
2,875
47,373
32,016
563
175
4,554
5,194
618
4,252
44,406
29,766
637
419
4,722
4,992
594
3,276
44,273
30,731
541
265
4,262
4,426
547
3,501
45,136
31,130
737
765
4,635
4,337
618
2,913
45,490
30,558
696
547
4,783
4,856
583
3,466
3,764
72,072
65,547
2,246
29
2,554
1,696
61,166'
3,740
73,780
66,514
2,434
34
2,896
1,903
58,956
520
58,717
39,404
3,666
77,490
69,591
2,936
31
3,042
1,890
63,152
750
4,005
58,397
40,046
3,606
78,482
70,222
2,961
34
3,235
2,028
54,414
913
58,536
41,629
3,803
76,875
69,189
2,608
30
3,222
1,826
64,272
575
678
63,020
39,040
3,745
77,285
69,614
2,747
30
2,985
1,908
59,237
888
58,067
42,294
3,658
74,593
67,159
2,585
35
3,151
1,664
58,800
925
83
57,792
43,313
3,651
76,050
68,522
2,601
28
3,283
1,615
59,448
4,284
56,882'
42,428
3,699
72,684
66,208
2,276
29
2,596
1,575
63,098'
953
3,519
58,626'
41,856
2,760
51,654
42,691
225,465'
225,382'
228,250
224,193
228,152
228,396
223,944
229,491
224,682
21,660
21,832
21,806
22,122
21,932
22,411
22,225
22,025
21,912
1 Cash and balances due from depository institutions
2 Total loans, leases and securities, net 1
May 9
Securities
Investment account, by maturity
One year or less
Over one through five years
Over five years
6
7
8
q
Investment account
States and political subdivisions, by maturity
One year or less
Over one year
Other bonds, corporate stocks and securities
11
1?
13
14
15
17
18
19
70
71
7?
23
24
75
76
77
78
29
30
31
32
33
34
35
36
37
38
39
40
41
4?
43
Loans and leases
Federal funds sold 3
To commercial banks
To nonbank brokers and dealers in securities
To others
Other loans and leases, gross
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions.
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions . . . .
All other
Lease financing receivables
LESS: Unearned income
Loan and lease reserve
Other loans and leases, net
All other assets 4
44 Total assets
45
46
47
48
49
50
51
5?
53
Deposits
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits
ATS, NOW, Super NOW, telephone transfers) . .
Nontransaction balances
Individuals, partnerships and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Foreign governments, official institutions and banks . .
Liabilities for borrowed money
54
55
56
57
58
59
60
61
Treasury tax-and-loan notes
62
63
All other liabilities for borrowed money 5
64 Other liabilities and subordinated note and debentures..
65 Total liabilities
66 Residual (total assets minus total liabilities) 6
1.
2.
3.
4.
Excludes trading account securities.
Not available due to confidentiality.
Includes securities purchased under agreements to resell.
Includes trading account securities.
5. Includes federal funds purchased and securities sold under agreements to
repurchase.
6. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
A20
1.29
DomesticNonfinancialStatistics • July 1984
LARGE WEEKLY REPORTING COMMERCIAL BANKS
Millions of dollars, Wednesday figures
Balance Sheet Memoranda
1984
Account
May 2 '
May 9 '
May 16
May 3 C
May 2 3 '
June 6
June 13
June 20
June 27
B A N K S WITH A S S E T S OF $ 1 . 4 B I L L I O N OR M O R E
1
2
3
4
5
6
7
Total loans and leases (gross) and investments adjusted 1
Total loans and leases (gross) adjusted 1
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates—total 2
Commercial and industrial
Other
Nontransaction savings deposits (including M M D A s ) . . .
733,769
602,647
142,386
3,126
1,983
1,144
155,085
730,081
601,946
144,738
3,125
1,964
1,161
155,406
731,918'
604,980'
146,776'
3,122
2,005
1,116
155,634
731,471
605,444
150,990
2,549
1,933
616
155,224
735,314
607,656
152,853
2,518
1,914
603
155,357
734,133
608,056
153,412
2,557
1,952
605
155,819
731,674
607,431
154,512
2,618
1,929
689
155,195
733,647
611,682
154,256
2,675
1,940
735
154,363
734,873
613,046
156,594
2,741
1,960
781
154,108
156,485
136,615
29,084
155,216
135,462
29,739
156,697
136,887
30,397
157,207
137,474
31,273
159,352
139,510
32,668
157,843
138,365
33,266
156,804
137,503
33,894
157,889
138,806
34,118
157,448
138,522
34,710
B A N K S IN N E W YORK CITY
8 Total loans and leases (gross) and investments adjusted1,3 . .
9 Total loans and leases (gross) adjusted 1
10 Time deposits in amounts of $100,000 or more
1. Exclusive of loans and federal funds transactions with domestic commercial
banks.
2. Loans sold are those sold outright to a bank's own foreign branches,
1.30
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
3. Excludes trading account securities.
LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS WITH ASSETS OF
$1.4 BILLION OR MORE ON JUNE 30, 1980 Assets and Liabilities
Millions of dollars, Wednesday figures
1984
Account
May 2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Cash and due from depository institutions.
Total loans and securities
U.S. Treasury and govt, agency securities 1
Other securities 1
Federal funds sold 2
To commercial banks in the United States
To others
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial
paper
All other
U.S. addressees
Non-U.S. addressees
To financial institutions
Commercial banks in the United States.
Banks in foreign countries
Nonbank financial institutions
To foreign govts, and official institutions 3 ..
For purchasing and carrying securities . .
All other 3
Other assets (claims on nonrelated
parties)
Net due from related institutions
Total assets
Deposits or credit balances due to
other than directly related
institutions
Credit balances
Demand deposits
Individuals, partnerships, and
corporations
Other
Time and savings deposits
Individuals, partnerships, and
corporations
Other
Borrowings from other than directly
related institutions
Federal funds purchased 4
From commercial banks in the
United States
From others
Other liabilities for borrowed money
To commercial banks in the
United States
To others
Other liabilities to nonrelated parties
Net due to related institutions
Total liabilities
May 9
May 16
May 23
May 3C
June 6
June 13
June 20
June 27
6,570
45,572
4,429
786
4,421
4,224
198
35,936
19,693
7,013
45,474
4,458
788
4,389
4,145
244
35,839
20,095
6,865
46,084
4,453
790
4,366
4,095
270
36,476
20,297
6,748
45,941
4,331
786
4,083
3,790
293
36,741
19,888
6,489
47,286
4,395
789
4,748
4,467
281
37,354
20,153
7,310
46,507
4,610
780
3,360
3,128
232
37,756
20,513
6,764
45,894
4,556
784
3,488
3,335
153
37,066
20,034
7,394
46,374
4,466
802
3,382
3,250
132
37,724
20,320
6,858
46,985
4,339
798
4,328
3,928
400
37,520
20,321
3,298
16,396
14,737
1,659
12,614
10,618
1,384
612
801
949
1,879
3,264
16,831
15,161
1,669
12,408
10,324
1,420
664
800
676
1,860
3,366
16,931
15,256
1,675
12,797
10,791
1,411
595
802
712
1,869
3,266
16,622
14,994
1,628
13,380
11,319
1,404
657
806
821
1,847
3,215
16,938
15,295
1,643
13,601
11,400
1,456
745
812
951
1,838
3,162
17,350
15,694
1,656
13,742
11,640
1,470
632
803
828
1,869
3,261
16,773
15,151
1,622
13,455
11,353
1,399
703
789
839
1,949
3,234
17,086
15,423
1,663
14,039
11,966
1,348
726
760
664
1,940
3,312
17,008
15,320
1,689
13,989
11,714
1,450
825
760
643
1,807
14,652
9,415
76,209
15,105
10,290
77,882
15,376'
10,245'
78,570
16,000
10,141
78,830
15,267
9,764
78,806
15,691
11,428
80,937
15,940
11,774
80,372
15,953
11,767
81,488
15,376
11,498
80,717
20,389
138
1,881'
21,010
145
1,907
21,054
186
1,839'
21,858
135
1,913'
21,770
169
1,792
21,766
143
1,797
21,897
127
1,572
21,880
112
1,901
22,357
132
1,677
842'
1,038
18,37(K
771
1,136
18,957
812'
1,027
19,029'
807'
1,106
19,810'
881
912
19,808
791
1,006
19,826
802
769
20,198
806
1,095
19,867
799
878
20,548
15,168'
3,202
15,831
3,126
15,912'
3,117
16,678'
3,132
16,625
3,184
16,494
3,332
16,894
3,304
16,472
3,395
17,105
3,444
32,273
9,223
33,530
9,983
33,474
8,513
32,456'
7,176'
32,226
7,508
35,404
11,363
34,090
10,258
34,990
10,836
33,907
8,770
6,275
2,948
23,050
6,829
3,154
23,547
5,786'
2,727'
24,961
4,325'
2,850
25,280
4,718
2,791
24,718
8,757
2,606
24,041
7,811
2,447
23,832
8,066
2,770
24,154
5,976
2,794
25,136
19,768
3,282
15,452
8,095
76,209
20,171
3,376
15,684
7,659
77,882
21,424
3,536
16,067
7,974
78,570
21,756
3,524
16,471
8,045'
78,830
21,286
3,432
15,803
9,006
78,806
20,817
3,224
16,265
7,502
80,937
20,372
3,459
16,418
7,967
80,372
20,471
3,683
16,477
8,140
81,488
21,064
4,072
15,872
8,581
80,717
30,730
25,515
31,005
25,758
31,198
25,956
30,832
25,715
31,419
26,236
31,738
26,348
31,207
25,867
31,158
25,890
31,343
26,207
MEMO
42 Total loans (gross) and securities adjusted 5
43 Total loans (gross) adjusted 5
1. Prior to Jan. 4, 1984, U.S. government agency securities were included in
other securities.
2. Includes securities purchased under agreements to resell.
3. As of Jan. 4, 1984, loans to foreign governments and official institutions is
reported as a separate item. Before that date it was included in all other loans.
4. Includes securities sold under agreements to repurchase.
5. Exclusive of loans to and federal funds sold to commercial banks in the
United States.
IPC Demand Deposits
1.31
A21
GROSS D E M A N D D E P O S I T S of Individuals, Partnerships, and Corporations 1
Billions of dollars, estimated daily-average balances
Commercial banks
Type of holder
1978
Dec.
19792
Dec.
1982
1981
Dec.
1980
Dec.
Dec.
1984
1983
Mar.
Sept.
June
Dec.
Mar.
1 All holders—Individuals, partnerships, and
corporations
290.0
302.3
315.5
288.9
291.7
272.0
281.9
280.3
293.5
279.3
2
3
4
5
6
27.0
146.9
98.2
2.8
15.1
27.1
157.7
99.2
3.1
15.1
29.8
162.8
102.4
3.3
17.2
28.0
154.8
86.6
2.9
16.7
35.4
150.5
85.9
3.0
17.0
32.7
139.9
79.4
3.1
16.9
34.6
146.9
80.3
3.0
17.2
32.1
150.2
77.9
2.9
17.1
32.8
161.3
78.5
3.3
17.8
31.7
150.3
78.1
3.3
15.9
Financial business
Nonfinancial business
Consumer
Foreign
Other
Weekly reporting banks
1978
Dec.
19793
Dec.
1982
1980
Dec.
Dec.
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
1984
Mar.
June
Sept.
Dec.
Mar.
127.6
139.3
147.4
137.5
144.2
133.0
139.6
136.3
146.2
139.2
18.2
67.2
32.8
2.5
6.8
20.1
74.1
34.3
3.0
7.8
21.8
78.3
35.6
3.1
8.6
21.0
75.2
30.4
2.8
8.0
26.7
74.3
31.9
2.9
8.4
24.3
68.9
28.7
3.0
8.1
26.1
72.8
28.5
2.8
9.3
23.6
72.9
28.1
2.8
8.9
24.2
79.8
29.7
3.1
9.3
23.5
76.4
28.4
3.2
7.7
1. Figures include cash items in process of collection. Estimates of gross
deposits are based on reports supplied by a sample of commercial banks. Types of
depositors in each category are described in the June 1971 BULLETIN, p. 466.
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.
1983
1981
Dec.
3. 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 domestic offices
exceeding $750 million as of Dec. 31, 1977. Beginning in March 1979, demand
deposit ownership estimates 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.
A22
1.32
DomesticNonfinancialStatistics • July 1984
COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1983
19791
Dec.
1978
Dec.
Instrument
1980
Dec.
1984
1982
Dec. 2
1981
Dec.
Dec.
Jan.
Feb.
Mar.
Apr.
May
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
6
Financial companies 3
Dealer-placed
paper4
Total
Bank-related (not seasonally
adjusted)
Directly placed paperJ
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies 6
83,438
112,803
124,374
165,829
166,670
185,852
184,419
190,808
200,631
209,535
213,136
12,181
17,359
19,599
30,333
34,634
41,688
39,884
41,363
43,167
46,091
45,397
3,521
2,784
3,561
6,045
2,516
2,441
2,087
1,765
1,767
1,865
1,6%
51,647
64,757
67,854
81,660
84,130
96,548
98,495
102,606
107,421
109,376
110,791
12,314
19,610
17,598
30,687
22,382
36,921
26,914
53,836
32,034
47,906
35,566
47,616
37,636
46,040
36,958
46,839
39,617
50,043
41,881
54,068
46,338
56,948
Bankers dollar acceptances (not seasonally adjusted)
7 Total
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
Basis
14 Imports into United States
15 Exports from United States
16 All other
8
9
10
11
12
13
33,700
45,321
54,744
69,226
79,543
78,309
73,450
74,367
73,221
78,457
79,530
8,579
7,653
927
9,865
8,327
1,538
10,564
8,963
1,601
10,857
9,743
1,115
10,910
9,471
1,439
9,355
8,125
1,230
9,546
7,814
1,732
9,237
7,897
1,340
8,734
7,040
1,694
11,160
9,029
2,131
9,927
8,422
1,504
587
664
24,456
704
1,382
33,370
776
1,791
41,614
195
1,442
56,731
1,480
949
66,204
418
729
68,225
0
729
63,174
0
777
64,353
0
896
63,592
305r
834
66,468 r
0
679
68,925
8,574
7,586
17,541
10,270
9,640
25,411
11,776
12,712
30,257
14,765
15,400
39,060
17,683
16,328
45,531
15,649
16,880
45,781
15,028
16,159
42,262
15,495
15,818
43,055
15,107
15,572
42,542
16,579
16,283'
45,545 r
16,687
15,938
46,906
1. A change in reporting instructions results in offsetting shifts in the dealerplaced and directly placed financial company paper in October 1979.
2. Effective Dec. 1,1982, there was a break in the commercial paper series. The
key changes in the content of the data involved additions to the reporting panel,
the exclusion of broker or dealer placed borrowings under any master note
agreements from the reported data, and the reclassification of a large portion of
bank-related paper from dealer-placed to directly placed.
3. Institutions engaged primarily in activities such as, but not limited to,
commercial, savings, and mortgage banking; sales, personal, and mortgage
1.33
financing; factoring, finance leasing, and other business lending; insurance
underwriting; and other investment activities.
4. Includes all financial company paper sold by dealers in the open market.
5. As reported by financial companies that place their paper directly with
investors.
6. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum
Effective date
Rate
1981—Nov. 24
Dec. 1
16.00
15.75
1982—Feb.
16.50
17.00
16.50
16.00
15.50
15.00
14.50
14.00
13.50
2
18
23
July 20
29
Aug. 2
16
18
23
Effective Date
Average
rate
1982—Oct.
7
14
Nov. 22
13.00
12.00
11.50
1983—Jan. 11
Feb. 28
Aug. 8
11.00
10.50
11.00
1984—Mar.
Apr.
May
June
11.50
12.00
12.50
13.00
19
5
8
25
1982—Jan.
Feb.
Mar.
Apr.
May
June.
July
Aug.
Sept.
Oct.
Nov.
Dec.
15.75
16.56
16.50
16.50
16.50
16.50
16.26
14.39
13.50
12.52
11.85
11.50
1983—Jan.
Feb.
Mar.
11.16
10.98
10.50
Month
Average
rate
1983—Apr..
May,
June.
July .
Aug.
Sept.
Oct..
Nov.
Dec.
10.50
10.50
10.50
10.50
10.89
1984—Jan.
Feb.,
Mar.
Apr.
May
June
11.00
11.00
11.21
11.93
12.39
12.58
11.00
11.00
11.00
11.00
Business Lending
1.34
A23
TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 7-11, 1984
Size of loan (in thousands of dollars)
Item
All
sizes
1-24
50-99
25-49
100-499
500-999
and over
SHORT-TERM COMMERCIAL A N D INDUSTRIAL L O A N S
1
2
3
4
5
6
7
8
9
10
11
12
13
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
With fixed rates
With floating rates
Weighted-average interest rate (percent per annum) . .
Interquartile range 1
With fixed rates
With floating rates
Percentage of amount of loans
With floating rate
Made under commitment
With no stated maturity
With one-day maturity
38,733,851
194,776
1.4
1.0
2.1
12.45
11.82-12.75
12.23
12.80
1,071,948
135,176
4.5
3.8
6.0
14.93
13.95-15.87
14.89
14.99
786,804
23,944
4.6
4.0
5.4
14.46
13.70-15.39
14.16
14.80
947,786
14,370
5.0
3.0
7.0
14.41
13.80-14.94
14.28
14.50
2,643,636
15,327
5.4
4.1
6.3
13.86
13.24-14.37
13.76
13.90
987,715
1,503
3.5
2.1
4.6
13.37
12.68-13.88
12.86
13.61
32,295,962
4,456
.8
.7
1.1
12.12
11.75-12.36
11.99
12.36
39.2
69.7
9.9
39.0
34.7
32.3
9.1
.1
46.2
40.1
10.2
.1
57.8
51.7
18.6
.1
67.4
54.8
24.7
.3
68.8
70.6
35.4
3.4
35.4
73.4
7.7
46.7
1-99
LONG-TERM COMMERCIAL A N D INDUSTRIAL L O A N S
14
15
16
17
18
19
20
21
22
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
With fixed rates
With floating rates
Weighted-average interest rate (percent per annum) . .
Interquartile range 1
With fixed rates
With floating rates
23
24
Percentage of amount of loans
With floating rate
Made under commitment
25
26
27
28
29
30
31
32
33
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
With fixed rates
With floating rates
Weighted-average interest rate (percent per annum) . .
Interquartile range 1
With fixed rates
With floating rates
34
35
36
37
38
39
40
41
4,129,515
35,908
47.9
44.3
50.2
13.12
12.00-13.92
12.58
13.49
683,061
33,322
42.8
38.2
46.2
15.00
14.37-15.87
14.98
15.02
348,909
1,689
46.1
57.2
42.5
13.91
13.10-14.45
14.03
13.87
198,394
296
45.2
54.6
43.7
13.50
12.68-14.09
12.75
13.62
2,899,152
600
49.4
44.6
53.1
12.56
11.75-13.24
11.94
13.04
59.9
75.4
58.4
37.0
75.7
57.1
86.7
74.5
56.5
86.7
1-24
CONSTRUCTION A N D L A N D DEVELOPMENT LOANS
500 and over
50-99
211,528
22,087
10.4
12.7
5.8
15.04
14.37-15.79
15.05
15.03
118,448
3,012
9.3
9.3
9.1
14.78
14.75-15.03
14.87
14.33
163,406
2,292
7.7
6.1
11.8
14.71
14.37-15.57
14.80
14.51
890,297
4,563
5.9
4.2
8.5
13.92
13.24-14.50
14.00
13.80
1,183,865
984
9.7
11.0
8.6
13.19
12.02-14.09
12.28
14.06
Percentage of amount of loans
With floating rate
Secured by real estate
Made under commitment
With no stated maturity
With one-day maturity
43.2
72.6
43.8
9.5
.0
35.3
95.4
50.0
3.7
.0
17.1
98.3
18.0
33.6
.1
31.7
97.8
25.1
5.8
.6
40.8
78.7
37.9
3.4
.0
50.7
57.8
52.2
13.1
.0
Type of construction
1- to 4-family
Multifamily
Nonresidential
28.8
3.6
67.6
53.5
3.0
43.5
91.1
2.2
6.8
79.3
5.9
14.8
34.0
2.8
63.1
88.6
L O A N S TO FARMERS
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per annum) . .
46
Interquartile range 1
42
43
44
45
47
48
49
50
51
25-49
2,567,543
32,938
8.2
7.9
8.5
13.76
13.22-14.50
13.53
14.07
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
All sizes
1,502,201
77,344
8.3
14.25
13.55-14.95
339,127
2,312
11.3
14.35
13.67-15.02
13.80-14.95
14.79
13.97
14.07
14.34
14.63
14.63
14.84
14.59
14.56
14.41
14.54
14.21
14.44
13.74
13.33
13.89
14.68
13.91
14.10
14.14
13.63
14.51
15.04
15.88
14.55
13.93
14.59
14.02
195,641
173,959
2,720
8.4
14.24
13.59-15.03
250 and over
6,105
8.0
14.41
13.86
14.29
176,270
11,974
7.1
100-249
50-99
25-49
199,153
53,658
6.6
14.64
13.96-15.02
1. Interest rate range that covers the middle 50 percent of the total dollar
amount of loans made.
2. Fewer than 10 sample loans.
10-24
1-9
7.2
4.1
(2)
(2)
14.51
14.09-15.02
418,052
574
7.5
13.75
12.55-14.49
(2)
(2)
NOTE. For more detail, see the Board's E.2 (111) statistical release,
(2)
A24
1.35
DomesticNonfinancialStatistics • July 1984
INTEREST RATES Money and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1984
Instrument
1981
1982
1984, week ending
1983
Mar.
Apr.
May
June
June 1
June 8
June 15
June 22
June 29
MONEY MARKET RATES
1 Federal funds 1 ' 2
2 Discount window borrowing 1 ' 2 ' 3
Commercial paper 4 ' 5
3
1-month
4
3-month
5
6-month
Finance paper, directly placed 4 ' 5
6
1-month
7
3-month
8
6-month
Bankers acceptances 5 ' 6
9
3-month
10
6-month
Certificates of deposit, secondary market 7
11
1-month
12
3-month
13
6-month
14 Eurodollar deposits, 3-month 8
U . S . Treasury bills 5
Secondary market 9
15
3-month
16
6-month
17
1-year
Auction average 1 0
18
3-month
19
6-month
20
16.38
13.42
12.26
11.02
9.09
8.50
9.91
8.50
10.29
8.87
10.32
9.00
11.06
9.00
10.30
9.00
10.72
9.00
10.85
9.00
11.49
9.00
11.27
9.00
15.69
15.32
14.76
11.83
11.89
11.89
8.87
8.88
8.89
9.81
9.83
9.86
10.17
10.18
10.22
10.38
10.65
10.87
10.82
10.98
11.23
10.32
10.72
11.08
10.56
10.78
11.13
10.75
10.87
11.19
10.98
11.06
11.24
11.07
11.26
11.37
15.30
14.08
13.73
11.64
11.23
11.20
8.80
8.70
8.69
9.76
9.54
9.38
10.08
9.86
9.76
10.26
10.16
10.03
10.76
10.38
10.25
10.28
10.26
10.11
10.53
10.26
10.13
10.69
10.28
10.15
10.90
10.45
10.31
11.04
10.55
10.45
15.32
14.66
11.89
11.83
8.90
8.91
9.88
9.91
10.22
10.26
10.84
11.06
11.04
11.30
10.88
11.35
10.76
11.20
10.81
11.19
11.22
11.33
11.41
11.49
15.91
15.91
15.77
16.79
12.04
12.27
12.57
13.12
8.96
9.07
9.27
9.56
9.91
10.08
10.37
10.40
10.24
10.41
10.73
10.83
10.62
11.11
11.64
11.53
11.02
11.34
11.96
11.68
10.56
11.31
11.99
11.67
10.69
11.09
11.83
11.39
10.83
11.13
11.94
11.50
11.19
11.46
11.97
11.75
11.41
11.67
12.11
12.11
14.03
13.80
13.14
10.61
11.07
11.07
8.61
8.73
8.80
9.52
9.66
9.67
9.69
9.84
9.95
9.83
10.31
10.57
9.87
10.51
10.93
9.76
10.56
10.94
9.81
10.49
10.80
9.95
10.50
10.87
9.91
10.56
10.97
9.81
10.48
11.09
14.029
13.776
13.159
10.686
11.084
11.099
8.63
8.75
8.86
9.44
9.58
9.68
9.69
9.83
9.86
9.90
10.31
10.64
9.94
10.55
10.92
9.83
10.62
9.90
10.57
10.07
10.66
10.92
10.01
10.49
9.77
10.49
14.78
14.56
12.27
12.80
9.57
10.21
10.59
11.31
10.90
11.69
11.66
12.47
12.08
12.91
11.92
12.71
12.92
13.01
13.06
13.00
12.92
12.76
10.45
10.80
11.02
11.10
11.34
11.18
11.59
12.02
12.25
12.32
12.45
12.38
11.98
12.37
12.56
12.63
12.65
12.65
12.75
13.17
13.34
13.41
13.43
13.43
13.18
13.48
13.56
13.56
13.54
13.44
12.99
13.34
13.45
13.47
13.47
13.42
12.02
12.83
12.90
13.08
13.36
13.46
13.43
13.45
13.32
12.15
12.98
14.44
14.24
14.06
13.91
13.72
13.44
12.10
12.94
13.05
13.25
13.69
13.82
13.86
13.79
13.80
13.24
13.49
13.55
13.55
13.51
13.41
12.28
13.15
13.35
13.46
13.72
13.77
13.79
13.71
13.59
12.87
12.23
10.84
11.90
12.17
12.89
13.00
13.25
12.94
12.91
12.97
13.18
10.43
11.76
11.33
10.88
12.48
11.66
8.80
10.17
9.51
9.41
10.22
9.94
9.54
10.30
9.96
9.98
10.55
10.49
10.05
10.68
10.67
10.30
11.10
11.07
10.00
10.85
10.78
10.00
10.60
10.59
10.00
10.50
10.56
10.20
10.75
10.76
15.06
14.17
14.75
15.29
16.04
14.94
13.79
14.41
15.43
16.11
12.78
12.04
12.42
13.10
13.55
13.33
12.57
13.22
13.54
13.99
13.59
12.81
13.48
13.77
14.31
14.13
13.28
14.10
14.37
14.74
14.40
13.55
14.33
14.66
15.05
14.44
13.56
14.44
14.73
15.04
14.34
13.46
14.32
14.64
14.95
14.34
13.48
14.29
14.58
15.01
14.37
13.55
14.27
14.59
15.06
14.53
13.71
14.41
14.80
15.20
16.63
15.49
12.73
13.63
13.96
14.79
15.00
15.02
14.82
14.78
15.21
15.28
12.36
5.20
12.53
5.81
11.02
4.40
11.39
4.63
11.66
4.64
11.72
4.72
12.04
4.86
11.97
4.93
12.07
4.79
12.00
4.89
12.02
4.82
12.06
4.92
CAPITAL M A R K E T R A T E S
U . S . Treasury notes and bonds 1 1
Constant maturities 12
21
1-year
22
2-year
73
24
3-year
25
5-year
26
7-year
27
10-year
28
20-year
29
30-year
Composite 1 4
30
Over 10 years (long-term)
State and local notes and bonds
Moody's series 1 5
31
Aaa
32
Baa
33
Bond Buyer series 1 6
Corporate bonds
Seasoned issues 1 7
34
All industries
35
Aaa
Aa
36
37
A
Baa
38
39
A-rated, recently-offered utility
bonds 1 8
MEMO: Dividend/price ratio 19
40
Preferred stocks
41
Common stocks
1. Weekly and monthly figures are averages of all calendar days, where the
rate for a weekend or holiday is taken to be the rate prevailing on the preceding
business day. The daily rate is the average of the rates on a given day weighted by
the volume of transactions at these rates.
2. Weekly figures are averages for statement week ending Wednesday.
3. Rate for the Federal Reserve Bank of N e w York.
4. Unweighted average of offering rates quoted by at least five dealers (in the
case of commercial paper), or finance companies (in the case of finance paper).
Before November 1979, maturities for data shown are 30-59 days, 90-119 days,
and 120-179 days for commercial paper; and 30-59 days, 9 0 - 1 1 9 days, and 150—
179 days for finance paper.
5. Yields are quoted on a bank-discount basis, rather than an investment yield
basis (which would give a higher figure).
6. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
7. Unweighted average of offered rates quoted by at least five dealers early in
the day.
8. Calendar week average. For indication purposes only.
9. Unweighted average of closing bid rates quoted by at least five dealers.
10. Rates are recorded in the w e e k in which bills are issued. Beginning with the
Treasury bill auction held on Apr. 18, 1983, bidders were required to state the
percentage yield (on a bank discount basis) that they would accept to two decimal
places. Thus, average issuing rates in bill auctions will be reported using t w o
rather than three decimal places.
11. Yields are based on closing bid prices quoted by at least five dealers.
12. Yields adjusted to constant maturities by the U . S . Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.
13. Each biweekly figure is the average of five business days ending on the
Monday following the date indicated. Until Mar. 31, 1983, the biweekly rate
determined the maximum interest rate payable in the following two-week period
on 2-'/2-year small saver certificates. (See table 1.16.)
14. Averages (to maturity or call) for all outstanding bonds neither due nor
callable in less than 10 years, including several very low yielding "flower" bonds.
15. General obligations based on Thursday figures; M o o d y ' s Investors Service.
16. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
17. Daily figures from M o o d y ' s Investors Service. Based o n yields to maturity
on selected long-term bonds.
18. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations.
19. Standard and Poor's corporate series. Preferred stock ratio based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
Securities Markets
1.36
STOCK MARKET
A25
Selected Statistics
1984
1983
Indicator
1981
1982
1983
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
3
Transportation
4
Utility
5
Finance
6 Standard & Poor's Corporation (1941-43 = 10)1 . . .
7 American Stock Exchange 2
(Aug. 31, 1973 = 100)
74.02
85.44
72.61
38.90
73.52
128.05
68.93
78.18
60.41
39.75
71.99
119.71
92.63
107.45
89.36
47.00
95.34
160.41
96.78
112.87
95.41
48.73
94.79
167.65
95.36
110.77
97.68
48.50
94.48
165.23
94.92
110.60
98.79
47.00
94.25
164.36
96.16
112.16
97.98
47.43
95.79
166.39
90.60
105.44
86.33
45.67
89.95
157.70
90.66
105.92
86.10
44.83
89.50
157.44
90.67
106.56
83.61
43.86
88.22
157.60
90.07
105.94
81.62
44.22
85.06
156.55
88.28
104.04
79.29
43.65
80.75
153.12
171.79
141.31
216.48
223.76
218.42
221.31
224.83
207.95
210.09
207.66
206.39
201.24
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
46,967
5,346
64,617
5,283
85,418
8,215
85,445
7,751
86,405
6,160
88,041 105,518
7,167
6,939
96,641
6,431
84,328
5,382
85,874
5,863
88,170
5,935
85,920
5,071
Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers 3
14,411
13,325
23,000
21,030
22,075
23,000 23,132
22,557
22,668
22,830
22,360
11 Margin stock
12 Convertible bonds
13 Subscription issues
14,150
259
2
12,980
344
1
22,720
279
1
20,690
339
1
21,790
285
1
22,720 22,870
279
261
1
1
22,330
226
1
22,460
208
4
n.a.
t
n.a.
3,515
7,150
5,735
8,390
6,620
8,430
6,630
7,695
6,512
7,599
6,420
8,420
6,520
8,265
6,450
7,910
6,685
8,115
Free credit balances at
14 Margin-account
15 Cash-account
*
*
I
n.a.
t
4
brokers
6,620
8,430
6,510
8,230
Margin-account debt at brokers (percentage distribution, end of period)
16 Total
17
18
19
20
21
22
By equity class (in percent)5
Under 40
40-49
50-59
60-69
70-79
80 or more
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
37.0
24.0
17.0
10.0
6.0
6.0
21.0
24.0
24.0
14.0
9.0
8.0
41.0
22.0
16.0
9.0
6.0
6.0
35.0
24.0
17.0
10.0
7.0
7.0
48.0
22.0
17.0
10.0
7.0
6.0
41.0
22.0
16.0
9.0
6.0
6.0
43.0
21.0
15.0
9.0
6.0
6.0
48.0
20.0
13.0
8.0
6.0
5.0
46.0
20.0
14.0
9.0
6.0
5.0
47.0
20.0
13.0
8.0
6.0
6.0
53.0
18.0
12.0
7.0
5.0
5.0
n.a.
1
1
T
Special miscellaneous-account balances at brokers (end of period)
23 Total balances (millions of dollars)
Distribution by equity status
24 Net credit status
Debt status, equity of
25
60 percent or more
26
Less than 60 percent
6
58,329 62,670
25,870
35,598
58,329
54,029
57,490
58.0
62.0
63.0
63.0
63.0
63.0
31.0
11.0
29.0
9.0
28.0
9.0
28.0
9.0
29.0
8.0
28.0
9.0
63,411
65,855
66,340
70,110
61.0
59.0
61.0
60.0
60.0
29.0
10.0
29.0
12.0
28.0
11.0
29.0
11.0
27.0
13.0
(percent)
f
1
n.a.
1
1
t
Margin requirements (percent of market value and effective date) 7
27 Margin stocks
28 Convertible bonds
29 Short sales
Mar. 11, 1968
June 8, 1968
70
50
70
80
60
80
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Beginning July 5, 1983, the American Stock Exchange rebased its index
effectively cutting previous readings in half.
3. Beginning July 1983, under the revised Regulation T, margin credit at
broker-dealers includes credit extended against stocks, convertible bonds, stocks
acquired through exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds,
and subscription issues was discontinued in April 1984, and margin credit at
broker-dealers became the total that is distributed by equity class and shown on
lines 17-22.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
May 6, 1970
65
50
65
Dec. 6, 1971
55
50
55
Nov. 24, 1972
65
50
65
Jan. 3, 1974
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
proceeds) occur.
7. Regulations G, T, and U of the Federal Reserve Board of Governors,
prescribed in accordance with the Securities Exchange Act of 1934, limit the
amount of credit to purchase and carry margin stocks that may be extended on
securities as collateral by prescribing a maximum loan value, which is a specified
percentage of the market value of the collateral at the time the credit is extended.
Margin requirements are the difference between the market value (100 percent)
and the maximum loan value. The term "margin stocks" is defined in the
corresponding regulation.
A26
1.37
DomesticNonfinancialStatistics • July 1984
SELECTED FINANCIAL INSTITUTIONS
Millions of dollars, end of period
Selected Assets and Liabilities
1983
Account
1981
1984
1982
July
Aug.
Sept.
Nov.
Oct.
Dec.
Jan.
Feb.
Mar.
Apr.
May P
Savings and loan associations
664,167
707,646
741,416
746,998
748,491
756,953
763,365
771,705
772,723
780,107
796,095
806,482
821,376
518,547
63,123
82,497
483,614
85,438
138,594
479,322
102,546
159,548
483,178
99,812
164,008
482,305
100,243
165,943
485,366
101,553
170,034
489,720
101,553
172,259
493,432
103,395
174,878
494,682
101,883
176,158
497,987
103,917
178,203
502,143
108,565
185,387
509,283
105,950
191,249
518,147
109,050
194,179
664,167
707,646
741,416
746,998
748,491
756,953
763,365
771,705
772,723
780,107
796,095
806,482
821,376
525,061
88,782
62,794
25,988
6,385
15,544
567,961
97,850
63,861
33,989
9,934
15,602
610,826
84,694
53,579
31,115
17,094
17,527
615,369
84,267
52,182
32,085
17,967
18,615
618,002
85,976
52,179
33,797
18,812
15,496
622,577
87,367
52,678
34,689
19,209
17,458
625,013
89,235
51,735
37,500
19,728
19,179
634,076
91,443
52,626
38,817
21,117
15,275
639,694
86,322
50,880
35,442
21,498
15,777
644,588
86,526
50,465
36,061
21,939
17,520
656,252
93,321
50,663
42,658
22,929
14,938
660,262
97,468
51,951
45,517
23,898
16,904
669,874
102,363
53,620
48,743
24,677
17,155
12 Net worth 3
28,395
26,233
28,369
28,626
29,017
29,551
29,938
30,911
30,930
31,473
31,584
31,848
31,984
13 MEMO: Mortgage loan commitments
outstanding 4
15,225
18,054
31,733
32,415
32,483
32,798
34,780
32,9%
39,813
36,150
39,813
41,672
44,376
1
?
3
4
Assets
Mortgages
Cash and investment securities 1
Other
5 Liabilities and net worth
6
7
8
9
10
11
Savings capital
Borrowed money
FHLBB
Other
Loans in process 2
Other
Mutual savings banks 5
175,728
174,197
182,822
183,612
186,041
187,385
189,149
193,535
194,217
195,168
196,944
198,000
99,997
14,753
94,091
16,957
93,998
18,134
93,941
17,929
94,831
17,830
94,863
19,589
95,600
19,675
97,356
19,129
97,704
20,469
97,895
21,694
98,383
21,971
99,017
22,531
9,810
2,288
37,791
5,442
5,649
9,743
2,470
36,161
6,919
7,855
13,931
2,248
40,667
5,322
8,522
14,484
2,247
41,045
5,168
8,799
14,794
2,244
41,889
5,560
8,893
14,634
2,195
42,092
4,993
9,019
15,092
2,195
42,629
4,983
8,975
15,360
2,177
43,580
6,263
9,670
15,167
2,180
43,541
4,783
10,373
15,667
2,054
43,439
4,580
9,839
15,773
2,071
43,465
5,024
10,257
15,913
2,033
43,122
5,008
10,376
22 Liabilities
175,728
174,197
182,822
183,612
186,041
187,385
189,149
193,535
194,217
195,168
196,944
198,000
73
24
75
76
77
78
29
30
155,110
153,003
49,425
103,578
2,108
10,632
9,986
155,1%
152,777
46,862
%,369
2,419
8,336
9,235
164,848
162,271
39,983
85,445
2,577
7,5%
9,684
165,087
162,600
39,360
86,446
2,487
7,884
9,932
165,887
162,998
39,768
85,603
2,889
9,475
9,879
168,064
165,575
38,485
91,795
2,489
8,779
10,015
169,356
167,006
38,448
93,073
2,350
9,185
10,210
172,665
170,135
38,554
95,129
2,530
10,154
10,368
173,637
171,099
37,999
%,520
2,538
9,932
10,334
174,349
171,935
37,642
%,983
2,414
9,932
10,566
175,909
173,250
37,853
97,230
2,659
10,280
10,384
175,875
173,010
37,329
%,920
2,865
11,211
10,466
1,293
1,285
1,969
2,046
2,023
2,210
2,418
2,387
n.a.
n.a.
n.a.
n.a.
14 Assets
15
16
17
18
19
70
21
Loans
Mortgage
Other
Securities
U.S. government 6
State and local government
Corporate and other 7
Cash
Other assets
Deposits
Regular 8
Ordinary savings
Other
Other liabilities
General reserve accounts
MEMO: Mortgage loan commitments
outstanding 9
n a.
Life insurance companies
31 Assets .
39
40
41
42
Securities
Government
United States 1 0 .
State and local .
Foreign 11
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
•525,803
588,163
633,569
638,826
644,295
647,149
652,904
658,979
663,013
664,677
668,833
25,209
8,167
7,151
9,891
'55,769
>08,099
47,670
137,747
18,278
48,706
40,094
36,499
16,529
8,664
11,306
287,126
231,406
55,720
141,989
20,264
52,% 1
48,571
44,751
22,228
10,504
12,019
316,934
252,397
64,537
145,086
21,690
53,972
51,136
45,700
22,817
10,695
12,188
318,584
253,977
64,607
146,400
21,749
54,063
52,330
46,109
23,134
10,739
12,236
321,568
256,131
65,437
147,356
21,903
54,165
53,194
47,767
24,380
10,791
12,596
320,964
256,332
64,632
148,256
22,141
54,255
53,765
47,170
24,232
10,686
12,252
325,787
260,432
65,355
148,947
22,278
54,362
54,360
49,417
26,364
10,796
12,257
325,015
259,591
65,424
151,599
22,683
54,518
55,747
49,690
26,659
10,673
12,358
329,697
264,430
65,267
151,878
22,700
54,559
54,474
49,711
27,285
10,048
12,378
330,303
266,234
64,069
151,630
23,032
54,631
55,370
50,505
28,267
9,822
12,416
332,342
268,173
64,169
151,968
23,420
54,698
55,900
n a.
n.a.
Credit unions 12
43 Total assets/liabilities and capital
44
Federal
45
State
60,611
69,585
78,846
79,241
80,189
80,419
81,094
81,961
82,287
83,779
86,498
87,204
89,378
39,181
21,430
45,493
24,092
51,859
26,987
52,261
26,980
53,086
27,103
53,297
27,122
53,801
27,293
54,482
27,479
54,770
27,517
55,753
28,026
57,569
28,929
58,127
29,077
59,636
29,742
46 Loans outstanding
47
Federal
48
State
49 Savings
50
Federal (shares)
51
State (shares and deposits)
42,333
27,096
15,237
54,152
35,250
18,902
43,232
27,948
15,284
62,990
41,352
21,638
45,647
29,672
15,975
72,232
47,713
24,519
46,940
30,582
16,358
72,214
47,847
24,367
47,829
31,212
16,617
73,280
48,709
24,571
48,454
31,691
16,763
73,661
49,044
24,617
49,240
32,304
16,936
74,051
49,400
24,651
50,083
32,930
17,153
74,739
49,889
24,850
50,477
33,270
17,207
75,373
50,438
24,935
51,386
33,878
17,508
76,423
51,218
25,205
52,353
34,510
17,843
79,150
52,905
26,245
53,355
35,286
18,069
80,032
53,587
26,445
54,813
36,274
18,539
81,571
54,632
26,939
Federal Finance
1.37
All
Continued
1984
1983
Account
1981
1982
July
Sept.
Aug.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
MayP
FSLIC-insured federal savings banks
6,859
3,353
41,763
26,494
6,890
8,379
46,191
28,086
7,514
10,591
57,496
34,814
9,245
13,437
59,422
35,637
9,587
14,198
61,717
37,166
9,653
14,898
64,969
38,698
10,436
15,835
69,835
41,754
11,243
16,838
72,143
43,371
11,662
17,110
75,555
44,708
12,552
18,295
77,374
45,900
12,762
18,712
78,558
46,532
12,750
19,276
56 Liabilities and net worth
6,859
41,763
46,191
57,496
59,422
61,717
64,969
69,835
72,143
75,555
77,374
78,558
57
58
59
60
61
62
5,877
34,108
5,008
3,131
1,877
919
1,728
37,284
5,445
3,572
1,873
1,142
2,320
47,058
6,598
4,192
2,406
1,089
2,751
48,544
6,775
4,323
2,452
1,293
2,810
50,384
6,981
4,381
2,600
1,428
2,924
53,227
7,477
4,640
2,837
1,157
3,108
57,195
8,048
4,751
3,297
1,347
3,245
59,107
8,088
4,884
3,204
1,545
3,403
61,433
9,213
5,232
3,981
1,360
3,549
62,495
9,707
5,491
4,216
1,548
3,624
62,729
10,402
5,905
4,497
1,728
3,699
52
53
54
55
Assets
Mortgages
Cash and investment securities'
Other
Savings and capital
Borrowed money
FHLBB
Other
Other
Net worth3
MEMO
63 Loans in process 2
64 Mortgage loan committments
outstanding 4
828
934
1,120
1,181
1,222
1,264
1,387
1,531
1,669
1,716
1,781
1,743
1,774
2,130
2,064
2,230
2,151
2,974
2,704
3,253
3,714
3,700
11. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
12. As of June 1982, data include only federal or federally insured state credit
unions serving natural persons.
1. Holdings of stock of the Federal Home Loan Banks are in "other assets."
2. Beginning in 1982, loans in process are classified as contra-assets and are
not included in total liabilities and net worth. Total assets are net of loans in
process.
3. Includes net undistributed income accrued by most associations.
4. Excludes figures for loans in process.
5. The National Council reports data on member mutual savings banks and on
savings banks that have converted to stock institutions, and to federal savings
banks.
6. Beginning April 1979, includes obligations of U.S. government agencies.
Before that date, this item was included in "Corporate and other."
7. Includes securities of foreign governments and international organizations
and, before April 1979, nonguaranteed issues of U.S. government agencies.
8. Excludes checking, club, and school accounts.
9. 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.
10. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
1.38
NOTE. 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 Council of Savings Institutions for
all savings banks in the United States.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for
differences between market and book values are not made on each item separately
but are included, in total, in "other assets."
Credit unions: Estimates by the National Credit Union Administration for a
group of federal and federally insured state credit unions serving natural persons.
Figures are preliminary and revised annually to incorporate recent data.
F E D E R A L F I S C A L A N D F I N A N C I N G OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1981
Fiscal
year
1982
Fiscal
year
1983
1982
HI
1984
1983
H2
HI
Mar.
Apr.
May
U.S. budget
1 Receipts'
2 Outlays'
3 Surplus, or deficit ( - )
4
Trust funds
5
Federal funds 2 3
599,272
657,204
-57,932
6,817
-64,749
617,766
728,375
-110,609
5,456
-116,065
600,562
795,917
-195,355
23,056
-218,410
322,478
348,678
-26,200
-17,690
-43,889
286,338
390,846
-104,508
-6,576
-97,934
306,331
396,477
-90,146
22,680
-112,822
44,464
73,020
-28,556
-2,827
-25,728
80,180
68,687
11,493
5,033
6,459
37,459
71,391
-33,932
3,849
-37,781
Off-budget entities (surplus, or deficit ( —))
6 Federal Financing Bank outlays
7 Other3-4
-20,769
-236
-14,142
-3,190
-10,404
-1,953
-7,942
227
-4,923
-2,267
-5,418
-528
-1,431
-296
-920
262
1,171
-181
-78,936
-127,940
-207,711
-33,914
-111,699
-96,094
-30,282
10,833
-35,284
79,329
134,993
212,425
41,728
119,609
102,538
7,568
17,038
8,604
-1,878
1,485
-11,911
4,858
-9,889
5,176
-408
-7,405
-9,057
1,146
-9,664
3,222
9,415
13,299
-24,772
-3,099
31,023
-4,344
18,670
3,520
15,150
29,164
10,975
18,189
37,057
16,557
20,500
10,999
4,099
6,900
19,773
5,033
14,740
100,243
19,442
72,037
14,054
3,684
10,369
38,204
16,729
21,474
8,182
4,855
3,327
U.S. budget plus off-budget, including
Federal Financing Bank
8 Surplus, or deficit ( - )
Source of financing
9
Borrowing from the public
10
Cash and monetary assets (decrease, or
increase ( - ) ) 4
11
Other5
MEMO
12 Treasury operating balance (level, end of
period)
13
Federal Reserve Banks
14
Tax and loan accounts
1. Effective Feb. 8, 1982, supplemental medical insurance premiums and
voluntary hospital insurance premiums, previously included in other insurance
receipts, have been reclassified as offsetting receipts in the health function.
2. Half-year figures are calculated as a residual (total surplus/deficit less trust
fund surplus/deficit).
3. Other off-budget includes Postal Service Fund; Rural Electrification and
Telephone Revolving Fund; Rural Telephone Bank; and petroleum acquisition
and transportation and strategic petroleum reserve effective November 1981.
4. Includes U.S. Treasury operating cash accounts; SDRs; gold tranche
drawing rights; loans to International Monetary Fund; and other cash and
monetary assets.
5. Includes accrued interest payable to the public; allocations of special
drawing rights; deposit funds; miscellaneous liability (including checks outstanding) and asset accounts; seigniorage; increment on gold; net gain/loss for U.S.
currency valuation adjustment; net gain/loss for IMF valuation adjustment; and
profit on the sale of gold.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government." Treasury Bulletin, and the Budget of the United States Government, Fiscal Year 1985.
A28 DomesticNonfinancialStatistics • July 1984
1.39
U.S. B U D G E T R E C E I P T S A N D O U T L A Y S
Millions of dollars
Calendar year
Source or type
Fiscal
year
1981
Fiscal
year
1982
Fiscal
year
1983
1982
HI
1983
H2
HI
1984
Mar.
Apr.
May
RECEIPTS
1 All sources
2 Individual income taxes, net
3
Withheld
4
Presidential Election Campaign Fund . . .
5
N on withheld
6
Refunds
Corporation income taxes
/
Gross receipts
8
Refunds
9 Social insurance taxes and contributions
net
10
Payroll employment taxes and
contributions 1
11
Self-employment taxes and
contributions 2
12
Unemployment insurance
13
Other net receipts 3
599,272
617,766
600,563
322,478
286,338
306,331
44,464
80,180
37,459
285,917
256,332
41
76,844
47,299
297,744
267,513
39
84,691
54,498
288,938
266,010
36
83,586
60,692
150,565
133,575
34
66,174
49,217
145,676
131,567
5
20,040
5,938
144,550
135,531
30
63,014
54,024
12,895
26,877
9
2,776
16,766
39,192
22,321
5
31,993
15,127
4,333
23,519
8
1,269
20,463
73,733
12,596
65,991
16,784
61,780
24,758
37,836
8,028
25,661
11,467
33,522
13,809
9,441
1,476
11,786
2,691
2,295
2,015
182,720
201,498
209,001
108,079
94,278
110,521
17,702
26,036
26,441
156,932
172,744
179,010
88,795
85,063
90,912
16,704
18,532
17,168
6,041
15,763
3,984
7,941
16,600
4,212
6,756
18,799
4,436
7,357
9,809
2,119
177
6,857
2,181
6,427
11,146
2,1%
433
191
373
4,637
2,501
366
432
8,457
384
40,839
8,083
6,787
13,790
36,311
8,854
7,991
16,161
35,300
8,655
6,053
15,594
17,525
4,310
4,208
7,984
16,556
4,299
3,445
7,891
16,904
4,010
2,883
7,751
2,870
974
523
1,535
3,042
937
505
1,374
3,322
990
550
1,543
18 All types
657,204
728,424
795,917
348,683
390,847
396,477
73,020
68,687
71,391
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology . . .
Energy
Natural resources and environment
Agriculture
159,765
11,130
6,359
10,277
13,525
5,572
187,418
9,982
7,070
4,674
12,934
14,875
210,461
8,927
7,777
4,035
12,676
22,173
93,154
5,183
3,370
2,946
5,636
7,087
100,419
4,406
3,903
2,059
6,940
13,260
105,072
4,705
3,486
2,073
5,892
10,154
19,516
1,180
611
265
861
1,315
18,711
973
685
57
923
1,364
19,955
999
756
119
951
687
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development . . . .
Education, training, employment, social
services
3,946
23,381
9,394
3,865
20,560
7,165
4,721
21,231
7,302
1,408
9,915
3,055
2,244
10,686
4,186
2,164
9,918
3,124
224
1,555
514
-22
1,716
481
2,013
1,798
563
31,402
26,300
25,726
12,607
12,187
12,801
2,172
2,210
2,260
26,858
178,733
85,514
27,435
202,531
92,084
28,6551
223,311>
106,21 lj
150,001 5
172,852
184,207
2,729
20,192
9,791
2,577
19,405
8,677
2,638
19,555
8,498
22,988
4,6%
4,614
6,856
68,726
-16,509
23,955
4,671
4,726
6,393
84,697
-13,270
24,845
5,014
4,991
6,287
89,774
-21,424
112,782
2,334
2,400
3,325
41,883
-6,490
13,241
2,373
2,322
3,152
44,948
-8,333
11,334
2,522
2,434
3,124
42,358
-8,885
3,293
435
585
86
8,592
-824
891
476
265
1,219
9,211
-1,130
2,204
441
558
80
10,235
-2,918
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 4
OUTLAYS
29 Health
30 Social security and medicare
31 Income security
32
33
34
35
36
37
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
N e t interest®
Undistributed offsetting receipts 7
1. Old-age, disability, and hospital insurance, and railroad retirement accounts.
2. Old-age, disability, and hospital insurance.
3. Federal employee retirement contribut ions and civil service retirement and
disability fund.
4. Deposits of earnings by Federal Reserve Banks and other miscellaneous
receipts.
5. In accordance with the Social Security Amendments Act of 1983, the
Treasury now provides social security and medicare outlays as a separate
function. Before February 1984, these outlays were included in the income
security and health functions.
6. Net interest function includes interest received by trust funds.
7. Consists of rents and royalties on the outer continental shelf and U.S.
government contributions for employee retirement.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U . S .
Government" and the Budget of the U.S. Government, Fiscal Year 1985.
Federal Finance All
1.40
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1984
1983
1982
Item
Mar. 31
1 Federal debt outstanding
2 Public debt securities
3
Held by public
4
Held by agencies
5 Agency securities
6
Held by public
7
Held by agencies
8 Debt subject to statutory limit
June 30
1,066.4
1,084.7
Sept. 30
1,147.0
Dec. 31
Mar. 31
Sept. 30
Dec. 31
1,249.3
1,324.3
1,381.9
1,415.3
1,468.3
1,319.6
1,090.3
229.3
1,377.2
1,138.2
239.0
1,410.7
1,174.4
236.3
1,463.7
1,223.9
239.8
1,061.3
858.9
202.4
1,079.6
867.9
211.7
1,142.0
925.6
216.4
1,197.1
987.7
209.4
1,244.5
1,043.3
201.2
5.1
3.9
1.2
5.0
3.9
1.2
5.0
3.7
1.2
4.8
3.7
1.2
4.8
3.7
1.1
4.7
3.6
1.1
4.7
3.6
1.1
4.6
3.5
1.1
4.6
3.5
1.1
1,062.2
1,080.5
1,142.9
1,197.9
1,245.3
1,320.4
1,378.0
1,411.4
1,464.5
1,319.0
1.4
1,376.6
1.3
1,410.1
1.3
1,463.1
1.3
1,389.0
1,389.0
1,490.0
1,490.0
9 Public debt securities
10 Other debt 1
1,060.7
1.5
1,079.0
1.5
1,141.4
1.5
1,196.5
1.4
11 MEMO: Statutory debt limit
1,079.8
1,143.1
1,143.1
1,290.2
1,290.2
1. Includes guaranteed debt of government agencies, specified participation
certificates, notes to international lending organizations, and District of Columbia
stadium bonds.
GROSS PUBLIC DEBT OF U.S. TREASURY
Billions of dollars, end of period
NOTE. Data from Treasury Bulletin (U.S. Treasury Department),
Types and Ownership
1984
1983
Type and holder
1979
1980
1981
1982
Q2
1 Total gross public debt
By type
2 Interest-bearing debt
3 Marketable
4
Bills
5
Notes
6
Bonds
7 Nonmarketable 1
8
State and local government series
9
Foreign issues 2
10
Government
11
Public
12
Savings bonds and notes
13
Government account series 3
Mar. 31
1,201.9
1,243.9
1.4
1.41
June 30
Q4
Q3
Q1
845.1
930.2
1,028.7
1,197.1
1,319.6
1,377.2
1,410.7
1,463.7
844.0
530.7
172.6
283.4
74.7
313.2
24.6
28.8
23.6
5.3
79.9
177.5
928.9
623.2
216.1
321.6
85.4
305.7
23.8
24.0
17.6
6.4
72.5
185.1
1,027.3
720.3
245.0
375.3
99.9
307.0
23.0
19.0
14.9
4.1
68.1
196.7
1,195.5
881.5
311.8
465.0
104.6
314.0
25.7
14.7
13.0
1.7
68.0
205.4
1,318.1
978.9
334.3
527.1
117.5
339.2
33.1
11.4
10.8
6
69.4
225.0
1,375.8
1,024.0
340.7
557.5
125.7
351.8
35.1
11.5
11.5
.0
70.3
234.7
1,400.9
1,050.9
343.8
573.4
133.7
350.0
36.7
10.4
10.4
.0
70.7
231.9
1,452.1
1,097.7
350.2
604.9
142.6
354.4
38.1
9.9
9.9
.0
71.6
234.6
1.2
1.3
1.4
1.6
1.5
1.5
9.8
11.6
15
16
17
18
19
20
21
22
By holder4
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Money market funds
Insurance companies
Other companies
State and local governments
187.1
117.5
540.5
96.4
4.7
16.7
22.9
69.9
192.5
121.3
616.4
116.0
5.4
20.1
25.7
78.8
203.3
131.0
694.5
109.4
5.2
19.1
37.8
85.6
209.4
139.3
848.4
131.4
n.a.
38.7
n.a.
113.4
229.3
141.7
948.6
171.6
28.3
44.8
32.8
n.a.
239.0
155.4
982.7
176.3
22.1
47.3
35.9
n.a.
236.3
151.9
1,022.6
188.8
22.8
48.9
40.2
n.a.
239.8
150.8
1,073.0
189.8
19.4
n.a.
43.1
n.a.
23
24
25
26
Individuals
Savings bonds
Other securities
Foreign and international 5
Other miscellaneous investors 6
79.9
36.2
124.4
90.1
72.5
56.7
127.7
106.9
68.0
75.6
141.4
152.3
68.3
48.2
149.4
233.2
69.7
51.6
160.1
n.a.
70.6
58.4
160.2
n.a.
71.5
61.9
168.9
n.a.
72.2
64.1
166.4
n.a.
14 Non-interest-bearing debt
1. Includes (not shown separately): Securities issued to the Rural Electrification Administration; depository bonds, retirement plan bonds, and individual
retirement bonds.
2. Nonmarketable dollar-denominated and foreign currency-denominated series held by foreigners.
3. Held almost entirely by U.S. government agencies and trust funds.
4. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.
5. Consists of investments of foreign and international accounts. Excludes noninterest-bearing notes issued to the International Monetary Fund.
6. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. government deposit accounts, and U.S. government-sponsored agencies.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly
Statement of the Public Debt of the United States; data by holder. Treasury
Bulletin.
A30
1.42
DomesticNonfinancialStatistics • July 1984
U.S. GOVERNMENT SECURITIES DEALERS
Par value; averages of daily figures, in millions of dollars
Transactions
1984
Item
1981
1982
1984 week ending Wednesday
1983
Apr/
May r
June
May 2'
May y
May 16
May 23
May 30
June 6
1
1
Immediate delivery
U.S. government securities
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
2
3
4
5
6
By type of customer
U.S. government securities
dealers
U.S. government securities
brokers
All others 2
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures transactions 3
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions 4
U.S. government securities
Federal agency securities
/
8
9
10
11
12
13
14
15
16
17
18
24,728
32,271
42,135
45,766
55,011
50,973
40,716
48,611
63,673
51,889
57,583
65,457
14,768
621
4,360
2,451
2,528
18,398
810
6,272
3,557
3,234
22,393
708
8,758
5,279
4,997
24,577
949
8,859
5,783
5,598
29,041
1,162
11,388
6,739
6,682
27,502
1,195
10,594
6,783
4,899
20,890
1,176
9,856
4,057
4,738
25,756
853
10,954
5,350
5,697
30,038
1,172
13,944
8,187
10,333
30,176
1,322
10,186
4,820
5,385
30,391
1,193
12,321
7,697
5,981
34,751
1,347
11,832
11,716
5,811
1,640
1,769
2,257
2,282
2,459
2,268
2,352
2,016
2,852
2,136
2,850
2,716
11,750
11,337
3,306
4,477
1,807
6,128
15,659
15,344
4,142
5,001
2,502
7,595
21,045
18,832
5,576
4,333
2,642
8,036
22,635
20,849
7,214
7,618
3,068
9,858
28,028
24,523
6,568
6,186
3,332
8,868
26,520
22,185
7,065
3,979
3,108
10,027
20,339
18,026
5,975
8,422
2,637
9,343
25,059
21,536
6,499
8,693
3,206
7,961
34,166
26,655
8,584
7,038
3,655
8,775
25,995
23,758
5,221
4,091
3,402
9,487
27,294
27,440
4,884
4,183
3,424
8,747
33,313
29,427
8,268
4,692
3,689
10,480
3,523
1,330
234
5,031
1,490
259
6,655
2,501
265
8,494
3,789
223
11,279
5,506
351
8,171
4,967
381
6,373
3,044
176
10,405
4,509
403
13,867
7,433
253
10,828
5,164
362
11,486
5,868
443
10,871
6,235
367
365
1,370
835
982
1,493
1,646
995
2,952
1,766
3,069
1,683
2,805
1,131
2,648
2,537
3,783
1,735
3,884
1,493
1,922
1,550
2,704
1,601
3,230
from the date of the transaction for government securities (Treasury bills, notes,
and bonds) or after 30 days for mortgage-backed agency issues.
NOTE. Averages for transactions are based on number of trading days in the
period.
Transactions are market purchases and sales of U.S. government securities
dealers reporting to the Federal Reserve Bank of N e w 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.
1. Before 1981, data for immediate transactions include forward transactions.
2. Includes, among others, all other deale rs and brokers in commodities and
securities, nondealer departments of commercial banks, foreign banking agencies,
and the Federal Reserve System.
3. Futures contracts are standardized agreements arranged on an organized
exchange in which parties commit to purchase or sell securities for delivery at a
future date.
4. Forward transactions are agreements arranged in the over-the-counter
market in which securities are purchased (sold) for delivery after 5 business days
1.43
U.S. GOVERNMENT SECURITIES DEALERS
Averages of daily figures, in millions of dollars
Positions and Financing
1984
Item
1981
1982
1984 week ending Wednesday
|
1983
Apr/
May'
June
May 2
May 9
May 16
May 23
May 30
Positions
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Net immediate 1
U.S. government securities
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures positions
Treasury bills
Treasury coupons
Federal agency securities
Forward positions
U.S. government securities
Federal agency securities
9,033
6,485
-1,526
1,488
292
2,294
2,277
3,435
1,746
2,658
9,328
4,837
-199
2,932
-341
2,001
3,712
5,531
2,832
3,317
6,263
4,282
-177
1,709
-78
528
7,172
5,839
3,332
3,159
1,333
2,929
-32
-999
-46
-598
16,649
6,968
3,299
2,797
-9,046
-7,091
-291
50
-939
-865
16,852
6,405
3,183
2.937
-6,362
-2,628
-595
365
-1,339
-2,250
16,003
7,013
3,493
3,969
-4,165
-2,812
-295
560
-777
-921
16,729
7,003
3,592
3,065
-9,467
-7,602
-284
708
-994
-1,388
17,016
7,181
3,719
3,218
-7,972
-8,251
-1
517
-550
221
16,875
6,141
3,499
2,550
-9,173
-6,019
-263
-1,665
-802
-519
16,390
5,968
2,694
2,601
-11,193
-8,021
-541
716
-1,719
-1,713
16,723
6,042
2,611
3,050
-8,934
-2,733
522
-2,508
-2,361
-224
-4,125
-1,032
170
-689
976
79
9,342
1,083
628
2,608
1,867
826
3,631
796
228
6,811
1,035
479
10,369
828
810
11,070
1,308
768
11,525
1,340
620
-603
-451
-788
-1,190
-1,935
-3,561
-1,932
-9,485
-4,588
-10,278
-863
-10,760
-4,407
-9,913
-4,242
-10,879
-5,001
-10,519
-5,559
-9,782
-3,844
-9,711
1
T
45,859
65,412
45,622
66,138
44,056
66,389
48,289
65,554
47,621
65,805
1
T
76,562
52,834
74,193
52,398
72,378
54,450
70,412
57,118
71,484
56,375
Financing 2
Reverse repurchase agreements 3
Overnight and continuing
Term agreements
Repurchase agreements 4
Overnight and continuing
18
19
Term agreements
16
17
For notes see opposite page.
14,568
32,048
26,754
48,247
29,099
52,493
43,525
65,149
46,348
65,921
n.a.
35,919
29,449
49,695
43,410
57,946
44,410
74,563
53,023
72,521
54,881
Federal Finance All
1.44
FEDERAL A N D FEDERALLY SPONSORED CREDIT AGENCIES
Millions of dollars, end of period
Debt Outstanding
1983
Agency
1 Federal and federally sponsored agencies
2 Federal agencies
3
Defense Department 1
4
Export-Import Bank 2 - 3
5
Federal Housing Administration 4
6
Government National Mortgage Association
participation certificates 5
7
Postal Service 6
8
Tennessee Valley Authority
9
United States Railway Association 6
10 Federally sponsored agencies 7
11
Federal Home Loan Banks
12
Federal Home Loan Mortgage Corporation
13
Federal National Mortgage Association
14
Farm Credit Banks
15
Student Loan Marketing Association
1980
1981
1984
1982
Dec.
Jan.
Feb.
Mar.
244,691'
Apr.
May
188,665
221,946
237,085
239,716
239,872
241,628
247,148
252,044
28,606
610
11,250
477
31,806
484
13,339
413
33,055
354
14,218
288
33,940
243
14,853
194
33,919
234
14,852
173
33,785
215
14,846
169
32,800
206
15,347
166
34,273
197
15,344
162
34,231
188
15,344
156
2,817
1,770
11,190
492
2,715
1,538
13,115
202
2,165
1,471
14,365
194
2,165
1,404
14,970
111
2,165
1,404
14,980
111
2,165
1,404
14,875
111
2,165
1,404
14,805
111
2,165
1,404
14,890
111
2,165
1,337
14,930
111
160,059
37,268
4,686
55,182
62,923
(8)
190,140
54,131
5,480
58,749
71,359
421
204,030
55,%7
4,524
70,052
71,896
1,591
205,776
48,930
6,793
74,594
72,409
3,050
205,953
48,344
6,679
74,676
73,023
3,231
207,843
48,224
7,556
75,865
72,856
3,342
211,891
48,594
8,633
77,966
73,180
3,518
212,872
49,786
8,134
78,073
73,130
3,749
217,813
52,281
9,131
79,267
73,138
3,996
87,460
110,698
126,424
135,791
135,940
135,859
137,707
138,769
139,936
10,654
1,520
2,720
9,465
492
12,741
1,288
5,400
11,390
202
14,177
1,221
5,000
12,640
194
14,789
1,154
5,000
13,245
111
14,789
1,154
5,000
13,255
111
14,789
1,154
5,000
13,150
111
15,2%
1,154
5,000
13,080
111
15,2%
1,154
5,000
13,165
111
15,296
1,087
5,000
13,205
111
39,431
9,1%
11,262
48,821
13,516
12,740
53,261
17,157
22,774
55,266
19,766
26,460
54,776
19,927
26,928
54,471
19,982
27,202
55,186
20,186
27,694
55,691
20,413
27,939
56,476
20,456
28,305
MEMO
16 Federal Financing Bank debt
17
18
19
20
21
Lending to federal and federally
sponsored
agencies
Export-Import Bank 3
Postal Service 6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association 6
Other Lending10
22 Farmers Home Administration
23 Rural Electrification Administration
24 Other
1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. I, 1976.
3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing
and Urban Development; Small Business Administration; and the Veterans
Administration.
6. Off-budget.
NOTES TO TABLE 1.43
1. Immediate positions are net amounts (in terms of par values) of securities
owned by nonbank dealer firms and dealer departments of commercial banks on a
commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase (RPs). The maturities of some
repurchase agreements are sufficiently long, however, to suggest that the securities involved are not available for trading purposes. Prior to 1984, securities
owned, and hence dealer positions, do not include all securities acquired under
reverse RPs. After January 1984, immediate positions include reverses to maturity, which are securities that were sold after having been obtained under reverse
repurchase agreements that mature on the same day as the securities. Before
1981, data for immediate positions include forward positions.
7. Includes outstanding noncontingent liabilities: Notes, bonds, and debentures.
8. Before late 1981, the Association obtained financing through the Federal
Financing Bank.
9. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB
incurs debt solely for the purpose of lending to other agencies, its debt is not
included in the main portion of the table in order to avoid double counting.
10. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any
particular agency being generally small. The Farmers Home Administration item
consists exclusively of agency assets, while the Rural Electrification Administration entry contains both agency assets and guaranteed loans.
2. Figures cover financing involving U.S. government and federal agency
securities, negotiable CDs, bankers acceptances, and commercial paper.
3. Includes all reverse repurchase agreements, including those that have been
arranged to make delivery on short sales and those for which the securities
obtained have been used as collateral on borrowings, that is, matched agreements.
4. Includes both repurchase agreements undertaken to finance positions and
"matched book" repurchase agreements.
NOTE. Data for positions are averages of daily figures, in terms of par value,
based on the number of trading days in the period. Positions are shown net and are
on a commitment basis. Data for financing are based on Wednesday figures, in
terms of actual money borrowed or lent.
A32
1.45
DomesticNonfinancialStatistics • July 1984
NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
1983
Type of issue or issuer,
or use
1981
1982
Sept.
1 AU issues, new and refunding 1
1984
1983
Nov.
Oct.
Dec.
Jan.
Feb.'
Mar.'
Apr.
47,732
79,138
86,421
6,172
6,701
5,945
9,833
5,061'
4,537
5,427
5,243
12,394
34
35,338
55
21,094
225
58,044
461
21,566
96
64,855
253
1,266
14
4,906
35
1,951
15
4,750
39
1,730
15
4,215
39
1,153
15
8,680
39
i,i2(y
0
3,941
1
1,829
2
2,708
2
2,495
2
2,932
4
2,216
3
3,027
8
Type of issuer
6 State
7 Special district and statutory authority
8 Municipalities, counties, townships, school districts
5,288
27,499
14,945
8,438
45,060
25,640
7,140
51,297
27,984
452
4,196
1,524
856
4,406
1,439
405
3,358
2,182
204
6,323
3,306
327
3,487'
1,247'
935
2,114
1,488
584
2,964
1,879
885
2,668
1,690
9 Issues for new capital, total
46,530
74,804
72,441
5,526
5,238
5,448
9,405
4,058'
3,953
4,634
4,153
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
4,547
3,447
10,037
12,729
7,651
8,119
6,482
6,256
14,259
26,635
8,349
12,822
8,099
4,387
13,588
26,910
7,821
11,637
529
195
1,238
2,349
490
725
470
250
608
2,599
355
956
406
353
1,122
2,175
584
808
753
438
1,243
2,951
2,945
1,075
391
127
1,914
826
127
673'
348
330
734
1,108
288
1,145
592
53
1,276
1,063
76
1,574
436
539
619
1,020
311
1,228
2
3
4
5
10
11
12
13
14
15
Type of issue
General obligation
U.S. government loans 2
Revenue
U.S. government loans 2
1. Par amounts of long-term issues based on date of sale.
2. Consists of tax-exempt issues guaranteed by the Farmers Home Administration.
1.46
SOURCE. Public Securities Association.
NEW SECURITY ISSUES of Corporations
Millions of dollars
Type of issue or issuer,
or use
1983
1981
1982'
Sept.
1 2
1984
1983'
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
1 All issues '
70,441
84,514
99,003
6,568
6,897
8,103
6,812
7,691
7,629
5,442
6,047
2 Bonds
45,092
53,952
47,424
2,865
3,055
4,075
3,173
5,648
5,250
3,346
4,262
Type of offering
3 Public
4 Private placement
38,103
6,989
44,154
9,798
47,424
n.a.
2,865
n.a.
3,055
n.a.
4,075
n.a.
3,173
n.a.
5,648
n.a.
5,250
n.a.
3,346
n.a.
4,262
n.a.
12,325
5,229
2,052
8,963
4,280
12,243
13,123
5,681
1,474
12,155
2,265
19,255
8,133
5,374
1,086
7,066
3,380
22,385
282
353
0
590
100
1,540
367
114
0
510
50
2,014
22
23
111
910
0
3,009
423
201
105
120
0
2,324
179
976
10
325
210
3,948
452
626
75
385
0
3,712
68
258
180
521
200
2,119
691
1,096
69
495
0
1,911
11 Stocks 3
25,349
30,562
51,579
3,703
3,842
4,028
3,639
2,043
2,379
2,096
1,785
Type
12 Preferred
13 Common
1,797
23,552
5,113
25,449
7,213
44,366
644
3,059
300
3,542
433
3,595
253
3,386
305
1,738
425
1,954
227
1,869
339
1,446
5,074
7,557
779
5,577
1,778
4,584
5,649
7,770
709
7,517
2,227
6,690
14,135
13,112
2,729
5,001
1,822
14,780
962
997
165
200
0
1,379
744
868
305
588
36
1,301
498
1,498
192
622
13
1,145
649
852
413
245
12
1,468
427
465
54
225
30
842
299
616
15
45
20
1,384
387
486
105
134
18
966
165
732
62
188
94
544
5
6
7
8
9
10
14
15
16
17
18
19
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures, which represent gross proceeds of issues maturing in more than one
year, sold for cash in the United States, are principal amount or number of units
multiplied by offering price. Excludes offerings of less than $100,000, secondary
offerings, undefined or exempted issues as defined in the Securities Act of 1933,
employee stock plans, investment companies other than closed-end, intracorporate transactions, and sales to foreigners.
2. Data for 1983 include only public offerings.
3. Beginning in August 1981, gross stock offerings include new equity volume
from swaps of debt for equity.
SOURCE. Securities and Exchange Commission and the Board of Governors of
the Federal Reserve System.
Corporate Finance
1.47
OPEN-END INVESTMENT COMPANIES
Millions of dollars
Net Sales and Asset Position
1984
1983
Item
1982
A33
1983
Nov.
Oct.
Dec.
Jan.
Feb.
Mar.
Apr/
May
INVESTMENT COMPANIES1
1
2
3
Sales of own shares 2
Redemptions of own shares 3
Net sales
45,675
30,078
15,597
84,793
57,120
27,673
6,532
4,264
2,268
6,341
3,920
2,421
6,846
5,946
900
10,274
5,544
4,730
8,233
5,162
3,071
8,857
5,339
3,518
9,549
7,451
2,098
8,657
5,993
2,664
4
5
6
Assets 4
Cash position 5
Other
76,841
6,040
70,801
113,599
8,343
105,256
107,314
8,256
99,058
113,052
9,395
103,657
113,599
8,343
105,256
114,839
8,963
105,876
111,068
9,140
101,928
114,537
10,406
104,131
116,812
10,941
105,871
111,070
10,847
100,223
5. Also includes all U.S. government securities and other short-term debt
securities.
1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment of capital gains distributions and share issue of conversions from one fund to
another in the same group.
3. Excludes share redemption resulting from conversions from one fund to
another in the same group.
4. Market value at end of period, less current liabilities.
1.48
NOTE. Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the
Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1982
Account
1981
1982
1984
1983
1983
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Ql
1 Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
192.3
227.0
82.8
144.1
64.7
79.4
164.8
174.2
59.1
115.1
68.7
46.4
229.2
207.6
76.9
130.6
73.2
57.3
166.8
178.8
61.4
117.4
67.8
49.5
168.5
177.3
60.8
116.5
68.8
47.7
161.9
167.5
54.0
113.5
70.4
43.1
181.8
169.7
61.5
108.2
71.4
36.7
218.2
203.3
76.0
127.2
72.0
55.2
248.4
229.1
84.9
144.1
73.7
70.4
268.2
228.2
85.3
142.9
75.9
67.0
281.6
244.3
92.7
151.6
78.2
73.4
7
8
-23.6
-11.0
-8.3
-1.1
-9.2
30.8
-8.5
-3.5
-9.0
.1
-10.3
4.7
-1.7
13.9
-10.6
25.6
-18.3
37.6
-6.3
46.2
-12.5
49.8
2
3
4
5
6
Inventory valuation
Capital consumption adjustment
SOURCE. Survey of Current Business
(Department of Commerce).
A34
1.49
DomesticNonfinancialStatistics • July 1984
N O N F I N A N C I A L CORPORATIONS
Billions of dollars, except for ratio
Current Assets and Liabilities
1982
Account
1977
1978
1979
1980
1983
1981
Q4
Q1
Q2
Q3
Q4
1 Current assets
912.7
1,043.7
1,214.8
1,327.0
1,419.3
1,425.4
1,437.3
1,465.1
1,522.5
1,561.2
2
3
4
5
6
97.2
18.2
330.3
376.9
90.1
105.5
17.2
388.0
431.8
101.1
118.0
16.7
459.0
505.1
116.0
126.9
18.7
506.8
542.8
131.8
131.8
17.4
530.3
585.1
154.6
144.0
22.4
511.0
575.2
172.6
138.7
26.0
518.4
573.4
180.7
145.0
27.9
535.0
571.0
186.2
148.1
26.6
563.4
590.7
193.7
164.9
30.2
579.0
591.9
195.3
557.1
669.5
807.3
889.3
976.3
977.8
987.1
996.4
1,037.1
1,056.7
317.6
239.6
383.0
286.5
460.8
346.5
513.6
375.7
558.8
417.5
552.8
425.0
542.7
444.4
550.8
445.6
577.3
459.9
598.8
457.9
10 Net working capital
355.5
374.3
407.5
437.8
442.9
447.6
450.2
468.6
485.4
504.6
11 MEMO: Current ratio1
1.638
1.559
1.505
1.492
1.454
1.458
1.456
1.470
1.468
1.477
Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other
7 Current liabilities
8 Notes and accounts payable
9 Other
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, Board of Governors of the Federal Reserve System, Washington, D.C.
20551.
NOTE. For a description of this series, see "Working Capital of Nonfinancial
Corporations" in the July 1978 BULLETIN, pp. 533-37.
SOURCE. Federal Trade Commission and Bureau of the Census.
1.50
T O T A L N O N F A R M B U S I N E S S E X P E N D I T U R E S on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
•
1983
Industry 1
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Commercial and other 2
1982
1983
Ql
Q2
Q3
Q4
Ql
Q2
Q3i
Q41
282.71
269.22
308.98
261.71
261.16
270.05
283.96
293.15
303.79
314.52
324.45
56.44
63.23
51.78
59.75
61.40
67.36
50.74
59.12
48.48
60.31
53.06
58.06
54.85
61.50
58.94
63.84
58.28
67.72
63.39
67.02
65.00
70.86
15.45
11.83
13.97
12.03
10.91
11.93
12.43
13.95
13.32
14.14
14.47
4.38
3.93
3.64
3.92
3.77
3.50
4.90
2.67
4.40
3.35
4.09
3.60
3.64
4.10
3.14
4.07
3.57
3.36
4.63
3.32
3.91
4.41
2.77
4.28
5.12
2.69
4.32
5.40
2.57
4.35
4.67
2.65
4.64
33.40
8.55
93.68
34.99
7.00
92.67
35.58
9.40
109.30
33.97
7.64
87.17
34.86
6.62
89.10
35.84
6.38
93.79
35.31
7.37
100.62
35.74
7.87
101.35
35.12
9.31
107.92
35.38
9.75
112.52
36.07
10.67
115.42
ATrade and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1. Anticipated by business.
1984
1984'
2. "Other" consists of construction; wholesale and retail trade; finance and
insurance; personal and business services; and communication.
SOURCE. Survey of Current Business (Department of Commerce).
Corporate Finance
1.51
DOMESTIC FINANCE COMPANIES
Billions of dollars, end of period
Assets and Liabilities
1984
1983
Account
A35
1979
1978
1981
1980
1982
Q2
Ql
Q4
Q3
Ql
ASSETS
2
3
4
5
6
7
8
Accounts receivable, gross
Consumer
Business
Total
LESS: Reserves for unearned income and l o s s e s . . . .
Accounts receivable, net
Cash and bank deposits
Securities
All other
52.6
63.3
116.0
15.6
100.4
3.5
1.3
17.3
9
Total assets
1
65.7
70.3
136.0
20.0
116.0
73.6
72.3
145.9
23.3
122.6
85.5
80.6
166.1
28.9
137.2
89.5
81.0
170.4
30.5
139.8
89.9
82.2
172.1
29.7
142.4
91.3
84.9
176.2
30.4
145.8
92.3
86.8
179.0
30.1
148.9
92.8
95.2
188.0
30.6
157.4
96.9
101.1
198.0
31.9
166.1
24.9'
27.5
34.2
39.7
42.8
44.3
45.0
45.3
47.1
122.4
140.9
150.1
171.4
179.5
185.2
190.2
193.9
202.7
213.2
6.5
34.5
8.5
43.3
13.2
43.4
15.4
51.2
18.6
45.8
16.6
45.2
16.3
49.0
17.0
49.7
19.1
53.6
14.7
58.4
8.1
43.6
12.6
8.2
46.7
14.2
7.5
52.4
14.3
9.6
54.8
17.8
8.7
63.5
18.7
9.8
64.7
22.8
9.6
64.5
24.0
8.7
66.2
24.4
11.3
65.4
27.1
12.2
68.7
29.8
1
\
J
LIABILITIES
Bank loans
Commercial paper
Debt
Short-term, n.e.c
12
Long-term, n.e.c
13
14
Other
10
11
15
16
Capital, surplus, and undivided profits
Total liabilities and capital
17.2
19.9
19.4
22.8
24.2
26.0
26.7
27.9
26.2
29.4
122.4
140.9
150.1
171.4
179.5
185.2
190.2
193.9
202.7
213.2
1. Beginning Q1 1979, asset items on lines 6, 7, and 8 are combined.
NOTE. Components may not add to totals due to rounding.
1.52
DOMESTIC FINANCE COMPANIES Business Credit
Millions of dollars, seasonally adjusted except as noted
Type
Changes in accounts
receivable
Extensions
Repayments
1984
1984
1984
Accounts
receivable
outstanding
Apr. 3 0 ,
1984'
Feb.
1 Total
2
3
4
5
Retail automotive (commercial vehicles)
Wholesale automotive
Retail paper on business, industrial, and farm equipment
Loans on commercial accounts receivable and factored commercial accounts receivable
6 All other business credit
1. Not seasonally adjusted.
Mar.
Apr.
Feb.
Mar.
Apr.
Feb.
Mar.
Apr.
101,816
1,934
706
818
28,218
26,006
24,643
26,284
25,300
23,825
23,715
17,133
29,125
700
638
568
364
-10
352
466
343
-5
2,157
9,856
1,488
1,878
7,728
1,304
2,002
8,713
1,142
1,457
9,218
920
1,514
7,738
952
1,536
8,370
1,147
10,678
21,165
-117
145
-236
236
-78
92
12,313
2,404
12,709
2,387
10,705
2,081
12,430
2,259
12,945
2,151
10,783
1,989
A36 DomesticNonfinancialStatistics • July 1984
1.53
MORTGAGE M A R K E T S
Millions of dollars; exceptions noted.
1984
1983
1981
Item
1982
1983
Nov.
Jan.
Dec.
Feb.
Mar.
Apr.
May
Terms and yields in primary and secondary markets
PRIMARY M A R K E T S
1
2
3
4
5
6
Conventional mortgages on new homes
Terms'
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount) 2
Contract rate (percent per annum)
90.4
65.3
74.8
27.7
2.67
14.16
94.6
69.8
76.6
27.6
2.95
14.47
92.8
69.6
77.1
26.7
2.40
12.20
98.0
76.7
80.5
26.5
2.54
11.82
94.8
73.3
79.1
27.3
2.56
11.94
7
8
Yield (percent per
FHLBB series 5
H U D series 4
14.74
16.52
15.12
15.79
12.66
13.43
12.34
13.48
16.31
15.29
15.31
14.68
13.11
12.26
13.23
12.51
92.4R
71. V
92.9
71.7
79.2
27.8
2.61
11.80
104.1
77.8
77.8
27.3
2.41
11.78
94.0
73.4
80.4
27.9
2.52
11.56
28.<Y
2.63R
11.55'
94.6
73.3
79.7
27.6
2.61
11.67
12.42
13.41
12.29
13.28
12.23
13.31
12.02
13.57
12.04''
13.77'
12.17
14.38
13.25
12.49
13.08
12.35
13.20
12.31
13.68
12.70
13.80
13.01
15.01
13.67
1
19.2'
annum)
SECONDARY MARKETS
Yield (percent per annum)
5
9 FHA mortgages ( H U D series)
6
1 0 GNMA securities
Activity in secondary markets
F E D E R A L N A T I O N A L MORTGAGE ASSOCIATION
Mortgage holdings (end of
11 Total
12
FHA/VA-insured
13
Conventional
Mortgage transactions
14 Purchases
15
period)
(during
58,675
39,341
19,334
66,031
39,718
26,312
74,847
37,393
37,454
76,714
36,349
40,365
78,256
36,211
42,045
79,049
40,873
38,177
79,350
35,420
43,930
80,974
35,329
45,645
81,956
35,438
46,518
82,697
35,309
47,388
6,112
2
15,116
2
17,554
3,528
1,348
0
2,204
250
1,285
20
1,507
723
2,030
0
1,775
235
1,379
0
9,331
3,717
22,105
7,606
18,607
5,461
997
6,493
1,471
5,461
1,772
5,470
1,930
5,872
1,626
5,333
1,561
5,135
1,233
4,981
5,231
1,065
4,166
5,131
1,027
4,102
5,996
974
5,022
7,093
940
6,153
7,633
941
6,691
8,049
940
7,109
8,566
934
7,632
8,980
929
8,050
9,143
924
8,219
9,224
918
8,306
3,800
3,531
23,673
24,170
23,089
19,686
1,287
1,143
1,685
1,115
1,419
984
1,389
810
1,291
863
983
717
987
829
6,896
3,518
28,179
7,549
32,852
16,964
2,093
16,994
1,704
16,964
1,470
16,994
1,386
16,944
1,874
17,514
1,701
18,183
1,966
19,139
period)
Mortgage
commitments1
16 Contracted (during period)
17 Outstanding (end of period)
F E D E R A L H O M E L O A N MORTGAGE CORPORATION
Mortgage holdings (end of
18 Total
19
FHA/VA
20
Conventional
Mortgage transactions
21 Purchases
22
period)8
(during
Mortgage
commitments9
23 Contracted (during period)
24 Outstanding (end of period)
period)
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Home Loan Bank
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages; from Department of Housing and Urban Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal Housing
Administration-insured first mortgages for immediate delivery in the private
secondary market. Any gaps in data are due to periods of adjustment to changes in
maximum permissible contract rates.
6. Average net yields to investors on Government National Mortgage Association guaranteed, mortgage-backed, fully modified pass-through securities, assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying the
prevailing ceiling rate. Monthly figures are unweighted averages of Monday
quotations for the month.
7. Includes some multifamily and nonprofit hospital loan commitments in
addition to 1- to 4-family loan commitments accepted in FNMA's free market
auction system, and through the F N M A - G N M A tandem plans.
8. Includes participation as well as whole loans.
9. Includes conventional and government-underwritten loans. FHLMC's mortgage commitments and mortgage transactions include activity under mortgage/
securities swap programs, while the corresponding data for F N M A exclude swap
activity.
Real Estate Debt
1.54
MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
1984
1983
Type of holder, and type of property
1981
1982
1983
Ql
1
7
3
4
5
A37
Ail holders
1- to 4-family
Multifamily
Commercial
6 Major financial institutions
7
Commercial banks'
1- to 4-family
8
9
Multifamily
10
Commercial
Farm
11
Q2
Q4
Q3
Ql
1,583,264
1,065,294
136,354
279,889
101,727
1,654,966'
1,105,709'
140,542
302,009
106,706
1,826,395'
1,214,592'
150,949
351,287
109,567
1,681,575'
1,122,056'
141,500
311,107
106,912
1,723,052'
1,146,926'
144,731
323,427
107,968
1,775,117'
1,182,356'
147,052
336,697
109,012
1,826,395'
1,214,592'
150,949
351,287
109,567
1,869,577'
1,246,655'
153,578'
359,220
110,124'
1,040,827
284,536
170,013
15,132
91,026
8,365
1,023,541
300,203
173,157
16,421
102,219
8,406
1,109,963
328,878
181,672
18,023
119,843
9,340
1,028,802
303,371
172,346
16,230
106,301
8,494
1,048,688
310,217
174,032
16,876
110,437
8,872
1,079,605
320,299
178,054
17,424
115,692
9,129
1,109,963
328,878
181,672
18,023
119,843
9,340
1,134,658
337,878
185,833
18,583
123,832
9,630
99,997
68,187
15,960
15,810
40
97,805
66,777
15,305
15,694
29
136,054
96,569
17,785
21,671
29
105,378
73,240
15,587
16,522
29
119,236
84,349
16,667
18,192
28
129,645
92,467
17,588
19,562
28
136,054
%,569
17,785
21,671
29
142,255
101,176
18,341
22,708
30
17
13
14
15
16
Mutual savings banks
1- to 4-family
Multifamily
Commercial
Farm
17
18
19
20
Savings and loan associations
1- to 4-family
Multifamily
Commercial
518,547
433,142
37,699
47,706
483,614
393,323
38,979
51,312
493,432
389,811
42,435
61,186
477,022
384,718
39,259
53,045
474,510
377,947
39,954
56,609
482,305
381,744
41,334
59,227
493,432
389,811
42,435
61,186
502,646
3%,336
43,479
62,831
2.1
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
137,747
17,201
19,283
88,163
13,100
141,919
16,743
18,847
93,501
12,828
151,599
15,385
19,189
104,279
12,746
143,031
16,388
18,825
95,158
12,660
144,725
15,860
18,778
97,416
12,671
147,356
15,534
18,857
100,209
12,756
151,599
15,385
19,189
104,279
12,746
151,879
15,351
19,207
104,621
12,700
126,094
4,765
693
4,072
138,138
4,227
676
3,551
147,370'
3,395'
630'
2,765'
139,973'
3,753'
665'
3,088'
142,094
3,643
651
2,992
142,224
3,475
639
2,836
147,370'
3,395'
630'
2,765'
150,921'
2,900'
618'
2,282'
V
23
24
25
26 Federal and related agencies
27
Government National Mortgage Association
28
1- to 4-family
29
Multifamily
30
31
32
33
34
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
2,235
914
473
506
342
1,786
783
218
377
408
2,141
1,159
173
409
400
2,077
707
380
337
653
1,605
381
555
248
421
600
211
32
113
244
2,141
1,159
173
409
400
2,094
1,005
303
319
467
35
36
37
Federal Housing and Veterans
Administration
1- to 4-family
Multifamily
5,999
2,289
3,710
5,228
1,980
3,248
4,894
1,893
3,001
5,138
1,867
3,271
5,084
1,911
3,173
5,050
2,061
2,989
4,894
1,893
3,001
4,969
1,929
3,040
38
39
40
Federal National Mortgage Association
1- to 4-family
Multifamily
61,412
55,986
5,426
71,814
66,500
5,314
78,256
73,045
5,211
73,666
68,370
5,296
74,669
69,3%
5,273
75,174
69,938
5,236
78,256
73,045
5,211
80,975
75,770
5,205
41
42
43
Federal Land Banks
1- to 4-family
Farm
46,446
2,788
43,658
50,350
3,068
47,282
51,052
3,000
48,052
50,544
3,059
47,485
50,858
3,030
47,828
51,069
3,008
48,061
51,052
3,000
48,052
51,004'
2,982'
48,022'
44
45
46
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
5,237
5,181
56
4,733
4,686
47
7,632
7,559
73
4,795
4,740
55
6,235
6,119
116
6,856
6,799
57
163,000
105,790
103,007
2,783
216,654
118,940
115,831
3,109
285,073
159,850
155,801
4,049
234,596
127,939
124,482
3,457
252,665
139,276
135,628
3,648
272,611
151,597
147,761
3,836
285,073
159,850
155,801
4,049
296,527
166,261
161,943
4,318
19,853
19,501
352
42,964
42,560
404
57,895
57,273
622
48,008
47,575
433
50,934
50,446
488
54,152
53,539
613
57,895
57,273
622
59,422
58,755
667
717
717
14,450
14,450
25,121
25,121
18,157
18,157
20,933
20,933
23,819
23,819
25,121
25,121
28,354
28,354
36,640
18,378
3,426
6,161
8,675
40,300
20,005
4,344
7,011
8,940
42,207
20,404
5,090
7,351
9,362
40,492
20,263
4,344
7,115
8,770
41,522
20,728
4,343
7,303
9,148
43,043
21,083
5,042
7,542
9,376
42,207
20,404
5,090
7,351
9,362
42,490
20,573
5,081
7,456
9,380
253,343
167,297
27,982
30,517
27,547
276,633
185,170
30,755
31,895
28,813
283,989
185,270
32,533
36,548
29,638
278,204
185,479
31,275
32,629
28,821
279,605
185,515
31,868
33,222
29,000
280,677
185,699
31,208
34,352
29,418
283,989
185,270
32,533
36,548
29,638
287,471
187,183
32,940
37,453
29,895
47 Mortgage pools or trusts 2
Government National Mortgage Association
48
49
1- to 4-family
50
Multifamily
51
52
53
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
54
55
Federal National Mortgage Association 3
1- to 4-family
56
57
58
59
60
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
61 Individual and others 4
62
1- to 4-family 5
63
Multifamily
64
Commercial
65
Farm
1. Includes loans held by nondeposit trust companies but not bank trust
departments.
2. Outstanding principal balances of mortgages backing securities insured or
guaranteed by the agency indicated.
3. Outstanding balances on FNMA's issues of securities backed by pools of
conventional mortgages held in trust. Implemented by F N M A in October 1981.
4. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
7,632'
7,559'
73'
8,979'
8,847'
132'
pension funds, credit unions, and U.S. agencies for which amounts are small or
for which separate data are not readily available.
5. Includes estimate of residential mortgage credit provided by individuals.
NOTE. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve in conjunction with the
Federal Home Loan Bank Board and the Department of Commerce. Separation of
nonfarm mortgage debt by type of property, if not reported directly, and
interpolations and extrapolations when required, are estimated mainly by the
Federal Reserve. Multifamily debt refers to loans on structures of five or more
units.
A38
1.55
DomesticNonfinancialStatistics • July 1984
C O N S U M E R I N S T A L L M E N T C R E D I T ' Total Outstanding, and Net ChangeA
Millions of dollars
1983
Holder, and type of credit
1980
1981
1984
1982
Nov.
Oct.
Dec.
Jan.
Feb.
Mar.
Apr.
May
Amounts outstanding (end of period)
1 Total
314,910
335,691
355,849
379,334
384,410
396,082
394,922
399,177
402,466
407,671
418,080
By major holder
Commercial banks
Finance companies . . . .
Credit unions
Retailers 2
Savings and loans
Gasoline companies . . .
Mutual savings b a n k s . .
147,013
76,756
44,041
28,697
9,911
4,468
4,024
147,622
89,818
45,953
31,348
12,410
4,403
4,137
152,490
98,693
47,253
32,735
15,823
4,063
4,792
163,274
102,338
51,767
31,337
20,472
4,243
5,903
165,670
102,560
52,578
32,371
21,023
4,157
6,051
171,978
102,862
53,471
35,911
21,615
4,131
6,114
171,934
101,680
53,882
34,505
21,823
4,300
6,798
175,941
101,702
54,851
33,455
22,269
4,025
6,934
177,625
101,619
55,892
33,208
23,071
3,944
7,107
181,022
101,119
56,962
33,327
23,957
3,955
7,329
186,668
102,967
58,517
33,730
24,915
4,020
7,263
By major type of credit
9 Automobile
10
Commercial b a n k s . . .
11
Indirect paper
12
Direct loans
13
Credit unions
14
Finance companies . .
116,838
61,536
35,233
26,303
21,060
34,242
125,331
58,081
34,375
23,706
21,975
45,275
131,086
59,555
34,755
23,472
22,596
48,935
140,101
64,780
141,107
65,917
142,449
67,557
143,186
68,747
<3)
146,047
71,327
(')
146,047
71,237
147,944
73,016
152,225
75,787
24,759
50,562
25,147
50,043
25,574
49,318
25,771
48,668
26,234
48,486
26,732
48,078
27,244
47,684
27,988
48,450
15 Revolving
16
Commercial b a n k s . . .
17
Retailers
18
Gasoline companies .
58,506
29,765
24,273
4,468
64,500
32,880
27,217
4,403
69,998
36,666
29,269
4,063
72,105
39,774
28,088
4,243
74,032
40,774
29,101
4,157
80,823
44,184
32,508
4,131
78,566
43,118
31,148
4,300
77,671
43,506
30,140
4,025
79,110
45,235
29,931
3,944
80,184
46,149
30,080
3,955
82,436
47,936
30,480
4,020
19 Mobile home
20
Commercial b a n k s . . .
21
Finance companies . .
22
Savings and loans . . .
23
Credit unions
17,321
10,371
3,745
2,737
469
17,958
10,187
4,494
2,788
489
22,254
9,605
9,003
3,143
503
23,358
9,877
9,250
3,682
549
23,492
9,871
9,270
3,793
558
23,680
9,842
9,365
3,906
567
23,668
9,829
9,345
3,923
571
23,571
9,663
9,324
4,003
581
23,661
9,589
9,333
4,147
592
23,850
9,580
9,361
4,306
603
24,104
9,573
9,434
4,478
619
24 Other
25
Commercial b a n k s . . .
26
Finance companies . .
27
Credit unions
28
Retailers
29
Savings and loans . . .
30
Mutual savings banks
122,244
45,341
38,769
22,512
4,424
7,174
4,024
127,903
46,474
40,049
23,490
4,131
9,622
4,137
132,511
46,664
40,755
24,154
3,466
12,680
4,792
143,770
48,843
42,526
26,459
3,249
16,790
5,903
145,779
49,108
43,247
26,873
3,270
17,230
6,051
149,130
50,395
44,179
27,330
3,403
17,709
6,114
149,502
50,240
43,667
27,540
3,357
17,900
6,798
151,888
51,445
43,892
28,036
3,315
18,266
6,934
153,648
51,564
44,208
28,568
3,277
18,924
7,107
155,693
52,277
44,074
29,115
3,247
19,651
7,329
159,315
53,372
45,083
29,910
3,250
20,437
7,263
2
3
4
5
6
7
8
(33)
()
(33)
()
(33)
()
(3)
(3)
(33)
()
(33)
()
(33)
()
Net change (during period) 4
31 Total
1,448
18,217
13,096
5,093
4,819
5,782
4,469
6,608
5,870
6,408
10,233
By major holder
Commercial banks
Finance companies . . . .
Credit unions
Retailers 2
Savings and loans
Gasoline companies . . .
Mutual savings banks . .
-7,163
8,438
-2,475
329
1,485
739
95
607
13,062
1,913
1,103
1,682
-65
-85
4,442
4,504
1,298
651
2,290
-340
251
2,713
470
942
215
437
131
185
2,832
-40
912
318
584
58
155
3,977
-146
731
537
589
-31
126
2,029
-66
916
422
364
72
731
4,914
258
712
325
414
-172
156
3,422
-193
1,230
355
813
2
242
4,025
-350
1,529
278
868
2
66
6,065
1,304
1,453
476
979
46
-90
By major type of credit
39 Automobile
40
Commercial b a n k s . . .
41
Indirect paper
42
Direct loans
43
Credit unions
44
Finance companies . .
477
-5,830
-3,104
-2,726
-1,184
7,491
8,495
-3,455
-858
-2,597
914
11,033
4,898
-9
225
-234
622
3,505
1,709
1,483
1,268
1,257
1,468
1,568
2,106
1,722
2,799
2,635
326
432
2,158
1,766
3,689
2,807
451
-225
436
-425
349
-449
428
-44
276
-112
660
-766
734
-342
695
187
45 Revolving
46
Commercial b a n k s . . .
47
Retailers
48
Gasoline companies .
1,415
-97
773
739
4,467
3,115
1,417
-65
4,365
3,808
897
-340
1,238
875
232
131
1,427
1,040
329
58
1,690
1,207
515
-31
505
18
414
72
1,273
1,127
318
-172
2,962
2,613
347
2
1,868
1,568
298
2
2,817
2,298
473
46
49 Mobile home
50
Commercial b a n k s . . .
51
Finance companies . .
52
Savings and loans . . .
53
Credit unions
483
-276
355
430
-25
1,049
-186
749
466
20
609
-508
471
633
14
-30
23
-158
95
10
-64
-4
-164
94
10
1
39
-166
120
9
-92
-15
-104
18
9
-127
-112
-93
68
10
285
-85
218
141
10
285
27
110
132
16
302
-50
156
183
13
54 Other
55
Commercial b a n k s . . .
56
Finance companies . .
57
Credit unions
58
Retailers
59
Savings and loans . . .
60
Mutual savings banks
-927
-960
592
-1,266
-444
1,056
95
4,206
1,133
1,280
975
-314
1,217
-85
3,224
372
528
662
-246
1,657
251
2,176
332
853
481
-17
342
185
2,188
539
549
466
-11
490
155
2,623
1,163
469
374
22
469
126
1,950
304
82
479
8
346
731
2,662
1,264
463
426
7
346
156
2,298
463
355
558
8
673
242
2,097
653
-118
780
-20
735
66
3,425
1,010
961
745
3
796
-90
32
33
34
35
36
37
38
• These data have been revised from July 1979 through February 1984.
1. The Board's series cover most short- and intermediate-term credit extended
to individuals through regular business channels, usually to finance the purchase
of consumer goods and services or to refinance debts incurred for such purposes,
and scheduled to be repaid (or with the option of repayment) in two or more
installments.
2. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
3. Not reported after December 1982.
(33>
()
(33)
()
(33)
()
(33)
()
(33)
()
(33)
()
(33)
()
(33)
()
4. For 1982 and earlier, net change equals extensions, seasonally adjusted less
liquidations, seasonally adjusted. Beginning 1983, net change equals outstandings,
seasonally adjusted less outstandings of the previous period, seasonally adjusted.
NOTE: Total consumer noninstallment credit outstanding—credit scheduled to
be repaid in a lump sum, including single-payment loans, charge accounts, and
service credit—amounted to, not seasonally adjusted, $79.4 billion at the end of
1981, $84.5 billion at the end of 1982, and $95.5 billion at the end of 1983.
Consumer Debt
1.56
A39
TERMS OF CONSUMER INSTALLMENT CREDIT
Percent unless noted otherwise
1983
Item
1981
1982
1984
1983
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
INTEREST R A T E S
Commercial banks'
f1
3
4
5
6
Auto finance companies
N e w car
Used car
16.54
18.09
17.45
17.78
16.83
18.65
18.05
18.51
13.92
16.68
15.91
18.73
13.46
16.39
15.47
18.75
13.32
16.16
15.45
18.73
16.17
20.00
16.15
20.75
12.58
18.74
13.50
18.16
13.92
18.06
14.18
17.54
14.11
17.59
14.05
17.52
14.06
17.59
14.17
17.60
45.4
35.8
46.0
34.0
45.9
37.9
46.3
38.0
46.3
37.9
46.3
39.5
46.4
39.4
46.7
39.4
47.1
39.5
47.7
39.7
86.1
91.8
85.3
90.3
86.0
92.0
86
93
87
92
88
92
87
91
87
92
88
92
88
92
7,339
4,343
8,178
4,746
8,787
5,033
9,118
5,316
9,167
5,401
9,099
5,392
9,072
5,418
9,139
5,474
9,190
5,547
9,262
5,675
13.53
16.35
15.54
18.71
OTHER TERMS3
7
8
9
10
11
12
Maturity (months)
N e w car
Used car
Loan-to-value ratio
N e w car
Used car
Amount financed (dollars)
N e w car
Used car
1. Data for midmonth of quarter only.
2. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
3. At auto finance companies.
A40
1.57
DomesticNonfinancialStatistics • July 1984
F U N D S R A I S E D I N U.S. CREDIT M A R K E T S
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1981
1978
1979
1980
1982
1983
1981
HI
H2
HI
H2
HI
H2
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors . . . .
By sector and instrument
2 U.S. government
i
Treasury securities
4
Agency issues and mortgages
369.8
386.0
343.2
377.2
395.3
523.3
392.4
362.0
356.8
434.8
504.7
541.9
53.7
55.1
-1.4
37.4
38.8
-1.4
79.2
79.8
-.6
87.4
87.8
-.5
161.3
162.1
-.9
186.6
186.7
-.1
87.8
88.3
-.5
86.9
87.3
-.4
106.9
108.3
-1.4
215.5
215.9
-.4
231.3
231.4
-.1
141.8
141.9
-.1
5 Private domestic nonfinancial sectors
6
Debt capital instruments
7
Tax-exempt obligations
8
Corporate bonds
9
Mortgages
10
Home mortgages
11
Multifamily residential
12
Commercial
13
Farm
316.2
199.7
28.4
21.1
150.2
112.2
9.2
21.7
7.2
348.6
211.2
30.3
17.3
163.6
120.0
7.8
23.9
11.8
264.0
192.0
30.3
26.7
135.1
96.7
8.8
20.2
9.3
289.8
158.4
21.9
22.1
114.5
75.9
4.3
24.6
9.7
234.1
152.4
50.5
18.8
83.0
56.6
1.3
20.0
5.2
336.8
237.6
52.0
14.9
170.7
110.9
8.9
48.0
2.9
304.6
179.3
21.1
26.1
132.0
92.6
4.9
25.2
9.3
275.1
137.5
22.6
18.0
96.9
59.2
3.7
23.9
10.1
249.9
139.7
41.7
10.8
87.3
55.8
4.2
21.4
5.9
219.3
166.1
59.4
26.9
79.9
58.6
-1.7
18.6
4.4
273.4
221.7
60.3
21.1
140.3
92.9
6.3
40.1
1.0
400.1
253.5
43.8
8.6
201.1
128.9
11.6
55.8
4.7
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
116.5
48.8
37.4
5.2
25.1
137.5
45.4
51.2
11.1
29.7
72.0
4.9
36.7
5.7
24.8
131.5
24.1
54.7
19.2
33.4
81.6
18.3
54.4
-3.3
12.2
99.2
51.3
26.1
-1.2
23.0
125.3
28.9
45.5
12.0
38.9
137.6
19.3
63.9
26.3
28.0
110.1
19.3
70.1
6.5
14.3
53.2
17.4
38.8
-13.0
10.2
51.7
35.9
17.3
-16.3
14.9
146.7
66.6
34.9
14.0
31.1
19
20
21
22
23
24
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
316.2
19.1
169.4
14.6
32.4
80.6
348.6
20.5
176.4
21.4
34.4
96.0
264.0
20.3
117.5
14.4
33.7
78.1
289.8
9.7
120.6
16.3
39.6
103.7
234.1
36.3
86.3
9.0
29.8
72.7
336.8
43.7
166.7
3.8
65.0
57.5
304.6
9.1
139.8
20.1
39.8
95.8
275.1
10.2
101.3
12.5
39.5
111.5
249.9
29.3
87.6
9.0
34.6
89.3
219.3
43.3
86.1
9.1
24.9
56.0
273.4
50.7
134.5
-.4
51.4
37.2
400.1
36.7
199.0
7.9
78.7
77.9
25 Foreign net borrowing in United States
26
Bonds
27
Bank loans n.e.c
Open market paper
28
29
U.S. government loans
33.8
4.2
19.1
6.6
3.9
20.2
3.9
2.3
11.2
2.9
27.2
.8
11.5
10.1
4.7
27.2
5.4
3.7
13.9
4.2
15.7
6.6
-6.2
10.7
4.5
17.7
3.6
3.8
6.0
4.3
31.9
3.3
3.1
20.6
4.9
22.5
7.6
4.2
7.1
3.5
12.8
2.4
-5.1
12.5
3.0
18.6
10.8
-7.2
9.0
6.0
18.4
4.4
14.6
-4.6
4.0
17.0
2.9
-7.0
16.5
4.6
403.6
406.2
370.4
404.4
411.0
541.0
424.4
384.5
369.6
453.4
523.1
558.9
30 Total domestic plus foreign
Financial sectors
31 Total net borrowing by financial sectors
By instrument
32 U.S. government related
33
Sponsored credit agency securities
34
Mortgage pool securities
<s
36 Private financial sectors
37
Corporate bonds
38
Mortgages
39
Bank loans n.e.c
40
Open market paper
41
Loans from Federal Home Loan Banks
By sector
42 Sponsored credit agencies
43 Mortgage pools
44 Private financial sectors
45
Commercial banks
46
Bank affiliates
47
Savings and loan associations
48
Finance companies
49
REITs
74.6
82.5
63.3
85.4
69.3
89.8
87.4
83.4
89.8
48.7
75.2
104.4
37.1
23.1
13.6
.4
37.5
7.5
.1
2.8
14.6
12.5
47.9
24.3
23.1
.6
34.6
7.8
47.4
30.5
15.0
1.9
38.0
-.8
-.5
2.2
20.9
16.2
64.9
14.9
49.5
.4
4.4
2.3
.1
3.2
-2.0
.8
67.7
1.4
66.3
49.6
32.1
15.1
2.4
33.8
-1.4
-.2
1.1
18.4
15.8
61.3
23.6
37.0
.8
28.5
-1.2
.1
5.2
14.0
10.4
68.0
-2.4
70.4
67.5
5.3
62.3
-19.7
5.8
.1
1.2
-18.0
-8.8
7.2
15.4
36.9
18.8
-1.0
13.0
-7.0
45.2
28.9
14.9
1.4
42.2
-.3
-.8
3.2
23.5
16.7
68.4
6.3
62.1
-.4
18.0
9.2
44.8
24.4
19.2
1.2
18.5
7.1
-.1
-.4
4.8
7.1
-4.7
9.3
-12.9
2.6
16.6
-1.2
23.5
13.6
37.5
1.3
7.2
13.5
18.1
-1.4
24.8
23.1
34.6
1.6
6.5
12.6
16.6
-1.3
25.6
19.2
18.5
.5
6.9
7.4
6.3
-2.2
32.4
15.0
38.0
.4
8.3
15.5
14.1
.2
15.3
49.5
4.4
1.2
1.9
-3.0
4.9
.1
1.4
66.3
22.0
.5
8.6
-4.2
17.7
.2
30.3
14.9
42.2
.2
6.9
16.8
18.5
.2
34.5
15.1
33.8
.5
9.7
14.1
9.7
.2
24.4
37.0
28.5
.7
9.7
9.1
9.5
.1
6.3
62.1
-19.7
1.7
-5.8
-15.2
.2
.1
-2.4
70.4
7.2
.8
6.1
-12.8
13.7
.2
5.3
62.3
36.9
.2
11.1
4.4
21.7
.2
467.9
134.3
22.6
24.2
96.6
19.3
69.3
51.9
49.7
459.4
167.6
41.7
12.0
87.3
19.3
70.2
33.0
28.4
502.1
284.0
59.4
43.5
79.8
17.4
32.8
-22.1
7.4
598.3
299.4
60.3
40.8
140.2
35.9
27.2
-11.5
6.0
663.3
209.4
43.8
30.3
201.0
66.6
30.6
47.1
34.5
47.0
24.0
23.0
15.8
4.4
2.9
87.2
39.0
48.2
38.2
4.3
5.7
54.1
29.3
24.8
18.4
4.4
2.1
*
22.0
17.1
*
*
*
All sectors
50 Total net borrowing
51
U.S. government securities
52
State and local obligations
53
Corporate and foreign bonds
54
Mortgages
55
Consumer credit
Bank loans n.e.c
56
57
Open market paper
58
Other loans
478.2
90.5
28.4
32.8
150.2
48.8
59.3
26.4
41.9
488.7
84.8
30.3
29.0
163.5
45.4
53.0
40.3
42.4
433.7
122.9
30.3
34.6
134.9
4.9
47.8
20.6
37.8
489.8
133.0
21.9
26.7
113.9
24.1
60.6
54.0
55.8
480.3
225.9
50.5
27.7
83.0
18.3
51.4
5.4
17.9
630.8
254.4
52.0
35.6
170.6
51.3
28.9
17.8
20.2
511.8
131.8
21.1
29.1
131.1
28.9
51.8
56.1
61.8
External corporate equity funds raised in United States
59 Total new share issues
60
Mutual funds
61
All other
62
Nonfinancial corporations
Financial corporations
63
64
Foreign shares purchased in United States
1.9
-.1
1.9
-.1
2.5
-.5
-3.8
.1
-3.9
-7.8
3.2
.8
22.2
5.2
17.1
12.9
2.1
2.1
-3.7
6.8
-10.6
-11.5
.9
*
35.4
18.6
16.8
11.4
4.1
1.3
70.6
34.1
36.5
28.3
4.3
3.9
10.2
8.1
2.1
.9
.5
.7
-17.7
5.6
-23.2
-23.8
1.2
-.7
23.7
13.2
10.6
7.0
3.8
-.2
Flow of Funds
1.58
A41
DIRECT A N D I N D I R E C T S O U R C E S O F F U N D S TO CREDIT M A R K E T S
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates.
1981
Transaction category, or sector
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
1978
1979
1980
1981
1982
1982
1983
1983
HI
H2
HI
H2
HI
H2
369.8
386.0
343.2
377.2
395.3
523.3
392.4
362.0
356.8
434.8
504.7
541.9
102.3
36.1
25.7
12.5
28.0
75.2
-6.3
35.8
9.2
36.5
97.0
15.7
31.7
7.1
42.4
97.4
17.2
23.4
16.2
40.6
109.3
17.9
61.1
.8
29.5
117.2
27.4
76.0
-7.0
20.8
113.8
31.2
21.9
16.7
44.1
81.0
3.1
25.0
15.8
37.1
107.9
17.7
48.1
10.4
31.7
110.8
18.2
74.0
-8.8
27.4
129.1
50.8
80.7
-12.9
10.5
105.2
4.0
71.3
-1.2
31.2
17.1
40.3
7.0
38.0
19.0
53.0
7.7
-4.6
23.7
45.6
4.5
23.2
24.1
48.2
9.2
16.0
16.7
65.3
9.8
17.6
9.7
68.8
10.9
27.8
27.9
47.2
2.4
36.4
20.3
49.2
16.0
-4.4
14.2
62.5
.1
31.1
19.1
68.1
19.5
4.1
8.2
69.1
12.0
39.9
11.2
68.4
9.8
15.7
37.1
33.8
47.9
20.2
44.8
27.2
47.4
27.2
64.9
15.7
67.7
17.7
45.2
31.9
49.6
22.5
61.3
12.8
68.4
18.6
68.0
18.4
67.5
17.0
Private domestic funds
advanced
Total net advances
U.S. government securities
State and local obligations
Corporate and foreign bonds
Residential mortgages
Other mortgages and loans
LESS: Federal Home Loan Bank advances
338.4
54.3
28.4
23.4
95.6
149.3
12.5
379.0
91.1
30.3
18.5
91.9
156.3
9.2
318.2
107.2
30.3
19.3
73.7
94.8
7.1
354.4
115.9
21.9
19.4
56.7
156.9
16.2
366.6
207.9
50.5
15.4
-3.3
96.8
.8
491.6
227.0
52.0
12.7
43.8
149.0
-7.0
355.7
100.6
21.1
20.9
75.5
154.3
16.7
353.1
131.1
22.6
17.9
37.9
159.5
15.8
323.0
149.9
41.7
-1.7
11.7
131.7
10.4
411.0
265.8
59.4
32.4
-17.2
62.0
-8.8
461.9
248.6
60.3
19.9
18.4
101.9
-12.9
521.2
205.4
43.8
5.6
69.2
196.1
-1.2
Private financial intermediation
20 Credit market funds advanced by private financial institutions
21
Commercial banking
22
Savings institutions
23
Insurance and pension funds
24
Other finance
302.3
129.0
72.8
75.0
25.5
294.7
123.1
56.7
66.4
48.5
262.3
101.1
54.9
74.4
32.0
305.2
103.6
27.2
79.3
95.2
271.2
108.5
30.6
94.2
37.9
373.8
132.7
133.6
103.1
4.4
317.3
99.6
41.5
75.3
101.0
293.1
107.6
12.8
83.4
89.4
272.8
109.7
29.5
95.4
38.1
268.9
107.1
31.0
93.0
37.8
353.5
130.0
132.1
107.4
-16.0
394.0
135.5
135.1
98.7
24.8
25 Sources of funds
26
Private domestic deposits and RPs
27
Credit market borrowing
302.3
141.0
37.5
294.7
142.0
34.6
262.3
168.6
18.5
305.2
211.7
38.0
271.2
173.4
4.4
373.8
204.4
22.0
317.3
213.8
42.2
293.1
209.6
33.8
272.8
163.4
28.5
268.9
182.7
-19.7
353.5
219.7
7.2
394.0
189.0
36.9
28
29
30
31
32
123.8
6.5
6.8
62.2
48.4
118.1
27.6
.4
49.1
41.0
75.2
-21.7
-2.6
65.4
34.0
55.5
-8.7
-1.1
73.2
-7.9
93.5
-27.7
6.1
85.9
29.2
147.4
22.4
-5.3
89.8
40.5
61.3
-8.7
6.5
62.7
.8
49.8
-8.7
-8.7
83.8
-16.7
80.8
-30.1
-2.1
85.4
27.6
105.9
-25.4
14.1
86.4
30.7
126.7
-18.0
8.8
93.1
42.8
168.1
62.9
-19.5
86.6
38.1
Private domestic nonfinancial
investors
33 Direct lending in credit markets
34
U.S. government securities
35
State and local obligations
36
Corporate and foreign bonds
37
Open market paper
38
Other
73.6
36.3
3.6
-1.8
15.6
19.9
118.9
61.4
9.9
5.7
12.1
29.8
74.4
38.3
7.0
.6
-4.3
32.9
87.2
47.4
9.6
-8.9
3.7
35.4
99.7
58.1
30.9
-9.4
-2.0
22.1
139.8
89.6
35.9
-3.3
6.6
11.0
80.6
37.2
9.5
-5.5
-3.3
42.7
93.8
57.6
9.7
-12.4
10.7
28.2
78.7
43.1
28.4
-26.3
6.7
26.8
122.4
72.7
33.4
7.4
-10.7
19.6
115.6
88.9
48.2
-19.2
-10.1
7.7
164.0
90.2
23.5
12.6
23.4
14.3
39 Deposits and currency
40
Currency
41
Checkable deposits
42
Small time and savings accounts
43
Money market fund shares
44
Large time deposits
45
Security RPs
46
Deposits in foreign countries
152.2
9.3
16.2
65.9
6.9
44.4
7.5
2.0
151.4
7.9
18.7
59.2
34.4
23.0
6.6
1.5
180.0
10.3
5.0
83.1
29.2
44.7
6.5
1.1
221.7
9.5
18.1
47.2
107.5
36.4
2.5
.5
179.4
8.4
13.0
137.0
24.7
-5.2
3.8
-2.4
222.5
13.6
21.0
220.8
-44.1
-1.9
8.5
4.5
222.6
8.0
29.8
30.7
104.1
41.6
7.7
.8
220.7
11.0
6.5
63.6
110.8
31.2
-2.6
.2
166.2
4.5
6.7
95.1
39.4
21.2
1.1
-1.8
192.1
12.3
19.1
178.6
10.0
-31.6
6.6
-2.9
239.9
14.1
55.4
300.2
-84.0
-63.1
11.0
6.1
205.0
~ 13.2
-13.4
141.4
-4.2
59.2
6.0
2.8
47 Total of credit market instruments, deposits and
currency
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to savings and loans
Other loans and securities
2
3
4
5
6
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
10
Foreign
7
8
9
11
12
N
14
15
16
17
18
19
Agency and foreign borrowing not in line 1
Sponsored credit agencies and mortgage pools
Foreign
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
225.8
270.3
254.4
308.9
279.1
362.3
303.3
314.5
244.9
314.5
355.5
369.1
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
25.3
89.3
44.6
18.5
77.7
23.0
26.2
82.4
1.5
24.1
86.1
7.3
26.6
74.0
-10.2
21.7
76.0
50.2
26.8
89.2
27.8
21.1
83.0
-13.1
29.2
84.4
1.0
24.4
65.4
-21.3
24.7
76.5
21.9
18.8
75.6
78.6
MEMO: Corporate equities not included above
51 Total net issues
52
Mutual fund shares
53
Other equities
1.9
-3.8
22.2
-3.7
35.4
70.6
10.2
-17.7
23.7
47.0
87.2
54.1
-.1
1.9
.1
-3.9
5.2
17.1
6.8
-10.6
18.6
16.8
34.1
36.5
8.1
2.1
5.6
-23.2
13.2
10.6
24.0
23.0
39.0
48.2
29.3
24.8
4.5
-2.7
9.7
-13.5
16.8
5.4
22.1*
-25.9
27.9
7.5
55.3
15.3
25.3
-15.1
18.9
-36.6
19.3
4.4
36.4
10.6
68.4
18.8
42.3
11.9
48
49
50
54 Acquisitions by financial institutions
55 Other net purchases
NOTES BY LINE NUMBER.
1.
2.
6.
11.
13.
18.
26.
27.
29.
30.
31.
Line 1 of table 1.58.
Sum of lines 3 - 6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. Also
sum of lines 28 and 47 less lines 40 and 46.
Includes farm and commercial mortgages.
Line 39 less lines 40 and 46.
Excludes equity issues and investment company shares. Includes line 19.
Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates.
Demand deposits at commercial banks.
Excludes net investment of these reserves in corporate equities.
32. Mainly retained earnings and net miscellaneous liabilities.
33. Line 12 less line 20 plus line 27.
34-38. Lines 14-18 less amounts acquired by private finance. Line 38 includes
mortgages.
40. Mainly an offset to line 9.
47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46.
48. Line 2/line 1.
49. Line 20/line 13.
50. Sum of lines 10 and 29.
51. 53. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
A42
2.10
Domestic Nonfinancial Statistics • July 1984
N O N F I N A N C I A L B U S I N E S S ACTIVITY Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1983
Measure
1981
1982
1984
1983
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.'
May'
June
1 Industrial production
151.0
138.6
147.6
155.0
155.3
156.2
158.5
160.0
160.8
162.2
162.8
163.6
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
150.6
149.5
147.9
151.5
154.4
151.6
141.8
141.5
142.6
139.8
143.3
133.7
149.2
147.1
151.7
140.8
156.6
145.2
155.6
152.7
156.9
147.0
166.5
154.0
155.8
153.2
156.1
149.1
165.5
154.5
157.4
155.2
157.7
151.8
165.4
154.5
159.7
157.5
159.5
154.9
167.8
156.6
160.4
158.0
159.4
156.1
169.0
159.4
161.1
158.6
160.2'
156.4'
170.2'
160.4'
162.5
160.2
161.5
158.3
171.1
161.8
163.3
161.1
162.1
159.8
171.3
162.0
164.1
162.1
162.7
161.2
171.6
162.9
150.4
137.6
148.2
156.2
156.4
156.8
159.5
161.4
162.1'
163.6
164.2
164.8
79.4
80.7
71.1
70.1
75.2
75.2
78.9
79.5
78.8
79.6
78.9
79.6
80.1
80.6
80.9
81.9
81.(y
82.2'
81.6
82.7
81.7
82.7
81.8
82.9
2
i
4
5
6
7
Industry
groupings
8 Manufacturing
Capacity utilization (percent) 1
9
Manufacturing
Industrial materials industries
10
11 Construction contracts (1977 = 100)2
111.0
111.0
138.0
139.0
145.0
134.0
150.0
150.0
144.0
145.0
165.0
n.a.
12
13
14
15
16
17
18
19
20
21
Nonagricultural employment, total 3
Goods-producing, total
Manufacturing, total
Manufacturing, production-worker . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income 4
Retail sales 5
138.5
109.4
103.7
98.0
154.4
386.5
349.7
287.3
373.7
330.6
136.2
102.6
96.9
89.4
154.6
409.3
367.2
286.2
397.3
326.0
136.8
101.5
96.0
88.7
156.1
435.3'
389.8
300.4
426.3
373.0
138.8
102.5
97.1
90.4
158.7
446.4
400.6
310.2
438.8
385.6
139.3
103.2
97.8
91.2
159.1
449.8
401.7
312.8
442.1
389.3
139.9
103.8
98.4
91.9
159.6
453.9
404.2
314.4
446.2
391.4
140.4
104.6
99.0
92.5
160.0
461.4'
409.5
320.4
454.0
407.3
141.1
105.4
99.6
93.1
160.7
464.8'
411.5
323.3
457.4'
403.0
141.4
105.5'
100.1
93.6
161.1
467.3'
413.0
324.9'
460.1'
396.9
142.0
106.2
100.4
94.0
161.6
470.0
418.0
329.2
462.7
410.8
142.4
106.6
100.6
94.1
162.1
472.8
420.0
329.6
465.2
413.0
142.9
107.2
100.9
94.5
162.4
4
n.a.
1
t
416.4
22
23
Prices 6
Consumer
Producer finished goods
272.4
269.8
289.1
280.7
298.4
285.2
302.6
287.6
303.1
286.8
303.5
287.2
305.2
289.5'
306.6
290.6
307.3
291.7
308.8
291.4
309.7
291.5
n.a.
n.a.
1. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, Department of Commerce, and other sources.
2. Index of dollar value of total construction contracts, including residential,
nonresidential and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
3. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
4. Based on data in Survey of Current Business (U.S. Department of Commerce).
2.11
5. Based on Bureau of Census data published in Survey of Current
Business.
6. Data without seasonal adjustment, as published in Monthly Labor
Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5, and 6,
and indexes for series mentioned in notes 3 and 7 may also be found in the Survey
of Current Business.
Figures for industrial production for the last two months are preliminary and
estimated, respectively.
O U T P U T , CAPACITY, A N D CAPACITY UTILIZATION
Seasonally adjusted
1983
1984
1983
1984
1983
1984
series
Q4
Q3
Ql
Q2
Output (1967 = 100)
Q3
Q4
Ql
Q2
Capacity (percent of 1967 output)
Q4
Q3
Ql
Q2
Utilization rate (percent)
1 Total industry
2 Mining
3 Utilities
151.8
116.1
178.2
155.5
121.0
178.4
159.8
124.2
179.2
162.9
124.6
183.5
196.4
165.4
211.1
197.3
165.5
212.4
198.4
165.7
213.8
199.7
165.9
215.3
77.3
70.2
84.4
78.8
73.1
84.0
80.5
75.0
83.8'
81.5
75.1
85.2
4 Manufacturing
i Primary processing
6 Advanced processing
152.8
152.8
152.8
156.5
156.4
156.1
161.0
160.5
161.7'
164.2
162.7
164.7
197.5
195.3
198.6
198.4
195.8
199.7
199.5'
196.5'
201.0
201.0
197.2
203.0
77.4
78.3
76.9
78.9
79.9
78.2
80.7
81.7'
80.3
81.7
82.5
81.1
7 Materials
149.9
154.3
158.8
162.2
193.4
194.0
194.7
195.9
77.5
79.6
81.6
82.8
8 Durable goods
Metal materials
9
10 Nondurable goods
11
Textile, paper, and chemical
Paper
12
13
Chemical
144.2
89.3
179.1
188.0
162.8
227.8
150.3
93.8
183.5
193.2
167.4
235.0
157.6
97.3'
183.7
193.2
165.8'
236.7'
161.9
99.5
186.7
196.3
n.a.
n.a.
196.0
139.8
219.6
231.6
166.9
298.3
196.5
139.6
220.6
232.7
167.7
300.1
197.1
139.1
221.8
234.2
168.5
302.3
198.3
138.5
223.4
236.2
n.a.
n.a.
73.6
63.9
81.5
81.2
97.5
76.4
76.5
67.2
83.2
83.0
99.8
78.3
79.9
70.(K
82.8
82.5
98.4'
78.3'
81.6
71.9
83.5
83.0
n.a.
n.a.
14 Energy materials
127.4
127.8
131.2
132.8
154.7
155.3
155.8
156.4
82.3
82.3
84.2
84.9
Labor Market
2.11
A43
Continued
Previous cycle 1
High
Low
Latest cycle 2
High
Low
1983
June
1983
Nov.
Oct.
1984
Dec.
Jan.
Feb.
Apr.'
Mar.
May'
June
Capacity utilization rate (percent)
15 Total industry
16 Mining
17 Utilities
88.4
91.8
94.9
71.1
86.0
82.0
87.3
88.5
86.7
69.6
69.6
79.0
74.8
68.1
80.8
78.7
71.5
83.3
78.7
73.2
83.0
79.0
74.7
85.7
80.1
75.4
84.8
80.7
74.9
82.5
80.9
74.7
84.0
81.4
74.2
85.1
81.5
75.1
84.7
81.7
75.9
85.8
18 Manufacturing
87.9
69.0
87.5
68.8
74.9
78.9
78.8
78.9
80.1
80.9
81.0
81.6
81.7
81.8
93.7
85.5
68.2
69.4
91.4
85.9
66.2
70.0
75.7
74.4
80.4
77.9
80.0
78.0
79.2
78.6
80.6
80.0
82.2
80.4
82.2
80.6'
82.4
81.0
82.6
81.1
82.5
81.2
21 Materials
22
Durable goods
Metal materials
23
92.6
91.4
97.8
69.3
63.5
68.0
88.9
88.4
95.4
66.6
59.8
46.2
74.4
70.0
61.2
79.5
76.1
68.0
79.6
76.5
66.8
79.6
77.0
66.8
80.6
78.5
67.3
81.9
80.5
71.1
82.2
80.7'
71.5'
82.7
81.6
73.0
82.7
81.5
71.8
82.9
81.7
70.8
24
25
94.4
67.4
91.7
70.7
79.6
84.1
83.8
81.6
81.9
83.0
83.6
83.4
83.6
83.6
26
27
Nondurable goods
Textile, paper, and
chemical
Paper
Chemical
95.1
99.4
95.5
65.4
72.4
64.2
92.3
97.9
91.3
68.6
86.3
64.0
79.2
93.1
75.3
84.1
99.4
79.7
83.7
101.3
79.0
81.2
98.8
76.2
81.5
99.3
76.7
82.8
99.0
78.6
83.1
96.8'
79.5'
82.9
98.5
79.0
83.1
97.0
79.5
83.1
n.a.
n.a.
28
Energy materials
94.5
84.4
88.9
78.5
78.8
81.4
81.8
83.6
84.4
84.1
84.1
84.7
84.5
85.4
Primary processing
Advanced processing . . . .
19
20
1. Monthly high 1973; monthly low 1975.
2.12
2. Monthly highs 1978 through 1980; monthly lows 1982.
LABOR F O R C E , E M P L O Y M E N T , A N D U N E M P L O Y M E N T
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1983
Category
1981
1982
1984
1983
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
HOUSEHOLD SURVEY DATA
1
Noninstitutional population 1
2 Labor force (including Armed Forces) 1
Civilian labor force
3
Employment
4
Nonagricultural industries 2
5
Agriculture
Unemployment
6
Number
7
Rate (percent of civilian labor force) . . .
8 Not in labor force
172,272
174,450
176,414
177,151
177,325
177,733
177,882
178,033
178,185
178,337
178,501
110,812
108,670
112,383
110,204
113,749
111,550
114,235
112,035
114,340
112,136
114,415
112,215
114,896
112,693
115,121
112,912
115,461
113,245
116,017
113,803
116,094
113,877
97,030
3,368
96,125
3,401
97,450
3,383
99,349
3,257
99,585
3,356
99,918
3,271
100,496
3,395
100,859
3,281
101,009
3,393
101,899
3,389
102,344
3,403
8,273
7.6
61,460
10,678
9.7
62,067
10,717
9.6
62,665
9,429
8.4
62,916
9,195
8.2
62,985
9,026
8.0
63,318
8,801
7.8
62,986
8,772
7.8
62,912
8,843
7.8
62,724
8,514
7.5
62,320
8,130
7.1
62,407
91,156
89,596
89,986
91,688
92,026
92,391
92,846
93,058
93,449'
93,718'
94,019
20,170
1,132
4,176
5,157
20,551
5,301
20,547
16,024
18,853
1,143
3,911
5,081
20,401
5,340
19,064
15,803
18,678
1,021
3,949
4,943
20,508
5,456
19,685
15,747
19,018
967
4,073
5,043
21,149
5,530
20,034
15,874
19,143
969
4,086
5,055
21,228
5,546
20,130
15,869
19,254
975
4,154
5,095
21,320
5,573
20,162
15,858
19,373
978
4,226
5,105
21,418
5,593
20,278
15,875
19,466
978
4,151
5,112
21,493'
5,613
20,378
15,873
19,530'
984'
4,246'
5,129'
21,568
5,640
20,449
15,903'
19,569'
993
4,288'
5,142'
21,635'
5,661'
20,538'
15,896'
19,630
997
4,363
5,160
21,709
5,665
20,664
15,836
ESTABLISHMENT SURVEY D A T A
9 Nonagricultural payroll employment 3
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1983
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A44
Domestic Nonfinancial Statistics • July 1984
2.13
INDUSTRIAL PRODUCTION Indexes and Gross Value
Monthly data are seasonally adjusted
n
1967
proportion
1983
1983
avg.
June
July
Aug.
Sept.
1984
Oct.
Nov.
Dec.
Jan.
Feb.
Mar/
Apr.
May?
Index (1967 = 100)
MAJOR M A R K E T
100.00
147.6
146.4
149.7
151.8
153.8
155.0
155.3
156.2
158.5
160.0
160.8
162.2
162.8
60.71
47.82
27.68
20.14
12.89
39.29
149.2
147.1
151.7
140.8
156.6
145.2
148.1
146.4
152.4
138.2
154.5
143.7
150.9
149.0
154.8
141.0
158.1
147.8
153.2
150.7
156.3
143.1
162.2
149.7
154.9
152.1
157.4
144.9
165.3
152.3
155.6
152.7
156.9
147.0
166.5
154.0
155.8
153.2
156.1
149.1
165.5
154.5
157.4
155.2
157.7
151.8
165.4
154.5
159.7
157.5
159.5
154.9
167.8
156.6
160.4
158.0
159.4
156.1
169.0
159.4
161.1
158.6
160.2
156.4
170.2
160.4
162.5
160.2
161.5
158.3
171.1
161.8
163.3
161.1
162.1
159.8
171.3
162.0
7.89
2.83
2.03
1.90
.80
5.06
1.40
1.33
1.07
2.59
147.5
158.2
134.0
117.4
219.6
141.4
116.4
120.1
178.1
139.9
149.2
160.0
135.4
118.3
222.6
143.2
114.4
118.4
185.6
141.3
152.9
167.0
145.4
129.8
221.9
144.9
116.2
119.7
187.3
143.0
154.2
168.1
147.0
132.0
221.8
146.4
121.2
125.0
187.5
143.2
157.4
172.9
153.1
135.0
223.1
148.7
125.2
129.7
186.3
145.9
156.7
171.3
149.2
129.6
227.4
148.4
129.2
133.3
185.5
143.6
155.9
171.5
149.2
129.4
228.2
147.2
127.0
131.3
182.7
143.4
158.6
178.4
157.8
137.4
230.7
147.5
126.3
130.2
184.0
143.9
163.4
184.5
163.3
140.7
238.4
151.5
136.4
140.0
183.1
146.7
162.5
182.1
162.2
140.4
232.6
151.5
135.1
138.6
178.7
149.1
163.1
184.1
164.1
142.4
234.7
151.3
134.4
138.0
180.2
148.5
162.5
180.9
158.4
134.5
238.0
152.2
136.1
138.8
182.2
148.5
162.2
179.7
155.9
132.9
239.9
152.4
134.7
137.4
182.9
149.4
18 Nondurable consumer goods
19
Clothing
20
Consumer staples
•>1
22
Nonfood staples
23
Consumer chemical products
24
Consumer paper products
25
Consumer energy products
26
19.79
4.29
15.50
8.33
7.17
2.63
1.92
2.62
1.45
153.4
153.6
155.6
157.1
157.5
157.1
156.1
157.3
157.9
158.2
159.1
161.1
162.0
163.7
153.5
175.4
231.0
132.7
150.9
173.4
164.3
155.9
174.1
229.0
130.1
151.2
170.5
166.1
156.6
177.2
233.8
132.6
153.2
173.2
168.0
156.3
181.6
239.7
137.4
155.7
179.9
168.0
154.9
183.2
241.5
138.2
157.7
182.8
167.2
156.0
180.3
238.7
137.6
153.0
174.5
165.4
154.5
178.1
232.4
136.6
154.1
175.8
166.0
155.4
178.3
229.9
137.2
156.5
185.2
166.5
156.5
178.2
231.6
138.8
153.4
180.0
166.9
156.8
178.7
231.9
140.3
153.3
172.8
168.0
157.6
180.1
231.3
141.8
156.8
177.7
170.2
160.3
181.7
233.4
144.0
157.3
177.8
171.4
Equipment
2/ Business
28
Industrial
29
Building and mining
30
Manufacturing
31
Power
12.63
6.77
1.44
3.85
1.47
153.3
120.4
159.3
107.1
117.1
150.2
116.3
148.7
105.0
114.1
153.3
119.9
154.4
108.9
114.6
156.6
124.3
159.2
113.3
119.0
158.8
125.6
160.8
115.0
118.8
161.3
126.6
166.9
114.6
118.5
164.1
128.6
175.8
114.3
119.4
167.3
130.8
185.3
115.1
118.4
170.7
133.7
185.1
119.7
120.0
171.9
134.6
182.0
120.9
123.8
172.1
134.8
175.2
124.2
122.7
173.5
135.9
173.6
126.2
124.1
175.4
137.9
181.9
126.6
124.5
5.86
3.26
1.93
.67
191.3
273.2
95.2
69.5
189.5
270.9
93.2
70.4
191.9
276.0
92.0
70.8
194.0
277.4
95.9
70.8
196.7
281.2
97.6
71.0
201.3
288.1
100.0
70.9
205.1
292.5
103.2
73.5
209.6
298.9
106.0
73.5
213.3
303.2
110.1
73.6
215.1
305.9
110.1
75.7
215.3
306.9
109.2
75.0
216.9
309.8
108.9
76.0
218.7
312.4
110.2
74.9
36 Defense and space
7.51
119.9
118.0
120.4
120.2
121.8
122.9
124.0
125.7
128.3
129.5
130.1
132.8
133.6
Intermediate
products
37 Construction supplies
38 Business supplies
39
Commercial energy products
6.42
6.47
1.14
142.5
170.7
184.3
142.1
166.8
181.4
145.8
170.4
185.2
149.0
175.3
186.9
151.1
179.3
190.2
152.3
180.6
187.0
151.6
179.4
187.6
151.5
179.3
188.0
155.5
180.1
192.1
156.6
181.3
191.6
159.1
181.3
187.0
159.9
182.2
190.0
159.7
182.8
189.4
20.35
4.58
5.44
10.34
5.57
138.6
113.6
176.4
129.9
90.2
137.0
109.5
175.8
128.7
89.6
141.1
115.6
180.8
131.5
90.8
144.2
119.9
183.6
134.2
93.1
147.2
123.1
186.0
137.4
94.5
149.4
124.9
188.3
139.8
98.0
150.3
125.0
192.5
139.3
97.1
151.3
127.9
193.4
139.5
96.9
154.6
131.6
198.2
141.8
97.7
158.6
133.1
204.0
146.0
103.0
159.5
133.0
206.7
146.3
103.0
161.6
133.2
210.9
148.2
105.6
161.7
133.5
211.6
147.9
103.9
10.47
174.5
174.3
177.0
178.0
183.4
185.3
184.8
180.3
181.2
184.1
185.9
186.0
186.7
192.0
123.1
165.4
233.1
179.1
132.6
195.4
124.0
166.3
238.7
175.9
131.9
194.7
121.9
169.8
237.0
176.6
130.6
189.6
121.3
166.0
229.3
173.0
129.5
190.5
119.9
167.0
231.3
173.5
130.5
193.9
119.9
166.8
237.6
173.0
135.2
195.3
120.6
163.5
241.1
176.0
137.7
195.5
119.9
166.7
240.5
175.7
138.5
196.2
120.0
164.4
242.7
175.9
139.1
1
Total index
2 Products
3
Final products
4
Consumer goods
5
Equipment
6
Intermediate products
7 Materials
Consumer goods
8 Durable consumer goods
9
Automotive products
10
Autos and utility vehicles
11
Autos
12
Auto parts and allied goods
13
Home goods
14
Appliances, A/C, and TV
15
Appliances and TV
16
Carpeting and furniture
17
Miscellaneous home goods
32
33
34
35
Commercial transit, farm
Commercial
Transit
Farm
Materials
40 Durable goods materials
41
Durable consumer parts
42
Equipment parts
43
Durable materials n.e.c
44
Basic metal materials
45 Nondurable goods materials
46
Textile, paper, and chemical
materials
47
Textile materials
48
Paper materials
49
Chemical materials
50
Containers, nondurable
51
Nondurable materials n.e.c
183.1
235.0
144.9
159.0
7.62
1.85
1.62
4.15
1.70
1.14
182.6
116.2
158.2
221.7
167.9
130.5
182.8
116.0
155.0
223.6
166.1
129.9
186.1
119.0
161.1
225.9
166.5
131.3
186.4
121.5
161.8
225.1
170.6
133.0
52 Energy materials
53
Primary energy
54
Converted fuel materials
8.48
4.65
3.82
124.8
114.7
137.0
121.8
112.6
132.9
127.7
115.4
142.7
128.0
113.9
145.2
126.4
112.8
142.8
126.3
114.1
141.2
127.1
115.5
141.1
130.0
117.6
145.1
131.3
119.3
145.8
131.0
121.3
142.8
131.3
119.6
145.4
132.3
119.3
148.2
132.1
120.2
146.5
Supplementary
groups
55 Home goods and clothing
56 Energy, total
57
Products
58
Materials
9.35
12.23
3.76
8.48
129.9
135.9
161.0
124.8
130.2
133.6
160.4
121.8
132.3
138.5
162.9
127.7
133.3
139.4
165.2
128.0
135.2
139.0
167.5
126.4
135.5
137.7
163.3
126.3
135.9
138.5
164.3
127.1
137.6
141.1
166.0
130.0
140.1
141.6
165.1
131.3
140.3
141.4
164.9
131.0
140.1
141.9
166.0
131.3
141.3
143.0
167.2
132.3
141.2
143.2
168.2
132.1
Output
2.13
Continued
1967
Grouping
SIC
code
portion
1984
1983
1983
avg.
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar/
Apr.
MayP
Index (1967 = 100)
MAJOR I N D U S T R Y
12.05
6.36
5.69
3.88
87.95
35.97
51.98
142.9
116.6
172.4
196.0
148.2
168.1
134.5
139.6
112.6
169.8
192.0
147.4
167.8
133.2
143.8
115.0
176.0
200.9
150.6
170.6
136.8
146.0
116.1
179.3
205.4
152.8
172.9
138.8
146.5
117.1
179.3
204.5
155.1
174.6
141.6
145.8
118.3
176.5
200.7
156.2
175.6
142.8
147.2
121.1
176.3
200.2
156.4
174.8
143.6
151.5
123.7
182.5
208.0
156.8
173.9
145.0
151.4
124.8
181.0
206.8
159.5
175.2
148.6
148.9
124.1
176.5
200.0
161.4
177.2
150.5
150.4
123.8
180.0
204.6
162.1
177.6
151.4
151.3
123.1
182.9
207.9
163.6
179.2
152.8
151.9
124.6
182.5
207.0
164.2
179.9
153.3
10
11.12
13
14
.51
.69
4.40
.75
80.9
136.3
116.6
122.8
82.9
124.6
112.6
121.7
82.5
139.9
113.9
121.2
80.9
141.2
114.7
125.0
78.7
140.5
116.3
126.5
81.0
142.7
117.3
127.4
84.6
144.8
119.8
132.2
82.3
145.2
123.4
133.9
89.4
151.5
123.1
134.8
97.4
163.2
119.6
133.0
100.0
164.0
118.2
135.8
99.8
151.4
118.6
139.4
99.8
153.4
120.5
139.5
8.75
.67
2.68
3.31
3.21
156.4
112.1
140.8
157.7
120.0
141.8
159.9
112.9
146.7
159.3
117.1
147.4
158.2
112.7
148.7
157.6
109.1
148.7
157.1
109.5
145.8
157.7
112.3
145.0
159.4
116.4
143.9
160.0
110.9
142.3
161.2
111.8
143.5
163.0
113.3
141.7
141.5
Paper and products
20
21
22
23
26
164.3
163.0
165.1
168.6
170.4
171.5
172.1
170.1
172.3
176.6
173.8
173.2
171.8
17
18
19
20
21
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products
Leather and products
27
28
29
30
31
4.72
7.74
1.79
2.24
.86
152.5
215.0
120.3
291.9
61.9
147.4
214.7
123.0
293.8
60.1
152.0
218.3
124.3
296.1
62.3
157.8
220.3
123.2
306.9
64.4
161.7
224.1
125.1
310.9
64.2
162.7
228.4
123.6
310.8
64.0
162.0
225.6
125.4
309.1
63.2
161.7
221.1
114.4
314.4
66.0
163.4
221.5
118.8
317.2
61.4
164.8
224.8
127.6
318.5
63.9
165.2
225.0
127.0
323.8
63.9
165.4
228.6
127.8
327.0
63.3
166.5
228.9
129.5
330.8
64.8
22
7,3
24
25
Durable manufactures
Ordnance, private and government . . .
Lumber and products
Furniture and fixtures
Clay, glass, stone products
19.91
24
25
32
3.64
1.64
1.37
2.74
95.4
137.2
170.5
143.4
93.3
137.4
173.1
141.7
95.2
141.3
175.2
145.8
96.8
141.6
179.0
147.9
98.0
142.3
180.7
151.7
98.8
141.7
181.0
151.9
99.3
141.0
177.5
152.7
99.8
143.8
177.9
153.8
99.7
146.0
183.8
157.8
99.6
145.6
185.6
160.4
100.6
149.3
184.6
160.2
101.4
151.2
186.0
161.3
101.9
149.5
185.9
161.8
26
77
28
79
30
Primary metals
Iron and steel
Fabricated metal products
Nonelectrical machinery
Electrical machinery
33
331.2
34
35
36
6.57
4.21
5.93
9.15
8.05
85.4
71.5
120.2
150.6
185.5
84.8
69.7
118.5
149.5
182.4
85.5
71.8
122.7
154.2
188.3
87.5
75.1
126.0
157.3
189.2
90.6
78.2
127.4
158.3
195.8
95.3
84.3
26.9
159.2
198.4
92.2
79.2
128.5
161.8
200.1
90.4
74.1
129.2
164.3
201.5
93.2
80.7
131.7
169.5
206.2
98.4
86.0
132.8
170.9
209.9
97.5
84.4
134.9
171.9
212.0
99.3
84.0
135.8
175.2
214.2
97.6
82.9
137.5
176.5
215.3
37
371
9.27
4.50
117.8
137.1
116.6
136.2
119.7
142.3
121.1
144.3
124.7
150.9
125.5
150.9
127.3
152.9
130.8
158.9
134.9
166.3
135.2
164.4
135.8
165.8
134.6
161.9
135.4
163.0
372-9
38
39
4.77
2.11
1.51
99.6
158.7
146.2
98.1
156.1
151.0
98.5
159.3
153.7
99.2
161.6
153.1
100.0
163.6
151.7
101.6
163.0
149.1
103.2
163.0
148.9
104.3
164.6
149.3
105.3
167.8
151.1
107.7
168.6
152.0
107.5
169.7
152.3
108.8
171.8
152.9
109.4
171.6
153.2
1
7
3
4
5
6
7
8
9
10
11
1?
13
14
1<i
16
Utilities
Mining
Metal
Coal
Oil and gas extraction
Stone and earth minerals
Nondurable
manufactures
Foods
Tobacco products
Textile mill products
31 Transportation equipment
32
Motor vehicles and parts
33
Aerospace and miscellaneous
transportation equipment
34 Instruments
35 Miscellaneous manufactures
Gross value (billions of 1972 dollars, annual rates)
MAJOR M A R K E T
36 Products, total
507.4
612.6
610.5
620.5
626.6
637.0
637.8
638.4
645.4
655.1
656.9
661.8
662.1
37 Final
38
Consumer goods.
39
Equipment
40 Intermediate
390.9
277.5
113.4
116.6
472.6
328.7
144.0
140.0
471.8
330.4
141.4
138.7
478.2
333.7
144.5
142.3
481.8
336.7
145.1
144.8
489.9
341.6
148.4
147.1
490.7
340.2
150.5
147.1
490.8
338.3
152.5
147.6
497.8
341.9
155.9
147.6
505.3
345.3
160.0
149.8
505.0
345.3
159.7
151.9
509.6
347.7
161.9
152.2
509.4
348.0
161.4
152.7
1. 1972 dollar value.
A45
A46
2.14
Domestic Nonfinancial Statistics • July 1984
HOUSING AND CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1984
1983
Item
1981
1982
1983
Sept.
Aug.
Oct.
Nov.
Dec.
Jan.
Feb/
Mar/
Apr/
May
Private residential real estate activity (thousands of units)
N E W UNITS
1 Permits authorized
2
1-family
3
2-or-more-family
986
564
421
1,001
546
454
1,605
902
703
1,671
900
771
1,540
864
676
1,650
905
745
1,649
919
730
1,602
913
689
1,799
989
810
1,902
1,083
819
1,727
974
753
1,758
957
801
1,735
898
837
4 Started
5
1-family
6
2-or-more-family
1,084
705
379
1,062
663
400
1,703
1,068
636
1,873
1,124
749
1,679
1,038
641
1,672
1,017
655
1,730
1,074
656
1,694
1,021
673
1,980
1,301
679
2,262
1,463
799
1,662
1,071
591
1,990
1,191
799
1,782
1,093
689
682
382
301
720
400
320
1,003
524
479
979
544
434
991
545
446
994
542
452
1,011
543
468
1,020
542
478
1,032
552
480
1,033
557
477
1,076
572
496
1.096
584
512
1,266
818
447
1,006
631
374
1,391
924
466
1,716
1,029
687
1,512
1,006
506
1,567
1,028
539
1,445
994
451
1,489
986
503
1,606
1,014
592
1,565
1,034
531
1,590
1,034
556
1,625
971
654
7 Under construction, end of period 1
8
1-family
9
2-or-more-family
10 Completed
11
1-family
12
2-or-more-family
13 Mobile homes shipped
Merchant builder activity in 1-family
14 Number sold
15 Number for sale, end of period 1
Price (thousands
Median
16
Units sold
Average
17
Units sold
of
|
n.a.
1
241
24(K
295
307
305
308
313
310
314
293
287
287
\
436
278
413
255
622
303
558
2%
597
299
624
301
636
304
755
300
681
302
712
303
682
321
640
330
612
335
68.8
69.3
75.5
76.8
81.0
75.9
75.9
75.9
76.2
79.2
78.5
79.4
80.9
83.1
83.8
89.9
91.3
97.8
89.5
91.4
91.7
92.2
94.4
97.8
95.9
101.0
2,418
1,991
2,719
2,760
2,770
2,720
2,700
2,850
2,890
2,910
3,020
3,090
3,050
66.1
78.0
67.7
80.4
69.8
82.5
71.5
84.7
69.9
82.8
69.8
83.0
70.4
83.4
69.9
82.9
71.3
84.8
71.8
84.9
72.2
85.1
72.5
86.1
73.3
86.7
units
dollars)2
EXISTING U N I T S ( 1 - f a m i l y )
18 Number sold
Price of units sold (thousands
19 Median
20 Average
of
2
dollars)
Value of new construction 3 (millions of dollars)''
CONSTRUCTION
262,167
21 Total put in place
239,112 230,068
??
73
74
185,761 179,090 211,369
86,564 74,808 111,727
99,642
99,197 104,282
75
76
77
28
Residential
Nonresidential, total
Buildings
Industrial
Commercial
Other
Public utilities and other
79 Public
30
Military
31
Highway
Conservation and development
3?
Other
33
280,897
300,355 309,744
304,952 310,399
224,694 229,616 219,164 217,444 213,272 229,972
126,841 128,573 118,605 113,455 109,706 121,931
97,853 101,043 100,559 103,989 103,566 108,041
248,104 254,958
137,403 141,087
110,701 113,871
250,620
133,653
116,967
255,235
132,914
122,321
277,965
267,930 267,017
263,867
17,031
34,243
9,543
38,380
17,346
37,281
10,507
39,148
12,863
35,787
11,660
39,332
13,570
36,404
11,839
36,040
12,617
37,173
12,144
39,109
10,363
37,441
12,243
40,512
11,632
38,132
12,028
42,197
12,208
37,364
11,854
42,140
12,872
41,057
12,742
41,370
13,969
42,076
12,999
41,657
14,363
45,280
13,190
41,038
13,705
47,497
13,382
42,383
15,162
50,396
13,706
43,057
53,346
1,966
13,599
5,300
32,481
50,977
2,205
13,428
5,029
30,315
50,798
2,544
14,225
4,822
29,207
53,271
2,380
15,675
5,078
30,138
52,109
2,630
15,092
4,995
29,392
48,766
2,590
14,397
4,041
27,738
49,573
3,064
14,059
3,916
28,534
50,596
2,898
14,666
4,984
28,048
50,925
2,608
14,240
4,319
29,758
52,251
2,474
14,993
4,608
30,176
54,786
2,872
16,205
4,531
31,178
54,331
2,992
16,526
4,537
30,276
55,165
2,860
15,999
5,591
30,715
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly
comparable with data in prior periods because of changes by the Bureau of the
Census in its estimating techniques. For a description of these changes see
Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
281,725
NOTE. Census Bureau estimates for all series except (a) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (b) sales and prices of
existing units, which are published by the National Association of Realtors. All
back and current figures are available from originating agency. Permit authorizations are those reported to the Census Bureau from 16,000 jurisdictions beginning
with 1978.
Prices
2.15
A47
C O N S U M E R A N D P R O D U C E R PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Change from 3 months earlier
(at annual rate)
Change from 1 month earlier
Index
level
May
Item
1983
1983
1984
May
May
1984
1984
=
June
Sept.
Dec.
Mar.
Jan.
Feb.
Mar.
1984
(1967
100)'
May
Apr.
CONSUMER PRICES 2
1
All items
? Food
3 Energy items
4 All items less food and energy
5
Commodities
Services
6
3.5
4.2
5.4
4.5
4.0
5.0
.6
.4
.2
.5
.2
309.7
2.4
4.8
3.6
4.7
2.6
3.1
1.1
5.1
4.9
5.3
1.7
19.1
4.2
3.2
4.8
1.1
3.4
5.9
6.8
5.2
4.3
-1.7
4.9
4.6
5.3
9.0
-1.4
5.1
3.4
5.9
1.6
-.4
.5
.2
.7
.7
.2
.3
.2
.4
-.1
-.2
.4
.4
.4
.0
.7
.5
.6
.5
-.3
.2
.3
.2
.4
301.4
426.1
299.3
252.5
353.3
2.3
.1
1.4
3.3
3.0
2.6
3.7
-.3
2.6
2.7
2.6
-.9
12.9
2.2
1.7
2.0
2.5
-1.3
2.7
2.1
1.1
5.8
-10.4
1.5
1.8
6.0
17.4
-7.2
4.7
4.3
.6
2.6'
-1.2'
.2'
.2
.4
.6'
.6'
.1'
.5
.5
.8
-1.2
.9
.3
.0
-.6
.7
-.1
.3
.0
-1.2
1.5
.1
.2
291.5
272.3
766.4
245.5
294.3
.0
.9
3.4
3.4
2.8
2.8
4.0
3.6
2.5
4.1
2.6
3.5
-.1'
.1'
.2
.2
.5
.6
.1
.1
.3
.1
325.4
303.7
-2.3
.9
1.6
4.2
-.5
12.1
-5.8
-5.1
49.1
15.6
-1.7
16.6
12.1
-2.3
2.4
13.7
-1.3
-9.2
2.2'
.3'
-3.4
-3.C
.1
.8
4.2
-.8
.2
-1.2
.4
2.9
-2.7
.4
2.6
267.2
786.9
277.4
PRODUCER PRICES
7
8
9
10
11
Finished goods
Consumer foods
Consumer energy
Other consumer goods
Capital equipment
12
13
Intermediate materials 3
Excluding energy
Crude materials
Foods
Energy
Other
16
14
IS
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental equivalence measure of homeownership after 1982.
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds,
SOURCE. Bureau of Labor Statistics.
A48
2.16
Domestic Nonfinancial Statistics • July 1984
GROSS N A T I O N A L P R O D U C T A N D I N C O M E
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1983
Account
1981
1982
1984
1983
Ql
Q2
Q3
Q4
Ql'
GROSS N A T I O N A L PRODUCT
1 Total
2,954.1
3,073.0
3,310.5
3,171.5
3,272.0
3,362.2
3,436.2
3,550.1
1,857.2
236.1
733.9
887.1
1,991.9
244.5
761.0
986.4
2,158.0
279.4
804.1
1,074.5
2,073.0
258.5
777.1
1,037.4
2,147.0
277.7
799.6
1,069.7
2,181.1
282.8
814.8
1,083.5
2,230.9
298.6
825.0
1,107.3
2,286.2
315.1
843.2
1,127.9
474.9
456.5
352.2
133.4
218.8
104.3
99.8
414.5
439.1
348.3
141.9
206.4
90.8
86.0
471.9
478.4
348.4
131.1
217.2
130.0
124.9
404.1
443.5
332.1
132.9
199.3
111.3
106.7
450.1
464.6
336.3
127.4
208.8
128.4
123.3
501.1
492.5
351.0
130.9
220.2
141.5
136.3
532.5
512.8
374.0
133.3
240.7
138.8
133.5
604.6
533.5
385.7
140.1
245.6
147.8
142.6
18.4
10.9
-24.5
-23.1
-6.4
-2.8
-39.4
-39.0
-14.5
-10.3
8.5
18.4
19.6
19.7
71.0
50.1
15 Net exports of goods and services
16
Exports
17
Imports
26.3
368.8
342.5
17.4
347.6
330.2
-9.0
335.4
344.4
17.0
326.9
309.9
-8.5
327.1
335.6
-18.3
341.1
359.4
-26.1
346.5
372.6
-48.2
358.8
407.0
18 Government purchases of goods and services
19
Federal
20
State and local
595.7
229.2
366.5
649.2
258.7
390.5
689.5
274.8
414.7
677.4
273.5
404.0
683.4
273.7
409.7
698.3
278.1
420.2
699.0
274.1
424.9
707.6
271.9
435.7
2,935.6
1,291.8
528.0
763.9
1,374.2
288.0
3,097.5
1,280.8
500.8
780.1
1.511.2
281.0
3,316.9
1,366.5
548.7
817.8
1,635.6
308.4
3,210.9
1,292.2
482.7
809.5
1,588.4
290.9
3,286.6
1,346.8
536.8
810.0
1,623.4
301.9
3,353.7
1,388.9
568.9
820.0
1,651.0
322.3
3,416.6
1,438.2
606.4
831.8
1,679.6
318.5
3,479.1
1,498.3
617.3
881.0
1,715.7
336.2
18.4
3.6
14.8
-24.5
-15.5
-9.1
-6.4
-3.9
-2.5
-39.4
-38.2
-1.2
-14.5
-8.9
-5.7
8.5
13.1
-4.5
19.6
18.3
1.4
71.0
22.7
48.3
1,513.8
1,485.4
1,535.3
1,490.1
1,525.1
1,553.4
1,572.5
1,609.3
31 Total
2,373.0
2,450.4
2,650.2
2,528.5
2,612.8
2,686.9
2,772.4
2,883.3
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 income
1,769.2
1,493.2
284.4
1,208.8
276.0
132.5
143.5
1,865.7
1,568.1
306.0
1,262.1
297.6
140.9
156.6
1,990.2
1,664.1
326.2
1,338.4
326.1
152.7
173.4
1,923.7
1,610.6
319.2
1,291.5
313.1
148.8
164.3
1,968.7
1,647.1
323.3
1,323.8
321.6
151.5
170.1
2,011.8
1,681.5
328.4
1,353.1
330.3
153.9
176.4
2,056.6
1,717.3
332.1
1,385.2
339.4
156.7
182.7
2,113.4
1,756.6
339.4
1,417.2
356.8
167.9
189.0
120.2
89.7
30.5
109.0
87.4
21.5
128.5
107.6
20.9
120.6
98.4
22.2
127.2
106.2
21.0
126.7
111.2
15.5
139.4
114.5
25.0
169.3
121.4
47.9
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
2
3
4
5
6 Gross private domestic investment
7
Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures
12
Nonfarm
13
14
21
22
23
24
25
26
Change in business inventories
Nonfarm
By major type of
Final sales, total
Goods
Durable
Nondurable
Services
Structures
product
27 Change in business inventories
28
Durable goods
29
Nondurable goods
30 MEMO: Total GNP in 1972 dollars
N A T I O N A L INCOME
39 Proprietors' income 1
40
Business and professional 1
41
Farm 1
42 Rental income of persons 2
41.4
49.9
54.8
54.1
54.8
53.9
56.2
57.0
43 Corporate profits 1
44
Profits before tax 3
45
Inventory valuation adjustment
46
Capital consumption adjustment
192.3
227.0
-23.6
-11.0
164.8
174.2
-8.4
-1.1
229.1
207.5
-9.2
30.8
181.8
169.7
-1.7
13.9
218.2
203.3
-10.6
25.6
248.4
229.1
-18.3
37.6
268.2
228.2
-6.3
46.2
281.6
244.3
-12.5
49.8
47 Net interest
249.9
261.1
247.5
248.3
243.8
246.1
251.9
262.0
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business
(Department of Commerce).
National Income Accounts
2.17
A49
P E R S O N A L I N C O M E A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1984
1983
Account
1982
1981
1983
Q1
Q2
Q3
Q4
QL'
PERSONAL I N C O M E A N D S A V I N G
1 Total personal income
2,435.0
2,578.6
2,742.1
2,657.7
2,713.6
2,761.9
2,835.2
2,926.2
2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufacturing
5
Distributive industries
6
Service industries
1
Government and government enterprises
1,493.2
509.5
385.3
361.6
337.7
284.4
1,568.1
509.2
383.8
378.8
374.1
306.0
1,664.6
529.7
402.8
397.2
411.5
326.2
1,610.7
508.6
385.4
386.4
396.4
319.2
1,648.4
522.2
397.4
394.3
407.3
324.6
1,681.9
537.8
409.2
398.9
416.4
328.8
1,717.3
550.0
419.0
409.3
425.8
332.1
1,756.4
567.2
433.0
415.3
434.7
339.3
143.5
120.2
89.7
30.5
41.4
62.8
341.3
337.2
182.0
156.6
109.0
87.4
21.5
49.9
66.4
366.2
374.6
204.5
173.4
128.5
107.6
20.9
54.8
70.5
366.3
403.6
222.8
164.3
120.6
98.4
22.2
54.1
68.8
357.2
398.5
217.4
170.1
127.2
106.2
21.0
54.8
69.3
357.1
405.3
221.1
176.4
126.7
111.2
15.5
53.9
70.9
369.9
402.6
223.8
182.7
139.4
114.5
25.0
56.2
72.9
381.1
408.1
228.8
189.0
169.3
121.4
47.9
57.0
75.1
396.3
411.8
233.5
8 Other labor income
9 Proprietors' income 1
10
Business and professional 1
11
Farm1
12 Rental income of persons 2
14 Personal interest income
15 Transfer payments
16
Old-age survivors, disability, and health insurance benefits
17
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
104.6
112.0
119.5
116.5
118.6
120.5
122.5
128.7
2,435.0
2,578.6
2,742.1
2,657.7
2,713.6
2,761.9
2,835.2
2,926.2
387.4
402.1
406.5
401.8
412.6
400.1
411.4
421.3
20 EQUALS: Disposable personal income
2,047.6
2,176.5
2,335.6
2,255.9
2,301.0
2,361.7
2,423.9
2,504.9
21
LESS: Personal outlays
1,912.4
2,051.1
2,222.0
2,134.2
2,209.5
2,245.9
2,298.3
2,356.5
22 EQUALS: Personal saving
135.3
125.4
113.6
121.7
91.5
115.8
125.6
148.4
6,584.1
4,161.5
4,587.0
6.6
6,399.3
4,179.8
4,567.0
5.8
6,552.8
4,316.7
4,672.0
4.9
6,381.5
4,225.7
4,599.0
5.4
6,518.0
4,319.1
4,629.0
4.0
6,622.5
4,331.4
4,690.0
4.9
6,687.5
4,389.8
4,769.0
5.2
6,829.8
4,449.0
4,875.0
5.9
483.8
405.8
439.6
398.5
420.6
455.4
484.0
537.6
509.6
135.3
44.8
-23.6
521.6
125.4
37.0
-8.4
569.9
113.6
78.9
-9.2
541.5
121.7
48.9
-1.7
535.0
91.5
70.1
-10.6
587.2
115.8
89.7
-18.3
615.7
125.6
107.0
-6.3
647.8
148.4
110.7
-12.5
202.9
126.6
.0
222.0
137.2
.0
231.6
145.7
.0
228.3
142.6
.0
229.8
143.5
.0
233.1
148.6
.0
235.2
148.0
.0
238.5
150.2
.0
-26.9
-62.2
35.3
-115.8
-147.1
31.3
-130.2
-181.6
51.4
-142.9
-183.3
40.4
-114.4
-166.1
51.7
-131.8
-187.3
55.5
-131.8
-189.8
58.1
-110.2
-170.7
60.5
19
LESS: Personal tax and nontax payments
MEMO
Per capita (1972 dollars)
23
Gross national product
24
Personal consumption expenditures
25
Disposable personal income
26 Saving rate (percent)
GROSS S A V I N G
27 Gross saving
28
29
30
31
Gross private saving
Personal saving
Undistributed corporate profits 1
Corporate inventory valuation adjustment
Capital consumption
allowances
32 Corporate
33 Noncorporate
34 Wage accruals less disbursements
35 Government surplus, or deficit ( - ) , national income and
product accounts
37
State and local
1.1
.0
.0
.0
.0
.0
.0
.0
39 Gross investment
478.9
406.2
437.4
397.4
417.1
457.9
477.1
530.1
40 Gross private domestic
41 Net foreign
474.9
4.0
414.5
-8.3
471.9
-34.6
404.1
-6.7
450.1
-33.0
501.1
-43.2
532.5
-55.3
604.6
-74.5
-4.9
.5
-2.3
-1.2
-3.5
2.5
-6.7
-7.5
38 Capital grants received by the United States, net
42 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE. Survey of Current Business
(Department of Commerce).
A50
3.10
International Statistics • July 1984
U.S. I N T E R N A T I O N A L T R A N S A C T I O N S Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted.'
1983 R
Item credits or debits
1982'
1981'
Ql
1 Balance on current account
3
4
5
6
7
8
9
10
Merchandise trade balance 2
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net 3
Other service transactions, net
Remittances, pensions, and other transfers
U.S. government grants (excluding military)
1984
1983'
Q2
Q4
Q3
Ql p
6,294
-9,199
-41,563
-2,943
-2,332
-9,560
-8,769
-11,846
-14,498
-17,213
-15,964
-19,408
-18,360
-28,001
237,085
-265,086
-1,116
34,053
8,191
-36,469
211,198
-247,667
195
27,802
7,331
-61,055
200,257
-261,312
515
23,508
4,121
-9,277
49,246
-58,523
790
5,238
1,879
-14,870
48,745
-63,615
53
5,978
1,127
-17,501
50,437
-67,938
-55
7,172
681
-19,407
51,829
-71,236
-273
5,119
434
-25,641
54,164
-79,805
-284
7,619
1,050
-2,382
-4,451
-2,635
-5,423
-2,590
-6,060
-599
-974
-638
-1,210
-665
-1,478
-688
-2,398
-723
-1,429
11 Change in U.S. government assets, other than official
reserve assets, net (increase, —)
-5,107
-6,143
-5,013
-1,130
-1,251
-1,204
-1,429
-1,989
12 Change in U.S. official reserve assets (increase, - )
13
Gold
14
Special drawing rights (SDRs)
15
Reserve position in International Monetary Fund
16
Foreign currencies
-5,175
0
-1,823
-2,491
-861
-4,965
0
-1,371
-2,552
-1,041
-1,196
0
-66
-4,434
3,304
-787
0
-98
-2,139
1,450
16
0
-303
-212
531
529
0
-209
-88
826
-953
0
545
-1,996
498
-657
0
-226
-200
-231
17 Change in U.S. private assets abroad (increase, - ) 3
18
Bank-reported claims
19
Nonbank-reported claims
20
U.S. purchase of foreign securities, net
21
U.S. direct investments abroad, net 3
-100,694
-84,175
-1,181
-5,714
-9,624
-107,790
-111,070
6,626
-8,102
4,756
-43,281
-25,391
-5,333
-7,676
-4,881
-22,447
-18,175
-3,199
-1,866
793
175
3,894
-230
-3,257
-232
-8,548
-2,871
-233
-1,571
-3,873
-12,461
-8,239
-1,671
-983
-1,568
-3,281
-334
n.a.
244
-3,191
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 liabilities 4
26
Other U.S. liabilities reported by U.S. banks
27
Other foreign official assets 5
5,003
5,019
1,289
-300
-3,670
2,665
3,318
5,728
-694
382
-1,747
-351
5,339
6,989
-487
199
433
-1,795
-252
3,012
-371
-533
-1,978
-382
1,739
1,985
-170
434
316
-826
-2,703
-611
-363
137
-1,403
-463
6,555
2,603
417
161
3,498
-124
-2,859
-269
-36
185
-2,140
-599
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, net 3
76,310
42,128
917
2,946
7,171
23,148
91,863
65,922
-2,383
7,062
6,396
14,865
76,383
49,059
-1,318
8,731
8,612
11,299
16,139
10,244
-2,337
2,924
3,003
2,305
10,714
1,698
-64
3,139
2,614
3,327
22,281
14,792
1,311
995
1,861
3,322
27,249
22,325
-228
1,673
1,134
2,345
14,662
9,763
n.a.
1,490
1,547
1,862
34 Allocation of SDRs
35 Discrepancy
1,093
22,275
0
32,916
0
9,331
0
11,420
-579
0
-1,833
439
0
1,491
-2,518
0
-1,748
2,657
0
13,532
-172
22,275
32,916
9,331
11,999
-2,272
4,009
-4,405
13,704
-5,175
-4,965
-1,196
-787
16
529
-953
-657
5,303
2,936
5,140
281
1,305
-2,840
6,394
-3,044
13,581
7,291
-8,639
-1,466
-3,482
-2,051
-1,640
-2,525
675
593
205
42
30
49
84
27
37
Statistical discrepancy in recorded data before seasonal
adjustment
MEMO
Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in the United States
(increase, + )
40 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 22
above)
41 Transfers under military grant programs (excluded from
lines 4, 6, and 10 above)
38
39
1. Seasonal factors are no longer calculated for lines 6, 10. 12-16, 18-20, 22-34,
and 38-41.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing; military
exports are excluded from merchandise data and are included in line 6.
3. Includes reinvested earnings.
4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current
(Department of Commerce).
Business
Trade and Reserve and Official Assets
3.11
A51
U.S. FOREIGN TRADE
Millions of dollars; monthly data are seasonally adjusted.
1983
Item
1981
1982
1984
1983
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May.
1
EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments
2
G E N E R A L IMPORTS including merchandise for immediate consumption plus entries into bonded
warehouses
261,305
243,952
258,048
23,115
22,976
26,586
26,147
26,771
28,368
25,569
3
Trade balance
-27,628
-31,759
-57,562
-6,052
-5,678
-8,260
-8,935
-9,044
-10,846
-7,619
233,677
212,193
200,486
NOTE. The data through 1981 in this table are reported by the Bureau of Census
data of a free-alongside-ship (f.a.s.) value basis—that is, value at the port of
export. Beginning in 1981, foreign trade of the U.S. Virgin Islands is included in
the Census basis trade data; this adjustment has been made for all data shown in
the table. Beginning with 1982 data, the value of imports are on a customs
valuation basis.
The Census basis data differ from merchandise trade data shown in table 3.10,
U.S. International Transactions Summary, for reasons of coverage and timing. On
the export side, the largest adjustments are: (1) the addition of exports to Canada
3.12
17,063
17,298
18,326
17,212
17,727
17,521
17,950
not covered in Census statistics, and (2) the exclusion of military sales (which are
combined with other military transactions and reported separately in the "service
account" in table 3.10, line 6). On the import side, additions are made for gold,
ship purchases, imports of electricity from Canada, and other transactions;
military payments are excluded and shown separately as indicated above.
SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade"
(Department of Commerce, Bureau of the Census).
U.S. RESERVE ASSETS
Millions of dollars, end of period
1983
Type
1980
1981
1984
1982
Nov.
Jan.
Dec.
Feb.
Mar.
Apr
May
1
Total
26,756
30,075
33,958
33,655
33,747
33,887
34,820
34,975
34,585
34,713
2
Gold stock, including Exchange Stabilization Fund 1
11,160
11,151
11,148
11,123
11,121
11,120
11,116
11,111
11,107
11,104
3
Special drawing rights 2,3
2,610
4,095
5,250
5,735
5,025
5,050
5,320
5,341
5,266
5,513
4
Reserve position in International Monetary Fund 2
5
Foreign currencies 4,5
2,852
5,055
7,348
9,883
11,312
11,422
11,707
11,706
11,618
11,666
10,134
9,774
10,212
6,914
6,289
6,295
6,677
6,817
6,594
6,430
1. Gold held under earmark at Federal Reserve Banks for foreign and international accounts is not included in the gold stock of the United States; see table
3.13. Gold stock is valued at $42.22 per fine troy ounce.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through December 1980, 16 currencies were used; from January
1981, 5 currencies have been used. The U.S. SDR holdings and reserve position in
the IMF also are valued on this basis beginning July 1974.
3.13
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus transactions in SDRs.
4. Valued at current market exchange rates.
5. Includes U.S. government securities held under repurchase agreement
against receipt of foreign currencies in 1979 and 1980.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1983
Assets
1980
1984
1982
1981
Jan.
Dec.
1 Deposits
Assets held in custody
2 U.S. Treasury securities 1
3 Earmarked gold 2
Apr.
May
June
411
505
328
190
251
246
222
345
295
238
102,417
14,965
104,680
14,804
112,544
14,716
117,670
14,414
117,076
14,347
119,499
14,291
116,768
14,278
117,808
14,278
114,562
14,268
117,143
14,266
1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
2. Earmarked gold is valued at $42.22 per fine troy ounce.
Mar.
Feb.
NOTE. Excludes deposits and U.S. Treasury securities held for international
and regional organizations. Earmarked gold is gold held for foreign and international accounts and is not included in the gold stock of the United States.
A52
3.14
International Statistics • July 1984
F O R E I G N B R A N C H E S O F U.S. B A N K S
Balance Sheet Data
Millions of dollars, end of period
1983
Oct.
Nov.
1984
Dec.
Jan/
Feb.'
Mar.
Apr.''
All foreign countries
1 Total, all currencies
2 Claims on United States
Parent bank
3
4
Other
5 Claims on foreigners
6
Other branches of parent bank
7
Banks
8
Public borrowers
9
Nonbank foreigners
10 Other assets
11 Total payable in U.S. dollars
12 Claims on United States
Parent bank
13
Other
14
15 Claims on foreigners
16
Other branches of parent bank
17
Banks
Public borrowers
18
Nonbank foreigners
19
20 Other assets
401,135
462,847
469,712
459,327'
463,830'
476,146'
454,759
462,561
480,627
474,296
28,460
20,202
8,258
63,743
43,267
20,476
91,805
61,666
30,139
102,753'
69,911'
32,842
109,714'
75,724'
33,990
115,065'
81,113'
33,952
111,273
76,734
34,539
112,765
79,416
33,349
121,813
86,364
35,449
120,827
85,153
35,674
354,960
77,019
146,448
28,033
103,460
378,954
87,821
150,763
28,197
112,173
358,493
91,168
133,752
24,131
109,442
338,014'
87,551'
117,636'
25,113'
107,714'
335,666'
89,456'
114,507'
24,282'
107,421'
342,271'
92,717'
117,581'
24,445'
107,528'
324,498
86,928
106,880
24,062
106,628
329,920
85,748
110,060
24,589
109,523
338,726
90,703
114,200
24,775
109,048
333,387
92,898
107,278
24,671
108,540
17,715
20,150
19,414
18,56(K
18,450'
18,810'
18,988
19,876
20,088
20,082
291,798
350,735
361,982
351,916'
358,567'
370,935'
349,099
349,998
364,567
358,738
27,191
19,896
7,295
62,142
42,721
19,421
90,085
61,010
29,075
100,194'
68,382'
31,812
107,218'
74,202'
33,016
112,954'
80,018'
32,936
109,170
75,587
33,583
110,520
78,187
32,333
119,411
85,052
34,359
118,348
83,732
34,616
255,391
58,541
117,342
23,491
56,017
276,937
69,398
122,110
22,877
62,552
259,871
73,537
106,447
18,413
61,474
241,387'
69,332'
92,053'
18,696'
61,306'
240,916'
71,460'
90,155'
17,778'
61,523'
247,309'
75,207'
93,257'
17,881'
60,964'
229,364
69,064
82,551
17,762
59,987
229,016
66,790
84,230
17,9%
60,000
235,215
70,940
87,764
18,104
58,407
230,011
70,152
82,922
17,831
59,106
9,216
11,656
12,026
10,335'
10,433'
10,672'
10,565
10,462
9,941
10,379
United Kingdom
21 Total, all currencies
22 Claims on United States
Parent bank
23
24
Other
25 Claims on foreigners
Other branches of parent bank
26
27
Banks
28
Public borrowers
Nonbank foreigners
29
30 Other assets
31 Total payable in U.S. dollars
32 Claims on United States
Parent bank
33
Other
34
35 Claims on foreigners
Other branches of parent bank
36
37
Banks
Public borrowers
38
Nonbank foreigners
39
40 Other assets
144,717
157,229
161,067
156,803
155,964
1.58,732
155,096
157,972
161,007
161,029
7,509
5,275
2,234
11,823
7,885
3,938
27,354
23,017
4,337
30,853
25,507
5,346
32,352
26,872
5,480
34,433
29,111
5,322
35,632
29,757
5,875
36,646
30,875
5,771
38,072
32,201
5,871
38,418
32,855
5,563
131,142
34,760
58,741
6,688
30,953
138,888
41,367
56,315
7,490
33,716
127,734
37,000
50,767
6,240
33,727
120,660
36,556
43,888
6,280
33,936
118,275
35,642
42,683
6,307
33,643
1119,280
36,565
43,352
5,898
33,465
114,287
34,842
40,119
6,063
33,263
116,055
33,296
42,300
6,213
34,246
118,200
34,617
43,804
6,076
33,703
117,643
38,627
39,739
5,990
33,287
6,066
6,518
5,979
5,290
5,337
5,019
5,177
5,271
4,735
4,968
99,699
115,188
123,740
121,817
121,744
1126,012
121,195
121,944
124,501
123,033
7,116
5,229
1,887
11,246
7,721
3,525
26,761
22,756
4,005
30,095
25,084
5,011
31,671
26,537
5,134
33,756
28,756
5,000
34,915
29,412
5,503
35,934
30,515
5,419
37,282
31,789
5,493
37,588
32,453
5,135
89,723
28,268
42,073
4,911
14,471
99,850
35,439
40,703
5,595
18,113
92,228
31,648
36,717
4,329
19,534
88,253
31,414
31,796
4,346
20,697
86,614
30,371
31,158
4,377
20,708
88,917
31,838
32,188
4,194
20,697
83,161
29,741
28,749
4,356
20,315
83,067
28,103
30,158
4,414
20,392
84,599
28,723
31,613
4,390
19,873
82,638
29,299
29,085
4,304
19,950
2,860
4,092
4,751
3,469
3,459
3,339
3,119
2,943
2,620
2,807
Bahamas and Caymans
41 Total, all currencies
42 Claims on United States
43
Parent bank
Other
44
45 Claims on foreigners
46
Other branches of parent bank
47
Banks
48
Public borrowers
Nonbank foreigners
49
50 Other assets
51 Total payable in U.S. dollars
123,837
149,108
145,156
141,557'
147,457'
151,532'
141,573
140,198
149,165
144,505
17,751
12,631
5,120
46,546
31,643
14,903
59,403
34,653
24,750
66,49^
40,351'
26,148
71,563'
44,614'
26,949
74,832'
47,807'
27,025
70,739
43,454
27,285
70,706
44,474
26,232
77,807
50,146
27,661
75,446
47,569
27,877
101,926
13,342
54,861
12,577
21,146
98,057
12,951
55,151
10,010
19,945
81,450
18,720
42,699
6,413
13,618
71,268
15,817
35,964
6,643
12,844
71,995
17,993
35,353
5,890
12,759
72,788
17,340
36,767
6,084
12,597
66,916
15,989
32,451
5,992
12,484
65,609
14,657
32,525
5,956
12,471
67,422
15,265
34,295
6,028
11,834
65,152
14,811
32,231
5,983
12,127
4,160
4,505
4,303
117,654
143,743
139,605
3,790
134,930'
3,899
141,041'
3,912'
3,918
3,883
3,936
3,907
145,086'
135,161
133,826
142,653
138,105
Overseas Branches
3.14
A53
Continued
1983
Oct.
Nov.
1984
Dec.
Jan.
Feb.
Mar.
Apr .P
All foreign countries
52 Total, all currencies
51 To United States
Parent bank
54
55
Other banks in United States
Nonbanks
56
57 To foreigners
Other branches of parent bank
58
59
Banks
Official institutions
60
Nonbank foreigners
61
62 Other liabilities
63 Total payable in U.S. dollars
64 To United States
65
Parent bank
66
Other banks in United States
67
Nonbanks
68 To foreigners
69
Other branches of parent bank
Banks
70
Official institutions
71
Nonbank foreigners
72
73 Other liabilities
401,135
462,847
469,712
459,327'
463,830'
476,146'
454,759'
462,561'
480,627
474,296
91,079
39,286
14,473
37,275
137,767
56,344
19,197
62,226
179,015
75,621
33,405
69,989
185,797'
85,274'
27,036
73,487
184,402'
79,774'
26,202
78,426
187,552'
80,530'
29,107
77,915
179,536'
77,126'
26,660
75,750
182,575
79,205
25,644'
77,726'
187,558
77,483
28,805
81,270
183,907
75,487
26,810
81,610
295,411
75,773
132,116
32,473
55,049
305,630
86,396
124,906
25,997
68,331
270,853
90,191
96,860
19,614
64,188
254,866'
84,004
84,542'
19,403
66,917'
260,495'
86,792
88,037'
18,377
67,289'
269,275'
89,047
92,802'
18,824
68,602'
256,284'
82,126
86,566'
19,517
68,075'
260,551'
81,834
89,084'
20,499
69,134'
273,029
87,222
95,690
18,250
71,867
270,223
90,912
90,180
17,882
71,249
14,690
19,450
19,844
18,664'
18,933'
19,3^
18,939'
19,435'
20,040
20,166
303,281
364,447
379,270
370,369'
374,789'
387,722'
365,804'
367,442'
381,977
374,800
88,157
37,528
14,203
36,426
134,700
54,492
18,883
61,325
175,528
73,295
33,040
69,193
181,891'
82,907'
26,480
72,504
180,406'
77,327'
25,711
77,368
183,837'
78,328'
28,573
76,936
175,1W
74,774'
26,166
74,776
178,260
76,611
25,077'
76,572'
183,262
74,892
28,219
80,151
179,594
73,061
26,223
80,310
206,883
58,172
87,497
24,697
36,517
217,602
69,299
79,594
20,288
48,421
192,510
72,921
57,463
15,055
47,071
179,127'
66,502
48,273'
14,630
49,722'
184,438'
69,457
52,086'
13,453
49,442'
194,038'
72,002
57,015'
13,852
51,169'
181,074'
65,028
50,606'
14,673
50,767'
180,071'
63,480
50,683'
15,835
50,073'
189,490
68,557
56,202
13,161
51,570
185,102
69,028
50,884
13,347
51,843
8,241
12,145
11,232
9,351'
9,945'
9,847'
9,014'
9,111'
9,225
10,104
United Kingdom
74 Total, all currencies
75 To United States
Parent bank
76
Other banks in United States
77
Nonbanks
78
79 To foreigners
Other branches of parent bank
80
81
Banks
Official institutions
82
Nonbank foreigners
83
144,717
157,229
161,067
156,803
155,964
158,732
155,096'
157,972'
161,007
161,029
21,785
4,225
5,716
11,844
38,022
5,444
7,502
25,076
53,954
13,091
12,205
28,658
60,903
21,385
10,751
28,767
57,095
17,312
10,176
29,607
55,799
14,021
11,328
30,450
55,618'
17,075'
10,640
27,903
56,55C
18,307'
10,570
27,673
56,344
15,850
11,556
28,938
56,461
16,246
10,542
29,673
117,438
15,384
56,262
21,412
24,380
112,255
16,545
51,336
16,517
27,857
99,567
18,361
44,020
11,504
25,682
88,727
18,288
35,847
10,611
23,981
91,714
18,841
38,888
10,071
23,914
95,847
19,038
41,624
10,151
25,034
92,268
18,526
38,812
10,530
24,400
93,734
17,741
39,548
11,531
24,914
%,993
21,477
42,073
8,833
24,610
97,056
21,914
40,765
9,403
24,974
5,494
6,952
7,546
7,173
7,155
7,086
7,670
7,512
103,440
120,277
130,261
128,600
127,234
131,167
126,987'
127,622'
130,985
128,228
86 To United States
Parent bank
87
Other banks in United States
88
Nonbanks
89
21,080
4,078
5,626
11,376
37,332
5,350
7,249
24,733
53,029
12,814
12,026
28,189
59,824
21,145
10,523
28,156
55,907
17,094
9,880
28,933
54,691
13,839
11,044
29,808
54,535'
16,838'
10,406
27,291
55,105'
10,247
26,958
55,147
15,606
11,320
28,221
55,136
16,062
10,292
28,782
90 To foreigners
Other branches of parent bank
91
Banks
92
93
Official institutions
Nonbank foreigners
94
79,636
10,474
35,388
17,024
16,750
79,034
12,048
32,298
13,612
21,076
73,477
14,300
28,810
9,668
20,699
65,347
14,542
23,136
8,742
18,927
68,011
15,044
26,343
8,029
18,595
73,279
15,403
29,320
8,279
20,277
69,557
14,758
26,386
8,594
19,819
69,438
13,956
26,229
9,777
19,476
72,776
17,559
28,833
6,910
19,474
69,672
14,729
27,2%
7,650
19,997
2,724
3,911
3,755
3,429
3,316
3,197
2,895
3,079
3,062
3,420
84 Other liabilities
85 Total payable in U.S. dollars
95 Other liabilities
7,210
7,688
17,90c
Bahamas and Caymans
123,837
149,108
145,156
141,557'
147,457'
151,532'
141,57y
140,198
149,165
144,505
97 To United States
Parent bank
98
Other banks in United States
99
100 Nonbanks
59,666
28,181
7,379
24,106
85,759
39,451
10,474
35,834
104,425
47,081
18,466
38,878
104,3%'
48,481'
14,322
41,593
106,833'
46,876'
14,117
45,840
110,831'
50,256'
15,711
44,864
104,176'
44,884'
14,401
44,891
104,552
44,186
13,544'
46,822'
109,981
45,398
15,636
48,947
106,672
43,211
14,867
48,594
101 To foreigners
61,218
17,040
29,895
4,361
9,922
60,012
20,641
23,202
3,498
12,671
38,274
15,796
10,166
1,967
10,345
34,782
12,634
9,059
1,976
11,113
38,164
15,521
9,618
1,624
11,401
38,362
13,376
11,869
1,916
11,201
35,157
12,253
9,883
2,309
10,712
33,409
11,790
9,351
1,870
10,398
36,830
11,980
11,405
2,395
11,050
35,502
12,858
9,859
1,869
10,916
96 Total, all currencies
102
103
104
105
Other branches of parent bank
Banks
Official institutions
Nonbank foreigners
106 Other liabilities
107 Total payable in U.S. dollars
2,953
3,337
2,457
119,657
145,284
141,908
2,379
137,760'
2,460
2,339
143,804'
147,727'
2,240
137,709'
2,237
136,517'
2,354
2,331
145,129
140,264
A54
3.15
International Statistics • July 1984
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1983
Item
1 Total 1
2
3
4
5
6
I
8
9
10
II
12
By type
Liabilities reported by banks in the United States 2
U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes
Marketable
Nonmarketable 4
U.S. securities other than U.S. Treasury securities 5
By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries 6
Nov.
Dec.
Jan.
Feb.
Mar/
Apr.
May?
169,735
172,718
173,860
177,859
176,239
176,867
174,952
175,348
171,252
26,737
52,389
24,989
46,658
22,816
52,558
25,422
54,341
22,768
55,327
23,169
56,084
23,373
53,681
23,834
53,155
23,087
51,035
53,186
11,791
25,632
67,733
8,750
24,588
68,942
7,250
22,294
68,541
7,250
22,305
69,080
7,250
21,814
69,144
6,600
21,870
69,628
6,600
21,670
70,249
6,600
21,510
69,229
6,600
21,301
65,699
2,403
6,953
91,607
1,829
1,244
61,298
2,070
6,057
96,034
1,350
5,909
65,648
2,665
6,468
91,457
801
6,821
67,669
2,438
6,217
92,488
958
8,089
66,208
2,511
6,443
92,181
1,051
7,845
67,925
2,329
7,605
90,571
1,067
7,370
67,738
1,944
6,460
90,632
1,038
7,140
69,935
1,557
7,468
88,540
941
6,907
69,307
1,261
6,483
86,392
1,179
6,630
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.
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable in foreign currencies through 1974) and Treasury bills issued to official
institutions of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies.
3.16
1984
1982
1981
NOTE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States.
LIABILITIES TO A N D CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1983
Item
1980
1981
June
1 B a n k s ' o w n liabilities
2 Banks' own claims
3
Deposits
4
Other claims
5 Claims of banks' domestic customers'
1. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the accounts
of their domestic customers.
3,748
4,206
2,507
1,699
962
3,523
4,980
3,398
1,582
971
1984
1982
4,844
7,707
4,251
3,456
676
5,880
7,862
3,912
3,950
684
Sept.
5,976
7,984
3,061
4,923
717
Dec.
5,205
7,256
2,838
4,418
1,059
Mar.P
6,168
8,992
4,000
4,992
361
NOTE. Data on claims exclude foreign currencies held by U.S. monetary
authorities,
Nonbank-Reported
3.17
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Millions of dollars, end of period
Reported by Banks in the United States
1984
1983
Holder and type of liability
Data
1980
1981A
1982
Nov.
Dec.
Jan.
Feb.
Mar/
Apr.
May.?
1 AU foreigners
205,297
243,889
307,056
351,382
369,226
358,486
368,750
377,173
380,149
393,026
2 Banks' own liabilities
3
Demand deposits
4
Time deposits'
Other 2
5
6
Own foreign offices 3
124,791
23,462
15,076
17,583
68,670
163,817
19,631
29,039
17,647
97,500
227,089
15,889
68,035
23,946
119,219
262,226
17,198
84,735
22,863
137,430
278,644
17,594
90,098
26,100
144,851
264,478
16,100
87,691
23,287
137,401
271,707
16,639
91,157
23,989
139,922
284,926
17,466
96,462
24,485
146,513
286,960
17,182
96,072
24,789
148,917
300,605
17,867
102,640
23,692
156,405
80,506
57,595
80,072
55,315
79,967
55,628
89,156
66,746
90,582
68,669
94,007
71,083
97,043
74,277
92,247
69,666
93,189
69,878
92,422
68,502
20,079
2,832
18,788
5,970
20,636
3,702
17,721
4,690
17,529
4,385
18,063
4,862
17,864
4,903
18,075
4,506
18,703
4,608
18,794
5,125
2,344
2,721
4,922
6,363
5,957
4,759
6,831
6,243
6,356
5,329
444
146
85
212
638
262
58
318
1,909
106
1,664
139
4,939
437
4,079
423
4,632
297
3,885
449
2,867
271
2,235
361
2,317
347
1,611
360
4,047
414
2,656
977
3,528
194
2,468
866
2,242
255
1,638
350
1,900
254
2,083
541
3,013
1,621
1,424
484
1,325
463
1,892
1,045
4,514
3,416
2,1%
1,224
2,827
1,759
3,087
2,057
1,646
0
1,542
0
1,392
0
939
0
862
0
847
0
1,098
0
971
0
1,068
0
1,030
0
7 Banks' custody liabilities 4
8
U.S. Treasury bills and certificates 5
9
Other negotiable and readily transferable
instruments 6
10
Other
11 Nonmonetary international and regional
organizations 7
12 Banks' own liabilities
13
Demand deposits
14
Time deposits'
15
Other 2
16 Banks' custody liabilities 4
17
U.S. Treasury bills and certificates
18
Other negotiable and readily transferable
instruments 6
19
Other
20 Official institutions 8
86,624
79,126
71,647
75,374
79,764
78,095
79,253
77,053
76,990
74,122
21 Banks' own liabilities
22
Demand deposits
23
Time deposits'
24
Other 2
17,826
3,771
3,612
10,443
17,109
2,564
4,230
10,315
16,640
1,899
5,528
9,212
16,673
2,023
6,723
7,926
19,315
1,837
7,294
10,184
16,488
1,753
7,286
7,449
17,512
1,663
7,638
8,211
17,105
1,955
6,698
8,452
17,532
1,786
7,465
8,282
16,728
1,761
7,153
7,815
25 Banks' custody liabilities 4
26
U.S. Treasury bills and certificates 5
27
Other negotiable and readily transferable
instruments 6
28
Other
68,798
56,243
62,018
52,389
55,008
46,658
58,701
52,558
60,448
54,341
61,607
55,327
61,741
56,084
59,948
53,681
59,457
53,155
57,394
51,035
12,501
54
9,581
47
8,321
28
6,115
28
6,082
25
6,257
23
5,623
34
6,249
19
6,287
15
6,307
52
29 Banks 9
96,415
136,008
185,881
214,010
226,485
217,907
222,844
233,424
234,727
248,679
30 Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits'
34
Other 2
35
Own foreign offices 3
90,456
21,786
14,188
1,703
5,895
68,670
124,312
26,812
11,614
8,720
6,477
97,500
169,449
50,230
8,675
28,386
13,169
119,219
192,572
55,142
8,770
32,678
13,695
137,430
204,945
60,094
8,756
36,734
14,604
144,851
195,330
57,929
8,151
35,036
14,743
137,401
200,325
60,403
8,394
37,475
14,534
139,922
211,040
64,527
8,328
41,905
14,294
146,513
212,245
63,329
8,793
39,597
14,938
148,917
225,542
69,137
9,525
44,775
14,837
156,405
5,959
623
11,696
1,685
16,432
5,809
21,438
9,967
21,540
10,178
22,576
10,776
22,519
10,756
22,384
10,760
22,482
10,795
23,137
11,168
2,748
2,588
4,400
5,611
7,857
2,766
7,251
4,221
7,485
3,877
7,416
4,384
7,378
4,385
7,447
4,177
7,594
4,092
7,524
4,445
36 Banks' custody liabilities 4
37
U.S. Treasury bills and certificates
38
Other negotiable and readily transferable
instruments 6
39
Other
40 Other foreigners
19,914
26,035
44,606
55,635
57,021
57,725
59,822
60,454
62,076
64,896
41 Banks' own liabilities
42
Demand deposits
43
Time deposits
Other 2
44
16,065
5,356
9,676
1,033
21,759
5,191
16,030
537
39,092
5,209
32,457
1,426
48,042
5,968
41,255
819
49,751
6,703
42,185
863
49,793
5,925
43,134
734
51,552
6,234
44,434
884
52,734
6,770
45,203
761
53,654
6,409
46,542
703
56,092
6,327
49,074
691
3,849
474
4,276
699
5,514
1,540
7,593
3,737
7,269
3,686
7,932
3,935
8,270
4,021
7,719
4,001
8,423
4,168
8,804
4,243
3,185
190
3,265
312
3,065
908
3,415
441
3,100
483
3,542
455
3,764
484
3,408
311
3,755
501
3,933
628
10,745
10,747
14,307
10,385
10,407
10,307
9,416
9,688
10,128
10,625
45 Banks' custody liabilities 4
46
U.S. Treasury bills and certificates
47
Other negotiable and readily transferable
instruments 6
48
Other
49 MEMO: Negotiable time certificates of
deposit in custody for foreigners
1. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due to head office or parent foreign bank, and
foreign branches, agencies or wholly owned subsidiaries of head office or parent
foreign bank.
4. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
5. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments, and the Bank for
International Settlements.
9. Excludes central banks, which are included in "Official institutions."
• Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
A55
A56
3.17
International Statistics • July 1984
Continued
1983
Area and country
1980
1981A
1984
1982
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May.?
1 Total
205,297
243,889
307,056
351,382
369,226
358,486
368,750
377,173''
380,149
393,026
2 Foreign countries
202,953
241,168
302,134
345,019
363,269
353,726
361,918
370,931'
373,793
387,697
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
91,275
596
4,117
333
296
8,486
7,645
463
7,267
2,823
1,457
354
916
1,545
18,716
518
28,286
375
6,541
49
493
117,756
519
2,517
509
748
8,171
5,351
537
5,626
3,362
1,567
388
1,405
1,390
29,066
296
48,172
499
7,006
50
576
130,671
641
2,470
538
375
8,083
4,337
544
7,824
3,701
1,531
306
1,534
1,652
30,623
319
58,437
552
6,660
27
518
138,006
585
2,709
466
531
9,441
3,599
520
8,459
4,290
1,673
373
1,603
1,799
32,117
467
60,658
562
7,493
65
596
134,887
755
2,972
372
298
8,122
3,823
513
7,622
4,008
1,481
377
1,645
1,896
31,956
334
61,794
505
5,872
62
482
140,026
756
3,218
355
398
10,098
4,582
513
7,648
4,210
1,452
352
1,664
1,752
32,237
400
64,411
477
4,965
74
464
142,406'
861
3,367
285
287
10,728
4,878'
503
7,395
4,444
1,285
403
1,749
1,838
32,237'
318
64,971'
479
5,738'
177
464'
148,066
867
3,587
307
485
10,737
5,280
528
7,809
4,960
1,847
414
1,706
1,673
32,765
335
68,158
448
5,584
61
510
150,784
869
4,533
378
405
12,080
3,987
594
8,272
4,9%
1,536
399
1,663
1,962
32,778
444
68,487
511
6,262
53
574
3 Europe
4
Austria
5
Belgium-Luxembourg
6
Denmark
7
Finland
8
France
9
Germany
10
Greece
11
Italy
12
Netherlands
13
Norway
14
Portugal
15
Spain
16
Sweden
17
Switzerland
18
Turkey
19
United Kingdom
20
Yugoslavia
21
Other Western Europe 1
22
U.S.S.R
23
Other Eastern Europe 2
24 Canada
10,031
10,250
12,232
16,369
16,026
16,270
17,679
17,182
16,707
17,450
25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32
Colombia
33
Cuba
34
Ecuador
35
Guatemala
36
Jamaica
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other Latin America and Caribbean
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
85,223
2,445
34,856
765
1,568
17,794
664
2,993
9
434
479
87
7,235
3,182
4,857
694
367
4,245
2,548
114,163
3,578
44,744
1,572
2,014
26,381
1,626
2,594
9
455
670
126
8,377
3,597
4,805
1,147
759
8,417
3,291
134,139
4,377
53,703
2,582
4,150
30,624
1,783
1,645
10
1,003
766
234
9,463
3,941
5,946
1,090
1,173
8,024
3,626
140,033
4,011
55,877
2,328
3,158
34,431
1,842
1,689
8
1,047
788
109
10,389
3,879
5,924
1,166
1,232
8,603
3,551
135,671
4,303
52,314
2,745
2,997
32,531
1,811
1,584
9
828
800
113
10,994
3,773
5,586
1,130
1,278
9,313
3,562
138,399
4,536
52,850
3,165
3,473
32,456
1,935
1,840
13
826
812
131
10,693
4,503
5,545
1,146
1,321
9,442
3,712
143,255'
4,365
58,141'
2,886
3,723'
32,677'
1,876
1,669'
8
825
815
132
10,699
4,901
5,498
1,157
1,418
8,566
3,899
143,863
4,616
56,930
3,097
3,793
32,938
1,972
1,814
8
970
850
131
11,189
4,666
5,482
1,179
1,330
9,076
3,822
152,142
4.529
62,764
3,308
3,605
33,880
1,894
1,760
10
882
837
131
11,878
4,397
6,270
1,246
1,369
9,432
3,949
44 Asia
China
45
Mainland
46
Taiwan
47
Hong Kong
48
India
49
Indonesia
50
Israel
51
Japan
52
Korea
53
Philippines
54
Thailand
55
Middle-East oil-exporting countries 3
56
Other Asia
42,420
49,822
48,716
54,278
58,351
56,002
55,293
57,662
54,952
57,256
49
1,662
2,548
416
730
883
16,281
1,528
919
464
14,453
2,487
158
2,082
3,950
385
640
592
20,750
2,013
874
534
12,992
4,853
203
2,761
4,465
433
857
606
16,078
1,692
770
629
13,433
6,789
183
4,063
6,971
725
661
808
17,138
1,591
1,012
569
12,650
7,907
249
3,997
6,610
464
997
1,722
18,079
1,648
1,234
716
12,960
9,676
249
4,270
6,1%
670
1,093
786
17,069
1,614
1,235
776
12,516
9,528
168
4,291
5,884
749
859
752
17,615
1,542
1,280
622
11,587
9,943
272
4,193
6,387
687
753
832'
19,216
1,748
1,264
714
12,197'
9,398
302
4,388
5,447
651
784
708
18,862
1,409
1,015
637
12,267
8,482
391
4,361
5,917
646
897
760
20,563
1,332
1,130
729
11,618
8,912
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries 4
63
Other Africa
5,187
485
33
288
57
3,540
783
3,180
360
32
420
26
1,395
946
3,124
432
81
292
23
1,280
1,016
2,694
589
96
389
32
679
909
2,800
645
84
449
87
620
917
2,917
572
109
486
61
869
821
3,070
568
138
502
66
839
957
3,111
561
122
538
77
893
920
3,182
649
127
264
119
1,046
978
3,140
698
132
329
124
895
%2
64 Other countries
65
Australia
66
All other
1,247
950
297
1,419
1,223
196
6,143
5,904
239
6,868
6,666
202
8,053
7,857
196
7,979
7,742
237
7,451
7,197
255
7,315
7,095
220
7,023
6,803
220
6,925
6,685
240
67 Nonmonetary international and regional
organizations
68
International
69
Latin American regional
70
Other regional 5
2,344
1,157
890
296
2,721
1,661
710
350
4,922
4,049
517
357
6,363
5,598
415
350
5,957
5,273
419
265
4,759
4,174
433
152
6,831
6,189
457
186
6,243
5,426
451
366
6,356
5,641
419
296
5,329
4,754
428
146
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."
• Liabilities and claims of banks in the United States were increased, beginning
in December 1981, by the shift from foreign branches to international banking
facilities in the United States of liabilities to, and claims on, foreign residents.
Nonbank-Reported
3.18
Data
A57
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1984
1983
Area and country
1981 •
1980
1982
Nov.
Dec.
Feb.
Jan.
Mar.
Apr.
May.P
1
172,592
251,589
355,705
375,118
387,710
372,146
376,875
385,029'
387,485
397,965
2 Foreign countries
172,514
251,533
355,636
375,048
387,547
372,081
376,711
384,879'
387,411
397,862
32,108
236
1,621
127
460
2,958
948
256
3,364
575
227
331
993
783
1,446
145
14,917
853
179
281
1,410
49,262
121
2,849
187
546
4,127
940
333
5,240
682
384
529
2,095
1,205
2,213
424
23,849
1,225
211
377
1,725
85,584
229
5,138
554
990
7,251
1,876
452
7,560
1,425
572
950
3,744
3,038
1,639
560
45,781
1,430
368
263
1,762
90,243
395
5,548
1,272
822
7,942
1,256
412
8,459
1,396
590
891
3,654
3,249
2,114
693
47,762
1,582
429
173
1,603
90,743
401
5,639
1,275
1,044
8,761
1,294
476
9,013
1,302
690
939
3,573
3,358
1,856
812
46,372
1,673
477
192
1,598
90,378
354
5,942
1,296
945
7,984
1,058
508
7,869
1,407
652
954
3,391
3,373
1,452
795
48,488
1,718
493
162
1,537
91,293
414
6,182
1,244
952
8,314
1,047
549
7,904
1,319
645
944
3,280
3,356
1,302
879
49,069
1,702
547
169
1,475
91,836'
449
5,970
1,283
931
8,388
1,098
694
8,161
1,309'
638
908
3,347
3,528
1,447
958
48,800'
1,706
499
181
1,54c
96,206
695
6,199
1,197
1,021
8,734
1,502
830
8,286
2,329
705
1,079
3,719
3,646
1,845
1,019
49,316
1,694
655
174
1,562
97,639
454
6,452
1,118
1,041
9,012
1,110
940
7,840
1,787
719
1,141
3,683
2,942
1,565
1,004
52,877
1,651
565
154
1,584
3
4
5
6
7
8
9
10
11
1?
13
14
15
16
17
18
19
20
21
77
23
Belgium-Luxembourg
Germany
Italy
Norway
Portugal
Switzerland
Turkey
United Kingdom
Yugoslavia
Other Western Europe 1
U.S.S.R
Other Eastern Europe 2
4,810
9,193
13,678
16,382
16,330
15,868
15,984
17,233'
17,065
17,873
?5 Latin America and Caribbean
76
Argentina
77
78
79
Brazil
30
British West Indies
31
Chile
3?
Colombia
33
Cuba
34
35
Guatemala 3
36
37
38
Netherlands Antilles
39
40
41
Uruguay
4?
Venezuela
43
Other Latin America and Caribbean
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
138,347
7,527
43,542
346
16,926
21,981
3,690
2,018
3
1,531
124
62
22,439
1,076
6,794
1,218
157
7,069
1,844
187,969
10,974
56,649
603
23,271
29,101
5,513
3,211
3
2,062
124
181
29,552
839
10,210
2,357
686
10,643
1,991
197,785
11,899
56,131
620
24,532
32,251
5,860
3,734
0
2,262
122
210
33,729
1,186
8,336
2,469
903
11,086
2,455
203,269
11,740
58,351
566
24,482
34,921
6,029
3,745
0
2,307
129
215
34,710
1,154
7,848
2,536
977
11,287
2,271
193,898
11,746
52,586
644
24,826
31,171
6,163
3,695
0
2,367
189
218
34,547
971
7,847
2,467
982
11,247
2,232
196,869
11,751
52,761
409
24,928
33,175
6,286
3,536
0
2,350
126
219
34,685
1,043
8,794
2,415
908
11,183
2,298
201,81c
11,626
57,169'
532
25,697'
33,157'
6,131
3,667'
0
2,334
128
210
34,593'
1,245'
8,367
2,453
924
11,142'
2,436
201,371
11,419
56,764
772
25,928
33,763
6,051
3,649
4
2,335
129
227
34,578
1,149
7,679
2,380
923
11,107
2,514
209,169
11,034
61,966
852
25,721
36,262
6,066
3,523
0
2,320
114
241
35,140
1,164
7,892
2,427
886
11,001
2,559
44
39,078
24 Canada
49,851
60,952
61,286
67,648
62,655
62,623
64,347'
63,015
63,532
195
2,469
2,247
142
245
1,172
21,361
5,697
989
876
1,432
2,252
107
2,461
4,132
123
352
1,567
26,797
7,340
1,819
565
1,581
3,009
214
2,288
6,787
222
348
2,029
28,379
9,387
2,625
643
3,087
4,943
249
1,574
8,758
305
711
1,817
25,829
9,629
2,427
867
4,276
4,845
292
1,908
8,429
330
805
1,795
30,573
9,891
2,099
1,021
4,954
5,549
420
1,820
8,129
344
853
1,556
27,333
9,489
2,408
1,021
4,637
4,646
337
1,710
8,030
253
899
1,478
27,845
9,513
2,357
1,035
4,264
4,902
364'
1,657'
7,470
337
935
1,607
28,688'
9,676
2,371
999'
5,039'
5,203'
428
1,654
7,940
372
911
1,846
26,182
10,325
2,359
1,014
5,097
4,887
348
1,574
7,597
361
983
1,821
27,152
9,550
2,382
1,127
5,181
5,456
2,377
151
223
370
94
805
734
3,503
238
284
1,011
112
657
1,201
5,346
322
353
2,012
57
801
1,802
6,830
692
461
2,892
37
1,039
1,709
6,654
747
440
2,634
33
1,073
1,727
6,571
738
450
2,684
29
1,037
1,631
7,226
712
481
2,928
16
1,124
1,964
6,919
744
484
2,989
13
1,029
1,661
6,646
698
486
2,908
26
1,000
1,527
6,709
633
558
2,974
28
967
1,550
1,150
859
290
1,376
1,203
172
2,107
1,713
394
2,522
1,899
624
2,904
2,272
632
2,712
2,105
607
2,718
2,048
670
2,734
2,007
727
3,109
2,489
620
2,940
2,343
597
78
56
68
70
164
64
164
150
74
103
China
45
46
47
48
49
50
51
S?
53
54
55
56
57
58
59
60
61
67
63
Taiwan
Hong Kong
Philippines
Middle East oil-exporting countries 4
Other Asia
South Africa
Oil-exporting countries 5
Other
64 Other countries
65
Australia
66
All other
67 Nonmonetary international and regional
organizations 6
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
3. Included in "Other Latin America and Caribbean" through March 1978.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."
NOTE. Data for period before April 1978 include claims of banks' domestic
customers on foreigners.
• Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
A58
International Statistics • July 1984
3.19
BANKS' OWN A N D DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period
1983
Type of claim
1980
1981A
1984
1982
Nov.
Dec.
Jan.
Feb.
372,146
58,115
138,377
115,211
43,092
72,119
60,442
376,875
57,346
140,881
116,872
44,742
72,130
61,776
Mar.'
1 Total
198,698
287,557
396,015
2
3
4
5
6
7
8
172,592
20,882
65,084
50,168
8,254
41,914
36,459
251,589
31,260
96,653
74,704
23,381
51,322
48,972
355,705
45,422
127,293
121,377
44,223
77,153
61,614
26,106
885
35,968
1,378
40,310
2,491
33,943
2,969
36,185
3,660
15,574
26,352
30,763
25,104
25,992
9,648
8,238
7,056
5,870
6,533
22,714
29,952
38,153
37,324
36,984
24,468
40,369
42,358'
Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices 1
Unaffiliated foreign banks
Deposits
Other
All other foreigners
9 Claims of banks' domestic customers 2
10 Deposits
11 Negotiable and readily transferable
instruments 3
12 Outstanding collections and other
claims
13 MEMO: Customer liability on
acceptances
Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 4 . . .
421,653
375,118
56,026
137,520
118,619
44,738
73,881
62,952
48,672'
1. U.S. banks: includes amounts due from own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies,
branches, and majority-owned
subsidiaries
of
foreign banks: principally amounts due from head office or parent foreign bank,
and foreign branches, agencies, or wholly owned subsidianes 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.
3.20
387,710
57,255
144,016
122,779
46,392
76,387
63,661
Apr.
May?
421,214
44,994'
44,836'
46,979'
385,029
57,731
146,467
119,496
45,364
74,132
61,335
46,258
387,485
58,043
146,122
121,193
44,229
76,964
62,127
397,965
57,844
155,749
122,869
46,730
76,139
61,503
47,681
n.a.
4. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see July 1979 BULLETIN,
p. 550.
• Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
NOTE. Beginning April 1978, data for banks' own claims are given on a monthly
basis, but the data for claims of banks' own domestic customers are available on a
quarterly basis only.
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1984
Maturity; by borrower and area
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
By borrower
Maturity of 1 year or less 1
Foreign public borrowers . . . .
All other foreigners
Maturity of over 1 year 1
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less 1
Europe
Canada
Latin America and Caribbean
Asia
Africa
Allother 2
Maturity of over 1 year 1
Europe
Canada
Latin America and Caribbean
Asia
Africa
Allother 2
1. Remaining time to maturity.
2. Includes nonmonetary international and regional organizations.
1980
1981A
1982
June
Sept.
Mar.
106,748
154,590
228,150
232,704
237,162
242,933
232,612
82,555
9,974
72,581
24,193
10,152
14,041
116,394
15,142
101,252
38,197
15,589
22,608
173,917
21,256
152,661
54,233
23,137
31,095
175,021
23,124
151,897
57,683
26,455
31,227
176,271
25,479
150,792
60,891
28,231
32,660
175,970
24,258
151,712
66,963
32,482
34,481
159,835
20,656
139,179
72,777
35,825
36,952
18,715
2,723
32,034
26,686
1,757
640
28,130
4,662
48,717
31,485
2,457
943
50,500
7,642
73,291
37,578
3,680
1,226
52,208
7,110
74,967
35,345
3,854
1,536
53,332
6,642
76,383
33,890
4,570
1,454
55,550
6,200
73,997
34,518
4,206
1,499
53,167
6,566
63,053
31,238
4,472
1,340
5,118
1,448
15,075
1,865
507
179
8,100
25,209
1,907
900
272
11,636
1,931
35,247
3,185
1,494
740
12,289
1,861
36,730
4,070
1,667
12,338
1,760
39,102
4,735
1,819
1,136
13,300
1,857
43,498
4,838
2,278
1,191
13,068
2,035
49,047
5,131
2,291
1,206
1,808
1,066
• Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
Nonbank-Reported
3.21
Data
A59
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks'
Billions of dollars, end of period
1982
Area or country
1979
1980
1984
1983
1981
June
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.P
303.9
352.0
415.2
435.5
438.4
438.7
441.1
437.4
428.3
434.1
430.8
138.4
11.1
11.7
12.2
6.4
4.8
2.4
4.7
56.4
6.3
22.4
162.1
13.0
14.1
12.1
8.2
4.4
2.9
5.0
67.4
8.4
26.5
175.5
13.3
15.3
12.9
9.6
4.0
3.7
5.5
70.1
10.9
30.2
176.3
14.1
16.5
12.7
9.0
4.1
4.0
5.1
69.4
11.4
29.9
175.4
13.6
15.8
12.2
9.7
3.8
4.7
5.1
70.3
11.0
29.3
179.7
13.1
17.1
12.7
10.3
3.6
5.0
5.0
72.1
10.4
30.2
182.2
13.7
17.1
13.5
10.2
4.3
4.3
4.6
72.9
12.5
29.2
176.9
13.3
17.1
12.6
10.5
4.0
4.7
4.8
70.3
10.8
28.7
168.3
12.6
16.2
11.6
10.0
3.6
4.9
4.2
67.4
9.0
28.8
167.2
12.4
16.3
11.3
11.4
3.5
5.1
4.3
64.4
8.3
30.1
165.0
11.0
15.9
11.7
11.2
3.4
5.2
4.2
63.9
8.6
30.0
13 Other developed countries
14
Austria
15
Denmark
16
Finland
17
Greece
18
Norway
19
Portugal
20
Spain
21
Turkey
22
Other Western Europe
23
South Africa
24
Australia
19.9
2.0
2.2
1.2
2.4
2.3
.7
3.5
1.4
1.4
1.3
1.3
21.6
1.9
2.3
1.4
2.8
2.6
.6
4.4
1.5
1.7
1.1
1.3
28.4
1.9
2.3
1.7
2.8
3.1
1.1
6.6
1.4
2.1
2.8
2.5
32.2
2.1
2.6
1.6
2.7
3.2
1.5
7.3
1.5
2.2
3.5
4.0
32.7
2.0
2.5
1.8
2.6
3.4
1.6
7.7
1.5
2.1
3.6
4.0
33.7
1.9
2.4
2.2
3.0
3.3
1.5
7.5
1.4
2.3
3.7
4.4
34.0
2.1
3.3
2.1
2.9
3.3
1.4
7.1
1.5
2.3
3.6
4.6
34.4
2.1
3.4
2.1
2.9
3.4
1.4
7.2
1.4
2.0
3.9
4.6
34.2
1.9
3.3
1.8
2.9
3.2
1.3
7.2
1.5
2.1
4.7
4.4
35.9
1.9
3.4
2.4
2.8
3.3
1.3
7.1
1.7
1.8
4.7
5.5
35.5
2.0
3.4
2.1
3.0
3.2
1.1
7.1
1.9
1.8
4.8
5.2
25 OPEC countries 2
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30
African countries
22.9
1.7
8.7
1.9
8.0
2.6
22.7
2.1
9.1
1.8
6.9
2.8
24.8
2.2
9.9
2.6
7.5
2.5
26.4
2.4
10.1
2.8
8.7
2.5
27.3
2.3
10.4
2.9
9.0
2.7
27.4
2.2
10.5
3.2
8.7
2.8
28.5
2.2
10.4
3.5
9.3
3.0
28.3
2.2
10.4
3.2
9.5
3.0
27.2
2.1
9.8
3.4
9.1
2.8
28.9
2.2
9.9
3.8
10.0
3.0
28.5
2.1
9.7
4.0
9.8
3.0
31 Non-OPEC developing countries
63.0
77.4
96.3
103.7
104.1
107.1
107.7
108.3
109.1
110.6
111.9
5.0
15.2
2.5
2.2
12.0
1.5
3.7
7.9
16.2
3.7
2.6
15.9
1.8
3.9
9.4
19.1
5.8
2.6
21.6
2.0
4.1
9.6
21.4
6.4
2.6
25.2
2.4
4.0
9.2
22.4
6.2
2.8
25.0
2.6
4.3
8.9
22.9
6.3
3.1
24.5
2.6
4.0
9.0
23.1
6.0
2.9
25.1
2.4
4.2
9.4
22.6
5.8
3.2
25.2
2.6
4.3
9.5
22.9
6.2
3.2
25.8
2.4
4 2
9.5
22.9
6.4
3.2
26.0
2.4
4.2
9.5
24.9
6.4
3.1
25.5
2.3
4.4
1 Total
2 G-10 countries and Switzerland
3
Belgium-Luxembourg
4
France
5
Germany
6
Italy
7
Netherlands
8
Sweden
9
Switzerland
10
United Kingdom
11
Canada
12
Japan
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.1
3.4
.2
1.3
5.4
1.0
4.2
1.5
.5
.2
4.2
.3
1.5
7.1
1.1
5.1
1.6
.6
.2
5.1
.3
2.1
9.4
1.7
6.0
1.5
1.0
.3
5.0
.5
2.2
8.9
1.9
6.3
1.3
1.1
.2
4.9
.5
1.9
9.4
1.8
6.1
1.3
1.3
.2
5.3
.6
2.3
10.9
2.1
6.3
1.6
1.1
.2
5.1
.4
2.0
10.9
2.5
6.6
1.6
1.4
.2
5.1
.5
2.3
10.8
2.6
6.4
1.8
1.2
.2
5.2
.5
1.7
10.8
2.8
6.2
1.7
1.0
.3
5.3
.6
1.8
11.3
2.9
6.2
2.0
1.0
.4
5.0
1.0
1.6
11.1
2.8
6.7
1.9
.9
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 3
.6
.6
.2
1.7
.8
.7
.2
2.1
1.1
.7
.2
2.3
1.3
.7
.2
2.3
1.3
.8
.1
2.2
1.2
.7
.1
2.4
1.1
.8
.1
2.3
1.3
.8
.1
2.2
1.4
.8
.1
2.4
1.5
.8
.1
2.3
1.4
.8
.1
2.2
52 Eastern Europe
53
U.S.S.R
54
Yugoslavia
55
Other
7.3
.7
1.8
4.8
7.4
.4
2.3
4.6
7.8
.6
2.5
4.7
6.7
.4
2.4
3.9
6.3
.3
2.2
3.8
6.2
.3
2.2
3.7
5.7
.3
2.2
3.2
5.7
.4
2.3
3.0
5.3
.2
2.3
2.8
5.3
.2
2.3
2.8
4.9
56 Offshore banking centers
57
Bahamas
58
Bermuda
59
Cayman Islands and other British West Indies
60
Netherlands Antilles
61
Panama 4
62
Lebanon
63
Hong Kong
64
Singapore
65
Others 5
40.4
13.7
.8
9.4
1.2
4.3
.2
6.0
4.5
.4
47.0
13.7
.6
10.6
2.1
5.4
.2
8.1
5.9
.3
63.7
19.0
.7
12.4
3.2
7.7
.2
11.8
8.7
.1
72.1
24.1
.7
12.4
3.0
7.4
.2
14.4
9.9
.1
72.2
21.4
.8
13.6
3.3
8.1
.1
15.1
9.8
.0
66.8
19.0
.9
12.9
3.3
7.6
.1
13.9
9.2
.0
66.2
17.4
1.0
12.0
3.1
7.1
.1
15.1
10.3
.0
67.6
19.6
.8
12.2
2.6
6.6
.1
14.6
11.0
.0
67.5
20.5
.8
10.6
4.1
5.7
.1
15.1
10.5
.1
69.2
20.7
.9
12.2
4.2
6.0
.1
14.9
10.2
.0
68.9
23.6
.7
10.8
3.2
6.3
.1
14.3
9.8
.0
66 Miscellaneous and unallocated 6
11.7
14.0
18.8
18.4
20.4
17.9
16.8
16.1
16.8
17.0
16.2
1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.18 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches).
->
2.2
2.5
2. Besides the Organization of Petroleum Exporting Countries shown individually, this group includes other members of OPEC (Algeria, Gabon, Iran, Iraq,
Kuwait, Libya, Nigeria, Qatar,. Saudi Arabia, and United Arab Emirates) as well
as Bahrain and Oman (not formally members of OPEC).
3. Excludes Liberia.
4. Includes Canal Zone beginning December 1979.
5. Foreign branch claims only.
6. Includes N e w Zealand, Liberia, and international and regional organizations.
A60
International Statistics • July 1984
3.22
L I A B I L I T I E S TO U N A F F I L I A T E D F O R E I G N E R S Reported by Nonbanking Business Enterprises in the
United States'
Millions of dollars, end of period
1982
Type, and area or country
1980
1981
1983
1982
Dec.
Mar.
June
Sept.
Dec.
1 Total
29,434
28,618
25,663'
25,663'
23,450'
22,846'
24,762'
23,571
2 Payable in dollars
3 Payable in foreign currencies
25,689
3,745
24,909
3,709
22,470'
3,193
22,470'
3,193
20,459'
2,991'
19,922'
2,924'
21,895'
2,867
20,484
3,087
By type
4 Financial liabilities
5
Payable in dollars
6
Payable in foreign currencies
11,330
8,528
2,802
12,157
9,499
2,658
11,001'
8,829'
2,172
11,001'
8,829'
2,172
10,996'
8,952'
2,044'
11,181'
9,120'
2,061'
10,946'
8,976'
1,971
10,383
8,504
1,879
7 Commercial liabilities
8
Trade payables
9
Advance receipts and other liabilities
18,104
12,201
5,903
16,461
10,818
5,643
14,662
7,707
6,955
14,662
7,707
6,955
12,454
5,627
6,827
11,665
6,026
5,640
13,815
7,056
6,760
13,189
6,496
6,693
17,161
943
15,409
1,052
13,641
1,021
13,641
1,021
11,507
947
10,802
864
12,919
896
11,980
1,208
6,481
479
327
582
681
354
3,923
6,825
471
709
491
748
715
3,565
10
11
12
13
14
15
16
17
18
Payable in dollars
Payable in foreign currencies
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
19
Canada
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
27
28
29
Japan
Middle East oil-exporting countries 2
964
963
3,136
964
1
23
1,452
99
81
3,356
1,279
7
22
1,241
102
98
723
644
38
6,438'
557'
731
470
711
753
3,075'
6,438'
557'
731
470
711
753
3,075'
6,319'
459'
725
487
699
71(K
3,097'
6,337'
482'
756
460
728
629'
3,108'
6,027'
379
785
454
730
530
2,992'
5,715
302
820
505
581
525
2,834
746
746
733
2,749'
904'
14
28
1,025'
121
114
2,749'
904'
14
28
1,025'
121
114
2,787'
857'
18
39
1,053'
149
121
2,623'
776'
10
34
1,033'
151
124
2,709'
771
13
32
1,023'
185
117
2,541
749
13
32
896
215
124
976
792
75
1,039
715
169
1,039
715
169
1,124
781
168
1,319
943
205
1,388'
957
201
1,330
962
170
876'
788
770
30
31
Africa
Oil-exporting countries 3
11
1
14
0
17
0
17
0
20
0
17
0
19
0
18
0
32
All other 4
15
24
12
12
13
9
15
10
4,402
90
582
679
219
499
1,209
3,770
71
573
545
220
424
880
3,649
52
597
467
346
363
850
3,649
52
597
467
346
363
850
3,443
45
578
455
351
354
679
3,368
41
617
439
342
357
633
3,384
47
506
461
243
448
786
3,122
62
436
436
275
232
605
33
34
35
36
37
38
39
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
40
Canada
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
48
49
50
Asia
Japan
Middle East oil-exporting countries 2 ' 5
51
52
53
888
897
1,490
1,490
1,433
1,465
1,407
1,827
1,300
8
75
111
35
367
319
1,044
2
67
67
2
340
276
1,008
16
89
60
32
379
165
1,008
16
89
60
32
379
165
1,066
4
117
51
4
355
198
1024
1
76
49
22
399
236
1,067
1
76
48
14
429
217
1,063
1
63
44
6
491
166
10,242
802
8,098
9,384
1,094
7,008
7,160
1,226
4,531
7,160
1,226
4,531
5,437
1,235
2,803
4,799
1,236
2,294
6,852
1,294
4,072
6,040
1,234
3,498
Africa
Oil-exporting countries 3
817
517
703
344
704
277
704
277
497
158
492
167
506
204
446
157
All other 4
456
664
651
651
578
518
600
690
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.
Nonbank-Reported
3.23
CLAIMS ON U N A F F I L I A T E D F O R E I G N E R S
United States 1
Millions of dollars, end of period
980
A61
Reported by Nonbanking Business Enterprises in the
1982
Type, and area or country
Data
1983
1982
1981
Dec.
Mar.
Sept.
June
Dec.
1 Total
34,482
36,185
28,483'
28,483'
31,230'
31,505'
31,656
33,329
2 Payable in dollars
3 Payable in foreign currencies
31,528
2,955
32,582
3,603
25,851'
2,632'
25,851'
2,632'
28,510'
2,720'
28,849'
2,656'
28,780
2,877
30,169
3,160
By type
4 Financial claims
5
Deposits
6
Payable in dollars
7
Payable in foreign currencies
8
Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
19,763
14,166
13,381
785
5,597
3,914
1,683
21,142
15,081
14,456
625
6,061
3,599
2,462
17,501'
12,965'
12,534'
43C
4,536
2,895
1,641
17,501'
12,965'
12,534'
43C
4,536
2,895
1,641
20,261'
15,61c
15,130'
480'
4,651
3,006
1,645
20,896'
16,072'
15,632'
439'
4,824'
3,226'
1,598
20,831
15,987
15,542
445
4,845
3,019
1,826
22,299
17,318
16,821
497
4,981
2,919
2,062
11 Commercial claims
12
Trade receivables
13
Advance payments and other claims..
14,720
13,960
759
15,043
14,007
1,036
10,982
9,973
1,010
10,982
9,973
1,010
10,969
9,765
1,203
10,609
9,241
1,367
10,825
9,526
1,299
11,030
9,655
1,375
14
15
14,233
487
14,527
516
10,422
561
10,422
561
10,374
595
9,991
618
10,219
606
10,429
601
6,069
145
298
230
51
54
4,987
4,596
43
285
224
50
117
3,546
4,868'
10
134
178
97
107
4,064'
4,868'
10
134
178
97
107
4,064'
6,229'
58
98
127
140
107
5,434'
6,847'
12
140
216'
136
37
6,058'
6,202
25
135
151
89
34
5,547
6,423
37
130
129
49
38
5,768
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
5,036
6,755
4,287
4,287
4,613
4,885'
4,958
5,759
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
7,811
3,477
135
96
2,755
208
137
8,812
3,650
18
30
3,971
313
148
7,458'
3,265'
32
62
3,171'
274
139
7,458'
3,265'
32
62
3,171'
274
139
8,527'
3,811'
21
50
3,408'
352
156
8,089'
3,291'
92'
48
3,447'
348
152
8,609
3,389
62
49
3,932
315
137
9,110
4,332
96
53
3,509
273
134
31
32
33
Asia
Japan
Middle East oil-exporting countries 2
607
189
20
758
366
37
698
153
15
698
153
15
712
233
18
771'
288
14
764
257
8
714
246
4
34
Africa
208
26
173
46
158
48
158
48
153
45
154
48
151
45
147
55
32
48
31
31
25
149
148
145
5,544
233
1,129
599
318
354
929
5,405
234
776
561
299
431
985
3,777
150
473
356
347
339
808
3,777
150
473
356
347
339
808
3,594
140
489
424
309
227
754
3,410
144
499
364
242
303
739
3,349
131
486
381
282
270
734
3,604
142
455
346
332
295
802
35
36
37
38
39
40
41
42
43
Oil-exporting countries 3
All other 4
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
.
44
Canada
914
967
632
632
648
716
788
822
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
3,766
21
108
861
34
1,102
410
3,479
12
223
668
12
1,022
424
2,521
21
259
258
12
774
351
2,521
21
259
258
12
774
351
2,699
30
172
402
21
894
288
2,722
30
108
512
21
956
273
2,864
15
242
611
12
897
282
2,697
8
194
493
7
883
273
52
53
54
Asia
Japan
Middle East oil-exporting countries 2
3,522
1,052
825
3,959
1,245
905
3,048
1,047
751
3,048
1,047
751
3,128
1,115
702
2,871
949
700
2,936
1,037
719
3,045
1,091
737
55
56
Africa
Oil-exporting countries 3
653
153
772
152
588
140
588
140
559
131
528
130
562
131
584
139
57
All other 4
321
461
417
417
342
361
326
277
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
A62
3.24
International Statistics • July 1984
F O R E I G N T R A N S A C T I O N S IN S E C U R I T I E S
Millions of dollars
1984
Transactions, and area or country
1982
1983
1984
1983
Jan.May
Nov.
Jan.
Dec.
Feb.
Mar.
Apr.
MayP
U.S. corporate securities
STOCKS
41,881
37,981
1 Foreign purchases
2 Foreign sales
69,896
64,466
27,338
26,904
4,853
4,794
6,020
5,745
5,445
5,798
6,234
5,823
6,101
5,599
4,510
4,189
5,048
5,494
-446
3 Net purchases, or sales ( - )
3,901
5,430
434
60
275
-353
411
502
321
4 Foreign countries
3,816
5,332
474
59
283
-342
480
470
320
-454
2,530
-143
333
-63
-579
3,117
222
317
366
247
2
131
3,999
-97
1,045
-109
1,325
1,818
1,151
529
-807
394
42
24
243
-34
278
-29
57
-89
719
288
-829
58
8
-13
329
-4
151
32
-3
125
300
14
-197
33
-7
-1
208
38
-43
-15
90
137
73
25
-58
66
5
2
-281
100
-40
-47
-220
-96
-61
82
-168
-28
-4
6
85
98
-40
0
32
1
8
21,639
20,188
23,976
23,076
9,622
9,012
2,039
1,304
20 Net purchases, or sales ( - )
1,451
900
610
21 Foreign countries
1,479
885
558
22
23
24
25
26
27
28
29
30
31
32
33
2,082
305
2,110
33
157
-589
24
159
-752
-22
-19
7
904
-89
286
51
632
438
123
100
-1,159
865
0
52
5
6
7
8
9
10
11
12
13
14
15
16
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
17 Nonmonetary international and
regional organizations
-60
-68
53
24
-97
21
-1
14
45
63
1
-3
-160
-71
95
0
-92
-87
83
124
-361
-48
5
16
147
-97
116
1
282
-168
323
43
-44
36
10
-34
-11
-70
1,661
1,493
1,836
1,775
2,113
1,864
2,20C
2,074'
1,710
1,857
1,763
1,442
735
168
62
248
126'
-147
321
715
160
72
161
18Y
-214
355
458
-31
53
5
15
390
46
-6
116
101
0
0
-87
-4
-10
3
78
-126
-22
20
42
207
0
0
51
-5
-32
25
5
101
-10
16
30
75
0
-2
-15
-1
117
9
-45
-58
-23'
18'
30
170
0
3
30
-5
68
-12
-22
-239
-77
-8
-263
102
1
1
85
0
107
-1
8
-59
3
157
11
100
0
0
20
7
-278
-64
-51
13
-208
51
183
239
13
122
2
1
- 7
BONDS2
18 Foreign purchases
19 Foreign sales
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
34 Nonmonetary international and
regional organizations
-28
15
224
-12
221
24
-43
-126
-106
192
-218
465
0
1
53
72
-1
-38
3
12
129
1
9
-26
18
-1
0
-11
87
-57
67
-34
Foreign securities
35 Stocks, net purchases, or sales ( - )
36
Foreign purchases
37
Foreign sales
-1,341
7,163
8,504
-3,867
13,143
17,010
383
6,631
6,248
-31
907
939
-190
1,126
1,317
-125
1,197
1,323
318
1,460
1,142
144
1,575
1,431
-18
1,242
1,260
64
1,156
1,092
38 Bonds, net purchases, or sales ( - )
39
Foreign purchases
40
Foreign sales
-6,631
27,167
33,798
-3,694
35,669
39,363
-1,126
20,913
22,039
173
3,114
2,940
-689
3,072
3,761
125
3,273
3,148
-73
3,902
3,975
-148'
4,760'
4,907'
-399
3,812
4,211
-631
5,165
5,797
41 Net purchases, or sales ( - ) , of stocks and bonds
-7,972
-7,561
-743
142
-879
0
245
-4'
-417
-567
42
43
44
45
46
47
48
49
-6,806
-7,116
-961
38
-719
-29
213
-89'
-415
-2,584
-2,363
336
-1,822
-9
-364
-5,713
-1,582
1,120
-914
141
-166
-2,743
-202
1,079
939
-47
12
-426
37
135
158
1
133
-448
-64
17
-81
0
-143
-45
-128
114
33
-5
2
-404
184
188
255
-11
1
-237'
-108'
49
220
-10
-3
-537
-187
126
187
-4
0
-1,165
-445
219
105
-161
28
32
Foreign countries
Europe
Canada
Latin America and Caribbean
Asia
Africa
Other countries
Nonmonetary international and
regional organizations
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
85
- 2
-642
-1,520
38
602
243
-16
12
74
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.
Investment
3.25
MARKETABLE U.S. TREASURY BONDS AND NOTES
Millions of dollars
Transactions and Discount Rates
Foreign Holdings and Transactions
1984
1984
1983
1983
1982
Country or area
A63
Jan.May
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May P
Holdings (end of period) 1
1 Estimated total 2
85,220
88,940
89,509
88,940
89,666
90,275
89,725'
92,074
2 Foreign countries 2
80,637
83,820
83,668
83,820
84,549
84,446
84,447'
85,472
85,290
3 Europe 2
4
Belgium-Luxembourg
5
Germany 2
6
Netherlands
7
Sweden
8
Switzerland 2
9
United Kingdom
10
Other Western Europe
11
Eastern Europe
12 Canada
29,284
447
14,841
2,754
677
1,540
6,549
2,476
0
602
35,537
16
17,290
3,129
867
1,118
8,524
4,592
0
1,301
35,106
2
17,092
3,048
783
1,064
8,626
4,490
0
1,225
35,537
16
17,290
3,129
867
1,118
8,524
4,592
0
1,301
36,049
33
17,581
3,113
898
1,167
8,723
4,535
0
1,298
37,396
50
18,527
3,052
918
1,206
8,610
5,034
0
1,310
37,303'
57
18,834'
3,023
965
1,256
8,430
4,740'
0
1,090
37,864
91
19,201
3,117
969
1,241
8,434
4,809
0
1,299
37,876
61
19,507
2,979
974
979
8,670
4,707
-1
1,308
13
14
15
16
17
18
19
20
1,076
188
656
232
49,543
11,578
77
55
863
64
716
83
46,000
13,910
79
40
914
64
674
176
46,301
13,600
79
43
863
64
716
83
46,000
13,910
79
40
1,426
64
696
665
45,664
14,012
79
33
840
64
574
201
44,797
14,351
78
25
563
64
504
-6
45,386'
14,333
82
22
572
65
453
53
45,595
14,547
85
58
962
65
546
351
44,977
14,871
88
79
4,583
4,186
6
5,120
4,404
6
5,841
5,030
0
5,120
4,404
6
5,117
4,467
6
5,829
5,139
6
5,278'
4,614
6
6,602
5,936
6
7,627
6,946
6
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
All other
21 Nonmonetary international and regional organizations
22
International
23
Latin American regional
92,917
Transactions (net purchases, or sales ( - ) during period)
24 Total 2
25 Foreign countries 2
26
Official institutions
27
Other foreign 2
28 Nonmonetary international and regional organizations
MEMO: Oil-exporting countries
29 Middle East 3
30 Africa 4
14,972
3,720
3,977
-1,422
-576
726
610
-SSO'
2,348
843
16,072
14,550
1,518
-1,097
3,183
806
2,381
531
1,470
680
790
2,504
-615
-773
158
-808
152
-401
554
-729
729
539
189
-3
-103
64
-168
712
I'
476'
-475'
-551'
1,025
621
404
1,322
-182
-1,021
840
1,024
7,575
-552
-5,424
-1
-2,983
0
-968
0
-60
0
-515
0
-773
0
-678
0
-1,063
0
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.
3.26
46
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.
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Rate on June 30, 1984
Rate on June 30, 1984
Country
Country
Percent
Austria..
Belgium.
Brazil...
Canada..
Denmark
4.25
11.0
49.0
12.36
7.0
Month
effective
Mar.
Feb.
Mar.
June
Oct.
1984
1984
1981
1984
1983
France 1
Germany, Fed. Rep. of
Italy
Japan
Netherlands
1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts
Rate on June 30, 1984
Country
Percent
Month
effective
11.75
4.5
15.5
5.0
5.0
May 1984
June 1984
May 1984
Oct. 1983
Sept. 1983
Norway
Switzerland
United Kingdom 2 .
Venezuela
Percent
Month
effective
8.0
4.0
June 1979
Mar. 1983
May 1983
or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to such
discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.
A64
3.27
International Statistics • July 1984
FOREIGN SHORT-TERM INTEREST RATES
Percent per annum, averages of daily figures
1983
Country, or type
1
2
3
4
5
6
7
8
9
10
1981
1982
1984
1983
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
Eurodollars
United Kingdom
Canada
Germany
Switzerland
16.79
13.86
18.84
12.05
9.15
12.24
12.21
14.38
8.81
5.04
9.57
10.06
9.48
5.73
4.11
10.08
9.34
9.83
6.43
4.29
9.78
9.40
9.84
6.07
3.65
9.91
9.35
9.85
5.91
3.47
10.40
8.90
10.40
5.82
3.60
10.83
8.84
10.75
5.81
3.61
11.53
9.32
11.52
6.08
3.83
11.68
9.43
11.86
6.11
4.15
Netherlands
France
Italy
Belgium
Japan
11.52
15.28
19.98
15.28
7.58
8.26
14.61
19.99
14.10
6.84
5.58
12.44
18.95
10.51
6.49
6.20
12.16
17.75
10.50
6.45
6.01
12.22
17.75
10.68
6.35
5.95
12.36
17.40
11.43
6.34
6.09
12.53
17.28
12.02
6.41
6.04
12.46
17.38
11.66
6.26
6.05
12.16
16.80
11.80
6.24
6.09
12.23
16.75
11.90
6.35
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.
3.28
F O R E I G N E X C H A N G E RATES
Currency units per dollar
1984
Country/currency
1981
1982
1983
Jan.
Feb.
Mar.
Apr.
May
June
Australia/dollar 1
Austria/schilling
Belgium/franc
Brazil/cruzeiro
Canada/dollar
China, P.R./yuan
Denmark/krone
114.95
15.948
37.194
92.374
1.1990
1.7031
7.1350
101.65
17.060
45.780
179.22
1.2344
1.8978
8.3443
90.14
17.968
51.121
573.27
1.2325
1.9809
9.1483
90.60
19.815
57.354
1022.81
1.2484
2.0490
10.1793
93.48
19.028
55.279
1131.37
1.2480
2.0628
9.8549
95.13
18.285
53.135
1266.64
1.2697
2.0646
9.5175
92.31
18.630
54.078
1387.52
1.2796
2.0929
9.7311
90.61
19.316
55.925
1497.64
1.2944
2.1866
10.0618
88.26
19.226
55.840
1,643.81
1.3040
2.2178
10.050
8
9
10
11
12
13
14
15
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Ireland/pound 1
Israel/shekel
4.3128
5.4396
2.2631
n.a.
5.5678
8.6807
161.32
n.a.
4.8086
6.5793
2.428
66.872
6.0697
9.4846
142.05
24.407
5.5636
7.6203
2.5539
87.895
7.2569
10.1040
124.81
55.865
5.9385
8.5948
2.8110
102.601
7.7968
10.7152
110.20
116.728
5.7892
8.3051
2.6984
101.80
7.7883
10.744
114.21
130.21
5.6136
8.0022
2.5973
102.40
7.7942
10.714
117.88
146.40
5.6434
8.1411
2.6474
104.89
7.8073
10.820
115.67
168.76
5.8115
8.4435
2.7484
108.37
7.8159
11.017
111.75
191.56
5.8182
8.4181
2.7397
108.85
7.8131
11.064
111.67
215.06
16
17
18
19
20
21
22
23
24
Italy/lira
Japan/yen
Malaysia/ringgit
Mexico/peso
Netherlands/guilder
New Zealand/dollar 1
Norway/krone
Philippines/peso
Portugal/escudo
1138.60
220.63
2.3048
24.547
2.4998
86.848
5.7430
7.8113
61.739
1354.00
249.06
2.3395
72.990
2.6719
75.101
6.4567
8.5324
80.101
1519.30
237.55
2.3204
155.01
2.8543
66.790
7.3012
11.0940
111.610
1706.63
233.80
2.3411
166.33
3.1602
64.860
7.8763
14-050
136.29
1666.39
233.60
2.3363
168.49
3.0455
65.810
7.6937
14.050
135.01
1614.17
225.27
2.2933
172.93
2.9326
66.714
7.5028
14.186
131.70
1638.48
225.20
2.2904
179.07
2.9864
65.834
7.5992
14.257
134.46
25
26
27
28
29
30
31
32
33
34
35
Singapore/dollar
South Africa/rand 1
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/Dollar
Thailand/baht
United Kingdom/pound 1
Venezuela/bolivar
2.1053
114.77
n.a.
92.396
18.967
5.0659
1.9674
n.a.
21.731
202.43
4.2781
2.1406
92.297
731.93
110.09
20.756
6.2838
2.0327
n.a.
23.014
174.80
4.2981
2.1136
89.85
776.04
143.500
23.510
7.6717
2.1006
n.a.
22.991
151.59
10.6840
2.1309
79.54
800.33
159.832
25.181
8.1782
2.2380
40.202
23.006
140.76
13.021
2.1279
81.31
799.06
154.20
25.270
7.9976
2.2050
40.236
23.000
144.17
13.023
2.0893
82.10
794.51
149.68
25.177
7.7323
2.1490
40.078
23.004
145.57
13.470
102.94
116.57
125.34
135.07
131.71
128.07
1
2
3
4
5
6
7
230.48
2.3029
198.35
3.0926
64.892
7.8100
14.262
139.85
1,694.80
233.57
2.3109
196.54
3.0882
64.205
7.8162
14.250
141.83
2.0853
80.19
796.41
150.26
25.133
7.8444
2.1913
39.784
23.010
142.10
14.375
2.1006
78.15
801.54
154.03
25.161
8.0782
2.2680
39.716
23.010
138.94
15.661
2.1122
76.49
802.20
154.75
25.176
8.0993
2.2832
39.843
23.010
137.70
14.709
130.01
133.99
134.31
1696.32
MEMO
United States/dollar 2
1. Value in U.S. cents.
2. Index of weighted-average exchange value of U.S. dollar against currencies
of other G-10 countries plus Switzerland. March 1973 = 100. Weights are 1972-76
global trade of each of the 10 countries. Series revised as of August 1978. For
description and back data, see "Index of the Weighted-Average Exchange Value
of the U.S. Dollar: Revision" on p. 700 of the August 1978 BULLETIN.
NOTE. Averages of certified noon buying rates in N e w York for cable tranfers.
65
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE TO TABULAR
Symbols and
c
e
p
r
*
PRESENTATION
Abbreviations
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when
about half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000
when the smallest unit given is millions)
General
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed
issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
STATISTICAL
obligations of the Treasury. "State and local government"
also includes municipalities, special districts, and other political subdivisions.
In some of the tables details do not add to totals because of
rounding.
RELEASES
List Published Semiannually,
with Latest Bulletin
Reference
Issue
June 1984
Anticipated schedule of release dates for periodic releases
SPECIAL
TABLES
Published Irregularly,
Assets
Assets
Assets
Assets
Assets
Assets
Assets
Assets
and
and
and
and
and
and
and
and
Page
A83
liabilities
liabilities
liabilities
liabilities
liabilities
liabilities
liabilities
liabilities
of
of
of
of
of
of
of
of
with Latest Bulletin
commercial banks,
commercial banks,
commercial banks,
commercial banks,
U.S. branches and
U.S. branches and
U.S. branches and
U.S. branches and
Reference
March 31, 1983
June 30, 1983
September 30, 1983
December 31, 1983
agencies of foreign banks,
agencies of foreign banks,
agencies of foreign banks,
agencies of foreign banks,
March 31, 1983
June 30, 1983
September 30, 1983
December 31, 1983
August
December
March
June
August
December
March
June
1983
1983
1984
1984
1983
1983
1984
1984
A70
A68
A68
A66
A76
A74
A74
All
66
Federal Reserve Board of Governors
PRESTON MARTIN,
Chairman
Vice Chairman
OFFICE OF BOARD
MEMBERS
PAUL A . VOLCKER,
JOSEPH R. COYNE, Assistant to the Board
DONALD J. WINN, Assistant to the Board
S T E V E N M . ROBERTS, Assistant to the Chairman
F R A N K O ' B R I E N , J R . , Deputy Assistant to the Board
ANTHONY F . COLE, Special Assistant to the Board
W I L L I A M R . JONES, Special Assistant to the Board
NAOMI P. SALUS, Special Assistant to the Board
HENRY C.
DIVISION
MICHAEL BRADFIELD, General Counsel
J. VIRGIL MATTINGLY, JR., Associate General Counsel
GILBERT T . S C H W A R T Z , Associate General Counsel
RICHARD M . ASHTON, Assistant General Counsel
NANCY P. JACKLIN, Assistant General Counsel
MARYELLEN A. BROWN, Assistant to the General Counsel
OFFICE OF THE
SECRETARY
W I L L I A M W . W I L E S , Secretary
BARBARA R . L O W R E Y , Associate
Secretary
JAMES M C A F E E , Associate
Secretary
DIVISION OF CONSUMER
AND COMMUNITY
AFFAIRS
PARTEE
OFFICE OF STAFF DIRECTOR
MONETARY AND FINANCIAL
FOR
POLICY
STEPHEN H . AXILROD, Staff Director
DONALD L . KOHN, Deputy Staff Director
S T A N L E Y J . S I G E L , Assistant to the Board
NORMAND R . V . BERNARD, Special Assistant
DIVISION
LEGAL
WALLICH
J. CHARLES
OF RESEARCH
AND
STATISTICS
JAMES L . KICHLINE, Director
E D W A R D C . E T T I N , Deputy Director
MICHAEL J . PRELL, Deputy Director
JOSEPH S . Z E I S E L , Deputy Director
JARED J . E N Z L E R , Associate
Director
ELEANOR J . S T O C K W E L L , Associate
Director
DAVID E . L I N D S E Y , Deputy Associate
Director
FREDERICK M . STRUBLE, Deputy Associate
Director
H E L M U T F . W E N D E L , Deputy Associate
Director
MARTHA B E T H E A , Assistant
Director
ROBERT M . FISHER, Assistant
Director
SUSAN J . LEPPER, Assistant
Director
THOMAS D . SIMPSON, Assistant
Director
L A W R E N C E S L I F M A N , Assistant
Director
STEPHEN P. T A Y L O R , Assistant
Director
PETER A . T I N S L E Y , Assistant
Director
LEVON H . GARABEDIAN, Assistant
Director
(Administration)
GRIFFITH L . GARWOOD, Director
J E R A U L D C . K L U C K M A N , Associate
Director
G L E N N E . L O N E Y , Assistant
Director
DOLORES S . SMITH, Assistant
Director
DIVISION
DIVISION OF BANKING
SUPERVISION AND
REGULATION
ROBERT F. GEMMILL, Staff Adviser
SAMUEL PIZER, Staff Adviser
PETER HOOPER, III, Assistant
Director
DAVID H . HOWARD, Assistant
Director
RAYMOND L U B I T Z , Assistant
Director
RALPH W . SMITH, J R . , Assistant
Director
JOHN E . R Y A N , Director
W I L L I A M T A Y L O R , Deputy Director
FREDERICK R . D A H L , Associate
Director
DON E. KLINE, Associate
Director
Director
Director
Director
Credit Officer
J A C K M . EGERTSON, Assistant
ROBERT S . PLOTKIN, Assistant
SIDNEY M . SUSSAN, Assistant
L A U R A M . HOMER, Securities
to the Board
OF INTERNATIONAL
FINANCE
E D W I N M . TRUMAN, Director
L A R R Y J . PROMISEL, Senior Associate
Director
CHARLES J . SIEGMAN, Senior Associate
Director
D A L E W . HENDERSON, Associate
Director
67
and Official Staff
EMMETT J. RICE
LYLE E.
MARTHA R.
SEGER
GRAMLEY
OFFICE OF
STAFF DIRECTOR
FOR
MANAGEMENT
S . DAVID FROST, Staff Director
E D W A R D T . M U L R E N I N , Assistant
STEPHEN R . MALPHRUS, Assistant
Automation
and
Staff Director
Staff Director for Office
Technology
EEO Programs
PORTIA W . THOMPSON,
OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK
ACTIVITIES
THEODORE E . A L L I S O N , Staff Director
JOSEPH W . D A N I E L S , S R . , Advisor, Equal
Opportunity
Officer
DIVISION OF FEDERAL
BANK
OPERATIONS
DIVISION
OF DATA
ROBERT J. ZEMEL, Assistant
OF
Director
PERSONNEL
DAVID L . SHANNON, Director
JOHN R . W E I S , Assistant
Director
CHARLES W . WOOD, Assistant
Director
OFFICE OF THE
CONTROLLER
GEORGE E . LIVINGSTON, Controller
BRENT L . B O W E N , Assistant
Controller
DIVISION
OF SUPPORT
SERVICES
ROBERT E . F R A Z I E R , Director
W A L T E R W . K R E I M A N N , Associate
GEORGE M. LOPEZ, Assistant
Director
Director
*On loan from the Federal Reserve Bank of New York.
RESERVE
PROCESSING
CHARLES L . HAMPTON, Director
BRUCE M . B E A R D S L E Y , Deputy
Director
G L E N N L . CUMMINS, Assistant
Director
N E A L H . H I L L E R M A N , Assistant
Director
Director
RICHARD J . MANASSERI, Assistant
E L I Z A B E T H B . RIGGS, Assistant
Director
W I L L I A M C . SCHNEIDER, J R . , Assistant
Director
DIVISION
Employment
Programs
C L Y D E H . FARNSWORTH, J R . , Director
ELLIOTT C . M C E N T E E , Associate
Director
DAVID L . ROBINSON, Associate
Director
C . W I L L I A M SCHLEICHER, J R . , Associate
Director
W A L T E R A L T H A U S E N , Assistant
Director
CHARLES W . B E N N E T T , Assistant
Director
A N N E M . D E B E E R , Assistant
Director
JACK DENNIS, J R . , Assistant
Director
E A R L G . HAMILTON, Assistant
Director
* JOHN F . SOBALA, Assistant
Director
A68
Federal Reserve Bulletin • July 1984
Federal Open Market Committee
FEDERAL
OPEN MARKET
PAUL A . VOLCKER,
COMMITTEE
A N T H O N Y M . SOLOMON,
Chairman
E D W A R D G . BOEHNE
ROBERT H . BOYKIN
E . G E R A L D CORRIGAN
L Y L E E . GRAMLEY
K A R E N N . HORN
PRESTON MARTIN
STEPHEN H . AXILROD, Staff Director
NORMAND R . V . B E R N A R D , Assistant
N A N C Y M . S T E E L E , Deputy Assistant
and Secretary
Secretary
Secretary
MICHAEL BRADFIELD, General Counsel
J A M E S H . O L T M A N , Deputy General Counsel
JAMES L . KICHLINE,
Economist
EDWIN M . TRUMAN,
Economist
(International)
JOSEPH E. BURNS, Associate
Economist
JOHN M. DAVIS, Associate
Economist
PETER D . STERNLIGHT, Manager
S A M Y . CROSS, Manager for
FEDERAL ADVISORY
J . C H A R L E S PARTEE
EMMETT J. RICE
MARTHA R . S E G E R
HENRY C . WALLICH
RICHARD G . D A V I S ,
Associate Economist
DONALD L. KOHN, Associate Economist
RICHARD W . L A N G , Associate
Economist
DAVID E. LINDSEY, Associate Economist
M I C H A E L J . PRELL, Associate
Economist
C H A R L E S J . S I E G M A N , Associate
Economist
GARY H. STERN, Associate Economist
JOSEPH S . Z E I S E L , Associate
Economist
for Domestic Operations, System Open Market Account
Foreign Operations, System Open Market Account
COUNCIL
JOHN G . MCCOY,
President
JOSEPH J . PINOLA, Vice President
V I N C E N T C . B U R K E , J R . , N . B E R N E H A R T , AND L E W I S T . PRESTON,
BARRY F. SULLIVAN, Seventh District
WILLIAM H. BOWEN, Eighth District
ROBERT L. NEWELL, First District
LEWIS T. PRESTON, Second District
GEORGE A. BUTLER, Third District
JOHN G. MCCOY, Fourth District
E . PETER GILLETTE, JR., N i n t h D i s t r i c t
N. BERNE HART, Tenth District
NAT S. ROGERS, Eleventh District
JOSEPH J. PINOLA, Twelfth District
VINCENT C. BURKE, JR., F i f t h D i s t r i c t
PHILIP F. SEARLE, Sixth District
Directors
HERBERT V . PROCHNOW,
W I L L I A M J . KORSVIK,
Secretary
Associate Secretary
Vice Chairman
69
and Advisory Councils
CONSUMER
ADVISORY
COUNCIL
W I L L A R D P . OGBURN, Boston, Massachusetts,
TIMOTHY D. MARRINAN, Minneapolis, Minnesota,
RACHEL G. B R A T T , Medford, Massachusetts
JAMES G. B O Y L E , Austin, Texas
G E R A L D R . CHRISTENSEN, Salt Lake City, Utah
THOMAS L. C L A R K , JR., New York, New York
Chairman
Vice Chairman
FREDERICK H. M I L L E R , Norman, Oklahoma
MARGARET M. MURPHY, Columbia, Maryland
ROBERT F. MURPHY, Detroit, Michigan
L A W R E N C E S. OKINAGA, Honolulu, Hawaii
JEAN A. CROCKETT, Philadelphia, Pennsylvania
ELVA QUIJANO, San Antonio, Texas
MEREDITH FERNSTROM, New York, New York
A L L E N J. FISHBEIN, Washington, D.C.
E.C.A. FORSBERG, SR., Atlanta, Georgia
S T E V E N M. G E A R Y , Jefferson City, Missouri
RICHARD F. HALLIBURTON, Kansas City, Missouri
LOUISE M C C A R R E N HERRING, Cincinnati, Ohio
CHARLES C . HOLT, Austin, Texas
HARRY N. JACKSON, Minneapolis, Minnesota
K E N N E T H V. L A R K I N , San Francisco, California
J A N E T J . R A T H E , Portland, Oregon
J A N E T SCACCIOTTI, Providence, Rhode Island
G L E N D A G . SLOANE, W a s h i n g t o n , D . C .
HENRY J . SOMMER, Philadelphia,Pennsylvania
THRIFT INSTITUTIONS
ADVISORY
WINNIE F. TAYLOR, Gainesville, Florida
MICHAEL M. V A N BUSKIRK, Columbus, Ohio
CLINTON W A R N E , Cleveland, Ohio
FREDERICK T. W E I M E R , Chicago, Illinois
MERVIN WINSTON, Minneapolis, Minnesota
COUNCIL
THOMAS R . BOMAR, Miami, Florida, President
RICHARD H . DEIHL, Los Angeles, California, Vice President
JAMES A . A L I B E R , Detroit, Michigan
G E N E R . ARTEMENKO, Chicago, Illinois
J . MICHAEL C O R N W A L L , Dallas, Texas
JOHN R. EPPINGER, Villanova, Pennsylvania
NORMAN M. JONES, Fargo, North Dakota
ROBERT R . MASTERTON, Portland, Maine
JOHN T. MORGAN, New York, New York
FRED A . PARKER, Monroe, North Carolina
SARAH R . W A L L A C E ,
Newark, Ohio
70
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71
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W E L C O M E TO THE F E D E R A L R E S E R V E .
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RESTORING S T A B I L I T Y . REMARKS BY CHAIRMAN PAUL
A.
VOLCKER, April 1983.
CREDIT CARDS IN THE U . S . ECONOMY: THEIR IMPACT ON
COSTS, PRICES, AND R E T A I L S A L E S , July 1983. 114 pp.
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MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each.
REMARKS BY CHAIRMAN P A U L A . VOLCKER, AT THE A N N U AL D I N N E R OF THE J A P A N S O C I E T Y , June 1984.
Truth in Leasing
U.S. Currency
What Truth in Lending Means to You
STAFF STUDIES. Summaries
Bulletin
Only Printed in the
Studies and papers on economic and financial subjects that
are of general interest. Requests to obtain single copies of
the full text or to be added to the mailing list for the series
may be sent to Publications Services.
114. M U L T I B A N K HOLDING COMPANIES: R E C E N T E V I DENCE ON COMPETITION A N D PERFORMANCE IN
BANKING M A R K E T S , by Timothy J. Curry and John T.
Rose. Jan. 1982. 9 pp.
115. COSTS, S C A L E ECONOMIES, COMPETITION, AND PRODUCT M I X IN THE U . S . P A Y M E N T S M E C H A N I S M , b y
David B. Humphrey. Apr. 1982. 18 pp.
116. DIVISIA M O N E T A R Y A G G R E G A T E S :
COMPILATION,
D A T A , AND HISTORICAL BEHAVIOR, b y W i l l i a m A .
Barnett and Paul A. Spindt. May 1982. 82 pp. Out of
print.
117. T H E COMMUNITY R E I N V E S T M E N T A C T AND CREDIT
ALLOCATION, by Glenn Canner. June 1982. 8 pp.
118. INTEREST R A T E S A N D TERMS ON CONSTRUCTION
L O A N S AT COMMERCIAL B A N K S , by David F. Seiders.
July 1982. 14 pp.
119. S T R U C T U R E - P E R F O R M A N C E STUDIES IN BANKING:
A N U P D A T E D S U M M A R Y AND E V A L U A T I O N , b y S t e -
phen A. Rhoades. Aug. 1982. 15 pp.
120. FOREIGN SUBSIDIARIES OF U . S . B A N K I N G ORGANIZA-
CONSUMER EDUCATION
PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies
available without charge.
Alice in Debitland
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, Lawyers, Small Retailers, and Others Who May Provide Incidental Credit
The Equal Credit Opportunity Act and . . . Women
Fair Credit Billing
Federal Reserve Glossary
Guide to Federal Reserve Regulations
How to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You Use A Credit Card
Instructional Materials of the Federal Reserve System
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Organization and Advisory Committees
TIONS, by James V. Houpt and Michael G. Martinson.
Oct. 1982. 18 pp. Out of print.
121. REDLINING: RESEARCH AND F E D E R A L
LEGISLATIVE
RESPONSE, by Glenn B. Canner. Oct. 1982. 20 pp.
122. B A N K C A P I T A L T R E N D S A N D F I N A N C I N G , by Samuel
H. Talley. Feb. 1983. 19 pp. Out of print.
123. F I N A N C I A L TRANSACTIONS WITHIN B A N K
HOLDING
COMPANIES, by John T. Rose and Samuel H. Talley.
May 1983. 11 pp.
124. INTERNATIONAL B A N K I N G F A C I L I T I E S AND THE E U RODOLLAR M A R K E T , by Henry S. Terrell and Rodney
H. Mills. August 1983. 14 pp.
125. SEASONAL A D J U S T M E N T OF THE W E E K L Y M O N E T A R Y
AGGREGATES: A M O D E L - B A S E D APPROACH, b y D a v i d
A. Pierce, Michael R. Grupe, and William P. Cleveland. August 1983. 23 pp.
126. DEFINITION AND M E A S U R E M E N T OF E X C H A N G E M A R -
KET INTERVENTION, by Donald B. Adams and Dale
W. Henderson. August 1983. 5 pp.
* 1 2 7 . U . S . E X P E R I E N C E WITH E X C H A N G E M A R K E T INTERVENTION: J A N U A R Y - M A R C H 1 9 7 5 , by Margaret L .
Greene.
* 128. U . S . E X P E R I E N C E WITH E X C H A N G E M A R K E T INTERVENTION: SEPTEMBER 1 9 7 7 - O c T O B E R 1 9 8 1 , by Marga-
ret L. Greene.
* 1 2 9 . U . S . E X P E R I E N C E WITH E X C H A N G E M A R K E T INTERVENTION: OCTOBER I98O-OCTOBER 1 9 8 1 , by Margaret
L. Greene.
72
1 3 0 . E F F E C T S OF E X C H A N G E R A T E VARIABILITY ON INTERNATIONAL T R A D E AND OTHER ECONOMIC V A R I A BLES: A R E V I E W OF THE LITERATURE, by Victoria S .
Farrell with Dean A. DeRosa and T. Ashby McCown.
January 1984. 21 pp.
131. CALCULATIONS OF PROFITABILITY FOR U . S . D O L L A R DEUTSCHE MARK INTERVENTION, by Laurence R .
Jacobson. October 1983. 8 pp.
132. TIME-SERIES STUDIES OF THE RELATIONSHIP BETWEEN E X C H A N G E R A T E S AND INTERVENTION: A
REVIEW OF THE TECHNIQUES AND LITERATURE, b y
Kenneth Rogoff. October 1983. 15 pp.
1 3 3 . RELATIONSHIPS AMONG EXCHANGE R A T E S , INTERVENTION, AND INTEREST RATES: A N EMPIRICAL IN-
VESTIGATION, by Bonnie E. Loopesko. November
1983. 20 pp.
1 3 4 . S M A L L EMPIRICAL MODELS OF E X C H A N G E MARKET
INTERVENTION: A R E V I E W OF THE LITERATURE, b y
Ralph W. Tryon. October 1983. 14 pp.
* 1 3 5 . S M A L L EMPIRICAL MODELS OF E X C H A N G E MARKET
INTERVENTION: APPLICATIONS TO C A N A D A , GERMA-
NY, AND JAPAN, by Deborah J. Danker, Richard A.
Haas, Dale W. Henderson, Steven A. Symansky, and
Ralph W. Tryon.
1 3 6 . T H E E F F E C T S OF F I S C A L POLICY ON THE U . S . ECONO-
MY, by Darrell Cohen and Peter B. Clark. January
1984. 16 pp.
1 3 7 . T H E IMPLICATIONS FOR B A N K MERGER POLICY OF
FINANCIAL DEREGULATION, INTERSTATE BANKING,
AND
FINANCIAL
SUPERMARKETS,
Rhoades. February 1984. 8 pp.
by
Stephen
A.
138. ANTITRUST L A W S , JUSTICE DEPARTMENT GUIDELINES, AND THE LIMITS OF CONCENTRATION IN L O CAL BANKING MARKETS, by James Burke. June 1984.
14 pp.
T h e availability of these studies will be announced in a
forthcoming BULLETIN.
REPRINTS OF BULLETIN
ARTICLES
Most of the articles reprinted do not exceed 12 pages.
Survey of Finance Companies. 1980. 5/81.
Bank Lending in Developing Countries. 9/81.
The Commercial Paper Market since the Mid-Seventies. 6/82.
Applying the Theory of Probable Future Competition. 9/82.
International Banking Facilities. 10/82.
New Federal Reserve Measures of Capacity and Capacity
Utilization. 7/83.
Foreign Experience with Targets for Money Growth. 10/83.
Intervention in Foreign Exchange Markets: A Summary of
Ten Staff Studies. 11/83.
A Financial Perspective on Agriculture. 1/84.
U.S. International Transactions in 1983. 4/84.
73
Index to Statistical Tables
References
are to pages A3 through A64 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers, 9, 22, 24
Agricultural loans, commercial banks, 18, 19, 23
Assets and liabilities (See also Foreigners)
Banks, by classes, 17-19
Domestic finance companies, 35
Federal Reserve Banks, 10
Foreign banks, U.S. branches and agencies, 20
Nonfinancial corporations, 34
Savings institutions, 26
Automobiles
Consumer installment credit, 38, 39
Production, 44, 45
BANKERS acceptances, 9, 22, 24
Bankers balances, 17-19 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 32
Rates, 3
Branch banks, 14, 20, 52
Business activity, nonfinancial, 42
Business expenditures on new plant and equipment, 34
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 42
Capital accounts
Banks, by classes, 17
Federal Reserve Banks, 10
Central banks, discount rates, 63
Certificates of deposit, 20, 24
Commercial and industrial loans
Commercial banks, 15, 20, 23
Weekly reporting banks, 18-20
Commercial banks
Assets and liabilities, 17-19
Business loans, 23
Commercial and industrial loans, 15, 20, 23
Consumer loans held, by type, and terms, 38, 39
Loans sold outright, 19
Nondeposit fund, 16
Number, by classes, 17
Real estate mortgages held, by holder and property, 37
Time and savings deposits, 3
Commercial paper, 3, 22, 24, 35
Condition statements (See Assets and liabilities)
Construction, 42, 46
Consumer installment credit, 38, 39
Consumer prices, 42, 47
Consumption expenditures, 48, 49
Corporations
Profits and their distribution, 33
Security issues, 32, 62
Cost of living (See Consumer prices)
Credit unions, 26, 38 (See also Thrift institutions)
Currency and coin, 17
Currency in circulation, 4, 13
Customer credit, stock market, 25
DEBITS to deposit accounts, 14
Debt (See specific types of debt or securities)
Demand deposits
Adjusted, commercial banks, 14
Banks, by classes, 17-20
Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 21
Turnover, 14
Depository institutions
Reserve requirements, 7
Reserves and related items, 3, 4, 5, 12
Deposits (See also specific types)
Banks, by classes, 3, 17-20, 26
Federal Reserve Banks, 4, 10
Turnover, 14
Discount rates at Reserve Banks and at foreign central
banks (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 33
EMPLOYMENT, 42, 43
Eurodollars, 24
FARM mortgage loans, 37
Federal agency obligations, 4, 9, 10, 11, 30
Federal credit agencies, 31
Federal finance
Debt subject to statutory limitation and types and
ownership of gross debt, 29
Receipts and outlays, 27, 28
Treasury financing of surplus, or deficit, 27
Treasury operating balance, 27
Federal Financing Bank, 27, 31
Federal funds, 3, 5, 16, 18, 19, 20, 24, 27
Federal Home Loan Banks, 31
Federal Home Loan Mortgage Corporation, 31, 36, 37
Federal Housing Administration, 31, 36, 37
Federal Land Banks, 37
Federal National Mortgage Association, 31, 36, 37
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 4, 10, 11, 29
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federally sponsored credit agencies, 31
Finance companies
Assets and liabilities, 35
Business credit, 35
Loans, 18, 38, 39
Paper, 22, 24
Financial institutions
Loans to, 18, 19, 20
Selected assets and liabilities, 26
Float, 4
Flow of funds, 40, 41
Foreign banks, assets and liabilities of U.S. branches and
agencies, 20
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 18, 19
Foreign exchange rates, 64
Foreign trade, 51
Foreigners
Claims on, 52, 54, 57, 58, 59, 61
Liabilities to, 19, 51, 52-56, 60, 62, 63
74
GOLD
Certificate account, 10
Stock, 4, 51
Government National Mortgage Association, 31, 36, 37
Gross national product, 48, 49
HOUSING, new and existing units, 46
INCOME, personal and national, 42, 48, 49
Industrial production, 42, 44
Installment loans, 38, 39
Insurance companies, 26, 29, 37
Interbank loans and deposits, 17
Interest rates
Bonds, 3
Business loans of banks, 23
Federal Reserve Banks, 3, 6
Foreign central banks and foreign countries, 63, 64
Money and capital markets, 3, 24
Mortgages, 3, 36
Prime rate, commercial banks, 22
Time and savings deposits, 8
International capital transactions of United States, 50-63
International organizations, 54, 55-57, 60-63
Inventories, 48
Investment companies, issues and assets, 33
Investments (See also specific types)
Banks, by classes, 17, 19, 26
Commercial banks, 3, 15, 17-19, 20, 37
Federal Reserve Banks, 10, 11
Savings institutions, 26, 37
LABOR force, 43
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 17-19
Commercial banks, 3, 15, 17-19, 20, 23
Federal Reserve Banks, 4, 5, 6, 10, 11
Insured or guaranteed by United States, 36, 37
Savings institutions, 26, 37
MANUFACTURING
Capacity utilization, 42
Production, 42, 45
Margin requirements, 25
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 5
Reserve requirements, 7
Mining production, 45
Mobile homes shipped, 46
Monetary and credit aggregates, 3, 12
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, 8, 18-19, 26, 29, 37, 38 (See also
Thrift institutions)
NATIONAL defense outlays, 28
National income, 48
OPEN market transactions, 9
PERSONAL income, 49
Prices
Consumer and producer, 42, 47
Stock market, 25
Prime rate, commercial banks, 22
Producer prices, 42, 47
Production, 42, 44
Profits, corporate, 33
REAL estate loans
Banks, by classes, 15, 18, 19, 37
Rates, terms, yields, and activity, 3, 36
Savings institutions, 26
Type of holder and property mortgaged, 37
Repurchase agreements, 5, 16, 18, 19, 20
Reserve requirements, 7
Reserves
Commercial banks, 17
Depository institutions, 3, 4, 5, 12
Federal Reserve Banks, 10
U.S. reserve assets, 51
Residential mortgage loans, 36
Retail credit and retail sales, 38, 39, 42
SAVING
Flow of funds, 40, 41
National income accounts, 49
Savings and loan associations, 8, 26, 37, 38, 40 (See also
Thrift institutions)
Savings deposits (See Time and savings deposits)
Securities (See specific types)
Federal and federally sponsored credit agencies, 31
Foreign transactions, 62
New issues, 32
Prices, 25
Special drawing rights, 4, 10, 50, 51
State and local governments
Deposits, 18, 19
Holdings of U.S. government securities, 29
New security issues, 32
Ownership of securities issued by, 18, 19, 26
Rates on securities, 3
Stock market, 25
Stocks (See also Securities)
New issues, 32
Prices, 25
Student Loan Marketing Association, 31
TAX receipts, federal, 28
Thrift institutions, 3 (See also Credit unions, Mutual
savings banks, and Savings and loan associations)
Time and savings deposits, 3, 8, 13, 16, 17-20
Trade, foreign, 51
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 10, 27
Treasury operating balance, 27
UNEMPLOYMENT, 43
U.S. government balances
Commercial bank holdings, 17, 18, 19
Treasury deposits at Reserve Banks, 4, 10, 27
U.S. government securities
Bank holdings, 16, 17-19, 20, 29
Dealer transactions, positions, and financing, 30
Federal Reserve Bank holdings, 4, 10, 11, 29
Foreign and international holdings and transactions, 10,
29, 63
Open market transactions, 9
Outstanding, by type and holder, 26, 29
Rates, 3, 24
U.S. international transactions, 50-63
Utilities, production, 45
VETERANS Administration, 36, 37
WEEKLY reporting banks, 18-20
Wholesale (producer) prices, 42, 47
YIELDS (See Interest rates)
75
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK, Chairman
branch, or facility
Zip
Deputy Chairman
President
First Vice President
BOSTON*
02106
Robert P. Henderson
Thomas I. Atkins
Frank E. Morris
Robert W. Eisenmenger
NEW YORK*
10045
John Brademas
Gertrude G. Michelson
M. Jane Dickman
Anthony M. Solomon
Thomas M. Timlen
Buffalo
14240
John T. Keane
PHILADELPHIA
19105
Robert M. Landis
Nevius M. Curtis
Edward G. Boehne
Richard L. Smoot
CLEVELAND*
44101
William H. Knoell
E. Mandell de Windt
Robert E. Boni
Milton G. Hulme, Jr.
Karen N. Horn
William H. Hendricks
William S. Lee
Leroy T. Canoles, Jr.
Robert L. Tate
Henry Ponder
Robert P. Black
Jimmie R. Monhollon
John H. Weitnauer, Jr.
Bradley Currey, Jr.
Martha A. Mclnnis
Jerome P. Keuper
Sue McCourt Cobb
C. Warren Neel
Sharon A. Perlis
Robert P. Forrestal
Jack Guynn
Stanton R. Cook
Edward F. Brabec
Russell G. Mawby
Silas Keehn
Daniel M. Doyle
W.L. Hadley Griffin
Mary P. Holt
Sheffield Nelson
Sister Eileen M. Egan
Patricia W. Shaw
Theodore H. Roberts
Joseph P. Garbarini
William G. Phillips
John B. Davis, Jr.
Ernest B. Corrick
E. Gerald Corrigan
Thomas E. Gainor
Doris M. Drury
Irvine O. Hockaday, Jr.
James E. Nielson
Patience Latting
Robert G. Lueder
Roger Gufifey
Henry R. Czerwinski
Robert D. Rogers
John V. James
Mary Carmen Saucedo
Paul N. Howell
Lawrence L. Crum
Robert H. Boykin
William H. Wallace
Caroline L. Ahmanson
Alan C. Furth
Bruce M. Schwaegler
Paul E. Bragdon
Wendell J. Ashton
John W. Ellis
John J. Balles
Richard T. Griffith
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30301
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Vice President
in charge of branch
Charles A. Cerino
Harold J. Swart
Robert D. McTeer, Jr.
Albert D. Tinkelenberg
John G. Stoides
Fred R. Herr
James D. Hawkins
Patrick K. Barron
Jeffrey J. Wells
Henry H. Bourgaux
William C. Conrad
John F. Breen
James E. Conrad
Paul I. Black, Jr.
Robert F. McNellis
Wayne W. Martin
William G. Evans
Robert D. Hamilton
Joel L. Koonce, Jr.
J.Z. Rowe
Thomas H. Robertson
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.
76
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
April 1984
LEGEND
"""" Boundaries of Federal Reserve Districts
Boundaries of Federal Reserve Branch
Territories
®
Federal Reserve Bank Cities
•
Federal Reserve Branch Cities
Federal Reserve Bank Facility
Q
Board of Governors of the Federal Reserve
System
Publications of Interest
FEDERAL RESERVE
PUBLICATIONS
CONSUMER
CREDIT
The Federal Reserve Board publishes a series of
pamphlets covering individual credit laws and topics,
as pictured below. The series includes such subjects as
how the Equal Credit Opportunity Act protects women against discrimination in their credit dealings, how
to use a credit card, and how to use Truth in Lending
information to compare credit costs.
The Board also publishes the Consumer Handbook
to Credit
Protection
Laws,
a complete guide to con-
sumer credit protections. This 44-page booklet explains how to use the credit laws to shop for credit,
apply for it, keep up credit ratings, and complain about
an unfair deal.
Protections offered by the Electronic Fund Transfer
Act are explained in Alice in Debitland. This booklet
offers tips for those using the new "paperless" systems for transferring money.
Copies of consumer publications are available free
of charge from Publications Services, Mail Stop 138,
Board of Governors of the Federal Reserve System,
Washington, D.C. 20551. Multiple copies for classroom use are also available free of charge.
The Equal Credit
Opportunity Act
and . . .
TRUTH IN LE4SIN6
What
Ihithln
Lending
Means
To You
Publications of Interest
FEDERAL RESERVE REGULATORY
SERVICE
To promote public understanding of its regulatory
functions, the Board publishes the Federal Reserve
Regulatory Service, a three-volume looseleaf service
containing all Board regulations and related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are
published separately as handbooks pertaining to monetary policy, securities credit, and consumer affairs.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated at least monthly, and each
contains conversion tables, citation indexes, and a
subject index.
T h e Monetary
Policy
and Reserve
Requirements
Handbook contains Regulations A, D, and Q plus
related materials. For convenient reference, it also
contains the rules of the Depository Institutions
Deregulation Committee.
T h e Securities
Credit
Transactions
Handbook
con-
tains Regulations G, T, U, and X, dealing with extensions of credit for the purchase of securities, together
with all related statutes, Board interpretations, rulings, and staff opinions. Also included is the Board's
list of OTC margin stocks.
T h e Consumer
and Community
Affairs
Handbook
contains Regulations B, C, E, M, Z, AA, and BB and
associated materials.
For domestic subscribers, the annual rate is $175 for
the Federal
Reserve
Regulatory
Service
a n d $60 f o r
each handbook. For subscribers outside the United
States, the price including additional air mail costs is
$225 for the Service and $75 for each Handbook. All
subscription requests must be accompanied by a check
or money order payable to Board of Governors of the
Federal Reserve System. Orders should be addressed
to Publications Services, Mail Stop 138, Federal Reserve Board, 20th Street and Constitution Avenue,
N.W., Washington, D.C. 20551.
@FedFRASER