Full text of Federal Reserve Bulletin : March 1984
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VOLUME 7 0 •
NUMBER 3 •
MARCH 1984
FEDERAL RESERVE
BULLETIN
Board of Governors of the Federal Reserve System
Washington, D.C.
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Stephen H. Axilrod • Michael Bradfield • S. David Frost
Griffith L. Garwood • James L. Kichline • Edwin M. Truman
Naomi P. Salus, Coordinator
The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Unit headed by Mendelle T. Berenson,
the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Helen L. Hulen.
Table of Contents
177 A MONETARY PERSPECTIVE ON
UNDERGROUND ECONOMIC
ACTIVITY
IN THE UNITED STATES
A growing underground economy, which is
thought to reflect efforts to evade taxes and
government regulation, has been widely reported in the United States and in other
countries in recent years.
191 TREASURY AND FEDERAL
RESERVE
FOREIGN EXCHANGE
OPERATIONS
From August 1983 through January 1984,
the dollar rose strongly on balance against
the European currencies, but was little
changed against the Japanese yen.
213
ANNOUNCEMENTS
Approval of revised fee schedule for automated clearinghouse services and a plan to
reduce and price A C H float.
Approval of the inclusion of certain depository institutions in the program to accelerate the collection of checks.
Revisions to data on the money stock and
reserves.
Issuance of policy statement on delayed
disbursement practices.
New members appointed to Thrift Institutions Advisory Council.
Consumer Advisory Council meeting.
204 INDUSTRIAL
PRODUCTION
Output rose about 1.2 percent in February.
206 STATEMENTS
TO CONGRESS
Paul A. Volcker, Chairman, Board of Governors of the Federal Reserve System, discusses the prospects and challenges for
monetary and fiscal policies for the remainder of 1984 and the years ahead, before the
Senate Committee on the Budget, February
29, 1984.
210 Henry C. Wallich, Member, Board of Governors, says that the large and growing
merchandise trade and current account deficits have raised strong concerns about the
state of U.S. tradable goods industries and
the prospect that funds borrowed from
abroad, along with the deficits, will soon
transform the United States into a net debtor economy, before the Subcommittee on
Commerce, Transportation and Tourism of
the House Committee on Energy and Commerce, March 6, 1984.
Proposal that the federal financial institution regulators issue a joint policy statement
on disclosure of practices regarding delayed
availability of funds; proposal of nine nonbanking activities as permissible for bank
holding companies; extension of the comment period on certain proposals related to
Regulations E and Z.
Changes in Board staff.
Admission of eight banks to membership in
the Federal Reserve System.
219 LEGAL
DEVELOPMENTS
Amendments to Regulation J; various bank
holding company and bank merger orders;
and pending cases.
253 DIRECTORS OF THE FEDERAL
BANKS AND BRANCHES
RESERVE
List of directors by Federal Reserve District.
Al FINANCIAL
AND BUSINESS
STATISTICS
A3 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A52 International Statistics
A80 FEDERAL OPEN MARKET
COMMITTEE
AND STAFF; ADVISORY
COUNCILS
A82 FEDERAL RESERVE
PUBLICATIONS
BOARD
A67 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND SPECIAL
TABLES
A85 INDEX TO STATISTICAL
A78 BOARD OF GOVERNORS
A88 MAP OF FEDERAL RESERVE
AND
STAFF
A87 FEDERAL RESERVE
AND OFFICES
TABLES
BANKS,
BRANCHES,
SYSTEM
A Monetary Perspective on Underground
Economic Activity in the United States
This article was prepared by Richard D. Porter
and Amanda S. Bayer of the Board's Division of
Research and Statistics. Footnotes appear at the
end of the article.
A growing underground economy in the United
States and in other countries has been widely
reported in recent years. The underground economy is thought to reflect efforts to evade taxes
and government regulation. Although no single
definition of such activity has been universally
accepted, the term generally refers to activity—
whether legal or illegal—generating income that
is either underreported or not reported at all.
Some investigators narrow the definition to cover only income produced in legal activity that is
not reported in the national income statistics.
Discussion of underground economic activity
intensified in the late 1970s with the publication
of two estimates, derived from aggregate monetary statistics, of the size of the underground
economy in the United States, one by Peter
Gutmann and the other by Edgar Feige. 1 Since
then, numerous estimates have been made of the
scope of this sector in the United States and in
other countries. The magnitude of some of these
estimates has occasioned congressional hearings
and various government studies. In 1979, the
Internal Revenue Service (IRS) estimated that
for 1976, individuals failed to report between $75
billion and $100 billion in income from legal
sources and another $25 billion to $35 billion
from three types of illegal activity—drugs, gambling, and prostitution. 2 In 1983, the estimates of
unreported income from legal sources for 1976
were raised to $131.5 billion while the estimates
of income from illegal sources dropped to $13.4
billion. 3
In this more recent study, the IRS estimated
that unreported income from legal sources grew
at a 13 percent annual rate over roughly the last
decade, from $93.9 billion in 1973 to $249.7
billion in 1981, while unreported income from the
three selected illegal activities grew at a 17.7
percent annual rate, from $9.3 billion to $34.2
billion. To estimate unreported income from
legal sources, the IRS drew mainly upon data on
individual taxpayers from its Taxpayer Compliance Measurement Program, which audits a sample of income tax returns, and upon data from its
Information Returns Program, which uses information from the payers of income. It developed
estimates of unreported income from legal
sources for individuals not filing returns by
cross-checking information from two nationwide
household surveys against its own records and
those of the Social Security Administration. Finally, the IRS estimated unreported income obtained in the selected illegal activities from survey data and arrest records.
This approach to estimating the size of the
underground economy has been subject to criticism. Some contend that the estimates derived
from administrative records and surveys are likely to understate actual unreported income. They
believe that estimates derived from monetary
statistics offer a better gauge of underground
activity and unreported income.
Aside from issues such as the underpayment of
tax liabilities, the existence of an underground
economy that may be growing relative to the
recorded economy creates problems for analyses
of public policy issues, including monetary policy. For example, policies developed from data
on the recorded economy may not necessarily
stabilize the total economy; or, movements in
monetary aggregates that reflect changes in the
underground economy may be interpreted as
signaling change in the recorded economy. Thus
policymakers need to assess the scope of the
underground economy to see whether these potential issues deserve more explicit consideration.
This article evaluates estimates of the size and
178
Federal Reserve Bulletin • March 1984
growth of underground activity based on several
monetary-statistic methods. The article also examines some of the reasons for the growth of per
capita currency holdings, particularly in larger
denominations—another phenomenon cited as
evidence of underground activity. 4
CURRENCY-RATIO
METHOD
The earliest monetary-statistic approach to estimating the size of the underground economy
relies on an analysis of movements in the ratio of
currency to checkable deposits—the currency
ratio. In this technique the underlying assumption is that the currency ratio in the aboveground
economy is constant over time. Because of this
assumption an increase in the amount of money
held as currency relative to that held in checkable deposits is interpreted as a relative rise in
underground economic activity. 5 To implement
the method, a benchmark period is selected that
is assumed to be free of underground activities.
" N o r m a l " or aboveground currency in any period is then defined to be in the same proportion to
actual checkable deposits in that period as total
currency was to checkable deposits in the benchmark period; accordingly, underground currency
is the difference between currency in circulation
and estimated aboveground currency. The estimated size of the underground economy is determined as the product of underground currency
and the income velocity (the ratio of income to
money) of aboveground M l , which is the sum of
aboveground currency and all checkable deposits. The last step in the calculation is based on the
assumption that income velocity is the same in
the underground and the aboveground sectors.
Currency-ratio estimates of underground gross
national product appear in table 1, column 1.
These figures suggest that the dollar level of
underground activity was little changed until the
middle 1970s, but almost tripled between 1975
and 1982, reaching $450 billion. As a percent of
recorded GNP, the size of the underground economy remained roughly constant until the 1970s.
1. Computed underground GNP, alternative methods and selected years, 1950-82'
Simple
currencyratio
method
Tanzi's model of the ratio
of currency to M2
Modified
currencyratio
method 2
(1)
Year
(2)
Transaction-ratio method
1964 base 2
(TW)
(T)
1939 base
(3)
(4)
(5)
(6)
Billions of dollars
1950
1955
1960
1965
1970
1975
15.9
14.7
17.3
31.6
62.4
150.8
21.5
15.6
17.1
38.6
88.5
246.0
14.5
12.8
20.7
26.3
45.6
77.0
9.4
10.9
13.2
17.1
25.3
46.6
27.6
1.7
-3.4
9.6
101.0
467.3
43.1
21.6
21.5
44.3
155.2
567.1
1978
1979
1980
1981
1982
266.1
317.8
372.8
427.1
449.7
460.2
558.5
666.9
767.6
810.5
114.2
130.7
159.9
n.a.
n.a.
80.9
88.6
116.9
n.a.
n.a.
551.1
628.4
1,095.6
1,765.6
n.a.
685.5
779.2
1,280.1
1,999.2
n.a.
Ratio to recorded GNP, percent
1950
1955
1960
1965
1970
1975
5.6
3.7
3.4
4.6
6.3
9.7
7.5
3.9
3.4
5.6
8.9
15.9
5.1
3.2
4.1
3.8
4.6
5.0
3.3
2.7
2.6
2.5
2.6
3.0
9.6
.4
-.7
1.4
10.2
30.2
15.1
5.4
4.2
6.4
15.6
36.6
1978
1979
1980
1981
1982
12.3
13.1
14.2
14.5
14.6
21.3
23.1
25.3
26.0
26.4
5.3
5.4
6.1
n.a.
n.a.
3.7
3.7
4.4
n.a.
n.a.
25.5
26.0
41.6
59.8
n.a.
31.7
32.2
48.6
67.7
n.a.
1. For a description of each method see the text.
2. It is assumed that underground GNP equals 5 percent of observed GNP in 1964.
n.a. Not available.
A Monetary Perspective
The proportion then increased sharply after
1975, to a sizable 14.6 percent in 1982.
MODIFIED CURRENCY-RATIO
METHOD
In 1980 Feige modified the currency-ratio method to make it conform more closely to what he
believed were the actual practices in the underground economy. 6 Whereas the simple currencyratio method postulates that currency is the
exclusive medium of exchange in the underground economy, Feige argues that some firms
and households use checks for such transactions
because they perceive that the ease of doing so
outweighs the costs of leaving a " p a p e r " audit
trail. He also contends that the underground
sector is service-oriented. Because fewer intermediate transactions occur in the production of
services, the amount of money balances per
dollar of output is smaller in this sector than in
the aboveground sector. Feige therefore assumes
that the currency ratio in the underground sector
equals two and that the income velocity of underground money is 10 percent higher than its
aboveground counterpart. 7
The modified currency-ratio estimates of underground G N P for selected years are shown in
table 1, column 2. For the mid-1960s, this method gives higher estimates of underground G N P
than does the simple currency-ratio method;
beginning in the 1970s the gap between the two
estimates widens greatly; and by 1982 the modified currency-ratio estimate of underground
GNP, at 26.4 percent of aboveground G N P , is
almost twice the estimate derived from the simpler approach.
A VARIANT OF THE CURRENCY-RATIO
METHOD: TANZI S METHOD
Another variant of the currency-ratio method has
been used by Vito Tanzi to estimate underground
activity. 8 Tanzi develops an explicit empirical
model of the ratio of currency to M2 that links
the size of the underground economy to the
incentive to evade taxes. Specifically, the demand for currency relative to M2 rises whenever
real per capita income or the rate of interest on
time deposits (which are included in M2) falls, or
on Underground Economic Activity
179
whenever the share of wages and salaries in
national income or the level of taxes rises. The
last variable reflects the presumed pecuniary
advantage of engaging in underground activity to
evade taxes, with a step-up in tax rates fostering
a relative rise in underground activity and inducing an increase in desired currency holdings
relative to other balances in M2.
To calculate the size of the underground economy, Tanzi estimates his model using annual
data for the years 1930 to 1980.9 Two simulations
are then conducted. In the first, all explanatory
variables take on their actual historical values to
produce a predicted currency series that is consistent with the actual tax rates in each period. In
the second simulation the tax rates are set equal
to zero rather than their historical values. The
difference between the two predicted amounts of
currency is Tanzi's estimate of the amount of
money in use in underground activities. As in the
simple currency-ratio method, the income velocities of underground and aboveground money
balances are assumed to be identical. Underground G N P is therefore the product of the
estimated stock of underground currency and the
income velocity of aboveground M l balances.
Table 1, columns 3 and 4, presents the size of
underground activity estimated with this model
using two tax measures: TW, a weighted average
tax rate on interest income, and T, the ratio of
total net tax payments to adjusted gross income.
Because both sets of estimates remain in a relatively narrow range around 5 percent of recorded
GNP, they provide a striking contrast to the
previous currency-ratio estimates. The figures
indicate only a slight upward trend in the relative
size of the underground economy; even for 1980
(the most recent year for which data are available), Tanzi estimates that underground G N P
equaled only 6.1 percent ( T W ) or 4.4 percent (7)
of aboveground G N P .
TRANSACTION-RATIO
METHOD
The ratio of total monetary transactions to gross
national product is the main ingredient of the
second basic approach to estimating underground activity, the transaction-ratio method developed by Feige. 1 0 Feige proposes that monetary transactions in underground activity will be
180
Federal Reserve Bulletin • March 1984
recorded in measures of total transactions but
excluded from recorded income. Thus changes in
the ratio of transactions to income will reflect
changes in the underground economy. The key
assumption underlying Feige's approach is that
total transactions, the sum of debits to checkable
deposits and the total dollar volume of currency
transactions, are proportional to total economic
activity ( " t o t a l " here meaning the sum of aboveground and underground activity). Because total
transactions include direct transfer payments,
which exhibit a changing pattern over time, and
purely financial transactions, which have increased dramatically in response to various financial innovations, Feige reformulates his original assumption in terms of the proportionality
between a net transaction measure and total
income. To derive a net transaction measure
appropriate for estimating underground activity,
he adjusts gross transactions by deducting several categories of major financial transactions and
direct transfers. 1 1
Given these adjustments, the calculation of
underground G N P proceeds in much the same
fashion as in the currency-ratio method: aboveground transactions are determined as the product of the ratio of transactions to G N P in the
benchmark period (which is assumed to be free
of underground activity) and recorded GNP. The
excess of actual transactions over aboveground
transactions defines the level of underground
transactions for any given year. Underground
income can then be inferred from the benchmark
ratio of transactions to income.
Table 1 lists alternative transaction-ratio estimates of underground G N P . The estimates in
column 5 are based on a 1939 benchmark period,
while those in column 6 assume that underground G N P was 5 percent of recorded G N P in a
1964 base period. The transaction-ratio estimates
of the size of underground activity are even
larger than those estimated from the currencyratio methods, rising from approximately 10 or
15 percent of reported G N P in 1970 to more than
60 percent by 1981.
A CRITIQUE OF THE
METHODS
MONETARY-STATISTIC
This section evaluates the assumptions, procedures, and estimated size of the underground
economy for each of the various monetarystatistic methods just described. The effort here
(and in the next section, which looks at currency
data) is to explain the observed behavior of
currency and transactions in traditional, aboveground terms, and thus avoid an underground
explanation except as a last resort. The aboveground explanations are firmly rooted in economic theory and established empirical work,
while, as will be shown, a number of the underground arguments bear only a tenuous relation to
accepted theory and empirical practice.
The starting point is the observation that all of
the methods except Tanzi's yield sharply increasing ratios of underground G N P to aboveground G N P since the late 1960s, particularly
after 1975. Such a pattern implies a sharp increase in the total G N P velocity of M l , the ratio
of the sum of aboveground and underground
G N P to the level of M l . Table 2 displays the
level and growth rates of total G N P velocity for
three monetary-statistic methods for some of the
years given in table l. 1 2 As the table indicates,
the velocities of total and recorded G N P grew on
average at an annual rate of between 3.1 and 3.5
percent from 1950 to 1970. From 1975 onward,
however, the estimated growth rates of total
G N P velocity accelerate relative to those for
recorded G N P velocity, which stays close to its
long-run historical trend rate of change. For
example, total G N P velocity for the transactionratio method using the 1939 base grows at an
annual rate of 7.6 percent from 1975 to 1981,
more than double the rate for the period 1950-70.
Those who believe that both money demand and
the aggregate economy are stable in the long run
will regard such a sharp change in the trend of
velocity as highly unlikely.
Another reason for skepticism stems from the
apparent contradiction between such large estimates of underground activity and the results of
a substantial body of empirical work. Although
the underground economy may influence the
relative amount of currency holdings, many other important factors are ignored by the advocates
of the currency-ratio approach. The behavior of
currency relative to checkable deposits or to M2
can, in fact, be explained with some accuracy by
standard empirical demand equations that do not
rely upon underground motives. Specifically, the
standard macroeconomic approach to analyzing
A Monetary Perspective
on Underground Economic Activity
181
2. Implied total income velocity of money by alternative methods of estimating underground activity, and
recorded velocity 1
Year or period
Simple
currencyratio
method
Transaction-ratio method
Modified
currencyratio
method
1939 base
1964 base
Velocity of Ml based
on recorded G N P
Implied velocity
1960
1965
1970
1975
3.705
4.378
4.9%
5.967
3.704
4.420
5.120
6.301
3.559
4.245
5.180
7.077
3.735
4.455
5.436
7.428
3.583
4.186
4.701
5.436
1978
1979
1980
1981
1982
6.929
7.242
7.487
7.864
7.691
7.483
7.879
8.220
8.656
8.479
7.742
8.064
9.288
10.977
n.a.
8.125
8.463
9.748
11.520
n.a.
6.168
6.400
6.558
6.870
6.711
Average annual growth of implied velocity
1950-70
1975-81
1975-82
3.1
4.7
3.7
3.4
5.4
4.3
3.3
7.6
n.a.
3.1
7.6
n.a.
3.5
4.0
3.1
1. Velocity is measured as the ratio of the sum of aboveground (or
recorded) GNP and underground G N P to an Ml measure.
n.a. Not available.
these ratios involves a model based on theories
of the demand for money involving aboveground
transactions or portfolio considerations.
As an indication of what the standard approach can explain, charts 1 and 2 display actual
and predicted values of the alternative ratios
from simulations using the Federal Reserve
Board's quarterly econometric model. 13 The explanation rests primarily on interest rates, income, wealth, and prices, with no reference to
underground activity. In general, the model's
demand equations for the components of Ml and
M2 fit the data fairly well. The equation explaining the demand deposit component of checkable
deposits, however, includes a shift variable for
the two and one-half years from 1974:3 to 1976:4;
when this variable is removed, the model's equation, like most conventional demand equations,
overpredicts demand deposits and, by implication, underpredicts the ratio of currency to
checkable deposits.
Although this failure to explain the spurt in the
actual currency ratio might be viewed as evidence of an active underground economy, another explanation is perhaps more likely. The Board
model and other models provide no evidence of
any unexplained strength in currency itself during this period; the shortfall in predicting the
currency ratio stems principally from the unexplained weakness in demand deposits. 14 Extensive analysis of this weakness in demand deposits suggests that, facing persistently high
opportunity costs of holding demand deposits,
deposit holders sought to improve their money
management techniques. 15 This quest was aided
by improvements in computer and telecommunications technology, by the development of various cash management procedures such as cash
concentration accounts and remote disbursement facilities, and by the growing use of new
financial instruments that complemented many
of these new techniques.
.40
.30
1. Predicted using the Federal Reserve Board's quarterly econometric model.
More important, the simple and modified cur-
182
Federal Reserve Bulletin • March 1984
2. Actual and predicted ratios of currency to M2
Dollars/dollar
.10
1. Predicted using the Federal Reserve Board's quarterly econometric model.
rency-ratio methods ignore these ongoing technological and financial innovations because they
both assume that the ratio of checkable deposits
to currency is constant in the two sectors. This
assumption is made solely for technical convenience, of course, but it does have the effect of
denying any role whatsoever to important economic determinants of these ratios such as interest rates. For example, the introduction of negotiable order of withdrawal accounts nationwide
in 1981 and Super NOW accounts in 1983 lowered the opportunity cost of holding transaction
accounts (the difference between an open market
yield such as a Treasury bill rate and the own
yield on the NOW account), making it relatively
more attractive to hold balances in such accounts
rather than in currency. Because the currencyratio methods do not account for such aboveground innovations, they incorrectly attribute the
induced change in the observed currency ratio to
developments in the underground economy.
While conventional empirical work predicts
the ratio of currency to M2 fairly accurately,
Tanzi's model does also, so that his work merits
a closer look. 16 In contrast to standard money
demand approaches, which assume only motives
related to aboveground transactions and portfolio considerations for holding currency and deposits, Tanzi's approach includes an explicit tax
term in the demand equation for currency relative to M2 to represent the incentive to evade
taxes. The quality of the resulting estimates of
the size of underground activity depends on the
accuracy of the underlying specification and estimation of the tax effect. The data reveal that the
positive relationship between the ratio of currency to M2 and taxes is strong only for the period
from 1930 to 1945.17 Indeed, the relationship
breaks down in the postwar period, and thus
Tanzi's model provides little evidence that an
increase in taxes spurs an increase in underground activity. 18
Each of the three currency-based methods
involves arbitrary choices about relative income
velocities, the proportions of currency and
checkable deposits used in the tw0 sectors, and
the benchmark period. 19 In addition, these methods contain the implicit assumption that recorded GNP covers no underground activity. In fact,
the Bureau of Economic Analysis (BEA) of the
Department of Commerce compiles estimates of
the national income and product accounts in
recognition of the many distortions in the underlying sources erf GNP data ^created by legal
activity in the underground economy. Although
BEA's success in limiting such distortions may
be debated, it is erroneous to assume that reported GNP reflects only the aboveground economy.
For instance, underreporting of income for tax
purposes creates few serious statistical problems
in the national income accounts because IRS
data do not play an important role in developing
estimates of national income. But where IRS
sources must be used, reported income is adjusted on the basis of the IRS audit studies. In
general, BEA prefers methods that impute a
value of income, and such methods often are
independent of whether a recorded monetary
transaction has taken place. As a result, recorded GNP reflects at least some part of the legal
underground economy. Furthermore, recently
BEA has sought to adopt procedures that better
estimate the component of underground activity
that is conceptually consistent with its measures
of income and product. The currency-ratio methods, nevertheless, are based on the assumption
that recorded GNP is compiled independently of
transactions in the underground economy. As a
result, the currency-ratio estimates of unrecorded GNP are invariant to changes in the way
recorded GNP is estimated. Presumably, improved estimates of recorded GNP alter the ratio
of unrecorded to recorded GNP. Because estimates of underground activity based on currency-ratio procedures do not reflect such changes,
those estimates are probably overstated.
A Monetary Perspective
The transaction-ratio method is more difficult
to evaluate because, unlike the demand for currency and checkable deposits, total transactions
are not subject to any established theory. Casual
inspection of the ratio of transactions to income
suggests that it often moves positively with interest rates. In a recent paper, Porter and Offenbacher offer a partial explanation for such movements based on an inventory model of money
holdings under uncertainty. 20 This paper shows
that the volume of debits to demand deposits for
business firms should be positively related to
both interest rates and a scale variable (which
serves as a proxy for the size of the firm) and
negatively related to the costs of transactions. 21
With this model, several of the major movements
in the ratio of transactions to GNP can be
explained without reference to factors associated
with the underground economy. Nonetheless,
additional theoretical and empirical work is required before the Porter-Offenbacher results can
be viewed as firmly established. 22
In comparison to the various currency-ratio
methods, the transaction-ratio method has several distinct advantages, at least in principle. The
method makes no assumption regarding the relative income velocities in the aboveground and
underground sectors. It also treats currency and
deposits in a symmetric fashion; that is, the
method does not assume that currency is the
exclusive medium of exchange in the underground sector or that currency and deposits are
used in fixed ratios in each of the two sectors.
Moreover, improved estimates of recorded GNP
appropriately modify the resulting estimate of
the ratio of underground GNP to recorded GNP;
for example, an increase in recorded GNP will
necessarily lower this ratio.
On the other hand, the transaction-ratio method requires the specification of a "benchmark"
transaction ratio in the aboveground sector; as
with the other methods, the choice of this ratio is
a critical assumption. In practice, however, data
limitations are the single most important problem
in implementing the transaction-ratio method:
the dollar volume of many significant financial
transactions is simply not compiled either privately or publicly. 23 For example, direct measurements of the turnover of the currency stock
do not exist, and indirect procedures must be
used to estimate it.
on Underground Economic Activity
183
The recent estimates of underground GNP
from the transaction-ratio method suggest that
increases in the transaction ratio itself are attributable largely to transactions in checkable deposits, not currency. 24 Because the likelihood of
"catching" a participant in an underground
transaction is probably higher when checkable
deposits rather than currency are used, it seems
counterintuitive to associate all of the implied
increase in total income arising from the increase
in checkable deposits with underground transactions. In addition, the 18.1 percent annual rate of
growth in total income velocity in 1981 is about
four times recorded velocity growth for that year
(see table 2). Such a large increase in velocity is
also unlikely and suggests that some purely financial component of total transactions has not
been properly netted out, so that an upward bias
has been imparted to the estimated transaction
ratio for that year. Similar surges in velocity
growth during other recent periods may also be
due to various netting-out problems arising in the
compilation of total transactions.
Thus far, this article has evaluated several
methods that rely on an analysis of monetary
statistics to estimate underground economic activity in the United States: the simple and modified currency-ratio methods, Tanzi's variant of
the currency-ratio approach, and the transactionratio method. According to all of these methods,
the relative size of the underground economy has
increased over the last decade; Tanzi's estimates
of underground GNP are relatively small (about 5
percent of recorded GNP), while those produced
by the transaction-ratio method exceed 60 percent of recorded GNP. Unfortunately, each of
these methods has significant problems of a
methodological nature or in data requirements
that call into question the basic reliability of the
approach.
AN EVALUATION OF THE CURRENCY
DATA
Although the monetary-statistic methods described earlier for estimating underground activity are not based exclusively on currency data,
many observers believe that the most compelling
evidence concerning the scope of the underground economy may be inferred from such data.
They point to the remarkably high level of cur-
184
Federal Reserve Bulletin • March 1984
rency holdings per household and the sizable
proportion that is held in large denominations. At
the end of December 1983, currency holdings
stood at almost $1,970 per household in the
United States; just under 40 percent of this
stock, or nearly $800, was in hundred-dollar
bills. Even allowing for the currency that is held
by businesses in cash registers and by financial
institutions as vault cash or that has been lost or
destroyed, these magnitudes seem to contradict
everyday experience. 25 Even if a substantial fraction of the currency stock were held abroad, the
implied level of domestic currency holdings
would still be strikingly large.
It is difficult to account for such currency
holdings in terms of a transaction theory of the
demand for money. As a rough calculation, suppose that all income were received in the form of
currency and all households were paid biweekly.
The average household would then receive about
$1,060 every two weeks. 2 6 If, in addition, all of
the currency were spent on goods and services
during the two-week interval between income
payments, the typical household would on average have about half its original pay, or about
$530, in the form of currency. The substantial
discrepancy between this predicted amount and
actual currency balances, which are roughly four
times as large, indicates the nature of the difficulty for a transaction-based model of currency.
Other factors, however, may account for holdings greater than the predicted $530. For example, many households are paid less frequently
than biweekly, at least for part of their income,
and some households may hold currency for
precautionary reasons and as a store of wealth.
On the other hand, several factors work to
reduce currency holdings below this hypothetical
average. Many households are paid exclusively
by check, and many use checkable deposits for a
substantial part of their transactions. In addition,
households that are adding to their wealth by
saving or are paid more frequently than biweekly
will hold less currency. On balance, it seems
difficult to explain the actual level of currency
holdings solely on the basis of aboveground
transactions; an underground explanation for
these levels must be taken seriously. 27
Despite the high and somewhat puzzling level
of currency balances per household, the evidence does not suggest that growth in currency
3. Ratios of currency to travelers checks,
consumption, GNP, and debt
Dollars/dollar
n i i i H i i i M i i i a a i i i M i i
1960
1965
1970
1975
1980 1983
1. Debt in the domestic nonfinancial sector.
has been excessive relative to deposits or expenditures. Charts 2 and 3 show that, on balance
over the past 20 years, total currency has been
declining, not rising, relative to other financial
aggregates such as M2, travelers checks, or
domestic nonfinancial sector debt—or relative to
nominal expenditures such as GNP and measured personal consumption. In the case of M2,
this movement is not surprising because the
average nominal rate of return on the noncurrency part of this aggregate has moved up sharply over this period as a result of deregulation and
higher nominal interest rates, while the nominal
pecuniary return on currency remained at zero.
A similar declining pattern is apparent, at least
through the mid-1970s, for the ratio of currency
to travelers checks. This decline is somewhat
unexpected because travelers checks, like currency, bear no nominal rate of return but, unlike
currency, leave a paper trail. Thus, if underground activity were relatively more important
over this period, that ratio should have risen,
other things equal. Finally, currency movements
over the past years have been highly predictable
in conventional empirical models of money demand, which relate real currency holdings per
capita to real consumption expenditures per capita and the opportunity cost of holding money but
which make no reference to the underground
economy (chart 4).
A Monetary Perspective
4. Actual and predicted holdings of currency
Billions of dollars
1. Predicted using the Federal Reserve Board's quarterly econometric model.
The accurate prediction of the growth of currency balances by conventional empirical models
may be fortuitous, of course. Because currency
holdings are the sum of aboveground and underground holdings, a relative decline in currency
holdings in the aboveground sector owing to
changes in payment practices may offset a relative increase in underground currency holdings,
thereby leaving the total unaffected. For example, aboveground currency holders may have
economized on currency by using credit cards
more frequently. By itself, however, this factor
seems unlikely to provide the full explanation
because credit cards account for only a small
proportion of estimated total currency transactions—just over 2 percent in 1981.28 In addition,
use of currency in the aboveground economy
may have declined because a growing fraction of
individuals has been paid by check rather than
with currency. This possibility has not been
explicitly recognized in the standard currency
demand relationship; however, the predictions of
the currency equation in the Board's quarterly
model are not materially altered when it is accounted for, as Tanzi did, by using the ratio of
compensation of employees to national income
as an explanatory variable.
Still another development calls into question
the view that currency holdings provide evidence
of a growing underground economy. Since the
mid-1950s, aggregate currency balances (including vault cash) have only about kept pace with
inflation so that real currency holdings per capita
have changed only slightly (chart 5). If real per
capita holdings instead of total currency holdings
on Underground Economic Activity
185
were used in the monetary-statistic approach,
the relative size of the underground economy
would be approximately the same over most of
the postwar period. 29
Thus the evidence concerning the relative role
of the underground economy based on analyzing
the total currency stock is mixed. The data on
currency balances held per capita (or per household) are not readily consistent with an explanation of currency based on aboveground transactions; this discrepancy perhaps indicates an important underground presence. On the other
hand, currency movements over time appear to
be explained reasonably well by ongoing developments in the aboveground sector.
Although the historical data on aggregate currency do not provide unequivocal support for a
growing underground economy, proponents of
that view often point to the rising proportion of
hundred-dollar bills in the currency stock. They
contend that most large aboveground transactions are paid for by check, and that the growing
use of large-denomination bills must be attributed principally to a growing volume of underground transactions. Per capita holdings of hundred-dollar bills rose from about 0.5 in 1966 to
about 2.4 in 1982 (see chart 6). Even in real terms
(1967 dollars), the change in per capita holdings
of hundred-dollar bills is substantial: from 0.5 in
1966 to about 0.8 in 1982 (chart 6). Does this
relative shift to large-denomination bills mask
increased underground economic activity, or
does it reflect the responses of aboveground
transactors to changes in the economic environment? With regard to the latter possibility, it
should be noted that, since 1969, the hundreddollar bill has been the largest currency denomination issued. 30 Thus increases in the price level
5. Currency balances per capita
Dollars
186
Federal Reserve Bulletin • March 1984
6. Holdings of $100 bills per capita
Number per capita
Nominal
•••HH
1950
that tend to increase the dollar size of transactions should, other things equal, spur the use of
hundred-dollar bills relative to other denominations because they are more convenient in largescale transactions. 31
The importance of hundred-dollar bills in the
mix of denominations can be evaluated with a
model recently proposed by J. S. Cramer. 32
Cramer assumed that transactors attempt to
economize on the number of physical units of
currency used in an exchange of a given transaction size. Table 3 presents the results of applying
Cramer's model to the various bill denominations in the United States for various ranges of
transaction size. 33 The estimates were constructed under the assumption that all transactions up
to a certain size were equally likely to occur
while, beyond that size, the likelihood of a
transaction declined as its size increased. For
example, transactions of $2,000 were assumed to
occur less frequently than transactions of
$1,000.34 Table 3 presents calculations from this
3. Value shares of bills of various denominations
in optimal mix of denominations
for selected average transaction sizes
Percent
Average
transaction
(dollars)
12.69
25.38
38.08
50.77
63.46
76.15
88.85
101.54
114.23
126.92
$100 bills
$50 bills
12
19
25
31
37
43
49
56
62
66
13
20
28
32
34
32
29
25
21
19
$20 bills
22
33
29
23
18
14
13
12
10
9
model indicating that, as the dollar size of individual transactions increases, the proportion of
hundreds in the optimal mix of denominations
rises. For example, as the average transaction
goes from a little over $25 to a little over $100,
the optimal fraction of currency represented by
hundred-dollar bills rises from a 19 percent value
share to a 56 percent value share.
Changes in the value shares of currency held in
various denominations, shown in chart 7, seem
consistent with the calculations reported in table
3. In 1978, the share of currency in hundreddollar bills surpassed the share in twenty-dollar
7. Value shares of currency held in various
denominations of bills
Percent
bills. The chart shows that the last time a similar
event occurred was in 1942, when the amount of
money represented by the twenty-dollar denomination became larger than the amount held in
ten-dollar bills. 35 Over the period from 1942 to
1978, consumption expenditures per capita grew
from $657 to $6,049. Thus, assuming that total
transactions per capita and the average size of
transactions moved together, there is an aboveground explanation for the increasing share of
hundred-dollar bills: per capita consumption expenditures were more than nine times as large,
while the size of the denomination in which the
largest proportion of currency was outstanding
was five times as large.
Another, related explanation that focuses on
the use of hundred-dollar bills in the aboveground sector has been developed. Essentially,
this explanation describes the relationship between per capita holdings of hundred-dollar bills
and the price level. 36 The predictions from the
A Monetary Perspective
8. Holdings of $100 bills per capita,
actual and predicted 1
Number per capita
1. In-sample years are not shaded. Out-ot-sampie years are.
2. Predicted by regression equation described in Richard D. Porter
and Amanda S. Bayer, "Evaluating Underground Economic Activity
in the United States Using Monetary Statistics," Staff Study (Board of
Governors of the Federal Reserve System, forthcoming), appendix C.
implied empirical equation are shown in chart 8.
The equation performs quite adequately in the
out-of-sample period, explaining a substantial
part of the recent increase of per capita holdings
of hundred-dollar bills.
These theoretical and empirical results suggest
that the expansion in the use of hundred-dollar
bills is related principally to normal economic
and institutional forces at work in the aboveground economy. While the amount and form of
currency holdings appear suspiciously large, the
interaction between increases in the price level
and the size pattern of available currency denominations appears to account for the actual mix of
denominations in currency holdings.
SUMMARY AND
CONCLUSION
This article has examined several estimates of
the size and growth of underground activity that
have been developed using monetary statistics.
Nearly all of these estimates imply an expansion
in the proportion of underground activity relative
to total activity and a large rise in the total
income velocity of money since 1970. Both currency-ratio methods utilize readily available
data, but they depend on several questionable
assumptions. The most critical are (1) a constant
ratio of currency to checkable deposits in the
aboveground sector despite changes in important
economic determinants such as interest rates and
on Underground Economic Activity
187
the own rate of return on negotiable order of
withdrawal and automatic transfer service accounts; (2) an erroneous belief that recorded
gross national product is estimated with no recognition of legal underground activities; and (3)
either no use of checkable deposits or the fixed
proportional use of currency and checkable deposits in the underground sector. Although the
transaction-ratio method avoids these pitfalls, it
has severe data limitations, relating especially to
the separation of purely financial transactions
from others.
Evidence has also been gleaned from an explicit model of the ratio of currency to M2, which
relates the size of the underground economy to
the incentive to evade taxes. In contrast to the
other estimates, this method suggests that the
relation of the underground sector to total economic activity has not changed significantly.
This method also makes several questionable
assumptions, however: (1) the ratio of underground GNP to recorded GNP does not vary
with the method for compiling recorded GNP;
and (2) underground transactions involve only
currency. Moreover, the method fails to find
evidence of the predicted tax effect when estimation is restricted to the postwar period.
Although the enormous size of currency holdings per capita or per household is puzzling, it
can be explained by standard demand relationships that relate currency holdings per capita to
real consumption expenditures per capita and to
the opportunity cost of holding currency. Increases in the price level combined with explicit
recognition of the available denominations of
currency appear to account for changes in the
mix of currency denominations.
The analysis of underground activity has not
progressed enough to permit a reliable estimate
of the scope of such activity from an analysis of
monetary data. Given current techniques, these
data do not convincingly support the hypothesis
that the share of the underground economy in the
total U.S. economy has grown recently. Perhaps
as more satisfactory data and techniques emerge,
better estimates can be developed. In any event,
the issues raised in attempting to measure underground activity by these methods pose some
challenging questions regarding the use of currency and deposits as transaction media in the
aggregate economy.
•
188
Federal Reserve Bulletin • March 1984
FOOTNOTES
1. Peter M. Gutmann, "The Subterranean Economy,"
Financial Analysts Journal, vol. 33 (November-December
1977), pp. 26-27; Edgar Feige, "How Big Is the Irregular
Economy?" Challenge, vol. 22 (November-December 1979),
pp. 5-13.
2. Estimates of Income Unreported on Individual Tax
Returns, U.S. Department of the Treasury, Publication 1104
(9-79), p. ii.
3. The estimates of income from illegal sources are preliminary; see Internal Revenue Service, Assistant Commissioner
for Planning, Finance, and Research, Income Tax Compliance Research (U.S. Department of the Treasury, July 1983),
pp. 9, 39.
4. Richard D. Porter and Amanda S. Bayer, "Evaluating
Underground Economic Activity in the United States Using
Monetary Statistics," Staff Study (Board of Governors of the
Federal Reserve System, forthcoming), provides a more
detailed and more technical discussion of the issues examined
in this article.
5. The method was originally suggested by Phillip Cagan to
evaluate the upward movements in the currency ratio in
World War II; see Phillip Cagan, "The Demand for Currency
Relative to the Total Money Supply," Journal of Political
Economy, vol. 66 (August 1958), pp. 303-28. The method
was later adopted by Peter Gutmann, "Subterranean Economy;" and it was subsequently modified by Edgar Feige, "A
New Perspective on Macroeconomic Phenomena: The Theory and Measurement of the Unobserved Sector in the
United States Economy—Causes, Consequences, and Implications," paper presented at the 1980 meetings of the American Economic Association.
The initial estimates of underground GNP made by both
Gutmann and Feige covered a period when the amount of
deposits in other checkable accounts such as ATS, NOW,
and Super NOW accounts was small; those investigators thus
ignored these accounts in their work and used the ratio of
currency to demand deposits. In the last few years these new
accounts have grown rapidly and have tended to substitute
for demand deposits rather than for currency; as a consequence, the ratio of currency to demand deposits has risen for
reasons totally unrelated to underground activity. Thus, in
this article, the currency-ratio estimates are based on the
ratio of currency to checkable deposits. As a reference point,
appendix table A . l presents estimates of underground activity using the ratio of currency to demand deposits.
6. Ibid.
7. Ibid, pp. 19-22.
8. Vito Tanzi, "The Underground Economy in the United
States: Annual Estimates, 1930-80," International Monetary
Fund, Staff Papers, vol. 30 (June 1983), pp. 283-305.
9. See Porter and Bayer, "Evaluating Underground Activity," for a more detailed discussion of the estimates.
10. Feige, "How Big?" and "New Perspective."
11. See Porter and Bayer, "Evaluating Underground Activity," for a detailed discussion of the data used and steps
involved in compiling the adjusted series on transactions.
12. Appendix table A.2 presents currency-ratio and modified currency-ratio velocity measures for the narrower definition of the currency ratio, the ratio of currency to demand
deposits.
13. The charts represent dynamic simulations of the equations starting in the third quarter of 1974 and extending
through the third quarter of 1983. (Appendix B of Porter and
Bayer, "Evaluating Underground Activity," presents the
equations as well as a brief explanation of their structure.) In
these simulations the determinants of the ratios—interest
rates, real income, and so forth—take on their actual historical values. The underlying equations for the components of
these ratios were estimated over various sample periods, all
of which ended in the last quarter of 1981. Thus only the last
seven quarters of the simulations are beyond the estimation
period of the equations.
14. See Gillian Garcia, "The Currency Ratio and the
Subterranean Economy," Financial Analysts Journal, vol.
34 (November-December 1978), pp. 64-69; and Richard D.
Porter and Stephen S. Thurman, "The Currency Ratio and
the Subterranean Economy: Additional Comments" (Board
of Governors of the Federal Reserve System, January 26,
1979).
15. The mid-1970s episode of weakness in demand deposits has been intensively studied; see John P. Judd and John F.
Scadding, "The Search for a Stable Money Demand Function: A Survey of the Post-1973 Literature," Journal of
Economic Literature, vol. 20 (September 1982), pp. 9931023; Richard D. Porter, Thomas D. Simpson, and Eileen
Mauskopf, "Financial Innovations and the Monetary Aggregates," Brookings Papers on Economic Activity, 1:1979, pp.
213-29; Thomas D. Simpson and Richard D. Porter, "Some
Issues Involving the Definition and Interpretation of the
Monetary Aggregates," in Controlling the Monetary Aggregates III, Federal Reserve Bank of Boston Conference Series
No. 22 (October 1980), pp. 161-234; and Jared Enzler, Lewis
Johnson, and John Paulus, "Some Problems of Money Demand," Brookings Papers on Economic Activity, 1:1976, pp.
261-80.
16. One difference between the conventional models and
Tanzi's model is that the latter uses the old definition of M2,
which includes only M2 deposits held at commercial banks.
17. Even for the period before 1946, the specification can
be questioned because it does not take into account the
introduction of deposit insurance, which altered the demand
for currency relative to M2.
18. When the estimation period for Tanzi's model is restricted to the postwar years 1946-80, the estimated coefficient for the tax variable has the wrong sign when T, the ratio
of total tax payments to income, is used; that is, as taxes
increase the ratio of currency to M2 falls. With TW, the
weighted average tax rate on interest income, the estimated
tax coefficient does not come close to being statistically
significant. See Porter and Bayer, "Evaluating Underground
Activity," appendix B-10.
19. In Tanzi's method, the benchmark assumption concerns the threshold level for taxes. Tanzi assumes that
underground activity develops as soon as any tax is placed on
output. However, this threshold tax effect could conceivably
be triggered at some value above zero.
20. Richard D. Porter and Edward K. Offenbacher, "Financial Innovations and Measurement of Monetary Aggregates" (Federal Reserve Bank of St. Louis, forthcoming).
21. The particular proxy used for transaction costs is
described in Simpson and Porter, "Some Issues," table 4,
form number 1, p. 283. Also, for simplicity the scale variable
is taken to be recorded GNP.
22. The simulation results from the Porter-Offenbacher
model are merely within-sample predictions and thus are not
particularly strong evidence regarding the explanatory power
of these equations. See Porter and Bayer, "Evaluating Underground Activity," for a more detailed discussion of the
results.
23. Ibid.
A Monetary Perspective
24. Ibid.
25. At the end of December, vault cash was about 12
percent of the total. There are no available data indicating
total currency held by businesses. Robert D. Laurent has
estimated that lost currency has never accounted for more
than 4 percent of currency in circulation; see his "Currency
in Circulation and the Real Value of N o t e s , " Journal of
Money, Credit, and Banking, vol. 6 (May 1974), pp. 213-26.
26. This estimate assumes $2.4 trillion in aggregate annual
disposable income and 87.3 million households in the United
States.
27. Per household or per capita figures may be misleading
and may not indicate the median level of currency balances.
For example, in 1975 currency holdings per capita were about
$330. This figure may seem high for that time, but it does not
necessarily imply that a person chosen at random would hold
such an amount; some would hold more and some less. A
relatively small fraction of the population might well hold a
sizable portion of the total stock of currency. Such a distribution would be consistent with the size distribution of demand
deposit holdings, which is highly skewed: in 1975,0.6 percent
of demand deposit account holders held about half of all the
demand deposits, according to estimates by the Federal
Deposit Insurance Corporation. If the size distribution of
currency were the same, it would imply that, excluding the
0.6 percent of the population that held the largest amounts,
currency holdings per capita in 1975 would be only $165, or
half of overall per capita holdings.
28. See Porter and Bayer, "Evaluating Underground Activity."
29. Because the total economy has grown over this period,
the relative constancy of real currency holdings per capita
implies, other things equal, that the underground economy
has shrunk relative to the aboveground economy. In terms of
the Board's estimated currency equation, the increase in the
opportunity cost of holding currency and autonomous improvements in managing currency apparently have offset the
increased level of real transactions, thereby leaving real
currency holdings per capita about unchanged.
30. Denominations larger than $100—$500, $1,000, $5,000,
and $10,000 bills—have not been printed since 1946. They
have not been issued since 1969.
31. The importance of fifty-dollar bills should increase
somewhat also, but hundred-dollar bills appear, as will be
on Underground Economic Activity
189
shown below, to be more efficient over a wider range of
transaction sizes.
32. J. S. Cramer, "Currency by Denomination," Economics Letters, vol. 12 (1983), pp. 299-303.
33. We are indebted to Gary Anderson of the Board staff
for his technical assistance in compiling this table.
34. Formally, the size distribution of transactions is assumed to be uniform (all transactions are equally likely) up to
a given point and to follow Pareto distribution beyond that
point; that is, the distribution function for transactions was
specified to be
I
c if x
c
3
^ ' " i f x s p ,
where p is the upper limit of the uniform portion of the
distribution and c = a/p(a + 1 ) . The parameter in the Pareto
distribution a was set equal to 1.65. This is the approximate
value estimated for a variant of this model discussed below to
explain per capita holdings of hundred-dollar bills. See Porter
and Bayer, "Evaluating Underground Activity," appendix
C.
35. A comparison of table 3 and chart 6 for fifty-dollar
bills, however, raises one problem with this explanation. The
table suggests that fifty-dollar bills should have surpassed
twenty-dollar bills before they were overtaken by hundreddollar bills, but the chart indicates that that event never
occurred at all. If the analysis used to explain hundred-dollar
bills in the text is basically correct, the reconciliation of the
share data for fifty-dollar bills must require a different Pareto
parameter estimate or different size distribution for transactions than that set out in note 34. An econometric investigation of these questions is currently being conducted by
members of the Board's staff.
36. Basically, the regression model discussed in the text is
derived from the following assumptions: (1) the size distribution of transactions is a Pareto distribution for transactions
above a given size; (2) in response to inflation, the size
distribution shifts in proportion to the change in the price
level; and (3) hundred-dollar bills are used in large transactions. See Porter and Bayer, "Evaluating Underground Activity," especially appendix C, for further discussion of this
model.
Appendix tables appear on the following
page.
190 Federal Reserve Bulletin • March 1984
A . l . C o m p u t e d u n d e r g r o u n d G N P u s i n g t h e ratio o f
currency to demand deposits1
Year
Simple currencyratio method
A . 2 . I m p l i e d total i n c o m e v e l o c i t y o f m o n e y u s i n g
t h e ratio o f c u r r e n c y t o d e m a n d d e p o s i t s t o
estimate underground activity1
Modified currencyratio method
Year or period
Simple currencyratio method
Modified currencyratio method
Billions of dollars
1950
1955
1960
1965
1970
1975
15.9
14.7
17.3
31.7
62.6
152.2
21.4
15.5
17.0
38.6
88.6
248.3
1978
1979
1980
1981
1982
280.2
359.6
445.2
683.5
832.1
489.9
649.8
829.2
1375.2
1748.4
Implied velocity
1960
1965
1970
1975
3.706
4.381
5.001
5.986
3.704
4.423
5.124
6.324
1978
1979
1980
1981
1982
7.076
7.645
8.108
9.983
10.620
7.684
8.444
9.120
11.882
13.111
Average annual rate of growth of implied
velocity
Ratio to recorded GNP, percent
1950
1955
1960
1965
1970
1975
5.6
3.7
3.4
4.6
6.3
9.8
7.5
3.9
3.4
5.6
8.9
16.0
1978
1979
1980
1981
1982
12.9
14.9
16.9
23.1
27.1
22.6
26.9
31.5
46.6
56.9
1. The estimates of underground GNP in this table are derived via
the simple and modified currency-ratio methods, as described in the
text, but use the ratio of currency to demand deposits as opposed to
the ratio of currency to total checkable deposits.
1950-70.
1975-81.
1975-82.
3.1
8.9
8.5
3.2
11.1
11.0
1. Velocity is measured as the ratio of the sum of aboveground (or
recorded) GNP and underground GNP to an Ml measure.
191
Treasury and Federal Reserve
Foreign Exchange Operations
This 44th joint report reflects the
TreasuryFederal Reserve policy of making available additional information on foreign exchange operations from time to time. The Federal
Reserve
Bank of New York acts as agent for both the
Treasury and the Federal Open Market Committee of the Federal Reserve System in the conduct
of foreign exchange
operations.
This report was prepared by Sam Y. Cross,
Manager of Foreign Operations for the System
Open Market Account and Executive Vice President in charge of the Foreign Group of the
Federal Reserve Bank of New York. It covers the
period August 1983 through January 1984. Previous reports have been published in the March
and September [October 1982] BULLETINS
of
each year beginning with September 1962.
During the period from August 1983 through
January 1984, the dollar rose strongly on balance
against the European currencies, but was little
changed against the Japanese yen. As the period
began, the dollar was moving sharply higher and
reached a 9Vi year high against the German mark
in mid-August. The dollar then declined gradually through early October, before it gained renewed strength and surpassed its earlier highs,
ending the period 5 to 9 percent higher on
balance against the European currencies.
At the beginning of August the U.S. economy
was recovering more vigorously and inflation
was declining more rapidly than had been expected by many observers. At the same time, the
U.S. authorities were perceived as willing to
allow the demand pressures to be reflected in
higher interest rates. In many other industrial
countries, by contrast, economic recovery was
more modest; unemployment was near peak levels or declining only slowly; and the monetary
authorities were perceived as reluctant to tighten
monetary policies. Under these circumstances,
the dollar was quickly bid higher in unsettled
trading as the reporting period opened. The U.S.
monetary authorities and foreign central banks
intervened in coordinated operations during one
limited period, which helped restore order in the
market.
Market participants soon began to question
whether the dollar could maintain the high levels
reached in early August. New data pointed to a
considerable slowing of economic growth in the
United States, and evidence suggested that upward pressure on U.S. interest rates might be
dissipating. M l growth had also decelerated, and
the inflation rate remained low, leaving market
participants with little reason to expect a firming
in interest rates and some room to hope for an
easing. Moreover, private credit demands were
appearing less strong than expected just months
before, and estimates of the government's quar1. Federal Reserve reciprocal currency arrangements
Millions of dollars
Amount of
facility,
Jan. 31,
1983
Amount of
facility,
Jan. 31,
1984
Austrian National Bank
National Bank of Belgium
Bank of Canada
National Bank of Denmark
Bank of England
Bank of France
German Federal Bank
Bank of Italy
250
1,000
2,000
250
3,000
2,000
6,000
3,000
250
1,000
2,000
250
3,000
2,000
6,000
3,000
Bank of Japan
Bank of Mexico
Regular facility
Special facility
Netherlands Bank
Bank of Norway
Bank of Sweden
Swiss National Bank
5,000
5,000
700
325
500
250
300
4,000
700
0)
500
250
300
4,000
600
600
Institution
Bank for International
Settlements
Swiss francs/dollars
Other authorized European
currencies/dollars
Total
1,250
1,250
30,425
30,100
1. Facility, which became effective August 30, 1982, expired on
August 23, 1983.
192
Federal Reserve Bulletin • March 1984
terly financing needs were revised downward.
These developments triggered a rally in U.S.
credit markets, with short-term interest rates
dropping about 1 percentage point by early October. They also were seen as increasing the scope
for monetary authorities abroad to take a more
accommodative policy stance, without risking
the inflationary impact of a depreciating currency. Under these circumstances the dollar declined through October 7 about Axh percent on a
trade-weighted basis and about 6V2 percent
against the German mark from its August peaks.
In early October, however, it became clear
that U.S. growth had remained strong in the third
quarter. Consequently, projections of the gain in
gross national product for the full year—by both
the administration and market participants—
were revised upward as much as a percentage
point from those made as recently as July. The
evidence of robust growth quickly stopped the
decline in U.S. interest rates and again overshadowed the more modest economic recoveries of
several European countries. The U.S. expansion
once again became more evident, encouraging
expectations of rising private credit demand. At
the same time, market concern grew over the
lack of action to reduce current and prospective
fiscal deficits and, by mid-December, short-term
interest rates had moved back up near the levels
of early August.
In addition, optimism spread that the U.S.
economy might be on the threshold of a lengthy
period of strong but noninflationary expansion,
with high productivity growth. The unemployment rate plummeted. Many attributed aggressive business hiring programs to growing confidence that earlier efforts to deregulate the
economy, improve labor market flexibility, and
adjust the corporate tax structure to spur investment were all beginning to bear fruit. In this
environment the dollar developed upward momentum in the exchanges, climbing with each
new economic statistic that suggested stronger
expansion. There were also reports of substantial
foreign interest in U.S. investments, based on
expectations of improving corporate profits and
yields on equity investments, as well as the
continued attraction of comparatively high yields
on fixed-income securities. As a result, the exchange markets showed little reaction to projec
tions for the 1983 current account deficit of
roughly $40 billion.
The dollar also benefited from "safe haven"
considerations prompted by events that heightened international tensions, such as intensified
fighting in Lebanon and escalation of threats in
the Iran-Iraq conflict. Episodes of increased
political and financial uncertainty in Europe also
led to bidding for dollars.
After mid-December, U.S. interest rates eased
off, but only slightly. The dollar dipped briefly
toward the year-end, but then resumed its climb.
It hit a ten-year high of DM 2.8505 against the
mark on January 10 and set records against most
other European currencies before again easing
back somewhat by the close of the period.
Over the six-month period, the U.S. authorities intervened in the exchange markets on five
occasions to calm disorderly markets. Two of
these occasions were described in previous reports. The first of these involved operations on
four business days between July 29 and August
5, which were coordinated with foreign monetary
authorities. The U.S. authorities purchased
$182.6 million equivalent of German marks and
$71.5 million equivalent of Japanese yen during
that period. The second occurred on October 31
and November 1 when the U.S. authorities entered the market to purchase a total of $29.6
million equivalent of Japanese yen. The remaining three instances, one in December and two in
early January, involved purchases of German
marks and totaled $193.4 million equivalent. All
intervention during the six-month interval was
split evenly between the Federal Reserve and the
Treasury.
In other operations during the six-month period, Mexico fully repaid the remaining portion of
its special combined credit facility. As noted in a
previous report, Mexico prepaid on August 15
outstanding swaps of $100.8 million to the Treasury and $54.3 million to the Federal Reserve.
Drawings of $395.3 million and $214.8 million
were repaid to the Treasury and the Federal
Reserve respectively upon maturity on August
23, and the facility then expired. This facility had
originally consisted of $600 million from the
Treasury and $325 million from the Federal Reserve. It was provided in cooperation with other
central banks, which together with the United
Foreign Exchange Operations
193
2. Drawings and repayments by the Bank of Mexico under special combined credit facility1
Millions of dollars, drawings or repayments ( - )
Drawings
Federal Reserve special facility
for $325 million
U.S. Treasury special facility
for $600 million
Total
Outstanding
Jan. 1,
1983
1983:1
1983:2
1983:3
Outstanding
Jan. 31,
1984
257.3
67.8
-56.0
-269.0
(2)
477.8
735.0
122.3
190.0
-104.0
-160.0
-496.0
-765.0
(2)
(2)
1. Data are on a value-date basis. Because of rounding, figures may
not add to totals.
2. Facility, which became effective August 30, 1982, was fully
repaid and expired on August 23, 1983.
States, extended credit totaling $1.85 billion to
the Bank of Mexico.
During 1982 and 1983, the Treasury participated, along with authorities from other nations, in
providing liquidity support to the Bank for International Settlements for credit facilities the BIS
provided to the Central Bank of Brazil and to the
National Bank of Yugoslavia. This support took
the form of the Treasury, through the Exchange
Stabilization Fund (ESF), agreeing to be substituted for the BIS as a creditor in the event of
delayed repayments. In November, both Brazil
and Yugoslavia completed all repayments under
these facilities, and all contingent Treasury commitments expired following these repayments to
the BIS.
On December 23, the Treasury entered into a
swap agreement of $50 million with the Central
Bank of Jamaica in support of Jamaica's negotiations on an economic adjustment program with
the International Monetary Fund (IMF). On December 29, Jamaica drew $10 million on this
facility.
Also on December 29, the ESF sold $345.5
million of Japanese yen and $345.5 million equivalent of German marks to the Treasury general
account for the purpose of financing a portion of
the increase in the U.S. quota subscription to the
IMF.
In the period from August through January,
neither the Federal Reserve nor the Treasury
general account realized any profits or losses
from exchange transactions. As a result of the
sale of currencies to fund the subscription payment to the IMF, the E S F recorded a transaction
loss of $204.8 million, reflecting the shift of a
valuation loss, which was previously recorded in
the published ESF balance sheet, into the cate-
gory of transaction loss. As of January 31, cumulative unrealized valuation, or bookkeeping,
losses on outstanding foreign currency balances
were $979.2 million for the Federal Reserve and
$673.0 million for the ESF. Both the realized
ESF loss and the unrealized valuation losses
reflected the fact that the dollar had strengthened
since the foreign currency balances were acquired.
The Treasury and the Federal Reserve invest
foreign currency balances acquired in the market
as a result of their foreign exchange operations in
a variety of instruments that yield market-related
rates of return and that have a high degree of
quality and liquidity. Under the authority provided by the Monetary Control Act of 1980, the
Federal Reserve has invested some of its foreign
currency resources in securities issued by foreign governments. As of January 31, the Federal
Reserve held the equivalent of $1,545.2 million in
these securities, while the Treasury's holdings
were equivalent to $1,978.3 million.
3. Net profits or losses ( - )
on U.S. Treasury and Federal Reserve
current foreign exchange operations1
Millions of dollars
U.S. Treasury
Period
1983:1
1983:2
1983:3
1983:4
Valuation profits and losses on
outstanding assets and
liabilities as of Jan. 31, 1984
1. Data are on a value-date basis.
Federal
Reserve
Exchange
Stabilization
Fund
General
account
0
0
0
0
0
.5
17.0
0
-204.8
0
38.3
58.1
70.1
0
0
979.2
-673.0
0
194
Federal Reserve Bulletin • March 1984
GERMAN
MARK
Early in August, the German mark fell to a 9XAyear low of DM 2.7440 against the dollar, then
reversed course to recover about 6V2 percent by
early October. This turnaround coincided with a
perceived improvement in German economic
growth prospects, a firming of interest rates, and
a subsiding of the large outflows of long-term
private capital that had persisted since 1980.
Although its recovery against the dollar proved
to be temporary, in August the mark began a
gradual and sustained rise against most continental currencies, as Germany's low inflation rate
and current account surplus continued to compare well with the performances of its main
trading partners.
By mid-August, German business confidence
was reviving as prospects for economic expansion improved. Increased construction, inventory, and investment spending had spurred economic activity, and later reports confirmed the
strong GNP growth in the second quarter. The
long decline in employment came to a halt, and
export orders began to increase despite the revaluation of the mark within the EMS earlier in the
year and weak growth in Europe and most developing countries.
As the economic outlook brightened, market
participants speculated that, to avoid renewed
mark depreciation and the consequent inflationary pressures, the Bundesbank might raise interest rates in response to increases that had recently taken place abroad. In addition, money supply
growth remained above the Bundesbank's target
range of 4 to 7 percent. Under these circumstances, market interest rates in Germany moved
back up over the summer. Then, effective September 9, the Bundesbank raised its Lombard
rate V2 percentage point to 5V2 percent, citing the
need to reduce central bank money growth, to
strengthen confidence in the mark, and to limit
domestic inflationary pressures. Following this
move, money market rates did not rise further,
interest rate differentials vis-a-vis dollar assets
narrowed as U.S. rates eased back, and Germany's bond market joined the rally then taking
place in bond markets abroad.
Against this background, portfolio capital
shifted back into Germany, and the mark rose
against the dollar to DM 2.5620 on October 7, its
highest level during the period under review. The
German currency also strengthened within the
EMS, rising steadily from the bottom to the top
of the band by early October. The Bundesbank
intervened as part of coordinated operations with
the United States in early August, and Germany's foreign exchange reserves declined $1.1
billion by the end of September to $37.1 billion.
At that point the mark turned lower against the
dollar, in a trend that continued through the
remainder of the period under review. The mark
began to decline as events in the United States
challenged the view that the U.S. expansion was
weakening substantially and that dollar interest
rates would decline.
But, at the same time, negative sentiment
began to reemerge toward the German economic
and political situation. It became clear that the
momentum the economy developed in the second quarter had not been maintained. Thirdquarter industrial production stagnated, presaging the modest growth of GNP later published;
and progress was slow in reducing unemployment. Demand for German exports did pick up,
but rising imports kept the external sector from
providing a net stimulus. The German current
account in fact moved into a small deficit in the
third quarter, and projections of the surplus for
1983 were revised downward.
Market participants concluded that, with the
German recovery appearing to lose strength, the
Bundesbank would not strongly resist a renewed
decline in the mark by raising German interest
rates, even if rates abroad were to increase. The
government continued to emphasize its goal of
reducing Germany's fiscal deficit, and the burden of economic stimulus was thought to rest on
monetary policy. Central bank money growth
was now decelerating toward its target range,
and the earlier pickup in domestic prices had not
continued. Market participants also noted that
official spokesmen and business leaders pointed
to the potential benefits of mark depreciation for
stimulating exports.
Consequently, the decline of the mark against
the dollar, which started early in October, continued through mid-January. International political tensions and domestic controversies also had
an adverse effect on the mark during this period.
At times, market participants sold marks in response to fears that the escalation of military
Foreign Exchange Operations
conflicts in the Middle East and elsewhere might
stimulate renewed "safe haven" flows into the
United States. The mark also weakened against
the pound and the yen, but eased only slightly
against other continental currencies. By January
10, the mark had fallen to DM 2.8505 against the
dollar, 11 percent below its October high, and
had declined 10 percent against the Japanese yen
over the same period.
As the mark fell, the Bundesbank intervened
regularly at the daily fixing in Frankfurt. It also
operated forcefully in the market on several days
in an effort to contain rapid declines of the mark
against the dollar. On three occasions during
December and January, the U.S. authorities intervened to purchase marks when market conditions became disorderly, operating in each case
for the U.S. Treasury and the Federal Reserve
equally. In total, the Trading Desk purchased a
total of $193.4 million equivalent of marks.
The mark fluctuated widely against the dollar
during the remainder of January, recovering
somewhat to close the period at DM 2.8110.
During January, both the dollar and yen had
reached levels against the mark, which some
market participants doubted were sustainable,
and data indicated some improvement in German
economic performance as compared with the
United States. Meanwhile, Germany's stock
market strengthened, outperforming the U.S.
market by a wide margin during January. Under
these circumstances, market participants began
to conjecture that international investors would
increase the mark-denominated portion of their
portfolios to restore a more traditional currency
distribution. On several occasions in January,
German officials publicly expressed the view that
the dollar was becoming increasingly vulnerable
to a decline.
During the six-month period, the mark declined 6 percent on balance against the dollar. It
dropped 9Vi percent against the Japanese yen
and eased marginally against the Swiss franc.
But the mark held on to its early gains within the
EMS to close modestly higher against other
member currencies. In effective terms, the mark
appreciated about 1 percent over the six-month
period under review. Germany's foreign exchange reserves posted little net change after
September, closing the six-month period down
on balance $1.1 billion at $37.1 billion.
195
JAPANESE YEN
Over the month of August the yen declined about
2 percent against the dollar to a low of ¥247.50 in
early September. The yen fell quite abruptly at
first as the dollar climbed steeply against all
currencies, but the decline moderated thereafter.
The yen's downward move through August in
part reflected market concern that the Japanese
economy had not yet emerged from a lengthy
period of slow growth, leaving the outlook for
higher profits and asset yields in Japan relatively
limited. Many doubted that yen interest rates
would be allowed to match any U.S. rate increases because a rise in interest rates in Japan
would dampen the still meager economic expansion. In this environment, Japan's long-term
capital account deficit widened and in fact exceeded the current account surplus in August.
The decline in the yen was resisted by Bank of
Japan intervention during August, and the Japanese authorities joined with the United States in
the coordinated intervention operation around
the beginning of the month.
After the beginning of September the yen
turned higher against the dollar, benefiting from
evidence that the Japanese economy had begun
to expand more vigorously. It was reported that
GNP had grown at a 3.6 percent rate in the
second quarter (later revised to 4.5 percent) and
that industrial production and the index of leading indicators had risen strongly in August. Inflation remained very low, making it unlikely that
the authorities would need to temper any acceleration of Japan's economy on these grounds.
Japan's large current account surplus contributed to better market sentiment for the currency,
despite the persistence of sizable long-term capital outflows. Against this background, the yen
strengthened and quickly outpaced other currencies, which had begun to rise against the dollar
several weeks earlier. Over the five weeks
through October 7 the yen appreciated more than
7 percent against the dollar to ¥230.10, and
edged up against the European currencies as
well.
During the remainder of the reporting period,
the yen traded narrowly around the ¥234 level
against the dollar, while it strengthened to record
levels against most European currencies. Exchange market participants reassessed the out-
196
Federal Reserve Bulletin • March 1984
look for the yen, especially against the mark and
other continental currencies, in the view that the
yen had considerably greater scope to appreciate
against those currencies than did the dollar,
which had been in an uptrend since mid-1980.
The more robust performance of Japan's economy contrasted with the rather slow growth in
Europe and was a major factor supporting the
yen during this period. Japan's economy was
seen as relatively innovative and dynamic, it had
continued to expand—albeit slowly—during the
recent worldwide recession, and profits were
forecast to rise strongly. The Japanese inflation
rate remained below even the best European
price performance, and the country's higher savings and investment rates promised continued
higher growth in the future.
Even though the economic outlook in Japan
had improved during the autumn, expectations
grew that there would be further government
action to stimulate the economy. Such stimulus
was expected to be aimed at raising imports to
ameliorate the increasing worldwide trade frictions, especially before a visit to Japan by President Reagan scheduled for November. Then on
October 21 the government announced a sixpoint program to boost economic activity, imports, and capital inflows. The package was
accompanied, as expected, by a cut of Vi percentage point in the discount rate to 5 percent.
The Bank of Japan announced its readiness to
counter any consequent downward pressure on
the yen either by raising short-term interest rates
or intervening in the exchanges. Although the
stimulative impact of these actions was seen as
relatively modest, they served to reinforce optimism about the durability of Japan's expansion.
Late in October the yen briefly moved lower
against the dollar following a military flare-up in
the Middle East, and the Bank of Japan came
into the market to support the currency. The
U.S. authorities joined with the Japanese central
bank in intervention, purchasing a total of $29.6
million equivalent of yen for the Federal Reserve
and Treasury accounts on October 31 and November 1.
During November and much of December the
yen steadied against the strongly rising dollar and
continued to set records against most European
currencies. The yen remained firm even when
Prime Minister Nakasone on November 28 dis-
solved the Diet and called for elections to be held
three weeks later. Elections had been anticipated
by the exchange markets, but few saw much
chance of major changes in economic policy as a
result. In the event, the governing Liberal Democratic party lost more seats than expected,
threatening its parliamentary majority and triggering steep but temporary declines in the yen
and the Tokyo stock and bond markets. Both the
yen and Japanese stock and bond prices quickly
rebounded when it became clear that Prime
Minister Nakasone would be able to retain control of the Diet and to sustain the basic thrust of
Japan's economic policies.
From mid-December into January, optimism
about the Japanese economy gathered more momentum, reflected in both a rising yen and soaring stock prices in the Tokyo market. It was
reported that Japan's third-quarter real GNP
growth had climbed to 6.2 percent, industrial
production had risen sharply in November, and
projections of 20 percent increases in corporate
profits for 1984 were published. Meanwhile, Japan's monthly trade surpluses remained at nearrecord levels, and the consumer price index fell
in December to just 1.8 percent above its yearearlier level. In this context, the yen climbed to a
record ¥81.94 against the German mark on January 10, after which some profit taking on cross
positions against the European currencies
brought the yen back slightly from its highs.
At the same time, the yen remained nearly
unchanged against the dollar throughout January
despite the dollar's surge against the European
currencies. At the close of the six-month period
the yen, at ¥234.60, was V/2 percent higher
against the dollar and up 9XA percent against the
German mark. Over the same period, Japan's
foreign exchange reserves remained virtually unchanged and stood at $20.7 billion at the end of
January.
In early November, at the conclusion of President Reagan's November 9 visit to Tokyo, Treasury Secretary Regan and Finance Minister Takeshita issued a Joint Press Announcement that
contained a number of measures designed to
liberalize further Japan's capital markets, internationalize the yen, and allow the yen to more
fully reflect its underlying strength. The announcement also reported that the Japanese Ministry of Finance and the U.S. Treasury Depart-
Foreign Exchange Operations
ment would establish a joint ad hoc group of
financial authorities on yen-dollar exchange rate
issues. This group, cochaired by Secretary Regan and Finance Minister Takeshita, would monitor progress in implementing the measures and
develop and implement additional steps toward
the agreed objectives of liberalizing Japan's capital market and internationalizing the yen.
Swiss
FRANC
The Swiss franc was in a rising trend against the
otlpr European currencies as the period opened.
In fact, by mid-August, the franc had climbed
about IV2 percent against the German mark since
March to around SF 0.80. The franc benefited
from a narrowing of the usual interest disadvantage of Swiss-franc assets, as Swiss interest rates
rose on market expectations that the Swiss authorities would act to reverse the overshooting of
the monetary growth target earlier in 1983. Other
factors also lent some support to the franc. The
inflation rate had declined further to the lowest
level in 4V2 years, unemployment remained low
compared with that in most countries, and the
current account surplus continued to run at an
annual rate of about $3.5 billion.
But even as the franc rose against the mark in
early August, market participants began to ques
tion the franc's scope for further appreciation.
Approach of the franc toward the franc-mark
rate of SF 0.80 had in the late 1970s prompted
action by the authorities to protect the competitiveness of Swiss industry within its main markets in Europe. Indeed, Swiss officials were
beginning publicly to voice concern over the
franc's appreciation relative to other European
currencies. In early August, the Swiss National
Bank announced that it had intervened in the
foreign exchange market, acting in concert with
several other central banks and purchasing German marks against both dollars and Swiss francs.
Central bank officials also stated that they would
not offset the resulting addition to liquidity in the
Swiss banking system.
Also during August, market participants came
to the view that Swiss monetary policy was being
eased slightly, as Swiss interest rates declined
along with those in the United States. In early
September the Swiss National Bank did not join
197
the German and Dutch authorities in raising
official lending rates, and the gap between Swiss
and German interest rates widened about IV2
percentage points by early October to almost 2
percentage points at the three-month maturity.
In these conditions, the Swiss franc lagged behind the German mark's sharp recovery against
the dollar in August and then stabilized just
above the SF 0.81 level against the mark for the
next two months.
In early November the Swiss franc began to
appreciate gradually against the German mark
and other European currencies even as it fell
against the dollar, gaining slightly on a tradeweighted basis. The franc benefited in part from
Switzerland's political and economic stability.
An improvement in the Swiss economy, although
modest, supported the franc through this period.
Growth resumed in the third quarter of 1983 and
was forecast to reach over 1 percent in 1984.
Swiss inflation continued to subside, falling to a
twelve-month rate of 1.4 percent in October,
below the rate of Switzerland's main trading
partners. At the same time, interest in investments denominated in Swiss francs remained
strong, allowing the continued large offerings by
foreign borrowers in the Swiss market to be
easily absorbed without placing noticeable pressure on franc interest rates or the exchange rate.
During the same period, Swiss fiscal and monetary policies appeared to market participants to
be shifting more toward restriction. The Swiss
government proposed a budget for 1984 aimed at
further reducing federal financing requirements
to 0.6 percent of GNP, while the monetary
authorities were seen as placing more emphasis
on price stability than on tempering the franc's
rise against the mark. Market participants took
special note that the central bank did not intervene to cushion the franc's rise against the
German mark as the cross rate again approached
the SF 0.80 level in late November. Senior
central bank officials spoke publicly of the need
to give priority to the fight against inflation and
announced that the target for central bank money
growth would be kept at 3 percent in 1984. This
growth rate, if attained, would be V2 percentage
point less than the growth actually achieved
during 1983.
Thus, while dropping to a low against the
dollar of SF 2.2655 on January 10, the Swiss
198
Federal Reserve Bulletin • March 1984
franc reached its highest level against the German mark of SF 0.79. The franc ended January at
SF 2.2455 against the dollar, down nearly 5
percent over the six-month period, while in
terms of the German mark the Swiss currency
rose 1 lA percent on balance to close at SF 0.7988.
Switzerland's foreign exchange reserves were
little changed from six months earlier at $11.7
billion, with fluctuations within the period mainly reflecting foreign currency swap operations to
adjust liquidity in the Swiss banking system.
STERLING
Sterling was seldom the focus of attention in the
exchanges and was virtually unchanged on balance through mid-September. Thereafter, it declined gradually to end the six-month period 8
percent lower against the dollar and down by
modest amounts against most other currencies.
The primary influence on the exchange rate
during the August-January interval was developments in world oil markets. Expectations of
lower British interest rates gave rise to some
pressure on sterling in late September and early
October, but this factor then became relatively
unimportant.
As the dollar rose strongly through mid-August, sterling held up better than most currencies. British money market rates declined and
widened the dollar's interest rate advantage. But
inflation in the United Kingdom had also
dropped below 5 percent by early 1983, even as
Britain's economy was in its third year of slow
recovery. In addition, sterling was supported by
firm world oil prices as the earlier glut in world
oil supplies dissipated and was replaced by concern over supply shortages should the war between Iran and Iraq disrupt shipments from the
Persian Gulf. The shift of view in the oil market
improved prospects for Britain's current account
and budget through higher government tax and
royalty income from North Sea oil production.
These factors continued to provide support for
the currency through late September, and sterling generally remained close to $1.50 against the
dollar and 85 on the Bank of England's tradeweighted index.
But, in late September, new data showed some
deceleration of monetary growth and market
participants began to suspect that the government might lower interest rates to stimulate the
economy and to lower the exchange rate. Substantial progress had already been made in regaining Britain's international competitiveness—
the inflation rate had been cut in half in the last
year, sterling had fallen almost 20 percent in
effective terms from its peak in early 1981, and
labor productivity had begun to improve. But
most observers felt that production costs in the
United Kingdom were still relatively high, especially for manufactured goods and especially in
comparison with the Continent. Concern about
competitiveness was underlined by release of
data showing that output growth was sluggish,
much of the growth of consumption was being
met by imports, and exports remained depressed
even though the economies of some of Britain's
major trading partners on the Continent had
begun to expand somewhat more vigorously.
On October 3 the Bank of England cut its
money market intervention rate Vi percentage
point. Sterling fell sharply in response, quickly
declining nearly 3 percent against the mark to
about DM 3.85 and below $1.48 against the
dollar. The Bank of England exchange rate index
fell to 82.4. Sterling then recovered somewhat
and fluctuated narrowly during the balance of
October.
Oil market developments, which had been a
consistent support to sterling through late summer, had a mixed influence on the currency
between October and January. Sterling benefited
when the conflicts in Lebanon and the Persian
Gulf flared up, raising the specter of restricted oil
supplies and higher prices. But, at other times,
evidence of ample supplies and an easing of spot
oil prices in the Rotterdam market undermined
sterling. In late December, one element of uncertainty was eliminated when the British National
Oil Company announced that it would hold
prices at current levels through the first quarter
of 1984.
Monthly U.K. trade data had some influence
on exchange rates from time to time, but without
any significant effect on balance. Though the
figures were erratic, the current account remained in surplus and appeared to improve
somewhat at the year-end.
From mid-December to the end of January,
sterling declined slightly in effective terms and
Foreign Exchange Operations
traded steadily against the German mark, but
fluctuated widely against the dollar. Against the
dollar, sterling closed the six-month interval
down 8 percent at $1.4035. On balance, sterling
declined 2 percent against the German mark and
about AVA percent on the effective index of the
Bank of England. Over the six-month period,
Britain's foreign exchange reserves declined almost $500 million to $8.5 billion.
FRENCH
FRANC
As the period opened, market participants were
awaiting evidence that the French government's
austerity program, announced after the EMS
realignment in March, had begun to reduce inflation and to narrow the current account deficit.
The program sought a 2 percent reduction of
domestic demand through contractionary fiscal
policy and more restrictive monetary growth
targets and was expected to reduce economic
growth nearly to zero for 1983. While it was clear
at midsummer that the economy had slowed,
there was little apparent progress toward the
program's main goals of cutting inflation substantially and achieving balance in the current
account. Without evidence of such progress,
traders questioned the sustainability of the
franc's position near the top of the EMS, and
some expected exchange rate pressure to emerge
as soon as early fall. Benefiting from reflows
after the March realignment as well as an ECU 4
billion loan from the European Community,
France's foreign currency reserves stood at
$18.5 billion at the beginning of the period.
In early August the franc remained firm at the
top of the EMS, but declined sharply against the
strongly rising dollar. The franc reached a record
low of F F 8.2450 versus the dollar on August 11,
and during that period the Bank of France intervened to support the franc as the dollar rose
across the board. Thereafter the franc, along
with other EMS currencies, turned higher
against the dollar in a trend that continued
through early October, and the franc held firm at
the top of the EMS through early autumn. One
reason for this strength was that the restrictive
fiscal policy had by then slowed the growth of
income and thereby reduced imports. Also, on
the monetary side, growth of M-2 had slowed to
199
its reduced 1983 target of 9 percent, helping to
keep interest rates firm and bolster the franc.
But, while franc interest rates held steady, Germany raised its Lombard rate in September,
narrowing interest rate differentials favorable to
the franc. Moreover, the French inflation rate
had not yet begun to decline, and a large inflation
differential persisted between France and Germany. Thus, even though the franc remained
near the top of the EMS, there was at times
considerable selling pressure on the franc against
the mark, which by early October had risen to
join the franc near the top of the EMS.
From late October through December, more
evidence accumulated that progress was being
made toward some of the main goals of the
austerity program. The French external accounts
improved strikingly. The first monthly trade surplus since 1979 was registered in September,
followed by news of a current account surplus
for the third quarter as a whole (later revised to a
small deficit). Shortly thereafter, the government
partially relaxed the strict foreign exchange controls imposed earlier in the year and announced
plans to reduce substantially its foreign borrowing.
Also, the government reaffirmed its commitment to a policy of reducing inflation through
1984. The government budget for 1984 limited
the increase in spending to 6.3 percent in nominal
terms, or about zero growth after adjustment for
inflation. Also, the authorities called for average
wage increases of no more than 6 percent in
1984. The growth target for M-2 was lowered to
5.5 to 6.5 percent, compared with a 9 percent
target for 1983. The reaffirmation of the government's commitment to curb inflation, together
with the continued improvement of France's
trade performance, tended to reinforce confidence in the franc. Consequently, there was little
exchange market reaction to labor unrest in
December and January, which underscored the
difficulties in achieving the government's stabilization program.
In this environment the franc traded firmly at
the top of the narrow EMS band through the end
of January. Franc interest rates remained relatively high, attracting nonresident demand for
franc investments. The franc closed the period at
F F 3.0591 against the German mark, slightly
above its midpoint. The franc, along with its
200
Federal Reserve Bulletin • March 1984
partner currencies, fell back to a record low of
FF 8.7020 against the dollar in mid-January, but
subsequently recovered somewhat to end the
period IVi percent lower at F F 8.5990. France's
foreign currency reserves fell about $700 million
over the six-month period and stood at $17.7
billion at the end of January.
Throughout the period, French entities continued to borrow abroad, although the government
did not arrange any new large-scale foreign credits. In January, Finance Minister Delors stated
that France's external debt had reached $53
billion at the end of 1983, compared with $44
billion at the end of 1982.
ITALIAN
LIRA
The lira traded in the upper portion of its wide
EMS band from the beginning of August to midOctober, although several brief flurries of pressure during this period brought the lira somewhat
lower in the EMS.
Supported by high Italian interest rates, the
lira had remained well above the top of the
narrow EMS band since the March realignment.
Money market interest rates of 17 percent and
higher reflected the Bank of Italy's continuing
efforts to narrow the gap between inflation rates
in Italy and elsewhere in Europe. By August,
some progress on inflation was becoming evident
as a result of the restrictive monetary policy, the
decline in economic activity, and the January
modification of the scala mobile (wage indexation system). As the reporting period opened, the
lira was also drawing support from a narrowing
of Italy's trade deficit as declining domestic
demand depressed imports.
During August and September, however, there
were several episodes of pressure on the lira
within the EMS, in part reflecting market participants' concern that the apparent improvements
in Italy's trade and price performance might
prove temporary or insufficient to match the
progress in other European economies. In particular, deceleration in inflation was seen as threatened by the Italian government's continued difficulty in containing the fiscal deficit. In fact,
many industrialists argued that the lira's devaluations within the EMS in recent years had not
fully compensated for Italy's higher inflation rate
and that Italy's prospects for expanding exports
might therefore be limited even if economic
growth in other European economies picked up
sharply.
Against the dollar, the lira, along with other
EMS currencies, fell sharply in early August,
and the Bank of Italy intervened with modest
dollar sales. Subsequently, the lira lagged somewhat behind the other EMS currencies when
they turned higher against the dollar in a rise that
lasted through mid-October. During those
weeks, several brief spates of speculation and
the usual tapering-off of summer tourist inflows
brought the lira slightly lower within the EMS.
The Bank of Italy intervened on several of these
occasions to resist the lira's decline. By mid
October the lira's margin above the narrow EMS
band had eased back about 1 percent, and the lira
was little changed on balance against the generally lower dollar. Against the German mark the lira
had declined about 3 percent.
After mid-October, pressure on the lira subsided and the currency held its position comfortably
above the narrow band through the end of the
period under review. The Italian authorities took
advantage of the lira's stability during this period
to relax foreign exchange controls partially. In
addition, the Bank of Italy was able to build up
foreign exchange reserves, although there are
typically reserve outflows in late fall. By the end
of December, foreign currency reserves had risen $854 million from the end of September to
$18.5 billion. The relatively strong position of the
lira reflected continued firm interest rates and
some signs of improvement in inflation, economic growth, and the domestic policy situation.
The Bank of Italy maintained a restrictive
policy stance through the fall and winter, while
the government budget deficit continued to grow
and the unemployment rate continued to establish postwar records. On October 23, Bank of
Italy Governor Ciampi warned that "without
effective curbs on pay and public borrowing
there could be no relaxation of the highly restrictive monetary policy" and called for a comprehensive incomes policy to bring inflation down to
the government's 1984 target of 10 percent. Italy's high money market rates declined somewhat
during this period but considerably less than did
the inflation rate.
The progress on inflation that became evident
Foreign Exchange Operations
over the fall and winter was the most significant
for Italy in years. Consumer price increases fell
from a year-on-year rate of 16.3 percent in the
second quarter to 13.3 percent by October and
hit 12.5 percent by January. Wholesale price
increases fell below 10 percent in August for the
first time in five years and then stayed below that
level through the remainder of the period.
More broadly, signs emerged that the economy had begun to grow again in the third quarter,
and in fact it turned out that real GDP had risen
at a 3.6 percent rate. The external accounts
continued to improve, leaving the 1983 trade
deficit about a third smaller than that of 1982. In
November the trade account actually registered
a surplus, the first since October 1979. The
current account for the first eight months of 1983
also turned around—to a surplus of Lit 1.0
trillion as compared with the Lit 5.4 trillion
deficit in the same period a year earlier. At the
same time, Prime Minister Craxi's government
achieved modest success in getting action on its
budget initiatives. The new coalition government
that took power in August had proposed a strict
austerity budget aimed at reducing the huge
fiscal deficit and further reducing inflation and,
in fact, obtained Parliamentary approval for the
general outlines of its program by the end of
December—only the third Italian budget of the
postwar period to be passed on schedule.
While progress was made on several fronts, it
remained clear that Italy needed significant additional progress before its economic performance
would be in line with those of its neighbors.
Economic growth had revived, but unemployment in Italy continued to rise. And, while Italy's
inflation decelerated over the period, by January
consumer price inflation was still 10 percentage
points above that in Germany and AVI percentage
points above that in France. In wholesale prices,
however, the gap narrowed to 7 percentage
points versus Germany, and for France the gap
reversed sign; French wholesale price inflation
exceeded that in Italy by 6 percentage points in
the year to December.
While holding steady against the EMS currencies, the lira continued to fall to record lows
against the dollar, reaching Lit 1,722.75 on January 12. The lira then recovered somewhat to
close the period at Lit 1,713, down almost 9
percent on balance against the dollar.
EUROPEAN MONETARY
201
SYSTEM
At the beginning of August the currencies within
the EMS were trading in a pattern that had
changed little since the last realignment on
March 21, 1983. The Irish pound and the French
franc were at or near the top of the narrow band,
and the Italian lira remained more than 3 percent
above the top, within the wide bands allowed for
that currency. The German mark remained at the
band's lower limit and had been joined there by
the Belgian franc, while the Netherlands guilder
and the Danish krone had moved to the middle of
the joint float.
In mid-August, as the dollar fell from its peaks,
the German mark began to rise steadily within
the EMS. The Netherlands guilder and the Danish krone also moved higher, leaving the Belgian
franc more isolated at its EMS floor. By early
October the currencies of Germany, France, the
Netherlands, Denmark, and Ireland were all
clustered near the top of the narrow EMS band in
a configuration that was generally maintained
throughout the rest of the period. The Belgian
franc required only modest support to keep it
within its lower limit. Against the dollar, the
EMS currencies declined 6 to 9 percent on
balance over the August-January period despite
sizable net intervention sales of dollars by the
member central banks. At the close of the period, the EMS bilateral limits adopted in March
1983 had lasted longer than any other since those
agreed upon in November 1979.
The stability in the EMS exchange rate relationships reflected a growing convergence of
economic performances among member countries at a time when the dollar was consistently
strong against all EMS currencies and thus not
straining the cross rates. The convergence, most
apparent in trade and price developments, was in
part a consequence of the austerity programs
instituted by several member countries during
1982 and the spring of 1983. The March realignment also contributed to a narrowing of bilateral
trade gaps between member countries.
The trade balance improvement was most dramatic in the case of France, but a combination of
weak domestic demand and gains in competitiveness also narrowed the deficits or generated
surpluses on the current accounts of Belgium,
Denmark, Ireland, and Italy. In Germany and the
202
Federal Reserve Bulletin • March 1984
Netherlands—the countries whose currencies
were revalued the most in the last realignment—
the external surpluses were little changed. There
was a similar, although less pronounced, convergence of inflation rates as higher inflation countries experienced some moderation in price increases while others saw their inflation rates
stabilize at low levels.
Success in trimming fiscal deficits was less
visible during the period, as increased debt service costs and rising unemployment kept most
countries' fiscal gaps from narrowing significantly despite serious budget cutting efforts. Domestic opposition to tough austerity measures in
several countries led to some questioning of the
governments' ability to carry through their policies and temporarily brought individual currencies under pressure; in fact, the Danish government fell during the period, following debate
over fiscal restraint, which had been reflected
briefly in pressure on the krone.
Monetary policies remained generally restrictive, with changes in official interest rates corresponding closely to the respective currencies'
positions within the EMS. Central bank lending
rates were raised in Germany and the Netherlands early in the period when the mark and the
guilder were in the bottom half of the band. The
Belgian franc was at or very near the floor of the
joint float throughout the six months, and in late
November the National Bank of Belgium increased its interest rates 1 percentage point to
counter some speculative pressure on the exchange rate. By contrast, official interest rates
were cut in Ireland and Denmark at times when
the currencies of those countries were trading at
or near the ceiling of the narrow band.
CANADIAN
DOLLAR
As August opened, the Canadian dollar was
trading narrowly around Can.$1.23 ($0.8130)
against the U.S. dollar, while both rose strongly
against most other currencies. The Canadian
currency had held steady since early summer
even though interest rate differentials, which
normally favor Canadian assets, had shifted in
favor of the U.S. dollar by as much as a full
percentage point.
The Canadian currency was buoyed by the
remarkable improvement in Canada's economic
performance. The country's severe 1981-82 recession had given way to an exceptionally strong
rebound, spurred by vigorous domestic demand
and by growth in the United States. While Canadian imports picked up in response to the boom
at home, strong demand from the United States
helped push Canada's trade surplus to nearrecord levels, keeping the current account in a
surplus, unusual for Canada, through the first
half of 1983. Canadian inflation, which had remained stubbornly high, plunged from doubledigit levels in late 1982 to 5.5 percent in July, its
best level in ten years.
Canadian fiscal policy had provided stimulus
for the recovery, while a successful program for
public-sector wage and price restraint had reinforced the effects of recession in bringing about
the marked slowing in inflation. At the same
time, monetary policy remained oriented toward
a return over time to price stability. The Bank of
Canada had earlier ceased to specify targets for
domestic monetary aggregates in the implementation of monetary policy. Instead, it was monitoring a variety of economic and financial variables, including the exchange rate. The exchange
rate was cited as a major influence on domestic
prices, of particular importance at a time when
the authorities were moving to consolidate the
hard-won progress on inflation.
After the middle of August, U.S. interest rates
turned lower, and by early October the interest
differentials adverse to Canadian investments
were nearly eliminated. Nevertheless, the Canadian dollar did not strengthen against the U.S.
dollar along with the other foreign currencies
during this period, in part because a rise in
imports, spurred by robust domestic demand,
was eroding the current account surplus.
After U.S. interest rates had begun to rise in
October, market participants became concerned
that Canadian interest rates would not match the
rise. Despite the rapid growth of Canadian industrial production, output had still not regained its
prerecession levels and the unemployment rate
remained above 11 percent. In this context and in
view of the dramatic progress on inflation, market participants expected the Canadian authorities to limit interest rate increases. Canadian
Foreign Exchange Operations
interest rates rose only slightly during November, and the negative interest rate gap widened
once again.
The Canadian dollar thus began to decline
early in November. The rate movement prompted some increase in trading in the currency, both
in the interbank market and on Chicago's IMM,
from the low turnover that had prevailed during
its long period of stability. The Canadian currency continued to drop in December even after
Canadian money market rates moved significantly higher for the first time in over a year. With
U.S. rates also rising, differentials remained unfavorable to Canadian assets. In addition, the
announcement that the current account had
moved into deficit for the third quarter contributed to negative sentiment. The Bank of Canada
entered the market at times to counter the pressure against the Canadian dollar, and Canadian
foreign exchange reserves fell $570 million dur-
203
ing November and December, mainly reflecting
this intervention.
The Canadian dollar recovered in late December as U.S. interest rates turned lower, first
narrowing and then eliminating the interest rate
disadvantage of Canadian assets. After dropping
to a low of Can.$1.2532 ($0.7980) in early January when the U.S. dollar rose strongly against all
foreign currencies, the Canadian currency resumed its rise over the rest of the month as
interest differentials began to favor Canadian
dollar investments. In addition, the currency
benefited from the publication of November
trade statistics, showing that the trend of declining monthly surpluses since May had begun to
reverse. The currency ended January at
Can.$1.2482 ($0.8012), down 1V2 percent from its
level six months earlier. Over the period as a
whole, Canadian foreign exchange reserves had
declined $350 million to $2.8 billion.
204
Industrial Production
Released for publication
March 15
average, the February index was 3.9 percent
above the earlier high reached in July 1981.
In market groupings, output of consumer
goods increased 0.9 percent in February. There
was a rise of 1.9 percent in the production of
home goods, and output of nondurable consumer
goods advanced 1.0 percent. However, auto assemblies, at an annual rate of 8.0 million units in
February, were about the same as the January
Industrial production increased an estimated 1.2
percent in February following a rise of the same
size in January. As in January, the gains in
output were widespread among products and
materials, with especially large increases evident
in home goods, construction supplies, and durable goods materials. At 159.9 percent of the 1967
1967 = 100
170
_
:
-
FINAL PRODUCTS
190
-
MATERIALS
Nondurable
190
—
150
S'
\
\
170
150
130
130
-
Business equipment
170
-
_
/
110
110
90
90
A
Consumer goods
-
Defense and space
'i
I
i
I
l
190
CONSUMER GOODS
170
INTERMEDIATE PRODUCTS
Business supplies
Nondurable
\
150
7
u
\v
Durable \ /
/
\J
130
Construction supplies
J
L
Annual rate, millions of units
18
14
10
8
6
Domestic assemblies
J
I
I
i
I
1978
1982
1984
1980
All series are seasonally adjusted and are plotted on a ratio scale.
170
150
130
110
1969-70=100
180
AUTOS
140
190
1978
1980
1982
1984
Auto sales and stocks include imports. Latest figures: February.
205
1967 = 100
Percentage change from preceding month
1984
Grouping
Jan.
Jan.
Feb.
Percentage
change,
Feb. 1983
to Feb.
1984
1984
1983
Feb.
Oct.
Nov.
Dec.
Major industry groupings
Total industrial production
158.0
159.9
.8
.2
.5
1.2
1.2
15.8
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment
Defense and space
Intermediate products
Construction supplies
Materials
159.0
156.8
159.6
163.7
158.0
168.1
127.5
167.1
154.8
156.4
160.7
158.2
161.1
164.9
159.6
169.2
129.2
169.7
157.8
158.8
.5
.4
-.3
-.5
-.1
1.6
.9
.7
.6
1.2
.1
.3
-.5
-.5
-.6
1.7
.9
-.6
-.5
.3
.8
1.0
.8
1.6
.5
1.5
1.4
-.1
-.1
.1
1.3
1.3
1.5
3.3
.7
.9
1.4
1.1
2.2
1.2
1.1
.9
.9
.7
1.0
.7
1.3
1.6
1.9
1.5
14.5
13.9
12.3
22.7
8.6
18.6
11.3
16.8
21.7
17.7
159.2
147.7
175.9
124.4
177.1
161.5
150.3
177.7
123.7
175.8
.7
.8
.6
1.0
-1.6
1.5
2.0
.9
.6
-1.6
1.4
1.8
1.0
-.6
-.7
16.9
21.3
11.8
7.0
8.5
Major industry groupings
Manufacturing
Durable
Nondurable
Mining
Utilities
.1
.6
-.5
2.4
-.1
.3
.8
-.2
2.1
2.0
NOTE. Indexes are seasonally adjusted.
rate of 8.1 million units; March assemblies are
also scheduled near those rates. Production of
business equipment increased 0.7 percent in February, with especially large gains in manufacturing, power, commercial, and transit equipment; the output of building and mining
equipment declined again, reflecting reduced oil
and gas well drilling activity.
Production of supplies for construction and
business use increased strongly in February after
small declines in the closing months of 1983.
Output of durable materials increased 2.0 per-
cent in February. There were sharp rises in the
production of basic metals such as steel and in
the output of parts for equipment and for consumer durables. Production of nondurable materials gained 1.2 percent, and with coal output
rising significantly, energy materials advanced
0.8 percent.
In industry groupings, manufacturing output
increased 1.4 percent, reflecting gains of 1.8
percent in durables and 1.0 percent in nondurables. Output declined in February for both utilities and total mining.
206
Statements to Congress
Statement by Paul A. Volcker, Chairman, Board
of Governors of the Federal Reserve
System,
before the Committee on the Budget, U.S. Senate, February 29, 1984.
I am pleased to appear before you today as you
focus on the first Concurrent Budget Resolution
for fiscal year 1985.1 shall address myself briefly
to the prospects and challenges that face us as we
consider both monetary and fiscal policies for the
remainder of 1984 and the years beyond. I believe we have much upon which to build in
working toward long-lasting expansion. But it
also seems to me evident that difficult decisions
are necessary now to make that prospect a
reality.
Over the past two years inflation has slowed
dramatically, reaching the lowest rate in about a
decade. The first of those years was a period of
serious recession. But 1983 was a year of recovery stronger than most had believed was likely to
occur. The increase of almost 61/t percent in real
output during 1983 was roughly in line with the
postwar recovery norm, and the decline in unemployment has been even sharper than usual. The
fact that we were able to achieve vigorous recovery while containing inflation is what is so promising for the future.
The pressures of recession, deregulation of
some important industries, and import competition have all contributed to a greater sense of
discipline and realism in pricing and wage bargaining. But we cannot, of course, claim success
against inflation until we can combine greater
price stability with prosperity over an extended
period.
The chances of "building-in" greater stability
will depend heavily on workers having the opportunity for gains in real earnings and on satisfactory corporate profits. The past two years
have provided a more favorable setting in both
respects. The real income of the average worker
has risen as price increases slowed faster than
wages. After-tax economic profits have recov
ered strongly and, relative to the gross national
product, are close to the highest years of the
1970s.
If these gains are to be maintained, we shall
need productivity growth, we shall need a balanced expansion that avoids bottlenecks, and we
shall need to encourage competition and investment.
There is some evidence that the dismal productivity trend of the late 1970s is changing for
the better. Some of that evidence is qualitative or
particular to one industry or another—new efforts at cooperation between management and
labor, more flexible work rules, and less regulation. On an aggregative level, the evidence, while
not yet conclusive, suggests that we may be
seeing not just typical cyclical gains in productivity but also more lasting improvement. Productivity gains from here on are likely to be smaller
than those seen in the initial quarters of recovery. But there is also reason to hope that the
skills of a more experienced work force, coupled
with management innovations and technological
progress, can sustain a somewhat more favorable
trend over the years ahead.
That prospect is, of course, dependent in important part on new investment—as is our ability
to avoid bottlenecks. We have, indeed, seen a
rapid increase in some types of investment during the recovery period. But so far, rising business investment has been largely concentrated in
relatively short-lived equipment rather than in
long-lived plant or major machinery that would
add substantially to production capacity. Housing has also rebounded. But, overall, net new
private investment has remained relatively low
as a proportion of total GNP, as shown in
chart l. 1
As we move from recovery to the expansion
phase of economic activity, business investment
1. The attachments to this statement are available on
request from Publications Services, Board of Governors of
the Federal Reserve System, Washington, D.C. 20551.
207
should rise over a broader front. Changes in tax
laws enacted in recent years should work in that
direction. But the question remains whether we
can, as a nation, generate the supply of savings
necessary to support both rising investment and
a huge government deficit. That, it seems to me,
is the key policy issue before us.
The importance of dealing with that issue is
highlighted by several well-known facts. Interest
rates are already high—too high—in absolute
terms and relative to current price trends, tending to restrain those types of investment in which
interest costs loom large. In at least a few
industries—paper, certain plastic materials,
some types of electronic equipment—capacity
constraints are already looming, and long lead
times of investment mean that plans must be
implemented soon to avoid bottlenecks and
threats to noninflationary expansion. As the
economy grows, more inventory investment will
also be needed, adding another demand to our
limited supply of savings.
For the time being, we have been able to
supplement our domestic savings by drawing on
a large capital inflow from abroad. But, as I will
discuss a little later, that development carries
risks and dangers of its own and cannot be
sustained indefinitely.
MONETAR Y POLIC Y
I have recently reviewed in some detail with the
Banking Committees our intentions with respect
to monetary policy. In summary, the Federal
Open Market Committee (FOMC) essentially
reaffirmed the ranges for the monetary and credit
aggregates for 1984 that were tentatively established last July. Those ranges call for growth of
the broader aggregates, M2 and M3, of between 6
and 9 percent and growth in M l of 4 to 8 percent.
These ranges are Vz to 1 percentage point below
those for 1983.
The ranges for 1984 envisage that relationships
between monetary and economic activity and
inflation—summarized in the " v e l o c i t y " of money—will broadly follow more normal trends and
cyclical developments, after departing markedly
from past patterns in 1982 and early 1983. On
that assumption, monetary and credit growth
should be fully consistent with real economic
growth in 1984 in a range of 4 to 43A percent,
provided that inflation, as anticipated, does not
accelerate markedly. The gains in output are
expected to generate a further expansion of new
j o b opportunities, and the unemployment rate is
expected to decline to the area of IVi to IVA
percent by year's end. These economic projections, which are " c e n t r a l " tendencies of projections of the members of the F O M C , are broadly
consistent with the short-term projections of the
administration and the Congressional Budget Office (CBO).
We do intend, as the year progresses, to assess
closely the relationship between monetary and
economic activity and inflation, testing the assumptions and the analysis that suggest more
normal " v e l o c i t y " relationships are returning. In
shaping policy, however, we are strongly conscious of the need to avoid any strong resurgence
of inflationary pressures as the economy expands.
Economic projections extending several years
ahead are necessarily more problematical. Both
the administration and the CBO have projected
continuing growth, reduced unemployment, and,
in varying degrees, limited further progress
against inflation. Projections of that sort, as a
basis for planning, seem to me reasonable. But
we should not be deluded into mistaking a projection for a certainty—or even a probability—
unless we are willing to take the measures reasonably necessary to achieve that end. Specifically, the way the final choices before this committee are reached will bear critically on the
chances of meeting those economic projections.
In this context, more rapid monetary and
credit growth in an effort to speed progress
toward lower interest rates would all too likely
be counterproductive. The economy, driven in
large part by the purchasing power implicit in the
deficit, is already growing at a satisfactory pace.
By feeding the concerns about inflation, excessive monetary growth would, in the end, have a
perverse influence on interest rates. The resultant heightened fears of inflation and instability
would only reduce incentives to save and the
willingness of firms to make long-term commitments to productive investment. The continuing
flow of funds from abroad, upon which we are
dependent for the time being, would be discouraged. Depreciation of the dollar externally as a
208
Federal Reserve Bulletin • March 1984
result of inflationary policies would not, in the
end, help our exporters, or those competing with
imports, because that depreciation would be
accompanied by inflated domestic costs.
In a real sense, one key contribution that the
Federal Reserve itself must make to our lasting
prosperity is to foster the expectation—and the
reality—that we can sustain the hard-won gains
against inflation. In the end, that will set the
stage for further lasting reductions in interest
rates and a sustained, better balanced, expansion
in economic activity generally.
THE ROLE FOR FISCAL
POLICY
What we in the Federal Reserve cannot do, by
manipulating the money supply, is achieve a
better balance between the demand for and supply of savings. That is the essential role of fiscal
policy.
The state of the federal budget affects both
directly and indirectly the demands on the economy. The increase in the deficit that was recorded last year helped account for the speed of the
rebound in economic activity, even though interest rates, in historical terms, remained high. The
deficit, in effect, increased purchasing power at a
time when the economy was still feeling the
effects of recession. However, as the economy
has grown, the adverse effects of the imbalance
of domestic savings and investment on credit
markets and on our external accounts have become more apparent. And those imbalances can
only worsen if deficits of the magnitude projected by the CBO and others—deficits without
precedent during a period of economic expansion—are permitted to materialize in coming
years.
The two charts illustrate the sharp difference
between the present budget trajectory and previous periods of economic recovery and expansion. The first of those charts, summarizing
sources and uses of available savings, shows
graphically how the deficit in 1984 will continue
to account for more than half of the demands for
savings (net of depreciation). Those demands
will, in fact, substantially exceed our capacity to
save domestically—an amount that for many
years has fluctuated roughly between 6V2 and 8V2
percent of the GNP. Consequently, we are
forced increasingly to look abroad for capital to
supplement our domestic savings.
For some time, we have been able to draw
upon foreign savings relatively easily. Funds
have been attracted not just by our interest rates
and by our strong stock market, but by relative
confidence in our economic and political stability. The effect has been to blunt some of the
impact of the budget deficit on our interest rates
and to help finance both the deficit and investment.
But, over time, reliance on increasing amounts
of foreign capital is a tenuous and risky way to
finance domestic growth and capital formation.
Such reliance exacts a large cost in terms of
rising trade and current account deficits—deficits that cannot be sustained indefinitely. Moreover, a steady and growing flow of foreign capital
is dependent on confidence in our ability to
properly manage our economic affairs, on relatively high interest rates, or both. To the extent
our monetary or fiscal policies fail to justify that
confidence—to the extent inflationary pressures
again appear to be ascendant or our external
financial position is steadily weakened by large
foreign borrowings—the greater the risk that new
capital flows from abroad will come less freely,
with adverse consequences for the dollar and for
interest rates.
The second chart underscores the extraordinary nature of our present fiscal position. In only
one earlier recession period—1975—did the federal government absorb so large a share of total
credit flows, and in every postwar economic
cycle, borrowing by the Treasury diminished
substantially as a share of total credit flows
during the second year of recovery. In contrast,
the fraction of credit going to the Treasury, at 35
to 40 percent, will not decline much, if at all, this
year from the unusually high level we saw in
1983.
To put the point another way, Treasury debt is
expected to increase about 17 to 18 percent this
year. Assuming credit grows about 10 percent
this year—just above the midpoint of the
FOMC's range—all other demands for credit
could rise some 8 percent, no more than in 1983
(the first year of recovery). This would be an
unusual cyclical pattern.
The Treasury is going to get the funds it needs
to cover the federal deficit. The question is
Statements
whether other sectors will get enough funds, at
reasonable interest rates, to support the balanced, higher investment, expansion we want.
To some extent, improved profits and cash flow,
relative to other recent expansions, could help
forestall excessive pressures. But the kind of
expansion we and others foresee does imply
more business borrowing, and housing and consumer credit needs—having increased by 11 and
15 percent respectively over the last half of the
past year—are already expanding rapidly.
In essence, the demands of the federal government limit the rate of growth of other creditabsorbing sectors of the economy. The rationing
device is interest rates held higher than would
otherwise be the case. Under the circumstances,
the more rapidly the economy grows and generates private credit demands, the greater the risk
of rising interest rates.
We can, in concept, visualize an economic
expansion that continues despite financial
strains—an expansion characterized by relatively high interest rates and by high consumption
supported by large deficits, but markedly sluggish investment and a widening trade deficit.
That, in itself, is hardly desirable, in terms of the
staying power of the expansion and future
growth and productivity. But we also have to be
conscious of the added risks such financial pressures would pose—to thrift and other financial
institutions, to less developed countries with
heavy debt burdens, and their creditors in the
United States and elsewhere, and to the fabric of
international trade. At some unknown point the
sustainability of the expansion itself would be
jeopardized.
We cannot reasonably escape from these problems by "monetizing" the Treasury debt through
excessive expansion of bank credit and the money supply. The Federal Reserve, could, in concept, take an approach that inflated all the numbers, but it cannot increase savings and reduce
the savings-investment imbalance by undermining confidence. What must be done is to deal
with the source of the problem—the excessive
deficits. While it is already late to make significant changes for fiscal year 1984, action now
affecting fiscal 1985 and later years can only
work in the direction of moderating potential
pressures; if sufficiently forceful, the market
could then well anticipate the time the actions
to Congress
209
become effective. At the least, the risks of eroding confidence and new market pressures should
be relieved.
I know you are aware of another reason why
expeditious action to reduce deficits is desirable:
the large deficits now being projected can be selfperpetuating.
The direct effects are obvious. Interest payments on debt issued to finance this year's deficit
add to the deficit next year, and interest payments on those deficits increase exponentially
into the future, making it more difficult to reverse
the momentum.
Let me illustrate the point somewhat differently. The administration and the CBO's estimates
of the administration's budget program differ in
considerable part because of the underlying economic assumptions used. Specifically, the higher
deficit forecasts of the CBO assume that interest
rates will not decline as much as the administration estimates, compounding the effects of higher
deficits originating from other factors. But, if we
seize the opportunity to take stronger and early
positive action to reduce the deficit and that
action helps encourage lower interest rates than
projected by the CBO, then the deficit can be
placed on a trend more in accord with administration estimates. In other words, procrastination plainly exacerbates the problem, leaving us
all with still more difficult choices not very far
down the road.
Somewhat less obvious may be new budgetary
pressures arising out of the attempts of various
special interests—consumers, workers,
or
firms—to offset the effects of sustained high
deficits on our international competitive position
and on interest rates. For example, the deterioration in the position of our industrial and farm
products in world markets is already generating
demands for subsidies, tax relief, and special
protections for economic sectors as diverse as
the family farm and the steel industry. The
effects of high interest rates on construction and
housing costs call forth requests for new programs in those areas.
I suspect all of this is, by now, familiar to you.
The real obstacle to action is not intellectual, but
the difficulty of reaching a practical consensus on
specific spending or revenue measures to deal
with the problem. In a sense, dealing with the
deficit seems to be everyone's second priority—
210
Federal Reserve Bulletin • March 1984
the first is particular spending programs or measures of tax relief that, viewed in isolation, have
strong justification.
Decisions in those areas—with political as well
as economic dimensions—are not within the
competence of the Federal Reserve. I can only
urge that they be faced sooner rather than later
before we are enveloped with an atmosphere of
crisis, in financial markets and elsewhere.
Much has been achieved in these past few
years to put the economy on a sounder footing—
too much, at too great a cost—to see it all
jeopardized now. The risks arise mainly from our
own actions—or inaction. The amounts required
to make a real difference—to bring the trend of
deficits under control—are surely not beyond
reach It has been done in the past, and it can be
done again.
•
Chairman Volcker presented identical testimony before the House Committee on the Budget on March
1, 1984.
Statement by Henry C. Wallich, Member, Board
of Governors of the Federal Reserve
System,
before the Subcommittee on Commerce, Transportation, and Tourism of the Committee on
Energy and Commerce, U.S. House of Representatives, March 6, 1984.
It is my pleasure to appear before this subcommittee to discuss the economic consequences of
large external deficits.
Our large and growing merchandise trade and
current account deficits, to which I shall refer as
our external deficits, have raised strong concerns
about the state of our tradable goods industries
and the prospect that the funds borrowed from
abroad along with these deficits will soon transform the United States into a net debtor economy.
The widening of the external deficits can be
related, first and foremost, to the very substantial appreciation of the dollar and the conditions
that have given rise to the appreciation. On a
weighted-average basis against the currencies of
the other major industrial countries, the dollar
has appreciated more than 45 percent since the
fourth quarter of 1980, when our current account
balance was showing a small surplus. Some of
the appreciation has reflected our relatively good
inflation performance, but even in real terms—
adjusted for changes in consumer price levels—
the weighted-average value of the dollar is now
nearly 40 percent higher than it was at the end of
1980, and roughly 25 percent higher than its
average value for the entire floating rate period
since 1973. Against the European currencies the
appreciation in real terms has come to 30 percent
against the Swiss franc, 45 percent against the
German mark, and higher amounts against the
weaker currencies. Against the Japanese yen the
dollar has risen 20 percent in real terms; against
the Canadian dollar it has depreciated slightly.
The cyclical behavior of the U.S. and foreign
economies has been a second factor contributing
both to the time profile and to the widening of the
U.S. trade deficit. The U.S. recession held down
imports and thus delayed the rise in the trade
deficit until after the middle of 1982, and the
relatively rapid expansion of the U.S. economy
in 1983 was a dominant element in last year's
trade developments, accounting for more than
half of the $30 billion increase in our trade deficit
from the fourth quarter of 1982 to the fourth
quarter of 1983.
As a third factor, the external financing problems of some countries, especially of our neighbors in Latin America, have resulted in lower
exports to these countries.
A fourth factor has been the failure in the past
of some of our industries to adjust adequately to
the pressures of international competition.
While the strong dollar and our large external
deficit reflect, in part, our improved macroeconomic performance and the greater return on
financial investment in this country, in a more
fundamental sense they are related to the budget
deficit. When the U.S. government runs a deficit, other sectors must, on balance, finance it.
Part of the financing has been provided by foreigners in the form of the net capital inflow that is
the counterpart of the current account deficit.
The remainder of the financing has been provided by private domestic residents and state and
local governments, which has diverted resources
from productive domestic capital formation.
Statements
Naturally, the net capital inflow and the surplus
of private domestic savings over private domestic investment have not arisen automatically, but
have had to be induced. As a result real interest
rates have been higher than they would otherwise have been. In addition, the higher real
interest rates have been associated with upward
pressure on the dollar: such upward pressure has
prevailed over whatever downward pressure
may have emanated from the external deficit,
which usually is a negative element in the market's evaluation of a currency. Thus the dollar
has risen. In this way, high real interest rates, the
strong dollar, and large external deficits are all
linked to large federal budget deficits.
Some of the damage from the deficit is reflected in the decline in our exports. In value terms,
exports declined about $25 billion from the
fourth quarter of 1980 to the fourth quarter of
1983, with two-thirds of the drop accounted for
by a 40 percent contraction of shipments to Latin
America, mainly to Mexico, and the other third
reflecting a 15 percent reduction in shipments to
Western Europe. It is noteworthy that exports to
both Japan and Canada expanded somewhat
from 1980 to 1983.
In volume terms, our merchandise exports
were more than 15 percent lower in the fourth
quarter of 1983 than in the fourth quarter of 1980.
Exports of capital goods declined more than 25
percent in volume terms, exports of nonagricultural industrial supplies more than 20 percent,
and exports of agricultural products about 10
percent. The longer exports remain depressed,
the more difficult it becomes to maintain marketing networks, and the more costly and difficult it
becomes to recover foreign sales.
If our current account deficit were to continue
for long at the rate of around $80 billion that is
likely to be recorded in 1984, the United States
would soon become an international debtor
country. At the end of 1983, the United States
has an estimated international net creditor position of about $125 billion. This balance could be
pushed to the minus side in little more than one
year. Our position as an international creditor
has been a major support to our balance of
payments so far. Thanks to the very productive
character of some of our foreign assets, the
United States had a surplus of investment income averaging more than $30 billion annually
to Congress
211
during the years 1979-81. This has meant that we
have been able to tolerate a sizable trade deficit
without thereby incurring a deficit in the current
account, which combines services and trade. If
our international position shifts to that of a
debtor country, this advantage will be eroded;
indeed, it is estimated that our surplus of investment income fell below $25 billion in 1983.
Eventually, the United States might find itself in
the position of having to earn a surplus in the
trade balance to cover a deficit on investment
income. Other things equal, the larger the net
debtor position we build up, the lower will be the
value of the dollar necessary in the long run to
generate the required trade balance.
In addition, I might say that, for one of the
richest countries in the world, it seems hardly
appropriate either to be borrowing currently on a
massive scale from the rest of the world or to be
a net debtor to it.
The external deficit also has a strong bearing
on the future of the dollar. I have noted the
severe appreciation the dollar has experienced
against a number of currencies, which has been
one—but only one—of the reasons for the trade
deficit. As the United States continues to borrow
abroad and moves toward net debtor status,
causing the rest of the world to hold ever larger
amounts of dollar-denominated assets, the good
acceptance that our currency has had in the
world may wear out. Nobody can predict the
timing, but in the longer run it seems probable
that the dollar-depressing effect of the external
deficit will begin to overwhelm the dollar-supporting effect of higher interest rates.
I do not believe, therefore, that the current
value of the dollar is sustainable, although it is
impossible to predict the sequence or timing of
events that will bring it down. If the dollar does
decline substantially while the budget deficit
remains unchanged, the external deficit will,
with a lag, also decline. That would reduce, in a
sense, the magnitude of the problem that this
committee is addressing. It would also, however,
intensify other problems created by the budget
deficit. With a return of the external sector
toward balance, the foreign financing of the
budget deficit would cease. It would have to be
financed entirely at home, absorbing a still higher
fraction of scarce available savings, thereby raising interest rates. The "crowding out" resulting
212
Federal Reserve Bulletin • March 1984
from the budget deficit, which now goes in part
against the foreign-trade-related sectors of the
U.S. economy and in part only against other
sectors of the economy, would then be directed
fully against the other sectors. This development
needs to be emphasized to make clear that a
reduction or ending of the external deficit, without a reduction in the budget deficit, only shifts
the impact of our nation's budget problems without resolving them.
The impacts of the external deficit and the
strong dollar have been felt by our manufacturing
industries, the agricultural sector, and some of
our services industries. The effects are adverse
not only for exports, but also for domestic import-competing sectors. On the whole, nevertheless, these impacts have been quite well absorbed. The American economy has expanded
strongly. This has offset some of the pressure of
mounting import competition deriving from a
strong dollar. Moreover, some of the industries
that have suffered from import competition are in
that condition more because of factors specific to
their industry than because of the high dollar.
Industries that have failed to invest and reduce
costs, that have not kept up with modern technology, and that in some cases have paid wages
far above the national average for production
workers, are bound to suffer even at a lower level
of the dollar.
Aside from such industry-specific problems, I
do not see the United States being deindustrialized. The combined domestic and foreign demand for U.S. industrial output has increased
since 1980. In particular, the industrial production index for manufacturing is currently almost
6.percent higher than its level at the end of 1980,
when the dollar began to appreciate. Employment in the manufacturing sector, on the other
hand, is currently about 4 percent below its level
at the end of 1980, partly reflecting relatively
rapid productivity growth in the manufacturing
sector, which historically has contributed to a
negative trend in the share of manufacturing
employment in total private employment.
My purpose in citing these statistics is to
counsel strongly against additional import restrictions at this juncture as a means of dealing
with the trade deficit, if the trade deficit is not
reduced either by a decline in the dollar or, in a
more fundamental sense, by a reduction in the
budget deficit. Thanks to the strong economic
recovery last year, our tradeable-goods industries as a group have not been severely injured on
balance. Their circumstances cannot justify additional import restrictions, except when foreign
competition is judged to be unfair as defined by
our trade acts.
The costs of import protection are well known.
The decision to protect one industry invariably
imposes costs elsewhere in the economy. It is
costly to other industries if foreign countries
retaliate against U.S. exports, or if import restrictions lead to higher dollar exchange rates
than would otherwise prevail, or if the prices
they must pay for inputs rise. Protection typically leads also to higher prices and less choice for
customers. An example of the consequences of
protection for consumers we now observe in the
recent very high profits of the automobile industry, which is protected by "voluntary" export
restraints in Japan. Finally, protected industries
typically delay making the adjustments that are
necessary if they are ever to stand on their own
feet. These costs should make us hesitant even to
reciprocate against foreign protectionist actions.
Retailiatory measures we take damage our own
interests, whatever they may do to foreigners.
Reducing the trade deficit by protectionist
methods without reducing the budget deficit
would not resolve our problems. It would certainly not ease the pressures on our export
industries, which, thanks to the discipline of
international competition, are bound to be
among our most efficient.
The right policy prescription for dealing with
the trade deficit, as I have stressed, is to reduce
the structural deficit in our federal budget. Such
action, of course, would not cure all the diverse
problems encountered in the various sectors of
our economy. But a substantial adjustment of the
budget toward balance, other things equal,
would lead to declines in real dollar interest
rates, a depreciation of the dollar in exchange
markets, and (with some lag) a reduction in the
external deficits. I hope that my remarks have
conveyed the message that the strong dollar and
large external deficits are partly symptoms,
themselves damaging, of large budget deficits. I
hope as well that the Congress and the administration will resist temptations to try to suppress
the symptoms without curing the disease.
•
213
Announcements
REVISED FEE SCHEDULE
FOR ACH
SERVICES
The Federal Reserve Board, on February 15,
1984, approved a revised fee schedule for its
automated clearinghouse (ACH) services and a
plan to reduce and price A C H float over the next
year. The revised A C H fee schedule becomes
effective March 29, 1984.
The revised fee schedule is shown in the
following tables:
Basic ACH transaction fees and nighttime deposit
surcharges (cents)
Inter-ACH
Transaction
IntraACH
Debits originated . . .
Debits received . . . .
Credits originated ..
Credits received . . . .
Nighttime
deposit
New
1
York surcharges
Unsorted
deposit
Presorted
deposit
1.5
.5
3.0
1.0
2.5
1.0
2.5
.5
6.0
.5
1.5
1.0
3.0
.5
3.0
.5
2.5
3.02
1. These fees would apply where the Federal Reserve does not
operate a commercial ACH.
2. Next-day settlement only.
Fixed ACH fees (dollars)
Deposit feesTape handling (per tape)
File processing (per
file)
3.00
1.00
Receiver handling fees1
Nonelectronic (per delivery)
Electronic2 (per transmission)
1.75
75
Telephone advice fees
Ten pieces of information
Each additional piece of information
2.50
05
1. Receiver handling fees will be assessed once a day per endpoint
when ACH transactions are delivered.
2. Electronic endpoints are defined as endpoints that receive ACH
transactions via data transmission or receivers that pick up ACH
transactions at the Federal Reserve.
In conjunction with implementing the revised
fee schedule, the Reserve Banks will offer two
new services—a presorted deposit option and
telephone advice for night-cycle transactions.
Under the presorted deposit option, A C H originators will be assessed lower fees or be able to
deposit transactions later if they sort transactions according to the receiving Federal Reserve
office.
Telephone advice service will be provided by
Reserve Banks to depository institutions whose
ACH night-cycle transactions cannot be delivered by ground transportation in time for settlement. The Reserve Banks will provide sufficient
information about transactions so that depository institutions will be able to post the transactions to their customers' accounts on the settlement date.
Besides the revised A C H fee schedule, the
Board also approved a plan to reduce and price
ACH float over the next year. A C H float is
generated whenever reserve or clearing accounts
of the originators of A C H transactions are credited or debited before the offsetting debit or credit
is posted to the receiving depository institution's
accounts. 1 In order to comply with the terms of
the Monetary Control Act, the Reserve Banks
proposed (1) to reduce A C H float to the extent
possible through operational improvements; (2)
to eliminate certain types of A C H float by modifying settlement procedures; and (3) to price the
remaining float.
A major factor in A C H float is delayed transmissions of interregional transactions between
Federal Reserve offices. By implementing operating improvements, the Reserve Banks expect
to reduce this float to approximately $7.0 million
by the fourth quarter of 1984. The annualized
value of this float is included in the cost base of
the 1984 fee schedule.
1. Originators of debit transactions are receivers of funds,
and their accounts are credited on the settlement date. If the
receiving depository institution's reserve or clearing account
is not debited on the settlement date, debit float is generated.
Originators of credit transactions are payors of funds, and
their accounts are debited on the settlement date. If the
receiving depository institution's reserve or clearing account
is not credited on the settlement date, credit float is generated.
214
Federal Reserve Bulletin • March 1984
The inability to process ACH paper return
items within the current availability schedules is
another source of ACH float. ACH float arising
from paper return items will be reduced by
changing the current availability schedule for
such interregional items from same-day to nextday settlement. Any residual float will be included in the A C H cost base the next time ACH fees
are set.
Midweek closing and nonstandard holiday
ACH float results from an inability to post ACH
transactions to the accounts of depository institutions that are closed during the middle of the
week (midweek closings) or on nonstandard holidays when the Reserve Bank is open. With
regard to midweek and nonstandard holiday
ACH float, the Board determined to follow the
same procedures that were recently adopted for
midweek and nonstandard holiday check float.
INCLUSION OF NEW
INSTITUTIONS
IN PROGRAM FOR ACCELERATED
CHECK COLLECTION
The Federal Reserve Board, on February 22,
1984, approved criteria for including certain depository institutions located outside Federal Reserve cities in the program to accelerate the
collection of checks that was adopted by the
Board in December 1982. The new criteria will
become effective April 23, 1984.
In December 1982, the Board adopted a twophased program to accelerate the collection of
checks. The first phase provided for later deposit
deadlines and a later uniform presentment or
dispatch time for checks drawn on institutions
located in cities with Federal Reserve offices
(city institutions). The second phase of the program calls for additional changes in deposit deadlines and presentment or dispatch time for
checks drawn on certain depository institutions
located outside Federal Reserve cities (noncity
institutions). This phase of the program is called
the High Dollar Group Sort (HDGS). 1 The purpose of HDGS is to speed up the collection of
checks drawn on such institutions as well as to
reduce the cost of collecting these checks.
1. A group sort is a service enabling a collecting bank to
deposit checks drawn on a limited, preselected group of
payor institutions.
The following selection criteria for the High
Dollar Group Sort are in effect:
• All presentment points with daily average
out-of-zone presentments from the Federal Reserve of $10 million or more will be included
initially.
• Presentment points with daily average outof-zone presentments of less than $10 million
may be added to the program on a case-by-case
basis when cost justified.
If it appears that the costs of any presentment
point's inclusion in the H D G S outweigh the
public benefits, that point may be dropped from
the program.
REVISIONS TO DATA ON THE MONEY
AND RESERVES
STOCK
Measures of the money stock and reserves data
were revised in February 1984. Data presented in
tables 1.10, 1.20, and 1.21 will reflect these
revisions beginning in the April 1984 B U L L E T I N .
Data on the money stock have been revised to
incorporate revisions to annual seasonal adjustment factors and new benchmarks and, for M3, a
change in definition. Seasonal factors have been
computed using the X - l l ARIMA procedure
adopted in 1982. The nontransaction portion of
M2 is now being seasonally adjusted as a
whole—instead of being built up from seasonally
adjusted savings and small time deposits—to
reduce distortions caused by substantial portfolio shifts arising from regulatory and financial
changes in recent years, especially the spread of
MMDAs in 1983. A similar procedure is being
used to seasonally adjust the remaining nontransaction balances in M3. All seasonal factors used
to construct seasonally adjusted monthly data for
M l , M2, and M3 are presented in table 1. Shown
in table 2 are monthly seasonal factors for selected components of the broader money stock measures—savings, and small and large time deposits at commercial banks and thrift institutions—
and seasonal factors for an experimental Ml
series, which are derived from a model-based
procedure applied to weekly data. Table 3 presents seasonal factors for the currency and deposit components of M l and savings and time
deposits at commercial banks.
Announcements
Deposits in the money stock
marked to recent call reports.
to deposits stem from changes
ing procedures implemented
have been benchFurther revisions
to System reportin 1983, related
215
largely to reduced reporting under the Garn-St
Germain Act of 1982. In addition, the currency
component was revised to reflect revisions to
figures on the amount of coin in circulation. The
1. Seasonal factors used to construct M l , M2, and M3, monthly, 1983-84
Year and month
Currency
Nonbank
travelers
checks
Transactions
deposits 1
Nontransactions components
Demand
deposits 1
M2
M3 only
1983—January
February
March
April
May
June
July
August
September
October
November
December
.9909
.9869
.9899
.9971
.9992
1.0017
1.0085
1.0020
.9968
.9979
1.0053
1.0173
.9424
.9480
.9520
.9536
.9798
1.0526
1.1155
1.1027
1.0564
1.0043
.9528
.9400
1.0173
.9757
.9841
1.0224
.9841
.9955
.9999
.9875
.9933
1.0028
1.0085
1.0276
1.0194
.9750
.9811
1.0110
.9836
.9951
1.0017
.9895
.9957
1.0049
1.0098
1.0323
.9990
.9999
1.0041
1.0021
1.0003
1.0014
1.0022
1.0012
.9982
.9995
.9972
.9936
1.0045
1.0082
1.0014
.9940
1.0007
.9939
.9887
1.0007
1.0005
.9974
1.0040
1.0083
1984—January
February
March
April
May
June
July
August
September
October
November
December
.9895
.9870
.9932
.9978
.9996
1.0048
1.0079
1.0036
.9989
.9971
1.0070
1.0183
.9414
.9470
.9515
.9541
.9814
1.0545
1.1157
1.1018
1.0562
1.0048
.9527
.9390
1.0179
.9767
.9848
1.0222
.9844
.9954
.9997
.9870
.9903
1.0024
1.0080
1.0278
1.0202
.9758
.9812
1.0105
.9838
.9949
1.0017
.9893
.9957
1.0046
1.0093
1.0326
.9994
1.0005
1.0047
1.0024
1.0006
1.0015
1.0019
1.0008
.9978
.9993
.9969
.9934
1.0040
1.0054
1.0006
.9940
1.0006
.9945
.9893
1.0012
1.0013
.9980
1.0042
1.0081
1. In constructing Ml the seasonal factors for "transactions deposits" are used to derive the seasonally adjusted sum of demand
deposits and other checkable deposits. The seasonal factors for
demand deposits are used to construct seasonally adjusted demand
deposits. Seasonally adjusted other checkable deposits is derived as
the difference between these two series.
2. Seasonal factors for selected deposit components of M2 and M3, monthly, 1983-84
Commercial bank deposits
Year and month
Thrift institution deposits
Memo: Experimental alternative
(model-based) seasonal factors for M1
Savings
Smalldenomination
time
Largedenomination
time
Savings
Smalldenomination
time
Largedenomination
time
Currency
Nonbank
travelers
checks
Transactions
deposits
—January
February
March
April
May
June
July
August
September
October
November
December
.9925
.9954
1.0056
1.0130
1.0116
1.0111
1.0129
1.0023
.9929
.9917
.9822
.9806
1.0027
1.0075
1.0081
1.0020
1.0008
1.0001
.9967
.9983
.9973
.9976
.9966
.9939
1.0118
1.0099
1.0037
.9892
.9918
.9888
.9849
.9991
1.0022
1.0020
1.0058
1.0153
.9906
.9912
.9996
1.0055
1.0047
1.0078
1.0125
1.0015
.9961
.9998
.9950
.9904
1.0035
1.0042
1.0038
1.0041
1.0022
1.0007
.9995
.9967
.9958
.9982
.9971
.9946
.9969
.9967
.9906
.9890
.9962
.9909
.9909
1.0016
1.0120
1.0203
1.0174
1.0035
.9928
.9879
.9918
.9963
1.0000
1.0035
1.0061
1.0037
.9987
.9982
1.0073
1.0169
.9412
.9476
.9570
.9599
.9786
1.0423
1.1110
1.1035
1.0601
1.0094
.9595
.9471
1.0203
.9755
.9822
1.0174
.9797
.9954
.9991
.9892
.9990
1.0051
1.0112
1.0309
—January
February
March
April
May
June
July
August
September
October
November
December
.9934
.9986
1.0103
1.0146
1.0132
1.0131
1.0123
1.0004
.9906
.9892
.9809
.9791
1.0023
1.0073
1.0072
1.0015
.9999
.9992
.9971
.9993
.9984
.9983
.9968
.9936
1.0095
1.0061
1.0013
.9888
.9911
.9903
.9871
1.0012
1.0036
1.0034
1.0059
1.0145
.9914
.9932
1.0022
1.0071
1.0060
1.0098
1.0121
.9996
.9936
.9982
.9939
.9901
1.0035
1.0042
1.0038
1.0041
1.0022
1.0007
.9995
.9967
.9958
.9982
.9971
.9946
.9947
.9933
.9888
.9890
.9958
.9906
.9908
1.0021
1.0131
1.0214
1.0194
1.0047
.9932
.9884
.9915
.9960
1.0006
1.0032
1.0062
1.0038
.9979
.9993
1.0067
1.0168
.9412
.9477
.9570
.9599
.9799
1.0433
1.1117
1.1029
1.0599
1.0087
.9596
.9472
1.0201
.9764
.9822
1.0169
.9806
.9946
.9989
.9897
.9984
1.0063
1.0109
1.0293
216
Federal Reserve Bulletin • March 1984
3. Seasonal factors for currency and deposit components of Ml and selected commercial bank components of
M2 and M3, weekly, December 1983-December 1984
Commercial bank deposits
Week ending
Currency
Transactions
deposits 1
Demand
deposits 1
Savings
Smalldenomination
time
Largedenomination
time
1983—December
5
12
19
26
1.0090
1.0210
1.0197
1.0260
1.0210
1.0260
1.0280
1.0130
1.0240
1.0280
1.0320
1.0145
.9792
.9808
.9815
.9822
.9926
.9918
.9935
.9962
1.0153
1.0149
1.0130
1.0133
1984—January
2
9
16
23
30
1.0050
1.0050
.9930
.9840
.9740
1.0530
1.0690
1.0375
.9950
.9640
1.0750
1.0680
1.0360
.9900
.9720
.9808
.9928
.9946
.9936
.9935
.9959
.9983
1.0021
1.0040
1.0048
1.0197
1.0139
1.0072
1.0048
1.0075
February
6
13
20
27
.9880
.9905
.9885
.9785
.9920
.9810
.9690
.9610
.9910
.9820
.9640
.9630
.9972
.9990
.9986
.9994
1.0069
1.0071
1.0073
1.0066
1.0080
1.0070
1.0046
1.0051
March
5
12
19
26
.9935
.9980
.9933
.9884
.9955
.9880
.9850
.9620
.9880
.9860
.9840
.9600
1.0045
1.0085
1.0099
1.0111
1.0083
1.0080
1.0071
1.0065
1.0041
1.0008
.9984
1.0011
April
2
9
16
23
30
.9925
1.0080
1.0009
.9950
.9880
1.0000
1.0310
1.0400
1.0300
.9920
.9955
1.0239
1.0300
1.0080
.9850
1.0163
1.0201
1.0166
1.0123
1.0107
1.0043
1.0025
1.0021
1.0015
1.0014
1.0015
.9946
.9887
.9855
.9840
May
7
14
21
28
1.0030
1.0018
.9975
.9930
.9990
.9930
.9770
.9580
.9930
.9930
.9800
.9610
1.0121
1.0132
1.0132
1.0125
1.0000
1.0000
1.0000
.9998
.9892
.9894
.9912
.9933
June
4
11
18
25
1.0030
1.0110
1.0050
.9975
1.0030
1.0050
1.0050
.9710
1.0010
1.0040
1.0040
.9740
1.0153
1.0160
1.0119
1.0092
1.0003
.9997
.9992
.9987
.9933
.9915
.9886
.9886
July
2
9
16
23
30
1.0050
1.0180
1.0106
1.0045
.9970
.9980
1.0220
1.0120
.9870
.9780
.9970
1.0228
1.0160
.9860
.9850
1.0136
1.0159
1.0143
1.0111
1.0071
.9971
.9968
.9968
.9970
.9973
.9892
.9860
.9847
.9861
.9894
August
6
13
20
27
1.0080
1.0100
1.0043
.9930
.9990
.9980
.9860
.9650
.9990
1.0030
.9870
.9670
1.0048
1.0029
.99%
.9964
.9985
.9990
.9994
.9996
.9976
.9996
1.0002
1.0025
September 3
10
17
24
1.0010
1.0100
1.0008
.9940
.9920
1.0065
1.0050
.9750
.9960
1.0110
1.0100
.9770
.9945
.9931
.9906
.9884
.9979
.9981
.9984
.9986
1.0069
1.0045
1.0018
1.0034
.9870
1.0065
.9850
1.0170
1.0200
.9980
.9845
.9911
.9937
.9918
.9878
.9838
.9968
.9970
.9978
.9986
.9987
1.0051
1.0038
1.0021
1.0022
1.0045
1
8
15
22
29
1.0000
.9951
.9870
.9850
1.0150
1.0160
.9955
.9840
November 5
12
19
26
1.0045
1.0115
1.0072
1.0045
1.0150
1.0200
1.0100
.9850
1.0160
1.0170
1.0130
.9910
.9838
.9831
.9809
.9791
.9982
.9980
.9976
.9966
1.0007
1.0032
1.0054
1.0084
December
1.0050
1.0220
1.0200
1.0260
1.0090
1.0150
1.0260
1.0290
1.0170
1.0450
1.0164
1.0240
1.0320
1.0250
1.0560
.9776
.9781
.9782
.9795
.9809
.9935
.9922
.9927
.9949
.9966
1.0145
1.0149
1.0133
1.0128
1.0145
October
3
10
17
24
31
1. In constructing Ml the seasonal factors for "transactions deposits" are used to derive the seasonally adjusted sum of demand
deposits and other checkable deposits. The seasonal factors for
demand deposits are used to construct seasonally adjusted demand
deposits. Seasonally adjusted other checkable deposits is derived as
the difference between these two series.
Announcements
net impact of these revisions was to raise the
levels and boost the growth rates of each of the
aggregates in 1983.
The definition of M3 has been changed to
include term Eurodollars held by U.S. residents
in Canada and the United Kingdom, and at
foreign branches of U.S. banks elsewhere. Term
Eurodollars had been included only in the broad
measure of liquid assets, L, owing to lags in data
availability; a recent reporting change provides
data on term Eurodollars on a schedule similar to
that for other components of M3.
Aggregate reserves and the monetary base
have been revised to incorporate annual revisions to seasonal adjustment factors and, beginning with February 1984, the conversion to contemporaneous reserve requirements (CRR).
Revised historical data on the money stock,
including revised weekly data beginning in 1975
for weeks ending on Monday (to conform to
reporting periods for deposits under CRR) and
monthly data beginning in 1959, are available on
request from the Board of Governors of the
Federal Reserve System, Banking Section,
Washington, D.C. 20551. Revised monthly and
weekly historical data on reserves and the monetary base are also available on request from the
same source.
DELAYED DISBURSEMENT
PRACTICES
The Federal Reserve Board announced that its
Consumer Advisory Council met on March 14
and 15, in sessions open to the public.
Delayed disbursement consists of arrangements offered by depository institutions that are
designed to delay the collection and final settlement of checks. Users of delayed disbursement
arrangements draw checks on institutions located substantial distances from the payee or on
institutions located outside Federal Reserve cities when alternate and more efficient payment
arrangements are available.
The Board expressed concern over delayed
disbursement practices because they deny
prompt access to funds and increase the risk of
loss to consumers, businesses, and others. Also,
the increase in delayed disbursement practices
had reduced the efficiency of the check collec
217
tion system because of the higher processing and
transportation costs to collect items, increased
incidence of delayed funds availability, and higher processing and transportation costs for returned items. The Board is therefore encouraging
and requesting the banking industry to seek
further improvements in check collection and
funds availability and not to offer delayed disbursement arrangements.
NEW MEMBERS APPOINTED TO THRIFT
INSTITUTIONS ADVISORY
COUNCIL
The Federal Reserve Board, on February 14,
1984, announced the appointment of four new
members to its Thrift Institutions Advisory
Council and designated Thomas R. Bomar, President, AmeriFirst Federal Savings and Loan Association, Miami, Florida, as President of the
Council for the current year. Richard H. Deihl,
Chairman of the Board and Chief Executive
Officer, Home Savings of America, Los Angeles,
California, has been designated Vice President of
the Council.
The Council is an advisory group made up of
eleven representatives from thrift institutions.
The panel was established by the Board in 1980
and includes savings and loan, mutual savings
bank, and credit union representatives. The
Council meets at least four times each year with
the Board of Governors to discuss developments
relating to thrift institutions, the housing industry, mortgage finance, and certain regulatory
issues.
The newly appointed members to the Council,
in addition to Mr. Deihl, are the following:
John T. Morgan, Chairman and Chief Executive Officer, American Savings Bank of New
York, New York, New York; Sarah R. Wallace,
President, First Federal Savings and Loan Association of Newark, Newark, Ohio; and J. Michael Cornwall, Chairman of the Board and
Chief Executive Officer, First Texas Savings
Association, Dallas, Texas.
Those reappointed to the Council, in addition
to Mr. Bomar, are the following:
James A. Aliber, Chairman and Chief Executive Officer, First Federal of Michigan, Detroit,
Michigan; Gene R. Artemenko, President, Unit-
218
Federal Reserve Bulletin • March 1984
ed Airlines Employees' Credit Union, Chicago,
Illinois; John R. Eppinger, President and Chief
Executive Officer, Main Line Federal Savings
and Loan Association, Villanova, Pennsylvania;
Norman M. Jones, President, Metropolitan Federal Savings and Loan Association, Fargo, North
Dakota; Robert R. Masterton, President, The
One Maine Savings Bank, Portland, Maine; and
Fred A. Parker, President, Heritage Federal Savings and Loan Association, Monroe, North Carolina.
CONSUMER ADVISORY
COUNCIL
MEETING
The Federal Reserve Board announced that its
Consumer Advisory Council met on March 14
and 15, in sessions open to the public.
The Council, with 30 members who represent
a broad range of consumer and creditor interests,
advises the Board on the exercise of the Board's
responsibilities under the Consumer Credit Protection Act and on other matters on which the
Board seeks its advice.
PROPOSED
ACTIONS
The Federal Reserve Board, on February 17,
1984, proposed that the federal financial institution regulators issue a joint policy statement to
encourage institutions to disclose to their customers their practices regarding delayed availability of funds.
The Federal Reserve Board, on March 2, 1984,
also proposed for public comment a list of nine
nonbanking activities that, if adopted, would be
permissible activities for bank holding companies. Comment should be submitted to the Board
by May 2.
Some of the activities proposed for inclusion in
the Board's Regulation Y have already been
approved in individual cases. Others are being
proposed for the first time.
In addition, the Federal Reserve Board has
extended, to March 30, the comment period on
certain proposals related to Regulation E (Electronic Fund Transfers) and Z (Truth in Lending).
CHANGES IN BOARD
STAFF
The following changes have occurred in the
official staff in the Division of Banking Supervision and Regulation.
Robert A. Jacobsen, Assistant Director, retired, effective January 21, 1984.
Thomas A. Sidman, Assistant Director, retired, effective January 28, 1984.
Samuel H. Talley, Assistant Director, resigned, effective February 10, 1984.
SYSTEM
MEMBERSHIP:
ADMISSION OF STATE BANKS
The following banks were admitted to membership in the Federal Reserve System during the
period February 10 through March 10, 1984:
Alabama
Montgomery
Arizona
Phoenix
California
Fremont
Pleasanton
Florida
Brandon
Montana
Ronan
Pennsylvania
Philadelphia
Texas
Fort Worth
Colonial Bank
of Montgomery
Commercial State Bank
Commercial Bank of Fremont
Bank of Pleasanton
Merchant Bank of Florida
Valley Bank of Ronan
William Penn Bank
Bank of Commerce
- F o s s i l Creek
219
Legal Developments
AMENDMENTS
TO REGULATION
J
The Board has approved an amendment to Subpart A
of Regulation J, (12 CFR Part 210) governing the
collection of checks and other items by Reserve
Banks, to permit a Reserve Bank to charge a paying
bank for checks made available to it by a Reserve
Bank on a weekday that is a banking day for the
Reserve Bank but where the paying bank is regularly
closed.
Effective April 2, 1984, the Board amends paragraph
(a) in § 210.9 of Regulation J by inserting "(1)" after
"(a) Cash items.", redesignating subparagraphs (1),
(2) and (3) as (i), (ii) and (iii) respectively, designating
the undesignated paragraph following subparagraph
(iii) as "(2)" and revising paragraph (2) of section
210.9 to read as follows:
Part 210—Collection
of Checks and Other
Items and Wire Transfer of Funds
Section 210.9—Payment
(a) Cash items.
*
*
*
^ ***
(iii) * * *
(2) The proceeds of any payment shall be available
to the Reserve Bank by the close of the Reserve
Bank's banking day on the banking day of receipt of
the item by the paying bank. If the banking day of
receipt is not a banking day for the Reserve Bank,
payment shall be made on the next day that is a
banking day for the Reserve Bank by the close of the
Reserve Bank's banking day. A paying bank that
closes regularly on a weekday which is a banking
day for the Reserve Bank shall either pay on that
day by the close of the Reserve Bank's banking day
for cash items that the Reserve Bank makes available to the paying bank on that day, or compensate
the Reserve Bank for the value of the float associated with the items in accordance with procedures
provided in its Reserve Bank's operating circular; in
such circumstances, the paying bank is not considered to receive the item until its next banking day.
BANK HOLDING COMPANY, BANK MERGER, AND
BANK SERVICES CORPORATION ORDERS ISSUED
BY THE BOARD OF GOVERNORS
Orders Issued Under Section 3 of Bank
Company Act
Holding
Bank of Boston Corporation,
Boston, Massachusetts
Order Approving
Company
the Acquisition
of a Bank
Holding
Bank of Boston Corporation, Boston, Massachusetts,
a bank holding company within the meaning of the
Bank Holding Company Act of 1956, as amended
("Act"), has applied for the Board's approval under
section 3 of the Act (12 U.S.C. § 1842) to acquire
indirectly 100 percent of the shares of the successor by
merger to Casco-Northern Corporation, Portland,
Maine (Company). 1 As a result of this transaction,
Applicant would acquire Company's subsidiary bank,
Casco Bank & Trust Company, Portland, Maine.
Notice of the applications, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing comments has expired, and the Board
has considered the applications and all comments
received in light of the factors set forth in section 3(c)
of the Act (12 U.S.C. § 1842(c)).
Applicant, with nine banking subsidiaries, has consolidated assets of $18.7 billion and total domestic
deposits of $5.8 billion. 2 It is the largest banking
organization in Massachusetts. Upon acquisition of
Company, which has total assets of $723.7 million and
total domestic deposits of $631 million, Applicant
would control the second largest banking organization
in Maine and 17.8 percent of the total deposits in
commercial banks in the state.
1. Applicant has applied under section 3(a)(1) of the Act, (12
U.S.C. § 1842(a)(1)) for approval to merge its wholly-owned inactive
subsidiary, First of Boston Holding Corporation, Boston, Massachusetts, (FBHC) with Company thereby causing FBHC to become a
bank holding company. Applicant has also applied under section
3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to acquire Company at the
time it merges with FBHC. FBHC is of no significance except as a
means to facilitate the acquisition of voting shares of Company by
Applicant.
2. All banking data are as of September 30, 1983.
220 Federal Reserve Bulletin • March 1984
Section 3(d) of the Act (12 U.S.C. § 1842(d)) prohibits the Board from approving any application by a bank
holding company to acquire any bank located outside
of the state in which operations of the bank holding
company's subsidiaries are principally conducted, unless such acquisition is "specifically authorized by the
statute laws of the state in which such bank is located,
by language to that effect and not merely by implication." Prior to February 7,1984, the statute laws of the
state of Maine authorized the acquisition of a banking
institution in Maine by a bank holding company that
controls a bank located in another state, if that other
state authorizes the acquisition of a banking institution
in that state by a Maine bank holding company under
terms no more restrictive than those imposed under
Maine law. On February 7, 1984, the Maine law was
amended to eliminate the reciprocity requirement. 3
Therefore, Maine law now permits an out-of-state
bank holding company to acquire a bank in Maine
without prior consideration of the nature of the banking laws of the acquiring company's state. Applicant,
an out-of-state bank holding company within the
meaning of the Maine statute, is eligible to acquire a
bank holding company in Maine. Based on the foregoing, the Board has determined that the proposed
acquisition conforms with Maine law and is expressly
authorized by the statute laws of Maine. The Board
believes that statutes such as Maine's are fully consistent with section 3(d) of the Act and provide a desirable means for creating a national market in banking
services through state action and without unnecessary
restrictions on commerce in financial services across
state lines.
Company's banking subsidiaries operate in 14 markets in Maine. Consummation of this transaction
would not eliminate any existing competition in commercial banking inasmuch as none of Applicant's
subsidiary banks operates in Maine. Certain of Applicant's nonbanking subsidiaries compete with Company's banks in the provision of nonbanking services,
including leasing, data processing, floor planning and
inventory financing. Applicant provides these services
nationwide and Company provides these services only
in the state of Maine. Within the state of Maine, both
Applicant and Company engage in these activities to a
limited extent, and their respective market shares are
small. Thus, the Board concludes that the amount of
existing competition in these services that would be
eliminated by this proposal is not significant.
The Board has considered the effects of this proposal on probable future competition and has also exam-
3. Me. Rev. Stat. Ann. tit. 9-B, § 1013 sub. 2 (As amended,
February 7, 1984).
ined the proposal in light of its proposed guidelines for
assessing the competitive effects of market extension
mergers or acquisitions. 4 In evaluating the effects of a
proposal on probable future competition, the Board
considers market concentration, the number of probable future entrants into the market, the size of the bank
to be acquired, and the attractiveness of the market for
entry on a de novo or foothold basis absent approval of
the acquisition. After consideration of these factors in
the context of the specific facts of this case, the Board
concludes that consummation of this proposal would
not have any significant adverse effects on probable
future competition in any relevant market.
There are a number of commercial banking organizations—including 20 commercial banking organizations in New York, six in Massachusetts, six in
Connecticut and four in Rhode Island—with assets of
over $1.0 billion each, that can be identified as probable future entrants into each of the 14 relevant markets
in which Company operates. On the basis of these and
other facts of record, the Board concludes that the
elimination of Applicant as a probable future entrant
into the 14 markets served by Company would not
have a substantial anticompetitive effect in those markets. Applicant's banking subsidiaries operate in 10
markets in Massachusetts and one in Rhode Island.
There are at least nine probable future entrants into
each of these markets and, in view of this and other
facts of record, the Board concludes that elimination
of Company as a probable future entrant into the
markets served by Applicant would not have a substantial anticompetitive effect in those markets.
The financial and managerial resources of Applicant
and Company are considered satisfactory and their
prospects appear favorable. Affiliation with Applicant
would enable Company's banking subsidiary to expand the scope and array of its services. New services
would include factoring, public finance and international banking. Company would also be in a position to
expand its commercial lending and secondary mortgage lending services. Accordingly, it is the Board's
judgment that the proposed transaction would be in
the public interest and that the application should be
approved.
Based on the foregoing and other facts of record, the
Board has determined that the applications under
section 3 should be and hereby are approved for the
4. "Proposed Policy Statement of the Board of Governors of the
Federal Reserve System for Assessing Competitive Factors under the
Bank Merger Act and the Bank Holding Company Act," 47 Federal
Register 9017 (March 3, 1982). Although the proposed policy statement has not been adopted by the Board, the Board is using the policy
guidelines in its analysis of the effects of a proposal on probable future
competition.
Legal Developments
reasons set forth above. The transaction shall not be
consummated before the thirtieth calendar day following the effective date of this Order or later than three
months after the effective date of this Order, unless
such period is extended by the Board or by the Federal
Reserve Bank of Boston, acting pursuant to delegated
authority.
By order of the Board of Governors, effective
February 28, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Teeters, and Gramley. Absent and
not voting: Governor Rice.
WILLIAM W . WILES,
[SEAL]
Secretary
of the
Board
Bootheel Bancorp,
Bernie, Missouri
Order Approving Formation of a Bank Holding
Company
Bootheel Bancorp, Bernie, Missouri, has applied for
the Board's approval under section 3(a)(1) of the Bank
Holding Company Act ("BHC Act") (12 U.S.C.
§ 1842(a)(1)) to form a bank holding company by
acquiring 99.3 percent of the voting shares of State
Bank of Bernie, Bernie, Missouri ("Bank").
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views has expired,
and the Board has considered the application and all
comments received in light of the factors set forth in
section 3(c) of the Act.
Applicant is a nonoperating Missouri corporation
organized for the purpose of becoming a bank holding
company by acquiring Bank, which holds deposits of
$16.6 million.1 Upon acquisition of Bank, Applicant
would control the 448th largest commercial banking
organization in Missouri and approximately 0.05 percent of total deposits in commercial banks in the state.
In light of the small share of the state's commercial
banking deposits that would be controlled by Applicant, the Board concludes that consummation of the
transaction would not have any serious adverse effects
on the concentration of banking resources in Missouri.
The proposal involves a restructuring of Bank's
ownership whereby one group of Bank's shareholders
1. All banking data are as of March 31, 1983.
221
("Belknap/Boeving Group") will form a corporation
to acquire the voting shares of Bank owned by them,
and an additional 18 percent of Bank's common stock
owned by another group of individuals ("Waller
Group"). As a result of the transaction, the Belknap/
Boeving Group will control the majority of the shares
of Bank through Applicant. The Belknap/Boeving
Group also controls two other banks in the Bernie/
Maiden banking market: Maiden State Bank, Maiden,
Missouri ("Maiden Bank"), and State Bank of Campbell, Campbell, Missouri ("Campbell Bank"). 2 In a
related action, the Belknap/Boeving will transfer its
shares of Maiden Bank to the Waller Group.
Bank is currently the third largest commercial banking organization in the Bernie/Malden banking market,
with total deposits of $16.6 million representing approximately 16.5 percent of total deposits in commercial banks in the market. Campbell Bank is the second
largest bank in the market, with total deposits of $16.7
million, representing approximately 16.6 percent of
total deposits in commercial banks in the market.
Maiden Bank is the largest Bank in the market with
total deposits of $39.5 million and controls 39.3 percent of the market's deposits. Together, the three
banks control 72.4 percent of the market's deposits.
Section 3(c) of the Act precludes the Board from
approving any proposed acquisition that may tend to
create a monopoly, substantially lessen competition,
or restrain trade in any part of the United States,
unless the Board finds that such anticompetitive effects are clearly outweighed by the convenience and
needs of the community to be served. In analyzing a
case under these standards where, as here, the principals of an applicant control another banking organization in the same market as the bank to be acquired, the
Board considers the competitive effects of the transaction whereby common control of the formerly competing institutions was established. 3
In 1980, Applicant's principals applied to form a
bank holding company through the acquisition of
Maiden Bank. 4 The Board reviewed the facts surrounding the original affiliation of Bank, Campbell
Bank, and Maiden Bank and concluded that the affiliation had eliminated significant competition in the
Bernie/Malden banking market. Accordingly, the
Board denied the application. In order to eliminate the
2. The Bernie/Malden banking market is approximated by the
southern portion of Stoddard County, the northern third of Dunklin
County, and western New Madrid County, all in Missouri.
3. Mid-Nebraska Bancshares, Inc., v. Board of Governors of the
Federal Reserve System, 627 F.2d 266 (D.C. Cir. 1980).
4. Semo
(1980).
Bancshares,
Inc.,
6 6 FEDERAL RESERVE BULLETIN 5 0 9
222
Federal Reserve Bulletin • March 1984
anticompetitive effects of the subject proposal, the
majority owners of Bank, Maiden Bank, and Campbell
Bank have decided to end the affiliation between
Maiden Bank and Bank and Campbell Bank. The
Waller Group will sell its interest in Bank to the
Belknap/Boeving Group and in return the Belknap/
Boeving Group will sell its interest in Maiden Bank to
the Waller Group. Maiden Bank, the largest bank in
the market, will be controlled solely by the Waller
Group. All director and management interlocks between Maiden Bank and the other banks will be
terminated. Thus, Maiden Bank will become an independent competitor of Bank and Campbell Bank. 5
Although the Belknap/Boeving Group will no longer
have any interest in Maiden Bank, the Belknap/Boeving Group will indirectly control 78.7 percent of Bank
and 96 percent of Campbell Bank. These two banks
will control 33.8 percent of the deposits of commercial
banks in the market. Although Applicant's principals
will still control a significant share of the market, the
proposal as a whole is procompetitive in that the
number of competitors in the market will increase
from four to five and the Herfindahl-Hirschman Index
(HHI) will decrease from 5540 to 2938. In addition, the
Board has considered that the banks have been
affiliated for over 40 years, and the affiliation did not
represent an attempt to evade the antitrust laws or the
Bank Holding Company Act. 6
After considering the facts of record, including the
long-term affiliation between the banks and the procompetitive effects of the divestiture, the Board concludes that competitive considerations are consistent
with approval of the application.
Where principals of an applicant are engaged in
operating a chain of banking organizations, the Board,
in addition to analyzing the one-bank holding company
proposal before it, also considers the entire chain and
analyzes the financial and managerial resources and
future prospects of the chain under the Board's Capital
Adequacy Guidelines. Based upon such analysis in
this case, the financial and managerial resources and
future prospects of Applicant, Bank and the chain
banking organization are consistent with approval.
Accordingly, it is the Board's judgment that the proposed acquisition is in the public interest and that the
application should be approved.
On the basis of the record, the application is approved for the reasons summarized above. The trans-
action shall not be consummated before the thirtieth
calendar day following the effective date of this Order
or later than three months after the effective date of
this Order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
St. Louis, acting pursuant to delegated authority.
By order of the Board of Governors, effective
February 7, 1984.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, Teeters, Rice, and Gramley. Absent
and not voting: Chairman Volcker.
[SEAL]
Associate
JAMES MCAFEE,
Secretary
of the
Board
Continental Bancshares, Inc.,
Dallas, Texas
Order
Approving
Formation
of a Bank
Continental Bancshares, Inc., Dallas, Texas, has applied for the Board's approval under section 3(a)(1)
of the Bank Holding Company Act (12 U.S.C.
§ 1842(a)(1)) to form a bank holding company by
acquiring all of the voting shares of Mockingbird
Bancshares, Inc. ("Mockingbird"), and, indirectly, its
subsidiary, Bank of Texas ("Texas Bank"), both of
Dallas, Texas; Wynnewood
Bancshares,
Inc.
("Wynnewood"), and, indirectly, its subsidiary,
Wynnewood Bank & Trust ("Wynnewood Bank"),
both of Dallas, Texas; and Bank of Arlington ("Arlington Bank"), Arlington, Texas.
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views has expired
and the Board has considered the application and all
comments received in light of the factors set forth in
section 3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant is a nonoperating corporation organized
for the purpose of acquiring Mockingbird, Texas
Bank, Wynnewood, Wynnewood Bank, and Arlington
Bank, which together hold deposits of $138.3 million.1
Upon consummation of this proposal, Applicant
would control the 51st largest banking organization in
Texas, representing less than two-tenths of one percent of the total deposits in commercial banks in the
state.
5. S e e Semo Bancshares,
Inc., 6 9 FEDERAL RESERVE BULLETIN
228 (1984).
6. Texas East Bancorp,
Inc., 6 9 FEDERAL RESERVE BULLETIN 6 3 6
(1983).
Holding
Company
1. All deposit data are as of December 31, 1982.
Legal Developments
Mockingbird, Wynnewood and Arlington Bank are
the 34th, 44th, and 33rd largest, respectively, of 113
banking organizations competing in the Dallas banking
market and together control approximately 0.5 percent
of the total deposits in commercial banks in that
market.2 This proposal represents a corporate restructuring whereby the principal of Mockingbird,
Wynnewood, and Arlington Bank would consolidate
his ownership of these institutions through the use of
Applicant, which is controlled by the same principal.
Applicant's principal is not a principal of any other
banking organization in the relevant market and consummation of the proposed transaction would not
have any significant adverse effects on the concentration of banking resources or on competition in any
relevant area. The Board concludes that competitive
considerations are consistent with approval of the
application.
The financial and managerial resources of Applicant, Mockingbird, Texas Bank, Wynnewood,
Wynnewood Bank, and Arlington Bank are generally
satisfactory and the future prospects for each appear
favorable, particularly in light of certain commitments
made by Applicant in connection with this application.
In its consideration of this application, the Board has
applied the capital standards for banking organizations
with total assets of $150 million or less. 3 While these
standards generally are applicable to small bank holding company formations with subsidiary bank assets
totalling approximately $150 million or less, the Board
has permitted larger bank holding company formations
to be evaluated under these standards if the Board
finds that circumstances warrant such an exception. 4
The Board, after reviewing all the facts of record, finds
that such circumstances exist in this case.
Approval of this application would perpetuate the
current management of Mockingbird, Wynnewood,
and Arlington Bank, which the Board finds in this
instance to be a substantial public benefit. Applicant's
principal acquired control of Texas Bank (in 1977) and
2. The relevant banking market is the Dallas banking market, which
consists of all of Dallas County and portions of Collin, Denton, Ellis,
Kaufman, Rockwell, and Tarrant Counties, Texas.
3. "Federal Reserve Board Policy Statement for Assessing Financial Factors in the Formation of Small One-Bank Holding Compan i e s , " 66 FEDERAL RESERVE BULLETIN 3 2 0 ( 1 9 8 0 ) ; F e d e r a l R e s e r v e
223
Wynnewood Bank (in 1978) when the future prospects
of these banks were uncertain due to their less than
satisfactory financial condition. Under the direction of
Applicant's principal, the condition of these two banks
has improved and their future prospects are favorable.
Moreover, the Board notes that the combined total
assets of the three banks at the time that Applicant's
principal acquired Arlington Bank in December 1982,
was only $150.6 million. 5 That acquisition was made in
contemplation of this proposal; the application, however, was not filed immediately due to the necessity of
first obtaining other regulatory approvals.
Accordingly, the Board finds that under these circumstances, in light of the improvements that Applicant's principal made in Texas Bank and Wynnewood
Bank, and given the fact that the combined banking
assets of the three banking organizations only slightly
exceeded $150 million at the time of the acquisition of
Arlington bank, it is appropriate to apply the standards
that would be applicable for small bank holding company formations involving banks with assets of less
than $150 million. In applying these standards, it is the
Board's opinion that banking factors are consistent
with approval of this application.
Although consummation of the proposal would effect no immediate changes in the banking services
offered by Bank, considerations relating to the convenience and needs of the community to be served are
consistent with approval of the application. Accordingly, the Board has determined that consummation of
the transaction would be in the public interest and that
the application should be approved.
On the basis of the record, the application is approved for the reasons summarized above. The transaction 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 by the Federal Reserve Bank of
Dallas, pursuant to delegated authority.
By order of the Board of Governors, effective
February 28, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Teeters, and Gramley. Absent and
not voting: Governor Rice.
WILLIAM W . WILES,
[SEAL]
Secretary
of the
Board
Regulatory Service 114-855. The Board also applies these guidelines to
bank holding company formations involving more than one bank
where the total combined assets of the banks do not exceed $150
million, see, "Capital Adequacy Guidelines," Joint Statement by
Federal Reserve Board and Comptroller of the Currency (December 17, 1981).
4 . Tulsa
Commerce
Bancshares,
Inc.,
68 FEDERAL RESERVE B U L -
LETIN 196 (1982), and The Union of Arkansas
FEDERAL RESERVE BULLETIN 6 5 9 (1980).
Corporation, 66
5. The combined total assets of the banking organizations to be
acquired by Applicant were approximately $177 million as of September 30, 1983.
224
Federal Reserve Bulletin • March 1984
Locust Grove Banshares, Inc.,
Locust Grove, Oklahoma
Order
Approving
Acquisition
of a
Bank
Locust Grove Banshares, Inc., Locust Grove, Oklahoma, a bank holding company within the meaning of
the Bank Holding Company Act, has applied for the
Board's approval under section 3(a)(3) of the Act
(12 U.S.C. § 1842(a)(3)) to acquire 93.9 percent of the
voting shares of Bank of Commerce, Chouteau, Oklahoma ("Bank").
Notice of the application, affording opportunity for
interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the Act.
Applicant controls one banking subsidiary in Oklahoma with total deposits of approximately $10.5 million, representing 0.04 percent of the total deposits in
commercial banks in the state. 1 Bank, with deposits of
$8.4 million, is one of the smallest banking organizations in Oklahoma, and controls 0.03 percent of the
total deposits in commercial banks in the state. Upon
consummation of this transaction, Applicant would
control 0.07 percent of the total deposits in commercial banks in the state. The Board concludes that
consummation of this transaction would have no significant effect on the concentration of banking resources in Oklahoma.
Both Applicant and Bank compete in the Mayes
County banking market.2 Bank is the fifth largest
banking organization in that market, controlling approximately 7.1 percent of the total deposits in commercial banks in the market. Applicant is the third
largest commercial banking organization in the market, controlling approximately 8.8 percent of the total
deposits in commercial banks in the market. Upon
consummation of this transaction, Applicant would
remain the third largest commercial banking organization in the market, and its share of the total deposits in
commercial banks in the market would increase to 15.9
percent.
The acquisition of Bank by Applicant would not
eliminate any existing competition between the two,
1. All banking data are as of December 31, 1982.
2. The Mayes County banking market is approximated by Mayes
County, Oklahoma, excluding the town of Langby.
since principals of Applicant acquired control of Bank
in March 1983. However, the Board has reviewed the
record to determine whether the affiliation between
Applicant and Bank resulted in any adverse effects on
competition in the Mayes County banking market.
While the affiliation eliminated some existing competition between Applicant and Bank, 3 based on the
record, particularly Bank's condition when it was
acquired by Applicant's principals, the Board does not
believe that the effects of the transaction on competition were so serious as to warrant denial of the
application.
The financial and managerial resources and future
prospects of Applicant, its subsidiary, and Bank are
regarded as generally satisfactory and their future
prospects appear favorable. While Applicant will incur
some debt in connection with the acquisition of Bank,
it appears that Applicant has resources to service the
debt through dividends from its existing subsidiary
bank, while maintaining adequate capital at both Bank
and the existing subsidiary. Accordingly, considerations relating to banking factors are consistent with
approval. Considerations relating to the convenience
and needs of the community to be served are also
consistent with approval of the application. Accordingly, the Board has determined that consummation of
the transaction would be consistent with the public
interest and that the application should be approved.
On the basis of the record, this application is approved for the reasons summarized above. The transaction 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 by the Federal Reserve Bank of
Kansas City, acting pursuant to delegated authority.
By order of the Board of Governors, effective
February 2, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Teeters, Rice, and Gramley.
[SEAL]
Associate
JAMES MCAFEE,
Secretary
of the
Board
3. Specifically, the Herfindahl-Hirschman Index ("HHI") of the
Mayes County banking market increased by 125 points to 2911 as a
result of the acquisition of Bank by Applicant's principals. Under the
Department of Justice Merger Guidelines, a market in which the postmerger HHI is over 1800 is considered highly concentrated and a
merger that produces an increase in excess of 50 points would
generally be subject to challenge by the Department. However, the
Department of Justice did not submit any comment or object to
consummation of the proposed transaction.
Legal Developments
NCNB Corporation,
Charlotte, North Carolina
Order
Approving
Acquisition
of Bank
Holding
Company
NCNB Corporation, Charlotte, North Carolina, a
bank holding company within the meaning of the Bank
Holding Company Act, has applied for the Board's
approval pursuant to section 3(a)(3) of the Act
(12 U.S.C. § 1842(a)(3)) to acquire Ellis Banking
Corporation, Bradenton, Florida, also a bank holding
company.
Notice of the application, affording opportunity for
interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the Act. (12 U.S.C. § 1842(c)).
On the basis of the record, the application is approved for the reasons set forth in the Board's statement, which will be released at a later date.
By order of the Board of Governors, effective
February 15, 1984.
Voting for this action: Chairman Volcker and Governors
Wallich, Partee, Rice, and Gramley. Voting against this
action: Governor Teeters. Absent and not voting: Governor
Martin.
JAMES MCAFEE,
[SEAL]
Associate
Secretary
of the
Board
Statement
By Board of Governors
of the
Federal
Reserve
System
Regarding
the Application
of
NCNB
Corporation
to Acquire
Ellis Banking
Corporation
By Order dated February 15, 1984, the Board approved the application of NCNB Corporation, Charlotte, North Carolina, pursuant to section 3(a)(3) of the
Bank Holding Company Act (12 U.S.C. § 1842(a)(3))
to acquire Ellis Banking Corporation, Bradenton,
Florida. In this Statement, the Board sets forth its
reasons for approving the application.1
Applicant, with two bank subsidiaries, has consolidated deposits of $6.8 billion. 2 It is the largest banking
organization in North Carolina controlling one bank
subsidiary with deposits of $4.8 billion, representing
20.7 percent of the total deposits in commercial banks
in that state. The Board has previously determined
that the statute laws of Florida expressly authorize
Applicant to acquire banks in Florida, and that such
acquisitions are consistent with the interstate banking
prohibition contained in section 3(d) of the Act, and
relevant state laws. 3
NCNB is the eighth largest banking organization in
Florida, controlling one bank subsidiary, with deposits
of $2.0 billion, representing approximately 3.7 percent
of the total deposits in commercial banks in Florida. 4
Upon acquisition of Ellis (deposits of $1.4 billion),
Applicant would control 6.3 percent of the total deposits in commercial banks in Florida and would become
the fourth largest banking organization in that state.
The Board has carefully considered the effects of the
proposal on the structure of banking in Florida and has
concluded that consummation of this transaction
would not significantly increase the concentration of
banking resources in that state.
Applicant and Ellis compete in 11 banking markets
in Florida. In eight of these markets, however, either
Applicant or Ellis or both do not have a significant
presence. Accordingly, the Board concludes that any
adverse effect on existing competition in these markets
would not be significant. 5 In three of these 11 markets,
Bradenton, New Port Richey and Sarasota, approval
of these applications would have a more significant
effect on existing competition between Applicant and
Ellis.
Ellis is the largest banking organization in the Bradenton banking market, controlling deposits of $185.6
million,6 representing 22.6 percent of the total deposits
in commercial banks in the market. 7 Applicant is the
ninth largest banking organization in the Bradenton
banking market, controlling deposits of $13.8 million,
representing 1.7 percent of the total deposits in commercial banks in the market. Upon acquisition of Ellis,
2. All banking data are as of June 30, 1983, unless otherwise
indicated.
3. NCNB
1. A number of comments on the application have been received
from minority shareholders of Ellis concerning the fairness of the offer
to minority shareholders. These commenters have essentially alleged
that the offer to minority shareholders of Ellis differs from that made
to the majority shareholders. Pursuant to the court's decision in
Western Bancshares Inc. v. Board of Governors, 480 F.2d 749 (10th
Cir. 1973), the Board may not deny applications under section 3 of the
Act solely because of an applicant's failure to extend substantially
equal purchase offers to minority shareholders.
225
Corporation,
6 8 FEDERAL RESERVE BULLETIN 54 (1982).
4. Pursuant to Board approval, Applicant has previously acquired
three banking organizations in Florida: First National Bank of Lake
City; Gulfstream Banks, Inc.; and Exchange Bancorporation, Inc.
Applicant has since consolidated these banks under the name of
NCNB National Bank of Florida.
5. These markets are the East Pasco County, East Polk County,
Fort Myers, Orlando, Pinnellas County, Tampa, Venice, and West
Polk County banking markets.
6. Market data are as of June 30, 1982.
7. The Bradenton banking market is defined as all of Manatee
County, Florida.
226
Federal Reserve Bulletin • March 1984
Applicant would become the largest banking organization in the market, controlling 24.3 percent of the total
deposits in commercial banks in the market.
While consummation of the transaction would eliminate some existing competition in the Bradenton banking market, the Board believes that a number of factors
mitigate the anticompetitive effects of the acquisition.
Upon consummation, the Herfindahl-Hirschman Index ("HHI") would increase by only 76 points to 1784
and the market would remain moderately concentrated
as measured by this index. 8 In addition, eight banking
organizations would remain in the market after consummation, including several statewide banking organizations.
The Board also has considered the influence of thrift
institutions in evaluating the competitive effects of this
proposal. 9 In this market, thrift institutions control
almost 50 percent of the combined total deposits of
banks and thrifts in the market. The record indicates
that thrift institutions already exert a considerable
competitive influence in the market as providers of
consumer transaction accounts and consumer loans,
and that two of the market's thrifts are substantially
larger than any of the market's banking organizations.
In addition, eight of the ten thrifts in this market offer
commercial checking accounts and nine of them engage in the business of making commercial loans. At
the same time, the record indicates that the portfolios
of commercial banks in the market resemble the
portfolios of thrift institutions in the market. For
example, on average, 52 percent of the loan portfolios
of the commercial banks in the market are in real
estate loans, while only 15 percent are in commercial
and industrial loans. 10 In view of these facts, the Board
has determined that consummation of this proposal
would not have a significantly adverse effect on existing competition in the Bradenton banking market.
Ellis is the second largest of seven banking organizations in the New Port Richey banking market, with
8. Under the United States Justice Department Merger Guidelines
(June 14, 1982), a market in which the post-merger HHI is between
1000 and 1800 is considered moderately concentrated. In such markets, the Department is not likely to challenge a merger that produces
an increase in the HHI of less than 100 points, as in this case.
9. The Board has previously determined that thrift institutions have
become or at least have the potential to become, major competitors of
commercial banks. Florida National Banks of Florida, Inc. (Royal
Trust Bank Corp.), 70 FEDERAL RESERVE BULLETIN 147 (1984) (Press
Release dated January 25, 1984); Sun Banks, Inc. (Flagship Banks,
Inc.), 69 FEDERAL RESERVE BULLETIN 934 (1983); First Tennessee
National Corporation, 69 FEDERAL RESERVE BULLETIN 298 (1983).
10. If thrift institutions in the Bradenton market are included in the
market analysis, Applicant's market share would be 0.9 percent, Ellis'
would be 11.4 percent and the HHI would increase by only 19 points
to 1198.
deposits of $191.3 million, representing 30.5 percent of
the total deposits in commercial banks in the market.11
Applicant is the fifth largest banking organization in
the market, with deposits of $37.2 million, representing 5.9 percent of the total deposits in commercial
banks in the market. Upon consummation of this
proposal, Applicant would become the largest banking
organization in the market, controlling 36.4 percent of
the total deposits in the market and the HHI would
increase 362 points to 2772.
Ellis is the largest banking organization in the Sarasota banking market, with deposits of $282.4 million,
representing 31.5 percent of the total deposits in
commercial banks in the market. 12 Applicant is the
eighth largest banking organization in the market with
deposits of $23.3 million, representing 2.6 percent of
the total deposits in commercial banks in the market.
Upon consummation of the proposed transaction, the
HHI would increase 164 points to 2195.
The Board views the competitive effects of consummation in the New Port Richey and Sarasota banking
markets with concern and, absent the substantial
presence of thrifts in these markets, believes that
competitive factors would be substantially adverse. In
evaluating the competitive effect of thrifts in these
markets, the Board has considered their large share of
total deposits in these markets, the fact that thrifts are
the largest depository institutions in both markets, the
similarity in the services offered by thrifts and banks,
and that the portfolios of the banks in these markets
indicate they are in the same lines of business as the
thrifts.13
In the New Port Richey market, thrift institutions
have a substantial presence, controlling almost 62
percent of the total deposits in the market. Moreover,
two of the market's thrifts are substantially larger than
any of the market's commercial banking organizations. The Board has also considered the significant
extent to which thrifts compete with commercial
banks in the New Port Richey market as reflected in
the similar asset and liability composition of the portfolios of banks and thrifts in this market. For example,
11. The New Port Richey banking market is approximated by the
western portion of Pasco County including the communities of Holiday, Hudson, and New Port Richey.
12. The Sarasota banking market is approximated by Sarasota
County excluding the southern portions of the county.
13. Under the provisions of the Thrift Institutions Restructuring
Act, Title III of the Garn-St Germain Depository Institutions Act of
1982, 96 Stat. 1469, 1499-1500, the commercial lending powers of
federally chartered thrift institutions were greatly expanded. Similarly, in 1980, Florida law was substantially amended to expand the
commercial lending and other asset powers of state chartered thrift
institutions. FLA. STAT. ANN. § 665 (West Supp. 1982).
Legal Developments
13 of the market's 16 thrifts offer commercial checking
accounts and 12 of them offer commercial loans. In
this regard, the record indicates that thrifts hold more
than 10 percent of the commercial loans made by
depository institutions in the market.14 The record also
indicates that the orientation of commercial banks in
the market is similar to that of the thrifts. For example,
on average, commercial banks have over 70 percent of
their portfolios in real estate loans and only 11 percent
of their loans in commercial and industrial loans.
Similarly, thrift institutions have approximately 82
percent of their portfolios in real estate loans. 15
The elimination of existing competition in the Sarasota market is similar cause for concern. However, the
Board is persuaded that, as in the case of the New Port
Richey market, the substantial presence of thrifts in
the Sarasota market and the similarity of the portfolios
of the thrifts and commercial banks mitigate this
concern. There are nine thrifts in the Sarasota banking
market, which together control almost 54 percent of
the total deposits in the market, and two of these
thrifts are substantially larger than any of the commercial banks in the market. Moreover, thrifts are significant competitors of banks in the Sarasota market. For
example, each of the 10 thrifts in the market offers
consumer checking accounts and all but one offer
commercial checking accounts. In addition, all market
thrifts offer NOW accounts and some have as much as
25 percent of their deposits in NOW accounts. Moreover, thrifts hold at least 10 percent of the commercial
loans made by depository institutions in the market.
Finally, another important factor in weighing thrifts in
the competitive analysis of the Sarasota banking market is the similarity of the portfolios of commercial
banks in the market to those of the market's thrifts. 16
Based on the similar orientation of thrift and commercial bank organizations in the market, the amount of
thrift participation in commercial bank activities appears particularly significant.17
14. Thrifts only recently acquired their expanded commercial bank
powers. Thus, this figure may not reflect the true extent to which
thrifts are actually competing with commercial banks in these product
lines.
15. If the thrift institutions in the New Port Richey banking market
are included in the market analysis, Applicant's market share of total
market deposits would be only 2.3 percent and Ellis' would be 11.7
percent. Moreover, the HHI would be only 1163 and, upon consummation of the proposed transaction, would increase by only 53 points.
16. For example, on average, commercial banks have 64 percent of
their loan portfolios in real estate loans, while only 14 percent are in
commercial and industrial loans. While thrifts have a somewhat larger
percentage, the record indicates that both thrifts and banks have a
similar orientation toward real estate lending.
17. If the thrift institutions in the Sarasota banking market are
included in the market analysis, the HHI would rise by 35 points to
1524, Applicant's share of the total deposits in the market would be
14.6 percent, and Ellis' share would be 1.2 percent.
227
Based on the facts that in both the New Port Richey
and Sarasota markets thrifts hold over 50 percent of
market deposits and provide substantial competition
to the banks in these markets, the Board believes it is
appropriate to take thrifts into account in evaluating
the competitive effects of the proposed acquisition in
these markets. In fact, even considering only 50 percent of the deposits held by thrifts in these markets,
the market analysis indicates that concentration ratios
would be acceptable. Accordingly, in view of the large
share of these markets' deposits held by thrifts, their
large size, and the similarity of the services and
portfolios of commercial banks and thrifts in these
markets, the Board has determined that consummation of this transaction would not have a significantly
adverse effect on existing competition in these markets.
The Board has also considered the effect of consummation of this proposal on probable future competition. 18 There are sixteen banking markets in which
either Applicant or Ellis, but not both, compete. In
evaluating the effects of a proposal on probable future
competition, the Board considers market concentration, the number of probable future entrants into the
market, the size of the bank to be acquired and the
attractiveness of the market for entry on a de novo or
foothold basis absent approval of the acquisition. In
none of these markets would the proposed acquisition
require intensive analysis under the Board's proposed
guidelines. After consideration of these factors in the
context of the specific facts of this case, the Board
concludes that consummation of this proposal would
not have any significant adverse effects on probable
future competition in any relevant market.
Applicant has a number of nonbank subsidiaries
engaged in consumer and commercial finance and
leasing activities which compete in a number of the
markets served by bank subsidiaries of Ellis. Although
Ellis' subsidiaries compete in the relevant product
markets, in each market, both Ellis and Applicant
have relatively small market shares. Moreover, with
respect to each market, there are numerous alternatives. Thus, the amount of existing competition that
would be eliminated in these markets as a result of
consummation is not significant.
The financial and managerial resources and future
prospects of Applicant, Ellis and their subsidiaries are
18. "Proposed Policy Statement of the Board of Governors of the
Federal Reserve System for Assessing Competitive Factors under the
Bank Merger Act and the Bank Holding Company Act," 47 Federal
Register 9017 (March 3, 1982). Although the proposed policy statement has not been adopted by the Board, the Board is using the policy
guidelines in its analysis of the effects of a proposal on probable future
competition.
228
Federal Reserve Bulletin • March 1984
considered satisfactory. Affiliation with Applicant
would enable Ellis' banking subsidiaries to expand the
scope of their banking services to include a full range
of consumer loans, credit and debit card services,
factoring, accounts receivable financing, leasing, trust
services and international banking services. In addition, affiliation would enable Ellis' banking subsidiaries to offer credit life, accident and health insurance at
lower rates. Consequently, considerations relating to
the convenience and needs of the communities to be
served lend slight weight toward approval of the
application and outweigh any anticompetitive effects
that may result from consummation of this proposal.
Based upon the foregoing and all the facts of record, it
is the Board's judgment that consummation of the
transaction would be consistent with the public interest and should be approved.
On the basis of the record and for the reasons
discussed above, the Board has determined that the
application should be, and hereby is, approved. The
transaction shall not be consummated before the thirtieth day following the effective date of the Board's
Order or later than three months after the effective
date of the Board's Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of Richmond pursuant to delegated authority.
February 23, 1984
[SEAL]
Dissenting
Associate
Statement
JAMES MCAFEE,
Secretary
of the
Board
of Governor
Teeters
This case represents a substantial departure from prior
Board decisions involving the weighting of thrifts in
the Board's competitive analysis. In this case, the
Board relies solely on the purported competition from
thrifts to mitigate what would otherwise be a clearly
anticompetitive situation in the New Port Richey and
Sarasota banking markets.
In my view, it is not clear that thrifts provide direct
competition to the banking organizations in these
markets. For this reason, I believe the Board should
establish a system with an objective methodology for
weighting the competition from thrifts.
Based on the record in this case, I cannot concur in
the majority's apparent decision to weight thrifts at
least 50 percent merely to reduce the concentration
ratios to acceptable levels. Accordingly, I dissent.
February 23, 1984
Semo Bancshares, Inc.,
Maiden, Missouri
Order
Approving
Formation
of a Bank
Holding
Company
Semo Bancshares, Inc., Maiden, Missouri, has applied
for the Board's approval under section 3(a)(1) of the
Bank Holding Company Act ("BHC Act") (12 U.S.C.
§ 1842(a)(1)) to form a bank holding company by
acquiring 99.1 percent of the voting shares of Maiden
State Bank, Maiden, Missouri ("Bank").
Notice of the application, affording opportunity for
interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the Act.
Applicant is a nonoperating Missouri corporation
organized for the purpose of becoming a bank holding
company by acquiring Bank, which holds deposits of
$39.5 million.1 Upon acquisition of Bank, Applicant
would control the 206th largest commercial banking
organization in Missouri and approximately 0.13 percent of total deposits in commercial banks in the state.
In light of the small share of the state's commercial
banking deposits that would be controlled by Applicant, the Board concludes that consummation of the
transaction would not have any serious adverse effects
on the concentration of banking resources in Missouri.
This proposal involves a restructuring of Bank's
ownership whereby one group of Bank's existing
shareholders ("Waller Group") will form a corporation to acquire 100 percent of Bank's voting shares.
The corporation will acquire the Waller Group's
shares of Bank in addition to shares of Bank owned by
another group of individuals ("Belknap/Boeving
Group"). The Waller Group will own 100 percent of
the shares of Applicant.
Bank is currently the largest commercial banking
organization in the Bernie/Malden banking market,
with total deposits of $39.5 million, representing 39.3
percent of the total deposits in commercial banks in
the market.2 The Belknap/Boeving Group also controls two other banks in the market: State Bank of
Campbell, Campbell, Missouri ("Campbell Bank")
and State Bank of Bernie, Bernie, Missouri ("Bernie
Bank"). Bernie Bank and Campbell Bank together
1. All banking data are as of March 31, 1983.
2. The Bernie/Malden banking market is defined as southern Stoddard County, northern Dunklin County and western New Madrid
County, all in Missouri.
Legal Developments
control $33.3 million in deposits, representing 33.1
percent of the deposits of commercial banks in the
market. Together, the three banks hold 72.4 percent of
the deposits in commercial banks in the market.
In 1980, when the Belknap/Boeving Group applied
for the Board's approval to become a bank holding
company by acquiring Bank, the Board examined the
competitive effects of the original affiliation of Bank,
Campbell Bank, and Bernie Bank. 3 The Board concluded that the effect of the affiliation was to eliminate
significant competition that existed prior to the affiliation and to increase the concentration of banking
resources within the Bernie/Malden banking market.
Accordingly, the application was denied. 4
In order to eliminate these anticompetitive effects in
connection with this application, the Waller Group has
committed to divest its ownership in Bernie Bank to
the Belknap/Boeving Group and the Belknap/Boeving
Group has committed to divest its ownership in Bank
to the Waller Group. The proposed divestitures will
occur prior to or concurrent with consummation of the
proposed transaction. Upon consummation of these
transactions, the Waller Group will not own any bank
in the market except Bank and will terminate all
director/management interlocks with Bernie Bank.
The disaffiliation of Bank with Bernie Bank and Campbell Bank will allow Bank to compete as an independent entity and will increase the number of competitors in the market. Accordingly, after considering the
proposed divestitures and other facts of record, the
Board concludes that the competitive considerations
are consistent with approval of this application.
The financial and managerial resources and future
prospects of Applicant and Bank appear to be generally satisfactory. Considerations relating to convenience
and needs of the community to be served also are
consistent with approval of this application. Accordingly, it is the Board's judgment that the proposed
acquisition is in the public interest and that the application should be approved.
On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be consummated before the thirtieth
calendar day following the effective date of this Order
or later than three months after the effective date of
this Order, unless such period is extended for good
3. In analyzing the competitive effects of a proposal involving
principals of an applicant who control another banking organization in
the same market as the bank to be acquired, the Board considers the
competitive effects of the transaction whereby common control of the
institutions was established. Mahaska Investment Corporation, 63
FEDERAL RESERVE BULLETIN 5 7 9 (1977).
4 . Semo Bancshares
Corporation,
6 6 FEDERAL RESERVE BULLETIN 5 0 9 (1980).
229
cause by the Board or by the Federal Reserve Bank of
St. Louis acting pursuant to delegated authority.
By order of the Board of Governors, effective
February 7, 1984.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, Teeters, Rice, and Gramley. Absent
and not voting: Chairman Volcker.
[SEAL]
Associate
JAMES MCAFEE,
Secretary
of the
Board
Victoria Bankshares, Inc.,
Victoria, Texas
Order
Approving
Acquisition
of
Banks
Victoria Bankshares, Inc., Victoria, Texas, a bank
holding company within the meaning of the Bank
Holding Company Act ( ' A c t " ) , has applied for approval under section 3(a)(3) of the Act (12 U.S.C.
§ 1842(a)(3)) to acquire First State Bank, Poteet, Texas
("State Bank"), and First National Bank in Pleasanton, Pleasanton, Texas ("National Bank") (collectively, "Banks").
Notice of the applications, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views has expired,
and the applications and all comments received have
been considered in light of the factors set forth in
section 3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant is the twelfth largest banking organization
in the state, controlling 16 banking subsidiaries with
aggregate domestic deposits of $809.2 million, representing 0.65 percent of statewide deposits. 1 As a result
of this proposal, Applicant would acquire State Bank
with $13.8 million in deposits, representing 0.01 percent of statewide deposits, and National Bank with
$34.1 million in deposits, representing 0.03 percent of
statewide deposits. After consummation, Applicant's
share of state banking deposits would increase by 0.04
percent. Accordingly, consummation of this proposal
would not have an appreciable effect on the concentration of commercial banking resources in Texas.
Both Banks operate in the Atascosa banking market. 2 Applicant is not presently represented in that
market. Accordingly, the proposal would not result in
the elimination of any existing competition between
Applicant and Banks.
1. Banking data are as of December 31, 1982.
2. The Atascosa market consists of Atascosa County.
230 Federal Reserve Bulletin • March 1984
National Bank is the largest banking organization in
the Atascosa market with 32.7 percent of deposits in
commercial banks in the market. State Bank is the fifth
largest banking organization in the market, with 13.2
percent of market deposits. The two banks hold combined deposits representing 45.9 percent of market
deposits.
The Atascosa banking market is regarded as highly
concentrated with the four largest banking organizations currently holding 84.3 percent of market deposits. After consummation, the four largest banking
organizations would control 97.5 percent of market
deposits. The post merger Herfindahl-Hirschman Index would increase by 431 points to 3036.
Under section 3(c) of the Act the Board is precluded
from approving any proposed acquisition of a bank
that (1) would result in a monopoly, or would be in
furtherance of any combination or conspiracy to monopolize or attempt to monopolize the business of
banking in any part of the United States; or (2) may
substantially lessen competition or tend to create a
monopoly or be in restraint of trade in any banking
market, unless the Board finds that such anticompetitive effects are clearly outweighed by the convenience
and needs of the community to be served. Ordinarily,
a proposal of this type involving such a large combined
share of market deposits would raise significant concerns regarding the competitive effects of the proposal
under this standard.
In recent applications involving affiliated banks in
the same market, however, the Board has regarded as
mitigating factors the small absolute size of the banks
at the time of their affiliation, the substantial number
of years that the banks have been affiliated, and the
existence of the affiliation before the application of the
antitrust laws to bank mergers. 3 These factors are
present in this case.
Banks have been under common ownership since
1947. At the time of their original affiliation, the
absolute size of the banks was small (State Bank—$1.3
million in deposits; National Bank—$2.4 million in
deposits). Currently, the banks continue to be among
the smallest banking organizations in the state. The
affiliation in this case has existed for 37 years and did
not represent an attempt to evade the antitrust laws or
the BHC Act. Common control was effected before
the Celler-Kefauver Antimerger Act of 1950; before
the enactment of the Bank Merger Act of 1960, which
required regulatory agencies to take competitive factors into account in approving proposed mergers, and
before enactment of the Bank Merger Act of 1966,
which clarified the applicability of the antitrust law to
bank mergers.
The Board also notes the presence of thrift institutions in the market which hold approximately 28
percent of total market deposits. Although these institutions do not at this time exercise full commercial
banking powers, they do have a mitigating influence
on the competitive effects of the proposal.
Accordingly, after considering the facts of record,
including the size of the institutions at the time of
affiliation and the substantial number of years that the
institutions have been affiliated, the Board has concluded that the proposal would have no significant
adverse effect on existing competition between Banks.
The Board also has evaluated the proposal in light of
the Board's proposed guidelines for assessing the
competitive effects of market extension mergers and
acquisitions. (47 Federal Register 9017 (1982)). The
Board notes that the state has numerous large bank
holding companies that may be potential entrants. On
this basis, the Board concludes that approval of the
applications would have no significant effect on potential competition.
The financial and managerial resources of Applicant, its subsidiary banks, and Banks are regarded as
generally satisfactory and their prospects appear favorable. Accordingly, considerations relating to banking factors are consistent with approval. Considerations relating to the convenience and needs of the
community to be served also are consistent with
approval of the proposal.
On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be consummated before the thirtieth
calendar day following the effective date of this Order,
or later than three months after the effective date of
this Order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
Dallas, acting pursuant to delegated authority.
By order of the Board of Governors, effective
February 16, 1984.
3. Texas East BanCorp,
Inc.,
(1983); First Monco Bancshares,
Voting for this action: Chairman Volcker and Governors
Wallich, Partee, Teeters, Rice, and Gramley. Absent and not
voting: Governor Martin.
69 FEDERAL RESERVE BULLETIN 6 3 6
Inc., 6 9 FEDERAL RESERVE BULLE-
TIN 293 (1983). Although these cases did not involve the transfer of
ownership of a bank to parties that were not already principals of the
bank, the Board believes that the rationale of these cases applies in
this case as well since the proposed acquisition could be effected by
the transfer of Banks to a holding company by its current owners, and
the subsequent sale of the holding company to Applicant.
JAMES MCAFEE,
[SEAL]
Associate
Secretary
of the
Board
Legal Developments
Orders Issued Under Section 4 of Bank
Company Act
Holding
Citicorp,
New York, New York
Order
Approving
Tennessee
Kentucky
Acquisition
and an Industrial
that
Will Engage
of an Industrial
Bank
Loan
in
Company
in Certain
in
Insurance
Activities
Citicorp, New York, New York, a bank holding company within the meaning of the Bank Holding Company Act ("Act") (12 U.S.C. § 1841 et seq.), has applied
for approval under section 4(c)(8) of the Act
(12 U.S.C. § 1843(c)(8)) and section 225.23(a)(1) of the
Board's Regulation Y (12 CFR § 225.23(a)(l)(49
Federal Register 794 (1984)) to establish a de novo
subsidiary, Citicorp Financial Services Corporation
(Tennessee), to engage in the activities of an industrial
bank through offices in Madison, Memphis, Nashville
and Knoxville, Tennessee ("CFSC Tennessee"). Citicorp has also applied to establish a separate de novo
subsidiary, Citicorp Financial Service Corporation
(Kentucky) to engage in the activities of an industrial
loan company through offices in Lexington and Louisville, Kentucky ("CFSC Kentucky"). Both CFSC
Tennessee and CFSC Kentucky propose to make
consumer and commercial loans, to accept time and
savings deposits, to engage in the sale of life and
accident and health insurance in connection with extensions of credit, and to engage in the sale at retail of
money orders and travelers checks and the sale of
consumer oriented financial management courses.
Such activities, as qualified by the terms of Citicorp
proposal, have been determined by the Board to be
closely related to banking (12 CFR § 225.25(b)(2),(8)
and (12)).1
Notice of both applications, affording opportunity
for interested persons to comment, was duly published
(48 Federal Register 44110 (1983)). The time for filing
comments and views has expired and the Board has
considered the applications and all comments received
in light of the factors set forth in section 4(c)(8) of the
Act (12 U.S.C. § 1843(c)(8)).2
1. The provision of consumer-oriented financial management
courses was found by order to be closely related to banking. Citicorp,
65 FEDERAL RESERVE BULLETIN 2 6 5 (1979).
2. The comments of First Tennessee National Corporation, Memphis, Tennessee, were considered although received after the close of
the comment period.
231
Citicorp is the largest commercial banking organization in the United States, with total consolidated
assets of $134.7 billion. 3 Citicorp operates four subsidiary banks in the U.S. including Citibank, New York,
New York with total assets of $110.6 billion. There is
no evidence that consummation of this proposal would
result in any undue concentration of resources, conflicts of interests or unsound banking practices.
Citicorp's application to establish an industrial bank
in Tennessee 4 raises serious concerns relating to undermining the policies of the Act. In 1971, when the
Board approved industrial banking as a permissible
activity under section 4(c)(8), industrial banks and
industrial loan companies, by tradition or by statutory
constraint, were primarily engaged in consumer finance activities, which are regarded as both closely
related to banking and a proper incident thereto.
However, under Tennessee law, CFSC Tennessee's
state industrial bank charter gives it the power to
provide many of the products and services that a
commercial bank may provide. Tennessee industrial
banks may accept time deposits in the form of thrift
certificate accounts and make commercial loans.
Aside from their similar powers, industrial banks and
state-chartered commercial banks in Tennessee are
subject to similar regulatory requirements administered by the state bank commissioner. Tennessee
industrial banks that accept deposits must have those
deposits insured by the Federal Deposit Insurance
Corporation. Under the Deposit Insurance Flexibility
Act of 19825 and relevant FDIC regulations, industrial
banks are regarded as "state banks" for purposes of
the Federal Deposit Insurance Act, 6 making industrial
banks eligible for FDIC insurance.
In evaluating Citicorp's application, the Board has
considered the changing character of industrial banks
and their newly acquired eligibility for FDIC insurance
as relevant to the public benefits the Board is required
to assess in all applications brought under section
4(c)(8) of the Act. The Board believes that the expanding powers of industrial banks and their ability to
obtain FDIC insurance blurs the distinction between
industrial banks and commercial banks and presents
3. Banking data are as of December 30, 1983.
4. Industrial loan companies in Kentucky do not appear to be
eligible for FDIC insurance, nor has Citicorp applied for such insurance. Therefore, the Kentucky acquisition does not raise the same
issues as that in Tennessee, where State law requires FDIC insurance
for the deposits held by industrial banks. Tenn. Code Ann. § 45-5-605
(1983).
5. Public Law No. 97-320; 96 Stat. 1969 (1982); 12 U.S.C.
§ 1813(a).
6. 64 Stat. 873 (1950); 12 U.S.C. § 1811 et seq.
232
Federal Reserve Bulletin • March 1984
the potential for undermining the policies of the Act.
On balance, however, the Board finds that denial is
not warranted in this case.
In considering this issue, the Board is constrained
by the provisions of the Bank Holding Company Act
defining a bank as an institution which both takes
demand deposits and makes commercial loans.
(12 U.S.C. § 1841(c)). In its recent expanded definition
of that term (12 CFR § 225.2(a)(1)), the Board acted
to bring within the scope of the Act those institutions
that the Board believes, in accordance with the Act's
legislative history, Congress intended to encompass
within the term bank and to subject them to its
limitations on conflicts of interests, concentration of
resources and excessive risk.
The industrial bank that Citicorp proposes to acquire in this case would not be a bank within the scope
of this expanded definition, because it will not accept
demand deposits, including transaction accounts.
Consequently, the Board believes that it would be
inappropriate to treat this institution as a bank subject
to the limitation on interstate acquisitions contained in
section 3(d) of the Act. Nevertheless, the Board
believes that industrial banks exercising the power to
take federally insured deposits, make commercial
loans and perform other banking functions should be
subject to the policies established by Congress for
banks as contained in the Bank Holding Company Act.
Legislation proposed by the Board and others that is
now pending before Congress would accomplish this
objective. The recent acquisitions of industrial banks
and nonbank banks by securities, insurance, and retail
firms, as well as by bank holding companies, and the
exclusion of these acquisitions from a broadened definition of the term bank, indicates that Congressional
action is urgently needed in order to assure maintenance of the policies of the Act, including those on
concentration of resources which are inherent in the
limitations on interstate banking.
In reaching this determination, the Board has given
serious consideration to the probable efficacy of a
decision to limit further the type of industrial banking
that is currently permissible under section 4(c)(8) of
the Act. Any action that would restrict the acquisition
of industrial banks by bank holding companies would
not limit the use of industrial banks by commercial
enterprises as a device for engaging in banking, because commercial enterprises that acquire such industrial banks would not be subject to the Act. Accordingly, it would be ineffective and would not further the
policy objectives of the Act to impose a competitive
limitation only on bank holding companies.
In addition, the Board has determined that certain
limitations that it is placing on Citicorp's industrial
bank activities mitigate the Board's concerns suffi
ciently to allow approval of this application. The
Board has relied on the fact that CFSC Kentucky and
CFSC Tennessee have committed to avoid offering
any transaction accounts, thereby removing an important characteristic of bank status. In this regard, the
Board conditions its order to require that Citicorp not
use sweep accounts or tandem operations between
CFSC Kentucky or CFSC Tennessee and any other of
its subsidiaries or other financial institutions to offer as
a package the demand deposit and commercial lending
services that define a bank under the Act.
Based upon the foregoing and all the facts of record,
the Board has determined that the balance of public
interest factors it is required to consider under section
4(c)(8) is favorable. Accordingly, the applications are
hereby approved. This determination is subject to the
conditions set forth in this order with respect to
operations in tandem with any other Citicorp subsidiary or any other financial institution and the conditions set forth in section 225.23(b) of Regulation Y
(12 CFR § 225.23(b)). The approval is also subject to
the Board's authority to require modification or termination of the activities of the 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.
These transactions shall not be consummated later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board, or by the Federal Reserve Bank of New
York, pursuant to delegated authority.
By order of the Board of Governors, effective
February 7, 1984.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, Teeters, Rice, and Gramley. Absent
and not voting: Chairman Volcker. Governor Wallich abstained from voting on the insurance portion of these applications.
JAMES MCAFEE,
[SEAL]
Associate Secretary of the Board
Citizens Corporation,
Providence, Rhode Island
Order Approving Acquisition of Shares in MARLA,
Inc.
Citizens Corporation, Providence, Rhode Island, a
bank holding company within the meaning of the Bank
Holding Company Act ("Act"), has applied for the
Board's approval pursuant to section 4(c)(8) of the Act
(12 U.S.C. § 1843(c)(8)) and section 225.4(b) of the
Board's Regulation Y (12 CFR § 225.4(b)) to acquire
Legal Developments
80 percent of the voting shares of MARLA, Inc.,
Atlanta, Georgia ("MARLA"), a de novo joint venture with The Money Store, Inc., Springfield, New
Jersey ("TMS"). TMS would hold 20 percent of the
voting shares of MARLA. MARLA would engage in
the origination, sale, and servicing of mortgage loans
and other consumer finance loans and would act as
agent for the sale of credit life and credit accident and
health insurance. The Board has determined each of
these activities to be closely related to banking
(12 CFR § 225.4(a)(1), (3), and (9)).
Notice of the application, affording opportunity for
interested persons to submit comments on the public
interest factors, has been duly published (48 Federal
Register 52,355). The time for filing comments and
views 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 is a subsidiary of Citizens Savings Bank,
Providence, Rhode Island ("Savings Bank"), an
FDIC-insured mutual savings bank.1 Considered as a
single organization, Applicant and Savings Bank control aggregate deposits of approximately $1.0 billion2
and constitute the fourth largest depository organization in Rhode Island. Both Applicant and Savings
Bank currently make first and second mortgage loans
and secured and unsecured personal loans.
TMS, with total assets of approximately $101.9
million, engages through numerous subsidiaries in
making and packaging second mortgage loans and
selling such loans to banks and other lenders. The
company operates in 11 states 3 and the District of
Columbia. While TMS does not directly conduct operations in Georgia, it holds approximately $500,000 in
Georgia mortgages purchased in the secondary mortgage market. These purchased mortgages represent
only 0.7 percent of TMS' total receivables of $89.4
million.
MARLA will do business under the name of "The
Money Store/Georgia" or a similar name. MARLA
will initially operate from one office in Atlanta, and the
geographic area served will be the state of Georgia.
Section 4(c)(8) of the Act requires the Board, in
connection with every application to engage in a
nonbanking activity, to consider whether performance
of a nonbanking activity by a particular bank holding
company " . . . can reasonably be expected to produce
1. Savings Bank is exempt from bank holding company status
under section 2(a)(5)(F) of the Act (12 U.S.C. § 1841(a)(5)(F)).
2. All financial data are as of June 30, 1983.
3. California, Connecticut, Delaware, Florida, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania,
and Virginia.
233
benefits to the public, such as greater convenience,
increased competition, or gains in efficiency, that
outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking
practices."
This proposal involves a de novo acquisition. Normally, consummation of such a transaction would
have no adverse effects upon either existing or potential competition. However, since the proposal involves
a joint venture between a bank holding company and a
nonbanking company, the Board has analyzed the
proposal with respect to its effects on existing and
potential competition between Applicant and TMS in
the relevant markets for mortgage banking and consumer financing.4
Although both Applicant and TMS currently engage
in the activities proposed for MARLA, neither TMS
nor Applicant (or its parent organization) currently
operates in Georgia. Consummation of the proposed
transaction thus would not eliminate any existing
competition between Applicant and TMS. The proposal would not have a significant effect on probable
future competition in mortgage banking and consumer
finance markets in Georgia, since these markets are
not highly concentrated and there are numerous potential entrants into the markets.
The financial and managerial resources and future
prospects of Applicant, Savings Bank, and TMS are
consistent with approval of this application. Considerations relating to the convenience and needs of the
communities to be served also are consistent with
approval. Consummation of the transaction will give
residents of Georgia access to a new source of consumer financing and mortgage loans. In addition, it
appears that the de novo nature of this proposal will
result in increased competition in the relevant market.
There is no evidence in the record to indicate that
consummation of the proposed joint venture would
result in undue concentration of resources, conflicts of
interests, unsound banking practices, or other adverse
effects on the public interest. Based on the foregoing
and other considerations reflected in the record, the
Board concludes that the balance of public interest
factors that it must consider under section 4(c)(8) of
the Act is favorable.
4. The Board has previously expressed concern about the potential
for undue concentration of resources or other adverse effects that may
result from the combination in a joint venture of banking and
nonbanking institutions. See Deutsche Bank AG, 67 FEDERAL RESERVE BULLETIN 449 (1981); BankAmerica Corporation, 60 FEDERAL
RESERVE BULLETIN 517 (1974). In this case, however, there appears
to be no basis for such concerns since both co-venturers are of
comparatively modest size, and all activities of the nonbanking coventurer, TMS, have been determined to be closely related to banking
under section 225.4(a) of Regulation Y.
234
Federal Reserve Bulletin • March 1984
Accordingly, the application is approved. This determination is subject to the conditions set forth in
section 225.4(c) of Regulation Y and to the Board's
authority to require such modification or termination
of such activities 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 proposed activities shall be commenced 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
Boston, pursuant to delegated authority.
By order of the Board of Governors, effective
February 2, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Teeters, Rice, and Gramley. Abstaining from
this action: Governor Wallich.
JAMES MCAFEE,
[SEAL]
Associate
Secretary
of the
Board
Mellon National Corporation,
Pittsburgh, Pennsylvania
Order
Approving
and Engaging
Acquisition
in Certain
of an Industrial
Insurance
Bank
Activities
Mellon National Corporation, Pittsburgh, Pennsylvania ("Mellon"), a bank holding company within the
meaning of the Bank Holding Company Act ("Act")
(12 U.S.C. § 1841 et seq.), has applied for approval
under section 4(c)(s) of the Act (12 U.S.C.
§ 1843(c)(8)) and section 225.23(a)(2) of the Board's
Regulation Y (12 CFR § 225.23(a)(2), 49 Federal
Register 794 (1984)), to acquire, through its subsidiary,
Mellon Financial Services Corporation, Northglenn
Industrial
Bank,
Inc.,
Northglenn,
Colorado
("Northglenn"), a company that engages in the activities of an industrial bank, including making consumer
and commercial loans and accepting time and savings
deposits from consumers and small businesses. Mellon
has also applied to engage, through Northglenn, in
the sale of life and accident and health insurance
in connection with extensions of credit by Northglenn. Such activities, as qualified by the terms of
Mellon's proposal, have been determined by the
Board to be closely related to banking (12 CFR
§ 225.25(b)(2), (8)).
Notice of the application, affording opportunity for
interested persons to comment, was duly published (48
Federal Register 49381 (1983)). 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)).
Mellon is the largest commercial banking organization in Pennsylvania, with total consolidated assets of
$26 billion.1 Mellon operates four subsidiary banks
with total deposits of $15.8 billion. Among Mellon's
nonbank subsidiaries are two industrial banks that,
like Northglenn, operate in the Denver market, which
contains 68 industrial banks with total deposits of
$199.2 million. 2 Considerations under section 4(c)(8)
relating to concentration of resources are consistent
with approval. Also, there is no evidence that consummation of this proposal would result in any conflicts of
interest or unsound banking practices.
The acquisition of Northglenn by Mellon raises
serious concerns relating to undermining the policies
of the Act. In 1971, when the Board approved industrial banking as a permissible activity under section
4(c)(8), industrial banks and industrial loan companies,
by tradition or by statutory constraint, were primarily
engaged in consumer finance activities, which are
regarded as both closely related to banking and a
proper incident thereto. However, under Colorado
law, Northglenn's state industrial bank charter gives it
the power to provide many of the products and services that a commercial bank may provide. Colorado
industrial banks may accept time deposits, offer NOW
and other thrift accounts and make commercial loans.
Aside from their similar powers, industrial banks and
state-chartered commercial banks in this state are
subject to similar regulatory requirements administered by the state bank commissioner. Colorado industrial banks that offer deposits must have those deposits
insured by a state or federal agency. Under the Deposit Insurance Flexibility Act of 19823 and relevant
FDIC regulations, industrial banks are regarded as
"state banks" for purposes of the Federal Deposit
Insurance Act, 4 making industrial banks eligible for
FDIC insurance.
In evaluating Mellon's application, the Board has
considered the changing character of industrial banks
and their newly acquired eligibility for FDIC insurance
as relevant to the public benefits the Board is required
to assess in all applications brought under section
4(c)(8) of the Act. The Board believes that the expanding powers of industrial banks and their ability to
obtain FDIC insurance blur the distinction between
industrial banks and commercial banks and present the
1. Banking data are as of September 30, 1983.
2. Industrial Bank Savings Guaranty Corporation of Colorado
(Data as of December 31, 1982).
3. Public Law No. 97-320; 96 Stat. 1969 (1982); 12 U.S.C.
§ 1813(a).
4. 64 Stat. 873 (1950); 12 U.S.C. § 1811 et seq.
Legal Developments
potential for undermining the policies of the Act. On
balance, however, the Board finds that denial is not
warranted in this case.
In considering this issue, the Board is constrained
by the provisions of the Bank Holding Company Act
defining a bank as an institution which both takes
demand deposits and makes commercial loans.
(12 U.S.C. § 1841(c)). In its recent expanded definition
of that term (12 CFR § 225.2(a)(1)), the Board acted to
bring within scope of the Act those institutions that the
Board believes, in accordance with the Act's legislative history, Congress intended to encompass within
the term bank and to subject them to its limitations on
conflicts of interests, concentration of resources and
excessive risk.
The industrial bank that Mellon proposes to acquire
in this case would not be a bank within the scope of
this expanded definition, because it will not accept
demand deposits, including transaction accounts.
Consequently, the Board believes that it would be
inappropriate to treat this institution as a bank subject
to the limitation on interstate acquisitions contained in
section 3(d) of the Act. Nevertheless, the Board
believes that industrial banks exercising the power to
take federally insured deposits, make commercial
loans and perform other banking functions should be
subject to the policies established by Congress for
banks that are contained in the Bank Holding Company Act, and legislation proposed by the Board and
others that is now pending before Congress would
accomplish this objective. The recent acquisitions of
industrial banks and nonbank banks by securities,
insurance, and retail firms, as well as by bank holding
companies, and the exclusion of these acquisitions
from a broadened definition of the term bank, indicate
that Congressional action is urgently needed in order
to assure maintenance of the policies of the Act,
including those on concentration of resources, which
are inherent in the limitations on interstate banking.
In reaching this determination, the Board has given
serious consideration to the probable efficacy of a
decision to limit further the type of industrial banking
that is currently permissible under section 4(c)(8) of
the Act. Any action that would restrict the acquisition
of industrial banks by bank holding companies would
not limit the use of industrial banks by commercial
enterprises as a device for engaging in banking, because commercial enterprises that acquire such industrial banks would not be subject to the Bank Holding
Company Act. Accordingly, in this instance, it would
be ineffective and would not further the policy objectives of the Act to impose a competitive limitation only
on bank holding companies.
In addition, the Board has determined that certain
limitations that it is placing on Mellon's industrial bank
235
activities mitigate the Board's concerns sufficiently to
allow approval of this application. The Board has
relied on the fact that Northglenn has committed to
avoid offering any transaction account, thereby removing an important characteristic of bank status. In
this regard, the Board conditions its order to require
that Mellon not use sweep accounts or tandem operations between Mellon Financial Services Corporation
and any other of its subsidiaries or other financial
institutions to offer as a package the demand deposit
and commercial lending services that define a bank
under the Act.
Based upon the foregoing and all the facts of record,
the Board has determined that the balance of public
interest factors it is required to consider under section
4(c)(8) is favorable. Accordingly, the application is
hereby approved This determination is subject to the
conditions set forth in this order with respect to
operations in tandem with any other Mellon subsidiary
or any other financial institution and the conditions set
forth in section 225.23(b) of Regulation Y (12 CFR
§ 225.23(b)). The approval is also subject to the
Board's authority to require modification or termination of the activities of the 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 not be consummated later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board, or by the Federal Reserve Bank of Cleveland,
pursuant to delegated authority.
By order of the Board of Governors, effective
February 6, 1984.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, Teeters, Rice, and Gramley. Absent
and not voting: Chairman Volcker. Governor Wallich abstained from voting on the insurance portion of this application.
JAMES MCAFEE,
[SEAL]
Associate
Secretary of the Board
Norwest Corporation,
Minneapolis, Minnesota
Order Approving Application to Engage De Novo in
the Sale of Property and Casualty Insurance Related
to Extensions of Credit by Finance Company
Subsidiaries
Norwest Corporation, Minneapolis, Minnesota, a
bank holding company within the meaning of the Bank
Holding Company Act of 1956, as amended (12 U.S.C.
236
Federal Reserve Bulletin • March 1984
§ 1841 et seq.) (the "Act"), has applied under section
4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and section
225.23(a)(1) of the Board's Regulation Y (12 CFR
225.23(a)(1)), 49 Federal Register 974 (1984)) for approval to engage de novo, through its subsidiaries,
Norwest Financial Massachusetts, Norwest Financial
Maryland, Inc., and Norwest Financial Leasing, Inc.,
in the sale of property and casualty insurance in
connection with extensions of credit by these subsidiaries.
Notice of the application affording interested persons an opportunity to submit comments, was duly
published (48 Federal Register 56850 (1983)). The time
for filing comments has expired and the Board has
considered this application and all comments received
in light of the public interest factors set forth in section
4(c)(8) of the Act.
Norwest, with total consolidated assets of $19.9
billion,1 is one of the two largest commercial banking
organizations in Minnesota. Norwest controls 86 subsidiary banks in seven states in the Midwest. In
addition, Norwest has a number of subsidiaries engaged in nonbanking activities, including Norwest
Financial Services, Inc., a consumer finance company, which also engages in the sale of credit life and
accident and health insurance, lease financing, the
reinsurance of credit-related insurance and data processing activities through offices in 37 states. Norwest
Financial Services, through its Massachusetts subsidiary, Norwest Financial Massachusetts ("NFMass"),
operates 12 consumer finance company offices in
Massachusetts. It also operates 23 consumer finance
company offices in Maryland through its Maryland
subsidiaries Norwest Financial Maryland, Inc.
("NFMd"), and Norwest Financial Leasing, Inc.
("NFL"). These subsidiaries also engage in the sale of
credit life and credit accident and health insurance.
Norwest proposes to expand these insurance activities
in Maryland and Massachusetts to include the sale of
property and casualty insurance related to extensions
of credit by NFMass, NFMd and NFL.
Title VI of the Garn-St Germain Act of 1982 amended section 4(c)(8) of the Act to specify that insurance
agency activities are not "closely related to banking"
and thus are not permissible activities for bank holding
companies, unless the activities are included within
one of seven specific exemptions (A through G) contained in section 4(c)(8). Norwest claims it is authorized to engage in the sale of credit-related property
and casualty insurance under exemption G, which
permits those bank holding companies that received
Board approval prior to 1971 to engage in insurance
agency activities to continue to engage in such activities. Unless Norwest's proposal qualifies under this
exemption or some other exemption in section 4(c)(8),
the sale of property and casualty insurance, even
where related to extensions of credit, is not currently a
permissible activity for bank holding companies.
Norwest has been engaged in general insurance
agency operations since 1929. In 1959, Norwest received approval from the Board under the provisions
of the Bank Holding Company Act of 1956, to retain
eight insurance agencies which Norwest had organized
into two subsidiaries. 2 Both of these subsidiaries engaged in general insurance agency activities, including
the sale of property and casualty insurance to customers of Norwest and to the general public. Norwest has
been engaged in general insurance agency activities on
a continuous basis since receiving Board approval in
1959, and Norwest is one of 16 active companies that
qualify for exemption G.
Norwest now seeks approval to sell property and
casualty insurance related to extensions of credit by its
Massachusetts and Maryland subsidiaries. Norwest
did not sell such insurance, or indeed any insurance, in
Massachusetts and Maryland in 1971.3 In intepreting
exemption G of section 4(c)(8), the Board must decide
whether Norwest is authorized to engage in insurance
agency activities in states where it was not operating in
1971.
The Board notes that exemption D of section 4(c)(8)
also creates certain grandfather rights for bank holding
companies engaged in insurance agency activities on
May 1, 1982. Such companies would be permitted to
expand their existing insurance agency activities geographically at least to new locations in the state where
the bank holding company has its principal place of
business or to adjacent states or to states where the
insurance agency activities were already being conducted. Since by definition companies engaged in
insurance agency activities prior to 1971 would qualify
for the 1982 grandfather provision contained in exemption D, there would appear to be no purpose to
exemption G unless it was to confer an exemption that
is broader in scope than that in exemption D and to
permit, as a minimum, insurance agency activities
without restriction on location.
This interpretation is consistent with the terms of
exemption G, which contains no qualifications or
2. 4 5 FEDERAL RESERVE BULLETIN 9 6 3 ( 1 9 5 9 ) .
3. Norwest began selling credit life and credit accident and health
i n s u r a n c e in M a s s a c h u s e t t s in 1982 ( s e e 6 8 FEDERAL RESERVE BULLE-
1. All banking data are as of December 31, 1983, unless otherwise
indicated.
TIN 519 (1982)) and in Maryland in 1983 (see the letter of the Federal
Reserve Bank of Minneapolis of August 16, 1983).
Legal Developments
restrictions on the insurance activities of bank holding
companies approved prior to 1971. Accordingly, the
Board finds that exemption G authorizes the sale of
credit-related property and casualty insurance by Norwest in Massachusetts and Maryland.
The Board does not have to reach the issue of
whether exemption G permits as closely related to
banking the sale of kinds or types of insurance that
Norwest did not offer in 1971. The Order of the Board
and the decision of the Hearing Officer in 19594 make
it clear that Norwest engaged in the sale of property
and casualty insurance.
There is evidence in the record indicating that
consummation of Norwest's proposal would not result
in any undue concentration of resources, adverse
effects on competition, conflicts of interests, unsound
banking practices, or any other adverse effects. Moreover, the Board has determined that the balance of the
public interest factors the Board is required to consider under section 4(c)(8) of the Act is favorable. Norwest will provide an additional source for property and
casualty insurance that will be particularly convenient
for its loan customers. It will enter the market de novo
and it has indicated that it will act affirmatively to
ensure compliance with all laws and regulations prohibiting tie-ins.
The Board has also reviewed the Massachusetts
statutes that restrict the ability of financial institutions
to obtain a license to sell insurance. 5 It would appear
that Norwest's subsidiary, NFMass, has already obtained such a license and the state law licensing
restrictions are inapplicable to this expansion of insurance agency activities. Moreover, the Board's approval would not permit any activity in contravention of
state law since Norwest must still meet any applicable
licensing requirements in a separate state proceeding.
Nevertheless, the Board's review of the licensing
restrictions indicates that they do not apply to sales
finance companies, such as NFMass, or to bank
holding companies, such as Norwest, that control
subsidiary banks located in states other than the New
England states.
Accordingly, oased upon tne foregoing and other
facts of record, the application is hereby approved.
This determination is subject to the conditions set
forth in section 225.23(b) of Regulation Y (12 CFR
§ 225.23(b)) 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
237
provisions and purposes of the Act and the Board's
regulations and orders issued thereunder, or to prevent evasion thereof.
The proposal shall be consummated 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 Minneapolis,
pursuant to delegated authority.
By order of the Board of Governors, effective
February 28, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Teeters, and Gramley. Abstaining from this
action: Governor Wallich. Absent and not voting: Governor
Rice.
WILLIAM W . WILES,
[SEAL]
Secretary
of the
Board
PNC Financial Corp,
Pittsburgh, Pennsylvania
Order Approving Acquisition
Subsidiary
of Data
Processing
PNC Financial Corp, Pittsburgh, Pennsylvania, a bank
holding company within the meaning of the Bank
Holding Company Act of 1956, as amended (12 U.S.C.
§ 1841 et seq.), has applied for approval under section
4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) to acquire 51
percent of the voting shares of LeMans Group, Ltd.,
Lancaster, Pennsylvania ("Company"), a company
engaged in selling integrated mini-computer systems
for the leasing of personal property by banks and other
financial institutions. Such activities have been determined by the Board to be closely related to banking
(12 CFR § 225.4(a)(6)(i) and (8)).
Notice of the application, affording opportunity for
interested Persons to submit comments, has been duly
published (48 Federal Register 5177 (1983)). The time
for filing comments has expired, and the application
and all comments received have been considered in
light of the public interest factors set forth in section
4(c)(8) of the Act.
Applicant, the second largest commercial banking
organization in Pennsylvania, controlling four banking
subsidiaries with aggregate domestic deposits of $7.7
billion,1 has applied to acquire Company and thereby
engage in the activities described above. In connection
with this application, the Secretary of the Board has
4. 4 5 FEDERAL RESERVE BULLETIN 9 6 3 .
5. Massachusetts General Law Annotated, Chapter 175, Section
174 E ( 1 9 8 3 ) .
1. Deposit data are as of December 31, 1982, adjusted for Applicant's acquisitions through January 31, 1984.
238
Federal Reserve Bulletin • March 1984
taken into consideration whether the activities to be
performed by Applicant can reasonably be expected to
produce benefits to the public that outweigh possible
adverse effects. Having considered the record of this
application in light of the factors contained in the Act,
the Secretary of the Board has determined that the
balance of the public interest factors under section
4(c)(8) is favorable.
On the basis of these considerations, the application
is approved. This determination is subject to the
conditions set forth in section 225.4(c) of Regulation Y
and to the Board's authority to require such modification or termination of the activities of a bank holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance with the provisions
and purposes of the Act and the Board's regulations
and orders issued thereunder, or to prevent evasions
thereof.
The transaction shall not be consummated later than
three months after the effective date of this order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Cleveland,
acting pursuant to delegated authority.
By order of the Secretary of the Board, acting
pursuant to delegated authority for the Board of Governors, effective February 10, 1984.
JAMES M C A F E E ,
[SEAL]
Associate
Secretary of the Board
Security Pacific Corporation,
Los Angeles, California
Order Approving Application to Engage in Certain
Futures Commission Merchant and Broker/Dealer
Activities
Security Pacific Corporation, Los Angeles, California,
a bank holding company within the meaning of the
Bank Holding Company Act ("BHC Act"), has applied for the Board's approval under section 4(c)(8) of
the BHC Act (12 U.S.C. § 1843(c)(8)) and section
225.4(b)(2) of the Board's Regulation Y (12 CFR
§ 225.4(b)(2)) to engage de novo through its whollyowned indirect subsidiary, Security Pacific Mortgage
Services, Inc. 1 ("Mortgage Services"), in the following activities: the execution and clearance on behalf of
1. Security Pacific Mortgage Services, Inc. is a wholly-owned
direct subsidiary of Security Pacific Mortgage Corporation ("Mortgage Corporation") a direct nonbank subsidiary of Applicant engaged
primarily in mortgage banking activities. Mortgage Corporation is the
third largest issuer of GNMA securities in the United States.
nonaffiliated persons, of financial futures contracts
including futures on securities issued or guaranteed by
the U.S. government and its agencies and on U.S. and
foreign money market instruments; and the execution
and clearance of options on these financial futures
contracts on behalf of nonaffiliated persons; acting as a
broker and dealer on behalf of nonaffiliated persons
with respect to securities issued or guaranteed by the
U.S. government and its agencies; and acting as a
broker with respect to options on securities issued or
guaranteed by the U.S. government and its agencies
and with respect to options on U.S. and foreign money
market instruments. In addition, Mortgage Services
proposes to offer incidental investment advice in connection with its FCM activities.
Notice of the application, affording interested persons an opportunity to submit comments on the relation of the proposed activities to banking and on the
balance of the public interest factors regarding the
application has been duly published (48 Federal Register 23910 (May 27, 1983)). The time for filing comments has expired and the Board has considered the
application and all comments received in light of the
public interest factors set forth in section 4(c)(8) of the
BHC Act. 2
Applicant is a bank holding company by virtue of its
control of Security Pacific National Bank, Los Angeles, California ("Bank"). Bank holds deposits of approximately $26.0 billion3 and is the second largest
banking organization in California. Applicant, through
its subsidiaries, engages in various permissible nonbanking activities. Applicant's financial and managerial resources, and in particular, its capitalization are
adequate for it to engage in additional nonbanking
activities.
In order to approve an application submitted pursuant to section 4(c)(8) of the BHC Act, the Board is first
required to determine that the proposed activities are
closely related to banking or managing or controlling
banks. The Board has determined previously that
certain FCM activities are closely related to banking:
the execution and clearance of futures contracts in
bullion, foreign exchange, U.S. government and agency securities, and money market instruments, 4 and the
execution and clearance of options on futures contracts in gold bullion and U.S. government securities. 5
2. The Dealer Bank Association submitted a comment in favor of
the proposal.
3. All banking data are as of June 30, 1983.
4. E.g., J.P. Morgan & Company, Incorporated, 68 FEDERAL
RESERVE BULLETIN 5 1 4 ( 1 9 8 2 ) ;
BULLETIN 7 7 6 (1982).
Citicorp,
5. E.g., J.P. Morgan & Company,
6 8 FEDERAL
Incorporated,
RESERVE BULLETIN 7 7 3 (1983) ( " M o r g a n
//").
RESERVE
69 FEDERAL
Legal Developments
Applicant's proposal to act as an FCM with respect to
futures contracts on securities issued or guaranteed by
the U.S. government and its agencies and on U.S. and
foreign money market instruments is substantially
similar to proposals to engage in these activities previously approved by the Board. The record indicates
that Applicant, Bank and Mortgage Corporation have
been active in the cash and futures markets for these
instruments and have the expertise to provide these
services to customers. 6 In addition, Mortgage Services
has developed the requisite controls to monitor customer credit risk. 7 Thus, the Board has determined
that in the manner proposed, these activities are
closely related to banking.
The Board also has determined by order that underwriting and dealing in certain government securities
and money market instruments is closely related to
banking. The Board's finding that the activity is closely related to banking was premised on the facts that
national and State member banks are expressly authorized by statute to engage in the activity, 12 U.S.C.
§ 24 (Seventh), and that many banks in fact engage in
the activity. 8 The Board finds Mortgage Services'
proposal to broker and deal in government securities is
substantially similar to proposals the Board has previously approved. Accordingly, the Board concludes
that in the manner proposed, Mortgage Services'
proposal to broker and deal in U.S. government and
agency securities is closely related to banking.
Mortgage Services proposes to engage in several
activities not previously determined by the Board to
be closely related to banking. Specifically, Mortgage
Services proposes to execute and clear options on
futures on U.S. and foreign money market instruments
and to broker options on securities issued or guaranteed by the U.S. Government and its agencies and
options on money market instruments.
With respect to Applicant's proposal to execute and
clear options on futures on U.S. and foreign money
market instruments, the Board has previously determined that options on futures are functionally and
operationally similar to a futures contract for the same
commodity. 9 As noted above, the Board has deter-
mined previously that executing and clearing futures
on money market instruments is closely related to
banking, and Applicant's prior experience in the cash
and futures markets for these instruments demonstrates that Mortgage Services would have the expertise to provide the proposed options services with
respect to these financial futures contracts. Accordingly, the Board concludes that Mortgage Services'
proposal with respect to options on financial futures
contracts is closely related to banking.
Mortgage Services also proposes to engage in brokerage activities with respect to options on certain
physicals; i.e., securities issued or guaranteed by the
U.S. Government and its agencies and U.S. and
foreign money market instruments. 10 Although an option on a physical differs somewhat from a future or an
option on a future, an option on a physical appears to
serve the same function as these other instruments
since it offers the investor a means to hedge portfolio
risk.
The Board has previously approved applications to
engage in discount securities brokerage for retail customers with respect to corporate securities and has
added discount securities brokerage to the list of
permissible nonbanking activities for bank holding
companies generally. 11 As a broker for options on
physicals, Mortgage Services will act solely as agent
on behalf of nonaffiliated persons for the purchase and
sale of such options. The Board notes that a broker of
options on U.S. government and agency securities and
of options on money market instruments is a securities
broker under the securities laws. Moreover, the services performed by a broker of options on U.S.
10. Pursuant to an accord between the SEC and the CFTC, options
on securities are considered securities and are regulated by the SEC.
The substance of this accord was subsequently adopted by Congress,
Pub. L. No. 97-444, 96 Stat. 2294 (codified as amended at 7 U.S.C.
§ 2(a)) (January 11, 1982) and Pub. L. No. 97-303, 96 Stat. 1409
(codified as amended at 15 U.S.C. § 77b) (October 13, 1982). Thus,
Mortgage Services will be required to register as a broker/dealer under
the Securities Exchange Act of 1934 in connection with its brokering
of options on government securities and of options on money market
instruments.
11. BankAmerica
6. Indeed, Mortgage Corporation has used financial futures to
reduce the risks associated with its mortgage banking activities since
such futures were first traded in 1975.
7. Pursuant to a formal service agreement, Mortgage Corporation
will provide certain services to Mortgage Services, including the
following; assessing customer credit risk, monitoring customer positions and margin accounts and providing administrative and data
processing services. These services will assist Mortgage Services in
establishing appropriate position limits for customers.
8. 41 Federal Register 47083 (1976); 43 Federal Register 5382
(1978).
9. Morgan II, supra.
239
Corporation,
6 9 FEDERAL RESERVE BULLETIN
105 (1983). Codified at 12 CFR § 225.4(a)(15). The Board's decision
was subsequently upheld by the Court of Appeals in Securities
Industry Association v. Board of Governors, 716 F.2d 92 (2nd Cir.
1983). The Board notes that the brokerage activities proposed by
Mortgage Services are similar to those the Board has previously
approved. While the Banking Act of 1933, commonly known as the
Glass-Steagall Act, prohibits a commercial bank from engaging in or
being affiliated with a firm engaged in certain securities activities,
Courts have concluded that a commercial bank may act as a securities
broker, i.e., execute purchases and sales of securities as agent for
customers. Accordingly, the Board does not believe Mortgage Services' proposed brokerage activities with respect to options on
securities issued or guaranteed by the U.S. government and its
agencies and money market instruments would violate the prohibitions of the Glass-Steagall Act.
240 Federal Reserve Bulletin • March 1984
Government and agency securities and on money
market instruments appear to be similar to those of
other brokers. Accordingly, the Board concludes that
Mortgage Services' proposal to broker options on
U.S. Government and agency securities and options
on U.S. and foreign money market instruments is
closely related to banking.
In addition, Mortgage Services proposes to offer
incidental investment advice in connection with its
FCM activities. Mortgage Services will provide general research and advice on market conditions and
trading strategies, client account information, reconciliation of trades and communication linkage between
customers and the exchange floor. These functions
would be performed for Mortgage Services' customers
only as part of its FCM services and would not be
offered separately or on a fee basis. The Board has
determined previously that the offering of investment
advice is incidental to FCM services. 12 Mortgage
Services' proposal to offer advice in connection with
its FCM activities is substantially similar to and consistent with other proposals approved by the Board.
Based on the foregoing, the Board concludes that the
advice Mortgage Services will offer in connection with
its FCM activities is incidental to such activities.
In order to approve this application, the Board
is also required to determine that the performance
of the proposed activities by Mortgage Services
"can reasonably be expected to produce benefits to
the public, such as greater convenience, increased
competition, or gains in efficiency, that outweigh
possible adverse effects, such as undue concentration
of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices"
(12 U.S.C. § 1843(c)(8)).
Consummation of Applicant's proposal would provide added convenience to those clients of Applicant
and its subsidiaries that trade in the cash, forward and
futures markets for these instruments. The Board
expects that the de novo entry of Mortgage Services
into the market for these services would increase the
level of competition among providers of these services
already in operation. Accordingly, the Board concludes that the performance of the proposed activities
by Mortgage Services can reasonably be expected to
produce benefits to the public.
The Board has considered several issues with respect to possible adverse effects. The Board recognizes that the activities of executing futures contracts
and options with regard to futures contracts involve
12. E . g . ,
(1982).
Citicorp,
68
FEDERAL
RESERVE
BULLETIN
776,
778
various types of financial risks and potential conflicts
of interests, and are susceptible to anticompetitive and
manipulative practices. In approving proposals to act
as an FCM, the Board has relied in the past on action
taken by Congress to address these types of possible
adverse effects through the passage of the Commodity
Exchange Act 13 and the creation of the Commodity
Futures Trading Commission ("CFTC"). The Board
has relied also on the regulations adopted by the CFTC
to effectuate the provisions of the Commodity Exchange Act. 14
The Board has placed particular reliance on the
following aspects of Applicant's proposal to act as an
FCM.
1. Mortgage Services generally will not trade futures
for its own account except for purposes of hedging
its positions in securities. 15
2. Mortgage Services shall not, without the prior
consent of the Board, become a clearing member of
any futures or securities exchange whose rules
require the parent corporation of a clearing member
to also become a clearing member, unless the requirement is waived with respect to Applicant.
3. Mortgage Services has committed that it will, in
addition to time-stamping orders of all customers to
the nearest minute, execute all orders, to the extent
consistent with customers' specifications, in strictly
chronological sequence, and that it will execute all
orders with reasonable promptness with due regard
to market conditions.
4. Mortgage Services will not extend credit to customers for the purpose of meeting initial or maintenance margin required of customers, subject to the
limited exception of posting margin on behalf of
customers in advance of prompt reimbursement.
5. Mortgage Services has and will maintain a capitalization fully adequate to meet its own commitments
and commitments of its customers, including its
affiliates.
13. 7 U.S.C. §§ 1-24.
14. 17 CFR § 1.20, 1.25, 1.39 and §§ 1.10-18.
15. The Board notes that Mortgage Services may trade for its own
account to a limited extent and solely for purposes of hedging its
portfolio of U.S. Government and government-backed securities. In
order to insure that Mortgage Services so limits its trading, however,
and does not engage in speculative transactions, the Board expects
Mortgage Services to comply with the Board's Policy Statement
Regarding the Use of Futures, Forward and Standby Contracts,
12 CFR § 225.142. Thus, the policy objectives of its trading must be
specific enough to outline permissible risk-reducing contract strategies and their relationship to Mortgage Services' other business
activities, and sufficiently detailed to permit internal auditors and
examiners to determine whether operations personnel have acted in
accordance with authorized objectives. Operating personnel are expected to be able to describe and document in detail how the contract
positions they have taken contribute to the attainment of Mortgage
Services' stated objectives.
Legal Developments
In addition, in evaluating Applicant's proposal to act
as a broker of options on U.S. Government and
government-backed securities and options on U.S.
and foreign money market instruments, the Board has
taken into account and has relied upon the regulatory
framework established pursuant to law by the SEC for
such trading as well as other prudential considerations.
The Board has considered also the potential for
adverse effects associated with Mortgage Services'
proposed broker/dealer activities with regard to U.S.
government securities. The Board notes that as a
nonbank subsidiary of Applicant, Mortgage Services
would be engaging in underwriting and dealing in
government securities without being subject to many
of the rules that currently apply to Bank's conduct of
the activity and the resulting potential for unsound
banking practices.
Accordingly, the Board expects that Mortgage Services will conduct the proposed activities subject to
the same rules and prudential limitations under which
Bank would conduct such activities. 16 Any breach of
these restrictions by Mortgage Services would constitute an unsafe or unsound banking practice that could
be the subject of formal supervisory action by the
Board.
There is no evidence in the record that consummation of the proposal would result in any effects that
would be adverse to the public interest.
Based upon a consideration of all the relevant facts,
the Board concludes that the balance of the public
interest factors that the Board is required to consider
under section 4(c)(8) is favorable. Accordingly, the
application is hereby approved. This determination is
subject to the conditions set forth in section 225.4(c) of
Regulation Y and to the Board's authority to require
such modification or termination of the activities of a
bank holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with the
provisions and purposes of the Act and the Board's
regulations and orders issued thereunder, or to prevent evasion thereof.
16. For example, member banks by statute are permitted to underwrite certain types of public housing and dormitory bonds of states
and municipalities, provided that the amount of such securities of a
single issuer held by the bank does not exceed ten percent of the
bank's capital and surplus. 12 U.S.C. § 24 Seventh. Such securities
are designated "Type II" securities in regulations of the Comptroller
of the Currency. 12 CFR § 1.3(a). Mortgage Services should not
underwrite, deal in, or hold Type II securities by any issuer in
amounts that would not be permitted if such activities were conducted
by Bank and should not sell securities to trust accounts of affiliated
banks except as permitted by regulations of the Comptroller of the
Currency.
241
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 San Francisco pursuant to delegated authority.
By order of the Board of Governors, effective
December 8, 1983.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, Rice, and Gramley. Absent and not
voting: Chairman Volcker and Governor Teeters.
WILLIAM W . WILES,
[SEAL]
Secretary of the Board
This Order, issued February 29, 1984, corrects
Order issued on December 8, 1983.
an
Orders Issued Under Section 3 and 4 of Bank
Holding Company Act
Barnett Banks of Florida, Inc.,
Jacksonville, Florida
Order Approving Acquisition
Company
of a Bank Holding
Barnett Banks of Florida, Inc., Jacksonville, Florida,
a bank holding company within the meaning of the
Bank Holding Company Act, has applied for the
Board's approval under section 3 of the Act (12 U.S.C.
§ 1842) to acquire the voting shares of Florida Coast
Banks, Inc., Pompano Beach, Florida ("Florida
Coast"), a bank holding company by virtue of its
ownership of Florida Coast Bank, Pompano Beach,
Florida, and Florida Coast Bank of Palm Beach County, West Palm Beach, Florida. Applicant has also
applied for the Board's approval under section 4(c)(8)
of the Act (12 U.S.C. § 1843(c)(8)) to acquire Midlantic/Florida Coast Holdings, Inc., Edison, New Jersey,
and its wholly-owned subsidiary, Florida Coast Midlantic Trust Company, N.A., Lighthouse Point, Florida, which provides the services of a trust company in
Florida.
Notice of the application, affording opportunity for
interested persons to submit comments and views has
been given in accordance with sections 3 and 4 of the
Act. The time for filing comments and views has
expired and the Board has considered the applications
and all comments received, including comments submitted on behalf of Florida Coast, in light of the factors
set forth in section 3(c) of the Act and the considerations specified in section 4 of the Act.
242
Federal Reserve Bulletin • March 1984
Applicant, the largest banking organization in Florida, controls 33 subsidiary banks with approximately
$7.2 billion in total deposits, representing approximately 13.2 percent of the total deposits in commercial
banks in Florida. 1 Florida Coast is the sixteenth largest banking organization in Florida, with two subsidiary banks controlling approximately $500 million in
total deposits, representing 0.9 percent of total deposits in commercial banking organizations in Florida.
Upon acquisition of Florida Coast, Applicant would
continue to be the largest banking organization in
Florida and would increase its share of total commercial bank deposits in Florida to 14.1 percent.
The banking subsidiaries of Florida Coast operate in
the Miami-Fort Lauderdale banking market 2 and the
East Palm Beach banking market.3 Applicant also
operates subsidiary banks in these markets. In the
Miami-Fort Lauderdale banking market, Applicant is
the second largest commercial banking organization
with 10.5 percent of the total deposits in commercial
banks in that market. Florida Coast is the fourteenth
largest commercial banking organization in the MiamiFort Lauderdale banking market and controls 1.8
percent of the deposits in commercial banks in that
market. Upon consummation of the proposal, Applicant would remain the second largest commercial
banking organization in the Miami-Fort Lauderdale
banking market and would control approximately 12.3
percent of the commercial bank deposits in that market. The Miami-Fort Lauderdale banking market is not
concentrated and would remain unconcentrated, with
a Hirshmann-Herfindahl Index of 693, upon consummation of the transaction.
Applicant is the largest commercial banking organization in the East Palm Beach banking market, holding
approximately $470.4 million in deposits in that market
representing approximately 16.1 percent of the total
deposits in commercial banking organizations in that
market.4 Florida Coast holds approximately $134.3
million in deposits in the East Palm Beach banking
market, representing approximately 4.6 percent of the
total market deposits, and is the ninth largest commercial banking organization in the market. Upon consummation of this proposed transaction, Applicant
1. Statewide banking data are as of June 30, 1983.
2. The Miami-Fort Lauderdale banking market is defined as Dade
and Broward counties.
3. The East Palm Beach banking market comprises the eastern
three-fourths of Palm Beach County, excluding the Belle GladePahokee area.
4. East Palm Beach banking market data are as of June 30, 1982,
and have been adjusted to reflect the recently consummated merger of
Sun Banks and Flagship Banks, the divestiture by Barnett of nine
offices in the market in November 1982 in conjunction with its
acquisition of First Marine Banks, Inc., and the recently approved
acquisition of Royal Trust Banks of Florida by Florida National Banks
of Florida.
would remain the largest commercial banking organization in the East Palm Beach banking market, with a
total market share of approximately 20.7 percent of
deposits in commercial banks in the market.
Consummation of the proposed transaction would
eliminate some existing competition in the East Palm
Beach banking market. However, the East Palm
Beach banking market is relatively unconcentrated,
with a four-firm concentration ratio of 50.1 percent
and a current HHI equal to 931. Upon consummation
of the proposed transaction, there would remain 20
commercial banking organizations competing in the
market, the four-firm concentration ratio would increase to 54.7 percent, and the HHI would increase by
148 points to 1079. Accordingly, consummation of the
proposed transaction would not significantly reduce
competition or increase the concentration of resources
in the East Palm Beach banking market.5
Moreover, in view of the significant expansion of
the commercial lending powers of federal thrift institutions authorized in the Garn-St Germain Depository
Institutions Act of 1982, the Board has, in a number of
recent cases, considered the presence and extent of
competition of thrift institutions in the relevant banking market as a mitigating factor. 6 There are 25 savings
and loan associations and savings banks in the East
Palm Beach banking market, including the first, second, third, fifth and sixth largest depository institutions in the market. Together, thrift institutions hold
approximately $4.6 billion in total market deposits,
representing approximately 60.1 percent of the total
deposits in commercial banks and thrift institutions in
the market. The size of thrift institutions in the East
Palm Beach banking market reflects in part the residential and consumer nature of this market. In this
regard, commercial banks operating in this market
concentrate a significantly higher proportion of their
loan portfolio in residential real estate and consumer
5. Applicant has provided deposit data as of March 31, 1983, based
on a telephone survey of the East Palm Beach banking market
conducted by the Florida Bankers Association. The Board believes
that the most accurate market data available is the data collected and
provided by the FDIC and verified and edited for consistency by the
Board, which is reflected in the figures above. However, even if the
data provided by Applicant were used, the East Palm Beach banking
market is unconcentrated, with a four-firm concentration ratio of
48.48 percent, and an HHI of 869, and Applicant's market share would
be 17.29 percent. After consummation of the proposed acquisition,
Applicant's market share would increase to 22.1 percent, and the
market would remain relatively unconcentrated, with a four-firm
concentration ratio of 53.56 percent, and the market HHI would
increase by 176 points to 1045. Even on the basis of these data, the
Board does not believe that the proposal would significantly reduce
competition in the market.
6. See, e.g., Monmouth Financial Services, Inc., 69 FEDERAL
RESERVE BULLETIN 867 (1983); Barnett Banks of Florida, Inc., 69
FEDERAL RESERVE BULLETIN 44 (1983); First Tennessee National
Corporation, 69 FEDERAL RESERVE BULLETIN 298 (1983); Midlantic
Banks,
Inc.,
6 9 FEDERAL RESERVE BULLETIN 6 5 2 ( 1 9 8 3 ) .
Legal Developments
loans than commercial banks nationally. Accordingly,
the Board deemed it appropriate to consider the presence of thrift institutions in the East Palm Beach
banking market as a mitigating factor in assessing the
competitive effects of this transaction. 7
Consequently, while consummation of the proposal
would eliminate some existing competition in the
relevant banking markets, the Board has determined
that, in view of all of the facts of record, consummation of this proposal would not have a significant
adverse effect on existing or potential competition in
the Miami-Fort Lauderdale banking market or the
East Palm Beach banking market. Thus, competitive
effects are consistent with approval.
The financial and managerial resources of Applicant
and its subsidiary banks are regarded as generally
satisfactory and their future prospects appear favorable. 8 The financial and managerial resources and
future prospects of Florida Coast and its subsidiary
banks are also satisfactory. Accordingly, considerations relating to banking factors are consistent with
approval. Although no new banking services would be
introduced to the relevant banking markets as a result
of the proposed transaction, considerations relating to
convenience and needs of the communities to be
served are consistent with approval. Based on the
foregoing and all the facts of record, it is the Board's
judgment that consummation of the transaction would
be consistent with the public interest.
Applicant has also applied, pursuant to section
4(c)(8) of the Act, to acquire Midlantic/Florida Coast
Holdings, Inc., and its wholly-owned subsidiary, Florida Coast Midlantic Trust Company, N.A., Lighthouse Point, Florida, which provides trust company
services. N o adverse competitive effects would result
from the proposed acquisition of Midlantic/Florida
Coast Holdings, Inc., and its subsidiary, because the
overlapping market share is not significant in comparison with the total market volume for trust services.
Moreover, there are a large number of competitors for
trust services in Florida and in the relevant markets,
and elimination of Applicant or Florida Coast as a
competitor for trust services would not have any
significant adverse effects on competition. Accordingly, it does not appear that acquisition of the nonbanking subsidiaries of Florida Coast would have any
significant effect upon existing or potential competition in any relevant area.
Furthermore, there is no evidence in the record to
indicate that approval of this proposal would result in
undue concentration of resources, decreased or unfair
competition, conflicts of interests, unsound banking
practices, or other adverse effects on the public interest. Accordingly, the Board has determined that the
balance of the public interest factors it must consider
under section 4(c)(8) of the Act is favorable and
consistent with approval of this application.
Based on the foregoing and all of the other facts of
record, the Board has determined that the applications
under sections 3(a)(3) and 4(c)(8) of the Act should be
and hereby are approved. The transaction shall not be
consummated before the thirtieth day following the
effective date of this Order, or later than three months
after the effective date of this Order, unless such
period is extended for good cause by the Board or by
the Federal Reserve Bank of Atlanta, pursuant to
delegated authority.
By order of the Board of Governors, effective
February 15, 1984.
Voting for this action: Chairman Volcker and Governors
Wallich, Partee, Teeters, Rice, and Gramley. Absent and not
voting: Governor Martin.
JAMES MCAFEE,
[SEAL]
7. If, to reflect the competitive influence by thrift institutions in the
market, the Board were to include only 10 percent of the deposits held
by thrift institutions operating in the market, the market would be
unconcentrated, with an HHI of 666, and, upon consummation of the
proposed transaction, would remain unconcentrated with an increase
in the HHI of 112 points to 778.
8. In this regard, Florida Coast contends that shares of voting stock
of Florida Coast held by Mr. Dennis O'Neil, Mr. James Walter, Mr.
G. William Wilde, and Banco de Credito Bank and Trust Company are
controlled by, and should be attributed to, Barnett. The Board has
reviewed the rights associated with the preferred shares and options
involved and, based on all of the facts of record, has determined that
Barnett has not violated the BHC Act and that the actions described
by Florida Coast do not warrant denial of this application. The Board
has also reviewed the facts and circumstances surrounding Barnett's
purchase of preferred stock of Florida Coast. Because Barnett immediately filed an application to convert these shares, the Board does not
believe that the transaction is inconsistent with the BHC Act, Regulation Y, or the Board's policy statement regarding nonvoting equity
investments. The Board also believes that the facts of record regarding these matters do not warrant a formal hearing, and denies Florida
Coast's request for a formal hearing.
243
Associate
Secretary of the Board
Orders Issued Under Section 5 of Bank
Corporation Act
Service
The Indiana National Bank,
American Fletcher National Bank and Trust
Company, and
Merchants National Bank and Trust Company,
all of Indianapolis, Indiana
Order Approving Acquisition
Corporation
of AIM Bank Service
Indiana National Bank ("Indiana National"), American Fletcher National Bank and Trust Company
244
Federal Reserve Bulletin • March 1984
("American Fletcher"), and Merchants National Bank
and Trust Company ("Merchants National") all of
Indianapolis, Indiana, and all national banks chartered
by the Comptroller of the Currency (collectively,
"Banks"), have applied for the Board's approval
under section 5(b) of the Bank Service Corporation
Act, as amended ("BSCA") (12 U.S.C. § 1865(b)),
each to acquire one-third of the voting shares of a bank
service corporation, AIM Bank Service Corporation,
Indianapolis, Indiana ("Company"), a joint venture to
provide back-up data processing facilities and services
to Banks and to other banking and nonbanking entities.
Section 4(f) of the BSCA authorizes bank service
corporations, with the prior approval of the Board, to
engage at any geographic location in any activity that
the Board has determined by regulation to be closely
related to banking and thus permissible for bank
holding companies under the Bank Holding Company
Act (12 U.S.C. § 1841 et seq.). The BSCA also
authorizes any bank, with the prior approval of the
Board, to invest in bank service corporations engaged
in those activities at such locations. The Board has
previously determined, under section 225.25(b)(7) of
Regulation Y (12 CFR § 225.25(b)(7)), that the provision of data processing facilities and services to others
is such a permissible activity.
Initially, Company would acquire from Indiana
Properties, Inc., a wholly-owned subsidiary of Indiana
National, an abandoned warehouse which it would
remodel to create a stand-by data processing facility
containing adequate electrical, mechanical, and ventilation capacity to service independently three separate
data processing operations, if ever required.1 Company thereafter would enter into contracts with each
owner Bank pursuant to which each would pay a fee
for the right to use the facility in the event of a disaster
or other emergency affecting its primary data processing facility. The facility is meant primarily to service
the needs of Banks in the event of such a disaster.
Except for times of disaster, the facility would remain
empty.
To the extent that excess capacity would exist at the
facility during such emergencies, Company also would
contract with other banking and nonbanking entities to
utilize the facility to process and transmit financial,
banking or economic data only. Availability for the
facility would be subject to prior use, as well as to a
series of contractually stated priorities designed to
assure reasonable access by all parties, while maintaining the facility in its primary function as back-up
support for its owner Banks. Company would not
provide any data processing hardware or software.
Instead, Company's customers would utilize their own
equipment at the facility for the duration of an emergency, and remove such equipment thereafter. Under
these circumstances, the Board believes that Applicant's proposed activities are permissible activities
under § 225.25(b)(7) of Regulation Y.
Section 5(c) of the BSCA authorizes the Board, in
acting upon applications to invest in bank service
corporations, to consider the financial and managerial
resources of the institutions involved. The Board has
reviewed the financial and managerial resources and
future prospects of the Banks and Company, including
the financial capabilities of the Banks to make a
proposed investment under this Act, and has determined that such factors are consistent with approval.
The Board also is required to assess the adverse
effects which may arise from consummation of a
proposal under this section, such as undue concentration of resources, unfair or decreased competition,
conflicts of interests, or unsafe or unsound banking
practices. (12 U.S.C. § 1865(c)). Except for the facilities and services to be provided through Company, no
Applicant offers the proposed data processing facilities
and services to affiliated and nonaffiliated institutions.
Inasmuch as the proposed venture is to commence
de novo, no existing competition among the co-venturers in this line of commerce would be eliminated.
The Board also has considered the effects of consummation of this proposal on probable future competition in the provision of data processing facilities and
services, particularly in light of the fact that this
application involves the use of a joint venture to
engage in the relevant activities. The Board notes that
Applicants are the three largest financial institutions in
the Indianapolis, Indiana, banking market 2 and presumably could offer these back-up facilities and services independently. However, Applicants have chosen not to engage in such activities. Moreover, the
market for such back-up data processing services is
not regarded as concentrated. Additionally, barriers to
entry into this activity are low, as evidenced by the
small initial investment required of Applicants and the
widespread availability of the technical and managerial
skills needed to engage in this activity. In this light, the
loss of these potential entrants into the market for
1. Applicant proposes to establish this facility in order to conform
to the Comptroller's policy regarding banks' contingency planning for
data processing support. See Office of the Comptroller of the Currency, Banking Circular No. 177 (June 9, 1983).
2. As of September 30, 1983, Indiana National held assets of $2.7
billion, American Fletcher had assets of 3.3 billion, and Merchant
National's assets totalled $2.0 billion.
Legal Developments
back-up data processing facilities and services does
not raise any serious concerns. Accordingly, the
Board concludes that consummation of the proposed
joint venture would not have any significantly adverse
effects upon probable future competition.
The Board also has reviewed this proposal to ensure
that no unfair competitive practices, violations of law
or other substantially adverse effects would result
from consummation of this proposal. In this regard,
the Board notes that Company intends to contract with
individual users in such a manner so as to assure
reasonable access by all parties. Each contract, moreover, will state that no user is obliged to purchase or
utilize any other services of Company or its three
owner Banks. Upon a review of the record, therefore,
the Board concludes that there is no evidence of
adverse effects which would warrant disapproval of
the application. Moreover, the Board notes that posi-
ORDERS APPROVED
By the Board of
245
tive public benefits will flow from the increased availability of such stand-by data processing facilities and
services in the event of a natural disaster.
Accordingly, this application is approved, subject to
the Board's authority to require such modification or
termination of the activities of a bank service corporation as the Board finds necessary to assure compliance
with the provisions and purposes of the Bank Service
Corporation Act or to prevent evasions thereof.
By order of the Board of Governors, effective
February 7, 1984.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, Rice, and Gramley. Abstaining from
this action: Governor Teeters. Absent and not voting: Chairman Volcker.
JAMES M C A F E E ,
[SEAL]
UNDER BANK HOLDING COMPANY
Associate
Secretary
of the Board
ACT
Governors
During February 1984 the Board of Governors approved the applications listed below. Copies are available upon
request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3
Applicant
Angola Bancorporation, Inc.,
Angola, Indiana
Central Service Corporation,
Enid, Oklahoma
First State Banking Corporation,
Alcester, South Dakota
Kansas City Bancshares, Inc.,
Kansas City, Missouri
Olathe Financial Services Corporation,
Olathe, Kansas
Security Shares, Inc.,
Mankato, Minnesota
Bank(s)
The First National Bank of Angola,
Angola, Indiana
Nichols Hills Bancorporation, Inc.,
Oklahoma City, Oklahoma
State Bank of Alcester,
Alcester, South Dakota
Traders Bank of Kansas City,
Kansas City, Missouri
The Heritage Bank of Olathe,
Olathe, Kansas
Security State Bank of Mankato,
Mankato, Minnesota
Board action
(effective
date)
February 13, 1984
February 7, 1984
February 28, 1984
February 13, 1984
February 2, 1984
February 14, 1984
246
Federal Reserve Bulletin • March 1984
By Board of
Governors
Section 4
Applicant
C.C.B., Inc.,
Central Colorado Company,
Central Bancorporation, Inc.,
Denver, Colorado
By Federal Reserve
E
Bank
Central Bank at Centennial, N.A.,
Littleton, Colorado
^
v e
February 1, 1984
Banks
Recent applications have been approved by the Federal Reserve Banks as listed below, copies of the orders are
available upon request to the Reserve Banks.
Section 3
Applicant
Banco Zaragozano, S.A.,
Madrid, Spain
Banzano International, N . V . ,
Curacao, Netherlands Antilles
Banzano, B.V.,
Amsterdam, Netherlands
Miami National Bancorp,
Coral Gables, Florida
Bancshares of Ripley, Inc.,
Ripley, Tennessee
Banks of Iowa, Inc.,
Des Moines, Iowa
The Baraboo Bancorporation,
Inc.,
Baraboo, Wisconsin
Bezanson Corporation,
Cedar Rapids, Iowa
Broward Bancorp,
Lauderdale Lakes, Florida
Broward Bank,
Lauderdale Lakes, Florida
Camino Real Bancshares, Inc.,
Carrizo Springs, Texas
Coronado, Inc.,
Sterling, Kansas
County Bankshares, Inc.,
Blue Island, Illinois
East Tennessee Bancorp, Inc.,
Knoxville, Tennessee
Bank(s)
Reserve
Bank
Effective
date
International Bank of Miami,
Miami, Florida
Atlanta
February 7, 1984
Bank of Ripley,
Ripley, Tennessee
Commercial Trust & Savings
Bank,
Charles City, Iowa
Green Lake State Bank,
Green Lake, Wisconsin
St. Louis
February 6, 1984
Chicago
February 17, 1984
Chicago
February 16, 1984
Chicago
February 13, 1984
Atlanta
February 9, 1984
Atlanta
February 9, 1984
Dallas
February 16, 1984
Kansas City
February 6, 1984
Chicago
February 10, 1984
Atlanta
January 20, 1984
Jefco, Inc.,
Cedar Rapids, Iowa
Broward Bank,
Lauderdale Lakes, Florida
Broward Interim Bank,
Lauderdale Lakes, Florida
Frontier State Bank,
Eagle Pass, Texas
Landmark Federal Savings
Association,
Dodge City, Kansas
Heritage Bank of Oak Lawn,
Oak Lawn, Illinois
Bank of Commerce,
Morristown, Tennessee
Legal Developments
247
Section 3—Continued
Applicant
Eden Valley Bancshares, Inc.,
Eden Valley, Minnesota
Elkton Bancorp, Inc.,
Elkton, Kentucky
F.A. Bankshares, Inc.,
Monroe, Georgia
Farmers Bancorp of Sturgis,
Inc.,
Sturgis, Kentucky
Fessenden Bancshares, Inc.,
Fessenden, North Dakota
First American Bancshares,
Inc.,
North Little Rock, Arkansas
First Bancorp of Kansas,
Wichita, Kansas
First Breckinridge Bancshares,
Inc.,
Irvington, Kentucky
First Commonwealth Financial
Corporation,
Indiana, Pennsylvania
First Farmers Bancshares, Inc.,
Portland, Tennessee
First Hey worth Corp.,
Hey worth, Illinois
First National Financial
Corporation,
Marinette, Wisconsin
First of Austin Bancshares,
Inc.,
Austin, Texas
First Service Bancshares, Inc.,
Greenville, Kentucky
First Virginia Banks, Inc.,
Clint wood, Virginia
First Western Pennbancorp,
Inc.,
New Castle, Pennsylvania
FNT Bancorp,
Sunbury, Pennsylvania
G.S.B. Financial Corp.,
Indianapolis, Indiana
Keystone Bancshares, Inc.,
Kankakee, Illinois
Bank(s)
Reserve
Bank
Effective
date
Minneapolis
February 6, 1984
St. Louis
February 13, 1984
Atlanta
February 10, 1984
St. Louis
February 6, 1984
Minneapolis
February 3, 1984
St. Louis
February 8, 1984
Kansas City
February 3, 1984
St. Louis
February 7, 1984
Deposit Bank,
DuBois, Pennsylvania
Cleveland
February 16, 1984
The Farmers Bank,
Portland, Tennessee
Farmers State Bank of Hey worth,
Hey worth, Illinois
The First National Bank of
Marinette,
Marinette, Wisconsin
First National Bank,
Austin, Texas
Atlanta
February 10, 1984
Chicago
February 14, 1984
Chicago
February 13, 1984
Dallas
February 10, 1984
St. Louis
February 2, 1984
Richmond
February 10, 1984
Cleveland
February 2, 1984
Philadelphia
February 3, 1984
Chicago
February 10, 1984
Chicago
February 10, 1984
State Bank in Eden Valley,
Eden Valley, Minneosta
Elkton Bank and Trust Company,
Elkton, Kentucky
First American Bank of Walton,
Monroe, Georgia
Farmers State Bank,
Sturgis, Kentucky
The First National Bank of
Fessenden,
Fessenden, North Dakota
Grand National Bank,
Hot Springs, Arkansas
Stockgrowers State Bank,
Ashland, Kansas
The First National Bank
of Neodesha,
Neodesha, Kansas
First State Bank,
Irvington, Kentucky
First State Bank of Greenville,
Greenville, Kentucky
Virginia Citizens Bank,
Clint wood, Virginia
First National Bank of Western
Pennsylvania,
New Castle, Pennsylvania
First National Trust Bank,
Sunbury, Pennsylvania
The Garrett State Bank,
Garrett, Indiana
Illinois Trust & Savings Bank,
Ottawa, Illinois
248
Federal Reserve Bulletin • March 1984
Section 3—Continued
Applicant
Lexington Bancshares, Inc.,
Lexington, Nebraska
Maries County Bancorp, Inc.,
Vienna, Missouri
Midwest Bancshares, Inc.,
Edina, Minnesota
Midwest Financial Group, Inc.
Peoria, Illinois
Minier Financial, Inc.,
Minier, Illinois
Moscow Bancshares, Inc.,
Moscow, Tennessee
National Bancshares, Inc.,
Oklahoma City, Oklahoma
Northern of Tennessee Corp.,
Clarksville, Tennessee
Northside Financial
Corporation,
San Antonio, Texas
Pacific Capital Bancorp,
Monterey, California
Penn Central Bancorp, Inc.,
Huntingdon, Pennsylvania
Peoples Bancorp of Belleville,
Inc.,
Belleville, Kansas
Premier Bancorporation, Inc.,
Libertyville, Illinois
Bank(s)
Seven V Banco, Inc.,
Callaway, Nebraska
Maries County Bank,
Vienna, Missouri
Belle State Bank,
Belle, Missouri
State Bank of Sleepy Eye,
Sleepy Eye, Minnesota
United Bancorporation, Inc.,
Rockford, Illinois
East Riverside Inc.,
Rockford, Illinois
Oregon Corporation,
Rockford, Illinois
Rochelle Bancorporation,
Rochelle, Illinois
First Farmer's State Bank of
Minier,
Minier, Illinois
Moscow Savings Bank,
Moscow, Tennessee
American National Bancshares,
Inc.,
Midwest City, Oklahoma
First Southern Bank,
Mt. Juliet, Tennessee
Northwest Bank, N.A.,
San Antonio, Texas
First National Bank of Monterey
County,
Monterey, California
Penn Central National Bank,
Huntingdon, Pennsylvania
The Peoples National Bank of
Belleville,
Belleville, Kansas
Golf Mill State Bank,
Niles, Illinois
Grayslake National Bank,
Gray slake, Illinois
Libertyville National Bank,
Liberty ville, Illinois
First National Bank of
Mundelein,
Mundelein, Illinois
The Premier Bank of Vernon
Hills,
Vernon Hills, Illinois
Reserve
Bank
Effective
date
Kansas City
February 6, 1984
St. Louis
February 10, 1984
Minneapolis
February 2, 1984
Chicago
February 17, 1984
Chicago
February 13, 1984
St. Louis
February 10, 1984
Kansas City
February 1, 1984
Atlanta
February 10, 1984
Dallas
February 10, 1984
San Francisco
February 8, 1984
Philadelphia
February 10, 1984
Kansas City
January 17, 1984
Chicago
February 9, 1984
Legal Developments
249
Section 3—Continued
Applicant
Rio Grande Bancshares, Inc.,
Edinburg, Texas
River Forest Bancorp,
River Forest, Illinois
Saline Bancorp., Inc.,
Harrisburg, Illinois
Second National Corporation,
Richmond, Indiana
Shannon Bancorp, Inc.,
Shannon, Illinois
Shawneetown Bancorp, Inc.,
Shawneetown, Illinois
Silver Run Bancorporation,
Inc.,
Red Lodge, Montana
Southern Bancorp, Inc.,
Waycross, Georgia
Southern Illinois Bancshares,
Inc.,
Murphysboro, Illinois
Southern Jersey Bancorp,
Bridgeton, New Jersey
Southern National Bancshares,
Inc.,
Decatur, Georgia
Spring Woods Bancshares, Inc.,
Houston, Texas
Swea City Bancorporation,
Swea City, Iowa
University National Bancshares
of San Antonio, Inc.,
San Antonio, Texas
Valley Bank Holding Corpany,
Security, Colorado
Warrensburg Bancshares, Inc.,
Chillicothe, Missouri
West Central Illinois Bancorp,
Inc.,
Peoria, Illinois
Bank(s)
First State Bank & Trust
Company,
Edinburg, Texas
Lincoln National Bank,
Chicago, Illinois
The Bank of Harrisburg,
Harrisburg, Illinois
Bentonville State Bank,
Bentonville, Indiana
First State Bank of Shannon,
Shannon, Illinois
First National Bank in Golconda,
Golconda, Illinois
The United States National Bank
of Red Lodge,
Red Lodge, Montana
Mount Vernon Bank,
Mount Vernon, Georgia
The Brookport National Bank,
Brookport, Illinois
The Farmers and Merchants
National Bank of Bridgeton,
Bridgeton, New Jersey
The First National Bank of
DeKalb County,
Decatur, Georgia
Spring Woods Bank,
Houston, Texas
Swea City State Bank,
Swea City, Iowa
Castle Hills National Bank,
San Antonio, Texas
Mountain National Bank,
Woodland Park, Colorado
Community Bank of Warrensburg,
Warrensburg, Missouri
The National Bank of Monmouth,
Monmouth, Illinois
Reserve
Bank
Effective
date
Dallas
February 17, 1984
Chicago
February 17, 1984
St. Louis
February 7, 1984
Chicago
February 7, 1984
Chicago
February 13, 1984
St. Louis
February 14, 1984
Minneapolis
February 22, 1984
Atlanta
February 3, 1984
St. Louis
February 14, 1984
Philadelphia
February 10, 1984
Atlanta
February 17, 1984
Dallas
February 10, 1984
Chicago
February 21, 1984
Dallas
February 17, 1984
Kansas City
February 6, 1984
Kansas City
February 10, 1984
Chicago
February 13, 1984
Section 4
. *.
,
Applicant
Bovey Financial Corporation,
Bovey, Minnesota
Nonbanking
company
Bovey Insurance Service,
Bovey, Minnesota
Reserve
„ .
Bank
Minneapolis
Effective
,^
date
February 3, 1984
250
Federal Reserve Bulletin • March 1984
Section 4—Continued
Nonbanking
company
Applicant
CoreState Financial Corp,
East Aurora, N e w York
First Union Corporation,
Charlotte, North Carolina
Manly State Bancshares, Inc.,
Mason City, Iowa
National City Bancorporation,
Minneapolis, Minnesota
Reserve
Bank
Sterling Finance Corporation,
East Aurora, New York
Salem Securities, Inc.,
Winston-Salem, North Carolina
Hanlontown Insurance Agency,
Hanlontown, Iowa
Diversified Discount and Acceptance Corporation,
Minneapolis, Minnesota
Effective
date
Philadelphia
February 10, 1984
Richmond
February 10, 1984
Chicago
February 14, 1984
Minneapolis
February 6, 1984
Sections 3 and 4
Bank(s)/Nonbanking
Company
Applicant
River Oaks Bancshares, Inc.,
Houston, Texas
St. Clair Agency, Inc.,
St. Clair, Minnesota
Union Bankshares, Inc.
Mena, Arkansas
ORDERS APPROVED
Reserve
Bank
River Oaks Bank & Trust
Company,
Houston, Texas
River Oaks Trust Company,
Houston, Texas
River Oaks Trust Corporation,
Houston, Texas
St. Clair State Bank,
St. Clair, Minnesota
general insurance agency
activities
The Union Bank of Mena,
Mena, Arkansas
real estate appraisal
UNDER BANK MERGER
Effective
date
Dallas
February 17, 1984
Minneapolis
February 14, 1984
St. Louis
February 2, 1984
ACT
By the Board of Governors
Applicant
United Virginia Bank,
Richmond, Virginia
Bank
Bank of Virginia,
Richmond, Virginia
Effective
date
February 7, 1984
Legal Developments
PENDING CASES INVOLVING
THE BOARD OF GOVERNORS
This list of pending cases does not include suits against the Federal Reserve
Governors is not named a party.
Dimension Financial Corporation, et al. v. Board of
Governors, filed December 1983, U.S.C.A. for the
Tenth Circuit.
Omaha Bankers Association
v. Federal
Reserve
Board, filed December 1983, U.S.C. A. for the Tenth
Circuit.
Sunuorph Aeronautical
Corp. v. Federal
Reserve
Board, filed November 1983, U.S.D.C. for the
Northern District of Ohio.
Independent Insurance Agents of America, Inc. and
Independent Insurance Agents of Missouri, Inc. v.
Board of Governors, filed June 1983, U.S.C. A. for
the Eighth Circuit (two cases).
The Committee for Monetary Reform, et al., v. Board
of Governors, filed June 1983, U.S.D.C. for the
District of Columbia.
Securities Industry Association v. Board of Governors, et al., filed February 1983, Supreme Court.
Flagship Banks, Inc. v. Board of Governors, filed
January 1983, U.S.D.C. for the District of Columbia, U.S.C.A. for the District of Columbia Circuit.
Flagship Banks, Inc. v. Board of Governors, filed
October 1982, U.S.D.C. for the District of Columbia.
Wyoming Bancorporation v. Board of Governors, filed
May 1982, U.S.C.A. for the Tenth Circuit.
251
Banks in which the Board of
First Bancorporation
v. Board of Governors, filed
April 1982, U.S.C.A. for the Tenth Circuit.
Jolene Gustafson v. Board of Governors, filed March
1982, U.S.C.A. for the Fifth Circuit.
Edwin F. Gordon v. Board of Governors, et al., filed
October 1981, U.S.C.A. for the Eleventh Circuit
(two consolidated cases).
Allen Wolf son v. Board of Governors, filed September
1981, U.S.D.C. for the Middle District of Florida.
Public Interest Bounty Hunters v. Board of Governors, et al., filed June 1981, U.S.C.A. for the
Eleventh 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 D e c e m b e r 1980,
U.S.C.A. for the First Circuit.
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, Supreme Court.
253
Directors of
Federal Reserve Banks and Branches
The following list of directors of Federal Reserve
Banks and Branches shows the principal business
affiliation, the class of directorship, and the expiration
date of the term for each director. Each Federal
Reserve Bank has nine members on its board of
directors: three Class A and three Class B directors,
who are elected by the stockholding member banks,
and three Class C directors, who are appointed by the
Board of Governors of the Federal Reserve System.
All Federal Reserve Bank directors are chosen without discrimination on the basis of race, creed, color,
sex, or national origin. Class A directors represent the
stockholding member banks in each Federal Reserve
District. Class B and Class C directors represent the
public and are chosen with due, but not exclusive,
consideration to the interests of agriculture, commerce, industry, services, labor, and consumers; they
may not be officers, directors, or employees of any
bank, and Class C directors may not be stockholders
of any bank.
For the purpose of electing Class A and Class B
directors, the member banks of each Federal Reserve
DISTRICT
District are classified by the Board of Governors into
three groups, each of which consists of banks with
similar capitalization; each group then elects one Class
A and one Class B director. Class C directors are
appointed by the Board of Governors. The Board of
Governors designates one Class C director as Chairman of the board of directors and Federal Reserve
Agent of each District Bank and appoints another as
Deputy Chairman.
Federal Reserve Branches have either five or seven
directors, a majority of whom are appointed by the
board of directors of the parent Federal Reserve Bank;
the others are appointed by the Board of Governors of
the Federal Reserve System. One of the directors
appointed by the Board of Governors at each Branch
is designated annually as Chairman of the board of that
Branch in a manner the Federal Reserve Bank prescribes.
In this list of the directors, footnote 1 denotes a
chairman of the Bank's board; footnote 2, a deputy
chairman; and footnote 3, a director whose service
began in 1983.
1—BOSTON
Class A
James Stokes Hatch
William W. Treat
William S. Edgerly3
President and Chief Executive Officer, The Canaan National Bank,
Canaan, Connecticut
President, Bank Meridian, N.A., Hampton, New Hampshire
Chairman and President, State Street Bank and Trust Company,
Boston, Massachusetts
1984
1985
1986
Class B
George N. Hatsopoulos
Matina S. Horner
Joseph A. Baute
Chairman of the Board and President, Thermo Electron Company,
Waltham, Massachusetts
President, Radcliffe College, Cambridge, Massachusetts
Chairman and Chief Executive Officer, Markem Corporation,
Keene, New Hampshire
1984
Vice Chairman of the Board of Directors, Greylock Management
Corporation, Boston, Massachusetts
General Counsel, National Association for the Advancement of
Colored People, New York, New York
Harrington Company, Peabody, Massachusetts
1984
1985
1986
Class C
Robert P. Henderson 1
Thomas I. Atkins2
Michael J. Harrington
1985
1986
254
Federal Reserve Bulletin • March 1984
DISTRICT
2—NEW
Term
expires
YORK
Dec. 31
Class A
President, The National Bank of Sussex County, Branchville,
New Jersey
Chairman of the Board, Bankers Trust Company, New York,
New York
Chairman of the Board, United Jersey Bank, Hackensack,
New Jersey
Robert A. Rough
Alfred Brittain
T. Joseph Semrod3
1984
1985
1986
Class B
Chairman of the Board, Allied Chemical Corporation, Morristown,
New Jersey
President and Chief Executive Officer, Union Pacific Corporation,
New York, New York
Chairman of the Board and Chief Executive Officer, International
Business Machines Corporation, Armonk, New York
William S. Cook
John R. Opel
1984
Senior Vice President, R.H. Macy & Company, Inc., New York,
New York
President, New York University, New York, New York
Chancellor, State University of New York System, Albany,
New York
Edward L. Hennessy, Jr.
1984
1985
1986
Class C
Gertrude G. Michelson 2
John Brademas1
Clifton R. Wharton, Jr.
—BUFFALO
Appointed
Frederick G. Ray
Donald I. Wickham
Herbert Fort3
Appointed
by Board of
George L. Wessel
M. Jane Dickman1
Laval S. Wilson3
DISTRICT
BRANCH
by Federal Reserve
Edward W. Duffy
1985
1986
Bank
Chairman of the Executive Committee, Marine Midland Bank,
N.A., Buffalo, New York
Chairman, President and Chief Executive Officer, Rochester
Savings Bank, Rochester, New York
President, Tri-Way Farms, Inc., Stanley, New York
President, The Bath National Bank, Bath, New York
1984
1985
1985
1986
Governors
President, Buffalo AFI^CIO Council, Buffalo, New York
Partner, Touche Ross & Co., Buffalo, New York
Superintendent of Schools, City School District, Rochester,
New York
1984
1985
1986
3—PHILADELPHIA
Class A
Douglas Eugene Johnson
JoAnne Brinzey
John H. Walther3
Chairman and President, Ocean County National Bank, Point
Pleasant Beach, New Jersey
Cashier and Chief Executive Officer, The First National Bank at
Gallitzin, Gallitzin, Pennsylvania
Chairman of the Board, New Jersey National Bank, Trenton,
New Jersey
1984
1985
1986
Directors of Federal Reserve Banks and Branches
DISTRICT
255
Term
expires
Dec. 31
3—CONTINUED
Class B
Chairman and Chief Executive Officer, John Wanamaker,
Philadelphia, Pennsylvania
Chairman of the Board and Chief Executive Officer, Eberhard
Faber, Inc., Wilkes-Barre, Pennsylvania
Dean and Professor of Law, Temple University Law School,
Philadelphia, Pennsylvania
Eberhard Faber, IV
Carl E. Singley 3
1984
Chairman of the Board, Hunt Manufacturing Company,
Philadelphia, Pennsylvania
President and Chief Executive Officer, Delmarva Power & Light
Company, Wilmington, Delaware
Partner, Dechert Price & Rhoads, Philadelphia, Pennsylvania
Richard P. Hauser
1984
1985
1986
Class C
George E. Bartol, III
Nevius M. Curtis2
Robert M. Landis1
DISTRICT
1985
1986
4—CLEVELAND
Class A
President and Chief Executive Officer, Independent State Bank of
Ohio, Columbus, Ohio
President, First-Knox National Bank, Mount Vernon, Ohio
Chairman and Chief Executive Officer, Mellon Bank, Pittsburgh,
Pennsylvania
William A. Stroud
J. David Barnes
1984
Chairman of the Board and President, Mercury Instruments, Inc.,
Cincinnati, Ohio
President, John W. Kessler Company, Columbus, Ohio
Chairman and Chief Executive Officer, Ashland Oil, Inc.,
Ashland, Kentucky
Raymond D. Campbell
1984
1985
1986
Class B
Richard D. Hannan
John W. Kessler
John R. Hall3
1985
1986
Class C
E. Mandell de Windt2
William H. Knoell 1
Chairman of the Board, Eaton Corporation, Cleveland, Ohio
President and Chief Executive Officer, Cyclops Corporation,
Pittsburgh, Pennsylvania
1984
1986
Vacancy
—CINCINNATI
Appointed
BRANCH
by Federal Reserve
Richard J. Fitton
Sherrill Cleland
Clement L. Buenger
Vernon J. Cole 3
Bank
President and Chief Executive Officer, First National Bank of
Southwestern Ohio, Hamilton, Ohio
President, Marietta College, Marietta, Ohio
President, The Fifth Third Bank, Cincinnati, Ohio
Executive Vice President and Chief Executive Officer, Harlan
National Bank, Harlan, Kentucky
1984
1984
1985
1986
256
Federal Reserve Bulletin • March 1984
DISTRICT
Appointed
4—CONTINUED
by Board of
Governors
Owner, Dunreath Farm, Lexington, Kentucky
President, Sisters of Charity Health Care Systems, Inc.
Cincinnati, Ohio
Don Ross
Sister Grace Marie Hiltz
Term
expires
Dec. 31
1984
1985
Vacancy
—PITTSBURGH
Appointed
by Federal Reserve
Robert C. Milsom
James S. Pasman, Jr.
G. R. Rendle
3
by Board of
1984
1984
1985
1986
Governors
Milton A. Washington3
Robert S. Kaplan
Milton G. Hulme, Jr.1
DISTRICT
Bank
President, Pittsburgh National Bank, Pittsburgh, Pennsylvania
Vice Chairman, Aluminum Company of America, Pittsburgh,
Pennsylvania
President and Chief Executive Officer, Century National Bank •
Trust Co., Rochester, Pennsylvania
President and Chief Executive Officer, Gallatin National Bank,
Uniontown, Pennsylvania
A. Dean Heasley
Appointed
BRANCH
President and Chief Executive Officer, Allegheny Housing
Rehabilitation Corporation, Pittsburgh, Pennsylvania
Dean, Graduate School of Industrial Administration,
Carnegie-Mellon University, Pittsburgh, Pennsylvania
President and Chief Executive Officer, Mine Safety Appliances
Company, Pittsburgh, Pennsylvania
1984
Chairman and Chief Executive Officer, United Virginia Bankshares
Inc. and United Virginia Bank, Richmond, Virginia
President and Chief Executive Officer, Sandy Springs National
Bank and Savings Institution, Sandy Springs, Maryland
President and Chief Executive Officer, Greensboro National Bank,
Greensboro, North Carolina
1984
1985
1986
5—RICHMOND
Class A
Joseph A. Jennings
Willard H. Derrick
Robert S. Chiles, Sr.3
1985
1986
Class B
Paul G. Miller
George Deane Johnson,
Jr.3
Thomas B. Cookerly 3
Director, Commercial Credit Company, Baltimore, Maryland
Partner, Johnson, Smith, Hibbard, Cleveland, Wildman and
Dennis, Spartanburg, South Carolina
President, Broadcast Division, Allbritton Communications,
Washington, D.C.
1984
1985
Chairman of the Board and Chief Executive Officer, Duke Power
Company, Charlotte, North Carolina
President, Building and Construction Trades Department,
AFL-CIO, Washington, D.C.
President, Kaufman and Canoles, Norfolk, Virginia
1984
1986
Class C
William S. Lee, III1
Robert A. Georgine
Leroy T. Canoles, Jr.2 3
1985
1986
Directors of Federal Reserve Banks and Branches
DISTRICT
5—CONTINUED
TERM
expires
—BALTIMORE BRANCH
Appointed
by Federal Reserve
Pearl C. Brackett
Howard I. Scaggs
Charles W. Hoff, IIP
by Board of
Executive Vice President and Chief Operating Officer, Easco
Corporation, Baltimore, Maryland
President, The Covell Company, Easton, Maryland
Chairman, Tate Industries, Baltimore, Maryland
Edward H. Covell
Robert L. Tate1
Appointed
John G. Medlin
J. Donald Collier3
John A. Hardin3
Appointed
by Board of
Henry Ponder1
G. Alex Bernhardt
Wallace J. Jorgenson
DISTRICT
1985
1985
1986
1984
1985
1986
BRANCH
by Federal Reserve
Hugh M. Chapman
1984
Governors
Thomas H. Maddux
—CHARLOTTE
Dec. 31
Bank
Retired Deputy Manager, Baltimore Regional Chapter of the
American Red Cross, Baltimore, Maryland
Retired Senior Vice President, First National Bank of Maryland,
Cumberland, Maryland
Chairman of the Board, American National Building and Loan
Association, Baltimore, Maryland
President and Chief Executive Officer, Farmers and Mechanics
National Bank, Frederick, Maryland
Hugh D. Shires
Appointed
257
Bank
Chairman of the Board and Chief Executive Officer, The Citizens
and Southern National Bank of South Carolina, Columbia,
South Carolina
President, Wachovia Bank and Trust Company, N.A.,
Winston-Salem, North Carolina
President and Chief Executive Officer, First National Bank in
Orangeburg, Orangeburg, South Carolina
Chairman of the Board and President, First Federal Savings and
Loan Association, Rock Hill, South Carolina
1984
1985
1985
1986
Governors
President, Benedict College, Columbia, South Carolina
President and Director, Bernhardt Industries, Inc., Lenoir,
North Carolina
President, Jefferson-Pilot Broadcasting Co., Charlotte,
North Carolina
1984
1985
1986
6—ATLANTA
Class A
Guy W. Botts
Dan B. Andrews
Mary W. Walker3
Chairman of the Board, Barnett Banks of Florida, Inc.,
Jacksonville, Florida
President, First National Bank, Dickson, Tennessee
President, The National Bank of Walton County, Monroe, Georgia
1984
1985
1986
258
Federal Reserve Bulletin • March 1984
DISTRICT
6—CONTINUED
TERM
expires
Dec. 31
Class B
Horatio C. Thompson
President, Horatio Thompson Investments, Inc., Baton Rouge,
Louisiana
President, Florida State University, Tallahassee, Florida
President, Blach's Inc., Birmingham, Alabama
Bernard F. Sliger
Harold B. Blach, Jr.
1984
1985
1986
Class C
Jane C. Cousins
President and Chief Executive Officer, Merrill Lynch Realty/
Cousins, Miami, Florida
Chairman and Chief Executive Officer, Richway, Atlanta, Georgia
President, Rock-Tenn Company, Norcross, Georgia
John H. Weitnauer, Jr.1
Bradley Currey, Jr.2-3
—BIRMINGHAM
Appointed
1984
1985
1986
BRANCH
by Federal Reserve
William M. Schroeder
Grady Gillam
G. Mack Dove
Charles Lee Peery 3
Bank
Chairman and President, Central State Bank, Calera, Alabama
Chairman, The American National Bank, Gadsden, Alabama
President, AAA Cooper Transportation Co., Dothan, Alabama
Chairman, The First National Bank of Florence, Florence,
Alabama
1984
1985
1985
1986
Appointed by Board of Governors
Louis J. Willie
Martha A. Mclnnis 1
Samuel R. Hill, Jr.
—JACKSONVILLE
Appointed
by Federal Reserve
Lewis A. Doman
E.F. Keen, Jr.
George C. Boone, Jr.3
John D. Uible 3
Appointed
Executive Vice President, Booker T. Washington Insurance Co.,
Birmingham, Alabama
President, EnviroSouth, Inc., Montgomery, Alabama
President, University of Alabama in Birmingham, Birmingham,
Alabama
1984
1985
1986
BRANCH
Bank
President, Citizens and Peoples National Bank, Pensacola, Florida
Vice Chairman and President, Ellis Banking Corporation,
Bradenton, Florida
President and Chief Executive Officer, Security First Federal
Savings and Loan Association, Daytona Beach, Florida
Chairman and Chief Executive Officer, Florida National Banks of
Florida, Inc., Jacksonville, Florida
1984
1985
1985
1986
by Board of Governors
Jerome P. Keuper1
E. William Nash, Jr.
Jo Ann Doke Smith3
President, Florida Institute of Technology, Melbourne, Florida
President, South Central Operations, The Prudential Insurance
Company of America, Jacksonville, Florida
Co-owner, Smith Brothers, Micanopy, Florida
1984
1985
1986
Directors of Federal Reserve Banks and Branches
DISTRICT
Appointed
BRANCH
by Federal Reserve
Robert D. Rapaport3
Stephen G. Zahorian
D. S. Hudson, Jr.
1984
1984
1985
1986
by Board of Governors
Roy Vandegrift, Jr.
Sue McCourt Cobb1
President, Roy Van, Inc., Pahokee, Florida
Attorney, Greenberg, Traurig, Askew, Hoffman, Lipoff, Rosen,
and Quentel, P.A., Miami, Florida
Chief Financial Officer and Treasurer, Howard Hughes Medical
Institute, Coconut Grove, Florida
Eugene E. Cohen
—NASHVILLE
Appointed
Bank
Principal, The Rapaport Companies, Palm Beach, Florida
President, Barnett Bank of Lee County, N.A., Fort Myers, Florida
Chairman, First National Bank and Trust Company of Stuart,
Stuart, Florida
Chairman, Florida Coast Banks, Inc., Pompano Beach, Florida
Robert L. Kester 3
Appointed
Term
expires
Dec. 31
6—CONTINUED
—MIAMI
259
1984
1985
1986
BRANCH
by Federal Reserve
Michael T. Christian
Owen G. Shell, Jr.
Samuel H. Howard
Robert W. Jones 3
Bank
President and Chief Executive Officer, Commerce Union Bank of
Greene ville, Greeneville, Tennessee
President and Chief Executive Officer, First American National
Bank of Nashville, Nashville, Tennessee
Vice President and Treasurer, Hospital Corporation of America,
Nashville, Tennessee
Chairman and President, First National Bank, McMinnville,
Tennessee
1984
1985
1985
1986
Appointed by Board of Governors
C. Warren Neel 1
Condon S. Bush
Patsy R. Williams3
Dean, College of Business Administration, The University of
Tennessee, Knoxville, Tennessee
President, Bush Brothers & Company, Dandridge, Tennessee
Partner, Rhyne Lumber Company, Newport, Tennessee
—NEW ORLEANS
Appointed
Bank
Jerry W. Brents
Philip K. Livingston
Tom B. Scott, jr.
Carl E. Jones, Jr.3
Appointed
1985
1986
BRANCH
by Federal Reserve
1984
Lafayette, Louisiana
President and Chief Executive Officer, Citizens National Bank,
Hammond, Louisiana
President and Chief Executive Officer, Unifirst Federal Savings
and Loan Association, Jackson, Mississippi
Chairman, President and Chief Executive Officer, Merchants
National Bank of Mobile, Mobile, Alabama
1984
1985
1985
1986
by Board of Governors
Roosevelt Steptoe
Sharon A. Perlis1
Leslie B. Lampton
Professor of Economics, Southern University, Baton Rouge
Campus, Baton Rouge, Louisiana
Attorney, Metairie, Louisiana
President, Ergon, Inc., Jackson, Mississippi
1984
1985
1986
260
Federal Reserve Bulletin • March 1984
DISTRICT
7—CHICAGO
Term
expires
Dec. 31
Class A
Retired Chairman of the Board and Chief Executive Officer, Harris
Bankcorp, Inc.-Harris Trust and Savings Bank, Chicago, Illinois
President, First National Bank of Logansport, Logansport, Indiana
President, The Citizens National Bank of Charles City, Charles
City, Iowa
1984
1985
1986
Business Manager, Chicago Journeymen Plumbers,
Local Union 130, U.A., Chicago, Illinois
President, Tribune Company, Chicago, Illinois
President and Chief Operating Officer, United States Gypsum
Company, Chicago, Illinois
Patrick E. McNarny
Ollie Jay Tomson
1984
President, Hunt Truck Lines, Inc., Rockwell City, Iowa
Manager of Cattle Division, Garst Company, Coon Rapids, Iowa
Chairman of the Board and Chief Executive Officer, Mortgage
Guaranty Insurance Corp., Milwaukee, Wisconsin
Charles M. Bliss
1984
1985
1986
Class B
Dennis W. Hunt
Mary Garst
Leon T. Kendall
Class C
Edward F. Brabec2
Stanton R. Cook1
Robert G. Day 3
—DETROIT
Appointed
BRANCH
by Federal Reserve
Thomas R. Ricketts
Charles T. Fisher, III
Ronald D. Story 3
by Board of
Executive Vice President-Finance, K Mart Corporation, Troy,
Michigan
President and Trustee, W.K. Kellogg Foundation, Battle Creek,
Michigan
Professor, Management and Economic Consultant, School of
Economics and Management, Oakland University, Rochester,
Michigan
Russell G. Mawby 1
Karl D. Gregory
8—ST.
1984
1984
1985
1986
Governors
Robert E. Brewer
DISTRICT
Bank
Chairman of the Board and Chief Executive Officer, First
American Bank Corporation, Kalamazoo, Michigan
Chairman of the Board and President, Standard Federal Savings
and Loan Association, Troy, Michigan
Chairman of the Board and President, National Bank of Detroit,
Detroit, Michigan
President, The Ionia County National Bank of Ionia, Ionia,
Michigan
James H. Duncan
Appointed
1985
1986
1984
1985
1986
LOUIS
Class A
George M. Ryrie
Donald L. Hunt
Clarence C. Barksdale
President, First National Bank & Trust Co., Alton, Illinois
President, First National Bank of Marissa, Marissa, Illinois
Chairman of the Board and President, Centerre Bank, N.A.,
St. Louis, Missouri
1984
1985
1986
Directors of Federal Reserve Banks and Branches
DISTRICT
8—CONTINUED
261
Term
expires
Class B
Dec. 31
Jesse M. Shaver
Robert J. Sweeney 3
Consultant, Allis-Chalmers Corporation, Louisville, Kentucky
President and Chief Executive Officer, Murphy Oil Corp.,
El Dorado, Arkansas
President, Dietz Forge Company, Memphis, Tennessee
Frank A. Jones, Jr.
1984
1985
1986
Class C
W.L. Hadley Griffin1
Robert L. Virgil
Chairman of the Board, Brown Group, Inc., St. Louis, Missouri
Dean, School of Business, Washington University, St. Louis,
Missouri
President, Clothes Horse, Little Rock, Arkansas
Mary P. Holt 2
—LITTLE ROCK
Appointed
by Federal Reserve
D. Eugene Fortson
Willliam H. Kennedy, Jr.
1984
1984
1985
1986
by Board of Governors
Sheffield Nelson 1
Chairman of the Board and Chief Executive Officer, Arkla, Inc.,
Little Rock, Arkansas
Department of Communicative Disorders, University of Arkansas
at Little Rock, Little Rock, Arkansas
Group Vice President, Wood Products Group, Potlatch
Corporation, Warren, Arkansas
Shirley J.R. Pine, Ph.D.
Richard V. Warner
—LOUISVILLE
John E. Darnell, Jr.
Allan S. Hanks
Frank B. Hower, Jr.
1984
1985
1986
BRANCH
by Federal Reserve
R.I. Kerr, Jr.
Appointed
Bank
Chairman of the Board, The First National Bank of El Dorado,
El Dorado, Arkansas
Chairman of the Board and Chief Executive Officer, Savers
Federal Savings and Loan Association, Little Rock, Arkansas
Chairman and Chief Executive Officer, Worthen Bank and Trust
Company, N.A., Little Rock, Arkansas
Chairman of the Board, National Bank of Commerce of Pine Bluff,
Pine Bluff, Arkansas
Wilbur P. Gulley, Jr.
Appointed
1986
BRANCH
Gordon E. Parker
Appointed
1984
1985
Bank
Chairman of the Board, President, and Chief Executive Officer,
Great Financial Federal, Louisville, Kentucky
Chairman of the Board, The Owensboro National Bank,
Owensboro, Kentucky
President, The Anderson National Bank of Lawrenceburg,
Lawrenceburg, Kentucky
Chairman of the Board and Chief Executive Officer, Liberty
National Bank and Trust Company of Louisville, Louisville,
Kentucky
1984
1984
1985
1986
by Board of Governors
Sister Eileen M. Egan1
Henry F. Frigon
William C. Ballard, Jr.
President, Spalding University, Louisville, Kentucky
President, BATUS, Inc., Louisville, Kentucky
Executive Vice President, Finance and Administration, Humana,
Inc., Louisville, Kentucky
1984
1985
1986
262
Federal Reserve Bulletin • March 1984
DISTRICT
8—CONTINUED
—MEMPHIS
Appointed
Term
expires
BRANCH
by Federal Reserve
Edgar H. Bailey
William M. Matthews, Jr.
William H. Brandon, Jr.
Wayne W. Pyeatt
Appointed
by Board of
Bank
Chairman of the Board and Chief Executive Officer, Leader
Federal Savings and Loan Association, Memphis, Tennessee
Chairman of the Board and Chief Executive Officer, Union
Planters National Bank, Memphis, Tennessee
President, First National Bank of Phillips County, Helena,
Arkansas
President, Memphis Fire Insurance Company, Memphis,
Tennessee
1984
1984
1985
1986
Governors
G. Rives Neblett
Patricia W. Shaw1
Attorney, Neblett, Bobo, Chapman & Heaton, Shelby, Mississippi
President and Chief Executive Officer, Universal Life Insurance
Company, Memphis, Tennessee
President, Tamak Transportation Corp., West Memphis, Arkansas
1984
1985
President and Chairman of the Board, The First National Bank of
Baldwin, Baldwin, Wisconsin
President, The First National Bank in Sioux Falls, Sioux Falls,
South Dakota
1984
President, First National Bank, Milaca, Minnesota
1986
President, Mathers Land Co., Inc., Miles City, Montana
District Manager, Northwestern Bell, Bismarck, North Dakota
Chairman, Blandin Paper Company, Grand Rapids, Minnesota
Donald B. Weis
DISTRICT
Dec. 31
1984
1985
1986
Chairman of the Board and Chief Executive Officer, International
Multifoods, Minneapolis, Minnesota
Administrator, St. Mary's Hospital, Rochester, Minnesota
President, Macalester College, St. Paul, Minnesota
1984
1986
9—MINNEAPOLIS
Class A
Dale W. Fern
Curtis W. Kuehn
Burton P. Allen, Jr.3
1985
Class B
William L. Mathers
Richard L. Falconer
Harold F. Zigmund
Class C
William G. Phillips1
Sister Generose Gervais
John B. Davis, Jr.2
—HELENA
Appointed
BRANCH
by Federal Reserve
Harry W. Newlon
Seabrook Pates
Roger H. Ulrich
1985
1986
Bank
President, First National Bank, Bozeman, Montana
President and Chief Executive Officer, Midland Implement Co.,
Inc., Billings, Montana
President, The First State Bank of Malta, Malta, Montana
1984
1984
1986
Directors of Federal Reserve Banks and Branches
DISTRICT
9—CONTINUED
—HELENA
Appointed
by Board of
BRANCH—CONTINUED
TERM
expires
Dec. 31
Governors
Ernest B. Corrick1
Vice President and General Manager, Champion International
Corporation, Timberlands-Rocky Mountain Operation, Missoula,
Montana
Past President, Hinsdale Livestock Company, Glasgow, Montana
Gene J. Etchart
DISTRICT
263
10—KANSAS
1984
1985
CITY
Class A
Chairman and Chief Executive Officer, The Omaha National Bank,
Omaha, Nebraska
President, The Peoples Bank, Pratt, Kansas
Chairman, First State Bank, Pleasanton, Kansas
John D. Woods
Howard K. Loomis
Wayne D. Angell
1984
1985
1986
Class B
Duane C. Acker
Charles C. Gates
President, Kansas State University, Manhattan, Kansas
Chairman of the Board and President, Gates Corporation, Denver,
Colorado
Chairman of the Board and Chief Executive Officer, Fleming
Companies, Inc., Oklahoma City, Oklahoma
Richard D. Harrison3
1984
1985
1986
Class C
Doris M. Drury1
Irvine O. Hockaday, Jr.2-3
John F. Anderson
—DENVER
Appointed
George S. Jenks
Roger L. Reisher3
Kenneth C. Naramore
Appointed
by Board of
1
James E. Nielson
Anthony W. Williams3
Ralph F. Cox
1984
1986
1986
BRANCH
by Federal Reserve
Donald D. Hoffman
Professor of Economics and Director of Public Affairs Program,
University of Denver, Englewood, Colorado
Executive Vice President and Member of the Office of the
Chairman, Hallmark Cards, Inc., Kansas City, Missouri
President, Farmland Industries, Inc., Kansas City, Missouri
Bank
Chairman of the Board and Chief Executive Officer, Central Bank
of Denver, Denver, Colorado
Chairman and Chief Executive Officer, First New Mexico
Bankshares Corporation, Albuquerque, New Mexico
Co-Chairman, Firstbank Holding Company of Colorado,
Lake wood, Colorado
Chairman of the Board and Chief Executive Officer, Stockmen's
Bank & Trust Company, Gillette, Wyoming
1984
1985
1986
1986
Governors
President and Chief Executive Officer, JN, Inc., Cody, Wyoming
President, Williams, Turner and Holmes, P.C., Grand Junction,
Colorado
Executive Vice President, Atlantic Richfield Company, Denver,
Colorado
1984
1985
1986
264
Federal Reserve Bulletin • March 1984
DISTRICT
10—CONTINUED
—OKLAHOMA
Appointed
TERM
expires
CITY BRANCH
by Federal Reserve
Marcus R. Tower
William H. Crawford
Appointed
by Board of
President and Trustee, Samuel Robert Noble Foundation, Inc.,
Ardmore, Oklahoma
Oklahoma City, Oklahoma
Patience Latting1-3
Appointed
by Federal Reserve
Charles H. Thorne3
William W. Cook, Jr.
by Board of
Robert G. Lueder1
Kenneth Morrison3
DISTRICT
1984
1984
1985
1984
1985
BRANCH
Donald J. Murphy
Appointed
31
Governors
John Snodgrass 3
—OMAHA
'
Bank
Vice Chairman of the Board and Chairman of the Credit Policy
Committee, Bank of Oklahoma, N.A., Tulsa, Oklahoma
President and Chief Executive Officer, Continental Federal Savings
& Loan Association, Oklahoma City, Oklahoma
President and Chief Executive Officer, First National Bank and
Trust Company, Frederick, Oklahoma
William O. Alexander
DEC
Bank
Director, United States National Bank of Omaha, Omaha,
Nebraska
Chairman and Chief Executive Officer, First Federal Savings and
Loan Association of Lincoln, Lincoln, Nebraska
President, Beatrice National Bank and Trust Company, Beatrice,
Nebraska
1984
1985
1985
Governors
Chairman, Lueder Construction Company, Omaha, Nebraska
President, Morrison-Quirk Grain Corp., Hastings, Nebraska
1984
1985
Chairman of the Board and Chief Executive Officer, Texas
American Bancshares Inc., Ft. Worth, Texas
President and Chief Executive Officer, First National Bank in
Valley Mills, Valley Mills, Texas
Chairman of the Board and President, The First National Bank of
Bellville, Bellville, Texas
1984
Associate Dean, College of Agricultural Sciences, Texas Tech
University, Lubbock, Texas
President, Lomas & Nettleton Financial Corporation, Dallas,
Texas
Associate Dean, Hankamer School of Business, Baylor University,
Waco, Texas
1984
11—DALLAS
Class A
Lewis H. Bond
John P. Gilliam
Miles D. Wilson
1985
1986
Class B
J. Wayland Bennett
Robert Ted Enloe, III
Kent Gilbreath
1985
1986
Directors of Federal Reserve Banks and Branches
DISTRICT
11—CONTINUED
Term
expires
Class C
Dec
Robert D. Rogers1
John V. James2
Vacancy
—EL PASO
Appointed
President, Texas Industries, Inc., Dallas, Texas
Retired Chairman, Dresser Industries, Inc., Dallas, Texas
David L. Stone
1984
1984
1985
1986
by Board of Governors
Mary Carmen Saucedo 1
Associate Superintendent, Central Area, El Paso Independent
School District, El Paso, Texas
President, Delaware Mountain Enterprises, Carlsbad, New Mexico
President, Yates Drilling Company, Artesia, New Mexico
John Sibley 3
Peyton Yates 3
—HOUSTON
1984
1986
1985
BRANCH
by Federal Reserve
Ralph E. David
Thomas B. McDade
Will E. Wilson
Marcella D. Perry3
Appointed
1985
1986
Bank
Chairman of the Executive Committee, InterFirst Bank Odessa,
Odessa, Texas
President, New Mexico State University, Las Cruces, New Mexico
Chairman of the Board and Chief Executive Officer, InterFirst
Bank El Paso, N.A., El Paso, Texas
President, The Portales National Bank, Portales, New Mexico
Gerald W. Thomas
Stanley J. Jarmiolowski
Appointed
31
BRANCH
by Federal Reserve
Ernest M. Schur
Appointed
265
Bank
Chairman of the Board and Chief Executive Officer, First Freeport
National Bank, Freeport, Texas
Vice Chairman, Texas Commerce Bancshares, Inc., Houston,
Texas
Chairman of the Board and Chief Executive Officer, First Security
Bank of Beaumont, N.A., Beaumont, Texas
President and Chief Executive Officer, Heights Savings
Association, Houston, Texas
1984
1984
1985
1986
by Board of Governors
George V. Smith, Sr.
Robert T. Sakowitz
Paul N. Howell 1
—SAN ANTONIO
Appointed by Federal Reserve
Charles E. Cheever, Jr.
Joe D. Barbee
George Brannies
C. Ivan Wilson 3
President, Smith Pipe & Supply, Inc., Houston, Texas
Chairman of the Board and President, Sakowitz Inc., Houston,
Texas
Chairman of the Board, Howell Corporation, Houston, Texas
1984
1985
1986
BRANCH
Bank
Chairman of the Board, Broadway National Bank, San Antonio,
Texas
President and Chief Executive Officer, Barbee-Neuhaus Implement
Company, Weslaco, Texas
Chairman of the Board and President, The Mason National Bank,
Mason, Texas
Chairman and Chief Executive Officer, First City Bank of Corpus
Christi, Corpus Christi, Texas
1984
1984
1985
1986
266
Federal Reserve Bulletin • March 1984
DISTRICT
11—CONTINUED
—SAN
Appointed
ANTONIO
by Board of
Governors
Carlos A. Zuniga
Robert F. McDermott
Partner, Zuniga Freight Services, Inc., Laredo, Texas
Chairman of the Board and President, United Services Automobile
Association, San Antonio, Texas
Professor of Banking and Finance, University of Texas at Austin,
Austin, Texas
Lawrence L. Crum1
DISTRICT
12—SAN
BRANCH—CONTINUED
Term
expires
Dec. 31
1984
1985
1986
FRANCISCO
Class A
Robert A. Young
Chairman of the Board and President, Northwest National Bank,
Vancouver, Washington
Chairman, President, and Chief Executive Officer, First Security
Corporation, Salt Lake City, Utah
Chairman, Central Pacific Corporation, Bakersfield, California
Spencer F. Eccles
Rayburn S. Dezember 3
1984
1985
1986
Class B
George H. Weyerhauser
President and Chief Executive Officer, Weyerhauser Company,
Tacoma, Washington
Chairman, Gramercy Enterprises, Inc., Los Angeles, California
President, Willamina Lumber Company, Portland, Oregon
President, Southern Pacific Company, San Francisco, California
Chairman of the Board, Caroline Leonetti, Ltd., Hollywood,
California
Chairman of the Board, President, and Chief Executive Officer,
Superior Farming Company, Bakersfield, California
Togo W. Tanaka
John C. Hampton
1984
1984
1985
1985
1986
Class C
Alan C. Furth2
Caroline Leonetti
Ahmanson 1
Fred W. Andrew
—Los
Appointed
ANGELES
by Federal Reserve
Robert R. Dockson
Bram Goldsmith
William L. Tooley
Harvey J. Mitchell3
Appointed
by Board of
Bruce M. Schwaegler 1
Thomas R. Brown, Jr.
Lola M. McAlpin-Grant
1986
BRANCH
Bank
Chairman and Chief Executive Officer, California Federal Savings,
Los Angeles, California
Chairman of the Board, City National Bank, Beverly Hills,
California
Managing Partner, Tooley and Company, Los Angeles, California
President and Chief Executive Officer, Escondido National Bank,
Escondido, California
1984
1985
1985
1986
Governors
President, Bullock's-Bullock's Wilshire, Los Angeles, California
Chairman and Chief Executive Officer, Burr-Brown Research
Corporation, Tucson, Arizona
Attorney, Los Angeles, California
1984
1985
1986
Directors of Federal Reserve Banks and Branches
DISTRICT
12—CONTINUED
—PORTLAND
Appointed
Term
expires
BRANCH
by Federal Reserve
Jack W. Gustavel
Herman C. Bradley, Jr.
William S. Naito
Dec. 31
Bank
President and Chief Executive Officer, The First National Bank of
North Idaho, Coeur d'Alene, Idaho
Chairman and Chief Executive Officer, United States National
Bank of Oregon, Portland, Oregon
President and Chief Executive Officer, Tri-County Banking
Company, Junction City, Oregon
Vice President, Norcrest China Company, Portland, Oregon
John A. Elorriaga
Appointed
267
1984
1984
1985
1986
by Board of Governors
Carolyn S. Chambers
Executive Vice President and Treasurer, Liberty Communications,
Inc., Eugene, Oregon
Northwest Regional Director, International Longshoremen's &
Warehousemen's Union, Portland, Oregon
President, Reed College, Portland, Oregon
G. Johnny Parks
Paul E. Bragdon1-3
1984
1985
1986
—SALT LAKE CITY BRANCH
Appointed
by Federal Reserve
Executive Director, University of Utah Alumni Association,
Salt Lake City, Utah
President and Chief Executive Officer, The Idaho First National
Bank, Boise, Idaho
Chairman of the Board, Tracy-Collins Bank and Trust Company,
Salt Lake City, Utah
President and Chairman of the Board, First National Bank of Ely,
Ely, Nevada
Lela M. Ence
Fred C. Humphreys
John A. Dahlstrom
Albert C. Gianoli
Appointed
1984
1985
1985
1986
by Board of Governors
Wendell J. Ashton 1
David A. Nimkin
Publisher, Deseret News, Salt Lake City, Utah
Executive Director, Salt Lake Neighborhood Housing Services,
Inc., Salt Lake City, Utah
President, White River Shale Oil Corp., Salt Lake City, Utah
Robert N. Pratt3
—SEATTLE
Appointed
Bank
William W. Philip
Lonnie G. Bailey
1986
BRANCH
by Federal Reserve
John N. Nordstrom
G. Robert Truex, Jr.
1984
1985
Bank
Co-Chairman of the Board, Nordstrom, Inc., Seattle, Washington
Chairman, Rainier Bancorporation and Rainier National Bank,
Seattle, Washington
Chairman, President and Chief Executive Officer, Puget Sound
Bancorp, Tacoma, Washington
Executive Vice President and Chief Operating Officer, Farmers &
Merchants Bank of Rockford, Spokane, Washington
1984
1984
1985
1986
268
F e d e r a l R e s e r v e Bulletin • M a r c h 1984
DISTRICT
12—CONTINUED
—SEATTLE
Appointed
by Board
John W. Ellis1
Byron I. Mallot
Carol A. Birkholz3
of
TERM
expires
BRANCH—CONTINUED
Dec.3i
Governors
President and Chief Executive Officer, Puget Sound Power & Light
Company, Bellevue, Washington
Chairman and Chief Executive Officer, Sealaska Corporation,
Juneau, Alaska
Managing Partner, Laventhol and Horwath, Seattle, Washington
1984
1985
1986
1
Financial and Business Statistics
CONTENTS
WEEKLY REPORTING COMMERCIAL
Domestic Financial
A3
A4
A5
A5
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
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 Gross demand deposits of individuals,
partnerships, and corporations
FINANCIAL
POLICY
A6
A7
A8
A9
INSTRUMENTS
Federal Reserve Bank interest rates
Reserve requirements of depository institutions
Maximum interest rates payable on time and
savings deposits at federally insured institutions
Federal Reserve open market transactions
FEDERAL RESERVE
MARKETS
A24 Commercial paper and bankers dollar
acceptances outstanding
A24 Prime rate charged by banks on short-term
business loans
A25 Terms of lending at commercial banks
A26 Interest rates in money and capital markets
A27 Stock market—Selected statistics
A28 Selected financial institutions—Selected assets
and liabilities
BANKS
A10 Condition and Federal Reserve note statements
A l l Maturity distribution of loan and security
holdings
MONETAR Y AND CREDIT
AGGREGATES
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock measures and components
A14 Bank debits and deposit turnover
A15 Loans and securities of all commercial banks
COMMERCIAL BANKING
INSTITUTIONS
A16 Major nondeposit funds
A17 Assets and liabilities, last-Wednesday-of-month
series
BANKS
FEDERAL
A29
A30
A31
A31
FINANCE
Federal fiscal and financing operations
U.S. Budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types and
ownership
A32 U.S. government securities dealers—
Transactions, positions, and financing
A33 Federal and federally sponsored credit
agencies—Debt outstanding
2
Federal Reserve Bulletin • March 1984
SECURITIES MARKETS AND
CORPORATE FINANCE
A34 N e w security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales and
asset position
A35 Corporate profits and their distribution
A36 Nonfinancial corporations—Assets and
liabilities
A36 Total nonfarm business expenditures on new
plant and equipment
A37 Domestic finance companies—Assets and
liabilities and business credit
REAL
A54 Foreign branches of U.S. banks—Balance sheet
data
A56 Selected U.S. liabilities to foreign official
institutions
REPORTED BY BANKS IN THE UNITED
STATES
A56
A57
A59
A60
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A60 Banks' own claims on unaffiliated foreigners
A61 Claims on foreign countries—Combined
domestic offices and foreign branches
ESTATE
A38 Mortgage markets
A39 Mortgage debt outstanding
REPORTED BY NONBANKING
BUSINESS
ENTERPRISES IN THE UNITED STATES
CONSUMER INSTALLMENT
A62 Liabilities to unaffiliated foreigners
A63 Claims on unaffiliated foreigners
CREDIT
A40 Total outstanding and net change
A41 Terms
A42 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets
Statistics
A44 Nonfinancial business activity—Selected
measures
A44 Output, capacity, and capacity utilization
A45 Labor force, employment, and unemployment
A46 Industrial production—Indexes and gross value
A48 Housing and construction
A49 Consumer and producer prices
A50 Gross national product and income
A51 Personal income and saving
International
A52
A53
A53
A53
Statistics
U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
TRANSACTIONS
A64 Foreign transactions in securities
A65 Marketable U.S. Treasury bonds and notes—
Foreign holdings and transactions
FLOW OF FUNDS
Domestic Nonfinancial
SECURITIES HOLDINGS AND
INTEREST AND EXCHANGE
RATES
A65 Discount rates of foreign central banks
A66 Foreign short-term interest rates
A66 Foreign exchange rates
A67 Guide to Tabular Presentation,
Statistical Releases, and
Special Tables
SPECIAL
TABLES
A68 Commercial bank assets and liabilities,
September 30, 1983
A74 Assets and liabilities of U . S . branches and
agencies of foreign banks, September 30, 1983
Domestic Financial Statistics
1.10
A3
MONETARY AGGREGATES A N D INTEREST RATES A
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent)1
Item
1983
Q1
1
2
3
4
Reserves of depository institutions
Total
Required
Nonborrowed 2
Monetary base
5
6
7
8
Concepts of money and liquid assets3
Ml
M2
M3
L
Time and savings deposits
Commercial banks
9 Total 4
10 Savings
11 Small-denomination time5
12 Large-denomination time6
13 Thrift institutions7
14 Total loans and securities at commercial banks8
Q2
1983
Q3
Q4
Aug.
Sept.
Oct.
Nov.
Dec.
4.1
3.8
3.5
9.5
12.4
12.6
6.2
11.1
4.7
4.6
1.8
7.6
-2.1
-2.6
4.9
7.4
-3.4
-1.5
-6.6
6.4
.7
-1.5
4.2
9.1
-3.0
-3.2
16.7
7.6
-6.9
-7.8
-9.1
6.1
5.8
4.9
10.3
6.4
14.1
20.3
10.2
10.8
12.2
10.1
8.1
9.8
8.9
7.8
8.4
10.8
2.1
7.0
9.0
n.a.
2.8
6.0
8.6
11.0
.9
4.8
7.6
8.4
1.9
9.1
8.6
6.6
.9
7.2
11.9
n.a.
6.5
5.5
6.6
n.a.
14.2
-43.4
-48.5
-53.9
12.1
3.0
-14.8
24.1
-24.8
16.0
6.1
-6.8
14.9
-8.5
13.7
7.2
-9.5
20.1
-4.2
11.5
5.7
-11.2
22.4
-2.9
13.5
6.0
-8.7
17.3
-3.8
12.5
3.1
-10.5
23.1
-21.6
13.0
13.8
-7.9
21.7
11.2
9.7
9.7
-11.5
9.3
14.5
5.9
10.9
9.9
8.6
12.5
11.2
4.9
9.9
13.7
12.9
Interest rates (levels, percent per annum)
1983
Q1
15
16
17
18
Short-term rates
Federal funds9
Discount window borrowing10
Treasury bills (3-month, secondary market)11
Commercial paper (3-month)11'12
Long-term rates
Bonds
19 U.S. government13
20 State and local government1
21 A-rated utility (recently-offered)
22 Conventional mortgages
Q3
Q4
Oct.
Nov.
Dec.
Jan.
Feb.
8.65
8.50
8.11
8.34
8.80
8.50
8.40
8.62
9.46
8.50
9.14
9.34
9.43
8.50
8.80
9.21
9.48
8.50
8.64
8.99
9.34
8.50
8.76
9.10
9.47
8.50
9.00
9.53
9.56
8.50
8.90
9.20
9.59
8.50
9.09
9.32
10.87
9.43
12.70
13.26
10.81
9.23
12.12
13.16
11.79
9.61
12.96
13.83
11.90
9.77
13.14
13.47
11.77
9.66
12.43
13.52
11.92
9.75
12.64
13.48
12.02
9.89
12.62
13.41
11.82
9.63
12.99
13.28
12.00
9.64
13.05
13.31
A Data appearing in this issue of the BULLETIN are reprinted because
historical data on the money stock and reserves were not available at the time of
publication.
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) travelers checks of
nonbank issuers; (3) demand deposits at all commercial banks other than those
due to domestic banks, the U.S. government, and foreign banks and official
institutions less cash items in the process of collection and Federal Reserve float;
and (4) 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 money market deposit accounts (MMDAs), savings and smalldenomination 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.
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.
Q2
1984
1983
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. Beginning December
1981, growth 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. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. This table previously showed the rate on newly-issued Aaa utility
bonds, but this series was discontinued in January 1984 owing to the lack of Aaa
issues.
16. Average rates on new commitments for conventional first mortgages on
new homes in primary markets; from Department of Housing and Urban
Development.
NOTE. Revisions in reserves of depository institutions reflect the transitional
phase-in of reserve requirements as specified in the Monetary Control Act of
1980.
A4
1.11
DomesticNonfinancialStatistics • March 1983
RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT A
Millions of dollars
Monthly averages of
daily figures
Factors
Weekly averages of daily figures for week ending
1984
1983
1983
1984
Nov.
Dec.
Jan.?
167,773
171,695
173,591
169,687
173,426
172,966
174,845
173,499
171,238
170,769
148,005
147,775
230
8,762
8,714
48
54
912
1,592
8,448
11,123
4,618
13,786
151,679
151,517
162
8,673
8,646
27
34
745
2,294
8,270
11,123
4,618
13,786
152.481
151.482
999
8,709
8,630
79
76
726
2,843
8,756
11,120
4,618
13,786
150,671
150,671
0
8,646
8,646
0
0
629
1,583
8,159
11,123
4,618
13,786
153,770
153,770
0
8,645
8,645
0
0
1,054
1,655
8,301
11,123
4,618
13,786
151,498
151,498
0
8,645
8,645
0
0
753
3,592
8,479
11,123
4,618
13,786
153,555
151,120
2.435
8,920
8,645
275
413
1,291
2,119
8,547
11,121
4,618
12,786
153,696
153,162
534
8,662
8,642
20
7
563
1,946
8,624
11,121
4,618
13,786
151,822
151,822
0
8,635
8,635
0
0
781
1,298
8,703
11,121
4,618
13,786
151,266
150,586
680
8,691
8,626
65
10
505
1,439
8,859
11,120
4,618
13,786
165,317
481
168,284
471
167,006
477
167,713
473
168,295
473
169,685
471
170,156
462
168,979
467
167,168
478
165,418
481
2,905
238
596
3,591
220
594
4,479
216
489
3,266
197
581
4,108
237
620
3,729
224
528
3.436
210
755
3,458
216
471
3,118
225
465
5,252
216
427
Dec. 14
Dec. 21
Dec. 28
Jan. 4
Jan. 11
Jan. 18
Jan. 25P
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
2
3
4
5
6
7
8
9
10
11
12
13
14
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
Gold stock
Special drawing rights certificate account....
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 Service-related balances and adjustment...
21 Other Federal Reserve liabilities and
capital
22 Reserve accounts2
1,237
1,477
1,941
1,484
1,501
1,348
1,531
2,422
2,105
1,973
5,584
20,943
5,598
20,986
5,617
22,889
5,617
19,883
5,682
22,036
5,654
20,854
5,514
22,305
5,566
21,443
5,735
21,467
5,573
20,951
End-of-month figures
1983
Wednesday figures
1984
1983
1984
Nov.
Dec.
Jan.''
168,481
172,460
169,225
171,971
174,928
174,318
179,211
178,565
176,275
174,267
149,439
149,439
0
8,647
8,647
0
0
1,057
898
8,438
151,942
150,558
1,384
8,853
8,645
208
418
918
1,563
8,766
150,254
150,254
0
8,605
8,605
0
0
418
846
9,102
150,055
150,055
0
8,645
8,645
0
0
2.431
2,522
8,318
152,379
152,379
0
8,645
8,645
0
0
1,132
4,232
8,540
152,570
152,570
0
8,645
8,645
0
0
1,311
3,055
8,737
157,519
153,147
4,372
8,974
8,645
329
436
1,217
2,296
8,769
153,740
153,740
0
8,635
8,635
0
0
2,215
5,252
8,723
153,538
153,538
0
8,635
8,635
0
0
3,362
1,880
8,860
151,914
149,699
2,215
8,825
8,605
220
35
646
3,795
9,052
11,123
4,618
13,786
11,121
4,618
13,786
11,120
4,618
13,786
11,123
4,618
13,786
11,123
4,618
13,786
11,123
4,618
13,786
11,121
4,618
13,786
11,121
4,618
13.786
11,120
4,618
13,786
11,120
4,618
13,786
166,682
475
170,005
463
164,514
484
168,146
473
169,033
472
170,616
462
170,229
462
168,291
468
166,619
480
164,786
484
2,896
360
610
983
3,661
191
845
1,013
7,153
252
410
1,047
2,839
232
540
1,018
4,621
287
531
1,023
3,636
263
597
1,018
3,104
198
474
1,014
3,258
226
485
1,020
3,921
171
431
1,034
7,331
198
435
1,049
5,432
20,569
5,394
20,413
5,625
19,263
5.432
22,817
5,499
22,989
5,496
21,756
5,552
27,702
5,554
28.787
5,446
27,696
5,445
24,062
Dec. 14
Dec. 21
Dec. 28
Jan. 4
Jan. 11
Jan. 18
Jan. 25P
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
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 Service-related balances and adjustment...
43 Other Federal Reserve liabilities and
capital
44 Reserve accounts2
• Data appearing in this issue of the BULLETIN are reprinted because historical
data on the money stock and reserves were not available at the time of
publication.
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
1981
1982
Dec.
1983
Dec.
June
July
Sept.
Aug.
1984
Oct.
Nov.
Dec.
Jan.?
26,163
19,538
24,804
20,392
21,808
20,098
22,139
20,413
21,965
20,035
20,585
20,798
21,059
20,471
20,943
20,558
20,986
20,755
22,889
22,548
13,577
14,292
13,593
13,647
13,656
13,927
13,866
14,014
14,597
14,784
2,178
3,783
45,701
2,757
3,343
45,196
3,014
3,491
41,906
3,161
3,605
42,552
3,039
3,340
42,000
3,404
3,467
41,383
3,212
3,393
41,530
3,187
3,357
41,501
3,311
2,847
41,741
4,002
3,762
45,437
41,918
41,606
312
642
53
149
1 Reserve balances with Reserve Banks'
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 cash 5
used
to satisfy reserve requirements4
8 Required reserves (estimated)
9 Excess reserve balances at Reserve Banks4 6
10 Total borrowings at Reserve Banks
11
Seasonal borrowings at Reserve Banks
12
Extended credit at Reserve Banks
41,853
41,353
500
697
33
187
38,415
37,935
480
1,714
121
964
38,947
38,440
507
1,382
172
572
38,660
38,214
446
1,573
198
490
37,916
37,418
498
1,441
191
515
38,137
37,632
505
837
142
255
38,144
37,615
529
912
119
6
38,894
38,333
561
745
96
2
41,675
39,508
2,167
726
86
4
Weekly averages of daily figures for week ending
1983
Nov. 23
13 Reserve balances with Reserve Banks'
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 5
used
to satisfy reserve requirements4'
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 Banks
Nov. 30
Dec. 7
Dec. 14
Dec. 21
Dec. 28
Jan. 4
Jan. 11
Jan. 18
Jan. 25p
21,935
19,190
21,127
21,036
20,605
20,929
19,883
20,348
22,036
20,383
20,854
21,292
22,305
20,912
21,443
21,508
21,467
24,027
20,951
23,137
13,650
14,409
14,355
14,715
14,422
14,879
14,637
14,841
15,253
15,637
2,672
2,868
41,125
3,298
3,329
42,163
3,216
3,358
41,534
3,843
1,790
40,231
2,963
2,998
42,419
3,270
3,143
42,146
3,198
3,077
43,217
3,378
3,289
42,951
4,364
4,410
45,494
3,664
3,836
44,088
38,257
37,958
299
813
123
4
38,834
38,198
636
877
123
13
38,176
37,671
505
438
89
2
38,441
37,954
487
629
89
1
39,421
38,776
645
1,054
100
1
39,003
38,567
436
753
115
3
40,140
39,182
958
1,291
73
5
39,662
38,980
682
563
69
2
41,084
40,609
475
781
79
4
40,252
39,672
580
505
96
6
• Data appearing in this issue of the BULLETIN are reprinted because historical
data on the money stock and reserves were not available at the time of
publication.
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
1.13
1984
a graduated basis over a 24-month period when a nonmember bank merged into an
existing member bank, or when a nonmember bank joins the Federal Reserve
System. For weeks for which figures are preliminary, figures by class of bank do
not add to total because adjusted data by class are not available.
5. Reserve balances with Federal Reserve Banks, 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.)
FEDERAL F U N D S A N D REPURCHASE AGREEMENTS
Large Member Banks'
Averages of daily figures, in millions of dollars
1984 week ending Wednesday
By maturity and source
Jan. 4
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
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.
Jan. 11
Jan. 18
Jan. 25
Feb. 1
Feb. 6
Feb. 13
Feb. 20
Feb. 27
56,748'
60,936'
57,939'
52,795'
53,310
57,860
59,206
58,037
53,884
19,684'
5,720
25,886'
21,380'
5,421
27,179
22,974
5,866
26,483
24,970
4,790
28,271'
23,324
5,231
27,630
23,998
5,228
26,411
26,065
5,318
26,569
25,325
6,278
28,316
24,740
5,784
27,133
6,458'
5,933'
6,560'
6,240'
6,522
6,163
6,821
6,273
6,862
9,737
6,400
9,756
8,927
6,190
8,316
9,026
6,756
9,786
8,759
7,402'
9,666
9,303
7,603
9,830
9,097
7,463
9,811
9,614
8,058
10,314
9,065
7,114
9,182
9,298
7,636
9,599
22,904'
4,367
24,576'
4,862
24,528
4,291
23,568'
4,068
23,819
4,784
25,799
5,057
26,397
5,254
27,598
6,798
23,610
5,879
A6
1.14
DomesticNonfinancialStatistics • March 1983
FEDERAL RESERVE BANK INTEREST RATES
Percent per annum
Current and previous levels
Extended credit1
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
2/29/84
Effective
date
Previous
rate
Rate on
2/29/84
Previous
rate
Rate on
2/29/84
Previous
rate
Rate on
2/29/84
Previous
rate
8Vi
12/14/82
12/15/82
12/17/82
12/15/82
12/15/82
12/14/82
9
8Vi
9
9Vi
10
lO'/i
11
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco...
81/2
12/14/82
12/14/82
12/14/82
12/15/82
12/14/82
12/14/82
9
8Vi
9
9 Vi
10
lOVi
12/14/82
12/15/82
12/17/82
12/15/82
12/15/82
12/14/82
12/14/82
12/14/82
12/14/82
12/15/82
12/14/82
12/14/82
11
2
Range of rates in recent years
Effective date
In effect Dec . 31, 1973
1974— Apr. 25
30
Dec. 9
16
1975— Jan.
6
10
24
Feb. 5
7
Mar. 10
14
May 16
23
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
m
m
7!/4-73/4
7'/4-73/4
71/4
63/4-7 «/4
63/4
6'/t-63/4
6'/4
6-6>/4
6
73/4
71/4
51/2-6
7Vi-8
8
73/4-8
73/4
8
8
73/4
73/4
63/4
63/4
6'/4
6V4
6
6
51/4-5 Vi
51/4
516
5Vi
51/4
51/4
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.
9
20
May 11
12
6-6'A
6V6
6>/!-7
7
6V4
6!h
1
1
7-7 V*
7'/4
73/4
8
8-8 Vi
8Vi
8Vi-9Vi
1979—July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
10
10-10'/2
10'/2
101/2-11
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
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, 1980,
1981, and 1982.
Range (or
level)—
All F.R.
Banks
3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
1978— July
71/4
1976— Jan. 19
23
Nov. 22
26
51h
Effective
91/2
F.R.
Bank
of
N.Y.
71/4
71/4
73/4
8
8'/i
8 Vi
9'/2
91/2
10
10'/2
10'/2
11
11
12
12
13
13
13
12
11
11
10
10
11
12
13
13
Effective date
1981— May
5
8
Nov. 2
6
Dec. 4
1982— July 20
23
Aug. 2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
In effect Feb. 29, 1984
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
13-14
14
13-14
13
12
14
14
13
13
12
llVi-12
11 Vi
11-111/6
11
lOVi
10-10'zi
10
9Vi-10
9Vi
9-91/2
9
8Vi-9
8'/i-9
11'/!
llVi
11
11
lOVi
10
10
91/2
9Vi
9
9
9
81/2
8Vi
81/2
8'/2
8V2
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.
Policy Instruments
1.15
A7
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 1
Percent of deposits
Type of deposit, and
deposit interval
Member bank requirements
before implementation of the
Monetary Control Act
Percent
Net demand2
$10 million-$100 million
$100 million-$400 million
Over $400 million
Time and savings2>3
Savings
Time4
$0 million-$5 million, by maturity
30-179 days
180 days to 4 years
4 years or more
Over $5 million, by maturity
30-179 days
180 days to 4 years
4 years or more
Effective date
7
9Vi
11V4
123/4
16'/4
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
3
3/16/67
3
2V2
1
6l
2 /i
1
Depository institution requirements
after implementation of the
Monetary Control Act6
Percent
Effective date
Net transaction accounts7 8
$0-$28.9 million
Over $28.9 million
3
12
12/29/83
12/29/83
Nonpersonal time deposits9
By original maturity
Less than 1 Vi years
1 Vi years or more
3
0
10/6/83
10/6/83
Eurocurrency liabilities
All types
3
11/13/80
3/16/67
1/8/76
10/30/75
12/12/74
1/8/76
10/30/75
1. For changes in reserve requirements beginning 1963, see Board's Annual
Statistical Digest, 1971-1975, and for prior changes, see Board's 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 offoreign banks, and Edge Act
corporations.
2. Requirement schedules are graduated, and each deposit interval applies to
that part of the deposits of each bank. Demand deposits subject to reserve
requirements were gross demand deposits minus cash items in process of
collection and demand balances due from domestic banks.
The Federal Reserve Act as amended through 1978 specified different ranges of
requirements for reserve city banks and for other banks. Reserve cities were
designated under a criterion adopted effective Nov. 9, 1972, by which a bank
having net demand deposits of more than $400 million was considered to have the
character of business of a reserve city bank. The presence of the head office of
such a bank constituted designation of that place as a reserve city. Cities in which
there were Federal Reserve Banks or branches were also reserve cities. Any
banks having net demand deposits of $400 million or less were considered to have
the character of business of banks outside of reserve cities and were permitted to
maintain reserves at ratios set for banks not in reserve cities.
Effective Aug. 24, 1978, the Regulation M reserve requirements on net balances
due from domestic banks to their foreign branches and on deposits that foreign
branches lend to U.S. residents were reduced to zero from 4 percent and 1 percent
respectively. The Regulation D reserve requirement of borrowings from unrelated
banks abroad was also reduced to zero from 4 percent.
Effective with the reserve computation period beginning Nov. 16, 1978,
domestic deposits of Edge corporations were subject to the same reserve
requirements as deposits of member banks.
3. Negotiable order of withdrawal (NOW) accounts and time deposits such as
Christmas and vacation club accounts were subject to the same requirements as
savings deposits.
The average reserve requirement on savings and other time deposits before
implementation of the Monetary Control Act had to be at least 3 percent, the
minimum specified by law.
4. Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent
was imposed on large time deposits of $100,000 or more, obligations of affiliates,
and ineligible acceptances. This supplementary requirement was eliminated with
the maintenance period beginning July 24, 1980.
Effective with the reserve maintenance period beginning Oct. 25, 1979, a
marginal reserve requirement of 8 percent was added to managed liabilities in
excess of a base amount. This marginal requirement was increased to 10 percent
beginning Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and
was eliminated beginning July 24, 1980. Managed liabilities are defined as large
time deposits, Eurodollar borrowings, repurchase agreements against U.S.
government and federal agency securities, federal funds borrowings from nonmember institutions, and certain other obligations. In general, the base for the
marginal reserve requirement was originally the greater of (a) $100 million or (b)
the average amount of the managed liabilities held by a member bank, Edge
corporation, or family of U.S. branches and agencies of a foreign bank for the two
reserve computation periods ending Sept. 26, 1979. For the computation period
beginning Mar. 20, 1980, the base was lowered by (a) 7 percent or (b) the decrease
in an institution's U.S. office gross loans to foreigners and gross balances due
from foreign offices of other institutions between the base period (Sept. 13-26,
1979) and the week ending Mar. 12, 1980, whichever was greater. For the
computation period beginning May 29, 1980, the base was increased by 7Vi
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.
Type of deposit, and
deposit interval5
5. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 97320) provides that $2 million of reservable liabilities (transaction accounts,
nonpersonal time deposits, and Eurocurrency liabilities) of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the next succeeding calendar year by 80 percent of the
percentage increase in the total reservable liabilities of all depository institutions,
measured on an annual basis as of June 30. No corresponding adjustment is to be
made in the event of a decrease. Effective Dec. 9, 1982, the amount of the
exemption was established at $2.1 million. Effective with the reserve maintenance
period beginning Jan. 12, 1984, the amount of the exemption is $2.2 million. In
determining the reserve requirements of a depository institution, the exemption
shall apply in the following order: (1) nonpersonal money market deposit accounts
(MMDAs) authorized under 12 CFR section 1204.122; (2) net NOW accounts
(NOW accounts less allowable deductions); (3) net other transaction accounts;
and (4) nonpersonal time deposits or Eurocurrency liabilities starting with those
with the highest reserve ratio. With respect to NOW accounts and other
transaction accounts, the exemption applies only to such accounts that would be
subject to a 3 percent reserve requirement.
6. For nonmember banks and thrift institutions that were not members of the
Federal Reserve System on or after July 1, 1979, a phase-in period ends Sept. 3,
1987. For banks that were members on or after July 1, 1979, but withdrew on or
before Mar. 31, 1980, the phase-in period established by Public Law 97-320 ends
on Oct. 24, 1985. For existing member banks the phase-in period is about three
years, depending on whether their new reserve requirements are greater or less
than the old requirements. All new institutions will have a two-year phase-in
beginning with the date that they open for business, except for those institutions
that have total reservable liabilities of $50 million or more.
7. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers (in excess
of three per month) for the purpose of making payments to third persons or others.
However, MMDAs and similar accounts offered by institutions not subject to the
rules of the Depository Institutions Deregulation Committee (DIDC) that permit
no more than six preauthorized, automatic, or other transfers per month of which
no more than three can be checks—are not transaction accounts (such accounts
are savings deposits subject to time deposit reserve requirements.)
8. The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage increase in transaction accounts held by
all depository institutions determined as of June 30 each year. Effective Dec. 31,
1981, the amount was increased accordingly from $25 million to $26 million; and
effective Dec. 30, 1982, to $26.3 million; and effective Dec. 29, 1983, to $28.9
million.
9. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which a beneficial interest is
held by a depositor that is not a natural person. Also included are certain
transferable time deposits held by natural persons, and certain obligations issued
to depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.
NOTE. Required reserves must be held in the form of deposits with Federal
Reserve Banks or vault cash. Nonmembers may maintain reserve balances with a
Federal Reserve Bank indirectly on a pass-through basis with certain approved
institutions.
A8
DomesticNonfinancialStatistics • March 1983
1.16
MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions 1
Percent per annum
Commercial banks
In effect Feb. 29, 1984
Type of deposit
Savings and loan associations and
mutual savings banks (thrift institutions)1
In effect Feb. 29, 1984
Percent
1
2
3
4
Savings
Negotiable order of withdrawal accounts
Negotiable order of withdrawal2 accounts of $2,500 or more2
Money market deposit account
Time accounts by maturity
5 7-31 days of less than $2,5004
6 7-31 days of $2,500 or more2
7 More than 31 days
1. Effective Oct. 1, 1983, restrictions on the maximum rates of interest payable
by commercial banks and thrift institutions on various categories of deposits were
removed. For information regarding previous interest rate ceilings on all categories of accounts see earlier issues of the FEDERAL RESERVE BULLETIN, the
Federal Home Loan Bank Board Journal, and the Annual Report of the Federal
Deposit Insurance Corporation before November 1983.
2. Effective Dec. 1, 1983, IRA/Keogh (HR10) Plan accounts are not subject to
minimum deposit requirements.
3. Effective Dec. 14, 1982, depository institutions are authorized to offer a new
account with a required initial balance of $2,500 and an average maintenance
balance of $2,500 not subject to interest rate restrictions. No minimum maturity
Effective date
5'/2
51/4
1/1/84
12/31/80
1/5/83
12/14/82
5'/2
1/1/84
1/5/83
10/1/83
Effective date
51/2
5'A
5'A
7/1/79
12/31/80
1/5/83
12/14/82
9/1/82
1/5/83
10/1/83
period is required for this account, but depository institutions must reserve the
right to require seven days notice before withdrawals. When the average balance
is less than $2,500, the account is subject to the maximum ceiling rate of interest
for NOW accounts; compliance with the average balance requirement may be
determined over a period of one month. Depository institutions may not guarantee
a rate of interest for this account for a period longer than one month or condition
the payment of a rate on a requirement that the funds remain on deposit for longer
than one month.
4. Deposits of less than $2,500 issued to governmental units continue to be
subject to an interest rate ceiling of 8 percent.
Policy Instruments
1.17
A9
FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1984
1983
Type of transaction
1981
1982
1983
July
Oct.
Sept.
Aug.
Nov.
Dec.
Jan.
U . S . GOVERNMENT SECURITIES
Outright transactions (excluding matched
transactions)
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
317
23
13,794
-12,869
0
312
0
17,295
-14,164
0
484
0
18,887
-16,553
87
156
0
1,162
0
0
0
0
2,212
-5,344
0
0
0
902
-753
0
0
0
529
-636
0
155
0
2,828
-2,930
0
0
0
915
0
0
0
0
573
1,530
0
10
11
12
13
I to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,702
0
-10,299
10,117
1,797
0
-14,524
11,804
1,896
0
-15,533
11,641
481
0
-1,121
0
0
0
-2,212
3,130
0
0
-902
753
0
0
-256
636
820
0
-1,684
1,7%
0
0
-915
0
0
0
-487
1,530
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
393
0
-3,495
1,500
388
0
-2,172
2,128
890
0
-2,450
2,950
215
0
-41
0
0
0
516
1,300
0
0
0
0
0
0
-273
0
349
0
-250
700
0
0
0
0
0
300
-86
0
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
379
0
0
1,253
307
0
-601
234
383
0
-904
1,962
124
0
0
0
0
0
-516
914
0
0
0
0
0
0
0
0
151
0
-894
434
0
0
0
0
0
0
0
0
22
7.3
24
All maturities
Gross purchases
Gross sales
Redemptions
16,690
6,769
1,816
19,870
8,369
3,000
22,540
3,420
2,487
1,642
0
0
1,768
289
0
3,184
214
500
309
0
0
2,909
0
700
3,695
0
0
0
2,267
1,300
75
26
Matched transactions
Gross sales
Gross purchases
589,312
589,647
543,804
543,173
578,591
576,908
40,934
43,037
45,989
44,480
48,193
47,667
53,751
53,367
56,858
57,991
58,979
56,404
54,833
58,096
77
28
Repurchase agreements
Gross purchases
Gross sales
79,920
78,733
130,774
130,286
105,971
108,291
7,816
8,978
2,263
0
37,211
30,223
19,247
28,499
3,257
3,257
3,644
2,260
14,245
15,629
29
Net change in U.S. government securities
9,626
8,358
12,631
2,583
2,234
8,933
-9,326
3,342
2,504
-1,688
30
31
32
Outright transactions
Gross purchases
Gross sales
Redemptions
494
0
108
0
0
189
0
0
292
0
0
10
0
0
138
0
0
5
0
0
6
0
0
84
0
0
2
0
0
40
33
34
Repurchase agreements
Gross purchases
Gross sales
13,320
13,576
18,957
18,638
8,833
9,213
558
773
189
0
2,871
2,510
1,960
2,510
497
497
634
426
931
1,139
35
Net change in federal agency obligations
130
130
-672
-225
51
356
-557
-84
206
-248
1
2
13,899
6,746
0
1,816
17,067
8,369
0
3,000
18,888
3,420
0
2,400
666
0
0
0
1,768
289
0
0
3,184
214
0
500
309
0
0
0
1,435
0
0
700
3,695
0
0
0
0
1,967
0
1,300
FEDERAL AGENCY OBLIGATIONS
BANKERS ACCEPTANCES
36
Repurchase agreements, net
-582
1,285
-1,062
-203
209
913
-1,122
0
418
-418
37
Total net change in System Open Market
Account
9,175
9,773
10,897
2,155
2,493
10,203
-11,005
3,258
3,128
-2,354
NOTE: Sales, redemptions, and negative figures reduce holdings of the System
Open Market Account; all other figures increase such holdings. Details may not
add to totals because of rounding.
A10
1.18
DomesticNonfinancialStatistics • March 1983
FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements
Millions of dollars
End of month
Wednesday
1984
Account
Feb. 8
Feb. 1
1984
1983
Feb. 15
Feb. 22
Feb. 29
Dec.
Jan.
Feb.
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4 To depository institutions
5 Other
Acceptances—Bought outright
6 Held under repurchase agreements
Federal agency obligations
7 Bought outright
8 Held under repurchase agreements
U.S. government securities
Bought outright
9
Bills
10
Notes
11
Bonds
12
Total bought outright1
13 Held under repurchase agreements
14 Total U.S. government securities
11,120
4,618
499
11,119
4,618
518
11,118
4,618
530
11,117
4,618
531
11,116
4,618
534
11,121
4,618
415
11,120
4,618
498
11,116
4,618
534
1,292
252
0
2,218
0
376
0
1,020
0
918
418
0
1,020
0
0
0
0
0
0
0
0
418
0
0
8,585
0
8,585
0
8,568
0
8,568
0
8,568
0
8,645
208
8,605
0
8,568
0
66,224
63,634
20,814
150,672
64,305
63,634
20,814
148,753
63,123
62,921
21,527
147,571
56,399
62,921
21,527
140,847
0
140,847
65,810
63,934
20,814
150,558
1,384
151,942
65,806
63,634
20,814
150,254
0
150,254
56,399
62,921
21,527
140,847
0
140,847
16 Cash items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies2
19 All other3
20 Total assets
0
0
148,753
147,571
160,549
157,596
158,357
157,847
150,435
162,131
159,277
150,435
9,083
548
8,043
549
10,412
549
11,672
549
11,193
549
9,708
547
10,383
548
11,193
549
3,700
5,070
3,703
4,904
3,705
3,764
3,708
3,828
3,915
3,879
3,688
4,531
3,700
4,854
3,915
3,879
195,187
15 Total loans and securities
0
150,672
64,455
62,921
21,527
148,903
0
148,903
191,044
193,053
193,870
186,239
196,759
194,998
186,239
LIABILITIES
151,804
152,537
152,929
152,824
152,383
157,097
151,711
152,383
22
23
24
25
22,615
6,682
196
437
20,737
4,791
210
603
20,766
4,877
260
607
19,209
5,693
195
524
16,330
3,226
247
498
21,446
3,661
191
825
20,361
7,153
252
359
16,330
3,226
247
498
26 Total deposits
29,930
26,341
26,510
25,621
20,301
26,123
28,125
20,301
7,916
2,340
6,823
2,106
8,325
2,033
10,145
2,026
8,000
2,099
8,145
2,464
9,537
2,188
8,000
2,099
191,990
187,807
189,797
190,616
182,783
193,829
191,561
182,783
1,470
1,465
262
1,472
1,465
300
1,478
1,465
313
1,478
1,465
311
1,482
1,465
509
1,465
1,465
0
1,468
1,465
504
1,482
1,465
509
195,187
191,044
193,053
193,870
186,239
196,759
194,998
186,239
112,407
112,430
116,680
116,650
119,391
114,619
112,311
119,391
21 Federal Reserve notes
Deposits
To depository institutions
U.S. Treasury—General account
Foreign—Official accounts
Other
27 Deferred availability cash items
28 Other liabilities and accrued dividends4
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
36
LESS: Held by bank5
37
Federal Reserve notes, net
Collateral held against notes net:
38 Gold certificate account
39 Special drawing rights certificate account
40 Other eligible assets
41 U.S. government and agency securities
180,707
28,903
151,804
181,088
28,567
152,521
181,591
28,662
152,929
181,988
29,164
152,824
182,185
29,838
152,347
178,875
21,778
157,097
180,570
28,859
151,711
182,185
29,838
152,347
11,120
4,618
0
136,066
11,119
4,618
0
136,784
11,118
4,618
0
137,193
11,117
4,618
0
137,089
11,116
4,618
0
136,613
11,121
4,618
0
141,358
11,120
4,618
0
135,973
11,116
4,618
0
136,613
42 Total collateral
151,804
152,521
152,929
152,824
152,347
157,097
151,711
152,347
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Assets shown in this line are revalued monthly at market exchange rates.
3. Includes special investment account at Chicago of Treasury bills maturing
within 90 days.
4. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
5. Beginning September 1980, Federal Reserve notes held by the Reserve Bank
are exempt from the collateral requirement.
Reserve Banks; Banking Aggregates
1.19
FEDERAL RESERVE BANKS
All
Maturity Distribution of Loan and Security Holdings
Millions of dollars
End of month
Wednesday
Feb. 8
Feb. 1
1984
1983
1984
Type and maturity groupings
Feb. 15
Feb. 29
Feb. 22
Dec. 30
Jan. 31
Feb. 29
1 Loans—Total
2 Within 15 days
3 16 days to 90 days
4 91 days to 1 year
1,292
1,246
46
0
252
219
33
0
2,218
2,198
20
0
376
359
17
0
1,020
941
79
0
918
881
37
0
418
387
31
0
1,020
941
79
0
5 Acceptances—Total
6 Within 15 days
7 16 days to 90 days
8 91 days to 1 year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
418
418
0
0
0
0
0
0
0
0
0
0
9 U.S. government securities—Total
10 Within 15 days'
11 16 days to 90 days
1? 91 days to 1 year
n
Over 1 year to 5 years
14 Over 5 years to 10 years
15 Over 10 years
150,672
9,501
32,749
43,160
34,149
13,099
18,014
148,753
10,806
29,716
42,969
34,149
13,099
18,014
147,571
6,449
30,242
43,548
34,506
14,196
18,630
148,903
8,530
31,242
41,799
34,506
14,196
18,630
140,847
4,499
25,076
43,925
34,521
14,196
18,630
151,942
2,700
38,247
45,475
34,021
13,485
18,014
150,254
6,295
35,451
43,246
34,149
13,099
18,014
140,847
4,499
25,076
43,925
34,521
14,196
18,630
16 Federal agency obligations—Total
17 Within 15 days'
18 16 days to 90 days
19 91 days to 1 year
20 Over 1 year to 5 years
21 Over 5 years to 10 years
22 Over 10 years
8,585
118
779
1,676
4,290
1,319
403
8,585
118
779
1,676
4,290
1,319
403
8,568
176
643
1,654
4,373
1,319
403
8,568
176
643
1,654
4,373
1,319
403
8,568
162
688
1,587
4,378
1,350
403
8,853
386
598
1,937
4,196
1,333
403
8,605
212
685
1,696
4,290
1,319
403
8,568
162
688
1,587
4,378
1,350
403
1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.
A12
1.20
DomesticNonfinancialStatistics • March 1983
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS A N D MONETARY BASE •
Billions of dollars, averages of daily figures
Item
1980
Dec.
1981
Dec.
1982
Dec.
1983
1983
Dec.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS1
1 Total reserves2
2 Nonborrowed reserves
3 Required reserves....
4 Monetary base3
37.13
30.77
31.94
151.1
33.11
33.43
158.8
35.60
35.73
171.1
36.82
37.03
186.5
37.61
37.80
37.69
37.62
37.41
37.59
36.18
36.68
178.8
35.98
37.13
180.3
36.35
37.29
36.15
37.25
36.28 36.78
37.22 37.12
183.4 184.6
36.50
36.88
185.5
36.82
37.03
186.5
37.39
37.68
37.69
38.37
35.95 37.84
36.89 37.18
182.9 184.4
36.79
37.17
186.7
37.50
37.81
190.0
38.14
38.14
38.89
36.48 37.29
37.42 37.63
183.5 184.9
37.24
37.62
187.2r
38.12
38.33
190.6
181.1
182.1
Not seasonally adjusted
5 Total reserves2
6 Nonborrowed reserves
7 Required reserves
8 Monetary base3
33.4
34.61
36.96
38.37
36.64
36.79
37.34
37.06
31.72
32.89
154.4
33.98
34.29
161.9
36.33
36.46
174.4
37.60
37.81
190.0
35.69
36.19
177.8
35.15
36.31
179.6
35.89
36.83
181.7
35.52
36.62
181.8
40.66
41.92
41.85
38.89
38.28
38.42
38.95
38.66
38.97
40.15
162.5
41.29
41.60
169.7
41.22
41.35
179.3
38.12
38.33
190.6
37.33
37.83
179.8
36.78
37.93
181.6
37.50
38.44
183.7
37.12
38.21
183.8
NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS4
9 Total reserves2
10 Nonborrowed reserves
11 Required reserves
12 Monetary base3
• Data appearing in this issue of the BULLETIN are reprinted because historical
data on the money stock and reserves were not available at the time of
publication.
1. Reserve aggregates include required reserves of member banks and Edge
Act corporations and 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.
2. Reserve balances with Federal Reserve Banks plus vault cash at institutions
with required reserve balances plus vault cash equal to required reserves at other
institutions.
3. Consists of reserve balances and service-related balances and adjustments 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.
4. 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
phase-in 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 $2.9 billion; Feb. 12, 1981, an increase of $245
million; Mar. 12, 1981, an increase of $75 million; May 14, 1981, an increase of
37.92
$245 million; Sept. 3, 1981, a reduction of $1.1 billion; Nov. 12, 1981, an increase
of $210 million; Jan. 14,1982, a reduction of $60 million; Feb. 11, 1982 an increase
of $170 million; Mar. 4,1982, an estimated reduction of $2.0 billion; May 13, 1982,
an estimated increase of $150 million; Aug. 12, 1982 an estimated increase of $140
million; and Sept. 2, 1982, an estimated reduction of $1.2 billion; Oct. 28, 1982 an
estimated reduction of $100 million; Dec. 23, 1982 an estimated reduction of $800
million; Mar. 3, 1983 an estimated reduction of $1.9 billion; and Sept. 1, 1983, an
estimated reduction of $1.2 billion beginning with the week ended Dec. 23, 1981,
reserve aggregates have been reduced by shifts of reservable liabilities to IBFs.
On the basis of reports of liabilities transferred to IBFs by U.S. commercial banks
and U.S. agencies and branches of foreign banks, it is estimated that required
reserves were lowered on average by $60 million to $90 million in December 1981
and $180 million to $230 million in January 1982, mostly reflecting a reduction in
reservable Eurocurrency transactions. Also, beginning with the week ending
Apr. 20, 1983, required reserves were reduced an estimated $80 million as a result
of the elimination of reserve requirements on nonpersonal time deposits with
maturities of 2'/2 years or more to less than V/i years.
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
1.21
MONEY STOCK MEASURES A N D COMPONENTS
A13
•
Billions of dollars, averages of daily figures
1983
Item
1980
Dec.
1982
Dec.
1981
Dec.
1983
Dec.
Sept.
Oct.
Nov.
Dec.
Seasonally adjusted
MEASURES'
1
2
3
4
414.1
1,630.3
1,936.7
2,343.6
Ml
M2
M3
L2
440.6
1,794.9
2,167.9
2,622.0
478.2
1,959.5
2,377.6
2,8%.7
521.1
2,184.6
2,602.9
n.a.
517.1
2,145.4
2,544.9
3,137.9
517.9
2,161.6
2,563.2
3,155.2
518.3
2,174.6
2,588.7
n.a.
521.1
2,184.6
2,602.9
n.a.
116.2
4.1
266.8
26.9
400.7
731.7
258.9
123.2
4.5
236.4
76.6
344.4
828.6
302.6
132.8
4.2
239.8
101.3
359.3
859.1
333.8
146.0
4.8
243.1
127.1
312.3
792.1
329.0
143.0
4.7
243.4
126.0
320.6
757.7
317.7
144.2
4.8
242.9
126.0
318.8
771.0
319.9
145.3
4.8
241.6
126.5
316.4
784.4
324.8
146.0
4.8
243.1
127.1
312.3
792.1
329.0
SELECTED COMPONENTS
5
6
7
8
9
10
11
Currency
Travelers checks3
Demand deposits
Other checkable 5deposits4
Savings deposits
Small-denomination time deposits6
Large-denomination time deposits7
Not seasonally adjusted
MEASURES'
12
13
14
15
424.7
1,635.0
1,944.9
2,350.8
Ml
M2
M3
L2
452.1
1,799.6
2,175.9
2,629.7
491.0
1,964.5
2,385.3
2,904.7
535.3
2,191.4
2,611.4
n.a.
514.1
2,137.2
2,535.7
3,121.3
519.5
2,160.6
2,561.7
3,150.3
523.8
2,174.4
2,588.3
n.a.
535.3
2,191.4
2,611.4
n.a.
118.3
3.9
275.2
27.2
28.4
398.3
n.a.
728.3
125.4
4.3
244.0
78.4
36.1
342.1
n.a.
824.1
135.2
4.0
247.7
104.0
44.3
356.7
43.2
853.9
148.7
4.6
251.4
130.7
56.1
310.1
372.4
786.7
142.6
5.0
242.1
124.5
53.0
318.2
366.9
754.8
143.9
4.8
244.4
126.4
56.5
318.0
367.4
769.2
146.1
4.6
244.7
128.4
55.2
313.8
369.1
781.3
148.7
4.6
251.4
130.7
56.1
310.1
372.4
786.7
61.4
14.9
262.4
150.9
36.0
305.9
182.2
47.6
336.5
138.0
40.2
330.8
137.6
39.1
316.7
137.8
39.9
319.4
138.7
40.6
324.6
138.0
40.2
330.8
SELECTED COMPONENTS
16
17
18
19
20
21
22
23
Currency
Travelers checks3
Demand deposits
Other checkable deposits4
Overnight RPs and Eurodollars8
Savings deposits5
Money market deposit accounts 6
Small-denomination time deposits
Money market mutual funds
24 General purpose and broker/dealer
25 Institution only
26 Large-denomination time deposits7
A Data appearing in this issue of the BULLETIN are reprinted because historical
data on the money stock and reserves were not available at the time of
publication.
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) travelers checks of
nonbank issuers; (3) demand deposits at all commercial banks other than those
due to domestic banks, the U.S. government, and foreign banks and official
institutions less cash items in the process of collection and Federal Reserve float;
and (4) 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 money market deposit accounts, 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 travelers checks of nonbank issuers.
4. Includes ATS and NOW balances at all institutions, credit union share draft
balances, and demand deposits at mutual savings banks.
5. Excludes NOW and ATS accounts at commercial banks and thrift institutions and CUSDs at credit unions and all money market deposit accounts
(MMDAs).
6. Issued in amounts of less than $100,000 and includes retail RPs.
7. 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.
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 • March 1983
BANK DEBITS A N D DEPOSIT TURNOVER
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1983
Bank group, or type of customer
1981'
1982'
1983'
July
Aug.
Sept.
Oct.
Nov.
Dec.
Seasonally adjusted
DEBITS TO
Demand deposits2
1 All insured banks
2 Major New York City banks
3 Other banks
4 ATS-NOW accounts3
5 Savings deposits4
80,858.7
33,891.9
46,966.9
743.4
672.7
90,914.4
37,932.9
52,981.6
1,036.2
721.4
109,642.5
47,769.4
61,873.1
1,405.5
741.4
107,884.4
46,978.0
60,906.4
1,390.1
659.4
111,538.1
48,373.3
63,164.9
1,679.5
706.3
110,700.7
46,903.7
63,796.9
1,495.9
712.7
118,407.2
52,639.9
65,767.3
1,392.8
643.7
114,466.6
49,715.8
64,750.8
1,447.4
674.9
127,335.8
53,446.6
73,889.2
1,626.1
730.0
285.8
1,105.1
186.2
14.0
4.1
324.2
1,287.6
211.1
14.5
4.5
380.5
1,528.0
240.9
15.6
5.4
371.5
1,432.2
236.5
15.0
4.8
385.7
1,526.7
245.3
17.9
5.2
384.7
1,508.8
248.6
15.9
5.3
409.6
1,703.8
254.7
14.9
4.9
398.3
1,645.6
251.8
15.5
5.1
440.4
1,733.1
286.1
17.3
5.5
DEPOSIT TURNOVER
6
7
8
9
10
Demand deposits2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts3
Savings deposits4
Not seasonally adjusted
DEBITS TO
11
12
13
14
15
16
Demand deposits2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts3
MMDA5
Savings deposits4
17
18
19
20
21
22
Demand deposits2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts3
MMDA5
Savings deposits4
81,197.9
34,032.0
47,165.9
737.6
0
672.9
91,031.9
38,001.0
53,030.9
1,027.1
0
720.0
109,517.7
47,707.4
61,810.3
1,397.8
573.5
742.0
105,057.8
45,601.0
59,456.8
1,325.3
603.3
661.6
115,776.6
49,788.2
65,988.3
1,468.9
655.5
694.3
111,741.3
48,276.1
63,465.2
1,388.3
641.4
688.9
114,191.9
49,910.9
64,280.9
1,373.2
700.3
672.9
110,963.9
47.508.1
63,455.8
1,327.2
639.1
635.3
135,256.1
58,049.3
77,206.8
1,589.0
819.0
714.4
286.1
1,114.2
186.2
14.0
0
4.1
325.0
1,295.7
211.5
14.3
0
4.5
379.9
1,526.6
240.5
15.5
2.8
5.4
357.6
1,383.5
227.9
14.5
2.8
4.8
406.7
1,621.6
259.8
16.0
3.0
5.1
387.2
1,574.5
246.1
15.0
2.9
5.2
391.1
1,595.5
246.6
14.6
3.2
5.1
381.7
1,553.4
244.0
14.0
2.8
4.8
453.0
1,813.9
289.6
16.4
3.6
5.5
DEPOSIT TURNOVER
1. Annual averages of monthly figures.
2. Represents accounts of individuals, partnerships, and corporations and of
states and political subdivisions.
3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts authorized for automatic transfer to demand deposits (ATS). ATS data
availability starts with December 1978.
4. Excludes ATS and NOW accounts, MMDA and special club accounts, such
as Christmas and vacation clubs.
5. Money market deposit accounts.
NOTE. Historical data for demand deposits are available back to 1970 estimated
in part from the debits series for 233 SMSAs that were available through June
1977. Historical data for ATS-NOW and savings deposits are available back to
July 1977. Back data are available on request from the Banking Section, Division
of Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Commercial Banks
1.23
LOANS A N D SECURITIES
A15
All Commercial Banks'
Billions of dollars; averages of Wednesday figures
1981
1982
Dec.2
Dec.
1981
1983
1982
Dec.2
Dec.
1983
Category
Sept.
Oct.
Nov.
Dec.
Total loans and securities3
U.S. Treasury securities
3 Other securities
3
4 Total loans and leases
5
Commercial and industrial
loans
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
2
Oct.
Nov.
Dec.
Not seasonally adjusted
Seasonally adjusted
1
Sept.
1,316.3
1,412.1
1,520.3
1,532.9
1,548.9
1,566.8
1,326.1
1,422.5
1,521.6
1,538.2
1,555.8
1,578.1
111.0
231.4
973.9
130.9
239.1
1,042.0
176.9
247.1
1,096.3
182.3
246.5
1,104.1
186.2
247.1
1,115.7
188.1
247.0
1,131.7
111.4
232.8
981.8
131.5
240.6
1,050.4
176.3
247.1
1,098.2
180.8
246.9
1,110.4
185.0
247.4
1,123.4
188.9
248.5
1,140.7
358.0
285.7
185.1
21.9
392.4
303.2
191.8
24.7
402.6
326.2
207.7
23.7
404.7
329.2
212.0
25.2
407.8
332.1
215.4
26.2
413.1
335.2
219.5
27.2
360.1
286.8
186.4
22.7
394.7
304.1
193.1
25.5
402.2
326.9
209.1
23.4
405.4
330.5
213.6
25.0
409.6
333.4
216.7
26.7
415.5
336.2
221.0
28.1
30.2
33.0
12.7
47.2
31.1
36.1
13.1
49.5
30.8
38.9
12.9
53.5
30.4
39.1
13.0
50.6
29.8
39.3
13.0
52.1
28.8
39.6
13.1
55.1
31.2
33.0
12.7
49.2
32.1
36.1
13.1
51.5
30.9
38.2
12.9
53.4
30.6
38.3
13.0
52.6
30.2
39.6
13.0
54.1
29.7
39.6
13.1
57.5
1,319.1
1,415.0
1,522.8
1,535.5
1,551.4
1,569.2
1,328.9
1,425.4
1,524.2
1,540.5
1,558.6
1,580.5
976.7
2.8
1,045.0
2.9
1,098.9
2.6
1,106.7
2.6
1,118.2
2.5
1,134.1
2.4
984.7
2.8
1,053.3
2.9
1,100.8
2.6
1,112.9
2.6
1,126.0
2.5
1,143.1
2.4
360.2
394.6
404.6
406.7
409.7
414.9
362.3
396.9
404.2
407.4
411.6
417.3
2.2
8.9
2.3
8.5
2.0
8.3
2.0
8.9
1.9
8.6
1.8
8.2
2.2
9.8
2.3
9.5
2.0
8.3
2.0
8.8
1.9
8.9
1.8
9.0
349.1
334.9
14.2
19.0
383.8
373.5
10.3
13.5
394.3
381.8
12.5
14.3
395.8
383.2
12.7
14.7
399.2
386.9
12.3
14.5
404.9
394.7
10.2
12.2
350.3
334.3
16.1
20.0
385.2
372.7
12.4
14.5
393.9
381.6
12.3
14.7
396.6
383.9
12.8
15.0
400.8
388.0
12.7
14.8
406.5
393.9
12.5
13.1
MEMO
13
Total loans and 4securities plus
loans sold3
Total loans plus loans sold3'4 . . . .
Total loans sold to affiliates3 4 . . . .
Commercial and industrial loans
plus loans sold4
17
Commercial and industrial
loans sold4
18
Acceptances held
19 Other commercial and industrial loans
20
To U.S. addressees5
21
To non-U.S. addressees
22 Loans to foreign banks
14
15
16
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. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
5. United States includes the 50 states and the District of Columbia.
NOTE. Data are prorated averages of Wednesday estimates for domestically
chartered banks, based on weekly reports of a sample of domestically chartered
banks and quarterly reports of all domestically chartered banks. For foreignrelated institutions, data are averages of month-end estimates based on weekly
reports from large agencies and branches and quarterly reports from all agencies,
branches, investment companies, and Edge Act corporations engaged in banking.
A16
1.24
DomesticNonfinancialStatistics • March 1983
MAJOR NONDEPOSIT F U N D S OF COMMERCIAL BANKS1
Monthly averages, billions of dollars
1981
1982
Dec.
Dec/
1983
1984
source
1
2
3
4
5
6
Total nondeposit funds
Seasonally adjusted2
Not seasonally adjusted
Federal funds, RPs, and other 3
borrowings from nonbanks
Seasonally adjusted
Not seasonally adjusted
Net balances due to foreign-related
institutions, not seasonally
adjusted
Loans sold to affiliates, 4not
seasonally adjusted
Mar.
Apr.
June'
May'
July'
Aug.'
Sept.'
Oct.'
Nov.'
Dec.'
Jan.
96.3
98.1
83.3
84.9
76.0
76.8
80.3
79.0
90.9
90.5
88.4
90.1
76.5
78.6
82.6
87.0
83.4
86.1
80.2
82.8
97.1
99.4
100.6
102.2
97.7
99.4
111.8
113.5
128.1
129.7
135.5'
136.2
139.9
138.5
146.0
145.6
140.9
142.6
132.8
134.9
130.9
135.3
132.3
135.1
133.5
136.0
141.6
143.9
141.1
142.7
138.0
139.7
-18.1
-47.7
-62.4'
-62.5'
-57.8
-55.2
-59.9
-50.9
-51.5
-55.8
-47.0
-42.9
-42.7
2.8
2.9
3.0
3.0
2.8
2.7
2.7
2.6
2.6
2.6
2.5
2.4
2.4
-22.4
54.9
32.4
-39.6
72.2
32.6
-52.8'
79.7
26.8
-52.7'
80.3
27.6
-48.7
76.3
27.6
-49.2
75.8
26.6
-50.9
77.4
26.5
-45.3
73.6
28.3
-46.3
74.7
28.3
-48.5
76.4
27.9
-42.9
76.5
33.6
-39.7
75.2
35.5
-38.6
73.0
34.5
4.3
48.1
52.4
-8.1
54.7
46.6
-9.6'
56.2'
46.6
-9.8'
55.9
46.1
-9.1
55.8
46.7
-6.0
53.9
47.9
-8.0
55.2
47.2
-6.6
53.5
47.0
-5.1
53.5
48.3
-7.3
55.4
48.0
-4.1
53.1
49.0
-3.0
53.5
50.6
-4.8
52.9
48.0
59.0
59.2
71.2
71.2
74.8'
73.9
79.3
76.3
84.7
82.7
81.4
81.5
75.7
76.2
74.3
77.0
76.1
77.3
78.2
79.1
84.0
84.6
85.2
85.1
84.6
84.6
12.2
11.1
11.9
10.8
12.5
13.2
13.5
14.2
11.3
12.5
13.0
13.2
24.0
21.8
20.6
16.4
16.5
17.9
21.7
24.7
9.9
7.5
11.9
10.8
18.9
19.6
325.4
330.4
350.3
354.6
301.0'
300.3'
293.3'
296.9'
287.7
285.5
287.4
284.0
285.1
281.5
284.7
284.4
283.9
284.7
279.0
280.3
281.8
283.0
285.1
288.1
283.6
287.1
MEMO
7 Domestically chartered banks' net
positions with own foreign
branches, not seasonally
adjusted5
8 Gross due from balances
9 Gross due to balances
10 Foreign-related institutions' net
positions with directly related
institutions, not seasonally
adjusted6
11 Gross due from balances
12 Gross due to balances
Security RP borrowings
13 Seasonally adjusted'
14 Not seasonally adjusted
U.S. Treasury demand balances8
15 Seasonally adjusted
16 Not seasonally adjusted
Time deposits, $100,000 or more9
17 Seasonally adjusted
18 Not seasonally adjusted
1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks, New
York investment companies majority owned by foreign banks, and Edge Act
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. A v e r a g e s of W e d n e s d a y
figures.
Banking Institutions
1.25
ASSETS A N D LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
A17
Last-Wednesday-of-Month Series
Billions of dollars except for number of banks
1983
1982
Dec.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
DOMESTICALLY CHARTERED
COMMERCIAL BANKS'
1
2
3
4
5
6
Loans and securities, excluding
interbank
Loans, excluding interbank
Commercial and industrial
Other
U.S. Treasury securities
Other securities
1,370.3
1,000.7
356.7
644.0
129.0
240.5
1,392.2
1,001.7
358.0
643.7
150.6
239.9
1,403.8
1,005.1
357.9
647.2
155.5
243.3
1,411.9
1,007.5
356.7
650.8
160.9
243.5
1,435.1
1,025.6
360.1
665.6
166.0
243.5
1,437.4
1,029.1
361.1
668.0
165.1
243.3
1,457.0
1,043.4
363.0
680.4
167.5
246.1
1,466.1
1,049.7
364.0
685.7
171.2
245.2
1,483.0
1,060.3
367.0
693.3
176.8
245.9
1,502.3
1,075.5
372.8
702.7
180.4
246.4
1,525.2
1,095.1
380.8
714.4
181.4
248.7
184.4
23.0
25.4
67.6
68.4
168.9
19.9
20.5
67.1
61.5
170.1
20.4
23.9
66.1
59.6
164.5
20.3
22.4
65.6
56.3
176.9
21.3
18.8
69.7
67.1
168.7
20.7
20.6
67.1
60.3
176.9
21.0
22.5
69.0
64.4
160.0
20.8
15.4
66.7
56.9
164.0
20.5
19.7
67.1
56.6
179.0
22.3
17.6
70.9
69.0
190.5
23.3
18.6
75.6
73.0
7
8
9
10
11
Cash assets, total
Currency and coin
Reserves with Federal Reserve Banks
Balances with depository institutions .
Cash items in process of collection . . .
12
Other assets2
265.3
257.9
252.4
248.3
253.2
254.5
257.2
252.3
253.0
261.9
253.8
13
Total assets/total liabilities and capital . . .
1,820.0
1,818.9
1,826.3
1,824.8
1,865.2
1,860.6
1,891.0
1,878.4
1,900.0
1,943.9
1,969.5
14
15
16
17
Deposits
Demand
Savings
Time
1,361.8
363.9
296.4
701.5
1,374.2
333.4
419.2
621.6
1,368.0
329.2
426.9
611.9
1,370.8
324.5
440.2
606.1
1,402.7
344.4
445.3
613.1
1,396.5
334.2
447.5
614.8
1,420.1
344.7
449.0
626.4
1,408.1
328.1
448.8
631.2
1,419.5
331.3
451.5
636.8
1,459.2
358.1
458.3
642.8
1,482.6
371.0
460.7
650.8
18
19
20
Borrowings
Other liabilities
Residual (assets less liabilities)
215.1
109.2
133.8
211.3
103.5
130.0
224.0
102.3
132.0
214.1
104.7
135.1
221.2
104.3
137.0
217.5
105.5
141.0
217.2
107.6
146.1
217.8
107.1
145.4
226.8
106.5
147.2
219.7
112.6
152.4
216.3
117.9
152.8
10.7
14,787
9.6
14,819
17.8
14,823
2.7
14,817
19.3
14,826
19.3
14,785
14.8
14,795
20.8
14,804
22.5
14,800
2.8
14,799
8.8
14,796
1,429.7
1,054.8
395.3
659.5
132.8
242.1
1,451.3
1,054.5
395.9
658.6
155.3
241.5
1,460.8
1,055.7
393.5
662.2
160.2
244.9
1,467.6
1,056.4
391.7
664.7
166.1
245.2
1,491.5
1,075.2
395.3
679.9
171.3
245.1
1,494.1
1,078.8
397.7
681.2
170.3
245.0
1,515.4
1,094.9
400.6
694.3
172.7
247.8
1,525.4
1,102.5
402.7
699.8
176.1
246.9
1,541.8
1,112.2
405.3
706.8
182.0
247.7
1,563.2
1,129.2
412.0
717.2
185.9
248.1
1,586.8
1,149.3
420.1
729.2
186.9
250.6
193.5
21.3
20.0
84.0
68.2
185.2
20.7
21.9
81.2
61.4
193.3
21.1
24.0
82.8
65.4
174.7
20.9
16.6
79.3
58.0
178.4
20.5
20.8
79.5
57.6
195.0
22.3
19.1
83.6
70.0
205.0
23.4
19.7
88.0
74.0
MEMO
21
22
U.S. Treasury note balances included in
borrowing
Number of banks
ALL COMMERCIAL BANKING
INSTITUTIONS3
24
25
26
27
28
Loans and securities, excluding
interbank
Loans, excluding interbank
Commercial and industrial
Other
U.S. Treasury securities
Other securities
29
30
31
32
33
Cash assets, total
Currency and coin
Reserves with Federal Reserve Banks
Balances with depository institutions .
Cash items in process of collection . . .
200.7
23.0
26.8
81.4
69.4
185.5
19.9
22.0
81.0
62.6
186.3
20.4
25.4
79.8
60.7
180.3
20.3
23.8
78.9
57.3
34
Other assets2
341.7
325.4
317.8
309.5
318.1
318.7
324.6
320.9
318.8
329.7
321.3
1,998.0
2,033.3
2,021.0
2,039.1
2,088.0
2,113.1
23
35
Total assets/total liabilities and capital . . .
1,972.1
1,962.2
1,964.9
1,957.4
2,003.2
36
37
38
39
Deposits
Demand
Savings
Time
1,409.7
376.2
296.7
736.7
1,419.5
345.7
419.7
654.1
1,411.0
341.1
427.3
642.6
1,413.1
336.4
440.7
636.0
1,443.8
356.4
445.7
641.6
1,438.1
346.4
448.0
643.8
1,461.4
356.6
449.5
655.3
1,448.9
340.0
449.3
659.5
1,459.0
343.2
452.0
663.8
1,499.4
369.9
458.8
670.6
1,524.8
383.2
461.3
680.4
40
41
42
Borrowings
Other liabilities
Residual (assets less liabilities)
278.3
148.4
135.7
269.9
141.1
131.9
281.3
138.6
133.9
269.5
137.9
137.0
278.2
142.3
138.9
277.9
139.1
142.9
280.5
143.4
148.0
282.6
142.3
147.3
289.6
141.5
149.1
282.5
151.9
154.2
275.1
158.6
154.7
10.7
15,329
9.6
15,376
17.8
15,390
2.7
15,385
19.3
15,396
19.3
15,359
14.8
15,370
20.8
15,382
22.5
15,383
2.8
15,382
8.8
15,380
MEMO
43
44
U.S. Treasury note balances included in
borrowing
Number of banks
1. Domestically chartered commercial banks include all commercial banks in
the United States except branches of foreign banks; included are member and
nonmember banks, stock savings banks, and nondeposit trust companies.
2. Other assets include loans to U.S. commercial banks.
3. Commercial banking institutions include domestically chartered commercial
banks, branches and agencies of foreign banks, Edge Act and Agreement
corporations, and 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 estimates made on the last Wednesday of the
month based on a weekly reporting sample of foreign-related institutions and
quarter-end condition report data.
A18
1.26
DomesticNonfinancialStatistics • March 1983
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
1983
Account
Nov. 2
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
Securities
5 U.S. Treasury securities
6 Trading account
/ Investment account, by maturity
8
One year or less
9
Over one through five years
10
Over five years
11 Other securities
12 Trading account
13 Investment account
14
U.S. government agencies
15
States and political subdivisions, by maturity
16
One year or less
17
Over one year
18
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 . . . .v
32
Banks in foreign countries
33
Sales finance, personal finance companies, etc
34
Other financial institutions
35 To nonbank brokers and dealers in securities 2
36 To others for purchasing and carrying securities . . . .
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
Deposits
45 Demand deposits
46 Mutual savings banks
47 Individuals, partnerships, and corporations
48 States and political subdivisions
49 U.S. government
50 Commercial banks in the United States
51 Banks in foreign countries
52 Foreign governments and official institutions
53 Certified and officers' checks
54 Time and savings deposits
55 Savings
56
Individuals and nonprofit organizations
57
Partnerships and corporations operated for profit ..
58
Domestic governmental units
59
All other
60 Time
61
Individuals, partnerships, and corporations
62
States and political subdivisions
63
U.S. government
64
Commercial banks in the United States
65
Foreign governments, official institutions, and
banks
Liabilities for borrowed money
66 Borrowings from Federal Reserve Banks
67 Treasury tax-and-loan notes
68 All other liabilities for borrowed money3
69 Other liabilities and subordinated notes and debentures .
70 Total liabilities
71 Residual (total assets minus total liabilities)4
Nov. 9
49,878
7,144
33,431
689,197
49,636
7,372
29,220
689,244
53,639
8,013
31,786
688,605
49,096
6,403
34,728
685,393
53,442
8,071
32,089
693,383
47,811
7,914
32,122
694,972
52,076
7,626
35,366
694,913
53,484
8,258
34,678
695,166
57,643
9,170
35,642
697,514
56,304
9,114
47,190
14,730
29,246
3,213
84,140
6,346
77,794
15,982
58,146
7,833
50,312
3,667
57,065
9,383
47,682
15,139
29,318
3,225
83,673
5,799
77,874
15,885
58,356
7,942
50,415
3,633
58,501
9,701
48,800
15,274
30,734
2,792
83,614
5,719
77,894
15,881
58,348
7,863
50,485
3,665
57,373
8,178
49,194
15,442
30,932
2,820
84,536
6,227
78,309
16,021
58,618
7,992
50,626
3,670
58,500
9,045
49,455
15,469
31,244
2,743
83,946
5,675
78,271
15,905
58,676
7,984
50,692
3,690
60,023
9,855
50,168
15,952
31,353
2,862
84,723
6,491
78,231
15,893
58,641
8,133
50,507
3,697
59,209
8,603
50,606
15,677
31,824
3,105
84,333
5,782
78,551
16,150
58,702
7,996
50,706
3,699
58,181
8,342
49,839
15,398
31,248
3,192
85,150
6,164
78,986
16,205
59,105
7,964
51,140
3,676
56,665
7,686
48,979
14,941
30,838
3,200
85,735
5,912
79,823
16,152
60,010
7,953
52,057
3,661
45,751
33,202
9,394
3,156
516,660
216,767
4,858
211,909
204,653
7,256
139,441
81,642
44,083
32,288
8,391
3,404
518,144
218,604
5,329
213,274
205,928
7,346
139,261
81,756
42,523
30,276
9,181
3,067
517,700
216,684
4,358
212,326
205,055
7,271
139,634
81,980
40,574
27,998
9,406
3,170
516,651
216,292
3,904
212,387
205,124
7,263
139,686
82,425
44,815
33,587
8,369
2,860
519,866
217,410
4,862
212,548
205,251
7,298
139,903
82,898
43,761
30,628
9,612
3,522
520,265
218,307
4,842
213,465
206,194
7,270
139,911
83,448
44,777
31,122
10,065
3,590
520,386
218,202
4,684
213,518
206,447
7,070
140,288
84,171
39,568
26,686
9,202
3,680
526,046
219,732'
4,343
215,390'
208,187'
7,203
140,303
85,083
40,220
27,565
9,210
3,446
528,688
221,665'
4,619
217,046'
209,804'
7,242
140,001
85,976
7,891
8,606
9,655
15,581
9,840
3,332
7,284
16,620
4,979
8,680
503,001
10,987
143,736
934,374
8,202
8,604
9,322
15,888
9,213
3,378
7,221
16,696
5,018
8,703
504,423
10,992
146,917
933,382
7,997
8,587
9,297
15,438
10,387
3,186
7,208
17,300
4,997
8,737
503,967
10,989
142,369
935,401
8,131
8,087
9,178
15,023
10,590
3,195
7,161
16,883
4,979
8,763
502,909
11,015
140,841
927,476
7,879
8,411
9,224
15,246
11,232
3,180
7,153
17,329
4,973
8,771
506,122
11,044
142,090
940,119
7,814
8,208
9,299
15,505
10,685
3,200
7,068
16,817
4,973
8,827
506,465
11,063
144,500
938,383
7,647
7,335
9,322
15,653
10,544
3,204
7,157
16,862
4,976
8,816
506,594
11,058
9,110
7,700
9,139
15,365
11,550
3,229
7,207
17,627'
4,965
8,813
512,268
11,104
142,929
144,029
943,969
946,720
9,095
7,884
9,358
16,124
10,494
3,290
7,152
17,647'
4,970
8,826
514,893
11,136
140,567
951,672
178,265'"
707
136,456'
5,522
1,154
19,740
6,316
711
7,659
422,723
173,711
153,120
19,344
1,200
45
249,012
222,530
16,572
224
6,558
178,266'
713
136,268'
4,340
1,4%
18,620'
5,978
751
10,100
424,004'
174,186
153,311
19,671
1,164
40
249,818'
223,408'
16,609
211
6,460
182,702
734
138,397
4,844
2,314
20,147
6,921
899
8,448
423,360
174,195
153,138
19,780
1,232
45
249,166
222,521
16,648
218
6,598
172,648
563
133,377
4,691
2,026
18,289
6,000
936
6,766
425,988
173,928
152,788
19,926
1,171
43
252,060
225,008'
16.96C
214
6,728
185,419
677
141,338
5,120
1,938
20,124
6,498
1,276
8,448
426,856
174,763
153,398
20,109
1,216
40
252,093
225,114
16,617
214
7,059
177,669
623
136,614
4,796
1,820
19,234
6,058
821
7,702
427,672
176,017
154,440
20,265
1,255
57
251,655
224,902
16,368
232
7,119
182,850
674
141,563
4,863
2,237
18,785
5,995
760
7,973
427,187
175,169
153,673
20,222
1,222
52
252,018
224,907
16,530
217
7,305
184,936
587
141,620
5,266
1,188
20,005
5,929
954
9,386
428,095
174,814
153,483
20,048
1,202
80
253,281
225,765
16,752
215
7,370
193,574
633
147,568
5,754
2,059
21,620
6,461
897
8,582
429,545
174,788
153,254
20,242
1,208
84
254,757
227,183
16,624
209
7,661
Nov. 23
Nov. 30
Dec. 7
Dec. 14
Dec. 21
Dec. 28
3,128
3,129
3,180
3,150
3,089
3,034
3,059
3,180
3,080
379
15,032
168,664
87,328'
872,390
61,984
3,725
2,742'
171,90<y
90,616^
871,253
62,129
910
1,662
172,658
92,032
873,325
62,076
605
1,340
170,290
94,716
865,587
61,888
515
1,482
171,267
92,177
877,717
62,402
149
2,650
173,748
93,798
875,686
62,6%
1,938
2,219
169,103
98,066
881,363
420
9,382
163,414
98,360
884,606
62,114
706
6,087
162,051
97,320
889,283
62,389
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.
Nov. 16
62,606
4. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
NOTE: January and February data, which normally would appear in this issue of
the BULLETIN, will be published on a revised basis in the April issue. Weekly data
on the new basis are being published currently in the Board's H.4.2 statistical
release.
Weekly Reporting Banks
1.27
A19
LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1 Billlion or More on
December 31, 1977, Assets and Liabilities
Millions of dollars, Wednesday figures
1983
Account
Nov. 2
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
Securities
5 U.S. Treasury securities
6 Trading account
7 Investment account, by maturity
8
One year or less
9
Over one through five years
in
Over five years
ii Other securities
i? Trading account
13 Investment account
14
U.S. government agencies
15
States and political subdivisions, by maturity
One year or less
16
17
Over one year
Other bonds, corporate stocks and securities
18
Loans
19 Federal funds sold1
70 To commercial banks
21 To nonbank brokers and dealers in securities
7? To others
23 Other loans, gross
24 Commercial and industrial
25
Bankers acceptances and commercial paper
26
All other
U.S. addressees
77
78
Non-U.S. addressees
29 Real estate
30 To individuals for personal expenditures
To financial institutions
31
Commercial banks in the United States
Banks in foreign countries
32
Sales finance, personal finance companies, etc
33
34
Other financial institutions
3S To nonbank brokers and dealers in securities 2
36 To others for purchasing and carrying securities . . . .
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
Deposits
45 Demand deposits
46 Mutual savings banks
47 Individuals, partnerships, and corporations
48 States and political subdivisions
49 U.S. government
50 Commercial banks in the United States
51 Banks in foreign countries
52 Foreign governments and official institutions
53 Certified and officers' checks
54 Time and savings deposits
55
Savings
Individuals and nonprofit organizations
56
57
Partnerships and corporations operated for profit ..
Domestic governmental units
58
59
All other
60 Time
Individuals, partnerships, and corporations
61
62
States and political subdivisions
63
U.S. government
Commercial banks in the United States
64
65
Foreign governments, official institutions, and
banks
Liabilities for borrowed money
66 Borrowings from Federal Reserve Banks
67 Treasury tax-and-loan notes
68 All other liabilities for borrowed money3
69 Other liabilities and subordinated notes and debentures .
70 Total liabilities
71 Residual (total assets minus total liabilities)4
Nov. 9
Nov. 23
Nov. 30
Dec. 7
Dec. 14
Dec. 21
Dec. 28
46,875
6,585
30,516
46,935
6,755
26,405
50,398
7,381
28,915
45,894
5,821
31,783
50,369
7,393
29,203
45,117
7,236
29,381
49,034
6,846
32,321
50,347
7,447
31,567
54,359
8,307
32,476
638,763
638,837
638,598
635,667
643,166
644,015
644,065
643,972
645,913
51,254
9,020
42,234
13,025
26,266
2,943
76,264
6,167
70,097
14,291
52,501
7,164
45,336
3,305
51,944
9,288
42,656
13,376
26,324
2,955
75,820
5,651
70,169
14,192
52,705
7,306
45,399
3,272
53,424
9,576
43,848
13,601
27,724
2,522
75,766
5,537
70,229
14,223
52,702
7,228
45,474
3,304
52,232
8,095
44,136
13,674
27,911
2,550
76,677
6,077
70,600
14,350
52,945
7,360
45,585
3,305
53,353
8,953
44,400
13,759
28,166
2,475
76,110
5,558
70,552
14,246
52,976
7,345
45,631
3,329
54,785
9,743
45,041
14,204
28,243
2,594
76,889
6,334
70,555
14,242
52,969
7,500
45,469
3,343
53,931
8,490
45,442
13,940
28,634
2,867
76,453
5,604
70,849
14,493
53,005
7,357
45,648
3,351
52,889
8,240
44,649
13,677
28,016
2,956
77,284
6,025
71,259
14,556
53,374
7,325
46,049
3,329
51,330
7,560
43,770
13,220
27,593
2,957
77,699
5,752
71,947
14,516
54,126
7,300
46,826
3,305
40,363
28,536
8,727
3,101
483,520
204,614
4,654
199,959
192,817
7,142
130,566
72,344
38,874
27,808
7,684
3,381
484,890
206,381
5,134
201,247
194,024
7,224
130,411
72,416
37,751
26,132
8,584
3,035
484,356
204,486
4,166
200,321
193,163
7,157
130,724
72,614
36,315
24,271
8,917
3,128
483,150
203,962
3,695
200,268
193,120
7,148
130,737
72,999
40,237
29,452
7,978
2,807
486,177
205,076
4,667
200,410
193,256
7,153
130,930
73,402
38,422
25,888
9,046
3,487
486,717
206,102
4,652
201,449
194,317
7,132
130,931
73,892
39,944
27,011
9,380
3,554
486,526
205,913
4,473
201,440
194,517
6,923
131,269
74,526
34,824
22,800
8,382
3,642
491,745
207,207'
4,129
203,078'
196,027'
7,052
131,269
75,362
35,691
23,938
8,346
3,408
493,974
208,951'
4,386
204,565'
197,434'
7,131
130,927
76,070
7,404
8,466
9,438
14,928
9,768
3,073
7,082
15,836
4,394
8,243
470,883
10,554
139,606
7,719
8,480
9,113
15,230
9,122
3,115
7,022
15,880
4,431
8,259
472,199
10,558
142,651
7,540
8,473
9,093
14,798
10,287
2,922
7,012
16,407
4,410
8,289
471,657
10,554
138,045
7,628
7,976
8,962
14,401
10,506
2,926
6,967
16,085
4,389
8,318
470,443
10,580
136,490
7,407
8,291
9,006
14,587
11,151
2,909
6,958
16,460
4,390
8,320
473,466
10,606
137,699
7,354
8,095
9,081
14,861
10,592
2,933
6,872
16,004
4,390
8,407
473,920
10,626
140,116
7,128
7,217
9,102
15,010
10,450
2,937
6,961
16,012
4,391
8,399
473,736
10,620
138,463
8,526
7,575
8,929
14,728
11,441
2,962
7,014
16,732'
4,379
8,390
478,976
10,663
139,520
8,515
7,784
9,140
15,482
10,385
3,019
6,955
16,745'
4,381
8,400
481,193
10,690
135,943
872,900
872,141
873,892
866,236'
878,437
876,492
881,350
883,515
887,688
165,521
675
126,481
4,935
1,009
18,078
6,269
710
7,362
391,342
160,380
141,516
17,733
1,071
60
230,962
206,447
14,845
202
6,341
165,890'
674
126,396'
3,820
1,380
17,095'
5,918
750
9,856
392,352
160,740
141,620
18,026
1,039
54
231,612
207,214
14,839
190
6,241
169,740
702
128,262
4,258
2,088
18,475
6,880
898
8,178
391,644
160,680
141,416
18,099
1,106
59
230,964
206,332
14,885
198
6,368
159,885
534
123,235
4,137
1,857
16,722
5,952
935
6,512
394,295
160,538
141,202
18,232
1,046
58
233,758
208,763
15,161
194
6,490
172,163
649
130,841
4,522
1,757
18,481
6,453
1,275
8,184
395,347
161,334
141,793
18,406
1,080
55
234,013
209,042
14,866
195
6,822
164,870
595
126,370
4,293
1,673
17,676
6,002
809
7,452
396,187
162,455
142,731
18,554
1,098
71
233,732
208,937
14,680
212
6,869
169,474
648
130,941
4,289
1,973
17,196
5,949
760
7,719
395,635
161,667
142,006
18,526
1,069
67
233,968
208,836
14,857
198
7,017
171,322
561
130,952
4,448
1,044
18,367
5,881
954
9,114
396,405
161,310
141,800
18,363
1,066
80
235,095
209,567
15,110
196
7,042
179,632
602
136,702
5,024
1,886
19,868
6,408
845
8,296
397,529
161,209
141,577
18,504
1,070
57
236,320
210,765
14,988
190
7,296
3,128
3,129
3,180
3,150
3,089
3,034
3,059
3,180
3,080
379
14,220
158,270
85,198
3,686
2,580
161,053'
88,453
813
1,494
162,261
89,830
580
1,232
159,852
92,480
480
1,389
160,742
89,932
149
2,490
162,603
91,547
1,938
2,072
158,010
95,655
302
8,849
152,641
95,875
622
5,740
150,918
94,832
814,929
814,014
815,781
808,325
820,053
817,846
822,784
825,393
829,273
57,970
58,127
58,111
57,911
58,384
58,646
58,566
58,122
58,415
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.
Nov. 16
4. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
NOTE: January and February data, which normally would appear in this issue of
the BULLETIN, will be published on a revised basis in the April issue. Weekly data
on the new basis are being published currently in the Board's H.4.2 statistical
release.
A20
1.28
DomesticNonfinancialStatistics • March 1983
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures
1983
Account
Nov. 2
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 securities1
Securities
5 U.S. Treasury securities2
6 Trading account2
V Investment account, by maturity
8
One year or less
9
Over one through five years
10
Over five years
11 Other securities2 2
12 Trading account
13 Investment account
14
U.S. government agencies
15
States and political subdivisions, by maturity
16
One year or less
17
Over one year
18
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 4
36 To others for purchasing and carrying securities . . . .
37 To finance agricultural production
38 All other
39 LESS: Unearned income
40
Loan loss reserve
41 Other loans, net
42 Lease financing5 receivables
43 All other assets
44 Total assets
Deposits
45 Demand deposits
46 Mutual savings banks
47 Individuals, partnerships, and corporations
48 States and political subdivisions
49 U.S. government
50 Commercial banks in the United States
51 Banks in foreign countries
52 Foreign governments and official institutions
53 Certified and officers' checks
54 Time and savings deposits
55 Savings
56
Individuals and nonprofit organizations
57
Partnerships and corporations operated for profit ..
58
Domestic governmental units
59
All other
60 Time
61
Individuals, partnerships, and corporations
62
States and political subdivisions
63
U.S. government
64
Commercial banks in the United States
65
Foreign governments, official institutions, and
banks
Liabilities for borrowed money
66 Borrowings from Federal Reserve Banks
67 Treasury tax-and-loan notes
68 All other liabilities for borrowed money6
69 Other liabilities and subordinated notes and debentures .
70 Total liabilities
71 Residual (total assets minus total liabilities)7
Nov. 9
Nov. 23
Nov. 30
Dec. 7
Dec. 14
Dec. 21
Dec. 28
14,002
978
6,069
148,231
19,123
1,302
3,579
146,850
15,874
1,383
5,099
147,867
13,488
814
5,434
147,994
16,566
1,335
5,264
150,616
14,245
1,408
5,805
148,742
16,933
1,290
6,822
150,019
16,935
1,265
5,5%
149,697
17,190
1,233
5,007
151,043
9,440
2,455
6,078
907
9,845
2,899
6,039
907
10,366
3,083
6,847
435
10,530
3,123
6,972
435
10,461
2,972
7,053
436
10,041
2,667
6,854
520
9,904
2,430
6,778
695
9,506
2,421
6,318
766
9,069
2,416
5,894
759
14,919
1,476
12,712
1,895
10,817
731
15,063
1,476
12,855
2,004
10,851
732
14,998
1,408
12,864
1,974
10,890
726
15,152
1,401
13,010
2,019
10,990
741
15,145
1,396
13,007
1,940
11,067
742
15,254
1,389
13,131
2,011
11,120
734
15,316
1,389
13,191
2,029
11,162
736
15,634
1,387
13,505
1,985
11,520
741
16,211
1,384
14,086
2,047
12,039
741
11,907
5,361
4,821
1,724
116,052
57,958
1,727
56,232
54,422
1,810
20,646
12,693
10,571
4,615
4,042
1,914
115,461
58,687
1,815
56,871
55,081
1,791
20,580
12,717
10,183
3,968
4,362
1,853
116,415
58,314
1,452
56,862
55,090
1,772
20,622
12,718
11,390
4,912
4,603
1,876
115,038
57,500
1,151
56,349
54,554
1,795
20,630
12,791
13,136
7,629
3,951
1,557
116,010
57,644
1,563
56,081
54,288
1,793
20,580
12,829
11,678
5,229
4,375
2,074
115,928
58,252
1,478
56,774
54,973
1,801
20,496
12,937
13,195
6,458
4,618
2,119
115,787
58,113
1,417
56,696
54,883
1,812
20,522
13,040
10,580
4,057
4,166
2,357
118,135
57,968
1,171
56,797
54,939
1,858
20,613
13,168
11,891
5,644
4,077
2,169
118,023
58,793
1,307
57,486
55,622
1,864
20,412
13,286
1,605
2,984
3,992
4,230
6,089
668
691
4,495
1,459
2,627
111,966
2,027
64,354
235,661
1,618
2,753
3,673
4,356
5,115
681
698
4,584
1,460
2,629
111,372
2,029
65,971
238,855
1,659
2,901
3,678
4,091
6,405
648
701
4,678
1,454
2,642
112,320
2,046
63,505
235,775
1,607
2,564
3,529
3,979
6,669
624
661
4,481
1,456
2,661
110,922
2,047
62,775
232,553
1,589
2,831
3,625
4,112
7,058
590
661
4,491
1,457
2,679
111,874
2,048
62,678
238,507
1,597
2,732
3,749
4,086
6,387
607
615
4,470
1,458
2,702
111,768
2,035
64,108
236,343
1,573
2,438
3,718
4,220
6,412
628
637
4,486
1,460
2,722
111,604
2,038
62,396
239,498
2,180
2,765
3,772
4,295
7,476
662
652
4,583
1,464
2,693
113,978
2,077
61,279
236,850
2,122
2,932
3,797
4,454
6,113
665
611
4,838
1,474
2,678
113,872
2,067
60,530
237,071
45,951
312
31,986
734
169
4,048
5,043
522
3,137
73,938
27,456
24,434
2,797
186
39
46,482
40,880
2,030
15
2,278
51,064
341
33,197
592
549
4,978
4,678
571
6,157
73,844
27,634
24,498
2,892
205
38
46,210
40,689
2,047
15
2,209
47,842
358
31,796
626
573
4,162
5,628
686
4,013
73,805
27,780
24,622
2,906
210
42
46,025
40,261
2,101
19
2,362
44,301
232
30,532
606
410
4,355
4,626
725
2,814
74,919
27,844
24,678
2,938
188
40
47,075
41,257
2,101
18
2,439
50,404
281
34,014
556
375
5,103
5,135
1,055
3,886
75,133
27,973
24,828
2,932
175
38
47,160
41,257
2,037
18
2,626
46,674
263
31,860
612
372
4,480
4,800
632
3,655
74,994
28,115
24,909
2,963
188
55
46,878
41,120
1,968
18
2,5%
49,388
352
34,109
598
523
4,719
4,647
574
3,866
74,944
28,050
24,870
2,957
173
50
46,893
41,018
2,009
15
2,689
49,528
265
33,372
626
272
4,567
4,579
770
5,078
75,071
28,237
24,982
3,019
171
66
46,833
40,798
2,115
15
2,620
51,529
278
35,433
608
571
4,518
5,201
661
4,258
75,251
28,234
25,048
2,945
172
68
47,017
41,018
2,101
14
2,724
1,278
1,251
1,281
1,260
1,221
1,175
1,161
1,285
1,159
300
3,674
55,783
36,087
215,732
19,929
2,040
603
54,475
36,737
218,764
20,092
350
359
56,099
37,218
215,674
20,102
400
336
55,027
37,579
212,562
19,991
300
447
56,899
35,215
218,398
20,109
608
57,466
36,301
216,043
20,300
1,790
636
54,699
37,786
219,243
20,255
2,723
51,806
37,816
216,944
19,906
305
1,705
51,443
36,597
216,830
20,242
1. Excludes trading account securities.
2. Not available due to confidentiality.
3. Includes securities purchased under agreements to resell.
4. Other than financial institutions and brokers and dealers.
5. Includes trading account securities.
6. Includes federal funds purchased and securities sold under agreements to
repurchase.
Nov. 16
7. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
NOTE: January and February data, which normally would appear in this issue of
the BULLETIN, will be published on a revised basis in the April issue. Weekly data
on the new basis are being published currently in the Board's H.4.2 statistical
release.
Weekly Reporting Banks
1.29
LARGE WEEKLY REPORTING COMMERCIAL BANKS
A21
Balance Sheet Memoranda
Millions of dollars, Wednesday figures
1983
Account
Nov. 2
Nov. 9
1 Total loans (gross) and securities adjusted1
2 Total loans (gross) adjusted1
3 Demand deposits adjusted2
661,762
521,318
107,492'
662,475
521,737
108,514'
664,066
521,951
106,603
663,005
521,096
103,238
665,662
523,216
109,914
670,330
525,584
108,804
669,936
526,394
109,752
673,148
529,818
110,258
674,649
532,249
112,252
4 Time deposits in accounts of $100,000 or more
5 Negotiable CDs
6 Other time deposits
140,573r
88,424
52,150'
140,759'
88,322
52,437'
140,107
87,427
52,680
142,777
89,542
53,235
142,516
89,424
53,092
142,021
88,931
53,089
142,346
89,378
52,969
143,376
89,922
53,454
144,842'
91,714'
53,128
2,594
2,001
592
2,536
1,945
591
2,559
1,963
596
2,490
1,904
586
2,385
1,839
546
2,432
1,850
583
2.401
1,831
570
2,386
1,837
549
2,364
1,810
555
10 Total loans (gross) and securities adjusted1
11 Total loans (gross) adjusted1
12 Demand deposits adjusted2
615,461
487,943
99,558
615,999
488,235
100,497
617,625
488,435
98,778
616,476
487,567
95,411
619,018
489,554
101,555
623,570
491,896
100,404
622,716
492,332
101,272
625,416
495,243
101,564
626,241
497,212
103,518
13 Time deposits in accounts of $100,000 or more
14 Negotiable CDs
15 Other time deposits
131,729
83,424
48,305
131,815
83,279
48,536
131,178
82,416
48,762
133,737
84,523
49,214
133,724
84,634
49,089
133,332
84,202
49,130
133,538
84,473
49,065
134,471
84,896
49,575
135,798'
86,546'
49,252
2,544
1,966
578
2,486
1,909
578
2,510
1,928
582
2,434
1,869
565
2,331
1,806
525
2,369
1,807
562
2,338
1,788
549
2,323
1,795
529
2,302
1,767
534
145,350
120,992
27,732
144,707
119,799
26,414
146,336
120,971
27,233
145,592
119,910
26,047
145,534
119,928
28,360
146,076
120,780
27,577
146,170
120,951
27,214
147,617
122,478
27,754
147,429
122,148
29,249
30,978
18,528
12,450
30,574
18,143
12,431
30,573
18,015
12,558
31,608
19,118
12,490
31,546
18,990
12,556
31,157
18,709
12,448
31,297
18,873
12,424
31,083
18,522
12,561
31,357
19,001
12,356
Nov. 16
Nov. 23
Nov. 30
Dec. 7
Dec. 14
Dec. 21
Dec. 28
BANKS WITH ASSETS OF $750 MILLION OR MORE
7 Loans sold outright to affiliates3
8 Commercial and industrial
9 Other
BANKS WITH ASSETS OF $1 BILLION OR MORE
16 Loans sold outright to affiliates3
17 Commercial and industrial
18 Other
BANKS IN NEW YORK CITY
19 Total loans (gross) and securities adjusted14
20 Total loans (gross) adjusted1
21 Demand deposits adjusted2
22 Time deposits in accounts of $100,000 or more
23 Negotiable CDs
24 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.
NOTE: January and February data, which normally would appear in this issue of
the BULLETIN, will be published on a revised basis in the April issue. Weekly data
on the new basis are being published currently in the Board's H.4.2 statistical
release.
A22
1.30
DomesticNonfinancialStatistics • March 1983
LARGE WEEKLY REPORTING BRANCHES A N D AGENCIES OF FOREIGN BANKS
Assets and Liabilities
Millions of dollars, Wednesday figures
1983
Account
Nov. 2
Nov. 9
Nov. 23
Nov. 16
Nov. 30
Dec. 7
Dec. 14
Dec. 21
Dec. 28
1 Cash and due from depository institutions.
2 Total loans and securities
3 U.S. Treasury securities
4 Other securities 1
5 Federal funds sold
6 To commercial banks in United States ..
7 To others
8 Other loans, gross
9 Commercial and industrial
10
Bankers acceptances and commercial
paper
11
Mother
12
U.S. addressees
13
Non-U.S. addressees
14 To financial institutions
15
Commercial banks in United States...
16
Banks in foreign countries
17
Nonbank financial institutions
18 For purchasing and carrying securities ..
19 All other
20 Other assets (claims on nonrelated
parties)
21 Net due from related institutions
22 Total assets
5,998
42,029
4,711
972
2,496
2,383
113
33,849
18,536
6,066
43,487
4,664
957
4,291
4,159
132
33,573
18,742
6,230
43,173
4,755
958
3,669
3,552
117
33,791
18,960
6,552
43,878
4,675
951
3,874
3,626
248
34,377
18,913
6,605
43,668
4,594
966
3,457
3,282
175
34,651
19,313
6,180
43,048
4,648
996'
2,865
2,707
158
34,539
19,191
6,370
44,911'
4,628
1,022'
3,841
3,519
322
35,419'
19,661
7,213
45,054'
4,604
1,038'
3,971
3,722
249
35.44C
19,611
6,070'
45,60C
4,614
1,066
4,476
4,195
281
35,445'
19,463
2,855
15,681
13,792
1,889
11,053
8,628
1,800
626
683
3,577
2,839
15,903
14,047
1,857
10,672
8,474
1,620
578
590
3,569
2,899
16,061
14,216
1,846
10,607
8.473
1,542
591
626
3,597
3,064
15,848
13,926
1,923
11,232
8,974
1,600
657
480
3,753
3,069
16,244
14,417
1,827
10,596
8,255
1,660
681
948
3,793
3,121
16,070
14,243
1,828
10,707
8,394
1,642
671
964
3,677
3,294
16,367
14,533
1,834
11,001'
8,662
1,639'
700
1,132
3,626
3,254
16,357
14,546
1,811
11,403'
9,199
1,562
642
822
3,603
3,256
16,207
14,377
1,830
11,066'
8,820
1,575'
671
1,106
3,810
11,905
12,552
72,484
11,926
12,558
74,037
12,130
12,042
73,576
12,359
12,449
75,238
12,642
11,769
74,684
12,738
12,654
74,621
12,673
11,578'
75,532
12,967
9,778'
75,011'
12,421
9,953'
74,045'
23 Deposits or credit balances2
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 3
31 Borrowings
32 Federal funds purchased4
33
From commercial banks in United
States
34
From others
35 Other liabilities for borrowed money....
36
To commercial banks in United States
37
To others
38 Other liabilities to nonrelated parties
39 Net due to related institutions
40 Total liabilities
19,380
202
1,775
19,422
154
1,799
19,257
157
1,768
20,387
151
1,874
20,662
143
1,792
20,625
145
1,673
21,533'
125
1,935'
22,495'
165
2,139'
22,485
174
1,930
873
901
17,404
853
946
17,468
786
982
17,331
855
1,019
18,362
882
910
18,728
820
853
18,808
853'
1,082'
19,473
849'
1,289'
20,191
914
1,016
20,381
14,776
2,627
34,666
11,102
14,786
2,682
34,638
10,685
14,584
2,747
34,265
11,190
15,655
2,707
34,025
10,063
15,999
2,729
33,365
10,157
15,935
2,873
33,755
10,880
16,461
3,012
33,382
10,453
17,046
3,145
31,115
7,919
17,217
3,163
30,862
7,887
9,152
1,951
23,564
19,647
3,917
12,799
5,639
72,484
8,474
2,211
23,953
20,275
3,678
12,685
7,292
74,037
9,065
2,126
23,074
19,466
3,608
13,016
7,039
73,576
8,035
2,028
23,962
19,913
4,049
13,404
7,422
75,238
8,530
1,628
23,208
19,390
3,817
13,377
7,280
74,684
8,974
1,906
22,875
19,007
3,868
13,626
6,615
74,621
8,421
2,032
22,929
19,165
3,764
13,555'
7,063
75,532
5,798
2,121
23,196
19,475
3,721
14,548'
6,854'
75,011'
5,826
2,061
22,976
19,353
3,622
13,351
7,347'
74,045'
31,018
25,334
30,854
25,232
31,147
25,434
31,277
25,651
32,130
26,570
31,947
26,303
32,730'
27,079'
32,133'
26,490'
32,586'
26,906'
MEMO
41 Total loans (gross) and securities
adjusted*
42 Total loans (gross) adjusted5
1.
2.
3.
4.
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.
5. Excludes loans and federal funds transactions with commercial banks in
United States.
NOTE: January and February data, which normally would appear in this issue of
the BULLETIN, will be published on a revised basis in the April issue. Weekly data
on the new basis are being published currently in the Board's H.4.2 statistical
release.
IPC Demand Deposits
1.31
A23
GROSS D E M A N D DEPOSITS of Individuals, Partnerships, and Corporations1
Billions of dollars, estimated daily-average balances
Commercial banks
Type of holder
1978
Dec.
19792
Dec.
Mar.
1 All holders—Individuals, partnerships, and
corporations
?
3
4
5
6
Financial business
Nonfinancial business
Consumer
Foreign
Other
1983
1982
1981
Dec.
1980
Dec.
Sept.
June
Dec.
Mar.
June
294.6
302.2
315.5
288.9
268.9
271.5
276.7
295.4
283.5
289.5
27.8
152.7
97.4
2.7
14.1
27.1
157.7
99.2
3.1
15.1
29.8
162.8
102.4
3.3
17.2
28.0
154.8
86.6
2.9
16.7
27.8
138.7
84.6
3.1
14.6
28.6
141.4
83.7
2.9
15.0
31.9
142.9
83.3
2.9
15.7
35.5
151.7
88.1
3.0
17.1
34.0
144.4
85.5
3.2
16.4
35.1
147.7
86.9
3.0
16.8
Weekly reporting banks
1978
Dec.
19794
Dec.
Mar.
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
June
Sept.
Dec.
Mar.
June
147.0
139.3
147.4
137.5
126.8
127.9
132.1
144.0
140.7
141.9
19.8
79.0
38.2
2.5
7.5
20.1
74.1
34.3
3.0
7.8
21.8
78.3
35.6
3.1
8.6
21.0
75.2
30.4
2.8
8.0
20.2
67.1
29.2
2.9
7.3
20.2
67.7
29.7
2.8
7.5
23.4
68.7
29.6
2.7
7.7
26.7
74.2
31.9
2.9
8.4
25.2
72.7
31.2
3.0
8.6
26.3
73.1
30.4
2.9
9.3
1. Figures include cash items in process of collection. Estimates of gross
deposits are based on reports supplied by a sample of commercial banks. Types of
depositors in each category are described in the June 1971 BULLETIN, p. 466.
2. Beginning with the March 1979 survey, the demand deposit ownership
survey sample was reduced to 232 banks from 349 banks, and the estimation
procedure was modified slightly. To aid in comparing estimates based on the old
and new reporting sample, the following estimates in billions of dollars for
December 1978 have been constructed using the new smaller sample; financial
business, 27.0; nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and
other, 15.1.
1983
1982
1981
Dec.
1980
Dec.
3. Demand deposit ownership survey estimates for June 1981 are not available
due to unresolved reporting errors.
4. After the end of 1978 the large weekly reporting bank panel was changed to
170 large commercial banks, each of which had total assets in domestic offices
exceeding $750 million as of Dec. 31, 1977. See "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.
A24
1.32
DomesticNonfinancialStatistics • March 1983
COMMERCIAL PAPER A N D BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1984
1983
1978
Dec.
Instrument
1979'
Dec.
1980
Dec.
1981
Dec.
1982
Dec.2
Aug.
Sept.
Nov.
Oct.
Dec.
Jan.
Commercial paper (seasonally adjusted unless noted otherwise)
83,438
1 All issuers
2
3
4
5
6
Financial companies3
Dealer-placed paper*
Total
Bank-related (not seasonally
adjusted)
Directly placed paper5
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies6
112,803
124,374
165,455
166,208
174,669
176,775
175,924
180,206
185,407
183,318
12,181
17,359
19,599
29,904
34,067
40,749
39,963
37,323
40,890
40,994
39,775
3,521
2,784
3,561
6,045
2,516
2,353
2,303
2,195
2,341
2,441
2,087
51,647
64,757
67,854
81,715
84,183
90,628
91,600
92,819
93,820
96,692
97,921
12,314
19,610
17,598
30,687
22,382
36,921
26,914
53,836
32,034
47,958
35,085
43,292
34,856
45,212
34,622
44,977
35,001
45,496
35,566
47,721
37,560
45,622
Bankers dollar acceptances (not seasonally adjusted)
33,700
69,226
79,543
73,977
73,569
72,902
77,919
78,309
73,450
9,865
8,327
1,538
10,564
8,963
1,601
10,857
9,743
1,115
10,910
9,471
1,439
8,498
7,466
1,033
9,205
7,986
1,219
9,501
8,212
1,289
10,894
9,558
1,337
9,355
8,125
1,230
9,546
7,814
1,732
704
1,382
33,370
776
1,791
41,614
195
1,442
56,731
1,480
949
66,204
209
717
65,961
1122
622
64,942
0
483
62,917
0
573
66,452
418
729
68,225
0
729
63,174
8,574
7,586
17,541
Basis
14 Imports into United States
15 Exports from United States
16 All other
54,744
587
664
24,456
Holder
8 Accepting banks
9 Own bills
10 Bills bought
Federal Reserve Banks
11 Own account
12 Foreign correspondents
13 Others
45,321
8,579
7,653
927
7 Total
10,270
9,640
25,411
11,776
12,712
30,257
14,765
15,400
39,060
17,683
16,328
45,531
14,487
16,476
43,013
14,653
16,215
42,701
14,829
16,036
42,036
14,906
17,209
45,806
15,649
16,880
45,781
15,028
16,159
42,263
1. A change in reporting instructions results in offsetting shifts in the dealerplaced and directly placed financial company paper in October 1979.
2. Effective Dec. 1, 1982, there was a break in the commercial paper series. The
key changes in the content of the data involved additions to the reporting panel,
the exclusion of broker or dealer placed borrowings under any master note
agreements from the reported data, and the reclassification of a large portion of
bank-related paper from dealer-placed to directly placed.
3. Institutions engaged primarily in activities such as, but not limited to,
commercial, savings, and mortgage banking; sales, personal, and mortgage
1.33
financing; factoring, finance leasing, and other business lending; insurance
underwriting; and other investment activities.
4. Includes all financial company paper sold by dealers in the open market.
5. As reported by financial companies that place their paper directly with
investors.
6. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum
Effective date
Effective Date
1981—Nov.24
Dec. 1
16.00
1982—Feb. 18
23
July 20
29
Aug.
17.00
16.50
2
16
18
15.75
16.00
15.50
15.00
14.50
14.00
1982—Aug. 23
Oct. 7
14
Nov. 22
1983—Jan. 11
Feb. 28
Aug. 8
1982—Jan....
Feb. ..
Rate
13.50
13.00
12.00
11.50
11.00
Month
1982-
July
Aug
Sept
Oct
10.50
11.00
15.75
16.56
Dec
1983-—Jan
Feb
Average
rate
16.50
16.50
16.50
16.50
16.26
14.39
13.50
12.52
11.85
11.50
11.16
10.98
Month
1983—Mar.
Apr.
May
June
July
Aug.
Sept
Oct.
Nov.
Dec.
1984—Jan.
Feb.
Business Lending
1.34
A25
TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 7-11, 1983
Size of loan (in thousands of dollars)
All
sizes
100-499
25-49
1,000
and over
500-999
SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS
1
2
3
4
5
6
7
8
9
10
11
12
13
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
With fixed rates
With floating rates
Weighted-average interest rate (percent per annum) .
Interquartile range1
With fixed rates
With floating rates
Percentage of amount of loans
With floating rate
Made under commitment
With no stated maturity
With one-day maturity
26,906,178
130,514
1.3
.7
2.5
10.95
10.27-11.18
10.80
11.20
460,408
13,836
3.7
3.6
3.8
13.78
12.55-14.56
13.79
13.78
554,091
8,922
4.0
3.9
4.1
13.23
12.36-13.80
13.70
12.93
2,042,372
11,597
4.9
3.8
5.6
12.34
11.46-12.96
12.63
12.21
11.32-12.55
11.24
12.14
35.7
31.3
15.7
60.0
61.3
37.2
26.7
69.2
43.8
22.7
.5
64.8
65.2
38.5
3.3
31.8
73.4
1,873,256
750
55.5
57.1
55.2
36.7
68.4
12.5
17.4
30.5
27.1
2.1
.0
.2
726,993
I,077
3.1
1.5
4.8
22,442,908
3,364
679,407
91,718
3.6
3.2
4.5
13.91
12.68-14.85
14.26
13.28
II.82
.8
.4
1.7
10.59
10.24-10.75
10.54
10.68
10.0
20.7
LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS
14
15
16
17
18
19
20
21
22
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
With fixed rates
With floating rates
Weighted-average interest rate (percent per annum)
Interquartile range1
With fixed rates
With floating rates
Percentage of amount of loans
23 With floating rate
24 Made under commitment
2,834,473
19,150
50.8
50.7
50.8
12.94
11.38-12.68
15.19
12.13
367,008
16,303
39.0
42.0
36.3
14.03
12.68-14.65
14.95
13.21
426,052
1,851
40.7
45.9
36.6
17.89
12.40-28.42
24.52
12.60
168,157
246
48.7
55.0
47.6
12.03
11.46-12.68
11.51
12.12
11.93
73.6
59.1
52.9
42.7
55.6
45.3
85.8
80.6
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
With fixed rates
With floating rates
Weighted-average interest rate (percent per annum)
Interquartile range1
With fixed rates
With floating rates
34
35
36
37
38
Percentage of amount of loans
With floating rate
Secured by real estate
Made under commitment
With no stated maturity
With one-day maturity
Type of construction
39 1- to 4-family
40 Multifamily
41 Nonresidential
LOANS TO FARMERS
42
43
44
45
46
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per annum)
Interquartile range1
47
48
49
50
51
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
13.25
12.13-13.88
13.56
13.09
110,531
3,315
7.1
7.7
6.3
14.58
13.42-15.56
14.94
14.16
65.1
92.4
64.4
4.0
52.7
85.3
75.1
2.7
46.5
98.0
59.7
2.9
38.0
95.8
32.6
.0
6.8
.0
33.9
15.9
50.3
47.5
3.5
49.0
67.3
4.5
28.3
76.1
9.9
14.0
8.2
.0
.0
13.64
12.68-14.50
177,981
11,551
7.6
14.25
13.42-14.71
14.00
13.87
13.37
13.91
12.93
14.22
14.30
14.26
14.50
14.32
13.99
15.13
14.11
14.09
14.08
6.8
64.8
8.2
12.3
14.19
13.31-14.89
14.73
13.32
468,178
206
7.4
9.3
12.57
12.12-13.24
12.43
12.63
85.7
95.9
74.7
6.4
70.5
91.4
63.9
3.2
28.5
22.4
49.1
62.8
6.6
.0
.0
16.1
21.1
100-249
137,726
36,687
6.4
14.30
13.88-14.74
1,467,055
58,634
66.6
178,568
806
13.2
13.5
13.2
13.02
12.40-13.30
12.90
13.04
10-24
All sizes
1. Interest rate range that covers the middle 50 percent of the total dollar
amount of loans made.
2. Fewer than 10 sample loans.
83,576
1,303
9.6
150,071
17,606
6.9
8.5
5.4
14.16
13.43-14.93
13.98
14.32
990,925
23,236
8.5
9.0
10.68
500 and over
50-99
25-49
CONSTRUCTION AND LAND DEVELOPMENT LOANS
25
26
27
28
29
30
31
32
33
11.68
10.92-12.40
250 and over
13.92
13.19-14.49
193,955
2,774
7.5
13.94
13.42-14.51
250,340
1,738
11.9
13.82
13.80-14.45
535,758
845
4.1
12.98
11.59-14.23
14.20
14.14
14.06
13.51
13.32
14.12
13.83
13.78
(2)
13.78
13.45
(2)
13.72
(2)
13.13
13.92
13.37
11.54
(2)
12.54
171,295
5,309
6.6
NOTE. For more detail, see the Board's E.2 (111) statistical release,
A26
1.35
DomesticNonfinancialStatistics • March 1983
INTEREST RATES Money and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1984
1983
Instrument
1981
1982
1984, week ending
1983
Nov.
Dec.
Jan.
Feb.
Feb. 3
Feb. 10
Feb. 17
Feb. 24
Mar. 2
MONEY MARKET RATES
1 Federal funds1'2 3 4
Commercial paper '
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-month7
U.S. Treasury bills4 8
Secondary market
14
3-month
15
6-month
16
1-year
Auction average9
17
3-month
18
6-month
19
16.38
12.26
9.09
9.34
9.47
9.56
9.59
9.41
9.58
9.53
9.60
9.62
15.69
15.32
14.76
11.83
11.89
11.89
8.87
8.88
8.89
9.10
9.10
9.09
9.56
9.53
9.50
9.23
9.20
9.18
9.35
9.32
9.31
9.18
9.15
9.14
9.30
9.25
9.23
9.39
9.35
9.35
9.42
9.41
9.40
9.42
9.43
9.44
15.30
14.08
13.73
11.64
11.23
11.20
8.80
8.70
8.69
9.06
8.87
8.84
9.51
9.16
9.11
9.20
9.08
9.02
9.34
9.14
9.06
9.17
9.05
8.99
9.30
9.08
9.03
9.38
9.12
9.07
9.42
9.22
9.11
9.36
9.18
9.12
15.32
14.66
11.89
11.83
8.90
8.91
9.16
9.13
9.52
9.45
9.23
9.19
9.38
9.35
9.15
9.13
9.31
9.26
9.41
9.38
9.50
9.49
9.51
9.52
15.91
15.91
15.77
16.79
12.04
12.27
12.57
13.12
8.96
9.07
9.27
9.56
9.22
9.36
9.51
9.79
9.67
9.69
9.85
10.08
9.33
9.42
9.56
9.78
9.43
9.54
9.73
9.91
9.25
9.33
9.44
9.68
9.35
9.44
9.62
9.78
9.46
9.57
9.76
9.91
9.54
9.69
9.90
10.06
9.57
9.69
9.95
10.09
14.03
13.80
13.14
10.61
11.07
11.07
8.61
8.73
8.80
8.76
8.93
9.08
9.00
9.17
9.24
8.90
9.02
9.07
9.09
9.18
9.20
8.91
8.97
9.00
9.06
9.10
9.10
9.09
9.21
9.21
9.18
9.32
9.35
9.18
9.33
9.37
14.029
13.776
13.159
10.686
11.084
11.099
8.63
8.75
8.86
8.71
8.89
9.03
8.96
9.14
9.16
8.93
9.06
9.04
9.03
9.13
9.24
8.87
8.97
9.08
9.11
9.04
9.16
9.13
9.28
9.24
9.20
9.33
10.05
10.78
10.24
11.00
11.04
11.55
11.75
11.85
12.02
11.%
10.21
10.94
11 10
11.17
11.67
11.87
11.97
12.12
12.09
11.24
11.75
11.97
12.05
12.21
12.15
CAPITAL MARKET RATES
20
21
??
23
24
25
26
27
28
U.S. Treasury notes and bonds10
Constant maturities"
1-year
2-vear 12
2-V2-year
3-year
5-year
7-year
10-year
20-year
30-year
14.78
14.56
12.27
12.80
9.57
10.21
9.94
10.66
10.11
10.84
9.90
10.64
10.04
10.79
9.81
10.56
14.44
14.24
14.06
13.91
13.72
13.44
12.92
13.01
13.06
13.00
12.92
12.76
10.45
10.80
11.02
11.10
11.34
11.18
10.96
11.41
11.61
11.69
11.92
11.75
11.13
11.54
11.78
11.83
12.02
11.88
10.93
11.37
11.58
11.68
11.82
11.75
11.05
11.54
11.75
11.84
12.00
11.95
10.87
11.31
11.53
11.63
11.79
11.74
9.94
10.67
10 85
10.96
11.43
11.65
11.74
11.90
11.83
29
Composite13
Over 10 years (long-term)
12.87
12.23
10.84
11.32
11.44
11.29
11.44
11.26
11.34
11.44
11.56
11.65
10.43
11.76
11.33
10.88
12.48
11.66
8.80
10.17
9.51
9.01
10.01
9.75
9.34
10.29
9.89
9.00
10.10
9.63
9.04
9.94
9.64
8.80
9.85
9.51
9.00
9.95
9.56
9.15
9.95
9.68
9.20
10.00
9.80
9.30
10.10
9.86
15.06
14.17
14.75
15.29
16.04
14.94
13.79
14.41
15.43
16.11
12.78
12.04
12.42
13.10
13.55
12.93
12.41
12.61
13.09
13.61
13.07
12.57
12.76
13.21
13.75
12.92
12.20
12.71
13.13
13.65
12.88
12.08
12.70
13.11
13.59
12.80
11.97
12.64
13.04
13.54
12.77
11.96
12.58
13.03
13.48
12.84
12.06
12.67
13.08
13.56
12.96
12.22
12.76
13.18
13.70
13.09
12.30
12.96
13.31
13.78
16.63
15.49
12.73
13.14
13.29
12.99
13.05
12.83
12.91
13.02
13.35
13.41
12.36
5.20
12.53
5.81
11.2 P
4.40
11.12
4.31
11.49
4.32
11.35
4.27
11.16
4.59
11.16
4.42
11.25
4.62
11.12
4.62
11.07
4.69
11.19
4.62
State and local notes and bonds
Moody's series14
30
Aaa
31
Baa
32 Bond Buyer series15
33
34
35
36
37
38
Corporate bonds 16
Seasoned issues
All industries
Aaa
Aa
A
Baa
A-rated, recently-offered utility
bond17
MEMO: Dividend/price ratio18
39 Preferred stocks
40 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 1 0
5—
179 days for finance paper.
4. Yields are quoted on a bank-discount basis, rather than an investment yield
basis (which would give a higher figure).
5. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
6. Unweighted average of offered rates quoted by at least five dealers early in
the day.
7. Calendar week average. For indication purposes only.
8. Unweighted average of closing bid rates quoted by at least five dealers.
9. Rates are recorded in the week in which bills are issued. Beginning with the
Treasury bill auction held on Apr. 18, 1983, bidders were required to state the
percentage yield (on a bank discount basis) that they would accept to two decimal
places. Thus, average issuing rates in bill auctions will be reported using two
rather than three decimal places.
10. Yields are based on closing bid prices quoted by at least five dealers.
11. 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.
12. Each biweekly figure is the average of five business days ending on the
Monday following the date indicated. Until Mar. 31, 1983, the biweekly rate
determined the maximum interest rate payable in the following two-week period
on 2-'/2-year small saver certificates. (See table 1.16.)
13. Averages of yields (to maturity or call) for all outstanding bonds neither due
nor callable in less than 10 years, including several very low yielding "flower"
bonds.
14. General obligations only, based on figures for Thursday, from Moody's
Investors Service.
15. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
16. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
17. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations. The Federal Reserve
previously published interest rate series on both newly-issued and recentlyoffered Aaa utility bonds, but discontinued these series in January 1984 owing to
the lack of Aaa issues.
18. Standard and Poor's corporate series. Preferred stock ratio based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
Securities Markets
1.36
STOCK MARKET
A27
Selected Statistics
1983
Indicator
1981
1982
1984
1983
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2 Industrial
3 Transportation
4 Utility
5 Finance
6 Standard & Poor's Corporation (1941-43 = 10)1 . . .
7 American Stock Exchange2
(Aug. 31, 1973 = 100)
74.02
85.44
72.61
38.90
73.52
128.05
68.93
78.18
60.41
39.75
71.99
119.71
92.63
107.45
89.36
47.00
95.34
160.41
96.43
112.52
92.22
46.76
101.22
166.39
96.74
113.21
92.91
46.61
99.60
166.96
93.96
109.50
88.06
46.94
95.76
162.42
96.70
112.76
94.56
48.16
97.00
167.16
96.78
112.87
95.41
48.73
94.79
167.65
95.36
110.77
97.68
48.50
94.48
165.23
94.92
110.60
98.79
47.00
94.25
164.36
96.16
112.16
97.98
47.43
95.79
166.39
90.60
105.44
86.33
45.67
89.95
157.70
171.79
141.31
216.48
237.51
244.03
230.10
234.36
223.76
218.42
221.31
224.83
207.95
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
46,967
5,346
64,617
5,283
85,418
8,215
89,729
10,874
79,508
8,199
74,191
6,329
82,866
6,629
85,445
7,751
86,405
6,160
88,041
6,939
105,518
7,167
96,641
6,431
f
I
1
Customer financing (end-of-period balances, in millions of dollars)
3
Free credit balances at brokers5
14 Margin-account
15 Cash-account
14,411
13,325
14,150
259
2
10 Regulated margin credit at brokers-dealers
11 Margin stock4
12 Convertible bonds
13 Subscription issues
12,980 22,720 17,930 18,870 19,090 19,760 20,690
344
279
361
347
346
363
339
1
1
1
1
1
1
1
3,515
7,150
5,735
8,390
23,000
6,620
8,430
18,292
6,150
8,590
19,218
6,275
8,145
19,437
6,350
8,035
20,124
6,550
7,930
21,030
6,630
7,695
22,075
23,000
23,132
21,790
285
1
22,720
279
1
22,870
261
1
n.a.
6,512
7,599
6,620
8,430
6,660
8,115
1
1
t
Margin-account debt at brokers (percentage distribution, end of period)
16 Total
17
18
19
20
21
22
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
37.0
24.0
17.0
10.0
6.0
6.0
By equity class (in percent)6
Under 40
40-49
50-59
60-69
70-79
80 or more
21.0
24.0
24.0
14.0
9.0
8.0
41.0
22.0
16.0
9.0
6.0
6.0
13.0
21.0
29.0
16.0
12.0
9.0
21.0
28.0
21.0
14.0
9.0
7.0
23.0
28.0
20.0
13.0
9.0
7.0
24.0
27.0
21.0
12.0
9.0
7.0
35.0
24.0
17.0
10.0
7.0
7.0
48.0
22.0
17.0
10.0
7.0
6.0
41.0
22.0
16.0
9.0
6.0
6.0
43.0
21.0
15.0
9.0
6.0
6.0
n.a.
1
1
T
Special miscellaneous-account balances at brokers (end of period)
7
23 Total balances (millions of dollars)
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
35,598
58,329
47,100
50,580
50,267
51,211
54,029
57,490
58,329
62,670
58.0
62.0
63.0
62.0
62.0
62.0
64.0
63.0
63.0
63.0
61.0
31.0
11.0
29.0
9.0
28.0
9.0
33.0
5.0
31.0
6.0
31.0
7.0
29.0
7.0
28.0
9.0
29.0
8.0
28.0
9.0
29.0
10.0
f
I
n.a.
1
I
T
Margin requirements (percent of market value and effective date)8
Mar. 11, 1968
27 Margin stocks
28 Convertible bonds
29 Short sales
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Beginning July 5, 1983, the American Stock Exchange rebased its index
effectively cutting previous readings in half.
3. 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
end-of-month data for member firms of the New York Stock Exhange.
Besides 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.
4. A distribution of this total by equity class is shown on lines 17-22.
5. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
6. Each customer's equity in his collateral (market value of collateral less net
debit balance) is expressed as a percentage of current collateral values.
7. 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.
8. 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.
A28
1.37
DomesticNonfinancialStatistics • March 1983
SELECTED FINANCIAL INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1984
1983
Account
1981
1982
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
748,491'
482,305
100,243
165,943
756,953'
485,366
101,553
170,034
763,365'
489,720
101,386
172,259
771,705
493,432
103,395
174,878
Jan.
Savings and loan associations
1 Assets
2 Mortgages
3 Cash and investment securities'
4 Other
664,167 707,646' 725,309' 730,211'
518,547 483,614 477,022 477,593
63,123 85,438 97,377 99,973
82,497 138,594 150,910 152,645
5 Liabilities and net worth
664,167 707,646 725,309 730,211 729,920 733,074 741,416 746,998 748,491 756,953 763,365
771,705 774,955
6
7
8
9
10
11
525,061 567,861 599,092 603,187 601,731 605,282 610,826 615,369 618,002 622,577 625,013
88,782 97,850 84,850 83,623 82,731 84,342 84,694 84,388 85,976 87,367 89,235
62,794 63,861 56,859 55,933 54,392 54,234 53,579 52,303 52,179 52,678 51,735
25,988 33,989 27,991 27,690 28,339 30,108 31,115 32,085 33,797 34,689 37,500
6,385 9,934 12,255 13,478 14,548 15,998 17,094 17,967 18,812 19,209 19,728
15,544 15,602 14,436 15,853 17,936 15,140 17,527 18,615 15,496 17,458 19,179
634,076 641,762
91,443 86,648
52,626 50,954
38,817 35,369
21,117 21,342
15,275 16,039
Savings capital
Borrowed money
FHLBB
Other
Loans in process2
Other
729,920'
473,481
104,245
152,194
733,074'
474,510
102,063
156,501
741,416'
479,322
102,546
159,548
746,998'
483,178
99,812
164,008
774,955
497,746
102,260
174,949
12 Net worth3
28,395
26,233
26,931
27,548
27,522
28,310
28,369
28,626
29,017
29,551
29,938
30,911
30,831
13 MEMO: Mortgage loan commitments
outstanding4
15,225
18,054
24,922
27,968
30,148
30,691
31,733
32,415
32,483
32,798
34,780
32,996
33,784
175,728 174,197 178,814 178,826 180,071 181,975 182,822 183,612 186,041 188,021 189,146
193,517
5
Mutual savings banks
14 Assets
Loans
Mortgage
Other
Securities
U.S. government6
State and local government
Corporate and other7
Cash
Other assets
99,997 94,091
14,753 16,957
93,823
17,837
93,311
18,353
93,587
17,893
94,000
17,438
93,998
18,134
93,941
17,929
94,831
17,830
95,181
18,860
95,600
19,674
97,368
19,120
9,810
2,288
37,791
5,442
5,649
12,187
2,403
37,827
6,548
8,189
12,364
2,311
38,342
6,039
8,107
13,110
2,260
39,142
5,960
8,118
13,572
2,257
40,206
6,224
8,276
13,931
2,248
40,667
5,322
8,522
14,484
2,247
41,045
5,168
8,799
14,794
2,244
41,889
5,560
8,893
14,774
2,189
41,907
4,940
9,051
15,090
2,194
42,625
4,990
8,973
15,349
2,177
43,589
6,252
9,662
22 Liabilities
175,728 174,197 178,814 178,826 180,071 181,975 182,822 183,612 186,041 188,021 189,146
193,517
23
24
25
26
27
28
29
30
155,110
153,003
49,425
103,578
2,108
10,632
9,986
155,196 161,489 161,262 162,287 163,990 164,848 165,087 165,887 166,260 169,334
152,777 159,088 158,760 159,840 161,573 162,271 162,600 162,998 163,782 166,984
46,862 41,183 40,379 40,467 40,451 39,983 39,360 39,768 38,129 38,448
96,369 86,272 84,593 83,506 84,705 85,445 86,446 85,603 90,639 93,051
2,447
2,417
2,487
2,889
2,350
2,419
2,502
2,577
2,478
2,401
3,114
7,754
7,884
9,475
9,192
7,631
8,988
8,336
7,395
7,596
9,377
9,575
9,235
9,352
9,684
9,932
9,879 12,245 10,314
9,342
172,639
170,105
38,553
95,107
2,534
10,174
18,759
2,418
2,387
15
16
17
18
19
20
21
Deposits 8
Regular
Ordinary savings
Time
Other
Other liabilities
General reserve accounts
MEMO: Mortgage loan commitments
outstanding9
1,293
9,743
2,470
36,161
6,919
7,855
1,285
1,639
1,882
1,860
1,884
1,969
2,046
2,023
2,210
n a.
Life insurance companies
31 Assets
39
40
41
42
Securities
Government
United States10.
State and local .
Foreign"
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
525,803 588,163 602,770 609,298 620,572 628,224 633,569 638,826 644,295 647,149 652,904
25,209
8,167
7,151
9,891
255,769
208,099
47,670
137,747
40,094
48,706
35,815
36,499 38,449 39,210 42,523 43,348 44,751 45,700 46,109 47,767 47,170
16,529 19,213 19,746 20,706 21,141 22,228 22,817 23,134 24,380 24,232
8,664
8,524 10,053 10,355 10,504 10,695 10,739 10,791 10,686
8,368
11,306 10,868 10,940 11,764 11,852 12,019 12,188 12,236 12,596 12,252
287,126 296,233 300,558 309,254 313,510 316,934 318,584 321,568 320,964 325,787
231,406 236,430 238,689 245,833 248,248 252,397 253,977 256,131 256,332 260,432
55,720 59,803 61,869 63,421 65,262 64,537 64,607 65,437 64,632 65,355
141,989 143,031 143,011 143,758 144,725 145,086 146,400 147,356 148,256 148,947
20,264 21,175 21,352 21,344 21,629 21,690 21,749 21,903 22,141 22,278
52,961 53,560 53,715 53,804 53,914 53,972 54,063 54,165 54,255 54,362
48,571 50,322 51,452 48,889 51,098 51,136 52,330 53,194 53,765 54,360
n.a.
n.a.
Credit unions12
43 Total assets/liabilities and capital
44 Federal
45 State
60,611 69,572
39,181 45,483
21,430 24,089
73,876
48,350
22,526
74,896
48,986
25,910
76,851
50,275
26,576
78,467
51,430
27,037
79,084
51,844
27,240
79,595
52,224
27,371
80,678
53,033
27,645
81,033
53,222
27,811
81,845
53,710
28,135
82,854
54,372
28,482
83,182
54,657
28,525
46 Loans outstanding
47 Federal
48 State
49 Savings
50 Federal (shares)
51 State (shares and deposits)
42,333 43,223
27,096 27,941
15,237 15,282
54,152 62,977
35,250 41,341
18,902 21,636
43,067
27,823
15,244
67,494
44,336
23,158
43,530
28,133
15,397
68,663
45,165
23,498
44,055
28,512
15,543
70,221
46,192
24,029
45,001
29,175
15,826
71,712
47,145
24,567
45,616
29,577
16,039
72,438
47,713
24,725
46,880
30,384
16,496
72,550
47,874
24,676
47,744
30,912
16,832
73,697
48,709
24,988
48,345
31,287
17,058
74,187
49,044
25,143
49,102
31,789
17,313
74,685
49,400
25,285
49,923
32,304
17,619
75,435
49,839
25,596
50,306
32,631
17,675
76,068
50,387
25,681
For notes see bottom of opposite page.
Federal Finance
1.37
A29
Continued
1984
1983
Account
1981
1982
Mar.
May
Apr.
June
July
Sept.
Aug.
Oct.
Nov.
Dec.
Jan.
FSLIC-insured federal savings banks
52
53
54
55
Assets
Mortgages
Cash and investment securities'
Other
56 Liabilities and net worth
57
58
59
60
61
62
Savings and capital
Borrowed money ..
FHLBB
Other
Other
Net worth3
59,422
61,717
34,814
9,245
13,437
35,637
9,587
14,198
37,166
9,653
14,898
41,763
46,191
57,496
59,422
61,717
34,108
5,008
3,131
1,877
919
1,728
37,284
5,445
3,572
1,873
1,142
2,320
47,058
6,598
4,192
2,406
1,089
2,751
48,544
6,775
4,323
2,452
1,293
50,384
6,981
4,381
934
1,120
1,181
1,222
1,743
1,774
2,130
2,064
2,230
18,635
22,713
33,667
39,660
41,763
3,353
11,556
3,683
3,396
14,345
4,310
4,058
21,248
5,901
6,518
25,236
6,675
7,749
26,494
6,890
8,379
6,859
18,635
22,713
33,667
39,660
5,877
15,377
27,419
4,146
2,755
1,391
759
1,343
32,446
4,831
3,094
1,737
755
305
793
18,598
2,719
1,979
740
453
943
265
335
650
722
1,113
1,438
610
MEMO
46,191
28,086
791
592
2,160
1,550
63 Loans in process2
64 Mortgage loan committments
outstanding4
1,628
2,600
1,428
2,924
2,810
11. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
12. As of June 1982. data include only federal or federally insured state credit
unions serving natural persons.
1. Holdings of stock of the Federal Home Loan Banks are in "other assets."
2. Beginning in 1982, loans in process are classified as contra-assets and are
not included in total liabilities and net worth. Total assets are net of loans in
process.
3. Includes net undistributed income accrued by most associations.
4. Excludes figures for loans in process, which are shown as a liability.
5. The National Council reports data on member mutual savings banks and on
savings banks that have converted to stock institutions, and to federal savings
banks.
6. Beginning April 1979, includes obligations of U.S. government agencies.
Before that date, this item was included in "Corporate and other."
7. Includes securities of foreign governments and international organizations
and, before April 1979, nonguaranteed issues of U.S. government agencies.
8. Excludes checking, club, and school accounts.
9. Commitments outstanding (including loans in process) of banks in New
York State as reported to the Savings Banks Association of the State of New
York.
10. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
1.38
57,496
7,514
10,591
6,859
NOTE. Savings and loan associations: Estimates by the FHLBB for all
associations in the United States. Data are based on monthly reports of federally
insured associations and annual reports of other associations. Even when revised,
data for current and preceding year are subject to further revision.
Mutual savings banks: Estimates of National Council of Savings Institutions for
all savings banks in the United States.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for
differences between market and book values are not made on each item separately
but are included, in total, in "other assets."
Credit unions: Estimates by the National Credit Union Administration for a
group of federal and federally insured state credit unions serving natural persons.
Figures are preliminary and revised annually to incorporate recent data.
FEDERAL FISCAL A N D FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1981
Fiscal
year
1982
Fiscal
year
1983
1982
HI
1983
H2
HI
1984
1983
Nov.
Dec.
Jan.
U.S. budget
1 Receipts'
2 Outlays'
3 Surplus, or deficit ( - )
4 Trust funds 2 3
5 Federal funds
599,272
657,204
-57,932
6,817
-64,749
617,766
728,375
-110,609
5,456
-116,065
600,562
795,917
-195,355
23,056
-218,410
322,478
348,678
-26,200
-17,690
-43,889
286,338
390,846
-104,508
-6,576
-97,934
306,331
396,477
-90,146
22,680
-112,822
46,200
67,792
-21,592
-3,408
-18,183
58,041
74,702
-16,661
3,921
-20,579
62,537
68,052
-5,515
1,043
-6,558
Off-budget entities (surplus, or deficit (-))
6 Federal4 Financing Bank outlays
7 Other3'
-20,769
-236
-14,142
-3,190
-10,404
-1,953
-7,942
227
-4,923
-2,267
-5,418
-528
-526
-152
-312
400
-121
-129
-78,936
-127,940
-207,711
-33,914
-111,699
-96,094
-22,270
-16,572
-5,762
79,329
134,993
212,425
41,728
119,609
102,538
8,946
15,501
23,686
-1,878
1,485
-11,911
4,858
-9,889
5,176
-408
-7,405
-9,057
1,146
-9,664
3,222
21,277
-7,953
-6,092
7,164
-21,127
3,202
18,670
3,520
15,150
29,164
10,975
18,189
37,057
16,557
20,500
10,999
4,099
6,900
19,773
5,033
14,740
100,243
19,442
72,037
5,213
2,896
2,316
11,817
3,661
8,157
28,544
7,153
21,392
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 (-)) 4
11 Other5
MEMO
12 Treasury operating balance (level, end of
period)
13 Federal Reserve Banks
14 Tax and loan accounts
1. Effective Feb. 8, 1982, supplemental medical insurance premiums and
voluntary hospital insurance premiums, previously included in other insurance
receipts, have been reclassified as offsetting receipts in the health function.
2. Half-year figures are calculated as a residual (total surplus/deficit less trust
fund surplus/deficit).
3. Other off-budget includes Postal Service Fund; Rural Electrification and
Telephone Revolving Fund; Rural Telephone Bank; and petroleum acquisition
and transportation and strategic petroleum reserve effective November 1981.
4. Includes U.S. Treasury operating cash accounts; SDRs; gold tranche
drawing rights; loans to International Monetary Fund; and other cash and
monetary assets.
5. Includes accrued interest payable to the public; allocations of special
drawing rights; deposit funds; miscellaneous liability (including checks outstanding) and asset accounts; seigniorage; increment on gold; net gainAoss for U.S.
currency valuation adjustment; net gain/loss for IMF valuation adjustment; and
profit on the sale of gold.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government." Treasury Bulletin, and the Budget of the United States Government, Fiscal Year 1985.
A30
1.39
DomesticNonfinancialStatistics • March 1983
U.S. BUDGET RECEIPTS A N D OUTLAYS
Millions of dollars
Calendar year
Source or type
Fiscal
year
1981
Fiscal
year
1982
Fiscal
year
1983
1982
1983
HI
H2
HI
1983
Nov.
1984
Dec.
Jan.
RECEIPTS
1 All sources'
599,272
617,766
600,563
322,478
286,338
306,331
46,200
58,041
62,537
285,917
256,332
41
76,844
47,299
297,744
267,513
39
84,691
54,498
288,938
266,010
36
83,586
60,692
150,565
133,575
34
66,174
49,217
145,676
131,567
5
20,040
5,938
144,550
135,531
30
63,014
54,024
22,700
22,550
0
1,011
861
25,577
24,482
0
1,948
854
33,881
21,070
0
12,728
-82
73,733
12,596
65,991
16,784
61,780
24,758
37,836
8,028
25,661
11,467
33,522
13,809
1,827
1,360
11,558
636
2,985
1,366
182,720
201,498
209,001
108,079
94,278
110,521
16,780
16,120
21,462
156,932
172,744
179,010
88,795
85,063
90,912
14,151
15,435
19,446
6,041
15,763
3,984
7,941
16,600
4,212
6,756
18,799
4,436
7,357
9,809
2,119
177
6,857
2,181
6,427
11,146
2,1%
103
2,166
360
0
289
396
478
1,112
427
40,839
8,083
6,787
13,790
36,311
8,854
7,991
16,161
35,300
8,655
6,053
15,594
17,525
4,310
4,208
7,984
16,556
4,299
3,445
7,891
16,904
4,010
2,883
7,751
3,259
904
453
1,637
3,011
855
484
1,072
3,148
776
488
1,163
18 All types'
657,204
728,424
795,917
348,683
390,847
396,477
67,792
74,702
68,052
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology . . .
Energy
Natural resources and environment
Agriculture
159,765
11,130
6,359
10,277
13,525
5,572
187,418
9,982
7,070
4,674
12,934
14,875
210,461
8,927
7,777
4,035
12,676
22,173
93,154
5,183
3,370
2,946
5,636
7,087
100,419
4,406
3,903
2,059
6,940
13,260
105,072
4,705
3,486
2,073
5,892
10,154
17,947
318
777
342
974
766
19,576
2,647
480
534
1,221
1,452
18,283
709
503
255
%3
1,835
Commerce and housing credit
Transportation
Community and regional development . . . .
Education, training, employment, social
services
29 Health1
30 Income security
3,946
23,381
9,394
3,865
20,560
7,165
4,721
21,231
7,302
1,408
9,915
3,055
2,244
10,686
4,186
2,164
9,918
3,124
-288
2,118
686
565
2,030
752
709
1,953
434
31,402
65,982
225,101
26,300
74,017
248,343
25,726
81,157
280,244
12,607
37,219
112,782
12,187
39,073
133,779
12,801
41,206
143,001
2,205
7,064
22,810
2,214
7,149
24,040
2,476
7,175
23,281
31
32
33
34
35
36
22,988
4,696
4,614
6,856
68,726
-16,509
23,955
4,671
4,726
6,393
84,697
-13,270
24,845
5,014
4,991
6,287
89,774
-21,424
10,865
2,334
2,400
3,325
41,883
-6,490
13,241
2,373
2,322
3,152
44,948
-8,333
11,334
2,522
2,434
3,124
42,358
-8,885
2,051
396
535
337
9,464
-710
3,336
448
364
64
8,712
-889
1,202
487
88
1,153
7,808
-1,263
2 Individual income taxes, net
3 Withheld
4 Presidential Election Campaign Fund . . .
5 Nonwithheld
6 Refunds
Corporation income taxes
7 Gross receipts
8 Refunds
9 Social insurance taxes and contributions,
net
10 Payroll employment taxes and
contributions2
11 Self-employment 3
taxes and
contributions
12 Unemployment insurance
13 Other net receipts14
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes 5
Miscellaneous receipts
OUTLAYS
25
26
27
28
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Net interest6
Undistributed offsetting receipts7
1. Effective Feb. 8, 1982, supplemental medical insurance premiums and
voluntary hospital insurance premiums, previously included in other insurance
receipts, have been reclassified as offsetting receipts in the health function.
2. 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. Net interest function includes interest received by trust funds.
7. Consists of rents and royalties on the outer continental shelf and U.S.
government contributions for employee retirement.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government" and the Budget of the U.S. Government, Fiscal Year 1985.
Federal Finance
1.40
A31
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1981
1983
1982
Item
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
1 Federal debt outstanding
1,034.7
1,066.4
1,084.7
1,147.0
1,201.9
1,249.3
1,324.3
1,381.9
1415.3
2 Public debt securities
3 Held by public
4 Held by agencies
1,028.7
825.5
203.2
1,061.3
858.9
202.4
1,079.6
867.9
211.7
1,142.0
925.6
216.4
1,197.1
987.7
209.4
1,244.5
1,043.3
201.2
1,319.6
1,090.3
229.3
1,377.2
1,138.2
239.0
1,410.7
1174.4
236.3
6.0
4.6
1.4
5.1
3.9
1.2
5.0
3.9
1.2
5.0
3.7
1.2
4.8
3.7
1.2
4.8
3.7
1.1
4.7
3.6
1.1
4.7
3.6
1.1
4.6
3.5
1.1
1,029.7
1,062.2
1,080.5
1,142.9
1,197.9
1,245.3
1,320.4
1,378.0
1,411.4
9 Public debt securities
10 Other debt1
1,028.1
1.6
1,060.7
1.5
1,079.0
1.5
1,141.4
1.5
1,196.5
1.4
1,243.9
1.4
1,319.0
1.4
1,376.6
1.3
1,410.1
1.3
11 MEMO: Statutory debt limit
1,079.8
1,079.8
1,143.1
1,143.1
1,290.2
1,290.2
1,389.0
1,389.0
1,490.0
5 Agency securities
6 Held by public
7 Held by agencies
8 Debt subject to statutory limit
1. Includes guaranteed debt of government agencies, specified participation
certificates, notes to international lending organizations, and District of Columbia
stadium bonds.
1.41
GROSS PUBLIC DEBT OF U.S. TREASURY
NOTE. Data from Treasury Bulletin (U.S. Treasury Department),
Types and Ownership
Billions of dollars, end of period
1983
Type and holder
1979
1980
1981
1984
1982
Oct.
2
3
4
5
6
7
8
9
10
11
12
13
14
15 Non-interest-bearing debt
By holder5
16 U.S. government agencies and trust funds
17 Federal Reserve Banks
18 Private investors
19 Commercial banks
20 Mutual savings banks
21 Insurance companies
22 Other companies
23 State and local governments
24
25
26
27
Individuals
Savings bonds
Other securities
Foreign and international6
Other miscellaneous investors7
1,197.1
1,384.6
1,389.2
1,410.7
1,437.4
1,457.5
1,027.3
720.3
245.0
375.3
99.9
307.0
1,195.5
881.5
311.8
465.0
104.6
314.0
1,383.3
1,035.3
339.0
566.2
129.2
347.9
1,387.9
1,044.3
335.3
575.3
133.8
343.5
1,400.9
1,050.9
343.8
573.4
633.7
350.0
1,435.6
1,081.9
346.9
597.6
137.4
353.7
1,455.8
35.7
10.5
10.5
36.7
37.5
9.8
9.8
71.0
235.0
71.2
237.0
1.8
1.8
844.0
530.7
172.6
283.4
74.7
313.2
928.9
623.2
24.6
23.6
5.3
79.9
177.5
23.8
24.0
17.6
6.4
72.5
185.1
23.0
19.0
14.9
4.1
35.3
11.5
11.5
68.1
25.7
14.7
13.0
1.7
68.0
196.7
205.4
70.6
230.3
226.2
36.1
10.4
10.4
0
70.7
231.9
1.2
1.3
1.4
1.6
1.3
1.3
9.8
187.1
117.5
540.5
96.4
4.7
16.7
22.9
69.9
192.5
121.3
616.4
209.4
139.3
848.4
131.4
n.a.
38.7
n.a.
113.4
234.6
146.1
230.4
149.4
5.4
20.1
25.7
78.8
203.3
131.0
694.5
109.4
5.2
19.1
37.8
85.6
236.3
151.9
1022.6
188.9
n.a.
48.9
n.a.
79.9
36.2
124.4
90.1
72.5
56.7
127.7
106.9
68.0
75.6
141.4
152.3
68.3
48.2
149.4
233.2
2.2
28.8
216.1
321.6
85.4
305.7
116.0
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.
Feb.
1,028.7
1 Total gross public debt
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
Jan.
.0
.0
70.9
10.8
10.8
.0
1,100.1
349.5
608.0
142.6
355.7
.0
71.5
61.9
168.9
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.
A32
1.42
DomesticNonfinancialStatistics • March 1983
U.S. GOVERNMENT SECURITIES DEALERS
Transactions
Par value; averages of daily figures, in millions of dollars
1983
Item
1980
1981
1984
1983 and 1984, week ending Wednesday
1982
Dec/
Jan.
Feb.
Jan. 4
Dec. 28
Jan. 11
Jan. 18
Jan. 25
Feb. 1
1
Immediate delivery1
U.S. government securities
18,331
24,728
32,271
42,361
45,659
52,384
46,296
50,729
47,025
49,132
38,671
44,676
2
3
4
5
6
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
11,413
421
3,330
1,464
1,704
14,768
621
4,360
2,451
2,528
18,398
810
6,272
3,557
3,234
23,494
932
7,941
5,134
4,861
23,162
1,119
9,629
5,647
6,102
24,926
902
11,808
8,024
6,725
24,951
812
12,536
4,679
3,320
26,128
1,137
9,406
7,034
7,024
23,137
993
9,505
5,944
7,446
24,571
1,467
10,280
6,055
6,760
20,455
865
7,593
5,118
4,641
22,023
1,080
11,476
5,052
5,046
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
7
8
9
10
11
12
13
14
15
16
17
18
1,484
1,640
1,769
2,429
2,751
4,119
2,862
2,957
2,679
3,116
2,386
2,876
7,610
9,237
3,258
2,472
11,750
11,337
3,306
4,477
1,807
6,128
15,659
15,344
4,142
5,001
2,502
7,595
19,146
20,786
5,925
4,431
2,370
7,964
21,090
21,817
6,538
4,886
3,119
8,891
24,951
23,314
7,574
5,374
2,702
8,114
18,900
24,535
4,797
4,187
2,010
8,520
21,229
26,544
6,493
4,844
2,636
11,083
21,978
22,368
6,195
5,622
3,353
9,870
23,170
22,846
7,773
5,272
3,496
8,266
17,992
18,293
6,174
3,765
2,595
7,333
20,055
21,745
6,565
4,338
2,937
8,397
3,523
1,330
234
5,031
1,490
259
6,449
2,552
194
5,431
2,625
157
6,936
3,581
302
5,794
1,399
142
4,336
2,116
293
5,994
2,589
207
6,782
3,412
240
4,784
2,491
159
4,031
1,964
140
365
1,370
835
982
1,175
1,857
713
2,140
1,620
2,596
2,021
1,193
833
2,095
432
2,247
988
2,607
772
1,584
842
1,939
n.a.
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
1.43
U.S. GOVERNMENT SECURITIES DEALERS
from the date of the transaction for government securities (Treasury bills, notes,
and bonds) or after 30 days for mortgage-backed agency issues.
NOTE. Averages for transactions are based on number of trading days in the
period.
Transactions are market purchases and sales of U.S. government securities
dealers reporting to the Federal Reserve Bank of 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
1984
1983
Item
1980
1981
1983 and 1984, week ending Wednesday
1982
Dec/
Jan.
Feb.
Dec. 21
Dec. 28
Jan. 4
Jan. 11
Jan. 18
Positions
1
2
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
Futures positions
Treasury bills
Treasury coupons
Federal agency securities..
Forward positions
U.S. government securities
Federal agency securities..
n.a.
9,033
6,485
-1,526
1,488
292
2,294
2,277
3,435
1,746
2,658
9,328
4,837
-199
2,932
-341
2,001
3,712
5,531
2,832
3,317
-2,336
-1,437
47
712
-745
-912
11,480
7,449
4,178
3,822
3,130
2,730
-158
1,552
-705
-288
11,236
6,528
3,494
2,754
1,161
3,101
-227
-428
-1,610
324
12,391
7,322
3,244
2,771
-6,840
-3,461
-112
-909
-1,527
-831
12,006
6,782
4,032
3,940
-2,663
-2,182
-174
2,322
-1,481
-1,149
11,787
6,682
3,875
4,011
-2,065
-4,052
-376
2,450
621
-709
11,610
7,091
3,397
3,746
69
-726
-276
1,824
-63
-690
11,192
6,263
3,534
3,066
4,060
2,869
22
1,611
-506
64
11,773
6,588
4,061
2,900
-8,934
-2,733
522
-2,508
-2,361
-224
-2,926
1,016
386
-10,286
758
38
-7,788
1,252
-174
-21
1,423
384
-5,000
1,822
426
-6,512
1,386
397
-9,676
1,121
228
-10,106
554
10
-603
-451
4,306
4,103
-1,062
434
166
665
797
3,115
-788
-1,190
-2,971
-7,738
-1,454
-7,506
-2,257
-8,021
-3,623
-7,863
-764
-7,795
-1,039
-7,814
-1,190
-7,648
-1,595
-8,033
36,151
66,290
37,931
65,542
41,514
60,119
35,267
60,504
37,467
60,245
65,393
52,841
62,703
53,818
71,743
48,197
68,129
49,321
67,326
52,197
Financing2
Reverse repurchase agreements3
Overnight and continuing
Term agreements
Repurchase agreements4
18 Overnight and continuing
19 Term agreements
16
17
For notes see opposite page.
1
n.a.
1
t
14,568
32,048
26,754
48,247
36,710
65,578
37,309
60,280
35,919
29,449
49,695
43,410
65,095
53,560
67,685
51,123
1
T
n.a.
1
T
Federal Finance
1.44
FEDERAL A N D FEDERALLY SPONSORED CREDIT AGENCIES
A33
Debt Outstanding
Millions of dollars, end of period
1984
1983
Agency
1980
1981
1982
Aug.
1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department1
4 Export-Import Bank2'3
5 Federal Housing Administration4
6 Government National Mortgage Association
participation certificates5
7 Postal Service6
8 Tennessee Valley Authority
9 United States Railway Association6
10 Federally sponsored agencies7
11 Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association
14 Farm Credit Banks
15 Student Loan Marketing Association
Sept.
Oct.
Nov.
Dec.
Jan.
239,872
188,665
221,946
237,085
236,931
236,610
239,121
240,177
239,716
28,606
610
11,250
477
31,806
484
13,339
413
33,055
354
14,218
288
33,420
274
14,564
213
33,744
264
14,740
206
33,735
258
14,740
203
33,813
253
14,740
197
33,940
243
14,853
194
33,919
234
14,852
173
2,817
1,770
11,190
492
2,715
1,538
13,115
202
2,165
1,471
14,365
194
2,165
1,404
14,675
125
2,165
1,404
14,840
125
2,165
1,404
14,840
125
2,165
1,404
14,945
109
2,165
1,404
14,970
111
2,165
1,404
14,980
111
160,059
37,268
4,686
55,182
62,923
(8)
190,140
54,131
5,480
58,749
71,359
421
204,030
55,967
4,524
70,052
71,896
1,591
203,511
49,081
5,875
72,163
73,744
2,648
202,866
49,283
6,134
71,258
73,046
3,145
205,386
49,956
6,950
71,965
73,465
3,050
206,364
49,285
7,024
73,531
73,474
3,050
205,776
48,930
6,793
74,594
72,409
3,050
205,953
48,344
6,679
74,676
73,023
3,231
87,460
110,698
126,424
134,505
136,081
134,799
135,361
135,791
135,940
10,654
1,520
2,720
9,465
492
12,741
1,288
5,400
11,390
202
14,177
1,221
5,000
12,640
194
14,493
1,154
5,000
12,950
125
14,676
1,154
5,000
13,115
125
14,676
1,154
5,000
13,175
125
14,676
1,154
5,000
13,220
109
14,789
1,154
5,000
13,245
111
14,789
1,154
5,000
13,255
111
39,431
9,196
11,262
48,821
13,516
12,740
53,261
17,157
22,774
56,386
18,638
25,759
55,691
18,936
27,384
55,916
19,093
25,660
55,916
19,216
26,070
55,266
19,766
26,460
54,776
19,927
26,928
MEMO
16 Federal Financing Bank debt
Lending to federal and federally sponsored
17
18
19
20
21
Export-Import6 Bank3
Postal Service
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association6
Other Lending10
22 Farmers Home Administration
23 Rural Electrification Administration
24 Other
1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1,1976.
3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing
and Urban Development; Small Business Administration; and the Veterans
Administration.
6. Off-budget.
NOTES TO TABLE 1.43
1. Immediate positions are net amounts (in terms of par values) of securities
owned by nonbank dealer firms and dealer departments of commercial banks on a
commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase (RPs). The maturities of some
repurchase agreements are sufficiently long, however, to suggest that the securities involved are not available for trading purposes. 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.
7. Includes outstanding noncontingent liabilities: Notes, bonds, and debentures.
8. Before late 1981, the Association obtained financing through the Federal
Financing Bank.
9. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB
incurs debt solely for the purpose of lending to other agencies, its debt is not
included in the main portion of the table in order to avoid double counting.
10. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any
particular agency being generally small. The Farmers Home Administration item
consists exclusively of agency assets, while the Rural Electrification Administration entry contains both agency assets and guaranteed loans.
3. Includes all reverse repurchase agreements, including those that have been
arranged to make delivery on short sales and those for which the securities
obtained have been used as collateral on borrowings, that is, matched agreements.
4. Includes both repurchase agreements undertaken to finance positions and
"matched book" repurchase agreements.
NOTE. Data for positions are averages of daily figures, in terms of par value,
based on the number of trading days in the period. Positions are shown net and are
on a commitment basis. Data for financing are based on Wednesday figures, in
terms of actual money borrowed or lent.
A34
1.45
DomesticNonfinancialStatistics • March 1983
NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
1983
Type of issue or issuer,
or use
1980
1981
1982
May
1
1 AU issues, new and refunding
June'
July
Aug.'
r
Sept.'
Oct.'
Nov.'
Dec.
48,367
47,732
78,950
9,583
7,555
4,370
6,194
6,160
6,650
5,829
8,854
14,100
38
34,267
57
12,394
34
35,338
55
21,088
225
57,862
461
3,571
6
6,012
14
1,550
7
6,005
16
860r
7
3,510'
26
1,614
9
4,580
29
1,266
14
4,894
35
1,935
15
4,715
39
1,679
15
4,150
39
1,134
15
7,720
39
Type of issuer
6 State
7 Special district and statutory authority
8 Municipalities, counties, townships, school districts
5,304
26,972
16,090
5,288
27,499
14,945
8,406
45,000
25,544
830
4,478
4,275
277
4,260
3,018
484
3,009
877'
673
3,357
2,164
452
4,199
1,509
856
4,387
1,407
405
3,318
2,106
198
5,790
2,866
9 Issues for new capital, total
46,736
46,530
74,613
6,989
6,049
3,884'
4,612
5,512
5,187
5,333
8,438
4,572
2,621
8,149
19,958
3,974
7,462
4,547
3,447
10,037
12,729
7,651
8,119
6,444
6,256
14,254
26,605
8,256
12,797
828
419
1,513
2,069
708
1,452
887
229
939
2,120
669
1,205
535
274
268
1,920
393'
494 r
714
261
285
2,139
254
959
527
195
1,238
2,334
494
724
457
250
605
2,580
323
972
515
336
1,101
2,080
516
785
744
421
1,230
2,676
2,317
1,050
2
3
4
5
Type of issue
General obligation
U.S. government loans2
Revenue
U.S. government loans2
Use of proceeds
10 Education
11 Transportation
12 Utilities and conservation
13 Social welfare
14 Industrial aid
15 Other purposes
1. Par amounts of long-term issues based on date of sale.
2. Consists of tax-exempt issues guaranteed by the Farmers Home Administration.
1.46
SOURCE. Public Securities Association.
NEW SECURITY ISSUES of Corporations
Millions of dollars
Type of issue or issuer,
or use
1983
1981
1982
1983
June
May
2
July
Aug.
Sept.
Oct.
Nov.
Dec.
1 All issues'<
70,441
84,198
98,845
11,489
8,165
6,474
5,941
6,568
6,592
8,103
6,812
2 Bonds
45,092
53,636
47,266
7,017
2,244
2,550
2,547
2,865
3,055
4,075
3,173
Type of offering
3 Public
4 Private placement
38,103
6,989
43,838
9,798
47,266
n.a.
7,017
n.a.
2,244
n.a.
2,550
n.a.
2,547
n.a.
2,865
n.a.
3,055
n.a.
4,075
n.a.
3,173
n.a.
12,325
5,229
2,052
8,963
4,280
12,243
13,123
5,681
1,474
12,155
2,265
18,938
8,133
5,374
1,086
7,066
3,380
22,227
2,158
1,055
150
1,115
505
2,034
706
425
115
363
250
385
60
228
148
322
1,100
692
200
458
0
355
0
1,534
282
353
0
590
100
1,540
367
114
0
510
50
2,014
22
23
111
910
0
3,009
423
201
105
120
0
2,324
11 Stocks3
25,349
30,562
51,579
4,472
5,921
3,924
3,394
3,703
3,842
4,028
3,639
Type
12 Preferred
13 Common
1,797
23,552
5,113
25,449
7,213
44,366
492
3,980
665
5,256
290
3,634
247
3,147
644
3,059
300
3,542
433
3,595
253
3,386
5,074
7,557
779
5,577
1,778
4,584
5,649
7,770
709
7,517
2,227
6,690
14,135
13,112
2,729
5,001
1,822
14,780
1,545
922
221
264
8
1,512
2,449
1,358
109
550
138
1,317
1,015
1,415
337
72
20
1,065
1,309
743
145
263
236
698
962
997
165
200
0
1,379
744
868
305
588
36
1,301
458
1,598
192
622
13
1,145
649
852
413
245
12
1,468
5
6
7
8
9
10
14
15
16
17
18
19
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures, which represent gross proceeds of issues maturing in more than one
year, sold for cash in the United States, are principal amount or number of units
multiplied by offering price. Excludes offerings of less than $100,000, secondary
offerings, undefined or exempted issues as defined in the Securities Act of 1933,
employee stock plans, investment companies other than closed-end, intracorporate transactions, and sales to foreigners.
2. Data for 1983 include only public offerings.
3. Beginning in August 1981, gross stock offerings include new equity volume
from swaps of debt for equity.
SOURCE. Securities and Exchange Commission and the Board of Governors of
the Federal Reserve System.
Corporate Finance
1.47
OPEN-END INVESTMENT COMPANIES
A35
Net Sales and Asset Position
Millions of dollars
1984
1983
Item
1982
1983r
June
July
Sept.
Aug.
Oct.
Nov.
Dec/
Jan.
INVESTMENT COMPANIES'
1 Sales of own shares2
2 Redemptions of own shares3
3 Net sales
45,675
30,078
15,597
84,793
57,120
27,673
8,107
5,416
2,691
6,944
4,500
2,444
6,032
4,885
1,147
5,915
4,412
1,503
6,532
4,264
2,268
6,341
3,920
2,421
6,846
5,946
900
10,319
5,544
4,775
4 Assets4
5
Cash position3
6
Other
76,841
6,040
70,801
113,599
8,343
105,256
106,449
9,110
97,339
104,279
8,815
95,464
104,494
8,045
93,449
109,455
8,868
100,587
107,314
8,256
99,058
113,052
9,395
103,657
113,599
8,343
105,256
114,839
9,180
105,659
5. Also includes all U.S. government securities and other short-term debt
securities.
1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment of capital gains distributions and share issue of conversions from one fund to
another in the same group.
3. Excludes share redemption resulting from conversions from one fund to
another in the same group.
4. Market value at end of period, less current liabilities.
1.48
NOTE. Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the
Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
CORPORATE PROFITS A N D THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1981
Account
1980
1981
1982
1983
1982
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
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
175.4
234.6
84.8
149.8
58.6
91.2
192.3
227.0
82.8
144.1
64.7
79.4
164.8
174.2
59.1
115.1
68.7
46.4
192.0
217.2
75.6
141.7
67.3
74.4
162.0
173.2
60.3
112.9
67.7
45.2
166.8
178.8
61.4
117.4
67.8
49.5
168.5
177.3
60.8
116.5
68.8
47.7
161.9
167.5
54.0
113.5
70.4
43.1
181.8
169.7
61.5
108.2
71.4
36.7
218.2
203.3
76.0
127.2
72.0
55.2
248.4
229.1
84.9
144.1
73.7
70.4
7 Inventory valuation
8 Capital consumption adjustment
-42.9
-16.3
-23.6
-11.0
-8.3
-1.1
-15.7
-9.5
-5.5
-5.6
-8.5
-3.5
-9.0
.1
-10.3
4.7
-1.7
13.9
-10.6
25.6
-18.3
37.6
SOURCE. Survey of Current Business (Department of Commerce).
A36
1.49
DomesticNonfinancialStatistics • March 1983
NONFINANCIAL CORPORATIONS
Current Assets and Liabilities
Billions of dollars, except for ratio
1982
Account
1977
1978
1979
1980
1983
1981
Q3
Q4
Q1
Q2
Q3
1 Current assets
912.7
1,043.7
1,214.8
1,327.0
1,419.3
1,441.8
1,425.4
1,436.5
1,464.2
1,522.4
2
3
4
5
6
97.2
18.2
330.3
376.9
90.1
105.5
17.2
388.0
431.8
101.1
118.0
16.7
459.0
505.1
116.0
126.9
18.7
506.8
542.8
131.8
131.8
17.4
530.3
585.1
154.6
126.9
18.9
534.2
596.5
165.3
144.0
22.4
511.0
575.2
172.6
139.7
25.8
517.9
573.2
179.9
145.7
27.5
534.3
570.5
186.2
148.4
26.3
562.7
591.1
193.8
7 Current liabilities
557.1
669.5
807.3
889.3
976.3
1,007.6
977.8
986.3
997.7
1,038.6
8 Notes and accounts payable
9 Other
317.6
239.6
383.0
286.5
460.8
346.5
513.6
375.7
558.8
417.5
562.7
444.9
552.8
425.0
543.2
443.1
551.6
446.1
578.8
459.9
10 Net working capital
355.5
374.3
407.5
437.8
442.9
434.2
447.6
450.2
466.5
483.7
11 MEMO: Current ratio'
1.638
1.559
1.505
1.492
1.454
1.431
1.458
1.456
1.468
1.466
Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other
1. Ratio of total current assets to total current liabilities.
All data in this table reflect the most current benchmarks. Complete data are
available upon request from the Flow of Funds Section, Division of Research and
Statistics, Board of Governors of the Federal Reserve System, Washington, D.C.
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 the July 1978 BULLETIN, pp. 533-37.
20551.
SOURCE. Federal Trade Commission and Bureau of the Census.
1.50
TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1982
Industry1
1982
1983
1983
1984
19841
Q3'
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5 Railroad
6 Air
7 Other
Public utilities
8 Electric
9 Gas and other
10 Trade and services
11 Communication and other2
Ql
Q2
Q3
Q4
Ql1
Q21
316.43
302.50
343.57
313.76
303.18
293.03
293.46
304.70
318.83
332.66
335.40
56.44
63.23
51.78
59.75
62.78
66.93
56.61
61.65
50.51
59.72
50.74
59.12
48.48
60.31
53.06
58.06
54.85
61.50
59.21
65.49
59.01
67.25
15.45
11.83
14.34
14.57
13.41
12.03
10.91
11.93
12.43
13.57
13.87
4.38
3.93
3.64
3.92
3.77
3.50
4.73
2.78
4.49
4.01
4.07
3.21
4.35
4.76
3.22
3.35
4.09
3.60
3.64
4.10
3.14
4.07
3.57
3.36
4.63
3.32
3.91
4.09
2.42
4.57
4.85
2.82
4.31
33.40
8.55
86.95
40.46
34.99
7.00
87.94
38.02
35.54
9.24
100.25
42.47
34.73
8.29
86.88
39.75
35.15
7.85
84.36
39.84
33.97
7.64
82.38
36.11
34.86
6.62
85.85
35.54
35.84
6.38
91.06
37.38
35.31
7.37
92.44
43.05
35.51
8.21
98.56
41.03
35.72
8.95
97.93
40.68
1. Anticipated by business.
2. "Other" consists of construction; social services and membership organizations; and forestry, fisheries, and agricultural services.
Q4
SOURCE. Survey of Current Business (Department of Commerce).
Corporate Finance
1.51
DOMESTIC FINANCE COMPANIES
A37
A s s e t s and Liabilities
Billions of dollars, e n d of period
1983
Account
1977
1978
1979
1980
1981
1982
Q2
QL
Q3
Q4
ASSETS
Accounts receivable, gross
Consumer
Business
Total
LESS: Reserves for unearned income and losses....
Accounts receivable, net
Cash and bank deposits
Securities
All other
52.6
63.3
116.0
15.6
100.4
3.5 1
1.3 Y
17.3 J
65.7
70.3
136.0
20.0
116.0
73.6
72.3
145.9
23.3
122.6
85.5
80.6
166.1
28.9
137.2
89.5
81.0
170.4
30.5
139.8
89.9
82.2
172.1
29.7
142.4
91.3
84.9
176.2
30.4
145.8
92.3
86.8
179.0
30.1
148.9
92.8
95.2
188.0
30.6
157.4
24.9 1
27.5
34.2
39.7
42.8
44.3
45.0
45.3
104.3
122.4
140.9
150.1
171.4
179.5
185.2
190.2
193.9
202.7
10 Bank loans
11 Commercial paper
5.9
29.6
6.5
34.5
8.5
43.3
13.2
43.4
15.4
51.2
18.6
45.8
16.6
45.2
16.3
49.0
17.0
49.7
19.1
53.6
Debt
Short-term, n.e.c
12
13
Long-term, n.e.c
14
Other
6.2
36.0
11.5
8.1
43.6
12.6
8.2
46.7
14.2
7.5
52.4
14.3
9.6
54.8
17.8
8.7
63.5
18.7
9.8
64.7
22.8
9.6
64.5
24.0
8.7
66.2
24.4
11.3
65.4
27.1
1
2
4
5
6
7
8
9 Total assets
44.0
55.2
99.2
12.7
86.5
2.6
.9
14.3
LIABILITIES
15 Capital, surplus, and undivided profits
15.1
17.2
19.9
19.4
22.8
24.2
26.0
26.7
27.9
26.2
104.3
16 Total liabilities and capital
122.4
140.9
150.1
171.4
179.5
185.2
190.2
193.9
202.7
1. Beginning Q1 1979, asset items on lines 6, 7, and 8 are combined.
NOTE. Components may not add to totals due to rounding.
1.52
DOMESTIC FINANCE COMPANIES
B u s i n e s s Credit
Millions of dollars, seasonally a d j u s t e d e x c e p t as noted
Changes in accounts
receivable
Type
Extensions
Repayments
1983
1983
1983
Accounts
receivable
outstanding
Dec. 31,
1983'
Oct.
Nov.
Dec.
Oct.
Nov.
Dec.
Oct.
Nov.
Dec.
1 Total
95,218
986
1,793
2,721
25,841
29,988
27,338
24,855
28,195
24,617
2
3
4
5
21,267
15,038
28,797
680
310
-406
1,320
662
-198
485
583
602
1,925
7,124
1,049
2,592
8,516
1,504
1,836
7,690
1,610
1,245
6,814
1,455
1,272
7,854
1,702
1,351
7,107
1,008
10,332
19,784
149
253
17
-8
121
930
13,822
1,921
15,344
2,032
13,441
2,761
13,673
1,668
15,327
2,040
13,320
1,831
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.
A38
1.53
DomesticNonfinancialStatistics • March 1983
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1983
Item
1981
1982
1984
1983
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
Conventional mortgages on new homes
Terms'
1 Purchase price (thousands of dollars)
2 Amount of loan (thousands of dollars)
3 Loan/price ratio (percent)
4 Maturity (years)
5 Fees and charges (percent of loan amount)2
6 Contract rate (percent per annum)
90.4
65.3
74.8
27.7
2.67
14.16
94.6
69.8
76.6
27.6
2.95
14.47
92.6
69.4
77.0
26.7
2.40
12.20
97.3
72.3
76.5
28.1
2.54
12.02
94.4
67.3
73.3
25.7
1.96
12.01
100.7
76.5
78.5
27.2
2.45
12.08
95.8
72.5
78.4
26.9
2.33
11.80
98.0
76.7
80.5
26.5
2.54
11.82
94.8
73.3
79.1
27.3
2.56
11.94
93.0
71.8
79.2
27.7
2.55
11.82
Yield (percent per annum)
7 FHLBB series5
8 HUD series4
14.74
16.52
15.12
15.79
12.66
13.43
12.50
14.00
12.38
13.90
12.54
13.60
12.25
13.52
12.34
13.48
12.42
13.41
12.30
13.28
16.31
15.29
15.31
14.68
13.11
12.26
14.23
12.54
13.78
13.01
13.55
12.73
13.23
12.42
13.23
12.51
13.25
12.49
13.08
12.35
SECONDARY MARKETS
Yield (percent per annum)
9 FHA mortgages (HUD series)5
10 GNMA securities6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional
58,675
39,341
19,334
66,031
39,718
26,312
74,847
37,393
37,454
74,630
37,092
37,583
75,057
36,894
38,163
75,174
36,670
38,505
75,665
36,455
39,210
76,714
36,349
40,365
78,256
36,211
42,045
79,049
40,873
38,177
Mortgage transactions (during period)
14 Purchases
15 Sales
6,112
2
15,116
2
17,554
3,528
1,358
786
1,213
121
1,203
464
1,244
257
1,348
0
2,204
250
1,285
20
Mortgage commitments1
16 Contracted (during period)
17 Outstanding (end of period)
9,331
3,717
22,105
7,606
18,607
5,461
1,198
5,099
1,282
5,165
2,739
6,684
1,882
7,182
997
6,493
1,471
5,461
1,772
5,470
Mortgage holdings (end of period)8
18 Total
19 FHA/VA
20 Conventional
5,245
2,236
3,010
5,153
1,921
3,224
6,182
971
5,211
6,149
964
5,185
6,857
961
5,896
6,963
947
6,016
7,093
940
6,153
7,633'
941'
6,691'
Mortgage transactions (during period)
21 Purchases
22 Sales
3,789
3,531
23,671
24,164
1,523
1,491
1,621
1,588
2,263
1,556
2,886
2,750
1,287
1,143
1,685'
1,115'
6,974
3,518
28,187
7,549
4,671
10,794
6,367
15,519
3,283
16,512
2,598
16,198
2,093
16,994
1,704'
16,964'
FEDERAL HOME LOAN MORTGAGE CORPORATION
n.a.
n a.
9
Mortgage commitments
23 Contracted (during period)
24 Outstanding (end of period)
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Home Loan Bank
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages; from Department of Housing and Urban Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal Housing
Administration-insured first mortgages for immediate delivery in the private
secondary market. Any gaps in data are due to periods of adjustment to changes in
maximum permissible contract rates.
6. Average net yields to investors on Government National Mortgage Association guaranteed, mortgage-backed, fully modified pass-through securities, assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying the
prevailing ceiling rate. Monthly figures are unweighted averages of Monday
quotations for the month.
7. Includes some multifamily and nonprofit hospital loan commitments in
addition to 1- to 4-family loan commitments accepted in FNMA's free market
auction system, and through the FNMA-GNMA tandem plans.
8. Includes participation as well as whole loans.
9. Includes conventional and government-underwritten loans. FHLMC's mortgage commitments and mortgage transactions include activity under mortgage/
securities swap programs, while the corresponding data for FNMA exclude swap
activity.
Real Estate Debt
1.54
A39
MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
1982
Type of holder, and type of property
1982
1981
1983
1983
Q4
1
2
3
4
5
All holders
1- to 4-family
Multifamily
Commercial
Farm
6 Major financial institutions
7 Commercial banks'
8
1- to 4-family
9
Multifamily
Commercial
10
Farm
11
Ql
Q2
Q3
Q4
1,583,264
1,065,294
136,354
279,889
101,727
1,653,633
1,104,634
140,431
301,862
106,706
1,821,901'
l,213,632r
150,783'
347,926'
109,560'
1,653,633
1,104,634
140,431
301,862
106,706
1,680,296'
1,121,035'
141,390'
310,959'
106,912'
1,721,676'
1,145,830'
144,615'
323,263'
107,968'
1,773,625'
1,181,175'
146,924'
336,514'
109,012'
1,821,901'
1,213,632'
150,783'
347,926'
109,56C
1,040,827
284,536
170,013
15,132
91,026
8,365
1,022,161
300,203
173,157
16,421
102,219
8,406
1,106,119
329,745
182,679
17,971
119,862
9,233
1,022,161
300,203
173,157
16,421
102,219
8,406
1,027,468'
303,371'
172,346'
16,230'
106,301'
8,494'
1,047,312'
310,217'
174,032'
16,876'
110,437'
8,872'
1,078,113'
320,299'
178,054'
17,424'
115,692'
9,129'
1,106,119
329,745
182,679
17,971
119,862
9,233
99,997
68,187
15,960
15,810
40
97,805
66,777
15,305
15,694
29
133,325
95,249
17,964
20,083
29
97,805
66,777
15,305
15,694
29
105,378
73,240
15,587
16,522
29
119,236
84,349
16,667
18,192
28
129,645
92,467
17,588
19,562
28
133,325
95,249
17,964
20,083
29
12
13
14
15
16
Mutual savings banks
1- to 4-family
Multifamily
Commercial
Farm
17
18
19
20
Savings and loan associations
1- to 4-family
Multifamily
Commercial
518,547
433,142
37,699
47,706
482,234
392,201
38,868
51,165
492,857
389,357
42,386
61,114
482,234
392,201
38,868
51,165
475,688
383,642
39,149
52,897
473,134
376,851
39,838
56,445
480,813
380,563
41,206
59,044
492,857
389,357
42,386
61,114
21
22
23
24
25
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
137,747
17,201
19,283
88,163
13,100
141,919
16,743
18,847
93,501
12,828
150,192
15,503
19,201
102,738
12,750
141,919
16,743
18,847
93,501
12,828
143,031
16,388
18,825
95,158
12,660
144,725
15,860
18,778
97,416
12,671
147,356
15,534
18,857
100,209
12,756
150,192
15,503
19,201
102,738
12,750
126,094
4,765
693
4,072
138,185
4,227
676
3,551
146,951'
3,395r
630'
2,765'
138,185
4,227
676
3,551
140,028
3,753
665
3,088
142,094
3,643
651
2,992
142,224
3,475
639
2,836
146,951'
3,395'
63C
2,765'
26 Federal and related agencies
27 Government National Mortgage Association
28
1- to 4-family
29
Multifamily
30
31
32
33
34
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
2,235
914
473
506
342
1,786
783
218
377
408
2,141'
1,159'
173'
409'
400'
1,786
783
218
377
408
2,077
707
380
337
653
1,605
381
555
248
421
600
211
32
113
244
2,141'
1,159'
173'
409'
40C
35
36
37
Federal Housing and Veterans
Administration
1- to 4-family
Multifamily
5,999
2,289
3,710
5,228
1,980
3,248
4,792'
1,863'
2,929'
5,228
1,980
3,248
5,138
1,867
3,271
5,084
1,911
3,173
5,050
2,061
2,989
4,792'
1,863'
2,929'
38
39
40
Federal National Mortgage Association
1- to 4-family
Multifamily
61,412
55,986
5,426
71,814
66,500
5,314
78,256'
73,045'
5,211'
71,814
66,500
5,314
73,666
68,370
5,296
74,669
69,396
5,273
75,174
69,938
5,236
78,256'
73,045'
5,211'
41
42
43
Federal Land Banks
1- to 4-family
Farm
46,446
2,788
43,658
50,350
3,068
47,282
51,154
3,007
48,147
50,350
3,068
47,282
50,544
3,059
47,485
50,858
3,030
47,828
51,069
3,008
48,061
51,154
3,007
48,147
44
45
46
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
5,237
5,181
56
4,780
4,733
47
7,213
7,162
51
4,780
4,733
47
4,850
4,795
55
6,235
6,119
116
6,856
6,799
57
7,213
7,162
51
163,000
105,790
103,007
2,783
216,654
118,940
115,831
3,109
285,151'
159,237
155,188
4,049
216,654
118,940
115,831
3,109
234,596
127,939
124,482
3,457
252,665
139,276
135,628
3,648
272,611
151,597
147,761
3,836
285,151'
159,237
155,188
4,049
19,853
19,501
352
42,964
42,560
404
58,586
57,945
641
42,964
42,560
404
48,008
47,575
433
50,934
50,446
488
54,152
53,539
613
58,586
57,945
641
717
717
14,450
14,450
25,121'
25,121'
14,450
14,450
18,157
18,157
20,933
20,933
23,819
23,819
25,121'
25,121'
36,640
18,378
3,426
6,161
8,675
40,300
20,005
4,344
7,011
8,940
42,207'
20,404'
5,09C
7,351'
9,362'
40,300
20,005
4,344
7,011
8,940
40,492
20,263
4,344
7,115
8,770
41,522
20,728
4,343
7,303
9,148
43,043
21,083
5,042
7,542
9,376
42,207'
20,404'
5,09c
7,351'
9,362'
253,343
167,297
27,982
30,517
27,547
276,633
185,170
30,755
31,895
28,813
276,633
185,170
30,755
31,895
28,813
278,204
185,479
31,275
32,629
28,821
279,605
185,515
31,868
33,222
29,000
280,677
185,699
31,208
34,352
29,418
47 Mortgage pools or trusts 2
48 Government National Mortgage Association
49
1- to 4-family
Multifamily
50
51
52
53
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
54
55
Federal National Mortgage Association3
1- to 4-family
56
57
58
59
60
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
61 Individual and others 4
1- to 4-family5
62
63 Multifamily
64 Commercial
65 Farm
1. Includes loans held by nondeposit trust companies but not bank trust
departments.
2. Outstanding principal balances of mortgages backing securities insured or
guaranteed by the agency indicated.
3. Outstanding balances on FNMA's issues of securities backed by pools of
conventional mortgages held in trust. The program was implemented by FNMA in
October 1981.
4. 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.
283,680
185,320
32,352
36,369
29,639
283,680
185,320
32,352
36,369
29,639
5. Includes a new estimate of residential mortgage credit provided by individuals.
NOTE. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve in conjunction with the
Federal Home Loan Bank Board and the Department of Commerce. Separation of
nonfarm mortgage debt by type of property, if not reported directly, and
interpolations and extrapolations when required, are estimated mainly by the
Federal Reserve. Multifamily debt refers to loans on structures of five or more
units.
A40
1.55
DomesticNonfinancialStatistics • March 1983
CONSUMER INSTALLMENT CREDIT' Total Outstanding, and Net ChangeA
Millions of dollars
1983
1984
1980
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Amounts outstanding (end of period)
1 Total
313,472
331,697
344,798
353,012
358,020
363,662
367,604
371,561
376,390
387,927
386,448
By major holder
Commercial banks
Finance companies
Credit unions
Retailers2
Savings and loans
Gasoline companies
Mutual savings banks
147,013
76,756
44,041
28,448
9,911
4,468
2,835
147,622
89,818
45,954
29,551
11,598
4,403
2,751
152,069
94,322
47,253
30,202
13,891
4,063
2,998
156,603
96,349
48,652
27,804
16,207
4,159
3,238
159,666
97,319
49,139
27,900
16,369
4,356
3,271
163,313
97,708
50,121
28,067
16,615
4,457
3,381
165,971
97,274
51,123
28,319
17,130
4,338
3,449
168,352
97,370
51,767
28,713
17,624
4,243
3,492
170,823
97,522
52,578
29,668
18,080
4,157
3,562
177,252
97,688
53,471
33,183
18,568
4,131
3,634
177,641
96,471
53,882
31,859
18,646
4,300
3,649
By major type of credit
9 Automobile
10 Commercial banks
Indirect paper
11
12
Direct loans
13 Credit unions
14 Finance companies
116,838
61,536
35,233
26,303
21,060
34,242
125,331
58,081
34,375
23,706
21,975
45,275
130,227
58,851
35,178
23,673
22,5%
48,780
136,183
61,870
3
3
23,269
51,044
()
()
138,689
63,425
3
3
23,502
51,762
()
()
141,677
66,065
3
3
23,972
51,640
()
()
142,477
67,413
3
3
24,451
50,613
()
()
143,621
68,828
3
3
24,759
50,034
()
()
144,663
70,034
3
3
25,147
49,482
()
()
146,078
71,778
3
3
25,574
48,726
()
()
146,842
73,042
3
3
48,029
25,771
15 Revolving
16 Commercial banks
17 Retailers
18 Gasoline companies
58,352
29,765
24,119
4,468
62,819
32,880
25,536
4,403
67,184
36,688
26,433
4,063
64,899
36,515
24,225
4,159
65,856
37,173
24,327
4,356
66,913
37,973
24,483
4,457
67,904
38,848
24,718
4,338
68,921
39,576
25,102
4,243
70,742
40,573
26,012
4,157
77,467
43,965
29,371
4,131
75,652
43,262
28,090
4,300
19 Mobile home
20 Commercial banks
21 Finance companies
22 Savings and loans
23 Credit unions
17,322
10,371
3,745
2,737
469
18,373
10,187
4,494
3,203
489
18,988
9,684
4,965
3,836
503
19,647
9,651
4,995
4,485
516
19,750
9,717
4,982
4,530
521
19,882
9,741
5,012
4,598
531
20,087
9,766
5,038
4,741
542
20,256
9,767
5,062
4,878
549
20,366
9,761
5,043
5,004
558
20,471
9,732
5,033
5,139
567
20,468
9,718
5,018
5,161
571
120,960
45,341
38,769
22,512
4,329
7,174
2,835
125,174
46,474
40,049
23,490
4,015
8,395
2,751
128,399
46,846
40,577
24,154
3,769
10,055
2,998
132,283
48,567
40,310
24,867
3,579
11,722
3,238
133,725
49,351
40,575
25,116
3,573
11,839
3,271
135,190
49,534
41,056
25,618
3,584
12,017
3,381
137,136
49,944
41,623
26,130
3,601
12,389
3,449
138,763
50,181
42,274
26,459
3,611
12,746
3,492
140,619
50,455
42,997
26,873
3,656
13,076
3,562
143,911
51,777
43,929
27,330
3,812
13,429
3,634
143,486
51,619
43,424
27,540
3,769
13,485
3,649
2
3
4
5
6
7
8
24 Other
25 Commercial banks
26 Finance companies
27 Credit unions
28 Retailers
29 Savings and loans
30 Mutual savings banks
()
()
Net change (during period)4
31 Total
1,448
18,217
2,418
4,406
4,840
3,388
2,375
4,885
4,671
6,614
4,343
-7,163
8,438
-2,475
329
1,485
739
95
607
13,062
1,913
1,103
1,682
-65
-85
1,111
1,024
197
-91
201
-51
27
2,422
470
573
368
456
77
40
2,766
909
662
272
188
5
38
2,317
239
510
5
147
65
105
1,829
-721
646
245
507
-167
36
2,629
620
942
150
376
131
37
2,749
205
912
251
438
58
58
4,688
-24
731
659
513
-31
78
2,656
89
916
338
217
72
55
477
-5,830
-3,104
-2,726
-1,184
7,491
8,495
-3,455
-858
-2,597
914
11,033
1,491
527
429
98
89
875
1,973
1,284
3
3
275
414
()
()
2,421
1,482
3
3
328
611
()
()
2,521
2,359
3
3
232
-70
()
()
285
1,243
3
3
309
-1,267
()
()
1,772
1,499
3
3
451
-178
1,238
1,302
(?)
(3)
436
-500
2,019
2,131
3
3
349
-461
()
()
2,555
2,042
3
3
85
428
45 Revolving
46 Commercial banks
47 Retailers
48 Gasoline companies
1,415
-97
773
739
4,467
3,115
1,417
-65
501
650
-98
-51
1,210
806
327
77
821
556
260
5
313
217
31
65
479
404
242
-167
1,145
856
158
131
1,300
999
243
58
1,723
1,148
606
-31
487
100
315
72
49 Mobile home
50 Commercial banks
51 Finance companies
52 Savings and loans
53 Credit unions
483
-276
355
430
-25
1,049
-186
749
466
20
-37
-74
-15
49
3
151
28
-6
123
6
141
68
7
59
7
70
-14
15
64
5
150
8
1
134
7
102
-10
-16
118
10
107
0
-14
111
10
136
18
-25
135
8
166
49
50
58
9
-927
-960
592
-1,266
-444
1,056
95
4,206
1,133
1,280
975
-314
1,217
-85
463
8
164
105
7
152
27
1,072
304
62
292
41
333
40
1,457
660
291
327
12
129
38
484
-245
294
273
-26
83
105
1,461
174
545
330
3
373
36
1,866
284
814
481
-8
258
37
2,026
448
719
466
8
327
58
2,736
1,391
462
374
53
378
78
1,135
465
-46
479
23
159
55
32
33
34
35
36
37
38
By major holder
Commercial banks
Finance companies
Credit unions
Retailers2
Savings and loans
Gasoline companies
Mutual savings banks
By major type of credit
39 Automobile
40 Commercial banks
41
Indirect paper
42
Direct loans
43 Credit unions
44 Finance companies
54 Other
55 Commercial banks
56 Finance companies
57 Credit unions
58 Retailers
59 Savings and loans
60 Mutual savings banks
A These data have been revised from December 1980 through February 1983.
1. The Board's series cover most short- and intermediate-term credit extended
to individuals through regular business channels, usually to finance the purchase
of consumer goods and services or to refinance debts incurred for such purposes,
and scheduled to be repaid (or with the option of repayment) in two or more
installments.
2. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
3. Not reported after December 1982.
()
()
()
()
4. For 1982 and earlier, net change equals extensions, seasonally adjusted less
liquidations, seasonally adjusted. Beginning 1983, net change equals outstandings,
seasonally adjusted less outstandings of the previous period, seasonally adjusted.
NOTE: Total consumer noninstallment credit outstanding—credit scheduled to
be repaid in a lump sum, including single-payment loans, charge accounts, and
service credit—amounted to, not seasonally adjusted, $80.7 billion at the end of
1981, $85.9 billion at the end of 1982, and $96.9 billion at the end of 1983.
Consumer Debt
1.56
A41
TERMS OF CONSUMER INSTALLMENT CREDIT
Percent unless noted otherwise
1983
Item
1981
1982
1984
1983
Aug.
Sept.
Nov.
Oct.
Dec.
Jan.
Feb.
INTEREST RATES
Commercial banks1
Auto finance companies
16.54
18.09
17.45
17.78
16.83
18.65
18.05
18.51
13.92
16.68
15.91
18.73
13.50
16.28
15.58
18.75
16.17
20.00
16.15
20.75
12.58
18.74
12.77
18.25
13.62
18.21
13.54
18.15
13.50
18.16
13.92
18.06
14.18
17.54
45.4
35.8
46.0
34.0
45.9
37.9
45.9
38.0
46.2
38.0
46.2
38.0
46.3
38.0
46.3
37.9
46.3
39.5
86.1
91.8
85.3
90.3
86.0
92.0
87
93
87
93
86
93
86
93
87
92
88
92
7,339
4,343
8,178
4,746
8,787
5,033
8,724
5,103
8,792
5,144
8,982
5,213
9,118
5,316
9,167
5,401
9,099
5,392
13.46
16.39
15.47
18.75
13.32
16.16
15.45
18.73
OTHER TERMS 3
Maturity (months)
Loan-to-value ratio
Amount financed (dollars)
1. Data for midmonth of quarter only.
2. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
3. At auto finance companies.
A42
1.57
DomesticNonfinancialStatistics • March 1983
F U N D S R A I S E D IN U.S. CREDIT
MARKETS
Billions of dollars; half-yearly d a t a are at seasonally a d j u s t e d annual rales.
1981
Transaction category, sector
1978
1979
1980
1981
1982
1983
1982
HI
H2
HI
H2
HK
H2
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors . . . .
By sector and instrument
2 U.S. government
i
Treasury securities
4 Agency issues and mortgages
369.8
386.0
343.2
377.2
395.3
509.5
392.4
362.0
356.8
434.8
497.3
521.7
53.7
55.1
-1.4
37.4
38.8
-1.4
79.2
79.8
-.6
87.4
87.8
-.5
161.3
162.1
-.9
186.6
186.7
-.1
87.8
88.3
-.5
86.9
87.3
-.4
106.9
108.3
-1.4
215.5
215.9
-.4
231.1
231.2
-.1
142.1
142.2
-.1
5 Private domestic nonfinancial sectors
6 Debt capital instruments
7
Tax-exempt obligations
8
Corporate bonds
9
Mortgages
10
Home mortgages
11
Multifamily residential
12
Commercial
Farm
13
316.2
199.7
28.4
21.1
150.2
112.2
9.2
21.7
7.2
348.6
211.2
30.3
17.3
163.6
120.0
7.8
23.9
11.8
264.0
192.0
30.3
26.7
135.1
96.7
8.8
20.2
9.3
289.8
158.4
21.9
22.1
114.5
75.9
4.3
24.6
9.7
234.1
152.4
50.5
18.8
83.0
56.6
1.3
20.0
5.2
322.9
227.9
44.3
15.0
168.6
111.4
9.2
45.2
2.9
304.6
179.3
21.1
26.1
132.0
92.6
4.9
25.2
9.3
275.1
137.5
22.6
18.0
96.9
59.2
3.7
23.9
10.1
249.9
139.7
41.7
10.8
87.3
55.8
4.2
21.4
5.9
219.3
166.1
59.4
26.9
79.9
58.6
-1.7
18.6
4.4
266.2
221.1
59.8
21.1
140.2
92.9
6.2
40.1
1.0
379.7
234.7
28.8
9.0
196.9
129.8
12.1
50.3
4.7
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
116.5
48.8
37.4
5.2
25.1
137.5
45.4
51.2
11.1
29.7
72.0
4.9
36.7
5.7
24.8
131.5
24.1
54.7
19.2
33.4
81.6
18.3
54.4
-3.3
12.2
95.0
54.2
19.1
-1.2
23.0
125.3
28.9
45.5
12.0
38.9
137.6
19.3
63.9
26.3
28.0
110.1
19.3
70.1
6.5
14.3
53.2
17.4
38.8
-13.0
10.2
45.1
39.8
6.6
-16.3
15.0
145.0
68.6
31.6
14.0
30.9
19
20
21
22
23
24
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
316.2
19.1
169.4
14.6
32.4
80.6
348.6
20.5
176.4
21.4
34.4
96.0
264.0
20.3
117.5
14.4
33.7
78.1
289.8
9.7
120.6
16.3
39.6
103.7
234.1
36.3
86.3
9.0
29.8
72.7
322.9
35.9
163.6
3.9
62.0
57.4
304.6
9.1
139.8
20.1
39.8
95.8
275.1
10.2
101.3
12.5
39.5
111.5
249.9
29.3
87.6
9.0
34.6
89.3
219.3
43.3
86.1
9.1
24.9
56.0
266.2
50.3
128.5
-.4
51.3
36.5
379.7
21.6
198.7
8.2
72.7
78.4
25 Foreign net borrowing in United States
26 Bonds
27 Bank loans n.e.c
28 Open market paper
29 U.S. government loans
33.8
4.2
19.1
6.6
3.9
20.2
3.9
2.3
11.2
2.9
27.2
.8
11.5
10.1
4.7
27.2
5.4
3.7
13.9
4.2
15.7
6.6
-6.2
10.7
4.5
19.2
3.3
5.9
6.0
4.0
31.9
3.3
3.1
20.6
4.9
22.5
7.6
4.2
7.1
3.5
12.8
2.4
-5.1
12.5
3.0
18.6
10.8
-7.2
9.0
6.0
18.5
4.4
14.7
-4.6
4.0
19.9
2.2
-2.8
16.5
4.0
403.6
406.2
370.4
404.4
411.0
528.7
424.4
384.5
369.6
453.4
515.7
541.6
30 Total domestic plus foreign
Financial sectors
31 Total net borrowing by financial sectors
By instrument
32 U.S. government related
33 Sponsored credit agency securities
34 Mortgage pool securities
36 Private financial sectors
37 Corporate bonds
38 Mortgages
39 Bank loans n.e.c
40 Open market paper
41 Loans from Federal Home Loan Banks
By sector
42 Sponsored credit agencies
43 Mortgage pools
44 Private financial sectors
45 Commercial banks
46 Bank affiliates
47 Savings and loan associations
48 Finance companies
49 REITs
74.6
82.5
63.3
85.4
69.3
88.6
87.4
83.4
89.8
48.7
74.1
103.2
37.1
23.1
13.6
.4
37.5
7.5
.1
2.8
14.6
12.5
47.9
24.3
23.1
.6
34.6
7.8
47.4
30.5
15.0
1.9
38.0
-.8
-.5
2.2
20.9
16.2
64.9
14.9
49.5
.4
4.4
2.3
.1
3.2
-2.0
.8
68.1
1.6
66.5
49.6
32.1
15.1
2.4
33.8
-1.4
-.2
1.1
18.4
15.8
61.3
23.6
37.0
.8
28.5
-1.2
.1
5.2
14.0
10.4
68.0
-2.4
70.4
68.3
5.7
62.5
20.5
17.2
.1
-2.9
13.2
-7.0
45.2
28.9
14.9
1.4
42.2
-.3
-.8
3.2
23.5
16.7
68.4
6.3
62.1
-.4
18.0
9.2
44.8
24.4
19.2
1.2
18.5
7.1
-.1
-.4
4.8
7.1
-19.7
5.8
.1
1.2
-18.0
-8.8
6.1
15.3
.1
-5.2
8.8
-12.9
35.0
19.2
.1
-.7
17.6
-1.2
23.5
13.6
37.5
1.3
7.2
13.5
18.1
-1.4
24.8
23.1
34.6
1.6
6.5
12.6
16.6
-1.3
25.6
19.2
18.5
.5
6.9
7.4
6.3
-2.2
32.4
15.0
38.0
.4
8.3
15.5
14.1
.2
15.3
49.5
4.4
1.2
1.9
-3.0
4.9
.1
1.6
66.5
20.5
.6
8.6
-5.2
17.2
.1
30.3
14.9
42.2
.2
6.9
16.8
18.5
.2
34.5
15.1
33.8
.5
9.7
14.1
9.7
.2
24.4
37.0
28.5
.7
9.7
9.1
9.5
.1
6.3
62.1
-19.7
1.7
-5.8
-15.2
.2
.1
-2.4
70.4
6.1
.8
6.1
-10.8
10.7
.1
5.7
62.5
35.0
.5
11.1
.3
23.7
.1
467.9
134.3
22.6
24.2
96.6
19.3
69.3
51.9
49.7
459.4
167.6
41.7
12.0
87.3
19.3
70.2
33.0
28.4
502.1
284.0
59.4
43.5
79.8
17.4
32.8
-22.1
7.4
589.8
299.1
59.8
40.7
140.2
39.8
16.1
-12.1
6.1
644.8
210.4
28.8
30.3
197.0
68.6
28.0
48.0
33.7
47.0
24.0
23.0
15.8
4.4
2.9
87.1
38.7
48.3
38.2
4.4
5.7
51.3
26.4
24.9
18.4
4.5
2.0
*
All sectors
50 Total net borrowing
51 U.S. government securities
52 State and local obligations
53 Corporate and foreign bonds
54 Mortgages
55 Consumer credit
56 Bank loans n.e.c
57 Open market paper
58 Other loans
478.2
90.5
28.4
32.8
150.2
48.8
59.3
26.4
41.9
488.7
84.8
30.3
29.0
163.5
45.4
53.0
40.3
42.4
433.7
122.9
30.3
34.6
134.9
4.9
47.8
20.6
37.8
489.8
133.0
21.9
26.7
113.9
24.1
60.6
54.0
55.8
480.3
225.9
50.5
27.7
83.0
18.3
51.4
5.4
17.9
617.3
254.7
44.3
35.5
168.6
54.2
22.1
18.0
19.9
511.8
131.8
21.1
29.1
131.1
28.9
51.8
56.1
61.8
External corporate equity funds raised in United States
59 Total new share issues
60 Mutual funds
61 All other
62
Nonfinancial corporations
63
Financial corporations
64
Foreign shares purchased in United States
1.9
-.1
1.9
-.1
2.5
-.5
-3.8
.1
-3.9
-7.8
3.2
.8
22.2
5.2
17.1
12.9
2.1
2.1
-3.7
6.8
-10.6
-11.5
.9
*
35.4
18.6
16.8
11.4
4.1
1.3
69.2
32.6
36.6
28.3
4.4
3.9
10.2
8.1
2.1
.9
.5
.7
-17.7
5.6
-23.2
-23.8
1.2
-.7
23.7
13.2
10.6
7.0
3.8
-.2
Flow of Funds
1.58
A43
DIRECT A N D INDIRECT SOURCES OF F U N D S TO CREDIT MARKETS
Billions of dollars, e x c e p t as n o t e d ; half-yearly data are at seasonally a d j u s t e d annual rates.
1982
1981
Transaction category, or sector
1978
1979
1980
1981
1982
1983
1983
HI
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
?
3
4
5
6
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to savings and loans
Other loans and securities
H2
HI
H2
HI'
H2
369.8
386.0
343.2
377.2
395.3
509.5
392.4
362.0
356.8
434.8
497.3
521.7
102.3
36.1
25.7
12.5
28.0
75.2
-6.3
35.8
9.2
36.5
97.0
15.7
31.7
7.1
42.4
97.4
17.2
23.4
16.2
40.6
109.3
17.9
61.1
.8
29.5
114.8
27.7
75.9
-7.0
18.3
113.8
31.2
21.9
16.7
44.1
81.0
3.1
25.0
15.8
37.1
107.9
17.7
48.1
10.4
31.7
110.8
18.2
74.0
-8.8
27.4
129.5
51.2
80.7
-12.9
10.4
100.0
4.2
71.0
-1.2
26.1
7
8
9
10
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
17.1
40.3
7.0
38.0
19.0
53.0
7.7
-4.6
23.7
45.6
4.5
23.2
24.1
48.2
9.2
16.0
16.7
65.3
9.8
17.6
9.8
68.9
10.9
25.2
27.9
47.2
2.4
36.4
20.3
49.2
16.0
-4.4
14.2
62.5
.1
31.1
19.1
68.1
19.5
4.1
8.2
69.1
12.1
40.1
11.3
68.7
9.7
10.3
11
12
Agency and foreign borrowing not in line 1
Sponsored credit agencies and mortgage pools
Foreign
37.1
33.8
47.9
20.2
44.8
27.2
47.4
27.2
64.9
15.7
68.1
19.2
45.2
31.9
49.6
22.5
61.3
12.8
68.4
18.6
68.0
18.5
68.3
19.9
338.4
54.3
28.4
23.4
95.6
149.3
12.5
379.0
91.1
30.3
18.5
91.9
156.3
9.2
318.2
107.2
30.3
19.3
73.7
94.8
7.1
354.4
115.9
21.9
19.4
56.7
156.9
16.2
366.6
207.9
50.5
15.4
-3.3
96.8
.8
482.0
227.0
44.3
12.1
44.6
146.9
-7.0
355.7
100.6
21.1
20.9
75.5
154.3
16.7
353.1
131.1
22.6
17.9
37.9
159.5
15.8
323.0
149.9
41.7
-1.7
11.7
131.7
10.4
411.0
265.8
59.4
32.4
-17.2
62.0
-8.8
454.2
247.9
59.8
19.9
18.3
95.3
-12.9
509.8
206.2
28.8
4.4
70.9
198.4
-1.2
Private financial intermediation
20 Credit market funds advanced by private financial institutions
21 Commercial banking
22 Savings institutions
73 Insurance and pension funds
24 Other finance
302.3
129.0
72.8
75.0
25.5
294.7
123.1
56.7
66.4
48.5
262.3
101.1
54.9
74.4
32.0
305.2
103.6
27.2
79.3
95.2
271.2
108.5
30.6
94.2
37.9
368.5
135.3
128.6
102.1
2.6
317.3
99.6
41.5
75.3
101.0
293.1
107.6
12.8
83.4
89.4
272.8
109.7
29.5
95.4
38.1
268.9
107.1
31.0
93.0
37.8
347.5
127.6
130.6
107.4
-18.0
389.5
143.0
126.6
96.8
23.1
75 Sources of funds
26 Private domestic deposits and RPs
27 Credit market borrowing
302.3
141.0
37.5
294.7
142.0
34.6
262.3
168.6
18.5
305.2
211.7
38.0
271.2
173.4
4.4
368.5
200.3
20.5
317.3
213.8
42.2
293.1
209.6
33.8
272.8
163.4
28.5
268.9
182.7
-19.7
347.5
211.6
6.1
389.5
189.0
35.0
78
29
30
31
32
123.8
6.5
6.8
62.2
48.4
118.1
27.6
.4
49.1
41.0
75.2
-21.7
-2.6
65.4
34.0
55.5
-8.7
-1.1
73.2
-7.9
93.5
-27.7
6.1
85.9
29.2
147.7
17.2
-6.0
88.0
48.4
61.3
-8.7
6.5
62.7
.8
49.8
-8.7
-8.7
83.8
-16.7
80.8
-30.1
-2.1
85.4
27.6
105.9
-25.4
14.1
86.4
30.7
129.8
-18.9
8.4
93.1
47.2
165.5
53.4
-20.4
82.9
49.6
Private domestic nonfinancial investors
33 Direct lending in credit markets
34 U.S. government securities
35 State and local obligations
36 Corporate and foreign bonds
37 Open market paper
38 Other
'.
73.6
36.3
3.6
-1.8
15.6
19.9
118.9
61.4
9.9
5.7
12.1
29.8
74.4
38.3
7.0
.6
-4.3
32.9
87.2
47.4
9.6
-8.9
3.7
35.4
99.7
58.1
30.9
-9.4
-2.0
22.1
134.0
89.8
31.9
-6.1
7.7
10.8
80.6
37.2
9.5
-5.5
-3.3
42.7
93.8
57.6
9.7
-12.4
10.7
28.2
78.7
43.1
28.4
-26.3
6.7
26.8
122.4
72.7
33.4
7.4
-10.7
19.6
112.8
88.0
47.7
-19.1
-11.2
7.4
155.3
91.5
16.1
6.8
26.6
14.2
39 Deposits and currency
40 Currency
41 Checkable deposits
42 Small time and savings accounts
43 Money market fund shares
44 Large time deposits
45 Security RPs
46 Deposits in foreign countries
152.2
9.3
16.2
65.9
6.9
44.4
7.5
2.0
151.4
7.9
18.7
59.2
34.4
23.0
6.6
1.5
180.0
10.3
5.0
83.1
29.2
44.7
6.5
1.1
221.7
9.5
18.1
47.2
107.5
36.4
2.5
.5
179.4
8.4
13.0
137.0
24.7
-5.2
3.8
-2.4
217.5
13.9
22.5
216.6
-44.1
-2.3
7.5
3.3
222.6
8.0
29.8
30.7
104.1
41.6
7.7
.8
220.7
11.0
6.5
63.6
110.8
31.2
-2.6
.2
166.2
4.5
6.7
95.1
39.4
21.2
1.1
-1.8
192.1
12.3
19.1
178.6
10.0
-31.6
6.6
-2.9
231.9
14.1
53.1
295.8
-84.0
-64.4
11.0
6.1
203.2
13.8
-8.0
137.4
-4.2
59.8
4.0
.4
47 Total of credit market instruments, deposits and
currency
Private domestic funds advanced
N Total net advances
14
15
16
17
18
19
U.S. government securities
State and local obligations
Corporate and foreign bonds
Residential mortgages
Other mortgages and loans
LESS: Federal Home Loan Bank advances
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
225.8
270.3
254.4
308.9
279.1
351.6
303.3
314.5
244.9
314.5
344.7
358.5
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
25.3
89.3
44.6
18.5
77.7
23.0
26.2
82.4
1.5
24.1
86.1
7.3
26.6
74.0
-10.2
21.7
76.5
42.5
26.8
89.2
27.8
21.1
83.0
-13.1
29.2
84.4
1.0
24.4
65.4
-21.3
25.1
76.5
21.2
18.5
76.4
63.7
MEMO: Corporate equities not included above
51 Total net issues
5? Mutual fund shares
53 Other equities
1.9
-.1
1.9
-3.8
.1
-3.9
22.2
5.2
17.1
-3.7
6.8
-10.6
35.4
18.6
16.8
69.2
32.6
36.6
10.2
2.1
-17.7
5.6
-23.2
23.7
13.2
10.6
47.0
24.0
23.0
87.1
38.7
48.3
51.3
26.4
24.9
4.5
-2.7
9.7
-13.5
16.8
5.4
22.1
-25.9
27.9
7.5
54.4
14.8
25.3
-15.1
18.9
-36.6
19.3
4.4
36.4
10.6
68.4
18.6
<10.3
11.0
48
49
50
54 Acquisitions by financial institutions
55 Other net purchases
NOTES BY LINE NUMBER.
1.
2.
6.
11.
13.
18.
26.
27.
29.
30.
31.
Line 1 of table 1.58.
Sum of lines 3-6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. Also
sum of lines 28 and 47 less lines 40 and 46.
Includes farm and commercial mortgages.
Line 39 less lines 40 and 46.
Excludes equity issues and investment company shares. Includes line 19.
Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates.
Demand deposits at commercial banks.
Excludes net investment of these reserves in corporate equities.
8.1
32. Mainly retained earnings and net miscellaneous liabilities.
33. Line 12 less line 20 plus line 27.
34-38. Lines 14-18 less amounts acquired by private finance. Line 38 includes
mortgages.
40. Mainly an offset to line 9.
47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46.
48. Line 2/line 1.
49. Line 20/line 13.
50. Sum of lines 10 and 29.
51. 53. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding, may be obtained from Flow of Funds Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
A44
2.10
Domestic Nonfinancial Statistics • March 1983
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1983
Measure
1981
June
1
1984
1983
1982
July
Aug.
Sept.
Oct.
Nov/
Dec.'
Jan/
Feb.
1 Industrial production
151.0
138.6
147.6
146.4
149.7
151.8
153.8
155.0
155.3
156.1
158.0
159.9
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
150.6
149.5
147.9
151.5
154.4
151.6
141.8
141.5
142.6
139.8
143.3
133.7
149.1
147.1
151.7
140.8
156.6
145.2
148.1
146.4
152.4
138.2
154.5
143.7
150.9
149.0
154.8
141.0
158.1
147.8
153.2
150.7
156.3
143.1
162.2
149.7
154.9
152.1
157.3
144.9
165.4
152.2
155.6
152.7
156.9
147.0
166.5
154.0
155.8
153.2
156.1
149.1
165.5
154.5
157.0
154.8
157.3
151.3
165.3
154.6
159.0
156.8
159.6
153.0
167.1
156.4
160.7
158.2
161.1
154.2
169.7
158.8
150.4
137.6
148.3
147.4
150.6
152.8
155.1
156.2
156.4
156.9
159.2
161.5
79.4
80.7
71.1
70.1
75.2
75.2
74.9
74.4
76.4
76.5
77.3
77.4
78.4
78.6
78.9
79.5
78.8
79.6
78.9
79.6
80.0
80.5
81.0
81.6
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
111.0
111.0
138.0
151.0
137.0
154.C
143.0
139.0
145.0
134.0
150.0
n.a.
12
13
14
15
16
17
18
19
20
21
Nonagricultural employment, total4
Goods-producing, total
Manufacturing, total
Manufacturing, production-worker . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable 6
personal income5
Retail sales
138.5
109.4
103.7
98.0
154.4
386.5
349.7
287.3
373.7
330.6
136.2
102.6
96.9
89.4
154.6'
409.3
367.2
286.2
397.3
326.0
136.8
101.5
96.0
88.7
156.1
453.3
389.8
300.4
426.3
372.9
136.5
100.9
95.6
88.2
156.1
433.7
389.0
299.2
422.0
378.9
137.0
101.8
96.3
89.2
156.3
436.1
391.9
302.6
429.0
380.3
136.4
102.2
96.6
89.5
155.1
437.5
393.6
304.6
430.1
373.7
138.1
102.7
97.0
89.9
157.5
441.5
396.2
308.2
434.1
379.1
138.4
103.7
98.0
91.2
157.5
446.5
400.6
310.2
438.9
385.3
138.8
104.3
98.6
91.9
157.8
450.0
401.7
312.8
442.4
389.8
139.2
104.7
99.1
92.5
158.1
453.7
404.1
314.3
445.9
390.3
139.6
105.6
99.7
93.1
158.3
458.5
409.4
318.6
450.6
399.0
140.2
106.2
100.2
93.8
158.8
22
23
Prices7
Consumer
Producer finished goods
272.4
269.8
289.1
280.7
298.4
285.2
298.1
285.0
299.3
285.7
300.3
286.1
301.8
285.1
302.6
287.9
303.1
286.8
303.5
287.1
305.2
289.4
1. The capacity utilization series has been revised back to January 1967.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, Department of Commerce, and other sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
2.11
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.
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
1983
Q2
Ql
1983
Q3
Q4
Output (1967 = 100)
Ql
Q2
1983
Q3
Q4
Capacity (percent of 1967 output)
Q2
Ql
Q3
Q4
Utilization rate (percent)
1 Total industry
2 Mining
3 Utilities
138.5
116.7
163.6
144.5
112.3
169.6
151.8
116.1
178.2
155.5
121.0
177.6
194.6
165.2
208.5
195.5
165.3
209.8
196.4
165.4
211.1
197.3
165.5
212.4
71.2
70.6
78.5
73.9
67.9
80.8
77.3
70.2
84.4
78.8
73.1
83.6
4 Manufacturing
5 Primary processing
6 Advanced processing
138.4
137.0
139.7
145.2
145.2
145.1
152.8
152.8
152.8
156.5
156.4
156.1
195.7
194.3
196.5
196.6
194.8
197.6
197.5
195.3
198.6
198.4
195.8
199.7
70.7
70.5
71.1
73.8
74.6
73.5
77.4
78.3
76.9
78.9
79.9
78.2
7 Materials
134.8
141.7
149.9
154.4
192.3
192.9
193.4
194.0
70.1
73.5
77.5
79.6
8 Durable goods
9 Metal materials
10 Nondurable goods
11 Textile, paper, and chemical
Paper
12
Chemical
13
125.2
78.6
163.7
169.3
149.9
204.7
134.7
84.9
171.7
179.6
153.4
219.4
144.2
89.3
179.1
188.0
162.8
227.8
150.3
93.7
183.9
193.8
167.7
235.9
195.2
140.2
217.8
229.4
165.3
294.8
195.6
139.9
218.8
230.7
166.1
296.6
196.0
139.8
219.6
231.6
166.9
298.3
196.5
139.6
220.6
232.7
167.7
300.1
64.2
56.1
75.2
73.8
90.7
69.4
68.9
60.7
78.5
77.9
92.3
74.0
73.6
63.9
81.5'
81.2
97.5
76.4
76.5
67.2
83.4
83.2
100.0
78.6
14 Energy materials
122.2
121.5
127.4
127.6
153.9
154.3
154.7
155.3
79.5
78.7
82.3
82.2
Labor Market
2.11
A45
Continued
Previous cycle1
Latest cycle2
1983
Low
Feb.
1984
1983
Series
High
Low
High
June
July
Aug.
Oct.
Sept.
Nov/
Dec/
Jan/
Feb.
Capacity utilization rate (percent)
88.4
91.8
94.9
71.1
86.0
82.0
87.3
88.5
86.7
76.5
84.0
83.8
71.0
69.9
77.7
74.8
68.1
80.8
76.3
69.5
83.5
77.3
70.2
85.0
78.2
70.8
84.8
78.7
71.5
83.3
78.7
73.2
83.0
79.0
74.7
84.5
79.8
75.1
83.0
80.7
74.7
82.2
18 Manufacturing
87.9
69.0
87.5
75.5
70.6
74.9
76.4
77.3
78.4
78.9
78.8
78.9
80.0
81.0
19
20
93.7
85.5
68.2
69.4
91.4
85.9
72.6
77.0
70.8
70.8
75.7
74.4
77.1
76.0
78.1
76.9
79.7
77.8
80.4
77.9
80.0
78.0
79.2
78.6
80.6
79.8
81.8
80.7
92.6
91.4
97.8
69.3
63.5
68.0
88.9
88.4
95.4
74.2
68.4
59.4
70.1
64.2
56.1
74.4
70.0
61.2
76.5
72.1
62.3
77.4
73.6
64.0
78.6
75.2
65.5
79.5
76.1
68.0
79.6
76.5
66.8
79.6
76.9
66.6
80.5
78.3
68.1
81.6
79.8
70.1
IS Total industry
16 Mining
17 Utilities
Primary processing
Advanced processing . . . .
71 Materials
V.
Durable goods
23
Metal materials
94.4
67.4
91.7
77.5
75.3
79.6
80.7
81.1
82.9
84.1
83.8
82.2
82.6
83.4
76
27
Nondurable goods
Textile, paper, and
chemical
Paper
Chemical
95.1
99.4
95.5
65.4
72.4
64.2
92.3
97.9
91.3
75.5
89.8
70.7
74.1
90.8
69.9
79.2
93.1
75.3
80.4
96.7
75.9
80.5
96.9
75.5
82.6
99.0
77.8
84.1
99.4
79.7
83.7
101.3
79.0
81.9
99.4
77.1
82.4
99.5
77.7
83.1
n.a.
n.a.
28
Energy materials
94.5
84.4
88.7
84.4
79.2
78.8
82.6
82.8
81.6
81.4
81.8
83.3
83.4
83.9
24
25
1. Monthly high 1973; monthly low 1975.
2.12
2. Preliminary; monthly highs December 1978 through January 1980; monthly
lows July through October 1980.
LABOR FORCE, EMPLOYMENT, A N D UNEMPLOYMENT
T h o u s a n d s of p e r s o n s ; monthly data are seasonally a d j u s t e d . E x c e p t i o n s noted.
1983
Category
1981
1982'
1984
1983
July
Aug.
Sept.
Oct.
Nov.
Dec/
Jan/
Feb.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population1
172,272
174,450
176,414
176,498
176,648
176,811
176,990
177,151
177,325
177,733
177,882
2 Labor force (including Armed Forces) 1
3 Civilian labor force
110,812
108,670
112,383
110,204
113,749
111,550
114,017
111,825
114,325
112,117
114,438
112,229
114,077
111,866
114,235
112,035
114,340
112,136
114,415
112,215
114,896
112,693
Nonagricultural industries2
Agriculture
97,030
3,368
96,125
3,401
97,450
3,383
97,726
3,499
98,035
3,449
98,568
3,308
98,730
3,240
99,349
3,257
99,585
3,356
99,918
3,271
100,496
3,395
8,273
7.6
61,460
10,678
9.7
62,067
10,717
9.6
62,665
10,600
9.5
62,481
10,633
9.5
62,323
10,353
9.2'
62,373
9,896
8.8
62,913
9,429
8.4
62,916
9,195
8.2
62,985
9,026
8.0
63,318
8,801
7.8
62,986
91,156
89,596
89,986
90,152
89,748
90,851
91,084
91,355
91,599
91,863
92,249
20,170
1,132
4,176
5,157
20,551
5,301
20,547
16,024
18,853
1,143
3,911
5,081
20,401
5,340
19,064
15,803
18,678
1,021
3,949
4,943
20,508
5,456
19,685
15,747
18,733
1,017
3,974
4,984
20,529
5,465
19,770
15,680
18,793
1,023
4,014
4,341
20,580
5,488
19,835
15,674
18,871
1,026
4,038
5,031
20,612
5,499
19,913
15,861
19,064
1,044
4,060
5,019
20,666
5,503
19,956
15,775
19,172
1,045
4,094
5,019
20,718
5,515
20,016
15,776
19,280
1,047
4,088
5,015
20,781
5,525
20,093
15,770
19,385
1,050
4,176
5,042
20,846
5,553
20,096
15,715
19,495
1,053
4,212
5,043
20,601
5,563
20,242
15,727
4
5
6
Number
7
Rate (percent of civilian labor force) . . .
8 Not in labor force
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment3
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
Finance
Service
Government
1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1983
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A46
2.13
Domestic Nonfinancial Statistics • March 1983
INDUSTRIAL PRODUCTION Indexes and Gross Value
Monthly data are seasonally adjusted
Grouping
1967
proportion
1983
avg.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept
Oct.
Nov/
Dec.
Index (1967 = 100)
MAJOR MARKET
1 Total index
2 Products
3 Final products
Consumer goods
4
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 tobacco ..
22
Nonfood staples
23
Consumer chemical products
24
Consumer paper products . . .
25
Consumer energy products ..
26
Residential utilities
Equipment
Business
Industrial
Building and mining
Manufacturing
Power
100.00
147.6
138.1
140.0
142.6
144.4
146.4
149.7
151.8
153.8
155.0
155.3
156.1
158.0
159.9
60.71
47.82
27.68
20.14
12.89
39.29
149.2
147.1
151.8
140.7
156.6
145.3
140.3
138.9
143.4
132.7
145.3
134.9
141.6
139.9
144.3
133.8
147.8
137.6
144.5
142.8
147.7
136.2
150.8
139.7
146.2
144.5
150.4
136.5
152.2
141.7
148.1
146.4
152.4
138.2
154.5
143.7
150.9
149.0
154.8
141.0
158.1
147.8
153.2
150.7
156.3
143.1
162.2
149.7
154.9
152.1
157.4
144.9
165.3
152.3
155.6
152.7
156.9
147.0
166.5
154.0
155.8
153.2
156.1
149.1
165.5
154.5
157.0
154.8
157.3
151.3
165.3
154.6
159.0
156.8
159.6
153.0
167.1
156.4
160.7
158.2
161.1
154.2
169.7
158.8
7.89
2.83
2.03
1.90
147.5
158.2
134.0
117.4
219.4
141.5
116.3
134.4
144.3
140.5
144.9
117.8
102.7
213.6
138.1
106.1
109.7
180.5
137.9
145.5
152.2
124.9
107.4
221.5
141.8
112.8
116.1
181.9
140.9
149.2
160.0
135.4
118.3
222.6
143.2
114.4
118.4
185.6
141.3
152.9
167.0
145.4
129.8
221.9
144.9
116.2
119.7
187.3
143.0
154.2
168.1
147.0
132.0
221.8
146.4
121.2
125.0
187.5
143.2
157.4
172.9
153.1
135.0
223.1
148.7
125.2
129.7
186.3
145.9
156.7
171.3
149.2
129.6
227.4
148.4
129.2
133.3
185.5
143.6
155.9
171.5
149.2
129.4
228.2
147.2
127.0
131.3
182.7
143.4
158.4
178.4
157.8
137.4
230.7
147.2
125.4
129.2
184.0
143.9
163.7
184.1
163.4
140.7
236.7
152.2
137.5
141.2
186.8
145.9
164.9
182.5
160.6
139.5
238.2
155.1
143.2
.80
5.06
1.40
1.33
1.07
2.59
19.79
4.29
15.50
8.33
7.17
2.63
1.92
2.62
1.45
120.1
108.8
178.0
140.0
156.7
129.7
136.3
142.6
116.4
99.9
209.3
132.8
105.0
108.5
168.3
133.3
153.5
147.0
147.5
150.5
152.3
153.6
155.6
157.1
157.5
157.1
156.1
156.9
158.0
159.6
163.8
157.4
149.5
166.5
220.9
127.9
140.2
162.9
158.1
148.4
169.4
225.6
128.1
143.3
166.1
161.1
150.9
172.9
225.5
129.2
152.2
175.5
162.8
153.2
174.0
227.8
128.6
153.4
174.3
164.3
155.9
174.1
229.0
130.1
151.2
170.5
166.1
156.6
177.2
233.8
132.6
153.2
173.2
168.0
156.3
181.6
239.7
137.4
155.7
179.9
168.0
154.9
183.2
241.5
138.2
157.7
182.8
167.2
156.0
180.3
238.7
137.6
153.0
174.5
165.4
154.5
178.1
232.4
136.6
154.1
175.8
165.5
155.2
177.4
231.5
137.2
152.5
177.9
166.6
168.1
178.2
233.9
138.7
151.2
179.7
143.7
113.1
145.3
99.7
116.2
146.9
113.5
141.8
101.7
116.6
147.7
114.5
146.2
102.5
115.0
150.2
116.3
148.7
105.0
114.1
153.3
119.9
154.4
108.9
114.6
156.6
124.3
159.2
113.3
119.0
158.8
125.6
160.8
115.0
118.8
161.3
126.6
166.9
114.6
118.5
164.1
128.6
175.8
114.3
119.4
166.6
130.6
185.3
114.7
118.4
168.1
131.7
184.6
116.2
120.5
169.2
131.8
178.0
118.0
122.8
185.4
264.3
92.0
70.2
186.1
265.0
92.6
71.3
189.5
270.9
93.2
70.4
191.9
276.0
92.0
70.8
194.0
277.4
95.9
70.8
196.7
281.2
97.6
71.0
201.3
288.1
100.0
70.9
205.1
292.5
103.2
73.5
208.1
2%.7
105.3
73.2
210.1
297.8
109.7
72.7
212.3
300.3
111.6
175.7
231.4
133.2
150.9
120.8
107.3
203.9
128.8
105.8
147.5
12.63
6.77
1.44
3.85
1.47
153.1
120.4
159.3
107.0
117.1
142.7
113.7
153.6
97.9
5.86
3.26
1.93
.67
191.0
272.7
95.0
69.6
176.1
251.2
63.4
179.2
255.7
90.1
63.4
36 Defense and space
7.51
119.9
116.1
117.0
118.2
117.6
118.0
120.4
120.2
121.8
122.9
124.0
125.7
127.5
129.2
Intermediate products
37 Construction supplies
38 Business supplies
39 Commercial energy products
6.42
6.47
1.14
142.4
170.7
184.8
129.7
160.9
178.6
133.1
162.3
180.3
136.4
165.2
183.3
138.4
166.0
183.1
142.1
166.8
181.4
145.8
170.4
185.2
149.0
175.3
186.9
151.1
179.3
190.2
152.3
180.6
187.0
151.6
179.4
187.6
151.4
179.1
186.9
154.8
179.4
186.5
157.8
20.35
4.58
5.44
10.34
5.57
138.6
113.5
176.4
129.9
90.3
125.3
128.7
104.0
162.5
121.9
86.0
132.4
106.5
167.2
125.4
87.8
134.7
108.5
170.6
127.5
89.3
137.0
109.5
175.8
128.7
89.6
141.1
115.6
180.8
131.5
90.8
144.2
119.9
183.6
134.2
93.1
147.2
123.1
186.0
137.4
94.5
149.4
124.9
188.3
139.8
98.0
150.3
125.0
192.5
139.3
97.1
151.1
127.5
193.4
139.3
96.6
153.9
128.8
198.1
141.7
98.5
157.0
131.5
202.1
144.5
10.47
175.0
164.0
167.5
168.7
172.1
174.3
177.0
178.0
183.4
185.3
184.8
181.7
182.8
185.0
7.62
1.85
183.2
170.0
106.4
150.1
174.3
110.6
149.5
212.5
163.8
127.7
175.9
110.6
150.8
214.9
163.2
129.1
180.2
114.6
154.4
219.6
164.3
129.7
182.8
116.0
155.0
223.6
166.1
129.9
186.1
192.0
123.1
165.4
233.1
179.1
132.6
195.4
124.0
166.3
238.7
175.9
131.9
194.7
121.9
169.8
237.0
176.6
130.6
191.2
121.2
167.0
231.9
174.0
129.7
192.6
121.3
167.3
234.3
173.3
132.1
194.5
119.0
161.1
225.9
166.5
131.3
186.4
121.5
161.8
225.1
170.6
133.0
121.9
114.4
131.1
121.6
113.9
131.0
121.1
113.8
129.9
121.8
112.6
132.9
127.7
115.4
142.7
128.0
113.9
145.2
126.4
112.8
142.8
126.3
114.1
141.2
127.1
115.5
141.1
129.5
117.6
143.9
129.8
118.3
143.8
130.8
122.0
131.9
154.5
121.9
126.3
133.9
161.7
121.6
129.2
133.8
162.4
121.1
130.2
133.6
160.4
121.8
132.3
138.5
162.9
127.7
133.3
139.4
165.2
128.0
135.2
139.0
167.5
126.4
135.5
137.7
163.3
126.3
135.9
138.5
164.3
127.1
137.4
139.7
162.9
129.5
140.6
139.7
161.9
129.8
143.1
140.7
27
28
29
30
31
32
33
34
35
Commercial transit, farm
Commercial
Transit
Farm
Materials
40 Durable goods materials
41 Durable consumer parts
42 Equipment parts
43 Durable materials n.e.c
44
Basic metal materials
45 Nondurable goods materials
46 Textile, paper, and chemical
materials
47
Textile materials
48
Paper materials
49
Chemical materials
50 Containers, nondurable
51 Nondurable materials n.e.c
1.62
4.15
1.70
1.14
116.1
158.6
222.7
168.1
130.5
116.0
88.2
101.6
158.8
118.2
82.4
206.2
159.6
130.5
52 Energy materials
53 Primary energy
54 Converted fuel materials
8.48
4.65
3.82
124.8
114.6
137.1
121.8
Supplementary groups
55 Home goods and clothing
56 Energy, total
57 Products
58 Materials
9.35
12.23
3.76
8.48
129.9
135.9
119.9
131.0
151.9
161.2
124.8
115.4
129.6
121.8
130.8
Output
2.13
A47
Continued
Grouping
SIC
code
1967
proportion
1984
1983
1983
avg.
Feb/
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov/
Dec.
Jan.P
Feb/
Index (1967 = 100)
MAJOR INDUSTRY
12.05
6.36
5.69
3.88
87.95
35.97
51.98
142.8
116.6
172.1
195.8
148.3
168.1
134.5
137.5
115.6
162.0
183.0
138.2
159.0
123.9
137.7
112.6
165.8
188.2
140.4
160.7
126.3
138.9
111.6
169.3
192.7
143.1
163.3
129.1
139.7
112.8
169.7
192.9
145.1
165.4
131.0
139.6
112.6
169.8
192.0
147.4
167.8
133.2
143.8
115.0
176.0
200.9
150.6
170.6
136.8
146.0
116.1
179.3
205.4
152.8
172.9
138.8
146.5
117.1
179.3
204.5
155.1
174.6
141.6
145.8
118.3
176.5
200.7
156.2
175.6
142.8
147.2
121.1
176.3
200.2
156.4
174.8
143.6
150.2
123.7
179.9
205.0
156.9
174.4
144.8
149.3
124.4
177.1
200.7
159.2
175.9
147.7
148.3
123.7
175.8
198.8
161.5
177.7
150.3
10
11.12
13
14
.51
.69
4.40
.75
80.9
136.3
116.6
122.8
75.1
136.5
117.0
115.7
75.2
127.3
114.4
114.0
79.8
125.3
112.2
117.7
84.4
125.6
112.5
122.5
82.9
124.6
112.6
121.7
82.5
139.9
113.9
121.2
80.9
141.2
114.7
125.0 .
78.7
140.5
116.3
126.5
81.0
142.7
117.3
127.4
84.6
144.8
119.8
132.2
82.9
145.2
123.3
133.9
85.2
151.5
123.0
134.9
163.1
119.4
20
21
22
23
26
8.75
.67
2.68
3 31
3.21
156.4
112.1
140.8
153.0
108.5
130.7
152.0
113.4
131.9
153.7
114.8
136.6
155.6
112.9
139.6
157.7
120.0
141.8
159.9
112.9
146.7
159.3
117.1
147.4
158.2
112.7
148.7
157.6
109.1
148.7
157.1
109.5
145.8
157.7
109.3
145.4
145.7
156.3
157.0
161.5
163.0
165.1
168.6
170.4
171.5
172.1
170.9
172.3
172.6
152.0
218.3
124.3
296.1
62.3
157.8
220.3
123.2
306.9
64.4
161.7
224.1
125.1
310.9
64.2
162.7
228.4
123.6
310.8
64.0
162.0
225.6
125.4
309.1
63.2
163.3
222.2
116.4
312.7
64.9
164.9
224.0
118.4
314.4
60.7
166.5
100.7
1 Mining and utilities
2 Mining
3 Utilities
4
Electric
5 Manufacturing
6 Nondurable
7 Durable
8
9
10
11
Mining
Metal
Coal
Oil and gas extraction
Stone and earth minerals
12
13
14
15
16
Nondurable manufactures
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
164.3
155.6
27
28
29
30
31
4.72
7.74
1.79
2.24
.86
152.7
215.1
120.5
291.8
61.8
144.0
202.3
111.7
264.0
61.7
145.9
205.7
114.8
272.0
59.4
145.7
208.5
120.6
283.0
58.7
145.2
211.0
123.8
288.0
59.6
147.4
214.7
123.0
293.8
60.1
Durable manufactures
Ordnance, private and government
Lumber and products
Furniture and fixtures
Clay, glass, stone products
19.91
24
25
32
3.64
1.64
1.37
2.74
95.4
137.2
170.4
143.4
93.3
130.2
154.0
131.8
91.9
128.7
161.0
135.6
93.2
132.1
167.7
138.3
92.6
135.8
169.6
139.2
93.3
137.4
173.1
141.7
95.2
141.3
175.2
145.8
96.8
141.6
179.0
147.9
98.0
142.3
180.7
151.7
98.8
141.7
181.0
151.9
99.3
141.0
177.5
152.7
99.8
143.3
177.4
154.2
100.0
144.1
178.9
156.8
Primary metals
Iron and steel
Fabricated metal products
Nonelectrical machinery
Electrical machinery
33
331.2
34
35
36
6.57
4.21
5.93
9.15
8.05
85.4
71.5
120.2
150.5
185.6
77.9
64.3
110.3
136.2
168.9
81.2
66.9
113.9
138.6
173.8
83.1
68.5
115.3
143.1
177.2
84.9
69.5
115.5
146.1
180.1
84.8
69.7
118.5
149.5
182.4
85.5
71.8
122.7
154.2
188.3
87.5
75.1
126.0
157.3
189.2
90.6
78.2
127.4
158.3
195.8
95.3
84.3
26.9
159.2
198.4
92.2
79.2
128.5
161.8
200.1
90.2
74.1
129.2
163.7
201.4
94.6
82.9
131.3
165.8
206.8
133.3
168.5
211.0
37
371
9.27
4.50
117.8
137.1
109.6
123.0
110.1
123.2
111.4
125.5
113.8
130.4
116.6
136.2
119.7
142.3
121.1
144.3
124.7
150.9
125.5
150.9
127.3
152.9
130.6
158.6
133.7
163.8
135.6
164.9
372-9
38
39
4.77
2.11
1.51
99.6
158.7
146.2
97.0
153.4
133.9
97.7
154.0
136.9
98.1
155.1
145.0
98.1
156.0
149.0
98.1
156.1
151.0
98.5
159.3
153.7
99.2
161.6
153.1
100.0
163.6
151.7
101.6
163.0
149.1
103.2
163.0
148.9
104.3
164.6
149.3
105.3
167.0
151.3
107.9
168.9
153.0
17
18
19
20
21
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products
Leather and products
22
23
24
25
26
27
28
29
30
31 Transportation equipment
32 Motor vehicles and parts
33 Aerospace and miscellaneous
transportation equipment...
34 Instruments
35 Miscellaneous manufactures
125.5
98.0
Gross value (billions of 1972 dollars, annual rates)
MAJOR MARKET
36 Products, total
507.4
612.5
578.4
584.1
592.6
601.8
610.5
620.5
626.6
637.0
637.8
638.4
644.0
653.7
659.5
37 Final
38 Consumer goods.
39 Equipment
40 Intermediate
390.9
277.5
113.4
116.6
472.5
328.6
143.9
140.0
447.3
312.0
135.3
131.1
451.3
313.8
137.5
132.8
457.7
318.8
138.9
134.9
465.6
325.6
140.0
136.2
471.8
330.4
141.4
138.7
478.2
333.7
144.5
142.3
481.8
336.7
145.1
144.8
489.9
341.6
148.4
147.1
490.7
340.2
150.5
147.1
490.8
338.3
152.5
147.6
496.5
340.8
155.7
147.5
503.2
345.2
158.0
150.5
508.4
348.3
160.1
151.1
1. 1972 dollar value.
A48
2.14
Domestic Nonfinancial Statistics • March 1983
HOUSING A N D CONSTRUCTION
M o n t h l y figures are at seasonally a d j u s t e d annual rates e x c e p t as noted.
1984
1983
Item
1981
1982
1983'
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov/
Dec/
Jan.
Private residential real estate activity (thousands of units)
NEW UNITS
1 Permits authorized
1-family
2
3 2-or-more-family
986
564
421
1,001
546
454
1,590
891
699
1,536
841
695
1,635
940
695
1,761
1,013
748
1,782
920
862
1,652
874
778
1,506
837
669
1,630
880
750
1,642
911
731
1,549
898
651
1,772
976
796
4 Started
5
1-family
6 2-or-more-family
1,084
705
379
1,062
663
400
1,701
1,067
634
1,549'
1,03c
519'
1,779'
1,150'
629'
1,743'
1,124'
619'
1,793'
1,048'
745'
1,873'
1,124'
749'
1,679'
1,038'
641'
1,672'
1,017'
655'
1,730
1,074
656
1,666
1,011
655
1,915
1,241
674
682
382
301
720
400
320
1,012
529
482
859
489
370
900
518
382
933
532
400
963
537
425
977
542
435
988
542
446
987'
536'
45(K
1,006
540
466
1,027
546
480
1,266
818
447
1,006
631
374
1,385
921
463
1,164
803
361
1,353
851
502
1,386
959
427
1,432
1,000
432
1,729
1,050
679
1,476
966
510
1,602'
1,043'
559'
1,418
986
432
1,415
953
462
13 Mobile homes shipped
241
239
295
284'
289'
299'
296'
307'
305'
308'
313
310
Merchant builder activity in 1-family units
14 Number sold
15 Number for sale, end of period1
436
278
413
255
622
307
634'
266
654'
273
655'
283'
606'
289'
558'
296
597'
299'
624
301
640
307
748
303
688
304
Price (thousands of dollars)2
Median
Units sold
Average
17 Units sold
68.8
69.3
75.6
74.7
74.5
75.8
75.2
76.8
81.0
75.9'
76.5
76.5
75.3
83.1
83.8
90.2
87.6
88.8
90.9
89.2
91.3
97.8
89.5'
91.7
94.9
90.4
2,418
1,991
2,719
2,680'
2,840'
2,820'
2,780'
2,760'
2,770'
2,720'
2,700
2,850
2,990
66.1
78.0
67.7
80.4
69.8
82.5
68.8
81.3
69.2
81.7
71.4
84.7
71.8
84.2
71.5
84.7
69.9
82.8
69.8
83.0
70.4
83.4
69.9
82.9
71.9
85.7
7 Under construction, end of period1
1-family
8
9 2-or-more-family
10 Completed
11 1-family
12 2-or-more-family
16
n a.
EXISTING UNITS (1-family)
18 Number sold
Price of units sold (thousands of dollars)2
19 Median
20 Average
Value of new construction3 (millions of dollars)
CONSTRUCTION
21 Total put in place
239,418 232,048 265,089 247,360 254,763 264,321 274,205 281,997 285,384 271,650
275,384 277,797 281,769
22 Private
23 Residential
24 Nonresidential, total
Buildings
25
Industrial
26
Commercial
27
Other
28
Public utilities and other
186,069 180,979 214,802 199,462 206,029 214,729 222,759 228,529 232,561 222,968
86,567 74,809 112,867 101,961 107,494 113,524 122,297 127,136 129,142 121,688
99,502 106,170 101,935 97,501 98,535 101,205 100,462 101,393 103,419 101,280
225,286 228,377 232,455
119,143 119,317 122,602
106,143 109,060 109,853
29 Public
30 Military
31 Highway
32 Conservation and development
33 Other
17,031
34.243
9,543
38,685
17,346
37,281
10,507
41,036
13,143
36,267
11,705
40,820
13,223
33,619
10,770
39,889
13,047
33,291
11,237
40,960
13,136
35,898
10,974
41,197
12,227
35,871
11,250
41,114
14,227
36,277
12,038
38,851
13,166
36,901
12,564
40,788
10,532
36,118
12,279
42,351
12,280
38,081
12,001
43,781
12,921
38,955
12,121
45,063
13,257
41,705
13,343
41,548
53,346
1,966
13,599
5,300
32,481
51,068
2,205
13,521
5,029
30,313
50,287
2,470
14,178
4,825
28,814
47,897
2,784
12,900
5,023
27,190
48,734
2,255
13,044
4,548
28,887
49,592
1,894
12,925
4,853
29,920
51,446
2,655
14,091
5,608
29,092
53,469
2,258
15,906
5,210
30,095
52,823
2,705
15,896
5,048
29,174
48,682
2,515
14,644
4,258
27,265
50,098
2,619
14,360
3,905
29,214
49,420
2,687
14,780
4,896
27,057
49,313
2,701
13,605
4,258
28,749
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly
comparable with data in prior periods because of changes by the Bureau of the
Census in its estimating techniques. For a description of these changes see
Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
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
A49
CONSUMER A N D PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Change from 3 months earlier
(at annual rate)
Item
Change from 1 month earlier
1984
Jan.
Mar/
June'
1984
1983
1983
1983
Jan.
Sept/
Dec/
Oct/
Sept/
Index
level
Jan.
1984
(1967 1
= 100)
Dec/
Nov/
Jan.
CONSUMER PRICES2
3.8
4.1
1.2
5.4
4.5
4.0
.4
.4
.4
.2
.6
305.2
2.5
-0.5
4.7
6.0
3.5
3.9
0.5
4.8
4.7
4.9
3.2
-23.3
4.2
5.7
4.3
1.7
19.1
4.2
3.2
4.8
1.1
3.4
5.9
6.8
5.2
4.3
-1.7
4.9
4.6
5.3
.2
.1
.5
.5
.4
.4
-.2
.4
.4
.5
.2
.1
.5
.4
.5
.4
-.3
.3
.3
.3
1.6
-.4
.5
.2
.7
299.4
416.7
294.6
248.3
348.1
7 Finished goods
8 Consumer foods
9 Consumer energy
10 Other consumer goods
11 Capital equipment
2.2
0.8
-3.7
3.9
3.3
1.9
5.3
-6.9
2.6
2.2
-3.2
2.3
-32.3
1.0
2.1
2.6
-.9
12.9
2.2
1.7
2.0
2.5
-1.3
2.7
2.1
1.0
5.4
-9.5
1.2
2.1
.1
.7
.1
-.1
-.1
.3
1.3
-.4
-.2
.4
.2
-.6
-1.1
.3
-.1
.1
.7
-1.0
.2
.2
.6
2.7
-1.2
.2
.1
289.4
272.2
755.4
243.7
291.5
17 Intermediate materials3
13 Excluding energy
-0.6
0.4
2.0
3.0
-3.4
1.5
2.8
2.8
4.0
3.6
2.7
3.3
.4
.3
.5
.2
.1
.3
.1
.3
.0
.2
320.9
299.3
-1.2
1.3
-7.8
10.3
-3.1
14.3
13.3
-9.2
-1.5
-5.8
-5.1
49.1
15.6
-1.7
16.6
12.4
-2.1
3.4
1.7
.3
1.1
.9
-1.0
-.8
.5
.2
1.0
1.5
.2
.6
2.2
-3.6
264.2
786.6
263.8
1 AU items
?
3 Energy items
4 All items less food and energy
5 Commodities
6 Services
PRODUCER PRICES
14
15
16
Crude materials
Foods
Energy
Other
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental equivalence measure of homeownership after 1982.
.4
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds,
SOURCE. Bureau of Labor Statistics.
A50
2.16
D o m e s t i c Nonfinancial Statistics • March 1984
GROSS NATIONAL PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1982
Account
1981
1982
1983
I983r
Q4
Q1
Q2
Q3
Q4'
GROSS NATIONAL PRODUCT
! Tsial
2,954.1
3,073.0
3,310.8
3,109.6
3,171.5
3,272.0
3,362.2
3,437.3
1,857.2
236.1
733.9
887.1
1,991.9
244.5
761.0
986.4
2,157.0
279.1
803.8
1,074.2
2,046.9
252.1
773.0
1,021.8
2,073.0
258.5
777.1
1,037.4
2,147.0
277.7
799.6
1,069.7
2,181.1
282.8
814.8
1,083.5
2,227.0
297.4
823.6
1,106.0
474.9
456.5
352.2
133.4
218.8
104.3
99.8
414.5
439.1
348.3
141.9
206.4
90.8
86.0
470.9
479.6
348.9
131.5
217.4
130.7
125.6
377.4
433.8
337.0
138.6
198.4
96.8
91.2
404.1
443.5
332.1
132.9
199.3
111.3
106.7
450.1
464.6
336.3
127.4
208.8
128.4
123.3
501.1
492.5
351.0
130.9
220.2
141.5
136.3
528.2
517.7
376.2
134.8
241.4
141.5
136.3
18.4
10.9
-24.5
-23.1
-8.7
-3.4
-56.4
-53.7
-39.4
-39.0
-14.5
-10.3
8.5
18.4
10.5
17.4
15 Net exports of goods and services
16 Iixports
17 Imports
26.3
368.8
342.5
17.4
347.6
330.2
-7.1
336.8
344.0
5.6
321.6
316.1
17.0
326.9
309.9
-8.5
327.1
335.6
-18.3
341.1
359.4
-18.7
352.3
371.0
18 Government purchases of goods and services
19 Federal
20 State and local
595.7
229.2
366.5
649.2
258.7
390.5
690.0
275.2
414.8
679.7
279.2
400.5
677.4
273.5
404.0
683.4
273.7
409.7
698.3
278.1
420.2
700.9
275.6
425.3
2,935.6
1,291.8
528.0
763.9
1,374.2
288.0
3,097.5
1,280.8
500.8
780.1
1,511.2
281.0
3,319.5
1,364.1
547.3
816.7
1,637.2
309.6
3,165.9
1,264.8
474.0
790.8
1,560.5
284.3
3,210.9
1,292.2
482.7
809.5
1,588.4
290.9
3,286.6
1,346.8
536.8
810.0
1,623.4
301.9
3,353.7
1,388.9
568.9
820.0
1,651.0
322.3
3,426.9
1,428.3
600.9
827.4
1,685.8
323.2
18.4
3.6
14.8
-24.5
-15.5
-9.1
-8.7
-5.1
-3.6
-56.4
-45.0
-11.4
-39.4
-38.2
-1.2
-14.5
-8.9
-5.7
8.5
13.1
-4.5
10.5
13.6
-3.1
1,513.8
1,485.4
1,535.1
1,480.7
1,490.1
1,525.1
1,553.4
1,571.9
31 Total
2,373.0
2,450.4
2,648.4
2,474.0
2,528.5
2,612.8
2,686.9
n.a.
32 Compensation of employees
1,769.2
1,493.2
284.4
1,208.8
276.0
132.5
143.5
1,865.7
1,568.1
306.0
1,262.1
297.6
140.9
156.6
1,990.2
1,664.1
325.7
1,338.3
326.1
152.7
173.4
1,889.0
1,586.0
314.5
1,271.5
302.9
142.5
160.4
1,923.7
1,610.6
319.2
1,291.5
313.1
148.8
164.3
1,968.7
1,647.1
323.3
1,323.8
321.6
151.5
170.1
2,011.8
1,681.5
328.4
1,353.1
330.3
153.9
176.4
2,056.3
1,717.0
332.1
1,384.9
339.3
156.6
182.7
120.2
89.7
30.5
109.0
87.4
21.5
128.6
107.7
20.9
116.2
90.2
26.0
120.6
98.4
22.2
127.2
106.2
21.0
126.7
111.2
15.5
139.9
114.8
25.1
2
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
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
23
Durable
24
Nondurable
25 Services
26 Structures
27 Change in business inventories
28 Durable goods
29 Nondurable goods
30 MEMO: T o t a l G N P in 1972 d o l l a r s
NATIONAL INCOME
33
Wages and salaries
34
35
36
37
38
Government and government enterprises
Other
Supplement to wages and salaries
Employer contributions for social insurance
Other labor income
39 Proprietors' income1
40 Business and professional1
41 Farm1
42 Rental income of persons2
41.4
49.9
54.8
52.3
54.1
54.8
53.9
56.2
43 Corporate profits1
44 Profits before tax3
45 inventory valuation adjustment
46 Capital consumption adjustment
192.3
227.0
-23.6
-11.0
164.8
174.2
-8.4
-1.1
227.3
205.9
-9.4
30.9
161.9
167.5
-10.3
4.7
181.8
169.7
-1.7
13.9
218.2
203.3
-10.6
25.6
248.4
229.1
-18.3
37.6
-7.1
46.5
47 Net interest
249.9
261.1
247.5
254.7
248.3
243.8
246.1
251.9
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
National Income Accounts
2.17
A51
PERSONAL INCOME A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1983
1982
Account
1983'
1982
1981
Q4
Ql
Q2
Q3
Q4r
PERSONAL INCOME AND SAVING
1 Total personal income
2,435.0
2,578.6
2,742.1
2,632.0
2,657.7
2,713.6
2,761.9
2,835.3
2 Wage and salary disbursements
3 Commodity-producing industries
4
Manufacturing
5 Distributive industries
6 Service industries
7 Government and government enterprises
1,493.2
509.5
385.3
361.6
337.7
284.4
1,568.1
509.2
383.8
378.8
374.1
306.0
1,664.5
529.7
402.8
397.2
411.5
326.2
1,586.0
499.5
377.4
383.5
388.5
314.5
1,610.7
508.6
385.4
386.4
396.4
319.2
1,648.4
522.2
397.4
394.3
407.3
324.6
1,681.9
537.8
409.2
398.9
416.4
328.8
1,717.0
550.0
419.0
409.1
425.9
332.1
143.5
120.2
89.7
30.5
41.4
62.8
341.3
337.2
182.0
156.6
109.0
87.4
21.5
49.9
66.4
366.2
374.6
204.5
173.4
128.6
107.7
20.9
54.8
70.5
366.3
403.6
222.8
160.4
116.2
90.2
26.0
52.3
67.9
363.1
399.0
216.5
164.3
120.6
98.4
22.2
54.1
68.8
357.2
398.5
217.4
170.1
127.2
106.2
21.0
54.8
69.3
357.1
405.3
221.1
176.4
126.7
111.2
15.5
53.9
70.9
369.9
402.6
223.8
182.7
139.9
114.8
25.1
56.2
72.9
381.0
408.1
228.8
8 Other labor income
9 Proprietors' income1
10 Business and professional1
11 Farm1
12 Rental income of persons2
13 Dividends
14 Personal interest income
15s Transfer payments
16 Old-age survivors, disability, and health insurance benefits....
17
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
104.6
112.0
119.5
112.9
116.5
118.6
120.5
122.5
2,435.0
2,578.6
2,742.1
2,632.0
2,657.7
2,713.6
2,761.9
2,835.3
387.4
402.1
406.5
404.1
401.8
412.6
400.1
411.4
20 EQUALS: Disposable personal income
2,047.6
2,176.5
2,335.6
2,227.8
2,255.9
2,301.0
2,361.7
2,424.0
21
LESS: Personal outlays
1,912.4
2,051.1
2,220.9
2,107.0
2,134.2
2,209.5
2,245.9
2,294.0
22 EQUALS: Personal saving
135.3
125.4
114.7
120.8
121.7
91.5
115.8
129.9
6,584.1
4,161.5
4,587.0
6.6
6,399.3
4,179.8
4,567.0
5.8
6,551.9
4,314.6
4,671.0
4.9
6,355.2
4,204.5
4,576.0
5.4
6,381.5
4,225.7
4,599.0
5.4
6,518.0
4,319.1
4,629.0
4.0
6,622.5
4,331.4
4,690.0
4.9
6,685.0
4,381.2
4,769.0
5.4
27 Gross saving
483.8
405.8
438.5
351.3
398.5
420.6
455.4
n.a.
28
29
30
31
509.6
135.3
44.8
-23.6
521.6
125.4
37.0
-8.4
570.2
114.7
78.3
-9.4
526.6
120.8
37.5
-10.3
541.5
121.7
48.9
-1.7
535.0
91.5
70.1
-10.6
587.2
115.8
89.7
-18.3
n.a.
129.9
n.a.
-7.1
33 Noncorporate
34 Wage accruals less disbursements
202.9
126.6
.0
222.0
137.2
.0
231.6
145.6
.0
227.7
140.5
.0
228.3
142.6
.0
229.8
143.5
.0
233.1
148.6
.0
235.0
147.6
.0
35 Government surplus, or deficit (-), national income and
product accounts
36 Federal
37 State and local
-26.9
-62.2
35.3
-115.8
-147.1
31.3
-131.7
-182.8
51.1
-175.3
-208.2
32.9
-142.9
-183.3
40.4
-114.4
-166.1
51.7
-131.8
-187.3
55.5
n.a.
n.a.
n.a.
19
LESS: Personal tax and nontax payments
MEMO
Per capita (1972 dollars)
23 Gross national product
24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
GROSS SAVING
Gross private saving
Personal saving
Undistributed corporate profits1
Corporate inventory valuation adjustment
Capital consumption allowances
1.1
.0
.0
.0
.0
.0
.0
.0
39 Gross investment
478.9
406.2
438.6
355.5
397.4
417.1
457.9
481.9
40 Gross private domestic
41 Net foreign
474.9
4.0
414.5
-8.3
470.9
-32.3
377.4
-21.9
404.1
-6.7
450.1
-33.0
501.1
-43.2
528.2
-46.3
-4.9
.5
.1
4.2
-1.2
-3.5
2.5
2.5
38 Capital grants received by the United States, net
42 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE. Survey of Current Business (Department of Commerce).
A52
3.10
International Statistics • March 1984
U.S. INTERNATIONAL TRANSACTIONS
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
1982
Item credits or debits
1980
1983
1982
1981
Q3
Q4
Ql
Q2
Q3 p
421
4,592
-11,211
-6,596
-8,143
-6,621
-5,546
-3,587
-3,395
-9,655
-8,898
-11,976
-13,996
-25,544
224,237
-249,781
-2,286
29,570
5,738
-28,067
237,019
-265,086
-1,355
33,484
7,462
-36,389
211,217
-247,606
179
27,304
5,729
-13,078
52,241
-65,319
54
6,821
1,349
-11,354
48,344
-59,698
-26
6,008
1,182
-8,810
49,506
-58,316
516
5,089
1,179
-14,661
48,913
-63,574
117
5,700
1,012
-18,169
50,585
-68,754
-21
6,928
1,347
-2,347
-4,709
-2,382
-4,549
-2,621
-5,413
-656
-1,086
-661
-1,770
-608
-953
-636
-1,187
-656
-1,405
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
-5,140
-5,078
-5,732
-2,502
-934
-1,053
-1,162
-1,188
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
-8,155
0
-16
-1,667
-6,472
-5,175
0
-1,823
-2,491
-861
-4,965
0
-1,371
-2,552
-1,041
-794
0
-434
-459
99
-1,949
0
-297
-732
-920
-787
0
-98
-2,139
1,450
16
0
-303
-212
531
529
0
-209
-88
826
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, 3net
21 U.S. direct investments abroad, net
-72,757
-46,838
-3,174
-3,524
-19,221
-100,348
-83,851
-1,181
-5,636
-9,680
-107,348
-109,346
6,976
-7,986
3,008
-22,803
-20,631
998
-3,331
161
-16,670
-17,511
2,337
-3,527
2,031
-19,859
-15,935
-2,374
-1,808
258
488
5,166
-440
-3,222
-1,016
-5,770
-498
n.a.
-1,122
-4,150
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
15,566
9,708
2,187
685
-159
3,145
5,430
4,983
1,289
-28
-3,479
2,665
3,172
5,759
-670
504
-2,054
-367
2,642
4,834
-71
-160
-1,911
-50
1,661
4,346
-556
130
-1,717
-542
49
3,008
-371
-270
-1,939
-379
1,973
1,955
-170
403
611
-826
-3,235
-692
-363
148
-1,870
-458
28 Change in foreign3 private assets in the United States
(increase, +)
29 U.S. bank-reported liabilities
30 U.S. nonbank-reported liabilities
31 Foreign private purchases of U.S. Treasury securities, net
32 Foreign purchases of other U.S. securities, net
33 Foreign direct investments in the United States, net3
39,356
10,743
6,845
2,645
5,457
13,666
75,248
42,154
942
2,982
7,171
21,998
84,693
64,263
-3,104
7,004
6,141
10,390
14,971
10,977
-425
1,364
420
2,635
9,856
2,823
20
2,257
1,975
2,781
16,404
10,588
-2,136
2,912
2,986
2,054
8,984
919
134
3,072
2,628
2,231
21,722
16,344
n.a.
1J03
1,867
2,408
34 Allocation of SDRs
35 Discrepancy
1,152
29,556
1,093
24,238
0
41,390
0
15,082
-1,190
0
14,657
1,042
0
8,833
-212
0
-644
792
0
-82
-1,355
29,556
24,238
41,390
16,272
13,615
9,045
-1,436
1,273
-8,155
-5,175
-4,965
-794
-1,950
-787
16
529
14,881
5,458
2,668
2,802
1,531
319
1,570
-3,383
12,769
13,581
7,420
368
-1,162
-1,397
-3,433
-2,151
756
680
644
267
158
42
30
49
1 Balance on current account
3
4
5
6
7
8
9
10
37
Merchandise trade balance2
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net3
Other service transactions, net
Remittances, pensions, and other transfers
U.S. government grants (excluding military)
Statistical discrepancy in recorded data before seasonal
adjustment
MEMO
Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in the United States
(increase, +)
40 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 22
above)
41 Transfers under military grant programs (excluded from
lines 4, 6, and 10 above)
38
39
1. Seasonal factors are no longer calculated for lines 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
(Department of Commerce).
Trade and Reserve and Official Assets
3.11
A53
U.S. FOREIGN TRADE
Millions of dollars; m o n t h l y d a t a are seasonally a d j u s t e d .
1984
1983
1981
Item
1982
1983
July
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments
233,677
212,193
Aug.
16,486
200,486
16,582
Nov.
Oct.
Sept.
17,257
17,033
Jan.
Dec.
17,063
17,298
18,326
2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded
warehouses
261,305
243,952
258,048
21,828
22,714
22,451
24,333
23,115
22,976
26,586
3 Trade balance
-27,628
-31,759
-57,562
-5,341
-6,132
-5,195
-7,300
-6,052
-5,678
-8,260
not covered in Census statistics, and (2) the exclusion of military sales (which are
combined with other military transactions and reported separately in the "service
account" in table 3.10, line 6). On the import side, additions are made for gold,
ship purchases, imports of electricity from Canada, and other transactions;
military payments are excluded and shown separately as indicated above.
NOTE. The data through 1981 in this table are reported by the Bureau of Census
data of a free-alongside-ship (f.a.s.) value basis—that is, value at the port of
export. Beginning in 1981, foreign trade of the U.S. Virgin Islands is included in
the Census basis trade data; this adjustment has been made for all data shown in
the table. Beginning with 1982 data, the value of imports are on a customs
valuation basis.
The Census basis data differ from merchandise trade data shown in table 3.10,
U.S. International Transactions Summary, for reasons of coverage and timing. On
the export side, the largest adjustments are: (1) the addition of exports to Canada
3.12
SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade"
(Department of Commerce, Bureau of the Census).
U.S. RESERVE ASSETS
Millions of dollars, end of period
1984
1983
Type
1980
1981
1982
Aug.
Sept.
Nov.
Oct.
Dec.
Jan.
Feb.
1 Total
26,756
30,075
33,958
32,624
33,066
33,273
33,655
33,747
33,887
2 Gold stock, including Exchange Stabilization Fund 1
11,160
11,151
11,148
11,128
11,128
11,126
11,123
11,121
11,120
2,610
4,095
5,250
5,543
5,628
5,641
5,735
5,025
5.050
3 Special drawing rights2 3
4 Reserve position in International Monetary Fund 2
2,852
5,055
7,348
9,296
9,399
9,554
9,883
11,312
11,422
10,134
5 Foreign currencies 4 ' 5
9,774
10,212
6,657
6,911
6,952
6,914
6,289
5,050
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus transactions in SDRs.
4. Valued at current market exchange rates.
5. Includes U.S. government securities held under repurchase agreement
against receipt of foreign currencies in 1979 and 1980.
1. Gold held under earmark at Federal Reserve Banks for foreign and international accounts is not included in the gold stock of the United States; see table
3.13. Gold stock is valued at $42.22 per fine troy ounce.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through December 1980, 16 currencies were used; from January
1981, 5 currencies have been used. The U.S. SDR holdings and reserve position in
the IMF also are valued on this basis beginning July 1974.
3.13
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1983
Assets
1980
1981
Aug.
1 Deposits
Assets held in custody
2 U.S. Treasury securities1
3 Earmarked gold2
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
411
505
328
248
297
339
360
190
251
246
102,417
14,965
104,680
14,804
112,544
14,716
113,476
14,693
113,498
14,621
116,327
14,550
116,398
14,475
117,670
14,414
117,076
14,347
119,499
14,291
1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
2. Earmarked gold is valued at $42.22 per fine troy ounce.
1984
1982
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.
A54
3.14
International Statistics • March 1984
FOREIGN BRANCHES OF U.S. B A N K S
Balance Sheet Data
Millions of dollars, e n d of period
1983
June
July
Aug.
Sept.
Oct.'
Nov.
Dec.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 borrowers
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 borrowers
19 Nonbank foreigners
20 Other assets
401,135
462,847
469,432
455,850
452,596
460,261
458,894
463,467
476,158
28,460
20,202
8,258
63,743
43,267
20,476
91,768
61,629
30,139
97,914'
65,920
31,994'
96,963
67,731
29,232
99,484
67,137
32,347
101,356
65,561
35,795
102,497
69,655
32,842
109,511
72,608
36,903
114,889
81,004
33,885
354,960
77,019
146,448
28,033
103,460
378,954
87,821
150,763
28,197
112,173
358,258
91,143
133,640
24,090
109,385
349,809'
88,368'
130,259'
25,370
105,812
340,994
84,872'
123,536'
25,876
106,710
335,036
84,572'
119,288'
25,147
106,029
340,413
89,304'
120,177'
24,982
105,950
337,848
87,543
117,631
25,061
107,613
335,518
89,447
114,495
24,256
107,320
342,651
93,158
117,538
24,450
107,505
465,866
17,715
20,150
19,406
18,143
17,893
18,076
18,492
18,549
18,438
18,618
291,798
350,735
361,712
357,499'
350,507
348,330
354,595
351,483
358,204
370,752
27,191
19,896
7,295
62,142
42,721
19,421
90,048
60,973
29,075
95,637'
64,591
31,046'
94,549
66,303
28,246
96,995
65,711
31,284
98,510
63,716
34,794
99,938
68,126
31,812
107,015
71,086
35,929
112,735
79,866
32,869
255,391
58,541
117,342
23,491
56,017
276,937
69,398
122,110
22,877
62,552
259,646
73,512
106,338
18,374
61,422
251,249'
69,512'
102,836'
18,681
60,220
245,188
67,163'
97,194'
19,108
61,723
241,063
66,609'
93,806'
18,804
61,844
245,541
71,273'
95,113'
18,455
60,700
241,221
69,324
92,048
18,644
61,205
240,768
71,451
90,143
17,752
61,422
247,432
75,348
93,236
17,907
60,941
9,216
11,656
12,018
10,613
10,770
10,272
10,544
10,324
10,421
10,585
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 borrowers
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 borrowers
39 Nonbank foreigners
40 Other assets
144,717
157,229
161,067
155,631
153,209
154,865
156,048
156,803
155,964
158,807
7,509
5,275
2,234
11,823
7,885
3,938
27,354
23,017
4,337
26,279
21,384
4,895
26,012
20,849
5,163
29,722
22,169
7,553
28,947
20,816
8,131
30,853
25,507'
5,346'
32,352
23,959
8,393
34,405
29,111
5,294
131,142
34,760
58,741
6,688
30,953
138,888
41,367
56,315
7,490
33,716
127,734
37,000
50,767
6,240
33,727
123,835
35,787
48,328
6,570
33,150
121,757
35,632
46,643
6,440
33,042
119,672
35,555
44,303
6,342
33,472
121,518
36,382
45,451
6,274
33,411
120,660
36,556
43,888
6,280
33,936
118,275
35,642
42,683
6,307
33,643
119,398
36,565
43,362
5,988
33,483
6,066
6,518
5,979
5,517
5,440
5,471
5,583
5,290
5,337
5,004
99,699
115,188
123,740
118,023
116,526
119,377
121,238
121,817
121,744
126,087
7,116
5,229
1,887
11,246
7,721
3,525
26,761
22,756
4,005
25,536
21,017
4,519
25,180
20,434
4,746
28,905
21,720
7,185
27,837
20,036
7,801
30,095
25,084'
5,011'
31,671
23,624
8,047
33,728
28,756
4,972
89,723
28,268
42,073
4,911
14,471
99,850
35,439
40,703
5,595
18,113
92,228
31,648
36,717
4,329
19,534
88,587
30,025
34,417
4,547
19,598
87,450
30,122
33,159
4,420
19,749
86,868
30,053
31,718
4,410
20,687
89,530
31,409
33,237
4,329
20,555
88,253
31,414
31,796
4,346
20,697
86,614
30,371
31,158
4,377
20,708
89,035
31,838
32,198
4,284
20,715
2,860
4,092
4,751
3,900
3,896
3,604
3,871
3,469
3,459
3,324
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 borrowers
49 Nonbank foreigners
50 Other assets
51 Total payable in U.S. dollars
123,837
149,108
145,156
146,886
142,432
139,699
143,148
141,311
147,257
151,463
17,751
12,631
5,120
46,546
31,643
14,903
59,403
34,653
24,750
66,575
40,591
25,984'
66,032
42,946
23,086
63,923
40,308
23,615
66,547
40,152
26,395
66,253
40,105
26,148
71,363
44,414
26,949
74,689
47,703
26,986
101,926
13,342
54,861
12,577
21,146
98,057
12,951
55,151
10,010
19,945
81,450
18,720
42,699
6,413
13,618
76,709'
16,674'
41,681'
5,935
12,419
72,683
15,568'
37,381'
6,538
13,196
72,021
15,354'
37,350'
6,404
12,913
72,826
16,789'
36,609'
6,461
12,967
71,268
15,817'
35,964'
6,643'
12,844'
71,995
17,993
35,353
5,890
12,759
72,827
17,343
36,764
6,084
12,636
4,160
4,505
4,303
3,602
3,717
3,755
3,775
117,654
143,743
139,605
140,796
136,301
133,233
136,851
3,790
134,684'
3,899
3,947
140,841
144,969
Overseas Branches
3.14
A55
Continued
1983
June
July
Aug.
Sept.
Oct.
Nov.
Dec.?
All foreign countries
52 Total, all currencies
51 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
401,135
462,847
469,432
465,866
455,850
452,596
460,261
458,894
463,467
476,158
91,079
39,286
14,473
37,275
137,767
56,344
19,197
62,226
178,918
75,561
33,368
69,989
191,579
84,576
33,672
73,331
187,713
81,752
31,489'
74,472'
183,864
77,556
29,880
76,428
182,664'
78,027'
30,982
73,655
185,599
85,057
27,075
73,467
184,257
79,591
26,237
78,429
187,247
80,276
29,141
77,830
295,411
75,773
132,116
32,473
55,049
305,630
86,396
124,906
25,997
68,331
270,678
90,148
96,739
19,614
64,177
256,102
86,559'
87,140'
18,621
63,782
249,823
83,911
84,649
18,287
62,976
250,563
82,871
85,433
17,830
64,429
259,449'
88,055'
86,55C
20,513
64,331
254,634
85,566
84,533
19,403
65,132
260,280
88,346
88,023
18,377
65,534
269,768
91,335
92,903
18,801
66,729
14,690
19,450
19,836
18,185
18,314
18,169
18,148
18,661
18,930
19,143
368,650
365,583
373,060
369,935
374,425
387,571
303,281
364,447
379,003
376,149
88,157
37,528
14,203
36,426
134,700
54,492
18,883
61,325
175,431
73,235
33,003
69,193
188,081
82,379
33,242
72,460
184,215
79,496
31,115'
73,604'
180,173
75,244
29,334
75,595
178,889'
75,742'
30,415
72,732
181,692
82,660
26,548
72,484
180,260
77,126
25,763
77,371
183,520
78,046
28,623
76,851
206,883
58,172
87,497
24,697
36,517
217,602
69,299
79,594
20,288
48,421
192,348
72,878
57,355
15,055
47,060
178,877
68,369'
49,903'
13,912
46,693
174,836
67,228
48,062
13,517
46,029
175,616
65,679
49,522
13,029
47,386
184,354'
70,649'
50,862'
15,400
47,443
178,895
68,064
48,264
14,630
47,937
184,223
71,011
52,072
13,453
47,687
194,326
74,062
57,116
13,852
49,296
8,241
12,145
11,224
9,191
9,599
9,794
9,817
9,348
9,942
9,725
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
144,717
157,229
161,067
155,631
153,209
154,865
156,048
156,803
155,964
158,807
21,785
4,225
5,716
11,844
38,022
5,444
7,502
25,076
53,954
13,091
12,205
28,658
56,952
14,461
13,503
28,988
56,959
15,011
12,993
28,955
58,347
16,145
12,462
29,740
56,924
16,852
12,174
27,898
60,903
21,385
10,751
28,767
57,095
17,312
10,176
29,607
55,799
14,021
11,328
30,450
117,438
15,384
56,262
21,412
24,380
112,255
16,545
51,336
16,517
27,857
99,567
18,361
44,020
11,504
25,682
91,545
18,376
38,238
10,848
24,083
89,198
17,544
37,192
10,146
24,316
89,458
17,595
37,571
9,588
24,704
92,122
19,365
37,122
11,448
24,187
88,727
18,288
35,847
10,611
23,981
91,714
18,841
38,888
10,071
23,914
95,944
19,045
41,714
10,151
25,034
5,494
6,952
7,546
7,134
7,052
7,060
7,002
7,173
7,155
7,064
124,760
123,265
125,656
127,868
128,600
127,234
131,242
103,440
120,277
130,261
86 To United States
87 Parent bank
88 Other banks in United States
89 Nonbanks
21,080
4,078
5,626
11,376
37,332
5,350
7,249
24,733
53,029
12,814
12,026
28,189
56,092
14,308
13,313
28,471
56,081
14,812
12,833
28,436
57,359
15,829
12,223
29,307
55,931
16,673
11,886
27,372
59,824
21,145
10,523
28,156
55,907
17,094
9,880
28,933
54,691
13,839
11,044
29,808
90 To foreigners
91 Other branches of parent bank
92 Banks
93 Official institutions
94 Nonbank foreigners
79,636
10,474
35,388
17,024
16,750
79,034
12,048
32,298
13,612
21,076
73,477
14,300
28,810
9,668
20,699
65,428
14,117
23,895
8,786
18,630
63,818
13,386
23,453
8,065
18,914
64,801
13,421
24,447
7,630
19,303
68,252
15,166
24,478
9,381
19,227
65,347
14,542
23,136
8,742
18,927
68,011
15,044
26,343
8,029
18,595
73,376
15,410
29,410
8,279
20,277
2,724
3,911
3,755
3,240
3,366
3,4%
3,685
3,429
3,316
3,175
85 Total payable in U.S. dollars
95 Other liabilities
Bahamas and Caymans
123,837
149,108
145,156
146,886
142,432
139,699
143,148
141,311
147,257
151,463
97 To United States
98 Parent bank
99 Other banks in United States
100 Nonbanks
59,666
28,181
7,379
24,106
85,759
39,451
10,474
35,834
104,425
47,081
18,466
38,878
111,725
53,720
16,921
41,084
108,623
50,777
15,494'
42,352'
104,470
46,491
14,560
43,419
104,666
45,493
16,191
42,982
104,198
48,264
14,303
41,631
106,688
46,693
14,090
45,905
110,731
50,207
15,677
44,847
101 To foreigners
102 Other branches of parent bank
103 Banks
104 Official institutions
105 Nonbank foreigners
61,218
17,040
29,895
4,361
9,922
60,012
20,641
23,202
3,498
12,671
38,274
15,796
10,166
1,967
10,345
33,088
11,835'
9,011'
1,796
10,446
31,560
12,262
8,012
2,101
9,185
32,875
12,778
8,737
2,170
9,190
36,163
14,698'
9,506'
2,237
9,722
34,734
14,196
9,059
1,976
9,503
38,109
17,075
9,618
1,624
9,792
38,397
15,123
11,882
1,916
9,476
2,953
3,337
2,457
2,073
2,249
2,354
2,319
2,379
2,460
2,335
119,657
145,284
141,908
143,596
139,246
136,227
139,854
137,513
143,603
147,657
% Total, all currencies
106 Other liabilities
107 Total payable in U.S. dollars
A56
3.15
International Statistics • March 1984
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1983
Item
1981
1984
1982
July
1 Total1
2
3
4
5
6
7
8
9
10
11
12
Sept.
Oct.
Nov/
Dec.
Jan.?
169,735
By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries6
172,718
175,576
172,799
171,550
173,272
173,915
178,185
176,293
26,737
52,389
24,989
46,658
21,372
53,484
22,239
50,965
21,914
50,374
22,057
51,618
22,816
52,558
25,545
54,341
22,684
55,327
53,186
11,791
25,632
67,733
8,750
24,588
70,180
7,950
22,590
69,295
7,950
22,350
69,300
7,950
22,012
69,769
7,950
21,878
68,995
7,250
22,296
68,742
7,250
22,307
69,260
7,250
21,772
65,699
2,403
6,953
91,607
1,829
1,244
By type
Liabilities reported by banks in the United States2
U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
Marketable
Nonmarketable 4
U.S. securities other than U.S. Treasury securities5
61,298
2,070
6,057
96,034
1,350
5,909
66,365
2,879
5,421
94,384
1,138
5,389
64,427
2,755
5,676
93,183
1,173
5,585
63,845
2,712
5,501
92,876
1,196
5,420
64,835
2,816
5,629
92,415
1,023
6,554
65,588
2,670
6,468
91,566
798
6,825
67,608
2,443
6,390
92,697
958
8,089
66,084
2,516
6,353
92,444
1,051
7,845
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
Aug.
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
NOTE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States.
LIABILITIES TO A N D CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1983
Item
1980
1981
1982
Mar.
1 Banks' own liabilities
2 Banks' own claims
3 Deposits
4 Other claims
5 Claims of banks' domestic customers 1
1. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the accounts
of their domestic customers.
3,748
4,206
2,507
1,699
962
3,523
4,980
3,398
1,582
971
4,844
7,707
4,251
3,456
676
5,075
8,097
3,725
4,372
637
June
5,867
7,851
3,911
3,940
684
Sept.
5,943
7,919
3,063
4,856
717
Dec.''
4,772
7,270
2,852
4,418
1,059
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
A57
Reported by Banks in the United States
Millions of dollars, end of period
1984
1983
Holder and type of liability
1980
1981A
1982
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan .P
1 All foreigners
205,297
243,889
307,056
327,300
334,931
337,910
337,766
351,499'
372,051
359,673
2, Banks' own liabilities
3 Demand deposits
4 Time deposits'
Other 2
6 Own foreign offices3
124,791
23,462
15,076
17,583
68,670
163,817
19,631
29,039
17,647
97,500
227,089
15,889
68,035
23,946
119,219
239,444
15,595
74,721
21,932
127,195
248,250
15,672
77,888
23,905
130,785
251,421
16,375
81,091
24,956
129,000
248,888
17,094
80,468
22,565
128,760
262,343'
17,198'
84,308'
23,149'
137,688'
281,628
17,594
90,019
26,124
147,892
265,815
16,083
87,785
23,168
138,778
80,506
57,595
80,072
55,315
79,967
55,628
87,856
65,237
86,682
63,939
86,488
64,062
88,878
65,735
89,156
66,746
90,422
68,669
93,858
71,083
20,079
2,832
18,788
5,970
20,636
3,702
17,986
4,634
17,977
4,765
17,292
5,135
17,182
5,961
17,721
4,690
17,502
4,252
17,911
4,865
2,344
2,721
4,922
5,678
5,555
5,308
4,619
6,321
5,779
4,759
444
146
85
212
638
262
58
318
1,909
106
1,664
139
4,030
307
3,010
713
3,433
325
2,507
601
3,024
252
2,168
605
3,294
452
2,487
355
4,897
437
4,079
381
4,453
297
3,707
449
2,867
271
2,235
361
1,900
254
2,083
541
3,013
1,621
1,648
678
2,121
1,294
2,284
1,442
1,325
441
1,424
484
1,325
463
1,892
1,045
1,646
0
1,542
0
1,392
0
970
0
828
0
842
0
884
0
939
0
862
0
847
0
20 Official institutions8
86,624
79,126
71,647
74,856
73,205
72,289
73,675
75,374
79,886
78,011
21 Banks' own liabilities
22 Demand deposits
23 Time deposits'
24 Other2
17,826
3,771
3,612
10,443
17,109
2,564
4,230
10,315
16,640
1,899
5,528
9,212
15,204
1,774
6,196
7,234
16,014
1,685
5,990
8,340
16,147
1,930
6,185
8,033
16,532
1,818
6,657
8,057
16,673
2,023
6,709
7,940
19,438
1,837
7,417
10,184
16,554
1,823
7,282
7,449
25 Banks' custody liabilities4
26 U.S. Treasury bills and certificates5
27 Other negotiable and readily transferable
instruments 6
28 Other
68,798
56,243
62,018
52,389
55,008
46,658
59,652
53,484
57,191
50,965
56,142
50,374
57,144
51,618
58,701
52,558
60,448
54,341
61,457
55,327
12,501
54
9,581
47
8,321
28
6,139
29
6,186
39
5,735
32
5,489
36
6,115
28
6,082
25
6,107
23
29 Banks9
96,415
136,008
185,881
195,302
203,153
205,879
203,637
214,169'
229,550
219,092
30 Banks' own liabilities
31 Unaffiliated foreign banks
32
Demand deposits
33
Time deposits'
34
Other2
35 Own foreign offices3
90,456
21,786
14,188
1,703
5,895
68,670
124,312
26,812
11,614
8,720
6,477
97,500
169,449
50,230
8,675
28,386
13,169
119,219
175,174
47,978
8,074
26,558
13,346
127,195
182,700
51,914
8,302
29,300
14,312
130,785
184,811
55,811
8,618
31,468
15,725
129,000
181,696
52,936
9,102
30,329
13,505
128,760
192,731'
55,043
8,770
32,265
14,008
137,688'
208,011
60,119
8,756
36,735
14,628
147,892
196,514
57,736
8,129
34,980
14,628
138,778
5,959
623
11,696
1,685
16,432
5,809
20,128
8,608
20,454
9,028
21,069
9,440
21,941
10,036
21,438
9,967
21,540
10,178
22,577
10,776
2,748
2,588
4,400
5,611
7,857
2,766
7,821
3,699
7,581
3,845
7,553
4,075
7,542
4,363
7,251
4,221
7,485
3,877
7,414
4,387
7 Banks' custody liabilities4
8
U.S. Treasury bills and certificates5
9 Other negotiable and readily transferable
instruments 6
10 Other
11 Nonmonetary international and regional
organizations7
12 Banks' own liabilities
13 Demand deposits
14 Time deposits'
15 Other2
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
40 Other foreigners
19,914
26,035
44,606
51,464
53,018
54,433
55,834
55,635'
56,836
57,811
41 Banks' own liabilities
42 Demand deposits
43 Time deposits
44 Other 2
16,065
5,356
9,676
1,033
21,759
5,191
16,030
537
39,092
5,209
32,457
1,426
45,037
5,439
38,958
640
46,103
5,360
40,091
652
47,439
5,575
41,270
594
47,366
5,723
40,995
648
48,042'
5,968
41,255'
819'
49,726
6,703
42,161
863
49,879
5,860
43,289
730
3,849
474
4,276
699
5,514
1,540
6,428
2,466
6,916
2,652
6,995
2,805
8,468
3,640
7,593
3.737
7,109
3,686
7,932
3,935
3,185
190
3,265
312
3,065
908
3,055
906
3,383
881
3,162
1,028
3,267
1,562
3,415
441
3,073
350
3,542
455
10,745
10,747
14,307
10,941
10,720
10,336
9,995
10,385
10,381
10,273
45 Banks' custody liabilities4
46 U.S. Treasury bills and certificates
47 Other negotiable6 and readily transferable
instruments
48 Other
49 MEMO: Negotiable time certificates of
deposit in custody for foreigners
1. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due to head office or parent foreign bank, and
foreign branches, agencies or wholly owned subsidiaries of head office or parent
foreign bank.
4. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
5. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments, and the Bank for
International Settlements.
9. Excludes central banks, which are included in "Official institutions."
• Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
A58
3.17
International Statistics • March 1984
Continued
1983
Area and country
1980
1981A
1984
1982
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.P
1 Total
205,297
243,889
307,056
327,300
334,931
337,910
337,766
351,499'
372,051
359,673
2 Foreign countries
202,953
241,168
302,134
321,622
329,377
332,601
333,147
345,178'
366,272
354,913
90,897
523
4,019
497
455
12,125
9,973
670
7,572
2,441
1,344
374
1,500
1,737
16,689
242
22,680
681
6,939
68
370
91,275
596
4,117
333
296
8,486
7,645
463
7,267
2,823
1,457
354
916
1,545
18,716
518
28,286
375
6,541
49
493
117,756
519
2,517
509
748
8,171
5,351
537
5,626
3,362
1,567
388
1,405
1,390
29,066
296
48,172
499
7,006
50
576
118,881
610
2,960
612
292
8,850
3,710
588
7,790
3,415
900
338
1,694
1,407
29,972
224
48,080
427
6,514
45
453
123,607
556
3,116
573
459
8,488
3,537
636
7,277
3,633
1,044
315
1,585
1,204
29,877
315
53,768
462
6,347
31
384
125,850
659
2,795
593
373
8,827
3,438
604
6,931
3,892
1,457
302
1,678
1,337
29,938
333
55,602
506
6,038
23
525
126,694
570
2,853
544
372
8,638
4,307
595
7,703
3,735
1,072
297
1,592
1,489
30,725
277
54,746
464
6,102
37
576
130,091'
641
2,465
538
375
8,083
4,337
544
7,819
3,701
1,531
306
1,534
1,652
30,482
319
58,007'
552
6,660
27
518
137,755
585
2,709
466
531
9,436
3,588
520
8,459
4,290
1,673
373
1,602
1,799
32,177
467
60,413
562
7,433
65
607
134,897
745
2,979
372
298
8,209
3,817
511
7,622
4,008
1,480
377
1,644
1,845
32,014
334
61,714
506
5,876
62
486
3 Europe
4 Austria
5 Belgium-Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21 Other Western Europe 1
22 U.S.S.R
23 Other Eastern Europe 2
24 Canada
10,031
10,250
12,232
16,838
17,918
16,470
16,325
16,349
16,025
16,233
25 Latin America and Caribbean
26 Argentina
27 Bahamas
28 Bermuda
29 Brazil
30 British West Indies
31 Chile
32 Colombia
33 Cuba
34 Ecuador
35 Guatemala
36 Jamaica
37 Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41 Uruguay
42 Venezuela
43 Other Latin America and Caribbean
53,170
2,132
16,381
670
1,216
12,766
460
3,077
6
371
367
97
4,547
413
4,718
403
254
3,170
2,123
85,223
2,445
34,856
765
1,568
17,794
664
2,993
9
434
479
87
7,235
3,182
4,857
694
367
4,245
2,548
114,163
3,578
44,744
1,572
2,014
26,381
1,626
2,594
9
455
670
126
8,377
3,597
4,805
1,147
759
8,417
3,291
124,449
5,017
54,506
2,363
2,704
24,337
1,385
1,618
11
532
697
108
9,142
3,434
5,608
1,055
960
7,715
3,257
126,631
4,249
51,992
2,849
3,046
26,967
1,472
1,674
12
601
718
106
9,445
3,486
5,934
1,129
1,033
8,587
3,331
127,077
4,148
49,859
2,833
3,406
28,442
1,613
1,611
10
670
758
109
9,697
3,581
6,079
1,203
1,116
8,382
3,561
127,237
4,018
51,180
2,632
3,818
27,410
1,697
1,617
10
825
750
105
9,449
3,858
5,902
1,049
1,202
8,202
3,513
135,056'
4,377
53,551
2,582
4,150'
31,695'
1,783
1,645
10
1,003
766
234
9,463'
3,941
5,944'
1,090'
1,173'
8,024'
3,626
143,263
4,011
56,546
2,333
3,364
36,738
1,842
1,689
8
1,047
788
140
10,196
3,868
6,102
1,166
1,226
8,598
3,600
136,440
4,301
53,479
2,745
2,989
32,368
1,811
1,583
11
826
780
113
10,839
3,730
5,575
1,127
1,277
9,311
3,575
44 Asia
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle-East oil-exporting countries 3
Other Asia
42,420
49,822
48,716
53,068
52,649
54,583
53,370
54,121'
58,376
56,456
49
1,662
2,548
416
730
883
16,281
1.528
919
464
14,453
2,487
158
2,082
3,950
385
640
592
20,750
2,013
874
534
12,992
4,853
203
2,761
4,465
433
857
606
16,078
1,692
770
629
13,433
6,789
192
3,913
5,581
606
1,245
676
17,655
1,552
770
537
11,875
8,467
176
4,086
5,614
528
839
823
16,922
1,553
933
531
11,764
8,877
190
3,852
6,582
712
622
848
17,418
1,478
1,181
581
12,661
8,458
216
3,992
6,507
830
871
812
17,103
1,353
747
522
12,410
8,007
183'
4,063
6,971'
725
661
808
17,138'
1.591
1,012
569
12,492
7,907
249
3,997
6,610
464
997
1,722
18,103
1,648
1,234
716
12,959
9,679
249
4,309
6,345
670
1,092
856
17,243
1,614
1,232
776
12,464
9,606
57 Africa
58 Egypt
59 Morocco
60 South Africa
61 Zaire
62 Oil-exporting countries 4
63 Other Africa
5,187
485
33
288
57
3,540
783
3,180
360
32
420
26
1,395
946
3,124
432
81
292
23
1,280
1,016
2,916
554
57
403
55
928
919
2,853
465
48
452
29
934
926
3,132
488
84
520
34
963
1,042
2,845
576
73
394
43
736
1,023
2,694
589
96
389
32
679
909
2,799
645
84
449
87
620
914
2,915
569
109
486
61
869
821
64 Other countries
65 Australia
66 All other
1,247
950
297
1,419
1,223
196
6,143
5,904
239
5,469
5,250
219
5,719
5,512
208
5,490
5,284
206
6,675
6,461
214
6,868
6,666
202
8,054
7,857
197
7,972
7,735
237
67 Nonmonetary international and regional
organizations
International
Latin American regional
Other regional5
2,344
1,157
890
296
2,721
1,661
710
350
4,922
4,049
517
357
5,678
4,987
454
237
5,555
4,861
441
252
5,308
4,674
445
189
4,619
3,944
437
238
6,321
5,556
415
350
5,779
5,095
419
265
4,759
4,174
433
152
45
46
47
48
49
50
51
52
53
54
55
56
68
69
70
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Truciai States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."
• Liabilities and claims of banks in the United States were increased, beginning
in December 1981, by the shift from foreign branches to international banking
facilities in the United States of liabilities to, and claims on, foreign residents.
Nonbank-Reported
3.18
Data
A59
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, e n d of period
1983
Area and country
1980
1981A
1982
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
367,281
372,387
375,536
372,790
376,937
384,394
1 Total
172,592
251,589
355,705
373,887
2 Foreign countries
172,514
251,533
355,636
373,444
366,945
372,068
374,939
372,730
376,867
384,230
85,584
49,262
121
229
5,138
2,849
554
187
546
990
4,127
7,251
1,876
940
452
333
7,560
5,240
1,425
682
384
572
950
529 (
3,744
2,095
1,205
3,038
1,639
2,213
560
424
23,849
45,781
1,430
1,225
211
368
377
263
1,762
1,725
86,827
342
5,803
1,098
870
7,942
1,404
574
7,335
1,165
652
849
3,207
2,859
1,603
570
46,689
1,464
334
373
1,692
84,882
383
5,471
1,096
724
7,953
1,112
458
7,406
967
598
844
3,345
2,910
1,727
629
45,664
1,381
358
288
1,566
87,996
338
5,898
1,124
637
8,589
1,168
375
7,412
1,048
634
848
3,373
2,836
1,630
594
47,863
1,351
406
232
1,640
90,522
351
5,650
1,131
697
7,869
1,428
408
7,038
1,189
550
861
3,389
3,081
1,765
616
50,780
1,369
529
215
1,606
88,718
334
5,503
1,103
789
7,390
1,095
369
7,686
1,071
575
893
3,128
3,059
1,579
660
49,841
1,468
394
206
1,575
89,570
395
5,548
1,272
822
7,885
1,256
412
8,432
1,390
590
891
3,634
3,252
2,112
693
47,198
1,582
428
176
1,601
89,525
397
5,460
1,213
989
8,564
1,234
476
9,175
1,231
684
932
3,527
3,232
1,834
798
45,774
1,692
462
245
1,604
3 Europe
4 Austria
5 Belgium-Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
17 Netherlands
n
Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21 Other Western Europe1
22 U.S.S.R
23 Other Eastern Europe 2
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
4,810
9,193
13,678
16,694
16,517
17,501
16,525
15,885
16,390
16,223
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 Guatemala3
36 Jamaica3
37 Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41
Uruguay
42 Venezuela
43 Other Latin America and Caribbean
92,992
5,689
29,419
218
10,496
15,663
1,951
1,752
3
1,190
137
36
12,595
821
4,974
890
137
5,438
1,583
138,347
7,527
43,542
346
16,926
21,981
3,690
2,018
3
1,531
124
62
22,439
1,076
6,794
1,218
157
7,069
1,844
187,969
10,974
56,649
603
23,271
29,101
5,513
3,211
3
2,062
124
181
29,552
839
10,210
2,357
686
10,643
1,991
199,102
11,243
61,820
447
23,359
32,738
5,161
3,601
0
2,038
90
207
32,426
522
8,840
2,627
820
11,036
2,129
195,289
11,112
58,836
342
23,742
30,432
5,188
3,656
0
2,018
96
209
32,962
943
9,177
2,506
833
11,121
2,115
195,281
11,334
54,687
390
24,231
32,266
5,404
3,592
0
2,014
100
204
33,689
838
10,093
2,421
820
11,045
2,152
194,391
11,444
55,009
578
24,282
30,877
5,792
3,665
0
2,020
112
214
33,740
897
9,189
2,470
857
11,037
2,209
195,109
11,618
56,220
489
24,202
30,796
5,740
3,648
3
2,154
115
203
33,521
988
8,835
2,434
883
10,881
2,379
200,423
11,899
58,919
559
24,573
32,139
5,860
3,734
0
2,262
122
210
33,728
1,164
8,336
2,469
903
11,088
2,457
204,687
11,823
59,885
568
24,442
35,180
6,060
3,826
0
2,336
133
209
34,514
1,064
7,570
2,537
964
11,193
2,383
44
39,078
49,851
60,952
62,812
62,069
62,585
64,751
63,772
61,154
64,485
179
1,644
8,022
275
635
1,648
27,438
9,696
2,540
735
4,654
5,119
227
1,829
8,704
259
688
1,726
28,563
9,634
2,777
806
4,142
5,395
295
1,618
8,287
324
697
1,780
28,239
9,314
2,369
831
4,630
5,388
249
1,572
8,782
305
711
1,817
25,773
9,624
2,427
867
4,236
4,791
292
1,720
7,925
302
501
1,780
29,062
9,516
2,056
974
4,979
5,379
24 Canada
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East oil-exporting countries4
Other Asia
195
2,469
2,247
142
245
1,172
21,361
5,697
989
876
1,432
2,252
107
2,461
4,132
123
352
1,567
26,797
7,340
1,819
565
1,581
3,009
214
2,288
6,787
222
348
2,029
28,379
9,387
2,625
643
3,087
4,943
166
1,760
7,917
230
544
2,181
27,611
9,129
2,820
788
4,461
5,207
124
1,715
8,096
245
595
1,657
27,876
9,639
2,630
689
4,003
4,800
57 Africa
58 Egypt
59 Morocco
60 South Africa
61 Zaire
62 Oil-exporting countries5
63 Other
2,377
151
223
370
94
805
734
3,503
238
284
1,011
112
657
1,201
5,346
322
353
2,012
57
801
1,802
5,665
450
463
2,231
46
830
1,645
5,940
486
484
2,407
45
850
1,668
6,527
529
444
2,630
40
1,052
1,832
6,482
596
444
2,719
38
964
1,722
6,889
623
462
2,582
38
1,481
1,703
6,808
670
461
2,892
37
1,039
1,709
6,676
683
446
2,650
33
1,101
1,764
64 Other countries
65 Australia
66 All other
1,150
859
290
1,376
1,203
172
2,107
1,713
394
2,343
1,724
620
2,248
1,635
613
2,178
1,637
542
2,267
1,675
593
2,357
1,692
664
2,522
1,899
624
2,633
2,078
555
78
56
68
443
336
319
598
60
70
164
45
46
47
48
49
50
51
57
53
54
55
56
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 before April 1978 include claims of banks' domestic
customers on foreigners.
• Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
A60
3.19
International Statistics • March 1984
BANKS' OWN A N D DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period
1983
Type of claim
1980
1981A
1982
June
July
Aug.
367,281
50,337
135,840
117,955
46,368
71,588
63,148
372,387
52,009
137,166
120,732
47,345
73,386
62,480
Sept.
Oct.
Nov.
372,790
54,770
141,971
114,390
44,613
69,777
61,658
376,937
56,007
139,759
118,180
44,533
73,647
62,991
Dec.
I Total
198,698
287,557
396,015
409,592
2
3
4
5
6
7
8
172,592
20,882
65,084
50,168
8,254
41,914
36,459
251,589
31,260
96,653
74,704
23,381
51,322
48,972
355,705
45,422
127,293
121,377
44,223
77,153
61,614
373,887
49,964
140,233
121,091
47,167
73,924
62,599
26,106
885
35,968
1,378
40,310
2,491
35,705
2,631
36,102
2,654
33,076
3,172
15,574
26,352
30,763
26,937
27,550
24,037
9,648
8,238
7,056
6,137
5,898
5,867
22,714
29,952
38,153
34,901
34,585
37,328
24,468
40,306
41,702
41,162
Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices1
Unaffiliated foreign banks
Deposits
Other
All other foreigners
9 Claims of banks' domestic customers 2
10 Deposits
11 Negotiable and readily transferable
instruments 3
12 Outstanding collections and other
claims
13 MEMO: Customer liability on
acceptances
Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 4 . . .
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
411,639
41,443
41,899
375,536
53,699
137,382
121,900
48,179
73,721
62,556
41,652
424,266
44,189
46,520
391,190
57,697
146,755
123,062
46,366
76,696
63,676
n.a.
4. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see July 1979 BULLETIN
p. 550.
• Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
NOTE. Beginning April 1978, data for banks' own claims are given on a monthly
basis, but the data for claims of banks' own domestic customers are available on a
quarterly basis only.
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1982
Maturity; by borrower and area
Mar.
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
By borrower
Maturity of 1 year or less1
Foreign public borrowers . . . .
All other foreigners
Maturity of over 1 year 1
Foreign public b o r r o w e r s . . . .
All other foreigners
By area
Maturity of 1 year or less1
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other2
Maturity of over 1 year1
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other2
1. Remaining time to maturity.
2. Includes nonmonetary international and regional organizations.
June
Sept.
106,748
154,590
228,150
230,112
232,126
233,676
240,860
82,555
9,974
72,581
24,193
10,152
14,041
116,394
15,142
101,252
38,197
15,589
173,917
21,256
152,661
54,233
23,137
31,095
174,152
21,768
151,384
55,960
24,859
31,100
174,570
23,030
151,541
57,556
31,349
174,629
25,519
149,111
59,046
27,077
31,970
174,086
24,000
150,086
66,774
32,667
34,107
18,715
2,723
32,034
28,130
4,662
48,717
31,485
2,457
943
50,500
7,642
73,291
37,578
3,680
54,109
1,226
75,122
32,753
3,872
1,435
52,039
7,055
74,768
35,327
3,854
1,527
52,665
6,443
76,031
33,442
4,657
1,391
54,677
5,986
73,802
34,004
4,201
1,416
8,100
1,808
11,636
1,931
35,247
3,185
1,494
740
11,986
1,924
35,842
3,573
1,485
1,150
12,238
11,613
1,756
38,254
4,581
1,734
13,009
1,857
43,583
4,850
1,108
1,188
26,686
1,757
640
5,118
1,448
15,075
1,865
507
179
22,608
25,209
1,907
900
272
6,861
26,206
1,861
36,671
4,053
1,667
1,066
2,286
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.
Nonbank-Reported
3.21
Data
A61
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks 1
Billions of dollars, end of period
1981
Area or country
1979
1982
1983
1980
Dec.
Mar.
June
Sept.
Dec.
Mar.
June'
Sept.'
Dec.P
303.9
352.0
415.2
419.6
435.3r
438.2'
438.6'
440.6'
436.5
425.5
435.7
138.4
11.1
11.7
12.2
6.4
4.8
2.4
4.7
56.4
6.3
22.4
162.1
13.0
14.1
12.1
8.2
4.4
2.9
5.0
67.4
8.4
26.5
175.5
13.3
15.3
12.9
9.6
4.0
3.7
5.5
70.1
10.9
30.2
174.5
13.2
16.0
12.5
9.0
4.0
4.1
5.3
70.3
11.6
28.5
176.3'
14.1
16.5
12.7
9.0
4.1
4.0
5.1
69.4'
11.4
29.9
175.4'
13.6
15.8
12.2
9.7
3.8
4.7
5.1
70.3'
11.0
29.3
179.7'
13.1
17.1
12.7
10.3
3.6
5.0
5.0
72.1'
10.4
30.2'
182.1'
13.7
17.1
13.4
10.2
4.3
4.3
4.6
72.9'
12.4
29.2'
176.7
13.3
17.1
12.6
10.5
4.0
4.7
4.8
70.2
10.8
28.7
167.8
12.6
16.2
11.6
9.9
3.6
4.9
4.2
67.0
9.0
28.9
167.1
12.4
16.3
11.4
11.7
3.5
5.1
4.3
64.1
8.3
30.0
13 Other developed countries
14 Austria
15 Denmark
16 Finland
17 Greece
18 Norway
19 Portugal
20 Spain
21 Turkey
22 Other Western Europe
23 South Africa
24 Australia
19.9
2.0
2.2
1.2
2.4
2.3
.7
3.5
1.4
1.4
1.3
1.3
21.6
1.9
2.3
1.4
2.8
2.6
.6
4.4
1.5
1.7
1.1
1.3
28.4
1.9
2.3
1.7
2.8
3.1
1.1
6.6
1.4
2.1
2.8
2.5
30.7
2.1
2.5
1.6
2.9
3.2
1.2
7.2
1.6
2.1
3.3
3.0
32.1
2.1
2.6
1.6
2.7
3.2
1.5
7.3
1.5
2.2
3.5
4.0
32.7
2.0
2.5
1.8
2.6
3.4
1.6
7.7
1.5
2.1
3.6
4.0
33.7
1.9
2.4
2.2
3.0
3.3
1.5
7.5
1.4
2.3
3.7
4.4
33.9
2.1
3.3
2.1
2.9
3.3
1.4
7.0
1.5
2.2
3.6
4.6
34.4
2.1
3.4
2.1
2.9
3.4
1.4
7.2
1.4
2.0
3.9
4.5
34.1
1.9
3.3
1.8
2.9
3.2
1.3
7.1
1.5
2.1
4.7
4.4
36.0
1.9
3.5
2.4
2.8
3.2
1.3
7.2
1.7
1.9
4.7
5.5
25 OPEC countries2
26 Ecuador
27 Venezuela
28 Indonesia
29 Middle East countries
30 African countries
22.9
1.7
8.7
1.9
8.0
2.6
22.7
2.1
9.1
1.8
6.9
2.8
24.8
2.2
9.9
2.6
7.5
2.5
25.4
2.3
10.0
2.7
8.2
2.2
26.4
2.4
10.1
2.8
8.7
2.5
27.3
2.3
10.4
2.9
9.0
2.7
27.4
2.2
10.5
3.2
8.7
2.8
28.5
2.2
10.4
3.5
9.3
3.0
28.2
2.2
10.4
3.2
9.5
3.0
27.2
2.1
9.8
3.4
9.0
2.8
29.1
2.2
9.9
3.8
10.0
3.1
31 Non-OPEC developing countries
1 Total
2 G-10 countries and Switzerland
3 Belgium-Luxembourg
4 France
5 Germany
6 Italy
7 Netherlands
8 Sweden
9 Switzerland
10 United Kingdom
11 Canada
12 Japan
63.0
77.4
96.3
97.5
103.6
104.0
107.0
107.6'
108.2
108.8
111.1
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
5.0
15.2
2.5
2.2
12.0
1.5
3.7
7.9
16.2
3.7
2.6
15.9
1.8
3.9
9.4
19.1
5.8
2.6
21.6
2.0
4.1
10.0
19.7
6.0
2.3
22.9
1.9
4.1
9.6
21.4
6.4
2.6
25.2
2.5
4.0
9.2
22.4
6.2
2.8
25.0
2.6
4.3
8.9
22.9
6.3
3.1
24.5
2.6
4.0
9.0
23.1
6.0
2.9
25.1'
2.4
4.2
9.4
22.5
5.8
3.2
25.2
2.6
4.3
9.5
22.9
6.2
3.2
25.8
2.4
4.2
9.6
23.0
6.5
3.2
26.1
2.4
4.3
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.1
3.4
.2
1.3
5.4
1.0
4.2
1.5
.5
.2
4.2
.3
1.5
7.1
1.1
5.1
1.6
.6
.2
5.1
.3
2.1
9.4
1.7
6.0
1.5
1.0
.2
5.1
.5
1.7
8.6
1.7
5.9
1.4
1.2
.3
5.0
.5
2.2
8.9
1.9
6.3
1.3
1.1
.2
4.9
.5
1.9
9.3
1.8
6.0
1.3
1.3
.2
5.2
.6
2.3
10.8
2.1
6.3
1.6
1.1
.2
5.1
.4
2.0
10.8
2.5
6.6
1.6
1.4
.2
5.1
.5
2.3
10.8
2.6
6.4
1.8
1.2
.2
5.2
.5
1.7
10.8
2.8
6.2
1.7
1.0
.3
5.3
.6
1.8
11.3
2.9
6.2
1.9
1.0
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa3
.6
.6
.2
1.7
.8
.7
.2
2.1
1.1
.7
.2
2.3
1.3
.7
.2
2.3
1.3
.7
.2
2.3
1.3
.8
.1
2.2
1.2
.7
.1
2.4
1.1
.8
.1
2.3
1.3
.8
.1
2.2
1.4
.8
.1
2.4
1.4
.8
.1
2.3
52 Eastern Europe
53 U.S.S.R
54 Yugoslavia
55 Other
7.3
.7
1.8
4.8
7.4
.4
2.3
4.6
7.8
.6
2.5
4.7
7.2
.4
2.5
4.3
6.7
.4
2.4
3.9
6.3
.3
2.2
3.8
6.2
.3
2.2
3.7
5.8
.3
2.2
3.3
5.7
.4
2.3
3.0
5.3
.2
2.3
2.8
5.4
.2
2.4
2.8
56 Offshore banking centers
57 Bahamas
58 Bermuda
59 Cayman Islands and other British West Indies
60 Netherlands Antilles
61 Panama4
62 Lebanon
63 Hong Kong
64 Singapore
65 Others5
40.4
13.7
.8
9.4
1.2
4.3
.2
6.0
4.5
.4
47.0
13.7
.6
10.6
2.1
5.4
.2
8.1
5.9
.3
63.7
19.0
.7
12.4
3.2
7.7
.2
11.8
8.7
.1
65.7
20.2
.7
12.1
3.2
7.2
.2
12.9
9.3
.1
72.0
24.1
.7
12.3
3.0
7.4
.2
14.3
9.9
.1
72.1'
21.4
.8
13.6
3.3
8.1
.1
15.0'
9.8
.0
66.8'
19.0'
.9
12.9
3.3
7.6
.1
13.9'
9.1
.0
66.1'
17.3'
1.0
11.9
3.1
7.1
.1
15.2'
10.3
.0
67.3
19.5
.8
12.1
2.6
6.6
.1
14.5
11.0
.0
65.5
19.0
.8
10.2
4.1
5.7
.1
15.1
10.4
.1
70.2
21.9
.9
12.0
4.1
6.0
.1
14.9
10.2
.0
66 Miscellaneous and unallocated6
11.7
14.0
18.8
18.5
18.4
20.3
17.9
16.7'
16.1
16.8
16.8
1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.18 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches).
2. Besides the Organization of Petroleum Exporting Countries shown individually, this group includes other members of OPEC (Algeria, Gabon, Iran, Iraq,
Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as well
as Bahrain and Oman (not formally members of OPEC).
3. Excludes Liberia.
4. Includes Canal Zone beginning December 1979.
5. Foreign branch claims only.
6. Includes New Zealand. Liberia, and international and regional organizations.
A62
International Statistics • March 1984
3.22
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States 1
Millions of dollars, e n d of period
1982
Type, and area or country
1979
1980
1983
1981
Sept.
Mar.
Dec.
June
Sept.
1 Total
17,433
29,434
28,618
25,149
25,142
22,925
22,381
24,177
2 Payable in dollars
3 Payable in foreign currencies
14,323
3,110
25,689
3,745
24,909
3,709
22,051
3,099
22,042
3,099
20,032
2,893
19,489
2,892
21,355
2,822
By type
4 Financial liabilities
5 Payable in dollars
6 Payable in foreign currencies
7,523
5,223
2,300
11,330
8,528
2,802
12,157
9,499
2,658
10,855
8,565
2,291
10,499
8,424
2,075
10,478
8,533
1,945
10,760
8,730
2,031
10,361
8,435
1,926
7 Commercial liabilities
8 Trade payables
9 Advance receipts and other liabilities
9,910
4,591
5,320
18,104
12,201
5,903
16,461
10,818
5,643
14,294
8,084
6,209
14,642
7,687
6,955
12,447
5,620
6,827
11,621
5,981
5,640
13,815
7,056
6,760
9,100
811
17,161
943
15,409
1,052
13,486
808
13,618
1,024
11,499
948
10,759
862
12,919
896
4,665
338
175
497
829
170
2,477
6,481
479
327
582
681
354
3,923
6,825
471
709
491
743
715
3,565
6,389
494
672
446
759
670
3,212
6,172
502
635
470
702
673
3,061
6,090
407
685
487
687
623
3,071
6,126
436
697
460
728
595
3,060
5,676
379
688
447
730
470
2,829
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
532
964
963
753
735
723
854
783
1,514
404
81
18
516
121
72
3,136
964
1
23
1,452
99
81
3,356
1,279
7
22
1,241
102
98
2,969
938
9
28
981
85
104
2,707
890
14
28
1,002
121
114
2,690
817
18
39
1,001
149
121
2,435
695
10
34
932
151
124
2,546
738
13
32
899
184
117
804
726
31
723
644
38
976
792
75
714
479
67
857
633
69
943
699
68
1,319
943
205
1,322
957
201
Africa
Oil-exporting countries3
4
1
11
1
14
0
17
0
17
0
20
0
17
0
19
0
All other 4
4
15
24
13
12
13
9
15
3,709
137
467
545
227
316
1,080
4,402
90
582
679
219
499
1,209
3,770
71
573
545
220
424
880
3,957
50
762
436
277
358
1,001
3,639
52
595
459
346
363
851
3,430
45
576
440
351
354
679
3,349
41
615
431
342
357
623
3,384
47
506
461
243
448
786
19
Canada
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
27
28
29
Asia
Japan
Middle East oil-exporting countries 2
30
31
32
33
34
35
36
37
38
39
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
40
Canada
924
888
897
1,197
1,496
1,454
1,465
1,407
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,325
69
32
203
21
257
301
1,300
8
75
111
35
367
319
1,044
2
67
67
2
340
276
1,235
6
48
128
3
499
269
991
16
89
60
32
379
148
1,050
4
117
51
4
355
183
999
1
76
49
22
391
219
1,067
1
76
48
14
429
217
48
49
50
Asia
Japan
Middle East oil-exporting countries 2 ' 5
2,991
583
1,014
10,242
802
8,098
9,384
1,094
7,008
6,641
1,192
4,178
7,160
1,226
4,531
5,437
1,235
2,803
4,799
1,236
2,294
6,852
1,294
4,072
51
52
Africa
Oil-exporting countries 3
728
384
817
517
703
344
669
248
704
277
497
158
492
167
506
204
53
All other 4
233
456
664
595
651
578
518
600
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.
Nonbank-Reported Data
3.23
CLAIMS ON UNAFFILIATED FOREIGNERS
United States'
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1980
Type, and area or country
1981
Sept.
Mar.
Dec.
June
1 Total
31,299
34,482
36,185
30,232
27,988
30,726
31,757
2 Payable in dollars
3 Payable in foreign currencies
28,096
3,203
31,528
2,955
32,582
3,603
27,571
25,3^0
2,661
2,628
27,984
2,741
29,114
2,643
By type
4 Financial claims
5 Deposits
6
Payable in dollars
7
Payable in foreign currencies
8 Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
18,398
12,858
11,936
923
5,540
3,714
21,142
15,081
14,456
625
18,356
13,241
1,826
19,763
14,166
13,381
785
5,597
3,914
1,683
413
5,115
3,419
1,696
17,033
12,497
12,071
426
4,536
2,895
1,641
19,743
15,092
14,614
478
4,651
3,006
1,645
21,148
16,324
15,897
426
4,824
3,226
1,598
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims..
12,901
12,185
716
14,720
13,960
759
15,043
14,007
1,036
11,877
10,770
10,954
9,945
1,010
10,983
9,780
1,203
10,609
9,241
1,367
14
15
12,447
454
14,233
487
14,527
516
11,324
552
10,394
561
10,364
619
9,991
6,179
32
177
409
53
73
5,099
6,069
145
298
230
51
54
4,987
4,596
43
285
224
50
117
3,546
4,967
4,772
3,859
134
178
97
107
3,981
6,066
58
90
127
140
99
5,301
7,207
326
215
119
136
34
6,437
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
6,061
3,599
2,462
12,828
1,106
16
60
10
618
12
137
216
23
Canada
5,003
5,036
6,755
4,386
4,287
4,612
4,870
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
6,312
2,773
30
163
7,811
3,477
135
96
2,755
8,812
3,650
7,948
3,435
7,087
3,160
8,173
3,756
18
16
10
30
3,971
313
148
76
3,411
8
62
7,997
3,244
72
48
3,317
348
152
31
32
33
846
2,011
2,929
274
139
50
3,080
352
156
698
153
15
712
233
30
18
14
173
46
165
50
158
48
153
45
154
48
5,405
234
776
561
299
431
985
4,231
178
646
427
3,758
150
473
356
347
339
793
3,592
140
489
419
309
227
754
3,410
144
499
364
242
303
739
157
143
208
Asia
Japan
Middle East oil-exporting countries2
601
607
189
16
20
758
366
37
34
35
Africa
Oil-exporting countries3
258
49
208
26
36
All other4
4,922
5,544
233
1,129
599
318
354
929
37
38
39
40
41
42
43
44
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
199
202
727
593
298
272
901
137
268
133
268
268
291
1,035
771
288
859
914
967
666
635
674
716
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,879
3,766
3,479
2,514
2,722
30
197
645
861
108
223
668
2,690
30
172
401
52
53
54
Asia
Japan
Middle East oil-exporting countries2
3,045
1,047
748
3,126
1,115
701
2,871
949
700
55
56
Africa
Oil-exporting countries3
140
559
131
528
130
57
All other4
16
34
708
343
1,102
12
1,022
410
424
2,772
19
154
481
7
869
373
3,451
1,177
765
3,522
1,052
825
3,959
1,245
905
3,098
973
777
551
130
653
153
772
152
661
21
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
21
321
12
148
21
259
258
12
21
767
351
108
512
21
956
273
415
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
A63
A64
3.24
International Statistics • March 1984
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1984
1983
1984
LYOZ
Jan.
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.?
U.S. corporate securities
STOCKS
41,881
37,981
1 Foreign purchases
2 Foreign sales
69,890
64,472
5,427
5,796
5,758
5,203
5,181
5,168
5,516
5,116
5,530
5,392
4,849'
4,785'
6,020
5,745
5,427
5,796
3 Net purchases, or sales (—)
3,901
5,418
-368
555
13
400
138
64'
275
-368
4 Foreign countries
3,816
5,320
-357
546
14
392
134
64
282
-357
2,530
-143
333
-63
-579
3,117
222
317
366
247
2
131
3,980
-100
1054
-110
1,313
1,808
1,149
531
-808
403
42
24
-167
-71
94
0
-92
-93
80
120
-360
-51
5
16
437
33
135
7
187
49
1
35
-59
146
0
-12
71
-77
54
-13
56
79
75
-98
-88
75
7
-28
261
-10
48
-49
123
171
154
106
-178
51
4
-6
-99
-36
55
-15
-18
-136
124
-41
49
103
-1
-1
-59'
-66
53
24
-97
21
-1'
17
45'
63
1
-3
-278
-64
-51
13
-208
51
183
239
13
123
2
1
-167
-71
94
0
-92
-93
80
120
-360
-51
5
16
85
98
-11
9
-1
8
4
0
-7
-11
21,639
20,188
23,966
23,075
1,770
1,805
1,438
1,463
2,141
1,995
1,888
1,960
2,537
2,492
2,039
1,304
1,661
1,493
1,770
1,805
20 Net purchases, or sales (—)
1,451
890
-35
-25
146
-72
45
735
168
-35
21 Foreign countries
1,479
875
-24
-49
44
-77
142
715
161
-24
22
23
24
25
26
27
28
29
30
31
32
33
2,082
305
2,110
33
157
-589
24
159
-752
-22
-19
7
892
-89
286
51
632
429
123
100
-1,133
841
0
52
-3
-1
-38
3
12
54
-20
9
-22
12
-1
0
-74
-5
-8
5
-8
-33
53
13
-119
78
0
0
115
-6
25
-3
-1
112
-3
-21
-121
74
0
0
14
0
41
1
-19
32
-10
4
-105
19
2
-2
303
2
66
11
7
136
22
24
-249
45
0
-4
458
-31
53
5
15
390
46
-6
116
101
0
0
-87
-4
-10
3
78
-126
-22
20
43
207
0
-3
-1
-38
3
12
54
-20
9
-22
12
-1
0
0
-28
15
-11
24
102
6
-97
20
7
-11
5
6
7
8
9
10
11
12
13
14
15
16
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
17 Nonmonetary international and
regional organizations
BONDS 2
18 Foreign purchases
19 Foreign sales
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
34 Nonmonetary international and
regional organizations
Foreign securities
35 Stocks, net purchases, or sales ( - )
36 Foreign purchases
37 Foreign sales
-1,341
7,163
8,504
-3,848
13,124
16,973
-94
1,200
1,294
-487
972
1,458
-214
1,032
1,246
-106
1,297
1,403
-14
1,140
1,154
-17'
906'
923
-190
1,127
1,317
-94
1,200
1,294
38 Bonds, net purchases, or sales ( - )
39 Foreign purchases
40 Foreign sales
-6,631
27,167
33,798
-3,677
35,626
39,302
569
3,489
2,921
-219
2,534
2,754
-463
2,708
3,171
-54
3,714
3,768
-172
3,902
4,075
173'
3,113'
2,940
-689
3,072
3,761
569
3,489
2,921
41 Net purchases, or sales ( - ) , of stocks and bonds . . . .
-7,972
-7,525
475
-706
-677
-160
-186
155'
-879
475
42
43
44
45
46
47
48
49
-6,806
-2,584
-2,363
336
-1,822
-9
-364
-7,028
-5,630
-1,582
1,120
-912
141
-164
446
188
111
113
37
-5
2
-715
-682
55
47
-145
11
0
-684
-301
-97
62
23
14
-385
-146
124
-355
23
105
16
-59
-235
-338
6
5
90
11
-10
51'
-417
135
160
1
135
-718
-448
-64
17
-80
0
-143
446
188
111
113
37
-5
2
-1,165
-498
28
9
7
-14
49
105
-161
28
Foreign countries
Europe
Canada
Latin America and Caribbean
Asia
Africa
Other countries
Nonmonetary international and
regional organizations
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
37 r
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
A65
Foreign Holdings and Transactions
Millions of dollars
1984
1982
Country or area
1983
1984
1983
Jan.
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan. P
Holdings (end of period)1
1 Estimated total2 . . .
85,220
88,990
88,833
87,483
88,661
90,988
89,559'
88,990
89,694
2 Foreign countries2
80,637
83,895
83,615
82,790
82,763
84,358
83,743'
83,895
84,603
3 Europe2
4 Belgium-Luxembourg
5 Germany2
6 Netherlands
7 Sweden
8 Switzerland2
9 United Kingdom
10 Other Western Europe
11 Eastern Europe
12 Canada
29,284
447
14,841
2,754
677
1,540
6,549
2,476
0
602
35,482
16
17,290
3,129
842
1,118
8,524
4,563
0
1,301
33,082
99
16,315
3,262
684
855
8,235
3,631
0
1,058
32,996
95
16,119
3,234
644
965
8,270
3,669
0
1,088
33,370
58
16,156
3,034
666
1,087
8,289
4,081
0
1,063
34,415
18
16,570
2,987
714
1,177
8,629
4,321
0
1,265
35,051'
2
17,092
3,048
758
1,064
8,626
4,461'
0
1,225
35,482
16
17,290
3,129
842
1,118
8,524
4,563
0
1,301
35,969
33
17,581
3,113
848
1,167
8,723
4,505
0
1,293
13
14
15
16
17
18
19
20
1,076
188
656
232
49,543
11,578
77
55
864
64
716
83
46,129
13,910
79
40
886
62
636
188
48,437
12,763
79
74
800
62
622
116
47,733
13,007
79
94
774
65
631
78
47,430
13,210
79
48
695
66
540
89
47,849
13,446
79
56
914
64
674
176
46,43c
13,600
79
43
864
64
716
83
46,129
13,910
79
40
1,426
64
697
665
45,802
14,012
79
33
4,583
4,186
6
5,095
4,404
6
5,218
4,500
6
4,693
4,086
6
5,898
5,421
6
6,630
6,094
6
5,816
5,030
0
5,095
4,404
6
5,091
4,467
6
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
All other
21 Nonmonetary international and regional organizations .
22 International
23 Latin American regional
Transactions (net purchases, or sales ( - ) during period)
24 Total2
14,972
3,769
704
-2,281
-1,350
1,178
2,327 -1,422'
-575
704
25 Foreign countries2
26 Official institutions
27 Other foreign2
28 Nonmonetary international and regional organizations
16,072
14,550
1,518
-1,097
3,258
997
2,266
506
707
518
190
-3
-1,315
-914
-400
-966
-826
-885
59
-523
-26
5
-31
1,205
1,595
468
1,126
731
-615'
-774'
159'
-808
153
-252
406
-729
707
518
190
-3
7,575
-552
-5,397
-1
-515
0
-172
0
-1,764
0
-305
0
-373
0
-968
0
-60
0
-515
0
MEMO: Oil-exporting countries
29 Middle East3
30 Africa4
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
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 Feb. 29, 1984
Country
Austria..
Belgium.
Brazil...
Canada..
Denmark
Percent
Month
effective
3.75
11.0
49.0
Mar. 1983
Feb. 1984
Mar. 1981
Feb. 1984
Oct. 1983
10.0
7.0
Rate on Feb. 29, 1984
Country
France1
Germany, Fed. Rep. of
Italy
Japan
Netherlands
1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts
Percent
Month
effective
12.0
Dec. 1983
Mar. 1983
Feb. 1984
Oct. 1983
Sept. 1983
4.0
16.0
5.0
5.0
Rate on Feb. 29, 1984
Country
Percent
Norway
Switzerland
United Kingdom2.
Venezuela
Month
effective
4.0
June 1979
Mar. 1983
11.0
May 1983
8.0
or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to such
discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.
A66
3.27
International Statistics • March 1984
FOREIGN SHORT-TERM INTEREST RATES
Percent per annum, averages of daily figures
1983
Country, or type
1981
1982
Aug.
1 Eurodollars
2 United Kingdom
3 Canada
4 Germany
5 Switzerland
6
7
8
9
10
Netherlands
France
Italy
Belgium
Japan
1984
1983
Sept.
Nov.
Oct.
Dec.
Jan.
Feb.
16.79
13.86
18.84
12.05
9.15
12.24
12.21
14.38
8.81
5.04
9.57
10.06
9.48
5.73
4.11
10.27
9.83
9.49
5.66
4.61
9.82
9.63
9.35
5.83
4.40
9.54
9.34
9.31
6.13
4.07
9.79
9.26
9.40
6.26
4.11
10.08
9.34
9.83
6.43
4.29
9.78
9.40
9.84
6.07
3.65
9.91
9.35
9.85
5.91
3.47
11.52
15.28
19.98
15.28
7.58
8.26
14.61
19.99
14.10
6.84
5.58
12.44
18.95
10.51
6.49
6.03
12.33
17.50
9.25
6.52
6.15
12.42
17.42
9.25
6.68
6.07
12.42
17.51
9.44
6.52
6.17
12.31
17.71
9.89
6.35
6.20
12.16
17.75
10.50
6.45
6.01
12.22
17.75
10.68
6.35
5.95
12.36
17.40
11.43
6.34
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 EXCHANGE RATES
Currency units per dollar
1983
Country/currency
1981
1982
1984
1983
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
1 Argentina/peso
7, Australia/dollar1
3 Austria/schilling
4 Belgium/franc
5 Brazil/cruzeiro
6 Canada/dollar
7 Chile/peso
8 China, P.R./yuan
9 Colombia/peso
10 Denmark/krone
n.a.
114.95
15.948
37.194
92.374
1.1990
n.a.
1.7031
n.a.
7.1350
20985.00
101.65
17.060
45.780
179.22
1.2344
51.118
1.8978
64.071
8.3443
8.59
90.14
17.968
51.121
573.27
1.2325
79.350
1.9809
78.563
9.1483
11.22
88.77
18.754
53.841
701.38
1.2326
81.767
1.9867
82.494
9.5926
11.65
91.37
18.305
53.034
784.35
1.2320
83.710
1.9664
84.196
9.4172
11.65
91.59
18.900
54.538
870.21
1.2367
85.600
1.9940
85.938
9.6791
16.73
90.04
19.383
55.939
943.43
1.2469
86.557
1.9920
87.173
9.9530
24.38
90.60
19.815
57.354
1022.81
1.2484
88.355
2.0490
89.703
10.1793
27.15
93.48
19.028
55.279
1131.37
1.2480
88.595
2.0628
91.244
9.8549
11
1?
13
14
15
16
17
18
19
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Indonesia/rupiah
Ireland/pound1
Israel/shekel
4.3128
5.4396
2.2631
n.a.
5.5678
8.6807
n.a.
161.32
n.a.
4.8086
6.5793
2.428
66.872
6.0697
9.4846
660.43
142.05
24.407
5.5636
7.6203
2.5539
87.895
7.2569
10.1040
911.31
124.81
55.865
5.7057
8.0598
2.6679
92.837
8.0079
10.200
986.24
117.41
60.059
5.6390
7.9526
2.6032
92.968
8.0947
10.229
984.12
119.15
77.808
5.7468
8.1646
2.6846
96.229
7.8120
10.378
988.84
115.85
89.344
5.8515
8.3839
2.7500
98.815
7.8044
10.4895
994.62
112.91
100.599
5.9385
8.5948
2.8110
102.601
7.7968
10.7152
996.43
110.20
116.728
5.7892
8.3051
2.6984
101.80
7.7883
10.744
995.03
114.21
130.21
20
21
22
23
24
75
26
77
28
29
Italy/lira
Japan/yen
Malaysia/ringgit
Mexico/peso
Netherlands/guilder
New Zealand/dollar1
Norway/krone
Peru/sol
Philippines/peso
Portugal/escudo
1138.60
220.63
2.3048
24.547
2.4998
86.848
5.7430
n.a.
7.8113
61.739
1354.00
249.06
2.3395
72.990
2.6719
75.101
6.4567
694.59
8.5324
80.101
1519.30
237.55
2.3204
155.01
2.8543
66.790
7.3012
1610.20
11.0940
111.610
1602.62
242.35
2.3506
152.20
2.9844
65.316
7.4271
1995.33
11.050
124.41
1582.81
232.89
2.3451
157.18
2.9206
66.162
7.3244
2074.82
13.750
124.41
1625.79
235.03
2.3450
162.36
3.0078
65.854
7.4696
2131.13
14.050
127.82
1666.88
234.46
2.3407
164.84
3.0856
65.120
7.7237
2213.73
14.050
131.91
1706.63
233.80
2.3411
166.33
3.1602
64.860
7.8763
2320.20
14.050
136.29
1666.39
233.60
2.3363
168.49
3.0455
65.810
7.6937
2409.77
14.050
135.01
30
31
32
33
34
35
36
37
38
39
40
Singapore/dollar
South Africa/rand1
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/Dollar
Thailand/baht
United Kingdom/pound1
Venezuela/bolivar
2.1053
114.77
n.a.
92.396
18.967
5.0659
1.9674
n.a.
21.731
202.43
4.2781
2.1406
92.297
731.93
110.09
20.756
6.2838
2.0327
n.a.
23.014
174.80
4.2981
2.1136
89.85
776.04
143.500
23.510
7.6717
2.1006
n.a.
22.991
151.59
10.6840
2.1417
89.86
790.83
152.022
24.397
7.8773
2.1623
n.a.
22.990
149.86
13.833
2.1350
88.82
791.37
151.30
24.410
7.7844
2.1122
39.420
22.990
149.69
13.088
2.1334
84.23
796.32
154.66
24.572
7.9201
2.1701
38.780
22.990
147.66
12.782
2.1317
82.15
799.23
158.01
24.767
8.0608
2.1983
39.613
22.992
143.38
12.834
2.1309
79.54
800.33
159.832
25.181
8.1782
2.2380
40.202
23.006
140.76
13.021
2.1279
81.31
799.06
154.20
25.270
7.9976
2.2050
40.236
23.000
144.17
13.023
102.94
116.57
125.34
129.74
127.50
130.26
132.84
135.07
131.71
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 p. 700 of the August 1978 BULLETIN.
NOTE. Averages of certified noon buying rates in New York for cable tranfers.
67
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE TO TABULAR
Symbols and
c
e
p
r
*
PRESENTATION
Abbreviations
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when
about half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000
when the smallest unit given is millions)
General
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed
issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
STATISTICAL
List Published
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
Semiannually,
with Latest Bulletin
Reference
Issue
Anticipated schedule of release dates for periodic releases
SPECIAL
and
and
and
and
and
and
and
and
A84
April
August
December
March
April
August
December
March
A70
A70
A68
A68
A76
A76
A74
A74
TABLES
Published Irregularly,
Assets
Assets
Assets
Assets
Assets
Assets
Assets
Assets
Page
December 1983
liabilities
liabilities
liabilities
liabilities
liabilities
liabilities
liabilities
liabilities
of
of
of
of
of
of
of
of
with Latest Bulletin
commercial banks,
commercial banks,
commercial banks,
commercial banks,
U.S. branches and
U.S. branches and
U.S. branches and
U.S. branches and
Special tables begin on next
Reference
December 31, 1982
March 31, 1983
June 30, 1983
September 30, 1983
agencies of foreign banks,
agencies of foreign banks,
agencies of foreign banks,
agencies of foreign banks,
page.
December 31, 1982
March 31, 1983
June 30, 1983
September 30, 1983
1983
1983
1983
1984
1983
1983
1983
1984
A68
4.20
Special Tables • March 1984
DOMESTIC A N D FOREIGN OFFICES, Commercial Banks with Assets of $100 Million or over 1 "
Consolidated Report of Condition; September 30, 1983
Millions of dollars
Banks with foreign offices2
Insured
Foreign
offices3
Total
Domestic
offices
Banks
without
foreign
offices
1,813,016
1,293,822
374,058
980,256
518,361
285,613
13,050
18,924
3,983
19,421
225,797
7,739
12,977
3,983
7,041
117,311
246
182
3,627
203
108,486
7,492
12,795
356
6,839
59,683
5,295
5,931
4
12,378
157,492
24,596
1,278
131,618
4
4
72,743
135,916
16,117
936
118,863
18,807
100,057
58,140
111,766
9,917
769
101,080
14,261
86,819
1,286
24,150
6,199
167
17,783
4,546
13,237
56,854
21,517
8,479
341
12,696
4
4
14,562
14 Total securities, loans, and lease financing receivables
15 Total securities, book value
16 U.S. Treasury
17 Obligations of other U.S. government agencies and corporations
18 Obligations of states and political subdivisions in United States
19 All other securities
20
Other bonds, notes, and debentures
21
Federal Reserve and corporate stock
22
Trading account securities
1,388,869
290,853
102,757
41,122
110,775
36,198
15,646
2,269
18,283
952,517
152,679
46,948
16,376
58,937
30,418
11,105
1,541
17,772
207,390
12,519
120
21
579
11,798
8,575
184
3,039
745,127
140,160
46,828
16,355
58,358
18,619
2,529
1,357
14,733
435,694
137,899
55,691
24,703
51,742
5,764
4,525
728
511
23
24
25
26
27
68,923
1,039,038
13,525
12,270
1,013,244
40,783
760,957
6,798
8,886
745,273
643
193,475
1,670
334
191,471
40,139
567,482
5,128
8,552
553,802
28,015
277,799
6,706
3,381
267,712
246,047
4
4
4
4
4
4
4
4
4
4
147,212
4
4
4
4
4
4
4
4
4
4
8,413
4
4
4
4
4
4
4
4
4
4
138,799
37,565
1,000
71,559
67,147
4,210
62,938
4,412
235
4,177
28,675
98,728
13,918
1,730
53,536
50,667
2,520
48,148
2,869
105
2,764
29,544
101,609
5,023
15,566
4
4
48,966
4
4
10,302
21,752
93,845
4,442
10,692
4,911
5,781
48,346
958
47,388
9,822
20,542
32,391
62
829
608
222
23,000
284
22,716
408
8,092
61,454
4,381
9,863
4,304
5,559
25,346
675
24,672
9,414
12,450
7,763
578
4,874
4
4
620
4
4
480
1,210
49 Loans for purchasing or carrying securities
50 Brokers and dealers in securities
51 Other
52 Loans to finance agricultural production and other loans to farmers
53 Commercial and industrial loans
54 U.S. addressees (domicile)
55 Non-U.S. addressees (domicile)
15,751
9,829
5,921
14,057
448,440
4
4
13,556
9,396
4,159
7,768
361,876
230,356
131,519
1,847
1,200
647
820
120,766
18,726
102,041
11,709
8,196
3,513
6,948
241,110
211,631
29,479
2,195
433
1,762
6,289
86,523
4
4
56 Loans to individuals for household, family, and other personal expenditures
57 Installment loans
58
Passenger automobiles
59
Credit cards and related plans
60
Retail (charge account) credit card
61
Check and revolving credit
62
Mobile homes
63
Other installment loans
64
Other retail consumer goods
65
Residential property repair and modernization
66
Other installment loans for household, family, and other personal expenditures
67 Single-payment loans
68 All other loans
69 Loans to foreign government and official institutions
70 Other
156,594
4
4
4
4
4
4
4
4
4
4
4
56,541
4
4
84,632
4
4
4
4
4
4
4
4
4
4
4
52,069
37,271
14,798
6,602
4
4
4
4
4
4
4
4
4
4
4
22,636
20,582
2,054
78,030
64,104
18,429
25,266
20,993
4,273
3,112
17,297
4,135
3,160
10,002
13,926
29,433
16,689
12,744
71,836
58,923
25,156
12,369
10,638
1,730
3,506
17,893
3,416
4,057
10,420
12,913
4,466
4
4
71
72
73
74
75
76
77
78
79
80
81
15,849
27,096
3,900
1,292
106,248
1,907
61,655
4
4
4
42,686
13,782
16,835
2,364
797
95,512
1,721
61,235
17,241
43,994
4
32,556
2,757
1,748
81
0
47,529
1,248
12,860
4
4
24,075
9,346
11,025
15,087
2,282
0
109,273
473
48,376
4
4
36,418
24,007
2,067
10,230
1,536
495
10,723
186
419
4
4
4
10,118
1 Total assets
2 Cash and due from depository institutions
3 Currency and coin (U.S. and foreign)
4 Balances with Federal Reserve Banks
5 Balances with other central banks
6 Demand balances with commercial banks in United States
7 All other balances with depository institutions in United States and with banks in foreign
countries
8
Time and savings balances with commercial banks in United States
9
Balances with other depository institutions in United States
10
Balances with banks in foreign countries
11
Foreign branches of other U.S. banks
12
Other banks in foreign countries
13
Cash items in process of collection
Federal funds sold and securities purchased under agreements to resell
Total loans, gross
LESS: Unearned income on loans
Allowance for possible loan loss
EQUALS: Loans, net
Total loans, gross, by category
28 Real estate loans
29 Construction and land development
30 Secured by farmland
31 Secured by residential properties
32
1- to 4-family
33
FHA-insured or VA-guaranteed
34
Conventional
35
Multifamily
36
FHA-insured
37
Conventional
38 Secured by nonfarm nonresidential properties
39 Loans to financial institutions
40
41
42
43
44
45
46
47
48
REITs and mortgage companies in United States
Commercial banks in United States
U.S. branches and agencies of foreign banks
Other commercial banks
Banks in foreign countries
Foreign branches of other U.S. banks
Other
Finance companies in United States
Other financial institutions
Lease financing receivables
Bank premises, furniture and fixtures, and other assets representing bank premises
Real estate owned other than bank premises
Intangible assets
All other assets
Investment in unconsolidated subsidiaries and associated companies
Customers' liability on acceptances outstanding
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Net due from foreign branches, foreign subsidiaries, Edge and agreement subsidiaries . . .
Other
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
Commercial Banks
4.20
A69
Continued
Banks with foreign offices2
Item
Insured
Total
Foreign
offices3
Domestic
offices
82
Total liabilities and equity capital
1,813,016
1,293,822
(4)
83
Total liabilities excluding subordinated debt
1,706,705
1,225,336
373,597
912,231
480,587
84
85
86
87
88
89
90
91
92
93
94
95
96
Total deposits
Individuals, partnerships, and corporations
U.S. government
States and political subdivisions in United States
All other
Foreign governments and official institutions
Commercial banks in United States
U.S. branches and agencies of foreign banks
Other commercial banks in United States
Banks in foreign countries
Foreign branches of other U.S. banks
Other banks in foreign countries
Certified and officers' checks, travelers checks, and letters of credit sold for cash
1,369,366
1,096,455
2,568
52,979
204,110
29,078
72,411
299,834
162,125
282
825
136,016
19,285
31,168
3,428
27,741
85,563
14,241
71,322
586
637,439
544,378
1,382
23,824
59,001
9,486
32,843
2,691
30,152
16,672
2,435
14,237
8,854
431,405
389,295
902
28,309
9,092
308
8,398
13,254
937,273
706,503
1,664
24,649
195,017
28,770
64,011
6,119
57,892
102,236
16,676
85,560
9,440
97
Federal funds purchased and securities sold under agreements to repurchase in domestic
offices and Edge and agreement subsidiaries
Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed
money
Interest-bearing demand notes (note balances) issued to U.S. Treasury
Other liabilities for borrowed money
Mortgage indebtedness and liability for capitalized leases
All other liabilities
Acceptances executed and outstanding
Net due to foreign branches, foreign subsidiaries, Edge and agreement subsidiaries
Other
170,259
137,561
368
137,193
32,608
59,206
19,288
39,917
2,281
105,594
61,795
51,440
14,982
36,458
1,451
97,610
61,374
16,777
7,765
4,306
3,459
830
7,979
421
43,799
36,236
16,777
10
56,608
10,536
36,418
9,655
34,663
14,982
19,681
1,441
101,494
50,839
24,075
26,581
98
99
100
101
107
103
104
105
106
Subordinated notes and debentures
107
108
109
110
111
112
113
Total equity capital5
Preferred stock
Common stock
Undivided profits and reserve for contingencies and other capital reserves
Undivided profits
Reserve for contingencies and other capital reserves
(4)
(4)
102,621
(4)
(4)
(4)
(4)
(4)
(4)
Banks
without
foreign
offices
518,361
(4)
(4)
386
(4)
(4)
3,808
(4)
7,558
6,878
5,315
461
4,854
1,563
99,433
581
18,082
32,621
48,150
47,359
791
63,171
453
11,688
19,305
31,725
31,402
323
(4)
(4)
(4)
4
(4)
(4)
()
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
36,212
128
6,394
13,288
16,401
15,933
468
284,713
323,014
461,806
239,755
194,522
45,233
14,938
45,080
94,969
187,704
175,216
274,519
173,682
133,082
40,599
6,763
22,768
47,271
0
0
0
0
0
0
0
0
0
187,704
175,216
274,519
173,682
133,082
40,599
6,763
22,768
47,271
96,822
147,454
187,130
66,060
61,427
4,633
8,175
22,222
47,617
117,473
2,082
20,312
183,317
51,960
1,056
10,295
108,213
0
0
0
0
51,960
1,056
10,295
108,213
65,464
1,025
10,010
74,960
110,102
(4)
(4)
103,458
76,986
26,472
21,050
(4)
(4)
82,408
(4)
(4)
6,638
9,908
(4)
9,591
(4)
(4)
845
8,746
340
317
1,072
1,787,755
272,606
68,774
1,026,351
1,346,518
196,230
173,082
39,807
1,274,224
217,672
39,439
756,798
918,181
300,733
113,715
892
197,877
291,408
140,587
36,678
7,493
16,348
973,490
103,957
38,547
558,921
626,773
135,325
133,094
20,330
512,722
54,808
29,229
269,284
427,657
60,893
32,423
3,130
1,843
196
196
196
1,646
MEMO
114
115
116
117
118
119
120
121
122
123
124
125
126
Deposits in domestic offices
Total demand
Total savings
Total time
Time deposits of $100,000 or more-.
Certificates of deposit (CDs) in denominations of $100,000 or more
Other
Super NOW accounts
Other NOW accounts and ATS accounts (savings deposits authorized for automatic transfer).
All other savings deposits that are subject to a federal regulatory interest rate ceiling
Money market time deposits (a) in minimum denomination of $2,500 but less than $100,000
with original maturities of 26 weeks, and (b) in minimum denomination of $2,500 but
less than $100,000 with original maturities of 91 days
All savers certificates
Total Individual Retirement Accounts (IRA) and Keogh Plan accounts
Demand deposits adjusted 6
131
Standby letters of credit, total, and guarantees issued by the reporting bank's foreign offices.
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Standby letters of credit conveyed to others through participations (included in total standby
letters of credit)
Holdings of commercial paper included in total gross loans
132
133
134
135
136
137
138
139
Average for 30 calendar days (or calendar month) ending with report date
Total assets
Cash and due from depository institutions
Federal funds sold and securities purchased under agreements to resell
Total loans
Total deposits
Time CDs in denominations of $100,000 or more in domestic offices
Federal funds purchased and securities sold under agreements to repurchase
Other liabilities for borrowed money
140
Number of banks
127
128
129
130
For notes see end of table.
(4)
(4)
(4)
(4)
A68
4.21
Special Tables • March 1984
l
DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or over
Consolidated Report of Condition; September 30, 1983
Millions of dollars
Member banks
Item
Total
1 Total assets
2 Cash and due from depository institutions
3 Currency and coin (U.S. and foreign)
4 Balances with Federal Reserve Banks
5 Balances with other central banks
6 Demand balances with commercial banks in United States
7 All other balances with depository institutions in United States and with banks in foreign
countries
8
Time and savings balances with commercial banks in United States
9
Balances with other depository institutions in United States
10
Balances with banks in foreign countries
11 Cash items in process of collection
12 Total securities, loans, and lease financing receivables
13 Total securities, book value
14 U.S. Treasury
15 Obligations of other U.S. government agencies and corporations
16 Obligations of states and political subdivisions in United States
17 All other securities
18
Other bonds, notes, and debentures
19
Federal Reserve and corporate stock
20
Trading account securities
National
State
Nonmember
insured
1,499,451
1,259,888
961,176
298,712
239,563
168,302
12,803
18,742
356
19,218
143,328
10,854
16,813
355
12,524
106,852
8,678
12,500
322
10,233
36,476
2,177
4,313
33
2,291
24,974
1,949
1,929
1
6,694
45,726
14,679
509
30,538
71,457
35,450
10,369
243
24,838
67,330
28,023
8,499
219
19,305
47,096
7,427
1,870
24
5,533
20,234
10,275
4,309
266
5,700
4,126
1,181,479
981,253
753,587
227,666
200,226
278,334
102,637
41,101
110,196
24,400
7,071
2,085
15,244
216,855
78,560
29,346
87,713
21,237
4,507
1,650
15,080
164,605
60,296
24,517
65,955
13,836
3,419
1,269
9,148
52,250
18,263
4,828
21,758
7,401
1,089
381
5,932
61,479
24,077
11,755
22,484
3,163
2,564
435
164
68,280
58,092
45,199
12,893
10,187
22 Total loans, gross
23 LESS: Unearned income on loans
24
Allowance for possible loan loss
25 EQUALS: Loans, net
845,563
11,855
11,936
821,773
714,054
9,220
10,426
694,409
549,776
6,990
7,956
534,831
164,278
2,231
2,470
159,578
131,509
2,634
1,510
127,364
Total loans, gross, by category
26 Real estate loans
27 Construction and land development
28 Secured by farmland
29 Secured by residential properties
30
1- to 4-family
31
FHA-insured or VA-guaranteed
32
Conventional
33
Multifamily
34
FHA-insured
35
Conventional
36 Secured by nonfarm nonresidential properties
237,634
51,486
2,730
125,151
117,870
6,729
111,141
7,281
340
6,941
58,266
189,921
43,411
1,969
100,158
94,424
5,920
88,504
5,734
247
5,488
44,383
158,182
34,594
1,771
84,757
80,114
4,926
75,188
4,643
153
4,490
37,060
31,740
8,817
199
15,401
14,310
994
13,316
1,091
93
998
7,323
47,713
8,076
760
24,993
23,446
809
22,637
1,547.
93
1,454
13,883
69,218
4,961
14,737
25,966
9,894
13,660
64,014
4,697
11,072
25,345
9,653
13,247
40,520
3,550
8,003
14,234
6,281
8,453
23,493
1,147
3,070
11,111
3,372
4,795
5,205
264
3,664
621
241
413
43 Loans for purchasing or carrying securities
44 Brokers and dealers in securities
45 Other
46 Loans to finance agricultural production and other loans to farmers
47 Commercial and industrial loans
13,904
8,629
5,274
13,237
327,673
13,233
8,431
4,802
11,548
282,517
7,518
3,707
3,811
10,527
212,160
5,715
4,724
991
1,021
70,357
671
199
472
1,689
45,156
48 Loans to individuals for household, family, and other personal expenditures
49 Installment loans
50
Passenger automobiles
51
Credit cards and related plans
52
Retail (charge account) credit card
53
Check and revolving <y$dit
54
Mobile homes
55
Other installment loans
56
Other retail consumer goods
57
Residential property repair and modernization
58
Other installment loans for household, family, and other personal expenditures
59 Single-payment loans
60 All other loans
149,992
123,142
43,683
37,636
31,631
6,004
6,618
35,206
7,557
7,222
20,427
26,850
33,905
121,371
99,645
33,101
34,568
29,310
5,258
5,305
26,670
6,060
5,118
15,493
21,726
31,450
100,411
83,264
27,500
28,915
24,721
4,194
4,911
21,938
5,056
4,216
12,666
17,147
20,459
20,960
16,381
5,602
5,653
4,589
1,064
394
4,733
1,004
902
2,827
4,579
10,991
28,621
23,497
10,582
3,067
2,321
746
1,312
8,536
1,498
2,103
4,935
5,124
2,455
61
62
63
64
65
66
67
68
69
13,092
25,348
3,818
495
120,009
659
48,795
36,418
34,137
11,897
20,583
3,038
275
111,411
505
48,036
33,511
29,360
8,953
16,461
2,467
257
81,552
366
34,665
25,762
20,759
2,944
4,123
571
18
29,859
139
13,370
7,748
8,601
1,195
4,765
781
220
8,598
154
760
2,907
4,777
21 Federal funds sold and securities purchased under agreements to resell
37 Loans to financial institutions
38 REITs and mortgage companies in United States
39 Commercial banks in United States
40 Banks in foreign countries
41 Finance companies in United States
42 Other financial institutions
Lease financing receivables
Bank premises, furniture and fixtures, and other assets representing bank premises
Real estate owned other than bank premises
Intangible assets
All other assets
Investment in unconsolidated subsidiaries and associated companies
Customers' liability on acceptances outstanding
Net due from foreign branches, foreign subsidiaries, Edge and agreement subsidiaries
Other
Commercial Banks
4.21
All
Continued
Member banks
Item
Nonmember
insured
Insured
Total
National
State
70 Total liabilities and equity capital8
1,499,451
1,259,888
961,176
298,712
239,563
71 Total liabilities excluding subordinated debt
1,393,601
1,171,313
894,417
276,896
222,287
72 Total deposits
73 Individuals, partnerships, and corporations
74
75 States and political subdivisions in United States
76 All other
77
Foreign governments and official institutions
Commercial banks in United States
78
79
Banks in foreign countries
80 Certified and officers' checks, travelers checks, and letters of credit sold for cash
1,069,532
934,330
2,286
52,155
68,094
9,793
41,242
17,058
12,668
866,634
750,902
1,928
38,908
64,179
9,427
38,479
16,273
10,718
678,146
596,803
1,578
31,985
41,205
4,590
28,025
8,590
6,574
188,488
154,099
350
6,922
22,974
4,837
10,454
7,683
4,144
202,898
183,428
358
13,247
3,915
367
2,763
786
1,950
284,713
1,047
223,647
1,670
9,693
35,988
1,028
28,269
6,691
12,668
241,815
895
186,261
1,394
8,007
34,541
986
27,035
6,520
10,718
179,754
557
141,581
1,091
6,147
23,805
623
20,496
2,687
6,574
62,060
338
44,680
303
1,860
10,736
363
6,540
3,834
4,144
42,898
153
37,386
277
1,686
1,446
42
1,234
170
1,950
461,806
147
390,966
539
38,113
32,041
8,723
12,952
10,366
370,085
118
312,297
469
27,626
29,576
8,400
11,426
9,751
291,467
67
250,388
425
23,244
17,342
3,927
7,514
5,901
78,618
51
61,908
43
4,382
12,234
4,472
3,912
3,849
91,721
29
78,670
70
10,487
2,464
323
1,526
615
323,014
1
318,521
284,313
34,209
77
4,349
66
42
22
2
254,734
1
251,331
225,575
25,756
65
3,275
61
41
18
2
206,925
1
204,209
182,944
21,265
62
2,595
58
40
16
2
47,809
68,280
47,122
42,631
4,491
3
680
3
1
2
67,190
58,738
8,452
11
1,074
4
1
3
169,891
158,951
115,771
43,181
10,939
42,429
19,288
23,140
2,271
39,444
17,610
21,835
1,843
25,340
12,875
12,465
1,545
14,105
4,735
9,370
298
2,984
1,679
1,306
428
109,479
51,259
24,075
34,144
104,441
50,500
23,252
30,690
73,616
37,086
14,982
21,548
30,825
13,413
8,269
9,142
5,038
760
823
3,455
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
Mutual savings banks
Other individuals, partnerships, and corporations
States and political subdivisions in United States
All other
Foreign governments and official institutions
Commercial banks in United States
Banks in foreign countries
Certified and officers' checks, travelers checks, and letters of credit sold for cash
Mutual savings banks
Other individuals, partnerships, and corporations
States and political subdivisions in United States
All other
Foreign governments and official institutions
Mutual savings banks
Other individuals, partnerships, and corporations
Individuals and nonprofit organizations
Corporations and other profit organizations
States and political subdivisions in United States
All other
Foreign governments and official institutions
Commercial banks in United States
111 Federal funds purchased and securities sold under agreements to repurchase
112 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed
113 Interest-bearing demand notes (note balances) issued to U.S. Treasury
114 Other liabilities for borrowed money
115 Mortgage indebtedness and liability for capitalized leases
116
117 Acceptances executed and outstanding
118 Net due to foreign branches, foreign subsidiaries, Edge and agreement subsidiaries
119
MEMO
Time deposits of $100,000 or more
Certificates of deposit (CDs) in denominations of $100,000 or more
Other NOW accounts and ATS accounts (savings deposits authorized for automatic transfer).
All other savings deposits that are subject to a federal regulatory interest rate ceiling
Money market time deposits (a) in minimum denominations of $2,500 but less than $100,000
with original maturities of 26 weeks, and (b) in minimum denominations of $2,500 but
less than $100,000 with original maturities of 91 days
179
130 Total Individual Retirement Accounts (IRA) and Keogh Plan accounts
131
132
133 Conveyed to others through participation (included in standby letters of credit)
134 Holdings of commercial paper included in total gross loans
Average for 30 calendar days (or calendar month) ending with report date
135
136
137
138
139
140
141
142
*
Cash and due from depository institutions
Federal funds sold and securities purchased under agreements to resell
Time CDs in denominations of $100,000 or more in domestic offices
Federal funds purchased and securities sold under agreements to repurchase
Other liabilities for borrowed money
143
For notes see end of table.
6,417
5,415
3,394
2,021
1,002
99,433
120 Subordinated notes and debentures
121
122
123
P4
125
126
127
12.8
*
83,160
63,366
19,794
16,274
239,755
194,522
45,233
14,938
45,080
94,969
200,092
158,337
41,755
11,496
35,128
74,306
150,096
123,293
26,803
9,843
29,238
59,663
49,997
35,044
14,953
1,653
5,890
14,643
39,662
36,185
3,478
3,442
9,951
20,662
117,473
2,082
20,312
183,317
89,816
1,611
15,880
146,056
75,454
1,302
13,082
111,072
14,363
308
2,799
31,976
27,656
471
4,432
37,261
89,052
9,063
1,412
85,495
8,954
960
53,518
5,486
677
21,976
3,468
283
3,558
109
452
1,487,022
158,892
67,882
828,474
1,055,110
196,230
165,590
23,460
1,250,728
135,964
57,069
700,125
854,083
159,982
154,919
22,206
950,926
102,472
44,415
536,614
670,972
124,847
109,548
12,701
299,802
33,492
12,654
163,511
183,111
35,135
45,371
9,506
236,294
22,928
10,813
128,348
201,027
36,248
10,671
1,254
1,843
1,123
948
175
720
A68
4.22
Special Tables • March 1984
DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities'"
Consolidated Report of Condition; September 30, 1983
Millions of dollars
Member banks
Item
Insured
Total
1 Total assets
2 Cash and due from depository institutions
3 Currency and coin (U.S. and foreign)
4 Balances with Federal Reserve Banks
5 Balances with other central banks
6 Demand balances with commercial banks in United States
7 All other balances with depository institutions in United States and with banks in foreign
8
Cash items in process of collection
9 Total securities, loans, and lease financing receivables
10 Total securities, book value
11 U.S. Treasury
12 Obligations of other U.S. government agencies and corporations
13 Obligations of states and political subdivisions in United States
14 All other securities
National
State
Nonmember
insured
1,935,174
1,445,708
1,116,314
329,394
489,466
204,178
17,420
20,866
356
34,270
160,060
12,919
18,357
355
18,023
120,937
10,404
13,773
322
15,016
39,123
2,514
4,584
33
3,007
44,117
4,501
2,510
1
16,247
56,791
74,474
41,222
69,184
32,797
48,625
8,425
20,559
15,568
5,290
1,561,929
1,142,268
887,870
254,398
419,661
415,379
158,207
77,752
152,693
26,727
274,174
101,669
44,343
105,795
22,367
212,375
79,228
37,043
81,308
14,796
61,799
22,441
7,301
24,486
7,572
141,205
56,538
33,409
46,899
4,360
92,336
69,405
54,728
14,677
22,931
1,072,488
17,545
14,283
1,040,659
809,745
11,687
11,475
786,584
629,510
9,030
8,852
611,628
180,235
2,657
2,623
174,955
262,743
5,858
2,809
254,076
Total loans, gross, by category
20 Real estate loans
21 Construction and land development
22 Secured by farmland
23 Secured by residential properties
24
l-to4-family
25
Multifamily
26 Secured by nonfarm nonresidential properties
318,300
58,217
9,065
172,863
164,016
8,847
78,154
223,404
46,149
4,092
120,693
114,357
6,335
52,471
185,889
37,049
3,455
101,538
96,381
5,157
43,847
37,515
9,100
636
19,155
17,976
1,179
8,624
94,895
12,069
4,973
52,170
49,659
2,511
25,683
27
28
29
30
72,683
14,541
39,103
385,281
65,792
13,507
21,240
307,363
41,986
7,757
18,458
233,177
23,806
5,750
2,782
74,186
6,890
1,034
17,863
77,918
31 Loans to individuals for household, family, and other personal expenditures
32 Installment loans
33
Passenger automobiles
34
Credit cards and related plans
35
Mobile homes
36
All other installment loans for household, family, and other personal expenditures
37 Single-payment loans
38 All other loans
205,104
163,535
64,252
39,838
9,632
49,813
41,569
37,476
145,485
117,598
41,960
36,134
6,642
32,863
27,887
32,954
120,518
98,192
34,899
30,163
6,008
27,123
22,326
21,725
24,967
19,406
7,061
5,971
633
5,741
5,562
11,229
59,619
45,937
22,292
3,704
2,991
16,950
13,682
4,523
39
40
41
42
43
13,555
33,930
5,203
595
129,339
12,106
24,247
3,549
331
115,252
9,139
19,555
2,878
311
84,763
2,966
4,692
671
20
30,489
1,449
9,683
1,654
264
14,087
15 Federal funds sold and securities purchased under agreements to resell
16 Total loans, gross
17 LESS: Unearned income on loans
18
Allowance for possible loan loss
19 EQUALS: Loans, net
Loans to financial institutions
Loans for purchasing or carrying securities
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
Lease financing receivables
Bank premises, furniture and fixtures, and other assets representing bank premises
Real estate owned other than bank premises
Intangible assets
All other assets
Commercial Banks
4.22
A73
Continued
Member banks
Insured
Item
Total
National
State
Nonmember
insured
44 Total liabilities and equity capital8
1,935,174
1,445,708
1,116,314
329,394
489,466
45 Total liabilities excluding subordinated debt
1,790,890
1,340,760
1,035,998
304,762
450,130
46 Total deposits
47 Individuals, partnerships, and corporations
48 U.S. government
49 States and political subdivisions in United States
50 All other
51 Certified and officers' checks, travelers checks, and letters of credit sold for cash
1,452,547
1,283,872
3,049
80,622
69,335
15,669
1,028,927
899,518
2,259
50,208
64,899
12,043
813,955
721,203
1,858
41,501
41,694
7,698
214,972
178,314
401
8,707
23,205
4,345
423,621
384,354
790
30,414
4,436
3,626
52 Demand deposits
53 Individuals, partnerships, and corporations
54 U.S. government
55 States and political subdivisions in United States
56 All other
57 Certified and officers' checks, travelers checks, and letters of credit sold for cash
355,101
286,916
2,265
13,619
36,631
15,669
272,293
213,963
1,653
9,638
34,996
12,043
205,589
164,964
1,317
7,531
24,080
7,698
66,704
48,999
336
2,106
10,917
4,345
82,808
72,953
612
3,982
1,635
3,626
58 Time deposits
59 Other individuals, partnerships, and corporations
60 U.S. government
61 States and political subdivisions in United States
62 All other
648,303
557,417
674
57,631
32,580
446,997
381,450
523
35,206
29,819
355,547
307,896
463
29,652
17,537
91,450
73,554
60
5,554
12,282
201,306
175,967
151
22,426
2,761
63 Savings deposits
64 Corporations and other profit organizations
65 Other individuals, partnerships, and corporations
66 U.S. government
67 States and political subdivisions in United States
68 All other
449,144
41,026
398,512
109
9,371
125
309,636
28,565
275,540
83
5,365
84
252,819
23,575
224,770
78
4,318
78
56,818
4,990
50,771
4
1,047
6
139,507
12,462
122,972
26
4,007
40
69 Federal funds purchased and securities sold under agreements to repurchase
70 Interest-bearing demand notes (note balances) issued to U.S. Treasury and other liabilities for
borrowed money
71 Mortgage indebtedness and liability for capitalized leases
72 All other liabilities
175,231
161,935
118,144
43,791
13,296
45,041
2,670
115,401
40,979
1,991
106,928
26,536
1,665
75,699
14,444
326
31,229
4,061
679
8,473
6,888
3,574
2,044
1,269
99,330
76,742
22,588
38,067
283,033
235,039
47,994
26,526
66,701
135,495
218,417
175,504
42,913
16,252
44,469
92,052
165,681
137,864
27,817
13,783
37,134
74,222
52,736
37,640
15,095
2,469
7,335
17,830
64,616
59,535
5,081
10,275
22,232
43,443
196,255
3,012
28,232
249,455
121,992
2,001
19,155
173,968
102,288
1,627
15,819
134,879
19,704
373
3,335
39,088
74,263
1,012
9,078
75,488
91,134
86,414
54,283
32,131
4,720
1,436,685
1,015,358
805,823
209,534
421,328
14,464
74 Total equity capital8
5,618
137,397
73 Subordinated notes and debentures
5,777
4,733
1,044
8,687
MEMO
75
76
77
78
79
80
81
Time deposits of $100,000 or more
Certificates of deposit (CDs) in denominations of $100,000 or more
Other
Super NOW accounts
Other NOW accounts and ATS accounts (savings deposits authorized for automatic transfer)..
All other savings deposits that are subject to a federal regulatory interest rate ceiling
Money market time deposits (a) in minimum denominations of $2,500 but less than $100,000
with original maturities of 26 weeks, and (b) in minimum denominations of $2,500 but
less than $100,000 with original maturities of 91 days
82 All savers certificates
83 Total Individual Retirement Accounts (IRA) and Keogh plan accounts
84 Demand deposits adjusted 6
85 Total standby letters of credit
Average for 30 calendar days (or calendar month) ending with report date
86 Total deposits
87 Number of banks
1. Effective Dec. 31, 1978, the report of condition was substantially revised for
commercial banks. Commercial banks with assets less than $100 million and with
domestic offices only were given the option to complete either the abbreviated or
the standard set of reports. Banks with foreign offices began reporting in greater
detail on a consolidated domestic and foreign basis. These tables reflect the
varying levels of reporting detail.
Beginning Dec. 3, 1981, depository institutions may establish international
banking facilities (IBFs). Activity of IBFs established by U.S. commercial banks
is reflected in the appropriate asset and liability line items in the domestic office
portion of the tables. Activity of IBFs established by Edge Act and Agreement
subsidiaries of U.S. commercial banks is reflected in the appropriate asset and
liability line items in the foreign office portion of the tables. When there is a
column for fully consolidated foreign and domestic data, activity of IBFs is
reflected in the appropriate asset and liability line items in that portion of the
tables.
2. All transactions between domestic and foreign offices of a bank are reported
in "Net due from" and "Net due to" (lines 80 and 104). All other lines represent
transactions with parties other than the domestic and foreign offices of each bank.
Since these intraoffice transactions are erased by consolidation, total assets and
liabilities are the sum of all except intraoffice balances.
3. Foreign offices include branches in foreign countries and in U.S. territories
and possessions, subsidiaries in foreign countries, and all oflices of Edge Act and
agreement corporations wherever located.
4. This item is unavailable for all or some of the banks because of the lesser
detail available from banks without foreign offices, the inapplicability of certain
items to banks that have only domestic offices, and the absence of detail on a fully
consolidated basis for banks with foreign offices.
5. Equity capital is not allocated between the domestic and foreign offices of
banks with foreign offices.
6. Demand deposits adjusted equal demand deposits other than domestic
commercial interbank and U.S. government less cash items in process of
collection.
7. Domestic offices exclude branches in foreign countries and in U.S. territories and possessions, subsidiaries in foreign countries, and all offices of Edge
Act and Agreement corporations wherever located.
8. This item contains the capital accounts of U.S. banks that have no Edge or
foreign operations and reflects the difference between domestic office assets and
liabilities of U.S. banks with Edge or foreign operations excluding the capital
accounts of their Edge or foreign subsidiaries.
A68
4.30
Special Tables • March 1984
ASSETS A N D LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 19831
Millions of dollars
All states2
New York
Item
Branches 3
Total
1 Total assets5
Agencies
224,332
170,044
54,288
2 Cash and due from depository institutions
3 Currency and coin (U.S. and foreign)
4 Balances with Federal Reserve Banks
5 Balances with other central banks
6 Demand balances with commercial banks in United
States
7 All other balances with depository institutions in
United States and with banks in foreign
countries
Time and savings balances with commercial
8
banks in United States
9
Balances with other depository institutions in
United States
10
Balances with banks in foreign countries
11
Foreign branches of U.S. banks
12
Other banks in foreign countries
13 Cash items in process of collection
41,853
22
897
20
38,170
19
822
16
3,683
3
75
4
1,450
1,188
39,286
19,321
Branches 3
149,547
Agencies
Other states 2
California,
total4
Illinois,
branches
Branches
Agencies
9,146
42,174
10,017
35,656
15
651
16
450
1
20
0
3,375
2
59
3
1,710
2
31
0
328
1
123
0
334
1
14
0
262
1,109
48
199
34
21
38
35,953
3,333
33,702
379
3,108
1,641
179
278
17,318
2,003
15,943
285
1,865
%9
108
151
133
19,832
1,449
18,383
178
126
18,509
1,414
17,095
172
6
1,324
35
1,289
6
126
17,633
1,350
16,282
164
1
92
5
88
2
5
1,238
24
1,214
3
0
672
53
618
4
0
71
0
71
3
0
127
17
110
2
14 Total securities, loans, and lease financing receivables . . . .
138,820
104,302
34,518
90,475
5,986
26,111
7,688
4,170
4,390
15 Total securities, book value
16 U.S. Treasury
17 Obligations of other U.S. government agencies and
corporations
18 Obligations of states and political subdivisions in
United States
19 Other bonds, notes, debentures, and corporate stock ..
8,054
4,945
7,314
4,605
740
340
7,002
4,4%
374
303
434
64
193
52
36
28
15
2
483
464
20
460
2
16
0
2
4
80
2,545
71
2,174
10
370
46
1,999
0
69
1
354
23
119
1
4
9
0
6,230
5,157
1,073
4,831
593
440
186
123
58
5,425
805
4,565
592
860
213
4,277
553
388
205
440
0
148
38
123
0
50
8
6,214
165
6,049
5,141
150
4,991
1,073
15
1,059
4,822
46
4,777
593
0
593
432
0
432
186
12
174
123
93
30
58
14
44
20 Federal funds sold and securities purchased under
agreements to resell
21
22
By holder
Commercial banks in United States
Others
23
24
25
26
By type
One-day maturity or continuing contract
Securities purchased under agreements to resell
Other
Other securities purchased under agreements to
resell
7,868
5,580
16
16
0
8
0
8
0
0
0
130,913
147
130,766
97,094
106
96,988
33,819
41
33,777
83,568
%
83,472
5,616
4
5,612
25,715
38
25,677
7,501
7
7,495
4,137
3
4,134
4,375
0
4,374
4,807
51,286
28,620
25,639
2,981
21,044
860
20,185
1,622
2,046
39,136
21,751
18,972
2,780
16,168
759
15,409
1,217
2,761
12,150
6,869
6,667
201
4,876
100
4,775
405
1,306
35,262
19,750
17,458
2,292
14,602
666
13,936
910
18
1,407
397
365
32
791
11
780
220
2,024
10,406
6,683
6,522
162
3,554
97
3,457
169
133
3,013
1,449
1,020
429
1,264
45
1,219
300
453
332
217
174
43
114
36
78
1
873
865
123
100
23
720
5
715
23
39 Loans for purchasing or carrying securities
40 Commercial and industrial loans
41 U.S. addressees (domicile)
42 Non-U.S. addressees (domicile)
43 Loans to individuals for household, family, and other
personal expenditures
44 All other loans
45 Loans to foreign governments and official
institutions
46 Other
897
56,850
32,581
24,270
867
42,040
22,960
19,079
29
14,811
9,621
5,190
784
34,059
16,751
17,309
29
2,334
762
1,572
83
11,292
7,850
3,442
0
3,804
3,237
567
1
3,148
2,306
842
0
2,213
1,675
538
218
16,854
170
12,835
48
4,019
116
12,041
12
1,815
50
1,860
9
542
23
180
8
415
15,005
1,849
11,130
1,705
3,875
143
10,469
1,572
1,741
75
1,808
52
495
47
104
76
389
26
47 Lease financing receivables
48 All other assets
49 Customers' liability on acceptances outstanding
U.S. addressees (domicile)
50
51
Non-U.S. addressees (domicile)
52 Net due from related banking institutions6
53 Other
1
37,430
12,156
7,721
4,436
19,770
5,503
0
22,415
9,149
5,507
3,642
8,932
4,334
1
15,014
3,007
2,214
793
10,838
1,169
0
18,586
8,731
5,321
3,410
5,956
3,899
0
2,118
308
35
274
1,564
246
0
12,249
2,632
2,174
459
8,767
850
0
433
182
162
21
0
250
0
3,247
219
15
204
2,920
107
1
798
83
14
68
564
151
27 Total loans, gross
28 LESS: Unearned income on loans
29 EQUALS: Loans, net
Total loans, gross, by category
30 Real estate loans
31 Loans to financial institutions
32 Commercial banks in United States
33
U.S. branches and agencies of other foreign banks ..
34
Other commercial banks
35 Banks in foreign countries
36
Foreign branches of U.S. banks
Other
37
38 Other financial institutions
U.S. Branches and Agencies
4.30
A75
Continued
All states2
New York
Item
Branches3
Total
Agencies
Branches3
Agencies
Other states2
California,
total4
Illinois,
branches
Branches
Agencies
54 Total liabilities5
224,332
170,044
54,288
149,547
9,146
42,174
10,017
7,868
5,580
55 Total deposits and credit balances
56 Individuals, partnerships, and corporations
57
U.S. addressees (domicile)
58
Non-U.S. addressees (domicile)
59 U.S. government, states, and political subdivisions
in United States
60 All other
Foreign governments and official institutions . . . .
61
Commercial banks in United States
62
63
U.S. branches and agencies of other foreign
banks
Other commercial banks in United States
64
65
Banks in foreign countries
Foreign branches of U.S. banks
66
Other banks in foreign countries
67
68
Certified and officers' checks, travelers checks,
and letters of credit sold for cash
108,043
35,916
21,938
13,978
92,654
32,208
21,864
10,344
15,389
3,708
73
3,635
83,180
26,210
16,340
9,870
3,955
1,430
30
1,400
11,133
1,323
277
1,046
3,136
831
732
99
4,892
4,632
4,546
86
1,748
1,491
12
1,478
76
72,051
4,747
28,780
76
60,370
4,223
22,773
0
11,681
524
6,007
10
56,960
3,788
21,234
0
2,525
360
1,087
3
9,806
518
5,181
0
2,305
32
1,043
63
198
21
84
0
257
27
150
19,409
9,371
37,826
6,667
31,159
15,276
7,497
32,789
5,444
27,345
4,133
1,874
5,037
1,223
3,814
14,299
6,936
31,379
5,222
26,156
383
704
1,010
291
719
4,105
1,076
4,075
927
3,148
534
509
1,214
197
1,017
33
51
87
25
62
55
95
62
5
57
698
585
113
560
67
32
15
6
19
69 Demand deposits
70 Individuals, partnerships, and corporations
71
U.S. addressees (domicile)
72
Non-U.S. addressees (domicile)
73 U.S. government, states, and political subdivisions
in United States
74 All other
Foreign governments and official institutions . . . .
75
76
Commercial banks in United States
77
U.S. branches and agencies of other foreign
banks
Other commercial banks in United States
78
79
Banks in foreign countries
80
Certified and officers' checks, travelers checks,
and letters of credit sold for cash
3,128
1,611
1,021
589
2,898
1,516
1,021
495
230
95
0
95
2,642
1,313
835
479
68
0
0
0
88
51
19
32
113
94
91
3
112
83
77
5
106
70
0
70
5
1,513
186
44
5
1,378
183
44
0
135
3
1
4
1,324
160
42
0
68
0
0
0
37
2
1
0
19
2
0
0
28
21
1
0
36
1
1
6
38
584
6
38
565
0
1
19
6
36
563
0
0
0
0
1
3
0
0
2
0
1
0
0
1
16
698
585
113
560
67
32
15
6
19
81 Time deposits
82 Individuals, partnerships, and corporations
83
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
84
85 U.S. government, states, and political subdivisions
in United States
86 All other
87
Foreign governments and official institutions . . . .
88
Commercial banks in United States
89
U.S. branches and agencies of other foreign
banks
Other commercial banks in United States
90
91
Banks in foreign countries
103,846
33,481
20,406
13,075
89,035
30,103
20,405
9,698
14,811
3,378
0
3,378
80,008
24,497
15,236
9,261
3,646
1,298
0
1,298
10,937
1,167
197
970
2,946
660
571
89
4,707
4,476
4,401
75
1,603
1,382
0
1,382
71
70,294
4,536
28,649
71
58,861
4,032
22,704
0
11,433
504
5,945
6
55,506
3,620
21,168
0
2,347
343
1,027
3
9,767
515
5,180
0
2,285
30
1,043
62
168
0
83
0
221
26
149
19,363
9,286
37,109
15,265
7,439
32,125
4,098
1,848
4,984
14,288
6,880
30,718
348
679
977
4,105
1,075
4,072
534
508
1,212
33
50
85
55
94
46
92 Savings deposits
93 Individuals, partnerships, and corporations
94
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
95
% U.S. government, states, and political subdivisions
in United States
97 All other
596
595
401
193
538
537
401
136
58
58
0
58
350
350
235
115
0
0
0
0
72
72
30
42
77
77
70
7
72
71
65
5
25
25
0
25
0
1
0
1
0
0
0
0
0
0
0
0
0
0
0
1
0
0
98 Credit balances
99 Individuals, partnerships, and corporations
100
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
101
102 U.S. government, states, and political subdivisions
in United States
103 All other
104
Foreign governments and official institutions . . . .
Commercial banks in United States
105
U.S. branches and agencies of other foreign
106
banks
107
Other commercial banks in United States
108
Banks in foreign countries
473
230
110
120
182
52
37
15
290
178
73
105
179
49
34
15
241
131
30
101
35
34
32
2
0
0
0
0
2
2
2
0
15
14
12
2
0
243
25
86
0
130
8
25
0
112
18
61
0
130
7
25
0
110
17
60
0
2
1
0
0
0
0
0
0
0
0
0
0
1
0
0
40
46
131
5
20
98
35
26
34
5
20
98
35
25
33
0
0
0
0
0
0
0
0
0
0
0
0
For notes see end of table.
A68
4.30
Special Tables • March 1984
Continued
All states2
New York
Item
110
111
By holder
Commercial banks in United States
Others
112
in
114
115
By type
One-day maturity or continuing contract
Securities sold under agreements to repurchase ..
Other
Other securities sold under agreements to
repurchase
Illinois,
branches
Branches3
Agencies
20,196
14,274
5,922
13,362
974
4,410
16,952
3,245
11,474
2,800
5,478
444
10,658
2,704
760
213
19,003
1,587
17,415
13,156
1,485
11,671
5,847
103
5,744
12,332
1,239
11,092
942
75
867
Total
109 Federal funds purchased and securities sold under
agreement to repurchase
Branches3
Other states2
California,
total4
Agencies
Branches
Agencies
544
284
623
4,338
72
488
55
243
41
464
159
4,367
28
4,339
455
158
297
284
87
196
623
0
623
1,193
1,118
75
1,030
32
43
88
0
0
116 Other liabilities for borrowed money
117 Owed to banks
118
U.S. addressees (domicile)
119
Non-U.S. addressees (domicile)
120 Owed to others
121
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
122
48,560
45,091
43,110
1,981
3,469
3,244
225
26,292
23,390
21,724
1,666
2,902
2,766
136
22,268
21,701
21,385
315
567
478
89
24,372
21,499
19,898
1,601
2,873
2,739
134
2,551
2,509
2,266
243
41
8
34
19,690
19,142
19,110
32
548
491
57
852
851
829
23
0
0
0
684
678
639
39
6
5
0
411
411
367
44
0
0
0
171 All other liabilities
124 Acceptances executed and outstanding6
125 Net due to related banking institutions
126 Other
47,533
13,591
30,407
3,535
36,824
10,223
23,749
2,851
10,709
3,367
6,658
684
28,633
9,790
16,312
2,532
1,667
386
1,133
148
6,942
2,909
3,531
502
5,486
185
5,197
103
2,008
232
1,597
178
2,797
88
2,637
72
127 Time deposits of $100,000 or more
128 Certificates of deposit (CDs) in denominations of
$100,000 or more
129 Other
130 Savings deposits authorized for automatic transfer and
NOW accounts
131 Money market time certificates of $10,000 and less
than $100,000 with original maturities of 26 weeks
132 Time certificates of deposit in denominations of
$100,000 or more with remaining maturity of
more than 12 months
80,127
70,034
10,093
61,575
317
9,870
2,502
4,621
1,241
28,094
52,032
26,362
43,671
1,732
8,361
20,477
41,099
173
144
1,029
8,840
988
1,514
4,560
61
867
374
77
53
23
35
0
15
7
8
12
0
0
0
0
0
0
0
0
0
4,983
4,953
30
4,186
10
38
146
594
8
133
134
135
136
137
138
139
140
3,411
64,986
8,594
8,212
14,366
11,714
2,652
2,577
63,921
8,226
5,365
12,069
9,709
2,359
835
1,064
369
2,848
2,297
2,005
292
2,249
57,141
4,940
4,797
10,539
8,515
2,023
131
1,005
13
597
502
373
129
704
99
513
2,081
1,338
1,149
188
46
6,715
358
250
693
547
145
281
16
2,417
279
539
405
134
0
10
352
208
756
725
32
2,517
2,378
140
2,254
72
112
49
11
20
MEMO
Acceptances refinanced with a U.S.-chartered bank ..
Statutory or regulatory asset pledge requirement
Statutory or regulatory asset maintenance requirement
Commercial letters of credit
Standby letters of credit, total
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Standby letters of credit conveyed to others through
participations (included in total standby letters of
credit)
141 Holdings of commercial paper included in total gross
loans
142 Holdings of acceptances included in total commercial
and industrial loans
143 Immediately available funds with a maturity greater
than one day (included in other liabilities for borrowed money)
35,165
17,672
17,493
16,285
1,977
15,584
711
392
216
144 Gross due from related banking institutions6
145 U.S. addressees (domicile)
Branches and agencies in the United States
146
147
In the same state as reporter
148
In other states
149
U.S. banking subsidiaries7
150 Non-U.S. addressees (domicile)
151
Head office and non-U.S. branches and agencies.
Non-U.S. banking companies and offices
152
86,962
21,633
21,182
751
20,430
452
65,329
62,761
2,568
61,546
10,998
10.745
375
10,370
253
50,548
48,373
2,175
25,417
10,636
10,437
376
10,060
199
14,781
14,388
393
54,221
7,215
6,969
329
6,640
246
47,006
44,932
2,074
6,960
1,570
1,507
87
1,420
63
5,390
5,373
17
17,320
8,635
8,496
275
8,220
140
8,685
8,406
279
3,235
186
185
0
185
1
3,049
2,956
93
3,793
3,473
3,473
21
3,453
0
320
311
8
1,433
554
552
39
513
2
879
782
98
153 Gross due to related banking institutions6
154 U.S. addressees (domicile)
155
Branches and agencies in the United States
156
In the same state as reporter
157
In other states
158
U.S. banking subsidiaries7
159 Non-U.S. addressees (domicile)
160
Head office and non-U.S. branches and agencies.
Non-U.S. banking companies and offices
161
97,599
21,355
20,985
711
20,274
370
76,245
74,168
2,076
76,363
12,835
12,570
361
12,210
265
63,528
61,639
1,889
21,236
8,520
8,415
350
8,064
105
12,717
12,530
187
64,577
6,450
6,245
314
5,931
205
58,127
56,332
1,794
6,530
2,519
2,489
91
2,398
30
4,011
3,949
62
12,084
3,886
3,814
249
3,564
72
8,198
8,091
108
8,433
4,138
4,120
0
4,120
18
4,295
4,201
93
2,470
1,900
1,889
18
1,870
12
570
570
0
3,506
2,462
2,429
39
2,390
33
1,044
1,026
19
593
546
47
509
11
33
32
1
7
5,062
3,821
1,241
3,629
120
1,127
57
122
8
U.S. Branches and Agencies
4.30
All
Continued
All states2
New York
Item
Branches3
Agencies
Branches3
Agencies
234,987
37,560
163,903
34,169
71,084
3,391
143,213
31,737
25,043
531
42,765
2,992
5,964
126,199
20,971
101,458
27,250
4,410
92,532
15,988
86,240
25,573
1,554
33,667
4,984
15,219
1,677
4,149
79,024
14,357
76,675
19,398
1,006
5,296
865
4,266
139
19,884
47,248
13,538
24,526
6,346
22,723
11,877
22,541
434
249
185
155
Total
Average for 30 calendar days (or calendar month)
ending with report date
162 Total assets
163 Cash and due from depository institutions
164 Federal funds sold and securities purchased under
agreements to resell
165 Total loans
166 Loans to banks in foreign countries
167 Total deposits and credit balances
168 Time CDs in denominations of $100,000 or more
169 Federal funds purchased and securities sold under
agreements to repurchase
170 Other liabilities for borrowed money
171 Number of reports filed8
1. Data are aggregates of categories reported on the quarterly form FFIEC 002,
"Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign
Banks." This form was first used for reporting data as of June 30, 1980. From
November 1972 through May 1980, U.S. branches and agencies of foreign banks
had filed a monthly FR 886a report. Aggregate data from that report were
available through the Federal Reserve statistical release G.ll, last issued on
July 10, 1980. Data in this table and in the G.l 1 tables are not strictly comparable
because of differences in reporting panels and in definitions of balance sheet
items.
2. Includes the District of Columbia.
3. Includes all offices that have the power to accept deposits from U.S.
residents, including any such offices that are considered agencies under state law.
4. Agencies account for virtually all of the assets and liabilities reported in
California.
5. Total assets and total liabilities include net balances, if any, due from or due
to related banking institutions in the United States and in foreign countries (see
California,
total4
Other states2
Illinois,
branches
Branches
Agencies
9,956
1,663
8,172
336
5,839
301
499
25,733
3,608
10,595
" 934
152
7,528
1,317
2,952
976
100
4,172
116
5,277
4,948
58
4,446
709
1,693
854
877
2,341
4,995
20,355
1,103
920
283
683
749
407
40
115
43
33
48
footnote 6). On the former monthly branch and agency report, available through
the G.ll statistical release, gross balances were included in total assets and total
liabilities. Therefore, total asset and total liability figures in this table are not
comparable to those in the G.ll tables.
6. "Related banking institutions" includes the foreign head office and other
U.S. and foreign branches and agencies of the bank, the bank's parent holding
company, and majority-owned banking subsidiaries of the bank and of its parent
holding company (including subsidiaries owned both directly and indirectly).
Gross amounts due from and due to related banking institutions are shown as
memo items.
7. "U.S. banking subsidiaries" refers to U.S. banking subsidiaries majorityowned by the foreign bank and by related foreign banks and includes U.S. offices
of U.S.-chartered commercial banks, of Edge Act and Agreement corporations,
and of New York State (Article XII) investment companies.
8. In some cases two or more offices of a foreign bank within the same
metropolitan area file a consolidated report.
78
Federal Reserve Board of Governors
PAUL A . VOLCKER,
PRESTON M A R T I N ,
OFFICE
Chairman
Vice Chairman
OF BOARD
MEMBERS
HENRY C.
OFFICE
OF STAFF
MONETARY
Assistant to the Board
D O N A L D J. W I N N , Assistant
to the Board
S T E V E N M . R O B E R T S , Assistant
to the Chairman
F R A N K O ' B R I E N , J R . , Deputy Assistant
to the Board
A N T H O N Y F . C O L E , Special Assistant
to the Board
W I L L I A M R . J O N E S , Special Assistant
to the Board
N A O M I P . S A L U S , Special Assistant
to the Board
WALLICH
J. CHARLES PARTEE
DIRECTOR
AND FINANCIAL
FOR
POLICY
JOSEPH R . C O Y N E ,
Staff Director
Deputy Staff Director
S T A N L E Y J. S I G E L , Assistant
to the Board
N O R M A N D R . V . B E R N A R D , Special Assistant
STEPHEN H . A X I L R O D ,
DONALD L. KOHN,
DIVISION
LEGAL
DIVISION
OF RESEARCH
AND
to the Board
STATISTICS
Director
Deputy
Director
M I C H A E L J. P R E L L , Deputy
Director
JOSEPH S . Z E I S E L , Deputy
Director
J A R E D J. E N Z L E R , Associate
Director
E L E A N O R J. S T O C K W E L L , Associate
Director
D A V I D E . L I N D S E Y , Deputy Associate
Director
F R E D E R I C K M . S T R U B L E , Deputy Associate
Director
H E L M U T F . W E N D E L , Deputy Associate
Director
M A R T H A B E T H E A , Assistant
Director
R O B E R T M . F I S H E R , Assistant
Director
S U S A N J. L E P P E R , Assistant
Director
T H O M A S D . S I M P S O N , Assistant
Director
L A W R E N C E S L I F M A N , Assistant
Director
S T E P H E N P . T A Y L O R , Assistant
Director
P E T E R A . T I N S L E Y , Assistant
Director
L E V O N H . G A R A B E D I A N , Assistant
Director
(Administration)
JAMES L . K I C H L I N E ,
EDWARD C. ETTIN,
General Counsel
Associate General Counsel
G I L B E R T T . S C H W A R T Z , Associate
General Counsel
R I C H A R D M . A S H T O N , Assistant
General Counsel
N A N C Y P . J A C K L I N , Assistant
General Counsel
M A R Y E L L E N A . B R O W N , Assistant
to the General Counsel
MICHAEL BRADFIELD,
J. V I R G I L M A T T I N G L Y , J R . ,
OFFICE
OF THE
SECRETARY
Secretary
Associate
Secretary
Associate
Secretary
WILLIAM W . WILES,
BARBARA R . LOWREY,
JAMES M C A F E E ,
DIVISION
OF
CONSUMER
AND COMMUNITY
AFFAIRS
Director
Associate
Director
G L E N N E . L O N E Y , Assistant
Director
D O L O R E S S . S M I T H , Assistant
Director
GRIFFITH L . G A R W O O D ,
DIVISION
OF INTERNATIONAL
FINANCE
JERAULD C . K L U C K M A N ,
DIVISION
OF
SUPERVISION
BANKING
AND
REGULATION
Director
Deputy
Director
F R E D E R I C K R . D A H L , Associate
Director
D O N E . K L I N E , Associate
Director
J A C K M . E G E R T S O N , Assistant
Director
R O B E R T S . P L O T K I N , Assistant
Director
S I D N E Y M . S U S S A N , Assistant
Director
L A U R A M . H O M E R , Securities
Credit Officer
JOHN E . R Y A N ,
WILLIAM TAYLOR,
Director
Senior Associate
Director
C H A R L E S J. S I E G M A N , Senior Associate
Director
L A R R Y J. P R O M I S E L , Associate
Director
D A L E W . H E N D E R S O N , Deputy Associate
Director
S A M U E L P I Z E R , Staff
Adviser
R A L P H W . S M I T H , J R . , Assistant
Director
EDWIN M. TRUMAN,
ROBERT F . GEMMILL,
79
and Official Staff
N A N C Y H . TEETERS
LYLE E . GRAMLEY
EMMETT J. RICE
OFFICE
STAFF
OFFICE
OF
DIRECTOR
FOR
MANAGEMENT
Director
Assistant
S T E P H E N R . M A L P H R U S , Assistant
Automation and
Technology
S. D A V I D FROST,
Staff Director
Staff Director for Office
OF DATA
PROCESSING
Director
Deputy
Director
G L E N N L . C U M M I N S , Assistant
Director
N E A L H . H I L L E R M A N , Assistant
Director
R I C H A R D J. M A N A S S E R I , Assistant
Director
W I L L I A M C . S C H N E I D E R , J R . , Assistant
Director
R O B E R T J. Z E M E L , Assistant
Director
CHARLES L . HAMPTON,
BRUCE M . BEARDSLEY,
DIVISION
OF
PERSONNEL
Director
Assistant
Director
W O O D , Assistant
Director
DAVID L . SHANNON,
JOHN R . W E I S ,
CHARLES W .
OFFICE
OF THE
CONTROLLER
GEORGE E . LIVINGSTON,
BRENT L . BOWEN,
DIVISION
Assistant
OF SUPPORT
ROBERT E . FRAZIER,
Controller
Controller
SERVICES
Director
Associate
WALTER W . KREIMANN,
Director
*On loan from the Federal Reserve Bank of New York.
DIRECTOR
RESERVE
BANK
FOR
ACTIVITIES
Staff Director
Adviser, Equal
JOSEPH W . D A N I E L S , S R . ,
Opportunity
DIVISION
DIVISION
OF STAFF
THEODORE E . ALLISON,
Staff
EDWARD T. MULRENIN,
FEDERAL
BANK
Employment
Programs
OF FEDERAL
RESERVE
OPERATIONS
Director
Associate
Director
D A V I D L . R O B I N S O N , Associate
Director
C . W I L L I A M S C H L E I C H E R , J R . , Associate
Director
W A L T E R A L T H A U S E N , Assistant
Director
C H A R L E S W . B E N N E T T , Assistant
Director
A N N E M . D E B E E R , Assistant
Director
J A C K D E N N I S , J R . , Assistant
Director
E A R L G . H A M I L T O N , Assistant
Director
* JOHN F . S O B A L A , Assistant
Director
C L Y D E H . F A R N S W O R T H , JR.,
ELLIOTT C . M C E N T E E ,
80
Federal Reserve Bulletin • March 1984
Federal Open Market Committee
FEDERAL OPEN MARKET
PAUL A . VOLCKER,
COMMITTEE
ANTHONY M . SOLOMON,
Chairman
LYLE E. GRAMLEY
PRESTON M A R T I N
E M M E T T J. R I C E
ROGER G U F F E Y
F R A N K E . MORRIS
THEODORE H . ROBERTS
SILAS K E E H N
J. C H A R L E S P A R T E E
Vice
N A N C Y H . TEETERS
HENRY C . WALLICH
Associate
Economist
Associate
Economist
R O B E R T EISENMENGER, Associate
Economist
E D W A R D C . E T T I N , Associate
Economist
M I C H A E L J. P R E L L , Associate
Economist
K A R L A . S C H E L D , Associate
Economist
CHARLES J. S I E G M A N , Associate
Economist
JOSEPH S . ZEISEL, Associate
Economist
STEPHEN H . A X I L R O D ,
RICHARD G . DAVIS,
NORMAND R . V . BERNARD,
THOMAS E . DAVIS,
Staff Director and Secretary
Assistant
Secretary
N A N C Y M . S T E E L E , Deputy Assistant
Secretary
M I C H A E L B R A D F I E L D , General
Counsel
JAMES H . O L T M A N , Deputy General
Counsel
JAMES L . K I C H L I N E ,
Economist
E D W I N M . T R U M A N , Economist
(International)
A N A T O L B A L B A C H , Associate
Economist
PETER
D.
FEDERAL ADVISORY
Manager for Domestic Operations, System Open Market Account
Manager for Foreign Operations, System Open Market Account
STERNLIGHT,
S A M Y . CROSS,
COUNCIL
President
Vice President
JOHN G . M C C O Y ,
JOSEPH J. P I N O L A ,
V I N C E N T C . B U R K E , JR., N . B E R N E H A R T , A N D L E W I S T . PRESTON,
Seventh District
Eighth District
E. PETER G I L L E T T E , JR., Ninth District
N. B E R N E H A R T , Tenth District
NAT S. ROGERS, Eleventh District
JOSEPH J. P I N O L A , Twelfth District
ROGER
First District
Second District
R A Y M O N D J. D E M P S E Y , Third District
JOHN G . M C C O Y , Fourth District
V I N C E N T C . B U R K E , JR., Fifth District
PHILIP F. S E A R L E , Sixth District
ROBERT L . N E W E L L ,
LEWIS
T.
ANDERSON,
WILLIAM H . BOWEN,
PRESTON,
E.
Directors
HERBERT V . PROCHNOW,
W I L L I A M J. KORSVIK,
Associate
Secretary
Secretary
Chairman
81
and Advisory Councils
CONSUMER ADVISORY
COUNCIL
WILLARD P. OGBURN,
TIMOTHY D . MARRINAN,
Boston, Massachusetts, Chairman
Minneapolis, Minnesota, Vice Chairman
FREDERICK
G. B R A T T , Medford, Massachusetts
G. B O Y L E , Austin, Texas
G E R A L D R . CHRISTENSEN, Salt Lake City, Utah
T H O M A S L. C L A R K , JR., N e w York, N e w York
JEAN A. C R O C K E T T , Philadelphia, Pennsylvania
M E R E D I T H F E R N S T R O M , N e w York, N e w York
A L L E N J. FISHBEIN, Washington, D.C.
E.C.A. FORSBERG, SR., Atlanta, Georgia
S T E V E N M. G E A R Y , Jefferson City, Missouri
RICHARD F. H A L L I B U R T O N , Kansas City, Missouri
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CHARLES C. H O L T , Austin, Texas
H A R R Y N . JACKSON, Minneapolis, Minnesota
K E N N E T H V . L A R K I N , San Francisco, California
THRIFT INSTITUTIONS
ADVISORY
H.
MILLER,
Norman, Oklahoma
Columbia, Maryland
ROBERT F. M U R P H Y , Detroit, Michigan
L A W R E N C E S. O K I N A G A , Honolulu, Hawaii
E L V A Q U I J A N O , San Antonio, Texas
JANET J. R A T H E , Portland, Oregon
JANET S C A C C I O T T I , Providence, Rhode Island
G L E N D A G . S L O A N E , Washington, D.C.
H E N R Y J. S O M M E R , Philadelphia,Pennsylvania
W I N N I E F. T A Y L O R , Gainesville, Florida
M I C H A E L M. V A N BUSKIRK, Columbus, Ohio
C L I N T O N W A R N E , Cleveland, Ohio
FREDERICK T. W E I M E R , Chicago, Illinois
M E R V I N W I N S T O N , Minneapolis, Minnesota
RACHEL
MARGARET M . MURPHY,
JAMES
COUNCIL
THOMAS R . BOMAR,
RICHARD H . DEIHL,
Miami, Florida, President
Los Angeles, California, Vice President
JAMES A . A L I B E R ,
NORMAN
GENE R. ARTEMENKO,
ROBERT R . M A S T E R T O N ,
Detroit, Michigan
Chicago, Illinois
J. M I C H A E L C O R N W A L L , Dallas, Texas
JOHN R . E P P I N G E R , Villanova, Pennsylvania
JOHN
FRED
M.
JONES,
Fargo, North Dakota
Portland, Maine
T. M O R G A N , N e w York, N e w York
A . PARKER, Monroe, North Carolina
SARAH R . WALLACE, N e w a r k , O h i o
82
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83
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Truth in Leasing
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B E L O W THE B O T T O M L I N E : T H E U S E OF C O N T I N G E N CIES A N D C O M M I T M E N T S BY C O M M E R C I A L B A N K S , b y
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114.
MULTIBANK
DENCE
PROCESSING B A N K H O L D I N G C O M P A N Y A N D MERGER A P P L I -
ON
HOLDING
COMPANIES:
COMPETITION
AND
RECENT
EVI-
PERFORMANCE
IN
BANKING MARKETS,
by Timothy J. Curry and John T.
Rose. Jan. 1982. 9 pp.
CATIONS
S U S T A I N A B L E R E C O V E R Y : S E T T I N G THE S T A G E ,
November
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115.
REMARKS BY C H A I R M A N P A U L A .
VOLCKER, AT
HUMAN RELATIONS A W A R D DINNER,
116.
DIVISIA
DATA,
CISCO, M a r c h 1983.
117.
MONETARY
C O S T S , PRICES, A N D R E T A I L S A L E S ,
PAYMENTS MECHANISM,
AGGREGATES:
A N D HISTORICAL
by
COMPILATION,
BEHAVIOR,
118.
INTEREST
by Glenn Canner. June 1982. 8 pp.
RATES
AND
TERMS
LOANS AT COMMERCIAL BANKS,
July 1983. 114 pp.
A.
THE COMMUNITY REINVESTMENT A C T AND CREDIT
ALLOCATION,
April 1983.
C R E D I T C A R D S IN THE U . S . E C O N O M Y : THEIR IMPACT ON
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VOLCKER,
Only Printed in the
ON
CONSTRUCTION
by David F. Seiders.
July 1982. 14 pp.
119.
STRUCTURE-PERFORMANCE
STUDIES
IN
BANKING:
A N UPDATED SUMMARY AND EVALUATION, b y
Ste-
phen A. Rhoades. Aug. 1982. 15 pp.
120.
CONSUMER EDUCATION
PAMPHLETS
Short pamphlets suitable for classroom
available without
charge.
use. Multiple
copies
Alice in Debitland
Consumer Handbook to Credit Protection Laws
The Equal Credit Opportunity Act and . . . Age
The Equal Credit Opportunity Act and . . . Credit Rights in
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TIONS, by James V. Houpt and Michael G. Martinson.
Oct. 1982. 18 pp.
121.
R E D L I N I N G : RESEARCH A N D F E D E R A L
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by Glenn B. Canner. Oct. 1982. 20 pp.
122. B A N K C A P I T A L T R E N D S A N D F I N A N C I N G , by Samuel
H. Talley. Feb. 1983. 19 pp. Out of print.
123.
F I N A N C I A L T R A N S A C T I O N S WITHIN B A N K
COMPANIES,
by John T. Rose and Samuel
May 1983. 11 pp.
124.
HOLDING
H.
Talley.
I N T E R N A T I O N A L B A N K I N G FACILITIES A N D THE
EU-
RODOLLAR M A R K E T ,
by Henry S. Terrell and Rodney
H. Mills. August 1983. 14 pp.
125.
SEASONAL A D J U S T M E N T OF THE W E E K L Y M O N E T A R Y
AGGREGATES: A M O D E L - B A S E D APPROACH,
by David
A. Pierce, Michael R. Grupe, and William P. Cleveland. August 1983. 23 pp.
126.
DEFINITION A N D M E A S U R E M E N T OF E X C H A N G E M A R KET I N T E R V E N T I O N ,
by Donald B. Adams and Dale
W. Henderson. August 1983. 5 pp.
*127.
U.S.
EXPERIENCE WITH E X C H A N G E M A R K E T INTER-
VENTION:
JANUARY-MARCH
1975,
by Margaret
L.
Greene.
*128.
U . S . EXPERIENCE WITH E X C H A N G E M A R K E T INTERVENTION: SEPTEMBER
1977-OcTOBER 1 9 8 1 , by Marga-
ret L. Greene.
*129.
U.S.
EXPERIENCE WITH E X C H A N G E M A R K E T INTER-
VENTION: O C T O B E R
L. Greene.
1980-OcTOBER 1 9 8 1 , by Margaret
84
130. E F F E C T S OF E X C H A N G E R A T E V A R I A B I L I T Y
ON
IN-
TERNATIONAL T R A D E AND OTHER ECONOMIC VARIA-
by Victoria S .
Farrell with Dean A. DeRosa and T. Ashby McCown.
January 1984. 21 pp.
REPRINTS OF BULLETIN
ARTICLES
Most of the articles reprinted do not exceed 12 pages.
BLES: A R E V I E W OF THE L I T E R A T U R E ,
131.
C A L C U L A T I O N S OF PROFITABILITY FOR U . S . D O L L A R DEUTSCHE
MARK
INTERVENTION,
by Laurence
R.
Jacobson. October 1983. 8 pp.
132.
TIME-SERIES
TWEEN
STUDIES
EXCHANGE
OF
THE
RATES
RELATIONSHIP
AND
BE-
INTERVENTION:
A
R E V I E W OF THE T E C H N I Q U E S A N D L I T E R A T U R E ,
by
Kenneth Rogoff. October 1983. 15 pp.
133. RELATIONSHIPS
AMONG
EXCHANGE
RATES,
INTER-
V E N T I O N , A N D INTEREST R A T E S : A N EMPIRICAL INVESTIGATION,
by Bonnie
Loopesko. November
E.
1983. 20 pp.
134.
S M A L L E M P I R I C A L M O D E L S OF E X C H A N G E
INTERVENTION: A
MARKET
R E V I E W OF THE L I T E R A T U R E ,
by
Ralph W. Tryon. October 1983. 14 pp.
*135.
S M A L L E M P I R I C A L M O D E L S OF E X C H A N G E
MARKET
I N T E R V E N T I O N : A P P L I C A T I O N S TO C A N A D A , G E R M A -
NY, AND JAPAN, by Deborah J. Danker, Richard A.
Haas, Dale W. Henderson, Steven A. Symansky, and
Ralph W. Tryon.
136. T H E E F F E C T S OF F I S C A L POLICY ON THE U . S . E C O N O -
MY, by Darrell Cohen and Peter B. Clark. January
1984. 16 pp.
137. T H E
IMPLICATIONS
FINANCIAL
AND
FOR
BANK
DEREGULATION,
FINANCIAL
MERGER
INTERSTATE
SUPERMARKETS,
POLICY
OF
BANKING,
by Stephen A.
Rhoades. February 1984. 8 pp.
*The availability of these studies will be announced in a
forthcoming B U L L E T I N .
Survey of Finance Companies. 1980. 5/81.
Bank Lending in Developing Countries. 9/81.
The Commercial Paper Market since the Mid-Seventies. 6/82.
Applying the Theory of Probable Future Competition. 9/82.
International Banking Facilities. 10/82.
U.S. International Transactions in 1982. 4/83.
New Federal Reserve Measures of Capacity and Capacity
Utilization. 7/83.
Foreign Experience with Targets for Money Growth. 10/83.
Intervention in Foreign Exchange Markets: A Summary of
Ten Staff Studies. 11/83.
A Financial Perspective on Agriculture. 1/84.
85
Index to Statistical Tables
References
are to pages A3 through A77 although the prefix 'A"
ACCEPTANCES, bankers, 9, 24, 26
Agricultural loans, commercial banks, 18, 19, 20, 25
Assets and liabilities (See also Foreigners)
Banks, by classes, 17-20, 68-73
Domestic finance companies, 37
Federal Reserve Banks, 10
Foreign banks, U.S. branches and agencies, 22, 74-77
Nonfinancial corporations, 36
Savings institutions, 28
Automobiles
Consumer installment credit, 40, 41
Production, 46, 47
BANKERS acceptances, 9, 24, 26
Bankers balances, 17-20, 68, 70, 72 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 34
Rate s 3
Branch banks, 14, 21, 54, 74-77
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 36
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 44
Capital accounts
Banks, by classes, 17, 69, 71, 73
Federal Reserve Banks, 10
Central banks, discount rates, 65
Certificates of deposit, 21, 26
Commercial and industrial loans
Commercial banks, 15, 21, 25, 68, 70, 72
Weekly reporting banks, 18-22
Commercial banks
Assets and liabilities, 17-20, 68-73
Business loans, 25
Commercial and industrial loans, 15, 21, 22, 25
Consumer loans held, by type, and terms, 40, 41
Loans sold outright, 20
Nondeposit fund, 16
Number, by classes, 17, 69, 71, 73
Real estate mortgages held, by holder and property, 39
Time and savings deposits, 3
Commercial paper, 3, 24, 26, 37
Condition statements (See Assets and liabilites)
Construction, 44, 48
Consumer installment credit, 40, 41
Consumer prices, 44, 49
Consumption expenditures, 50, 51
Corporations
Profits and their distribution, 35
Security issues, 34, 64
Cost of living (See Consumer prices)
Credit unions, 28, 40 (See also Thrift institutions)
Currency and coin, 17, 68, 70, 72
Currency in circulation, 4, 13
Customer credit, stock market, 27
DEBITS to deposit accounts, 14
Debt (See specific types of debt or securities)
Demand deposits
Adjusted, commercial banks, 14
Banks, by classes, 17-21, 69, 71, 73
is omitted in this index
Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 23
Turnover, 14
Depository institutions
Reserve requirements, 7
Reserves and related items, 3, 4, 5, 12
Deposits (See also specific types)
Banks, by classes, 3, 17-21, 28, 69, 71, 73
Federal Reserve Banks, 4, 10
Turnover, 14
Discount rates at Reserve Banks and at foreign central
banks (See Interest rates)
Discounts and advances by Reserve Banks
(See Loans)
Dividends, corporate, 35
EMPLOYMENT, 44, 45
Eurodollars, 26
FARM mortgage loans, 39
Federal agency obligations, 4, 9, 10, 11, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation and types and
ownership of gross debt, 31
Receipts and outlays, 29, 30
Treasury financing of surplus, or deficit, 29
Treasury operating balance, 29
Federal Financing Bank, 29, 33
Federal funds, 3, 5, 16, 18, 19, 20, 22, 26, 29
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 38, 39
Federal Housing Administration, 33, 38, 39
Federal Land Banks, 39
Federal National Mortgage Association, 33, 38, 39
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 4, 10, 11, 31
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 37
Business credit, 37
Loans, 18, 19, 40, 41
Paper, 24, 26
Financial institutions
Loans to, 18, 19, 20, 22
Selected assets and liabilities, 28
Float, 4
Flow of funds, 42, 43
Foreign banks, assets and liabilities of U.S. branches and
agencies, 22, 74-77
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 18, 19, 20
Foreign exchange rates, 66
Foreign trade, 53
Foreigners
Claims on, 54, 56, 59, 60, 61, 63
Liabilities to, 20, 53, 54-58, 62, 64, 65
86
GOLD
Certificate account, 10
Stock, 4, 53
Government National Mortgage Association, 33, 38, 39
Gross national product, 50, 51
HOUSING, new and existing units, 48
INCOME, personal and national, 44, 50, 51
Industrial production, 44, 46
Installment loans, 40, 41
Insurance companies, 28, 31, 39
Insured commercial banks, 68-73
Interbank loans and deposits, 17
Interest rates
Bonds, 3
Business loans of banks, 25
Federal Reserve Banks, 3, 6
Foreign central banks and foreign countries, 65, 66
Money and capital markets, 3, 26
Mortgages, 3, 38
Prime rate, commercial banks, 24
Time and savings deposits, 8
International capital transactions of United States, 52-65
International organizations, 56, 57-59, 62-65
Inventories, 50
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 17-20, 28
Commercial banks, 3, 15, 17-20, 21, 39, 68, 70
Federal Reserve Banks, 10, 11
Savings institutions, 28, 39
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 17-20
Commercial banks, 3, 15, 17-20, 21, 25, 68, 70, 72
Federal Reserve Banks, 4, 5, 6, 10, 11
Insured or guaranteed by United States, 38, 39
Savings institutions, 28, 39
MANUFACTURING
Capacity utilization, 44
Production, 44, 47
Margin requirements, 27
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 5
Reserve requirements, 7
Mining production, 47
Mobile homes shipped, 48
Monetary and credit aggregates, 3, 12
Money and capital market rates (See Interest rates)
Money stock measures and components, 3, 13
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 8, 18-20, 28, 31, 39, 40 (See also
Thrift institutions)
NATIONAL defense outlays, 30
National income, 50
OPEN market transactions, 9
PERSONAL income, 51
Prices
Consumer and producer, 44, 49
Stock market, 27
Prime rate, commercial banks, 24
Producer prices, 44, 49
Production, 44, 46
Profits, corporate, 35
REAL estate loans
Banks, by classes, 15, 18-20, 39
Rates, terms, yields, and activity, 3, 38
Savings institutions, 28
Type of holder and property mortgaged, 39
Repurchase agreements and federal funds, 5, 18-20
Reserve requirements, 7
Reserves
Commercial banks, 17, 69
Depository institutions, 3, 4, 5, 12
Federal Reserve Banks, 10
U.S. reserve assets, 53
Residential mortgage loans, 38
Retail credit and retail sales, 40, 41, 44
SAVING
Flow of funds, 42, 43
National income accounts, 51
Savings and loan associations, 8, 28, 39, 40, 42 (See also
Thrift institutions)
Savings deposits (See Time and savings deposits)
Securities (See specific types)
Federal and federally sponsored credit agencies, 33
Foreign transactions, 64
New issues, 34
Prices, 27
Special drawing rights, 4, 10, 52, 53
State and local governments
Deposits, 18-20
Holdings of U.S. government securities, 31
New security issues, 34
Ownership of securities issued by, 18, 19, 20, 28
Rates on securities, 3
Stock market, 27
Stocks (See also Securities)
New issues, 34
Prices, 27
Student Loan Marketing Association, 33
TAX receipts, federal, 30
Thrift institutions, 3 (See also Credit unions, Mutual
savings banks, and Savings and loan associations)
Time and savings deposits, 3, 8, 13, 16, 17-21, 69, 71, 73
Trade, foreign, 53
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 10, 29
Treasury operating balance, 29
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 17, 18, 19, 20
Treasury deposits at Reserve Banks, 4, 10, 29
U.S. government securities
Bank holdings, 16, 17-20, 22, 31, 69, 70, 72
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 10, 11, 31
Foreign and international holdings and transactions, 10,
31, 65
Open market transactions, 9
Outstanding, by type and holder, 28, 31
Rates, 3, 26
U.S. international transactions, 52-65
Utilities, production, 47
VETERANS Administration, 38, 39
WEEKLY reporting banks, 18-22
Wholesale (producer) prices, 44, 49
YIELDS (See Interest rates)
87
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
N E W YORK*
10045
John Brademas
Gertrude G. Michelson
M. Jane Dickman
Anthony M. Solomon
Thomas M. Timlen
Buffalo
14240
Vice President
in charge of branch
John T. Keane
PHILADELPHIA
19105
Robert M. Landis
Nevius M. Curtis
Edward G. Boehne
Richard L. Smoot
CLEVELAND*
44101
William H. Knoell
E. Mandell de Windt
Vacant
Milton G. Hulme, Jr.
Karen N. Horn
William H. Hendricks
William S. Lee
Leroy T. Canoles, Jr.
Robert L. Tate
Henry Ponder
Robert P. Black
Jimmie R. Monhollon
John H. Weitnauer, Jr.
Bradley Currey, Jr.
Martha A. Mclnnis
Jerome P. Keuper
Sue McCourt Cobb
C. Warren Neel
Sharon A. Perlis
Robert P. Forrestal
Jack Guynn
Stanton R. Cook
Edward F. Brabec
Russell G. Mawby
Silas Keehn
Daniel M. Doyle
W.L. Hadley Griffin
Mary P. Holt
Sheffield Nelson
Sister Eileen M. Egan
Patricia W. Shaw
Theodore H. Roberts
Joseph P. Garbarini
William G. Phillips
John B. Davis, Jr.
Ernest B. Corrick
E. Gerald Corrigan
Thomas E. Gainor
Doris M. Drury
Irvine O. Hockaday, Jr.
James E. Nielson
Patience Latting
Robert G. Lueder
Roger Guffey
Henry R. Czerwinski
Robert D. Rogers
John V. James
Mary Carmen Saucedo
Paul N. Howell
Lawrence L. Crum
Robert H. Boykin
William H. Wallace
Caroline L. Ahmanson
Alan C. Furth
Bruce M. Schwaegler
Paul E. Bragdon
Wendell J. Ashton
John W. Ellis
John J. Balles
Richard T. Griffith
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
N e w Orleans
30301
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
K A N S A S CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77252
78295
S A N FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Charles A. Cerino
Harold J. Swart
Robert D. McTeer, Jr.
Albert D. Tinkelenberg
John G. Stoides
Fred R. HenJames D. Hawkins
Patrick K. Barron
Jeffrey J. Wells
Henry H. Bourgaux
William C. Conrad
John F. Breen
James E. Conrad
Paul I. Black, Jr.
Robert F. McNellis
Wayne W. Martin
William G. Evans
Robert D. Hamilton
Joel L. Koonce, Jr.
J.Z. Rowe
Thomas H. Robertson
Richard C. Dunn
Angelo S. Carella
A. Grant Holman
Gerald R. Kelly
* Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016;
Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
88
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