Full text of Federal Reserve Bulletin : June 1982
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VOLUME 6 8 •
NUMBER 6 •
JUNE 1 9 8 2
FEDERAL RESERVE
BULLETIN
Board of Governors of the Federal Reserve System
Washington, D.C.
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Stephen H. Axilrod • Michael Bradfield
John M. Denkler • Janet O. Hart • James L. Kichline • Edwin M. Truman
Naomi P. Salus,
Coordinator
The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Unit headed by Mendelle T. Berenson,
the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Helen L. Hulen.
Table of Contents
327 THE COMMERCIAL PAPER MARKET
SINCE THE MID-SEVENTIES
Board supports the bill's restriction on
ownership interests in export trading companies to bank holding companies and Edge
corporations, before the Subcommittee on
Financial Institutions Supervision, Regulation and Insurance of the House Committee
on Banking, Finance and Urban Affairs,
May 19, 1982.
Because of increased activity by both new
and existing issuers, the volume of commercial paper outstanding has more than tripled
since the mid-1970s.
335 FINANCIAL DEVELOPMENTS OF
BANK HOLDING COMPANIES IN 1981
The overall performance of bank holding
companies was reasonably good last year,
in spite of the difficult and unsettled economic environment.
341 TREAS UR Y AND FEDERAL RESERVE
FOREIGN EXCHANGE OPERATIONS:
INTERIM REPORT
The U.S. dollar ended the February-April
period higher on balance against all major
currencies except the German mark, which
benefited from a positive shift in market
sentiment and strengthened across the
board.
345 STAFF STUDIES
"The
Credit
intent
tween
cation
serve.
Community Reinvestment Act and
Allocation" reviews the legislative
of the act and the relationship becongressional intent and credit alloas implemented by the Federal Re-
347 INDUSTRIAL
PRODUCTION
Output declined about 0.2 percent in May.
349 STATEMENTS TO CONGRESS
Henry C. Wallich, Member, Board of Governors, testifies on a bill that would facilitate the establishment and operation of export trading companies and says that the
353 Preston Martin, Vice Chairman, Board of
Governors, presents the Board's views on
the Capital Assistance Act of 1982 and on
the Deposit Insurance Flexibility Act, two
bills that address the current problems of
the thrift industry, and says that the Board
supports the objectives of these bills, before
the Senate Committee on Banking, Housing, and Urban Affairs, May 26, 1982.
356 J. Charles Partee, Member, Board of Governors, discusses the current financial condition of the nation's businesses and says
that the Federal Reserve believes that financial conditions will improve gradually as
the economy begins to grow on a less
inflationary path, before the Subcommittee
on Domestic Monetary Policy of the House
Committee on Banking, Finance and Urban
Affairs, May 26, 1982.
361
ANNOUNCEMENTS
Adoption of criteria for determining whether debt securities issued by state member
banks and bank holding companies with a
mandatory requirement for future conversion to equity can qualify as primary capital
in assessing capital adequacy.
Request for nominations to the Consumer
Advisory Council.
Amendments to the Board's margin regulations that change the criteria for inclusion
on the Board's list of stocks traded over the
counter. (See Legal Developments.)
strength of other aggregates. The intermeeting range for the federal funds rate, which
provides a mechanism for initiating further
consultation of the Committee, was set at
12 to 16 percent.
Amendment to Regulation T to broaden the
types of collateral against which brokers
and dealers may borrow and lend securities.
(See Legal Developments.)
Proposed interpretations concerning credit
scoring.
371 LEGAL
Changes in Board staff.
Amendments to Regulations D, H, G, T,
and U; bank holding company and bank
merger orders; and pending cases.
Admission of two state banks to membership in the Federal Reserve System.
364 RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET COMMITTEE
At its meeting on March 29-30, 1982, the
Committee decided to seek behavior of
reserve aggregates associated with growth
of Ml and M2 from March to June at annual
rates of about 3 percent and 8 percent
respectively. It was understood that most,
if not all, of the expansion in Ml over the
period might well occur in April, and within
limits, an April bulge in Ml alone should
not be strongly resisted. In any event, it
was agreed that deviations from those targets should be evaluated in light of the
probability that over the period, M2 would
be less affected than Ml by deposit shifts
related to the mid-April tax date and by
changes in the relative importance of NOW
accounts as a savings vehicle. Some shortfall in growth of M l , consistent with progress toward the upper part of the range for
the year as a whole, would be acceptable in
the context of appreciably reduced pressures in the money market and relative
DEVELOPMENTS
Al
FINANCIAL AND B USINESS STA TISTICS
A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A54 International Statistics
A69 GUIDE TO TABULAR PRESENTATION,
STATISTICAL RELEASES, AND SPECIAL
TABLES
A70 BOARD OF GOVERNORS AND STAFF
A72 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY COUNCILS
A73 FEDERAL RESERVE BANKS,
BRANCHES, AND OFFICES
A74 FEDERAL RESERVE BOARD
PUBLICATIONS
A79 INDEX TO STATISTICAL TABLES
A8l MAP OF FEDERAL RESERVE SYSTEM
The Commercial Paper Market
since the Mid-Seventies
This article was prepared by Evelyn M. Hurley,
of the Capital Markets Section of the Board's
Division of Research and Statistics.
Over the past decade more and more corporations have turned to the commercial paper market to obtain short-term credit. About 500 new
companies have begun to issue commercial paper since 1974, bringing the total number of
issuers to 1,200. Many of the new entrants are
industrial concerns—mostly of medium size—
that have found it advantageous to borrow
through paper backed by letters of credit. Another important development since the mid-1970s
has been the appearance of foreign issuers,
which previously had been virtually unknown in
the commercial paper market; several tax-exempt entities also have issued paper in the last
few years. As a consequence of increased activity by both new and previous issuers, the total
volume of paper outstanding has more than tripled since the mid-1970s to slightly more than
$170 billion (table 1 and chart 1).
Purchases by money market mutual funds
have facilitated this expansion, particularly over
the past two years. Since the late 1970s money
funds have expanded tremendously as the public
has shifted funds out of deposits with regulated
rates into short-term assets paying market yields.
Other investors in commercial paper are bank
trust departments and, in much smaller amounts,
life insurance companies, pension funds, and
nonfinancial corporations. Individuals buying on
their own account are thought to play only a
minor role.
Like most financial markets, the commercial
paper market has experienced a great deal of
short-run variability in both interest rates and
issuance over the past two or three years (chart
2). Moreover, business firms in the aggregate
have experienced some of the most severe finan
cial distress of the postwar era during this period.
In spite of these difficulties, the paper market has
functioned smoothly. In 1970 and 1974, also
years of weak economic activity and high interest rates, the flow of credit through the commercial paper market was disrupted for many lowerrated companies by the highly publicized
difficulties of a few issuers. Apparently, in the
current period, rating agencies and dealers alike
are maintaining close surveillance of the creditworthiness of individual issuers, and market
participants thus have become more efficient in
identifying problem firms at a stage when such
firms can withdraw from the paper market in an
orderly fashion. In addition, mechanisms to support the market in the form of bank lines and
letters of credit are more firmly established now
than in the early and mid-1970s.
1. Commercial paper outstanding
Seasonally adjusted, in billions of dollars except as noted
Type
Total1
Dec. 31,
1974
Apr. 30,
1982
Percent
increase
50.0
171.4
242.8
Financial firms
Dealer-placed
Bank-related
Other
Directly placed
Bank-related
Other
36.5
4.6
1.8
2.7
32.0
6.5
25.5
114.0
32.8
8.3
24.6
81.2
29.0
52.2
212.3
613.0
361.1
811.1
153.8
346.2
104.7
Nonfinancial firms
13.5
57.4
325.2
1. Components may not add to totals because of rounding.
This article discusses current operational aspects of the commercial paper market, highlighting changes since the mid-1970s. For further
technical details on both the operation of the
market and its history through the mid-1970s, see
"The Commercial Paper Market," in the F E D E R A L R E S E R V E B U L L E T I N , vol. 6 3 (June 1977),
pages 5 2 5 - 3 6 .
328
Federal Reserve Bulletin • June 1982
1. Commercial paper outstanding
ISSUERS
The companies issuing commercial paper tend to
be financially strong, highly rated firms. They
usually arrange forms of indirect assurance, such
as backing by bank lines and letters of credit,
that the debt will be repaid at maturity. These
firms have found the commercial paper market to
be a relatively convenient, inexpensive, and flexible source of short-term financing. This market
has proved especially attractive in recent years,
when the long-term debt market often has been
unattractive.
Direct
Issuers
Until recently, most commercial paper was sold
directly to investors by the issuing firm; but
directly issued paper, though growing in dollar
volume, has been declining in relative importance for several years (table 2 and chart 1). For
the most part, direct placers are large finance
companies and medium- to large-sized bank
holding companies that are highly rated and need
large amounts of short-term funds on a continuous basis. About 60 such issuers are rated by
Moody's Investors Service. Borrowing must be
sizable to justify the substantial fixed costs of
distributing paper without dealer assistance. As a
result, issuers seldom find it economical to place
paper directly unless the average monthly
amount issued exceeds $1 billion. Operating on
this scale, firms find that reductions in the cost of
borrowing, including the elimination of dealers'
fees, justify the expense of setting up a marketing
department and maintaining relationships with
investors, which may involve the issuance of
paper to meet investors' needs even when the
funds are not required. Direct placers also gain
some flexibility in adjusting interest rates and
maturities.
Finance companies that are direct issuers
sometimes use the master note agreement, an
arrangement whereby notes are sold to large,
steady suppliers of funds. Under these agreements, the investor—usually a bank trust department—makes daily purchases of commercial paper, payable on demand, up to some
predetermined amount. Each day the trust department tells the issuer the amount of paper it
will take under the master note. Although the
amount outstanding may fluctuate from day to
day, interest is usually payable on the average
daily balance for the month at the 180-day commercial paper rate. Over the past five years, the
amount of paper placed through master notes has
dropped from about 20 percent to 12 percent of
all paper placed directly by finance companies,
largely because some of the companies active in
issuing master notes have experienced financial
difficulties, necessitating a reduction in their
issuance or even their withdrawal from the market.
2. Business-cycle comparisons of
commercial paper outstanding
Peaks and troughs are those established by the National Bureau of
Economic Research, Inc.
The Commercial
2. Directly placed commercial paper outstanding,
by type
Seasonally adjusted, in billions of dollars except as noted
End of
period
Total
Total
commercial directly Nonbank
placed 1
paper
Bankrelated
Directly
placed as
percent of
total
commercial
paper
1970
1971
1972
1973
1974
33.4
32.4
35.1
41.6
50.0
20.5
20.7
22.2
27.3
32.0
18.5
19.2
20.8
24.4
25.5
2.0
1.4
1.4
2.9
6.5
61.4
63.9
63.2
65.6
64.0
1975
1976
1977
1978
1979
48.4
52.9
65.1
83.4
112.8
31.4
32.6
40.6
51.6
64.8
24.5
26.6
33.5
39.3
47.2
6.9
6.0
7.1
12.3
17.6
64.9
61.6
62.4
61.9
57.4
1980
1981
1982
Jan
Feb. . . .
Mar. . . .
Apr. . . .
124.5
165.5
67.9
81.7
45.5
54.7
22.4
26.9
54.5
49.4
165.1
164.7
166.3
171.4
80.3
79.1
77.9
81.2
51.8
51.9
50.7
52.2
28.6
27.2
27.2
29.0
48.6
48.0
46.8
47.4
1. Components may not add to totals because of rounding.
Dealer-Placed
Issues
As of the end of April 1982 more than half of the
commercial paper outstanding was placed
through dealers (table 3). This proportion has
risen steadily since the mid-1970s, when less
than two-fifths of the total was sold through
dealers (chart 1). For a variety of reasons, most
Paper Market since the Mid-Seventies
329
issuers find it advantageous to engage the services of dealers rather than to place their paper
directly. The issuers may not be nationally
known, for one thing, or their short-term financing needs may not be large or regular. Under
these circumstances, the issuer generally will
find that it cannot justify the expense of selling
directly, and it may in any event prefer to rely on
the dealer's contacts to market the paper.
Of the issuers in the dealer market, most are
nonfinancial concerns—principally industrial
companies, public utilities, and foreign nonfinancial entities. Nonfinancial commercial paper now
accounts for nearly two-thirds of all dealerplaced paper. As interest rates in bond markets
have remained both high and variable, in recent
years many of these firms have avoided issuance
of long-term debt in significant volume; depressed stock prices have also discouraged equity financing lately. In this environment, commercial paper has offered a convenient source of
"bridge financing" for firms awaiting an improvement in conditions of longer-term markets;
and because that improvement has failed to
materialize, corporations have rolled over paper
as it has matured.
One factor that has facilitated growth in paper
issuance by nonfinancial firms has been the
increasing use of letters of credit and related
devices to assure payment at maturity. Letters of
3. Dealer-placed commercial paper outstanding, by type
Seasonally adjusted, in billions of dollars except as noted
Financial
Total dealerplaced as percent
of total
commercial
paper
Total
commercial
paper
Total
dealerplaced 1
Nonfinancial
Total
Nonbank
Bankrelated
1970
1971
1972
1973
1974
33.4
32.4
35.1
41.6
50.0
12.9
11.8
12.9
14.3
18.0
7.5
6.6
7.3
8.9
13.5
5.4
5.2
5.6
5.4
4.6
5.1
4.7
4.3
3.5
2.7
.4
.5
1.2
1.9
1.8
38.6
36.4
36.8
34.4
36.0
1975
1976
1977
1978
1979
48.4
52.9
65.1
83.4
112.8
17.0
20.4
24.5
31.8
48.0
10.8
13.2
15.7
19.6
30.7
6.2
7.2
8.8
12.2
17.4
4.4
5.3
6.7
8.7
14.6
1.8
1.9
2.1
3.5
2.8
35.1
38.6
37.6
38.1
42.6
1980
1981
1982
Jan
Feb
Mar
Apr
124.5
165.5
56.7
83.8
36.9
53.7
19.8
30.2
16.2
24.1
3.6
6.0
45.5
50.6
165.1
164.7
166.3
171.4
84.8
85.6
88.4
90.3
55.4
55.5
56.8
57.4
29.3
30.1
31.6
32.8
22.8
23.2
24.1
24.6
6.5
6.9
7.4
8.3
51.4
52.0
53.2
52.7
End of period
1. Components may not add to totals because of rounding.
330
Federal Reserve Bulletin • June 1982
credit for this purpose appeared in the early
1970s, but they declined to a low level after the
three federal banking regulatory agencies placed
restrictions on their issuance in 1974. However,
in late 1980, as interest rates rebounded in both
the long- and the short-term debt markets, dealers began to interest new issuers, particularly
lower-rated firms, in letters of credit. In such
circumstances, rating agencies usually assign the
rating of the bank or guarantor to the paper
rather than the lower rating of the issuer. Thus
the issuer avoids payment of a very high premium in interest rates and in some instances gains
entrance to the market that might otherwise have
been denied. For their part, banks earn additional fixed fees in issuing such backing.
Foreign Issuers. The entry of foreign issuers
has been another significant development in the
commercial paper market over the past decade.
These entities were only meagerly represented in
the mid-1970s, but 39 foreign nonfinancial firms
and 51 foreign banks had commercial paper
ratings by April 1982 (table 4). These foreign
companies had an estimated $12 billion of commercial paper outstanding, of which foreign
banks accounted for a little less than 60 percent.
Foreign entities have entered the U.S. market to
broaden their sources of funds and at times to
obtain a cheaper source of dollar financing.
Governmental Issuers. In recent years some
states and municipalities have also issued shortterm obligations often referred to as tax-exempt
commercial paper. Because rates are comparable
to those on other tax-exempt securities of the
same maturity, rather than those of taxable securities, such paper obviously will appeal mainly to
investors that otherwise would buy municipal
short-term notes. Also, in sale and distribution,
tax-exempt paper differs from the commercial
paper of business firms. For example, the paper
is usually sold through the municipal departments rather than the commercial paper desks of
dealers, and the paper is often given a municipal
rating rather than a commercial paper rating.
Accordingly, like other publishers of data on
financial instruments, the Federal Reserve classifies this instrument not as commercial paper
but as short-term municipal debt. Reportedly,
about $ 1 '/2 billion of such paper is now outstanding.
Major financial issuers in the dealer market are
finance companies (frequently subsidiaries of
manufacturers and retailers), medium-sized bank
holding companies, and foreign banks; mortgage
companies and insurance companies issue smaller amounts. Savings and loan associations also
began to apply for credit ratings in 1979 with the
approval of the Federal Home Loan Bank Board.
The sale of paper was intended as a temporary
source of funds for these institutions until permanent financing of mortgages became available.
However, in view of the well-publicized earnings
problems of thrift institutions, many associations
that obtained ratings encountered resistance by
investors and never issued paper. As a result
only about $100 million of such paper is currently
outstanding.
MARKET MECHANISM
Nine major dealers provide distribution and intermediary services for the commercial paper
market. (This article does not discuss the several
banks that act as agents for the sale of paper for
some companies. Litigation challenging the legality of this activity for banks is still pending.)
Most dealers are located in N e w York City, and
commercial paper is but one of the instruments in
which they deal. Their fees depend to some
extent on how much paper an issuer sells over
some interval, typically six months to one year,
but the charge usually averages somewhat less
than V% percentage point at an annual rate.
Ordinarily, dealers buy paper from issuers and
try to resell the notes the same day. Any paper
not sold immediately is taken into inventory and
usually turned over in six to ten days. Inventories are financed either by overnight repurchase agreements or by overnight loans from
banks.
Unlike direct placers, dealers may not be able
to accept all of the money that, on any given day,
investors wish to place in the obligations of a
particular company, nor do they have direct
The Commercial Paper Market since the Mid-Seventies
control over maturities; they sell only the paper
that they have purchased that day or the paper
from their inventory. (Direct placers often reduce rates to discourage investors, but, as noted
earlier, they sometimes accommodate large orders from investors even when they do not need
all the funds.) To satisfy investors' demands,
dealers may relay to issuers any special orders or
requests they receive specifying the quantity and
maturity of paper, but the issuer makes the final
decision on these matters and makes no commitment to issue regularly. Also, there are no established secondary markets for either dealerplaced or directly placed paper. If an investor is
hard pressed, the dealer customarily will buy
back the paper and hold it in inventory as a
service to both the issuer and the investor.
Among direct placers, finance companies redeem on a similar basis.
Ratings
Five rating services currently evaluate commercial paper: Moody's Investors Service; Standard
& Poor's Corporation; Fitch Investors Service;
Duff and Phelps, Inc.; and McCarthy, Crisanti,
Maffei, Inc. The first four charge a fee to the
issuing company, while McCarthy charges the
investors that subscribe to its service rather than
the issuer. Unlike those of the other four services, McCarthy's ratings reflect the overall
quality of a company's short-term debt rather
than just its paper. As in the bond market,
Moody's and Standard & Poor's are the two
biggest agencies. Moody's rates the paper of
more than 900 issuers, and Standard & Poor's
rates the paper of more than 1,000 issuers. Most
of those rated by the other three rating services
are also rated by one or both of these two. Table
4 gives the ratings by industry of the 1,200
issuers that have commercial paper ratings.
The classification systems used by the various
services tend to be less detailed than those used
in bond ratings; the two major services use
simple numerical schemes to distinguish three or
four basic categories. Unrated or lower-rated
paper is not easily sold, and only the paper with
the highest ratings by Moody's or Standard &
331
4. Number of companies with selected commercial
paper ratings, by industry, April 1982'
Public utilities
Financial
companies 3
Bank holding
companies
Real estate
investment trusts
Insurance firms . . .
Transportation
firms
Leasing firms
Foreign banking
institutions . . .
Foreign nonbanks
T t l 2
Total 2
1. Based on listings of Moody's Investors Service, Standard &
Poor's Corporation, and Fitch Investors Service. Paper is rated Prime
1 (P-l), Prime 2 (P-2), or Prime 3 (P-3) by Moody's; A-l + , A - l , A-2, or
A-3 by Standard & Poor's; F - l , F-2, or F-3 by Fitch. Each service
gives the "1" rating to the highest-quality paper and the "3" to the
lowest. The ratings most looked for by investors are the A-l or P-l
ratings.
2. If a company is rated by Moody's, that service's rating is used
for the total. If it is not rated by Moody's, then Standard & Poor's
rating is used. If the company is rated only by Fitch, that service's
rating is used.
3. Includes finance companies, saving and loan associations, and
mortgage bankers.
Poor's is readily accepted. Paper with an A-3 or
P-3 rating does sell occasionally, depending on
the general reputation of the issuer and the
interest rate premium.
Commercial paper with a given rating will pay
a higher or a lower yield depending on the ratings
assigned to the issuer's bonds; the higher the
rating, the lower the yield on commercial paper.
Paper backed by letters of credit of banks and insurance companies or guaranteed by parent companies usually receives the rating of the bank or
guarantor from the rating agencies. In general,
issuers of paper or of letters of credit, or the parent companies, have bonds outstanding that are
rated minimum investment grade or better.
Since 1977, ratings have affected the net capital requirements of the dealer that handles such
paper as well as the acceptability of an offering.
According to a ruling by the Securities and
Exchange Commission, a dealer who takes into
inventory the paper of an issuer that does not
have ratings from two rating services must protect its solvency by "writing down" the value of
this paper by an amount that varies from 15 to 30
332
Federal Reserve Bulletin • June 1982
percent. In view of this requirement, most dealers now require issuers to maintain two ratings.
A larger proportion of the companies have the
higher ratings in today's commercial paper market than in the mid-1970s, largely because of the
more widespread use of letters of credit. According to Moody's Investors Service, barely half of
the firms rated in February 1974 had the highest
rating; in contrast, more than three-quarters of
its clients enjoyed top ratings in December 1981
(table 5). Many issuers that were forced to leave
the market in 1974 and to return to their banks
for financing because of poor commercial paper
ratings have not reentered the market. Instead, a
whole new crop of issuers has appeared with
higher ratings.
5. Number of commercial paper issuers rated by
Moody's Investors Service, selected dates
M ,
Total
Feb. 4,
1974
Dec. 1,
1981'
344
231
38
613
700
206
16
922
1. Excludes municipal commercial paper ratings.
New Issuers
and Other
and Special
Mechanisms
Guarantees
The largest group of new issuers comprises relatively small companies that have entered with
backing for their paper from banks, insurance
companies, and parents. Most of the paper supported by letters of credit is used by specialpurpose companies such as nuclear fuel companies, by mortgage companies, and by other
relatively weak companies that otherwise either
would be excluded from the market or would be
forced to pay high premiums. (Nuclear fuel companies are set up as subsidiaries of dealers,
banks, or electric and gas utilities for the sole
purpose of providing and financing nuclear fuel
for the utilities.) The increased use of letters of
credit thus has permitted lower-rated issuers to
maintain or gain access to the market at manageable costs of borrowing. Even companies with
paper rated A-2 or P-2 and with letters of credit
pay a smaller premium on interest rates today
than did the A-2 or P-2 issuers of the 1974 period,
3. Spread in rates on commercial paper
1974
1976
1978
1980
1982
Rate spread is the rate on medium-grade less the rate on high-grade
commercial paper calculated from rates charged by two major dealers
for dealer-placed 30- to 59-day paper; ratings for medium-grade, A-2
or P-2, and for high grade, A-l or P-l.
which usually did not have letters of credit
backing the paper. Thus although the yield
spread between paper issues of the strongest and
the weakest quality has been wider in the past
two to three years than from 1975 to 1980, it has
never been so wide as in the 1973-75 recession
(chart 3).
While the expanded use of letters of credit is a
well-established fact, no comprehensive data exist on the amount of paper being supported by
these arrangements. To some extent, this lack of
data reflects the proliferation of arrangements
between financial institutions and issuers. Traditionally, borrowers have attached to each commercial paper note a letter of credit backing that
particular obligation, the so-called documented
discount note; the letter assures the investor that
the issuer of the letter of credit will pay the note
if the issuer of the paper cannot do so. Recently,
however, issuers of letters of credit have begun
to provide a single, "master" letter of credit
stating the total amount of credit to be extended
on the notes of a given company; this obligation
is referred to on each note issued.
Some paper is also being supported by "irrevocable commitments to lend" on the part of the
lending institution. Under this arrangement, the
bank agrees to lend the issuing company funds to
cover notes outstanding up to a certain amount, a
somewhat less firm assurance of payment than is
the letter of credit, which stipulates that funds
will be paid directly to the note holders. The size
of the loan, like that of any other loan, must
satisfy bank capital requirements.
The Commercial
In addition to letters of credit, since 1977
banks have provided a means of financing for
corporations that has proved both competitive to
and a support mechanism for the commercial
paper market. This is the "below prime" loan of
very short-term maturity now offered by many
banks. Basically, for a short period of time—as
short as overnight—the bank provides funds at a
rate that is Vs to V2 of a percentage point above
what the bank pays for the funds. That margin
depends on the individual bank and on the creditworthiness of the borrower.
During brief periods, when the rates on commercial paper are rising more rapidly than the
rates charged by banks, issuers will use belowprime loans rather than pay the rates in the
commercial paper market. For the most part,
however, these below-prime loans have provided
low-priced funds to companies that have faced
temporary impediments to raising funds in the
commercial paper market. The important users
of these loans have been companies issuing paper directly. If these companies fail to meet their
goals on a particular day, they use the belowprime facilities overnight. In other instances, to
avoid paying a premium in the commercial paper
market for selling a large amount of paper in one
or two days, a large issuer will use the bank
facility and spread the sale of the paper over a
longer period of time. For further discussion of
below-prime lending, see "Changes in Bank
Lending Practices, 1 9 7 9 - 8 1 , " F E D E R A L R E S E R V E B U L L E T I N , volume 6 7 (September 1 9 8 1 ) ,
pages 6 7 1 - 8 6 .
In summary, the banking system provides the
commercial paper market with several means of
safeguarding issuers and investors alike. First, it
offers lines of credit to commercial paper issuers
to back their paper; funds made available under
these lines have enabled companies experiencing
difficulties to withdraw from the market, thereby
preventing disruptions in financial markets. Second, it extends letters of credit as backing for the
paper of lesser-known or less creditworthy companies, allowing them access to the commercial
paper market and at a higher rating than they
would otherwise have. Third, by providing the
below-prime loan, it helps stabilize interest rates
and thus prevents a flood of demands for funds in
the market on a given day.
Paper Market since the Mid-Seventies
333
INVESTORS
The tripling of commercial paper outstanding
since the mid-seventies has been facilitated by a
sizable shift in investor preferences toward
short-term assets paying market rates of interest.
In an uncertain financial climate investors have
sought to minimize the risk to capital value by
buying instruments with shorter maturities; this
objective has been satisfied increasingly outside
depository institutions because of the rise in
market yields relative to rates permitted on many
deposit categories. The dramatic growth in money market mutual funds is perhaps the most
obvious manifestation of these developments,
•/••int.- •
6. Number, total assets, and commercial paper
holdings of money market mutual funds
Not seasonally adjusted, in billions of dollars except as noted
End
of period
Commercial
paper as percent of total
assets
Number
of funds
Total
assets
Commercial
paper
..
..
..
..
50
61
76
96
3.9
10.9
45.2
74.4
.9
2.9
14.5
25.0
23.1
26.6
32.1
33.6
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
98
103
107
116
117
121
131
134
145
147
157
159
85.0
96.7
111.5
118.4
117.9
126.5
139.4
149.4
160.8
169.6
181.6
181.9
29.6
32.0
36.0
39.9
39.2
45.5
50.2
52.6
58.4
60.0
61.3
56.8
34.8
33.1
32.3
33.7
33.2
36.0
36.0
35.2
36.3
35.4
33.8
31.2
163
175
182
198
187.2
186.2
191.0
192.0
1977
1978
1979
1980
1981
1982
Jan.
Feb.
Mar.
Apr.
59.2
56.0
57.6
61.4
31.6
30.1
30.2
32.0
In December 1977 there were 50 money market fufids, with total assets of about $4 billion
(table 6). By April 1982 the number had grown to
almost 200 funds, with assets of nearly $200
billion. Over that same period the money market
funds increased their holdings of commercial
paper from less than $1 billion to more than $60
billion. Today those funds hold more than onethird of all paper outstanding, and since the end
of 1978 their paper holdings have accounted for
two-thirds of the growth in the commercial paper
market.
334
Federal Reserve Bulletin • June 1982
Although the funds hold a sizable amount of
paper, they are very quality conscious and usually will buy only A-l- or P-l-rated paper. They
usually also require issuers of commercial paper
to have bond ratings of at least A. These funds
are important investors in the markets for both
dealer-placed and directly placed paper. Recently, however, they have tended to allocate a
greater portion of their assets to Treasury bills
while reducing the share devoted to commercial
paper. Nevertheless, in the aggregate, commercial paper still constitutes by far the largest single
category of money market fund assets.
Other investors include bank trust departments and, to a much lesser extent, life insurance
companies, pension funds, nonprofit organizations, and nonfinancial corporations. Accurate
statistics on the amounts of commercial paper
held are available for a few groups of investors.
Corporations engaged in manufacturing, mining,
and wholesale and retail trade held about $11
billion at the end of 1981. Moreover, life insurance companies accounted for approximately
$15 billion at that time. Although over the past
decade large weekly reporting banks have made
substantial purchases for their own trust departments or for customers, they continue to purchase little for their own accounts. At year-end
1981, it was estimated that they held less than
$50 million of paper. N o quantitative information
on commercial paper held by other investors is
available.
Individuals do not hold sizable amounts of
commercial paper (indeed, the Securities and
Exchange Commission emphasizes that such pa-
per should be sold only to sophisticated investors), but they probably have acquired larger
amounts of directly placed paper over the last
decade than in earlier periods. Whereas dealers,
and most companies that issue directly, offer
paper in minimum denominations of $50,000 or
$100,000, a handful of finance companies and
some smaller regional bank holding companies
have minimums of $25,000. Still other direct
placers, although they have posted minimums of
$50,000 or $100,000, accommodate an order of
any size given by a large money market bank in
order to maintain good working relationships
with that institution.
CONCLUSION
The commercial paper market has matured into a
significant source of financing for more than
1,200 firms, financial and nonfinancial, domestic
and foreign. Its role has been enhanced in the last
few years by the need of issuers for short-term
financing at a time when many firms have considered long-term financing too costly.
Because a sizable portion of the recent growth
in the commercial paper market has been linked
to sparse long-term debt issuance, the volume of
paper in this short-term market will certainly be
affected by long-term financing conditions: if
conditions in the long-term market show marked
improvement, many firms will fund this shortterm debt. Nevertheless, the commercial paper
market is certain to continue to play a significant
role in corporate financing strategies.
•
335
Financial Developments
of Bank Holding Companies in 1981
This article was prepared by Anthony G. Cornyn
and Thomas L. Zearley of the Board's Division
of Banking Supervision and Regulation.
The year 1981 in many respects proved to be a
difficult one for the nation's largest bank holding
companies. Economic conditions softened not
only in the United States but throughout the
world, interest rates remained both high and
volatile, and competition for financial services
intensified. The transition toward full deregulation of interest rate ceilings on deposits, called
for by the Depository Institutions Deregulation
and Monetary Control Act of 1980, added to the
cost pressures on the banking industry. Yet,
despite the difficult and unsettled economic environment, the overall performance of bank holding companies was reasonably good. Earnings
continued to expand at a moderate pace, profit
margins remained essentially unchanged from
the satisfactory levels of 1980, and capital ratios,
which had been trending down for well over a
decade, stabilized. Signs of deterioration in asset
quality, however, were evident in the rising
incidence of corporate bankruptcies, the surge in
downgradings of corporate debt issues by rating
agencies, the rise in mortgage delinquency rates,
and the higher levels of nonperforming assets
reported by bank holding companies.
This review of major financial developments of
bank holding companies during 1981 is based on
data from the bank holding company financial
supplement (form FR Y-9). The sample consists
of 391 bank holding companies that had more
than $100 million in fully consolidated assets at
year-end 1981.1 These companies controlled aggregate assets of $1,457.9 billion, or about 72
percent of the assets controlled by U.S. commer1. As of December 31, 1981, 3,644 registered bank holding
companies were in existence.
cial banking institutions. This article presents
data for the entire sample of 391 companies
(universe) and for three size classes or peer
groups: 51 holding companies with more than $5
billion in assets; 135 with $1 billion to $5 billion in
assets; and 205 with $100 million to $1 billion in
assets.
EARNINGS AND PROFITABILITY
Earnings of bank holding companies rose moderately in 1981. Net income before securities transactions of the 391-company universe expanded
8.8 percent last year to $9.2 billion (table 1). This
expansion was significantly smaller than the increase of 20.1 percent posted in 1979, but only
slightly lower than the 9.9 percent experienced in
1980. Substantial increases in both gross interest
income and noninterest income were among the
1. Selected income and expense items,
1980 and 19811
Amount
(millions of dollars)
Item
Change
(percent)
1980
1981
133,587
93,956
39,631
175,607
132,061
43,546
31.5
40.6
9.9
11,851
31,765
3,391
16,325
4,753
11,572
14,766
36,975
3,841
17,496
5,711
11,785
24.6
16.4
13.2
7.2
20.1
1.8
Taxes
Net income before
securities transactions
Securities gains (losses) 2
3,101
2,571
(17.1)
8,471
(344)
9,214
(439)
8.8
Net income
8,127
8,776
8.0
Gross interest income (FTE)
Gross interest expense
Net interest income (FTE)
Noninterest income
Noninterest expense
Loan-loss provisions
Income before taxes (FTE)
Tax equivalent adjustment
Income before taxes
1. Universe of 391 bank holding companies. Details may not add to
totals because of rounding.
2. Includes extraordinary items.
FTE
Fully taxable equivalent.
336
Federal Reserve Bulletin • June 1982
favorable factors affecting 1981 earnings. Lower
income tax payments also had a positive impact
on earnings. However, these developments were
partially offset by a sharp rise in gross interest
expense and by higher overhead and loan-loss
provisions.
All three peer groups increased their earnings
last year (table 2)—the medium-size banking
organizations registered the largest gain (10.5
percent).
Percentage change
Universe
$100 million to $1 billion
$1 billion to $5 billion
$5 billion or more
Percent of average assets
Item
1979
1980
1981
Gross interest income (FTE)
Gross interest expense
Net interest income (FTE)
9.31
6.06
3.24
10.55
7.42
3.13
12.60
9.47
3.12
Noninterest income
Noninterest expense
Loan-loss provisions
Income before taxes (FTE)
Tax equivalent adjustment
Income before taxes
.81
2.42
.25
1.38
.42
.96
.93
2.50
.26
1.28
.37
.91
1.05
2.65
.27
1.25
.40
.85
.27
.24
.18
.68
(.01)
.66
(.02)
.66
(.03)
.66
.64
.62
Taxes
Net income before securities
transactions
Securities gains (losses) 2
2. Net operating income, 1978-81 1
Size class
3. Selected income statement items, 1979-81'
1978-79
1979-80
1980-81
20.1
18.2
23.0
19.2
9.9
2.2
15.7
8.6
8.8
7.9
10.5
8.2
Net income
1. Universe of 391 bank holding companies. Details may not add to
totals because of rounding.
2. Includes extraordinary items.
FTE
Fully taxable equivalent.
1. Before securities transactions and extraordinary items.
Gross interest income (on a fully taxable
equivalent basis) increased $42.0 billion in 1981,
up 31.5 percent over the 1980 level (table 1).
Gross interest expense, on the other hand, increased $38.1 billion. As a result, net interest
income—a crucial factor in bank earnings performance—rose $3.9 billion, or 9.9 percent
above the level for 1980.
Net interest margins for the universe equaled
3.12 percent last year, just 1 basis point below
the 3.13 percent recorded in 1980 (tables 3 and
4).2 Increased competition in loan pricing and a
continued shift toward the use of higher-cost
funds to support assets were among the influences that kept pressure on bank holding company margins in 1981.
Noninterest income was an important source
of growth in earnings. Fueled by strong gains in
trading account profits, service charges, commissions, and fee income, noninterest income for
the universe rose 24.6 percent last year to $14.8
billion. All three peer groups reported enlarged
noninterest earnings, but especially strong gains
were posted by the large companies, many of
which experienced significant increases in bond
trading profits and foreign exchange revenues.
Several large banking institutions also booked
2. Net interest margin is equal to taxable equivalent net
interest income divided by average assets for the year.
substantial gains from tax-free "stock-for-debt
swaps."
On the other side of the ledger, noninterest
expenses (excluding loan-loss provisions) increased $5.2 billion in 1981, or 16.4 percent over
the level in 1980. Salaries and employee benefits
and occupancy and equipment expense were
largely responsible for the increase.
Provisions for loan losses for the universe
totaled $3.8 billion, up 13.2 percent from the $3.4
billion in 1980. Despite heightened concern about
credit quality, this rate of increase in provisions
closely tracked the growth in loans. And measured as a percent of average assets, provisions
edged up only slightly, to 0.27 percent from 0.26
percent in 1980. The increases were more pronounced among bank holding companies in the
large- and medium-size groups: loan-loss provisions for 1981 rose an average of 15.2 percent for
the large companies and 13.6 percent for the
4. Net interest margins, 1980 and 19811
Percent
1980
1981
Change
(basis points)
3.13
4.43
4.14
2.73
3.12
4.44
4.20
2.70
-1
1
6
-3
Size class
Universe
$100 million to $1 billion
$1 billion to $5 billion
$5 billion or more
1. Taxable equivalent net interest income divided by average
assets.
Financial Developments
5. Net return on average assets, 1979-81 1
Percent
Size class
Universe
$100 million to $1 billion
$1 billion to $5 billion
$5 billion or more
1979
1980
1981
.68
.86
.83
.62
.66
.80
.87
.59
.66
.80
.86
.59
1. Net income before securities transactions and extraordinary
items divided by average assets.
medium-size institutions, while they declined 8.5
percent for the small companies.
Income before taxes on a fully taxable-equivalent basis (designed to equate nontaxable and
taxable sources of income) for the universe was
$17.5 billion, up 7.2 percent from $16.3 billion in
1980. Without that adjustment, before-tax income for 1981 equaled $11.8 billion, an increase
of only 1.8 percent over $11.6 billion for the
previous year.
Although before-tax income increased slightly
in 1981, provisions for income taxes fell sharply.
For the universe of companies, total income
taxes were $2.6 billion in 1981, or 17.1 percent
less than in the previous year. Generally, reductions in taxes last year were most pronounced at
the small-size companies.
The decline in total income taxes provided a
measurable boost to the earnings of bank holding
companies. Net income before securities transactions was $9.2 billion in 1981, 8.8 percent
higher than in 1980. After deducting securities
losses and extraordinary items of $439 million,
net income equaled $8.8 billion, up 8.0 percent
from $8.1 billion in 1980.
The return on average assets—a key measure
of profitability—was 0.66 percent for the universe in 1981, the same as a year earlier (table 5).
Return on average equity, however, decreased
slightly, from 14.5 percent in 1980 to 14.0 percent
6. Net return on average equity, 1979-81'
Percent
Size class
Universe
$100 million to $1 billion
$1 billion to $5 billion
$5 billion or more
1979
1980
1981
14.7
13.8
14.0
15.1
14.5
12.7
14.5
14.6
14.0
12.5
14.3
14.1
1. Net income before securities transactions and extraordinary
items divided by average equity
of Bank Holding Companies
in 1981
337
in 1981 (table 6). Profitability measures for the
three peer groups showed similar patterns of
stability. Return on average assets remained
constant between 1980 and 1981 for the small and
large companies but declined slightly for the
medium-size institutions. While return on equity
of all three peer groups declined modestly in
1981, the reductions were less than Vi of a
percentage point.
BALANCE-SHEET
CHANGES
The pace of asset expansion continued to slow
for the second straight year. This slowing, attributable primarily to bank holding companies in
the large-size class, reflected the continued sluggishness of economic activity and monetary restraint. Aggregate consolidated assets of the 391
companies expanded 9.8 percent in 1981, compared with growth rates of 10.4 percent in 1980
and 13.8 percent in 1979. Among the three peer
groups, the aggregate assets of companies in the
large-size class grew only 8.9 percent in 1981,
down from 10.4 percent in 1980. In contrast, the
aggregate assets of companies in the mediumsize class rose 13.0 percent in 1981, up from the
10.8 percent increase the year before, while the
assets of companies in the small-size class rose
8.9 percent, compared with the 8.6 percent pace
of 1980.
Responding to the high and volatile interest
rates of 1981, bank holding companies continued
to realign the composition of their balance sheets
to increase the importance of assets and liabilities with shorter maturities and greater interestrate sensitivity. On the asset side, holdings of
non-interest-bearing cash balances were pared,
both in absolute terms and relative to total assets, reflecting the more intensive use of casheconomizing techniques throughout the industry.
The adoption on October 1, 1981, of same-day
settlement procedures by participants in CHIPS,
the Clearing House Interbank Payments System,
also contributed significantly to the reduction in
cash balances. At year-end 1981, non-interestbearing cash balances of the 391 companies
amounted to 7.9 percent of aggregate assets,
down from 10.7 percent a year earlier and 11.8
percent at the end of 1979 (table 7).
338
Federal Reserve Bulletin • June 1982
7. Selected balance sheet items, year-end 1980 and 1981
Percent of total assets
Size class
Item
Cash (excluding interest-bearing deposits)
Money market investments'
Investment securities
Loans and leases, net
Premises and equipment
Other assets
Total assets
Demand deposits
Time deposits in denominations of $100,000 or more . . .
Other time deposits
Savings deposits
Foreign deposits
Total deposits
Short-term borrowings 2
Long-term borrowings
Other liabilities
Stockholders' equity 3
Total liabilities and stockholders' equity
$5 billion or
more
$1 billion—
$5 billion
$100 million$1 billion
Universe
1980
1981
1980
1981
1980
1981
1980
1981
10.6
14.7
9.5
57.3
1.0
6.9
100.0
7.2
15.1
8.6
60.2
1.1
7.8
100.0
11.4
9.8
20.4
53.2
1.9
3.3
100.0
10.3
12.9
18.8
52.4
1.9
3.7
100.0
9.1
8.0
25.1
53.2
2.2
2.3
100.0
8.4
9.6
24.4
52.6
2.3
2.7
100.0
10.7
13.3
12.7
56.2
1.3
5.8
100.0
7.9
14.3
11.7
58.1
1.4
6.6
100.0
18.5
13.2
6.7
5.7
28.0
72.1
14.5
15.0
7.5
5.6
27.4
70.0
28.2
13.4
18.4
14.1
2.8
77.0
24.3
13.6
20.2
13.8
3.3
75.2
27.0
13.8
24.2
17.2
.1
82.3
23.3
14.3
26.4
16.9
.1
81.0
21.0
13.3
10.2
8.2
21.1
73.8
17.1
14.7
11.3
8.0
20.6
71.7
14.4
2.2
7.1
4.1
100.0
15.3
2.5
7.9
4.2
100.0
12.3
1.8
2.8
6.1
100.0
14.0
1.7
3.1
6.0
100.0
7.9
1.7
1.6
6.5
100.0
9.1
1.7
1.7
6.5
100.0
13.6
2.1
5.8
4.7
100.0
14.7
2.3
6.5
4.8
100.0
1. Includes interest-bearing cash balances with other depository
institutions, trading account securities, and federal funds sold and
securities purchased under agreements to resell.
2. Includes commercial paper, federal funds purchased, securities
sold under agreements to repurchase, and other borrowings with an
original maturity of one year or less.
3. Includes minority interest in the equity accounts of consolidated
subsidiaries.
Underscoring the trend toward shorter asset
maturities, the percentage of assets allocated to
money market instruments rose to 14.3 percent
at year-end 1981, compared with 13.3 percent at
the end of 1980. (Money market investments are
defined to include interest-bearing cash balances
with other depository institutions, trading account securities, federal funds sold, and securities purchased under agreements to resell.) As
shown in table 7, the large bank holding companies continued to hold a significantly greater
share of their assets in money market instruments than did either medium- or small-size
companies.
To accommodate the strong demand for bank
loans, bank holding companies reduced their
holdings of investment securities relative to total
assets in 1981. Holdings of U.S. government
obligations and of other bonds, notes, and debentures were scaled back, and the rate of acquisition of municipal securities slowed considerably.
For the year, total investment securities held by
the 391 companies increased only 1.1 percent,
and by year-end 1981 they amounted to 11.7
percent of assets, down from 12.7 percent at the
end of 1980.
Total loans and leases outstanding, net of
reserves for possible losses, grew 13.6 percent in
1981, somewhat faster than in the previous year.
The universe reported net loans and leases outstanding of $846 billion as of December 31, 1981,
compared with $745 billion at the end of 1980.
The pickup in loan growth reflected in large part
the increased demand for bank credit from commercial and industrial borrowers, many of whom
continued to defer longer-term financing because
of generally unfavorable conditions in the bond
and equity markets. By comparison, consumer
and real estate loans and loans to financial institutions rose at a more moderate pace. Loans
made at foreign offices and at Edge and Agreement subsidiaries increased 13.3 percent, or at
roughly the same rate as loans made at domestic
offices. Direct-lease-financing receivables of the
391 companies increased 11.2 percent in 1981
and stood at $19.7 billion at year-end, up from
$17.7 billion as of December 31, 1980. The composition of the loan portfolios of the three size
classes and the universe is shown in table 8.
On the liability side, growth of deposits was
unusually weak. Total deposits held by the 391
companies increased only 6.9 percent in 1981,
Financial Developments
of Bank Holding Companies
in 1981
339
Composition of loan portfolios, year-end 1980 and 1981
Percent of gross loans and leases
Size of class
Item
Loans made at domestic offices
Real estate loans
Loans to financial institutions
Commercial and industrial loans
Consumer loans
All other loans
Loans made at foreign offices and at
Edge Act and Agreement subsidiaries
Lease financing receivables
Total
$5 billion or
more
1981
1981
1980
1981
16.5
6.3
27.0
4.7
16.2
6.0
28.6
10.2
5.0
31.7
3.9
31.7
24.1
4.1
31.4
3.7
32.5
22.9
4.3
37.0
1.6
29.9
25.4
4.9
36.7
2.1
31.9
23.7
4.5
20.7
5.6
28.1
14.4
4.6
20.3
5.3
29.5
13.4
4.8
31.9
2.6
31.5
2.5
2.8
1.7
3.4
1.7
.1
1.1
.1
1.0
24.3
2.3
24.3
2.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Along with the overall increase in short-term
funding, medium- and long-term borrowings of
bank holding companies also increased during
the year. The total of these types of borrowings
of the 391 companies at year-end 1981 was $33.1
billion, up $4.7 billion or 16.5 percent from the
end of the previous year. Such borrowings sup-
1980
Universe
1981
11.0
1980
$100 millionSi billion
1980
and by year-end the ratio of total deposits to total
assets had fallen to 71.7 percent, down from 73.8
percent at the end of 1980. As shown in table 7,
the contraction in demand deposits as a source of
funds was particularly pronounced. The outflow
of demand deposits was generally attributed to
the introduction of negotiable order of withdrawal (NOW) accounts nationwide and to continued
competition from money market mutual funds.
In recent years, deposits have failed to keep
pace with assets, and consequently, nondeposit
borrowings have played an increasingly important role in the funding strategies of bank holding
companies. In 1981, dependence on short-term
borrowings (federal funds purchased, commercial paper, and other borrowings with an original
maturity of one year or less) increased significantly. Aggregate short-term borrowings of the
391 companies rose 18.5 percent during the year;
as of December 31, 1981, they equaled 14.7
percent of total assets, compared with 13.6 percent a year earlier. As shown in table 7, reliance
on short-term borrowings tends to be related to
asset size. On average, companies in the largesize class supported 15.3 percent of their assets
with short-term borrowings, compared with 14.0
percent in the medium-size class and 9.1 percent
in the small-size class.
$1 billion—
$5 billion
ported 2.3 percent of total assets as of year-end,
compared with 2.1 percent at the end of 1980.
CAPITAL
Bank holding companies, particularly the large
multinational institutions, have been under regulatory and market pressures to address the longterm decline in their capital ratios. Although
some companies strengthened their capital positions during the year, for the group as a whole
the trends in key indexes of capital strength were
mixed. For example, as measured by the ratio of
equity to total assets, capital ratios of bank
holding companies continued to increase for the
second consecutive year. The composite ratio of
equity to assets of the 391 companies stood at
4.77 percent at year-end, up from 4.68 percent at
the end of 1980 and well above the low of 4.61
percent at the end of 1979. Against this favorable
trend, some erosion developed in capital ratios
as measured by the ratio of equity capital to risk
assets (total assets less cash and U.S. government securities). For the universe, the composite
ratio of equity to risk assets declined to 6.22
percent, compared with 6.35 percent at the end
of 1980 (table 9).
Aggregate stockholders' equity of the 391
companies has grown relatively steadily, at an
annual rate of 11 to 12 percent in each of the last
four years. In 1981, it advanced 11.9 percent,
outpacing total assets, which rose 9.8 percent.
This growth reflected a sizable increase in exter-
340
Federal Reserve Bulletin • June 1982
9. Selected capital ratios, year-end 1979-81
Percent
Equity to risk assets 2
Equity to assets'
Size class
Universe
$100 million to $1 billion
$1 billion to $5 billion
$5 billion or more
1979
1980
1981
1979
1980
1981
4.61
6.43
6.00
4.08
4.68
6.49
6.07
4.13
4.77
6.54
6.05
4.25
6.29
8.32
7.90
5.63
6.35
8.59
8.16
5.64
6.22
8.68
8.14
5.48
1. Total stockholders' equity plus minority interest in consolidated
subsidiaries divided by total assets.
2. Total stockholders' equity plus minority interest in consolidated
subsidiaries divided by total assets less cash and due from depository
institutions, U.S. Treasury securities, and obligations of U.S. government agencies and corporations.
nal equity financing, which offset a slowing in the
rate of internally generated funds.
Bank holding companies in total raised in
excess of $750 million of equity through offerings
of common and preferred stock during the year.
A significant portion of this total was raised
through stock-for-debt swaps, a recent innovation in the banking industry. The swaps, which
are designed to boost earnings and to reduce
financial leverage, involve the issuing of new
shares of common stock in exchange for longterm debt of the issuer that has been purchased
in the market at a discount from face value. Bank
holding companies raised about $300 million of
equity in this manner during the year. Most of
the remaining volume of equity offerings was in
the form of private placements. Bank stocks
continued to sell at depressed multiples of price
to earnings and price to book value throughout
the year, a condition that has generally made
external equity financing an unattractive and
costly funding option.
that nonperforming assets rose about 40 percent
in 1981, reversing a downward trend over several
years. Despite the sharp increase in nonperforming assets, ratios of such assets to the total were
well below the peak levels of the mid-seventies.
Nonperforming assets consist of loans that are
not accruing interest, that are past due, or that
have been renegotiated to accommodate financial difficulties of borrowers, and real estate
acquired through foreclosure.
In contrast to the upsurge in nonperforming
assets, net loan charge-offs increased only marginally in 1981 and, in fact, declined as a percentage of average loans outstanding. Net loan
charge-offs of the 391 companies were $2.8 billion, only 4.5 percent over the 1980 level of $2.7
billion. The composite ratio of net loan losses to
average loans outstanding declined to 0.36 percent in 1981, compared with 0.38 percent the
previous year (table 10). Among the three peer
10. Ratio of net loan losses to average loans
outstanding, 1979-81
Percent
Size class
ASSET
1979
1980
1981
.31
.34
.39
.28
.38
.47
.43
.36
.36
.40
.43
.33
QUALITY
As expected, the downturn in economic activity
and unusually high and volatile interest rates
resulted in some deterioration in the quality of
assets of bank holding companies in 1981. Signs
of that deterioration were seen in the rising
incidence of corporate bankruptcies, the acceleration in downgradings of corporate-debt issues
by rating agencies, and the upward trend in
mortgage delinquency rates. Although data on
nonperforming assets are not available for all of
the companies included in the survey, data on a
sample of large bank holding companies suggest
Universe
$100 million to $1 billion
$1 billion to $5 billion
$5 billion or more
groups, the large companies reported the lowest
level of net charge-offs to average loans for the
year, 0.33 percent, while the small and mediumsize companies reported charge-off ratios of 0.40
and 0.43 percent respectively. Historically, the
realization of recession-related loan losses lags
the onset of an economic downturn. Consequently, the loan-loss ratio is generally viewed as a
lagging indicator of credit quality.
•
341
Treasury and Federal Reserve Foreign
Exchange Operations: Interim Report
This interim report, covering the period February through April 1982, is the nineteenth of a
series providing information on Treasury and
System foreign exchange operations to supplement the regular series of semiannual
reports
that are usually issued each March and September. It was prepared by Sam Y. Cross, Manager
of Foreign Operations of the System Open Market Account and Senior Vice President in charge
of the Foreign Group of the Federal Reserve
Bank of New York.
A combination of wide interest rate differentials
favorable to dollar-denominated assets and a
relatively more positive attitude toward economic and political prospects for the United States
than for other countries moved the dollar higher
in the exchange markets through mid-April.
Thereafter, though the dollar weakened substantially, it nonetheless ended the February-April
period under review higher on balance against all
major currencies except the German mark,
which benefited from a positive shift in market
sentiment and strengthened across the board.
The dollar's advance through mid-April partly
reflected a reassessment of the U.S. interest rate
outlook. With the drop in economic activity in
the United States, market participants had expected some decline in U.S. short-term interest
rates and an erosion of the impressive interest
rate advantage on dollar-denominated assets.
Instead, money growth surged early in 1982
while economic activity was contracting. Although part of the bulge in money growth was
thought to be short term and reversible in nature,
part also reflected less technical factors such as
increased precautionary demands by individuals.
With the Federal Reserve restraining the supply
of bank reserves to prevent the narrow monetary
aggregate (Ml) from staying persistently above
the annual growth target for 1982 of 2xh to 51/2
percent, short-term interest rates moved higher.
The rise was interrupted in late February when
the demand for money and credit declined. But
then, in March, expectations of another spurt in
money growth during April exerted renewed
upward pressures on short-term rates. Meanwhile, long-term interest rates did not move
lower in the face of declining economic activity
essentially because of concerns that federal government deficits would burgeon in the years
ahead to the point of exerting major strains on
the financial markets, particularly once the economy begins to expand again.
Abroad, interest rates in most countries did
not increase and in many cases even declined.
Monetary authorities faced persistent stagnation
in their domestic economies and record unemployment. The widespread lowering of European
interest rates in January left market participants
with the impression that economic policy priorities were shifting somewhat in favor of providing economic stimulus as opposed to concentrating as heavily as before on the anti-inflation fight.
Talk spread in the market that some foreign
authorities might even impose capital or foreign
exchange controls so as to permit a cut in their
interest rates without incurring depreciations of
their currencies against the dollar. Such measures were not undertaken but, during March,
many foreign central banks did reduce their
official lending rates or otherwise facilitated an
easing in domestic monetary conditions. As a
1. Drawings and repayments by foreign central
banks under reciprocal currency arrangements
Millions of dollars; drawings or repayments (—)
Bank drawing on
Federal Reserve System
Bank of Mexico
Commitments, January 31,
1982
February 1
through
April 30,
1982
Commitments,
April 30,
1982
0
600.0
600.0
342
Federal Reserve Bulletin • June 1982
result, interest differentials in favor of the dollar
remained large, continuing to attract funds into
dollar-denominated assets.
Meanwhile, exchange market sentiment toward the dollar was bolstered by the rapid ebbing
of U.S. inflation. As measured by the consumer
price index, the inflation rate dropped several
percentage points in the early months of 1982 to
about 3 percent at an annual rate, while inflation
abroad either declined by less or in some cases
even accelerated. To be sure, part of the improvement reflected recession-induced (and
therefore more readily reversible) price declines
in food, in energy, and in other raw materials,
while the dollar's appreciation in the exchange
market also played a role by tempering import
costs. But a decided moderation in wage settlements was also taking place in the United States,
and many in the exchange market saw reason to
hope for more lasting changes in attitudes and in
behavior on the part of both business and labor,
with the prospect of further progress on inflation
ahead.
Further supporting the dollar was the perception that the worldwide recession was harming
the U.S. trade balance and investment activity
less than that of many other countries. While the
weakness in the U.S. economy had previously
led analysts to scale back the forecast deterioration in the U.S. current account, a swing into
deficit was nonetheless widely expected. However, the current account remained in surplus
early in 1982, as sharply lower oil prices, a fall in
import volumes, and large net services earnings
more than offset the deterioration in manufactured exports.
At the same time, international investors felt
that political stability and the long-term business
climate in the United States provided a strong
inducement to continue investing in U.S. assets
despite the higher level of the dollar in the
exchanges. Already in 1981, reversing a longstanding pattern, foreign direct investment in this
country actually exceeded U.S. direct investment abroad by some $12 billion. Tax incentives,
regulatory reforms, and the prospect of policy
continuity in support of market mechanisms continued to underpin foreign direct investment as
well as sizable inflows into U.S. stocks and
bonds. Moreover, geopolitical tensions from
time to time brought the dollar into demand as a
2. Net profits and losses ( - ) on U.S. Treasury and
Federal Reserve foreign exchange operations'
Millions of dollars
U.S. Treasury
Period
February 1 through April
30, 1982
Valuation profits and
losses on outstanding
assets and liabilities
as of April 30, 1982 . . .
Federal
Reserve
Exchange
Stabilization
Fund
General
account
0
.7
0
-410.8
-1,159.3
840.3
1. Data are on a value-date basis.
"safe haven" for more liquid forms of capital as
well.
The downturn in world economic activity
seemed to weigh especially heavily on economies abroad and served to heighten competitive
tensions. To be sure, the sharp decline of the
surplus of the Organization of Petroleum Exporting Countries (OPEC) had its counterpart in
lower current account deficits among the industrial countries, but the distribution of the benefits
was proving highly uneven. Moreover, even
those countries with improving balance of payments trends, such as Germany and Japan, were
not expected to sustain a rapid growth of their
exports. Constraints on expanded trade with
Eastern Europe developed in the wake of the
Polish payments crisis, while previously rapid
growth markets in Asia slowed. The growth of
import demand by OPEC dwindled as oil-producing countries grappled with lower oil revenues. In addition, the threat of major protectionist measures clouded industrial country relations, particularly those affecting Japan. At the
same time, however, in nearly all countries overseas (more dependent on trade than the United
States for a large portion of gross national product), the anemic state of domestic demand triggered greater efforts by domestic enterprises to
sell in external markets, and consequently competitive pressures were strong.
In these circumstances the realignment of the
European Monetary System (EMS) in February
raised questions in private and official circles
about the relative competitiveness of member
economies, about the durability of the new parties, and about the cohesion of participating
states in the joint float arrangement. Indeed,
Foreign Exchange Operations: Interim Report
almost immediately after the February 20-21
weekend when the central rates of the Belgian
franc and Danish krone were adjusted downward
8V2 and 3 percent respectively, speculation developed that the EMS would again be realigned.
Selling pressures focused on currencies of countries where the policy design or the economicsocial setting was thought by the market to
impede the fight against inflation and the efforts
to regain equilibrium in the balance of payments
or to put public-sector finances on a sounder
basis. The speculative selling pressures—most
intense against the French franc, the Belgian
franc, and the Italian lira—tended to moderate
by early April following official actions to raise
interest rates and restrict capital outflows. In
addition, foreign monetary authorities intervened heavily as sellers of dollars and, to a lesser
extent, of currencies that traded at the top of the
joint float. Even so, the EMS currencies declined
substantially against the dollar.
In response to these various factors, therefore,
from the end of January to mid-April the dollar
gained as much as 8 percent against the Japanese
yen, 63/t percent against sterling and the Swiss
franc, about 3Vi percent against the German
mark, and nearly 3 percent against the Canadian
dollar to approach levels close to the peaks
registered in August 1981.
In the latter half of April, however, traders and
investors began to assess the dollar's prospects
less favorably and dollar exchange rates declined. The latest economic statistics gave virtually no sign of an end to recession, eroding hopes
that a perceptible recovery in U.S. business
activity was likely in the near term. With production, employment, and incomes proving weaker
than once anticipated, grounds developed for
expecting the April bulge in M1 to unwind quickly, thereby lessening the need in the view of
market participants for an immediate squeezing
of the availability of bank reserves under the
Federal Reserve's monetary policy approach.
For a brief period, also, optimism developed in
the exchange markets of an early compromise on
measures to bring projected federal deficits in
fiscal year 1983 and beyond under better control.
Consequently, though market participants remained sensitive to the many forces underpinning the high level of U.S. interest rates, the
balance of opinion in the exchange markets
343
swung toward the view that interest rates in this
country could drop, perhaps substantially, in the
ensuing months. And, in fact, U.S. interest rates
did decline toward the month-end.
At the same time, market participants were
disappointed that U.S. mediation efforts were
unable to avert a military conflict between Argentina and the United Kingdom and expressed
concern that U.S. relations with Latin America
might deteriorate in view of the U.S. alliance
with Britain. Paralleling the sense of disappointment over U.S. leadership in the foreign arena
was a lessening of confidence in U.S. economic
managment on the domestic front, as hope for an
early and satisfactory solution to the budget
deficit faded amid drawn-out and inconclusive
discussion and negotiations.
The market's more cautious assessment of the
dollar coincided with a favorable shift in sentiment toward the German mark. In Germany,
progress toward curbing inflation was underscored by moderate wage settlements negotiated
with the pacesetting metalworkers union. Publication of a record postwar monthly trade surplus
for March appeared to confirm the considerable
improvement under way in Germany's balance
of payments position both in relation to earlier
trends and in relation to other industrial countries. Within the EMS the mark had already been
strong for more than a year, and with these
developments the German currency strengthened against the dollar as well.
In these circumstances the dollar fell back
against all major currencies in late April. It
closed the three-month period under review,
down about V2 percent against the German mark.
In relation to other currencies, however, the
dollar remained more resilient and ended the
period higher, on balance, by about 2 percent
against the Canadian dollar, 2Vi percent against
the Japanese yen, 3 percent against sterling, and
AVi percent against the Swiss franc.
During the period, the Trading Desk did not
intervene for the account of the U.S. Treasury or
the Federal Reserve. The Desk continued its
long-standing practice of intervening as agent for
other central banks from time to time in the New
York market.
In other developments, the Mexican government devalued the peso in February and for a
time the peso benefited in the exchanges from a
344
Federal Reserve Bulletin • June 1982
reflux of funds. However, selling pressures again
built up, and in late April the government announced a stabilization program to improve the
policy framework for dealing with the country's
inflation and balance of payments problems.
Mexico's international reserve position was under strain during the period; to help meet a
temporary reserve need, the Bank of Mexico
requested and was granted a $600 million drawing on its $700 million swap line with the Federal
Reserve. The funds were drawn on April 30 and
repaid shortly after the close of the period under
review.
In the three-month period from February
through April, the Federal Reserve and the Treasury general account realized no profits or losses
from exchange transactions. The Exchange Stabilization Fund gained $0.7 million in connection
with the sale of foreign currency to the Treasury
general account to finance interest payments on
foreign currency-denominated securities. As of
April 30, valuation losses on outstanding foreign
currency balances were $410.8 million for the
Federal Reserve and $1,159.3 million for the
Exchange Stabilization Fund. The Treasury general account had valuation gains of $840.3 million
related to outstanding issues of securities denominated in foreign currencies.
•
345
Staff Studies
The staffs of the Board of Governors of the
Federal Reserve System and of the Federal
Reserve Banks undertake studies that cover a
wide range of economic and financial subjects.
In some instances the Federal Reserve
System
finances similar studies by members of the academic profession.
From time to time, papers that are of general
interest to the professions
and to others are
selected for the Staff Studies series. These papers are summarized—or, occasionally,
printed
in full—in the F E D E R A L R E S E R V E B U L L E T I N .
In all cases the analyses and conclusions set
forth are those of the authors and do not necessarily indicate concurrence by the Board of Governors, by the Federal Reserve Banks, or by the
members of their staffs.
Single copies of the full text of each of the
studies or papers summarized in the B U L L E T I N
are available without charge. The list of Federal
Reserve Board publications at the back of each
B U L L E T I N includes a separate
section
entitled
"Staff Studies" that lists the studies that are
currently
available.
STUDY SUMMARY
THE COMMUNITY REINVESTMENT ACT AND CREDIT ALLOCATION
Glenn Canner—Staff,
Board
of
Governors
Prepared as a staff paper in early 1981
The Community Reinvestment Act of 1977 was
passed in response to a widely held perception
that sound lending opportunities in inner-city
areas either were not recognized or were being
ignored by institutional lenders. The primary
purpose of the Community Reinvestment Act
(CRA) is to assure that local depository institutions supervised by federal financial agencies do
not neglect the credit needs of the institution's
local communities, including low- and moderateincome neighborhoods. Each appropriate federal
financial supervisory agency is required to assess
the degree to which depository institutions are
meeting the credit needs of their communities
and to use its authority to encourage those
institutions to meet their CRA obligations consistent with safe and sound banking practices.
Furthermore, the CRA directs each supervisory
agency to take into account the CRA record
when an institution applies for a deposit facility.
Proponents of the CRA emphasized that the
law was not intended to require specific lending
targets, but rather to encourage lenders to take
affirmative action to ensure that creditworthy
borrowers in their communities were not ignored
and that all borrowers were treated in an evenhanded manner. Those opposed to the legislation
expressed concern that the act represented a
significant step toward credit allocation by the
public sector. The opponents envisioned that the
law would be used to require a lender to extend a
specific dollar volume of credit to residents of a
neighborhood irrespective of the soundness of
the loans. This paper reviews the legislative
intent of the CRA and the actions taken by the
Federal Reserve System since the implementation of the CRA. The analysis focuses on the
relationship between the CRA and credit allocation as carried out by the Federal Reserve.
A review of developments stemming from
346
Federal Reserve Bulletin • June 1982
Federal Reserve System actions on bank and
banking organization applications that involved
specific CRA issues, either raised by protestants
or consumer compliance examiners, indicates
that these actions appear to be consistent with
congressional intent. In this regard, the System
has attempted neither to pressure institutions to
allocate funds to specific neighborhoods or
groups nor to offer a particular mix of credit. On
the other hand, a number of negotiated settlements of CRA protests, as well as conditions
imposed by other supervisory agencies, have
raised the specter of credit allocation. Inasmuch
as the geographic allocation of funds is often a
primary goal of protestants, negotiated CRA
settlements in the future are likely to continue to
involve some elements of geographic credit allocation.
•
347
Industrial Production
Released for publication
June 15
Industrial production edged down an estimated
0.2 percent in May, after declines of 0.8 percent
in each of the two preceding months. Output of
business equipment and basic metals continued
to drop sharply, while consumer goods increased
again. At 140.3 percent of the 1967 average, the
index in May was 8.8 percent below its recent
peak in July 1981.
In market groupings, production of consumer
durable goods increased 2.3 percent in May,
reflecting a sharp rise in automotive products
and little change in home goods. Autos were
assembled at an annual rate of 5.6 million units,
up about 10 percent from the April rate. Output
of lightweight trucks also advanced further. Nondurable consumer goods evidenced another
small increase.
Output of business equipment was reduced 1.6
1967 = 100
All series are seasonally adjusted and are plotted on a ratio scale. Auto sales and stocks include imports. Latest figures: May.
1967 = 100
348
Federal Reserve Bulletin • June 1982
1967 = 100
Percentage change from preceding month
Apr.
p
Apr.
May
1982
1982
Grouping
Percentage
change,
May 1981
to May
1982
May
e
Jan.
Feb.
Mar.
Major market groupings
Total industrial production
140.6
140.3
-1.9
1.6
-.8
-.8
-.2
-8.1
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment
Defense and space
Intermediate products
Construction supplies
Materials
143.4
143.2
142.6
131.2
147.1
166.0
107.3
143.8
123.4
136.4
143.3
143.3
143.8
134.2
147.6
163.3
107.9
143.5
123.9
135.5
-2.3
-2.4
-1.7
-2.5
-1.4
-3.8
-1.7
-1.7
-2.2
-1.3
1.2
.9
1.6
4.8
.5
-.3
1.2
2.0
2.7
2.3
-.6
-.5
-.2
1.9
-.9
-1.5
.7
-.8
-1.4
-1.3
-.3
-.1
.8
2.3
.2
-1.8
.1
-1.0
-1.8
-1.6
-.1
.1
.8
2.3
.3
-1.6
.6
-.2
.4
-.7
-5.9
-5.3
-4.6
-8.9
-3.0
-10.3
5.8
-8.1
-15.4
-11.7
-.7
-.8
-.4
-3.8
.1
-.1
-.2
.1
-2.4
-.5
-9.0
-11.5
-5.8
-3.9
-.9
Major industry groupings
139.2
127.3
156.6
133.3
170.0
Manufacturing
Durable
Nondurable
Mining
Utilities
p Preliminary.
e Estimated.
139.1
127.0
156.7
130.1
169.1
1.7
1.7
1.7
-1.5
-.8
-.5
-.8
-.3
-2.7
-.3
NOTE. Indexes are seasonally adjusted.
percent further in May, after cutbacks totaling
more than 10 percent over the nine preceding
months. Large declines occurred in May in building and mining and manufacturing equipment.
Production of defense equipment rose again.
Construction supplies increased slightly, after
sharp declines in March and April.
Output of materials declined 0.7 percent in
May—about half of the reduction that occurred
in each of the two preceding months. Among
durable materials, sharp cutbacks continued in
the production of basic metals and equipment
parts; in contrast, parts for consumer durable
-2.5
-3.2
-1.5
1.3
2.1
goods rose for the fourth consecutive month,
largely reflecting gains in the automotive sector.
Nondurable materials and energy materials decreased again.
In industry groupings, output of manufacturing
edged down 0.1 percent in May. Production of
durable manufacturing decreased 0.2 percent, as
sizable declines in primary metals and machinery
were partially offset by a higher level of motor
vehicle output; production in nondurable manufacturing was almost unchanged. Output of mining dropped 2.4 percent, and utilities declined 0.5
percent.
349
Statements to Congress
Statement by Henry C. Wallich, Member, Board
of Governors of the Federal Reserve
System,
before the Subcommittee on Financial Institutions Supervision, Regulation and Insurance of
the Committee on Banking, Finance and Urban
Affairs, U.S. House of Representatives, May 19,
1982.
I am pleased to testify on H.R. 6016, a bill that
would facilitate the establishment and operation
of export trading companies.
At the outset, I should like to restate the view
of the Board that the United States needs a
strong export sector. Export trading companies
have been proposed as a means of contributing to
the achievement of this goal by providing producers of goods and services that have additional
business opportunities with a way of reducing
the risks associated with foreign business endeavors and offering producers a wide variety of
services. Export trading companies may be able
to provide assistance to small- and medium-size
U.S. businesses producing goods that can be
marketed abroad.
Some have suggested that participation by
banks, particularly bank ownership, is essential
to the effective operation of export trading companies. In the Board's view, the question of
whether export trading companies can be of
significant help to U.S. exporters does not depend upon such a role for banks, as I have
testified in the past. But in any event, I believe,
more important problems of principle are posed
by bank equity ownership of entities directly
engaged in commerce. Bank control of trading
companies runs counter to our long-standing
national policy, firmly embedded in legislation,
of the separation of banking and commerce.
This policy has its basis in two principal concerns: (1) the safety and soundness of particular
banks, and of the banking system in general,
might be impaired if banks were closely affiliated
with the ownership, management, and operation
of a potentially high-risk nonbank business, and
(2) a bank might allocate available credit on
bases other than the creditworthiness of the
borrower by giving preference to customers of
the banks' affiliates or by denying credit to
competitors of the banks' affiliates—possibilities
that illustrate the basic issues of avoiding conflicts of interest and excessive concentration of
resources.
The separation of banking and commerce has
served this nation well in promoting a strong
banking system and economic competition. The
Board is concerned that a breach of that traditional separation in the case of trading companies
could adversely affect the safety and soundness
of U.S. banks as well as their role as impartial
arbiters of credit and could be an adverse precedent for breaches of this wall in other areas.
The Board is also concerned with the risks
arising from bank involvement as managers and
controlling investors in new enterprises at a time
when bank capital generally is at an uncomfortably low level. The Board and the Comptroller of
the Currency recently issued a joint policy statement setting forth their concerns over the secular
declines in the capital ratios of the nation's
largest banking organizations and indicating their
intention to encourage through supervisory policies appropriate steps to improve the capital
positions of the lower-ranking members of the
large-bank group. This situation suggests the
need for caution in any opening of the doors to
new enterprises with largely unknown risks.
While reiterating the view that banking organizations should not generally have controlling
interests in export trading companies, I shall
direct my remarks to the specific provisions of
H.R. 6016 as they relate to the concerns of the
Board.
The Board has previously supported the view
that if banks are to be affiliated with export
trading companies, the investments in trading
companies should be held only through bank
holding companies. I am pleased that H.R. 6016
goes far toward meeting this objective by provid-
350
Federal Reserve Bulletin • June 1982
ing that interests in export trading companies
could be held only through bank holding companies or Edge corporations.
The proper location and the amount of supervision of nonbanking activities of bank holding
companies have been the subject of much discussion recently. The Treasury, for example, has
suggested that all nonbanking activities should
be required to be conducted through separate
subsidiaries of a bank holding company. In its
view, this requirement, would adequately insulate affiliated banks from such activities and so
would make possible virtually automatic approval of the activity and allow regulatory oversight
to remain minimal.
In the past, the Board has seen no strong need
to require banking activities to be conducted in
separate subsidiaries. Indeed, allowing banking
organizations the latitude to develop organizational structures designed to suit their unique
needs has advantages in the form of economic
efficiency and easier regulatory oversight. Such
an approach has proved advantageous to banks
and holding companies of all sizes and locations
in providing a range of banking activities in
structures that promote competition. We continue to support this approach as a general principle
for banking activities, and particularly for expanded securities activities that are closely related to banking.
On the other hand, the Board believes the
appropriate location for trading company activities would be in a subsidiary of a holding company, rather than in a direct subsidiary of the bank
or its Edge corporation. In the case of export
trading companies the Board believes such an
arrangement to be desirable because export trading companies would represent the first instance
of bank holding companies being permitted to
own companies engaged in commerce as distinguished from banking. This arrangement would
have the advantage of assuring uniform regulatory oversight over a new and potentially risky
activity.
The Board would be further concerned if the
traditional barrier between banking and commerce were breached not only by allowing banking organizations to engage in nonbank activities
but also by allowing banking organizations to be
partners in ventures with nonbank companies.
We have generally opposed joint ventures in
volving bank holding companies and nonbank
organizations, especially when the nonbank
company was engaged in manufacturing or commercial enterprise. Accordingly, the Board believes that any export trading company legislation should restrict the ability of banking and
nonbanking organizations to own jointly an export trading company.
Another suggestion is that banks below a certain size, which are unlikely to have a bank
holding company parent, should be permitted to
invest directly in export trading companies. But
the reasons for restricting export trading company ownership to bank holding companies apply
equally to banks that do not have a parent
holding company. While the Board has in the
past indicated that passive minority investments
in export trading companies of a purely financial
nature might be permitted for banks as well as
bank holding companies, all significant investments in trading companies, and certainly all
controlling investments, should be permitted
only through a bank holding company.
In addition to prohibiting direct bank ownership of export trading companies, I believe other
safeguards in H.R. 6016 are important in limiting
the risks to which a banking organization would
be exposed as a result of a controlling interest in
an export trading company. The bill recognizes
that the area in which the bank's expertise is
likely to be of greatest value to the trading
company is through financing, and places restrictions on the investments in and extensions of
credit to the trading company by the bank holding company.
However, the proposal in H.R. 6016 to apply
section 23A of the Federal Reserve Act to the
bank holding company with respect to its extensions of credit to its affiliate trading company
would be an unusual application of section 23A.
That provision has previously been applied only
to banks, and not to bank holding companies,
with the purpose of safeguarding the resources of
banks against misuse of those resources for the
benefit of organizations under common control
with the bank. I feel bound to point out that this
provision in H.R. 6016 would virtually eliminate
extensions of credit from the holding company to
its controlled export trading company because of
the stringent collateral requirements of section
23A. On the other hand, the effect of this ap-
Statements
proach would be to permit—without any limits—
extensions of credit by other nonbank affiliates,
such as a holding company's finance company
subsidiary, to the trading company.
A more effective approach would be to limit
extensions of credit by a banking organization
and its affiliates to any single export trading
company to an amount that, together with the
investment in that company, would not exceed
10 percent of the banking organization's capital,
while total equity investment by a banking organization in one or more trading companies could
not exceed, in the aggregate, 5 percent of the
banking organization's capital. These loans
could be made by the bank, its Edge corporations, or other holding company affiliates. The
bank's lending would, of course, also be limited
by the amount and collateral requirements of
section 23A. We believe that this method of
limiting the exposure of the banking organization
to this new activity would be both workable and
prudent.
In addition, I believe other reasonable steps
can be taken to limit the banking organization's
financial exposure. H.R. 6016 could further be
strengthened by a provision similar to the one in
S.734 that prohibits a bank holding company and
its affiliates from making extensions of credit to
the customers of its affiliated export trading
company on terms more favorable than those
afforded similar borrowers in similar circumstances, and requires that such extensions of
credit involve no more than the normal risk of
repayment or present other unfavorable features.
The Board also believes that an export trading
company controlled by a bank holding company
should be prohibited from taking title to goods or
commodities except in very limited circumstances. The export trading company should be
allowed to take title to goods or commodities
only on the basis of firm orders from customers
or when necessary to effectuate a sale. Moreover, the bill should clearly authorize the Board
to determine that, if an export trading company
controlled by a bank holding company holds
manufactured goods or commodities in inventory
in order to speculate on price movements in
these goods, such activity would constitute an
unsafe or unsound practice.
Two additional safeguards in H.R. 6016 concerning the use of the name of the bank or bank
to Congress
351
holding company as the name of the export
trading company and the participation of these
companies in manufacturing are of particular
importance to the Board in considering this legislation. We have in the past supported the safeguard in H.R. 6016 that prohibits an export
trading company from having a name similar in
any respect to that of the bank or bank holding
company with which it is affiliated through stock
ownership. As in the case of real estate investment trusts in the mid-1970s, public identification of a bank with another enterprise could
involve the bank in significant losses, even when
it has no ownership interest.
We believe that the use of the name of the
bank or bank holding company to promote the
activities of an export trading company, which
are not in our view closely related to the business
of banking, is inappropriate for a number of
reasons. First, such use incorrectly implies that
the full faith and credit of the affiliated bank
stands behind the export trading company. Second, it could have an adverse effect on the
reputation and public confidence in the bank if
the export trading company were to suffer a
financial setback. Third, a greater likelihood
exists that the assets of the banking organization
would be depleted in order to bail out a troubled
export trading company with a similar name.
We have made the same recommendation for
bank participation in securities functions such as
stock and bond mutual funds. This recommendation has even greater force with respect to bank
holding company activity that breaches the line
between commerce and banking. Accordingly,
the Board supports the proposal that an export
trading company not bear a name similar to that
of its affiliated bank or bank holding company,
even when the bank holding company has a
controlling ownership interest in the export trading company.
H.R. 6016 also provides that an export trading
company owned by a bank holding company may
not engage in manufacturing. The Board's concern over control of export trading companies by
bank holding companies is based on a continuing
belief that the traditional separation of banking
and commerce is a wise policy; accordingly, we
favor legislation that limits the extent to which a
bank holding company may engage in commercial activities through the export trading compa-
352
Federal Reserve Bulletin • June 1982
ny, without significantly jeopardizing the viability of that company. I do not believe that a
prohibition on manufacturing would in any way
compromise the ability of export trading companies to play a constructive role in facilitating
exports. For example, if modifications to products are required, to have them performed by the
manufacturer, or by an independent manufacturer, rather than by the export trading company,
would seem both preferable and feasible. This
provision would further the basic principle of the
separation of the business of banking from the
conduct of commerce.
Finally, H.R. 6016 provides that the Board
approve each investment by a bank holding
company in an export trading company. In the
Board's view it is appropriate to allow some level
of noncontrolling investments (more than 5 percent but less than 20 percent) that may be made
in export trading companies without applying the
standards with respect to controlling interests in
export trading companies that we recommend
below, provided such investments meet the criteria in section 4 of the Bank Holding Company
Act. The Board anticipates that applications of
this type could be abbreviated and processed
under expedited procedures.
With regard to the standards on controlling
interests, H.R. 6016 as currently drafted, does
not, in our view, provide sufficient guidance as to
when the Board should disapprove an application to make a controlling investment in an
export trading company. The bill states that the
Board may not grant approval of any application
to acquire an interest in an export trading company unless the Board has taken into consideration
the financial and managerial resources, competitive situation, and future prospects of the bank
holding company and the export trading company involved. The legislation also gives the Board
authority to impose restrictions, by regulation or
otherwise, that the Board considers necessary to
prevent conflicts of interest, unsafe or unsound
banking practices, undue concentration of resources, and decreased or unfair competition.
In considering applications involving control,
an appropriate requirement might be that the
Board find a reasonable likelihood that the bank
investment would bring about an increase in the
level of exports or in the penetration of foreign
markets that would not otherwise occur. The
Board should be authorized to deny an application unless the activities of the export trading
company would be limited to international trade
in specific goods and services and unless the
bank investment could contribute substantially
both to the establishment of the trading company
and to exporting or facilitating the exportation of
goods and services.
Also, the bill should state that, if the Board
finds any adverse financial, managerial, competitive, or other banking factors associated with the
particular investment, it has the discretion to
approve the application only if it determines that
the export benefits clearly outweigh any such
adverse effects. These standards would place a
heavier burden on bank holding company applicants to demonstrate the benefits of their proposed investment. The balancing test would be
similar to the test that the Board administers in
acting upon applications pursuant to section
4(c)(8) of the Bank Holding Company Act. The
Board and its staff would, of course, be willing to
work with the subcommittee in drafting appropriate language to this effect.
In addition to its provisions regarding export
trading companies, H.R. 6016 would amend the
Federal Reserve Act to increase the aggregate
limitation on the amount of eligible bankers
acceptances that may be issued by a member
bank from 50 percent of capital and surplus (100
percent with the Board's permission) to 150
percent of capital and surplus (200 percent with
the Board's permission). The limitations would
be applied also to nonmember commercial banks
and to U.S. branches and agencies of foreign
banks.
The Board believes that both expanding the
current aggregate limitation on the issuance of
eligible bankers acceptances and applying those
limits to the other entities with which member
banks compete in the acceptance market are
appropriate. In applying the limitation on eligible
bankers acceptances to U.S. branches and agencies of foreign banks, the Board believes that the
appropriate measure of capital is the worldwide
capital of the parent foreign bank. Use of such a
measure in this country would be consistent with
the efforts being made to promote the use of
worldwide capital, rather than local-based capital, for purposes of prudential limitations imposed in other countries.
Statements
to Congress
353
The Board believes, however, that the provision as now drafted presents potential problems
with regard to participations. Under the existing
language, a bank could expand the amount of its
bankers acceptances outstanding virtually without limit by issuing participations to other banks.
Such a practice would undermine the effectiveness of the limits established by the bill and could
adversely affect monetary policy to the extent
that bankers acceptances are substituted for liabilities that would otherwise be subject to reserve requirements. We believe that this problem
could be corrected through a specific provision
that authorizes the Board to establish terms and
conditions under which participations in bankers
acceptances may be issued. In this connection,
the Board previously submitted a draft bill that
would not give rise to these problems and recom-
mends that this language be adopted in place of
the present provision.
In conclusion, I should restate the Board's
position that the U.S. economy would best be
served by having banking organizations assist
trading companies as bankers and limited investors rather than as owner-operators of these
firms. However, in the event that the legislation
is enacted that would enable banking organizations to have a controlling ownership investment
in export trading companies, the Board believes
that the restriction of the ownership interests in
export trading companies to bank holding companies, together with the other limitations on the
holding company's relationship to its controlled
trading company and on the activities of the
trading company itself that I have discussed, is
an important and necessary safeguard.
•
Statement by Preston Martin, Vice Chairman,
Board of Governors of the Federal Reserve System, before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, May 26,
1982.
ment. The Board's view is that disinflationary
policies will continue to succeed, contributing to
lower and more stable interest rates, and a
reversal of the pressure on the earnings and
capital of thrift institutions. The runoff of older
portfolio assets and the growing use of alternative mortgage instruments will also work to improve earnings. In the interim, however, special
measures are required to bridge the gap until
more normal operating conditions can be restored.
During the transition period, the regulatory
agencies need the tools to support those institutions with sound assets and satisfactory prospects, and to continue to reorganize or merge
those that will not be able to operate profitably
even in normal circumstances. By providing additional flexibility to the regulators, the bills
provide the agencies with the powers necessary
to deal with the transitional problems faced by
depository institutions—especially the nation's
thrift institutions.
The bills before the committee do not fundamentally alter the basic authority or role of the
agencies, but rather provide the framework for
assistance programs for those depository institutions that, with some support, would likely survive a period of financial stress, and also broaden
merger possibilities for those institutions that
probably cannot. The bills remove certain im-
I am pleased to appear before you to present the
Federal Reserve Board's views on S. 2531 (the
Capital Assistance Act of 1982) and S. 2532 (the
Deposit Insurance Flexibility Act). The Board
welcomes Senate consideration of the issues
raised by these two interrelated bills, supports
their objectives, and urges prompt Senate action
to increase the ability of the agencies to address
the current financial problems facing the nation's
thrift institutions.
As this committee well knows, the present
difficulties of the thrift industry, which S. 2531
and S. 2532 address, reflect the combination of
rising deposit costs and portfolios composed
largely of long-term, fixed-rate assets acquired in
periods of lower interest rates. As a result, thrift
institutions in the aggregate have suffered significant operating losses and their capital position is
being sharply eroded. The problem reflects the
general conditions of the economy and the money market, as well as the long-run effect of public
policies that have fostered portfolio concentration by thrifts in fixed-rate, long-term residential
mortgages, rather than endemic poor manage
354
Federal Reserve Bulletin • June 1982
pediments, under carefully prescribed circumstances, that experience shows limit the ability of
the regulators to deal with the practical realities
facing them. Up to the present time the regulators have been able to respond to the problems
under existing authority. However, the Board is
concerned that future circumstances may make it
extremely difficult—if not impossible—for the
agencies to find satisfactory solutions in specific
instances under existing statutory limitations.
Prudence dictates the removal of those existing
limitations that may result in more costly or
inefficient solutions or that have the potential to
widen the market impact of financial distress of a
few depository institutions.
S. 2532 is very similar to the regulators' bill
that Chairman Volcker recommended and endorsed in testimony on S. 1720 before this committee last fall. The bill now before the committee has two main elements. First, it broadens the
authority of the Federal Deposit Insurance Corporation (FDIC) and the Federal Savings and
Loan Insurance Corporation (FSLIC) to provide
financial assistance to distressed institutions if
such assistance will be less costly to the insurance funds than assisted mergers or liquidation.
Currently, the FDIC can only provide such assistance when it finds that both the particular
institution to be assisted is "essential" to the
community and the assistance is less costly than
other alternatives. The present statutory test
may hinder the ability of the FDIC to assist
institutions, particularly in markets where a large
number of depository institutions operate. In
these heavily served areas, the "essentiality"
test might be difficult to meet even though the
failure or liquidation of one or more institutions
might adversely affect confidence in the financial
services industry generally. Under S. 2532, the
FDIC would no longer be constrained by the
essentiality test. Rather, it could in addition
provide assistance to institutions that are likely
to be viable in the long run when "severe financial conditions exist that threaten the stability of
a significant number o f ' insured institutions.
Such assistance is conditioned on a finding that it
will "lessen the risk to the" insurance fund and
will be less costly than liquidation.
Second, S. 2532 provides clear and specific
guidance as to the circumstances under which
failing thrifts can be acquired by out-of-state
institutions or, as a last resort in those circumstances in which merger with another thrift is not
practicable, by bank holding companies. In order
to facilitate mergers, the bill also overcomes
limitations in some states that prohibit mutual
thrifts from converting to stock form.
Earlier this year the Federal Reserve authorized the acquisition of a financially distressed
non-FSLIC-insured savings and loan by a bank
holding company, as Chairman Volcker previously indicated might be necessary if the Board
were faced with an emergency situation. The
Board has also returned a proposed application
by a bank holding company to acquire a thrift
because the major activity that the applicant
proposed to undertake through the thrift—equity
real estate development—is not permitted to
bank holding companies. Other bank holding
companies recently have expressed interest in
acquiring thrifts, some of which are not in critical
condition. Consequently, the Federal Reserve
continues to believe that it is desirable for the
Congress to provide guidance on bank holding
company acquisitions of thrift institutions.
S. 2532 would provide this guidance.
The legislation would also authorize, under
carefully prescribed circumstances, the acquisition of a failing large bank by an out-of-state
bank or bank holding company. For several
years, the regulators have asked for such authority because of their concern that, in the event of
failure of a large bank, an in-state institution
capable of acquiring the failing bank may not
exist. Some observers have been concerned that
such authority—as well as bank holding company acquisitions of financially distressed thrifts—
might be used as a back-door method of undermining the principles established by the McFadden Act and Douglas amendment. However, the
prescribed procedures and limitations of the bill
assure that this provision will be used solely to
resolve serious individual problems and not to
facilitate a wholesale restructuring of the financial system.
The Board views the thrust of the Capital
Assistance Act of 1982 (S. 2531) as a logical and
desirable extension of the capital assistance authority of the Deposit Insurance Flexibility Act
(S. 2532). Capital infusion to institutions that
have a reasonable prospect of viability when
interest rates decline provides an efficient and
Statements
cost-effective tool as an alternative to immediate
liquidation or merger of financially distressed
institutions. Capital infusion provides time for
such institutions to rebuild their capital position
from future earnings. However, capital assistance should not be used to maintain the existence of institutions that find themselves in difficulty due to mismanagement or speculation
because they would be unlikely to recover even
under favorable circumstances in financial markets. S. 2531 explicitly addresses the latter concern by prohibiting capital infusion to cover
losses arising from mismanagement or speculation.
More generally, assistance is not automatic for
all low-capital institutions incurring losses. The
bill provides desirable discretion to the agencies
to assure that assistance is provided only to
those institutions that have reasonable prospects
for viability at lower interest rates. For these
depository institutions, the bill establishes an
initial schedule for capital infusion related to net
worth and actual losses—the lower the net worth,
the higher the amount of capital infusion that
may be provided. However, the size of capital
assistance called for by the schedule is always
less than actual losses, and hence continues to
bring market discipline to bear. The bill therefore
is not intended to allow a widespread "bailout"
of financially distressed banks or thrifts, and
indeed the terms and conditions under which
capital assistance may be provided assure that
such bailouts will not occur.
S. 2531 recognizes that no single schedule can
adequately take into account all of the practical
issues that the insurance funds may encounter. It
therefore permits the funds to depart from the
initial schedule and provide less or additional
assistance as the situation demands. However, in
no instance may assistance exceed an institution's losses for the "immediately preceding
period." While the approach established by the
bill appears to be adequate to meet the foreseeable temporary needs of depository institutions,
the Board would support additional flexibility
that would permit, in carefully circumscribed
instances, larger amounts of capital infusion if
such infusion would ultimately result in less cost
to the insurance funds. For example, specific
situations may arise when raising the capital ratio
of an institution with very low capital to a
to Congress
355
specific level, such as 2 percent, and maintaining
it at that level for a period would be desirable.
The Board believes in the importance of a capital
infusion program that provides the insurance
funds with discretion and flexibility to fashion
assistance programs to meet the unique needs of
individual institutions. Generally, S. 2531 provides considerable discretion, but the committee
may wish to consider minor modifications to
assure that a specific capital ratio can be
achieved and maintained when desirable in individual cases.
Without a capital infusion program, the number of assisted mergers and perhaps even liquidations would likely be larger, involving commitments by the insurance funds, all of which may
show up as current or future federal expenditures. While capital infusion under this bill requires no current outlays, the notes issued by the
insurance funds to the assisted institutions may
involve interest payments that will be reflected in
the budget. However, by forestalling the need for
mergers or liquidations of institutions that can be
viable in the long run, both current and future
budget expenditures should be reduced. Indeed,
by regarding capital assistance as net worth for
statutory and regulatory purposes, the bill may
prevent the need to merge or liquidate institutions that would otherwise be required to be
closed under state law. Still, the Congress may
later need to consider providing supplementary
resources to the insurance funds to help cover
their obligations incurred under S. 2531.
In conclusion, let me reiterate that the Federal
Reserve believes that the expanded authority
along the lines authorized by these two bills is
urgently needed, given the temporary circumstances faced by depository institutions. N o one
knows how long these difficulties will continue,
but without such legislation the Board is concerned that situations could develop in which the
regulators would be unable to address the problems of particular distressed institutions in a
prompt and cost-effective manner. The Federal
Reserve believes that there should be no question about the ability and willingness of the
government to assure the continued smooth
functioning of our financial system as required in
the public interest. Consequently, the Board
supports the objectives of these bills and urges
prompt action by the Senate along these lines.
356
Federal Reserve Bulletin • June 1982
Statement by J. Charles Partee, Member, Board
of Governors of the Federal Reserve
System,
before the Subcommittee on Domestic
Monetary
Policy of the Committee on Banking, Finance
and Urban Affairs, U.S. House of Representatives, May 26, 1982.
I am pleased to appear before this subcommittee
to discuss my views of the current financial
condition of our nation's businesses and its relationship to monetary and fiscal policy.
Recent headlines attest to the timeliness of
these hearings. Business failures have risen
sharply and are now at their highest levels of the
postwar period, and several extremely large
firms have filed for bankruptcy in recent weeks.
Beset by a very sluggish economy and sharply
declining profits and burdened by continuing
high interest rates, the financial health of the
business community has worsened steadily over
recent quarters. Moreover, this situation has
followed a more gradual weakening in financial
structure that has accompanied a decade and a
half of accelerating inflation. Indeed, growing
expectations of inflation encouraged businesses
to take risks they might not otherwise have
taken, to tolerate unbalanced debt structures,
and to accept unwarranted cost increases in
hopes that things would work out over time.
At the Federal Reserve we believe that the
financial situation of businesses will improve
gradually as the economy resumes its growth on
a steadier and less inflationary path. There are
encouraging signs that significant progress has
been made in laying the foundation for such
growth. Economic activity should be on a recovery trend later this year and substantial—though
still partial—success has been achieved in cooling inflation and inflation expectations. Nevertheless, the current financial difficulties seem
likely to persist for a while longer, and they are
of very substantial concern.
THE CURRENT
ENVIRONMENT
The proximate causes of the difficulties that
many business firms are now facing are the
extremely sluggish performance of the economy
and profits over the past several years and the
high levels of interest rates that have prevailed
during most of that time. Most companies typically experience both declining real sales and a
drop in profits during cyclical contractions, as
revenues fall off faster than costs can be cut
back. But what makes the profit squeeze we are
now witnessing so severe is that it comes on the
heels of three years of relatively sluggish growth
in profits. Also, the persistence of high interest
rates has added to the problems of businesses. In
the past, interest rates generally have fallen
sharply during periods of economic slack, providing some relief to businesses in meeting their
debt obligations and financing activities when
sales and revenues were depressed. The downward movement in rates in the current recession
has been quite limited thus far, reflecting a
variety of factors; these include the continued
nervous state of credit markets, the exceptionally heavy current and prospective financing of the
federal deficit, and the need to keep monetary
policy on a steady noninflationary course of
moderation.
Continuing high interest rates have had a particularly marked effect on businesses because
many firms have come to rely heavily on credit,
particularly short-term sources of funds, over the
years. At the same time, they have reduced their
cushion of liquid assets relative to their liabilities. These trends reflect basic shifts in corporate financing patterns that have been under way
for many years—trends fundamentally related to
the long period of substantial and intensifying
inflation to which our economy has been subjected.
BACKGROUND
The years since the mid-1960s have been marked
by tremendous changes in financial markets. The
major inducement to change has been the shift—
albeit a gradual one—from an environment of
relatively stable prices to one in which inflation
seemed to become a permanent and increasingly
pernicious feature of the economic landscape.
The most obvious effect of the accelerating price
movement was the irregular upward trend in
nominal interest rates. With the pace of inflation
quickening, lenders required larger premiums to
compensate for the anticipated reduction in purchasing power of the funds they would be repaid.
Statements
Borrowers, of course, were not happy to pay
higher rates, but for many years they were
willing to do so in the expectation that incomes
would rise to equal or exceed the general increase in prices. In addition, higher prices meant
that more and more funds were required to
finance any particular scale of activities. Because these needs consistently outpaced retained
earnings—a residual item in business operations—a large volume of outside funds had to be
raised and cost considerations favored doing this
in the credit markets.
In an inflationary environment, the attractiveness of debt relative to equity financing is enhanced, in part because tax laws treat interest
payments as tax deductible whereas dividend
payments are not. Thus, as nominal interest rates
rise to reflect inflation expectations, the increased interest payments by corporations are
partly offset by lower corporate taxes. In addition, equity financing becomes less attractive
because of the depressing impact of cost-push
inflation on corporate profitability and the higher
capitalization rates required by investors in
translating these profits into stock market values. Since 1972 many stock prices have shown
little increase and price-earnings ratios have
fallen to historically low levels. Therefore, corporations have come to rely more and more
heavily on debt in financing their inflated needs.
As corporations have turned increasingly to
debt markets for financing, the types and terms
of credit instruments being issued in these markets have been in process of change. For the
most part, these changes reflect efforts by both
borrowers and lenders to limit their exposure to
unexpected shifts in securities prices and interest
rates. Investors, threatened by the unanticipated
erosion in the capital value of their investments,
have become increasingly reluctant to commit
funds for long periods. Instead they have preferred short-term instruments in placing their
savings, so that returns would closely reflect
current interest rates and the risks of depreciation in market values would be largely avoided.
Even longer-term securities, as well as term
loans and residential mortgage contracts, now
often provide for adjustable rates or carry
shorter maturities. A major portion of new bond
issues coming to market currently have maturities of 15 years or less—a sharp contrast to the
to Congress
357
maturities of 25 years or longer prevalent in
earlier years.
The limited supply of funds available for longterm investment has prevented some corporations from funding their short-term liabilities,
while other corporations, concerned about the
high rates prevailing in bond markets, have been
reluctant to lock themselves into long-term liabilities at these high rates. As seems quite rational,
many have preferred instead to finance short
term in the expectation that rates will drop or
because they are uncertain about future rate and
price movements and wish to maintain some
flexibility. To be sure, we have seen some periodic spurts of activity in long-term bond markets, but only when long-term rates have dipped
and only because firms anticipated that further
reductions were unlikely. Thus, reflecting both
investor preference and corporate caution, the
emphasis on financing has substantially increased the importance of short-term to total
debt in nonfinancial corporations' balance
sheets.
The implications of this development for corporate vulnerability generally are hard to assess.
No doubt a high proportion of short-term debt
increases a firm's exposure to adverse developments in financial markets because the debt must
be rolled over at more frequent intervals. In the
past, such exposure could present serious problems even to highly rated firms during periods of
credit stringency because of institutional constraints that reduced the overall availability of
credit. In particular, low regulatory ceilings on
rates permitted to be paid on time deposits
sometimes resulted in disintermediation at banks
and other depository institutions when market
interest rates rose; this disintermediation effectively limited the supply of loanable funds at
these institutions. Usury ceilings also acted to
constrain lending in some cases.
Such constraints are of much less importance
in today's financial markets, however. Banks,
for example, are now able to bid competitively
for funds through the issuance of large certificates of deposit that pay market rates of interest.
Thus, these institutional lenders can continue to
meet the needs of all business borrowers able
and willing to pay the going rate. Many businesses now maintain substantial backup lines of
credit with banks, for which a fee is paid and
358
Federal Reserve Bulletin • June 1982
which can be drawn on in times of need. The
existence of these lines and the increased confidence by firms that they can borrow quickly if
circumstances dictate have led to a reduction in
the importance of liquid assets as a cushion
against unexpected drains on cash flow. Therefore, a rather pronounced decline in the corporate liquidity ratio, as shown in chart 3, does not
seem to me as significant as it might appear. 1
However, the combination of high interest
rates, an increased proportion of debt that can
quickly reflect these rates, and a heavier debt
burden generally have sharply increased the toll
of interest charges on available earnings. For all
nonfinancial corporations, the ratio of interest
charges to total earnings has risen from less than
10 percent in 1965 to a new high of more than 40
percent in the first quarter of 1982. The peaks in
the chart correspond to periods of recession, and
the sustained high ratio over the past two years
or so importantly reflects the weak profit performance of business in general as well as the
further deterioration caused by the recent cyclical decline. Nevertheless, the point is that interest—unlike dividends—must be paid, whether
current earnings are sufficient to cover it or not.
Any sustained failure to cover interest charges
will likely lead over time to bankruptcy.
Thus, one's concern about heavy debt service
charges becomes particularly acute when adverse developments affect a firm's product market and threaten its ability to generate profits and
cash flow. Strained liquidity positions and high
interest rates are very serious problems for such
companies because their ability to service their
debt has declined and the longer-run outlook for
earnings growth becomes more questionable.
The problems facing such businesses tend to be
cumulative: struggling companies are likely to
have their credit ratings lowered, making it more
costly and difficult to obtain credit. The greater
the extent of their borrowing in short-term markets or through issuance of variable-rate instruments, the more rapidly will their costs increase
and the greater will be the risk that they will be
unable to roll over maturing debt at any reasonable cost.
1. The charts to this statement are available on request
from Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.
The denial of credit to established borrowers is
a step that institutional lenders generally try to
avoid. Banks and other creditors are acutely
aware of the problems facing their customers and
have a strong interest in the continued operations
of firms whose long-term viability appears
sound. Concessions by creditors—such as deferrals of interest payments and extensions of maturity dates—have often been granted in recent
periods in efforts to work with debtors to overcome temporary setbacks, and no doubt these
concessions will continue to be made for borrowers whose difficulties appear to be transitory.
But in the current environment, as economic
activity has remained weak and interest rates
high, the problems of a good many firms have
come to seem too great to treat as a temporary
setback. The rising number of bankruptcies are
evidence of this, though I would note that the
rate of bankruptcy has risen less sharply because
of a very considerable growth in the total population of business firms over the years. Of course
many of the firms facing difficulties today have
suffered from critical errors in planning or from
domestic and international competition that has
increased their vulnerability to adverse conditions. Nevertheless, in this environment a danger
exists that loss of confidence in the ability of
business to grow and thrive could have a seriously depressing effect on investment and threaten
the economy's future performance. These are
matters that should and do greatly concern the
Federal Reserve Board and others in policymaking positions.
POLICY IMPLICATIONS
Let me, therefore, turn now to the implications
of these developments for economic policy. You
have asked me to address specifically two questions: First, how has the increase in corporate
use of short-term credit affected the growth of
the monetary aggregates and what has this meant
for policy? Second, looking ahead, what monetary or fiscal policy actions should be taken to
reduce the likelihood of a further deterioration in
corporate financial strength?
With regard to the first question, the shift in
business credit demands to short-term credit
markets has not been a significant problem for
Statements
the implementation of monetary policy. As you
know, the Federal Reserve formulates its monetary policy in terms of target ranges for the
growth rates of various measures of money over
one-year spans. We also specify a range for bank
credit growth thought to be consistent with money growth objectives; this measure contains as a
principal component the business loans outstanding at commercial banks. For 1982, we have
indicated our expectation that Ml would grow
toward the upper end of a 2V2 to 5xh percent
range, M2 within a 6 to 9 percent range, M3 in a
6V2 to 9V2 percent range, and aggregate bank
credit between 6 and 9 percent.
Business demands on banks for credit would
be unlikely to have any direct effect on M l , a
narrowly defined aggregate that comprises only
transaction balances. The public's holdings of
such balances depend primarily on the level of
nominal spending, on precautionary attitudes,
and on the opportunity cost of holding assets that
bear no or only a modest interest return; because
of the externally determined nature of the deposit balances that are a part of M l , banks cannot
use such balances as a flexible source of funds to
meet business credit needs. The broader aggregates, on the other hand, are affected by the
shifting composition of debt instruments. M3 in
particular might be expected to show the effects
of greater short-term borrowing by business
firms because it includes large certificates of
deposit and other market instruments, which are
sold more or less aggressively by banks to finance credit demands exceeding core deposit
growth. Both M2 and M3 include the shares of
the rapidly growing money market mutual funds,
which invest considerable amounts in commercial paper and bank CDs, but these balances are
thought to represent mainly funds that otherwise
would have been placed directly in M2- or M3type deposits.
While we pay careful attention to developments in bank credit and the broad M3 monetary
aggregate, however, the Federal Reserve typically places a good deal more emphasis on the
behavior of Ml and M2, both in operations and in
policy determination. This is so because these
variables are more susceptible to monetary control and also because they have exhibited a more
dependable historical relationship with ultimate
target variables—prices and output.
to Congress
359
I would like to turn now to the more basic
question of whether there should be any change
in the role that monetary policy plays to reduce
the likelihood of a further deterioration in corporate liquidity. In my view, two lessons stand out
plainly from the experience of the past 15 years.
First, it has become abundantly clear that we
must conduct our affairs so as to bring inflation
under control. Only then are interest rates likely
to move to permanently lower levels, and only
then will we see lasting improvement in the
financial health of the business community as a
whole. The rise of inflation, and the uncertainties
and distortions that accompanied it, were important factors that induced firms to structure their
financing in ways that made them more vulnerable to economic setbacks. Absent substantial
progress on reducing inflation, I fear that we will
see further gradual erosion of financial strength.
Second, success in achieving this objective requires systematic restraint in the growth of money and credit; inflation may originate from many
causes, but it can flourish over an extended
period only to the extent that it is accommodated
by excessive monetary expansion. Thus, the
Federal Reserve has been and continues to be
committed to a program of moderation in the
growth of money and credit as we work to
restore an environment conducive to noninflationary growth.
Recently, encouraging signs have appeared
that the national effort to slow inflation is bearing
fruit. Price increases at both the consumer and
the producer levels have been much reduced of
late, and there has been heartening—though still
only partial—progress in reducing the strong
upward trend in wages and other costs. Inflation
expectations are far from broken, however, as is
reflected in the failure of nominal interest rates to
follow the inflation rate down. Market perceptions that the Federal Reserve was backing away
from its commitment to financial discipline could
quickly undermine the progress that has been
achieved to date.
My final point concerns fiscal policy. Monetary restraint, especially when operating in isolation, falls unevenly on different sectors of the
economy, depending on their sensitivity to credit
conditions. In recent months, in my opinion, a
major cause of taut conditions in financial markets, and especially the high level of long-term
360
Federal Reserve Bulletin • June 1982
interest rates, has been the current budget impasse.
To reach an accord on the budget is therefore
crucial and, if it is to bring significant improvement in financial conditions, that accord must
offer specific and credible reductions in federal
deficits to take the place of the large year-byyear increases now in prospect. Once this has
been accomplished, I think we will have demon-
strated convincingly to the financial markets the
government's resolve to continue on with the
fight against inflation. Though I normally do not
engage in interest rate forecasts, I would venture
to say that this outcome should produce handsome dividends in the form of lower levels of
interest and restoration of a financial environment much more conducive to the revitalization
of American business.
•
361
Announcements
CAPITAL ADEQUACY
CRITERIA
The Federal R e s e r v e Board has m a d e public the
criteria for determining whether debt securities
issued by state m e m b e r banks and bank holding
companies with a mandatory requirement for
future conversion to equity can qualify as primary capital in a s s e s s i n g capital adequacy.
The Board will begin immediately to apply
these criteria, w h i c h also have b e e n adopted for
national banks by the Office of the Comptroller
of the Currency, to mandatory convertible issues
of state member banks and bank holding companies. H o w e v e r , the Board asked for c o m m e n t on
the criteria, to be submitted to the Secretary of
the Board by June 24, 1982. A n y changes subsequently made in the criteria would apply to
securities issued after the revision.
The Board and the Comptroller earlier had
adopted guidelines for assessing bank and bank
holding c o m p a n y capital adequacy to be used by
the t w o agencies in the examination and supervision of financial institutions they supervise. The
guidelines recognized the following as primary
capital: c o m m o n stock, perpetual preferred
stock, capital surplus, undivided profits, reserves for contingencies and other capital reserves, the allowance for possible loan l o s s e s ,
and mandatory convertible instruments. The criteria n o w issued are meant to clarify the characteristics that mandatory convertible i s s u e s must
have if they are to be included in primary capital.
The Board stressed that any organization that
n o w has a capital deficiency should regard the
sale of mandatory convertible securities as making up for the deficiency and not as the basis for
additional leverage.
The criteria are as follows:
On December 17, 1981, the Federal Reserve and the
Office of the Comptroller of the Currency issued
capital adequacy guidelines that are now being used by
these agencies in assessing the capital of well-managed
national banks, state member banks, and bank holding
companies. In implementing this capital program, the
agencies are using two principal capital measurements: (1) primary capital and (2) total capital. Primary
capital consists of common stock, perpetual preferred
stock, capital surplus, undivided profits, reserves for
contingencies and other capital reserves, mandatory
convertible instruments, and the allowance for possible loan losses. Total capital includes the primary
capital components plus limited life preferred stock
and qualifying subordinated notes and debentures.
As indicated, one of the components of primary
capital is mandatory convertible securities. Historically, banking organizations have issued mandatory convertible securities only on rare occasions. Recently, a
sizable amount of securities sold were designed to
qualify as mandatory convertible securities. A number
of banking organizations have expressed interest in
marketing similar securities and have inquired as to
whether the terms and conditions of their proposals
would qualify the issue for regulatory treatment as part
of the institution's primary capital. In view of this
interest, the Federal Reserve and the Office of the
Comptroller of the Currency have developed a set of
criteria that will be applied in determining whether a
particular issue qualifies as primary capital. In developing the criteria, the agencies wish to stress that the
principal determinant is the permanence of the funds
and the certainty with which the debt issue will be
replaced by permanent equity. In this respect, there
have thus far been two basic approaches to the concept of mandatory convertible securities. The first is a
so-called equity note that obligates the holder of the
note to purchase a like amount of stock in the issuing
institution. The second involves a note that obligates
the issuer to sell stock in sufficient amounts to replace
the debt obligation. In determining whether securities
qualify as primary capital, the following criteria will be
applied.
Securities
contracts
with mandatory
stock
purchase
The securities must mature in 12 years or less.
A stock purchase contract can be separated from a
security and held separately only if the holder of the
contract provides sufficient collateral to the issuer, or
to an independent trustee for the benefit of the issuer,
to assure performance under the contract. 1
1. Collateral is defined as cash or certificates of deposit;
U.S. government securities that will mature before maturity
of the equity contract and that have a par or maturity value at
least equal to the amount of the holder's obligation under the
362
Federal Reserve Bulletin • June 1982
Securities payable from sale of common
perpetual preferred stock
or
NOMINATIONS
TO
CONSUMER ADVISORY
COUNCIL
The securities must mature in 12 years or less.
The securities indenture must contain the following:
1. The issuer of the securities will establish a fund
(identifiable from the records of the bank or with a
separate trustee) solely from the sale of common or
perpetual preferred stock. This fund will be the sole
source of repayment of the securities.
2. By the time that one-third of the life of the
securities has run, the issuer must have paid into the
fund from the sale of common or perpetual preferred
stock an amount equal to one-third of the original
principal of the securities. By the time that two-thirds
of the life of the securities has run, the issuer must
have paid into the fund from the sale of common or
perpetual preferred stock an amount equal to twothirds of the original principal of the securities. The
issuer must have paid into the fund from the sale of
common or perpetual preferred stock an amount equal
to the final one-third of principal of the securities at
least 60 days prior to the maturity of the securities.
If a security is issued by a subsidiary of a bank or
bank holding company, any guaranty of the principal
by that subsidiary's parent bank or bank holding
company must be subordinate to the same degree as
the issue and limited to repayment of the principal
amount of the note at its final maturity. The funded
portions of the securities will be deducted from primary capital to avoid double counting. If the issuer
fails to meet any of these periodic funding requirements, its supervisor immediately will cease to treat
the unfunded securities as primary capital.
The Federal Reserve Board has announced that
it is seeking nominations of qualified individuals
for 13 appointments to its Consumer Advisory
Council, to replace members whose terms expire
on December 31, 1982.
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 2, 1982. Nominations
should include the name, address, and telephone
number of the nominee; past and present positions held; and special knowledge, interests, and
experience related to consumer financial matters.
The Consumer Advisory Council was established by the Congress in 1976, at the suggestion
of the Board, to advise the Board on the exercise
of its duties under the Consumer Credit Protection Act and on other consumer-related matters.
The Council meets four times a year.
General provisions applicable to any type of
mandatory convertible
issues
The Federal Reserve Board on May 13, 1982,
adopted amendments to its margin regulations
that change the criteria for inclusion on the
Board's list of stocks traded over the counter
(OTC list). The regulations are as follows: G
(Securities Credit by Persons Other than Banks,
Brokers, or Dealers); T (Credit by Brokers and
Dealers); and U (Credit by Banks for the Purpose
of Purchasing or Carrying Margin Stocks).
Inclusion of a stock on this list enables brokers
and dealers to lend on the stock in conformance
with the Board's margin requirements. About
1,500 stocks are on the Board's OTC list.
Further, the Board decided that future changes
in the OTC list, which is updated three times a
year, will become effective two weeks after
publication rather than immediately.
The following changes were adopted by the
Board:
1. Inclusion on the list of eligible foreign securities.
The aggregate amount of mandatory convertible securities must not exceed 20 percent of primary capital
other than mandatory convertible securities.
The issuer may redeem securities before maturity
only with the proceeds of the sale of common or
perpetual preferred stock of the bank or bank holding
company or with the approval of its primary supervisor.
The holder of the security cannot accelerate the
payment of principal except in the event of bankruptcy, insolvency, or reorganization.
The security must be subordinate in right of payment to all senior indebtedness of the issuer. In the
event that the proceeds of the security are reloaned to
an affiliate, the loan must be subordinated to the same
degree as the original issue.
stock purchase contract; standby letters of credit issued by a
U.S. bank that is not an affiliate of the issuer; or other
collateral as may be designated from time to time by the
regulators.
REGULATIONS
AMENDMENTS
G, T, AND
U:
Announcements
2. Setting of mandatory price and capital criteria for determining eligibility for the OTC list
(formerly, to be eligible, stocks could satisfy any
two of three criteria: price, capital, or market
value).
3. Reduction of requirements for initial listing
to a capital requirement of $4 million (rather than
$5 million), and the requirement for the number
of shares held publicly lowered to 400,000 (rather
than 500,000).
4. Reduction of requirements for continued
listing to capital of $1 million (rather than $2.5
million) and a listed price of $2 (rather than $5).
Stocks that no longer meet eligibility requirements under the new criteria for listing on the
Board's OTC list will be retained on the list for
two years. The Board believes the revisions
reflect changes in stock market conditions and
exchange practices since the last major revision
of the criteria in 1976.
REGULATION T: AMENDMENT
The Federal Reserve Board has amended its
Regulation T (Credit by Brokers and Dealers) to
broaden the types of collateral against which
brokers and dealers may borrow and lend securities, effective May 17, 1982.
The revision would permit brokers and dealers
to use as collateral letters of credit issued by
federally insured banks, U.S. government securities, certain bank certificates of deposit and
bankers acceptances, and letters of credit from
foreign banks that have filed a specified agreement with the Board. Previously, brokers and
dealers were able to borrow and lend securities
only against cash collateral.
PROPOSED
ACTIONS
The Federal Reserve Board has asked for public
comment on two proposed interpretations of
Regulation B (Equal Credit Opportunity) and on
the proposed withdrawal of three previously
proposed amendments to the regulation. The
Board requested comment by July 1, 1982.
The interpretations concern credit scoring and
are revisions of previous proposals following
staff assessment of comment received. As re
363
vised and proposed for further comment, they
are the following:
1. An interpretation concerning the use of
judgmental and credit scoring systems in the
treatment of income derived from alimony, child
support, separate maintenance, part-time employment, retirement benefits, or public assistance under the regulation's requirement forbidding exclusion of such income from
consideration.
2. An interpretation concerning the selection
and disclosure of reasons for adverse action on a
credit application.
At the same time the Board proposed to withdraw possible amendments to the business credit
provisions of Regulation B that were first published for comment in late 1978.
CHANGES IN BOARD STAFF
The Board of Governors has announced the
following official staff actions.
William R. Jones appointed Manager, Operations Review Program, Office of Board Members, effective July 12, 1982. Mr. Jones replaces
James Stull, who has joined the Federal Reserve
Bank of Dallas. Assigned to the Division of
Research and Statistics since coming to the
Board in May 1973, Mr. Jones received his Ph.D.
from the University of Maryland.
Sidney M. Sussan appointed Assistant Director, Division of Banking Supervision and Regulation, effective May 20, 1982. Mr. Sussan, who
has been at the Board since 1971, has a B.S. and
an M.B.A. from the University of Maryland and
has also attended the Stonier Graduate School of
Banking.
SYSTEM MEMBERSHIP:
ADMISSION OF STATE BANKS
The following banks were admitted to membership in the Federal Reserve System during the
period April 11 through May 10, 1982:
Texas
Grand Prairie
Wyoming
Glenrock
First State Bank
Security Bank of Glenrock
364
Record of Policy Actions of the
Federal Open Market Committee
Meeting Held on
March 29-30, 1982
1. Domestic Policy Directive
The information reviewed at this
meeting suggested that real GNP,
which had declined at an annual rate
of 4!/2 percent in the fourth quarter of
1981, fell appreciably further in the
first quarter of this year. However,
the level of final purchases in real
terms was sustained, and the contraction in activity apparently moderated during the quarter. Average
prices, as measured by the fixedweight price index for gross domestic business product, were estimated
to have risen much less than the
annual rate of 7.5 percent in the
preceding quarter.
The index of industrial production
rose 1.6 percent in February, after a
decline of 2.5 percent in January that
was accounted for partly by severe
winter weather. Although curtailments in output continued early this
year, the rate of decline in industrial
production from December to February was notably smaller than in the
last four months of 1981.
Like industrial production, nonfarm payroll employment in February recovered some of its January
decline. Over the two months the
average monthly decline amounted
to a little less than 100,000, compared with an average of about
300,000 in the fourth quarter. The
unemployment rate in February, at
8.8 percent, was the same as in December.
The nominal value of retail sales,
also distorted in January by the unusually severe weather, rebounded
in February to about the level in
December. Almost all categories of
retail sales increased in February
after having declined in January.
Unit sales of new domestic automobiles rose to an annual rate of 6.2
million in February, buoyed by rebates and other price concessions;
unit sales dropped in the first few
weeks of March despite the continuation of purchase-incentive programs, but remained above the depressed fourth-quarter rate.
The Department of Commerce
survey of business spending plans
taken in January and February suggested that current-dollar expenditures for plant and equipment in 1982
would be about IVA percent greater
than in 1981. The results implied a
year-to-year decline of about 1 percent in real terms.
Private housing starts edged up in
January and February from their unusually depressed pace in the fourth
quarter of 1981, but the annual rate
in February remained less than 1
million units for the seventh consecutive month. Sales of new and existing houses fell in January, reflecting
the adverse weather conditions in
many areas of the country in addition to the high level of mortgage
interest rates; sales of existing
homes picked up in February, but
sales of new homes declined markedly further.
The rise in both producer and consumer prices moderated substantially in the first two months of the year.
The producer price index for finished goods declined 0.1 percent in
February, after a rise of 0.4 percent
in January. Reductions in energy
prices and rebates on motor vehicles
contributed to the February decline
in producer prices and to a deceleration in consumer prices as well. The
Record of Policy Actions of the FOMC
consumer price index rose only 0.3
percent and 0.2 percent in January
and February respectively. The rise
in the index of average hourly earnings over the first two months of the
year remained at a reduced pace.
In foreign exchange markets the
trade-weighted value of the dollar
against major foreign currencies rose
about 4 percent further in February
and March, partly reflecting a widening of the differential between
U.S. and foreign interest rates during much of the intermeeting interval. However, the differential narrowed somewhat toward the end of
the period. Monetary authorities of
some foreign countries intervened
on a substantial scale to resist the
depreciation of their currencies. The
U.S. foreign trade deficit in January
and February was somewhat less on
average than in the fourth quarter,
reflecting declines in imports of both
oil and non-oil products. Exports
also declined further from the
fourth-quarter rate.
At its meeting on February 1-2,
1982, the Committee had adopted
the following ranges for growth of
the monetary aggregates over the
period from the fourth quarter of
1981 to the fourth quarter of 1982:
Ml, 2Vi to 5Vi percent; M2, 6 to 9
percent; and M3, 6V2 to 9Vz percent.
The associated range for bank credit
was 6 to 9 percent.
At the February meeting, the
Committee recognized that rapid
monetary growth over the recent
months had placed both Ml and M2
in January above the ranges adopted
for growth over the year. Consequently, the Committee had also decided that open market operations in
the period until this meeting should
be directed toward behavior of reserve aggregates over the balance of
the first quarter consistent with
bringing growth of Ml and M2 over
time into their longer-run target
ranges. For the period from January
to March, the Committee sought no
further growth in Ml and growth in
M2 at an annual rate of around 8
percent. It was also agreed that
some decline in M l , which would be
associated with a faster return to its
longer-run range, would be acceptable in the context of reduced pressure in the money market. The intermeeting range for the federal funds
rate, which provides a mechanism
for initiating consultation of the
Committee, was set at 12 to 16 percent.
After having grown rapidly for
three months, Ml declined at an
annual rate of about VA percent in
February and expanded only a little
in early March. A substantial contraction in demand deposits accounted for the decline in February, as
flows into other checkable deposits
continued strong. Growth of M2
slowed to an annual rate of AXU percent in February, reflecting a slackening of the expansion in its nontransaction component as well as the
decline in M l , but partial data suggested that growth accelerated in
March.
Nonborrowed reserves declined
substantially in February and then
turned up in March; in the statement
week ending March 24, such reserves remained somewhat below
the average for the month of January. Borrowings from Federal Reserve Banks for purposes of adjusting reserve positions averaged a
little less than $1.1 billion in the four
statement weeks ending March 24
compared with an average of $1.2
billion in four weeks ending January
27, although such borrowings averaged nearly $1.5 billion in the intervening four weeks.
The federal funds rate, which had
been about 14 percent in the days
preceding the February meeting,
generally fluctuated in a range of
133/4 to 15V2 percent during the subsequent intermeeting period. Most
other short-term market interest
rates declined Vi to 1 percentage
point on balance over the intermeeting interval and long-term yields fell
about V2 to 3/4 percentage point. The
prime rate charged by most commercial banks on short-term business
loans, which had been raised from
365
366
Federal Reserve Bulletin • June 1982
153/4 to I6I/2 percent on February 2,
was unchanged during the remainder
of the intermeeting period. Average
rates on new commitments for fixedrate home mortgage loans moved
down nearly Vi percentage point to
about 17 percent.
Total credit outstanding at U.S.
commercial banks, adjusted for
shifts of assets to IBFs, expanded at
an average annual rate of about 11
percent in January and February,
the same as in December. Growth in
total loans picked up in February,
and expansion in business loans continued sizable in both months. Issuance of commercial paper by nonfinancial institutions was quite strong
in February.
Staff projections presented at this
meeting suggested that real GNP
would begin to recover in the second
quarter and would expand moderately over the balance of 1982. The
unemployment rate was expected to
reach a peak in the second quarter,
while inflation, as measured by the
fixed-weight price index for gross
domestic business product, was projected to slow somewhat further
over the year.
Views of Committee members
concerning the most probable direction of economic activity and the
behavior of prices in the remaining
three quarters of 1982 generally differed little from the staff projections,
but several members emphasized the
unusual uncertainties that could produce a different result. The prospective cut in federal income taxes at
midyear and the current expansion
in defense orders and outlays, together with a reduction or a reversal
of inventory liquidation, were expected to contribute to economic
recovery before long; but whether
recovery would begin as early as in
the second quarter was questioned,
in part because a number of sensitive
indicators of activity had continued
to point to weakness. Concern was
also expressed that continuing deterioration in both agriculture and nonagricultural industries and regions
might dampen some types of con
sumer expenditures and overall outlays for plant and equipment. Moreover, there was a general feeling that
the recovery could be more restrained than in earlier cycles, partly
because financial stringency and
high interest rates had prevailed for
so long. With respect to inflation,
progress recently had been greater
than expected, and some further reduction in the underlying trend of
costs and prices was thought likely;
current price indicators were expected to show particularly small increases for some months.
The Committee considered objectives for monetary growth over the
period from March to June in light of
several circumstances bearing on the
recent and prospective behavior of
the monetary aggregates. It appeared that growth of both Ml and
M2 from January to March would be
close to the rates that the Committee
had specified for that period. Consistent with the targets established
for the year, however, slower
growth than in the first quarter as a
whole would be needed in the remaining quarters. The level of M2 in
March appeared close to the upper
end of its longer-run range.
A staff analysis suggested that the
demand for money in the three
months through June might be expected to moderate significantly
from its growth in the first quarter.
Growth of M1 on average in the first
quarter had been considerably greater than would have been predicted
on the basis of the actual behavior of
nominal GNP and interest rates; the
income velocity of Ml had declined
very sharply after a small decline in
the last quarter of 1981. Velocity
declines of this magnitude and duration have been rare in the postwar
period, and they were particularly
unusual in the absence of declines in
short-term interest rates.
The great bulk of the first-quarter
growth of Ml had occurred in NOW
accounts, suggesting that individuals
wished to hold increased liquid balances in an environment of considerable uncertainty about the prospects
Record of Policy Actions of the FOMC 44
for economic activity and interest
rates. That interpretation was supported by renewed growth over recent months in highly liquid savings
deposits that had relatively low
yields. In the course of the second
quarter, the accumulated liquidity
balances might be drawn down to
some extent, either for spending or
for investing in other assets, especially if the economy strengthened
and uncertainties were reduced.
Thus at some point, relatively slow
growth of M l , consistent with a fairly prompt return to its longer-run
range, could be associated with a
substantial rise in velocity. Should
the recently increased preference for
liquidity be more enduring, somewhat greater growth in Ml over time
might be needed to foster economic
recovery.
The task of judging the trend in
Ml and of implementing monetary
policy in the period immediately
ahead would be complicated by
problems involved in assessing the
pattern of monetary growth during
the early part of the second quarter.
Calculation of seasonal adjustments
for that part of the year is particularly difficult because of large tax payments, differences in the speed of
their processing, and uncertainties
about the size of tax refunds. The
behavior of Ml is also affected by
the extent to which funds accumulated in anticipation of tax payments
are held in Ml deposits or, for example, in money market mutual funds.
Seasonal factors allow for a large
rise in unadjusted Ml in April. However, the computation of the seasonal factors for the month has been
complicated by the sharp variation
in growth patterns in April for the
past two years and by the related
difficulties of isolating the impact of
such nonrecurring influences as the
credit control program in 1980 from
possible shifts in the seasonal influences over time. Thus, inherent difficulties in the seasonal adjustment
process as well as the usual uncertainties related to large tax payments
and refunds raised the possibility
that, while aiming at a second-quarter deceleration in monetary growth,
allowance would need to be made
for some bulge of growth in April.
Given the uncertainties about the
near-term economic prospects as
well as about the technical and other
factors affecting the monetary aggregates, almost all members of the
Committee felt that it would be desirable to set a course for the second
quarter as a whole designed to permit modest growth of M l , consistent
with moving toward the longer-run
growth objective over a period of
time. Considerable attention was
paid to evaluating the significance of
recent behavior of NOW accounts.
In the Committee's decision, the
point was made that the growth of
Ml since October could be traced
almost entirely to extraordinarily
rapid growth in NOW accounts. A
number of factors suggested that the
growth of NOW accounts, as well as
the accompanying growth in savings
accounts, reflected a desire of individuals to hold more highly liquid
assets, at least temporarily, in the
light of uncertainties about economic activity and interest rates. Growth
in demand deposits, which are held
by businesses as well as by individuals, had been sluggish. Moreover,
growth of the larger M2 aggregate,
especially since December, appeared generally in line with the
Committee's expectations.
Liquid balances accumulated in
NOW accounts might be drawn
upon in the second quarter, but if
they were not, an effort to return Ml
to its longer-run range might imply a
more restrictive policy than was intended or would be desirable. It was
suggested that if individuals evidenced a continuing desire to hold
large liquid balances, the Committee
would need to consider the implications of such a shift in liquidity preference for its range of growth of Ml
over 1982. At the same time, it was
noted that growth of Ml over a longer period extending back into 1981
understated the expansion of transaction balances to the extent that the
368
Federal Reserve Bulletin • June 1982
accumulation of shares in money
market mutual funds represented
such balances. Partly for that reason, some members suggested that a
stronger effort to reduce growth of
Ml would be desirable to maintain
pressure for continuation of the reduction in the rate of inflation.
Considering the pattern of growth
in the period ahead and the seasonal
uncertainties, most members believed that the behavior of Ml in
April should be evaluated partly in
light of the behavior of M2. Thus, for
example, relatively rapid growth
of Ml in April should be more readily accepted if M2 appeared to be
growing at a pace consistent with
the Committee's expectations for
growth over the year. Should Ml
growth in April be relatively rapid,
offsetting behavior in the ensuing
months would be expected. At the
same time, sentiment was expressed
for prompt efforts to contain an undue bulge in growth of Ml in April,
on the grounds that the absence of
such efforts would be interpreted as
a weakening of the Committee's
anti-inflationary stance and could
have adverse consequences in longterm bond markets.
At the conclusion of the discussion, the Committee decided to seek
behavior of reserve aggregates associated with growth of Ml and M2
from March to June at annual rates
of about 3 percent and 8 percent
respectively. It was understood that
most, if not all, of the expansion in
Ml over the period might well occur
in April, and within limits, an April
bulge in Ml alone should not be
strongly resisted. In any event, it
was agreed that deviations from
those targets should be evaluated in
light of the probability that over the
period, M2 would be less affected
than Ml by deposit shifts related to
the mid-April tax date and by
changes in the relative importance of
NOW accounts as a savings vehicle.
Some shortfall in growth of M l , consistent with progress toward the upper part of the range for the year as a
whole, would be acceptable in the
context of appreciably reduced pressures in the money market and relative strength of other aggregates.
The intermeeting range for the federal funds rate, which provides a
mechanism for initiating further consultation of the Committee, was set
at 12 to 16 percent.
The following domestic policy directive was issued to the Federal
Reserve Bank of New York:
The information reviewed at this meeting suggests that real G N P declined appreciably further in the first quarter of
1982 but that final purchases were sustained and the contraction in activity
moderated during the quarter; prices on
the average rose much less rapidly than
in the preceding quarter. In January
weakness in activity was accentuated by
unusually severe weather, and in February the nominal value of retail sales
rebounded while industrial production
and nonfarm payroll employment recovered part of their January declines. The
unemployment rate in February, at 8.8
percent, was unchanged from December. Although housing starts rose further
in the first two months of the year, they
remained at a depressed level. The rise
in both the consumer price index and the
producer price index for finished goods
moderated substantially, and the advance in the index of average hourly
earnings on the average remained at a
reduced pace.
The weighted average value of the
dollar against major foreign currencies
continued to rise strongly in February
and March; foreign monetary authorities
intervened on a substantial scale to resist
the depreciation of their currencies. The
U.S. foreign trade deficit in January and
February on the average was somewhat
less than the fourth-quarter rate.
Ml declined in February, after three
months of rapid growth, and then increased moderately in early March.
Growth of M2 slowed appreciably in
February, owing to a slackening of the
expansion in the nontransaction component as well as to the decline in M l .
Short-term market interest rates and
bond yields on balance have declined
since early February, and mortgage interest rates have edged down.
The Federal Open Market Committee
seeks to foster monetary and financial
conditions that will help to reduce inflation, promote a resumption of growth in
output on a sustainable basis, and contribute to a sustainable pattern of international transactions. At its meeting in
early February, the Committee agreed
Record of Policy Actions of the FOMC
that its objectives would be furthered by
growth of M l , M2, and M3 from the
fourth quarter of 1981 to the fourth quarter of 1982 within ranges of 2Vi to 5'A
percent, 6 to 9 percent, and 6Vi to 9V2
percent respectively. The associated
range for bank credit was 6 to 9 percent.
In the short run, the Committee seeks
behavior of reserve aggregates consistent with growth of M l and M2 from
March to June at annual rates of about 3
percent and 8 percent respectively. The
Committee also noted that deviations
from these targets should be evaluated in
light of the probability that M2 would be
less affected over the period than M l by
deposit shifts related to the tax date and
by changes in the relative importance of
NOW accounts as a savings vehicle.
Some shortfall in growth of M l , consistent with progress toward the upper part
of the range for the year as a whole,
would be acceptable in the context of
appreciably reduced pressures in the
money market and relative strength of
other aggregates. The Chairman may call
for Committee consultation if it appears
to the Manager for Domestic Operations
that pursuit of the monetary objectives
and related reserve paths during the period before the next meeting is likely to be
associated with a federal funds rate persistently outside a range of 12 to 16
percent.
Votes for this action:
Messrs.
Volcker, Solomon, Balles, Ford,
Gramley, Partee, Rice, Mrs. Teeters,
and Mr. Winn. Votes against this action: Messrs. Black and Wallich.
Messrs. Black and Wallich dissented from this action because they
favored specification of somewhat
lower rates for monetary growth
from March to June than those
adopted by the Committee, which
would be associated with a relatively
prompt return of Ml growth to its
range for the year. Mr. Black believed that continued growth of Ml
above its longer-run range for any
extended period would adversely affect economic activity by exacerbating inflationary expectations and
weakening markets for longer-term
securities; for that reason, he felt
that it was particularly important to
resist any surge in growth of Ml that
might develop in April. In Mr. Wallich's opinion, it would be desirable
to restrain the pace of the prospective recovery in economic activity,
consistent with some reduction in
the unemployment rate, to sustain a
degree of pressure for continuation
of the reduction in the underlying
rate of inflation.
2. Review of Continuing
Authorizations
At this, the first regular meeting of
the Federal Open Market Committee
following the election of new members from the Federal Reserve
Banks to serve for the year beginning March 1, 1982, the Committee
followed its customary practice of
reviewing all of its continuing authorizations and directives. The Committee reaffirmed the authorization
for domestic open market operations, the authorization for foreign
currency operations, the foreign currency directive, and the procedural
instructions with respect to foreign
currency operations in the forms in
which they were currently outstanding.
Votes for these actions: Messrs.
Volcker, Solomon, Balles, Black,
Ford, Gramley, Partee, Rice, Mrs.
Teeters, Messrs. Wallich and Winn.
Votes against these actions: None.
In reviewing the authorization for
domestic open market operations,
the Committee took special note of
paragraph 3, which authorizes the
Reserve Banks to engage in the lending of U.S. government securities
held in the System Open Market
Account under such instructions as
the Committee might specify from
time to time. That paragraph had
been added to the authorization on
October 7, 1969, on the basis of a
judgment by the Committee that
such lending of securities was reasonably necessary to the effective
conduct of open market operations
and to the implementation of open
market policies, and on the understanding that the authorization
would be reviewed periodically. At
this meeting the Committee concurred in the judgment of the Manager for Domestic Operations that the
369
370
Federal Reserve Bulletin • June 1982
lending activity in question remained
reasonably necessary and that the
authorization should remain in effect
on a continuing basis, with the understanding that the manager would
monitor the lending operation closely and would recommend discontinuing it in the event that it was no
longer reasonably necessary to the
effective conduct of open market operations.
3. Agreement with Treasury
to Warehouse
Foreign Currencies
At its meeting on January 17-18,
1977, the Committee had agreed to a
suggestion by the Treasury that the
Federal Reserve undertake
to
"warehouse" foreign currencies—
that is, to make spot purchases of
foreign currencies from the Exchange Stabilization Fund and
simultaneously to make forward
sales of the same currencies at the
same exchange rate to the ESF. Pursuant to that agreement, the Committee had agreed that the Federal
Reserve would be prepared to warehouse for the Treasury or for the
ESF up to $5 billion of eligible foreign currencies. At this meeting the
Committee reaffirmed the agreement
on the terms adopted on March 18,
1980, with the understanding that it
would be subject to annual review.
Votes for this action:
Messrs.
Volcker, Solomon, Balles, Black,
Ford, Gramley, Partee, Rice, Mrs.
Teeters, Messrs. Wallich and Winn.
Votes against this action: None.
4. Authorization for Domestic
Open Market Operations
On April 13-14, 1982, members of
the Committee voted to increase
from $3 billion to $5 billion the limit
on changes between Committee
meetings in System Account holdings of U.S. government and federal
agency securities specified in paragraph 1(a) of the authorization for
domestic open market operations,
effective immediately, for the period
ending with the close of business on
May 18, 1982.
Votes for this action:
Messrs.
Volcker, Solomon, Balles, Black,
Gramley, Martin, Partee, Rice, Mrs.
Teeters, Messrs. Wallich, Winn, and
Roos. Votes against this action:
None. Mr. Roos voted as alternate for
Mr. Ford.
This action was taken on recommendation of the Manager for Domestic Operations. The Manager
had advised that since the March
meeting, large-scale net purchases of
securities had been undertaken to
counter the effects on member bank
reserves of increases in currency in
circulation and in Treasury balances
at Federal Reserve Banks. The
amount of these purchases was approaching $3 billion, leaving no leeway for further purchases over the
current intermeeting interval. It appeared likely that sizable additional
purchases would be required in the
period ahead because of a projected
further rise in Treasury balances associated with expansion in tax receipts.
On April 26-27, the Committee
voted to approve an additional increase of $1 billion, to $6 billion, in
the intermeeting limit on changes in
holdings of U.S. government and
federal agency securities, after the
Manager had advised that the rise in
Treasury balances at Federal Reserve Banks apparently would be
considerably larger than anticipated
earlier.
Votes for this action: Messrs.
Volcker, Solomon, Black, Martin,
Partee, Rice, Mrs. Teeters, Messrs.
Wallich, Winn, Guffey, and Roos.
Votes against this action: None. Absent: Mr. Gramley. Messrs. Guffey
and Roos voted as alternates for
Messrs. Balles and Ford respectively.
371
Legal Developments
AMENDMENT
TO REGULATION
D
nate alternative market value criterion and make the
price and capital criteria mandatory, reduce the initial
listing capital and publicly-held share criteria, and
reduce the continued listing price and capital criteria.
These changes are the result of recent developments in
the securities, particularly the OTC market, and staff
experience administering the OTC list.
The Board of Governors has amended Regulation D—
Reserve Requirements of Depository Institutions
(12 CFR Part 204) to modify the reserve requirements
on nonpersonal time deposits. This action was taken in
light of the Depository Institution Deregulation Committee's authorization of a new category of ceiling-free
time deposit with an original maturity of VA years or
more which may be offered by depository institutions
in negotiable form.
This amendment is effective April 29, 1982. The first
reserve maintenance period to which the amendment
applies commences May 13, 1982.
Effective June 12, 1982, the Board amends Section
207.5 of Regulation G (12 CFR Part 207) by revising
paragraphs (d)(1), (4), and (7) through (9), and paragraphs (e)(1), and (4) through (7) to read as follows:
Part 204—Reserve Requirements
Institutions
Part 207—Securities Credit By Persons
Than Banks, Brokers, Or Dealers
of
Depository
Regulation G
Paragraph (a) of § 204.9 is revised to read as follows:
Section 207.5—Supplement
Section 204.9—Reserve requirement ratios
^^ ***
(a) Reserve percentages. The following reserve ratios
are prescribed for all depository institutions, Edge and
Agreement Corporations and United States branches
and agencies of foreign banks:
Reserve Requirement
Category
Net transaction accounts:
3 pet of amount.
$780,000 plus 12 pet of
amount over $26 million.
$0 to $26 million
Over $26 million
Nonpersonal time deposits:
By original maturity
(or notice period):
AMENDMENTS
TO REGULATIONS
0%
3%
G,
T, AND
U
The Board of Governors is amending its criteria for
inclusion on the List of OTC Margin Stocks ("Over
The Counter List"). These amendments will permit
inclusion of securities of certain foreign issuers, elimi
(1) The stock is registered under section 12 of the
Act (15 U.S.C. 781), is issued by an insurance
company subject to section 12(g)(2)(G) (15 U.S.C.
781(g)(2)(G)), is issued by a closed-end investment
management company subject to registration pursuant to section 8 of the Investment Company Act of
1940 (15 U.S.C. 80a-8), is an American Depository
Receipt of a foreign issuer whose securities are
registered under section 12 of the Act, or is a stock
of an issuer required to file reports under section
15(d) of the Act (15 U.S.C. 780(d)),
(4) The issuer or a predecessor in interest has been
in existence for at least three years,
3%
Less than 3'/2 years
3Vz yrs or more
Eurocurrency liabilities
Other
(7) There are 400,000 or more shares of such stock
outstanding in addition to shares held beneficially by
officers, directors, or beneficial owners of more than
10 per cent of the stock,
(8) The minimum average bid price of such stock, as
determined by the Board, is at least $5 per share,
and
(9) The issuer has at least $4 million of capital,
surplus, and undivided profits.
372
Federal Reserve Bulletin • June 1982
(e) ***
(1) The stock continues to be registered under section 12 of the Act (15 U.S.C. 781), or if issued by an
insurance company such issuer continues to be
subject to section
12(g)(2)(G)
(15
U.S.C.
781(g)(2)(G)), or if issued by a closed-end investment management company such issuer continues
to be subject to registration pursuant to section 8 of
the Investment Company Act of 1940 (15 U.S.C.
80a-8), is an American Depository Receipt of a
foreign issuer whose securities are registered under
section 12 of the Act, or is a stock of an issuer
required to file reports under section 15(d) of the Act
(15 U.S.C. 780(d)),
>fj
%
sf«
#
(4) Daily quotations for both bid and asked prices
for the stock are continuously available to the
general public,
(5) There are 300,000 or more shares of such stock
outstanding in addition to shares held beneficially by
officers, directors, or beneficial owners of more than
10 percent of the stock,
(6) The minimum average bid price of such stocks,
as determined by the Board, is at least $2 per share,
and
(7) The issuer has at least $1 million of capital,
surplus, and undivided profits.
Regulation T
Effective June 12, 1982, the Board amends Section
220.8 of Regulation T (12 CFR Part 220) by revising
paragraphs (h)(l)(4), and (7) through (9), and paragraphs (i)(l), and (4) through (7) to read as follows:
Part 220—Credit By Brokers and Dealers
Section 220.8—Supplement
(h) ***
(1) The stock is registered under section 12 of the
Act (15 U.S.C. 781), is issued by an insurance
company subject to section 12(g)(2)(G) (15 U.S.C.
781(g)(2)(G)), is issued by a closed-end investment
management company subject to registration pursuant to section 8 of the Investment Company Act of
1940 (15 U.S.C. 80a-8), is an American Depository
Receipt of a foreign issuer whose securities are
registered under section 12 of the Act, or is a stock
of an issuer required to file reports under section
15(d) of the Act (15 U.S.C. 780(d)),
(7) There are 400,000 or more shares of such stock
outstanding in addition to shares held beneficially by
officers, directors, or beneficial owners of more than
10 percent of the stock,
(8) The minimum average bid price of such stock, as
determined by the Board, is at least $5 per share,
and
(9) The issuer has at least $4 million of capital,
surplus, and undivided profits.
^ ***
(1) The stock continues to be registered under section 12 of the Act (15 U.S.C. 781), or if issued by an
insurance company such issuer continues to be
subject to section
12(g)(2)(G)
(15
U.S.C.
781(g)(2)(G)), or if issued by a closed-end investment management company such issuer continues
to be subject to registration pursuant to section 8 of
the Investment Company Act of 1940 (15 U.S.C.
80a-8), is an American Depository Receipt of a
foreign issuer whose securities are registered under
section 12 of the Act, or is a stock of an issuer
required to file reports under section 15(d) of the Act
(15 U.S.C. 780(d)),
(4) Daily quotations for both bid and asked prices
for the stock are continuously available to the
general public,
(5) There are 300,000 or more shares of such stock
outstanding in addition to shares held beneficially by
officers, directors, or beneficial owners of more than
10 percent of the stock,
(6) The minimum average bid price of such stocks,
as determined by the Board, is at least $2 per share,
and
(7) The issuer has at least $1 million of capital,
surplus, and undivided profits.
Regulation U
Effective June 12, 1982, the Board amends Section
221.4 of Regulation U (12 CFR Part 221) by revising
paragraphs (d)(1), (4), and (7) through (9), and paragraphs (e)(1), and (4) through (7) to read as follows:
Part 221—Credit by Banks for the Purpose of
Purchasing or Carrying Margin Stocks
Section 221.4—Supplement
^^ ***
(4) The issuer or a predecessor in interest has been
in existence for at least three years,
(1) The stock is registered under section 12 of the
Act (15 U.S.C. 781), is issued by an insurance
Legal Developments
company subject to section 12(g)(2)(G) (15 U.S.C.
781(g)(2)(G)), is issued by a closed-end investment
management company subject to registration pursuant to section 8 of the Investment Company Act of
1940 (15 U.S.C. 80a-8), is an American Depository
Receipt of a foreign issuer whose securities are
registered under section 12 of the Act, or is a stock
of an issuer required to file reports under section
15(d) of the Act (15 U.S.C. 780(d)),
(4) The issuer or a predecessor in interest has been
in existence for at least three years,
(7) There are 400,000 or more shares of such stock
outstanding in addition to shares held beneficially by
officers, directors, or beneficial owners of more than
10 percent of the stock,
(8) The minimum average bid price of such stock, as
determined by the Board, is at least $5 per share,
and
(9) The issuer has at least $4 million of capital,
surplus, and undivided profits.
(e) ***
(1) The stock continues to be registered under section 12 of the Act (15 U.S.C. 781), or if issued by an
insurance company such issuer continues to be
subject to section
12(g)(2)(G) (15
U.S.C.
781(g)(2)(G)), or if issued by a closed-end investment management company such issuer continues
to be subject to registration pursuant to section 8 of
the Investment Company Act of 1940 (15 U.S.C.
80a-8), is an American Depository Receipt of a
foreign issuer whose securities are registered under
section 12 of the Act, or is a stock of an issuer
required to file reports under section 15(d) of the Act
(15 U.S.C. 780(d)),
AMENDMENT
H
The Board of Governors has amended Regulation H—
Membership of State Banking Institutions in the Federal Reserve System, to conform a citation in the
footnote with regulatory changes adopted by the
Board.
In 1979, the Board revised its regulations dealing
with the foreign operations of member banks (Regulation M, 12 CFR Part 213) and foreign investment by
bank holding companies (§ 225.4(f) of Regulation Y,
12 CFR 225.4(f))- These regulations have been combined in a comprehensive regulation entitled "International Banking Operations" and designated as Regulation K (12 CFR Part 211).
Section 208.9(d) continues to cite Regulation M in
reference to a definition that presently appears in
§ 211.2(f) of Regulation K (12 CFR 211.2(f)). Consequently, the Board has amended § 208.9(d) to conform
with this regulatory change.
Effective April 28, 1982, the Board of Governors
amends Regulation H (12 CFR Part 208) as follows:
Part 208—Membership of State Banking
Institutions in the Federal Reserve System
Section 208.9—Establishment or maintenance
of branches
(d) Foreign branches. With prior Board approval, a
member state bank having capital and surplus of
$1,000,000 or more may establish branches in "foreign
countries," as defined in § 211.2(f) of Regulation K
(12 CFR 211.2(f)). If a member state bank has established a branch in such a country, it may, unless
otherwise advised by the Board, establish other
branches therein after 30 days' notice to the Board
with respect to each such branch.
AMENDMENT
(4) Daily quotations for both bid and asked prices
for the stock are continuously available to the
general public,
(5) There are 300,000 or more shares of such stock
outstanding in addition to shares held beneficially by
officers, directors, or beneficial owners of more than
10 per cent of the stock,
(6) The minimum average bid price of such stock, as
determined by the Board, is at least $2 per share,
and
(7) The issuer has at least $1 million of capital,
surplus, and undivided profits.
TO REGULATION
373
TO REGULATION
T
On November 10, 1981, the Board of Governors
published for comment a proposal to amend § 220.8(h)
Regulation T—Credit by Brokers and Dealers, to
permit brokers and dealers to borrow and lend securities against letters of credit issued by banks insured by
the Federal Deposit Insurance Corporation and
against U.S. government securities (46 FR 55533). The
existing rule requires a deposit of cash.
The Board has adopted a modified version of its
November 10, 1981 proposal.
Effective May 17, 1982, the board revises section
220.6(h) of Regulation T (12 CFR Part 220) by revising
it to read as follows:
374
Federal Reserve Bulletin • June 1982
Part 220—Credit By Brokers and Dealers
Section 220.6—Certain technical details
"(h) Borrowing and lending securities. Without regard to the other provisions of this part, a creditor may
borrow or lend securities for the purpose of making
delivery of the securities in the case of short sales,
failure to receive securities required to be delivered, or
other similar situations. Each borrowing shall be secured by a deposit of one or more of the following:
cash, securities issued or guaranteed by the United
States government or its agencies, negotiable bank
certificates of deposit and bankers acceptances issued
by banking institutions in the United States and payable in the United States, or irrevocable letters of
credit issued by a bank insured by the Federal Deposit
Insurance Corporation or a foreign bank that has filed
an agreement with the Board on Form F.R. T-2. Such
deposit made with the lender of the securities shall
have at all times a value at least equal to 100 per cent
of the market value of the securities borrowed, computed as of the close of the preceding business d a y . "
BANK HOLDING COMPANY AND BANK
MERGER
ORDERS ISSUED BY THE BOARD OF
GOVERNORS
Orders Issued Under Section 3 of Bank Holding
Company Act
Sun Banks of Florida, Inc.,
Orlando, Florida
Order Approving Merger of Bank Holding
Companies and Acquisition of C. B. I. Insurance
Agency, Inc. and Century Computer Services, Inc.
Sun Banks of Florida, Inc., Orlando, Florida ( " S u n " ) ,
a bank holding company within the meaning of the
Bank Holding Company Act, has applied for the
Board's approval under section 3(a)(5) of the act
(12 U.S.C. § 1842(a)(5)) to merge with Century Banks,
Inc., Fort Lauderdale, Florida ( " C e n t u r y " ) , also a
bank holding company, under the charter and name of
Sun.
Sun has also applied for the Board's approval under
section 4(c)(8) of the act (12 U.S.C. § 1843(c)(8)) and
section 225.4(b)(2) of the Board's Regulation Y
(12 CFR § 225.4(b)(2)), to acquire C. B. I. Insurance
Agency, Inc., Fort Lauderdale, Florida ( " C . B. I.
Insurance"), and thereby engage in the activity of
acting as agent or broker for the sale of credit life and
accident and health insurance directly related to extensions of credit by Century's subsidiaries. Sun also
proposes to acquire Century Computer Services, Inc.,
Fort Lauderdale, Florida ("Century Computer Services"), and thereby engage in the activity of providing
bookkeeping or data processing services for the internal operations of Century and its subsidiaries and
storing and processing other banking, financial, or
related economic data, such as performing payroll,
accounts receivable or payable, or billing services.
These activities have been determined by the Board to
be closely related to banking (12 CFR §§ 225.4(a)(8)
and (9)).
Notice of these applications, affording opportunity
for interested persons to submit comments and views,
has been given in accordance with sections 3 and 4 of
the act (46 Federal Register 47012 (1981)). The time for
filing comments and views has expired, and the Board
has considered the applications and all comments
received, including those of the Antitrust Division of
the United States Department of Justice, and the
Association of Data Processing Service Organizations,
Arlington, Virginia ( " A D A P S O " ) , in light of the factors set forth in section 3(c) of the act (12 U.S.C.
§ 1842(c)), and the considerations specified in section
4(c)(8) of the act (12 U.S.C. § 1843(c)(8)).
Sun, the third largest commercial banking organization in Florida, controls 15 subsidiary banks with
aggregate deposits of $2.9 billion, which represent 7.3
percent of total deposits in commercial banks in the
state. 1 Century, the eleventh largest commercial banking organization in Florida, controls 11 subsidiary
banks with aggregate deposits of approximately $917
million, which represent 2.3 percent of total deposits
in commercial banks in the state. Upon consummation
of the proposal and all planned divestitures, Sun would
remain the third largest banking organization in Florida, and its share of total deposits in commercial banks
in the state would increase to 8.8 percent.
In analyzing the effects on competition presented by
a particular proposal, the Board begins by determining
the relevant product and geographic market involved.
As Sun has noted in its application, the business of
commercial banking is the relevant line of commerce
for the purpose of assessing the effects of a proposed
merger or acquisition involving commercial banking
organizations. 2
The delineation of the relevant geographic market or
markets must correspond to commercial banking reality and must be economically significant. 3 Applying
that principle to this case, the Board concludes that
1. Statewide banking data are as of September 30, 1981.
2. United States v. Philadelphia National Bank, 374 U.S. 321, 356
(1963).
3. See Brown Shoe Co. v. United States, 370 U.S. 294, 336-37
(1962).
Legal Developments
Sun's proposed merger with Century should be analyzed in terms of competitive effects in the individually
delineated local banking markets where the various
banks involved are either existing or probable future
competitors. The Supreme Court has stated in cases
involving mergers between local banks operating in
local markets, that the relevant geographic market
encompasses the area in which the banks involved
operate and to which their customers can practicably
turn for alternatives. 4
This proposal, however, presents issues regarding
possible anticompetitive effects associated with combinations of competing bank holding company systems
that operate and market banking services and products
in broadly distributed geographic markets throughout
the state, including most of the significant economic
areas within the state. 5 Neither the courts nor the
Board have addressed the proper definition of the
relevant geographic market in such a case. The Board
is reviewing the relevance and suitability of utilizing a
statewide concept, in addition to traditional market
definitions based on the locations of the banks involved, in its evaluation of mergers of competing
statewide banking organizations. The Supreme Court
has recognized the existence of more than one relevant
geographic market "in cases in which the acquired
firm markets its products or services on a local,
regional, and national basis." 6
After carefully considering the facts of this case, the
Board concludes that the record does not show that
consummation of this proposal would result in a
significant increase in concentration of commercial
banking resources in the state or is otherwise likely to
produce any substantial anticompetitive effects in the
state.
The seven localized banking markets in which banking subsidiaries of both Sun and Century operate
offices are the Gainesville, Orlando, South Brevard
County, Eastern Palm Beach County, Fort Myers,
Miami-Fort Lauderdale, and Pinellas County banking
markets.
4. See United States v. Philadelphia National Bank, 374 U.S. at
359.
5. For example, most of Florida's major banking markets are
served by subsidiaries of Sun and Century. Sun's 15 banking subsidiaries operate in 19 Florida banking markets, which contain approximately 76 percent of the state's population. Banking subsidiaries of
Century operate in seven of these 19 markets, and also in two Florida
markets not currently served by Sun. Century has pursued an active
expansion program and its plans for expansion in many Florida
markets suggest a capacity to provide a growing competitive force in
the state. Sun's 113 staffed offices constitute the second largest office
network in the state; and Sun operates the state's largest on-line
automated teller machine ("ATM") system, consisting of over 100
machines. Century currently offers ATM services through certain of
its subsidiaries, and has stated its plan to offer ATMs in each of the
markets served by its subsidiaries during 1982.
6. United States v. Marine Bancorporation,
418 U.S. 602, 621
(1974).
375
Gainesville Banking Market. In the Gainesville
banking market, 7 Sun's banking subsidiary, Sun Bank
of Gainesville, Gainesville, Florida, is the second
largest commercial banking organization and holds
$49.9 million in deposits, which represent 14.7 percent
of deposits in commercial banks in the market. 8 Century's banking subsidiary in this market, Century Bank
of Gainesville, Gainesville, Florida ("Gainesville
Bank"), is the seventh largest commercial banking
organization and holds $18.7 million in deposits, which
represent 5.5 percent of deposits in commercial banks
in the market. Upon consummation of the proposed
merger, absent any planned divestiture, the four-firm
concentration ratio in the Gainesville market would
increase from approximately 64.1 percent to approximately 69.6 percent. Sun would remain the second
largest banking organization in the market and would
control about 20.2 percent of the total deposits in
commercial banks in the market.
Orlando Banking Market. In the Orlando banking
market, 9 Sun's banking subsidiary, Sun Bank, N.A.,
Orlando, Florida, is the largest commercial banking
organization and holds $748.1 million in deposits,
which represent 37.7 percent of deposits in commercial banks in the market. Century's banking subsidiary
in this market, Century Bank of Orange County,
Apopka, Florida ("Orange County B a n k " ) , holds $52
million in deposits, which represent 2.3 percent of
deposits in commercial banks in the market. Upon
consummation of the proposed merger, absent any
planned divestiture, the market's four-firm concentration ratio would increase from approximately 69.9
percent to approximately 72.2 percent. Sun would
remain the largest banking organization in the market
and would control about 40 percent of the total deposits in commercial banks in the market.
South Brevard County Banking Market. In the
South Brevard County banking market, 1 0 Sun's banking subsidiary, Sun First National Bank of Brevard
County, Melbourne, Florida, is the largest commercial
banking organization and holds $71.8 million in deposits, which represent 23.5 percent of deposits in commercial banks in the market. Century's banking subsidiary in this market, Century National Bank of
Brevard, Melbourne, Florida ("Brevard Bank"), is
the sixth largest commercial banking organization in
the market and holds $21 million in deposits, which
represent 6.9 percent of deposits in commercial banks
7. The Gainesville banking market is approximated by Alachua
County, Florida.
8. Banking data relating to the seven localized banking markets are
as of June 30, 1980.
9. The Orlando banking market is approximated by Orange County,
Florida, and the southern portion of Seminole County, Florida.
10. The South Brevard County banking market is approximated by
that part of Brevard County, Florida, south of the town of Bonaventure, Florida.
376
Federal Reserve Bulletin • June 1982
in the market. As a result of the proposed merger,
absent any planned divestiture, the market's four-firm
concentration ratio would increase from approximately 78.0 percent to approximately 84.9 percent. Sun
would remain the largest banking organization in the
market and would control about 30.4 percent of the
total deposits in commercial banks in the market.
In the Board's view, the effect of the merger of the
banking subsidiaries of Sun and Century in the Gainesville, Orlando and South Brevard County banking
markets may be substantially to lessen existing competition, were Sun to retain Century's banking subsidiary
in any of these markets after consummation of this
proposal. However, Sun has contracted to cause the
transfer of Gainesville Bank to Flagship Banks, Inc.,
Miami, Florida, and Brevard Bank to First Bankers
Corporation of Florida, Pompano Beach, Florida.
Both of these proposed acquisitions have received the
Federal Reserve's prior approval." Sun has committed that both of these acquisitions will be consummated on or before the date of consummation of the
proposed merger of Sun and Century.
The proposed divestiture of Gainesville Bank and
Brevard Bank conform to the Board's divestiture
policy as stated in its Order approving the acquisition
by Barnett Banks of Florida, Inc., Jacksonville, Florida, of First Marine Banks, Inc., Riviera Beach, Florida. 12 The Board concludes that, in the circumstances
of this case, the proposed sales of Gainesville Bank
and Brevard Bank, which will be consummated on or
before consummation of Sun's proposed merger with
Century, will eliminate the substantial adverse effects
on existing competition that Sun's merger with Century would otherwise produce in the Gainesville and
South Brevard County banking markets.
Sun has contracted to cause the transfer of Orange
County Bank to Barnett Banks of Florida, Inc., Jacksonville, Florida ( " B a r n e t t " ) . Sun has also committed
to cause the divestiture of Orange County Bank on a
date no later than the date of the consummation of the
proposed merger of Sun and Century. Barnett has
applied to the Comptroller of the Currency for prior
approval to acquire Orange County Bank. If Barnett
does not receive regulatory approval within a sufficient time to allow its acquisition of Orange County
Bank on or before the date of Sun's proposed merger
with Century, Sun has committed that Orange County
Bank would be transferred to independent trustees. 1 3
11. 6 7 FEDERAL RESERVE B U L L E T I N 9 2 1 ( 1 9 8 1 ) ( B r e v a r d B a n k ) ; 6 8
FEDERAL RESERVE B U L L E T I N 7 3 ( 1 9 8 2 ) ( G a i n e s v i l l e
Bank).
12. 6 8 FEDERAL RESERVE B U L L E T I N 1 9 0 ( 1 9 8 2 ) . S e e a l s o
Corporation,
InterFirst
6 8 F E D E R A L RESERVE B U L L E T I N 2 4 3 ( 1 9 8 2 ) .
13. The trust is for a period beginning no later than the date of the
consummation of the Sun and Century merger and ending no later
than 31 days after such required regulatory approval is obtained. If
In view of the fact that Sun's application was filed
with the Board well before the Board's announcement
of its divestiture policy and considering the proposed
trust arrangement for the Orange County Bank, the
Board concludes that the proposed sale of Orange
County Bank will eliminate the substantial adverse
effects on existing competition that Sun's merger with
Century would otherwise produce in the Orlando
banking market.
Eastern Palm Beach County Banking Market. In the
Eastern Palm Beach County banking market, 1 4 Sun's
banking subsidiary, Sun First National Bank of Palm
Beach County, Delray Beach, Florida, is the seventh
largest commercial banking organization and holds
$142.4 million in deposits, which represent 5.9 percent
of deposits in commercial banks in the market. Century's banking subsidiary in this market, Century National Bank of Palm Beach County, West Palm Beach,
Florida, is one of the smallest of 27 banking organizations in the market and holds $31 million in deposits,
which represent 1.1 percent of deposits in commercial
banks in the market. The market's four-firm concentration ratio is about 51.6 percent, and would not
change as a result of this proposal. Upon consummation of the proposal, Sun would become the fifth
largest banking organization in the market, but its
share of total deposits in commercial banks in the
market would only increase to slightly over 6.9 percent.
Fort Myers Banking Market. In the Fort Myers
Banking market, 15 Sun's banking subsidiary, Sun
Bank/Southwest, Cape Coral, Florida ( " S u n ' s Fort
Myers Bank"), is the second largest commercial banking organization and holds $172.7 million in deposits,
which represent 15.3 percent of deposits in commercial banks in the market. Century's banking subsidiary
in this market, Century Bank of Lee County, Lehigh
Acres, Florida ("Century's Fort Myers Bank"), is the
ninth largest commercial banking organization in the
market and holds $37 million in deposits, which represent 3.3 percent of deposits in commercial banks in the
market. The market's current four-firm concentration
ratio is about 72.8 percent, and upon consummation of
this proposal would increase to approximately 76.1
percent. The Board notes that the market's four-firm
approval is not obtained within six months, the trustees are directed to
sell the shares of Orange County Bank. Sun has represented that the
co-trustees of this trust will be Barnett, and Trust Company of
Georgia, Inc., Atlanta, Georgia.
14. The Eastern Palm Beach County banking market is approximated by Palm Beach County, Florida, excluding the area surrounding the
cities of Belle Glade and Pahokee, Florida.
15. The Fort Myers banking market is approximated by Lee
County, Florida.
Legal Developments
concentration ratio has fallen from 84 percent in 1970
to approximately 73 percent in 1980. Consummation of
the proposal would only marginally increase Sun's
deposit holdings and market share of deposits, and
would leave its market rank unchanged.
In the Board's view, the anticompetitive effects
associated with the proposal in the Fort Myers market
are mitigated by the particular geographic characteristics of the market, by the locations of Sun's Fort
Myers Bank and Century's Fort Myers Bank within
the market, and by the large number of commercial
banking organizations already represented in the market. For example, Century's Fort Myers Bank is
located on the eastern fringe of the market and is
substantially surrounded by rural and largely unsettled
areas, which may reduce the extent to which it provides active banking competition to other areas of the
market. 16 The Board also notes that there are no state
or federal barriers to entry into or expansion within the
Fort Myers market. 1 7
Miami-Fort Lauderdale Banking Market. Sun maintains two banking subsidiaries in the Miami-Fort Lauderdale banking market: 18 Sun Bank of Miami, Miami,
Florida, and Sun Bank/Broward, N.A., Fort Lauderdale, Florida. Together, these subsidiaries constitute
the sixth largest commercial banking organization in
the market and hold $435.3 million in deposits, which
represent 3.8 percent of deposits in commercial banks
in the market. Century's banking subsidiary in the
market, Century National Bank of Broward, Fort
Lauderdale, Florida, is the eighth largest commercial
banking organization and holds $375 million in deposits, which represent 3.2 percent of deposits in commercial banks in the market. Consummation of this proposal would increase Sun's deposit holdings in the
market to about $810.3 million, and Sun would become
the third largest banking organization in the market.
However, the Miami-Fort Lauderdale banking market
is relatively unconcentrated. The market's current
four-firm concentration ratio is approximately 41.2
percent and, upon consummation of the proposal, the
16. In addition, the Fort Myers market is divided from roughly
southwest to northeast by the Caloosahatchee River. Sun's Fort
Myers Bank is located in Coral Gables, Florida, a community southwest of Fort Myers on the west bank of the river. Century's Fort
Myers Bank is located in Lehigh Acres, Florida, a community to the
east of the river approximately 25 miles from the center of Cape Coral.
Thirteen commercial banking organizations are represented in the
market. These organizations together maintain 44 offices, and eight of
the major organizations in the market are subsidiaries of large Florida
bank holding companies.
17. Cf. Hartford National Corporation,
68 FEDERAL RESERVE
BULLETIN 242 (1982) (state law prohibited branching into subject
market).
18. The Miami-Fort Lauderdale banking market is approximated by
Dade and Broward Counties, Florida.
377
four-firm ratio would increase to approximately 43
percent.
Pinellas County Banking Market. In the Pinellas
County banking market, 1 9 Sun's banking subsidiary,
Sun Bank/Suncoast, St. Petersburg, Florida, is the
third largest commercial banking organization and
holds $239 million in deposits, which represent 7.7
percent of deposits in commercial banks in the market. 20 Century's banking subsidiary in this market,
Century First National Bank of Pinellas County, St.
Petersburg, Florida ("Pinellas County Bank"), is the
sixth largest commercial banking organization and
holds $204.5 million in deposits, which represent 6.6
percent of deposits in commercial banks in the market.
Absent any planned divestiture, consummation of
this proposal would increase Sun's deposit holdings in
the market to about $443.5 million, and cause Sun to
become the largest commercial banking organization
in the market, with approximately 14.4 percent of
deposits in commercial banks in the market. However,
the Pinellas County banking market is relatively unconcentrated, with a four-firm concentration ratio of
33.1 percent, and many of the largest Florida bank
holding companies compete in this market. Upon
consummation of this proposal, the concentration ratio would increase to 39.7 percent.
On the basis of the above facts and other facts of
record, the Board concludes that the effects of consummation of the proposal on existing competition in
the Eastern Palm Beach County, Fort Myers, MiamiFort Lauderdale, and Pinellas County banking markets would not be substantially adverse.
Sun has contracted to cause the transfer of Pinellas
County Bank to Royal Trust Bank Corp., Miami,
Florida ("Royal Trust"), to eliminate whatever anticompetitive effects this merger might otherwise produce in the Pinellas County market. Sun has committed to cause the divestiture of Pinellas County Bank on
a date no later than the date of the consummation of
the proposed merger of Sun and Century. 2 1
With regard to probable future competition, Century
is represented in two Florida banking markets, Pensa-
19. The Pinellas County banking market is approximated by Pinellas County, Florida.
20. The Board notes that the Pinellas County market contains 11
savings and loan associations that hold $4.4 billion in deposits
compared with $3.1 billion in deposits held by the 36 commercial
banks in the market.
21. Royal Trust has applied to the Federal Reserve System for prior
approval to acquire Pinellas County Bank. If Royal Trust does not
receive regulatory approval within a sufficient time to allow its
acquisition of Pinellas County Bank on or before the date of Sun's
proposed merger with Century, Sun has committed to transfer Pinellas
County Bank under terms and conditions similar to those regarding
the divestiture of Orange County Bank. (See note 13, supra.)
378
Federal Reserve Bulletin • June 1982
cola and Putnam County, 2 2 in which Sun is not currently represented. The Pensacola banking market is
not highly concentrated, with a three-firm concentration ratio of 42.2 percent. Century's subsidiary in the
Putnam County Banking market, Century Bank of
Palatka, Palatka, Florida, is the third largest of three
commercial banking organizations and holds deposits
of $19.6 million, representing 17.7 percent of deposits
in commercial banks in the market. There appear to be
numerous probable future entrants into the Putnam
County banking market, and in any event, the market
does not appear attractive for de novo entry.
Sun is represented in twelve Florida banking markets in which Century is not represented. Eight of
these markets are not highly concentrated. The remaining four markets do not appear attractive for
foothold or de novo entry and the Board cannot
conclude, on the basis of this record, that Century is
reasonably likely to enter any of these four markets by
alternative means. Accordingly, on the basis of the
above and other facts of record, the Board concludes
that consummation of the proposal would result in no
significantly adverse effects upon probable future
competition in these markets.
The financial and managerial resources of Sun,
Century, and their subsidiaries are regarded as generally satisfactory, and their future prospects appear
favorable. Accordingly, banking factors are consistent
with approval of the proposal. Consummation of this
proposal may enable the combined organization to be
more successful in attracting the deposits and credit
business of large commercial enterprises engaged in
internationally related activities. In addition, Sun has
stated that the proposed merger would enable Sun to
provide significantly improved trust services to customers of subsidiaries of Sun and Century. Sun has
also stated that consummation of the merger will allow
Sun to offer various corporate cash management services to an extent not currently provided by either Sun
or Century. Based upon all facts of record, including
the competitive aspects of Applicant's proposal, the
Board finds that convenience and needs considerations are consistent with approval.
With respect to the applications by Sun submitted
pursuant to section 4(c)(8) of the act, C. B. I. Insurance is currently engaged in the activity of acting as
agent or broker for the sale of credit life and accident
and health insurance directly related to extensions of
credit by Century's banking and nonbanking subsidiaries. Century Computer Services is currently engaged
in the activity of providing bookkeeping or data proc22. The Pensacola banking market is approximated by Santa Rosa
and Escambia Counties, Florida, and the Putnam County banking
market is approximated by Putnam County, Florida.
essing services for the internal operations of Century
and its subsidiaries, and storing and processing other
banking, financial, or related economic data, such as
performing payroll, accounts receivable or payable, or
billing services. The Board notes that it was previously
determined that the balance of public interest factors
prescribed by section 4(c)(8) of the act favored approval of Century's earlier applications to engage in each of
these activities through C. B. I. Insurance and Century Computer Services. 23 Nothing in the record of these
applications suggests that Sun's acquisition of C. B. I.
Insurance or Century Computer Services would alter
that balance. Additionally, there is no substantial
evidence in the record that acquisition of either
C. B. I. Insurance or Century Computer Services
would result in undue concentration of resources,
decreased or unfair competition, conflicts of interest,
unsound banking practices, or other adverse effects on
the public interest. 24 Accordingly, the Board has determined that the balance of public interest factors it
must consider under section 4(c)(8) of the act favors
approval of the applications filed under that section.
Based on the foregoing and other considerations
reflected in the record, the Board has determined that
the applications under sections 3(a)(5) and 4(c)(8) are
approved. 25 The merger of Sun and Century shall not
be made before the thirtieth calendar day following the
effective date of this Order, or later than three months
after the effective date of this Order unless such period
is extended for good cause by the Board or the Federal
Reserve Bank of Atlanta, under delegated authority.
Acquisition of the nonbank subsidiaries under section
4(c)(8) is subject to the conditions set forth in section
225.4(c) of Regulation Y, and to the Board's authority
to require such modification or termination of the
activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance
with the provisions and purposes of the act and the
23. The Federal Reserve Bank of Atlanta, pursuant to delegated
authority, approved Century's applications to acquire the predecessor
to Century Computer Services on May 1, 1974, and C. B. I. Insurance
on March 18, 1979.
24. The Board notes that Sun also owns subsidiaries that engage in
activities similar to those engaged in by C. B. I. Insurance and
Century Computer Services. However, Century's nonbank subsidiaries, with the exception of the Jacksonville office of Century Computer
Services, serve only Century's banking subsidiaries. With regard to
the activities of Century Computer Services, the Board notes that
competitors engaging in these activities are not confined to the
Jacksonville market and that the market share of Century Computer
Services in that market is small.
25. The Board notes that this disposition is consistent with the
recommendation of the Antitrust Division of the United States Department of Justice, which concluded that the proposed merger would
not have a significantly adverse effect on competition, provided that
the divestitures of Orlando Bank, Brevard Bank, and Gainesville
Bank are effected with competitively suitable purchasers concurrently
with consummation of the merger.
Legal Developments
Board's regulations and orders issued thereunder, or
to prevent evasion thereof.
By order of the Board of Governors, effective
May 6, 1982.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, and Rice. Voting against this action:
Governor Teeters. Absent and not voting: Governor Gramley. Governor Wallich abstained from consideration of the
applications to acquire C. B. I. Insurance and Century Computer Services.
( S i g n e d ) JAMES MCAFEE,
[SEAL]
Associate
Concurring Statement
Secretary
of Governor
of the Board.
Rice
I am voting to approve this application as submitted
because I do not regard the facts of this case, in light of
the current competitive structure of banking in Florida
and the size and market shares of the organizations
involved, as presenting sufficiently substantial anticompetitive effects to warrant denial. However, I
share some of the concerns expressed in the Dissenting Statement of Governor Teeters with respect to
statewide concentration of banking resources. Furthermore, I wish to emphasize my view that applications involving combinations of bank holding company
systems that operate and market their services on a
statewide basis present significant issues regarding
possible anticompetitive effects in the state as a whole
as well as localized markets. I believe the Board
should carefully examine these issues in all cases in
which they are presented, and that the Board should
consider developing a policy to address these concerns.
would exceed the current horizontal merger guidelines
of the United States Department of Justice, which the
Board has stated it would consider in its own analysis
of existing competition. These factors indicate that a
substantial amount of competition may be eliminated
by consummation of this proposal.
With respect to competition in Florida as a whole, I
believe that consummation of the proposal would
increase statewide concentration and substantially
lessen statewide competition. Century is a large, able,
and aggressive bank holding company that constitutes
a significant competitive force in the state. The record
indicates that Century operates eleven banking subsidiaries in nine banking markets throughout Florida,
most of which rank among the most economically
important in the state. Century's plans for expansion
in many Florida markets demonstrate a capacity to
provide a growing competitive force. Century has
obtained approval to open additional branches in five
broadly dispersed markets, has filed an application in a
sixth market, and has stated its intention to file additional applications in five of Florida's fast growing
markets. Consummation of this proposal eliminates
Century as a competitive force in Florida and is likely
to substantially lessen competition in Florida. I believe
that if the Board were to regularly approve applications such as this, the ultimate effect would be the
elimination of all but a few large statewide banking
competitors.
In my view, the competitive effects of this proposal
are not outweighed by considerations relating to the
convenience and needs of the community to be served
and accordingly, I would deny this application.
May 6, 1982
M a y 6, 1982
Dissenting Statement
of Governor
Teeters
I believe that consummation of Sun's acquisition and
divestiture plan would tend to substantially lessen
competition in the Fort Myers banking market and the
State of Florida as a whole.
In the Fort Myers market, Sun is the second largest
commercial banking organization and holds about 15.3
percent of the market's deposits, and Century is the
ninth largest commercial banking organization and
holds about 3.3 percent of the market's deposits.
Century's bank in this market is a viable competitor
that will be eliminated upon consummation of this
proposal. In addition, upon consummation of this
proposal, the market's four-firm concentration ratio
would increase to 76.1 percent from 72.8 percent. A
combination of competitors holding these market
shares in a market with this level of concentration
379
Orders Issued Under Section 4 of Bank Holding
Company Act
BankEast Corporation,
Manchester, New Hampshire
Order Conditionally Approving
Guaranty Savings Bank
Acquisition
of
BankEast Corporation, Manchester, New Hampshire,
a bank holding company within the meaning of the
Bank Holding Company Act, has applied for the
Board's approval under section 4(c)(8) of the act
(12 U.S.C. § 1843(c)(8)) and section 225.4(b)(2) of the
Board's Regulation Y (12 C F R § 225.4(b)(2)) to acquire Portsmouth Trust Company, Portsmouth, New
Hampshire ("Portsmouth"), an organization engaged
in the activities of a guaranty savings bank in New
380
Federal Reserve Bulletin • June 1982
Hampshire. 1 The Board has by order approved the
acquisition of New Hampshire guaranty savings banks
by New Hampshire bank holding companies, determining that the operation of such an institution was
closely related to banking in New Hampshire. 2 However, the operation of a guaranty savings bank has not
been specified by the Board in section 225.4(a) of
Regulation Y as permissible for bank holding companies.
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been duly published. The time for filing comments and
views has expired and the Board has considered the
application and all comments received in light of the
factors set forth in section 4(c)(8) of the act (12 U.S.C.
§ 1843(c)(8)).
BankEast (consolidated deposits of $360.5 million)
operates four commercial banks, two guaranty savings
banks, and a mortgage company. 3 In terms of time and
savings deposits held by commercial banks and thrift
institutions in New Hampshire, BankEast ranks third
with total time and savings deposits of $315.2 million
and a 5.3 percent statewide share. 4 Portsmouth (deposits of $51.4 million) is a guaranty savings bank and
ranks 31st, with $52.0 million in time and savings
deposits and a 0.9 percent statewide share. Thus,
affiliation would increase BankEast's statewide share
of time and savings deposits from 5.3 to 6.2 percent
and BankEast would remain third largest in the state.
BankEast operates one commercial bank, First National Bank of Rochester with deposits of $19.2 mil1. A guaranty savings bank is essentially the same as a mutual
savings bank except that the former is a stock institution. That is, the
ownership of the equity interest in a guaranty savings bank is vested in
the holders of the capital stock or special deposits. Under current law,
guaranty savings banks may engage not only in typical savings bank
activities such as accepting time and savings deposits, acting as
fiduciary, and dealing in real estate mortgage financing, but also in
typical commercial bank activities including accepting demand deposits and commercial lending activities that exceed those permissible for
thirfts under federal statutes. Although BankEast does not intend to
implement Portsmouth's demand deposit powers in the near future,
Portsmouth does offer NOW accounts and has notified the state
supervisor of its intention to engage in commercial lending as permitted under state law. The subject application has been accepted and
processed under section 4 of the act and is approved only on the
condition that Portsmouth limit its commercial lending activity to that
currently permissible to thrift institutions under federal statute law.
2. BankEast
Corporation,
6 8 F E D E R A L RESERVE B U L L E T I N
116
(1982); First Financial Group, 66 FEDERAL RESERVE BULLETIN 594
( 1 9 8 0 ) ; Heritage
( 1 9 8 0 ) ; Profile
Banks,
Bankshares,
Inc.,
Inc.,
6 6 F E D E R A L RESERVE B U L L E T I N
590
6 1 F E D E R A L RESERVE B U L L E T I N 9 0 1
(1975).
3. All financial data are as of June 30, 1981, and include acquisitions
as of March 1, 1982.
4. In view of the fact that commercial banks are authorized to olfer
products and services offered by thrifts and do in fact compete to an
extent for the market's time and savings deposits (commercial banks
hold 24.4 percent of all IPC time and savings deposits in the market),
the competitive analysis in this case has been made using market
percentages of IPC time and savings deposits. This analysis reflects a
product market including all thrift institutions and further takes into
account the competitive impact of commercial banks on thrifts.
lion, and one guaranty savings bank, Rochester Savings Bank and Trust Company with deposits of $127.5
million, in the Portsmouth-Dover-Rochester banking
market. 5 In terms of Individuals, Partnerships and
Corporations (IPC) time and savings deposits (held by
all market depository institutions), BankEast ranks as
the second largest with an 11.1 percent market share.
Portsmouth operates two offices in the PortsmouthDover-Rochester banking market where it ranks as
sixth largest with a 5.0 percent market share. Thus,
consummation of the proposed transaction would
make BankEast the largest depository organization in
the relevant market with 16.1 percent of IPC time and
savings deposits in the market.
The Board has previously determined the operation
of a New Hampshire guaranty savings bank by a New
Hampshire bank holding company to be so closely
related to banking as to be a proper incident thereto. In
its 1975 approval of an application by Profile Bankshares, Inc., (later changed to Heritage Banks Inc.,
and acquired by BankEast in March 1982) to acquire a
guaranty savings bank, the Board found that, in view
of the similarity of services of savings banks and
commercial banks, 6 the unique structural and competitive situation in New Hampshire, 7 and other relevant
factors in that case, the proposed activity was so
closely related to banking in New Hampshire as to be a
proper incident thereto. 8 In 1980, the Board reaffirmed
this determination, although the Board noted that
since 1975 some modest changes in the structural and
competitive circumstances of N e w Hampshire had
occurred. 9 Finally, in January 1982, the Board again
confirmed this determination. 1 0 Because no evidence
has been presented to show that banking conditions
have substantially changed in New Hampshire since
the Board's consideration of this issue earlier this
year, and because BankEast must limit Portsmouth's
deposit-taking or commercial lending activities to remain under the nonbanking provisions of the Bank
5. The Portsmouth-Dover-Rochester banking market is approximated by the Portsmouth-Dover-Rochester SMSA, plus the towns of
Nottingham, Strafford, N e w Durham, Brookfield, Middleton, Milton,
and Wakefield, all in N e w Hampshire, and Lebanon, Maine.
6. The Board noted that each of the main customer services offered
by guaranty savings banks (accepting time and savings deposits,
acting as a fiduciary and dealing in real estate mortgage financing) are
generally offered by commercial banks.
7. The Board noted that guaranty savings banks are unique to N e w
Hampshire and, of the six guaranty savings banks operating in that
state, three were affiliated with commercial banks.
8 . Profile
Bankshares,
Inc.,
6 1 F E D E R A L RESERVE B U L L E T I N 9 0 1
(1975). In contrast, in the absence of such an unusual situation, the
Board has regarded the operation of a thrift institution as a proper
incident to banking only where compelling public benefits, unachievable by other means, are present.
9 . First
Financial
( 1 9 8 0 ) ; Heritage
Group,
Banks
Inc.,
6 6 F E D E R A L RESERVE B U L L E T I N
594
6 6 F E D E R A L RESERVE B U L L E T I N
590
6 8 F E D E R A L RESERVE B U L L E T I N
116
(1980).
10. BankEast
(1982).
Corporation,
Legal Developments
Holding Company Act, the Board confirms its finding
that the operation of a guaranty savings bank may be
so closely related to banking in New Hampshire as to
be a proper incident thereto. Notwithstanding this
general finding, the Board must also consider the
particular facts of this case to determine whether the
proposed acquisition is a proper incident to banking,
that is, whether it " c a n reasonably be expected to
produce benefits to the public, such as greater convenience, increased competition, or gains in efficiency,
that outweigh possible adverse effect such as undue
concentration of resources, decreased or unfair competition, conflicts of interest, or unsound banking
practices."
Consummation of the proposed transaction would
not appear to have any significantly adverse effects
upon the concentration of banking resources in New
Hampshire. However, BankEast and Portsmouth are
competitors in the Portsmouth-Dover-Rochester
banking market. The acquisition by BankEast, with an
11.1 percent market share, of Portsmouth, with a 5.0
percent market share, would give BankEast 16.1 percent of the market's IPC time and savings deposits,
and would increase its rank in the market from second
to first. The anticompetitive effects evidenced by
market share data have been found by the Board to be
substantially mitigated by the following factors: 1) the
Portsmouth-Dover-Rochester market is not highly
concentrated and has shown deconcentration over
time; 2) existing offices of BankEast and Portsmouth
are located at the extreme ends of the newly defined
market, approximately 20 road miles through a tollway; and 3) after affiliation, 14 commercial banking
organizations (including the three largest in New
Hampshire and two of the three largest in Maine), 11
savings banks and savings and loan associations, and
14 credit unions would remain in the market. Based
upon the above and other facts of record, the Board
concludes that consummation of this proposal would
not result in any serious decrease in competition, or
undue concentration of resources.
In considering previous applications under the act
involving the affiliation of commercial banks and guaranty savings banks in New Hampshire in 1980 and
1982, the Board noted the potential for serious conflicts of interests, unfair competition, and circumvention of the Regulation Q interest rate differential,
which might arise from the operation of these two
types of institutions at nearby locations or in close
mutual support of each other ("tandem operations"). 1 1 In order to limit these potentially adverse
11. BankEast
( 1 9 8 2 ) ; First
Corporation,
Financial
Group,
(1980).
6 8 F E D E R A L RESERVE B U L L E T I N
116
6 6 FEDERAL RESERVE B U L L E T I N 5 9 4
381
effects, the Board approved those previous cases, but
imposed certain conditions barring the two types of
institutions from conducting tandem operations. The
Regulation Q interest rate differential on account categories in existence in December 1975 remains in effect
until the Depository Institutions Deregulation Committee eliminates rate ceilings, or until March 31,1986.
In addition, it does not appear that relevant considerations have changed since January 1982 when the
Board last reiterated its policy against tandem operations of thrifts and commercial banks. Accordingly,
the Board believes that the following conditions must
be imposed in connection with its approval of this
application: 1) BankEast will not establish any commercial bank facility within the service area of any
office of Portsmouth without Board consent; and 2)
BankEast will not shift assets or liabilities from Portsmouth to any other subsidiary, or from any other
subsidiary to Portsmouth. 1 2
Except as discussed above, the Board has found
that no other adverse effects are likely to result from
consummation of this proposal. In addition, it appears
that the proposed affiliation would produce several
public benefits including providing Portsmouth with
better access to capital, enhancing Portsmouth's ability to compete for retail loans and deposits, introducing
secondary mortgage capabilities to Portsmouth, establishing ATMs for Portsmouth, and offering counseling
services to municipalities in the market.
Based upon the foregoing and other considerations
reflected in the record, the Board has determined that
the balance of public interest factors the Board is
required to consider under section 4(c)(8) is favorable
provided that BankEast and Portsmouth abide by the
conditions set forth herein. Accordingly, the application is hereby conditionally approved, subject to the
limitations described above relating to the commercial
lending activities of Portsmouth, and restrictions relating to tandem operations between BankEast's commercial and guaranty savings bank subsidiaries. This
determination is further subject to the conditions set
forth in section 225.4(c) of Regulation Y and to the
Board's authority to require such modification or
termination of the activities of a holding company or
any of its subsidiaries as the Board finds necessary to
assure compliance with the provisions and purposes of
the act and the Board's regulations and orders issued
thereunder, or to prevent evasion thereof.
The transaction shall be made not later than three
months after the effective date of this Order, unless
12. These conditions remain effective so long as these institutions,
or their successors remain affiliated. However, BankEast may apply
for relief from these conditions when the Regulation Q interest rate
differential has been eliminated, or if the Board changes its policy
regarding tandem operations.
382
Federal Reserve Bulletin • June 1982
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Boston.
By Order of the Board of Governors effective
May 10, 1982.
Voting for this action: Vice Chairman Martin and Governors Partee, Teeters, and Gramley. Absent and not voting:
Chairman Volcker and Governors Wallich and Rice.
( S i g n e d ) JAMES MCAFEE,
[SEAL]
Associate
Secretary of the Board.
Central Pacific Corporation,
Bakersfield, California
Order Concerning Application
Impermissible
Activities
Involving
Central Pacific Corporation, Bakersfield, California, a
bank holding company within the meaning of the Bank
Holding Company Act, has applied for the Board's
approval under section 4(c)(8) of the act (12 U.S.C.
§ 1843(c)(8)) and section 225.4(b)(2) of the Board's
Regulation Y (12 CFR § 225.4(b)(2)), to acquire the
outstanding guarantee stock of Kern Savings and Loan
Association, Bakersfield, California ( " K e r n " ) , and
Kern's wholly-owned service corporation, Kern Financial Services, Inc. ( " K F S I " ) . Kern, with $39.4
million in assets, is a state-chartered federally-insured
savings and loan association.
Upon consummation of the proposed transaction,
Applicant would engage through Kern in the activity
of operating a savings and loan association, and
through KFSI in service corporation activities permissible under state law. KFSI engages in various activities, including the participation in joint ventures for
development of multi-family dwellings in the Bakersfield area, and proposes to engage in additional real
estate development. Although the Board has by order
in individual cases determined that the operation of a
thrift institution is closely related to banking, 1 the
Board has determined that real estate development
activities, such as those performed by K F S I , are not
closely related to banking under the act. 2 Notwithstanding that fact, Applicant has proposed that notice
of opportunity for hearing regarding the activities be
published in the Federal Register.
Section 225.4(a) of Regulation Y, (12 CFR 225.4(A))
provides that a bank holding company may file an
application to engage in activities other than those
determined to be permissible for bank holding compa-
1. See, Interstate Financial Corporation (Board Press Release of
April 4, 1982); and American Fletcher Corp., 60 FEDERAL RESERVE
BULLETIN 8 6 8 ( 1 9 7 4 ) .
2 . 12 C F R § 2 2 5 . 1 2 6 .
nies, if it is of the opinion that the proposed activity in
the circumstances surrounding a particular case is
closely related to banking or managing or controlling
banks. The regulation further provides that the Board
will publish in the Federal Register a notice of opportunity for hearing regarding the proposed activity only
if it believes that there is a reasonable basis for the
bank holding company's opinion. In NCNB Corp. v.
Board of Governors of the Federal Reserve
System,
599 F.2d 609 (4th Cir. 1979), the court held that the
burden of demonstrating that a reasonable basis exists
for a closely related determination rests with an applicant.
Applicant asserts that there is a reasonable basis for
concluding that its proposed real estate development
activities are closely related to banking because these
activities should be viewed as part of the " c l u s t e r " of
activities offered by the savings and loan association
( " S & L " ) . Thus, according to Applicant, the operation
of an S&L, together with any activities of a subsidiary
service corporation, should be viewed as a whole that
is closely related to banking. 3 Applicant's basis for this
assertion is the "Thrift S t u d y " issued by the Board's
staff in September 1981. The Board has reviewed the
analysis in the Thrift Study and concludes that it does
not present a reasonable basis for concluding that real
estate development activities are closely related to
banking. The study merely states that the " c l u s t e r "
approach might be a way to resolve the conflict
between section 4(c)(8) of the act and the powers
authorized for S&Ls. On the other hand, as noted
above, the Board has long held that real estate development activities are not closely related to banking
within the meaning of section 4(c)(8) of the act and are
thus impermissible for a bank holding company or any
direct or indirect nonbanking subsidiary thereof.
(12 CFR § 225.126.) The Board believes that an activity that is otherwise impermissible for bank holding
companies is not rendered permissible simply because
that activity is performed by a direct or indirect
nonbanking subsidiary of the holding company.
In determining whether there is a reasonable basis
for an applicant's opinion that a proposed activity is
closely related to banking, the Board has found the
guidelines set forth in National Courier Association v.
Board of Governors of the Federal Reserve
System,
516 F.2d 1229 (D.C. Cir. 1975), to be useful. In that
case, the court stated that a finding that an activity is
closely related to banking could be made where it is
demonstrated that banks generally have provided the
proposed services; that banks generally provide serv-
3. Applicant advances other arguments (for example, that Kern is a
financially troubled S&L) that relate to the "proper incident" standard of the act, and are not relevant to the closely related issue raised
by the proposed real estate development activities.
Legal Developments
383
Chase Manhattan Corporation, New York, New York
("Applicant"), a bank holding company within the
meaning of the Bank Holding Company Act, has
applied for the Board's approval, under § 4(c)(8) of the
act (12 U.S.C. § 1843(c)(8)) and § 225.4(b)(2) of the
Board's Regulation Y (12 C F R § 225.4(b)(2)), to acquire through its wholly-owned subsidiary, Chase
Home Mortgage Corporation ( " C H M C " ) , substantially all of the assets of Suburban Coastal Corp., Wayne,
New Jersey ("Coastal"), a mortgage banking subsidiary of Suburban Savings and Loan Association,
Wayne, New Jersey ("Suburban S & L " ) . Coastal is
engaged in the activities of originating and servicing
one-to-four-family residential mortgages, the provision of data processing services for itself and Suburban S&L, and selling as agent credit life, accident and
health insurance. Each of these activities has been
determined by the Board to be closely related to
banking (12 CFR §§ 225.4(a)(1), (3), (8), and (9)).
Notice of the application, affording opportunity for
interested persons to submit comments on the public
interest factors, has been duly published (47 Federal
Register 19791). The time for filing comments has
expired, and the Board has considered the application
and all comments received in light of the public
interest factors set forth in section 4(c)(8) of the act.
Applicant, with total consolidated assets of $77.8
billion, is the second largest banking organization in
New York State and the third largest in the United
States. 1 Applicant engages through subsidiaries in a
variety of nonbanking activities, including commercial
financing, leasing and factoring.
Through its subsidiary, CHMC, Applicant also originates and services mortgage loans. C H M C operates
eleven loan origination offices in five states and its
total assets approximate $42 million. During 1981,
CHMC originated some $33 million in mortgage loans
and an additional $69 million in such loans were
originated by Applicant's banking subsidiary, The
Chase Manhattan Bank, N.A. The total mortgages
originated by these two subsidiaries of Applicant approximate 0.1 percent of the total mortgages originated
by the 300 largest mortgage banking firms in the
United States. Coastal, with total assets of $308 million as of March 31, 1982, operates 45 mortgage
origination offices in 14 states. In 1981, Coastal originated some $1.2 billion in mortgage loans, or approximately 1 percent of the total for the 300 largest
mortgage banks.
CMHC has loan offices in five markets where Coastal also has loan offices 2 and the combined market
4. Applicant has represented that it will not consummate the
subject proposal unless it is approved in its entirety, including the
impermissible real estate development activities that KFSI engages in
and intends to expand. The Board would be prepared to consider a
revised application that did not include activities that are not permissible under the act.
1. Unless otherwise indicated, financial data are as of December
31, 1981.
2. These offices are located in the Baltimore, Orlando, Jacksonville, Tampa, and Miami SMSAs. Although CHMC has offices in New
Jersey, Applicant does not propose to acquire Coastal's New Jersey
mortgage origination offices.
ices that are operationally or functionally so similar to
the proposed services as to equip them particularly
well to provide the proposed service; or that banks
generally provide services that are so integrally related
to the proposed service as to require their provision in
a specialized form.
In this regard, the Board finds that there is no
evidence in the record that banks have engaged in the
proposed real estate development activity. Further,
there is no evidence to support the conclusion that the
proposed activity is operationally or functionally so
similar to activities presently conducted by banks so
as to indicate that bank holding tompanies are particularly well equipped to provide the proposed activity.
Indeed, banks appear to have little or no expertise in
the field of real estate development. There is no
evidence in the record that banks generally provide
services that are so integrally related to real estate
development as to require bank holding companies to
provide this service in a specialized form. Nor has
Applicant provided any other evidence that the proposed activity is closely related to banking.
Based upon the foregoing and the other facts of
record, the Board concludes that Applicant has failed
to meet its burden of demonstrating that there is a
reasonable basis for its opinion that the proposed real
estate development activity is closely related to banking or managing or controlling banks. Accordingly, a
Federal Register notice of opportunity for hearing in
this matter should not be published and the application
is, hereby, dismissed. 4
By order of the Board of Governors, effective
May 3, 1982.
Voting for this action: Governors Wallich, Partee, Teeters,
Rice, and Gramley. Absent and not voting: Chairman
Volcker and Governor Martin.
( S i g n e d ) JAMES MCAFEE,
[SEAL]
Associate
Secretary
of the Board.
Chase Manhattan
Corporation,
New York, New York
Order Approving Acquisition
Companies
of
Nonbanking
384
Federal Reserve Bulletin • June 1982
share of CHMC and Coastal in these markets ranges
from 2.3 percent to 6.7 percent. Thus, some adverse
effects on existing competition would result from
consummation of this proposal.
With regard to potential competition, the Board
notes that during the last two years, Coastal has closed
five offices and reduced its staff by 15 percent. Coastal's parent corporation, Suburban S&L, has decided
to concentrate its resources on its own activities and it
appears that Suburban S&L will not support Coastal's
operations to the extent necessary to ensure Coastal's
continued operation as a vigorous competitor. Accordingly, it does not appear that Coastal is a likely entrant
into the local markets where Applicant currently has
offices. On the other hand, Applicant has increased its
number of mortgage banking offices and apparently
has the potential to enter many of the local markets
where Coastal presently has offices. Coastal has a
market share in excess of 5 percent in four markets,
and a market share in excess of 10 percent in only one
market. Although somewhat concentrated, this latter
market is far removed from C H M C ' s base of operations and it does not appear likely that CHMC would
enter this market. The large number of other potential
entrants into Coastal's local markets also moderates
the negative effects on potential competition associated with the proposal.
Applicant also proposes to acquire the $4.4 billion
mortgage servicing portfolio of Coastal, which ranks
as the fifth largest mortgage servicer in the country as
of June 30, 1981. C H M C services a mortgage portfolio
of $1.5 billion and is the nation's 40th largest mortgage
servicer as of June 30, 1981. Thus, consummation of
this proposal would eliminate an independent competitor in the mortgage servicing industry, and Applicant
would become the third largest mortgage servicing
company in the nation.
In view of the size of the various companies involved in this proposal and based upon all the facts of
record, consummation of the proposal would have
some negative effects with respect to concentration of
resources. Nevertheless, the Board believes that such
negative effects are tempered by the large number of
other competitors that will remain after consummation
of the proposal and by the low barriers to entry in
mortgage banking. When balanced against the public
benefits expected to result from this transaction, the
Board believes the proposal warrants approval.
Affiliation of Coastal with Applicant will provide
Coastal with access to Applicant's financial and managerial resources and ensure the continued availability
of mortgage loans and related insurance services to
Coastal's customers, as well as the continuation of
Coastal's mortgage servicing activities. The continued
operation of Coastal as a vigorous competitor, and
other public interest considerations relating to the
orderly disposition of Coastal, lend significant weight
toward approval of the proposal.
The Board has also considered the capital position
of Applicant, and wishes to reemphasize its earlier
statements that the nation's largest banking organizations should make every effort to improve their capital
positions over time. With respect to Applicant, the
Board has noted the improvements that Applicant has
made in its capital position over the past several
months and expects that efforts for further improvement will continue.
On the basis of these and other facts of record, the
Board concludes that the benefits to the public that
would result from Applicant's acquisition of Coastal
are sufficient to outweigh the negative effects on
competition and concentration of resources that would
result from the proposed acquisition. Furthermore,
there is no evidence in the record to indicate that
consummation of the proposed transaction would result in unfair competition, conflicts of interest, unsound banking practices or any other effects that
would be adverse to the public interest.
Based upon the foregoing and other considerations
reflected in the record, the Board has determined that
the balance of the public interest factors the Board is
required to consider under section 4(c)(8) is favorable.
Accordingly, the application is hereby approved. This
determination is subject to the conditions set forth in
§ 225.4(c) of Regulation Y and to the Board's authority
to require such modification or termination of the
activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance
with the provisions and purposes of the act and the
Board's regulations and orders issued thereunder, or
to prevent evasion thereof. The transaction shall be
made not later than three months after the effective
date of this Order, unless such period is extended for
good cause by the Board or by the Federal Reserve
Bank of New York pursuant to authority hereby
delegated.
By order of the Board of Governors, effective May
27, 1982.
Voting for this action: Chairman Volcker and Governors
Wallich, Partee, Teeters, and Rice. Absent and not voting:
Governors Martin and Gramley. Governor Wallich abstained
from consideration of those portions of the application related to insurance activities.
( S i g n e d ) WILLIAM W . WILES,
[SEAL]
Secretary
of the Board.
Legal Developments
ORDERS APPROVING
AND BANK MERGER
By the Board of
APPLICATIONS
ACT
UNDER
THE BANK HOLDING
COMPANY
385
ACT
Governors
During May 1982, the Board of Governors approved the applications listed below. Copies are available upon
request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3
Board action
(effective
date)
Applicant
Bank(s)
First Freeport Corporation,
Freeport, Texas
InterFirst Corporation,
Dallas, Texas
Mercantile Texas Corporation,
Dallas, Texas
Mercantile Texas Corporation,
Dallas, Texas
Coastal National Bank,
Angleton, Texas
First International Bank—Chelmont, N.A.
El Paso, Texas
Farmers State Bank of Round Rock,
Round Rock, Texas
State National Financial Corporation,
Corsicana, Texas
May 20, 1982
April 30, 1982
May 7, 1982
April 29, 1982
Section 4
Applicant
Nonbanking
company
(or activity)
Effective
J-iHVV LI V V
Barnett Banks of Florida, Inc.,
Jacksonville, Florida
First State Mortgage Company,
Altamonte Springs, Florida
May 6, 1982
i
t*
a
By Federal Reserve
Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are
available upon request to the Reserve Banks.
Section 3
Applicant
Amarillo National Bancorp,
Amarillo, Texas
Americo Bancshares, Inc.,
Wolfforth, Texas
Andrew Johnson Bancshares, Inc.,
Greenville, Tennessee
Associated Banc-Corp.,
Green Bay, Wisconsin
Bank Sales Department, Inc.,
Terril, Iowa
Bank(s)
Amarillo National Bank,
Amarillo, Texas
American Bank of Commerce at
Wolfforth, Texas,
Wolfforth, Texas
Andrew Johnson Bank,
Greenville, Tennessee
Bank of Commerce,
Milwaukee, Wisconsin
The State Bank,
Spirit Lake, Iowa
Reserve
Bank
Effective
date
Dallas
May 18, 1982
Dallas
May 18, 1982
Atlanta
May 5, 1982
Chicago
May 18, 1982
Chicago
May 14, 1982
386
Federal Reserve Bulletin • June 1982
Section 3—Continued
Reserve
Bank
Effective
date
Applicant
Bank(s)
Bancorp of Northwestern Indiana,
Goodland, Indiana
Basin Bancorp Inc.,
Ducktown, Tennessee
Beverly Bankshares, Inc.,
Beverly, Kansas
Boatmen's Bancshares, Inc.,
St. Louis, Missouri
Bonneville Bancorp,
Provo, Utah
Borger First Corporation,
Borger, Texas
BSD Bancorp, Inc.,
San Diego, California
Caldwell Bancshares, Inc.,
Caldwell, Texas
Chisago Bancorporation, Inc.,
Minneapolis, Minnesota
Citizens Holding Company,
Philadelphia, Mississippi
Citizens Union Bancorp of Shelbyville, Inc.,
Shelbyville, Kentucky
CNB Financial Corporation,
Kansas City, Kansas
Coleman Bancshares, Inc.
Coleman, Texas
Columbia Bancshares, Inc.,
West Columbia, Texas
Commercial Bancshares, Inc.,
Jersey City, New Jersey
Goodland State Bank,
Goodland, Indiana
Ducktown Banking Company,
Ducktown, Tennessee
The Beverly State Bank,
Beverly, Kansas
Farmers and Merchants Bank,
Cape Girardeau, Missouri
The Bonneville Bank,
Provo, Utah
First National Bank of Borger,
Borger, Texas
Coast Bank,
Long Beach, California
First State Bank,
Chilton, Texas
Chisago State Bank,
Chisago City, Minnesota
The Citizens Bank of Philadelphia,
Philadelphia, Mississippi
Citizens Union Bank of Shelbyville,
Shelbyville, Kentucky
Chicago
May 21, 1982
Atlanta
May 7, 1982
Kansas City
May 7, 1982
St. Louis
April 28, 1982
San Francisco
May 9, 1982
Dallas
May 24, 1982
San Francisco
April 26, 1982
Dallas
May 4, 1982
Minneapolis
May 21, 1982
Atlanta
May 14, 1982
St. Louis
April 29, 1982
Commercial National Bank,
Kansas City, Kansas
Coleman Bank,
Coleman, Texas
First Capitol Bank,
West Columbia, Texas
Commercial Trust Company of
New Jersey,
Jersey City, New Jersey
The Delaware County Bank,
Jay, Oklahoma
Edens Plaza State Bank,
Wilmette, Illinois
Farmers Savings Bank,
North English, Iowa
Farmers State Bank of Evansville,
Evansville, Minnesota
Farmers and Merchants State Bank
of New Ulm,
New Ulm, Minnesota
The Anniston National Bank,
Anniston, Alabama
First Eastern National Bank,
Kingsport, Tennessee
The National Bank of Harvey,
Harvey, North Dakota
Kansas City
May 3, 1982
Dallas
April 30, 1982
Dallas
April 30, 1982
New York
May 19, 1982
Kansas City
May 11, 1982
Chicago
May 7, 1982
Chicago
May 4, 1982
Minneapolis
May 14, 1982
Minneapolis
May 18, 1982
Atlanta
May 13, 1982
Atlanta
May 18, 1982
Minneapolis
May 5, 1982
Delaware Bancshares, Inc.,
Jay, Oklahoma
Edens Bancshares, Inc.,
Wilmette, Illinois
English Valley Bancshares, Inc.,
North English, Iowa
Evansville Bancshares, Inc.,
Evansville, Minnesota
Farmers and Merchants Financial
Services, Inc.,
New Ulm, Minnesota
First Alabama Bancshares, Inc.,
Montgomery, Alabama
First American Corporation,
Nashville, Tennessee
First Bank Holding Company, Inc.,
Harvey, North Dakota
Legal Developments
387
Section 3—Continued
Applicant
First Midwest Bancorp., Inc.,
St. Joseph, Missouri
The First National Bancorporation,
Inc.,
Denver, Colorado
First Newton Corporation,
Newton, Mississippi
First Southeast Banking Corp.,
Darien, Wisconsin
Flagship Banks, Inc.,
Miami, Florida
Flint Bancshares, Inc.,
Cordele, Georgia
Haviland Bancshares, Inc.,
Haviland, Kansas
H C Financial Corp.,
LaBelle, Florida
JDOB, Inc.,
Naples, Florida
Johnston County Bancshares, Inc.,
Tishomingo, Oklahoma
Lakeside Bancshares, Inc.,
Lake Charles, Louisiana
The Levelland Co.,
Levelland, Texas
Marion Bancshares, Inc.,
Lexington, Kentucky
Lisle Bancorporation,
Lisle, Illinois
Madison Bancorp., Inc.,
Madison, Kansas
Marine Bancorp, Inc.,
Springfield, Illinois
Merchants Bancorporation,
Topeka, Kansas
Metropolitan Bancshares, Inc.,
Munford, Tennessee
Midlands Financial Services, Inc.,
Omaha, Nebraska
Murdock Bancshares, Inc.,
Murdock, Kansas
Napoleon Bancorporation, Inc.,
Napoleon, North Dakota
Bank(s)
Reserve
Bank
Effective
date
The Merchants and Farmers Bank
of Salisbury,
Salisbury, Missouri
Foothills National Bank,
Fort Collins, Colorado
Kansas City
April 28, 1982
Kansas City
April 30, 1982
First National Bank of Newton,
Newton, Mississippi
Racine County National Bank,
Franksville, Wisconsin
Citizens National Bank of Naples,
Naples, Florida
Cordele Banking Company,
Cordele, Georgia
The Haviland State Bank,
Haviland, Kansas
Hendry County Bank,
LaBelle, Florida
First National Bank of Askov,
Askov, Minnesota
Bank of Johnston County,
Tishomingo, Oklahoma
Lakeside National Bank of
Lake Charles,
Lake Charles, Louisiana
Bank of the West,
Lubbock, Texas
South Plains Bancshares, Inc.,
Idalou, Texas
Marion National Bank,
Lebanon, Kentucky
Bank of Lisle,
Lisle, Illinois
The Madison Bank,
Madison, Kansas
American National Bank of
Champaign,
Champaign, Illinois
The Merchants National Bank
of Topeka,
Topeka, Kansas
Munford Union Bank,
Munford, Tennessee
Nebraska State Bank of Omaha,
Omaha, Nebraska
Murdock State Bank,
Murdock, Kansas
Stock Growers Bank,
Napoleon, North Dakota
Atlanta
May 7, 1982
Chicago
May 5, 1982
Atlanta
May 7, 1982
Atlanta
May 13, 1982
Kansas City
May 17, 1982
Atlanta
May 25, 1982
Minneapolis
May 10, 1982
Dallas
April 30, 1982
Atlanta
April 27, 1982
Dallas
May 20, 1982
St. Louis
April 30, 1982
Chicago
May 6, 1982
Kansas City
May 4, 1982
Chicago
May 10, 1982
Kansas City
April 30, 1982
St. Louis
May 7, 1982
Kansas City
May 10, 1982
Kansas City
April 26, 1982
Minneapolis
May 19, 1982
388
Federal Reserve Bulletin • June 1982
Section 3—Continued
Applicant
Northern Cities Bancorporation,
Inc.,
Forest Lake, Minnesota
The Northern Corporation,
Wisner, Nebraska
North Shore Capital Corporation,
Wilmette, Illinois
Owatonna Bancshares, Inc.,
Owatonna, Minnesota
Patriot Bancorporation,
Boston, Massachusetts
Peoples Banking Co. of Cecil Co.,
Elkton, Maryland
Philadelphia Capital Corporation,
Philadelphia, Mississippi
Pinellas Bancshares Corporation,
St. Petersburg, Florida
Plum Grove Bancorporation, Inc.,
Rolling Meadows, Illinois
PT&S Bancorp,
Indianola, Iowa
Ranger Bancshares, Inc.,
Ranger, Texas
Ruidoso Bank Corporation,
Ruidoso, New Mexico
Southern Bancshares, Inc.,
Bremond, Texas
Springfield State Bancorporation,
Inc.,
Springfield, Minnesota
State Holding Company,
Thermopolis, Wyoming
Steel City Bancorporation, Inc.,
Chicago, Illinois
Sterling Bankshares, Inc.,
Tecumseh, Nebraska
The Summit Bancorporation,
Summit, New Jersey
Table Rock Bancshares, Inc.,
Shell Knob, Missouri
T-C Holdings, Inc.,
Chicago, Illinois
Tecumseh Bankshares, Inc.,
Tecumseh, Nebraska
Union Bank Corporation,
Wichita, Kansas
_ . . ,
Bank(s)
Reserve
^
Effective
^
Tri-County National Bank,
Forest Lake, Minnesota
Minneapolis
May 5, 1982
North Side Bank,
Omaha, Nebraska
The Morton Grove Bank,
Morton Grove, Illinois
Owatonna State Bank,
Owatonna, Minnesota
Commonwealth National Corporation,
Boston, Massachusetts
The Peoples Bank of Elkton,
Elkton, Maryland
Bank of Philadelphia,
Philadelphia, Mississippi
United Bank of Pinellas,
St. Petersburg, Florida
Plum Grove Bank,
Rolling Meadows, Illinois
Peoples Trust and Savings Bank,
Indianola, Iowa
First State Bank,
Ranger, Texas
Ruidoso State Bank,
Ruidoso, New Mexico
First State Bank,
Bremond, Texas
Lott State Bank,
Lott, Texas
State Bank of Springfield,
Springfield, Minnesota
Kansas City
May 10, 1982
Chicago
May 21, 1982
Minnesota
May 11, 1982
Boston
May 3, 1982
Richmond
April 27, 1982
Atlanta
May 14, 1982
Atlanta
May 3, 1982
Chicago
April 26, 1982
Chicago
May 14, 1982
Dallas
May 12, 1982
Dallas
May 25, 1982
Dallas
May 11, 1982
Minneapolis
May 3, 1982
Kansas City
May 19, 1982
Chicago
May 7, 1982
Kansas City
May 12, 1982
New York
May 5, 1982
St. Louis
May 12, 1982
Chicago
April 26, 1982
Kansas City
May 12, 1982
Kansas City
April 21, 1982
First State Bank,
Thermopolis, Wyoming
Thornridge State Bank,
South Holland, Illinois
Bank Management, Inc.,
Wahoo, Nebraska
The Town and Country Bank,
Flemington, New Jersey
Community Bank of Shell Knob,
Shell Knob, Missouri
Bank of Yorktown,
Lombard, Illinois
Bank Management, Inc.,
Wahoo, Nebraska
Union National Bank,
Wichita, Kansas
Legal Developments
389
Section 3—Continued
. . .
Applicant
„ . , .
Bank(s)
Bank of Commerce,
Morristown, Tennessee
The Valley Bank,
Rosedale, Mississippi
Vesta State Bank,
Vesta, Minnesota
New Braunfels National Bank,
New Braunfels, Texas
Warrior Savings Bank,
Warrior, Alabama
Bank of Yazoo City,
Yazoo City, Mississippi
First National Bank of Zapata,
Zapata, Texas
United Hamblen, Inc.,
Morristown, Tennessee
Valley Capital Corp.,
Rosedale, Mississippi
Vesta Bancorporation, Inc.,
Vesta, Minnesota
Victoria Bankshares, Inc.,
Victoria, Texas
Warrior Capital Corporation,
Warrior, Alabama
Yazoo Capital Corporation,
Yazoo City, Mississippi
Zapata Bancshares, Inc.,
Zapata, Texas
Reserve
^
Effective
date
Atlanta
May 5, 1982
St. Louis
May 21, 1982
Minneapolis
May 18, 1982
Dallas
May 18, 1982
Atlanta
May 13, 1982
Atlanta
April 30, 1982
Dallas
May 26, 1982
Section 4
Nonbanking
company
(or activity)
Applicant
Landmark Banking Corporation of Florida,
Ft. Lauderdale, Florida
Mid-Nebraska Bancshares, Inc.,
Ord, Nebraska
Southeast Banking Corporation,
Miami, Florida
Tennessee National Bancshares, Inc.,
Maryville, Tennessee
Capital America, Inc.,
Ft. Lauderdale, Florida
Capital Associates, Inc.,
Pompano Beach, Florida
Ord Insurance Agency, Inc.,
Ord, Nebraska
Churchill Mortgage Company,
Miami, Florida
Professional Leasing, Inc.,
Maryville, Tennessee
Reserve
Bank
Effective
date
Atlanta
April 30, 1982
Kansas City
April 21, 1982
Atlanta
May 3, 1982
Atlanta
April 26, 1982
Sections 3 and 4
Applicant
Bushnell Bancorp,
Bushnell, Nebraska
Bank(s)
Kimball County Bank,
Bushnell, Nebraska
Nonbanking
company
(or activity)
Bushnell Insurance
Agency,
Bushnell, Nebraska
Reserve
Bank
Effective
date
Kansas City
May 12, 1982
390
Federal Reserve Bulletin • June 1982
ORDERS APPROVED
UNDER BANK MERGER
By Federal Reserve
Banks
First Virginia Bank-Highlands,
Covington, Virginia
First Virginia Bank-Shenandoah
Valley,
Woodstock, Virginia
Guardian State Bank,
Salt Lake City, Utah
CASES INVOLVING
The Bath County National Bank,
Hot Springs, Virginia
First Virginia Bank of Frederick
County,
Stephens City, Virginia
Empire State Bank,
Salt Lake City, Utah
THE BOARD
OF
Effective
date
Richmond
May 20, 1982
Richmond
May 4, 1982
San Francisco
March 30, 1982
GOVERNORS*
*This list of pending cases does not include suits
against the Federal Reserve Banks in which the Board
of Governors is not named a party.
Florida National Banks of Florida, Inc. v. Board of
Governors, filed April 1982, U.S.C.A. for the District of Columbia.
John A. Gabriel v. Board of Governors, filed April
1982, U.S.C.A. for the Ninth Circuit.
First Bancorporation
v. Board of Governors, filed
April 1982, U.S.C.A. for the Tenth Circuit.
Charles G. Vick v. Paul A. Volcker, et al., filed March
1982, U.S.D.C. for the District of Columbia.
Jolene Gustafson v. Board of Governors, filed March
1982, U.S.C.A. for the Fifth Circuit.
C. A. Cavendes, Sociedad Financiera v. Board of
Governors, filed January 1982, U.S.C.A. for the
District of Columbia.
First Lakefield BanCorporation v. Board of Governors, et al., filed January 1982, U.S.D.C. for the
District of Minnesota.
Christian Educational Association, Inc. v. Federal
Reserve System, filed January 1982, U.S.D.C. for
the Middle District of Florida.
Option Advisory Service, Inc. v. Board of Governors,
filed December 1981, U.S.C.A. for the Second
Circuit.
Edwin F. Gordon v. Board of Governors, et al., filed
October 1981, U.S.C.A. for the Eleventh Circuit
(two consolidated cases).
Wendall Hall v. Board of Governors, et al., filed
September 1981, U.S.D.C. for the Northern District
of Georgia.
Allen Wolf son v. Board of Governors, filed September
1981, U.S.D.C. for the Middle District of Florida.
Reserve
Bank
Bank(s)
Applicant
PENDING
ACT
Option Advisory Service, Inc. v. Board of Governors,
filed September 1981, U.S.C.A. for the Second
Circuit (two cases).
Bank Stationers Association, Inc., et al. v. Board of
Governors, filed July 1981, U.S.D.C. for the Northern District of Georgia.
Public Interest Bounty Hunters v. Board of Governors, et al., filed June 1981, U.S.D.C. for the
Northern District of Georgia.
Edwin F. Gordon v. John Heimann, et al., filed May
1981, U.S.C.A. for the Fifth Circuit.
Wilshire Oil Company of Texas v. Board of Governors, et al, filed April 1981, U.S.C.A. for the Third
Circuit.
First Bank & Trust Company v. Board of Governors,
filed February 1981, U.S.D.C. for the Eastern District of Kentucky.
9 to 5 Organization for Women Office Workers v.
Board
of Governors,
filed
December 1980,
U.S.D.C. for the District of Massachusetts.
Securities Industry Association v. Board of Governors, et al., filed October 1980, U.S.D.C. for the
District of Columbia.
Securities Industry Association v. Board of Governors, et al, filed October 1980, U.S.C.A. for the
District of Columbia.
A. G. Becker, Inc. v. Board of Governors, et al., filed
October 1980, U.S.D.C. for the District of Columbia.
A. G. Becker, Inc. v. Board of Governors, et al., filed
October 1980, U.S.C.A. for the District of Columbia.
A. G. Becker, Inc. v. Board of Governors, et al., filed
August 1980, U.S.D.C. for the District of Columbia.
Berkovitz, et al. v. Government of Iran, et al., filed
June 1980, U.S.D.C. for the Northern District of
California.
AI
Financial and Business Statistics
CONTENTS
Domestic
A3
A4
A5
A6
WEEKLY REPORTING
Financial
Statistics
Monetary aggregates and interest rates
Reserves of depository institutions, reserve,
bank credit
Reserves and borrowings of depository
institutions
Federal funds and repurchase agreements of
large member banks
MARKETS
INSTRUMENTS
A7
A8
A9
Federal Reserve Bank interest rates
Depository institutions reserve requirements
Maximum interest rates payable on time and
savings deposits at federally insured institutions
A10 Federal Reserve open market transactions
FEDERAL RESERVE
BANKS
A l l Condition and Federal Reserve note statements
A12 Maturity distribution of loan and security
holdings
MONETARY
BANKS
Assets and liabilities
A18
All reporting banks
A19
Banks with assets of $1 billion or more
A20
Banks in New York City
A21
Balance sheet memoranda
A22
Branches and agencies of foreign banks
A23 Commercial and industrial loans
A24 Gross demand deposits of individuals,
partnerships, and corporations
FINANCIAL
POLICY
COMMERCIAL
AND CREDIT
AGGREGATES
A12 Bank debits and deposit turnover
A13 Money stock measures and components
A14 Aggregate reserves of depository institutions
and monetary base
A15 Loans and securities of all commercial banks
COMMERCIAL
BANKS
A16 Major nondeposit funds
A17 Assets and liabilities, last Wednesday-of-month
series
A25 Commercial paper and bankers dollar
acceptances outstanding
A26 Prime rate charged by banks on short-term
business loans
A26 Terms of lending at commercial banks
All Interest rates in money and capital markets
A28 Stock market—Selected statistics
A29 Selected financial institutions—Selected assets
and liabilities
FEDERAL
A30
A31
A32
A32
FINANCE
Federal fiscal and financing operations
U.S. budget receipts and outlay
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types and
ownership
A33 U.S. government marketable securities—
Ownership, by maturity
A34 U.S. government securities dealers—
Transactions, positions, and financing
A35 Federal and federally sponsored credit
agencies—Debt outstanding
2
Federal Reserve Bulletin • June 1982
International
SECURITIES MARKETS AND
CORPORATE FINANCE
A36 New security issues—State and local
governments and corporations
A37 Open-end investment companies—Net sales and
asset position
A37 Corporate profits and their distribution
A38 Nonfinancial corporations—Assets and
liabilities
A38 Total nonfarm business expenditures on new
plant and equipment
A39 Domestic finance companies—Assets and
liabilities; business credit
REAL ESTATE
A40 Mortgage markets
A41 Mortgage debt outstanding
CONSUMER INSTALLMENT CREDIT
A42 Total outstanding and net change
A43 Extension and liquidations
A44 Funds raised in U.S. credit markets
A45 Direct and indirect sources of funds to credit
markets
Nonfinancial
Statistics
A46 Nonfinancial business activity—Selected
measures
A46 Output, capacity, and capacity utilization
A47 Labor force, employment, and unemployment
A48 Industrial production—Indexes and gross value
A50 Housing and construction
A51 Consumer and producer prices
A52 Gross national product and income
A53 Personal income and saving
A54
A55
A55
A55
U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A56 Foreign branches of U.S. banks—Balance sheet
data
A58 Selected U.S. liabilities to foreign official
institutions
REPORTED BY BANKS IN THE UNITED STATES
A58
A59
A61
A62
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A62 Banks' own claims on unaffiliated foreigners
A63 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED BY NONBANKING BUSINESS
ENTERPRISES IN THE UNITED STATES
A64 Liabilities to unaffiliated foreigners
A65 Claims on unaffiliated foreigners
FLOW OF FUNDS
Domestic
Statistics
SECURITIES HOLDINGS AND TRANSACTIONS
A66 Foreign transactions in securities
A67 Marketable U.S. Treasury bonds and notes—
Foreign holdings and transactions
INTEREST AND EXCHANGE RATES
A67 Discount rates of foreign central banks
A68 Foreign short-term interest rates
A68 Foreign exchange rates
A69 Guide to Tabular
Statistical Releases,
Tables
Presentation,
and
Special
Domestic Financial Statistics
1.10
A3
MONETARY AGGREGATES A N D INTEREST RATES
1981
1982
1981
Q1
Dec.
1982
Item
Q2
Q4
Q3
Jan.
Feb.
Mar.
Apr.
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent) 1
1
2
3
4
Reserves of depository institutions
Total
Required
Nonborrowed
Monetary base 2
5
6
7
8
Concepts of money and liquid assets3
Ml
M2
M3
L
Time and savings deposits
Commercial banks
Total
9
10 Savings4
11 Small-denomination time 5
12 Large-denomination time 6
13 Thrift institutions 7
4.2
5.0
-2.4
5.8
4.0
3.1
7.9
4.3
3.2
3.5
10.5
3.9
8.3
7.9
.4
8.0
11.3
12.1
12.3
11.3
22.2
19.4
-4.0
11.6
-10.2
-6.9
-18.8
3.4
4.7
3.1
12.1
4.1
2.7
5.3
2.5
9.2
9.2
12.0
12.2
10.6
.3
8.3
11.2
11.9
5.7
8.8
9.2
10.6
10.4
9.7
8.6
n.a.
12.4
8.4
7.3
5.7
21.0
12.2
8.9
7.9
-3.5
4.3
5.8
n.a.
2.4
11.2
11.3
n.a.
11.0
9.7
11.4
n.a.
11.9
-8.9
16.2
19.9
3.2
18.4
-22.7
24.3
36.0
2.6
8.3
-11.9
20.8
5.4
2.7
7.5
8.7
9.7
4.6
3.1
1.6
4.6
-.3
2.2
1.3
5.0
14.5
4.4
1.1
1.1
Ill
.8
16.1
10.7
5.2
19.9
13.6
25.1
17.2
7.6
15.6
-1.5
28.8
9.0
5.3
8.5
8.7
3.6
2.5
14 Total loans and securities at commercial banks 8
1981
Q2
-io.r
1982
Q3
Q4
Q1
10.7r
3.5'
8.0 r
8.7
1982
Jan.
Feb.
Mar.
Apr.
May
Interest rates (levels, percent per annum)
15
16
17
18
Short-term rates
Federal funds 9
Discount window borrowing 10
Treasury bills (3-month market vield)
Commercial paper ( 3 - m o n t h ) u r 2 . . . .
17.78
13.62
14.91
16.15
17.58
14.00
15.05
16.78
13.59
13.04
11.75
13.04
14.23
12.00
19
20
21
22
Long-term rates
Bonds
U.S. government 13
State and local government 14
Aaa utility (new issue) 15
Conventional mortgages 16
13.49
10.69
15.41
16.15
14.51
14.14
12.54
15.67
17.33
1. Unless otherwise noted, rates of change are calculated from average amounts
outstanding in preceding month or quarter.
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 depository institutions plus currency outside the U.S. Treasury, Federal Reserve Banks,
the vaults of depository institutions, and surplus vault cash at depository institutions.
3. Ml: Averages of daily figures for (1) currency outside the Treasury, Federal
Reserve Banks, and the vaults of commercial banks; (2) traveler's checks of nonbank issuers; (3) demand deposits at all commercial banks other than those due
to domestic banks, the U.S. government, and foreign banks and official institutions
less cash items in the process of collection and Federal Reserve float; and (4)
negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at banks and thrift institutions, credit union share draft (CUSD) accounts,
and demand deposits at mutual savings banks.
M2: Ml plus savings and small-denomination time deposits at all depository
institutions, overnight repurchase agreements at commercial banks, overnight Eurodollars held by U.S. residents other than banks at Caribbean branches of member
banks, and balances of money market mutual funds (general purpose and broker/
dealer).
M3: M2 plus large-denomination time deposits at all depository institutions and
term RPs at commercial banks and savings and loan associations and balances of
institution-only money market mutual funds.
12.11
16.82
17.50
13.81
13.22
12.00
12.28
13.09
14.78
12.00
13.48
14.53
14.68
12.00
12.68
13.80
14.94
12.00
12.70
14.06
14.27
13.02
15.71
17.10
14.57
13.28
15.68
17.30
14.48
12.97
15.93
17.20
13.75
13.57
12.59
15.83
16.65
12.81
12.82
15.43
16.80
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 and
thrifts and CUSD accounts at credit unions.
5. Small-denomination time deposits—including retail RPs—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. December 1981 and 1981
Q4 rates reflect shifts of foreign loans and securities from U.S. banking offices to
international banking facilities.
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 compilations.
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
1.11
DomesticNonfinancialStatistics • June 1982
RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1982
1982
Factors
Mar.
Apr.
May
Apr. 14
146,815
150,361
151,154
148,694
152,150
150,809
156,441
150,703
150,803
149,951
124,600
124,303
297
9,035
9,017
18
47
1,611
2,420
9,102
127,526
126,542
984
9,123
9,010
113
150
1,581
2,629
9,352
129,686
128,964
722
9,123
9,008
115
164
1,105
1,988
9,088
125,592
125,592
0
9,011
9,011
0
0
1,335
3,535
9,222
129,436
128,109
1.327
9,117
9,008
109
209
1,653
2,393
9,342
128,370
128,055
315
9,058
9,008
50
27
1,823
1,996
9,534
132,639
129,080
3,559
9,654
9,008
646
498
1,499
2,122
10,029
128,663
128,663
0
9,008
9,008
0
0
1,117
2,134
9,780
129,727
128,934
793
9,097
9,008
89
233
963
1,777
9,006
129,340
128,784
556
9,084
9,008
76
231
1,054
1,995
8,247
11,150
3,568
13,723
11,150
3,660
13,744
11,149
3,818
13,758
11,150
3,568
13,737
11,150
3,639
13,750
11,150
3,818
13,752
11,149
3,818
13,756
11,149
3,818
13,756
11,149
3,818
13,756
11,149
3,818
13,757
140,951
474
143,024
490
144,683
489
143,702
491
143,477
490
142,831
490
143,427
490
144,656
492
144,8%
488
144,737
486
3,312
280
560
4,695
289
443
4,292
332
509
3,626
307
435
4,258
247
380
4,788
255
487
9,773
583
523
4,694
317
476
3,122
259
500
3,023
260
501
Apr. 21
Apr. 28
May 5
May 12
May 19P
May 26 p
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
2
3
4
5
6
7
8
9
10
11
U.S. government securities1
Bought outright
Held under repurchase agreements
Federal agency securities
Bought outright
Held under repurchase agreements
Acceptances
Loans
Float
Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account...
14 Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserves, with Federal
Reserve Banks
17 Treasury
18 Foreign
19 Other
20 Required clearing balances
21 Other Federal Reserve liabilities and
capital
22 Reserve accounts2
156
172
184
172
174
177
177
183
186
189
5,121
24,401
5,237
24,565
5,364
24,028
5,073
23,343
5,261
26,402
5,295
25,205
5,520
24,671
5,257
23,351
5,203
24,872
5,319
24,161
May 19?
May 26 P
End-of-month figures
Wednesday figures
1982
1982
Mar.
Apr.
May
Apr. 14
Apr. 21
Apr. 28
May 5
May 12
SUPPLYING RESERVE FUNDS
23 Reserve Bank credit outstanding
24
25
26
27
28
29
30
31
32
33
U.S. government securities1
Bought outright
Held under repurchase agreements
Federal agency securities
Bought outright
Held under repurchase agreements
Acceptances
Loans
Float
Other Federal Reserve assets
34 Gold stock
35 Special drawing rights certificate account...
36 Treasury currency outstanding
148,729
158,729
149,884
149,477
155,488
158,701
152,208
152,966
153,320
149,245
125,589
123,992
1,597
9,095
9,013
82
488
2,646
1,882
9,029
134,257
128,988
5,269
10,004
9,008
996
768
1,799
1,507
10,394
129,407
129,407
0
9,008
9,008
0
0
1,058
1,776
8,635
123,831
123,831
4,444
2,890
9,304
130,615
127,949
2,666
9,228
9,008
220
128
3,043
2,955
9,519
130,371
128,166
2,205
9,356
9,008
348
192
6,180
2,870
9,732
129,232
129,232
0
0
9,008
9,008
0
1,251
2,973
9,744
129,845
129,845
0
0
9,008
9,008
0
1,757
2,702
9,654
131,291
128,358
2,933
9,425
9,008
417
944
1,058
2,008
8,594
128,765
128,765
0
9,008
9,008
0
0
1,367
1,648
8,457
11,150
3,568
13,734
11,149
3,818
13,756
11,149
3,818
13,767
11,150
3,568
13,745
11,150
3,818
13,751
11,150
3,818
13,756
11,149
3,818
13,756
11,149
3,818
13,756
11,149
3,818
13,756
11,149
3,818
13,761
141,673
484
143,044
491
145,523
477
144,220
491
143,346
489
143,361
491
144,259
487
145,384
490
145,037
487
145,504
483
2,866
421
425
167
12,239
966
450
176
2,540
308
523
189
2,909
239
373
171
7,031
224
486
174
10,869
264
484
175
4,354
283
510
176
3,051
227
541
181
3,697
241
507
186
2,969
272
545
189
4,955
26,190
5,561
24,526
5,784
23,274
4,946
24,591
5,211
27,246
5,282
26,498
5,146
25,716
5,042
26,773
5,096
26,792
5,118
22,893
9,008
9,008
ABSORBING RESERVE FUNDS
37 Currency in circulation
38 Treasury cash holdings
Deposits, other than reserves, with Federal
Reserve Banks
39 Treasury
40 Foreign
41 Other
42 Required clearing balances
43 Other Federal Reserve liabilities and
capital
44 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. Excludes required clearing balances,
NOTE. For amounts of currency and coin held as reserves, see table 1.12.
Depository Institutions
1.12
RESERVES A N D BORROWINGS
A5
Depository Institutions
Millions of dollars
Monthly averages of daily figures
Reserve classification
Dec.
1 Reserve balances with Reserve B a n k s 1 . . . .
2 Total vault cash (estimated)
3 Vault cash at institutions with required
reserve balances2
4 Vault cash equal to required reserves at
other institutions
5 Surplus vault cash at other institutions3 .
6 Reserve balances + total vault cash4
7 Reserve balances + total vault cash4,5used
to satisfy reserve requirements
8 Required reserves (estimated)
Excess
reserve balances at Reserve Banks4-6
9
10 Total borrowings at Reserve Banks
11
Seasonal borrowings at Reserve Banks
12
Extended credit at Reserve Banks
1982
1981
1980
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.'
May?
26,664
18,149
25,499
18,925
25,690
18,810
25,892
18,844
26,163
19,538
26,721
20,284
25,963
19,251
24,254
18,749
24,565
18,577
24,028
19,032
12,602
13,041
12,924
12,986
13,577
14,199
13,082
12,663
12,709
13,038
704
4,843
44,940
2,053
3,831
44,424
2,097
3,789
44,500
2,073
3,785
44,736
2,178
3,783
45,701
2,290
3,795
47,005
2,235
3,934
45,214
2,313
3,773
43,003
2,284
3,584
43,142
2,312
3,682
43,063
40,097
40,067
30
1,617
116
n.a.
40,593
40,177
416
1,473
222
301
40,711
40,433
278
1,149
152
442
40,951
40,604
347
695
79
178
41,918
41,606
312
642
53
149
43,210
42,785
425
1,526
75
197
41,280
40,981
299
1,713
132
232
39,230
38,873
357
1,611
174
309
39,558
39,284
274
1,581
167
245
39,381
39,199
182
1,105
237
177
May 19P
May 26 p
Weekly averages of daily figures for week ending:
1982
Mar. 24
1
13 Reserve balances with Reserve B a n k s . . . .
14 Total vault cash (estimated)
15 Vault cash at institutions with required
reserve balances2
16 Vault cash equal to required reserves at
other institutions
17 Surplus vault cash at other institutions3 .
18 Reserve balances + total vault cash4
19 Reserve balances + total vault cash used
to satisfy reserve requirements 4 ' 5
20 Required reserves (estimated)
21 Excess reserve balances at Reserve Banks4'6
22 Total borrowings at Reserve Banks
23
Seasonal borrowings at Reserve Banks
24
Extended credit at Reserve B a n k s . . . .
Mar. 31
Apr. 7
Apr. 21r
Apr. 28'
May 5
May 12
24,905
17,621
24,376
18,574
23,280
18,858
23,343
19,208
26,402
17,243
25,205
18,702
24,671
19,611
23,351
19,639
24,872
18,557
24,161
18,468
12,141
12,653
12,800
12,950
11,924
12,939
13,485
13,324
12,620
12,740
2,084
3,396
42,526
2,261
3,660
42,950
2,355
3,703
42,138
2,404
3,854
42,551
2,092
3,227
43,645
2,252
3,511
43,907
2,403
3,723
44,282
2,483
3,832
42,990
2,254
3,683
43,432
2,176
3,552
42,632
39,130
38,861
269
1,652
173
311
39,290
38,824
466
1,656
200
324
38,435
38,163
272
1,480
166
279
38,697
38,379
318
1,335
154
234
40,418
40,247
171
1,653
159
248
40,396
40,111
285
1,823
177
227
40,559
40,115
444
1,499
205
214
39,158
38,894
264
1,117
218
192
39,749
39,289
460
963
232
179
39,080
38,942
138
1,054
258
162
1. As of Aug. 13, 1981 excludes required clearing balances of all depository
institutions.
2. Before Nov. 13, 1980, the figures shown reflect only the vault cash held by
member banks.
3. Total vault cash at institutions without required reserve balances less vault
cash equal to their required reserves.
4. Adjusted to include waivers of penalties for reserve deficiencies in accordance
with Board policy, effective Nov. 19, 1975, of permitting transitional relief on a
graduated basis over a 24-month period when a nonmember bank merged into an
Apr. 14
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 which exclude required clearing
balances 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 which exclude required clearing
balances plus vault cash used to satisfy reserve requirements less required reserves.
(This measure of excess reserves is comparable to the old excess reserve concept
published historically.)
A6
1.13
DomesticNonfinancialStatistics • June 1982
FEDERAL FUNDS A N D REPURCHASE AGREEMENTS
Large Member Banks 1
Averages of daily figures, in millions of dollars
1982, week ending Wednesday
By maturity and source
Mar. 31
One day and continuing contract
1 Commercial banks in United States
2 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies .
3 Nonbank securities dealers
4 All other
All other maturities
5 Commercial banks in United States
6 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies .
7 Nonbank securities dealers
8 All other
MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract
9 Commercial banks in United States
10 Nonbank securities dealers
1. Banks with assets of $1 billion or more as of Dec. 31, 1977.
Apr. 7
Apr. 14
Apr. 21
Apr. 28
May 5
May 12
May 19
May 26
52,588
61,417r
62,005r
57,732r
54,102''
56,418
58,947
55,246
54,216
19,910
3,939
23,246
18,378
3,979
22,926r
18,862
3,547
19,784r
18,822
3,604
21,041r
18,437 r
3,452
21,952r
19,663
3,900
22,152
20,582
3,982
22,111
22,496
3,856
22,932
23,688
3,684
21,524
4,167
4,104
5,045
4,658
4,582
4,789
4,593
4,346
4,286
8,141
3,783
9,405
8,394
3,639
9,552
8,620
3,906
12,984
8,712
3,674
11,114
8,903'
4,078
9,432
9,569
4,433
8,798
9,308
4,195
9,132
9,372
4,002
9,243
9,640
3,686
10,170
17,094
4,470
20,082
4,414
18,539
4,307
19,423
4,186
18,475r
4,632
20,204
4,312
19,332
3,709
18,424
3,973
18,866
4,169
Policy Instruments
1.14
A7
FEDERAL RESERVE BANK INTEREST RATES
P e r c e n t per a n n u m
Current and previous levels
Extended credit 1
Short-term adjustment credit
and seasonal credit
Federal Reserve
Bank
First 60 days
of borrowing
Next 90 days
of borrowing
After 150 days
Effective date
for current rates
Rate on
5/31/82
Effective
date
Previous
rate
Rate on
5/31/82
Previous
rate
Rate on
5/31/82
Previous
rate
Rate on
5/31/82
Previous
rate
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
12
12
12
12
12
12
12/4/81
12/4/81
12/4/81
12/4/81
12/4/81
12/4/81
13
13
13
13
13
13
12
12
12
12
12
12
13
13
13
13
13
13
13
13
13
13
13
13
14
14
14
14
14
14
14
14
14
14
14
14
15
15
15
15
15
15
12/4/81
12/4/81
12/4/81
12/4/81
12/4/81
12/4/81
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
12
12
12
12
12
12
12/4/81
12/4/81
12/4/81
12/4/81
12/4/81
12/4/81
13
13
13
13
13
13
12
12
12
12
12
12
13
13
13
13
13
13
13
13
13
13
13
13
14
14
14
14
14
14
14
14
14
14
14
14
15
15
15
15
15
15
12/4/81
12/4/81
12/4/81
12/4/81
12/4/81
12/4/81
Range of rates in recent years 2
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
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
4i/z
5
5-5 '/5
5V5
5V2-5V*
53/4
53/4-6
6
6-6 VS
6 >/2
7
i-m
7V5
4V5
5
5 V5
51/2
5V5
53/4
6
6
61/5
61/5
1
m
71/2
7V5-8
8
73/4-8
73/4
8
8
73/4
73/4
71/4-73/4
7V4-73/4
7'/4
63/4-71/4
63/4
61/4-63/4
61/4
6-61/4
6
73/4
71/4
7'/4
63/4
63/4
61/4
6'/4
6
6
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
19.
23.
Nov. 22.
26.
5'/>-6
51/5
51/4-51/!
51/4
5 V5
51/5
51/4
5'/4
1979— Sept. 19
21
Oct. 8
10
1977— Aug. 30.
31.
Sept. 2.
Oct. 26.
51/4-53/4
51/4-53/4
53/4
6
51/4
53/4
53/4
6
1978— Jan.
6-6'/5
6 '/5
6V5-7
7
7-71/4
71/4
73/4
61/5
6V5
7
7
71/4
71/4
73/4
1.
3.
8-81/5
8 V5
8V5-91/5
9V5
8'/5
8i/5
91/5
9V5
1979— July 20.
Aug. 17.
10
10-10V5
10
10'/5
101/5
Effective date
1976— Jan.
9.
20.
May 11.
12.
1974— Apr. 25
30
Dec. 9
16
1975— Jan.
6
10
24
Feb. 5
7
Mar. 10
14
May 16
23
July
July
Aug.
Sept.
Oct.
Nov.
3.
10.
21.
22.
16.
20.
20.
1. Applicable to advances when exceptional circumstances or practices involve
only a particular depository institution and to advances when an institution is under
sustained liquidity pressures. See section 201.3(b)(2) of Regulation A.
2. Rates for short-term adjustment credit. For description and earlier data see
the following publications of the Board of Governors: Banking and Monetary
Statistics, 1914-1941 and 1941-1970; Annual Statistical Digest, 1970-1979, and 1980.
\m
Effective date
Range (or
level)—
All F.R.
Banks
W/i-W
F.R.
Bank
of
N.Y.
11
11-12
12
11
11
12
12
1980— Feb. 15
19
May 29
30
June 13
16
July 28
29
Sept. 26
Nov. 17
Dec. 5
8
12-13
13
12-13
12
11-12
11
10-11
10
11
12
12-13
13
13
13
13
12
11
11
10
10
11
12
13
13
1981— May
May
Nov.
Nov.
Dec.
13-14
14
13-14
13
12
14
14
13
13
12
12
12
5
8
2
6
4
In effect May 31, 1982
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term adjustment credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than 4 weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. There was no surcharge until Nov. 17, 1980, when a 2 percent surcharge was
adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and
to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective
Sept. 22, 1981, and to 2 percent effective Oct. 12. As of Oct. 1, the formula for
applying the surcharge was changed from a calendar quarter to a moving 13-week
period. The surcharge was eliminated on Nov. 17, 1981.
A8
1.15
DomesticNonfinancialStatistics • June 1982
DEPOSITORY INSTITUTIONS RESERVE REQUIREMENTS 1
Percent of deposits
Type of deposit, and deposit interval
in millions of dollars
Net demand2
0-2
2-10
10-100
100-400
Over 400
Time and savings2-3
Savings
Time4
0-5, by maturity
30-179 days
180 days to 4 years
4 years or more
Over 5, by maturity
30-179 days
180 days to 4 years
4 years or more
Member bank requirements
before implementation of the
Monetary Control Act
Percent
Effective date
7
9lA
im
12%
16 W
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
Depository institution requirements
after implementation of the
Monetary Control Act 5
Percent
Effective date
3
12
11/13/80
11/13/80
Nonpersonal time deposits8
By original maturity
Less than 3'/S years
3'/i years or more
3
0
4/29/82
4/29/82
Eurocurrency liabilities
All types
3
11/13/80
Net transaction accounts6,7
3
3/16/67
3
2VS
1
3/16/67
1/8/76
10/30/75
6
2lA
1
12/12/74
1/8/76
10/30/75
1. For changes in reserve requirements beginning 1963, see Board's Annual
Statistical Digest, 1971-1975 and for prior changes, see Board's Annual Report for
1976, table 13. Under provisions of the Monetary Control Act, depository institutions include commercial banks, mutual savings banks, savings and loan associations, credit unions, agencies and branches of foreign banks, and Edge Act
corporations.
2. (a) Requirement schedules are graduated, and each deposit interval applies
to that part of the deposits of each bank. Demand deposits subject to reserve
requirements were gross demand deposits minus cash items in process of collection
and demand balances due from domestic banks.
(b) The Federal Reserve Act as amended through 1978 specified different ranges
of requirements for reserve city banks and for other banks. Reserve cities were
designated under a criterion adopted effective Nov. 9,1972, by which a bank having
net demand deposits of more than $400 million was considered to have the character
of business of a reserve city bank. The presence of the head office of such a bank
constituted designation of that place as a reserve city. Cities in which there were
Federal Reserve Banks or branches were also reserve cities. Any banks having net
demand deposits of $400 million or less were considered to have the character of
business of banks outside of reserve cities and were permitted to maintain reserves
at ratios set for banks not in reserve cities.
(c) Effective Aug. 24, 1978, the Regulation M reserve requirements on net
balances due from domestic banks to their foreign branches and on deposits that
foreign branches lend to U.S. residents were reduced to zero from 4 percent and
1 percent respectively. The Regulation D reserve requirement on borrowings from
unrelated banks abroad was also reduced to zero from 4 percent.
(d) Effective with the reserve computation period beginning Nov. 16, 1978,
domestic deposits of Edge corporations were subject to the same reserve requirements as deposits of member banks.
3. (a) Negotiable order of withdrawal (NOW) accounts and time deposits such
as Christmas and vacation club accounts were subject to the same requirements as
savings deposits.
(b) The average reserve requirement on savings and other time deposits before
implementation of the Monetary Control Act had to be at least 3 percent, the
minimum specified by law.
4. (a) Effective Nov. 2,1978, a supplementary reserve requirement of 2 percent
was imposed on large time deposits of $100,000 or more, obligations of affiliates,
and ineligible acceptances. This supplementary requirement was eliminated with
the maintenance period beginning July 24, 1980.
(b) Effective with the reserve maintenance period beginning Oct. 25, 1979, a
marginal reserve requirement of 8 percent was added to managed liabilities in
excess of a base amount. This marginal requirement was increased to 10 percent
beginning Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and
NOTES TO TABLE 1.16
18. Effective Dec. 1,1981, depository institutions were authorized to offer time
deposits not subject to interest rate ceilings when the funds are deposited to the
credit of, or in which the entire beneficial interest is held by, an individual pursuant
to an IRA agreement or Keogh (H.R. 10) plan. Such time deposits must have a
minimum maturity of 18 months, and additions may be made to the time deposit
at any time before its maturity without extending the maturity of all or a portion
of the balance of the account.
19. Effective May 1, 1982, depository institutions were authorized to offer negotiable or nonnegotiable time deposits with a minimum original maturity of
years or more that are not subject to interest rate ceilings. Such time deposits have
no minimum denomination, but must be made available in a $500 denomination.
Additional deposits may be made to the account during the first year without
extending its maturity.
Type of deposit, and
deposit interval
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 nonmember institutions, and certain other obligations. In general, the base for the
marginal reserve requirement was originally the greater of (a) $100 million or (b)
the average amount of the managed liabilities held by a member bank, Edge
corporation, or family of U.S. branches and agencies of a foreign bank for the two
statement weeks ending Sept. 26,1979. For the computation period beginning Mar.
20,1980, the base was lowered by (a) 7 percent or (b) the decrease in an institution's
U.S. office gross loans to foreigners and gross balances due from foreign offices
of other institutions between the base period (Sept. 13-26, 1979) and the week
ending Mar. 12,1980, whichever was greater. For the computation period beginning
May 29,1980, the base was increased by 7 Vl percent above the base used to calculate
the marginal reserve in the statement week of May 14-21, 1980. In addition,
beginning Mar. 19,1980, the base was reduced to the extent that foreign loans and
balances declined.
5. For existing nonmember banks and thrift institutions at the time of implementation of the Monetary Control Act, the phase-in period ends Sept. 3, 1987.
For existing member banks the phase-in period is about three years, depending on
whether their new reserve requirements are greater or less than the old requirements. For existing agencies and branches of foreign banks, the phase-in ends Aug.
12, 1982. New institutions have a two-year phase-in beginning with the date that
they open for business, except for those institutions having total reservable liabilities
of $50 million or more.
6. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment
orders of withdrawal, and telephone and preauthorized transfers (in excess of three
per month) for the purpose of making payments to third persons or others.
7. The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement will apply be modified
annually to 80 percent of the percentage increase in transaction accounts held by
all depository institutions on the previous June 30. At the beginning of 1982 the
amount was accordingly increased from $25 million to $26 million.
8. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which the beneficial interest is
held by a depositor that is not a natural person. Also included are certain transferable time deposits held by natural persons, and certain obligations issued to
depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.
NOTE. Required reserves must be held in the form of deposits with Federal
Reserve Banks or vault cash. After implementation of the Monetary Control Act,
nonmembers may maintain reserves on a pass-through basis with certain approved
institutions.
NOTE. 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 Coiporation, 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 Institutions Deregulation Committee. The maximum rates on time deposits in denominations of
$100,000 or more with maturities of 30-89 days were suspended in June 1970; such
deposits maturing in 90 days or more were suspended in May 1973. For information
regarding previous interest rate ceilings on all types of accounts, see earlier issues
of the FEDERAL RESERVE BULLETIN, the Federal Home Loan Bank Board Journal,
and the Annual Report of the Federal Deposit Insurance Corporation.
Policy Instruments
1.16
A9
MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions
Percent per annum
Savings and loan associations and
mutual savings banks (thrift institutions)
Commercial banks
Type and maturity of deposit
In effect May 31, 1982
Percent
1 Savings
2 Negotiable order of withdrawal accounts 2
Time accounts 3
Fixed ceiling rates by maturity 4
3
14-89 d a y s '
4
90 days to 1 vear
5
1 to 2 years
6
2 to 2Vi years 7
7
2Vl 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) 10
12
Individual retirement accounts and Keogh (H.R. 10)
plans (3 years or more) 10,11
13
14
15
16
17
18
Special variable ceiling rates by maturity
91-day time deposits 1 3
6-month money market time deposits 14
12-month all savers certificates "
2Vi years to less than 3Vi years 16
Accounts with no ceiling rates
Individual retirement accounts and Keogh (H.R. 10)
plans (18 months or more) 18
3 Vi years or more time deposits 19
5V4
51/4
51/4
53/4
Effective
date
6 Vi
71/2
73/4
Effective
date
7/1/73
1/1/74
5VS
7/1/73
7/1/73
1/21/70
1/21/70
1/21/70
(6)
6
7/1/73
11/1/73
12/23/74
6/1/78
6/1/78
5V5
5V5
5%
53/4
IVA
11/1/73
73/4
7 3 /4
i 2/23/74
(')
11/1/73
12/23/74
6/1/78
6/1/78
6/1/78
7 3 /4
7/6/77
6/1/78
8/1/79
1/1/80
(.6)
1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loans.
2. For authorized states only. Federally insured commercial banks, savings and
loan associations, cooperative banks, and mutual savings banks in Massachusetts
and New Hampshire were first permitted to offer negotiable order of withdrawal
(NOW) accounts on Jan. 1, 1974. Authorization to issue NOW accounts was extended to similar institutions throughout New England on Feb. 27, 1976, in New
York State on Nov. 10, 1978, and in New Jersey on Dec. 28, 1979. Authorization
to issue N O W accounts was extended to similar institutions nationwide effective
Dec. 31, 1980.
/
3. For exceptions with respect to certain foreign time deposits see the BULLETIN
for October 1962 (p. 1279), August 1965 (p. 1084), and February 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 to 14 days at mutual savings banks.
5. Effective Oct. 30, 1980, the minimum maturity or notice period for time
deposits was decreased from 30 to 14 days at commercial banks.
6. No separate account category.
7. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was
required for savings and loan associations, except in areas where mutual savings
banks permitted lower minimum denominations. This restriction was removed for
deposits maturing in less than 1 year, effective Nov. 1, 1973.
8. No minimum denomination. Until July 1, 1979, the minimum denomination
was $1,000 except for deposits representing funds contributed to an individual
retirement account (IRA) or a Keogh (H.R. 10) plan established pursuant to the
Internal Revenue Code. The $1,000 minimum requirement was removed for such
accounts in December 1975 and November 1976 respectively.
9. Between July 1, 1973, and Oct. 31, 1973, certificates maturing in 4 years or
more with minimum denominations of $1,000 had no ceiling; however, the amount
of such certificates that an institution could issue was limited to 5 percent of its
total time and savings deposits. Sales in excess of that amount, as well as certificates
of less than $1,000, were limited to the 6Vi percent ceiling on time deposits maturing
in 2Vl 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 denomination requirements.
11. Effective Jan. 1, 1980, commercial banks are permitted to pay the same rate
as thrifts on I R A and Keogh accounts and accounts of governmental units when
such deposits are placed in the new 2'/i-year or more variable-ceiling certificates
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. Effective May 1, 1982, depository institutions were authorized to offer time
deposits that have a minimum denomination of $7,500 and a maturity of 91 days.
The ceiling rate of interest on these deposits is indexed to the discount rate (auction
average) on most recently issued 91-day Treasury bills for thrift institutions and
the discount rate minus 25 basis points for commercial banks. The rate differential
ends 1 year from the effective date of these instruments and is suspended at any
time the Treasury bill discount rate is 9% or below for four consecutive auctions.
The maximum allowable rates in May (in percent) for commercial banks were as
follows: May 1, 12.219; May 4, 12.425; May 11, 11.998; May 18, 11.939; May 25,
11.23; May 29, 11.27; and for thrift institutions: May 1, 12.469; May 4, 12.675;
May 11, 12.248; May 18, 12.189; May 25, 11.48; May 29, 11.52.
14. Commercial banks and thrift institutions were authorized to offer money
market time deposits effective June 1, 1978. These deposits have a minimum denomination requirement of $10,000 and a maturity of 26 weeks. The ceiling rate
of interest on these deposits is indexed to the discount rate (auction average) on
most recently issued 26-week U.S. Treasury bills. Interest on these certificates may
not be compounded. Effective for all 6-month money market certificates issued
In effect May 31, 1982
Effective
date
7/1/79
12/31/80
7/1/73
m
Previous maximum
5
(17)
51/4
6Vi
63/4
IVI
7/1/79
12/31/80
1/1/80
(')
Previous maximum
Percent
5'/4
5
(6)
53/4
53/4
6
6
IVi
^73/4
73/4
(16)
beginning Nov. 1, 1981, depository institutions may pay rates of interest on these
deposits indexed to the higher of (1) the rate for 26-week Treasury bills established
immediately before the date of deposit (bill rate) or (2) the average of the four
rates for 26-week Treasury bills established for the 4 weeks immediately before
the date of deposit (4-week average bill rate). Ceilings are determined as follows:
Bill rate or 4-week
average bill rate
7.50 percent or below
Above 7.50 percent
7.25 percent or below
Above 7.25 percent, but below
8.50 percent
8.50 percent or above, but below
8.75 percent
8.75 percent or above
Commercial bank ceiling
7.75 percent
1/4 of 1 percentage point plus the higher of
the bill rate or 4-week average bill rate
Thrift ceiling
7.75 percent
Vi of 1 percentage point plus the higher of
the bill rate or 4-week average bill rate
9 percent
1/4 of 1 percentage point plus the higher of
the bill rate or 4-week average bill rate
The maximum allowable rates in May for commercial banks and thrifts based on
the bill rate were as follows: May 4, 13.03; May 11, 12.486; May 18, 12.437; May
25, 11.927; May 29, 11.839. The maximum allowable rates in May for commercial
banks and thrifts based on the 4-week average bill rate were as follows: May 4,
13.009; May 11, 12.843; May 18, 12.71; May 25, 12.47; May 29, 12.172.
15. Effective Oct. 1, 1981, depository institutions are authorized to issue all
savers certificates (ASCs) with a 1-year maturity and an annual investment yield
equal to 70 percent of the average investment yield for 52-week U.S. Treasury bills
as determined by the auction of 52-week Treasury bills held immediately before
the calendar week in which the certificate is issued. A maximum less than 9.50
percent, commercial banks may pay lifetime exclusion of $1,000 ($2,000 on a joint
return) from gross income is generally authorized for interest income from ASCs.
The annual investment yields for ASCs issued in May (in percent) were as follows:
May 16, 9.87.
16. Effective Aug. 1, 1981, commercial banks may pay interest on any variable
ceiling nonnegotiable time deposit with an original maturity of 2Vi years to less
than 4 years at a rate not to exceed '/4 of 1 percent below the average 2Vi-year
yield for U.S. Treasury securities as determined and announced by the Treasury
Department immediately before the date of deposit. Effective May 1, 1982, the
maximum maturity for this category of deposits was reduced to less than 3Vi years.
Thrift institutions may pay interest on these certificates at a rate not to exceed the
average 2Vi -year yield for Treasury securities as determined and announced by
the Treasury Department immediately before the date of deposit. If the announced
average 2Vi-year yield for Treasury securities is 9.25 percent and thrift institutions
9.50 percent for these deposits. These deposits have no required minimum denomination, and interest may be compounded on them. The ceiling rates of interest at
which they may be offered vary biweekly. The maximum allowable rates in May
(in percent) for commercial banks were as follows: May 11, 13.6; May 25, 13.4;
and for thrifts: May 11, 13.85; May 25, 13.65.
17. Between Jan. 1, 1980, and Aug. 1, 1981, commercial banks, and thrifts were
authorized to offer variable ceiling nonnegotiable time deposits with no required
minimum denomination and with maturities of 2Vi years or more. Effective Jan.
1, 1980, the maximum rate for commercial banks was 3/4 percentage point below
the average yield on 2Vi-year U.S. Treasury securities; the ceiling rate for thrifts
was 1/4 percentage point higher than that for commercial banks. Effective Mar. 1,
1980, a temporary ceiling of 1V/4 percent was placed on these accounts at commercial banks and 12 percent on these accounts at savings and loans. Effective
June 2, 1980, the ceiling rates for these deposits at commercial banks and savings
and loans was increased Vi percentage point. The temporary ceiling was retained,
and a minimum ceiling of 9.25 percent for commercial banks and 9.50 percent for
thrifts was established.
NOTES are continued on opposite page.
A10
1.17
DomesticNonfinancialStatistics • June 1982
F E D E R A L RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1981
Type of transaction
1979
1980
1982
1981
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
U . S . GOVERNMENT SECURITIES
Outright transactions (excluding matched
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
15,998
6,855
0
2,900
7,668
7,331
0
3,389
13,899
6,746
0
1,816
241
1,157
0
200
1,765
0
0
16
2,170
0
0
0
0
2,756
0
600
1,017
868
0
0
474
995
0
600
4,149
0
0
0
Others within 1 year1
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
3,203
0
17,339
-11,308
2,600
912
0
12,427
-18,251
0
317
23
13,794
-12,869
0
0
0
425
0
0
0
0
1,389
-3,047
0
80
0
887
-754
0
0
0
542
0
0
20
0
2,633
-940
0
0
0
900
-1,479
0
132
0
333
-525
0
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
2,148
0
-12,693
7,508
2,138
0
-8,909
13,412
1,702
0
-10,299
10,117
0
0
-425
0
100
0
-1,057
2,325
526
0
-887
754
0
0
-542
0
50
0
-974
765
0
0
-900
1,479
570
0
-333
525
14
IS
16
1/
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
523
0
-4,646
2,181
703
0
-3,092
2,970
393
0
-3,495
1,500
0
0
0
0
0
0
-332
400
165
0
0
0
0
0
0
0
0
0
-1,659
100
0
0
0
0
81
0
0
0
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
454
0
0
1,619
811
0
-426
1,869
379
0
0
1,253
0
0
0
0
0
0
0
322
108
0
0
0
0
0
0
0
0
0
0
75
0
0
0
0
52
0
0
0
22
23
24
All maturities1
Gross purchases
Gross sales
Redemptions
22,325
6,855
5,500
12,232
7,331
3,389
16,690
6,769
1,816
241
1,157
200
1,865
0
16
3,049
0
0
0
2,756
600
1,087
868
0
474
995
600
4,984
0
0
25
26
Matched transactions
Gross sales
Gross purchases
627,350
624,192
674,000
675,496
589,312
589,647
58,581
58,372
42,012
41,900
54,098
54,044
51,132
51,717
28,033
28,258
38,946
38,650
44,748
44,759
27
28
Repurchase agreements
Gross purchases
Gross sales
107,051
106,968
113,902
113,040
79,920
78,733
3,902
3,902
9,505
7,709
14,180
12,760
12,962
12,914
18,656
21,919
8,595
6,998
18,396
14,724
6,896
3,869
9,626
-1,325
3,534
4,415
-2,724
-2,820
179
8,667
853
399
134
668
0
145
494
0
108
0
0
15
494
0
10
0
0
4
0
0
68
0
0
32
0
0
13
0
0
5
37,321
36,960
28,895
28,863
13,320
13,576
787
787
1,607
1,288
1,647
1,697
800
935
872
1,006
554
471
2,033
1,119
681
555
130
-15
802
-54
-203
-166
70
909
116
73
-582
0
744
-549
402
-597
488
280
7,693
4,497
9,175
-1,340
5,080
3,812
-2,524
-3,583
737
9,856
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
30
31
32
Outright transactions
Gross purchases
Gross sales
Redemptions
33
34
Repurchase agreements
Gross purchases
Gross sales
35 Net change in federal agency obligations
BANKERS ACCEPTANCES
36 Repurchase agreements, net
37 Total net change in System Open Market
Account
1. Both gross purchases and redemptions include special certificates created
when the Treasury borrows directly from the Federal Reserve, as follows (millions
of dollars): March 1979. 2,600.
NOTE. Sales, redemptions, and negative figures reduce holdings of the System
Open Market Account; all other figures increase such holdings. Details may not
add to totals because of rounding.
Reserve Banks
1.18
FEDERAL RESERVE BANKS
Millions of dollars
All
Condition and Federal Reserve Note Statements
Account
Apr. 28
May 5
Wednesday
End of month
1982
1982
May 19
May 12
May 26
Apr.
Mar.
May
Consolidated condition statement
ASSETS
11,150
3,818
403
11,149
3,818
396
11,149
3,818
393
11,149
3,818
397
11,149
3,818
393
11,150
3,568
432
11,149
3,818
411
11,149
3,818
386
6,180
0
1,251
0
1,757
0
1,058
0
1,367
0
2,646
0
1,799
0
1,058
0
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4
To depository institutions
5
Other
Acceptances
6
Held under repurchase agreements
Federal agency obligations
7
Bought outright
Held under repurchase agreements
8
U.S. government securities
Bought outright
9
Bills
10
Notes
11
Bonds
12
Total 1
13 Held under repurchase agreements
14 Total U.S. government securities
192
0
0
944
0
488
768
0
9,008
348
9,008
0
9,008
0
9,008
417
9,008
0
9,013
82
9,008
996
9,008
0
49,687
60,389
18,090
128,166
2,205
130,371
49,948
61,143
18,141
129,232
0
129,232
50,561
61,143
18,141
129,845
0
129,845
49,074
61,143
18,141
128,358
2,933
131,291
49,481
61,143
18,141
128,765
0
128,765
45,543
60,359
18,090
123,992
1,597
125,589
49,704
61,143
18,141
128,988
5,269
134,257
50,123
61,143
18,141
129,407
0
129,407
15 Total loans and securities
146,099
139,491
140,610
142,718
139,140
137,818
146,828
139,473
9,427
515
9,102
514
8,564
515
7,599
516
6,977
518
7,989
510
8,449
514
8,033
518
4,981
4,236
5,109
4,121
4,782
4,357
4,790
3,288
4,794
3,145
4,953
3,566
5,591
4,289
4,880
3,237
180,629
173,700
174,188
174,275
169,934
169,986
181,049
171,494
130,500
131,386
132,511
132,165
132,619
128,855
130,189
132,619
26,673
10,869
264
484
25,892
4,354
283
510
26,954
3,051
227
541
26,978
3,697
241
507
23,082
2,969
272
545
26,357
2,866
421
425
24,702
12,239
966
450
23,463
2,540
308
523
38,290
31,039
30,773
31,423
26,868
30,069
38,357
26,834
6,557
2,374
6,129
2,149
5,862
2,121
5,591
2,174
5,329
2,184
6,107
2,155
6,942
2,497
6,257
2,643
177,721
170,703
171,267
171,353
167,000
167,186
177,985
168,353
1,308
1,278
322
1,307
1,278
412
1,309
1,278
334
1,315
1,278
329
1,316
1,278
340
1,298
1,278
224
1,308
1,278
478
1,316
1,278
547
180,629
173,700
174,188
174,275
169,934
169,986
181,049
171,494
90,775
91,410
90,529
91,892
90,885
92,825
90,609
91,025
16 Cash items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies 2
19 All other 3
20 Total assets
LIABILITIES
21 Federal Reserve notes
Deposits
22 Depository institutions
23 U.S. Treasury—General account
24
Foreign—Official accounts
25
Other
26 Total deposits
27 Deferred availability cash items
28 Other liabilities and accrued dividends 4
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
33 Total liabilities and capital accounts
34 MEMO: Marketable U.S. government securities held in
custody for foreign and international account
Federal Reserve note statement
35 Federal Reserve notes outstanding (issued to bank)
LESS: Held by bank 5
36
37
Federal Reserve notes, net
Collateral for Federal Reserve notes
38 Gold certificate account
39 Special drawing rights certificate account
40
Other eligible assets
41 U.S. government and agency securities
42
Total collateral
152,898
22,398
130,500
152,768
21,382
131,386
152,760
20,249
132,511
152,894
20,729
132,165
153,095
20,476
132,619
152,039
23,184
128,855
152,734
22,545
130,189
152,932
20,313
132,619
11,150
3,818
0
115,532
11,149
3,818
0
116,419
11,149
3,818
0
117,544
11,149
3,818
0
117,198
11,149
3,818
0
117,652
11,150
3,568
64
114,073
11,149
3,818
0
115,222
11,149
3,818
0
117,652
130,500
131,386
132,511
132,165
132,619
128,855
130,189
132,619
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. Treasury. Assets shown in this line are revalued monthly at market exchange rates.
3. Includes special investment account at Chicago of Treasury bills maturing
within 90 days.
4. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
5. Beginning September 1980, Federal Reserve notes held by the Reserve Bank
are exempt from the collateral requirement.
A12
1.19
DomesticNonfinancialStatistics • June 1982
FEDERAL RESERVE BANKS
Maturity Distribution of Loan and Security Holdings
Millions of dollars
Type and maturity groupings
Apr. 28
Wednesday
End of month
1982
1982
May 12
May 5
May 19
Mar. 31
May 26
Apr. 30
May 28
1 Loans—Total
2 Within 15 days
3 16 days to 90 days
4 91 days to 1 year
6,180
6.140
40
0
1,251
1,104
147
0
1,757
1,596
161
0
1,058
1,043
15
0
1,367
1,342
25
0
2,646
2,552
94
0
1.799
1,704
95
0
1,058
1,010
48
0
5 Acceptances—Total
6 Within 15 days
7 16 days to 90 days
8 91 days to 1 year
192
192
0
0
0
0
0
0
0
0
0
0
944
944
0
0
0
0
0
0
488
488
0
0
768
768
0
0
0
0
0
0
9 U.S. government securities—Total
10 Within 15 days1
11 16 days to 90 days
12 91 days to 1 year
13 Over 1 year to 5 years
14 Over 5 years to 10 years
15 Over 10 years
130,371
6,451
27,186
33,915
35,918
10,192
16,709
129,232
8,036
24,162
33,335
36,665
10,274
16,760
129,845
8,903
23,869
33,374
36,665
10,274
16,760
131,291
7,638
27,230
31,156
37,790
10,717
16,760
128,765
4,273
26,955
32,270
37,790
10,717
16,760
125,589
3,889
25,506
33,389
35,903
10,193
16,709
134,257
9,832
26,284
34,442
36,665
10,274
16,760
129,407
3,090
28,912
32,138
37,790
10,717
16,760
16 Federal agency obligations—Total
17 Within 15 days1
18 16 days to 90 days
19 91 days to 1 year
20 Over 1 year to 5 years
21 Over 5 years to 10 years
22 Over 10 years
9.356
433
465
1.592
5,413
919
534
9,008
0
593
1,549
5,413
919
534
9,008
140
499
1,628
5,288
919
534
9.425
616
440
1,628
5,288
919
534
9,008
105
394
1,661
5,387
927
534
9,095
326
400
1,460
5,444
934
531
10,004
1,082
465
1,591
5,413
919
534
9,008
105
510
1,545
5,387
927
534
1. Holdings under repurchase agreements are classified as maturing within 15
days in accordance with maximum maturity of the agreements.
1.20
BANK DEBITS A N D DEPOSIT TURNOVER
Debits are shown in billions of dollars, turnover as ratio of debits to deposit. Monthly data are at annual rates.
1981
Bank group, or type of customer
1978
1979
1982
1980
Dec.
Jan.
Feb.
Mar.
Apr.
83,617.4
34,218.3
49,399.1
83,404.1
35.238.0
48.166.1
935.4
115.4
586.9
1,637.6
1.072.5
103.0
609.6
1,785.1
304.7
1,211.7
200.7
301.3
1,255.3
193.7
14.2
14.6
3.9
7.3
15.4
13.2
4.0
7.8
1
Debits to demand deposits (seasonally adjusted)
1 All commercial banks
2 Major New York City banks
3 Other banks
40,297.8
15,008.7
25,289.1
49,775.0
18,512.7
31,262.3
63.013.4
25.192.5
37,820.9
86,430.0
34,937.3
51,492.7
83,804.4
35,117.6
48,686.8
85,274.3
35,983.8
49,290.5
Debits to savings deposits2 (not seasonally adjusted)
4
5
6
7
ATS/NOW3
Business4
Others 5
All accounts
17.1
56.7
359.7
432.9
83.3
77.3
515.2
675.8
158.4
93.4
605.3
857.2
903.5
117.9
597.0
1,618.4
934.7
104.4
636.8
1,675.8
836.7
95.2
534.8
1,466.7
Demand deposit turnover1 (seasonally adjusted)
8 All commercial banks
9 Major New York City banks
10 Other banks
139.4
541.9
96.8
163.5
646.2
113.3
201.6
813.7
134.3
309.2
1,156.8
206.6
293.4
1,129.0
191.2
307.1
1,252.1
198.0
Savings deposit turnover2 (not seasonally adjusted)
11
12
13
14
ATS/NOW3
Business4
Others 5
All accounts
7.0
5.1
1.7
1.9
1. Represents accounts of individuals, partnerships, and corporations, and of
states and political subdivisions.
2. Excludes special club accounts, such as Christmas and vacation clubs.
3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts
authorized for automatic transfer to demand deposits (ATS). ATS data availability
starts with December 1978.
4. Represents corporations and other profit-seeking organizations (excluding
commercial banks but including savings 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 December 1978, ATS.
7.8
7.2
2.7
3.1
9.7
9.3
3.4
4.2
14.6
13.9
4.0
7.4
14.3
12.5
4.2
7.5
13.0
12.1
3.6
6.6
NOTE. 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 As, which were
available through June 1977. Back data are available from Publications 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
A13
MONEY STOCK MEASURES A N D COMPONENTS
Billions of dollars, averages of daily figures
1982
item
1978
1979
1980
1981
Dec.
Dec.
Dec.
Dec.
Jan.
Feb.
Mar.
Apr.
Seasonally adjusted
MEASURES1
1 Ml
2 M2
3 M3
2
4 L
363.2
1,403.9
1,629.0
1,938.9
389.0
1,518.9
1,779.3
2,153.9
414.5
1,656.1
1,963.1
2,370.4
97.4
3.5
253.9
8.4
479.9
533.9
194.6
106.1
3.7
262.2
16.9
421.7
652.6
221.8
116.2
4.2
267.2
26.9
398.9
751.7
257.9
440.9
1,822.4
2,187.8
2,640.9R
448.6
1,840.9
2,204.0R
2,658.6
123.1
4.3
236.4
77.0
343.6
854.7
300.4
123.8
4.3
239.3
81.1
348.8
852.3
302.7
447.3
1,847.5
2,214.6'
448.2
1,864.8'
2,235.5'
n.a.
n.a.
124.6
4.3
234.5
83.8
348.6
859.5
308.1R
125.1
4.4
233.0
85.7
350.7
870.1
312.2
452.3
1,879.7
2,256.6
n.a.
SELECTED COMPONENTS
5
6
7
8
9
10
11
Currency
Traveler's checks3
Demand deposits
Other checkable deposits7
Savings deposits4
Small-denomination time deposits5
Large-denomination time deposits6
126.3
4.4
233.0
88.6
350.5
881.6
315.9
Not seasonally adjusted
MEASURES1
12
13
14
15
Ml
M2
M3
L2
372.5
1,408.5
1,637.5
1,946.6
398.8
1,524.6
1,789.2
2,162.8
424.6
1,662.4
1,973.8
2,380.2
451.2
1,829.1
2,199.6
2,651.9'
99.4
3.3
261.5
8.4
24.1
478.0
531.1
108.2
3.5
270.1
17.0
26.3
420.5
649.7
118.3
3.9
275.1
27.2
35.0
398.0
748.9
125.4
4.1
243.3
78.4
38.1
343.0
851.7
7.1
3.1
198.6
34.3
9.3
226.0
61.8
13.9
262.3
150.8
33.7
305.5
453.4
1,848.8
2,216.8
2,673.1
437.1
1,842.4
2,215.6'
n.a.
440.0
1,861.5
2,237.1'
n.a.
123.3
4.1
243.6
82.5
43.3
346.8
857.5'
123.0
4.1
228.5
81.4
43.0
344.5
868.5
123.8
4.2
228.2
83.8
43.3
346.1
879.7
125.6
4.2
236.1
89.5
40.6
348.1
888.1
154.4
32.5
307.6
155.4
30.5
314.3'
158.4
31.5
317.1'
160.7
31.5
316.6
455.4
1,886.9
2,264.6
n.a.
SELECTED COMPONENTS
16
17
18
19
20
21
22
Currency
Traveler's checks3
Demand deposits
Other checkable deposits7
Overnight RPs and Eurodollars 8
Savings deposits4
Small-denomination time deposits5
Money market mutual funds
23 General purpose and broker/dealer
24 Institution only
25 Large-denomination time deposits6
1. Composition of the money stock measures is as follows:
Ml: Averages of daily figures for (1) currency outside the Treasury, Federal
Reserve Banks, and the vaults of commercial banks; (2) traveler's checks of nonbank issuers; (3) demand deposits at all commercial banks other than those due
to domestic banks, the U.S. government, and foreign banks and official institutions
less cash items in the process of collection and Federal Reserve float; and (4)
negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at banks and thrift institutions, credit union share draft (CUSD) accounts,
and demand deposits at mutual savings banks.
M2: Ml plus savings and small-denomination time deposits at all depository
institutions, overnight repurchase agreements at commercial banks, overnight Eurodollars held by U.S. residents other than banks at Caribbean branches of member
banks, and balances of money market mutual funds (general purpose and broker/
dealer).
M3: M2 plus large-denomination time deposits at all depository institutions, term
RPs at commercial banks and savings and loan associations, and balances of institution-only money market mutual funds.
2. L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents
other than banks, bankers acceptances, commercial paper. Treasury bills and other
liquid Treasury securities, and U.S. savings bonds.
3. Outstanding amount of U.S. dollar-denominated traveler's checks of nonbank
issuers.
4. Savings deposits exclude NOW and ATS accounts at commercial banks and
thrift institutions and CUSDs at credit unions.
5. Small-denomination time deposits—including retail RPs—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 and are net of the holdings of domestic banks, thrift institutions, the U.S.
government, money market mutual funds, and foreign banks and official institutions.
7. Includes ATS and NOW balances at all institutions, credit union share draft
balances, and demand deposits at mutual savings banks.
8. Overnight (and continuing contract) RPs are those issued by commercial
banks to other than depository institutions and money market mutual funds (general
purpose and broker/dealer), and overnight Eurodollars are those issued by Caribbean branches of member banks to U.S. residents other than depository institutions and money market mutual funds (general purpose and broker/dealer).
NOTE. Latest monthly and weekly figures are available from the Board's H.6
(508) release. Back data are available from the Banking Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.
A14
1.22
DomesticNonfinancialStatistics • June 1982
A G G R E G A T E RESERVES OF DEPOSITORY INSTITUTIONS A N D MONETARY BASE 1
Billions of dollars, averages of daily figures
1981
item
1978
Dec.
1979
Dec.
1982
1980
Dec.
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS2
1 Total reserves3
35.08
36.37
39.01
39.73
39.81
40.31
40.12
40.15
40.53
41.28
40.93
41.09
41.18
2 Nonborrowed reserves
3 Required reserves
4 Monetary base4
34.22
34.85
134.7
34.90
36.04
145.0
37.32
38.49
158.0
38.05
39.39
162.5
38.39
39.52
162.9
38.86
39.90
163.7
38.94
39.84
163.8
39.49
39.81
164.3
39.89
40.21
165.8
39.76
40.86
167.4
39.14
40.62
167.9
39.53
40.73
168.5
39.61
40.91
169.8
Not seasonally adjusted
5 Total reserves3
35.66
36.97
39.70
39.64
39.48
40.09
40.22
40.33
41.26
42.70
40.74
40.53
41.09
6 Nonborrowed reserves
7 Required reserves
8 Monetary base4
34.80
35.43
137.4
35.50
36.65
147.9
38.01
39.19
161.0
37.96
39.30
163.3
38.06
39.19
163.2
38.63
39.67
163.3
39.04
39.94
163.8
39.67
39.99
165.6
40.63
40.94
168.9
41.18
42.28
168.5
38.95
40.44
166.1
38.98
40.18
166.5
39.52
40.81
168.9
41.68
43.91
40.66
41.01
41.02
40.59
40.71
40.95
41.92
43.20
41.29
39.23
39.56
40.81
41.45
144.6
42.43
43.58
156.2
38.97
40.15
162.4
39.33
40.67
165.4
39.60
40.73
165.4
39.13
40.18
163.9
39.53
40.43
164.3
40.29
40.60
166.3
41.29
41.60
169.7
41.69
42.78
169.1
39.50
40.98
166.8
37.68
38.88
165.4
37.99
39.28
167.6
NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS5
9 Total reserves3
10 Nonborrowed reserves
11 Required reserves
12 Monetary base4
1. Reserve measures from November 1980 to date reflect a one-time increase—
estimated at $550 million to $600 million—in required reserves associated with the
reduction of week-end avoidance activities of a few large banks.
2. Reserve aggregates include required reserves of member banks and Edge Act
corporations ana other depository institutions. Discontinuities associated with the
implementation of the Monetary Control Act, the inclusion of Edge Act corporation
reserves, and other changes in Regulation D have been removed.
3. Reserve balances with Federal Reserve Banks (which exclude required clearing balances) plus vault cash at institutions with required reserve balances plus
vault cash equal to required reserves at other institutions.
4. Includes reserve balances and required clearing balances at Federal Reserve
Banks in the current week plus vault cash held two weeks earlier used to satisfy
reserve requirements at all depository institutions plus currency outside the U.S.
Treasury, Federal Reserve Banks, the vaults of depository institutions, and surplus
vault cash at depository institutions.
5. Reserves of depository institutions series reflect actual reserve requirement
percentages with no adjustments to eliminate the effect of changes in Regulation
D. including changes associated with the implementation of the Monetary Control
Act. Includes required reserves of member banks and Edge Act corporations and,
beginning Nov. 13, 1980, other depository institutions. Under the transitional phasein program of the Monetary Control Act of 1980, the net changes in required
reserves of depository institutions have been as follows: effective Nov. 13, 1980,
a reduction of $2.8 billion; Feb. 12, 1981, an increase of $245 million; Mar. 12,
1981, an increase of $75 million; May 14, 1981, an increase of $245 million; Aug.
13, 1981, an increase of $245 million; Sept. 3, 1981, a reduction of $1.3 billion;
and Nov. 19, 1981, an increase of $220 million.
NOTE. 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, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Monetary Aggregates
1.23
LOANS A N D SECURITIES
A15
All Commercial Banks 1
Billions of dollars; averages of Wednesday figures
1982
1981
r.
Dec.2
Jan. 2
1981
Mar. 2
Feb. 2
Apr. 2
Dec. 2
2 U.S. Treasury securities
3 Other securities
4 Total loans and leases3
5 Commercial and industrial loans
6 Real estate loans
7 Loans to individuals
8 Security loans
9 Loans to nonbank financial
institutions
10 Agricultural loans
11 Lease financing receivables
12 All other loans
Jan. 2
Feb. 2
Mar. 2
Apr. 2
Not seasonally adjusted
Seasonally adjusted
1 Total loans and securities3
1982
1,322.6
1,328.2"
1,337.0s
1,351.1
111.4
232.8
981.8
360.1
286.6
186.4
22.7
113.6
231.7
977.3
360.1
288.1
186.3
20.8
115.644
231.5
981.14
364.2
289.64
185.1
20.1
116.1s
232.6s
s
988.4
368.8
291.5s
184.7
20.3
118.7
234.0
998.4
375.0
293.0
185.5
20.9
33.3
34.4
13.1
46.5
31.2
33.0
12.7
49.2
31.2
33.1
13.0
44.8
31.5
33.3
13.1
44.1
32.2
33.6
13.1
44.2
33.0
33.8
13.1
44.1
1,355.1
1,328.9
1,325.5
1.331.04
1,339.9s
1,353.9
984.7
2.8
980.2
2.9
4
983.9
2.8
991.2s
2.8
1,001.3
2.9
375.1
2.3
10.3
362.3
2.2
9.8
362.3
2.2
9.1
366.5
2.2
9.1
371.0
2.2
9.3
377.2
2.3
9.5
362.5
350.0
12.6
15.2
350.3
334.3
16.1
20.0
351.0
338.3
12.7
16.1
355.2
342.6
12.6
16.2
359.5
346.9
12.6
15.7
365.4
352.8
12.7
14.7
1,316.3
1,320.1
1,332.44
1,342.2s
111.0
231.4
973.9
358.0
285.7
185.1
21.9
114.1
231.5
974.5
360.3
287.5
185.7
20.6
115.I4
4
232.0
985.24
365.6
289.84
185.7
20.8
114.45
s
233.1
994.85
369.7
292.35
186.4
20.9
116.6
234.0
1,001.7
372.8
293.9
186.9
20.9
30.2
33.0
12.7
47.2
31.1
33.3
13.0
43.0
31.4
33.8
13.1
45.0
32.7
34.3
13.1
45.3
1,319.1
1,323.0
1,335.2*
1,345.1s
976.7
2.8
977.4
2.9
4
988.1
2.8
5
997.6
2.8
1,004.6
2.9
360.2
2.2
8.9
362.5
2.2
8.7
367.8
2.2
8.9
371.9
2.2
9.6
349.1
334.9
14.2
19.0
351.6
339.5
12.0
15.4
356.6
344.1
12.5
16.6
360.1
347.4
12.6
16.1
1,352.3
1,326.1
MEMO:
13 Total loans and securities plus loans
sold 36
sold3,6
6
14 Total loans plus loans
15 Total loans sold to affiliates
16 Commercial and industrial loans plus
loans sold6
17 Commercial and industrial loans sold6
18 Acceptances held
19 Other commercial and industrial
loans
20
To U.S. addressees7
21
To non-U.S. addressees
22 Loans to foreign banks
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. Beginning December 1981, shifts of foreign loans and securities from U.S.
banking offices to international banking facilities (IBFs) reduced the levels of
several items. Seasonally adjusted data that include adjustments for the amounts
shifted from domestic offices to IBFs are available in the Board's G.7 (407) statistical release (available from Publications Services, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551).
3. Excludes loans to commercial banks in the United States.
4. The merger of a commercial bank with a mutual savings bank beginning Feb.
24, 1982, increased total loans and securities $1.0 billion; U.S. Treasury securities,
$0.1 billion; other securities, $0.1 billion; total loans and leases, $0.8 billion; and
real estate loans, $0.7 billion.
5. The merger of a commercial bank with a mutual savings bank beginning Mar.
17,1982, increased total loans and securities $0.6 billion; U.S. Treasury securities,
$0.1 billion; other securities $0.1 billion; total loans and leases, $0.4 billion; and
real estate loans, $0.4 billion.
6. Loans sold are those sold outright to a bank's own foreign branches, nonconsolidated nonbank affiliates of the bank, the bank's holding company (if not a
bank), and nonconsolidated nonbank subsidiaries of the holding company.
7. United States includes the 50 states and the District of Columbia.
NOTE. Data are prorated averages of Wednesday estimates for domestically
chartered banks, based on weekly reports of a sample of domestically chartered
banks and quarterly reports of all domestically chartered banks. For foreign-related
institutions, data are averages of month-end estimates based on weekly reports
from large agencies and branches and quarterly reports from all agencies, branches,
investment companies, and Edge Act corporations engaged in banking.
A16
1.24
DomesticNonfinancialStatistics • June 1982
MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1
Monthly averages, billions of dollars
1980
1981
1982
Source
Dec.
1
2
3
4
5
6
Total nondeposit funds
Seasonally adjusted 2
Not seasonally adjusted
Federal funds, RPs, and other borrowings from
nonbanks 3
Seasonally adjusted
Not seasonally adjusted
Net balances due to foreign-related institutions, not seasonally adjusted
Loans sold to affiliates, not seasonally
adjusted 4
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
121.9
122.5
124.1
126.0
122.7
124.6
123.3
127.4
119.8
125.0
116.3
118.3
116.2
120.8
98.7
99.1
89.5
87.9
87.8
88.1
83.5
84.3
83.3
84.0
111.0
111.6
115.3
117.2
113.8
115.7
110.5
114.6
108.2
113.3
109.1
111.1
110.1
114.7
114.4
114.8
116.2
114.6
113.7
114.0
113.5
114.3
112.9
113.6
8.2
5.9
6.2
10.1
8.9
4.5
3.4
-18.5
-29.6
-28.8
-32.9
-32.5
2.7
2.9
2.7
2.6
2.7
2.7
2.7
2.8
2.9
2.8
2.8
2.9
-14.7
37.5
22.8
-14.6
42.5
27.8
-14.6
45.0
30.4
-10.2
43.7
33.5
-12.3
44.5
32.2
-15.4
45.5
30.1
-14.9
47.9
32.9
-22.4
54.9
32.5
-27.1
57.1
30.0
-26.1
57.2
31.1
-29.0
59.2
30.1
-29.8
59.9
30.1
22.9
32.5
55.4
20.6
36.9
57.4
20.8
37.4
58.2
20.4
38.0
58.4
21.2
40.1
61.3
19.9
38.3
58.2
18.4
39.1
57.4
3.9
48.1
52.0
-2.5
50.0
47.5
-2.7
50.5
47.8
-3.8
50.0
46.2
-2.7
49.1
46.4
64.0
62.3
70.8
70.5
69.2
68.9
65.7
67.6
63.0
65.9
64.9
64.7
65.0
67.3
70.0
68.2
73.0
69.2
71.0
69.1
71.4
70.0
71.9
70.4
9.5
9.0
11.4
12.5
10.9
10.8
8.3
7.5
9.3
10.9
11.1
13.3
12.1
9.7
11.8
11.3
13.5
14.5
22.2
20.1
17.5
15.6
13.6
13.8
267.0
272.4
302.4
298.2
313.1
304.7
321.7
314.8
324.7
320.2
324.8
322.6
323.4
324.6
324.0
330.3
324.3
330.6
327.2
335.3
331.9
337.2
334.4
335.6
MEMO
7 Domestically chartered banks net positions
with own foreign branches, not seasonally adjusted 5
8 Gross due from balances
Gross due to balances
9
10 Foreign-related institutions net positions with
directly related institutions, not seasonally adjusted 6
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 balances 8
Seasonally adjusted
Not seasonally adjusted
Time deposits, $100,000 or more 9
Seasonally adjusted
Not seasonally adjusted
1. Commercial banks are those in the SO states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks, New
York investment companies majority owned by foreign banks, and Edge Act corporations owned by domestically chartered and foreign banks.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. Includes averages of Wednesday data for domestically chartered banks and averages
of current and previous month-end data for foreign-related institutions.
3. Other borrowings are borrowings on any instrument, such as a promissory
note or due bill, given for the purpose of borrowing money for the banking business.
This includes borrowings from Federal Reserve Banks and from foreign banks,
term federal funds, overdrawn due from bank balances, loan RPs, and participations in pooled loans. Includes averages of daily figures for member banks and
averages of current and previous month-end data for foreign-related institutions.
4. Loans initially booked by the bank and later sold to affiliates that are still
held by affiliates. Averages of Wednesday data.
5. Averages of daily figures for member and nonmember banks.
6. Averages of daily data.
7. Based on daily average data reported by 122 large banks.
8. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
9. Averages of Wednesday figures.
NOTE. Beginning December 1981, shifts of foreign assets and liabilities from U.S.
banking offices to international banking facilities (IBFs) reduced levels for several
items as follows: lines 1 and 2, $22.4 billion; lines 3 and 4, $1.7 billion; line 5,
$20.7 billion; line 7, $3.1 billion; and line 10, $17.6 billion. For January 1982, levels
were reduced as follows: lines 1 and 2, $29.6 billion; lines 3 and 4, $2.4 billion;
line 5, $27.2 billion; line 7, $4.7 billion; and line 10, $22.4 billion.
For January 1982, levels were reduced as follows: lines 1 and 2, $29.6 billion;
lines 3 and 4, $2.4 billion; line 5, $27.2 billion; line 7, $4.7 billion; and line 10,
$22.4 billion.
For February 1982 the levels were reduced as follows: lines 1 and 2, $30.3 billion;
lines 3 and 4, $2.4 billion; line 5, $27.9 billion; line 7, $4.8 billion; and line 10,
$23.1 billion. For March the levels were reduced as follows: lines 1 and 2, $30.8
billion; lines 3 and 4, $2.4 billion; line 5, $28.4 billion; line 7, $4.8 billion and line
10, $23.6 billion. For April the levels were reduced as follows: lines 1 and 2, $31.3
billion; lines 3 and 4, $2.4 billion; line 5, $28.9 billion; line 7, $4.9 billion; and line
10, $23.9 billion.
Commercial Banks
1.25
ASSETS A N D LIABILITIES OF C O M M E R C I A L B A N K I N G INSTITUTIONS
Billions of dollars except for number of banks
All
Last-Wednesday-of-Month Series
1982
1981
Account
July
Aug.
Sept.
Oct.
Nov.
Dec.'
Jan.
1,214.1
881.2
298.3
582.9
113.1
219.8
1,221.3
888.7
301.2
587.5
111.3
221.4
1,242.5
906.2
308.5
597.8
109.4
226.9
1,239.9
902.9
308.5
594.3
110.0
227.1
1,249.4
912.8
312.6
600.2
106.7
229.9
1,267.4
926.4
320.3
606.0
109.8
231.3
156.8
19.5
27.0
52.7
168.4
20.0
25.4
61.4
190.2
19.2
26.8
68.9
149.8
19.7
25.3
49.3
162.8
18.3
26.1
52.0
173.1
22.0
28.0
54.5
57.6
61.6
75.4
55.5
66.4
68.6
r
Feb/
Mar.'
Apr.'
May
1,261.2
920.1
321.0
599.1
111.5
229.6
1,271.2
929.1
325.6
603.5
112.3
229.8
1,285.8
939.9
332.4
607.5
114.5
231.4
1,292.6
947.2
336.7
610.5
113.0
232.4
1,300.7
954.3
342.0
612.3
111.5
234.9
155.3
19.8
30.2
151.6
19.7
24.8
164.5
18.9
25.7
153.6
19.9
25.5
153.0
20.0
21.7
50.3
55.0
51.0
56.1
55.9
64.0
52.4
55.8
54.9
56.3
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 1
Loans and securities, excluding
interbank
Loans, excluding interbank
Commercial and industrial
4
Other
5 U.S. Treasury securities
6 Other securities
1
2
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 . . .
12
Other assets2
13
Total assets/total liabilities and capital...
14 Deposits
Demand
Savings
Time
15
16
17
18 Borrowings
19 Other liabilities
Residual (assets less liabilities)
20
162.8
168.3
184.5
175.5
194.4
211.2
197.0
201.9
219.3
206.6
209.8
1,533.7
1,558.0
1,617.2
1,565.2
1,606.7
1,651.8
1,613.5
1,624.7
1,669.5
1,652.9
1,663.5
1,160.0
333.7
219.2
607.2
1,181.3
342.5
217.2
621.6
1,224.4
378.0
216.7
629.7
1,177.1
324.0
214.0
639.1
1,206.0
339.2
217.9
648.9
1,240.3
363.9
222.4
654.0
1,205.8
322.3
223.0
660.5
1,213.7
316.7
222.5
674.4
1,250.8
338.3
229.9
682.6
1,231.0
315.5
226.6
688.9
1,244.0
315.4
227.6
701.0
160.4
86.3
127.0
164.4
89.8
122.5
176.9
91.4
124.4
174.5
89.3
124.3
179.3
95.2
126.2
190.2
91.7
129.6
191.9
89.7
126.1
191.0
92.5
127.5
196.4
94.4
128.0
201.1
92.4
128.4
195.0
93.9
130.6
7.2
14,719
6.4
14,720
15.3
14,720
13.9
14,740
5.6
14,743
13.6
14,744
16.7
14,690
17.1
14,702
10.9
14,709
16.6
14,710
7.1
14,722
1,297.9
960.8
350.3
610.4
115.3
221.8
1,306.7
969.8
354.2
615.6
113.5
223.4
1,334.3
993.8
366.3
627.5
111.6
228.9
1,324.7
983.6
361.7
621.9
111.9
229.2
1,335.5
994.7
365.5
629.2
108.8
232.0
1,330.0
984.5
360.8
623.7
112.5
233.0
1,321.6
975.8
360.3
615.5
114.5
231.4
1,331.5
984.4
364.6
619.7
115.5
231.6
1,345.8
995.1
372.4
622.7
117.6
233.1
1,350.7
1,000.6
374.7
625.8
116.1
234.1
1,358.5
1,007.5
379.3
628.3
114.3
236.6
187.8
19.5
28.0
81.4
58.9
205.2
20.1
26.6
95.7
62.9
234.5
19.2
28.1
110.7
76.5
165.4
19.7
26.5
62.5
56.6
179.3
18.3
27.5
66.0
67.4
188.1
22.0
29.3
67.1
69.6
170.0
19.8
31.3
62.7
56.1
165.8
19.7
26.1
63.0
57.1
178.8
18.9
26.9
68.0
65.0
168.1
19.9
26.8
64.6
56.8
167.7
20.0
23.0
67.3
57.3
MEMO:
U.S. Treasury note balances included in
borrowing
22 Number of banks
21
ALL COMMERCIAL BANKING
INSTITUTIONS3
Loans and securities, excluding
interbank
24 Loans, excluding interbank
Commercial and industrial
25
26
Other
27 U.S. Treasury securities
28 Other securities
23
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 . . .
34 Other assets2
35
Total assets/total liabilities and capital...
Deposits
Demand
38
Savings
39 Time
36
37
40 Borrowings
41 Other liabilities
42 Residual (assets less liabilities)
228.4
233.7
251.0
244.0
267.0
288.7
274.2
278.1
295.2
280.3
285.8
1,714.1
1,745.6
1,819.8
1,734.0
1,781.7
1,806.8
1,765.8
1,775.5
1,819.9
1,799.1
1,812.0
1,221.5
362.4
219.5
639.7
1,250.3
378.3
217.5
654.5
1,293.7
412.2
216.9
664.7
1,224.6
337.1
214.3
673.1
1,254.1
352.6
218.1
683.4
1,288.7
377.7
222.6
688.3
1,251.5
335.1
223.2
693.1
1,258.3
329.4
222.8
706.2
1,295.0
350.8
230.2
714.0
1,272.7
327.9
226.9
717.9
1,286.1
327.9
227.8
730.4
218.7
145.0
128.9
223.5
147.4
124.4
242.7
157.0
126.3
236.8
146.4
126.3
246.2
153.3
128.1
250.8
135.6
131.5
253.5
132.8
128.1
255.9
131.8
129.4
260.0
135.0
129.9
260.8
135.3
130.3
255.2
138.1
132.5
7.2
15,188
6.4
15,189
15.3
15,189
13.9
15,209
5.6
15,212
13.6
15,213
16.7
15,185
17.1
15.201
10.9
15,214
16.6
15,215
7.1
15,235
MEMO:
43 U.S. Treasury note balances included in
borrowing
44 Number of banks
1. Domestically chartered commercial banks include all commercial banks in the
United States except branches of foreign banks; included are member and nonmember banks, stock savings banks, and nondeposit trust companies.
2. Other assets include loans to U.S. commercial banks.
3. Commercial banking institutions include domestically chartered commercial
banks, branches and agencies of foreign banks, Edge Act and Agreement corporations, and New York State foreign investment corporations.
NOTE. Figures are partly estimated. They include all bank-premises subsidiaries
and other significant majority-owned domestic subsidiaries. Data for domestically
chartered commercial banks are for the last Wednesday of the month. Data for
other banking institutions are for the last day of the quarter until June 1981;
beginning July 1981, these data are estimates made on the last Wednesday of the
month based on a weekly reporting sample of foreign-related institutions and quarterend condition report data.
A18
1.26
DomesticNonfinancialStatistics • June 1982
ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $750 Million or More on
December 31, 1977, Assets and Liabilities
Millions of dollars, Wednesday figures
Account
Mar.31
1 Cash items in process of collection
2 Demand deposits due from banks in the United
States
3 All other cash and due from depository institutions ..
4 Total loans and securities
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Securities
U.S. Treasury securities
Trading account
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities
Trading account
Investment account
U.S. government agencies
States and political subdivisions, by maturity
One year or less
Over one year
Other bonds, corporate stocks and securities
Loans
19 Federal funds sold1
20
To commercial banks
21
To nonbank brokers and dealers in securities
22
To others
23 Other loans, gross
24
Commercial and industrial
25
Bankers acceptances and commercial paper
26
All other
27
U.S. addressees
28
Non-U.S. addressees
29
Real estate
30
To individuals for personal expenditures
To financial institutions
31
Commercial banks in the United States
32
Banks in foreign countries
33
Sales finance, personal finance companies, etc . . .
Other financial institutions
34
35
To nonbank brokers and dealers in securities
36
To others for purchasing and carrying securities 2 ...
37
To finance agricultural production
38
All other
39 LESS: Unearned income
40
Loan loss reserve
41 Other loans, net
42 Lease financing receivables
43 All other assets
44 Total assets
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
Deposits
Demand deposits
Mutual savings banks
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Time and savings deposits
Savings
Individuals and nonprofit organizations
Partnerships and corporations operated for profit
Domestic governmental units
All other
Time
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Foreign governments, official institutions, and
banks
Liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money3
Other liabilities and subordinated notes and
debentures
70 Total liabilities
71 Residual (total assets minus total liabilities)4
Apr. 7
Apr. 21
Apr. 28P
May 5 P
May. 12'
May 19 P
May 26 p
50,878
46,630
50,417
47,527
44,829
48,215
45,426
45,192
44,478
6,878
33,434
6,705
30,705
6,621
32,959
6,496
34,901
6,454
33,228
6,416
32,594
6,224
35,201
6,425
35,136
6,554
31,344
611,738
621,229
617,531
614,297
610,585
623,485
616,115
612,546
614,891
38,566
8,221
30,345
10,489
17,622
2,234
79,254
3,034
76,220
16,187
57,150
8,038
49,113
2,882
41,435
10,154
31,282
11,200
17,677
2,404
80,242
4,326
75,916
15,971
57,056
7,797
49,259
2,888
40,153
9,099
31,054
10,966
17,696
2,392
79,391
3,590
75,800
15,887
57,020
7,810
49,210
2,894
39,538
9,458
30,080
10,486
17,335
2,258
79,218
3,468
75,750
15,862
56,964
7,856
49,107
2,924
36,999
7,451
29,548
10,120
17,291
2,137
78,769
2,824
75,944
15,967
57,033
7,847
49,186
2,944
38,157
8,110
30,047
10,083
17,804
2,159
80,907
5,300
75,607
15,933
56,768
7,787
48,981
2,906
37,628
8,518
29,110
9,696
17,260
2,154
79,222
3,611
75,612
15,963
56,693
7,696
48,998
2,955
37,378
8,195
29,183
9,317
17,545
2,321
79,114
3,456
75,657
16,024
56,624
7,679
48,946
3,008
36,395
7,076
29,319
9,483
17,519
2,317
80,968
4,767
76,201
15,829
57,291
8,262
49,029
3,080
33,983
23,612
8,173
2,198
472,470
202,720
4,531
198,190
191,668
6,522
127,319
71,780
37,673
26,229
8,750
2,694
474,506
204,395
4,751
199,644
193,022
6,622
127,410
71,660
36,916
26,338
7,920
2,659
473,713
203,825
4,784
199,041
192,453
6,588
127,844
71,726
34,700
22,816
9,326
2,558
473,535
204,872
4,144
200,728
194,020
6,708
128,171
72,010
33,191
21,800
8,588
2,803
474,322
204,731
4,421
200,310
193,550
6,760
128,538
72,100
38,948
27,661
8,363
2,925
478,209
207,842
4,453
203,389
196,854
6,535
128,506
72,090
34,782
24,376
7,477
2,928
477,273
207,426
4,406
203,021
196,353
6,668
128,709
71,771
31,752
22,030
7,133
2,588
477,121
207,485
4,941
202,544
195,917
6,627
128,907
71,780
31,641
21,256
7,625
2,760
478,717
208,256
5,131
203,125
196,391
6,734
128,959
71,777
6,243
7,656
11,750
16,232
5,220
2,562
5,934
15,052
5,800
6,737
459,934
11,135
113,265
6,694
7,187
11,473
16,364
6,785
2,574
5,938
14,025
5,860
6,768
461,878
11,123
112,802
6,243
7,567
11,627
16,250
5,905
2,592
5,935
14,198
5,876
6,766
461,071
11,109
108,474
6,306
6,881
11,112
16,223
5,581
2,545
6,019
13,814
5,891
6,803
460,841
11,080
109,529
6,195
7,166
11,762
16,334
4,899
2,585
6,004
14,006
5,889
6,807
461,626
11,074
108,919
6,027
7,225
11,311
16,370
5,256
2,592
6,108
14,882
5,843
6,892
465,473
11,088
112,974
6,038
7,245
11,181
16,518
5,797
2,666
6,127
13,794
5,868
6,922
464,482
11,078
113,309
5,996
7,391
10,893
16,396
5,087
2,602
6,185
14,399
5,896
6,923
464,302
11,084
112,072
6,132
6,649
11,222
16,225
6,292
2,592
6,222
14,390
5,901
6,929
465,887
11,083
109,263
827,328
829,195
827,112
823,830
815,089
834,772
827,353
822,456
817,613
172,924
679
131,882
5,133
1,118
19,712
6,391
1,040
6,968
372,465
80,446
76,968
2,885
574
19
292,018
255,503
21,045
399
10,720
171,473
653
130,178
4,582
2,022
19,720
6,111
1,036
7,171
373,580
82,458
78,983
2,873
585
17
291,122
254,843
20,558
440
10,854
170,656
591
130,531
4,672
2,667
18,235
6,152
925
6,882
372,917
82,225
78,842
2,831
535
18
290,692
254,070
20,821
438
10,909
164,172
539
125,500
4,420
2,182
17,569
6,175
1,018
6,768
373,739
81,355
78,003
2,798
538
16
292,384
255,514
21,006
544
10,946
157,940
456
120,484
4,640
2,958
16,143
6,316
883
6,058
373,733
78,902
75,539
2,807
539
16
294,831
257,536
21,378
562
11,023
166,522
583
124,032
5,386
3,577
18,514
6,768
1,085
6,577
374,624
80,043
76,654
2,807
564
16
294,582
257,534
21,285
560
10,821
160,003
553
122,148
4,189
2,056
17,102
6,590
1,013
6,352
375,802
79,562
76,066
2,812
669
15
296,239
258,670
21,446
528
11,063
162,126
536
121,654
4,324
2,980
17,971
6,755
933
6,972
376,728
79,590
76,182
2,776
608
24
297,139
259,904
21,349
512
10,789
158,255
515
119,970
5,000
1,848
17,725
6,365
1,043
5,788
379,595
79,297
75,784
2,796
694
22
300,298
262,526
21,650
538
10,948
4,351
4,427
4,454
4,374
4,332
4,382
4,531
4,585
4,636
1,421
8,080
142,150
1,575
2,782
151,712
3,664
2,489
150,449
2,135
12,034
143,783
4,408
12,432
138,479
356
12,125
151,922
858
11,214
150,598
175
5,150
148,351
464
4,687
144,730
74,809
72,439
71,282
72,516
72,797
73,440
72,892
74,214
74,035
771,848
773,562
771,458
768,379
759,788
778,990
771,368
766,744
761,766
55,480
55,632
55,654
55,451
55,301
55,781
55,985
55,711
55,847
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 Dec. 31, 1977, see table 1.13.
4. Not a measure of equity capital for use in capital adequacy analysis or for
FRASER
other analytic uses.
Digitized for
Apr. 14
NOTE. Beginning in the week ending Dec. 9, 1981, shifts of assets and liabilities
to international banking facilities (IBFs) reduced the amounts reported in some
items, especially in loans to foreigners and to a lesser extent in time deposits. Based
on preliminary reports, the large weekly reporting banks shifted $4.7 billion of
assets to their IBFs in the five weeks ending Jan. 13, 1982. Domestic offices net
positions with IBFs are now included in net due from or net due to related institutions. More detail will be available later.
Weekly Reporting Banks
1.27
A19
LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1 Billion or More on
December 31, 1977, Assets and Liabilities
Millions of dollars, W e d n e s d a y figures
1982
Account
Mar. 31
1 Cash items in process of collection
2 Demand deposits due from banks in the United S t a t e s . . . .
3 All other cash and due from depository institutions
4 Total loans and securities
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Securities
U.S. Treasury securities
Trading account
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities
Trading account
Investment account
U.S. government agencies
States and political subdivision, by maturity
One year or less
Over one year
Other bonds, corporate stocks and securities
Apr. 7
Apr. 14
Apr. 21
Apr. 2SP
May 5p
May 12P
May 19P
May 26?
48,016
6,194
30,751
43,798
6,082
28,659
47,316
6,042
30,505
44,445
5,862
32,387
41,721
5,852
30,617
45,342
5,763
30,141
42,782
5,616
32,793
42,580
5,807
32,490
41,821
5,862
28,720
572,571
581,215
578,237
574,968
571,939
583,854
576,792
573,682
576,225
35,462
8,075
27,386
9,406
16,042
1,939
72,854
2,941
69,913
14,991
52,217
7,230
44,987
2,704
38,313
10,000
28,313
10,131
16,072
2,110
73,867
4,218
69,649
14,783
52,158
7,035
45,124
2,708
37,115
8,978
28,137
9,925
16,116
2,096
73,054
3,504
69,550
14,698
52,139
7,047
45,091
2,713
36,549
9,358
27,191
9,461
15,768
1,963
72,863
3,344
69,519
14,670
52,111
7,127
44,984
2,738
34,024
7,367
26,657
9,095
15,705
1,856
72,436
2,723
69,713
14,789
52,167
7,121
45,046
2,757
35,205
7,995
27,210
9,072
16,252
1,886
74,553
5,166
69,387
14,751
51,917
7,001
44,917
2,719
34,637
8,362
26,276
8,684
15,711
1,880
72,885
3,504
69,381
14,779
51,831
6,904
44,927
2,770
34,438
8,094
26,344
8,340
15,956
2,048
72,731
3,333
69,398
14,824
51,753
6,883
44,870
2,821
33,470
6,991
26,479
8,531
15,906
2,042
74,576
4,650
69,926
14,637
52,396
7,450
44,946
2,893
Loans
19 Federal funds sold 1
20
To commercial banks
21
To nonbank brokers and dealers in securities
22
To others
23 Other loans, gross
24
Commercial and industrial
25
Bankers acceptances and commercial paper
26
All other
27
U.S. addressees
Non-U.S. addressees
28
29
Real estate
30
To individuals for personal expenditures
To financial institutions
31
Commercial banks in the United States
32
Banks in foreign countries
33
Sales finance, personal finance companies, etc
34
Other financial institutions
To nonbank brokers and dealers in securities
35
36
To others for purchasing and carrying securities 2
37
To finance agricultural production
38
All other
39 LESS; Unearned income
40
Loan loss reserve
41 Other loans, net
42 Lease financing receivables
43 All other assets
29,882
20,208
7,578
2,096
445,922
192,580
4,358
188,221
181,779
6,442
120,286
64,422
32,761
22,192
7,939
2,630
447,882
194,134
4,586
189,548
183,014
6,534
120,418
64,310
32,670
22,817
7,278
2,575
447,017
193,556
4,620
188,936
182,444
6,492
120,774
64,398
30,372
19,182
8,728
2,462
446,852
194,620
3,987
190,634
184,022
6,612
121,061
64,692
29,622
18,963
7,969
2,690
447,531
194,436
4,276
190,160
183,496
6,663
121,414
64,765
34,511
23,869
7.812
2,830
451,298
197,424
4,316
193,108
186,669
6,439
121,383
64,706
30,601
20,987
6,780
2,834
450,436
197,080
4,267
192,814
186,243
6,570
121,563
64,398
28,064
19,075
6,495
2,494
450,242
197,120
4,800
192,320
185,795
6,525
121,749
64,416
28,221
18,548
7,015
2,658
451,762
197,821
5,002
192,819
186,195
6,624
121,799
64,378
5,997
7,575
11,567
15,837
5,177
2,334
5,794
14,355
5,169
6,379
434,374
10,796
109,540
6,457
7,102
11,276
15,965
6,739
2,350
5,792
13,339
5,202
6,406
436,274
10,785
109,011
5,989
7,493
11,431
15,854
5,863
2,373
5,790
13,496
5,216
6,404
435,398
10,771
104,637
6,052
6,820
10,923
15,821
5,534
2,330
5,871
13,127
5,228
6,439
435,184
10,741
105,734
5,989
7,105
11,565
15,938
4,851
2,369
5,855
13,244
5,229
6,444
435,857
10,736
105,115
5,835
7,141
11,123
15,973
5,205
2,374
5,956
14,178
5,189
6,524
439,585
10,748
109,181
5,846
7,169
10,998
16,118
5,739
2,452
5,969
13,103
5,213
6,554
438,669
10,739
109,512
5,834
7,307
10,713
15,992
5,038
2,390
6,025
13,658
5,238
6,554
438,449
10,740
108,419
5,968
6,573
11,041
15,817
6,240
2,376
6,060
13,690
5,245
6,560
439,957
10,739
105,518
44 Total assets
777,870
779,551
777,509
774,138
765,981
785,029
778,235
773,720
768,885
160,948
657
122,563
4,546
978
18,162
6,324
1,036
6,680
349,527
74,194
71,022
2,655
497
19
275,334
240,912
19,323
343
10,404
4,351
159,392
625
120,881
3,919
1,755
18,253
6,053
1,031
6,874
350,476
76,099
72,886
2,652
543
17
274,377
240,165
18,872
380
10,533
4,427
158,362
576
121,163
4,006
2,216
16,818
6,098
921
6,563
349,783
75,861
72,739
2,605
499
18
273,922
239,378
19,127
380
10,583
4,454
152,125
146,116
154,614
526
116,316
3,848
1,626
16,185
6,112
1,013
6,499
350,587
75,063
71,973
2,572
503
275,524
240,714
19,328
488
10,620
4,374
445
111,611
4,033
2,270
14,836
6,253
882
5,785
350,740
72.809
69,702
2,588
503
16
277,931
242,722
19,677
506
10,693
4,332
558
114,990
4,732
3,248
17,023
6,693
1,083
6,288
351,538
73,857
70,732
2,587
521
16
277,681
242,665
19,625
508
10,500
4,382
148,817
534
113,283
3,729
1,892
15,755
6,516
1,008
6,099
352,509
73,420
70,185
2,588
632
15
279,089
243,609
19,726
477
10,746
4,531
150,902
521
112,996
3,802
2,701
16,573
6,677
926
6,706
353,523
73,463
70,306
2,559
574
24
280,060
244,890
19,637
461
10,487
4,585
147,023
500
111,093
4,500
1,693
16,353
6,307
1,034
5,543
356,171
73,207
69,948
2,576
662
22
282,964
247,286
19,914
483
10,644
4,636
1,299
7,428
133,929
72,727
1,552
2,574
142,946
70,482
3,634
2,314
142,010
69,257
2,037
11,154
135,694
70,599
4,244
11,566
130,722
70,848
331
11,251
143,735
71,323
808
10,411
142,408
70,847
130
4,738
140,124
72,131
433
4,348
136,589
72,036
725,858
727,422
725,360
722,196
714,236
732,792
725,801
721,547
716,600
52,011
52,129
52,149
51,942
51,744
52,237
52,434
52,173
52,285
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
Deposits
Demand deposits
Mutual savings banks
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Time and savings deposits
Savings
Individuals and nonprofit organizations
Partnerships and corporations operated for profit . . . .
Domestic governmental units
All other
Time
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Foreign governments, official institutions, and banks .
Liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money 3
Other liabilities and subordinated notes and debentures
70 Total liabilities
71 Residual (total assets minus total liabilities) 4
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 repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
16
4. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
A20
1.28
DomesticNonfinancialStatistics • June 1982
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures
1982
Mar. 31
1 Cash items in process of collection
2 Demand deposits due from banks in the United
States
kB All other cash and due from depository institutions
4 Total loans and securities'
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Securities
U.S. Treasury securities2
Trading account2
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities2
Trading account2
Investment account
U.S. government agencies
States and political subdivision, by maturity ..
One year or less
Over one year
Other bonds, corporate stocks and securities..
Loans
19 Federal funds sold3
20 To commercial banks
21 To nonbank brokers and dealers in securities . . .
22 To others
23 Other loans, gross
24 Commercial and industrial
25
Bankers acceptances and commercial paper...
26
All other
27
U.S. addressees
28
Non-U.S. addressees
29 Real estate
30 To individuals for personal expenditures
To financial institutions
31
Commercial banks in the United States
32
Banks in foreign countries
33
Sales finance, personal finance companies, etc.
34
Other financial institutions
35 To nonbank brokers and dealers in securities . . .
36 To others for purchasing and carrying securities4
37 To finance agricultural production
38 All other
39 LESS: Unearned income
40
Loan loss reserve
41 Other loans, net
42 Lease financing receivables
43 All other assets5
44 Total assets
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
Deposits
Demand deposits
Mutual savings banks
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Banks in foreign countries
Foreign governments and official institutions....
Certified and officers' checks
Time and savings deposits
Savings
Individuals and nonprofit organizations
Partnerships and corporations operated for
profit
Domestic governmental units
All other
Time
Individuals, partnerships, and corporations . . .
States and political subdivisions
U.S. government
Commercial banks in the United States
Foreign governments, official institutions, and
banks
Liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money6
OtheT liabilities and subordinated notes and
debentures
70 Total liabilities
71 Residual (total assets minus total liabilities)7
1.
2.
3.
4.
Apr. 14
Apr. 21
Apr.
28p
May
5P
May
12 P May 19?
May
26p
16,353
13,643
14,967
14,511
13,450
13,276
12,289
13,683
13,600
1,155
6,319
879
6,798
992
7,944
1,144
7,139
1,248
5,439
1,195
7,511
1,081
8,290
1,147
6,928
1,276
4,282
135,537
134,814
135,822
132,576
133,920
137,508
134,608
134,254
135,964
7,052
1,768
4,735
549
7,369
1,990
4,677
703
7,142
1,728
4,722
693
6,414
1,416
4,408
590
6,335
1,628
4,238
468
6,812
1,629
4,731
453
6,030
1,135
4,437
458
6,471
1,129
4,680
662
6,480
1,141
4,649
690
14,583
2,152
11,573
2,031
9,542
858
14,574
2,122
11,582
2,044
9,539
869
14,597
2,107
11,624
2,056
9,569
865
14,534
2,070
11,607
2,075
9,532
856
14,594
2,092
11,646
2,105
9,540
856
14,469
2,036
11,607
2,063
9,543
826
14,463
2,036
11,572
2,027
9,545
855
14,499
2,086
11,538
1,984
9,554
875
15,123
2,062
12,118
2,561
9,556
944
8,026
4,038
3,224
765
109,487
56,560
1,598
54,962
53,412
1,550
17,814
11,106
6,773
3,068
2,906
798
109,754
57,216
1,662
55,555
53,870
1,685
17,793
11,112
7,894
4,246
2,682
966
109,863
56,948
1,573
55,375
53,751
1,624
17,793
11,124
7,051
2,482
3,536
1,033
108,285
57,468
1,465
56,002
54,403
1,599
17,848
11,182
8,014
3,882
3,036
1,097
108,674
57,290
1,480
55,810
54,257
1,553
18,033
11,184
9,250
4,789
3,157
1,304
110,672
58,957
1,478
57,478
56,091
1,388
17,961
11,210
7,378
3,465
2,624
1,289
110,460
58,590
1,468
57,122
55,691
1,431
18,017
11,194
7,210
3,722
2,396
1,092
109,808
58,151
1,546
56,605
55,104
1,500
18,072
11,187
7,488
3,685
2,572
1,232
110,616
58,677
1,770
56,908
55,474
1,434
18,129
11,182
2,103
3,157
5,316
4,582
3,261
599
451
4,537
1,453
2,159
105,875
2,308
44,977
2,203
2,779
4,984
4,639
4,187
617
432
3,790
1,479
2,176
106,099
2,305
48,118
1,795
3,096
5,197
4,727
4,168
621
427
3,964
1,484
2,190
106,189
2,302
44,721
1,875
2,540
4,733
4,704
3,466
602
431
3,435
1,501
2,208
104,576
2,302
45,940
1,813
2,966
5,293
4,777
2,810
620
403
3,485
1,491
2,207
104,976
2,302
44,584
1,857
2,994
4,830
4,789
3,214
637
400
3,822
1,466
2,229
106,977
2,282
48,193
1,718
3,089
4,818
4,887
3,564
697
405
3,480
1,473
2,250
106,736
2,278
46,888
1,637
3,296
4,561
4,818
3,265
632
414
3,775
1,495
2,239
106,074
2,278
46,764
1,678
2,639
4,731
4,729
3,892
642
404
3,912
1,507
2,238
106,872
2,276
43,812
206,649
206,558
206,748
203,614
200,943
209,965
205,434
205,054
201,210
47,751
309
33,336
682
208
4,671
4,795
812
2,938
66,584
9,579
9,253
46,123
275
31,746
399
472
4,691
4,624
799
3,117
67,705
9,848
9,495
44,481
285
30,870
425
654
4,074
4,615
653
2,904
67,293
9,889
9,547
42,353
250
29,269
408
521
3,440
4,605
748
3,110
67,828
9,829
9,491
40,714
208
28,438
400
789
2,948
4,739
617
2,575
68,213
9,462
9,118
43,568
238
29,253
684
876
3,676
5,119
853
2,868
67,873
9,536
9,195
40,603
259
27,348
372
613
3,408
5,026
699
2,878
68,728
9,553
9,138
43,774
267
29,150
409
728
3,986
5,085
697
3,453
69,467
9,614
9,225
41,772
247
27,750
966
426
4,238
4,788
814
2,542
68,498
9,679
9,249
225
99
2
57,005
48,258
2,295
92
4,196
233
119
1
57,857
49,033
2,219
116
4,301
230
110
2
57,404
48,607
2,235
116
4,258
225
111
2
57,999
49,119
2,232
117
4,315
228
114
2
58,751
49,654
2,381
110
4,456
230
110
2
58,337
49,407
2,342
114
4,279
229
183
2
59,175
50,000
2,331
114
4,451
227
160
2
59,854
50,857
2,273
104
4,324
230
198
2
58,819
49,764
2,336
124
4,300
2,164
2,188
2,188
2,217
2,151
2,195
2,280
2,295
2,294
300
2,224
42,002
488
688
45,798
2,350
792
46.663
1,030
3,340
43,166
1,610
3,674
41,154
3,396
49,076
675
3,200
46,900
1,364
44,685
365
1,375
43,328
30,217
28,205
27,631
28,533
28,303
28,558
27,718
28,226
28,405
189,078
189,007
189,210
186,251
183,667
192,472
187,824
187,518
183,744
17,571
17,551
17,538
17,363
17,276
17,493
17,610
17,536
17,466
Excludes trading account securities.
Not available due to confidentiality.
Includes securities purchased under agreements to resell.
Other than financial institutions and brokers and dealers.
Apr. 7
5. Includes trading account securities.
6. Includes federal funds purchased and securities sold under agreements to
repurchase.
7. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
Weekly Reporting Banks
1.29
LARGE WEEKLY REPORTING COMMERCIAL BANKS
All
Balance Sheet Memoranda
Millions of dollars, Wednesday figures
1982
Account
Mar. 31
Apr. 7
Apr. 14
Apr. 21
Apr. 28 p
May 5 p
May 12 P
May 19 p
May 26 P
BANKS WITH ASSETS OF $ 7 5 0 MILLION OR MORE
Total loans (gross) and securities adjusted 1
1
Total loans (gross) adjusted
Demand deposits adjusted 2
594,420
476,599
101,216
600,932
479,255
103,101
597,592
478,048
99,337
597,869
479,114
96,894
595,285
479,517
94,010
602,533
483,469
96,216
598,491
481,640
95,419
597,339
480,848
95,983
600,332
482,970
94,204
186,381
133,677
52,704
184,933
132,007
52,926
184,007
131,093
52,914
185,113
132,176
52,937
187,107
133,651
53,456
186,137
132,496
53,641
187,475
133,617
53,857
187,982
133,886
54,096
190,903
136,064
54,839
2,858
2,211
646
2,860
2,260
601
2,835
2,233
602
2,877
2,260
617
2,881
2,276
605
2,843
2,252
591
2,793
2,236
557
2,798
2,265
533
2,693
2,148
545
10 Total loans (gross) and securities adjusted 1
11 Total loans (gross) adjusted 1
12 Demand deposits adjusted 2
557,914
449,599
93,791
564,175
451,994
95,585
561,051
450,881
92,011
561,403
451,991
89,870
558,660
452,200
87,288
565,864
456,105
89,001
561,726
454,204
88,387
560,566
453,397
89,047
563,514
455,467
87,156
13 Time deposits in accounts of $100,000 or more
14 Negotiable CDs
Other time deposits
177,986
128,636
49,350
176,576
126,954
49,622
175,672
126,063
49,610
176,762
127,120
49,642
178,752
128,634
50,119
177,826
127,500
50,327
178,958
128,548
50,410
179,565
128,874
50,690
182,254
130,912
51,342
2,781
2,151
630
2,776
2,192
584
2,749
2,164
586
2,781
2,181
600
2,784
2,196
588
2,752
2,176
575
2,695
2,154
541
2,701
2,185
516
2,598
2,073
525
133,008
111,372
26,519
133,199
111,256
27,318
133,455
111,715
24,786
131,927
110,979
23,880
131,922
110,993
23,526
134,558
113,277
25,740
133,147
112,654
24,293
132,629
111,659
25,378
134,345
112,742
23,508
43,718
32,868
10,850
44,388
33,515
10,872
43,926
33,049
10,876
44,405
33,627
10,778
45,138
34,181
10,957
44,502
33,494
11,008
45,400
34,466
10,933
46,028
35,162
10,866
45,029
34,093
10,936
1
2
3
4 Time deposits in accounts of $100,000 or more
Negotiable CDs
5
6 Other time deposits
7
8
9
Loans sold outright to affiliates3
Commercial and industrial
Other
BANKS WITH ASSETS OF $1 BILLION OR MORE
15
16 Loans sold outright to affiliates3
17 Commercial and industrial
18 Other
BANKS IN NEW YORK CITY
19 Total loans (gross) and securities adjusted 14
1
2 0 Total loans (gross) adjusted
2
21 Demand deposits adjusted
22
23
24
Time deposits in accounts of $100,000 or more
Negotiable CDs
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, nonconsolidated 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
1.291
DomesticNonfinancialStatistics • June 1982
L A R G E WEEKLY REPORTING BRANCHES A N D AGENCIES OF FOREIGN BANKS
Millions of dollars, Wednesday figures
Assets and Liabilities
1982
Apr. 7
1
2
3
4
5
6
7
8
9
10
Apr. 14
Apr. 21
Apr. 28p
May 5 '
Cash and due from depository institutions
Total loans and securities
U.S. Treasury securities
Other securities
Federal funds sold 1
To commercial banks in U.S
To others
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial
paper
All other
U.S. addressees
Non-U.S. addressees
To financial institutions
Commercial banks in U.S
Banks in foreign countries
Nonbank financial institutions
For purchasing and carrying securities ..
All other
Other assets (claims on nonrelated
parties)
Net due from related institutions
Total assets
6,061
48,374
2,526
785
3,904
3,623
281
41,159
20,164
5,880
47,849
2,316
765
3,886
3,571
314
40,882
19,676
5,879
46,271
2,295
759
3,265
2,960
305
39,951
19,678
6,074
44,749
2,298
750
2,335
2,103
232
39,365
19,550
5,813
44,967
2,522
766
2,936
2,714
221
38,742
18,884
5,560
44,669
2,484
766
3,177
3,645
16,518
14,333
2,185
16,620
13,306
2,786
529
489
3,886
3,619
16,057
13,974
2,083
16,580
13,220
2,824
536
720
3,906
3,727
15,950
13,824
516
261
3,838
3,619
15,932
13,759
2,173
15,666
12,428
2,702
536
306
3,842
3,372
15,511
13,392
2,119
15,522
12,351
2,645
526
310
4,028
12,744
12,354
79,534
12,452
12,968
79,149
12,581
12,406
77,137
12,778
12,474
76,075
23 Deposits or credit balances 2
24
Credit balances
25
Demand deposits
26
Individuals, partnerships, and
corporations
27
Other
28
Total time and savings
29
Individuals, partnerships, and
corporations
30
Other
31 Borrowings 3
32
Federal funds purchased 4
33
From commercial banks in U.S
34
From others
35
Other liabilities for borrowed money . . .
36
To commercial banks in U.S
37
To others
38 Other liabilities to nonrelated parties
39 Net due to related institutions
40 Total liabilities
23,378
247
2,053
23,576
248
2,086
23,885
209
2,279
22,181
799
1,254
21,077
932
1,154
21,241
17,743
3,335
33,092
8.460
7,320
1,139
24,632
22,027
2,606
12,968
10,096
79,534
17,689
3,553
32,472
8,257
7,242
1.015
24,215
21,769
2,446
12,733
10,368
79,149
31,446
28,135
31,058
27,977
11
12
13
14
15
16
17
18
19
20
21
22
May 12^
May 19p
5,902
43,871
2,497
769
2,317
2,120
197
38,288
18,498
5,865
43,710
2,453
757
2,777
2,596
180
37,723
18,701
3,419
15,387
13,221
2,166
15,152
12,021
2,593
537
432
3,852
3,311
15,187
12,991
2,196
15,286
2,610
510
523
3,980
3,298
15,404
13,304
2,099
14,895
11,839
2,512
543
214
3,913
12,639
11,972
75,392
12,367
12,449
75,046
12,807
11,871
74,451
12,500
12,093
74,168
261
2,072
21,908
244
2,248
22,072
224
2,001
21,575
273
1,961
20,658
225
1,846
1,023
1,256
21,397
932
1,140
19,848
994
1,253
19,416
1,132
19,847
746
1,215
19,341
760
1,086
18,586
17,822
3,575
31,349
7,523
6,442
16.414
3,433
31,343
7,588
6,306
23,826
21,317
2,509
12,782
9,121
77,137
23,755
21,312
2,443
13,182
9,369
76,075
15,848
3,568
30,253
6,932
5,755
1,176
23,321
20,994
2,327
13,087
10,144
75,392
16,496
3,351
30,579
8,054
6,837
1,217
22,525
20,267
2,258
12,947
9,448
75,046
16,126
3,214
30,235
7,668
6,676
992
22,567
20,283
2,283
13,347
9,294
74,451
15,473
3,113
30,634
8,193
6,711
1,482
22,441
20,124
2,317
12,987
9,888
74,168
30,263
27,209
30,218
27,169
29,902
26,613
29,767
26,517
29,585
26,319
29,274
26,064
2,126
16,175
13,047
2,612
1,081
1,282
2,881
296
38,242
18,806
12,166
MEMO
41 Total loans (gross) and securities
adjusted 5
42 Total loans (gross) adjusted 5
1.
2.
3.
4.
5.
Includes securities purchased under agreements to resell.
Balances due to other than directly related institutions.
Borrowings from other than directly related institutions.
Includes securities sold under agreements to repurchase.
Excludes loans and federal funds transactions with commercial banks in U.S.
NOTE. Beginning in the week ending Dec. 9, 1981, shifts of assets and liabilities
to international banking facilities (IBFs) reduced the amounts reported in some
items, especially in loans to foreigners and to a lesser extent in time deposits. Based
on preliminary reports, the large weekly reporting branches and agencies shifted
$22.2 billion of assets to their IBFs in the six weeks ending Jan. 13, 1982. Domestic
offices net positions with IBFs are now included in net due from or net due to
related institutions. More detail will be available later.
Weekly Reporting Banks
1.30
LARGE WEEKLY REPORTING COMMERCIAL BANKS
Millions of dollars
Domestic Classified Commercial and Industrial Loans
Net change during
Outstanding
Industry classification
1981
1982
Jan. 27
Feb. 24
Mar. 31
All
Apr. 28
May 2 6 P
Q4
1982
Q1
Mar.
Apr.
MayP
1
Durable goods manufacturing
27,158
28,314
28,638
29,085
28,842
795
1,720
324
447
-243
2
3
Nondurable goods manufacturing
Food, liquor, and tobacco
21,628
4,160
21,948
4,419
23,165
4,553
23,584
4,814
24,002
4,784
-1,613
-229
1,367
350
1,217
134
420
261
418
-30
4
5
6
7
Textiles, apparel, and leather
Petroleum refining
Chemicals and rubber
Other nondurable goods
4,172
4,587
4,486
4,223
4,427
4,142
4,746
4,214
4,535
4,449
5,138
4,490
4,654
4,417
5,187
4,511
4,722
4,682
5,232
4,581
-896
911
-1,408
10
353
-418
795
287
108
306
392
276
119
-31
49
21
68
265
45
70
Mining (including crude petroleum and natural gas)
24,552
25,804
25,851
26,792
28,171
3,082
1,486
47
941
1,379
9
10
11
12
Trade
Commodity dealers
Other wholesale
Retail
28,135
2,297
13,252
12,586
27,793
1,802
13,172
12,819
28,887
2,322
13,584
12,981
28,667
1,858
13,557
13,252
28,704
1,873
13,489
13,342
1,010
635
313
62
813
30
617
166
1,094
520
412
163
-220
-464
-27
270
37
15
-68
90
13
14
15
16
Transportation, communication,
and other public utilities
Transportation
Communication
Other public utilities
23,418
8,739
4,026
10,652
23,381
8,890
4,076
10,415
23,652
9,163
4,242
10,247
23,682
9,100
4,470
10,111
23,703
9,070
4,559
10,074
1,299
134
419
745
472
550
287
-365
271
273
166
-168
29
-63
228
-136
22
-30
89
-37
17
18
19
Construction
Services
All other 1
7,060
26,738
17,178
7,202
27,270
16,883
7,257
27,151
17,178
7,413
27,344
16,929
7,690
27,973
17,110
-53
1,144
1,046
18
563
103
55
-119
294
156
193
-248
277
629
180
175,868
178,596
181,779
183,496
186,195
6,710
6,542
3,182
1,718
2,699
85,201
87,829
87,238
88,277
89,282
-1,019
1,952
-591
1,039
1,004
8
20
Total domestic loans
21
MEMO: Term loans (original maturity more
than 1 year) included in domestic loans .
1. Includes commercial and industrial loans at a few banks with assets of $1
billion or more that do not classify their loans.
NOTE. New series. The 134 large weekly reporting commercial banks with domestic assets of $1 billion or more as of Dec. 31, 1977, are included in this series.
The revised series is on a last-Wednesday-of-the-month basis. Partly estimated
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.
A24
1.31
DomesticNonfinancialStatistics • June 1982
G R O S S D E M A N D D E P O S I T S of Individuals, Partnerships, and Corporations1
Billions of dollars, estimated daily-average balances
Commercial banks
Type of holder
1977
Dec.
1978
Dec.
1980
19792
Dec.
June
Sept.
1981
Dec.
Mar.
3
June 4
Sept.
Dec.
1 All holders—Individuals, partnerships, and
corporations
274.4
294.6
302.2
288.6
302.0
315.S
280.8
277.5
288.9
2
3
4
5
6
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
27.7
145.3
97.9
3.3
14.4
29.6
151.9
101.8
3.2
15.5
29.8
162.3
102.4
3.3
17.2
30.8
144.3
86.7
3.4
15.6
28.2
148.6
82.1
3.1
15.5
28.0
154.8
86.6
2.9
16.7
Financial business
Nonfinancial business
Consumer
Foreign
Other
n a.
Weekly reporting banks
1977
Dec.
1978
Dec.
1980
19795
Dec.
June
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
Dec.
Mar. 3
June 4
Sept.
Dec.
139.1
147.0
139.3
133.9
140.6
147.4
133.2
131.3
137.5
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
20.2
69.2
33.9
3.1
7.5
21.2
72.4
36.0
3.1
7.9
21.8
78.3
35.6
3.1
8.6
21.9
69.8
30.6
3.2
7.7
20.7
71.2
28.7
2.9
7.9
21.0
75.2
30.4
2.8
8.0
1. Figures include cash items in process of collection. Estimates of gross deposits
are based on reports supplied by a sample of commercial banks. Types of depositors
in each category are described in the June 1971 BULLETIN, p. 466.
2. Beginning with the March 1979 survey, the demand deposit ownership survey
sample was reduced to 232 banks from 349 banks, and the estimation procedure
was modified slightly. To aid in comparing estimates based on the old and new
reporting sample, the following estimates in billions of dollars for December 1978
have been constructed using the new smaller sample; financial business, 27.0;
nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and other, 15.1.
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.
Sept.
1981
n.a.
1
4. Demand deposit ownership survey estimates for June 1981 are not yet available
due to unresolved reporting errors.
5. 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 "Announcements," p. 408 in the
May 1978 BULLETIN. Beginning in March 1979, demand deposit ownership estimates for these large banks are constructed quarterly on the basis of 97 sample
banks and are not comparable with earlier data. The following estimates in billions
of dollars for December 1978 have been constructed for the new large-bank panel;
financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8; foreign, 2.5;
other, 6.8.
Deposits and Commercial Paper
1.32
A25
COMMERCIAL PAPER A N D BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1982
1981
Instrument
1977
1978
19791
1980
Dec.
Dec.
Dec.
Dec.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Commercial paper (seasonally adjusted)
1 AI1 issuers
2
3
4
5
6
Financial companies2
Dealer-placed paper3
Total
Bank-related
Directly placed paperA
Total
Bank-related
Nonfinancial companies5
65,051
83,438
112,803
124,524
164,026
164,958
165,508
165,088
164,738
166,341
171,436
8,796
2,132
12,181
3,521
17,359
2,784
19,790
3,561
30,081
5,640
30,024
5,735
30,188
6,045
29,321
6,526
30,069
6,865
31,578
7,429
32,846
8,273
40,574
7,102
15,681
51,647
12,314
19,610
64,757
17,598
30,687
67,854
22,382
36,880
82,822
25,397
51,123
82,291
26,225
52,643
81,660
26,914
53,660
80,331
28,567
55,436
79,142
27,207
55,527
77,933
27,190
56,830
81,157
29,005
57,433
Bankers dollar acceptances (not seasonally adjusted)
7
Total
Holder
8 Accepting banks
9 Own bills
10
Bills bought
Federal Reserve Banks
11
Own account
Foreign correspondents
12
13 Others
14
15
16
Basis
Imports into United States
Exports from United States
All other
25,450
33,700
45,321
54,744
66,072
68,749
69,226
70,088
70,468
70,619
10,434
8,915
1,519
8,579
7,653
927
9,865
8,327
1,538
10,564
8,963
1,601
10,511
9,522
989
11,253
10,268
985
10,857
9,743
1,115
10,227
9,095
1,132
11,953
10,928
1,025
12,964
11,139
1,825
954
362
13,700
1
664
24,456
704
1,382
33,370
776
1,791
41,614
0
1,428
54,133
0
1,408
56,089
0
1,442
56,926
0
1,427
58,434
0
1,530
56,985
0
1,379
57,276
6,378
5,863
13,209
8,574
7,586
17,540
10,270
9,640
25,411
11,776
12,712
30,257
14,699
13,981
37,391
14,851
14,936
38,962
14,765
15,400
39,061
14,727
15,599
39,762
15,430
16,119
38,919
14,877
16,835
39,907
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, commercial, savings, and mortgage banking; sales, personal, and mortgage financing;
factoring, finance leasing, and other business lending; insurance underwriting; and
other investment activities.
n.a.
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 investors.
5. Includes public utilities and firms engaged primarily in such activities as communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
A26
1.33
DomesticNonfinancialStatistics • June 1982
PRIME RATE C H A R G E D BY BANKS on Short-Term Business Loans
P e r c e n t per a n n u m
Effective date
20.00
20.50
20.00
19.50
19.00
18.00
17.50
17.00
1981—June
3
July
8
Sept. 15
22
Oct.
5
13
Nov.
3
9
1.34
Effective Date
Rate
1981—Nov. 17
24.
1
16.5017.00
16.50
16.00
15.75
2
18
23
16.50
17.00
16.50
20
Dec.
1982—Feb.
Average
rate
Month
1981—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
20.16
19.43
18.05
17.15
19.61
20.03
20.39
20.50
20.08
Month
1981—Oct
Nov
Dec
1982—Jan
Feb
Mar
Apr
May
TERMS OF LENDING A T COMMERCIAL BANKS Survey of Loans Made, February 1-6, 1982
Size of loan (in thousands of dollars)
Item
All
sizes
50-99
100-499
500-999
1,000
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 range 1
31,600,736
167,711
1.4
17.13
16.61-17.55
879,384
120,258
3.5
18.34
17.23-19.12
560,057
18,056
3.8
17.88
17.00-18.97
686,973
10,419
4.4
18.20
17.42-19.05
2,391,858
13,787
3.7
17.65
16.75-18.64
938,120
1,443
3.8
17.31
16.50-17.98
26,144,343
3,748
1.0
16.99
16.56-17.44
40.0
54.9
17.5
35.4
27.8
13.9
46.6
36.5
57.3
41.5
64.4
51.0
26.4
70.4
63.5
32.7
36.3
56.6
Percentage of amount of loans
6 With floating rate
7 Made under commitment
8 With no stated maturity
16.8
18.6
16.2
LONG-TERM COMMERCIAL AND
INDUSTRIAL LOANS
9
10
11
12
13
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per annum)
Interquartile range 1
3,541,678
22,169
51.6
16.59
16.12-17.50
319,977
19,773
31.6
19.06
17.23-19.57
330,461
1,627
39.7
17.58
16.75-18.25
184,046
274
43.0
16.93
16.50-17.75
2,707,194
495
56.0
16.15
15.75-17.00
69.5
32.9
26.9
61.9
44.6
76.0
67.1
74.4
67.5
Percentage of amount of loans
14 With floating rate
15 Made under commitment
61.6
CONSTRUCTION AND
LAND DEVELOPMENT 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 range 1
21
22
23
24
Percentage of amount of loans
With floating rate
Secured by real estate
Made under commitment
With no stated maturity
1,209,125
26,525
12.9
17.86
17.27-19.25
7.8
19.90
17.98-20.46
172,993
4,869
9.8
19.37
18.83-20.17
285,350
3,865
13.4
18.84
18.27-19.51
230,605
1,400
10.5
14.83
75-18.54
407,589
189
16.3
17.68
17.23-18.27
52.3
87.3
50.9
4.6
19.5
56.8
55.4
10.8
59.8
85.5
26.1
4.4
40.6
99.3
3.7
51.5
94.9
51.8
7.8
66.8
83.7
75.0
1.8
30.0
13.3
56.6
35.4
1.8
27.5
1.6
70.8
74.4
.8
24.8
17.3
43.3
39.4
5.8
13.3
80.9
Type of construction
25 1- to 4-family
26 Multifamily
27 Nonresidential
112,588
16,202
62.8
All
sizes
10-24
28.8
25-19
100-249
250
and over
LOANS TO FARMERS
28
29
30
31
32
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per annum)
Interquartile range 1
33
34
35
36
37
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
1,266,037
57,806
7.1
17.68
17.11-18.39
17.57
17.42
17.66
17.93
17.85
138,005
36,774
17.65
16.65-18.54
166,907
11,122
8.3
17.33
16.64-18.27
164,173
4,955
7.5
17.67
17.18-18.27
194,427
2,920
7.5
17.66
16.75-18.52
216,317
1,655
6.3
17.63
17.18-18.27
386,208
380
6.9
17.88
17.50-18.47
18.16
17.96
17.58
17.38
17.86
17.42
16.78
17.29
17.42
17.85
17.82
17.50
17.53
17.11
18.35
17.31
18.17
17.48
19.04
17.20
18.05
17.38
(2)
18.29
(2)
17.98
6.2
1. Interest rate range that covers the middle 50 percent of the total dollar amount
of loans made.
2. Fewer than 10 sample loans.
(2)
(2)
17.44
17.70
NOTE. For more detail, see the Board's E.2 (111) statistical release,
Securities Markets
1.35
All
INTEREST RATES Money and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1982
Instrument
1979
1980
1982, week ending
1981
Feb.
Mar.
Apr.
May
Apr. 30
May 7
May 14
May 21
May 28
MONEY MARKET RATES
1 Federal funds 12
Commercial paper 3 4
2 1-month
3 3-month
4 6-month
Finance paper, directly placed3 4
5 1-month
6 3-month
7 6-month
Bankers acceptances4 5
8 3-month
9 6-month
Certificates of deposit, secondary market6
10 1-month
11 3-month
12 6-month
13 Eurodollar deposits, 3-month2
U.S. Treasury bills4
Secondary market 7
14
3-month
6-month
15
16
1-year
Auction average8
17
3-month
18
6-month
19
11.19
13.36
16.38
14.78
14.68
14.94
14.45
14.72
15.53
14.97
14.67
13.70
10.86
10.97
10.91
12.76
12.66
12.29
15.69
15.32
14.76
14.62
14.53
14.27
13.99
13.80
13.47
14.38
14.06
13.64
13.79
13.42
13.02
14.04
13.79
13.46
14.25
13.81
13.36
13.98
13.46
13.01
13.78
13.37
12.94
13.15
13.03
12.76
10.78
10.47
10.25
12.44
11.49
11.28
15.30
14.08
13.73
14.41
13.59
13.58
13.73
12.91
12.89
14.17
13.21
13.09
13.49
12.75
12.61
13.85
13.03
12.90
13.88
13.01
12.90
13.70
12.84
12.74
13.50
12.75
12.60
12.89
12.39
12.19
11.04
n.a.
12.78
n.a.
15.32
14.66
14.47
14.09
13.73
13.33
13.95
13.49
13.29
12.90
13.73
13.33
13.61
13.17
13.31
12.84
13.23
12.82
12.99
12.75
11.03
11.22
11.44
11.96
12.91
13.07
12.99
14.00
15.91
15.91
15.77
16.79
14.78
15.00
15.12
15.75
14.12
14.21
14.25
14.90
14.44
14.44
14.42
15.18
13.95
13.80
13.77
14.53
14.17
14.21
14.25
14.85
14.30
14.16
14.09
14.91
14.14
13.82
13.73
14.43
13.93
13.76
13.68
14.58
13.43
13.44
13.60
14.44
10.07
10.06
9.75
11.43
11.37
10.89
14.03
13.80
13.14
13.48
13.61
13.11
12.68
12.77
12.47
12.70
12.80
12.50
12.09
12.16
11.98
12.42
12.57
12.30
12.54
12.59
12.29
12.38
12.37
12.11
11.90
11.97
11.83
11.54
11.72
11.71
10.041
10.017
9.817
11.506
11.374
10.748
14.077
13.811
13.159
13.780
13.709
13.180
12.493
12.621
12.509
12,821
12.861
12.731
12.148
12.220
12.194
12.469
12.640
12.675
12.780
12.248
12.236
12.189
12.187
12.194
11.480
11.677
10.67
10.12
12.05
11.77
14.78
14.56
14.73
14.82
13.95
14.19
13.98
14.20
13.34
13.78
13.75
13.99
13.49
13.81
11.55
11.48
11.43
11.46
11.39
11.30
14.44
14.24
14.06
13.91
13.72
13.44
14.73
14.54
14.46
14.43
14.48
14.22
14.13
13.98
13.93
13.86
13.75
13.53
14.18
14.00
13.94
13.87
13.57
13.37
13.77
13.75
13.74
13.62
13.46
13.24
14.02
13.87
13.82
13.78
13.47
13.28
13.73
13.69
13.67
13.53
13.37
13.17
13.18
13.71
13.65
13.71
13.72
13.69
13.57
13.48
13.24
13.00
13.63
9.71
9.52
9.48
9.44
9.33
9.29
13.71
13.96
13.85
13.95
13.87
13.83
13.73
13.46
13.27
13.71
13.74
13.78
13.66
13.53
13.29
8.74
10.81
12.87
13.63
12.98
12.84
12.67
12.73
12.71
12.58
12.66
12.72
5.92
6.73
6.52
7.85
9.01
8.59
10.43
11.76
11.33
12.20
13.83
12.97
11.95
13.70
12.82
11.66
13.29
12.59
11.05
12.54
11.95
11.20
12.78
11.97
11.20
12.75
12.04
12.60
11.82
12.40
11.96
12.40
11.99
10.12
9,63
9.94
10.20
10.69
12.75
11.94
12.50
12.89
13.67
15.06
14.17
14.75
15.29
16.04
16.13
15.27
15.72
16,35
17.18
15.68
14.58
15.21
16.12
16.82
15.53
14.46
14.90
15.95
16.78
15.34
14.26
14.77
15.70
16.64
15.40
14.31
14.75
15.82
16.70
15.43
14.36
14.86
15.76
16.72
15.28
14.22
14.70
15.65
16.54
15.32
14.23
14.76
15.68
16.62
15.35
14.21
14.76
15.71
16.69
10.03
10.02
12.74
12.70
15.56
15.56
15.93
15.97
15.26
15.19
15.83
15.45
15.22
15.24
15.55
15.29
15.31
15.22
15.17
15.20
9.07
5.46
10.57
5.25
12.36
5.41
13.20
6.06
12.97
6.28
12.90
5.99
12.58
5.97
12.76
5.94
12.72
5.91
12.50
5.83
12.48
6.05
12.60
6.09
CAPITAL MARKET RATES
23
24
25
26
27
28
U.S. Treasury notes and bonds 9
Constant maturities10
1-year
2-year
2-72-year11
3-year
5-year
7-year
10-year
20-year
30-year
29
Composite12
Over 10 years (long-term)
20
21
??
State and local notes and bonds
Moody's series13
30
Aaa
31
Baa
32 Bond Buyer series14
33
34
35
36
37
38
39
Corporate bonds
Seasoned issues15
All industries
Aaa
Aa
A
Baa
Aaa utility bonds16
Recently offered issues
MEMO: Dividend/price ratio 17
40 Preferred stocks
41 Common stocks
1. Weekly and monthly figures are averages of all calendar days, where the
rate for a weekend or holiday is taken to be the rate prevailing on the preceding
business day. The daily rate is the average of the rates on a given day weighted
by the volume of transactions at these rates.
2. Weekly figures are 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 150179 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 Dills are issued.
9. Yields 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.
11.00
11.00
11.00
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 of yields (to maturity or call) 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 underwriter 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 transportation. Common stock ratios on the 500 stocks in the price index.
A28
1.36
DomesticNonfinancialStatistics • June 1982
STOCK MARKET
Selected Statistics
1982
1981
...
1980
1981
Sept.
Nov.
Oct.
Jan.
Dec.
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
Utility
4
5
Finance
6 Standard & Poor's Corporation
(1941-43 = 10)!
7 American Stock Exchange
(Aug. 31, 1973 = 100)
Volume of trading
(thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
55.67
61.82
45.20
36.46
58.65
68.06
78.64
60.52
37.35
64.28
74.02
85.44
72.61
38.90
73.52
68.37
78.07
63.67
38.17
69.38
69.40
78.94
65.65
38.87
72.58
71.49
80.86
67.68
40.73
76.47
67.91
76.85
62.04
39.30
70.99
71.81
81.70
68.27
40.22
74.74
66.16
74.78
59.09
38.32
70.50
63.86
71.51
55.19
38.57
69.08
66.97
75.59
57.91
39.20
71.44
67.07
75.97
56.84
39.40
69.16
107.94
118.71
128.05
118.27
119.84
122.92
123.79
117.41
114.50
110.84
116.31
116.35
186.56
300.94
343.58
313.60
308.81
321.0
322.65
296.49
275.10
255.08
271.15
272.88
32,233
4,182
44,867
6,377
46,967
5,346
46,042
5,556
45,287
4,233
50,791
5,257
43,598
4,992
48,419
4,497
51,169
4,400
55,227
4,329
54,119
3,938
51,323
4,337
Customer financing (end-of-period balances, in millions of dollars)
10 Regulated margin credit at
brokers-dealers2
3
11 Margin stock
12 Convertible bonds
13 Subscription issues
Free credit balances at brokers4
14 Margin-account
15 Cash-account
11,619
14,721
14,411
14,023
13,926
14,124
14,411
13,441
13,023
12,095
12,202
11,450
167
2
14,500
219
2
14,150
259
2
13,760
263
0
13,660
263
3
13,860
261
3
14,150
259
2
13,190
249
2
12,770
251
2
11,840
249
6
11,950
251
1
1,105
4,060
2,105
6,070
3,515
7,150
2,940
6,555
2,990
6,100
3,290
6,865
3,515
7,150
3,455
6,575
3,755
6,595
3,895
6,510
4,150
6,270
f
1
n. a.
Margin-account debt at brokers (percentage distribution, end of period)
16 Total
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
16.0
29.0
27.0
14.0
8.0
7.0
14.0
30.0
25.0
14.0
9.0
8.0
37.0
21.0
22.0
10.0
6.0
6.0
47.0
22.0
13.0
8.0
5.0
5.0
32.0
28.0
18.0
10.0
6.0
6.0
30.0
25.0
21.0
37.0
24.0
17.0
10.0
6.0
6.0
37.0
24.0
16.0
10.0
7.0
6.0
44.0
22.0
15.0
8.0
6.0
5.0
39.0
24.0
16.0
10.0
6.0
5.0
34.0
25.0
18.0
10.0
7.0
6.0
28,030
28,252
5
17
18
19
20
21
By equity class (in percent)
Under 40
40-49
50-59
60-69
70-79
11.0
6.0
7.0
I
I
Special miscellaneous-account balances at brokers (end of period)
23 Total balances (millions of dollars)6
Distribution by equity status
(percent)
24 Net credit status
Debt status, equity of
25
60 percent or more
26
Less than 60 percent
25,870
25,234
24,962
25,409
47.8
58.0
55.0
55.0
44.4
7.7
31.0
33.0
12.0
35.0
10.0
16,150
21,690
44.2
47.0
8.8
11.0
25,870
26,080
26,850
57.0
58.0
58.0
58.0
59.0
57.0
n a.
33.0
10.0
31.0
31.0
30.0
12.0
28.0
13.0
29.0
13.0
r
11.0
11.0
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
equity instruments and secured at least in part by stock. Credit extended is endof-month data for member firms of the New York Stock Exchange.
In addition to assigning a current loan value to margin stock generally, Regulations 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 based on loan values of other
collateral in the customer's margin account or deposits of cash (usually sales proceeds) occur.
7. Regulations G, T, and U of the Federal Reserve Board of Governors, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount
of credit to purchase and carry margin stocks that may be extended on securities
as collateral by prescribing a maximum loan value, which is a specified percentage
of the market value of the collateral at the time the credit is extended. Margin
requirements are the difference between the market value (100 percent) and the
maximum loan value. The term "margin stocks" is defined in the corresponding
regulation.
Financial Institutions
1.37
SELECTED FINANCIAL INSTITUTIONS
A29
Selected Assets and Liabilities
Millions of dollars, end of period
1982
1981
Account
1979
1980
July
Aug.
Sept.
Oct.
Nov.
Dec.'
Jan.'
Feb. r
Mar. r
Apr.?
678,039
681,712
Savings and loan associations
1 Assets
578,962
630,712
2 Mortgages
Cash and investment securities1
4 Other
475,688
46,341
56,933
503,192 511,990 518,172 518,778
57,928 57,817 58,932 59,530
69,592 75,000 75,918 77,350
5 Liabilities and net worth
578,962
630,712
470,004
55,232
40,441
14,791
9,582
11,506
511,636 514,805 513,438 515,649
64,586 79,704 83,456 87,477
47,045 57,188 60,025 61,857
17,541 22,516 23,431 25,620
8,767
7,741
7,354
7,040
12,394
16,556 18,275 15,307
6 Savings capital
7 Borrowed money
8 FHLBB
9 Other
10 Loans in process
11 Other
649,807
649,807
653,022
653,022
659,073
655,658
655,658
663,844
667,600
671,895
519,248 519,146 518,350
61,517 61,369 62,756
78,308 79,811 82,738
517,493
64,089
86,018
516,284 515,896 514,683
66,585 67,758 68,050
89,026 94,835 98,979
663,844
667,600
671,895
519,288 519,777 524,374
86,108 86,255 89,097
62,000 61,922 62,794
24,108 24,333 26,303
6,757
6,369
6,451
17,506 19,101 15,612
526,382
89,099
62,581
26,518
6,249
18,356
529,064 535,566 532,955
89,465 91,013 93,752
62,690 63,639 65,242
26,'775 27,374 28,510
6,144
6,399
6,563
18,574 22,435
20,145
659,073
660,326
660,326
678,039
681,712
12 Net worth2
32,638
33,329
31,001
30,499
30,185
29,414
28,742
28,392
27,514
27,077
26,487
26,007
13 MEMO: Mortgage loan commitments
outstanding3
16,007
16,102
17,235
16,689
16,012
15,733
15,758
15,225
15,131
15,397
15,582
16,326
Mutual savings banks
14 Assets
15
16
17
18
19
20
21
Loans
Mortgage
Other
Securities
U.S. government 5
State and local government
Corporate and other 6
Cash
Other assets
163,405
171,564
174,578
174,761
175,234
175,693
175,258
175,728
175,938
175,763
174,776
98,908
9,253
99,865
11,733
100,095
14,359
99,987
14,560
99,944
14,868
99,903
14,725
99,879
15,073
99,997
14,753
99,788
15,029
98,838
15,604
97,464
16,514
7,658
2,930
37,086
3,156
4,412
8,949
2,390
39,282
4,334
5,011
9,361
2,291
38,374
4,629
5,469
9,369
2,326
38,180
4,791
5,547
9,594
2,323
38,118
4,810
5,577
9,765
2,394
38,108
5,118
5,681
9,508
2,271
37,874
5,039
5,615
9,810
2,288
37,791
5,442
5,649
9,991
2,290
37,849
5,210
5,781
9,966
2,293
37,781
5,412
5,869
10,072
2,276
37,379
5,219
5,852
174,578
174,761
175,234
175,693
175,258
175,728
175,938
175,763
174,776
154,066 153,809 155,110
151,975 151,787 153,003
48,238 48,456 49,425
103,737 126,889 121,343
24,806
2,023
2,108
11,513 11,434 10,632
10,114 10,015
9,986
154,843
152,801
48,898
120,740
2,042
11,280
9,814
154,626
152,616
48,297
120,282
2,010
11,464
9,672
154,022
151,979
48,412
118,536
2,043
11,132
9,622
1,293
916
950
978
521,354
525,331
526,573
530,014
24,621 25,200 25,310
8,321
7,846
8,578
7,148
7,129
6,968
9,764
9,646
9,731
253,976 255,632 254,978
208,004 209,194 208,587
45,972 46,438 46,391
137,736 138,433 139,046
18,629 19,157
18,382
47,731 48,275 48,741
32,633 33,112 34,122
26,157
9,204
7,063
9,890
257,614
211,686
45,928
139,596
19,276
49,092
33,288
26,847 27,322
9,887
10,236
7,069
7,043
9,917
10,017
257,318 257,452
212,685 213,217
44,633 44,235
139,777 140,259
18,999 19,472
49,535 50,083
34,097 35,426
22 Liabilities
163,405
171,564
23
24
25
26
27
28
29
30
146,006
144,070
61,123
82,947
1,936
5,873
11,525
154,805 153,757 153,120 153,412
151,416 151,394 150,753 151,072
53,971 50,593 49,003 49,254
97,445 100,800 101,750 101,818
2,086 28,494 27,073 25,769
10,156
6,695
11,125 11,458
10,516 10,364
11,368 10,665
Deposits
Regular7
Ordinary savings
Time and other
Other
Other liabilities
General reserve accounts
MEMO: Mortgage loan commitments outstanding 8
4
3,182
1,476
1,401
1,333
1,218
1,140
1,207
n a.
Life insurance companies
31 Assets
32
33
34
35
36
37
38
39
40
41
42
Securities
Government
United States 9
State and local
Foreign10
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
432,282
479,210
503,994
338
4,888
6,428
9,022
222,332
178,371
39,757
118,421
13,007
34,825
27,563
21,378 23,691 23,949 24,280
7,544
5,345
7,359
7,670
6,701
6,865
6,904
7,033
9,467
9,332
9,501
9,577
238,113 250,186 250,371 250,315
190,747 203,016 204,501 205,908
47,366 41,170 45,870 44,407
131,080 135,928 136,516 136,982
15,033 17,429 17,626 17,801
41,411 45,591 46,252 47,042
31,702 31,169 31,971 33,058
506,585
509,478
515,079
519,281
n a.
Credit unions
43 Total assets/liabilities and
capital
44 Federal
45 State
46 Loans outstanding
47
Federal
48
State
49 Savings
50 Federal (shares)
51 State (shares and deposits)
For notes see bottom of page A30.
65,854
35,934
29,920
53,125
28,698
24,426
56,232
35,530
25,702
71,709
39,801
31,908
47,774
25,627
22,147
64,399
36,348
28,051
76,043
75,656
76,145
76,123
76,830
77,682
78,012
78,986
81,055
81,351
41,678
34,365
50,724
27,378
23,346
67,690
37,176
30,514
41,394
34,262
51,207
27,701
23,506
66,943
36,713
30,230
41,682
34,463
51,407
27,871
23,536
67,512
36,928
30,584
41,727
34,396
51,029
27,686
23,343
67,625
37,015
30,610
42,025
34,805
50,631
27,508
23,123
67,981
37,261
30,720
42,382
35,300
50,448
27,458
22,990
68,871
37,574
31,297
42,512
35,500
49,949
27,204
22,745
69,432
37,875
31,557
43,111
35,875
49,610
27,051
22,559
70,227
38,331
31,896
44,263
36,792
49,668
27,119
22,549
72,218
39,431
32,787
44,371
36,980
49,533
27,064
22,469
72,569
39,688
32,881
A30
1.38
DomesticNonfinancialStatistics • June 1982
F E D E R A L FISCAL A N D FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1979
Fiscal
year
1980
Fiscal
year
1981
1980
H2
1981
HI
1982
H2
Feb.
Mar.
Apr.
U.S. budget
1 Receipts'
2 Outlays 1 ' 2
3 Surplus, or deficit ( - )
4 Trust funds
5 Federal funds 3
463,302
490,997
-27,694
18,335
-46,030
517,112
576,675
-59,563
8,801
-68,364
599,272
657,204
-57,932
6,817
-64,749
260,569
309,389
-48,821
-2,551
-46,270
317,304
333,115
-15,811
5,797
-21,608
301,777
358,558
-56,780
-8,085
-48,697
43,042
57,822
-14,780
-1,892
-12,888
45,291
63,546
-18,255
966
-19,221
75,777
66,073
9,704
626
9,077
Off-budget entities (surplus, or deficit
(-))
6 Federal Financing Bank outlays
7 Other 4 5
-13,261
793
-14,549
303
-20,769
-236
-7,552
376
-11,046
-900
-8,728
-1,752
-435
222
-601
83
-1,153
160
-40,162
-73,808
-78,936
-55,998
-27,757
-67,260
-14,993
-18,773
8,711
33,641
70,515
79,329
54,764
33,213
54,081
10,693
12,305
2,527
-408
6,929
-355
3,648
-1,878
1,485
-6,730
7,964
2,873
-8,328
-1,111
14,290
4,973
-673
7,035
-567
-11,256
19
24,176
6,489
17,687
20,990
4,102
16,888
18,670
3,520
15,150
12,305
3,062
9,243
16,389
2,923
13,466
12,046
4,301
7,745
20,668
3,835
16,833
13,001
2,866
10,135
28,740
12,239
16,501
U.S. budget plus off-budget, including
Federal Financing Bank
8 Surplus, or deficit ( - )
Source or financing
9 Borrowing from the public
10 Cash and monetary assets (decrease, or
increase ( - ) )
11 Other 7
MEMO:
12 Treasury operating balance (level, end of
period)
13 Federal Reserve Banks
14 Tax and loan accounts
1. The Budget of the U.S. Government, Fiscal Year 1983, has reclassified supplemental medical insurance premiums and voluntary hospital insurance premiums,
previously included in other social insurance receipts, as offsetting receipts in the
health function.
2. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was reclassified 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. Other off-budget includes petroleum acquisition and transportation, strategic
petroleum reserve effective November 1981.
6. 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.
7. Includes accrued interest payable to the public; allocations of special drawing
rights; deposit funds; miscellaneous liability (including checks outstanding) and
asset accounts; seigniorage; increment onjgold; 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 1983.
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. Before 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, before 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 guaranteed, which are shown in the table under "Business" securities.
10. Issues of foreign governments and their subdivisions and bonds of the International Bank for Reconstruction and Development.
NOTE. Savings and loan associations: Estimates by the FHLBB for all associations
in the United States. Data are based on monthly reports of federally insured
associations and annual reports of other associations. Even when revised, data for
current and preceding year are subject to further revision.
Mutual savings banks: Estimates of National 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 differences between market and book values are not made on each item separately but
are included, in total, in "other assets."
Credit unions: Estimates by the National Credit Union Administration for a
group of federal and state-chartered credit unions that account for about 30 percent
of credit union assets. Figures are preliminary and revised annually to incorporate
recent benchmark data.
Federal Finance
1.39
A31
U.S. B U D G E T RECEIPTS A N D OUTLAYS
Millions of dollars
Calendar year
Source or type
Fiscal
year
1979
Fiscal
year
1980
Fiscal
year
1981
1980
1981
1982
H2
HI
H2
Feb.
Apr.
Mar.
RECEIPTS
1 All sources1
2 Individual income taxes, net
3 Withheld
4 Presidential Election Campaign F u n d . . .
5 Nonwithheld
6
Refunds
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 receipts 1,4
463,302
517,112
599,272
260,569
317,304
301,777
43,042
45,291
75,777
217,841
195,295
36
56,215
33,705
244,069
223,763
39
63,746
43,479
285,917
256,332
41
76,844
47,299
131,962
120,924
4
14,592
3,559
142,889
126,101
36
59,907
43,155
147,035
134,199
5
17,391
4,559
21,007
23,882
4
1,608
4,487
13,391
23,307
11
4,329
14,255
41,672
22,699
6
35,282
16,315
71,448
5,771
72,380
7,780
73,733
12,596
28,579
4,518
44,048
6,565
31,056
738
3,055
1,763
8,435
1,525
9,032
1,690
138,939
157,803
182,720
75,679
101,316
91,592
15,109
18,752
21,593
115,041
133,042
156,953
66,831
83,851
82,984
12,495
17,740
14,642
5,034
15,387
3,477
5,723
15,336
3,702
6,041
16,129
3,598
188
6,742
1,919
6,240
9,205
2,020
244
6,355
2,009
539
1,734
342
488
130
395
4,470
2,120
362
18,745
7,439
5,411
9,252
24,329
7,174
6,389
12,748
40,839
8,083
6,787
13,790
15,332
3,717
3,499
6,318
21,945
3,926
3,259
6,487
22,097
4,661
3,742
8,441
2,908
644
866
1,215
3,182
812
787
1,457
2,732
704
582
1,152
18 All types1-6
490,997
576,675
657,204
309,389
333,115
358,558
57,822
63,546
66,073
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology . . .
Energy
Natural resources and environment
Agriculture
117,681
6,091
5,041
6,856
12,091
6,238
135,856
10,733
5,722
6,313
13,812
4,762
159,765
11,130
6,359
10,277
13,525
5,572
72,457
5,430
3,205
3,997
7,722
1,892
80,005
5,999
3,314
5,677
6,476
3,101
87,421
4,655
3,388
4,394
7,296
5,181
14,578
555
568
446
651
1,163
16,436
1,796
617
519
1,017
2,621
16,385
1,111
532
511
1,148
949
Commerce and housing credit
Transportation
Community and regional development....
Education, training, employment, social
services
29 Health 1
30 Income security6
2,579
17,459
9,542
7,788
21,120
10,068
3,946
23,381
9,394
3,163
11,547
5,370
2,073
11,991
4,621
1,825
10,753
4,269
-259
2,166
439
-235
1,241
488
1,178
1,867
523
29,685
46,962
160,159
30,767
55,220
193,100
31,402
65,982
225,099
15,221
29,680
107,912
15,928
33,113
113,490
13,878
35,322
129,269
2,198
5,841
20,345
1,952
6,578
22,074
2,304
6,298
21,912
19,928
4,153
4,093
8,372
52,566
-18,488
21,183
4,570
4,505
8,584
64,504
-21,933
22,988
4,698
4,614
6,856
82,537
-30,320
11,731
2,299
2,432
4,191
35,909
-14,769
10,531
2,344
2,692
3,015
41,178
-12,432
12,880
2,290
2,311
3,043
47,667
-17,281
1,911
381
549
129
7,634
-1,474
2,273
478
692
13
6,664
-1,679
3,239
419
123
1,176
7,633
-1,235
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes 5
Miscellaneous receipts
OUTLAYS
25
26
27
28
31
32
33
34
35
36
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Interest
Undistributed offsetting receipts7
1. The Budget of the U.S. Government, Fiscal Year 1983 has reclassified supplemental medical insurance premiums and voluntary hospital insurance premiums,
previously included in other social insurance receipts, as offsetting receipts in the
health function.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and Civil Service retirement and
disability fund.
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
6. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was reclassified from an off-budget agency to an on-budget agency in the Department of
Labor.
7. Consists of interest received by trust funds, rents and royalties on the Outer
Continental Shelf, and U.S. government contributions for employee retirement.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government" and the Budget of the U.S. Government, Fiscal Year 1983.
A32
1.40
DomesticNonfinancialStatistics • June 1982
F E D E R A L D E B T SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1980
1981
1982
Item
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
1 Federal debt outstanding
870.4
884.4
914.3
936.7
970.9
977.4
1,003.9
1,034.7
1,066.4
2 Public debt securities
3 Held by public
4 Held by agencies
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
971.2
771.3
199.9
997.9
789.8
208.1
1,028.7
825.5
203.2
1,061.3
858.9
202.4
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
6.2
4.7
1.5
6.1
4.6
1.5
6.0
4.6
1.4
5.1
3.9
1.2
5 Agency securities
6 Held by public
7 Held by agencies
8 Debt subject to statutory limit
864.5
878.7
908.7
931.2
965.5
972.2
998.8
1,029.7'
1,062.2
9 Public debt securities
10 Other debt 1
862.8
1.7
877.0
1.7
907.1
1.6
929.6
1.6
963.9
1.6
970.6
1.6
997.2
1.6
1,028. V
1.6
1,062.7
1.5
11 MEMO: Statutory debt limit
879.0
925.0
925.0
935.1
985.0
985.0
999.8
1,079.8
1,079.8
1. Includes guaranteed debt of government agencies, specified participation certificates, notes to international lending organizations, and District of Columbia
stadium bonds.
1.41
GROSS PUBLIC D E B T OF U.S. TREASURY
NOTE. Data from Treasury Bulletin (U.S. Treasury Department),
Types and Ownership
Billions of dollars, end of period
1982
Type and holder
1978
1979
1980
1981
Jan.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Feb.
Mar.
Apr.
May
Total gross public debt
789.2
845.1
930.2
1,028.7
1,038.4
1,048.2
1,061.3
1,065.7
1,071.7
By type
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable1
Convertible bonds2
State and local government series
Foreign issues3
Government
Public
Savings bonds and notes 4
Government account series
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
1,027.3
720.3
245.0
375.3
99.9
307.0
1,032.7
726.5
250.6
374.4
101.6
306.1
1,042.2
737.5
254.0
382.1
101.4
304.7
1,059.8
752.6
256.2
395.0
101.4
307.2
1,064.5
755.8
254.9
399.7
101.3
308.7
1,066.4
755.7
256.1
398.4
101.2
310.7
23.8
24.0
17.6
6.4
72.5
185.1
23.0
19.0
14.9
4.1
68.1
196.7
22.7
18.9
14.8
4.1
67.8
196.4
22.7
18.4
14.3
4.1
67.6
195.7
23.2
19.6
15.6
4.1
67.4
196.7
23.2
19.4
15.4
4 1
67.3
198.5
23.4
18.4
14.8
36
67.3
201.3
1.5
1.1
5.3
15 Non-interest-bearing debt
6.8
1.2
1.3
1.4
5.7
6.0
16
17
18
19
20
21
22
23
By holder5
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Mutual savings banks
Insurance companies
Other companies
State and local governments
170.0
109.6
508.6
93.2
5.0
15.7
19.6
64.4
187.1
117.5
540.5
96.4
4.7
16.7
22.9
69.9
192.5
121.3
616.4
116.0
5.4
20.1
25.7
78.8
203.3
131.0
694.5
109.4
5.2
19.1
37.8
85.6
202.8
127.7
707.3
111.4
5.4
19.5
37.9
86.2
201.1
125.4
720.8
111.8
5.4
18.7
37.5
86.2
24
25
26
27
Individuals
Savings bonds
Other securities
Foreign and international6
Other miscellaneous investors7
80.7
30.3
137.8
58.9
79.9
36.2
124.4
90.1
72.5
56.7
127.7
106.9
68.0
75.6
141.4
152.3
67.9
76.2
142.1
160.7
67.7
77.0
140.0
174.5
1. Includes (not shown separately): Securities issued to the Rural Electrification
Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
2. These nonmarketable bonds, also known as Investment Series B Bonds, may
be exchanged (or converted) at the owner's option for IV2 percent, 5-year marketable Treasury notes. Convertible bonds that have been so exchanged are removed 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.
n a.
n a.
n a.
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.
7. Includes savings and loan associations, nonprofit institutions, corporate pension trust funds, dealers and brokers, certain government deposit accounts, and
government sponsored agencies.
NOTE. Gross public debt excludes guaranteed agency securities.
Data by type of security from Monthly Statement of the Public Debt of the United
States (U.S. Treasury Department); data by holder from Treasury Bulletin.
Federal Finance
1.42
U.S. GOVERNMENT MARKETABLE SECURITIES
A33
Ownership, by maturity
Par value; millions of dollars, end of period
1982
T
R
1982
1 , 1 . .
1981
Feb.
Mar.
Feb
All maturities
Mar.
1 to 5 years
1 All holders
623,186
720,293
737,532
752,620
197,409
228,550
234,503
242,354
2 U.S. government agencies and trust funds
3 Federal Reserve Banks
9,564
121,328
8,669
130,954
8,042
124,819
8,001
125,589
1,990
835
1,906
38,223
1,906
35,425
1,906
37,193
492,294
77,868
3,917
11,930
7,758
4,225
21,058
365,539
580,671
74,618
3,971
12,090
4,214
4,122
18,991
462,663
604,671
77,688
4,206
12,409
4,305
4,767
21,581
479,714
619,030
79,398
4,533
13,088
4,318
4,849
21,740
491,104
159,585
44,482
1,925
4,504
2,203
2,289
4,595
99,577
188,422
39,021
1,870
5,596
1,146
2,260
4,278
134,251
197,172
40,449
1,961
5,766
1,024
2,508
4,766
140,699
203,254
41,420
2,253
5,945
1,073
2,460
4,707
145,396
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
Total, within 1 year
12 All holders
13 U.S. government agencies and trust funds
14 Federal Reserve Banks
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
5 to 10 years
297,385
340,082
353,309
357,073
56,037
63,483
57,279
60,785
830
56,858
647
64,113
20
62,593
20
61,579
1,404
13,548
779
11,854
779
10,093
779
10,102
239,697
25,197
1,246
1,940
4,281
1,646
7,750
197,636
275,322
29,480
1,569
2,201
2,421
1,731
7,536
230,383
290,695
31,448
1,748
2,213
2,604
2,032
7,770
242,880
295,473
31,579
1,774
2,350
2,329
2,140
6,974
248,328
41,175
5,793
455
3,037
357
216
2,030
29,287
50,851
4,496
238
2,507
344
98
2,365
40,804
46,407
2,858
185
2,329
268
158
2,299
38,310
49,904
3,120
196
2,578
292
163
2,419
41,136
Bills, within 1 year
23 All holders
24 U.S. government agencies and trust funds
25 Federal Reserve Banks
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
10 to 20 years
216,104
245,015
254,037
256,212
36,854
44,744
46,432
46,399
1
43,971
*
49,679
2
46,961
2
45,692
3,686
5,919
3,996
6,692
3,996
6,617
3,952
6,624
172,132
9,856
394
672
2,363
818
5,413
152,616
195,335
9,667
423
760
1,173
363
5,126
177,824
207,074
11,504
582
681
1,731
737
5,236
186,603
210,518
11,575
559
784
1,544
822
4,327
190,905
27,250
1,071
181
1,718
431
52
3,597
20,200
34,055
873
151
1,119
131
16
2,824
28,940
35,819
1,083
171
1,325
200
26
4,238
28,776
35,822
1,328
170
1,361
267
21
4,872
27,804
Other, within 1 year
Over 20 years
34 All holders
81,281
95,068
99,272
100,861
35,500
43,434
46,010
46,010
35 U.S. government agencies and trust funds
36 Federal Reserve Banks
829
12,888
647
14,433
19
15,632
18
15,887
1,656
9,258
1,340
10,073
1,340
10,092
1,343
10,002
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
67,565
15,341
852
1,268
1,918
828
2,337
45,020
79,987
19,814
1,146
1,442
1,248
1,368
2,410
52,560
83,622
19,945
1,167
1,532
873
1,295
2,534
56,277
84,956
20,003
1,215
1,565
785
1,318
2,647
57,423
24,587
1,325
110
730
476
21
3,086
18,838
32,020
749
144
666
172
17
1,988
28,285
34,578
1,850
141
776
209
43
2,508
29,049
34,576
1,952
140
853
358
65
2,767
28,440
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. 31,1982: (1)5,297 commercialbanks, 444 mutual savings banks,
and 725 insurance companies, each about 80 percent; (2) 408 nonfinancial corporations and 467 savings and loan associations, each about 50 percent; and (3)
489 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.
A34
1.43
DomesticNonfinancialStatistics • June 1982
U.S. GOVERNMENT SECURITIES DEALERS
Transactions
Par value; averages of daily figures, in millions of dollars
1982, week ending Wednesday
1982
Item
1979
1981
1980
Mar. r
Feb.
Apr
Apr. 21
Apr. 28
May 5
May 12
May 19
1
Immediate delivery1
U.S. government securities
13,183
18,331
24,728
30.524
27.384
28,424
33,233
27,747
25,319
32,778
31,248
2
3
4
5
6
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
7,915
454
2,417
1,121
1,276
11,413
421
3,330
1,464
1,704
14,768
621
4,360
2,451
2,528
17,557
665
6,070
2,968
3,264
14,995
742
5.606
2.843
3.199
16.090
910
5,288
3,136
2,999
20,210
1,069
5,312
2,941
3,702
14,489
893
6,930
2,492
2,942
13,334
802
6,215
2,182
2,786
16,464
600
7,045
3,964
4,704
17,698
619
6,308
2,986
3,636
7
8
9
10
11
12
13
14
15
16
17
18
By type of customer
U.S. government securities
dealers
U.S. government securities
brokers
All others2
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures transactions3
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions4
U.S. government securities
Federal agency securities
1,448
1,484
1,640
1,556
1,386
1,718
1,951
2,080
1,221
1,779
1,927
5,170
6,564
2,723
1,764
7,610
9,237
3,258
2,472
11,750
11,337
3,306
4,477
1,807
6,128
15,239
13,729
3,617
4,961
2,208
7.791
13,701
12,296
3.315
4.355
2,115
7.217
13,669
13,037
3,620
4,495
2,434
7,537
15,995
15,288
3,839
4,835
2,539
7,708
13,460
12.207
3,999
4,846
2,344
7,291
11,406
12,692
2,911
4,076
2.009
8,373
16,949
14,049
4,101
5,181
2,391
7,685
15,547
13,773
3,891
4,890
2,204
7,859
3,523
1,330
234
4,682
1.545
261
5,095
1,179
204
4,447
959
216
5,493
1,287
315
4,001
953
170
4,028
995
177
5,299
2,170
250
6,219
1,691
258
365
1,370
876
1,409
493
1,358
371
951
340
1,163
703
354
564
804
1,039
588
375
462
i
t
1
n a.
n.a.
1
\
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 exchange in which parties commit to purchase or sell securities for delivery at a future
date.
4. Forward transactions are agreements arranged in the over-the-counter market
in which securities are purchased (sold) for delivery after 5 business days from the
1.44
U.S. GOVERNMENT SECURITIES DEALERS
date of the transaction for government securities (Treasury bills, notes, and bonds)
or after 30 days for mortgage-backed agency issues.
NOTE. Averages for transactions are based on number of trading days in the
period.
Transactions are market purchases and sales of U.S. government securities dealers reporting to the Federal Reserve Bank of New York. The figures exclude
allotments of, and exchanges for, new U.S. government securities, redemptions of
called or matured securities, purchases or sales of securities under repurchase
agreement, reverse repurchase (resale), or similar contracts.
Positions and Financing
Averages of daily figures, in millions of dollars
1982, week ending Wednesday
1982
Item
1979
1980
1981
Feb.
Mar.
Apr.
Mar. 31
Apr. 7
Apr. 14
Apr. 21
Apr. 28
Positions
1
7
3
4
5
6
7
8
9
10
11
12
13
14
15
Net immediate1
U.S. government securities
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Future positions
Treasury bills
Treasury coupons
Federal agency securities
Forwards positions
U.S. government securities
Federal agency securities
3,223
3,813
-325
-455
160
30
1,471
2,794
n a.
4,306
4,103
-1,062
434
166
665
797
3,115
n a.
9,033
6,485
-1,526
1.488
292
2,294
2,277
3,435
1,746
2,658
9,879
4,557
83
3,287
-580
2,532
2,311
3,389
1,953
2,560
12,247
6,594
-118
3,333
-513
2,952
2,505
3,884
2.276
3,151
12,564
7,718
-99
2,902
-520
2,563
2,916
4,467
2.530
3,229
12.668
7,406
-256
3,640
-906
2,784
2,587
3,817
2,736
3,291
14,710
9,318
14
2,827
35
2,517
2,797
4,310
2,907
3,323
12,737
8,061
67
2,728
-419
2,301
3,353
4,645
2,783
3,329
12,480
8,202
-77
2,542
-776
2,588
2,838
4,546
2,403
3,243
11,185
6,008
-234
3,398
-822
2,835
2,796
4,445
2,212
3,101
-8,934
-2,733
522
-7,588
-2,593
493
-6,652
-2,528
-161
-5,463
-2.896
-403
-4,737
-2.195
-227
-1,658
-2,008
-66
-2,873
-2,375
-282
-6,481
-3,098
-544
9,062
-3,693
-603
-603
-451
-719
-1,207
-518
-1,007
-590
-1,064
-404
-904
-707
-1,074
-574
-1,215
-569
-1,080
-541
-943
Financing2
Reverse repurchase agreements
Overnight and continuing . . .
Term agreements
Repurchase agreements4
18 Overnight and continuing . . .
19 Term agreements
16
17
For notes see opposite page.
I
1
n.a.
14,568
32,048
21.854
45,520
24,745
42,608
26,924
46,509
27,512
39,137
26.453
43,803
25,045
41,158
26,003
49,365
30,196
51,710
35,919
29,449
43,005
38,313
48,139
38,833
53,246
43,140
51,909
37,628
51,089
41,795
49,996
41,712
51,437
45,983
60,463
43,069
Federal Finance
1.45
A35
FEDERAL A N D FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding
Millions of dollars, end of period
1981
Agency
1978
1979
Sept.
1 Federal and federally sponsored agencies'
2 Federal agencies
3 Defense Department 2
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
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
1982
1980
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
137,063
163,290
193,229
223,393
226,010
226,269
227,210
226,418
226,539
228,749
23,488
968
8,711
588
24,715
738
9,191
537
28,606
610
11,250
477
30,870
516
12,855
432
31,069
514
12,845
427
31,156
490
12,829
419
31,806
484
13,339
413
31,053
470
13,135
406
30,806
460
12,861
397
31,408
454
13,421
382
3,141
2,364
7,460
356
2,979
1,837
8,997
436
2.817
1,770
11,190
492
2,715
1,538
12,599
215
2,715
1,538
12,830
200
2,715
1,538
12,965
200
2,715
1,538
13,115
202
2,191
1,538
13,115
198
2,165
1,538
13,187
198
2,165
1,538
13,250
198
113,575
27,563
2,262
41,080
20,360
11,469
4,843
5,081
915
2
138,575
33,330
2,771
48,486
16,006
2,676
584
33,216
1,505
1
164,623
41,258
2,536
55,185
12,365
1,821
584
48,153
2,720
1
192,523
58,276
2,308
56,688
10,317
1,388
220
59,024
4,300
2
194,941
57,990
2,308
57,805
9,717
1,388
220
60,911
4,600
2
195,113
57,854
2,608
58,533
9,717
1,388
220
60,191
4,600
2
195,404
58,090
2,604
58,749
9,717
1,388
220
60,034
4,600
2
195,365
57,387
2,604
58,860
8,717
1,388
220
61,187
5,000
2
195,733
57,743
2,604
59,018
8,717
1,388
220
61,041
5,000
2
197,341
58,839
2,500
59,270
8,717
1,388
220
61,405
5,000
2
51,298
67,383
87,460
107,309
108,171
109,495
110,698
111,965
112,367
113,567
6,898
2,114
915
5,635
356
8,353
1,587
1,505
7,272
436
10,654
1,520
2,720
9,465
492
12,409
1,288
4,300
10,874
215
12,409
1.288
4,600
11,105
200
12,409
1,288
4,600
11,240
200
12,741
1,288
4,600
11,390
202
12,741
1,288
5,000
11,435
198
12,741
1,288
5,000
11,462
198
13,305
1,288
5,000
11,525
198
23,825
4,604
6,951
32,050
6,484
9,696
39,431
9,196
13,982
48,821
12,343
17,059
48,571
12,674
17,324
49,029
12,924
17,805
48,821
13,516
18,140
49,026
13,836
18,441
49,081
13,989
18,608
48,681
14,452
19,118
MEMO;
20 Federal Financing Bank debt'-9
Lending to federal and federally sponsored
agencies
21 Export-Import Bank 4
22 Postal Service7
23 Student Loan Marketing Association8
24 Tennessee Valley Authority
25 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 securities market.
6. Certificates of participation issued prior to fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department
NOTES TO TABLE 1.44
1. Immediate positions are net amounts (in terms of par values) of securities
owned by nonbank dealer firms and dealer departments of commercial banks on
a commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase (RPs). The maturities of some repurchase agreements are sufficiently long, however, to suggest that the securities
involved are not available for trading purposes. 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 securities, negotiable CDs, bankers acceptances, and commercial paper.
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 Association 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 particular agency being generally small. The Farmers Home Administration item consists
exclusively of agency assets, while the Rural Electrification Administration entry
contains both agency assets and guaranteed loans.
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.
NOTE. Data for positions are averages of daily figures, in terms of par value,
based on the number of trading days in the period. Positions are shown net and
are on a commitment basis. Data for financing are based on Wednesday figures,
in terms of actual money borrowed or lent.
A36
1.46
DomesticNonfinancialStatistics • June 1982
NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
Type of issue or issuer,
or use
1981
1979
1980
Aug.
1 All issues, new and refunding1
1982
1981
Sept.
Oct.
Nov.
Dec.
Jan.'
Feb. r
Mar.
43,365
48,367
47,732
3,113
3,910
4,097
5,355
4,744
3,853
3,679
5,549
12,109
53
31,256
67
14,100
38
34,267
57
12,394
34
35,338
55
1,000
8
2,113
4
560
2
3,350
9
748
2
3,349
5
1,315
3
4,040
2
749
1
3,995
3
1,036
2
2,817
4
1,051
0
2,628
6
1,733
9
3,816
5
Type of issuer
6 State
7 Special district and statutory authority ..
8 Municipalities, counties, townships,
school districts
4,314
23,434
15,617
5,304
26,972
16,090
5,288
27,499
14,945
446
1,701
966
92
2,749
1,070
439
2,467
1,191
518
3,439
1,398
315
3,308
1,120
514
2,123
1,216
234
2,150
1,295
430
2,915
2,204
9 Issues for new capital, total
41,505
46,736
46,530
2,460
3,904
4,009
5,318
4,683
3,696
3,638
4,666
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
5,130
2,441
8,594
15,968
3,836
5,536
4,572
2,621
8,149
19,958
3,974
7,462
4,547
3,447
10,037
12,729
7,651
8,119
257
113
524
770
316
480
153
222
1,626
515
874
514
203
499
700
953
1,015
639
576
286
757
1,873
676
1,150
561
355
955
1,813
523
476
236
138
1,178
892
447
805
261
206
1,272
823
477
599
394
360
697
1,755
609
851
2
3
4
5
10
11
12
13
14
15
Type of issue
General obligation
U.S. government loans2
Revenue
U.S. government loans2
1. Par amounts of long-term issues based on date of sale.
2. Consists of tax-exempt issues guaranteed by the Farmers Home Administration.
1.47
SOURCE. Public Securities Association.
NEW SECURITY ISSUES of Corporations
Millions of dollars
Type of issue or issuer,
or use
1981
1979
1980
Aug.
1
1982
1981
Sept.
Oct.
Nov.
Dec.
Jan. r
Feb/
Mar.
1 All issues
51,533
73,694
69,283
3,097
4,696
4,368
8,518
5,908
2,954
3,294
6,436
2 Bonds
40,208
53,206
44,643
1,616
2,797
2,845
6,724
3,893
1,278
1,879
4,512
Type of offering
3 Public
4 Private placement
25,814
14,394
41,587
11,619
37,653
6,989
905
711
2,198
599
2,582
263
6,560
164
3,576
317
614
664
1,464
415
3,540
972
9.678
3,948
3,119
8,153
4,219
11,094
15,409
6,693
3,329
9,557
6,683
11,534
12,325
5,229
2,054
8,963
4,280
11,793
308
390
95
360
115
348
452
201
63
1,012
471
598
21
617
51
1,008
83
1,065
2,054
949
130
802
326
2,463
954
850
82
582
106
1,319
283
230
43
493
8
221
262
59
3
345
364
845
708
691
224
1,568
84
1,236
11,325
20,489
24,642
1,481
1,899
1,523
1,794
2,015
1,676
1,415
1,924
3,574
7,751
3,631
16,858
1,796
22,846
14
1,467
186
1,713
141
1,382
59
1,735
80
1,935
199
1,477
185
1,230
199
1,725
1.679
2,623
255
5,171
303
1,293
4,839
5,245
549
6,230
567
3,059
4,838
7,436
735
5,486
1,778
4,371
160
661
91
248
12
310
117
487
87
514
369
325
193
449
23
438
7
412
407
564
15
405
85
318
258
456
23
604
95
580
129
723
25
449
58
292
67
426
73
743
2
104
394
653
27
547
3
301
5
6
7
8
9
10
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
11 Stocks
Type
12 Preferred
13 Common
14
15
16
17
18
19
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures, which represent gross proceeds of issues maturing in more than one
year, sold for cash in the United States, are principal amount or number of units
multiplied by offering price. Excludes offerings of less than $100,000, secondary
offerings, undefined or exempted issues as defined in the Securities Act of
1933, employee stock plans, investment companies other than closed-end, intracorporate transactions, and sales to foreigners,
SOURCE. Securities and Exchange Commission.
Corporate Finance
1.48
OPEN-END INVESTMENT COMPANIES
A37
Net Sales and Asset Position
Millions of dollars
1981
Item
1980
1982
1981
Sept.
Oct.
Nov.
Dec.
Jan.
Mar. r
Feb.
Apr.
INVESTMENT COMPANIES1
1 Sales of own shares2
2 Redemptions of own shares3
3 Net sales
15,266
12,012
3,254
20,596
15,866
4,730
1,768
1,457
-8
1,729
593
1,175
2,140
1,125
604
3,032
1,769
371
2,049
1,475
1,557
2,049
1,456
593
3,325
2,056
1,269
2,753
2,305
448
4 Assets4
Cash position5
5
6
Other
58,400
5,321
53,079
55,207
5,277
49,930
51,659
5,409
46,250
54,335
5,799
48,536
57,408
6,269
51,139
55,207
5,277
49,930
54,347
5,424
48,923
52,695
5,540
47,155
53,001
5,752
47,249
55,981
6,079
49,912
1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment
of capital gains distributions and share issue of conversions from one fund to another
in the same group.
3. Excludes share redemption resulting from conversions from one fund to another in the same group.
4. Market value at end of period, less current liabilities.
1.49
5. Also includes all U.S. government securities and other short-term debt securities.
NOTE. Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
CORPORATE PROFITS A N D THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1980
Account
1979
1980
1981
1981
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2
3
4
5
6
1 Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
196.8
255.3
87.6
167.7
50.1
117.6
182.7
245.5
82.3
163.2
56.0
107.2
191.7
233.3
77.7
155.5
63.1
92.4
169.3
217.9
71.5
146.4
55.7
90.7
177.9
237.6
78.5
159.1
56.7
102.4
183.3
249.5
85.2
164.3
57.7
106.6
203.0
257.0
87.7
169.3
59.6
109.6
190.3
229.0
76.4
152.7
62.0
90.6
195.7
234.4
78.1
156.3
64.8
91.5
177.6
212.8
68.8
144.0
66.0
78.0
7 Inventory valuation
8 Capital consumption adjustment
-42.6
-15.9
-45.7
-17.2
-27.7
-13.9
-31.1
-17.6
-41.7
-17.9
-48.4
-17.8
-39.2
-14.7
-24.0
-14.7
-25.3
-13.4
-22.3
-12.8
SOURCE. Survey of Current Business (U.S. Department of Commerce).
A38
1.50
DomesticNonfinancialStatistics • June 1982
NONFINANCIAL CORPORATIONS
Current Assets and Liabilities
Billions of dollars, except for ratio
1980
Account
1975
1976
1977
1978
1981
1979
Q4
Q1
Q3
Q2
Q4
1 Current assets
759.0
826.8
902.1
1,030.0
1,200.9
1,281.6
1,321.2
1,317.4
1,349.2
1,361.4
2
3
4
5
6
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
116.1
15.6
456.8
501.7
110.8
121.0
17.3
491.2
525.4
126.7
120.5
17.0
507.3
542.8
133.6
118.5
17.7
507.4
540.0
133.7
118.3
16.0
519.7
557.2
138.1
124.5
15.8
512.3
7 Current liabilities
451.6
494.7
549.4
665.5
809.1
877.2
910.9
908.1
951.1
962.3
8 Notes and accounts payable
9 Other
264.2,/
187.4
281.9
212.8
313.2
236.2
373.7
291.7
456.3
352.8
498.3
378.9
504.0
406.9
500.8
407.2
529.1
422.0
541.3
421.0
307.4
332.2
352.7
364.6
391.8
404.4
410.3
409.3
398.1
399.1
1.681
1.672
1.642
1.548
1.484
1.461
1.450
1.451
1.419
1,415
Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other
10 Net working capital
11 MEMO: Current ratio
1
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.
NOTE. For a description of this series, see "Working Capital of Nonfinancial
C o r p o r a t i o n s " in t h e J u l y 1978 BULLETIN, p p . 5 3 3 - 3 7 .
1.51
SOURCE. Federal Trade Commission.
TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1982
1981
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
Railroad
Air
Other
Public utilities
Electric
Gas and other
Trade and services
Communication and other 2
1980
1981
Q21
Q3
Q4
Q1
Q2 1
Q3 1
Q4 1
295.63
321.49
328.60
316.73
328.25
327.83
327.72
323.75
328.04
334.78
58.91
56.90
61.84
64.95
61.17
66.12
63.10
62.40
62.58
67.53
60.78
66.14
60.84
67.48
60.67
65.02
61.44
67.11
61.82
65.19
13.51
16.86
17.24
16.80
17.55
16.81
17.60
16.33
16.71
18.29
4.25
4.01
3.82
4.24
3.81
4.00
4.66
3.84
4.07
4.38
3.29
4.04
4.18
3.34
4.09
4.18
4.82
4.12
4.56
3.20
4.23
4.61
3.39
4.00
4.92
4.12
3.93
4.55
4.66
4.13
28.12
7.32
81.79
36.99
29.74
8.65
86.33
41.06
31.30
8.25
88.79
43.15
29.32
8.53
85.88
39.02
30.54
9.01
87.55
41.89
31.14
8.60
88.33
42.92
30.95
9.17
87.80
41.89
31.90
8.13
87.62
42.08
30.65
7.60
88.07
43.48
31.67
8.38
91.16
44.94
1. Anticipated by business.
2. "Other" consists of construction; social services and membership organizations; and forestry, fisheries, and agricultural services.
1982
SOURCE. Survey of Current Business (U.S. Dept. of Commerce).
Corporate Finance
1.52
DOMESTIC FINANCE COMPANIES
A39
Assets and Liabilities
Billions of dollars, end of period
1981
Account
1977
1976
1979
1978
1982
1980
Q2
Q1
Q4R
Q3
Q1
ASSETS
Accounts receivable, gross
1 Consumer
2 Business
3
Total
4 LESS: Reserves for unearned income and losses . . . .
5 Accounts receivable, net
6 Cash and bank deposits
7 Securities
8 All other
Total assets
9
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
73.6
72.3
145.9
23.3
122.6
76.1
72.7
148.7
24.3
124.5
79.0
78.2
157.2
25.7
131.4
84.5
76.9
161.3
27.7
133.6
85.5
80.6
166.1
28.9
137.2
85.1
80.9
166.0
29.1
136.9
24.9 1
27.5
30.8
31.6
34.5
34.2
35.0
89.2
104.3
122.4
140.9
150.1
155.3
163.0
168.1
171.4
171.9
6.3
23.7
5.9
29.6
6.5
34.5
8.5
43.3
13.2
43.4
13.1
44.2
14.4
49.0
14.7
51.2
15.4
51.2
15.4
46.2
5.4
32.3
8.1
6.2
36.0
11.5
8.1
43.6
12.6
8.2
46.7
14.2
7.5
52.4
14.3
8.2
51.6
17.3
8.5
52.6
17.0
11.9
50.7
17.1
9.6
54.8
17.8
9.0
59.0
19.0
LIABILITIES
10 Bank loans
Commercial paper
Debt
12
Short-term, n.e.c
13
Long-term, n.e.c
14 Other
11
15
Capital, surplus, and undivided profits
13.4
15.1
17.2
19.9
19.4
20.9
21.5
22.4
22.8
23.3
16
Total liabilities and capital
89.2
104.3
122.4
140.9
150.1
155.3
163.0
168.1
171.4
171.9
1. Beginning Q1 1979, asset items on lines 6, 7, and 8 are combined.
NOTE. Components may not add to totals due to rounding.
1.53
DOMESTIC FINANCE COMPANIES
Business Credit
Millions of dollars, seasonally adjusted except as noted
Type
Accounts
receivable
outstanding
Mar. 31,
19821
Changes in accounts
receivable
Extensions
Repayments
1982
1982
1982
Jan.
Feb.
Mar.
Jan.
Feb.
Mar.
Jan.
Feb.
Mar.
1 Total
80,890
119
652
-418
17,496
19,436
18,148
17,377
18,784
18,566
2
3
4
5
11,509
12,661
27,651
14
-70
-60
168
-351
804
34
-634
384
873
4,565
1,566
1,076
5,420
1,919
962
3,916
1,538
859
4,635
1,626
908
5,771
1,115
928
4,550
1,154
8,985
20,084
258
-23
-52
83
140
-342
8,565
1,927
8,939
2,082
9,774
1,958
8,307
1,950
8,991
1,999
9,634
2,300
Retail automotive (commercial vehicles)
Wholesale automotive
Retail paper on business, industrial, and farm equipment....
Loans on commercial accounts receivable and factored commercial accounts receivable
6 All other business credit
1. Not seasonally adjusted.
A40
1.54
DomesticNonfinancialStatistics • June 1982
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1981
Item
1979
1980
1982
1981
Nov.
Oct.
Dec.
Jan.
Feb.
Mar.
Apr.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
6
Conventional mortgages on new homes
Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount) 2
Contract rate (percent per annum)
Yield (percent per annum)
7 FHLBB series3
8 HUD series4
74.4
53.3
73.9
28.5
1.66
10.48
83.4
59.2
73.2
28.2
2.09
12.25
90.4
65.3
74.8
27.7
2.67
14.16
89.2
63.5
73.0
27.4
2.86
15.04
84.5
62.7
77.3
23.4
2.52
15.68
88.7
64.4
75.3
27.7
2.87
15.23
102.6
71.3
73.5
27.4
2.55
14.66
97.3
71.1
76.5
28.1
3.01
14.44
90.0'
65.4'
75.7'
27.4'
2.90'
14.93'
95.1
70.6
77.7
28.8
3.26
15.08
10.77
11.15
12.65
13.95
14.74
16.52
15.65
18.05
16.38
16.95
15.87
17.00
15.25
17.30
15.12
17.20
15.67'
16.80
15.78
16.65
10.87
10.22
13.42
12.55
16.29
15.29
17.43
16.54
15.98
15.10
16.43
15.51
17.38
16.19
17.10
16.21
16.41
15.54
16.31
15.40
11.17
11.77
14.11
14.43
16.70
16.64
18.13
18.61
16.64
17.20
16.92
16.95
17.80
17.33
18.00
17.91
17.29
17.09
0.0
16.66
SECONDARY MARKETS
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
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
13 Total
14 FHA/VA-insured
15 Conventional
48,050'
33,673
14,377
55,104
37,364
17,724
58,675
39,342
19,334
60,489
40,043
20,445
60,949
40,056
20,885
61,412
39,997
21,435
61,721
39,937
21,784
62,112
39,926
22,185
62,544
39,893
22,654
63,132
39,834
23,298
Mortgage transactions (during period)
16 Purchases
17 Sales
10,812
0
8,099
0
6,112
2
1,000
0
594
0
655
0
430
0
519
0
604
0
755
0
10,179
6,409
8,083
3,278
9,331
3,717r
533
3,447
560
3,354
1,272
3,717'
813
3,536
1,174
3,857
1,903'
4,990'
8,860.4
3,920.9
8,605.4
4,002.0
2,487.2
1,478.0
66.3
37.3
79.0
34.4
59.2
27.0
41.5
30.8
41.7
23.4
45.7
29.6
7.0
0.0
4,495.3
2,343.6
3,639.2
1,748.5
2,524.7
1,392.3
43.2
27.5
147.7
63.1
84.4
48.0
31.7
11.5
28.6
13.6
65.0
32.3
29.5
22.0
Mortgage holdings (end of period)9
24 Total
25 FHA/VA
26 Conventional
3,543
1,995
1,549
4,362
2,116
2,246
5,245
2,236
3,010
5,469
2,267
3,202
5,283
2,232
3,051
5,255
2,227
3,028
5,240
2,209
3,032
5,342
2,218
3,124
5,320
2,227
3,094
5,274
2,226
3,048
Mortgage transactions (during period)
27 Purchases
28 Sales
5,717
4,544
3,723
2,527
3,789
3,531
290
244
416
596
1,140
1,158
1,628
1,629'
1,228
1,115
1,479
1,564
2,143
2,177
Mortgage commitments10
29 Contracted (during period)
30 Outstanding (end of period)
5,542
797
3,859
447
6,974
3,518
1,834
2,863
2,011
4,451
203
3,518
328
5,033
565
4,336
2,523
5,461
2,824
6,041
8
Mortgage commitments
18 Contracted (during period)
19 Outstanding (end of period)
Auction of 4-month commitments to buy
Government-underwritten loans
Offered
Accepted
Conventional loans
22 Offered
23 Accepted
20
21
2,482
6,586
FEDERAL HOME LOAN MORTGAGE CORPORATION
1. Weighted averages based on sample surveys of mortgages originated by major
institutional lender groups. Compiled by the Federal Home Loan Bank Board in
cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the borrower
or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages,
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 secondary market. Any gaps in data are due to periods of adjustment to changes in
maximum permissible contract rates.
6. Average net yields to investors on Government National Mortgage Association guaranteed, mortgage-backed, fully modified pass-through securities,
assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying
the prevailing ceiling rate. Monthly figures are unweighted averages of Monday
quotations for the month.
7. Average gross yields (before deduction of 38 basis points for mortgage servicing) on accepted bids in Federal National Mortgage Association's auctions of
4-month commitments to purchase home mortgages, assuming prepayment in 12
years for 30-year mortgages. No adjustments are made for FNMA commitment
fees or stock related requirements. Monthly figures are unweighted averages for
auctions conducted within the month.
8. Includes some multifamily and nonprofit hospital loan commitments in addition to 1- to 4-family loan commitments accepted in FNMA's free market auction
system, and through the FNMA-GNMA tandem plans.
9. Includes participation as well as whole loans.
10. Includes conventional and government-underwritten loans.
Real Estate Debt
1.55
A41
MORTGAGE D E B T OUTSTANDING
Millions of dollars, end of period
1981
Type of holder, and type of property
1979
1980
Q1
1
2
3
4
5
All holders
1- to 4-family
Multifamily
Commercial
Farm
1982
1981
Q2
Q3
Q4
Ql'
1,544,784r
1,021,140'
141,271'
280,566'
101,807
1,468,053
974,411
137,946
261,242
94,454
1,499,066
993,793'
139,199
268,562'
97,512
1,525,599'
1,010,838'
140,010'
274,719'
100,032
1,544,784'
1,021,140'
141,271'
280,566'
101,807
1,559,620
1,029,059
142,686
284,099
103,776
1,044,037
286,626
172,549
14,905
90,717
8,455
100,015
68,200
15,962
15,813
40
1,007,240
266,734
161,758
13,282
83,133
8,561
99,719
67,619
15,955
16,105
40
1,023,793
273,225
164,873
13,800
86,091
8,461
99,993
68,035
15,909
15,999
50
1,036,880
281,126
169,378
14,478
88,836
8,434
99,994
68,116
15,939
15,909
30
1,044,037
286,626
172,549
14,905
90,717
8,455
100,015
68,200
15,962
15,813
40
1,045,187
291,426
175,326
15,126
92,499
8,475
98,500
67,086
15,611
15,763
40
1,326,785
880,369
128,167
235,572
82,677
1,445,966
961,340
136,953
255,655
92,018
6 Major financial institutions
7 Commercial banks1
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
12 Mutual savings banks
13
1- to 4-family
14
Multifamily
15
Commercial
16
Farm
938,567
245,187
149,460
11,180
75,957
8,590
98,908
66,140
16,557
16,162
49
997,168
263,030
160,326
12,924
81,081
8,699
99,865
67,489
16,058
16,278
40
17
18
19
20
Savings and loan associations
1- to 4-family
Multifamily
Commercial
475,688
394,345
37,579
43,764
503,192
419,763
38,142
45,287
518,350
432,978'
37,684'
47,688'
507,556
423,606
38,219
45,731
515,256
430,702'
38,077
46,477'
518,778
433,750'
37,975'
47,053'
518,350
432,978'
37,684'
47,688'
515,125
430,084
37,450
47,591
21
22
23
24
25
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
118,784
16,193
19,274
71,137
12,180
131,081
17,943
19,514
80,666
12,958
139,046
17,382
19,486
89,089
13,089
133,231
17,847
19,579
82,839
12,966
135,319
17,646
19,603
85,038
13,032
136,982
17,512
19,592
86,742
13,136
139,046
17,382
19,486
89,089
13,089
140,136
17,332
19,674
90,105
13,025
97,084
3,852
763
3,089
114,300
4,642
704
3,938
126,112
4,765
693
4,072
116,243
4,826
696
4,130
119,124
4,972
698
4,274
121,772
4,382
696
3,686
126,112
4,765
693
4,072
128,725
4,438
689
3,749
26 Federal and related agencies
27 Government National Mortgage Association
28
1- to 4-family
29
Multifamily
30
31
32
33
34
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
1,274
417
71
174
612
3,492
916
610
411
1,555
2,235
914
473
506
342
2,837
1,321
528
479
509
2,662
1,151
464
357
690
1,562
500
242
325
495
2,235
914
473
506
342
2,469
715
615
499
640
35
36
37
Federal Housing and Veterans Administration
1- to 4-family
Multifamily
5,555
1,955
3,600
5,640
2,051
3,589
5,999
2,289
3,710
5,799
2,135
3,664
5,895
2,172
3,723
6,005
2,240
3,765
5,999
2,289
3,710
6,007
2,267
3,740
38
39
40
Federal National Mortgage Association
1- to 4-family
Multifamily
51,091
45,488
5,603
57,327
51,775
5,552
61,412
55,986
5,426
57,362
51,842
5,520
57,657
52,181
5,476
59,682
54,227
5,455
61,412
55,986
5,426
62,544
57,142
5,402
41
42
43
Federal Land Banks
1- to 4-family
Farm
31,277
1,552
29,725
38,131
2,099
36,032
46,446
2,788
43,658
40,258
2,228
38,030
42,681
2,401
40,280
44,708
2,605
42,103
46,446
2,788
43,658
47,947
2,874
45,073
44
45
46
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
4,035
3,059
976
5,068
3,873
1,195
5,255
4,018
1,237
5,161
3,953
1,208
5,257
4,025
1,232
5,433
4,166
1,267
5,255
4,018
1,237
5,320
4,075
1,245
119,278
76,401
74,546
1,855
142,258
93,874
91,602
2,272
162,273
105,790
103,007
2,783
147,246
97,184
94,810
2,374
152,308
100,558
98,057
2,501
158,140
103,750
101,068
2,682
162,273
105,790
103,007
2,783
169,559
108,645
105,769
2,876
47 Mortgage pools or trusts2
48 Government National Mortgage Association
49
1- to 4-family
50
Multifamily
51
52
53
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
15,180
12,149
3,031'
16,854
13,471
3,383
19,843
15,888
3,955
17,067
13,641
3,426
17,565
14,115
3,450
17,936
14,401
3,535
19,843
15,888
3,955
23,959
18,995
4,964
54
55
56
57
58
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
27,697
14,884
2,163
4,328
6,322
31,530
16,683
2,612
5,271
6,964
36,640
18,378
3,426
6,161
8,675
32,995
16,640
2,853
5,382
8,120
34,185
17,165
3,097
5,750
8,173
36,454
18,407
3,488
6,040
8,519
36,640
18,378
3,426
6,161
8,675
36,955
18,740
3,447
6,351
8,417
171,856
99,418
23,189
24,050
25,199
192,240
112,645
27,164
26,661
25,770
212,362'
126,070'
28,152'
30,592'
27,548
197,324
116,315
27,208
27,573
26,228
203,841
120,572
27,593
28,850
26,826
208,807'
123,772'
27,906'
29,814'
27,315
212,362'
126,070'
28,152'
30,592'
27,548
216,149
127,965
28,787
31,291
28,106
59 Individual and others 3
60 1- to 4-family
61 Multifamily
62 Commercial
63 Farm
1. Includes loans held by nondeposit trust companies but not bank trust departments.
2. Outstanding principal balances of mortgages backing securities insured or
guaranteed by the agency indicated.
3. 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 for which
separate data are not readily available.
NOTE. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve in conjunction with the
Federal Home Loan Bank Board and the Department of Commerce. Separation
of nonfarm mortgage debt by type of property, if not reported directly, and interpolations and extrapolations when required, are estimated mainly by the Federal
Reserve. Multifamily debt refers to loans on structures of five or more units.
A42
1.56
DomesticNonfinancialStatistics • June 1982
CONSUMER INSTALLMENT CREDIT 1 Total Outstanding, and Net Change
Millions of dollars
1982
Holder, and type of credit
1979
1980
1981
Feb.
Mar.
Amounts outstanding (end of period)
1 Total
312,024
313,472
333,375
330,135
327,435
327,131
328,363
By major holder
Commercial banks
Finance companies
Credit unions
Retailers2
Savings and loans
Gasoline companies
Mutual savings banks...
154,177
68,318
46,517
28,119
8,424
3,729
2,740
147,013
76,756
44,041
28,448
9,911
4,468
2,835
149,300
89,818
45,954
29,551
11,598
4,403
2,751
148,162
88,925
45,907
28,179
11,668
4,541
2,753
146,922
89,009
45,586
27,013
11,738
4,433
2,734
146,454
89,591
45,632
26,530
11,926
4,229
2,769
146,616
90,674
45,450
26,537
12,081
4,227
2,778
By major type of credit
9 Automobile
10 Commercial banks . . .
11
Indirect paper
12
Direct loans
13 Credit unions
14 Finance companies...
116,362
67,367
38,338
29,029
22,244
26,751
116,838
61,536
35,233
26,303
21,060
34,242
126,431
59,181
35,097
24,084
21,975
45,275
125,525
58,849
35,029
23,820
21,953
44,723
125,294
58,604
34,920
23,684
21,799
44,891
125,559
58,510
34,888
23,622
21,821
45,228
126,201
58,458
34,920
23,538
21,733
46,010
15 Revolving
16 Commercial banks . . ,
17 Retailers
18 Gasoline companies..
56,937
29,862
23,346
3,729
58,352
29,765
24,119
4,468
63,049
33,110
25,536
4,403
61,433
32,643
24,249
4,541
59,514
31,923
23,158
4,433
58,491
31,532
22,730
4,229
58,641
31,638
22,776
4,227
19 Mobile home
20 Commercial banks . . .
21 Finance companies...
22 Savings and loans
23 Credit unions
16,838
10,647
3,390
2,307
494
17,322
10,371
3,745
2,737
469
18,486
10,300
4,494
3,203
489
18,397
10,206
4,481
3,222
488
18,343
10,111
4,506
3,241
485
18,363
10,037
4,548
3,293
486
18,402
9,974
4,608
3,336
484
24 Other
25 Commercial banks . . .
26 Finance companies...
27 Credit unions
28 Retailers
29 Savings and loans
30 Mutual savings banks.
121,887
46,301
38,177
23,779
4,773
6,117
2,740
120,960
45,341
38,769
22,512
4,329
7,174
2,835
125,409
46,709
40,049
23,490
4,015
8,395
2,751
124,780
46,464
39,721
23,466
3,930
8,446
2,753
124,284
46,284
39,612
23,302
3,855
8,497
2,734
124,718
46,375
39,815
23,326
3,800
8,633
2,769
125,119
46,546
40,056
23,233
3,761
8,745
2,778
2
3
4
5
6
7
8
Net change (during period)3
31 Total
38,381
1,448
19,894
443
75
990
1,175
By major holder
Commercial banks
Finance companies
Credit unions
Retailers2
Savings and loans
Gasoline companies
Mutual savings banks...
18,161
14,020
2,185
2,132
1,327
509
47
-7,163
8,438
-2,475
329
1,485
739
95
2,284
13,062
1,913
1,103
1,682
-65
-85
10
-597
689
27
172
39
103
-171
307
-135
-124
173
36
-11
166
673
-122
171
251
-150
1
96
544
132
181
205
-6
23
By major type of credit
39 Automobile
40 Commercial banks . . ,
41
Indirect paper
42
Direct loans
43 Credit unions
44 Finance companies..,
14,715
6,857
4,488
2,369
1,044
6,814
477
-5,830
-3,104
-2,726
-1,184
7,491
9,595
-2,355
-136
-2,219
914
11,033
-121
103
232
-129
345
-569
-56
-180
-141
-39
-59
183
-28
-248
-130
-118
-55
275
233
-159
2
-161
54
338
45 Revolving
46 Commercial banks . . .
47 Retailers
48 Gasoline companies..
8,628
5,521
2,598
509
1,415
-97
773
739
4,697
3,345
1,417
-65
-196
-276
41
39
-155
-65
-126
36
307
296
161
-150
499
285
220
-6
49 Mobile home
50 Commercial banks . . .
51 Finance companies...
52 Savings and loans
53 Credit unions
1,603
1,102
238
240
23
483
-276
355
430
-25
1,161
-74
749
466
20
-26
-74
6
30
12
-44
-110
56
14
-4
15
-82
52
47
-2
51
-48
53
43
3
54 Other
55 Commercial banks . . .
56 Finance companies...
57 Credit unions
58 Retailers
59 Savings and loans
60 Mutual savings banks.
13,435
4,681
6,968
1,118
-466
1,087
47
-927
-960
592
-1,266
-444
1,056
95
4,441
1,368
1,280
975
-314
1,217
-85
786
257
-34
332
-14
142
103
330
184
68
-72
2
159
-11
696
200
346
-65
10
204
1
392
18
153
75
-39
162
23
32
33
34
35
36
37
38
1. The Board's series cover most short- and intermediate-term credit extended
to individuals through regular business channels, usually to finance the purchase
of consumer goods and services or to refinance debts incurred for such purposes,
and scheduled to be repaid (or with the option of repayment) in two or more
installments.
2. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
3. Net change equals extensions minus liquidations (repayments, charge-offs and
other credit); figures for all months are seasonally adjusted.
NOTE: Total consumer noninstallment credit outstanding—credit scheduled to
be repaid in a lump sum, including single-payment loans, charge accounts, and
service credit—amounted to, not seasonally adjusted $71.3 billion at the end of
1979, $74.8 billion at the end of 1980, and $80.2 billion at the end of 1981
Consumer Debt
1.57
A43
CONSUMER INSTALLMENT CREDIT Extensions and Liquidations
Millions of dollars; monthly data are seasonally adjusted.
1982
TT
U
^
e
Jan.
Feb.
Mar.
Apr.
Extensions
2
3
4
5
6
7
8
By major holder
Commercial banks
Finance companies
Credit unions
Retailers1
Savings and loans
Gasoline companies
Mutual savings banks
By major type of credit
9 Automobile
10 Commercial banks
11
Indirect paper
12
Direct loans
13 Credit unions
14 Finance companies
15 Revolving
20
21
Commercial banks
Finance companies
24 Other
26
27
28
29
30
Finance companies
Credit unions
Retailers
Savings and loans
Mutual savings banks
324,777
306,076
336,341
26,888
27,150
27,462
28,648
154,733
61,518
34,926
47,676
5,901
18,005
2,018
134,960
60,801
29,594
49,942
6,621
22,253
1,905
146,186
66,344
35,444
53,430
8,142
24,902
1,893
11,775
4,433
3,326
4,385
716
2,000
253
12,431
4,857
2,695
4,254
754
2,007
152
12,519
5,002
2,631
4,536
788
1,835
151
12,790
5,343
3,010
4,618
823
1,915
185
93,901
53,554
29,623
23,931
17,397
22,950
83,454
41,109
22,558
18,551
15,294
27,051
94,404
42,792
24,941
17,851
18,084
33,527
7,474
3,696
2,293
1,403
1,702
2,076
7,283
3,415
1,875
1,540
1,363
2,505
7,183
3,393
1,875
1,518
1,420
2,370
7,871
3,499
2,079
1,420
1,542
2,830
120,174
61,048
41,121
18,005
128,068
61,593
44,222
22,253
140,135
67,370
47,863
24,902
11,070
5,135
3,935
2,000
11,730
5,928
3,795
2,007
12,143
6,235
4,073
1,835
12,416
6,309
4,192
1,915
6,471
4,542
797
948
184
5,093
2,937
898
1,146
113
6,028
3,106
1,313
1,432
176
434
188
99
122
25
364
136
117
102
9
411
156
120
126
9
544
253
122
151
18
104,231
35,589
37,771
17,345
6,555
4,953
2,018
89,461
29,321
32,852
14,187
5,720
5,476
1,905
95,774
32,918
31,504
17,182
5,567
6,710
1,893
7,910
2,756
2,258
1,599
450
594
253
7,773
2,952
2,235
1,323
459
652
152
7,725
2,735
2,512
1,202
463
662
151
7,853
2,729
2,391
1,450
426
672
185
Liquidations
By major holder
32 Commercial banks
33 Finance companies
35 Retailers1
37 Gasoline companies
38 Mutual savings banks
By major type of credit
39 Automobile
43
48
Credit unions
Gasoline companies
1. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
286,396
304,628
316,447
26,445
27,075
26,472
27,509
136,572
47,498
32,741
45,544
4,574
17,496
1,971
142,123
52,363
32,069
49,613
5,136
21,514
1,810
143,902
53,282
33,531
52,327
6,640
24,967
1,978
11,765
5,030
2,637
4,358
544
1,961
150
12,602
4,550
2,830
4,378
581
1,971
163
12,353
4,329
2,753
4,365
537
1,985
150
12,694
4,799
2,878
4,437
618
1,921
162
79,186
46,697
25,135
21,562
16,353
16,136
82,977
46,939
25,662
21,277
16,478
19,560
84,809
45,147
25,077
20.070
17,169
22,494
7,595
3,593
2,061
1,532
1,357
2,645
7,339
3,595
2,016
1,579
1,422
2,322
7,211
3,641
2,005
1,636
1,475
2,095
7,638
3,658
2,077
1,581
1,488
2,492
111,546
55,527
38,523
17,496
126,653
61,690
43,449
21,514
135,438
64.025
46,446
24,967
11,266
5,411
3,894
1,961
11,885
5,993
3,921
1,971
11,836
5,939
3,912
1,985
11,917
6,024
3,972
1,921
4,868
3,440
559
708
161
4,610
3,213
543
716
138
4,867
3,180
564
966
156
460
262
93
92
13
408
246
61
88
13
396
238
68
79
11
493
301
69
108
15
90,796
30,908
30,803
16,227
7,021
3,866
1,971
90,388
30,281
32,260
15,453
6,164
4,420
1,810
91,333
31,550
30,224
16,207
5,881
5,493
1,978
7,124
2,499
2,292
1,267
464
452
150
7,443
2,768
2,167
1,395
457
493
163
7,029
2,535
2,166
1,267
453
458
150
7,461
2,711
2,238
1,375
465
510
162
A44
1.58
Domestic Financial Statistics • June 1982
FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1979
Transaction category, sector
1976
1977
1978
1979
1980
1980
1981
1981'
HI
H2
HI
H2
HI'
H2 r
Nonfinancial sectors
1 Total funds raised
2 Excluding equities
By sector and instrument
3 U.S. government
4 Treasury securities
5 Agency issues and mortgages
6 All other nonfinancial sectors
7 Corporate equities
8 Debt instruments
9 Private domestic nonfinancial sectors
1U
Corporate equities
11
Debt instruments
12
Debt capital instruments
13
State and local obligations
14
Corporate bonds
Mortgages
15
Home mortgages
16
Multifamily residential
17
Commercial
18
Farm
19
Other debt instruments
2U
Consumer credit
21
Bank loans n.e.c
22
Open market paper
23
Other
24
25
2b
27
28
29
30
31
32
33
34
35
36
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
Foreign
Corporate equities
Debt instruments
Bonds
Bank loans n.e.c
Open market paper
U.S. government loans
273.6
262.8
336.6
333.5
395.6
396.3
387.0
394.0
371.9
357.0
376.0
387.4
385.0
394.7
389.0
393.3
339.0
330.1
404.9
383.8
418.4
416.9
333.6
358.0
69.0
69.1
-.1
204.6
10.8
193.8
185.0
10.5
174.5
123.7
15.7
22.8
56.8
57.6
-.9
279.9
3.1
276.7
266.0
2.7
263.2
172.2
21.9
21.0
53.7
55.1
-1.4
342.0
-.6
342.6
308.7
-.1
308.8
193.7
26.1
20.1
37.4
38.8
-1.4
349.6
-7.1
356.7
328.6
-7.8
336.4
200.1
21.8
21.2
79.2
79.8
-.6
292.7
15.0
277.8
263.4
12.9
250.6
179.4
26.9
30.4
87.4
87.8
-.5
288.6
-11.5
300.1
264.1
-11.5
275.6
147.8
25.8
20.2
30.0
32.3
-2.3
355.0
-9.8
364.7
341.0
-9.6
350.6
203.0
20.9
21.7
44.7
45.2
-.5
344.3
-4.3
348.6
316.1
-6.1
322.2
197.2
22.7
20.7
66.5
67.2
-.6
272.5
8.9
263.6
241.3
6.9
234.4
177.0
21.6
35.3
91.9
92.4
-.6
313.0
21.0
292.0
285.6
18.8
266.2
181.9
32.1
25.6
86.1
86.7
-.5
332.3
1.5
330.7
297.1
.9
296.2
171.1
28.8
22.8
88.6
89.0
-.4
244.9
-24.5
269.4
231.2
-23.8
255.0
124.5
22.8
17.6
64.0
3.9
11.6
5.7
50.7
25.4
4.4
4.0
16.9
96.3
7.4
18.5
7.1
91.0
40.2
26.7
2.9
21.3
108.5
9.4
22.1
7.5
115.1
47.6
37.1
5.2
25.1
113.7
7.8
24.4
11.3
136.3
46.3
49.2
11.1
29.7
81.7
8.5
22.4
9.5
71.1
2.3
37.3
6.6
24.9
62.2
4.6
25.3
9.8
127.8
25.3
50.1
19.2
33.2
117.6
8.0
23.4
11.6
147.6
50.9
55.5
8.0
33.1
109.8
7.6
25.4
11.0
125.0
41.6
42.8
14.2
26.4
76.5
8.2
24.8
10.6
57.4
-5.1
13.5
24.8
24.1
87.0
8.8
19.9
8.4
84.9
9.7
61.2
-11.6
25.6
77.3
5.0
28.4
8.9
125.1
29.5
42.0
16.0
37.6
47.2
4.2
22.1
10.7
130.4
21.1
58.3
22.3
28.7
185.0
15.2
89.6
10.2
5.7
64.3
266.0
17.3
139.1
12.3
12.7
84.6
308.7
20.9
164.3
15.0
15.3
93.2
328.6
18.4
170.6
20.8
14.0
104.8
263.4
25.3
101.7
14.5
15.8
106.1
264.1
23.1
103.6
16.4
13.8
107.3
341.0
17.9
179.1
21.2
13.5
109.3
316.1
18.9
162.1
20.4
14.5
100.2
241.3
19.7
94.2
17.9
11.0
98.4
285.6
30.9
109.1
11.1
20.6
113.8
297.1
26.2
124.3
22.7
16.1
107.8
231.2
20.0
82.8
10.0
11.6
106.7
19.6
.3
19.3
8.6
5.6
1.9
3.3
13.9
.4
13.5
5.1
3.1
2.4
3.0
33.2
-.5
33.8
4.2
19.1
6.6
3.9
21.0
.8
20.3
3.9
2.3
11.2
3.0
29.3
2.1
27.2
.8
11.5
10.1
4.7
24.4
24.5
5.6
.8
13.9
4.2
14.0
-.2
14.1
2.8
2.1
6.1
3.1
28.1
1.7
26.4
4.9
2.4
16.3
2.8
31.2
1.9
29.2
2.0
6.1
15.7
5.4
27.4
2.2
25.2
-.4
17.0
4.5
4.0
35.1
.6
34.5
3.3
5.7
20.6
4.9
13.8
-.7
14.4
7.8
-4.1
7.1
3.6
*
Financial sectors
37 Total funds raised
38
39
40
41
42
43
44
45
46
47
48
49
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
Private financial sectors
Corporate equities
Debt instruments
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper and RPs
Loans from Federal Home Loan Banks
By sector
50 Sponsored credit agencies
51 Mortgage pools
52 Private financial sectors
53 Commercial banks
54 Bank affiliates
55 Savings and loan associations
56 Other insurance companies
57 Finance companies
58 REITs
59 Open-end investment companies
23.4
51.4
76.8
84.3
66.7
88.6
87.8
80.8
59.8
73.5
92.6
84.6
15.1
3.3
12.2
-.4
8.2
-.2
8.4
9.8
2.1
-3.7
2.2
-2.0
21.9
7.0
16.1
-1.2
29.5
2.6
26.9
10.1
3.1
-.3
9.6
4.3
36.7
23.1
13.6
0
40.1
1.8
38.3
7.5
.9
2.8
14.6
12.5
48.2
24.3
24.0
0
36.0
2.5
33.6
7.8
-1.2
-.4
18.2
9.2
43.0
24.4
18.6
0
23.7
6.2
17.5
7.1
-.9
-.5
4.6
7.1
44.4
30.1
14.3
0
44.2
8.3
35.9
-.8
-2.9
2.5
20.9
16.2
43.7
21.2
22.5
0
44.1
3.6
40.6
8.2
.3
-1.4
25.4
8.2
52.8
27.3
25.5
0
28.0
1.4
26.6
7.5
-2.6
.6
10.9
10.1
44.7
25.1
19.6
0
15.2
7.1
8.1
10.1
-5.8
-.8
4.6
41.3
23.7
17.6
0
32.2
5.2
27.0
4.2
4.0
-.9
10.1
9.6
40.6
24.0
16.5
0
52.0
9.7
42.3
-2.0
-2.9
4.6
24.6
18.0
48.2
36.1
12.1
0
36.4
7.0
29.4
.3
-2.9
.3
17.3
14.5
2.9
12.2
8.2
2.3
5.4
.1
.9
4.3
-2.2
-2.4
5.8
16.1
29.5
1.1
2.0
9.9
1.4
16.9
-2.3
.4
23.1
13.6
40.1
1.3
7.2
14.3
.8
18.1
-1.1
-.5
24.3
24.0
36.0
1.6
6.5
11.4
.9
16.8
-.4
-.6
24.4
18.6
23.7
.5
6.9
6.9
.9
5.8
-1.7
4.4
30.1
14.3
44.2
.4
8.3
13.1
.9
14.4
-.7
7.8
21.2
22.5
44.1
1.3
8.0
11.1
.9
22.7
-.6
.7
27.3
25.5
28.0
1.8
4.9
11.7
.9
10.9
-.2
-1.9
25.1
19.6
15.2
.8
5.8
-1.4
.9
5.2
-1.4
5.3
23.7
17.6
32.2
.3
8.0
15.2
.9
6.3
-2.0
3.4
24.0
16.5
52.0
.2
6.9
17.2
.9
18.3
-.8
9.3
36.1
12.1
36.4
5
9.7
8.9
.9
10.6
-.5
6.3
»
All sectors
60 Total funds raised, by instrument
297.0
388.0
472.5
471.3
438.6
464.6
472.8
469.7
398.8
478.4
511.0
418.2
61 Investment company shares
62 Other corporate equities
63 Debt instruments
64 U.S. government securities
65 State and local obligations
66 Corporate and foreign bonds
bl
Mortgages
68 Consumer credit
69 Bank loans n.e.c
;o Open market paper and RPs
n
Other loans
-2.4
13.1
286.4
84.6
15.7
41.2
87.2
25.4
6.2
8.1
17.8
.4
5.3
382.3
79.9
21.9
36.1
132.3
40.2
29.5
15.0
27.4
-.5
1.7
471.3
90.5
26.1
31.8
148.3
47.6
59.0
26.4
41.5
-.6
-4.0
475.8
85.7
21.8
32.8
155.9
46.3
51.0
40.5
41.9
4.4
16.8
417.5
122.3
26.9
38.4
121.1
2.3
48.4
21.4
36.7
7.8
-11.0
467.7
131.9
25.8
24.9
98.8
25.3
53.4
54.0
53.7
.7
-6.9
479.0
73.8
20.9
32.6
160.6
50.9
56.2
39.5
44.4
-1.9
-1.0
472.6
97.6
22.7
33.0
151.1
41.6
45.8
41.5
39.3
5.3
10.7
382.9
111.3
21.6
47.4
114.2
-5.1
19.6
39.7
34.1
3.4
22.8
452.1
133.2
32.1
29.5
128.0
9.7
77.2
3.1
39.3
9.3
1.9
499.8
126.8
28.8
24.1
116.6
29.5
52.3
61.3
60.5
6.3
-23.8
435.6
136.9
22.8
25.7
81.1
21.1
54.5
46.7
46.8
Flow of Funds
1.59
A45
DIRECT A N D INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates
1979
Transaction category, or sector
1 Total funds advanced in credit markets to nonfinancial sectors
1977
1976
1978
1979
1980
1980
1981
1981'
HI
H2
HI
H2
HI'
H2'
262.8
333.5
396.3
394.0
357.0
387.4
394.7
393.3
330.1
383.8
416.9
358.0
49.8
23.1
12.3
-2.0
16.4
79.2
34.9
20.0
4.3
20.1
101.9
36.1
25.7
12.5
27.6
74.0
-6.2
36.7
9.2
34.3
92.1
15.6
31.1
7.1
38.2
91.2
17.2
22.7
16.2
35.0
49.6
-27.1
35.7
8.2
32.8
98.5
14.7
37.8
10.1
35.8
102.9
23.2
33.3
4.6
41.7
81.3
8.0
28.9
9.6
34.8
103.6
24.3
20.8
18.0
40.5
78.8
10.1
24.6
14.5
29.6
7.9
16.8
9.8
15.2
15.1
10.0
22.4
7.1
39.6
21.9
17.1
39.9
7.0
38.0
36.7
19.0
53.4
7.7
-6.1
48.2
23.7
43.8
4.5
20.0
43.0
24.1
45.3
9.2
12.6
44.4
19.8
47.8
-.9
-17.2
43.7
18.3
58.9
16.2
5.1
52.8
25.4
42.4
12.1
23.0
44.7
22.1
45.2
-3.1
17.0
41.3
27.7
42.2
-7.3
40.9
40.6
20.5
48.3
25.6
-15.7
48.2
228.1
61.5
15.7
30.5
55.5
62.9
-2.0
276.2
45.1
21.9
22.2
83.7
107.7
4.3
331.0
54.3
26.1
22.4
92.1
148.6
12.5
368.2
91.9
21.8
24.0
84.6
155.1
9.2
307.9
106.7
26.9
26.2
59.1
96.2
7.1
340.6
114.7
25.8
21.0
44.0
151.4
16.2
388.9
101.0
20.9
24.0
89.8
161.4
8.2
347.6
82.9
22.7
24.0
79.5
148.7
10.1
271.9
88.1
21.6
32.5
51.2
83.1
4.6
343.8
125.3
32.1
19.9
66.9
109.3
9.6
353.8
102.6
28.8
19.6
61.4
159.5
18.0
327.5
126.8
22.8
22.5
26.6
143.2
14.5
191.4
59.6
70.5
49.7
11.6
260.9
87.6
82.0
67.8
23.4
302.4
128.7
73.5
75.0
25.2
292.5
121.1
55.9
66.4
49.0
270.3
99.7
58.4
79.8
32.4
302.5
99.8
24.1
81.9
96.7
316.9
130.3
59.6
72.3
54.8
268.0
112.0
52.2
60.5
43.3
246.1
58.5
35.5
89.2
62.8
294.4
140.9
81.3
70.3
1.9
318.9
101.6
38.4
79.3
99.5
286.2
98.0
9.8
84.5
93.9
191.4
124.4
8.4
58.5
-4.7
-.1
34.3
29.0
260.9
138.9
26.9
95.1
1.2
4.3
50.1
39.5
302.4
140.8
38.3
123.2
6.3
6.8
62.2
48.0
292.5
143.2
33.6
115.7
25.6
.4
47.8
41.9
270.3
171.1
17.5
81.6
-22.3
-2.6
64.1
42.4
302.5
204.8
35.9
61.8
-10.4
-1.1
71.4
2.0
316.9
135.1
40.6
141.2
45.6
5.0
52.3
38.4
268.0
151.2
26.6
90.3
5.6
-4.2
43.4
45.4
246.1
158.7
8.1
79.4
-22.8
-2.3
70.0
34.5
294.4
183.6
27.0
83.8
-21.9
-2.8
58.1
50.4
318.9
203.6
42.3
73.0
-6.5
10.8
62.7
6.0
286.2
206.1
29.4
50.7
-14.4
-13.0
80.1
-1.9
45.1
16.4
3.3
11.8
1.9
11.7
42.2
24.1
-.8
-3.8
9.6
13.2
67.0
35.6
1.4
-2.9
16.5
16.4
109.3
62.8
1.4
10.3
11.4
23.5
55.1
32.6
3.1
3.6
-3.8
19.7
74.0
44.8
15.5
-10.4
4.3
19.7
112.5
71.0
2.6
4.6
11.4
22.9
106.1
54.5
.2
16.0
11.4
24.0
33.9
19.3
-1.8
4.8
-4.5
16.0
76.4
45.8
7.9
2.3
-3.1
23.3
77.3
37.1
20.6
-10.2
4.9
24.8
70.7
52.4
10.5
-10.6
3.8
14.6
133.4
7.3
10.4
123.7
-12.0
2.3
1.7
148.5
8.3
17.2
93.5
.2
25.8
2.2
1.3
152.1
9.3
16.3
63.5
6.9
46.6
7.5
2.0
152.6
7.9
19.2
61.7
34.4
21.2
6.6
1.5
182.3
10.3
4.2
80.9
29.2
50.3
6.5
.9
213.7
9.5
16.9
40.7
107.5
36.8
3.0
-.6
149.3
9.0
16.6
66.5
30.2
3.3
18.5
5.2
155.9
6.9
21.9
56.9
38.6
39.1
-5.3
-2.3
167.6
8.5
-1.5
66.7
61.9
26.3
5.3
.4
197.1
12.1
9.9
95.2
-3.4
74.2
7.8
1.3
209.5
4.7
28.9
14.6
104.1
48.3
7.7
1.2
217.9
14.3
4.9
66.8
110.8
25.3
-1.7
-2.5
178.5
190.7
219.1
261.9
237.5
287.7
261.8
262.0
201.5
273.4
286.8
288.6
19.0
83.9
10.5
23.7
94.4
40.8
25.7
91.3
44.3
18.8
79.4
19.5
25.8
87.8
-2.3
23.5
88.8
2.2
12.6
81.5
28.4
25.0
77.1
10.7
31.2
90.5
.2
21.2
85.6
-4.8
24.9
90.1
34.5
22.0
87.4
-30.1
MEMO: Corporate equities not included above
50 Total net issues
51 Mutual fund shares
52
Other equities
10.6
-2.4
13.1
5.7
.4
5.3
1.2
-.5
1.7
-4.6
-.6
-4.0
21.1
4.4
16.8
-3.1
7.8
-11.0
-6.2
.7
-6.9
-2.9
-1.9
-1.0
16.0
5.3
10.7
26.3
3.4
22.8
11.2
9.3
1.9
-17.5
6.3
-23.8
53 Acquisitions by financial institutions
54 Other net purchases
12.5
-1.9
7.4
-1.6
4.5
-3.4
10.6
-15.1
17.7
3.4
22.4
-25.5
7.1
-13.4
14.0
-16.9
10.5
5.5
24.9
1.4
26.4
-15.2
18.4
-35.9
2
3
4
5
6
7
8
9
10
11
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to savings and loans
Other loans and securities
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
Agency borrowing not included in line 1
Private domestic funds advanced
12 Total net advances
13 U.S. government securities
14 State and local obligations
15 Corporate and foreign bonds
16 Residential mortgages
17 Other mortgages and loans
18 LESS: Federal Home Loan Bank advances
Private financial intermediation
19 Credit market funds advanced by private financial institutions
20
Commercial banking
21
Savings institutions
22
Insurance and pension funds
23
Other finance
24 Sources of funds
25
Private domestic deposits
26
Credit market borrowing
27
Other sources
28
Foreign funds
29
Treasury balances
30
Insurance and pension reserves
31
Other, net
Private domestic nonfinancial investors
32 Direct lending in credit markets
33 U.S. government securities
34
State and local obligations
35
Corporate and foreign bonds
36
Commercial paper
37
Other
38 Deposits and currency
39 Currency
40
Checkable deposits
41
Small time and savings accounts
42
Money market fund shares
43 Large time deposits
44
Security RPs
45
Foreign deposits
46 Total of credit market instruments, deposits and
currency
47
48
49
Public support rate (in percent)
Private financial intermediation (in percent)...
Total foreign funds
*
NOTES BY LINE NUMBER.
1.
2.
6.
11.
12.
17.
25.
26.
28.
29.
Line 2 of table 1.58.
Sum of lines 3-6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. Also sum
of lines 27, 32, and 38 less lines 40 and 46.
Includes farm and commercial mortgages.
Line 38 less lines 40 and 46.
Excludes equity issues and investment company shares. Includes line 18.
Foreign deposits at commercial banks, bank borrowings from foreign branches,
and liabilities of foreign banking agencies to foreign affiliates.
Demand deposits at commercial banks.
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.
39. Mainly an offset to line 9.
46. Lines 32 plus 38, or line 12 less line 27 plus 39 and 45.
47. Line 2/line 1.
48. Line 19/line 12.
49. Sum of lines 10 and 28.
50. 52. Includes issues by financial institutions.
NOTE. 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.
A46
2.10
Domestic Nonfinancial Statistics • June 1982
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1981
Measure
1979
1980
1982
1981
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.'
Mar.
Apr.P
May c
1 Industrial production'
152.5
147.0
151.0
153.6
151.6
149.1
146.3
143.4
140.7
142.9
141.7
140.6
140.3
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
150.0
147.2
150.8
142.2
160.5
156.4
146.7
145.3
145.4
145.2
151.9
147.6
150.6
149.5
147.9
151.8
154.4
151.6
152.6
151.5
149.6
154.0
156.8
155.2
151.0
150.0
147.8
152.9
154.6
152.5
149.4
148.9
146.5
152.1
151.4
148.5
147.5
147.2
144.0
151.5
148.7
144.6
146.2
146.3
142.0
152.1
145.9
139.0
142.9
142.8
139.6
147.2
143.4
137.2
144.6
144.1
141.8
147.3
146.3
140.4
143.8
143.4
141.5
145.9
145.2
138.6
143.4
143.2
142.6
144.1
143.8
136.4
143.3
143.3
143.8
142.6
143.5
135.5
153.6
146.7
150.4
153.2
151.1
148.2
145.0
142.0
138.5
140.9
140.2
139.2
139.1
85.7
87.4
79.1
80.0
78.5
79.9
79.6
81.7
78.3
80.0
76.6
77.7
74.8
75.5
73.1
72.4
71.1
71.4
72.2
72.9
71.7
71.8
71.0
70.5
70.8
69.9
121.0
2
3
4
5
6
7
Industry groupings
8 Manufacturing
Capacity utilization (percent)1-2
9 Manufacturing
10 Industrial materials industries . . . .
11 Construction contracts (1977 =
100)3
106.0
107.0
99.0
100.0
101.0
92.0
112.0
115.0
97.0
105.0
n.a.
12 Nonagricultural employment, total4 .
13 Goods-producing, total
14
Manufacturing, total
15
Manufacturing, productionworker
16 Service-producing
17 Personal income, total
18 Wages and salary disbursements ..
19
Manufacturing
20 Disposable personal income5
136.5
113.5
108.2
137.6
110.3
104.4
139.1
110.2
104.2
138.8r
110.0'
104.4'
138.8r
109.8r
104.2'
138.6'
108.9'
103.3'
138.3r
108.0'
102.3'
137.7'
106.9'
101.2'
137.5'
105.9'
100.4'
137.5'
105.7'
100.0'
137.2'
104.9'
99.3'
136.8'
103.9'
98.5'
136.7
103.7
98.3
105.3
149.1
308.5
289.5
248.6
299.6
99.4
152.6
342.9
314.7
261.5
332.5
98.5
155.0
381.6
347.2
288.8 r
379.6
98.8 r
154.6r
387.8
351.4
294.3
372.9
98.5r
154.8'
390.9
353.7
294.9
375.5
97.3
154.9r
392.9'
355.4
293.7
379.6
95.9'
154.9'
395.6
357.8
292.2
382.0
94.3'
154.7'
395.6
356.5
288.8
381.8
93.2
154.8'
396.5'
358.6
289.3
384.0
92.9'
154.9'
398.9'
361.3'
292.5r
383.9'
92.1'
155.0'
400.4'
360.8'
289.9'
385.5'
91.1'
154.8'
401.8
360.1
288.6
387.6'
91.0
154.8
n.a.
n.a.
n.a.
390.5
21 Retail sales6
281.6
303.8
330.6
338.5
338.9
331.1
333.3
334.1
326.0
334.9
333.5'
328.3'
341.0
Prices7
22 Consumer
23 Producer finished goods
217.4
217.7
246.8
247.0
272.4
269.8
276.5
271.5
279.3
271.5
279.9
274.3
280.7
274.7
282.5
277.4
283.4
277.4
283.1
276.9
284.3
276.9
n.a.
n.a.
6. Based on Bureau of Census data published in Survey of Current Business.
7. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
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 Commerce.
3. Index of dollar value of total construction contracts, including residential,
nonresidential, and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
2.11
281.5
275.4
n.a.
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5, and
6, and indexes for series mentioned in notes 3 and 7 may also be found in the
Survey of Current Business.
Figures for industrial production for the last two months are preliminary and
estimated, respectively.
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION
Seasonally adjusted
1981
Q2
Q3
1982
Q4
Q1
Output (1967 = 100)
1981
Q2
Q3
1982
Q4
Q1
Capacity (percent of 1967 output)
1981
Q2
Q3
1982
Q4
Q1
Utilization rate (percent)
1 Manufacturing
2 Primary processing
3 Advanced processing
152.4
156.5
150.2
152.5
155.8
150.7
145.0
143.5
145.8
139.9
137.1
141.7
190.9
195.0
188.7
192.4
196.3
190.4
193.9
197.5
192.0
195.2
198.6
193.5
79.8
80.3
79.6
79.3
79.4
79.2
74.8
72.7
75.9
71.7
69.1
73.2
4 Materials
153.4
154.3
144.0
138.7
189.0
190.3
191.5
192.6
81.2
81.1
75.2
72.0
152.3
112.8
178.4
185.9
114.5
151.0
231.6
125.1
152.8
114.2
175.8
182.8
115.5
152.2
224.9
131.6
140.2
99.5
164.5
169.4
106.8
147.0
206.2
127.9
130.9
90.8
161.1
164.6
101.2
146.4
200.0
130.0
192.9
141.7
209.2
219.4
140.6
160.7
277.5
154.3
194.2
141.9
211.2
221.7
141.0
161.9
281.0
155.0
195.3
142.1
213.1
223.9
141.6
162.8
284.4
155.8
196.4
142.3
214.6
225.6
142.1
163.8
287.3
156.5
78.9
79.6
85.3
84.8
81.4
93.9
83.5
81.1
78.7
80.5
83.3
82.5
81.8
94.1
80.0
84.9
71.8
70.1
77.2
75.7
75.4
90.3
72.5
82.1
66.6
63.8
75.0
73.0
71.2
89.4
69.6
83.0
5 Durable goods
6 Metal materials
7 Nondurable goods
8 Textile, paper, and chemical
9
Textile
10
Paper
11
Chemical
12 Energy materials
Labor Market
2.11
A47
Continued
Previous cycle1
High
Low
Latest cycle2
High
Low
1982
1981
May
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr
May
Capacity utilization rate (percent)
13 Manufacturing
88.0
69.0
87.2
74.9
80.0
78.3
76.6
74.8
73.1
71.1
72.2
71.7
71.0
70.8
14
15
93.8
85.5
68.2
69.4
90.1
86.2
71.0
77.2
80.6
79.8
78.2
78.3
75.7
77.0
72.7
75.8
69.6
75.0
68.5
72.8
70.0
73.6
68.7
73.2
67.4
72.9
67.0
72.8
16 Materials
17 Durable goods
18
Metal materials
92.6
91.5
98.3
69.4
63.6
68.6
88.8
88.4
96.0
73.8
68.2
59.6
81.1
79.2
80.3
80.0
77.3
79.1
77.7
74.7
73.9
75.5
72.2
70.8
72.4
68.5
65.5
71.4
66.2
65.8
72.9
67.4
64.7
71.8
66.4
61.0
70.5
65.0
55.7
69.9
64.3
52.8
19
20
94.5
67.2
91.6
77.5
85.6
82.9
80.3
77.3
74.1
73.2
76.5
75.4
74.4
74.2
21
22
23
Nondurable goods
Textile, paper, and
chemical
Textile
Paper
Chemical
95.1
92.6
99.4
95.5
65.3
57.9
72.4
64.2
92.2
90.6
97.7
91.3
75.3
80.9
89.3
70.7
85.4
81.7
93.9
84.3
82.1
81.3
95.7
79.2
79.1
78.8
92.1
76.2
75.9
75.5
92.3
72.4
72.2
72.0
86.5
69.0
70.7
68.6
87.6
67.4
74.4
71.9
90.7
71.3
73.7
73.3
89.8
70.2
72.6
73.5
87.6
69.1
72.4
72.7
87.0
69.1
24
Energy materials
94.6
84.8
88.3
82.7
79.7
83.0
82.5
82.2
81.6
83.7
83.2
82.2
80.7
80.1
Primary processing
Advanced processing....
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, A N D UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1982
1981
Category
1979
1980
1981
Nov.'
Dec/
Jan.'
Feb/
Mar.'
Apr. r
May
HOUSEHOLD SURVEY DATA
1 Noninstitutional population1
166,951
169,847
172,272
173,154
173,330
173,494
173,657
173,842
174,019
174,201
2 Labor force (including Armed Forces)1 . . .
3 Civilian labor force
107,050
104,962
109,042
106,940
110,812
108,670
111,430
109,272
111,348
109,184
111,038
108,879
111,333
109,165
111,521
109,346
111,823
109,648
112,841
110,666
Nonagricultural industries2
Agriculture
Unemployment
6
Number
7
Rate (percent of civilian labor force) .
8 Not in labor force
95,477
3,347
95,938
3,364
97,030
3,368
96,800
3,372
96,404
3,209
96,170
3,411
96,217
3,373
96,144
3,349
96,032
3,309
96,629
3,488
6,137
5.8
59,901
7,637
7.1
60,805
8,273
7.6
61,460
9,100
8.3
61,724
9,571
8.8
61,982
9,298
8.5
62,456
9,575
8.8
62,324
9,854
9.0
62,321
10,307
9.4
62,196
10,549
9.5
61,360
89,823
90,564
91,548
90,996
90,642
90,460
90,459
90,304
89,993
89,969
21,040
958
4,463
5,136
20,192
4,975
17,112
15,947
20,300
1,020
4,399
5,143
20,386
5,168
17,901
16,249
20,264
1,104
4,307
5,152
20,736
5,330
18,598
16,056
19,903
1,202
4,071
5,150
20,623
5,324
18,815
15,908
19,676
1,206
4,026
5,128
20,524
5,331
18,834
15,917
19,517
1,201
3,966
5,125
20,630
5,326
18,831
15,864
19,454
1,203
3,974
5,115
20,670
5,326
18,867
15,850
19,319
1,197
3,934
5,100
20,655
5,336
18,904
15,859
19,154
1,182
3,890
5,089
20,583
5,328
18,924
15,843
19,120
1,158
3,899
5,064
20,629
5,327
18,920
15,852
4
5
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment3
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
1. Persons 16 years of age and over. Monthly figures, which are based on sample
data, relate to the calendar week that contains the 12th day; annual data are
averages of monthly figures. By definition, seasonality does not exist in population
figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family workers, and members of the Armed Forces. Data are adjusted to the March 1979
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A48
2.13
Domestic Nonfinancial Statistics • June 1982
INDUSTRIAL PRODUCTION
Indexes and Gross Value
Monthly data are seasonally adjusted.
Grouping
1967
proportion
1981
average
1981
Apr.
May
June
July
Aug.
1982
Sept
Oct.
Nov.
Jan.
Mar.
Apr.
May'
Index (1967 = 100)
MAJOR MARKET
1 Total index
2 Products
3 Final products
4
Consumer goods
5
Equipment
6 Intermediate products
7 Materials
Consumer goods
8 Durable consumer goods
9 Automotive products
10
Autos and utility vehicles .
11
Autos
12
Auto parts and allied
goods
13 Home goods
14
Appliances, A/C, and TV .
15
Appliances and TV
16
Carpeting and furniture . . .
17
Miscellaneous home goods
18 Nondurable consumer goods...
19 Clothing
20 Consumer staples
21
Consumer foods and
22
23
24
Nonfood staples
Consumer chemical
products
Consumer paper
products
Consumer energy
products
Residential utilities...
100.00
151.0
151.9
152.7
152.9
153.9
153.6
151.6
149.1
146.3
143.4
140.7
142.9
141.7
140.6
140.3
60.71
47.82
27.68
20.14
12.89
39.29
150.6
149.5
147.9
151.8
154.4
151.6
151.3
149.9
148.9
151.4
156.3
152.9
152.3
151.3
150.7
152.1
156.1
153.4
152.2
151.4
150.3
153.0
154.9
154.0
153.0
152.1
150.7
154.1
156.2
155.3
152.6
151.5
149.6
154.0
156.8
155.2
151.0
150.0
147.8
152.9
154.6
152.5
149.4
148.9
146.5
152.1
151.4
148.5
147.5
147.2
144.0
151.5
148.7
144.6
146.2
146.3
142.0
152.1
145.9
139.0
142.9
142.8
139.6
147.2
143.4
137.2
144.6
144.1
141.8
147.3
146.3
140.4
143.8
143.4
141.5
145.9
145.2
138.6
143.4
143.2
142.6
144.1
143.8
136.4
143.3
143.3
143.8
142.6
143.5
135.5
7.89
2.83
2.03
1.90
140.5
137.9
111.2
103.4
144.3
142.9
120.2
113.2
147.3
151.8
129.1
120.0
147.9
153.1
131.4
122.2
146.5
147.6
123.0
118.1
142.5
137.6
107.8
104.0
140.4
139.1
110.0
103.3
136.3
132.8
101.7
92.5
129.7
121.7
88.9
81.1
123.2
119.2
87.5
78.1
120.1
109.2
71.6
61.3
125.9
117.5
82.0
70.5
128.3
125.7
93.6
79.8
131.2
130.0
100.6
87.2
134.2
138.7
111.8
96.1
80
5.06
1.40
1.33
1.07
2.59
205.6
142.0
119.6
121.2
158.0
147.4
200.8
145.0
121.2
122.6
165.2
149.7
209.5
144.8
121.4
122.3
163.1
149.9
208.0
145.0
120.0
121.4
166.3
149.8
210.0
145.8
123.6
124.8
163.2
150.7
213.1
145.3
126.8
128.9
160.1
149.2
212.9
141.1
119.0
121.4
158.6
145.8
211.8
138.2
116.7
118.7
152.6
143.9
205.0
134.1
107.7
108.7
146.9
143.2
199.7
125.4
85.7
86.6
144.4
139.1
204.4 207.8
126.3 130.6
100.6 103.5
101.6 104.1
137.9 147.8
135.4 138.1
207.1
129.7
97.0
97.4
151.3
138.6
204.5
131.9
103.9
104.4
151.3
139.0
207.0
131.8
105.7
19.79
4.29
15.50
150.9
119.8
159.5
150.7
120.6
159.0
152.1
122.1
160.3
151.2
120.9
159.6
152.3
122.8
160.5
152.5
121.9
161.0
150.8
119.3
159.5
150.5
117.8
159.6
149.7
116 1
159.0
149.5
113 8
159.4
147.4 148.1
106 0
158.9 159.2
148.6
147.1
147.6
158.1
158.4
159.1
8.33
7.17
150.3
170.0
150.2
169.3
151.3
170.8
149.6
171.3
150.5
172.2
150.6
173.0
149 5
171.1
150 7
169.9
150 4
169.1
150 9
169.3
150 0
169.1
168.7
168.1
168.8
169.4
2.63
223.1
224.1
225.1
224.4
226.8
227.7
227.5
223.0
220.3
220.1
220.1 218.2
217.8
217.8
138.1
1.92
127.9
127.4
127.7
129.2
127.6
128.9
127.7
126.9
125.7
127.2
127.0
130.2
127.8
128.5
2.62
1.45
147.7
166.3
144.9
162.9
147.9
168.9
148.9
170.4
150.0
172.6
150.4
169.7
146.4
162.8
148.2
166.2
149.4
167.4
149.1
167.5
148.9
172.3
147.2
171.6
147.7
170.4
149.1
12.63
6.77
1.44
3.85
1.47
181.1
166.4
286.2
127.9
149.7
181.0
165.9
281.7
128.5
149.9
182.0
167.0
286.4
128.4
150.8
183.6
169.0
289.7
130.6
151.2
184.8
169.4
290.3
130.8
151.6
184.8
170.2
293.0
130.8
152.7
182.7
168.9
293.6
129.3
150.4
180.5
166.9
295.6
125.7
148.4
179.0
165.1
293.8
123.6
147.1
179.0
164.0
294.6
122.0
145.5
172.2 171.6
158.1 155.9
289.0 274.9
116.9 116.8
137.4 141.1
169.0
151.2
256.9
116.3
139.0
166.0
147.0
243.1
114.5
137.6
163.3
142.6
230.5
112.3
135.8
5.86
3.26
1.93
67
198.0
258.7
125.4
112.0
198.6
254.5
131.5
119.7
199.4
258.0
130.0
113.9
200.4
259.9
129.7
114.9
202.5
263.7
128.4
118.0
200.9
264.3
124.6
111.8
198.5
264.2
121.0
102.1
196.2
259.8
120.6
104.6
195.0
260.6
116.6
101.7
196.3
262.9
117.5
98.9
188.5 189.9
256.1 256.4
109.0 110.4
88.4 95.1
189.5
257.8
110.5
84.9
187.9
255.3
111.9
78.8
187.2
254.6
111.6
36 Defense and space
7.51
102.7
101.5
102.0
101.7
102.6
102.8
103.0
104.5
105.3
107.0
105.2
106.5
107.2
107.3
107.9
Intermediate products
37 Construction supplies
38 Business supplies
39 Commercial energy products
6.42
6.47
1.14
141.9
166.7
176.4
147.9
164.7
175.2
146.5
165.6
179.0
143.4
166.2
177.7
144.3
168.0
180.0
144.0
169.5
176.6
139.7
169.4
174.2
135.2
167.5
174.3
130.1
167.1
177.0
127.0
164.6
177.3
124.2
162.4
181.7
127.5
165.1
184.1
125.7
164.6
185.2
123.4
164.1
183.7
123.9
Materials
40 Durable goods materials
41 Durable consumer parts
42 Equipment parts
43 Durable materials n.e.c
44
Basic metal materials . . . .
20.35
4.58
5.44
10.34
5.57
149.1
114.5
191.2
142.3
112.0
151.8
119.7
192.8
144.3
113.8
152.8
121.1
194.0
145.1
114.3
152.4
123.1
193.2
143.9
112.8
153.6
123.2
193.8
145.9
114.5
154.3
121.8
194.7
147.4
117.4
150.4
114.5
192.7
144.1
113.1
145.6
107.6
190.3
138.9
106.5
141.0
102.8
188.7
132.9
101.6
134.0
92.9
183.3
126.1
94.8
129.7
86.9
177.2
123.6
94.5
132.4
92.2
180.1
125.1
94.3
130.5
93.9
177.8
121.8
88.4
128.0
95.6
174.0
118.1
81.6
126.8
98.0
171.5
116.1
10.47
174.6
179.3
179.0
176.9
176.5
175.4
175.5
170.6
164.7
158.3
156.8
164.2
162.2
160.5
160.3
7.62
1.85
1.62
4.15
1.70
1.14
181.4
113.0
150.6
224.0
169.3
137.4
186.8
115.1
152.2
232.4
172.0
139.7
187.3
114.9
150.9
233.9
167.8
140.5
183.7
113.4
149.8
228.4
171.4
139.6
183.5
115.5
150.0
227.1
171.7
136.6
182.4
116.0
151.5
224.1
169.4
137.8
182.5
114.9
155.1
223.4
170.9
136.2
176.4
111.6
149.6
215.9
166.7
137.1
169.9
106.9
150.2
205.8
163.5
131.9
161.9
102.0
141.2
196.8
161.9
128.6
159.1 167.9
97.3 102.2
143.2 148.5
193.0 204.9
162.4 166.7
132.4 136.0
166.7
104.1
147.4
202.2
162.3
132.4
164.6
104.6
143.9
199.5
159.6
134.4
164.5
8.48
4.65
3.82
129.0
115.0
145.9
123.1
104.2
146.1
123.0
104.4
145.5
129.3
113.7
148.2
133.3
120.3
149.2
132.6
120.9
146.9
128.9
117.4
142.9
128.3
116.4
142.8
128.1
115.6
143.4
127.4
115.9
141.4
130.9
119.2
145.1
130.3
119.5
143.4
128.8
120.3
139.0
126.7
117.6
137.7
125.7
9.35
12.23
3.76
8.48
131.8
137.4
156.4
129.0
133.8
132.6
154.1
123.1
134.4
133.5
157.3
123.0
133.9
138.0
157.6
129.3
135.2
141.2
159.1
133.3
134.5
140.5
158.4
132.6
131.1
136.8
154.8
128.9
128.8
136.9
156.1
128.3
125.9
137.2
157.8
128.1
120.1
136.7
157.7
127.4
117.0 120.1
139.5 138.9
158.8 158.4
130.9 130.3
118.8
138.1
159.1
128.8
120.2
136.8
159.6
126.7
119.9
136.3
25
26
Equipment
27 Business
28 Industrial
29
Building and mining
30
Manufacturing
31
Power
32
33
34
35
Commercial transit, f a r m . . . .
Commercial
Transit
Farm
45 Nondurable goods materials . . .
46 Textile, paper, and chemical
materials
47
Textile materials
Paper materials
48
49
Chemical materials
50 Containers, nondurable
51 Nondurable materials n.e.c. .
52 Energy materials
53 Primary energy
54 Converted fuel materials
Supplementary groups
55 Home goods and clothing
56 Energy, total
57 Products
58 Materials
125.7
Output
2.13
A49
Continued
Grouping
SIC
code
1967
proportion
1981
1981
avg. r
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec
Jan.
Feb.r
Mar.
Apr.P
May
Index (1967 = 100)
MAJOR INDUSTRY
1 Mining and utilities.
2
Mining
3
Utilities
4
Electric
5 Manufacturing
6
Nondurable
7
Durable
12.05
6.36
5.69
3.88
87.95
35.97
51.98
155.0
142.2
169.1
190.9
150.4
164.8
140.5
150.5
135.2
167.6
188.6
152.0
165.9
142.5
152.1
135.4
170.7
192.9
152.8
166.4
143.5
156.3
141.7
172.7
195.6
152.4
165.8
143.2
159.1
146.5
173.1
196.2
153.2
167.1
143.6
158.2
146.0
171.9
194.2
153.2
167.3
143.4
155.8
145.0
167.8
188.3
151.1
165.9
140.9
156.1
145.3
168.1
189.4
148.0
162.8
137.8
155.4
143.3
168.9
190.9
145.0
160.3
134.4
154.7
142.6
168.2
190.2
142.0
157.4
131.3
157.4
144.5
171.8
195.2
138.5
155.1
127.1
155.6
142.4
170.4
192.5
140.9
157.8
129.3
153.3
138.5
169.9
191.6
140.2
157.3
128.3
150.6
133.3
170.0
191.6
139.2
156.6
127.3
148.5
130.1
169.1
190.3
139.1
156.7
127.0
148.0
133.5
8
9
10
11
Mining
Metal
Coal
Oil and gas extraction . . .
Stone and earth minerals.
10
11.12
13
14
.51
.69
4.40
.75
123.1
141.3
146.8
129.4
123.1
75.9
146.1
133.7
125.0
77.0
146.2
132.2
123.5
122.9
148.2
132.7
123.6
170.0
147.7
133.3
124.1
167.4
148.2
128.2
121.5
161.9
148.8
123.4
119.8
166.9
148.9
122.0
115.4
160.8
148.4
116.7
110.9
145.5
150.5
115.7
121.3
147.9
151.5
115.8
120.8
156.0
146.6
120.5
109.3
155.6
142.2
120.9
99.4
146.2
137.7
119.0
12
13
14
15
16
Nondurable manufactures
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
20
21
22
23
26
8.75
.67
2.68
3.31
3.21
152.1
122.2
135.7
120.4
155.0
151.9
122.2
138.9
121.6
157.0
152.2
122.3
138.8
122.6
155.9
151.3
120.9
138.3
121.1
153.4
151.6
121.3
139.4
122.6
154.9
151.9
123.8
140.7
122.6
156.7
150.7
122.4
136.3
122.5
158.6
151.4
124.3
132.5
117.8
153.3
153.0
119.6
126.1
113.8
152.6
152.8
112.6
122.8
114.1
146.6
151.1
112.7
120.0
105.7
148.3
151.7
126.7
125.8
150.5
127.7
126.0
126.9
151.5
150.8
149.5
148.0
17
18
19
20
21
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products .
Leather and products
27
28
29
30
31
4.72
7.74
1.79
2.24
.86
144.2
215.6
129.7
274.0
69.3
141.6
219.8
130.0
275.2
68.9
141.3
220.6
129.8
280.3
69.8
143.1
218.4
129.3
285.1
68.4
144.4
221.5
128.7
285.3
70.1
146.1
219.2
130.4
286.7
69.6
145.9
216.3
129.1
282.2
69.7
145.6
208.8
128.3
276.0
71.2
143.4
204.6
128.0
264.1
70.8
145.3
199.8
128.3
247.3
65.6
145.6
196.7
123.3
244.7
63.1
146.4
201.3
119.5
251.8
64.0
145.9
200.3
122.4
252.9
61.2
144.7
198.1
123.0
255.1
61.3
143.5
Durable manufactures
22 Ordnance, private and
government
23 Lumber and products
24 Furniture and fixtures
25 Clay, glass, stone products
19.91
24
25
32
3.64
1.64
1.37
2.74
81.1
119.1
157.2
147.9
79.8
126.3
158.7
154.3
80.9
126.2
158.9
151.7
80.9
122.5
162.4
148.1
80.6
122.9
164.9
148.7
81.8
119.1
163.3
148.2
82.3
113.2
159.9
147.3
82.5
109.6
157.2
143.4
84.3
104.7
153.7
135.9
85.5
104.8
149.4
131.5
84.1 83.8
99.2 104.9
144.3 148.4
128.5 135.0
84.2
103.5
150.3
131.4
85.0
102.9
151.0
128.0
86.0
26
27
28
29
30
33
331.2
34
35
36
6.57
4.21
5.93
9.15
8.05
107.9
99.8
136.4
171.2
178.4
110.6
103.4
139.5
169.7
178.8
111.9
105.6
138.4
172.1
179.9
107.4
98.5
139.3
174.1
180.1
109.4
99.7
140.1
176.7
180.9
113.1
105.1
140.0
176.4
182.6
108.6
99.2
136.8
173.9
180.0
102.3
92.2
133.8
169.7
179.6
96.6
87.2
130.2
167.9
175.7
89.6
79.2
126.1
167.4
170.7
89.7 88.5
79.6 78.5
120.7 121.4
160.9 160.0
168.2 172.9
83.2
73.4
121.1
157.3
172.5
76.6
65.4
120.1
154.3
173.6
119.1
152.1
173.4
37
371
9.27
4.50
116.1
122.3
121.3
130.7
123.7
136.4
123.4
137.5
119.8
130.5
115.4
123.1
114.2
120.4
110.6
113.8
106.1
105.5
103.7
100.4
96.6 102.0
90.4 98.6
104.6
106.2
106.4
111.5
110.2
119.6
372-9
38
39
4.77
2.11
1.51
110.2
170.3
154.7
112.4
170.0
157.3
111.8
170.6
157.0
110.2
171.3
158.8
109.7
172.1
159.4
108.2
172.3
158.6
108.5
169.7
154.2
107.5
168.6
151.5
106.8
167.1
151.7
106.8
166.8
147.9
102.4 105.3
162.2 164.5
144.9 144.5
103.2
163.0
146.8
101.7
162.9
147.5
101.2
161.9
146.3
Primary metals
Iron and steel
Fabricated metal products.
Nonelectrical machinery...
Electrical machinery
31 Transportation equipment
32
Motor vehicles and parts
33
Aerospace and miscellaneous
transportation equipment
34 Instruments
35 Miscellaneous manufactures . . . .
125.3
73.0
Gross value (billions of 1972 dollars, annual rates)
MAJOR MARKET
36 Products, total
507.4'
612.3
616.2
622.2
619.2
621.4
616.5
611.5
605.0
597.6
592.8
577.4 588.1
587.2
584.9
588.9
37 Final
38
Consumer goods
39
Equipment
40 Intermediate
390.9 1
277.5 1
113.41
474.1
318.0
156.1
138.2
476.3
320.0
156.3
139.9
482.4
324.3
158.1
139.8
480.5
322.1
158.5
138.7
481.9
324.0
157.9
139.5
476.4
319.3
157.1
140.1
473.0
317.7
155.3
138.4
470.1
314.3
155.8
134.9
465.2
310.5
154.7
132.4
462.3
307.2
155.1
130.5
448.8
298.9
149.9
128.7
457.1
306.3
150.8
131.1
456.8
307.0
149.8
130.4
455.7
308.0
147.7
129.1
460.1
313.1
147.0
128.8
116.6 1
1. 1972 dollar value.
NOTE. Published groupings include some series and subtotals not shown separately. For description and historical data, see Industrial Production—1976 Revision
(Board of Governors of the Federal Reserve System: Washington, D.C.), December 1977.
A50
2.14
Domestic Nonfinancial Statistics • June 1982
HOUSING AND
CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1982
1981
T
1981
Sept.
Oct.
Nov.
Dec.
Jan.'
Feb.'
Mar.'
Apr.
Private residential real estate activity (thousands of units)
NEW UNITS
835'
456'
379'
738'
400'
338'
743'
413'
330'
797'
454
343'
803
450
353
792
436
356
851
460
391
871
444
427
1,084
705
379
899
623
276
854
507
347
860
554
306
882
550
332
885
592
293
945
568
377
941
627
314
881
564
317
896
515
382
682
382
301
770
428
342
731
410
321
705
397
309
689
391
298
684
394
291
690
402
289
687
402
285
1,855
1,286
569
1,502
957
545
1,266
818
447
1,202
782
420
1,265
725
540
1,067
673
394
1,114
676
438
1,063
640
423
921
545
376
917
575
342
13 Mobile homes shipped
277
222
241
232
208
207
206
211
251
252
Merchant builder activity in 1-family
units
14 Number sold
15 Number for sale, end of period 1
709
402
545
342
436
278
335
304
359
291
388
282
456
272
399
275
369
277
372
271
315
266
Price (thousands of dollars)2
Median
16 Units sold
62.8
64.7
68.8
65.8
69.6
71.2
68.4
66.2
65.8
68.1
72.4
17
71.9
76.4
83.1
81.3
82.5
85.3
82.8
78.0
80.9
84.7
85.7
3,701
2,881
2,350
2,070
1,930
1,900
1,940
1,860
1,950
1,990
1,900
55.5
64.0
62.1
72.7
66.1
78.0
67.1
79.1
66.0
76.6
65.9
77.5
66.6
78.6
66.4
79.8
66.9
78.8
67.0
79.1
67.5
8 D.3
1 Permits authorized
2
1-family
3 2-or-more-family
1,552
981
571
1,191
710
481
4 Started
5
1-family
6 2-or-more-family
1.745
1.194
551
1,292
852
440
7 Under construction, end of period 1
8
1-family
9 2-or-more-family
1.140
639
501
10 Completed
11 1-family
12 2-or-more-family
Units sold
986'
564'
421'
n a.
EXISTING UNITS ( 1 - f a m i l y )
18 Number sold
Price of units sold (thous. of dollars)2
19 Median
20 Average
Value of new construction3 (millions of dollars)
CONSTRUCTION
21 Total put in place
230,781
230,273
237,035
230,892
230,368
233,026
235,844
232,672
232,948
234,201
232,848
??
73
74
181,690
99,032
82,658
174,896
87,260
87,636
183,502
85,805
97,697
178,649
78,503
100,146
179.248
78.292
100,956
180,602
78,219
102,383
182,761
79,779
102,982
181,057
78,230
102,827
181,397
76,221
105,176
180,888
76,847
104,041
182,475
76,882
105,593
14,953
24,919
7,427
35,359
13,839
29,940
8,654
35,203
16,884
33,485
9,377
37,951
18,344
33,412
9,402
38,988
18,558
33,046
9,553
39,799
18,373
34,506
9,193
40,311
17,736
35,921
9,019
40,306
17,213
36,789
9.867
38.958
17,598
37,907
10,113
39,558
16,436
38,990
10,055
38,560
16,985
39,493
9,691
39,424
49,088
1,648
11,998
4,586
30,856
55,371
1,880
13,784
5,089
34,618
53,534
1,944
13,162
5,267
33,161
52,243
2,065
12,537
4,910
32,731
51,120
1,943
11.515
6,978
30.684
52,423
1,946
12,478
4,868
33,131
53,083
1,909
11,642
4,908
34,624
51,616
2,108
12,600
5,378
31,530
51,551
1,850
13,275
5,395
31,031
53,313
2,223
14,502
5,121
31,467
50,373
2,041
12,103
5,260
30,969
75
76
71
28
Residential
Nonresidential, total
Buildings
Industrial
Commercial
Other
Public utilities and other
79 Public
30
31 Highway
Conservation and development
V
33 Other
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly comparable
with data in 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 and
current figures are available from originating agency. Permit authorizations are
those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978.
Prices
2.15
A51
C O N S U M E R A N D P R O D U C E R PRICES
Percentage changes based on seasonally adjusted data, except as noted
12 months to
Item
1981
1981
1982
Apr.
Apr.
1 month to
3 months (at annual rate) to
June
Sept.
Dec.
1982
1981
Mar.
Dec.
Index
level
Apr.
1982
Feb.
Jan.
Mar.
1982
(1967
= 10 0 ) '
Apr.
CONSUMER PRICES2
1
All items
10.0
6.6
8.1
12.8
5.4
1.0
.4
.3
.2
-.3
.2
284.3
2
3
4
5
6
7
8
9
Commodities
Food
Commodities less food
Durable
Nondurable
Services
Rent
Services less rent
9.1
9.6
8.9
7.9
10.0
11.3
9.2
11.7
3.2
4.0
2.9
6.6
-1.2
11.2
7.8
11.6
3.2
2.2
3.8
9.7
-1.4
14.8
7.7
15.8
8.5
7.7
9.0
10.8
4.6
19.2
10.2
20.4
3.6
1.7
4.3
1.2
3.8
7.8
9.0
7.6
-.8
3.9
-2.6
3.5
-4.9
3.5
5.9
3.3
.3
.1
.4
.3
-.3
.5
7
.4
.1
.7
-.1
.2
.2
.5
.6
.5
.2
.6
.0
.4
-.8
.4
.4
.4
-.5
-.4
-.5
.2
-.7
.0
.5
.0
-.3
.3
-.5
.6
-2.2
.9
.2
1.0
258.9
283.9
245.0
235.8
255.0
328.4
220.1
349.1
Other groupings
All items less food
All items less food and energy
Homeownership
10.1
9.5
10.3
7.1
8.8
9.2
9.3
11.6
16.9
13.9
15.0
21.5
6.2
5.6
.3
.9
3.0
-2.4
.4
.5
.2
.2
.3
-.1
.2
.4
.4
-.2
.0
-.9
.2
0.8
1.3
282.9
272.2
370.6
10.9
9.5
11.5
10.4
10.9
3.1
2.3
3.1
2.0
6.3
1.9
7.1
6.4
3.5
7.6
10.0
8.0
3.4
2.8
1.6
3.2
5.7
5.2
5.2
4.0
-3.7
7.2
9.7
2.8
.3
-.1
6.0
-2.2
2.1
-1.4
.3
.2
-.1
.3
.6
„2
.4
.4
1.1
.1
.4
.3
-.1
-.1
.5
-.3
-.4
-.3
-.1
-.3
-.2
-.4
.5
-.3
.1
.0
1.6
-.7
.4
-.8
276.9
276.9
259.8
281.7
277.1
315.3
25.1
11.7
-4.4
-3.5
16.1
6.4
1.1
-18.2
-5.6
-25.5
-18.1
23.3
.1
-2.8
-1.0
4.4
-1.9
.7
-2.0
.2
-.2
3.5
470.4
254.3
10
11
12
PRODUCER PRICES
13
14
15
16
17
18
19
20
Finished goods
Consumer
Foods
Excluding foods
Capital equipment
Intermediate materials3
Crude materials
Nonfood
Food
11.0
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.
A52
2.16
Domestic Nonfinancial Statistics • June 1982
GROSS NATIONAL PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1981
Account
1979
1980
1982
1981
Q1
Q2
Q3
Q4
Ql'
GROSS NATIONAL PRODUCT
1 Total
2,413.9
2,626.1
2,925.5
2,853.0
2,885.8
2,965.0
2,998.3
2,991.6
By source
2 Personal consumption expenditures
3 Durable goods
4 Nondurable goods
Services
1,510.9
212.3
602.2
696.3
1,672.8
211.9
675.7
785.2
1,857.8
232.0
743.2
882.6
1,810.1
238.3
726.0
845.8
1,829.1
227.3
735.3
866.5
1,883.9
236.2
751.3
896.4
1,908.3
226.4
760.3
921.5
1,945.1
236.5
761.6
946.9
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
450.5
434.4
328.9
125.7
203.1
105.5
100.0
437.1
432.7
315.9
117.2
198.7
116.7
111.4
458.6
435.3
324.6
123.1
201.5
110.7
105.4
463.0
435.6
335.1
128.3
206.8
100.5
94.9
443.3
434.0
339.8
134.3
205.5
94.2
88.4
391.4
430.7
337.3
135.1
202.2
93.5
87.9
17.5
13.4
-5.9
-4.7
16.2
13.8
4.5
6.8
23.3
21.5
27.5
23.1
9.4
3.7
-39.3
-38.1
15 Net exports of goods and services
16 Exports
17 Imports
13.4
281.3
267.9
23.3
339.8
316.5
26.0
367.3
341.3
29.2
367.4
338.2
20.8
368.2
347.5
29.3
368.0
338.7
24.7
365.6
341.0
28.6
356.5
327.9
18 Government purchases of goods and services
19 Federal
20 State and local
473.8
167.9
305.9
534.7
198.9
335.8
591.2
230.2
361.0
576.5
221.6
354.9
577.4
219.5
357.9
588.9
226.4
362.5
622.0
253.3
368.7
626.5
254.0
372.5
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
2,909.4
1,272.3
506.9
765.4
1,371.7
281.6
2,848.5
1,247.5
501.4
746.1
1,317.1
288.4
2,862.5
1,257.0
516.9
740.1
1,344.7
284.1
2,937.6
1,298.3
525.2
773.0
1,390.5
276.3
2,989.0
1,286.4
484.2
802.2
1,434.4
277.5
3,030.9
1,258.7
461.3
797.4
1,457.0
275.9
17.5
11.5
6.0
-5.9
-4.0
-1.8
16.2
7.4
8.8
4.5
-4.2
8.6
23.3
18.5
4.8
27.5
18.6
8.9
9.4
-3.3
12.7
-39.3
-33.7
-5.6
1,483.0
1,480.7
1,510.3
1,516.4
1,510.4
1,515.8
1,498.4
1,482.2
31 Total
1,963.3
2,121.4
2,347.2
2,291.1
2,320.9
2,377.6
2,399.1
2,394.6
32 Compensation of employees
33 Wa^es and salaries
34
Government and government enterprises
35
Other
36 Supplement to wages and salaries
37
Employer contributions for social insurance
Other labor income
38
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
1,771.6
1,482.8
273.9
1,208.8
288.8
134.7
154.1
1,722.4
1,442.9
267.1
1,175.7
279.5
131.5
148.0
1,752.0
1,467.0
270.5
1,196.4
285.1
133.2
151.8
1,790.7
1,498.7
274.7
1,224.0
292.0
135.6
156.3
1,821.3
1,522.5
283.2
1,239.2
298.8
138.4
160.4
1,844.2
1,538.1
287.1
1,251.0
306.1
142.3
163.8
131.6
100.7
30.8
130.6
107.2
23.4
134.8
112.4
22.4
132.1
113.2
18.9
134.1
112.5
21.7
137.1
112.4
24.7
135.9
111.5
24.4
127.7
110.7
17.0
6 Gross private domestic investment
7 Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures
12
Nonfarm
13
14
Change in business inventories
Nonfarm
By major type of product
21 Final sales, total
22 Goods
2i
Durable
24
Nondurable
25 Services
26 Structures
27 Change in business inventories
28 Durable goods
29 Nondurable goods
30 MEMO: Total GNP in 1972 dollars
NATIONAL INCOME
39 Proprietors' income1
40 Business and professional1
41 Farm1
42 Rental income of persons2
43 Corporate profits1
44 Profits before tax3
45 Inventory valuation adjustment
46 Capital consumption adjustment
47 Net interest
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
30.5
31.8
33.6
32.7
33.3
33.9
34.5
34.8
196.8
255.4
-42.6
-15.9
182.7
245.5
-45.7
-17.2
191.7
233.3
-27.7
-13.9
203.0
257.0
-39.2
-14.7
190.3
229.0
-24.0
-14.7
195.7
234.4
-25.3
-13.4
177.6
212.8
-22.3
-12.8
149.9
169.8
-10.1
-9.7
143.4
179.8
215.4
200.8
211.0
220.2
229.7
238.0
3. For after-tax profits, dividends, and the like, see table 1.49.
SOURCE. Survey of Current Business (Department of Commerce).
National Income Accounts
2.17
A53
PERSONAL INCOME A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1982
1981
Account
1980
1979
1981
Q1
Q2
Q3
Q4
Qlr
PERSONAL INCOME AND SAVING
1 Total personal income
1,943.8
2,160.2
2,404.1
2,319.8
2,368.5
2,441.7
2,486.5
2,511.3
2 Wage and salary disbursements
3 Commodity-producing industries
4
Manufacturing
5 Distributive industries
6 Service industries
7 Government and government enterprises
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
1,482.7
512.7
387.3
361.1
335.0
273.9
1,442.9
501.3
377.4
351.9
322.5
267.1
1,467.0
508.1
386.7
357.8
330.5
270.5
1,498.5
520.2
393.9
365.3
338.5
274.5
1,522.5
521.0
391.0
369.5
348.7
283.3
1,538.3
520.5
389.7
373.6
356.9
287.3
118.6
131.6
100.8
30.8
30.5
48.6
209.6
249.4
131.8
137.1
130.6
107.2
23.4
31.8
54.4
256.3
294.2
153.8
154.1
134.8
112.4
22.4
33.6
61.3
308.5
333.2
180.4
148.0
132.1
113.2
18.9
32.7
58.0
288.7
319.6
169.8
151.8
134.1
112.5
21.7
33.3
60.2
300.9
324.2
172.0
156.3
137.1
112.4
24.7
33.9
63.0
315.7
342.2
188.5
160.4
135.9
111.5
24.4
34.5
64.1
328.7
347.0
191.2
163.8
127.7
110.7
17.0
34.8
64.7
339.0
354.2
194.4
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income1
Business and professional1
Farm 1
Rental income of persons2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
80.6
87.9
104.2
102.3
103.1
105.0
106.5
111.2
1,943.8
2,160.2
2,404.1
2,319.8
2,368.5
2,441.7
2,486.5
2,511.3
302.0
338.5
388.2
372.0
382.9
399.8
398.0
398.3
20 EQUALS: Disposable personal income
1,641.7
1,821.7
2,016.0
1,947.8
1,985.6
2,042.0
2,088.5
2,113.0
21
1,555.5
1,720.4
1,908.4
1,858.9
1,879.0
1,935.1
1,960.5
1,997.6
86.2
101.3
107.6
88.9
106.6
106.9
128.0
115.4
6,588
4,135
4,493
5.2
6,503
4,108
4,473
5.6
6,570
4,171
4,526
5.3
6,619
4,191
4,511
4.6
6,581
4,162
4,517
5.4
6,585
4,184
4,535
5.2
6,494
4,150
4,541
6.1
6,411
4,171
4,531
5.5
27 Gross saving
412.0
401.9
455.5
442.6
465.3
469.4
444.7
400.6
28 Gross private saving
398.9
86.2
59.1
-42.6
432.9
101.3
44.3
-45.7
480.1
107.6
50.8
-27.7
451.1
88.9
55.7
-39.2
475.3
106.6
52.0
-24.0
486.2
106.9
52.8
-25.3
507.7
128.0
42.9
-22.3
490.6
115.4
32.1
-10.1
155.4
98.2
.0
175.4
111.8
.0
197.7
123.9
.0
187.5
119.0
.0
194.6
122.0
.0
201.1
125.4
.0
207.7
129.1
.0
211.7
131.3
.0
11.9
-14.8
26.7
-32.1
-61.2
29.1
-25.7
-62.4
36.7
-9.7
-46.6
36.9
-11.2
-47.2
36.1
-17.9
-55.7
37.8
-64.1
-100.0
35.9
-90.0
-126.4
36.4
19
LESS: Personal tax and nontax payments
LESS: Personal outlays
22 EQUALS: Personal saving
MEMO:
Per capita (1972 dollars)
23 Gross national product
24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
GROSS SAVING
30 Undistributed corporate profits1
31 Corporate inventory valuation adjustment
Capital consumption allowances
32 Corporate
33 Noncorporate
34 Wage accruals less disbursements
35 Government surplus, or deficit ( - ) , national income and product
accounts
Federal
State and local
36
37
1.1
1.1
1.1
1.1
1.1
1.1
1.1
.0
39 Gross investment
414.1
401.2
454.7
446.0
458.3
469.6
444.8
396.4
40 Gross private domestic
41 Net foreign
415.8
-1.7
395.3
5.9
450.5
4.2
437.1
8.8
458.6
-.2
463.0
6.5
443.3
1.5
391.4
5.0
-.8
3.4
-6.9
.2
.2
-4.2
38 Capital grants received by the United States, net
42 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
2.2
-.7
SOURCE. Survey of Current Business (Department of Commerce).
A54
3.10
International Statistics • June 1982
U.S. INTERNATIONAL TRANSACTIONS Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
1980
Item credits or debits
1979
1980
Q4
1 Balance on current account
2 Not seasonally adjusted
1981
1981
Q2
Q1
Q3
Q4
1,414
3,723
6,578
1,390
3,244
3,334
3,546
1,212
2,438
2,115
-863
-85
1,457
-27,346
184,473
-211,819
-1,947
33,462
2,839
-25,342
223,966
-249,308
-2,515
32,762
5,874
-27,817
236,300
-264,117
-1,943
36,757
6,344
-5,570
57,149
-62,719
-715
8,257
1,762
-4,661
60,990
-65,651
-568
9,083
1,007
-6,894
60,369
-67,263
-698
8,764
1,558
-7,026
57,929
-64,955
-87
9,257
1,819
-9,236
57,012
-66,248
-590
9,650
1,962
-2,057
-3,536
-2,397
-4,659
-2,302
-4,460
-720
-1,624
-550
-977
-553
-965
-599
-1,249
-602
-1,269
11 Change in U.S. government assets, other than official reserve assets, net (increase, - )
-3,767
-5,165
-5,138
-1,094
-1,395
-1,485
-1,282
-976
12 Change in U.S. official reserve assets (increase, - )
13 Gold
14 Special drawing rights (SDRs)
15 Reserve position in International Monetary Fund
16 Foreign currencies
-1,132
-65
- 1,136
-189
257
-8,155
0
-16
-1,667
-6,472
-5,175
0
-1,823
-2,491
-861
-4,279
0
1,285
-1,240
-4,324
-4,529
0
-1,441
-707
-2,381
-905
0
-23
-780
-102
-4
0
-225
-647
868
262
0
-134
-358
754
17 Change in U.S. private assets abroad (increase, - ) 3
18 Bank-reported claims
19 Nonbank-reported claims
20 U.S. purchase of foreign securities, net
21 U.S. direct investments abroad, net 3
-57,739
-26,213
-3,026
-4,552
-23,948
-71,456
-46,947
-2,653
-3,310
-18,546
-96,265
-84,462
n.a.
-5,536
-6,995
-22,622
-13,139
-2,005
-356
-7,122
-16,483
-11,241
-3,192
-488
-1,562
-19,590
-15,627
2,470
1,479
-4,954
-15,423
-15,209
1,451
-642
-1,023
-44,771
-42,385
n.a.
-2,928
542
22 Change in foreign official assets in the United States
(increase, + )
23 U.S. Treasury securities
24 Other U.S. government obligations
25 Other U.S. government liabilities4
26 Other U.S. liabilities reported by U.S. banks
27 Other foreign official assets5
-13,757
-22,435
463
-133
7,213
1,135
15,492
9,683
2,187
636
-159
3,145
5,208
5,008
1,279
170
3,916
2,667
7,712
6,911
587
205
-460
469
5,503
7,242
454
-112
-2,910
829
-2,779
-2,069
536
177
-2,070
647
-5,663
-4,634
545
-161
-2,387
974
8,147
4,469
-256
266
3,451
217
52,703
32,607
2,065
4,820
1,334
11,877
34,769
10,743
5,109
2,679
5,384
10,853
69,148
41,332
n.a.
2,914
7,078
18.664
16,157
7,737
3,228
893
2,240
2,059
1,637
-3,889
-820
1,405
2,454
2,487
15,667
7,916
-293
733
3,472
3,839
21,512
16,795
273
-449
759
4,134
30,333
20,510
n.a.
1,225
393
8,205
1,139
21,140
1,152
29,640
1,093
24,551
0
2,736
2,139
1,093
10,840
-401
0
7,880
1,161
0
-1,255
-2,631
0
7,090
1,875
21,140
29,640
24,551
597
11,241
6,719
1,376
5,215
3
4
5
6
7
8
9
10
2
Merchandise trade balance
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net 3
Other service transactions, net
Remittances, pensions, and other transfers
U.S. government grants (excluding military)
28 Change in foreign private assets in the United States
(increase, + ) 3
29 U.S. bank-reported liabilities
30 U.S. nonbank-reported liabilities
31 Foreign private purchases of U.S. Treasury securities, net
32 Foreign purchases of other U.S. securities, net
33 Foreign direct investments in the United States, net 3 . . . .
34 Allocation of SDRs
35 Discrepancy
36 Owing to seasonal adjustments
37 Statistical discrepancy in recorded data before seasonal
adjustment
MEMO:
Changes in official assets
U.S. official reserve assets (increase,
Foreign official assets in the United States
(increase, + )
40 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 22
above)
41 Transfers under military grant programs (excluded from
lines 4, 6, and 10 above)
38
39
-1,132
-8,155
-5,175
-4,279
-4,529
-905
-4
262
-13,624
14,856
5,038
7,507
5,615
-2,956
-5,502
7,881
5,543
12,744
13,419
1,024
5,446
2,676
3,065
2,232
305
635
581
211
192
214
132
44
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 from Bureau of Economic Analysis, Survey of Current Business
(U.S. Department of Commerce).
Trade and Reserve and Official Assets
3.11
A55
U.S. FOREIGN T R A D E
Millions of dollars; monthly data are seasonally adjusted.
1982
1981
Item
1979
1980
1981
Oct.
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments
181,860
220,626
233,677
Nov.
19,163
Jan.
Dec.
19,153
18,885
Feb.
Mar.
18,737
18,704
Apr.
18,602
17,843
2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded
warehouses
209,458
244,871
261,305
23,077
22,508
19,746
22,829
19,090
20,349
17,387
3 Trade balance
-27,598
-24,245
-27,628
-3,914
-3,355
-861
-4,092
-387
-1,747
456
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
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.
NOTE. The data through 1981 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.
Beginning in 1981, foreign trade of the U.S. Virgin Islands is included in the Census
basis trade data; this adjustment has been made for all data shown in the table.
Beginning with 1982 data, the value of imports are on a customs valuation basis.
The Census basis data differ from merchandise trade data shown in table 3.10,
U.S. International Transactions Summary, for reasons of coverage and timing. On
the export side, the largest adjustments are: (a) the addition of exports to Canada
3.12
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
1982
1981
Type
1978
1 Total1
18,650
2 Gold stock, including Exchange Stabilization Fund1
3 Special drawing rights2 3
1979
18,956
1980
26,756
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
30,248
31,002
30,075
30,098
30,060
29,944
31,552
30,915
11,150
11,149
11,149
11,671
11,172
11,160
11,152
11,152
11,151
11,151
11,150
1,558
2,724
2,610
3,949
4,109
4,095
4,176
4,359
4 Reserve position in International Monetary Fund 2
1,047
1,253
2,852
4,736
5,009
5,055
5,237
5,275
5 Foreign currencies4 5
4,374
3,807
10,134
10,411
10,732
9,774
9,534
9,276
4,294
4,521
5,367
6,022
6,099
9,121
10,087
9,146
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.
1. Gold held under earmark at Federal Reserve Banks for foreign and international accounts is not included in the gold stock of the United States; see table
3.22.
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.
3.13
4,306
FOREIGN OFFICIAL ASSETS HELD A T FEDERAL RESERVE BANKS
Millions of dollars, end of period
1981
Assets
1978
1979
Nov.
1 Deposits
Assets held in custody
2 U.S. Treasury securities'
3 Earmarked gold2
Dec.
Jan.
Feb.
Mar.
Apr.
May
367
429
411
534
505
333
416
421
966
308
117,126
15,463
95,075
15,169
102,417
14,965
103,894
14,802
104,680
14,804
104,631
14,802
103,557
14,791
103,964
14,798
102,346
14,788
102,112
14,778
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.
1982
1980
NOTE. Excludes deposits and U.S. Treasury securities held for international and
regional organizations. Earmarked gold is gold held for foreign and international
accounts and is not included in the gold stock of the United States,
A56
3.14
International Statistics • June 1982
FOREIGN BRANCHES OF U.S. BANKS
Balance Sheet Data
Millions of dollars, end of period
1982
1981
Asset account
19781
1979
1980
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar .P
All foreign countries
1 Total, all currencies
2 Claims on United States
3 Parent bank
4 Other
5 Claims on foreigners
6 Other branches of parent bank
7 Banks
8 Public borrowers2
9 Nonbank foreigners
10 Other assets
11 Total payable in U.S. dollars
12 Claims on United States
13 Parent bank
14 Other
15 Claims on foreigners
16 Other branches of parent bank
17 Banks
18 Public borrowers2
19 Nonbank foreigners
20 Other assets
306,795
364,409
401,135
450,234
444,654
462,810
462,635
461,218
463,176
17,340
12,811
4,529
32,302
25,929
6,373
28,460
20,202
8,258
46,369
32,249
14,120
41,554
26,833
14,721
44,562
26,540
18,022
63,435
42,940
20,495
459,913
66,864'
46,712
20,152'
65,918
45,128
20,790
72,927
48,648
24,279
278,135
70,338
103,111
23,737
80,949
317,330
79,662
123,420
26,097
88,151
354,960
77,019
146,448
28,033
103,460
384,407
84,627
159,637
29,927
110,216
383,463
83,597
156,833
30,211
112,822
397,825
89,269
161,510
30,181
116,865
379,193
87,840
150,919
28,193
112,241
373,108'
91,934
145,538r
26,632
109,004
375,518
92,414
146,369
26,911
109,824
371,045
89,371
146,976
26,314
108,384
11,320
14,777
17,715
19,458
19,637
20,423
20,007
19,941
19,782
19,204
224,940
267,713
291,798
343,067
336,839
348,945
350,564
351,180
353,081
355,019
16,382
12,625
3,757
31,171
25,632
5,539
27,191
19,896
7,295
45,116
31,991
13,125
40,370
26,639
13,731
43,271
26,347
16,924
61,838
42,397
19,441
65,327
46,155
19,182'
64,363
44,535
19,828
71,352
48,003
23,349
203,498
55,408
78,686
19,567
49,837
229,120
61,525
96,261
21,629
49,705
255,391
58,541
117,342
23,491
56,017
286,367
66,279
131,524
24.709
63.855
284,590
65,859
127,944
25,199
65,588
293,690
69,938
131,576
25,121
67,055
277,059
69,382
122,287
22,859
62,531
273,653'
74,895
117,147'
21,244
60,367
276,749
75,868
118,239
21,543
61,099
271,915
72,884
117,286
20,631
61,114
5,060
7,422
9,216
11,584
11,879
11,984
11,667
12,190
11,969
11,752
United Kingdom
21 Total, all currencies
22 Claims on United States
23 Parent bank
24 Other
25 Claims on foreigners
26 Other branches of parent bank
27 Banks
28 Public borrowers2
29 Nonbank foreigners
30 Other assets
31 Total payable in U.S. dollars
32 Claims on United States
33 Parent bank
34 Other
35 Claims on foreigners
36 Other branches of parent bank
37 Banks
38 Public borrowers2
39 Nonbank foreigners
40 Other assets
106,593
130,873
144,717
154,0%
153,615
161,531
157,229
157,892
162,351
161,101
5,370
4,448
922
11,117
9,338
1,779
7,509
5,275
2,234
11,167
7,842
3,325
9,668
6,351
3,317
9,315
5,162
4,153
11,823
7,885
3,938
12,045
8,374
3,671
13,458
9,618
3,840
13,554
9,549
4,005
98,137
27,830
45,013
4,522
20,772
115,123
34,291
51,343
4,919
24,570
131,142
34,760
58,741
6,688
30,953
137,056
39,117
58,986
7,112
31,841
137,879
38,799
59,307
7,305
32,468
145,889
41,476
63,044
7,463
33,906
138,888
41,367
56,315
7,490
33,716
139,843
43,358
56,164
7,249
33,072
142,623
43,361
57,975
7,370
33,917
141,711
43,698
57,002
7,548
33,463
3,086
4,633
6,066
5,873
6,068
6,327
6,518
6,004
6,270
5,836
75,860
94,287
99,699
113,014
112,064
117,454
115,188
116,870
121,436
120,050
5,113
4,386
727
10,746
9,297
1,449
7,116
5,229
1,887
10,703
7,779
2,924
9,201
6,299
2,902
8,811
5,110
3,701
11,249
7,724
3,525
11,574
8,234
3,340
12,966
9,456
3,510
13,053
9,396
3,657
69,416
22,838
31,482
3,317
11,779
81,294
28,928
36,760
3,319
12,287
89,723
28,268
42,073
4,911
14,471
98,611
32,845
43,605
5,281
16,880
98,934
32,698
43,345
5,485
17,406
104,741
34,905
46,463
5,500
17,873
99,847
35,436
40,703
5,595
18,113
101,337
37,739
40,610
5,423
17,565
104,286
38,122
42,453
5,467
18,244
102,919
38,556
40,702
5,367
18,294
1,331
2,247
2,860
3,700
3,929
3,902
4,092
3,959
4,184
4,078
146,516
Bahamas and Caymans
41 Total, all currencies
42 Claims on United States
43 Parent bank
44 Other
45 Claims on foreigners
46 Other branches of parent bank
47 Banks
48 Public borrowers2
49 Nonbank foreigners
50 Other assets
51 Total payable in U.S. dollars
91,735
108,977
123,837
147,904
142,687
148,557
149,051
142,853
143,710
9,635
6,429
3,206
19,124
15,196
3,928
17,751
12,631
5,120
29,896
20,372
9,524
26,741
16,717
10,024
29,909
17,665
12,244
46,246
31,323
14,923
49,607'
34,849
14,758'
47,712
32,262
15,450
53,996
34,884
19,112
79,774
12,904
33,677
11,514
21,679
86,718
9,689
43,189
12,905
20,935
101,926
13,342
54,861
12,577
21,146
113,048
13,174
62,946
12,431
24,497
110,781
13,066
60,220
12,637
24,858
113,486
13,972
61,337
12,741
25,436
98,302
12,951
55,333
10,006
20,012
92,509'
15,101
50,726'
8,709
17,973
90,753
15,732
48,970
8,580
17,471
85,403
12,035
47,820
7,980
17,568
2,326
3,135
4,160
4,960
5,165
5,162
4,503
4,400
4,388
4,311
85,417
102,368
117,654
142,053
136,854
142,632
143,686
141,379
137,817
138,608
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, ineluding corporations that are majority owned by foreign governments, replaced
the previous, more narrowly defined claims on foreign official institutions.
Overseas Branches
3.14
A57
Continued
1982
1981
T "
U T .
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.''
All foreign countries
52 Total, all currencies
53 To United States
54
Parent bank
55
Other banks in United States
56 Nonbanks
57 To foreigners
58
Other branches of parent bank
59 Banks
60
Official institutions
61
Nonbank foreigners
62 Other liabilities
63 Total payable in U.S. dollars
64 To United States
65
Parent bank
66
Other banks in United States
67
Nonbanks
68 To foreigners
69
Other branches of parent bank
70
Banks
71
Official institutions
72
Nonbank foreigners
73 Other liabilities
306,795
364,409
401,135
450,234
444,654
462,810
462,635
459,913
461,218
463,176
58,012
28,654
12,169
17,189
66,689
24,533
13,968
28,188
91,079
39,286
14,473
37,275
124,096
48,592
17,657
57,847
120,039
45,909
16,464
57,666
128,084
49,385
16,663
62,036
137.686
56,144
19,319
62,223
144.002
55.963
19,839r
68,200'
145,091
55,092
22,613
67,386
149.996
58,439
24,404
67,153
238,912
67.496
97,711
31,936
41.769
283,510
77,640
122,922
35,668
47,280
295,411
75,773
132,116
32,473
55,049
306,785
83,336
127,794
28,715
66,940
305.040
82,038
128,536
27.685
66,781
316.232
87,831
132,111
24,696
71,594
305,643
86,423
124.889
25,997
68,334
296,364
85,800
118,504
25,126
66,934
296,634
84,679
118,982
24,626
68,347
293,705
85,864
117,095
23,008
67,738
9,871
14,210
14,690
19,353
19,575
18,494
19,306
19,547
19,493
19,475
360,971
230,810
273,857
303,281
355,030
349,602
364,228
364,063
366,986
368,992
55,811
27,519
11,915
16.377
64,530
23,403
13,771
27,356
88,157
37,528
14,203
36,426
121,130
46,766
17,479
56,885
117,362
44.170
16,313
56,879
125,121
47,456
16,564
61.101
134,582
54,252
19,005
61.325
141,038
53,932'
19,712'
67,394'
142,186
53,150
22,382
66,654
146,935
56,427
24,163
66,345
169,927
53,396
63,000
26,404
27,127
201,514
60,551
80,691
29,048
31,224
206.883
58,172
87,497
24,697
36,517
221,090
66.256
84,670
22.836
47.328
219.818
65,160
84,552
21.948
48.158
224,610
69,561
84,789
18,911
51,349
217,487
69.189
79.590
20,288
48.420
211,042
69,305
74,283
19,939
47.515
213,349
68,505
76,142
19,323
49,379
210,611
69,780
73,176
18,120
49.535
5,072
7.813
8,241
12,810
12.422
11,240
12,159
11.983
11,451
11,446
United Kingdom
74 Total, all currencies
75 To United States
76
Parent bank
77
Other banks in United States
78
Nonbanks
79 To foreigners
80
Other branches of parent bank
81
Banks
82
Official institutions
83
Nonbank foreigners
84 Other liabilities
85 Total payable in U.S. dollars
86 To United States
87
Parent bank
88
Other banks in United States
89
Nonbanks
90 To foreigners
91
Other branches of parent bank
92
Banks
Official institutions
93
94 Nonbank foreigners
95 Other liabilities
106,593
130,873
144,717
154,096
153,615
161,531
157,229
157,892
162,351
161,101
9,730
1,887
4,189
3,654
20,986
3,104
7,693
10,189
21,785
4,225
5,716
11,844
34.143
5,370
6.396
22.377
32,960
3,542
6,054
23,364
36,316
4,045
6,652
25,619
38,022
5,444
7,502
25,076
40,740
6,385
7,313
27,042
43,185
6,592
8,973
27,620
41,876
6,078
8,607
27,191
93,202
12,786
39,917
20,963
19,536
104,032
12,567
47.620
24,202
19.643
117,438
15,384
56,262
21,412
24,380
113,862
15,121
51,830
18,687
28,224
114,415
15,544
53,634
17.442
27.795
118.401
16,090
56.239
15,089
30.983
112,255
16,545
51,336
16,517
27,857
110,064
16,298
49,622
16.110
28,034
111,590
16,719
49,937
15,965
28,969
111,497
17,480
49,616
14,608
29,793
3,661
5,855
5,494
6.091
6,240
6,814
6,952
7,088
7,576
7,728
77,030
95,449
103,440
117,920
117,346
122,362
120,277
121,407
127,029
125,989
9,328
1,836
4,101
3,391
20.552
3,054
7,651
9,847
21,080
4,078
5,626
11,376
33,464
5,309
6,317
21,838
32,408
3.484
5.976
22,948
35,706
3,956
6,611
25.139
37,325
5,343
7,249
24,733
40,248
6,268
7.289
26.691
42,646
6,497
8,884
27,265
41,280
5.976
8,489
26,815
66,216
9,635
25,287
17,091
14,203
72,397
8,446
29,424
20.192
14.335
79,636
10,474
35,388
17,024
16,750
80,638
10.747
33,010
15,514
21,367
81.260
11,121
34,312
14.415
21,412
82,766
11,457
35,141
12,133
24,035
79,041
12,055
32,298
13,612
21,076
77,491
11,928
30,995
13.497
21,071
80.744
12,417
32,249
13,418
22,660
81.060
13,365
32,090
12,196
23,409
1,486
2,500
2,724
3,818
3.678
3,890
3.911
3,668
3,639
3,649
146,516
Bahamas and Caymans
96 Total, all currencies
91,735
108,977
123,837
147,904
142,687
148,557
149,051
142,853
143,710
97 To United States
98
Parent bank
99
Other banks in United States
100 Nonbanks
39,431
20,482
6,073
12,876
37,719
15,267
5,204
17,248
59,666
28,181
7,379
24,106
77,533
33,282
9,964
34,287
75.991
33,387
9,349
33,255
80.161
36,066
8.971
35,124
85,704
39,250
10,620
35,834
88.967
37,777'
11,185'
40,005
87,364
36,683
12,176
38,505
91,673
39,146
14,267
38,260
101 To foreigners
102 Other branches of parent bank
103 Banks
104 Official institutions
105 Nonbank foreigners
50,447
16,094
23,104
4,208
7,041
68,598
20,875
33,631
4,866
9,226
61,218
17,040
29,895
4,361
9,922
66,627
22.393
27.983
4,028
12,223
62,795
20,521
25,396
4,078
12,800
64.462
23,307
24,712
3,381
13,062
60,012
20,641
23,202
3,498
12,671
54,491
20.721
18,590
3.149
12,031
52,398
19,814
18,252
2,505
11,827
49,057
18,614
16,428
2,607
11,408
106 Other liabilities
107 Total payable in U.S. dollars
1,857
2,660
2,953
3.744
3.901
3.934
3,335
3.058
3,091
2,980
87,014
103,460
119,657
143,507
138,094
144,034
145,227
142,728
139,247
139,971
A58
3.15
International Statistics • June 1982
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1982
1981
Item
1979
1980
Oct.
1 Total1
2
3
4
5
6
7
8
9
10
11
12
By type
Liabilities reported by banks in the United States2
U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
Marketable
Nonmarketable4
U.S. securities other than U.S. Treasury securities5
By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries6
Dec.
Jan
Feb.
Mar.P
Apr.P
149,697
164,578
159,795
164,545
169,436
167,959
166,168
166,714
164,981
30,540
47,666
30,381
56,243
20,928
48,867
23,436
49,644
26,306
52,389
24,099
52,306
24,672
48,174
25,011
47,048
25,760
43,850
37,590
17,387
16,514
41,455
14,654
21,845
51,940
12,191
25,869
53,937
11,791
25,737
53,150
11,791
25,800
53,992
11,791
25,771
56,333
11,291
25,698
57,644
11,291
25,720
58,471
11,050
25,850
85,633
1,898
6,291
52,978
2,412
485
81,592
1,562
5,688
70,784
4,123
829
61,086
1.073
5,089
89,187
2,149
1,212
63,107
2,248
5,051
91,161
1,792
1,186
65,218
2,403
6,934
91,790
1,849
1,242
63,048
2,369
5,923
94,137
1,649
833
62,034
1,669
6,283
93,559
1,474
1,149
60,324
1,647
6,562
95,244
1,337
1,600
57,277
1,722
6,761
94,799
1,823
2,599
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial
paper, negotiable time certificates of deposit, and borrowings under repurchase
agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes bonds
and notes payable in foreign currencies.
3.16
Nov.
NOTE. Based on Treasury Department data and on data reported to the Treasury
Department by banks (including Federal Reserve Banks) and securities dealers in
the United States.
LIABILITIES TO A N D CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1982
1981
Item
1978
1979
1980
June
1 Banks' own liabilities
2 Banks' own claims1
3
Deposits
4
Other claims
5 Claims of banks' domestic customers2
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
1,918
2,419
994
1,425
580
3,748
4,206
2,507
1,699
962
3,031
3,699
2,050
1,649
347
Sept.
2,878
4,078
2,409
1,669
248
Dec.
3,740r
5,173 rr
3,403
1,770'
971 r
Mar.P
4,391
5,788
3,979
1,810
944
NOTE. Data on claims exclude foreign currencies held by U.S. monetary authorities.
Nonbank-Reported
3.17
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Data
A59
Reported by Banks in the United States
Millions of dollars, end of period
1981
Holder and type of liability
1 All foreigners
2 Banks' own liabilities
3 Demand deposits
4 Time deposits1
5 Other 2
6 Own foreign offices3
7 Banks' custody liabilities4
8 U.S. Treasury bills and certificates5
9 Other negotiable and readily transferable instruments6
10 Other
1978
1979
1982
1980
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.P
166,842
187,521
205,297
199,272
209,024
242,533
250,432
253,583'
260,882
266,985
78,661
19,218
12,427
9,705
37,311
117,196
23,303
13,623
16,453
63,817
124,791
23,462
15,076
17,583
68,670
124,454
19,072
17,647
11,225
76,511
133,308
21,127
18,101
14,129
79,951
162,433
19,677
29,381
17,371
96,003
170,972
18,334
31,161
16.451
105,026
178,882'
17,808'
36,273'
16,963
107,838'
187,247
16,506
43,171
19,270
108,300
195,704
19,483
48,073
18,524
109,624
88,181
68,202
70,325
48,573
80,506
57,595
74,819
51,281
75,717
52,005
80,100
55,312
79,460
55,131
74,701
51,142r
73,635
50,152
71,281
47,353
r
18,907
4,576
19,250
4,679
17,472
2,507
19,396
2,356
20,079
2,832
18,257
5.281
18,269
5,442
18,819
5,970
18,842
5,487
18,718
4,842
2,607
2,356
2,344
1,981
2,317
2,721
2,148
2,091
2,049
2,033
906
330
84
492
714
260
151
303
444
146
85
212
303
185
58
60
555
388
74
93
638
262
58
318
373
130
86
156
298
135
76
87
450
209
143
96
593
149
276
168
1,701
201
1,643
102
1,900
254
1,678
184
1,762
142
2,083
541
1,775
217
1,792
277
1,599
109
1,439
142
1,499
1
1,538
2
1,646
0
1,494
0
1,621
0
1,542
0
1,558
0
1,515
0
1,490
0
1,297
0
20 Official institutions8
90,742
78,206
86,624
69,796
73,080
78,696
76,405
72,846
72,059
69,611
21 Banks' own liabilities
22 Demand deposits
23 Time deposits'
24 Other 2
12,165
3,390
2,560
6,215
18,292
4,671
3,050
10,571
17,826
3,771
3,612
10,443
11,869
2,668
1,692
7,509
14,214
2,459
1,910
9,846
16,672
2,612
4,192
9,868
14,626
2,404
3,684
8,538
14,919
2,385
4,236
8,297
15,286
2,277
4,866
.'8,143
16,602
3,240
5,344
8,017
25 Banks' custody liabilities4
26 U.S. Treasury bills and certificates5
27 Other negotiable and readily transferable
instruments5
28 Other
78,577
67,415
59,914
47,666
68,798
56,243
57,927
48,867
58,866
49,644
62,024
52,389
61,778
52,306
57,927
48,174'
56,773
47,048
53,009
43,850
10,992
170
12,196
52
12,501
54
9,013
46
9,171
51
9,587
47
9,445
27
9,717r
37'
9,685
40
8,974
185
29 Banks*
57,423
88,316
96,415
103,348
109,204
135,167
145,577
150,537 r
157,615
162,484
30 Banks' own liabilities
31 Unaffiliated foreign banks
32
Demand deposits
33
Time deposits1
34
Other 2
35 Own foreign offices3
52,626
15,315
11,257
1,429
2,629
37,311
83,299
19,482
13,285
1,667
4,530
63,817
90,456
21,786
14,188
1,703
5,895
68,670
92,786
16,275
11,346
1,631
3,298
76,511
98,369
18,418
12,908
1,837
3,673
79,951
123,452
27,449
11,614
9,169
6,666
96,003
133,691
28,664
10,893
10,472
7,299
105,026
139,787'
31,948
10,444
13,400
8,104
107,838'
146,413
38,116
9,267
18,316
10,534
108,297
149,746
40,121
11,219
19,052
9,849
109,624
4,797
300
5,017
422
5,959
623
10,562
1,574
10,835
1,584
11,715
1,683
11,886
1,853
10,751
1,876
11,202
2,213
12,738
2,592
2,425
2,072
2,415
2,179
2,748
2,588
4,091
4,897
4,169
5,082
4,421
5,611
4,858
5,176
4,405
4,470
4,734
4,255
5,986
4,160
40 Other foreigners
16,070
18,642
19,914
24,148
24,424
25,949
26,303
28,109'
29,158
32,858
41 Banks' own liabilities
42 Demand deposits
43 Time deposits
44 Other 2
12,964
4,242
8,353
368
14,891
5,087
8,755
1,048
16,065
5,356
9,676
1,033
19,496
4,873
14,266
358
20,170
5,373
14,280
517
21,671
5,189
15,963
520
22,282
4,906
16,918
458
23,878'
4,843'
18,561'
474
25,097
4,754
19,846
497
28,763
4,874
23,401
489
3,106
285
3,751
382
3,849
474
4,652
656
4,253
635
4,278
698
4,021
755
4,231
815
4,061
782
4,095
769
2,557
264
3,247
123
3,185
190
3,659
337
3,309
309
3,268
312
2,981
284
3,081
335
2,998
281
2,992
334
11,007
10,984
10,745
9,424
9,985
10,547
10,470
10,916
11,215
11,460
and regional
11 Nonmonetary international
organizations7
12 Banks' own liabilities
13 Demand deposits
14 Time deposits1
15 Other 2
16 Banks' custody liabilities4
17 U.S. Treasury bills and certificates
18 Other negotiable and readily transferable Instruments 6
19 Other
36 Banks' custody liabilities4
37 U.S. Treasury bills and certificates
38 Other negotiable6 and readily transferable
instruments
39 Other
45 Banks' custody liabilities4
46 U.S. Treasury bills and certificates
47 Other negotiable and readily transferable instruments6
48 Other
49 MEMO: Negotiable time certificates of
deposit in custody for foreigners
1. Excludes negotiable time certificates of deposit, which are included in "Other
negotiable and readily transferable instruments." 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 subsidiaries consolidated in "Consolidated Report of Condition" filed with bank regulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign
banks: principally amounts due to head office or parent foreign bank, and foreign
branches, agencies or wholly owned subsidiaries of head office or parent foreign
bank.
4. Financial claims on residents of the United States, other than long-term securities, held by or through reporting banks.
5. Includes nonmarketable certificates of indebtedness and Treasury bills issued
to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time certificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments and the Bank for
International Settlements.
9. Excludes central banks, which are included in "Official institutions."
A60
3.17
International Statistics • June 1982
Continued
1981
Area and country
1978
1979
1982
1980
Oct.
Nov.
Dec.A
Jan.
Feb.
Mar.
1 Total
166,842
187,521
205,297
199,272
209,024
242,533
250,432
253,583'
260,882
2 Foreign countries
164,235
185,164
202,953
197,292
206,708
239,812
248,284
251,492'
258,832
85,172
513
2,550
1,946
346
9,214
17.283
826
7,739
2,402
1,271
330
870
3,121
18,225
157
14,272
254
3,440
82
330
90,952
413
2,375
1,092
398
10,433
12,935
635
7,782
2,337
1,267
557
1,259
2,005
17,954
120
24,700
266
4,070
52
302
90,897
523
4,019
497
455
12,125
9,973
670
7,572
2,441
1,344
374
1,500
1,737
16,689
242
22,680
681
6,939
68
370
77,652
583
3,644
232
187
7,125
6,555
496
5,677
2,173
1,449
424
975
1,609
17,114
252
23,985
265
4,472
42
396
82,302
595
3,989
306
196
7,385
7,211
428
5,656
2,351
1,642
358
954
1,508
18,937
197
24,258
380
5,394
72
486
90,622
587
4,117
333
296
8,486
7,665
463
7,290
2,773
1,457
354
916
1,545
18,878
518
28,230
375
5,798
49
493
89,708
719
3,954
512
157
8,078
6,953
469
7,104
2,808
1,245
301
1,024
1,274
18,927
336
30,581
215
4,710
69
271
91,549'
647
3.252
524
292
8,042
6,668
535
6,495
2,926
1,129
275
946
1,480
18,590
216
33,773r
219
5,204
52
284
93,482
530
3,004
514
273
7,792
7,695
472
4,300
3,111
1,518
272
1,136
1,358
19,379
283
35,124
223
6,036
44
418
3 Europe
4 Austria
5 Belgium-Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21 Other Western Europe 1
22 U.S.S.R
23 Other Eastern Europe 2
24 Canada
6,969
7,379
10,031
8,934
10,091
10,256
11,572
10,999
10,780
25 Latin America and Caribbean
26 Argentina
27 Bahamas
28 Bermuda
29 Brazil
30 British West Indies
31 Chile
32 Colombia
33 Cuba
34 Ecuador
35 Guatemala 3
36 Jamaica3
37 Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41 Uruguay
42 Venezuela
43 Other Latin America and Caribbean..
31,638
1,484
6,752
428
1,125
5,974
398
1,756
13
322
416
52
3,467
308
2,967
363
231
3,821
1,760
49,686
1,582
15,255
430
1,005
11,138
468
2,617
13
425
414
76
4,185
499
4,483
383
202
4,192
2,318
53,170
2,132
16,381
670
1,216
12,766
460
3,077
6
371
367
97
4,547
413
4,718
403
254
3,170
2,123
59,896
1,929
21,325
721
1,265
10,472
538
2,759
6
403
419
147
5,902
2,771
4,599
379
249
4,044
1,969
62,011
2,012
23,625
624
1,285
9,524
505
2,776
7
516
444
96
6,047
2,896
4,904
473
266
3,971
2,041
84,504
2,445
34,380
765
1,548
17,692
664
2,993
9
434
479
87
7,163
3,073
4,852
694
367
4,245
2,612
92,203
2,879
43,522
680
1,608
17,868
771
2,861
7
355
485
120
6,668
3,042
3,478
594
481
4,557
2,227
94,411'
2,897
43,589
855
1,803
18,783
815
2,924
10
370
519
100
7,246
3,135
3,338
531
478'
4,575'
2,443
97,850
3,036
44,649
1,113
1,339
18,774
951
2,654
7
513
590
129
7,578
3,434
4,190
532
323
5,113
2,924
44 Asia
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle-East oil-exporting countries 4 ..
Other Asia
36,492
33,005
42,420
46,851
48,632
49,810
50,658
50,290
52,547
67
502
1,256
790
449
688
21,927
795
644
427
7,534
1,414
49
1,393
1,672
527
504
707
8,907
993
795
277
15,300
1,879
49
1,662
2,548
416
730
883
16,281
1,528
919
464
14,453
2,487
85
2,189
4,158
433
1,269
418
20,204
1,291
691
274
12,196
3,643
200
2,147
4,090
514
985
475
19,988
1,322
736
409
13,603
4,163
158
2,082
3,950
385
640
589
20,559
2,013
876
534
13,172
4,852
183
2,227
3,946
512
1,230
546
20,051
2,146
757
369
13,623
5,068
215
2.253
4,302
414
1,241
507
20,664
2,162
739
494
13,564
3,735
257
2,213
4,190
435
1,127
449
21,901
2,138
671
340
14,799
4,028
57 Africa
58 Egypt
59 Morocco
60 South Africa
61 Zaire
62 Oil-exporting countries5
63 Other Africa
2,886
404
32
168
43
1,525
715
3,239
475
33
184
110
1,635
804
5,187
485
33
288
57
3,540
783
2,535
343
28
282
44
1,165
672
2,381
328
37
202
56
830
929
3,201
360
32
420
134
1,395
860
3,065
571
36
252
33
1,207
966
2,814
339
35
368
40
920
2,398
297
36
330
69
627
1,039
64 Other countries
65 Australia
66 All other
1,076
838
239
904
684
220
1,247
950
297
1,423
1,212
211
1,291
1,065
226
1,419
1,223
196
1,078
853
225
1,430
1,204
226
1,775
1,550
225
67 Nonmonetary international and regional
organizations
68 International
69 Latin American regional
70 Other regional6
2,607
1,485
808
314
2,356
1,238
806
313
2,344
1,157
890
296
1,981
945
724
312
2,317
1,128
797
391
2,721
1,661
710
350
2,148
1,072
17
1,059
2,091
1,082
706
303
2,049
1,081
634
335
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 Democratic Republic, Hungary, Poland, and Romania.
3. Included in "Other Latin America and Caribbean'' through March 1978.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
1,112
6. Asian, African, Middle Eastern, and European regional organizations, except
the Bank for International Settlements, which is included in "Other Western
Europe."
^
Liabilities and claims of banks in the United States were increased, beginning
in December 1981, by the shift from foreign branches to International Banking
Facilities in the United States of liabilities to, and claims on, foreign residents.
Bank-Reported
3.18
Data
A61
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1981
Area and country
1979
1978
1982
1980
Nov.
Oct.
Dec.A
Jan.
Feb.
Mar.
Apr .P
1 Total
115,545
133,943
172,592
197,584
208,754
250,136
255,456
264,239'
276,123
288,127
2 Foreign countries
115,488
133,906
172,514
197,540
208,713
250,080
255,405
264,192'
276,066
288,084
24,201
140
1,200
254
305
3,735
845
164
1,523
677
299
171
1,120
537
1,283
300
10,147
363
122
360
657
28,388
284
1,339
147
202
3,322
1,179
154
1,631
514
276
330
1,051
542
1,165
149
13,795
611
175
268
1,254
32,108
236
1,621
127
460
2,958
948
256
3,364
575
227
331
993
783
1,446
145
14,917
853
179
281
1,410
34,678
138
1,761
187
397
2,563
841
235
4,322
567
230
353
1,627
871
1,475
153
16,047
954
148
203
1,605
39,637
179
2,025
208
528
3,261
979
255
4,559
570
281
390
1,693
1,339
1,963
144
18,204
1,016
197
248
1,596
48,711
127
2,832
186
549
4,069
936
333
5,186
685
384
529
2,100
1,206
2,211
421
23,431
1,224
209
367
1,725
51,584
198
2,788
226
555
4,682
1,084
378
5,461
729
384
584
2,171
1,329
1,845
464
24,986
1,213
235
455
1,816
53,089'
172
3,259
253
573
4,928'
874
321'
5,604'
808
437
666
2,505
1,504
2,001'
522
25,152'
1,243
192
262
1,813'
56,862
130
3,778
285
574
5,572
1,123
325
5,270
956
447
770
2,622
1,550
1,707
496
27,784
1,200
308
218
1,750
59,399
244
3,885
266
522
5,037
1,469
282
5,109
750
465
816
2,499
1,452
1,571
529
30,823
1,240
282
417
1,762
3 Europe
4 Austria
5 Belgium-Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
in Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21 Other Western Europe 1
2.2 U.S.S.R
23 Other Eastern Europe 2
5,152
4,143
4,810
7,456
7,079
9,041
9,478
9,830'
10,913
11,822
25 Latin America and Caribbean
26 Argentina
27 Bahamas
28 Bermuda
29 Brazil
30 British West Indies
31 Chile
32 Colombia
33 Cuba
34 Ecuador
35 Guatemala 3
36 Jamaica3
37 Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41 Uruguay
42 Venezuela
43 Other Latin America and Caribbean
57,565
2,281
21,555
184
6,251
9,694
970
1,012
0
705
94
40
5,479
273
3,098
918
52
3,474
1,485
67,993
4,389
18,918
496
7,713
9,818
1,441
1,614
4
1,025
134
47
9,099
248
6,041
652
105
4,657
1,593
92,992
5,689
29,419
218
10,496
15,663
1,951
1,752
3
1,190
137
36
12,595
821
4,974
890
137
5,438
1,583
108,289
5,887
36,921
335
10,374
17,262
2,567
1,529
4
1,282
127
40
17,153
933
5,798
796
166
5,273
1,843
113,073
6,044
39,438
255
10,823
17,890
2,643
1,598
3
1,328
123
45
18,505
951
5,655
705
148
5,129
1,790
137,718
7,506
43,351
326
16,874
21,579
3,682
2,018
3
1,531
124
62
22,358
1,068
6,719
1,213
157
7,046
2,102
143,098
8,704
44,739
481
17,379
21,021
4,169
2,112
7
1,723
119
177
23,098
950
6,918
1,432
267
7,307
2,494
147,505'
8,826
45,636'
449
17,846'
21,949'
4,370
2,067
9
1,752
119
115
24,238'
1,131
7,272'
1,432
240
7,704
2,349'
152,196
8,737
47,468
420
18,723
22,922
4,449
1,996
3
1,827
106
165
25,174
909
7,312
1,513
230
7,997
2,245
158,662
11,024
47,660
575
19,589
22,348
4,737
2,157
137
1,961
118
159
26,363
896
8,015
1,653
319
8,646
2,306
44 Asia
China
Mainland
45
46
Taiwan
47 Hong Kong
48 India
49 Indonesia
50 Israel
51 Japan
52 Korea
53 Philippines
54 Thailand
55 Middle East oil-exporting countries4
56 Other Asia
25,362
30,730
39,078
43,263
45,008
49,690
45,960
48,165
50,093
51,968
4
1,499
1,479
54
143
888
12,646
2,282
680
758
3,125
1,804
35
1,821
1,804
92
131
990
16,911
3,793
737
933
1,548
1,934
195
2,469
2,247
142
245
1,172
21,361
5,697
989
876
1,432
2,252
148
2,349
3,786
176
267
1,200
22,790
6,632
1,448
559
1,381
2,526
199
2,262
3,923
179
329
1,325
23,785
6,733
1,621
546
1,569
2,537
107
2,461
4,115
134
346
1,561
26,682
7,311
1,817
564
1,597
2,996
85
2,643
4,091
148
325
1,318
24,109
6,567
1,766
527
1,613
2,767
65'
2,215
4,287
188
330
1,467
26,081
6,272
1,989
559
1,981'
2,730
84
2,300
5,440
212
356
1,239
25,996
6,549
2,270
513
1,997
3,138
112
2,268
5,084
196
308
1,164
27,379
6,984
2,294
566
2,397
3,213
2,221
107
82
860
164
452
556
1,797
114
103
445
144
391
600
2,377
151
223
370
94
805
734
2,796
147
269
848
102
534
896
2,803
137
243
904
100
531
888
3,546
238
284
1,011
112
657
1,244
3,822
259
273
948
98
786
1,458
4,019
293
273
1,249
93
593
1,518
4,222
327
294
1,417
89
636
1,459
4,420
347
312
1,344
101
727
1,589
988
877
111
855
673
182
1,150
859
290
1,059
962
97
1,114
989
125
1,374
1,197
177
1,463
1,280
183
1,583
1,385
198
1,780
1,504
276
1,812
1,569
243
56
36
78
43
40
56
51
47
57
43
24 Canada
57 Africa
58 Egypt
59 Morocco
60 South Africa
61 Zaire
62 Oil-exporting countries5
63 Other
64 Other countries
65 Australia
66 All other
67 Nonmonetary international and regional
organizations6
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Democratic Republic, Hungary, Poland, and Romania.
3. Included in "Other Latin America and Caribbean" through March 1978.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in "Other
Western Europe."
NOTE. Data for period prior to April 1978 include claims of banks' domestic
customers on foreigners.
A Liabilities and claims of banks in the United States were increased, beginning
in December 1981, by the shift from foreign branches to International Banking
Facilities in the United States of liabilities to, and claims on, foreign residents.
A62
3.19
International Statistics • June 1982
BANKS' OWN A N D DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period
1981
Type of claim
1978
1979
1982
1980
Oct.
Nov.
Dec. A
208,754
26,397
84,651
58,477
13,637
44,840
39,228
250,136
30,930
96,607
73,462
21,992
51,470
49,137
Jan.
Feb.
Mar.
1 Total
126,787
154,030
198,698
2
3
4
5
6
7
8
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
172,592
20,882
65,084
50,168
8,254
41,914
36,459
11,243
480
20,088
955
26,106
885
37,253'
1,378'
43,143
1,512
Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices'
Unaffiliated foreign banks
Deposits
Other
All other foreigners
9 Claims of banks' domestic customers2 ..
287,389'
197,584
25,436
78,988
55,711
13,148
42,563
37,449
Apr.P
319,266
255,456
33,325
96,268
75,951
23,485
52,466
49,912
264,239'
33,311'
96,821'
82,403'
25,683'
56,720'
51,704'
276,123
33,474
101,428
87,000
28,818
58,183
54,221
288,127
34,767
105,407
91,734
29,109
62,625
56,219
11 Negotiable and readily transferable
5,396
13,100
15,574
25,752'
32,328
5,366
6,032
9,648
10,123
9,303
15,030
18,021
22,714
29,565'
30,273
13,668
22,253
24,249
12 Outstanding collections and other
13 MEMO: Customer liability on
Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5
40,000
42,092'
43,768'
40,781''
n.a.
4. Data for March 1978 and for period before that are outstanding collections
only.
5. Includes demand and time deposits and negotiable and nonnegotiable certificates of deposit denominated in U.S. dollars issued by banks abroad. For description of changes in data reported by nonbanks, see July 1979 BULLETIN, p. 550.
A Liabilities and claims of banks in the United States were increased, beginning
in December 1981, by the shift from foreign branches to International Banking
Facilities in the United States of liabilities to, and claims on, foreign residents.
NOTE. Beginning April 1978, data for banks' own claims are given on a monthly
basis, but the data for claims of banks' own domestic customers are available on
a quarterly basis only.
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.
3.20
39,221'
41,628'
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
1980
Dec.
Dec.
Dec.
1982
1981
Maturity; by borrower and area
1 Total
2
3
4
5
6
7
By borrower
Maturity of 1 year or less1
Foreign public borrowers
All other foreigners
Maturity of over 1 year'
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less1
Europe
9 Canada
10 Latin America and Caribbean
11
12 Africa
13 All other2
Maturity of over 1 year1
14
Europe
15 Canada
16 Latin America and Caribbean
17
18 Africa
19 All other 2
8
1. Remaining time to maturity.
2. Includes nonmonetary international and regional organizations.
June
Sept
Dec.4
Mar.P
73,635
86,181
106,748
117,445
122,257
153,355
174,697
58,345
4,633
53,712
15,289
5,395
9,894
65,152
7,233
57,919
21,030
8,371
12,659
82,555
9,974
72,581
24,193
10,152
14,041
91,982
11,733
80,248
25,463
11,022
14,441
94,722
12,955
81,767
27,535
12,410
15,125
115,433
15,073
100,359
37,922
15,573
22,349
132,886
16,579
116,307
41,811
17,054
24,757
15,169
2,670
20,895
17,545
1,496
569
15,235
1,777
24,928
21,641
1,077
493
18,715
2,723
32,034
26,686
1,757
640
21,095
3,319
33,514
31,489
1,768
797
22,898
3,906
35,524
29,296
2,324
774
27,702
4,557
48,286
31,463
2,501
923
34,061
5,628
58,493
30,595
2,886
1,224
3,142
1,426
8,464
1,407
637
214
4,160
1,317
12,814
1,911
655
173
5,118
1,448
15.075
1,865
507
179
6,307
1,317
15,448
1,680
551
159
6,424
1,347
17,478
1,565
548
172
8,093
1,754
25,031
1,886
897
261
8,478
1,863
27,849
2,214
1,093
315
^ Liabilities and claims of banks in the United States were increased, beginning
in December 1981, by the shift from foreign branches to International Banking
Facilities in the United States of liabilities to, and claims on, foreign residents.
Nonbank-Reported
3.21
Data
A63
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks 1
Billions of dollars, end of period
1980
Area or country
19782
1981
1982
1979
Mar.
June
Sept.
Dec.
Mar.
June
Sept/
Dec/
Mar?
266.2
303.9
308.5
328.8
339.3
352.0
370.6
382.5
399.4
411.3
408.5
124.7
9.0
12.2
11.3
6.7
4.4
2.1
5.3
47.3
6.0
20.6
138.4
11.1
11.7
12.2
6.4
4.8
2.4
4.7
56.4
6.3
22.4
141.3
10.8
12.0
11.4
6.2
4.3
2.4
4.3
57.6
6.9
25.4
154.2
13.1
14.1
12.7
6.9
4.5
2.7
3.3
64.4
7.2
25.5
158.8
13.6
13.9
12.9
7.2
4.4
2.8
3.4
66.7
7.7
26.1
162.1
13.0
14.1
12.1
8.2
4.4
2.9
5.0
67.4
8.4
26.5
167.9
13.5
14.5
13.2
7.7
4.6
3.2
5.1
68.2
8.8
29.1
168.2
13.8
14.7
12.1
8.4
4.1
3.1
5.2
67.0
10.8
28.9
172.0
14.1
16.0
12.7
8.6
3.7
3.4
5.1
68.7
11.7
28.0
173.2
13.2
15.2
12.8
9.7
4.0
3.7
5.4
69.0
10.8
29.3
170.3
13.0
15.5
12.4
8.8
4.0
4.1
5.3
68.5
11.1
27.6
13 Other developed countries
14 Austria
15 Denmark
16 Finland
17 Greece
18 Norway
19 Portugal
20
21 Turkey
22 Other Western Europe
23 South Africa
24 Australia
19.4
1.7
2.0
1.2
2.3
2.1
.6
3.5
1.5
1.3
2.0
1.4
19.9
2.0
2.2
1.2
2.4
2.3
.7
3.5
1.4
1.4
1.3
1.3
18.8
1.7
2.1
1.1
2.4
2.4
.6
3.5
1.4
1.4
1.1
1.2
20.3
1.8
2.2
1.3
2.5
2.4
.6
3.9
1.4
1.6
1.5
1.2
20.6
1.8
2.2
1.2
2.6
2.4
.7
4.2
1.3
1.7
1.2
1.2
21.6
1.9
2.3
1.4
2.8
2.6
.6
4.4
1.5
1.7
1.1
1.3
23.5
1.8
2.4
1.4
2.7
2.8
.6
5.5
1.5
1.8
1.5
1.4
24.8
2.1
2.3
1.3
3.0
2.8
.8
5.7
1.4
1.8
1.9
1.7
26.4
2.2
2.5
1.4
2.9
3.0
1.0
5.8
1.5
1.9
2.5
1.9
28.4
2.0
2.4
1.7
2.7
3.1
1.1
6.6
1.4
2.1
2.8
2.5
30.4
2.1
2.5
1.6
2.8
3.2
1.2
7.1
1.5
2.2
3.2
3.1
25 OPEC countries3
26 Ecuador
27 Venezuela
28 Indonesia
29 Middle East countries
30 African countries
22.7
1.6
7.2
2.0
9.5
2.5
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
21.4
1.9
8.5
1.9
6.7
2.4
22.7
2.1
9.1
1.8
6.9
2.8
21.7
2.0
8.3
2.1
6.7
2.6
22.2
2.0
8.7
2.1
6.8
2.6
23.5
2.1
9.2
2.5
7.1
2.6
24.4
2.2
9.6
2.5
7.6
2.5
24.5
2.3
9.3
2.7
8.1
2.1
31 Non-OPEC developing countries
52.6
63.0
63.7
67.7
73.0
77.4
81.9
84.7
90.0
95.9
94.2
3.0
14.9
1.6
1.4
10.8
1.7
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
3.7
2.6
15.9
1.8
3.9
9.4
16.8
4.0
2.4
17.0
1.8
4.7
8.5
17.3
4.8
2.5
18.2
1.7
3.8
9.2
17.6
5.5
2.5
20.0
1.8
4.2
9.3
19.0
5.8
2.6
21.5
2.0
4.4
9.3
18.9
5.6
2.2
21.8
1.8
4.4
.0
2.9
.2
1.0
3.9
.6
2.8
1.2
.2
.1
3.4
.2
1.3
5.4
1.0
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
1.1
4.6
1.5
.5
.1
4.1
.2
1.1
7.3
1.1
4.8
1.5
.5
.2
4.2
.3
1.5
7.1
1.1
5.1
1.6
.6
.2
4.4
.3
1.3
7.7
1.2
4.8
1.6
.5
.2
4.6
.3
1.8
8.8
1.4
5.1
1.5
.7
.2
5.1
.3
1.5
8.6
1.4
5.6
1.4
.8
.2
5.1
.3
2.0
9.4
1.7
6.0
1.5
1.0
.2
5.1
.5
1.6
8.5
1.7
5.8
1.3
1.0
Other Africa 4
.4
.6
.2
1.4
.6
.6
.2
1.7
.7
.6
.2
1.8
.8
.5
.2
1.9
.6
.6
.2
2.1
.8
.7
.2
2.1
.8
.6
.2
2.2
.7
.5
.2
2.1
1.0
.7
.2
2.2
1.1
.7
.2
2.3
1.3
.7
.2
2.3
52 Eastern Europe
53 U.S.S.R
54 Yugoslavia
55 Other
6.9
1.3
1.5
4.1
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
7.4
.4
2.3
4.6
7.7
.4
2.4
4.8
7.7
.5
2.5
4.8
7.7
.4
2.5
4.7
7.7
.6
2.5
4.7
7.1
.4
2.3
4.4
31.0
10.4
.7
7.4
.8
3.0
.1
4.2
3.9
.5
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
44.3
13.7
.6
9.8
1.2
5.6
.2
6.9
5.9
.4
44.6
13.2
.6
10.1
1.3
5.6
.2
7.5
5.6
.4
47.0
13.7
.6
10.6
2.1
5.4
.2
8.1
5.9
.3
53.1
15.2
.7
11.7
2.3
6.5
.2
8.4
7.3
.9
59.2
17.9
.7
12.6
2.4
6.9
.2
10.3
8.1
.3
61.7
21.3
.8
12.0
2.2
6.7
.2
10.3
8.0
.1
62.9
18.7
.7
12.3
3.1
7.5
.2
11.7
8.6
.1
64.1
19.5
.6
11.5
3.2
6.8
.2
13.0
9.3
.1
9.1
11.7
13.2
14.3
13.7
14.0
14.9
15.7
18.2
18.9
17.9
1
2 G-10 countries and Switzerland
3 Belgium-Luxembourg
4 France
5 Germany
6 Italy
7 Netherlands
8 Sweden
9 Switzerland
10 United Kingdom
11 Canada
12 Japan
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
Asia
China
Mainland
Taiwan
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
Africa
Egypt
Morocco
56 Offshore banking centers
57 Bahamas
58 Bermuda
59 Cayman Islands and other British West Indies
60 Netherlands Antilles
61 Panama5
62 Lebanon
63 Hong Kong
64 Singapore
65 Others 6
66 Miscellaneous and unallocated7
1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.13 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.17 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches). However,
see also footnote 2.
2. Beginning with data for June 1978, the claims of the U.S. offices
in this table include only banks' own claims payable in dollars. For earlier dates
the claims of the U.S. offices also include customer claims and foreign currency
claims (amounting in June 1978 to $10 billion).
3. In addition to the Organization of Petroleum Exporting Countries shown
individually, this group includes other members of OPEC (Algeria, Gabon, Iran,
Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as
well as Bahrain and Oman (not formally members of OPEC).
4. Excludes Liberia.
5. Includes Canal Zone beginning December 1979.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.
A64
International Statistics • June 1982
3.22
LIABILITIES1 TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises
in the
F
United States
Millions of dollars, end of period
1980
Type, and area or country
1978
1979
1981
1980
Dec.
Mar.
June
Sept.
Dec.P
1 Total
14,952
17,174
21,652
21,652
21,672
21,192
22,780
21,495
2 Payable in dollars
3 Payable in foreign currencies2
11,523
3.429
14,100
3,075
17,944
3,709
17,944
3,709
18,145
3,528
17,944
3,247
19,772
3,009
18,046
3,449
By type
4 Financial liabilities
5 Payable in dollars
6 Payable in foreign currencies
6,368
3,853
2,515
7,485
5,215
2,270
11,135
8,363
2,772
11,135
8,363
2,772
11,506
8,873
2,633
11,414
9,082
2,333
12,426
10,227
2,199
11,073
8,649
2,424
7 Commercial liabilities
8 Trade payables
9 Advance receipts and other liabilities
8,584
4,001
4,583
9,690
4,421
5,268
10,517
4,708
5,810
10,517
4,708
5,810
10,166
4,758
5,409
9,777
4,377
5,401
10,355
4,351
6,003
10,422
4,598
5,823
7,670
914
8,885
805
9,581
936
9,581
936
9,272
895
8,862
915
9,545
810
9,397
1,025
3,971
293
173
366
391
248
2,167
4,658
345
175
497
829
170
2,463
6,320
487
327
582
663
354
3,772
6,320
487
327
582
663
354
3,772
6,019
558
324
498
544
315
3,668
5,955
532
367
451
746
321
3,422
7,416
492
825
430
651
388
4,478
6,071
404
560
468
751
691
3,082
10
11
12
13
14
15
16
17
18
Payable in dollars
Payable in foreign currencies
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
19
Canada
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
27
28
29
30
31
32
33
34
35
36
37
38
39
Japan
Middle East oil-exporting countries3
247
532
964
964
1,096
978
977
935
1,357
478
4
10
194
102
49
1,483
375
81
18
514
121
72
3,103
964
1
23
1,452
99
81
3,103
964
1
23
1,452
99
81
3,483
1,217
1
19
1,458
97
85
3,592
1,272
1
20
1,534
98
91
3,195
1,019
0
20
1,363
107
90
3,258
1,279
7
22
1,200
109
98
784
717
32
804
726
31
723
644
38
723
644
38
880
766
51
861
741
29
805
687
30
764
664
24
5
2
4
1
11
1
11
1
6
1
5
0
3
1
3
0
5
4
15
15
23
24
29
43
3,047
97
321
523
246
302
824
3,636
137
467
545
227
310
1,077
4,197
90
582
679
219
493
1,017
4,197
90
582
679
219
493
1,017
3,801
83
547
640
246
385
881
3,892
72
558
617
225
375
950
3,955
78
575
590
238
563
925
3,752
71
573
551
221
415
863
Africa
Oil-exporting countries4
All other
5
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
40
Canada
667
868
806
806
740
652
742
853
41
42
43
44
45
46
47
Latin America
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
997
25
97
74
53
106
303
1,323
69
32
203
21
257
301
1,244
8
73
111
35
326
307
1,244
8
73
111
35
326
307
1,287
1
111
84
16
421
253
1,149
4
72
54
34
319
290
1,087
3
113
61
11
345
273
985
2
67
67
2
293
276
2,927
448
1,518
2,902
494
1,014
3,001
802
890
3,001
802
890
3,071
810
955
2,787
867
837
3,221
775
881
3,466
943
909
48
49
50
Japan
Middle East oil-exporting countries3
51
52
Africa
Oil-exporting countries4
743
312
728
384
814
514
814
514
828
519
676
392
757
355
702
344
53
All other 5
203
233
456
456
440
622
593
664
1. For a description of the changes in the International Statistics tables, see July
1979 BULLETIN, 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, Qatar, Saudi Arabia and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.
Nonbank-Reported
3.23
CLAIMS O N U N A F F I L I A T E D F O R E I G N E R S
United States 1
Millions of dollars, end of period
A65
Reported by Nonbanking Business Enterprises in the
1980
Type, and area or country
Data
1981
1980
1979
1978
Dec.
Mar.
June
Sept.
Dec.P
1 Total
28,001
31,315
34,469
34,469
37,619
35,152
34,300
34,810
2 Payable in dollars
3 Payable in foreign currencies 2
24,998
3,003
28,122
3,193
31,543
2,926
31,543
2,926
34,613
3,007
32,245
2,907
31,332
2,968
31,744
3,066
By type
4 Financial claims
5 Deposits
Payable in dollars
6
Payable in foreign currencies
7
Other
financial claims
8
9
Payable in dollars
10
Payable in foreign currencies
16,644
11,201
10,133
1,068
5,443
3,874
1,569
18,443
12,809
11,893
916
5,634
3,808
1,826
19,844
14,010
13,235
775
5,834
4,152
1,683
19,844
14,010
13,235
775
5,834
4,152
1,683
22,175
16,446
15,651
795
5,729
4,082
1,646
20,027
14,398
13,672
725
5,629
3,992
1,638
19,394
13,598
12,866
732
5,796
4,116
1,679
20,018
14,307
13,653
654
5,711
3,785
1,926
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
11,357
10,798
559
12,872
12,178
694
14,625
13,906
720
14,625
13,906
720
15,445
14,644
801
15,125
14,295
830
14,906
14,047
859
14,791
13,880
912
14
15
10,991
366
12,422
450
14,157
468
14,157
468
14,879
566
14,581
544
14,349
556
14,305
486
5,225
48
178
510
103
98
4,031
6,167
32
177
409
53
73
5,111
6,098
195
337
230
32
59
4,968
6,098
195
337
230
32
59
4,968
6,054
170
411
213
42
90
4,856
5,114
174
377
139
34
3,948
4,798
26
348
320
68
66
3,645
4,558
43
325
244
47
118
3,488
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
%
23
Canada
4.549
4,984
5,057
5,057
6,611
6,159
6,009
6,060
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
5,714
3,001
80
151
1,291
162
157
6,290
2,765
30
163
2,007
157
143
7,709
3,448
135
96
2,684
208
137
7,709
3,448
135
96
2,684
208
137
8,568
3,957
13
22
3,404
168
131
7,891
3,240
33
20
3,3%
162
143
7,607
3,239
15
66
3,195
271
143
8,259
3,812
18
30
3,253
298
146
920
305
18
706
199
16
710
177
20
710
177
20
691
191
17
609
99
19
642
109
29
923
363
37
181
10
253
49
238
26
238
26
214
27
216
39
222
41
168
46
55
44
32
32
36
37
116
51
3,983
144
609
399
267
198
824
4,909
202
727
589
298
272
901
5,502
233
1,127
589
318
351
928
5,502
233
1,127
589
318
351
928
5,807
277
900
597
347
461
1,190
5,467
235
783
572
308
474
1,067
5,347
220
767
580
308
404
1,032
5,310
233
771
554
303
427
964
31
32
33
Japan
Middle East oil-exporting countries 3
34
35
Africa
Oil-exporting countries 4
36
All other 5
37
38
39
40
41
42
43
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
1,094
849
896
896
1,034
991
1,011
965
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,546
109
215
628
9
505
291
2,869
21
197
645
16
698
343
3,753
21
108
861
34
1,091
409
3,753
21
108
861
34
1,091
409
3,838
15
170
799
15
1,053
439
3,793
29
192
823
34
1,113
420
3,726
18
241
726
13
983
454
3,446
12
223
668
12
1,015
422
3,108
1,006
713
3,451
1,177
765
3,505
1,045
819
3,505
1,045
819
3,761
1,294
923
3,767
1,218
934
3,653
1,104
828
3,868
1,215
888
52
53
54
Japan
Middle East oil-exporting countries 3
55
56
Africa
Oil-exporting countries 4
447
136
554
133
651
151
651
151
678
143
703
137
717
154
744
151
57
All other 5
178
240
318
318
327
404
451
458
1. For a description of the changes in the International Statistics tables, see July
1979 BULLETIN, p. 550.
2. Prior to December 1978, foreign currency data include only liabilities denominated in foreign currencies with an original maturity of less than one year.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar. Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.
A66
International Statistics • June 1982
3.24
F O R E I G N T R A N S A C T I O N S IN S E C U R I T I E S
Millions of dollars
1982
Transactions, and area or country
1980
1981
1982
1981
Jan.Apr.
Nov.
Oct.
Dec.
Jan.
Feb.
Mar.
Apr.P
U.S. corporate securities
STOCKS
1 Foreign purchases
2 Foreign sales
3 Net purchases, or sales ( - ) . . .
4 Foreign countries
5
6
7
8
9
10
11
12
13
14
15
16
17
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
Nonmonetary international and
regional organizations....
BONDS
40,293
34,870
40,582
34,821
9,578
8,343
2,839
2.792
2,689
2,494
2,940
2,740
2,016
1,748
2,524
1,988
2,679
2,506
2,359
2,101
5,423
5,761
1,235
47
195
200
268
536
173
258
5,405
5,737
1,217
53
207
199
263
537
164
252
3,112
490
172
-328
308
2,523
887
148
1,206
16
-1
38
3,599
889
-28
37
276
2,210
783
-30
1.140
284
7
-46
937
-26
98
33
-119
910
-143
52
333
17
-2
23
46
21
6
13
-97
86
-47
7
164
-117
0
-2
109
-7
-4
28
0
96
7
54
46
-7
1
-3
176
5
-6
-73
75
171
8
-36
-24
74
0
1
231
_2
11
3
40
169
-45
-13
51
40
0
-1
347
-6
17
38
-33
317
20
31
137
-6
1
6
191
-52
41
1
-60
248
-118
-19
84
23
-3
6
167
33
29
-9
-66
176
0
53
61
-40
0
12
18
24
18
-6
-12
0
5
-1
9
6
15,425
9,964
17,192
12,152
5,716
4,670
1,176
1,203
1,099
1,303
1,192
1,038
946
778
929
930
1,619
1,481
2,222
1,481
2
18 Foreign purchases
19 Foreign sales
5,461
5,039
1,046
-26
-204
153
168
-1
138
741
20 Net purchases, or sales ( — ) . . .
5,526
4,973
991
-17
-212
157
154
10
144
682
21 Foreign countries
1,576
129
213
-65
54
1,257
135
185
3,499
5
10
1,353
11
848
70
108
178
-12
132
3,465
44
- 1
-7
870
60
811
33
88
-142
118
22
-59
58
-19
-96
5
43
13
7
-164
-35
-12
84
43
0
0
-112
4
67
9
10
-174
-29
4
-72
-1
- 1
-2
139
7
52
3
-3
55
-2
22
-62
60
0
-2
144
15
88
2
19
3
29
17
-89
53
0
0
16
14
104
0
8
-102
15
-11
-63
52
0
2
169
12
224
17
15
-102
29
26
-41
-29
-6
-3
540
20
395
14
46
59
46
-8
135
-18
-13
-65
66
55
-10
9
-4
14
-11
-6
59
44
507
463
31
692
661
-64
382
446
22
23
24
25
26
27
28
29
30
31
32
33
34
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
Nonmonetary
international and
regional organizations....
117
1
1
Foreign securities
35 Stocks, net purchases, or sales ( - )
36 Foreign purchases
37 Foreign sales
-2,141
7,888
10,029
5
9,199
9,195
170
2,103
1,933
-30
588
617
-70
625
695
82
699
617
159
521
362
38 Bonds, net purchases, or sales ( - )
39 Foreign purchases
40
Foreign sales
-1,001
17,084
18,086
-5,177
17,796
22,973
-698
7,538
8,236
-109
1,553
1,661
-1,945
2,297
4.242
-772
1,980
2,751
-22
1.222
1,243
-99'
1,514
1,612'
-520
2,549
3,069
-57
2,254
2,312
41 Net purchases, or sales ( - ) , of stocks and bonds .
-3,143
-5,172
-528
-139
-2,015
-689
138
-55'
-489
-122
42
43
44
45
46
47
48
49
-4,019
-1,108
-1,948
81
-1,147
24
79
-4,416
-642
-3,698
170
-287
-53
94
-567
69
-676
432
-366
-37
10
-311
-45
-205
50
-113
1
0
-1,426
-453
-878
-6
-148
1
57
31
136
-166
-2
49
6
8
109
143
-80
67
-2
-15
-4
-115'
-56'
-102
67
-20
-1
-3
-505
109
-608
96
-115
-5
17
-56
-127
115
202
-229
-17
0
876
-756
39
173
-588
-720
28
16
-66
Foreign countries
Europe
Canada
Latin America and Caribbean
Africa
Other countries
Nonmonetary international and
regional organizations
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
60
2. Includes state and local government securities, and securities of U.S. government agencies and corporations. Also includes issues of new debt securities sold
abroad by U.S. corporations organized to finance direct investments abroad.
Investment Transactions and Discount Rates
3.25
MARKETABLE U.S. TREASURY BONDS A N D NOTES
A67
Foreign Holdings and Transactions
Millions of dollars
1982
1980
Country or area
1981
1982
1981
Jan.Apr.
Oct.
Nov.
Dec.
Holdings (end of period)
Jan.
Feb.
Mar.
Apr.?
1
1 Estimated total2
57,549
70,201
68,482
70,370
70,201
71,487
73,800
75,793'
2 Foreign countries2
52,961
64,530
64,061
65,893
64,530
65,850
68,273r
70,251r
71,926
3 Europe 2
4 Belgium-Luxembourg
5 Germany2
6 Netherlands
7 Sweden
8 Switzerland2
9 United Kingdom
10 Other Western Europe
11 Eastern Europe
12 Canada
24,468
77
12,327
1,884
595
1,485
7,323
0
449
23,976
543
11,861
1,955
643
846
6,709
1,419
0
514
24.531
384
13,029
1,784
661
861
6,446
1,367
0
540
24,952
329
13,226
1,889
645
833
6,693
1.337
0
501
23,976
543
11,861
1,955
643
846
6,709
1.419
0
514
24.373
614
11,898
1,998
644
904
6,800
1,514
0
533
25.332
363
12,845
2,038
635
984
6,931
1,535
0
26,085rr
539
13,055
2,052
697
1,025'
7,037
1,680
0
458 r
26,398
709
13,231
2,139
667
1,157
6,737
1.757
0
473
13
14
15
16
17
18
19
20
999
292
285
421
26,112
9,479
919
14
736
286
319
131
38,671
10,780
631
2
788
289
317
182
37,052
10,094
1,141
8
761
306
289
165
38,638
10,732
1,037
3
736
286
319
131
38,671
10,780
631
2
721
286
321
113
39,700
10,844
519
3
728
286
337
104
41,310
11,022
400
5
760
286
370
103
42,531
11,203
401
17
886
306
383
196
43,750
11,381
403
17
4,588
5,671
4,421
4,477
5,671
5,637
5,521r
5,542
5,338
4,548
36
5.637
1
4,419
1
4,462
1
5,637
1
5,603
1
5.493
-4
5.529
-4
5,278
-4
111
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
All other
21 Nonmonetary international and regional organizations
22
23
International
Latin American regional
499 r
77,264
Transactions (net purchases, or sales ( - ) during period)
2
24 Total
6,066
2
12,652
7,063
1,480
1,888
-169
1,286
2,313r
1,994r
1,470
r
1,676
827
849
-205
25 Foreign countries
26 Official institutions
27 Other foreign2
28 Nonmonetary international and regional organizations ..
6,906
3,865
3,040
-843
11,568
11,694
-127
1,085
7,397
5,321
2,074
-332
1,698
1,632
65
-217
1,832
1.997
-165
57
-1,363
-787
-576
1,194
1,320
841
478
-33
2,423
2,343
80'
-110
1,978'
1,311
667
16
MEMO: Oil-exporting countries
29 Middle East 3
30 Africa4
7,672
327
11,156
-289
3,768
-229
1,442
0
1,250
- 102
17
-407
1,019
-112
1,373
-119
470
0
1. Estimated official and private holdings of marketable U.S. Treasury securities
with an original maturity of more than 1 year. Data are based on a benchmark
survey of holdings as of Jan. 31, 1971, and monthly transactions reports. Excludes
nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign
countries.
3.26
906
2
2. Beginning December 1978, includes U.S. Treasury notes publicly issued to
private foreign residents denominated in foreign currencies.
3. Comprises Bahrain. Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Rate on Apr. 30, 1982
Rate on Apr. 30, 1982
Country
Country
Percent
Argentina
Austria ..
Belgium..
Brazil
Canada ..
Denmark.
147.95
6.75
14.0
49.0
15.43
11.00
Month
effective
May
Mar.
Apr.
Mar.
May
Oct.
1982
1980
1982
1981
1982
1980
Percent
France1
Germany, Fed. Rep. of
Italy
Japan
Netherlands
Norway
1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either
Rate on Apr. 30, 1982
Country
16.0
7.5
19.0
5.5
8.0
9.0
Month
effective
Apr.
May
Mar.
Dec.
Mar.
Nov.
1982
1980
1981
1981
1982
1979
Sweden
Switzerland
United KingdomVenezuela
Percent
Month
effective
10.0
5.5
Mar. 1982
Mar. 1982
Aug. 1981
discounts or makes advances against eligible commercial paper and/or
commercial
banks
or
brokers.
For
countries
with
government
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.
A68
International Statistics • June 1982
3.27
FOREIGN SHORT-TERM INTEREST RATES
Percent per annum, averages of daily figures
1981
Country, or type
1979
1980
Nov.
1
2
3
4
5
6
7
8
9
10
1982
1981
Dec.
Jan.
Feb.
Mar.
Apr.
May
Eurodollars
United Kingdom
Canada
Germanv
Switzerland
11.96
13.60
11.91
6.64
2.04
14.00
16.59
13.12
9.45
5.79
16.79
13.86
18.84
12.05
9.15
13.33
15.03
16.53
11.05
9.88
13.24
15.31
15.97
10.72
9.76
14.29
15.14
15.01
10.43
8.53
15.75
14.47
15.25
10.22
8.29
14.90
13.53
15.67
9.84
6.37
15.20
13.69
15.74
9.30
4.96
14.53
13.31
15.46
9.12
3.80
Netherlands
France
Italy
Belgium
Japan
9.33
9.44
11.85
10.48
6.10
10.60
12.18
17.50
14.06
11.45
11.52
15.28
19.98
15.28
7.58
11.70
15.35
21.12
15.28
7.15
11.03
15.30
21.24
15.48
6.75
10.49
15.07
21.38
15.09
6.41
10.06
14.58
21.34
14.89
6.38
8.90
15.21
20.63
14.02
6.43
8.20
16.36
20.62
14.95
6.57
8.62
16.17
20.59
15.00
6.80
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.
3.28
FOREIGN E X C H A N G E RATES
Currency units per dollar
1981
Country/currency
1979
1980
Dec.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Argentina/peso
Australia/dollar1
Austria/schilling
Belgium/franc
Brazil/cruzeiro
Canada/dollar
Chile/peso
China, P.R./yuan
Colombia/peso
Denmark/krone
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Indonesia/rupiah
Iran/rial
Ireland/pound1
Israel/shekel
Italy/lira
Japan/yen
Malaysia/ringgit
Mexico/peso
Netherlands/guilder
New Zealand/dollar1
Norway/krone
Peru/sol
Philippines/peso
Portugal/escudo
Singapore/dollar
South Africa/rand/1
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Thailand/baht
United Kingdom/pound1
Venezuela/bolivar
1982
1981
Jan.
Feb.
Mar.
Apr.
May
n.a.
111.77
13.387
29.342
n.a.
1.1603
n.a.
n.a.
n.a.
5.2622
3.8886
4.2566
1.8342
n.a.
n.a.
8.1555
n.a.
n.a.
204.65
n.a.
831.10
219.02
2.1721
22.816
2.0072
102.23
5.0650
n.a.
n.a.
48.953
n.a.
118.72
n.a.
67.158
15.570
4.2892
1.6643
n.a.
212.24
n.a.
n.a.
111.57
12.945
29.237
n.a.
1.1693
n.a.
n.a.
n.a.
5.6345
3.7206
4.2250
1.8175
n.a.
n.a.
7.8866
n.a.
n.a.
213.53
n.a.
856.20
226.63
2.1767
22.968
1.9875
98.65
4.9381
n.a.
n.a.
50.082
n.a.
122.72
n.a.
71.758
16.167
4.2309
1.6772
n.a.
227.74
n.a.
n.a.
114.57
15.948
37.194
92.374
1.1990
n.a.
1.7031
n.a.
7.1350
4.3128
5.4396
2.2631
n.a.
5.5678
8.6807
n.a.
79.324
161.32
n.a.
1138.60
220.63
2.3048
24.547
2.4998
86.848
5.7430
n.a.
7.8113
61.739
2.1053
114.77
n.a.
92.396
18.967
5.0659
1.9674
21.731
202.43
4.2781
7417.10
113.39
15.852
38.296
121.98
1.1851
39.100
1.7405
57.129
7.3210
4.3666
5.7141
2.2579
57.231
5.6329
9.1304
632.36
79.000
157.30
15.363
1206.40
218.95
2.2477
26.071
2.4734
82.784
5.7801
487.73
8.1446
65.348
2.0530
103.10
694.68
96.97
20.259
5.5411
1.7859
23.050
190.33
4.2958
9910.00
111.41
16.066
39.027
130.14
1.1926
39.100
1.7713
59.409
7.4977
4.4033
5.8298
2.2938
58.811
5.7959
9.1525
645.7
n.a.
153.97
16.163
1228.20
224.80
2.2575
26.469
2.5145
81.399
5.8623
515.21
8.2132
66.492
2.0607
103.46
705.17
98.357
20.228
5.6206
1.8152
23.050
188.60
4.2960
10256.00
108.50
16.587
41.144
137.97
1.2140
39.100
1.8200
60.129
7.7950
4.5058
6.0176
2.3660
60.973
5.8857
9.2144
645.89
n.a.
148.86
17.488
1263.20
235.31
2.3662
31.736
2.5947
79.325
5.9697
534.47
8.2530
69.067
2.1095
101.95
710.05
100.70
20.611
5.7579
1.8909
23.050
184.70
4.2960
10795.65
106.03
16.711
44.379
144.07
1.2205
39.100
1.8429
60.956
8.0396
4.5663
6.1428
2.3800
61.769
5.8298
9.2935
649.00
n.a.
147.25
18.766
1293.29
241.23
2.3265
45.366
2.6186
77.698
6.0255
561.08
8.3291
70.488
2.1213
97.930
714.67
104.53
20.700
5.8361
1.8886
23.050
180.53
4.3012
11761.36
105.15
16.853
45.292
151.03
1.2252
39.407
1.8565
61.057
8.1591
4.6097
6.2457
2.3970
63.541
5.8270
9.3923
651.14
144.22
20.014
1321.60
244.11
2.3395
46.152
2.6594
76.562
6.0820
591.29
8.3565
72.493
2.1329
94.880
721.03
106.15
20.575
5.9144
1.9624
23.025
177.20
4.3023
13942.50
105.94
16.274
43.666
159.08
1.2336
39.537
1.8123
62.365
7.8444
4.5045
6.0237
2.3127
62.892
5.7549
9.2965
653.67
n.a.
149.60
21.184
1283.37
236.96
2.2907
46.903
2.5709
77.025
5.9675
622.87
8.4016
70.610
2.0886
94.010
724.35
102.987
20.365
5.7888
1.9500
23.000
181.03
4.2991
88.09
87.39
102.94
105.21
106.96
110.36
112.45
114.07
111.03
MEMO:
United States/dollar2
1. Value in U.S. cents.
2. Index of weighted-average exchange value of U.S. dollar against currencies of other G-10 countries plus Switzerland. March 1973 = 100.
Weights are 1972-76 global trade of each of the 10 countries. Series
revised as of August 1978. For description and back data, see "Index of
the Weighted-Average Exchange Value of the U.S. Dollar: Revision" on page
700 of the August 1978 BULLETIN.
NOTE. Averages of certified noon buying rates in New York for cable transfers.
A69
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE TO TABULAR
Symbols and
c
e
p
r
*
PRESENTATION
Abbreviations
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when more
than half of figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000 when
the smallest unit given is millions)
General
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed
issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
STATISTICAL
obligations of the Treasury. "State and local government"
also includes municipalities, special districts, and other political subdivisions.
In some of the tables details do not add to totals because of
rounding.
RELEASES
List Published Semiannually,
with Latest Bulletin
Reference
Anticipated schedule of release dates for periodic releases
SPECIAL
Issue
Page
June 1981
A78
TABLES
Published Irregularly,
with Latest Bulletin
Commercial bank assets and
Assets and liabilities of U.S.
Commercial bank assets and
Commercial bank assets and
Commercial bank assets and
Commercial bank assets and
Reference
liabilities, December 31, 1980
branches and agencies of foreign banks, December 31, 1981
liabilities, March 31, 1981
liabilities, June 30, 1981
liabilities, September 30, 1981
liabilities, December 31, 1981
April
April
July
October
January
April
1981
1982
1981
1981
1982
1982
A72
A78
A72
A74
A70
A72
A70
Federal Reserve Board of Governors
P A U L A . VOLCKER,
PRESTON M A R T I N ,
OFFICE OF BOARD
Chairman
Vice Chairman
MEMBERS
JOSEPH R. COYNE, Assistant
DONALD J. WINN, Assistant
HENRY C . WALLICH
J. CHARLES PARTEE
OFFICE OF STAFF DIRECTOR
MONETARY AND FINANCIAL
to the Board
to the Board
FRANK O'BRIEN, JR., Deputy Assistant to the Board
ANTHONY F. COLE, Special Assistant to the Board
WILLIAM R. MALONI, Special Assistant to the Board
NAOMI P. SALUS, Special Assistant to the Board
JAMES L. STULL, Manager, Operations Review
Program
STEPHEN H . AXILROD, Staff
OF RESEARCH
AND
to the Board
STATISTICS
DIVISION
JAMES L . K I C H L I N E ,
MICHAEL BRADFIELD, General
Counsel
ROBERT E. MANNION, Deputy General Counsel
J. VIRGIL MATTINGLY, JR., Associate General Counsel
GILBERT T. SCHWARTZ, Associate General Counsel
RICHARD M. ASHTON, Assistant General Counsel
NANCY P. JACKLIN, Assistant General Counsel
MARYELLEN A. BROWN, Assistant to the General Counsel
OFFICE OF THE
SECRETARY
WILLIAM W . WILES,
Secretary
DIVISION OF
CONSUMER
AND COMMUNITY
AFFAIRS
JANET O . H A R T ,
SUPERVISION
JOHN E . R Y A N ,
REGULATION
Director
FREDERICK R. DAHL, Associate
Director
DON E. KLINE, Associate
Director
WILLIAM TAYLOR, Associate
JACK M. EGERTSON, Assistant
ROBERT A . JACOBSEN, Assistant
ROBERT S. PLOTKIN, Assistant
SYDNEY M . SUSSAN, Assistant
THOMAS A . SIDMAN, Assistant
SAMUEL H . TALLEY, Assistant
LAURA M. HOMER, Securities
Director
Director
Director
Director
Director
Director
Director
Director
Director
Credit
Officer
Director
DAVID E. LINDSEY, Assistant
Director
LAWRENCE SLIFMAN, Assistant
Director
FREDERICK M. STRUBLE, Assistant
Director
STEPHEN P. TAYLOR, Assistant
Director
PETER A. TINSLEY, Assistant
Director
LEVON H. GARABEDIAN, Assistant Director
OF INTERNATIONAL
(Administration)
FINANCE
Director
ROBERT F. GEMMILL, Associate
CHARLES J. SIEGMAN, Associate
Director
Director
LARRY J. PROMISEL, Senior Deputy Associate
Director
DALE W. HENDERSON, Deputy Associate
Director
SAMUEL PIZER, Staff
Adviser
RALPH W. SMITH, JR., Assistant
BANKING
AND
MARTHA BETHEA, Assistant
JOE M. CLEAVER, Assistant
EDWIN M . TRUMAN,
Director
JERAULD C. KLUCKMAN, Associate
Director
GLENN E. LONEY, Assistant
Director
OF
JARED J. ENZLER, Senior Deputy Associate
Director
DONALD L. KOHN, Senior Deputy Associate
Director
ELEANOR J. STOCKWELL, Senior Deputy Associate
Director
J. CORTLAND G. PERET, Deputy Associate
Director
HELMUT F. WENDEL, Deputy Associate
Director
DIVISION
Director
GRIFFITH L. GARWOOD, Deputy
Director
JOSEPH S. ZEISEL, Deputy
Director
MICHAEL J. PRELL, Associate
Director
ROBERT M. FISHER, Assistant
BARBARA R. LOWREY, Associate
Secretary
JAMES MCAFEE, Associate
Secretary
*DOLORES S. SMITH, Assistant
Secretary
DIVISION
Director
EDWARD C. ETTIN, Deputy Staff Director
MURRAY ALTMANN, Assistant to the Board
STANLEY J. SIGEL, Assistant to the Board
NORMAND R.V. BERNARD, Special Assistant
DIVISION
LEGAL
FOR
POLICY
Director
A71
and Official Staff
N A N C Y H . TEETERS
L Y L E E . GRAMLEY
EMMETT J. RICE
OFFICE OF
OFFICE OF STAFF DIRECTOR
STAFF DIRECTOR
FOR MANAGEMENT
JOHN M . DENKLER, Staff Director
EDWARD T . MULRENIN, Assistant
JOSEPH W . DANIELS, S R . , Director
FEDERAL
THEODORE E . ALLISON, Staff
DIVISION
BANK
OF DATA
PROCESSING
CHARLES L . HAMPTON,
Director
BRUCE M . BEARDSLEY, Deputy
Director
ULYESS D . BLACK, Associate
Director
GLENN L . CUMMINS, Assistant
Director
NEAL H . HILLERMAN, Assistant
Director
C . WILLIAM SCHLEICHER, JR., Assistant
ROBERT J. ZEMEL, Assistant
Director
DIVISION
OF
Director
PERSONNEL
DAVID L . SHANNON,
Director
JOHN R . WEIS, Assistant
Director
CHARLES W . WOOD, Assistant
Director
OFFICE OF THE
CONTROLLER
JOHN KAKALEC,
Controller
GEORGE E . LIVINGSTON, Assistant
DIVISION
OF SUPPORT
Controller
SERVICES
DONALD E . ANDERSON,
Director
ROBERT E . FRAZIER, Associate
Director
WALTER W . KREIMANN, Associate
Director
*On loan from the Division of Consumer and Community Affairs.
t O n loan from the Federal Reserve Bank of N e w York.
BANK
FOR
ACTIVITIES
Director
Staff
Director
of Equal
Employment
Opportunity
DIVISION
RESERVE
OF FEDERAL
RESERVE
OPERATIONS
CLYDE H . FARNSWORTH, JR.,
Director
LORIN S . MEEDER, Associate
Director
WALTER ALTHAUSEN, Assistant
Director
CHARLES W . BENNETT, Assistant
Director
RICHARD B . GREEN, Assistant
Director
EARL G . HAMILTON, Assistant
Director
ELLIOTT C . M C E N T E E , Assistant
Director
DAVID L . ROBINSON, Assistant
Director
I H O W A R D F . CRUMB, Acting
Adviser
72
Federal Reserve Bulletin • June 1982
FOMC and Advisory Councils
FEDERAL
OPEN MARKET
COMMITTEE
PAUL A . VOLCKER, Chairman
A N T H O N Y M . SOLOMON, Vice
JOHN J. BALLES
L Y L E E . GRAMLEY
J. CHARLES PARTEE
ROBERT P . BLACK
WILLIAM F . FORD
K A R E N N . HORN
PRESTON MARTIN
EMMETT J. RICE
N A N C Y H . TEETERS
HENRY C . WALLICH
STEPHEN H . AXILROD, Staff
Director
MURRAY A L T M A N N ,
Secretary
NORMAND R . V . BERNARD, Assistant
NANCY M. STEELE, Deputy Assistant
MICHAEL BRADFIELD, General
Secretary
Secretary
Counsel
JAMES H. OLTMAN, Deputy General Counsel
ROBERT E. MANNION, Assistant General Counsel
JAMES L . KICHLINE,
Economist
JOHN M . DAVIS, Associate
Economist
RICHARD G . DAVIS, Associate
E D W A R D C . E T T I N , Associate
MICHAEL W . K E R A N , Associate
D O N A L D L . KOCH, Associate
JAMES PARTHEMOS, Associate
MICHAEL J. PRELL, Associate
CHARLES J. SIEGMAN, Associate
E D W I N M . T R U M A N , Associate
JOSEPH S . ZEISEL, Associate
Chairman
Economist
Economist
Economist
Economist
Economist
Economist
Economist
Economist
Economist
PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account
SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account
FEDERAL ADVISORY
COUNCIL
DONALD C. PLATTEN, Second District, President
ROBERT M. SURDAM, Seventh District, Vice President
R O N A L D TERRY, E i g h t h D i s t r i c t
CLARENCE G . FRAME, N i n t h D i s t r i c t
GORDON E . WELLS, T e n t h D i s t r i c t
WILLIAM S . EDGERLY, F i r s t D i s t r i c t
JOHN H . WALTHER, T h i r d D i s t r i c t
JOHN G . M C C O Y , F o u r t h D i s t r i c t
VINCENT C . BURKE, J R . , F i f t h D i s t r i c t
ROBERT STRICKLAND, S i x t h D i s t r i c t
T. C. FROST, JR., Eleventh District
JOSEPH J. PINOLA, T w e l f t h D i s t r i c t
HERBERT V . PROCHNOW,
WILLIAM J. KORSVIK, Associate
CONSUMER
ADVISORY
Secretary
Secretary
COUNCIL
CHARLOTTE H. SCOTT, Charlottesville, Virginia, Chairman
MARGARET REILLY-PETRONE, Upper Montclair, New Jersey, Vice Chairman
ARTHUR F. BOUTON, Little Rock, Arkansas
SHIRLEY T . HOSOI, LOS A n g e l e s , C a l i f o r n i a
JULIA H . B O Y D , A l e x a n d r i a , V i r g i n i a
ELLEN BROADMAN, W a s h i n g t o n , D . C .
GEORGE S . IRVIN, D e n v e r , C o l o r a d o
GERALD R. CHRISTENSEN, Salt Lake City, Utah
JOSEPH N. CUGINI, Westerly, Rhode Island
RICHARD S . D ' A G O S T I N O , P h i l a d e l p h i a , P e n n s y l v a n i a
SUSAN PIERSON D E W I T T , S p r i n g f i e l d , I l l i n o i s
JOANNE S . FAULKNER, N e w H a v e n , C o n n e c t i c u t
MEREDITH FERNSTROM, N e w Y o r k , N e w Y o r k
ALLEN J. FISHBEIN, W a s h i n g t o n , D . C .
E. C. A. FORSBERG, SR., Atlanta, Georgia
LUTHER R . GATLING, N e w Y o r k , N e w Y o r k
VERNARD W . H E N L E Y , R i c h m o n d , V i r g i n i a
JUAN J. HINOJOSA, M c A l l e n , T e x a s
HARRY N . JACKSON, M i n n e a p o l i s , M i n n e s o t a
F . THOMAS JUSTER, A n n A r b o r , M i c h i g a n
ROBERT J. MCEWEN, S. J., Chestnut Hill, Massachusetts
S T A N L . MULARZ, C h i c a g o , I l l i n o i s
WILLIAM J. O ' C O N N O R , B u f f a l o , N e w Y o r k
WILLARD P . OGBURN, B o s t o n , M a s s a c h u s e t t s
JANET J. RATHE, P o r t l a n d , O r e g o n
R E N E REIXACH, R o c h e s t e r , N e w
York
PETER D . SCHELLIE, W a s h i n g t o n , D . C .
N A N C Y Z . SPILLMAN, L o s A n g e l e s , C a l i f o r n i a
CLINTON W A R N E , C l e v e l a n d , O h i o
FREDERICK T . WEIMER, C h i c a g o , I l l i n o i s
A73
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
Robert P. Henderson
Thomas I. Atkins
Frank E. Morris
James A. Mcintosh
NEW YORK*
10045
Robert H. Knight, Esq.
Boris Yavitz
Frederick D. Berkeley, III
Anthony M. Solomon
Thomas M. Timlen
Buffalo
14240
John T. Keane
PHILADELPHIA
19105
Jean A. Crockett
Robert M. Landis, Esq.
Edward G. Boehne
Richard L. Smoot
CLEVELAND*
44101
J. L. Jackson
William H. Knoell
Clifford R. Meyer
Milton G. Hulme, Jr.
Karen N. Horn
Walter H. MacDonald
Steven Muller
Paul E. Reichardt
Edward H. Covell
Naomi G. Albanese
Robert P. Black
Jimmie R. Monhollon
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
21203
Charlotte
28230
Culpeper
Communications
and Records Center
22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30301
35202
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77001
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84130
98124
Vice President
in charge of branch
Robert E. Showalter
Harold J. Swart
Robert D. McTeer, Jr.
Stuart P. Fishburne
Albert D. Tinkelenberg
William A. Fickling, Jr.
John H. Weitnauer, Jr.
William H. Martin, III
Copeland D. Newbern
Eugene E. Cohen
Cecelia Adkins
Leslie B. Lampton
William F. Ford
Robert P. Forrestal
John Sagan
Stanton R. Cook
Russell G. Mawby
Silas Keehn
Daniel M. Doyle
Armand C. Stalnaker
W. L. Hadley Griffin
E. Ray Kemp, Jr.
James F. Thompson
Donald B. Weis
Lawrence K. Roos
Donald W. Moriarty, Jr.
William G. Phillips
John B. Davis, Jr.
Ernest B. Corrick
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
A. J. Losee
Jerome L. Howard
Lawrence L. Crum
Robert H. Boykin
William H. Wallace
Caroline L. Ahmanson
Alan C. Furth
Bruce M. Schwaegler
John C. Hampton
Wendell J. Ashton
John W. Ellis
John J. Balles
John B. Williams
Hiram J. Honea
Charles D. East
Patrick K. Barron
Jeffrey J. Wells
James D. Hawkins
William C. Conrad
John F. Breen
Donald L. Henry
Randall C. Sumner
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, N e w Jersey 07016;
Jericho, New York 11753; Utica at Oriskany, N e w York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
for Virginia
FRASER
25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
Digitized
A74
Federal Reserve Board Publications
Copies are available from PUBLICATIONS SERVICES,
Room MP-510, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551. When a charge is indicated, remittance should accompany request and be made
payable to the order of the Board of Governors of the Federal
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THE
OPEN MARKET POLICIES A N D OPERATING
FEDERAL RESERVE SYSTEM—PURPOSES A N D F U N C TIONS. 1 9 7 4 . 125 p p .
A N N U A L REPORT.
FEDERAL RESERVE B U L L E T I N . M o n t h l y . $ 2 0 . 0 0 p e r y e a r o r
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BANKING AND MONETARY STATISTICS. 1 9 1 4 - 1 9 4 1 .
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BANKING
AND
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1976.
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A N N U A L STATISTICAL DIGEST
1971-75. 1976. 339 pp. $5.00 per copy.
1972-76. 1977. 377 pp. $10.00 per copy.
1973-77. 1978. 361 pp. $12.00 per copy.
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1970-79. 1981. 587 pp. $20.00 per copy.
1980.
1981. 241 pp. $10.00 per copy.
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SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE-
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THE FEDERAL RESERVE ACT, as amended through December
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REGULATIONS OF THE BOARD OF GOVERNORS OF THE F E D ERAL RESERVE SYSTEM.
B A N K CREDIT-CARD A N D CHECK-CREDIT PLANS. 1 9 6 8 . 102
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A N N U A L PERCENTAGE RATE TABLES ( T r u t h in
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FEDERAL RESERVE MEASURES OF CAPACITY A N D CAPACITY
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THE BANK
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A
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A75
Monetary Policy and Reserve Requirements Handbook.
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subjects
that are of general interest. Requests to obtain single copies
of the full text or to be added to the mailing list for the series
may be sent to Publications
Services.
PERFORMANCE A N D CHARACTERISTICS OF E D G E CORPORA-
TIONS, by James V. Houpt. Feb. 1981. 56 pp.
BANKING STRUCTURE A N D PERFORMANCE AT THE STATE
LEVEL DURING THE 1970S, by Stephen A. Rhoades. Mar.
1981. 26 pp.
FEDERAL RESERVE DECISIONS ON B A N K MERGERS AND A C -
CONSUMER EDUCATION
PAMPHLETS
Short pamphlets
suitable for classroom use.
copies available without charge.
QUISITIONS DURING THE 1970S, by Stephen A. Rhoades.
Aug. 1981. 16 pp.
Multiple
BELOW THE BOTTOM L I N E : THE U S E OF CONTINGENCIES
AND COMMITMENTS BY COMMERCIAL BANKS, b y B e n j a -
Alice in Debitland
Consumer Handbook to Credit Protection Laws
Dealing with Inflation: Obstacles and Opportunities
The Equal Credit Opportunity Act and . . . Age
The Equal Credit Opportunity Act and . . . Credit Rights in
Housing
The Equal Credit Opportunity Act and . . . Doctors, Lawyers, Small Retailers, and Others Who May Provide
Incidental Credit
The Equal Credit Opportunity Act and . . . Women
Fair Credit Billing
Federal Reserve Glossary
Guide to Federal Reserve Regulations
How to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You Use A Credit Card
Series on the Structure of the Federal Reserve
System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Monetary Control Act of 1980
Truth in Leasing
U.S. Currency
What Truth in Lending Means to You
MULTIBANK HOLDING COMPANIES: RECENT EVIDENCE ON
COMPETITION A N D PERFORMANCE IN BANKING MAR-
min Wolkowitz and others. Jan. 1982. 186 pp.
KETS, by Timothy J. Curry and John T. Rose. Jan. 1982.
9 pp.
COSTS, SCALE, ECONOMIES, COMPETITION, A N D PRODUCT
MIX IN THE U . S . PAYMENTS MECHANISM, b y D a v i d B .
Humphrey. Apr. 1982. 18 pp.
DIVISIA
MONETARY
AGGREGATES:
COMPILATION,
DATA,
AND HISTORICAL BEHAVIOR, by William A. Barnett and
Paul A. Spindt. May 1982. 82 pp.
THE COMMUNITY REINVESTMENT A C T A N D CREDIT ALLO-
CATION, by Glen Canner. June 1982. 8 pp.
REPRINTS
Most of the articles reprinted
do not exceed 12
pages.
Revision of Bank Credit Series. 12/71.
Rates on Consumer Installment Loans. 9/73.
Industrial Electric Power Use. 1/76.
Revised Series for Member Bank Deposits and Aggregate
Reserves. 4/76.
Federal Reserve Operations in Payment Mechanisms: A
Summary. 6/76.
Perspectives on Personal Saving. 8/80.
The Impact of Rising Oil Prices on the Major Foreign
Industrial Countries. 10/80.
Federal Reserve and the Payments System: Upgrading Electronic Capabilities for the 1980s. 2/81.
Survey of Finance Companies, 1980. 5/81.
Bank Lending in Developing Countries. 9/81.
U.S. International Transactions in 1981. 4/82.
A76
ANTICIPATED
SCHEDULE
BOARD OF GOVERNORS
Weekly
OF RELEASE
DATES
OF THE FEDERAL
FOR PERIODIC
RESERVE
RELEASES-
SYSTEM'
Releases
Approximate
release days
Date or period
to which data refer
Aggregate Reserves of Depository Institutions and Monetary Base.
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 and Foreign Related
Banking Institutions H.8 (510) [1.25]
Wednesday
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 Wednesday of
of previous week
Selected Borrowings in Immediately Available Funds of Large
Member Banks. H.5 (507) [1.13]
Thursday
Week ended Thursday of
previous week
Selected 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) [1.26, 1.27, 1.28, 1.29,
1.291]
Friday
Wednesday, 1 week earlier
Weekly Report of Assets and Liabilities of International Banking
Facilities. H. 14 (518)
Monday
Wednesday, 2 weeks earlier
Weekly Summary of Banking and Credit Measures. H.9 (511)
Friday
Week ended previous
Wednesday; and week
ended Wednesday 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
Commercial and Industrial Loans to U.S. Addressees Excluding
Bankers' Acceptances and Commercial Paper by Industry. G.27
(429) [1.30]
2nd Monday of
month
Last Wednesday of previous
month
Consumer Installment Credit. G.19 (421) [1.56, 1.57]
5th 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]
I st of month
Previous month
Monthly
Releases
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 BULLETIN table that reports these data is designated in brackets.
A77
Monthly Releases—Continued
Approximate
release days
Date or period
to which data refer
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 previous
month
Research Library—Recent Acquisitions. G.15 (417)
1st of month
Previous month
Selected Interest Rates. G. 13 (415) [1.35]
3rd working day of
month
Previous month
Summary of Equity Security Transactions. G.16 (418)
Last week of
month
Release date
Agricultural Finance Databook E. 15 (125)
End of March,
June, September
and December
January, April, July, and
October
Automobile Credit. E.4 (114)
4th of April, July,
October, and
January
Previous quarter
Finance Rates and Other Terms on Selected Types of Consumer
Installment Credit Extended by Major Finance Companies. E.10
(120)
25th of January,
April, July and
October
2nd month previous
Flow of Funds: Seasonally adjusted and unadjusted. Z.l (780) [1.58,
1.59]
15th of February,
May, August,
and November
Previous quarter
Geographical Distribution of Assets and Liabilities of Major Foreign
Branches of U.S. Banks. E . l l (121)
15th of March,
June,
September, and
December
Previous quarter
Finance Rates on Selected Consumer Installment Loans at Reporting
Commercial Banks. E.12 (122)
15th of March,
June,
September, and
December
February, May, August, and
November
Survey of Terms of Bank Lending. E.2 (111) [1.34]
15th of March,
June,
September, and
December
February, May, August, and
November
Domestic Offices, Commercial Bank Assets and Liabilities
Consolidated Report of Condition. E.3.4 (113) [1.26, 1.27, 1.28]
May and
November
End of previous December
and June
Check Collection Services—Federal Reserve System. E.9 (119)
February and July
Previous 6 months
Country Exposure Lending Survey. E. 16 (126)
May and
November
End of previous December
and June
February, June
and October
Release date
Quarterly
Semiannual
Releases
Releases
List of OTC Margin Stocks. E.7 (117)
A78
Approximate
release days
J
Date or period
to which data refer
J
Aggregate Summaries of Annual Surveys of Security Credit
Extension. C.2 (101)
February
End of previous June
Bank Holding Companies and Subsidiary Banks. C.6 (105)
Domestic
Foreign
March
Previous year
Insured Bank Income by Size of Bank. C.4 (103)
End of May
Previous year
A
I n i
Annual Releases
A79
Index to Statistical Tables
References are to pages A3 through A68 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers, 10, 25, 27
Agricultural loans, commercial banks, 18, 19, 20, 26
Assets and liabilities (See also Foreigners)
Banks, by classes, 17, 18-21
Domestic finance companies, 39
Federal Reserve Banks, 11
Foreign banks, U . S . branches and agencies, 22
Nonfinancial corporations, 38
Savings institutions, 29
Automobiles
Consumer installment credit, 42, 43
Production, 48, 49
B A N K E R S balances, 17, 18-20
(See also Foreigners)
Banks for Cooperatives, 35
Bonds (See also U . S . government securities)
N e w issues, 36
Yields, 3
Branch banks, 15, 21, 22, 56
Business activity, nonfinancial, 46
Business expenditures on new plant and equipment, 38
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 17
Federal Reserve Banks, 11
Central banks, 67
Certificates of deposit, 21, 27
Commercial and industrial loans
Commercial banks, 15, 17, 22, 26
Weekly reporting banks, 18-22, 23
Commercial banks
Assets and liabilities, 17, 18-21
Business loans, 26
Commercial and industrial loans, 15, 17, 22, 23, 26
Consumer loans held, by type, 42, 43
Loans sold outright, 21
Nondeposit funds, 16
Number by classes, 17
Real estate mortgages held, by holder and property, 41
Time and savings deposits, 3
Commercial paper, 3, 25, 27, 39
Condition statements (See Assets and liabilities)
Construction, 46, 50
Consumer installment credit, 42, 43
Consumer prices, 46, 51
Consumption expenditures, 52, 53
Corporations
Profits and their distribution, 37
Security issues, 36, 66
Cost of living (See Consumer prices)
Credit unions, 29, 42, 43
Currency and coin, 5, 17
Currency in circulation, 4, 13
Customer credit, stock market, 28
DEBITS to deposit accounts, 12
Debt (See specific types of debt or
securities)
Demand deposits
Adjusted, commercial banks, 12
Banks, by classes, 17, 18-21
Ownership by individuals, partnerships, and
corporations, 24
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, 29
Federal Reserve Banks, 4, 11
Subject to reserve requirements, 14
Turnover, 12
Discount rates at Reserve Banks and at foreign central
banks (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 37
EMPLOYMENT, 46, 47
Eurodollars, 27
FARM mortgage loans, 41
Federal agency obligations, 4, 10, 11, 12, 34
Federal credit agencies, 35
Federal finance
Debt subject to statutory limitation and types and
ownership of gross debt, 32
Receipts and outlays, 31
Treasury operating balance, 30
Federal Financing Bank, 30, 35
Federal funds, 3, 6, 18, 19, 20, 27, 30
Federal Home Loan Banks, 35
Federal Home Loan Mortgage Corporation, 35, 40, 41
Federal Housing Administration, 35, 40, 41
Federal Intermediate Credit Banks, 35
Federal Land Banks, 35, 41
Federal National Mortgage Association, 35, 40, 41
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U.S. government securities held, 4, 11, 12, 32, 33
Federal Reserve credit, 4, 5, 11, 12
Federal Reserve notes, 11
Federally sponsored credit agencies, 35
Finance companies
Assets and liabilities, 39
Business credit, 39
Loans, 18, 19, 20, 42, 43
Paper, 25, 27
Financial institutions
Loans to, 18, 19, 20
Selected assets and liabilities, 29
Float, 4
Flow of funds, 44, 45
Foreign banks, assets and liabilities of U . S . branches and
agencies, 22
Foreign currency operations, 11
Foreign deposits in U . S . banks, 4, 11, 18, 19, 20
Foreign exchange rates, 68
Foreign trade, 55
Foreigners
Claims on, 56, 58, 61, 62, 63, 65
Liabilities to, 21, 55, 56-60, 64, 66, 67
A80
GOLD
Certificates, 11
Stock, 4, 55
Government National Mortgage Association, 35, 40, 41
Gross national product, 52, 53
HOUSING, new and existing units, 50
INCOME, personal and national, 46, 52, 53
Industrial production, 46, 48
Installment loans, 42, 43
Insurance companies, 29, 32, 33, 41
Interbank loans and deposits, 17
Interest rates
Bonds, 3
Business loans of banks, 26
Federal Reserve Banks, 3, 7
Foreign central banks and foreign countries, 67
Money and capital markets, 3, 27
Mortgages, 3, 40
Prime rate, commercial banks, 26
Time and savings deposits, 9
International capital transactions of United States, 56-67
International organizations, 58, 59-62, 64-67
Inventories, 52
Investment companies, issues and assets, 37
Investments (See also specific types)
Banks, by classes, 17, 29
Commercial banks, 3, 15, 17, 18-20
Federal Reserve Banks, 11, 12
Savings institutions, 29, 41
LABOR force, 47
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 17, 18—21
Commercial banks, 3, 15, 17, 18-21, 22, 26
Federal Reserve Banks, 3 , 4 , 5 , 7 , 11, 12
Insured or guaranteed by United States, 40, 41
Savings institutions, 29, 41
MANUFACTURING
Capacity utilization, 46
Production, 46, 49
Margin requirements, 28
Member banks
Borrowing at Federal Reserve Banks, 5, 11
Federal funds and repurchase agreements, 6
Reserve requirements, 8
Reserves and related items, 14
Mining production, 49
Mobile home shipments, 50
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, 29, 32, 33, 41
NATIONAL defense outlays, 31
National income, 52
OPEN market transactions, 10
PERSONAL income, 53
Prices
Consumer and producer, 46, 51
Stock market, 28
Prime rate, commercial banks, 26
Production, 46, 48
Profits, corporate, 37
REAL estate loans
Banks, by classes, 18-20, 41
Rates, terms, yields, and activity, 3, 40
Savings institutions, 27
Type of holder and property mortgaged, 41
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, 55
Residential mortgage loans, 40
Retail credit and retail sales, 42, 43, 46
SAVING
Flow of funds, 44, 45
National income accounts, 53
Savings and loan assns., 3, 9, 29, 33, 41, 44
Savings deposits (See Time deposits)
Securities (See also U.S. government securities)
Federal and federally sponsored credit agencies, 35
Foreign transactions, 66
New issues, 36
Prices, 28
Special drawing rights, 4, 11, 54, 55
State and local governments
Deposits, 18, 19, 20
Holdings of U.S. government securities, 32, 33
New security issues, 36
Ownership of securities issued by, 18, 19, 20, 29
Yields of securities, 3
Stock market, 28
Stocks (See also Securities)
New issues, 36
Prices, 28
TAX receipts, federal, 31
Time deposits, 3, 9, 12, 14, 17, 18-21
Trade, foreign, 55
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 11, 30
Treasury operating balance, 30
UNEMPLOYMENT, 47
U.S. balance of payments, 54
U.S. government balances
Commercial bank holdings, 18, 19, 20
Member bank holdings, 14
Treasury deposits at Reserve Banks, 4, 11, 30
U.S. government securities
Bank holdings, 17, 18-20, 32, 33
Dealer transactions, positions, and financing, 34
Federal Reserve Bank holdings, 4, 11, 12, 32, 33
Foreign and international holdings and transactions, 11,
32, 67
Open market transactions, 10
Outstanding, by type and ownership, 32, 33
Ownership of securities issued by, 29
Rates, 3, 27
Utilities, production, 49
VETERANS Administration, 40, 41
WEEKLY reporting banks, 18-23
Wholesale (producer) prices, 46, 51
YIELDS (See Interest rates)
A81
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
LEGEND
~~~~ Boundaries of Federal Reserve Districts
Boundaries of Federal Reserve Branch
Territories
®
Federal Reserve Bank Cities
*
Federal Reserve Branch Cities
Federal Reserve Bank Facility
Q
Board of Governors of the Federal Reserve
System
@FedFRASER