Full text of Federal Reserve Bulletin : June 1981

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V o l u m e 67 □ N u m b e r 6 □ J u n e 1981

FEDERAL RESERVE

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

P u b l ic a t io n s C o m m it t e e
Joseph R. Coyne, Chairman □ Stephen H. Axilrod □ John M. Denkler
Janet O. Hart □ James L. Kichline □ Neal L. Petersen □ Edwin M. Truman
N a o m i P . S a lu s ,

Coordinator

T h e F e d e r a l R e s e r v e B u l l e t i n is is s u e d m o n th ly u n d e r th e d ire c tio n o f th e s ta ff p u b lic a tio n s c o m m itte e . T h is c o m m itte e is r e s p o n s ib le f o r
o p in io n s e x p re s s e d e x c e p t in o fficial s ta te m e n ts a n d sig n ed a rtic le s . T h e a rtw o rk is p r o v id e d b y th e G ra p h ic C o m m u n ic a tio n s S e c tio n u n d e r th e
d ire c tio n o f P e te r G . T h o m a s . E d ito ria l s u p p o rt is fu rn is h e d b y th e E c o n o m ic E d itin g U n it h e a d e d b y M e n d e lle T . B e re n s o n .




Table of Contents
461 C h a n g i n g P a t t e r n s

of

H o u s in g

F in a n c e

Activity in housing markets has contracted
since 1978 in an environment of rapid infla­
tion and higher interest rates.
473 F i n a n c i a l D e v e l o p m e n t s o f B a n k
H o l d i n g C o m p a n i e s i n 1980

In 1980 bank holding companies operated in
a particularly difficult environment, but on
balance came through reasonably well.
480 F i n a n c i a l P e r f o r m a n c e o f S m a l l
B a n k s , 1 9 7 7 -8 0

In a period of many changes and some
adversities, the majority of small commer­
cial banks have fared well.
486 TREASUR Y A N D FED ERA L R E SE RVE
F o r e i g n E x c h a n g e O p e r a t i o n s .In t e r im R e p o r t

From February to April the U.S. dollar was
in strong, then weak, and finally heavy
demand; in mid-April the U.S. authorities
adopted a minimal intervention approach,
but the Federal Reserve continued to oper­
ate in the market as agent for other central
banks.
488 I n d u s t r i a l P r o d u c t i o n
Output rose 0.3 percent in May.
490 S t a t e m e n t t o C o n g r e s s
J. Charles Partee, Member, Board of Gov­
ernors, discusses the bank examination
process and recent efforts to make examina­
tions more cost effective and more uniform
among the federal agencies, and says the
Board strongly opposes a General Account­
ing Office proposal that examiners be




“ pooled” among the federal agencies, be­
fore the House Committee on Banking,
Finance and Urban Affairs, June 4, 1981.
494 A n n o u n c e m e n t s
Adoption of policy statement on sale of
third-party commercial paper by state mem­
ber banks.
Proposal on simplified Regulation Z (Truth
in Lending).
Release of list of foreign banks operating in
the United States and their home states.
Delegation of authority to General Counsel
for exceptions to the rules against interlock­
ing managements of depository institutions.
Nominations to Consumer Advisory Coun­
cil.
Amendment to Regulation T regarding
speculative holding of foreign currency in a
margin account.
Publication of Annual Report for 1980.
Changes in Board staff.
Admission of six state banks to membership
in the Federal Reserve System.
497 R e c o r d

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

At its meeting on March 31, 1981, the
Committee decided to seek behavior of
reserve aggregates associated with growth
of Ml-B over the period from March to
June at an annual rate of 5'/2 percent or
somewhat less, after allowance for the im­
pact of flows into NOW accounts, and
growth in M2 at an annual rate of about l0'/2
percent. In evaluating the behavior of the
aggregates, it was agreed that greater

weight than before would be given to the
behavior of M2. If it appeared during the
period before the next scheduled meeting
that fluctuations in the federal funds rate,
taken over a period of time, within a range
of 13 to 18 percent were likely to be incon­
sistent with the monetary and related re­
serve paths, the Manager of Domestic Op­
erations was promptly to notify the
Chairman, who would then decide whether
the situation called for supplementary in­
structions from the Committee.
In the telephone conference on May 6,
the Committee agreed that in the brief peri­
od before the next regular meeting sched­
uled for May 18, the reserve path would
continue to be set on the basis of the shortrun objectives for monetary growth estab­
lished at the March 31 meeting. It was noted
that for a time actual money growth might
be high relative to those objectives in view
of the recent performance of the monetary
aggregates. The Committee recognized that
short-term market interest rates might well
fluctuate around levels prevailing in recent
days and that the federal funds rate might
continue to exceed the upper end of the
range indicated for consultation at the pre­
vious meeting. The Committee agreed to
consult further if necessary to maintain
adequate restraint on the monetary and
credit aggregates.




507

L e g a l D e v e lo p m e n ts

Amendments to Regulations D and Q;
amendment to rules; various bank holding
company and bank merger orders; and
pending cases.
Al

F in a n c ia l

A3
A44
A52
A68

Domestic Financial Statistics
Domestic Nonfinancial Statistics
International Statistics
Special Tables

and

B

u s in e s s

S t a t is t ic s

A67 G u i d e

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

A ll B oard

of

Governors

and

S taff

A74 F e d e r a l O p e n M a r k e t C o m m i t t e e
and

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

A75 F e d e r a l R e s e r v e B a n k s , B r a n c h e s ,
and

O f f ic e s

A76 F e d e r a l R e s e r v e B o a r d
P

u b l ic a t io n s

A81 I n d e x
A83 M a p

to

of

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

Fed eral R eserve S

ystem

Changing Patterns of Housing Finance
This article was prepared by David F. Seiders o f
the Mortgage and Consumer Finance Section o f
the Division o f Research and Statistics.
Activity in housing markets has contracted since
1978 in an environment of rapid inflation and
higher interest rates. The housing downswing,
while substantial, has been limited by the persis­
tence of strong demands for shelter and by major
changes in institutions and practices in the resi­
dential mortgage markets. Some of the changes
in mortgage markets have been part of an evolu­
tionary process prompted by recurrent housing
cycles. Others have been sparked by persistent
inflation or by the high and volatile interest rates
during the past few years.
Regulatory and institutional adjustments in
mortgage markets have altered both the timing
and the magnitude of the impacts of monetary
restraint on housing activity and the channels
through which it operates. Specialized mortgage
lenders and mortgage borrowers may now com­
pete more freely for funds because ceilings on
deposit and mortgage interest rates have been
relaxed and because mortgage and bond markets
have become more closely linked by improve­
ments in secondary mortgage markets. More­
over, recent changes in mortgage commitment
practices and in the form of the mortgage instru­
ment have fostered a shift from lenders to bor­
rowers of some risks from interest rate fluctua­
tions and thus have helped to maintain the
attractiveness of mortgage investment.
With the crumbling of artificial constraints on
the availability of mortgage credit, interest cost
has become a more important determinant of the
volume of funds raised in the residential mort­
gage markets. But public and private initiatives
have been designed, in turn, to help prospective
borrowers overcome the constraints imposed by
record high market rates: lending standards have
been eased, schedules of mortgage repayments
have been altered, below-market rates have been



provided to borrowers, and outstanding low-rate
loans have been transferred to home buyers from
home sellers. At the same time, some measures
favoring borrowers have had adverse impacts on
the federal budget or exacerbated earnings prob­
lems of private and federally related mortgage
investors, and have prompted counteractions.
The market shares of major types of private
and public institutions have shifted somewhat as
a result of the many important developments on
the supply side of the residential mortgage mar­
kets. Further changes in the patterns of housing
finance will depend heavily on the course of
interest rates and decisions made at the federal
level concerning the proper place of housing in
the nation’s capital structure.

R e c e n t B e h a v io r

of

H o u s in g A c t iv it y

Total private housing starts have declined mark­
edly from the peak attained around the middle of
1978 (chart 1). The reduction in starts has been
concentrated in the market for single-family

1. Private housing starts

C e n s u s B u re a u s e a s o n a lly a d ju s te d m o n th ly d a ta a t a n n u a l r a te s
c o n v e rte d to th r e e - m o n th m o v in g a v e ra g e s b y th e F e d e r a l R e s e rv e .

46 2

F e d e r a l R e s e r v e B u lle tin □ J u n e 1981

2. Home sales and prices
Ratio scale, millions of units

previous housing cycle; following a sharp decline
around the middle of 1980, average home mort­
gage rates again climbed to more than 16 percent
by May of this year. Interest rates in the markets
for short-term construction loans to builders also
have posted records and have exhibited wide
swings (chart 3).
3. Home mortgage interest rates
Percent

M e rc h a n t-b u ild e r s a le s o f n e w h o m e s a s re p o rte d b y th e C e n s u s
B u re a u , a n d ex istin g h o m e s a le s a s re p o r te d b y th e N a tio n a l A s s o c ia ­
tio n o f R e a lto rs , b o th a t s e a s o n a lly a d ju s te d a n n u a l ra te s . A v e ra g e
p ric e s o f n e w a n d e x istin g h o m e s so ld , a lso r e p o rte d b y th e s e s o u rc e s ,
s e a s o n a lly a d ju s te d b y th e F e d e ra l R e s e r v e . S a le s a n d p ric e s c o n v e rt­
e d to th re e -m o n th m o v in g a v e ra g e s b y th e F e d e ra l R e s e rv e .

structures, and sales of both new and existing
single-family homes also have contracted. As the
volume of activity has fallen, the rate of increase
in average home prices has slowed somewhat
(chart 2).
The relative stability of construction activity in
the multifamily sector has reflected in part grow­
ing demands for condominium and cooperative
units by households seeking to achieve owner­
ship status at prices below those in the markets
for single-family structures. The multifamily sec­
tor also has received support from the federal
government by means of rental subsidies provid­
ed by the U.S. Department of Housing and
Urban Development (HUD) and mortgage inter­
est rate subsidies by the Government National
Mortgage Association (GNMA). And as vacancy
rates have fallen to historically low levels, some
nonsubsidized rental projects have been built,
especially in markets unfettered by rent controls.
Recent declines in the construction and sale of
houses have reflected major shifts in financial
market conditions. By the spring of last year,
interest rates on new commitments for fixedrate, long-term home mortgages had risen more
than 50 percent above the peak reached in the



L o n g -te rm m o rtg a g e r a te s a r e m o n th ly a v e ra g e s o f w e e k ly c o n tr a c t
ra te s o n n e w c o m m itm e n ts f o r fix e d -ra te
-y e a r c o n v e n tio n a l n ew h o m e m o rtg a g e s w ith
p e r c e n t lo a n -v a lu e ra tio s , a s r e p o r te d b y th e
F e d e ra l H o m e L o a n M o rtg a g e C o r p o r a tio n . C o n s tr u c tio n lo a n r a te s
a re a v e ra g e e ffe c tiv e y ie ld s o n c o n s tr u c tio n lo a n s m a d e b y c o m m e r­
cial b a n k s re p o rtin g to th e F e d e r a l R e s e r v e in th e q u a rte rly s u rv e y o f
te rm s o f b a n k le n d in g to b u s in e s s .

80

30

Considering the extent of increase in market
interest rates, mortgage and housing activity has
held up unusually well, compared with what
might have been expected on the basis of earlier
postwar experience. The share of residential
mortgages in total funds raised in U.S. credit
markets had declined only moderately through
the first quarter of 1981 (chart 4), and the posi­
tion of residential investment expenditures in the
gross national product so far has remained above
the shares recorded in 1974-75 (chart 5).
The performance of housing construction and
mortgage lending has reflected strong demands
associated with both demographic and social
factors that have supported household formation
and the attractiveness of housing as an inflation
hedge and an investment good. But important
developments on the supply side of the mortgage

Changing Patterns o f Housing Finance

4. Residential mortgage debt
Billions of dollars

0

Percent

Q u a rte rly m o rtg a g e d e b t b y ty p e o f s tr u c tu re e s tim a te d — a n d c o n ­
v e rte d to s e a s o n a lly a d ju s te d a n n u a l ra te s — b y th e F e d e ra l R e s e rv e as
re q u ire d to s u p p le m e n t r e p o r ts o f fe d e ra l a g e n c ie s a n d p riv a te
s o u rc e s . T o ta l fu n d s ra is e d in c re d it m a r k e ts re fe r to all fu n d s ra ise d in
U .S . c re d it m a rk e ts — e x c lu d in g e q u itie s — b y all n o n fin a n cial s e c to rs ,
b o th p riv a te a n d fo re ig n .

5. Residential investment expenditures

463

ed to magnify the impact of general credit re­
straint on the mortgage and housing markets
during the latter half of the 1960s and most of the
1970s. Ceilings on deposit rates payable by sav­
ings and loan associations and mutual savings
banks limited the ability of these specialized
mortgage finance institutions to compete effec­
tively for funds in periods of high market interest
rates, while ceilings on mortgage interest rates
worked to exclude many borrowers from the
market and hampered yield adjustments neces­
sary to attract mortgage funds from diversified
private institutions. The nonrate characteristics
of mortgage assets also proved to be unattractive
to many investors, further limiting arbitrage be­
tween the mortgage and other components of the
capital markets. Federal actions in recent years
have fostered freer competition in deposit and
mortgage markets, although artificial constraints
on the availability of mortgage credit have not
been fully eliminated.

Billions of dollars

D eposit R a te Ceilings

1971*

11973

*1975

C o m m e rc e D e p a rtm e n t d a ta o n th e c u rre n t-d o lla r v a lu e o f g ro s s
re s id e n tia l in v e s tm e n t e x p e n d itu re s , a t s e a s o n a lly a d ju s te d an n u a l
ra te s . T o ta l in c lu d e s m o b ile h o m e s , n o n h o u s e k e e p in g u n its , a n d
b r o k e r s ’ c o m m is s io n s , n o t s h o w n s e p a r a te ly . S h a re o f G N P b a s e d o n
c u rre n t-d o lla r v a lu e s f o r b o th to ta l re s id e n tia l a n d g ro s s n a tio n a l
p ro d u c t.

markets also have contributed to the resilience of
housing activity.

Ea s in g o f C o n s t r a in t s
o n C r e d it A v a il a b il it y

Regulations imposed by federal and state govern­
ments on mortgage lenders and instruments tend­



Perhaps the most important competitive innova­
tions have been the variable-ceiling deposits
made available to the depository institutions by
federal regulation: the six-month money market
certificates (MMCs), introduced in June 1978,
and the longer-term “ small saver” certificates
(SSCs), introduced in mid-1979. These federally
insured instruments generally have enabled sav­
ings and loan associations and mutual savings
banks to maintain deposit flows well above levels
that otherwise would have been sustained.
Nevertheless, the variable-ceiling accounts
have limited competitive effectiveness. Both
types of deposits have substantial penalties for
premature withdrawal, and the minimum denom­
ination ($10,000) on MMCs has been beyond the
means of many savers. Under current rules,
moreover, the nominal ceiling on SSCs is capped
at 12 percent and limits on interest compounding
help to hold eflfective yields on MMCs below
those available on Treasury securities with com­
parable maturity. And, under certain market
conditions, MMCs have had considerable diffi­
culty competing against yields available on
shares in money market mutual funds.

464

F e d e r a l R e s e r v e B u lle tin □ J u n e 1981

M ortgage In terest R a te Ceilings
Ceilings on mortgage rates have caused serious
problems for homebuyers in many areas since
the late 1960s. Because of limits on contract
interest rates, lenders have attempted to capture
a desired net mortgage yield through loan points,
if permitted by law, or by improving the quality
of mortgage credit through changes in nonrate
loan terms or lending standards, adjustments that
impose income or wealth constraints that many
would-be borrowers cannot overcome.
A number of states made upward adjustments
to their ceilings on conventional home mortgage
rates, or tied the ceilings to various market
yields, as mortgage rates climbed during 1978
and 1979. At the end of 1979, the federal govern­
ment preempted state ceilings on first mortgages
made by all major types of lenders for the
purchase of homes (states have until 1983 to
override the federal preemption if they wish).
Paradoxically, federal ceilings still apply to rates
that can be charged on mortgages insured by the
Federal Housing Administration (FHA) or guar­
anteed by the Veterans Administration (VA).
Discount points on FHA and VA home mort­
gages have risen to high levels on many occa­
sions since the end of 1979, and the admin­
istration has raised the ceilings nine times since
then.

Passthrough Securities
The development of markets for mortgage
passthrough securities of high quality and with
good liquidity has given home mortgage borrow­
ers broader access to the capital markets. The
predominant passthroughs are those guaranteed
by GNMA (table 1). These securities, which
represent shares in pools of FHA- and VAunderwritten loans, are issued by private mort­
gage originators (primarily mortgage companies),
and major securities dealers make primary and
secondary markets in the instruments. Funds
have been available through the GNMA market
for households that meet FHA or VA require­
ments and are willing to pay competitive market
yields and required insurance premiums. Ceil­
ings on FHA loan sizes and on the amount of
loan that VA can guarantee, however, have led



1. Federally underwritten mortgage passthrough
securities
A m o u n ts o u ts ta n d in g in b illio n s o f d o lla rs

G u a r a n te e d b y
E n d o f p e rio d

T o ta l
GNMA

FH LM C

Fm HA

T o ta l as
p erce n t o f
r e s id e n tia l
m o rtg a g e d e b t
o u ts ta n d in g

2.7
6.9
11.1
14.3
19.5
29.4

.4
3.1
5.5
7.9
11.8
18.3

'j
.4
.8
.8
1.6

2.3
3.7
5.2
5.6
6.9
9.5

.7
1.7
2.4
2.8
3.6
5.0

1976 ................ 44.1
1977 ................ 63.7
1978 ................ 80.8
1979 ................ 108.7
1980 ................ 130.1
1981: 0 1 ......... 134.2

30.6
44.9
54.4
76.4
93.9
97.2

2.7
6.6
11.9
15.2
16.9
17.1

10.8
12.2
14.5
17.1
19.3
19.9

6.7
8.3
9.1
10.8
11.9
12.1

1970
1971
1972
1973
1974
1975

................
................
................
................
................
................

S o u r c e s . G N M A , F H L M C , F m H A , F e d e r a l R e s e rv e .

to a concentration of activity in the lower-priced
segment of the housing market.
Passthrough securities issued and guaranteed
by the Farmers Home Administration (FmHA)
also have opened a channel between the bond
and mortgage markets. These securities are is­
sued against pools of residential mortgages ac­
quired by FmHA through its rural home loan
programs, and many of the loans bear interest
rates well below market levels. In recent years,
the securities have been sold exclusively to the
Federal Financing Bank, and the proceeds of
these sales have replenished a revolving fund
used by FmHA to acquire additional mortgages.
This program thus has been channeling substan­
tial amounts of funds raised by the Treasury into
FmHA’s subsidized loan programs.
The Federal Home Loan Mortgage Corpora­
tion (FHLMC) issues and guarantees pass­
through securities backed by pools of unsubsi­
dized conventional residential mortgages. The
mortgage pools consist of loans acquired by
FHLMC through various purchase programs,
primarily from savings and loan associations,
and most of the securities are marketed to pri­
vate investors through a syndicate of securities
dealers. FHLMC sets limits on the scope of its
passthrough programs, considering its own un­
derwriting capacity and bond market conditions,
and in recent periods the level of activity has
been relatively low.
Some mortgage passthrough securities have
been issued by private institutions against pools
of conventional residential mortgages without

Changing Patterns o f Housing Finance

the benefit of federal guarantees. Despite the
potential for this securities market, in terms of
the size of the conventional mortgage market,
fewer than 50 institutions have issued private
passthrough securities since the first offering in
1977, and the total volume has been less than $3
billion.

465

6. Monthly payments on home mortgages
H u n d r e d s o f d o llars

A D JU STM E N TS TO
R e c o r d In t e r e s t R a t e s

As the competitive environment has been
strengthened, the interest sensitivity of demand
for long-term mortgage credit has become a more
important determinant of the volume of funds
raised in mortgage markets. And rates on con­
struction loans apparently have had more impor­
tant effects on construction activity as artificial
constraints on the availability of funds in the
long-term mortgage market have been disman­
tled. Construction lenders ordinarily require
builders to arrange commitments for long-term
financing before granting construction credit,
and in previous periods the effects of construc­
tion loan rates on the volume of construction lend­
ing seemingly were swamped by shifts in the avail­
ability of commitments for long-term financing.
Changing interest rates may be expected to
affect significantly the quantity of permanent
home mortgage credit demanded because large,
long-term loans are involved and because home
purchases often are postponable. Rising nominal
interest rates can have a heavy impact on the
affordability of mortgage credit, even during in­
flation when “real” interest rates may be stable
or falling; interest rate adjustments associated
with upward revisions of price expectations can
increase monthly payments on standard levelpayment mortgage contracts substantially
whereas household income needed to carry the
payments may increase only gradually as expect­
ed inflation actually develops. As mortgage inter­
est rates have climbed, the ratio of monthly
payments on newly originated conventional
home mortgages to average disposable income
for all households—a rough measure of initial pay­
ment burden—has risen considerably (chart 6).
The high interest rates attained in recent years
on long-term home mortgages have encouraged
governmental units and private market partici­



A v e ra g e m o n th ly p a y m e n ts o n n e w ly o rig in a te d c o n v e n tio n a l h o m e
m o rtg ag es c a lc u la te d b y th e F e d e r a l R e s e r v e fro m d a ta re p o r te d b y
th e F e d e ra l H o m e L o a n B a n k B o a rd . A v e ra g e h o u s e h o ld in c o m e is
n a tio n a l d is p o s a b le p e rs o n a l in c o m e , a s r e p o r te d b y th e C o m m e rc e
D e p a rtm e n t, d iv id e d b y e s tim a te s o f n u m b e rs o f h o u s e h o ld s p ro v id e d
a n n u a lly b y C o m m e rc e a n d e x tr a p o la te d b y th e F e d e r a l R e s e rv e .

pants to devise ways to help prospective borrow­
ers enter the housing markets. Some of these
measures, however, have prompted counterac­
tions by the federal government or mortgage
holders.

G overnm ent P rogram s
FHA-insured, graduated-payment home mort­
gages (GPMs), introduced several years ago, are
a response of the federal government to the cash­
flow problems posed for moderate-income home
buyers by high rates of inflation and interest. The
GPM provides for lower payments in the early
years of the contract and higher payments in the
latter years; initial payments are less than ac­
crued mortgage interest and can be as much as a
fourth below those on level-payment contracts
with the same maturity and interest rate. Since
late 1980, however, GPMs have accounted for
less than a third of all FHA-insured home mort­
gages made, down significantly from the shares
registered during the two previous years. The
decline in the relative importance of GPMs has
occurred because higher interest rates, in combi­
nation with FHA limitations on the amount by

46 6

F e d e r a l R e s e r v e B u lle tin □ J u n e 1981

2. Tax-exempt revenue bonds for housing
A m o u n ts is s u e d in b illio n s o f d o lla rs

P e rio d

1975
1976....................
1977....................
1978....................
1979....................
1980....................
1981: Q l 2.........
1.
2.

S ingle-fam ily

T o ta l
h o u s in g
bonds

T o ta l

.9
2.1
3.8
5.8
10.5
12.5
3.7

.7
1.0
3.4
7.8
10.8
2.1

1

1

S ta te

"j
1.0
2.8
3.3
5.7
.8

E x c lu d in g v e te r a n s ’ h o u s in g g e n e ra l-o b lig a tio n b o n d s .
D a ta f o r th e first q u a r te r o f
a r e e x p r e s s e d a t a n n u a l r a te s .

1981

which the outstanding principal balance may rise
during the initial years of the loan, have caused
substantial increases in downpayment require­
ments on GPMs with given rates of payment
graduation.
State and local governments have taken steps
to help borrowers in their areas by channeling
funds from tax-exempt securities into the mort­
gage market. Four-fifths of the states have hous­
ing finance agencies that provide mortgage funds
at below-market interest rates, and roughly 250
local governments or municipal housing finance
agencies have issued single-family mortgage rev­
enue bonds since late 1978 when the first of these
securities was floated. In 1980, nearly $13 billion
of tax-exempt housing revenue bonds were is­
sued, accounting for more than a fourth of all
municipal bonds sold (table 2).

P rivate-S ector Initiatives
A number of mortgage investors and insurers
recently have liberalized their standards on the
relation of the monthly loan payment to the
borrower’s income, permitting more borrowers
to qualify for mortgage credit if they are willing
to pay market interest rates. As with GPMs, this
liberalization relies on the expectation that infla­
tion in home prices and borrower income will
ensure adequate loan quality. Some prominent
institutions, including FNMA, FHLMC, and
some large private mortgage insurance compa­
nies, have eased their guidelines, and the prac­
tice evidently has been widespread among pri­
vate lenders.
Sellers of both new and existing homes have
expanded their use of techniques designed to
make home purchases more affordable. An inno­



M u ltifam ily
L ocal

T o ta l

S ta te

L ocal

T o ta l a s p e r c e n t
o f all m u n ic ip a l
b o n d is s u e s

”6
4.5
5.1
1.3

.9
1.4
2.9
2.5
2.7
1.1
.7

.9
1.4
2.6
1.8
1.9
.9
.6

.3
.7
.8
.2
.1

3
6
8
12
24
26
11

S o u r c e . U .S . D e p a r tm e n t o f H o u s in g a n d U r b a n D e v e lo p m e n t.

vation, employed most often by merchant build­
ers to help sell new homes, is the so-called
“buydown” of mortgage interest rates. This de­
vice may be viewed as a builder-created GPM,
and it has been used by roughly half of the
builders who responded to a survey conducted
by the National Association of Home Builders in
April of this year. Builder buydowns commonly
involve the calculation of mortgage payments for
the first few years of the loan at a mortgage rate 1
to 3 percentage points below market levels.
Builders usually make direct payments to mort­
gage lenders, corresponding to the amounts by
which the early monthly payments of buyers are
reduced, and all or part of this amount may be
incorporated in the home price and the size of the
mortgage. This arrangement, which also counts
on inflation to maintain loan quality, provides
buyers with more favorable patterns of loan
repayment; permits lenders to make loans at
going market yields; and can allow builders to
control inventory accumulation without cutting
home prices, a critical factor particularly in an
environment of record high interest rates on
construction loans (see chart 7).
“ Creative” financing has become even more
widespread in the market for existing homes.
According to a survey conducted by the National
Association of Realtors in April, about half of all
resale transactions involved some sort of financ­
ing technique other than a new first-mortgage
loan from a financial institution. The most com­
mon techniques involve the transfer of outstand­
ing low-rate mortgages from home sellers to
home buyers, often in combination with seller
take-backs of second mortgages or through the
creation of “wraparound” mortgages, which en­
compass the outstanding first mortgage and the
amount of additional financing needed by the

Changing Patterns o f Housing Finance

7. Home stocks at builders
Thousands of units
4 50

M e rc h a n t-b u ild e r s to c k s o f u n s o ld sin g le -fam ily h o m e s a re s e a s o n ­
ally a d ju s te d e n d -o f-m o n th fig u re s r e p o rte d b y th e C e n s u s B u re a u .

buyer. Such arrangements are attractive to pro­
spective home buyers when the size of the out­
standing first mortgage is large and the interest
rate on this mortgage is low relative to current
market yields, as long as any additional funds
needed for the purchase can be raised at reason­
able interest rates and for a sufficiently long
term. If the various elements constitute a financ­
ing package with after-tax monthly payments
that are lower than those on a new first mort­
gage, a prospective home buyer may be willing to
pay the seller a premium to assume the outstand­
ing low-rate loan. The seller, in turn, ordinarily
will require a price premium, in some cases as
compensation for underwriting credit risks or for
acquiring a mortgage asset that may not meet his
portfolio preferences.

C ounteractions
In view of mounting costs to the Treasury, in
terms of forgone tax revenues, the federal gov­
ernment put stringent controls on the issuance of
tax-exempt, single-family housing bonds at the
end of 1980. The federal law sets limits on the
volume that may be issued during the 1981-83
period and forbids any issuance thereafter.
Moreover, issues will be permitted during the
three-year transition period only if certain crite­
ria are met, such as the income position and the
previous housing status of the borrower.
The increased incidence of loan assumptions



467

associated with creative financing in the market
for existing homes has caused the rate of turn­
over of outstanding home mortgages to slow at
traditional mortgage lending institutions, reduc­
ing supplies of loanable funds and holding down
earnings. Consequently, many lenders have at­
tempted to invoke due-on-sale clauses that are
incorporated in most outstanding conventional
mortgage contracts. This reaction has provoked
litigation on behalf of home sellers in a number of
states. A third of the states currently restrict the
enforcement of due-on-sale clauses, and cases
are pending in the courts in some other areas.
The Federal National Mortgage Association
(FNMA), which is the single largest holder of
residential mortgages, recently took steps to
prohibit assumptions of new fixed-rate conven­
tional home loans that it purchases. FNMA also
has developed incentive programs designed to
encourage borrowers to refinance outstanding
low-rate loans and to discourage assumptions of
older loans. Some private mortgage holders also
have taken such measures in an effort to get old
low-rate loans off their books.

ADJUSTMENTS TO
G r e a te r R a t e U n c e r t a in t y
A system of forward commitments among pri­
vate and public participants in the mortgage
markets has developed over the years, and the
relatively new forward and futures markets for
federally guaranteed mortgage passthrough se­
curities provide additional risk-management
mechanisms that facilitate the orderly operation
of mortgage markets. However, the degree of
rate volatility since late 1979 has prompted vari­
ous institutions to make additional adjustments
to their commitment and investment policies.

C om m itm ent P olicies
Mortgage originators typically have made com­
mitments to provide long-term credit well before
the funds are scheduled to be disbursed. These
commitments traditionally have specified a rate
of interest, and takedown has been at the option
of the borrower. During the past year or so,
however, many originators have become reluc­

468

F e d e r a l R e s e r v e B u lle tin □ J u n e 1981

tant to issue this type of option to prospective
borrowers. Adjustments generally have involved
the imposition of larger nonrefundable commit­
ment fees to discourage cancellations when mar­
ket rates fall, the shortening of periods over
which a stated interest rate on commitments for
conventional loans or a given number of points
on FHA- or VA-underwritten loans will be guar­
anteed, or the use of floating rates and discount
points tied to some market indicators.
Major purchasers of mortgage loans also have
adjusted their policies as interest rate variability
has increased, further encouraging the shift of
interest rate risks to borrowers. FNMA and
dealers in GNMA-guaranteed passthrough secur­
ities have become less willing to issue fixed-rate,
optional-delivery “ standby” commitments. This
type of option has become unavailable or more
expensive at GNMA dealers during the past year
because the ultimate issuers of the standbys
(private investors) have become reluctant to en­
ter into such arrangements and because the deal­
ers have been less willing to absorb credit risks
on these contracts. At FNMA, a twelve-month
fixed-rate standby purchase program has been
terminated, and fees charged for four-month

standby commitments issued through the bi­
weekly auction procedures have been raised
substantially.

Investm en t P olicies
Rate volatility has made it more difficult for
investors to predict future interest rates and thus
has encouraged them to move away from fixedrate long-term mortgages toward mortgage con­
tracts with equity participations or with interest
rates that vary during the life of the loan. This
tendency had been developing for some time as it
became clear that expectations of short-term rate
movements embodied in long-term mortgage
rates agreed to in earlier periods were too low.
Statutory or regulatory restrictions on prepay­
ment penalties that may be levied on borrowers
who wish to refinance outstanding fixed-rate
mortgages, and the legal constraints on enforce­
ment of due-on-sale clauses, have further dis­
couraged investors from acquiring traditional
mortgage contracts.
A series of regulatory changes have permitted
thrift institutions and commercial banks to offer a

3. Major characteristics of recent federal regulations governing adjustable-rate home mortgage lending
M a jo r c h a ra c te r is tic s

F e d e ra l sav in g s a n d lo a n s
a n d m u tu a l sav in g s b a n k s

N a tio n a l b a n k s

R e q u ire m e n t to o ffer fix e d -ra te m o rtg a g e
in s tru m e n t to b o rr o w e r

N one

N one

L im it to a m o u n t o f A R M s th a t m a y b e
held

N one

N one

In d e x e s g o v e rn in g m o rtg a g e ra te a d ju s t­
m e n ts

A n y in te re s t r a te in d e x th a t is re a d ily v erifi­
a b le b y th e b o r ro w e r an d n o t u n d e r th e
c o n tro l o f th e le n d e r, in c lu d in g n a tio n a l o r
reg io n al c o s t-o f-fu n d s in d e x e s fo r S & L s .

O n e o f th r e e n a tio n a l ra te in d e x e s - a lo n g -te rm
m o rtg a g e r a te , a T re a s u r y bill r a te , o r a th re e y e a r T r e a s u r y b o n d ra te .

L im it o n fre q u e n c y o f r a te a d ju s tm e n ts

N one

N o t m o re o fte n th a n e v e ry six m o n th s.

L im it o n size o f p e rio d ic ra te a d ju s tm e n ts

N one

p e rc e n ta g e p o in t f o r e a c h six -m o n th p e rio d
b e tw e e n ra te a d ju s tm e n ts , a n d n o sin g le ra te
a d ju s tm e n t m a y e x c e e d
p e r c e n ta g e p o in ts .

1

5

L im it o n size o f to ta l r a te a d ju s tm e n t o v e r
life o f m o rtg ag e

N one

N one

A llo w ab le m e th o d s o f a d ju s tm e n t to ra te
changes

A n y c o m b in a tio n o f c h a n g e s in m o n th ly p a y ­
m e n t, lo a n te rm , o r p rin c ip a l b a la n c e .

C h a n g e s in m o n th ly p a y m e n t o r ra te o f a m o r ­
tiz a tio n .

L im it o n a m o u n t o f n e g a tiv e a m o r tiz a ­
tio n

N o lim it, b u t m o n th ly p a y m e n ts m u s t b e
a d ju s te d p e rio d ic a lly to a m o rtiz e fu lly th e
lo a n o v e r th e re m a in in g te rm .

L im its a re s e t, a n d m o n th ly p a y m e n ts m u s t b e
a d ju s te d p e rio d ic a lly to a m o rtiz e fu lly th e
lo a n o v e r th e re m a in in g te rm .

A d v a n c e n o tic e o f ra te a d ju s tm e n ts

30 to 45 d a y s

30 to 45 d a y s p r io r to

P re p a y m e n t re s tric tio n s o r c h a rg e s

D is c lo s u re re q u ire m e n ts




b e fo re s c h e d u le d a d ju stm e n t.

sc h e d u le d a d ju s tm e n ts .

N one

P re p a y m e n t w ith o u t p e n a lty p e rm itte d a fte r
n o tific a tio n o f first s c h e d u le d r a te a d ju s tm e n t.

F u ll d is c lo s u re o f A R M c h a ra c te r is tic s n o
la te r th a n tim e o f lo a n a p p lic a tio n .

F u ll d is c lo su re o f A R M c h a ra c te r is tic s n o
la te r th a n tim e o f lo a n a p p lic a tio n .

Changing Patterns o f Housing Finance

variety of adjustable-rate mortgages (ARMs),
and the federal preemption of state mortgage rate
ceilings has removed an important practical im­
pediment to ARM expansion. In March 1981, a
new regulation was issued to govern convention­
al ARM lending by national banks, and shortly
thereafter revised regulations were approved for
federally chartered savings and loan associations
and federal mutual savings banks. The current
regulations for these types of federally chartered
institutions override any state laws or regulations
on the subject, and permit large interest rate
adjustments as well as a good deal of latitude for
negotiation of terms between borrowers and
lenders (table 3). The powers of state-chartered
depository institutions to offer ARMs vary wide­
ly, but only three states prohibit home mortgages
with adjustable rates.
Lenders have been inclined to make rate con­
cessions on ARMs to encourage borrowers to
accept the greater interest rate risks on these
contracts. Yields on mortgages providing for
limited rate adjustments every three to five
years, which had been the dominant form of
ARM immediately before the recent changes in
regulations, generally carried interest rates Vi to
1 percentage point below going rates on fixedrate loans, although spreads as wide as 2 percent­
age points were evident in some areas. Yield
relationships for the more flexible ARMs have
not yet been set by the market, but FHLMC and
FNMA are likely to help establish industry stan­
dards through development of purchase pro­
grams for specific types of ARMs.

C h a n g in g S t r u c t u r e
of M o r t g a g e S u p p l y
The structure of funds supplied to residential
mortgage markets, through acquisitions of mort­
gage loans or passthrough securities, has
changed markedly during the current housing
downswing—and in ways that differ in some
respects from the patterns of past cycles (chart
8). Mortgage acquisitions by the state and local
government sector have increased substantially,
and participation by private diversified inves­
tors, including individuals, has been relatively
strong. The market share of the nonbank thrift
institutions, on the other hand, has receded to an



469

unusually low level, and support provided by the
federal and related credit agencies has not been
so strong as in other recent downswings.

N onbank Thrift Institutions
Acquisitions of mortgage assets by thrift institu­
tions have fallen as deposit growth has weakened
and mortgage prepayments have slackened be­
cause of both declining sales of existing homes
and widespread assumptions of outstanding
mortgages (chart 9). A marked squeeze on earn­
ings also has occurred at these institutions, en­
couraging them to move unusually large amounts
of funds into short-term nonmortgage assets in
order to maximize short-run returns and mini­
mize interest rate risks over the longer term. The
federal tax code, of course, encourages thrift
institutions to maintain large proportions of their
assets in residential mortgage instruments and a
few other forms.
Earnings problems at the thrift institutions
have stemmed from the structure of their balance
sheets in combination with sharply rising market
interest rates. The maturity structure of thrift
liabilities has shortened considerably in recent
years, primarily because of the rapid growth of
MMCs. Thrift assets, on the other hand, have
remained concentrated in long-term, fixed-rate
forms, many of which were acquired when inter­
est rates were much lower; indeed, at the end of
1980, long-term mortgages bearing interest rates
below 10 percent accounted for as much as 70
percent of all mortgages held by thrift institu­
tions. Moreover, the institutions have not been
able to dispose economically of the seasoned
low-rate assets held in their portfolios because
sales during periods of high market interest rates
require them to book capital losses that are
chargeable against current operating income and
can cut into capital positions. Net sales of mort­
gage assets (including passthrough securities) by
the savings and loan industry have been small or
negative in recent years.

D iversified P rivate Investors
Markets for federally underwritten passthrough
securities offer the investment community mort-

47 0

F e d e r a l R e s e r v e B u lle tin □ J u n e 1981

8. N et change in residential mortgage assets by type o f holder
Investor share, percent
State and
local agencies
Diversified
private investors

Federal and
related agencies

Savings and
loans and
mutual savings banks

S h a re s o f n e t c h a n g e in to ta l re s id e n tia l m o rtg a g e d e b t o u ts ta n d in g ,
a s s h o w n in c h a rt . M o rtg a g e s in p o o ls b a c k in g is s u e s o f fe d e ra lly
g u a ra n te e d p a s s th ro u g h s e c u ritie s h a v e b e e n a llo c a te d to th e h o ld e rs

o f th e s e c u ritie s , b a s e d o n d a ta r e p o r te d b y th e F e d e r a l H o m e L o a n
B a n k B o a rd , th e N a tio n a l A s s o c ia tio n o f M u tu a l S a v in g s B a n k s , a n d
th e F a rm e rs H o m e A d m in is tra tio n .

gage-related instruments of high quality and li­
quidity that consistently have yielded more than
Treasury or agency securities with similar matu­
rities. These securities have appealed to a variety
of investors with diversified portfolios, and have

occupied a fairly steadily growing position in the
residential mortgage markets. By early 1980,
about three-fourths of the GNMA-guaranteed
passthrough securities outstanding were held by
private institutions other than the thrift institu­
tions, and diversified investors have been pur­
chasing large shares of the mortgage participa­
tion certificates issued and guaranteed by
FHLMC. Even so, the pension funds, which
have been the major investor target of the federal
passthrough programs, have as yet acquired only
moderate amounts of these types of securities.
The unusual and uncertain cash-flow patterns
(which depend upon prepayments of mortgages
in the pools) have discouraged many pension
funds from participating in the major pass­
through markets. A special type of FHLMC
passthrough security, with cash-flow features
similar to those of bonds and dubbed the guaran­
teed mortgage certificate, has proved attractive
to the pension funds.
The spread between yields on long-term home
mortgages and bonds widened in the final years
of the 1970s, reflecting strong demands for home
mortgage credit at a time when business de­
mands for long-term funds were moderate. This

4

9. Funds flows and acquisitions of
mortgage assets at savings and loans
Billions of dollars

A c q u is itio n s o f m o rtg a g e lo a n s a n d p a s s th ro u g h s e c u ritie s a re e q u a l
to m o rtg a g e o rig in a tio n s p lu s n e t p u r c h a s e s , a n d fu n d s flow s a re n e t
d e p o s it flow s p lu s r e p a y m e n ts (in c lu d in g p re p a y m e n ts ) fro m m o r t­
g ag e s h e ld . B a s e d o n d a ta re p o r te d b y th e F e d e ra l H o m e L o a n B a n k
B o a rd a n d s e a s o n a lly a d ju s te d b y th e F e d e r a l R e s e rv e .




Changing Patterns o f Housing Finance

development had a substantial positive effect on
mortgage acquisitions at both commercial banks
and life insurance companies. The yield spread
has narrowed somewhat during the past year,
reducing the relative attractiveness of long-term
home mortgage loans. Even so, mortgage acqui­
sitions at banks have been fairly strong in recent
periods, as these institutions have moved more
funds into high-yielding construction loans. But
mortgage activity has contracted sharply at the
life insurance companies, reflecting both relative
yield movements and a drain on investable funds
due to a rise in policy loans.

471

window on several occasions during the current
housing contraction, including the first five
months of this year; the cost of these funds has
been high, however, and the advances generally
have been used to meet outstanding mortgage
commitments at times of slackening flows of
deposits and mortgage repayments. Advances at
below-market interest rates were employed dur­
ing the 1974 downswing to encourage borrowing
for mortgage investment, but such a program has
not been put in place in the current contraction.

S tate and L o ca l G overnm ents
Federally R e la te d A gen cies
Federal programs of mortgage purchases can
help to temper cyclical declines in housing mar­
kets, particularly when the mortgages are made
available to borrowers at below-market interest
rates and are held within the federal sector until
market conditions improve. In the current down­
swing, the agencies have supported mortgage
markets less vigorously than in other recent
declines. FHLMC has adhered to a policy of
closely matching purchases of mortgages and
resales through issues of passthrough securities,
stressing its role in the development of second­
ary markets for conventional mortgages. More­
over, the administration has not resurrected the
so-called GNMA tandem plan for the purchase of
low-rate home mortgages that was prominent in
the previous housing downswing. Finally,
FNMA has been conservative in the issuance of
mortgage purchase commitments because its
earnings have eroded for the same reason that
profitability has declined at the thrift institutions:
a preponderance of long-term fixed-rate mort­
gage assets in combination with liabilities of
much shorter maturity.
Loans by the Federal Home Loan Banks to
members of the FHLB System (primarily savings
and loan associations) traditionally have been
made available to ease temporary liquidity prob­
lems associated with deposit shortfalls, and in
some housing contractions the use of such “ad­
vances” to expand mortgage lending also has
been encouraged. Savings and loan associations
have borrowed rather heavily at the advance



Seven-eighths of the nearly $13 billion in taxexempt housing bonds issued last year was used
to subsidize home mortgage borrowers, and the
balance was employed to provide low-rate fi­
nancing to owners of multifamily projects that
also received support under the rental subsidy
programs operated by HUD. The proceeds of
some housing bond issues have been used to
finance low-rate loans to private financial inter­
mediaries that originate and hold low-rate mort­
gages. But mortgage acquisitions by state and
local government agencies also have burgeoned.
In 1980, gross acquisitions by these agencies
amounted to nearly a tenth of all long-term
residential mortgages originated during the year.
Mortgage acquisitions by the agencies remained
large in the early months of this year, but the
volume inevitably will dwindle because of the
federal limits placed on bond issues at the end of
1980.
★

★

★

The housing finance system is bound to under­
go additional change in coming years because of
both public policy measures and private-sector
initiatives in an era of financial deregulation.
Ceilings on deposit rates are due to be phased out
under legislation now in effect, and the Congress
has authorized a demonstration program al­
lowing FHA-insured home mortgages to be writ­
ten at market rates of interest. The removal of
deposit-rate controls will further encourage thrift
institutions and banks to market the newly au­

47 2

F e d e r a l R e s e r v e B u lle tin □ J u n e 1981

thorized adjustable-rate loans unless interest rate
uncertainties diminish. Because lenders general­
ly are better able than borrowers to bear interest
rate risks, however, fixed-rate loans are likely to
remain an important factor in the market.
The additional relaxation of artificial con­
straints in mortgage markets might further re­
duce the sensitivity of housing activity to shifts
in general credit conditions. More widespread
use of ARMs also could change the response of
mortgage and housing activity to changes in
interest rates. To the extent that ARMs tend to
be priced like short-term market instruments,
their rates will fluctuate over a wider range than
those on fixed-rate loans, making it more difficult
for borrowers to meet initial monthly payments




when market rates are high. On the other hand,
ARMs might reduce incentives to postpone
mortgage borrowing in periods of high interest
rates because subsequent rate declines would
affect both new and outstanding mortgages.
Federal outlays in support of the housing mar­
kets may be limited in coming years, in view of
the national sentiment favoring balanced budgets
and larger flows of capital to the defense and
industrial sectors. The use of tax-exempt securi­
ties to subsidize mortgage interest rates also is in
disfavor at the federal level, and growth of
federal programs to underwrite credit risks on
mortgage loans and passthrough securities may
be constrained by the new federal credit bud­
get.
□

473

Financial Developments
of Bank Holding Companies in 1980
This article was prepared by Anthony G. Cornyn
and Thomas L. Zearley o f the Board's Division
of Banking Supervision and Regulation.
In 1980 bank holding companies were forced to
operate in a particularly difficult environment—
with unprecedented levels and volatility of inter­
est rates, a sharp but brief recession, and high
rates of unemployment and inflation. Yet, on
balance, bank holding companies came through
this period reasonably well. Earnings continued
to expand, although at a somewhat more moder­
ate pace than in recent years. Rates of profitabili­
ty remained satisfactory, although they also
edged moderately lower. And capital ratios,
which had been trending down for a decade or
so, gained some ground during the year. Some
evidence of deterioration in asset quality sur­
faced, particularly in consumer loan portfolios in
which net loan losses rose sharply over levels in
1979.
This article reviews major financial develop­
ments of bank holding companies during 1980
and is based on data from the bank holding
company financial supplement (form FR Y-9).
The sample consists of 409 bank holding compa­
nies that had more than $100 million in fully
consolidated assets at year-end 1980.1These 409
companies controlled aggregate deposits of
$985.6 billion or about 66.5 percent of the depos­
its held by U.S. commercial banking institutions.
This article presents data for the entire sample of
409 companies (universe) and for three size
classes or peer groups: 44 holding companies
with more than $5 billion in assets; 133 with $1
billion to $5 billion in assets; and 232 with $100
million to $1 billion in assets.

Ea r n in g s

and

P r o f it a b il it y

Earnings of bank holding companies continued
to expand in 1980, but at a measurably slower
pace than in the preceding two years. Aggregate
net income before securities transactions of the
409-company universe rose 9.8 percent last year
to $8.5 billion (table 1); growth had been 26.9
percent in 1978 and 20.0 percent in 1979.
Earnings in 1980 were favorably affected by
strong gains in both interest income and nonin­
terest income. However, these gains were par­
tially offset by a surge in interest expenses, a
significant rise in overhead, and a marked expan­
sion in loan-loss provisions.
While all three peer groups increased earnings
during 1980, the gains were not evenly distribut­
ed (table 2). The medium-size bank holding com­
panies posted a 14.6 percent increase in earn­
ings—nearly twice the average of the large ones
and more than three times that of the small
companies. A significant contraction in net inter1. Selected income and expense items,
1979 and 19801
A m o u n ts in m illio n s o f d o lla rs
Ite m

2

G ro ss in te r e s t in c o m e ...................
G ro ss in te r e s t e x p e n s e s ................
N e t in te re s t i n c o m e .......................
N o n in te re s t in c o m e .........................
N o n in te re s t e x p e n s e s ....................
L o a n -lo s s p r o v is io n s ......................
In c o m e b e fo re ta x e s .......................

T a x e q u iv a le n t a d j u s t m e n t .........
N e t in c o m e b e fo re
s e c u ritie s tr a n s a c t i o n s ..............
S e c u ritie s g ain s (lo s s e s ..............

)3

N e t in c o m e .........................................

N ote. Susan Rowe assisted in preparing the tables for this
article.
1. As of December 31, 1980, 3,057 registered bank holding
companies were in existence.



1

409

1979

1980

C hange
(p e rc e n t)

105,871
68,947
36,924
9,312
27,658
2,861
15,718
3,095
4,866
7,756
( 166)
7,590

134,338
94,404
39,934
11,925
32,016
3,425
16,418
3,108
4,790
8,520
( 337)
8,182

26.9
36.9
8.2
28.1
15.8
19.7
4.5
.4
( 1. 6)
9.8
7.8

. U n iv e rs e o f
b a n k h o ld in g c o m p a n ie s . D e ta ils m a y n o t a d d to
to ta ls b e c a u s e o f ro u n d in g .
. F u lly ta x a b le e q u iv a le n t.
. In c lu d e s e x tr a o r d in a r y ite m s .

2
3

474

F e d e r a l R e s e r v e B u lle tin □ J u n e 1981

2. N et operating income, 1977-801
P e rc e n ta g e c h a n g e
S ize c la ss

1977-78

1978-79

1979-80

U n i v e r s e ..............................................
m illion to
b illio n ..............
billio n to
b illio n ....................
b illio n o r m o r e ............................

26.9
29.2
25.6
27.3

20.0
19.8
21.9
19.4

9.8
4.7
14.6
8.6

$100
$1
$5
1.

$5

$1

B e fo re s e c u ritie s tr a n s a c tio n s a n d e x tr a o rd in a r y ite m s.

est margins was in large part responsible for the
relatively slow earnings growth of the large com­
panies. Several factors, including a sluggish 3.5
percent expansion in net loans and a compara­
tively sharp rise in loan-loss provisions, adverse­
ly affected the earnings of the small companies.
Gross interest revenue (on a fully taxable
equivalent basis) of the 409-company universe
advanced to $134.3 billion in 1980, up 26.9 per­
cent from $105.9 billion in 1979 (table 1). Never­
theless, despite this strong increase in revenue,
interest expense rose even faster, climbing from
$68.9 billion in 1979 to $94.4 billion in 1980, or
36.9 percent. As a result, net interest income for
the universe totaled $39.9 billion, an increase of
$3.0 billion, or 8.2 percent from the level a year
earlier.
The rise of 8.2 percent in net interest income in
1980 was the product of expanded asset volume
that more than overcame a modest decline in net
interest margins. Aggregate assets of the 409company universe increased 10.3 percent in
1980, while net loans rose 9.9 percent. This
growth, however, did not flow entirely through
3. Selected income statement items, 1978-801
P e rc e n t o f a v e ra g e a s s e ts
Ite m

2

G ro ss in te re s t in c o m e ...................
G ro ss in te r e s t e x p e n s e s ...............
N e t in te re s t m a r g in .........................
N o n in te re s t in c o m e .........................
N o n in te re s t e x p e n s e s ....................
L o a n -lo s s p r o v is io n s ......................
P re ta x in c o m e ...................................
T a x e s ....................................................
T a x e q u iv a le n t a d j u s t m e n t .........
N e t in c o m e b e fo re
se c u ritie s t r a n s a c tio n s ..............
S e c u ritie s g ain s (lo s s e s ..............

)3

N e t in c o m e .........................................

1

409

1978

1979

1980

7.66
4.49
3.18
.79
2.41
.27
1.29
.29
.36
.65
(. 01)
.63

9.31
6.06
3.25
.82
2.43
.25
1.38
.27
.43
.68
(. 01)
.67

10.55
7.42
3.14
.94
2.52
.27
1.29
.24
.38
.67
( . 03)
.64

. U n iv e rs e o f
b a n k h o ld in g c o m p a n ie s . D e ta ils m a y n o t a d d to
to ta ls b e c a u s e o f ro u n d in g .
. F u lly ta x a b le e q u iv a le n t.
. In c lu d e s e x tra o rd in a ry ite m s.

2
3




to net interest income because of the contraction
in margins. Measured in relation to average
assets, net interest margins dropped to 3.14
percent in 1980, down 11 basis points from the
previous year (table 3).
Especially noteworthy is that last year’s slip­
page in margins was confined mainly to bank
holding companies in the large size class (table
4). Margins of these companies plummeted 18
basis points in 1980, while those of the small and
medium-size companies rose 12 and 5 basis
points respectively. For the most part, the varia­
tions in the margin performance in 1980 can be
attributed to the lower cost of funds of the small
and medium-size companies. The large compa­
nies, which tend to rely more heavily on ratesensitive liabilities, saw funding costs climb 38.3
percent in 1980. In comparison, interest expense
rose an average of about 33 percent for both the
small and the medium-size companies.

4. N et interest margins, 1979 and 19801
P e rc e n t

S ize c la s s

1979

1980

C hange
(b a sis p o in ts)

U n iv e r s e ..............................................
m illio n to
b illio n ..............
b illio n to
b illio n ....................
b illio n o r m o r e ............................

3.25
4.35
4.03
2.87

3.14
4.47
4.08
2.69

-11
12
5
-18

$100
$1
$5

$5

$1

1

. T a x a b le e q u iv a le n t n e t in te r e s t in c o m e d iv id e d b y a v e ra g e
a s s e ts .

Excellent growth in trading account profits,
lease financing revenues, and other income
pushed noninterest income up 28.1 percent in
1980 to $11.9 billion for the universe. Last year’s
increase was considerably higher than the rate of
asset expansion, and so noninterest income rose
to 0.94 percent of average assets in 1980, from
0.82 percent in 1979.
All three peer groups of bank holding compa­
nies reported gains in noninterest income. How­
ever, the strongest gains were generally posted
by the large companies, many of which enjoyed
sizable increases in their foreign exchange reve­
nues and loan fees.
On the other side of the ledger, noninterest
expenses (excluding loan-loss provisions) totaled
$32.0 billion in 1980, up 15.8 percent from $27.7
billion in 1979. This rise in overhead, which

Financial D evelopm ents o f Bank Holding Companies in 1980

largely reflects inflationary forces in the econo­
my, measurably outpaced asset expansion. As a
result, noninterest expenses as a percent of aver­
age assets moved from 2.43 percent in 1979 to
2.52 percent in 1980.
All three peer groups experienced strong
growth in overhead during 1980. While year-toyear increases by bank holding companies in the
large size class averaged 16.8 percent, those of
the small and medium size class averaged 14.3
percent and 13.7 percent respectively.
Reflecting uncertainty about credit quality,
provisions for loan losses for the universe
jumped 19.7 percent to $3.4 billion in 1980, up
from $2.9 billion in 1979. In proportion to aver­
age assets, loan-loss provisions rose from 0.25
percent in 1979 to 0.27 percent in 1980. The
increase in provisions was prompted also by a
sharp rise in net charge-offs. For the universe,
net loan charge-offs advanced 39.3 percent in
1980 to $2.7 billion, up from $1.9 billion in the
previous year. Sizable write-downs of several
large corporate credits and a dramatic rise in
consumer loan defaults contributed to the in­
crease in net charge-offs. Problems in the con­
sumer credit area were due in part to higher
unemployment and heavier debt service burdens
and in part to the recently liberalized personal
bankruptcy laws.
Sharp increases in loan-loss provisions were
largely confined to the small and large bank
holding companies in the universe. While loanloss provisions rose an average of only 12.1
percent in 1980 for companies ranging in size
from $1 billion to $5 billion, they increased 27.4
percent for those organizations with assets from
$100 million to $1 billion. For those with assets in
excess of $5 billion, provisions grew 21.7 percent
in 1980.
On a fully taxable equivalent basis, before-tax
income for the universe totaled $16.4 billion in
1980, up 4.5 percent from $15.7 billion the previ­
ous year. Reducing this figure by income taxes
and the tax-equivalent adjustment—to reverse
the earlier grossing up of tax benefits related to
tax-exempt revenues—resulted in net income
before securities transactions of $8.5 billion in
1980, which was 9.8 percent higher than the $7.8
billion in 1979. After deducting securities losses
and extraordinary items of $337 million in 1980
(compared with $166 million in 1979), net income



475

5. Net return on average assets, 1978-801
P e rc e n t
S ize c la ss

1978

1979

1980

U n iv e r s e ...............................................

.65
.79
.75
.59

.68
.86
.83
.61

.67
.83
.86
.59

$100 m illion to $1 b illio n ...............
$1 b illio n to $5 b illio n ......................
$5 b illio n o r m o r e .............................
1

. N e t in c o m e b e fo re s e c u ritie s tr a n s a c tio n s a n d e x tr a o r d in a r y
item s d iv id e d b y a v e ra g e a s s e ts .

equaled $8.2 billion, up 7.8 percent from $7.6
billion in 1979.
Despite the moderation in earnings growth,
profitability remained relatively stable. Between
1979 and 1980, the return on average assets for
the universe decreased just 1 basis point, from
0.68 percent to 0.67 percent. Return on equity
also declined slightly, dropping from 14.7 per­
cent in 1979 to 14.4 percent in 1980.
Slippage in profitability was generally concen­
trated among bank holding companies in the
small and large size classes (tables 5 and 6).
Indeed, while these two classes experienced
declines in return both on assets and on equity,
the medium size class posted gains. Of the three
peer groups, the medium-size and small compa­
nies continued to earn substantially higher re­
turns on assets in 1980. However, because they
are more highly leveraged, the large banking
organizations produced higher returns on equity.
6. Net return on average equity, 1978-801
P e rc e n t
S ize c la s s

1978

1979

1980

$100 m illion to $1 b illio n ...............
$1 b illio n to $5 b illio n ......................
$5 b illion o r m o r e .............................

13.6
12.9
12.8
13.9

14.7
13.9
14.0
14.9

14.4
13.1
14.4
14.5

1

. N e t in c o m e b e fo re s e c u ritie s tr a n s a c tio n s a n d e x tr a o r d in a r y
item s d iv id ed b y a v e ra g e e q u ity .

B a l a n c e -S h e e t C h a n g e s
After several years of strong growth, the rate of
asset expansion of the 409-company universe
subsided somewhat in 1980. This slowing reflect­
ed the impact of the Federal Reserve’s credit
restraint program, the slowdown in economic
activity, and the tightening of credit markets, all
of which acted to dampen loan demand. Aggre­
gate consolidated assets of the universe expand­

4 76

F e d e r a l R e s e r v e B u lle tin □ J u n e 1981

ed 10.3 percent in 1980, compared with growth
rates of 13.8 percent in each of the two preceding
years. Among the three size classes, the total
assets of the small companies increased 8.9 per­
cent during the year, slightly below the growth
rates of the companies in the larger-size groups.
Turbulent money and credit conditions charac­
terized by unprecedented interest rate volatility
in 1980 resulted in changes in the asset and
liability composition of bank holding company
balance sheets (table 7). In general, companies
continued to realign their balance sheets in the
direction of assets and liabilities with shorter
maturities and greater interest-rate sensitivity.
On the asset side, holdings of money market
instruments and investment securities increased
as a percentage of total assets, while non-interest-bearing cash balances and net loans outstand­
ing were pared back in relation to total assets. On
the liability side, dependence on deposits as a
source of funds decreased, while costlier nonde­
posit liabilities, including federal funds pur­
chased, commercial paper, and borrowings with
an original maturity in excess of one year, in­
creased relative to total footings.
One change in asset composition over the year

7.

was the decline in non-interest-bearing cash bal­
ances as a percentage of total assets. The oppor­
tunity cost of maintaining these balances in­
creased as interest rates rose and, consequently,
banking institutions moved to curb their growth.
At year-end 1980, non-interest-bearing cash bal­
ances of the 409-company universe amounted to
10.7 percent of aggregate assets, down from 11.7
percent as of December 31, 1979, and 12.5 per­
cent a year earlier.
The percentage of assets allocated to money
market instruments reached 13.2 percent by
year-end 1980, up from 12.8 percent at the end of
1979. (Money market instruments were defined
to include interest-bearing cash balances with
other depository institutions, trading account
securities, federal funds sold, and securities pur­
chased under agreements to resell.) As shown in
table 7, the large bank holding companies contin­
ued to hold a significantly greater share of their
assets in money market instruments than the
small companies. For example, companies in the
large size class held an average of 14.8 percent of
their assets in money market instruments at yearend 1980, compared with 8.2 percent for those in
the small size class.

Selected balance-sheet items, year-end 1979 and 1980
P e rc e n t o f to ta l a s s e ts
S ize c la s s

$5 billio n

Ite m

C a s h (ex clu d in g in te re s t-b e a rin g d e p o s it s ) ....................
M o n e y m a rk e t in v e s tm e n ts .................................................
In v e s tm e n t s e c u r i tie s ...............................................................
L o a n s a n d le a s e s , n e t .............................................................
P re m ise s an d e q u ip m e n t.........................................................
O th e r re a l e s t a t e ........................................................................
O th e r a s s e t s .................................................................................
T o ta l a s s e t s .........................................................................

1

D e m a n d d e p o s its ........................................................................
T im e d e p o s its in d e n o m in a tio n s o f $
o r m o re .
O th e r tim e d e p o s i t s ..................................................................
S av in g s d e p o s i t s ........................................................................
F o re ig n d e p o s i t s ........................................................................
T o ta l d e p o s its .....................................................................

100,000

2

S h o rt-te rm b o rro w in g s ..........................................................
L o n g -te rm b o r r o w in g s ............................................................
O th e r lia b ilitie s ...........................................................................
S to c k h o ld e rs ’ e q u ity ...............................................................
T o ta l liab ilities a n d s to c k h o ld e rs ’ e q u i t y ..............

3

1




$100 m illio n $1 b illio n

U n iv e rs e

1979

1980

1979

1980

1979

1980

1979

1980

11.7
14.9
9.3
56.6
1.0
.1
6.4
100.0
20.2
11.3
5.6
6.2
30.1
73.4
13.5
2.1
7.0
4.0
100.0

10.6
14.8
9.3
57.4
1.0
.1
6.8
100.0
18.3
13.2
6.3
5.5
28.8
72.1
14.4
2.2
7.2
4.1
100.0

12.2
8.3
19.3
55.4
1.9
.2
2.7
100.0
30.0
13.0
16.0
15.1
3.3
77.4
12.0
2.0
2.7
5.9
100.0

11.4
9.9
20.1
53.2
1.9
.2
3.3
100.0
27.9
13.4
18.3
13.9
3.0
76.5
12.6
1.9
2.9
6.0
100.0

10.4
6.1
23.3
55.9
2.2
.2
1.9
100.0
29.8
12.6
21.3
19.2
.1
83.0
7.2
1.8
1.6
6.4
100.0

9.1
8.2
25.0
53.2
2.2
.2
2.1
100.0
27.4
13.8
23.7
17.2
.1
82.2
8.0
1.7
1.5
6.5
100.0

11.7
12.8
12.5
56.3
1.3
.2
5.2
100.0
23.1
11.8
9.0
9.1
21.9
74.9
12.7
2.1
5.6
4.6
100.0

10.7
13.2
12.8
56.2
1.3
.1
5.6
100.0
21.1
13.3
10.3
8.2
20.9
73.8
13.6
2.1
5.8
4.7
100.0

. In c lu d e s in te re s t-b e a rin g c a s h b a la n c e s w ith o th e r d e p o s ito ry
in s titu tio n s , tra d in g a c c o u n t s e c u ritie s , a n d fe d e ra l fu n d s so ld a n d
s e c u ritie s p u r c h a s e d u n d e r a g re e m e n ts to re se ll.
. In c lu d e s c o m m e rc ia l p a p e r, fe d e ra l fu n d s p u rc h a s e d , s e c u ritie s

2

$1 b illio n —
$5 billio n

o r m o re

so ld u n d e r a g re e m e n ts to r e p u r c h a s e , a n d o th e r b o rro w in g s w ith an
o rig in al m a tu rity o f o n e y e a r o r le ss.
. In c lu d e s m in o rity in te r e s t in th e e q u ity a c c o u n ts o f c o n s o lid a te d
s u b sid ia rie s .

3

Financial Developm ents o f Bank Holding Companies in 1980

loans outstanding declined $521 million or 0.47
percent to $112.1 billion. By comparison, com­
mercial and industrial loans, loans to financial
institutions, and real estate loans grew at rates in
excess of 10 percent over the same period. Loans
made at foreign offices and at Edge and Agree­
ment subsidiaries rose 15.1 percent and lease
financing receivables were especially strong,
climbing 21.8 percent over the period. The com­
position of the loan portfolios of the three size
classes and the universe is shown in table 8.
Among the three groups of bank holding com­
panies, the growth of loan and lease volume
varied significantly. The large companies report­
ed a 12.1 percent increase in outstandings, nearly
twice the 6.2 percent increase of the medium-size
companies, and substantially above the 3.5 per­
cent increase of the small companies.
On the liability side, deposit growth was gener­
ally sluggish. The growth of demand and con­
sumer savings deposits slowed, while deposit
accounts offering market-related yields, primari­
ly the 6-month “ money market certificates” and
the 2!/ 2-year “ small-saver certificates,” in­
creased sharply during the year. Overall, the
total deposits held by the 409-company universe
increased only 8.7 percent in 1980, and by yearend the ratio of total deposits to total assets had
fallen to 73.8 percent, down from 74.9 percent at
the end of 1979, and 76.8 percent a year earlier.
With the slowing in deposit growth, short-term
borrowings played a larger role as a source of
funds in 1980 than in prior years. The ratio of
short-term funds to total assets rose from 12.7
percent at year-end 1979 to 13.6 percent by the
end of 1980. As shown in table 7, dependence on

In contrast to the trend of recent years, invest­
ment portfolios increased relative to assets in
1980. The increase was due partly to sluggish
loan demand. For the 409-company universe, the
ratio of investment securities to aggregate assets
rose from 12.5 percent at the end of 1979 to 12.8
at the end of 1980. Most of the increase was in
the form of U.S. Treasury securities and obliga­
tions of other U.S. government agencies and
corporations. Holdings of other bonds, notes,
and debentures also rose slightly in relation to
assets, but obligations of states and political
subdivisions declined slightly from 5.9 percent of
assets at the end of 1979 to 5.8 percent by the end
of 1980. The proportion of assets held in the form
of investment securities by companies in the
three size classes varied markedly. The smaller
companies held an average of 25.0 percent of
their assets in investment securities compared
with only 9.3 percent for large companies.
Reflecting recessionary conditions and the im­
pact of the credit restraint program, the rate of
loan growth in 1980 was substantially below that
of recent years. The 409-company universe re­
ported net loans and leases outstanding of $750.5
billion at year-end, an increase of only 10.2
percent from the prior year-end total of $681.1
billion. This growth in volume was slightly below
the rate of asset expansion, and so the ratio of
net loans and leases edged slightly lower from
56.3 percent at year-end 1979 to 56.2 percent by
the end of 1980.
The slowdown in the pace of lending was in
large part attributable to a pronounced weaken­
ing in the demand for consumer credit. Between
year-end 1979 and year-end 1980, consumer
8.

A ll

Composition of loan portfolios, year-end 1979 and 1980
P e rc e n t o f g ro s s lo a n s a n d le a s e s
S ize c la ss
Ite m

L o a n s m a d e a t d o m e stic offices
R eal e s ta te l o a n s ...........................................................................
L o a n s to fin a n cial in s titu tio n s .................................................
C o m m e rc ia l a n d in d u s tria l l o a n s ...........................................
C o n s u m e r l o a n s .............................................................................
A ll o th e r lo a n s ................................................................................
L o a n s m a d e a t fo re ig n offices a n d at
E d g e A c t a n d A g re e m e n t s u b s i d ia r i e s .....................
L e a s e fin a n cin g re c e iv a b le s ..........................................................




$5 b illio n
o r m o re

$1 b illio n —
$5 b illio n

$100 m illio n $1 b illio n

U n iv e rs e

1979

1980

1979

1980

1979

1980

1979

1980

15.8
6.4
26.6
11.8
5.2
31.8
2.4
100.0

16.1
6.3
26.8
10.7
4.7
32.8
2.6
100.0

30.9
4.0
30.4
26.0
4.3
3.0
1.4
100.0

31.3
4.2
32.0
23.8
3.9
3.1
1.6
100.0

36.9
1.6
28.8
26.8
4.8
.1
1.0
100.0

37.2
1.7
29.8
25.2
4.9
.1
1.1
100.0

20.7
5.5
27.6
16.0
4.9
23.2
2.1
100.0

20.8
5.5
28.1
14.5
4.6
24.2
2.3
100.0

478

F e d e r a l R e s e r v e B u lle tin □ J u n e 1981

short-term borrowed funds tends to be related to
asset size. On average, companies in the large
size class support 14.4 percent of their assets
with short-term borrowings, compared with the
12.6 percent average of the medium size class
and 8.0 percent for the small size class.
The total volume of medium- and long-term
borrowings of the 409 bank holding companies at
year-end 1980 was $28.5 billion, up $3.6 billion,
or 14.5 percent, from the end of the previous
year. The volume of medium- and long-term debt
outstanding at the 409 companies amounted to
2.1 percent of assets as of year-end 1980, un­
changed from that of a year earlier. Although not
shown in the table, the volume of intermediateterm funding increased significantly during the
year as the forbidding interest rate levels in early
and late 1980 discouraged longer-term funding.

the universe increased 11.9 percent in 1980,
outpacing the 10.3 percent increase in total as­
sets.
Although earnings retention remained the pre­
dominant source of equity growth, several offer­
ings of preferred and common stock were made
during the year. Companies in the universe
raised in excess of $340 million in preferred stock
and $160 million in common stock in 1980. With
stocks selling at depressed multiples of price to
earnings and price to book value throughout
1980, most banking institutions continued to
view common stock financing as unattractive.
The attractiveness of preferred stock financing
also diminished toward the close of the year as
the yields demanded by the investors on pre­
ferred stock climbed steadily in the fourth quar­
ter.

C a pita l

L o a n C h a r g e -O ffs

Some progress was made in strengthening capital
during 1980. The composite ratio of equity to
total assets of the 409-company universe was
4.69 percent at year-end 1980, up from 4.63
percent at the end of the previous year. Similar­
ly, the ratio of equity to risk assets (total assets
less cash and U.S. government securities) in­
creased from 6.30 percent to 6.37 percent over
the 12 months ending December 31, 1980. The
improvement in capital ratios was shared by each
of the three size classes (table 9).
The increase in capital ratios was the result of
both a modest increase in the rate of equity
growth over that experienced in 1979 and a more
pronounced slowdown in the rate of asset
growth. On an aggregate basis, the total equity of

Net loan charge-offs of the 409-company uni­
verse rose 39.3 percent in 1980 to $2.7 billion,
compared with $1.9 billion in 1979. As noted
earlier, this surge in loan losses reflected sizable
write-downs of several large corporate credits
and a sharp increase in consumer loan defaults.
The composite ratio of net loan losses to average
loans oustanding, which had been trending down
since 1975, moved up to 0.38 percent in 1980
from 0.31 percent in 1979 (table 10). Among the
three peer groups, the large companies reported
the lowest level of net charge-offs to average
loans for the year, 0.36 percent, while the small
and medium-size companies reported loss ratios
of 0.45 percent and 0.43 percent respectively.
Aggregate net charge-offs for 1980 amounted to

9. Selected capital ratios, year-end 1978-80
P e rc e n t
E q u ity to a s s e ts
S ize c la s s
U n iv e r s e ................................
m illion to
b illio n .
billion to
b illio n .......
b illio n o r m o r e ..............

$100
$1
$5

$5

$1

1




E q u ity to ris k a s s e ts

2

1978

1979

1980

1978

1979

1980

4.73
6.27
5.92
4.16

4.63
6.42
5.95
4.02

4.69
6.51
6.02
4.08

6.49
8.19
7.92
5.81

6.30
8.32
7.93
5.57

6.37
8.63
8.07
5.58

. T o ta l s to c k h o ld e rs ’ e q u ity p lu s m in o rity in te r e s t in c o n s o lid a te d
su b sid ia rie s d iv id e d b y to ta l a s s e ts .
. T o ta l s to c k h o ld e r s ’ e q u ity p lu s m in o rity in te re s t in c o n s o lid a te d

2

1

s u b sid ia rie s d iv id e d b y to ta l a s s e ts le ss c a s h a n d d u e fro m d e p o s ito ry
in s titu tio n s, U .S . T re a s u r y s e c u r itie s , a n d o b lig a tio n s o f U .S . g o v e rn m e n t a g e n c ie s a n d c o rp o ra tio n s .

Financial D evelopm ents o f Bank Holding Companies in 1980

479

possible losses has remained at 1.0 percent of
gross loans over the past several years.

10. Net loan losses to average loans outstanding,
1978-80
P e rc e n t
S ize c la ss

1978

1979

1980

U n iv e r s e ..............................................

.35
.38
.40
.33

.31
.34
.38
.28

.38
.45
.43
.36

$100 m illion to $1 b illio n ..............
$1 b illion to $5 b illio n ....................
$5 billion o r m o r e ............................

3.9 percent of total equity plus reserves for loan
losses, compared with 3.1 percent in 1979.
At year-end 1980, the allowance for possible
losses of the 409-company universe stood at $7.6
billion or 1.0 percent of average gross loans
outstanding. This allowance or “reserve” for




C o n c l u s io n
Against the backdrop of considerable turbulence
in the money and credit markets, the perform­
ance of the nation’s largest bank holding compa­
nies in 1980 was generally satisfactory. Earnings
continued to advance, profitability remained in­
tact, and capital ratios gained ground. The diffi­
cult economic environment, however, resulted in
some deterioration in asset quality as evidenced
by a sharp rise in loan charge-offs.
□

480

Financial Performance
of Small Banks, 1977-80
Roger T. Cole o f the Division o f Banking Super­
vision and Regulation prepared this article.1
How well have small banks coped with signifi­
cant change and some adversity in the period
from 1977 through 1980? Among the changes
faced by small banks were deposit deregulation,
high and volatile interest rates, increasing com­
petition from other banks and from thrift and
nondepository institutions, and the possibility of
deteriorating asset quality because of sluggish
economic conditions and new bankruptcy laws.

P r o f il e

of

Sm a l l Ba n k s

This study assesses the recent financial perform­
ance of small banks, which are defined as com­
mercial banks with total assets of less than $100
million.2 These institutions are an important part
of the commercial banking system, especially in
certain geographic regions.
At year-end 1980, the 12,735 institutions de­
fined as small banks had total assets of $356.2
billion, or 19 percent of the total assets held by
all insured commercial banks. Small banks re­
ported net income of $4 billion in 1980, or 29
percent of the earnings of the commercial bank­
ing system.
Almost 63 percent of small banks are located
outside the standard metropolitan statistical ar­
eas (SMSAs) and hold assets of $199.2 billion, or
56 percent of total small-bank assets. Eighty-two
percent of all small banks are concentrated in six
1. Barbara Opper and Nancy Pittman developed the data
base, and Susan Rowe and Mary McLaughlin provided
research assistance.
2. See footnote 1 to table 1 for the exact definition of small
banks used to develop the financial data base. The profile
data include new banks. The financial data base excludes new
banks because the influence of new-bank formations is not
considered to be part of the trends for the financial condition
of the established industry.



Federal Reserve Districts. The Chicago District
(19 percent) and the Kansas City District (17
percent) have the greatest concentrations, with
the Atlanta, St. Louis, Minneapolis, and Dallas
Districts accounting for the remainder. Illinois,
Minnesota, and Texas are home states for about
one-fourth o f the banks.

PROFITABILITY

The aggregate net income of small banks in­
creased each year during the 1977-80 period,
from $2.85 billion in 1977 to $4.01 billion in 1980.
This increase in net income consistently out­
paced the growth of assets at small banks. As a
consequence, return on assets rose steadily from
0.98 percent in 1977 to 1.19 percent in 1980 (table
1), an improvement substantially better than the
increase for larger banks—from 0.63 to 0.70
percent over the same period.
Underlying the improved profitability of small
banks was the increase in gross interest earned
on assets. High average interest rates provided
an opportunity to increase yields on interestearning assets. Small banks were able to take
advantage of this opportunity because of their
relatively large holdings of assets with moderate­
ly short-term maturities. As a result, gross inter­
est earned on their assets increased from 7.16
percent in 1977 to 9.68 percent in 1980.
Higher funding costs partially offset the in­
creased interest revenue. One reason for the rise
in funding costs is that banking customers are
becoming more rate conscious and, consequent­
ly, are shifting funds from demand deposits and
other sources substantially below market rates to
instruments paying closer to market rates. Sec­
ond, market rates have moved upward. Largely
because o f such factors, interest expense as a
percent of assets increased from 3.43 percent in
1977 to 5.37 percent in 1980.

Financial Performance o f Small Banks, 1977-80

1.

Income and expense items as a percent of
average total assets, insured small commercial
banks, 1977-801

1977 1978

Ite m

1979

1980

G ro ss in te r e s t e a r n e d .......................
G ro ss in te r e s t e x p e n s e .....................
N e t in te r e s t m a r g i n .......................
N o n in te r e s t r e v e n u e ..........................
L o a n -lo s s p r o v is io n ............................
O th e r n o n in te r e s t e x p e n s e ..............
I n c o m e b e fo re t a x ..........................
T a x .................................................
N e t o p e ra tin g i n c o m e ...................
O th e r (n e t o f ta x e s ................
N e t in c o m e ........................................

7.16 7.61 8.46 9.68
3.43 3.65 4.27 5.37
3.74 3.96 4.19 4.32
.51
.53 .59 .63
.24 .26
.22
.25
2.85 2.91 3.01 3.11
1.18 1.34 1.52 1.57
.22
.29 .34 .36
.95 1.05 1.18 1.21
.03 -.01 -.03 -.02
.98 1.04 1.15 1.19

M em o
T a x a b le e q u iv a le n t
in te re s t m a rg in ..............................
A v e ra g e a s s e ts
(b illio n s o f d o lla rs )..........................

4.28 4.50 4.73 4.89
291.4 308.7 :321.4 337.8

2

)3

4

1

. S m all b a n k s in c lu d e all c o m m e rc ia l b a n k s lo c a te d in th e U n ite d
S ta te s th a t a re in s u re d b y th e F e d e ra l D e p o s it In s u ra n c e C o rp o ra tio n
(F D IC ) a n d th a t h a v e to ta l a s s e ts o f le ss th a n
m illion a t y e a r-e n d
a n d e x c lu d e n e w b a n k s (d efin ed a s b a n k s fo rm e d d u rin g e a c h y e a r).
A v e ra g e a s s e ts a re fully c o n s o lid a te d a n d n e t o f lo a n -lo ss r e s e r v e s ;
a v e ra g e s a re b a s e d o n a m o u n ts o u ts ta n d in g a t th e b eg in n in g a n d en d
o f e a c h y e a r. R a tio s a re c a lc u la te d a s th e ra tio o f a g g re g a te d a ta .
. In c lu d e s all ta x liab ilities o r c re d its e s tim a te d to b e d u e o n
in c o m e b e fo re ta x .
. In c lu d e s s e c u ritie s a n d e x tra o rd in a ry g ain s o r lo s s e s ( - ) a fte r
ta x e s .
. T h e ta x a b le e q u iv a le n t a d ju s tm e n t is a p p ro x im a te d b y in c re a s in g
in c o m e fro m s ta te a n d lo c a l o b lig a tio n s b y (
tim e s th e
in te r e s t e a rn e d o n s ta te a n d lo c a l o b lig a tio n s. F o r
and
, is
a s s u m e d to b e . ; a n d f o r
and
, it is a s s u m e d to b e . .
N o t e . T h e d a ta in th is ta b le , a s w ell a s in ta b le s a n d , a re sim ilar
to in fo rm a tio n f o r all b a n k s in B a r b a ra N e g ri O p p e r, “ P ro fita b ility o f
In s u re d C o m m e rc ia l B a n k s ,
,” F e d e r a l R e se rv e B u ll e ti n ,
v ol.
(S e p te m b e r
), p p .
. I n d u s try d a ta fo r
w ill
a p p e a r in a fo rth c o m in g B u l l e t i n .

$100

2

3

4

0 48

66

1979

1980

1/(1 t)) - 1
1977 1978 t
1980
0 46
4 5

1979
691 706

1980

The net interest income data (table 1) reflect
the net effect of increasing interest revenue and
expenses. Because the increase in interest
earned has outpaced the increase in interest
expense, net interest income as a percent of
assets (net interest margin) has steadily im­
proved. From 1977 through 1980, the net interest
margin increased from 3.74 to 4.32 percent.
Although small banks have benefited recently
from improved net interest margins, differences
in the growth rates of gross interest earned and
gross interest expenses provide a warning for the
future. In particular, during the four-year period
from 1977 through 1980, gross interest earned
grew at a compound rate of 10.6 percent, where­
as gross interest expense grew on a much smaller
base at a substantially faster rate of 16.1 percent.
For the near term, the smaller growth in interest
earned on a much larger dollar base is likely to
continue to absorb the more rapid increase in
interest expense on a smaller dollar base.



481

In addition to the improved interest margins,
small banks have also experienced steady growth
in noninterest revenues such as service charges
on deposit accounts. Apparently, many small
banks have taken advantage of various opportu­
nities to offer more services or to raise the
service charges for existing services. As a result,
over the four-year period, noninterest revenue as
a percent of assets increased 12 basis points to
0.63 percent (table 1).
Fairly steady and moderate loan-loss provi­
sions also have contributed to solid earnings
performance. The loan-loss provision as a per­
cent of assets ranged from 0.22 percent in 1977 to
0.26 percent in 1980. This range was consistent
with the satisfactory asset quality experienced
during 1977-79. As discussed later, the higher
loan-loss provision in 1980 indicates some deteri­
oration in asset quality that could have an ad­
verse impact on earnings in the near term.
Other factors adversely affecting earnings in­
clude higher noninterest expenses and tax provi­
sions. Noninterest expenses increased from 2.85
percent to 3.11 percent of assets between 1977
and 1980. Contributing to this rise were higher
salaries and employee benefits, which were 51.8
percent of 1980 noninterest expense and grew
more rapidly than assets from 1977 to 1980.3
Over the same period, the increase in taxable
income was largely responsible for an increase of
14 basis points in tax expense to 0.36 percent of
assets. In combination, the rise in these two
expense categories reduced the 61-basis-point
improvement in the other components of return
on assets by two-thirds.
The steady growth in return on assets to 1.19
percent in 1980 has permitted small banks to
reduce leverage while improving return on equi­
ty. The interrelation among these three ratios is
presented as an equation in table 2. Over the
four-year period, leverage, measured as average
total assets to average shareholders’ equity, de­
clined from 12.67 to 12.01. Although each dollar
of equity supported fewer assets, the greater
return on assets more than offset the effect of
reduced leverage. Therefore, return on equity
increased from 12.43 percent in 1977 to 14.27
percent in 1980.
3. Employee compensation grew at an 8.5 percent com­
pound rate from 1977 to 1980, whereas average assets grew at
a 5.0 percent compound rate.

482

2.

F e d e r a l R e s e r v e B u lle tin □ J u n e 1981

Earnings, leverage, and profitability ratios,
insured small commercial banks, 1977-801
R atio

R e tu rn o n a s s e ts ( p e r c e n t) ............

1. Return on assets, insured small commercial banks,
1977 and 1980

1977

1978

1979

1980

.98

1.04

1.15

1.19

Thousands of banks

times
A s s e ts to e q u ity (le v e ra g e )............

12.67 12.64 12.37 12.01

equals
R e tu rn o n e q u ity ( p e r c e n t) ............

1

1

12.43 13.13 14.25 14.27

1

. S e e n o te
to ta b le . E q u ity a n d a s s e ts a re a v e ra g e . R e tu rn is
b o tto m -lin e n e t in c o m e . R o u n d in g e r r o r c a u s e s slig h t v a ria tio n s.

In considering the sound earnings performance
of small banks in the aggregate, the extremely
good performance of a group of small banks
could be masking an increase in the number of
problem situations. In order to address this type
of concern, frequency distributions for return on
average assets were calculated. The histograms
of these distributions for 1977 and 1980 show a
discernible improvement in the overall distribu­
tions (chart 1). The proportion of small banks
with a return on assets of less than 0.6 percent
decreased from 16.4 percent in 1977 to 10.5
percent in 1980.4 At the upper end of the scale,
those reporting returns greater than 1 percent
increased from 51.0 percent in 1977 to 68.9
percent in 1980.

Percent
S m all b a n k s in c lu d e all F D IC -in s u re d c o m m e rc ia l b a n k s lo c a te d in
th e U n ite d S ta te s w ith to ta l a s s e ts o f le ss th a n
m illio n a t y e a r-e n d
an d e x c lu d e n e w b a n k s . R e tu r n o n a s s e ts is n e t in c o m e to a v e ra g e
to ta l a s s e ts . F ig u re a b o v e b a r is th e p e r c e n t o f to ta l n u m b e r o f b a n k s .

$100

increases in loan provision ratios in 1980 are an
indication that asset quality may be deteriorat­
ing. Another indication is a jump in net loan
charge-offs as a percent of average loans to 0.40
percent in 1980 from the prior three-year average
of 0.32 percent.
3.

Loan-quality ratios, insured small commercial
banks, 1977-801

A s se t Q u a l it y

1977 1978 1979 1980

R a tio

Asset quality is an important but illusive aspect
of financial performance. Eventually, deteriorat­
ing asset quality surfaces as increased loan-loss
provisions and net loan losses. As already noted,
the loan-loss provision as a percent of assets
moved upward in 1980 from a fairly steady level
for the previous three years. It also increased as
a percent of average loans (table 3). The loanloss provision rose more as a percent of loans
than as a percent of assets because of a reduction
in the ratio of loans to assets (table 4). These

4. The proportion of small banks with losses over the fouryear period was 4.31 percent (560) in 1977, 3.43 percent (429)
in 1978, 2.73 percent (344) in 1979, and 2.97 percent (372) in
1980. Small banks exclude new banks, which among other
atypical characteristics usually operate at a loss initially.



N e t lo a n lo s s e s a s a p e r c e n t o f
a v e ra g e l o a n s ...................................
L o a n -lo ss p ro v is io n a s a p e rc e n t o f
a v e ra g e l o a n s ...................................
L o a n -lo ss re s e rv e s a s a p e rc e n t o f
lo a n s (y e a r-e n d
............................

)2

1

1

.33
.41
.91

.32
.44
.90

.32
.43
.93

.40
.48
.97

1

. S e e n o te
to ta b le . L o a n s e x c lu d e u n e a rn e d in c o m e a n d
in c lu d e lo a n v a lu a tio n re s e rv e s .
. L o a n -lo ss r e s e rv e s in c lu d e o n ly th e lo a n v a lu a tio n p o rtio n .

2

Several reasons for deteriorating asset quality
are possible. One is the sharp economic down­
turn in the second quarter of 1980 and continuing
sluggishness in several key economic sectors.
Another is high average interest rates: these high
rates contribute to lending problems because
some borrowers lack the ability either to pass
along or to absorb increased funding costs. A
third is more lenient bankruptcy laws, which

Financial Performance o f Small Banks, 1977-80

4.

Portfolio composition as a percent of total
assets, insured small commercial banks,
1977-801
P o rtfo lio c o m p o s itio n

2

I n te re s t-e a rn in g a s s e ts ..............................
T o ta l lo a n s (ex clu d in g
u n e a rn e d i n c o m e ) ..........................
R ea l e s t a t e ...............................................
A g ric u ltu ra l ..........................................
C o m m e rc ia l a n d in d u s tr i a l..............
C o n s u m e r ...............................................
O th e r ........................................................
U n e a rn e d in c o m e o n
ab o v e it e m s ...................................

3

S e c u r itie s .....................................................
U .S . T r e a s u r y ........................................
U .S . g o v e rn m e n t a g e n c ie s ..............
S ta te a n d p o litic a l
s u b d iv is io n s ...................................
O th e r b o n d s a n d s t o c k .....................
G ro ss fe d e ra l fu n d s s o ld a n d
re v e r s e R P s ........................................
In te re s t-b e a rin g d e p o s i t s .....................

1

1977 1978 1979 1980
87.7
54.4
18.2
8.1
11.9
16.8
1.4
1.9
29.1
10.7
5.3
12.4
.7

88.8
56.9
19.6
8.3
12.2
17.4
1.4
2.0
27.9
9.5
5.4
12.4
.6

88.7
56.2
19.6
8.4
12.1
16.9
1.4
2.0
26.8
8.8
5.6
11.9
.5

89.4
52.8
18.5
7.9
12.1
14.7
1.4
1.8
29.4
10.0
6.9
11.9
.5

4.2
0

3.4
.8

4.9
.9

5.7
1.7

. S m all b a n k s in c lu d e all F D IC -in s u re d c o m m e rc ia l b a n k s lo c a te d
in th e U n ite d S ta te s w ith to ta l a s s e ts o f le ss th a n
m illion a t y e a re n d a n d e x c lu d e n ew b a n k s .
. P e rc e n ta g e s a re b a s e d o n th e e n d -o f-y e a r a g g re g a te d a ta .
. In c lu d e s re a l e s ta te lo a n s s e c u re d by fa rm la n d .

$100

2
3

may be reducing the incentive of some borrowers
“to stick it out.”
In spite of the increase in net charge-offs in
1980, the loan-loss provision exceeded the actual
net charge-offs. As a result, the loan-loss re­
serves as a percent of loans reached a four-year
high of 0.97 percent (table 3).

B a l a n c e -S h e e t Tr e n d s
Liability composition changed substantially from
1977 through 1980, particularly shifts to more
expensive funding sources, as table 5 shows.
Demand deposits have declined at an accelerat­
ing rate from 31.2 percent of assets at year-end
1977 to 26.1 percent at year-end 1980. Over the
same period, regular savings deposits declined
from 25.0 percent to 17.5 percent. In contrast,
comparatively costly money market certificates
increased from zero at year-end 1977 to 12.9
percent in 1979, and then jumped to 20.4 percent
at year-end 1980.
In considering why these changes in liability
composition are now taking place, two reasons
stand out. First, high interest rates have created
a general awareness that much higher yields are
available than those offered on traditional depos­



483

it instruments. Second, the success of near-bank
competition, such as money market funds, in
availing bank customers with the opportunity to
earn higher yields has forced the banking indus­
try also to provide deposit alternatives more
closely aligned with market rates. One indication
that many bank customers are highly rate con­
scious is the dramatic increase in the volume of
money market certificates since their inception
in 1977.
Among small banks, asset composition has
changed much less than liability composition.
From year-end 1977 through 1980, the proportion
of total loans to assets decreased from 54.4
percent to 52.8 percent. Change in the composi­
tion of loans was primarily limited to a decrease
in consumer lending. Over the same period, the
proportion of total securities to assets decreased
and then rebounded to slightly above the 1977
level as a result of increases in the proportions of
U.S. Treasury and government agency securi­
ties.
Also, indications are that small banks are
shifting to greater use of short-term, rate-sensitive assets. In particular, holdings of short-term
placements (federal funds sold, reverse repur­
chase agreements, and interest-bearing deposits)
have increased from 4.2 percent of assets at yearend 1977 to 7.4 percent at year-end 1980.
Although only sketchy data are available with
regard to the asset maturity composition of small
5.

Liability composition as a percent o f total assets,
insured small commercial banks, 1977-801

1977

L ia b ility c o m p o sitio n
F in a n c ia l c l a im s ...................
D e m a n d d e p o s i t s ............
In te re st-b e a rin g c la im s .
S av in g s d e p o s its .........
N O W s and A T S s .
T im e d e p o s i t s ..............
L a rg e t i m e ................
M M C s .......................
S u b o rd in a te d n o te s
a n d d e b e n tu r e s . .
G ro ss fe d e ra l fu n d s
p u rc h a s e d a n d
R P s ..........................
O th e r b o r r o w in g s ........

2

2

1.
2.

1

2

1979

1980

91.2
31.2
60.0
25.0
0
33.9
7.9
0
.2

91.1
30.1
61.0
23.6
.3
35.6
8.8
2.6
.2

90.8
28.8
62.0
19.8
.6
40.4
9.4
12.9
.2

90.3
26.1
64.3
17.5
1.2
45.0
9.8
20.4
.2

.8
.1

1.0
.5

1.0
.5

1.1
.5

2

M em o
Y e a r-e n d to ta l a s s e ts
(billions o f d o l l a r s ) .. .
N u m b e r o f in s titu tio n s . . .

1978

309.7 325.0 337.9 354.4
13,006 12,841 12,612 12,527
4

S ee n o te s
and
to ta b le .
N O W s a re n e g o tia b le o rd e rs o f w ith d ra w a l; A T S s a re sav in g s
d e p o sits a u th o riz e d fo r a u to m a tic tra n s fe r; M M C s a re m o n e y m a rk e t
tim e d e p o sits in d e n o m in a tio n s o f $
b u t le ss th a n $
w ith
original m a tu ritie s o f
w e e k s ; a n d R P s a re re p u rc h a s e a g re e m e n ts.

26

10,000

100,000

484

F e d e r a l R e s e r v e B u lle tin □ J u n e 1981

banks, the sharp increase in asset yields in the
last several years suggests that small banks have
been able to benefit from rising rates as a result
of a moderately short-term maturity or variablerate asset structure. Unlike the thrift institutions,
aggregate holdings of real estate loans, most of
which are fixed rate and long term, accounted for
less than one-fifth of the assets at small commer­
cial banks at year-end 1980.

7.

Internal equity growth factors, insured small
commercial banks, 1977-80'
R a tio

R e tu rn o n a v e ra g e e q u ity
(p e r c e n t ............................

)2

1977

1978

1979

1980

12.43

13.13

14.25

14.27

times
E a rn in g s r e te n tio n

3 ................

.7379

.7422

.7484

.7349

equals
I n te rn a l e q u ity g ro w th
( p e r c e n t) ..............................

C a p i t a l Tr e n d s

Capital ratios for small banks have increased
steadily over the four-year period. Measured in
terms of the traditional equity as a percent of
total assets, the average capital ratio for the
group rose 57 basis points to 8.39 percent (table
6). Furthermore, the risk-asset ratio proxy of
equity plus reserves as a percent of loans has
also increased. In comparison, the increase in
capital ratios was less for banks in asset size
classes up to $1 billion. For banks with assets of
more than $1 billion, equity as a percent of assets
declined 27 basis points to 4.55 percent.
6.

1.
2.
3.

1

9.17

9.74

10.66

10.49

4

S ee n o te
to ta b le .
R e tu rn is b o tto m -lin e n e t in c o m e .
E a rn in g s r e te n tio n is c a lc u la te d a s n e t in c o m e m in u s d iv id e n d s
d e c la re d d iv id e d b y n e t in c o m e .

An improvement in the frequency distribution
of capital ratios is in keeping with the broadbased improvement in earnings apparent in the
histograms for return on assets. The capital ratio
histograms for 1977 and 1980 in chart 2 indicate
improvement at both ends of the distribution.
From 1977 to 1980, small banks with capital
ratios of less than 7 percent decreased from 28.9

Capital ratio trends, insured small commercial
banks, year-end, 1977-80'

2. Capital ratios, insured small commercial banks,
1977 1978 1979 1980

R a tio

Thousands of banks

E q u ity a s a p e rc e n t o f
to ta l a s s e ts ( y e a r-e n d ).......................

7.82 7.95 8.16 8.39

E q u ity p lu s v a lu a tio n re s e rv e s
a s a p e rc e n t o f lo a n s ( y e a r - e n d ) . .

15.30 14.90 15.46 16.91

1.
2.

1

2

year-end, 1977 and 1980

3
HP*
2

4

S e e n o te s
and
to ta b le .
L o a n s e x c lu d e u n e a rn e d in c o m e a n d in c lu d e lo a n v a lu a tio n
r e s e rv e s .

The higher capital ratios at small banks are
primarily a result of the growth of equity generat­
ed from retained earnings exceeding the growth
in assets. Over the four-year period, the average
annual internal equity growth of 10.02 percent
outpaced the average annual asset growth of 5.41
percent.
The interrelation between internal equity
growth and its components is presented as an
equation in table 7. From 1977 to 1980, the
internal equity growth rate increased 132 basis
points, to 10.49 percent, because of increasing
return on equity (profitability) and a consistently
high earnings retention rate.



1
0

3
2

1
0

S m all b a n k s in c lu d e all F D IC -in s u re d c o m m e rc ia l b a n k s lo c a te d in
th e U n ite d S ta te s w ith to ta l a s s e ts o f le ss th a n
m illio n a t y e a r-e n d
a n d e x c lu d e n e w b a n k s . C a p ita l r a tio is e q u ity c a p ita l to to ta l a s s e ts .
F ig u re a b o v e b a r is th e p e r c e n t o f to ta l n u m b e r o f b a n k s .

$100

Financial Performance o f Small Banks , 1977-80

percent to 17.1 percent. At the other end, banks
with capital ratios greater than 10 percent in­
creased from 17.1 percent to 22.5 percent.
The stronger capital ratios at small banks have
several significant implications. In combination
with good earnings and increased loan reserves,
the higher capital ratios provide a substantial
cushion to adjust to various forms of adversity.
Moreover, those banks that have substantially
augmented capital accounts are better able to
serve local businesses because of the resulting
increase in their lending limits and because of
their greater financial stability.

S ummary

of

F in d in g s

The great majority of small commercial banks
fared quite well from 1977 through 1980. In
considering that this period was characterized by
many changes and some adversities, this finding
should by no means be regarded as self-evident.




485

To the contrary, the challenge is to answer the
question, “Why have small banks done so
well?”
In answering this question, the most important
consideration appears to be that earnings have
improved because the average cost of funds has
not increased as much as yields on average
assets. In addition, small banks have benefited
from moderate loan-loss provisions.
To conclude that small banks have fared well
is not to downplay the major challenges that they
still face. These challenges include the possibility
of continuing high and volatile interest rates;
deposit deregulation (including the phaseout of
Regulation Q and the introduction of nationwide
negotiable order of withdrawal accounts); in­
creasing competition from other banks and thrift
and nondepository institutions; and the possibili­
ty of some deterioration in asset quality. In
combination, these factors will provide a con­
tinuing test of each small bank’s ability to main­
tain satisfactory profit margins.
□

486

Treasury and Federal Reserve Foreign
Exchange Operations: Interim Report
This interim re p o rt , covering the p e rio d F ebru­
ary through A pril 1981 , is the seven teen th o f a
series providing inform ation on Treasury and
S ystem fo reig n exchange operation s to su p ple­
m ent the regular series o f sem iannual reports
th at are usually issu ed each M arch a n d S e p tem ­
ber. It w as p re p a re d by S c o tt E. P a rd e e , M a n ag­
er o f Foreign O perations o f the S ystem Open
M arket A cco u n t and Senior Vice P resid en t in the
Foreign Function o f the F ederal R eserve B ank o f
N ew York.

Coming into the three-month period under re­
view, the U.S. dollar was in strong demand
against most major currencies. The dollar was
bolstered by the relatively favorable U.S. current-account position, which has remained in
surplus in contrast to the deficits of many other
industrial countries, and by the wide interest
differentials in favor of dollar placements. The
bidding for dollars also reflected bullish senti­
ment on the part of market participants that
responded positively to the determination shown
by the Reagan administration to deal with infla­
tion and to revitalize the U.S. economy.
At the same time, as traders focused on politi­
cal and economic problems facing Western Euro­
pean countries, sentiment toward other curren­
cies became increasingly bearish. The German
mark was under particularly heavy selling pres­
sures both against the dollar and against the
other European currencies linked formally or
informally to the mark. By early February, the
markets for dollars had become increasingly one
way, with the dollar rising virtually every day.
Through mid-February, the dollar advanced a
further 4 percent against the German mark and
the other continental European currencies, for a
total rise on the order of 20 percent since the
previous September. In addition, the dollar rose
3 percent against sterling, Vi percent against the
Japanese yen, and 3A percent against the Canadi­
an dollar over the first half of February.




The U.S. authorities continued to intervene in
the exchange markets, buying foreign currencies
on days in which the dollar was rising sharply
and, on occasion, placing simultaneous bids and
offers to settle a volatile market. In all, the
Trading Desk at the Federal Reserve Bank of
New York operated in the market as a net buyer
of marks on nine of the fourteen trading days
between February 2 and 23. The total marks thus
acquired amounted to $610.0 million equivalent,
which was split evenly between the Federal
Reserve and the Treasury. An additional $168.4
million equivalent of marks was bought from
correspondents. The proceeds of these market
and correspondent purchases were added to Sys­
tem and Treasury balances.
After mid-February, the demand for dollars
lost steam. By that time, interest rates in the
United States were easing somewhat, as the
growth rates for the narrow monetary aggregates
were coming in below the Federal Reserve’s
target range. Moreover, the authorities of other
countries were acting to raise interest rates or to
tighten liquidity conditions in their markets. In
particular, on February 19, the German Federal
Bank took action to defend the mark, suspending
the usual Lombard facility to commercial banks
and announcing that Lombard credits would be
made available at its discretion and at rates that
could vary on a day-to-day basis. Interest rates
in Germany immediately shot up. As traders
scrambled to cover short positions, the mark
rebounded against the dollar and rose from the
1.

Federal Reserve System activity under
reciprocal currency arrangements, January 31April 30, 19811
M illio n s o f d o lla rs e q u iv a le n t; d ra w in g s , o r r e p a y m e n ts ( - )

T ra n s a c tio n s w ith

B ank o f S w e d e n . . .

C o m m it­
m e n ts ,
Jan.
,

31 1981

200.0

1. Data are on a value-date basis.

A u g u st
th ro u g h
A p r.
,

30 1981

-

200.0

C o m m it­
m e n ts ,
A p r.
,

30 1981
0

48 7

bottom to the top of the European Monetary
System (EMS) band.
Over late February and early March, dollar
rates fell back with wide day-to-day movements.
On balance, from late February through midMarch, the dollar dropped off some 8 percent
against the German mark and other EMS curren­
cies while holding fairly steady against the pound
sterling and the Japanese yen and declining less
than 2 percent against the Canadian dollar.
From late February to late March, the U.S.
authorities did not intervene in the exchange
market. On March 30, when the dollar fell sharp­
ly after the assassination attempt on President
Reagan, the Trading Desk stepped in to settle the
market, selling $74.4 million equivalent of marks
out of balances, split evenly between the Federal
Reserve and the Treasury. Dollar rates quickly
rebounded the following day.
In April, the dollar again came into heavy
demand. Favorable sentiment toward the Reagan
administration remained a generally positive psy­
chological factor. Market participants expressed
some concern that the administration’s tax cut
proposals might swell rather than reduce the
budget deficit, but this concern reinforced expec­
tations that U.S. interest rates would remain high
and that the dollar would stay strong. By early
April, indicators were showing that the U.S.
economy was stronger than expected. The ex­
pansion in the underlying economy also began to
show through more clearly in the demand for
money and credit, and even the narrow measures
of the monetary aggregates began to grow rapid­
ly. With the Federal Reserve restraining the
growth of reserves, the strong demand for money
prompted a renewed rise in U.S. interest rates.
Although some central banks abroad continued
to raise their own interest rates, or to take other
measures to keep a tight rein on liquidity, foreign
interest rates did not rise as sharply as rates in
the United States so that large interest differen­
tials in favor of dollar placements widened.
In mid-April the Treasury announced that,
after study and consultation with officials of the
Federal Reserve, the U.S. authorities had adopt­
ed a minimal intervention approach and would
now intervene only when necessary to counter
conditions of disorder in the exchange market. In
this prevailing market atmosphere, many partici­
pants interpreted this change in approach as



2.

N et profits and losses ( - ) on U .S. Treasury and
Federal Reserve current foreign exchange
operations1
M illio n s o f d o lla rs
U .S . T re a s u r y
P e rio d

F e d e ra l
R e s e rv e

1
30 1981

F e b ru a ry
th ro u g h
A p ril
,
....
V a lu a tio n p ro fits a n d
lo s s e s o n o u ts ta n d ­
ing a s s e ts a n d lia­
b ilities a s o f
A p ril
,
....

30 1981

1.

-

-

E xchange
S ta b iliz a tio n
Fund

1.4

271.1

-

-

3.8

1, 106.9

G e n e ra l
A ccount

0

958.5

D a ta a re o n a v a lu e -d a te b a s is .

removing a constraint on the dollar’s rise. On
May 4, in testimony before the Joint Economic
Committee of the Congress, Treasury Under
Secretary Sprinkel set forth the rationale for this
more limited intervention approach.
With the dollar again in demand, dollar rates
were bid up sharply, frequently in one-way mar­
kets through the end of April. From the midMarch lows, the dollar rose by a net 8 to 9
percent against the German mark and other
currencies linked directly or indirectly to the
mark, 7 percent against the pound sterling, 5
percent against the Japanese yen, and V/i per­
cent against the Canadian dollar.
The U.S. authorities did not intervene in the
markets in April, although the Desk continued to
operate in the market as agent for other central
banks. By the month-end, several foreign central
banks were intervening fairly heavily in support
of their currencies either against the dollar or,
within the EMS, against the German mark,
which remained firm among European curren­
cies. In April, after a heavy reflux of funds into
the Swedish krona, the Bank of Sweden repaid,
before maturity, the $200 million drawn in Janu­
ary under the swap arrangement with the Federal
Reserve. In operations during the three-month
period, the Federal Reserve had losses of $1.4
million on its exchange market operations, while
the Exchange Stabilization Fund (ESF) lost $3.8
million. As of April 30, valuation losses on
outstanding balances were $271.1 million for the
System and $1,106.9 million for the ESF. The
Treasury’s general account had valuation gains
of $958.5 million, reflecting its foreign currency
borrowings.
□

488

Industrial Production
R elea sed f o r pu blication June 16
Industrial production increased an estimated 0.3
percent in May, after a downward revised 0.1
percent rise in April. The May increase was
concentrated in production of motor vehicles and
parts, but gains also occurred in equipment and
in some materials. At 152.8 percent of the 1967
average, industrial production in May was 6.1
percent above the depressed level of a year
earlier and slightly below the latest index high
reached in March 1979.
In market groupings, output of consumer
goods advanced Vi percent in May, mainly due to
a rise of 7.5 percent in production of autos and
utility vehicles. Autos were assembled at an
annual rate of 7.3 million units, up from a rate of
6.8 million units in April. Production of home
goods advanced slightly in May, after a small
decline in April, as output of some home furnish­
ings increased further while that of appliances
declined further. Nondurable consumer goods
output was about unchanged. Production of busi­
ness and defense equipment continued to expand
in May. Output of construction supplies declined
0.7 percent, after a similar drop in the preceding
month.
Output of materials increased 0.3 percent in
May. Production of durable goods materials rose

p Preliminary.




e Estimated.

Seasonally adjusted, ratio scale, 1967= 100

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

1967 = 100

P e r c e n ta g e c h a n g e fro m p re c e d in g m o n th

1981

1981

A pr.p

M aye

Jan.

Feb.

M ar.

A p r.

M ay

P e rc e n ta g e
change,
M ay
to
M ay

152.3
151.6
150.4
149.3
144.0
151.3
182.2
101.0
156.0
146.4
153.4

152.8
152.1
151.1
150.0
146.9
151.2
183.3
101.4
155.6
145.4
153.8

.5
.3
.0
-.3
- 1.8
.2
.6
.3
1.0
1.9
.8

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

.5
.7
.9
.9
3.2
.1
1.2
.6
-.3
.2
.1

.1
.5
.7
.7
.5
.7
.9
.2
-.3
-.8
-.6

.3
.3
.5
.5
2.0
-.1
.6
.4
-.3
-.7
.3

6.1
5.8
5.6
5.3
14.1
2.4
6.6
4.3
6.4
9.3
6.6

G ro u p in g

T o ta l in d u s tria l p ro d u c tio n . . .
P ro d u c ts , t o t a l ............................
F in a l p r o d u c t s ..........................
C o n s u m e r g o o d s ................
D u r a b le ................................
N o n d u r a b le .......................
B u s in e s s e q u i p m e n t .........
D e fe n s e a n d s p a c e ..............
In te rm e d ia te p r o d u c t s .........
C o n s tru c tio n s u p p lie s ___
M a t e r i a l s .......................................

0.4 percent, largely due to increases in parts for
autos and for equipment; a further rise in produc­
tion of nondurable goods materials reflected
gains in the output of chemicals. Production of
energy materials was reduced 0.6 percent further
in May.

N ote . Indexes are seasonally adjusted.

1980
1981

Industrial Production

489

Major market groupings

1967 = 100

P e rc e n ta g e c h a n g e fro m p re c e d in g m o n th

1981

1981

G ro u p in g

M a n u fa c tu rin g .....................
D u r a b le ..............................
N o n d u r a b l e .....................
M in in g .....................................
U tilitie s ...................................
p P re lim in a ry .

A pr.P

M aye

Jan.

F eb.

M ar.

152.3
142.7
166.1
136.2
170.8

152.9
143.5
166.6
135.7
171.3

.3
.6
.1
1.3
.4

-.1
-.5
.5
1.6
- 1.5

.5
1.1
-.4
.3
.5

e E s tim a te d .

-

.4
.4
.4
5.3
.9

M ay

.4
.6
.3
-.4
.3

6.6
7.7
5.4
1.7
2.1

1980
1981

N o t e . In d e x e s a re s e a so n a lly a d ju ste d .

In industry groupings, manufacturing output
increased 0.4 percent, after similar rises in April
and March. Production of durable goods indus­
tries advanced 0.6 percent, reflecting gains in
machinery and motor vehicles and parts. Output




A p r.

P e rc e n ta g e
change,
M ay
to
M ay

of nondurables rose slightly further, with ad­
vances widespread except for foods and petro­
leum products. Mining output was reduced
slightly further as the coal strike continued, and
output of utilities increased 0.3 percent in May.

490

Statement to Congress
Statement by J. Charles Partee, Member, Board
o f Governors o f the Federal Reserve System,
before the Subcommittee on General Oversight
and Renegotiation o f the Committee on Banking,
Finance and Urban Affairs, U.S. House o f Rep­
resentatives, June 4, 1981.
I am pleased to appear before this subcommittee
to discuss the examination process for banks and
recent efforts to make examinations more cost
effective and more uniform among the federal
supervisory agencies. Concerns about the effi­
ciency and effectiveness of the examination
process are quite understandable, given the com­
plex governmental structure that our nation has
devised for the supervision and regulation of
depository institutions. Five federal agencies are
now directly responsible for the supervision and
regulation of commercial banks and thrift institu­
tions, and under the “dual banking system”
concept, all 50 states also have direct oversight
responsibilities. It is important to note, however,
that over a long period of time, interagency
arrangements have been directed to achieving
uniformity when appropriate and to avoid dupli­
cation and overlap whenever possible. These
interagency efforts are an ongoing process be­
cause new accommodations are required as our
financial system evolves.
In 1978, the Congress, with the Board’s en­
dorsement, reviewed the need for a more formal
coordination structure and created the Examina­
tion Council to promote greater uniformity in
examination procedures and supervisory policy
among the five federal supervisory agencies. So
far the Examination Council has made good
progress in carrying out this congressional man­
date. Among its achievements have been the
development of a uniform system for rating the
financial condition of banks and thrift institutions
and the creation of a uniform bank performance
report that will be used in monitoring the situa­
tion of individual institutions by the three bank­
ing agencies. The council also has developed a



uniform policy for coordinating the examination
of holding companies and their major bank sub­
sidiaries when the organization either is very
large or is experiencing financial difficulties or
deterioration.
Currently, the Examination Council has an
interagency task force studying additional ways
to bring greater uniformity to the examination
process. Of course, achieving complete unifor­
mity in examination procedures and techniques
is not practical or desirable. For example, the
supervisory agencies obviously would not want
to employ the same methods in examining large
multinational commercial banks as they would
use in examining credit unions. Also, we must
expect differences in bank examination proce­
dures between the Comptroller of the Currency
on one hand and the Federal Reserve and the
Federal Deposit Insurance Corporation on the
other, because the latter two agencies supervise
state banks and must coordinate and communi­
cate with state bank supervisors that are the
chartering authority. Our objectives are already
much the same, however, and allowing for prac­
tical differences such as these, we will continue
to strive for greater procedural uniformity
through the work of the Examination Council.
In recent months the General Accounting Of­
fice has issued two reports to the Congress
relating to the examination of depository institu­
tions. The first made a number of recommenda­
tions relating to current agency examination pro­
cedures and techniques. Some of these recom­
mendations have already been implemented by
the Federal Reserve and the other agencies,
while others are presently being considered by
the Examination Council. The second report in­
volved a GAO proposal for interchanging exam­
iners among the three federal banking agencies.
As part of its first report, the GAO recom­
mended that the Examination Council develop
uniform procedures for evaluating state banking
agencies and then have the federal banking agen­
cies accept the examination reports of those

Statem ent to Congress

states that received acceptable ratings. The ratio­
nale for this proposal was to economize on
examiner resources by terminating both federal
and state examinations of state-chartered banks.
While the Board endorses the objective of the
GAO proposal, it cannot support the specific
recommendation. First, we do not believe that
the federal agencies could adequately carry out
their supervisory responsibilities for state banks
if they completely withdrew from the examina­
tion process because this is a key element in
effective supervision. In addition, we believe
that any ongoing evaluation of state banking
agencies by a federal agency would inevitably
prove to be awkward and could damage existing
federal-state agency relationships if a number of
state agencies were judged to have inadequate
examination capabilities.
While the Board cannot endorse this GAO
recommendation, we are anxious to continue and
expand our current close working relationships
with state banking authorities. At present the
Federal Reserve has joint examination arrange­
ments with 16 states and concurrent examination
arrangements with 15 states. Joint examinations
entail a sharing of the workload between federal
and state examiners and the preparation of a
single report. Concurrent examinations involve a
similar sharing of workload and resources with
the preparation of separate federal and state
reports. As a result of these cooperative exam­
ination programs, more than half of all state
member banks, including most of our largest
ones, are now examined on a joint or concurrent
basis. In states where such cooperative programs
are not utilized, the Federal Reserve attempts to
coordinate timing with the states in order to
space examinations more effectively. The Feder­
al Reserve also receives and analyzes state ex­
amination reports, and the Board has permitted
the Reserve Banks to substitute an examination
conducted by a state for one of the two annual
examinations that we require of problem banks.
In addition to these efforts, the Federal Re­
serve is expanding federal-state cooperation
through the initiation of an alternate-year exami­
nation program with state banking authorities.
Under this program, relatively trouble-free
banks selected by the Reserve Banks and the
states will be examined by the agencies in alter­
nate years. This program will lessen the burden



491

of examinations on commercial banks and econ­
omize on the use of examiner resources, which
will permit both the Federal Reserve and the
states to target more of their examination efforts
at those banks most in need of supervisory
attention. An alternate-year program has al­
ready been arranged with the State of Georgia,
and we are now in the process of establishing
programs with a number of other state banking
departments.
In recent years, the Federal Reserve has im­
plemented a number of initiatives to save re­
sources in its own examination program. For
example, the Federal Reserve is employing limited-scope examinations in certain cases for which
it is not deemed necessary to collect the detailed
information resulting in a full-scale examination.
Also, Federal Reserve examiners are relying
more on information supplied by the banks when
the information is verified through testing and
statistical sampling techniques.
In order to improve the allocation of examiner
resources, the System has recently reviewed its
examination frequency policy and has adopted a
more flexible approach that extends the time
between examinations for sound banks. In relat­
ing examination frequency to a bank’s financial
condition, the Federal Reserve can target more
resources to companies that warrant close super­
visory attention. The Federal Reserve is also
reviewing the possibility of limiting the time
spent by examiners at a bank to those tasks—
such as asset evaluation, assesssment of manage­
ment and internal controls, and compliance with
law and reporting requirements—that can best be
conducted on site. Such an approach would
make maximum use of surveillance and financial
analysis techniques that can be employed on an
ongoing basis off the bank’s premises. This ap­
proach also would economize on examiner salary
and travel expenses and lessen the burden of on­
site examination for the banks.
In addition to these Federal Reserve efforts, a
number of ongoing interagency programs have
proved to be successful in saving resources as
well as increasing uniformity. Both the shared
national credit program and the uniform country
exposure examination procedures, in place for
several years, have produced considerable sav­
ings and increased interagency consistency in
examination findings and conclusions. While

492

F e d e r a l R e s e r v e B u lle tin □ J u n e 1981

these programs were originally established at the
federal level, they have been expanded to in­
clude some state banking authorities.
In an apparent attempt to improve the struc­
ture of the federal examination forces, the GAO
has recommended the interchange of examiners
among the federal agencies as an interim step to a
possible eventual consolidation of the federal
examination forces, which the GAO appears to
favor. It asserts that an interchange or “pooling”
of federal examiners would reduce travel costs
by allowing banks to be examined by personnel
from the nearest agency office, even if that
agency is not the primary supervisor. The GAO
suggests that reducing travel by examiners would
also improve morale and lower personnel turn­
over, thereby improving the quality of the exami­
nation staff.
The Board strongly opposes this GAO recom­
mendation. As the GAO report points out, the
proposal would entail a number of statutory,
administrative, and procedural problems. Also,
the proposal gives little weight to the fact that the
federal agencies necessarily use somewhat dif­
ferent examination techniques and are responsi­
ble for enforcing somewhat different banking
laws. Given these differences, the use of examin­
ers interchangeably would require costly and
time-consuming retraining efforts and would tie
up resources that could be better spent in the
supervisory process. In sum, the Board dis­
agrees that the potential savings from the GAO
proposal would outweigh the additional training
costs and substantial coordination problems that
would be created by a large-scale examiner inter­
change.
The GAO’s proposal also would raise prob­
lems regarding examiner accountability and con­
trol. If an examiner from one agency were to
spend substantial time examining banks under
the primary supervision of other agencies, it
would no longer be clear to which agency the
examiner would in fact be accountable or how
that examiner’s performance could be fully eval­
uated.
The GAO’s proposal implicitly assumes that
the examination function and the supervisory
function are separate. As a practical matter, it
seems to me extremely difficult to separate the




examination function from overall supervision.
This is so because examiners are instrumental in
many important supervisory activities, including
identifying problems in a timely way, meeting
with management to discuss supervisory con­
cerns, and monitoring bank compliance with
programs for corrective action and formal en­
forcement actions. The accurate identification of
supervisory problems and the implementation of
remedial actions are largely dependent on the
clear lines of authority, communication, and
control that currently exist between supervisory
agencies and their field forces. The GAO propos­
al would obviously threaten this constructive
relationship and in the process could weaken the
quality of federal supervision.
The GAO’s interchange or pooling concept has
another shortcoming in that it would muddy
existing relationships between banking institu­
tions and those agencies responsible for super­
vising them. In disrupting these supervisory rela­
tionships, the proposal also could impair ongoing
programs for corrective action that had been
implemented and were being monitored by the
primary authority.
Finally, the Board believes that the GAO
proposal would fail to achieve what is claimed to
be an important benefit—the reduction of exam­
iner turnover. Separating examiners from the
supervisory process and committing them in­
stead to a large, impersonal professional pool
having no clear identification with a primary
regulator surely would erode examiner morale
and increase the dissatisfaction of people pos­
sessing highly marketable skills.
While the Board opposes the examiner inter­
change proposal, we do believe that examination
resources might be saved in some cases by
geographically relocating examiners of a given
agency. Indeed, the Federal Reserve has now
established five examination field offices, two
within the last two years. These five field offices,
together with the twelve Reserve Banks, give the
Federal Reserve seventeen examination facilities
throughout the country. Other geographic loca­
tions for additional field offices are under prelim­
inary review.
In concluding, I want to reaffirm the Federal
Reserve’s commitment to performing examina­

Statem ent to Congress

tions in the most efficient manner possible con­
sistent with meeting our supervisory responsibil­
ities. We are also committed to working toward
greater interagency uniformity in examination
procedures and supervisory policy through the
Examination Council. But we do not support any




493

sweeping changes in examiner organization or
accountability. Such changes would be totally
unwarranted in the current difficult economic
environment when a close and continuing over­
sight of the nation’s depository institutions is of
vital importance.
□

494

Announcements
P o l i c y S t a t e m e n t o n S a l e o f Th i r d P a r t y C o m m e r c ia l P a p e r b y S ta te
M em ber Ba n k s

The Federal Reserve Board has adopted a policy
statement providing guidelines to govern the sale
by state member banks of commercial paper
issued by firms not related to the bank.
The Board’s guidelines concerning the sale of
such third-party commercial paper (promissory
notes of corporations) are intended to assure safe
and sound banking practices. The Board will
monitor activity in this area closely and will
modify or supplement its guidelines as neces­
sary.
The policy statement was effective May 28,
1981, but the Board will accept comment, for
review by the Board, through July 31, 1981.
The policy statement follows.
The Board of Governors has recently determined
that the sale of commercial paper by a state member
bank for unaffiliated issuers (third-party commercial
paper1) did not violate the Glass-Steagall Act (12
U .S.C . 24 Seventh, and 378). The Board was con­
cerned, however, that the sale of third-party commer­
cial paper2 might, in some circumstances, involve
unsafe or unsound practices. Accordingly, in the inter­
est of safe and sound banking, the Board believes that
any state member bank that may decide to engage in
the sale of third-party commercial paper should adhere
to the following guidelines:3
1.
A state member bank should sell only primequality commercial paper that qualifies for the exemp­
tion provided by section 3(a)(3) of the Securities Act of

1

. E x c lu d in g c o m m e rc ia l p a p e r is s u e d b y a p a r e n t b a n k
h o ld in g c o m p a n y ; th e B o a r d h a s p r e v io u s ly a d v is e d b a n k
h o ld in g c o m p a n ie s c o n c e r n in g s a le s o f b a n k h o ld in g c o m p a n y
c o m m e rc ia l p a p e r (le tte r d a te d J u n e
,
).
. B a n k s h a v e tra d itio n a lly p u r c h a s e d c o m m e rc ia l p a p e r
u p o n th e o r d e r , a n d f o r th e a c c o u n t o f, c u s to m e r s , w h e r e a s
h e r e t h e b a n k is e s s e n t i a l l y a c t i n g f o r t h e i s s u e r ; t h e f o r m e r
a c t i v i t y is n o t s u b j e c t t o t h e g u i d e l i n e s s e t f o r t h in t h i s p o l i c y
s ta te m e n t.
. T h e B o a r d d o e s n o t e x p e c t to ta k e e n f o r c e m e n t a c tio n to
r e s tr a in u n s a f e o r u n s o u n d b a n k in g p r a c tic e s w ith r e s p e c t to
t h ir d - p a r ty c o m m e r c ia l- p a p e r s e llin g a c tiv itie s o f a n y s ta te
m e m b e r b a n k th a t c o n d u c ts s u c h a c tiv itie s w ith in th e s e
g u id e lin e s .

2

3




27 1980

1933 (15 U .S.C . 77c(a)(3)). The bank should take
appropriate precaution to assure itself that the section
3(a)(3) exemption applies to the commercial paper it
proposes to sell. In this regard, (a) the bank should
determine that the commercial paper it proposes to sell
is of prime quality; (b) the bank may rely on represen­
tations of the issuer with respect to the use of pro­
ceeds; (c) except as further limited by paragraphs 7
and 8, the bank should sell commercial paper only to
financially sophisticated customers, such as customers
that regularly purchase a variety of short-term credit
instruments, and should not advertise commercial
paper for sale to the general public; (d) the bank should
obtain periodically, and maintain in the bank’s rec­
ords, a current legal opinion o f counsel that the section
3(a)(3) exemption is available. In addition, the bank
should sell commercial paper in minimum denomina­
tions that are consistent with applicable law and, in no
event, should sell commercial paper in minimum de­
nominations of less than $100,000.
2. The selling bank should maintain a complete
credit analysis of the issuer at all times and should
exercise due diligence in investigating the financial
affairs of the issuer. Particular attention should be
given to the liquidity position of the issuer and its lines
of credit. All commercial paper sold by the bank
should be fully supported by available lines of credit.
Any participation by the selling bank in such lines of
credit should be made only after consideration o f the
bank’s legal lending limit.
3. Senior management should adopt internal limits
for the amount(s) of commercial paper that may be
sold by the bank for a single or related issuer(s). In
determining the internal limits, senior management
should consider the financial condition of the issuer,
all lines of credit available to the issuer, and the bank’s
participation in the lines of credit and any other
extensions of credit or commitments to the issuer by
the bank (including commercial paper purchased by
the bank for its own account).
4. Chronological records of original entry should be
maintained that contain an itemized daily record of all
sales and purchases of commercial paper. The records
should also contain the following: a designation of the
commercial paper; nature of the transaction, for exam­
ple purchase or sale; trade and settlement dates;
contra-party name or designation; and net proceeds,
discount rate, or yield to maturity.
5. Account records should be maintained for each
issuer that reflect the following: all sales and pur­
chases of commercial paper placed by the bank for
that issuer; all lines of credit available to the issuer; the

495

amount of the bank’s participation in the lines of
credit; and a current balance o f all extensions of credit
and a description of other commitments to the issuer.
6. Account records should be maintained for each
purchaser that reflect all sales and purchases of com­
mercial paper for the account of that customer.
7. Commercial paper should not be sold to fiduciary
accounts over which the bank has investment discre­
tion.
8. Commercial paper should not be sold to the
bank’s parent holding company (unless it is a bank) or
to any nonbank affiliate of the bank.
9. The bank should furnish to all purchasers of
commercial paper written advice in connection with all
purchases that (a) the commercial paper is not an
obligation of the bank, and is not insured by the
Federal Deposit Insurance Corporation; (b) the bank
has no obligation to repurchase any of the paper sold;
(c) the bank is under no obligation to lend funds to the
issuer (except pursuant to existing credit lines, or
other commitments, if any); and (d) copies of the
issuer’s most recently published financial statements
will be furnished upon request.

P roposed A

c t io n

The Federal Reserve Board has published for
comment a proposed official staff commentary
following up and interpreting the Board’s simpli­
fied Regulation Z (Truth in Lending), which
implements the Truth in Lending Simplification
and Reform Act. Comment should be received
by July 10, 1981.

Home states of the 112 foreign banking organi­
zations operating in the United States are as
follows: New York, 79; California, 27; Florida,
2; Illinois, 2; Massachusetts, 1; and the District
of Columbia, 1.
R e g u l a t io n L : R

The Federal Reserve Board announced on May 21,
1981, that it had amended its rules of delegation
of authority to permit the Board’s General Coun­
sel to expedite certain exceptions to the rules
against interlocking managements of depository
institutions.
Such exceptions are provided for under the
Depository Institution Management Interlocks
Act when one of the institutions—usually a small
nonmember institution—is in particular need of
management expertise. In such cases, the Board
relies on the advice of the primary supervisor of
the institution needing assistance to determine if
an exception should be made to allow manage­
ment from a member bank or a bank holding
company to lend such assistance.
The delegation of authority to the General
Counsel is meant to speed up the granting of
exceptions when the Board is not the primary
supervisor. The Board will consider other re­
quests for exceptions.
N o m in a t io n s
C o u n c il

S e l e c t io n o f H o m e S ta te s
F o r e ig n B a n k s

by

The Federal Reserve Board on June 5, 1981,
released a list of foreign banks operating in the
United States and their home states. The list is
available on request to Publications Services,
Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Under the International Banking Act of 1978
and the Board’s regulations, a foreign bank may
expand its deposit-taking operations in a single
state designated as its home state. Foreign banks
with either a full-service branch or a subsidiary
bank in the United States were required either
to select a home state by March 31, 1981, or to
have a home state designated for them by the
Board.



u l in g

to

C o n s u m e r A d v is o r y

The Federal Reserve Board has announced that
it is seeking nominations of qualified individuals
for nine appointments to its Consumer Advisory
Council.
Nominations should be submitted in writing to
Dolores S. Smith, Assistant Director, Division of
Consumer and Community Affairs, Board of
Governors of the Federal Reserve System,
Washington, D.C. 20551, and must be received
no later than August 17, 1981. Nominations
should include the name, address, and telephone
number of the nominee, past and present posi­
tions held, and special knowledge, interests, or
experience relating to consumer matters.
The Consumer Advisory Council was estab­
lished by the Congress in 1976, at the suggestion
of the Board, to advise the Board on the exercise

49 6

F e d e r a l R e s e r v e B u lle tin □ J u n e 1981

of its duties under the Consumer Credit Protec­
tion Act and on other consumer-related matters.
Generally, the Council meets four times a year
for about a day and a half.

R e g u l a t io n T: A m e n d m e n t
The Federal Reserve Board has deleted a section
of its Regulation T (Credit by Brokers and Deal­
ers) that permits foreign currency to be treated as
a deposit in a securities margin account, effective
July 13, 1981.
The Board acted after considering comment on
a proposal issued in December, which it adopted
without change.
The Board’s attention had been drawn to the
fact that the language of this section (220.6
paragraph (j)) might be interpreted as allowing
the speculative holding of foreign currency in a
margin account. Deletion of the section is intend­
ed to make it clear that this is not permissible,
and that any transactions in foreign currency
should be effected in accounts insulated from
securities credit transactions.

A n n u a l R e p o r t : P u b l ic a t io n
The Sixty-Seventh Annual Report of the Board
of Governors of the Federal Reserve System,
covering operations for the calendar year 1980, is
available for distribution. Copies may be ob­
tained upon request to Publications Services,
Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.




Ch a n g e s

in

B o a r d S taff

The Federal Reserve Board has announced the
following appointment.
Michael Bradfield of Washington, D.C., as
General Counsel, effective July 1. He succeeds
Neal L. Petersen who resigned effective May 29,
1981. Mr. Bradfield, a partner in Cole Corette &
Bradfield, Washington, D.C., was previously
with the Treasury Department. A graduate of
Union College, Mr. Bradfield received a law
degree and a masters degree from Columbia
University and also attended St. Andrews Uni­
versity in Scotland and the University of Com­
parative Law in Luxembourg.
The Board has also announced the resignation
of George B. Henry, Associate Director, Divi­
sion of International Finance, effective June 30,
1981.

S ystem M e m b e r s h ip :
A d m is s io n o f S tate B a n k s
The following banks were admitted to member­
ship in the Federal Reserve System during the
period April 11 through June 10, 1981:
Colorado
D en ver.................... Fidelity Bank of Denver
Virginia
Augusta C ou n ty..........First Virginia Bank of
Augusta
Colonial B e a c h .......... Bank of Westmoreland
Goochland........................Bank of Goochland
Powhatan............................Bank of Powhatan
Wyoming
Baggs....................................Valley State Bank

497

Record of Policy Actions of the
Federal Open Market Committee
Meeting Held on March 31, 1981
1. Domestic Policy Directive
The information reviewed at this
meeting suggested that real gross
national product expanded substan­
tially in the first quarter of 1981, but
there were signs of a slowing of the
expansion in economic activity dur­
ing the quarter. Average prices, as
measured by the fixed-weight price
index for gross domestic business
product, continued to rise rapidly.
The dollar value of retail sales
advanced appreciably further over
the first two months of the year,
following a sizable gain over the
second half of 1980. Increases in the
value of sales in the two-month peri­
od were fairly widespread and were
especially strong in the automotive
group, at general merchandise
stores, and at gasoline service sta­
tions. Unit sales of new domestic
automobiles surged in late February
and remained strong through the
first 20 days of March, largely be­
cause of price concessions.
The index of industrial production
declined an estimated 0.5 percent in
February, after three months of di­
minishing gains. Capacity utilization
in manufacturing edged up in Janu­
ary but declined 0.7 percentage point
in February to 79.3 percent.
Private housing starts dropped in
February to an annual rate of about
1.2 million units; during the preced­
ing six months housing starts had
been in a range of 1.4 million to 1.6
million units. Newly issued permits
for residential construction edged
down in January and declined sharp­
ly in February. Combined sales of
new and existing homes fell in Janu­



ary for the fourth consecutive
month.
Nonfarm payroll employment
changed little in February following
a large increase in January, and the
unemployment rate, at 7.3 percent,
was essentially unchanged. Employ­
ment continued to expand in trade
and service establishments but de­
clined sharply in construction. In
manufacturing, employment growth
slowed further and the average
workweek fell 0.6 hour to 39.8
hours.
The Department of Commerce
survey of business spending plans
taken in January and February sug­
gested that current-dollar expendi­
tures for plant and equipment would
rise about WA percent in 1981, fol­
lowing an expansion of about 9lA
percent in 1980. The survey results
implied that constant-dollar outlays
would change little in 1981 from their
level in 1980.
Producer prices of finished goods
rose at an annual rate of about WA
percent in January and February,
close to the average rate in the sec­
ond half of 1980. The rise in the
consumer price index slowed in Jan­
uary to an annual rate of about S3A
percent but accelerated in February
to a rate of IIV2 percent. Over the
two-month period food prices rose
only slightly on balance, and the rise
in homeownership costs slowed sub­
stantially. But prices of energy items
surged, reflecting in large part the
effects of decontrol of oil prices. The
rise in the index of average hourly
earnings of private nonfarm produc­
tion workers was little changed from
the pace recorded during 1980.
In foreign exchange markets the

498

Federal R eserve Bulletin □ June 1981

tr a d e -w e ig h te d

v a lu e

of

th e

d o lla r

g r o w th o f th e n a r r o w ly d e fin e d m o n ­

a g a in s t m a jo r fo r e ig n c u r r e n c ie s r o s e

e ta r y a g g r e g a te s (M - lA

fu rth e r

a fter

fo llo w in g

th e

C o m m it t e e ’s

e s tim a te d

m e e tin g in e a r ly F e b r u a r y t o a p e a k

e f f e c t s o f s h ift s in t o N O W

a c co u n ts,

a t m id m o n th . S u b s e q u e n t ly , th e d o l­

had

sh o r t-r u n

la r d e c l i n e d

o b je c tiv e s s e t fo r th b y th e C o m m it­

on

b a la n c e ,

d e v e lo p e d

fo r

a n d M -1 B ),

th e

som ew h at

a d ju stm e n t

fr o m

th e

a s s h o r t-te r m in t e r e s t r a t e s in c o n t i ­

te e .

n en ta l E u r o p e a n

c o u n tr ie s r o s e

ap­

m a n d fo r r e s e r v e s c o n t r a c t e d in r e la ­

p r e c ia b ly ,

in

te r m s

tio n to th e s u p p ly o f r e s e r v e s b e in g

a n d r e la tiv e to in te r e s t r a te s o n d o l­

m a d e a v a ila b le th r o u g h o p e n m a r k e t

b o th

a b s o lu te

R e q u ir e d

la r -d e n o m in a te d a s s e t s . I n th e d a y s

o p e r a tio n s ,

im m e d ia t e ly

r o w in g s

p r e c e d in g th is m e e tin g

th e d o lla r tr a d e d a t r a te s s o m e w h a t

reserves

and

and

m em b er

d e c lin e d

to

th e

de­

bank

an

bor­

average

of

a b o u t $ 1 .2 b illio n in th e t h r e e s t a t e ­

a b o v e th e le v e l p r e v a ilin g a t th e tim e

m ent

o f th e la s t m e e tin g . T h e U .S . tr a d e

fr o m a n a v e r a g e o f a b o u t $ 1 .5 b illio n

w eek s

e n d in g

F ebruary

18

d e fic it in J a n u a r y a n d F e b r u a r y w a s

in

a t ia b o u t t h e a v e r a g e m o n t h l y r a t e o f

fe d e r a l fu n d s r a te fe ll to a n a v e r a g e

t h e fin a l q u a r t e r o f 1 9 8 0 . T h e v a lu e

o f about

o f im p o r t s r o s e

s u b s t a n t ia lly , in a s ­

e n d i n g F e b r u a r y 1 8 , f r o m a b o u t V I Va

th e

p r e c e d in g

th r e e

w eek s.

1 5 3/4 p e r c e n t

in

th e

The
w eek

s o c ia t io n w it h th e e x p a n s io n in U .S .

p e r c e n t a t th e tim e o f th e C o m m it­

e c o n o m ic a c tiv it y , a n d th e v a lu e o f

t e e ’s m e e t in g in e a r ly F e b r u a r y ; a n d

e x p o r ts a ls o r o s e m a r k e d ly .

it

A t its
th e

m e e tin g

C o m m itte e

fu r th e r

in

su b seq u en t

F ebruary

2 -3 ,

d a y s to a r o u n d th e lo w e r e n d o f th e

had

d e c id e d

th a t

range

o p e n m a r k e t o p e r a t io n s in t h e p e r io d
o f reserve

g a te s

a s s o c ia te d

w ith

g r o w th

M -l A

and

over

th e

M -1 B

aggre­
in

of

15 t o

2 0 p e r c e n t th a t h a d

b e e n s p e c if ie d b y th e C o m m itte e .

u n til th is m e e t in g s h o u ld b e d ir e c t e d
to w a r d e x p a n s io n

fr o m

d e c lin e d

on

In a te le p h o n e c o n fe r e n c e o n F e b ­
ruary

2 4 , th e

accept

som e

C o m m itte e

agreed

to

s h o r t f a ll in

g r o w th

of

p e r io d

M -l A a n d M -1 B fr o m th e r a te s s p e c ­

D e c e m b e r to M a rch at a n n u a l

ifie d in th e d ir e c t iv e a d o p t e d o n F e b ­

r a te s o f 5 t o 6 p e r c e n t a n d in M - 2 o f

ruary

a b o u t 8 p e r c e n t , a b s tr a c tin g fr o m th e

r e la tiv e ly s tr o n g g r o w th o f M -2 a n d

im p a c t o f f lo w s in t o N O W
T h ose

r a te s

g r o w th

of

w ere

M -1 A ,

a c co u n ts.

a s s o c ia te d
M -1 B ,

3,

in

lig h t

M -3 a n d th e

of

in d ic a tio n s

of

s u b s ta n tia l e a s in g th a t

w ith

h a d o c c u r r e d in m o n e y m a r k e t c o n ­

M -2

d itio n s ,

and

as

as

o f u n c e r ta in tie s

about

fir s t q u a r t e r o f 1 9 8 1

h a v io r o f M - l . It w a s r e c o g n iz e d th a t

a t a n n u a l r a te s

th e

w e ll

fr o m th e fo u r th q u a r te r o f 1 9 8 0 to th e

in te r p r e ta tio n

o f a b o u t 2 p e r c e n t , 2 3/4 p e r c e n t , a n d

th e

7 p e r c e n t r e s p e c t i v e l y . I f it a p p e a r e d

row ed

d u r in g

C o m m it t e e ’s d e c is io n

th e

p e r io d

r e g u la r m e e t in g

b e fo r e

th e

next

th a t flu c tu a tio n s

in

th e fe d e r a l fu n d s r a te , ta k e n o v e r a

o p e r a tio n a l

p a th

reserves

o f th e

fo r

be­

nonbor­

c o n s is t e n t w ith

th e

m ig h t le a d

s o m e fu r t h e r e a s in g in m o n e y

to

m ar­

k e t c o n d it io n s , d e p e n d in g u p o n r a te s

p e r io d o f t im e , w it h in a r a n g e o f 15

of

to 2 0 p e r c e n t w e r e lik e ly to b e in c o n ­

g a te s. In fa c t, m e m b er b a n k b o r r o w ­

g r o w th

in

th e

m o n eta ry

aggre­

s is te n t w ith th e m o n e ta r y a n d r e la t­

in g s d e c lin e d in e a r ly M a r c h , a n d th e

ed

fe d e r a l fu n d s r a te e a s e d fo r a w h ile

reserve

D o m e s tic

p a th s,

th e

M anager

fo r

O p e r a tio n s w a s p r o m p tly

in

m id -M a r c h

to

about

13 p e r c e n t .

t o n o t if y th e C h a ir m a n , w h o w o u ld

S u b s e q u e n tly ,

th en

f o r r e s e r v e s s t r e n g t h e n e d , a n d in t h e

d e c id e

c a lle d

fo r

w h e th e r

th e

s u p p le m e n ta r y

s itu a tio n
in s tr u c ­

in t h e in t e r m e e t in g

im m e d ia te ly

dem ands

p r e c e d in g

th is

m e e tin g , th e fe d e r a l fu n d s r a te w a s

t io n s fr o m th e C o m m itte e .
E a r ly

days

how ever,

p e r io d ,

in c o m in g d a ta fo r th e la tt e r p a r t o f

a r o u n d 15 p e r c e n t .
M -l A

a n d M -1 B , a d ju ste d fo r th e

J a n u a ry a n d th e e a r ly w e e k s o f F e b ­

e s tim a te d e f fe c ts o f s h ifts in to N O W

ruary

a c co u n ts,




in d ic a te d

th a t

a

s h o r tfa ll

in

d e c lin e d

som ew h at

in

R ecord o f Policy Actions o f the FOM C

F e b r u a r y a n d c h a n g e d lit tle o n b a l­

m itm e n ts fo r fix e d - r a t e lo a n s a t s a v ­

a n c e o v e r t h e fir s t t w o m o n t h s o f t h e

in g s a n d lo a n a s s o c ia t io n s r o s e a b o u t

year.

4 0 b a s is p o in ts to

The

panded
th e

narrow er

a g g r eg a tes

s u b s ta n tia lly ,

ex­

how ever,

fir s t h a l f o f M a r c h .

G r o w th

in

1 5 .4 0 p e r c e n t .

T h e s ta ff p r o je c tio n s p r e s e n t e d a t

in

th is m e e t in g s u g g e s t e d th a t e c o n o m ­

M -2 p ic k e d u p to a n a n n u a l r a te o f

ic

about m

s u b s t a n t ia lly in th e fir s t q u a r t e r , h a d

p e r c e n t in F e b r u a r y f r o m

a c tiv ity ,

5 3A p e r c e n t i n J a n u a r y ; a n d i t a p p a r ­

been

e n tly

and

a c c e le r a te d

c o n s id e r a b ly

M arch, b eca u se

o f la r g e

m on ey

m u tu a l

som e

m arket

s tr e n g th e n in g

in

s m a ll-d e n o m in a tio n

flo w s

in t o

fu n d s

and

th e

tim e

in g s d e p o s it s in a d d itio n

in

to ta l
and

to

of

sav­

th e

ex­

p a n s io n in th e n a r r o w e r a g g r e g a t e s .
E x p a n s io n in t o t a l c r e d it o u t s t a n d ­
in g

w h ile

lo s in g its u p w a r d
th a t

real

G N P

e x p a n d in g
m o m e n tu m ,

w as

lik e ly

to

c h a n g e little o v e r th e p e r io d a h e a d .
S u c h a s lu g g is h p e r fo r m a n c e o f th e
e c o n o m y w o u ld b e a c c o m p a n ie d b y
a

s m a ll

m ent

in c r e a s e

r a te .

in

The

th e

r is e

u n e m p lo y ­

in

th e

fix e d -

w e ig h t p r ic e in d e x fo r g r o s s d o m e s ­
tic

b u s in e s s

prod u ct w as

p r o je c te d

banks

t o r e m a in r a p id , a lth o u g h s o m e w h a t

s u b s t a n t ia lly in F e b r u a r y to

l e s s s o in t h e la t t e r p a r t o f t h e y e a r

at

U .S .

s lo w e d

even

c o m m e r c ia l

a n a n n u a l r a t e o f 8 lA p e r c e n t , a b o u t

th a n in t h e fir s t h a lf .

o n e - h a lf th e p a c e r e c o r d e d in J a n u ­

I n t h e C o m m i t t e e ’s d i s c u s s i o n

a r y . T h e d e c e le r a tio n r e fle c te d a r e ­

th e e c o n o m ic s itu a tio n a n d o u t lo o k ,

du ced

pace

m em b ers

tio n s

and

of

in v e s tm e n t

w ea k n ess

a c q u is i­

in

lo a n s ,

p a r tic u la r ly s e c u r it y lo a n s a n d b u s i­

and

n ess

str ess

lo a n s .

The

m o d e r a tio n

in

n o ted

str e n g th

in

w in te r ,
th e

th e

a c tiv ity
and

of

u n a n tic ip a te d
in

th e y

d if fic u ltie s

th e

a u tu m n

c o n tin u e d

to

o f fo r e c a s tin g

g r o w th o f b u s in e s s lo a n s a t c o m m e r ­

o u t p u t a n d p r ic e s in th e c u r r e n t e n v i ­

c ia l

by

r o n m en t. A n u m b e r o f m e m b e r s e x ­

o f­

p r e s s e d t h e v i e w th a t lit t le c h a n g e in

banks

w as

ste p p e d -u p

a c c o m p a n ie d

is s u a n c e

o f p u b lic ly

fe r e d b o n d s a n d c o n tin u e d h e a v y n e t

real G N P

is su a n c e

w as

of

c o m m e r c ia l

n o n fin a n c ia l
tio n ,

pap er

c o r p o r a tio n s .

U .S .

nonbank

In

by

a d d i­

r e s id e n ts

ex­

an

o v e r th e b a la n c e
im p r o b a b le

o f 1981

d e v e lo p m e n t;

a n d o f t h e s e , a ll b u t o n e t h o u g h t th a t
a

str o n g e r

p e r fo r m a n c e

w as

m ore

p a n d e d th e ir o u t s ta n d in g lo a n s fr o m

lik e ly th a n a w e a k e r o n e . W h ile n o

fo r e ig n b r a n c h e s o f U .S . b a n k s .

m em b er

S h o rt-te r m
d e c lin e d

m arket

in te r e s t

s u b s ta n tia lly

on

r a te s

b a la n c e

th e

v o ic e d

d is a g r e e m e n t

s ta ff p r o je c tio n

o f a r a p id

r is e

in

o v e r a ll p r ic e s ,

w as

v a te s h o r t-te r m m a r k e ts , y ie ld s fe ll 2

p e c t a t io n s m ig h t b e m o d e r a t in g a b it

t o 3 Vi p e r c e n t a g e p o in t s ; in th e T r e a ­

a n d a ls o th a t to w a r d th e e n d o f th e

b ill

m a r k e t,

y ie ld s

w h a t l e s s , a b o u t 3A t o

fe ll

som e­

2 p ercen ta g e

p o in t s , a s th e T r e a s u r y r a is e d la r g e
a m o u n ts o f n e w
a u c tio n s

and

m o n e y th r o u g h b ill

heavy

season al

is s u ­

th a t in fla tio n a r y

it

o v e r t h e in t e r m e e t in g in t e r v a l: in p r i­

su ry

su g g e ste d

w ith

o f c o n tin u a tio n
ex­

y e a r th e r is e in th e c o n s u m e r p r ic e
in d e x m ig h t b e le s s e n in g .
A t its

m e e tin g

on

F ebruary

2 -3 ,

th e C o m m itte e h a d a d o p te d th e f o l­
lo w in g r a n g e s fo r g r o w th o f th e m o n ­

a n c e o f c a s h m a n a g e m e n t b ills . M o s t

e ta r y

lo n g -te r m

fr o m th e fo u r th q u a r te r o f 1 9 8 0 to th e

i n t e r e s t r a t e s r o s e Va t o V i

p ercen ta g e

p o in t

m e e tin g

p e r io d .

charged

by

sh o r t-te r m

d u r in g
The

th e

c o m m e r c ia l
b u s in e s s

d u c e d in s t e p s t o

in te r ­

p r im e
banks

lo a n s

w as

r a te

fo u r th

q u a rter

of

over

th e

1981:

p e r io d

M -l A

and

M -1 B , 3 to 5V i p e r c e n t a n d V /i to 6

on

percent

re­

m ent

fo r

N O W

a c c o u n ts ; M -2 , 6 to 9 p e r c e n t;

1 7 Vz p e r c e n t f r o m

th e le v e l o f 19V i to

a g g reg a tes

20 p ercen t p re­

v a ilin g a t th e tim e o f th e la s t C o m ­

and

r e s p e c tiv e ly ,

M -3 ,

th e

6 V2

e ffe c ts

to

W

a fte r

a d ju st­

o f flo w s

2

p ercen t.

in to

The

a s s o c ia te d r a n g e fo r g r o w th o f c o m ­

m o r tg a g e

m e r c ia l b a n k c r e d it w a s 6 to 9 p e r ­

m a r k e ts, a v e r a g e r a te s o n n e w c o m ­

c e n t. It w a s u n d e r s to o d th a t th e d is ­

m itte e




m e e tin g .

In

hom e

499

500

Federal R eserve Bulletin □ June 1981

to r tin g

e ffe c ts

a c c o u n ts

of

w o u ld

s h ift s

in to

change

N O W

d u r in g

th e

gen era l fo c u se d
is su e s

of

on

th e

th e

in t e r r e la te d

d e s ir a b le

sp eed

of

y e a r a n d th a t o th e r sh o r t-r u n fa c to r s

g r o w th o f n a r r o w ly d e fin e d m o n e y ,

m ig h t

c o n s is te n t

cau se

c o n s id e r a b le

v a r ia tio n

w ith

th e

range

fo r

th e

in a n n u a l r a t e s o f g r o w t h f r o m

one

y e a r , a n d th e w e ig h t th a t s h o u ld b e

m o n th

one

g iv e n to M -2 . I n th e in t e r e s t o f s im ­

to

th e

next

and

fr o m

p lific a tio n ,

q u a rter to th e n e x t.
I n t h e C o m m i t t e e ’s d i s c u s s i o n
p o lic y

fo r

th e

a h e a d , it w a s
th e

n a r r o w ly

p e r io d

of

im m e d ia te ly

n o ted

th a t g r o w th

d e fin e d

m o n eta ry

of
ag­

g r e g a te s (a d ju ste d fo r th e e ffe c ts o f
NO W
fir s t

a c co u n ts) w a s
th r e e

s lo w

m o n th s

of

o v e r th e

1981

as

a

w h o le , d e s p ite th e s tr e n g th th a t h a d
d e v e lo p e d
p o in te d

in

e a r ly

out

th a t

M arch.

th e

It

s lo w

w as

g r o w th

th e

C o m m itte e

to fo c u s o n M -lB

d e c id e d

a s th e m e a su r e o f

tr a n s a c tio n b a la n c e s a n d to o m it a n y
r e f e r e n c e t o M - l A in its s t a t e m e n t o f
m o n eta ry

o b je c tiv e s

fo r

th e

sh ort

ru n . A fte r a d ju stm e n t fo r th e e ffe c ts
o f s h ifts in t o N O W

a c c o u n ts , g r o w th

in th e t w o w o u ld b e s im ila r .
C o n c e r n in g o p e r a t io n s in th e p e r i­
o d b e f o r e t h e n e x t r e g u la r m e e t in g ,
s c h e d u le d

fo r

m id -M a y ,

th e

v ie w

d u r in g t h e fir s t q u a r t e r c o u ld b e w e l ­

w as exp ressed

com ed

m o n e y c o u ld w e ll b e e x p a n d in g s u b ­

as

an

o ffse t

to

th e

r a p id

th a t th e d e m a n d fo r

g r o w t h in th e fo u r t h q u a r t e r o f 1 9 8 0 .

s t a n t ia lly b u t th a t it w o u ld b e a p p r o ­

G r o w th

p r ia te

o f M -2 , in

c o n tr a st, a p p a r­

e n t ly h a d b e e n fa ir ly r a p id ; it s n o n ­
tr a n s a c tio n

com pon en t

had

been

to

e s ta b lis h

a

reserve

p a th

c o n s is t e n t w ith g r o w th a t a r e la tiv e ly
m o d e s t p a c e . It w a s a ls o
th a t

e y m a r k e t m u tu a l fu n d s , w h ic h h a d

a d j u s t e d M -1 B in th e e a r ly m o n t h s o f

m o r e th a n o f f s e t w e a k n e s s in s m a ll-

th e y e a r m ig h t b e a m is le a d in g in d i­

d e n o m in a tio n

c a to r o f th e b e h a v io r o f tr a n s a c tio n

tim e

and

s a v in g s

de­

th e

w ea k n ess

in

su g g e ste d

b u o y e d b y r e c o r d e x p a n s io n in m o n ­

g r o w th

of

b a la n c e s , m a in ly b e c a u s e o f th e r a p ­

p o s its .
A s ta ff a n a ly s is s u g g e s te d th a t th e

id g r o w t h

o f m on ey

m a r k e t m u tu a l

s lu g g is h g r o w t h in t h e n a r r o w ly d e ­

fu n d s ; s o m e p a r t o f th e la r g e f lo w s

fin e d m o n e y s u p p ly in th e fir s t q u a r ­

in to

te r , a n d

garded

th e

e x tr a o r d in a r y

in c r e a se

in t h e v e l o c i t y o f m o n e y , m ig h t h a v e

th o se

fu n d s

as

m ig h t

a ls o

tr a n s a c tio n

be

re­

b a la n c e s .

T h u s , it w a s a r g u e d t h a t s o m e g r e a t ­

b e e n r e la te d t o th e h ig h in t e r e s t r a te s

e r w e ig h t th a n p r e v io u s ly s h o u ld b e

in t h e f o u r t h q u a r t e r o f 1 9 8 0 a n d t o

g iv e n t o th e b e h a v io r o f M -2 in a p ­

th e

p r a is in g

y e a r-en d

a c c o u n ts
w h ic h

in tr o d u c tio n

on

a

to g e th e r

in te n s iv e

of N O W

n a t io n w id e
m ig h t

have

r e c o n s id e r a tio n

b a s is ,
le d

of

to

ca sh

th e

b e h a v io r o f th e

m one­

ta r y a g g r e g a te s . O n th e o th e r h a n d ,
it w a s o b s e r v e d th a t t h e w e ig h t g iv e n
to M -2

s h o u ld n o t b e in c r e a s e d b e ­

m a n a g e m e n t te c h n iq u e s . L o o k in g to

c a u s e th e r a n g e s fo r 1981 a d o p te d at

th e

th e

secon d

q u a rter,

a n o th e r

sh arp

C o m m i t t e e ’s

m e e tin g

in

e a r ly

in c r e a s e in t h e v e l o c i t y o f n a r r o w ly

F e b r u a r y m ig h t n o t a llo w

d e fin e d

ly fo r th e e x p e c t a t io n th a t g r o w th o f

and

m on ey

dem ands

app eared
fo r

u n lik e ly ,

tr a n s a c tio n

b a l­

th e b r o a d e r a g g r e g a t e in 1 9 8 1 w o u ld

a n c e s w e r e e x p e c te d to e x p a n d su b ­

te n d

s ta n tia lly in a s s o c i a t io n w it h g r o w t h

M -1 B .

o f n o m in a l G N P . It w a s a n t ic ip a te d
th a t th e

n o n tr a n sa c tio n

com pon en t

o f M -2 w o u ld r e m a in s tr o n g a n d th a t

s u ffic ie n t­

to

in c r e a s e

r e la tiv e

to

th a t o f

W ith r e s p e c t t o t h e fe d e r a l fu n d s
r a t e , it w a s
m itte e

str esse d

s p e c ifie d

th a t th e

an

C om ­

in t e r m e e tin g

t h e p ic k u p in th e d e m a n d f o r t r a n s ­

r a n g e fo r flu c t u a tio n s o v e r a p e r io d

a c tio n b a la n c e s w o u ld c o n tr ib u te to

o f tim e t o p r o v id e a m e c h a n is m

fo r

r a p id g r o w t h o f M - 2 .

in itia tin g

be­

In c o n s id e r in g o b j e c tiv e s fo r m o n ­

tim e ly

c o n s u lta tio n s

t w e e n r e g u la r ly s c h e d u le d
w henever

te r ,

tio n s w ith in th e s p e c if ie d r a n g e w e r e




m em b ers

o f th e

C o m m itte e

in

it

app eared

th a t

m e e tin g s

e ta r y g r o w th o v e r th e s e c o n d q u a r­

flu c tu a ­

R ecord o f Policy Actions o f the FOMC

p r o v in g to

be

o b je c tiv e s

fo r

serv e

and

T h u s,

th e

in c o n s is te n t w ith
th e

m o n eta ry
lim its

in d ic a tiv e

b e h a v io r

of

th e
re­

a g g r eg a tes.

o f th e

th e

of

range

c o n d itio n s

w ere
under

w h ic h th e C o m m itte e w o u ld w is h to
c o n s u lt

to

r e e x a m in e

its

sh o r t-r u n

o b je c tiv e s a n d w e r e n o t in te n d e d a s
b in d in g c o n s t r a in t s o n S y s t e m
a tio n s

p e n d in g

su ch

oper­

c o n s u lta tio n s .

F o r th e c o m in g in te r m e e tin g p e r io d ,
v a r io u s p r o p o s a ls w e r e m a d e fo r th e
r a n g e , a ll o f t h e m

m o r e o r le s s c e n ­

te r e d o n th e r a te o f 15 p e r c e n t th a t
had

p r e v a ile d

in

th e

m arket

m ost

r e c e n tly .
A t th e

c o n c lu s io n

o f th e

d is c u s ­

s io n , th e C o m m itte e d e c id e d to s e e k
b e h a v io r o f r e s e r v e a g g r e g a te s a s s o ­
c ia te d w ith g r o w th o f M - lB
p e r io d

fr o m

M arch

to

o v e r th e

June

at

an

a n n u a l r a te o f 5V i p e r c e n t o r s o m e ­
w hat

le s s ,

a fte r

a llo w a n c e

im p a c t o f flo w s in t o N O W

fo r

th e

a c co u n ts,

a n d g r o w th in M -2 a t a n a n n u a l r a te
o f a b o u t 1 0 J/2 p e r c e n t . I n e v a l u a t i n g
th e

b e h a v io r

of

th e

a g g reg a tes,

it

w a s a g r e e d th a t g r e a te r w e ig h t th a n
b e fo r e w o u ld b e g iv e n to th e b e h a v ­
io r o f M -2 . T h e m e m b e r s r e c o g n i z e d
th a t

s h ifts

in t o

N O W

a c c o u n ts

w o u ld c o n tin u e to d is to r t m e a s u r e d
g r o w t h in M - l B
ex te n t

and

w o u ld

have

to a n u n p r e d ic t a b le

th a t

o p e r a tio n a l

p a th s

d e v e lo p e d

in th e

o f th o se

d is to r ­

to b e

lig h t o f e v a lu a t io n

t i o n s . I f it a p p e a r e d d u r in g t h e p e r i­
o d b e fo r e th e n e x t s c h e d u le d
in g

th a t

flu c t u a tio n s

fu n d s

r a te ,

tim e ,

w ith in

ta k en
a

p ercent w ere
te n t w ith

in

over

a

range

lik e ly

th e

to

th e m o n e ta r y

m e e t­
fe d e r a l

p e r io d

of

of

13

18

be

in c o n s is ­

and

to

r e la te d

r e s e r v e p a th s, th e M a n a g e r fo r D o ­
m e s tic

O p e r a tio n s w a s p r o m p tly to

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th en
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tio n s fr o m th e C o m m itte e .
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R eserv e B ank o f N e w

th e

Federal

Y ork:

T h e i n f o r m a t i o n r e v i e w e d a t t h is m e e t ­
in g s u g g e s t s t h a t r e a l G N P e x p a n d e d
s u b s t a n t i a l l y in t h e fir s t q u a r t e r o f 1 9 8 1 ,




b u t th e r e w e r e s ig n s o f a s lo w in g o f th e
e x p a n s i o n in e c o n o m i c a c t i v i t y d u r in g
th e q u a rter ; p r ic e s o n th e a v e r a g e c o n tin ­
u e d t o r i s e r a p id l y . W h i l e r e t a il s a l e s
a d v a n c e d a p p r e c i a b l y o v e r t h e fir s t t w o
m o n t h s o f t h e y e a r , i n d u s t r ia l p r o d u c t i o n
d e c l i n e d in F e b r u a r y a f t e r t h r e e m o n t h s
o f d i m in is h in g g a i n s , a n d h o u s i n g s t a r t s
d r o p p e d fr o m th e m o d e r a te p a c e th a t
h a d p r e v a i l e d d u r in g t h e p r e c e d i n g s i x
m o n th s . N o n fa r m p a y r o ll e m p lo y m e n t
c h a n g e d l i t t l e in F e b r u a r y f o l l o w i n g a
la r g e i n c r e a s e in J a n u a r y ; t h e u n e m p l o y ­
m e n t r a te , a t 7 .3 p e r c e n t , w a s e s s e n t ia ll y
u n c h a n g e d . O v e r t h e fir s t t w o m o n t h s o f
1 9 8 1 , t h e r i s e in t h e i n d e x o f a v e r a g e
h o u r ly e a r n in g s w a s lit t l e c h a n g e d f r o m
t h e r a p id p a c e r e c o r d e d d u r in g 1 9 8 0 .
T h e w e ig h te d a v e r a g e v a lu e o f th e
d o ll a r a g a i n s t m a j o r f o r e i g n c u r r e n c i e s
r o s e f u r t h e r f o l l o w i n g t h e C o m m i t t e e ’s
m e e t i n g in e a r l y F e b r u a r y t o a p e a k a t
m id m o n t h b u t s u b s e q u e n t l y d e c l i n e d
s o m e w h a t o n b a la n c e . S h o r t-te r m in te r ­
e s t r a t e s in c o n t i n e n t a l E u r o p e a n c o u n ­
t r ie s h a v e r i s e n a p p r e c i a b l y s i n c e m id F e b r u a r y , a b s o l u t e l y a n d in r e l a t i o n t o
in te r e s t r a te s o n d o lla r - d e n o m in a te d a s ­
s e t s . T h e U . S . t r a d e d e f i c i t in J a n u a r y
an d F e b r u a r y w a s a t a b o u t th e a v e r a g e
m o n t h l y r a t e o f t h e fin a l q u a r t e r o f 1 9 8 0 .
M -l A a n d M -1 B , a d ju ste d fo r th e e s t i­
m a t e d e f f e c t s o f s h i f t s in t o N O W a c ­
c o u n t s , c h a n g e d l i t t l e o v e r t h e fir s t t w o
m o n th s o f th e y e a r b u t e x p a n d e d s u b ­
s t a n t i a lly in t h e fir s t h a l f o f M a r c h .
G r o w t h in M - 2 a c c e l e r a t e d in t h e c o u r s e
o f t h e q u a r t e r , a n d p a r t ia l d a t a s u g g e s t
c o n s i d e r a b l e s t r e n g t h in M a r c h , in p a r t
b e c a u s e o f la r g e f l o w s in t o m o n e y m a r ­
k e t m u tu a l fu n d s . O n b a la n c e s in c e e a r ly
F e b r u a r y , sh o r t-te r m
m a r k e t in t e r e s t
r a te s h a v e fa lle n s u b s ta n t ia lly w h ile
lo n g e r - t e r m m a r k e t r a t e s h a v e r i s e n
so m e w h a t.
T h e F e d e r a l O p e n M a rk et C o m m itte e
s e e k s t o f o s t e r m o n e t a r y a n d f in a n c ia l
c o n d i t i o n s t h a t w i l l h e l p t o r e d u c e in f la ­
tio n , e n c o u r a g e e c o n o m ic r e c o v e r y , a n d
c o n tr ib u te to a s u s t a in a b le p a tte r n o f
i n t e r n a t io n a l t r a n s a c t i o n s . A t it s m e e t i n g
in e a r l y F e b r u a r y , t h e C o m m i t t e e a g r e e d
th a t t h e s e o b j e c t iv e s w o u ld b e fu r th e r e d
b y g r o w t h o f M - l A , M - 1 B , M - 2 , a n d M -3
fr o m th e fo u r th q u a r te r o f 1980 to th e
fo u r th q u a r te r o f 1981 w ith in r a n g e s o f 3
to 5Vi p e r c e n t , V A to 6 p e r c e n t , 6 to 9
p e r c e n t , a n d 6 Vi t o 9 V i p e r c e n t r e s p e c ­
t i v e l y , a b s t r a c t i n g f r o m t h e im p a c t o f
in t r o d u c t i o n o f N O W a c c o u n t s o n a n a ­
tio n w id e b a s is . T h e a s s o c ia te d r a n g e fo r
b a n k c r e d it w a s 6 to 9 p e r c e n t. T h e s e
r a n g e s w ill b e r e c o n s id e r e d a s c o n d it io n s
w a r ra n t.
In th e sh o r t ru n th e C o m m itte e s e e k s
b e h a v io r o f r e s e r v e a g g r e g a t e s c o n s i s ­
t e n t w i t h g r o w t h in M - l B f r o m M a r c h t o

501

Federal R eserve Bulletin □ June 1981

J u n e a t a n a n n u a l r a te o f 5V i p e r c e n t o r
s o m e w h a t l e s s , a fte r a llo w a n c e fo r th e
im p a c t o f f l o w s i n t o N O W a c c o u n t s , a n d
g r o w t h in M - 2 a t a n a n n u a l r a t e o f a b o u t
IOV 2 p e r c e n t . I t i s r e c o g n i z e d t h a t s h if t s
in t o N O W a c c o u n t s w i l l c o n t i n u e t o d i s ­
t o r t m e a s u r e d g r o w t h in M - 1 B t o a n
u n p r e d ic ta b le e x t e n t , a n d o p e r a tio n a l r e ­
s e r v e p a t h s w i l l b e d e v e l o p e d in t h e lig h t
o f e v a l u a t i o n o f t h o s e d i s t o r t i o n s . I f it
a p p e a r s d u r in g t h e p e r i o d b e f o r e t h e n e x t
m e e t i n g t h a t f l u c t u a t i o n s in t h e f e d e r a l
fu n d s r a te , ta k e n o v e r a p e r io d o f tim e ,
w it h in a r a n g e o f 13 t o 18 p e r c e n t a r e
lik e ly to b e in c o n s is t e n t w ith th e m o n e ­
ta r y a n d r e l a t e d r e s e r v e p a t h s , t h e M a n ­
a g e r f o r D o m e s t i c O p e r a t i o n s is p r o m p t ­
l y t o n o t i f y t h e C h a ir m a n , w h o w i l l t h e n
d e c id e w h e th e r th e s itu a tio n c a lls fo r
s u p p le m e n ta r y
in s tr u c tio n s fr o m
th e
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a r o u n d th e m id p o in t o f th e V h to 6
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W h ile th e le v e l o f M -1 B

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a te d m a r k e d ly in A p r il t o a n a n n u a l

th e b r ie f p e r io d b e f o r e th e n e x t r e g u ­

r a te o f a b o u t 14 p e r c e n t. H o w e v e r ,

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c o n tin u e to

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M a y o .)

o f th e

r e c e n t p e r fo r m a n c e o f th e m o n e ta r y
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a g a in s t t h is a c t io n : N o n e . A b s e n t :
M e s s r s . P a r t e e a n d W a llic h . (M r .
W in n v o t e d a s a n a lt e r n a t e m e m b e r .)

o p e r a tio n s ,

s p e c ia l n o te o f

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d e v e lo p ­

a m e n d m e n ts

a s a c h a n g e in p o l i c y

o r ie n ta tio n .
A s

a d o p te d

in

D ecem b er

1976,

a n d th e p r o c e d u r a l in s tr u c tio n s w ith

p a r a g r a p h I D a u th o r iz e d th e F e d e r a l

resp ect

R eserv e B an k o f N e w

to

fo r e ig n

currency

opera­

O pen

M ark et

Y o r k , fo r th e

t io n s in th e f o r m s in w h ic h t h e y w e r e

S y ste m

c u r r e n tly o u t s ta n d in g .

m a in t a in a n o v e r a l l o p e n p o s i t i o n in

A c c o u n t,

to

a ll f o r e ig n c u r r e n c i e s n o t t o e x c e e d
V o t e s fo r t h e s e a c tio n s : M e s s r s .
V o l c k e r , B o e h n e , B o y k i n , C o r r ig a n ,
P a r te e , R ic e , S c h u ltz , S o lo m o n , M rs.
T e e t e r s , M e s s r s . W a l l i c h , a n d W in n .
V o t e s a g a in s t t h e s e a c tio n s : N o n e .




$ 1 .0 b illio n , u n le s s a la r g e r p o s it io n
w as

e x p r e s s ly

a u th o r iz e d

by

th e

C o m m itte e . T h e la n g u a g e s u g g e s te d
th a t

a u th o r iz a tio n s

of

la r g e r

p o s i­

503

504

Federal R eserve Bulletin □ June 1981

tio n s w o u ld

be

te m p o ra r y .

On

D e­

c e m b e r 19, 1 9 7 8 , th e C o m m itte e h a d
a u t h o r iz e d
b illio n

an

open

(sh o w n

as

p o s itio n

a fo o tn o te

of

$8

in

th e

a u th o r iz a tio n ), w h ic h

h a d r e m a in e d

in

d a te.

e ffe c t

s in c e

th a t

A t

th is

m e e tin g , th e C o m m itte e v o t e d to in ­
c o r p o r a t e th e lo n g - s t a n d in g lim it o f
$8

b illio n

in

th e

te x t

o f paragraph

ID .
P aragraph

3

s p e c ifie s

th a t

a ll

t r a n s a c t io n s in f o r e ig n c u r r e n c ie s b e
a t p r e v a ilin g m a r k e t r a t e s e x c e p t in
th e c a s e o f c e r ta in tr a n s a c tio n s w ith
fo r e ig n c e n tr a l b a n k s . A t th is m e e t ­
in g , th e C o m m it t e e v o t e d t o d e le t e a
r e f e r e n c e to a n e x c e p t io n th a t is n o
lo n g e r r e le v a n t a n d to a d d la n g u a g e
s p e llin g o u t c ir c u m s t a n c e s in w h ic h
tr a n s a c tio n s a t n o n m a r k e t r a te s m a y
b e u n d erta k en .
P a r a g r a p h 5 is c o n c e r n e d w it h th e
in v e s tm e n t
b a la n c e s

of

of

S y ste m

fo r e ig n

h o ld in g s

of

c u r r e n c ie s .

In

v i e w o f a p r o v i s i o n in t h e M o n e t a r y
C o n tr o l
S y ste m

A ct

of

1980

a llo w in g

th e

t o in v e s t in s e c u r it ie s is s u e d

o r fu lly

g u a ra n teed

e r n m e n ts,

th e

by

fo r e ig n

C o m m itte e

gov­

v o te d

to

lim it in v e s t m e n t o f f o r e ig n c u r r e n c y
h o ld in g s to liq u id fo r m s a n d g e n e r a l­
ly

to

in s tr u m e n ts

h a v in g

no

m ore

th a n 12 m o n t h s r e m a in in g t o m a tu r i­
ty .
The

C o m m itte e

a ls o

am en d ed

p a r a g r a p h 6 t o p r o v id e t h a t a ll o p e r a ­
tio n s p u r s u a n t to th e p r e c e d in g p a r a ­
g r a p h s b e r e p o r t e d p r o m p tly , r a th e r
th a n o n a d a ily b a s is , to th e F o r e ig n
C u r r e n c y S u b c o m m itte e .
A s am en d ed , paragraphs ID , 3, 5
a n d 6 r e a d a s fo llo w s :
1.
T h e F e d e r a l O p e n M a rk et C o m m it­
te e a u th o r iz e s a n d d ir e c ts th e F e d e r a l
R e se r v e B a n k o f N e w Y o r k , fo r S y s te m
O p en M a rk et A c c o u n t, to th e e x te n t
n e c e s s a r y t o c a r r y o u t t h e C o m m i t t e e ’s
fo r e ig n c u r r e n c y d ir e c tiv e a n d e x p r e s s
a u t h o r iz a tio n s b y th e C o m m itte e p u r s u ­
a n t t h e r e t o , a n d in c o n f o r m i t y w i t h s u c h
p r o c e d u r a l in s tr u c tio n s a s th e C o m m it­
t e e m a y i s s u e f r o m t im e t o t im e :

*

*

*

*

*

D . T o m a in t a in a n o v e r a l l o p e n p o ­
s i t i o n in a ll f o r e i g n c u r r e n c i e s n o t e x ­




c e e d in g $ 8 .0 b illio n . F o r th is p u r p o s e ,
t h e o v e r a l l o p e n p o s i t i o n in a ll f o r e i g n
c u r r e n c i e s is d e f i n e d a s t h e s u m ( d i s r e ­
g a r d in g s i g n s ) o f n e t p o s i t i o n s in i n d i v i d ­
u a l c u r r e n c i e s . T h e n e t p o s i t i o n in a
s in g le f o r e i g n c u r r e n c y i s d e f i n e d a s
h o l d i n g s o f b a l a n c e s in t h a t c u r r e n c y ,
p lu s o u t s t a n d i n g c o n t r a c t s f o r f u t u r e r e ­
c e i p t , m in u s o u t s t a n d i n g c o n t r a c t s f o r
fu tu r e d e liv e r y o f th a t c u r r e n c y , i . e . , a s
th e s u m o f t h e s e e le m e n t s w ith d u e r e ­
g a r d t o s ig n .
3.
A l l t r a n s a c t i o n s in f o r e i g n c u r r e n ­
c i e s u n d e r t a k e n u n d e r p a r a g r a p h 1 (A )
a b o v e s h a ll, u n le s s o t h e r w is e e x p r e s s ly
a u th o r iz e d b y th e C o m m itte e , b e a t p r e ­
v a ilin g m a r k e t r a t e s . F o r t h e p u r p o s e o f
p r o v id i n g a n i n v e s t m e n t r e t u r n o n S y s ­
te m h o ld in g s o f fo r e ig n c u r r e n c ie s , o r fo r
t h e p u r p o s e o f a d j u s t in g i n t e r e s t r a t e s
p a id o r r e c e i v e d in c o n n e c t i o n w i t h s w a p
d r a w in g s , tr a n s a c tio n s w ith fo r e ig n c e n ­
tr a l b a n k s m a y b e u n d e r t a k e n a t n o n m a rk et e x c h a n g e r a te s.
5 . F o r e i g n c u r r e n c y h o l d i n g s s h a ll b e
in v e s t e d in s o fa r a s p r a c tic a b le , c o n s id e r ­
in g n e e d s f o r m in im u m w o r k i n g b a l ­
a n c e s . S u c h i n v e s t m e n t s s h a ll b e in l i q ­
u id f o r m , a n d g e n e r a l l y h a v e n o m o r e
th a n 12 m o n t h s r e m a in in g t o m a t u r it y .
W h e n a p p r o p r ia t e in c o n n e c t i o n w i t h
a r r a n g e m e n ts to p r o v id e in v e s t m e n t fa ­
c ilitie s fo r fo r e ig n c u r r e n c y h o ld in g s ,
U .S . G o v e r n m e n t s e c u r itie s m a y b e p u r ­
c h a s e d fr o m fo r e ig n c e n tr a l b a n k s u n d e r
a g r e e m e n ts fo r r e p u r c h a se o f s u c h s e c u ­
r it ie s w i t h i n 3 0 c a l e n d a r d a y s .
6 . A ll o p e r a t i o n s u n d e r t a k e n p u r s u a n t
t o t h e p r e c e d i n g p a r a g r a p h s s h a ll b e r e ­
p o r te d p r o m p tly to th e F o r e ig n C u r r e n c y
S u b c o m m itte e a n d th e C o m m itte e . T h e
F o r e ig n C u r r e n c y S u b c o m m it te e c o n ­
s i s t s o f t h e C h a ir m a n a n d V i c e C h a ir m a n
o f t h e C o m m i t t e e , t h e V i c e C h a ir m a n o f
th e B o a r d o f G o v e r n o r s , a n d s u c h o th e r
m e m b e r o f t h e B o a r d a s t h e C h a ir m a n
m a y d e s i g n a t e ( o r in t h e a b s e n c e o f
m e m b e r s o f th e B o a r d s e r v in g o n th e
S u b c o m m itte e , o th e r B o a r d M e m b e r s
d e s i g n a t e d b y t h e C h a ir m a n a s a lt e r ­
n a t e s , a n d in t h e a b s e n c e o f t h e V i c e
C h a ir m a n o f t h e C o m m i t t e e , h is a lt e r ­
n a te ). M e e tin g s o f th e S u b c o m m itte e
s h a ll b e c a l l e d a t t h e r e q u e s t o f a n y
m e m b e r , o r at th e r e q u e s t o f th e M a n a g ­
er fo r F o r e ig n O p e r a tio n s fo r th e p u r ­
p o s e s o f r e v ie w in g r e c e n t o r c o n te m p la t­
e d o p e r a tio n s a n d o f c o n s u ltin g w ith th e
M a n a g e r o n o t h e r m a t t e r s r e l a t in g t o h is
r e s p o n s ib ilitie s . A t th e r e q u e s t o f a n y
m e m b e r o f th e S u b c o m m it te e , q u e s tio n s
a r is i n g f r o m s u c h r e v i e w s a n d c o n s u l t a ­
t i o n s s h a ll b e r e f e r r e d f o r d e t e r m i n a t i o n
to th e F e d e r a l O p e n M a r k e t C o m m itte e .
V o t e s fo r t h e s e a c tio n s :
M essrs.
V o l c k e r , B o e h n e , B o y k i n , C o r r ig a n ,

R ecord o f Policy Actions o f the FOMC

P a r te e , R ic e , S c h u ltz , S o lo m o n , M rs.
T e e t e r s , M e s s r s . W a l l i c h , a n d W in n .
V o t e s a g a in s t t h e s e a c tio n s : N o n e .
A b s e n t : M e s s r s . G r a m le y a n d M a y o .
( M r . W in n v o t e d a s a lt e r n a t e f o r M r .
M a y o .)

s a le s

o f th e

sam e

c u r r e n c ie s

a t th e

sa m e e x c h a n g e r a te to th e E S F . P u r­
su a n t to
m it te e

th a t a g r e e m e n t,

had

agreed

th e

th a t th e

C om ­

F ederal

R e s e r v e w o u ld b e p r e p a r e d to w a r e ­
h o u se

fo r

th e

T reasu ry

or

fo r

th e

E S F u p to $ 5 b illio n o f e lig ib le fo r ­
4.

A g r e e m e n t w ith
to

F o r e ig n
At

T reasu ry

e ig n c u r r e n c ie s . A t th is m e e t in g th e

W areh ou se

its

C o m m it t e e r e a ffir m e d th e a g r e e m e n t

C u r r e n c ie s

m e e tin g

on

o n th e te r m s a d o p te d o n M a r c h

Janu ary

1 7 -1 8 ,

1 9 7 7 , th e C o m m itte e h a d a g r e e d to a
s u g g e s tio n b y th e T r e a s u r y th a t th e
Federal

R eserv e

“ w a reh o u se”

fo r e ig n

th a t is ,

to

fo r e ig n

c u r r e n c ie s

change

u n d erta k e

m ake

c u r r e n c ie s —

sp ot p u rch ases
fr o m

S t a b iliz a tio n

s im u lta n e o u s ly

to

to

th e

Fund

m ake

of

E x­
and

fo r w a r d

18,

1 9 8 0 , w i t h t h e u n d e r s t a n d i n g t h a t it
w o u ld b e s u b je c t to a n n u a l r e v ie w .
V o te s
fo r
th is
a c tio n :
M essrs.
V o l c k e r , B o e h n e , B o y k i n , C o r r ig a n ,
P a r te e , R ic e , S c h u ltz , S o lo m o n , M r s.
T e e t e r s , M e s s r s . W a l l i c h , a n d W in n .
V o t e s a g a i n s t t h i s a c t io n : N o n e . A b ­
se n t: M e s s r s . G r a m le y a n d M a y o .
(M r . W in n v o t e d a s a l t e r n a t e f o r M r .
M a y o .)

R e c o r d s o f p o l ic y a c t i o n s t a k e n b y t h e F e d e r a l O p e n M a r k e t C o m m it t e e a t e a c h m e e t in g , in t h e
f o r m in w h i c h t h e y w i l l a p p e a r i n t h e B o a r d ’ s A n n u a l R e p o r t , a r e m a d e a v a i l a b l e a f e w d a y s a f t e r
t h e n e x t r e g u l a r l y s c h e d u l e d m e e t i n g a n d a r e l a t e r p u b l i s h e d in t h e B u l l e t i n .




505

507

Legal D evelopm ents
A m e n d m e n t s to R e g u l a t io n s D a n d

th e a g r e e m e n t w ith th e in s tit u tio n , to d e m a n d p a y m e n t

Q

o n ly o u t s id e th e U n it e d S t a te s .
P a r t 2 0 4 — R e s e r v e R e q u ir e m e n ts o f D e p o s ito r y
I n s titu tio n s

2 . S e c t i o n 2 1 7 .1 o f R e g u l a t i o n Q (1 2 C F R P a r t 2 1 7 )

P a r t 2 1 7 — I n te r e s t o n D e p o s its

f o llo w s :

is

D e p o s its P a y a b le O u ts id e th e U n ite d S ta te s

am end ed

by

a d d in g

a

new

paragraph

(k )

as

S e c t io n 2 1 7 .1 — D e fin it io n s

T h e B o a rd o f G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s ­

F o r p u r p o s e s o f t h is P a r t , t h e f o l l o w i n g

t e m h a s a m e n d e d it s R e g u l a t i o n D — R e s e r v e R e q u i r e ­

a p p ly u n l e s s o t h e r w i s e s p e c i f i e d :

d e fin itio n s

m e n t s o f D e p o s i t o r y I n s t i t u t i o n s (1 2 C F R P a r t 2 0 4 )
a n d R e g u l a t i o n Q — I n t e r e s t o n D e p o s i t s (1 2 C F R P a r t
2 1 7 ) t o s u b j e c t d e p o s i t s in d e n o m i n a t i o n s o f l e s s t h a n

(k ) “ A n y

$ 1 0 0 ,0 0 0 m a i n t a i n e d a t f o r e i g n

b r a n c h e s to in te r e s t

lo c a te d o u t s id e o f th e S t a te s o f th e U n it e d S t a te s a n d

r a t e c e i l i n g s a n d r e s e r v e r e q u i r e m e n t s . T h is a c t i o n is

t h e D i s t r i c t o f C o l u m b i a ” m e a n s (1 ) a d e p o s i t o f a U . S .

t a k e n in lig h t o f r e c e n t o f f e r in g s t h a t h a v e s i g n if i c a n t

r e s i d e n t 8a ( a s d e f i n e d in 12 C F R § 2 0 4 . 2 ( s ) ) t h a t is in a

p o te n tia l a d v e r s e im p lic a tio n s fo r th e v ia b ility o f th e

d e n o m in a tio n o f $ 1 0 0 ,0 0 0 o r m o r e , a n d a s to w h ic h th e

e x is tin g

in t e r e s t r a te

c e ilin g

str u c tu r e ,

th e

flo w

of

fu n d s a m o n g d e p o s ito r y in s tit u tio n s , a n d th e c o n d u c t
o f m o n e ta r y p o lic y .

d e p o s i t t h a t is p a y a b l e

d e p o s i t o r is

e n title d

u n d e r th e

o n ly

a t a n o f f ic e

a g r e e m e n t w it h

th e

in s t i t u t i o n , t o d e m a n d p a y m e n t o n l y o u t s i d e t h e S t a t e s
o f t h e U n i t e d S t a t e s o r t h e D i s t r i c t o f C o l u m b i a o r (2 ) a

E ffe c tiv e M a y 14, 1 9 8 1 , th e B o a r d o f G o v e r n o r s o f

d e p o s i t o f a p e r s o n w h o is n o t a U n i t e d S t a t e s r e s i -

t h e F e d e r a l R e s e r v e S y s t e m h a s a m e n d e d it s R e g u l a ­

d e n t 8a a s t o w h i c h t h e d e p o s i t o r is e n t i t l e d u n d e r t h e

t i o n s D (1 2 C F R P a r t 2 0 4 ) a n d Q (1 2 C F R P a r t 2 1 7 ) a s

a g r e e m e n t w ith th e in s tit u tio n

fo llo w s :

o n ly o u t s id e th e S t a te s o f th e U n it e d

to d e m a n d p a y m e n t,
S ta te s o r th e

D i s t r i c t o f C o lu m b ia .
1. S e c t i o n 2 0 4 . 2 o f R e g u l a t i o n D (1 2 C F R P a r t 2 0 4 ) is
a m e n d e d b y a d d in g a n e w p a r a g r a p h (t) a s f o l l o w s :
A m e n d m e n t to R u l e s R e g a r d in g
S e c t io n 2 0 4 .2 — D e fin it io n s

D e l e g a t io n o f A u t h o r it y

F o r p u r p o s e s o f t h is P a r t , t h e f o l l o w i n g

d e f in it io n s

a p p ly u n l e s s o t h e r w i s e s p e c i f i e d :

P a r t 2 6 5 — R u le s R e g a r d in g D e le g a tio n o f
A u th o r ity
G e n e r a l C o u n s e l A u th o r ity to A p p r o v e

(t)

“ A ny

d e p o s i t t h a t is p a y a b l e

o n ly

at an

o f f ic e

E x c e p t io n s U n d e r R e g u la tio n L

l o c a t e d o u t s i d e t h e U n i t e d S t a t e s ” m e a n s (1 ) a d e p o s i t
o f a U n i t e d S t a t e s r e s i d e n t 1 t h a t is in a d e n o m i n a t i o n

T h e B o a rd o f G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s ­

o f $ 1 0 0 ,0 0 0 o r m o r e , a n d a s t o w h i c h t h e d e p o s i t o r is

te m

is a m e n d i n g it s R u l e s R e g a r d in g D e l e g a t i o n

of

e n title d , u n d e r th e a g r e e m e n t w ith th e in s tit u tio n , to
d e m a n d p a y m e n t o n l y o u t s i d e t h e U n i t e d S t a t e s o r (2 )
a d e p o s it o f a p e r s o n

w ho

is

n o t a U n it e d

S ta te s

r e s id e n t 1 a s to w h ic h th e d e p o s it o r is e n tit le d , u n d e r

1.
A deposit o f a foreign branch, office, subsidiary, affiliate or other
foreign establishment (“ foreign affiliate” ) controlled by one or more
domestic corporations is not regarded as a deposit o f a United States
resident if the funds serve a purpose in connection with its foreign or




international business or that of other foreign affiliates o f the control­
ling domestic corporation(s).
8a. A deposit of a foreign branch, office, subsidiary, affiliate or
other foreign establishment (“ foreign affiliate” ) controlled by one or
more domestic corporations is not regarded as a deposit o f a United
States resident if the funds serve a purpose in connection with its
foreign or international business or that of other foreign affiliates of
the controlling domestic corporation(s).

508

Federal R eserve Bulletin □ June 1981

A u t h o r i t y in o r d e r t o d e l e g a t e t o it s G e n e r a l C o u n s e l

S t a t e B a n k , S h e p h e r d , M i c h i g a n ( “ S h e p h e r d B a n k ” );

a u t h o r it y t o g r a n t c e r t a i n e x c e p t i o n s t o t h e p r o h i b i ­

and

t i o n s a g a in s t m a n a g e m e n t i n t e r l o c k s a m o n g d e p o s i ­

M ic h ig a n ( “ W e s t B r a n c h B a n k ” ). T h e c o m p a n y i n t o

t o r y i n s t i t u t i o n s c o n t a i n e d in t h e D e p o s i t o r y I n s t i t u ­

w h ic h F B C is to b e m e r g e d h a s n o s ig n ific a n c e e x c e p t

t i o n M a n a g e m e n t I n t e r l o c k s A c t (1 2 U . S . C . § 3 2 0 1 e t

a s a m e a n s to fa c ilita te th e a c q u is itio n o f th e v o tin g

F ir st

C o m m u n ity

B ank,

N .A .,

W est

B ran ch ,

s e q . ) . T h e d e l e g a t i o n a u t h o r i z e s t h e B o a r d ’s G e n e r a l

sh a r e s o f F B C . A c c o r d in g ly , th e p r o p o s e d a c q u is itio n

C o u n s e l to g ra n t th e

o f sh ares

e x c e p tio n s

w hen

t h e p r im a r y

fe d e r a l s u p e r v is o r y a g e n c y o f th e d e p o s ito r y o r g a n iz a ­

o f th e

su ccesso r

o r g a n iz a tio n

is

tr e a te d

h e r e in a s th e p r o p o s e d a c q u is itio n o f s h a r e s o f F B C .

t i o n in n e e d o f m a n a g e m e n t s e r v i c e h a s g r a n t e d t h e

N o t i c e o f t h e a p p l i c a t i o n , a f f o r d in g o p p o r t u n i t y f o r

e x c e p t i o n . T h is a c t i o n is i n t e n d e d t o e x p e d i t e r e v i e w s

in t e r e s t e d p e r s o n s to s u b m it c o m m e n t s a n d v ie w s , h a s

o f r e q u e s t s f o r e x c e p t i o n s p r o v i d e d in R e g u l a t i o n L

b e e n g i v e n in a c c o r d a n c e w i t h s e c t i o n 3 ( b ) o f t h e A c t .

(1 2 C . F . R . § 2 1 2 . 3 ( b ) ) .

T h e t im e f o r f ilin g c o m m e n t s a n d v i e w s h a s e x p i r e d ,

E ffe c tiv e M a y 2 0 , 1 9 8 1 , th e B o a r d o f G o v e r n o r s o f
th e F e d e r a l R e s e r v e S y s te m
R e g a r d in g D e l e g a t i o n

h a s a m e n d e d it s R u l e s

o f A u th o r ity b y

a d d in g p a r a ­

a n d t h e B o a r d h a s c o n s i d e r e d t h e a p p l i c a t i o n a n d a ll
c o m m e n t s r e c e iv e d , in c lu d in g t h o s e o f S e c o n d N a t io n ­
a l C o r p o r a t i o n , S a g i n a w , M i c h i g a n ( “ P r o t e s t a n t ” ) , in
lig h t o f t h e f a c t o r s s e t f o r t h in s e c t i o n 3 ( c ) o f t h e A c t

g r a p h (9 ) t o r e a d a s f o l l o w s :

(1 2 U . S . C . § 1 8 4 2 ( c ) ) .
S e c t io n 2 6 5 .2 — S p e c ific F u n c t io n s D e le g a t e d to

A p p l i c a n t , t h e th ir d la r g e s t b a n k in g o r g a n i z a t i o n in

B o a rd E m p lo y e e s a n d to F e d e r a l R e s e r v e

M ic h ig a n , c o n t r o l s t e n b a n k s w i t h a g g r e g a t e d e p o s i t s

B an k s.

o f a p p r o x im a te ly
m a t e l y 9 .3
banks

(b ) *

*

in

$ 3 .7 b illio n , r e p r e s e n tin g a p p r o x i­

p e r c e n t o f to ta l d e p o s its
th e

s t a t e .1 A c q u is itio n

in c o m m e r c i a l

of FBC,

th e

4 4 th

l a r g e s t b a n k in g o r g a n i z a t i o n in M i c h i g a n , c o n t r o l l i n g

*

th r e e b a n k s w ith a g g r e g a te d e p o s it s o f $ 1 0 0 .6 m illio n ,
w o u l d i n c r e a s e A p p l i c a n t ’s s h a r e o f c o m m e r c i a l b a n k
(9 ) U n d e r t h e p r o v i s i o n s o f s e c t i o n 2 1 2 . 4 ( b ) o f t h is

d e p o s i t s in M i c h i g a n b y 0 . 2 5 p e r c e n t a n d w o u l d n o t

c h a p t e r ( R e g u l a t i o n L r e l a t in g t o i n t e r l o c k i n g r e l a ­

a lt e r it s s t a t e w i d e r a n k in g .

tio n s h ip s p e r m itte d b y B o a r d o r d e r ), to g r a n t e x c e p ­

F B C c o n t r o l s M id la n d B a n k ( d e p o s i t s o f $ 8 3 .5 m i l ­

tio n s fr o m th e p r o h ib itio n s o f R e g u la tio n L w h e n th e

l i o n ) , t h e s i x t h l a r g e s t o f t w e l v e b a n k in g o r g a n i z a t i o n s

p r im a r y F e d e r a l s u p e r v i s o r o f t h e d e p o s i t o r y i n s t i t u ­

c o m p e t i n g in t h e B a y C i t y - S a g i n a w b a n k in g m a r k e t , 2

t io n in n e e d o f m a n a g e m e n t a s s i s t a n c e h a s a p p r o v e d

h o ld in g 5 . 2 p e r c e n t o f t h e d e p o s i t s in t h a t m a r k e t ;
S h e p h e r d B a n k ( d e p o s it s o f $ 1 7 .0 m illio n ), th e s ix th

th e e x c e p tio n .

l a r g e s t o f n in e b a n k in g o r g a n i z a t i o n s c o m p e t i n g in t h e
M t. P l e a s a n t b a n k in g m a r k e t , 3 h o l d i n g 7 . 2 p e r c e n t o f
B a n k H o l d in g C o m p a n y a n d B a n k M e r g e r
O r d e r s Iss u e d B y Th e B o a r d o f G o v e r n o r s

t h e d e p o s i t s in t h a t m a r k e t ; a n d W e s t B r a n c h B a n k , a
d e n o v o b a n k o p e n e d in D e c e m b e r o f 1 9 8 0 , l o c a t e d in
th e

S ta n d is h -W e s t

B ran ch

b a n k in g

m a r k e t.4 W e s t

O rd e r s U n d e r S e c tio n 3 o f B a n k H o ld in g

B r a n c h B a n k is t h e s m a l l e s t o f s i x b a n k in g o r g a n i z a ­

C o m p a n y A c t.

t i o n s in t h e S t a n d i s h - W e s t B r a n c h b a n k in g m a r k e t a n d
c o n t r o l s a n e g l i g i b l e a m o u n t o f d e p o s i t s in t h a t m a r k e t .

D e tr o itb a n k C o r p o r a tio n ,

N o n e o f A p p l i c a n t ’s s u b s i d i a r y b a n k s h a s a n o f f ic e in

D e tr o it, M ic h ig a n

a n y o f t h e r e l e v a n t b a n k in g m a r k e t s , o r w i t h i n 9 7 m i l e s
o f a n y o f f i c e o f F B C ’s s u b s i d i a r y b a n k s . T h u s , n o

O r d e r A p p r o v in g A c q u is itio n o f B a n k H o ld in g

s ig n if i c a n t e x i s t i n g c o m p e t i t i o n w o u l d b e e l i m i n a t e d

C om pany

b y c o n s u m m a t io n o f th e p r o p o s a l.

D e tr o itb a n k C o r p o r a tio n , D e tr o it, M ic h ig a n , a b a n k
h o ld in g

com pan y

w ith in

th e

m e a n in g

o f th e

B ank

H o l d i n g C o m p a n y A c t ( t h e “ A c t ” ) , h a s a p p lie d f o r t h e
B o a r d ’s a p p r o v a l u n d e r s e c t i o n 3 o f t h e A c t (1 2 U . S . C .
§ 1 8 4 2 ) t o a c q u ir e 1 0 0 p e r c e n t o f t h e v o t i n g s h a r e s o f
th e s u c c e s s o r b y m e r g e r to F ir s t B a n k C o r p o r a tio n ,
M id la n d , M ic h ig a n ( “ F B C ” ) , a b a n k h o l d i n g c o m p a n y
th a t c o n t r o l s F i r s t M id la n d B a n k & T r u s t C o m p a n y ,
M id la n d ,

M ic h ig a n




( “ M id la n d

B a n k ” );

Sh ep herd

1. All banking data are as o f June 30, 1980, unless otherwise
indicated.
2. The Bay-City Saginaw banking market is approximated by Bay,
Midland, and Gladwin Counties and the northern three-quarters o f
Saginaw County.
3. The Mount Pleasant banking market is approximated by Isabella
and Clare Counties.
4. The Standish-West Branch banking market is approximated by
Arenac and Ogemaw Counties, the western half of Iosco County, and
Curtis township in Alcona County.

Legal Developm ents

W it h r e g a r d t o p o t e n t i a l c o m p e t i t i o n , b a s e d u p o n
t h e f a c t s o f r e c o r d , i n c l u d i n g A p p l i c a n t ’s s i z e a n d it s

s ta te w id e

b a n k in g

str u c tu r e s

in

509

general and,

m ore

s p e c i f i c a l l y , t h e s i z e d i s p a r i t y b e t w e e n t h e la r g e b a n k ­

a b il it y t o e x p a n d d e n o v o , A p p l i c a n t m u s t b e v i e w e d

in g o r g a n i z a t i o n s o p e r a t i n g s t a t e w i d e a n d t h e s m a lle r

a s a l i k l e y p o t e n t i a l e n t r a n t in t o t h e t h r e e r e l e v a n t

r e g i o n a l b a n k in g

b a n k in g m a r k e t s . A c q u i s i t i o n o f W e s t B r a n c h B a n k ,

c e r n e d w ith th e p o s s ib ilit y th a t c o n t in u e d a p p r o v a l o f

h o w e v e r , w i l l r e s u l t in n o a d v e r s e e f f e c t s u p o n p o t e n ­

a c q u i s i t i o n o r m e r g e r p r o p o s a l s i n v o l v i n g la r g e r s t a t e ­

o r g a n iz a tio n s .

The

B oard

is

con­

tia l c o m p e t i t i o n in t h e S t a n d i s h - W e s t B r a n c h b a n k in g

w id e b a n k h o ld in g c o m p a n ie s a n d r e la tiv e ly s iz e a b le

m a r k e t s i n c e t h e b a n k t o b e a c q u ir e d is a t t h is t im e a

b a n k in g o r g a n i z a t i o n s m a y p e r p e t u a t e t h is s i z e d is p a r ­

r e l a t i v e l y m in o r c o m p e t i t i v e f a c t o r . M o r e o v e r , o n l y

i t y a n d i n c r e a s e c o n c e n t r a t i o n r a t i o s . A p p l i c a n t ’s p r o ­

o n e o f t h e s t a t e ’s f i f t e e n l a r g e s t b a n k in g o r g a n i z a t i o n s

p o s a l t o a c q u ir e P r o t e s t a n t i n v o l v e d t h e a c q u i s i t i o n b y

n o w is r e p r e s e n t e d in t h e m a r k e t , A p p l i c a n t is b u t o n e

A p p l i c a n t o f t h e 1 8 th l a r g e s t b a n k in g o r g a n i z a t i o n in

e n tr y

M i c h ig a n , c o n t r o l l i n g 2 s u b s i d i a r y b a n k s w i t h a g g r e ­

v e h i c l e w o u l d r e m a in in t h e m a r k e t f o l l o w i n g c o n s u m ­

g a te d e p o s it s o f a p p r o x im a te ly $ 3 8 3 .9 m illio n , r e p r e ­

o f s e v e r a l p o te n tia l e n tr a n ts,

and

a fo o t h o ld

m a t io n o f t h e p r o p o s a l . W it h r e g a r d t o t h e M t . P l e a s ­

s e n t in g

a n t b a n k in g m a r k e t , n o s u b s t a n t i a l a m o u n t o f p o t e n t i a l

d e p o s it s .6 H o w e v e r , th e B o a r d d o e s

1 .0

percent

of

s ta te w id e

c o m m e r c ia l

bank

n o t r e g a r d th e

c o m p e tit io n w o u ld b e e lim in a te d a s a r e s u lt o f c o n ­

a c q u i s i t i o n o f F B C , t h e 4 4 t h l a r g e s t b a n k in g o r g a n i z a ­

s u m m a t io n o f t h e p r o p o s a l b e c a u s e o f t h e s m a ll s i z e

t io n in t h e s t a t e , c o n t r o l l i n g t h r e e b a n k s w i t h a g g r e g a t e

a n d m a r k e t sh a r e o f d e p o s it s h e ld b y S h e p h e r d B a n k .

d e p o s it s o f a p p r o x im a te ly $ 1 0 0 .6 m illio n , r e p r e s e n tin g

B a sed

of

0 .2 5 p e r c e n t o f s t a t e w i d e c o m m e r c i a l b a n k d e p o s i t s ,

upon

d e m o g r a p h ic

d a ta

and

o th er

fa c ts

r e c o r d , th e m a r k e t a p p e a r s o n ly m o d e r a te ly a ttr a c tiv e

a s i n v o l v i n g t h e a c q u i s i t i o n o f a b a n k in g o r g a n i z a t i o n

f o r d e n o v o e n t r y . F u r t h e r , o n l y o n e o f t h e s t a t e ’s

o f s u f f i c ie n t s i z e s o t h a t c o n s u m m a t i o n w o u l d h a v e a

f i f t e e n l a r g e s t b a n k in g o r g a n i z a t i o n s c u r r e n t l y is r e p r e ­

s e r i o u s a d v e r s e e f f e c t u p o n c o n c e n t r a t i o n in M i c h i g a n .

s e n t e d in t h e m a r k e t , A p p l i c a n t is o n l y o n e o f s e v e r a l
p o te n tia l e n tr a n t s , a n d f o llo w in g c o n s u m m a t io n o f th e

W it h

regard

to

p o te n tia l c o m p e tit io n

in t h e

B ay

C i t y - S a g i n a w b a n k in g m a r k e t , A p p l i c a n t ’s p r o p o s a l t o

p r o p o s a l , f i v e f o o t h o l d e n t r y v e h i c l e s w o u l d r e m a in in

a c q u ir e P r o t e s t a n t w o u l d h a v e i n v o l v e d t h e a c q u i s i ­

th e m a r k e t.

t io n o f t h e l a r g e s t o f t h e t w e l v e b a n k in g o r g a n i z a t i o n s

W it h r e s p e c t t o

m a r k e t,

b ecau se

o f th e

d e p o s its

h e ld b y

M id la n d

th e

s iz e

and

B ay

C ity -S a g in a w
of

c o m p e t i n g in t h e m a r k e t , c o n t r o l l i n g 2 5 . 8 p e r c e n t o f

B a n k in t h a t m a r k e t , n o

m arket

sh are

t h e c o m m e r c i a l b a n k d e p o s i t s in t h e m a r k e t . A p p l i ­

s u b s ta n tia l a m o u n t o f p o t e n tia l c o m p e tit io n w o u ld b e

c a n t ’s p r o p o s a l t o a c q u i r e F B C , h o w e v e r , i n v o l v e s t h e

e l i m i n a t e d in t h a t m a r k e t a s a r e s u l t o f c o n s u m m a t i o n

p r o p o s e d a c q u i s i t i o n o f M id la n d B a n k , t h e 6 t h l a r g e s t

o f t h e p r o p o s a l . O n l y f o u r o f t h e s t a t e ’s f i f t e e n l a r g e s t

o f 12 b a n k in g o r g a n i z a t i o n s , c o n t r o l l i n g o n l y 5 . 2 p e r ­

b a n k in g o r g a n i z a t i o n s c u r r e n t l y a r e r e p r e s e n t e d in t h e

c e n t o f t h e c o m m e r c i a l b a n k s d e p o s i t s in t h e m a r k e t .

m a r k e t,

T h is m e a n s o f e n t r y in t o t h e B a y C i t y - S a g i n a w b a n k ­

A p p l i c a n t is

o n ly

one

o f s e v e r a l p o te n tia l

e n tr a n ts , a n d fo llo w in g c o n s u m m a t io n o f th e p r o p o s a l,

in g m a r k e t d o e s

f iv e

p r o p o s a l in lig h t o f t h e B o a r d ’s p r e v i o u s c o n c e r n s .

fo o t h o ld

e n tr y

v e h ic le s

w o u ld

r e m a in

in

th e

m a r k e t.

n o t a p p e a r to b e a n u n r e a s o n a b le

W h il e t h e c o n c e n t r a t e d n a t u r e o f t h e m a r k e t 7 a n d t h e

I n it s c o n s i d e r a t i o n o f t h is p r o p o s a l , t h e B o a r d h a s

a t t r a c t i v e n e s s f o r d e n o v o e n t r y i n t o t h e M id la n d a n d

r e v ie w e d th e c o m m e n ts o f P r o te sta n t, w h o c o n te n d s

S a g in a w

th a t t h e f a c t o r s l e a d i n g t o t h e B o a r d ’ s r e c e n t d e n ia l o f

c h a n g e d m e a s u r a b l y s i n c e t h e B o a r d ’s d e n ia l o f A p p l i ­

C o u n ty

p o r tio n

of

th e

m arket

have

not

th e p r o p o s e d a c q u is itio n o f P r o te s ta n t b y A p p lic a n t5

c a n t ’s p r o p o s a l t o a c q u i r e P r o t e s t a n t , t h e r e l a t i v e s i z e

a r e p r e s e n t in t h is

o f th e

s h o u ld

deny

ca se

a n d , th e r e fo r e , th e

t h is a p p l i c a t i o n .

B oard

In c o n s id e r in g A p p li­

b a n k in g

o r g a n iz a tio n

to

be

a c q u ir e d

d if f e r s

s ig n if i c a n t ly . F u r t h e r , w h i l e A p p l i c a n t ’s p r o p o s e d a c ­

c a n t ’s p r o p o s a l t o a c q u i r e P r o t e s t a n t , t h e B o a r d f o u n d

q u i s i t i o n o f t h e l a r g e s t b a n k in t h e m a r k e t w o u l d h a v e

th a t t h e p r o p o s a l w o u l d h a v e a d v e r s e e f f e c t s o n s t a t e ­

d o n e n o t h in g t o r e d u c e t h e c o n c e n t r a t i o n o f b a n k in g

w i d e c o n c e n t r a t i o n o f b a n k in g r e s o u r c e s a n d o n p o t e n ­

resou rces

tia l

p o s e d e n tr y in to th e m a r k e t w o u ld h a v e a d e c o n c e n -

c o m p e titio n

in

th e

S a g in a w -B a y

C it y

b a n k in g

in

th e

r e le v a n t m a r k e t,

A p p lic a n t’s p r o ­

m a r k e t th a t w e r e n o t o u t w e ig h e d b y fa c to r s r e la te d to

t r a tin g i m p a c t o n t h e b a n k in g m a r k e t . A c c o r d i n g l y ,

th e c o n v e n ie n c e a n d n e e d s o f th e c o m m u n itie s to b e

t h e B o a r d is s a t i s f i e d t h a t t h e f a c t s o f t h is c a s e a r e

served .

s u f f i c ie n t ly d if f e r e n t f r o m

W it h r e s p e c t t o c o n c e n t r a t i o n o f b a n k in g r e s o u r c e s
in

M ic h ig a n ,

th e

B oard

has

c o n tin u e d

to

d e n ia l

th o se

o f A p p l i c a n t ’s

a s s o c ia te d
p rop osal

to

w it h t h e
a c q u ir e

m o n ito r

5. DETR O ITBA N K C orporation, 66 F e d e r a l R e se r v e B u l l e t i n
242 (1980).




B o a r d ’s

6. Banking data are as of D ecem ber 31, 1978.
7. The four largest banking organizations controlled 79.3 and 79.1
percent of total market deposits as o f Decem ber 31, 1978, and June 30,
1980, respectively.

510

Federal R eserve Bulletin □ June 1981

P r o te sta n t.

o v e r a ll im p a c t o f

a c q u ir in g 8 0 p e r c e n t o r m o r e o f t h e v o t i n g s h a r e s o f

c o n s u m m a t i o n o f t h i s p r o p o s a l in lig h t o f t h e a b o v e

A fte r c o n s id e r in g

th e

F ir s t N a tio n a l B a n k o f L in c o ln w o o d , L in c o ln w o o d ,

a n d o t h e r f a c t s o f r e c o r d , t h e B o a r d c o n c l u d e s th a t

I llin o is ( “ B a n k ” ).

a p p r o v a l o f t h is a p p l i c a t i o n w o u l d h a v e n o s i g n if i c a n t

N o t i c e o f t h e a p p l i c a t i o n , a f f o r d in g o p p o r t u n i t y f o r

a d v e r s e e f f e c t s u p o n c o m p e t i t i o n in a n y r e l e v a n t a r e a .

in te r e s te d p e r s o n s to s u b m it c o m m e n t s a n d v ie w s , h a s

T h e f in a n c ia l a n d m a n a g e r ia l r e s o u r c e s a n d f u t u r e

b e e n g i v e n in a c c o r d a n c e w i t h s e c t i o n 3 ( b ) o f t h e A c t .

p ro sp ects

o f A p p lic a n t,

FBC,

and

t h e ir

s u b s id ia r y

T h e t im e f o r f ilin g c o m m e n t s a n d v i e w s h a s e x p i r e d ,

b a n k s are r eg a r d e d a s s a tis fa c to r y . A c c o r d in g ly , b a n k ­

a n d t h e B o a r d h a s c o n s i d e r e d t h e a p p l i c a t i o n a n d a ll

in g

c o m m e n t s r e c e i v e d in lig h t o f t h e f a c t o r s s e t f o r t h in

fa c to r s

are

c o n s is t e n t

w ith

app roval

of

th e

s e c t io n 3 (c ) o f th e A c t (1 2 U .S .C . § 1 8 4 2 (c )).

. a p p lic a tio n .

A p p l i c a n t is a n o n o p e r a t i n g c o m p a n y o r g a n i z e d f o r

F o llo w in g c o n s u m m a tio n o f th e p r o p o s e d tr a n s a c ­
tio n ,

A p p lic a n t

to

th e p u r p o s e o f b e c o m in g a b a n k h o ld in g c o m p a n y b y

F B C ’s s u b s id ia r y b a n k s in e s t a b l i s h i n g c a s h m a n a g e ­

a c q u ir in g B a n k . B a n k , t h e 9 8 t h l a r g e s t b a n k in g o r g a n i ­

m e n t s e r v i c e s a s w e l l a s e x p a n d e d i n t e r n a t io n a l s e r v ­

z a t i o n in t h e

i c e s . A p p l i c a n t a l s o i n t e n d s t o a s s i s t F B C ’s s u b s id ia r y

$ 1 0 2 .8 m i l l i o n , r e p r e s e n t i n g a p p r o x i m a t e l y 0 . 1 3 p e r ­

b a n k s in m a k in g m o r t g a g e f in a n c in g a v a i l a b l e f o r la r g e

c e n t o f t h e t o t a l d e p o s i t s in c o m m e r c i a l b a n k s in t h e

c o m m e r c ia l

p rop oses

and

to

in d u s t r ia l

p r o v id e

a s s is ta n c e

c o n s tr u c tio n .

T h u s,

th e

s t a te .1 B a n k

s ta te o f I llin o is , h a s to ta l d e p o s its o f

is

th e

6 8 th

la r g e s t o f 3 6 9

c o m m e r c ia l

B o a r d c o n c l u d e s t h a t c o n s i d e r a t i o n s r e l a t in g t o t h e

banks

c o n v e n ie n c e a n d n e e d s o f th e c o m m u n ity to b e s e r v e d

a p p r o x im a te ly 0 .1 9 p e r c e n t o f th e c o m m e r c ia l b a n k

le n d s lig h t w e i g h t t o w a r d a p p r o v a l , a n d o u t w e i g h a n y

d e p o s i t s in t h e m a r k e t .

in

th e

C h ic a g o

b a n k in g

m a r k e t ,2 a n d

h o ld s

P r in c ip a ls o f A p p l i c a n t a l s o a r e p r i n c i p a l s o f W a t e r

a d v e r s e c o m p e tit iv e e f f e c t s th a t m a y r e s u lt fr o m th e
p r o p o s a l. B a s e d u p o n th e fo r e g o in g a n d o th e r c o n s id ­

T ow er

e r a tio n s

B o a r d ’s

w h i c h h o l d s d e p o s i t s o f $ 2 2 . 8 m i l l i o n . T h e a f f ilia t io n

j u d g m e n t t h a t t h e p r o p o s e d a c q u i s i t i o n is in t h e p u b lic

r a i s e s n o s ig n if i c a n t c o m p e t i t i v e i s s u e s s i n c e t h e t w o

in te r e s t a n d th a t th e a p p lic a tio n s h o u ld b e a p p r o v e d .

in s titu tio n s

r e fle c te d

in

th e

record,

it i s

th e

O n th e b a s is o f th e r e c o r d , th e a p p lic a tio n is a p ­
p r o v e d fo r th e r e a s o n s s u m m a r iz e d a b o v e . T h e tr a n s ­

T ru st

and

S a v in g s

w o u ld

c o m m e r c ia l b a n k

h o ld

B ank,

o n ly

d e p o s its

in

C h ic a g o ,

I llin o is ,

0 .2 3

p ercent

o f to ta l

th e

C h ic a g o

b a n k in g

m a r k e t. T h e p r o p o s a l r e p r e s e n ts

a r e s t r u c t u r in g o f

a c t i o n s h a ll n o t b e m a d e b e f o r e t h e t h ir t ie t h c a le n d a r

B a n k ’s o w n e r s h i p f r o m i n d i v i d u a l s t o a c o r p o r a t i o n

d a y f o l l o w i n g t h e e f f e c t i v e d a t e o f t h is O r d e r o r la t e r

o w n e d b y th e s a m e in d iv id u a ls . C o n s u m m a tio n o f th e

th a n

o f t h is

p r o p o s a l th u s w o u ld n o t h a v e a n y a d v e r s e e ffe c ts o n

O r d e r , u n l e s s s u c h p e r i o d is e x t e n d e d f o r g o o d c a u s e

e x is t in g o r p o t e n tia l c o m p e t it io n , o r o n th e c o n c e n tr a ­

b y th e B o a r d , o r b y th e

t io n o f b a n k in g r e s o u r c e s in a n y r e l e v a n t a r e a . A c ­

th r e e

m o n th s

a fter

th e

e ffe c tiv e

d a te

F ed eral R eserv e

B ank o f

c o r d in g ly , th e B o a r d c o n c lu d e s th a t c o m p e t it iv e c o n ­

C h ic a g o p u r s u a n t t o d e l e g a t e d a u t h o r it y .
By

order

of

th e

B oard

of

G o v ern o rs,

e ffe c tiv e

s id e r a t i o n s

are

c o n s is te n t

w ith

ap p roval

of

th e

a p p lic a tio n .

M ay 20, 1981.

T h e f in a n c ia l a n d m a n a g e r ia l r e s o u r c e s a n d f u t u r e
V o t i n g f o r t h is a c t io n : V i c e C h a ir m a n S c h u l t z a n d G o v e r ­

p r o s p e c t s o f B a n k a n d A p p lic a n t a re c o n s id e r e d g e n e r ­

n o r s P a r te e , T e e t e r s , R ic e , a n d G r a m le y . A b s e n t a n d n o t

a lly s a t i s f a c t o r y . A l t h o u g h A p p l i c a n t w i l l in c u r s o m e

v o t in g : C h a ir m a n V o l c k e r a n d G o v e r n o r W a llic h .

d e b t in c o n n e c t i o n w i t h t h is p r o p o s a l , t h e r e a p p e a r s t o
be

(S ig n e d ) J a m e s M c A f e e ,
[s e a l]

A s s is ta n t S e c r e ta r y o f th e B o a r d .

s u f f i c ie n t f l e x i b i l i t y f o r A p p l i c a n t t o

s e r v ic e

th e

d e b t w i t h o u t a d v e r s e l y a f f e c t i n g t h e f in a n c ia l c o n d i ­
t i o n o f B a n k . I n m a k in g t h i s d e t e r m i n a t i o n , t h e B o a r d
h a s r e lie d o n A p p lic a n t’s c o m m it m e n t to in je c t c a p ita l
i n t o B a n k b y i s s u i n g $ 5 0 0 t h o u s a n d in s u b o r d i n a t e d
d e b e n t u r e s , a n d u s in g th e p r o c e e d s to p u r c h a s e n e w

F ir s t L in c o ln w o o d C o r p .,

B a n k c o m m o n s t o c k . In a d d itio n , th e B o a r d h a s r e lie d

L in c o ln w o o d , I llin o is

o n A p p l i c a n t ’s c o m m i t m e n t t h a t B a n k w i l l i s s u e a n

O r d e r A p p r o v in g F o r m a tio n o f B a n k H o ld in g

p a r ty (ie s ).

C om pany

c o m p l e t e d w i t h c o n s u m m a t i o n o f t h is p r o p o s a l . A c ­

a d d it io n a l $ 5 0 0 t h o u s a n d in c a p i t a l n o t e s t o a n o u t s i d e
B o th

o f th ese

c a p ita l in j e c tio n s

w ill b e

c o r d i n g l y , c o n s i d e r a t i o n s r e l a t in g t o b a n k in g f a c t o r s
F i r s t L i n c o l n w o o d C o r p ., L i n c o l n w o o d , I l l i n o i s , h a s
a p p lie d f o r t h e B o a r d ’s a p p r o v a l u n d e r s e c t i o n 3 ( a ) ( 1 )
o f t h e B a n k H o l d i n g C o m p a n y A c t (1 2 U . S . C . § 1 8 4 2
(a )(1 )) o f fo r m a tio n o f a b a n k h o ld in g c o m p a n y b y




1. All banking data are as o f Decem ber 31, 1979.
2. The Chicago banking market is approximated by all of Cook,
DuPage, and Lake Counties, Illinois.

Legal Developm ents

511

a r e c o n s i s t e n t w i t h a p p r o v a l o f t h e a p p l i c a t i o n . 3 W h il e

T h e B o a r d h a s r e c e iv e d fr o m th e p u b lic th r e e p r o ­

t h e r e w i l l b e n o i m m e d i a t e c h a n g e s in t h e s e r v i c e s

t e s t s t o t h is a p p l i c a t i o n , o n e o f w h i c h r e q u e s t e d t h e

o ffe r e d b y B a n k u p o n c o n s u m m a tio n o f th e p r o p o s a l,

B o a r d to h o ld a fo r m a l h e a r in g o n th e a p p lic a tio n . T h e

c o n s i d e r a t i o n s r e l a t in g t o t h e c o n v e n i e n c e a n d n e e d s

B o a r d h a s d e te r m in e d th a t th e th r e e p r o te s ts a r e n o t

o f th e c o m m u n ity to b e s e r v e d a r e c o n s is t e n t w ith

s u b s t a n t i v e , a n d t h a t t h e h e a r in g r e q u e s t s h o u l d b e

a p p r o v a l o f th e a p p lic a tio n . B a s e d u p o n th e fo r e g o in g

d e n i e d . H o w e v e r , w h i l e t h e r e i s n o l e g a l r e q u ir e m e n t

a n d o t h e r c o n s i d e r a t i o n s r e f l e c t e d in t h e r e c o r d o f t h is

t o h o ld a n y p u b l i c p r o c e e d i n g o n t h i s a p p l i c a t i o n , in

a p p l i c a t i o n , it i s t h e B o a r d ’s j u d g m e n t t h a t c o n s u m m a ­

lig h t o f t h e i m p o r t a n c e o f C r o c k e r N a t i o n a l B a n k in

t i o n o f t h e p r o p o s a l t o a c q u ir e B a n k w o u l d b e c o n s i s ­

t h e c o m m u n i t i e s in w h i c h it o p e r a t e s a n d t h e i n t e r e s t

t e n t w it h t h e p u b l i c i n t e r e s t a n d t h a t t h e a p p l i c a t i o n

o f t h e p u b l i c in t h e p r o p o s a l , t h e B o a r d h a s d e t e r m i n e d

s h o u ld b e a p p r o v e d .

t o h o ld a p u b l i c m e e t i n g o n t h e a p p l i c a t i o n in S a n

On

th e

b a s is

app roved

fo r

tr a n s a c tio n

o f th e

th e

s h a ll

R ecord,

reason s
not

be

th e

m ade

is

F r a n c i s c o , C a lif o r n i a . T h e m e e t i n g w i l l c o m m e n c e a t

The

9 :0 0 a .m . o n J u n e 2 2 , 1 9 8 1 , a t th e F e d e r a l R e s e r v e

a p p lic a tio n

s u m m a r iz e d
b e fo r e

above.
th e

t h ir t ie t h

c a le n d a r d a y f o l l o w i n g t h e e f f e c t i v e d a t e o f t h is O r d e r ,

B ank

o f San

F r a n c is c o ,

400

S a n so m e

S tr e e t,

San

F r a n c i s c o , C a lif o r n i a 9 4 1 2 0 .

o r la t e r t h a n t h r e e m o n t h s a f t e r t h e e f f e c t i v e d a t e o f

A n y p e r s o n w h o d e s ir e s to g iv e t e s tim o n y , p r e s e n t

t h is O r d e r , u n l e s s s u c h p e r i o d is e x t e n d e d f o r g o o d

e v i d e n c e , o r o t h e r w i s e p a r t i c i p a t e in t h is p r o c e e d i n g

c a u s e b y th e B o a r d , o r b y th e F e d e r a l R e s e r v e B a n k o f

s h o u ld

C h ic a g o p u r s u a n t to d e le g a te d a u th o r ity .

G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s t e m , W a s h in g ­

By

order

of

th e

B oard

of

G ov ern o rs,

e ffe c tiv e

file w i t h

th e

A s s is ta n t

S e c r e ta r y ,

B oard

of

t o n , D . C . , 2 0 5 5 1 , o n o r b e f o r e J u n e 1 2 , 1 9 8 1 , a w r it t e n
r e q u e s t c o n t a i n i n g a s t a t e m e n t o f t h e n a t u r e o f th a t

M a y 14, 1981.

p e r s o n ’s i n t e r e s t in t h e p r o c e e d i n g s , t h e e x t e n t o f t h e
V o t i n g f o r t h is a c t io n : C h a ir m a n V o l c k e r a n d G o v e r n o r s

p a r t ic ip a t io n d e s i r e d , a s u m m a r y o f t h e m a t t e r s c o n ­

S c h u lt z , P a r t e e , T e e t e r s , a n d R ic e . A b s e n t a n d n o t v o t in g :

c e r n in g w h ic h th a t p e r s o n d e s ir e s to g iv e te s t im o n y ,

G o v e r n o r s W a llic h a n d G r a m le y .

s u b m it e v id e n c e o r r a is e q u e s t io n s , a n d th e n a m e s a n d
id e n tity o f w it n e s s e s w h o p r o p o s e to a p p e a r .

(S ig n e d ) D . M i c h a e l M a n i e s ,
[s e a l]

A s s i s t a n t S e c r e ta r y o f th e B o a r d .

S u ch

r e q u e s ts w ill b e s u b m itte d to th e d e s ig n a te d p r e s id in g
o f f ic e r o f t h e p r o c e e d i n g .
By

order

o f th e

B oard

of

G o v ern o rs,

e ffe c tiv e

M ay 26, 1981.
M id la n d B a n k L im it e d ,
V o t in g f o r t h is a c t io n : C h a ir m a n V o l c k e r a n d G o v e r n o r s

L o n d o n , E n g la n d

S c h u lt z , W a llic h , P a r t e e , T e e t e r s , R i c e , a n d G r a m le y .

O rd e r f o r P u b lic M e e tin g
(S ig n e d ) J a m e s M c A f e e ,
M id la n d B a n k L i m i t e d , L o n d o n , E n g l a n d , h a s a p p lie d

[s e a l]

A s s i s t a n t S e c r e ta r y o f th e B o a r d .

f o r t h e B o a r d ’s a p p r o v a l u n d e r s e c t i o n 3 ( a ) ( 1 ) o f t h e
B a n k H o l d i n g C o m p a n y A c t (1 2 U . S . C . § 1 8 4 2 ( a ) ( 1 ) )
t o b e c o m e a b a n k h o l d i n g c o m p a n y b y a c q u ir in g 5 0

N o r th w e s t B a n c o r p o r a tio n ,

p ercent

M in n e a p o lis , M in n e s o ta

or

m ore

o f th e

v o tin g

sh ares

o f C rock er

N a t i o n a l C o r p o r a t i o n , S a n F r a n c i s c o , C a lif o r n i a . N o ­
t i c e o f t h is a p p l i c a t i o n w a s p u b l i s h e d in t h e F e d e r a l

O rd e r A p p r o v in g A c q u is itio n o f a B a n k H o ld in g

R e g is te r

C om pany

on

M arch

23,

1981

(4 6

F e d e r a l R e g is te r

1 8 ,0 6 6 ) .
N o r th w e s t B a n c o r p o r a tio n , M in n e a p o lis , M in n e s o ta ,
a b a n k h o ld in g c o m p a n y w i t h i n t h e m e a n i n g o f t h e
B ank
3.
The Board denied a previous proposal by Applicant to acquire
Bank in 1976 based on the Board’s determination that at that time
Applicant lacked the financial flexibility necessary to meet its annual
debt service requirements while maintaining adequate capital at Bank.
First Lincolnw ood C orp., 62 F e d e r a l R e se r v e B u l l e t i n 153 (1976);
see B oard o f Governors v. F irst Lincolnw ood Corp., 439 U .S . 234
(1978), upholding the Board’s order. Since the Board’s denial, Bank
has increased its earnings and gross capital to assets ratio. Based on
these facts and Applicant’s commitments to further increase Bank’s
capital, the Board has determined that the conditions that warranted
the Board’s previous denial are no longer present.




H o ld in g

C om pany

B o a r d ’s a p p r o v a l u n d e r

A c t,

has

s e c tio n

a p p lie d

3 (a )(3 )

fo r

th e

o f th e

A ct

(1 2 U . S . C . § 1 8 4 2 ( a ) ( 3 ) ) t o a c q u i r e a ll o f t h e v o t i n g
s h a r e s o f S ta te F in a n c ia l S e r v ic e s , I n c ., W o r th in g to n ,
M in n e s o ta ( “ C o m p a n y ” ), a r e g is te r e d o n e b a n k h o ld ­
in g c o m p a n y , a n d t o a c q u ir e i n d i r e c t l y it s s u b s i d i a r y ,
S ta te B a n k o f W o r th in g to n , W o r th in g to n , M in n e s o ta
( “ B a n k ” ). F o l l o w i n g c o n s u m m a t i o n o f t h e p r o p o s a l ,
C o m p a n y w ill b e

liq u id a te d .

A c c o r d in g ly , th e p ro -

512

Federal R eserve Bulletin □ June 1981

p o sed

a c q u is itio n

is t r e a t e d

w h i c h b a n k c u s t o m e r s t h a t a r e n e i t h e r v e r y la r g e o r

h e r e in a s th e p r o p o s e d a c q u is itio n o f s h a r e s o f B a n k .

v e r y s m a ll f in d it p r a c t i c a l t o d o t h e ir b a n k in g b u s i ­

o f sh ares

o f C om pany

N o t i c e o f t h e a p p l i c a t i o n , a f f o r d in g o p p o r t u n i t y f o r
in te r e s te d p e r s o n s to s u b m it c o m m e n ts a n d v ie w s , h a s

n e s s . . . . ” I d ., a t 3 5 9 .
B a s e d u p o n th e fa c ts o f r e c o r d , th e B o a r d b e lie v e s

b e e n g i v e n in a c c o r d a n c e w i t h s e c t i o n 3 (b ) o f t h e A c t .

th a t

T h e t im e f o r filin g c o m m e n t s a n d v i e w s h a s e x p i r e d ,

r e le v a n t g e o g r a p h ic m a r k e t w ith in w h ic h to c o n s id e r

a n d t h e B o a r d h a s c o n s i d e r e d t h e a p p l i c a t i o n a n d a ll

t h e c o m p e t i t i v e e f f e c t s o f t h e p r o p o s a l . B a n k is l o c a t e d

c o m m e n t s r e c e i v e d , in c l u d i n g t h o s e o f t h e I n d e p e n ­

in W o r t h i n g t o n , w h i c h is t h e c o u n t y ’s l a r g e s t c o m m u ­

dent

B ankers

o f M in n e s o ta ,

and

th e

12

banks

in

N o b le s

C o u n ty ,

n it y a n d t h e c o u n t y

M in n e s o ta ,

a p p r o x im a te s

s e a t , a n d th e a r e a fr o m

th e

w h ic h

M i n n e s o t a l i s t e d in t h e A p p e n d i x ( c o l l e c t i v e l y , “ P r o t ­

p e o p l e c o m m u t e in t o W o r t h i n g t o n a p p r o x i m a t e s N o ­

e s t a n t ” ), a n d th e M in n e s o ta C o m m is s io n e r o f B a n k s ,

b l e s C o u n t y . I n a d d i t i o n , B a n k d e r i v e s v i r t u a l l y a ll o f

in lig h t o f t h e f a c t o r s s e t f o r t h in s e c t i o n 3 ( c ) o f t h e A c t

it s l o a n s a n d d e p o s i t s f r o m N o b l e s C o u n t y .
I n t h e B o a r d ’s v i e w , t h e la r g e r g e o g r a p h i c m a r k e t

(1 2 U . S . C . § 1 8 4 2 ( c ) ) .
P r o te s ta n t c o n te n d s th a t c o n s u m m a tio n o f th e p r o ­

p r o p o se d b y P r o te s ta n t, c o n s is tin g o f N o b le s C o u n ty

p o s a l w o u ld h a v e s u b s ta n tia l a n t ic o m p e titiv e e ffe c ts

a n d a d ja c e n t M u rra y a n d R o c k C o u n t ie s , M in n e s o ta ,

on

th e

is n o t s u b s t a n t i a t e d b y t h e e v i d e n c e o f r e c o r d . T h e

r e le v a n t m a r k e t. A p p lic a n t c o n tr o ls 8 6 b a n k s lo c a te d

r e c o r d i n d i c a t e s t h a t A p p l i c a n t ’s s u b s i d i a r y b a n k in

s ta te w id e

b a n k in g

str u c tu r e

as

w e ll

as

in

in 7 u p p e r m i d w e s t e r n s t a t e s w i t h t o t a l d e p o s i t s o f $ 9 .6

S l a y t o n , in M u r r a y C o u n t y , a n d it s s u b s i d i a r y b a n k in

b i l l i o n . A p p l i c a n t i s t h e s e c o n d l a r g e s t b a n k in g o r g a n i ­

L u v e r n , in R o c k C o u n t y , d o n o t d e r i v e a n y s ig n if i c a n t

z a t i o n in M i n n e s o t a , c o n t r o l l i n g 4 9 b a n k s w it h $ 5 .1

p o r t io n o f t h e ir d e p o s i t s o r l o a n s f r o m N o b l e s C o u n t y .

b il lio n in d e p o s i t s , r e p r e s e n t i n g

A p p l i c a n t ’s

a p p r o x im a te ly

2 3 .1

p e r c e n t o f t h e t o t a l c o m m e r c i a l b a n k d e p o s i t s in t h e

S la y to n

and

L uvern e

s u b s id ia r y

banks

d e r iv e o n l y 1 .8 p e r c e n t a n d 0 . 2 p e r c e n t o f t h e ir l o a n s ,

s t a t e .1 A c q u is itio n o f B a n k , w ith d e p o s it s o f a p p r o x i­

a n d 2 .4

m a t e l y $ 3 8 .9 m i l l i o n , w o u l d i n c r e a s e A p p l i c a n t ’s s h a r e

r e s p e c tiv e ly , fr o m

o f d e p o s i t s in c o m m e r c i a l b a n k s in M i n n e s o t a b y 0 . 2

o b t a in s o n l y 3 . 0 p e r c e n t o f it s l o a n s a n d 1 .6 p e r c e n t o f

p ercen t and

it s d e p o s i t s f r o m M u r r a y a n d R o c k C o u n t i e s . S l a y t o n
a n d L u v e r n e a r e t h e la r g e s t c o m m u n i t i e s in , a n d t h e

c o n c e n t r a t i o n o f c o m m e r c i a l b a n k d e p o s i t s in M i n n e ­

c o u n t y s e a t s o f , t h e ir r e s p e c t i v e c o u n t i e s . E a c h c o m ­

s o t a h e ld b y t h e t w o l a r g e s t b a n k in g o r g a n i z a t i o n s in

m u n it y is l o c a t e d 31 r o a d m i l e s f r o m B a n k a n d s e r v e s

B oard

has

exp ressed

s ta te w id e

p e r c e n t o f th e ir d e p o s it s ,

a b o u t th e

th e

n o t a lt e r it s

3 .3

N o b le s C o u n ty . M o r e o v e r , B a n k

r a n k in g .

W h il e

w o u ld

p ercen t and

concern

th e s ta te , th e B o a r d b e lie v e s th a t, g iv e n th e r e c e n t

a s a c e n te r o f e c o n o m ic a c tiv it y fo r an a r e a s e p a r a te

g e n e r a l t r e n d t o w a r d d e c o n c e n t r a t i o n in M i n n e s o t a ,

fr o m N o b le s C o u n t y .2

A p p l i c a n t ’s a c q u i s i t i o n o f B a n k w o u l d n o t r e s u l t in a
s ig n if i c a n t i n c r e a s e in s t a t e w i d e c o n c e n t r a t i o n .
The

Su p rem e

fa c to r s

to

be

g e o g r a p h ic

C ourt has

c o n s id e r e d

b a n k in g

a r t ic u la t e d

in

a num ber o f

d e t e r m in i n g

m a r k e t.

See

U n ite d

B a n k is t h e s e c o n d l a r g e s t o f n in e b a n k in g o r g a n i z a ­
t i o n s in t h e N o b l e s C o u n t y b a n k in g m a r k e t , a r u r a l

a r e le v a n t
S ta te s

v.

a g r ic u lt u r a l c o m m u n i t y , a n d c o n t r o l s a p p r o x i m a t e l y
2 4 .3 p e r c e n t o f t h e t o t a l c o m m e r c i a l b a n k d e p o s i t s in
th e m a r k e t. N o n e o f A p p lic a n t’s s u b s id ia r y b a n k s a re

P h ila d e lp h ia N a tio n a l B a n k , 3 7 4 U .S . 321 (1 9 7 0 ); s e e ,

lo c a te d

a ls o M id - N e b r a s k a B a n c s h a r e s v . B o a r d o f G o v e r ­

a b o v e , A p p l i c a n t ’s t w o

n o r s , 6 2 7 F . 2 d 2 6 6 (D .C .

B a n k are e a c h lo c a te d

in d ic a te

C ir .

th a t th e c o m p e tit iv e

1 9 8 0 ). T h e s e

e ffe c ts

ca ses

o f a p rop osed

in

th e

r e le v a n t

b a n k in g

m a r k e t.

As

n o ted

s u b s id ia r y b a n k s c lo s e s t to
31 r o a d m i l e s f r o m

B a n k in

s e p a r a t e b a n k in g m a r k e t s . M o r e o v e r , it d o e s n o t a p ­

m e r g e r o r a c q u i s i t i o n s h o u l d b e j u d g e d in a l o c a l i z e d

p e a r t h a t A p p l i c a n t ’s t h r e e n o n b a n k i n g s u b s i d i a r i e s

m a r k e t in

c o m p e te

w h ic h

banks

o f f e r t h e ir

s e r v ic e s

and

to

to

any

s ig n ific a n t

e x te n t

in

th e

r e le v a n t

w h i c h l o c a l c u s t o m e r s c a n p r a c t i c a b l y tu r n f o r a lt e r n a ­

m a r k e t. T h u s , n o e x is t in g c o m p e titio n w o u ld b e e lim i­

t i v e s . T h e S u p r e m e C o u r t h a s s t a t e d in t h is r e g a r d th a t

n a te d b y c o n s u m m a t io n o f th e p r o p o s a l.

“ t h e p r o p e r q u e s t i o n is n o t w h e r e t h e p a r t ie s t o t h e

P r o te s ta n t c o n te n d s th a t th e p r o p o s e d a c q u is itio n

m e r g er d o b u s in e s s o r e v e n w h e r e th e y c o m p e te , b u t
w h e r e , w it h in t h e a r e a o f c o m p e t i t i v e

o v e r la p , th e

e ffe c t o f th e m e r g e r o n c o m p e tit io n w ill b e d ir e c t a n d
im m e d ia te .”

U n ite d S ta t e s v . P h ila d e lp h ia N a tio n a l

B a n k , s u p r a , 3 7 4 U . S . a t 3 5 7 . I n d e t e r m in i n g t h is a r e a ,
t h e S u p r e m e C o u r t s o u g h t “ t o d e l i n e a t e t h e a r e a s in

1. All banking data are as of December 31, 1979.



2.
Protestant also asserts that it has been informed by bankers in
the three-county area that banks in N obles County are influenced by
changes in rates and services made by banks in Rock and Murray
Counties and that banks in Rock and Murray Counties are influenced
by banks in N obles County. These statements are unsupported by any
empirical data. In any event, such influence, even if demonstrated, is
not inconsistent with the Board’s finding that the relevant market is
approximated by N obles County, since, as the Board has recently
noted, geographic markets are usually not totally devoid of some
influence from adjacent markets. Independent Bank Corporation, 67
F e d e r a l R e se r v e B u l l e t i n 436 (1981).

Legal Developm ents

c o m m u n itie s

w i l l e l i m i n a t e s i g n if i c a n t p o t e n t i a l c o m p e t i t i o n in t h e

o th e r

N o b l e s C o u n t y b a n k in g m a r k e t . W h il e A p p l i c a n t a p ­

s u b s e q u e n t e n t r y b y o t h e r b a n k in g o r g a n i z a t i o n s . 6 I n

M in n e s o ta

lig h t
have

any

s u b s ta n tia lly

ad v erse

it

is

th e

d e te r re d

j u d g m e n t t h a t c o n s u m m a t i o n o f t h e p r o p o s a l w ill n o t

tio n .7

o f record,

not

C o u n t y b a n k in g m a r k e t d e n o v o , in t h e B o a r d ’s j u d g ­
m e n t , t h e m a r k e t is n o t a t t r a c t i v e f o r d e n o v o e n t r y .

fa c ts

has

p e a r s to h a v e th e s iz e a n d a b ility to e n te r th e N o b le s

N o b l e s C o u n t y ’s p o p u l a t i o n d e c l i n e d 6 . 5 p e r c e n t b e ­

o f a ll t h e

in

513

effe c ts

on

B o a r d ’s
c o m p e ti­

1 9 8 0 . In a d d itio n , w h ile M in n e s o ta

C o n s i d e r a t i o n s r e l a t in g t o t h e f in a n c ia l a n d m a n a g e ­

n o n m e t r o p o l i t a n c o u n t i e s a v e r a g e o n e b a n k in g o f f ic e

r ia l r e s o u r c e s a n d f u t u r e p r o s p e c t s o f B a n k , A p p l i ­

fo r

c a n t,

tw e e n

1970 an d

each

2 ,5 2 4

r e s id e n ts ,

N o b le s

C o u n ty

has

one

b a n k in g o f f ic e f o r e a c h 1 ,8 0 8 r e s i d e n t s . 3 A c c o r d i n g l y ,
th e

B oard

is

u n a b le

to

c o n c lu d e

t h a t A p p l i c a n t is

and

A p p l i c a n t ’s

s u b s id ia r ie s

are

regarded

as

s a tis fa c to r y .
T h e r e c o r d in d ic a te s th a t fo llo w in g c o n s u m m a tio n

r e a s o n a b l y l i k e l y t o e n t e r t h e N o b l e s C o u n t y b a n k in g

A p p l i c a n t i n t e n d s t o in t r o d u c e a n u m b e r o f n e w

m arket de n o v o .

e x p a n d e d s e r v i c e s a t B a n k . A p p l i c a n t w i l l m a k e a fu ll

M o r e o v e r , in t h e B o a r d ’s v i e w , it is u n l i k e l y t h a t

or

r a n g e o f t r u s t s e r v i c e s a v a i l a b l e t o B a n k ’s c u s t o m e r s .

A p p lic a n t w o u ld e n te r th e r e le v a n t m a r k e t b y m e a n s

I n a d d i t i o n , a f f ilia t io n w i t h A p p l i c a n t w i l l a s s i s t B a n k

o f a f o o t h o l d a c q u i s i t i o n o f a s m a l l e r b a n k . B a n k is t h e

in o r ig in a t in g F H A , V A , a n d c o n v e n t i o n a l m o r t g a g e

s m a l l e s t o f t h e t w o b a n k s n o w l o c a t e d in W o r t h i n g t o n ,

l o a n s , in m a k in g s p e c i a l i z e d a g r ic u lt u r a l l o a n s , a n d in

t h e c o u n t y s e a t a n d l a r g e s t c o m m u n i t y in t h e m a r k e t .

p r o v id i n g l e a s i n g s e r v i c e s t o f a r m e r s a n d b u s i n e s s e s .

T h e la r g e r b a n k l o c a t e d in W o r t h i n g t o n is a s u b s id ia r y

F in a lly ,

o f th e

sta te .

c a n a s s is t B a n k to m e e t th e n e e d s o f lo c a l b u s in e s s e s

la r g e s t b a n k

h o ld in g

com pany

in

th e

A p p l i c a n t ’s

c o m m e r c ia l

fin a n c e

s u b s id ia r y

M o r e o v e r , M i n n e s o t a ’s b r a n c h in g l a w p r e c l u d e s A p ­

f o r f in a n c in g t o b e s e c u r e d b y a c c o u n t s r e c e i v a b l e ,

p l i c a n t ’ s t w o b a n k in g s u b s i d i a r i e s in a d j a c e n t m a r k e t s

in v e n t o r y , e q u ip m e n t, a n d a v a r ie ty o f o th e r c o lla te r ­

fr o m

a l. A p p l i c a n t ’s p r o v i s i o n o f s u c h n e w a n d e x p a n d e d

e s t a b l i s h i n g a b r a n c h in W o r t h i n g t o n ’s c e n t r a l

b u s i n e s s d i s t r i c t o r in s e c o n d a r y c o m m e r c i a l a r e a s in

s e r v ic e s w ill e n a b le B a n k to c o m p e t e m o r e e ffe c t iv e ly

W o r th in g to n .4 B a s e d

an d o th er fa c ts o f

w it h t h e l a r g e s t b a n k in W o r t h i n g t o n , w h i c h is a f f ilia t ­

r e c o r d , t h e B o a r d is u n a b l e t o c o n c l u d e t h a t c o n s u m ­

e d w it h t h e s t a t e ’s l a r g e s t h o l d i n g c o m p a n y . T h u s ,

m a t io n

o f th e

c o n s i d e r a t i o n s r e l a t in g t o t h e c o n v e n i e n c e a n d n e e d s

e ffe c ts

upon

upon

th ese

p r o p o s a l w o u ld
p o te n tia l

have

c o m p e tit io n

any
in

s ig n if i c a n t

any

r e le v a n t

P r o te s ta n t a ls o a lle g e s th a t th e p r o p o s a l w o u ld b e
a n t i c o m p e t i t i v e in t h a t it w o u l d s e r v e t o “ e n t r e n c h ”
A p p lic a n t,

o f th e c o m m u n ity to b e s e r v e d le n d w e ig h t to w a r d
a p p r o v a l o f th e a p p lic a tio n a n d o u t w e ig h a n y a d v e r s e

a r e a .5

a p o w e r f u l b a n k in g

o r g a n iz a tio n ,

in t h e

e ffe c ts th a t m a y r e s u lt fr o m th e p r o p o s a l.
O n t h e b a s i s o f t h e r e c o r d , t h e a p p l i c a t i o n is a p ­
p r o v e d fo r th e r e a s o n s s u m m a r iz e d a b o v e . T h e tr a n s ­

m a r k e t a n d t h e r e b y w o u l d d i s c o u r a g e f u t u r e e n t r y in t o

a c t i o n s h a ll n o t b e m a d e b e f o r e t h e t h ir t ie t h c a l e n d a r

N o b l e s C o u n t y b y o t h e r o r g a n i z a t i o n s . P r o t e s t a n t ’s

d a y f o l l o w i n g t h e e f f e c t i v e d a t e o f t h is O r d e r o r la t e r

t h e o r y is n o t s u p p o r t e d b y a n y e v i d e n c e o f r e c o r d .

th a n

I n d e e d , t h e r e c o r d s h o w s t h a t A p p l i c a n t ’s p r e s e n c e in

O r d e r , u n l e s s s u c h p e r i o d is e x t e n d e d f o r g o o d c a u s e

th r e e

m o n th s

a fter

b y th e B o a r d , o r b y

th e

e ffe c tiv e

d a te

th e F e d e r a l R e s e r v e

o f t h is
B ank o f

M in n e a p o lis p u r s u a n t to d e le g a te d a u th o r ity .
3. Protestant asserts that, based on a relatively high ratio of
deposits per banking office, N obles County is moderately attractive
for de novo entry. H ow ever, based on June 30, 1980, data, the ratio of
deposits to banking offices in N obles County is about equal to the
average ratio o f deposits to banking offices for nonmetropolitan
counties in Minnesota.
4. Given the unattractiveness for de novo entry o f the market in
general and Worthington in particular, it is also unlikely that Applicant
would acquire one o f the banks in the market outside Worthington and
attempt to establish a branch in Worthington.
5. Noting that consummation o f the proposal would increase the
number o f markets in the state where the two largest statewide
organizations are present, Protestant contends that the proposed
transaction would increase the chances that these two organizations
may, because o f their direct contact in many markets, mutually agree
not to compete vigorously. This theory is not supported by any
evidence o f record. M oreover, available evidence tends to contradict
Protestant’s contentions. For example, a survey o f rates charged and
services offered by rural banks in M innesota conducted in 1975 by the
Federal Reserve Bank o f Minneapolis indicates that there is no
significant difference between prices and services established by
banks in counties with affiliates o f the two largest bank holding
companies and by banks in counties without such affiliates.




By

order

of

th e

B oard

of

G o v ern o rs,

e ffe c tiv e

M ay 27, 1981.

V o t in g f o r t h is a c t io n : C h a ir m a n V o l c k e r a n d G o v e r n o r s
W a llic h , P a r t e e , T e e t e r s , R i c e , a n d G r a m le y . A b s e n t a n d n o t
v o t in g : G o v e r n o r S c h u l t z .

(S ig n e d ) J a m e s M c A f e e ,
[s e a l]

A s s is ta n t S e c r e ta r y o f th e B o a r d .

6. Applicant has banking subsidiaries in 32 Minnesota communities
outside of the M inneapolis/St. Paul metropolitan area. Since 1955, 13
new banks have been established in 12 o f these communities.
7. The Minnesota Commissioner of Banks has submitted a detailed
analysis of the proposal, concluding that Applicant’s acquisition of
Bank would not have any significant anticompetitive effects.

514

Federal R eserve Bulletin □ June 1981

A p p e n d ix

o r g a n i z a t i o n s in M i n n e s o t a w o u l d r a is e s e r i o u s c o n ­
c e r n s w ith r e s p e c t to

th e c o n c e n tr a tio n

o f b a n k in g

r e s o u r c e s in t h e s t a t e .

L is t o f P r o te sta n ts:
H a r d w ic k S ta te B a n k ,

M a y 2 7 , 198 1

H a r d w ic k , M in n e s o ta
F a rm ers S ta te B a n k ,
K a n a r a n z i, M i n n e s o t a

T a n e y C o u n ty B a n c o r p o r a tio n , I n c .

B e a v e r C r ee k S ta te B a n k ,

K a n s a s C ity , M is s o u r i

B e a v e r C r e e k , M in n e s o ta
S t a t e B a n k o f C h a n d le r ,

O rd e r D e n y in g F o r m a tio n o f a B a n k H o ld in g

C h a n d le r , M i n n e s o t a

C om pany

C u r r ie S t a t e B a n k ,
C u r r ie , M i n n e s o t a

T aney

F ir s t N a tio n a l B a n k ,

C o u n ty

M is s o u r i,

L a k e W ils o n , M in n e s o ta

s e c tio n

F a rm ers S ta te B a n k ,

B a n c o r p o r a tio n ,

has

a p p lie d

fo r

3 (a ) (1 )

o f th e

B ank

I n c .,

B o a r d ’s

K an sas

app roval

H o ld in g

C ity ,
under

C om pany

A ct

(1 2 U . S . C . § 1 8 4 2 (a ) (1 )) o f f o r m a t io n o f a b a n k h o ld in g

R o u n d L a k e , M in n e s o ta

com pany

F ir s t S ta te B a n k ,

by

a c q u ir in g

9 1 .4

percen t

o f th e

v o tin g

s h a r e s o f S e c u r ity B a n k a n d T r u st C o m p a n y , B r a n s o n ,

R u s h m o r e , M in n e s o ta

M i s s o u r i ( “ B a n k ” ).

E lls w o r th S ta te B a n k ,

N o t i c e o f t h e a p p l i c a t i o n , a f f o r d in g a n o p p o r t u n i t y

E lls w o r th , M in n e s o ta

fo r in t e r e s t e d p e r s o n s to s u b m it c o m m e n t s a n d v ie w s ,

F ir s t N a tio n a l B a n k ,

h a s b e e n g i v e n in a c c o r d a n c e w i t h s e c t i o n 3 (b ) o f t h e

B r e w s te r , M in n e s o ta

A c t.

S ta te B a n k o f L is m o r e ,

The

t im e

fo r

filin g

co m m en ts

and

v ie w s

has

e x p ir e d , a n d th e B o a r d h a s c o n s id e r e d th e a p p lic a tio n

L is m o r e , M in n e s o ta

a n d a ll c o m m e n t s r e c e i v e d in l ig h t o f t h e f a c t o r s s e t

F ir st N a tio n a l B a n k ,

f o r t h in s e c t i o n 3 ( c ) o f t h e A c t (1 2 U . S . C . § 1 8 4 2 ( c ) ) .

W ilm o n t, M in n e s o ta

A p p lic a n t p r o p o s e s

to

becom e

th e

su ccesso r

by

m e r g e r t o f o u r c o m p a n i e s , e a c h o f w h i c h is w h o l l y ow ned

by

one

of

A p p l i c a n t ’s

fo u r

p r in c ip a ls

and

C o n c u r r in g S ta t e m e n t o f G o v e r n o r T e e te r s

c u r r e n t ly o w n s a p p r o x i m a t e l y 2 3 p e r c e n t o f t h e v o t i n g

I n m y o p i n i o n t h is p r o p o s a l , w h i c h i n v o l v e s t h e a c q u i ­

U p o n a c q u is itio n o f B a n k , A p p lic a n t w o u ld c o n tr o l

s h a r e s o f B a n k , w h i c h h o l d s d e p o s i t s o f $ 3 7 . 7 m i l l i o n 1.
s i t i o n o f B a n k ( s e c o n d la r g e s t o f n in e b a n k in g o r g a n i­

th e

z a t i o n s in t h e N o b l e s C o u n t y b a n k in g m a r k e t , w it h

a p p r o x im a te ly

d e p o s i t s o f $ 3 8 . 9 m i l lio n ) b y M i n n e s o t a ’s s e c o n d la r g ­

b a n k d e p o s i t s in t h e s t a t e .

e s t b a n k h o ld in g c o m p a n y , m a y s e r v e to s lo w o r e v e n

1 4 7 th l a r g e s t b a n k in M i s s o u r i a n d w o u l d h o ld

B ank

is

0 .2

th e

p ercent

secon d

o f th e

to ta l c o m m e r c ia l

la r g e s t o f t h r e e

c o m m e r c ia l

t o r e v e r s e t h e r e c e n t t r e n d in M i n n e s o t a t o w a r d d e ­

b a n k s in t h e T a n e y C o u n t y b a n k in g m a r k e t , a n d h o l d s

c o n c e n t r a t i o n o f s t a t e w i d e b a n k in g r e s o u r c e s . M i n n e ­

a p p r o x im a te ly

s o t a i s n o w t h e m o s t h i g h l y c o n c e n t r a t e d u n it b a n k in g

c o m m e r c ia l

s t a t e in t h e n a t i o n in t e r m s o f t h e c o n c e n t r a t i o n o f

p r in c ip a ls o f A p p l i c a n t a r e a s s o c i a t e d w i t h t h r e e o t h e r

d e p o s i t s h e ld b y t h e t w o la r g e s t b a n k in g o r g a n i z a t i o n s

bank

in

o p e r a t e s b a n k s t h a t c o m p e t e in t h e r e l e v a n t b a n k in g

u n it

b a n k in g

sta te s,

and

ranks

1 2 th

am ong

a ll

h o ld in g

in

th e

c o m p a n ie s ,

upon

fa c ts

c o m p e tit io n ,

of

c o m p a n ie s

m a r k e t.

e ffe c ts

th e

o f th ese

c o n s u m m a t i o n o f t h e p r o p o s a l w o u l d n o t r e s u l t in a n y

o f th e

fr o m

none

m a r k e t . 2 W h il e

s t a t e s . 1 H o w e v e r , in lig h t o f a ll o f t h e f a c t s o f r e c o r d in
u n a ttr a c tiv e n e s s

ap p ears

r e le v a n t

t h is i n s t a n c e , in c l u d i n g

th e

It

3 3 .2 p e r c e n t o f t h e t o t a l d e p o s i t s in

banks

in c r e a s e

th a t

m a r k e t f o r d e n o v o e n t r y , I a g r e e w it h t h e m a j o r i t y ’s

a d v erse

a c t i o n in a p p r o v in g t h is p r o p o s a l . N e v e r t h e l e s s , in m y

c o n c e n tr a tio n

v ie w , a n y s u b s e q u e n t a c q u is itio n s o f M in n e s o ta b a n k s

a r e a . A c c o r d in g ly , th e B o a r d c o n c lu d e s th a t c o m p e ti-

o f b a n k in g r e s o u r c e s

or

record

in t h e

th e

r e le v a n t

t h a t a r e g o i n g c o n c e r n s b y t h e t w o l a r g e s t b a n k in g

1.
The top four banking organizations in M innesota hold 26.8, 23.1,
2.6, and 1.9 percent, respectively, o f the state’s commercial bank
deposits. Minnesota is also the most highly concentrated unit banking
state in terms o f three- and four-firm concentration, and ranks 13th
and 21st respectively, among all states.




1. All banking data are as o f June 30, 1980.
2. The Taney County banking market is approximated by Taney
County, Missouri.

Legal D evelopm ents

tiv e c o n s id e r a t io n s a r e c o n s is t e n t w ith a p p r o v a l o f th e

515

V o t in g f o r t h is a c t io n : C h a ir m a n V o l c k e r a n d G o v e r n o r s
S c h u lt z , P a r t e e , T e e t e r s , a n d R i c e . A b s e n t a n d n o t v o t in g :

a p p lic a tio n .
T h e B o a r d h a s in d ic a te d o n p r e v io u s o c c a s io n s th a t

G o v e r n o r s W a llic h a n d G r a m le y .

a h o ld in g c o m p a n y s h o u l d s e r v e a s a s o u r c e o f f in a n ­
c ia l a n d m a n a g e r ia l s t r e n g t h t o it s s u b s i d i a r y b a n k ( s ) ,
a n d th a t th e B o a r d w o u ld c lo s e l y e x a m in e th e c o n d i­

(S ig n e d ) D . M i c h a e l M a n i e s ,
[s e a l]

A s s is ta n t S e c r e ta r y o f th e B o a r d .

t io n o f a n a p p l i c a n t in e a c h c a s e w i t h t h is c o n s i d e r ­
a t io n in m in d . I n t h i s c a s e t h e B o a r d c o n c l u d e s t h a t
c o n s i d e r a t i o n s r e l a t i n g t o t h e f in a n c ia l r e s o u r c e s a n d

O r d e r s U n d e r S e c tio n 4 o f B a n k H o ld in g

f u t u r e p r o s p e c t s o f A p p l i c a n t a n d B a n k w a r r a n t d e n ia l

C om pany A ct

o f t h e a p p l i c a t i o n . T h e f in a n c ia l a n d m a n a g e r ia l r e ­
sou rces

a n d fu tu r e p r o s p e c t s

o f th e

o t h e r b a n k in g

o r g a n i z a t i o n s a f f ilia t e d w i t h A p p l i c a n t a n d B a n k a r e

F ir s t U n io n B a n c o r p o r a tio n ,
S t. L o u is , M is s o u r i

c o n s id e r e d g e n e r a lly s a tis fa c to r y .
W it h r e s p e c t t o A p p l i c a n t ’s a n d B a n k ’s f in a n c ia l

O rd e r A p p r o v in g I n su ra n c e A g e n c y A c tiv itie s

c o n s id e r a tio n s a n d fu tu r e p r o s p e c t s , th e B o a r d n o te s
t h a t in c o n n e c t i o n w i t h t h i s p r o p o s a l A p p l i c a n t w o u l d

F ir s t U n io n B a n c o r p o r a t io n ( “ A p p lic a n t ” ), S t. L o u is ,

in c u r a s i z e a b l e d e b t . I n a d d i t i o n , A p p l i c a n t p r o p o s e s

M i s s o u r i , a b a n k h o l d i n g c o m p a n y w i t h i n t h e m e a n in g

to

o f th e

is s u e

p r e fe rr e d

sto c k

to

th e

fo r m e r

c o n tr o llin g

B ank

H o ld in g

C om pany

A ct

( “ A c t ” ),

has

s h a r e h o l d e r s o f B a n k , a n d t o c a u s e B a n k t o i s s u e $ 1 .1

a p p lie d

m il lio n

(1 2 U . S . C . § 1 8 4 3 ( c ) ( 8 ) ) a n d s e c t i o n 2 2 5 . 4 ( b ) ( 1 ) o f t h e

in

c a p ita l,

c o n s is tin g

of

$500

th o u sa n d

in

p u rsu a n t

to

s e c tio n

4 (c )(8 )

of

th e

A ct

c o m m o n s t o c k a n d t h e r e m a in in g $ 6 0 0 t h o u s a n d e i t h e r

B o a r d ’s R e g u l a t i o n

in t h e f o r m o f c a p i t a l n o t e s o r p r e f e r r e d s t o c k . A f t e r

e n g a g e d e n o v o , t h r o u g h it s s u b s i d i a r y , R e d b u d I n s u r ­

Y

(1 2

C .F .R .

§ 2 2 5 .4 (b )( 1 )),

to

c o n s i d e r i n g A p p l i c a n t ’s p r o p o s a l a n d p o s s i b l e v a r ia ­

a n c e A g e n c y , I n c . ( “ A g e n c y ” ) , in t h e s a l e o f p r o p e r t y

t i o n s in B a n k ’s a s s e t g r o w t h a n d e a r n in g s c a p a b i l i t i e s ,

a n d c a s u a lty in s u r a n c e d ir e c tly r e la te d to e x t e n s io n s

it is t h e B o a r d ’ s j u d g m e n t t h a t A p p l i c a n t w o u l d l a c k

o f c r e d i t b y A p p l i c a n t ’s b a n k in g s u b s i d i a r i e s in M i s ­

s u f f i c ie n t f l e x i b i l i t y t o s e r v i c e it s d e b t , m a in t a in a d e ­

s o u r i. S u c h n o n b a n k a c t i v i t i e s h a v e b e e n d e t e r m i n e d

q u a t e c a p i t a l in B a n k , a n d m e e t a n y u n f o r e s e e n p r o b ­

b y th e B o a r d to b e c lo s e ly

le m s t h a t m ig h t a r i s e a t B a n k . A c c o r d i n g l y , t h e B o a r d

th e r e fo r e

is o f t h e o p i n i o n t h a t t h e c o n s i d e r a t i o n s r e l a t in g t o

(1 2 C . F . R . § 2 2 5 . 4 ( a ) ( 9 ) ) .

p e r m is s ib le

fo r

r e la te d

bank

t o b a n k in g a n d

h o ld in g

c o m p a n ie s

f in a n c ia l r e s o u r c e s a n d f u t u r e p r o s p e c t s o f A p p l i c a n t

N o t i c e o f t h e a p p l i c a t i o n , a f f o r d in g o p p o r t u n i t y f o r

a n d B a n k w e ig h a g a in s t a p p r o v a l o f th e a p p lic a tio n .

in te r e s te d p e r s o n s to su b m it c o m m e n t s a n d v ie w s o n

M a n a g e r ia l r e s o u r c e s o f A p p lic a n t a n d B a n k a re g e n ­

t h e p u b lic i n t e r e s t f a c t o r s , h a s b e e n d u ly p u b l i s h e d . 4 5

e r a l ly s a t i s f a c t o r y a n d w o u l d b e c o n s i s t e n t w it h a p ­

F e d e ra l R e g is te r

p r o v a l.

c o m m e n t s a n d v ie w s h a s e x p ir e d , a n d th e a p p lic a tio n

No

65308

(1 9 8 0 ).

The

tim e

fo r

f ilin g

s i g n if i c a n t c h a n g e s in t h e s e r v i c e s o f f e r e d b y

a n d a ll c o m m e n t s r e c e i v e d , i n c l u d i n g t h o s e r e c e i v e d

B a n k a re e x p e c t e d to fo llo w fr o m c o n s u m m a tio n o f

fr o m th e I n d e p e n d e n t I n s u r a n c e A g e n ts o f A m e r ic a ,

th e p r o p o s e d tr a n s a c tio n . C o n s e q u e n tly , c o n v e n ie n c e

In c . a n d th e I n d e p e n d e n t I n s u r a n c e A g e n ts o f M is s o u ­

a n d n e e d s f a c t o r s a r e c o n s i s t e n t w i t h , b u t le n d n o

ri ( “ P r o t e s t a n t s ” ) , h a v e b e e n c o n s i d e r e d .

w e ig h t to w a r d , a p p r o v a l o f th is a p p lic a tio n .

A p p l i c a n t is t h e s e c o n d l a r g e s t b a n k in g o r g a n i z a t i o n

O n t h e b a s i s o f t h e c i r c u m s t a n c e s c o n c e r n i n g t h is
a p p lic a tio n ,

th e

B oard

c o n c lu d e s

th a t th e

in M i s s o u r i . T h r o u g h it s 2 0 s u b s i d i a r y b a n k s l o c a t e d

b a n k in g

s t a t e w i d e , A p p l i c a n t h o l d s $ 2 . 6 b i l l i o n in c o m b i n e d

c o n s i d e r a t i o n s i n v o l v e d in t h is p r o p o s a l p r e s e n t a d ­

t o t a l d e p o s i t s , r e p r e s e n t i n g 1 0 .3 p e r c e n t o f t o t a l c o m ­

v e r s e f a c t o r s b e a r in g u p o n t h e f in a n c ia l r e s o u r c e s a n d

m e r c ia l b a n k

fu tu r e p r o s p e c t s o f A p p lic a n t a n d B a n k . S u c h a d v e r s e

p o s e s to s e ll p r o p e r ty a n d c a s u a lty in s u r a n c e th ro u g h

d e p o s its

in

th e

s t a t e .1 A p p lic a n t p r o ­

p r o c o m p e titiv e

it s s u b s id ia r y , R e d b u d I n s u r a n c e A g e n c y , I n c . , a t 5 2

e ffe c ts o r b y b e n e fits to th e c o n v e n ie n c e a n d n e e d s o f

b a n k in g o f f i c e s o f A p p l i c a n t l o c a t e d t h r o u g h o u t M i s ­

fa c to r s

are

n o t o u tw e ig h e d

by

any

t h e c o m m u n i t y . A c c o r d i n g l y , it is t h e B o a r d ’s j u d g ­

s o u r i. A f t e r c r e d i t h a s b e e n g r a n t e d , A p p l i c a n t ’s l e n d ­

m e n t t h a t a p p r o v a l o f t h e a p p l i c a t i o n w o u l d n o t b e in

in g o f f ic e r s w i l l a d v i s e t h e c u s t o m e r t h a t A p p l i c a n t ’s

th e

in s u r a n c e a g e n c y o f f e r s i n s u r a n c e c o v e r a g e a n d , a f t e r

p u b lic

in te r e st

and

th e

a p p lic a tio n

s h o u ld

be

d e n ie d .
O n t h e b a s i s o f t h e f a c t s o f r e c o r d , t h e a p p l i c a t i o n is
d e n ie d fo r th e r e a s o n s s u m m a r iz e d a b o v e .
By

order

of

th e

M a y 14, 1981.




B oard

of

G o v ern o rs,

e ffe c tiv e

1. Deposit data are as of December 31, 1979, and reflect holding
company acquisitions approved through September 15, 1980.

516

Federal R eserve Bulletin □ June 1981

o b t a in in g t h e b o r r o w e r ’s c o n s e n t t o o b t a i n i n s u r a n c e

in s u r a n c e a n d h a s f o u n d s u c h a l l e g a t i o n s t o b e u n w a r ­

th ro u g h

r a n t e d . 4 M o r e o v e r , a t t h e t im e t h e a c t i v i t y o f s e l l i n g

A p p lic a n t,

w ill

p r o v id e

R edbud

In su ran ce

A g e n c y , I n c . w i t h s u f f i c i e n t i n f o r m a t io n t o m a k e t h e

c r e d it

o ffe r o f in s u r a n c e c o v e r a g e to th e c u s to m e r .

p e r m is s ib le a c t iv it ie s fo r b a n k h o ld in g c o m p a n ie s , th e

r e la te d

in s u r a n c e

w as

ad d ed

to

th e

lis t

of

S e c tio n 4 (c )(8 ) o f th e A c t p r o v id e s th a t th e B o a r d

B o a r d d e te r m in e d th a t, a b s e n t u n u s u a l c ir c u m s t a n c e s

m a y a p p r o v e a b a n k h o l d i n g c o m p a n y ’s a p p l i c a t i o n t o

a s s o c i a t e d w i t h a p a r t ic u l a r a p p l i c a t i o n , t h e r e a r e a s a

e n g a g e in a n o n b a n k i n g a c t i v i t y o n l y a f t e r t h e B o a r d

g e n e r a l m a tte r n o s ig n ific a n t a d v e r s e e f f e c t s , s u c h a s

h a s d e t e r m i n e d t h a t t h e p r o p o s e d a c t i v i t y is s o c l o s e l y

v o l u n t a r y t y i n g , i n h e r e n t in t h e p e r f o r m a n c e o f t h is

r e l a t e d t o b a n k in g a s t o b e a p r o p e r i n c i d e n t t h e r e t o .

a c tiv ity b y

T h e B o a r d h a s d e t e r m i n e d b y r e g u l a t i o n t h a t t h e s a le

b a s i s . W it h r e g a r d t o t h is a p p l i c a t i o n , A p p l i c a n t h a s

a b a n k h o ld in g c o m p a n y

on a de novo

a s a g e n t o f c r e d i t - r e l a t e d i n s u r a n c e is a p e r m i s s i b l e

m a d e c e r ta in c o m m it m e n ts th a t e lim in a te a n y p o s s i b il­

n o n b a n k a c t i v i t y . T h is d e t e r m i n a t i o n w a s a f f ir m e d in

it y o f c o e r c i v e o r v o l u n t a r y t y i n g a s a n a d v e r s e e f f e c t .

A la b a m a A s s o c ia tio n o n I n su ra n c e A g e n ts v . B o a r d o f

S p e c ific a lly , A p p lic a n t h a s c o m m itte d to o b s e r v e s e c ­

G o v e r n o r s .2

t io n 1 0 6 o f t h e B a n k H o l d i n g C o m p a n y A c t , 12 U . S . C .

T o a p p r o v e a n a p p lic a tio n u n d e r s e c t io n 4 (c )(8 ) o f

§ 1 9 7 1 -7 8 , a n d s e c t io n 2 2 5 .4 (c ) o f th e B o a r d ’s R e g u la ­

th e

t io n Y , 12 C . F . R . § 2 2 5 . 4 ( c ) , w h i c h p r o h ib it c o e r c i v e

p e r fo r m a n c e o f th e p r o p o s e d a c tiv ity b y a n o n b a n k

t ie - i n a r r a n g e m e n t s . A p p l i c a n t a l s o h a s c o m m i t t e d t h a t

s u b s id ia r y o f a b a n k h o l d i n g c o m p a n y c a n r e a s o n a b l y

it w i l l in f o r m c r e d i t c u s t o m e r s t h a t i n s u r a n c e i s a v a i l ­

th e

A c t,

th e

B oard

m u st

a ls o

d e te r m in e

th a t

b e e x p e c t e d t o p r o d u c e b e n e f i t s t o t h e p u b lic s u c h a s

a b le f r o m t h e s u b s i d i a r y o n l y a f t e r t h e c u s t o m e r h a s

g r e a t e r c o n v e n i e n c e , i n c r e a s e d c o m p e t i t i o n , o r g a in s

b e e n a d v is e d th a t c r e d it h a s b e e n g r a n te d . A p p lic a n t

in e f f i c i e n c y , t h a t o u t w e i g h p o s s i b l e a d v e r s e e f f e c t s ,

h a s f u r t h e r c o m m i t t e d t h a t it w i l l a d v i s e e a c h c u s t o m e r

s u c h a s u n d u e c o n c e n tr a tio n o r r e s o u r c e s , d e c r e a s e d

in w r it in g t h a t t h e c u s t o m e r m a y c h o o s e t h e s o u r c e o f

o r u n f a ir c o m p e t i t i o n , c o n f l i c t s o f i n t e r e s t s , o r u n ­

a n y in s u r a n c e .

s o u n d b a n k in g p r a c t i c e s . C o n s u m m a t i o n o f t h is p r o ­

T h e p o s s i b i l i t y o f v o l u n t a r y t y i n g a l s o is s i g n i f i c a n t ­

p o s a l w ill a d d a n a d d itio n a l c o m p e tit o r to th e m a r k e t

ly r e d u c e d b y t h e n u m b e r o f c r e d i t a l t e r n a t i v e s in t h e

fo r p r o p e r ty a n d c a s u a lty in s u r a n c e b e c a u s e A p p lic a n t

r e l e v a n t m a r k e t s . T h e r e a r e 3 o r m o r e b a n k in g o r g a n i ­

seeks

z a t i o n s in a ll o f t h e

to

B ecau se

expand
de novo

it s

in s u r a n c e

e x p a n s io n

a c tiv it ie s

p r o v id e s

de

novo.

a n a d d it io n a l

c o m p e te s,

as

w e ll

14 m a r k e t s in w h i c h A p p l i c a n t
as

a

num ber

o f o th e r

f in a n c ia l

s o u r c e o f c o m p e tit io n , th e B o a r d v ie w s s u c h e x p a n ­

in t e r m e d i a r i e s , s u c h a s s a v i n g s a n d l o a n a s s o c i a t i o n s

s i o n a s b e i n g p r o c o m p e t i t i v e in t h e a b s e n c e o f e v i ­

a n d c r e d i t u n i o n s . 5 M o r e o v e r , A p p l i c a n t d o e s n o t h o ld

d e n c e to th e c o n tr a r y .3 M o r e o v e r , A p p lic a n t h a s c o m ­

m o r e th a n 22 p e r c e n t o f to ta l c o m m e r c ia l b a n k d e p o s ­

m it t e d t o o f f e r i n s u r a n c e a t t h e l o w e s t p r a c t i c a b l e c o s t

it s in a n y

to th e c u s to m e r , w h ic h is r e g a r d e d a s a c o m m it m e n t to

A p p l i c a n t d o e s n o t a p p e a r t o b e t h e d o m i n a n t o r g a n i­

o f f e r t h e l o w e s t p r a c t i c a b l e t o t a l c o s t ( in c l u d in g t h e

z a t i o n in a n y o f t h e s e m a r k e t s .

c o s t o f b il lin g ) , in r e l a t i o n t o p o l i c y b e n e f i t s . A c c o r d ­

o f M i s s o u r i ’s 5 m a j o r u r b a n

areas,

and

I t h a s b e e n d e t e r m i n e d t h a t c o n s u m m a t i o n o f t h is

in g l y , t h e d e n o v o n a t u r e o f t h is p r o p o s a l a n d A p p l i ­

p r o p o s a l a s d e s c r ib e d

c a n t ’s c o m m i t m e n t t o o f f e r i n s u r a n c e a t t h e l o w e s t

e x p e c t e d to p r o d u c e a n y u n d u e c o n c e n tr a tio n o f r e ­

h e r e in

c a n n o t r e a s o n a b ly

be

p r a c t i c a b l e c o s t t o t h e c u s t o m e r r e p r e s e n t c l e a r p u b lic

s o u r c e s , d e c r e a s e d o r u n f a ir c o m p e t i t i o n , c o n f l i c t s o f

b e n e fits .
P r o t e s t a n t s a s s e r t t h a t A p p l i c a n t ’s p r o p o s a l w o u l d
r e s u lt in a d v e r s e e f f e c t s t h a t a r e “ in h e r e n t in b a n k
h o ld in g

com pany

s a le s

o f in s u r a n c e

in c o n j u n c t i o n

w it h e x t e n s i o n s o f c r e d i t . ” T h e B o a r d h a s c o n s i d e r e d
s im ila r g e n e r a l a l l e g a t i o n s o f a d v e r s e e f f e c t s in c o n ­
n e c t i o n w i t h o t h e r a p p l i c a t i o n s b y b a n k h o ld in g c o m ­
p a n i e s t o e n g a g e in t h e s a l e o f p r o p e r t y a n d c a s u a l t y

2. 533 F.2d 224 (5th Cir. 1976), modified on rehearing, 558 F.2d 729
(1977), cert, denied, 435 U .S . 904 (1978).
3. BankAmerica Corporation (Decimus Corporation), 66 F e d e r a l
R e se r v e B u l l e t i n 511 (1980); Citicorp (Person to Person), 65
F e d e r a l R e se r v e B u l l e t i n 507 (1979). The Court o f Appeals for
the District o f Columbia Circuit affirmed the Board’s conclusions
regarding the procompetitive nature o f de novo entry in Connecticut
Bankers A ssn. v. B oard o f Governors, 627 F.2d 245 (D.C. Cir. 1980).




4. Virginia N ational Bankshares, Inc., 66 F e d e r a l R e se r v e B u l­
l e t i n 668 (1980); M ercantile Bancorporation, Inc., 66 F e d e r a l
R e se r v e B u l l e t i n 799 (1980). In Virginia N ational, the Board also
considered and rejected several other arguments that Protestant,
Independent Insurance Agents o f America, routinely advances before
the Board and the courts. It appears unnecessary to repeat the
Board’s reasoning on these points, and this order adopts that reason­
ing.
Protestants’ assertion that Applicant has understated its projections
o f the net earnings of Redbud Insurance Agency, Inc. resulting from
its insurance sales presumably reflects Protestants’ concern that
Applicant would take away some o f the market share of independent
insurance agents. Yet “ that kind o f impact is only the obverse o f the
coin in com petition,” and does not require a hearing. Connecticut
Bankers A s s ’n v. B oard o f Governors, 627 F.2d at 256.
5. Eleven o f these 14 markets have 5 or more banks. In the 2
Missouri markets that have total bank deposits of $1 billion or more
(St. Louis and Kansas City), Applicant faces competition from,
respectively, 83 and 99 other banking organizations located in the
market.

Legal Developm ents

517

i n t e r e s t s , u n s o u n d b a n k in g p r a c t i c e s o r o t h e r a d v e r s e

a c t in g p u r s u a n t t o d e l e g a t e d a u t h o r i t y f o r t h e B o a r d o f

e f f e c t s . P u b lic b e n e f i t s c a n r e a s o n a b l y b e e x p e c t e d t o

G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s t e m , e ffe c tiv e

r e s u lt f r o m t h is p r o p o s a l , a n d t h e y a r e e a s i l y s u f f i c ie n t

M a y 15, 1981.

to o u tw e ig h a n y p o s s i b le a d v e r s e e f f e c t s , w h ic h h a v e
b e e n f o u n d , in a n y e v e n t , t o b e u n l i k e l y t o o c c u r .
I n d e e d , t h e d e n o v o n a t u r e o f t h is p r o p o s a l a l o n e is

(S ig n e d ) D . M i c h a e l M a n i e s ,
[s e a l]

A s s i s t a n t S e c r e ta r y o f th e B o a r d .

s u f f i c ie n t t o o u t w e i g h t h e a d v e r s e e f f e c t s a l l e g e d b y
P r o t e s t a n t s . A c c o r d i n g l y , in v i e w o f t h e f o r e g o i n g a n d
t h e B o a r d ’s o r d e r in

V ir g in ia N a t io n a l B a n k s h a r e s

I n c . , s u p r a , it h a s b e e n d e t e r m i n e d t h a t P r o t e s t a n t s ’

S e a fir s t C o r p o r a tio n ,
S e a ttle , W a s h in g to n

c o m m e n t s a r e w i t h o u t m e r it .
A l t h o u g h P r o t e s t a n t s r e q u e s t a h e a r in g w i t h r e g a r d
to

t h is

a p p lic a tio n ,

P r o te sta n ts

advan ce

th e

sam e

O rd e r A p p r o v in g I s s u a n c e a n d S a le o f
T r a v e le r s C h e c k s

a r g u m e n t s t o j u s t i f y t h is r e q u e s t t h a t t h e B o a r d r e j e c t ­
ed

in

V ir g in ia

N a tio n a l.

a p p lic a tio n , th e r e

As

are n o

w as

th e

ca se

m a t e r ia l i s s u e s

th a t

S e a f ir s t

C o r p o r a tio n ,

o f f a c t in

in

h o ld in g

com pan y

d i s p u t e r e g a r d i n g A p p l i c a n t ’s p r o p o s a l . N o r e l i a n c e
h a s b e e n p la c e d

o n A p p l i c a n t ’s c l a i m s t h a t g r e a t e r

S e a ttle ,

w ith in

th e

W a s h in g to n ,
m e a n in g

a

bank

o f th e

B ank

H o l d i n g C o m p a n y A c t ( “ A c t ” ) , h a s a p p lie d f o r t h e
B o a r d ’s a p p r o v a l u n d e r

s e c tio n

4 (c )(8 )

o f th e

A ct

c o n v e n i e n c e o r e f f i c i e n c y w i l l b e a s s o c i a t e d w i t h it s

(1 2 U . S . C . § 1 8 4 3 ( c ) ( 8 ) ) , t o e n g a g e d e n o v o t h r o u g h a

p r o p o s a l . W it h r e g a r d t o P r o t e s t a n t s ’ a s s e r t i o n s r e ­

w h o l l y - o w n e d s u b s i d i a r y , S e a f ir s t P a y m e n t S e r v i c e s

g a r d in g v o l u n t a r y t y i n g a n d t h e p r ic e a t w h i c h A p p l i ­

C o r p o r a t io n ( “ C o r p o r a t i o n ” ) , in t h e i s s u a n c e a n d s a l e

c a n t w ill

o f tr a v e le r s c h e c k s .

s e ll in s u r a n c e ,

th e

B oard

is

p repared

to

e n s u r e A p p l i c a n t ’s c o m p l i a n c e w i t h t h e c o m m i t m e n t s

T h e s a le a t r e t a il o f t r a v e l e r s c h e c k s a s p r o p o s e d b y

it m a d e t o t h e B o a r d . T h e r e is n o t h i n g in A p p l i c a n t ’s

A p p l i c a n t is i n c l u d e d o n t h e B o a r d ’s l i s t o f p e r m i s s i b l e

p r io r c o n d u c t t h a t c a s t s d o u b t o n A p p l i c a n t ’s c o m m i t ­

a c t i v i t i e s f o r b a n k h o l d i n g c o m p a n i e s in R e g u l a t i o n Y

m e n t s , a n d t h e s e c o m m it m e n ts e lim in a te a n y n e e d fo r

(1 2 C . F . R . § 2 2 5 . 4 ( a ) ( 1 3 ) ) . T h e i s s u a n c e o f t r a v e l e r s

a h e a r in g in t h is r e g a r d . F i n a l l y , A p p l i c a n t h a s a s s u r e d

c h e c k s h a s n o t y e t b e e n a d d e d to th e lis t o f p e r m is s ib le

t h e B o a r d t h a t it h a s n o i n t e n t i o n o f s e l l i n g a n y t y p e o f

n o n b a n k a c t i v i t i e s ; h o w e v e r , in c o n n e c t i o n w i t h p r io r

in s u r a n c e

a p p lic a tio n s , th e B o a r d h a s d e te r m in e d b y o r d e r th a t

t h a t is

n o t p e r m is s ib le

fo r b a n k

h o ld in g

c o m p a n ie s , a n d th e r e a p p e a r s to b e n o n e e d fo r a

th e

h e a r in g r e g a r d i n g t h e s c o p e o f A p p l i c a n t ’s p r o p o s a l

r e l a t e d t o b a n k in g a n d w o u l d b e in t h e p u b l i c i n t e r e s t .

s in c e

it s

a p p lic a tio n

c o m p e tito r s

and

th e

is

s u ffic ie n tly

p u b lic

on

s p e c ific

n o tic e

to

put

r e g a r d in g

it s

a c tiv ity

o f is s u in g

tr a v e le r s

check s

is

c lo s e ly

T he C h a s e M a n h a tta n C o r p o r a tio n , 66 F e d e r a l R e ­
serv e B u lle tin

9 8 3 (1 9 8 0 ); F ir s t C h ic a g o C o r p o r a ­

i n t e n t i o n . O n t h is b a s i s , it is c o n c l u d e d t h a t a f o r m a l

ti o n ,

h e a r in g i s u n w a r r a n t e d .

C i t i c o r p , 6 5 F e d e r a l R e s e r v e B u l l e t i n 6 6 6 (1 9 7 9 ) ;

B a s e d u p o n th e fo r e g o in g a n d o th e r c o n s id e r a tio n s

65

F ederal

R eserv e

B u lle tin

937

(1 9 7 9 );

R e p u b lic o f T e x a s C o r p o r a tio n 62 F e d e r a l R e s e r v e

r e f l e c t e d in t h e r e c o r d , it h a s b e e n d e t e r m i n e d t h a t t h e

B u lle tin

b a l a n c e o f t h e p u b l i c i n t e r e s t f a c t o r s t h a t a r e r e q u ir e d

F ederal

6 3 0 (1 9 7 6 ); B a n k A m e r ic a C o r p o r a tio n , 5 9

t o b e c o n s i d e r e d u n d e r s e c t i o n 4 ( c ) ( 8 ) o f t h e A c t is

e a r l ie r d e c i s i o n s , t h e B o a r d n o t e d t h a t b a n k s h a v e , in

f a v o r a b l e . A c c o r d i n g l y , t h e a p p l i c a t i o n is h e r e b y a p ­

f a c t , e n g a g e d in t h e i s s u a n c e o f t r a v e l e r s c h e c k s a n d

R eserv e

B u lle tin

544

(1 9 7 3 ).

In th e s e

p r o v e d . T h i s d e t e r m i n a t i o n is s u b j e c t t o t h e c o n d i t i o n s

h a v e e n g a g e d in a c t i v i t i e s t h a t a r e o p e r a t i o n a l l y a n d

s e t f o r t h in s e c t i o n 2 2 5 . 4 ( c ) o f R e g u l a t i o n Y , a n d t o t h e

f u n c t i o n a l l y s im ila r t o t h e p r o p o s e d a c t i v i t y . A c c o r d ­

or

in g l y , t h e B o a r d h a s d e t e r m i n e d t h a t t h e i s s u i n g o f

t e r m in a t io n o f t h e a c t i v i t i e s o f a h o l d i n g c o m p a n y o r

B o a r d ’s

a u th o r ity

to

r e q u ir e

su ch

m o d ific a tio n

t r a v e le r s c h e c k s in t h e m a n n e r p r o p o s e d b y A p p l i c a n t

a n y o f it s s u b s i d i a r i e s a s t h e B o a r d f in d s n e c e s s a r y t o

is c l o s e l y r e l a t e d t o b a n k i n g . 1

a s s u r e c o m p lia n c e w ith th e p r o v is io n s a n d p u r p o s e s o f

N o t i c e o f t h e a p p l i c a t i o n , a f f o r d in g i n t e r e s t e d p e r ­

th e A c t a n d th e B o a r d ’s r e g u la tio n s a n d o r d e r s is s u e d

s o n s a n o p p o r t u n i t y t o s u b m i t c o m m e n t s o n t h e p u b lic

th er e u n d er , o r to p r e v e n t e v a s io n th e r e o f.

i n t e r e s t f a c t o r s , h a s b e e n d u ly p u b l i s h e d . 4 6 F e d e r a l

T h e tr a n s a c tio n s h a ll b e m a d e n o la te r th a n th r e e

R e g i s t e r 1 7 8 8 3 ( 1 9 8 1 ) . T h e t i m e f o r filin g c o m m e n t s

m o n t h s a f t e r t h e e f f e c t i v e d a t e o f t h is O r d e r , u n l e s s

h a s e x p ir e d , a n d th e B o a r d h a s c o n s id e r e d th e a p p lic a ­

s u c h p e r i o d is e x t e n d e d f o r g o o d c a u s e b y t h e B o a r d ,

t io n a n d a ll c o m m e n t s r e c e i v e d in lig h t o f t h e p u b lic

o r b y th e S e c r e ta r y o f th e B o a r d , p u r s u a n t to d e le g a t­

i n t e r e s t f a c t o r s s e t f o r t h in s e c t i o n 4 ( c ) ( 8 ) o f t h e A c t .

e d a u t h o r it y . I n a n y e v e n t , t h e t r a n s a c t io n s h a ll b e c o n ­
s u m m a t e d w it h in o n e y e a r o f t h e d a t e o f th is O r d e r .
By

o r d e r o f th e




A c tin g

S e c re ta r y

o f th e

B oard ,

1.
See N ational Courier A ssociation v. B oard o f Governors o f the
Federal R eserve System , 516 F2d 1229 (D.C. Cir. 1975).

518

Federal R eserve Bulletin □ June 1981

A p p l i c a n t is a o n e - b a n k h o l d i n g c o m p a n y b y v ir t u e
o f it s c o n t r o l o f S e a t t l e F i r s t N a t i o n a l B a n k , S e a t t l e ,

By

order

of

th e

B oard

of

G o v ern o rs,

e ffe c tiv e

M ay 27, 1981.

W a s h i n g t o n ( d e p o s i t s o f $ 6 . 4 b il lio n ) ( “ B a n k ” ) , t h e
l a r g e s t b a n k in t h e s t a t e , c o n t r o l l i n g 3 6 . 9 p e r c e n t o f t h e

V o t in g f o r t h is a c t io n : V i c e C h a ir m a n S c h u l t z a n d G o v e r ­

s t a t e ’ s d e p o s i t s in c o m m e r c i a l b a n k s . 2 A p p l i c a n t a l s o

n o r s W a llic h , P a r te e , T e e t e r s , R ic e , a n d G r a m le y . A b s e n t

e n g a g e s in m o r t g a g e a n d in d u s t r ia l b a n k in g , c o m m e r ­

a n d n o t v o t in g : C h a ir m a n V o l c k e r .

c ia l le n d i n g a n d l e a s i n g , c o n s t r u c t i o n f in a n c e a c t i v i t i e s
(S ig n e d ) J a m e s M c A f e e ,

a n d c r e d it r e la te d in s u r a n c e a c tiv it ie s .
A p p lic a n t p r o p o s e s t o
T r a v e le r s

C heques

is s u e

th r o u g h

and

s e ll M a ste r C a r d

C o r p o r a t io n .

[s e a l]

A s s is ta n t S e c r e ta r y o f th e B o a r d .

I n itia lly ,

t h e s e c h e c k s w o u l d b e s o l d t h r o u g h B a n k , a lt h o u g h
w it h in o n e y e a r A p p l i c a n t i n t e n d s t o c o m m e n c e d is t r i­

O r d e r s I s s u e d U n d e r S e c tio n 2 o f B a n k H o ld in g

b u t i o n o f t h e s e c h e c k s t h r o u g h a g e n t s t o b e l o c a t e d in

C om pany A ct

W a s h in g to n , O r e g o n , I d a h o , M o n ta n a , A la s k a , a n d
C o lo r a d o .

The

s e llin g a g e n ts

w ill s e ll th e tr a v e le r s

c h e c k s to th e p u b lic o n b e h a lf o f A p p lic a n t.

R e p u b lic o f T e x a s C o r p o r a tio n ,
D a lla s , T e x a s

T h e t r a v e l e r s c h e c k i n d u s t r y is h ig h ly c o n c e n t r a t e d ,
w it h t h e l a r g e s t i s s u e r , A m e r i c a n E x p r e s s , a c c o u n t i n g

O r d e r G r a n tin g D e te r m in a tio n U n d e r th e B a n k

fo r 5 0 p e r c e n t o f th e m a r k e t. T h e B o a r d h a s p r e v io u s ly

H o ld in g C o m p a n y A c t

d e t e r m i n e d , in v i e w o f t h e li m i t e d n u m b e r o f c o m p e t i ­
t o r s c u r r e n t ly s e r v i c i n g t h is i n d u s t r y , t h a t it w o u l d b e

R e p u b l ic o f T e x a s C o r p o r a t i o n , D a l l a s , T e x a s ( “ R e ­

in

p u b l i c ” ) , a b a n k h o l d i n g c o m p a n y w i t h i n t h e m e a n in g

th e

p u b lic

in t e r e s t

fo r

h a v in g t h e c a p a b i l i t y , t o

bank

h o ld in g

c o m p a n ie s

e n g a g e in t h e i s s u a n c e

of

o f s e c t io n 2 (a ) o f th e B a n k H o ld in g C o m p a n y A c t o f

t r a v e l e r s c h e c k s . A p p l i c a n t ’ s e n t r y i n t o t h is in d u s t r y

1 9 5 6 , a s a m e n d e d , 12 U . S . C . § 1 8 4 1 ( a ) , h a s r e q u e s t e d

s h o u ld s e r v e t o e n h a n c e c o m p e t i t i o n b y p r o v i d i n g t h is

a d e te r m in a tio n , p u r s u a n t to th e p r o v is io n s o f s e c t io n

s e r v ic e

2 (g )(3 ) o f th e B a n k H o ld in g C o m p a n y A c t o f 1 9 5 6 ,

in t h e

m a r k e ts to

be

serv ed

by

A p p lic a n t.

A c c o r d i n g l y , it is t h e B o a r d ’s v i e w t h a t a p p r o v a l o f

12 U . S . C . § 1 8 4 1 ( g ) ( 3 ) ( t h e “ A c t ” ) , t h a t R e p u b l i c is

t h is a p p l i c a t i o n w o u l d p r o d u c e b e n e f i t s t o t h e p u b lic

n o t in f a c t c a p a b l e o f c o n t r o l l i n g H i l l c r e s t S t a t e B a n k

a n d w o u ld

o f U n iv e r s it y P a rk ( “ H illc r e s t B a n k ” ) o r M r. C a m F .

be

in

th e

t h e r e is n o e v i d e n c e

p u b lic

in te r e s t.

F u rth erm o re,

in t h e r e c o r d t o i n d i c a t e t h a t

A p p l i c a n t ’s e n g a g i n g in t h i s a c t i v i t y w o u l d l e a d t o a n y

D o w e ll,

th e

tr a n sfe r ee

o f H illc r e s t

B a n k ’s

sh ares,

n o t w i t h s t a n d i n g t h e f a c t t h a t M r . D o w e l l is i n d e b t e d t o

u n d u e c o n c e n t r a t i o n o f r e s o u r c e s , u n f a ir c o m p e t i t i o n ,

R e p u b lic N a tio n a l B a n k o f D a lla s , D a lla s , T e x a s ( “ R e ­

c o n f l i c t s o f i n t e r e s t s , u n s o u n d b a n k in g p r a c t i c e s , o r

p u b lic B a n k ” ) , a s u b s i d i a r y o f R e p u b l i c .

o th e r a d v e r se e ffe c ts .
B a s e d u p o n th e fo r e g o in g a n d o th e r c o n s id e r a tio n s

U n d e r th e p r o v is io n s o f s e c t io n 2 (g )(3 ) o f th e A c t ,
sh a r es tr a n sfe r re d a fter J a n u a ry

1, 1 9 6 6 , b y a b a n k

r e f l e c t e d in t h e r e c o r d , t h e B o a r d h a s d e t e r m i n e d t h a t

h o ld in g c o m p a n y t o a t r a n s f e r e e t h a t is i n d e b t e d t o t h e

t h e b a l a n c e o f t h e p u b l i c i n t e r e s t f a c t o r s t h e B o a r d is

tr a n sfe r o r

r e q u ir e d t o c o n s i d e r u n d e r s e c t i o n 4 ( c ) ( 8 ) is f a v o r a b l e .

t r u s t e e s , o r b e n e f i c i a r i e s in c o m m o n w i t h o r s u b j e c t t o

or

has

one

or

m ore

o ffic e r s ,

d ir e c to r s ,

A c c o r d i n g l y , t h e a p p l i c a t i o n is h e r e b y a p p r o v e d . T h is

c o n tr o l b y th e tr a n s fe r o r , a r e d e e m e d to b e in d ir e c tly

d e t e r m i n a t i o n is s u b j e c t t o t h e c o n d i t i o n s s e t f o r t h in

ow ned

s e c t i o n 2 2 5 . 4 ( c ) o f R e g u l a t i o n Y a n d t o t h e B o a r d ’s

B o a r d , a f t e r o p p o r t u n i t y f o r h e a r in g , d e t e r m i n e s t h a t

a u t h o r it y t o r e q u ir e s u c h m o d i f i c a t i o n o r t e r m in a t io n

t h e t r a n s f e r o r is n o t in f a c t c a p a b l e o f c o n t r o l l i n g t h e

o f t h e a c t i v i t i e s o f a h o l d i n g c o m p a n y o r a n y o f its

tr a n sfe r e e .

or

c o n tr o lle d

by

th e

tr a n sfe r o r

u n le s s

th e

s u b s i d i a r i e s a s t h e B o a r d f in d s n e c e s s a r y t o a s s u r e

R e p u b lic h a s s u b m itte d to th e B o a r d e v id e n c e to

c o m p lia n c e w ith th e p r o v is io n s a n d p u r p o s e s o f th e

d e m o n s t r a t e it is n o t in f a c t c a p a b l e o f c o n t r o l l i n g

A c t a n d th e

M r. D o w e ll, o r H illc r e s t B a n k , a n d th e B o a r d h a s

B o a r d ’s r e g u l a t i o n s a n d o r d e r s i s s u e d

th e r e u n d e r , o r to p r e v e n t e v a s io n th e r e o f.

r e c e i v e d n o c o n t r a d i c t o r y e v i d e n c e . I t is h e r e b y d e t e r ­

T h e t r a n s a c t i o n s h a ll b e m a d e n o t la t e r t h a n t h r e e

m in e d t h a t R e p u b l i c is n o t in f a c t c a p a b l e o f c o n t r o l ­

m o n t h s a f t e r t h e e f f e c t i v e d a t e o f t h is O r d e r , u n l e s s

lin g e i t h e r M r . D o w e l l , o r H i l l c r e s t B a n k . T h is d e t e r ­

s u c h p e r i o d is e x t e n d e d f o r g o o d c a u s e b y t h e B o a r d o r

m in a t io n is b a s e d u p o n t h e e v i d e n c e o f r e c o r d in t h is

b y th e F e d e r a l R e s e r v e B a n k o f S a n F r a n c is c o .

m a tte r th a t r e f le c t s th e fo llo w in g :
I n c o n n e c t i o n w i t h h is p u r c h a s e o f H i l l c r e s t B a n k
s h a r e s , M r. D o w e ll o b t a in e d a lo a n s e c u r e d b y th e

2. All banking data are as of December 31, 1980.



sh ares

of

B ank,

N .A .

H illc r e s t

B ank,

(“ C om m erce

fr o m

T exas

B a n k ” ),

an

C om m erce
u n a f f ili a t e d

Legal D evelopm ents

b a n k in g o r g a n i z a t i o n . R e p u b l i c N a t i o n a l B a n k o f D a l ­

R e s e r v e E n te r p r is e s , I n c .,

la s

P le n ty w o o d , M o n ta n a

( “ R e p u b lic

B a n k ” ),

one

o f R e p u b l i c ’s b a n k in g

519

s u b s i d i a r i e s , p u r c h a s e d a n o n - r e c o u r s e p a r t i c i p a t i o n in
t h is lo a n f r o m C o m m e r c e B a n k . R e p u b l i c B a n k ’s r ig h t

O r d e r G r a n tin g D e te r m in a tio n U n d e r th e B a n k

u n d e r th e p a r tic ip a tio n a g r e e m e n t is lim ite d s o le l y to

H o ld in g C o m p a n y A c t

t h e r e c e i p t o f it s

pro

r a ta s h a r e

o f th e

p a y m e n ts.

C o m m e r c e B a n k h a s s o le r e s p o n s ib ility fo r th e s u p e r ­

R eserv e

v is io n

( “ R e s e r v e ” ), a r e g is te r e d b a n k h o ld in g c o m p a n y w ith ­

o f th e lo a n

a d d it io n ,

as

a

a g r e e m e n t w ith

r e s u lt

of

an

M r. D o w e l l.1 In

u n r e la te d

tr a n s a c tio n ,

M r . D o w e l l is d i r e c t l y o b l i g a t e d t o R e p u b l i c B a n k .
It a p p e a r s th a t th e s a le o f H illc r e s t B a n k s h a r e s b y

E n te r p r is e s ,

I n c .,

P le n ty w o o d ,

M o n ta n a

in t h e m e a n i n g o f s e c t i o n 2 ( a ) o f t h e B a n k H o l d i n g
C om pany

A ct o f

1956,

as

am end ed

(“ B H C

A c t” )

(1 2 U . S . C . § 1 8 4 1 ( a ) ) , b y v ir t u e o f it s o w n e r s h i p o f

R e p u b l i c t o M r . D o w e l l w a s t h e r e s u l t o f a r m ’s l e n g t h

m o r e th a n 2 5 p e r c e n t o f th e o u t s ta n d in g v o tin g s h a r e s

n e g o tia tio n s , a n d th a t th e te r m s g o v e r n in g th e d e b t

o f M o n ta n a N a tio n a l B a n k

r e la tio n s h ip

are

w o o d , M o n ta n a ( “ B a n k ” ), h a s r e q u e s t e d a d e te r m in a ­

u s u a l o n e s lim ite d to t h o s e r e a s o n a b ly n e c e s s a r y to

tio n , p u r s u a n t t o th e p r o v is io n s o f s e c t io n 2 (g )(3 ) o f th e

b e tw e e n

M r.

D o w e ll a n d R e p u b lic

o f P le n ty w o o d ,

P le n ty -

o f th ese

B H C A c t (1 2 U . S . C . § 1 8 4 1 ( g ) ( 3 ) ) , t h a t R e s e r v e is n o t

s h a r e s a p p e a r s t o h a v e b e e n a n i n v e s t m e n t f o r h is o w n

in f a c t c a p a b l e o f c o n t r o l l i n g A - A T r a v e l A g e n c y , I n c . ,

a c c o u n t a n d n o t a s a r e p r e s e n ta tiv e o r n o m in e e o f a n y

P le n t y w o o d , M o n ta n a ( “ A g e n c y ” ), a c o r p o r a tio n to

o th e r p a r ty .2 M r. D o w e ll is n o t a n o ffic e r , d ir e c to r , o r

w h o m it t r a n s f e r r e d it s t r a v e l a g e n c y a s s e t s , n o t w i t h ­

p r o te c t R e p u b lic .

M r.

D o w e l l ’s

p u rch ase

s h a r e h o l d e r o f R e p u b l i c , o r a n y o f it s s u b s i d i a r i e s .

sta n d in g th e f a c ts th a t M r. D . S . A m u n d s o n c o n tin u e s

R e p u b l i c ’s B o a r d o f D i r e c t o r s h a s a d o p t e d a r e s o l u ­

to s e r v e a s a n o ffic e r a n d d ir e c to r o f b o th R e s e r v e a n d

t i o n t h a t it d o e s n o t , a n d w i l l n o t a t t e m p t t o e x e r t

A g e n c y , a n d A g e n c y is in d e b te d to R e s e r v e .

c o n t r o l o v e r H i l l c r e s t B a n k , o r M r . D o w e l l . I n a d d i­

U n d e r th e p r o v is io n s o f s e c t io n 2 (g )(3 ) o f th e B H C

t i o n , M r . D o w e l l h a s f il e d a n a f f id a v it t o t h e e f f e c t t h a t

A c t , s h a r e s t r a n s f e r r e d a f t e r J a n u a r y 1, 1 9 6 6 , b y a n y

h e is n o t a n d w i l l n o t b e c o n t r o l l e d b y R e p u b l i c , a n d

b a n k h o ld in g c o m p a n y t o a t r a n s f e r e e t h a t i s i n d e b t e d

t h a t h e w i l l n o t r e p r e s e n t t h e ir i n t e r e s t s in h is m a n a g e ­

to th e tr a n s fe r o r o r h a s o n e o r m o r e o ff ic e r s , d ir e c to r s ,

m ent

t r u s t e e s , o r b e n e f i c i a r i e s in c o m m o n w i t h o r s u b j e c t t o

of

H illc r e s t

B ank.

F u rth e rm o re ,

a lt h o u g h

M r . D o w e l l ’s i n d e b t e d n e s s t o R e p u b l i c is s u b s t a n t i a l ,

c o n tr o l b y th e tr a n s fe r o r a r e d e e m e d to b e in d ir e c tly

fr o m

ow ned

th e

record

it

app ears

th a t

he

has

s u f f i c ie n t

p e r s o n a l r e s o u r c e s to r e p a y th e in d e b t e d n e s s w ith o u t

or

c o n tr o lle d

by

th e

tr a n sfe r o r

u n le s s

th e

B o a r d , a fte r o p p o r tu n ity fo r a h e a r in g , d e te r m in e s th a t

b e i n g u n d u l y i n f l u e n c e d b y R e p u b l i c in h is m a n a g e ­

t h e t r a n s f e r o r i s n o t in f a c t c a p a b l e o f c o n t r o l l i n g t h e

m e n t o f H illc r e s t B a n k .

tr a n sfe r e e .

A c c o r d i n g l y , it i s o r d e r e d t h a t t h e r e q u e s t o f R e p u b ­

I t i s h e r e b y d e t e r m i n e d t h a t R e s e r v e is n o t in f a c t

l i c f o r a d e t e r m i n a t i o n p u r s u a n t t o s e c t i o n 2 ( g ) ( 3 ) is

c a p a b l e o f c o n t r o l l i n g A g e n c y . T h i s d e t e r m i n a t i o n is

g r a n te d . T h is d e te r m in a tio n is b a s e d u p o n r e p r e s e n ta ­

b ased

tio n s m a d e to th e B o a r d b y R e p u b lic a n d M r. D o w e ll.

in c l u d i n g t h e f o l l o w i n g f a c t s . U n d e r s e c t i o n 4 ( a ) ( 2 ) o f

In th e e v e n t th a t th e B o a r d s h o u ld h e r e a fte r d e te r m in e

t h e B H C A c t , R e s e r v e h a d u n t il D e c e m b e r 3 1 , 1 9 8 0 , t o

upon

th e

e v id e n c e

o f record

in t h is

m a tte r ,

t h a t f a c t s m a t e r ia l t o it s d e t e r m i n a t i o n a r e o t h e r w i s e

a p p ly t o r e t a in it s n o n b a n k i n g i n t e r e s t s o r , a l t e r n a t i v e ­

th a n a s r e p r e s e n te d o r th a t R e p u b lic o r M r. D o w e l l h a s

ly , to d iv e s t o f s u c h in t e r e s t s . A c c o r d in g ly , p u r s u a n t

f a i l e d t o d i s c l o s e t o t h e B o a r d o t h e r m a t e r ia l f a c t s , t h is

t o a p la n t o d i v e s t it s n o n b a n k i n g i n t e r e s t , R e s e r v e

d e te r m in a tio n m a y b e r e v o k e d , a n d a n y o th e r c h a n g e

s o l d it s t r a v e l s e r v i c e a s s e t s t o A g e n c y a n d p r e s e n t l y

in t h e f a c t s a n d c i r c u m s t a n c e s r e l i e d u p o n in m a k in g

h a s n o m a n a g in g o r v o t i n g i n t e r e s t w i t h r e s p e c t t o s u c h

t h is d e t e r m i n a t i o n c o u l d r e s u l t in t h e B o a r d ’s r e c o n ­

a s s e t s . A m a j o r it y o f R e s e r v e ’s s h a r e s a r e o w n e d b y

s id e r a t i o n o f t h i s d e t e r m i n a t i o n .

M r. A m u n d s o n , w h o e x e r t s a d o m in a n t in f lu e n c e o v e r

B y o r d e r o f th e B o a r d o f G o v e r n o r s , a c tin g th r o u g h

th e m a n a g e m e n t o f R e s e r v e th r o u g h h is p o s it io n s a s

it s G e n e r a l C o u n s e l , p u r s u a n t t o d e l e g a t e d a u t h o r it y

p r e s id e n t a n d d ir e c to r o f R e s e r v e , a s w e ll a s p r e s id e n t

(1 2 C . F . R . § 2 6 5 . 2 ( b ) ( 1 ) ) , e f f e c t i v e M a y 2 6 , 1 9 8 1 .

a n d c h a ir m a n o f B a n k . A l s o , a s t h e r e a r e n o c u m u l a ­
t i v e v o t i n g r ig h t s a t t a c h e d t o t h e s h a r e s o f R e s e r v e , it

[s e a l]

(S ig n e d ) J a m e s M c A f e e ,

a p p e a r s th a t M r. A m u n d s o n m a y c o n tr o l th e e le c t io n

A s s is ta n t S e c r e ta r y o f th e B o a r d .

o f a ll t h e d i r e c t o r s o f R e s e r v e ’s b o a r d o f d i r e c t o r s . I n
a d d i t i o n , M r . A m u n d s o n h a s t h e r ig h t o f fir s t r e f u s a l t o

1. In the unlikely event o f default by Mr. D ow ell, the shares of
Hillcrest Bank would revert to Commerce Bank, not Republic Bank.
2. In addition to the shares o f Hillcrest Bank purchased from




Republic, Mr. Dow ell also purchased Hillcrest Bank shares from the
Hoblitzelle Foundation, and from Southland Life Insurance Company.

520

Federal R eserve Bulletin □ June 1981

p u r c h a s e h is p r o r a t a s h a r e o f t h e r e m a in in g o u t s t a n d ­

I n c o n n e c t i o n w i t h t h is r e q u e s t , t h e f o l l o w i n g i n f o r ­

in g s h a r e s . N o o t h e r s h a r e h o l d e r o w n s m o r e t h a n f iv e

m a t io n is d e e m e d r e l e v a n t f o r p u r p o s e s o f i s s u i n g t h e

p e r c e n t o f R e s e r v e ’s v o t i n g s h a r e s . W h i l e A g e n c y is

r e q u e s te d c e r tific a tio n .1

w h o l l y - o w n e d a n d o p e r a t e d b y M r . A m u n d s o n a n d h is

1. E f f e c t i v e N o v e m b e r 2 5 , 1 9 8 0 , t h e B o a r d i s s u e d a

w ife a n d d a u g h te r , th e tr a n s fe r o f th e tr a v e l a s s e t s to

p r io r c e r t i f i c a t i o n p u r s u a n t t o s e c t i o n 6 1 5 8 ( a ) o f t h e

a g e n c y d o e s n o t a p p e a r to h a v e b e e n in te n d e d a s a

C o d e w ith r e s p e c t to th e p r o p o s e d s a le b y S o u t h ­

m e a n s fo r p e r p e tu a tin g

th e

e a s t e r n o f 1 9 , 3 4 4 .5 s h a r e s o f F i r s t N a t i o n a l B a n k o f

tr a v e l a s s e ts . I n d e e d , R e s e r v e h a s r e p r e s e n te d th a t

M c D o n o u g h ( “ B a n k ” ), M c D o n o u g h , G e o r g ia , th e n

A g e n c y w a s o p e r a te d a s a s e r v ic e to th e c o m m u n ity

h e ld b y S o u t h e a s t e r n t o T r u s t C o m p a n y o f G e o r g i a ,

a n d , th e r e fo r e , w a s n o t e a s ily m a r k e ta b le . F r o m th e

A tla n ta , G e o r g ia ( “ B u y e r ” ), a r e g is te r e d b a n k h o ld ­

record

in g c o m p a n y .

in t h is

m a tte r,

R e s e r v e ’s c o n t r o l o v e r

it a p p e a r s

th a t c o n tr o l o v e r

R e s e r v e a n d th e tr a n sfe r r e d tr a v e l s e r v ic e a s s e ts r e s ts
w it h

M r. A m u n d s o n

and

h is f a m i l y

2 . T h e B o a r d ’s O r d e r c e r t i f i e d th a t:

a s in d iv id u a ls .

A . S o u t h e a s t e r n is a q u a lif ie d b a n k h o l d i n g c o r ­

F u r t h e r , t h e r e is n o e v i d e n c e t h a t R e s e r v e c o n t r o l s o r

p o r a t i o n w i t h i n t h e m e a n i n g o f s e c t i o n 1 1 0 3 (b ) o f

in f a c t is c a p a b l e o f c o n t r o l l i n g A g e n c y in it s c a p a c i t y

th e C o d e , a n d s a tis fie s th e r e q u ir e m e n ts o f th a t

a s tr a n s fe r e e o f th e tr a v e l s e r v ic e a s s e t s , o r o t h e r w is e .

s u b s e c tio n ;

A c c o r d i n g l y , it i s o r d e r e d t h a t t h e r e q u e s t o f R e ­

B . t h e 1 9 ,3 4 4 .5 s h a r e s o f B a n k t h a t S o u t h e a s t e r n

s e r v e fo r a d e te r m in a t io n p u r s u a n t to s e c t io n 2 (g )(3 ) b e

p r o p o s e s t o s e l l t o B u y e r a r e a ll o r p a r t o f t h e

a n d h e r e b y is g r a n t e d . T h is d e t e r m i n a t i o n is b a s e d

p r o p e r ty b y r e a s o n o f w h ic h S o u th e a s te r n c o n ­

u p o n th e r e p r e s e n ta tio n s m a d e to th e B o a r d b y R e ­

t r o ls ( w it h in t h e m e a n i n g o f s e c t i o n 2 (a ) o f t h e

serve

a n d M r. A m u n d s o n .

In th e e v e n t th e

B oard

(B a n k H o ld in g C o m p a n y A c t) a b a n k o r a b a n k

s h o u l d h e r e a f t e r d e t e r m i n e t h a t f a c t s m a t e r ia l t o t h is

h o ld in g c o m p a n y ; a n d

d e te r m in a tio n a re o th e r w is e th a n a s r e p r e s e n te d , o r

C . t h e s a l e o f t h e s h a r e s o f B a n k is n e c e s s a r y o r

th a t R e s e r v e o r M r . A m u n d s o n h a s f a i l e d t o d i s c l o s e

a p p r o p r ia t e t o e f f e c t u a t e t h e p o l i c i e s o f t h e B a n k

t o t h e B o a r d o t h e r m a t e r ia l f a c t s , t h is d e t e r m i n a t i o n
m ay

be

revok ed ,

and

any

change

in

th e

fa c ts

or

H o ld in g C o m p a n y A c t .
3. O n

D ecem b er

30,

1980,

S o u th e a ste r n

s o ld

to

c i r c u m s t a n c e s r e l i e d u p o n in m a k in g t h is d e t e r m i n a ­

B u y e r it s 1 9 ,3 4 4 .5 s h a r e s o f B a n k .

t io n c o u l d r e s u l t in a r e c o n s i d e r a t i o n o f t h e d e t e r m i n a ­

4 . T h e p r io r c e r t i f i c a t i o n i s s u e d o n N o v e m b e r 2 5 ,

t io n m a d e h e r e i n .

1 9 8 0 , w a s g r a n te d o n th e c o n d it io n th a t n o p e r s o n

B y o r d e r o f th e B o a r d o f G o v e r n o r s , a c tin g th r o u g h

h o ld in g a n o f f ic e o r p o s i t i o n a s a d i r e c t o r o r o f f ic e r

it s G e n e r a l C o u n s e l p u r s u a n t t o d e l e g a t e d a u t h o r it y

o f S o u t h e a s t e r n w i l l h o l d a n y s u c h o f f ic e o r p o s i t i o n

(1 2 C . F . R . § 2 6 5 . 2 ( b ) ( 1 ) ) , e f f e c t i v e M a y 1, 1 9 8 1 .

w it h B a n k o r B u y e r s , a n d t h a t B u y e r w o u l d n o t b e
in d e b te d to S o u th e a s te r n . S o u th e a s te r n h a s r e p r e ­

(S ig n e d ) J a m e s M c A f e e ,
[s e a l]

A s s is ta n t S e c r e ta r y o f th e B o a r d .

s e n t e d t h a t a ll s u c h i n t e r l o c k i n g r e l a t i o n s h i p s b e ­
tw een

it

and

B ank

w ere

te r m in a te d ,

e ffe c tiv e

D e c e m b e r 3 0 , 1 9 8 0 , a n d t h a t B u y e r is n o t i n d e b t e d
to S o u th e a ste r n .
C e r tif ic a tio n s P u r s u a n t to th e B a n k H o ld in g

5 . S o u th e a s t e r n d o e s n o t d ir e c tly o r in d ir e c tly o w n ,

C om pan y Tax A c t o f 1976

c o n tr o l or h a v e p o w e r to v o te 5 p e r c e n t o r m o re o f
a n y c la s s o f v o tin g s e c u r itie s o f a n y b a n k o r a n y

S o u t h e a s t e r n C a p ita l C o r p o r a tio n ,

c o m p a n y th a t c o n tr o ls a b a n k .

A tla n ta , G e o r g ia

6. S o u th e a ste r n

has

r e p r e se n te d

t h a t it d o e s

not

c o n t r o l in a n y m a n n e r t h e e l e c t i o n o f m a j o r it y o f
F in a l C e r tif ic a tio n P u r s u a n t to th e B a n k H o ld in g

d i r e c t o r s , o r e x e r c i s e a c o n t r o l l i n g in f l u e n c e o v e r

C o m p a n y T ax A c t o f 1976

th e m a n a g e m e n t o r p o lic ie s o f B a n k o r a n y o th e r
b a n k o r a n y c o m p a n y th a t c o n tr o ls a b a n k .

S o u t h e a s t e r n C a p it a l C o r p o r a t i o n ( “ S o u t h e a s t e r n ” ) ,
a f in a l c e r t i f i c a t i o n

O n t h e b a s i s o f t h e f o r e g o i n g in f o r m a t i o n it is h e r e b y

p u r su a n t to s e c tio n 6 1 5 8 (c )(2 ) o f th e I n te r n a l R e v e n u e

c e r t i f ie d t h a t S o u t h e a s t e r n h a s ( b e f o r e t h e e x p i r a t i o n

A tla n ta , G e o r g ia , h a s r e q u e s t e d

C o d e ( “ C o d e ” ), a s a m e n d e d b y

s e c t i o n 3 (a ) o f t h e

B a n k H o l d i n g C o m p a n y T a x A c t o f 1 9 7 6 , t h a t it h a s
(b e f o r e th e e x p ir a tio n o f th e p e r io d p r o h ib ite d p r o p e r ­
t y is p e r m i t t e d u n d e r t h e B a n k H o l d i n g C o m p a n y A c t
(1 2 U . S . C . § 1 8 4 2 e t s e q . ) t o b e h e l d b y a b a n k h o ld in g
c o m p a n y ) c e a s e d to b e a b a n k h o ld in g c o m p a n y .




1. This information derives from Southeastern’s correspondence
with the Board concerning its request for this certification, Southeast­
ern’s Registration Statement filed with the Board pursuant to the Bank
Holding Company A ct, and other records o f the Board.

Legal D evelopm ents

521

o f t h e p e r i o d p r o h i b i t e d p r o p e r t y is p e r m i t t e d u n d e r

w i t h i n t h e m e a n i n g o f s e c t i o n 1 1 0 3 (b ) o f t h e C o d e ,

th e B a n k H o ld in g C o m p a n y A c t to b e h e ld b y a b a n k

a n d s a tis fie s th e r e q u ir e m e n ts o f th a t s u b s e c tio n ;

h o ld in g c o m p a n y ) c e a s e d t o b e a b a n k h o l d i n g c o m p a ­

B . T h e 4 0 0 s h a r e s o f B a n k th a t N I A p r o p o s e s to

n y , a n d h a s d i s p o s e d o f a ll it s b a n k in g p r o p e r t y .

d is t r ib u t e t o it s s h a r e h o l d e r s a r e a ll o r p a r t o f t h e

T h is c e r t i f i c a t i o n i s b a s e d u p o n t h e r e p r e s e n t a t i o n s

p r o p e r t y b y r e a s o n o f w h i c h N I A c o n t r o l s ( w it h in

m a d e to th e B o a r d b y S o u th e a ste r n a n d u p o n th e fa c ts

th e m e a n in g o f s e c t io n 2 (a ) o f th e B a n k H o ld in g

s e t fo r th a b o v e . In th e e v e n t th e B o a r d s h o u ld d e te r ­

C o m p a n y A c t) a b a n k o r a b a n k h o ld in g c o m p a n y ;

m in e t h a t f a c t s m a t e r ia l t o t h i s c e r t i f i c a t i o n a r e o t h e r ­

and

w is e

th a n

as r e p r e se n te d

by

S o u th e a ste r n ,

o r th a t

S o u th e a s te r n h a s fa ile d to d is c lo s e to th e B o a r d o th e r

C. The

of

th e

sh ares

of

B ank

is

o f th e B a n k H o ld in g C o m p a n y A c t.

m a t e r ia l f a c t s , it m a y r e v o k e t h is c e r t i f i c a t i o n .
B y o r d e r o f th e B o a r d o f G o v e r n o r s , a c tin g th r o u g h
it s G e n e r a l C o u n s e l , p u r s u a n t t o d e l e g a t e d a u t h o r it y

3. O n D e c e m b e r

17, 1980, N I A

d i s t r i b u t e d t o it s

s h a r e h o ld e r s o n a p r o r a ta b a s is th e 4 0 0 s h a r e s o f
B ank.

(1 2 C . F . R . § 2 6 5 . 2 ( b ) ( 3 ) ) , e f f e c t i v e M a y 1 3 , 1 9 8 1 .

4. T h e

[s e a l]

d is t r i b u t i o n

n e c e s s a r y o r a p p r o p r ia t e t o e f f e c t u a t e t h e p o l i c i e s

p r io r

c e r tific a tio n

is s u e d

on

O c to b e r

29,

(S ig n e d ) J a m e s M c A f e e ,

19 80, w a s g r a n te d o n th e c o n d it io n th a t n o p e r s o n

A s s is ta n t S e c r e ta r y o f th e B o a r d .

h o ld in g a n o f f i c e o r p o s i t i o n a s a d i r e c t o r o r o f f ic e r
o f N I A a s a d ir e c to r , o ffic e r , p o lic y - m a k in g e m p lo y ­
ee,

o r m a n a g e m e n t c o n s u lta n t,

or w h o

p e r fo r m s

N a tio n a l I n s u r a n c e A g e n c y , I n c .,

(d ir e c tly o r th r o u g h a n a g e n t, r e p r e s e n t a t iv e , o r a

P r a tt, K a n s a s

n o m i n e e ) f u n c t i o n s c o m p a r a b l e t o t h o s e n o r m a ll y
a s s o c ia t e d w ith s u c h o ffic e o r p o s it io n , w ill h o ld a n y

F in a l C e r tif ic a tio n P u r s u a n t to th e B a n k H o ld in g

s u c h o ffic e o r p o s it io n o r p e r fo r m a n y s u c h fu n c tio n

C o m p a n y T ax A c t o f 1976

w it h B a n k . N I A h a s r e p r e s e n t e d t h a t a ll s u c h i n t e r ­
lo c k in g

N a tio n a l

In su ra n ce

A gency,

In c.

( “ N I A ” ),

P r a tt,

r e la tio n s h ip s

b e tw e e n

it

and

B ank

w ere

te r m in a te d , e f f e c t iv e D e c e m b e r 10 , 1 9 8 0 .

K a n s a s , h a s r e q u e s t e d a fin a l c e r t i f i c a t i o n p u r s u a n t t o

5 . P r in c ip a ls

s e c tio n

a f f id a v it s s t a t i n g t h a t t h e y w i l l v o t e t h e s h a r e s o f

1 1 0 1 (e )

of

th e

In te r n a l

R even u e

C ode

of

N IA

and

B ank

have

( “ C o d e ” ), a s a m e n d e d b y s e c t io n 2 (a ) o f th e B a n k

B a n k d is tr ib u te d to th e m

H o l d i n g C o m p a n y T a x A c t o f 1 9 7 6 , t h a t it h a s ( b e f o r e

c a p a c itie s a n d n o t o n b e h a lf o f N I A .

th e e x p ir a tio n
p e r m itte d

o f th e

un der

p e r io d

th e

B ank

p r o h ib ite d
H o ld in g

p r o p e r ty

C om pany

s u b m itte d

o n l y in t h e ir i n d iv id u a l

is

A ct

On

th e

b a s is

o f th e

fo r e g o in g

in fo r m a tio n ,

it is

(1 2 U . S . C . § 1 8 4 2 e t s e q . ) t o b e h e l d b y a b a n k h o ld in g

h e r e b y c e r t i f ie d t h a t N I A h a s ( b e f o r e t h e e x p i r a t i o n o f

c o m p a n y ) c e a s e d to b e a b a n k h o ld in g c o m p a n y .

th e p e r io d p r o h ib ite d p r o p e r ty is p e r m itte d u n d e r th e

I n c o n n e c t i o n w i t h t h is r e q u e s t , t h e f o l l o w i n g in f o r ­

B a n k H o ld in g C o m p a n y A c t to b e h e ld b y a b a n k

m a t io n is d e e m e d r e l e v a n t f o r p u r p o s e s o f i s s u i n g t h e

h o ld in g c o m p a n y ) c e a s e d t o b e a b a n k h o l d i n g c o m ­

r e q u e s te d c e r tific a tio n .1

pany.

1. E f f e c t i v e O c t o b e r 2 9 , 1 9 8 0 , t h e B o a r d i s s u e d a

T h is c e r t i f i c a t i o n i s b a s e d u p o n t h e r e p r e s e n t a t i o n s

p r io r c e r t i f i c a t i o n p u r s u a n t t o s e c t i o n 1 1 0 1 (b ) o f t h e

a n d c o m m itm e n ts m a d e to th e B o a r d b y N I A a n d u p o n

C o d e w ith r e s p e c t to th e p r o p o s e d d iv e s titu r e b y

th e fa c ts s e t fo r th a b o v e . In th e e v e n t th e B o a r d s h o u ld

N IA

of

400

( “ B a n k ” ),

sh ares

P r a tt,

of

The

K an sas,

C o a ts

th e n

S ta te

h e ld

by

B ank

d e t e r m i n e t h a t f a c t s m a t e r ia l t o t h i s c e r t i f i c a t i o n a r e

N IA ,

o th e r w is e th a n a s r e p r e s e n te d b y N I A , o r th a t N I A

th r o u g h t h e p r o r a t a d i s t r i b u t i o n o f s u c h s h a r e s t o

h a s f a i l e d t o d i s c l o s e t o t h e B o a r d o t h e r m a t e r ia l f a c t s

N I A ’s s h a r e h o l d e r s .

o r f a i l e d t o f u lf ill a n y c o m m i t m e n t , it m a y r e v o k e t h is

2 . T h e B o a r d ’s O r d e r c e r t i f i e d th a t:

c e r tific a tio n .

A . N IA

i s a q u a lif ie d b a n k h o l d i n g c o r p o r a t i o n

B y o r d e r o f th e B o a r d o f G o v e r n o r s , a c tin g th r o u g h
it s G e n e r a l C o u n s e l , p u r s u a n t t o d e l e g a t e d a u t h o r it y
(1 2 C . F . R . § 2 6 5 . 2 ( b ) ( 3 ) ) , e f f e c t i v e M a y 1 3 , 1 9 8 1 .

1. This information derives from N IA ’s correspondence with the
Board concerning its request for this certification, N IA ’s Registration
Statement filed with the Board pursuant to the Bank Holding Compa­
ny Act, and other records o f the Board.




(Signed) James McA fee ,
[seal]

Assistant Secretary of the Board.

522

Federal R eserve Bulletin □ June 1981

O r d e r s A p p r o v in g A p p l ic a t io n s U n d e r t h e B a n k H o l d in g C o m p a n y A c t
a n d

Ba n k M erger A ct

By the Board o f Governors
D u r in g M a y 1 9 8 1 , t h e B o a r d o f G o v e r n o r s a p p r o v e d t h e a p p l i c a t i o n s l i s t e d b e l o w . C o p i e s a r e a v a i l a b l e u p o n
r e q u e s t to P u b lic a tio n s S e r v ic e s , D iv is io n o f S u p p o r t S e r v ic e s , B o a r d o f G o v e r n o r s o f th e F e d e r a l R e s e r v e
S y s t e m , W a s h in g t o n , D .C . 2 0 5 5 1 .

S e c tio n 3

B o a r d a c tio n
A p p lic a n t

B a n k (s)

(e ffe c tiv e
d a te)

F i r s t C la r io n B a n c o r p o r a t i o n ,
C la r io n , I o w a

T h e F ir s t N a tio n a l B a n k o f

M a y 1 2 , 198 1

C la r io n ,
C la r io n , I o w a

M e r c h a n tile B a n k s h a r e s C o r p o r a tio n ,
B a ltim o r e , M a r y la n d
M e r c h a n tile B a n k s h a r e s C o r p o r a tio n ,
B a ltim o r e , M a r y la n d
R ic e L a k e B a n c o r p , I n c .,
R ic e L a k e , W is c o n s in

S t. M ic h a e ls B a n k ,

M a y 2 8 , 1981

S t. M ic h a e ls , M a r y la n d
T h e F o r e s t H ill S ta te B a n k ,

M a y 2 8 , 19 8 1

F o r e s t H ill, M a r y la n d
D a ir y S t a t e B a n k ,

M a y 4 , 1981

R ic e L a k e , W is c o n s in

S e c tio n 4

N o n b a n k in g
A p p lic a n t

com pany
(o r a c tiv ity )

N a tio n a l B a n k o f C a n a d a ,
M o n tr e a l, Q u e b e c , C a n a d a

t o e n g a g e in m o r t g a g e b a n k in g a c ­

E ffe c tiv e
d a te

M a y 2 7 , 198 1

tiv itie s th r o u g h a S e a tt le , W a s h ­
i n g t o n o f f ic e o f L a u r e n t i d e F i ­
n a n c i a l R e a l t y C o r p o r a t io n

O tto B r e m e r F o u n d a tio n ,
S t . P a u l, M i n n e s o t a
O tto B re m e r C o m p a n y ,

t o r e t a in t h e a s s e t s a n d o f f i c e s o f

M a y 2 8 , 1981

M c C a r ty In su r a n c e A g e n c y , a n d
W ash b u rn A g e n c y

S t . P a u l, M i n n e s o t a
U ta h B a n c o r p o r a tio n ,
S a lt L a k e C i t y , U t a h




H o l l a d a y T h r if t a n d L o a n ,
S a lt L a k e C i t y , U t a h

M a y 4 , 1981

Legal D evelopm ents

523

B y F ederal R eserve B anks

R e c e n t a p p lic a tio n s h a v e b e e n a p p r o v e d b y th e F e d e r a l R e s e r v e B a n k s a s lis te d b e lo w . C o p ie s o f th e o r d e r s
a r e a v a ila b le u p o n r e q u e s t to th e R e s e r v e B a n k s .

S e c tio n 3

A p p lic a n t

A c a d ia n a B a n c s h a r e s , I n c .,
L a fa y e tte , L o u is ia n a
A r m y N a tio n a l B a n c s h a r e s , I n c .,
F ort L e a v e n w o r th , K a n sa s
A u b u r n B a n c s h a r e s , I n c .,
A ubu rn , Io w a
B o o n e B a n c o r p , I n c .,
B e lv id e r e , I llin o is
B a n k s o f I o w a , I n c .,
D e s M o in e s , I o w a
C a m d e n C o u n ty B a n c s h a r e s , I n c .,
C a m d e n to n , M is s o u r i
C a m p b e ll S ta te C o m p a n y ,
C a m p b e ll, N e b r a s k a
C itiz e n s B a n k in g C o r p o r a tio n ,
F lin t, M ic h ig a n

B a n k (s)

A m e r ic a n B a n k & T r u st C o m p a n y ,

R eserv e

E ffe c tiv e

B ank

d a te

A tla n ta

A p r il 3 0 , 1 9 8 1

K a n s a s C it y

M a y 4 , 1981

C h ic a g o

M a y 4 , 1981

C h ic a g o

M a y 5 , 198 1

C h ic a g o

M a y 1 1 , 198 1

S t. L o u is

M a y 1 5 , 198 1

K a n s a s C it y

A p r il 2 0 , 1 9 8 1

C h ic a g o

M a y 7 , 19 8 1

D a lla s

M a y 1 1 , 19 8 1

D a lla s

M a y 5 , 19 8 1

C le v e la n d

M a y 1 9 , 198 1

K a n s a s C it y

M a y 8 , 1981

S t. L o u is

M a y 4 , 1981

D a lla s

M a y 2 8 , 198 1

D a lla s

M a y 8 , 1981

C h ic a g o

A p r il 2 8 , 1 9 8 1

C h ic a g o

M a y 11, 1981

L a fa y e tte , L o u is ia n a
A r m y N a tio n a l B a n k ,
F ort L ea v e n w o r th , K a n sa s
A u b u r n S a v in g s B a n k ,
A ubu rn , Io w a
B o o n e S ta te B a n k ,
B e lv id e r e , I llin o is
F o r t M a d is o n B a n k & T r u st C o .,
F o r t M a d is o n , I o w a
C a m d en C o u n ty B a n k ,
C a m d e n to n , M is s o u r i
C a m p b e ll S ta te B a n k ,
C a m p b e ll, N e b r a s k a
C itiz e n s C o m m e r c ia l & S a v in g s
B ank,
F l i n t , M ic h ig a n

C itiz e n s G r e e n v ille B a n c s h a r e s ,
I n c .,
G r e e n v ille , T e x a s
E a s t T e x a s B a n c s h a r e s , I n c .,
T y le r , T e x a s

T h e C itiz e n s N a tio n a l B a n k o f
G r e e n v ille ,
G r e e n v ille , T e x a s
P e o p l e s N a t i o n a l B a n k o f S u lp h u r
S p r in g s ,
S u lp h u r S p r i n g s , T e x a s

C o m m u n ity B a n c s h a r e s , I n c .,
M c A r th u r , O h io

T h e V in to n C o u n t y N a tio n a l B a n k
o f M cA r th u r ,
M c A r th u r , O h io

E q u a lity B a n k s h a r e s ,
C h e y e n n e , W y o m in g
F in a n c ia l B a n c s h a r e s , I n c .,
S t. L o u is , M iss o u r i

T h e E q u a lity S ta te B a n k ,
C h e y e n n e , W y o m in g
C h ip p e w a B a n k ,
S t. L o u is , M is s o u r i
C itiz e n s B a n k o f D e x te r ,
D e x t e r , M is s o u r i
S c h m id B r o th e r s I n v e s tm e n t C o m ­
p a n y , I n c .,
S t. L o u is , M is s o u r i

F i r s t B a ir d B a n c s h a r e s , I n c . ,
B a ir d , T e x a s
F ir s t C a n a d ia n B a n c o r p , I n c .,
C a n a d ia n , T e x a s

T h e F i r s t N a t i o n a l B a n k o f B a ir d ,
B a ir d , T e x a s
T h e F i r s t N a t i o n a l B a n k o f C a n a d i­
an,
C a n a d ia n , T e x a s

F i r s t C a r y - G r o v e C o r p .,
C a r y , I llin o is
F ir s t D e K a lb B a n c s h a r e s , I n c .,
D e K a lb , I llin o is




F ir s t S e c u r ity B a n k o f C a r y -G r o v e ,
C a r y , I llin o is
F i r s t N a t i o n a l B a n k in D e K a l b ,
D e K a l b , I ll i n o i s

524

Federal R eserve Bulletin □ June 1981

Section 3—Continued

A p p lic a n t

F ir s t D e lt a C o r p o r a tio n ,
H e le n a , A r k a n s a s

B a n k (s)

F i r s t N a t i o n a l B a n k o f P h illip s

R eserv e

E ffe c tiv e

B ank

d a te

S t. L o u is

M a y 2 2 , 1981

N e w Y ork

M a y 2 6 , 1981

N e w Y ork

M a y 2 9 , 198 1

K a n s a s C it y

A p r il 2 9 , 1 9 8 1

C h ic a g o

M a y 4 , 1981

K a n s a s C it y

A p r il 2 7 , 1 9 8 1

A tla n ta

M a y 7 , 1981

K a n s a s C it y

M a y 8 , 1981

C h ic a g o

M a y 4 , 1981

M in n e a p o lis

M a y 2 2 , 1981

S t. L o u is

M a y 4 , 1981

M in n e a p o lis

M a y 2 8 , 1981

K a n s a s C it y

M a y 1, 19 8 1

A tla n ta

M a y 7 , 198 1

D a lla s

M a y 2 8 , 1981

C h ic a g o

M a y 8 , 1981

K a n s a s C it y

A p r il 2 3 , 1 9 8 1

A tla n ta

M a y 4 , 1981

M in n e a p o lis

M a y 2 2 , 1981

S t. L o u is

M a y 8 , 19 8 1

D a lla s

M a y 2 0 , 1981

C o u n ty ,
H e le n a , A r k a n sa s

F i r s t G le n B a n c o r p , I n c . ,
G le n s F a lls , N e w Y o r k

T h e F ir s t N a tio n a l B a n k o f G le n s
F a lls ,
G le n s F a lls , N e w Y o r k

F ir s t J e r s e y N a tio n a l C o r p o r a tio n ,
J e r s e y C ity , N e w J e r s e y
T h e F ir s t N a tio n a l B a n c o r p o r a tio n ,
In c.

T h e B a n k o f N e w J e r se y , N .A .,
M o o re sto w n , N e w J ersey
T h e F ir s t N a tio n a l B a n k o f th e
S o u th w e st,

D e n v e r , C o lo r a d o

J e ffe r s o n C o u n t y , C o lo r a d o

F i r s t o f H u r o n C o r p .,

F ir s t N a tio n a l B a n k o f B a d A x e ,

B a d A x e , M ic h ig a n
F ir s t P ic h e r B a n c s h a r e s , I n c .,
P ic h e r , O k la h o m a
F ir s t S o u th B a n k c o r p ,
C o lu m b u s , G e o r g ia
F o r t C o b b B a n c s h a r e s , I n c .,
F o r t C o b b , O k la h o m a
F o x V a lle y B a n c o r p , I n c .,
M o n tg o m e r y , I llin o is
K e e w a tin B a n c o r p o r a tio n , I n c .,
K e e w a t in , M in n e s o ta

B a d A x e , M ic h ig a n
F ir s t S ta te B a n k ,
P ic h e r , O k la h o m a
F a rm ers an d M erch a n ts B a n k ,
P in e M o u n ta in , G e o r g ia
W a s h ita V a lle y B a n k ,
F o r t C o b b , O k la h o m a
B a n k o f M o n tg o m e r y ,
M o n t g o m e r y , I ll i n o i s
T h e F ir s t N a tio n a l B a n k o f K e e w a ­
t in ,
K e e w a t in M in e s o ta

L a k e la n d B a n c s h a r e s , I n c .,
S u n r is e B e a c h , M is s o u r i
L a k e v ille F in a n c ia l S e r v ic e s , I n c .,
L a k e v ille , M in n e s o ta
L e a v c o r p , I n c .,
L e a v e n w o r th , K a n sa s

L a k e la n d S ta te B a n k ,
S u n r is e B e a c h , M is s o u r i
F ir s t L a k e v ille S ta te B a n k ,
L a k e v ille , M in n e s o ta
T h e L e a v e n w o r th N a tio n a l B a n k
an d T ru st C o m p a n y ,
L e a v e n w o r th , K a n sa s

N ic e v ille B a n k sh a r e s,
N ic e v i lle , F lo r id a
N a tio n a l B a n c s h a r e s C o r p o r a tio n
o f T exas,

F ir s t N a tio n a l B a n k o f N ic e v ille ,
N ic e v i l le , F lo r id a
R e p u b lic N a tio n a l B a n k o f A u s tin ,
A u s tin , T e x a s

S a n A n to n io , T e x a s
N o r th C e n tr a l B a n c o r p o r a t io n ,
M a s o n C ity , I o w a
O r c h a r d V a l l e y F i n a n c i a l C o r p .,
E n g le w o o d , C o lo r a d o
P e o p le s B a n c s h a r e s , I n c .,
P e ll C ity , A la b a m a
P erh a m S ta te B a n c sh a r e s ,
P e r h a m , M in n e s o ta
P ik e B a n c o r p , I n c .,
P i t t s f i e l d , I ll i n o i s
R e d O a k B a n c s h a r e s , I n c .,
R ed O ak, T exas




N o r th I o w a S ta te B a n k ,
B e lm o n d , I o w a
T h e F ir s t S ta te B a n k o f H o tc h k is s ,
H o t c h k is s , C o lo r a d o
T h e P e o p le s B a n k ,
P e ll C ity , A la b a m a
P erh a m S ta te B a n k ,
P e r h a m , M in n e s o ta
F a rm ers S ta te B a n k ,
P itts fie ld , I llin o is
R e d O a k S ta te B a n k ,
R ed O ak, T exas

Legal D evelopm ents

525

Section 3—Continued
B a n k (s)

A p p lic a n t

F ir s t C itiz e n s B a n k o f M ile s C ity ,

S e c u r ity B a n c S h a r e s o f M o n ta n a ,

R eserv e

E f lf e c t iv e

B ank

d a te

M in n e a p o lis

M a y 2 7 , 1981

D a lla s

M a y 5 , 1981

A tla n ta

M a y 2 6 , 1981

A tla n ta

M a y 2 9 , 198 1

D a lla s

M a y 5 , 19 8 1

M in n e a p o lis

M a y 2 2 , 1981

M ile s C ity , M o n ta n a

I n c .,
B illin g s , M o n ta n a

F ir s t B a n k & T r u st,

T o m b a ll B a n c s h a r e s , I n c . ,

T o m b a ll, T e x a s

T o m b a ll, T e x a s

U n it e d B a n k o f C h a tta n o o g a ,

U n ite d B a n c s h a r e s , I n c .,

C h a tta n o o g a , T e n n e ss e e

C h a tta n o o g a , T e n n e s s e e

U n i t e d N a t i o n a l B a n k o f M ia m i,

U n ite d B a n k s h a r e s , I n c .,

M ia m i, F l o r i d a

M ia m i, F l o r i d a

F i r s t S t a t e B a n k in A r c h e r C i t y ,

U n ite d T e x a s F in a n c ia l C o r p o r a ­

A r c h e r C ity , T e x a s

tio n ,
W ic h ita F a lls , T e x a s

Z a p p N a tio n a l B a n k o f S t. C lo u d ,

Z a p p c o , I n c .,

S t. C lo u d , M in n e s o ta

S t. C lo u d , M in n e s o ta

S e c tio n s 3 a n d 4

N o n b a n k in g
B a n k (s)

A p p lic a n t

com pan y
(o r a c tiv it y )

G ib b o n E x c h a n g e

E xch ange B ank,

t o e n g a g e in t h e s a l e o f

G ib b o n , N e b r a s k a

C om pany,
G ib b o n , N e b r a s k a

G ib b o n I n s u r a n c e

R eserv e

E f lf e c t iv e

B ank

d a te

K a n s a s C ity

A p r il 2 9 , 1 9 8 1

M in n e a p o lis

M a y 2 1 , 1981

g e n e r a l in s u r a n c e in
a c o m m u n ity o f le s s

A gency,

t h a n 5 ,0 0 0 p o p u l a t i o n

G ib b o n , N e b r a s k a
V e b le n I n s u r a n c e C o m ­

T h e B a n k o f V e b le n ,

to c o n tin u e to e n g a g e

p a n y , I n c .,

V e b le n , S o u th D a ­

in g e n e r a l i n s u r a n c e

V e b le n , S o u th

k o ta

a c t i v i t i e s in a t o w n

D a k o ta

o f le s s th a n 5 ,0 0 0
p o p u la tio n

S e c tio n 4

N o n b a n k in g
com pany

A p p lic a n t

(o r a c tiv it y )
E u r o p e a n A m e r ic a n B a n c o r p ,
N ew Y ork, N e w Y ork
P h ila d e lp h ia N a tio n a l C o r p o r a tio n ,
P h ila d e lp h ia , P e n n s y lv a n ia
C o n tin e n ta l I llin o is C o r p o r a tio n ,
C h ic a g o , I llin o is




D o r m a n & W ils o n , I n c .,

E f lf e c t iv e
d a te

M a y 14, 1981

W h it e P l a i n s , N e w Y o r k
M o r tg a g e B a n k e r s S e r v ic e C o r p o r a tio n ,

M a y 2 0 , 198 1

M o n t e r e y , C a lif o r n i a
D r illa m e x , I n c .,
N e w Y ork , N e w Y ork

M a y 2 6 , 198 1

526

Federal R eserve Bulletin □ June 1981

Orders A pproved

Under Ba n k M erger A ct

B y th e B o a r d o f G o v e r n o r s

A p p lic a n t

B a n k (s)

M ile s S ta te B a n k

R eserv e

E ffe c tiv e

B ank

d a te

S t. M ic h a e ls B a n k

S t. M ic h a e ls , M a r y la n d

M a y 2 8 , 198 1

S t. M ic h a e ls , M a r y la n d

S u is s e S ta te B a n k

T h e F o r e s t H ill S t a t e B a n k

F o r e s t H ill, M a r y la n d

M a y 2 8 , 198 1

F o r e s t H ill, M a r y la n d

B y F ederal R eserve B anks

A p p lic a n t

B a n k (s)

F i r s t V ir g in ia B a n k o f R o a ­

F i r s t V ir g in ia B a n k — W e s t ,

n o k e V a lle y ,

R eserv e

E ffe c tiv e

B ank

d a te

R ic h m o n d

A p r il 9 , 198 1

C h ic a g o

M arch 27,

N a r r o w s , V ir g in ia

R o a n o k e , V ir g in ia
G SB B ank,

G a y lo r d S ta te B a n k ,

G a y l o r d , M ic h ig a n

G a y l o r d , M ic h ig a n

1 981

P e n d in g C a s e s In v o l v in g t h e B o a r d o f G o v e r n o r s *

* T h is l i s t o f p e n d i n g c a s e s d o e s n o t i n c l u d e s u i t s
a g a i n s t t h e F e d e r a l R e s e r v e B a n k s in w h i c h t h e B o a r d

S e c u r itie s I n d u s tr y A s s o c ia tio n

v. B o a rd o f G o ver­

n o r s , e t a l . , f il e d O c t o b e r 1 9 8 0 , U . S . C . A . f o r t h e
D is tr ic t o f C o lu m b ia .

o f G o v e r n o r s is n o t n a m e d a p a r t y .

A . G . B e c k e r , I n c . v . B o a r d o f G o v e r n o r s , e t a l . , f il e d
L o u i s J . R o u s s e l v . B o a r d o f G o v e r n o r s , f il e d M a y

O c to b e r 1 9 8 0 , U .S .D . C . fo r th e D is tr ic t o f C o lu m ­
b ia .

1 9 8 1 , U . S . C . A . f o r t h e D i s t r i c t o f C o lu m b ia .
W il s h i r e O i l C o m p a n y o f T e x a s v . B o a r d o f G o v e r ­

A . G . B e c k e r , I n c . v . B o a r d o f G o v e r n o r s , e t a l . , f il e d

n o r s , e t a l . , f il e d A p r il 1 9 8 1 , U . S . C . A . f o r t h e T h ir d

O c to b e r 1 9 8 0 , U .S .C . A . fo r th e D is tr ic t o f C o lu m ­

C ir c u it .

b ia .

P e o p le o f th e S ta t e o f A r k a n s a s v . B o a r d o f G o v e r ­
n o rs,

e t a l.,

f il e d

M arch

1981, U .S .C .A .

fo r th e

F ir s t B a n k & T ru st C o m p a n y v . B o a r d o f G o v e r n o r s ,
f il e d F e b r u a r y 1 9 8 1 , U . S . D . C . f o r t h e E a s t e r n D i s ­

& Jam es H .

G o v e r n o r s , f il e d F e b r u a r y

S ib b e t v . B o a r d

of

19 8 1 , U .S .D .C . fo r th e

O p tio n A d v is o r y S e r v ic e , I n c . v . B o a r d o f G o v e r n o r s ,
e t a l . , f il e d F e b r u a r y 1 9 8 1 , U . S . C . A . f o r t h e S e c o n d

F o u r t h C ir c u it .
B a n k e rs A s s o c ia tio n ,

e t a l.

v.

B o a rd

of

G o v e r n o r s , e t a l . , f il e d S e p t e m b e r 1 9 8 0 , U . S . D . C .
fo r th e D is tr ic t o f N e b r a s k a .
R e p u b lic o f T e x a s C o r p o r a tio n v . B o a r d o f G o v e r n o r s ,

C ir c u it .

B o a rd

G o v e r n o r s , f il e d S e p t e m b e r 1 9 8 0 , U . S . C . A . f o r t h e

N eb ra sk a

D i s t r i c t o f C o lu m b ia .

9 to 5

C ir c u it .
I n d e p e n d e n t I n su ra n c e A g e n ts o f A m e r ic a a n d I n d e ­
p e n d e n t I n s u r a n c e A g e n t s o f V ir g in ia v . B o a r d o f

t r ic t o f K e n t u c k y .
S t. R o s e

In su ra n c e A g e n ts o f M is s o u r i v . B o a r d o f G o v e r ­
n o r s , f il e d S e p t e m b e r 1 9 8 0 , U . S . C . A . f o r t h e E ig h t h

W e s te r n D is tr ic t o f A r k a n s a s .

E llis E .

I n d e p e n d e n t I n s u r a n c e o f A m e r ic a a n d I n d e p e n d e n t

O r g a n iz a tio n f o r
of

G o vern o rs,

W om en
f il e d

O ffic e

W o rk ers

D ecem b er

v.

1980,

U .S .D .C . fo r th e D is tr ic t o f M a s s a c h u s e t ts .
S e c u r itie s I n d u s tr y A s s o c ia tio n

v. B o a rd o f G o ver­

n o r s , e t a l . , f il e d O c t o b e r 1 9 8 0 , U . S . D . C . f o r t h e
D is tr ic t o f C o lu m b ia .




f il e d S e p t e m b e r 1 9 8 0 , U . S . C . A . f o r t h e F i f t h C ir ­
c u it .
A . G . B e c k e r , I n c . v . B o a r d o f G o v e r n o r s , e t a l . , f il e d
A u g u s t 1 9 8 0 , U . S . D . C . f o r t h e D i s t r i c t o f C o lu m b ia .
O te r o

S a v in g s

G overn o rs,

and
f il e d

Loan
A u gu st

D is tr ic t o f C o lu m b ia .

A s s o c ia tio n
1980,

v.

B o a rd

U .S .D .C .

fo r

of
th e

Legal D evelopm ents

E d w i n F . G o r d o n v . B o a r d o f G o v e r n o r s , e t a l . , f il e d
U .S . L e a g u e o f S a v in g s A s s o c i a t i o n s v . D e p o s ito r y
I n s titu tio n s D e r e g u la tio n

C o m m itte e ,

e t a l.,

f il e d

J u n e 1 9 8 0 , U . S . D . C . f o r t h e D i s t r i c t o f C o lu m b ia .
B e r k o v i t z , e t a l . v . G o v e r n m e n t o f I r a n , e t a l . , f il e d
J u n e 1 9 8 0 , U .S .D .C . fo r th e N o r th e r n D is tr ic t o f
M e r c a n tile T e x a s C o r p o r a tio n v . B o a r d o f G o v e r n o r s ,
f il e d M a y 1 9 8 0 , U . S . C . A . f o r t h e F i f t h C ir c u it .
T r u s te e

v.

U n ite d

S ta te s ,

f il e d

A p r il

of

G o vern o rs,

f il e d

and

TGB

C o.

S ep tem b er

v.

1979,

U . S . C . A . f o r t h e E i g h t h C ir c u it .
D o n a ld W . R ie g e l, J r. v . F e d e r a l O p e n M a r k e t C o m ­
m i t t e e , f il e d J u ly 1 9 7 9 , U . S . D . C . f o r t h e D i s t r i c t o f
C o lu m b ia .
S e c u r ity

B a n co rp

and

S e c u r ity

N a tio n a l

B ank

v.

C r o c k e tt v .

1980, U .S .D .C .

N o r t h C a r o lin a .

e t a l . , f il e d N o v e m b e r 1 9 7 5 , U . S . D . C . f o r t h e S o u t h ­

e t a l . , f ile d

D a v i d M e r r ill, e t a l. v . F e d e r a l O p e n M a r k e t C o m m it­

e r n D i s t r i c t o f C a lif o r n i a .




U n ite d S ta te s ,
fo r th e

t h e N i n t h C ir c u it .
R o b e r ts F a r m s , I n c . v . C o m p tr o lle r o f th e C u r r e n c y ,

1980,

M ay

U n i t e d S t a t e s C o u r t o f C l a im s .
U ly s s e s s S .

N a tio n a l B a n c o r p o r a tio n

B o a r d o f G o v e r n o r s , f il e d M a r c h 1 9 7 8 , U . S . C . A . f o r

C a lif o r n i a .

C o rb in ,

C o u n ty
B o a rd

A u g u s t 1 9 8 0 , U . S . C . A . f o r t h e F i f t h C ir c u it .

527

E a ster n

D is tr ic t o f

t e e , f il e d M a y
C o lu m b ia .

1 9 7 5 , U .S .D .C . fo r th e D is tr ic t o f

Al

F in a n cia l and Business S tatistics
C o ntents
D om estic Financial S tatistics
A3

M o n e ta r y a g g r e g a te s a n d in t e r e s t r a te s

A4

R e s e r v e s o f d e p o s it o r y in s tit u tio n s , r e s e r v e
b a n k c r e d it

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

A s s e t s a n d lia b ilitie s
A 18

A ll r e p o r tin g b a n k s

A 19

B a n k s w ith a s s e t s o f $ 1 b illio n o r m o r e
B a n k s in N e w Y o r k C it y

A5

R e s e r v e s a n d b o r r o w in g s o f d e p o s it o r y

A 20

in s tit u tio n s

A 2 1 B a la n c e s h e e t m e m o r a n d a

A6

F e d e r a l fu n d s a n d r e p u r c h a se a g r e e m e n ts o f

A 2 2 C o m m e r c i a l a n d i n d u s t r ia l l o a n s

la r g e m e m b e r b a n k s
A 2 3 G r o s s d e m a n d d e p o s it s o f in d iv id u a ls ,
p a r tn e r s h ip s , a n d c o r p o r a t io n s
P o l ic y In s t r u m e n t s
A7

F e d e r a l R e s e r v e B a n k in t e r e s t r a te s

A8

D e p o s i t o r y in s tit u tio n s r e s e r v e r e q u ir e m e n ts

A9

M a x im u m in t e r e s t r a te s p a y a b le o n tim e a n d
s a v in g s d e p o s it s a t fe d e r a lly in s u r e d in s titu tio n s

A 10 F e d e r a l R e s e r v e o p e n m a r k e t t r a n s a c t i o n s

F in a n c ia l M a r k e t s

A 2 3 C o m m e r c ia l p a p e r a n d b a n k e r s d o lla r
a c c e p t a n c e s o u tsta n d in g
A 2 4 P r im e r a t e c h a r g e d b y b a n k s o n s h o r t - t e r m
b u s in e s s lo a n s
A 2 4 T e r m s o f le n d in g a t c o m m e r c ia l b a n k s

Federal R eserve B a n k s

A 2 5 I n t e r e s t r a t e s in m o n e y a n d c a p i t a l m a r k e t s
A 2 6 S t o c k m a r k e t— S e le c t e d s ta tis tic s

A l l C o n d itio n a n d F e d e r a l R e s e r v e n o t e s ta te m e n ts
A 12 M a t u r it y d i s t r i b u t i o n o f l o a n a n d s e c u r i t y
h o ld in g s

M onetary an d

A l l S a v in g s in s t it u t io n s — S e le c t e d a s s e t s a n d
lia b ilitie s

C r e d it A g g r e g a t e s

F e d e r a l F in a n c e

A 12 B a n k d e b i t s a n d d e p o s i t t u r n o v e r

A 2 8 F e d e r a l fis c a l a n d fin a n c in g o p e r a tio n s

A 13 M o n e y s t o c k m e a s u r e s a n d c o m p o n e n t s

A 2 9 U .S . b u d g e t r e c e ip t s a n d o u t la y s

A 14 A g g r e g a t e r e s e r v e s o f d e p o s i t o r y i n s t i t u t i o n s

A 3 0 F e d e r a l d e b t s u b je c t to s ta tu to r y lim ita tio n

a n d m e m b e r b a n k d e p o s its
A 15 L o a n s a n d s e c u r i t i e s o f a ll c o m m e r c i a l b a n k s

A 3 0 G r o s s p u b lic d e b t o f U .S . T r e a s u r y — T y p e s a n d
o w n e r sh ip
A 3 1 U .S . g o v e r n m e n t m a r k e ta b le s e c u r it i e s —
O w n e r s h i p , b y m a t u r it y

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

A 3 2 U .S . g o v e r n m e n t s e c u r itie s d e a le r s —

A 16 M a j o r n o n d e p o s i t f u n d s

A 3 3 F e d e r a l a n d fe d e r a lly s p o n s o r e d c r e d it

T r a n s a c tio n s , p o s it io n s , a n d fin a n c in g
A 17 A s s e t s a n d l i a b i l i t i e s , l a s t W e d n e s d a y - o f - m o n t h
s e r ie s




a g e n c ie s — D e b t o u ts ta n d in g

A2

Federal R eserve Bulletin □ June 1981

S e c u r it ie s M a r k e t s a n d

A 5 4 F o r e ig n b r a n c h e s o f U .S . b a n k s — B a la n c e s h e e t

C o r p o r a t e F in a n c e

d a ta
A 5 6 S e le c t e d U .S . lia b ilitie s to fo r e ig n o ffic ia l

A 3 4 N e w s e c u r ity i s s u e s — S ta te a n d lo c a l

in s tit u tio n s

g o v e r n m e n ts a n d c o r p o r a t io n s
A 3 5 O p e n -e n d in v e s tm e n t c o m p a n ie s — N e t s a le s a n d
a s s e t p o s itio n

R e p o r t e d b y B a n k s in

th e

U n it e d

S tates

A 3 5 C o r p o r a t e p r o f it s a n d t h e ir d i s t r i b u t i o n
A 3 6 N o n f i n a n c i a l c o r p o r a t i o n s — A s s e t s a n d lia b i l i t i e s
A 3 6 T o ta l n o n fa r m b u s in e s s e x p e n d itu r e s o n n e w
p la n t a n d e q u i p m e n t
A 3 7 D o m e s t ic fin a n c e c o m p a n ie s — A s s e t s a n d

A 5 6 L ia b ilit ie s to a n d c la im s o n fo r e ig n e r s
A 5 7 L ia b ilit ie s to fo r e ig n e r s
A 5 9 B a n k s ’ o w n c la im s o n fo r e ig n e r s
A 6 0 B a n k s ’ o w n a n d d o m e s tic c u s t o m e r s ’ c la im s o n
fo r e ig n e r s

lia b i l i t i e s ; b u s i n e s s c r e d i t

A 6 0 B a n k s ’ o w n c l a i m s o n u n a f f ili a t e d f o r e i g n e r s
A 6 1 C la im s o n fo r e ig n c o u n t r ie s — C o m b in e d
R eal E state

d o m e s tic o ff ic e s a n d fo r e ig n b r a n c h e s

A 3 8 M o rtg a g e m a r k e ts
A 3 9 M o r tg a g e d e b t o u t s ta n d in g

S e c u r it ie s H o l d in g s a n d

Tr a n s a c t io n s

A 6 2 M a r k e ta b le U .S . T r e a s u r y b o n d s a n d n o t e s —
F o r e ig n h o ld in g s a n d tr a n s a c tio n s

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

A 6 2 F o r e ig n o ffic ia l a s s e t s h e ld a t F e d e r a l R e s e r v e
B anks

A 4 0 T o ta l o u tsta n d in g a n d n e t c h a n g e
A 4 1 E x t e n s io n s a n d liq u id a tio n s

F low

o f

F unds

A 6 3 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

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

th e

U n it e d S t a te s

A 4 2 F u n d s r a i s e d in U . S . c r e d i t m a r k e t s
A 4 3 D ir e c t a n d in d ir e c t s o u r c e s o f fu n d s t o c r e d it
m a r k e ts

A 6 4 L i a b i l i t i e s t o u n a f f ili a t e d f o r e i g n e r s
A 6 5 C l a im s o n u n a f f ili a t e d f o r e i g n e r s

D om estic N onfinancial S tatistics

Interest a n d E xc h an g e R ates

A 4 4 N o n fin a n c ia l b u s in e s s a c t iv it y — S e le c t e d

A 6 6 D is c o u n t r a te s o f fo r e ig n c e n tr a l b a n k s

m easu res
A 4 4 O u tp u t, c a p a c it y , a n d c a p a c it y u tiliz a tio n

A 6 6 F o r e ig n s h o r t-te r m in t e r e s t r a te s
A 6 6 F o r e ig n e x c h a n g e r a te s

A 4 5 L a b o r f o r c e , e m p lo y m e n t, a n d u n e m p lo y m e n t
A 4 6 I n d u s t r ia l p r o d u c t i o n — I n d e x e s a n d g r o s s v a l u e
A 4 8 H o u s in g a n d c o n s tr u c tio n
A 4 9 C o n s u m e r a n d p r o d u c e r p r ic e s

A 67

Guide to Tabular P resen tation ,
S ta tistica l R e le a se s , and Special Tables

A 5 0 G r o s s n a t io n a l p r o d u c t a n d in c o m e
A 5 1 P e r s o n a l in c o m e a n d s a v in g

Special Tables
International S ta tistics

A 6 8 A s s e t s a n d lia b ilitie s o f U .S . b r a n c h e s a n d a g e n ­
c ie s o f fo r e ig n b a n k s , D e c e m b e r 3 1 , 1 980

A 5 2 U .S . in te r n a tio n a l t r a n s a c t io n s — S u m m a r y
A 5 3 U .S . fo r e ig n tr a d e
A 5 3 U .S . r e s e r v e a s s e ts




Domestic Financial Statistics
1.10

A3

MONETARY AGGREGATES AND INTEREST RATES
1980

1981

1980

Ql

Dec.

1981

Item
Q2

Q4

Q3

Jan.

Feb.

Mar.

Apr.

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

1 Total.............................................................
2 Required........................................................
3 Nonborrowed..................................................
4 Monetary base2..............................................

.4
.7
7.4
5.6

6.7
5.8
12.4
9.5

16.5
15.2
7.2
10.6

2.0
2.5
6.8
5.6

1.6
-.1
13.4
4.9

-1.0
-.7
8.2
4.4

-14.6
-3.9
-12.4
2.3

11.9
5.9
21.9
7.3

.0
7.2
-10.4
7.5

Concepts of money and liquid assets3
M l-A ............................................................
Ml-B..............................................................
M2.................................................................
M3.................................................................
L....................................................................

-4.8
-2.9
5.4
6.0
6.8

11.5
13.9
15.7
13.1
9.9

8.0
10.9
8.1
10.3
10.7

-18.6
6.6
8.4
12.0
12.4

-11.7
-9.8
1.2
6.9
9.5

-34.7
13.7
9.3
16.2
16.8'

-21.5
8.7
9.8
10.8
10.6'

-5.2
11.2
15.6'
9.6'
4.3

0.3
18.7
12.6
9.8
n.a.

10.8
-21.4
33.2
12.6
4.7

5.8
22.9
2.9
-3.3
10.1

12.9
1.7
15.4
18.8
9.7

15.4
-31.2
30.0
34.2
5.1'

18.9
-38.8
35.4
44.6
10.0

21.0
-53.0
41.4
51.4
3.9

7.7
-23.0
14.2
20.1
1.3

0.6
-9.7
16.0
-10.1
1.5'

5.6
-2.1
4.2
12.0
-1.7

.0

6.7

14.7

11.8

12.8

15.7

8.1

5
6
7
8
9

Time and savings deposits

Commercial banks
10 Total..........................................................
11 Savings4.......................................................
12 Small-denomination time5...........................
13 Large-denomination time6...........................
14 Thrift institutions7...........................................
15 Total loans and securities at commercial banks8

1980
Q2

1981

Q3

Q4

4.5

1981
Feb.

Ql

Apr.

May

Interest rates (levels, percent per annum)
Short-term rates

16 Federal funds9........................................................................
17 Discount window borrowing10................................................
18 Treasury bills (3-month market yield)11..................................
19 Commercial paper (3-month)11-12...........................................

12.69
12.45
9.62
11.18

9.83
10.35
9.15
9.65

15.85
11.78
13.61
15.26

16.57
13.00
14.39
15.34

19.08
13.00
15.02
16.58

15.93
13.00
14.79
15.49

14.70
13.00
13.36
13.94

15.72
13.00
13.69
14.56

18.52
13.87
16.30
17.56

10.58
7.95
11.77
12.70

10.95
8.58
12.20
13.12

12.23
9.59
13.49
14.62

12.74
9.97
14.45
15.10

12.29
9.66
14.12
14.95

12.98
10.10
14.90
15.10

12.94
10.16
14.71
15.25

13.46
10.62
15.68
15.70

13.82
10.78
15.81
16.35

Long-term rates

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

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




4. Savings deposits exclude NOW and ATS accounts at commercial banks.
5. Small-denomination time deposits are those issued in amounts of less than
$100,000.
6. Large-denomination time deposits are those issued in amounts of $100,000 or
more.
7. Savings and loan associations, mutual savings banks, and credit unions.
8. Changes calculated from figures shown in table 1.23.
9. Averages of daily effective rates (average of the rates on a given date weighted
by the volume of transactions at those rates).
10. Rate for the Federal Reserve Bank of New York.
11. Quoted on a bank-discount basis.
12. Unweighted average of offering rates quoted by at least five dealers.
13. Market yields adjusted to a 20-year maturity by the U.S. Treasury.
14. Bond Buyer series for 20 issues of mixed quality.
15. Weighted averages of new publicly offered bonds rated Aaa, Aa, and A by
Moody’s Investors Service and adjusted to an Aaa basis. Federal Reserve com­
pilations.
16. Average rates on new commitments for conventional first mortgages on new
homes in primary markets, unweighted and rounded to nearest 5 basis points, from
Dept, of Housing and Urban Development.

A4
1 .1 1

D om estic Financial Statistics □ June 1981
R E S E R V E S O F D E P O S IT O R Y IN S T IT U T IO N S , R E S E R V E B A N K C R E D IT

M illions o f dollars
End of Month figures

W ednesday Figures

1981

1981

Factors

Mar.p

Apr.P

MayP

Apr. 15 p

Apr. 22 p

Apr. 29 p

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

140,919

143,648

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

118,098
118,033
65
8,751
8,734
17

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

144,065

143,214

146,123

144,630

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

119.785
119.785

122,542
120,841
1,701
8,839
8,720
119

119,678
119,095
583
8,835
8,720
115

9 Loans.........................................................................
10 Float .........................................................................
11 Other Federal Reserve a ssets...........................

35
1,004
2,925
10,106

69
1,343
3,195
10,258

20
2,154
3,085
10,131

1,142
3,419
10,147

156
864
3,439
10,283

112
2,278
3,244
10,483

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

11,156
2,653
13,506

11,154
2,818
13,538

11,154
2,818
13,544

11,154
2,818
13,516

11,154
2,818
13,524

132,553
472

134,553
498

135,631
509

134,983
496

3,045
319
342

3,353
411
295

3,210
342
283

4,782
26,722

4,875
27,173

4,784
26,822

May 6 p

May 13 p

May 20 p

May 21P

145,009

143,559

145,178

143,990

120,593
120,071
522
8,800
8,720
80

118.191
118.191

121.587
121.587

120,112
120,112

8.720
8.720

8.720
8.720

8.720
8.720

89
2,471
2,508
10,549

1,734
4,295
10,619

1,975
3,044
9,851

2,923
2,371
9,864

11,154
2,818
13,530

11,154
2,818
13,610

11,154
2,818
13,539

11,154
2,818
13,543

11,154
2,818
13,551

135,045
500

134,344
503

134,783
510

135,775
514

135,742
509

135,958
506

3,033
347
285

3,969
393
320

3,536
580
301

4,175
300
353

3,299
555
271

3,119
274
276

2,830
258
241

4,893
26,665

4,897
28,496

4,927
27,940

4,728
27,741

4,711
25,944

4,938
27,834

4,884
26,835

Supplying R eserve F unds
1

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

8.720
8.720

A bsorbing R eserve F unds
15 Currency in circulation........................................
16 Treasury cash holdings........................................
Deposits, other than member bank reserves,
with Federal Reserve Banks
17
Treasury..............................................................
18
F o reig n ................................................................
19
O ther.....................................................................
20 Other Federal Reserve liabilities and
ca p ita l..............................................................
21 Reserve accounts2.................................................

Monthly averages of
daily figures

Weekly averages of daily figures for week-ending

1981

1981

Mar.

Apr.

May

Apr. 15

Apr. 22

Apr. 29

May 6

May 13

May 20

May 27

Supplying R eserve Funds
22 Reserve bank credit outstanding....................

141,272

143,452

140,540

146,497

150,722

156,848

145,828

143,456

148,131

141,814

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

118,043
117,666
377
8,779
8,722

119.687
119.687

118.311
118.311

120.036
120.036

116.292
116.292

122.239
122.239

117.193
117.193

8.720
8.720

8.720
8.720

122,897
120,037
2,860
9,286
8,720

120.787
120.787

8.720
8.720

126,168
120,465
5,703
9,152
8,720

8.720
8.720

8.720
8.720

8.720
8.720

8.720
8.720

28

Held under repurchase agreements .........

57

432

566

29
30
31
32

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

298
656
3,261
10,235

2,333
2,156
10,556

1,366
2,542
9,601

3,208
4,205
10,328

446
1,306
3,160
10,490

549
8,572
4,926
10,618

1,988
3,757
10,576

3,683
3,820
10,941

3,847
3,440
9,885

1,851
4,082
9,968

33 Gold s to c k ..............................................................

11,154
2,818
14,002

11,154
2,818
14,061

11,154
2,818
13,555

11,154
2,818
13,516

11,154
2,818
13,529

11,154
2,818
13,534

11,154
2,818
13,539

11,154
2,818
13,539

11,154
2,818
13,549

11,154
2,818
13,555

133,915
494

134,991
508

135,908
502

135,496
497

135,078
498

134,701
508

135,610
516

136,285
512

136,040
507

136,624
501

3,032
474
313

4,460
476
311

2,288
346
275

2,296
388
341

3,089
319
316

5,737
326
266

3,141
312
277

3,692
286
240

3,085
270
221

2,880
299
245

4,855
26,164

4,674
26,063

4,444
24,304

4,650
30,317

4,965
33,957

5,002
37,813

4,557
28,926

4,617
25,334

4,652
30,877

4,707
24,084

34 Special drawing rights certificate a c c o u n t...
35 Treasury currency outstanding........................
A bsorbing R eserve F unds
36 Currency in circulation........................................
37 Treasury cash holdings........................................
Deposits, other than member bank reserves,
with Federal Reserve Banks
38
T reasury..............................................................
39
F oreign ................................................................
40
O ther.....................................................................
41 Other Federal Reserve liabilities and
c a p ital..............................................................
42 Reserve accounts2 ...............................................\

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




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

Member Banks
1.12

RESERVES AND BORROWINGS
Millions of dollars

A5

Depository Institutions

Monthly averages of daily figures
Reserve classification

1 Reserve balances with Reserve Banks1.........
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

Vault cash at institutions with required
reserve balances2......................................
Vault cash equal to required reserves at
other institutions......................................
Surplus vault cash at other institutions3 ..
Reserve balances + total vault cash4 ...........
Reserve balances + total vault cash used
to satisfy reserve requirements4-5 ...........
Required reserves (estim a te d )........................
Excess reserve balances at Reserve Banks4-6 .
Total borrowings at Reserve Banks...........
Seasonal borrowings at Reserve Banks
Large comm ercial banks
Reserves held..........................................................
Required..............................................................
E x c e ss...................................................................
Small commercial banks
Reserves held..........................................................
R equired..............................................................
E x c e ss...................................................................
U.S. agencies and branches
Reserves held..........................................................
Required..............................................................
E x cess...................................................................
A ll other institutions
Reserves held..........................................................
Required..............................................................
E x cess...................................................................

1979

1980

1981

Dec.

Sept.

Oct.

Nov.

32,473

29,164

29.976

29,215
15.311

26.664
18.149

27,114
19,293

26.591
17.824

26,722
17,327

27.117
17,189

26,822
17,773

Dec.

Jan. p

Feb./'

Mar.P

Apr . p

May/’

11,344

11.811

11.678

11.876

12.602

13,587

12.187

11,687

11,687

12,124

n .a.
n .a.
43,972

n a.
n a.
41 .164

n.a.
n .a.
41.815

439
2.996
44.674

704
4.843
44,940

700
5,006
46,520

763
4.874
44.524

1,237
4.403
44,155

1.204
4.298
44,395

1,310
4,339
44,683

n .a.
43,578
394
.473
82

n a.
40,908
256
1.311
26

n.a.
41.498
317
1.335
67

41.678
40.723
955
2.156
99

40.097
40.067
30
1.617
116

41,514
41,025
489
1,405
120

39,650
39.448
202
1.278
148

39.752
39.372
380
1.004
197

40.097
40.071
26
1.343
161

40,344
40,213
131
2,154
259

24,940
25.819
-879

26,267
26,605
-3 3 8

24.874
25,328
-4 5 4

24.772
25,145
-3 7 3

24.894
25.519
-625

25,033
25,450
-417

13,719
13,523
196

13,935
13,690
245

13.305
13.235
70

13.386
13.229
157

13.628
13.558
70

13,773
13,633
140

260
230
30

253
228
25

388
366
22

461
450
11

444
432
12

576
545
31

494
495
-1

513
502
11

502
519
-1 7

605
548
57

611
562
49

649
585
64

n a.

n a.

n.a.

n .a.

Weekly averages of daily figures for week ending

24 Reserve balances with Reserve Banks1.........
25 Total vault cash (estim a te d ).............................
26
Vault cash at institutions with required
reserve balances2......................................
27
Vault cash equal to required reserves at
other institutions......................................
28
Surplus vault cash at other institutions3 ..
29 Reserve balances + total vault cash4 ...........
30 Reserve balances + total vault cash used
31 Required reserves (estim a te d )........................
32 Excess reserve balances at Reserve Banks4-6 .
33
Total borrowings at Reserve Banks...........
34
Seasonal borrowings at Reserve Banks
Large comm ercial banks
35 Reserves held..........................................................
36
R equired..............................................................
37
E x c e ss...................................................................
Small comm ercial banks
38 Reserves held..........................................................
39
Required..............................................................
40
E x cess...................................................................
U.S. agencies and branches
41 Reserves held..........................................................
42
Required..............................................................
43
E x c e ss...................................................................
A ll other institutions
44 Reserves held..........................................................
45
Required..............................................................
46
E x cess...................................................................

Mar. 25 p

Apr. 1/’

27.158
16,496

27.409
17.135

11.152
1,208
4.136
43.760

Apr. 8 p

Apr. 15 p

Apr. 22 p

Apr. 29p

May 6 p

May 13 p

May 20 p

May 21 p

25.743
17.467

26.665
17,681

28.258
16.155

27,940
17,353

27.741
17.947

25.944
18.562

27.834
16.711

26,835
17,627

11.560

111.873

11.991

10.971

11,845

12.298

12.686

11.449

11,940

1.217
4.358
44.650

1.184
4.410
43,298

1.194
4.496
44.434

1.186
3.998
44.503

1,238
4,270
45,379

1.298
4.351
45.776

1.311
4.565
44,591

1.187
4.075
44,635

1,384
4,303
44,552

39.624
39.464
160
888
200

40.292
39.642
650
1.464
220

38,888
38.837
51
887
162

39.938
39.620
318
1.142
149

40.505
40.739
-2 3 4
864
149

41.109
41,004
105
2,278
175

41.425
41.089
336
2.471
198

40.026
39.928
98
1.734
226

40.560
40.356
204
1.975
271

40,249
39,810
439
2,923
309

24.348
25,066
-718

25.592
25.324
268

24.263
24.701
-4 3 8

24.949
25,344
-3 95

24,806
25.935
- 1 .1 2 9

25.501
26.031
-5 3 0

26,381
26.174
207

24.507
25.367
-8 6 0

25.166
25.482
-3 1 6

25.056
25,032
24

13.492
13.387
105

13.584
13.340
244

13.267
13.163
104

13.363
13,269
94

13,696
13,787
-9 1

14.131
13.990
141

14.088
13,937
151

13.679
13.547
132

13,706
13.618
88

13,724
13,572
152

444
460
- 16

440
431
9

446
437
9

455
443
12

436
430
6

435
422
13

429
408
21

476
430
46

654
643
11

669
627
42

626
551
75

570
547
23

583
536
47

624
564
60

611
587
24

630
561
69

602
570
32

625
584
41

648
613
35

735
579
156

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




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

A6
1 .1 3

D om estic Financial Statistics □ June 1981
FEDER AL FUNDS A N D

REPUR CH ASE AG REEM ENTS

L arge M em b er B an k s'

Averages of daily figures, in millions of dollars
1981, week ending Wednesday
By maturity and source
Apr. 1

One day and continuing contract
1 Commercial banks in United S t a t e s ......................................
2 Other depository institutions, foreign banks and foreign
official institutions, and U .S . government agencies .
3 Nonbank securities d e a ler s........................................................
4 All other...........................................................................................

Apr. 8

Apr. 15

Apr. 22

Apr. 29r

May 6

May 13

May 20

May 27

48,803

57,586

56,645

53,824

49,914

52,324

49,016

45,222

44,399

14,932
2,832
19,608

14,318
2,778
19,050

13,549
2,582
19,324

12,735
2,206
16,284

13,021
3,166
20,316

13,716
3,265
19,922

12,875
2,816
19,090

13,812
2,561
19,403

13,650
2,782
19,708

A ll other maturities
5 Commercial banks in United S t a t e s ......................................
6 Other depository institutions, foreign banks and foreign
official institutions, and U .S. government agencies .
7 Nonbank securities d e a ler s .......................................................
8 All oth er...........................................................................................

3,475

3,210

3,481

4,749

3,520

3,524

3,639

3,788

3,467

7,327
5,013
10,414

7,159
4,474
9,961

7,229
4,371
10,077

7,864
4,340
13,363

7,247
4,390
10,403

7,064
4,435
10,143

7,365
4,780
10,497

7,591
5,183
10,549

7,434
5,183
10,655

M emo : Federal funds and resale agreement loans in ma­
turities of one day or continuing contract
9 Commercial banks in United S t a t e s ......................................
10 Nonbank securities d e a ler s........................................................

15,985
3,066

17,068
3,364

14,963
2,947

16,101
2,984

14,508
3,010

13,795
2,854

13,348
2,884

14,214
2,602

13,894
2,662

1. Banks with assets of $1 billion or more as o f D ec. 31, 1977.




Policy Instruments

Al

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

Short-term
adjustment credit1

Federal Reserve
Bank

Seasonal credit

Emergency credit
to all others
under section 133

Special circumstances2

Rate on
5/31/81

Effective
date

Previous
rate

Rate on
5/31/81

Effective
date

Previous
rate

Rate on
5/31/81

Effective
date

Previous
rate

Rate on
5/31/81

Effective
date

Previous
rate

Boston..................
New York.............
Philadelphia..........
Cleveland.............
Richmond.............
Atlanta.................

14
14
14
14
14
14

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

13
13
13
13
13
13

14
14
14
14
14
14

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

13
13
13
13
13
13

15
15
15
15
15
15

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

14
14
14
14
14
14

17
17
17
17
17
17

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

16
16
16
16
16
16

Chicago.................
St. Louis...............
Minneapolis..........
Kansas City..........
Dallas...................
San Francisco.........

14
14
14
14
14
14

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

13
13
13
13
13
13

14
14
14
14
14
14

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

13
13
13
13
13
13

15
15
15
15
15
15

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

14
14
14
14
14
14

17
17
17
17
17
17

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

16
16
16
16
16
16

Range of rates in recent years4-5

Effective date

In effect Dec. 31, 1972...............
1973— Jan. 15..........................
Feb. 26..........................
Mar. 2..........................
Apr. 23..........................
May 4..........................
11..........................
18..........................
June 11..........................
15..........................
July 2..........................
Aug. 14..........................
23..........................
1974— Apr. 25..........................
30..........................
Dec. 9..........................
16..........................
1975_ Jan.

6..........................
10..........................
24..........................
Feb. 5..........................
7 .................................

Mar. 10..........................
14..........................
May 16..........................

Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

4Vi
5
5-5 Vi
5Vi

5
5Vi

5VS-53/4
53/4
53/4-6

6

6-6 Vi
6 Vi

7
7-7 Vi
IVi
lVi-%

8

m
5 V2
5 Vi
53/4

6
6
6Vi
6 V2
1
IVi
IVi

8
8

73/4-8
73/4

73/4
73/4

71/4
m
63/4-71/4
63/4

IV a
IV a
IV a
63/4
63/4

61/4

6Va

71/4

61/4-63/4
6-61/4

61/4

6

F.R.
Bank
of
N.Y.

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

5Vi-6
5Vi

5Vi
5Vi

51/4-5 Vi
51/4

51/4
51/4

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

5i/4-53/4
5i/4-53/4
53/4

51/4
53/4
53/4

1978— Jan.

6-6 Vi
6Vi
6Vi-7
7

6Vi
6Vi
7
7

7-71/4
IV a
IV a

IV a
IV a
IV a

May
July
July
Aug.
Sept.
Oct.
Nov.

9.................
20.................
11.................
12.................
3.................
10.................
21.................
22.................
16.................
20.................
1.................
3.................

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

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




Range (or
level)—
All F.R.
Banks

Effective date

6

8
8-8 Vi
8Vi
8Vi-9Vi
9Vi
10
lO-lOVi
10Vi

6

8
SVi

8Vi
9Vi
9Vi

Effective date

Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

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

lo v i-n

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

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

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

1981— May 5.................
May 8.................

13-14
14

14
14

In effect May 31, 1981

14

14

11

11-12
12

11
11
12
12

10
101/!
lOVi

4. Rates for short-term adjustment credit. For description and earlier data see

the following publications of the Board of Governors: Banking and M onetary
Statistics, 1914-1941 and 1941-1970; Annual Statistical Digest, 1971-1975, 19721976, 1973-1977, and 1974-1978.

5. In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment credit borrowings by institutions with deposits of $500 million or more
who had borrowed in successive weeks or in more than 4 weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. On Nov. 17,1980, a 2 percent surcharge was adopted which was subsequently
raised to 3 percent on Dec. 5,1980. This surcharge was raised to 4 percent on May
5, 1981.

A8
1.15

D om estic Financial Statistics □ June 1981
DEPOSITORY INSTITUTIONS RESERVE REQUIREMENTS1
Percent of deposits

Type of deposit, and deposit interval
in millions of dollars

Member bank requirements
before implementation o f the
M onetary Control Act
Percent

Effective date

7

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

N et dem and2

0-2.............................
2-10...........................
10-100........................
100-400.............................
Over 4 0 0 ...........................

m
113/4
123/4
16V4

Time and savings2 3
S a v in g s.............................
Time4
0 -5, by maturity
30-179 days ...........
180 days to 4 years
4 years or m o re . . .
Over 5, by maturity
30-179 days ...........
180 days to 4 years
4 years or more . . .

Depository institution requirements
after implementation o f the
Monetary Control A c t5
Percent

Net transaction accounts6
$0-$25 m illio n ......................
Over $25 m illio n ..................

3

12

Effective date

11/13/80
11/13/80

Nonpersonal time deposits1
By original maturity
Less than 4 years.............
4 years or m o re ................

11/13/80
11/13/80

Eurocurrency liabilities
All ty p es.............................

11/13/80

3/16/67

3

2Vi

1

6
2 Vi

1

3/16/67
1/8/76
10/30/75
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 A nnual R eport for
1976, table 13. Under provisions o f the Monetary Control A ct, depository insti­
tutions include commercial banks, mutual savings banks, savings and loan asso­
ciations, credit unions, agencies and branches o f foreign banks, and Edge Act
corporations.
2. (a) Requirement schedules are graduated, and each deposit interval applies
to that part of the deposits o f each bank. Dem and deposits subject to reserve
requirements were gross demand deposits minus cash items in process o f collection
and demand balances due from dom estic banks.
(b) The Federal Reserve Act as am ended 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 ,1 9 7 2 , 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 o f the head office o f such a bank
constituted designation of that place as a reserve city. Cities in which there were
Federal Reserve Banks or branches were also reserve cities. Any banks having net
demand deposits of $400 million or less were considered to have the character of
business of banks outside of reserve cities and were permitted to maintain reserves
at ratios set for banks not in reserve cities.
(c) Effective Aug. 24, 1978, the Regulation M reserve requirements on net
balances due from domestic banks to their foreign branches and on deposits that
foreign branches lend to U .S residents were reduced to zero from 4 percent and
1 percent respectively. The Regulation D reserve requirement on borrowings from
unrelated banks abroad was also reduced to zero from 4 percent.
(d) Effective with the reserve computation period beginning Nov. 16, 1978,
domestic deposits of Edge corporations were subject to the same reserve require­
ments as deposits of member banks.
3. (a) Negotiable order of withdrawal (NO W ) accounts and time deposits such
as Christmas and vacation club accounts were subject to the same requirements as
savings deposits.
(b) The average reserve requirement on savings and other time deposits before
implementation of the M onetary Control Act had to be at least 3 percent, the
minimum specified by law.
4. (a) Effective N ov. 2 ,1 9 7 8 , a supplementary reserve requirement o f 2 percent
was imposed on large time deposits o f $100,000 or m ore, obligations o f affiliates,
and ineligible acceptances. This supplementary requirement was eliminated with
the maintenance period beginning July 24, 1980.




Type of deposit, and
deposit interval

(b) Effective with the reserve maintenance period beginning Oct. 25, 1979, a
marginal reserve requirement o f 8 percent was added to managed liabilities in
excess o f a base amount. This marginal requirement was increased to 10 percent
beginning April 3, 1980, was decreased to 5 percent beginning June 12, 1980, and
was reduced to zero beginning July 24, 1980. Managed liabilities are defined as
large time deposits, Eurodollar borrowings, repurchase agreements against U .S .
government and federal agency securities, federal funds borrowings from non­
member institutions, and certain other obligations. In general, the base for the
marginal reserve requirement was originally the greater o f (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 o f a foreign bank for the two
statement weeks ending Sept. 26,1979. For the computation period beginning Mar.
20,1980, the base was lowered by (a) 7 percent or (b) the decrease in an institution’s
U .S. office gross loans to foreigners and gross balances due from foreign offices
o f 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 7 Vi percent above the base used to calculate
the marginal reserve in the statement week of May 14-21, 1980. In addition,
beginning Mar. 19, 1980, the base was reduced to the extent that foreign loans and
balances declined.
5. For existing nonmember banks and thrift institutions at the time o f imple­
mentation o f the Monetary Control A ct, the phase-in period ends Sept. 3, 1987.
For existing member banks the phase-in period is about three years, depending on
whether their new reserve requirements are greater or less than the old require­
ments. For existing agencies and branches of foreign banks, the phase-in ends Aug.
12,1982. All new institutions will have a two-year phase-in beginning with the date
that they open for business.
6. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment
orders of withdrawal, and telephone and preauthorized transfers (in excess o f three
per month) for the purpose o f making payments to third persons or others.
7. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which the beneficial interest is
held by a depositor that is not a natural person. A lso included are certain trans­
ferable time deposits held by natural persons, and certain obligations issued to
depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.
N o te . Required reserves must be held in the form o f deposits with Federal
Reserve Banks or vault cash. After implementation of the M onetary Control A ct,
nonmembers may maintain reserves on a pass-through basis with certain approved
institutions.

Policy Instruments
1.16

MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions
Percent per annum
Savings and loan associations and
mutual savings banks

Commercial banks

Type and maturity of deposit

In effect May 31, 1981
Percent

1 S a v in g s...........................................................................................
2 Negotiable order of withdrawal accounts 2 ......................
Time accounts 3
Fixed ceiling rates by maturity 4
3
14-89 days .5..............................................................................
4
90 days to 1 year.....................................................................
5
1 to 2 years < ............................................................................
6
2 to 2 Vi years 7 .......................................................................
7
2Vi to 4 years 7 .......................................................................
8
4 to 6 years 8 ............................................................................
9
6 to 8 years 8 ............................................................................
10
8 years or more 8 ...................................................................
11
Issued to governmental units (all maturities) 1 0 .........
12
Individual retirement accounts and Keogh (H .R . 10)
plans (3 years or m ore) 1011......................................
13
14

A9

514
5V4

5Va
53/4

Effective
date

8/1/79
1/1/80

IV2
73/4

Percent

Effective
date

7/1/73
1/1/74

51h
5>/4

7/1/79
12/31/80

(6)
6

1/1/80

53/4
5 3/4

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

5

51/2

5!/2

bVi

0)
0)

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

IV a

11/1/73

(6)
73/4

12/23/74

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

6/1/78

73/4

7/6/77

6/1/78

1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loan
associations.
2. For authorized states only, federally insured commercial banks, savings and
loan associations, cooperative banks, and mutual savings banks in Massachusetts
and New Hampshire were first permitted to offer negotiable order of withdrawal
(NOW ) accounts on Jan. 1, 19/4. Authorization to issue NOW accounts was ex­
tended to similar institutions throughout New England on Feb. 27, 1976, and in
New York State on Nov. 10, 1978, and in New Jersey on D ec. 28, 1979. Author­
ization to issue NOW accounts was extended to similar institutions nationwide
effective Dec. 31, 1980.
3. For exceptions with respect to certain foreign time deposits see the F e d e r a l
R e s e r v e B u lle tin for October 1962 (p. 1279), August 1965 (p. 1084), and Feb­
ruary 1968 (p. 167).
4. Effective Nov. 10, 1980, the minimum notice period for public unit accounts
at savings and loan associations was decreased to 14 days and the minimum maturity
period for time deposits at savings and loan associations in excess of $100,000 was
decreased to 14 days. Effective Oct. 30, 1980, the minimum maturity or notice
period for time deposits was decreased from 30 days to 14 days for mutual savings
Banks.
5. Effective Oct. 30, 1980, the minimum maturity or notice period for time
deposits was decreased from 30 days to 14 days for commercial banks.
6. N o separate account category.
7. N o minimum denomination. Until July 1, 1979, a minimum of $1,000 was
required for savings and loan associations, except in areas where mutual savings
banks permitted lower minimum denominations. This restriction was removed for
deposits maturing in less than 1 year, effective Nov. 1, 1973.
8. No minimum denomination. Until July 1, 1979, minimum denomination was
$1,000 except for deposits representing funds contributed to an Individual Retire­
ment Account (IR A ) or a Keogh (H .R . 10) plan established pursuant to the Internal
Revenue Code. The $1,000 m in im um re q u ire m en t was re m o v ed for such accounts
in Decem ber 1975 and Novem ber 1976 respectively.
9. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for certificates
maturing in 4 years or more with minimum denominations of $1,000; however, the
amount of such certificates that an institution could issue was limited to 5 percent
of its total time and savings deposits. Sales in excess o f that amount, as well as
certificates of less than $1,000, were limited to the 6 Vi percent ceiling on time
deposits maturing in 2Vi years or more.
Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing in 4
years or more with minimum denomination of $1,000. There is no limitation on
the amount of these certificates that banks can issue.
10. Accounts subject to fixed rate ceilings. See footnote 8 for minimum denom­
ination requirements.
11. Effective January 1, 1980, commercial banks are permitted to pay the same
rate as thrifts on IR A and Keogh accounts and accounts of governmental units
when such deposits are placed in the new 2V^-year or more variable ceiling certif­
icates or in 26-week money market certificates regardless of the level of the Treasury
bill rate.
12. Must have a maturity of exactly 26 weeks and a minimum denomination of
$10,000, and must be nonnegotiable.
13. Commercial banks, savings and loan associations, and mutual savings banks
were authorized to offer money market time deposits effective June 1, 1978. The
ceiling rate for commercial banks on money market time deposits entered into
before June 5 ,1 9 8 0 , is the discount rate (auction average) on most recently issued
six-month U .S . Treasury bills. Until Mar. 15,1979, the ceiling rate for savings and
loan associations and mutual savings banks was Va percentage point higher than
the rate for commercial banks. Beginning March 15, 1979, the V4-percentage-point
interest differential is removed when the six-month Treasury bill rate is 9 percent
or more. The full differential is in effect when the six-month bill rate is 83/4 percent

6 3/4

IVi

Special variable ceiling rates by maturity
6-month money market time deposits i2.........................
2Vi years or m o r e ...................................................................




In effect May 31, 1981

Effective
date

Percent

7/1/79
12/31/80

7/1/73

6Vi
71/4

Previous maximum

73/4

Previous maximum
Percent

51/4

Effective
date

0)

5

1/ 1/74

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

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

7Vi

i 1/ 1/73'

(6)
73/4

*12/23/74 ‘

73/4

0)

7/6/77

(13)

('13')

or less. Thrift institutions may pay a maximum 9 percent when the six-month bill
rate is between 83/4 and 9 percent. Also effective March 15, 1979, interest com ­
pounding was prohibited on six-month money market time deposits at all offering
institutions. The maximum allowable rates in May for commercial banks and thrift
institutions were as follows: May 5, 15.354; May 12, 15.781; May 19, 15.275; May
23, 15.925. Effective for all six-month money market certificates issued beginning
June 5, 1980, the interest rate ceilings will be determined by the discount rate
(auction average) of most recently issued six-month U .S . Treasury bills as follows:
Bill rate
Commercial bank ceiling
Thrift ceiling
8.75 and above
bill rate + Va percent
bill rate + Va percent
8.50 to 8.75
bill rate + Va percent
9.00
7.50 to 8.50
bill rate + Va percent
bill rate + l/ i percent
7.25 to 7.50
7.75
bill rate + Vi percent
Below 7.25
7.75
7.75
The prohibition against compounding interest in these certificates continues.
14. Effective Jan. 1, 1980, commercial banks, savings and loan associations, and
mutual savings banks were authorized to offer variable-ceiling nonnegotiable time
deposits with no required minimum denomination and with maturities of 2 Vi years
or more. The maximum rate for commercial banks is 3/4 percentage point below
the yield on 2V^-year U.S. Treasury securities; the ceiling rate for thrift institutions
is Va percentage point higher than that for commercial banks. Effective Mar. 1,
1980, a temporary ceiling of l l 3/4 percent was placed on these accounts at com ­
mercial banks; the temporary ceiling is 12 percent at savings and loan associations
and mutual savings banks. Effective for all variable ceiling nonnegotiable time
deposits with maturities of 2Vi years or more issued beginning June 2, 1980, the
ceiling rates of interest will be determined as follows:
Treasury yield
Commercial bank ceiling
Thrift ceiling
12.00 and above
11.75
12.00
9.50 to 12.00
Treasury yield - Va percent
Treasury yield
B elo w 9 .50

9.2 5

9 .5 0

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

AlO

D om estic Financial Statistics □ June 1981

1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars

1980
1979

1978

Type of transaction

1981

1980
Nov.

Oct.

Jan.

D ec.

Feb.

Mar.

Apr.

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

Treasury bills

16,628
13,725
0
2,033

15,998
6,855
0
2,900

7,668
7,331
0
3,389

991
531
0
700

0
600
0
500

1,331
0
0
49

1,100
3,865
0
1,000

0
357
0
0

1,607
0
0
0

1,141
0
0
0

1,184
0
-5,170

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

912
0
12,427
-18,251
0

0
0
596
-420
0

0
0
2,368
-879
0

100
0
754
-967
0

0
0
462
0
0

0
23
990
-1,936
0

0
0
878
-1,385
0

115
0
522
-261
0

2,148
0
-12,693
7,508

2,138
0
-8,909
13,412

0
0
-596
420

0
0
-2,368
500

0
0
-754
967

0
0
-462
0

0
0
-990
1,211

0
0
-878
1,385

469
0
-522
261

|

1,526
0
2,803

523
0
-4,646
2,181

703
0
-3,092
2,970

0
0
0
0

0
0
0
220

0
0
0
0

0
0
0
0

0
0
0
400

0
0
0
0

164
0
0
0

|

1,063
0
2,545

454
0
0
1,619

811
0
-426
1,869

0
0
0
0

0
0
0
159

0
0
0
0

0
0
0
0

0
0
0
325

0
0
0
0

89
0
0
0

Gross purchases............................................................
Gross s a le s .....................................................................
R ed em p tion s................................................................

24,591
13,725
2,033

22,325
6,855
5,500

12,232
7,331
3,389

991
531
700

0
600
500

1,431
0
49

1,100
3,865
1,000

0
380
0

1,607
0
0

1,977
0
0

25
26

Matched transactions
Gross s a le s .....................................................................
Gross purchases............................................................

511,126
510,854

627,350
624,192

674,000
675,496

55,787
56,462

40,944
41,129

79,754
78,734

61,427
63,062

30,819
31,651

32,003
30,441

37,251
37,295

27
28

Repurchase agreements
Gross purchases............................................................
Gross s a le s .....................................................................

151,618
152,436

107,051
106,968

113,902
113,040

20,145
19,808

24,169
23,924

11,534
11,381

6,108
8,137

0
0

1,623
1,246

9,458
9,835

29

N et change in U .S. government secu rities.............

7,743

6,896

3,869

771

—67C

516

-4,159

452

422

1,644

1
2
3
4
5
6
7
8
9

Gross purchases............................................................
Gross s a le s .....................................................................
E x c h a n g e .......................................................................
R ed em p tion s................................................................

Others within 1 year1
Gross purchases............................................................
Gross s a le s .....................................................................
Maturity shift................................................................
E x c h a n g e .......................................................................
R ed em p tion s................................................................

}

0

1 to 5 years

1

14
15
16
17

4,188
0

Gross purchases............................................................
Gross s a le s .....................................................................
Maturity shift................................................................
Exchange .......................................................................

5 to 10 years
Gross purchases............................................................
Gross s a le s .....................................................................
Maturity shift.................................................................
E x ch a n g e.......................................................................

OO
r-

10
11
12
13

Over 10 years

18
19
20
21
22
23
24

Gross purchases............................................................
Gross s a le s .....................................................................
Maturity sh ift................................................................
Exchange .......................................................................

All maturities1

F ederal A gency O bligations

30
31
32

O utright transactions
Gross purchases............................................................
Gross s a le s .....................................................................
R ed em p tion s.................................................................

301
173
235

853
399
134

668
0
145

0
0
21

0
0
0

0
0
22

0
0
0

0
0
3

0
0
15

0
0
2

33
34

Repurchase agreements
Gross purchases............................................................
Gross s a le s .....................................................................

40,567
40,885

37,321
36,960

28,895
28,863

5,922
5,734

4,825
4,880

1,889
1,767

652
1,177

0
0

494
437

1,211
1,268

35

Net change in federal agency o bligation s................

-426

681

555

167

-55

99

-525

-3

42

-58

B ankers A cceptances

36
37

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

0
-366

0
116

0
73

0
67

0
-43

0
253

0
-776

0
0

0
298

0
-298

38

Net change in bankers accep tances...........................

-366

116

73

67

-43

253

-776

0

298

-298

39 Total net change in System Open Market
Account.......................................................

6,951

7,693

4,497

1,005

-768

868

-5,460

450

762

1,287

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




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

Reserve Banks
1.18 FEDERAL RESERVE BANKS
Millions of dollars

A ll

Condition and Federal Reserve Note Statements

Account

Apr. 29

May 6

Wednesday

End o f month

1981

1981

May 13

May 20

May 27

Mar.

Apr.

May

Consolidated condition statement
A ssets
11,154
2,818
412

11,154
2,818
403

11,154
2,818
398

11,154
2,818
403

11,154
2,818
391

11,154
2,818
468

11,154
2,818
412

11,154
2,818
396

8,572
0

1,988
0

3,683
0

3,847
0

1,851
0

656
0

2,333
0

1,366
0

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

549

0

0

0

0

298

0

0

8,720
566

8,720
0

8,720
0

8,720
0

8,720
0

8,722
57

8,720
0

8,720
0

43,613
59,118
17,306
120,037
2,860
122,897

44,363
59,118
17,306
120,787
0
120,787

39,868
59,118
17,306
116,292
0
116,292

45,815
58,818
17,606
122,239
0
122,239

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

42,078
58,370
17,218
117,666
377
118,043

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

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

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

141,304

131,495

128,695

134,806

127,764

127,776

130,740

128,397

16 Cash items in process o f co lle c tio n ........................................
17 Bank prem ises................................................................................
Other assets
18
Denom inated in foreign currencies2 .................................
19
A llo th e r .......................................................................................

11,946
469

10,142
469

10,073
469

9,647
469

11,963
470

11,107
465

9,224
467

9,096
470

6,848
3,301

6,794
3,313

6,865
3,607

6,854
2,562

6,858
2,640

7,060
2,710

6,768
3,321

6,412
2,719

Total assets...................................................................

178,252

166,588

164,079

168,713

164,058

163,558

164,904

161,462

21 Federal Reserve n o t e s ................................................................
Deposits
22
Depository institutions............................................................
23
U .S . Treasury— General account........................................
24
Foreign— Official a c c o u n ts...................................................
25
O ther.............................................................................................

122,088

122,990

123,657

123,401

123,962

120,874

121,852

123,251

37,813
5,737
326
266

28,926
3,141
312
277

25,334
3,692
286
240

30,877
3,085
270
221

24,084
2,880
299
245

26,164
3,032
474
313

26,063
4,460
476
311

24,304
2,288
346
275

15

20

L iabilities

Total deposits...............................................................

44,142

32,656

29,552

34,453

27,508

29,983

31,310

27,213

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

7,020
2,273

6,385
1,874

6,253
1,903

6,207
1,901

7,881
1,965

7,846
1,952

7,068
1,971

6,554
1,744

Total liabilities..............................................................

175,523

163,905

161,365

165,962

161,316

160,655

162,201

158,762

30 Capital paid in ................................................................................
31 S u rp lu s.............................................................................................
32 Other capital accounts................................................................

1,233
1,203
293

1,236
1,203
244

1,234
1,203
277

1,235
1,203
313

1,237
1,203
302

1,227
1,203
473

1,233
1,203
267

1,238
1,203
259

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

178,252

166,588

164,079

168,713

164,058

163,558

164,904

161,462

101,725

100,425

100,788

100,062

97,516

101,214

100,546

96,635

26

29

C apital A ccounts

34

Memo: Marketable U .S. government securities held in
custody for foreign and international account...........

Federal Reserve note statement

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

143,634
21,546
122,088

143,634
20,644
122,990

143,895
20,238
123,657

143,881
20,480
123,401

143,959
19,997
123,962

142,182
21,308
120,874

143,716
21,864
121,852

143,936
20,685
123,251

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

11,154
2,818
0
108,116

11,154
2,818
0
109,018

11,154
2,818
0
109,588

11,154
2,818
0
109,429

11,154
2,818
9
109,981

11,154
2,818
0
106,902

11,154
2,818
0
107,880

11,154
2,818
0
109,279

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

122,088

122,990

123,657

123,401

123,962

120,874

121,852

123,251

Collateral for Federal Reserve notes

38
39
40
41

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




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

A12
1 .1 9

D om estic Financial Statistics □ June 1981
FEDER AL RESER VE BANK S

M a tu r ity D is tr ib u t io n o f L o a n a n d S e c u r it y H o ld in g s

M illio n s o f d o lla r s

Type and maturity grow ings

Apr. 29

May 6

Wednesday

End of month

1981

1981

May 13

May 20

May 27

Mar. 31

Apr. 30

May 31

1 Loans— T o ta l..................................................................................
2
Within 15 days...........................................................................
3
16 days to 90 days.....................................................................
4
91 days to 1 year.......................................................................

8,572
8,558
14
0

1,988
1,896
92
0

3,683
3,543
140
0

3,847
3,754
93
0

1,851
1,810
41
0

656
616
40
0

2,333
1,905
428
0

1,366
1,317
49
0

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

549
549
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

298
298
0
0

0
0
0
0

0
0
0
0

9 U.S. government securities— T o t a l........................................
10
Within 15 days1 .........................................................................
11
16 days to 90 days.....................................................................
12
91 days to 1 year.......................................................................
13
Over 1 year to 5 yea rs............................................................
14
Over 5 years to 10 y e a r s .......................................................
15
Over 10 years.............................................................................

122,897
5,771
22,573
29,978
35,241
13,918
15,416

120,787
5,726
20,363
30,384
34,981
13,918
15,415

116,292
6,043
15,510
30,426
34,980
13,918
15,415

122,239
6,566
22,663
29,956
34,297
13,042
15,715

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

118,043
2,265
22,904
29,020
34,772
13,755
15,327

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

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

16 Federal agency obligations— T otal..........................................
17
Within 15 days1.........................................................................
16 days to 90 days.....................................................................
18
19
91 days to 1 year.......................................................................
20
Over 1 year to 5 yea rs............................................................
21
Over 5 years to 10 y e a r s .......................................................
22
Over 10 years..............................................................................

9,286
635
615
1,752
4,658
982
644

8,720
0
680
1,756
4,658
982
644

8,720
131
549
1,756
4,658
982
644

8,720
221
459
1,756
4,658
982
644

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

8,779
266
397
1,843
4,613
975
685

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

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

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

1 .2 0

B A N K D E B IT S A N D

D E P O S IT T U R N O V E R

Debits are shown in billions of dollars, turnover as ratio of debits to deposit. Monthly data are at annual rates.
1980
Bank group, or type of customer

1977

1981

1979'

1978

D ec.

Jan.

Feb.

Mar.

Apr.

75.487.3
30,276.0
45.211.3

73,621.7
29.501.3
44.120.4

668.7
556.8
1,338.3

815.4
112.4
590.1
1,517.9

262.9
959.5
176.9

257.2
1,001.9
171.8

14.2
11.3
3.5

11.6

Debits to demand deposits1 (seasonally adjusted)
1 All commercial banks..................................................................
2 Major New York City b a n k s ...................................................
3 Other bank s....................................................................................

34,322.8
13,860.6
20,462.2

40,297.8
15,008.7
25,289.1

49,775.0
18,512.7
31,262.3

69.950.2
27.352.2
42,598.0

72.402.3
29,656.0
42.746.3

73,174.6
29,752.0
43,422.5

Debits to sa\angs deposits:2 (not seasonstlly adjusted)
4
5
6
7

ATS/NOW 3
Business4 ..
Others5 .........
All accounts

5.5
21.7
152.3
179.5

17.1
56.7
359.7
432.9

83.3
77.3
515.2
675.8

218.3
119.2
704.2
1,041.6

529.3
108.2
685.7
1,323.2

526.6
93.4
553.1
1,173.1

112.8

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

129.2
503.0
85.9

139.4
541.9
96.8

163.5
646.2
113.3

222.7
865.8
150.8

244.6
956.2
161.3

253.6
952.6
168.7

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

ATS/NOW 3
Business4. ..
Others5 . . . .
All accounts

6.5
4.1
1.5
1.7

1. Represents accounts of individuals, partnerships, and corporations, and of
states and political subdivisions.
2. Excludes special club accounts, such as Christmas and vacation clubs.
3. Accounts authorized for negotiable orders o f withdrawal (NO W ) and accounts
authorized for automatic transfer to demand deposits (ATS). ATS data availability
starts with Decem ber 1978.
4. Represents corporations and other profit-seeking organizations (excluding
commercial banks but including savings and loan associations, mutual savings banks,
credit unions, the Export-Import Bank, and federally sponsored lending agencies).
5. Savings accounts other than NOW; business; and, from Decem ber 1978, ATS.




7.0
5.1
1.7
1.9

7.8
7.2
2.7
3.1

10.4
11.3
4.1
5.1

15.1
10.9
4.1
6.3

12.5
9.8
3.4
5.5

6.1

15.2
3.6
6.7

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

Monetary Aggregates
1.21

A 13

MONEY STOCK MEASURES AND COMPONENTS
Billions of dollars, averages of daily figures
Item

1977
Dec.

1978
Dec.

1979
Dec.

1980
Dec.
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

366.6
419.0
1.695.4
1.996.4
2,421.5'

365.0
422.9
1,717.4'
2,012.3'
n.a.

365.1
429.5
1,735.5
2,028.7
n.a.

117.3
249.3
370.5
785.1
263.0'

117.9
247.1
368.1'
791.2'
259.1'

119.0
246.1
367.1
791.7
257.1

358.2
409.4
1,685.1'
1,988.3
2,414.7'

358.3
415.1
1,712.4'
2,009.9'
n.a.

368.3
432.9
1,743.5
2,035.5
n.a.

115.9
242.3
51.2
31.7'
92.4
365.3
789.5
265.3'

116.8
241.4
56.8
32.9'
105.6
365.5'
796.6'
261.7'

118.5
249.8
64.6
33.4
117.1
366.5
796.9
255.9

Seasonally adjusted
M easures I

1
2
3
4
5

M-1A...........................................
M-1B...........................................
M-2.............................................
M-3.............................................
L2................................................

6
7
8
9
10

Currency......................................
Demand deposits..........................
Savings deposits............................
Small-denomination time deposits3
Large-denomination time deposits4

328.4
332.6
1.294.1
1,460.3
1.720.2

351.6
360.1
1.401.5
1.623.6
1,934.9

369.8
386.9
1,526.0
1,775.5
2,151.8

384.4
411.3
1,668.7
1.952.2
2.365.3

388.2
414.7
1,667.1
1,941.0
2,346.7

384.4
411.3
1,668.7
1.952.2
2.365.3

88.7
239.7
486.4
454.9
145.2

97.6
253.9
475.8
533.8
194.7

106.3
263.5
417.0
656.2
219.0

116.2
268.2
393.8
759.0
247.0

115.6
272.6
406.8
739.3
237.4

116.2
268.2
393.8
759.0
247.0

373.3
416.0
1,681.7
1,978.6
2,398.4'

Components

116.6
256.7
377.7
777.9
258.1

Not seasonally adjusted
M easures I

11
12
13
14
15

M-1A...................................................
M-1B...................................................
M-2.....................................................
M-3.....................................................
U .........................................................

16
17
18
19
20
21
22
23

Currency..............................................
Demand deposits..................................
Other checkable deposits5.....................
Overnight RPs and Eurodollars6 ..........
Money market mutual funds.................
Savings deposits....................................
Small-denomination time deposits3 .......
Large-denomination time deposits4.......

337.2
341.4
1,295.9
1,464.5
1,723.2

360.9
369.5
1,403.6
1,629.2
1,938.3

379.4
396.4
1,527.7
1,780.8
2,154.3

394.7
421.8
1,674.7
1,962.8
2,372.0

391.1
417.7
1,665.7
1,942.1
2,344.7

394.7
421.8
1,674.7
1,962.8
2,372.0

90.3
247.0
4.2
18.6
3.8
483.1
451.3
147.7

99.4
261.5
8.6
23.9
10.3
472.6
529.8
198.2

108.3
271.2
17.0
25.3
43.6
414.1
651.2
222.6

118.5
276.2
27.1
32.2
75.8
390.9
757.4
251.5

116.6
274.5
26.6
32.6
77.0
405.8
735.9
240.0

118.5
276.2
27.1
32.2
75.8
390.9
757.4
251.5

377.3
420.6
1,684.7
1,984.3
2,401.4'

C omponents

115.8
261.5
43.3
32.5
80.7
374.9
779.1
260.7

1. Composition of the money stock measures is as follows:
M-1A: Averages of daily figures for (1) demand deposits at all commercial banks
other than those due to domestic banks, the U.S. government, and foreign banks
and official institutions less cash items in the process of collection and Federal
Reserve float; and (2) currency outside the Treasury, Federal Reserve Banks, and
the vaults of commercial banks.
M-1B: M-1A plus negotiable order of withdrawal (NOW) and automatic transfer
service (ATS^) accounts at banks and thrift institutions, credit union share draft
accounts, ana demand deposits at mutual savings banks.
M-2: M-1B plus savings and small-denomination time deposits at all depository
institutions, overnight repurchase agreements at commercial banks, overnight Eu­
rodollars held by U.S. residents other than banks at Caribbean branches of member

3. Small-denomination time deposits are those issued in amounts of less than
$100,000.
4. Large-denomination time deposits are those issued in amounts of $100,000
or more and are net of the holdings of domestic banks, thrift institutions, the U.S.
government, money market mutual funds, and foreign banks and official institu­
tions.
5. Includes ATS and NOW balances at all institutions, credit union share draft
balances, and demand deposits at mutual savings banks.
6. Overnight (and continuing contract) RPs are those issued by commercial
banks to the nonbank public, and overnight Eurodollars are those issued by Ca­
ribbean branches of member banks to U.S. nonbank customers.
N o te . Latest monthly and weekly figures are available from the Board’s H.6(508)

M-3: M-2 plus large-denomination time deposits at all depository institutions
and term RPs at commercial banks and savings and loan associations.
2. L: M-3 plus other liquid assets such as term Eurodollars held by U.S. residents
other than banks, bankers acceptances, commercial paper, Treasury bills and other
liquid Treasury securities, and U.S. savings bonds.

and Statistics. The monetary aggregates and their components have been revised
due to new seasonal adjustment factors

banks, and money market mutual fund shares.




release. Back data are available from the Banking Section, Division of Research

A 14
1 .2 2

D om estic Financial Statistics □ June 1981
A G G R E G A T E R E S E R V E S O F D E P O S IT O R Y IN S T IT U T IO N S 1 A N D

M E M B E R B A N K D E P O S IT S

B illio n s o f d o lla r s , a v e r a g e s o f d a ily fig u r e s
1980
Item

1978
Dec.

1979
Dec.

1981

1980
D ec.
N o v .2

Oct.

D ec.

Jan.

Feb.

Mar.

Apr.

Seasonally adjusted

Total reserves3....................................................................................

41.16

43.46

40.13

41.73

41.23

40.13

40.10

39.76

40.25

40.25

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

40.29
40.93
142.2

41.98
43.13
153.7

38.44
39.58
159.8

40.42
41.52
160.9

39.17
40.73
160.7

38.44
39.58
159.8

38.70
39.56
160.1

38.45
39.58
160.6

39.25
39.87
161.3

38.91
40.10
162.2

5 Member bank deposits subject to reserve requirements5 ......................
6 Time and savings.........................................................................................................
Dem and
7
Private........................................................................................................................
8
U .S. governm ent....................................................................................................

616.1

644.5

701.8

684.7

694.3

701.8

703.8

704.3

703.6

711.3

428.7

451.2

485.6

485.5

475.4

485.6

517.4

523.3

524.7

531.1

185.1
2.2

191.5
1.8

196.0
1.9

195.6
2.4

198.1
2.2

196.0
1.9

184.1
2.3

178.9
2.1

176.9'
2.0

177.4
2.8

1

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

144.6

156.2

162.5

160.6'

161.5r

162.5'

161.0'

158.9

159.6

161.6

Member bank deposits subject to reserve requirements5 ......................

624.0

652.7

710.3

684.2

694.6

710.3

712.6

701.5

703.2

713.5

11 Time and savings.........................................................................................................
Dem and
12
Private........................................................................................................................
13
U .S. governm ent....................................................................................................

429.6

452.1

486.5

485.7

493.0

505.0

520.5

524.8

527.9

531.6

191.9
2.5

198.6
2.0

203.2
2.1

196.4
2.1

199.6
1.9

203.3
2.1

189.9
2.1

174.6
2.0

173.2
2.1

178.9
3.0

10

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




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

Monetary Aggregates
1.23

LOANS AND SECURITIES

A 15

All Commercial Banks'

B illio n s o f d o lla r s; a v e r a g e s o f W e d n e s d a y fig u r e s
1981
Category

1978
Dec.

1979
Dec.

1981

1980
Dec.

1978
Dec.
Mar.

Mar.

1,013.4*

1,134.6-*

1,237.3*

I,262.3r

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

93.3
173.2’
746.93
2 4 6 .1'1
210.5
164.7
19.3
27.17
28.2
7.5
43.61

93.8
191.8
848.9->
29 1 .H
241.3-*
184.9
18.6
28.
31.1
9.3
44.0

110.7
213.9
912.7s
324.9?
260.6"
175.2
17.6
28.7?
31.6
10.9
63.4

114.9
218.2
929.1'
332.3
266.7'
174.6
18.7'28.7
31.9'
12.0'
64.3'

1,267.0
115.3
217.6
934.2
333 112
268.3
174.5
19.7
28.8
31.9
12.1
65.8

M umo :

Total loans and securities plus loans sold29 .

15 Total loans sold to affiliates9 ...........................
16 Commercial and industrial loans plus loans
sold9..................................................................
17
Commercial and industrial loans sold9 .. .
18
Acceptances h e l d ............................................
19
Other commercial and industrial loans . . .
20
To U.S. addressees11.................................
21
To non-U.S. addressees.............................
22 Loans to foreign b a n k s ......................................

1,022.5'

1,145.04

1,248.9*

l,256.1r

94.5
173.9’
754.2-'
247.7''
210.9
165.6
20.6
27.67
28.1
7.5
46.2'

95.0
192.6
857.44
293.04
241.84
186.0
19.8
29.34
30.9
9.3
47.3

112.1
214.8
922.1?
327.0?
261.1?
176.2
18.8
29 '>?
31.4
10.9
67.5

117.2'
217.6'
921.4'
330.4
265.1'
172.0
18.6'
28.1
31.4'
12.0'
64.0'

1,265.6
118.9
218.0
928.7
333.712
267.0
172.3
19.4
28.4
31.5
12.1
64.4

1,017.1-'

1,137.64•»

1,240.0*

1,265.1'

1,269.8

1,026.2'

1,148.048

1,251.6*

1,258.9'

1,268.3

750.6-'
3.7

851.9-*.«
3.0*

915.5?
2.7

931.9'
2.8

936.9
2.7

757.93
3.7

860.44.8
3.0*

924.8?
2.7

924.2'
2.8

931.4
2.7

248.(K’ l"
1.91"
6.6
239.5
226.0
13.5
21.5

293.14.x
2.0*
8.2
282.9
264.1
18.8
18.5

326.6?
1.8
8.1
316.7
295.2
21.5
23.2

334.1
1.9
8.8
323.5
297.9
25.6
22.8

334.911.9
9.6
323.5
297.8
25.7
22.8

249. (A i"
1.91"
7.3
240.4
->->S 9
14.5
23.2

295.04 *
2.0*
9.1
283.9
264.1
19.8
20.0

328.8?
1.8
8.8
318.2
295 ">
23.0
24.9

332.2
1.9
8.8
321.5
296.3
25.2
22.2

335.612
1.9
9.3
324.4
298.9
25.5
22.1

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




Apr.

Not seasonally adjusted

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

13

1980
Dec.

Apr.

Seasonally adjusted
1

1979
Dec.

8. As of Dec. 1. 1979. loans sold to affiliates were reduced $800 million and
commercial and industrial loans sold were reduced $700 million due to corrections
of two banks in New York City.
9. Loans sold are those sold outright to a bank's own foreign branches, non­
consolidated nonbank affiliates of the bank, the bank's holding company (if not a
bank), and nonconsolidated nonbank subsidiaries of the holding companv.
10. As of Dec. 31. 1978. commercial and industrial loans sold outright were
increased $0.7 billion as the result of reclassifications, but $0.1 billion of this amount
was offset by a balance sheet reduction of $0.1 billion as noted above.
11. United States includes the 50 states and the District of Columbia.
12. An accounting procedure change bv one bank reduced commercial and in­
dustrial loans by $0.1 billion as of Apr. 1. 1981.
N o i l . Data are prorated averages of Wednesday estimates for domestically
chartered banks, based on weekly reports of a sample of domestically chartered
banks and quarterly reports of all domestically chartered banks. For foreign related
institutions, data are averages of month-end estimates based on weekly reports
from large agencies and branches and quarterly reports from all agencies, branches,
investment companies, and Edge Act corporations engaged in banking.

A 16
1 .2 4

D om estic Financial Statistics □ June 1981
M A JO R N O N D E P O S IT F U N D S O F C O M M E R C IA L B A N K S '

Monthly averages, billions of dollars
D ecem ber outstanding

Outstanding in 1980 and 1981

Source
1977

1
2
3
4
5
6

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

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

Security RP borrowings
Seasonally adjusted^ ...............................................
Not seasonally adjusted..........................................
U .S. Treasury demand balances9
Seasonally a d ju sted .................................................
Not seasonally adjusted..........................................
Time deposits, $100,000 or m ore10
Seasonally a d ju sted .................................................
Not seasonally adjusted..........................................

1978

1979

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

61.5
60.1

91.2
90.2

121.1
119.8

109.4
112.3

114.0
114.5

119.9
120.8

116.9'
120.1'

120.5'
119.9'

124.8'
122.2'

122.5'
121.7'

117.6'
117.4'

112.1
111.7

58.4
57.0

80.7
79.7

90.0
88.7

96.2
99.1

102.2
102.7

105.7
106.6

105.4'
108.6'

109.6'
109.0'

113.7'
111.1'

111.1'
110.4'

110.9'
110.6'

109.7
109.3

- 1 .5

6.8

28.1

10.3

8.9

11.4

8.9

8.2

8.3

8 .5 '

4 .0 '

4.7

3.7

3.0

2.9

2.9

2.8

2.6

2.7

2.8

2.8

2.8

- 1 2 .5
21.1
8.6

- 1 0 .2
24.9
14.7

6.5
22.8
29.3

- 1 0 .3
35.8
25.5

- 1 4 .5
38.2
23.7

- 1 2 .9
38.3
25.5

10.9
10.7
21.7

17.0
14.3
31.3

21.6
28.9
50.5

20.6
30.9
51.6

23.3
30.3
53.6

36.0
35.1

44.8
43.6

49.2
47.9

57.5
59.1

4.4
5.1

8.7
10.3

8.9
9.7

162.0
165.4

213.0
217.9

227.1
232.8

1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks. New
York investment companies majority owned by foreign banks, and Edge Act cor­
porations owned by domestically chartered and foreign banks.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. In­
cludes averages of Wednesday data for domestically chartered banks and averages
of current and previous month-end data for foreign-related institutions.
3. Other borrowings are borrowings on any instrument, such as a promissory
note or due bill, given for the purpose o f borrowing money for the banking business.
This includes borrowings from Federal Reserve Banks and from foreign banks,
term federal funds, overdrawn due from bank balances, loan RPs, and participa­
tions in pooled loans. Includes averages of daily figures for member banks and
averages of current and previous month-end data for foreign-related institutions.
4. Loans initially booked by the bank and later sold to affiliates that are still
held by affiliates. Averages of Wednesday data.
5. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million due to
corrections of two New York City banks.




Sept.

Aug.

.3
2.7

- 1 4 .2
37.3'
23 .1 '

- 1 4 .7
37.5
22.8'

- 1 6 .2
37.5'
21.2

24.3
30.8
55.2

23.1
31.0
54.1

22.9
32.5
55.4

24.5
31.4
55.9

23.2'
31.7
54.9'

20.9
31.7
52.6

21.0
33.8
54.7

56.2
58.7

59.7
59.5

58.8
60.9

63.4
61.7

68.7
65.0

67.0
65.2

67.1
65.8

67.0
65.6

11.3
9.3

11.3
14.2

11.7
12.7

8.1
6.6

8.3
9.0

6.9
7.9

8.1
8.1

11.6
10.2

12.2
12.0

237.1
232.1

240.3
236.7

242.0
241.1

247.8
250.8

257.0
263.4

268.0
272.8

272.5
276.8

270.2
274.8

272.9
272.3

- 1 4 .7 '
36.4'
2 1.7'

- 1 6 .9 '
3 8.9'
2 2 .0 '

- 2 1 .3
43.1
21.8

6. Averages of daily figures for member and nonmember banks. Before October
1980 nonmember banks were interpolated from quarterly call report data.
7. Includes averages of current and previous month-end data until August 1979;
beginning September 1979 averages of daily data.
8. Based on daily average data reported by 122 large banks beginning February
1980 and 46 banks before February 1980.
9. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
10. Averages of Wednesday figures.
N o te . Movement of federal funds, RPs, and other borrowings from nonbanks
(lines 3 and 4) is based on fluctuations in security RP borrowings (lines 13 and 14)
and borrowings from unaffiliated foreign sources (not shown).

Commercial Banks
1.25

ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS

A ll

Last-Wednesday-of-Month Series

B illio n s o f d o lla r s e x c e p t fo r n u m b e r o f b a n k s
1980

1981

Account
July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

1 Loans and investments, excluding
in te r b a n k ................................................
2 Loans, excluding interbank........................
3
Commercial and in d u stria l....................
4
O ther..............................................................
5 U.S. Treasury securities...............................
6 Other securities..............................................

1,095.3
793.4
257.1
536.3
98.7
203.3

1,108.5
801.9
259.5
542.4
101.4
205.2

1,117.9
809.1
263.9
545.2
103.2
205.6

1,134.8
821.6
269.0
552.6
104.4
208.9

1,150.8
832.8
275.7
557.1
107.1
210.9

1,177.1
851.4
281.5
569.9
111.2
214.6

1,166.0
840.2
277.6
562.6
112.0
213.8

1,167.0
839.0
276.3
562.7
113.7
214.3

1,169.7
840.8
277.7
563.1
112.8
216.2

1.187.8
855.4
285.4
570.1
115.8
216.6

1,194.6
862.4
287.9
574.5
114.9
217.3

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

154.3
17.5
32.2
45.0
59.6

148.8
18.2
29.0
45.9
55.8

156.6
17.8
31.1
46.8
60.9

155.9
18.3
31.7
47.2
58.8

175.6
16.9
30.4
56.1
72.2

194.2
19.9
28.2
63.0
83.0

159.3
18.7
25.2
54.9
60.5

165.9
18.6
30.4
54.6
62.3

166.4
17.8
31.7
53.6
63.3

181.8
18.8
38.3
57.3
67.4

180.3
19.5
25.2
62.0
73.6

D omestically C hartered
C ommercial B anks *

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

143.5

150.3

154.4

151.3

151.3

165.6

155.8

160.1

164.9

167.7

158.8

Total assets/total liabilities and capital...

1,393.1

1,407.7

1,428.9

1,442.1

1,477.7

1,537.0

1,481.0

1,493.0

1,501.1

1,537.3

1,533.7

14 D e p o sits............................................................
15
D e m a n d .......................................................
16
S a v in g s.........................................................
17
T im e ..............................................................

1,053.1
363.5
205.5
484.2

1,062.8
363.4
208.5
490.9

1,077.2
369.7
209.1
498.5

1,092.9
375.7
210.9
506.2

1,126.2
393.0
209.5
523.7

1,187.4
432.2
201.3
553.8

1,128.7
351.1
211.9
565.7

1,132.0
345.5
214.3
572.3

1,136.7
345.4
220.6
570.7

1,151.7
356.8
222.7
572.2

1,170.3
360.7
220.9
588.7

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

157.0
74.0
109.0

158.5
75.4
111.0

163.7
75.6
112.3

161.7
74.7
112.7

157.3
78.1
116.1

156.4
79.0
114.2

156.4
76.7
119.3

163.2
80.3
117.5

163.7
80.7
120.0

179.5
81.8
124.3

155.7
82.3
125.4

M emo :
21 U.S. Treasury note balances included in
borrowing.................................................
22 Number of b a n k s ..........................................

7.6
14,658

8.7
14,666

15.7
14,678

11.5
14,760

4.4
14,692

10.2
14,693

9.5
14.689

8.5
14,696

10.2
14,701

16.9
14,713

5.5
14,719

n .a.

n .a.

n .a.

n. a.

n .a.

13

A ll C ommercial B anking
Institutions3
23 Loans and investments, excluding
in terb an k .................................................
24 Loans, excluding interbank........................
25
Commercial and in d u stria l....................
26
O ther..............................................................
27 U.S. Treasury securities...............................
28 Other securities..............................................

1,194.3
881.5
308.1
573.4
105.6
207.2

1,262.4
932.5
330.6
601.9
113.6
216.3

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

178.2
17.8
31.6
66.4
62.4

218.6
20.0
29.0
85.0
84.7

n .a.

n. a.

n. a.

n .a.

34 Other assets2 ...................................................

204.3

222.7

Total assets/total liabilities and capital...

1,576.8

1,703.7

36 D ep o sits...........................................................
37
D e m a n d .......................................................
38
S av in g s.........................................................
39
T im e ..............................................................

1,122.1
388.8
209.5
523.9

1,239.9
453.6
201.6
584.7

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

211.0
129.7
113.9

210.4
135.5
117.9

M emo :
43 U.S. Treasury note balances included in
borrowing.................................................
44 Number of b a n k s ..........................................

15.7
15,084

9.5
15,120

35

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




N ote . Figures are partly estimated. They include all bank-premises subsidiaries
and other significant majority-owned domestic subsidiaries. Data for domestically
chartered commercial banks are for the last Wednesday of the month; data for
other banking institutions are for last Wednesday except at end of quarter, when
they are for the last day of the month.

A 18
1 .2 6

D om estic Financial Statistics □ June 1981
A L L L A R G E W E E K L Y R E P O R T I N G C O M M E R C I A L B A N K S w ith D o m e s t i c A s s e t s o f $ 7 5 0 M illio n o r M o r e o n
D e c e m b e r 3 1 , 1 9 7 7 , A s s e t s a n d L ia b ilitie s

Millions of dollars, Wednesday figures
Account
Apr. 1

Apr. 8

Apr. 15

Apr. 22

Apr. 29p

May 6 p

May 13 p

May 20p

May 21 p

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

60,389

53,140

62,605

55,882

55,348

56,257

54,165

53,486

59,887

21,624
31,884

19,832
31,793

21,230
35,506

18,762
38,104

19,504
42,604

19,536
33,876

19,680
30,681

19,684
35,538

19,618
29,862

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

564,884

559,173

563,476

559,516

558,693

564,727

561,634

559,557

563,308

Securities
U .S. Treasury secu rities........................................................
Trading account...................................................................
Investment account, by m a tu r ity .................................
One year or less..............................................................
Over one through five y e a r s ......................................
Over five years................................................................
Other secu rities.......................................................................
Trading account...................................................................
Investment acco u n t............................................................
U.S. government a g en cies..........................................
States and political subdivision, by maturity . . . .
One year or less..........................................................
Over one y e a r ............................................................
Other bonds, corporate stocks and secu rities.. . .

41,764
7,865
33,898
9,686
20,641
3,571
78,368
3,637
74,731
16,513
55,394
7,048
48,346
2,824

41,786
7,247
34,539
10,125
20,488
3,926
77,696
2,976
74,720
16,506
55,397
7,122
48,275
2,817

41,021
6,300
34,720
10,143
20,651
3,926
77,418
2,747
74,670
16,356
55,472
7,172
48,299
2,842

40,718
6,023
34,695
10,078
20,666
3,951
77,554
2,768
74,787
16,369
55,546
7,208
48,338
2,872

39,720
5,440
34,280
9,997
20,447
3,836
77,624
2,671
74,954
16,395
55,668
7,257
48,412
2,890

40,190
5,590
34,600
10,439
20,367
3,794
78,349
3,663
74,686
16,364
55,525
7,332
48,194
2,797

39,655
4,985
34,671
10,359
20,531
3,781
76,847
2,117
74,730
16,411
55,527
7,288
48,239
2,791

39,560
5,108
34,452
10,150
20,484
3,817
76,795
2,079
74,716
16,410
55,495
7,277
48,218
2,811

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

30,531
21,216
7,552
1,762
425,861
172,741
4,570
168,171
160,782
7,389
114,515
70,207

30,268
21,700
6,660
1,907
421,179
171,169
4,267
166,902
159,826
7,076
114,607
70,056

32,661
23,696
7,087
1,877
424,138
171,061
4,184
166,877
159,812
7,065
114,840
70,218

29,868
21,014
6,792
2,062
423,182
172,200
4,253
167,947
160,911
7,036
115,132
70,481

26,696
17,853
6,605
2,238
426,478
174,450
4,414
170,035
162,849
7.186
115,320
70,607

27,266
18,312
6,799
2,155
430,780
176,872
4,576
172,296
165,009
7,287
115,439
70,466

28,826
18,830
6,634
3,361
428,174
175,530
3,802
171,727
164,290
7,437
116,020
70,467

26,717
18,754
5,961
2,002
428,386
174,862
3,758
171,104
163,818
7,285
116,214
70,541

29,213
19,975
6,399
2,840
429,529
175,448
4,256
171,192
163,863
7,328
116,352
70,643

4,923
8,584
9,517
15,229
7,803
2,351
5,497
14,494
5,733
5,907
414,221
10,120
93,541

4,874
8,677
9,638
15.068
5,664
2,365
5,502
13,559
5,810
5,946
409,423
10,130
91,970

5,106
8,402
9,650
15,263
6,815
2,374
5,567
14,842
5,809
5,953
412,376
90,982

4,682
8,291
9,667
14,964
6,107
2,369
5,561
13,727
5,833
5,973
411,376
10,145
92,876

4,907
8,056
10,086
15,252
6,351
2,357
5,589
13,503
5,840
5,986
414,652
10,154
91,640

4,818
8,452
10,180
15,657
6,408
2,509
5,654
14,323
5,803
6,055
418,922
10,130
89,972

4,858
8,346
9,906
15,688
5,880
2,567
5,710
13,203
5,805
6,064
416,305
10,186
88,985

4,419
9,047
9,926
15,836
5,617
2,591
5,761
13,572
5,810
6,091
416,484
10,214
86,752

4,762
9,039
9,775
15,570
5,638
2,572
5,780
13,948
5,834
6,089
417,606
10,232
84,483

782,441

766,038

783,911

775,226

777,945

774,500

765,332

765,231

767,389

206,400
774
139,814
4,946
1,005
38,438
8,797
1,940
10,686
321,791
79,344
75,262

192,023
737
131,582
4,235
1,986
35,735
7,650
1,944
8,153
321,928
80,846
76,748

213,531
731
140,671
5,428
7,845
39,196
8,802
2,043
8,814
322,952
81,139
77,063

191,703
581
131,679
4,539
2,864
33,794
8,306
1,966
7,975
323,316
79,864
75,878

188,649
599
128,823
4,456
2,880
32,839
8,400
1,987
8,664
322,988
77,894
73,886

190,282
674
129,194
4,993
1,829
35,125
7,848
1,992
8,625
326,510
78,439
74,480

185,060
579
127,776
4,002
1,183
35,266
7,615
1,470
7,169
328,552
77,679
73,691

182,766
576
125,055
4,335
3,099
32,788
8,159
1,271
7,483
330,727
77,344
73,415

191,496
589
130,924
4,498
1,132
36,019
9,195
1,558
7,580
321,744
77,093
73,162

3,433
631
18
242,447
208,365
19,672
282
7,849

3,471
607
20
241,082
207,312
19,656
283
7,741

3,400
661
16
241,812
208,231
19.590
264
7,730

3,379
590
18
243,452
209,625
19,752
228
7,835

3,394
597
17
245,094
211,052
19,924
228
7,833

3,341
596

3,311
655

248,070
213,863
19,910
233
7,884

3,265
640
24
253,382
218,239
20,311
253
8,351

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

6,279

6,090

5,996

6,011

6,057

6,180

6,196

6,228

6,307

1,122
8,901
128,796

138
1,871
136,329

2,739
660
130,600

741
11,468
131,350

7,478
12,536
128,691

965
10,008
129,504

2,530
8,742
122,597

2,352
3,994
124,736

369
3,542
121,908

5

6
7
8

9
10
11
12
13
14
15
16
17
18

Loans
19 Federal funds so ld 1 ................................................................
20
To commercial b a n k s.......................................................
21
To nonbank brokers and dealers in secu rities.........
22
To others................................................................................
23 Other loans, g r o ss...................................................................
24
Commercial and industrial...............................................
Bankers acceptances and commercial paper.........
25
All o th e r ...........................................................................
26
U .S. ad d ressees..........................................................
27
Non-U .S. addressees.................................................
28
29 Real e s ta t e ................................................................................
30 To individuals for personal ex p en d itu res..................
To financial institutions
31
Commercial banks in the United S ta te s ................
Banks in foreign countries..........................................
32
Sales finance, personal finance companies, etc ..
33
34
Other financial institutions..........................................
35 To nonbank brokers and dealers in secu rities.........
36 To others for purchasing and carrying securities2 ..
37 To finance agricultural.....................................................
All o th e r ................................................................................
38
39 L ess: Unearned in c o m e .......................................................
40
Loan loss reserve........................................................
41 Other loans, n et.......................................................................
42 Lease financing receivab les.................................................
43 All other a s s e t s .......................................................................

44 Total assets.............................................................
45
46

47
48

49

50
51
52

53
54
55
56
57
58
59
60
61
62
63
64
65

66
67

68
69

Deposits
Demand d ep osits.....................................................................
Mutual savings b a n k s.......................................................
Individuals, partnerships, and corporations.............
States and political subdivisions....................................
U.S. governm ent................................................................
Commercial banks in the United S ta te s ....................
Banks in foreign countries...............................................
Foreign governments and official institutions...........
Certified and officers’ c h e c k s ........................................
Time and savings d e p o sits...................................................
Savings....................................................................................
Individuals and nonprofit o rg a n iza tio n s................
Partnerships and corporations operated for
p r o f it .........................................................................
Dom estic governmental u n it s ...................................
AH o th e r ...........................................................................
Tim e.........................................................................................
Individuals, partnerships, and corporations.........
States and political subdivisions...............................
U .S. governm ent............................................................
Commercial banks in the United S t a te s ................
Foreign governments, official institutions, and
banks .........................................................................
Liabilities for borrowed money
Borrowings from Federal Reserve B a n k s..................
Treasury tax-and-loan n o t e s ..........................................
All other liabilities for borrowed money3 ..................
Other liabilities and subordinated notes and
debentures.........................................................................

10,112

21

22
250,873
216,054
20,218
257
8,147

63,926

62,238

62,105

65,428

66,479

65,571

66,139

69,178

66,764

Total liabilities........................................................

730,936

714,527

732,587

724,005

726,821

722,840

713,621

713,753

715,822

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

51,505

51,511

51,324

51,220

51,123

51,660

51,711

51,478

51,567

70

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




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

Weekly Reporting Banks
1 .2 7

A 19

L A R G E W E E K L Y R E P O R T I N G C O M M E R C I A L B A N K S w ith D o m e s t ic A s s e t s o f $1 B illio n o r M o r e o n
D e c e m b e r 3 1 , 1 9 7 7 , A s s e t s a n d L ia b ilitie s

Millions of dollars, Wednesday figures
Account
Apr. 1

Apr. 8

Apr. 15

Apr. 22

Apr. 29 p

May. 6 p

May 13 p

May 20 p

May 21 p

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

57,386

50,342

59,105

52,409

52,165

53,382

51,273

50,775

56,554

20,833
29,695

19,151
29,842

20,463
33,482

18,023
35,489

18,855
39,948

18,814
31,915

19,097
28,586

18,825
33,172

18,834
27,596

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

527,247

521,345

525,504

521,989

521,754

526,983

524,639

522,644

526,481

Securities
U .S. Treasury securities........................................................
Trading account...................................................................
Investment account, by m a tu r ity .................................
One year or less..............................................................
Over one through five y e a r s ......................................
Over five years................................................................
Other secu rities.......................................................................
Trading account...................................................................
Investment account............................................................
U.S. government a g en cies..........................................
States and political subdivision, by maturity . . . .
One year or less..........................................................
Over one y e a r ............................................................
Other bonds, corporate stocks and secu rities.. . .

38,420
7,748
30,672
8,994
18,482
3,196
71,996
3,553
68,443
15,238
50,553
6,358
44,195
2,652

38,386
7,150
31,235
9,425
18,265
3,545
71,353
2,900
68,453
15,227
50,580
6,443
44,136
2,647

37,622
6,204
31,418
9,439
18,428
3,552
71,152
2,679
68,473
15,142
50,659
6,489
44,170
2,671

37,276
5,933
31,342
9,299
18,467
3,577
71,281
2,699
68,582
15,159
50,722
6,516
44,207
2,701

36,264
5,370
30,894
9,813
18,250
3,461
71,361
2,583
68,779
15,199
50,861
6,555
44,306
2,718

36,752
5,525
31,227
9,603
18,199
3,425
72,105
3,571
68,534
15,177
50,731
6,638
44,093
2,626

36,214
4,917
31,296
9,545
18,346
3,406
70,636
2,061
68,575
15,225
50,731
6,596
44,135
2,620

36,146
5,046
31,100
9,354
18,315
3,431
70,563
2,005
68,558
15,234
50,690
6,587
44,103
2,634

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

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

17
18

Loans
19 Federal funds sold1 ................................................................
20
To commercial b a n k s........................................................
21
To nonbank brokers and dealers in secu rities.........
22
To others................................................................................
23 Other loans, g ro ss...................................................................
24
Commercial and industrial...............................................
25
Bankers acceptances and commercial paper.........
26
All o th e r ...........................................................................
27
U.S. ad dressees..........................................................
28
Non-U .S. addressees.................................................
29
Real e s ta t e ...........................................................................
30
To individuals for personal ex p en d itu res..................
To financial institutions
Commercial banks in the United S ta te s ................
31
32
Banks in foreign countries..........................................
Sales finance, personal finance companies, etc ..
33
34
Other financial institutions..........................................
To nonbank brokers and dealers in secu rities.........
35
To others for purchasing and carrying securities2 ..
36
37
To finance agricultural production...............................
All o th e r ................................................................................
38
39 L ess: Unearned in c o m e .......................................................
40
Loan loss reserve.......................................................
41 Other loans, n et.......................................................................
42 Lease financing receivables.................................................
43 All other a s s e t s .......................................................................

27,189
18,366
7,081
1,742
400,307
163,930
4,392
159,538
152,222
7,316
108,050
61,785

26,734
18,632
6,214
1,888
395,652
162,391
4,080
158,311
151,310
7,001
108,101
61,648

28,956
20,523
6,580
1,854
398,554
162,274
4,010
158,264
151,268
6,996
108,301
61,808

26,768
18,448
6,281
2,039
397,485
163,312
4,078
159,234
152,266
6,967
108,578
62,033

24,144
15,779
6,145
2,220
400,830
165.580
4,231
161,350
154,230
7,119
108,787
62,124

23,960
15,652
6,181
2,127
405,043
167,993
4,398
163,595
156,375
7,220
108,916
61,980

26,187
16,787
6,058
3,342
402,484
166,638
3,631
163,006
155,638
7,368
109,462
61,992

24,238
16,826
5,438
1,974
402,609
165,939
3,587
162,352
155,136
7,216
109,648
62,048

26,767
18,037
5,918
2,812
402,785
166,567
4,087
162,481
155,221
7,259
109,800
62,145

4,809
8,522
9,357
14,868
7,719
2,138
5,360
13,769
5,106
5,560
389,641
9,838
90,742

4,766
8,612
9,480
14,720
5,574
2,154
5,364
12,841
5,180
5,599
384,873
9,848
89,298

5,001
8.316
9,497
14,911
6,721
2,170
5,428
14,126
5,176
5,604
387,774
9,822
88,381

4,573
8,185
9,518
14,604
6,020
2,164
5,421
13,075
5,197
5,625
386,664
9,855
90,211

4,807
8,006
9,943
14,894
6,250
2,152
5,449
12,838
5,210
5,637
389,984
9,864
88,812

4,713
8,380
10,036
15,289
6,320
2,302
5,511
13,601
5,172
5,705
394,166
9,840
87,222

4,752
8,287
9,756
15,320
5,797
2,365
5,566
12,548
5,168
5,714
391,602
9,897
86,287

4,314
8,977
9,774
15,462
5,534
2,392
5,617
12,904
5,172
5,741
391,696
9,924
84,131

4,663
8,969
9,623
15,196
5,552
2,376
5,632
13,261
5,200
5,737
392,848
9,940
81,705

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

735,741

719,826

736,757

727,976

731,399

728,156

719,780

719,471

721,110

194,026
744
130,291
4,354
865
36,805
8,717
1,924
10,327
300,228
73,286
69,529

180,190
707
122,332
3,724
1,709
34,358
7,576
1,942
7,842
300,362
74,629
70,862

200,420
697
130,866
4,862
7,078
37,707
8,725
2,042
8,442
301,566
74,813
71,114

179,029
554
122,224
3,936
2,106
32,337
8,234
1,964
7,673
302,035
73,688
70,018

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

178,451
642
119,958
4,400
1,628
33,729
7,770
1,989
8,333
305,156
72,407
68,768

173,661
552
118,689
3,532
1,082
33,929
7,536
1,459
6,881
307,131
71,717
68,042

171,165
550
115,922
3,784
2,839
31,498
8,067
1,270
7,235
309,136
71,420
67,799

179,466
561
121,546
3,968
1,005
34,396
9,119
1,556
7,314
310,085
71,196
67,571

3,162
577
18
226,942
195,055
17,828
264
7,516

3,201
546
20
225,733
194,108
17,856
264
7,416

3,133
550
16
226,753
195,237
17,865
246
7,408

3,115
536
18
228,347
196,585
18,023
210
7,519

3,126
540
17
229,924
197,999
18,154
207
7,506

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

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

3,010
587
24
237,715
204,729
18,512
235
8,011

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

6,279

6,090

5,996

6,011

6,057

6,180

6,196

6,228

6,307

1,083
8,335
121,555

133
1,716
128,451

2,679
586
122,811

711
10,710
123,646

7,176
11,662
121,383

951
9,318
121,883

2,411
8,134
115,426

2,054
3,687
117,620

302
3,304
114,606

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

66
67

68
69

Deposits
Demand d ep osits.....................................................................
Mutual savings b a n k s ........................................................
Individuals, partnerships, and corporations.............
States and political su b d ivision s....................................
U .S. governm ent................................................................
Commercial banks in the United S t a te s ....................
Banks in foreign countries...............................................
Foreign governments and official institutions...........
Certified and officers’ c h e c k s ........................................
Time and savings d ep o sits...................................................
Savings....................................................................................
Individuals and nonprofit o rgan ization s................
Partnerships and corporations operated for
p r o fit.........................................................................
Domestic governmental u n it s ....................................
All o th e r ...........................................................................
T im e.........................................................................................
Individuals, partnerships, and corporations.........
States and political subdivisions...............................
U .S. governm ent............................................................
Commercial banks in the United S t a te s ................
Foreign governments, official institutions, and
banks .........................................................................
Liabilities for borrowed money
Borrowings from Federal Reserve B a n k s..................
Treasury tax-and-loan n o t e s ..........................................
All other liabilities for borrowed m oney3 ..................
Other liabilities and subordinated notes and
debentures.....................................................................

62,402

60,809

60,732

63,989

65,046

64,123

64,708

67,698

65,169

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

687,630

671,662

668,794

680,121

683,681

679,881

671,471

671,361

672,932

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

48,112

48,164

47,963

47,855

47,717

48,275

48,309

48,110

48,178

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




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

A 20
1.28

D om estic Financial Statistics □ June 1981
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures
1981
Account
Apr. 1

Apr. 8

Apr. 15

Apr. 22

Apr. 29 p

May b P

May 13 p

May 2 0 p

May 27 p

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

24.500

20.788

24.272

20.915

21.805

22.135

19.698

19.706

20.653

15.457
8.016

13.946
7.980

14.942
9.634

12.757
8.114

13.486
9.721

13.249
10.070

14.545
7.139

13.859
8.348

12.866
5.275

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

127,325

123,605

127,576

126,513

126,725

127,833

128,544

127,644

128,801

Securities
7
8
9
10

Investment account, by m a tu r ity .................................
One year or less..............................................................
Over one through five y e a r s .....................................
Over five years................................................................

8.385
1.771
6.046
568

8.753
2.068
5.818
867

8.935
2.115
5.941
879

8.937
2.100
5.933
904

8.735
2.079
5.831
824

9.082
2.379
5.928
775

9.172
2.352
6.045
775

9.152
2.320
6.045
787

9.074
2,313
6.000
761

13
14
15
16
17
18

Investment accou n t............................................................
U .S. government ag en cies..........................................
States and political subdivision, by maturity . . . .
One year or less.........................................................
Over one v e a r ............................................................
Other bonds, corporate stocks and securities. .. .

13.851
2.635
10.596
1.362
9.234
621

13.916
2.634
10.645
1.412
9.232
638

14.001
2.637
10.722
1.437
9.285
642

14.028
2.648
10.736
1.460
9.276
643

14.031
2.637
10.756
1.484
9.272
638

14.084
2.648
10.814
1.524
9.290
622

14.116
2.648
10.844
1.558
9.286
623

14.125
2.628
10.849
1.575
9.274
648

14.162
2,621
10.884
1.604
9.279
658

7.793
3.569
3.678
545
100.319
51.025
1.494
49.532
46.942
2.590
15.432
9.550

6.547
2.829
3.079
640
97.462
50.323
1.240
49.083
46.562
2.521
15.448
9.548

8.638
4.636
3.276
726
99.083
50.124
1.068
49.055
46.623
2.432
15.469
9.566

8.764
4.707
3.270
787
97.880
50.642
1.156
49.485
47.058
2.427
15.502
9.699

8.034
3.751
3.323
960
99.043
51.431
1.248
50.183
47.661
2.522
15.549
9.700

7.069
2.812
3.365
891
100.709
52.120
1.198
50.922
48.385
2.537
15.596
9.724

8.994
4.302
3.294
1.398
99.374
51.385
870
50.515
48.028
2.486
15.770
9.767

8.251
4.673
2.721
857
99.269
50.956
936
50.019
47.472
2.547
15.806
9.805

9.017
4.502
3.448
1.067
99.690
51.347
1.060
50.288
47.714
2.574
15,866
9.829

1.205
4.251
3.954
4.399
5.370
497
458
4.178
1.171
1.852
97.296
2.251
41.025

1.274
4.409
4.081
4.221
3.359
483
442
3.874
1.217
1.856
94.389
2.253
39.285

1.459
4.077
4.079
4.231
4.512
489
448
4.628
1.210
1.871
96.001
2 252
35.721

1.355
4.073
3.894
4.167
3.743
482
434
3.889
1.222
1.873
94.784
2.254
37.588

1.373
3.804
4.174
4.203
3.780
486
434
4.109
1.238
1.880
95.926
2.255
36.531

1.334
4.090
4.300
4.388
3.811
622
431
4.291
1.218
1.894
97.597
2.252
35.708

1.250
4.024
3.935
4.537
3.645
635
434
3.992
1.212
1.900
96.263
2.246
33.796

888
4.696
4.083
4.488
3.375
620
454
4.097
1.223
1.909
96.137
2.247
33.501

1.172
4.656
3.983
4.543
3.226
618
449
4.000
1.238
1.904
96.548
2.248
32.158

218,575

207,858

214,397

208,141

210,523

211,247

205,968

205,326

202,001

74.168
398
36.998
470
155
22.134
6.945
1.633
5.434
56.985
9.560
9.171

65.830
391
32.272
379
373
21.264
5.959
1.546
3.646
57.220
9.811
9.414

75.578
376
34.904
908
2.539
24.035
6.962
1.736
4.118
58.003
9.908
9.511

64.838
277
31.849
362
744
19.791
6.381
1.629
3.805
57.798
9.727
9.341

64.827
295
31.422
368
605
19.540
6.587
1.626
4.383
57.480
9.427
9.044

66.281
343
32.369
494
352
20.536
6.157
1.698
4.332
58.197
9.454
9.062

63.612
304
30.043
351
452
22.277
5.844
1.229
3.111
58.608
9.470
9.022

62.396
305
30.100
426
731
20.067
6.303
984
3.479
58.353
9.385
8.967

64.631
291
32.276
356
193
19.328
7.259
1.299
3.629
57,826
9.399
8.966

279
108
2
47.424
40.423
1.606
37
2.481

278
114
4
47.409
40.438
1.598
37
2.498

278
116
2
48.096
41.061
1.636
33
2.538

277
106
3
48.070
40.975
1.685
33
2.540

272
107
7
48.053
40.791
1.797
38
2.568

271
118
3
48.743
41.396
1.806
52
2.533

272
173
3
49.139
41.776
1.829
51
2.566

272
141
5
48.968
41.692
1.784
46
2.524

280
149
3
48.428
41.170
1.706
46
2,527

2,876

2.838

2.827

2.837

2.859

2.955

2.917

2.922

2.978

315
2.983
39.540

3.162
3.019
40.005

430
2.405
41.455

894

473
44.674

1.860
149
38.925

940
40.256

1.041
37.114

Loans
19 Federal funds sold ^ ................................................................
20
To commercial b a n k s.......................................................
21
To nonbank brokers and dealers in secu rities.........
22
To others................................................................................
23 Other loans, g r o ss..................................................................
24
Commercial and industrial..............................................
25
Bankers acceptances and commercial paper.........
26
All o t h e r ...........................................................................
27
U .S. a d d ressees.........................................................
28
N on-U .S. addressees.................................................
29
Real e s t a t e ...........................................................................
30
To individuals for personal ex p en d itu res..................
31 To financial institutions
Commercial banks in the United S t a te s ...............
32
Banks in foreign countries..........................................
33
Sales finance, personal finance companies, e t c ...
34
Other financial institutions..........................................
35
To nonbank brokers and dealers in secu rities.........
36
To others for purchasing and carrying securities4 ..
37
To finance agricultural production...............................
38
All o th e r ................................................................................
39 L ess: Unearned in c o m e .......................................................
40
Loan loss reserve.......................................................
41 Other loans, n et.......................................................................
42 Lease financing receivab les.................................................
43 All other assets?.......................................................................
44 Total assets........................................................................
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69

Deposits
Demand dep osits.....................................................................
Mutual savings b a n k s.......................................................
Individuals, partnerships, and corporations.............
States and political subdivisions...................................
U.S. governm ent................................................................
Commercial banks in the United S t a te s ....................
Banks in foreign countries..............................................
Foreign governments and official institutions...........
Certified and officers' checks ........................................
Time and savings d e p o sits...................................................
Savings....................................................................................
Individuals and nonprofit org a n iza tio n s...............
Partnerships and corporations operated for
p r o fit.........................................................................
Dom estic governmental u n it s ...................................
All o t h e r ...........................................................................
T im e.........................................................................................
Individuals, partnerships, and co rporations.........
States and political subdivisions...............................
U .S. governm ent............................................................
Commercial banks in the United S ta te s ...............
Foreign governments, official institutions, and
banks .........................................................................
Liabilities for borrowed money
Borrowings from Federal Reserve B a n k s..................
Treasury tax-and-loan n o t e s ..........................................
All other liabilities for borrowed money'1..................
Other liabilities and subordinated notes and
debentures.........................................................................

2.249
44.770

38.158

24.307

23.576

23.900

26.775

26.299

26.398

26.367

27.355

25.375

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

202,479

191,774

198,417

192,249

194,793

195,166

189,864

189,301

185,988

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

16.096

16.084

15.980

15.892

15.730

16.081

16.104

16.025

16,013

1.
2.
3.
4.

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




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

Weekly Reporting Banks
1.29

LARGE WEEKLY REPORTING COMMERCIAL BANKS
Millions of dollars, Wednesday figures

A21

Balance Sheet Memoranda

1981
Apr.

Banks w ith A s s e ts o f

$750 M illio n

1

Apr.

8

Apr.

15

Apr.

22

Apr.

29p

May 6 p

May

13p

May

20p

May

27p

o r M ore

1 Total loans (gross} and securities adjusted1 ..................
2 Total loans (gross) adjusted1...............................................
3 Dem and deposits adjusted2 .................................................

550,385
430,253
106,568

544,355
424,872
101,162

546,434
427,996
103,885

545,626
427,353
99,223

547,759
430,414
97,582

553,455
434,916
97,070

549,815
433,312
94,446

548,285
431,930
93,392

550,494
434,005
94,457

4
5
6

Time deposits in accounts o f $100,000 or m o re...........
Negotiable C D s ...................................................................
Other time deposits............................................................

156,168
111,537
44,631

155,329
110,966
44,363

155,592
111,653
43,938

157,279
113,051
44,227

158,909
114,195
44,714

161,485
116,126
45,358

164,016
118,038
45,978

165,729
119,009
46,720

166,788
120,051
46,738

7
8
9

Loans sold outright to affiliates3........................................
Commercial and industrial...............................................
O th er.......................................................................................

2,730
1,842
889

2,710
1,849
861

2,716
1,846
870

2,691
1,854
838

2,748
1,880
868

2,705
1,869
836

2,754
1,917
838

2,778
1,946
831

2,773
1,942
831

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

514,738
404,322
98,971

508,727
398,988
93,781

510,761
401,987
96,530

509,789
401,232
92,178

512,014
404,388
90,650

517,495
408,638
89,711

513,981
407,131
87,377

512,416
405,707
86,053

514,719
407,853
87,511

13
14
15

Time deposits in accounts of $100,000 or m o re...........
Negotiable C D s ...................................................................
Other time deposits ..............................................

147,495
105,529
41,966

146,778
105,049
41,728

147,358
106,021
41,338

149,025
107,374
41,651

150,583
108,492
42,091

153,049
110,339
42,709

155,454
112,167
43,287

157,009
113,024
43,985

157,988
113,990
43,997

16
17
18

Loans sold outright to affiliates3........................................
Commercial and industrial...............................................
O th er.......................................................................................

2,692
1,813
880

2,675
1,822
852

2,680
1,819
862

2,647
1,823
824

2,692
1,842
850

2,654
1,828
826

2,697
1,868
829

2,726
1,904
822

2,718
1,896
822

125,575
103,338
27,379

122,576
99,907
23,406

124,562
101,626
24,733

123,547
100,582
23,388

124,718
101,953
22,877

126,798
103,631
23,258

126,104
102,816
21,184

125,236
101,959
21,892

126,269
103,032
24,457

36,907
27,358
9,548

36,950
27,416
9,533

37,688
28,194
9,494

37,763
28,301
9,463

37,775
28,308
9,467

38,383
28,666
9,717

38,667
28,908
9,759

38,302
28,507
9,795

37,728
28,020
9,708

Banks w ith A sse ts o f

$1 B i llio n

o r M o re

B anks in N ew Y ork C ity

19 Total loans (gross) and securities adjusted1-4 ................
20 Total loans (gross) adjusted1...............................................
21 Dem and deposits adjusted2 .................................................
22
23
24

Time deposits in accounts of $100,000 or m o re...........
Negotiable C D s ...................................................................
Other time deposits............................................................

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




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

A22
1 .3 0

D om estic Financial Statistics □ June 1981
L A R G E W E E K L Y R E P O R T IN G C O M M E R C IA L B A N K S

D o m e s t i c C la s s if ie d C o m m e r c ia l a n d I n d u s t r ia l L o a n s

Millions of dollars
Outstanding
Industry classification

Net change during

1981
Jan. 28

Feb. 25

Mar. 25

Apr. 29

May 27 p

1980

1981

04

01

1981
Mar.

Apr.

May p

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

24.383

24.472

24.654

24.570

24.623

1.170

-3 0

182

-8 4

52

2 Nondurable goods m anufacturing.........
3
Food, liquor, and tob a cco....................

19.359
4.915

18.937
4.529

19.401
4.580

19.845
4.409

20.266
4.577

974
1.041

- 1.104
-8 0 7

464
52

444
-1 7 1

421
168

4.096
3.185
3.782
3.381

4.364
2.929
3.673
3.442

4.351
2.982
3.838
3.650

4.469
3.298
4.036
3.633

4.603
3.457
3.957
3.672

- 1.054
950
184
- 147

200
- 655
-8 0
237

-1 3
53
165
208

118
316
198
-1 8

134
159
-7 9
40

4
5
6
7

Textiles, apparel, and leather.............
Petroleum re fin in g.................................
Chemicals and r u b b e r ...........................
Other nondurable g o o d s ......................

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

16.251

15.935

15.750

16.752

17.182

2.470

-6 7 7

-1 8 5

1.002

430

9 Trade................................................................
10
Commodity dealers.................................
11
Other w h o le s a le ......................................
12
Retail............................................................

25.550
2.116
12.055
11.378

25.242
1.874
11,704
11.663

25.617
1.950
11.875
11.792

26.778
2.337
12.244
12.196

26.306
1.865
12.023
12.418

1.290
444
707
139

-622
-613
-417
409

375
76
170
129

1.160
387
369
404

-4 7 2
-472
-2 2 1
222

13 Transportation, communication.
and other public u tilitie s..................
14
Transportation..........................................
15
Com m unication........................................
16
Other public utilities...............................

20.741
8.254
3.184
9.303

20.270
8.139
3.097
9.033

19.973
8.107
3.160
8.705

20.338
8.156
3.275
8.906

20.403
8.343
3.462
8.597

2.081
639
326
1.116

- 1.330
-2 6 4
- 160
-906

-2 9 7
-3 2
63
-328

365
49
115
201

65
187
186
-3 0 8

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

5.950
23.242
15.775

6.109
23.528
15.817

6.225
23.611
15.181

6.446
24.074
15.426

6.988
24.422
15.031

-3 5
1.548
1.166

232
752
-1 .7 2 8

116
83
-6 3 6

221
463
245

542
347
-395

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

151,252

150,310

150,413

154,230

155,221

10,665

-4,508

103

3,817

991

21 M emo : Term loans (original maturity
more than 1 year) included in do­
mestic lo a n s..........................................

81.794

80.147

79.298

80.333

82.441

5.247

- 2 .4 8 2

-849

1,036

2,108

20

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

NOTES TO TABLE 1.31
1. Figures include cash items in process of collection. Estimates of gross deposits
are based on reports supplied by a sample of commercial banks. Types of depositors
in each category are described in the June 1971 B ulletin , 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 Decem ber 1978
have been constructed using the new smaller sample: financial business. 27.0;
nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and other. 15.1.
3. Demand deposit ownership data for March 1981 are subject to greater than
normal errors reflecting unusual reporting difficulties associated with funds shifted
to NOW accounts authorized at year-end 1980. For the household category, the
$15.7 billion decline in demand deposits at all commercial banks between December
1980 and March 1981 has an estimated standard error of $4.8 billion.




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

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

Deposits and Commercial Paper
1 .3 1

A 23

G R O S S D E M A N D D E P O S I T S o f I n d iv id u a ls , P a r t n e r s h ip s , a n d C o r p o r a t io n s 1

Billions of dollars, estimated daily-average balances

Commercial banks
Type of holder

19792
1975
Dec.

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

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

1976
Dec.

1977
Dec.

1978
Dec.

Dec.

1980
Mar.

June

1981
Sept.

Dec.

Mar.3

236.9

250.1

274.4

294.6

302.2

288.4

288.6

302.0

315.5'

280.8

20.1
125.1
78.0
2.4
11.3

22.3
130.2
82.6
2.7
12.4

25.0
142.9
91.0
2.5
12.9

27.8
152.7
97.4
2.7
14.1

27.1
157.7
99.2
3.1
15.1

28.4
144.9
97.6
3.1
14.4

27.7
145.3
97.9
3.3
14.4

29.6
151.9
101.8
3.2
15.5

29.8
162.3
102.4 r
3.3
17.2'

30.8
144.3
86.7
3.4
15.6

Weekly reporting banks
19794
1975
Dec.

1976
Dec.

1977
Dec.

1978
Dec.

Dec.

1980
Mar.

June

1981
Sept.

Dec.

7 All holders—Individuals, partnerships, and
corporations...................................................

124.4

128.5

139.1

147.0

139.3

133.6

133.9

140.6

8 Financial business..................................................
9 Nonfinancial business.............................................
10 Consumer..............................................................
11 Foreign.................................................................
12 Other....................................................................

15.6
69.9
29.9
2.3
6.6

17.5
69.7
31.7
2.6
7.1

18.5
76.3
34.6
2.4
7.4

19.8
79.0
38.2
2.5
7.5

20.1
74.1
34.3
3.0
7.8

20.1
69.1
34.2
3.0
7.2

20.2
69.2
33.9
3.1
7.5

21.2
72.4
36.0
3.1
7.9

147.4
21.8'
78.3'
35.6'
3.1
8.6'

Mar.

133.2
21.9
69.8
30.6
3.2
7.7

For notes see bottom of page A22.

1 .3 2

C O M M E R C IA L P A P E R A N D B A N K E R S D O L L A R A C C E P T A N C E S O U T S T A N D IN G

Millions of dollars, end of period

Instrument

1977
Dec.

1978
Dec.

19791
Dec.

1980

1980
Dec.

Oct.

Nov.

1981
Dec.

Jan.

Feb.

Mar.

Apr.

Commercial paper (seasonally adjusted)
65,051

83,438

112,809

125,148

123,009

124,606

125,148

128,656

130,306

132,702

134,229

Dealer-placed paper3
Total................................................
Bank-related....................................

8,796
2,132

12,181
3,521

17,377
2,874

19.631
3.561

19,062
3,442

19,591
3,436

19,631
3,561

19,886
3,670

20,859
3,742

22,643
4,163

24,206
4,437

4 Total................................................
5 Bank-related....................................
6 Nonfinancial companies5......................

40,574
7,102
15,681

51,647
12,314
19,610

64,748
17,598
30,684

67.888
22.382
37.629

66,612
21,146
37,335

67,340
21,939
37,675

67,888
22,382
37,629

68,956
22,570
39,814

68,936
22,331
40,511

69,461
21,604
40,598

69,537
22,858
40,486

1 All issuers............................................
Financial companies2
2
3

Directly placed paper4

Bankers dollar acceptances (not seasonally adjusted)
7 Total...................................................
Holder

8 Accepting banks..................................
9 Own bills.........................................
10 Bills bought......................................
Federal Reserve Banks
11 Own account....................................
12 Foreign correspondents.....................
13 Others..................................................
Basis

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

25,450

33,700

45,321

54,744

56,610

55,226

54,744

54,465

58,084

60,089

62,320

10,434
8,915
1,519

8,579
7,653
927

9,865
8,327
1,538

10.564
8,963
1.601

11,317
9,808
1,509

10,236
8,837
1,399

10,564
8,963
1,601

9,371
7,951
1,420

9,911
8,770
1,141

10,117
8,735
1,382

10,781
9,626
1,155

954
362
13,700

1
664
24,456

704
1,382
33,370

776
1.791
41,614

566
1,915
42,813

523
1,852
42,616

776
1,791
41,614

0
1,771
43,323

0
1,399
46,779

298
1,372
48,303

0
1,383
50,156

6,378
5,863
13,209

8,574
7,586
17,540

10,270
9,640
25,411

11.776
12.712
30.257

12,254
13,445
30,911

11,774
13,670
29,782

11,776
12,712
30,257

11,903
12,816
29,746

12,976
12,979
32,129

13,292
13,451
33,347

13,634
13,368
35,319

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




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

A24
1 .3 3

D om estic Financial Statistics □ June 1981
P R IM E R A T E C H A R G E D B Y B A N K S o n S h o r t-T e r m B u sin e s s L o a n s

Percent per annum

Effective date

Rate

Effective Date

Rate

1980—Dec. 1 0 ...............
1 6 ...............
1 9 ...............

20.00
21.00
21.50

1981—Jan. 2 .................
9 .................
Feb. 3.................
23.................

20.50
20.00
19.50
19.00

1981—Mar. 1 0 ...............
1 7 ...............
Apr. 2 ...............
2 4 ................
30.................
May 4 .................
11.................
19.................
22.................

18.00
17.50
17.00
17.50
18.00
19.00
19.50
20.00
20.50

1 .3 4

Month

Average
rate

Month

Average
rate

15.25
15.63
18.31
19.77
16.57
12.63
11.48
11.12
12.23

1980—Oct........................

13.79
16.06
20.35

1981—Jan........................
Feb........................
Mar.......................
Apr.......................
May.....................

20.16
19.43
18.05
17.15
19.61

Feb........................
May......................
June .....................
July......................
Aug.......................
Sept.......................

T E R M S O F L E N D IN G A T C O M M E R C IA L B A N K S S u rvey o f L o a n s M a d e, F eb ru ary 2 - 7 , 1981

Size of loan (in thousands of dollars)
Item

All
sizes
1-24

25-49

50-99

100-499

1,000

500-999

and over

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

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

16,985,777
158,959
1.9
19.91
19.12-21.25

817.631
111.775
3.3
19.59
17.23-21.94

521,319
15,982
3.7
19.53
18.00-21.84

918,372
14,711
4.2
19.77
18.77-22.13

2,501,018
13,165
3.6
20.18
19.28-22.51

751,196
1,192
3.8
20.87
20.00-21.94

19.83
19.18-20.32

38.7
43.0
18.1

31.0
23.9

29.4

42.9
37.6
24.6

55.6
39.7
18.0

77.6
65.8
36.9

33.1
44.9
17.2

Percentage of amount of loans

6 With floating rate...........................................................
7 Made under commitment.............................................
8 With no stated m aturity...............................................

22.1

10.2

11.7

11,476,241
2,135

1.1

Long-Term Commercial and
Industrial Loans
Amount of loans (thousands of dollars).......................
Number of loans.............................................................
Weighted-average maturity (months)..........................
Weighted-average interest rate (percent per annum) .
Interquartile range1 ...................................................

2,106,841
19,309
47.8
19.26
17.92-21.00

238,914
17,320
33.4
19.06
17.00-21.00

297.407
1,355
61.8
19.31
16.25-21.00

161,491
245
40.1
20.48
20.00-21.86

1,409,030
389
48.2
19.14
18.28-20.75

Percentage of amount of loans
14 With floating rate...........................................................
15 Made under commitment.............................................

73.8
76.9

39.4
33.5

49.7

88.1

85.0
77.7

75.4
89.9

9
10
11
12
13

Construction and
Land D evelopment Loans
16
17
18
19
20

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

584,021
12,681
10.4
19.40
16.00-22.19

55.418
7.442
6.3
18.76
16.64-21.50

124,270
3,324
9.9
17.40
13.65-22.04

68,475
1,107
6.7
17.92
13.28-21.94

21
22
23
24

Percentage of amount of loans
With floating rate...........................................................
Secured by real estate...................................................
Made under commitment.............................................
With no stated m aturity...............................................

63.9
89.1
74.5
10.7

36.0
91.9
57.7
28.6

31.2
87.9
84.4
3.8

Type of construction
25 1-to 4-family..................................................................
26 Multifamily....................................................................
27 Nonresidential................................................................

40.3
15.1
44.7

77.4
4.7
18.0

54.2
43.7

All
sizes

2.1

10-24

1-9

133,859
648
11.4
20.00-22.50

201,999
160
12.4
20.77
20.50-22.19

42.1
94.3
77.0

6.2

70.5
79.7
73.8
14.0

94.8
93.6
72.7
9.5

63.7
9.3
27.0

25.4
15.0
59.6

23.4
27.9
48.7

25-49

20.20

50-99

250
and over

100-249

Loans to Farmers
28
29
30
31
32

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

1,083,356
60,769

6.2

17.92
16.21-19.25

147,558
39,249
6.4
17.36
16.10-18.27

166,464
11,339

6.2

17.71
16.21-18.81

200,977
5,871
5.9
17.52
16.10-18.50

17.85
16.46-19.25

17.79
17.45
17.91
17.37
18.31

17.54
16.34
17.42
17.52
17.63

17.87
18.06
17.72
17.16
17.85

18.14
17.20
17.36
17.58
17.22

17.37
17.85
17.53
17.66
18.84

153,148
2,456

6.8

204,451
1,457
4.8
17.92
16.61-18.81

210,756
398
7.5
18.94
15.69-20.84

16.81

18.55

By purpose of loan

33 Feeder livestock............................................................
34 Other livestock.........................................................
35 Other current operating expenses................................
36 Farm machinery and equipment..................................
37 Other .............................................................................

1. Interest rate range that covers the middle 50 percent of the total dollar amount
of loans made.
2. Fewer than 10 sample loans.




N o te .

(2)

18.06

For more detail, see the Board’s E . 2(111) statistical release,

2ol

Securities Markets
1.35

A25

INTEREST RATES Money and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1981
Instrument

1978

1979

1981, week ending

1980
Feb.

Mar.

Apr.

May

May 1

May 8

May 15

May 22

May 29

M oney M arket R ates
1 Federal funds1-2 .................................................
Commercial paper3-4
2
1-m onth............................................................
3
3-m onth............................................................
4
6-m onth............................................................
Finance paper, directly placed3-4
5
1-m onth............................................................
6
3-m onth............................................................
7
6-m onth............................................................
Bankers acceptances4-5
8
3-m onth............................................................
9
6-m onth............................................................
Certificates o f deposit, secondary market6
10
1-m onth............................................................
11
3-m onth............................................................
12
6-m onth............................................................
13 Eurodollar deposits, 3-month2 ....................
U .S. Treasury bills4
Secondary market7
14
3-m onth........................................................
15
6-m onth.......................................................
16
1-year............................................................
Auction average8
17
3-m onth........................................................
18
6-m onth.......................................................
19
1-year............................................................

7.93

11.19

13.36

15.93

14.70

15.72

18.52

16.28

18.91

18.21

18.89

18.71

7.76
7.94
7.99

10.86
10.97
10.91

12.76
12.66
12.29

15.81
15.49
14.87

14.15
13.94
13.59

14.79
14.56
14.17

17.91
17.56
16.66

15.70
15.39
14.94

18.08
17.70
16.96

18.40
18.10
17.21

18.07
17.75
16.70

17.13
16.77
15.79

7.73
7.80
7.78

10.78
10.47
10.25

12.44
11.49
11.28

15.52
14.45
14.05

13.78
13.08
12.89

14.24
13.28
12.94

17.47
15.56
14.97

15.06
13.89
13.63

17.53
15.40
14.73

18.03
15.87
15.25

17.72
15.82
15.22

16.78
15.42
14.90

8.11
n.a.

11.04
n.a.

12.78
n.a.

15.54
14.89

13.88
13.49

14.65
14.19

17.56
16.26

15.49
14.93

17.78
16.60

18.12
16.80

17.83
16.27

16.68
15.41

7.88
8.22
8.61
8.78

11.03
11.22
11.44
11.96

12.91
13.07
12.99
14.00

16.11
16.14
16.00
17.18

14.33
14.43
14.48
15.36

14.92
15.08
15.12
15.95

18.16
18.27
17.66
19.06

15.73
15.95
16.03
16.38

18.31
18.36
18.05
18.39

18.65
18.80
18.29
19.56

18.38
18.51
17.58
19.08

17.44
17.57
16.70
19.16

7.19
7.58
7.74

10.07
10.06
9.75

11.43
11.37
10.89

14.79
14.05
12.99

13.36
12.81
12.28

13.69
13.45
12.79

16.30
15.29
14.29

14.52
14.09
13.41

16.44
15.50
14.44

16.75
15.68
14.68

16.61
15.52
14.42

15.61
14.55
13.67

7.221
7.572
7.678

10.041
10.017
9.817

11.506
11.374
10.748

14.905
14.134
12.801

13.478
12.983
11.481

13.635
13.434
12.991

16.295
15.334
14.623

14.190
14.042

15.963
15.104

16.433
15.531

16.034
15.025
14.623

16.750
15.675

16.63
15.79

15.44
14.86

15.36
14.88
14.52
14.32
14.01
13.81

16.44
15.50
15.25
15.05
14.54
14.14
13.92
13.64
13.42

14.55
14.09
13.81
13.61
13.39
13.16

C apital M arket R ates

20
21
22
23
24
25
26
27
28

U.S. Treasury notes and bonds9
Constant maturities10
1-year............................................................
2-year............................................................
2 -V2-yearn ...................................................
3-year............................................................
5-year............................................................
7-year............................................................
10-year..........................................................
20-year..........................................................
30-year..........................................................

8.34
8.34

10.67
10.12

12.05
11.77

14.57
13.92

13.71
13.57

14.32
14.15

16.20
15.46

15.11
14.72

8.29
8.32
8.36
8.41
8.48
8.49

9.71
9.52
9.48
9.44
9.33
9.29

11.55
11.48
11.43
11.46
11.39
11.30

13.65
13.41
13.28
13.19
12.98
12.80

13.51
13.41
13.24
13.12
12.94
12.69

14.09
13.99
13.85
13.68
13.46
13.20

15.08
14.63
14.30
14.10
13.82
13.60

14.57
14.36
14.17
14.01
13.75
13.50

16.36
15.70
15.55
15.35
14.94
14.64
14.46
14.15
13.93

29

Com posite12
Over 10 years (lon g-term )....................

7.89

8.74

10.81

12.23

12.15

12.62

12.96

12.89

13.28

13.13

12.80

12.56

State and local notes and bonds
M oody’s series13
30
A aa................................................................
31
B aa................................................................
32
Bond Buyer series1 4 ....................................

5.52
6.27
6.03

5.92
6.73
6.52

7.85
9.01
8.59

9.46
10.15
10.10

9.50
10.40
10.16

9.78
10.85
10.62

9.90
11.28
10.78

10.00
11.40
10.90

9.80
11.20
10.83

9.70
11.20
10.73

10.00
11.20
10.64

9.07
8.73
8.92
9.12
9.45

10.12
9.63
9.94
10.20
10.69

12.75
11.94
12.50
12.89
13.67

14.22
13.35
13.89
14.27
15.37

14.26
13.33
13.90
14.47
15.34

14.66
13.88
14.39
14.82
15.56

15.15
14.32
14.88
15.43
15.95

15.23
14.50
15.03
15.43
15.94

15.23
14.53
14.89
15.54
15.96

15.12
14.18
14.82
15.46
16.01

14.99
14.00
14.73
15.31
15.90

8.96
8.97

10.03
10.02

12.74
12.70

14.90
14.58

14.71
16.12
15.94
15.68
15.81
15.48 offered
15.48
16.26
15.62
3914.41 Recently
issu es...........................

15.80
15.63

15.54
15.29

14.97

8.25
5.28

9.07
5.46

10.57
5.25

11.83
5.00

12.44
5.01

12.27
4.97

12.25
4.92

Corporate bonds
Seasoned issues15
All in d u stries............................................
A aa................................................................
A a ..................................................................
A .....................................................................
B a a ................................................................
Aaa utility bonds16
38
New i s s u e ...................................................
33
34
35
36
37

M emo : Dividend/price ratio17
40
Preferred sto ck s............................................
41
Common s to c k s ............................................

1. Weekly and monthly figures are averages of all calendar days, where the rate
for a weekend or holiday is taken to be the rate prevailing on the preceding business
day. The daily rate is the average of the rates on a given day weighted by the
volume of transactions at these rates.
2. Weekly figures are statement week averages—that is, averages for the week
ending Wednesday.
3. Unweighted average of offering rates quoted by at least five dealers (in the
case of commercial paper), or finance companies (in the case of finance paper).
Before November 1979, maturities for data shown are 30-59 days, 90-119 days,
and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and ISO179 days for finance paper.
4. Yields are quoted on a bank-discount basis, rather than an investment yield
basis (which would give a higher figure).
5. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
6. Unweighted average of offered rates quoted by at least five dealers early in
the day.
7. Unweighted average of closing bid rates quoted by at least five dealers.
8. Rates are recorded in the week in which bills are issued.
9. Yields (not compounded) are based on closing bid prices quoted by at least
five dealers.
10. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.




11.81
4.88

11.80
4.84

12.03
4.98

10.00
11.40
10.94

14.99
14.26
14.79
15.08
15.80

12.22
5.02

12.22
5.02

11. Each weekly figure is calculated on a biweekly basis and is the average of
five business days ending on the Monday following the calendar week. The biweekly
rate is used to determine the maximum interest rate payable in the following twoweek period on small saver certificates. (See table 1.16.)
12. Unweighted averages for all outstanding notes and bonds neither due nor
callable in less than 10 years, including several very low yielding “flower” bonds.
13. General obligations only, based on figures for Thursday, from Moody’s
Investors Service.
14. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
15. Daily figures from Moody’s Investors Service. Based on yields to maturity
on selected long-term bonds.
16. Compilation of the Federal Reserve. Issues included are long-term (20 years
or more). New-issue yields are based on quotations on date of offering; those on
recently offered issues (included only for first 4 weeks after termination of under­
writer price restrictions), on Friday close-of-business quotations.
17. Standard and Poor's corporate series. Preferred stock ratio based on a sample
of ten issues: four public utilities, four industrials, one financial, and one trans­
portation. Common stock ratios on the 500 stocks in the price index.

A 26
1.36

D om estic Financial Statistics □ June 1981
STOCK MARKET

Selected Statistics
1980

Indicator

1979

1978

1981

1980

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Prices and trading (averages of daily figures)
Common stock prices

1 New York Stock Exchange (Dec. 31, 1965 = 50).
2 Industrial........................................................
3 Transportation..................................................
4 Utility.............................................................
5 Finance............................................................
6 Standard & Poor’s Corporation (1941-43 = 10)1. .
7 American Stock Exchange (Aug. 31, 1973 = 100)
Volume of tradingjthousands of shares)

8 New York Stock Exchange..................................
9 American Stock Exchange..................................

53.76
58.30
43.25
39.23
56.74
96.11
144.56

55.67
61.82
45.20
36.46
58.65
107.94
186.56

68.06
78.64
60.52
37.35
64.28
118.71
300.94

78.15
92.32
77.22
38.35
67.21
135.65
349.97

76.69
90.37
75.74
37.84
67.46
133.48
347.56

76.24
89.23
74.43
38.53
70.04
132.97
344.21

73.52
85.74
72.76
37.59
68.48
128.40
338.28

76.46
89.39
77.09
37.78
72.82
133.19
347.07

77.60
90.57
80.63
38.34
74.59
134.43
363.09

76.28
88.78
76.78
38.27
74.65
131.73
365.52

28,591
3,622

32,233
4,182

44,867
6,377

54,895
7,852

46,620
6,410

45,500
6,024

42,963
4,816

53,387
5,682

54,124
6,339

45,272
5,650

Customer financing (end-of-period balances, in millions of dollars)
10 Regulated margin credit at brokers/dealers2............

11,035

11,619

14,721

14,363

14,721

14,242

14,171

14,243

14,869

11 Margin stock3........................................................
12 Convertible bonds.................................................
13 Subscription issues............................................

10,830
205
1

11,450
167
2

14,500
219
2

14,140
220
3

14,500
219
2

14,020
221
1

13,950
220
1

14,020
222
1

14,630
238
1

n.a.

Free credit balances at brokers4
14 Margin-account.....................................................
15 Cash-account........................................................

835
2,510

1,105
4,060

2,105
6,070

2,120
5,590

2,105
6,070

2,065
5,655

2,225
5,700

2,340
6,530

2,270
6,530

1
1
t

4
I

1

Margin-account debt at brokers (percentage distribution, end of period)
16 Total................................
By equity class (in percent)5

17 Under 40...........................
18 40-49................................
19 50-59................................
20 60-69................................
21 70-79................................
22 80 or more........................

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

33.0
28.0
18.0
10.0
6.0
5.0

16.0
29.0
27.0
14.0
8.0
7.0

14.0
30.0
25.0
14.0
9.0
8.0

13.0
18.0
31.0
18.0
11.0
9.0

14.0
30.0
25.0
14.0
9.0
8.0

20.0
30.0
22.0
13.0
8.0
7.0

20.0
31.0
21.0
13.0
8.0
7.0

16.0
28.0
26.0
14.0
9.0
8.0

20.8
26.8
23.7
12.6
8.1
8.0

Special miscellaneous-account balances at brokers (end of period)
21,690

21,600

21,690

21,686

21,861

44.2

47.8

46.5

47.8

47.0

48.6

50.9

49.3

47.0
8.8

44.4
7.7

46.8
6.7

44.4
7.7

43.9
9.1

43.1
8.3

41.5
7.6

41.7
9.0

23 Total balances (millions of dollars)6..

13,092

16,150

Distribution by equity status (percent)
24 Net credit status................................

41.3

25
26

45.1
13.6

Debt status, equity of
60 percent or more......................
Less than 60 percent.....................

22,548

22,748

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

May 6, 1970

Dec. 6, 1971

Nov. 24, 1972

70
50
70

80
60
80

65
50
65

55
50
55

65
50
65

1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Margin credit includes all credit extended to purchase or carry stocks or related
eauity instruments and secured at least in part by stock. Credit extended is endof-month data for member firms of the New York Stock Exchange.
In addition to assigning a current loan value to margin stock generally, Regu­
lations T and U permit special loan values for convertible bonds and stock acquired
through exercise of subscription rights.
3. A distribution of this total by equity class is shown on lines 17-22.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.




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 basedon loan values of other
collateral in the customer’s margin account or deposits of cash (usually sales pro­
ceeds) occur.
7. Regulations G, T, and U of the Federal Reserve Board of Governors, pre­
scribed in accordance with the Securities Exchange Act of 1934, limit the amount
of credit to purchase and carry margin stocks that may be extended on securities
as collateral by prescribing a maximum loan value, which is a specified percentage
of the market value of the collateral at the time the credit is extended. Margin
requirements are the difference between the market value (100 percent) and the
maximum loan value. The term “margin stocks” is defined in the corresponding
regulation.

Thrift Institutions
1.37

SAVINGS INSTITUTIONS

A ll

Selected Assets and Liabilities

Millions of dollars, end of period
1980
Account

1978

1981

1979
July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr .P

Savings and loan associations
1

Assets.....................................................

2 M ortgages............................................................
3 Cash and investment securities1 ..................
4 O th e r .....................................................................

523,542 578,962 596,620 603,295 609,320 617,773 623,939 629,829

631,228

634,405

636,859 638,737

432.808
44.884
45.850

504.068
57.460
69.700

505.309
58,401
70,695

507.152
58.461
71,246

475.688
46.341
56.933

482,839
52,165
61.616

487,036
53,336
62,923

491,895
53.435
63.990

496.495
56,146
65.132

499.973
57.302
66.664

502.812
57.572
69.445

Liabilities and net worth.......................... 523,542 578,962 596,620 603,295 609,320 617,773 623,939 629,829

509.471
56.912
72.354

631,228

634,405

636,859 638,737

6 Savings capital.....................................................
7 Borrowed m o n e y ...............................................
8
FHLBB ............................................................
9
O th e r ................................................................
10 Loans in process.................................................
11 Other .....................................................................

430.953
42.907
31,990
10.917
10,721
9.904

470.004
55,232
40.441
14,791
9.582
11,506

488.896
41.239
39.882
13.579
7.112
14.364

497.403
55.396
41.005
14.391
7.540
16.190

496.991
58.418
42.547
15.871
8.243
12.776

500.861
60.727
44.325
16.402
8.654
14.502

503.365
62.067
45.505
16.562
8.853
16.433

510,959
64.491
47.045
17.446
8.783
12.227

512.946
62.938
46.629
16.309
8.120
14.104

515.250
62.270
46,360
15.910
7.833
16.071

518.990
64,197
47,310
16.887
7.756
13.271

516.078
67.667
49.551
18,116
7.859
14.850

12 Net worth2 ............................................................

29,057

32.638

32.787

32.766

32.892

33.029

33.221

33.319

33.120

32.981

32.645

32.283

13 M emo : Mortgage loan com ­
mitments outstanding3 .............................

18,911

16,007

18.020

20.278

20.311

19.077

17.979

16,102

15.972

16.279

17,374

18,575

171,564' 171,891

172,349

173,232

5

Mutual savings banks4
14

Assets.....................................................

158,174 163,405 167,959 168,752 169,409 170,432 171,126

17
18
19
20
21

Loans
M ortgage..........................................................
O th e r .................................................................
Securities
U.S. government5 ........................................
State and local g o v ern m en t......................
Corporate and other6....................................
C a s h .......................................................................
Other assets..........................................................

22

Liabilities................................................

158,174 163,405 167,959 168,752 169,409 170,432 171,126

171,564' 171,891

23
24
25
26
27
28
29
30

D ep osits................................................................
Regular7 ............................................................
Ordinary savings........................................
Time and oth er..........................................
Other .................................................................
Other liabilities...................................................
General reserve acco u n ts...............................
M emo : Mortgage loan com ­
mitments outstanding8.............................

142,701
141.170
71,816
69,354
1,531
4.565
10,907

146,006
144,070
61,123
82,947
1,936
5,873
11,525

149.580
147.408
57.737
89.671
2.172
6,964
11.416

150.187
148.018
58.191
89.827
2.169
7.211
11.353

151,765
149,395
58.658
90,736
2.370
6.299
11.344

151.998
149.797
57.651
92.146
2,200
7.117
11.317

152,133
150,109
56.256
93,853
2,042
7,644
11,349

153.501'
151.416'
53.971'
97.445'
2.086'
6.695'
11.368'

153.143
151.051
52.737
98.314
2.092
7.426
12.957

153,332
151,346
52,035
99,311
1.986
7.753
13.412

154,805
152.630
53.049
99.581
2.174
7.265
11.163

4.400

3.182

1.939

1.849

1.883

1.817

1.682

1.476'

1.316

1,331

1.379

463,150

482,264

487,067

21.453
5.753
6,682
9.018
238,048
191,090
46.958
131.145
15.247
41,411
28,836

21.891
6.016
6.831
9.044
240.630
194.889
45.741
131.710
15.235
42.032
26.983

22,092
6,066
6.900
9,126
241.600
195.521
46.079
132.445
16,026
42.604
27.497

22.132
6.024
6.948
9.160
243,304
196,439
46.865
133,150
16.370
43,264
28.847

15
16

95.157
7.195

98,908
9.253

99.301
11.390

99,289
11.122

99.306
11.415

99.523
11.382

99.677
11.477

99,865'
11.733'

99.816
12.199

99.739
12.598

99.719
13.248

4.959
3,333
39,732
3.665
4,131

7.658
2.930
37.086
3.156
4.412

7.796
2,702
38,863
3,260
4.648

8.079
2.709
39.327
3.456
4.770

8.434
2.728
39.609
3.153
4.764

8.622
2.754
39.720
3.592
4.839

8.715
2.736
39.888
3.717
4.916

8.949'
2.390'
39,282'
4.334'
5,011'

9.000
2.378
39.256
4.133
5.107

9.032
2.376
39.223
4,205
5,177

9,203
2.359
39.236
4.238
5,231

172,3491

173,232

n.a.

Life insurance companies
31

Assets.....................................................

389,924 432,282 455,759 459,362 464,483 468,057 473,529 476,190

32
33
34
35
36
37
38
39
40
41
42

Securities
G o v ern m en t...................................................
United States9.............................................
State and l o c a l ..........................................
Foreign10......................................................
B u sin ess............................................................
B o n d s............................................................
S tock s............................................................
M ortgages............................................................
Real estate............................................................
Policy lo a n s..........................................................
Other assets..........................................................

20,009
4,822
6,402
8,785
198,105
162,587
35,518
106,167
11,764
30,146
23,733

0.338
4.888
6.428
9,022
222.332
178,371
39,757
118.421
13.007
34.825
27.563

20.736
5.325
6.361
9.050
228.645
186,385
42,260
126,461
14,164
39,649
26,104

20,833
5,386
6.421
9.026
230,477
187.839
42.638
127,357
14,184
39,925
26,586

20,853
5.361
6,474
9,018
233,652
189,586
44,066
128,089
14.460
40,258
27.171

20.942
5.390
6.484
9.068
236,115
191.229
44,886
128.977
14.702
40.548
26,765

21.204
5.568
6.568
9,068
239,150
191,753
47.397
129.878
15.183
40,878
27.236

n .a.

Credit unions

Total assets/liabilities and
capital..............................................

43

44

Federal...................................................................

45
46 Loans ou tstan d in g.............................................
47
F ederal............................................................ ..
48
State ...................................................................
49 Savings...................................................................
50
Federal (sh a r e s).............................................
51
State (shares and d ep osits).........................

For notes see bottom of page A28.




62,348

65,854

68,429

34,760
27,588
50,269
27,687
22,582
53,517
29,802
23,715

35,934
29,920
53,125
28,698
24,426
56,232
35,530
25,702

37,555
30.856
47.829
25.435
22.394
60.574
33,472
27,102

69,553

70,515

70,702

71,335

71,709

70,754

71,446

73,214

72,783

38,168
31,385
47.884
25,401
22.483
61,403
33.964
27.439

39,219
31,296
47,211
25,381
21,830
63,728
35.961
27,767

39.155
31.547
47.221
25.288
21.933
63.957
36.030
27.927

39,428
31.907
47.299
25.273
22.026
64.304
36.183
28.121

39.801
31.908
47,774
25,627
22,147
64,399
36,348
28,051

39.142
31.612
47.309
25.272
22,037
63.874
35.915
27.959

39.636
31,810
47,451
25,376
22,075
64,357
36,236
28,121

40.624
32,590
47,815
25,618
22,197
65,744
36.898
28,846

40,207
32.576
47.994
25.707
22.287
65.495
36.684
28,811

A 28
1 .3 8

D om estic Financial Statistics □ June 1981
F E D E R A L F IS C A L A N D

F IN A N C IN G O P E R A T IO N S

Millions of dollars

Calendar year
Type of account or operation

Fiscal
year

Fiscal
year

Fiscal
year

1978

1979

1980

1980

1979
H2

HI

1981
H2

Feb.

Mar.

Apr.

U.S. budget

1
2
3
4
5

Receipts'.................................................
Outlays12................................................
Surplus, or deficit(-).............................
Trust funds...........................................
Federal funds3......................................

6
7

Federal financing Bank outlays...............
Other4.....................................................

8

Surplus, or deficit ( - ) .............................
Source or financing
Borrowing from the public...................
Cash and monetary assets (decrease, or
increase ( - ) p ...............................
Other6..................................................

401,997
450,804
-4 8 ,8 0 7
12,693
-6 1 ,5 3 2

465,940
493,635
-2 7 ,6 9 4
18,335
-4 6 ,0 6 9

520,050
579,613
-5 9 ,5 6 3
8,791
-6 7 ,7 5 2

233,952
263,004
-2 9 ,0 5 2
9,679
- 3 8 ,7 7 3

270,864
289,905
-1 9 ,0 4 1
4,383
-2 3 ,4 1 8

262,152
310,972
-4 8 ,8 2 1
-2 ,5 5 1
- 4 6 ,3 0 6

38,394
53,969
-1 5 ,5 7 5
1,243
-1 6 ,8 1 9

44,623
54,217
-9 ,5 9 3
-6 0 1
-8 ,9 9 2

74,464
57,198
17,266
1,896
15,370

-

10,661
302

-1 3 ,2 6 1
793

-1 4 ,5 4 9
303

- 5 ,9 0 9
765

- 7 ,7 3 5
-5 2 2

- 7 ,5 5 2
376

- 1 ,3 4 0
-1 4 8

- 3 ,4 2 0
-3 5

- 2 ,0 8 8
-7 3

-5 9 ,1 6 6

- 4 0 ,1 6 2

-7 3 ,8 0 8

-3 4 ,1 9 7

-2 7 ,2 9 8

-5 5 ,9 9 8

-1 7 ,0 6 3

-1 3 ,0 4 8

15,251

59,106

33,641

70,515

31,320

24,435

54,764

13,916

15,138

- 3 ,7 2 5

-3 ,0 2 3
3,083

-4 0 8
6,929

-3 5 5
3,648

3,059
-1 8 2

- 3 ,4 8 2
6,345

- 6 ,7 3 0
7,964

3,909
762

- 5 ,8 5 2
3,762

-5 ,1 2 2
6,404

22,444
16,647
5,797

24,176
6,489
17,687

20,990
4,102
16,888

15,924
4,075
11,849

14,092
3,199
10,893

12,305
3,062
9,243

10,106
2,284
7,822

10,717
3,032
7,685

21,150
4,460
16,690

Off-budget entities (surplus, or deficit

U.S. budget plus off-budget, including
Federal Financing Bank

9
10
11

M emo ;
12
13
14

Treasury operating balance (level, end of
period).........................................
Federal Reserve Banks........................
Tax and loan accounts..........................

1. Effective June 1978, earned income credit payments in excess of an indi­
vidual’s tax liability, formerly treated as income tax refunds, are classified as outlays
retroactive to January 1976.
2. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was re­
classified from an off-budget agency to an on-budget agency in the Department of
Labor.
3. Half-year figures are calculated as a residual (total surplus/deficit less trust
fund surplus/deficit).
4. Includes Postal Service Fund; Rural Electrification and Telephone Revolving
Fund; and Rural Telephone Bank.
5. Includes U.S. Treasury operating cash accounts; special drawing rights; gold
tranche drawing rights; loans to International Monetary Fund; and other cash and
monetary assets.

6. Includes accrued interest payable to the public; allocations of special drawing
rights; deposit funds; miscellaneous liability (including checks outstanding) and
asset accounts; seignorage; increment on gold; net gain/loss for U.S. currency
valuation adjustment; net gain/loss for IMF valuation adjustment; and profit on
the sale of gold.
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 1981.

NOTES TO TABLE 1.37
1. Holdings of stock of the Federal Home Loan Banks are included in “other
assets.”
2. Includes net undistributed income, which is accrued by most, but not all,
associations.
3. Excludes figures for loans in process, which are shown as a liability.
4. The NAMSB reports that, effective April 1979, balance sheet data are not
strictly comparable with previous months. Beginning April 1979, data are reported
on a net-of-valuation-reserves basis. Prior to that date, data were reported on a
gross-of-valuation-reserves basis.
5. Beginning April 1979, includes obligations of U.S. government agencies. Before
that date, this item was included in “Corporate and other.”
6. Includes securities of foreign governments and international organizations
and, prior to April 1979, nonguaranteed issues of U.S. government agencies.
7. Excludes checking, club, and school accounts.
8. Commitments outstanding (including loans in process) of banks in New York
State as reported to the Savings Banks Association of the state of New York.
9. Direct and guaranteed obligations. Excludes federal agency issues not guar­
anteed, which are shown in the table under “Business” securities.




10. Issues of foreign governments and their subdivisions and bonds of the In­
ternational Bank for Reconstruction and Development.
N o te . Savings and loan associations: Estimates by the FHLBB for all associations
in the United States. Data are based on monthly reports of federally insured
associations and annual reports of other associations. Even when revised, data for
current and preceding year are subject to further revision.
Mutual savings banks: Estimates of National Association of Mutual Savings
Banks for all savings banks in the United States.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for differ­
ences between market and book values are not made on each item separately but
are included, in total, in “other assets.”
Credit unions: Estimates by the National Credit Union Administration for a
group of federal and state-chartered credit unions that account for about 30 percent
of credit union assets. Figures are preliminary and revised annually to incorporate
recent benchmark data.

Federal Finance
1 .3 9

U .S . B U D G E T R E C E IP T S A N D

A 29

O UTLAYS

Millions of dollars
Calendar year
Source or type

Fiscal
year
1978

Fiscal
year
1979

Fiscal
year
1980

1979

1980

1981

H2

HI

H2

Feb.

Apr.

Mar.

R eceipts

1 All sources1.............................................................

401,997

465,955

520,050

233,952

270,864

262,152

38,394

44,623

74,464

2 Individual income taxes, net.....................
3 Withheld...............................................
4 Presidential Election Campaign Fund...
5 Nonwithheld.........................................
6 Refunds1...............................................
Corporation income taxes
7 Gross receipts......................................
8 Refunds................................................
9 Social insurance taxes and contributions,
net....................................................
10 Payroll employment taxes and
contributions2.................................
11 Self-employment taxes and
contributions3.................................
12 Unemployment insurance.....................
13 Other net receipts4...............................

180,988
165,215
39
47,804
32,070

217,841
195,295
36
56,215
33,705

244,069
223,763
39
63,746
43,479

115,488
105,764
3
12,355
2,634

119,988
110,394
34
49,707
40,147

131,962
120,924
4
14,592
3,559

15,348
19,076
4
1,134
4,867

13,693
22,337
11
3,754
12,410

38,659
20,532
7
30,674
12,644

65,380
5,428

71,448
5,771

72,380
7,780

29,169
3,306

43,434
4,064

28,579
4,518

1,816
1,252

10,203
1,617

10,899
1,528

123,410

141,591

160,747

71,031

86,597

77,262

17,211

15,784

20,201

99,626

115,041

133,042

60,562

69,077

66,831

14,562

14,579

13,843

4,267
13,850
5,668

5,034
15,387
6,130

5,723
15,336
6,646

417
6,899
3,149

5,535
8,690
3,294

188
6,742
3,502

495
1,563
591

419
174
613

3,945
1,802
612

18,376
6,573
5,285
7,413

18,745
7,439
5,411
9,252

24,329
7,174
6,389
12,741

9,675
3,741
2,900
5,254

11,383
3,443
3,091
6,993

15,332
3,717
3,499
6,318

3,273
558
489
951

4,210
661
572
1,117

3,754
655
485
1,338

450,804

493,635

579,613

263,004

289,905

310,972

53,969

54,217

57,198

13,560
808
692
475
1,093
-54

13,274
1,681
505
924
1,093
-304

14
15
16
17

Excise taxes.............................................
Customs deposits......................................
Estate and gift taxes.................................
Miscellaneous receipts5 ............................
O utlays

18 All types1’6 .............................................................
National defense......................................
International affairs.................................
General science, space, and technology ...
Energy.....................................................
Natural resources and environment..........
Agriculture...............................................

105,186
5,922
4,742
5,861
10,925
7,731

117,681
6,091
5,041
6,856
12,091
6,238

135,856
10,733
5,722
6,313
13,812
4,762

62,002
4,617
3,299
3,281
7,350
1,709

69,132
4,602
3,150
3,126
6,668
3,193

72,457
5,430
3,205
3,997
7,722
1,892

12,841
1,005
531
826
1,016
352

Commerce and housing credit.................
Transportation.........................................
Community and regional development. ...
Education, training, employment, social
services.............................................
29 Health.....................................................
30 Income security16....................................

3,324
15,445
11,039

2,565
17,459
9,482

7,782
21,120
10,068

3,002
10,298
4,855

3,878
9,582
5,302

3,163
11,547
5,370

-204
1,468
620

377
1,605
782

321
1,685
844

26,463
43,676
146,180

29,685
49,614
160,159

30,767
58,165
193,100

14,579
26,492
85,967

16,686
29,299
94,605

15,221
31,263
107,912

2,862
5,414
18,795

2,666
5,757
19,242

2,564
6,259
18,768

18,974
3,802
3,737
9,601
43,966
-15,772

19,928
4,153
4,153
8,372
52,556
-18,489

21,183
4,570
4,505
8,584
64,504
-21,933

10,113
2,174
2,103
4,286
29,045
-12,164

9,758
2,291
2,422
3,940
32,658
-10,387

11,731
2,299
2,432
4,191
35,909
-14,769

1,955
389
425
113
6,400
-838

1,028
377
749
98
5,835
-875

2,168
465
310
1,166
6,423
-949

19
20
21
22
23
24
25
26
27
28

31
32
33
34
35
36

Veterans benefits and services.................
Administration of justice..........................
General government.................................
General-purpose fiscal assistance..............
Interest7 ..................................................
Undistributed offsetting receipts7 8 ..........

1. Effective June 1978, earned income credit payments in excess of an individual’s
tax liability, formerly treated as income tax refunds, are classified as outlays ret­
roactive to January 1976.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Supplementary medical insurance premiums, federal employee retirement
contributions, and Civil Service retirement and disability fund.
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous re­
ceipts.
o. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was re­




classified from an off-budget agency to an on-budget agency in the Departm ent o f
Labor.

7. Effective September 1976, “Interest” and “Undistributed offsetting receipts”
reflect the accounting conversion from an accrual basis to a cash basis for the
interest on special issues for U.S. government accounts.
8. Consists of interest received by trust funds, rents and royalties on the Outer
Continental Shelf, and U.S. government contributions for employee retirement.
S ource . “Monthly Treasury Statement of Receipts and Outlays of the
Government” and the Budget of the U.S. Government, Fiscal Year 1981.

U .S.

A 30
1 .4 0

D om estic Financial Statistics □ June 1981
F E D E R A L D E B T S U B J E C T T O S T A T U T O R Y L IM IT A T IO N

Billions of dollars
1979

1980

1981

Item
Mar. 31

June 30

Sept. 30

D ec. 31.

Mar. 31

June 30

Sept. 30

D ec. 31

Mar. 31

1 Federal debt outstanding..............................................

804.6

812.2

833.8

852.2

870.4

884.4

914.3

936.7

970.9

2 Public debt secu rities...................................................................
3 Held by public............................................................................
4 Held by agencies.......................................................................

796.8
630.5
166.3

804.9
626.4
178.5

826.5
638.8
187.7

845.1
658.0
187.1

863.5
677.1
186.3

877.6
682.7
194.9

907.7
710.0
197.7

930.2
737.7
192.5

964.5
773.7
190.9

5 Agency s e cu ritie s.........................................................................
6 Held by public...........................................................................
7 Held by agencies.......................................................................

7.8
6.3
1.5

7.3
5.9
1.5

7.2
5.8
1.5

7.1
5.6
1.5

7.0
5.5
1.5

6.8
5.3
1.5

6.6
5.1
1.5

6.5
5.0
1.5

6.4
4.9
1.5

8 Debt subject to statutory limit.......................................

797.9

806.0

827.6

846.2

864.5

878.7

908.7

931.2

965.5

9 Public debt secu rities...................................................................
10 Other debt1 ....................................................................................

796.2
1.7

804.3
1.7

825.9
1.7

844.5
1.7

862.8
1.7

877.0
1.7

907.1
1.6

929.6
1.6

963.9
1.6

11 M emo : Statutory debt limit........................................................

798.0

830.0

830.0

879.0

879.0

925.0

925.0

935.1

985.0

1. Includes guaranteed debt of government agencies, specified participation certificates, notes to international lending organizations, and District of Columbia
stadium bonds.

1 .4 1

G R O S S P U B L I C D E B T O F U .S . T R E A S U R Y

Note. Data from Treasury Bulletin (U.S. Treasury Department),

T y p e s a n d O w n e r s h ip

Billions of dollars, end of period
1981
Type and holder

1977

1978

1979

1980
Jan.

Feb.

Mar.

Apr.

May

718.9

789.2

845.1

930.2

934.1

950.5

964.5

964.0

782.4
487.5
161.7
265.8
60.0
294.8
2.2
24.3
29.6
28.0
1.6
80.9
157.5

844.0
530.7
172.6
283.4
74.7
313.2
2.2
24.6
28.8
23.6
5.3
79.9
177.5

928.9
623.2
216.1
321.6
85.4
305.7

929.8
628.5
220.4
321.2
86.9
301.3

946.5
642.9
229.0
324.5
89.4
303.5

963.2
661.1
235.3
336.5
89.3
302.1

962.8
657.9
225.8
341.1
91.0
304.9

964.8
656.2
224.5
338.4
93.3
308.6

23.8
24.0
17.6
6.4
72.5
185.1

23.7
23.8
17.4
6.4
71.4
182.2

23.6
24.0
17.5
6.4
70.7
185.0

23.5
24.2
17.7
6.4
70.3
183.8

23.4
24.4
18.0
6.4
69.8
187.0

23.2
24.8
18.4
6.4
69.5

Government account series4 .................................................

715.2
459.9
161.1
251.8
47.0
255.3
2.2
13.9
22.2
21.0
1.2
77.0
139.8

15 Non-interest-bearing d e b t ..........................................................

3.7

6.8

1.3

4.2

4.0

1.3

1.2

3.7

By holder5
U.S. government agencies and trust funds...........................
Federal Reserve B a n k s ..............................................................
Private in v esto rs............................................................................
Commercial b a n k s .......................................................................
Mutual savings b ank s...................................................................
Insurance co m p a n ie s...................................................................
Other com panies............................................................................
State and local governm ents.....................................................

154.8
102.8
461.3
101.4
5.9
15.1
22.7
55.2

170.0
109.6
508.6
93.1
5.0
14.9
21.2
64.4

187.1
117.5
540.5
91.5
4.7
14.8
24.9'
67.4

192.5
121.3
616.4
104.7
5.8
15.2
24.6
74.7

189.5
116.7
627.4
108.1
5.8
15.3
22.8
73.0

192.0
118.4
639.6
107.4
5.8
15.0
22.4
76.0

190.9
119.0
654.6
108.5
6.0
14.8
21.5
77.8

n. a.

n.a.

76.7
28.6
109.6
46.1

80.7
30.3
137.8
58.2

79.9
36.2
123.8
97.4

72.2
56.7
134.3
127.9

71.4
62.8
133.9
134.3

70.7
65.5
136.7
140.0

70.4
68.2
142.7
144.7

1 Total gross public debt..................................................
2
3
4
5
6
7
8
9
10
11
12
13
14

16
17
18
19
20
21
22
23

By type
Interest-bearing d e b t ...................................................................
Marketable.......................................................................................
B ills ...............................................................................................
N o tes.............................................................................................
B o n d s ...........................................................................................
Nonmarketable1 ...........................................................................
Convertible bonds2 ...................................................................
State and local government s e r ie s ......................................
Foreign issues3............................................................................
G overnm ent............................................................................
P u b lic .......................................................................................

Savings bonds and n o tes..................................................

1.2

968.5

Individuals

24 Savings b o n d s ...........................................................................
25
Other securities.........................................................................
26 Foreign and international6..........................................................
27 Other miscellaneous investors7.................................................

1. Includes (not shown separately): Securities issued to the Rural Electrification
Administration, depository bonds, retirement plan bonds, and individual retire­
ment bonds.
2. These nonmarketable bonds, also known as Investment Series B Bonds, may
be exchanged (or converted) at the owner’s option for 1V2 percent, 5-year mar­
ketable Treasury notes. Convertible bonds that have been so exchanged are re­
moved from this category and recorded in the notes category (line 5).
3. Nonmarketable dollar-denominated and foreign currency-denominated series
held by foreigners.
4. Held almost entirely by U .S . government agencies and trust funds.
5. Data for Federal Reserve Banks and U .S . government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.




6. Consists of investments of foreign balances and international accounts in the
United States. Beginning with July 1974, the figures exclude non-interest-bearing
notes issued to the International Monetary Fund.
7. Includes savings and loan associations, nonprofit institutions, corporate pen­
sion trust funds, dealers and brokers, certain government deposit accounts, and
government sponsored agencies.

Note. Gross public debt excludes guaranteed agency securities and, beginning
in July 1974, includes Federal Financing Bank security issues.
Data by type of security from M onthly Statement o f the Public D ebt o f the United
States (U .S. Treasury Department); data by holder from Treasury Bulletin.

Federal Finance
1.42 U.S. GOVERNMENT MARKETABLE SECURITIES

A31

Ownership, by maturity

P ar v a lu e ; m illio n s o f d o lla r s , e n d o f p e r io d

1981
Type of holder

1979

1981
1979

1980
Feb.

1980

Mar.

Feb.

All maturities

Mar.

1 to 5 years

1 All holders................................................................................

530,731

623,186

642,905

661,142

164,198

197,409

196,029

203,927

2 U.S. government agencies and trust funds..................................
3 Federal Reserve Banks.............................................................

11,047
117,458

9,564
121,328

9,293
118,435

9,304
119,039

2,555
8,469

1,990
35,835

1,360
34,492

1,363
35,323

4 Private investors........................................................................
5 Commercial banks.................................................................
6 Mutual savings banks.............................................................
7 Insurance companies.............................................................
8 Nonfinancial corporations.......................................................
9 Savings and loan associations.................................................
10 State and local governments...................................................
11 All others..............................................................................

402,226
69,076
3,204
11,496
8,433
3,209
15,735
291,072

492,294
77,868
3,917
11,930
7,758
4,225
21,058
365,539

515,178
79,931
3,930
11,838
7,600
4,103
21,646
386,130

532,800
80,710
4,098
11,698
7,203
4,163
22,317
402,610

133,173
38,346
1,668
4,518
2,844
1,763
3,487
80,546

159,585
44,482
1,925
4,504
2,203
2,289
4,595
99,577

160,177
42,253
1,853
4,148
1,841
2,496
4,711
102,875

167,241
41,573
1,950
4,171
1,734
2,524
4,818
110,470

Total, within 1 year

5 to 10 years

12 All holders................................................................................

255,252

297,385

311,965

318,907

50,440

56,037

58,556

61,995

13 U.S. government agencies and trust funds..................................
14 Federal Reserve Banks..............................................................

1,629
63,219

830
56,858

1,188
54,785

1,189
54,525

871
12,977

1,404
13,458

1,404
13,770

1,411
13,797

15 Private investors........................................................................
16 Commercial banks.................................................................
17 Mutual savings banks..............................................................
18 Insurance companies..............................................................
19 Nonfinancial corporations.......................................................
20 Savings and loan associations.................................................
21 State and local governments...................................................
22 All others..............................................................................

190,403
20,171
836
2,016
4,933
1,301
5,607
155,539

239,697
25,197
1,246
1,940
4,281
1,646
7,750
197,636

255,992
28,949
1,289
2,250
4,337
1,453
7,974
209,740

263,193
30,106
1,317
2,152
3,774
1,465
8,183
216,196

36,592
8,086
459
2,815
308
69
1,540
23,314

41,175
5,793
455
3,037
357
216
2,030
29,287

43,382
6,054
481
3,000
393
88
2,092
31,275

46,786
6,424
511
3,146
461
111
2,243
33,891

Bills, within 1 year

10 to 20 years

23 All holders................................................................................

172,644

216,104

228,972

235,315

27,588

36,854

38,278

38,238

24 U.S. government agencies and trust funds..................................
25 Federal Reserve Banks.............................................................

0
45,337

1
43,971

1
42,781

1
42,632

4,520
3,272

3,686
5,919

3,686
5,903

3,685
5,891

26 Private investors........................................................................
27 Commercial banks.................................................................
28 Mutual savings banks..............................................................
29 Insurance companies.............................................................
30 Nonfinancial corporations.......................................................
31 Savings and loan associations.................................................
32 State and local governments...................................................
33 All others...............................................................................

127,306
5,938
262
473
2,793
219
3,100
114,522

172,132
9,856
394
672
2,363
818
5,413
152,616

186,190
12,803
410
854
2,212
510
5,154
164,246

192,681
12,464
425
812
1,879
512
5,701
170,888

19,796
993
127
1,305
218
58
1,762
15,332

27,250
1,071
181
1,718
431
52
3,597
20,200

28,690
1,174
184
1,664
436
44
3,822
21,365

28,662
1,166
186
1,519
417
39
3,923
21,413

Other, within 1 year

Over 20 years

34 Ail holders................................................................................

82,608

81,281

82,993

83,592

33,254

35,500

35 U.S. government agencies and trust funds..................................
36 Federal Reserve Banks.............................................................

1,629
17,882

829
12,888

1,187
12,004

1,188
11,892

1,472
9,520

1,656
9,258

37 Private investors........................................................................
38 Commercial banks.................................................................
39 Mutual savings banks..............................................................
40 Insurance companies.............................................................
41 Nonfinancial corporations.......................................................
42 Savings and loan associations.................................................
43 State and local governments...................................................
44 All others...............................................................................

63,097
14,233
574
1,543
2,140
1,081
2,508
41,017

67,565
15,341
852
1,268
1,918
828
2,337
45,020

69,802
16,146
879
1,396
2,124
943
2,820
45,493

70,512
17,641
892
1,340
1,895
953
2,481
45,308

22,262
1,470
113
842
130
19
3,339
16,340

24,587
1,325
110
730
476
21
3,086
18,838

Note. Direct public issues only. Based on Treasury Survey of Ownership from
Treasury Bulletin (U.S. Treasury Department).

Data complete for U.S. government agencies and trust funds and Federal Reserve
Banks, but data for other groups include only holdings of those institutions that
report. The following figures show, for each category, the number and proportion
reporting as of Mar. 31, 1981: (1) 5,343 commercial banks,




38,076
1,656
9,484*
26,936
1,501
123
776
593
22
3,047
20,875

38,076
1,656
9,503
26,918
1,441
135
710
816
25
3,150
20,640

458 mutual savings banks, and 723 insurance companies, each about 80 percent;
(2) 411 nonfinancial corporations and 476 savings and loan associations, each about
50 percent; and (3) 488 state and local governments, about 40 percent.
“All others,” a residual, includes holdings of all those not reporting in the
Treasury Survey, including investor groups not listed separately.
t January data revised to 9.111.

A32
1.43

D om estic Financial Statistics □ June 1981
U.S. GOVERNMENT SECURITIES DEALERS
Par value; averages of daily figures, in millions of dollars

Transactions

1981
Item

1978

1979

Feb.P
Immediate delivery1
1 U.S. government securities---By maturity

2
3
4
5
6

Bills....................................
Other within 1 year............
1-5 years.............................
5-10 years...........................
Over 10 years......................

1981, week ending Wednesday

1980

Mar.P

Apr.P

Apr. 22

Apr. 29

May 6

May 13

May 20

10,285

13,183

23,487

23,848

21,360

20,421

20,436

20,499

21,306

20,848

6,173
392
1,889
965
867

7,915
454
2,417
1,121
1,276

14,589
444
3,904
2,036
2,514

14,114
388
4,182
2,758
2,408

13,134
374
3,390
2,135
2,328

13,357
363
2,793
1,7%
2,112

12,324
526
4,012
1,498
2,076

11,994
402
3,822
2,004
2,278

11,431
510
3,550
1,916
3,900

11,679
593
3,867
1,658
3,052

May 27

12,745
355
4,586
1,619
2,144

By type of customer

7

U.S. government securities
dealers.............................
U.S. government securities
brokers...........................
All others2 .........................

1,135

1,448

1,520

1,390

1,070

1,030

1,096

1,105

1,061

1,006

1,216

3,838
5,312

5,170
6,564

10,987
10,979

11,681
10,776

10,565
9,725

10,130
9,260

9,358
9,981

10,282
9,113

9,885
10,360

10,075
9,767

9,771
10,462

10 Federal agency securities........

1,894

2,723

3,201

3,311

2,864

2,783

3,054

2,548

1,599

3,368

2,837

4,281
1,880
5,553

3,717
1,751
5,073
n.a.

3,518
1,627
5,302

3,335
1,546
5,694

2,921
1,560
5,033
n.a.

3,375
1,452
6,268
n.a.

2,168
1,169
5,582

2,823
1,104
6,193
n.a.

3,079
1,547
5,877
n.a.

8
9

11 Certificates of deposit............
12 Bankers acceptances...............
13 Commercial paper...................
Futures and forward positions3-

1. Before 1981, data for immediate transactions include forward transactions.
2. Includes, among others, all other dealers and brokers in commodities and
securities, nondealer departments of commercial banks, foreign banking agencies,
and the Federal Reserve System.
3. Futures contracts are standardized agreements arranged on an organized ex­
change in which parties commit to purchase or sell securities for delivery at a future
date.

1 .4 4

U .S . G O V E R N M E N T S E C U R IT IE S D E A L E R S

4. Forward transactions are agreements arranged in the over-the-counter market
in which securities are purchased (sold) for delivery after 5 business days from the
date of the transaction for government securities (Treasury bills, notes, and bonds)
or after 30 days for mortgage-backed agency issues.
N o te s . Averages for transactions are based on number of trading days in the
period.
Transactions are market purchases and sales of U.S. government securities deal­
ers reporting to the Federal Reserve Bank of New York. The figures exclude
allotments of, and exchanges for, new U.S. government securities, redemptions of
called or matured securities, purchases or sales of securities under repurchase
agreement, reverse repurchase (resale), or similar contracts.

P o s it io n s a n d S o u r c e s o f F in a n c in g

A v e r a g e s o f d a ily f ig u r e s , in m illio n s o f d o lla r s

1981
Item

1978

1979

1981, week ending Wednesday

1980
Feb.P

Mar.P

Apr.P

Apr. 1

Apr. 8

Apr. 15

Apr. 22

Apr. 29

May 6

Positions
Net immediate1
1 U.S. government securities.........

2,656

3,223

14,891

17,059

11,570

17,809

16,350

12,043

10,653

7,329

4,651

2
3
4
5
6

Bills.......................................
Other within 1 year...............
1-5 years................................
5-10 years...............................
Over 10 years.........................

2.452
260
-92
40
-4

3.813
-325
-455
160
30

13.105
-322
-369
246
2,231

13.608
-279
817
650
2,263

8,471
142
399
530
2,027

13,179
-121
1,918
315
2,518

12,238
80
1,114
757
2,161

9,276
71
195
564
1,937

8,267
218
-266
465
1,969

4,361
232
332
405
1,998

1,944
182
428
246
1,850

7 Federal agency securities............

606

1,471

1,364

1,429

1,710

1,695

1,846

1,826

1,599

1,569

1,716

8 Certificate of deposit.................
9 Bankers acceptances...................
10 Commercial paper......................
Futures and forward positions ...

2,775
n.a.
n.a.
n.a.

2,794
n.a.
n.a.
n.a.

2,151
1,363
2,374
n.a.

2,728
1,594
2,590
n.a.

2,117
1,705
2,721
n.a.

3,132
1,995
2,866
n.a.

2,316
1,901
2,794
n.a.

1,889
1,591
2,564
n.a.

2,168
1,675
2,8%
n.a.

1,924
1,614
2,639
n.a.

2,310
1,686
2,503
n.a.

n.a.

Financing2
Reverse repurchase agreements3 .
Overnight and continuing.......
Term agreements...................
Repurchase agreements4 ............
13 Overnight and continuing.......
14 Term agreements...................
11
12

4
T
1
n.a.
1
t

4
T

1
n.a.
1

\

1I
n.a.

1

8,080r
24,917r

8,505
24,552

9,658
26,033

8,710
24,504

9,121
24,962

8,972
25,742

10,135
25,928

10,393
27,385

10,693
28,370

28,558r
26,256r

32,899
24,102

31,958
24,792

34,753
23,583

33,823
23,953

31,518
24,343

32,640
25,136

29,842
25,798

29,223
25,556

1. Immediate positions are net amounts (in terms of par values) of securities
owned by nonbank dealer firms and dealer departments of commercial banks on
a commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase (RPs). The maturities of some repur­
chase agreements are sufficiently long, however, to suggest that the secunties
involved are not available for tracling purposes. Securities owned, and hence dealer
positions, do not include securities to resell (reverse RPs). Before 1981, data for
immediate positions include forward positions.
2. Figures cover financing involving U.S. government and federal agency secu­
rities, negotiable CDs, bankers acceptances, and commercial paper.




3. Includes all reverse repurchase agreements, including those that have been
arranged to make delivery on short sales and those for which the securities obtained
have been used as collateral on borrowings, i.e., matched agreements.
4. Includes both repurchase agreements undertaken to finance positions and
“matched book” repurchase agreements.
N o te . Data for positions are averages of daily figures, in terms of par value,
based on the number of trading days in the period. Positions are shown net and
are on a commitment basis. Data for financing are based on Wednesday figures,
in terms of actual money borrowed or lent.

Federal Finance
1.45

A33

FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt outstanding
Millions of dollars, end of period
1980
Agency

1976

1977

1981

1978
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

1 Federal and federally sponsored agencies1 .....................

103,848

112,472

137,063

188,076

188,743

193,229

195,056

194,926

198,828

2 Federal agencies..........................................................
3 Defense Department2................................................
4 Export-Import Bank3-4..............................................
5 Federal Housing Administration5 .............................
6 Government National Mortgage Association
participation certificates6....................................
7 Postal Service7..........................................................
8 Tennessee Valley Authority......................................
9 United States Railway Association7 ..........................

22,419
1,113
8,574
575

22,760
983
8,671
581

23,488
968
8,711
588

27,797
636
10,715
490

27,941
631
10,696
486

28,606
610
11,250
477

28,769
600
11,239
476

28,596
591
11,201
468

29,397
576
11,881
464

4,120
2,998
4,935
104

3,743
2,431
6,015
336

3,141
2,364
7,460
356

2,842
1,770
10,835
509

2,842
1,770
11,010
506

2,817
1,770
11,190
492

2,817
1,770
11,375
492

2,817
1,770
11,550
199

2,817
1,770
11,680
209

10 Federally sponsored agencies1 ......................................
11 Federal Home Loan Banks.......................................
12 Federal Home Loan Mortgage Corporation..............
13 Federal National Mortgage Association.....................
14 Federal Land Banks..................................................
15 Federal Intermediate Credit Banks...........................
16 Banks for Cooperatives.............................................
17 Farm Credit Banks1..................................................
18 Student Loan Marketing Association8 ......................
19 Other........................................................................

81,429
16,811
1,690
30,565
17,127
10,494
4,330
410
2

89,712
18,345
1,686
31,890
19,118
11,174
4,434
2,548
515
2

113,575
27,563
2,262
41,080
20,360
11,469
4,843
5,081
915
2

160,279
38,819
2,537
53,889
12,365
1,821
584
47,888
2,375
1

160,802
39,380
2,537
53,643
12,365
1,821
584
48,021
2,450
1

164,623
41,258
2,536
55,185
12,365
1,821
584
48,153
2,720
1

166,287
41,819
2,518
54,605
11,507
1,388
584
50,645
3,220
1

166,330
42,275
2,514
54,110
11,507
1,388
584
50,675
3,275
2

169,431
43,791
2,409
54,666
11,507
1,388
584
51,689
3,395
2

28,711

38,580

51,298

83,903

85,440

87,460

88,420

89,444

94,101

5,208
2,748
410
3,110
104

5,834
2,181
515
4,190
336

6,898
2,114
915
5,635
356

10,067
1,520
2,375
9,110
509

10,067
1,520
2,450
9,285
506

10,654
1,520
2,720
9,465
492

10,654
1,520
3,220
9,650
492

10,654
1,520
3,275
9,825
199

11,346
1,520
3,395
9,955
209

10,750
1,415
4,966

16,095
2,647
6,782

23,825
4,604
6,951

38,466
8,646
13,210

39,431
8,760
13,421

39,431
9,196
13,982

39,271
9,471
14,142

39,851
10,212
13,908

41,791
10,443
15,442

M emo :

20 Federal Financing Bank debt7’9 ....................................
21
22
23
24
25

Lending to federal and federally sponsored agencies

Export-Import Bank4....................................................
Postal Service7..............................................................
Student Loan Marketing Association8 ..........................
Tennessee Valley Authority.........................................
United States Railway Association7 .............................
Other Lending10

26 Farmers Home Administration......................................
27 Rural Electrification Administration.............................
28 Other...........................................................................

1. In September 1977 the Farm Credit Banks issued their first consolidated bonds,
and in January 1979 they began issuing these bonds on a regular basis to replace
the financing activities of the Federal Land Banks, the Federal Intermediate Credit
Banks, and the Banks for Cooperatives. Line 17 represents those consolidated
bonds outstanding, as well as any discount notes that have been issued. Lines 1
and 10 reflect the addition of this item.
2. Consists of mortgages assumed by the Defense Department between 1957 and
1963 under family housing and homeowners assistance programs.
3. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
4. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
5. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the se­
curities market.
6. Certificates of participation issued prior to fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Admin­
istration; Department of Health, Education, and Welfare; Department




of Housing and Urban Development; Small Business Administration; and the
Veterans Administration.
7. Off-budget.
8. Unlike other federally sponsored agencies, the Student Loan Marketing As­
sociation may borrow from the Federal Financing Bank (FFB) since its obligations
are guaranteed by the Department of Health, Education, and Welfare.
9. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB incurs
debt solely for the purpose of lending to other agencies, its debt is not included in
the main portion of the table in order to avoid double counting.
10. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any partic­
ular agency being generally small. The Farmers Home Administration item consists
exclusively of agency assets, while the Rural Electrification Administration entry
contains both agency assets and guaranteed loans.

A 34

Domestic Financial Statistics □ June 1981

1.46 NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
1980

Type of issue or issuer.

1978

1979

Nov.

Oct.
1 All issues, new and refunding!........................................................
2
3
4
5

Type of issue
General obligation............................................................................
Revenue .............................................................................................
Housing Assistance Administration2 ..............................................
U.S. government lo a n s ....................................................................

1981

1980
Dec.

J a n .'

Feb.

Mar.

48,607

43,490

48,462

4,496

2,928

3,859

2,672

2,876

3,790

17,854
30,658

12,109
31,256

14,100
34,267

1,056
3,419

734
2,183

558
3,297

725
1,935

872
2,001

1,230
2,549

95

125

95

21

11

4

12

3

11

Type of issuer
6 State ...................................................................................................
7 Special district and statutory authority..........................................
8 Municipalities, counties, townships, school districts....................

6,632
24,156
17,718

4,314
23,434
15,617

5,304
26,972
16,090

195
2,863
1,416

323
1,638
955

127
2,332
1,395

478
1,421
761

530
1,411
930

349
1,887
1,545

9 Issues for new capital, total..............................................................

37,629

41,505

46,736

4,472

2,715

3,760

2,658

2,804

3,766

Use of proceeds
Education...........................................................................................
Transportation...................................................................................
Utilities and conservation................................................................
Social welfare.....................................................................................
Industrial a i d .....................................................................................
Other purposes..................................................................................

5,003
3,460
9,026
10,494
3,526
6,120

5,130
2,441
8,594
15,968
3,836
5,536

4,572
2,621
8,149
19,958
3,974
7,462

470
282
903
1,403
595
819

211
256
369
1,076
412
391

198
53
408
2,465
295
341

334
147
630
772
375
400

294
322
447
859
274
608

510
237
783
954
442
840

10
11
12
13
14
15

1. Par amounts of long-term issues based on date of sale.
2. Only bonds sold pursuant to the 1949 Housing Act, which are secured by
contract requiring the Housing Assistance Administration to make annual contri­
butions to tne local authority.

1.47

Source . Public Securities Association.

NEW SECURITY ISSUES of Corporations
Millions of dollars
Type of issue or issuer.
or use

1980
1978

1979

1981

1980r
Sept.

O ct.'

Nov.

D ec.'

Jan.

Feb.

Mar.

1 All issues1 .......................................................................

47,230

51,533

73,688

5,025

5,819

3,936'

5,933

5,581'

4,157

6,667

2 Bonds...............................................................................

36,872

40,208

53,199

2,916

3,284

2,164'

3,044

3,386'

2,834

4,519

Type of offering
3 P u b lic.............................................................................
4 Private placem ent..........................................................

19,815
17,057

25,814
14,394

41.587
11.612

2,421
495

2,756
528

1,405
759'

1,719
1,325

2,928
458'

2,408
426

4,022
497

Industry group
Manufacturing................................................................
Commercial and miscellaneous....................................
Transportation................................................................
Public utility...................................................................
Communication..............................................................
Real estate and financial..............................................

9,572
5,246
2,007
7,092
3,373
9,586

9,678
3,948
3,119
8,153
4,219
11,094

15.409
6.688
3.329
9.556
6.683
11.534

553
390
409
569
517
477

623
320
240
769
763
569

132'
442'
147'
565
147'
732'

609
509
165
314
653
793

1,635
231
353
800
62 '
306

1,140
356
45
593
272
430

1,204
212
172
594
958
1,380

11 Stocks .............................................................................

10,358

11,325

20,490

2,109

2,535

1,772

2,889

2,195'

1,323

2,148

Type
12 Preferred..........................................................................
13 Common.........................................................................

2,832
7,526

3,574
7,751

3.632
16.858

392
1,717

543
1,992

256
1,516

241
2,648

364'
1,831

149
1,174

298
1,850

Industry group
M anufacturing................................................................
Commercial and miscellaneous....................................
Transportation................................................................
Public utility....................................................................
Communication..............................................................
Real estate and financial..............................................

1,241
1,816
263
5,140
264
1,631

1,679
2,623
255
5,171
303
12,931

4.839
5.245
549
6.230
567
3.059

502
569
54
633
6
345

851
400
117
526
67
574

418
509
53
227
113
452

844
908
95
669
65
308

609'
603
124
562
14
284

204
589
81
260
31
159

735
816
17
414

5
6
7
8
9
10

14
15
16
17
18
19

1. Figures, which represent gross proceeds of issues maturing in more than one
year. sold for cash in the United States, are principal amount or number of units
multiplied by offering price. Excludes offerings of less than $100,000, secondary
offerings, undefined or exempted issues as defined in the Securities Act of




167

1933, employee stock plans, investment companies other than closed-end, intra­
corporate transactions, and sales to foreigners,
Source . Securities and Exchange Commission.

Corporate Finance
1.48 OPEN-END INVESTMENT COMPANIES

A35

Net Sales and Asset Position

Millions of dollars
1980
Item

1979

1981

1980
Sept.

Nov.

Oct.

Dec.

Jan.

Feb.

Mar.

Apr.

I nvestment C ompanies1
1 Sales of own shares2......................................................
2 Redemptions of own shares3........................................
3 Net sales..........................................................................

7,495
8,393
-8 9 8

15,266
12,012
3,254

1,405
1,228
177

1,523
1,362
161

1,289
1,086
203

1,242
1,720
-4 7 8

1,676
1,193
483

1,347
960
387

1,696
1,112
584

2,000
1,594
406

4 Assets4 ............................................................................
Cash position5 ............................................................
5
6
O ther............................................................................

49,277
4,983
44,294

58,400
5,321
53,079

55,779
5,481
50,298

56,156
5,460
50,696

60,329
5,467
54,862

58,400
5,321
53,079

56,160
4,636
51,524

56,452
4,882
51,570

59,146
4,971
54,175

58,531
5,068
53,463

5.
Also includes all U.S. government securities and other short-term debt se­
curities.

1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment
of capital gains distributions and share issue of conversions from one fund to another
in the same group.
3. Excludes share redemption resulting from conversions from one fund to an­
other in the same group.
4. Market value at end of period, less current liabilities.

N ote . Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the Se­
curities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.

1.49 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1979
Account

1978

1979

1980

1981

1980
Q3

Q4

Ql

Q2

Q3

Q4

Ql

1 Profits before tax............................................................

223.3

255.4

245.5

262.0

255.4

277.1

217.9

237.6

249.2

258.7

2
3
4
5
6
7

83.0
140.3
44.6
95.7
122.9
218.6

87.6
167.7
50.2
117.6
139.5
257.1

82.3
163.1
56.0
107.1
158.3
265.4

86.4
173.6
50.2
123.4
142.6
266.0

87.2
168.2
51.6
116.6
146.4
263.0

94.2
182.9
53.9
129.0
151.7
280.7

71.5
146.4
55.7
90.7
155.4
246.1

78.5
159.1
56.7
102.4
160.5
267.9

85.1
164.1
57.7
106.4
165.4
271.8

90.4
168.3
59.6
108.7
170.6
279.3

Profits tax liability..........................................................
Profits after ta x ..............................................................
Dividends....................................................................
Undistributed p ro fits................................................
Capital consumption allowances..................................
Net cash flow..................................................................

S ource. Survey of Current Business (U.S. Department of Commerce).




A 36

Domestic Financial Statistics □ June 1981

1.50 NONFINANCIAL CORPORATIONS

Current Assets and Liabilities

Billions of dollars, except for ratio
1979
Account

1975

1976

1977

1980

1978
Q3

Q4

Ql

Q2

Q3

Q4

1 Current assets................................................................

759.0

826.8

902.1

1,030.0

1,169.5

1,200.9

1,235.2

1,233.8

1,255.8

1,279.9

2
3
4
5
6

Cash..................................................................................
U.S. government securities..........................................
Notes and accounts receivable....................................
Inventories......................................................................
O ther................................................................................

82.1
19.0
272.1
315.9
69.9

88.2
23.4
292.8
342.4
80.1

95.8
17.6
324.7
374.8
89.2

104.5
16.3
383.8
426.9
98.5

103.7
15.8
453.0
489.4
107.7

116.1
15.6
456.8
501.7
110.8

110.2
15.1
471.2
519.5
119.3

111.5
13.8
464.2
525.7
118.7

113.2
16.3
479.2
525.1
122.0

120.8
17.0
491.1
525.1
125.9

7 Current liabilities..........................................................

451.6

494.7

549.4

665.5

777.8

809.1

838.3

828.1

852.1

877.2

8 Notes and accounts p ay a b le........................................
9 O ther................................................................................

264.2
187.4

281.9
212.8

313.2
236.2

373.7
291.7

438.8
339.0

456.3
352.8

467.9
370.4

463.1
364.9

477.3
374.8

498.2
379.0

10 Net working capital........................................................

307.4

332.2

352.7

364.6

391.7

391.8

397.0

405.7

403.7

402.7

11 M emo : Current ratio 1..................................................

1.681

1.672

1.642

1.548

1.504

1.484

1.474

1.490

1.474

1.459

1. Ratio of total current assets to total current liabilities.

All data in this table reflect the most current benchmarks. Complete data are
available upon request from the Flow of Funds Section, Division of Research and
Statistics.

N ote . For a description of this series, see “Working Capital of Nonfinancial
Corporations” in the July 1978 B ulletin , pp. 533-37.

Source . Federal Trade Commission.

1.51

TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1980
Industry

1 Total nonfarm business................................................
2
3
4
5
6
7
8
9
10
11

Manufacturing
Durable goods industries..............................................
Nondurable goods industries........................................
Nonmanufacturing
Mining..............................................................................
Transportation
R ailro ad ......................................................................
A ir................................................................................
O ther............................................................................
Public utilities
Electric........................................................................
Gas and o th e r ............................................................
Trade and services........................................................
Communication and other2..........................................

1979

1980

Q2

Q3

04

Ql

Q 21

Q 31

Q 41

270.46

295.63

320.51

294.36

296.23

299.58

312.24

311.87

322.88

333.09

51.07
47.61

58.91
56.90

63.99
63.89

59.38
56.32

58.19
58.21

59.77
58.86

61.24
63.27

60.28
61.71

64.90
65.56

68.65
64.80

11.38

13.51

16.91

12.81

13.86

15.28

16.20

15.93

17.51

17.87

4.03
4.01
4.31

4.25
4.01
3.82

4.39
3.65
4.10

4.06
4.27
3.76

3.98
4.06
4.18

4.54
3.77
3.39

4.23
3.85
3.66

4.10
3.17
4.21

4.41
3.09
4.07

4.81
4.55
4.35

27.65
6.31
79.26
34.83

28.12
7.32
81.79
36.99

28.93
8.33
85.22
41.09

27.91
7.12
81.07
37.66

28.14
7.44
81.19
36.97

27.54
7.41
82.91
36.11

27.69
8.36
83.43
40.32

28.98
8.40
84.55
40.54

30.26
7.98
84.12
40.97

28.73
8.57
88.33
42.43

1. Anticipated by business.
2. “O ther” consists of construction; social services and membership organiza­
tions; and forestry, fisheries, and agricultural services.




1981

198U

Source. Survey of Current Business (U.S. Dept, of Commerce).

Corporate Finance

A 37

1.52 DOMESTIC FINANCE COMPANIES Assets and Liabilities
B illions o f d o lla rs , e n d o f p e rio d
1980
Account

1976

1975

1977

1978

1981

1979
02

01

03

04

01

A ssets
A ccounts receivable, gross
Consum er................................................................................
B u sin e ss..................................................................................
T o t a l....................................................................................
L ess: Reserves for unearned income and lo sse s. . . .
Accounts receivable, n e t ...................................................
Cash and bank d ep osits.....................................................
S ecu rities................................................................................
All oth er..................................................................................

36.0
39.3
75.3
9.4
65.9
2.9
1.0
11.8

38.6
44.7
83.4
10.5
72.9
2.6
1.1
12.6

44.0
55.2
99.2
12.7
86.5
2.6
.9
14.3

52.6
63.3
116.0
15.6
100.4
3.5
1.3
17.3

65.7
70.3
136.0
20.0
116.0

9 Total assets......................................................................

81.6

89.2

104.3

122.4

10 Bank lo a n s..............................................................................
11 Commercial paper.................................................................
Debt
12
Short-term, n .e.c...............................................................
13
Long-term, n .e .c ...............................................................
14
O ther....................................................................................

8.0
22.2

6.3
23.7

5.9
29.6

4.5
27.6
6.8

5.4
32.3
8.1

15 Capital, surplus, and undivided profits........................

12.5

16 Total liabilities and capital............................................

81.6

1
2
3
4
5
6
7
8

67.7
70.6
138.4
20.4
118.0

70.2
70.3
140.4
21.4
119.0

71.7
66.9
138.6
22.3
116.3

73.6
72.3
145.9
23.3
122.6

76.1
72.7
148.7
24.3
124.5

23.7

26.1

28.3

27.5

30.8

140.9

141.7

145.1

144.7

150.1

155.3

6.5
34.5

8.5
43.3

9.7
40.8

10.1
40.7

10.1
40.5

13.2
43.4

13.1
44.2

6.2
36.0
11.5

S.l
43.6
12.6

8.2
46.7
14.2

7.4
48.9
15.7

7.9
50.5
16.0

7.7
52.0
14.6

7.5
52.4
14.3

8.2
51.6
17.3

13.4

15.1

17.2

19.9

19.2

19.9

19.8

19.4

20.9

89.2

104.3

122.4

140.9

141.7

145.1

144.7

150.1

155.3

24.9'

L iabilities

1. Beginning Q l 1979. asset items on lines 6. 7. and 8 are combined.
N ote . Components may not add to totals due to rounding.

1.53

DOMESTIC FINANCE COMPANIES

Business Credit

M illions o f d o lla rs, seaso n ally a d ju ste d ex c ep t as n o te d

Type

Accounts
receivable
outstanding
Mar. 31.

Changes in accounts
receivable

Extensions

Repayments

1981

1981

1981

1981'

Jan.

Feb.

Mar.

Jan.

Feb.

Mar.

Jan.

Feb.

Mar.

1

72,650

702

280

-7 7 3

16,811

18,207

18,096

16,109

17,927

18,869

2 Retail automotive (commercial vehicles)....................................
3 Wholesale automotive....................................................................
4 Retail paper on business, industrial and

11.766
11.019

- 126
-3 1 0

- 160
-494

-2 9 5
- 1.075

921
5.554

885
5.351

749
5.050

1.047
5.864

1.045
5.845

1.044
6.125

farm e q u ip m en t......................................................................

23.657

458

591

556

1.564

1.800

1.788

1.106

1.209

1.232

7.867
18.341

519
161

-2 6 2
605

178
-137

6.362
2.410

7.792
2.379

8.142
2.367

5.843
2.249

8.054
1.774

7.964
2.504

5 Loans on commercial accounts receivable and factored com­

mercial accounts receivable..................................................
6 All other business credit................................................................

1. Not seasonally adjusted.




A 38

Domestic Financial Statistics □ June 1981

1.54 MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1980
Item

1978

1979

1981

1980
Nov.

Oct.

Dec.

Jan.

Feb.

Mar.

Apr.

Terms and yields in primary and secondary markets
P rimary M arkets
Conventional mortgages on new homes
Terms1
Purchase price (thousands of dollars)........................
Amount of loan (thousands of dollars)......................
Loan/price ratio (percent)............................................
Maturity (y e a rs )............................................................
Fees and charges (percent of loan amount)2 ............
Contract rate (percent per an n u m )............................

62.6
45.9
75.3
28.0
1.39
9.30

74.4
53.3
73.9
28.5
1.66
10.48

83.5
59.3
73.3
28.2
2.10
12.25

84.0
61.3
75.0
28.2
2.16
12.20

77.1
56.1
75.2
27.6
2.15
12.62

90.1
63.0
72.9
28.2
2.40
12.80

87.0
63.0
75.6
29.1
2.40
12.80

90.3
65.6
75.6
29.0
2.59
13.02

90.9'
64.5'
73.9'
28.7
2.64
13.48

88.5
64.1
74.7
28.6
2.61
13.62

Yield (percent per annum)
7 FHLBB s e r ie s '..............................................................
8 HUD series4............................................ ........................

9.54
9.68

10.77
11.15

12.65
13.95

12.60
14.10

13.04
14.70

13.28
15.05

13.26
14.95

13.54
15.10

14.02
15.25

14.15
15.75

9.70
8.98

10.87
10.22

13.42
12.55

14.38
12.91

14.47
13.55

14.08
13.62

14.23
13.50

14.79
14.13

15.04
14.22

15.91
15.31

9.77
10.01

11.17
11.77

14.11
14.43

14.94
14.70

15.53
15.30

15.21
15.54

14.87
14.95

15.24
15.05

15.67
15.33

16.54
15.66

57,390

57,434

57,362

57,436

38,972
18,462

38,878
18,484

38,919

1
2
3
4
5
6

Secondary M arkets
9
10
11
12

Yield (percent per annum)
FHA mortgages (HUD series)5 ............ ......................
GNMA securities6..........................................................
FNMA auctions7
Government-underwritten loans...... ........................
Conventional loans....................................................

Activity in secondary markets
F ederal N ational M ortgage A ssociation
Mortgage holdings (end of period)
43,311
21,243
10,544
11,524

51,091
24,489
10,496
16,106

38,9698

56,188
38,040

56,619

FH A -insured..............................................................
V A -guaranteed..........................................................
Conventional..............................................................

38,381

57,327
38,969

18,358

18,148

18,238

18,358

38,955
18,435

Mortgage transactions (during period)
17 Purchases........................................................................
18 S a le s ................................................................................

12,303
9

10,805
0

8,100
0

771
0

579
0

855
0

185
0

161
0

87
0

206
0

Mortgage commitments9
19 Contracted (during period)..........................................
20 Outstanding (end or period)........................................

18,959
9,185

10,179
6,409

8,044
3,278

514
4,399

472
3,963

403
3,278

241
3,063

244
2,683

320
2,173

383
2,031

12,978
6,747.2

8,860
3,921

8,605
4,002

427.8
257.7

252.0
135.6

242.1
110.8

210.7
93.0

155.3
104.7

145.3'
104.7'

139.1
114.5

9,933.0
5,111

4,495
2,344

3,639
1,749

107.6
93.9

81.6
68.8

84.8
54.1

32.0
30.3

108.6'
79.1'

149.2'
97.6'

126.9
92.0

FHA/VA......................................................................
Conventional..............................................................

3,064
1,243
1,165

4,035
1,102
1,957

5,067
1,033
2,830

4,727
1,044
3,629

4,843
1,038
3,715

5,067
1,033
2,830

5,039
1,029
2,825

5,107
1,025
2,883

5,161
1,021
2,931

5,176
1,017
2,952

Mortgage transactions (during period)
28 Purchases........................................................................
29 S a le s ................................................................................

6,525
6,211

5,717
4,544

3,722
2,526

398
187

231
94

285
48

152
168

174
94

148
127

125
97

Mortgage commitments11
30 Contracted (during period)..........................................
31 Outstanding (end oi period)........................................

7,451
1,410

5,542
797

3,859
447

222
726

180
653

126
447

203
487

294
394

768
699

886
678

14
15
16

Auction of 4-month commitments to buy
Government-underwritten loans
O ffered........................................................................
Accepted......................................................................
Conventional loans
23
O ffered........................................................................
24 Accepted......................................................................
21
22

57,327

18,517

Federal H ome L oan M ortgage C orporation
Mortgage holdings (end of period)10
26
27

1. Weighted averages based on sample surveys of mortgages originated by major
institutional lender groups. Compiled by the Federal Home Loan Bank Board in
cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and “points” paid (by the borrower
or the seller) in order to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages,
rounded to the nearest 5 basis points; from Department of Housing and Urban
Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal Housing
Administration-insured first mortgages for immediate delivery in the private sec­
ondary market. Any gaps in data are due to periods of adjustment to changes in
maximum permissible contract rates.
6. Average net yields to investors on Government National Mortgage Associ­
ation guaranteed, mortgage-backed, fully modified pass-through securities,




assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying
the prevailing ceiling rate. Monthly figures are unweighted averages of Monday
quotations for the month.
7. Average gross yields (before deduction of 38 basis points for mortgage serv­
icing) on accepted bids in Federal National Mortgage Association’s auctions of 4month commitments to purchase home mortgages, assuming prepayment in 12
years for 30-year mortgages. No adjustments are made for FNMA commitment
fees or stock related requirements. Monthly figures are unweighted averages for
auctions conducted withm the month.
8. Beginning March 1980, FHA-insured and VA-guaranteed mortgage holdings
in lines 14 and 15 are combined.
9. Includes some multifamily and nonprofit hospital loan commitments in ad­
dition to 1- to 4-family loan commitments accepted in FNMA’s free market auction
system, and through the FNMA-GNMA tandem plans.
10. Includes participation as well as whole loans.
11. Includes conventional and government-underwritten loans.

Real Estate Debt
1.55

A 39

MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
1980
Type of holder, and type of property

1978

1979

1981

1980
Ql

Q2

Q3

Q4

Ql

1 All ho ld e rs..............................................................................

1,169,412

1,326,750

1,451,840

1,357,660

1,380,928

1,414,881

1,451,840

1,473,919'

2 1- to 4-family..........................................................................
3 Multifamily..............................................................................
4 Com m ercial............................................................................
5

765,217
121,138
211,851
71,206

878,931
128,852
236,451
82,516

960,422
136,580
258,338
96,500

897,608
130,363
242,776
86,913

910,286
132,194
247,444
91,004

935,393
134,193
251,651
93,644

960,422
136,580
258,338
96,500

973,601'
139,047'
262,140'
100,115'

6 Major financial institutions..................................................
7 Commercial banks1............................................................
8
1- to 4-family..................................................................
9
Multifamily......................................................................
10
Com m ercial....................................................................
11
F a rm ................................................................................

848,177
214,045
129,167
10,266
66,115
8,497

938,567
245,187
149,460
11,180
75,957
8,590

998,386
264,602
160,746
12,304
82,688
8,864

951,276
250,702
152,553
11,557
77,993
8,599

958,750
253,103
153,753
11,764
79,110
8,476

977,281
258,003
156,737
11,997
80,626
8,643

998,386
264,602
160,746
12,304
82,688
8,864

1,008,265'
268,102'
162,872'
12,467
83,782
8,981

12
13
14
15
16

Mutual savings banks........................................................
1- to 4-family..................................................................
Multifamily......................................................................
Com m ercial....................................................................
F a rm ................................................................................

95,157
62,252
16,529
16,319
57

98,908
64,706
17,340
16,963
59

99,827
65,307
17,180
17,120
60

99,151
64,865
17,223
17,004
59

99,150
64,864
17,223
17,004
59

99,306
64,966
17,249
17,031
60

99,827
65,307
17,340
17,120
60

99,840
65,316
17,342
17,122
60

17
18
19
20

Savings and loan associations..........................................
1- to 4-family...................................................... ...........
Multifamily......................................................................
Com m ercial....................................................................

432,808
356,114
36,053
40,461

475,688
394,345
37,579
43,764

502,812
419,446
38,113
45,253

478,952
398,009
37,215
43,728

481,042
399,746
37,329
43,967

491,895
409,896
37,728
44,271

502,812
419,446
38,113
45,253

507,040
422,964
38,443
45,633

21
22
23
24
25

Life insurance com panies................................................
1- to 4-family..................................................................
Multifamily.................................... ..................................
Comm ercial....................................................................
F a rm ................................................................................

106,167
14,436
19,000
62,232
10,499

118,784
16,193
19,274
71,137
12,180

131,145
17,911
19,614
80,776
12,844

122,471
16,850
19,590
73,618
12,413

125,455
17,796
19,284
75,693
12,682

128,077
17,996
19,357
77,995
12,729

131,145
17,911
19,614
80,776
12,844

133,283
18,203
19,934
82,093
13,053

26 Federal and related agencies................................................
27 Government National Mortgage Association................
28
1- to 4-family..................................................................
29
Multifamily......................................................................

81,739
3,509
877
2,632

97,084
3,852
763
3,089

114,300
4,642
704
3,938

103,921
3,919
749
3,170

108,539
4,466
736
3,730

110,526
4,389
719
3,670

114,300
4,642
704
3,938

116,306'
4,966
730
4,236

30
31
32
33
34

Farmers Home Administration........................................
1- to 4-family..................................................................
Multifamily......................................................................
C om m ercial.............................................. .....................
F a rm ................................................................................

926
288
320
101
217

1,274
417
71
174
612

3,492
916
610
411
1,555

2,845
1,139
408
409
889

3,375
1,383
636
402
954

3,525
978
774
370
1,403

3,492
916
610
411
1,555

2,837'
1,321'
528'
479'
509'

35
36
37

Federal Housing and Veterans Administration............
1- to 4-family..................................................................
Multifamily......................................................................

5,305
1,673
3,632

5,555
1,955
3,600

5,640
2,051
3,589

5,621
2,022
3,599

5,691
2,085
3,606

5,600
1,986
3,614

5,640
2,051
3,589

5,723
2,098
3,625

38
39
40

Federal National Mortgage Association........................
1- to 4-family..................................................................
Multifamily............................................ ......................

43,311
37,579
5,732

51,091
45,488
5,603

57,327
51,775
5,552

53,990
48,394
5,596

55,419
49,837
5,582

55,632
50,071
5,561

57,327
51,775
5,552

57,362
51,842
5,520

41
42
43

Federal Land B anks..........................................................
1- to 4-family..................................................................
F a rm ................................................................................

25,624
927
24,697

31,277
1,552
29,725

38,131
2,099
36,032

33,311
1,708
31,603

35,574
1,893
33,681

36,837
1,985
34,852

38,131
2,099
36,032

40,258
2,228
38,030

44
45
46

Federal Home Loan Mortgage C orporation ................
1- to 4-family..................................................................
Multifamily......................................................................

3,064
2,407
657

4,035
3,059
976

5,068
3,873
1,195

4,235
3,210
1,025

4,014
3,037
977

4,543
3,459
1,084

5,068
3,873
1,195

5,160
3,952
1,208

47 Mortgage pools or trusts2 ....................................................
48 Government National Mortgage Association................
49
1- to 4-family..................................................................
50
Multifamily......................................................................

88,633
54,347
52,732
1,615

119,278
76,401
74,546
1,855

142,258
93,874
91,602
2,272

124,632
80,843
78,872
1,971

129,647
84,282
82,208
2,074

136,583
89,452
87,276
2,176

142,258
93,874
91,602
2,272

147,251'
97,184
94,810
2,374

51
52
53

Federal Home Loan Mortgage C o rporation................
1- to 4-family..................................................................
Multifamily......................................................................

11,892
9,657
2,235

15,180
12,149
3,031

16,854
13,471
3,383

15,454
12,359
3,095

16,120
12,886
3,234

16,659
13,318
3,341

16,854
13,471
3,383

17,100
13,680
3,420

54
55
56
57
58

Farmers Home Administration........................................
1- to 4-family..................................................................
Multifamily......................................................................
Com m ercial....................................................................
F a rm ................................................................................

22,394
13,400
1,116
3,560
4,318

27,697
14,884
2,163
4,328
6,322

31,530
16,683
2,612
5,271
6,964

28,335
14,926
2,159
4,495
6,755

29,245
15,224
2,159
4,763
7,099

30,472
16,226
2,235
5,059
6,952

31,530
16,683
2,612
5,271
6,964

32,967'
16,640'
2,825'
5,382'
8,120'

59 Individual and others3 ..........................................................
60
1- to 4-family......................................................................
61
Multifamily..........................................................................
62 Comm ercial........................................................................
63 F a rm ....................................................................................

150,863
83,708
21,351
22,883
22,921

171,821
99,414
23,251
24,128
25,028

196,896
113,838
26,058
26,819
30,181

177,831
101,952
23,755
25,529
26,595

183,992
104,838
24,596
26,505
28,053

190,491
109,780
25,407
26,299
29,005

196,8%
113,838
26,058
26,819
30,181

203,121'
116,945'
27,165'
27,649'
31,362

1. Includes loans held by nondeposit trust companies but not bank trust de­
partments.
2. Outstanding principal balances of mortgages backing securities insured or
guaranteed by the agency indicated.
3. Other holders include mortgage companies, real estate investment trusts, state
and local credit agencies, state and local retirement funds, noninsured pension
funds, credit unions, and U.S. agencies for which amounts are small or separate
data are not readily available.




N ote . Based on data from various institutional and governmental sources, with
some auarters estimated in part by the Federal Reserve in conjunction with the
Federal Home Loan Bank Board and the Department of Commerce. Separation
of nonfarm mortgage debt by type of property, if not reported directly, and in­
terpolations and extrapolations when required, are estimated mainly by the Federal
Reserve. Multifamily debt refers to loans on structures of five or more units.

A 40
1.56

Domestic Financial Statistics □ June 1981
CONSUMER INSTALLMENT CREDIT1Total Outstanding, and Net Change
M illions o f d o llars
1980

Holder, and type of credit

1978

1979

1981

1980

Nov.

Oct.

Dec.

Jan.

Feb.

Mar.

Apr.

Amounts outstanding (end of period)
1 T o ta l...........................................................

273,645

312,024

313,435

307,222

308,051

313,435

310,554

309,188

310,766

313,419

By major holder
Commercial b a n k s ....................................
Finance com panies....................................
Credit unions..............................................
R etailers-....................................................
Savings and lo a n s......................................
Gasoline com panies..................................
Mutual savings banks................................

136.016
54.298
44.334
25.987
7.097
3.220
2.693

154.177
68.318
46.517
28,119
8.424
3.729
2.740

145,765
76,756
44.041
29.410
9,911
4.717
2.835

145.895
74.985
43.518
25.703
9.611
4.736
2.774

145.147
75.690
43.606
26.469
9.687
4.662
2.790

145.765
76.756
44.041
29.410
9.911
4.717
2.835

143.749
77.131
43.601
28.3(H)
10,023
4,929
2.821

142,030
78.090
43.776
27,329
10,173
4.958
2,832

141,897
79.490
44,212
26,965
10,458
4,898
2,846

142.070
81,033
44.390
27,227
10,792
5.046
2,861

9 A utom obile................................................
10
Commercial b a n k s ................................
11
Indirect p a p e r ....................................
12
Direct lo a n s........................................
13
Credit unions..........................................
14
Finance com panies................................

101.647
60.510
33.850
26.660
21.200
19.937

116.362
67,367
38.338
29,029
22.244
26,751

116.327
61.025
34.857
26.168
21.060
34.242

116.657
62.350
35.572
26.778
20.810
33.497

116.517
61.848
35,284
26.564
20.852
33.817

116.327
61.025
34.857
26.168
21.060
34.242

115.262
59.608
33,947
25,661
20.850
34.804

115,677
59,061
33,667
25,394
20,933
35,683

117,517
59,378
34.016
25.362
21,142
36,997

118,479
59,252
33,931
25,321
21,227
38,000

15 Revolving....................................................
16
Commercial b a n k s ................................
17
R etailers..................................................
18
Gasoline com panies..............................

48,309
24.341
20.748
3.220

56.937
29,862
23,346
3.729

59.862
30.001
25.144
4.717

54.598
28.331
21.531
4.736

55.304
28.360
22.282
4.662

59.862
30.001
25.144
4.717

58.985
29.952
24.104
4.929

57,566
29,412
23,196
4,958

56,831
29,051
22,882
4,898

57.322
29,127
23,149
5,046

19 Mobile h o m e ..............................................
20
Commercial b a n k s ................................
21
Finance com panies................................
22
Savings and lo a n s..................................
23
Credit unions..........................................

15.235
9.545
3.152
2,067
471

16,838
10.647
3.390
2.307
494

17.327
10.376
3.745
2.737
469

17.276
10,502
3.657
2,654
463

17.293
10.452
3.702
2.675
464

17.327
10.376
3.745
2.737
469

17.244
10,271
3,741
2,768
464

17,189
10,174
3,740
2,809
466

17,273
10.153
3,762
2,888
470

17,422
10,142
3,828
2,980
472

24 O ther............................................................
25
Commercial b a n k s ................................
26
Finance com panies................................
27
Credit unions..........................................
28
R etailers..................................................
29
Savings and lo a n s..................................
30
Mutual savings banks............................

108.454
41.620
31.209
22.663
5.239
5.030
2.693

121.887
46.301
38.177
23.779
4.773
6,117
2.740

119,919
44.363
38,769
22.512
4.266
7.174
2.835

118.691
44.712
37.831
22.245
4.172
6.957
2.774

118.937
44.487
38.171
22.290
4.187
7.012
2.790

119,919
44,363
38,769
22.512
4.266
7.174
2.835

119,063
43.918
38.586
22,287
4,196
7,255
2,821

118,756
43,383
38.667
22,377
4,133
7,364
2,832

119,145
43,315
38,731
22,600
4,083
7.570
2,846

120,196
43,549
39,205
22,691
4,078
7,812
2,861

2
3
4
5
6
7
8

By major type of credit

Net change (during period)3
31 T o ta l............................................................

43,079

38,381

1,410

702

839

1,619

869

1,996

3,108

2,331

By major holder
Commercial b a n k s ....................................
Finance com panies....................................
Credit unions..............................................
Retailers2 ....................................................
Savings and lo a n s......................................
Gasoline com panies..................................
Mutual savings banks................................

23,641
9.430
6,729
2.497
7
257
518

18.161
14.020
2.185
2.132
1.327
509
47

-8 .4 1 2
8.438
-2 .4 7 5
1.291
1.485
988
95

-3 3 6
454
63
134
246
98
43

-1 2 0
594
218
52
-1 4
72
37

-2 7 6
860
378
316
190
83
68

-1 .3 5 7
1,113
288
409
232
106
78

-5 4 4
1,530
444
103
254
209
0

612
1,539
287
253
418
-6
5

-345
1.253
272
531
421
141
58

39 A utom obile................................................
40
Commercial b a n k s ................................
41
Indirect p a p e r.............................. .
42
Direct lo an s........................................
43
Credit unions..........................................
44
Finance com panies............................

18.736
10.933
6,471
4,462
3.101
4.702

14.715
6,857
4,488
2,369
1.044
6,814

-3 5
- 6 .3 4 2
-3 .4 8 1
-2 .8 6 1
-1 .1 8 4
7.491

201
-3 4 8
-170
-178
18
531

245
-1 3 8
-4 4
-9 4
101
282

302
-4 9 1
-1 8 1
-3 1 0
174
619

-6 3
- 1 .2 5 3
-8 3 9
-4 1 4
206
984

979
-3 4 6
-2 2 9
-1 1 7
211
1,114

1,682
229
268
-3 9
132
1.321

428
-4 6 1
-2 5 6
-2 0 5
142
747

45 Revolving................................................
46
Commercial b a n k s ................................
47
R etailers.............................................
48
Gasoline com panies.........................

9.035
5.967
2.811
257

8.628
5,521
2.598
509

2.925
139
1.798
988

273
-1 9
194
98

265
121
72
72

616
211
322
83

557
59
392
106

441
166
66
209

587
346
247
-6

838
153
544
141

49 Mobile h o m e ..............................................
50
Commercial b a n k s ................................
51
Finance com panies................................
52
Savings and lo a n s..................................
53
Credit unions......................................

286
419
74
-276
69

1.603
1.102
238
240
23

488
-2 7 1
355
430
-2 5

141
-2 1
42
120
0

24
-3 3
44
11
2

66
-3 4
48
47
5

-2 4
-8 5
15
46
0

-4 7
-1 0 2
18
31
6

88
-3 5
25
97
1

145
-1 5
58
99
3

54 O ther............................................................
55
Commercial b a n k s ................................
56
Finance com panies................................
57
Credit unions..........................................
58
R etailers..................................................
59
Savings and lo a n s..................................
60
Mutual savings banks............................

15,022
6.322
4,654
3.559
-314
283
518

13,435
4,681
6,968
1,118
-466
1,087
47

-1.968
-1.938
592
-1.266

87
52
-119

305
-7 0

635

399
-7 8

623
-2 6 2
398
227
37
223
0

751

920
-2 2
448

32
33
34
35
36
37
38

By major type of credit

-5 0 7
1.056

95

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.




45
-6 0

126
43

268
115

-2 0
-2 5
37

38
193
199
-6
143
68

114

82
17
186
78

72
193
154

127

6
321
5

-1 3
322
58

2. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
3. Net change equals extensions minus liquidations (repayments, charge-offs,
and other credit): figures for all months are seasonally adjusted.

Consumer Debt

A41

1.57 CONSUMER INSTALLMENT CREDIT Extensions and Liquidations
M illions o f d o llars; m o n th ly d a ta a re seaso n ally a d ju ste d .
1980

Holder, and type of credit

1978

1979

1981

1980
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

Extensions

297,668

324,777

305.887

27,365

25,991

27,149

27,059

28,706

29,822

28,878

142.433
50.505
38.111
44.571
3.724
16.017
2.307

154.733
61.518
34.926
47.676
5.901
18.005
2.018

133.605
60.801
29.594
50.959
6.621
22.402
1.905

11.977
5.323
2.872
4.291
695
2.009
198

11.432
4.852
2.795
4.250
444
2.024
194

11.484
5.185
3.035
4.497
658
2.061
229

10.397
5.904
2.994
4.673
715
2.130
246

11.648
6.193
3.167
4.500
751
2.284
163

12.676
5.911
3.153
4.685
1.038
2.180
179

11.986
5,218
3.181
5,002
985
2,272
*” 234

9 A utom obile....................................................................
10 Commercial b a n k s ....................................................
Indirect p a p e r ........................................................
11
Direct lo an s.................. .........................................
12
13 Credit unions..............................................................
14
Finance com panies....................................................

87.981
52.969
29.342
23.627
18.539
16.473

93.901
S^.SS4
29.623
23.931
17.397
22.950

83.002
40.657
22.269
18.388
15.294
27.051

7.544
3.791
2.135
1.656
1.457
2.296

7.117
3.552
1.962
1.590
1.402
2.163

7.234
3.271
1.857
1.414
1.538
2.425

8.333
3.560
1.944
1.616
1.613
3.160

8.7(H)
4.117
2.365
1.752
1.586
2.997

7.205
3,438
1.929
1.509
1,589
2,178

15 Revolving........................................................................
Commercial b a n k s ....................................................
17 Retailers......................................................................
18 Gasoline com panies..................................................

105.125
51.333
37.775
16.017

120.174
61.048
41.121
18.005

129.580
61.847
45.331
22.402

11.124
5.264
3.851
2.009

10.953
5.155
3.774
2.024

11.614
5.554
3.999
2.061

11.483
5.185
4.168
2.130

11.867
5.602
3.981
2.284

12.071
5.695
4.196
2.180

12,352
5,561
4,519
2,272

19 Mobile h o m e..................................................................
20 Commercial b a n k s ....................................................
21
Finance com panies....................................................
■>? Savings and lo a n s......................................................
23
Credit unions..............................................................

5.412
3.697
886
609
220

6.471
4.542
797
948
184

5.098
2.942
898
1.146
113

513
257
89
159
8

424
243
93
74
14

479
254
89
119
17

383
171
81
119
12

409
185
88
118
18

641
259
88
269
25

551
251
100
184
16

24 O ther................................................................................

99.150
34.434
33.146
19.352
6.796
3.115
2.307

104.231
35.589
37.771
17.345
6.555
4.953
2.018

88.207
28.159
32.852
14.187
5.628
5.476
1.905

8.184
2.665
2.938
1.407
440
536
198

7.497
2.482
2.596
1.379
476
370
194

7.822
2.405
2.671
1.480
498
539
229

7.956
2.443
2.776
1.390
505
596
246

8.097
2.301
2.945
1.536
519
633
163

8.410
2.605
2.826
1.542
489
769
179

8,770
2.736
2,940
1.576
483
801
234

1
B y m ajor holder

3
4
5
6
7
8

Commercial b a n k s ........................................................
Finance com panies........................................................
Credit unions..................................................................
R etailersi........................................................................
Savings and lo a n s..........................................................
Gasoline com panies......................................................
Mutual savings banks....................................................
B\ major type o f credit

16

25
26

27
28
29
30

Commercial b a n k s ....................................................
Finance com panies....................................................
Credit unions..............................................................
Retailers......................................................................
Savings and lo a n s ......................................................
Mutual savings banks................................................

7.237
2.598
1.230
1.368
1.592 <
3.047

Liquidations

254,589

286,396

304.477

26,663

25,152

25,530

26,190

26,710

26,714

26,547

118.792
41.075
31.382
42.074
3.717
15.760
1.789

136.572
47.498
32.741
45.544
4.574
17.496
1.971

142.017
52.363
32.069
49.668
5.136
21.414
1.810

12.313
4.869
2.809
4.157
449
1.911
155

11.552
4.258
2.577
4.198
458
1.952
157

11.760
4.325
2.657
4.181
468
1.978
161

11.754
4.791
2.706
4.264
483
2.024
168

12.192
4.663
2.723
4.397
497
2.075
163

12.064
4.372
2.866
4.432
620
2.186
174

12,331
3.965
2,909
4,471
564
2.131
176

Finance com panies....................................................

69.245
42.036
22.871
19.165
15.438
11.771

79.186
46,697
25.135
21.562
16.353
16.136

83.037
46.999
25.750
21.249
16.478
19.560

7.343
4.139
2.305
1.834
1.439
1.765

6.872
3.690
2.006
1.684
1.301
1.881

6.932
3.762
2.038
1.724
1.364
1.806

7.300
3.851
2.069
1.782
1.386
2.063

7.354
3.906
2.173
1.733
1.402
2.046

7.018
3.888
2.097
1.791
1.454
1.676

6.777
3.899
2.185
1.714
1.447
1.431

45 Revolving........................................................................
46
Commercial b a n k s ....................................................
47
R etailers......................................................................
48 Gasoline com panies..................................................

96.090
45.366
34.964
15.760

111.546
55.527
38.523
17.496

126.655
61.708
43.533
21.414

10.851
5.283
3.657
1.911

10.688
5.034
3.702
1.952

10.998
5.343
3.677
1.978

10.926
5.126
3.776
2.024

11.426
5.436
3.915
2.075

11.484
5.349
3.949
2.186

11.514
5.408
3.975
2.131

49 Mobile h o m e ..................................................................
50
Commercial b a n k s ....................................................

5.126
3.278
812
885
151

4.868
3.440
559
708
161

4.610
3.213
543
716
138

372
278
47
39
8

400
276
49
63
12

413
288
41
72
12

407
256
66
73
12

456
287
70
87
12

553
294
63
172
24

406
266
42
85
13

84.128
28.112
28.492
15.793
7.110
2.832
1.789

90.796
30.908
30.803
16.227
7.021
3.866
1.971

90.175
30.097
32.260
15.453
6.135
4.420
1.810

8.097
2.613
3.057
1.362
500
410
155

7.192
2.S52
2.328
1.264
496
395
157

7.187
2.367
2.478
1.281
504
396
161

7.557
2.521
2.662
1.308
488
410
168

7.474
2.563
2.547
1.309
482
410
163

7.659
2.533
2.633
1.388
483
448
174

7.850
2.758
2,492
1,449
496
479
176

31
B y major holder
32 Commercial b a n k s ........................................................
33 Finance com panies........................................................
34 Credit unions..................................................................
35 Retailers1 ........................................................................
36 Savings and lo a n s ..........................................................
37 Gasoline com panies......................................................
38 Mutual savings banks....................................................
B y m ajor type o f credit
39 A utom obile....................................................................
40
Commercial b a n k s ....................................................
41
Indirect p a p e r ........................................................
42
Direct lo a n s............................................................
43
Credit unions..............................................................

44

51
52

53

Finance com panies....................................................
Savings and lo a n s ......................................................
Credit unions..............................................................

54 O ther................................................................................

55
56
57
58
59
60

Commercial b a n k s ....................................................
Finance com panies....................................................
Credit unions..............................................................
R etailers......................................................................
Savings and lo a n s ......................................................
Mutual savings banks................................................

1.
Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.




A 42

Domestic Financial Statistics □ June 1981

1.58 FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1978
Transaction category, sector

1975

1976

1977

1979

1978

1979

1980

1980
HI

H2

HI

H2

H I'

H2r

Nonfinancial sectors
1 Total funds raised..........................................................
2 Excluding equities..........................................................

210.8
200.7

271.9
261.0

338.5
335.3

400.4
398.3

394.9
390.6

365.4
353.9

384.8
387.4

416.0
409.2

380.5
377.7

408.2
402.3

325.8
318.0

404.9
389.7

By sector and instrument
3 U.S. government............................................................
4 Treasury securities....................................................
5 Agency issues and mortgages..................................
6 All other nonfinancial sectors......................................
7 Corporate e q u itie s....................................................
8 Debt instruments........................................................
9
Private domestic nonfinancial sectors....................
10
Corporate e q u itie s................................................
11
Debt instruments....................................................
12
Debt capital instrum ents..................................
13
State and local obligations............................
14
Corporate b onds............................................
15
Mortgages........................................................
16
Home Mortgages........................................
17
Multifamily residential..............................
18
Comm ercial................................................
19
F a rm ............................................................
20
Other debt instrum ents....................................
21
Consumer c re d it............................................
22
Bank loans n.e.c.............................................
23
Open market p a p e r ......................................
24
O ther................................................................

85.4
85.8
- .4
125.4
10.1
115.3
112.1
9.9
102.2
98.4
16.1
27.2
55.1
39.5
•
11.0
4.6
3.8
9.7
-1 2 .3
- 2 .6
9.0

69.0
69.1
- .1
202.8
10.8
192.0
182.0
10.5
171.5
123.5
15.7
22.8
85.0
63.6
1.8
13.4
6.1
48.0
25.6
4.0
4.0
14.4

56.8
57.6
-.9
281.7
3.1
278.6
267.8
2.7
265.1
175.6
23.7
21.0
130.9
96.3
7.4
18.4
8.8
89.5
40.6
27.0
2.9
19.0

53.7
55.1
-1 .4
346.7
2.1
344.6
314.4
2.6
311.8
196.6
28.3
20.1
148.2
104.6
10.2
23.3
10.2
115.2
50.6
37.3
5.2
22.2

37.4
38.8
-1 .4
357.6
4.3
353.2
336.4
3.5
333.0
199.9
18.9
21.2
159.9
109.1
8.9
25.7
16.2
133.0
44.2
50.6
10.9
27.3

79.2
79.8
-.6
286.2
11.5
274.7
256.7
9.5
247.2
179.7
25.0
27.9
126.7
81.5
8.7
21.6
14.0
67.2
3.1
37.9
5.8
20.4

61.4
62.3
- .9
323.4
- 2 .6
326.0
302.8
- 1 .8
304.6
188.3
27.8
20.6
139.8
100.1
9.3
21.2
9.3
116.3
50.1
43.1
5.3
17.8

46.0
47.9
- 1 .9
370.0
6.8
363.2
326.1
7.0
319.1
205.0
28.7
19.6
156.7
109.1
11.2
25.4
11.1
114.1
51.0
31.4
5.1
26.5

28.6
30.9
-2 .3
351.9
2.8
349.1
338.6
2.8
335.8
198.8
16.0
22.4
160.4
109.8
8.1
26.0
16.6
137.0
48.3
48.2
12.0
28.4

46.1
46.6
- .5
362.1
5.9
356.2
333.0
4.1
328.9
201.1
21.8
19.9
159.4
108.5
9.7
25.4
15.9
127.8
39.0
52.9
9.7
26.2

64.7
65.3
- .6
261.1
7.8
253.4
231.9
6.0
225.9
171.9
18.5
33.6

93.7
94.3
- .6
311.2
15.3
295.9
281.5
13.0
268.5
187.4
31.6
22.3

' ' 70!7
8.1
25.5
15.5
54.0
- 4 .3
9.7
29.7
18.9

’ *92.8
9.0
19.3
12.4
81.1
8.9
65.0
-1 8 .1
25.2

182.0
15.2
90.5
76.3
10.9
4.7
60.7

267.8
20.4
139.9
107.5
14.7
12.9
79.9

314.4
23.6
162.6
128.3
18.1
15.4
94.8

336.4
15.5
164.9
156.0
25.8
15.9
114.3

254.2
20.7
100.8
132.0
19.0
12.5
101.1

302.8
21.0
156.1
125.6
15.3
16.4
93.9

326.1
26.1
169.1
130.9
20.8
14.4
95.7

338.6
13.0
167.6
157.9
23.5
15.5
118.9

333.0
18.0
161.2
153.7
28.1
15.9
109.7

231.9
16.6
88.7

281.5
30.4
113.7

20.9
10.3
95.4

14.7
15.5
107.2

50.1
10.5
20.8
.3
20.5
8.6
6.8
1.9
3.3

77.1
2.7
13.9
.4
13.5
5.1
3.1
2.4
3.0

92.2
2.6
32.3
- .5
32.8
4.0
18.3
6.6
3.9

110.9
3.5
21.2
.9
20.3
3.9
2.3
11.2
3.0

91.8
9.5
29.9
2.2
27.7
.8
11.8
10.1
5.0

95.7
-1 .8
20.6
-.8
21.4
5.0
9.3
3.6
3.6

88.7
7.0
43.9
- .2
44.1
3.0
27.3
9.6
4.2

116.1
2.8
13.3
*
13.3
3.0
1.0
6.1
3.1

105.6
4.1
29.1
1.7
27.3
4.7
3.5
16.3
2.8

29.3
1.8
27.5
2.0
4.4
15.7
5.4

29.7
2.3
27.4
- .4
18.7
4.5
4.6

25
26
27

By borrowing sector..............................................
State and local governments............................
Households..........................................................

29
30
31

F a rm ....................................................................
Nonfarm noncorporate......................................
Corporate............................................................

112.1
13.7
49.7
48.7
8.8
2.0
37.9

34
35
36
37
38
39
40

Foreign.......................................................................
Corporate e q u itie s................................................
Debt instruments.......................... .........................
B o n d s..................................................................
Bank loans n.e.c.................................................
Open market p a p e r ..........................................
U.S. government lo a n s .......... .........................

28.0
9.9
13.3
.2
13.2
6.2
3.9
.3
2.8

Credit Market Funds Raised by Financial Sectors
1 Total funds raised..........................................................

12.7

24.1

54.0

81.4

88.5

70.8

80.7

82.1

86.3

90.7

53.7

84.2

By instrument
U.S. government related .................... .........................
Sponsored credit agency securities..........................
Mortgage pool securities..........................................
Loans from U.S. government..................................
Private financial sectors................................................
Corporate eq u itie s....................................................
Debt instruments........................................................
Corporate bonds....................................................
Mortgages................................................................
Bank loans n.e.c.....................................................

13.5
2.3
10.3
.9
- .8
.6
- 1 .4
2.9
2.3
- 3 .7

18.6
3.3
15.7
- .4
5.5
1.0
4.4
5.8
2.1
- 3 .7

26.3
7.0
20.5
-1 .2
27.7
.9
26.9
10.1
3.1
-.3

41.4
23.1
18.3

52.4
24.3
28.1

47.5
24.3
23.2

38.5
21.9
16.6

44.3
24.3
20.1

45.8
21.5
24.2

59.0
27.0
32.0

45.8
25.1
20.7

48.9
23.7
25.2

40.0
1.7
38.3
7.5
.9
2.8

36.1
2.3
33.8
7.8
- 1 .2
- .4

23.3
3.4
19.8
7.2
-.9
1.0

42.2
2.2
40.0
8.5
2.1
2.5

37.8
1.1
36.7
6.4
- .3
3.1

40.5
2.0
38.4
8.7
-.5
-.7

31.7
2.5
29.2
7.0
- 1 .9
- .2

7.9
2.6
5.3
10.5
- 6 .8
1.0

35.3
4.3
31.0
3.5
4.8
- 1 .9

Open market paper and repurchase
agreements......................................................
Loans from Federal Home Loan B anks............
Total, by sector..............................................................
Sponsored credit agencies............................................
Mortgage p o o ls..............................................................
Private financial sectors................................................
Commercial b a n k s ....................................................
Bank affiliates............................................................
Savings and loan associations..................................
Other insurance companies......................................
Finance companies....................................................
R E IT s.........................................................................
Open-end investment com panies............................

1.1
-4 .0
12.7
3.2
10.3
-.8
1.2
.3
-2 .3
1.0
.5
-1 .4
-.1

2.2
- 2 .0
24.1
2.9
15.7
5.5
2.3
- .8
.1
.9
6.4
-2 .4
-1 .0

9.6
4.3
54.0
5.8
20.5
27.7
1.1
1.3
9.9
.9
17.6
-2 .2
-.9

14.6
12.5
81.4
23.1
18.3
40.0
1.3
6.7
14.3
1.1
18.6
-1 .0
- 1 .0

18.4
9.2
88.5
24.3
28.1
36.1
1.6
4.5
11.4
1.0
18.9
-.4
-1 .0

5.4
7.1
69.0
24.4
23.2
23.3
.6
5.6
6.4
.8
8.8
- .9
2.0

13.5
13.2
80.7
21.9
16.6
42.2
1.5
5.8
16.4
1.0
18.9
- 1 .0
- .5

15.7
11.8
82.1
24.3
20.1
37.8
1.1
7.6
12.2
1.1
18.2
- 1 .0
-1 .5

23.0
7.8
86.3
21.5
24.2
40.5
1.3
6.2
9.9
1.0
23.5
- .6
- 1 .0

13.8
10.5
90.7
27.0
32.0
31.7
1.8
2.9
12.9
.9
14.3
- .1
- .9

- 3 .6
4.1

14.5
10.2

25.1
20.7
7.9
.8
4.5
-3 .1
.8
5.5
- 1 .4
.9

23.7
25.2
35.3
.3
6.6
17.0
.7
10.0
- 2 .0
2.6

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

-

-

-

-

-

-

-

-

-

Total credit market funds raised, all sectors, by type
1 Total funds raised, by in stru m en t..............................
2 Investment company s h a re s ........................................
3 Other corporate equities..............................................
4 Debt instruments............................................................
5 U.S. government securities......................................
6 State and local obligations........................................
7 Corporate and foreign b o n d s..................................
8 Mortgages....................................................................
9 Consumer c re d it........................................................

10 Bank loans n.e.c.........................................................
11
Open market paper and R P s ..................................
http://fraser.stlouisfed.org/
12 Other lo a n s ................................................................

Federal Reserve Bank of St. Louis

223.6

295.9

392.5

481.8

483.4

434.1

465.5

498.1

466.7

498.9

379.5

489.2

- .1
10.8
212.9
98.2
16.1
36.4
57.2
9.7
-1 2 .2
- 1 .2
8.7

- 1 .0
12.9
284.1
88.1
15.7
37.2
87.0
25.6
7.0
8.1
15.3

- .9
4.9
388.5
84.3
23.7
36.1
133.9
40.6
29.8
15.0
25.2

-1 .0
4.7
478.1
95.2
28.3
31.6
149.1
50.6
58.4
26.4
38.6

-1 .0
7.6
476.8
89.9
18.9
32.9
158.6
44.2
52.5
40.5
39.5

2.0
15.0
417.1
126.8
22.2
35.6
124.8
3.1
50.7
21.4
32.6

-.5
.1
465.9
100.0
27.8
34.2
141.9
50.1
54.9
22.4
34.6

- 1 .5
9.4
490.2
90.4
28.7
29.1
156.3
51.0
61.8
30.4
42.5

- 1 .0
5.8
461.9
74.5
16.0
34.1
159.8
48.3
48.6
41.1
39.4

- .9
9.3
490.5
105.2
21.8
31.5
157.4
39.0
56.2
39.8
39.5

.9
9.5
369.1
110.6
18.5
46.1
113.0
-4 .3
15.1
41.9
28.4

2.6
17.0
469.6
142.8
31.6
25.4
138.2
8.9
81.7
.9
40.0

Flow o f Funds

A 43

1.59 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates
1978
Transaction category, or sector

1975

1976

1977

1978

1979

1979

1980

1980
HI

H2

HI

H2

H I'

H 2'

1 Total funds advanced in credit markets to nonfinancial
sectors ..............................................................................

200.7

261.0

335.3

398.3

390.6

349.8

387.4

409.2

377.7

402.3

318.0

389.7

2
3
4
5
6

By public agencies and foreign
Total net advances................................................................
U.S. government securities..............................................
Residential m ortgages......................................................
FHLB advances to savings and lo a n s ............................
Other loans and securities................................................

44.6
22.5
16.2
- 4 .0
9.8

54.3
26.8
12.8
-2 .0
16.6

85.1
40.2
20.4
4.3
20.2

109.7
43.9
26.5
12.5
26.9

80.1
2.0
36.1
9.2
32.8

95.8
22.3
32.0
7.1
34.5

102.8
43.7
22.2
13.2
23.7

116.6
44.0
30.7
11.8
30.1

47.6
-2 2 .1
32.6
7.8
29.2

112.5
26.2
39.6
10.5
36.3

101.5
24.7
33.4
4.1
39.3

90.4
21.3
30.7
10.2
28.3

7
8
9
10
11

Total advanced, by sector
U.S. government....................................................................
Sponsored credit agencies....................................................
Monetary authorities............................................................
Foreign....................................................................................
Agency borrowing not included in line 1 ..........................

15.1
14.8
8.5
6.1
13.5

8.9
20.3
9.8
15.2
18.6

11.8
26.8
7.1
39.4
26.3

20.4
44.6
7.0
37.7
41.4

22.5
57.5
7.7
-7 .7
52.4

26.0
48.6
4.5
16.7
47.5

19.4
39.4
13.4
30.6
38.5

21.4
49.8
.5
44.9
44.3

23.8
49.9
.9
-2 7 .0
45.8

21.3
65.2
14.5
11.7
59.0

29.5
43.6
14.6
13.8
45.8

21.6
52.9
-5 .6
21.5
48.9

Private domestic funds advanced
12 Total net advances................................................................
13 U.S. government securities..............................................
14 State and local obligations................................................
15 Corporate and foreign b o n d s..........................................
16 Residential m ortgages......................................................
17 Other mortgages and loans..............................................
18 L ess: Federal Home Loan Bank advances....................

169.7
75.7
16.1
32.8
23.2
17.9
- 4 .0

225.4
61.3
15.7
30.5
52.6
63.3
- 2 .0

276.5
44.1
23.7
22.5
83.3
107.3
4.3

330.0
51.3
28.3
22.5
88.2
152.2
12.5

362.9
87.9
18.9
25.6
81.8
157.9
9.2

301.5
104.6
22.2
25.5
58.1
98.2
7.1

323.2
56.3
27.8
24.1
87.1
141.1
13.2

336.9
46.4
28.7
20.9
89.5
163.3
11.8

375.9
96.6
16.0
26.9
85.1
159.1
7.8

348.8
79.1
21.8
24.3
78.5
155.6
10.5

262.4
85.9
18.5
32.6
45.2
84.2
4.1

348.2
121.5
31.6
19.5
71.0
114.7
10.2

Private financial intermediation
19 Credit market funds advanced by private financial
institutions......................................................................
20 Commercial banking..........................................................
21
Savings institutions............................................................
22
Insurance and pension funds............................................
23
Other finance......................................................................

122.5
29.4
53.5
40.6
- 1 .0

190.1
59.6
70.8
49.9
9.8

257.0
87.6
82.0
67.9
19.6

296.9
128.7
75.9
73.5
18.7

292.5
121.1
56.3
70.4
44.7

265.6
103.5
57.6
76.4
28.1

301.7
132.5
75.8
76.9
16.6

292.0
125.0
75.9
70.2
20.9

307.5
124.6
57.7
75.4
49.8

277.4
117.6
54.9
65.5
39.6

230.7
57.0
32.1
86.4
55.2

293.0
142.4
81.1
68.0
1.5

24 Sources of fu n d s....................................................................
25
Private domestic d e p o sits................................................
26
Credit market borrowing..................................................
27
Other sources......................................................................
28
Foreign funds..................................................................
29
Treasury balances..........................................................
30
Insurance and pension reserv es..................................
31
Other, net........................................................................

122.5
92.0
- 1 .4
32.0
- 8 .7
- 1 .7
29.7
12.7

190.1
124.6
4.4
61.0
-4 .6
- .1
34.5
31.2

257.0
141.2
26.9
89.0
1.2
4.3
49.4
34.1

296.9
142.5
38.3
116.0
6.3
6.8
62.7
40.3

292.5
136.7
33.8
122.0
26.3
.4
49.0
46.3

265.6
163.9
19.8
81.9
-2 0 .0
- 2 .0
58.5
45.4

301.7
138.3
40.0
123.5
5.7
1.9
66.2
49.6

292.0
146.7
36.7
108.6
6.9
11.6
59.2
31.0

307.5
121.7
38.4
147.3
49.4
5.1
53.9
38.9

277.4
151.6
29.2
96.6
3.2
- 4 .3
44.0
53.7

230.7
148.3
5.3
77.2
-1 8 .1
-2 .5
62.4
35.4

293.0
183.0
31.0
79.0
-2 8 .1
-2 .6
55.6
54.1

Private domestic nonfinancial investors
32 Direct lending in credit markets..........................................
33 U.S. government securities..............................................
34 State and local obligations................................................
35 Corporate and foreign b o n d s..........................................
36 Commercial paper..............................................................
37
O ther....................................................................................

45.8
24.1
8.4
8.4
-1 .3
6.2

39.7
16.1
3.8
5.8
1.9
12.0

46.3
23.0
2.6
-3 .3
9.5
14.5

71.5
33.2
4.5
-1 .4
16.3
18.8

104.2
57.8
-2 .5
11.1
10.7
27.1

55.7
30.7
-1 .8
5.4
-2 .4
23.9

61.4
32.1
7.0
-3 .7
8.2
17.8

81.6
34.4
2.0
1.0
24.4
19.8

106.8
64.1
-2 .3
7.8
12.5
24.7

100.5
51.5
-2 .7
14.2
9.0
28.5

36.9
15.5
-1 .6
5.2
-5 .7
23.6

86.1
48.8
7.9
5.3
-2 .9
27.0

38 Deposits and currency..........................................................
39
Security RPs........................................................................
40 Money market fund sh ares..............................................
41
Time and savings acco u n ts..............................................
42
Large at commercial banks..........................................
43
Other at commercial banks..........................................
44
At savings institutions..................................................
45
M oney..................................................................................
46
Demand deposits............................................................
47
Currency..........................................................................

98.1
.2
1.3
84.0
-1 5 .8
40.3
59.4
12.6
6.4
6.2

131.9
2.3
*
113.5
-1 3 .2
57.6
69.1
16.1
8.8
7.3

149.5
2.2
.2
121.0
23.0
29.0
69.0
26.1
17.8
8.3

151.8
7.5
6.9
115.2
45.9
8.2
61.1
22.2
12.9
9.3

144.7
6.6
34.4
84.7
.4
39.3
45.1
18.9
11.0
7.9

173.5
4.7
29.2
131.8
12.7
62.9
56.2
7.8
- 1 .8
9.6

148.7
9.8
6.1
110.7
33.9
18.4
58.5
22.1
11.6
10.5

154.8
5.1
7.7
119.8
57.9
- 1 .9
63.8
22.3
14.2
8.1

131.1
18.5
30.2
71.4
-2 5 .3
41.3
55.4
10.9
1.6
9.3

158.1
-5 .3
38.6
97.9
26.0
37.3
34.7
26.8
20.3
6.5

157.3
5.3
61.9
92.3
-1 2 .0
60.8
43.5
-2 .2
-1 1 .3
9.0

194.6
7.4
-3 .4
178.9
72.6
37.7
68.7
11.8
.2
11.6

48 Total of credit market instruments, deposits and
currency ..........................................................................

143.9

171.6

195.8

223.3

248.9

229.1

210.1

236.4

237.9

258.7

194.2

280.8

49
50
51

Public support rate (in percent)......................................
Private financial intermediation (in percent)................
Total foreign funds............................................................

22.2
72.2
- 2 .6

20.8
84.3
10.6

25.4
93.0
40.5

27.5
90.0
44.0

20.5
80.6
18.6

27.4
88.1
-3 .3

26.5
93.4
36.3

28.5
86.7
51.8

12.6
81.8
22.4

28.0
79.5
14.9

31.9
87.9
- 4 .3

23.2
84.2
—6.6

Memo : Corporate equities not included above
52 Total net issu es......................................................................
53 Mutual fund shares............................................................
54 Other e q u itie s....................................................................

10.7
- .1
10.8

11.9
-1 .0
12.9

4.0
-.9
4.9

3.7
-1 .0
4.7

6.6
- 1 .0
7.6

17.0
-2 .0
15.0

- .4
- .5
.1

7.9
-1 .5
9.4

4.8
- 1 .0
5.8

8.4
- .9
9.3

10.4
.9
9.5

19.6
2.6
17.0

55 Acquisitions by financial institutions..................................
56 Other net purchases..............................................................

9.6
1.1

12.3
-.4

7.4
-3 .4

7.6
-3 .8

15.7
-9 .1

18.7
- 1 .7

.4
- .8

14.7
- 6 .8

12.5
-7 .7

18.9
-1 0 .5

10.5
- .1

25.1
-5 .5

Notes by line number .
1. Line 2 of p. A42.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities. Included below in lines 3,
13, and 33.
12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. Also sum
of lines 27, 32, 39, 40, 41, and 46.
17. Includes farm and commercial mortgages.
25. Sum of lines 39, 40, 41, and 46.
26. Excludes equity issues and investment company shares. Includes line 18.
28. Foreign deposits at commercial banks, bank borrowings from foreign branches,
and liabilities of foreign banking agencies to foreign affiliates.
29. Demand deposits at commercial banks.




30. Excludes net investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 12 less line 19 plus line 26.
33-37. Lines 13-17 less amounts acquired by private finance. Line 37 includes
mortgages.
47. Mainly an offset to line 9.
48. Lines 32 plus 38, or line 12 less line 27 plus 45.
49. Line 2/line 1.
50. Line 19/line 12.
51. Sum of lines 10 and 28.
52. 54. Includes issues by financial institutions.
N ote . Full statements for sectors and transaction types quarterly, and annually
for flows and for amounts outstanding, may be obtained from Flow of Funds
Section, Division of Research and Statistics, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.

A 44

Domestic Nonfinancial Statistics □ June 1981

2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1980
Measure

1978

1979

1981

1980
Sept.

Oct.

Nov.

Dec.

Jan.

1 Industrial production1 ............................
2
3
4
5
6
7

Market groupings
Products, to ta l..........................................
Final, to ta l............................................
Consumer g oods..............................
E quipm ent........................................
Intermediate..........................................
M aterials....................................................

144.8
135.9
149.1
132.8
154.1
148.3

Industry groupings
8 M anufacturing..........................................

150.0
147.2
150.8
142.2
160.5
156.4

146.8
145.4
145.5
145.1
151.9
147.7

145.3
143.9
144.3
143.2
150.6
142.4

147.2
145.8
146.6
144.8
152.4
146.4

143.4

153.6

148.7
147.5
148.0
146.7
153.5
150.5

149.9
148.3
147.7
149.1
156.1
152.6

150.3'
148.3'
147.2
149.8'
157.7'
153.8'

149.1

F e b .'

M ar.'

Apr

May

151.5

152.2

149.8
147.9
146.9
149.1
156.9
154.2

150.8
149.3
148.2
150.8
156.5
154.4

151.6
150.4
149.3
151.9
156.0
153.4

152.1
151.1
150.0
152.7
155.6
153.8

151.0

151.7

152.3

152.9

79.8
81.7

79.0
81.7

80.0
80.9

80.1
81.0

152.8

Capacity utilization (percent)1-2
9
M anufacturing......................................
10 Industrial materials industries............

84.4
85.6

85.7
87.4

79.0
79.8

76.7
76.4

78.2
78.4

79.4
80.4

79.9
81.3

11 Construction contracts (1972 = 100)3. .

174.1

185.6

161.8

163.0

167.0

210.0

193.0

185.0

177.0

183.0

172.0

12 Nonagricultural employment, total4 . . .
13 Goods-producing, to t a l......................
14
Manufacturing, total........................
15
Manufacturing, production-worker
16 Service-producing.............................. .
17 Personal income, to ta l............................
18 Wages and salary disbursements
19
M anufacturing..................................
20 Disposable personal income5 ................

131.
109.
105.
103.
143.
273.
258.
223.
268.

136.6
113.7
108.3
105.4
149.2
308.5
289.5
248.6
301.5

137.8
110.9
104.7
99.8
152.5
342.9
314.7
261.5
334.5

137.4
109.3
103.1
97.7
152.7
350.1
317.8
262.9

137.9

138.5

139.3
111.5
104.8
99.5
154.5
367.9
337.9
281.3
357.6

139.0

139.0

104.4
99.2
153.5
361.4
330.5
275.8

139.0
111.7
104.6
99.4
154.0
365.2'
335.6'
280.1'

139.4

103.7
100.7
153.1
354.7
323.6
267.6

138.2
110.7
104.3
99.1
153.3
358.3
328.0
273.1
348.4

104.9
99.6
154.6
371.1
340.0
282.2

105.1
99.8
154.5
373.2
340.7
285.2

105.0
99.8
154.8
n.a.
n.a.
n.a.

21 Retail sales6 ..............................................

253.8

281.6

300.0

306.0

308.0

313.8

315.8

326.6

331.7

327.6

328.2

Prices7
22 Consum er..............................................
23
Producer finished goods......................

195.4
194.6

217.4
216.1

246.8
246.9

251.7
251.4

253.9
255.4

256.2
256.2'

258.4
257.2'

260.5
260.4'

263.2
262.4

266.8
267.7

n.a.
268.9

1. The industrial production and capacity utilization series have been revised
back to January 1979.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, and Department of Com­
merce.
3. Index of dollar value of total construction contracts, including residential,
nonresidential, and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
5. Based on data in Survey o f Current Business (U.S. Department of Commerce).
Series for disposable income is quarterly.

2.11

110.0

111.1

80.0
81.7'

111.6

265.1
265.3

110.8

n.a.

110.2

6. Based on Bureau of Census data published in Survey o f Current Business.
7. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Departm ent of Labor.
N o t e . 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.

OUTPUT, CAPACITY, AND CAPACITY UTILIZATION
Seasonally adjusted
1980

1980

1981

1981

1980

1981

Series
Q2

Q3

Q4

Q l'

Output (1967 = 100)
141.0
139.6
141.8

148.7
153.1
146.4

151.3
157.3
148.2

4 Materials..................................................................

145.1

139.2

149.8

5 Durable goods........................................................
6 Metal m aterials..................................................
7 Nondurable goods..................................................
8 Textile, paper, and chemical............................
9
Textile..............................................................
10
P aper................................................................
11
Chemical..........................................................
12 Energy materials....................................................

140.6
100.6
166.0
171.9
116.4
142.1
208.3
130.0

131.5
86.6
161.9
165.6
113.4
142.9
197.9
129.6

145.1
109.9
175.5
182.7
113.2
148.9
226.9
129.5




Q3

Q4

Ql

Capacity (percent of 1967 output)

143.9
145.0
143.3

1 M anufacturing........................................................
2 Primary processing................................................
3 Advanced processing............................................

Q2

184.8
190.0
182.0

186.3
191.5
183.5

187.8
193.0
185.0

189.3
194.3
186.6

154.1

184.3

151.1
117.2
179.1
186.8
111.0
151.2
234.6
130.8

188.6
140.8
202.0
211.0
139.2
156.0
264.6
151.8

185.8

187.2

188.7

190.0
140.9
204.3
213.7
139.6
157.4
268.7
152.6

191.5
141.0
206.5
216.2
140.0
158.8
272.9
153.1

192.8
141.1
208.5
218.5
140.3
160.0
276.4
154.1

Q2

Q3

Q4

Q l'

Utilization rate (percent)
77.9
76.3
78.7

75.7
72.9
77.3

79.2
79.4
79.1

78.7

74.9

80.0

81.7

74.6
71.4
82.2
81.5
83.7
91.0
78.7
85.6

69.2
61.5
79.2
77.5
81.2
90.7
73.6
85.0

75.8
78.0
85.0
84.5
80.9
93.8
83.2
84.6

78.4
83.1
85.9
85.5
79.1
94.5
84.9
84.9

79.9
81.0
79.4

Labor Market

A45

2.11 Continued
Previous cycle1

Latest cycle2

1980

1980

1981

Series
High

Low

High

Low

May

Nov.

Oct.

Jan.

Dec.

Feb. r

M ar. r

A p r. r

May

Capacity utilization rate (percent)
13 M anufacturing......................................

88.0

69.0

87.2

74.9

77.6

78.2

79.4

79.9

80.0

79.8

79.9

80.0

80.1

Primary processing..........................
Advanced processing........................

93.8
85.5

68.2
69.4

90.1
86.2

70.9
77.1

75.8
78.6

77.6
78.5

79.6
79.2

80.8
79.6

81.2
79.5

81.2
79.1

80.5
79.6

80.6
79.7

80.5
79.9

16 M aterials................................................
17 Durable g o o d s..................................
Metal m a terials............................
18

92.6
91.5
98.3

69.4
63.6
68.6

88.8
88.4
96.0

73.7
68.0
58.4

78.3
74.1
70.0

78.4
73.5
71.5

80.4
76.5
81.4

81.3
77.3
81.0

81.7
78.0
82.0

81.7
78.2
83.2

81.7
78.9
84.1

80.9
78.7
81.1

81.0
78.8
81.0

19
20
21
22
23

Nondurable goods............................
Textile, paper, and chemical----T extile........................................
Paper ..........................................
Chem ical....................................

94.5
95.1
92.6
99.4
95.5

67.2
65.3
57.9
72.4
64.2

90.9
91.4
90.1
97.6
91.2

76.8
74.5
79.5
88.1
69.6

81.8
81.3
84.5
90.8
78.3

84.4
83.8
82.1
93.0
82.1

84.3
83.7
80.7
94.1
82.0

86.3
85.9
79.8
94.2
85.4

86.7
86.2
79.8
93.7
85.9

86.1
85.8
79.2
94.8
85.2

84.9
84.5
78.2
94.9
83.6

85.4
85.1
79.1
93.8
84.4

85.7
85.4
79.7
93.5
84.9

24

Energy m aterials..............................

94.6

84.8

88.3

83.1

85.3

83.1

85.5

85.0

84.6

85.2

84.8

80.3

79.7

14
15

1. Monthly high 1973; monthly low 1975.
2. Preliminary; monthly highs December 1978 through January 1980; monthly
lows July 1980 through October 1980.

2.12

LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
T h o u sa n d s o f p e rso n s; m o n th ly d a ta a re seaso n ally a d ju ste d . E x c e p tio n s n o te d .
1980

Category

1978

1979

1981

1980

Nov.

Dec.

Jan.

Feb.

M ar. r

Apr.

May

H ousehold Survey D ata
1 Noninstitutional population1 ........................

161,058

163,620

166,246

167,201

167,396

167,585

167,747

167,902

168,071

168,272

2 Labor force (including Armed Forces)1 . . .

102,537
100,420

104,996
102,908

106,821
104,719

107,404
105,285

107,191
105,067

107,668
105,543

107,802
105,681

108,305
106,177

108,851
106,722

109,533
107,406

91,031
3,342

93,648
3,297

93,960
3,310

93,999
3,340

93,888
3,394

94,294
3,403

94,646
3,281

95,136
3,276

95,513
3,463

95,882
3,353

6,047
6.0
58,521

5,963
5.8
58,623

7,448
7.1
59,425

7,946
7.5
59,797

7,785
7.4
60,205

7,847
7.4
59,917

7,754
7.3
59,946

7,764
7.3
59,598

7,746
7.3
59,219

8,171
7.6
58,739

3
4
5

6
7
8

Civilian labor force....................................
Employment
Nonagricultural industries2 ..................
A griculture..............................................
Unemployment
Number ..........................................................
Rate (percent of civilian labor force) .
Not in labor force ...............................................
E stablishment Survey D ata

9 Nonagricultural payroll employment3 ........

86,697

89,886

90,652

90,961

91,125

91,481

91,653r

91,705

91,490

91,474

M anufacturing................................................
Mining .....................................................................
Contract construction ........................................
Transportation and public utilities ................
Trade .......................................................................
Finance ............................................................
Service .....................................................................
Governm ent....................................................

20,505
851
4,229
4,923
19,542
4,724
16,252
15,672

21,062
960
4,483
5,141
20,269
4,974
17,078
15,920

20,365
1,025
4,468
5,155
20,571
5,162
17,736
16,171

20,282
1,054
4,475
5,132
20,660
5,225
17,969
16,164

20,312
1,072
4,508
5,137
20,638
5,245
18,068
16,145

20,345
1,086
4,610
5,142
20,762
5,268
18,133
16,135

20,375''
1,095
4,518
5,156
20,885
5,277
18,181
13,372

20,396
1,100
4,514
5,164
20,917
5,284
18,212
16,118

20,440
949
4,441
5,162
20,808
5,297
18,275
16,118

20,412
951
4,315
5,163
20,888
5,307
18,366
16,072

10
11
12
13
14
15
16
17

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 La­
bor).
2. Includes self-employed, unpaid family, and domestic service workers.




3.
Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family work­
ers, and members of the Armed Forces. Data are adjusted to the March 1979
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).

A 46

Domestic Nonfinancial Statistics □ June 1981

2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value i
Monthly data are seasonally adjusted.
Grouping

1967
pro­
por­
tion

1980
Aver­
age

1981
May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

F eb .r

Mar.

Apr.P

May

Index (1967 = 100)
Major M arket
1 Total in d e x ......................................

100.00

147.1

144.0

141.5

140.4

141.8

144.1

146.9

149.4

151.0

151.7

151.5

152.2

152.3

152.8

2 Products............................................
3 Final products..............................
4
Consumer g o o d s ....................
5
E q u ip m en t..............................
6
Intermediate products................
7 M aterials..........................................

60.71
47.82
27.68
20.14
12.89
39.29

146.8
145.4
145.5
145.1
151.9
147.7

143.7
143.1
142.4
144.0
146.2
144.3

142.5
142.3
142.1
142.6
143.5
140.0

142.8
142.4
142.0
142.9
144.5
136.5

143.8
142.8
142.7
142.9
147.6
138.6

145.3
143.9
144.3
143.2
150.6
142.4

147.2
145.8
146.6
144.8
152.4
146.4

148.7
147.5
148.0
146.7
153.5
150.5

149.9
148.3
147.7
149.1
156.1
152.6

150.3
148.3
147.2
149.8
157.7
153.8

149.8
147.9
146.9
149.1
156.9
154.2

150.8
149.3
148.2
150.8
156.5
154.4

151.6
150.4
149.3
151.9
156.0
153.4

152.1
151.1
150.0
152.7
155.6
153.8

Consumer goods
8 Durable consumer go o d s..............
9 Automotive p ro d u c ts................
10
Autos and utility vehicles.. . .
11
A utos....................................
Auto parts and allied goods..
12
13 Home goods................................
14
Appliances, A/C, and TV . . .
15
Appliances and T V ............
16
Carpeting and fu rn itu re........
17
Miscellaneous home goods...

7.89
2.83
2.03
1.90
80
5.06
1.40
1.33
1.07
2.59

136.5
132.7
109.9
103.4
190.4
138.7
117.1
119.5
155.0
143.6

128.8
118.5
92.6
88.4
184.0
134.6
102.8
106.0
154.2
143.8

128.2
121.6
97.1
95.7
183.7
132.0
105.6
108.5
146.7
140.2

128.3
129.2
106.4
105.2
186.9
127.7
102.3
103.4
136.1
138.1

128.6
121.5
94.1
91.3
191.1
132.6
114.2
114.2
141.1
139.1

132.7
130.6
105.5
98.0
194.2
134.0
116.3
117.6
146.1
138.6

139.6
141.8
120.2
110.7
196.8
138.3
123.5
125.6
150.2
141.5

142.9
145.3
124.3
114.3
198.6
141.5
128.4
131.0
154.9
143.0

141.3
139.1
115.9
105.3
198.0
142.6
126.8
129.2
156.3
145.4

138.8
127.1
99.8
90.0
196.6
145.4
131.2
132.7
156.8
148.4

138.9
129.0
103.7
96.0
193.4
144.4
124.2
126.7
159.9
149.0

143.3
139.4
116.7
108.3
196.9
145.5
127.7
129.7
159.3
149.4

144.0
142.5
120.1
113.2
199.4
144.9
121.5
122.9
163.1
150.0

146.9
149.6
129.1
120.8
201.6
145.4
119.4

19.79
4.29
15.50
8.33
7.17

149.1
126.8
155.3
147.0
165.0

147.7
127.9
153.2
146.1
161.5

147.6
126.7
153.4
146.2
161.7

147.4
122.5
154.3
146.4
163.6

148.3
123.6
155.1
146.0
165.7

148.9
122.1
156.3
147.0
167.1

149.4
125.1
156.1
147.7
165.9

150.1
127.3
156.4
148.0
166.2

150.2
123.7
157.5
148.9
167.6

150.5
122.3
158.3
148.7
169.5

150.1
119.9
158.5
149.3
169.1

150.2
120.0
158.5
149.7
168.8

151.3

151.2

159.6
150.4
170.4

170.1

2.63
1.92
2.62
1.45

208.7
122.9
151.9
171.2

203.0
120.2
150.1
169.8

202.6
120.6
150.9
170.1

204.3
121.5
153.5
176.5

209.3
122.0
153.9
178.6

213.0
122.3
154.0
178.3

210.2
124.8
151.5
175.0

210.0
127.3
150.8
171.8

212.5
127.0
152.3
171.2

214.7
127.6
154.8
174.4

217.6
129.5
149.4
167.0

220.0
129.1
146.5
166.5

221.2
128.1
150.3

12.63
6.77
1.44
3.85
1.47

173.3
157.0
241.3
128.5
149.0

171.9
157.8
242.2
129.5
149.1

169.8
155.2
241.0
126.1
147.1

170.1
154.8
244.4
126.0
142.0

170.3
154.5
243.6
124.4
145.9

170.5
154.2
243.4
123.9
146.1

172.3
154.4
244.3
123.9
146.1

174.5
157.1
250.1
126.4
146.0

177.8
160.7
255.7
130.6
146.1

178.9
163.8
265.9
131.1
149.1

178.3
165.2
272.2
131.0
149.9

180.5
167.3
279.6
132.0
149.3

182.2
168.7
285.2
132.5
149.2

183.3
169.8
286.8
133.4
150.3

Commercial transit, farm ..........
Commercial..............................
T ransit......................................
Farm..........................................

5.86
3.26
1.93
67

192.1
237.5
139.4
123.2

188.2
232.0
136.3
124.6

186.7
228.8
138.0
121.6

187.8
229.0
140.9
122.5

188.4
233.6
138.4
112.7

189.4
237.2
133.8
116.8

192.8
242.0
135.0
120.2

194.7
244.0
136.6
121.9

197.6
248.3
137.9
123.1

196.3
249.6
131.7
122.9

193.4
250.9
122.9
116.4

195.8
253.4
126.4
115.3

197.8
253.9
129.4
121.7

198.9
254.9
130.9

36 Defense and space..........................

7.51

97.8

97.2

96.8

97.2

96.9

97.4

98.5

99.8

100.7

101.0

100.2

100.8

101.0

101.4

Intermediate products
37 Construction supplies....................
38 Business supplies............................
39 Commercial energy products. . .

6.42
6.47
1.14

140.7
162.9
173.6

133.0
159.4
172.0

128.5
158.4
168.7

128.6
160.4
172.1

133.1
161.9
173.7

137.4
163.6
175.2

140.5
164.3
174.6

142.8
164.2
174.0

144.6
167.5
179.4

147.4
168.0
178.3

147.3
166.5
175.0

147.6
165.2
174.2

146.4
165.5
173.6

145.4

Materials
40 Durable goods materials................
41
Durable consumer p arts............
42
Equipment p a r t s ........................
43 Durable materials n.e.c.............
44
Basic metal m aterials............

20.35
4.58
5.44
10.34
5.57

143.1
109.0
187.3
135.0
104.6

139.8
100.1
190.8
130.5
100.0

133.8
96.0
182.5
125.0
95.9

129.0
93.9
177.6
118.9
84.7

131.3
98.1
176.3
122.4
89.4

134.2
104.2
176.0
125.4
91.7

140.4
110.8
178.5
133.4
102.0

146.6
115.5
184.0
140.6
114.4

148.4
116.3
185.8
142.9
115.0

150.2
116.2
189.2
144.6
116.3

150.7
115.9
188.9
146.0
118.1

152.4
119.9
191.5
146.2
118.1

152.4
122.1
192.1
144.8
115.5

153.0
123.2
193.2
145.0

18 Nondurable consumer goods........
19 Clothing........................................
20 Consumer staples........................
21
Consumer foods and tobacco
22
Nonfood staples......................
23
Consumer chemical
products........................
24
Consumer paper products .
25
Consumer energy products
26
Residential utilities........
Equipment
27 Business............................................
28 Industrial......................................
29
Building and m ining..............
30
M anufacturing........................
31
Power........................................
32
33
34
35

151.0

159.3

45 Nondurable goods m aterials........
46 Textile, paper, and chemical
m aterials..................................
47
Textile m a terials....................
48
Paper m a terials......................
49
Chemical m aterials................
50 Containers, n o ndurable............
51
Nondurable materials n.e.c.

10.47

170.7

165.2

159.6

156.2

159.8

169.7

173.7

174.1

178.8

180.2

179.6

177.6

179.0

180.0

7.62
1.85
1.62
4.15
1.70
1.14

177.0
116.0
145.1
216.7
165.1
137.3

171.5
117.6
141.7
207.3
155.8
136.4

163.4
114.0
143.4
193.3
157.7
136.8

158.5
114.4
138.4
186.1
159.0
136.6

163.2
111.0
142.0
194.9
158.8
137.9

175.1
114.7
148.2
212.6
167.2
137.2

180.5
114.9
147.3
222.9
168.6
135.7

181.0
113.0
149.5
223.8
166.6
139.1

186.5
111.8
150.0
234.1
169.7
141.1

187.7
111.9
149.6
236.4
172.1
142.0

187.4
111.1
151.7
235.5
171.0
140.4

185.3
109.9
152.2
231.8
168.8
139.4

187.0
111.2
150.8
235.1
169.8
139.5

188.3

52 Energy m aterials............................
53 Primary energy............................
54 Converted fuel m aterials..........

8.48
4.65
3.82

130.0
115.1
148.2

129.6
116.2
145.8

130.4
117.3
146.4

130.4
115.6
148.4

130.0
114.0
149.4

128.4
114.3
145.4

127.2
113.7
143.6

130.9
114.5
150.9

130.5
115.0
149.4

130.2
114.4
149.4

131.3
117.5
148.0

130.8
116.3
148.3

124.2
105.1
147.4

123.5

Supplementary groups
55 Home goods and c lo th in g ............
56 Energy, total....................................
57
Products........................................
58 M aterials......................................

9.35
12.23
3.76
8.48

133.2
138.8
158.5
130.0

131.5
137.9
156.7
129.6

129.5
138.4
156.3
130.4

125.3
139.2
159.1
130.4

128.5
139.2
159.9
130.0

128.5
138.2
160.5
128.4

132.2
136.8
158.5
127.2

135.0
139.2
157.9
130.9

133.9
139.7
160.5
130.5

134.8
139.9
161.9
130.2

133.2
139.2
157.1
131.3

133.8
138.2
154.9
130.8

134.1
134.4
157.4
124.2

134.6
133.9




123.5

Output

A 47

2.13 Continued
Grouping

SIC
code

1967
pro­
por­
tion

1981

1980

1980
Avg.
May

July

June

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb. r

Mar.

Apr.P

MayP

Index (1967 == 100)
Major I ndustry
12.05
6.36
5.69
3.88
87.95
35.97
51.98

150.4
132.9
169.9
189.7
146.6
161.1
136.6

149.6
133.4
167.7
186.0
143.4
158.0
133.3

150.1
132.9
169.3
188.7
140.3
155.3
129.9

150.1
130.6
171.8
192.4
139.1
154.7
128.3

150.5
129.6
173.8
195.4
140.6
156.9
129.4

150.5
130.5
172.7
193.9
143.4
160.3
131.7

150.2
132.1
170.4
190.3
146.4
161.8
135.8

152.8
136.0
171.5
191.5
149.1
163.3
139.3

154.0
139.3
170.3
190.3
150.6
165.0
140.6

155.2
141.1
171.0
191.1
151.1
165.2
141.4

155.2
143.3
168.5
187.4
151.0
166.1
140.7

155.8
143.8
169.3
188.6
151.7
165.5
142.2

152.6
136.2
170.8
190.7
152.3
166.1
142.7

152.5
135.7
171.3
191.2
152.9
166.6
143.5

10
11.12
13
14

.51
.69
4.40
.75

109.1
146.7
133.8
131.7

120.8
145.0
133.9
128.1

120.0
150.0
133.2
123.9

83.1
149.8
134.3
123.7

71.2
154.9
133.6
123.5

73.1
148.9
134.7
128.2

90.8
145.7
135.4
129.0

107.2
151.6
137.4
133.0

122.2
155.3
139.1
137.8

126.3
150.3
141.5
140.0

133.7
158.9
142.7
138.9

131.1
151.1
145.0
138.4

124.9
75.8
147.1
135.3

71.1
147.6

8.75
.67
2.68
3.31
3.21

149.2
119.8
136.8
128.6
151.0

149.5
116.2
137.1
128.6
145.7

149.0
113.9
133.6
127.2
146.2

148.9
119.6
132.5
121.5
143.6

148.3
117.4
132.6
123.8
147.1

148.6
119.1
133.0
126.7
152.3

149.4
123.1
133.8
127.5
153.0

150.5
125.1
135.0
128.0
154.4

150.7
118.8
133.9
125.1
156.8

150.0
122.9
133.8
125.9
157.2

151.5
123.1
135.5
124.0
156.7

152.2
117.3
134.0
123.6
156.9

135.1

15 Apparel products
16 Paper and products..................

20
21
22
23
26

156.2

156.7

17
18
19
20
21

Printing and publishing..........
Chemicals and products..........
Petroleum prooucts..................
Rubber ana plastic products..
Leather and products..............

27
28
29
30
31

4.72
7.74
1.79
2.24
.86

139.6
206.7
134.9
255.8
70.1

135.5
199.2
133.0
248.1
70.1

135.4
191.1
131.3
242.9
68.5

138.6
190.3
130.5
242.5
67.8

140.3
197.8
126.7
245.9
67.7

140.3
206.8
130.5
253.1
67.2

141.5
209.1
130.1
259.2
70.2

142.7
212.0
131.2
259.6
71.2

144.9
218.8
137.5
259.2
67.8

145.5
219.2
137.3
258.2
68.9

145.8
220.9
134.3
264.0
69.4

144.1
219.3
131.4
266.9
69.1

142.7
220.5
130.2
272.7
67.5

143.1

Durable manufactures
22 Ordnance, private and
governm ent......................
23 Lumber and products..............
24 Furniture and fix tu res............
25 Clay, glass, stone products . . .

19.91
24
25
32

3.64
1.64
1.37
2.74

77.9
119.3
150.0
146.5

77.9
104.5
149.5
140.8

77.5
109.7
143.1
134.5

77.1
112.8
138.6
134.2

77.2
121.7
141.1
135.7

77.1
122.6
144.8
141.4

79.1
122.2
147.2
145.2

79.6
124.9
147.2
147.8

79.5
122.0
149.0
151.4

78.9
126.3
150.5
154.9

78.6
126.3
153.0
154.8

78.3
125.4
153.0
152.9

78.8
125.0
155.5
151.3

79.8

26
27
28
29
30

Primary metals..........................
Iron and steel........................
Fabricated metal products----Nonelectrical m achinery ........
Electrical machinery................

33
331.2
34
35
36

6.57
4.21
5.93
9.15
8.05

101.6
91.7
135.0
162.8
172.7

96.1
84.4
133.2
162.1
171.4

90.4
75.4
126.1
158.3
166.6

81.7
68.1
123.8
158.5
165.0

86.0
75.3
125.8
158.8
166.7

90.1
79.8
129.0
159.1
167.5

100.6
93.3
132.8
161.1
170.0

113.4
107.4
134.1
163.4
173.0

112.1
103.5
137.4
167.5
174.9

113.9
108.0
137.6
168.9
177.9

114.2
107.8
139.1
169.1
174.6

114.0
106.3
141.3
170.7
177.1

112.3
104.8
141.6
171.9
178.4

142.1
172.7
179.6

31 Transportation equipm ent----32
Motor vehicles and p arts. . .
33 Aerospace and miscella­
neous transportation
equipment......................
34 Instrum ents..............................
35 Miscellaneous manufactures ..

37
371

9.27
4.50

116.8
118.8

109.8
105.9

110.0
106.7

110.7
107.9

108.3
104.4

112.9
113.4

118.8
124.2

121.7
129.0

120.6
126.3

117.3
119.2

114.9
117.5

119.3
127.4

120.4
129.8

123.5
135.8

372-9
38
39

4.77
2.11
1.51

114.9
171.0
147.8

113.5
171.0
147.3

113.1
169.2
43.7

113.4
167.5
144.7

111.9
167.6
144.2

112.3
167.4
142.8

113.6
169.6
145.0

114.8
169.9
147.5

115.2
172.1
149.5

115.5
174.0
151.8

112.5
171.3
153.6

111.7
169.9
154.9

111.6
170.2
157.5

112.0
170.7
156.5

Mining
8 M etal..........................................
9 C oal............................................
10 Oil and gas ex tractio n ............
Nondurable manufactures

153.0

128.6

111.0

Gross value (billions of 1972 dollars, annual rates)
Major Market
36 Products, to ta l..........................

507.4

602.1

588.6

585.0

586.7

585.9

593.3

604.7

610.9

615.5

614.0

612.0

617.4

617.6

621.7

37 F in a l..........................................
38 Consumer g oods..................
39
Equipm ent............................
40 Intermediate..............................

390.9
277.5
113.4
116.6

465.4
313.5
151.9
136.7

457.3
306.3
151.0
131.3

455.6
305.8
149.8
129.4

456.9
307.7
149.2
129.9

453.0
305.1
147.9
132.9

458.0
309.0
149.0
135.3

467.7
316.6
151.1
137.1

473.0
320.0
153.0
137.9

475.5
320.3
155.2
140.0

472.6
317.2
155.4
141.5

470.4
316.5
154.0
141.5

476.4
320.2
156.2
140.9

477.6
321.1
156.5
140.0

482.4
324.0
158.3
139.3

N ote. Published groupings include some series and subtotals not shown sepa­
rately. For description and historical data, see Industrial Production—1976 Revision
(Board of Governors of the Federal Reserve System: Washington, D .C.), Decem­
ber 1977.




A48
2.14

Domestic Nonfinancial Statistics □ June 1981
HOUSING A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1980
Item

1978

1979

1981

1980
Sept.

Oct.

Nov.

Dec.

Jan.

F e b .'

M ar.'

Apr.

Private residential real estate activity (thousands of units)
N ew U nits
1 Permits authorized....................................
2
1-family....................................................
3 2-or-more-family....................................

1,801
1,183
618

1,552
981
571r

1,191'
710'
481'

1,518'
884'
634'

1,351'
820'
531'

1,366'
809'
557'

1,249'
753'
496'

1,214'
715'
499'

1,165
667
488

1,153
678
475

1,185
691
494

4 Started..........................................................
5
1-family....................................................
6 2-or-more-family....................................

2,020
1,433
587

1,745
1,194
551

1,292
852
440

1,482
1,032
450

1,519
1,009
510

1,550
1,019
531

1,535
974
561

1,660
993
667

1,215
791
424

1,289
833
456

1,343
889
454

7 Under construction, end of period1........
8
1-family....................................................
9 2-or-more-family....................................

1,310
765
546

1,140
639
501

896'
515
382'

864
495
369

886
514
372

905
529
376

915
535
380

940'
544
396'

941
541
400

928
535
393

10 C om pleted..................................................
11
1-family....................................................
12 2-or-more-family....................................

1,868
1,369
499

1,855
1,286
570

1,502'
957'
545

1,254
763
491

1,287
823
464

1,274
819
455

1,373
895
478

1,252'
903'
349'

1,375
961
414

1,362
868
494

13 Mobile homes shipped..............................

276

277

222

239

236

239

261

233

256

255

818
419

709
402

530
340'

563
335

549
334

560
337

514
336

523'
329'

503
335

510
326

441
329

55.8

62.7

64.9

68.5

66.1

67.1

67.2

67.9'

65.9

67.3

69.3

62.7

71.9

76.6

80.3

77.7

82.2

81.5

80.2'

79.6

80.8

84.0

3,863

3,701

2,881

3,280

3,120

2,960

2,910

2,580

2,560

2,490

2,640

48.7
55.1

55.5
64.0

62.1
72.7

64.2
75.5

62.7
73.4

64.3
74.9

63.0
74.0

64.5
76.1

64.1
75.7

64.4
76.2

65.3
77.6

14
15
16
17

Merchant builder activity in 1-family
units
Number s o ld ..............................................
Number for sale, end of period1 ............
Price (thousands o f dollars)2
Median
Units sold................................................
Average
Units sold................................................

n. a.

E xisting U nits (1-family)
18 Number s o ld ..............................................
Price of units sold (thous. of dollars)2
19 M edian........................................................
20 A v erag e......................................................

Value of new construction3 (millions of dollars)
C onstruction
21 Total put in p la c e ......................................

205,457

228,948

228,705

223,660

228,831

235,784

247,403

261,916

253,941

251,542

244,632

22 Private..........................................................
23
Residential..............................................
24 Nonresidential, total..............................
Buildings
25
In d u strial........................................
26
Comm ercial....................................
27
O ther................................................
28
Public utilities and o th e r..................

159,555
93,423
66,132

179,948
99,029
80,919

173,578
86,903
86,675

167,882
84,378
83,504

173,833
89,207
84,626

182,182
97,007
85,175

189,153
100,216
88,937

196,400
103,154
93,246

193,374
100,603
92,771

191,223
97,376
93,847

190,443
97,014
93,429

10,993
18,568
6,739
29,832

14,953
24,924
7,427
33,615

14,021
29,344
8,533
34,777

13,102
27,425
8,447
34,530

12,996
28,417
8,760
34,453

13,392
28,888
8,799
34,096

15,079
30,392
9,086
34,380

15,127
33,605
9,931
34,583

15,239
33,071
9,640
34,821

15,652
33,100
9,728
35,367

15,391
33,244
9,148
35,646

29 P u b lic ..........................................................
30 M ilitary....................................................
31
H ighw ay..................................................
32 Conservation and developm ent..........
33 O ther........................................................

45,901
1,501
10,713
4,457
29,230

49,001
1,641
11,915
4,586
30,859

55,128
1,853
13,473
5,083
34,719

55,778
1,717
13,804
5,091
35,166

54,998
2,069
13,550
4,763
34,616

53,602
1,765
12,427
5,109
34,301

58,250
1,705
13,742
5,626
37,177

65,516
2,063
19,882
6,242
37,329

60,567
1,980
17,812
6,197
34,578

60,318
1,967
15,515
6,018
36,818

54,189
2,149
14,144
5,688
32,208

1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly comparable
with data in prior periods due to changes by the Bureau of the Census in its
estimating techniques. For a description of these changes see Construction Reports
(C-30-76-5), issued by the Bureau in July 1976.




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 ana
current figures are available from originating agency. Permit authorizations are
those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978.

Prices

A 49

2.15 CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
12 months to

3 months (at annual rate) to
1980

Item
1980
Apr.

1 month to

1981

1980

Mar.

Dec.

Index
level
Apr.
1981
(1967
=100)1

1981

1981
Apr.
June

Sept.

Dec.

Jan.

Feb.

Mar.

Apr.

C onsumer P rices2
1 All item s........................................

14.7

10.0

11.4

7.8

13.2

9.6

1.0

.7

1.0

.6

.4

266.8

2 Com m odities................................
3 Food ..........................................
4 Commodities less food ............
5
Durable..................................
6
N ondurable..........................
7 Services..........................................
8 Rent............................................
9 Services less re n t......................

13.1
7.2
15.7
9.5
23.7
16.9
8.7
18.1

9.1
9.6
8.9
7.9
10.0
11.3
9.2
11.7

5.4
5.8
5.2
7.5
3.8
20.5
10.0
22.1

13.2
19.7
10.6
15.2
5.0
.7
8.6
-.3

11.0
13.1
9.9
11.8
6.2
16.8
9.6
17.8

8.6
2.1
12.3
- .7
29.8
10.3
7.0
10.9

.7
1.0
.6
.4
.7
1.4
.7
1.5

.6
- .1
1.0
.3
2.1
.9
.7
.9

1.1
.3
1.4
- .3
3.2
.8
.5
.9

.5
.4
.5
-.1
1.3
.8
.5
.8

.0
.0
.0
.3
- .2
1.0
.6
1.0

250.8
272.9
238.0
221.1
258.1
295.4
204.2
312.8

Other groupings
10 All items less f o o d ......................
11 All items less food and energy..
12 H om eow nership..........................

16.3
13.0
22.2

10.1
9.5
10.3

12.7
14.0
26.4

5.7
5.8
- 3 .5

13.2
14.4
23.1

11.7
5.8
3.1

1.0
1.1
1.5

1.0
.6
.5

1.1
.4
0

.7
.4
.3

.5
.6
.7

264.2
250.1
339.3

13.7
14.7
1.2
22.0
10.5
17.8

10.6
10.6
9.3
11.1
10.3
10.7

8.4
7.6
- 1 .4
12.2
10.9
6.2

13.5
14.5
31.0
7.5
9.9
7.8

8.3
7.4
4.3
8.9
11.8
12.9

12.0
12.1
.3
17.4
11.5
13.2

.4
.3
0.0
.4
.4
1.6

1.0'
.9 '
.1 '
1.2'
1.1'
1.4'

.6 '
.6 '
- .8 '
1.2'
.9 '
.4 '

1.3
1.4
.8
1.6
.7
1.3

.8
.8
.0
1.1
.9
1.1

267.7
269.6
251.5
275.1
260.5
309.0

23.9
-6 .9

24.3
11.7

.2
- .3

32.3
73.9

27.5
- 4 .0

35.7
-23 .1

1.8
- 2 .6

2 .0 '
-1 .1

6 .3 '
- 3 .3

- .4
- 2 .0

1.4
1.5

488.8
263.4

P roducer P rices
13 Finished goods..............................
14 Consumer..................................
15
Foods......................................
16
Excluding foods....................
17 Capital equipment....................
18 Intermediate materials3 ..............
Crude materials
19 N onfood....................................
20 Food ..........................................

1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers.




3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
Source . Bureau of Labor Statistics.

A 50
2.16

Domestic Nonfinancial Statistics □ June 1981
GROSS N A TIO NAL PRO DUC T A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1980
Account

1978

1979

1981

1980
Ql

Q2

Q3

Q4

Q l'

G ross N ational P roduct
1 T o ta l..........................................................................................................

2,156.1

2,413.9

2,626.1

2,571.7

2,564.8

2,637.3

2,730.6

2,853.8

By source
Personal consumption expenditures......................................................
Durable goods......................................................................................
Nondurable goods................................................................................
Services..................................................................................................

1,348.7
199.3
529.8
619.6

1,510.9
212.3
602.2
696.3

1,672.8
211.9
675.7
785.2

1,631.0
220.9
661.1
749.0

1,626.8
194.4
664.0
768.4

1,682.2
208.8
674.2
799.2

1,751.0
223.3
703.5
824.2

1,805.8
237.3
752.2
843.4

6 Gross private domestic investm ent......................................................
7 Fixed investment..................................................................................
8
Nonresidential..................................................................................
9
Structures......................................................................................
10
Producers’ durable eq u ip m en t..................................................
11
Residential structures......................................................................
12
N onfarm ........................................................................................

375.3
353.2
242.0
78.7
163.3
111.2
106.9

415.8
398.3
279.7
96.3
183.4
118.6
113.9

395.3
401.2
296.0
108.8
187.1
105.3
100.3

415.6
413.1
297.8
108.2
189.7
115.2
110.1

390.9
383.5
289.8
108.4
181.4
93.6
88.9

377.1
393.2
294.0
107.3
186.8
99.2
94.5

397.7
415.1
302.1
111.5
190.7
113.0
107.6

435.4
432.8
316.1
116.7
199.4
116.7
111.3

Change in business inventories..........................................................
N onfarm ............................................................................................

22.2
21.8

17.5
13.4

-5 .9
-4 .7

2.5
1.5

7.4
6.1

-1 6 .0
-1 2 .3

-1 7 .4
-1 4 .0

2.6
5.0

15 Net exports of goods and services........................................................
16 E xports..................................................................................................
17 Im ports..................................................................................................

-0 .6
219.8
220.4

13.4
281.3
267.9

23.3
339.8
316.5

8.2
337.3
329.1

17.1
333.3
316.2

44.5
342.4
297.9

23.3
346.1
322.7

37.0
376.8
339.8

18 Government purchases of goods and services....................................
19 F e d e ra l..................................................................................................
20
State and local......................................................................................

432.6
153.4
279.2

473.8
167.9
305.9

534.7
198.9
335.8

516.8
190.0
326.8

530.0
198.7
331.3

533.5
194.9
338.6

558.6
212.0
346.6

575.5
221.5
354.1

By major type of product
21 Final sales, to t a l......................................................................................
22
G o o d s....................................................................................................
23
D urable..............................................................................................
24
N on d u rab le......................................................................................
25
Services..................................................................................................
26 Structures..............................................................................................

2,133.9
946.6
409.8
536.8
976.3
233.2

2,396.4
1,055.9
451.2
604.7
1,097.2
260.8

2,632.0
1,130.4
458.6
671.9
1,229.6
266.0

2,569.1
1,116.9
456.4
660.5
1,178.6
276.2

2,557.4
1,106.4
444.6
661.8
1,205.6
252.8

2,653.4
1,129.4
456.5
672.9
1,249.0
258.9

2,748.0
1,169.0
476.7
692.2
1,285.3
276.4

2,851.2
1,249.9
502.7
747.3
1,316.7
287.1

27 Change in business inventories..............................................................
28 Durable goods......................................................................................
29 Nondurable goods................................................................................

22.2
17.8
4.4

17.5
11.5
6.0

- 5 .9
-4 .0
-1 .8

2.5
-1 1 .8
14.3

7.4
3.3
4.1

-1 6 .0
- 8 .4
- 7 .7

-1 7 .4
.7
-1 8 .1

2.6
- 4 .6
7.2

30 M emo : Total GNP in 1972 dollars........................................................

1,436.9

1,483.0

1,480.7

1,501.9

1,463.3

1,471.9

1,485.6

1,516.0

31 T o ta l..........................................................................................................

1,745.4

1,963*3

2,121.4

2,088.5

2,070.0

2,122.4

2,204.8

2,289.3

32 Compensation of employees..................................................................
33 Wages and salaries..............................................................................
34
Government and government enterprises....................................
35
O ther..................................................................................................
36 Supplement to wages and salaries....................................................
37
Employer contributions for social insurance..............................
38
O ther labor in c o m e ........................................................................

1,299.7
1,105.4
219.6
885.7
194.3
92.1
102.2

1,460.9
1,235.9
235.9
1,000.0
225.0
106.4
118.6

1,596.5
1,343.6
253.6
1,090.0
252.9
115.8
137.1

1,558.0
1,314.5
243.3
1,067.9
243.5
112.6
130.9

1,569.0
1,320.4
250.5
1,069.9
248.6
113.6
135.1

1,597.4
1,342.3
253.9
1,088.4
255.0
116.0
139.1

1,661.8
1,397.3
263.3
1,134.0
264.5
121.0
143.5

1,721.9
1,442.4
267.0
1,175.4
279.5
131.4
148.0

39 Proprietors’ income1................................................................................
40 Business and professional1 ................................................................
41
Farm1 ....................................................................................................

117.1
91.0
26.1

131.6
100.7
30.8

130.6
107.2
23.4

133.7
107.9
25.7

124.9
101.6
23.3

129.7
107.6
22.1

134.0
111.6
22.5

131.8
113.0
18.8

2
3
4
5

13
14

N ational I ncome

42 Rental income of persons2 ....................................................................

27.4

30.5

31.8

31.2

31.5

32.0

32.4

32.7

43 Corporate profits1....................................................................................
44
Profits before tax3................................................................................
45
Inventory valuation adjustm ent........................................................
6
Capital consumption ad ju stm en t......................................................

199.0
223.3
-2 4 .3
-1 3 .5

196.8
255.4
-4 2 .6
-1 5 .9

182.7
245.5
-4 5 .7
-1 7 .2

200.2
277.1
-6 1 .4
-1 5 .4

169.3
217.9
-3 1.1
-1 7 .6

177.9
237.6
-4 1 .7
-1 7 .9

183.3
249.5
-4 8 .4
-1 7 .8

202.6
258.7
-3 9 .2
-1 6 .9

47 Net in te re s t........................................................ .....................................

115.8

143.4

179.8

165.4

175.3

185.3

193.3

200.3

1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustments.




3. For after-tax profits, dividends, and the like, see table 1.49.

Source. Survey of Current Business (Department of Commerce).

N a tio n a l In co m e A c co u n ts

A 51

2.17 PERSONAL INCOME AND SAVING
Billions of currcnt dollars; quarterly data arc at seasonally adjusted annual rates. Exceptions noted.

Ql

Q2

Q3

Q4

Ql

Personal Income and S aving
Total personal income....................................................................................

1.721.8

2,088.2

2,114.5

2,182.1

2.256.2

2.318.7

Wage and salary disbursem ents................................................................
Commodity-producing industries..........................................................
M anufacturing.........................................................................................
Distributive in d u stries..............................................................................
Service in d u stries.......................................................................................
Government and government enterprises..........................................

1.105.2
389.1
299.2
270.5
226.1
219.4

1.236.1
437.9
333.4
303.0
259.2
236.1

1.343.7
465.4
350.7
328.9
295.7
253.6

1.314.7
461.7
347.9
322.6
283.6
246.8

1.320.4
456.0
343.2
323.2
290.8
250.5

1.341.8
460.1
346.7
329.2
298.7
253.9

1.397.8
484.0
364.0
340.6
310.0
263.3

1.442.4
501.2
377.3
351.7
322.5
267.0

Other labor in c o m e .......................................................................................
Proprietors' incom e1.......................................................................................
Business and professional1 .....................................................................
Farm1 .............................................................................................................
Rental income of persons2 .........................................................................
D ividends..........................................................................................................
Personal interest in c o m e ..............................................................................
Transfer p a y m e n ts.........................................................................................
Old-age survivors, disability, and health insurance b e n e fits.. . .

102.2

118.6
131.6

137.1
130.6
107.2
23.4
31.8
54.4
256.3
294.2
153.8

130.9
133.7
107.9
25.7
31.2
52.4
239.9
271.7
142.0

135.1
124.9

101.6

139.1
129.7
107.6

111.6

143.5
134.0

23.3
31.5
54.2
253.6
280.7
144.7

32.0
55.1
261.8
310.7
163.2

22.5
32.4
56.1
269.7
313.9
165.3

148.0
131.8
113.0
18.8
32.7
58.0
288.3
319.7
169.8

117.2
91.0
26.1
27.4
43.1
173.2
223.3
116.2

100.8
30.8
30.5
48.6
209.6
249.4
131.8

Less: Personal contributions for social insurance...........................

69.6

80.6

87.9

86.2

85.9

E quals : Personal in co m e...........................................................................

1.721.8

1.943.8

2.160.2

2.088.2

2.114.5

22.1

88.1
2.182.1

91.2
2.256.2

102.2
2.318.7

Less: Personal tax and nontax p aym en ts..........................................

258.8

302.0

338.5

323.1

330.3

341.5

359.2

371.9

E quals : Disposable personal incom e.....................................................

1.462.9

1.641.7

1.821.7

1.765.1

1.784.1

1.840.6

1.897.0

1.946.9

1.674.1

L ess : Personal o u tla y s..............................................................................

1.386.6

1.555.5

1.720.4

1.678.7

E quals : Personal savin g..............................................................................

76.3

86.2

101.3

86.4

M emo :
Per capita (1972 dollars)
Gross national product..............................................................................
Personal consumption expenditures.....................................................
Disposable personal in c o m e ...................................................................
Saving rate (p e rc e n t)....................................................................................

6.568
4.136
4.487
5.2

6.721
4.219
4.584
5.2

6.646
4.196
4.571
5.6

6.768
4.251
4.600
4.9

Gross saving......................................................................................................

355.2

412.0

401.9

404.5

Gross private savin g.......................................................................................
Personal sa v in g ...............................................................................................
Undistributed corporate profits1 ..............................................................
Corporate inventory valuation adjustm ent............................................

355.4
76.3
57.9
- 2 4 .3

398.9
59.1
- 4 2 .6

432.9
101.3
44.3
-4 5 .7

413.0
86.4
52.1
- 6 1 .4

Capital consumption allowances
Corporate...........................................................................................................
Noncorporate....................................................................................................
Wage accruals less disbursem ents............................................................

136.4
84.8

155.4
98.2

175.4

167.1
107.4

.0

.0

.0

-3 2 .1
- 6 1 .2
29.1

1.7
- 3 6 .3
26.6

1.729.2

1.799.4

1.854.7

110.0

111.4

97.6

92.2

6.580
4.134
4.532

6.597
4.172
4.565

6.1

6.641
4,232
4.585
5.1

6.762
4.274
4,609
4.7

394.5

402.0

406.7

446.0

435.9
42.1
-3 1 .1

446.5
111.4
42.8
- 4 1 .7

436.4
97.6
40.4
- 4 8 .4

451.3
92.2
52.6
- 3 9 .2

173.0
110.7

178.4
113.4

183.2
115.8
- .5

187.5
119.0

- 3 0 .8
- 6 7 .9
37.1

-6 .4
- 4 4 .4
37.9

6.2

G ross S aving

Government surplus, or deficit ( - ) , national income and product
a cco u n ts....................................................................................................
F ed era l..........................................................................................................
State and local.............................................................................................

.0

-0.2
- 2 9 .2
29.0

86.2

11.9
- 14.8
26.7

111.8

110.0

.0

- 2 9 .6
- 6 6 .5
23.9

S

- 4 5 .6
- 7 4 .2
28.6

.0

Capital grants received by the United States, n et...............................

.0

1.1

1.1

1.1

1.1

1.1

1.2

Gross investm ent.............................................................................................

361.6

414.1

401.2

407.3

392.5

405.0

400.1

451.7

Gross private dom estic..................................................................................
Net foreign........................................................................................................

375.3
- 13.8

415.8
- 1.7

395.3
5.9

415.6
- 8 .3

390.9
1.7

377.1
27.8

397.7
2.3

435.4

1.1

42 Statistical discrepancy....................................................................................
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




Source. Survey of Current Business (Department of Commerce).

16.2

A 52
3.10

International Statistics □ June 1981
U .S. INTERNA TIO NA L TRANSACTIONS Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted.1
1979
Item credits or debits

1 Balance on current account........................................................
2
Not seasonally a d ju sted ..........................................................

1979

1978

1980

1980 p
Q4

Ql

Q2

Q4 p

Q3

-14,259

-7 0 5

118

-1,735
553

-2,621
-2,426

-2,441
-681

4,493
102

687
3,123

3
4
5
6
7
8

Merchandise trade balance2....................................................
Merchandise exports............................................................
Merchandise imports............................................................
Military transactions, n e t ........................................................
Investment income, net3..........................................................
Other service transactions, n e t ..............................................

-33,759
142,054
-175,813
886
20,899
2,769

-29,386
182,068
-211,454
-1,274
32,509
3,112

-27,354
221,781
-249,135
-3,309
32,534
5,206

-9,158
50,239
-59,397
-7 0 0
8,833
792

-10,848
54,604
-65,452
-9 2 2
10,062
899

-7,503
54,605
-62,108
-9 9 4
6,102
1,280

2,858
56,181
-59,039
-6 3 6
8,056
1,458

-6,145
56,391
-62,536
-7 5 8
8,316
1,570

9
10

Remittances, pensions, and other tra n sfers........................
U.S. government grants (excluding m ilitary)......................

-1 ,884
-3,171

-2,142
-3,524

-2,452
-4,506

-6 6 5
-8 8 7

-5 6 5
-1,247

-5 6 4
-7 6 2

-5 7 8
-9 4 9

-7 4 7
-1 ,5 4 9

11 Change in U.S. government assets, other than official re­
serve assets, net (increase, - ) ..........................................

-4,644

-3,783

-5,111

-9 2 5

-1,467

-1,191

-1 ,3 7 4

-1 ,0 7 9

12 Change in U.S. official reserve assets (increase, - ) ............
13 G old............................................................................................
14 Special drawing rights (S D R s ) ..............................................
15
Reserve position in International Monetary Fund..............
16 Foreign currencies....................................................................

732
-6 5
1,269
4,231
-4,683

-1,132
-6 5
-1,136
-1 8 9
257

-8,155
0
-1 6
-1,6 6 7
-6,472

-6 4 9
-6 5
0
27
-611

-3,2 6 8
0
-1,152
-3 4
-2,082

502
0
112
-9 9
489

-1,109
0
-261
-2 9 4
-5 5 4

-4 ,2 7 9
0
1,285
-1 ,2 4 0
-4 ,324

17 Change in U.S. private assets abroad (increase, - ) 3............
18 Bank-reported claim s..............................................................
19 Nonbank-reported claims........................................................
20 U.S. purchase of foreign securities, n e t ..............................
21
U.S. direct investments abroad, net3....................................

-57,279
-33,631
-3,853
-3,450
-16,345

-56,858
-25,868
-2,029
-4,643
-24,318

-71,236
-46,608
n.a.
-3,188
-20,592

-11,918
-7,213
410
-9 8 6
-4,129

-7,971
-2 7 4
-1 ,4 7 4
-7 6 5
-5,458

-25,019
-21,051
147
-1 ,2 4 6
-2,869

-16,652
-12,268
479
-8 0 5
-4,058

-21,409
-13,015
n.a.
-3 7 1
-8 ,2 0 7

23
24
25
26
27

22 Change in foreign official assets in the United States
(increase, + ) ........................................................................
U.S. Treasury securities..........................................................
Other U.S. government obligations......................................
Other U.S. government liabilities4........................................
O ther U.S. liabilities reported by U.S. b a n k s....................
O ther foreign official assets5 ..................................................

33,292
23,523
666
2,220
5,488
1,395

-14,270
-22,356
465
-7 1 4
7,219
1,116

16,179
9,640
2,187
1,375
-8 4
3,061

-1,221
-5,769
41
-9 2 4
4,881
550

-7,215
-5,357
801
181
-3,185
345

7,775
4,314
250
737
1,652
822

7,991
3,769
549
242
2,006
1,425

7,628
6,914
587
215
-5 5 7
469

28 Change in foreign private assets in the United States
(increase, + )3 ...................................... ................................
29
U.S. bank-reported liabilities................................................
U.S. nonbank-reported liabilities..........................................
30
31
Foreign private purchases of U.S. Treasury securities, net
32 Foreign purchases of other U.S. securities, n e t..................
33 Foreign direct investments in the United States, net3 ___

30,804
16,259
1,640
2,197
2,811
7,896

51,845
32,668
1,692
4,830
2,942
9,713

31,446
10,687
n.a.
2,693
7,443
8,204

5,246
400
1,050
920
313
2,563

14,409
6,355
683
3,278
2,427
1,666

174
-4,208
1,331
-1,225
1,194
3,082

3,772
194
405
-2 5 4
990
2,437

13,092
8,346
n.a.
894
2,832
1,020

0
11,354

1,139
23,765

1,152
35,605

0
11,202
2,400

1,152
6,981
-9 3

0
20,200
1,465

0
2,879
-4,032

0
5,544
2,658

11,354

23,765

35,605

8,802

7,074

18,735

6,911

2,886

34 Allocation of SD R s......................................................................
35 D iscrepancy..................................................................................
36 Owing to seasonal adjustm ents..............................................
37
Statistical discrepancy in recorded data before seasonal
ad ju stm en t........................................................................

38
39
40
41

M emo :
Changes in official assets
U.S. official reserve assets (increase, - ) ............................
Foreign official assets in the United States
(increase, + ) ....................................................................
Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 22
ab o v e )....................................................................................
Transfers under military grant programs (excluded from
lines 4, 6, and 10 a b o v e )....................................................

732

-1,132

-8,155

-6 4 9

-3,268

502

-1,109

-4 ,2 7 9

31,072

-13,556

14,804

-2 9 7

-7,396

7,038

7,749

7,415

-1,137

5,558

12,985

5,005

2,955

4,749

4,391

890

236

305

635

139

144

155

125

211

1. Seasonal factors are no longer calculated for lines 12 through 41.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing; military exports
are excluded from merchandise data and are included in line 6.
3. Includes reinvested earnings of incorporated affiliates.




4. Primarily associated with military sales contracts and other transactions 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 fromBureauof Economic Analysis, Surveyof Current Business
(U.S. Department of Commerce).

Trade and Reserve A ssets

A 53

3.11 U.S. FOREIGN TRADE
Millions of dollars; monthly data are seasonally adjusted.
1980
1980
Oct.
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipm ents........................................
GENERAL IMPORTS including mer­
chandise for immediate consump­
tion plus entries into bonded
warehouses........................................
3 Trade balance .

143,682

181,860

220,684

Dec.

Jan.

19,214

18,715

19,251

18,825

Feb.

Mar

19,764

21,434

Apr

19,818

174,759

209,458

245,010

20,347

19,860

21,436

23,194

21,922

20,949

22,289

-31,075

-27,598

-24,326

-1,134

-1,145

-2,185

-4 ,369

-2 ,1 5 8

485

-2,471

N ote . The data in this table are reported by the Bureau of Census data on a
free-alongside-ship (f.a.s.) value basis—that is, value at the port of export. Begin­
ning in 1981, foreign trade of the U.S. Virgin Islands is included in the Census
basis trade data; this adjustment has been made for all data shown in the table.
The Census basis data differ from merchandise trade data shown in table 3.10,
U.S. International Transactions Summary, for reasons of coverage and timing. On
the export side, the largest adjustments are: (a) the addition of exports to Canada
not covered in Census statistics, and (b) the exclusion of military sales (which are
combined with other military transactions and reported separately in the “service

3.12

Nov.

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”
(U.S. Department of Commerce, Bureau of the Census).

U.S. RESERVE ASSETS
Millions of dollars, end of period
1980
Type

1978

1979

1981

1980
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May p

1 Total1 ..........................................................

18,650

18,956

26,756

25,673

26,756

28,316

29,682

30,410

29,693

29,395

2 Gold stock, including Exchange Stabili­
zation Fund1 ......................................

11,671

11,172

11,160

11,162

11,160

11,159

11,156

11,154

11,154

11,154

3 Special drawing rights2-3 ..........................

1,558

2,724

2,610

3,954

2,610

3,628

3,633

3,913

3,712

3,652

4

Reserve position in International Mone­
tary Fund2 ..........................................

1,047

1,253

2,852

1,822

2,852

2,867

3,110

3,448

3,576

3,690

5 Foreign currencies4-5 ................................

4,374

3,807

10,134

8,735

10,134

10,662

11,783

11,895

11,251

10,899

1. Gold held under earmark at Federal Reserve Banks for foreign and inter­
national accounts is not included in the gold stock of the United States; see table
3.22.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through December 1980, 16 currencies were used; from January
1981, 5 currencies have been used. The U.S. SDR holdings and reserve position
in the IMF also are valued on this basis beginning July 1974.




3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus net transactions in SDRs.
4. Beginning November 1978, valued at current market exchange rates.
5. Includes U.S. government securities held under repurchase agreement against
receipt of foreign currencies, if any.

A 54
3.13

International Statistics □ June 1981
FOREIGN BRANCHES OF U.S. BANKS

Balance Sheet Data

M illions o f d o lla rs, e n d o f p e rio d
1980

Asset account

1977

1978'

1981

1979

Sept.

Oct.

Nov.

Dec.'

Jan.'

Feb.

Mar .p

All foreign countries
1 Total, all currencies..................................

258,897

306,795

364,233

385,884

383,356'

389,184'

397,233

395,156

399,143

408,362

2 Claims on United S ta te s..........................
3
Parent b a n k ............................................
4
O ther........................................................

11.623
7.806
3,817

17.340
12.811
4.529

32.302
25.929
6.373

29.341
19.685
9.656

30.476
21.440
9.036

30.617
22.254
8.363

28,459
20,202
8.257

29,517
20,658
8,859

31.995
21.442
10,553

30,441
18,967
11,474

5 Claims on foreigners..................................
6
Other branches of parent b a n k ..........
7
B a n k s .....................................................
8
Public borrowers2 ..................................
9
Nonbank foreigners .................................

238.848
55,772
91,883
14,634
76,560

278.135
70.338
103.111
23.737
80.949

317.175
79.661
123.413
26.072
88.029

339.204
73.856
139,902
26.740
98.706

335.623'
72.477'138.296'
26.548
98.302'

340.848'74.062'139.977'
26,935
99,874'

350.993
76.552
144.627
27,626
102.188

348.219
75.309
144.464
27.583
100,863

349.292
75,268
145.825
27.938
100,261

359,772
77,395
150,252
28,487
103,638

10 Other assets................................................

8,425

11.320

14.756

17.339

17.257'-

17.719'

17.781

17,420

17,856

18,149

11 Total payable in U.S. dollars....................

193,764

224,940

267,711

282,171

279,827'

284,401'

289,860

291,900

296,339

302,564

12 Claims on United S ta te s ..........................
13
Parent b a " k ............................................
14
O ther.......................................................

11,049
7,692
3,357

16.382
12.625
3.757

31.171
25.632
5.539

28.138
19.414
8.724

29.059
21.043
8.016

29.173
21,853
7.320

27.190
19.896
7.294

28,261
20,366
7.895

30.741
21.189
9.552

29,248
18,752
10,496

15 Claims on foreigners ......................................
16
Other branches of parent b a n k ..........
17
Banks ............................................................
18
Public borrowers2 ..................................
19
Nonbank foreigners..............................

178,896
44,256
70,786
12,632
51,222

203.498
55.408
78,686
19,567
49.837

229.118
61.525
96.261
21.629
49.703

245.588
56.603
111.878
22.305
54.802

242.152'
55.249'109.438'
22.578
54.887'-

246,363'
57.238'
110.799'
22.846
55.480'

253.451
58.273
115,984
23.398
55.796

254.113
58.553
116,677
23.190
56.693

255,704
57,700
118,181
23,479
56,344

263,235
59,648
121,169
23,976
58,442

20 Other assets................................................

3,820

5.060

7.422

8.445

8.616'

8,865'

9.219

9.526

9,894

10,081

United Kingdom
21 Total, all currencies ......................................

90,933

106,593

130,873

137,447

138,158

140,715

142,781

143,609

144,793

145,459

22 Claims on United S ta te s ..........................
23
Parent b a n k ............................................
24
O ther........................................................

4,341
3.518
823

5.370
4.448
922

11.117
9.338
1.779

8.022
5.788
2.234

8.216
5.969
2.247

8.771
6,552
2,219

7.508
5.275
2.233

7,727
5,278
2.449

9.211
6.471
2,740

9,413
6,405
3,008

25 Claims on foreigners..................................
26
Other branches of parent b a n k ...........
27
Banks ......................................................
28
Public borrowers2 ..................................
29
Nonbank foreigners..............................

84.016
22.017
39,899
2,206
19,895

98.137
27.830
45.013
4.522
20.772

115.123
34.291
51.343
4.919
24.570

123.369
30.858
57,066
6.251
29.194

123.854
31.431
56.723
6.113
29.587

125,859
32,267
57.423
6,405
29.764

129.232
34.538
57,658
6.684
30,352

130.174
35.136
58,489
6.620
29.929

129,646
35,406
58,554
6,626
29,060

129,992
34,583
58,714
6,929
29,766

30 Other assets .....................................................

2,576

3.086

4.633

6.056

6,088

6,085

6,041

5,708

5,936

6,054

31 Total payable in U.S. dollars....................

66,635

75,860

94,287

94,784

95,287

97,246

98,913

101,038

103,048

102,933

32 Claims on United S ta te s ..........................
33
Parent b a n k ............................................
34
O ther........................................................

4,100
3,431
669

5.113
4.386
727

10.746
9.297
1.994

7.656
5.744
1.912

7.647
5.817
1.830

8.233
6,410
1,823

7.115
5,229
1,886

7,304
5,221
2.083

8,765
6,418
2,347

9,001
6,381
2,620

35 Claims on foreigners......................................
36
Other branches of parent b a n k ...........
37
B a n k s ......................................................
38
Public borrowers2 ..................................
39
Nonbank foreigners..............................

61,408
18,947
28,530
1,669
12,263

69.416
22.838
31.482
3.317
11.779

81.294
28.928
36.760
3.319
12,287

84.355
24.913
40.917
4.663
13.862

84.849
25.593
40.312
4.551
14.393

86.246
26.710
40,542
4,706
14,288

88,950
28,231
41.373
4.909
14.437

90,682
28.768
42.887
4.816
14,211

91,204
28,946
42,751
4,930
14,577

90,696
28,132
42,609
5,168
14,787

40 Other assets .....................................................

1,126

1.331

2,247

2.773

2.791

2.767

2.848

3.052

3,079

3,236

Bahamas and Caymans
41 Total, all currencies..................................

79,052

91,735

108,977

123,179

119,524

119,367

123,837

123,460

124,809

127,801

42 Claims on United S ta te s..........................
43
Parent b a n k ............................................
44
O ther........................................................

5,782
3,051
2,731

9.635
6.429
3.206

19.124
15.196
3.928

18.305
11.839
6.466

19.656
13,837
5,819

18.325
13,071
5,254

17.751
12,631
5,120

18,370
12.842
5,528

19,150
12,417
6,733

17,547
10,216
7,331

45 Claims on foreigners..................................
46
Other branches of parent b a n k ...........
47
B a n k s ......................................................
48
Public borrowers2 ..................................
49
Nonbank foreigners..............................

71,671
11,120
27,939
9,109
23,503

79.774
12.904
33.677
11,514
21.679

86,718
9,689
43,189
12,905
20,935

100.905
14.724
52.749
12.078
21,354

95,959
13,076
49,900
12,441
20,542

96.800
13,118
50.626
12,213
20,843

101,926
13,315
54,888
12,577
21,146

100.792
12.956
54,252
12,558
21,026

101,199
11,998
55,280
12,605
21,316

105,771
13,803
57,065
12,579
22,324

50 Other assets................................................

1,599

2,326

3,135

3,969

3,909

4,242

4,160

4.298

4,460

4,483

51 Total payable in U.S. dollars....................

73,987

85,417

102,368

117,245

113,683

113,560

117,654

117,549

119,007

121,953

For notes seeopposite page.




Overseas Branches

A55

3.13 Continued
1980
Liability account

1977

19781

1981

1979
Sept.

Oct.

Nov.

D ec.'

J a n .'

Feb.

Mar.P

All foreign countries
52 Total, all currencies..................................

285,897

306,795

364,233

53 To United S tates........................................
54
Parent b a n k ............................................
55
Other banks in United S tates..............
56
N onbanks................................................

44,154
24,542
19,613

58,012
28,654
12,169
17,189

66,686
24,530
13,968
28,188

57 To foreigners..............................................
58
Other branches of parent b a n k ..........
59 Banks ......................................................
60
Official institutions................................
61
Nonbank foreigners..............................

206,579
53,244
94,140
28,110
31,085

238,912
67,496
97,711
31,936
41,769

283,344
77,601
122,849
35,664
47,230

385,884
84,068
38,456'
12,669'
32,943
287,810
70,689
131,022
33,086
53,013

383,356'

389,184'

397,233

395,156

399,143

408,362

84,161'
37,184'
12,872'
34,105

86,589'
36,956'
13,420'
36,213

90,942
39,135
14,473
37,289

92,186
38,478
13,590
40,118

90,524
36,212
13,988
40,324

97,671
42,977
14,372
40,322

285,366'
69,766'
132,195'
30,722'
52,673'

288,385'
71,554'
132,281'
31,145'
53,405'

291,780
73,938
130,654
32,440
54,748

288,797
72,729
132,517
28,870
54,681

294,811
73,434
134,531
28,529
58,317

296,501
74,986
133,593
29,819
58,103

62 Other liabilities..........................................

8,163

9,871

14,203

14,006

13,829'

14,210'

14,556

14,173

13,808

14,190

63 Total payable in U.S. dollars....................

198,572

230,810

273,819

289,163

287,318'

292,549'

300,988

302,443

306,832

313,413

64 To United S tates........................................
65
Parent b a n k ............................................
66 Other banks in United States..............
67
N onbanks................................................

42,881
24,213
18,669

55,811
27,519
11,915
16,377

64,530
23,403
13,771
27,356

81,255
35,419'
12,593'
33,243

83,764
35,233'
13,124'
35,407

88,123
37,496
14,203
36,424

89,640
36,903
13,416
39,321

88,164
34,794
13,757
39,613

95,321
41,527
14,235
39,559

68 To foreigners..............................................
69
Other branches of parent b a n k ..........
70
B a n k s ......................................................
71
Official institutions................................
72
Nonbank foreigners..............................

151,363
43,268
64,872
23,972
19,251

169,927
53,396
63,000
26,404
27,127

201,476
60,513
80,691
29,048
31,224

200,281
55,146
85,387
25,659
34,089

198,682'
53,780'
86,994'
23,373'
34,535'

200,937'
55,599'
86,556'
23,870'
34,912'

204,697
56,965
86,596
24,691
36,445

204,575
56,629
89,095
21,842
37,009

210,130
56,634
91,412
21,894
40,190

209,261
58,344
87,478
23,109
40,330

73 Other liabilities..........................................

4,328

5,072

7,813

7,757

7,848'

8,168

8,228

8,538

8,831

81,125
36,791 '
12,444'
31,890

7,381

United Kingdom
74 Total, all currencies..................................

90,933

106,593

130,873

137,447

138,158

140,715

142,781

143,609

144,793

145,459

75 To United States........................................
76 Parent b a n k ............................................
77
Other banks in United S tates..............
78
N onbanks................................................

7,753
1,451
6,302

9,730
1,887
4,189
3,654

20,986
3,104
7,693
10,189

19,343
2,951
5,361
11,031

19,157
2,712
5,800
10,645

20,594
3,198
5,732
11,664

21,735
4,176
5,716
11,843

23,226
4,228
5,436
13,562

22,783
3,190
5,869
13,724

24,376
4,242
5,519
14,615

79 To foreigners..............................................
80
Other branches of parent b a n k ..........
81
B a n k s ......................................................
82
Official institutions................................
83
Nonbank foreigners..............................

80,736
9,376
37,893
18,318
15,149

93,202
12,786
39,917
20,963
19,536

104,032
12,567
47,620
24,202
19,643

112,412
13,706
53,776
22,444
22,486

113,539
13,940
56,772
19,807
23,020

114,813
13,951
58,127
20,437
22,298

115,582
13,933
55,928
21,412
24,309

115,236
13,734
57,371
19,199
24,932

116,927
13,422
57,505
19,607
26,393

115,816
13,913
56,110
19,765
26,028

84 Other liabilities..........................................

2,445

3,661

5,855

5,692

5,462

5,308

5,464

5,147

5,083

5,267

85 Total payable in U.S. dollars....................

67,573

77,030

95,449

96,832

97,055

99,135

102,300

104,123

106,448

106,636

86 To United S tates........................................
87
Parent b a n k ............................................
88
Other banks in United States..............
89
N onbanks................................................

7,480
1,416
6,064

9,328
1,836
4,101
3,391

20,552
3,054
7,651
9,847

18,687
2,892
5,259
10,536

18,551
2,634
5,714
10,203

19,978
3,101
5,616
11,261

21,080
4,078
5,626
11,376

22,597
4,126
5,343
13,128

22,245
3,132
5,757
13,356

23,929
4,160
5,487
14,282

90 To foreigners..............................................
91
Other branches of parent b a n k ..........
92
B a n k s ......................................................
93
Official institutions................................
94 Nonbank foreigners..............................

58,977
7,505
25,608
15,482
10,382

66,216
9,635
25,287
17,091
14,203

72,397
8,446
29,424
20,192
14,335

75,422
9,588
32,891
18,046
14,897

76,114
9,891
35,495
15,338
15,390

76,696
9,770
35,998
15,989
14,939

78,512
9,600
35,177
17,024
16,711

78,768
9,591
36,463
14,941
17,773

81,100
9,184
37,014
15,420
19,482

79,501
9,297
34,553
15,738
19,913

95 Other liabilities..........................................

1,116

1,486

2,500

2,723

2,390

2,461

2,708

2,758

3,103

3,206

Bahamas and Caymans
96 Total, all currencies..................................

79,052

91,735

108,977

123,837

123,460

124,809

127,801

97 To United States........................................
98 Parent b a n k ............................................
99 Other banks in United S tates..............
100 N onbanks................................................

32,176
20,956
11,220

39,431
20,482
6,073
12,876

37,719
15,267
5,204
17,248

56,317
29,321'
6,109'
20,887

56,123
27,666'
5,957'
22,500

56,860
26,861'
6,528'
23,471

59,666
28,181
7,379
24,106

58,928
26,563
7,126
25,239

58,607
26,222
7,165
25,220

64,159
31,833
7,883
24,443

101 To foreigners..............................................
102 Other branches of parent b a n k ..........
103 Banks ......................................................
104 Official institutions................................
105 Nonbank foreigners..............................

45,292
12,816
24,717
3,000
4,759

50,447
16,094
23,104
4,208
7,041

68,598
20,875
33,631
4,866
9,226

63,966
17,079
32,185
4,250
10,452

60,593
16,720
29,202
4,610
10,061

59,492
15,878
28,933
4,368
10,313

61,218
17,040
29,895
4,361
9,922

61,597
17,819
30,050
4,204
9,524

63,323
18,781
30,289
3,663
10,590

60,737
17,370
28,602
4,403
10,362

123,179

119,524

119,367

106 Other liabilities..........................................

1,584

1,857

2,660

2,896

2,808

3,015

2,953

2,935

2,879

2,905

107 Total payable in U.S. dollars....................

74,463

87,014

103,460

118,576

115,166

115,121

119,657

119,214

120,714

123,785

1. In May 1978 the exemption level for branches required to report was increased,
which reduced the number of reporting branches.

2. In May 1978 a broader category of claims on foreign public borrowers, in-




eluding corporations that are majority owned by foreign governments, replaced
the previous, more narrowly defined claims on foreign official institutions.

A56
3.14

International Statistics □ June 1981
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1980
Item

1979

1978

Sept.
1 Total1................................................................................

4
5
6

By type
Liabilities reported by banks in the United States2 .
U.S. Treasury bills and certificates3 ..........................
U.S. Treasury bonds and notes
M arketable..................................................................
Nonmarketable4 ........................................................
U.S. securities other than U.S. Treasury securities5

7
8
9
10
11
12

By area
Western Europe1............................................................
Canada ............................................................................
Latin America and C arib b ean ....................................
A sia..................................................................................
A fric a ..............................................................................
Other countries6 ............................................................

2
3

Oct.

Nov.

Dec.

Jan.

Feb.

M ar.p

162,625

149,546

164,402

156,894

157,376

163,212

164,402

162,778

162,384

169,732

23,326
67,671

30,540
47,666

30,381
56,243

30,841
49,361

28,734
50,392

29,546
55,104

30,381
56,243

27,008
56,522

24,864
56,829

27,372
60,306

35,894
20,970
14,764

37,590
17,387
16,363

41,431
14,654
21,693

40,801
15,254
20,637

41,465
15,254
21,531

41,765
15,254
21,543

41,431
14,654
21,693

42,295
14,654
22,299

43,699
14,494
22,498

44,783
14,294
22,977

93,089
2,486
5,046
58,854
2,408
742

85,633
1,898
6,291
52,827
2,412
485

81,592
1,562
5,688
70,608
4,123
829

76,967
1,901
6,606
67,671
3,232
517

75,989
1,670
6,008
69,114
3,520
1,077

80,884
1,393
5,722
70,097
3,866
1,250

81,592
1,562
5,688
70,608
4,123
829

80,434
1,174
5,456
70,557
3,973
1,184

78,334
1,089
5,241
72,667
3,948
1,105

79,986
1,437
6,366
76,702
4,089
1,152

1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial
paper, negotiable time certificates of deposit, and borrowings under repurchase
agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes bonds
and notes payable in foreign currencies.

3.15

1981

1980

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.
N ote . Based on Treasury Department data and on data reported to the Treasury
Department by banks (including Federal Reserve Banks) and securities dealers in
the United States.

LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1980
Item

1977

1978

Mar.
1 Banks’ own liabilities............................................................
2 Banks’ own claims1................................................................
3
D eposits..............................................................................
4
Other claims........................................................................
5 Claims of banks’ domestic customers2 ..............................

925
2,356
941
1,415

1. Includes claims of banks’ domestic customers through March 1978.
2. Assets owned by customers of the reporting bank located in the United States
that represent claims on foreigners held by reporting banks for the accounts of
their domestic customers.




2,406
3,671
1,795
1,876
358

1981

1979

1,918
2,419
994
1,425
580

2,403'
2,772
1,212
1,560
1,058

June
2,739
2,874
1,090
1,784
798

Sept.
2,754
3,203
1,169
2,035
595

Dec.
3,748
4,206
2,507
1,699
962

Mar.P
3,268
4,238
1,697
2,542
444

Note . Data on claims exclude foreign currencies held by U.S. monetary authorities.

Bank-Reported Data
3.16 LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Millions of dollars, end of period

Reported by Banks in the United States

1980
Holder and type of liability

A 57

1977

1978

1981

1979
Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.P

126,168

166,842

187,521

191,149

196,030

204,792

205,295

202,359

201,195'

203,584

18,996
11,521

78,661
19,218
12,427
9,705
37,311

117,196
23,303
13.623
16,453
63,817

119,117
22,344
14,104
18,112
64,557

121,437
22,460
14,113
17,181
67,683

125,048
22,847
14,647
17,097
70,458

124,789
23,462
15,076
17,581
68,670

122,857
22,149
15,898
14,685
70,125

121,528'
23,300'
15,778'
13,476'
68,973r

120,293
21,318
16,272
15,948
66,755

48,906

88,181
68,202

70,325
48,573

73,032
50,731

74,594
51,990

79,743
56,484

80,506
57,595

79,501
57,673

79,668'
58,360'

83,291
62,073

17,472
2,507

19,396
2,356

19,783
2,517

20,002
2,601

20,624
2,635

20,079
2,832

19,050
2,778

18,350'
2,959

18,375
2,843

3,274

2,607

2,356

2,549

2,734

2,476

2,342

1,961

2,003

1,859

231
139

906
330
84
492

714
260
151
303

476
141
100
235

352
115
95
143

383
187
92
104

442
146
85
211

419
212
71
137

317
186
76
54

293
126
67
100

706

1,701
201

1,643
102

2,073
316

2,382
581

2,093
337

1,900
254

1,542
88

1,687
368

1,566
333

1,499
1

1,538
2

1,757
0

1,800
0

1,756
0

1,646
0

1,453
0

1,319
0

1,233
0

65,822

90,742

78,206

80,203

79,127

84,650

86,624

83,530

81,693'

87,678

3,528
1,797

12,165
3,390
2,560
6,215

18,292
4,671
3,050
10,571

18,466
4,229
3,576
10,661

16,101
3,406
3,355
9,341

16,842
3,553
3,588
9,700

17,826
3,771
3,612
10,443

15,222
3,869
3,343
8,010

13,938'
3,580'
2,997'
7,361

16,201
3,338
2,920
9,942

78,577
67,415

59,914
47,666

61,736
49,361

63,025
50,392

67,808
55,104

68,798
56,243

68,308
56,522

67,755'
56,829

71,477
60,306

10,992
170

12,196
52

12,312
63

12,577
55

12,648
56

12,501
54

11,756
30

10,894'
32

11,085
86

42,335

57,423

88,316

90,341

95,296

97,812

96,415

96,659

96,608'

93,065

10,933
2,040

52,626
15,315
11,257
1,429
2,629

83,299
19,482
13,285
1,667
4,530

85,093
20,536
12,989
1,408
6,139

89,931
22,248
13,843
1,718
6,686

91,932
21,474
13,714
1,782
5,978

90,456
21,786
14,188
1,703
5,895

90,594
20,469
12,889
1,857
5,723

90,319'
21,346'
14,287'
1,813'
5,245'

86,693
19,938
12,595
2,324
5,019

Own foreign offices3........................................

37,311

63,817

64,557

67,683

70,458

68,670

70,125

68,973'

66,755

36 Banks’ custody liabilities4 ..................................
37 U.S. Treasury bills and certificates..............
38
Other negotiable and readily transferable
instruments6 ..............................................
39 O ther..................................................................

4,797
300

5,017
422

5,248
361

5,365
515

5,880
529

5,959
623

6,065
631

6,289'
714'

6,372
826

2,425
2,072

2,415
2,179

2,533
2,354

2,417
2,434

2,883
2,467

2,748
2,588

2,856
2,578

2,850
2,726'

2,930
2,615

14,736

16,070

18,642

19,056

18,874

19,854

19,914

20,209

20,891'

20,982

4,304
7,546

12,964
4,242
8,353
368

14,891
5,087
8,755
1,048

15,081
4,986
9,020
1,076

15,052
5,096
8,945
1,011

15,892
5,393
9,184
1,315

16,065
5,356
9,676
1,033

16,623
5,179
10,628
815

16,955'
5,246
10,892'
816'

17,106
5,259
10,961
886

240

3,106
285

3,751
382

3,975
693

3,822
502

3,962
513

3,849
474

3,586
432

3,937
449'

3,876
607

2,557
264

3,247
123

3,181
100

3,208
112

3,337
112

3,185
190

2,985
170

3,287
201'

3,127
141

11,007

10,984

10,729

10,799

10,553

10,745

10,267

9,868

9,801

1 All foreigners......................................................
2 Banks’ own liabilities........................................
3 Demand deposits..............................................
4 Time deposits1..................................................
5
Other2 ................................................................
6
Own foreign offices3........................................
7 Banks’ custody liabilities4 ..................................
8
U.S. Treasury bills and certificates5 ............
9
Other negotiable and readily transferable
instruments6 ..............................................
10 O ther..................................................................
11 Nonmonetary international and regional
organizations7................................................
12 Banks’ own liabilities..........................................
13 Demand deposits..............................................
14 Time deposits1..................................................
15 Other2................................................................
16 Banks’ custody liabilities4 ..................................
17 U.S. Treasury bills and certificates..............
18 Other negotiable and readily transferable
instruments6 ..............................................
19 O ther..................................................................
20 Official institutions*............................................
21 Banks’ own liabilities..........................................
22
Demand deposits..............................................
23 Time deposits1..................................................
24
Other2................................................................
25 Banks’ custody liabilities4 ..................................
26 U.S. Treasury bills and certificates5 ............
27
Other negotiable and readily transferable
instruments6 ..............................................
28
O ther..................................................................
29 Banks9....................................................................
30 Banks’ own liabilities..........................................
31
Unaffiliated foreign banks..............................
32
Demand deposits..........................................
33
Time deposits1..............................................
34
Other2 ............................................................
35

40 Other foreigners..................................................
41 Banks’ own liabilities..........................................
42
Demand deposits..............................................
43 Time deposits....................................................
44 Other2 ................................................................
45 Banks’ custody liabilities4 ..................................
46
U.S. Treasury bills and certificates..............
47
Other negotiable and readily transferable
instruments6 ..............................................
48 O ther..................................................................
49 Memo : Negotiable time certificates of deposit
in custody for foreigners............................

47,820

141

1. Excludes negotiable time certificates of deposit, which are included in “Other
negotiable and readily transferable instruments.” Data for time deposits before
April 1978 represent short-term only.
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and foreign sub­
sidiaries consolidated in “Consolidated Report of Condition” filed with bank reg­
ulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign
banks: principally amounts due to head office or parent foreign bank, and foreign
branches, agencies or wholly owned subsidiaries of head office or parent foreign
bank.
4. Financial claims on residents of the United States, other than long-term se­
curities, held by or through reporting banks.




5. Includes nonmarketable certificates of indebtedness and Treasury bills issued
to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time cer­
tificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments and the Bank for
International Settlements.
9. Excludes central banks, which are included in “Official institutions.”

A58
3.16

International Statistics □ June 1981
Continued
1980
Area and country

1977

1978

1981

1979
Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.P

1 T o ta l................................................................................

126,168

166,842

187,521

192,149

196,030

204,792

205,295

202,359

201,195'

203,584

2 Foreign countries............................................................

122,893

164,235

185,164

189,600

193,296

202,315

202,953

200,398

199,192'

201,724

3 E u ro p e ............................................................................
4
A u stria ........................................................................
5
Belgium-Luxembourg................................................
6
Denmark......................................................................
7 F inland........................................................................
8
France ..........................................................................
9 Germany......................................................................
10 G reece..........................................................................
11
Italy..............................................................................
12 N etherlands................................................................
13 Norway........................................................................
14 P o rtu g al......................................................................
15 Spain............................................................................
16 Sweden ........................................................................
17 Switzerland..................................................................
18 Turkey..........................................................................
19 United K ingdom ........................................................
20
Y ugoslavia..................................................................
21
Other Western E urope1............................................
22 U.S.S.R........................................................................
23 Other Eastern Europe2 ............................................

60.295
318
2,531
770
323
5,269
7,239
603
6,857
2,869
944
273
619
2,712
12,343
130
14,125
232
1,804
98
236

85,172
513
2,550
1,946
346
9,214
17,283
826
7,739
2,402
1,271
330
870
3,121
18,225
157
14,272
254
3,440
82
330

90.952
413
2.375
1.092
398
10.433
12.935
635
7.782
2.337
1.267
557
1.259
2.005
17.954
120
24.700
266
4.070
52
302

83,513
432
3,696
528
311
12,332
7,854
591
5,969
2,540
1.074
571
1,321
1,826
13,524
237
22,830
169
7,275
39
392

83,970
460
3.322
493
307
11,654
7,557
643
6,796
2,555
1,381
491
1,520
1,813
13,695
171
23,791
203
6,865
33
220

90,682
511
3,696
586
363
12,374
9,168
711
7,308
2,783
1,444
437
1.379
1,807
16,574
257
24,439
225
6,140
64
416

90,897
523
4,019
497
455
12,125
9,973
670
7,572
2,441
1,344
374
1,500
1,737
16,689
242
22,680
681
6,939
68
370

89,701
554
4,062
420
264
12,168
10,336
524
6,743
2,568
899
370
1,416
1,365
16,631
203
24,209
296
6,225
46
401

89,181'
551
4,782'
432
355
12,521'
9,296'
563
5,987'
2,540'
1,037
358
1,388
2,078
16,636
231
24,325'
269
5,385
84
363'

91,419
522
4,728
463
332
12,972
12,280
593
3,456
2,324
1,575
356
1,631
2,406
16,854
235
24,715
202
5,377
47
352

24 Canada ............................................................................

4,607

6,969

7.379

10,337

10,039

9,856

10,031

9,802

9,131'

8,624

25 Latin America and C arib b ean ....................................
26 A rgentina....................................................................
27 Bahamas......................................................................
28 Berm uda......................................................................
29
Brazil............................................................................
30 British West Indies....................................................
31
C h ile ............................................................................
32
C olom bia....................................................................
33 C u b a ............................................................................
34
Ecuador ......................................................................
Guatemala3 ................................................................
35
36 Jamaica3 ......................................................................
37
M exico........................................................................
38
Netherlands Antilles..................................................
39
Panam a........................................................................
40
P eru..............................................................................
41
Uruguay ......................................................................
Venezuela....................................................................
42
43
Other Latin America and C arib b ean ....................

23,670
1,416
3,596
321
1,396
3,998
360
1,221
6
330
2,876
196
2,331
287
243
2,929
2,167

31,638
1,484
6,752
428
1,125
5,974
398
1,756
13
322
416
52
3,467
308
2,967
363
231
3,821
1,760

49.686
1.582
15.255
430
1.005
11.138
468
2.617
13
425
414
76
4.185
499
4.483
383
202
4.192
2.318

48,945
1.875
14,096
677
1,222
11,392
431
2,916
5
381
373
101
4,226
360
3,894
355
199
4,405
2,035

52,501
1,996
17,567
595
1,342
12,058
448
3,037
5
387
365
85
4,575
393
3,595
380
220
3,659
1,793

53,308
1,996
16,803
555
1,248
12,637
456
2,962
6
437
359
78
4,580
568
4,575
345
244
3,662
1,796

53,170
2,132
16,381
670
1,216
12,766
460
3,077
6
371
367
97
4,547
413
4,718
403
254
3,170
2,123

53,229
1,857
16,164
475
1,339
12,798
501
3,085
6
389
428
112
4,595
599
4,460
401
290
3,794
1,936

52,275'
1,998
15,916'
804
1,266
12,144
431
3,087
7
449
461
101
4,600'
523
3,984'
447
266
3,925
1,869

50,838
1,917
14,183
921
1,152
11,576
549
2,970
6
511
446
94
4,755
436
4,297
344
306
4,218
2,159

44 A sia..................................................................................
China
Mainland..................................................................
45
T a iw an ....................................................................
46
47
Hong Kong..................................................................
I n d ia ............................................................................
48
49
Indonesia....................................................................
50
Israel ............................................................................
51
Japan............................................................................
52
K o re a ..........................................................................
Philippines..................................................................
53
54 Thailand......................................................................
55
Middle-East oil-exporting countries4......................
56 Other A sia ..................................................................

30,488

36,492

33.005

42,009

41,056

41,999

42,420

41,649

42,721'

44,764

53
1,013
1,094
961
410
559
14,616
602
687
264
8,979
1,250

67
502
1,256
790
449
688
21,927
795
644
427
7,534
1,414

49
1.393
1.672
527
504
707
8.907
993
795
277
15.300
1.879

38
1,595
2,347
529
827
534
15,434
1,994
817
517
15,409
1,968

46
1,610
2,304
485
811
530
15,372
1,809
842
403
14,611
2,232

62
1,636
2,410
438
715
548
15,720
1,764
803
440
15,214
2,250

49
1,662
2,548
416
730
883
16,281
1,528
919
464
14,453
2,487

55
1,821
2,764
437
1,170
523
17,701
1,498
849
367
12,216
2,249

55
1,733
3,054
604
678
557
17,990'
1,485
1,057'
404
12,695
2,409

60
1,822
2,440
576
1,063
584
19,364
1,382
1,115
250
13,963
2,143

Egypt............................................................................
M orocco......................................................................
South Africa................................................................
Z a ire ............................................................................
Oil-exporting countries5............................................
Other A fric a ..............................................................

2,535
404
66
174
39
1,155
698

2,886
404
32
168
43
1,525
715

3.239
475
33
184
110
1.635
804

3,902
322
32
354
42
2,459
694

4,246
269
57
288
36
2,911
685

4,718
374
38
326
34
3,211
735

5,187
485
33
288
57
3,540
783

4,358
313
42
327
48
2,921
707

4,371
496
30
258
58
2,833
697

4,553
333
33
322
28
3,084
753

64 Other countries..............................................................
65
A ustralia......................................................................
All oth e r......................................................................
66

1,297
1,140
158

1,076
838
239

904
684
220

894
613
281

1,484
1,190
294

1,752
1,419
333

1,247
950
297

1,658
1,304
354

1,513
1,205
307

1,526
1,287
240

67 Nonmonetary international and regional
organizations..........................................................
In ternational..............................................................
Latin American regional..........................................
Other regional6 ..........................................................

3,274
2,752
278
245

2,607
1,485
808
314

2.356
1,238
806
313

2,549
1,389
837
323

2,734
1,586
841
307

2,476
1,366
801
309

2,342
1,156
890
296

1,961
913
769
279

2,003
995
745
263

1,859
754
768
338

57
58
59
60
61
62
63

68
69
70

1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem­
ocratic Republic, Hungary, Poland, and Romania.
3. Included in “Other Latin America and Caribbean” through March 1978.




4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Q atar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Asian, African, Middle Eastern, and European regional organizations, except
the Bank for International Settlements, which is included in “Other Western
Europe.”

Bank-Reported Data

A 59

3.17 BANKS’ OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1980
Area and country

1977

1978

1981

1979
Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

M ar.p

1 T o ta l................................................................................

90,206

115,545

133,943

161,548

163,189

167,525

172,702

167,338

167,825r

179,404

2 Foreign countries............................................................

90,163

115,488

133,906

161,510

163,144

167,487

172,624

167,266

167,746 r

179,330

3 E u ro p e ............................................................................
4
A u stria ........................................................................
5 Belgium-Luxembourg................................................
6 Denmark......................................................................
7 F inland........................................................................
8 F rance..........................................................................
9 Germany......................................................................
10 Greece..........................................................................
Italy..............................................................................
11
12 N etherlands................................................................
13 Norway........................................................................
14 P o rtu g al......................................................................
15 S pain............................................................................
16 Sw eden........................................................................
17 Switzerland..................................................................
18 Turkey..........................................................................
19 United K ingdom........................................................
20 Yugoslavia..................................................................
Other Western Europe1............................................
21
22 U.S.S.R........................................................................
23 Other Eastern Europe2 ............................................

18,114
65
561
173
172
2,082
644
206
1,334
338
162
175
722
218
564
360
8,964
311
86
413
566

24,201
140
1,200
254
305
3,735
845
164
1,523
677
299
171
1,120
537
1,283
300
10,147
363
122
360
657

28,388
284
1,339
147
202
3,322
1,179
154
1,631
514
276
330
1,051
542
1,165
149
13,795
611
175
268
1,254

29,667
264
1,954
180
184
3,232
1,018
221
2,560
546
248
330
1,106
716
1,337
144
13,015
682
245
241
1,444

29,306
196
1,680
132
253
2,551
987
278
2,842
557
335
341
1,113
763
1,564
123
12,981
684
226
257
1,443

32,654
250
1,946
165
248
3,506
1,506
265
3,063
749
138
393
1,111
633
1,932
149
13,995
689
234
271
1,413

32,155
236
1,621
127
460
2,958
948
256
3,364
575
227
331
993
783
1,446
145
14,917
853
179
281
1,457

30,657
249
1,739
129
322
2,716
985
264
3,168
642
294
299
1,131
688
1,753
146
13,175
863
347
249
1,490

30,768r
191
2,140
172
337
3,067'
1,028'
244'
3,105'
523
224
240
1,152'
733
1,729
155
12,949'
859
177
249
1,494

34,127
174
2,568
119
316
3,835
1,074
210
3,053
548
223
247
1,494
868
1,310
235
14,993
871
176
265
1,548

24 Canada ............................................................................

3,355

5,152

4,143

5,072

4,614

4,542

4,810

4,221

4,872'

5,071

25 Latin America and C arib b ean ....................................
26 A rgentina....................................................................
27 Baham as......................................................................
28 Berm uda......................................................................
29 Brazil............................................................................
30 British West Indies..................................................
31 C h ile .............. .............................................................
32 C olom bia....................................................................
33
C u b a ............................................................................
34 Ecuador ......................................................................
Guatemala3 ................................................................
35
36 Jamaica3 ......................................................................
37
M exico........................................................................
38 Netherlands Antilles..................................................
39 Panam a........................................................................
40
P eru..............................................................................
41
Uruguay ......................................................................
42
Venezuela....................................................................
Other Latin America and C arib b ean ....................
43

45,850
1,478
19,858
232
4,629
6,481
675
671
10
517
4,909
224
1,410
962
80
2,318
1,394

57,565
2,281
21,555
184
6,251
9,694
970
1,012
0
705
94
40
5,479
273
3,098
918
52
3,474
1,485

67,993
4,389
18,918
496
7,713
9,818
1,441
1,614
4
1,025
134
47
9,099
248
6,041
652
105
4,657
1,593

85,935
5,629
30,440
216
9,635
12,019
1,627
1,493
6
1,111
105
33
11,120
710
4,461
671
100
4,879
1,681

87,986
5,898
30,275
399
10,131
12,948
1,721
1,575
3
1,157
112
35
11,745
799
3,972
719
100
4,710
1,689

89,259
6,270
29,679
260
9,996
13,674
1,730
1,582
3
1,157
114
40
12,014
816
4,367
749
105
5,113
1,591

92,992
5,689
29,419
218
10,496
15,663
1,951
1,752
3
1,190
137
36
12,595
821
4,974
890
137
5,438
1,583

90,792
5,642
28,358
267
10,260
14,546
1,862
1,665
4
1,222
114
33
12,687
835
5,033
912
111
5,515
1,728

89,732'
5,636'
28,749'
364
9,801'
14,338'
1,843'
1,435
3
1,179
113
41
12,460'
655
4,964'
877
107
5,514
1,653

96,195
5,672
33,997
322
10,208
14,226
1,875
1,467
3
1,257
208
77
12,405
807
5,640
786
103
5,441
1,702

44

19,236

25,362

30,730

37,716

37,964

37,956

39,140

39,564

39,144'

40,632

China
Mainland..................................................................
T a iw a n ....................................................................
Hong Kong..................................................................
I n d ia ............................................................................
In donesia....................................................................
Israel............................................................................
Japan............................................................................
K o re a ........................................................ ..................
Philippines..................................................................
T hailand......................................................................
Middle East oil-exporting countries4......................
Other A sia ..................................................................

10
1,719
543
53
232
584
9,839
2,336
594
633
1,746
947

4
1,499
1,479
54
143
888
12,646
2,282
680
758
3,125
1,804

35
1,821
1,804
92
131
990
16,911
3,793
737
933
1,548
1,934

117
2,492
2,243
84
208
916
20,666
5,565
1,171
947
1,429
1,876

126
2,332
2,133
103
214
1,055
20,614
5,880
1,084
925
1,258
2,240

187
2,382
2,094
125
248
1,125
20,323
5,839
1,122
974
1,538
1,999

195
2,469
2,247
142
245
1,172
21,361
5,697
989
876
1,494
2,252

225
2,415
2,250
110
280
1,081
21,187
5,904
840
810
1,435
2,026

186
2,270'
2,212
142
306
829
22,345'
5,936
745
808
1,443
1,922'

201
2,401
2,330
127
288
944
23,710
5,830
605
835
1,486
1,874

57 A fric a ..............................................................................
58 Egypt............................................................................
59 M orocco......................................................................
60 South Africa................................................................
61
Z a ire ............................................................................
62 Oil-exporting countries5............................................
63 O ther............................................................................

2,518
119
43
1,066
98
510
682

2,221
107
82
860
164
452
556

1,797
114
103
445
144
391
600

2,029
123
166
535
101
374
729

2,090
159
119
440
123
469
780

1,933
165
146
375
98
402
747

2,377
151
223
370
94
805
734

1,910
175
186
337
96
410
707

1,981
152
115
421
94
425
773

2,271
137
153
534
111
589
746

64 Other cpuntries..............................................................
65 A ustralia......................................................................
66
All o th e r......................................................................

1,090
905
186

988
877
111

855
673
182

1,091
879
213

1,185
942
243

1,143
915
228

1,150
859
290

1,122
827
295

1,250
868
381

1,035
870
164

67 Nonmonetary international and regional
organizations6 ........................................................

43

56

36

39

44

38

78

72

79

74

45
46
47
48
49
50
51
52
53
54
55
56

1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem­
ocratic Republic, Hungary, Poland, and Romqjiia.
3. Included in “O ther Latin America and Caribbean” through March 1978.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Q atar, 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 “O ther
Western Europe.”
N ote. Data for period prior to April 1978 include claims of banks’ domestic
customers on foreigners.

A60

International Statistics □ June 1981

3.18 BANKS’ OWN AND DOMESTIC CUSTOMERS’ CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period
1980
Type of claim

1977

1978

1981

1979
Sept.

Oct

Nov.

Dec.

163,189
19,478
62,087
46,576
7,116
39,460
35,048

167,525
21,158
62,507
49,066
7,579
41,488
34,794

Jan.

Feb.

167,338
20,969
64,002
46,350
7,261
39,089
36,017

167,825''
20,320'
64,910r
45,905'
7,079'
38,826'
36,690'

Mar.

126,787

154,030

187,038

2
3
4
5
6
7
8

Banks’ own claims on foreigners..........................
Foreign public borrowers........................................
Own foreign offices1................................................
Unaffiliated foreign banks......................................
D eposits................................................................
O ther......................................................................
All other foreigners................................................

115,545
10,346
41,605
40,483
5,428
35,054
23,111

133,943
15,937
47,428
40,927
6,274
34,654
29,650

161,548
19,311
61,880
45,963
7,211
38,752
34,395

9
10
11
12

Claims of banks’ domestic customers2 ................
D eposits....................................................................
Negotiable and readily transferable instruments3
Outstanding collections and other claims4 ..........

11,243
480
5,396
5,366

20,088
955
13,100
6,032

25,490
1,081
15,260
9,148

26,106
885
15,574
9,648

31,052'
369'
19,930'
10,752'

15,030

18,021

23,433

22,714

24,452'

13,162

21,578

22,075

1 T o ta l..........................................................................

90,206

6,176

13 M emo: Customer liability on acceptances..........
Dollar deposits in banks abroad, reported by non­
banking business enterprises in the United
States5....................................................................

1. U.S. banks: includes amounts due from own foreign branches and foreign
subsidiaries consolidated in “Consolidated Report of Condition” filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign
banks: principally amounts due from head office or parent foreign bank, and foreign
branches, agencies, or wholly owned subsidiaries of head office or parent foreign
bank.
2. Assets owned by customers of the reporting bank located in the United States
that represent claims on foreigners held by reporting banks for the account of their
domestic customers.
3. Principally negotiable time certificates of deposit and bankers acceptances.

3.19

198,807

22,771'

24,631'

172,702
20,944
65,084
50,215
8,254
41,962
36,459

210,455 r

23,626'

28,304'

30,707'

179,404'
20,830'
74,569'
46,496'
7,263'
39,233'
37,509'

22,989

4. Data for March 1978 and for period prior to that are outstanding collections
only.
5. Includes demand and time deposits and negotiable and nonnegotiable certif­
icates of deposit denominated in U.S. dollars issued by banks abroad. For descrip­
tion of changes in data reported by nonbanks, see July 1979 B ulletin , p. 550.
N ote . 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
1978

1979

Dec.

Dec.

1980

1981

Maturity; by borrower and area
Mar.

June

Sept.

Dec.

Mar.P

1 T o ta l...............................................................................................................

73,635

86,181

85,452

93,260

99,022

106,857

104,789

By borrower
Maturity of 1 year or less1............................................................................
Foreign public borrowers..........................................................................
All other foreigners..................................................................................
Maturity pf over 1 year1 ..............................................................................
Foreign public borrowers..........................................................................
All other foreigners..................................................................................

58,345
4,633
53,712
15,289
5,395
9,894

65,152
7,233
57,919
21,030
8,371
12,659

64,109
6,812
57,297
21,343
8,593
12,750

71,938
7,227
64,711
21,322
8,673
12,649

76,231
8,935
67,296
22,791
9,722
13,069

82,665
10,036
72,628
24,193
10,152
14,041

80,855
10,519
70,336
23,934
10,158
13,775

15,169
2,670
20,895
17,545
1,4%
569

15,235
1,777
24,928
21,641
1,077
493

13,848
1,812
23,042
23,737
1,043
627

17,215
2,047
24,460
26,162
1,330
724

16,940
2,166
28,097
26,876
1,401
751

18,762
2,723
32,034
26,748
1,757
640

17,306
2,358
30,844
28,001
1,624
722

3,142
1,426
8,464
1,407
637
214

4,160
1,317
12,814
1,911
655
173

4,236
1,214
13,388
1,728
620
157

4,033
1,199
13,887
1,477
576
150

4,705
1,188
14,187
2,014
567
130

5,118
1,448
15,075
1,865
507
179

5,698
1,184
14,768
1,585
531
168

2
3
4
5
6
7

8
9
10
11
12
13
14
15
16
17
18
19

By area
Maturity of 1 year or less1
E u ro p e .......................................................................................................
C an a d a.......................................................................................................
Latin America and C arib b ean ................................................................
A sia.............................................................................................................
A fric a .........................................................................................................
All other2 ...................................................................................................
Maturity of over 1 year1
E u ro p e .......................................................................................................
Canada .......................................................................................................
Latin America and C arib b ean ................................................................
A sia.............................................................................................................
A fric a .........................................................................................................
All other2 ...................................................................................................

1. Remaining time to maturity.
2. Includes nonmonetary international and regional organizations.




Bank-Reported Data
3.20

A61

CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1
B illions o f d o lla rs, e n d o f p e rio d
1979
Area or country

1977

1980

1981

1978-2
Mar.

June

Sept.

Dec.

Mar.

June

Sept.

Dec.

Mar.

240.0

266.2

263.9

275.6

294.0

303.8

308.5

328.5

338.7

350.1

363.8

2 G-10 countries and Switzerland..........................................................
3 Belgium-Luxembourg........................................................................
4
France ..................................................................................................
5 Germany..............................................................................................
6
7 N etherlands........................................................................................
8 Sweden ................................................................................................
9 Switzerland..........................................................................................
10 United K ingdom ................................................................................
Canada ................................................................................................
11
12 Japan....................................................................................................

116.4
8.4
11.0
9.6
6.5
3.5
1.9
3.6
46.5
6.4
18.8

124.7
9.0
12.2
11.3
6.7
4.4
2.1
5.3
47.3
6.0
20.6

119.0
9.4
11.7
10.5
5.7
3.9
2.0
4.5
46.4
5.9
19.0

125.2
9.7
12.7
10.8
6.1
4.0
2.0
4.7
50.3
5.5
19.5

135.7
10.7
12.0
12.8
6.1
4.7
2.3
5.0
53.7
6.0
22.3

138.4
11.1
11.7
12.2
6.4
4.8
2.4
4.7
56.4
6.3
22.4

141.2
10.8
12.0
11.4
6.2
4.3
2.4
4.3
57.6
6.9
25.4

154.2
13.1
14.0
12.7
6.9
4.5
2.7
3.3
64.3
7.2
25.5

158.7
13.5
13.9
12.9
7.2
4.4
2.8
3.4
66.6
7.7
26.1

161.5
12.9
14.0
11.5
8.2
4.4
2.9
4.0
68.7
8.4
26.5

165.5
13.4
14.3
12.3
7.6
4.5
3.2
4.0
68.2
8.5
29.4

13 Other developed c o u n tries..................................................................
14 A u stria ................................................................................................
15 Denmark..............................................................................................
16 F inland................................................................................................
17 Greece..................................................................................................
18 N orway................................................................................................
19 P o rtu g al..............................................................................................
20 S pain....................................................................................................
21
Turkey..................................................................................................
22
Other Western E u ro p e ....................................................................
23
South Africa........................................................................................
24
A ustralia..............................................................................................

18.6
1.3
1.6
1.2
2.2
1.9
.6
3.6
1.5
.9
2.4
1.4

19.4
1.7
2.0
1.2
2.3
2.1
.6
3.5
1.5
1.3
2.0
1.4

18.2
1.7
2.0
1.2
2.3
2.1
.6
3.0
1.4
1.1
1.7
1.3

18.2
1.8
1.9
1.1
2.2
2.1
.5
3.0
1.4
.9
1.8
1.4

19.7
2.0
2.0
1.2
2.3
2.3
.7
3.3
1.4
1.5
1.7
1.3

19.9
2.0

l.S
1.4
1.4
1.3
1.3

18.8
1.7
2.1
1.1
2.4
2.4
.6
3.5
1.4
1.4
1.1
1.2

20.3
1.8
2.2
1.3
2.5
2.4
.6
3.9
1.4
1.6
1.5
1.2

20.6
1.8
2.2
1.2
2.6
2.4
.7
4.2
1.3
1.7
1.2
1.2

21.1
1.9
2.2
1.4
2.8
2.6
.6
4.0
1.5
1.7
1.1
1.3

23.0
1.8
2.4
1.3
2.8
2.8
.6
5.1
1.5
1.8
1.5
1.4

25 OPEC countries3....................................................................................
26 Ecuador ..............................................................................................
27
Venezuela............................................................................................
28
In donesia............................................................................................
29
Middle East co u n tries......................................................................
30 African countries................................................................................

17.6
1.1
5.5
2.2
6.9
1.9

22.7
1.6
7.2
2.0
9.5
2.5

22.6
1.5
7.2
1.9
9.4
2.6

22.7
1.6
7.6
1.9
9.0
2.6

23.4
1.6
7.9
1.9
9.2
2.8

22.9
1.7
8.7
1.9
8.0
2.6

21.8
1.8
7.9
1.9
7.8
2.5

20.9
1.8
7.9
1.9
6.9
2.5

21.3
1.9
8.5
1.9
6.6
2.4

22.8
2.1
9.1
1.8
6.9
2.8

21.4
2.0
8.3
2.0
6.4
2.6

31 Non-OPEC developing countries........................................................

48.7

52.6

53.9

56.0

58.9

62.9

63.7

67.4

72.8

76.9

80.5

Other Latin A m erica........................................................................

2.9
12.7
.9
1.3
11.9
1.9
2.6

3.0
14.9
1.6
1.4
10.8
1.7
3.6

3.1
14.9
1.7
1.5
10.9
1.6
3.5

3.5
15.1
1.8
1.5
10.7
1.4
3.3

4.1
15.1
2.2
1.7
11.4
1.4
3.6

5.0
15.2
2.5
2.2
12.0
1.5
3.7

5.5
15.0
2.5
2.1
12.1
1.3
3.6

5.6
15.3
2.7
2.2
13.6
1.4
3.6

7.6
15.8
3.2
2.4
14.4
1.5
3.9

7.9
16.2
3.5
2.6
15.9
1.8
3.9

8.5
16.7
4.0
2.4
17.0
1.8
4.8

39
40
41
42
43
44
45
46
47

Asia
China
Mainland..........................................................................................
T a iw a n ............................................................................................
In d ia ....................................................................................................
Israel ....................................................................................................
Korea (S o u th )....................................................................................
Malaysia4 ............................................................................................
Philippines..........................................................................................
Thailand..............................................................................................
Other A sia..........................................................................................

.0
3.1
.3
.9
3.9
.7
2.5
1.1
.4

.0
2.9
2
1.0
3.9
.6
2.8
1.2
' .2

.1
3.1
2
1.0
4.2
.6
3.2
1.2
.4

.1
3.3
.2
.9
5.0
.7
3.7
1.4
.4

.1
3.5
.2
1.0
5.3
.7
3.7
1.6
.4

.1
3.4
.2
1.3
5.4
.9
4.2
1.5
.5

.1
3.6
.2
.9
6.4
.8
4.4
1.4
.5

.1
3.8
.2
1.2
7.1
.9
4.6
1.5
.5

.1
1.1
7.3

.2
4.2
.3
1.5
7.1
1.0
5.0
1.4
.6

.2
4.4
.3
1.3
7.7
1.0
4.7
1.4
.4

48
49
50
51

Africa
Egypt....................................................................................................
M orocco..............................................................................................
Z a ire ....................................................................................................
Other Africa5......................................................................................

.3
.5
.3
.7

.4
.6
2
1.4

.5
.6
2
1.4

.7
.5
.2
1.5

.6
.5
.2
1.6

.6
.6
2
1.7

.7
.5
.2
1.7

.7
.5
.2
1.8

.7
.6
2
2.0

.8
.7
.2
2.0

.8
.6
.4
2.1

52 Eastern E urope......................................................................................
U .S.S.R...............................................................................................
53
54 Y ugoslavia..........................................................................................
55
O ther....................................................................................................

6.3
1.6
1.1
3.7

6.9
1.3
1.5
4.1

6.7
1.1
1.6
4.0

6.7
.9
1.7
4.1

7.2
.9
1.8
4.6

7.3
.7
1.8
4.8

7.3
.6
1.9
4.9

7.2
.5
2.1
4.5

7.3
.5
2.1
4.7

7.5
.4
2.3
4.7

8.0
.4
2.4
5.1

56 Offshore banking centers......................................................................
57
Bahamas..............................................................................................
58
B erm uda..............................................................................................
59 Cayman Islands and other British West Indies............................
60
Netherlands Antilles..........................................................................
61
Panama6 ..............................................................................................
Lebanon ..............................................................................................
62
63
Hong Kong..........................................................................................
64
Singapore............................................................................................
Others7 ................................................................................................
65

26.1
9.9
.6
3.7
.7
3.1
2
3.7
3.7
.5

31.0
10.4
.7
7.4
.8
3.0
.1
4.2
3.9
.5

33.7
12.3
.6
7.1
.8
3.5
.1
4.8
4.2
.4

37.0
14.4
.7
7.4
1.0
3.8
.1
4.9
4.2
.4

38.6
13.0
.7
9.5
1.1
3.4
.2
5.5
4.9
.4

40.4
13.7
.8
9.4
1.2
4.3
.2
6.0
4.5
.4

42.6
13.9
.6
11.3
.9
4.9
.2
5.7
4.7
.4

44.2
13.7
.6
9.8
1.2
5.6
.2
6.9
5.9
.4

44.5
13.1
.6
10.1
1.3
5.6
2
7.5
5.6
.4

46.5
13.3
.6
10.6
2.1
5.4
.2
8.1
5.9
.3

50.7
13.6
.7
11.3
2.1
6.4
.2
8.4
7.2
.9

66 Miscellaneous and unallocated8 ..........................................................

5.3

9.1

9.5

9.9

10.6

11.7

13.1

14.3

13.7

13.9

14.8

1

32
33
34
35
36
37
38

Latin America
A rgentina............................................................................................
Brazil....................................................................................................
C h ile ....................................................................................................
C olom bia............................................................................................
M exico................................................................................................

1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owHed banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are ad­
justed to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.13 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.17 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches). However,
see also footnote 2.
2. Beginning with data for June 1978. the claims of the U.S. offices
in this table include only banks' own claims payable in dollars. For earlier dates




1.2

L5

the claims of the U.S. offices also include customer claims and foreign currency
claims (amounting in June 1978 to $10 billion).
3. In addition to the Organization of Petroleum Exporting Countries shown
individually, this group includes other members of OPEC (Algeria, Gabon. Iran,
Iraq. Kuwait. Libya. Nigeria, Q atar. Saudi Arabia, and United Arab Emirates) as
well as Bahrain and Oman (not formally members of OPEC).
4. Foreign branch claims only through December 1976.
5. Excludes Liberia.
6. Includes Canal Zone beginning December 1979.
7. Foreign branch claims only.
8. Includes New Zealand, Liberia, and international and regional organizations.

A62

International Statistics □ June 1981

3.21 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions
Millions of dollars
1981
Country or area

1979

1980
Jan.Apr. p

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.P

Holdings (end of period)1
1 Estimated total2 ..........................................

51,344

57,418

56,558

57,222

57,418

58,453

60,277

61,995

62,364

2 Foreign countries2......................................

45,915

52,831

52,081

52,872

52,831

53,919

55,655

56,840

57,357

3 Europe2........................................................
4 Belgium-Luxembourg............................
5 Germany2 ................................................
6 N etherlands............................................
7 Sw eden....................................................
8 Switzerland2............................................
9
United Kingdom....................................
10 Other Western E u r o p e ........................
11 Eastern E urope......................................
12 C an a d a.............. .........................................

24,824
60
14,056
1,466
647
1,868
6,236
491
0
232

24,337
77
12,335
1,884
595
1,485
7,183
777
0
449

24,786
78
12,823
1,658
607
1,517
7,541
562
0
503

24,711
74
12,758
1,777
614
1,489
7,414
584
0
532

24,337
77
12,335
1,884
595
1,485
7,183
777
0
449

25,176
80
12,791
1,954
555
1,561
7,438
796
458

25,466
88
12,915
1,944
535
1,524
7,745
714
0
490

25,235
106
12,340
1,965
566
1,527
7,892
839
0
478

24,883
123
11,925
1,950
567
1,526
7,862
930
0
464

13
14
15
16
17
18
19
20

466
103
200
163
19,805
11,175
591
-3

999
292
285
421
26,112
9,479
920
14

768
292
255
221
25,333
9,503
685
5

942
292
278
372
25,968
9,547
715
4

999
292
285
421
26,112
9,479
920
14

998
292
281
425
26,303
9,519
970
14

1,074
292
341
441
27,467
9,543
1,139
18

1,151
292
339
519
28,827
9,543
1,140
9

939
292
389
258
29,925
9,566
1,140
7

21 Nonmonetary international and regional
organizations......................................

5,429

4,587

4,477

4,350

4,587

4,534

4,622

5,155

5,007

22
23

5,388
37

4,548
36

4,430
44

4,302
44

4,548
36

4,505
26

4,586
36

5,113
36

4,995
6

Latin America and C arib b ean ................
Venezuela................................................
Other Latin America and Caribbean .
Netherlands Antilles..............................
A sia..............................................................
Japan........................................................
A fric a ..........................................................
All oth e r......................................................

International..........................................
Latin American regional......................

Transactions (net purchases, or sales ( - ) during period)
24 Total2................................................................................

6,397

6,075

4,946'

681

664

196

1,035

1,827

1,715

369

25 Foreign countries2..........................................................
26 Official institutions....................................................
27 Other foreign2 ............................................................

6,099
1,697
4,403

6,916
3,840
3,076

4,526'
3,851'
675'

903
664
240

791
301
490

-4 1
-3 3 6
295

1,088
865
223

1,736
1,404
332

1,185
1,084
101

517
498
19

28 Nonmonetary international and regional
organizations..........................................................

301

-8 4 3

419'

-2 2 2

-1 2 6

237

-5 3

91

529

-1 4 8

Memo : Oil-exporting countries
29 Middle East3 ..................................................................
30 Africa4..............................................................................

-1,014
-1 0 0

7,762
328

3,829'
220

990
68

561
29

358
205

300
51

1,139
169

1,322
0

1,068
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, Q atar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.

1. Estimated official and private holdings of marketable U.S. Treasury securities
with an original maturity of more than 1 year. Data are based on a benchmark
survey of holdings as of Jan. 31, 1971, and monthly transactions reports. Excludes
nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign
countries.

3.22

FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
M illions of dollars, end of period
1980
Assets

1978

1979

1981

1980
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

MayP

1 D eposits..........................................................................

367

429

411

368

411

573

422

474

475

346

Assets held in custody
2 U.S. Treasury securities1..............................................
3 Earmarked gold2............................................................

117,126
15,463

95,075
15,169

102,417
14,965

102,786
14,968

102,417
14,965

104,490
14,893

106,389
14,892

111,859
14,883

113,746
14,886

109,742
14,875

1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
2. The value of earmarked gold increased because of the changes in par value
of the U.S. dollar in May 1972 and in October 1973.




N ote . Excludes deposits and U.S. Treasury securities held for international and
regional organizations. Earmarked gold is gold held for foreign and international
accounts and is not included in the gold stock of the United States.

Investment Transactions

A 63

3.23 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1980

1981
Transactions, and area or country

1979

1981

1980
Jan .Apr.P

Nov.

Oct.

Dec.

Jan.

Feb.

Apr.P

Mar.

U.S. corporate securities
Stocks
1 Foreign purchases..........................................................
2 Foreign s a le s ..................................................................

22,781
21,123

40,320
34,962

14,118
11,711

4,438
3,920

4,457
3,588

4,345
3,701

3,422
2,798

3,718
2,312

3 Net purchases, or sales ( - ) ..........................................

1,658

5,358

2,407

519

869

644

624

4 Foreign countries............................................................

1,642

5,340

2,377

524

867

623

612

E u ro p e ............................................................................
France ..........................................................................
Germany......................................................................
N etherlands................................................................
Switzerland..................................................................
United Kingdom ........................................................
Canada ............................................................................
Latin America and C arib b ean ....................................
Middle E a s t i ..................................................................
Other A sia......................................................................
A fric a ..............................................................................
Other countries..............................................................

217
122
-221
-7 1
-5 1 9
964
552
-1 9
688
211
-1 4
7

3,069
482
186
-3 2 8
308
2,503
865
148
1,206
16
-1
38

1,723
339
89
54
296
902
450
65
156
-1 4
1
-4

300
53
35
-2 9
83
172
-6 6
132
126
33
2
-3

633
109
121
-5 8
265
251
263
57
-1 0 9
18
0
5

254
60
8
-1 7
-8 8
300
247
-8
177
-4 9
-2
2

17 Nonmonetary international and regional
organizations..........................................................

17

18

30

-6

2

18 Foreign purchases..........................................................
19 Foreign s a le s ..................................................................

8,835
7,602

15,425
9,976

6,339
3,545

1,591
739

20 Net purchases, or sales ( - ) ..........................................

1,233

5,449

2,794

21 Foreign countries............................................................

1,330

5,514

2,763

22
23
24
25
26
27
28
29
30
31
32
33

626
11
58
-2 0 2
-1 1 8
814
80
109
424
88
1
1

1,576
129
213
-6 5
54
1,257
135
185
3,486
117
5
10

985
-2 1
280
44
54
539
35
71
1,755
-7 9
0
-4

263
2
30
8
1
228
9
7
594
24
0
0

-9 6

-6 5

31

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

3,948
3,313

4,031
3,288

406

634

744

403

626

736

438
62
24
43
105
178
26
101
63
-1 4
2
-5

257
41
18
2
-2 4
220
91
-2 2
74
-2
0
7

605
110
31
12
138
308
103
14
-9 5
0
-1
0

422
126
15
-2
78
197
230
-2 7
114
3
-1
-5

22

12

2

8

8

1,193
902

946
826

1,549
817

1,402
863

1,865
1,093

1,522
773

852

291

121

733

539

772

750

897

295

107

706

552

797

708

163
12
13
-7
8
166
21
11
105
-3
0
-1

-2 6
12
22
17
14
-1 1 3
-7
-5
113
32
0
0

214
4
49
6
22
124
7
-3
492
-1
0
-4

311
-4 2
112
12
12
207
-2
26
201
17
0
0

132
9
97
14
4
-2 2
19
28
723
-1 0 5
0
0

328
8
23
13
17
231
12
19
340
9
0
0

14

27

-1 3

-2 5

42

B onds2

E u ro p e ............................................................................
F rance..........................................................................
Germany......................................................................
N etherlands................................................................
Switzerland..................................................................
United K ingdom ........................................................
C an a d a............................................................................
Latin America and C arib b ean ....................................
Middle E a st* ..................................................................
Other A sia ......................................................................
A fric a ..............................................................................
Other countries..............................................................

34 Nonmonetary international and regional
organizations..........................................................

-4 5

-4

Foreign securities
35 Stocks, net purchases, or sales ( - ) ............................
36 Foreign purchases......................................................
37
Foreign s a le s ..............................................................

-7 8 6
4,615
5,401

-2,084
7,885
9,968

-2 1 7
3,017
3,234

-341
795
1,136

129
927
798

-6 8
721
788

35
696
661

13
709
697

-1 8 7
763
950

-7 8
849
926

38 Bonds, net purchases, or sales ( - ) ............................
39 Foreign purchases......................................................
40 Foreign s a le s ..............................................................

-3,855
12,672
16,527

-8 4 6
17,069
17,915

-1,0 2 8
5,302
6,330

-2 0 6
1,651
1,857

92
1,254
1,161

274
1,786
1,512

-2 3 7
1,142
1,379

29
1,296
1,267

-1 4 1
1,686
1,827

-6 8 0
1,177
1,857

41 Net purchases, or sales ( - ) , of stocks and bonds . . .

-4,641

-2,929

-1,245

-5 4 7

221

206

-2 0 2

42

-3 2 8

-7 5 7

42
43
44
45
46
47
48
49

-3,891
-1,646
-2,601
347
44
-6 1
25

-3 ,806
-9 5 7
-1,948
126
-1,131
24
80

-1,274
-4 9 5
-3 0 0
154
-5 6 3
-4 2
-2 8

-5 6 3
126
-651
-3 5
-1 6
29
-1 6

198
-3 0
329
-2 4
-7 3
-1
-3

-1 7 7
-8 6
24
-1 1
-8 4
-1 3
-7

24
80
76
52
-1 6 9
-8
-lr

-3 4 0
-1 6 1
-101
-6 8
9
-1 7
-2

-6 9 8
-2 9 8
-2 7 1
119
-2 2 6
-7
-1 5

-7 5 0

876

28

15

23

383

17

12

-6 0

Foreign countries............................................................
E u ro p e ............................................................................
Canada ............................................................................
Latin America and C arib b ean ....................................
A sia..................................................................................
A fric a ..............................................................................
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).




-2 6 1
-1 1 6
-4
51
-1 7 7
-1 0
—4 r
59

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.

A 64
3.24

International Statistics □ June 1981
LIABILITIES TO U N AFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions of dollars, end of period
1979
Type, and area or country

1978

1980

1979
June

Sept.

Dec.

Mar.

June

Sept.

1 T o tal..............................................................................................................

14,869

16,940

15,510

15,700

16,940

17,352

18,446

18,454

2 Payable in dollars........................................................................................
3 Payable in foreign currencies2 ..................................................................

11,506
3,363

13,922
3,018

12,623
2,888

12,692
3,008

13,922
3,018

14,417
2,936

15,080
3,366

15,214
3,239

By type
4 Financial liabilities......................................................................................
5
Payable in dollars....................................................................................
6 Payable in foreign currencies................................................................

6,295
3,831
2,464

7,302
5,092
2,210

6,041
3,867
2,173

6,131
3,877
2,254

7,302
5,092
2,210

7,781
5,597
2,184

8,281
5,725
2,556

8,125
5,707
2,418

7 Commercial liabilities................................................................................
8 Trade payables........................................................................................
9 Advance receipts and other liabilities..................................................

8,574
4,008
4,566

9,639
4,380
5,258

9,470
4,302
5,168

9,568
4,051
5,518

9,639
4,380
5,258

9,571
4,138
5,433

10,165
4,265
5,899

10,328
4,369
5,960

10
11

Payable in dollars....................................................................................
Payable in foreign currencies................................................................

7,675
899

8,830
808

8,755
715

8,815
754

8,830
808

8,819
752

9,355
810

9,507
821

12
13
14
15
16
17
18

By area or country
Financial liabilities
E u ro p e......................................................................................................
Belgium-Luxembourg........................................................................
France....................................................................................................
G erm any..............................................................................................
N etherlands..........................................................................................
Sw itzerland..........................................................................................
United Kingdom..................................................................................

3,903
289
167
366
390
248
2,110

4,574
345
168
497
828
170
2,372

3,582
355
134
283
401
235
1,955

3,713
317
126
381
542
190
1,957

4,574
345
168
497
828
170
2,372

4,808
360
188
520
795
174
2,568

5,392
422
341
657
783
238
2,783

5,214
404
327
557
766
224
2,761

19

C anada......................................................................................................

244

445

290

304

445

383

482

456

20
21
22
23
24
25
26

Latin America and C aribbean..............................................................
Bahamas................................................................................................
B e rm u d a ..............................................................................................
B ra z il....................................................................................................
British West Indies..............................................................................
M exico..................................................................................................
V enezuela............................................................................................

1,357
478
4
10
194
102
49

1,483
375
81
18
514
121
72

1,395
477
2
19
189
131
68

1,347
390
2
14
198
122
71

1,483
375
81
18
514
121
72

1,764
459
83
22
694
101
70

1,633
434
2
25
700
101
72

1,718
412
1
20
685
108
74

27
28
29

Japan ....................................................................................................
Middle East oil-exporting countries3 ..............................................

780
714
32

790
723
31

764
706
25

757
700
19

790
723
31

805
737
26

750
680
31

705
615
37

30
31

A frica........................................................................................................
Oil-exporting countries4 ....................................................................

5
2

4
1

6
2

5
1

4
1

11
1

10
1

11
1

32

All other5..................................................................................................

5

4

5

5

4

10

15

21

Commercial liabilities
33
E u ro p e......................................................................................................
34
B elgium -Luxem bourg................................................................................
35
France....................................................................................................
36
G erm an y ..............................................................................................
37
N etherlands..........................................................................................
Sw itzerland..........................................................................................
38
39
United Kingdom..................................................................................

3,033
75
321
529
246
302
824

3,621
137
467
534
227
310
1,073

3,303
81
353
471
230
439
997

3,393
103
394
539
206
348
1,015

3,621
137
467
534
227
310
1,073

3,682
117
503
533
288
382
994

4,008
132
485
714
245
462
1,120

4,066
109
501
693
276
452
1,033

40

C anada......................................................................................................

667

868

663

717

868

720

591

590

41
42
43
44
45
46
47

Latin A merica..........................................................................................
Bahamas................................................................................................
B erm u d a..............................................................................................
B ra z il....................................................................................................
British West Indies..............................................................................
M exico..................................................................................................
V enezuela............................................................................................

997
25
97
74
53
106
303

1,323
69
32
203
21
257
301

1,335
65
82
165
121
216
323

1,401
89
48
186
21
270
359

1,323
69
32
203
21
257
301

1,253
4
47
228
20
235
211

1,271
26
107
151
37
272
210

1,361
8
114
156
12
324
293

48
49
50

Japan ....................................................................................................
Middle East oil-exporting countries3 ..............................................

2,932
448
1,523

2,865
488
1,017

3,034
516
1,225

2,996
517
1,070

2,865
488
1,017

2,912
578
901

3,053
411
1,019

2,909
502
944

51
52

A frica........................................................................................................
Oil-exporting countries4 ....................................................................

743
312

728
384

891
410

775
370

728
384

742
382

875
498

1,006
633

53

All other5..................................................................................................

203

233

243

287

233

263

367

396

1. For a description of the changes in the International Statistics tables, see July
1979 B ulletin , p. 550.
2. Before December 1978, foreign currency data include only liabilities denominated in foreign currencies with an original maturity of less than one year.




3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Q atar, Saudi A rabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.

Nonbank-Reported Data
3.25 CLAIMS ON UNAFFILIATED FOREIGNERS
United States1

A65

Reported by Nonbanking Business Enterprises in the

Millions of dollars, end of period
1979
Type, and area or country

1978

1980

1979
June

Sept.

Dec.

Mar.

June

Sept.

1 T o tal..............................................................................................................

27,864

30,899

30,318

30,949

30,899

31,984

31,894

31,458

2 Payable in dollars........................................................................................
3 Payable in foreign currencies2 ..................................................................

24,881
2,984

27,734
3,165

27,418
2,900

28,280
2,668

27,734
3,165

28,984
3,000

28,852
3,042

28,280
3,178

By type
4 Financial claim s..........................................................................................
5 D eposits....................................................................................................
6
Payable in dollars................................................................................
7
Payable in foreign currencies............................................................
8 Other financial claim s............................................................................
9
Payable in dollars................................................................................
10
Payable in foreign currencies............................................................

16,528
11,069
10,000
1,068
5,459
3,874
1,584

18,139
12,493
11,584
909
5,646
3,803
1,843

19,321
13,661
12,706
956
5,660
4,079
1,581

19,176
13,730
12,830
901
5,446
4,030
1,416

18,139
12,493
11,584
909
5,646
3,803
1,843

19,260
13,586
12,612
974
5,673
4,055
1,619

18,543
12,702
11,822
879
5,841
4,103
1,737

18,164
12,099
11,018
1,081
6,065
4,395
1,670

11 Commercial claims......................................................................................
12 Trade receivables....................................................................................
13 Advance payments and other c la im s ..................................................

11,337
10,778
559

12,760
12,072
688

10,997
10,368
628

11,773
11,061
712

12,760
12,072
688

12,724
12,079
645

13,352
12,656
695

13,294
12,605
688

14
15

Payable in dollars....................................................................................
Payable in foreign currencies................................................................

11,006
331

12,347
413

10,633
363

11,421
352

12,347
413

12,317
407

12,926
425

12,867
427

16
17
18
19
20
21
22

By area or country
Financial claims
E u ro p e......................................................................................................
Betgium-Luxembourg........................................................................
France....................................................................................................
G erm an y ..............................................................................................
N etherlands..........................................................................................
Sw itzerland..........................................................................................
United Kingdom..................................................................................

5,218
48
178
510
103
98
4,023

6,129
32
177
409
53
73
5,064

5,640
54
183
363
62
81
4,650

6,562
33
191
393
51
85
5,522

6,129
32
177
409
53
73
5,064

5,840
19
290
300
39
89
4,790

5,835
23
307
190
37
96
4,855

5,576
14
381
168
30
41
4,546

23

C anada......................................................................................................

4,482

4,812

5,146

4,767

4,812

4,882

4,778

4,798

24
25
26
27
28
29
30

Latin America and C aribbean..............................................................
Bahamas................................................................................................
B erm u d a..............................................................................................
B ra z il....................................................................................................
British West Indies..............................................................................
M exico..................................................................................................
V enezuela............................................................................................

5,672
2,959
80
151
1,288
163
157

6,204
2,684
30
163
2,001
158
143

7,448
3,648
57
141
2,407
159
155

6,682
3,284
31
133
1,838
156
139

6,204
2,684
30
163
2,001
158
143

7,516
3,450
34
128
2,591
169
134

6,851
3,007
25
120
2,393
178
139

6,671
2,757
65
116
2,283
192
128

31
32
33

Asia............................................................................................................
Japan ....................................................................................................
Middle East oil-exporting countries3 ..............................................

920
305
18

697
190
16

800
217
17

818
222
21

697
190
16

713
226
18

758
253
16

792
269
20

34
35

A frica........................................................................................................
Oil-exporting countries4 ....................................................................

181
10

253
49

227
23

277
41

253
49

265
40

256
35

260
29

36

All other5..................................................................................................

55

44

61

69

44

43

65

68

37
38
39
40
41
42
43

Commercial claims
E u ro p e......................................................................................................
Belgium-Luxembourg........................................................................
France....................................................................................................
G erm an y ..............................................................................................
N etherlands..........................................................................................
Sw itzerland..........................................................................................
United Kingdom..................................................................................

3,985
144
609
399
267
198
827

4,901
203
727
584
298
269
905

3,833
170
470
421
307
232
731

4,127
179
518
448
262
224
818

4,901
203
727
584
298
269
905

4,756
208
703
515
347
349
924

4,820
255
662
504
297
429
908

4,655
230
707
569
289
333
988

44

C anada......................................................................................................

1,096

843

1,106

1,164

843

862

895

929

45
46
47
48
49
50
51

Latin America and C aribbean..............................................................
Bahamas................................................................................................
B e rm u d a ..............................................................................................
B ra z il....................................................................................................
British West Indies..............................................................................
M exico..................................................................................................
V enezuela............................................................................................

2,547
109
215
629
9
506
292

2,855
21
197
647
16
700
342

2,410
98
118
503
25
588
296

2,595
16
154
568
13
648
346

2,855
21
197
647
16
700
342

2,992
19
135
656
11
835
349

3,281
19
133
697
9
921
394

3,375
53
81
710
17
981
388

52
53
54

Asia............................................................................................................
Japan ....................................................................................................
Middle East oil-exporting countries3 ..............................................

3,082
976
717

3,365
1,127
766

2,967
1,005
685

3,116
1,128
701

3,365
1,127
766

3,370
1,209
718

3,540
1,130
829

3,395
1,094
837

55
56

A frica........................................................................................................
Oil-exporting countries4 ....................................................................

447
136

556
133

487
139

549
140

556
133

518
114

567
115

669
135

57

All other5..................................................................................................

179

240

194

220

240

225

249

270

1. For a description of the changes in the International Statistics tables, see July
1979 B ulletin , p. 550.
2. Prior to December 1978, foreign currency data include only liabilities denominated in foreign currencies with an original maturity of less than one year.




3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Q atar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.

A 66

International Statistics □ June 1981

3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Rate on May 31. 1981

Rate on May 31, 1981

Argentina
Austria ..
Belgium..
Brazil....
Canada ..
Denmark.

Per­
cent

Month
effective

172.87
6.75
13.0
40.0
18.68
11.00

May 1981
Mar. 1980
May 1981
June 1980
May 1981
Oct. 1980

Country

France1....................
Germany. Fed. Rep. of
Italy ........................
Japan......................
Netherlands..............
Norway....................

1. As from February 1981, the rate at which the Bank of France discounts
Treasury bills for 7 to 10 days.
Note. Rates shown are mainly those at which the central bank either
discounts or makes advances against eligible commercial paper and/or
3.27

Rate on May 31, 1981

Country

Country

Per­
cent

Month
effective

22.0
7.5
19.0
6.25
9.0
9.0

May 1981
May 1980
Mar. 1981
Mar. 1981
Mar. 1981
Nov. 1979

Sweden ..........
Switzerland.....
United Kingdom
Venezuela.......

Per­
cent

Month
effective

12.0
5.0
12.0
10.0

Jan. 1981
May 1981
Mar. 1981
July 1980

government securities for commercial banks or brokers. For countries with
more than one rate applicable to such discounts or advances, the rate
shown is the one at which it is understood the central bank transacts the
largest proportion of its credit operations.

FOREIGN SHORT-TERM INTEREST RATES
P e rc e n t p e r a n n u m , a v e ra g e s o f daily figures

1981

Country, or type
Feb.
8.74
9.18
8.52
3.67
0.74
6.53
8.10
11.40
7.14
4.75

1 Eurodollars......
United Kingdom
3 Canada ..........
4 Germany........
5 Switzerland......
6 Netherlands ....
7 France ...........
8 Italy..............
9 Belgium..........
10 Japan.............
2

11.96
13.60
11.91
6.64
2.04
9.33
9.44
11.85
10.48
6.10

14.00
16.59
13.12
9.45
5.79
10.60
12.18
17.50
14.06
11.45

16.46
15.84
12.96
9.37
5.53
9.59
11.26
17.51
12.40
9.74

19.47
14.64
16.83
10.11
6.61
9.69
11.52
17.47
12.75
9.60

18.07
14.20
16.98
9.41
5.68
9.36
11.38
17.34
12.41
9.00

Mar.

17.18
13.12
17.28
10.74
7.09
9.78
11.87
17.50
12.52
8.52

15.36
12.58
16.85
13.44
8.33
10.61
12.56
18.22
13.93
7.87

Apr.
15.95
12.26
17.35
13.12
8.67
10.41
13.00
19.92
17.16
6.83

May
19.06
12.34
18.96
13.06
9.87
11.76
15.75
19.92
16.90
7.22

Note. Rates are for 3-month interbank loans except for the following:
Canada, finance company paper; Belgium. 3-month Treasury bills: and Japan.
Gensaki rate.

3.28

FOREIGN EXCHANGE RATES
C en ts p e r u n it o f fo reig n c u rren c y

Country/currency

1978

1979

1980

1980
Nov.

1 Australia/dollar..................
2 Austria/schilling..................
3 Belgium/franc.....................
4 Canada/dollar.....................
5 Denmark/krone..................
6 Finland/markka..................
7 France/franc......................
8 Germany/deutsche mark.......
9 India/rupee........................
10 Ireland/pound....................
11 Italv/lira...........................
12 Japan/yen .........................
13 Malaysia/ringgit..................
14 Mexico/peso......................
15 Netherlands/guilder..............
16 New Zealand/dollar.............
17 Norway/krone....................
18 Portugal/escudo..................
19 South Africa/rand...............
20 Spain/peseta......................
21 Sri Lanka/rupee..................
22 Sweden/krona....................
23 Switzerland/franc.................
24 United Kingdom/pound........
Memo:
25 United States/dollar1 ...........

114.41
6.8958
3.1809
87.729
18.156
24.337
22.218
49.867
12.207
191.84
.11782
.47981
43.210
4.3896
46.284
103.64
19.079
2.2782
115.01
1.3073
6.3834
22.139
56.283
191.84
92.39

111.77
7.4799
3.4098
85.386
19.010
27.732
23.504
54.561
12.265
204.65
.12035
.45834
45.720
4.3826
49.843
102.23
19.747
2.0437
118.72
1.4896
6.4226
23.323
60.121
212.24
88.09

114.00
7.7349
3.4247
85.530
17.766
26.892
23.694
55.089
12.686
205.77
.11694
.44311
45.967
4.3535
50.369
97.337
20.261
1.9980
128.54
1.3958
6.1947
23.647
59.697
232.58
87.39

116.75
7.3433
3.2457
84.286
16.962
26.452
22.515
52.113
12.868
194.59
.11000
.46928
46.187
4.3166
48.102
96.770
19.938
1.9178
133.20
1.3085
5.8139
23.240
57.942
239.41
89.31

1. Index of weighted-average exchange value of U.S. dollar against cur­
rencies of other G-10 countries plus Switzerland. March 1973 = 100.
Weights are 1972-76 global trade of each of the 10 countries. Series
revised as of August 1978. For description and back data, see 'index of




1981
Dec.
116.86
7.1549
3.1543
83.560
16.573
25.903
21.925
50.769
12.608
189.01
.10704
.47747
45.406
4.3071
46.730
95.404
19.370
1.8773
132.83
1.2653
5.7379
22.722
56.022
234.59
90.99

Jan.
118.19
7.0297
3.0962
83.974
16.181
25.752
21.539
49.771
12.567
185.54
.10478
.49419
44.994
4.2792
45.810
96.137
19.087
1.8591
133.69
1.2409
5.9525
22.490
54.907
240.29
91.38

Feb.
116.26
6.6033
2.8972
83.442
15.152
24.656
20.142
46.757
12.164
173.31
.09807
.48615
44.196
4.2544
42.870
93.414
18.485
1.7722
129.27
1.1686
5.5975
21.734
51.502
229.41
96.02

Mar.
116.29
6.6959
2.8966
83.936
15.109
24.612
20.147
47.498
12.131
173.25
.09699
.47897
43.830
4.2238
42.912
91.999
18.540
1.7621
126.50
1.1672
5.5527
21.704
52.043
223.19
96.22

Apr.
115.32
6.5355
2.8220
83.966
14.683
23.059
19.548
46.219
12.060
168.46
.09280
.46520
43.182
4.1880
41.660
90.273
18.271
1.7178
123.32
1.1395
5.4185
21.309
50.664
217.53
98.80

May
114.06
6.1722
2.6742
83.265
13.864
23.207
18.225
43.601
11.900
159.49
.08766
.45332
42.752
4.1500
39.224
88.150
17.652
1.6449
119.35
1.0953
5.4422
20.450
48.400
208.84
103.59

the Weighted-Average Exchange Value of the U.S. Dollar: Revision” on page
700 of the August 1978 Bulletin.
Note. Averages of certified noon buying rates inNewYork for cable transfers.

A67

Guide to Tabular Presentation,
Statistical Releases, and Special Tables
G u id e t o Ta b u l a r P r e s e n t a t io n

S y m b o ls a n d A b b r e v ia tio n s
c
e
p
r

Corrected
Estimated
Preliminary
Revised (Notation appears on column heading
when more than half of figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less thati
500,000 when the smallest unit given is
millions)

0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs

Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable

G en era l In fo rm a tio n
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
“ U.S. government securities” may include guaranteed is­
sues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct obli­

gations 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.

S t a t is t ic a l R e l e a s e s

L is t P u b lish e d S e m ia n n u a lly , w ith L a te s t B u lletin R e fe r e n c e
Anticipated schedule of release dates for periodic releases .................................................................

Issue

Page

December 1980

A80

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

P u b lish e d Irre g u la rly , w ith L a te s t B u lletin R e fe re n c e
Commercial bank assets and
Commercial bank assets and
Commercial bank assets and
Commercial bank assets and
Assets and liabilities of U.S.

liabilities, call dates, December 31, 1978, to March 31, 1980
liabilities, June 30, 1980............................................................
liabilities, September 30, 1980..................................................
liabilities, December 31, 1980 ..................................................
branches and agencies of foreign banks, December 31, 1980.

S p e c ia l ta b le s b e g in on fo llo w in g p a g e .




October
December
February
April
June

1980
1980
1981
1981
1981

A71
A68
A68
A72
A68

A68

Special Tables □ June 1981

4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, Dec. 31, 19801
Millions of dollars
All states2

New York

Item
Total

Branches

Agencies

Branches

Agencies

Other states2

Cali­
fornia,
total3

Illinois,
branches
Branches

Agencies

1 Total assets4 ..........................................................................

147,966

89,878

58,088

78,116

24,765

30,995

6,733

5,003

2,354

2 Cash and due from depository institutions......................
3 Currency and coin (U.S. and fo re ig n )........................
4 Balances with Federal Reserve B a n k s ........................
5 Balances with other central banks................................
6 Demand balances with commercial banks in United
States..........................................................................
7 All other balances with depository institutions in
United States and with banks in foreign
countries....................................................................
8
Time and savings balances with commercial banks
in United States....................................................
9
Balances with other depository institutions in
United S tates........................................................
10
Balances with banks in foreign countries................
11
Foreign branches of U.S. banks............................
12
Other banks in foreign countries..........................
13 Cash items in process of collection..............................

19,562
16
200
0

15,253
13
167
0

4,309
3
32
0

14,243
11
150
0

3,978
1
22
0

270
1
8
0

881
1
9
0

125
2
8
0

65
0
3
0

8,550

5,666

2,884

5,560

2,752

113

65

41

20

10,033

8,884

1,149

8,005

965

145

803

73

42

4,668

4,053

615

3,830

541

69

147

73

8

606
4,759
1,196
3,563
762

601
4,230
954
3,276
522

5
529
242
287
241

601
3,574
794
2,780
517

5
419
209
210
238

0
76
6
69
3

0
656
160
496
3

0
0
0
0
2

0
34
27
7
0

14 Total securities, loans, and lease financing receivables..

94,837

61,761

33,076

53,137

15,511

15,396

5,375

3,234

2,184

15 Total securities, book v a lu e ..............................................
16 U.S. T re asu ry ..................................................................
17 Obligations of other U.S. government agencies and
corporations..............................................................
18 Obligations of states and political subdivisions in
United S tates............................................................
19 Other bonds, notes, debentures and corporate stock

3,477
2,277

2,077
1,317

1,400
960

1,805
1,146

1,299
907

101
54

149
52

123
118

0
0

336

100

235

92

219

17

6

2

0

177
687

175
485

2
203

150
416

1
174

2
29

23
68

2
0

0
0

20 Federal funds sold and securities purchased under
agreements to re se ll....................................................

6,677

4,166

2,511

3,913

1,944

559

211

41

8

By holder
Commercial banks in United S ta te s ............................
O thers................................................................................

6,269
408

3,939
228

2,330
180

3,725
188

1,764
180

559
0

172
40

41
0

8
0

6,600
97
6,503

4,115
55
4,060

2,484
42
2,442

3,879
33
3,846

1,917
23
1,895

559
19
539

195
22
173

41
0
41

8
0
8

21
22
23
24
25
26

By type
One-day maturity or continuing contract....................
Securities purchased under agreements to resell. . .
O ther..............................................................................
Other securities purchased under agreements to
re s e ll..........................................................................

77

51

27

35

27

0

16

0

0

27 Total loans, g ro s s ................................................................
28 L ess: Unearned income on loans......................................
29 E quals: Loans, n e t ............................................................

91,488
130
91,358

59,764
81
59,683

31,724
49
31,676

51,406
75
51,331

14,228
16
14,212

15,327
32
15,295

5,230
4
5,225

3,113
1
3,111

2,185
1
2,184

Total loans, gross, by category
30 Real estate loans..................................................................
31 Loans to financial institutions............................................
32 Commercial banks in United S ta te s ............................
33
U.S. branches and agencies of other foreign banks
34
Other commercial b a n k s............................................
35 Banks in foreign countries..............................................
36
Foreign branches of U.S. banks................................
37
O ther..............................................................................
38 Other financial institutions............................................

2,219
31,737
17,015
16,084
932
13,825
1,557
12,268
897

262
23,957
12,800
12,043
757
10,522
971
9,551
636

1,958
7,780
4,216
4,041
175
3,303
586
2,717
261

114
22,246
11,684
11,017
666
10,037
$28
9,108
525

862
3,330
1,444
1,390
54
1,702
357
1,345
184

783
4,366
2,762
2,651
111
1,552
230
1,323
52

18
1,574
991
955
36
479
42
437
104

120
137
125
71
54
6
0
6
6

323
84
10
0
10
49
0
49
25

39 Loans for purchasing or carrying securities....................
40 Commercial and industrial lo a n s......................................
41
U.S. addressees (dom icile)............................................
42 Non-U.S. addressees (domicile)....................................
43 Loans to individuals for household, family, and other
personal expenditures..................................................
44 AH other loans......................................................................
45 Loans to foreign governments and official
institutions................................................................
46 O ther..................................................................................

822
45,767
29,227
16,540

457
27,202
16,855
10,347

364
18,565
12,372
6,193

432
21,030
12,021
9,008

324
7,710
4,655
3,056

41
9,153
6,230
2,922

25
3,368
2,992
376

0
2,801
1,838
963

0
1,706
1,491
215

134
10,809

83
7,803

51
3,006

53
7,531

23
1,979

29
956

8
237

20
34

1
71

8,767
2,042

5,968
1,835

2,799
207

5,730
1,801

1,810
169

920
36

218
19

19
15

70
1

47 Lease financing receivables................................................
48 All other assets....................................................................
49 Customers’ liability on acceptances outstanding........
50
U.S. addressees (dom icile)........................................
51
Non-U.S. addressees (domicile)................................
52 Net due from related banking institutions5 ................
53
O ther..................................................................................

1
26,890
7,827
3,909
3,918
14,856
4,207

1
8,698
4,085
2,210
1,875
1,655
2,958

0
18,192
3,742
1,699
2,043
13,201
1,250

1
6,823
3,955
2,162
1,793
185
2,684

0
3,332
2,767
898
1,869
10
555

0
14,770
950
788
162
13,167
653

0
266
57
41
16
0
209

0
1,603
74
6
67
1,471
58

0
97
25
14
12
24
48




U.S. Branches and Agencies

A 69

4.30 Continued
All states2

New York

Item
Total

Branches

Agencies

Branches

Agencies

O ther states2

Cali­
fornia,
total3

Illinois,
branches
Branches

Agencies

54 Total liabilities4 ....................................................................

147,966

89,878

58,088

78,116

24,765

30,995

6,733

5,003

2,354

55 Total deposits and credit balances....................................
Individuals, partnerships, and corporations................
56
57
U.S. addressees (dom icile)........................................
58
Non-U.S. addressees (domicile)................................
59
U.S. government, states, and political subdivisions
in United States........................................................
60 All oth e r............................................................................
Foreign governments and official institutions........
61
Commercial banks in United S ta te s ........................
62
U.S. branches and agencies of other foreign
63
banks..................................................................
Other commercial banks in United S tates..........
64
Banks in foreign countries..........................................
65
Foreign branches of U.S. banks............................
66
Other banks in foreign countries..........................
67
Certified and officers’ checks, travelers checks,
68
and letters of credit sold for cash......................

43,128
24,067
21,384
2,683

38,729
23,269
21,220
2,049

4,398
798
164
634

34,700
19,592
17,647
1,945

3,448
279
95
184

850
444
57
387

983
747
693
54

3,039
2,925
2,874
51

107
81
19
62

95
18,971
3,241
6,374

95
15,370
2,910
5,597

0
3,600
332
777

33
15,076
2,769
5,548

0
3,169
72
741

0
406
259
23

2
235
128
40

60
60
13
9

0
26
0
14

1,268
5,106
2,965
50
2,915

1,227
4,370
2,519
49
2,470

42
736
446
1
445

1,201
4,348
2,497
47
2,450

5
735
368
0
368

22
0
72
1
71

26
13
13
0
13

0
9
9
2
7

14
0
6
0
6

6,390

4,344

2,045

4,262

1,987

53

54

28

6

69 Demand deposits..................................................................
Individuals, partnerships, and corporations................
70
U.S. addressees (dom icile)........................................
71
Non-U.S. addressees (domicile)................................
72
U.S. government, states, and political subdivisions
73
in United States........................................................
74
All oth e r............................................................................
Foreign governments and official institutions........
75
Commercial banks in United S ta te s ........................
76
U.S. branches and agencies of other foreign
77
banks..................................................................
Other commercial banks in United S tates ..........
78
79
Banks in foreign countries..........................................
Certified and officers’ checks, travelers checks,
80
and letters of credit sold for cash......................

12,466
1,418
862
556

10,375
1,390
859
531

2,091
28
3
25

10,087
1,195
680
515

1,987
0
0
0

100
30
5
25

152
91
85
6

135
102
92
10

6
0
0
0

16
11,032
643
3,029

16
8,970
632
3,029

0
2,062
11
0

15
8,877
628
3,027

0
1,987
0
0

0
70
10
0

0
61
2
1

0
32
3
1

0
6
0
0

52
2,977
970

52
2,977
964

0
0
6

52
2,976
960

0
0
0

0
0
6

0
1
4

0
1
0

0
0
0

6,390

4,344

2,045

4,262

1,987

53

54

28

6

81 Time deposits........................................................................
82
Individual, partnerships, and corporations..................
83
U.S. addressees (dom icile)........................................
84
Non-U.S. addressees (domicile)................................
85 U.S. government, states, and political subdivisions
in United States........................................................
86 All oth e r............................................................................
87
Foreign governments and official institutions........
Commercial banks in United S ta te s ........................
88
U.S. branches and agencies of other foreign
89
banks..................................................................
O ther commercial banks in United S tates..........
90
Banks in foreign countries..........................................
91

28,697
21,965
20,172
1,793

28,101
21,627
20,172
1,455

596
338
0
339

24,412
18,196
16,826
1,371

0
0
0
0

599
341
2
338

812
637
591
46

2,874
2,792
2,753
38

0
0
0
0

79
6,654
2,470
2,563

79
6,395
2,277
2,563

0
259
193
0

18
6,198
2,141
2,521

0
0
0
0

0
258
193
0

1
174
126
39

60
22
10
4

0
0
0
0

1,175
1,388
1,620

1,175
1,388
1,555

0
0
65

1,149
1,372
1,537

0
0
0

0
0
65

26
12
10

0
4
9

0
0
0

92 Savings deposits....................................................................
93
Individuals, partnerships, and corporations................
94
U.S. addressees (dom icile)........................................
95
Non-U.S. addressees (domicile)................................
%
U.S. government, states, and political subdivisions
in United States........................................................
97 All oth e r............................................................................

276
276
189
87

253
252
189
64

23
23
0
23

202
201
142
59

0
0
0
0

25
25
2
24

20
20
17
2

30
30
28
2

0
0
0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

98 Credit balances....................................................................
99
Individuals, partnerships, and corporations................
U.S. addressees (dom icile)........................................
100
101
Non-U.S. addressees (domicile)................................
102 U.S. government, states, and political subdivisions
in United States........................................................
103 All oth e r............................................................................
104
Foreign governments and official institutions........
105
Commercial banks in United S ta te s ........................
U.S. branches and agencies of other foreign
106
banks..................................................................
107
Other commercial banks in United S tates..........
Banks in foreign countries..........................................
108

1,688
409
162
247

1
1
1
0

1,687
408
161
247

0
0
0
0

1,461
279
95
184

126
48
48
0

0
0
0
0

1
1
1
0

100
82
19
62

0
1,279
128
777

0
0
0
0

0
1,279
128
777

0
0
0
0

0
1,182
72
741

0
78
56
22

0
0
0
0

0
0
0
0

0
19
0
14

42
736
375

0
0
0

42
736
375

0
0
0

5
735
368

22
0
0

0
0
0

0
0
0

14
0
6

For notesseepage A71.




A 70

Special Tables □ June 1981

4.30 Continued
All states2

New York

Item
Total

Branches

Agencies

Branches

Agencies

Other states2

Cali­
fornia,
total3

Illinois,
branches
Branches

Agencies

109 Federal funds purchased and sold under agreement to
repurchase....................................................................

10,178

5,385

4,793

4,654

1,511

3,096

622

110

186

110
111

By holder
Commercial banks in United S ta te s ............................
O thers................................................................................

8,893
1,285

4,593
792

4,300
493

3,876
111

1,213
298

3,024
72

607
15

110
0

64
122

112
113
114
115

By type
One*day maturity or continuing contract....................
Securities sold under agreements to repurchase . . .
O ther..............................................................................
Other securities sold under agreements to
repurchase................................................................

9,485
197
9,288

4,720
172
4,549

4,765
25
4,739

4,001
166
3,834

1,482
15
1,468

3,096
11
3,085

610
0
610

110
5
105

186
0
186

693

665

29

653

29

0

12

0

0

116 Other liabilities for borrowed m o n e y ..............................
117 Owed to b a n k s ................................................................
118
U.S. addressees (dom icile)........................................
119
Non-U.S. addressees (domicile)................................
120 Owed to o th e rs................................................................
121
U.S. addressees (dom icile)........................................
122
Non-U.S. addressees (domicile)................................

43,459
40,084
34,008
6,076
3,380
2,478
902

15,691
13,444
8,773
4,671
2,252
1,602
651

27,768
26,640
25,234
1,406
1,128
877
251

13,460
11,386
7,500
3,885
2,075
1,471
603

5,487
5,246
4,542
703
241
52
189

22,211
21,330
20,633
697
881
824
56

1,658
1,603
820
783
56
25
31

573
455
452
3
122
106
16

70
64
59
5
6
0
6

123 All other liabilities..............................................................
124 Acceptances executed and outstanding........................
125 Net due to related banking institutions5......................
126 O ther..................................................................................

51,196
8,649
39,012
3,536

30,067
4,289
23,080
2,699

21,129
4,360
15,932
837

25,303
4,152
18,707
2,443

14,319
2,850
11,065
405

4,838
1,483
2,946
409

3,469
64
3,207
198

1,276
72
1,147
57

1,991
27
1,941
23

27,824

27,357

467

23,908

0

469

612

2,836

0

22,261
5,563

21,874
5,483

387
79

18,669
5,240

0
0

389
79

524
87

2,679
157

0
0

14

10

4

5

0

4

1

3

0

99

93

6

55

0

5

15

23

0

Memo
127 Time deposits of $100,000 or m o re ..................................
128 Certificates of deposit (CDs) in denominations of
$100,000 or m o r e ....................................................
129 O ther..................................................................................
130 Savings deposits authorized for automatic transfer and
now accounts................................................................
131 Money market time certificates of $10,000 and less
than $100,000 with original maturities of 26 weeks
132 Time certificates of deposit in denominations of
$100,000 or more with remaining maturity of
more than 12 m onths..................................................
133
134
135
136
137
138
139
140

Acceptances refinanced with a U.S.-chartered bank . . .
Statutory or regulatory asset pledge requirem ent..........
Statutory or regulatory asset maintenance requirement
Commercial letters of cre d it..............................................
Standby letters of credit, to t a l..........................................
U.S. addressees (dom icile)............................................
Non-U.S. addressees (domicile)....................................
Standby letters of credit conveyed to others through
participations (included in total standby letters of
cred it)............................................................................

1,235

1,154

82

999

0

82

14

141

0

1,943
59,809
7,094
8,324
4,529
3,364
1,165

1,175
47,853
6,770
4,713
3,367
2,544
822

769
11,956
324
3,611
1,163
820
343

1,016
42,548
4,480
4,334
2,917
2,315
602

451
11,911
144
1,192
514
325
189

318
46
0
2,369
514
435
79

0
5,192
207
214
267
141
126

159
112
2,083
164
182
88
94

0
0
179
52
135
60
75

886

854

32

843

5

27

8

2

0

141 Holdings of commercial paper included in total gross
loans ..............................................................................
142 Holdings of acceptances included in total commercial
ana industrial loans......................................................
143 Immediately available funds with a maturity greater
than one day (included in other liabilities for bor­
rowed m oney)..............................................................

22,901

7,185

15,716

5,991

2,659

13,031

929

264

26

144 Gross due from related banking institutions5 ................
145
U.S. addressees (dom icile)............................................
146
Branches and agencies in United S tates..................
147
In the same state as re p o rte r................................
148
In other sta te s..........................................................
149
U.S. banking subsidiaries6 ........................................
150 Non-U.S. addressees (domicile)....................................
151
Head office and non-U.S. branches and agencies..
152
Non-U.S. banking companies and offices................

54,886
20,233
19,941
500
19,442
292
34,653
33,333
1,320

23,042
5,420
5,329
121
5,207
91
17,622
16,400
1,222

31,844
14,813
14,612
378
14,234
201
17,031
16,933
98

20,060
3,254
3,177
103
3,074
77
16,806
15,623
1,182

14,236
2,017
1,967
0
1,967
50
12,219
12,139
80

17,446
12,747
12,596
371
12,226
151
4,699
4,686
13

945
248
235
0
235
14
696
659
38

2,038
1,918
1,918
19
1,899
0
120
118
1

162
49
48
7
41
0
113
108
5

153 Gross due to related banking institutions5......................
154 U.S. addressees (dom icile)............................................
155
Branches and agencies in United S tates..................
156
In the same state as re p o rte r................................
157
In other sta te s..........................................................
158
U.S. banking subsidiaries6 ........................................
159 Non-U.S. addressees (domicile)....................................
160
Head office and non-U.S. branches and agencies..
161
Non-U.S. banking companies and offices................

79,042
21,154
20,942
547
20,394
213
57,887
55,604
2,283

44,467
10,259
10,180
173
10,007
80
34,208
32,233
1,975

34,575
10,895
10,762
375
10,387
133
23,680
23,371
309

38,582
6,914
6,847
157
6,690
67
31,667
29,771
1,896

25,290
6,794
6,700
0
6,700
94
18,496
18,218
278

7,225
3,274
3,245
374
2,871
29
3,951
3,928
23

4,152
2,256
2,246
0
2,246
10
1,896
1,828
68

1,714
1,089
1,087
16
1,071
2
625
614
10

2,079
827
816
0
816
11
1,252
1,245
7




1,187

1,029

158

1,019

83

76

9

0

0

4,775

2,450

2,324

2,384

1,097

1,220

32

35

7

U .S. B ranches a n d A g e n c ie s

A ll

4.30 Continued
All states2

New York

Item
Total
Average for 30 calendar days (or calendar month) ending
with report date
162 Total assets............................................................................
163 Cash and due from depository institutions......................
164 Federal funds sold and securities purchased under
agreements to re se ll....................................................
165 Total loans............................................................................
166 Loans to banks in foreign c o u n trie s................................
167 Total deposits and credit balances....................................
168 Time CDs in denominations of $100,000 or m o r e ........
169 Federal funds purchased and securities sold under
agreements to repurchase..........................................
170 Other liabilities for borrowed m o n e y ..............................
171 Number of reports filed7 ....................................................

Branches

Agencies

Branches

Agencies

148,824
16,227

87,688
12,776

61,136
3,451

75,941
11,782

29,576
3,084

29,466
315

6,765
87,083
13,040
39,423
22,700

4,036
57,225
9,936
35,923
22,221

2,729
29,859
3,104
3,500
479

3,899
49,198
9,405
32,242
19,141

2,269
13,700
1,711
2,594
71

8,441
41,965

5,139
15,664

3,302
26,301

4,437
13,398

322

145

177

85

1. Data are aggregates of categories reported on the quarterly form FFIEC 002,
“Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks.”
This form was first used for reporting data as of June 30, 1980. From November
1972 through May 1980, U.S. branches and agencies of foreign banks had filed a
monthly FR 886a report. Aggregate data from that report were available through
the Federal Reserve statistical release G .ll, last issued on July 10, 1980. Data in
this table and in the G .ll tables are not strictly comparable because of differences
in reporting panels and in definitions of balance sheet items.
2. Includes the District of Columbia.
3. Agencies account for virtually all of the assets and liabilities reported in
California.
4. Total assets and total liabilities include net balances, if any, due from or due
to related banking institutions in the United States and in foreign countries (see
footnote 5). On the former monthly branch and agency report, avail­




Cali­
fornia,
total3

Other states3
Illinois,
branches
Branches

Agencies

6,815
884

4,904
106

2,122
56

449
14,379
1,345
806
377

120
5,125
524
774
387

18
2,891
6
2,901
2,692

11
1,790
48
106
31

1,250
4,823

1,911
21,406

617
1,687

85
579

141
72

61

91

32

26

27

able through the G .ll statistical release, gross balances were included in total assets
and total liabilities. Therefore, total asset and total liability figures in this table are
not comparable to those in the G .ll tables.
5. “Related banking institutions” includes the foreign head office and other U.S.
and foreign branches and agencies of the bank, the bank’s parent holding company,
and majority-owned banking subsidiaries of the bank and of its parent holding
company (including subsidiaries owned both directly and indirectly). Gross amounts
due from and due to related banking institutions are shown as memo items.
6. “U.S. banking subsidiaries” refers to U.S. banking subsidiaries majorityowned by the foreign bank and by related foreign banks and includes U.S. offices
of U.S.-chartered commercial banks, of Edge Act and Agreement corporations,
and of New York State (Article XII) investment companies.
7. In some cases two or more offices of a foreign bank within the same met­
ropolitan area file a consolidated report.

A72

Federal Reserve Board of Governors
P a u l A. V o l c k e r , C h a irm a n

H e n r y C. W a l l i c h

F r e d e r i c k H . S c h u l t z , V ice C h a irm a n

J. C h a r l e s P a r t e e

O f f ic e o f B o a r d M e m b e r s

O f f ic e o f S t a f f D ir e c t o r f o r
M o n e t a r y a n d F in a n c ia l P o l ic y

Joseph R. C o y n e , Assistant to the Board
D o n a l d J. W i n n , Assistant to the Board
A n t h o n y F . C o l e , Special Assistant to the Board
W ill iam R. M a l o n i , Special Assistant to the Board
F rank O ’B r ie n , J r ., Special Assistant to the Board
Joseph S. S im s , Special Assistant to the Board
Ja m es L . S t u l l , Manager, Operations Review Program

L e g a l D iv is io n
R obert E. M a n n i o n , Deputy General Counsel
J. V irgil M a t t in g l y , Jr ., Associate General Counsel
G ilber t T. S c h w a r t z , Associate General Counsel
M ic h a e l E. B l e ie r , Assistant General Counsel
C o r n e l iu s K . H u r l e y , J r ., Assistant General Counsel
M a r y e l l e n A- B r o w n , Assistant to the General Counsel
C h a r l es R. M c N e il l , Assistant to the General Counsel

O f f ic e o f t h e S e c r e t a r y
B a r ba r a R. L o w r e y , Assistant Secretary
Ja m e s M c A f e e , Assistant Secretary
*D. M ic h a e l M a n ie s , Assistant Secretary

D iv is io n o f C o n s u m e r
a n d C o m m u n it y A f f a ir s
J a n e t O. H a r t , Director
G r if f it h L . G a r w o o d , Deputy 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
D olores S. S m it h , Assistant Director

D iv is io n o f B a n k i n g
S u p e r v is io n a n d R e g u l a t io n
Jo h n E. R y a n , Director
F r e deric k R. D a h l , Associate Director
W ill iam T a y l o r , Associate Director
W ill ia m W . W il e s , Associate Director
J ack M. E g e r t s o n , Assistant Director
R o bert A. J a c o b s e n , Assistant Director
D o n E . K l in e , Assistant Director
R obert S. P l o t k in , Assistant Director
T h o m a s A. S i d m a n , Assistant Director
S a m u e l H . T a l l e y , Assistant Director
L a u r a M . H o m e r , Securities Credit Officer




S t e p h e n H . A x il r o d , Staff Director
E d w a r d C. E t t i n , Deputy Staff Director
M urra y A l t m a n n , Assistant to the Board
P eter M. K e ir , Assistant to the Board
S t a n l e y J. S ig e l , Assistant to the Board
N o r m a n d R. V . B e r n a r d , Special Assistant to the Board

D iv is io n o f R e s e a r c h a n d S t a t is t ic s
Ja m es L . K ic h l in e , Director
Joseph S. Z e is e l , Deputy Director
M ich ael J. P r e l l , Associate Director
R o bert A . E is e n b e is , Senior Deputy Associate Director
Ja r e d J. E n z l e r , Senior Deputy Associate Director
E l e a n o r J. S t o c k w e l l , Senior Deputy Associate Director
D o n a l d L . K o h n , Deputy Associate Director
J. C o r t l a n d G. P e r e t , Deputy Associate Director
H e l m u t F . W e n d e l , Deputy Associate Director
M a r th a B e t h e a , Assistant Director
Joe M. C l e a v e r , Assistant Director
R obert M. F is h e r , Assistant Director
D a v id E. L i n d s e y , Assistant Director
L a w r e n c e S l if m a n , Assistant Director
F r e deric k M. S t r u b l e , Assistant Director
S t e p h e n P. T a y l o r , Assistant Director
L e v o n H . G a r a b e d i a n , Assistant Director (Administration)

D iv is io n o f I n t e r n a t io n a l F in a n c e
E d w in M. T r u m a n , Director
R obert F. G e m m il l , Associate Director
C h ar les J. S ie g m a n , Associate Director
S a m u e l P iz e r , Staff Adviser
D ale W . H e n d e r s o n , Assistant Director
L arry J. P r o m is e l , Assistant Director
R al ph W . S m it h , J r ., Assistant Director

A73

and Official Staff
N an cy

H. T e e t e r s
J. R i c e

L y le E . G r a m le y

E m m e tt

O f f ic e o f
S ta f f D ir e c t o r f o r M a n a g e m e n t

O f f ic e o f S t a f f D ir e c t o r f o r
F e d e r a l R e s e r v e B a n k A c t iv it ie s

J o h n M . D e n k l e r , Staff Director
E d w a r d T. M u l r e n i n , Assistant Staff Director
J oseph W . D a n ie l s , S r . , Director o f Equal Employment Op-

T h e o d o r e E. A l l is o n , Staff Director
H arry A . G u in t e r , Assistant Director fo r Contingency

Planning

portunity
D iv is io n o f D a t a P r o c e s s in g
C h ar les L. H a m p t o n , Director
B ruce M . B e a r d s l e y , Deputy Director
U yl ess D . B l a c k , Associate Director
G l e n n L. C u m m i n s , Assistant Director
N ea l H . H il l e r m a n , Assistant Director
C. W il l ia m S c h l e ic h e r , J r ., Assistant Director
R obert J. Z e m e l , Assistant Director

D iv is io n o f P e r s o n n e l
D a v id L. S h a n n o n , Director
Jo h n R. W e is , Assistant Director
C h ar les W . W o o d , Assistant Director

O f f ic e o f t h e C o n t r o l l e r
Jo h n K a k a l e c , Controller
G eorge E . L i v in g s t o n , Assistant Controller

D iv is io n o f S u p p o r t S e r v ic e s
D o n a l d E. A n d e r s o n , Director
W a l te r W . K r e im a n n , Associate Director
R obert E. F r a z ie r , Assistant Director

*On loan from the Federal Reserve Bank of Kansas City.




D iv is io n o f F e d e r a l R e s e r v e
B a n k O p e r a t io n s
C l y d e H . F a r n s w o r t h , J r ., Director
L or in S. M e e d e r , Associate Director
R a y m o n d L. T e e d , Associate Director
W a l t e r A l t h a u s e n , Assistant Director
C ha r l es W . B e n n e t t , Assistant Director
R ic h ar d B . G r e e n , Assistant Director
E llio t t C. M c E n t e e , Assistant Director
D a v id L. R o b in s o n , Assistant Director
P. D . R i n g , Adviser

A74

Federal Reserve Bulletin □ June 1981

FO M C and Advisory Councils
F e d e r a l O p e n M a r k e t C o m m it t e e
P a u l A . V o l c k e r , Chairman
E dw a r d G. B oehne
R o bert H . B o y k in
E. G e r a l d C orr ig a n

A n t h o n y M . S o l o m o n , Vice Chairman
L yle E . G ram ley

F re derick H . S c h u l t z
N a n c y H .T eeters
H e n r y C. W a l lic h

J. C h a r l es P ar te e
E m m e t t J. R ice

S t e p h e n H . A x il r o d , Staff Director
M u r r a y A l t m a n n , Secretary
N o r m a n d R. V . B e r n a r d , Assistant Secretary
N a n c y M . S t e e l e , Deputy Assistant Secretary
Jam es H . O l t m a n , Deputy General Counsel
R obert E. M a n n i o n , Assistant General Counsel
Ja m es L . K ic h l in e , Economist
A l a n R. H o l m e s , Adviser fo r Market Operations
Joseph E . B u r n s , Associate Economist

Jo h n P. D a n f o r t h , Associate Economist
R ic h a r d G. D a v is , Associate Economist
E d w a r d C. E t t i n , Associate Economist
P eter M. K e ir , Associate Economist
D o n a l d J. M u l l i n e a u x , Associate Economist
M ic h ae l J. P r e l l , Associate Economist
K arl L. S c h e l d , Associate Economist
E d w in M. T r u m a n , Associate Economist
Joseph S. Z e is e l , Associate Economist

P e t e r D . S t e r n l ig h t , Manager for Domestic Operations, System Open Market Account
S cott E . P a r d e e , Manager for Foreign Operations, System Open Market Account

F e d e r a l A d v is o r y C o u n c il
M erle E. G i l l i a n d , Fourth District, President
C h a u n c e y E. S c h m id t , Twelfth District, Vice President
R o b e rt M. S u r d a m , Seventh District
R o n a l d T e r r y , Eighth District
C l a r e n c e G . F r a m e , Ninth District
G o r d o n E. W e l l s , Tenth District
T. C. F r o st , Jr ., Eleventh District

W ill iam S. E d g e r l y , F irst D istrict
D o n a l d C. P l a t t e n , S econ d D istrict
Jo h n H . W a l t h e r , Third D istrict
J. O w e n C o l e , Fifth D istrict
R obert S t r ic k l a n d , Sixth D istrict

H erber t V . P r o c h n o w , Secretary
W il l ia m J. K o r sv ik , Associate Secretary

C o n s u m e r A d v is o r y C o u n c il
R a l ph J. R o h n e r , Washington D.C., Chairman
C h ar l o tt e H . S c o t t , Charlottesville, Virginia, Vice Chairman
A r t h u r F. B o u t o n , Little Rock, Arkansas
Ju l ia H . B o y d , Alexandria, Virginia
E l l e n B r o a d m a n , Washington, D.C.
Ja m e s L. B r o w n , M ilw au k ee, W isconsin
M ark E. B u d n i t z , A tlanta, Georgia
J o seph N . C u g i n i , W esterly, R hode Island
R ic h a r d S. D ’A g o s t in o , Philadelphia, P en nsylvan ia
S u s a n P ierso n D e W i t t , Springfield, Illinois
Jo a n n e S. F a u l k n e r , N e w H aven , C onnecticut
L u t h e r G a t l in g , N e w Y ork, N e w York
v e r n a r d W . H e n l e y , R ich m ond , Virginia
Ju a n Je su s H in o jo sa , M cA llen , T exas
S h ir l e y T. H o so i , L os A n g eles, California
G eorge S. I r v in , D en v er, C olorado




F . T h o m a s Ju s t e r , Ann A rbor, M ichigan
R ic h a r d F. K e r r , C incinnati, O hio
H a r v e y M . K u h n l e y , M in n eap olis, M innesota
T h e R e v . R obert J. M c E w e n , S .J ., C hestnut H ill,
M assach u setts
S t a n L . M u l a r z , C h icago, Illinois
W ill iam J. O ’C o n n o r , Buffalo, New Y ork
M a r g a r e t R e il l y -P e t r o n e , U p p er M ontclair, New Jersey
R e n e R e ix a c h , R och ester, New York
F l o r e n c e M . R ic e , New Y ork , New York
H e n r y B. S c h e c h t e r , W ashington, D .C .
P e t e r D. S c h e l l ie , W ash in gton , D.C.
N a n c y Z. S p il l m a n , L o s A n g eles, California
R ic h a r d A . V a n W in k l e , Salt L ake C ity, U tah
M ary W . W a l k e r , M on roe, G eorgia

A75

Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK, Chairman
branch, orfacility
Zip
Deputy Chairman
BOSTON*................... 02106 Robert P. Henderson
Thomas I. Atkins
NEW YORK* ............ .10045
Buffalo...................... ..14240
PHILADELPHIA
CLEVELAND*

19105
..44101

Cincinnati................. ..45201
Pittsburgh................. ..15230
RICHMOND* .............. 23219
Baltimore................... 21203
Charlotte ................... 28230
Culpeper Communications
and Records Center 22701
ATLANTA ................. 30301
Birmingham ............ 35202
Jacksonville ............ ,32231
Miami ...................... ..33152
Nashville ................. ..37203
New Orleans............ 70161
CHICAGO*................. 60690
Detroit...................... ,,48231
ST. LOUIS ................. ,.63166
Little R ock .............. 72203
Louisville................. 40232
Memphis ................. ..38101
MINNEAPOLIS........

55480

Helena...................... 59601
KANSAS CITY

,.64198

Denver....................... 80217
Oklahoma City.......... ,.73125
Omaha....................... 68102
DALLAS .................... .75222
El Paso....................... 79999
Houston.................... 77001
San Antonio ............. 78295
SAN FRANCISCO

94120

Los Angeles ............. .90051
Portland.................... 97208
Salt Lake C ity .......... 84130
Seattle....................... 98124

President
First Vice President

Vice President
in charge of branch

Frank E. Morris
James A. McIntosh

Robert H. Knight, Esq.
Boris Yavitz
Frederick D. Berkeley, III

Anthony M. Solomon
Thomas M. Timlen

John W. Eckman
Jean A. Crockett

Edward G. Boehne
Richard L. Smoot

J. L. Jackson
William H. Knoell
Martin B. Friedman
Milton G. Hulme, Jr.

Willis J. Winn
Walter H. MacDonald

Maceo A. Sloan
Steven Muller
Joseph H. McLain
Naomi G. Albanese

Robert P. Black
Jimmie R. Monhollon

John T. Keane

Robert E. Showalter
Harold J. Swart

Robert D. McTeer, Jr.
Stuart P. Fishbume
Albert D. Tinkelenberg

William A. Fickling, Jr.
John H. Weitnauer, Jr.
Louis J. Willie
Jerome P. Keuper
Roy W. Vandegrift, Jr.
John C. Bolinger, Jr.
Horatio C. Thompson

William F. Ford
Robert P. Forrestal

John Sagan
Stanton R. Cook
Herbert H. Dow

Vacancy
Daniel M. Doyle

Armand C. Stalnaker
William B. Walton
E. Ray Kemp, Jr.
Sister Eileen M. Egan
Patricia W. Shaw

Lawrence K. Roos
Donald W. Moriarty, Jr.

Stephen F. Keating
William G. Phillips
Norris E. Hanford

E. Gerald Corrigan
Thomas E. Gainor

Paul H. Henson
Doris M. Drury
Caleb B. Hurtt
Christine H. Anthony
Robert G. Lueder

Roger Guffey
Henry R. Czerwinski

Gerald D. Hines
John V. James
Josefina A. Salas-Porras
Jerome L. Howard
Lawrence L. Crum

Robert H. Boykin
William H. Wallace

Cornell C. Maier
Caroline L. Ahmanson
Harvey A. Proctor
John C. Hampton
Wendell J. Ashton
George H. Weyerhaeuser

John J. Balles
John B. Williams

Hiram J. Honea
Charles D. East
F. J. Craven, Jr.
Jeffrey J. Wells
James D. Hawkins

William C. Conrad

John F. Breen
Donald L. Henry
Robert E. Matthews

Betty J. Lindstrom

Wayne W. Martin
William G. Evans
Robert D. Hamilton

Joel L. Koonce, Jr.
J. Z. Rowe
Thomas H. Robertson

Richard C. Dunn
Angelo S. Carella
A. Grant Holman
Gerald R. Kelly

*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016;
Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.




A76

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A77

C o n s u m e r E d u c a t io n P a m p h l e t s
Short pam phlets suitable fo r classroom use. Multiple cop­
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Alice in Debitland
The Board of Governors of the Federal Reserve System
Consumer Handbook To Credit Protection Laws
The Equal Credit Opportunity Act and . . . Age
The Equal Credit Opportunity Act and . . . Credit Rights in
Housing
The Equal Credit Opportunity Act and . . . Doctors, Law­
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cidental Credit
The Equal Credit Opportunity Act and . . . Women
Fair Credit Billing
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Federal Reserve Glossary
How to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You Use A Credit Card
Truth in Leasing
U.S. Currency
What Truth in Lending Means to You
S

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Studies and papers on economic and financial subjects that
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zer. Feb. 1979. 75 pp.
M e a su r e s
Task s,

of

C a pa c it y

U t il iz a t io n : P roblem s

and

by Frank de Leeuw, Lawrence R. Forest, Jr.,
Richard D. Raddock, and Zoltan E. Kenessey. July
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T he G N M A -G u a r a n t e e d P a sst h r o u g h S e c u r it y : M ar ­
k et D e v e l o p m e n t a n d I m p l ic a t io n s fo r t h e
G r o w t h a n d S t a b il it y of H om e M or tg a g e L e n d ­
i n g , by D avid F. Seid ers. D e c . 1979. 65 pp.
F o r e ig n O w n e r s h i p a n d t h e P e r f o r m a n c e o f U.S.
B a n k s , by James V. Houpt. July 1980. 27 pp.
P e r fo r m a n c e a n d C h a r a c t e r ist ic s o f E d g e C orpo ra ­
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B a n k in g S t r u c t u r e a n d P e r f o r m a n c e a t t h e S ta te
L ev e l d u r in g t h e 1970s, by Stephen A. Rhoades. Mar.

1981. 26 pp.

R e p r in t s
M ost o f the articles reprinted do not exceed 12 pages.

Measures of Security Credit. 12/70.
Revision of Bank Credit Series. 12/71.
Assets and Liabilities of Foreign Branches of U.S. Banks.
2/72.
Bank Debits, Deposits, and Deposit Turnover—Revised Se­
ries. 7/72.
Rates on Consumer Instalment Loans. 9/73.
New Series for Large Manufacturing Corporations. 10/73.
The Structure of Margin Credit. 4/75.
Industrial Electric Power Use. 1/76.
Revised Series for Member Bank Deposits and Aggregate Re­
serves. 4/76.
Industrial Production—1976 Revision. 6/76.
Federal Reserve Operations in Payment Mechanisms: A
Summary. 6/76.
The Federal Budget in the 1970’s. 9/78.
Redefining the Monetary Aggregates. 1/79.
Implementation of the International Banking Act. 10/79.
Perspectives on Personal Saving. 8/80.
The Impact of Rising Oil Prices on the Major Foreign Indus­
trial Countries. 10/80.
Federal Reserve and the Payments System: Upgrading Elec­
tronic Capabilities for the 1980s. 2/81.
U.S. International Transactions in 1980. 4/81.
Survey of Finance Companies, 1980. 5/81.

A78

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—

1

D a te o r p e r io d
to w h ich d a ta
re fe r

W eekly R e le a s e s

A p p r o x im a te
r e le a se d a y s

Aggregate Reserves and Member Bank Deposits. H.3 (502) [1.22]

Monday

Week ended previous
Wednesday

Actions of the Board; Applications and Reports. H.2 (501)

Friday

Week ended previous
Saturday

Assets and Liabilities of Domestically Chartered Commercial Banks.
H.8 (510) [1.25]

Tuesday

Wednesday, 2 weeks
earlier

Changes in State Member Banks. K.3 (615)

Tuesday

Week ended previous
Saturday

Factors Affecting Reserves of Depository Institutions and Condition
Statement of Federal Reserve Banks. H.4.1 (503) [1.11]

Friday

Week ended previous
Wednesday

Foreign Exchange Rates. H. 10 (512) [3.28]

Monday

Week ended previous
Friday

Money Stock Measures and Liquid Assets. H.6 (508) [1.21]

Friday

Week ended Wednes­
day of previous week

Selected Borrowings in Immediately Available Funds of Large Member Thursday
Banks. H.5 (507) [1.13]

Week ended Thursday
of previous week

Selectecl Interest Rates. H.15 (519) [1.35]

Monday

Week ended previous
Saturday

Weekly Consolidated Condition Report of Large Commercial Banks
and Domestic Subsidiaries. H.4.2 (504) [1.29]

Friday

Wednesday, 1 week
earlier

Weekly Summary of Banking and Credit Measures. H.9 (511)

Friday

Week ended previous
Wednesday; and
week ended Wednes­
day of previous week

Capacity Utilization: Manufacturing and Materials. G.3 (402) [2.11]

Mid-month

Previous month

Changes in Status of Banks and Branches. G.4.5 (404)

25th of month

Previous month

M o n th ly R e le a s e s

Commercial and Industrial Loans to U.S. Addresses Excluding
1st Wednesday of
Bankers’ Acceptances and Commercial Paper by Industry. G.27 (429)
month

Last Wednesday of pre­
vious month

Consumer Installment Credit. G. 19 (421) [1.56, 1.57]

3rd working day of
month

2nd month previous

Debits and Deposit Turnover at Commercial Banks. G.6 (406) [1.20]

25th of month

Previous month

Finance Companies. G.20 (422) [1.52, 1.53]

5th working day of
month

2nd month previous

Foreign Exchange Rates. G.5 (405) [3.28]

1st of month

Previous month

1. Release dates are those anticipated or usually met. However, please note that for some releases there is normally a certain variability because
of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later
than anticipated.
The B u l l e t i n table that reports these data is designated in brackets.




A79

M o n th ly R e le a s e s — Continued

A p p r o x im a te
r e le a se d a y s

D a te o r p e r io d
to w h ich d a ta
re fe r

Industrial Production. G.12.3 (414) [2.13]

Mid-month

Previous month

Loan Commitments at Selected Large Commercial Banks. G.21 (423)

20th of month

2nd month previous

Loans and Securities at all Commercial Banks. G.7 (407) [1.23]

20th of month

Previous month

Major Nondeposit Funds of Commercial Banks. G.10 (411) [1.24]

20th of month

Previous month

Maturity Distribution of Outstanding Negotiable Time Certificates of
Deposit. G.9 (410)

24th of month

Last Wednesday of pre­
vious month

Research Library—Recent Acquisitions. G.15 (417)

1st of month

Previous month

Selected Interest Rates. G.13 (415) [1.35]

6th of month

Previous month

Summary of Equity Security Transactions. G.16 (418)

Last week of month Release date

Q u a rte rly R e le a s e s
Agricultural Finance Databook E.15 (125)

End of February,
January, April, July, and
May, August, and
October
November

Automobile Credit. E.4 (114)

14th of April, July,
October, and
January

Previous quarter

25th of January,
April, July and
October

2nd month previous

Finance Rates and Other Terms on Selected Types of Consumer
Installment Credit Extended by Major Finance Companies.
E.10 (120)
Flow of Funds: Seasonally adjusted and unadjusted. Z.l (780)
[1.58, 1.59]

15th of February,
Previous quarter
May, August, and
November

Geographical Distribution of Assets and Liabilities of Major Foreign
Branches of U.S. Banks. E .ll (121)

15th of March, June, Previous quarter
September, and
December

Finance Rates on Selected Consumer Installment Loans at Reporting
Commercial Banks. E.12 (122)

15th of March, June, February, May, Au­
September, and
gust, and November
December

Survey of Terms of Bank Lending. E.2 (111) [1.34]

15th of March, June, February, May, Au­
September, and
gust, and November
December

S e m ia n n u a l R e le a s e s
Assets and Liabilities of Commercial Banks, by Classs of Bank. E.3.4
(113) [1.26, 1.27, 1.28]

May and November End of previous De­
cember and June

Check Collection Services-Federal Reserve System. E.9 (119)

February and July

Country Exposure Lending Survey. E. 16 (126)

May and November End of previous De­
cember and June

List of OTC Margin Stocks. E.7 (117)

April and October

Assets, Liabilities, and Capital Accounts of Commercial and Mutual
Savings Banks—Reports of Call (Joint Release of the Federal
Deposit Insurance Corporation, the Board of Governors of the
Federal Reserve System, and Office of the Comptroller of the
Currency. Published and distributed by FDIC.)

May and November End of previous De­
cember and June




Previous 6 months

Release date

A80

A n n u a l R e le a s e s

A p p r o x im a te
r e le a se d a y s

D a te o r p e r io d
to w h ich d a ta
re fe r

Aggregate Summaries of Annual Surveys of Security Credit Extension. February
C.2 (101)

End of previous June

Bank Holding Companies and Subsidiary Banks. C.6 (105)

March

Previous year

Insured Bank Income by Size of Bank. C.4 (103)

End of May

Previous year




A81

Index to Statistical Tables
R e fe r e n c e s a re to p a g e s A -3 th rou gh A -71 a lth o u g h th e p re fix “A " is o m itte d in th is in d ex
ACCEPTANCES, bankers, 10, 23, 25
Agricultural loans, commercial banks, 18,19, 20, 24
Assets and liabilities (See also Foreigners)
Banks, by classes, 17, 18-21, 27
Domestic finance companies, 37
Federal Reserve Banks, 11
Foreign banks, U.S. branches and agencies, 68-71
Nonfinancial corporations, current, 36
Automobiles
Consumer installment credit, 40,41
Production, 46,47
BANKERS balances, 17, 18-20 {See also Foreigners)
Banks for Cooperatives, 33
Bonds (See also U.S. government securities)
New issues, 34
Yields, 3
Branch banks, 15, 21, 54, 68-71
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 36
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 44
Capital accounts
Banks, by classes, 17
Federal Reserve Banks, 11
Central banks, 66
Certificates of deposit, 21,25
Commercial and industrial loans
Commercial banks, 15, 24
Weekly reporting banks, 18-21,22
Commercial banks
Assets and liabilities, 3, 15, 17, 18-21
Business loans, 24
Commercial and industrial loans, 22,24
Consumer loans held, by type, 40,41
Loans sold outright, 21
Nondeposit funds, 16
Number, 17
Real estate mortgages held, by holder and property, 39
Commercial paper, 3, 23, 25,37
Condition statements (See Assets and liabilities)
Construction, 44,48
Consumer installment credit, 40,41
Consumer prices, 44, 49
Consumption expenditures, 50,51
Corporations
Profits and their distribution, 35
Security issues, 34, 63
Cost of living (See Consumer prices)
Credit unions, 27,40,41
Currency and coin, 5, 17
Currency in circulation, 4,13
Customer credit, stock market, 26
DEBITS to deposit accounts, 12
Debt (See specific types o f debt or securities)
Demand deposits
Adjusted, commercial banks, 12,14
Banks, by classes, 17, 18-21
Ownership by individuals, partnerships, and
corporations, 23




Demand deposits—Continued
Subject to reserve requirements, 14
Turnover, 12
Depository institutions
Reserve requirements, 8
Reserves, 3, 4, 5, 14
Deposits (See also specific types)
Banks, by classes, 3, 17, 18-21, 27
Federal Reserve B a n k s , 11
Turnover, 12
Discount rates at Reserve Banks (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 44, 45
Eurodollars, 25
FARM mortgage loans, 39
Farmers Home Administration, 39
Federal agency obligations, 4,10, 11, 12, 32
Federal and federally sponsored credit agencies, 33
Federal finance
Debt subject to statutory limitation and types and
ownership of gross debt, 30
Receipts and outlays, 28,29
Treasury operating balance, 28
Federal Financing Bank, 28,33
Federal funds, 3,6, 18, 19, 20,25, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 38, 39
Federal Housing Administration, 33, 38, 39
Federal Intermediate Credit Banks, 33
Federal Land Banks, 33, 39
Federal National Mortgage Association, 33, 38, 39
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U.S. government securities held, 4, 11, 12, 30, 31
Federal Reserve credit, 4, 5,11, 12
Federal Reserve notes, 11
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 37
Business credit, 37
Loans, 18, 19, 20, 40, 41
Paper, 23,25
Financial institutions, loans to, 18, 19, 20
Float, 4
Flow of funds, 42,43
Foreign
Banks, assets and liabilities of U.S. branches and
agencies, 68-71
Currency operations, 11
Deposits in U.S. banks, 4,11,18,19,20
Exchange rates, 66
Trade,53
Foreigners
Claims on, 54,56, 59,60,61,65
Liabilities to, 21, 54-58, 62-64
GOLD
Certificates, 11
Stock, 4,53

A82

Government National Mortgage Association, 33, 38, 39
Gross national product, 50, 51
HOUSING, new and existing units, 48
INCOME, personal and national, 44, 50, 51
Industrial production, 44,46
Installment loans, 40, 41
Insurance companies, 27, 30, 31, 39
Interbank loans and deposits, 17
Interest rates
Bonds, 3
Business loans of banks, 24
Federal Reserve Banks, 3,7
Foreign countries, 66
Money and capital markets, 3, 25
Mortgages, 3, 38
Prime rate, commercial banks, 24
Time and savings deposits, 9
International capital transactions of the United States, 54-65
International organizations, 54-59, 62-65
Inventories, 50
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 17, 27
Commercial banks, 3, 15, 17, 18-20
Federal Reserve Banks, 11,12
Life insurance companies, 27
Savings and loan associations, 27
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 17,18-21,27
Commercial banks, 3, 15, 17, 18-21, 22, 24
Federal Reserve Banks, 3,4, 5,7,11, i2
Insurance companies, 27, 39
Insured or guaranteed by United States, 38, 39
Savings and loan associations, 27
MANUFACTURING
Capacity utilization, 44
Production, 44, 47
Margin requirements, 26
Member banks
Assets and liabilities, by classes, 17
Borrowings at Federal Reserve Banks, 5,11
Federal funds and repurchase agreements, 6
Reserve requirements, 8
Reserves and related items, 14
Mining production, 47
Mobile home shipments, 48
Monetary aggregates, 3, 14
Money and capital market rates (See Interest rates)
Money stock measures and components, 3,13
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 3, 9,18-20, 27, 30, 31, 39
NATIONAL defense outlays, 29
National income, 50
OPEN market transactions, 10
PERSONAL income, 51
Prices
Consumer and producer, 44, 49
Stock market, 26
Prime rate, commercial banks, 24
Production, 44,46
Profits, corporate, 35




REAL estate loans
Banks, by classes, 18-20,27, 29
Life insurance companies, 27
Mortgage terms, yields, and activity, 3, 38
Type of holder and property mortgaged, 39
Repurchase agreements and federal funds, 6, 18, 19, 20
Reserve requirements, 8
Reserves
Commercial banks, 17
Depository institutions, 3, 4, 5, 14
Federal Reserve Banks, 11
Member banks, 14
U.S. reserve assets, 53
Residential mortgage loans, 38
Retail credit and retail sales, 40, 41, 44
SAVING
Row of funds, 42, 43
National income accounts, 51
Savings and loan assns., 3, 9,27, 31, 39,42
Savings deposits (See Time deposits)
Savings institutions, selected assets, 27
Securities (See also U.S. government securities)
Federal and federally sponsored agencies, 33
Foreign transactions, 63
New issues, 34
Prices, 26
Special drawing rights, 4,11, 52, 53
State and local governments
Deposits, 18, 19, 20
Holdings of U.S. government securities, 30, 31
New security issues, 34
Ownership of securities of, 18, 19, 20, 27
Yields of securities, 3
Stock market, 26
Stocks (See also Securities)
New issues, 34
Prices, 26
TAX receipts, federal, 29
Time deposits, 3, 9, 12, 14, 17, 18-21
Trade, foreign, 53
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 11, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. balance of payments, 52
U.S. government balances
Commercial bank holdings, 18, 19, 20
Member bank holdings, 14
Treasury deposits at Reserve Banks, 4,11, 28
U.S. government securities
Bank holdings, 17, 18-20, 27, 30, 31
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 11, 12, 30, 31
Foreign and international holdings and transactions, 11,
30, 62
Open market transactions, 10
Outstanding, by type and ownership, 30, 31
Rates, 3, 25
Utilities, production, 47
VETERANS Administration, 38, 39
WEEKLY reporting banks, 18-22
Wholesale (producer) prices, 44,49
YIELDS (See Interest rates)

A83

The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories

M

in n e a p o lis

Detroit

C le je 'V i

C h ic a g o

Omaha*

\ Salt Lake City

K a n s a s

Louisville

C ity

if. L

o u is

SashvilU

'"getes
ittle Rock

Birmingham^®ia n fa

Houston,
tan Antonio

ALASKA

Legend

Boundaries of Federal Reserve Districts

Federal Reserve Bank Cities

Boundaries of Federal Reserve Branch
Territories

Federal Reserve Branch Cities
Federal Reserve Bank Facility

©

Board of Governors o f the Federal Reserve
System