Full text of Federal Reserve Bulletin : March 1987
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VOLUME 73 •
NUMBER 3 •
MARCH 1987
FEDERAL RESERVE
£
v
u
v®
BULLETIN
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Michael Bradfield • S. David Frost
• Griffith L. Garwood • James L. Kichline • Edwin M. Truman
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 Section headed by Mendelle T.
Berenson, the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
179 CHANGES IN THE USE OF
TRANSACTION ACCOUNTS AND
FROM 1984 TO 1986
ers of policies regarding availability of deposited funds, additional regulatory authority to the Federal Reserve to improve the
process of check collection and returns, and
authority to the Federal Reserve to establish mandatory availability schedules, before the House Committee on Banking,
Finance and Urban Affairs, January 27,
1987.
CASH
A comparison of surveys taken in 1984 and
1986 shows changes in the use of transaction media, including checking and savings
accounts, credit cards, electronic payments, and cash.
197 INDUSTRIAL
PRODUCTION
Industrial production increased an estimated 0.5 percent in December.
199 STATEMENTS
TO
CONGRESS
Paul A. Volcker, Chairman, Board of Governors, provides the views of the Board on
important legislative issues, including the
"emergency" need for measures to bolster
the ability of the insuring agencies to deal
with failed or failing bank and thrift institutions, the need for clarifying and expanding
certain securities powers of bank holding
companies, the need for improving the
process of check collection, and the need to
halt the process of erosion of the basic
separation of commerce and banking and
the basic unity between state and federal
banking authorities; Chairman Volcker says
that action in all these areas is consistent
with the desirable longer-run evolution of
the financial system and need not be delayed awaiting more comprehensive legislation, before the Senate Committee on Banking, Housing, and Urban Affairs, January
21, 1987.
205 Wayne D. Angell, Member, Board of Governors, provides the views of the Board on
the issue of delayed availability, specifically
the Expedited Funds Availability Act, and
says that any legislation that addresses this
issue should require disclosure to consum-
209
ANNOUNCEMENTS
New members appointed to Thrift Institutions Advisory Council.
Preliminary figures available on income of
Federal Reserve Banks.
Issuance of revised list of OTC stocks subject to margin regulations.
Hearing set for bank holding company applications to underwrite and deal in certain
securities.
Extension of temporary seasonal adjustment program.
Comment period extended on proposals to
reduce the risks on large-dollar payment
systems; comments sought on concept of
charging a fee for daylight overdrafts subject to the net debit cap and on daylight
overdrafts made on Fedwire; comment requested on a proposed amendment to Regulation Y implementing amendments to the
Change in Bank Control Act.
Change in Board staff.
Admission of five state banks to membership in the Federal Reserve System.
213 LEGAL
DEVELOPMENTS
Various bank holding company, bank service corporation, and bank merger orders;
and pending cases.
A i FINANCIAL
AND BUSINESS
STATISTICS
A3 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics
A69 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND SPECIAL
TABLES
A74 BOARD OF GOVERNORS
AND STAFF
A76 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY
COUNCILS
A78 FEDERAL RESERVE
PUBLICATIONS
BOARD
A8i INDEX TO STATISTICAL
TABLES
A83 FEDERAL RESERVE BANKS,
AND OFFICES
BRANCHES,
A84 MAP OF FEDERAL RESERVE
SYSTEM
Changes in the Use of Transaction Accounts
and Cash from 1984 to 1986
This article was prepared by Robert B. Avery,
Gregory E. Elliehausen, Arthur B. Kennickell,
and Paul A. Spindt of the Board's Division of
Research and Statistics, with the assistance of
Maria Halperin and Phoebe Roaf
Economic activity in the United States is supported by a very large volume of transactions.
The means of payment for these transactions are
principally cash (currency and coin), credit
cards, and accounts with check-writing features
at financial institutions. Although good data on
aggregate quantities of these means of payment
are available, information on how these quantities are used in the economy is limited. To
understand better how Americans acquire cash
and use both cash and other means of payment,
the Board of Governors of the Federal Reserve
System in 1984 commissioned the Survey of
Currency and Transaction Account Usage. A
summary of the findings was reported in the
February 1986 issue of the FEDERAL RESERVE
BULLETIN.
Since 1984, several changes that could affect
the way families pay for their transactions have
occurred. Automated teller machines have become more widely available to consumers, and
the technology for making payments and deposits electronically has improved. Regulatory and
macroeconomic changes, meanwhile, have altered the environment in which households
choose among transaction media. Interest rates
on consumer deposits have been virtually deregulated, and minimum balance requirements have
been eliminated. Also, yields on short-term investments have fallen, and gaps between these
rates and those paid by financial institutions on
interest-bearing checking accounts have narrowed.
To see how these changes have affected the
payment practices of American families, in 1986
the Board commissioned a second survey. The
1986 survey, like the 1984 one, collected information on deposit balances, expenditures out of
accounts with transaction features, uses of credit
cards, and patterns of cash acquisition and use.
By gathering similar data, the 1986 survey not
only showed the changes that had occurred but
also confirmed 1984 findings about the ways
payment practices vary across families with various characteristics. The 1986 survey also incor-
1. Methods of payment by families classified by
selected characteristics, 1986
Percent 1
Income
(dollars)
Less than
10,000
10,000-19,999.
20,000-29,999.
30,000-49,999.
50,000 or
Age of head
(years)
Less than 35 .
35-44
45-54
55-64
65 or more . . .
Race or
national
origin of
head
Caucasian 3 . . .
Nonwhite or
Hispanic . . .
All families
1986
1984
Proportion
of all
families
Cash
Cash
and
money
orders
Cash
and
checks 2
Cash,
checks,
and
credit
cards 2
20
21
18
27
20
6
4
3
16
14
6
3
32
28
15
14
32
52
75
80
14
Family characteristic
1
0
3
%
25
26
14
17
18
8
10
4
2
10
13
8
6
5
5
18
17
15
25
23
61
66
76
68
62
82
5
5
20
71
18
19
23
16
42
100
100
7
6
8
7
19
20
66
67
1. Here and in succeeding tables, percentages may not sum to 100
because of rounding.
2. Checks include personal checks, bank checks, automatic payments, and electronic payments.
3. Here and in succeeding tables, Hispanics are counted separately
from other Caucasians.
180
Federal Reserve Bulletin • March 1987
porated additional and improved questions so
that the information gathered was more complete
and precise than that in 1984. A description of
the 1986 survey and technical information on
how the data were treated are given in the
appendix.
At the most general level, the 1986 survey
showed that consumers' choices among the
transaction media—checks, cash, money orders,
and credit cards—are almost unchanged from
1984 (see table 1). In both years, all families
reported using at least some cash, and the percentage using only cash or money orders remained under 15 percent. However, this general
stability covered some significant changes within
the various means of payment.
This article first presents findings on how
the holding and the use of transaction accounts
by families changed between 1984 and 1986.
Next, it describes survey evidence on how credit card and electronic payment use changed.
Then it presents findings on changes in the use
of cash between 1984 and 1986. Finally, it summarizes conclusions about the data. Although
not the focus of the discussion, data on the
variability of behavior across families classified
by various characteristics are also presented in
most tables.
TRANSACTION ACCOUNTS
PA YMENT PA TTERNS
AND
GENERAL
Many of the changes between 1984 and 1986
should have increased the attractiveness of
checking accounts to consumers. In January
1985, the regulatory minimum balance requirement for "Super N O W " accounts, which offer
unlimited check-writing privileges and pay an
unregulated market interest rate, was lowered
from $2,500 to $1,000. In January 1986, this
requirement was eliminated, as was the
5VA percent ceiling on regular NOW account
interest rates. From mid-1984 to mid-1986, shortterm market interest rates fell almost 4 percentage points, and the gap between typical interest
rates paid on NOW account balances and those
paid on other liquid investments narrowed from 4
percentage points to less than 1 percentage point.
Meanwhile, many financial institutions adopted
new pricing practices, effectively "unbundling"
services by charging fees for check clearing and
other transactions while paying a market interest
rate on account balances. These changes reduced consumers' incentives to manage checking account balances actively, transferring funds
out to earn higher interest and moving funds in as
needed for transactions. The changes should also
1. Methods of payment as a percentage of aggregate household expenditures
1984
1986
Credit cards
Money orders
1
• Other checking
7
Money orders
2
Other checking
9
Changes in the Use of Transaction Accounts and Cash from 1984 to 1986
181
2. Monthly use of money market accounts and savings accounts by families classified by selected
characteristics, 1986
Proportion of all
families
(percent)
Families
owning
these
accounts
(percent)
Income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
20
21
18
27
14
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or more
Race or national
origin of head
Caucasian
Nonwhite or Hispanic .
Family characteristic
Balance (dollars)1
Median
36
47
61
70
87
5,746
6,803
8,062
7,729
31,217
1,965
898
1,700
2,675
9,800
25
26
14
17
18
62
55
62
60
60
4,455
9,249
10,072
20,977
20,764
82
18
62
48
100
100
All families
1986
19843
Mean
59
69
Average size of withdrawal (dollars) 2
Mean
ratio of
withdrawals
to
income
(percent)1
Median
Mean
Median
28
38
17
33
34
3
4
3
3
5
3
2
1
2
2
389
216
585
660
1,548
50
126
194
109
481
60
20
8
10
16
975
1,925
3,352
2,500
9,975
31
28
32
38
24
3
3
6
3
6
2
2
2
2
3
712
703
341
922
977
125
133
101
132
321
12
9
8
14
55
13,921
2,213
3,000
1,001
29
40
4
3
2
2
802
445
150
125
20
9
12,261
13,664
2,500
3,107
30
18
4
3
2
1
736
1,322
138
401
19
13
have encouraged consumers to consolidate their
funds in fewer accounts, particularly if the size of
service charges decreases as account balances
increase.
Activity
Data from the 1984 and 1986 surveys support
some but not all of these expectations. The share
of monthly family expenditures made by six
major means of payment, displayed in chart 1,
changed little from 1984 to 1986. The most significant change was that, in 1986, families used their
main checking account—that is, the checking
account the family used most frequently—for a
smaller, rather than a larger, percentage of their
total spending than they had in 1984. However,
other findings, which are discussed below, are
consistent with the conjecture that checking accounts, in comparison with savings and money
market accounts (MMDAs and MMMFs), were
more attractive to consumers in 1986 than in
1984.
The survey data show a reduction in the percentage of families owning savings and money
market accounts and a decline in balances held in
Number of
withdrawals 2
Mean
1. For account owners.
2. For families using the account. Withdrawals are net of transfers,
cash withdrawals, and investments.
Account
Owners
writing
checks
(percent)
3. Dollar amounts for 1984 are computed in 1986 dollars.
these accounts (see table 2). Data on monetary
aggregates, however, show account holdings—
which include nonhousehold balances—to have
increased over the period. This inconsistency
suggests that the survey data on outstanding
balances contain some measurement error. For
example, in both surveys, some families apparently included time deposits with savings and
money market accounts or the latter accounts
with secondary checking accounts, distorting
survey estimates. Expenditure data, which are
largely unaffected by measurement error in the
account balances, are believed to be considerably more accurate. The surveys suggest that in
both 1984 and 1986 savings and money market
accounts had limited roles in transactions. Moreover, aggregate household expenditures accounted for by payments out of savings and money
market accounts declined over the two-year period. Indeed, a 21 percent real decline in the
reported dollar amount transferred between
these accounts and checking accounts (not
shown) reinforces the conclusion that there was
a diminished role for money market and savings
accounts as temporary repositories for funds not
needed for transactions.
182
Federal Reserve Bulletin • March 1987
(mostly interest-bearing NOW and Super NOW
The data show little evidence of the expected
accounts) over the two years. As measured by
increased concentration of balances or expendithe surveys, however, total estimated family
tures in families' main checking accounts. In
checking account balances—driven by a threefact, from 1984 to 1986 the average account balfold increase of funds in secondary accounts—
ance fell, and payments made from these accounts
increased almost 28 percent in real terms from
as a percentage of income fell almost 6 percent1984 to 1986. This increase is within 3 percentage
age points (see table 3). Other measures of
points of the aggregate growth rate of the sum of
activity, such as the average size of a check and
other checkable deposits (which are mostly held
the average number of checks written per month,
by families) and the estimated family component
were virtually unchanged over the two years.
of demand deposits. Over the same period, the
The decline in the use of savings and money
survey data show an 8 percent decline in the total
market accounts was offset by an increase in the
payments made from checking accounts. The net
use of families' secondary checking accounts
effect was that average withdrawals from all
rather than their main accounts. The percentage
checking accounts fell from 74 percent of averof families owning secondary checking accounts
age checking account balances in 1984 to 54
increased from 1984 to 1986, and these accounts
percent in 1986. Thus total family checking acwere used more actively in 1986 than in 1984 (see
counts in the survey, which as of June 1986 held
table 4). Although families reported a decline in
slightly less than half of aggregate checking acthe average total number of accounts at financial
count balances, increased in importance as vehiinstitutions, the number of checking accounts
cles for family saving and diminished in importhey owned rose slightly.
tance as media for transactions.
On the surface, these findings on expenditures
may appear inconsistent with data on real
Interest Payments
and Service
Charges
changes in aggregate balances in checking accounts, which show increases of 9 percent in
Evidence shows that some changes in bank interdemand deposits (mostly non-interest-bearing)
est payments and service charges had resulted
and 37 percent in other checkable deposits
3. Monthly use of main checking accounts by families classified by selected characteristics, 1986
Account balance
(dollars)1
Proportion of all
families
(percent)
Families
owning
these accounts
(percent)
Mean
Median
Income (dollars)
Less than 1 0 , 0 0 0 . . . .
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
20
21
18
27
14
64
80
90
94
99
849
1,009
1,025
1,373
2,1%
400
400
558
901
1,500
90
99
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or more
25
26
14
17
18
79
83
91
93
85
920
1,271
1,253
1,593
1,514
500
500
800
900
1,096
%
82
91
1,311
18
58
100
100
85
87
Family characteristic
Race or national
origin of head
Caucasian
Nonwhite or
Hispanic
All families
1986
19843
Number of checks 2
Average size of
check (dollars) 2
Mean
ratio of
withdrawals
to
income
(percent)2
Mean
Median
Mean
Median
10
15
18
18
22
9
10
13
15
20
137
107
100
140
181
52
58
53
75
88
114
68
47
48
41
98
95
98
98
16
21
19
14
14
13
16
15
10
10
87
149
151
170
114
58
63
66
68
77
62
52
54
55
83
700
98
17
14
130
65
61
1,143
450
93
14
12
153
74
63
1,291
1,749
650
580
97
94
17
16
14
14
133
151
65
78
61
67
1. For account owners.
2. For families using the account. Withdrawals are net of transfers,
cash withdrawals, and investments.
Owners
writing
checks
(percent)
%
99
99
3. Dollar amounts for 1984 are computed in 1986 dollars.
Changes in the Use of Transaction Accounts and Cash from 1984 to 1986
183
4. Monthly use of other checking accounts by families classified by selected characteristics, 1986
Proportion of all
families
(percent)
Income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
20
21
18
27
14
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or more
Race or national
origin of head
Caucasian
Nonwhite or Hispanic
Family characteristic
Mean
Median
Mean
Median
Mean
ratio of
withdrawals
to
income
(percent)2
88
79
73
65
85
7
8
10
14
13
6
3
5
8
10
45
370
130
117
237
57
138
58
63
158
47
92
21
18
42
500
650
890
1,000
1,750
64
77
84
85
58
10
8
13
12
16
7
4
11
11
5
151
255
142
148
265
58
180
125
79
44
26
36
57
31
31
6,551
2,324
814
591
75
75
11
14
7
10
185
193
86
58
35
39
6,162
2,683
814
695
75
60
11
9
7
6
186
316
86
130
36
31
Balance (dollars)1
Families
owning
these
accounts
(percent)
Median
6
12
15
33
46
830
2,623
4,585
9,787
4,251
500
939
794
814
1,000
25
26
14
17
18
19
20
29
29
16
1,269
1,359
2,017
6,588
27,624
82
18
24
11
100
100
All families
1986
19843
Mean
22
20
1. For account owners.
2. For families using the account. Withdrawals are net of transfers,
cash withdrawals, and investments.
from the deregulation of checking accounts by
mid-1986, although these changes were not as
dramatic as one might have expected (see table 5).
The percentage of families reporting the
payment of fees or service charges on their
main checking account increased almost 6 per5. Location, interest payments, and service charges
for main checking account, 1984 and 1986
Percent
Item
Location of account
Commercial bank
Savings and loan
Credit union or brokerage house
Interest and service charge
payments
Interest only
Service charges only
Neither interest nor service charges
Both interest and service charges
Balance in account kept higher to avoid
fees
Account
characteristic
Interest rate dependent on balance 1
Service charge 2
Dependent only on account balance —
Dependent only on number of checks . .
Dependent on both checks and account
balance
Flat or dependent on other factors
Overdraft protection
n.a. Not available.
1. For all accounts paying interest.
2. For all accounts paying service charges.
Owners
writing
checks
(percent)
Number of checks 2
Average size of
check (dollars) 2
3. Dollar amounts for 1984 are computed in 1986 dollars.
centage points, from 41 percent to 47 percent,
but the percentage receiving interest was unchanged at 39 percent. Additional evidence
shows that consumers responded to the pricing
changes that occurred. Almost one-half of the
1986 families reported keeping higher balances in
their main checking accounts than they would
otherwise have done to avoid or reduce fees.
Indeed, both the mean and median balances held
in accounts with service charges rose substantially between 1984 and 1986 so that the share of
total main checking account balances held in
these accounts almost doubled, from 22 percent
to 38 percent (not shown). Moreover, at least
some of these new balances appear to be "idle,"
because the share of the total main checking
account expenditures made from accounts with
service charges increased only half as much as
their share of balances.
1984
1986
72
20
8
67
23
11
29
31
31
10
27
35
26
12
n.a.
49
n.a.
74
34
24
30
31
USE OF CREDIT CARDS, MONEY
AND ELECTRONIC
PAYMENTS
22
20
n.a.
24
16
43
Credit
ORDERS,
Cards
The use of credit cards as a method of payment
rose substantially from 1984 to 1986: total month-
184
Federal Reserve Bulletin • March 1987
6. Monthly use of credit cards by families classified by selected characteristics, 1986
Family characteristic
Families
owning
credit
cards
(percent)
Number of cards
per family 1
Mean
Median
Families
using
credit
cards
(percent) 1
Income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
42
59
80
83
97
68
69
83
71
69
Mean
Median
65
76
81
89
87
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or more
Number of transactions
per family 2
85
88
77
84
71
Race or national origin of head
Caucasian
Nonwhite or Hispanic
Credit card payment
Revolves
Does not revolve
practice3
83
74
100
100
84
79
All families
1986
1984"
1. For credit card owners.
2. For families using credit cards during the month.
ly credit card charges were more than 27
percent higher in 1986 than in 1984 in real terms.
This increase stemmed primarily from an increase in the proportion of credit card owners
that used credit cards in the preceding month,
although average monthly credit card charges
per family also increased slightly (table 6). The
rates for credit card ownership were the same in
1986 as they had been two years before, and the
ratio of charges to income for users and their
average number of charges per month were virtually unchanged.
Credit cards, however, are not simply a substitute for cash and checks as a means of payment.
Banks and stores typically offer their credit card
holders a second option. Besides using the account as a means of payment by paying the
balance in full at the end of the statement period,
the card owner can "revolve" the account by
making partial payment and financing the balance. Data from the 1986 survey, with information from other surveys, permit analysis of
changes in the use of credit cards as a means of
payment and a source of debt financing. Overall,
about half of all holders of bank and store credit
cards reported revolving their accounts in 1986,
82
76
3. For families who own bank or store credit cards.
4. Dollar amounts for 1984 are computed in 1986 dollars.
about the same proportion as in the 1977 and
1983 surveys of consumer finances. Considering
the apparent stability in the proportion of families that revolve their accounts, much of the rise
in credit card debt since 1984 may reflect increased use of cards as a means of payment
rather than as a source of credit per se.
Money
Orders
Both surveys collected limited information on
the use of money orders. In the aggregate, money orders are a relatively unimportant means of
payment (see table 7). However, some groups of
the population, particularly nonwhites and Hispanics and low-income families, used money
orders for a significant proportion of expenditures. Some evidence also suggests that the use
of money orders has increased since 1984.
Electronic
Fund
Transfer
Services
While the technology to send and receive payments electronically has improved in recent
years, data on consumer acceptance of such
Changes in the Use of Transaction Accounts and Cash from 1984 to 1986
185
6. Continued
Amount per
transaction
(dollars) 2
Total amount charged
per family
(dollars) 2
Total amount of
monthly transactions
to monthly income 2
Mean
Median
Mean
Median
Mean
Median
Families
revolving
credit
card
accounts
(percent) 3
Income (dollars)
Less than 10,000
10,000-19,999
20.000-29,999
30.000-49,999
50,000 or more
44
70
44
60
86
29
31
20
39
47
158
207
182
330
867
60
100
115
175
550
31
17
9
11
15
17
7
6
6
9
59
55
36
60
33
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or more
53
65
80
67
47
30
36
35
41
38
297
388
421
522
258
150
150
157
300
120
15
11
14
17
16
8
5
5
10
8
60
53
42
52
30
Race or national origin of head
Caucasian
Nonwhite or Hispanic
61
69
35
50
390
278
170
100
15
12
7
7
46
62
61
68
30
40
319
453
150
200
13
16
7
9
100
0
62
59
35
33
374
360
150
165
14
13
7
7
49
n.a.
Family characteristic
Credit card payment
Revolves
Does not revolve
practice3
All families
1986
19844
services have been limited. Information collected in surveys of consumer attitudes conducted in
1981 and 1983 is comparable to data from the
1984 and 1986 surveys. The data from the 1986
survey are summarized in table 8. The data show
no increase in the growth of direct deposit to
family accounts from 1981 to 1986 and only small
growth in the proportion of families having automatic payment of a mortgage, a utility bill, or
another payment.
Automated teller machines (ATMs) are now
widely available. More than 61,000 were estimated to have been installed by the end of 1985.
ATMs generally provide consumers with greater
7. Monthly use of money orders by families classified by selected characteristics, 1986
Proportion of all
families (percent)
Families using
money orders
(percent)
Average number
of money orders1
Average size of
money order
(dollars)1
Mean ratio of
money order
expenditures to
family income
(percent)
Income (dollars)
Less than 10,000
10,000-19,999
20,000-29.999
30,000-49,999
50,000 or more
20
21
18
27
14
20
20
11
11
4
3
2
4
2
3
72
117
111
334
184
43
23
17
20
14
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or more
25
26
14
17
18
21
17
9
8
8
3
3
3
2
3
143
218
79
85
119
23
32
18
19
44
Race or national origin
of head
Caucasian
Nonwhite or Hispanic
82
18
9
33
3
3
170
129
25
30
100
100
14
15
3
2
153
147
27
16
Family characteristic
All families
1986
19842
1. For families using money orders.
2. Dollar amounts for 1984 are computed in 1986 dollars.
186
Federal Reserve Bulletin • March 1987
8. Use of electronic fund transfer services by
families classified by selected characteristics,
1986'
Percent
Uses direct
deposit 2
Uses automatic
payment 2
Income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
29
33
30
34
34
19
17
27
36
40
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or older
23
27
24
31
59
24
27
44
37
14
Race or national origin
of head
Caucasian
Nonwhite or Hispanic . . .
34
19
28
28
All families
32
28
Family characteristic
1. Comparable figures are not available for 1984.
2. For families owning at least one account at a financial institution.
flexibility in gaining access to their accounts and
obtaining cash than do traditional bank offices.
The proportion of account-owning families with
ATM access cards doubled between 1981 and
1983. Since 1984, the proportion of families owning ATM cards has not changed significantly, but
the proportion using ATMs has increased 8 percentage points (see table 9). The use of ATMs
appears to be sensitive to relative prices: families
that must pay more for an ATM transaction than
for a check are less likely than other families to
use an ATM. Among those who use ATMs,
however, families with higher ATM fees do not
use ATMs less frequently than other families.
Many of these ATMs are parts of networks,
which allow consumers to use ATMs of other
financial institutions. These networks have
grown rapidly. Until recently, they existed only
in a few large metropolitan areas. In 1986, 56
percent of families with ATM cards reported
having access to ATMs that were part of a
network, and about half of these families used
another institution's ATM at some time.
THE ACQUISITION
AND USE OF CASH
Although cash is a highly suitable means of
payment for many transactions, little information
on how it is acquired and used in the United
States is available. Since 1984, cash held outside
the U.S. Treasury, Federal Reserve Banks, and
commercial banks has grown less rapidly than
checkable deposits at financial institutions. To
determine if this less rapid growth reflects a
change in the way people pay for goods and
services, one needs a better understanding of how
cash is used in the economy.
The 1984 and 1986 surveys provide much
information on patterns of cash acquisition and
use. Although the 1984 survey collected some
information on sources and methods used to
acquire cash, these data could not be used to
assess the check-processing burden and other
costs associated with individuals' cash acquisition practices. Information that can be used for
this purpose was obtained in 1986. The 1986
survey also provided information on cash held
for nontransaction purposes, which the 1984
survey did not.
In this part of both surveys, the unit of observation was the individual respondent rather than
9. Monthly use of automated teller machines (ATMs)
by families classified by selected characteristics,
1986
Families
owning
ATM
access
card1
(percent)
Owners
using
ATM to
withdraw
cash
(percent)
Income (dollars)
Less than 1 0 , 0 0 0 . . . .
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
32
33
46
55
60
Age of head (years)
Less than 35
35-44
45-54
55-64
65 or older
54
55
56
32
28
Family characteristic
Race or national
origin of head
Caucasian
Nonwhite or
Hispanic
ATM transaction fee
More than check . . .
Same as check
Less than check
All families
1986
1984
Number of ATM
cash withdrawals 2
Mean
Median
68
67
54
72
79
5
4
6
5
4
4
4
4
4
4
82
71
74
58
34
6
5
4
4
4
4
4
3
2
4
45
70
5
4
50
60
4
4
100
100
100
40
75
80
6
5
4
5
4
4
46
44
69
61
5
6
4
4
1. For families owning at least one transaction account.
2. For families who used an ATM to withdraw cash during the
month.
Changes in the Use of Transaction Accounts and Cash from 1984 to 1986
the family because respondents were expected to
have more accurate knowledge of their own cash
transactions than of the transactions of other
family members. Thus the reference population
for this part of the surveys was all adult U.S.
residents.
Sources
and Methods
of Cash
2. Percentage of individuals using various sources
of cash
3. Percentage of aggregate cash acquired, by source
1986
Acquisition
According to the 1986 survey, most of the cash
acquired by individuals for use in transactions is
withdrawn from the cash held by depository
financial institutions. Most individuals, about 61
percent, acquired cash at a financial institution,
by cashing a check or by withdrawing funds from
their savings account (see chart 2). Another 13
percent of individuals acquired cash from an
ATM. These two sources together provided
about 80 percent of the total cash acquired by all
individuals (see chart 3). The cash inventories of
business enterprises, stores and employers, provided about 14 percent of the cash acquired by
individuals.
The 1986 survey also showed that check cashing is the primary method used by individuals to
acquire cash (see tables 10 and 11). About 24
1986
187
percent of the population acquired currency by
cashing a check drawn on one of their own
accounts and 47 percent by cashing a check
received from someone else. The total volume of
checks cashed by individuals to acquire currency
represented a substantial portion of the total
number of checks cleared through the U.S.
check-processing system. At the time of the
survey, individuals cashed an estimated 550 million checks per month to acquire currency.
These checks amounted to nearly 16 percent of
the estimated total monthly volume of items
processed through the check-clearing system at
that time. The cost of this processing burden was
significant: assuming check production and processing costs averaged at least 25 to 50 cents per
item, the total cost of checks used to obtain cash
was between $137 million and $257 million per
month, 0.2 percent to 0.4 percent of the amount
of cash acquired using checks.
The Rate of Cash Acquisition
and
Use
To use cash for transactions, individuals must
maintain an inventory of it that they deplete by
making payments and replenish periodically by
acquiring more cash. Graphically, the time pro-
188
Federal Reserve Bulletin • March 1987
file of a person's cash inventory will have a
sawtooth pattern, with each tooth representing one cash-acquisition occasion: the distance
between teeth is determined by the frequency of
cash acquisitions, and the size of each tooth is
determined by the amount obtained on a representative occasion (see chart 4). The 1984 and
1986 surveys asked respondents about cash acquisition and use in two ways: (1) What was the
respondent's "typical" behavior? and (2) What
was the behavior on the most recent occasion of
obtaining cash? Although the estimates of typical
behavior and of most recent behavior are similar,
the two measures reflect different concepts (see
appendix).
According to the survey information on typical
behavior, in 1986 individuals acquired cash less
frequently, but they acquired somewhat larger
amounts each time than they did in 1984 (see
table 12). In 1986, the average time between cash
acquisitions was 16 days, whereas in 1984 it was
12 days. The estimated average amount of cash
individuals had on hand before they obtained
more was $36 in 1986, the same as in 1984; but in
10. Distribution of individuals acquiring cash and of
aggregate cash acquired, by source and method
of acquisition, 19861
Percent
Source and method of
cash acquisition
Individuals 2
Aggregate cash
Financial institution
Check drawn on own
account
Check drawn on other
account
Other
17
16
37
8
47
6
ATM
13
10
6
3
4
4
Store
Check drawn on own
account
Check drawn on other
account
Employer or own business
Check drawn on own
account
Check drawn on other
account
Other
1
0
5
1
7
1
Family member or friend
Check
Other
3
7
3
3
100.0
Total
100.0
1. Comparable figures are not available for 1984.
2. Items do not add to 100 percent because of rounding.
11. Method most recently used to acquire currency by individuals classified by selected characteristics, 1986
Percent
Method most recently used
Individual characteristic
Proportion of
all respondents
Bank
ATM
Own
check
Other
check
Withdrawal
slip
Family member
or friend
Check
Employer
or own business
Store
Other
Own
check
Other
check
Cash
payment
Own
check
Other
check
Family income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
17
21
17
31
14
12
16
19
18
21
33
41
42
35
32
6
9
7
8
7
8
9
13
15
20
9
0
3
2
2
6
6
5
8
8
1
0
0
1
1
7
8
4
3
2
3
2
0
1
0
3
7
5
6
7
Age (years)
Less than 35
35-44
45-54
55-64
65 or more
36
21
11
18
16
7
15
20
26
30
36
36
35
40
36
9
5
3
8
11
14
17
21
9
5
1
2
3
5
4
9
6
11
7
1
1
0
1
0
0
10
4
3
0
0
3
0
0
1
1
6
10
3
2
6
4
5
0
2
6
Sex
Male
Female
43
57
17
17
43
32
5
9
11
14
3
3
6
7
1
1
5
5
1
1
4
7
4
3
Race or national origin
Caucasian
Nonwhite or H i s p a n i c . . . .
82
18
18
12
36
38
7
10
14
8
1
9
8
2
1
1
3
11
1
0
7
2
3
7
Family ownership
accounts
None
One or more
10
90
0
17
48
36
12
7
0
15
7
3
7
7
0
1
10
4
0
1
1
7
15
2
100
17
37
8
13
3
7
1
5
1
6
4
11 I
2
2 1
3 1
1
of
All respondents
1
1
Changes in the Use of Transaction Accounts and Cash from 1984 to 1986
189
12. Typical behavior of individuals, classified by selected characteristics, in obtaining, holding,
and spending cash, 1986
Proportion of
respondents
(percent)
Mean
Median
Mean
Median
Mean
Median
Mean
Median
Mean
Median
Family income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
17
21
17
31
14
30
11
23
10
11
15
7
7
7
7
23
29
44
32
60
5
7
10
10
15
194
139
152
140
130
100
70
100
65
80
331
440
433
514
473
186
270
300
300
326
120
98
120
102
126
62
51
70
45
60
2.8
4.5
3.6
5.0
3.8
Age (years)
Less than 35
35-44
45-54
55-64
65 or more
36
21
11
18
16
15
10
12
19
25
7
7
7
8
15
16
32
47
68
42
5
7
10
10
15
128
127
161
173
196
50
65
100
100
100
473
486
484
221
346
261
261
400
271
276
80
%
128
154
141
40
44
65
60
88
5.9
5.1
3.8
1.4
2.5
Sex
Male
Female
43
57
12
19
7
7
51
24
13
5
184
125
100
60
571
355
350
217
143
87
70
43
4.0
4.1
Race or national origin
Caucasian
Nonwhite or Hispanic
82
18
13
28
7
7
35
41
10
7
144
177
86
100
437
494
261
326
107
129
55
69
4.1
3.8
Family ownership
accounts
None
One or more
10
90
39
14
15
7
36
35
10
10
265
139
200
75
673
430
521
261
169
104
150
51
4.0
4.1
100
100
16
12
7
7
36
36
10
18
150
142
93
90
448
458
274
298
111
107
56
63
4.1
4.2
Individual characteristic
Days between
acquisitions
Dollars on
hand before
acquisition
Dollars acquired
Monthly cash
expenditure
(dollars)1
Average
balance
(dollars)1
Monthly
turnover2
of
All respondents
1986
19843
1. See appendix for definition.
2. Defined as the ratio of mean monthly cash expenditure divided
by the mean average balance.
1986 the average amount they acquired was an
estimated $150, compared with $142 in 1984.
These patterns are depicted in chart 4, which
compares the 1986 and 1984 time profiles of the
average cash inventory behavior of individuals.
The net consequence of these changes was that
individuals appeared to hold a larger average real
amount of cash in 1986 than in 1984. The estimates of the average cash holdings per individual
showed an increase from $107 in 1984 to $111 in
1986. These findings may reflect a response to
the decline in interest rates over the period,
which reduced the interest income forgone by
holding cash.
The survey data about the most recent occasion on which cash was acquired generally confirm these patterns (see table 13). Estimates
based on these data, however, suggest a larger
increase in the amount of cash acquired and in
the average cash holdings (from $80 in 1984 to
$104 in 1986).
3. Dollar amounts for 1984 are computed in 1986 dollars.
The two types of survey information are ambiguous concerning how individuals' monthly
cash expenditure on goods and services changed
between 1984 and 1986. The estimates in table 12
suggest that cash expenditure per individual decreased slightly, but the estimates in table 13
suggest the opposite.
The survey evidence does suggest, however,
4. Average patterns of cash inventory for individuals
Days
190
Federal Reserve Bulletin • March 1987
13. Most recent behavior of individuals, classified by selected characteristics, in obtaining, holding,
and spending cash, 1986
Dollars on
hand before
acquisition
Monthly cash
expenditure
(dollars)1
Average
balance
(dollars)1
Proportion of
respondents
(percent)
Mean
Median
Mean
Median
Mean
Median
Mean
Median
Mean
Median
Family income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
17
21
17
31
14
26
12
17
11
11
14
8
8
7
7
62
54
61
51
77
8
10
15
13
17
324
135
181
168
192
100
75
100
75
100
324
425
498
546
677
225
257
304
339
384
157
66
115
87
120
57
39
57
43
68
2.1
6.4
4.3
6.2
5.6
Age (years)
Less than 35
35-44
45-54
55-64
65 or more
36
21
11
18
16
14
10
13
16
21
7
7
8
10
14
41
57
53
110
50
10
10
10
15
20
1%
138
172
209
257
50
60
100
118
150
432
551
482
549
500
244
304
306
406
304
94
82
103
131
130
38
38
58
53
67
4.6
6.7
4.7
4.2
3.8
Sex
Male
Female
43
57
14
15
8
8
76
46
20
10
262
142
150
50
618
399
345
250
145
74
72
37
4.3
5.4
Race or national origin
Caucasian
Nonwhite or Hispanic
82
18
13
21
8
9
53
84
10
13
175
278
100
100
494
489
304
304
95
145
47
67
5.2
3.4
Family ownership
accounts
None
One or more
10
90
32
13
14
8
73
57
7
12
271
189
190
100
385
508
300
304
119
106
73
48
3.2
4.8
61
13
16
7
10
5
77
15
17
7
240
62
120
40
558
429
342
244
133
37
68
23
4.2
11.6
7
10
9
17
7
8
45
25
12
7
208
171
200
48
632
343
406
200
88
83
76
33
7.2
4.1
10
17
7
56
5
96
30
275
174
54
20
5.1
100
100
15
12
8
8
59
36
12
16
194
155
100
84
493
447
304
292
104
80
51
44
4.7
5.6
Individual characteristic
Days between
acquisitions
Dollars acquired
Monthly
turnover 2
of
Where cash last obtained
Bank
ATM
Employer or own
business
Store
Other family member or
friend
All respondents
1986
19843
1. See appendix for definition.
2. Defined as the ratio of mean monthly cash expenditure divided
by the mean average balance.
3. Dollar amounts for 1984 are computed in 1986 dollars.
that the usage rate of cash declined between 1984
and 1986. The usage rate, or turnover, of cash is
a ratio defined as total spending out of cash
during some interval of time divided by average
cash holdings during the same interval. Turnover
measures the efficiency of cash in making payments: a higher turnover implies that each dollar
outstanding supports a larger volume of transactions. Economic reasoning suggests that turnover should rise when interest rates increase
(giving individuals an incentive to economize on
their cash holdings by keeping more of their
money in interest-bearing accounts), and it
should fall when interest rates decrease (lessening the incentive to economize on cash holding).
Thus the decline in the estimated turnover of
cash may reflect individuals' responses to the
lowering of interest rates that occurred between
1984 and 1986.
The "Missing"
Cash
One of the most striking findings of the 1984
survey was that, in the aggregate, adult U.S.
residents held only an estimated 11 to 12 percent
of the stock of currency and coin circulating
outside banks at the time. This finding implies
that more than 88 percent of the U.S. currency
stock outside the vaults of depository institutions
was held—apart from some that may be lost and
unaccounted for—by other agents such as business enterprises, persons in other countries, and
Changes in the Use of Transaction Accounts and Cash from 1984 to 1986
persons less than 18 years of age. Because children or legitimate businesses are not likely to
have held more cash in the aggregate than all
adults, this finding suggests that a large percentage of the U.S. currency stock was held for
purposes not directly related to measured domestic activity.
This finding is confirmed by the evidence from
the 1986 survey. Given the size of the sampled
population at the time of the survey, the estimates of average cash holdings per individual in
tables 12 and 13 imply that adult U.S. residents
in the aggregate held about $20 billion in cash,
which they used for transactions. This total
amounted to about 11 percent of the stock of
currency or coin in circulation outside banks,
which was $177.4 billion at the time of the
survey. Thus, in 1986 as in 1984, a large percentage of the U.S. currency stock was apparently
held in unreported hoards, "underground" for
illegitimate purposes, or offshore.
To assess the possibility that U.S. adults
hoarded significant amounts of cash that were
not used for transactions, the 1986 survey collected information about how much cash was
held for purposes other than everyday expenses.
In the aggregate, these holdings amounted to an
estimated $3.3 billion. Assuming a statistical
confidence interval of 95 percent, these cash
holdings combined with the cash individuals held
for transactions represented in total only about
12 to 14 percent of the stock of currency and coin
in circulation outside banks. However, because
individuals who were hoarding large amounts of
cash were probably less likely to respond to the
survey questions, the survey estimate is presumed to understate the actual amount of cash
hoarded domestically.
A rough estimate of the amount of cash held
for illegal transactions can be made by extrapolating estimates, published in Income Tax Compliance Research in 1983 by the Internal Revenue Service, of the amount of income derived
from tax avoidance and other illegal activities. If
one assumes that all of this income was paid in
cash, and the cash involved turned over 4.7 times
each month (the same as estimated for the legitimate holdings of individuals in table 12), the
amount of cash held for these transactions would
have amounted to about $9 billion, or less than
one-half the total amount held by U.S. residents
191
for legitimate purposes. This amount, however,
would be larger if the cash involved were used
less actively or smaller if some illegal transactions were paid for with means other than cash.
Anecdotal evidence suggests that the amount
of U.S. cash held abroad may be large, but no
quantitative information with which to confirm
or refute speculation about the amount is available. The conjecture that most of the "missing"
cash is held abroad would be more appealing if
one could show that the proportion unaccounted
for had changed over time, perhaps in response
to movements in exchange rates or secular
changes in the international role of the U.S.
dollar. The survey estimates, however, suggest
that the missing proportion did not change between 1984 and 1986 despite the sharp depreciation of the dollar against Japanese and European
currencies.
Precisely identifying the holders of most of the
stock of cash has not been possible. However,
data collected in 1944 by the U.S. Department of
Agriculture for the Federal Reserve Board suggest that, at that time, when the dollar was
emerging as the dominant international currency,
U.S. family holdings of currency accounted for a
proportion of circulating currency that was remarkably consistent with the 1984 and 1986 data.
While inconclusive, the evidence suggests that
the percentage of cash unaccounted for, although
apparently large, may at least have been stable.
SUMMARY
OF
FINDINGS
This article has presented some preliminary results from a comparison of the two surveys of
currency and transaction account usage. Between 1984 and 1986, the use of consumer checking accounts for saving increased, and their use
for transactions decreased. These changes may
reflect consumers' responses to the decline in
open market rates and the narrowing of gaps
between these rates and the rates paid on consumer checking deposits. Much of the growth in
credit card charges during the two-year period
appears to be the result of greater use of credit
cards as a means of payment rather than as a
source of debt financing. Individuals increased
their average holdings of cash, and the turnover
of cash declined as interest rates declined. Final-
192
Federal Reserve Bulletin • March 1987
ly, the 1986 survey confirmed the 1984 finding
that, in the aggregate, adult individuals held only
about one-eighth the total U.S. currency stock.
Overall, these findings suggest that portfolio
considerations became more important, and
transaction motives less important, determinants
of the way U.S. consumers managed their checking account and cash balances as a result of the
regulatory and macroeconomic changes that occurred between 1984 and 1986.
APPENDIX
Because the sample is restricted to families with
telephones, single individuals and poor individuals are probably sampled less frequently than
their proportion in the general population. To the
extent that single households and other households are equally likely to have telephones, an
individual in a single household is more likely to
be selected than any person in a larger household. Insofar as the behavior of groups underrepresented or excluded from the sample is similar
to that of groups in the sample, one can estimate
population characteristics with sampling weights
(see "Errors of Sampling, Reporting, and Nonresponse" below).
The appendix briefly discusses the survey design
and preparation of the data used in this article.
Issues include the design and content of the
survey, editing procedures employed to deal
with problems of missing data, the construction
of sampling weights used to calculate the population estimates, and details of some of the calculations underlying the reported figures.
Survey
Design
The 1986 Survey of Currency and Transaction
Account Usage was conducted as part of the
monthly Survey of Consumer Attitudes of the
Survey Research Center of the University of
Michigan. 1 In the monthly survey, interviews are
conducted by telephone, with telephone numbers chosen from a cluster sample of residential
numbers in the coterminous United States. 2 The
sample is chosen to be broadly representative of
the four major regions—Northeast, North Central, South, and West—in proportion to their
populations. At each telephone number drawn, a
family is chosen and a random adult from that
family is selected as the respondent. 3 As noted in
the text, the frames of reference for the questions
in the 1986 survey are both the individual and the
family of the individual.
The sampling procedure is likely to produce a
nonrandom selection of families and individuals.
The questionnaire for the 1986 Survey of Currency and Transaction Accounts Usage was similar to that used for the 1984 survey. In addition
to standard demographic information, the survey
solicited three kinds of information essential for
understanding the use of means of payment.
First, it requested detailed information about the
use of checking accounts and other family savings or money market accounts during the month
preceding the survey. The questions asked about
(1) the number and size of deposits; (2) the
number and size of withdrawals; (3) the number
and size of cash deposits and withdrawals; (4) the
dollar amount of transfers between accounts; (5)
the dollar amount of investments and large
expenditures from accounts; and (6) service
charges, interest payments, and other account
characteristics. Respondents were encouraged to
consult available records.
1. See Richard Curtin, "Indicators of Consumer Behavior:
The University of Michigan Surveys of Consumers," Public
Opinion Quarterly, vol. 46 (Fall 1982), pp. 340-52.
2. For a description of the method on which this sampling
plan is based, see Joseph Wacksberg, "Sampling Methods for
Random Digit Dialing," Journal of the American
Statistical
Association, vol. 73 (March 1978), pp. 40-41.
3. For a description of the method of selecting the respondent from a given family, see Leslie Kish, "A Procedure for
Objective Respondent Selection within the Household,"
Journal of the American Statistical Association,
vol. 44
(September 1949), pp. 380-87.
In the monthly survey, a family is an individual living alone
or any number of persons related by blood or marriage who
are living together. The head of the family is the individual
living alone, the male of a married couple when only one
married couple live together, or the adult in a family with
more than one person and only one adult. In all other cases,
the head is the adult closest to 45 years of age. Adults are
persons of 18 years or more.
Changes in the Use of Transaction Accounts and Cash from 1984 to 1986
Second, the survey focused on families' use of
money orders, credit cards, and electronic banking services. Information was requested for the
month preceding the survey on (1) the number
and amount of money orders used; (2) the number and types of credit cards held by the family;
(3) the charges made using those cards and
balances unpaid after the previous payment; (4)
ownership and use of automated teller machine
cards and the use of cash networks; and (5) the
incidence of automatic or electronic payments
and deposits.
Third, the survey inquired about individuals'
use of cash (currency and coin). For the most
recent time they obtained cash, respondents
were asked (1) where they obtained it; (2) how
they obtained it; (3) their cash reserves just
before they obtained it; (4) how much they
obtained; (5) how much of it they spent on
investments or money orders or gave to family
members; and (6) when they expected to obtain
cash again. The survey also sought information
about respondents' typical patterns of cash acquisition: how frequently they typically obtained
cash, how much they usually had on hand just
before obtaining more, and how much cash they
typically obtained. Although many of the questions regarding cash were identical to those used
in the 1984 survey, some questions were rephrased and others were added. The 1986 survey
solicited more information on where and how
individuals last obtained cash. It also asked
about stocks of cash that families kept on hand
for purposes other than everyday expenses.
Estimates of average balances and monthly
expenditures based on respondents' typical and
most-recent behavior in acquiring cash represent
different statistical concepts. In principle, the
previous time a respondent acquired cash represents a random selection from the range of
behavior possible for that person. If respondents
are randomly selected, estimates based on mostrecent behavior are proper estimates of population statistics, at least in large samples. Samples
the size of the 1986 survey, however, may not be
large enough to give proper representation of the
distribution of rare behavior in the population
and thus may be unduly sensitive to outliers.
The reported typical behavior is likely to represent most common, rather than average, be
193
havior. Although typical behavior should be less
variable than most-recent behavior and therefore
more resistant to distortion by outliers, it may
not reflect rare, or even less-common, behavior
sufficiently well. Because estimates based on
each of these types of responses could be flawed,
it is not clear which is to be preferred.
The Survey Research Center conducted interviews for the 1986 survey primarily in June just
as it did for the 1984 survey. That month was
selected so that comparisons between the two
surveys would be uncomplicated by seasonal
effects. The 1986 survey had a response rate of
75 percent, with a total of 658 interviews obtained, whereas the 1984 survey, which had a
response rate of 78 percent, used 1,885 interviews. The version of the 1984 data used here has
been converted to 1986 dollars using the Consumer Price Index (5.5 percent change) and
reweighted with revised 1984 population data.
Errors of Sampling,
Nonresponse
Reporting,
and
The results of any survey, and the estimates of
population characteristics derived from it, are
subject to errors based on the degree to which
the sample differs from the general population, to
errors arising during the interview, and to errors
derived from incomplete responses.
Sampling error is a measure of the random
deviation of the survey findings resulting from
the selection of a particular sample. The first four
columns of table A.l contain the approximate
sampling errors associated with various sample
sizes and reported percentages from a survey,
assuming a confidence level of 95 percent. The
odds are 95 in 100 that the estimated percentages
reported lie within a range equal to the reported
percentages plus or minus the sampling error.
For estimates based on the entire 1986 survey
population, the relevant sample size is about 600
respondents. Similar confidence intervals are
given in the last two columns for percentage
changes between the 1984 and 1986 surveys
using the entire populations of both surveys. The
figures given are appropriate for determining
whether the difference in percentages estimated
in the 1984 and 1986 surveys are different at a 95
194
Federal Reserve Bulletin • March 1987
A . 1 A p p r o x i m a t e 95 percent sampling errors of
s u r v e y e s t i m a t e s of p e r c e n t a g e s in single
s u r v e y s and o f c h a n g e s in p e r c e n t a g e s b e t w e e n
the t w o s u r v e y s , b y s i z e of sample 1
Sampling error for 1986
survey
Survey results
(percent)
Size of sample
100
50
30
20
10
5
1
300
500
600
10
9
8
6
4
2
6
5
5
3
3
1
4
4
4
3
2
Sampling
error for
changes
between
1984 and
1986
surveys 2
4
4
3
2
2
1
1
5
4
4
3
2
1
1. 1.96 standard errors.
2. For estimates based on the full samples in each survey.
percent significance level. For example, an estimated change of 5 percentage points from 1984 to
1986 has a 95 percent confidence interval of
approximately 3 to 7 percentage points. 4
Reporting errors may arise by accident, on
purpose, or from a lack of information. This
problem may have arisen in the 1986 survey
particularly for questions about family transaction accounts when the respondent was someone
other than the head or spouse of the head (approximately 10 percent of the respondents were
of this type). The data used for this article have
been edited to eliminate, to the extent feasible,
inconsistencies arising from such errors.
Nonresponse errors may arise because a family selected for participation in the survey could
not be interviewed. If nonresponse arises randomly in the sample population, no bias should
be induced in the estimates of population statistics. Unfortunately, in this survey one cannot
make such a judgment. One can, however, make
partial correction for some such errors by
observing how the population interviewed differs
from the total population in the distribution of
certain characteristics. The cause of this deviation is a combination of sampling and nonresponse errors. To the degree that these deviations are the result of systematic tendencies in
the population, sampling weights can compensate for biases in sampling and nonresponse.
4. More detailed tables are given in Alan Stuart, "Standard Errors for Percentages," Applied Statistics, vol. 12
(June 1963), pp. 87-101.
Like almost every household survey, the 1986
survey contained observations with missing values for some of the variables. Of the 658 observations, 431 had at least one missing item. However, 80 percent of the cases had fewer than 10
missing items. Of key responses, 9 percent of the
observations were missing the amount of cash
last obtained, 11 percent were missing the current checking account balance, and 23 percent
failed to answer the question about cash reserves
held for emergencies or other purposes. 5
Because the units of observation for the cash
and account questions were the individual and
the family respectively, cases with insufficient
data were eliminated from the analysis separately for these two sections. Rules requiring that a
minimum of approximately 30 percent of a core
of questions be answered completely were used to
eliminate 42 cases from the analysis of individual
currency behavior and 61 cases from the analysis
of transaction accounts and other family variables. Of these, 36 cases were eliminated from
both analyses. In general, the cases eliminated
from analysis were more likely to be poorer and
nonwhite or Hispanic. As might be expected,
cases eliminated from the account analysis also
tended to be cases in which the respondent was
someone other than the head or the spouse of the
head. For the cases retained, the data were
edited, and all missing values were imputed for
individual or family questions as appropriate.
Estimates of missing values were made with
statistical procedures that used observed information in a way that respected accounting identities and preserved the randomness of the original
sample data. 6
Sampling
Weights
One means of making formal correction for deviations of the final sample population from the
population relevant for analysis is to use sam5. These percentages were calculated on the relevant
population bases. All respondents should have reported the
amount of currency obtained. Only 584 respondents, however, either answered that they had a checking account or
refused to answer that question, and only 188 respondents
answered that they held or did not hold extra cash reserves.
6. See Graham Kalton, Compensating for Missing Data
(Survey Research Center, University of Michigan, 1983), for
a discussion of the benefits of imputation.
Changes in the Use of Transaction Accounts and Cash from 1984 to 1986
pling weights in the calculation of statistics. 7 In
the 1986 survey, two population universes of
U.S. residents are of interest: noninstitutionalized families and noninstitutionalized individuals
aged 18 years or more. So that appropriate
sampling weights could be computed, the survey
sample (adjusted for observations that were
dropped because of missing data) was poststratified by marital status, sex, age, race, and income
for individual respondents and for their families.
Corresponding population frequencies were estimated from the 1983 Survey of Consumer Finances, which was adjusted to reflect population
totals for June 1986.8 For each cell, individual
sampling weights were given by the ratio of the
respective universe and sample cell frequencies. 9
All statistics reported in the text and tables of
this article were calculated using the individual
or the family sampling weights. Table A.2 compares the weighted and unweighted distribution
of selected individual characteristics in the final
sample. The relationship of the distribution of
family characteristics is similar.
Construction
of Selected
Estimates
The expenditure shares reported in charts 1 and 2
were calculated using the data supplied by respondents to estimate the number and dollar
value of family payments made during the previous month using credit cards, main and other
checking accounts, savings and money market
accounts, and money orders. Because the figures
obtained on family use of cash do not enable one
to determine how much of that cash was spent on
goods and services, the cash figure used
in calculating chart 1 is the implied population
aggregate of individual net monthly cash expen-
7. See D.G. Horwitz and D.J. Thompson, "A Generalization of Sampling without Replacement from a Finite Universe," Journal of the American Statistical Association, vol.
48 (December 1952), pp. 396-404.
8. See Robert B. Avery and Gregory E. Elliehausen, 1983
Survey of Consumer Finances (Board of Governors of the
Federal Reserve System, forthcoming).
9. Because this survey undersampled Hispanics and nonwhites relative to their proportion in the population, creating
cells of sufficient size for this group for all other crossclassifications was not possible. Generally, when cell sizes
were too small, the cell weight was allocated to the other
racial-ethnic group nearest in terms of other characteristics.
195
A.2 Distribution of individuals in weighted and
unweighted samples, by various characteristics,
1986
Unweighted
sample
Weighted
sample
Family Income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 or more
14
19
18
33
16
17
21
17
31
14
Age (years)
Less than 35
35-44
45-54
55-64
65 or more
42
23
12
12
12
36
21
11
18
16
47
53
43
57
89
12
82
18
10
91
10
90
Individual characteristic
Sex
Race or
ethnicity
Nonwhite or Hispanic
Family ownership
One or more
of
accounts
ditures. Payments by check (including automatic
payments and bank checks) were calculated by
subtracting cash withdrawals, account transfers,
and investment purchases from total withdrawals
from each type of account. Two measures of
total withdrawals were available for this calculation. Respondents were asked directly the
amount of their total withdrawals. Also, withdrawals could be calculated indirectly as the
difference between the account balance reported
for the previous month plus deposits, net interest, and the current reported balance. The average of these two measures was used in determining all account expenditures in the article.
Most other statistics on account usage given in
tables 1-4 were based on direct responses to
survey questions. Account balance figures were
calculated by averaging the current and previous
month's balances as reported by respondents.
Credit card, money order, and ATM statistics
are also based on direct responses given by
respondents.
All variables reported on cash usage in this
article are based on measurements of individual,
rather than family, behavior. Measures of individuals' average cash balances and monthly expenditures made with cash were constructed
from information about the time intervals be-
196
Federal Reserve Bulletin • March 1987
tween acquisitions of cash, the amounts of cash
obtained, and the amounts of cash left before
more was obtained. Individuals reporting typical
behavior were assumed to have spent the acquired cash uniformly over the normal interval
between cash acquisitions. These expenditures
were adjusted to a common monthly basis. Average balances were calculated as the sum of what
respondents typically had on hand before obtaining more currency and one-half the amount they
usually obtained.
Calculation of the corresponding variables
based on the reported most-recent behavior was
somewhat more complicated, though the basic
calculation was closely related. The calculation
proceeded in two steps: the period between the
interview and the time currency was most recently obtained (interval 1) was considered separately from the period between the interview and
the time individuals expected to obtain currency
again (interval 2). For each interval, an average
balance and an expenditure figure were calculated almost as they were for typical behavior. In
the first interval, any currency given to other
family members or used to purchase money
orders or financial investments was subtracted
from the implied expenditures. This adjustment
yielded an estimate of currency expenditures on
goods and services. In the second interval, these
calculations were based on the assumption that
currency holdings were run down to the amount
that respondents typically had on hand when
additional currency was acquired. When this
latter assumption implied negative expenditure,
the level of cash holdings was assumed to be
maintained at the level reported at the time of the
interview. Average balances were computed as a
weighted average of the average balances of the
two intervals where the weights were the lengths
of the intervals. An estimate of monthly net
expenditures was calculated as the sum of the
two expenditures adjusted to a monthly basis.
This measure of cash expenditures is sensitive to
the presence of a few extreme outliers. As noted
earlier, this calculation is based on a random
drawing from respondents' range of behavior.
Apparently some respondents obtained an unusually large amount of cash over a very short
interval. In an attempt to make an estimate of
cash expenditures that would be less sensitive to
the presence of outliers, the figures used in table
13, in chart 1, and in the text are this final
measure of net expenditure truncated at one and
a half times monthly gross family income.
•
197
Industrial Production
Released
for publication
January
at an annual rate of 3LA percent. However, at
126.6 percent of the 1977 average, industrial
production in December was only about 1 percent higher than it was a year earlier.
In market groups, output of total consumer
goods rose 0.9 percent in December—following
gains of 0.7 and 0.5 percent in November and
October respectively. Autos were assembled at
an annual rate of 7.9 million units in December,
16
Industrial production increased an estimated 0.5
percent in December following an advance of 0.6
percent in November and a rise of 0.3 percent in
October. Gains occurred in most sectors but
were especially strong in consumer goods, defense equipment, and nondurable materials. In
the fourth quarter of 1986, industrial output rose
Ratio scale, 1977 = 100
TOTAL
140
INDEX
120
100
80
140
MANUFACTURING
—
^
—
Nondurabley—/*
^
s^s
N ^
—
MATERIALS
120
Durable
Nondurable
100
I
I
!
I
Energy
\J
Durable
80
_L
160
CONSUMER
GOODS
140
INTERMEDIATE
Nondurable
PRODUCTS
Business supplies
120
J
100
Construction supplies
80
J
I
I
240
OIL A N D G A S DRILLING
200
FINAL
PRODUCTS
D e f e n s e and space
160
Business e q u i p m e n t
120
/
100
80
Consumer eoods
60
1980
1982
1984
1986
All series are seasonally adjusted. Latest figures: December.
1980
1982
1986
198
Federal Reserve Bulletin • March 1987
1977 = 100
Percentage change from preceding month
1986
1986
Group
Nov.
Dec.
Aug.
Sept.
Oct.
Percentage
change,
Dec. 1985
Nov.
Dec.
1986
Major market groups
Total industrial production
126.0
126.6
.1
-.1
.3
.6
.5
.9
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment..
Defense and s p a c e . . .
Intermediate products..
Construction supplies
Materials
134.5
133.4
125.8
117.4
128.9
139.2
184.5
138.5
126.3
114.5
135.3
134.2
126.9
119.4
129.7
139.3
186.2
139.2
126.7
114.7
.4
.4
.0
-.5
.1
1.0
.8
.4
1.1
-.3
-.4
-.3
-.7
1.4
-1.4
.0
.6
-.6
.4
.3
.6
.4
.5
-.7
.9
-.1
.9
1.0
.1
-.1
.4
.5
.7
.6
.7
.0
.5
.1
.2
1.0
.6
.6
.9
1.7
.6
.1
.9
.5
.3
.2
1.8
.7
2.9
3.6
2.7
-.5
4.3
5.4
5.8
-.6
.5
.4
.6
.7
1.2
.6
.7
.5
.4
-.2
2.4
.7
4.9
-9.7
-3.7
Major industry groups
Manufacturing.
Durable
Nondurable .
Mining
Utilities
130.5
128.7
133.1
96.6
110.9
131.4
129.6
133.8
97.0
110.6
.2
.1
.4
-.7
-1.2
.0
.5
-.6
-.3
.0
.3
.1
.7
-.3
1.1
NOTE. Indexes are seasonally adjusted.
up from the 7.3 million rate of both October and
November; output of trucks for consumer use
also increased during the month. Consistent with
the strength in sales of new and existing homes
during 1986 as a whole, production of home
goods continued to rise strongly in December;
output of clothing also increased for the third
month in a row. However, output of business
equipment continued to show little change and
was still 0.5 percent lower than it was a year
earlier. Production of defense equipment posted
another large increase in December and finished
the year about 4 percent higher than it was a year
earlier. The expansion in the production of construction supplies continued during December
but at a somewhat slower rate than the average
for the year. Output of materials increased 0.2
percent in December as production of nondurable materials—especially textiles, chemicals, and
paper—rose 0.8 percent; production of durable
materials edged down following a sharp gain in
November.
In industry groups, manufacturing output increased an estimated 0.6 percent following a
similarly strong gain in November. Although
steel production was down after a large November increase, the output of most other durables
increased in December. Moreover, output of
nondurable goods industries—a strong sector
over the past year—rose 0.5 percent in December. Mining output increased 0.4 percent, but
production at utilities edged down.
199
Statements to Congress
Statement by Paul A. Volcker, Chairman, Board
of Governors of the Federal Reserve System,
before the Committee on Banking, Housing, and
Urban Affairs, U.S. Senate, January 21, 1987.
I welcome this opportunity to provide the views
of the Federal Reserve Board on the legislative
issues before the committee. As was aptly observed in the letter of invitation to appear at this
hearing, these issues, for the most part, have
been thoroughly reviewed and debated over a
number of years and now cry out for legislative
action.
I cannot emphasize strongly enough that a
strong, stable, and competitive banking and financial system is an indispensable ingredient of a
healthy and growing economy. Plainly, inescapable forces of change—technological, economic,
and competitive—at work on an international
scale require appropriate and effective response
if the broader public interests at stake are to be
served.
But the simple fact is that today, in the absence of fresh congressional direction, that objective is in jeopardy. Both thrift and bank regulators need additional tools to deal with pressing
problems. More generally, important principles
that have long guided our financial system, and
that seem to me integral to its lasting health and
stability, are being undermined. Particular institutions and segments of the financial industry are
responding to the shifting competitive pressures
and their perceived self-interests by exploiting
loopholes and inconsistencies in present law in
ways that will ultimately threaten the integrity of
the whole.
The point is not, of course, that forces of
change can or should be stifled. Rather, those
forces should be channeled in a constructive
way. There are clearly areas in which market
competition should be freed and efficiency promoted. At the same time, there are clearly areas
in which institutional stability and independence
need to be protected by maintaining an appropriate legislative and regulatory framework.
As a practical matter, the controversy and
complexity surrounding this area mean that a
really comprehensive review of the legislative
structure—the range of powers of banking and
financial holding companies, the role of deposit
insurance, changes in the regulatory apparatus—
surrounding this area must take some time. No
doubt, it's too much to accomplish in one fell
swoop. However, there are areas in which action
cannot wait, both because there are particularly
pressing needs and because they will signal the
broad framework within which more thoroughgoing reform will take place. It is in that context
that I strongly welcome the plan to formulate
quickly a limited bill on the basis of the present
hearings (and those of recent years) and to seek
committee markup and Senate action early in
this session.
The immediate issues fall in four general areas,
and they all are ripe for action. The "emergency" need for measures to bolster the ability of
the insuring agencies to deal with failed or failing
banks and thrift institutions was made convincingly in the last Congress. The time has plainly
arrived to clarify and expand certain securities
powers of bank holding companies, a matter that
simply cannot be dealt with reasonably and rationally without congressional action. There is
widespread interest in improving the process of
check collection in a manner that will speed the
availability of funds to depositors in financial
institutions. And, it is evident that the longstanding national policy of maintaining a basic
separation of commerce and banking and a basic
unity between state and federal banking authorities is being eroded; that process needs to be
halted before irretrievable damage is done.
Action in all those directions seems to me
entirely consistent with the desirable longer-run
evolution of the financial system, and therefore
need not be delayed awaiting more comprehen-
200
Federal Reserve Bulletin • March 1987
sive legislation. To the contrary, failure to act
can now only complicate, and likely thwart,
further constructive reform.
THE BASIC
SEPARATION
OF BANKING AND COMMERCE
This committee has repeatedly considered the
so-called "nonbank bank" (and "nonthrift
thrift") question over several years without resolution. In one sense, the issue is technical, involving the increasing exploitation of what was
considered at the time of enactment a narrow
loophole in the Bank Holding Company Act.
However, as commercial firms have increasingly
moved to exploit that loophole in their individual
interests, and as thrift institutions have assumed
banking powers, the more basic issues at stake
have become apparent.
Essentially, the nonbank bank has become a
device for tearing down the separation of commerce and banking by permitting a commercial
firm to enter the traditional banking business
without abiding by the provisions of the Bank
Holding Company Act. That process is accomplished by establishing banks that refrain from
making commercial loans, or by establishing
banks that refrain from accepting demand deposits, or potentially by establishing both types of
banking affiliates that, somewhat awkwardly,
would together provide the full range of banking
services.
At the same time, some established commercial banks have sought to use the "nonbank"
device to expand interstate. However, the incentives to do so are being reduced by the rapid
liberalization of interstate banking restrictions by
the states themselves, and that particular use of
the nonbank bank is not a matter of strong policy
concern to us. However, the potential of existing
banks to split themselves into two nonbank
banks as a means of avoiding the provisions of
the Bank Holding Company Act entirely, while
still more theoretical than real, illustrates the
basic nature of the issue before you.
Fundamentally at stake is not a few inhouse
consumer banking offices of some retail chains or
operational access of some companies to the
payments system, services that can be effi
ciently provided in other ways. Rather, you are
presented with the question of deciding upon the
nature of the banking system you want to see
evolve in this country.
I believe we need, and can support, a strong
banking system with a variety of units large and
small, able to compete efficiently, and capable, if
they wish, of participating through affiliates in a
wide range of financial services to consumers
and businesses alike. At the same time, we want
to protect against instability, excessive concentrations of power, and undue conflicts of interest, while preserving an institutional framework
for the effective conduct of monetary policy. In
seeking those goals, the separation of banking
and commerce has been a basic part of the
American tradition for what seems to me sound
reasons.
Handling other people's money, which is what
banking is all about, connotes a fiduciary responsibility—to invest those funds prudently while
making loans available competitively, productively, and impartially to all sectors of the economy. To that end, banking systems in virtually all
countries are regulated, and in one way or another the depositors are offered a degree of protection by means of a public "safety net." All of
that reflects a fundamental recognition—from
the writings of Adam Smith on down—that banks
play a particularly strategic role in the economy
that requires some regulation and support. The
interdependence between the fortunes of one
institution and others and the dependence of all
on maintenance of a basic confidence in the
stability of the whole imply a special sensitivity
to risk and the general interest that is no less
important today.
The Bank Holding Company Act itself rests on
the philosophy that banking cannot be treated as
just another business, with its fortunes entirely
subject to the vagaries of the marketplace. It
permits banking organizations to engage in related financial businesses. A degree of "separation" is required between affiliates and a bank
within a holding company, both for prudential
and competitive reasons. However, there is also
some surveillance of the whole, recognizing that
insulation cannot be complete.
No doubt, as I will urge later, the legitimate
boundaries of activities permitted by banking
Statements
organizations need to be reviewed and enlarged.
But to extend the interrelationships to business
and commerce generally would be a change not
of degree but of kind. We certainly do not want
to undertake new regulation of nonfinancial businesses or incorporate them within the public
safety net. But without that regulation, how
would we protect against new dangers of concentration, conflict of interest, and instability?
What is suggested by some is that strong walls
can be built to insulate a regulated and supervised bank from its nonbanking and commercial
affiliates. As I just indicated, a certain "separateness" is already enforced within a bank holding
company. But the insulation is far from complete, and attempting to make it so would present
very great practical difficulties.
Common ownership of businesses implies
common direction—why else would they want to
join together? In particular, the fortunes of one
unit rest on the performance of others, especially
in an area so sensitive to confidence as banking.
All our experience with the Bank Holding
Company Act points to the strong incentives of
management to support all parts of the organization when they come under pressure. That is
understandable because it is demonstrable that
weakness or failure of one part of a holding
company can rapidly spread to others. The legal
doctrine of corporate separateness of affliates
can, and has been, challenged in the courts when
common direction and management are present.
And, suppose we succeeded in building full and
credible insulation between a bank and its affiliates—no direct or indirect transactions among
them, no common officers, no tandem operations, no possibility of mutual support or greater
capital leveraging as part of a banking organization—then, I would ask, what is the economic
incentive for such combinations at all? Certainly,
present restrictions on linkages between banks
and other parts of a holding company are often
resisted by management.
We are asked to look to foreign experience
with "universal" banking systems as justifying
greater integration of banking and commerce.
But frankly, I don't find much comfort there. We
have never been admirers of the old Zaibatsu
system in Japan, which led to enormous concentration of finance and commerce. German banks
to Congress
201
have long had a sizable ownership stake in some
industrial companies. Even now, that arrangement is under strong attack within Germany
itself as anticompetitive and stifling to the development of equity and capital markets. 1 Italian
authorities, reacting to experience, are moving to
restrict nonbank ownership of banks more forcibly, arguing that "firms controlling banks . . .
involved large segments of the banking system
together with savers in their crises" (that is, in
crises of the controlling commercial firm). 2 Our
Canadian neighbors, in proposing sweeping
changes in the organization of their financial
system including a broader range of financial
services for banking organizations, have indicated a special sensitivity to forestalling any sizable
combinations of banking and commerce. 3 And,
in fact, whatever the formalities of the law, there
are few instances in industrialized countries of
commercial firms owning important banking institutions.
That is, of course, the situation in the United
States today. The nonbank bank phenomenon is
recent and, as yet, poorly developed. Excluding
industrial banks, there are 79 nonbank banks
insured by the Federal Deposit Insurance Corporation (FDIC), not all of which are in operation.
Of those, 17 are owned by banks or thrift institutions, raising only the question of interstate
banking, which in any case is in a state of flux.
Most of the remainder are affiliates of financial
firms; while these are inconsistent with the spirit
of the Bank Holding Company Act as now written, they do not, except incidentally, violate the
basic separation of banking and commerce. Only
the remaining 13, with total assets of some $1.7
billion, are affiliated directly or indirectly with
1. See generally Academic Advisory Commission to the
Ministry of Economics, Federal Republic of Germany, Policies on the Enhancement of Competition, December 5-6,
1986 (Monopoly Commission of the Federal Republic of
Germany, Main Report, 1980-81).
2. Statement by Governor Carlo A. Ciampi, Bank of Italy,
before the 6th Standing Committee (Finance and Treasury),
Chamber of Deputies, Rome, November 28, 1986, "Inquiry
into the Development of the Banking and Financial System
and the Relevant Legislation," pp. 11-12.
3. Department of Finance, Canada, Communique, 86-210,
(remarks by The Honorable Thomas Hockin in the House of
Commons on tabling the policy paper " N e w Directions for
Financial Institutions," December 18, 1986).
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Federal Reserve Bulletin • March 1987
firms primarily engaged in commerce. Half of
those assets involve only one firm.
Many of those relationships were established
with fair warning, after grandfather dates proposed in earlier legislative proposals, and are not
yet integral to the successful operation of the
parent. But that will change. The time has come,
it seems to us, for the Congress to set out the
"rules of the game" clearly and specifically,
before a reasonable case can be made that, de
facto, the issue is moot.
For that reason, we would welcome early
legislation to redefine a bank along the general
lines of the bill that passed the Senate as early as
1984—essentially to include FDIC-insured banks
and noninsured banks that take transaction accounts and make commercial loans. Existing
institutions might be grandfathered so long as
their operations are not expanded or operated in
tandem with their affiliates. Taking a leaf from
the Canadian proposals, control might be shifted
to public ownership (with full banking powers) as
expansion takes place. Whether nonbanks
owned by financial firms should be permitted to
expand or become full service institutions should
be governed by the range of powers open to bank
holding companies.
Similar restrictions would be appropriate for
"thrift" institutions that, in fact, operate like
commercial banks. But exception could be made
for savings and loan associations or savings
banks that, in fact, continue to operate primarily
as specialized mortgage lenders without their
operations integrated with those of affiliates.
That would continue, in practical effect, the
existing position of a number of thrift institutions, some of which have long been owned by
commercial firms as independently operated businesses through the vehicle of a unitary thrift
holding company. Such an approach would incidentally provide a vehicle for commercial firms
to purchase troubled thrift institutions so long as
they chose to commit themselves largely to the
residential mortgage market.
THE SOUTH DAKOTA
LOOPHOLE
For more than 100 years, the United States has
had a " d u a l " system of banking law and regula
tion, dividing chartering and supervisory authority between the state and federal authorities.
While that approach is bound to give rise to
certain tensions, in general it has operated constructively by providing a certain room for difference and experimentation among the states, and
between the states and the federal government.
At the same time, it is evident that the safety and
stability of the banking system as a whole is a
national concern—a concern reflected specifically in the existence of the Federal Reserve and the
Federal Deposit Insurance Corporation systems.
The dual system works well when that overriding
interest is respected.
Recently, there have been developments that
challenge that basic assumption. Some states,
zealous to attract jobs and revenues from others,
have moved to grant new powers to their banking
or thrift institutions far beyond that allowed
federally chartered institutions. South Dakota, in
doing so, adopted the unusual approach of permitting certain of those powers to be exercised
effectively only outside the borders of South
Dakota itself.
That form of potentially destructive interstate
competition—the exercise elsewhere of powers
deemed unsuitable for the state itself—should be
eliminated. Moreover, it should be clear that new
powers, whether or not exercised within the
chartering state, that clearly jeopardize the safety and soundness of banks and thrift institutions,
or violate the basic separation of commerce and
banking, with adverse consequences for the federal insurance funds and the financial system as a
whole, can be curtailed or overridden by the
appropriate federal authorities. We believe clarification of existing authority and a fresh congressional expression of intent along those lines
would be desirable, and we would be glad to
propose language with that effect.
SECURITIES
POWERS
Resolution of the nonbank bank issue and clarification of the legitimate role of states in banking
regulation do not dispose of the practical issue of
resolving the proper scope of powers of bank
holding companies in the general area of financial
activity. We have long urged that the Congress
Statements
recognize the competitive, technological, and
international forces at work in the banking and
financial marketplace and expand the authorized
role for bank holding companies.
These issues are inevitably highly controversial for they affect the competitive environment
of existing institutions. No doubt, a full redefinition must await more comprehensive legislation.
But there are areas in which progress is clearly
possible now, and where change is in any event
under way. The only question is whether that
change will be piecemeal and haphazard as it
works its way through the intricacies of present
outdated law, with odd and anomalous results, or
whether that change will be channeled along
more clearly constructive lines.
That is precisely the issue today with respect
to the securities powers of banks and bank
holding companies. The Glass-Steagall Act,
written more than a half century ago, has been
commonly interpreted as calling for the "divorce" of investment from commercial banking
(with the exception of U.S. government securities and the general obligations of state and local
governments). But it is also true that the literal
language of the law, with respect to bank affiliates, indicates vaguely that such affiliates may
not be "engaged principally" in prohibited securities activities.
The Federal Reserve Board recently interpreted that language to permit, with strict limitations
on volume, sale of commercial paper by a commercial lending affiliate of a bank holding company. We have under consideration applications to
permit underwriting of mortgage-backed securities and municipal revenue bonds as well as
commercial paper in affiliates largely engaged in
trading government securities, which present additional legal and practical issues.
We have long felt, as a matter of good public
policy, that all these activities are appropriate for
bank holding companies without artificial limitations on the volume of operations. But the issue
before us is whether that result can be achieved,
legally and reasonably, under existing law.
One thing is evident. Existing law provides a
strong incentive for certain large banking organizations to transfer assets and activities out of the
bank itself into a nonbank affiliate so that affiliate's otherwise prohibited securities activity will
to Congress
203
be small relative to the whole. Moreover, only
the largest bank holding companies will be able
to muster a sufficiently large asset base to make
the otherwise prohibited securities activity commercially economic and attractive.
That cannot be a sensible result from the
standpoint of either public policy or private
interests. The effect is both to artificially encourage the reduction of assets in the regulated and
protected banking system and to impose unnecessary restraints on competition. Yet it is the
situation in which we find ourselves. And, we
cannot defer a decision on this matter much
longer. We have scheduled public hearings for
early February and a decision in April.
But only the Congress can provide a really
sensible approach consistent with safety and
soundness of the banking system, effective competition, and the interests of borrowers and lenders alike. To that end, we strongly support the
suggestion of the chairman of this committee that
straightforward authority be provided, as part of
an early legislative package, for affiliates of bank
holding companies to underwrite private securities backed by 1- to 4-family residential mortgages, municipal revenue bonds, commercial paper, and mutual funds. Because these are active,
growing markets and potentially important
sources of revenue, action in this area would go
some distance toward meeting the legitimate
concerns of banking organizations that they cannot keep abreast of growing sectors of the financial markets even when safety and soundness or
conflict of interest considerations are not persuasive deterrents.
Opposition to these powers is almost entirely
limited to investment houses now with the field
to themselves. We have long been convinced
that with appropriate prudential safeguards and
protections against self-dealing, these powers
can be exercised consistent with the safety and
soundness of the banking system and the interest
of the public at large in effective competition.
While urging action on these powers now, we
would also encourage the committee to consider
other financial areas appropriate for bank holding companies. I recognize that these areas—
including insurance and real estate brokerage,
insurance underwriting, and corporate security
underwriting—are more controversial and will
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Federal Reserve Bulletin • March 1987
take more time to resolve. They, together with
other important issues (including simplification
of the procedures required by the Bank Holding
Company Act), can await more comprehensive
legislation later in this year or next year. But to
that end, I hope the committee will not act to
foreclose further any of the existing opportunities of bank holding companies to provide financial services.
I would particularly urge the committee to
undertake hearings or other studies in the area of
corporate underwriting—a process that we
would be pleased to support. Clearly the issues
in this area are more complicated because of the
greater potential for conflicts of interest. However, they cannot be evaded much longer. A very
substantial amount of such activity is already
conducted by bank holding companies abroad,
and the increased securitization of financial assets by banks and others requires fresh consideration of how banks participate in that process.
Moreover, the issue could well arise as a matter
of interpreting the present provisions of GlassSteagall.
EMERGENCY
PROVISIONS
The need for additional liquidity for the Federal
Savings and Loan Insurance Corporation
(FSLIC) is plainly urgent. I know that you have
in the past, and will again, be receiving detailed
testimony on the Treasury-FSLIC proposal for
recapitalization of the insurance fund by leveraging the existing surplus of the Federal Home
Loan Banks and providing for special assessments on insured institutions. I know of no
practical alternative at this time to that approach,
nor is the time available to delay action while
considering other possibilities that would require
more sweeping reorganization. Moreover, the
proposed approach conceptually is correct in
looking to the insured industry itself to provide
the financial support needed now.
At the same time, we share the views of many
in the industry that self-help must be accompanied by effective supervisory and regulatory discipline to forestall aggravation of the underlying
problem. Clearly, some thrift institutions have
not used their existing authorities wisely or well.
Perverse incentives have arisen, with deposit
liabilities fully insured, to undertake high risk
activities inappropriate for any depository institution.
I am aware of the strong efforts made by the
Federal Home Loan Bank Board in recent years
under the leadership of Chairman Gray to curtail
abuses, to sharply upgrade the size and effectiveness of its supervisory effort, to work toward
higher capital standards, and to regulate effectively. I believe those approaches deserve your
strong support.
As part of more comprehensive legislation in
the future, means of obtaining more consistency
in accounting, supervisory, and capital standards
among depository institutions deserve your
thoughtful attention. To my mind, special consideration should be given to the role of thrift
institutions that, in fact, want to remain largely
concentrated in the traditional area of residential
mortgage lending. Meanwhile, I hope you act
promptly on the FSLIC recapitalization proposal.
Fortunately, constructive action by Texas,
Oklahoma, and a few other states in recent
months to permit the acquisition of failed or
failing banks by out-of-state institutions, or to
liberalize interstate banking generally, has eased
the difficult job of finding buyers for actually or
potentially insolvent banks. Welcome as those
actions are, however, they do not address the
problems that could arise in certain states. Consequently, we continue to urge that you adopt
legislation along the lines proposed to you by all
the bank supervisory agencies last year, thus
providing greater assurance that we can collectively act, with dispatch and at minimum cost, to
deal with acute problems that might emerge. 4
As things now stand, with the lapse of the
authorities provided earlier by the Garn-St Ger-
4. The federal regulators proposed legislation to accomplish the following: (1) reduce the threshold amount for
interstate emergency acquisitions from $500 million to $250
million; (2) permit interstate acquisition of banks in danger of
closing (with or without FDIC assistance) as well as closed
banks; (3) allow for acquisition of a holding company and its
affiliated banks if the holding company has a bank or banks in
danger of closing with total assets of $250 million or more and
which represent at least 33 percent of its banking assets; and
(4) permit the out-of-state acquiring bank holding company to
expand in the three largest cities or metropolitan areas in the
state of the acquired banking institution.
Statements
main Act, we are without any federal authority
to arrange interstate acquisitions in emergency
situations.
FUNDS
AVAILABILITY
The final question raised by the chairman in
considering legislation for prompt congressional
action deals with check holding practices of
financial institutions. We believe such legislation
has two essential elements. First, there is a
strong and straightforward case that depository
institutions clearly disclose to customers their
policies with respect to the availability of deposited funds at the time an account is opened and
when such policies are changed. Second, certain authorities to override individual state statutes are necessary if the process of collection
and return of checks is to be speeded (or if
truncation is to be introduced), thus reducing or
eliminating the risk to depository institutions of
making funds available more promptly and uniformly.
In recent years, considerable exploratory
work and some pilot projects have been undertaken seeking to speed the return of dishonored
checks to the institution of first deposit. Progress
is, among other things, dependent upon an ability
to enforce expedited procedures by banks not
using the Federal Reserve for check clearance.
Consequently, federal legislation is necessary.
Mandatory availability schedules imposed by
law raise difficult problems. Given existing technology, very tight schedules would pose measur-
Statement by Wayne D. Angell, Member, Board
of Governors of the Federal Reserve
System,
before the Committee on Banking, Finance and
Urban Affairs, U.S. House of
Representatives,
January 27, 1987.
I welcome this opportunity to provide the views
of the Federal Reserve Board on the issue of
delayed availability and specifically on H.R. 28,
the Expedited Funds Availability Act. We share
your frustration with the check hold practices of
some depository institutions and with the inefficiencies of the return-item process. Therefore,
to Congress
205
able risks to the depository institutions, with the
potential result of curtailing the availability of
checking accounts to marginally profitable (or
unprofitable) customers. Liberal schedules might
unduly ease pressures for more rapid availability. In any event, the nature and extent of the
problem varies locally.
In these circumstances, the Board has felt
primary emphasis should be placed on efforts to
alleviate the problem through disclosure and
improvements to the check collection process
and by targeting progress toward speedier returns as in the bill before this committee last
year. However, we are aware that some states
have enacted mandatory schedules that appear
to be operating reasonably effectively. We believe that mandatory schedules would be workable provided the Federal Reserve is given authority to determine those schedules in the light
of practical progress in speeding return item
times.
We strongly believe that such schedules be
established based on the times in which the great
bulk of checks can, in fact, reasonably be expected to be collected and returned to the depository
institution in which they were first deposited in
the event of dishonor. After a relatively short
transition period, we believe that schedules of
from two to six business days or even less are
feasible depending on where the check is drawn.
The Board also believes mandatory schedules
should contain exceptions to permit depository
institutions to place holds on deposits or accounts presenting unusually high risks.
•
we are eager to work with you and the committee
to devise a legislative remedy to the delayed
availability problem. I am personally sympathetic with the goals of H.R. 28; my family experienced some of the problems faced by many
consumers when we moved from Kansas to
Washington, D.C., last year.
Legislation addressing the delayed availability
issue should contain two essential elements.
First, additional regulatory authority is needed to
make improvements in the check collection and
return process, thus reducing or eliminating the
risk to depository institutions of making funds
206
Federal Reserve Bulletin • March 1987
available more promptly. Second, there is a
strong and straightforward case that depository
institutions should clearly disclose their policies
to consumers with respect to the availability of
deposited funds when an account is opened and
when such policies are changed.
H.R. 28 and legislation that passed the House
last year also contain a third element—schedules
that dictate the maximum holds that a depository
institution may place on the proceeds of deposits. The Board believes that mandatory schedules raise difficult problems in minimizing risks
to depository institutions and in maximizing consumer benefits, and has felt that primary emphasis should be placed on improvements in the
disclosure and payment system. However, the
Board does believe that mandatory availability
schedules could be a workable component of the
delayed availability legislation, although it believes that greater flexibility is required than that
provided in H.R. 28.
I would like to spend a few minutes discussing
two of the elements of the proposed delayed
availability legislation: (1) the Board's authority
to regulate the payments system and (2) the
mandatory availability schedules.
BOARD'S
REGULATORY
AUTHORITY
The Federal Reserve strongly supports the regulatory authority provided to the Board in H.R.
28. This authority is crucial to the implementation of needed improvements in the check collection and return-item mechanism. Today, the
Federal Reserve's regulatory authority generally
applies only to those checks that it clears. While
the System has devoted significant attention to
improvements in the return-item process, our
lack of regulatory authority has lessened our
effectiveness to make significant progress in this
arena.
If legislation is passed, the Board would propose several initiatives to improve the return
process. One such initiative that the Board might
propose would be to require the payer institution
to return checks to the institution of first deposit
within a given time frame. This initiative would
effectively prohibit the use of the mail for return
items. The mail is used for more than 11 percent
of returns, slowing the trip back to the depositing
institution as much as several days. This initiative would expedite returns at relatively little
cost to the industry but would be effective only if
it were applicable to all checks regardless of how
they are cleared.
This initiative could also entail permitting institutions to return checks directly to the institution of first deposit, bypassing intermediate endorsers. H.R. 28 would provide the Board with
the authority to preempt the laws of the three
jurisdictions that currently prohibit this practice,
thus making the use of direct returns feasible on
a widespread scale.
A further initiative involves the automation of
return items through the use of the same efficient
mechanism used to collect checks. A recent test
of this concept by the Federal Reserve and 75
depository institutions proved quite promising,
reducing the time to return checks an average of
more than one-third. However, the cost of this
program falls on the institution that is returning
the check, while the benefits of the expedited
return accrue to the institution of first deposit.
Therefore, its use is not likely to be widespread
without the Federal Reserve having the authority
to create incentives for payer institutions to
participate in the program.
These examples illustrate the steps that could
be taken to accelerate the return of checks if
additional regulatory authority were granted to
the Board.
MANDATORY
AVAILABILITY
SCHEDULES
As I stated earlier, we believe that reasonable
mandatory availability schedules can be workable. Some states have enacted mandatory
schedules that appear to be operating reasonably
well.
Unfortunately, in our view the schedules in
H.R. 28 are not workable. The schedule to be
adopted after three years will encourage check
fraud, including kiting. The increased risk of
losses as a result of potential fraud would probably lead some institutions to refuse to provide
banking services to certain consumers. Finally,
legislation should not include detailed and rigid
availability schedules given the complex nature
of the check collection system.
Statements
Allow me to illustrate these points. The mandatory availability schedule for local checks that
is required by H.R. 28 after three years is unrealistically short. Even after making improvements
to the check collection system, the schedule
would be shorter than the time it would take for
most checks to be presented to the payer institution. This will encourage check fraud. Under the
mandated schedule, institutions would be required to make the funds available for local
checks at the opening of business on the next
business day after the check is deposited, although in most cases the check would not be
presented at the payer institution until later that
day. If this schedule goes into effect, it would be
relatively easy to perpetrate a check kite.
All an individual would have to do is to open
accounts at two local institutions. Both accounts
would be maintained in a proper manner for at
least 30 days to satisfy the new account exception in the bill. After that time, suppose the
individual writes a check against nonsufficient
funds for $5,000 on his account in one institution
and deposits it in his account at the other institution on Monday.
Under H.R. 28, the institution in which the
check was deposited would be required to make
the funds available to the individual at the opening of business Tuesday, thus permitting the
individual to withdraw the $5,000. However, the
check would not be presented to the institution
on which it is drawn until late Tuesday morning
or in the afternoon. That institution would not
know if there were sufficient funds in the account
to cover that check until that evening, at the
earliest, when it posts checks to its customers'
accounts.
On Wednesday, the institution on which the
check was drawn would return the check to the
other institution. Since that institution would be
unable to obtain payment from the individual, it
would suffer a loss of $5,000. Other similar
schemes involving dozens of institutions that
would result in significant losses to the banking
industry could be easily accomplished. 1 While
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.
to Congress
207
we recognize that this type of activity can, and
does, occur today and can occur with any mandatory availability schedule, requiring funds
availability before the completion of the normal
collection and return cycle will tend to encourage
this type of check fraud. This is not to say that
mandatory schedules must accommodate the return of all checks, but rather that the schedules
should not be designed so that individuals can
rely on obtaining availability before the check is
returned.
One step that an institution could take to
prevent losses of the nature that I described is to
be more selective in choosing the consumers
with which it does business. Since H.R. 28 does
not contain a general judgmental exception to the
schedules, it would preclude institutions from
protecting themselves against risk of loss at the
time of deposit by placing holds on checks when
they believe in good faith that there is a potential
for fraud. In response, institutions may take
steps to reduce their risk up front in screening
prospective accountholders. There is already a
significant segment of the population—12 percent of families according to a 1983 survey—that
does not have a banking relationship. The schedules in H.R. 28 could result in institutions refusing to provide banking services to an even larger
segment of the population.
We believe that the structure of the schedules
in H.R. 28 is too rigid. For example, the schedules that would be in effect during the first three
years are longer in some cases than is necessary
and too short in other cases. We are also concerned about the geographic categories contained in the bill—local and nonlocal. New York
State employs three categories: local, state, and
out-of-state. Some of our staff believe that a
different division would work more effectively:
local clearinghouse items, items processed by
one Federal Reserve office, and items processed
in two Federal Reserve offices. We believe that
the geographic divisions should be left open in
the legislation and decided by the Board.
The check collection system is a very complex
mechanism, and it is one that is constantly
changing. We would expect changes to acccelerate in the future as steps are adopted to improve
the return-item process and as new technologies
are introduced. Rigid schedules may not ade-
208
Federal Reserve Bulletin • March 1987
quately reflect these developments and therefore
should not be included in the legislation.
The serious problems that I just described
could be avoided. Instead of having a precise
schedule in the legislation, the Board urges the
Congress to authorize the Federal Reserve to
establish the schedules. Within a relatively short
period of time after the bill is enacted, the
Federal Reserve would implement an interim
schedule that would, in most cases, be no longer,
and perhaps shorter, than the interim schedules
in H.R. 28. Within two to three years a schedule
that is shorter than the interim schedule could be
implemented after improvements to the returnitem process are made.
If the Congress believes that it is critical to
include a schedule in the legislation, then we
would urge that the schedule include only the
maximum number of days that the Federal Reserve would be permitted to have in its schedule,
leaving flexibility for the Board to establish
shorter schedules. We would suggest that the
maximum number of days be no shorter than six
business days after the day of deposit.
Finally, there are a number of other provisions
of H.R. 28 that bear further consideration. For
example, we believe that the coverage of the
legislation should be limited to consumers. We
are unaware of any widespread delayed availability problems in the business community, and
including business accounts within the scope of
the bill would significantly increase the cost of
compliance. The Board is also concerned that
the requirement for establishing a Payment System Advisory Council may slow, rather than
facilitate, improvements in payment systems.
The council would duplicate the responsibilities
of several other groups, such as the Consumer
Advisory Council, which are already in existence. Finally, the "good faith" amendment,
which was in the bill passed by the House last
session, is not in H.R. 28. This provision allowed
depository institutions to use their judgment in
deciding whether a check presents unusual risk
and to except such checks from the mandatory
schedule. A similar provision is necessary for
depository institutions to control check fraud
losses. For this reason, we urge the Congress to
include a "good faith provision."
In summary, we believe that legislation that
requires disclosure and that provides authority to
the Federal Reserve to improve the return-item
process and establish mandatory availability proposals will be beneficial to consumers and ensure
that the costs to the banking industry are reasonable. There are a number of other technical
amendments to H.R. 28 that we would also like
to propose. The Board staff will be glad to work
with your staff to develop the most effective
legislation for accomplishing these goals. Again,
I am pleased to be here today and would be glad
to discuss the delayed availability issue in more
detail if the members of the committee desire. •
209
Announcements
NEW MEMBERS APPOINTED TO
THRIFT INSTITUTIONS ADVISORY
COUNCIL
The Federal Reserve Board on January 30, 1987,
announced the names of six new members to its
Thrift Institutions Advisory Council (TIAC) to
replace those members whose terms have expired and designated a new President and Vice
President of the Council for 1987.
The council is an advisory group made up of 12
representatives from thrift institutions. The panel was established by the Board in 1980 and
includes savings and loan, 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.
Michael R. Wise, Chairman and Chief Executive Officer of Silverado Banking, Denver, Colorado, was designated President of the Council,
and Jamie J. Jackson, President of Commonwealth Financial Group, Houston, Texas, was
designated Vice President.
The six new members, named for two-year
terms that began January 1 are the following:
Gerald M. Czarnecki, President and Chief Executive Officer of First Southern Federal Savings &
Loan Association, Mobile, Alabama; Betty
Gregg, President and Chief Executive Officer of
Desert Schools Federal Credit Union, Phoenix,
Arizona; Thomas A. Kinst, Chairman of Land of
Lincoln Savings & Loan, Hoffman Estates, Illinois; Ray Martin, President and Chief Executive
Officer of Coast Savings & Loan Association,
Los Angeles, California; Janet M. Pavliska,
President and Chief Executive Officer of Bank
Five for Savings, Arlington, Massachusetts, and
William G. Schuett, President and Chief Executive Officer of Security Savings & Loan Association, Milwaukee, Wisconsin.
The other members of the Council are the
following: John C. Dicus, President of Capitol
Federal Savings & Loan Association, Topeka,
Kansas; Donald F. McCormick, Chairman of the
Board of Howard Savings Bank, Livingston,
New Jersey; Herschel Rosenthal, President of
Flagler Federal Savings & Loan Association,
Miami, Florida; and Gary L. Sirmon, President
of First Federal Savings & Loan Association,
Walla Walla, Washington.
PRELIMINARY FIGURES AVAILABLE ON
INCOME OF FEDERAL RESERVE
BANKS
Preliminary figures indicate that gross income of
the Federal Reserve Banks amounted to $17,465
billion during 1986. Net income before dividends, additions to surplus, and payments to the
Treasury totaled $18,009 billion. This figure included additions to income resulting from revaluation of assets denominated in foreign currencies. About $17.8 billion was paid to the U.S.
Treasury during 1986.
Income of the Federal Reserve System is
derived primarily from interest accrued on U.S.
government securities that the Federal Reserve
has acquired through open market operations.
Income from the provision of financial services
amounted to $630 million.
Operating expenses of the 12 Reserve Banks
and branches totaled $1,156 billion, including
$105 million for earnings credits granted to depository institutions. Assessments by the Board
of Governors for Board expenditures totaled $97
million, and the cost of currency amounted to
$181 million.
Net additions to income amounted to $1,978
billion. This resulted primarily from an increase
of $1.971 billion in the value of assets denominated in foreign currencies related to revaluation of
these assets at market exchange rates. Statutory
dividends to member banks were $110 million;
additions to Reserve Bank surplus were $92
million; and payments to the Treasury amounted
to $17,807 billion.
Under the policy established by the Board of
210
Federal Reserve Bulletin • March 1987
Governors at the end of 1964, all net income after
the statutory dividend to member banks and the
amount necessary to equate surplus to paid-in
capital is transferred to the U.S. Treasury as
interest on Federal Reserve notes.
ISSUANCE OF REVISED LIST
OF OTC STOCKS SUBJECT
TO MARGIN
REGULATIONS
The Federal Reserve Board published on January 23, 1987, a revised list of over-the-counter
(OTC) stocks that are subject to its margin
regulations, effective February 10, 1987.
This List of Marginable OTC Stocks supersedes the revised list that was effective on November 11, 1986. Changes that have been made
in the list, which now includes 2,988 OTC stocks,
are as follows: 211 stocks have been included for
the first time, 185 under national market system
(NMS) designation; 25 stocks previously on the
list have been removed for substantially failing to
meet the requirements for continued listing; 85
stocks have been removed for reasons such as
listing on a national securities exchange or involvement in an acquisition.
The list includes all over-the-counter securities
designated by the Board pursuant to its established criteria as well as all securities qualified
for trading in the NMS. This list includes all
securities qualified for trading in tier 1 of the
NMS through February 10 and those in tier 2
through January 20, 1987. Additional OTC securities may be designated as NMS securities in the
interim between the Board's quarterly publications and will be immediately marginable. The
next publication of the Board's list is scheduled
for April 1987.
Besides NMS-designated
securities,
the
Board will continue to monitor the market activity of other OTC stocks to determine which
stocks meet the requirements for inclusion and
continued inclusion on the list.
HEARING SET FOR BHC
APPLICATIONS
TO UNDERWRITE AND DEAL
IN CERTAIN
SECURITIES
The Federal Reserve Board fixed February 3 as
the date for the hearing on the applications by
Citicorp, J.P. Morgan & Co. Incorporated, and
Bankers Trust New York Corporation to underwrite and deal in, to a limited extent through
wholly owned subsidiaries, commercial paper,
mortgage-backed securities, municipal revenue
bonds, and consumer-related receivables.
EXTENSION OF TEMPORARY
SEASONAL ADJUSTMENT
PROGRAM
The Federal Reserve Board announced on January 28, 1987, that the temporary simplified seasonal credit program has been extended through
1987. This program is designed to make funds
available at the discount window to small and
midsized agricultural banks experiencing unusually strong loan demands.
Under the temporary program, qualifying
banks may borrow at the discount window to
fund half of their loan growth in excess of 2
percent over a base level. The maximum loan
under the program is limited to 5 percent of the
borrower's total deposits.
PROPOSED
ACTIONS
The Federal Reserve Board has extended the
comment period from February 9 to February 27,
1987, on some of its proposals issued on December 10 to reduce the risks on large-dollar payment systems. The proposals concern the risks
associated with book-entry securities transfers,
the reduction of existing levels for net debit caps,
the establishment of a " d e minimis" cap category, and the adoption of limits on interaffiliate
Fed wire transfers.
The comment period for the proposed changes
to the automated clearinghouse (ACH) procedures remains the same, March 16.
The Board also sought comment on the concept of charging a fee for all daylight overdrafts
in accounts maintained with the Federal Reserve
that are subject to the net debit cap. Comment is
still requested by April 13.
The Federal Reserve Board has also requested
comment on the concept of pricing Fedwire
daylight overdrafts. (See Docket No. R-0592,
dated December 10, 1986.) Public comments
must be received by April 13, 1987.
Announcements
The Federal Reserve Board on January 28,
1987, requested comment on a proposed amendment to Regulation Y implementing amendments
to the Change in Bank Control Act required by
the Anti-Drug Abuse Act of 1986. Comments
should be received by the Board on this matter
by March 6, 1987.
211
SYSTEM MEMBERSHIP:
ADMISSION OF STATE BANKS
The following banks were admitted to membership in the Federal Reserve System during the
period January 1 through January 31, 1987:
California
San F r a n c i s c o . . . . First Indo-American Bank
CHANGE IN BOARD STAFF
Indiana
Hartford City
The Board of Governors announced the promotion of Stephen R. Malphrus, Assistant Director
in the Office of the Executive Director for Information Resources Management, to Associate
Director, effective February 2, 1987.
Pacesetter Bank
of Hartford City
Montana
Billings . . . First Trust Company of Montana
Texas
Fort Worth
Fort Worth State Bank
Utah
Salt Lake City
Lockhart Company
213
Legal Developments
AMENDMENT
TO REGULATION
AA
The Board of Governors is granting in part the request
by the state of New York for an exemption from the
cosigner provision of the Board's Credit Practices
Rule, Subpart B of Regulation AA, Unfair or Deceptive Acts or Practices.
Effective January 22, 1987, the Board grants, pursuant to Subpart B of 12 C.F.R. Part 227, an exemption
as follows:
Part 227—Unfair or Deceptive Acts or
Practices
1. The authority citation for 12 C.F.R. Part 227 continues to read as follows:
Authority:
93-637.
§ 18(f), FTC A, as amended by Pub.L.
2. The exemption requested by the state of New York
to Subpart B of Regulation AA, the Credit Practices
Rule, is granted in part, as follows:
ORDER
The state of New York has applied for an exemption
from the cosigner provision of the Board's Credit
Practices Rule which became effective January 1,
1986. Pursuant to section 227.16 of Regulation A A, the
Board has determined that the relevant laws of this
state are substantially equivalent to the federal law and
that the state administers and enforces its laws effectively. The Board hereby grants the exemption as
follows:
Effective January 22, 1987, consumer credit transactions
and consumer credit accounts under $25,000 that are
subject to New York General Obligations Law § 15-702
and N e w York General Business Law § 349 are exempt
from the cosigner provision of the Board's Credit Practices Rule, 12 C.F.R. § 227.14. Consumer credit transactions and accounts over $25,000 remain subject to the
Board's Credit Practices rule; however, compliance with
the relevant provisions of the N e w York law will constitute compliance with the Board's rule. If the relevant
New York law is amended to remove or increase the
$25,000 limitation on consumer credit transactions and
accounts the exemption will automatically extend to
those transactions.
This exemption does not apply to transactions in
which a federally chartered institution is a creditor.
ORDERS ISSUED UNDER BANK HOLDING
COMPANY ACT, BANK MERGER ACT, BANK
SERVICE CORPORATION ACT, AND FEDERAL
RESERVE ACT
Orders Issued Under Section 3 of the Bank
Holding Company Act
AmBank Holding Company of Colorado
St. Paul, Minnesota
Order Approving
Company
Formation of a Bank
Holding
AmBank Holding Company of Colorado, St. Paul,
Minnesota, has applied for the Board's approval under
section 3(a)(1) of the Bank Holding Company Act
("Act") (12 U.S.C. § 1842(a)(1)) to become a bank
holding company by acquiring AmBank Holding Company ("AmBank"), Burns Bancorporation ("Burns")
and FAB Bancorporation, Inc. ("FAB"), all of St.
Paul, Minnesota (collectively "Companies"). Applicant would indirectly acquire American National
Bank, Scottsdale, Arizona ("ANB"), Burns National
Bank of Durango, Durango, Colorado ("Burns
Bank"), and First American Bank, N.A., Colorado
Springs, Colorado ("FABank").
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)).
Applicant is a non-operating corporation with no
subsidiaries formed for the purpose of becoming a
bank holding company by acquiring three bank holding
companies affiliated by common ownership, and their
subsidiary banks. Thus, this proposal represents a
restructuring of existing ownership interests.
214
Federal Reserve Bulletin • March 1987
Section 3(d) of the Act (12 U.S.C. § 1842(d)), the
Douglas Amendment, prohibits the Board from approving an application by a bank holding company to
acquire control of any bank located outside of the
holding company's home state, 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." Applicant's
home state for purposes of section 3(d) of the Act is
Colorado since the total deposits of Applicant's two
proposed Colorado subsidiary banks will exceed those
of its proposed Arizona subsidiary bank. The statute
laws of Arizona authorize, with the approval of the
Arizona Superintendent of Banks, an out-of-state bank
holding company, including a Colorado bank holding
company such as Applicant, to acquire an Arizona
bank, such as ANB, that had applied to operate in
Arizona before May 31, 1984.1 The Arizona Superintendent of Banks has approved the acquisition of
AmBank by Applicant. Accordingly, approval of Applicant's proposal to acquire a bank in Arizona is not
barred by the Douglas Amendment.
Burns and FAB are bank holding companies located
in Colorado, controlling total deposits of $43.9 million
and $35 million respectively and each holds less than
0.25 percent of the total deposits in commercial banking organizations in the state. 2 AmBank is a bank
holding company located in Arizona, controlling deposits of $21.5 million, representing 0.1 percent of the
total deposits in commercial banking organizations in
the state. 3 Consummation of this proposal would not
have a significant effect upon the concentration of
banking resources in either Colorado or Arizona.
ANB, Burns Bank and FABank operate in different
banking markets. Principals of Applicant are not affiliated with any other depository organization in any of
those markets. This proposal would not result in any
adverse effects upon competition in any relevant market. Accordingly, the Board concludes that competitive considerations under the Act are consistent with
approval.
In its evaluation of Applicant's managerial resources, the Board has considered certain violations
by ANB and Burns Bank of the Currency and Foreign
Transactions Reporting Act ("CFTRA") and the regulations thereunder. 4 The violations, which appear to
1. Arizona Revised Statutes §§ 6-322 and 6-323 (effective October 1, 1986).
2. Colorado banking data are as of December 31, 1985.
3. Arizona banking data are as of March 31, 1986.
4. 31 U.S.C. § 5311, et seq.\31 C.F.R. § 103.
be comparatively limited in scope, have been corrected and subsequent examinations of the two banks did
not reveal any additional violations. The sufficiency of
the compliance procedures adopted to address
CFTRA violations of Companies' subsidiary banks
has been reviewed by examiners from the Office of the
Comptroller of the Currency. The Board also has
consulted with appropriate enforcement agencies, and
has considered the banks' past record of compliance
with the law. For the foregoing reasons, and based
upon a review of all the facts of record, the Board finds
the managerial resources of Applicant, Companies and
Companies' subsidiary banks to be consistent with
approval.
In evaluating this application the Board has also
considered the financial resources and future prospects of Applicant, Companies, Companies' subsidiary banks and the chain of affiliated banks controlled
by Applicant's principal. The Board has emphasized
that capital adequacy is an especially important factor
in the analysis of bank holding company proposals and
that under its Guidelines 5 it will take into consideration both the stated primary capital ratio and the
primary capital ratio after deducting intangibles. In its
assessment of Applicant's capital adequacy and the
capital adequacy of the chain of banks affiliated
through ownership by Applicant's principal, the Board
has relied on the record of improvement in the chain's
capital ratios and particularly in the improvement in
the ratios after deducting intangibles. Moreover, Applicant has submitted a plan that would cause the
tangible capital ratio of Applicant and the chain of
affiliated banks to reach 5.5 percent prior to year end.
Based upon these facts and the commitments of Applicant, the Board concludes that the financial resources
and future prospects of Applicant, Companies, their
respective banks and affiliated banks are consistent
with approval. Considerations relating to the convenience and needs of the communities to be served also
are consistent with approval of this application.
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. The transactions 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 Kansas City, acting
pursuant to delegated authority.
5. Capital Adequacy Guidelines, 12 C.F.R. Part 225, Appendix A.
Legal Developments
By order of the Board of Governors, effective
January 27, 1987.
Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, and Heller. Absent and not voting:
Chairman Volcker.
JAMES M C A F E E
[SEAL]
Associate
Secretary of the Board
Maui Bancshares, Inc.
Tacoma, Washington
Order Approving Formation of a Bank Holding
Company
Maui Bancshares, Inc., Tacoma, Washington, has
applied for the Board's approval under section 3(a)(1)
of the Bank Holding Company Act of 1956, as amended ("BHC Act") (12 U.S.C. § 1842(a)(1)), to become
a bank holding company by acquiring 100 percent of
the voting shares of Bank of Maui, N.A., Kahului,
Maui, Hawaii ("Bank").
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the BHC 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 BHC Act (12 U.S.C. § 1842(c)).
Applicant, a nonoperating Washington corporation
with no subsidiaries, was organized for the purpose of
becoming a bank holding company by acquiring Bank,
which holds deposits of $9.5 million.1 Upon consummation of this proposal, Applicant would acquire
Bank, which controls 0.12 percent of total deposits in
Hawaii. Bank operates in the Maui banking market, 2
where it controls 1.8 percent of the deposits in commercial banks in the market and ranks fifth out of ten
banks in the market. 3 The principals of Applicant are
not associated with any other banking organization in
this market. Consummation of the proposed acquisition would not result in any adverse effects upon
competition or increase the concentration of banking
resources in any relevant area.
215
prospects of Applicant and Bank are consistent with
approval of this application. 4 Considerations relating
to the convenience and needs of the community to be
served also are consistent with approval of the application.
Based upon the foregoing and other facts of record,
the Board has determined that the application should
be and hereby is approved. 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 San Francisco, acting pursuant to delegated authority.
By order of the Board of Governors, effective
January 27, 1987.
Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, and Heller. Absent and not voting:
Chairman Volcker.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Mountaineer Bankshares of West Virginia, Inc.
Martinsburg, West Virginia
Order Approving Acquisition
of a Bank
Mountaineer Bankshares of West Virginia, Inc., Martinsburg, West Virginia, a bank holding company
within the meaning of the Bank Holding Company Act
(12 U.S.C. § 1841 et seq. ("BHC Act")), has applied
for the Board's approval under section 3(a)(3) of the
BHC Act (12 U.S.C. § 1842(a)(3)) to acquire Bank of
Wadestown, Fairview, West Virginia ("Bank").
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the BHC 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 BHC Act (12 U.S.C. § 1842(c)).
In light of certain commitments made by Applicant,
the financial and managerial resources and future
1. Deposit data are as of March 31, 1986.
2. The Maui banking market consists of the Island of Maui, Hawaii.
3. Market data are as of June 30, 1985.
4. The Board has considered comments in opposition to the application from Royal Holdings Limited, a Hawaii corporation that alleges
that Bank's Board of Directors precluded the shareholders of Bank
from having the opportunity to consider Royal's competing bid for
Bank. Applicant has responded in detail to these comments. The
comments in opposition to the application raise some arguments that
are beyond the scope of the factors the Board is required to consider
under the BHC Act, and, when substantively considered, do not
reflect adversely on the managerial factors the Board must consider
and, thus, do not provide a basis for denial of the application.
216
Federal Reserve Bulletin • March 1987
Applicant, the fourth largest commercial banking
organization in the state of West Virginia, controls
three subsidiary banks with total deposits of $298.1
million, representing 2.4 percent of total deposits in
commercial banking organizations in the state. 1 Bank
is the 130th largest commercial banking organization in
the state, controlling total deposits of $22.1 million,
representing 0.2 percent of total deposits in commercial banking organizations in the state.
Both Applicant and Bank operate in the Marion
County banking market. 2 Applicant is the third largest
of seven commercial banking organizations in the
market, controlling 24.2 percent of total deposits in
commercial banks in the market.3 Bank is the fifth
largest commercial banking organization in the market, controlling 5 percent of the total deposits in
commercial banks in the market. Upon consummation
of this proposal, Application would become the largest
commercial banking organization in the market and
would control 29.2 percent of total deposits in commercial banks in the market. The market's four-firm
concentration ratio would increase from 88 percent to
93.1 percent and the Herfindahl-Hirschman Index
("HHI") would increase by 242 points to 2492. 4
Although the proposed acquisition would eliminate
some existing competition in the market, the Board
has concluded that the effect of this proposal on
existing competition is mitigated by the extent of
competition offered by thrift institutions in the market. 5 Two thrift institutions operate in the market,
controlling 18.4 percent of total deposits in the market.
These institutions compete with commercial banks in
the market as providers of NOW accounts and consumer loans. Accordingly, in view of the competition
provided by thrift institutions, 6 the fact that several
competitors—five commercial banks and two thrift
institutions—would remain in the market following
consummation, and other facts of record, the Board
concludes that consummation of the proposal is not
likely to substantially lessen competition in the Marion
County banking market.
The financial and managerial resources of Applicant, its subsidiaries and Bank are consistent with
approval. Considerations relating to the convenience
and needs of the community to be served are also
consistent with approval.
Based upon the foregoing and other facts of record,
the Board has determined that the proposed acquisition is in the public interest and that the application
should be, and hereby is, approved. The acquisition
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 the latter period is extended for good
cause by the Board or the Federal Reserve Bank of
Richmond, acting pursuant to delegated authority.
By order of the Board of Governors, effective
January 20, 1987.
Voting for this action: Chairman Volcker and Governors
Johnson, Seger, Angell, and Heller.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the
Board
Rainier Bancorporation
Seattle, Washington
Order
Bank
1. All banking data are as of June 30, 1986. Applicant has since
received approval to acquire two additional banks.
2. The Marion County banking market is defined as Marion County, West Virginia, including the Fairmont RMA.
3. All market data are as of June 30, 1985.
4. Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,823 (June 29, 1984)), any market in which the
post-merger HHI is over 1800 is considered highly concentrated, and
the Department is likely to challenge a merger that increases the HHI
by more than 50 points unless other factors indicate that the merger
will not substantially lessen competition. The Department of Justice
has informed the Board that a bank merger or acquisition generally
will not be challenged (in the absence of other factors indicating an
anticompetitive effect) unless the post-merger HHI is at least 1800 and
the merger increases the HHI by at least 200 points.
5. The Board has previously determined that thrift institutions have
become, or at least have the potential to become, major competitors of
banks. National City Corporation, 70 FEDERAL RESERVE BULLETIN
7 4 3 ( 1 9 8 4 ) ; NCNB
Corporation,
(1984).
7 0 FEDERAL RESERVE B U L L E T I N 2 2 5
Approving
Acquisition
of a State
Savings
Rainier Bancorporation, Seattle, Washington, a bank
holding company within the meaning of the Bank
Holding Company Act ("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 all of the voting
shares of United Bank, A Savings Bank, Tacoma,
6. If 50 percent of the deposits held by thrift institutions in the
Marion County banking market were included in the calculation of
market concentration, the share of total deposits held by the four
largest organizations in the market would increase to 84.9 percent.
Applicant's market share would increase by 4.5 percent to 26.2
percent and the HHI would increase by 196 points to 2093 upon
consummation of the proposal.
Legal Developments
217
Washington ("United Bank"), a state savings bank
whose deposits are insured by the Federal Deposit
Insurance Corporation.
Notice of the application, affording interested persons an opportunity 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.
The Board has previously determined that a state
savings bank is a "bank" under section 2(c) of the Act
if it accepts demand deposits, engages in the business
of making commercial loans, is not chartered by the
Federal Home Loan Bank Board, and does not have
its deposits insured by the Federal Savings and Loan
Insurance Corporation ("FSLIC"). 1 United Bank accepts demand deposits and engages in the business of
making commercial loans; it is state-chartered and its
deposits are not insured by the FSLIC. Accordingly,
United Bank is a "bank" for purposes of the Act, and
this application has been considered in light of the
requirements of section 3 of the Act pertaining to the
acquisition of banks.
would continue to be the second largest banking
organization, with deposits of $3.5 billion, representing 25.2 percent of total market deposits. The Seattle
banking market is considered highly concentrated,
with a Herfindahl-Hirschman Index ("HHI") of 1880.
Upon consummation, the HHI would increase by 132
points to 2012.5
Although consummation of the proposal would eliminate some existing competition between Applicant
and United Bank in the Seattle banking market, numerous other commercial banking organizations
would remain as competitors in the market after
consummation. In addition, the presence of 35 thrift
institutions that control approximately 38.9 percent of
the market's total deposits mitigates the anticompetitive effects of the transaction. 6 Thrift institutions already exert a considerable competitive influence in the
market as providers of NOW accounts and consumer
loans. In addition, several of the thrift institutions
make commercial loans and provide an alternative for
such services in the Seattle market. Based upon the
above considerations, the Board concludes that consummation of the proposal is not likely to substantially
lessen competition in the Seattle banking market.7
Applicant's lead bank, Rainier National Bank, Seattle, Washington ("Rainier Bank"), is the second largest commercial banking organization in Washington,
with deposits of $4.9 billion, representing 21.5 percent
of the total deposits in commercial banks in the state. 2
United Bank, the ninth largest banking organization in
Washington, controls total deposits of $442 million, or
1.9 percent of state deposits. 3 Upon consummation,
Rainier would remain the second largest banking organization, with total deposits of $5.3 billion, or 23
percent of total deposits in the state. Consummation of
the proposed transaction would not have a significant
effect on the concentration of banking resources in
Washington.
Rainier competes with United Bank in four banking
markets. In the Seattle banking market, Rainier is the
second largest of 40 commercial banking organizations
and controls deposits of $3 billion, which represents
22.1 percent of total deposits in commercial banks in
the market. 4 United Bank is the seventh largest banking organization with deposits of $429 million, which
represents 3.1 percent of total deposits in commercial
banks in the market. Upon consummation, Applicant
In the Bremerton banking market, Rainier is the
largest of 12 commercial banking organizations and
controls deposits of $106 million, which represents
23.1 percent of total deposits in the market. 8 United
Bank is the tenth largest banking organization, with
deposits of $13 million, which is 2.8 percent of total
deposits in the market. Upon consummation, Applicant would continue to be the largest organization,
with deposits of $119 million, representing 26 percent
5. Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,823 (June 29, 1984)), any market in which the
post-merger HHI is over 1800 is considered highly concentrated, and
the Department is likely to challenge a merger that increases the HHI
by more than 50 points, unless other facts of record indicate that the
merger will not substantially lessen competition. The Department has
informed the Board that a bank merger or acquisition generally will
not be challenged (in the absence of other factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the
merger increases the HHI by at least 200 points.
6. The Board has previously indicated that thrift institutions have
become, or have the potential to become, major competitors of
commercial banks. National City Corporation, 70 FEDERAL RESERVE
B U L L E T I N 7 4 3 ( 1 9 8 4 ) ; NCNB
tion,
1. See,
e.g.,
Excel
Bancorp,
731 (1986); First Fidelity
Inc.,
7 2 FEDERAL RESERVE B U L L E T I N
Bancorporation,
72 FEDERAL RESERVE
BULLETIN 4 8 7 ( 1 9 8 6 ) .
2. All banking data are as of June 30, 1985.
3. United Bank is treated as a commercial bank in this analysis.
4. The Seattle banking market is approximated by the SeattleTacoma-Everett RMA, which consists of portions of King, Pierce,
Snohomish, Kitsap, and Island Counties in Washington.
Bancorporation,
7 0 F E D E R A L RESERVE
BULLETIN 2215 (1984); GeneralBancshares
Corporation, 69 FEDERAL
RESERVE BULLETIN 802 (1983); First Tennessee National
Corpora6 9 FEDERAL RESERVE B U L L E T I N 2 9 8 ( 1 9 8 3 ) .
7. If 50 percent of deposits held by thrift institutions in the Seattle
banking market were included in the calculation of market concentration, Rainier would be the second largest of 75 depository organizations, with 16.5 percent of market deposits. Applicant would remain
the 2nd largest depository institution, controlling 18.9 percent of the
market's deposits upon consummation. The HHI would increase by
76 points to 1149.
8. The Bremerton banking market is approximated by the Bremerton RMA, which consists of a portion of Kitsap County, Washington.
218
Federal Reserve Bulletin • March 1987
of total market deposits. The Bremerton banking market is considered moderately concentrated, with an
HHI of 1500. Upon consummation, the HHI would
increase by 129 to 1629.
In the Okanogan County banking market, Rainier is
the fourth largest of six commercial banking organizations and controls deposits of $37 million, which
represents 21.4 percent of total deposits in the market. 9 United Bank is represented in the market with an
office that had no deposits as of June 30, 1985.
Consequently, upon consummation, Rainier's market
size and rank would be unchanged. The banking
market is considered highly concentrated with an HHI
of 2440.
In the Yakima County banking market, Rainier is
the largest of nine commercial banking organizations
and controls deposits of $189 million, which represents
25.9 percent of total deposits in the market. 10 United
Bank is represented in the market with an office that
had deposits of less than $500,000 as of June 30, 1985.
Upon consummation, Rainier's market size would be
essentially unchanged and Rainier would continue to
rank as the largest organization. The banking market is
considered highly concentrated with an HHI of 1801.
Upon consummation, the HHI would be unchanged.
Based on the foregoing, the Board concludes that
consummation of the proposed transaction is not likely
to substantially lessen competition in any relevant
market.
United Bank engages in certain real estate investment and development activities authorized by state
law. The Board has requested comment on proposed
regulations that would permit bank holding companies
to engage in real estate investment activities within
certain limits.11 Pending completion of the Board's
rulemaking on those issues, the Board has, in a limited
number of instances, permitted state savings banks to
continue to engage in real estate investment and
development activities, provided that the savings
banks limit the level and scope of those activities and
maintain adequate capital to support those activities. 12
Applicant has made commitments that so limit United
Bank's real estate activities, and has agreed to conform those activities to the results of the Board's
9. The Okanogan County banking market is approximated by
Okanogan County, Washington.
10. The Yakima County banking market is approximated by Yakima County, Washington.
11. 52 Federal Register 543 (1987).
12. See,
e.g.,
Excel
Bancorp,
Inc.,
7 2 FEDERAL RESERVE B U L L E -
TIN 731 (1986); First Fidelity Bancorp oration, 72 FEDERAL RESERVE
BULLETIN 4 8 7 ( 1 9 8 6 ) .
rulemaking. Accordingly, subject to those commitments, the Board has determined that United Bank's
real estate investment and development activities do
not preclude approval of the application.
The financial and managerial resources and future
prospects of Applicant and United Bank are generally
satisfactory and consistent with approval of the application.
In considering the convenience and needs of the
communities to be served, the Board has taken into
account the records under the Community Reinvestment Act ("CRA"), 12 U.S.C. §§ 2901-05, of Applicant's subsidiary banks and of United Bank. The CRA
requires the federal bank supervisory agencies to
encourage banks to help meet the credit needs of the
local communities in which they are chartered, consistent with the banks' safe and sound operation. To
that end, the CRA requires the appropriate bank
supervisory agency to assess a bank's record in meeting the credit needs of its entire community, including
low- and moderate-income neighborhoods, and requires the Board to take such records into account in
evaluating a bank holding company's application to
acquire a bank.
In reviewing the CRA records of Rainier Bank and
United Bank, the Board has considered the comments
of two protesting community organizations, South
End Seattle Community Organization and South East
Effective Development, both of Seattle, Washington
(together "Protestants"). Protestants have generally
raised concerns about whether those banks have been
meeting the needs of Protestants' neighborhood, the
South End of Seattle.
Protestants' comments on Rainier Bank's CRA record are identical to those made by Protestants in
connection with a previous application. Rainier Bancorporation,
73
FEDERAL
RESERVE
BULLETIN
55
(1987). The Board considered those comments and
concluded that the CRA records of Applicant's subsidiary banks were consistent with approval of the application. Protestants have offered no new evidence or
arguments regarding Rainier Bank's record. For the
reasons set forth in the Board's Statement regarding
that application, the Board concludes that the CRA
records of Applicant's subsidiary banks are consistent
with approval of this application.
The Board has considered United Bank's CRA
record in light of Protestants' comments. The Board
concludes that United Bank's delineation of the relevant community is reasonable, does not arbitrarily
exclude low- and moderate-income or minority areas,
and complies with applicable regulations. 12 C.F.R.
§ 345.3. The Board further concludes that United
Bank's CRA record is consistent with approval of the
application.
Legal Developments
219
Based upon all of the evidence of record, including
Applicant's commitments and Protestants' comments,
the Board concludes that the CRA records of Applicant's subsidiary banks, and convenience and needs
considerations generally, are consistent with approval
of the application. 13
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. The acquisition 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
that period is extended for good cause by the Federal
Reserve Bank of San Francisco, pursuant to delegated
authority, or by the Board.
By order of the Board of Governors, effective
January 27, 1987.
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been duly published (51 Federal Register 39,587
(1986)). 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)).
Applicant is the 122nd largest depository institution
among commercial banks and thrift institutions in
Massachusetts, with approximately $132 million in
domestic deposits, representing 0.2 percent of the total
deposits in commercial banks and thrift institutions in
Massachusetts. 2 Chicopee is the 242nd largest depository institution among commercial banks and thrift
institutions in Massachusetts, with domestic deposits
of approximately $57 million, representing 0.1 percent
of the total deposits in commercial banks and thrift
institutions in Massachusetts.
Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, and Heller. Absent and not voting:
Chairman Volcker.
Upon consummation of this proposal, Applicant
would become the 92nd largest depository institution
in Massachusetts with $189 million in domestic deposits, representing 0.3 percent of the total deposits in
commercial banks and thrift institutions in the state.
Accordingly, consummation of this proposal would
have no significant effect on the concentration of
banking resources in Massachusetts.
Both Applicant and Chicopee compete in the
Springfield banking market. 3 Applicant is the 17th
largest depository institution among commercial banks
and thrift institutions in the market, with 2.1 percent of
deposits in the market. Upon consummation of the
proposal, Applicant would become the 14th largest
depository institution in the market, with 2.7 percent
of deposits in the market. The Herfindahl-Hirschman
Index would increase from 750 to 753. Accordingly,
consummation of the proposal would not result in any
significant adverse effects on existing or potential
competition or increase the concentration of banking
resources in any relevant area.
Chicopee engages through a subsidiary in certain
real estate investment and development activities authorized pursuant to state law. The Board has request-
JAMES M C A F E E
[SEAL]
Associate
Secretary of the Board
Westbank Corporation
West Springfield, Massachusetts
Order Approving Acquisition
of a Bank
Westbank Corporation, West Springfield, Massachusetts, a bank holding company within the meaning of
the Bank Holding Company Act of 1956, as amended
(12 U.S.C. § 1841 et seq.) (the "Act"), has applied for
the prior approval of the Board under section 3 of the
Act (12 U.S.C. § 1842) to acquire Chicopee Co-operative Bank, Chicopee, Massachusetts ("Chicopee"), a
state-chartered co-operative bank in stock form, the
deposits of which are insured by the Federal Deposit
Insurance Corporation.1
13. In considering Protestants' request for a public meeting, the
Board finds that Protestants and Applicant have had ample opportunity to present evidence and arguments in writing, and concludes that
Protestants have not raised issues that would render a public meeting
appropriate. Accordingly, the Board has denied Protestants' request
for a public meeting.
1. The Board has previously determined that state-chartered stock
savings banks, that are not covered by the exemption created by the
Garn-St Germain Depository Institutions Act of 1982 for thrift institutions insured by the Federal Savings and Loan Insurance Corporation
("FSLIC") and that accept demand deposits and engage in the
business of making commercial loans are within the definition of
"bank" contained in section 2(c) of the Act. Chicopee accepts
demand deposits and engages in the business of making commercial
loans and its deposits are not insured by the FSLIC. Accordingly,
Chicopee is a "bank" for purposes of the Act. The application has
therefore been considered in light of the requirements of section 3 of
the Act pertaining to the acquisition of banks.
2. Domestic deposit data are as of September 30, 1986. State data
are as of March 31, 1986. Market data are as of June 30, 1985.
3. The Springfield banking market is approximated by the Springfield Ranally Metropolitan Area ("RMA") minus the town of Brimfield plus the towns of Blandford, Chester, Granville, Hardwick,
Huntington, Montgomery, Otis, Tolland, Ware, Warren, and Worthington.
220
Federal Reserve Bulletin • March 1987
ed comment regarding the permissible scope and extent of real estate investment and development
activities of holding company banks and their subsidiaries. 4 Pending completion of the Board's rulemaking
on these issues, the Board has, in a limited number of
instances, permitted state-chartered savings banks to
continue to engage in real estate investment and
development activities, provided that the savings
banks limit the level and scope of these activities and
maintain adequate capital to support the activities. 5
Applicant has provided commitments that so limit
Chicopee's real estate activities, and has committed to
conform these activities to the results of the Board's
rulemaking. Accordingly, subject to these commitments, the Board has determined that Chicopee's real
estate investment and development activities do not
preclude approval of this application.
The financial and managerial resources of Applicant
and Bank are consistent with approval. Considerations
relating to the convenience and needs of the communities to be served also are consistent with approval.
Based on the foregoing and all the facts of record,
including certain commitments made by Applicant, the
Board has determined that the application should be,
and hereby is, approved. 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
January 20, 1987.
Voting for this action: Chairman Volcker and Governors
Johnson, Seger, Angell, and Heller.
JAMES M C A F E E
[SEAL]
Associate
Citicorp, New York, New York, a bank holding company within the meaning of the Bank Holding Company Act, 12 U.S.C. § 1841 et seq. ("Act"), has applied
pursuant to section 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)) and section 225.23(a)(3) of the Board's
Regulation Y (12 C.F.R. § 225.23(a)(3)), to engage de
novo through its wholly owned subsidiary, Citicorp
Futures Corporation, New York, New York
("CFC"), in the provision of advisory services with
respect to futures contracts on stock indexes and
options on such futures contracts. CFC would offer
such advisory services with respect to the Standard
and Poor's 100 Stock Price Index futures contract
("S&P 100"), the Standard and Poor's 500 Stock Price
Index futures contract ("S&P 500"), and options on
the S&P 500, all of which are currently traded on the
Index and Option Division of the Chicago Mercantile
Exchange. Applicant has previously received approval
to execute and clear, through CFC, these futures
contracts and options on futures contracts. 1 Applicant
proposes to offer these services to institutional customers in the United States and abroad. 2
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 public interest factors, has been duly published (50 Federal Register 27,684 (1985)). The time for
filing comments has expired, and the Board has considered the application and all comments received in
light of the public interest factors set forth in section
4(c)(8) of the Act.
Applicant, with total consolidated assets of $186.0
billion, 3 is the largest banking organization in the
United States. It presently operates eight banking
subsidiaries and engages, directly and through subsidiaries, in a variety of nonbanking activities. CFC is a
futures commission merchant ("FCM") registered
with the Commodity Futures Trading Commission
Secretary of the Board
Orders Issued Under Section 4 of the Bank
Holding Company Act
1. Citicorp
Order Approving Application to Provide Advisory
Services With Respect to Futures Contracts on Stock
Indexes and Options on Such Futures Contracts
4. 52 Federal Register 543 (1987).
5. See, e.g., First Fidelity Bancorporation,
BULLETIN 4 8 7 ( 1 9 8 6 ) .
7 3 FEDERAL RESERVE B U L L E T I N 1 5 7 ( 1 9 8 7 ) .
2. Citicorp will provide the proposed advisory services only to
"institutional customers," as defined in the Board's order approving
the application of National Westminster Bank PLC and NatWest
Holdings, Inc., to engage in certain nonbanking activities. National
Citicorp
New York, New York
72 FEDERAL RESERVE
Westminster
Bank
PLC,
7 2 F E D E R A L RESERVE B U L L E T I N 5 8 4 ( 1 9 8 6 )
("NatWest"). The definition of "institutional customer" in NatWest
includes a person that is: a bank; an insurance company; a registered
investment company; a corporation, partnership, proprietorship, organization or institutional entity that regularly invests in the types of
securities as to which investment advice is given; an employee benefit
plan with assets exceeding $5,000,000; a natural person whose net
worth exceeds $5,000,000; a broker-dealer or option trader registered
under the Securities Exchange Act of 1934, or other securities
professional; and an entity all of the equity owners of which are
institutional customers.
3. As of September 30, 1986.
Legal Developments
("CFTC") that engages in the execution and clearance
of options contracts on bullion, foreign exchange,
government securities and money market instruments,
and options on futures contracts based on these commodities and instruments on major commodities exchanges for nonaffiliated persons. 4 CFC also engages
in the provision of advisory services with respect to
certain of these options, pursuant to previous approval
by the Board. 5
The advisory services that Applicant proposes to
provide consist of general research and advice on
market conditions and hedging strategies, client account information and reconciliation of trades, and
communication linkage between clients and exchange
floors in connection with CFC's futures commission
merchant activities. These services would be offered
to customers either as part of an integrated package of
services or for a separate fee.
The Board has previously approved as closely related to banking the execution and clearance of futures
contracts on stock indexes and options thereon. 6 The
Board has not, however, considered a proposal to
provide investment advisory services in connection
with the execution and clearance of such instruments.
In order to approve this application, the Board is
required to determine whether the proposed activity is
so closely related to banking as to be a proper incident
thereto within the meaning of section 4(c)(8) of the
Act. In determining whether an activity is a "proper
incident" to banking, the Board must consider whether the activity can reasonably be expected to produce
benefits to the public that outweigh possible adverse
effects.
The Board has determined that the combination of
advisory and brokerage services for financially sophisticated customers with respect to financially related
futures contracts, including bullion, foreign exchange,
government securities, certificates of deposit, certain
other money market instruments, and a municipal
bond index, is closely related to banking.7 In addition,
4. Under an accord between the Securities and Exchange Commission ("SEC") and the CFTC adopted by Congress (Pub. L. No. 97444, 96 Stat. 2294, 7 U.S.C. § 2(a) (1982) and Pub. L. No. 97-303, 96
Stat. 1409, 15 U.S.C. § 77b (1982)), the SEC has exclusive jurisdiction
over options on U.S. government securities and money market
instruments. The CFTC has overlapping jurisdiction with the SEC
over options on foreign currency and has exclusive jurisdiction over
options on bullion and on futures.
5 . Citicorp,
7 0 FEDERAL RESERVE BULLETIN 5 9 1 ( 1 9 8 4 ) .
6. J.P. Morgan
& Co., Incorporated,
71 FEDERAL RESERVE B U L LETIN 2 5 1 ( 1 9 8 5 ) .
7. 12 C.F.R. § 225.25(b)( 19); Bankers Trust New York
71 FEDERAL RESERVE BULLETIN 111 ( 1 9 8 5 ) .
Corporation,
221
the Board has approved as closely related to banking
the combination of investment advice and securities
b r o k e r a g e . National
Westminster
Bank
PLC,
72 FED-
ERAL RESERVE B U L L E T I N 5 8 4 ( 1 9 8 6 ) ( " N a t W e s t " ) . I n
NatWest, the Board found that banks provided both
investment advisory and securities brokerage services, and that the combination of the two activities,
previously determined to be closely related to banking, would not result in an alteration of the functional
nature and scope of the combined activities or their
close relationship to banking. Thus, the Board concluded that the combination of the two activities was
closely related to banking. Similarly, the combination
of futures advisory and execution and clearance services as proposed by Applicant would not result in an
alteration of the functional nature and scope of the two
component services or their close relationship to banking.
The futures advisory services that Applicant proposes to provide are essentially identical to the advisory services previously approved by the Board by
regulation and order with respect to other financially
related futures contracts. Thus, for the reasons specified above and in the Board's previous determinations
regarding FCM advisory services, the Board concludes that, in the manner proposed and subject to the
conditions set forth in sections 225.25(b)(18) and
225.25(b)(19) of Regulation Y, Applicant's proposal to
provide, through CFC, advisory services with respect
to futures contracts on stock indexes, and options
thereon, is closely related to banking.
In order to approve this application, the Board is
also required to determine that the performance of the
proposed activity by Applicant "can reasonably be
expected to produce benefits to the public . . . that
outweigh possible adverse effects . . . ." (12 U.S.C.
§ 1843(c)(8)).
The record indicates that consummation of Applicant's proposal can reasonably be expected to provide
benefits to the public. Applicant's performance of
these activities would provide added convenience to
those clients of Applicant and its subsidiaries that
trade in the cash, forward and futures markets for
these instruments. The Board expects that the de novo
entry of Applicant into the market for these services
would increase the level of competition among providers of these services already in operation. Accordingly, the Board concludes that the performance of the
proposed activities by Applicant can reasonably be
expected to provide benefits to the public.
The Board has considered the potential for adverse
effects that may be associated with this proposal. The
Board has previously determined that the combination
of investment advisory services and the execution and
clearance of futures contracts would not give rise to
222
Federal Reserve Bulletin • March 1987
adverse effects. 8 The Board found that the provision of
investment advisory services on futures contracts that
an FCM may execute and clear would not entail risks
or conflicts of interest different from those considered
and addressed by the Board in its approvals of FCM
execution and clearance services. In making its determination, the Board relied on the regulatory framework established by the CFTC for the trading of
futures contracts, and the conditions set forth in
Regulation Y with respect to the execution and clearance of futures contracts, including the requirement
that advice be limited to financially sophisticated
customers that have significant dealings or holdings in
the underlying commodities, securities or instruments.
Similarly, in NatWest the Board found that the
combination of investment advice and securities brokerage for institutional customers did not present the
potential for conflicts of interest and the other "subtle
hazards" that Congress identified with the combination of commercial banking and the securities business
and sought to avoid through passage of the GlassSteagall Act. 9 The Board relied on the facts that the
services proposed by NatWest would be limited to
institutional customers and that NatWest's brokerage
subsidiary would be separate from its banking affiliates.
As noted above, Applicant has limited its proposed
provision of advisory services to institutional customers, as defined in NatWest. In addition, Applicant
would be subject to the Board's regulations concerning FCMs, 10 which require, among other things, that
the activity be conducted through a separate subsidiary, be subject to the regulatory framework established pursuant to law by the CFTC for the trading of
futures and be limited to financial institutions and
other financially sophisticated customers that have
significant dealings or holdings in the underlying commodities, securities, or instruments.
The potential for adverse effects from Applicant's
proposal is further minimized by the fact that CFC will
provide advisory services only with respect to futures
contracts, and options thereon, on broad-based index-
8. 12 C.F.R. § 225.25(b)(19); Bankers Trust New York
Corporation,
es containing 100 or 500 securities, and will provide
only advisory services of a generalized nature.11
The Board has also considered possible adverse
effects from Applicant's proposed joint pricing of
futures advisory services and futures contract execution and clearance services. Applicant would price its
investment advisory services as part of a package of
services, but would also make its futures advisory
services available on a separate-fee basis to customers
who wish to receive only advisory services. In
NatWest, the Board found that the potential for
adverse effects associated with this type of pricing
would be reduced by the extensive regulatory framework to which NatWest's brokerage subsidiary would
be subject, by NatWest's limitation of its services to
institutional customers only, and by the fact that
NatWest's brokerage subsidiary would charge a separate fee for customers desiring only investment advice
or execution.
These same factors are present under Applicant's
proposal. As noted above, Applicant intends to price
its investment advisory services as part of a package of
services, but will also make its futures advisory services available on a separate-fee basis to customers
who wish to receive only advisory services. The Board
also notes that CFC is subject to regulation by the
CFTC, and, as noted above, CFC will provide advisory services only to financially sophisticated customers.
For these reasons, the Board concludes that the
limitations proposed by Applicant and required by the
Board's regulations would be sufficient to prevent any
significant conflicts of interest or unsound banking
practices.
Based upon the foregoing 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, subject to
commitments made by Applicant and the conditions
set forth in this Order.
This determination is also subject to all of the
conditions set forth in Regulation Y, including sections
225.4(d) and 225.23(b)(3) (12 C.F.R. §§ 225.4(d) and
225.23(b)(3)), and to the Board's authority to require
such modification or termination of the activities of a
bank holding company or any of its subsidiaries as the
71 FEDERAL RESERVE BULLETIN 111 ( 1 9 8 5 ) .
9. Investment Company Institute v. Camp, 401 U.S. 617 (1971);
Board of Governors v. Investment Company Institute, 450 U.S. 46
(1984). These subtle hazards include the possibilities that public
confidence in a bank might be impaired if the securities affiliate of the
bank performed poorly, that a bank might make unsound loans to the
securities affiliate or to companies in whose stock the affiliate had
invested, and that the bank might make loans to customers to be used
for the purchase of stocks.
10.
12 C . F . R . §§ 2 2 5 . 2 5 ( b ) ( 1 8 ) , ( 1 9 ) .
11. The Board's approval of this application does not authorize
Applicant to provide FCM advisory services related to futures contracts on stock indexes, and options thereon, based on individual
stocks or narrowly-based stock indexes. Applicant would be required
to receive the prior writteft Approval of the Federal Reserve Bank of
New York, in consultation with the Board's General Counsel, in order
to provide advisory services with respect to any additional broadbased futures contracts on stock indexes.
Legal Developments
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 made not later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of New York
pursuant to delegated authority.
By order of the Board of Governors, effective
January 23, 1987.
Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, and Heller. Absent and not voting:
Chairman Volcker.
JAMES M C A F E E
[SEAL]
Associate
Secretary of the Board
First Union Corporation
Charlotte, North Carolina
Order Approving an Application to Purchase and
Sell Precious Metals and Coins for the Account of
Customers
First Union Corporation, Charlotte, North Carolina, a
bank holding company within the meaning of the Bank
Holding Company Act, 12 U.S.C. § 1841 et seq.
("BHC Act"), has applied pursuant to section 4(c)(8)
of the BHC Act and section 225.23(a) of the Board's
Regulation Y, 12 C.F.R. § 225.23(a), to engage de
novo through its subsidiary, First Union Brokerage
Services, Inc., Charlotte, North Carolina ("FUBS"),
in the purchase and sale of gold and silver bullion and
coins for the account of its customers.
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published (51 Federal Register 40,515 (1986)).
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.
FUBS proposes to engage in the purchase and sale
of silver and gold bullion and coins for the account of
customers. FUBS will not engage in the purchase and
sale of platinum and palladium,1 nor will it deal in gold
or silver for its own account. In addition, FUBS does
not propose to extend credit, and does not propose to
offer investment advice to customers in connection
with the proposed services.
Applicant is a multibank holding company with 30
subsidiary banks in four states, controlling total deposits of approximately $12 billion. 2 FUBS has been
approved as a discount broker to engage in securities
brokerage activities permissible for bank holding companies under section 225.25(b)(15) of the Board's
Regulation Y, 12 C.F.R. § 225.25(b)(15).
The proposed activities of FUBS are essentially
identical to activities previously approved by the
Board. 3 In addition, banks have traditionally engaged
in the purchase and sale of gold and silver bullion. 4
Thus, the Board concludes that Applicant's proposal
to engage in the purchase and sale of bullion and coins
for the account of customers is closely related to
banking.
In order to approve this application, the Board is
also required to determine that the performance of the
proposed activities by Applicant "can reasonably be
expected to produce benefits to the public . . . that
outweigh possible adverse effects . . . ." (12 U.S.C.
§ 1843(c)(8)). Consummation of Applicant's proposal
will result in increased convenience to customers. In
addition, the Board expects that the entry of Applicant
into the market for these services will increase the
level of competition among providers of these services. Accordingly, the Board concludes that the performance of the proposed activities by Applicant can
reasonably be expected to produce benefits to the
public.
The Board has also considered the potential for
adverse effects that may be associated with this proposal. There is no evidence in the record that consummation of the proposed transactions would result in
any adverse effects such as decreased competition,
undue concentration of resources, unfair competition,
conflicts of interest, or unsound banking practices.
Applicant's proposal to buy and sell gold and silver
bullion and coins is a fee-generating, nonleveraged
activity that the Board believes would not have an
adverse effect on Applicant's financial resources. Accordingly, the financial and managerial resources of
Applicant and its subsidiaries overall are consistent
with approval of the application.
2. Data are as of September 30,
3. Texas American Bancshares,
LETIN 501 (1986); First Interstate
BULLETIN 467 (1985). See also The
1. In Standard and Chartered Banking Group Ltd., 38 Federal
Register 27,552 (1973), the Board found that the activities of dealing in
platinum and palladium were not authorized for national banks and
were not closely related to banking.
223
Corp.,
1986.
Inc., 72 FEDERAL RESERVE BULBancorp, 71 FEDERAL RESERVE
HongKong and Shanghai Banking
7 2 FEDERAL RESERVE B U L L E T I N 3 4 5 ( 1 9 8 6 ) ; Standard
and
Chartered Banking Group Ltd., 38 Federal Register 21,552 (1973).
4. See, e.g., 12 U.S.C. § 24(7) (national banks are explicitly permitted to buy and sell coins and bullion).
224
Federal Reserve Bulletin • March 1987
Based upon a consideration of all the facts of record,
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 all of the conditions
set forth in the Board's Regulation Y, including those
in sections 225.4(d) and 225.23(b) (12 C.F.R.
§§ 225.4(d) and 225.23(b)), and to the Board's authority to require such modification or termination of the
activities of a bank holding company or any of its
subsidiaries as the Board finds necessary to assure
compliance with the provisions and purposes of the
BHC Act and the Board's regulations and order issued
thereunder, or to prevent evasion thereof.
The activity 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 Richmond, pursuant
to delegated authority.
By order of the Board of Governors, effective
January 12, 1987.
Voting for this action: Chairman Volcker and Governors
Johnson, Seger, and Heller. Absent and not voting: Governor
Angell.
JAMES M C A F E E
[SEAL]
Associate
(1) the Standard & Poor's 100 Stock Price Index
futures contract, the Standard & Poor's 500 Stock
Price Index futures contract ("S&P 500"), options
on the S&P 500, and the Standard & Poor's Overthe-Counter 250 Stock Index futures contract, all of
which are currently traded on the Index and Option
Division of the Chicago Mercantile Exchange; (2)
the Major Market Index Maxi Stock Index futures
contract, the Major Market Index Mini Stock Index
futures contract, the Bond Buyer Municipal Bond
Index futures contract, and the GNMA Cash Settled
futures contract, all of which are currently traded on
the Chicago Board of Trade; (3) the New York
Stock Exchange ("NYSE") Composite Index futures contract, and options on the N Y S E Composite
Index futures, both of which are currently traded on
the New York Futures Exchange, a subsidiary of
the New York Stock Exchange; and (4) the Value
Line Futures (Maxi) and Value Line Futures (Mini)
Index contracts, both of which are currently traded
on the Kansas City Board of Trade.
Secretary of the Board
Saban, S.A.
Panama City, Panama
Republic New York Corporation
New York, New York
Order Approving Application to Execute and Clear
Futures Contracts on Stock Indexes, Options on
such Futures Contracts, and Futures Contracts on a
Municipal Bond Index and Government
National
Mortgage Association
Certificates
Saban, S.A., Panama City, Panama, and Republic
New York Corporation, New York, New York ("Republic"), bank holding companies within the meaning
of the Bank Holding Company Act, 12 U.S.C. § 1841
et seq. ("Act"), have applied pursuant to section
4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and section
225.23(a)(3) of the Board's Regulation Y (12 C.F.R.
§ 225.23(a)(3)) to engage de novo through their wholly
owned subsidiary, Republic Clearing Corporation,
New York, New York ("RCC"), in the execution and
clearance, on major commodity exchanges, of futures
contracts on stock indexes, options on such futures
contracts, and futures contracts on a municipal bond
index and Government National Mortgage Association
("GNMA") certificates.
RCC proposes to execute and clear:
Applicants propose to offer these services to major
corporations, financial institutions, and other sophisticated customers in the United States and abroad.
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 public interest factors, has been duly published (51 Federal Register 45,179 (1986)). The time for
filing comments has expired, and the Board has considered the application and all comments received in
light of the public interest factors set forth in section
4(c)(8) of the Act.
Saban, S.A., with total unconsolidated assets of
$193.5 million, holds 33.3 percent of the shares of
Republic New York Corporation. 1 Republic, with consolidated assets of $16.8 billion, 2 is the 10th largest
banking organization in New York. Republic operates
one subsidiary bank and engages through certain of its
subsidiaries in a variety of nonbanking activities. RCC
1. As of December 1, 1986. Saban, S.A., received approval on
October 1, 1986, to acquire up to an additional 3.3 percent of the
shares of Republic.
2. Banking data are as of June 30, 1986.
Legal Developments
is a futures commission merchant ("FCM") registered
with the Commodity Futures Trading Commission
("CFTC") that engages in the execution and clearance
of futures contracts on gold and silver, financial instruments and foreign currencies, and options on such
futures contracts. 3
The Board has previously determined that the execution and clearance of futures contracts and options
on futures contracts based on stock indexes, and of
futures contracts on a municipal bond index, are
closely related to banking. J.P. Morgan & Co. Incorporated,
71 FEDERAL RESERVE BULLETIN 251 (1985);
Bankers
Trust New
York Corporation,
71 FEDERAL
RESERVE BULLETIN 111 (1985). T h e e x e c u t i o n and
clearance of futures contracts on government securities is permissible under Regulation Y, 12 C.F.R.
§ 225.25(b)(18). The proposed activities of RCC are
essentially identical to those activities previously permitted pursuant to Regulation Y or approved by the
Board. Thus, the Board concludes that Applicants'
proposal to execute and clear futures contracts on the
proposed stock indexes, options thereon, and futures
contracts on a municipal bond index and GNMA
certificates is closely related to banking.
Under section 4 of the Act, the Board is also
required to determine that the performance of the
proposed activities by Applicants "can reasonably be
expected to produce benefits to the public . . . 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 Applicants' proposal would provide added convenience to those clients of Applicants
and their subsidiaries that trade in the cash, forward
and futures markets for those instruments. The Board
expects that the de novo entry of Applicants 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 Applicants can reasonably be expected to provide benefits
to the public.
Moreover, there is no evidence in the record that
consummation of the proposed FCM activities would
result in any adverse effects such as undue concentration of resources, decreased or unfair competition,
conflicts of interests, or unsound banking practices. In
addition, the Board has taken into account and has
3. Applicants and RCC have received approval for these activities.
Republic New York Corporation, 63 FEDERAL RESERVE BULLETIN
251 (1977); Republic New York Corporation , Order of March 2, 1984.
225
relied on the regulatory framework established pursuant to law by the CFTC for the trading of futures, as
well as the conditions set forth in section 225.25(b)(18)
of Regulation Y with respect to executing and clearing
futures contracts and options thereon.
The financial and managerial resources and future
prospects of Applicant are considered consistent with
approval. 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, based on all the facts of record and the commitments made by Applicants, and subject to the conditions in this Order, the Board has determined that the
proposed application should be, and hereby is, approved. This determination is subject to all of the
conditions set forth in Regulation Y, including sections
225.4(d) and 225.23(b)(3) (12 C.F.R. §§ 225.4(d) and
225.23(b)(3)), and to the Board's authority to require
such modification or termination of the activities of a
bank holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with, or to
prevent evasion of, the provisions and purposes of the
Act and the Board's regulations and orders issued
thereunder.
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 N e w York, pursuant
to delegated authority.
By order of the Board of Governors, effective
January 20, 1987.
Voting for this action: Chairman Volcker and Governors
Johnson, Seger, Angell, and Heller.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Sovran Financial Corporation
Norfolk, Virginia
Order Approving an Application
Management
Services
to Provide
Cash
Sovran Financial Corporation, Norfolk, Virginia, a
bank holding company within the meaning of the Bank
Holding Company Act of 1956, as amended (12 U.S.C.
§ 1841 et seq.) (the "Act"), has applied for the
Board's approval under section 4(c)(8) of the Act
(12 U.S.C. § 1843(c)(8)) and section 225.23 of the
Board's Regulation Y (12 C.F.R. § 225.23), to expand
226
Federal Reserve Bulletin • March 1987
the activities of its subsidiary, Sovran Investment
Corporation, Richmond, Virginia ("SIC"), to include
the provision of cash management services. 1
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been duly published (51 Federal Register
41,154 (1986)). The time for filing comments has
expired, and the Board has considered the application
and all comments received in light of the public
interest factors set forth in section 4(c)(8) of the Act.
Applicant, a multibank holding company, has total
consolidated assets of approximately $14.3 billion. 2
Applicant also engages through certain subsidiaries in
other nonbanking activities permissible for bank holding companies. 3
Applicant proposes to transfer to SIC the cash
management services for corporate and other institutional customers currently provided by Sovran Bank,
N.A. The cash management services to be offered by
SIC will be an account balance management service.
SIC will coordinate its cash management service for a
particular customer with a designated account officer
at Sovran Bank, N.A. or other bank affiliate of SIC. A
target demand deposit balance will be agreed upon by
the customer and the customer's bank account officer.
SIC personnel will monitor deposit account balances
daily, or as otherwise agreed upon, and advise the
customer of the account status, but the customer will
then determine what disposition to make of any excess
funds. When a customer has available excess funds
over the targeted balance, SIC employees will discuss
with such corporate and other institutional customer
prevailing money market conditions and available
short-term investment alternatives. Customers may
also pre-designate a specified list of investment alter-
natives which SIC will utilize to the extent they are
readily obtainable. 4 There will be a specific fee for the
service.
This particular service will be offered by SIC, exclusively to corporate and other institutional customers.
In determining whether an activity is permissible
under section 4(c)(8) of the Act, the Board must first
determine that the activity is "closely related to banking or managing or controlling banks." The Board has
not previously found the provision of cash management services, standing alone, to be closely related to
banking. The Board has approved applications which
included cash management services when offered as
an incident to securities brokerage activities authorized by section 225.25(b)(15), however. 5 The cash
management services here might be viewed as ancillary to activities authorized in section 225.25(b)(16) of
Regulation Y (12 C.F.R. § 225.25(b)(16)), though to
the extent a customer wishes to invest in certain types
of investments, such as commercial paper, the services might involve the purchase and sale of securities
that do not qualify as bank-eligible securities. Moreover, cash management services are provided by
banks generally. 6 On this basis, the Board finds the
proposed activity to be closely related to banking.
1. SIC has previously received authorization under the Act to:
(1) provide securities brokerage services under section
225.25(b)(15) of Regulation Y (12 C.F.R. § 225.25(b)(15));
(2) buy and sell, as agent on behalf of unaffiliated persons, options
on securities issued or guaranteed by the U.S. Government and
its agencies, and options on U.S. and foreign money market
instruments;
(3) purchase and sell gold and silver bullion and gold coins solely
for the account of customers;
(4) underwrite and deal in government obligations and money
market instruments under section 225.25(b)(16) of Regulation Y
(12 C.F.R. § 225.25(b)(16));
(5) provide investment advice relating solely to government
obligations and money market instruments; and
(6) provide certain fiduciary services, including securities safekeeping, custodial services, and acting as a paying agent and as a
dividend disbursement agent.
2. Banking data are as of September 30, 1986.
3. Applicant has previously been authorized to engage through
Sovran Capital Management, Richmond, Virginia ("SCM"), in
the provision of investment or financial advice on a fee basis.
4. Excess customers' funds would be invested in overnight repurchase agreements (with Sovran Bank, N.A. as principal, or with thirdparty borrowers through Sovran Bank, N.A. as agent), taxable and
tax-exempt commercial paper, short-term government or agency
securities, or other specified money market investments.
In order to approve this application, the Board must
also find that the performance of the proposed activity
"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."
Applicant's proposal represents a corporate reorganization wherein activities currently performed by one
of its subsidiary banks, Sovran Bank, N.A., will be
5. I n BankAmerica
Corporation,
6 9 F E D E R A L RESERVE B U L L E T I N
105 (1983), the Board found that a "money market sweep" service
offered by a retail discount securities brokerage to its customers in
connection with the brokerage's carrying the customers' accounts was
closely related to banking as well as an incidental activity in connection with the brokerage's securities brokerage and margin lending
activities. The "money market sweep" was a "sweep" arrangement,
pursuant to which idle customer balances exceeding a predetermined
minimum were automatically invested in an unaffiliated money market
mutual fund.
I n National
Westminster
Bank
PLC,
7 2 F E D E R A L RESERVE B U L L E -
TIN 584 (1986), the Board approved an application which included
cash management services incident to the provision of brokerage
services.
6. See National Courier Association v. Board of Governors, 516
F.2d 1229 (D.C. Cir. 1975).
Legal Developments
conducted by SIC. Because the proposal would result
in a transfer of the activities within the same corporate
structure, approval of the application would have no
adverse competitive effects. The Board finds that the
conduct by SIC of this activity will not result in
conflicts of interest, unsound banking practices, undue
concentration of resources, or other adverse effects.
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.
The transaction shall be made not later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Richmond, pursuant
to delegated authority.
By order of the Board of Governors, effective
January 20, 1987.
Voting for this action: Chairman Volcker and Governors
Johnson, Seger, Angell, and Heller.
JAMES M C A F E E
[SEAL]
Associate
Secretary of the Board
227
ly acquire its nine subsidiary banks. 1 Applicant also
has applied under section 4(c)(8) of the Act, 12 U.S.C.
§ 1843(c)(8), and section 225.23(a)(2) of the Board's
Regulation Y, 12 C.F.R. § 225.23(a)(2), to acquire
Company's four nonbank subsidiaries:
(i) Citizens Fidelity Capital Markets, Inc., Louisville, Kentucky, a company that engages in discount
brokerage activities as well as underwriting and
dealing in government obligations;
(ii) Citizens Fidelity Leasing Corporation, Louisville, Kentucky, a company that finances personal
property leases;
(iii) CFC Financial Services, Inc., Louisville, Kentucky, a company that engages in data processing
and transmission; and
(iv) Citizens Fidelity (Ohio) N.A., Cincinnati, Ohio,
a company that engages in credit card lending operations.
These activities have been determined by the Board to
be closely related to banking and permissible for bank
holding companies generally. 2
Notice of these applications, affording an opportunity for interested persons to submit comments, has
been given in accordance with sections 3 and 4 of the
Act, 12 U.S.C. §§ 1842 and 1843. 51 Federal Register
39,713, 46,934 (1986). 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),
and the considerations specified in section 4(c)(8) of
the Act, 12 U.S.C. § 1843(c)(8).
Applicant's proposal represents the first acquisition
by a Pennsylvania bank holding company of a Kentucky banking organization and Indiana banks.
The Board is prohibited by the Douglas Amendment
to the Act from approving any application by a bank
Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
PNC Financial Corp
Pittsburgh, Pennsylvania
Order Approving
Company
the Acquisition
of a Bank Holding
PNC Financial Corp, Pittsburgh, Pennsylvania, a bank
holding company within the meaning of the Bank
Holding Company Act ("Act"), 12 U.S.C. § 1841
et seq., has applied for the Board's approval under
section 3 of the Act, to acquire 100 percent of the
voting shares of Citizens Fidelity Corporation, Lexington, Kentucky ("Company"), and thereby indirect
1. The banks to be acquired are as follows: Citizens Fidelity Bank
and Trust Company, Louisville, Kentucky; Citizens Fidelity Bank
and Trust Company Winchester, Winchester, Kentucky; Citizens
Fidelity Bank and Trust Company Hardin County, Elizabethtown,
Kentucky; Citizens Fidelity Bank and Trust Company Lexington,
Lexington, Kentucky; Citizens Fidelity Bank and Trust Company of
Oldham County, LaGrange, Kentucky; Madison National Bank of
Richmond, Richmond, Kentucky; Mercer County National Bank of
Harrodsburg, Harrodsburg, Kentucky; Indiana Southern Bank, Sellersburg, Indiana; and First Midwest Bank and Trust Company, New
Albany, Indiana.
In connection with this application, Blue Grass Acquisition Corp,
Lexington, Kentucky, a wholly owned subsidiary of PNC, has applied
to become a bank holding company by merger with Company.
2. In the event the proposed transaction is not consummated.
Applicant plans to exercise its option to acquire Company's authorized but unissued treasury shares for $198 million and has applied for
the Board's approval for such acquisition.
228
Federal Reserve Bulletin • March 1987
holding company to acquire directly or indirectly a
bank located outside the bank holding company's
home state, 3 unless the state where the bank to be
acquired is located has specifically authorized the
acquisition "by language to that effect and not merely
by implication." Applicant's home state is Pennsylvania. The statute laws of Kentucky authorize the acquisition of a bank or bank holding company in that state
by a bank holding company located in another state
within a defined region, which includes Pennsylvania,
if the laws of that state permit the acquisition of a bank
in that state by a Kentucky bank holding company. 4
Pennsylvania has enacted a similar statute, which
permits the acquisition of a Pennsylvania bank by a
Kentucky bank holding company. 5 Accordingly, the
Board concludes that the Douglas Amendment does
not prohibit Board approval for Applicant's acquisition of Company's subsidiary banks in Kentucky.
Indiana law does not specifically include Pennsylvania within its interstate banking region. A state superior court in Indiana recently has ruled, however, that
Indiana law 6 specifically authorizes Applicant to acquire indirectly two Indiana banks owned by Company
in connection with Applicant's acquisition of Company, provided Applicant divests the Indiana banks, in
accordance with the Indiana statute, within two years
of consummating its proposal. 7 The Attorney General
of Indiana has advised the Board that, pursuant to the
wishes of the Indiana banking commissioner, he will
not appeal the superior court's ruling. Accordingly, on
the basis of this final ruling by an Indiana court that
Indiana law specifically authorizes Applicant's indirect acquisition of Company's two Indiana banks
subject to the two year divestiture requirement, the
Board concludes that approval of Applicant's proposal
to acquire Company, including Company's two Indiana banks, is not barred by the Douglas Amendment.
Applicant is the second largest commercial banking
organization in Pennsylvania, controlling total deposits of $12.8 billion, representing 12.6 percent of the
deposits in commercial banks in Pennsylvania. Company is the second largest commercial banking organization in Kentucky, controlling total deposits of $3.3
3. A bank holding company's home state for purposes of the
Douglas Amendment is that state in which the total deposits of its
banking subsidiaries were largest on July 1, 1966, or on the date it
became a bank holding company, whichever is later. 12 U.S.C.
§ 1842(d).
4. Ky. Rev. Stat. § 287.900 et seq. (1984).
5. 1986 Pa. Laws No. 69 (enacted June 25, 1986).
6. Ind. Code §§ 28-2-15-22(b) and 28-2-15-27 (1985).
7. Amended Order and Amended Findings of Fact and Conclusions
of Law, Superior Court of Floyd County (December 11, 1986),
overruling Official Opinion No. 86-7 (August 1986) of the Attorney
General of Indiana.
billion, or 11.4 percent of the deposits in commercial
banks in Kentucky. 8 Company also controls two
banks in Indiana, representing less than one percent of
deposits in commercial banks in that state. Company
does not control banks in Pennsylvania. The Board,
therefore, concludes that consummation of Applicant's proposal would not have any significant adverse
effect on the concentration of banking resources in
Kentucky, Indiana or Pennsylvania.
The Board has considered the effects of this transaction upon competition in all relevant banking markets.
Applicant's proposal involves the combination of two
sizeable commercial banking firms that are among the
larger banking organizations in their respective states.
Applicant does not, however, provide banking services in any market in which Company's subsidiary
banks compete. Accordingly, consummation of this
proposal would not eliminate significant existing competition in any relevant market.
The Board also has considered the effect of the
proposed acquisition on probable future competition
in Kentucky, Indiana and Pennsylvania. In view of the
numerous potential entrants into each of the markets
served by either Company or Applicant, the Board
concludes that consummation of the proposed transaction would not have any significant adverse effect on
probable future competition in any relevant market.
The financial and managerial resources of Applicant, its subsidiaries and the Banks are consistent with
approval. Considerations relating to the convenience
and needs of the community to be served are also
consistent with approval. Based on the foregoing and
other facts of record, the Board has determined that
the proposed acquisition and merger are in the public
interest and that the applications should be, and hereby are, approved.
Applicant also has applied under section 4(c)(8) of
the Act to acquire Company's credit card lending
operations in Ohio9 and its three nonbank subsidiaries
in Kentucky. Applicant and Company do not compete
in any of the same markets, except for certain leasing
activities. However, Applicant and Company do not
provide the same type of leasing services. Accordingly, approval of these applications will have no significant adverse effect on competition in any relevant
8. State deposit data are as of June 30, 1986. Market deposit data
are as of June 30, 1985.
9. The Board has conditioned approval of Applicant's acquisition
of Citizens Fidelity (Ohio), N . A . , Cincinnati, Ohio, which engages in
credit card activities, on the limitations imposed in Company's
acquisition of the bank. See, Citizens Fidelity Corporation, 69 FEDERAL RESERVE B U L L E T I N 5 5 6 ( 1 9 8 3 ) .
Legal Developments
market. Furthermore, there is no evidence in the
record to indicate that approval of Applicant's proposed nonbanking operations would result in undue
concentration of resources, decreased or unfair competition, conflicts of interest, unsound banking practices, or other adverse effects. Accordingly, the Board
finds that the balance of public interest factors it must
consider under section 4(c)(8) of the Act is favorable
and consistent with approval of the application to
acquire Company's nonbanking subsidiaries.
Based on the foregoing and other facts of record, the
Board has determined that these applications under
sections 3 and 4 of the Act should be and hereby are
approved. The acquisition of Company 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 the Order, unless
such period is extended for good cause by the Board or
the Federal Reserve Bank of Cleveland, pursuant to
ORDERS APPROVED
229
delegated authority. The determinations as to Applicant's nonbanking activities are subject to all of the
limitations in Regulation Y, including those in sections
225.4(d) and 225.23(b)(3), 12 C.F.R. §§ 225.4(d) and
225.23(b)(3), and to the Board's authority to require
such modification or termination of the activities of a
bank holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with, or
prevent evasion of, the provisions and purposes of the
Act and the Board's regulations and orders issued
thereunder.
By order of the Board of Governors, effective
January 28, 1987.
Voting for this action: Chairman Volcker and Governors
Johnson, Seger, Angell, and Heller.
JAMES MCAFEE
[SEAL]
Associate
Secretary
of the Board
UNDER BANK HOLDING COMPANY ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as 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
ICNB Financial Corporation,
Ionia, Michigan
Bank(s)
Ionia County National Bank of Ionia,
Ionia, Michigan
Effective
January 7, 1987
Section 4
,.
„
A
Applicant
James Madison Limited,
Washington, D.C.
Nonbanking
^
Company
Lease Masters Inc.,
Rockville, Maryland
Effective
date
December 29, 1986
230
Federal Reserve Bulletin • March 1987
By Federal Reserve
Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
Section 3
Applicant
ALT A VISTA BANCSHARES,
INC.,
Alta Vista, Iowa
American National Corporation,
Chicago, Illinois
Atlanta National Corporation,
Atlanta, New York
Banc One Corporation,
Columbus, Ohio
Banc Services Corp.,
Orrville, Ohio
Bank Shares Incorporated,
Minneapolis, Minnesota
BankEast Corporation,
Manchester, New Hampshire
Bankers' Financial Services
Corporation,
Schuylkill Haven,
Pennsylvania
Belfast Holding Company,
Belfast, Tennessee
BMR Bancorp, Inc.,
Atlanta, Georgia
Canton Bancshares, Inc.,
Canton, Illinois
Cardinal Bancorp, Inc.,
Everett, Pennsylvania
Citizens Bancshares of
Marysville, Inc.,
Marysville, Kansas
Citizens Financial Corp.,
Elkins, West Virginia
CNB, Inc.,
Lake City, Florida
Codorus Valley Bancorp., Inc.,
Glen Rock, Pennsylvania
Bank(s)
Reserve
Bank
Effective
date
Alta Vista State Bank,
Alta Vista, Iowa
Chicago
January 23, 1987
NOR-EVAN CORPORATION,
Evanston, Illinois
First Schiller Bancorp, Inc.,
Schiller Park, Illinois
Merchants Corporation,
Melrose Park, Illinois
Atlanta National Bank,
Atlanta, New York
Northwest National Bank,
Rensselaer, Indiana
The Orrville Savings Bank,
Orrville, Ohio
First State Bank of Apple Valley,
Apple Valley, Minnesota
BankEast Savings Bank and
Trust,
Rochester, New Hampshire
The Schuylkill Haven Trust
Company,
Schuylkill Haven, Pennsylvania
Chicago
January 27, 1987
New York
December 30, 1986
Cleveland
December 26, 1986
Cleveland
January 5, 1987
Minneapolis
December 22, 1986
Boston
January 9, 1987
Philadelphia
January 14, 1987
Bank of Belfast,
Belfast, Tennessee
Toombs Bank Shares, Inc.,
Vidalia, Georgia
Canton State Bank,
Canton, Illinois
The First National Bank of
Everett,
Everett, Pennsylvania
The Citizens State Bank,
Marysville, Kansas
Atlanta
January 5, 1987
Atlanta
December 24, 1986
Chicago
December 18, 1986
Philadelphia
January 22, 1987
Kansas City
December 31, 1986
Citizens National Bank of Elkins,
Elkins, West Virginia
Community National Bank,
Lake City, Florida
Peoples Bank of Glen Rock,
Glen Rock, Pennsylvania
Richmond
January 9, 1987
Atlanta
January 28, 1987
Philadelphia
December 31, 1986
Legal Developments
231
Section 3—Continued
Applicant
Community Bancshares, Inc.,
Blountsville, Alabama
Community Bancshares, Inc.,
Chillicothe, Missouri
Cooper Lake Financial
Corporation,
Cooper, Texas
Cornerstone Bancshares, Inc.,
Dallas, Texas
Dinsdale Brothers, Inc.,
Palmer, Nebraska
Dominion Bankshares
Corporation,
Roanoke, Virginia
Fairfield Financial Corporation,
Fairfield, Texas
Financial Institutions, Inc.,
Warsaw, New York
First Apple River Corporation,
Apple River, Illinois
First Bancorp, Inc.,
Minneapolis, Minnesota
First Chicago Corporation,
Chicago, Illinois
First Merchants Bancorp, Inc.,
Montgomery, West Virginia
First National Bancorp, Inc.,
Norfolk, N e w York
w .
Bank(s)
Reserve
fiank
Effective
datg
Morgan County Bank,
Falkville, Alabama
Madison County Bank,
New Hope, Alabama
Bosworth State Bank,
Bosworth, Missouri
Community Bank,
Chillicothe, Missouri
State Bank of Maryville,
Maryville, Missouri
Community Bank of Savannah,
Savannah, Missouri
Community Bank of
Warrensburg,
Warrensburg, Missouri
First National Bank in Cooper,
Cooper, Texas
Atlanta
January 28, 1987
Kansas City
December 26, 1986
Dallas
January 27, 1987
Cornerstone Bank, N.A.,
Dallas, Texas
The Mitch Corporation,
Mitchell, Nebraska
First National Bank in Mitchell,
Mitchell, Nebraska
First Dickson Corporation,
Dickson, Tennessee
Dallas
January 15, 1987
Kansas City
December 18, 1986
Richmond
January 2, 1987
Dallas
December 31, 1986
New York
January 16, 1987
Chicago
January 15, 1987
Minneapolis
January 14, 1987
Chicago,
January 27, 1987
Richmond
January 7, 1987
New York
December 30, 1986
First Fairfield Bankshares, Inc.,
Fairfield, Texas
The Pavilion State Bank,
Pavilion, New York
Apple River State Bank,
Apple River, Illinois
The First Western Bank Sturgis,
Sturgis, South Dakota
NOR-EVAN CORPORATION,
Evanston, Illinois
First Schiller Bancorp, Inc.,
Schiller Park, Illinois,
Merchants Corporation,
Melrose Park, Illinois
The Merchants National Bank of
Montgomery,
Montgomery, West Virginia
The Gauley National Bank,
Gauley Bridge, West Virginia
The First National Bank of
Norfolk,
Norfolk, New York
232
Federal Reserve Bulletin • March 1987
Section 3—Continued
.
Applicant
First National Bankshares
Corporation,
Ronceverte, West Virginia
First Peoples Financial
Corporation,
Westmont (Haddon
Township), New Jersey
FNB Corp,
Mount Clemens, Michigan
Frandsen Financial Corporation,
Rush City, Minnesota
Goliad Banc shares, Inc.,
Goliad, Texas
Hasten Bancorp,
Indianapolis, Indiana
Hawaii National Bancshares,
Inc.,
Honolulu, Hawaii
Highlands Bankshares, Inc.,
Petersburg, West Virginia
Jack's Fork Bancorporation,
Inc.,
Mountain View, Missouri
J.R. Montgomery
Bancorporation,
Lawton, Oklahoma
Luzerne National Bank
Corporation,
Luzerne, Pennsylvania
Madison Corporation,
Little Rock, Arkansas
MBI Bancshares, Inc.,
Kansas City, Missouri
„ w .
Bank(s)
Reserve
Effective
BanR
date
The First National Bank in
Ronceverte,
Ronceverte, West Virginia
First Peoples Bank of New
Jersey,
Westmont (Haddon Township),
New Jersey
First National Bank in Mount
Clemens,
Mount Clemens, Michigan
Farmers and Merchants State
Bank of Hinckley,
Hinckley, Minnesota
The First National Bank of
Goliad,
Goliad, Texas
H & H Financial Corporation,
Kokomo, Indiana
First National Financial Corp of
Martinsville,
Martinsville, Indiana
First Bank and Trust Company of
Clay County, Indiana,
Brazil, Indiana
Sullivan State Bank,
Sullivan, Indiana
Peoples State Bank,
Farmersburg, Indiana
Farmers Banc, Inc.,
Tipton, Indiana
Hawaii National Bank,
Honolulu, Hawaii
Richmond
December 31, 1986
Philadelphia
January 12, 1987
Chicago
December 30, 1986
Minneapolis
December 30, 1986
Dallas
January 6, 1987
Chicago
January 13, 1987
San Francisco
January 14, 1987
The Capon Valley Bank,
Wardensville, West Virginia
Texas County Bank,
Houston, Missouri
Richmond
January 9, 1987
St. Louis
December 24, 1986
Fort Sill National Bank,
Fort Sill, Oklahoma
Kansas City
January 9, 1987
The Luzerne National Bank,
Luzerne, Pennsylvania
Philadelphia
January 23, 1987
Madison Bank and Trust,
Kingston, Arkansas
The Bank of Kansas City,
Kansas City, Missouri
Westport Bank,
Kansas City, Missouri
St. Louis
January 7, 1987
Kansas City
December 24, 1986
Legal Developments
233
Section 3—Continued
Applicant
Merchants Holding Company,
Rugby, North Dakota
Metropolitan Bank Group, Inc.,
Bloomington, Minnesota
Minnesota Valley Bancshares,
Inc.,
Minneapolis, Minnesota
Montgomery County
Bankshares, Inc.,
Ailey, Georgia
Montgomery County
Bancshares, Inc.,
Little Rock, Arkansas
Morristown Holding Company,
Minneapolis, Minnesota
N B D Bancorp, Inc.,
Detroit, Michigan
N B D Valley Corporation,
Detroit, Michigan
Old National Bancorp,
Evansville, Indiana
Park National Corporation,
Newark, Ohio
Parkin Bancorp, Inc.,
Parkin, Arkansas
Pikeville National Corporation,
Pikeville, Kentucky
River Region Bancshares, Inc.,
Fordsville, Kentucky
SouthTrust Corporation,
Birmingham, Alabama
SouthTrust Corporation of
Covington Co., Inc.,
Opp, Alabama
Southwest Bancshares, Inc.,
Hermitage, Missouri
Turbotville National Bancorp,
Inc.,
Turbotville, Pennsylvania
Bank(s)
Reserve
Bank
Effective
date
Minneapolis
December 18, 1986
Minneapolis
December 24, 1986
Minneapolis
December 23, 1986
Atlanta
January 12, 1987
First National Bank in Mena,
Mena, Arkansas
St. Louis
January 22, 1987
State Bank of Morristown,
Morristown, Minnesota
USAmeribancs, Inc.,
Highland Park, Illinois
Minneapolis
January 8, 1987
Chicago
January 27, 1987
Gibson County Bank,
Princeton, Indiana
The Park National Bank,
Newark, Ohio
First State Bank,
Parkin, Arkansas
First Security Bank and Trust
Co.,
Whitesburg, Kentucky
Bank of Fords ville,
Fordsville, Kentucky
St. Louis
December 30, 1986
Cleveland
January 14, 1987
St. Louis
January 9, 1987
Cleveland
January 21, 1987
St. Louis
December 18, 1986
SBT Bancshares, Inc.,
Arab, Alabama
Atlanta
December 22, 1986
Buffalo Bank,
Buffalo, Missouri
First National Bank,
Republic, Missouri
Citizens State Bank of Polk
County,
Bolivar, Missouri
Humansville Bank,
Humansville, Missouri
The Turbotville National Bank,
Turbotville, Pennsylvania
Kansas City
November 28, 1986
Philadelphia
December 26, 1986
Merchants Bank,
Rugby, North Dakota
Metropolitan Bank Plymouth,
Plymouth, Minnesota
Minnesota Valley Bank,
Redwood Falls, Minnesota
Tracy State Bank,
Tracy, Minnesota
Murray County State Bank,
Slayton, Minnesota
Montgomery County Bank,
Ailey, Georgia
234
Federal Reserve Bulletin • March 1987
Section 3—Continued
Applicant
Turner Bancshares, Inc.,
Kansas City, Kansas
U. B. Bancshares, Inc.,
Bucyrus, Ohio
U N B Corp.,
Mount Carmel, Pennsylvania
Union County Bancshares, Inc.
Anna, Illinois
United Bank Corporation of
New York,
Downsville, New York
Valley National Banc Holding
Company,
Apple Valley, Minnesota
Verde Valley Bancorp, Inc.,
Cottonwood, Arizona
Vernois Bancshares, Inc.,
Mt. Vernon, Illinois
Bank(s)
Kaw Valley Bancshares, Inc.,
Kansas City, Kansas
United Bank, N.A.,
Bucyrus, Ohio
The Union National Bank of
Mount Carmel,
Mount Carmel, Pennsylvania
The Anna National Bank,
Anna, Illinois
The First National Bank of
Amenia,
Amenia, New York
Valley National Bank,
Apple Valley, Minnesota
The Bank of Verde Valley (In
Organization),
Cottonwood, Arizona
Vernois Bancorp, Inc.,
Mt. Vernon, Illinois
Reserve
Bank
Effective
date
Kansas City
January 22, 1987
Cleveland
January 20, 1987
Philadelphia
December 26, 1986
St. Louis
January 5, 1987
New York
January 21, 1987
Minneapolis
January 21, 1987
San Francisco
January 5, 1987
St. Louis
January 23, 1987
Section 4
Applicant
Banc One Corporation,
Columbus, Ohio
Bankers Trust New York
Corporation,
New York, New York
Barclays PLC,
London, England
Barclays Bank PLC,
London, England
Barclays PLC,
London, England
Barclays Bank PLC,
London, England
Barclays USA Inc.,
Wilmington, Delaware
Barclays U.S. Holdings, Inc.,
New York, N e w York
Barclay s-AmericanCorporation,
Charlotte, North Carolina
Nonbanking
Company/Activity
American Fletcher Mortgage
Company, Inc.,
Indianapolis, Indiana
American Fletcher Financial
Services, Inc.,
Marion, Indiana
the corporate trust and stock
transfer business of Wells
Fargo Bank, N.A.,
San Francisco, California
Wall Street Clearing Company,
New York, New York
acquisition and servicing of
consumer finance receivables
and credit card receivables
Reserve
Bank
Effective
date
Cleveland
January 22, 1987
New York
December 23, 1986
New York
December 22, 1986
New York
December 19, 1986
Legal Developments
235
Section 4
Applicant
Citizens Financial Group, Inc.,
New Haven, Missouri
Farmers and Merchants
Bancorp, Inc.,
Dover, Tennessee
Fidelcor, Inc.,
Philadelphia, Pennsylvania
First Hawaiian, Inc.,
Honolulu, Hawaii
Harris Bankcorp, Inc.,
Chicago, Illinois
Bankmont Financial Corp.,
New York, New York
Bank of Montreal,
Montreal, Canada
Hartford National Corporation,
Hartford, Connecticut
Michigan National Corporation,
Farmington Hills, Michigan
Orange County Banking
Corporation,
Ocoee, Florida
Security Pacific Corporation,
Los Angeles, California
South Carolina National
Corporation,
Columbia, South Carolina
Sovran Financial Corporation,
Norfolk, Virginia
Sovran Financial Corporation,
Norfolk, Virginia
Texas Commerce Bancshares,
Inc.,
Houston, Texas
U.S. Trust Corporation,
New York, New York
Nonbanking
Company/Activity
Reserve
Bank
Effective
date
Gerding Insurance Agency, Inc.,
New Haven, Missouri
Peoples' Insurance Agency, Inc.,
Dover, Tennessee
St. Louis
January 26, 1987
Atlanta
January 20, 1987
Wye Mortgage Corporation,
Lutherville, Maryland
Crocker Financial Corporation,
Ltd.,
Honolulu, Hawaii
Harris Brokerage Services, Inc.,
Chicago, Illinois
Philadelphia
December 29, 1986
San Francisco
December 24, 1986
Chicago
January 9, 1987
Lighthouse Mortgage Company,
Providence, Rhode Island
Morison International, Inc.,
Minneapolis, Minnesota
Retirement Accounts, Inc.,
Winter Park, Florida
Boston
December 24, 1986
Chicago
December 30, 1986
Atlanta
December 19, 1986
insurance premium finance assets
of Goldome Premium
Financing, Inc.,
Bohemia, New York
Confidential Credit Corporation,
Anderson, South Carolina
San Francisco
January 9, 1987
Richmond
December 23, 1986
Sovran Leasing Corporation,
Richmond, Virginia
Sovran Mortgage Corporation,
Richmond, Virginia
providing investment or financial
advice
Richmond
December 30, 1986
Richmond
December 30, 1986
Dallas
December 31, 1986
New York
December 22, 1986
Summit Management Company,
Inc.,
Los Angeles, California
Sections 3 and 4
Applicant
The Bank of N e w York,
New York, New York
Bank(s)/Nonbanking
Company
North American Bancorp, Inc.,
Garden City, New York
NABAC Investment Services
Corp.,
Garden City, New York
Reserve
Bank
New York
Effective
date
January 16, 1987
236
Federal Reserve Bulletin • March 1987
Sections 3 and 4
Bank(s)/Nonbanking
Company
Applicant
Cheshire Financial Corporation,
Keene, New Hampshire
The First National Agency at
St. James, Inc.,
St. James, Minnesota
Maxwell Corporation,
Northfork, West Virginia
Cheshire County Savings Bank,
Keene, New Hampshire
Colonial Mortgage, Inc.,
Amherst, New Hampshire
The First National Bank at St.
James,
St. James, Minnesota
operating a general insurance
agency
Ameribank Charleston,
Charleston, West Virginia
management consulting to banks
ORDERS APPROVED UNDER BANK MERGER
By Federal Reserve
Effective
date
Boston
December 17, 1986
Minneapolis
January 26, 1987
Richmond
December 17, 1986
Reserve
Bank
Effective
date
ACT
Banks
Applicant
The Bank of Kansas City,
Kansas City, Missouri
The Bank of New York
Company, Inc.,
New York, New York
Hardy County Bank, Inc.,
Wardensville, West Virginia
Madison County Bank,
New Hope, Alabama
The Merchants Bank,
Kansas City, Missouri
Security Bank,
Marshalltown, Iowa
Reserve
Bank
Bank(s)
The Merchants Bank,
Kansas City, Missouri
Long Island Trust Company,
N.A.,
Garden City, New York
The Capon Valley Bank,
Wardensville, West Virginia
acquire the assets and assume the
liabilities of branches of Central
Bank of the South,
New Hope and Gurley,
Alabama
Westport Bank,
Kansas City, Missouri
Hawkeye Bank and Trust,
Eldora, Iowa
Kansas City
December 24, 1986
New York
January 16, 1987
Richmond
January 9, 1987
Atlanta
January 28, 1987
Kansas City
December 24, 1986
Chicago
January 9, 1987
Legal Developments
PENDING CASES INVOLVING
237
THE BOARD OF GOVERNORS
This list of pending cases does not include suits against the Federal Reserve Banks in which the Board of
Governors is not named a party.
Independent Insurance Agents of America, et al. v.
Board of Governors, Nos. 86-1572, 1573, 1576
(D.C. Cir., filed Oct. 24, 1986).
Securities Industry Association v. Board of Governors, No. 86-2768 (D.D.C., filed Oct. 7, 1986).
Independent
Community
Bankers Association
of
South Dakota v. Board of Governors, No. 86-5373
(8th Cir., filed Oct. 3, 1986).
Jenkins v. Board of Governors, No. 86-1419 (D.C.
Cir., filed July 18, 1986).
Securities Industry Association v. Board of Governors, No. 86-1412 (D.C. Cir., filed July 14, 1986).
Adkins v. Board of Governors, No. 86-3853 (4th Cir.,
filed May 14, 1986).
Optical Coating Laboratory, Inc. v. United States,
No. 288-86C (U.S. Claims Ct., filed May 6, 1986).
CBC, Inc. v. Board of Governors, No. 86-1001 (10th
Cir., filed Jan. 2, 1986).
Howe v. United States, et al., No. 86-889 (U.S. S.Ct.
filed Dec. 6, 1985).
Myers, et al. v. Federal Reserve Board, No. 85-1427
(D. Idaho, filed Nov. 18, 1985).
Souser, et al. v. Volcker, et al., No. 85-C-2370, et al.
(D. Colo., filed Nov. 1, 1985).
Podolak v. Volcker, No. C85-0456, et al. (D. Wyo.,
filed Oct. 28, 1985).
Kolb v. Wilkinson, et al., No. C85-4184 (N.D. Iowa,
filed Oct. 22, 1985).
Farmer v. Wilkinson, et al., No. 4-85-CIVIL-1448 (D.
Minn., filed Oct. 21, 1985).
Kurkowski v. Wilkinson, et al., No. CV-85-0-916 (D.
Neb., filed Oct. 16, 1985).
Jensen v. Wilkinson, et al., No. 85-4436-S, et al. (D.
Kan., filed Oct. 10, 1985).
Alfson v. Wilkinson, et al., No. A l - 8 5 - 2 6 7 (D. N.D.,
filed Oct. 8, 1985).
First National Bancshares II v. Board of Governors,
No. 85-3702 (6th Cir., filed Sept. 4, 1985).
McHuin v. Volcker, et al., No. 85-2170 WARB (W.D.
Okl., filed Aug. 29, 1985).
Independent Community Bankers Associaton of South
Dakota v. Board of Governors, No. 84-1496 (D.C.
Cir., filed Aug. 7, 1985).
Urwyler, et al. v. Internal Revenue Service, et al., No.
85-2877 (9th Cir., filed July 18, 1985).
Wight, et al. v. Internal Revenue Service, et al., No.
85-2826 (9th Cir., filed July 12, 1985).
Cook v. Spillman, et al., No. 86-1642 (9th Cir., filed
July 10, 1985).
Florida Bankers Association v. Board of Governors,
No. 84-3883 and No. 84-3884 (11th Cir., filed
Feb. 15, 1985).
Florida Department of Banking v. Board of Governors, No. 84-3831 (11th Cir., filed Feb. 15, 1985),
and No. 84-3832 (11th Cir., filed Feb. 15, 1985).
Lewis v. Volcker, et al., No. 86-3210 (6th Cir., filed
Jan. 14, 1985).
Brown v. United States Congress, et al., No. 84-28876(IG) (S.D. Cal., filed Dec. 7, 1984).
Melcher v. Federal Open Market Committee, No. 841335 (D.D.C., filed Apr. 30, 1984).
Florida Bankers Association, et al. v. Board of Governors, Nos. 84-3269, 84-3270 (11th Cir., filed April
20, 1984).
Securities Industry Association v. Board of Governors, No. 86-5089, et al. (D.C. Cir., filed Oct. 24.,
1980)
A1
Financial and Business Statistics
CONTENTS
Domestic
WEEKLY REPORTING COMMERCIAL
Financial
Statistics
MONEY STOCK AND BANK CREDIT
Reserves, money stock, liquid assets, and debt
measures
A4 Reserves of depository institutions, Reserve
Bank credit
A5 Reserves and borrowings—Depository
institutions
A5 Selected borrowings in immediately available
funds—Large member banks
A19
A20
A21
A22
BANKS
Assets and liabilities
All reporting banks
Banks in New York City
Branches and agencies of foreign banks
Gross demand deposits—individuals,
partnerships, and corporations
A3
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
BANKS
A10 Condition and Federal Reserve note statements
A l l Maturity distribution of loan and security
holdings
MONETARY AND CREDIT AGGREGATES
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
A15 Bank debits and deposit turnover
A16 Loans and securities—All commercial banks
COMMERCIAL BANKING
INSTITUTIONS
A17 Major nondeposit funds
A18 Assets and liabilities, last-Wednesday-of-month
series
FINANCIAL
MARKETS
A23 Commercial paper and bankers dollar
acceptances outstanding
A23 Prime rate charged by banks on short-term
business loans
A24 Interest rates—money and capital markets
A25 Stock market—Selected statistics
A26 Selected financial institutions—Selected assets
and liabilities
FEDERAL
FINANCE
A28
A29
A30
A30
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
A31 U.S. government securities dealers—
Transactions
A32 U.S. government securities dealers—Positions
and financing
A33 Federal and federally sponsored credit
agencies—Debt outstanding
SECURITIES MARKETS AND
CORPORATE FINANCE
A34 New security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales and
asset position
A35 Corporate profits and their distribution
A63 Federal Reserve Bulletin • March 1987
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
A54 Foreign official assets held at Federal Reserve
Banks
A55 Foreign branches of U.S. banks—Balance sheet
data
A57 Selected U.S. liabilities to foreign official
institutions
REAL
REPORTED BY BANKS IN THE UNITED STATES
ESTATE
A38 Mortgage markets
A39 Mortgage debt outstanding
CONSUMER INSTALLMENT
CREDIT
A40 Total outstanding and net change
A41 Terms
FLOW OF FUNDS
A57
A58
A60
A61
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A61 Banks' own claims on unaffiliated foreigners
A62 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED BY NONBANKING
BUSINESS
ENTERPRISES IN THE UNITED STATES
A42 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets
A63 Liabilities to unaffiliated foreigners
A64 Claims on unaffiliated foreigners
Domestic
Nonfinancial
SECURITIES HOLDINGS AND
SELECTED
MEASURES
Statistics
A44 Nonfinancial business activity—Selected
measures
A45 Labor force, employment, and unemployment
A46 Output, capacity, and capacity utilization
A47 Industrial production—Indexes and gross value
A49 Housing and construction
A50 Consumer and producer prices
A51 Gross national product and income
A52 Personal income and saving
International
SUMMARY
Statistics
STATISTICS
A53 U.S. international transactions—Summary
A54 U.S. foreign trade
A54 U.S. reserve assets
TRANSACTIONS
A65 Foreign transactions in securities
A66 Marketable U.S. Treasury bonds and notes—
Foreign transactions
INTEREST AND EXCHANGE
RATES
A67 Discount rates of foreign central banks
A67 Foreign short-term interest rates
A68 Foreign exchange rates
A69 Guide to Tabular
Statistical Releases,
Tables
SPECIAL
Presentation,
and
Special
TABLES
A70 Assets and liabilities of foreign banks,
September 30, 1986
Money Stock and Bank Credit
1.10
A3
RESERVES, MONEY STOCK, LIQUID ASSETS, A N D DEBT MEASURES
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent) 1
Item
1986
Q1
Reserves of depository
1 Total
2 Required
3 Nonborrowed
4 Monetary base 3
Q3
Q4
Aug.
Sept.
Oct.
Nov.'
Dec.
institutions2
Concepts of money, liquid assets, and debt4
5 Ml
6 M2
7 M3
8 L
9 Debt
Nontransaction
10 In M25
11 In M3 only 6
Q2
1986
13.1
12.3
19.1
8.6
17.8
19.8
17.6
8.8
22.9
23.9
23.2
9.9
21.5
19.9
22.4
10.2
19.7
24.2
16.8
12.0
11.5
12.0
8.4
5.4
13.7
13.4
17.9
9.4
32.6
27.7
35.2
12.8
40.5
32.3
39.3
14.6
7.7
4.3
7.6
8.4
15.5r
15.8
10.5
9.0
7.0
10.3'
17.3
11.1
10.2
8.5
12.0
17.2
9.2
7.6
n.a.
11.5
20.6
11.2
9.1
8.3
12.7r
9.8'
7.3
8.8
8.4r
11.9^
13.8r
10.7'
6.6 r
6.8'
9.3'
21.0
7.0
5.9
8.8
12.1
28.4
10.0
9.3
n.a.
n.a.
3.3
20.6
8.7
3.4
9.1
6.3
6.4
1.2
8.0
.9
6.4
14.9'
9.6
-9.6'
2.3
1.2
3.5
6.4
1.9
5.3
18.5
11.8
-3.1
-8.8
25.5
-9.0
-1.1'
38.5
-12.1
.0
30.6
-12.6
7.7
36.0
-10.9
-2.6
40.9'
-15.8
-10.2
38.7
-12.4
9.0
33.5
-3.6
10.2
3.1
6.6
10.0
20.9
2.6
11.0
23.6
-3.8
2.7
23.7
-7.7
-8.9
18.2
-6.0
2.2
16.1
-6.0
-2.2
27.1'
-11.3
-13.0
27.7
-7.5
-16.1
22.0
-3.2
-7.4
17.0
15.0
12.7
11.6
9.8
4.1
14.5
11.2'
10.5
12.6
11.2
9.1
8.8
13.9'
13.8
9.9
9.1'
2.2
16.1
10.9
8.9
n.a.
n.a.
17.6
components
Time and savings deposits
Commercial banks
Savings7
Small-denomination time 8
Large-denomination time 9 ' 10
Thrift institutions
15 Savings 7
16 Small-denomination time
17 Large-denomination time 9
12
13
14
Debt components4
18 Federal
19 Nonfederal
20 Total loans and securities at commercial banks 11
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.
2. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
3. The monetary base not adjusted for discontinuities consists of total
reserves plus required clearing balances and adjustments to compensate for float
at Federal Reserve Banks plus the currency component of the money stock less
the amount of vault cash holdings of thrift institutions that is included in the
currency component of the money stock plus, for institutions not having required
reserve balances, the excess of current vault cash over the amount applied to
satisfy current reserve requirements. After the introduction of contemporaneous
reserve requirements (CRR), currency and vault cash figures are measured over
the weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock plus the remaining items seasonally
adjusted as a whole.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits
at all commercial banks other than those due to domestic banks, the U.S.
government, and foreign banks and official institutions less cash items in the
process of collection and Federal Reserve float; and (4) other checkable deposits
(OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer
service (ATS) accounts at depository institutions, credit union share draft
accounts, and demand deposits at thrift institutions. The currency and demand
deposit components exclude the estimated amount of vault cash and demand
deposits respectively held by thrift institutions to service their OCD liabilities.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, Money Market Deposit Accounts
(MMDAs), savings and small-denomination time deposits (time deposits—including retail RPs—in amounts of less than $100,000), and balances in both taxable and
tax-exempt general purpose and broker/dealer money market mutual funds.
Excludes individual retirement accounts (IRA) and Keogh balances at depository
institutions and money market funds. Also excludes all balances held by U.S.
11.4
12.(K
13.0
commercial banks, money market funds (general purpose and broker/dealer),
foreign governments and commercial banks, and the U.S. government. Also
subtracted is a consolidation adjustment that represents the estimated amount of
demand deposits and vault cash held by thrift institutions to service their time and
savings deposits.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted is
a consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are based on monthly averages. Growth rates for debt reflect adjustments for
discontinuities over time in the levels of debt presented in other tables.
5. Sum of overnight RPs and Eurodollars, money market fund balances
(general purpose and broker/dealer), MMDAs, and savings and small time
deposits less the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposit liabilities.
6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents,
money market fund balances (institution-only), less a consolidation adjustment
that represents the estimated amount of overnight RPs and Eurodollars held by
institution-only money market mutual funds.
7. Excludes MMDAs.
8. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All IRA and Keogh accounts at commercial
banks and thrifts are subtracted from small time deposits.
9. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
10. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
11. Changes calculated from figures shown in table 1.23.
A4
1.11
DomesticNonfinancialStatistics • March 1987
RESERVES OF DEPOSITORY INSTITUTIONS A N D RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1986
1986
Factors
Oct.
Nov.
Dec.
Nov. 19
Nov. 26
214,197
219,190
188,195
187,944
251
8,030
7,975
55
0
779
560
16,633
11,084
5,018
17,465
193,043
192,284
759
7,968
7,867
101
0
802
974
16,403
11,084
5,018
17,516
226,527
220,660
218,971
221,438
223,539
224,476
227,065
232,826
199,939
197,057
2,882
8,129
7,829
300
0
829
1,302
16,328
11,084
5,018
17,541
193,626
192,005
1,621
7,961
7,829
132
0
1,103
1,416
16,555
11,084
5,018
17,517
194,251
193,459
792
7,928
7,829
99
0
639
587
15,566
11,084
5,018
17,531
195,514
193,783
1,731
8,184
7,829
355
0
581
1,290
15,869
11,084
5,018
17,518
198,635
198,033
602
7,870
7,829
41
0
383
908
15,742
11,084
5,018
17,528
198,668
197,512
1,156
7,956
7,829
127
0
644
1,094
16,113
11,084
5,018
17,538
200,640
197,069
3,571
8,064
7,829
235
0
554
1,413
16,395
11,084
5,018
17,548
203,718
197,175
6,543
8,604
7,829
775
0
1,818
1,764
16,922
11,084
5,018
17,558
202,301
492
205,069
474
209,228
453
205,566
475
205,493
468
207,136
459
207,899
455
208,350
453
209,759
453
211,636
450
3,305
215
3,117
233
3,658
232
3,696
204
2,474
224
2,606
255
2,794
205
3,524
266
3,391
211
5,340
237
1,971
516
2,064
522
2,230
477
1,980
510
2,044
428
2,379
544
2,195
425
2,421
539
2,273
390
2,219
458
Dec. 3
Dec. 10
Dec. 17
Dec. 24
Dec. 31
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit
2 U.S. government securities'
3
Bought outright
4
Held under repurchase agreements....
5 Federal agency obligations
Bought outright
6
7
Held under repurchase agreements
8 Acceptances
9 Loans
10 Float
11 Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account....
14 Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and
adjustments
20 Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks2
6,302
6,345
6,404
6,322
6,275
6,428
6,337
6,406
6,411
6,425
32,663
34,984
37,488
35,527
35,198
35,252
36,860
36,158
37,828
39,723
End-of-month figures
Wednesday figures
1986
1986
Nov. 19
Nov. 26
241,760
226,011
219,141
222,438
224,602
230,336
228,775
241,760
211,316
197,625
13,691
10,143
7,829
2,314
0
1,565
1,261
17,475
196,369
191,850
4,519
8,087
7,829
258
0
3,980
1.841
15,734
193.261
191,627
1.634
8,215
7,829
386
0
481
1,391
15,793
195,302
192,721
2,581
8,337
7,829
508
0
769
2,110
15,920
197,871
197,871
0
7,829
7,829
0
0
402
2,421
16,079
200,631
197,418
3,213
8,234
7,829
405
0
1,965
2,974
16,532
200,491
196,742
3,749
8,127
7,829
298
0
468
2,619
17,070
211,316
197,625
13,691
10,143
7,829
2,314
0
1,565
1,261
17,475
11,084
5,018
17,543
11,084
5,018
17,567
11,084
5,018
17,529
11,084
5,018
17,543
11,084
5,018
17,527
11,084
5,018
17,537
11,084
5,018
17,547
11,084
5,018
17,557
11,084
5,018
17,567
202,517
485
206,904
459
211,995
447
205,415
469
206,786
459
207,757
460
208,190
453
208,754
453
211,051
450
211,995
447
2,491
303
2,529
225
7,588
287
2,850
174
2,591
337
2,313
250
3,875
247
4,536
345
3,681
177
7,588
287
1,744
479
1,744
425
1,812
917
1,727
486
1,802
430
1,802
437
1,804
466
1,805
471
1,812
375
1,812
917
Oct.
Nov.
Dec.
215,993
221,673
189,995
189,995
0
7,954
7,954
0
0
806
441
16,797
196,293
194,876
1,417
8,177
7,829
348
0
557
748
15,898
11,084
5,018
17,488
Dec. 3
Dec. 10
Dec. 17
Dec. 24
Dec. 31
SUPPLYING RESERVE FUNDS
23 Reserve Bank credit
24
25
26
27
28
29
30
31
32
33
U.S. government securities1
Bought outright
Held under repurchase agreements....
Federal agency obligations
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 reserve balances with
Federal Reserve Banks
39 Treasury
40 Foreign
41 Service-related balances and
adjustments
42 Other
43 Other Federal Reserve liabilities and
capital
44 Reserve balances with Federal
Reserve Banks2
6,342
6,480
6,088
6,223
6,094
6,311
6,263
6,257
6,415
6,088
35,222
36,552
46,295
42,298
34,287
36,737
36,944
41,364
38,473
46,295
1. Includes securities loaned—fully guaranteed by U.S government securities
pledged with Federal Reserve Banks—and excludes any securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Excludes required clearing balances and adjustments to compensate for
float.
NOTE. For amounts of currency and coin held as reserves, see table 1.12.
Money Stock and Bank Credit
1.12
RESERVES A N D BORROWINGS
A5
Depository Institutions
Millions of dollars
Monthly averages 8
Reserve classification
1984
1985
Dec.
1 Reserve balances with Reserve Banks'
2 Total vault cash 2
3 Vault cash used to satisfy reserve requirements 3 .
4 Surplus vault cash 4
Total reserves 5
6 Required reserves
7 Excess reserve balances at Reserve Banks 6
8 Total borrowings at Reserve Banks
9 Seasonal borrowings at Reserve Banks
10 Extended credit at Reserve Banks7
1983
1986
Dec.
Dec.
May
June
July
Aug.
Sept.
Oct.
Nov.
21,138
20,755
17,908
2,847
38,894
38,333
561
774
96
2
21,738
22,316
18,958
3,358
40,696
39,843
853
3,186
113
2,604
27,620
22,956
20,522
2,434
48,142
47,085
1,058
1,318
56
499
28,279
22,474
20,140
2,334
48,419
47,581
838
876
94
584
29,499
22,805
20,439
2,366
49,938
49,007
931
803
108
531
30,313
23,098
20,716
2,381
51,029
50,118
910
741
116
378
30,165
23,451
21,112
2,339
51,277
50,538
740
872
144
465
31,922
23,384
21,267
2,117
53,189
52,463
726
1,008
137
570
32,947
23,753
21,676
2,078
54,623
53,877
746
841
99
497
34,803
23,543
21,595
1,947
56,399
55,421
978
752
70
418
Biweekly averages of daily figures for weeks ending
1986 and 1987
Sept. 24
11
12
13
14
15
16
17
18
19
20
Reserve balances with Reserve Banks1
Total vault cash 2
Vault cash used to satisfy reserve requirements3 .
Surplus vault cash 4
Total reserves 5
Required reserves
Excess reserve balances at Reserve Banks 6
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks7
Oct. 8
Oct. 22
Nov. 5
Nov. 19
Dec. 3'
Dec. 17
Dec. 31
Jan. 14p
Jan. 28p
32,103
23,623
21,567
2,056
53,670
52,964
706
981
135
569
32,156
24,015
21,790
2,225
53,946
50,287
660
902
125
538
33,007
23,955
21,914
2,041
54,921
54,170
751
771
88
488
33,557
23,208
21,204
2,004
54,761
53,947
814
899
93
476
34,945
23,405
21,570
1,835
56,515
55,599
916
811
68
437
35,189
23,871
21,806
2,065
56,995
55,865
1,130
610
63
368
36,527r
23,485
21,725
1,733
58,251'
57,51 l r
740'
514
34
310
38,659
24,729
22,758
1,971
61,417
59,369
2,048
1,186
37
282
38,764
24,583
22,805
1,778
61,569
60,663
906
505
28
215
35,258
25,028
22,958
2,071
58,215
57,045
1,170
689
36
227
1. Excludes required clearing balances and adjustments to compensate for
float.
2. Dates refer to the maintenance periods in which the vault cash can be used to
satisfy reserve requirements. Under contemporaneous reserve requirements,
maintenance periods end 30 days after the lagged computation periods in which
the balances are held.
3. Equal to all vault cash held during the lagged computation period by
institutions having required reserve balances at Federal Reserve Banks plus the
amount of vault cash equal to required reserves during the maintenance period at
institutions having no required reserve balances.
4. Total vault cash at institutions having no required reserve balances less the
amount of vault cash equal to their required reserves during the maintenance
period.
5. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash used to satisfy reserve
requirements. Such vault cash consists of all vault cash held during the lagged
1.13
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required reserves.
7. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
8. Before February 1984, data are prorated monthly averages of weekly
averages; beginning February 1984, data are prorated monthly averages of
biweekly averages.
NOTE. These data also appear in the Board's H.3 (502) release. For address, see
inside front cover.
SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS
Large Member Banks 1
Averages of daily figures, in millions of dollars
1986 and 1987 week ending Monday
By maturity and source
Nov. 24
1
2
3
4
Federal funds purchased, repurchase agreements, and other
selected borrowing in immediately available funds
From commercial banks in the United States
For one day or under continuing contract
For all other maturities
From other depository institutions, foreign banks and
foreign official institutions, and United States
government agencies
For one day or under continuing contract
For all other maturities
Dec. 1
Dec. 8
Dec. 15
Dec. 22
Dec. 29
Jan. 5
Jan. 12
Jan. 19
75,422'
8,448
80,295'
9,088
84,561'
7,728
81,894'
7,420'
80,932
7,790
78,638
9,148
91,166
8,297
84,217
7,925
81,808
8,815
38,728'
4,941
35,176'
5,702
39,397'
5,236
38,06c
5,199
34,382
6,126
31,199
7,026
33,292
5,940
37,498
6,636
35,356
7,288
Repurchase agreements on United States government
and federal agency securities in immediately
available funds
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities
11,181
10.396
9,276
11,236
11,220
9.039
10,047'
9,600'
9,798
9,099
10,016
7,562
12,500
5,911
12,987
7,682
11,724
9,695
29,541
10,711
28,018
14,211
29,046
10,426
29,200'
10,367'
29.384
11,233
26,786
14,980
29,064
11,575
30,806
10,257
29,128
10,098
MEMO: Federal funds loans and resale agreements in
immediately available funds in maturities of one day
or under continuing contract
9 To commercial banks in the United States
10 To all other specified customers 2
27,235
10,070
30,473
10,631
26,230
9,916
26,368'
10,078'
28,024
9,076
30,563
10,205
33,044
10,480
33,777
10,424
30,722
10,271
5
6
7
8
1. Banks with assets of $1 billion
or more as of Dec. 31, 1977.
2. Brokers and nonbank dealers in securities; other depository institutions;
foreign banks and official institutions; and United States government agencies.
A6
1.14
DomesticNonfinancialStatistics • March 1987
FEDERAL RESERVE BANK INTEREST RATES
Percent per annum
Current and previous levels
Extended credit 2
Short-term adjustment credit
and seasonal credit 1
Federal Reserve
Bank
First 60 days
of borrowing
Rate on
1/30/87
Effective
date
Previous
rate
5Vi
8/21/86
8/21/86
8/22/86
8/21/86
8/21/86
8/21/86
6
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City . . . .
Dallas
San F r a n c i s c o . . .
5l/i
8/21/86
8/22/86
8/21/86
8/21/86
8/21/86
8/21/86
6
Rate on
1/30/87
Next 90 days
of borrowing
Previous
rate
Rate on
1/30/87
Previous
rate
Rate on
1/30/87
6
6 Vi
7
In effect Dec. 31, 1973
1974— Apr. 25
30
Dec. 9
16
1975— Jan.
6
10
24
5
7
Mar. 10
14
May 16
23
Feb.
1976— Jan.
19
23
Nov. 22
26
1977— Aug. 30
31
Sept. 2
Oct. 26
1978— Jan.
9
20
May 11
12
July
July
3
10
Range (or
level)—
All F.R.
Banks
71/2
7^-8
8
3
7 /»-8
73/4
7'/4-7 3 /4
7 1 /4-7 3 /4
71/4
6V4-7V4
6 3 /4
6'/4-6 3 /4
6'/4
6-6!/4
6
F.R.
Bank
of
N.Y.
m
8
8
7 J /4
73/4
73/4
71/4
71/4
6V4
6'/4
6'/4
6'/4
6
SVi
m
6
5!/2
51/2
51/!
51/4
51/4
5\/4-53/4
5'/4-5 3 /4
53/4
6
6-6'/2
6Vi
6^-7
7
7-71/4
7'/4
Effective da
1978-— Aug. 71
Sept. 77
Oct. 16
70 .
Nov. 1 .
1979-- J u l y 70
Aug. 17
70
Sept. 19 ,
71
Oct. 8
10 .
51/4
53/4
53/4
6
6>/2
6 Vi
7
7
71/4
1980-- F e b . 15
19
May 79
30
June 13
16
July 78
79
Sept. 76
Nov. 17
Dec. 5
8
—
1981-— May
Nov.
71/4
Dec.
5
8 .
7 .
6 .
4
1. After May 19, 1986, the highest rate within the structure of discount rates
may be charged on adjustment credit loans of unusual size that result from a major
operating problem at the borrower's facility.
A temporary simplified seasonal program was established on Mar. 8, 1985, and
the interest rate was a fixed rate Vi percent above the rate on adjustment credit.
The program was re-established on Feb. 18, 1986 and again on Jan. 28, 1987; the
rate may be either the same as that for adjustment credit or a fixed rate l /i percent
higher.
2. 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. As an alternative, for loans outstanding for
more than 150 days, a Federal Reserve Bank may charge a flexible rate that takes
into account rates on market sources of funds, but in no case will the rate charged
be less than the basic rate plus one percentage point. Where credit provided to a
particular depository institution is anticipated to be outstanding for an unusually
prolonged period and in relatively large amounts, the time period in which each
8
8 - 8 Vz
m
m-9Vi
9l/2
8/21/86
8/21/86
8/22/86
8/21/86
8/21/86
8/21/86
8/21/86
8/22/86
8/21/86
8/21/86
8/21/86
8/21/86
7'/2
3
Range (or
level)—
All F.R.
Banks
73/4
7
Previous
rate
F.R.
Bank
of
N.Y.
73/4
8
m
m
9l/2
9>/2
10
10-10!/i
lOVi
101/2-1 1
11
11-12
12
10
12-13
13
12-13
12
11-12
11
10-11
10
11
12
12-13
13
13
13
13
12
11
11
10
10
11
12
13
13
13-14
14
13-14
13
12
14
14
13
13
12
10'/2
10V2
11
11
12
12
Effective date
1982— July 20
23
Aug. 2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
11V^—12
11 Vi
im
11
11
10V4
10
10
UVi
11-11 Vi
11
10Vi
10-101/2
10
9^-10
9 >/2
9 - 9 Vi
9
81/2-9
8'/2-9
m
91/2
91/2
9
9
9
m
8Vi
6
51/2-6
514-5 Vi
51/4
Effective date
for current rates
IVI
51/2
Range of rates in recent years
Effective date
After 150 days
1984— Apr.
9
13
Nov. 21
26
Dec. 24
8'/>-9
9
8Vi—9
8Vi
8
9
9
1985— May 20
24
7Vi-8
IVi
m
IVi
1986— Mar.
i~m
1
7
10
Apr. 21
23
July 11
Aug. 21
22
In effect Jan 30, 1987
6V4-7
6V2
6
5 i/2-6
Sl/2
8'/i
8
7
7
6'/>
6Vi
6
5Vi
SVi
5>/2
5Vi
5Vi
rate under this structure is applied may be shortened. See section 201.3(b)(2) of
Regulation A.
3. 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.
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'
Percent of deposits
Type of deposit, and
deposit interval
Member bank requirements
before implementation of the
Monetary Control Act
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
7
9l/l
11%
12%
16V4
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
3
Net transaction accounts1
$0-$36.7 million
Effective date
3
12
12/30/86
12/30/86
3
0
10/6/83
10/6/83
11/13/80
3/16/67
Nonpersonal time deposits9
By original maturity
Less than 1 Vi years
1 '/2 years or more
Eurocurrency liabilities
3
2Vi
1
3/16/67
1/8/76
10/30/75
6
2Vi
1
12/12/74
1/8/76
10/30/75
1. For changes in reserve requirements beginning 1963, see Board's Annual
Statistical Digest, 1971-1975, and for prior changes, see Board's Annual Report
for 1976, table 13. Under provisions of the Monetary Control Act, depository
institutions include commercial banks, mutual savings banks, savings and loan
associations, credit unions, agencies and branches 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 iarge
time deposits, Eurodollar borrowings, repurchase agreements against U.S.
government and federal agency securities, federal funds borrowings from nonmember institutions, and certain other obligations. In general, the base for the
marginal reserve requirement was originally the greater of (a) $100 million or (b)
the average amount of the managed liabilities held by a member bank, Edge
corporation, or family of U.S. branches and agencies of a foreign bank for the two
reserve computation periods ending Sept. 26, 1979. For the computation period
beginning Mar. 20, 1980, the base was lowered by (a) 7 percent or (b) the decrease
in an institution's U.S. office gross loans to foreigners and gross balances due
from foreign offices of other institutions between the base period (Sept. 13-26,
1979) and the week ending Mar. 12, 1980, whichever was greater. For the
computation period beginning May 29, 1980, the base was increased by l x h
percent above the base used to calculate the marginal reserve in the statement
week of May 14-21, 1980. In addition, beginning Mar. 19, 1980, the base was
reduced to the extent that foreign loans and balances declined.
Percent
Effective date
Net demand2
Time and savings2-3
Savings
Depository institution requirements
after implementation of the
Monetary Control Act 6
3
Percent
$10 million-$100 million
$100 million-$400 million
Over $400 million
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. 1, 1985, the amount of the exemption was established at $2.4
million. Effective with the reserve computation period beginning Dec. 31, 1985,
the amount of the exemption was established at $2.6 million. Effective Dec. 30,
1986, the amount of the exemption is $2.9 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)
described in 12 CFR section 204.2 (d)(2); (2) net NOW accounts (NOW accounts
less allowable deductions); (3) net other transaction accounts; and (4) nonpersonal
time deposits or Eurocurrency liabilities starting with those with the highest
reserve ratio. With respect to NOW accounts and other transaction accounts, the
exemption applies only to such accounts that would be subject to a 3 percent
reserve requirement.
6. For nonmember banks and thrift institutions that were not members of the
Federal Reserve System on or after July 1, 1979, a phase-in period ends Sept. 3,
1987. For banks that were members on or after July 1, 1979, but withdrew on or
before Mar. 31, 1980, the phase-in period established by Public Law 97-320 ends
on Oct. 24, 1985. For existing member banks the phase-in period of about three
years was completed on Feb. 2, 1984. All new institutions will have a two-year
phase-in beginning with the date that they open for business, except for those
institutions that have total reservable liabilities of $50 million or more.
7. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers (in excess
of three per month) for the purpose of making payments to third persons or others.
However, MMDAs and similar accounts offered by institutions not subject to the
rules 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;
effective Dec. 30, 1982, to $26.3 million; effective Dec. 29, 1983, to $28.9 million;
effective Jan. 1, 1985, to $29.8 million; and effective Dec. 31, 1985, to $31.7
million. Effective Dec. 30, 1986, the amount was increased to $36.7 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 1987
1.16
MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions 1
Percent per annum
Commercial banks
In effect Jan. 31, 1987
Type of deposit
Savings and loan associations and
mutual savings banks (thrift institutions) 1
In effect Jan. 31, 1987
Percent
1 Savings
2 Negotiable order of withdrawal accounts
3 Money market deposit account
(2)
(3)
(4)
Time accounts
4 7-31 days
(5)
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.
2. Effective Apr. 1, 1986, the interest rate ceiling on savings deposits was
removed. Before Apr. 1, 1986, savings deposits were subject to an interest rate
ceiling of 5Vi percent.
3. Before Jan. 1, 1986, NOW accounts with minimum denomination requirements of less than $1,000 were subject to an interest rate ceiling of 5lA percent.
NOW accounts with minimum required denominations of $1,000 or more and
IRA/Keough (HR10) Plan accounts were not subject to interest rate ceilings.
Effective Jan. 1, 1986, the minimum denomination requirement was removed.
Effective date
4/1/86
1/1/86
12/14/82
1/1/86
10/1/83
Percent
<2)
(3)
(4)
(5)
Effective date
4/1/86
1/1/86
12/14/82
9/1/86
10/1/83
4. 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. Effective Jan. 1, 1985,
the minimum denomination and average balance maintenance requirements was
lowered to $1,000. Effective Jan. 1, 1986, the minimum denomination and average
balance maintenance requirements were removed. No minimum maturity period
is required for this account, but depository institutions must reserve the right to
require seven days, notice before withdrawals.
5. Before Jan. 1, 1986, deposits of less than $1,000 were subject to an interest
rate ceiling of 5'/i percent. Deposits of less than $1,000 issued to governmental
units were subject to an interest rate ceiling of 8 percent. Effective Jan. 1, 1986,
the minimum denomination requirement was removed.
Policy Instruments
1.17
A9
FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1986
Type of transaction
1983
1984
1985
May
July
June
Aug.
Sept.
Oct.
Nov.
U . S . GOVERNMENT SECURITIES
Outright transactions (excluding matched
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
18,888
3,420
0
2,400
20,036
8,557
0
7,700
22,214
4,118
0
3,500
3,1%
0
0
0
1,402
0
0
0
867
0
0
0
2,940
0
0
0
861
0
0
0
928
0
0
0
3,318
0
0
0
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
484
0
18,887
-16,553
87
1,126
0
16,354
-20,840
0
1,349
0
19,763
-17,717
0
0
0
1,847
-1,819
0
0
0
1,152
-1,957
0
0
0
579
-1,253
0
0
0
1,715
-4,087
0
0
0
1,053
-1,892
0
0
0
974
-529
0
190
0
2,974
-1,810
0
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,896
0
-15,533
11,641
1,638
0
-13,709
16,039
2,185
0
-17,459
13,853
0
0
-1,532
1,019
0
0
-1,152
1,957
0
0
-386
1,253
0
0
-1,194
2,587
0
0
-1,053
1,892
0
0
-969
529
893
0
-2,414
1,510
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
890
0
-2,450
2,950
536
300
-2,371
2,750
458
100
-1,857
2,184
0
0
-315
500
0
0
0
0
0
0
-193
0
0
0
-520
1,000
0
0
0
0
0
0
-5
0
236
0
-560
200
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
383
0
-904
1,962
441
0
-275
2,052
293
0
-447
1,679
0
0
0
300
0
0
0
0
0
0
0
0
0
0
0
500
0
0
0
0
0
0
0
0
158
0
0
100
22
23
24
All maturities
Gross purchases
Gross sales
Redemptions
22,540
3,420
2,487
23,776
8,857
7,700
26,499
4,218
3,500
3,196
0
0
1,402
0
0
867
0
0
2,940
0
0
861
0
0
928
0
0
4,795
0
0
25
26
Matched transactions
Gross sales
Gross purchases
578,591
576,908
808,986
810,432
866,175
865,968
62,663
67,147
80,219
80,674
70,928
69,659
60,460
60,011
73,179
70,817
77,262
81,892
60,146
60,232
27
28
Repurchase agreements
Gross purchases
Gross sales
105,971
108,291
127,933
127,690
134,253
132,351
12,395
19,917
5,640
5,640
18,657
18,657
0
0
14,717
8,403
5,670
11,984
16,888
15,471
12,631
8,908
20,477
158
1,857
-403
2,491
4,814
-756
6,298
0
0
292
0
0
256
0
0
162
0
0
50
0
0
0
0
0
0
0
90
0
0
*
*
0
0
93
0
0
125
8,833
9,213
11,509
11,328
22,183
20,877
3,135
4,567
1,691
1,691
4,984
4,984
0
0
2,678
869
952
2,761
1,622
1,274
-672
-76
1,144
-1,482
0
*
-90
1,809
-1,902
223
36 Repurchase agreements, net
-1,062
-418
0
0
0
0
0
0
0
0
37 Total net change in System Open Market
Account
10,897
8,414
21,621
-1,324
1,857
-403
2,401
6,623
-2,658
6,522
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
30
31
32
Outright transactions
Gross purchases
Gross sales
Redemptions
33
34
Repurchase agreements
Gross purchases
Gross sales
35 Net change in federal agency obligations
BANKERS ACCEPTANCES
NOTE. Sales, redemptions, and negative figures reduce holdings of the System
Open Market Account; all other figures increase such holdings. Details may not
add to totals because of rounding.
A10
1.18
DomesticNonfinancialStatistics • March 1987
FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements
Millions of dollars
Wednesday
1986
Account
Dec. 10
Dec. 3
End of month
1986
Dec. 31
Dec. 24
Dec. 17
Nov.
Oct.
Dec.
Consolidated condition statement
ASSETS
11,084
5,018
493
11,084
5,018
502
11,084
5,018
510
11,084
5,018
505
11,084
5,018
485
11,084
5,018
508
11,084
5,018
507
11,084
5,018
485
769
0
402
0
1,965
0
468
0
1,565
0
806
0
557
0
1,565
0
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4 To depository institutions
5 Other
Acceptances—Bought outright
6 Held under repurchase agreements
Federal agency obligations
7 Bought outright
8
Held under repurchase agreements
U.S. government securities
Bought outright
9
Bills
10
Notes
11
Bonds
12
Total bought outright1
13 Held under repurchase agreements
14 Total U.S. government securities
0
0
0
0
0
0
0
0
7,829
508
7,829
0
7,829
405
7,829
298
7,829
2,314
7,954
0
7,829
348
7,829
2,314
98,871
68,126
25,724
192,721
2,581
195,302
104,021
68,126
25,724
197,871
0
197,871
103,568
68,126
25,724
197,418
3,213
200,631
102,892
68,126
25,724
196,742
3,749
200,491
103,775
68,126
25,724
197,625
13,691
211,316
97,622
66,597
25,776
189,995
0
189,995
101,026
68,126
25,724
194,876
1,417
196,293
103,775
68,126
25,724
197,625
13,691
211,316
15 Total loans and securities
204,408
206,102
210,830
209,086
223,024
198,755
205,027
223,024
8,938
661
8,896
653
8,378
656
10,627
656
10,418
659
8,938
661
6,104
649
4,721
654
9,140
6,127
9,207
6,216
9,218
6,658
9,241
7,170
9,475
7,339
9,133
7,015
9,179
6,065
9,475
7,339
245,819
247,163
254,601
253,181
266,024
238,266
242,255
266,024
191,183
191,607
192,170
194,449
195,360
186,022
190,327
195,360
38,539
2,313
250
437
38,748
3,875
247
466
43,169
4,536
345
471
40,285
3,681
177
375
48,107
7,588
287
917
36,966
2,491
303
479
38,296
2,529
225
425
48,107
7,588
287
917
41,539
43,336
48,521
44,518
56,899
40,239
41,475
56,899
6,786
2,203
5,957
2,230
7,653
2,231
7,799
2,379
7,677
2,340
5,663
2,275
3,973
2,242
7,677
2,340
241,711
243,130
250,575
249,145
262,276
234,199
238,017
262,276
1,861
1,781
466
1,859
1,781
393
1,863
1,781
382
1,866
1,781
389
1,874
1,874
0
1,854
1,781
432
1,860
1,781
597
1,874
1,874
0
33 Total liabilities and capital accounts
245,819
247,163
254,601
253,181
266,024
238,266
242,255
266,024
34 MEMO: Marketable U.S. government securities held in
custody for foreign and international account
165,896
165,465
164,764
162,582
162,381
164,020
164,411
162,381
16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies 2
19 All other 3
20 Total assets
LIABILITIES
21 Federal Reserve notes
Deposits
22 To depository institutions
23 U.S. Treasury—General account
24 Foreign Official accounts
25 Other
26 Total deposits
27 Deferred credit items
28 Other liabilities and accrued dividends4
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding
36
LESS: Held by bank
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
231,765
40,582
191,183
232,953
41,346
191,607
232,883
40,713
192,170
232,166
37,717
194,449
231,603
36,243
195,360
227,605
41,583
186,022
231,281
40,954
190,327
231,603
36,243
195,360
11,084
5,018
0
175,081
11,084
5,018
0
175,505
11,084
5,018
0
176,068
11,084
5,018
0
178,347
11,084
5,018
0
179,258
11,084
5,018
0
169,920
11,084
5,018
0
174,225
11,084
5,018
0
179,258
42 Total collateral
191,183
191,607
192,170
194,449
195,360
186,022
190,327
195,360
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.
NOTE: Some of these data also appear in the Board's H.4.1 (503) release. For
address, see inside front cover.
Federal Reserve Banks
1.19
FEDERAL RESERVE BANKS
All
Maturity Distribution of Loan and Security Holdings
Millions of dollars
Wednesday
1986
Type and maturity groupings
End of month
1986
Dec. 3
Dec. 10
Dec. 17
Dec. 24
Dec. 31
Oct. 31
Nov. 28
Dec. 31
1 Loans—Total
2. Within 15 days
3 16 days to 90 days
4 91 days to 1 year
769
759
10
0
402
390
12
0
1,965
1,960
5
0
468
463
5
0
1,565
1,553
12
0
806
783
23
0
557
545
12
0
1,565
1,553
12
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
0
0
0
0
0
0
0
0
0
0
0
0
9 U.S. government securities—Total
10 Within 15 days 1
11 16 days to 90 days
12 91 days to 1 year
n
Over 1 year to 5 years
14 Over 5 years to 10 years
15 Over 10 years
195,302
10,050
50,749
59,179
36,807
15,451
23,066
197,871
4,716
55,787
62,044
36,807
15,451
23,066
200,631
9,717
53,421
62,169
36,807
15,451
23,066
200,491
12,529
52,638
60,000
36,807
15,451
23,066
211,316
20,480
53,611
62,239
36,469
15,451
23,066
189,995
6,964
48,533
59,855
36,259
15,575
22,809
196,293
7,625
54,077
59,068
37,006
15,451
23,066
211,316
20,480
53,611
62,239
36,469
15,451
23,066
16 Federal agency obligations—Total
17 Within 15 days1
18 16 days to 90 days
19 91 days to 1 year
20 Over 1 year to 5 years
21 Over 5 years to 10 years
22 Over 10 years
8,337
595
1,074
1,401
3,712
1,181
374
7,829
0
1,152
1,323
3,792
1,188
374
8,234
470
1,087
1,334
3,781
1,188
374
8,127
613
837
1,334
3,781
1,188
374
10,143
2,704
809
1,224
3,854
1,178
374
7,954
279
940
1,360
3,808
1,193
374
8,177
653
851
1,376
3,730
1,193
374
10,143
2,704
809
1,224
3,854
1,178
374
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 1987
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS A N D MONETARY BASE
Billions of dollars, averages of daily figures
-
item
1983
Dec.
1984
Dec.
1985
Dec.
1986
1986
Dec.
May
1 Total reserves2
Nonborrowed reserves
Nonborrowed reserves plus extended credit3
Required reserves
Monetary base 4
July
Aug.
Sept.
Oct.
Nov.
52.40
53.82
55.64
51.56 53.07
52.06 53.49
51.66 52.85
233.44 235.92
54.81
55.11
54.27
238.78
Dec.
Seasonally adjustec
ADJUSTED FOR
2
3
4
5
June
36.14
39.51
45.61
55.64
48.58
49.45
50.49
51.32
51.81
35.36
35.37
35.58
185.39
36.32
38.93
38.66
199.17
44.29
44.79
44.55
216.72
54.81
55.11
54.27
238.78
47.70
48.29
47.74
224.90
48.64
49.17
48.51
226.63
49.75
50.13
49.58
228.30
50.45
50.91
50.58
230.59
50.80
51.37
51.08
231.63
Not seasonally adjusted
6 Total reserves2
7
8
9
10
Nonborrowed reserves
Nonborrowed reserves plus extended credit3
Required reserves
Monetary base 4
36.86
40.57
46.84
57.16
47.71
49.20
50.32
50.62
51.55
36.09
36.09
36.30
188.66
37.38
39.98
39.71
202.34
45.52
46.02
45.78
220.36
56.34
56.64
55.80
243.04
46.84
47.42
46.87
223.61
48.40
48.93
48.27
227.04
49.58
49.96
49.41
230.02
49.75
50.21
49.88
230.76
50.54
51.11
50.82
231.51
38.89
40.70
48.14
59.56
48.42
49.94
51.03
51.28
53.19
54.62
56.40
59.56
38.12
38.12
38.33
192.26
37.51
40.09
39.84
204.18
46.82
58.73
59.04
47.41
47.08r 58.19
223.53 247.71
47.54
48.24
47.58
226.12
49.14
49.81
49.01
229.68
50.29
50.68
50.12
232.55
50.41
50.90
50.54
233.32
52.18
52.76
52.46
235.07
53.78
54.15
53.88
237.26
55.65
56.15
55.42
241.27
58.73
59.04
58.19
247.71
52.34
54.11
57.17
51.50 53.36
52.00 53.77
51.60 53.13
233.04 236.91
56.34
56.64
55.80
243.04
N O T ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 5
11 Total reserves2
12
13
14
15
Nonborrowed reserves
Nonborrowed reserves plus extended credit3
Required reserves
Monetary base 4
1. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
2. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash used to satisfy reserve
requirements. Such vault cash consists of all vault cash held during the lagged
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
3. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
4. The monetary base not adjusted for discontinuities consists of total reserves
plus required clearing balances and adjustments to compensate for float at Federal
Reserve Banks and the currency component of the money stock less the amount
of vault cash holdings of thrift institutions that is included in the currency
component of the money stock plus, for institutions not having required reserve
balances, the excess of current vault cash over the amount applied to satisfy
current reserve requirements. After the introduction of contemporaneous reserve
requirements (CRR), currency and vault cash figures are measured over the
weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock and the remaining items seasonally
adjusted as a whole.
5. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated
with implementation of the Monetary Control Act or other regulatory changes to
reserve requirements.
NOTE. Latest monthly and biweekly figures are available from the Board's
H.3(502) statistical release. Historical data and estimates of the impact on
required reserves of changes in reserve requirements are available from the
Banking Section, Division of Research and Statistics, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
Monetary and Credit Aggregates
1.21
A13
MONEY STOCK, LIQUID ASSETS, A N D DEBT MEASURES
Billions of dollars, averages of daily figures
1986
Item1
1983
Dec.
1984
Dec.
1985
Dec.
1986
Dec.
Sept.
Oct.
Nov.
Dec.
Seasonally adjusted
527.1
2,186.0
2,697.3
3,162.7
5,210.1
1
7
4
5
558.5
2,373.8
2,986.5
3,532.4
5,949.8'
626.6
2,566.5
3,201.2
3,839.5
6,778.6'
730.4
2,804.5
3,488.1
n.a.
n.a.
693.2
2,740.8
3,425.6
4,059.4
7,387.2
701.2
2,765.2
3,444.5
4,082.3
7,444.4
713.5
2,781.4
3,461.4
4,112.2
7,519.3
730.4
2804.5
3,488.1
n.a.
n.a.
148.3
4.9
242.7
131.3
158.5
5.2
248.4
146.3
170.6
5.9
271.5
178.6
183.5
6.4
307.9
232.7
179.7
6.5
292.2
214.8
181.2
6.4
293.2
220.4
182.2
6.4
298.4
226.4
183.5
6.4
307.9
232.7
1,658.9
511.3
1,815.4
612.7
1,939.9
634.6
2,074.0
683.6
2,047.6
684.8
2,064.0
679.3
2,067.9
680.0
2,074.0
683.6
6
7
8
9
Ml components
Currency 2
Travelers checks 3
Demand deposits 4
Other checkable deposits5
10
11
Nontransactions components
In M26
In M3 only7
17
13
Savings deposits9
Commercial Banks
Thrift institutions
133.4
173.2
122.3
167.3
124.4'
179.1
154.6
216.8
140.9
203.5
145.7
208.1
150.4
212.9
154.6
216.8
14
15
Small denomination time deposits 9
Commercial Banks
Thrift institutions
351.1
434.1
387.2
500.3
384.1
496.2
362.8
489.6
372.6
498.7
367.7
494.0
363.9
490.9
362.8
489.6
16
17
Money market mutual funds
General purpose and broker/dealer
Institution-only
138.2
43.2
167.5
62.7
176.5
64.6
207.2
84.1
202.2
84.4
206.9
84.5
207.0
84.4
207.2
84.1
18
19
Large denomination time deposits 10
Commercial Banks11
Thrift institutions
228.7
101.1
263.7
150.2
279.2
157.3
283.4
160.8
281.4
165.8
278.9
164.0
281.0
161.8
283.4
160.8
70
21
Debt components
Federal debt
Non-federal debt
1,172.8
4,037.3
1,367.6
4,582.2r
1,587.0
5,191.6^
n.a.
n.a.
1,741.6
5,645.7
1,755.9
5,688.5
1,779.4
5,739.9
n.a.
n.a.
Not seasonally adjusted
538.8
2,192.8
2,707.9
3,169.3
5,204.5
T>
73
74
75
26
570.5
2,380.8
2,997.8
3,537.6
5,944.(K
639.9
2,574.7
3,213.9
3,845.7
6,772.0'
746.0
2,814.7
3,503.3
n.a.
n.a.
690.7
2,731.5
3,418.3
4,054.3
7,365.4
698.4
2,759.2
3,440.4
4,078.1
7,426.8
715.0
2,779.3
3,465.0
4,115.2
7,503.5
746.0
2,814.7
3,503.3
n.a.
n.a.
150.5
4.6
251.3
132.4
160.9
4.9
257.3
147.5
173.1
5.5
281.3
180.1
186.1
6.0
318.9
235.0
179.5
6.9
290.8
213.5
180.9
6.5
292.5
218.5
183.2
6.1
299.6
226.0
186.1
6.0
318.9
235.0
1,654.0
515.1
1,810.3
617.0
1,934.7
639.2
2,068.7
688.6
2,040.7
686.9
2,060.8
681.2
2,064.3
685.7
2,068.7
688.6
77
78
79
30
Ml components
Currency2
Travelers checks3
Demand deposits4
Other checkable deposits5
31
32
Nontransactions components
M26
M3 only7
33
34
Money market deposit accounts
Commercial banks
Thrift institutions
230.5
148.7
267.2
149.7
332.4
179.6
378.1
192.5
368.1
190.2
371.7
192.1
375.1
193.0
378.1
192.5
35
36
Savings deposits8
Commercial Banks
Thrift institutions
132.2
172.3
121.4
166.5
123.5
178.3
153.5
215.8
140.7
202.5
146.0
208.7
149.9
213.0
153.5
215.8
37
38
Small denomination time deposits 9
Commercial Banks
Thrift institutions
351.1
434.2
387.6
501.2
384.8
497.6
363.6
491.3
375.1
498.4
370.4
496.9
365.9
493.8
363.6
491.3
39
40
Money market mutual funds
General purpose and broker/dealer
Institution-only
138.2
43.2
167.5
62.7
176.5
64.6
207.2
84.1
202.2
84.4
206.9
84.5
207.0
84.4
207.2
84.1
41
42
Large denomination time deposits 10
Commercial Banks11
Thrift institutions
230.8
101.4
265.4
150.6
280.9
157.8
285.2
161.2
283.5
165.7
281.6
164.4
282.8
162.5
285.2
161.2
43
44
Debt components
Federal debt
Non-federal debt
1,170.2
4,034.3
1,364.7
4,579.2'
1,583.7
5,188.3'
n.a.
n.a.
1.734.5
5,630.9
1,748.6
5,678.2
1,771.8
5,731.7
For notes see following page.
n.a.
n.a.
A14
DomesticNonfinancialStatistics • March 1987
NOTES TO TABLE 1.21
1. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits
at all commercial banks other than those due to domestic banks, the U.S.
government, and foreign banks and official institutions less cash items in the
process of collection and Federal Reserve float; and (4) other checkable deposits
(OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer
service (ATS) accounts at depository institutions, credit union share draft
accounts, and demand deposits at thrift institutions. The currency and demand
deposit components exclude the estimated amount of vault cash and demand
deposits respectively held by thrift institutions to service their OCD liabilities.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, MMDAs, savings and smalldenomination time deposits (time deposits—including retail RPs—in amounts of
less than $100,000), and balances in both taxable and tax-exempt general purpose
and broker/dealer money market mutual funds. Excludes individual retirement
accounts (IRA) and Keogh balances at depository institutions and money market
funds. Also excludes all balances held by U.S. commercial banks, money market
funds (general purpose and broker/dealer), foreign governments and commercial
banks, and the U.S. government. Also subtracted is a consolidation adjustment
that represents the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposits.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted is
a consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are based on monthly averages.
2. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
commercial banks. Excludes the estimated amount of vault cash held by thrift
institutions to service their OCD liabilities.
3. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
4. Demand deposits at commercial banks and foreign-related institutions other
than those due to domestic banks, the U.S. government, and foreign banks and
official institutions less cash items in the process of collection and Federal
Reserve float. Excludes the estimated amount of demand deposits held at
commercial banks by thrift institutions to service their OCD liabilities.
5. Consists of NOW and ATS balances at all depository institutions, credit
union share draft balances, and demand deposits at thrift institutions. Other
checkable deposits seasonally adjusted equals the difference between the seasonally adjusted sum of demand deposits plus OCD and seasonally adjusted demand
deposits. Included are all ceiling free "Super NOWs," authorized by the
Depository Institutions Deregulation committee to be offered beginning Jan. 5,
1983.
6. Sum of overnight RPs and overnight Eurodollars, money market fund
balances (general purpose and broker/dealer), MMDAs, and savings and small
time deposits, less the consolidation adjustment that represents the estimated
amount of demand deposits and vault cash held by thrift institutions to service
their time and savings deposits liabilities.
7. Sum of large time deposits, term RPs and term Eurodollars of U.S.
residents, money market fund balances (institution-only), less a consolidation
adjustment that represents the estimated amount of overnight RPs and Eurodollars held by institution-only money market funds.
8. Savings deposits exclude MMDAs.
9. Small-denomination time deposits—including retail RPs— are those issued
in amounts of less than $100,000. All individual retirement accounts (IRA) and
Keogh accounts at commercial banks and thrifts are subtracted from small time
deposits.
10. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
11. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
NOTE: Latest monthly and weekly figures are available from the Board's H.6
(508) release. Historical data are available from the Banking Section, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Monetary and Credit Aggregates
1.22
A15
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.
1986
June
1
2
3
4
5
6
7
8
9
10
Demand deposits 2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 3
Savings deposits 4
Aug.
Sept.
Oct.
Nov.
Seasonally adjusted
DEBITS TO
Demand deposits2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 3
Savings deposits 4
July
109,642.3
47,769.4
61,873.1
1,405.5
741.4
128,440.8
57,392.7
71,048.1
1,588.7
633.1
154,556.0
70,445.1
84,110.9
1,920.8
539.0
187,035.1
89,201.2
97,833.9
2,188.0
382.6
188,874.2
91,040.8
97,833.4
2,320.1
417.4
194,457.3
92,961.7
101,495.6
2,414.8
421.0
197,997.9
95,252.0
102,745.9
2,704.8
428.4
197,222.5
95,919.7
101,302.9
2,292.5
456.5
187,594.4
96,829.5
90,764.9
2,501.0
424.9
379.7
1,528.0
240.9
15.6
5.4
434.4
1,843.0
268.6
15.8
5.0
496.5
2,168.9
301.8
16.7
4.5
553.3
2,504.5
323.5
16.2
3.0
556.4
2,417.2
324.2
16.8
3.2
567.6
2,437.0
333.4
16.9
3.2
573.9
2,519.8
334.5
18.4
3.1
569.6
2,493.4
329.2
15.2
3.2
538.2
2,513.2
292.8
16.1
2.9
DEPOSIT TURNOVER
Not seasonally adjusted
DEBITS TO
2
II
12
13
14
15
16
Demand deposits
Ail insured banks
Major New York City banks
Other banks
ATS-NOW accounts 3
MMDA5
Savings deposits 4
17
18
19
20
21
22
Demand deposits 2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 3
MMDA5
Savings deposits 4
109,517.6
47,707.4
64,310.2
1,397.0
567.4
742.0
128,059.1
57,282.4
70,776.9
1,579.5
848.8
632.9
154,108.4
70,400.9
83,707.8
1,903.4
1,179.0
538.7
188,924.1
91,315.2
97,608.9
2,356.3
1,697.2
385.9
198,657.9
96,686.1
101,971.8
2,240.4
1,575.9
419.9
186,892.9
88,807.6
98,085.3
2,140.8
1,530.6
413.7
198,433.5
96,489.1
101,944.4
2,524.1
1,612.9
414.2
204,618.4
98,837.9
105,780.4
2,231.9
1,607.4
449.2
167,465.5
85,849.7
81,615.8
2,255.1
1,434.0
382.7
379.9
1,510.0
240.5
15.5
2.8
5.4
433.5
1,838.6
267.9
15.7
3.5
5.0
497.4
2,191.1
301.6
16.6
3.8
4.5
564.1
2,570.0
326.0
17.4
4.8
3.0
587.8
2,620.6
338.7
16.3
4.4
3.2
554.7
2,421.9
326.6
15.1
4.2
3.1
577.6
2,603.6
332.6
17.3
4.4
3.0
593.5
2,656.9
343.9
14.9
4.4
3.2
476.4
2,225.4
260.8
14.6
3.8
2.6
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.
These data also appear on the Board's G.6 (406) release. For address, see inside
front cover.
A16
1.23
DomesticNonfinancialStatistics • March 1987
LOANS A N D SECURITIES
All Commercial Banks'
Billions of dollars; averages of Wednesday figures
1986
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Seasonally adjusted
1 Total loans and securities2
2 U.S. government securities
3 Other securities
4 Total loans and leases 2
5 Commercial and industrial
6
Bankers acceptances held 3 ..
7
Other commercial and
industrial
8
U.S. addressees 4
9
Non-U.S. addressees 4 ....
10 Real estate
11 Individual
12 Security
13 Nonbank financial
institutions
14 Agricultural
15 State and political
subdivisions
16 Foreign banks
17 Foreign official institutions . . .
18 Lease financing receivables...
19 All other loans
1,930.0
1,935.5
1,944.6
1,947.9
1,957.5
1,963.7
1,985.0
2,007.7
2,029.6
2,034.0
2,049.0
2,079.0
268.2
192.5
1,469.3
502.1
4.9
273.6
188.1
1,473.7
502.4
4.8
269.5
183.3
1,491.8
506.1
4.9
270.0
182.1
1,495.8
507.8
5.2
274.1
181.9
1,501.5
506.7
5.6
274.8
183.6
1,505.3
508.7
6.1
285.4
186.1
1,513.4
508.7
5.8
290.9
192.3
1,524.5
510.4
5.9
294.3
200.7
1,534.7
512.1
6.3
299.6
196.7
1,537.7
514.1
6.4
304.8
194.8
1,549.5
520.3
6.1
309.4
193.4
1,576.2
537.0
5.9
497.2
488.0
9.3
427.1
294.6
44.1
497.6
488.4
9.2
431.4
297.4
43.4
501.2
491.3
9.9
436.1
299.5
50.4
502.6
492.7
9.8
440.7
301.1
48.0
501.0
490.6
10.5
446.4
303.0
46.4
502.6
493.1
9.5
450.7
304.5
42.5
502.8
493.8
9.0
455.9
305.6
44.8
504.4
495.4
9.1
461.4
306.9
44.2
505.8
496.9
8.9
465.9
308.8
44.4
507.8
499.0
8.8
470.8
309.8
39.5
32.6
35.9
31.8
35.4
32.2
34.9
32.3
34.6
33.3
34.1
34.7
33.7
34.2
33.3
34.4
33.3
35.1
33.2
60.5
9.1
7.0
19.4
36.9
60.3
9.2
7.0
19.6
35.8
60.2
9.2
6.8
19.8
36.6
59.8
9.2
5.3
19.9
37.3
59.5
9.3
5.1
19.8
37.9
59.4
9.5
6.4
20.0
35.4
59.0
9.5
6.5
20.0
35.9
59.4
9.3
6.5
20.2
38.5
514.1
505.4
8.7
476.6'
311.1
40.1
531.1
522.6
8.5
486.3
313.1
37.3
35.7r
33. 1'
35.3
33.2'
35.4
33.2
59.4
9.4
6.4
20.4
39.7
58.5
9.1'
6.4
20.4
40.3'
57.8
9.0
6.2
21.0
38.9'
56.9
9.7
6.2
21.8
39.4
Not seasonally adjusted
20 Total loans and securities2
1,934.8
1,932.4
1,944.1
1,950.5
1,956.7
1,965.4
1,981.4
1,999.8
2,027.3
2,029.2
2,048.6
2,092.9
21 U.S. government securities
11 Other securities
li Total loans and leases2
24 Commercial and industrial....
25
Bankers acceptances held 3 ..
26
Other commercial and
industrial
27
U.S. addressees 4
28
Non-U.S. addressees 4 ....
29 Real estate
30 Individual
31 Security
32 Nonbank financial
institutions
33 Agricultural
34 State and political
subdivisions
35 Foreign banks
36 Foreign official institutions . . .
37 Lease financing receivables...
38 All other loans
267.7
193.8
1,473.3
501.4
4.9
275.0
188.9
1,468.5
500.1
4.7
273.2
183.9
1,487.1
506.9
5.0
274.0
181.8
1,494.7
510.0
5.2
275.4
182.2
1,499.0
508.5
5.5
276.2
182.5
1,506.7
509.4
6.0
285.3
183.9
1,512.1
508.6
6.0
289.1
192.1
1,518.7
508.3
5.9
292.6
200.7
1,534.0
511.2
6.1
295.2
196.3
1,537.7
513.1
6.2
302.5
194.8
1,551.3
519.3
6.2
307.1
194.6
1,591.3
539.5
6.3
496.5
487.3
9.2
427.3
297.0
46.8
495.4
486.3
9.1
430.6
296.3
42.6
501.9
492.7
9.2
434.9
296.8
49.5
504.9
495.4
9.5
439.5
298.6
48.5
503.0
493.3
9.7
445.2
301.1
45.6
503.4
494.0
9.4
450.2
303.1
42.5
502.6
493.3
9.3
455.8
304.9
43.0
502.4
493.1
9.4
461.7
307.2
41.3
505.2
495.9
9.3
466.9
310.2
41.8
506.9
497.7
9.2
472.2
311.4
38.7
513.0
503.8
9.2
478.1'
312.4
41.3
533.2
524.5
8.8
487.3
316.5
42.2
32.8
35.2
31.2
34.5
31.6
34.0
32.2
33.9
33.1
34.1
34.6
34.2
34.3
34.1
34.6
34.1
35.3
33.9'
35.5r
33.6'
35.4
33.2'
36.4
32.9
60.5
9.3
7.0
19.6
36.4
60.3
9.3
7.0
19.8
36.6
60.2
9.1
6.8
19.8
37.5
59.8
9.0
5.3
19.9
38.1
59.5
9.1
5.1
19.9
37.9
59.4
9.2
6.4
20.0
37.7
59.0
9.4
6.5
20.0
36.5
59.4
9.1
6.5
20.1
36.3
59.4
9.4
6.4
20.3
39. 1'
58.5
9.3
6.4
20.3
38.9'
57.8
9.3
6.2
20.9
37.4'
56.9
10.1
6.2
21.7
41.4
1. Data are prorated averages of Wednesday estimates for domestically chartered insured banks, based on weekly sample reports and quarterly universe
reports. For foreign-related institutions, data are averages of month-end estimates
based on weekly reports from large U.S. agencies and branches and quarterly
reports from all U.S. agencies and branches, New York investment companies
majority owned by foreign banks, and Edge Act corporations owned by domestically chartered and foreign banks.
2. Excludes loans to commercial banks in the United States.
3. Includes nonfinancial commercial paper held.
4. United States includes the 50 states and the District of Columbia.
NOTE. These data also appear in the Board's G.7 (407) release. For address, see
inside front cover.
Commercial Banking Institutions
1.24
A17
MAJOR NONDEPOSIT F U N D S OF COMMERCIAL BANKS 1
Monthly averages, billions of dollars
1986
source
Jan.
Total nondeposit funds
Seasonally adjusted 2
Not seasonally adjusted
Federal funds, RPs, and other
borrowings from nonbanks 3
3 Seasonally adjusted
4 Not seasonally adjusted
5 Net balances due to foreign-related
institutions, not seasonally
adjusted
1
2
Mar.
Feb.
Apr.
May
June
July
Aug.
Sept/
Oct/
Nov/
Dec.
131.7
131.8
131.7
134.4
141.2
143.7
134.1
135.0
135.7
137.9
132.6
131.3
136.1
132.1'
138.1
137.0''
142.8
141.1
140.3
138.6
143.0
144.2
143.1
142.8
151.6
151.6
152.7
155.3
160.6
163.1
160.4
161.3
157.9
160.0
157.1
155.8
166.3r
162.4r
168.4
167.3
167.9
166.1
168.3
166.5
165.5
166.7
162.8
162.5
-19.9
-21.0
-19.4
-26.3
-22.2
-24.5
-30.3
-30.3
-25.0
-28.0
-22.5
-19.7
-28.0
74.3
46.4
-25.8
69.4
43.6
-26.5
71.7
45.2
-30.2
75.2
45.1
-29.3
72.9
43.6
-30.5
72.2
41.7
-33.8
73.9
40.1
-31.2
75.2
44.0
-29.2
74.0
44.8
-31.9
73.5
41.6
-28.7
70.8
42.1
-30.7
73.4
42.7
8.1
57.6
65.7
4.8
60.0
64.8
7.1
60.7
67.8
3.9
62.5
66.4
7.1
60.0
67.1
6.0
62.8
68.7
3.5
64.1
67.7
.9
66.2
67.1
4.2
67.9
72.0
4.0
68.3
72.2
6.2
68.8
75.0
70.8
81.9
87.6
87.7
89.5
92.2
89.7
92.2
89.7
90.6
89.0
91.2
89.3
88.0
95.9
92.0
96.8
95.7
96.7
95.0
97.4
95.6
96.3
97.4
95.6
95.3
19.0
24.0
21.1
24.2
15.7
15.7
17.4
17.8
21.3
21.8
18.5
16.1
14.7
16.8
13.1
11.0
16.0
18.2
13.2
15.3
26.5
15.3
23.2
19.2
349.4
348.3
351.9
350.7
347.7
348.3
346.9
343.5
340.4
339.7
339.8
338.1
338.5
337.5
342.9
343.2
342.5
344.6
340.1
342.8
341.2
342.9
344.0
345.8
MEMO
6 Domestically chartered banks' net
positions with own foreign
branches, not seasonally
adjusted 4
7 Gross due from balances
8 Gross due to balances
9 Foreign-related institutions' net
positions with directly related
institutions, not seasonally
adjusted 5
10 Gross due from balances
11 Gross due to balances
Security RP borrowings
12 Seasonally adjusted"
13 Not seasonally adjusted
U.S. Treasury demand balances 7
14 Seasonally adjusted
15 Not seasonally adjusted
Time deposits, $100,000 or more 8
16 Seasonally adjusted
17 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.
Data for lines 1-4 and 12-17 have been revised in light of benchmarking and
revised seasonal adjustment.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars. Includes averages of
Wednesday data for domestically chartered banks and averages of current and
previous month-end data for foreign-related institutions.
11.0
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.
4. Averages of daily figures for member and nonmember banks.
5. Averages of daily data.
6. Based on daily average data reported by 122 large banks.
7. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
8. Averages of Wednesday figures.
A18
1.25
DomesticNonfinancialStatistics • March 1987
ASSETS A N D LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Last-Wednesday-of-Month Series
Billions of dollars
1986
Feb.
Mar.
Apr.
May
June
2,078.8
432.8
255.1
177.7
34.0
1,612.0
143.5
1,468.5
501.8
431.5
296.4
238.7
2,091.4
427.2
253.7
173.5
30.1
1,634.2
146.0
1,488.1
508.5
435.9
296.9
246.9
2,113.4
429.5
255.8
173.6
27.8
1,656.1
155.7
1,500.4
510.5
441.7
300.4
247.8
2,101.3
430.9
257.7
173.2
27.0
1,643.5
146.2
1,497.2
506.2
446.4
301.1
243.6
2,105.5
432.6
259.6
173.0
27.4
1,645.5
139.2
1,506.3
512.3
451.4
304.0
238.7
193.7
26.2
22.7
66.9
198.1
29.1
21.8
68.8
209.9
25.5
22.3
80.7
221.0
30.2
23.9
84.6
31.8
46.1
31.1
47.4
34.7
46.7
36.8
45.5
July
Aug.
Sept.
Oct.
Nov.
Dec.
2,134.0
445.7
269.6
176.1
28.7
1,659.6
148.6
1,511.0
507.3
457.6
305.6
240.5
2,154.4
455.1
272.2
183.0
29.3
1,670.0
149.4
1,520.6
510.1
463.2
308.4
238.8
2,171.1
464.6
275.9
188.7
27.9
1,678.5
145.3
1,533.2
512.1
467.7
310.5
242.9
2,173.2
467.4
281.8
185.6
26.0
1,679.9
146.8
1,533.1
512.6
473.5
311.8
235.2
2,218.1
470.4
286.2
184.3
28.1
1,719.5
161.0
1,558.6
520.2
479.3
312.8
246.3
2,307.8
474.5
291.3
183.2
29.3
1,803.9
172.8
1,631.2
562.7
496.4
319.9
252.2
196.0
27.9
23.0
67.3
206.2
28.2
23.3
72.1
205.8
27.9
23.7
73.5
196.6
27.8
22.9
66.3
200.4
31.2
23.5
66.2
223.9
31.7
22.2
86.5
271.2
40.8
25.7
111.2
32.0
45.8
33.8
48.7
33.6
47.1
32.3
47.4
32.6
46.9
37.7
45.8
42.6
51.0
ALL COMMERCIAL BANKING
INSTITUTIONS 1
1 Loans and securities
2 Investment securities
3
U.S. government securities
4
Other
5 Trading account assets
6 Total loans
7
Interbank loans
8
Loans excluding interbank
Commercial and industrial
9
10
Real estate
Individual
11
All other
12
13 Total cash assets
14 Reserves with Federal Reserve Banks
15 Cash in vault
16 Cash items in process of collection . . .
17 Demand balances at U.S. depository
institutions
18 Other cash assets
19 Other assets
186.5
195.3
207.0
195.9
196.6
196.6
196.2
200.8
198.2
201.9
223.6
20 Total assets/total liabilities and capital . . .
2,458.9
2,484.8
2,530.3
2,518.3
2,498.1
2,536.7
2,556.4
2,568.4
2,571.8
2,643.9
2,802.5
21
22
23
24
25
26
27
1,746.4
492.1
457.2
797.1
•374.7
169.1
168.8
1,762.8
502.5
462.0
798.3
373.1
179.3
169.7
1,798.4
540.7
467.8
789.9
390.7
170.4
170.8
1,807.4
542.7
477.3
787.5
367.4
173.1
170.3
1,791.9
523.3
482.4
786.3
366.8
168.5
170.9
1,819.5
540.0
490.8
788.7
379.2
168.6
169.4
1,833.6
544.2
497.7
791.7
377.3
174.7
170.8
1,830.8
537.4
504.4
789.0
388.1
177.5
172.1
1,843.7
547.5
514.8
781.4
380.0
175.1
173.1
1,896.8
594.8
521.7
780.3
394.1
180.2
172.8
2,015.1
689.7
533.9
791.5
411.6
200.3
175.5
278.4
273.7
274.0
275.1
276.5
288.8
289.8
292.5
298.5
303.6
308.8
188.4
183.6
183.3
182.8
183.5
185.6
194.6
200.0
194.8
195.0
195.1
1,964.0
420.8
249.6
171.2
34.0
1,509.2
115.8
1,393.5
446.2
426.4
296.2
224.7
1,972.4
416.0
248.5
167.5
30.1
1,526.3
120.2
1,406.1
448.2
430.7
296.6
230.7
1,993.3
416.1
248.8
167.2
27.8
1,549.4
129.3
1,420.1
452.3
436.3
300.1
231.4
1,985.3
417.1
250.2
166.9
27.0
1,541.3
123.3
1,418.0
449.8
440.7
300.8
226.7
1,990.0
419.6
253.1
166.5
27.4
1,543.0
117.3
1,425.8
452.5
445.8
303.6
223.9
2,014.0
432.5
263.2
169.4
28.7
1,552.8
122.7
1,430.1
448.4
451.9
305.3
224.6
2,029.4
440.2
264.5
175.7
29.3
1,559.8
123.1
1,436.7
448.4
457.3
308.1
222.9
2,039.8
448.0
267.5
180.5
27.9
1,564.0
118.9
1,445.1
447.2
461.7
310.1
226.1
2,046.2
450.6
272.9
177.8
26.0
1,569.6
122.5
1,447.1
447.2
467.6
311.5
220.8
2,090.2
454.4
278.1
176.4
28.1
1,607.6
137.8
1,469.9
453.9
472.7
312.4
230.8
2,154.4
456.5
282.0
174.5
29.3
1,668.6
141.9
1,526.6
485.9
489.2
319.5
232.0
42 Total cash assets
43 Reserves with Federal Reserve Banks
44 Cash in vault
45 Cash items in process of collection . . .
46 Demand balances at U.S. depository
institutions
47 Other cash assets
179.1
25.5
22.6
66.5
182.7
28.4
21.7
68.4
194.3
24.4
22.2
80.3
205.8
28.7
23.8
84.2
180.1
26.3
22.9
66.7
187.8
27.2
23.2
71.7
189.3
26.6
23.7
73.1
180.4
26.9
22.8
65.9
183.1
29.7
23.4
65.5
207.6
29.8
22.2
86.1
251.7
39.7
25.6
110.8
30.1
34.3
29.4
34.7
33.0
34.3
35.1
34.0
30.2
34.0
32.0
33.6
31.9
34.1
30.5
34.4
30.9
33.6
35.8
33.7
40.2
35.4
48 Other assets
134.6
144.0
150.3
142.8
144.1
143.2
141.7
145.5
142.7
143.0
164.3
49 Total assets/total liabilities and capital . . .
2,277.8
2,299.1
2,337.9
2,334.0
2,314.1
2,345.0
2,360.3
2,365.7
2,372.1
2,440.8
2,570.4
50
51
52
53
54
55
56
1,698.2
484.8
455.3
758.1
304.9
109.0
165.6
1,713.1
495.0
460.1
758.1
304.8
114.6
166.5
1,749.1
533.1
465.8
750.1
309.1
112.0
167.7
1,758.7
535.3
475.2
748.1
294.2
113.9
167.2
1,741.4
515.5
480.3
745.6
293.5
111.5
167.8
1,768.0
532.1
488.7
747.2
300.5
110.3
166.2
1,779.9
536.1
495.5
748.2
295.5
117.3
167.7
1,775.2
529.3
502.1
743.8
305.2
116.4
168.9
1,788.6
539.7
512.5
736.5
299.3
114.2
169.9
1,840.5
586.8
519.2
734.5
312.6
118.0
169.6
1,953.3
680.8
531.5
741.0
322.6
122.1
172.4
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
MEMO
28 U.S. government securities (including
trading account)
29 Other securities (including trading
account)
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 2
30 Loans and securities
31 Investment securities
U.S. government securities
32
Other
33
34 Trading account assets
35 Total loans
36
Interbank loans
Loans excluding interbank
37
Commercial and industrial
38
Real estate
39
Individual
40
All other
41
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
1. Commercial banking institutions include insured domestically chartered
commercial banks, branches and agencies of foreign banks, Edge Act and
Agreement corporations, and New York State foreign investment corporations.
2. Insured domestically chartered commercial banks include all member banks
and insured nonmember banks.
NOTE. Figures are partly estimated. They include all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries. Loan and securities data for domestically chartered commercial banks are estimates for the last
Wednesday of the month based on a sample of weekly reporting banks and
quarter-end condition report data. Data for other banking institutions are estimates made for the last Wednesday of the month based on a weekly reporting
sample of foreign-related institutions and quarter-end condition reports.
Weekly Reporting
1.26
Commercial
Banks
A19
ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1.4 Billion or More on
December 31, 1982, Assets and Liabilities
Millions of dollars, Wednesday figures
1986
Account
Nov.
1
2
3
4
6
7
8
9
10
11
1?
13
14
15
16
17
18
19
70
71
??
73
74
?5
76
27
Cash and balances due from depository institutions
Total loans, leases and securities, net
U.S. Treasury and government agency
Trading account
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities
Trading account
Investment account
States and political subdivisions, by maturity
One year or less
Over one year
Other bonds, corporate stocks, and securities
Other trading account assets
Federal funds sold1
To commercial banks
To nonbank brokers and dealers in securities
Other loans and leases, gross2
Other loans, gross2
Commercial and industrial2
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans2
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other
Lease financing receivables
78
29
30
31
3?
33
34
35
36
37
38
39
40 LESS: U n e a r n e d i n c o m e
Loan and lease reserve 2
41
2
4? Other loans and leases, net
43 All other assets
44
45
46
47
48
49
50
51
5?
53
S4
55
56
57
58
59
60
61
6?
63
64
65
66
Total assets
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits
Nontransaction balances
Individuals, partnerships and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Foreign governments, official institutions and banks
Liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money3
Other liabilities and subordinated note and debentures
Total liabilities
Residual (total assets minus total liabilities)4
5
Nov.
12
Nov. W
Nov.
26
Dec.
3
Dec.
10
Dec.
17
Dec.
24
Dec.
31
100,844'
117,408'
106,518
106,840'
107,196
105,593
112,947
107,968
135,495
975,222'
976,309'
984,400
988,844'
996,388
984,068
995,987
1,009,148
1,021,010
110,566'
22,113
88,453'
16,749
40,168
31,536'
72,332'
4,767
67,564'
57,548
9,669
47,879
10,0^
5,364
110,558'
20,750
89,808'
16,549
40,336
32,922'
72,846'
5,183
67,662'
57,769
9,616
48,153
9,894'
4,780
112,042
21,321
90,720
16,924
41,762
32,034
71,866
4,792
67,075
57,510
9,672
47,838
9,564
4,910
113,975'
21,466'
92,508'
17,209
41,992
33,307'
5,488
66,493'
56,836
9,319
47,517
9,656'
5,728
118,357
25,356
93,001
17,762
42,314
32,926
71,465
5,373
66,092
56,301
8,920
47,381
9,791
6,256
115,870
23,497
92,373
17,687
41,614
33,072
71,044
5,106
65,938
56,128
8,960
47,167
9,810
6,059
114,182
21,815
92,367
17,715
41,690
32,962
70,692
5,395
65,297
55,792
8,899
46,894
9,504
5,371
115,153
21,424
93,730
17,703
42,129
33,898
71,782
5,967
65,815
55,922
8,707
47,216
9,893
4,984
115,372
21,483
93,889
17,919
42,308
33,662
72,210
7,227
64,982
54,629
8,106
46,524
10,353
5,178
64,195
40,841
15,862
7,492
744,405'
727,068'
261,997'
2,492
259,505'
255.339'
4,166
61,757
37,930
15,893
7,934
748,017'
730,663'
262,997'
2,442
260,555'
256,393'
4,162
65,465
40,749
16,198
8,518
751,861
734,434
263,778
2,638
261,140
257,063
4,077
61,034'
36,437'
16,643
7,954'
757,923'
740,426'
263,484'
2,496
260,988'
257,099'
3,890
61,764
39,434
15,136
7,194
760,551
743,020
266,454
2,725
263,729
259,882
3,847
57,038
33,204
15,869
7,966
756,064
738,404
265,917
2,452
263,465
259,604
3,861
61,900
39.911
14,806
7,182
765,830
748,196
269,030
2,582
266,448
262,618
3,830
57,710
36,223
14,697
6,791
781,336
763,536
276,175
2,464
273,711
269,816
3,895
51,480
31,501
13,844
6,134
798,522
780,512
289,111
2,446
286,665
282,909
3,756
200,575
141,110
48,049'
16,435
4,687'
26,927'
13,572
5,791
35,300
3,213
17,459'
17,338'
4,956'
16,683'
722,766'
132,968'
201,464
141,369
48,438'
16,456
4,746'
27,237'
14,270
5,723
35,247
3,124
18,031'
17,354'
4,977'
16,671'
726,368'
128,175'
202,709
141,800
49,289
16,848
5,197
27,244
15,032
5,707
35,304
3,247
17,565
17,427
5,030
16,713
730,118
122,024
202,835
142,208
50,806'
17,974
6,342'
26,491
18,602
5,684
35,230
3,342
18,234'
17,497
5,033
16,763
736,127'
123,691'
203,606
142,557
50,010
17,683
5,644
26,683
16,991
5,669
35,104
3,305
19,323
17,531
4,988
17,016
738,546
129,201
204,618
142,970
48,297
16,975
5,447
25,875
15,131
5,598
34,819
3,128
17,925
17,661
5,007
17,001
734,055
127,166
206,144
143,777
49,876
18,118
5,098
26,659
17,257
5,592
34,684
3,042
18,793
17,634
5,009
16,978
743,842
130,882
207,129
145,014
53,511
20,266
6,681
26,564
17,962
5,611
34,724
2,982
20,426
17,800
5,041
16,777
759,518
132,075
209,352
145,744
56,246
20,547
6,690
29,009
14,367
5,780
34,539
3,352
22,020
18,010
5,052
16,701
776,769
141,945
1,219,376' 1,232,785
1,216,828
1,239,816
1,249,191
1,298,450
235,235
181,457
5,702
2,425
27,079
6,988
707
10,877
54,910
502,109
464,328
26,061
784
9,855
1,081
253,061
0
2,102
250,959
86,191
244,491
187,437
6,138
1,491
28,735
5,714
758
14,218
55,829
501,358
463,660
25,766
752
10,090
1,090
265,774
1,439
15,253
249,082
87,412
251,829
191,671
5,956
3,022
30,086
7,298
948
12,848
56,954
504,161
466,370
25,530
754
10,448
1,058
259,041
0
17,578
241,462
92,428
290,483
223,527
6,994
1,840
33,838
7,773
888
15,624
60,093
509,177
471,044
25,537
762
10,798
1,035
263,387
443
18,550
244,393
89,687
1,154,864 1,164,413
1,212,826
1 , 2 0 9 , 0 3 4 ' 1 , 2 2 1 , 8 9 2 ' 1,212,943
229,331'
174,350'
5,576
4,464
25,514
6,134
954
12,339
53,125
499,926'
461,465'
25,984'
916
10,389
1,172
255,584'
2,831
2,600'
250,153'
86,521'
244,430'
189,328'
5,224
1,921
27,726
6,485
1,252
12,493
53,128
500,133'
462.07C
25,855'
807
10,241'
1,160
258,294'
110
5,757'
252,428'
81,112'
224,563
170,026
5,209
3,904
25,911
6,828
838
11,847
52,698
500,416
462,449
26,032
804
9,981
1,151
263,957
3,319
8,891
251,746
86,633
1 , 1 2 4 , 4 8 8 ' 1,137,098' 1,128,268
71,98c
238,557'
181,456'
5,694
2,749
28,071'
6,866
1,004
12,718
53,313
500,632
462,829'
25,953'
781
9,935
1,133
255,753'
25
10,450
245,278'
86,801'
242,311
183,584
5,425
3,919
27,979
6,825
914
13,664
55,286
500,998
463,280
26,100
794
9,683
1,140
263,922
373
7,355
256,194
85,435
1,135,056' 1,147,951 1,131,506
84,546
84,794
84,675
84,32C
84,834
85,322
84,952
84,778
85,624
939,586'
751,324'
152,477
1,750
1,055
695
220,198
943,572'
755,389'
152,551
1,746
1,029
717
220,478
948,546
759,729
152,456
1,688
975
712
221,016
956,229'
764,546'
151,812
1,651
971
680
221,745
961,275
765,198
151,357
1,631
950
680
222,687
955,897
762,924
151,941
1,713
1,003
710
223,531
959,946
769,701
151,383
1,756
1,004
752
223,718
974,477
782,557
153,942
1,889
1,088
801
223,850
990,714
797,954
154,441
1,833
1,013
820
227,943
MEMO
67
68
69
70
71
7?
73
Total loans and leases (gross) and investments adjusted 5
Total loans and leases (gross) adjusted 2,5
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates—total6
Commercial and industrial
Other
Nontransaction savings deposits (including MMDAs)
1. Includes securities purchased under agreements to resell.
2. Levels of major loan items were affected by the Sept. 26, 1984, transaction
between Continental Illinois National Bank and the Federal Deposit Insurance
Corporation. For details see the H.4.2 statistical release dated Oct. 5, 1984.
3. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
4. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
5. Exclusive of loans and federal funds transactions with domestic commercial
banks.
6. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
A20
1.28
DomesticNonfinancialStatistics • March 1987
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures except as noted
1986
Account
Nov. 5
1 Cash and balances due from depository institutions
2 Total loans, leases and securities, net1
Securities
3 U.S. Treasury and government agency2
4 Trading account 2
5 Investment account, by maturity
6
One year or less
7
Over one through five years
8
Over five years
9 Other securities2
10 Trading account 2
11 Investment account
12
States and political subdivisions, by maturity
13
One year or less
14
Over one year
Other bonds, corporate stocks and securities
15
16 Other trading account assets 2
Loans and leases
17 Federal funds sold3
18 To commercial banks
19 To nonbank brokers and dealers in securities
20 To others
21 Other loans and leases, gross
22 Other loans, gross
23
Commercial and industrial
24
Bankers acceptances and commercial paper
25
All other
26
U.S. addressees
27
Non-U.S. addressees
28
Real estate loans
29
To individuals for personal expenditures
To depository and financial institutions
30
31
Commercial banks in the United States
32
Banks in foreign countries
33
Nonbank depository and other financial institutions
34
For purchasing and carrying securities
35
To finance agricultural production
36
To states and political subdivisions
37
To foreign governments and official institutions
38
All other
39 Lease financing receivables
40 LESS: Unearned income
41
Loan and lease reserve
42 Other loans and leases, net
43 All other assets 4
44 Total assets
Deposits
45 Demand deposits
46 Individuals, partnerships, and corporations
47 States and political subdivisions
48 U.S. government
49 Depository institutions in the United States
50 Banks in foreign countries
51 Foreign governments and official institutions
52 Certified and officers' checks
53 Transaction balances other than demand deposits
ATS, NOW, Super NOW, telephone transfers)
54 Nontransaction balances
55 Individuals, partnerships and corporations
56 States and political subdivisions
57 U.S. government
58 Depository institutions in the United States
59 Foreign governments, official institutions and banks
60 Liabilities for borrowed money
61 Borrowings from Federal Reserve Banks
62 Treasury tax-and-loan notes
63 All other liabilities for borrowed money5
64 Other liabilities and subordinated note and debentures
65 Total liabilities
66 Residual (total assets minus total liabilities)6
Nov. 12
Nov. 19
Nov. 26
Dec. 3
Dec. 10
Dec. 17
Dec. 24
Dec. 31
26,312'
30,884'
29,010'
28,236
26,092
28,839
30,069
25,957
32,884
208,490^
212,409'
217,154'
216,409'
216,340
212,332
216,971
219,590
219,526
0
0
13,524
1,221
5,360
6,943
0
0
16,178
13,969
1,924
12,045
2,209
0
0
0
13,826
1,234
5,566
7,027
0
0
16,407
14,381
1,885
12,497
2,025
0
0
0
13,701
1,234
5,521
6,945
0
0
16,318
14,301
1,902
12,400
2,017
0
0
0
14,108
1,233
5,874
7,001
0
0
16,261
14,237
1,833
12,404
2,024
0
0
0
14,172
1,503
5,689
6,980
0
0
16,213
14,174
1,793
12,381
2,039
0
0
0
13,809
1,437
5,355
7,016
0
0
16,167
14,162
1,781
12,380
2,006
0
0
0
13,580
1,415
5,404
6,761
0
0
15,879
14,176
1,809
12,368
1,703
0
0
0
13,500
1,419
5,395
6,686
0
0
16,447
14,648
1,787
12,862
1,799
0
0
0
13,529
1,423
5,330
6,775
0
0
16,484
14,616
1,696
12,920
1,868
0
27,294
13,213
7,974
6,107
157,761r
153,559'
60,721'
637
60,084'
59,692'
392
34,266
19,717
16,846'
7,762
2,120
6,965'
6,950
282
8,632
948
5,197'
4,202'
1,527'
4,740'
151,493'
73,254'
28,474
14,290
7,871
6,312
160,006'
155,811'
61,136'
739
60,397'
59,993'
404
34,498
19,799
17,159'
7,661
2,176
7,321'
7,511
260
8,652
884
5,911'
4,195'
1,526'
4,778'
153,702'
69,204'
31,204
16,303
8,419
6,482
162,281'
158,032'
61,434'
806
60,628'
60,196'
432
34,914
19,841
18,072'
8,274
2,534
7,264'
8,241
284
8,706
892
5,646'
4,250'
1,566'
4,784'
155,931'
65,067'
24,837'
10,167
8,374
6,296'
167,565
163,284
61,422
740
60,682
60,275
407
35,165
19,918
19,908
9,417
3,455
7,035
10,772
310
8,674
1,005
6,110
4,281
1,575
4,787
161,203
67,094
25,740
12,308
7,549
5,883
166,675
162,378
62,287
956
61,331
60,978
352
35,406
19,996
18,787
9,225
2,724
6,839
9,203
310
8,664
990
6,734
4,297
1,551
4,909
160,215
71,372
25,711
11,183
8,034
6,494
163,109
158,833
61,764
680
61,084
60,708
375
35,727
20,116
17,331
8,848
2,679
5,804
8,177
297
8,410
839
6,171
4,276
1,553
4,912
156,644
69,144
27,740
14,556
7,459
5,725
166,228
161,936
62,323
742
61,582
61,214
368
35,994
20,208
18,891
9,778
2,462
6,650
9,221
325
8,381
771
5,822
4,292
1,565
4,892
159,771
71,900
24,440
11,797
7,267
5,376
171,608
167,307
63,980
548
63,432
63,044
388
36,557
20,483
20,479
10,716
3,076
6,686
9,501
334
8,429
722
6,822
4,302
1,569
4,837
165,203
71,241
20,477
10,054
5,858
4,565
175,324
171,026
67,561
544
67,016
66,585
432
37,504
20,750
21,610
11,321
3,061
7,229
6,091
346
8,413
1,072
7,679
4,298
1,562
4,728
169,035
79,865
308,057'
312,497'
311,232'
311,739'
313,805
310,314
318,940
316,789
332,275
59,369
40,140
698
834
5,775
4,895
780
6,246
62,933'
42,516'
572
257
6,411
5,176
1,093
6,908
59,115
38,944'
640
647'
6,387
5,638
665
6,194
62,341'
42,064
590
524
6,592'
5,527
843
6,201
63,939
42,231
713
850
7,101
5,560
764
6,720
63,874
44,555
704
466
6,951
5,663
568
4,967
66,194
45,484
614
215
7,370
4,500
608
7,404
66,372
45,521
728
587
7,900
5,814
795
5,028
78,411
55,129
1,106
245
9,213
6,453
681
5,583
6,379
94,826'
85,533'
6,229
82
2,387
595
82,386'
1,245
632
80,51(K
37,563'
6,579
94,631'
85,414'
6,175
80
2,355
606
86,834'
0
1,742
85,093'
33.94C
6,509
94,940'
85,757'
6,164
74
2,337
607
85,102'
750
2,154
82,198'
38,004'
6,595
95,344
86,022
6,244
63
2,413
602
82,427'
0
2,390
80,037'
37,784
6,800
95,480
86,122
6,442
64
2,240
611
83,625
0
1,532
82,094
36,388
6,808
95,238
86,027
6,392
62
2,167
589
80,213
0
440
79,772
36,270
7,097
95,920
87,009
6,118
59
2,145
588
83,973
800
3,652
79,521
37,919
7,434
96,345
87,482
6,008
56
2,221
579
80,317
0
4,392
75,925
39,087
7,742
97,844
88,643
6,064
50
2,524
563
80,216
0
4,609
75,608
39,978
280,523'
284,917'
283,671'
284,492'
286,232
282,402
291,104
289,555
304,191
27,534
27,580
27,561
27,247
27,573
27,912
27,836
27,234
28,084
193,782'
164,080'
33,851
196,761'
166,528'
34,022
198,928'
168,909'
34,115'
203,188'
172,818'
34,127
201,268
170,882
34,390
198,766
168,789
34,229
199,094
169,634
34,093
203,482
173,535
34,743
204,440
174,427
35,176
MEMO
67 Total loans and leases (gross) and investments adjusted1'7
68 Total loans and leases (gross) adjusted 7
69 Time deposits in amounts of $100,000 or more
1. Excludes trading account securities.
2. Not available due to confidentiality.
3. Includes securities purchased under agreements to resell.
4. Includes trading account securities.
5. Includes federal funds purchased and securities sold under agreements to
repurchase.
6. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
7. Exclusive of loans and federal funds transactions with domestic commercial
banks.
NOTE. These data also appear in the Board's H.4.2 (504) release. For address,
see inside front cover.
Weekly Reporting
1.30
Commercial
LARGE WEEKLY REPORTING U.S. BRANCHES A N D AGENCIES OF FOREIGN BANKS'
Liabilities
Banks
A21
Assets and
Millions of dollars, Wednesday figures
1986
Account
Nov.
37
38
39
40
Cash and due from depository institutions.
Total loans and securities
U.S. Treasury and govt, agency securities
Other securities
Federal funds sold2
To commercial banks in the United States
To others
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial
paper
All other
U.S. addressees
Non-U.S. addressees
To financial institutions
Commercial banks in the United States .
Banks in foreign countries
Nonbank financial institutions
To foreign govts, and official institutions ..
For purchasing and carrying securities ..
All other
Other assets (claims on nonrelated parties)..
Net due from related institutions
Total assets
Deposits or credit balances due to other
than directly related institutions....
Transaction accounts and credit balances3
Individuals, partnerships, and
corporations
Other
Nontransaction accounts 4
Individuals, partnerships, and
corporations
Other
Borrowings from other than directly
related institutions
Federal funds purchased 5
From commercial banks in the
United States
From others
Other liabilities for borrowed money....
To commercial banks in the
United States
To others
Other liabilities to nonrelated parties
Net due to related institutions
Total liabilities
41
42
Total loans (gross) and securities adjusted 6
Total loans (gross) adjusted 6
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
5
Nov.
12
Nov.
19
Nov.
26
Dec.
3
Dec.
10
Dec.
17
Dec.
24
Dec.
31
10,092
73,508
5,239
5,511
4,045
3,0%
948
58,713
36,840
10,131
75,640
5,376
5,424
5,639
4,823
816
59,200
37,052
10,467
75,329
5,592
5,408
6,285
5,437
848
58,044
36,515
9,879
74,922
5,757
5,477
3,823
3,110
713
59,865
36,937
10,195
77,993
5,985
5,463
5,502
4,589
913
61,042
38,094
9,628
79,000
6,232
5,641
5,002
4,028
973
62,125
38,510
9,616
81,849
6,100
5,678
5,664
4,717
947
64,407
38,570
9,651
87,080
6,066
5,846
5,137
4,218
918
70,032
41,090
11,777
91,819
6,508
6,102
6,674
5,678
996
72,536
43,211
2,969
33,870
31,546
2,325
14,187
11,037
1,066
2,083
527
2,588
4,572
23,292
14,043
120,936
2,980
34,071
31,810
2,261
14,196
10,791
1,116
2,290
536
2,514
4,902
23,022
13,582
122,376
2,919
33,596
31,397
2,199
14,211
10,721
1,149
2,341
521
1,975
4,821
23,360
14,287
123,444
2,990
33,947
31,742
2,206
14,453
11,113
1,077
2,263
545
2,925
5,005
23,226
14,627
122,654
3,033
35,062
32,814
2,248
15,056
11,749
1,031
2,276
510
2,363
5,019
22,878
12,410
123,476
3,136
35,374
33,227
2,147
15,259
11,810
1,048
2,401
512
2,755
5,090
23,307
13,615
125,550
2,999
35,571
33,354
2,217
16,034
12,360
1,099
2,575
518
3,635
5,649
23,286
14,281
129,032
3,031
38,058
35,620
2,438
17,378
13,388
1,038
2,952
505
4,852
6,207
22,894
16,498
136,122
3,157
40,054
37,989
2,064
17,286
12,746
1,249
3,290
548
5,105
6,386
23,623
14,388
141,607
36,034
3,124
36,986
3,333
36,744
3,229
37,279
3,260
37,383
3,600
37,428
3,505
38,849
3,960
40,348
3,578
42,357
3,974
1,924
1,200
32,909
1,821
1,513
33,653
1,973
1,255
33,515
1,827
1,432
34,019
2,006
1,593
33,784
1,989
1,515
33,923
2,082
1,878
34,889
2,180
1,398
36,770
1,896
2,078
38,383
26,738
6,171
27,252
6,400
27,082
6,434
27,160
6,859
27,270
6,514
27,418
6,505
28,367
6,522
30,112
6,658
31,421
6,963
50,393
29,328
47,412
25,862
48,359
25,375
46,948
21,466
47,890
24,298
47,613
24,170
48,447
24,656
53,087
23,552
50,596
21,956
19,534
9,793
21,065
17,523
8,340
21,550
16,519
8,856
22,984
13,807
7,658
25,482
16,445
7,853
23,591
15,531
8,639
23,443
15,092
9,564
23,790
14,516
9,036
29,535
12,131
9,826
28,640
18,932
2,134
24,885
9,624
120,936
19,146
2,404
24,708
13,270
122,376
20,397
2,587
25,095
13,246
123,444
22,738
2,745
25,113
13,313
122,654
20,606
2,985
24,735
13,468
123,476
20,310
3,134
25,423
15,086
125,550
20,556
3,234
25,433
16,303
129,032
25,540
3,996
25,296
17,391
136,122
24,394
4,245
25,142
23,511
141,607
59,374
48,624
60,026
49,226
59,171
48,171
60,699
49,465
61,655
50,206
63,161
51,288
64,772
52,993
69,473
57,562
73,395
60,785
MEMO
1. Effective Jan. 1, 1986, the reporting panel includes 65 U.S. branches and
agencies of foreign banks that include those branches and agencies with assets of
$750 million or more on June 30, 1980, plus those branches and agencies that had
reached the $750 million asset level on Dec. 31, 1984.
2. Includes securities purchased under agreements to resell.
3. Includes credit balances, demand deposits, and other checkable deposits.
4. Includes savings deposits, money market deposit accounts, and time
deposits.
5. Includes securities sold under agreements to repurchase.
6. Exclusive of loans to and federal funds sold to commercial banks in the
United States.
A22
1.31
DomesticNonfinancialStatistics • March 1987
GROSS D E M A N D DEPOSITS Individuals, Partnerships, and Corporations'
Billions of dollars, estimated daily-average balances, not seasonally adjusted
Commercial banks
Type of holder
1981
Dec.
1982
Dec.
1983
Dec.
1985
1984
Dec.
June 3 4
Sept.
1986
Dec.
Mar.
June
Sept.?
1 All holders—Individuals, partnerships, and
corporations
288.9
291.8
293.5
302.7
298.4
299.3
321.0
307.4
324.7
333.6
2
3
4
5
6
28.0
154.8
86.6
2.9
16.7
35.4
150.5
85.9
3.0
17.0
32.8
161.1
78.5
3.3
17.8
31.7
166.3
81.5
3.6
19.7
27.9
164.5
82.8
3.7
19.5
28.1
167.2
82.0
3.5
18.5
32.3
178.5
85.5
3.5
21.2
31.8
166.6
84.0
3.4
21.6
32.2
182.0
86.4
3.0
21.1
35.9
185.9
86.3
3.3
22.2
Financial business
Nonfinancial business
Consumer
Foreign
Other
Weekly reporting banks
1981
Dec.
1982
Dec.
1983
Dec.
1985
1984
Dec. 2
June
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
Sept.
1986
Dec.
Mar.
June
Sept.?
137.5
144.2
146.2
157.1
151.2
153.6
168.6
159.7
168.5
174.7
21.0
75.2
30.4
2.8
8.0
26.7
74.3
31.9
2.9
8.4
24.2
79.8
29.7
3.1
9.3
25.3
87.1
30.5
3.4
10.9
22.1
83.7
31.0
3.5
10.9
22.7
85.5
31.6
3.3
10.5
25.9
94.5
33.2
3.1
12.0
25.5
86.8
32.6
3.3
11.5
25.7
93.1
34.9
2.9
11.9
28.9
94.8
35.0
3.2
12.8
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.
Figures may not add to totals because of rounding.
2. Beginning in March 1984, these data reflect a change in the panel of weekly
reporting banks, and are not comparable to earlier data. Estimates in billions of
dollars for December 1983 based on the new weekly reporting panel are: financial
business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; other,
9.5.
3. Beginning March 1985, financial business deposits and, by implication, total
gross demand deposits have been redefined to exclude demand deposits due to
34
thrift institutions. Historical data have not been revised. The estimated volume of
such deposits for December 1984 is $5.0 billion at all insured commercial banks
and $3.0 billion at weekly reporting banks.
4. Historical data back to March 1985 have been revised to account for
corrections of bank reporting errors. Historical data before March 1985 have not
been revised, and may contain reporting errors. Data for all commercial banks for
March 1985 were revised as follows (in billions of dollars): all holders, - . 3 ;
financial business, - . 8 ; nonfinancial business, - . 4 ; consumer, .9; foreign, .1;
other, - . 1 . Data for weekly reporting banks for March 1985 were revised as
follows (in billions of dollars): all holders, - . 1 ; financial business, - . 7 ; nonfinancial business, - . 5 ; consumer, 1.1; foreign, .1; other, - . 2 .
Financial Markets
1.32
A23
COMMERCIAL PAPER A N D BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1986
Instrument
Dec.
Dec.
Dec.
Dec.
Dec.
June
July
Sept.
Aug.
Oct.
Nov.
Commercial paper (seasonally adjusted unless noted otherwise)
166,436
1 All issuers
2
3
4
5
6
Financial companies3
Dealer-placed paper4
Total
Bank-related (not seasonally
adjusted)
Directly placed paper5
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies 6
187,658
237,586
300,899
332,330
310,711
311,435
326,601
326,567
329,516
321,907
34,605
44,455
56,485
78,443
100,942
89,757
90,038
94,084
97,994
99,688
93,548
2,516
2,441
2,035
1,602
2,265
1,568
1,772
1,799
1,980
2,172
2,031
84,393
97,042
110,543
135,504
152,159
142,933
142,121
149,200
147,497
147,163
146,434
32,034
47,437
35,566
46,161
42,105
70,558
44,778
86,952
40,860
79,229
40,147
78,021
39,067
79,276
40,415
83,317
37,455
81,076
38,957
82,665
39,205
81,925
Bankers dollar acceptances (not seasonally adjusted)7
79,543
11
12
13
68,115
64,912
67,080
66,437
64,480
67,009
65,920
64,952
9,355
8,125
1,230
9,811
8,621
1,191
11,174
9,448
1,726
13,419
11,703
1,716
12,789
10,641
2,147
11,577
9,257
2,320
12,127
9,794
2,333
13,101
11,001
2,101
12,569
10,178
2,391
12.787
10,951
1,835
418
729
67,807
0
671
66,639
0
937
56,004
0
1,317
50,176
0
896
53,396
0
931
53,929
0
897
51,456
0
924
52,984
0
1,131
52,220
0
1,052
51.113
17,683
16,328
45,531
Basis
14 Imports into United States
15 Exports from United States
16 All other
8
9
10
77,121
1,480
949
66,204
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
78,309
10,910
9,471
1,439
7 Total
15,649
16,880
45,781
17,560
15,859
43,702
15,147
13,204
39,765
14,682
12,933
37,297
15,106
13,721
38,254
15,601
13,781
37,056
15,796
12,948
35,736
16,612
12,693
37,704
15,980
12,612
37,328
15.352
12,701
36,899
1. 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.
2. Correction of a previous misclassification of paper by a reporter has created
a break in the series beginning December 1983. The correction adds some paper to
nonfinancial and to dealer-placed financial paper.
3. Institutions engaged primarily in activities such as, but not limited to,
commercial, savings, and mortgage banking; sales, personal, and mortgage
financing; factoring, finance leasing, and other business lending; insurance
underwriting; and other investment activities.
1.33
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.
7. Beginning October 1984, the number of respondents in the bankers acceptance survey were reduced from 340 to 160 institutions—those with $50 million or
more in total acceptances. The new reporting group accounts for over 95 percent
of total acceptances activity.
PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum
Effective Date
11.50
12.00
12.50
13.00
12.75
12.50
12.00
11.75
11.25
10.75
1985-- J a n . 15..
May 20..
June 18..
Average
rate
10.50
10.00
9.50
11.00
11.00
7..
21..
11..
26..
9.00
8.50
8.00
7.50
NOTE. These data also appear in the Board's H.15 (519) release. For address,
see inside front cover.
11.21
11.93
12.39
12.60
13.00
13.00
12.97
12.58
11.77
11.06
1986—Jan
Feb
Mar
Apr
May
1985—Jan. .
Feb.
Mar.
Apr.
May.
June
1986-- M a r .
Apr.
July
Aug.
1984—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
10.61
10.50
10.50
10.50
10.31
9.78
July
Aug
Sept
Oct
Nov
Dec
1985—July
Aug
Sept
Oct
Nov
Dec
A24
1.35
DomesticNonfinancialStatistics • March 1987
INTEREST RATES Money and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1986
Instrument
1984
1985
1986, week ending
1986
Sept.
Oct.
Nov.
Dec.
Nov. 28
Dec. 5
Dec. 12
Dec. 19
Dec. 26
MONEY MARKET RATES
1 Federal funds1-2
2 Discount window borrowing1-2-3
Commercial paper4-5
3
1-month
4 3-month
5 6-month
Finance paper, directly placed4-5
1-month
6
7 3-month
8 6-month
Bankers acceptances5-6
9 3-month
10 6-month
Certificates of deposit, secondary market7
11
1-month
12 3-month
13 6-mo nth
14 Eurodollar deposits, 3-month8
U.S. Treasury bills5
Secondary market 9
15
3-month
16
6-month
17
1-year
Auction average10
18
3-month
19
6-month
1-year
20
10.22
8.80
8.10
7.69
6.80
6.33
5.89
5.50
5.85
5.50
6.04
5.50
6.91
5.50
6.00
5.50
6.25
5.50
5.97
5.50
6.30
5.50
6.31
5.50
10.05
10.10
10.16
7.94
7.95
8.01
6.62
6.49
6.39
5.74
5.68
5.61
5.74
5.68
5.61
5.84
5.76
5.69
6.63
6.10
5.88
5.88
5.81
5.72
6.02
5.89
5.75
6.03
5.90
5.77
6.59
6.14
5.92
7.39
6.35
6.05
9.97
9.73
9.65
7.91
7.77
7.75
6.58
6.38
6.31
5.76
5.61
5.54
5.74
5.56
5.50
5.79
5.67
5.58
6.32
5.81
5.74
5.84
5.73
5.60
5.92
5.73
5.64
5.96
5.73
5.65
6.33
5.84
5.74
6.79
5.83
5.82
10.14
10.19
7.92
7.96
6.39
6.29
5.60
5.56
5.58
5.52
5.67
5.59
5.96
5.78
5.71
5.58
5.73
5.60
5.82
5.70
6.02
5.82
6.21
5.94
10.17
10.37
10.68
10.73
7.97
8.05
8.25
8.28
6.61
6.52
6.51
6.71
5.73
5.71
5.71
5.88
5.71
5.69
5.70
5.88
5.80
5.76
5.76
5.96
6.66
6.04
5.95
6.23
5.84
5.76
5.76
5.99
6.03
5.83
5.81
6.04
6.06
5.88
5.85
6.05
6.52
6.08
6.00
6.16
7.58
6.27
6.10
6.50
9.52
9.76
9.92
7.48
7.65
7.81
5.98
6.03
6.08
5.21
5.35
5.45
5.18
5.26
5.41
5.35
5.41
5.48
5.53
5.55
5.55
5.39
5.42
5.45
5.42
5.44
5.47
5.49
5.49
5.51
5.57
5.59
5.57
5.56
5.60
5.59
9.57
9.80
9.91
7.47
7.64
7.76
5.96
6.03
6.07
5.19
5.31
5.33
5.18
5.26
5.44
5.35
5.42
5.45
5.49
5.53
5.60
5.35
5.39
5.45
5.40
5.46
n.a.
5.51
5.50
n.a.
5.55
5.58
n.a.
5.49
5.56
5.60
10.89
11.65
11.89
12.24
12.40
12.44
12.48
12.39
8.43
9.27
9.64
10.13
10.51
10.62
10.97
10.79
6.46
6.87
7.06
7.31
7.55
7.68
7.85
7.80
5.77
6.35
6.62
6.92
7.28
7.45
7.56
7.62
5.72
6.28
6.56
6.83
7.24
7.43
7.61
7.70
5.80
6.28
6.46
6.76
7.08
7.25
7.42
7.52
5.87
6.27
6.43
6.67
6.97
7.11
7.28
7.37
5.77
6.21
6.39
6.66
6.99
7.14
7.31
7.42
5.78
6.21
6.37
6.61
6.93
7.09
7.26
7.35
5.83
6.22
6.38
6.62
6.93
7.09
7.26
7.35
5.90
6.30
6.45
6.68
6.98
7.12
7.29
7.39
5.92
6.30
6.46
6.69
6.96
7.08
7.25
7.35
11.99
10.75
8.14
8.08
8.04
7.81
7.67
7.71
7.64
7.67
7.69
7.61
9.61
10.38
10.10
8.60
9.58
9.11
6.95
7.75
7.32
6.91
7.59
7.11
6.44
7.23
7.08
6.19
7.13
6.85
6.29
7.25
6.87
6.15
7.20
6.74
6.20
7.15
6.77
6.35
7.35
6.94
6.30
7.25
6.92
6.30
7.25
6.83
13.49
12.71
13.31
13.74
14.19
12.05
11.37
11.82
12.28
12.72
9.71
9.02
9.47
9.95
10.39
9.55
8.89
9.36
9.73
10.20
9.54
8.86
9.33
9.72
10.24
9.37
8.68
9.20
9.51
10.07
9.23
8.49
9.02
9.41
9.97
9.28
8.55
9.11
9.43
9.99
9.25
8.52
9.05
9.44
9.99
9.22
8.48
9.02
9.41
9.97
9.23
8.51
9.03
9.41
9.97
9.21
8.47
9.00
9.38
9.98
13.81
12.06
9.61
9.56
9.48
9.31
9.08
9.16
9.08
9.03
9.08
9.07
11.59
4.64
10.49
4.25
8.76
3.48
8.10
3.43
8.17
3.49
8.07
3.40
8.18
3.38
8.13
3.35
8.20
3.29
8.14
3.33
8.22
3.39
8.15
3.40
CAPITAL MARKET RATES
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
U.S. Treasury notes and bonds 11
Constant maturities12
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year 13
Composite
Over 10 years (long-term)
State and local notes and bonds
Moody's series14
Aaa
Baa
Bond Buyer series15
Corporate bonds
Seasoned issues16
All industries
Aaa
Aa
A
Baa
A-rated, recently-offered utility
bonds 17
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 averages for statement week ending Wednesday.
3. Rate for the Federal Reserve Bank of New York.
4. Unweighted average of offering rates quoted by at least five dealers (in the
case of commercial paper), or finance companies (in the case of finance paper).
Before November 1979, maturities for data shown are 30-59 davs, 90-119 days,
and 120-179 days for commercial paper; and 30-59 days, 90—1 IS days, and 150—
179 days for finance paper.
5. Yields are quoted on a bank-discount basis, rather than an investment yield
basis (which would give a higher figure).
6. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
7. Unweighted average of offered rates quoted by at least five dealers early in
the day.
8. Calendar week average. For indication purposes only.
9. Unweighted average of closing bid rates quoted by at least five dealers.
10. Rates are recorded in the 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.
11. Yields are based on closing bid prices quoted by at least five dealers.
12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.
13. Averages (to maturity or call) for all outstanding bonds neither due nor
callable in less than 10 years, including one very low yielding "flower" bond.
14. General obligations based on Thursday figures; 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.
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.
NOTE. These data also appear in the Board's H.15 (519) and G.13 (415) releases.
For address, see inside front cover.
Financial Markets
1.36
STOCK MARKET
A23
Selected Statistics
1986
Indicator
1984
1985
1986
Apr.
May
June
Aug.
July
Oct.
Sept.
Nov.
Dec.
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)' . . .
7 American Stock Exchange 2
(Aug. 31, 1973 = 50)
92.46
108.01
85.63
46.44
89.28
160.50
108.09
123.79
104.11
56.75
114.21
186.84
136.00
155.85
119.85
71.35
147.18
236.34
137.25
157.35
125.92
69.35
154.83
237.97
137.37
158.59
122.21
68.65
151.28
238.46
140.82
163.15
120.65
70.69
151.73
245.30
138.32
158.06
112.03
74.20
150.23
240.18
140.91
160.10
111.24
77.84
152.90
245.00
137.06
156.52
114.06
74.56
145.56
238.27
136.74
156.56
120.04
73.38
143.89
237.36
140.84
162.10
122.27
75.77
142.97
245.09
142.12
163.85
121.26
76.07
144.29
248.61
207.96
229.10
264.38
270.59
274.22
281.18
269.93
268.55
264.30
257.82
265.14
264.65
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
91,084 109,191 141,306 146,330 127,624 126,151 137,709 128,661
6,107
8,355 11,846 13,503 11,870 12,795 10,320
9,885
150,831
10,853
131,155
8,930
154,770
10,513
148,228
12,272
Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers 3
22,470
28,390
36,840
30,760
32,370
32,480
33,170
34,550
34,580
36,310
37,090
36,840
1,755
10,215
2,715
12,840
4,880
19,000
3,065
14,340
2,405
12,970
2,585
13,570
2,570
14,600
3,035
14,210
3,395
14,060
3,805
14,445
3,765
15,045
4,880
19,000
n.a.
n.a.
4
Free credit balances at brokers
11 Margin-account 5
12 Cash-account
Margin-account debt at brokers (percentage distribution, end of period) 6
100.0
14
15
16
17
18
19
By equity class (in percent)1
Under 40
40-49
50-59
60-69
70-79
80 or more
34.0
20.0
19.0
100.0
n.a.
11.0
8.0
8.0
100.0
100.0
29.0
20.0
20.0
13.0
9.0
9.0
100.0
18.0
18.0
16.0
9.0
5.0
6.0
13 Total
30.0
19.0
22.0
12.0
8.0
9.0
31.0
20.0
20.0
13.0
8.0
8.0
n a.
n.a.
n.a.
n.a.
Special miscellaneous-account balances at brokers (end of period) 6
20 Total balances (millions of dollars) 8 . . .
Distribution by equity status
21 Net credit status
Debt status, equity of
22 60 percent or more
23
Less than 60 percent
75,840
105,790
109,620
33.0
99,310
33.0
9.0
112,401
(percent)
58.0
29.0
11.0
59.0
31.0
11.0
8.0
32.0
9.0
Margin requirements (percent of market value and effective date) 9
Mar. 11, 1968
24 Margin stocks
25 Convertible bonds
26 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. Beginning July 1983, under the revised Regulation T, margin credit at
broker-dealers includes credit extended against stocks, convertible bonds, stocks
acquired through exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds,
and subscription issues was discontinued in April 1984, and margin credit at
broker-dealers became the total that is distributed by equity class and shown on
lines 17-22.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
5. New series beginning June 1984.
6. In July 1986, the New York Stock Exchange stopped reporting certain data
items that were previously obtained in a monthly survey of a sample of brokers
and dealers. Data items that are no longer reported include distributions of margin
debt by equity status of the account and special miscellaneous-account
balances.
7. Each customer's equity in his collateral (market value of collateral less net
debit balance) is expressed as a percentage of current collateral values.
8. 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.
9. Regulations G, T, and U of the Federal Reserve Board of Governors,
prescribed in accordance with the Securities Exchange Act of 1934, limit the
amount of credit to purchase and carry margin stocks that may be extended on
securities as collateral by prescribing a maximum loan value, which is a specified
percentage of the market value of the collateral at the time the credit is extended.
Margin requirements are the difference between the market value (100 percent)
and the maximum loan value. The term "margin stocks" is defined in the
corresponding regulation.
A26
1.37
DomesticNonfinancialStatistics • March 1987
SELECTED FINANCIAL INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1986
Account
1983
1984
Feb.
Mar.
Apr.
May
June
July
Aug.'
Sept.'
Oct.'
Nov.
Dec.
Savings and loan associations
1 Assets
773,417
903,488
943,029
947,302
954,869' 963,274' 954,224' 958,029' 965,055
957,319
962,097
964,664
2 Mortgages
3
4 Cash and investment securities1 .
5 Other
494,789
555,277
104,274
174,354
124,801
223,396
576,608
98,482
127,028
239,394
574,732
99,332
131,464
241,104
575,177' 574,992' 565,043' 565,380' 566,474
103,415' 108,324' 113,161' 113,095 113,619
132,352' 134,881' 130,877' 132,789' 138,866
247,339' 253,399' 258,303' 259,858' 259,713
557,152
117,671
138,550
261,616
557,892
120,642
138,680
265,522
556,892
122,486
141,701
266,070
6 Liabilities and net worth
773,417
903,488
943,029
947,302
954,869' 963,274' 954,224' 958,029' 965,055
957,319
962,097
964,664
634,455
92,127
52,626
39,501
15,968
725,045
125,666
64,207
61,459
17,944
747,016
131,671
71,214
60,457
23,125
752,056
133,407
70,464
62,943
20,078
750,299 751,138 744,026' 747,020 749,020
140,427' 145,032' 148,049' 146,579' 148,535
75,594
73,815
73,520
73,553' 75,058
66,612' 71,512' 74,496' 71,521' 72,941
21,978' 24,722' 20,792' 22,856' 24,704
743,519
155,729
80,364
75,365
15,461
742,668
152,667
75,295
77,372
23,372
740,350
156,793
75,511
81,282
24,101
30,867
34,833
41,217
41,760
42,163'
42,382'
41,357'
41,574'
42,796
42,610
43,390
43,421
54,113
61,305
52,542
54,366
55,818
57,997
57,20C
55,687
53,180
51,143
49,879
48,198
180,124' 183,310' 186,812
7 Savings capital
8 Borrowed money
9 FHLBB
10 Other
11 Other
12 Net worth 2
n a.
MEMO
13 Mortgage loan commitments
outstanding 3
FSLIC-insured federal savings banks
14 Assets
64,969
98,559
146,508
152,823
155,686
164,129
57,429
9,949
10,971
81,641
16,367
13,759
85,028
17,851
13,923
86,598'
18,661
14,590
89,108
19,829
15,083
99,758'
21,598'
16,774'
101,759'
23,247'
17,025'
196,244
202,110
205,054
103,020
24,097
17,056
108,229
26,443
18,492
110,387
27,525
18,684
111,966
28,110
19,284
15 Mortgages
16 Mortgage-backed securities....
17 Other
38,698
7,172
6,595
18 Liabilities and net worth
64,969
98,559
146,508
152,823
155,686' 164,129
180,124'
183,310' 186,812
196,244
202,110
205,054
19
7,0
21
7.7
73
24
53,227
7,477
4,640
2,837
1,157
3,108
79,572
12,798
7,515
5,283
1,903
4,286
114,743
21,254
11,283
9,971
3,397
7,114
119,434
22,747
12,064
10,683
3,291
7,349
121,133
23,196
12,476
10,720
3,758
7,599
126,123
25,686
12,830
12,856
4,338
7,982
138,168
28,502
15,301
13,201
4,279
9,175'
140,610
28,722
15,866
12,856
4,555
9,424
142,858
29,390
16,123
13,267
4,918
9,647
149,705
32,319
16,853
15,466
4,670
10,181
152,834
33,430
17,382
16,048
5,325
10,522
154,393
33,954
17,863
16,091
5,842
10,867
2,151
3,234
7,718
8,330
8,287
8,762
9,410
10,134
9,770
10,216
9,358
9,970
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
n a.
MEMO
25 Mortgage loan commitments
outstanding3
Savings banks
193,535
203,898
218,119
221,256
222,542
226,495
223,367
224,569
227,011
228,854
230,919
97,356
19,129
102,895
24,954
109,702
32,501
110,271
34,873
111,813
34,591
112,417
35,500
110,958
36,692
111,971
36,421
113,265
37,350
114,188
37,298
116,648
36,130
15,360
18,205
2,177
25,375
6,263
9,670
14,643
19,215
2,077
23,747
4,954
11,413
12,474
21,525
2,297
20,707
5,646
13,267
12,313
21,593
2,306
20,403
5,845
13,652
12,013
21,885
2,372
20,439
5,570
13,859
13,210
22,546
2,343
20,260
6,225
13,994
12,115
22,413
2,281
2,036
5,301
13,244
12,297
22,954
2,309
20,862
4,651
13,104
12,043
21,161
2,400
20,602
5,018
13,172
12,357
23,216
2,407
20,902
4,811
13,675
12,585
23,437
2,347
21,156
5,195
13,421
35 Liabilities
193,535
203,898
218,119
221,256
222,542
226,495
223,367
224,569
227,011
228,854
230,919
36 Deposits
37 Regular4
Ordinary savings
38
39
Time
Other
40
41 Other liabilities
42 General reserve accounts
172,665
170,135
38,554
95,129
2,530
10,154
10,368
180,616
177,418
33,739
104,732
3,198
12,504
10,510
186,777
182,890
32,693
104,588
3,887
17,793
13,211
188,960
184,704
33,021
105,562
4,256
18,412
13,548
189,025
184,580
33,057
105,550
4,445
19,074
14,114
190,310
185,716
33,577
105,146
4,594
21,384
14,519
189,109
183,970
34,008
103,083
5,139
19,226
14,731
188,615
183,433
34,166
102,374
5,182
20,641
15,084
189,937
184,764
34,530
102,668
5,173
21,360
15,427
190,210
185,002
35,227
102,191
5,208
21,947
16,319
190,334
185,254
36,165
101,125
5,080
23,319
16,896
26 Assets
27
28
29
30
31
37
33
34
Loans
Mortgage
Other
Securities
U.S. government
Mortgage-backed securities...
State and local government...
Corporate and other
Cash
Other assets
n a.
n .a.
Financial Markets A23
1.37—Continued
1986
Account
1983
1984
Feb.
Mar.
Apr.
May
July
June
Aug/
Sept/
Oct/
Nov.
Dec.
Credit unions 5
43 Total assets/liabilities and capital .
44
45
Federal
State
46 Loans outstanding
Federal
47
48
State
49 Savings
Federal
50
51
State
81,961
93,036
122,623
126,653
128,229
132,415
134,703
137,901
139,233
140,496
143,662
145,653
54,482
27,479
63,205
29,831
80,024
42,599
82,275
44,378
83,543
44,686
86,289
46,126
87,579
47,124
89,539
48,362
90,367
48,866
91,981
48,515
93,257
50,405
94,638
51,015
50,083
32,930
17,153
74,739
49,889
24,850
62,561
42,337
20,224
84,348
57,539
26,809
74,207
48,059
26,148
110,541
73,227
37,314
75,300
48,633
26,667
114,579
75,698
38,881
76,385
49,756
26,629
116,703
77,112
39,591
76,774
49,950
26,824
120,331
79,479
40,852
77,847
50,613
27,234
122,952
80,975
41,977
79,647
51,331
28,316
125,331
82,596
42,735
80,656
52,007
28,649
126,268
83,132
43,136
81,820
53,042
28,778
128,125
84,607
43,518
83,388
53,434
29,954
130,483
86,158
44,325
84,635
53,877
30,758
131,778
87,009
44,769
n a.
n a.
n a.
n a.
Life insurance companies
52 Assets
53
54
55
56
57
58
59
60
61
62
63
Securities
Government
United States 6
State and local
Foreign 7
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
654,948 722,979
839,856
848,535
855,605
863,610
872,359
877,919
887,255
892,304
50,752 63,899
28,636 42,204
8,713
9,986
12,130 12,982
322,854 359,333
257,986 295,998
64,868 63,335
150,999 156,699
22,234 25,767
54,063 54,505
54,046 63,776
76,761
53,264
9,588
13,909
435,758
354,911
80,847
172,997
29,356
54,267
57,351
77,965
54,289
9,674
14,002
440,963
357,196
83,767
174,823
29,804
54,273
57,753
78,494
54,705
9,869
13,920
445,573
361,306
84,267
175,951
30,059
54,272
57,492
79,051
55,120
9,930
14,001
450,279
364,122
86,157
177,554
30,025
54,351
57,802
78,284
54,197
10,114
13,973
455,119
367,966
87,153
180,041
30,350
57,342
58,290
78,722
54,321
10,350
14,051
455,013
369,704
85,309
182,542
31,151
54,249
58,792
79,188
54,487
10,472
14,229
463,135
374,670
88,465
183,943
31,844
54,247
57,905
81,636
56,698
10,606
14,332
462,540
378,267
84,273
185,268
31,725
54,273
58,086
1. Holdings of stock of the Federal Home Loan Banks are in "other assets."
2. Includes net undistributed income accrued by most associations.
3. As of July 1985, data include loans in process.
4. Excludes checking, club, and school accounts.
5. Data include all federally insured credit unions, both federal and state
chartered, serving natural persons.
6. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
7. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
NOTE. Savings and loan associations: Estimates by the FHLBB for all
associations in the United States based on annual benchmarks for non-FSLICinsured associations and the experience of FSLIC-insured associations.
FSLIC-insured federal savings banks: Estimates by the FHLBB for federal
savings banks insured by the FSL1C and based on monthly reports of federally
insured institutions.
Savings banks: Estimates by the National Council of Savings Institutions for all
savings banks in the United States and for FDIC-insured savings banks that have
converted to federal savings banks.
Credit unions: Estimates by the National Credit Union Administration for
federally chartered and federally insured state-chartered credit unions serving
natural persons.
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."
A28
1.38
DomesticNonfinancialStatistics • March 1987
FEDERAL FISCAL A N D FINANCING
OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1984
Fiscal
year
1985
Fiscal
year
1986
1986
July
U.S. budget1
1 Receipts, total
2 On-budget
3 Off-budget
4 Outlays, total
5 On-budget
6 Off-budget
7 Surplus, or deficit ( - ) , total
8 On-budget
9 Off-budget
Source of financing (total)
Borrowing from the public
Cash and monetary assets (decrease, or
increase (-)) 2
12 Other3
10
11
Aug.
769,091
568,862
200,228
989,789
806,291
183,498
-220,698
-237,428
16,371
62,974
47,571
15,402
85,203
69,604
15,599
-22,229
-22,033
-1%
56,523
41,404
15,119
84,434
68,112
16,322
-27,911
-26,708
-1,203
Sept.
Oct.
Nov.
Dec.
59,012
43,865
15,147
84,267
68,780
15,486
-25,255
-24,915
-340
52,%7
38,158
14,809
79,973
63,639
16,334
-27,006
-25,481
-1,524
78,035
60,694
17,341
90,112
75,623
14,489
-12,077
-14,930
2,853
666,457
n.a.
n.a.
851,7%
n.a.
n.a.
-185,339
n.a.
n.a.
734,057
547,886
186,170
945,987
769,180
176,807
-211,931
-221,294
9,363
170,817
197,269
235,745
14,980
20,278
22,188
5,936
40,352
22,824
5,636
8,885
10,673
3,989
-18,044
2,997
3,972
3,277
10,298
-2,665
-21,313
2,862
18,131
1,188
-2,721
-10,625
-14,751
4,004
22,345
3,791
18,553
17,060
4,174
12,886
31,384
7,514
23,870
20,810
3,983
16,827
10,428
1,106
9,322
31,384
7,514
23,870
13,616
2,491
11,126
17,007
2,529
14,478
30,945
7,588
23,357
78,013
59,978
18,035
81,750
65,614
16,136
-3,737
-5,636
1,898
MEMO
13 Treasury operating balance (level, end of
period)
14 Federal Reserve Banks
15 Tax and loan accounts
1. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. The Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the FFB to finance their programs. The act has also moved two
social security trust funds (Federal old-age survivors insurance and Federal
disability insurance trust funds) off-budget.
2. Includes U.S. Treasury operating cash accounts; SDRs; reserve position on
the U.S. quota in the IMF; loans to International Monetary Fund; and other cash
and monetary assets.
3. Includes accrued interest payable to the public; allocations of special
drawing rights; deposit funds; miscellaneous liability (including checks outstanding) and asset accounts; seigniorage; increment on gold; net gain/loss for U.S.
currency valuation adjustment; net gain/loss for IMF valuation adjustment; and
profit on the sale of gold.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government," and the "Daily Treasury Statement."
Federal Finance
1.39
A29
U.S. BUDGET RECEIPTS A N D OUTLAYS
Millions of dollars
Calendar year
Source or type
Fiscal
year
1985
Fiscal
year
1986
1985
HI
1986
H2
1986
HI
H2
Oct.
Nov.
Dec.
RECEIPTS
734,057
769,091
380,618
364,790
394,345
387,524
59,012
52,967
78,035
334,560
298,941
35
101,328
65,743
348,959
314,803
36
105,994
71,873
166,783
149,288
29
76,155
58,684
169,987
155,725
6
22,295
8,038
169,444
153,919
31
78,981
63,488
183,156
164,071
4
27,733
8,652
31,123
29,556
0
3,122
1,554
24,122
24,242
0
1,143
1,263
33,584
30,733
0
3,585
734
77,413
16,082
80,442
17,298
42,193
8,370
36,528
7,751
41,946
9,557
42,108
8,230
3,219
2,679
2,716
968
16,531
839
265,163
283,901
144,598
128,017
156,714
134,006
21,179
21,751
22,267
234,646
255,062
126,038
116,276
139,706
122,246
19,583
19,015
21,625
10,468
25,758
4,759
11,840
24,098
4,741
9,482
16,213
2,350
985
9,281
2,458
10,581
14,674
2,333
1,338
9,328
2,429
0
1,135
459
223
2,377
360
0
196
446
35,992
12,079
6,422
18,510
32,919
13,323
6,958
19,887
17,259
5,807
3,204
9,144
18,470
6,354
3,323
9,861
15,944
6,369
3,487
10,002
15,947
7,282
3,649
9,605
2,708
1,281
647
1,534
2,488
1,090
488
1,279
3,003
1,098
695
1,696
18 All types
946,223
989,789
463,842
487,188
486,037
505,739
84,267
79,973
90,112
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology . . .
Energy
Natural resources and environment
Agriculture
252,748
16,176
8,627
5,685
13,357
25,565
273,369
14,471
9,017
4,792
13,508
31,169
124,186
6,675
4,230
680
5,892
11,705
134,675
8,367
4,727
3,305
7,553
15,412
135,367
5,384
12,519
2,484
6,245
14,482
138,544
8,750
4,594
2,735
7,141
16,160
23,177
1,259
794
405
1,200
3,573
20,907
1,986
708
553
973
3,162
24,401
1,014
843
485
1,253
3,751
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development . . . .
Education, training, employment, social
services
4,229
25,838
7,680
4,258
28,058
7,510
-260
11,440
3,408
644
15,360
3,901
860
12,658
3,169
3,647
14,745
3,494
593
2,107
735
182
2,399
478
-314
2,409
548
1 All sources
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 Employment taxes and
contributions'
11 Self-employment 2
taxes and
contributions
12 Unemployment insurance
13 Other net receipts 3
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 4
OUTLAYS
29,342
29,662
14,149
14,481
14,712
15,268
2,332
2,504
2,896
29 Health
30 Social security and medicare
31 Income security
33,542
254,446
128,200
35,936
190,850
120,686
16,945
128,351
65,246
17,237
129,037
59,457
17,872
135,214
60,786
19,814
138,296
59,628
4,266
23,700
9,367
3,153
22,182
9,130
3,032
23,378
11,625
32
33
34
35
36
37
26,352
6,277
5,228
6,353
129,436'
-32,759
26,614
6,555
6,796
6,430
135,284
-33,244
11,956
3,016
2,857
2,659
65,143
-14,436
14,527
3,212
3,634
3,391
67,448
-17,953
12,193
3,352
3,566
2,179
68,054
-17,193
14,497
3,360
2,786
2,767
66,770
-17,426
3,491
539
209
284
9,951
-3,719
797
505
371
-2
12,441
-2,455
3,641
684
895
226
11,912
-2,694
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Net interest'
Undistributed offsetting receipts 6
1. Old-age, disability, and hospital insurance, and railroad retirement accounts.
2. Old-age, disability, and hospital insurance.
3. Federal employee retirement contributions and civil service retirement and
disability fund.
4. Deposits of earnings by Federal Reserve Banks and other miscellaneous
receipts.
5. Net interest function includes interest received by trust funds.
6. 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 1987.
A30
1.40
DomesticNonfinancialStatistics • March 1987
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1985
1984
1986
Item
Sept. 30
5 Agency securities
6 Held by public
7 Held by agencies
8 Debt subject to statutory limit
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
1,576.7
1,667.4
1,715.1
1,779.0
1,827.5
1,950.3
1,991.1
2,063.6
2,129.5
1,663.0
1,373.4
289.6
1,710.7
1,415.2
295.5
1,774.6
1,460.5
314.2
1,823.1
1,506.6
316.5
1,945.9
1,597.1
348.9
1,986.8
1,634.3
352.6
2,059.3
1,684.9
374.4
2,125.3
1,742.4
382.9
4.5
3.4
1.1
2 Public debt securities
3 Held by public
4 Held by agencies
Mar. 31
1,572.3
1,309.2
263.1
1 Federal debt outstanding
Dec. 31
4.5
3.4
1.1
4.4
3.3
1.1
4.4
3.3
1.1
4.4
3.3
1.1
4.4
3.3
1.1
4.3
3.2
1.1
4.3
3.2
1.1
4.2
3.2
1.1
1,573.0
1,663.7
1,711.4
1,775.3
1,823.8
1,932.4
1,973.3
2,060.0
2,111.0
1,931.1
1.3
1,972.0
1.3
2,058.7
1.3
2,109.7
1.3
2,078.7
2,078.7
2,078.7
2,111.0
9 Public debt securities
10 Other debt 1
1,571.7
1.3
1,662.4
1.3
1,710.1
1.3
1,774.0
1.3
1,822.5
1.3
11 MEMO: Statutory debt limit
1,573.0
1,823.8
1,823.8
1,823.8
1,823.8
1. Includes guaranteed debt of government agencies, specified participation
certificates, notes to international lending organizations, and District of Columbia
stadium bonds.
1.41
GROSS PUBLIC DEBT OF U.S. TREASURY
Sept. 30
NOTE. Data from Treasury Bulletin and Daily Treasury Statement
Treasury Department),
(U.S.
Types and Ownership
Billions of dollars, end of period
1985
Type and holder
1983
1982
1986
1984
Q4
1 Total gross public debt
7
3
4
5
6
7
8
9
10
II
17
13
By type
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable 1
State and local government series
Foreign issues2
Government
Public
Savings bonds and notes
Government account series3
14 Non-interest-bearing debt
15
16
17
18
19
70
21
22
73
74
75
26
By holder4
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Money market funds
Insurance companies
Other companies
State and local governments
Individuals
Savings bonds
Other securities
Foreign and international 5
Other miscellaneous investors 6
Q2
Q3
1,197.1
1,410.7
1,663.0
1,945.9
1,945.9
1,986.8
2,059.3
2,125.3
1,195.5
881.5
311.8
465.0
104.6
314.0
25.7
14.7
13.0
1.7
68.0
205.4
1,400.9
1,050.9
343.8
573.4
133.7
350.0
36.7
10.4
10.4
.0
70.7
231.9
1,660.6
1,247.4
374.4
705.1
167.9
413.2
44.4
9.1
9.1
.0
73.1
286.2
1,943.4
1,437.7
399.9
812.5
211.1
505.7
87.5
7.5
7.5
.0
78.1
332.2
1,943.4
1,437.7
399.9
812.5
211.1
505.7
87.5
7.5
7.5
.0
78.1
332.2
1,984.2
1,472.8
393.2
842.5
223.0
511.4
88.5
6.7
6.7
.0
79.8
336.0
2,056.7
1,498.2
396.9
869.3
232.3
558.5
98.2
5.3
5.3
.0
82.3
372.3
2,122.7
1,564.3
410.7
896.9
241.7
558.4
102.4
4.1
4.1
.0
85.6
365.9
1.6
9.8
2.3
2.5
2.5
2.6
2.6
.4
209.4
139.3
848.4
131.4
42.6
39.1
24.5
127.8
236.3
151.9
1,022.6
188.8
22.8
56.7
39.7
155.1
289.6
160.9
1,212.5
183.4
25.9
76.4
50.1
179.4
348.9
181.3
1,417.2
192.2
25.1
93.2
59.0
n.a.
348.9
181.3
1,417.2
192.2
25.1
93.2
59.0
n.a.
352.6
184.8
1,473.1
195.1
29.9
95.8
59.6
n.a.
374.4
183.8
1,502.7
197.2
22.8
n.a.
59.8
n.a.
382.9
190.8
1,553.3
212.5
24.9
n.a.
67.0
n.a.
68.3
48.2
149.5
217.0
71.5
61.9
166.3
259.8
74.5
69.3
192.9
360.6
79.8
75.0
214.6
n.a.
79.8
75.0
214.6
n.a.
81.4
76.2
225.4
n.a.
83.8
73.9
239.8
n.a.
87.1
69.0
256.3
n.a.
1. Includes (not shown separately): Securities issued to the Rural Electrification Administration; depository bonds, retirement plan bonds, and individual
retirement bonds.
2. Nonmarketable dollar-denominated and foreign currency-denominated series held by foreigners.
3. Held almost entirely by U.S. government agencies and trust funds.
4. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.
Ql
5. Consists of investments offoreign and international accounts. Excludes noninterest-bearing notes issued to the International Monetary Fund.
6. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. government deposit accounts, and U.S. government-sponsored agencies.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly
Statement of the Public Debt of the United States; data by holder. Treasury
Bulletin.
Federal Finance
1.42
U.S. GOVERNMENT SECURITIES DEALERS
A31
Transactions'
Par value; averages of daily figures, in millions of dollars
1986 week ending Wednesday
1986
Item
1983
1984
1985
Oct.
1
2
3
4
6
7
8
9
10
11
12
13
14
15
16
17
18
Nov.
Dec.
Nov. 26
Dec. 3
Dec. 10 Dec. 17 Dec. 24 Dec. 31
Immediate delivery2
U.S. government securities
42,135
52,778
75,331
93,308
96,844
88,557
100,142
89,988
107,541
90,993
76,232
64,519
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
22,393
708
8,758
5,279
4,997
26,035
1,305
11,733
7,606
6,099
32,900
1,811
18,361
12,703
9,556
32,634
2,221
25,480
21,186
11,787
32,218
2,122
25,954
20,976
15,574
33,095
2,348
21,989
19,388
11,737
30,424
2,112
27,730
24,941
14,935
29,433
2,407
19,536
23,635
14,978
37,931
1,874
24,662
28,038
15,037
32,414
2,214
25,479
18,433
12,453
30,491
2,733
21,449
12,117
9,442
31,053
2,095
13,872
11,963
5,536
By type of customer
U.S. government securities
dealers
U.S. government securities
brokers
All others 3
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures transactions 4
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions 5
U.S. government securities
Federal agency securities
2,257
2,919
3,336
3,905
3,902
3,306
3,346
4,764
4,490
3,762
2,457
2,199
21,045
18,833
5,576
4,333
2,642
8,036
25,580
24,278
7,846
4,947
3,243
10,018
36,222
35,773
11,640
4,016
3,242
12,717
49,366
40,037
18,302
4,372
3,348
17,078
50,707
42,235
20,111
3,861
2,859
16,705
44,553
40,698
20,158
3,686
2,478
16,565
51,757
45,040
23,840
4,990
2,873
17,997
44,207
41,017
17,606
3,802
3,163
15,758
57,156
45,896
21,053
4,069
2,930
16,111
45,922
41,310
26,342
3,686
2,230
15,786
36,989
36,787
19,184
3,870
2,141
18,133
29,723
32,597
11,530
2,740
1,677
14,381
6,655
2,501
265
6,947
4,503
262
5,561
6,069
240
1,754
5,416
0
2,801
6,387
11
1,894
5,519
0
2,682
6,570
36
1,533
6,905
2
2,618
6,958
0
2,837
6,413
0
863
3,435
1,272
3,021
1
1,493
1,646
1,364
2,843
1,283
3,857
1,731
8,450
2,403
10,258
2,066
9,928
1,367
11,579
975
7,809
726
11,222
3,634
13,727
3,058
9,790
1,314
4,276
1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers.
Averages for transactions are based on the number of trading days in the period.
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.
2. Data for immediate transactions do not include forward transactions.
3. 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.
4. 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.
5. Forward transactions are agreements arranged in the over-the-counter
market in which securities are purchased (sold) for delivery after 5 business days
from the date of the transaction for government securities (Treasury bills, notes,
and bonds) or after 30 days for mortgage-backed agency issues.
NOTE. Data for the period May 1 to Sept. 30, 1986, are partially estimated.
A32
1.43
DomesticNonfinancialStatistics • March 1987
U.S. GOVERNMENT SECURITIES DEALERS
Positions and Financing1
Averages of daily figures, in millions of dollars
1986
1986 week ending Wednesday
Item
Nov.
Oct.
Dec.
Dec. 3
Dec. 10
Dec. 17
Dec. 24
Dec. 31
Positions
1
?
3
4
6
7
8
9
10
11
12
13
14
15
Net immediate2
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
14,082
10,800
921
1,912
-78
528
7,313
5,838
3,332
3,159
5,429
5,500
63
2,159
-1,119
-1,174
15,294
7,369
3,874
3,788
7,391
10,075
1,050
5,154
-6,202
-2,686
22,860
9,192
4,586
5,570
8,297
11,060
2,704
9,676
-11,127
-4,017
29,066
9,511
5,897
8,302
14,368
14,967
2,030
8,419
-8,131
-2,916
30,257
9,956
5,244
9,630
10,213
10,975
2,968
6,814
-6,975
-3,568
34,680
10,049
5,072
9,789
16,483
15,666
2,549
7,114
-5,596
-3,250
30,704
11,050
5,137
9,693
12,962
12,479
3,075
7,414
-6,853
-3,153
32,252
11,301
5,868
9,076
6,435
9,373
2,851
4,585
-6,892
-3,481
36,521
9,469
4,905
10,395
8,156
8,868
3,146
7,044
-7,287
-3,616
37,689
9,291
4,697
9,673
8,778
9,681
2,974
8,279
-7,702
-4,454
34,575
9,440
4,703
10,065
-4,125
-1,033
171
-4,525
1,794
233
-7,322
4,465
-722
-15,845
3,424
-70
-15,972
4,022
-82
-16,170
3,360
-89
-17,634
3,778
-85
-18,159
3,123
-89
-16,316
3,298
-89
-14,533
2,878
-91
-14,305
4,254
-90
-1,936
-3,561
-1,643
-9,205
-911
-9,420
-122
-11,322
-781
-14,622
-2,099
-17,062
-287
-15,220
-1,521
-15,842
-2,464
-19,849
-2,750
-19,101
-2,762
-14,458
Financing3
Reverse repurchase agreements 4
Overnight and continuing
Term agreements
Repurchase agreements5
18 Overnight and continuing
19 Term agreements
16
17
29,099
52,493
44,078
68,357
68,035
80,509
115,847
110,294
108,790
117,299
109,241
123,297
111,701
113,426
115,124
115,600
117,984
120,403
100,519
132,610
101,861
130,498
57,946
44,410
75,717
57,047
101,410
70,076
150,662
108,375
146,960
115,968
149,315
120,500
159,998
102,718
161,115
105,670
163,962
105,778
127,007
147,723
138,766
133,497
1. Data for dealer positions and sources of financing are obtained from reports
submitted to the Federal Reserve Bank of New York by the U.S. government
securities dealers on its published list of primary dealers.
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 net amounts and are shown
on a commitment basis. Data for financing are in terms of actual amounts
borrowed or lent and are based on Wednesday figures.
2. 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. Immediate positions include
reverses to maturity, which are securities that were sold after having been
obtained under reverse repurchase agreements that mature on the same day as the
securities. Data for immediate positions do not include forward positions.
3. Figures cover financing involving U.S. government and federal agency
securities, negotiable CDs, bankers acceptances, and commercial paper.
4. 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.
5. Includes both repurchase agreements undertaken to finance positions and
"matched book" repurchase agreements.
NOTE. Data on positions for the period May 1 to Sept. 30, 1986, are partially
estimated.
Federal Finance
1.44
FEDERAL A N D FEDERALLY SPONSORED CREDIT AGENCIES
A33
Debt Outstanding
Millions of dollars, end of period
1986
Agency
1983
1984
1985
June
1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department 1
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 Association8
Aug.
Sept.
Oct.
Nov.
240,068
271,220
293,905
296,226
298,361
299,211
302,411
305,011
n.a.
33,940
243
14,853
194
35,145
142
15,882
133
36,390
71
15,678
115
35,826
48
14,953
115
35,768
45
14,953
115
36,132
40
14,953
115
36,473
37
14,274
117
36,716
36
14,274
123
36,952
35
14,274
124
2,165
1,404
14,970
111
2,165
1,337
15,435
51
2,165
1,940
16,347
74
2,165
1,854
16,617
74
2,165
1,854
16,562
74
2,165
1,854
16,931
74
2,165
3,104
16,702
74
2,165
3,104
16,940
74
2,165
3,104
17,176
74
206,128
48,930
6,793
74,594
72,816
3,402
236,075
65,085
10,270
83,720
71,193
5,745
257,515
74,447
11,926
93,896
68,851
8,395
260,400
81,558
12,276
92,562
63,585
10,419
262,593
83,081
12,818
93,417
62,857
10,420
263,079
85,997
12,801
92,286
61,575
10,420
265,938
87,133
13,548
91,629
63,073
10,555
268,295
87,146
14,007
93,272
63,079
10,791
n.a.
86,891
n.a.
93,477
62,693
11,102
135,791
145,217
153,373
155,222
155,526
156,132
156,873
157,371
157,452
14,789
1,154
5,000
13,245
111
15,852
1,087
5,000
13,710
51
15,670
1,690
5,000
14,622
74
14,947
1,604
5,000
14,942
74
14,947
1,604
5,000
14,937
74
14,947
1,604
5,000
15,306
74
14,268
2,854
4,970
15,077
74
14,268
2,854
4,970
15,515
74
14,268
2,854
4,970
15,751
74
55,266
19,766
26,460
58,971
20,693
29,853
64,234
20,654
31,429
64,924
21,255
32,476
65,174
21,321
32,469
65,274
21,398
32,529
65,374
21,460
32,796
65,374
21,506
32,810
65,374
21,531
32,630
MEMO
16 Federal Financing Bank debt
July
Lending to federal and federally sponsored
17
18
19
20
21
Export-Import Bank3
Postal Service6
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.
7. Includes outstanding noncontingent liabilities: Notes, bonds, and debentures. Some data are estimated.
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.
A34
1.45
DomesticNonfinancialStatistics • March 1987
NEW SECURITY ISSUES Tax-Exempt State and Local Governments
Millions of dollars
1986
Type of issue or issuer,
or use
1983
1984
1985
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
1 All issues, new and refunding 1
86,421
106,641
214,189
12,578
13,215
12,611
19,833
25,965
4,532
8,825
10,085
Type of issue
2 General obligation
3 Revenue
21,566
64,855
26,485
80,156
52,622
161,567
5,459
7,120
7,115
6,100
6,326
6,285
6,531
13,302
5,931
20,034
1,267
3,265
2,104
6,721
1,427
8,658
Type of issuer
4 State
5 Special district and statutory authority2
6 Municipalities, counties, townships
7,140
51,297
27,984
9,129
63,550
33,962
13,004
134,363
66,822
1,956
7,350
3,273
2,825
6,427
3,962
1,705
6,351
4,554
2,879
10,589
6,365
2,121
15,714
8,125
9
3,275
1,248
697
5,757
2,371
111
7,761
2,213
7 Issues for new capital, total
72,441
94,050
156,050
6,938
7,155
8,178
13,165
17,810
2,558
3,789
4,085
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
8,099
4,387
13,588
26,910
7,821
11,637
7,553
7,552
17,844
29,928
15,415
15,758
16,658
12,070
26,852
63,181
12,892
24,398
1,706
815
4,554
579
313
4,610
1,827
273
3,450
1,424
264
5,978
1,694
947
1,583
1,518
255
6,614
2,800
3,164
4,425
1,186
975
7,281
2,926
1,460
6,292
2,554
489
12,245
558
827
1,365
812
138
832
928
1,195
2,396
2,098
499
1,708
1,486
976
3,239
2,635
331
1,418
8
9
10
11
12
13
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts beginning April 1986.
SOURCES. Securities Data Company beginning April 1986. Public Securities
Association for earlier data. This new data source began with the November
BULLETIN.
1.46
NEW SECURITY ISSUES Corporations
Millions of dollars
Type of issue or issuer,
or use
1986
1983
1984
1985
Apr.
1 All issues1
May
June
July
Aug.
Sept.
Oct/
Nov.
119,949
132,531
201,269
33,489
19,564
25,776
21,093
24,245
16,093
28,506
29,829
2 Bonds2
68,370
109,903
165,754
27,883
13,050
20,756
16,766
18,481
12,830
23,400
23,600
Type of offering
3 Public
4 Private placement
47,244
21,126
73,579
36,324
119,559
46,195
27,883
n.a.
13,050
n.a.
20,756
n.a.
16,766
n.a.
18,481
n.a.
12,830
n.a.
23,400
n.a.
23,600
n.a.
17,001
7,540
3,833
9,125
3,642
27,227
24,607
13,726
4,694
10,679
2,997
53,199
52,228
15,215
5,743
12,957
10,456
69,157
7,975
2,640
614
3,330
3,115
10,210
3,939
1,776
427
1,709
712
4,487
5,368
2,206
250
1,948
810
10,174
2,535
3,410
497
1,470
465
8,389
4,536
1,045
550
2,098
1,615
8,638
2,345
1,405
375
1,915
417
6,373
2,055
1,092
170
2,537
1,255
16,185
3,378
1,183
0
2,587
1,158
15,295
11 Stocks3
51,579
22,628
35,515
5,606
6,514
5,020
4,327
5,764
3,263
5,106
6,229
Type
12 Preferred
13 Common
7,213
44,366
4,118
18,510
6,505
29,010
751
4,855
856
5,658
1,284
3,736
726
3,601
1,290
4,474
402
2,861
817
4,289
1,347
4,882
14,135
13,112
2,729
5,001
1,822
14,780
4,054
6,277
589
1,624
419
9,665
5,700
9,149
1,544
1,966
978
16,178
1,434
910
158
165
27
2,912
1,827
953
372
346
74
2,942
1,132
421
154
406
140
2,767
746
917
179
305
107
2,073
982
803
57
208
379
3,335
250
1,009
28
174
0
1,802
570
1,271
511
410
59
2,285
2,251
587
15
185
104
3,087
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. Monthly data include only public offerings.
3. Beginning in August 1981, gross stock offerings include new equity volume
from swaps of debt for equity.
SOURCES. IDD Information Services, Inc., Securities and Exchange Commission and the Board of Governors of the Federal Reserve System.
Securities
1.47
O P E N - E N D INVESTMENT COMPANIES
Market
and
Corporate
Finance
A35
Net Sales and Asset Position
Millions of dollars
1986
Item
1984
1985
Apr.
May
June
July
Aug.
Sept.
Oct/
Nov.
INVESTMENT COMPANIES 1
1 Sales of own shares 2
2 Redemptions of own shares 3
3 Net sales
107,480
77,032
30,448
222,670
132,440
90,230
37,656
21,699
15,957
31,251
16,706
14,545
30,619
18,921
11,698
35,684
21,508
14,176
32,636
20,102
12,534
34,690
21,338
13,352
37,150
20,782
16,368
33,221
20,734
12,487
4 Assets 4
5
Cash position5
6
Other
137,126
12,181
124,945
251,695
20,607
231,088
329,684
29,599
300,085
343,926
28,184
315,742
356,040
28,083
327,957
360,050
28,080
331,970
387,547
28,682
358,865
381,872
29,540
352,332
402,644
30,826
371,818
416,969
29,395
387,574
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.
1984
Account
1983
1984
1985
1986
1985
Q4
Ql
Q2
Q3
Q4
Ql
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
213.7
207.6
77.2
130.4
71.5
58.8
264.7
235.7
95.4
140.3
78.3
62.0
280.6
223.1
91.8
131.4
81.6
49.8
265.0
221.9
87.8
134.1
80.1
54.0
266.4
213.8
87.8
126.0
80.9
45.1
274.3
213.8
87.1
126.7
81.4
45.3
296.3
229.2
95.8
133.4
81.6
51.8
285.6
235.8
96.4
139.4
82.5
57.0
296.4
222.5
95.7
126.9
85.2
41.7
293.1
227.7
99.0
128.8
87.5
41.2
302.0
240.4
104.4
135.9
88.8
47.2
7 Inventory valuation
8 Capital consumption adjustment
-10.9
17.0
-5.5
34.5
-.6
58.1
-1.6
44.7
-.5
53.2
1.6
58.9
6.1
61.0
-9.4
59.2
16.5
57.3
10.6
54.8
6.1
55.5
SOURCE. Survey of Current Business (Department of Commerce).
A36
1.49
DomesticNonfinancialStatistics • March 1987
NONFINANCIAL CORPORATIONS
Assets and Liabilities
Billions of dollars, except for ratio
1985
Account
1980
1981
1982
1983
1986
1984
Q1
Q2
Q3
Q4
Q1
1,328.3
1,419.6
1,437.1
1,575.9
1,703.0
1,722.7
1,734.6
1,763.0
1,784.6
1,795.7
127.0
18.7
507.5
543.0
132.1
135.6
17.7
532.5
584.0
149.7
147.8
23.0
517.4
579.0
169.8
171.8
31.0
583.0
603.4
186.7
173.6
36.2
633.1
656.9
203.2
167.5
35.7
650.3
665.7
203.5
167.1
35.4
654.1
666.7
211.2
176.3
32.6
661.0
675.0
218.0
189.2
33.0
671.5
666.0
224.9
195.3
31.0
663.4
679.6
226.3
7 Current liabilities
890.6
971.3
986.0
1,059.6
1,163.6
1,174.1
1,182.9
1,211.9
1,233.6
1,222.3
8 Notes and accounts payable
9 Other
514.4
376.2
547.1
424.1
550.7
435.3
595.7
463.9
647.8
515.8
636.9
537.1
651.7
531.2
670.4
541.5
682.7
550.9
668.4
553.9
10 Net working capital
437.8
448.3
451.1
516.3
539.5
548.6
551.7
551.1
551.0
573.4
11 MEMO: Current ratio 1
1.492
1.462
1.458
1.487
1.464
1.467
1.466
1.455
1.447
1.469
1 Current assets
2
3
4
5
6
Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other
Statistics, Board of Governors of the Federal Reserve System, Washington, D.C.
1. Ratio of toted current assets to total current liabilities.
NOTE. For a description of this series, see "Working Capital of Nonfinancial
20551.
SOURCE. Federal Trade Commission and Bureau of the Census.
C o r p o r a t i o n s " in t h e J u l y 1978 BULLETIN, p p . 5 3 3 - 3 7 .
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
1.50
TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment •
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1986
1985
Industry
1984
1985
Q2
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5 Railroad
6
Air
7 Other
Public utilities
8
Electric
9 Gas and other
10 Commercial and other 2
Q3
Q4
Q1
Q2
Q3
Q41
Ql'
354.44
387.13
380.69
387.86
389.23
397.88
377.94
375.92
374.55
394.34
386.82
66.24
72.58
73.27
80.21
69.%
74.81
74.34
79.91
72.99
81.48
75.47
82.79
68.01
76.02
68.33
73.35
69.31
69.89
74.17
80.00
67.86
73.36
16.86
15.88
11.24
16.56
15.89
15.25
12.99
11.22
10.15
10.62
10.36
6.79
3.56
6.17
7.08
4.79
6.15
6.72
6.04
5.87
7.38
3.71
6.35
7.79
5.17
5.85
6.74
6.07
6.34
6.22
6.58
5.42
6.77
5.77
5.74
7.31
5.69
6.03
6.60
6.12
6.30
6.37
7.22
6.26
37.03
10.44
134.75
36.11
12.71
150.93
33.%
12.57
159.50
36.00
12.61
150.99
35.58
12.86
151.62
36.38
13.41
155.42
34.21
12.82
155.67
33.81
12.74
158.18
33.91
11.99
160.25
33.91
12.72
163.91
33.34
12.97
169.08
•Trade and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1. Anticipated by business.
1987
1986 1
2. "Other" consists of construction; wholesale and retail trade; finance and
insurance; personal and business services; and communication.
SOURCE. Survey of Current Business (Department of Commerce).
Securities
1.51
DOMESTIC FINANCE COMPANIES
Markets
and
Corporate
Finance
A37
Assets and Liabilities
Billions of dollars, end of period
1985
Account
1982
1983
1986
1984
Ql
Q2
Q4
Q3
Q2
Ql
03
ASSETS
Accounts receivable, gross
1 Consumer
2 Business
Real estate
4 Total
78.1
101.4
20.2
199.7
87.4
113.4
22.5
223.4
96.7
135.2
26.3
258.3
99.1
142.1
27.2
268.5
106.0
144.6
28.4
279.0
116.4
141.4
29.0
286.5
120.8
152.8
30.4
304.0
125.5
159.7
31.5
316.7
134.7
160.3
32.4
327.5
146.7
152.7
33.8
333.2
31.9
3.5
33.0
4.0
36.5
4.4
36.6
4.9
38.6
4.8
41.0
4.9
40.9
5.0
41.3
5.1
41.8
5.2
43.6
5.5
7 Accounts receivable, net
8 All other
164.3
30.7
186.4
34.0
217.3
35.4
227.0
35.9
235.6
39.5
240.6
46.3
258.1
46.8
270.3
50.6
280.4
52.1
284.1
63.1
9 Total assets
195.0
220.4
252.7
262.9
275.2
286.9
304.9
321.0
332.5
347.2
18.3
51.1
18.7
59.7
21.3
72.5
19.8
79.1
18.5
82.6
18.2
93.6
21.0
96.9
20.4
102.0
22.9
106.4
25.3
110.6
12.7
64.4
21.2
27.4
13.9
68.1
30.1
29.8
16.2
77.2
33.1
32.3
16.8
78.3
35.4
33.5
16.6
85.7
36.9
34.8
16.6
86.4
36.6
35.7
17.2
93.0
39.6
37.1
18.5
100.0
41.4
38.8
20.9
101.8
40.4
40.2
21.6
105.3
43.2
41.3
195.0
220.4
252.7
262.9
275.2
286.9
304.9
321.0
332.5
347.2
Less:
Reserves for unearned income
6 Reserves for losses
LIABILITIES
10 Bank loans
11 Commercial paper
Debt
12 Other short-term
Long-term
n
14 All other liabilities
15 Capital, surplus, and undivided profits
16 Total liabilities and capital
NOTE. Components may not add to totals due to rounding.
These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.
1.52
DOMESTIC FINANCE COMPANIES
Business Credit
Millions of dollars, seasonally adjusted except as noted
Changes in accounts
receivable
Type
Extensions
Repayments
1986
1986
1986
Accounts
receivable
outstanding
Nov. 30,
19861
Sept.
1 Total
2
3
4
5
6
7
8
9
10
Retail financing of installment sales
Automotive (commercial vehicles)
Business, industrial, and farm equipment
Wholesale financing
Automotive
Equipment
All other
Leasing
Automotive
Equipment
Loans on commercial accounts receivable and factored commercial accounts receivable
All other business credit
1. Not seasonally adjusted.
Oct.
Nov.
Sept.
Oct.
Nov.
Sept.
Oct.
Nov.
160,412
-6,552
5,751
1,197
26,662
32,469
26,641
33,214
26,718
25,444
17,866
20,242
1,290
-212
281
11
-422
168
2,299
986
1,359
965
651
1,195
1,009
1,197
1,078
954
1,073
1,027
22,847
4,814
8,010
-9,172
36
113
4,592
134
149
1,194
149
315
7,536
829
1,881
13,818
715
2,043
9,895
883
1,857
16,708
793
1,768
9,226
581
1,893
8,701
734
1,542
16,595
40,342
549
286
248
-10
-90
-237
1,075
1,574
1,018
1,770
766
1,290
526
1,289
770
1,780
856
1,527
16,468
13,228
539
19
-267
613
-125
245
9,298
1,183
9,201
1,580
8,806
1,298
8,760
1,164
9,468
966
8,931
1,053
NOTE. These data also appear in the Board's G.20 (422) release. For address,
see inside front cover.
A38
1.53
DomesticNonfinancialStatistics • March 1987
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1986
Item
1984
1985
1986
June
July
Aug.
Sept.
Oct.
Nov/
Dec.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
6
Conventional mortgages on new homes
Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)2
Contract rate (percent per annum)
Yield (percent per annum)
7 FHLBB series5
8 HUD series4
96.8
73.7
78.7
27.8
2.64
11.87
104.1
77.4
77.1
26.9
2.53
11.12
117.9
86.1
75.2
26.6
2.48
9.82
122.1
88.0
74.9
26.6
2.40
9.74
115.7
83.4
73.9
26.2
2.35
9.89
117.9
84.8
74.5
26.5
2.40
9.84
124.0
90.4
75.2
27.1
2.49
9.74
127.5
93.9
75.6
27.9
2.66
9.57
124.2
92.5
76.2
27.3
2.64
9.45
122.8
91.8
76.4
27.3
2.49
9.28
12.37
13.80
11.58
12.28
10.26
10.07
10.15
10.38
10.30
10.28
10.26
9.88
10.17
9.96
10.02
9.89
9.91
9.47
9.70
9.33
13.81
13.13
12.24
11.61
9.91
9.30
9.98
9.57
10.01
9.31
9.80
9.11
9.90
9.17
9.80
9.06
9.26
8.83
9.21
8.62
SECONDARY MARKETS
Yield (percent per annum)
9 FHA mortgages (HUD series)5
10 GNMA securities 6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional
83,339
35,148
48,191
94,574
34,244
60,331
98,048
29,683
68,365
97,295
31,241
66,054
97,255
30,766
66,489
96,675
28,451
68,224
97,717
26,658
71,059
98,402
25,435
72,967
98,210
24,300
73,910
97,895
23,121
74,774
Mortgage transactions (during period)
14 Purchases
15 Sales
16,721
978
21,510
1,301
30.826
n.a.
3,000
n.a.
3,343
n.a.
3,800
n.a.
4,649
n.a.
3,784
n.a.
2,549
n a.
2,336
n.a.
Mortgage commitments1
16 Contracted (during period)
17 Outstanding (end of period)
21,007
6,384
20,155
3,402
32,987
3,386
3,049
7,862
3,270
7,706
3,840
7,671
4,248
7,252
2,375
5,740
1,811
4,625
1,272
3,386
9,283
910
8,373
12,399
841
11.558
14,194
742
13,452
13,795
692
13,103
14,010
739
13,271
13,359
729
12,630
12,905
722
12,183
Mortgage transactions (during period)
21 Purchases
22 Sales
21,886
18,506
44,012
38,905
10,505
9,588
8,518
8,113
10,458
10,132
12,486
13,072
11,566
11,417
n a.
n a.
Mortgage commitments9
23 Contracted (during period)
24 Outstanding (end of period)
32,603
13,318
48,989
16,613
10,338
n.a.
7,863
n.a.
13,707
n.a.
10,658
n.a.
9,356
n.a.
FEDERAL H O M E LOAN MORTGAGE CORPORATION
Mortgage holdings (end of period)8
18 Total
19 FHA/VA
20 Conventional
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. Based on transactions on first day of subsequent month. Large
monthly movements in average yields may reflect market adjustments to changes
in maximum permissable contract rates.
n a.
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 averages of Friday figures from the
Wall Street Journal.
1. 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
1.54
A39
MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
1985
Type of holder, and type of property
1983
1984
1986
1985
Q3'
Q4'
Ql
Q2
Q3
1,814,918'
2,036,158'
2,268,613'
2,202,635
2,268,613
2,317,838
2,385,606
2,467,229
1,190,884'
160,805
350,389
112,840
1,320,444'
185,414
418,300
112,000
1,468,463'
213,817
480,718
105,615
1,427,431
203,626
463,272
108,306
1,468,463
213,817
480,718
105,615
1,496,572
221,508
495,865
103,893
1,545,939
228,604
509,479
101,584
1,604,434
236,798
525,829
100,168
1,130,781
330,521
182,514
18,410
120,210
9,387
131,940
93,649
17,247
21,016
28
1,272,206
379,498
196,163
20,264
152,894
10,177
154,441
107,302
19,817
27,291
31
1,392,084
429,386
213,624
23,374
181,031
11,357
177,263
121,879
23,329
31,973
82
1,357,483
415,599
209,119
22,254
173,190
11,036
174,427
119,952
22,604
31,757
114
1,392,084
429,386
213,624
23,374
181,031
11,357
177,263
121,879
23,329
31,973
82
1,410,541
441,293
216,580
25,310
187,606
11,797
188,154
131,381
23,980
32,707
86
1,437,054
456,146
222,144
26,306
195,459
12,237
203,238
142,215
26,549
34,370
104
1,466,329
474,724
229,520
28,251
204,481
12,472
214,156
148,010
28,467
37,590
89
494,789
387,924
44,333
62,403
129
150,999
15,319
19,107
103,831
12,742
22,532
555,277
421,489
55,750
77,605
433
156,699
14,120
18,938
111,175
12,466
26,291
583,236
432,422
66,410
83,798
606
171,797
12,381
19,894
127,670
11,852
30,402
573,682
425,596
62,390
85,061
635
164,760
13,454
19,074
120,183
12,049
29,015
583,236
432,422
66,410
83,798
606
171,797
12,381
19,894
127,670
11,852
30,402
574,732
420,073
67,140
86,860
659
174,823
12,605
20,009
130,569
11,640
31,539
565,205
413,952
65,966
84,755
532
180,041
12,608
20,181
135,924
11,328
32,424
558,409
408,584
65,902
83,409
514
185,269
12,927
20,709
140,213
11,420
33,771
148,328
3,395
630
2,765
2,141
1,159
173
409
400
158,993
2,301
585
1,716
1,276
213
119
497
447
166,928
1,473
539
934
733
183
113
159
278
166,248
1,640
552
1,088
577
185
139
72
181
166,928
1,473
539
934
733
183
113
159
278
165,041
1,533
527
1,006
704
217
33
217
237
161,398
876
49
827
570
146
66
111
247
159,505
887
48
839
457
132
57
115
153
4,894
1,893
3,001
78,256
73,045
5,211
52,010
3,081
48,929
7,632
7,559
73
4,816
2,048
2,768
87,940
82,175
5,765
52,261
3,074
49,187
10,399
9,654
745
4,920
2,254
2,666
98,282
91,966
6,316
47,498
2,798
44,700
14,022
11,881
2,141
4,918
2,251
2,667
96,769
90,590
6,179
49,255
2,895
46,360
13,089
11,457
1,632
4,920
2,254
2,666
98,282
91,966
6,316
47,498
2,798
44,700
14,022
11,881
2,141
4,964
2,309
2,655
98,795
92,315
6,480
45,422
2,673
42,749
13,623
12,231
1,392
5,094
2,449
2,645
97,295
90,460
6,835
43,369
2,552
40,817
14,194
11,890
2,304
4,966
2,331
2,635
97,717
90,508
7,209
42,119
2,478
39,641
13,359
11,127
2,232
49 Mortgage pools or trusts 3
50 Government National Mortgage Association
51
1- to 4-family
5?
Multifamily
53 Federal Home Loan Mortgage Corporation
54
1- to 4-family
55
Multifamily
56 Federal National Mortgage Association
57
1- to 4-family
Multifamily
58
59 Farmers Home Administration
60
1- to 4-family
Multifamily
61
Commercial
6?
Farm
63
285,073
159,850
155,950
3,900
57,895
57,273
622
25,121
25,121
n.a.
42,207
20,404
5,090
7,351
9,362
332,057
179,981
175,589
4,392
70,822
70,253
569
36,215
35,965
250
45,039
21,813
5,841
7,559
9,826
415,042
212,145
207,198
4,947
100,387
99,515
872
54,987
54,036
951
47,523
22,186
6,675
8,190
10,472
388,948
201,026
196,198
4,828
91,915
90,997
918
48,769
47,857
912
47,238
22,090
6,415
8,192
10,541
415,042
212,145
207,198
4,947
100,387
99,515
872
54,987
54,036
951
47,523
22,186
6,675
8,190
10,472
440,701
220,348
215,148
5,200
110,337
108,020
2,317
62,310
61,117
1,193
47,706
22,082
6,943
8,150
10,531
475,615
229,204
223,838
5,366
125,903
123,676
2,227
72,377
71,153
1,224
48,131
21,987
7,170
8,347
10,627
522,721
241,230
235,664
5,566
146,871
143,734
3,137
86,359
85,171
1,188
48,261
21,782
7,353
8,409
10,717
64 Individuals and others 4
65
1- to 4-family
66 Multifamily
Commercial
67
68 Farm
250,736'
142,831'
40,873
35,169
31,863
272,902'
153,71c
48,480
41,279
29,433
294,559'
165,199'
55,195
47,897
26,268
289,956
165,223
52,526
44,817
27,390
294,559
165,199
55,195
47,897
26,268
301,555
167,755
57,850
49,756
26,194
311,539
174,396
60,938
50,513
25,692
318,674
178,647
63,253
51,612
25,162
1 All holders
? 1- to 4-family
3 Multifamily
4 Commercial
5
6 Selected financial institutions
7 Commercial banks 1
8
1- to 4-family
9
Multifamily
Commercial
10
11
Farm
1? Savings banks
13
1- to 4-family
Multifamily
14
Commercial
15
16
Farm
17
18
19
70
71
??
73
74
75
26
27
Savings and loan associations
1- to 4-family
Multifamily
Commercial
Farm
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
Finance companies 2
28 Federal and related agencies
29 Government National Mortgage Association
30
1- to 4-family
31
Multifamily
37 Farmers Home Administration
33
1- to 4-family
Multifamily
34
35
Commercial
Farm
36
37
38
39
40
41
42
43
44
45
46
47
48
Federal Housing and Veterans
Administration
1- to 4-family
Multifamily
Federal National Mortgage Association
1- to 4-family
Multifamily
Federal Land Banks
1- to 4-family
Farm
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
1. Includes loans held by nondeposit trust companies but not bank trust
departments.
2. Assumed to be entirely 1- to 4-family loans.
3. Outstanding principal balances of mortgage pools backing securities insured
or guaranteed by the agency indicated.
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 other U.S. agencies.
NOTE. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve. Multifamily debt refers to
loans on structures of five or more units.
A40
1.55
DomesticNonfinancialStatistics • March 1987
CONSUMER INSTALLMENT CREDIT 1 4 Total Outstanding, and Net Change, seasonally adjusted
Millions of dollars
1986
IUCI, dnu iypc UI cicun
1984
1985
Mar.
May
Apr.
June
July
Aug.
Sept.
Oct/
Nov.
Amounts outstanding (end of period)
1 Total
453,580
535,098
550,939
555,810
562,267
567,653
573,216
576,609
584,334
591,542
595,560
By major holder
Commercial banks
Finance companies 2
Credit unions
Retailers 3
Savings institutions
Gasoline companies
209,158
96,126
66,544
37,061
40,330
4,361
240,796
120,095
75,127
39,187
55,555
4,337
245,172
127,422
76,953
39,844
57,573
3,975
247,498
128,728
77,957
39,826
58,024
3,777
248,681
131,172
78,474
40,139
60,247
3,554
249,753
134,933
79,095
40,076
60,352
3,445
251,197
137,197
80,130
40,251
61,051
3,389
251,908
138,938
80,622
40,351
61,421
3,368
253,329
144,559
81,374
40,445
61,331
3,295
255,805
146,862
82,500
40,641
62,414
3,320
258,696
146,218
83,787
40,716
62,867
3,277
By major type of credit
8 Automobile
9
Commercial banks
10
Credit unions
11
Finance companies
12
Savings institutions
173,122
83,900
28,614
54,663
5,945
206,482
92,764
30,577
73,391
9,750
214,361
93,377
31,320
79,416
10,248
215,814
93,013
31,728
80,685
10,386
218,965
93,157
31,939
83,221
10,648
222,606
93,261
32,191
86,520
10,634
226,234
94,014
32,613
88,862
10,745
228,814
94,686
32,813
90,578
10,736
236,280
95,842
33,119
96,598
10,721
240,548
97,359
33,577
98,695
10,916
241,392
98,273
34,101
98,016
11,002
13 Revolving
14
Commercial banks
13
Retailers
16
Gasoline companies
17
Savings institutions
98,514
58,145
33,064
4,361
2,944
118,296
73,893
34,560
4,337
5,506
122,131
77,021
35,188
3,975
5,947
123,442
78,421
35,170
3,777
6,075
124,545
79,151
35,449
3,554
6,392
124,720
79,397
35,390
3,445
6,488
125,577
79,998
35,542
3,389
6,649
125,915
80,133
35,639
3,368
6,775
126,012
80,160
35,688
3,295
6,869
126,514
80,273
35,861
3,320
7,059
128,102
81,709
35,918
3,277
7,198
18 Mobile home
19
Commercial banks
20
Finance companies
21
Savings institutions
24,184
9,623
9,161
5,400
25,461
9,578
9,116
6,767
25,584
9,348
9,327
6,909
25,513
9,264
9,286
6,963
25,560
9,215
9,115
7,230
25,479
9,196
9,077
7,206
25,398
9,156
8,989
7,253
25,215
9,086
8,882
7,248
24,958
9,071
8,681
7,206
24,995
9,075
8,611
7,309
25,029
9,095
8,598
7,337
22 Other
23
Commercial banks
24
Finance companies
23
Credit unions
26
Retailers
27
Savings institutions
157,760
57,490
32,302
37,930
3,997
26,041
184,859
64,561
37,588
44,550
4,627
33,533
188,863
65,427
38,678
45,633
4,656
34,469
191,041
66,800
38,757
46,228
4,656
34,600
193,197
67,158
38,836
46,535
4,690
35,977
194,847
67,898
39,336
46,903
4,686
36,024
196,007
68,030
39,345
47,517
4,710
36,405
196,665
68,003
39,479
47,809
4,712
36,662
197,084
68,256
39,281
48,255
4,758
36,535
199,485
69,098
39,556
48,922
4,780
37,130
201,036
69,618
39,604
49,686
4,798
37,331
2
3
4
3
6
/
Net change (during period)
28 Total
77,341
81,518
3,087
4,871
6,457
5,386
5,563
3,393
7,725
7,208
4,018
By major holder
Commercial banks
Finance companies 2
Credit unions
Retailers 3
Savings institutions
Gasoline companies
39,819
9,961
13,456
2,900
11,038
167
31,638
23,969
8,583
2,126
15,225
-24
411
1,421
522
347
525
-139
2,326
1,306
1,004
-18
451
-198
1,183
2,444
517
313
2,223
-223
1,072
3,761
621
-63
105
-109
1,444
2,264
1,035
175
699
-56
711
1,741
492
100
370
-21
1,421
5,621
752
94
-90
-73
2,476
2,303
1,126
196
1,083
25
2,891
-644
1,287
75
453
-43
By major type of credit
35 Automobile
36
Commercial banks
37
Credit unions
38
Finance companies
39
Savings institutions
27,214
16,352
3,223
4,576
3,063
33,360
8,864
1,963
18,728
3,805
1,019
-451
213
1,106
151
1,453
-364
408
1,269
138
3,151
144
211
2,536
262
3,641
104
252
3,299
-14
3,628
753
422
2,342
111
2,580
672
200
1,716
-9
7,466
1,156
306
6,020
-15
4,268
1,517
458
2,097
195
844
914
524
-679
86
40 Revolving
41
Commercial banks
42
Retailers
43
Gasoline companies
44
Savings institutions
20,145
15,949
2,512
167
1,517
19,782
15,748
1,496
-24
2,562
1,407
1,068
345
-139
134
1,311
1,400
-18
-198
128
1,103
730
279
-223
317
175
246
-59
-109
96
857
601
152
-56
161
338
135
97
-21
126
97
27
49
-73
94
502
113
173
25
190
1,588
1,436
57
-43
139
45 Mobile home
46
Commercial banks
47
Finance companies
48
Savings institutions
1,990
-199
544
1,645
1,277
-45
-45
1,367
11
-218
166
63
-71
-84
-41
54
47
-49
-171
267
-81
-19
-38
-24
-81
-40
-88
47
-183
-70
-107
-5
-257
-15
-201
-42
37
4
-70
103
34
20
-13
28
49 Other
50
Commercial banks
31
Finance companies
32
Credit unions
53
Retailers
34
Savings institutions
27,992
7,717
4,841
10,233
388
4,813
27,099
7,071
5,286
6,620
630
7,492
651
13
148
310
3
178
2,178
1,373
79
595
0
131
2,156
358
79
307
34
1,377
1,650
740
500
368
-4
47
1,160
132
9
614
24
381
658
-27
134
292
2
257
419
253
-198
446
46
-127
2,401
842
275
667
22
595
1,551
520
48
764
18
201
29
30
31
32
33
34
1. The Board's series cover most short- and intermediate-term credit extended
to individuals that is scheduled to be repaid (or has the option of repayment) in
two or more installments.
2. More detail for finance companies is available in the G.20 statistical release,
3. Excludes 30-day charge credit held by travel and entertainment companies,
4. All data have been revised.
Consumer Installment
1.56
Credit
A41
TERMS OF CONSUMER INSTALLMENT CREDIT
Percent unless noted otherwise
1986
Item
1983
1984
1985
May
June
July
Aug.
Sept.
Oct.
Nov.
INTEREST RATES
1
2
3
4
5
6
Commercial banks'
48-month new car 2
24-month personal
120-month mobile home 2
Credit card
Auto finance companies
New car
Used car
13.92
16.68
16.08
18.78
13.71
16.47
15.58
18.77
12.91
15.94
14.96
18.69
11.45
14.89
13.97
18.32
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
11.00
14.70
13.95
18.15
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
10.58
14.19
13.49
18.09
12.58
18.74
14.62
17.85
11.98
17.59
9.49
16.56
9.35
16.06
9.31
15.83
9.29
15.56
5.40
15.23
6.12
15.17
11.83
15.20
45.9
37.9
48.3
39.7
51.5
41.4
49.4
42.5
49.5
42.7
49.9
42.8
50.4
42.9
44.5
42.5
45.3
42.2
53.4
42.6
86
92
88
92
91
94
89
97
89
97
89
97
90
97
92
98
92
97
93
97
8,787
5,033
9,333
5,691
9,915
6,089
10,521
6,393
10,608
6,611
10,748
6,614
10,756
6,569
11,162
6,763
11,340
6,746
11,160
6,946
OTHER TERMS 3
7
8
9
10
It
12
Maturity (months)
New car
Used car
Loan-to-value ratio
New car
Used car
Amount financed (dollars)
New car
Used car
1. Data for midmonth of quarter only.
2. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
3. At auto finance companies.
NOTE. These data also appear in the Board's G.19 (421) release. For address,
see inside front cover.
A42
1.57
DomesticNonfinancialStatistics • March 1987
F U N D S RAISED IN U.S. CREDIT MARKETS
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1983
irdnsaction category, sector
1980
1981
1982
1984
1985
1986
1984
H2
HI
H2
HI
H2
HI
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
5 Private domestic nonfinancial sectors
6 Debt capital instruments
7
Tax-exempt obligations
8
Corporate bonds
y
Mortgages
10
Home mortgages
n
Multifamily residential
12
Commercial
Farm
13
344.9
375.8
387.4
548.8
756.3
869.3
592.2
727.8
784.8
732.6 1,006.1
705.4
79.2
79.8
-.6
87.4
87.8
-.5
161.3
162.1
-.9
186.6
186.7
-.1
198.8
199.0
-.2
223.6
223.7
-.1
156.1
156.3
-.1
181.3
181.5
-.2
216.3
216.4
-.1
201.8
201.9
-.1
245.5
245.5
-.1
211.3
211.4
-.1
265.7
189.1
30.3
27.7
131.2
94.2
7.6
19.2
10.2
288.5
155.5
23.4
22.8
109.3
72.2
4.8
22.2
10.0
226.2
148.3
44.2
18.7
85.4
50.5
5.4
25.2
4.2
362.2
252.8
53.7
16.0
183.0
117.1
14.1
49.0
2.8
557.5
314.0
50.4
46.1
217.5
129.9
25.1
63.3
-.8
645.7
461.7
152.4
73.9
235.4
150.3
29.2
62.4
-6.4
436.0
278.0
51.8
11.5
214.7
135.1
20.4
55.3
3.9
546.5
298.4
42.8
31.2
224.5
135.2
27.5
62.9
-1.1
568.5
329.6
58.0
61.1
210.5
124.7
22.7
63.7
-.5
530.8
355.4
67.5
72.7
215.2
133.1
24.6
60.3
-2.8
760.6
568.0
237.3
75.1
255.7
167.5
33.7
64.4
-10.0
494.1
384.5
19.9
129.1
235.4
153.1
29.0
60.6
-7.3
76.6
4.5
37.8
4.0
30.3
133.0
22.6
57.0
14.7
38.7
77.9
17.7
52.9
-6.1
13.4
109.5
56.8
25.8
-.8
27.7
243.5
95.0
80.1
21.7
46.6
184.0
96.6
41.3
14.6
31.4
158.0
75.1
42.1
4.3
36.5
248.1
98.7
91.9
24.8
32.7
238.9
91.3
68.4
18.7
60.5
175.4
97.3
24.9
12.3
40.9
192.6
95.9
57.7
16.9
22.0
109.7
75.3
22.1
-15.7
28.1
14
13
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
19
20
21
22
23
24
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
265.7
17.2
120.0
15.2
31.8
81.5
288.5
6.8
121.4
16.6
38.5
105.2
226.2
21.5
88.4
6.8
40.2
69.2
362.2
34.0
188.0
4.3
76.6
59.3
557.5
27.4
239.5
.1
97.1
193.4
645.7
107.8
295.0
-13.6
92.8
163.7
436.0
33.7
223.4
6.7
91.7
80.6
546.5
25.2
232.8
-.4
101.4
187.4
568.5
29.6
246.2
.5
92.7
199.5
530.8
56.8
253.6
-5.9
85.6
140.7
760.6
158.7
336.4
-21.3
99.9
186.8
494.1
40.7
228.5
-15.1
95.2
144.8
25 Foreign net borrowing in United States
26 Bonds
27 Bank loans n.e.c
28 Open market paper
29 U.S. government loans
23.8
.8
11.8
2.4
8.8
23.5
5.4
3.0
3.9
11.1
16.0
6.7
-5.5
1.9
13.0
17.4
3.1
3.6
6.5
4.1
6.1
1.3
-6.6
6.2
5.3
1.7
4.0
-2.8
6.2
-5.7
15.5
2.3
-3.4
6.0
10.7
35.5
1.1
-2.2
18.0
18.7
-23.3
1.5
-11.1
-5.6
-8.1
-4.1
5.5
-6.1
4.2
-7.8
7.5
2.6
.4
8.2
-3.6
24.3
7.1
1.4
20.6
-4.8
368.7
399.3
403.4
566.2
762.4
871.0
607.7
763.3
761.5
728.4 1,013.5
729.7
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
3<t
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
65.4
101.9
90.1
94.0
139.0
186.9
123.2
134.2
143.8
154.8
218.9
189.0
44.8
24.4
19.2
1.2
20.6
1.6
47.4
30.5
15.0
1.9
54.5
4.4
67.8
1.4
66.4
74.9
30.4
44.4
69.8
29.1
40.7
80.0
31.8
48.2
92.9
25.3
67.6
26.2
12.1
2.2
40.9
-1.8
64.4
17.3
.4
-.1
31.1
15.7
63.8
29.3
.4
1.4
17.0
15.7
61.9
35.3
-.1
21.3
-7.0
64.1
23.3
.4
.7
24.1
15.7
54.3
13.1
*
101.5
20.6
79.9
1.1
85.3
36.5
.1
2.6
32.0
14.2
68.8
8.1
60.7
*
64.9
14.9
49.5
.4
25.2
12.5
.1
1.9
9.9
.8
.9
13.9
11.7
110.2
15.9
92.1
2 2
108.8
37.7
.1
4.2
50.1
16.7
129.5
4.4
124.3
g
59.6
28.7
.6
2.4
14.4
13.5
1.4
66.4
26.2
5.0
12.1
-2.1
11.4
-.2
30.4
44.4
64.1
7.3
15.6
22.7
17.8
.8
21.7
79.9
85.3
-4.9
14.5
22.3
52.8
.5
8.1
60.7
54.3
17.1
14.9
4.6
18.0
-.3
29.1
40.7
64.4
15.4
23.7
20.2
4.3
.8
31.8
48.2
63.8
-.9
7.5
25.1
31.3
.8
25.3
67.6
61.9
-9.2
13.7
12.1
44.8
.5
18.1
92.1
108.8
-.6
15.3
32.6
60.9
.5
5.2
124.3
59.6
-6.7
1.7
21.3
42.4
.9
-1.0
12.9
7.1
1.2
32.7
16.2
25.6
19.2
20.6
8.3
6.7
7.4
-1.3
-.5
32.4
15.0
54.5
11.6
9.2
15.5
18.5
-.2
15.3
49.5
25.2
11.7
6.8
2.5
4.3
*
*
*
*
All sectors
50 Total net borrowing
434.1
501.3
493.5
660.2
901.4
1057.8
730.8
897.5
905.3
833.3 1,232.4
918.7
51
52
53
54
55
56
57
58
122.9
30.3
30.1
131.1
4.5
48.5
19.3
47.5
133.0
23.4
32.6
109.2
22.6
61.2
51.3
68.0
225.9
44.2
37.8
85.4
17.7
49.3
5.7
27.6
254.4
53.7
31.2
183.0
56.8
29.3
26.9
24.8
273.8
50.4
70.7
217.8
95.0
74.2
52.0
67.6
324.2
152.4
114.4
235.4
96.6
41.0
52.8
41.0
225.0
51.8
26.8
214.6
75.1
40.8
51.2
45.4
251.2
42.8
49.6
224.8
98.7
89.6
73.8
67.1
296.4
58.0
91.9
210.8
91.3
58.8
30.1
68.1
294.8
67.5
113.5
215.2
97.3
19.8
30.4
44.8
340.0
19.9
164.9
236.0
75.3
25.9
19.3
37.5
U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
353.5
237.3
115.3
255.7
95.9
62.3
75.2
37.3
External corporate equity funds raised in United States
59 Total new share issues
21.2
-3.3
33.6
67.0
-31.1
37.5
52.1
-40.1
-22.2
33.3
41.6
153.4
60
61
62
63
64
4.5
16.8
12.9
1.8
2.1
6.0
-9.3
-11.5
1.9
.3
16.8
16.8
11.4
4.0
1.5
32.1
34.9
28.3
2.7
3.9
38.0
-69.1
-77.0
6.7
1.2
103.4
-65.9
-81.6
11.7
4.0
28.7
23.4
18.4
2.9
2.1
39.3
-79.4
-84.5
5.9
-.7
36.6
-58.8
-69.4
7.6
3.0
93.6
-60.4
-75.7
11.0
4.3
113.1
-71.5
-87.5
12.4
3.6
203.9
-50.4
-67.5
8.6
8.5
Mutual funds
All other
Nonfinancial corporations
Financial corporations
Foreign shares purchased in United States
Flow of Funds
1.58
A43
DIRECT A N D INDIRECT SOURCES OF F U N D S TO CREDIT MARKETS
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates.
1984
1983
Transaction category, or sector
1980
1982
1981
1983
1984
H2
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
1985
1986
1985
HI
H2
HI
H2
HI
344.9
375.8
387.4
548.8
756.3
869.3
592.2
727.8
784.8
732.6 1,006.1
705.4
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to savings and loans
Other loans and securities
94.9
15.8
31.7
7.1
40.2
104.4
17.1
23.5
16.2
47.7
115.4
22.7
61.0
.8
30.8
115.3
27.6
76.1
-7.0
18.6
154.6
36.0
56.5
15.7
46.5
203.3
47.2
94.6
14.2
47.3
107.9
20.0
71.5
-1.8
18.2
132.5
26.8
52.7
15.7
37.5
176.6
45.2
60.2
15.7
55.5
201.8
53.1
85.6
11.7
51.4
204.9
41.3
103.7
16.7
43.2
269.9
81.5
121.0
13.5
53.9
7
8
9
10
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
23.7
45.6
4.5
21.1
24.0
48.2
9.2
23.0
15.9
65.5
9.8
24.1
9.7
69.8
10.9
24.9
17.4
73.3
8.4
55.5
17.8
101.5
21.6
62.4
9.7
70.5
12.4
15.3
9.0
74.0
8.8
40.7
25.7
72.5
8.0
70.4
28.8
98.2
23.7
51.0
6.7
104.9
19.5
73.8
14.6
127.3
9.8
118.2
11
12
Agency and foreign borrowing not in line 1
Sponsored credit agencies and mortgage pools
Foreign
44.8
23.8
47.4
23.5
64.9
16.0
67.8
17.4
74.9
6.1
101.5
1.7
68.8
15.5
69.8
35.5
80.0
-23.3
92.9
-4.1
110.2
7.5
129.5
24.3
Private domestic funds advanced
13 Total net advances
14 U.S. government securities
15 State and local obligations
16 Corporate and foreign bonds
17 Residential mortgages
18 Other mortgages and loans
19 LESS: Federal Home Loan Bank advances
318.7
107.1
30.3
20.3
70.0
98.1
7.1
342.3
115.9
23.4
19.8
53.5
145.9
16.2
352.9
203.1
44.2
14.8
-5.3
96.9
.8
518.7
226.9
53.7
14.6
55.0
161.5
-7.0
682.7
237.8
50.4
32.6
98.5
279.1
15.7
769.2
277.0
152.4
41.2
84.8
228.1
14.2
568.6
205.0
51.8
9.1
84.0
217.0
-1.8
700.5
224.4
42.8
25.6
109.9
313.6
15.7
664.9
251.2
58.0
39.6
87.0
244.7
15.7
619.6
241.7
67.5
49.7
72.0
200.4
11.7
918.8
312.2
237.3
32.7
97.5
255.9
16.7
589.3
258.5
19.9
93.5
61.1
169.8
13.5
Private financial intermediation
20 Credit market funds advanced by private financial
institutions
71 Commercial banking
77 Savings institutions
23 Insurance and pension funds
24 Other finance
286.2
107.6
51.3
93.2
34.0
320.2
106.5
26.2
93.5
94.0
261.9
110.2
21.8
86.2
43.7
391.9
144.3
135.6
97.8
14.1
550.5
168.9
149.2
124.0
108.3
554.4
186.3
83.4
141.0
143.6
449.3
168.8
143.9
105.7
30.9
581.8
184.2
173.5
144.5
79.5
519.1
153.5
124.9
103.5
137.2
471.3
133.8
63.0
121.8
152.7
637.4
238.8
103.9
160.1
134.5
573.0
106.9
102.0
130.9
233.2
75 Sources of funds
76 Private domestic deposits and RPs
27 Credit market borrowing
286.2
170.8
20.6
320.2
214.5
54.5
261.9
195.2
25.2
391.9
212.2
26.2
550.5
317.6
64.1
554.4
204.8
85.3
449.3
235.5
54.3
581.8
300.2
64.4
519.1
334.9
63.8
471.3
203.0
61.9
637.4
206.6
108.8
573.0
222.9
59.6
78
29
30
31
32
94.8
-25.1
-2.6
88.9
33.6
51.2
-23.7
-1.1
89.6
-13.6
41.5
-31.4
6.1
92.5
-25.7
153.4
16.3
-5.3
110.6
31.8
168.8
5.4
4.0
112.5
46.8
264.2
17.7
10.3
107.0
129.2
159.5
46.2
-22.4
122.4
13.3
217.2
3.0
-.1
146.5
67.8
120.4
7.8
8.2
78.5
25.9
206.5
11.2
14.4
97.4
83.5
322.0
24.3
6.1
116.6
175.0
290.6
.2
-5.5
109.2
186.7
53.1
34.2
7.0
-11.7
-4.6
28.2
76.6
37.1
11.1
-4.0
1.4
31.0
116.3
69.9
25.0
2.0
-1.3
20.6
153.0
95.5
39.0
-12.7
15.1
16.2
196.4
132.9
29.6
-3.4
8.9
28.3
300.2
150.9
59.2
13.2
51.8
25.1
173.6
87.3
37.7
-4.5
31.9
21.2
183.1
142.2
25.0
-26.8
15.7
26.9
209.6
123.6
34.3
19.9
2.2
29.7
210.2
130.8
20.5
25.4
7.3
26.3
390.2
171.0
98.0
1.0
96.3
24.0
75.9
50.5
-19.4
34.9
-14.7
24.6
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
183.9
10.3
6.5
82.3
29.2
45.9
6.8
2.8
222.4
9.5
18.5
47.3
107.5
36.0
5.2
-1.7
204.5
9.7
18.6
135.7
24.7
5.2
11.1
-.4
229.7
14.3
28.8
215.3
-44.1
-6.3
18.5
3.1
321.1
8.6
27.8
150.7
47.2
84.9
7.0
-5.1
215.1
12.4
42.0
137.5
-2.2
14.0
13.4
-2.1
248.7
17.5
16.9
147.8
-4.2
53.2
21.8
-4.3
311.3
13.1
29.4
136.4
30.2
93.4
10.8
-2.0
330.9
4.1
26.3
164.9
64.2
76.5
3.1
-8.2
215.9
15.8
18.2
167.1
4.2
-.8
14.3
-2.9
214.3
9.0
65.8
108.0
-8.6
28.9
12.5
-1.3
240.0
10.9
84.9
117.5
29.0
3.5
-11.9
6.2
47 Total of credit market instruments, deposits and
currency
237.0
299.0
320.7
382.7
517.4
515.3
422.3
494.4
540.5
426.0
604.5
315.9
48
49
50
25.7
89.8
-4.0
26.2
93.6
-.7
28.6
74.2
-7.3
20.4
75.5
41.3
20.3
80.6
60.9
23.3
72.1
80.1
17.8
79.0
61.4
17.4
83.1
43.7
23.2
78.1
78.2
27.7
76.1
62.2
20.2
69.4
98.1
37.0
97.2
118.4
21.2
4.5
16.8
22.2
-1.0
-3.3
6.0
-9.3
19.9
-23.2
33.6
16.8
16.8
27.6
6.0
67.0
32.1
34.9
46.8
20.2
-31.1
38.0
-69.1
8.2
-39.4
37.5
103.4
-65.9
33.3
4.1
52.1
28.7
23.4
35.6
16.5
-40.1
39.3
-79.4
-4.1
-36.0
-22.2
36.6
-58.8
20.6
-42.7
33.3
93.6
-60.4
54.0
-20.7
41.6
113.1
-71.5
12.6
29.0
153.4
203.9
-50.4
34.8
118.7
7
3
4
5
6
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
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
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
MEMO: Corporate equities not included above
Total net issues
Mutual fund shares
Other equities
54 Acquisitions by financial institutions
55 Other net purchases
51
5?
53
NOTES BY LINE NUMBER.
1.
2.
6.
11.
13.
18.
26.
27.
29.
30.
Line 1 of table 1.57.
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, less
claims on foreign affiliates and deposits by banking in foreign banks.
Demand deposits and note balances at commercial banks.
31. Excludes net investment of these reserves in corporate equities.
32. Mainly retained earnings and net miscellaneous liabilities.
33. Line 13 less line 20 plus line 27.
34-38. Lines 14-18 less amounts acquired by private finance plus amounts
borrowed 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 1987
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures'
1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1986
Measure
1983
1984
1985
Apr.
May
June
July
Aug.
Sept.
Oct.'
Nov.'
Dec.
1 Industrial production
109.2
121.8
124.5
124.7
124.2
124.2
124.9
125.1
124.9r
125.3
126.0
126.6
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
113.9
114.7
109.3
121.7
111.2
102.8
127.1
127.8
118.2
140.5
124.9
114.6
131.7
132.0
120.7
147.1
130.6
114.7
132.7
132.1
124.5
142.3
134.5
113.8
132.4
131.6
124.3
141.2
135.1
113.0
132.4
131.1
124.4
140.0
137.0
113.1
133.2
132.0
125.2
141.0
137.3
113.6
133.8
132.6
125.1
142.5
137.8
113.2
133.3'
132.2'
124.2'
142.8'
137.0'
113.5'
134.0
132.7
124.9
143.1
138.4
113.3
134.5
133.4
125.8
143.5
138.5
114.5
135.3
134.2
126.9
143.9
139.2
114.7
110.2
123.9
127.1
128.7
128.2
128.3
129.2
129.5
129.5
129.9
130.5
131.4
74.0
75.3
80.5
82.0
80.1
80.2
79.9
78.7
79.4
78.1
79.3
78.0
79.7
78.3
79.7
77.9
79.6
78.1'
79.7
77.9
79.9
78.5
80.3
78.6
2
3
4
5
6
7
Industry groupings
8 Manufacturing
Capacity utilization (percent)2
9 Manufacturing
10 Industrial materials industries
11 Construction contracts (1977 = 100)3
138.0
150.0
161.0
176.0
160.0
161.0
163.0
168.0
158.0
170.0
171.0
175.0
12
13
14
15
16
17
18
19
20
21
Nonagricultural employment, total 4
Goods-producing, total
Manufacturing, total
Manufacturing, production-worker . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income5
Retail sales (1977 = 100)6
109.4
95.9
93.6
88.6
115.0
176.6
168.7
149.0
176.0
162.0
114.5
101.6
98.6
94.1
120.0
193.5
184.8
164.6
193.6
179.0
118.5
102.9
98.7
93.5
125.0
206.2
197.8
172.5
205.0
190.6
121.0
102.9
97.8
92.4
128.6
216.9
206.8
175.8
216.5
195.4
121.2
102.6
97.5
92.1
129.0
216.6
207.1
176.1
215.9
197.0
121.1
102.1
97.2
91.8
129.0
216.6
207.6
175.4
215.5
197.5
121.4
102.2
97.1
91.7
129.4
217.2
208.5
175.5
215.8
198.9
121.6
102.2
97.1
91.7
129.7
217.6
209.6
176.6
215.9
201.7
121.9
102.1
97.0
91.7
130.2
218.2
210.1
176.5
216.4
213.0
122.3
102.1
97.1
91.8
130.7
218.9
211.5
179.0
216.8
201.9
122.6
102.3
97.3
92.1
131.0
219.4
212.5
177.6
217.0
200.7
122.9
102.4
97.5
92.4
131.4
221.1
213.2
178.6
218.9
209.6
22
23
Prices7
Consumer
Producer finished goods
298.4
285.2
311.1
291.1
322.2
293.7
325.3
287.2
326.3
288.9
327.9
289.3
328.0
287.6
328.6
288.1'
330.2
287.5
330.5
290.5
330.8
290.7
331.1
289.9
1. A major revision of the industrial production index and the capacity
utilization rates was released in July 1985. See "A Revision of the Index of
Industrial Production" and accompanying tables that contain revised indexes
( 1 9 7 7 = 1 0 0 ) t h r o u g h D e c e m b e r 1984 in t h e FEDERAL RESERVE BULLETIN, v o l . 71
(July 1985), pp. 487-501. The revised indexes for January through June 1985 were
shown in the September BULLETIN.
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).
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.
Selected Measures
2.11
A45
LABOR FORCE, EMPLOYMENT, A N D UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1986
Category
1984
1985
1986
May
June
July
Aug.
Sept.
Oct.'
Nov.'
Dec.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population1
178,602
180,440
182,822
182,545
182,732
182,906
183,074
183,261
183,450
183,628
183,815
2 Labor force (including Armed Forces) 1
3 Civilian labor force
Employment
4
Nonagricultural industries2
5
Agriculture
Unemployment
6
Number
7
Rate (percent of civilian labor force) . . .
8 Not in labor force
115,763
113,544
117,695
115,461
120,078
117,834
119,821'
117,587'
120,234'
118,005'
120,341'
118,117'
120,37C
118,124'
120,536'
118,272'
120,678
118,414
120,940
118,675
120,854
118,586
101,685
3,321
103,971
3,179
106,434
3,163
106,014'
3,151'
106,449'
3,164'
106,763'
3,124'
107,010'
3,057'
106,845'
3,142'
107,030
3,162
107,217
3,215
107,476
3,161
8,539
7.5
62,839
8,312
7.2
62,745
8,237
7.0
62,744
8,422'
7.2'
62,724'
8,392'
7.1'
62,498'
8,230'
7.0f
62,565'
8,057'
6.8'
62,704'
8,285'
7.C
62,725'
8,222
6.9
62,772
8,243
6.9
62,688
7,949
6.7
62,961
94,461
97,698
100,168
99,918
99,843
100,105
100,283
100,560
100,826
101,065
101,334
19,412
974
4,345
5,171
22,134
5,682
20,761
15,984
19,426
969
4,661
5,300
23,195
5,924
21,929
16,295
19,187
792
4,961
5,285
23,829
6,304
23,073
16,738
19,201
790
4,974
5,265
23,783
6,261
22,924
16,720
19,135
772
4,947
5,167
23,773
6,295
23,072
16,682
19,121
768
4,980
5,288
23,841
6,334
23,176
16,597
19,123
753
5,012
5,255
23,893
6,364
23,255
16,628
19,105
743
5,010
5,316
23,924
6,388
23,300
16,774
19,118
746
5,001
5,316
24,007
6,409
23,359
16,870
19,159
743
4,993
5,348
24,050
6,431
23,444
16,897
19,190
738
5,004
5,358
24,042
6,466
23,586
16,950
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment3
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1984
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A46
2.12
D o m e s t i c Nonfinancial Statistics •
M a r c h 1987
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION
Seasonally adjusted
1986
1986
Q2r
Ql
Q3'
Q4
Ql
Q2
1986
Q3
Q4
Capacity (percent of 1977 output)
Output (1977 = 100)
Q2
Ql
Q3
Q4
Utilization rate (percent)
1 Total industry
125.0
124.4
125.0
126.0
156.3
157.1
157.9
158.7
80.0
79.2
79.1'
79.4
2 Mining
3 Utilities
105.4
110.5
99.9
108.9
96.6
108.8
96.5
110.3
132.4'
136.3
132.1
136.9
131.9'
137.5'
131.7
138.1
79.6
81.1
75.6
79.5
73.2'
79.1'
73.3
79.9
4 Manufacturing
128.4
128.4
129.4
130.6
160.5
161.4
162.4'
163.4
80.0
79.5
79.7
79.9
5 Primary processing . . .
6 Advanced processing ,
111.5
138.5
111.1
138.9
112.1
139.7
113.7
140.8
133.6
176.7
134.0
177.9
134.6'
179.1'
135.1
180.4
83.5
78.4
82.9
78.0
83.3'
78.0
84.1
78.1
7 Materials
114.5
113.3
113.4
114.2
144.2
144.7
145.3
145.8
79.4
78.3
78.1
78.3
8 Durable goods
9
Metal materials
10 Nondurable g o o d s . . . .
11 Textile, paper, and chemical..
1>
"
13
120.9
79.0
115.7
116.2
128.8
115.3
118.8
75.1
116.9
117.0
130.1
115.4
118.8
73.1
119.7
120.4
135.1
117.7
120.0
75.7
120.7
121.6
159.9
115.0
139.0
138.4
137.3
144.0
160.7
114.5
139.5
138.8
138.1
144.3
161.5
114.0
139.9
139.2
138.9
144.7
162.2
113.4
140.4
139.6
75.6
68.7
83.2
83.9
93.8
80.1
73.9
65.6
83.8
84.3
94.2
80.0
73.6
64.2'
85.6
86.5
97.3
81.4'
74.0
66.8
86.0
87.1
14 Energy materials
102.2
100.6
98.6
98.4
121.1
121.3
121.4
121.6
84.4
82.9
81.2
80.9
Previous cycle 1
High
Low
Latest cycle 2
High
Low
1985
Dec.
1986
Apr.
May
June
July
Aug.
Sept.'
Oct.'
Nov.'
Dec.
Capacity utilization rate (percent)
15 Total industry
88.6
72.1
86.9
69.5
80.6
79.5
79.1
79.0
79.2'
79.2
79.0
79.1
79.4
79.6
16 Mining
17 Utilities
92.8
95.6
87.8
82.9
95.2
88.5
76.9
78.0
81.1
84.5
76.4
80.0
75.5
79.3
74.9
79.2
73.5
79.9
73.1
78.8
72.9
78.7
72.8
79.4
73.4
80.3
73.7
80.0
18 Manufacturing
87.7
69.9
86.5
68.0
80.2
79.9
79.4
79.3
79.7
79.7'
79.6
79.7
79.9
80.3
19 Primary processing . . .
20 Advanced processing .
91.9
86.0
68.3
71.1
89.1
85.1
65.1
69.5
83.0
79.0
83.2
78.5
82.9
78.0
82.7
77.7
82.9
78.4
83.2
78.0
83.7
77.6
83.7
77.9
84.2
77.9
84.6
78.3
21 Materials
92.0
70.5
89.1
68.4
80.3
78.7
78.1
78.0
78.3
77.9
78.1
77.9
78.5
78.6
22 Durable goods
Metal materials
23
91.8
99.2
64.4
67.1
89.8
93.6
60.9
45.7
76.5
71.8
74.9
68.3
73.7
65.2
73.2
63.2
73.7
63.8
73.5
63.8
73.5
64.8
73.5
64.9
74.3
68.8
74.1
66.6
24 Nondurable goods . . . .
25
Textile, paper, and
chemical
"6
>
"7
>
91.1
66.7
88.1
70.6
82.8
83.6
83.5
84.3
85.0
85.5
86.1
85.9
85.7
86.3
92.8
98.4
92.5
64.8
70.6
64.4
89.4
97.3
87.9
68.6
79.9
63.3
83.3
94.3
79.4
83.6
93.6
79.4
84.2
93.1
80.2
85.1
95.9
80.4
85.6
97.8
80.2
86.5
97.9
81.2
87.4
96.1
82.6
87.0
95.7
82.5
86.8
97.7
81.5
87.4
28 Energy materials
94.6
86.9
94.0
82.2
86.4
82.8
82.9
83.1
82.3
80.6
80.7
80.1
81.2
81.5
1. Monthly high 1973; monthly low 1975.
2. Monthly highs 1978 through 1980; monthly lows 1982.
NOTE. These data also appear in the Board's G.3 (402) release. For address, see
inside front cover.
Selected Measures
2.13
INDUSTRIAL PRODUCTION
A47
Indexes and Gross Value A
Monthly data are seasonally adjusted
Grouping
1977
proportion
1985
avg.
1985
Dec.
1986
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept/
Oct.
NOV.P D e c /
Index (1977 = 100)
MAJOR MARKET
1 Total index
100.00
123.8
125.6
126.2
125.3
123.6
124.7
124.2
124.2
124.9
125.1
124.9
125.3
126.0
126.6
2 Products
3 Final products
Consumer goods
4
5
Equipment
57.72
44.77
25.52
19.25
130.8
131.1
120.2
145.4
133.0
133.2
123.3
146.4
134.0
133.9
123.8
147.5
132.9
132.8
123.3
145.4
131.2
130.6
121.8
142.3
132.7
132.1
124.5
142.3
132.4
131.6
124.3
141.2
132.4
131.1
124.4
140.0
133.2
132.0
125.2
141.0
133.8
132.6
125.1
142.5
133.3
132.2
124.2
142.8
134.0
132.7
124.9
143.1
134.5
133.4
125.8
143.5
135.3
134.2
126.9
143.9
6 Intermediate products
7 Materials
12.94
42.28
130.0
114.2
132.0
115.4
134.2
115.5
133.4
114.8
133.3
113.3
134.5
113.8
135.1
113.0
137.0
113.1
137.3
113.6
137.8
113.2
137.0
113.5
138.4
113.4
138.5
114.5
139.2
114.7
6.89
2.98
1.79
1.16
.63
1.19
3.91
1.24
1.19
.96
1.71
112.9
114.0
112.0
98.9
136.3
116.9
112.2
131.0
131.8
119.8
94.3
115.3
113.9
110.4
94.6
139.8
119.0
116.4
140.4
143.2
123.3
95.1
116.0
116.2
118.2
105.5
141.7
113.3
115.8
133.2
135.7
125.1
98.0
116.6
117.6
119.4
107.1
142.1
114.9
115.8
135.1
137.6
124.4
97.0
112.4
110.4
106.3
93.7
129.6
116.6
113.9
133.7
136.0
121.2
95.5
115.9
116.4
115.1
100.8
141.5
118.4
115.5
138.8
140.6
121.8
95.0
113.8
113.2
110.3
94.8
139.1
117.4
114.3
133.9
135.8
123.3
95.0
114.3
113.7
112.2
99.3
136.1
116.1
114.8
137.5
139.1
122.5
94.1
116.3
116.4
114.5
95.3
150.3
119.1
116.3
138.9
141.6
126.6
94.1
115.7
114.5
110.4
87.8
152.4
120.7
116.7
139.4
142.5
125.8
95.1
117.4
117.0
116.8
96.2
155.1
117.3
117.7
141.2
143.5
126.2
96.0
116.6
112.7
107.7
91.9
137.1
120.1
119.7
143.2
144.9
128.7
97.6
117.4
113.2
107.6
92.3
136.0
121.6
120.5
145.5
147.2
130.2
97.1
119.4
117.0
113.5
99.5
19 Nondurable consumer goods
20 Consumer staples
21
Consumer foods and tobacco
22
Nonfood staples
23
Consumer chemical products ..
24
Consumer paper products
25
Consumer energy
26
Consumer fuel
27
Residential utilities
18.63
15.29
7.80
7.49
2.75
1.88
2.86
1.44
1.42
122.9
129.0
128.8
129.2
149.1
141.9
101.8
88.6
115.3
126.3
132.5
131.6
133.4
153.6
146.5
105.4
91.7
119.4
126.6
132.8
130.1
135.6
156.3
148.9
107.0
94.1
120.1
125.8
132.3
131.1
133.5
158.3
143.4
103.2
92.0
114.5
125.3
131.6
130.3
133.0
156.4
143.1
104.0
92.2
116.1
127.7
134.3
131.9
136.7
163.1
145.1
106.0
93.7
118.4
128.1
135.0
132.4
137.7
162.4
148.6
106.8
96.4
117.5
128.1
135.1
133.3
137.0
163.6
147.1
104.8
91.8
118.1
128.4
135.3
132.2
138.5
166.4
146.4
106.6
91.2
122.3
128.6
135.5
133.2
137.9
163.4
147.7
107.1
94.9
119.6
126.7
133.6
131.0
136.3
161.1
145.7
106.3
92.0
120.9
127.9
134.6
131.4
137.9
162.4
150.5
106.1
90.8
121,6
128.9
135.5
132.5
138.6
163.1
151.5
106.5
91.9
129.7
136.2
Equipment
28 Business and defense equipment
29 Business equipment
30
Construction, mining, and farm ..
31
Manufacturing
32
Power
33
Commercial
34
Transit
35 Defense and space equipment
18.01
14.34
2.08
3.27
1.27
5.22
2.49
3.67
146.0
139.6
64.3
110.7
83.5
217.9
105.4
170.6
147.8
140.0
66.3
111.6
85.4
217.0
105.5
178.5
149.1
141.5
65.3
113.0
82.9
217.8
112.7
178.7
147.8
140.5
63.0
112.9
82.3
216.8
111.7
176.3
145.5
137.7
59.5
112.4
82.0
214.3
104.3
176.2
146.6
138.6
58.6
111.9
83.0
213.4
112.1
178.0
146.0
137.9
60.9
111.9
82.9
212.9
107.3
178.0
145.1
136.6
61.9
111.7
83.5
208.2
108.8
178.4
146.4
137.9
60.6
112.6
81.7
214.5
103.9
179.5
147.8
139.3
58.3
113.3
81.7
217.5
106.9
181.0
148.0
139.3
58.1
113.0
80.3
215.1
113.3
182.0
148.2
139.2
58.0
112.4
80.4
215.8
111.8
183.6
148.4
139.2
56.7
111.1
79.8
217.7
111.0
184.5
148.8
139.3
5.95
6.99
5.67
1.31
118.3
140.0
143.9
122.9
119.8
142.4
146.2
126.2
124.0
142.9
147.2
124.4
122.6
142.6
146.7
124.9
122.6
142.5
146.4
125.6
123.6
143.8
148.0
125.8
123.5
145.0
148.3
130.7
124.1
147.9
151.6
131.9
124.0
148.6
153.3
128.3
125.4
148.4
152.5
130.6
125.9
146.4
151.2
125.8
126.0
148.9
153.9
127.6
126.3
149.0
153.8
128.0
126.7
20.50
4.92
5.94
9.64
4.64
121.4
100.3
158.0
109.7
84.8
121.9
101.1
154.1
112.8
87.9
122.2
103.5
153.8
112.2
85.2
121.3
103.2
153.0
111.0
83.0
119.3
99.9
153.7
108.0
79.6
120.2
99.3
154.8
109.4
82.9
118.4
96.4
152.3
108.8
78.9
117.8
96.3
151.8
107.9
76.7
118.8
96.7
154.3
108.2
77.4
118.8
95.2
155.6
108.1
76.9
118.9
95.3
154.8
108.8
78.4
119.0
96.4
153.8
109.1
78.3
120.6
98.2
155.6
111.0
82.8
120.5
98.4
154.5
110.7
Consumer goods
8 Durable consumer goods
9 Automotive products
10
Autos and trucks
11
Autos, consumer
12
Trucks, consumer
13
Auto parts and allied goods
14 Home goods
15
Appliances, A/C and TV
16
Appliances and TV
17
Carpeting and furniture
18
Miscellaneous home goods
Intermediate products
36 Construction supplies
37 Business supplies
38 General business supplies
39 Commercial energy products
Materials
40 Durable goods materials
41 Durable consumer parts
42 Equipment parts
43 Durable materials n.e.c
44
Basic metal materials
122.2
121.2
145.9
138.9
111.3
80.4
218.0
110.3
186.2
45 Nondurable goods materials
46 Textile, paper, and chemical
materials
47
Textile materials
48
Pulp and paper materials
49
Chemical materials
50 Miscellaneous nondurable materials
10.09
112.2
114.9
116.2
116.1
114.8
116.5
116.5
117.7
118.9
119.7
120.6
120.4
120.3
121.3
7.53
1.52
1.55
4.46
2.57
112.2
98.7
124.1
112.7
112.1
115.0
103.8
129.0
114.0
114.4
116.5
104.1
129.7
116.2
115.4
116.5
107.5
128.8
115.4
115.0
115.5
105.7
128.0
114.5
112.8
115.9
106.7
129.0
114.5
118.2
116.9
108.4
128.6
115.7
115.3
118.2
109.5
132.7
116.1
116.4
119.0
111.2
135.6
115.9
118.3
120.5
113.4
136.0
117.5
117.2
121.8
116.0
133.7
119.7
117.1
121.3
114.3
133.5
119.5
117.6
121.3
114.7
136.5
118.2
117.7
122.1
51 Energy materials
52 Primary energy
53 Converted fuel materials
11.69
7.57
4.12
103.4
107.2
96.4
104.5
108.1
97.9
103.0
106.9
95.8
102.1
106.7
93.6
101.4
107.4
90.5
100.4
106.2
89.7
100.5
106.7
89.2
100.8
106.5
90.4
99.9
104.8
90.9
97.9
103.7
87.3
98.0
103.8
87.4
97.4
103.4
86.4
98.7
104.8
87.5
99.1
A48
2.13
Domestic Nonfinancial Statistics • March 1987
INDUSTRIAL PRODUCTION Indexes and Gross Value—Continued
Grouping
SIC
code
1977
proportion
1985
1986
1985
avg.
Dec.
Jan.
Apr.
May
June
July
Aug.
Sept/
Oct.
NOV.P Dec.
Index (1977 = 100)
MAJOR INDUSTRY
15.79
9.83
5.96
84.21
35.11
49.10
110.0
108.8
111.9
126.4
125.1
127.3
110.2
107.4
114.8
128.2
127.5
128.7
109.8
108.1
112.5
129.4
129.3
129.5
106.8
105.1
109.7
128.7
128.7
128.7
105.4
103.0
109.3
127.2
127.7
126.8
104.2
101.0
109.4
128.7
129.6
128.1
103.1
99.8
108.5
128.2
129.9
127.0
102.6
98.9
108.6
128.3
131.2
126.2
101.8
97.1
109.7
129.2
131.7
127.4
100.9
96.4
108.3
129.5
132.2
127.5
100.8
96.2
108.3
129.5
131.4
128.1
101.1
95.9
109.5
129.9
132.3
128.2
102.0
96.6
110.9
130.5
133.1
128.7
102.1
97.0
110.6
131.4
133.8
129.6
10
11.12
13
14
.50
1.60
7.07
.66
75.0
126.8
106.2
118.3
77.3
128.4
104.2
114.6
73.5
130.8
104.9
113.5
77.2
126.5
101.1
116.8
75.9
124.7
99.2
111.6
76.0
124.4
96.2
115.0
72.0
124.0
95.1
112.4
65.9
127.3
93.3
114.5
69.2
120.2
92.4
111.8
70.9
122.2
90.7
114.8
70.7
120.8
91.0
111.7
117.6
91.2
114.4
130.6
89.3
113.0
88.6
1 Mining and utilities
Mining
2
3
Utilities
4 Manufacturing
Nondurable
5
6
Durable
7
8
9
10
Mining
Metal
Coal
Oil and gas extraction
Stone and earth minerals
11
12
13
14
15
Nondurable
manufactures
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
20
21
22
23
26
7.96
.62
2.29
2.79
3.15
130.2
100.2
103.2
100.9
127.6
132.1
100.3
107.7
104.5
131.3
132.0
93.8
107.9
105.5
133.6
132.9
97.0
109.9
102.8
132.6
132.2
93.6
108.0
102.8
132.4
133.1
100.3
111.4
103.1
134.1
133.7
101.6
111.3
102.6
133.2
134.6
97.6
112.6
101.7
137.2
134.3
97.9
113.4
102.5
138.1
135.1
97.1
114.7
102.5
138.6
134.3
89.8
116.0
102.7
136.9
133.5
100.0
116.4
104.1
137.7
118.6
105.7
140.3
16
17
18
19
20
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products...
Leather and products
27
28
29
30
31
4.54
8.05
2.40
2.80
.53
153.9
127.1
86.8
146.9
68.5
157.6
128.1
88.9
149.4
66.4
160.9
131.7
94.7
150.2
65.4
156.7
132.0
90.1
151.1
64.8
157.8
130.2
88.6
147.8
62.7
161.6
132.8
91.3
146.8
61.5
161.9
131.5
95.7
150.1
59.5
164.0
134.2
91.8
152.2
57.9
165.4
134.1
90.6
155.5
61.9
164.6
134.4
94.0
155.5
62.0
163.0
133.9
93.3
154.9
59.4
168.0
134.2
91.0
157.1
59.2
167.8
134.2
90.4
158.2
61.5
24
25
32
2.30
1.27
2.72
113.4
139.7
115.5
116.1
140.5
118.2
120.5
141.2
120.0
120.3
143.2
119.3
120.7
142.9
120.0
121.3
145.9
121.6
121.6
146.2
120.2
120.9
147.1
120.8
120.8
149.5
119.6
122.5
148.3
119.7
125.0
147.7
121.6
124.8
149.3
118.2
147.9
118.1
Primary metals
Iron and steel
Fabricated metal products . . . .
Nonelectrical machinery
Electrical machinery
33
331.2
34
35
36
5.33
3.49
6.46
9.54
7.15
80.5
70.4
107.3
145.3
168.4
81.7
71.6
108.2
146.2
168.7
82.4
72.2
109.2
144.9
166.1
80.3
69.5
108.5
143.9
164.8
76.3
64.3
107.6
141.7
165.2
78.1
65.6
108.2
140.8
166.8
74.8
60.2
106.5
141.3
166.0
71.4
58.3
106.6
140.4
163.2
73.6
61.7
105.7
142.6
166.8
73.4
60.8
105.9
142.6
167.2
74.1
61.1
107.3
140.9
166.9
74.2
62.2
108.0
142.9
167.8
76.8
64.6
107.5
142.6
167.9
108.1
142.9
169.7
29 Transportation equipment
30
Motor vehicles and parts
31
Aerospace and miscellaneous
transportation equipment
32 Instruments
33 Miscellaneous manufactures...
37
371
9.13
5.25
121.4
111.5
124.0
111.4
128.2
116.5
127.5
116.4
122.6
108.1
126.2
112.6
124.1
108.7
125.1
110.6
125.6
111.2
125.1
108.2
127.7
112.2
125.2
107.1
125.7
107.8
127.8
111.5
372-6.9
38
39
3.87
2.66
1.46
134.9
139.1
96.1
141.0
140.4
96.6
143.9
141.5
100.9
142.6
141.9
100.9
142.4
142.0
99.0
144.8
142.4
99.2
145.0
140.3
101.0
144.7
139.9
98.3
145.2
141.7
97.5
148.0
142.0
98.3
148.7
141.7
97.7
149.7
140.2
100.1
150.0
141.9
99.7
149.9
142.8
4.17
119.7
122.4
119.7
119.5
119.8
121.6
121.7
123.1
125.4
122.4
122.8
123.9
125.4
Durable manufactures
21 Lumber and products
22 Furniture and fixtures
23 Clay, glass, stone products
24
25
26
27
28
Utilities
34 Electric
134.5
168.6
91.3
75.9
Gross value (billions of 1978 dollars, annual rates)
MAJOR MARKET
35 Products, total
517.5 1,650.9 1,676.6 1,702.1 1,686.5 1,660.8 1,686.3 1,687.6 1,676.7 1,669.9 1,681.3 1,677.8 1,684.0 1,690.0 1,700.1
36 Final
37 Consumer goods .
38
Equipment
39 Intermediate
405.7 1,282.3 1,302.5 1,321.2 1,310.3 1,282.5 1,307.0 1,301.1 1,289.5 1,282.7 1,292.6 1,292.3 1,293.2 1,299.2 1,307.7
272.7 820.7 841.7 850.7 845.3 832.0 852.3 852.4 843.8 842.3 846.9 839.8 840.5 848.0 858.1
133.0 461.7 460.8 470.5 465.1 450.4 454.7 448.7 445.7 440.4 445.7 452.5 452.8 451.2 449.6
111.9 368.6 374.1 380.8 376.2 378.3 379.3 386.4 387.2 387.1 388.7 385.5 390.8 390.9 392.5
• A major revision of the industrial production index and the capacity
utilization rates was released in July 1985. See " A Revision of the Index of
Industrial Production" and accompanying tables that contain revised indexes
( 1 9 7 7 = 1 0 0 ) t h r o u g h D e c e m b e r 1984 in t h e FEDERAL RESERVE BULLETIN, v o l . 71
(July 1985), pp. 487-501. The revised indexes for January through June 1985 were
shown in the September BULLETIN.
NOTE. These data also appear in the Board's G. 12.3 (414) release. For address,
see inside front cover.
Selected Measures
2.14
A49
HOUSING A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1986
Item
1983
1984
1985
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Private residential real estate activity (thousands of units)
N E W UNITS
1 Permits authorized
2
1-family
3 2-or-more-family
1,605
902
703
1,682
922
759
1,733
957
777
1,808
1,033
775
1,834
1,043
791
1,885
1,139
746
1,788
1,092
6%
1,792
1,121
671
1,759
1,093
666
1,673
1,039
634
1,603
1,047
556
1,565
1,006
559
1,613
991
622
4 Started
5
1-family
6 2-or-more-family
1,703
1,067
635
1,749
1,084
665
1,742
1,072
669
2,001
1,202
799
1,960
1,221
739
2,019
1,242
777
1,853
1,241
612
1,852
1,230
622
1,782
1,137
645
1,795
1,186
609
1,664
1,102
562
1,628
1,085
543
1,585
1,087
498
7 Under construction, end of period1
8
1-family
9 2-or-more-family
1,003
524
479
1,051
556
494
1,063
539
524
1,110
581
529
1,099
574
526
1,135
586
549
1,132
597
534
1,151
612
539
1,157
623
533
1,164
630
533
1,154
626
527
1,143
625
518
1,128
619
509
1,390
924
466
1,652
1,025
627
1,703
1,072
631
1,725
1,038
687
1,806
1,153
653
1,693
1,127
566
1,829
1,140
689
1,620
1,060
560
1,761
1,067
694
1,763
1,128
635
1,743
1,110
633
1,733
1,166
567
1,749
1,159
590
13 Mobile homes shipped
296
296
284
266
240
249
239
226
236
232
244
244
238
Merchant builder activity in 1-family units
14 Number sold
15 Number for sale, end of period1
622
304
639
358
688
350
741
352
924
338
880
336
787
336
722
340
698
349
618
352
733
354
676
356
661
358
75.5
80.0
84.3
89.7
88.7
92.5
92.1
91.2
94.1
91.5
94.2
95.0
95.5
89.9
97.5
101.0
106.6
108.0
110.3
114.6
110.9
116.8
113.2
113.0
112.5
116.8
2,719
2,868
3,217
3,270
3,200
3,570
3,450
3,390
3,470
3,610
3,770
3,810
3,910
69.8
82.5
72.3
85.9
75.4
90.6
77.4
93.1
79.8
96.8
80.2
98.1
83.2
101.7
82.6
102.1
79.9
99.2
82.0
100.3
79.4
96.8
79.4
97.3
80.4
99.1
10 Completed
11
1-family
12 2-or-more-family
Price (thousands of dollars)2
Median
16 Units sold
Average
17 Units sold
EXISTING UNITS ( 1 - f a m i l y )
18 Number sold
Price of units sold (thousands of dollars)2
19 Median
Value of new construction3 (millions of dollars)
CONSTRUCTION
21 Total put in place
279,240 327,209 355,570 373,947 368,027 373,904 374,483 375,397 380,722
382,603 382,581 379,676
376,958
??
73
74
228,527 271,973 292,792 305,682 298,868 303,320 302,573 304,567 309,003 310,155 308,617 307,736
126,553 155,148 158,818 164,713 165,645 170,520 172,491 174,478 178,821 178,761 178,480 178,642
101,974 116,825 133,974 140,969 133,223 132,800 130,082 130,089 130,182 131,394 130,137 129,094
306,239
177,995
128,244
75
76
77
28
Private
Residential
Nonresidential, total
Buildings
Industrial
Commercial
Other
Public utilities and other
29 Public
30 Military
31 Highway
37 Conservation and development
33 Other
12,863
35,789
11,838
41,484
13,746
48,100
12,547
42,432
15,769
59,626
12,619
45,960
16,381
63,494
13,065
48,029
13,354
60,716
13,131
46,022
14,557
59,763
13,006
45,474
13,658
57,368
13,131
45,925
13,027
57,443
13,263
46,356
12,866
58,132
13,277
45,907
12,543
60,054
13,315
45,482
13,180
58,001
14,001
44,955
12,913
56,430
14,435
45,316
12,654
56,102
14,520
44,968
50,715
2,544
14,143
4,820
29,208
55,232
2,839
16,343
4,654
31,396
62,777
3,283
19,998
4,952
34,544
68,264
3,974
22,273
4,372
37,645
69,159'
3,673
22,673
4,598
38,215
70,583
3,725
23,155'
4,947
38,756
71,910
3,637
23,240'
4,729
40,304
70,830
3,761
22,001'
4,657
40,411
71,719
3,553
21,603
4,415
42,148
72,448
4,132
21,607
4,294
42,415
73,964
5,050
20,552
4,841
43,521
71,940
3,695
20,274
4,843
43,128
70,720
3,714
19,243
4,462
43,301
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.
A50
2.15
Domestic Nonfinancial Statistics • March 1987
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)
Change from 1 month earlier
1986
1986
Index
level
Dec.
Item
1985
Dec.
Mar.
CONSUMER PRICES
1986
(1967
= 100) 1
1986
Dec.
June
Sept.
Dec.
Aug.
Sept.
Oct.
Nov.
Dec.
2
1
All items
3.8
1.1
-1.9
1.5
2.2
2.7
.2
.3
.2
.3
.2
331.1
2
3
4
5
6
Food
Energy items
All items less food and energy
Commodities
Services
2.7
1.8
4.4
2.1
5.7
3.8
-19.7
3.8
1.4
5.2
-1.4
-34.2
4.1
.3
6.5
3.4
-12.5
3.1
-.5
5.2
9.4
-19.5
3.7
3.1
4.1
4.1
-9.7
4.1
2.4
5.0
.9
-1.9
.3
.3
.3
.4
.7
.3
.2
.3
.3
-2.2
.4
.2
.5
.5
-.7
.3
.2
.4
.2
.3
.3
.2
.3
325.2
342.4
332.8
265.8
405.7
1.8
.5
-.3
2.7
2.7
-2.5
2.9
-39.1
2.9
2.1
-12.5
-8.1
-66.9
2.5
.7
.4
5.9
-22.3
2.0
2.3
.7
13.0
-36.9
2.2
2.2
2.2
1.8
-15.7
5.4
3.2
.3
.9
-4.3
.8
.5
.2
-.1
.0
.3
.3
.0
-.4
.2
.2
.0
289.9
282.9
446.8
262.0
310.1
-.1
-.1
-4.5
.1
-11.8
-1.0
-5.3
-1.3
-.8
2.0
.1
.8
-.1
.1
-.3
.1
.2
.2
.1
-.1
310.5
304.8
-6.4
-4.9
-4.3
-1.7
-29.4
1.6
-24.7
-51.3
-.2
1.6
-29.1
7.0
20.1
-13.3
-18.1
1.5
-16.9
20.1
-5.6
2.6
-.9
1.7
-.2
-.7
1.6
-2.0
-3.0
1.4
232.8
519.5
246.9
PRODUCER PRICES
7
8
9
10
11
Finished goods
Consumer foods
Consumer energy
Other consumer goods
Capital equipment
12
13
Intermediate materials
Excluding energy
14
IS
16
3
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.
.3'
1.6'
.(V
.1
2.8'
.5'
-.3'
4.4'
.3'
.4
.5
.2
-1.5'
4.6'
.5
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
Selected Measures
2.16
A51
GROSS NATIONAL PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1986
1985
Account
1984
1985
1986
Q4
Ql
Q2
Q4
Q3
GROSS NATIONAL PRODUCT
3,765.0
3,998.1
4,208.5
4,087.7
4,149.2
4,175.6
4,240.7
4,268.4
2,428.2
331.2
870.1
1,227.0
2,600.5
359.3
905.1
1,336.1
2,762.4
388.3
932.7
1,441.3
2,667.9
362.0
922.6
1,383.2
2,697.9
360.8
929.7
1,407.4
2,732.0
373.9
928.4
1,429.8
2,799.8
414.5
932.8
1,452.4
2,819.9
404.2
940.0
1,475.7
662.1
598.0
416.5
139.3
277.3
181.4
661.1
650.0
458.2
154.8
303.4
191.8
686.4
675.1
458.5
143.6
314.9
216.6
669.5
672.6
474.0
157.2
316.8
198.6
708.3
664.4
459.2
154.6
304.6
205.3
687.3
672.8
457.5
141.5
316.0
215.3
675.8
680.3
459.0
139.5
319.5
221.3
674.5
682.7
458.1
138.6
319.5
224.6
64.1
56.6
11.1
12.2
11.4
11.8
-3.1
16.7
43.8
41.2
14.5
10.5
-4.5
-10.3
-8.3
5.7
-58.7
382.7
441.4
-78.9
369.8
448.6
-105.7
373.0
478.7
-105.3
368.2
473.6
-93.7
374.8
468.5
-104.5
363.0
467.5
-108.9
370.8
479.7
-115.6
383.4
499.0
733.4
311.3
422.2
815.4
354.1
461.3
865.3
367.2
498.1
855.6
380.9
474.7
836.7
355.7
480.9
860.8
367.6
493.3
874.0
369.3
504.7
889.7
376.3
513.3
3,700.9
1,576.7
675.0
901.7
1,813.1
375.1
3,987.0
1,630.2
700.2
930.0
1,959.8
408.1
4,197.1
1,673.0
719.7
953.3
2,105.5
430.1
4,090.8
1,644.1
709.1
935.0
2,025.5
418.1
4,105.4
1,669.0
710.6
958.4
2,057.7
422.6
4,161.2
1,661.6
703.1
958.5
2,087.4
426.7
4,245.2
1,680.2
730.1
950.1
2,125.2
435.3
4,276.7
1,681.1
735.0
946.1
2,151.7
435.7
64.1
39.2
24.9
11.1
6.6
4.5
11.4
4.2
7.2
-3.1
9.5
-12.7
43.8
28.6
15.3
14.5
-.1
14.6
-4.5
-15.6
11.1
-8.3
3.9
-12.2
3,489.9
3,585.2
3,676.5
3,622.3
3,655.9
3,661.4
3,686.4
3,702.4
30 Total
3,032.0
3,222.3
3,387.4
3,287.3
3,340.7
3,376.4
3,396.1
n.a.
31 Compensation of employees
32 Wages and salaries
33
Government and government enterprises
34
Other
35 Supplement to wages and salaries
36
Employer contributions for social insurance
37
Other labor income
2,214.7
1,837.0
346.2
1,490.6
377.7
193.1
184.5
2,368.2
1,965.8
372.2
1,593.9
402.4
205.5
196.9
2,498.3
2,073.8
395.7
1,678.1
424.5
215.7
208.8
2,423.6
2,012.8
381.6
1,631.1
410.9
209.1
201.7
2,461.5
2,044.1
387.2
1,656.8
417.4
212.9
204.5
2,480.2
2,058.8
392.5
1,666.3
421.3
214.1
207.3
2,507.4
2,081.1
398.4
1,682.7
426.3
215.9
210.4
2,544.2
2,111.1
404.4
1,706.7
433.1
220.1
213.0
236.9
205.3
31.5
254.4
225.2
29.2
278.9
252.5
26.4
262.1
232.7
29.4
265.3
240.9
24.4
289.1
249.6
39.5
277.5
258.0
19.6
283.7
261.6
22.2
1 Total
2
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
6 Gross private domestic investment
Fixed investment
7
8
Nonresidential
Structures
9
10
Producers' durable equipment
11
Residential structures
12
13
Change in business inventories
Nonfarm
14 Net exports of goods and services
16
Imports
17 Government purchases of goods and services
18 Federal
19 State and local
By major type of product
21
22
23
Goods
Durable
Nondurable
25
Structures
26 Change in business inventories
27 Durable goods
28 Nondurable goods
29 MEMO: Total GNP in 1982 dollars
NATIONAL INCOME
39
40
Business and professional1
Farm 1
8.3
7.6
15.6
8.3
12.8
16.3
16.2
17.0
42 Corporate profits'
43 Profits before tax 3
44 Inventory valuation adjustment
45 Capital consumption adjustment
264.7
235.7
-5.5
34.5
280.7
223.2
-.6
58.1
299.7
236.6
6.3
56.8
285.6
235.8
-9.4
59.2
296.4
222.5
16.5
57.3
293.1
227.7
10.6
54.8
302.0
240.4
55.5
n.a.
n.a.
-8.0
59.5
46 Net interest
307.4
311.4
294.9
307.6
304.9
297.7
292.9
284.1
41 Rental income of persons 2
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
6.1
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
A52
2.17
Domestic Nonfinancial Statistics • March 1987
PERSONAL INCOME A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1985
Account
1985
Q4
Q3
Q2
Q1
PERSONAL INCOME AND SAVING
1 Total personal income
3,110.2
3,314.5
3,487.0
3,382.9
3,432.6
3,483.3
3,498.8
2 Wage and salary disbursements
3 Commodity—producing industries
4
Manufacturing
5 Distributive industries
6 Service industries
7 Government and government enterprises.
1.836.8
577.8
439.1
442.2
470.6
346.2
1,966.1
607.7
460.1
469.8
516.4
372.2
2,073.8
623.3
471.3
488.0
566.8
395.7
2,012.8
617.7
467.5
478.9
534.6
381.6
2,044.1
2,058.8
2,081.1
620.8
621.8
470.5
485.2
549.6
387.2
468.8
484.3
561.3
392.5
470.0
488.3
572.6
398.4
184.5
236.9
205.3
31.5
8.3
74.7
446.9
455.6
235.7
196.9
254.4
225.2
29.2
7.6
76.4
476.2
487.1
253.4
208.8
201.7
278.9
252.5
26.4
15.6
81.2
475.4
513.7
266.7
262.1
204.5
265.3
240.9
24.4
12.8
79.1
480.8
504.7
263.2
207.3
289.1
249.6
39.5
16.3
81.1
480.1
510.1
264.1
210.4
277.5
258.0
19.6
133.5
150.2
160.3
152.9
158.6
159.5
160.8
3,483.3
3.498.8
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income1
Business and professional 1
Farm 1
Rental income of persons 2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits.
LESS: Personal contributions for social insurance
232.7
29.4
8.3
76.7
480.6
493.6
256.8
622.0
16.2
82.0
473.8
518.5
269.6
3,110.2
3,314.5
3,487.0
3,382.9
3,432.6
439.6
486.5
513.4
500.7
497.5
504.8
519.0
20 EQUALS: Disposable personal income
2,670.6
2,828.0
2,973.7
2,882.2
2,935.1
2,978.5
2.979.9
21
LESS: Personal outlays
2.501.9
2,684.7
2,857.4
2,756.4
2,789.4
2,825.5
2,895.8
22 EQUALS: Personal saving
168.7
143.3
116.3
125.8
145.6
153.1
84.1
14,721.1
9,475.4
10,421.0
6.3
14,980.9
9,713.0
10,563.0
5.1
15,223.6
10,014.9
10,780.0
3.9
15,079.9
9,790.3
10,577.0
4.4
15,188.0
9,857.1
10,723.0
5.0
15,178.9
9,984.4
5.1
15,245.6
10,124.0
10,776.0
2.8
27 Gross saving.
573.3
551.5
537.4
524.1
583.2
539.7
517.2
28
29
30
31
674.8
168.7
91.0
-5.5
687.8
143.3
107.3
-.6
680.5
116.3
109.1
6.3
679.2
125.8
106.8
-9.4
708.3
145.6
115.5
16.5
713.0
153.1
650.5
84.1
106.6
10.6
108.1
6.1
253.9
161.2
268.2
169.0
280.2
273.3
173.4
278.9
174.4
281.6
.0
.0
.0
275.3
171.8
.0
.0
.0
176.0
.0
-101.5
-170.0
68.5
-136.3
-198.0
61.7
-143.1
-204.0
60.8
-155.1
-217.6
62.5
-125.1
-195.0
69.9
-173.3
-232.2
58.9
-133.3
-197.4
64.0
18 EQUALS: Personal income
19
LESS: Personal tax and nontax payments
MEMO
Per capita (1982 dollars)
23 Gross national product
24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
10,886.0
GROSS SAVING
Gross private saving
Personal saving
Undistributed corporate profits1
Corporate inventory valuation adjustment.
Capital consumption allowances
32 Corporate
33 Noncorporate
34 Wage accruals less disbursements
35 Government surplus, or deficit ( - ) , national income and
product accounts
36 Federal
37 State and local
175.0
.0
.0
.0
.0
.0
.0
.0
39 Gross investment
571.4
545.9
542.8
525.7
579.6
544.3
527.5
40 Gross private domestic
41 Net foreign
662.1
661.1
-90.7
-115.2
686.4
-143.7
669.5
-143.8
708.3
-128.6
687.3
-143.0
675.8
-148.3
5.4
1.6
4.6
10.3
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).
Summary Statistics
3.10
U.S. INTERNATIONAL TRANSACTIONS
A53
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
1985
Item credits or debits
1984
1983
Q4
Q3
1 Balance on current account
i
A
5
6
7
8
9
10
Merchandise trade balance 2
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net 3
Other service transactions, net
Remittances, pensions, and other transfers
U.S. government grants (excluding military)
1986
1985
Q3 P
Q2
Ql
-46,605
-106,466
-117,677
-28,455
-32,275
-33,695
-31,510
-34,038
-31,020
-34,413
-35,458
-36,280
-40,206
-67,080
201,820
-268,900
-370
24,841
5,484
-112,522
219,900
-332,422
-1,827
18,751
1,288
-124,439
214,424
-338,863
-2,917
25,188
-525
-31,675
52,498
-84,173
-619
8,262
-422
-37,352
52,727
-90,079
-1,322
9,255
-32
-36,459
53,661
-90,120
-1,066
6,517
-7
-35,669
55,149
-90,818
-695
5,325
705
-37,669
55,318
-92,987
-624
5,509
681
-3,194
-6,286
-3,621
-8,536
-3,787
-11,196
-914
-3,087
-937
-3,307
-954
-2,069
-834
-3,245
-789
-3,388
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
-5,005
-5,523
-2,824
-422
-540
-250
-209
-1,346
12 Change in U.S. official reserve assets (increase, - )
13 Gold
14 Special drawing rights (SDRs)
15 Reserve position in International Monetary Fund
16 Foreign currencies
-1,196
0
-66
-4,434
3,304
-3,130
0
-979
-995
-1,156
-3,858
0
-897
908
-3,869
-121
0
-264
388
-245
-3,148
0
-189
168
-3,126
-115
0
-274
344
-185
16
0
-104
366
-246
280
0
163
508
-391
17 Change in U.S. private assets abroad (increase, - ) 3
18 Bank-reported claims
19 Nonbank-reported claims
20 U.S. purchase of foreign securities, net
U.S. direct investments abroad, net 3
21
-43,821
-29,928
-6,513
-7,007
-373
-14,987
-11,127
5,081
-5,082
-3,859
-25,754
-691
1,665
-7,977
-18,752
-5,324
4,009
-1,517
-1,664
-6,152
-19,579
-8,485
418
-1,411
-10,101
-12,533
6,333
-2,842
-6,133
-9,891
-25,357
-14,387
-1,220
-1,664
-8,806
-28,016
-20,507
n.a.
163
-7,672
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 assets 5
5,968
6,972
-476
725
545
-1,798
3,037
4,690
13
436
555
-2,657
-1,324
-546
-295
483
522
-1,488
2,577
-81
46
58
2,932
-378
-1,322
-1,976
-171
263
722
-160
2,469
3,256
-177
288
-1,261
363
14,704
14,538
-644
679
662
-531
15,839
12,262
-276
954
3,201
-302
28 Change in foreign3 private assets in the United States
(increase, +)
U.S. bank-reported liabilities
U.S. nonbank-reported liabilities
Foreign private purchases of U.S. Treasury securities, net
Foreign purchases of other U.S. securities, net
Foreign direct investments in the United States, net 3
79,528
50,342
-118
8,721
8,636
11,947
99,730
33,849
4,704
23,059
12,759
25,359
128,430
40,387
-1,172
20,500
50,859
17,856
33,088
7,276
589
7,484
11,628
6,111
53,158
20,427
2,232
5,676
22,441
2,382
34,151
8,434
-2,057
7,666
18,686
1,422
32,822
3,553
-1,644
3,807
23,018
4,088
53,294
32,187
n.a.
597
17,078
3,432
0
11,130
0
27,338
0
23,006
0
-1,343
-3,687
0
5,125
3,771
0
10,316
1,216
0
12,437
-1,505
0
-3,771
-3,993
11,130
27,338
23,006
2,344
1,354
9,100
13,942
222
-1,196
-3,130
-3,858
-121
-3,148
-115
16
280
5,243
2,601
-1,807
2,519
-1,585
2,181
14,025
14,885
-8,283
-4,304
-6,599
-1,831
-1,002
1,421
-1,938
-2,828
22
12
15
79
30
31
32
33
34 Allocation of SDRs
35 Discrepancy
36
37 Statistical discrepancy in recorded data before seasonal
adjustment
MEMO
Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in the United States
(increase, +)
40 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 22
above)
41 Transfers under military grant programs (excluded from
lines 4, 6, and 10 above)
38
39
194
1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and
38-41.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing; military
exports are excluded from merchandise data and are included in line 6.
3. Includes reinvested earnings.
190
64
15
28
4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign officii 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).
A54
International Statistics • March 1987
3.11
U.S. FOREIGN TRADE
Millions of dollars; monthly data are not seasonally adjusted.
1986
Item
1983
1984
1985
May
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments
213,146
June
July
Aug.
Oct.
Nov.
200,486
217,865
2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded
warehouses
258,048
325,726
345,276
30,272
31,764
34,121
29,476
28,695
30,018
36,187
3 Trade balance
-57,562
107,861
-132,129
-12,842
-12,694
-16,414
-11,871
-11,177
-10,688
-17,592
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
3.12
17,431
17,707
Sept.
19,070
17,604
17,518
19.33CK
18,595
the export side, the largest adjustments are: (1) the addition of exports to Canada
not covered in Census statistics, and (2) the exclusion of military sales (which are
combined with other military transactions and reported separately in the "service
account" in table 3.10, line 6). On the import side, additions are made for gold,
ship purchases, imports of electricity from Canada, and other transactions;
military payments are excluded and shown separately as indicated above.
SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade"
(Department of Commerce, Bureau of the Census).
U.S. RESERVE ASSETS
Millions of dollars, end of period
1986
1984
1983
Type
1985
July
June
2 3
3 Special drawing rights -
4 Reserve position in International Monetary Fund2
Foreign currencies4
Oct.P
NOV.p
Dec.P
34,934
43,191
46,635
47,430
48,161
48,086
47,107
47,838
48,447
11,121
11,096
11,090
11,084
11,084
11,084
11,084
11,084
11,084
11,084
5,025
5,641
7,293
8,213
8,085
8,250
8,295
8,090
8,310
8,395
11,312
11,541
11,952
12,109
12,114
12,017
11,922
11,575
11,659
11,730
6,289
6,656
12,856
15,229
16,147
16,810
16,785
16,358
16,785
17,238
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
Sept.
33,747
1 Total
2 Gold stock, including Exchange Stabilization Fund1
5
Aug.
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.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1986
Assets
1984
1983
1985
July
June
1 Deposits
Assets held in custody
2 U.S. Treasury securities'
3 Earmarked gold2
Sept.
Oct.
Nov.
Dec.
190
267
480
354
233
227
342
303
224
287
117,670
14,414
118,000
14,242
121,004
14.245
137,820
14,128
144,527
14,131
148,263
14,120
152,275
14,115
156,076
14,110
156,919
14,057
155,835
14,048
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.
Aug.
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.
Summary Statistics
3.14
FOREIGN BRANCHES OF U.S. B A N K S
A55
Balance Sheet Data1
Millions of dollars, end of period
1986
1983
Asset account
1984
1985
May
Aug.
Sept.
Oct.
Nov.?
454,886
461,440'
474,567
446,581
446,555
117,812
82,565
14,039
21,208
324,216
98,406
105,648
23,279
96,883
113,474
79,387
13,527
20,560
314,354
92,641
103,095
23,578
95,040
117,661
83,779
13,072
20,810
315,583
93,435
102,849
23,720
95,579
116,382
82,302
13,624
20,456
328,563
103,278
107,503
23,505
94,277
112,068
79,999
11,659
20,410
305,572
90,412
100,707
24,215
90,238
108,355
76,207
11,904
20,244
308,401
91,570
103,290
23,357
90,184
June
July
All foreign countries
477,090
1 Total, all currencies
115,542
82,026
453,656
458,012
119,713
87,201
13,057
19,455
315,680
91,399
102,960
23,478
97,843
459,587
117,724
83,404
13,206
21,114
316,337
90,447
103,958
23,846
98,086
467,565
342,689
96,004
117,668
24,517
107,785
11 Other assets
113,393
78,109
13,664
21,620
320,162
95,184
100,397
23,343
101,238
18,859
7 Claims on United States
Parent bank
4 Other banks in United States2
5 Nonbanks 2
6 Claims on foreigners
7 Other branches of parent bank
8 Banks
9 Public borrowers
10 Nonbank foreigners
20,101
22,619
25,526
25,537
27,058
28,196'
29,622
28,941
29,799
322,837
327,639
330,597
309,087
306,633
12 Total payable in U.S. dollars
371,508
350,636
336,288
313,703
318,375'
n Claims on United States
14 Parent bank
15 Other banks in United States 2
2
16 Nonbanks
17 Claims on foreigners
18 Other branches of parent bank
19 Banks
70 Public borrowers
21 Nonbank foreigners
113,436
80,909
247,406
78,431
93,332
17,890
60,977
111,426
77,229
13,500
20,697
228,600
78,746
76,940
17,626
55,288
116,645
85,971
12,454
18,220
209,905
72,689
71,748
17,252
48,216
113,864
82,110
12,293
19,461
198,358
69,684
65,160
17,203
46,311
113,519
81,073
12,907
19,539
203,934
75,883
66,751
16,498
44,802
109,263
78,025
12,373
18,865
194,102
69,135
65,033
16,684
43,250
113,636
82,261
12,180
19,195
194,643
68,604
64,940
16,788
44,311
112,133
80,753
12,802
18,578
207,701
78,400
68,596
16,521
44,184
107,612
78,335
10,544
18,733
190,030
67,835
62,836
17,455
41,904
104,226
74,707
10,986
18,533
190,661
67,835
64,917
16,821
41,088
10,666
10,610
9,738
10,615
10,186
10,338
10,096'
10,763
11,445
11,746
I
22 Other assets
United Kingdom
158,732
23 Total, all currencies
74 Claims on United States
75 Parent bank
76 Other banks in United States 2
77 Nonbanks 2
78 Claims on foreigners
79 Other branches of parent bank
30 Banks
31 Public borrowers
32 Nonbank foreigners
152,075
151,593
145,448
145,619
151,596
142,398
143,800
30,223
24,252
1,369
4,602
108,156
31,613
38,393
5,229
32,921
29,839
23,466
1,448
4,925
109,024
31,828
38,048
5,336
33,812
30,879
24,291
2,092
4,496
113,368
34,678
40,204
5,086
33,400
30,747
24,800
1,314
4,633
105,534
31,268
37,836
5,157
31,273
28,942
22,673
1,534
4,735
108,145
29,960
41,143
5,038
32,004
7,069
6,756
7,349
6,117
6,713
97,119
119,280
36,565
43,352
5,898
33,465
27,675
21,862
1,429
4,384
111,828
37,953
37,443
5,334
31,098
33,157
26,970
1,106
5,081
110,217
31,576
39,250
5,644
33,747
34,231
28,001
1,312
4,918
111,823
31,984
39,222
5,427
35,190
5,019
4,882
5,225
6,021
6,490
1
126,012
1
112,809
108,626
106,716
104,013
97,641
97,771
103,228
97,295
33,756
28,756
34 Total payable in U.S. dollars
44 Other assets
148,599
31,364
25,106
1,365
4,893
113,739
34,670
39,430
5,236
34,403
34,433
29,111
33 Other assets
35 Claims on United States
36 Parent bank
37 Other banks in United States 2
38 Nonbanks 2
39 Claims on foreigners
40 Other branches of parent bank
41 Banks
47 Public borrowers
43 Nonbank foreigners
144,385
88,917
31,838
32,188
4,194
20,697
26,868
21,495
1,363
4,010
82,945
33,607
26,805
4,030
18,503
32,092
26,568
1,005
4,519
73,475
26,011
26,139
3,999
17,326
32,872
27,584
1,152
4,136
70,406
26,265
23,134
3,937
17,070
29,944
24,693
1,102
4,149
70,697
27,559
22,825
3,777
16,536
28,848
23,888
1,131
3,829
65,472
24,258
21,938
3,793
15,483
28,446
22,972
1,194
4,280
66,465
24,657
21,636
3,838
16,334
29,512
23,826
1,848
3,838
70,325
27,151
22,917
3,778
16,479
29,312
24,323
1,110
3,879
64,873
24,632
21,011
3,859
15,371
27,566
22,108
1,364
4,094
66,296
23,223
24,018
3,811
15,244
3,339
2,996
3,059
3,438
3,372
3,321
2,860
3,391
3,110
3,257
c rw\
Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
47 Parent bank
48 Other banks in United States 2
49 Nonbanks 2
50 Claims on foreigners
51 Other branches of parent bank
57 Banks
53 Public borrowers
54 Nonbank foreigners
55 Other assets
56 Total payable in U.S. dollars
152,083
146,811
142,055
132,122
138,944
134,238
137,526
143,082
134,060
131,306
75,309
48,720
72,868
20,626
36,842
6,093
12,592
77,296
49,449
11,544
16,303
65,598
17,661
30,246
6,089
11,602
74,864
50,553
11,204
13,107
63,882
19,042
28,192
6,458
10,190
68,807
42,868
10,916
15,023
59,292
15,703
26,397
6,717
10,475
70,883
44,183
11,730
14,970
64,043
20,585
27,078
6,405
9,975
69,812
43,867
11,201
14,744
60,363
16,682
27,160
6,551
9,970
73,047
47,694
10,813
14,540
60,167
16,539
27,065
6,675
9,888
71,918
46,635
10,641
14,642
66,620
22,763
27,779
6,434
9,644
68,614
44,476
9,557
14,581
59,622
16,985
26,205
7,263
9,169
66,011
42,166
9,628
14,217
59,446
18,139
25,743
6,697
8,867
3,906
3,917
3,309
4,023
4,018
4,063
4,312
4,544
5,824
5,849
141,562
136,794
125,681
132,353
127,910
130,723
127,361
124,744
145,641
1. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
136,615
2. Data for assets vis-a-vis other banks in the United States and vis-a-vis
nonbanks are combined for dates before June 1984.
A56
3.14
International Statistics • March 1987
Continued
1986
May
June
July
Aug.
Sept.
Oct.
NOV.P
All foreign countries
57 Total, all currencies
477,090
453,656
458,012
459,587
467,565
454,886
461,440r
474,567
446,581
446,555
58 Negotiable CDs 3
59 To United States
Parent bank
60
Other banks in United States
61
62
Nonbanks
n.a.
188,070
81,261
29,453
77,356
37,725
147,583
78,739
18,409
50,435
34,607
155,538
83,914
16,894
54,730
35,006
144,241
77,484
14,347
52,410
34,683
149,848
85,126
16,118
48,604
32,656
141,599
81,299
14,191
46,109
31,475
145,488
79,564
15,151
50,773
33,642
151,281
87,927
14,153
49,201
32,444
141,126
75,777
14,791
50,558
32,926
137,106
75,087
14,666
47,353
63 To foreigners
64
Other branches of parent bank
65
Banks
Official institutions
66
67
Nonbank foreigners
68 Other liabilities
269,685
90,615
92,889
18,896
68,845
19,335
247,907
93,909
78,203
20,281
55,514
20,441
245,942
89,529
76,814
19,523
60,076
21,925
258,700
90,228
83,251
20,792
64,429
21,640
262,329
97,717
81,008
20,480
63,124
20,705
259,133
91,144
82,854
20,608
64,527
21,498
262,978
91,307
85,239
20,637
65,795
21,463
269,322
102,245
81,953
20,109
65,015
20,322
253,202
87,883
80,709
19,436
65,174
19,890
256,471
87,865
83,639
18,831
66,136
20,052
69 Total payable in U.S. dollars
388,291
367,145
353,470
340,176
346,428
330,183
333,581
349,259
323,699
319,885
70 Negotiable CDs 3
71 To United States
Parent bank
72
Other banks in United States
73
Nonbanks
74
n.a.
184,305
79,035
28,936
76,334
35,227
143,571
76,254
17,935
49,382
31,063
150,161
80,888
16,264
53,009
31,513
137,694
73,950
13,575
50,169
31,076
142,730
81,066
15,323
46,341
28,970
133,908
77,048
13,507
43,353
28,091
137,805
75,391
14,364
48,050
30,560
143,627
83,790
13,173
46,664
29,206
133,301
71,858
13,768
47,675
29,752
129,299
71,042
13,811
44,446
75 To foreigners
Other branches of parent bank
76
77
Banks
Official institutions
78
79 Nonbank foreigners
80 Other liabilities
194,139
73,522
57,022
13,855
51,260
9,847
178,260
77,770
45,123
15,773
39,594
10,087
163,361
70,943
37,323
14,354
40,741
8,885
162,528
69,978
36,335
14,049
42,166
8,441
163,943
75,805
33,745
13,772
40,621
8,679
158,314
68,065
34,827
14,091
41,331
8,991
158,931
66,878
36,460
14,125
41,468
8,754
167,356
77,464
35,358
13,697
40,837
7,716
153,536
65,077
33,802
13,320
41,337
7,656
153,432
63,650
35,161
13,139
41,482
7,402
United Kingdom
81 Total, all currencies
82
83
84
85
86
Negotiable CDs 3
To United States
Parent bank
Other banks in United States
Nonbanks
87 To foreigners
88 Other branches of parent bank
89
Banks
Official institutions
90
91
Nonbank foreigners
92 Other liabilities
158,732
144,385
148,599
152,075
151,593
145,448
145,619
151,596
142,398
143,800
n.a.
55,799
14,021
11,328
30,450
34,413
25,250
14,651
3,125
7,474
31,260
29,422
19,330
2,974
7,118
31,734
27,505
16,624
2,175
8,706
31,396
26,270
15,892
1,997
8,381
29,295
22,671
13,300
1,999
7,372
28,279
22,831
14,188
2,148
6,495
30,352
26,540
17,399
2,062
7,079
28,847
24,610
14,014
2,382
8,214
28,984
22,714
13,811
2,313
6,590
95,847
19,038
41,624
10,151
25,034
7,086
77,424
21,631
30,436
10,154
15,203
7,298
78,525
23,389
28,581
9,676
16,879
9,392
83,067
23,838
31,584
9,548
18,097
9,769
84,362
27,029
30,505
9,543
17,285
9,565
83,707
25,106
31,678
9,074
17,849
9,775
84,880
24,962
32,250
9,330
18,338
9,629
85,554r
28,272
31,190
8,652
17,440
9,150
80,252
24,194
31,001
8,068
16,989
8,689
83,320
23,733
34,192
7,875
17,520
8,782
131,167
117,497
112,697
109,337
108,375
101,095
101,397
108,249
99,820
99,321
94 Negotiable CDs 3
95 To United States
96
Parent bank
97
Other banks in United States
Nonbanks
98
n.a.
54,691
13,839
11,044
29,808
33,070
24,105
14,339
2,980
6,786
29,337
27,756
18,956
2,826
5,974
29,542
25,490
16,233
1,944
7,313
29,135
24,214
15,331
1,817
7,066
27,015
20,065
12,648
1,738
5,679
26,114
20,403
13,707
1,879
4,817
28,490
24,039
16,984
1,735
5,320
26,927
21,960
13,591
2,108
6,261
27,166
20,182
13,438
2,007
4,737
99 To foreigners
100
Other branches of parent bank
101
Banks
102 Official institutions
103 Nonbank foreigners
104 Other liabilities
73,279
15,403
29,320
8,279
20,277
3,197
56,923
18,294
18,356
8,871
11,402
3,399
51,980
18,493
14,344
7,661
11,482
3,624
50,441
18,043
14,114
6,953
11,331
3,864
51,056
20,455
13,073
6,914
10,614
3,970
49,932
17,868
14,251
6,658
11,155
4,083
50,855
17,790
15,056
6,724
11,285
4,025
52,645
21,305
14,491
6,015
10,834
3,075
47,491
17,289
14,123
5,685
10,394
3,442
48,921
16,689
15,855
5,655
10,722
3,052
93 Total payable in U.S. dollars
Bahamas and Caymans
105 Total, all currencies
152,083
146,811
142,055
132,122
138,944
134,238
137,526
143,082
134,060
131,306
106 Negotiable CDs 3
107 To United States
108 Parent bank
109 Other banks in United States
110 Nonbanks
n.a.
111,299
50,980
16,057
44,262
615
102,955
47,162
13,938
41,855
610
103,813
44,811
12,778
46,224
634
94,128
40,757
10,738
42,633
567
98,897
47,014
12,868
39,015
565
96,636
47,862
11,131
37,643
470
99,585
44,417
11,952
43,216
527
102,012
49,981
10,986
41,045
683
96,840
43,470
11,144
41,226
784
94,436
43,597
11,131
39,708
111 To foreigners
Other branches of parent bank
112
113
Banks
114 Official institutions
Nonbank foreigners
115
116 Other liabilities
38,445
14,936
11,876
1,919
11,274
2,339
40,320
16,782
12,405
2,054
9,079
2,921
35,053
14,075
10,669
1,776
8,533
2,579
35,139
13,731
10,318
2,144
8,946
2,221
37,340
15,882
9,991
2,427
9,040
2,140
34,827
13,561
9,636
2,468
9,162
2,210
35,216
13,368
10,216
2,386
9,246
2,255
38,447
15,918
10,158
2,834
9,537
2,096
35,427
13,574
8,964
2,665
10,224
2,110
33,841
12,539
8,534
2,577
10,191
2,245
148,278
143,582
138,322
127,918
134,606
130,075
133,256
138,733
130,084
127,252
117 Total payable in U.S. dollars
3. Before June 1984, liabilities on negotiable CDs were included in liabilities to
the United States or liabilities to foreigners, according to the address of the initial
purchaser.
Summary Statistics
3.15
A57
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1986
Item
1984
1985
May
1 Total1
Aug.
Sept.
Oct.
NOV.p
178,356
190,159
194,562
198,784
203,364
209,608
211,053
211,014
26,089
59,976
26,734
53,252
24,911
63,614
26,142
65,790
25,143
70,721
25,482
74,766
29,544
75,095
27,188
75,457
27,743
75,132
69,019
5,800
19,668
77,108
3,550
17,712
82,501
1,800
17,333
84,113
1,800
16,717
85,561
1,300
16,059
85,622
1,300
16,194
87,546
1,300
16,123
91,052
1,300
16,056
91,152
1,300
15,687
69,776
1,528
8,561
93,954
1,264
5,469
By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries 6
74,418
1,314
11,141
86,459
1,824
3,200
76,405
1,502
10,595
96,487
1,718
3,452
79,641
1,529
11,046
97,359
1,717
3,270
81,524
1,627
11,242
100,070
1,525
2,796
83,874
1,535
10,801
102,362
1,958
2,834
87,261
1,626
10,353
105,598
1,864
2,906
88,590
1,699
10,047
105,336
1,715
3,666
87,747
1,891
9,116
105,421
1,544
5,295
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.
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
July
180,552
By type
2 Liabilities reported by banks in the United States2
3 U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
4 Marketable
5 Nonmarketable 4
6 U.S. securities other than U.S. Treasury securities3
1
8
9
10
11
12
June
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
1986
1985
Item
1982
1983
1984
Dec.
1 Banks' own liabilities
2 Banks' own claims
3 Deposits
4 Other claims
5 Claims of banks' domestic customers'
1. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the accounts
of their domestic customers.
4,844
7,707
4,251
3,456
676
5,219
7,231
2,731
4,501
1,059
8,586
11,984
4,998
6,986
569
Mar.
June
Sept.
15,368
16,161
8,304
7,857
580
21,364
19,736
11,318
8,418
1,426
24,077
20,985
11,313
9,672
1,385
29,227
24,516
13,818
10,698
1,660
NOTE. Data on claims exclude foreign currencies held by U.S. monetary
authorities,
A58
3.17
International Statistics • March 1987
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Millions of dollars, end of period
Reported by Banks in the United States
1986
Holder and type of liability
1983
1984
1985
May
June
July
Aug/
Sept.
Oct.
Nov.?
1 All foreigners
369,607
407,306
435,726
444,528
457,350
469,720
486,514
505,464
497,042
511,738
2 Banks' own liabilities
3 Demand deposits
4 Time deposits 1
5 Other 2
6 Own foreign offices 3
279,087
17,470
90,632
25,874
145,111
306,898
19,571
110,413
26,268
150,646
341,070
21,107
117,278
29,305
173,381
342,074
19,651
114,055
31,686
176,683
345,663
21,332
115,246
31,712
177,373
342,267
19,607
117,010
30,650
174,999
355,003
20,277
122,322
33,026
179,378
372,368
21,388
125,840
36,834
188,307
362,332
21,730
123,787
36,043
180,773
377,496
24,772
125,605
36,146
190,973
90,520
68,669
100,408
76,368
94,656
69,133
102,454
80,192
111,687
82,701
127,453
86,789
131,511
89,586
133,095
90,467
134,710
91,305
134,242
90,351
17,467
4,385
18,747
5,293
17,964
7,558
13,917
8,346
14,729
14,257
14,702
25,962
14,507
27,417
14,430
28,198
15,085
28,319
14,360
29,530
11 Nonmonetary international and regional
organizations7
5,957
4,454
5,821
4,519
3,441
3,974
5,253
3,038
3,902
4,315
12 Banks' own liabilities
13 Demand deposits
14 Time deposits 1
15 Other 2
4,632
297
3,584
750
2,014
254
1,267
493
2,621
85
2,067
469
2,388
99
1,109
1,179
891
79
551
262
1,857
156
1,209
492
4,090
165
3,233
691
1,721
180
1,243
299
2,426
175
1,939
312
2,944
135
2,299
511
16 Banks' custody liabilities4
17 U.S. Treasury bills and certificates
18 Other negotiable and readily transferable
instruments 6
19 Other
1,325
463
2,440
916
3,200
1,736
2,131
1,282
2,550
1,619
2,118
991
1,163
129
1,317
218
1,476
308
1,371
262
862
0
1,524
0
1,464
0
849
0
918
13
1,126
0
1,033
1
1,099
0
1,162
6
1,104
5
20 Official institutions8
79,876
86,065
79,985
88,526
91,932
95,863
100,247
104,640
102,645
102,875
21 Banks' own liabilities
22 Demand deposits
23 Time deposits'
24 Other 2
19,427
1,837
7,318
10,272
19,039
1,823
9,374
7,842
20,835
2,077
10,949
7,809
22,018
1,810
9,850
10,358
22,928
2,131
10,347
10,450
22,044
1,609
10,116
10,319
22,710
1,582
9,892
11,236
26,821
1,895
10,918
14,008
24,064
1,840
10,389
11,835
25,165
2,188
11,286
11,691
25 Banks' custody liabilities4
26
U.S. Treasury bills and certificates 5
27 Other negotiable and readily transferable
instruments 6
28 Other
60,448
54,341
67,026
59,976
59,150
53,252
66,508
63,614
69,004
65,790
73,820
70,721
77,538
74,766
77,819
75,095
78,581
75,457
77,710
75,132
6,082
25
6,966
84
5,824
75
2,754
139
2,9%
218
2,892
207
2,624
148
2,524
199
2,920
204
2,446
132
226,887
248,893
275,589
275,047
284,637
291,827
301,549
318,552
310,650
324,575
205,347
60,236
8,759
37,439
14,038
145,111
225,368
74,722
10,556
47,095
17,071
150,646
252,723
79,341
10,271
49,510
19,561
173,381
251,126
74,444
9,036
46,780
18,627
176,682
255,673
78,300
10,277
48,480
19,544
177,373
251,779
76,780
9,180
49,418
18,181
174,999
260,950
81,573
9,304
52,811
19,458
179,378
276,496
88,188
9,295
58,006
20,887
188,307
268,436
87,663
9,714
55,890
20,058
180,773
282,324
91,351
11,626
57,537
22,189
190,973
21,540
10,178
23,525
11,448
22,866
9,832
23,922
10,841
28,964
10,688
40,048
10,934
40,598
10,543
42,057
10,635
42,214
10,601
42,250
10,491
7,485
3,877
7,236
4,841
6,040
6,994
5,451
7,629
5,448
12,828
5,585
23,529
5,526
24,530
5,538
25,883
5,532
26,081
5,468
26,291
40 Other foreigners
56,887
67,894
74,331
76,436
77,339
78,055
79,465
79,233
79,845
79,972
41 Banks' own liabilities
42
Demand deposits
43
Time deposits
44
Other 2
49,680
6,577
42,290
813
60,477
6,938
52,678
861
64,892
8,673
54,752
1,467
66,543
8,705
56,316
1,521
66,170
8,845
55,869
1,456
66,587
8,663
56,267
1,657
67,253
9,227
56,386
1,641
67,331
10,018
55,673
1,640
67,407
10,000
55,569
1,838
67,063
10,824
54,483
1,756
7,207
3,686
7,417
4,029
9,439
4,314
9,893
4,454
11,169
4,604
11,468
4,143
12,212
4,149
11,903
4,519
12,439
4,939
12,909
4,465
3,038
483
3,021
367
4,636
489
4,862
577
5,367
1,198
5,099
2,226
5,325
2,738
5,268
2,115
5,472
2,028
5,342
3,102
10,346
10,476
9,845
6,269
6,419
6,492
6,569
6,554
6,759
6,607
7 Banks' custody liabilities4
8
U.S. Treasury bills and certificates 5
9 Other negotiable and readily transferable
instruments 6
10 Other
29 Banks
9
30 Banks' own liabilities
Unaffiliated foreign banks
31
32
Demand deposits
Time 2
deposits 1
33
Other
34
35 Own foreign offices 3
36 Banks' custody liabilities4
37 U.S. Treasury bills and certificates
38 Other negotiable and readily transferable
instruments 6
39 Other
45 Banks' custody liabilities4
46
U.S. Treasury bills and certificates
47
Other negotiable and readily transferable
instruments 6
48
Other
49 MEMO: Negotiable time certificates of
deposit in custody for foreigners
1. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due to head office or parent foreign bank, and
foreign branches, agencies or wholly owned subsidiaries of head office or parent
foreign bank.
4. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
5. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments, and the Bank for
International Settlements.
9. Excludes central banks, which are included in "Official institutions."
Nonbank-Reported
3.17
Data
Continued
1986
Area and country
1983
1984
1985
May
June
July
Aug.
Sept/
Oct.
Nov.P
1 Total
369,607
407,306
435,726
444,528
457,350
469,720
486,514
505,464
497,042
511,738
2 Foreign countries
363,649
402,852
429,905
440,009
453,909
465,745
481,261
502,426
493,140
507,423
138,072
585
2,709
466
531
9,441
3,599
520
8,462
4,290
1,673
373
1,603
1,799
32,246
467
60,683
562
7,403
65
596
153,145
615
4,114
438
418
12,701
3,358
699
10,762
4,731
1,548
597
2,082
1,676
31,740
584
68,671
602
7,192
79
537
164,114
693
5,243
513
496
15,541
4,835
666
9,667
4,212
948
652
2,114
1,422
29,020
429
76,728
673
9,635
105
523
165,795
897
5,425
523
514
19,423
4,964
552
7,875
4,183
850
796
1,879
1,299
26,848
434
83,885
556
4,165
34
693
166,382
1,013
5,224
519
484
19,862
4,639
657
8,918
4,224
710
795
2,069
1,118
27,812
586
82,314
661
3,997
89
690
163,016
988
5,343
560
449
20,129
5,646
604
8,828
4,682
497
711
1,894
1,267
28,455
310
78,193
542
3,366
48
506
166,145
1,035
5,114
643
365
21,469
5,290
570
9,269
4,495
542
791
1,979
944
29,064
285
79,947
482
3,277
32
553
173,930
1,073
6,165
483
406
21,339
5,559
623
8,836
4,952
576
758
2,082
1,293
29,207
448
86,215
562
2,724
84
545
173,487
1,018
5,859
478
606
21,243
6,624
646
8,757
4,827
654
738
2,297
1,032
29,832
401
84,298
515
2,938
25
699
175,576
1,235
6,669
604
448
21,641
5,856
755
9,304
4,374
512
685
2,196
1,301
30,576
1,263
84,058
544
3,087
16
452
3 Europe
4
Austria
Belgium-Luxembourg
6
Denmark
7
Finland
8 France
9 Germany
10 Greece
11
Italy
17 Netherlands
13 Norway
14 Portugal
IS
Spain
16
17 Switzerland
18 Turkey
19 United Kingdom
20
Yugoslavia
Other Western Europe 1
21
77
U.S.S.R
23 Other Eastern Europe 2
16,026
16,059
17,427
21,257
22,926
22,359
23,933
24,150
24,340
25,753
140,088
4,038
55,818
2,266
3,168
34,545
1,842
1,689
8
1,047
788
109
10,392
3,879
5,924
1,166
1,244
8,632
3,535
153,381
4,394
56,897
2,370
5,275
36,773
2,001
2,514
10
1,092
896
183
12,303
4,220
6,951
1,266
1,394
10,545
4,297
167,856
6,032
57,657
2,765
5,373
42,674
2,049
3,104
11
1,239
1,071
122
14,060
4,875
7,514
1,167
1,552
11,922
4,668
161,405
6,075
53,680
2,016
5,542
42,116
2,223
3,053
7
1,166
1,097
201
13,153
4,798
7,042
1,132
1,703
11,712
4,689
169,650
6,229
60,081
2,513
5,185
43,278
2,270
3,419
8
1,262
1,108
185
13,633
4,358
6,686
1,254
1,664
11,734
4,783
181,737
6,336
60,764
2,201
5,134
55,552
2,227
3,334
7
1,196
1,123
184
12,985
4,382
6,639
1,158
1,687
12,058
4,770
187,780
6,096
67,096
2,195
5,179
55,614
2,139
3,315
8
1,232
1,140
177
13,609
4,383
6,390
1,149
1,636
11,668
4,753
196,704
6,069
69,123
2,199
5,359
61,635
2,426
3,373
7
1,260
1,129
187
13,137
4,775
6,415
1,256
1,589
11,709
5,056
187,982
5,748
64,106
1,918
5,361
58,708
2,403
3,775
6
1,216
1,126
151
13,209
4,645
6,524
1,167
1,608
11,392
4,917
189,384
5,202
62,613
2,549
4,684
61,465
2,325
3,873
6
1,199
1,129
153
13,488
4,705
6,729
1,145
1,752
11,528
4,837
58,570
71,187
72,280
83,817
86,977
91,669
96,021
100,058
99,331
107,025
249
4,051
6,657
464
997
1,722
18,079
1,648
1,234
747
12,976
9,748
1,153
4,990
6,581
507
1,033
1,268
21,640
1,730
1,383
1,257
16,804
12,841
1,607
7,786
8,067
712
1,466
1,601
23,077
1,665
1,140
1,358
14,523
9,276
973
12,687
8,745
577
1,758
1,671
29,689
1,336
1,331
1,155
14,537
9,355
1,469
13,683
8,656
695
1,416
1,725
31,325
1,414
1,306
1,068
14,581
9,638
1,795
14,331
8,934
562
1,572
1,731
36,286
1,392
1,363
1,104
12,739
9,861
1,185
15,608
9,026
685
1,474
1,686
38,221
1,251
1,458
1,080
13,227
11,121
1,938
16,129
9,349
651
1,611
2,109
39,951
1,282
1,400
1,100
13,056
11,481
1,585
16,534
8,663
755
1,530
1,986
41,311
1,446
1,707
1,115
12,045
10,654
1,450
17,540
9,347
701
1,541
2,380
46,155
1,128
1,720
1,085
12,994
10,984
2,827
671
84
449
87
620
917
3,396
647
118
328
153
1,189
961
4,883
1,363
163
388
163
1,494
1,312
4,227
910
92
414
105
1,490
1,216
4,291
1,079
87
414
92
1,463
1,156
4,041
820
93
609
65
1,368
1,086
4,227
1,088
82
438
60
1,371
1,189
4,158
843
91
318
80
1,625
1,203
3,973
640
86
347
79
1,623
1,199
4,022
710
84
264
96
1,593
1,276
64 Other countries
65 Australia
66 All other
8,067
7,857
210
5,684
5,300
384
3,347
2,779
568
3,507
2,744
763
3,682
2,943
739
2,924
2,173
751
3,155
2,459
696
3,425
2,785
640
4,026
2,943
1,083
5,662
4,286
1,376
67 Nonmonetary international and regional
organizations
68
International
69 Latin American regional
70 Other regional5
5,957
5,273
419
265
4,454
3,747
587
120
5,821
4,806
894
121
4,519
3,669
748
102
3,441
2,471
845
126
3,974
2,714
922
338
5,253
4,147
916
190
3,038
1,759
972
307
3,902
2,748
957
197
4,315
3,232
927
157
24 Canada
?5 Latin America and Caribbean
76 Argentina
27
Bahamas
78
Bermuda
79 Brazil
30
British West Indies
31
Chile
3?
33 Cuba
34
35 Guatemala
36 Jamaica
37
38
Netherlands Antilles
39 Panama
40
Peru
41
Uruguay
47
Venezuela
43
Other Latin America and Caribbean
44
China
45
46
47
48
49
50
51
52
53
54
55
56
Korea
Philippines
Thailand
Middle-East oil-exporting countries 3
Other Asia
57
58
59
60
61
62
63
Egypt
Morocco
South Africa
Zaire
Oil-exporting countries 4
Other Africa
Taiwan
Hong Kong
India
Israel
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."
A59
A60
3.18
International Statistics • March 1987
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1986
Area and country
1983
1984
1985
May
June
July
Aug.
Sept.
Oct.
NOV.P
1 Total
391,312
400,162
401,608
394,667
403,843
403,494
403,729
416,577'
406,280
417,502
2 Foreign countries
391,148
399,363
400,577
394,259
403,387
403,002
403,309
416,376'
405,907
417,331
91,927
401
5,639
1,275
1,044
8,766
1,284
476
9,018
1,267
690
1,114
3,573
3,358
1,863
812
47,364
1,718
477
192
1,598
99,014
433
4,794
648
898
9,157
1,306
817
9,119
1,356
675
1,243
2,884
2,230
2,123
1,130
56,185
1,886
596
142
1,389
106,413
598
5,772
706
823
9,124
1,267
991
8,848
1,258
706
1,058
1,908
2,219
3,171
1,200
62,566
1,964
998
130
1,107
100,903
501
5,696
882
866
8,861
1,176
723
6,806
1,384
746
850
1,986
2,239
3,134
1,649
59,332
1,928
491
489
1,164
104,441
609
7,243
750
983
9,455
1,095
629
7,474
1,407
905
776
2,001
2,478
3,553
1,856
58,224
2,005
1,253
568
1,176
100,321
619
6,113
856
1,041
9,583
1,426
622
7,266
1,427
614
789
1,863
2,906
2,617
1,709
56,249
1,902
1,102
504
1,112
100,323
694
6,990
783
961
9,483
1,181
660
5,981
1,254
698
757
1,749
2,404
3,306
1,649
57,846
1,852
521
528
1,026
106,735'
654
6,574'
807
1,085
10,209'
1,599'
706
6,797
2,039'
732
734
1,995
2,487
2,665
1,586'
61,997'
1,871'
791
405'
1,002
103,616
619
7,689
796
1,111
9,512
1,320
626
7,679
2,114
711
699
1,922
2,375
2,661
1,612
58,092
1,886
799
296
1,097
106,348
748
8,149
764
1,176
9,499
1,654
792
8,323
2,424
712
682
1,722
2,343
3,574
3,527
56,610
1,897
600
225
927
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
16,341
16,109
16,482
17,910
18,270
18,303
19,401
18,112
19,532
20,338
25 Latin America and Caribbean
26 Argentina
27 Bahamas
Bermuda
28
29
Brazil
30 British West Indies
31
Chile
32 Colombia
33 Cuba
Ecuador
34
Guatemala 3
35
36 Jamaica 3
37
Mexico
38 Netherlands Antilles
39 Panama
40
Peru
41
Uruguay
42
Venezuela
43 Other Latin America and Caribbean
205,491
11,749
59,633
566
24,667
35,527
6,072
3,745
0
2,307
129
215
34,802
1,154
7,848
2,536
977
11,287
2,277
207,862
11,050
58,009
592
26,315
38,205
6,839
3,499
0
2,420
158
252
34,885
1,350
7,707
2,384
1,088
11,017
2,091
202,674
11,462
58,258
499
25,283
38,881
6,603
3,249
0
2,390
194
224
31,799
1,340
6,645
1,947
960
10,871
2,067
193,625
11,921
52,537
238
25,271
37,072
6,537
2,820
0
2,382
112
218
31,493
1,075
5,919
1,757
951
11,326
1,997
200,733
12,079
57,075
274
24,855
40,043
6,507
2,789
0
2,397
136
244
31,399
1,086
5,860
1,738
931
11,304
2,015
202,204
12,282
56,250
432
24,915
41,923
6,514
2,776
0
2,366
113
209
31,168
996
6,280
1,703
927
11,364
1,985
197,866
12,009
55,453
373
24,762
39,836
6,449
2,642
0
2,375
127
209
30,839
1,060
5,862
1,677
936
11,289
1,969
205,579'
12,119
61,705'
320
24,856
40,360'
6,489'
2,633'
0
2,387
135
224
31,037
1,133
6,377
1,600
1,051
11,177'
1,977'
196,413
12,243
53,557
452
24,738
39,535
6,514
2,674
2
2,418
122
247
31,024
972
6,094
1,625
930
11,180
2,086
196,512
12,017
53,858
556
25,880
39,248
6,526
2,665
1
2,395
138
216
30,659
911
5,354
1,618
943
11,014
2,513
44 Asia
China
Mainland
45
Taiwan
46
47
Hong Kong
48 India
49
Indonesia
50 Israel
51 Japan
52
Korea
53 Philippines
54 Thailand
55
Middle East oil-exporting countries 4
56 Other Asia
67,837
66,316
66,212
73,965
72,033
74,253
77,792
78,073'
78,558
86,209
292
1,908
8,489
330
805
1,832
30,354
9,943
2,107
1,219
4,954
5,603
710
1,849
7,293
425
724
2,088
29,066
9,285
2,555
1,125
5,044
6,152
639
1,535
6,796
450
698
1,991
31,249
9,226
2,224
845
4,298
6,260
703
1,446
8,315
420
736
1,766
38,629
9,176
2,263
716
3,948
5,845
567
1,238
7,526
440
675
1,772
38,524
8,977
2,393
706
3,680
5,535
779
1,089
8,445
372
720
1,567
40,902
8,900
2,168
711
2,919
5,680
526
1,637
8,632
375
729
1,541
43,327
8,476
2,128
736
2,764
6,921
758
1,903
8,883
355
689
1,622'
42,751
7,846'
2,148
636
3,724
6,758'
758
1,528
8,337
316
694
1,630
45,167
7,023
2,071
611
3,396
7,027
793
1,812
7,598
327
722
1,615
53,265
6,569
1,972
595
3,778
7,162
57 Africa
58
Egypt
59 Morocco
60
South Africa
61
Zaire
Oil-exporting countries 5
62
Other
63
6,654
747
440
2,634
33
1,073
1,727
6,615
728
583
2,795
18
842
1,649
5,407
721
575
1,942
20
630
1,520
4,890
619
640
1,743
17
417
1,455
4,971
740
642
1,705
17
415
1,452
4,817
701
615
1,661
17
413
1,410
4,693
633
617
1,683
21
445
1,294
4,651'
593
636
1,607
33'
511
1,271
4,531
577
621
1,549
35
545
1,203
4,737
560
621
1,586
27
690
1,253
64 Other countries
65
Australia
All other
66
2,898
2,256
642
3,447
2,769
678
3,390
2,413
978
2,966
2,050
916
2,939
2,023
916
3,103
2,159
945
3,232
2,293
940
3,225'
2,221'
1,004
3,259
2,143
1,115
3,187
1,985
1,202
164
800
1,030
408
456
493
420
372
171
24 Canada
67 Nonmonetary international and regional
organizations 6
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
3. Included in "Other Latin America and Caribbean" through March 1978.
200
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."
Nonbank-Reported
3.19
Data
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
1986
Type of claim
1983
1984
1985
May
1 Total
July
June
426,2X5
391,312
57,569
146,393
123,837
47,126
76,711
63,514
400,162
62,237
156,216
124,932
49,226
75,706
56,777
401,608
60,507
174,261
116,654
48,372
68,282
50,185
34,903
2,969
32,916
3,380
28,881
3,335
28,483
3,475
23,805
19,332
20,294
6,214
4,715
28,487
28,328
40,714
37,399
417,502
60,603
189,401
120,025
52,592
67,433
47,474
n.a.
n.a.
27,172
46,337
406,280
60,707
182,548
117,386
53,068
64,319
45,639
5,769
37,103
Nov.?
22,337
5,732
Oct.
31,849
3,743
37,715
9 Claims of banks' domestic customers2 . .
433,078
5,870
Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices'
Unaffiliated foreign banks
Deposits
Other
All other foreigners
432,326
Sept/
26,064
2
3
4
5
6
7
8
430,489
Aug.
394,667
59,972
173,094
112,522
47,493
65,029
49,079
403,843
60,622
181,867
112,996
47,041
65,955
48,358
448,426
403,494
60,667
181,590
114,101
49,326
64,775
47,137
403,729
59,947
182,151
115,922
52,410
63,512
45,708
416,577
60,603
193,355
116,808
52,178
64,630
45,811
11 Negotiable and readily transferable
12 Outstanding collections and other
13 MEMO: C u s t o m e r liability o n
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.
3.20
47,351
47,464
46,200
48,575
44,515
3. Principally negotiable time certificates of deposit and bankers acceptances.
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.
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
1985
Maturity; by borrower and area
1982
1983
1986
1984
Dec.
8
9
10
11
12
13
June
Sept.
228,150
1
2
3
4
5
6
7
Mar.
By borrower
Maturity of 1 year or less'
Foreign public borrowers
All other foreigners
Maturity of over 1 year'
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less'
Europe
Canada
Latin America and Caribbean
Africa
All other 2
Maturity of over 1 year'
14 Europe
15 Canada
16 Latin America and Caribbean
17
18 Africa
19 All other 2
1. Remaining time to maturity.
243,715
243,952
227,903
221,177
222,255
224,317
173,917
21,256
152,661
54,233
23,137
31,095
176,158
24,039
152,120
67,557
32,521
35,036
167,858
23,912
143,947
76,094
38,695
37,399
160,824
26,302
134,522
67,078
34,512
32,567
152,696
23,845
128,851
68,481
36,681
31,800
152,247
23,183
129,065
70,008
37,177
32,830
154,731
22,392
132,339
69,586
38,115
31,471
50,500
7,642
73,291
37,578
3,680
1,226
56,117
6,211
73,660
34,403
4,199
1,569
58,498
6,028
62,791
33,504
4,442
2,593
56,585
6,401
63,328
27,966
3,753
2,791
53,462
5,899
59,538
28,034
3,331
2,433
57,929
6,043
57,134
25,772
3,297
2,073
59,331
5,968
57,814
26,713
3,038
1,866
11,636
1,931
35,247
3,185
1,494
740
13,576
1,857
43,888
4,850
2,286
1,101
9,605
1,882
56,144
5,323
2,033
1,107
7,634
1,805
50,674
4,502
1,538
926
7,783
1,925
52,165
4,251
1,634
722
7,934
2,256
53,572
4,034
1,497
714
7,285
1,861
54,147
3,990
1,479
824
2. Includes nonmonetary international and regional organizations.
A61
A62
3.21
International Statistics • March 1987
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks 1 - 2
Billions of dollars, end of period
1984
Area or country
1982
1985
1986
1983
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
Sept.?
436.1
433.9
406.4
405.7
405.5
396.8
394.9
391.9
394.3
390.9
391.4
179.6
13.1
17.1
12.7
10.3
3.6
5.0
5.0
72.1
10.4
30.2
167.8
12.4
16.2
11.3
11.4
3.5
5.1
4.3
65.3
8.3
29.9
147.5
9.8
14.3
10.0
9.7
3.4
3.5
3.9
57.1
8.1
27.7
148.1
8.7
14.1
9.0
10.1
3.9
3.2
3.9
60.3
7.9
27.1
153.0
9.3
14.5
8.9
10.0
3.8
3.1
4.2
65.4
9.1
24.7
146.7
8.9
13.5
9.6
8.6
3.7
2.9
4.0
65.7
8.1
21.7
152.0
9.5
14.8
9.8
8.4
3.4
3.1
4.1
67.1
7.6
24.3
148.5
9.3
12.3
10.5
9.8
3.7
2.8
4.4
64.6
7.0
24.2
156.4
8.3
13.8
11.2
8.5
3.5
2.9
5.4
68.5
6.2
28.1
159.8
9.0
15.1
11.5
9.3
3.4
2.9
5.6
68.9
6.8
27.4
158.6
8.5
14.6
12.5
8.1
3.9
2.7
4.8
70.1
6.1
27.4
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
33.5
1.9
2.4
2.2
3.0
3.3
1.5
7.5
1.4
2.3
3.7
4.3
36.0
1.9
3.4
2.4
2.8
3.3
1.5
7.1
1.7
1.8
4.7
5.4
36.2
1.8
2.9
1.9
3.2
3.2
1.6
6.9
2.0
1.7
5.0
6.1
33.6
1.6
2.2
1.9
2.9
3.0
1.4
6.5
1.9
1.7
4.5
6.0
32.8
1.6
2.1
1.8
2.9
2.9
1.4
6.4
1.9
1.7
4.2
6.1
32.3
1.6
1.9
1.8
2.9
2.9
1.3
5.9
2.0
1.8
3.9
6.2
32.0
1.7
2.1
1.8
2.8
3.4
1.4
6.1
2.1
1.7
3.3
5.6
30.4
1.6
2.4
1.6
2.6
2.9
1.3
5.8
1.9
2.0
3.2
5.0
31.6
1.6
2.5
1.9
2.5
2.7
1.1
6.4
2.3
2.4
3.2
4.9
30.6
1.7
2.4
1.6
2.6
3.0
1.0
6.4
2.5
2.1
3.1
4.2
29.4
1.7
2.3
1.7
2.3
2.7
1.0
6.7
2.1
1.6
3.1
4.2
25 OPEC countries3
26 Ecuador
27 Venezuela
28 Indonesia
29 Middle East countries
30 African countries
26.9
2.2
10.5
2.9
8.5
2.8
28.4
2.2
9.9
3.4
9.8
3.0
24.4
2.1
9.2
3.2
7.3
2.5
24.9
2.2
9.3
3.3
7.9
2.3
24.5
2.2
9.3
3.3
7.4
2.3
22.8
2.2
9.3
3.1
6.1
2.2
22.7
2.2
9.0
3.1
6.2
2.3
21.6
2.1
8.9
3.0
5.5
2.0
20.7
2.2
8.7
3.3
4.8
1.8
20.6
2.1
8.8
3.0
5.0
1.7
20.0
2.1
8.7
2.8
4.7
1.7
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
106.5
110.8
111.6
111.8
110.8
110.0
107.8
105.1
103.5
101.4
99.6
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
8.9
22.9
6.3
3.1
24.2
2.6
4.0
9.5
23.1
6.4
3.2
25.8
2.4
4.2
9.:
26.3
7.1
2.9
26.0
2.2
3.9
8.7
26.3
7.0
2.9
25.7
2.2
3.9
8.6
26.4
7.0
2.8
25.5
2.2
3.8
8.6
26.6
6.9
2.7
25.3
2.1
3.7
8.9
25.5
6.6
2.6
24.4
1.9
3.5
8.9
25.6
7.0
2.7
24.2
1.8
3.4
8.9
25.7
7.0
2.3
24.0
1.7
3.3
9.2
25.3
7.1
2.2
23.8
1.6
3.3
9.3
25.2
7.1
2.0
23.8
1.5
3.4
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.2
5.3
.5
2.3
10.7
2.1
6.3
1.6
1.1
.3
5.2
.9
1.9
11.2
2.8
6.1
2.2
1.0
.5
5.1
1.0
1.7
10.3
2.9
5.9
1.8
.9
.7
5.1
.9
1.8
10.6
2.7
6.0
1.8
1.1
.7
5.3
.9
1.7
10.4
2.7
6.1
1.7
1.1
.3
5.5
.9
2.3
10.0
2.8
6.0
1.6
.9
1.1
5.1
1.1
1.5
10.4
2.7
6.0
1.6
.9
.5
4.5
1.2
1.6
9.4
2.4
5.7
1.4
1.0
.6
4.3
1.2
1.3
9.5
2.2
5.6
1.3
.9
.6
3.7
1.3
1.6
8.6
2.0
5.7
1.1
.8
.6
4.3
1.3
1.4
7.3
2.1
5.4
1.0
.7
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa4
1.2
.7
.1
2.4
1.5
.8
.1
2.3
1.2
.8
.1
1.9
1.2
.8
.1
2.1
1.1
.8
.1
2.2
1.0
.8
.1
2.0
1.0
.9
.1
2.0
1.0
.9
.1
1.9
.9
.9
.1
1.9
.9
.9
.1
1.7
.7
.9
.1
1.6
52 Eastern Europe
53 U.S.S.R
54 Yugoslavia
55 Other
6.2
.3
2.2
3.7
5.3
.2
2.4
2.8
4.5
.2
2.3
2.1
4.4
.1
2.3
2.0
4.3
.2
2.2
1.9
4.3
.3
2.2
1.8
4.6
.2
2.4
1.9
4.2
.1
2.2
1.8
4.0
.3
2.0
1.7
4.0
.3
2.0
1.7
3.3
.1
1.9
1.4
56 Offshore banking centers
57 Bahamas
58 Bermuda
59 Cayman Islands and other British West Indies
60 Netherlands Antilles
61 Panama5
62 Lebanon
63 Hong Kong
64 Singapore
65 Others 6
66.0
19.0
.9
12.8
3.3
7.5
.1
13.3
9.1
.0
68.9
21.7
.9
12.2
4.2
5.8
.1
13.8
10.3
.0
65.1
23.3
1.0
11.1
3.1
5.6
.1
11.6
9.4
.0
65.6
21.5
.9
11.8
3.4
6.7
.1
11.4
9.8
.0
63.2
20.1
.7
12.3
3.3
5.5
.1
11.4
9.9
.0
63.9
21.1
.9
12.1
3.2
5.4
.1
11.4
9.7
.0
58.8
16.6
.8
12.3
2.3
6.1
.0
11.4
9.4
.0
65.4
21.4
.7
13.4
2.3
6.0
.1
11.5
9.9
.0
61.5
21.5
.7
11.3
2.3
5.9
.1
11.4
8.4
.0
57.2
17.3
.4
12.8
2.3
5.5
.1
9.4
9.3
.0
62.6
20.0
.5
13.2
1.9
6.8
.1
10.4
9.7
.0
66 Miscellaneous and unallocated7
17.5
16.8
17.1
17.3
16.9
16.9
17.3
16.9
16.7
17.2
17.8
31 Non-OPEC developing countries
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. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
3. 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).
4. Excludes Liberia.
5. Includes Canal Zone beginning December 1979.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.
Nonbank-Reported
3.22
Data
A63
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States'
Millions of dollars, end of period
1986
1985
Type, and area or country
1982
1984
1983
June
Sept.
JuneP
Mar.
Dec.
1 Total
27,512
25,346
29,357
24,574
25,256
27,230
25,635
24,222
2 Payable in dollars
3 Payable in foreign currencies
24,280
3,232
22,233
3,113
26,389
2,968
21,899
2,675
22,408
2,848
23,994
3,236
22,022
3,613
20,692
3,530
By type
4 Financial liabilities
5 Payable in dollars
6 Payable in foreign currencies
11,066
8,858
2,208
10,572
8,700
1,872
14,509
12,553
1,955
11,528
9,543
1,985
11,815
9,824
1,991
13,005
10,955
2,050
12,328
10,205
2,123
11,117
9,177
1,940
7 Commercial liabilities
8 Trade payables
9 Advance receipts and other liabilities...
16,446
9,438
7,008
14,774
7,765
7,009
14,849
7,005
7,843
13,046
5,797
7,249
13,441
5,694
7,747
14,225
6,685
7,540
13,307
5,598
7,710
13,105
5,503
7,602
15,423
1,023
13,533
1,241
13,836
1,013
12,356
690
12,584
857
13,039
1,186
11,817
1,490
11,516
1,590
6,501
505
783
467
711
792
3,102
5,742
302
843
502
621
486
2,839
6,728
471
995
489
590
569
3,297
5,944
351
865
474
604
566
2,835
6,568
367
849
493
624
593
3,351
7,270
329
857
419
745
676
3,924
6,971
338
851
371
630
702
3,736
6,705
288
701
262
651
561
3,960
10
11
12
13
14
15
16
17
18
Payable in dollars
Payable in foreign currencies
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
19
Canada
746
764
863
850
826
760
753
287
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,751
904
14
28
1,027
121
114
2,596
751
13
32
1,041
213
124
5,086
1,926
13
35
2,103
367
137
3,106
1,107
10
27
1,734
32
3
2,619
1,145
4
23
1,234
28
3
3,152
1,120
4
29
1,814
15
3
2,788
954
13
26
1,610
20
4
2,404
859
14
27
1,362
30
3
27
28
29
Asia
Japan
Middle East oil-exporting countries 2 ..
1,039
715
169
1,424
991
170
1,777
1,209
155
1,584
994
147
1,767
1,136
82
1,790
1,173
82
1,799
1,192
78
1,660
1,189
43
30
Africa
17
0
19
0
14
0
14
0
14
0
12
0
12
0
12
0
12
27
41
30
22
21
4
49
3,831
52
598
468
346
367
1,027
3,245
62
437
427
268
241
732
4,001
48
438
622
245
257
1,095
3,461
53
423
428
284
349
730
3,897
56
431
601
386
289
858
4,074
62
453
607
364
379
976
3,915
66
382
546
545
251
957
3,761
58
357
512
587
283
861
31
32
33
34
35
36
37
38
39
40
Oil-exporting countries 3
All other 4
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
1,495
1,841
1,975
1,494
1,383
1,449
1,442
1,351
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,570
16
117
60
32
436
642
1,473
1
67
44
6
585
432
1,871
7
114
124
32
586
636
1,225
12
77
90
1
492
309
1,262
2
105
120
15
415
311
1,088
12
77
58
44
430
212
1,097
26
210
64
7
256
364
1,304
10
294
107
35
235
488
48
49
50
Asia
Japan
Middle East oil-exporting countries 2 ' 5 .
8,144
1,226
5,503
6,741
1,247
4,178
5,285
1,256
2,372
5,246
1,219
2,396
5,353
1,567
2,109
6,046
1,799
2,829
5,384
2,039
2,171
5,068
2,095
1,731
51
52
Africa
Oil-exporting countries 3
753
277
553
167
588
233
631
265
572
235
587
238
486
148
569
215
53
All other 4
651
921
1,128
988
975
982
983
1,053
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.
A64
International Statistics • March 1987
3.23
CLAIMS ON UNAFFILIATED FOREIGNERS
United States 1
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1985
Type, and area or country
1982
1986
1984
1983
June
Sept.
Dec.
Mar.
Jun e?
1 Total
28,725
34,911
29,901
26,750
28,610
28,085
30,927
32,519
2 Payable in dollars
3 Payable in foreign currencies
26,085
2,640
31,815
3,096
27,304
2,597
24,121
2,629
25,743
2,866
25,783
2,302
28,740
2,187
30,337
2,182
By type
4 Financial claims
5 Deposits
6
Payable in dollars
/
Payable in foreign currencies
8 Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
17,684
13,058
12,628
430
4,626
2,979
1,647
23,780
18,496
17,993
503
5,284
3,328
1,956
19,254
14,621
14,202
420
4,633
3,190
1,442
16,695
12,839
12,283
556
3,856
2,375
1,480
19,203
15,315
14,611
704
3,889
2,351
1,538
18,099
14,852
14,237
615
3,248
2,213
1,035
21,540
18,146
17,689
457
3,394
2,301
1,093
23,324
20,034
19,479
555
3,290
2,269
1,021
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
11,041
9,994
1,047
11,131
9,721
1,410
10,646
9,177
1,470
10,055
8,688
1,367
9,406
7,932
1,475
9,986
8,696
1,290
9,387
8,086
1,301
9,195
7,858
1,337
14
15
10,478
563
10,494
637
9,912
735
9,463
592
8,782
624
9,333
652
8,750
637
8,589
606
4,873
15
134
178
97
107
4,064
6,488
37
150
163
71
38
5,817
5,762
15
126
224
66
66
4,864
5,477
15
51
175
46
16
4,900
6,463
12
132
158
127
53
5,736
6,327
10
184
223
61
74
5,522
6,859
10
217
172
61
166
5,986
8,877
11
257
148
17
177
8,051
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
4,377
5,989
3,988
3,756
4,037
3,256
4,024
4,464
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
7,546
3,279
32
62
3,255
274
139
10,234
4,771
102
53
4,206
293
134
8,216
3,306
6
100
4,043
215
125
6,616
2,204
6
96
3,747
206
100
7,603
2,315
5
92
4,632
201
73
7,697
2,685
6
78
4,440
180
48
9,934
3,500
2
77
5,904
178
43
9,151
3,251
17
75
5,359
176
42
698
153
15
764
297
4
961
353
13
640
281
6
969
725
6
696
475
4
621
350
2
723
499
2
158
48
147
55
210
85
111
25
104
31
103
29
87
27
89
25
31
159
117
95
26
21
14
20
3,826
151
474
357
350
360
811
3,670
135
459
349
334
317
809
3,801
165
440
374
335
271
1,063
3,680
212
408
375
301
376
950
3,235
158
360
336
286
208
779
3,533
175
426
346
284
284
898
3,387
148
384
396
221
248
793
3,304
131
390
414
237
221
668
31
32
33
34
35
36
37
38
39
40
41
42
43
Japan
Middle East oil-exporting countries 2
Africa
Oil-exporting countries 3
All other
4
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
52
53
54
55
56
57
633
Japan
Middle East oil-exporting countries 2
Africa
Oil-exporting countries3
All other
4
829
1,021
1,065
1,100
1,023
1,060
970
2,526
21
261
258
12
775
351
2,695
8
190
493
7
884
272
2,052
8
115
214
7
583
206
1,803
11
65
193
29
468
181
1,660
18
62
211
7
416
149
1,753
13
93
206
6
510
157
1,599
27
82
231
7
388
172
1,590
24
148
194
24
320
180
3,050
1,047
751
3,063
1,114
737
3,073
1,191
668
2,707
954
593
2,712
884
541
2,982
1,016
638
2,606
801
630
2,649
846
691
588
140
588
139
470
134
464
137
434
131
437
130
491
167
447
171
417
286
229
336
264
257
244
235
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.
Securities Holdings and Transactions
3.24
A65
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1986
1986
Transactions, and area or country
1984
1985
Jan.Nov.
June
May
July
Aug.
Sept.
Oct.
NOV.P
U.S. corporate securities
STOCKS
1
2
Foreign purchases
Foreign sales
3
Net purchases, or sales (—)
4
5
6
7
8
9
10
11
1?
N
14
15
16
17
13,268
11,258
2,856
344
81,995
77,054
133,913
117,022
13,244
10,388
-2,980
4,941
16,890
12,045
10,615
12,206
10,948
10,954
12,284
12,010
12,076
2,010
1,430
1,258
-1,330
-66
-32
Foreign countries
-3,109
4,857
17,178
2,814
464
2,075
1,470
1,303
-1,187
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
-3,077
-405
-50
-357
-1,542
-677
1,691
495
-1,992
-378
-22
175
2,057
-438
730
-123
-75
1,665
356
1,718
238
296
24
168
9,014
349
317
922
1,502
4,469
669
2,803
709
3,414
280
289
1,571
99
99
236
376
563
44
489
117
472
43
78
192
219
-174
97
-134
38
131
60
-236
288
-3
32
576
182
-130
52
-198
481
214
269
181
830
30
-23
824
105
-42
50
44
521
97
108
78
376
-1
-13
587
30
9
36
70
462
93
145
58
346
-13
86
-1,123
-92
-104
-19
-405
-481
-125
154
-51
16
39
-97
-482
-69
-3
-50
-246
-113
26
365
-92
80
23
48
129
84
-287
42
-121
-65
-40
-45
-143
-34
39,296
26,399
86,587
42,439
111,190
64,463
12,044
5,252
8,964
5,686
8,937
5,679
9,420
5,348
10,160
5,585
9,712
5,527
9,739
6,517
Other countries
Nonmonetary international and
regional organizations
BONDS
18
19
11,176
10,832
59,834
62,814
2
Foreign purchases
Foreign sales
20
Net purchases, or sales ( - )
12,897
44,149
46,727
6,792
3,278
3,259
4,072
4,575
4,185
3,222
21
Foreign countries
12,600
44,244
45,806
6,696
2,798
3,197
4,077
4,871
4,457
2,903
77
73
74
75
76
77
78
79
30
31
37
33
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
11,697
207
1,724
100
643
8,429
-62
376
-1,230
1,817
1
0
40,047
210
2,001
222
3,987
32,762
190
498
-2,631
6,091
11
38
36,202
356
-232
336
4,640
31,095
396
1,367
-2,693
10,410
13
111
6,221
83
205
89
456
5,631
54
142
-186
464
-2
3
2,763
-6
-3
-37
490
2,214
55
63
-632
480
3
66
2,395
6
-91
-39
180
2,213
85
250
-718
1,177
-3
11
2,484
20
-81
98
564
1,917
110
160
-40
1,329
5
29
3,386
-29
26
51
30
3,414
2
64
-169
1,586
6
-4
3,475
0
82
-55
265
3,177
88
101
-33
819
-3
11
2,102
328
-108
113
198
1,416
154
67
-355
949
3
-15
34
Nonmonetary international and
regional organizations
297
-95
921
96
480
61
-4
-296
-273
319
Foreign securities
35
36
37
Stocks, net purchases, or sales ( - )
Foreign purchases
Foreign sales
-1,101
14,816
15,917
-3,894
20,851
24,746
-1,515
45,268
46,783
-221
3,454
3,675
-238
3,775
4,013
404
4,310
3,907
-83
4,610
4,694
676
5,091
4,415
1,262
6,319
5,057
390
4,149
3,758
38
39
40
Bonds, net purchases, or sales ( - )
Foreign purchases
Foreign sales
-3,930
56,017
59,948
-3,996
81,214
85,210
-2,639
149,520
152,160
188
13,491
13,303
1,540
15,632
14,091
359
13,559
13,200
1,232
14,086
12,854
-2,231
15,182
17,412
2,151
16,239
14,088
-612
12,666
13,278
41
Net purchases, or sales (—), of stocks and bonds . . . .
-5,031
-7,891
-4,154
-33
1,302
762
1,149
-1,555
3,413
-222
42
Foreign countries
-4,642
-8,954
-4,834
-106
1,122
438
1,090
-1,492
3,083
-225
Latin America and Caribbean
-8,655
542
2,460
1,356
-108
-238
-9,887
-1,682
1,845
658
75
38
-16,278
-618
3,327
9,703
49
-1,017
208
82
363
-746
3
-16
-1,332
16
742
1,639
3
55
-683
245
278
659
9
-70
-714
263
127
1,337
1
75
-3,379
111
351
1,852
3
-430
-645
88
499
3,201
-1
-58
-984
-109
83
802
4
-21
-389
1,063
680
73
180
324
59
-63
330
3
43
44
45
46
47
48
49
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).
2. Includes state and local government securities, and securities of U.S.
government agencies and corporations. Also includes issues of new debt securi-
ties sold abroad by U.S. corporations organized to finance direct investments
abroad.
A66
3.25
International Statistics • March 1987
MARKETABLE U.S. TREASURY BONDS A N D NOTES
Millions of dollars
Foreign Transactions
1986
1986
Country or area
1984
1985
Jan.Nov.
May
June
Aug.
July
Sept.
Oct.
Nov.''
Transactions, net purchases or sales ( - ) during period 1
1 Estimated total 2
21,501
29,047
23,745
-2,132
3,112
-254
752
4,993'
3,093
2 Foreign countries 2
16,496
28,591
26,258
-252
2,230
2,705
2,215
3,997'
2,778
237
11,014
287
2,929
449
40
656
5,188
1,466
0
1,586
4,145
476
1,917
269
976
760
-1,954
1,701
0
-188
16,064
267
8,152
1,341
368
779
3,650
1,507
0
577
1,436
39
468
-31
236
365
698
-339
0
908
2,562
82
357
-64
16
349
698
1,125
0
-302
2,544
-46
818
1,756
42
-278
610
-358
0
67
2,442
180
1,050
-64
-25
52
1,207
43
0
105
-685
239
1,133
-313
85
-53
-1,970
195
0
-198
3,135
4
2,560
112
-6
449
153
-136
0
-230
-629
-53
716
38
-70
-457
-288
-515
0
19
1,418
14
536
869
2,431
6,289
-67
114
4,312
238
2,343
1,731
19,899
17,920
112
311
805
-99
1,035
-131
7,794
6,439
-41
1,058
-954
36
372
-1,363
-1,617
-1,148
-2
-22
-460
-170
-290
0
515
223
-5
-80
28
-72
96
5
-137
273
6
198
-37
-294
255
2
-133
683
-1
-160
220
266
32
-78
4,848'
4,395
11
-200
-219
69
-314
26
-58
-453
-13
163
75
-139
6
208
288
623
2
482
5,009
4,612
0
457
-420
18
-2,513
-2,818
157
-1,880
-1,889
0
882
899
5
-2,959
-2,804
0
-1,462
-1,511
0
996'
890
39
314
365
-5
-1,868
-1,964
0
16,496
505
15,992
28,591
8,088
20,503
26,258
13,997
12,263
-252
157
-409
2,230
1,612
619
2,705
1,448
1,257
2,215
61
2,154
3,997'
1,877'
2,119'
2,778
3,506
-727
237
99
138
-6,270
-101
-1,581
7
-1,470
5
-14
1
-290
0
14
2
-239
-1
-205
2
-377
-1
-1,005
1
3 Europe 2
4
Belgium-Luxembourg
5 Germany 2
6
Netherlands
7
Sweden
8
Switzerland 2
9
United Kingdom
10 Other Western Europe
11
Eastern Europe
12 Canada
13
14
15
16
17
18
19
20
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
-1,630
MEMO
24 Foreign countries 2
25
Official institutions
26
Other foreign 2
27
28
Oil-exporting countries
Middle East 3
Africa 4
1. Estimated official and private transactions in marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based on
monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. 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,
Interest and Exchange Rates
3.26
A67
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Country
Percent
Aug. 1985
May 1986
Mar. 1981
Dec. 1986
Oct. 1983
Country
Month
effective
4.0
Austria..
Belgium .
Brazil...
Canada..
Denmark
8.0
49.0
8.47
7.0
Percent
France 1
Germany, Fed. Rep. of
Italy
Japan
Netherlands
1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts
3.27
Rate on Dec. 31, 1986
Rate on Dec. 31, 1986
Rate on Dec. 31, 1986
Country
7.25
3.5
12.0
3.0
4.5
Dec. 1986
Mar. 1986
May 1986
Oct. 1986
Mar. 1986
Percent
Month
effective
8.0
Norway
Switzerland
United Kingdom 2 .
Venezuela
Month
effective
June 1983
Mar. 1983
4.0
Oct. 1985
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.
FOREIGN SHORT-TERM INTEREST RATES
Percent per annum, averages of daily figures
1986
Country, or type
1984
1985
1986
June
1
2
3
4
5
6
7
8
9
10
July
Aug.
Sept.
Oct.
Nov.
Dec.
Eurodollars
United Kingdom
Canada
Germany
Switzerland
10.75
9.91
11.29
5.96
4.35
8.27
12.16
9.64
5.40
4.92
6.70
10.87
9.18
4.58
4.19
6.95
9.70
8.72
4.59
4.96
6.54
9.91
8.45
4.61
4.80
6.06
9.79
8.50
4.56
4.30
5.88
10.05
8.38
4.48
4.13
5.88
11.08
8.45
4.56
3.96
5.96
11.12
8.39
4.67
3.88
6.23
11.30
8.34
4.80
4.08
Netherlands
France
Italy
Belgium
Japan
6.08
11.66
17.08
11.41
6.32
6.29
9.91
14.86
9.60
6.47
5.56
7.68
12.60
8.04
4.96
5.90
7.23
11.78
7.27
4.64
5.69
7.13
11.70
7.25
4.62
5.28
7.09
11.18
7.25
4.68
5.17
7.07
10.84
7.25
4.71
5.32
7.38
10.85
7.29
4.75
5.48
7.51
11.05
7.38
4.39
6.03
7.92
11.40
7.39
4.40
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.
A68
3.28
International Statistics • March 1987
FOREIGN EXCHANGE RATES
Currency units per dollar
1986
Country/currency
1984
1985
1986
July
1
2
3
4
5
6
7
Australia/dollar1
Austria/schilling
Belgium/franc
Brazil/cruzeiro
Canada/dollar
China, P.R./yuan
Denmark/krone
8
9
10
11
12
13
14
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Ireland/pound1
15
16
17
18
19
20
21
Italy flira
Japan/yen
Malaysia/rinegit
Netherlands/guilder
New Zealand/dollar*
Norway/krone
Portugal/escudo
22
23
24
25
26
27
28
29
30
31
Singapore/dollar
South Africa/rand1
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound1
Aug.
Sept.
Oct.
Nov.
Dec.
87.937
20.005
57.749
1841.50
1.2953
2.3308
10.354
70.026
20.676
59.336
6205.10
1.3658
2.9434
10.598
67.093
15.260
44.662
13.051
1.3896
3.4615
8.0954
62.91
15.117
44.304
13.84
1.3808
3.6435
8.0635
61.23
14.502
42.701
13.84
1.3885
3.7129
7.7657
62.21
14.349
42.315
13.84
1.3872
3.7150
7.7278
63.83
14.111
41.635
13.98
1.3885
3.7257
7.5607
64.45
14.251
42.069
14.10
1.3863
3.7314
7.6444
65.95
13.996
41.381
14.54
1.3801
3.7314
7.5235
6.0007
8.7355
2.8454
112.73
7.8188
11.348
108.64
6.1971
8.9799
2.9419
138.40
7.7911
12.332
106.62
5.0721
6.9256
2.1704
139.93
7.8037
12.597
134.14
5.0744
6.9323
2.1517
138.40
7.8123
12.508
139.00
4.9377
6.7215
2.0621
134.68
7.8003
12.567
134.67
4.9190
6.6835
2.0415
135.07
7.8026
12.676
134.53
4.8684
6.5628
2.0054
135.44
7.7999
12.848
135.89
4.9576
6.6206
2.0243
139.12
7.7974
13.076
134.64
4.8980
6.5296
1.9880
140.13
7.7931
13.149
136.78
1756.10
237.45
2.3448
3.2083
57.837
8.1596
147.70
1908.90
238.47
2.4806
3.3184
49.752
8.5933
172.07
1491.16
168.35
2.5830
2.4484
52.456
7.3984
149.80
1478.31
158.61
2.6455
2.4236
53.176
7.4800
148.67
1420.33
154.18
2.6121
2.3242
50.068
7.3534
146.17
1410.23
154.73
2.6174
2.3050
47.950
7.3429
146.83
1387.67
156.47
2.6245
2.2663
50.392
7.3611
147.24
1401.08
162.85
2.6131
2.2870
51.382
7.5401
149.54
1379.44
162.05
2.5966
2.2470
51.339
7.5294
148.61
2.1325
69.534
807.91
160.78
25.428
8.2706
2.3500
39.633
23.582
133.66
2.2008
45.57
861.89
169.98
27.187
8.6031
2.4551
39.889
27.193
129.74
2.1782
43.952
884.61
140.04
27.933
7.1272
1.7979
37.837
26.314
146.77
2.1861
39.04
888.59
137.58
28.065
7.0715
1.7445
38.119
26.204
150.71
2.1601
38.39
886.45
134.11
28.187
6.9365
1.6616
37.422
26.093
148.61
2.1680
43.36
883.06
134.10
28.297
6.9191
1.6537
36.885
26.120
146.98
2.1777
44.42
879.22
133.43
28.407
6.8901
1.6433
36.647
26.129
142.64
2.1922
44.37
873.54
136.10
28.471
6.9683
1.6858
36.438
26.278
142.38
2.1900
44.94
868.43
134.49
28.532
6.9081
1.6647
36.001
26.239
143.93
138.19
143.01
112.22
110.38
107.50
107.15
106.58
107.90
106.54
MEMO
32 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.
3. Currency reform.
NOTE. Averages of certified noon buying rates in New York for cable transfers.
Data in this table also appear in the Board's G.5 (405) release. For address, see
inside front cover.
A69
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE TO TABULAR
Symbols and
c
e
p
r
*
PRESENTATION
Abbreviations
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when
about half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000
when the smallest unit given is millions)
General
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed
issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
STATISTICAL
obligations of the Treasury. "State and local government"
also includes municipalities, special districts, and other political subdivisions.
In some of the tables details do not add to totals because of
rounding.
RELEASES
List Published Semiannually,
with Latest Bulletin
Reference
Issue
December 1986
Anticipated schedule of release dates for periodic releases
Page
A87
August
December
March
January
September
November
December
March
May
July
December
February
A70
A68
A68
A70
A70
A70
A76
A70
A70
A70
A70
A70
SPECIAL TABLES
Published Irregularly, with Latest Bulletin Reference
Assets
Assets
Assets
Assets
Assets
Assets
Assets
Assets
Terms
Terms
Terms
Terms
and liabilities of commercial banks, March 31, 1983
and liabilities of commercial banks, June 30, 1983
and liabilities of commercial banks, September 30, 1983
and liabilities of commercial banks, December 31, 1985
and liabilities of U.S. branches and agencies of foreign banks,
and liabilities of U.S. branches and agencies of foreign banks,
and liabilities of U.S. branches and agencies of foreign banks,
and liabilities of U.S. branches and agencies of foreign banks,
of lending at commercial banks, February 1986
of lending at commercial banks, May 1986
of lending at commercial banks, August 1986
of lending at commercial banks, November 1986
Special tables begin on next page.
December 31, 1985
March 31, 1986
June 30, 1986
September 30, 1986
1983
1983
1984
1987
1986
1986
1986
1987
1986
1986
1986
1987
A70
4.30
Special Tables • March 1987
ASSETS A N D LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 19861
Millions of dollars
All states2
Item
1 Total assets4
Total
including
IBFs
365,106
California
New York
IBFs
only3
184,308
Total
including
IBFs
Total
including
IBFs
IBFs
only3
Illinois
Total
including
IBFs
IBFs
only3
IBFs
only3
271,367
146,494
57,169
24,753
19,668
8,247
50,480
8,558
22,264
7,930
19,484
5,487
8,193
4,500
? Claims on nonrelated parties
3 Cash and balances due from depository institutions
4 Cash items in process of collection and unposted
debits
5 Currency and coin (U.S. and foreign)
6 Balances with depository institutions in United States
7
U.S. branches and agencies of other foreign banks
(including IBFs)
8
Other depository institutions in United States
(including IBFs)
9 Balances with banks in foreign countries and with
foreign central banks
Foreign branches of U.S. banks
10
Other banks in foreign countries and foreign central
11
banks
12 Balances with Federal Reserve Banks
336,737
90,145
159,871
73,726
253,164
74,935
126,589
60,709
423
21
48,893
0
n.a.
35,604
395
15
39,637
0
n.a.
28,249
5
2
5,492
0
n.a.
4,929
4
2
3,006
0
n.a.
2,120
41,218
33,304
32,771
26,107
5,207
4,819
2,675
2,082
7,675
2,300
6,866
2,142
285
110
331
38
38,978
2,205
38,123
2,108
33,186
1,820
32,460
1,753
3,028
115
3,001
114
2,430
231
2,380
206
36,774
1,830
36,015
n.a.
31,366
1,703
30,707
n.a.
2,913
31
2,887
n.a.
2,199
45
2,174
n.a.
13 Total securities and loans
199,985
81,576
142,116
62,133
33,633
13,848
12,760
3,460
25,971
5,761
8,243
n.a.
21,461
5,472
6,255
n.a.
3,189
110
1,752
n.a.
716
109
182
n.a.
2,229
n.a.
2,199
n.a.
3,053
14 Total securities, book value
15 U.S. Treasury
16 Obligations of U.S. government agencies and
corporations
17 Other bonds, notes, debentures and corporate stock
(including state and local securities)
25
n.a.
3
n.a.
1,752
604
182
17,981
8,243
13,789
6,255
13,266
7,797
3,046
2,423
1,675
828
41
806
11,941
6,907
2,752
2,282
1,561
758
41
763
599
439
69
91
13
13
0
0
473
271
159
43
43
0
0
43
174,179
165
174,014
73,367
34
73,333
120,754
99
120,656
55,897
19
55,878
30,503
59
30,444
12,111
15
12,096
12,048
4
12,044
3,278
0
3,278
6,993
57,268
32,679
29,362
3.317
67
37,789
15,316
14,112
1,204
3,442
42,130
23,373
20,571
2,803
41
25,950
8,893
7,887
1,006
1,538
10,519
6,985
6,597
388
25
8,308
4,945
4,774
172
576
3,347
2,095
2,049
46
0
2,595
1,448
1,421
26
48
24,541
702
23,839
3,901
0
22,473
691
21,782
626
25
18,731
592
18,140
2,514
0
17,056
581
16,476
570
5
3,529
97
3,432
547
0
3,363
97
3,266
41
15
1,237
14
1,223
800
0
1,147
14
1,134
3
35 Commercial and industrial loans
36 U.S. addressees (domicile)
37 Non-U .S. addressees (domicile)
38 Acceptances of other banks
39 U.S. banks
40 Foreign banks
41 Loans to foreign governments and official institutions
(including foreign central banks)
42 Loans for purchasing or carrying securities
(secured and unsecured)
43 All other loans
83,114
58,427
24,687
1,113
718
395
20,333
316
20,017
20
0
20
53,594
33,104
20,490
843
485
358
17,466
248
17,218
13
0
13
15,650
12,974
2,676
217
208
9
2,101
10
2,092
0
0
0
6,806
6,370
437
22
0
22
327
0
327
7
0
7
16,144
14,325
13,195
11,729
1,631
1,582
411
347
3,827
1,819
23
183
3,511
1,526
23
106
289
111
0
53
25
61
0
0
44 All other assets
45 Customers' liability on acceptances outstanding
46
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
47
48 Other assets including other claims on nonrelated
parties
49 Net due from related depository institutions5
50 Net due from head office and other related depository
institutions5
51 Net due from establishing entity, head offices,
and other related depository institutions5
33,342
22,996
15,278
7,717
2,895
n.a.
n.a.
n.a.
24,172
16,023
9,412
6,611
2,187
n.a.
n.a.
n.a.
7,690
6,491
5,504
987
473
n.a.
n.a.
n.a.
763
269
266
3
190
n.a.
n.a.
n.a.
10,346
28,368
2,895
24,436
8,149
18,203
2,187
19,905
1,199
6,689
473
2,489
494
184
190
53
28,368
n.a.
18,203
n.a.
6,689
n.a.
n.a.
24,436
n.a.
19,905
n.a.
2,489
n.a.
365,106
183,308
271,367
146,494
59,169
24,753
19,668
8,247
313,924
151,981
239,961
121,415
51,384
21,099 1
12,396
5,225
18 Federal funds sold and securities purchased under
agreements to resell
19 U.S branches and agencies of other foreign banks . . . .
70 Commercial banks in United States
21 Other
77 Total loans, gross
7.3 Less: Unearned income on loans
24 Equals: Loans, net
Total loans, gross, by category
75 Real estate loans
76 Loans to depository institutions
77 Commercial banks in United States (including IBFs) .
28
U.S. branches and agencies of other foreign banks .
29
Other commercial banks in United States
30 Other depository institutions in United States
(including IBFs)
31 Banks in foreign countries
3?
Foreign branches of U.S. banks
33
Other banks in foreign countries
34 Other financial institutions
52 Total liabilities
4
53 Liabilities to nonrelated parties
184
n.a.
53
U.S. Branches and Agencies
4.30
A71
Continued
Millions of dollars
All states2
Item
54 Total deposits and credit balances
55 Individuals, partnerships, and corporations
56
U.S. addressees (domicile)
57
Non-U.S. addressees (domicile)
58 Commercial banks in United States (including IBFs) .
59
U.S. branches and agencies of other foreign banks .
60
Other commercial banks in United States
61 Banks in foreign countries
62
Foreign branches of U.S. banks
63
Other banks in foreign countries
64 Foreign governments and official institutions
(including foreign central banks)
65 All other deposits and credit balances
66 Certified and official checks
67 Transaction accounts and credit balances
(excluding IBFs)
68 Individuals, partnerships, and corporations
69
U.S. addressees (domicile)
70
Non-U.S. addressees (domicile)
71 Commercial banks in United States (including IBFs) .
72
U.S. branches and agencies of other foreign banks .
Other commercial banks in United States
73
74 Banks in foreign countries
75
Foreign branches of U.S. banks
76
Other banks in foreign countries
77 Foreign governments and official institutions
(including foreign central banks)
78 All other deposits and credit balances
79 Certified and official checks
80 Demand deposits (included in transaction accounts
and credit balances)
81 Individuals, partnerships, and corporations
82
U.S. addressees (domicile)
83
Non-U.S. addressees (domicile)
84 Commercial banks in United States (including IBFs) .
85
U.S. branches and agencies of other foreign banks .
86
Other commercial banks in United States
87 Banks in foreign countries
Foreign branches of U.S. banks
88
89
Other banks in foreign countries
90 Foreign governments and official institutions
(including foreign central banks)
91 All other deposits and credit balances
92 Certified and official checks
93 Non-transaction accounts (including MMDAs,
excluding IBFs)
94 Individuals, partnerships, and corporations
95
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
96
97 Commercial banks in United States (including IBFs) .
98
U.S. branches and agencies of other foreign banks .
99
Other commercial banks in United States
100 Banks in foreign countries
101
Foreign branches of U.S. banks
102
Other banks in foreign countries
103 Foreign governments and official institutions
(including foreign central banks)
104 All other deposits and credit balances
105 IBF deposit liabilities
106 Individuals, partnerships, and corporations
107
U.S. addressees (domicile)
108
Non-U.S. addressees (domicile)
109 Commercial banks in United States (including IBFs) .
110
U.S. branches and agencies of other foreign banks .
111
Other commercial banks in United States
112 Banks in foreign countries
Foreign branches of U.S. banks
113
114
Other banks in foreign countries
115 Foreign governments and official institutions
(including foreign central banks)
116 All other deposits and credit balances
For notes see end of table.
Total
excluding
IBFs
New York
IBFs
only3
Total
excluding
IBFs
California
IBFs
only3
Total
excluding
IBFs
50,137
38,679
30,991
7,688
8,265
4,169
4,097
1,668
166
1,502
121,077
14,897
704
14,194
42,142
35,156
6,985
59,450
7,264
52,185
41,804
31,185
26,006
5,179
7,677
3,715
3,961
1,585
166
1,419
108,102
11,823
703
11,120
36,518
30,058
6,460
55,323
6,251
49,072
1,655
1,475
475
1,000
64
25
39
14
0
14
736
309
478
4,576
12
n.a.
656
282
420
4,436
2
n.a.
75
5
22
Illinois
IBFs
only3
Total
excluding
IBFs
IBFs
only3
7,173
344
0
344
3,948
3,658
290
2,840
792
2,048
2,884
2,376
2,281
96
487
415
72
3
0
3
41
0
n.a.
1
1
15
n.a.
2,001
101
0
101
1,143
999
144
742
107
635
15
0
5,550
3,308
2,283
1,025
427
132
295
972
16
956
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
4,738
2,656
1,888
768
406
129
277
914
16
898
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
172
139
92
47
4
0
4
4
0
4
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
213
193
190
3
0
0
0
2
0
2
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
290
74
478
n.a.
n.a.
n.a.
284
57
420
n.a.
n.a.
n.a.
2
1
22
n.a.
n.a.
n.a.
1
1
15
n.a.
n.a.
n.a.
4,268
2,664
1,779
886
89
9
80
802
6
796
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
3,616
2,156
1,483
672
68
6
63
746
6
740
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
90
59
30
28
4
0
4
4
0
4
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
204
184
181
3
0
0
0
2
0
2
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
204
31
478
n.a.
n.a.
n.a.
198
29
420
n.a.
n.a.
n.a.
2
0
22
n.a.
n.a.
n.a.
1
1
15
n.a.
n.a.
n.a.
44,587
35,371
28,708
6,663
7,838
4,037
3,802
696
150
546
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
37,066
28,529
28,118
4,411
7,270
3,586
3,684
671
150
521
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1,483
1,336
383
953
60
25
35
10
0
10
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
2,671
2,183
2,091
93
486
415
71
1
0
1
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
446
235
n.a.
n.a.
372
225
n.a.
n.a.
74
4
n.a.
n.a.
0
0
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
121,077
14,897
704
14,194
42,142
35,156
6,985
59,450
7,264
52,185
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
108,102
11,823
703
11,120
36,518
30,058
6,460
55,323
6,251
49,072
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
7,173
344
0
344
3,948
3,658
290
2,840
792
2,048
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
2,001
101
0
101
1,143
999
144
742
107
635
n.a.
n.a.
4,576
12
n.a.
n.a.
4,436
2
n.a.
n.a.
41
0
n.a.
n.a.
15
0
All
Special Tables • March 1987
4.30
ASSETS A N D LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 1986'—Continued
Millions of dollars
All states 2
Item
117 Federal funds purchased and securities sold under
agreements to repurchase
IIS
U.S. branches and agencies of other foreign banks . . .
119 Other commercial banks in United States
170 Other
171 Other borrowed money
172 Owed to nonrelated commercial banks in United States
(including IBFs)
173 Owed to U.S. offices of nonrelated U.S. banks
Owed to U.S. branches and agencies of
124
nonrelated foreign banks
125 Owed to nonrelated banks in foreign countries
176 Owed to foreign branches of nonrelated U.S. banks ..
Owed to foreign offices of nonrelated foreign b a n k s . . .
177
128 Owed to others
129 All other liabilities
Branch or agency liability on acceptances executed
130
and outstanding
131 Other liabilities to nonrelated parties
132 Net due to related depository institutions 5
133 Net due to head office and other related
depository institutions 5
134
Net due to establishing entity, head office, and other
related depository institutions 5
Total
including
IBFs
New York
IBFs
only3
Total
including
IBFs
Illinois
California
IBFs
only 3
Total
including
IBFs
Total
including
IBFs
IBFs
only 3
IBFs
only 3
39,408
9,617
16,561
13,231
69,631
1,360
585
128
648
27,012
29,620
6,267
11,233
12,120
35,785
846
247
95
504
10,507
7,412
2,686
3,973
753
27,382
404
274
30
100
13,161
1,813
527
1,011
275
5,077
86
42
0
44
2,965
49.972
23,145
11,779
2,163
25,893
13,249
3,743
917
20,403
8,181
7,289
1,053
2,470
993
508
65
26,827
14.297
2,172
12,125
5,361
9,616
13,988
2,137
11,851
1,246
12,644
5,863
599
5,264
4,029
2,826
5,619
565
5,054
1,145
12,222
5,786
1,076
4,709
1,193
6,236
5,783
1,076
4,707
89
1,477
2,480
427
2,053
127
443
2,445
425
2,020
12
33,672
2,532
24,650
1,960
7,762
361
621
173
26,181
7.490
n.a.
2,532
18,761
5,888
n.a.
1,960
6,897
865
n.a.
361
273
348
n.a.
173
3,021
51,181
32,327
31,406
25,079
5,785
3,654
7,272
51,181
n.a.
31,406
n.a.
5,785
n.a.
7,272
n.a.
n.a.
32,327
n.a.
25,079
n.a.
3,654
n.a.
3,021
MEMO
135 Non-interest bearing balances with commercial banks
in United States
136 Holding of commercial paper included in total loans
137 Holding of own acceptances included in commercial
and industrial loans
138 Commercial and industrial loans with remaining maturity
of one year or less
139 Predetermined interest rates
140
Floating interest rates
141 Commercial and industrial loans with remaining maturity
of more than one year
142 Predetermined interest rates
Floating interest rates
143
0
2,026
965
93
n.a.
1,812
506
93
n.a.
98
376
n.a.
44
79
0
n.a.
n.a.
3,839
n.a.
2,475
n.a.
1,104
53,271
33,790
19,481
n.a.
n.a.
n.a.
32,675
18,768
13,907
n.a.
n.a.
n.a.
10,466
8,000
2,466
29,843
9,751
20,092
n.a.
n.a.
n.a.
20,920
6,143
14,776
n.a.
n.a.
n.a.
5,184
2,132
3,052
110
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5,123
3,802
1,321
n.a.
n.a.
n.a.
1,683
791
892
n.a.
n.a.
n.a.
U.S. Branches and Agencies
4.30
A73
Continued
Millions of dollars
All states 2
Item
144 Components of total nontransaction accounts,
included in total deposits and credit balances of
nontransactional accounts, including IBFs
145 Time CDs in denominations of $100,000 or more
146 Other time deposits in denominations of $100,000
or more
147 Time CDs in denominations of $100,000 or more
with remaining maturity of more them
12 months
New York
Total
excluding
IBFs
IBFs
only3
Total
excluding
IBFs
55,931
35,416
n.a.
n.a.
47,488
29,359
6,252
n.a.
14,263
n.a.
148 Market value of securities held
150 Immediately available funds with a maturity greater than
one day included in other borrowed money
Total
excluding
IBFs
IBFs
only3
Total
excluding
IBFs
IBFs
only3
n.a.
n.a.
1,483
1,087
n.a.
n.a.
3,458
2,311
n.a.
n.a.
n.a.
183
n.a.
149
n.a.
12,248
n.a.
213
n.a.
997
n.a.
IBFs
only3
New York
Total
including
IBFs
IBFs
only3
California
IBFs
only3
Total
including
IBFs
Illinois
IBFs
only3
25,997
8,246
21,798
6,355
2,900
1,663
46,053
n.a.
25,200
n.a.
18,083
n.a.
482
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." Details may not add to totals because of rounding. This form was first
used for reporting data as of June 30, 1980, and was revised as of December 31,
1985. 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. 11, last issued on
July 10, 1980. Data in this table and in the G . l l 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. Effective December 1981, the Federal Reserve Board amended Regulations
D and Q to permit banking offices located in the United States to operate
International Banking Facilities (IBFs). As of December 31, 1985, data for IBFs
are reported in a separate column. These data are either included in or excluded
from the total columns as indicated in the headings. The notation "n.a." indicates
Illinois
5,881
All states 2
Total
including
IBFs
California
222
119
Total
including
IBFs
718
1,861
IBFs
only 3
175
n.a.
46
that no IBF data are reported for that item, either because the item is not an
eligible IBF asset or liability or because that level of detail is not reported for
IBFs. From December 1981 through September 1985, IBF data were included in
all applicable items reported.
4. Total assets and total liabilities include net balances, if any, due from or due
to related banking institutions in the United States and in foreign countries (see
footnote 5). On the former monthly branch and agency report, 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.
5. "Related banking institutions" includes the foreign head office and other
U.S. and foreign branches and agencies of the bank, the bank's parent holding
company, and majority-owned banking subsidiaries of the bank and of its parent
holding company (including subsidiaries owned both directly and indirectly).
6. In some cases two or more offices of a foreign bank within the same
metropolitan area file a consolidated report.
A74
Federal Reserve Board of Governors
PAUL A . VOLCKER,
Chairman
Vice Chairman
MARTHA R . SEGER
MANUEL H . JOHNSON,
WAYNE D . ANGELL
OFFICE
OFFICE OF STAFF DIRECTOR
MONETARY
AND FINANCIAL
OF BOARD
MEMBERS
JOSEPH R. COYNE, Assistant
to the Board
DONALD J. WINN, Assistant
to the Board
STEVEN M. ROBERTS, Assistant
to the
Chairman
BOB S. MOORE, Special Assistant
DONALD L. KOHN, Deputy Staff Director
NORMAND R.V. BERNARD, Special Assistant
OF RESEARCH
AND
STATISTICS
DIVISION
JAMES L . KICHLINE,
MICHAEL BRADFIELD, General
Counsel
J. VIRGIL MATTINGLY, JR., Deputy General Counsel
RICHARD M. ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
RICKI R. TIGERT, Assistant General Counsel
MARYELLEN A. BROWN, Assistant to the General Counsel
OFFICE
to the Board
to the Board
DIVISION
LEGAL
FOR
POLICY
OF THE
SECRETARY
WILLIAM W . WILES,
Secretary
BARBARA R. LOWREY, Associate
Secretary
JAMES MCAFEE, Associate
Secretary
Director
EDWARD C. ETTIN, Deputy
MICHAEL J. PRELL, Deputy
JARED J. ENZLER, Associate
Director
Director
Director
DAVID E. LINDSEY, Associate
Director
ELEANOR J. STOCKWELL, Associate
Director
MARTHA BETHEA, Deputy Associate
Director
THOMAS D. SIMPSON, Deputy Associate
Director
LAWRENCE SLIFMAN, Deputy Associate
Director
PETER A. TINSLEY, Deputy Associate
Director
SUSAN J. LEPPER, Assistant
Director
RICHARD D . PORTER, Assistant
Director
MARTHA S. SCANLON, Assistant
Director
JOYCE K. ZICKLER, Assistant
Director
LEVON H . GARABEDIAN, Assistant
Director
(Administration)
DIVISION
OF
CONSUMER
AND COMMUNITY
AFFAIRS
DIVISION
GRIFFITH L . GARWOOD,
GLENN E . LONEY, Assistant
ELLEN MALAND, Assistant
DOLORES S. SMITH, Assistant
DIVISION
OF
SUPERVISION
OF INTERNATIONAL
Director
Director
Director
BANKING
AND
REGULATION
E D W I N M . TRUMAN,
Director
LARRY J. PROMISEL, Senior Associate
Director
CHARLES J. SIEGMAN, Senior Associate
Director
DAVID H. HOWARD, Deputy Associate
Director
ROBERT F. GEMMILL, Staff
Adviser
DONALD B. ADAMS, Assistant
Director
PETER HOOPER III, Assistant
Director
KAREN H. JOHNSON, Assistant
WILLIAM TAYLOR,
RALPH W . SMITH, JR., Assistant
Director
FRANKLIN D . DREYER, Deputy
Director'
DON E. KLINE, Associate
Director
FREDERICK M. STRUBLE, Associate
Director
WILLIAM A. RYBACK, Deputy Associate
Director
STEPHEN C. SCHEMERING, Deputy Associate
Director
RICHARD SPILLENKOTHEN, Deputy Associate
Director
HERBERT A . BIERN, Assistant
JOE M. CLEAVER, Assistant
Director
Director
ANTHONY CORNYN, Assistant
Director
JAMES I. GARNER, Assistant
Director
JAMES D . GOETZINGER, Assistant
Director
MICHAEL G. MARTINSON, Assistant
Director
ROBERT S. PLOTKIN, Assistant
Director
SIDNEY M. SUSSAN, Assistant
Director
LAURA M. HOMER, Securities
Credit Officer
1. On loan from the Federal Reserve Bank of Chicago.
FINANCE
Director
Director
Director
A75
and Official Staff
H . ROBERT H E L L E R
OFFICE OF
STAFF DIRECTOR
FOR
S. DAVID FROST, Staff
OFFICE OF STAFF DIRECTOR
FEDERAL RESERVE
BANK
MANAGEMENT
THEODORE E. ALLISON, Staff
Director
EDWARD T. MULRENIN, Assistant Staff Director
CHARLES L. HAMPTON, Senior Technical Adviser
PORTIA W. THOMPSON, Equal Employment
Opportunity
Programs Officer
DIVISION
OF FEDERAL
BANK
OPERATIONS
Director
RESERVE
C L Y D E H . FARNSWORTH, J R . ,
DIVISION
OF
PERSONNEL
ELLIOTT C. MCENTEE, Associate
DAVID L. ROBINSON, Associate
DAVID L . SHANNON,
Director
JOHN R. WEIS, Assistant
OFFICE
OF THE
Director
FLORENCE M . Y O U N G ,
Controller
BRENT L . BOWEN, Assistant
DIVISION
Controller
OF SUPPORT
ROBERT E . FRAZIER,
SERVICES
Director
GEORGE M . LOPEZ, Assistant
Director
OFFICE OF THE EXECUTIVE
INFORMATION
RESOURCES
DIRECTOR
FOR
MANAGEMENT
ALLEN E . BEUTEL, Executive
Director
STEPHEN R. MALPHRUS, Associate
Director
DIVISION
SYSTEMS
OF HARDWARE
BRUCE M . BEARDSLEY,
AND
SOFTWARE
Director
THOMAS C. JUDD, Assistant
Director
ELIZABETH B. RIGGS, Assistant
Director
ROBERT J. ZEMEL, Assistant
Director
DIVISION
OF APPLICATIONS
STATISTICAL
SERVICES
WILLIAM R . JONES,
DEVELOPMENT
Director
DAY W. RADEBAUGH, Assistant
Director
RICHARD C. STEVENS, Assistant
PATRICIA A . WELCH, Assistant
Director
Director
Director
Director
EARL G. HAMILTON, Assistant
Director
JOHN H. PARRISH, Assistant
Director
CONTROLLER
GEORGE E . LIVINGSTON,
Director
C. WILLIAM SCHLEICHER, JR., Associate
Director
CHARLES W. BENNETT, Assistant
Director
ANNE M. DEBEER, Assistant
Director
JACK DENNIS, JR., Assistant
Director
Director
CHARLES W . WOOD, Assistant
FOR
ACTIVITIES
AND
Adviser
A76
Federal Reserve Bulletin • March 1987
Federal Open Market Committee
FEDERAL OPEN MARKET
PAUL A . VOLCKER,
COMMITTEE
E. GERALD CORRIGAN, Vice
Chairman
H . ROBERT HELLER
M A N U E L H . JOHNSON
SILAS K E E H N
W A Y N E D . ANGELL
E D W A R D G . BOEHNE
ROBERT H . BOYKIN
NORMAND R . V . BERNARD, Assistant
Secretary
MICHAEL BRADFIELD, General
Counsel
JAMES H. OLTMAN, Deputy General
JAMES L . KICHLINE,
Counsel
Economist
EDWIN M. TRUMAN, Economist
(International)
ANATOL B. BALBACH, Associate
Economist
JOHN M. DAVIS, Associate
Economist
MARTHA R . SEGER
GARY H . STERN
RICHARD G. DAVIS, Associate
THOMAS E. DAVIS, Associate
DONALD L. KOHN, Associate
DAVID E. LINDSEY, Associate
ALICIA H . MUNNELL, Associate
MICHAEL J. PRELL, Associate
CHARLES J. SIEGMAN, Associate
Economist
Economist
Economist
Economist
Economist
Economist
Economist
PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account
SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account
FEDERAL ADVISORY
COUNCIL
JOHN P. LA WARE, First District
JOHN F. MCGILLICUDDY, Second District
SAMUEL A. MCCULLOUGH, Third District
JULIEN L. MCCALL, Fourth District
JOHN G. MEDLIN, JR., Fifth District
BENNETT A. BROWN, Sixth District
CHARLES T. FISHER III, S e v e n t h District
DONALD N. BRANDIN, Eighth District
DEWALT H . ANKENY, JR., Ninth District
F. PHILLIPS GILTNER, Tenth District
GERALD W. FRONTERHOUSE, Eleventh District
JOHN D. MANGELS, JR., Twelfth District
HERBERT V . PROCHNOW, SECRETARY
WILLIAM J. KORSVIK, ASSOCIATE SECRETARY
Chairman
A77
and Advisory Councils
CONSUMER ADVISORY
COUNCIL
EDWARD N. LANGE, Seattle, Washington, Chairman
STEVEN W. HAMM, Columbia, South Carolina, Vice Chairman
E D W I N B . BROOKS, JR., R i c h m o n d , V i r g i n i a
JONATHAN A . B R O W N , W a s h i n g t o n , D . C .
JUDITH N . B R O W N , E d i n a , M i n n e s o t a
MICHAEL S . CASSIDY, N e w Y o r k , N e w Y o r k
THERESA FAITH CUMMINGS, S p r i n g f i e l d , I l l i n o i s
RICHARD B . D O B Y , D e n v e r , C o l o r a d o
RICHARD H . F I N K , W a s h i n g t o n , D . C .
NEIL J. FOGARTY, Jersey City, N e w Jersey
STEPHEN GARDNER, D a l l a s , T e x a s
KENNETH A . HALL, J a c k s o n , M i s s i s s i p p i
ELENA G. HANGGI, Little Rock, Arkansas
ROBERT J. HOBBS, B o s t o n ,
Massachusetts
RAMON E. JOHNSON, Salt Lake City, Utah
ROBERT W. JOHNSON, West Lafayette, Indiana
THRIFT INSTITUTIONS
ADVISORY
TED L. SPURLOCK, Dallas, Texas
MEL R. STILLER, Boston, Massachusetts
CHRISTOPHER J. SUMNER, Salt Lake City, Utah
E D W A R D J. WILLIAMS, C h i c a g o , I l l i n o i s
MICHAEL ZOROYA, S t . L o u i s , M i s s o u r i
COUNCIL
MICHAEL R . W I S E ,
JAMIE J. JACKSON,
GERALD M . CZARNECKI, M o b i l e , A l a b a m a
JOHN C . DICUS, T o p e k a , K a n s a s
BETTY GREGG, P h o e n i x , A r i z o n a
THOMAS A. KINST, Hoffman Estates, Illinois
RAY MARTIN, LOS Angeles, California
JOHN M . KOLESAR, C l e v e l a n d , O h i o
A L A N B . LERNER, D a l l a s , T e x a s
FRED S . M C C H E S N E Y , C h i c a g o , I l l i n o i s
RICHARD L . D . MORSE, M a n h a t t a n , K a n s a s
HELEN E . NELSON, Mill V a l l e y , C a l i f o r n i a
SANDRA R . PARKER, R i c h m o n d , V i r g i n i a
JOSEPH L . PERKOWSKI, C e n t e r v i l l e , M i n n e s o t a
BRENDA L . SCHNEIDER, D e t r o i t , M i c h i g a n
JANE S H U L L , P h i l a d e l p h i a , P e n n s y l v a n i a
r, Colorado, President
, Texas, Vice President
D O N A L D F . MCCORMICK, L i v i n g s t o n , N e w J e r s e y
JANET M . PAVLISKA, A r l i n g t o n , M a s s a c h u s e t t s
HERSCHEL ROSENTHAL, M i a m i , F l o r i d a
WILLIAM G . SCHUETT, M i l w a u k e e , W i s c o n s i n
GARY L. SIRMON, Walla Walla, Washington
A78
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$10.00 per
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$ 7.50 per
$11.50 per
$12.50 per
copy.
copy.
copy.
copy.
copy.
1985.
INTRODUCTION TO FLOW OF F U N D S . 1 9 8 0 . 6 8 p p . $ 1 . 5 0 e a c h ;
10 or more to one address, $1.25 each.
PUBLIC POLICY AND CAPITAL FORMATION.
1981. 3 2 6 p p .
$13.50 each.
FEDERAL RESERVE REGULATORY SERVICE. L o o s e l e a f ; u p d a t -
ed at least monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $75.00 per
year.
Monetary Policy and Reserve Requirements Handbook.
$75.00 per year.
Securities Credit Transactions Handbook. $75.00 per year.
Federal Reserve Regulatory Service. 3 vols. (Contains all
three Handbooks plus substantial additional material.)
$200.00 per year.
Rates for subscribers outside the United States are as
follows and include additional air mail costs:
Federal Reserve Regulatory Service, $250.00 per year.
Each Handbook, $90.00 per year.
THE U . S .
ECONOMY IN AN INTERDEPENDENT WORLD:
A
MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each.
WELCOME TO THE FEDERAL RESERVE.
PROCESSING A N APPLICATION THROUGH THE FEDERAL RESERVE SYSTEM. A u g u s t 1985. 3 0 p p .
WRITING IN STYLE AT THE FEDERAL RESERVE. A u g u s t 1984.
1986. 231 pp. $15.00 per c o p y .
93 pp. $2.50 each.
INDUSTRIAL PRODUCTION—1986 EDITION. D e c e m b e r
FINANCIAL FUTURES AND OPTIONS IN THE U . S . ECONOMY.
December 1986 . 264 pp. $10.00 each.
HISTORICAL CHART BOOK. Issued annually in Sept. $1.25
each in the United States, its possessions, Canada, and
Mexico; 10 or more to one address, $1.00 each. Elsewhere, $1.50 each.
SELECTED INTEREST A N D EXCHANGE RATES—WEEKLY SE-
RIES OF CHARTS. Weekly. $21.00 per year or $.50 each in
the United States, its possessions, Canada, and Mexico;
10 or more of same issue to one address, $19.50 per year
or $.45 each. Elsewhere, $26.00 per year or $.60 each.
THE FEDERAL RESERVE ACT, and other statutory provisions
affecting the Federal Reserve System, as amended
through April 20, 1983, with Supplements covering
amendments through August 1986. 576 pp. $7.00.
REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.
A N N U A L PERCENTAGE RATE TABLES ( T r u t h in L e n d i n g —
Regulation Z) Vol. I (Regular Transactions). 1969. 100
pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each
volume $2.25; 10 or more of same volume to one
address, $2.00 each.
FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY
UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one
address, $1.50 each.
THE BANK
HOLDING COMPANY MOVEMENT TO 1978:
A
COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to
one address, $2.25 each.
1986.
440 pp. $9.00 each.
CONSUMER EDUCATION
PAMPHLETS
Short pamphlets suitable for classroom
are available without charge.
use. Multiple
copies
Alice in Debitland
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
Fair Credit Billing
Federal Reserve Glossary
A Guide to Business Credit and the Equal Credit Opportunity
Act
Guide to Federal Reserve Regulations
How to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You Use A Credit Card
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Organization and Advisory Committees
What Truth in Lending Means to You
A79
PAMPHLETS FOR FINANCIAL
INSTITUTIONS
Short pamphlets on regulatory compliance, primarily suitable for banks, bank holding companies and creditors.
Limit of 50 copies
REVIEW OF THE TECHNIQUES A N D LITERATURE,
by
Kenneth Rogoff. October 1983. 15 pp.
133. RELATIONSHIPS AMONG EXCHANGE RATES, INTERVENTION, A N D INTEREST RATES: A N EMPIRICAL IN-
VESTIGATION, by Bonnie E. Loopesko. November
1983. Out of print.
134. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION: A REVIEW OF THE LITERATURE, b y
The Board of Directors' Opportunities in Community Reinvestment
The Board of Directors' Role in Consumer Law Compliance
Combined Construction/Permanent Loan Disclosure and
Regulation Z
Community Development Corporations and the Federal Reserve
Construction Loan Disclosures and Regulation Z
Finance Charges Under Regulation Z
How to Determine the Credit Needs of Your Community
Regulation Z: The Right of Rescission
The Right to Financial Privacy Act
Signature Rules in Community Property States: Regulation B
Signature Rules: Regulation B
Timing Requirements for Adverse Action Notices: Regulation B
What An Adverse Action Notice Must Contain: Regulation B
Understanding Prepaid Finance Charges: Regulation Z
Ralph W. Tryon. October 1983. 14 pp. Out of print.
135. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION: APPLICATIONS TO C A N A D A , GERMA-
NY, AND JAPAN, by Deborah J. Danker, Richard A.
Haas, Dale W. Henderson, Steven A. Symansky, and
Ralph W. Tryon. April 1985. 27 pp. Out of print.
136. THE EFFECTS OF FISCAL POLICY ON THE U . S . ECONO-
MY, by Darrell Cohen and Peter B. Clark. January
1984. 16 pp. Out of print.
137. THE IMPLICATIONS FOR B A N K MERGER POLICY OF
FINANCIAL DEREGULATION, INTERSTATE BANKING,
A N D FINANCIAL SUPERMARKETS, b y S t e p h e n A .
Rhoades. February 1984. Out of print.
138. ANTITRUST L A W S , JUSTICE DEPARTMENT G U I D E LINES, A N D THE LIMITS OF CONCENTRATION IN L O -
CAL BANKING MARKETS, by James Burke. June 1984.
14 pp. Out of print.
139. SOME IMPLICATIONS OF FINANCIAL INNOVATIONS IN
THE UNITED STATES, by Thomas D. Simpson and
Patrick M. Parkinson. August 1984. 20 pp.
140. GEOGRAPHIC MARKET DELINEATION: A REVIEW OF
STAFF STUDIES-. Summaries Only Printed in the
Bulletin
Studies and papers on economic and financial subjects that
are of general interest. Requests to obtain single copies of
the full text or to be added to the mailing list for the series
may be sent to Publications
Services.
THE LITERATURE, by John D. Wolken. November
1984. 38 pp. Out of print.
141. A COMPARISON OF DIRECT DEPOSIT A N D CHECK PAY-
MENT COSTS, by William Dudley. November 1984.
15 pp. Out of print.
142. MERGERS
AND
ACQUISITIONS
BY
COMMERCIAL
BANKS, 1960-83, by Stephen A. Rhoades. December
1984. 30 pp. Out of print.
Staff Studies 115-125 are out of print.
114. MULTIBANK HOLDING COMPANIES: RECENT E V I DENCE ON COMPETITION AND PERFORMANCE IN
BANKING MARKETS, by Timothy J. Curry and John T.
Rose. Jan. 1982. 9 pp.
126. DEFINITION A N D MEASUREMENT OF EXCHANGE MAR-
KET INTERVENTION, by Donald B. Adams and Dale
W. Henderson. August 1983. 5 pp. Out of print.
127. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: J A N U A R Y - M A R C H 1 9 7 5 , b y M a r g a r e t L .
Greene. August 1984. 16 pp. Out of print.
128. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: SEPTEMBER 1 9 7 7 - D E C E M B E R 1 9 7 9 , b y M a r -
garet L. Greene. October 1984. 40 pp. Out of print.
129. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: OCTOBER I98O-OCTOBER 1 9 8 1 , b y M a r g a r e t
L. Greene. August 1984. 36 pp.
130. EFFECTS OF EXCHANGE RATE VARIABILITY ON INTERNATIONAL TRADE A N D OTHER ECONOMIC VARIABLES: A REVIEW OF THE LITERATURE, b y V i c t o r i a S .
Farrell with Dean A. DeRosa and T. Ashby McCown.
January 1984. Out of print.
131. CALCULATIONS OF PROFITABILITY FOR U . S . D O L L A R DEUTSCHE MARK INTERVENTION, b y L a u r e n c e R .
Jacobson. October 1983. 8 pp.
132. TIME-SERIES STUDIES OF THE RELATIONSHIP BETWEEN EXCHANGE RATES AND INTERVENTION: A
143. COMPLIANCE COSTS A N D CONSUMER BENEFITS OF
THE ELECTRONIC F U N D TRANSFER ACT: RECENT
SURVEY EVIDENCE, by Frederick J. Schroeder. April
1985. 23 pp. Out of print.
144. SCALE ECONOMIES IN COMPLIANCE COSTS FOR C O N SUMER CREDIT REGULATIONS: T H E TRUTH IN L E N D ING A N D E Q U A L CREDIT OPPORTUNITY L A W S , b y
Gregory E. Elliehausen and Robert D. Kurtz. May
1985. 10 pp.
145. SERVICE CHARGES AS A SOURCE OF B A N K INCOME
AND THEIR IMPACT ON CONSUMERS, b y G l e n n B .
Canner and Robert D. Kurtz. August 1985. 31 pp. Out
of print.
146. THE ROLE OF THE PRIME RATE IN THE PRICING OF
BUSINESS LOANS BY COMMERCIAL BANKS, 1 9 7 7 - 8 4 ,
by Thomas F. Brady. November 1985. 25 pp.
147. REVISIONS IN THE MONETARY SERVICES (DIVISIA)
INDEXES OF THE MONETARY AGGREGATES, b y H e l e n
T. Farr and Deborah Johnson. December 1985. 42 pp.
148. T H E MACROECONOMIC A N D SECTORAL EFFECTS OF
THE ECONOMIC RECOVERY T A X A C T : SOME SIMULA-
TION RESULTS, by Flint Bray ton and Peter B. Clark.
December 1985. 17 pp.
149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS
IN BANKING BEFORE A N D AFTER ACQUISITION, b y
Stephen A. Rhoades. April 1986. 32 pp.
150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: A REEXAMINATION A N D AN APPLICATION, b y
John T. Rose and John D. Wolken. May 1986. 13 pp.
A80
1 5 1 . RESPONSES TO DEREGULATION: RETAIL DEPOSIT
PRICING FROM 1 9 8 3 THROUGH 1 9 8 5 , b y P a t r i c k I.
Mahoney, Alice P. White, Paul F. O'Brien, and Mary
M. McLaughlin. January 1987. 30 pp.
REPRINTS
OF BULLETIN
ARTICLES
Survey of Consumer Finances, 1983: A Second Report.
12/84.
Union Settlements and Aggregate Wage Behavior in the
1980s. 12/84.
The Thrift Industry in Transition. 3/85.
A Revision of the Index of Industrial Production. 7/85.
Financial Innovation and Deregulation in Foreign Industrial
Countries. 10/85.
Recent Developments in the Bankers Acceptance Market.
1/86.
Most of the articles reprinted do not exceed 12 pages.
Limit of 10 copies
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.
Survey of Consumer Finances, 1983. 9/84.
Bank Lending to Developing Countries. 10/84.
The Use of Cash and Transaction Accounts by American
Families. 2/86.
Financial Characteristics of High-Income Families. 3/86.
U. S. International Transactions in 1985. 5/86.
Prices, Profit Margins, and Exchange Rates. 6/86.
Agricultural Banks under Stress. 7/86.
Foreign Lending by Banks: A Guide to International and
U.S. Statistics. 10/86.
Recent Developments in Corporate Finance. 11/86.
A81
Index to Statistical Tables
References are to pages A3-A73 although the prefix 'A"
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 19, 20
Assets and liabilities (See also Foreigners)
Banks, by classes, 18-20
Domestic finance companies, 37
Federal Reserve Banks, 10
Financial institutions, 26
Foreign banks, U.S. branches and agencies, 21, 70-73
Nonfinancial corporations, 36
Automobiles
Consumer installment credit, 40, 41
Production, 47, 48
BANKERS acceptances, 9, 23, 24
Bankers balances, 18-20 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 34
Rates 24
Branch banks, 21, 55, 70-73
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 36
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 18
Federal Reserve Banks, 10
Central banks, discount rates, 67
Certificates of deposit, 24
Commercial and industrial loans
Commercial banks, 16, 19, 70
Weekly reporting banks, 19-21
Commercial banks
Assets and liabilities, 18-20
Commercial and industrial loans, 16, 18, 19, 20, 21, 70
Consumer loans held, by type, and terms, 40, 41
Loans sold outright, 19
Nondeposit funds, 17
Real estate mortgages held, by holder and property, 39
Time and savings deposits, 3
Commercial paper, 23, 24, 37
Condition statements (See Assets and liabilities)
Construction, 44, 49
Consumer installment credit, 40, 41
Consumer prices, 44, 50
Consumption expenditures, 51, 52
Corporations
Nonfinancial, assets and liabilities, 36
Profits and their distribution, 35
Security issues, 34, 65
Cost of living (See Consumer prices)
Credit unions, 26, 40 (See also Thrift institutions)
Currency and coin, 18
Currency in circulation, 4, 13
Customer credit, stock market, 25
DEBITS to deposit accounts, 15
Debt (See specific types of debt or
Demand deposits
Banks, by classes, 18-21
securities)
is omitted in this index
Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 22
Turnover, 15
Depository institutions
Reserve requirements, 7
Reserves and related items, 3, 4, 5, 12
Deposits (See also specific types)
Banks, by classes, 3, 18-20, 21
Federal Reserve Banks, 4, 10
Turnover, 15
Discount rates at Reserve Banks and at foreign central
banks and foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 45
Eurodollars, 24
FARM mortgage loans, 39
Federal agency obligations, 4, 9, 10, 11, 31, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation, and types and
ownership of gross debt, 30
Receipts and outlays, 28, 29
Treasury financing of surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 5, 17, 19, 20, 21, 24, 28
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, 30
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federal Savings and Loan Insurance Corporation insured
institutions, 26
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 37
Business credit, 37
Loans, 40, 41
Paper, 23, 24
Financial institutions
Loans to, 19, 20, 21
Selected assets and liabilities, 26
Float, 4
Flow of funds, 42, 43
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21, 70-73
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 19, 20
Foreign exchange rates, 68
Foreign trade, 54
Foreigners
Claims on, 55, 57, 60, 61, 62, 64
Liabilities to, 20, 54, 55, 57, 58, 63, 65, 66
A82
GOLD
Certificate account, 10
Stock, 4, 54
Government National Mortgage Association, 33, 38, 39
Gross national product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 44, 51, 52
Industrial production, 44, 47
Installment loans, 40, 41
Insurance companies, 26, 30, 39
Interest rates
Bonds, 24
Consumer installment credit, 41
Federal Reserve Banks, 6
Foreign central banks and foreign countries, 67
Money and capital markets, 24
Mortgages, 38
Prime rate, 23
Time and savings deposits, 8
International capital transactions of United States, 53-67
International organizations, 57, 58, 60, 63, 64
Inventories, 51
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 18, 19, 20, 21, 26
Commercial banks, 3, 16, 18-20, 39
Federal Reserve Banks, 10, 11
Financial institutions, 26, 39
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 18-20
Commercial banks, 3, 16, 18-20, 70
Federal Reserve Banks, 4, 5, 6, 10, 11
Financial institutions, 26, 39
Insured or guaranteed by United States, 38, 39
MANUFACTURING
Capacity utilization, 46
Production, 46, 48
Margin requirements, 25
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 5
Reserve requirements, 7
Mining production, 48
Mobile homes shipped, 49
Monetary and credit aggregates, 3, 12
Money and capital market rates, 24
Money stock measures and components, 3 , 1 3
Mortgages (See Real estate loans)
Mutual funds, 35
Mutual savings banks, 8 (See also Thrift institutions)
NATIONAL defense outlays, 29
National income, 51
OPEN market transactions, 9
PERSONAL income, 52
Prices
Consumer and producer, 44, 50
Stock market, 25
Prime rate, 23
Producer prices, 44, 50
Production, 44, 47
Profits, corporate, 35
REAL estate loans
Banks, by classes, 16, 19, 20, 39
Financial institutions, 26
Terms, yields, and activity, 38
Type of holder and property mortgaged, 39
Repurchase agreements, 5, 17, 19, 20, 21
Reserve requirements, 7
Reserves
Commercial banks, 18
Depository institutions, 3, 4, 5, 12
Federal Reserve Banks, 10
U.S. reserve assets, 54
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, 26, 39, 40, 42 (See also
Thrift institutions)
Savings banks, 26, 39, 40
Savings deposits (See Time and savings deposits)
Securities (See specific types)
Federal and federally sponsored credit agencies, 33
Foreign transactions, 65
New issues, 34
Prices, 25
Special drawing rights, 4, 10, 53, 54
State and local governments
Deposits, 19, 20
Holdings of U.S. government securities, 30
New security issues, 34
Ownership of securities issued by, 19, 20, 26
Rates on securities, 24
Stock market, selected statistics, 25
Stocks (See also Securities)
New issues, 34
Prices, 25
Student Loan Marketing Association, 33
TAX institutions, 3 (See
Thriftreceipts, federal, 29 also Credit unions, Mutual
savings banks, and Savings and loan associations)
Time and savings deposits, 3, 8, 13, 17, 18, 19, 20, 21
Trade,foreign, 54
Treasury cash, Treasury currency, 4
Treasury deposits, 4, 10, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 18, 19, 20
Treasury deposits at Reserve Banks, 4, 10, 28
U.S. government securities
Bank holdings, 18-20, 21, 30
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 10, 11, 30
Foreign and international holdings and transactions, 10,
30, 66
Open market transactions, 9
Outstanding, by type and holder, 26, 30
Rates, 24
U.S. international transactions, 53-67
Utilities, production, 48
VETERANS Administration, 38, 39
WEEKLY reporting banks, 19-21
Wholesale (producer) prices, 44, 50
YIELDS (See Interest rates)
A83
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
Joseph A. Baute
George N. Hatsopoulos
Frank E. Morris
Robert W. Eisenmenger
NEW YORK*
10045
John R. Opel
Virginia A. Dwyer
Mary Ann Lambertsen
E. Gerald Corrigan
Thomas M. Timlen
Buffalo
14240
Vice President
in charge of branch
John T. Keane
PHILADELPHIA
19105
Nevius M. Curtis
George E. Bartol III
Edward G. Boehne
Richard L. Smoot
CLEVELAND*
44101
(to be announced)
E. Mandell de Windt
Owen B. Butler
James E. Haas
Karen N. Horn
William H. Hendricks
Leroy T. Canoles, Jr.
Robert A. Georgine
Gloria L. Johnson
Wallace J. Jorgenson
Robert P. Black
Jimmie R. Monhollon
Bradley Currey, Jr.
Larry L. Prince
Margaret E. M. Tolbert
Andrew A. Robinson
Robert D. Apelgren
C. Warren Neel
Caroline K. Theus
Robert P. Forrestal
Jack Guynn
Robert J. Day
Marcus Alexis
Robert E. Brewer
Silas Keehn
Daniel M. Doyle
W.L. Hadley Griffin
Robert L. Virgil, Jr.
James R. Rodgers
Raymond M. Burse
Katherine H. Smythe
Thomas C. Melzer
Joseph P. Garbarini
John B. Davis, Jr.
Michael W. Wright
Warren H. Ross
Gary H. Stern
Thomas E. Gainor
Irvine O. Hockaday, Jr.
Robert G. Lueder
James E. Nielson
Patience S. Latting
Kenneth L. Morrison
Roger Guflfey
Henry R. Czerwinski
Bobby R. Inman
Hugh G. Robinson
Mary Carmen Saucedo
Walter M. Mischer, Jr.
Robert F. McDermott
Robert H. Boykin
William H. Wallace
Fred W. Andrew
Robert F. Erburu
Richard C. Seaver
Paul E. Bragdon
Don M. Wheeler
John W. Ellis
Robert T. Parry
Carl E. Powell
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
21203
Charlotte
28230
Culpeper
Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Charles A. Cerino
Harold J. Swart
Robert D. McTeer, Jr.
Albert D. Tinkelenberg
John G. Stoides
Delmar Harrison
Fred R. HenJames D. Hawkins
Patrick K. Barron
Jeffrey J. Wells
Henry H. Bourgaux
Roby L. Sloan
John F. Breen
James E. Conrad
Paul I. Black, Jr.
Robert F. McNellis
Wayne W. Martin
William G. Evans
Robert D. Hamilton
James L. Stull
Sammie C. Clay
J. Z. Rowe
Thomas H. Robertson
Thomas C. Warren
Angel o S. Carella
E. Ronald Liggett
Gerald R. Kelly
* Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, N e w Jersey 07016;
Jericho, New York 11753; Utica at Oriskany, N e w York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
A84
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
•jmtn*
LEGEND
— Boundaries of Federal Reserve Districts
Boundaries of Federal Reserve Branch
Territories
®
Federal Reserve Bank Cities
*
Federal Reserve Branch Cities
Federal Reserve Bank Facility
Q
Board of Governors of the Federal Reserve
System
Publications of Interest
FEDERAL RESERVE REGULATORY
SERVICE
To promote public understanding of its regulatory
functions, the Board publishes the Federal
Reserve
Regulatory Service, a three-volume looseleaf service
containing all Board regulations and related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are
published separately as handbooks pertaining to monetary policy, securities credit, and consumer affairs.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated at least monthly, and each
contains conversion tables, citation indexes, and a
subject index.
The Monetary Policy and Reserve
Requirements
Handbook contains Regulations A, D, and Q plus
related materials. For convenient reference, it also
contains the rules of the Depository Institutions
Deregulation Committee.
The Securities Credit Transactions Handbook contains Regulations G, T, U, and X, dealing with extensions of credit for the purchase of securities, together
with all related statutes, Board interpretations, rulings, and staff opinions. Also included is the Board's
list of OTC margin stocks.
The Consumer and Community Affairs
Handbook
contains Regulations B, C, E, M, Z, AA, and BB and
associated materials.
For domestic subscribers, the annual rate is $200 for
the Federal Reserve Regulatory Service and $75 for
each handbook. For subscribers outside the United
States, the price including additional air mail costs is
$250 for the Service and $90 for each Handbook. All
subscription requests must be accompanied by a check
or money order payable to Board of Governors of the
Federal Reserve System. Orders should be addressed
to Publications Services, Mail Stop 138, Federal Reserve Board, 20th Street and Constitution Avenue,
N.W., Washington, D.C. 20551.
Publications of Interest
FEDERAL RESERVE
PUBLICATIONS
CONSUMER
CREDIT
The Federal Reserve Board publishes a series of
pamphlets covering individual credit laws and topics,
as pictured below. The series includes such subjects as
how the Equal Credit Opportunity Act protects women against discrimination in their credit dealings, how
to use a credit card, and how to use Truth in Lending
information to compare credit costs.
The Board also publishes the Consumer
Handbook
to Credit Protection Laws, a complete guide to con-
Fair
Credit
Billing
1
sumer credit protections. This 44-page booklet explains how to use the credit laws to shop for credit,
apply for it, keep up credit ratings, and complain about
an unfair deal.
Protections offered by the Electronic Fund Transfer
Act are explained in Alice in Debitland. This booklet
offers tips for those using the new "paperless" systems for transferring money.
Copies of consumer publications are available free
of charge from Publications Services, Mail Stop 138,
Board of Governors of the Federal Reserve System,
Washington, D.C. 20551. Multiple copies for classroom use are also available free of charge.
•|i|Alice
Debitland
I-^tVT-T H
What
Truth In
Lending
Means
To You
@FedFRASER