Full text of Federal Reserve Bulletin : March 1988
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VOLUME 7 4 •
NUMBER 3 •
MARCH 1988
FEDERAL RESERVE
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 • Donald L. Kohn • Michael J. Prell • 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
151 MONETAR Y POLICY
CONGRESS
REPORT
TO THE
Growth of real gross national product at 33A
percent over the four quarters of 1987 outstripped most expectations, and the unemployment rate dropped below 6 percent for
the first time in this decade.
165 INDUSTRIAL
PRODUCTION
Industrial production increased an estimated 0.2 percent in December.
167
ANNOUNCEMENTS
Statement by Chairman Greenspan regarding Task Force on Market Mechanisms.
Appointment of new members to the Thrift
Institutions Advisory Council.
Preliminary figures released on income of
Federal Reserve Banks.
Revised List of Marginable OTC Stocks
now available.
Changes in Board staff.
Admission of one state bank to membership
in the Federal Reserve System.
171 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
A 6 9 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND
SPECIAL
TABLES
A70 BOARD
All
OF GOVERNORS
FEDERAL OPEN MARKET
AND STAFF; ADVISORY
A 7 4 FEDERAL RESERVE
PUBLICATIONS
All
INDEX
A 8 0 MAP OF FEDERAL
STAFF
COMMITTEE
COUNCILS
BOARD
TO STATISTICAL
A 7 9 FEDERAL RESERVE
AND OFFICES
AND
TABLES
BANKS,
RESERVE
BRANCHES,
SYSTEM
Monetary Policy Report to the Congress
ft
Report submitted
to the Congress on February
23, 1988, pursuant to the Full Employment
and
Balanced Growth Act of 1978.1
MONETAR
ECONOMIC
Y POLIC
Y AND
OUTLOOK
THE
FOR
1988
The national economy has scored major gains in
the past year. Growth of real gross national
product at 33A percent over the four quarters of
1987 outstripped most expectations, and the unemployment rate dropped below 6 percent for the
first time in this decade. With such sectors as
agriculture, mining, and manufacturing benefiting considerably from an improved competitive
position internationally, the expansion of the
economy was better balanced than in 1985-86.
Wage increases remained moderate and contributed to favorable cost trends in many sectors;
however, a rebound in oil prices, coupled with
the effects of the dollar's decline on the prices of
imported goods generally, pushed the rate of
price inflation back up to the 4 percent range by
most measures.
At times last year, soaring commodity prices
and sharp declines in the dollar and bond prices
signaled the possibility of greater inflationary
dangers. With the economy moving toward
higher levels of resource utilization, the Federal
Reserve had to be especially alert to these and
other indications of pressures that might have led
to a significant departure from the longer-run
trend toward price stability. In these circumstances, monetary policy was characterized by a
tendency toward greater restraint through last
October; this was reflected in a moderate rise in
money market interest rates, which in turn
damped growth of the monetary aggregates.
!
-
V.AfJ-J
1. The charts for the report are available on request from
Publications Services, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.
t
While M3 grew at a pace equal to the lower
bound of the range set for the year by the Federal
Open Market Committee, M2 fell short of its
range. After the plunge in the stock market in
October, the System focused its efforts primarily
on ensuring adequate liquidity in the economy,
and since that time interest rates have reversed a
good part of the rise that occurred earlier in 1987.
However, conditions in financial markets have
yet to return fully to "normal," and the edginess
of participants continues to be reflected in volatility and fairly sizable risk premia. Moreover,
there have been some signs of weakness in the
economy recently. In particular, the fourth quarter of 1987 was marked by a sharp rise in
inventories in a few sectors, and there were
indications of a slackening in labor demand early
this year. Against this backdrop, the system
eased a bit further the pressures on reserve
positions of depository institutions in the past
several weeks.
But while the Federal Reserve has had to be
responsive to the risks of an economic downturn,
it has not lost sight of the potential influence of
policy actions on longer-term trends in the economy. The United States is in the process of an
important readjustment in the balance of economic activity, after a period of several years in
which growth of domestic spending outstripped
the pace of domestic production. Over that span,
the trade balance moved into deep deficit, and
the nation began to amass a huge net external
debt. It is important to allow room for a significant improvement in our trade balance, especially given that high rates of capacity utilization
and low unemployment evident in many segments of industry suggest the need for added care
in maintaining progress toward price stability.
These considerations underlay the decisions of
the Federal Open Market Committee when it met
earlier this month to chart its monetary policy
strategy for 1988. Such considerations also must
be kept in the forefront as decisionmakers else-
152 Federal Reserve Bulletin • March 1988
where in the government set policy. In particular, continuing fiscal restraint is crucial if we are
to free up resources to finance productivityenhancing private investment while bringing
about an improved pattern of international transactions. Moreover, additional efforts at bringing
greater coherence to policies domestically and
internationally will promote greater stability in
financial markets and greater internal and external balance to the economy.
Monetary
Policy Plans for 1988
Decisions regarding the ranges for money and
credit growth in 1988 were shaped in part by the
experience of 1987. Last February, the FOMC
established annual target ranges of 5Vi to 8V2
percent for both M2 and M3; both aggregates had
increased more than 9 percent in 1986, but slower
growth was expected to be consistent with the
Committee's goal of sustaining business expansion while maintaining long-run progress toward
price stability.
1. Ranges of growth for monetary and debt
aggregates
Percent change, fourth quarter to fourth quarter
Monetary aggregate
M2
M3
Debt
1988
1987
4 to 8
4 to 8
7 to 11
5'A to 8'/2
5'/> to 8'/2
8 to 11
The deceleration proved sharper than anticipated, and in July, the Committee stated that
growth for the year around the lower ends of
these ranges, or even below them, might be
acceptable in certain circumstances; velocity had
increased in the first half of the year partly under
the influence of rising interest rates, and the
Committee agreed that if inflation forces were to
exhibit renewed strength and interest rates were
to increase further in the second half of the year,
continued slow money expansion might be appropriate. Rates did move upward again in the
late summer, including an increase of Vi percentage point in the discount rate to counter potential
inflation. M2 growth did in fact fall substantially
short of the Committee's range, at 4 percent for
the year, while M3 growth, at 5 Vi percent, was at
the lower end of its range.
The velocity of M2 has exhibited a substantial
short-run sensitivity to movements in market
rates of interest. Although deregulation has made
it possible for itf&irfitioiis to keep rates on p3pj|r
its in line with market interest rates, in practice
the adjustment of rates on many instruments has
been sluggish. In addition, savers seemingly have
become more attuned to alternative investment
opportunities, responding strongly to changes in
relative returns. As a result, the sensitivity of
money to movements in market interest rates
seems to have increased since deregulation. In
1987, as rates rose, savers had incentives to favor
market instruments, and their response held
down the growth of M2, and to a lesser extent
M3, resulting in increases in their velocities. This
outcome was in marked contrast to 1986, when
falling interest rates and inflation were reflected
in faster money growth and substantial declines
in velocity.
For 1988, the Committee set ranges of 4 to 8
percent for growth of M2 and M3. Expansion of
money within these ranges, whose midpoints are
one percentage point lower than those of the
ranges for last year, would be expected to support economic growth at a pace that is consistent
with continued external adjustment and progress
over time toward price stability. In light of the
experience of recent years, which have been
marked by large swings in velocity, the ranges
were widened somewhat. Institutional change is
a source of continuing "noise" in the relationship of money growth to economic activity; in
addition, there clearly is a strong, systematic
sensitivity of velocity to changes in market rates
of interest. This sensitivity means that even small
changes in rates occasioned by variations in
spending or prices can have sizable effects on the
quantity of money the public wishes to hold.
Combined with an uncertain outlook for the
economy and inflation, this implies that wider
ranges are needed to encompass possible outcomes for monetary growth consistent with satisfactory economic performance in 1988. Thus,
while the Committee at this time expects that
growth of M2 and M3 will be around the middle
of their ranges, the outcome could differ if significant changes in interest rates are required to
counter unanticipated weakness in aggregate demand or an intensification of inflation. In carry-
Monetary Policy Report to the Congress
ing out policy, the Committee will continue to
assess the behavior of the aggregates in light of
information about the pace of business expansion
and the source and strength of price pressures,
with attention to the performance of the dollar on
foreign exchange markets and other indicators of
the impact of monetary policy.
The Committee will continue to monitor the
growth of debt in 1988. The expansion of the debt
of domestic nonfinancial sectors is expected to
slow somewhat from the 9V2 percent pace of
1987, to around the middle portion of a 7 to 11
percent range. Growth of debt, however, appears
likely to outpace that of income, as it has for the
past several years; although the debt of governmental units may not grow as rapidly as it did last
year, continued rapid expansion of private debt
is probable, unless the current tide of corporate
restructurings ebbs.
The Committee decided not to establish a
range for Ml in 1988. It is especially difficult to
anticipate the relationship between growth in this
aggregate and the performance of the economy.
The character of this aggregate had been affected
more than the broader monetary aggregates by
deregulation, because it now contains a large
volume of interest-earning accounts that serve as
savings as well as transactions vehicles. The
rates on these accounts have proved especially
slow to respond to market rates, and inflows to
these accounts are very sensitive to differentials
in interest returns. Because flows into and out of
NOW accounts frequently involve other retail
deposits, they do not greatly affect M2 or M3, but
do result in sizable variations in Ml growth.
Moreover, demand deposits, which have demonstrated increased sensitivity to rate movements
in recent years, also are being affected by evolving practices in payments for bank services and
in business cash management.
Economic
Projections
As table 2 indicates, the uncertainties attending
the present economic situation are reflected in a
considerable range of forecasts among Committee members and other Reserve Bank presidents.
However, the central-tendency ranges shown
encompass the vast majority of forecasts and
point to growth in real GNP of 2 to 2Vi percent in
1988.
i
This pace of activity would be expected to
generate appreciable gains in employment over
the year—about in line with labor force growth—
and the civilian unemployment rate is projected
to change little on balance between now and the
end of 1988. Prices, as measured by the implicit
price deflator for GNP, are expected to rise VA to
33/4 percent, not appreciably different from the
pace last year; consumer prices likely will increase a little faster than the deflator. The central-tendency forecasts encompass the administration's projections for real GNP, but are a bit
more optimistic on prospects for price inflation.
Higher real net exports of goods and services
are expected to provide a major impetus to U.S.
economic activity in 1988. As reflected by the
rapid growth of real exports of goods and services of more than 15 percent last year, the
international competitiveness of U.S. producers
has improved significantly. By and large, U.S.
manufacturers have let the foreign currency
prices of their products decline with the depreciation of the dollar, achieving enhanced profit-
2. Economic projections for 1988
Percent
FOMC members and other FRB Presidents
Item
Range
Change, fourth quarter to fourth
Nominal GNP
Real GNP
Implicit deflator for GNP
quarter
Average level in the fourth quarter
Civilian unemployment rate
1. Overall unemployment rate.
153
Central
tendency
Administration
l
4 to 6 A
Vi to 3
2 V5 to 4
5 V* to 6
2 to 2V4
VA to 33/4
6.4
2.4
3.9
5'/> to 63A
53/4 to 6
5.8 1
154 Federal Reserve Bulletin • March 1988
ability through greater volume and aggressive
efforts to increase efficiency and control costs.
This enhanced competitiveness is expected to
provide a further boost to export growth this
year, while the increases in the relative prices of
foreign goods apparently now in train should
curb import growth. As a result, some improvement in the nation's current account balance is
anticipated this year.
In contrast, domestic demand is expected to
remain relatively subdued in 1988, as the economy moves toward a better balance between
domestic spending and domestic production.
Consumer demand probably will be damped to a
degree by the loss of household wealth associated with the decline in stock prices last fall.
Some increase in personal saving would be beneficial to the economy, as it would aid investment
and help reduce our dependence on foreign capital. However, a severe retrenchment by consumers could have a significant deflationary effect; fortunately, the indications from surveys of
household attitudes are that the sharp drop in
confidence that occurred immediately after the
October shock has been substantially reversed.
Housing activity should pick up some in coming
months as a result of the recent decline in mortgage rates. In addition, business spending on
plant and equipment should be buttressed by the
desire to build upon the progress made in regaining international competitiveness and by already
high levels of capacity utilization in a number of
major industries.
Although real GNP should rise moderately for
the year as a whole, the pattern of growth may be
uneven over time. An adjustment to the runup in
inventories that occurred in the fourth quarter of
1987 could produce relatively slow output growth
during the first part of the year. Such an adjustment appears in process in the auto sector, in
light of domestic automakers' current assembly
schedules; there may also be similar patterns in a
few other sectors, but at this time there are no
signs that deep cutbacks in production will be
necessary.
Although no significant change is anticipated in
the overall pace of inflation this year, the primary
source of the rise in prices is likely to change.
Assuming relative stability in world oil prices,
domestic energy prices should increase only a bit
this year after their sharp rebound in 1987. However, prices of non-oil imports likely will continue to rise substantially further in the wake of
the decline in the foreign exchange value of the
dollar in 1987, providing continuing impetus to
domestic inflation. This impulse to prices associated with the dollar's depreciation is an unavoidable component of the process of correcting
external imbalance, as an increase in the relative
price of foreign goods encourages exports and
discourages imports. However, if we are to maintain and extend the progress made in the 1980s
toward price stability, it is crucial that business
and labor continue to exercise restraint in price
and wage behavior. The forecasts of the FOMC
members and other Reserve Bank presidents
anticipate that such a pattern will persist through
this year. It is important, too, that the Congress
remain mindful of the effects of legislation on the
cost structure of American industry.
The forecasts of the Federal Reserve policymakers also assume further progress in reducing
the federal budget deficit. Continuing evidence of
fiscal restraint is viewed as crucial in maintaining
financial conditions that are conducive to balanced growth and to an improved pattern of
international transactions. It is critical, in that
regard, that the package of deficit-reduction measures agreed to in December for 1988 and 1989 be
fully implemented.
THE PERFORMANCE
DURING
THE PAST
OF THE
ECONOMY
YEAR
The economy completed a fifth consecutive year
of expansion in 1987, with real gross national
product increasing about VA percent over the
four quarters of the year.2 The overall growth in
output not only was greater than in 1986, but was
better balanced across industries and regions of
the country. In addition, the rise in activity
supported a net gain of more than three million
jobs last year, and the civilian unemployment
rate stood at 5.8 percent in January of this year,
2. Except where noted, all percent changes are from the
fourth quarter of the previous year to the fourth quarter of the
year indicated.
Monetary Policy Report to the Congress
nearly a percentage point below its year-ago
level.
Virtually all broad measures of inflation—after
dropping sharply in 1986—rebounded in 1987 to
about the pace seen in 1984 and 1985. In large
part, the pattern of price movements over the
past two years reflected developments in oil
markets, where prices rebounded last year after a
sharp drop in 1986. However, prices also rose
sharply for some imported consumer goods and,
at the producer level, for a number of industrial
commodities. In contrast, wage trends remained
restrained last year, although tightening labor
markets and the faster pace of inflation stemmed
the pattern of wage deceleration evident in previous years.
As suggested above, a number of sectors that
had been depressed in recent years began to
show signs of improvement in 1987. The turnaround was most pronounced in manufacturing,
where production and employment, especially in
capital goods and industrial materials industries,
picked up sharply, in response both to stronger
orders from abroad and to higher levels of capital
spending by domestic producers. However, improvement also was apparent in the domestic
energy sector, where, in response to the partial
recovery in oil prices, oil drilling retraced a small
part of its earlier precipitous decline, and in
agriculture, where higher exports and continued
federal support boosted farm income and helped
bring about some firming in land prices.
In addition, the composition of activity moved
toward a better balance between domestic spending and domestic production. Weak consumer
spending reduced the growth of domestic demand in 1987, while domestic production was
supported by the increased international competitiveness of U.S. industry as the continued improvement in productivity in manufacturing and
the moderate pace of increase in labor compensation permitted U.S. firms to lower the foreign
currency prices of their goods while expanding
profits. Indeed, much of the improvement in
economic conditions last year could be traced to
the effects of this increased competitiveness on
the volume of imports and exports. Nevertheless, the combination of a substantial increase in
the value of oil imports and rising prices of
non-oil imports more than offset an improvement
155
in real net exports, and the nominal trade deficit
widened to almost $160 billion in 1987. In addition, a further erosion of net income on investments and other service transactions pushed the
current account deficit above $160 billion.
Although economic activity rose at a brisk
pace for 1987 as a whole, the October stock
market crash added substantial uncertainty to the
prospects for continued economic growth at
year-end. The sharp drop in stock prices reduced
household wealth considerably, raising the possibility of a further slowing in consumer spending, domestic business investment, and housing
construction. It is too early to assess what the
ultimate economic effect of the stock market
decline will be, but that effect likely will be offset
at least in part by the decline in interest rates
since the crash.
• 'ft •'"
The External
Sector
•• 'W-
The dollar depreciated by 14 percent in nominal
terms over the course of 1987 relative to a
trade-weighted average of the currencies of the
other G-10 countries, leaving the dollar by the
end of the year at a level almost 45 percent below
its February 1985 peak and close to its 1980 low.
Although consumer prices in the United States
rose somewhat more rapidly on average than in
major foreign countries, the depreciation of the
dollar was almost as great in real terms. However, the dollar fell only about 6V2 percent in real
terms over the year against an average of eight
leading developing countries. The decline in the
exchange value of the dollar was resisted by
substantial official intervention purchases of dollars and an apparent movement of differentials in
long-term real interest rates between the United
States and major foreign countries in favor of the
dollar. Nonetheless, some depreciation in the
dollar evidently was seen by participants in foreign exchange markets as a necessary element in
the adjustment of the huge U.S. current account
deficit.
The U.S. merchandise trade deficit widened
for 1987 as a whole, but leveled off on balance in
the latter part of the year. The volume of imports
increased, reflecting a moderate expansion in
both oil and non-oil imports. Moreover, non-oil
import prices moved up further in response to the
156
Federal Reserve Bulletin • March 1988
continuing decline in the dollar through 1987,
and, with oil prices also up sharply, imports rose
substantially in value terms. Higher imports were
matched, to a large extent, by merchandise exports, which also grew briskly in 1987. Most of
this growth was in real terms, as prices of most
exports increased only moderately in the face of
the substantial decline in the dollar, and prices of
a few important products, such as computers,
continued to decline. Moreover, the expansion of
foreign sales last year was broadly based. Shipments abroad of capital goods showed particular
strength, and the volume of agricultural exports
also rose, as grain sales to the Soviet Union and
China increased and as foreign soybean production dropped off.
Economic expansion abroad strengthened only
slightly in 1987, providing only limited support
for the improvement in the U.S. trade position.
In the other industrial countries, economic activity picked up somewhat by the middle of the year
after a slow start, but on average real GNP grew
less than 3 percent over the year. Outside of the
industrial countries, real economic growth was
uneven and on average tended to slow from its
pace in 1986. Activity expanded at a rapid rate in
the newly industrialized countries of Asia, but
slowed in Latin America, with a sharp decline in
Brazilian growth more than offsetting a small
expansion in Mexico. In the OPEC countries,
output fell as oil export volumes were constrained in an effort to raise oil prices.
The Household
Sector
Spending by households, which had been a major
contributor to growth in past years, slowed considerably in 1987. Real consumer spending rose
less than 1 percent last year, after a 4 percent
gain in 1986. In large part, the cutback in spending reflected smaller increases in real disposable
income. Substantial employment growth and increases in farm and interest income fueled continued gains in nominal incomes, but a pickup in
consumer price inflation eroded much of that rise
and reduced real income growth to about 2
percent last year, versus V/i percent in 1986.
Moreover, although the rise in stock prices
added further to household wealth through August and supported consumption, the subsequent
stock market decline returned equity wealth to
1986 levels.
In general, consumers cut back their expenditures for both durable and nondurable goods,
while spending on services continued to increase
at about the pace of recent years. Within the
durables category, sales of new cars fell from
IV/z million units in 1986 to about WA million
units last year. Some of that dropoff can be
traced to an especially slow pace of sales in early
1987, as consumers shifted automobile purchases
into 1986 to take advantage first of major sales
incentives and then of the sales tax deduction
available only under the old tax law. Nevertheless, domestic auto sales were relatively sluggish
throughout last year, despite the availability
much of the time of special incentive programs
on a wide range of models. >
Associated with the more cautious spending
patterns of consumers in 1987 was a slowing in
household debt accumulation. Consumer installment debt decelerated sharply as households
apparently limited their borrowing because of
high debt burdens and shifted toward home equity loans in response to the reduced incentive,
under the new tax law, to finance expenditures
with nonmortgage credit. And, despite the growing popularity of home equity loans, growth of
mortgage debt also slowed last year as interest
rates moved higher. Evidence as to the ability of
consumers to service their existing liabilities in
1987 was mixed. Delinquency rates for mortgage
loans fell somewhat, but delinquency rates for
consumer loans changed little over the year while
loan charge-ofifs rose.
Housing activity in 1987 was damped by the
upward movement in mortgage rates, continued
high multifamily vacancy rates, and changes in
the tax law. Total housing starts were 1.62 million for the year as a whole, about 10 percent
below the 1986 total and the lowest in five years.
Single-family homebuilding began the year at a
brisk pace, but weakened considerably as conventional mortgage interest rates rose beginning
in April, reaching about I I V 2 percent for fixedrate loans by mid-October. Although interest
rates on mortgages have dropped substantially
since then, the stimulative impact of that change
on housing demand may have been offset thus far
by stock market losses and reduced consumer
Monetary Policy Report to the Congress
confidence. In the multifamily market, activity
also weakened over the past year, as near recordhigh vacancy rates on rental units and tax-law
changes that reduced the profitability of rental
housing continued to deter building in that sector.
The Business
Sector
Business spending on plant and equipment rose
about 33/4 percent in real terms in 1987. In large
part, investment spending was associated with
the overall pickup in economic activity. However, financial conditions also were conducive to
spending, with cash flows strong and the costs of
external capital fairly attractive through much of
the year.
For equipment, the year began on the weak
side, with first-quarter spending down sharply
after firms shifted expenditures into late 1986 to
take advantage of the favorable treatment of
investment under the depreciation provisions of
the old tax law. However, investment in equipment rebounded sharply in the second and third
quarters of last year. Much of the strength was in
the computer and other office equipment area,
where expenditures picked up in 1987 after essentially no growth in 1986. In contrast, spending
on industrial equipment was not especially brisk
despite the strong gains in manufacturing production.
Outlays for nonresidential structures also
turned up last year after a sharp drop in 1986.
Much of the turnaround in spending reflected an
improvement in the energy sector in response to
higher oil prices. In particular, oil and gas drilling
was up more than 20 percent over the year after
having dropped by 40 percent in 1986. Outside of
the energy area, spending on structures was flat,
after falling nearly 9 percent in 1986. Producers
were somewhat less reluctant to expand industrial plant facilities owing to the substantial rise
in industrial production, while office construction, although down a bit last year, held up
surprisingly well in view of the very high vacancy
rates that have persisted in recent years.
Business inventory investment generally
moved in line with sales over most of 1987, but a
sharp accumulation of stocks in the fourth quarter suggested the possibility of excess inventory
157
levels at some retailers. In manufacturing, inventories changed little on balance over the first half
of the year, but rose considerably in the second
half as activity picked up. Stockbuilding was
most evident in capital goods industries, where
orders and shipments strengthened substantially,
as producers added supplies in anticipation of
higher production levels. In the retail trade sector, inventories of goods other than automobiles
also rose over the year, pushing the inventorysales ratio to a relatively high level by December.
The accumulation was most pronounced for
home goods such as furniture and appliances and
for apparel. At auto dealers, stocks generally
rose in 1987, and, at year-end, supplies appeared
to be well above desired levels despite the prevalence of special incentive programs and production cutbacks late in the year.
Before-tax profits of nonfinancial corporations
increased substantially last year. Profits were
especially strong in manufacturing, where the
volume of shipments picked up and firming
prices and good cost control contributed to improved margins. In other industries, before-tax
profits were little changed from 1986 levels.
However, after-tax profits fell a bit on an annual
average basis last year for the sector as a whole,
as increases in corporate tax liabilities associated
with the new tax laws more than offset the
overall rise in profits.
1
'Mi'-- ••••
The Government
Sector
Last year, there was significant progress toward
reducing federal budget deficits. The FY 1987
deficit, at $150 billion, was about a third lower
than the record level of the previous year, and
the administration and Congress reached agreement on deficit reduction actions totaling more
than $30 billion in FY 1988 and about $46 billion
in FY1989. However, a number of factors that
raised receipts and lowered outlays in FY 1987
are not likely to be repeated, and—absent further
legislative action—deficits could expand again
unless there are particularly favorable economic
circumstances.
About half the deficit reduction could be traced
to these one-time factors, as tax-reform effects
boosted revenues, and asset sales and changes in
the timing of certain payments reduced outlays.
158
Federal Reserve Bulletin • March 1988
The remainder of the reduction in the deficit
reflected strong revenue growth and a very small
underlying rise in outlays. The economic expansion boosted receipts, while, on the outlay side,
lower interest rates in FY 1987 offset some of the
increase in interest payments associated with the
rise in the size of the national debt. In addition,
the improvement in the farm sector reduced
agricultural support payments, and lower inflation in 1986 held down cost-of-living adjustments
for many entitlements. Spending restraint also
had a noticeable effect: the rise in military spending slowed, and cuts in discretionary programs
reduced outlays for education, energy, and intergovernmental assistance.
The state and local sector recorded a sizable
deficit in its operating and capital accounts
(which exclude social insurance funds), as expenditures expanded more rapidly than receipts.
Many states took action in early 1987 to deal with
eroding fiscal positions. About half of the states
cut their budgets last year and two-thirds raised
taxes, with many of the budget adjustments in
energy and farm states. However, pressing needs
to expand and upgrade schools, highways, and
correctional institutions continue to squeeze
many state and local budgets.
Labor
Markets
Employment increased 3 million over the 12
months of 1987, as the pickup in economic activity led employers to add workers at a brisk pace.
In contrast to prior years, when the labor market
was characterized by sharp disparities across
sectors, the strengthening in hiring in 1987 was
widespread by industry. In manufacturing, employment edged up over the first half of the year
and then rose substantially in the second half in
response to the sharp gains in industrial production. Moreover, the expansion of jobs in the
trade, service, and finance industries remained
sizable during most of 1987, although hiring in
trade and finance apparently slowed somewhat in
the latter part of the year in the wake of sluggish
consumer spending and the stock market crash.
The demand for labor considerably outpaced
increases in labor supply, and the civilian unemployment rate dropped nearly 1 percentage point
over the year to 53A percent at year-end—the
lowest level since 1979. The jobless rate for adult
men moved down to about 4!/2 percent by the end
of last year, reflecting strong growth in the industrial sector. The rate for adult women fell to
around 43A percent early in the year, but changed
little in the second half.
As the unemployment rate dropped sharply,
wage increases, which had been decelerating for
several years, leveled out; however, they
showed little signs of acceleration last year.
Hourly compensation, as measured by the employment cost index, advanced 3lA percent in the
12 months ended December, about the same pace
as in 1986. The moderate rise in compensation,
which was fairly widespread across industries
and occupations, occurred despite a substantial
pickup in consumer price inflation. As a result,
real hourly compensation fell last year and has
averaged only about a Vz percent increase annually since 1984.
Unit labor costs in the nonfarm business sector
rose only VA percent last year, after a 2 percent
increase in 1986. The continued restraint in labor
costs primarily reflected moderate compensation
growth, as productivity gains for the sector as a
whole have improved little from the sluggish
pace of the 1970s. In contrast, manufacturers
apparently have made significant progress in
increasing efficiency and streamlining operations, and output per hour in this sector rose
nearly VA percent in 1987. This advance in
manufacturing productivity, coupled with continued slow growth in manufacturing wages, continued to put downward pressure on factory unit
labor costs last year.
Price
Developments
Inflation rebounded in 1987, largely reflecting
higher energy prices and continued price hikes
for imported goods. The fixed-weighted price
index for GNP increased about 4 percent for the
year as a whole, after a 2XA percent rise in 1986.
The consumer price and producer price indexes
suggested an even sharper acceleration in prices
over 1987, owing to the greater importance of
energy in those indexes. The consumer price
index was up AVi percent in the 12 months ended
December, after a 1 percent rise in 1986, while
the producer price index, which includes only
Monetary Policy Report to the Congress
prices of domestically produced goods, rose 2lA
percent over the year, after dropping 2XA percent
in 1986.
The overall rise in energy prices in 1987 reflected both a sharp rebound in prices early last
year and an additional runup in prices around
midyear. Spot prices for West Texas Intermediate crude oil (the benchmark crude oil in the
United States) rose $3 per barrel in January of
last year to about $18.50 per barrel in response to
lower OPEC production levels. Tensions in the
Persian Gulf boosted prices further during the
summer to a high of around $20 per barrel in
early August. Precautionary stockbuilding during
this period, coupled with higher levels of production by OPEC and the absence of any major
disturbance in the Gulf, subsequently helped put
downward pressure on crude oil prices, and oil
prices since late last summer have retreated to
about $17 per barrel. Retail prices for gasoline
and home heating oil closely followed movements in crude oil prices, rising around 20 percent through August and then falling somewhat
in the latter part of the year. In contrast, prices
for natural gas and electricity were down or little
changed last year, reflecting a further adjustment
to the net decline in oil prices since 1985.
Outside of the energy area, price increases for
goods picked up last year, while prices for nonenergy services rose about AVi percent, a bit less
than in 1986. A jump in used car prices accounted
for much of the acceleration in goods prices, but
further increases in import prices associated with
the falling exchange value of the dollar also were
evident in 1987. As a result, retail prices for
many items with high import proportions, such
as women's and girls' apparel, photographic
equipment, and toys and music equipment,
posted notable increases last year.
Prices for many industrial commodities also
rose considerably over the course of 1987. In
addition to the increase in crude oil prices,
copper prices more than doubled last year, and
steel scrap prices were up 36 percent by yearend. To some extent, the sharp rise in commodity prices reflects the influence of dollar depreciation on markets for internationally traded
goods. However, temporary supply shortages for
some industrial metals and the firming in U.S.
industrial activity undoubtedly also had an im
159
portant influence on commodity markets. In the
agricultural sector, grain prices fell early in 1987
as farmers sold large amounts of grain received
through government programs, but rebounded in
the latter part of the year as exports picked up in
response to the falling dollar.
MONETAR Y POLIC Y AND
FINANCIAL
MARKETS IN
1987
In 1987, the Federal Reserve continued to face
the difficult task of charting policy in an environment in which considerable uncertainties
clouded the relationship between the behavior of
the monetary aggregates and the performance of
the economy. As a result, while the Federal
Open Market Committee set targets for some of
the monetary aggregates, it was deemed necessary to maintain a flexible approach in conducting its operations, looking at a broad range of
information in judging when or if to adjust its
basic instruments—reserve availability and the
discount rate—in response to deviations in monetary growth from expected rates. Such factors
as the pace of business expansion, the strength of
inflation and inflation expectations, and developments in exchange markets played a major role in
governing the System's actions, and in light of
the behavior of these other factors, growth in the
targeted aggregates, M2 and M3, was permitted
to run at or below the established ranges.
During episodes beginning in the spring and
then again in late summer, the dollar came under
sustained downward pressure and inflationary
expectations appeared to be on the rise, partially
in response to the dollar's weak performance.
With the economy expanding at rates sufficient to
produce rising rates of resource utilization, the
FOMC sought some firming of pressures on
reserve positions and increased the discount rate
in September. When stock prices collapsed in
mid-October, the resulting turmoil required that
the focus of policy be on ensuring the liquidity of
the financial system. Over the remainder of the
year, emphasis in the conduct of open market
operations shifted toward maintenance of steady
and somewhat easier money market conditions
to promote a return of stability to financial mar-
160
Federal Reserve Bulletin • March 1988
kets generally and to cushion the effects of the
stock market decline on the economy.
Behavior
of Money and
Credit
M2 increased only 4 percent in 1987, well below
both the lower bound of its 5Vi to 8!/2 percent
annual growth range and its more than 9 percent
rate of expansion over the preceding two years.
The velocity of this aggregate picked up substantially, reversing a portion of the sharp decline
that occurred in 1985-86. The rise in velocity
may have reflected in part a number of special
factors affecting the public's demand for M2
balances in 1987, including a much-reduced rate
of saving out of income and a preference for
drawing upon liquid assets—rather than using
consumer credit—to finance purchases, the latter
in the wake of tax reform measures reducing
deductibility of nonmortgage interest payments.
However, much of the pickup in velocity appears
attributable to increases in the competing returns
on other assets, which raised the opportunity
costs associated with holding M2 balances.
The widening gap between market rates and
offering rates was most pronounced for the more
liquid retail deposits, where rates are changed
very infrequently. Early in the year, opportunity
costs on these accounts were still low and inflows
were large. As market rates rose, though, yields
on these accounts became increasingly less attractive and growth slowed; by late in the year,
there were net monthly outflows from both savings and NOW accounts. Also, money market
depdsit accounts declined, for the first year since
this component of M2 was introduced in late
1982. Expansion of money market mutual funds
was sluggish.
In contrast to the very liquid retail deposits,
small time deposits expanded in 1987, after two
years of zero or negative growth. Depository
institutions tend to keep the offering rates on
these deposits fairly well in line with market
alternatives of about the same maturity. With
intermediate-term rates rising more than short
rates in 1987, the spread between yields on small
time instruments and those on more liquid retail
accounts widened considerably, providing depositors with an incentive to shift funds into
small time deposits from the more liquid retail
instruments.
M3 was stronger than M2 over the year, expanding 5Vi percent and ending the year at the
bottom of its 5!/2 to 8V2 percent annual growth
range. Its faster growth reflected heavy reliance
by depository institutions on large time deposits
and on certain other instruments included in M3
but not in M2. Both commercial banks and thrift
institutions stepped up their issuance of wholesale managed liabilities to fund more asset
growth than could be accommodated by greatly
reduced inflows of core deposits. Even so, M3
growth was subdued relative to prior years,
reflecting in part reduced overall needs for funds
as asset expansion at banks and thrifts slowed. In
addition, banks relied heavily on managed liabilities obtained from non-M3 sources, especially
funds borrowed from their foreign branches.
Growth of Ml slowed to 6lA percent from the
very rapid 15!/2 percent increase posted the previous year, owing to a small decline in demand
deposits and a sharply lower expansion of other
checkable deposits. The velocity of Ml increased
slightly, after a record postwar decline a year
earlier. The sharp slowing of growth and the
abrupt turnabout in its velocity are indicative of
the increased sensitivity to movements in market
interest rates that has emerged for Ml in recent
years. As suggested by its comparatively larger
deceleration in 1987, Ml now appears to have a
greater sensitivity to changes in interest rates
than the broader aggregates.
In large measure, the greater sensitivity of Ml
reflects the increasing share of other checkable
deposits. Because NOW accounts pay explicit
interest, they serve as an attractive savings vehicle as well as a transactions account. The
available information suggests that owners of
NOW accounts are quite sensitive to changes in
opportunity costs, shifting savings balances between these accounts and other, less liquid retail
deposits. At the beginning of 1987, market interest rates were very close to NOW account rates,
and with the opportunity cost so low, depositors
apparently placed unusually large amounts of
interest-sensitive funds in these accounts; as
market rates rose during 1987, these funds evidently were shifted out of NOW accounts in
search of higher yields.
Monetary Policy Report to the Congress
161
3. Growth of money and debt1
Percentage changes at annual rates
Ml
M2
M3
Debt of domestic
nonfinancial sectors
7.7
7.5
5.2 (2.5) 2
8.7
10.2
5.3
12.0 (12.9) 3
15.6
6.2
8.2
8.9
9.3
9.1
12.1
7.6
8.9
9.4
4.0
10.4
9.5
12.3
9.9
9.8
10.4
7.7
9.1
5.4
12.3
9.6
10.0
8.9
11.3
14.2
13.3
13.2
9.6
6.5
2.6
2.8
4.0
6.5
4.7
4.5
5.6
10.5
8.7
8.1
9.7
Period
Fourth quarter
1979
1980
1981
1982
1983
1984
1985
1986
1987
Quarterly
1987: 1
2
3
4
to fourth
quarter
growth
13.2
6.6
.8
3.9
1. M l , M2, and M3 incorporate effects of benchmark and seasonal adjustment revisions made in February 1988. Certain technical redefinitions affecting only M l were made at the same
time.
The abrupt weakening of demand deposits
after two years of rapid expansion suggests that
this component of Ml also is sensitive to interest
rates. Higher market interest rates obviously
provide incentives to economize on balances that
earn no interest. Higher rates also permit business firms to reduce the amount of balances held
with banks as compensation for services provided but not paid for with fees; because banks
can earn greater returns by investing these funds
when rates are higher, they reduce the balance
requirements
commensurately.
Substantial
amounts of demand deposits are held under
compensating balance arrangements, which
helps to explain a high interest elasticity for
demand deposits. Over time, though, there has
been a gradual movement toward the substitution
of explicit fees for compensating balances, and
some reports indicate that such shifts may have
accelerated in late 1987, thereby contributing to
the steep declines in demand deposits near yearend. Higher mortgage rates also may have contributed to weakness in demand deposits in 1987
by slowing the pace of mortgage refinancing—an
i&fivity that lend& to boost demand d e p o t s
temporarily because the amount being prepaid on
an old mortgage often is placed in escrow for a
time in a demand deposit account.
The collapse of equity prices boosted the average level of all the aggregates a bit in the fourth
2. M l figure in parentheses is adjusted for shift to N O W accounts in
1981
y-,. -tine,-
•
fi'*-iH«- •
• .
<. • - i l f
3. M l figure in parentheses is the annualized growth rate from the
second to the fourth quarter of 1985.
quarter, but Ml was most noticeably affected.
Demand deposits rose sharply around the time of
the crash, reflecting the increased volume of
financial transactions arising from the surge in
trading activity. Other checkable deposits also
registered sizable inflows, as some funds withdrawn from the stock market probably were
placed initially in these accounts. Outside of Ml,
sizable amounts of funds were transferred from
equity mutual funds into money market mutual
funds, which are included in M2. The boost to
the aggregates was concentrated in late October
and proved temporary, with deposits receding
over the month of November.
The debt of domestic nonfinancial sectors grew
9Vi percent last year, ending the year at the
middle of the Committee's monitoring range of 8
to 11 percent. Debt expansion moderated considerably from the 1314 pace of the two previous
years, but still rose faster than income. Federal
debt growth slowed in 1987, as some progress
was made in reducing the federal deficit. Borrowing by state and local governments fell substantially, Jlartly reflecting the damping effect of
higher borrowing costs and the availability of
unspent funds from earlier financings. In the
household sector, overall growth of indebtedness
slowed. Sluggish spending and shifts toward
greater reliance on home equity lines of credit, in
response to the effects of tax reform in reducing
162
Federal Reserve Bulletin • March 1988
deductibility of interest payments on consumer
debt, held down use of consumer credit. However, a brisk pace of home sales over most of the
year helped sustain the growth of mortgage debt
at about the elevated pace of 1986. Despite some ~
widening last year of the gap between internally
generated funds and capital expenditures, business borrowing diminished in both short- and
long-term markets. However, businesses continued to retire equity last year through mergers,
buyouts, and share repurchases, and the credit
needed to finance these retirements boosted the
expansion of business indebtedness.
Implementation
of Monetary
Policy
During the first half of 1987, monetary policy was
carried out in an atmosphere of increasing concerns about the course of inflation, arising in part
from heavy downward pressure on the dollar.
Growth of the economy was bringing about noticeable increases in resource utilization, and
inflation was picking up, reflecting the effect of a
weaker dollar on import prices as well as a
rebound of oil prices from low 1986 levels. When
the dollar came under heavy pressure in late
March, previously tranquil credit markets began
to exhibit concern about the effect that declines
of the dollar would have on prices. Long-term
interest rates, in particular, moved up strongly.
In conjunction with some easing moves abroad,
the Federal Reserve sought somewhat greater
restraint in the provision of reserves to the
banking system. Initially, this action produced
further increases in interest rates, but subsequently, financial pressures eased somewhat. In
response to reductions in interest rates abroad,
to some flattening in commodity prices, and to
better news on the U.S. trade deficit, the dollar
firmed and there was a broad decline in interest
rates, with long-term rates falling somewhat
more than short-term rates.
When the FOMC met in July to review its
growth ranges for money and credit, all of the
monetary aggregates had decelerated considerably. The weakness in monetary growth did not
reflect any evident weakness in the economy,
however; rather, the slower money growth, and
accompanying strengthening in velocity, appeared largely attributable to the rise in market
rates of interest fostered in part by the Federal
Reserve's response to adverse developments
with respect to the dollar and inflation. The
Committee decided to reaffirm its 1987 growth
ranges for M2 and M3; in doing so, it anticipated
some pickup in the growth of M2 over the
remainder of the year, but it indicated that
growth for all of 1987 near or even below the
bottom of the target ranges might be acceptable
for both aggregates, depending on the behavior
of their velocities and other financial and economic developments, notably the evolving
strength of inflationary pressures. The Committee also decided not to set a target range for Ml,
given the unpredictability of the behavior of this
aggregate relative to economic activity.
For a short time after the July meeting, the
dollar rose further but, with the release of trade
data in mid-August that disappointed market
participants, the dollar again came under substantial downward pressure. Long-term bond
yields moved up sharply, as the dollar's weakness against a backdrop of strength in the economy spurred concerns about inflation and possible firming of monetary policy. Interest rates in
short-term markets also increased, but by lesser
amounts. In light of the potential for greater
inflationary pressures, in part related to weakness in the dollar, the Federal Reserve sought to
reduce marginally the availability of reserves
through open market operations; it also raised its
discount rate Vi percentage point in early September to 6 percent. After the discount rate
action, interest rates rose further, especially in
short-term markets.
Stock prices, which had reached very high
levels relative to earnings and had been falling
since mid-August, plunged on October 19 in
chaotic trading. The stock market drop prompted
a marked decline in interest rates as investors
sought refuge in the perceived safety of fixedincome assets, especially Treasury securities.
Although most stock indexes recovered somewhat in the wake of the crash, financial markets
remained turbulent, with bond and equity prices
fluctuating widely.
In a financial environment of extraordinary
turmoil and apparent fragility, the Federal Reserve shifted the emphasis in the conduct of open
market transactions to providing reserves gener-
Monetary Policy Report to the Congress
ously to ensure that adequate liquidity would be
available to meet any unusual needs. Nonborrowed reserves grew rapidly in late October to
accommodate both a large increase in reserves
required against surging transactions deposits
and an enlarged demand for excess reserves. An
easing of pressures on reserve positions also took
place, which, along with some diminution of
inflation expectations, led to a partial reversal of
earlier increases in interest rates. These actions
helped to calm the financial markets, although
conditions remained somewhat unsettled over
the rest of the year.
Early in 1988, as incoming data suggested that
economic expansion over the first part of the
year might be weak, bond rates dropped substantially and the Federal Reserve sought some slight
additional easing in desired pressures on reserve
positions. Better trade news bolstered confidence in the dollar, and the monetary aggregates
showed signs of renewed strength.
Other Developments
in Financial
Markets
Despite the slower growth of debt and the overall
strength of the economy last year, there still were
some signs of strain and financial fragility in
portions of the economy.
The nonfinancial corporate sector remained
highly leveraged and thus potentially vulnerable
to adverse changes in the economic and financial
environment. A combination of strong debt issuance and massive net equity retirements boosted
the aggregate debt-equity ratio of these corporations, measured at market values at year-end,
after a two-year decline resulting from increases
in stock prices. Moreover, higher interest rates
along with additional debt boosted borrowing
costs, keeping the net interest-coverage ratio at
about the very low levels recorded during the last
recession. Reflecting the weakening of the finances of some corporations, the pace of downgradings of corporate debt remained very high in
1987, and a record $9 billion of rated corporate
bonds were placed in default.
The household sector also exhibited a few
signs of strain on personal finances. As noted
previously, the pace of expansion of total household debt slowed last year, likely reflecting reduced deductibility of consumer interest under
163
the new tax code and weaker consumer spending. However, the growth of household debt still
outstripped that of disposable income, and the
ratio of debt to income reached new highs. For
some individuals, the strains posed by high debt
burdens apparently remain quite severe, as the
number of personal bankruptcies has been growing rapidly over the last three years and setting
new records. On the other hand, recent declines
in the delinquency rate on mortgage debt have
brought this indicator of financial stress more
into line with historical standards.
The banking industry was under some continuing stress in 1987, primarily reflecting well-publicized difficulties with energy and developing
country loans, but in some parts of the country
with agricultural and real estate loans as well.
Although most banks continue to be healthy and
enjoy reasonable profits, souring energy and agricultural loans in recent years have led to record
numbers of bank closings, principally of smaller
banks in the midwestern and southwestern portions of the country; however, problems with the
quality of agricultural loans appear to be diminishing as the agricultural sector shows signs of
improvement.
Provisioning by large banks for losses on troubled loan portfolios led to record losses in 1987
for the banking industry and to substantial declines in the book value of shareholder equity of
affected banks. Doubts regarding the ultimate
collectibility of loans to some heavily indebted
developing countries weighed down the stock
prices of many large banks in 1987, but investor
reaction to the second-quarter decision to make
provisions for substantial losses was generally
positive, and at the time share prices rose for
many banks taking this step. Difficulties persisted over the year in making progress in handling the economic and financial problems of
many of the developing countries, and in the
fourth quarter a number of large banks announced additional provisioning for losses on
such debt and, in some instances, write-offs of
problem loans.
After several years of improvement, the financial condition of the thrift industry deteriorated
in 1987. Aggregate earnings declined, with losses
posted in the second and third quarters as a result
of heavy provisions for losses on assets, includ-
164 Federal Reserve Bulletin • March 1988
ing a one-time write-off of accumulated insurance
payments prepaid to the Federal Savings and
Loan Insurance Corporation (FSLIC).3 However, as has been true for some years now, the
aggregate condition of the industry masked extremes among individual thrifts. Many thrifts are
well capitalized and quite profitable, but severe
problems with asset quality have left a substantial minority insolvent and suffering massive operating losses that are steadily worsening. Prior
to the passage in 1987 of legislation authorizing a
recapitalization, the FSLIC had been unable to
3. In March 1987, the General Accounting Office declared
the FSLIC was insolvent because it would be unable to meet
all its future obligations on insured deposits at failed but not
yet closed institutions. The Financial Accounting Standards
Board then ruled that the prepaid assessments, which were
assets on the balance sheets of individual thrift institutions,
had to be written off immediately. The FSLIC recapitalization plan included in the Competitive Equality Banking Act of
1987 provides that the affected thrifts will recover the amount
of this write-off over the next five years as new funds are
raised for FSLIC.
take effective remedial action with respect to
these insolvent institutions, owing to the inadequacy of its resources. Under the terms of the
recapitalization plan approved as part of the
Competitive Banking Equality Act, the newly
created Financing Corporation has begun raising
the funds needed by the FSLIC through issuance
of long-term debt.
The stock market collapse gave very clear
warning of the vulnerability of important elements of the financial system to sudden shocks.
Although only a few small securities firms failed,
the market turbulence produced significant problems for traders, specialists, and market makers
on the stock exchanges; and, more generally,
financial markets gave evidence of fragility and
instability that have not entirely disappeared
even yet. Under the circumstances, it is essential
that the reexamination of our market mechanisms and regulatory systems go forward, to
identify any actions that might be needed to
safeguard the strength of our capital markets and
lower the risks of economic disruption.
165
Industrial Production
Released
for publication
January
15
Industrial production rose 0.2 percent in December after having increased 0.4 percent in November and 1.1 percent in October. During the past
two months, total output was boosted by continued gains in materials and in supplies for both
construction and business; but, at the same time,
production of automotive products and business
equipment weakened. At 133.3 percent of the
1977 average, industrial production in December
was more than 5 percent higher than it was a year
earlier, and the fourth-quarter level of output was
1.5 percent greater than that of the third quarter
(not at an annual rate). Last year, the growth in
average annual output was well above the slow
pace of the two previous years: 3.8 percent in
1987, compared with 1.1 percent in 1986 and 1.9
percent in 1985.
In market groups, production of consumer
Ratio scale, 1977 = 100
1981
1983
1985
All series are seasonally adjusted. Latest figures: December.
1987
1981
1983
1985
1987
166 Federal Reserve Bulletin • March 1988
1977 = 100
Percentage change from preceding month
1987
1987
Group
Nov.
Aug.
Dec.
Sept.
Oct.
Nov.
Dec.
Percentage
change,
Dec. 1986
to Dec.
1987
Major market groups
Total industrial production
133.1
133.3
.5
-.2
1.1
.4
.2
5.2
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment...
Defense and space
Intermediate products...
Construction supplies.
Materials
141.2
139.5
129.5
124.5
131.4
148.7
190.0
146.9
134.0
122.0
141.3
139.4
129.7
123.1
132.1
148.2
191.1
147.5
134.5
122.5
.3
.4
.4
.7
.3
.1
.2
.2
-.5
.7
-.4
-.4
-1.3
-2.2
-1.1
.4
.4
-.3
-.2
.2
1.1
1.2
1.2
4.9
.0
1.7
.2
.8
.6
1.2
.1
.0
.2
.0
.3
.0
-.1
.6
.7
.8
.1
-.1
.1
-1.1
.5
-.3
.6
.5
.4
.4
4.5
4.0
2.4
3.1
2.2
6.2
2.6
6.0
4.6
6.3
.5
.2
.9
-.1
.7
.2
-.1
.6
.2
-.4
5.3
5.5
5.1
6.4
3.1
Major industry groups
138.0
137.0
139.5
103.0
112.9
Manufacturing
Durable
Nondurable
Mining
Utilities
.2
.2
.2
1.7
1.6
138.3
136.8
140.3
103.3
112.4
-.1
-.1
-.1
1.0
-1.4
1.2
2.2
-.2
1.2
.8
NOTE. Indexes are seasonally adjusted.
goods was, on balance, little changed again in
December. Declines in assemblies of autos and
light trucks were offset by continued and widespread increases in home goods, particularly
appliances, and in nondurable consumer goods.
Auto assemblies in December were at a 6.5
million unit annual rate, about 9 percent below
the November level. Production of business
Total industrial p r o d u c t i o n — R e v i s i o n s
Estimates as shown last month and current estimates
Index (1977=100)
Month
September
October
November
December
Percentage change
from previous
months
Previous
Current
Previous
Current
130.9
132.0
132.5
131.0
132.5
133.1
133.3
-.3
.9
.4
-.2
1.1
.4
.2
equipment, which rose sharply between May and
October, was unchanged in November and fell
slightly in December. This decline mainly reflected weakness in commercial equipment, particularly computers, and in transit equipment;
but manufacturing equipment also grew more
slowly in December. Total materials output rose
0.4 percent in December, outpacing the growth
rate in total products for the fifth successive
month. Among durable materials, production of
equipment parts and basic metals other than steel
continued to advance. Gains in nondurables were
led by further increases in the output of paper
and chemical materials.
In industry groups, output of manufacturing
rose 0.2 percent in December as a result of
continued strength in nondurables; production of
durables edged down. Output of mining was
about unchanged again, and production by utilities declined.
167
Announcements
STATEMENT BY CHAIRMAN
REGARDING TASK FORCE
ON MARKET
MECHANISMS
GREENSPAN
Chairman Alan Greenspan of the Federal Reserve Board issued the following statement on
January 8, 1988:
The Task Force on Market Mechanisms is to be
commended for its report on the stock market collapse
of October 19, 1987. I find it extraordinary that the
Task Force was able to do so much, and obtain such
vast amounts of previously unavailable data, in such a
short period of time. I've been told that the report
provides a number of new insights and suggestions
designed to prevent a recurrence of the events that
transpired in October. I look forward to reading it in
detail.
APPOINTMENT OF NEW MEMBERS
THRIFT INSTITUTIONS ADVISORY
TO THE
COUNCIL
The Federal Reserve Board announced on January 12, 1988, the names of five 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 1988.
The council is an advisory group comprised of
12 representatives from thrift institutions. The
panel was established by the Board in 1980 and
includes representatives from savings and loan
institutions, savings banks, and credit unions.
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.
Jamie J. Jackson, President of Commonwealth
Financial Group, Houston, Texas, was designated president of the council and Gerald M.
Czarnecki, Chairman of the Board and Chief
Executive Officer of HONFED, Honolulu, Hawaii, was designated vice president.
The five new members, named to two-year
terms that began January 1, are the following:
Robert S. Duncan, Chairman, President, and
Chief Executive Officer, Magnolia Federal Bank
for Savings, Hattiesburg, Mississippi; Joe C.
Morris, Chairman of the Board, Columbia Savings Association, Emporia, Kansas; Joseph W.
Mosmiller, Chairman and Chief Executive Officer, Loyola Federal Savings and Loan Association, Baltimore, Maryland; Louis H. Pepper,
Chairman and Chief Executive Officer, Washington Mutual Savings Bank, Seattle, Washington;
and Donald B. Shackelford, Chairman of the
Board, State Savings Bank, Columbus, Ohio.
The other members of the Council are the
following: Betty Gregg, President and Chief Executive Officer, Desert Schools Federal Credit
Union, Phoenix, Arizona; Thomas A. Kinst,
President and Chief Executive Officer, Land of
Lincoln Savings & Loan, Hoffman Estates, Illinois; Ray Martin, Chairman and Chief Executive
Officer, Coast Savings & Loan Association, Los
Angeles, California; Janet M. Pavliska, President
and Chief Executive Officer, Bank Five for Savings, Arlington, Massachusetts; and William G.
Schuett, President and Chief Executive Officer,
Security Savings and Loan Association, Milwaukee, Wisconsin.
PRELIMINARY FIGURES RELEASED ON
INCOME OF FEDERAL RESERVE
BANKS
Preliminary figures released on January 11, 1988,
indicate that operating income of the Federal
Reserve Banks amounted to $17,633 billion during 1987. Net income before dividends, additions
to surplus, and payments to the Treasury totaled
$18,032 billion. Net income exceeded operating
income because of gains on the sale of and an
increase in the value of assets denominated in
foreign currencies that were adjusted to market
exchange rates.
168
Federal Reserve Bulletin • March 1988
About $17.7 billion was paid to the U.S. Treasury during 1987.
Income from 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 $645 million.
Operating expenses of the 12 Reserve Banks
and their branches totaled $1,147 billion, including $114 million for earnings credits granted to
depository institutions. Assessments by the
Board of Governors for Board expenditures totaled $82 million and the cost of currency
amounted to $171 million.
Net additions to income amounted to $1,798
billion, primarily resulting from gains on assets
denominated in foreign currencies. Statutory dividends to member banks were $117 million; additions to Reserve Bank surplus were $174 million; and payments to the Treasury were $17,740
billion.
Under the policy established by the Board of
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.
REVISED
MARGIN
LIST OF OTC
REGULATIONS
STOCKS
NOW
SUBJECT TO
AVAILABLE
The Federal Reserve Board published on January 22, 1988, a revised list of over-the-counter
(OTC) stocks that are subject to its margin regulations, effective February 8, 1988.
This List of Marginable OTC Stocks supersedes the revised list that was effective on November 10, 1987. Changes that have been made
in the list, which now includes 3,283 OTC stocks,
are as follows: 54 stocks have been included for
the first time, 47 under National Market System
(NMS) designation; 37 stocks previously on the
list have been removed for substantially failing to
meet the requirements for continued listing; 63
stocks have been removed for reasons such as
listing on a national securities exchange or involvement in an acquisition.
The list includes all OTC securities designated
by the Board pursuant to its established criteria
as well as all stocks designated as NMS securities for which transaction reports are required
pursuant to an effective transaction reporting
plan. 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 May 1988.
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.
CHANGES
IN BOARD
STAFF
The Board of Governors announced the following changes in the Division of Personnel, effective February 1,1988, including the change of the
division's name to the Division of Human Resources Management:
The appointment of Anthony V. DiGioia as
Assistant Director, with managerial responsibility for Board Human Resources: Benefits, Training, and Health Services.
The appointment of Joseph H. Hayes, Jr. as
Assistant Director, with managerial responsibility for Reserve Bank Human Resources.
The appointment of Fred Horowitz as Assistant Director, with managerial responsibility for
Board Human Resources: Recruitment, Compensation, and Employee Relations.
The promotion of John R. Weis from Assistant
Director to Associate Director, with responsibility for general oversight of the Board human
resources function and special projects.
Mr. DiGioia joined the Board's staff in April
1979 as Manager, Resource Development and
has rotated through several functions in the division. He holds a masters degree in philosophy
and psychology from St. Stephen's college.
Mr. Hayes joined the Board's staff in March
1985 as a Senior Personnel Analyst. He holds
bachelors degrees in liberal arts and industrial
engineering from the University of Pittsburgh.
Announcements
Mr. Horowitz joined the Board's staff in April
1977 as Manager, Wage and Salary Administration and has since held several managerial positions within the division. He received his undergraduate degree from the University of Maryland
and has done graduate work at George Washington University.
SYSTEM MEMBERSHIP:
STATE BANKS
ADMISSION
169
OF
The following state bank was admitted to membership in the Federal Reserve System during the
period January 1 through January 31, 1988:
Florida
Clearwater
Countryside Bankers
171
Legal Developments
ORDERS ISSUED
COMPANY
ACT
UNDER BANK
HOLDING
Orders Issued Under Section 3 of the Bank
Holding Company Act
Affiliated Bank Corporation of Wyoming
Casper, Wyoming
Order Approving Acquisition of a Bank
Affiliated Bank Corporation of Wyoming, Casper,
Wyoming ("Affiliated"), 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, pursuant to section 3(a)(3) of the
Act, to acquire all of the voting shares of First National Bank of Lovell, Lovell, Wyoming ("Lovell").
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published (52 Federal Register 38,814 (1987)).
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.
Affiliated, with deposits of $402.8 million,1 is the
third largest commercial banking organization in Wyoming, controlling 10.3 percent of the total deposits in
commercial banking organizations in the state. Lovell
Bank is the 26th largest commercial banking organization in Wyoming, with deposits of $37.3 million, representing 1.0 percent of the total deposits in commercial banking organizations in the state. Upon
consummation of this proposal, Affiliated will become
the second largest commercial banking organization in
Wyoming and control deposits of $440.1 million, representing 11.3 percent of the total deposits in commercial banking organizations in the state. Consummation
of this proposal would not have any significant adverse
effect upon the concentration of banking resources in
Wyoming.
Lovell Bank operates in the Park County banking
market,2 a market in which Affiliated does not operate.
1. All banking data are as of December 31, 1986.
2. The Park County banking market is approximated by Park
County, Wyoming plus Lovell in Big Horn County, Wyoming.
Accordingly, consummation of the proposal is not
likely to result in the elimination of any significant
existing competition. In view of the numerous entrants
into the market, the Board concludes that the proposal
would not have any significant adverse effect on
probable future competition.
In evaluating this application, the Board has considered the financial resources of Affiliated and the effect
on these resources of the proposed acquisition. The
Board has stated and continues to believe that capital
adequacy is an important factor in the analysis of bank
holding company proposals. In this regard, the Board
notes that Affiliated will not incur any debt in connection with this proposal and will increase its capital as a
result of the issuance of additional common stock.
Accordingly, the Board concludes that financial and
managerial resources of Affiliated and Lovell 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 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 Kansas City pursuant
to delegated authority.
By order of the Board of Governors, effective
January 20, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, and Kelley.
JAMES M C A F E E
Associate Secretary of the Board
BOL Bancshares, Inc.
New Orleans, Louisiana
Order Approving Formation of a Bank Holding
Company
BOL Bancshares, Inc., New Orleans, Louisiana
("BOL"), has applied for the Board's approval pur-
172
Federal Reserve Bulletin • March 1988
suant to section 3(a)(1) of the Bank Holding Company
Act of 1956, as amended (12 U.S.C. § 1842(a)(1)
("Act")), to become a bank holding company by
acquiring Bank of Louisiana in New Orleans, New
Orleans, Louisiana ("New Orleans Bank"), and Fidelity Bank and Trust Company, Slidell, Louisiana
("FBT") (collectively "Banks"), and by merging with
BOS Bancshares, Inc., Metairie, Louisiana ("BOS"),
and thus indirectly acquiring Bank of the South, Metairie, Louisiana.
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the Act
(12 U.S.C. § 1842(b)). 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)).
BOL, a non-operating corporation with no subsidiaries, was organized for the purpose of becoming a
bank holding company by acquiring Banks and BOS.
Upon consummation of this proposal, BOL would
become the 24th largest commercial banking organization in Louisiana, controlling three banks, with total
deposits of $111.3 million, representing 0.36 percent of
total deposits in commercial banking organizations in
the state.1 Consummation of this proposal would not
significantly affect the concentration of banking resources in the state.
All three banks compete in the New Orleans banking market.2 New Orleans Bank, FBT and BOS are,
respectively, the 20th, 28th, and 26th largest of 33
commercial banking organizations in the market, controlling $55.2 million, $24.7 million, and $31.4 million
in deposits, representing 0.64 percent, 0.29 percent,
and 0.36 percent of total deposits in commercial banking organizations in the market. Upon consummation
of this proposal, BOL would control $111.3 million in
deposits in the market, representing 1.29 percent of
total deposits in commercial banking organizations.
The New Orleans banking market is not concentrated
and the Herfindahl-Hirschman Index will increase by
only 2 points, from 1480 to 1482. Based on the facts of
record, consummation of the proposed transaction
would not result in any significant adverse effects upon
competition, nor would it significantly increase the
concentration of banking resources in any relevant
area.
The Board has previously indicated that a bank
holding company should serve as a source of financial
and managerial strength to its subsidiary banks, and
1. All banking data are as of September 30, 1987.
2. The N e w Orleans banking market consists of the parishes of
Orleans, Jefferson, St. Bernard and St. Tammany, Louisiana.
that the Board would closely examine the condition of
an applicant in each case with this consideration in
mind. Although BOL will incur debt in connection
with this proposal, it appears that BOL will be able to
service its debt, particularly in light of the commitments made by BOL and the conversion of previously
accrued debt into common stock. In light of the above,
the Board views the financial and managerial resources of BOL, New Orleans Bank, FBT, BOS and
its subsidiary bank as consistent with approval. Considerations relating to the convenience and needs of
the communities to be served are also consistent with
approval.
Based on the foregoing and other facts of record,
including the 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 for good cause by the Board or
the Federal Reserve Bank of Atlanta, acting pursuant
to delegated authority.
By order of the Board of Governors, effective
January 6, 1988.
V o t i n g f o r this a c t i o n : C h a i r m a n G r e e n s p a n a n d G o v e r n o r s
Johnson, Seger, Angell, Heller, and Kelley.
JAMES M C A F E E
Associate Secretary of the Board
Plains Capital Corporation
Lubbock, Texas
Order Approving Formation of a Bank Holding
Company
Plains Capital Corporation, Lubbock, Texas ("Plains
Capital"), has applied for the Board's approval under
section 3(a)(1) of Bank Holding Company Act
("Act"), 12 U.S.C. § 1842(a)(1), to become a bank
holding company by acquiring The Plains Corporation,
Lubbock, Texas ("TPC"), and thereby indirectly acquiring Plains National Bank of Lubbock, Lubbock,
Texas ("Bank").
Notice of the application, affording interested persons an opportunity to submit comments, has been
given in accordance with section 3(b) of the Act (52
Federal Register 33,655 (1987)). 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.
Legal Developments
Plains Capital is a nonoperating corporation formed
for the purpose of acquiring TPC and Bank. Bank is a
wholly owned subsidiary of TPC. Bank is the 71st
largest bank in the state, controlling deposits of $158.8
million, representing 0.10 percent of total deposits in
commercial banking organizations in the state.1 Consummation of this proposal would not have any significant adverse effect on the concentration of banking
resources in Texas.
Bank operates in the Lubbock County banking
market.2 The principals of Applicant are not associated with any other banking organization in this market. Consummation of this proposal would not result
in any adverse effects upon competition or increase
the concentration of banking resources in any relevant
market. Accordingly, the Board concludes that competitive considerations under the Act are consistent
with approval.
The financial and managerial resources of Plains
Capital, TPC and Bank are consistent with approval.
Considerations relating to the convenience and needs
of the communities to be served are also consistent
with approval.
Based on the foregoing and all the 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 Dallas
pursuant to delegated authority.
By order of the Board of Governors, effective
January 11, 1988.
Voting for this action: Chairman Greenspan and Governors
Seger, Angell, and Kelley. Absent and not voting: Governors
Johnson and Heller.
JAMES M C A F E E
Associate Secretary of the Board
173
Bank Holding Company Act of 1956, as amended (the
"Act") (12 U.S.C. § 1841 et seq.), has applied for the
Board's approval under section 3 of the Act (12 U.S.C.
§ 1842) to acquire American Asian Bancorp, San Francisco, California ("Bancorp"), and thereby to acquire
indirectly American Asian Bank, San Francisco, California ("Bank").
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been duly published (52 Federal Register 44,935
(1987)). The time for filing comments has expired, and
the Board has considered the application and all
comments received in light of the factors set forth in
section 3(c) of the Act.
Applicant, with approximately $27 billion in deposits in California, is the third largest of 439 commercial
banking organizations in the state, controlling approximately 13.8 percent of total deposits in commercial
banks in California.1 Bank is the 64th largest commercial banking organization in California, with deposits
of approximately $195.6 million, controlling less than 1
percent of the total deposits in commercial banks in
California. Consummation of the proposal would not
significantly increase the concentration of banking
resources in California.
Applicant competes with Bank in the Los Angeles
and San Francisco metropolitan banking markets.2
While Applicant is one of the largest commercial
banking organizations in these markets, Bank is
among the smaller organizations, controlling less than
1 percent of the total deposits in commercial banks in
the Los Angeles market and the San Francisco
market.3 In view of these facts and the small increase
in market concentrations in each market (less than 5
points on the Herfindahl-Hirschman Index), the Board
concludes that consummation of the proposal would
not have any significant adverse competitive effects or
result in the concentration of banking resources in any
relevant banking market.
The financial and managerial resources of Applicant
are satisfactory and will enable Applicant to serve as a
source of strength to Bancorp and Bank.
Security Pacific Corporation
Los Angeles, California
Order Approving Acquisition of a Bank Holding
Company and Its Banking Subsidiary
Security Pacific Corporation, Los Angeles, California,
a bank holding company within the meaning of the
1. All banking data are as of December 31, 1986; state ranking is as
of June 30, 1987.
2. The Lubbock County banking market is approximated by Lubbock County, Texas.
1. Statewide banking data are as of June 30, 1987.
2. Market data are as of June 30, 1986. The Los Angeles banking
market is approximated by Los Angeles, Anaheim, Long Beach,
Riverside, and San Bernadino. The San Francisco banking market is
approximated by San Francisco, Marin, Sonoma, Solano, Napa,
Contra Costa, San Mateo, Alameda, and Santa Clara counties.
3. Applicant is the 2nd largest of 226 commercial banking organizations in the Los Angeles market, controlling approximately 21.1
percent of the total deposits in commercial banks in the market. Bank
is the 62nd largest commercial banking organization in that market.
Applicant is the 4th largest of 102 commercial banking organizations in
the San Francisco market, controlling approximately 2.5 percent of
the total deposits in commercial banks in the market. Bank is the 40th
largest commercial banking organization in that market.
174 Federal Reserve Bulletin • March 1988
In considering the convenience and needs of the
communities to be served, the Board has taken into
account the records of Applicant and Bancorp underthe Community Reinvestment Act ("CRA"),
12 U.S.C. § 2901 et seq.4 The Board has received
comments from the Pomona Valley Chapter of the
National Association for the Advancement of Colored
Persons, Pomona, California ("Protestant").5 In accordance with the Board's practice and procedure for
handling protested applications,6 the Federal Reserve
Bank of San Francisco assisted in arranging a meeting
between the parties to clarify the issues under the
CRA and to provide a forum to resolve the concerns
raised by the protest. The parties, however, were
unable to come to a resolution of their differences.
Initially, the Board notes that both Applicant and
Bancorp have satisfactory CRA records. The Board
also notes that Applicant has scheduled a meeting in
early February to be attended by the CRA compliance
personnel from all of its subsidiary banking organizations. This meeting is intended to furnish a forum for
the dissemination of information concerning CRA programs available within Applicant's organization, discussion of individual programs of subsidiary banking
organizations, and the establishment of a working
group to increase Applicant's CRA program coordination and to establish system-wide CRA compliance
and reporting programs.
With specific regard to the protest, the Board's
analysis of SPNB's Home Mortgage Disclosure Act
data for the years 1982-1986 for the Los Angeles MSA
and the city of Pomona does not reveal a pattern of
discrimination against minority and low-income neighborhoods. In addition, the Board notes that Applicant
is involved with organizations which identify the needs
of low- and moderate-income persons in Los Angeles
County (which includes Pomona) and which develop
and manage programs that address those needs. Further, Applicant places Spanish language advertise-
4. The CRA requires the Board, in its evaluation of a bank holding
company application, to assess the record of an applicant in meeting
the credit needs of the entire community, including the low- and
moderate-income neighborhoods, consistent with safe and sound
operation.
5. Protestant generally alleges that Applicant's subsidiary bank,
Security Pacific National Bank ("SPNB"), has failed to fulfill its
obligations under the CRA in Pomona, California. Protestant alleges
that:
(1) S P N B has not made an effort to ascertain the credit needs of
minority and low-income persons in Pomona;
(2) SPNB has not conducted a marketing program directed at
minorities and low-income persons in Pomona;
(3) SPNB's practices have fostered the impression that minorities
and low-income persons in Pomona cannot obtain credit from
SPNB; and
(4) SPNB's credit extensions in Pomona reveal a pattern of discrimination against minority and low-income neighborhoods.
6. See 12 C.F.R. § 262.25(c).
ments in a Spanish language newspaper serving the
Pomona area and also has placed advertisements in a
local publication targeted to low- and moderate-income persons. Applicant also practices some flexibility in its underwriting criteria and loan application
procedures. Accordingly, the Board concludes that
convenience and needs considerations in this case are
consistent with approval of the application.7
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. The acquisition of Bancorp
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, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, and Kelley.
JAMES M C A F E E
Associate Secretary of the Board
Orders Issued Under Sections
Bank Holding Company Act
3 and 4 of the
Banc One Corporation
Columbus, Ohio
Order Approving Acquisition of a Bank Holding
Company
Banc One Corporation, Columbus, Ohio ("Banc
One"), a bank holding company within the meaning of
the Bank Holding Company Act (12 U.S.C. § 1841 et
seq.) (the "Act"), has applied for the Board's approval under section 3 of the Act (12 U.S.C. § 1842) to
acquire The Marine Corporation, Milwaukee, Wisconsin ("Marine") and thereby indirectly to acquire Ma-
7. Protestant also requested that the Board order a public meeting.
Under the Board's rules, the Board may hold a public meeting on an
application to clarify factual issues related to the application and to
provide an opportunity for testimony, if appropriate. 12 U . S . C .
§ 262.25(d). In this case, the Reserve Bank has arranged a private
meeting for this purpose. In light of all the facts of record, the Board
has determined that a public meeting would serve no useful purpose.
Accordingly, the request for a public meeting is denied.
Legal Developments
rine's subsidiary banks. Marine's present bank subsidiaries are listed in Appendix A to this Order.1
Banc One 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 Regulation Y (12 C.F.R. § 225.23(a)(2))
to acquire the following nonbanking subsidiaries of
Marine: Marinebanc Leasing Company, Inc., Milwaukee, Wisconsin, and thereby engage in personal property leasing activities; Marine Bank Services Corporation, Milwaukee, Wisconsin, and thereby engage in
data processing activities; and The Marine Trust Company, N.A., Milwaukee, Wisconsin, and thereby engage in trust company activities. These activities are
authorized for bank holding companies pursuant to the
Board's Regulation Y. 12 C.F.R. §§ 225.25(b)(3), (5)
and (7).
Banc One also has applied under section 4(c)(14) of
the Act (12 U.S.C. § 1843(c)(14)) to acquire the export-trading company subsidiary of Marine, Marine
Financial Services Corporation, St. Thomas, U.S.
Virgin Islands.
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (52 Federal Register 44,482 (1987)). 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 sections 3(c)
and 4(c)(8) of the Act. 2
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 [the] bank is located, by language to that
effect and not merely by implication." Banc One's
1. In connection with this application, Banc One has applied to
acquire warrants equal to 24.9 percent of Marine's voting shares.
These warrants are exercisable only upon the acquisition by any
person or group of persons, of ownership of shares or of warrants or
options to acquire shares, equal to 25 percent or more of Marine's
outstanding common stock.
2. The Board received a letter from the Main Street Business
Association, Columbus, Ohio ("MSBA"), protesting Banc One's
record under the Community Reinvestment Act ("CRA"). The Board
has previously received a similar protest from MSBA in connection
with a prior application by Banc One. See Banc One Corporation, 73
F E D E R A L RESERVE B U L L E T I N 1 2 4 ( 1 9 8 7 ) . I n i t s c o n s i d e r a t i o n o f t h a t
application, the Board found that the CRA record of Banc One's
subsidiary banks was satisfactory. In addition, Banc One made
specific commitments to improve its CRA record and agreed to
provide regular reports to the Reserve Bank detailing its progress in
fulfilling the commitments. Pursuant to its commitment, Banc One has
filed regular reports regarding its CRA activities with the Federal
Reserve Bank of Cleveland, and the record shows that Banc One is
meeting its commitments. Based upon this review and all the reasons
set forth in the Board's earlier Order, the Board has concluded that the
issues raised in this protest do not warrant denial of this application.
175
home state is Ohio.3 Marine owns banks in Wisconsin,
Illinois and Minnesota.
The statute laws of Wisconsin expressly authorize
the acquisition of a banking institution in Wisconsin by
a bank holding company located in a number of states,
including Ohio, if that other state authorizes the acquisition of a financial institution in that state on a
reciprocal basis by a Wisconsin bank holding
company.4 Ohio law expressly authorizes the acquisition of a banking organization in Ohio by a Wisconsin
bank holding company on a reciprocal basis. 5
Wisconsin law also requires that an out-of-state
bank holding company which acquires a Wisconsin
bank that was chartered on or after May 9, 1986, and
has been in existence for less than five years, divest
the Wisconsin bank within two years after the date of
acquisition.6 Marine has one such subsidiary, Marine
Bank South, N.A., Mt. Pleasant, Wisconsin. To comply with the Wisconsin statute, Banc One has committed to divest Marine Bank South, N.A., within the
required time period.
Marine also has a subsidiary bank in Illinois, Marine
Bank Chicago, Chicago, Illinois. The laws of Illinois
allow acquisitions of Illinois banks only by "Midwestern bank holding companies." Marine is a Midwestern bank holding company as defined in Illinois
law, and thus was entitled to acquire the Illinois bank.
Banc One, however, does not qualify as a Midwestern
bank holding company under the Illinois statute, and
therefore is not authorized to acquire an Illinois bank.
The Illinois interstate banking statute provides, however, that if a Midwestern bank holding company,
such as Marine, that controlled an Illinois bank is
subsequently acquired by a non-Midwestern bank
holding company, the Illinois banking commissioner
shall issue an order requiring the Midwestern bank
holding company to divest the Illinois bank within
such time and under such conditions as the commissioner finds appropriate to protect the safety and
soundness of the Illinois bank.7
The Illinois banking commissioner has informed the
Board that the Illinois statute authorizes Banc One to
acquire the Illinois bank in connection with its acqui-
3. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later.
4. Wis. Stat. Ann. § 221.58 (West 1987).
5. Ohio Rev. Code Ann. § 1101.05 (Page 1986). A determination of
reciprocity of the Ohio and Wisconsin statutes has been signed by
both the Superintendent of Banks of Ohio and the Commissioner of
Banking of Wisconsin, the former on December 10, 1986 and the latter
on January 22, 1987.
6. Wis. Stat. Ann. § 221.58(5) (West 1987).
7. See section 3.071(g) of the Illinois Interstate Banking Act, 111.
Rev. Stat. ch. 17 para. 2510.01(g)(1987).
176
Federal Reserve Bulletin • March 1988
sition of Marine, provided that Banc One divests the
Illinois bank within such period as the commissioner
directs. The commissioner has further informed the
Board that he intends to issue such an order after Banc
One acquires Marine, and Banc One has committed to
comply with such an order.
Marine also operates a subsidiary bank in Minnesota, Marine Bank, Bloomington, Minnesota. Minnesota does not authorize an Ohio bank holding company
to acquire a Minnesota bank. In this regard, Banc One
has committed not to consummate its acquisition of
Marine until such time as Marine has divested control
of this subsidiary.
Based on the above commitments, the Board concludes that approval of Banc One's proposal to acquire
Marine is not barred by the Douglas Amendment.
Banc One operates 38 banking subsidiaries located
in Ohio, Indiana, Kentucky and Michigan. Banc One
is the second largest commercial banking organization
in Ohio, controlling deposits of $9.0 billion, representing 13.0 percent of the total deposits in commercial
banks in Ohio.8 Marine is the third largest banking
organization in Wisconsin, controlling 21 banking subsidiaries with deposits of $3.4 billion, representing 9.8
percent of the total deposits in commercial banks in
Wisconsin. Because Banc One does not compete in
Wisconsin or Illinois and will not acquire Marine's
subsidiary in Minnesota, consummation of this proposal would have no significant adverse effect upon
the concentration of commercial banking resources in
these states.
Banc One and Marine do not compete directly in
any banking market. Accordingly, consummation of
this proposal would not result in any adverse effect
upon existing competition in any relevant banking
market. In light of the existence of numerous potential
entrants into the relevant banking markets, the Board
has concluded that consummation of this proposal would not have any significant adverse effect
on probable future competition in any relevant
market.
The financial and managerial resources of Banc One
and Marine are satisfactory. The Board notes that this
proposal will be effected through an exchange of
stock and will not result in any additional debt being
incurred by the combined organization. Considerations relating to the convenience and needs of
the communities to be served by Banc One's and
Marine's subsidiary banks also are consistent with
approval.
With respect to nonbanking subsidiaries, Marine
and Banc One compete in certain areas in leasing, data
processing, and trust activities. Consummation of the
proposal, however, would have a de minimis effect
on existing competition in each of these markets.
Accordingly, the Board concludes that the proposal
would not have any significant adverse effect on
existing or probable future competition in any relevant
market. Furthermore, there is no evidence in the
record to indicate that approval of this proposal would
result in undue concentration of resources, unfair
competition, conflicts of interest, unsound banking
practices, or other adverse effects on the public interest. Accordingly, the Board has determined 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 applications to acquire
the nonbanking subsidiaries of Marine.
The Board also has considered the notice of Banc
One's proposed acquisition of Marine Financial Services Corporation under section 4(c)(14) of the Act.
Based on the facts of record, the Board has determined that disapproval of the proposed acquisition is
not warranted.
Based on the foregoing and other facts of record, the
Board has determined that the applications under
sections 3 and 4 of the Act should be and hereby are
approved, subject to Banc One's commitments and
divestiture proposals. This approval is also subject to
the condition that Banc One obtain all required state
approvals and comply with any required divestitures
under state law. The acquisition of Marine 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 Cleveland, acting
pursuant to delegated authority. The determinations as
to Banc One's nonbanking activities are subject to all
of the conditions contained 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 holding company or any of its
subsidiaries as the Board finds necessary to assure
compliance with the provisions and purposes of the
Act and the Board's regulations and orders issued
thereunder, or to prevent evasion thereof.
By order of the Board of Governors, effective
January 21, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, and Kelley.
JAMES M C A F E E
8. Banking deposit data are as of June 30, 1987.
Associate Secretary of the Board
Legal Developments
APPENDIX
A
Subsidiary
Banks of
Marine
Marine Bank, N.A., Milwaukee, Wisconsin; Marine
Bank West, Delafield, Wisconsin; Peoples Marine
Bank of Green Bay, Green Bay, Wisconsin; Marine
Bank South, N.A., Mt. Pleasant, Wisconsin; Marine
Bank Appleton, N.A., Appleton, Wisconsin; Marine
Bank Dane County, Madison, Wisconsin; Marine First
National Bank, Janesville, Wisconsin; Citizens Marine
National Bank, Stevens Point, Wisconsin; Marine
Bank Southwest, N.A., Elkhorn, Wisconsin; Marine
Bank Monroe, Monroe, Wisconsin; West Bend Marine Bank, West Bend, Wisconsin; Marine Bank Oshkosh, N.A., Oshkosh, Wisconsin; Marine Bank of
Beaver Dam, Beaver Dam, Wisconsin; Marine National Bank of Neenah, Neenah, Wisconsin; Fidelity
Marine Bank, Antigo, Wisconsin; Marine Bank Seymour, N.A., Seymour, Wisconsin; Marine Bank
Campbellsport, Campbellsport, Wisconsin; Firstar
Bank Clintonville, N.A., Clintonville, Wisconsin; Marine Bank Larsen, Larsen, Wisconsin; Marine Bank
Freedom, Town of Freedom, Wisconsin; Marine Bank
Mequon, Mequon, Wisconsin; Marine Bank Chicago,
Chicago, Illinois; and Marine Bank, Bloomington,
Minnesota.
FFB, Inc.
Newark, New Jersey
Philadelphia, Pennsylvania
Order Approving Acquisition of Bank Holding
Companies
FFB, Inc., Newark, New Jersey and Philadelphia,
Pennsylvania ("FFB"), has applied for the Board's
approval pursuant to section 3 of the Bank Holding
Company Act (12 U.S.C. § 1842(a) ("Act")), to become a bank holding company and to acquire First
Fidelity Bancorporation, Newark, New Jersey ("First
Fidelity"), and Fidelcor, Inc., Philadelphia, Pennsylvania ("Fidelcor"), thereby acquiring indirectly the
banking subsidiaries of both First Fidelity and Fidelcor listed in Appendix A to this Order.1 FFB also has
applied for the Board's approval under section 4(c)(8)
1. First Fidelity and Fidelcor will be acquired through respective
mergers with two newly-formed subsidiaries of FFB, FFB Bancorporation and FFB Fidelcor, Inc. Upon consummation of this proposal,
FFB Inc. (Applicant) will be renamed First Fidelity Bancorporation.
The bank holding company which is presently named First Fidelity
Bancorporation will change its name to First Fidelity Incorporated
which, along with Fidelcor, will be a second tier bank holding
company of the new bank holding company, First Fidelity Bancorporation.
28
of the Act (12 U.S.C. § 1843(c)(8)) to acquire the
various nonbanking subsidiaries of both First Fidelity
and Fidelcor, listed in Appendix B to this Order. FFB
also has provided notice to the Board under section
4(c)(14) of the Act of its intention to invest in First
Fidelity Tradexport Corporation, Newark, New Jersey, an export trading company. Finally, FFB has
provided notice to the Board under 12 C.F.R.
§ 211.4(b)(3) of its intention to indirectly acquire control of the Edge Act Corporation subsidiaries of Fidelcor.
Notice of the applications, affording opportunity for
interested persons to submit comments and views, has
been duly published (52 Federal Register 43,672
(1987)). 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
sections 3(c) and 4(c)(8) of the Act.
FFB is a nonoperating company which seeks to
acquire First Fidelity and Fidelcor. First Fidelity, with
approximately $11.32 billion in domestic deposits, is
the largest commmercial banking organization in New
Jersey, controlling approximately 18.7 percent of total
deposits in commercial banking organizations in the
state.2 First Fidelity ranks 35th among commercial
banking organizations in the United States. Fidelcor is
the fourth largest commercial banking organization in
Pennsylvania, with domestic deposits of $8.83 billion,
controlling approximately 7.4 percent of the total
deposits in commercial banking organizations in Pennsylvania. Fidelcor ranks 45th among commercial banking organizations in the United States. Upon consummation of this proposal, FFB would become the 18th
largest commercial banking organization in the United
States, controlling approximately one percent of total
domestic deposits.
Section 3(d) of the Act (12 U.S.C. § 1842(d)), the
Douglas Amendment, prohibits the Board from approving any 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 the bank is located, by language to that
effect and not merely by implication." The Board
previously has determined that Pennsylvania law permits an eligible New Jersey bank holding company,
subject to state approval, to acquire a bank or bank
holding company located in Pennsylvania.3 Based on
the foregoing and its own review of the record, the
Board has determined that the proposed acquisition is
specifically authorized by the statute laws of Pennsyl-
2. All state deposit data are as of June 30, 1987.
3. Midlantic
Corporation,
73
FEDERAL
RESERVE
BULLETIN
(1987); 1986 Pa. Laws N o . 69 (effective August 24, 1986).
63
178
Federal Reserve Bulletin • March 1988
vania, and thus Board approval is not prohibited by
the Douglas Amendment.
The Board has considered the effects of the proposal
upon competition in the relevant banking markets.
First Fidelity and Fidelcor both control banking organizations which compete in the Philadelphia/Trenton
banking market.4 Fidelcor is the second largest commercial banking organization in the market, with 15.1
percent of total deposits in commercial banking organizations. First Fidelity is the eighth largest commercial banking organization in the market, with 3.4
percent of total deposits in commercial banking organizations. Upon consummation of this proposal, FFB
would become the largest commercial banking organization in the market, controlling 18.5 percent of total
deposits in commercial banks.
The Philadelphia/Trenton banking market is considered unconcentrated. The Herfindahl-Hirschman Index for the market is 985 which would increase by 102
points at consummation to 1087. Although this acquisition would eliminate some existing competition between First Fidelity and Fidelcor in that market, the
Board concludes that consummation of the proposal
would not have a substantial adverse effect on existing
competition in any relevant banking market.
The Board also has considered the effects of FFB's
proposal on probable future competition in the markets in which First Fidelity and Fidelcor, but not both,
compete. In light of the number of probable future
entrants into each of these markets, the Board concludes that consummation of this proposal would not
have a significant adverse effect on probable future
competition in any relevant banking market.
In evaluating managerial resources with respect to
this proposal, the Board has carefully considered
certain violations by First Fidelity and Fidelcor of the
Currency and Foreign Transactions Reporting Act
("CFTRA") and the regulations thereunder.5 The
Board notes that First Fidelity and Fidelcor have
established comprehensive policies and procedures to
ensure future compliance with CFTRA. Examiners
from the primary regulators of the various bank subsidiaries of First Fidelity and Fidelcor have reviewed
the sufficiency of these compliance procedures and
their efficacy in correcting the deficiencies. The Board
also has consulted with appropriate enforcement agencies, and has considered the past records of compliance with the law of First Fidelity and Fidelcor. Based
upon the foregoing and other facts of record, the
4. The Philadelphia/Trenton banking market consists of Philadelphia, Bucks, Montgomery, Chester and Delaware Counties in Pennsylvania, and Burlington, Camden, Gloucester and Mercer Counties
in N e w Jersey. All market data are as of June 30, 1986.
5. 31 U.S.C. § 5311 et seq.\ 31 C.F.R. § 103.
Board has concluded that the managerial resources of
Applicant, First Fidelity, Fidelcor, and their subsidiary banks, are consistent with approval.
Financial factors and convenience and needs considerations are also consistent with approval of the
applications.
As indicated above, FFB also has applied, pursuant
to section 4(c)(8), to acquire the nonbanking subsidiaries of First Fidelity and Fidelcor. First Fidelity and
Fidelcor operate nonbanking subsidiaries that compete in the activities of residential and commercial
mortgage banking, commercial finance and factoring,
retail discount brokerage services, leasing and equipment leasing. The markets for these activities possess
numerous competitors and are regional or national in
scope. Accordingly, the Board concludes that this
proposal will not have any significant adverse effect
upon competition in any relevant market.
There is no evidence in the record to indicate that
approval of this proposal would result in undue concentration of resources, decreased or unfair competition, conflicts of interests, unsound banking practices,
or other adverse effects on the public interest. Accordingly, the Board has determined that the balance of
public interest factors it must consider under section
4(c)(8) of the Act is favorable and consistent with
approval of the applications to acquire the nonbanking
subsidiaries of First Fidelity and Fidelcor.
The Board also has considered the notice of FFB's
proposed acquisition of First Fidelity Tradexport Corporation under section 4(c)(14) of the Act and the
acquisition of control of Fidelity International Bank
and Fidelity Overseas Investment, Inc. under the
Edge Act. Based on the facts of record, the Board has
determined that disapproval of the proposed investments is not warranted.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved, subject to the express
determination of the Pennsylvania Deputy Secretary
of Banking that the applications comply with all of the
requirements of Pennsylvania law. The acquisitions
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
Philadelphia, acting pursuant to delegated authority.
The determinations as to FFB's nonbanking activities
are subject to all of the conditions contained 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 holding company or any of its subsidiaries as the Board finds
Legal Developments
necessary to assure compliance with the provisions
and purposes of the Act and the Board's regulations
and orders issued thereunder, or to prevent evasion
thereof.
By order of the Board of Governors, effective
January 11, 1988.
Voting for this action: Chairman Greenspan and Governors
Seger, Angell, and Kelley. Absent and not voting: Governors
Johnson and Heller.
JAMES M C A F E E
Associate Secretary of the Board
APPENDIX
A
Bank Subsidiaries
to be
Acquired
First Fidelity Bancorporation: First Fidelity Bank,
N.A., New Jersey, Newark, New Jersey; First Fidelity Bank, N.A., North Jersey, Totowa, New Jersey;
First Fidelity Bank, N.A., South Jersey, Burlington,
New Jersey; Morris Savings Bank, Morristown, New
Jersey; and First Fidelity Bank, Princeton, South
Brunswick, New Jersey.
Fidelcor, Inc.: Fidelity Bank, N.A., Malvern, Pennsylvania; Fidelity Bank, Delaware, New Castle, Delaware; Merchants Bancorp, Inc., Allentown, Pennsylvania;
Merchants
Bank,
N.A.,
Allentown,
Pennsylvania; Number One State Bank, Wilkes-Barre,
Pennsylvania; and Merchants Bank, North, WilkesBarre, Pennsylvania.
APPENDIX
Nonbanking
B
Subsidiaries
to be
Acquired
First Fidelity Bancorporation: First Fidelity Capital
Corporation, Newark, New Jersey, and thereby engage in commercial and consumer lending pursuant to
section 225.25(b)(1) and leasing pursuant to section
225.25(b)(5) of the Board's Regulation Y; First Fidelity
Service Corporation, Newark, New Jersey, and
thereby engage in sales financing pursuant to section
225.25(b)(1) of the Board's Regulation Y; First Fidelity
Community Development Corporation, Atlantic City,
New Jersey, and thereby engage in community development activities pursuant to section 225.25(b)(6) of
the Board's Regulation Y; First Fidelity Brokers, Inc.,
Newark, New Jersey, and thereby engage in discount
securities brokerage activities pursuant to section
225.25(b)(15) of the Board's Regulation Y; First Fidelity Trust, N.A., Florida, Boca Raton, Florida, and
179
thereby engage in trust company functions pursuant to
section 225.25(b)(3) of the Board's Regulation Y; and
First Fidelity Trust Company, New York, New York,
New York, and thereby engage in trust company
functions pursuant to section 225.25(b)(3) of the
Board's Regulation Y.
Fidelcor, Inc.: Fidelcor Business Credit Corporation, New York, New York, and thereby engage in
factoring and originating and servicing extensions of
credit pursuant to section 225.25(b)(1) of the Board's
Regulation Y, and data processing pursuant to section
225.25(b)(7) of the Board's Regulation Y; Fidelcor
Business Credit Corporation of California, Inc., Los
Angeles, California and thereby engage in originating
and servicing extensions of credit pursuant to section
225.25(b)(1) of the Board's Regulation Y, and data
processing pursuant to section 225.25(b)(7) of the
Board's Regulation Y; Latimer & Buck, Inc., Philadelphia, Pennsylvania, and thereby engage in originating and servicing extensions of credit pursuant to
section 225.25(b)(1) of the Board's Regulation Y,
act as investment advisor pursuant to section
225.25(b)(4)(iii) of the Board's Regulation Y, and appraise real estate pursuant to section 225.25(b)(13) of
the Board's Regulation Y; Florida Commercial Mortgage Corp., Orlando, Florida, and thereby engage in
originating and servicing extensions of credit pursuant
to section 225.25(b)(1) of the Board's Regulation Y,
and act as investment advisor pursuant to section
225.25(b)(4) of the Board's Regulation Y; Corporate
Programs, Inc., Philadelphia, Pennsylvania, and
thereby engage in originating and servicing extensions
of credit pursuant to section 225.25(b)(1) of the
Board's Regulation Y, and act as investment advisor
pursuant to section 225.25(b)(4) of the Board's Regulation Y; Fidelcor Mortgage Corporation, Franklin,
Georgia, and thereby engage in originating and servicing extensions of credit pursuant to section
225.25(b)(1) of the Board's Regulation Y and engage in
the sale of credit-related life, accident and health
insurance pursuant to section 225.25(b)(8) of the
Board's Regulation Y; Fidelcor Mortgage Corporation
of Georgia, Inc., Franklin, Georgia, and thereby engage in originating and servicing extensions of credit
pursuant to section 225.25(b)(1) of the Board's Regulation Y and engage in the sale of credit-related life,
accident and health insurance pursuant to section
225.25(b)(8) of the Board's Regulation Y; Fidelity
Credit Corporation, Philadelphia, Pennsylvania and
thereby engage in servicing loans pursuant to section
225.25(b)(1) of the Board's Regulation Y; FCC-PR,
Inc., Puerto Rico, and thereby engage in servicing
loans pursuant to section 225.25(b)(1) of the Board's
Regulation Y; Fidelcor Brokerage Services, Inc., Philadelphia, Pennsylvania, and thereby engage in dis-
180 Federal Reserve Bulletin • March 1988
count securities brokerage activities pursuant to section 225.25(b)(15) of the Board's Regulation Y;
Fidelcor Trading, Inc., Philadelphia, Pennsylvania,
and thereby engage in executing and clearing options
in foreign currency pursuant to section 225.25(b)(18) of
the Board's Regulation Y; Merchants Life, Allentown,
Pennsylvania, and thereby engage in the reinsurance
of credit life, disability and health insurance written by
an outside carrier in connection with extensions of
credit by Merchants Bancorp, Inc., pursuant to section 225.25(b)(8) of the Board's Regulation Y; and
Fidelcor Life Insurance Company, Phoenix, Arizona,
and thereby engage in the reinsurance of credit life,
disability and health insurance written by an outside
insurance carrier in connection with extensions of
credit by Fidelity Bank, N.A. and its affiliates, pursuant to section 225.25(b)(8) of the Board's Regulation Y.
Marshall & Ilsley Corporation
Milwaukee, Wisconsin
Order Approving Acquisition of a Bank Holding
Company
Marshall & Ilsley Corporation, Milwaukee, Wisconsin
("M&I"), 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 Central Wisconsin Bankshares, Inc.,
Wausau, Wisconsin ("Central"), and thereby indirectly to acquire Central's bank holding company
subsidiary, CWB Holdings Onalaska, Inc., Wausau,
Wisconsin, and its 14 bank subsidiaries.1 M&I has also
applied under section 4(c)(8) of the Act to acquire
indirectly Wisconsin Valley Trust Company, Wausau,
which engages in trust company activities; and First
American Investment, Inc., Wausau, which engages in
discount brokerage services. These activities have
been determined by the Board to be closely related to
banking and permissible for bank holding companies.
12 C.F.R. §§ 225.25(b)(3) and (15).
1. Central's bank subsidiaries are: Bank of Onalaska, Onalaska;
Bank of Plover, Plover; Central National Bank of Wausau, Wausau;
Community First Bank, N e w Lisbon; Community State Bank, Eau
Claire; Eagle River State Bank, Eagle River; First American National
Bank, Wausau; First National Bank of Neillsville, Neillsville; Mosinee Commercial Bank, Mosinee; Northern National Bank, Rhinelander; Tri-County State Bank of Marshfield, Marshfield; Union
National Bank of Ashland, Ashland; and Valley View Bank, LaCrosse, all in Wisconsin. Included as one of Central's bank subsidiaries is the Peoples Bank of Antigo, Antigo, Wisconsin. Central has
received approval to acquire this bank, but has not yet consummated
the acquisition.
Notice of the applications, affording an opportunity
for interested persons to submit comments, has been
duly published (52 Federal Register 31,815 (1987)).
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
sections 3(c) and 4(c)(8) of the Act.
M&I is the second largest commercial banking organization in Wisconsin2 and controls aggregate deposits of approximately $3.9 billion, representing 12.3
percent of total deposits in commercial banking organizations in the state.3 Central is the eighth largest
commercial banking organization in Wisconsin, controlling deposits of approximately $631.6 million, representing 2.0 percent of total deposits in commercial
banking organizations in the state. 4 Upon consummation of the proposal and the planned divestiture, M&I
would remain the second largest commercial banking
organization in Wisconsin, controlling deposits of approximately $4.5 billion, representing 14.3 percent of
total deposits in commercial banking organizations in
the state. Accordingly, consummation of this proposal
would not have any significant adverse effect on the
concentration of banking resources in the state.
M&I's subsidiary banks compete directly with Central's subsidiary banks in five banking markets: the
Stevens Point, Wausau, Neillsville, Rhinelander and
Wood banking markets.
In the Stevens Point banking market,5 M&I is the
largest of 12 commercial banking organizations, controlling deposits of $143.0 million, representing 37.6
percent of the total deposits in commercial banking
organizations in the market. Central is the third largest
commercial banking organization in the banking market, controlling deposits of $25.2 million, representing
6.6 percent of the total deposits in commercial banking
organizations in the market. The Stevens Point banking market is concentrated, with the market share of
the four largest commercial banking organizations
increasing from 74.6 percent to 79.6 percent. Upon
consummation of this proposal, M&I would control
deposits of $168.2 million, representing 44.2 percent of
the total deposits in commercial banks in the market,
and the Herfindahl-Hirschman Index ("HHI") would
increase by 496 points to 2698.6
2. M&I has 29 bank subsidiaries in Wisconsin and one in Arizona.
3. All banking data are as of June 30, 1986.
4. Data include the Peoples Bank of Antigo.
5. The Stevens Point banking market is approximated by Portage
County, Iola and Scandinavia townships in Waupaca County, and
Plainfield and Hancock townships in Waushara County, all in Wisconsin.
6. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is above 1800 is considered highly concentrated. In
such markets, the Department is likely to challenge a merger that
Legal Developments
In order to mitigate the adverse competitive effects
that would otherwise result from consummation of this
proposal, M&I has committed to divest one of its
banking subsidiaries, M&I Bank of Park Ridge, on or
before consummation of the proposed acquisition to a
group of individuals who are not affiliated with any
other depository institution in the market.7 After the
proposed divestiture, and upon consummation of this
proposal, M&I would remain the largest banking organization in the market, controlling 39.5 percent of
the total market deposits. The four-firm concentration
ratio would be 76.5 percent and the HHI would be
2370.
Although consummation of this proposal would
eliminate some existing competition in the Stevens
Point banking market, numerous other commercial
banks would continue to operate in the market after
consummation of this proposal. Moreover, the number
of competitors in the market will remain unchanged. In
addition, the Board has considered the presence of
thrift institutions in the banking market in its analysis
of this proposal.8 Based upon the number, size and
market share of thrift institutions in the market, the
Board has concluded that thrift institutions exert a
significant competitive influence that mitigates the
anticompetitive effects of this proposal in the Stevens
Point banking market.9
increases the HHI by more than 50 points. 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. The Justice Department has stated that the higher than normal HHI thresholds for
screening bank mergers for anticompetitive effects implicitly recognizes the competitive effect of limited-purpose lenders and other
non-depository financial entities. The Department has informed the
Board that, in light of the proposed divestiture, the acquisition will not
have a significantly adverse effect upon competition in the Stevens
Point market.
7. The Board's Policy with regard to divestitures intended to
remedy the anticompetitive effects resulting from a merger or acquisition proposal requires that divestitures must occur on or before
consummation. Barnett Banks of Florida, Inc., 68 FEDERAL RESERVE
B U L L E T I N 1 9 0 ( 1 9 8 2 ) ; InterFirst
Corporation,
6 8 F E D E R A L RESERVE
BULLETIN 243 (1982).
8. 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
Bancorporation,
7 0 F E D E R A L RESERVE
BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL
RESERVE BULLETIN 802 (1983); and First Tennessee National Corporation,
6 9 FEDERAL RESERVE B U L L E T I N 2 9 8 ( 1 9 8 3 ) .
9. If 50 percent of deposits held by thrift institutions in the Stevens
Point banking market were included in the calculation of market
concentration, after the divestiture, the share of total deposits held by
the four largest organizations in the market would be 69.9 percent.
M&I would control 28.5 percent of the market's deposits and Central
would control 5.7 percent of the market's deposits. The HHI would
increase by 92 points to 1849.
181
In the Wausau banking market,10 M&I is the fifth
largest of 14 commercial banking organizations, controlling deposits of $50.9 million, representing 7.3
percent of the total deposits in commercial banking
organizations in the market. Central is the largest
commercial banking organization in the banking market, controlling deposits of $229.9 million, representing 33.1 percent of the total deposits in commercial
banking organizations in the market. The Wausau
banking market is moderately concentrated, with the
four largest commercial banking organizations controlling 58.9 percent of the deposits in commercial banks
in the market. Upon consummation of this proposal,
M&I would become the largest commercial banking
organization in the market, controlling deposits of
$280.8 million, representing 40.4 percent of the total
deposits in the market. The four-firm concentration
would increase by 7.7 percentage points to 66.6 percent, and the HHI would increase by 483 points to
2005.
Although consummation of this proposal would
eliminate some existing competition in the Wausau
banking market, numerous other commercial banks
would continue to operate in the market after consummation of this proposal. In addition, the market would
remain unconcentrated. Moreover, the Board has considered the presence of thrift institutions in the market. Based upon the number, size and market share of
thrift institutions in the market, the Board has concluded that thrift institutions exert a significant competitive influence that mitigates the anticompetitive
effects of this proposal in the Wausau banking
market.11
The Neillsville, Rhinelander and Wood banking
markets12 are moderately concentrated and would
remain moderately concentrated upon consummation
of this proposal. In view of the market shares of the
resulting organization and the small increase in concentration, consummation of this proposal would not
have a substantial adverse effect upon competition in
10. The Wausau banking market is approximated by the southern
three-fifths of Lincoln County and Marathon County, excluding
Holton, Hull, Brighton, Spencer, McMillan and Day townships, all in
Wisconsin.
11. If 50 percent of deposits held by thrift institutions in the Wausau
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 be 56.9 percent. M&I would control 6.3 percent
of the market's deposits and Central would control 28.4 percent of the
market's deposits. The HHI would increase by 358 points to 1543.
12. The Neillsville banking market is approximated by Clark
County and Holton, Hull and Brighton townships in Marathon
County, all in Wisconsin. The Rhinelander banking market is approximated by Vilas and Oneida Counties, Forest County excluding Alvin
and Popple River townships, and the northern two-fifths of Lincoln
County, all in Wisconsin. The Wood banking market is approximated
by Wood County and Spencer, McMillan and Day townships in
Northern County, all in Wisconsin.
182 Federal Reserve Bulletin • March 1988
the Neillsville, Rhinelander and Wood banking
markets.13
On the basis of the foregoing and other facts of
record, the Board concludes that consummation of the
proposal would not have a substantial adverse effect
on existing competition in the Stevens Point, Wausau,
Neillsville, Rhinelander and Wood banking markets.
The Board has considered the effects of this proposal on probable future competition in the markets in
which only one of the two holding companies competes. In view of the number of probable future
entrants into the market, the Board concludes that
consummation of this proposal would not have any
significant adverse effect on probable future competition in any relevant banking market.
The financial and managerial resources of M&I,
Central and their subsidiary banks are consistent with
approval. Considerations relating to the convenience
and needs of the communities to be served are also
consistent with approval.
M&I has also applied, pursuant to section 4(c)(8) of
the Act, to acquire Central's nonbanking subsidiaries
and thereby engage in trust company activities and
discount brokerage services. M&I operates a nonbanking subsidiary that competes with Central in trust
company activities. Central's trust company activities
are insignificant14 in the market where M&I's trust
company activities are concentrated, and M&I's trust
company activities are relatively insignificant in the
markets where Central's trust company activities are
concentrated. In addition, there are numerous existing
and potential competitors in the relevant markets for
trust company activities. Furthermore, M&I does not
engage in discount brokerage activities. Accordingly,
the Board concludes that this proposal will not have
any significant adverse effect upon competition in the
proposal's nonbanking activities in any relevant market.
There is no evidence in the record to indicate that
approval of this proposal would result in undue concentration of resources, decreased or unfair competition, conflicts of interests, unsound banking practices,
or other adverse effects on the public interest. Accordingly, the Board has determined that the balance of
13. In the Neillsville banking market, upon consummation, the
HHI would increase by 22 points to 1173 and the resulting organization's market share would be 12.2 percent. In the Rhinelander market,
upon consummation, the HHI would increase by 339 points to 1423
and the resulting organization's market share would be 26.1 percent.
In the Wood banking market, upon consummation, the HHI would
increase by 150 points to 1434 and the resulting organization's market
share would be 18.9 percent.
14. Central derives 0.4 percent of its trust company activity from
the market where M&I's trust company activities are concentrated.
M&I derives 1.8 percent of its trust company activity from the
markets where Central's trust company activities are concentrated.
public interest factors it must consider under section
4(c)(8) of the Act is favorable and consistent with
approval of the applications to acquire Central's nonbanking subsidiaries and activities.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved subject to M&I's commitment to divest a banking subsidiary in the Stevens
Point banking market. The acquisition of Central 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 Chicago,
acting pursuant to delegated authority. The determinations as to Applicant's nonbanking activities are
subject to all of the conditions contained 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 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.
By order of the Board of Governors, effective
January 27, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, and Kelley.
JAMES M C A F E E
Associate Secretary of the Board
Shawmut National Corporation
Boston, Massachusetts
Order Approving Formation of a Bank Holding
Company
Shawmut National Corporation, Boston, Massachusetts ("Shawmut"), 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 the
successor by merger to Hartford National Corporation, Hartford Connecticut ("HNC"), as well as the
successor by merger to Shawmut Corporation, Boston, Massachusetts ("SC"), and thereby indirectly to
acquire HNC's ten subsidiary banks1 in Connecticut,
1. The subsidiary banks of H N C are: The Connecticut National
Bank, Hartford, Connecticut; Seymour Trust Company, Seymour,
Connecticut; Chester Bank, Chester, Connecticut; State Savings
Bank, Southington, Connecticut; Arlington Trust Company, Law-
Legal Developments
Massachusetts and Rhode Island, as well as SC's nine
subsidiary banks2 in Connecticut and Massachusetts.
Shawmut has also applied under section 4(c)(8) of
the Act (12 U.S.C. § 1843(c)(8)) to acquire the nonbanking subsidiaries of HNC and SC listed in Appendix A to this Order.3
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (52 Federal Register 46,532 (1987)). 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 sections 3(c)
and 4(c)(8) of the Act.
Section 3(d) of the Act, the Douglas Amendment,
prohibits the Board from approving an application by a
bank holding company to acquire a bank located
outside of the bank holding company's home state,
unless the 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."4 Shawmut's home state is Massachusetts. The Board has previously determined that the
interstate banking statutes of Connecticut and Rhode
Island expressly authorize a Massachusetts bank holding company, such as Shawmut, to acquire banking
organizations in those states. Accordingly, approval of
Shawmut's proposal to acquire HNC and SC is not
barred by the Douglas Amendment.5
HNC, which controls subsidiary banks in Connecticut, Massachusetts and Rhode Island, is the second
largest commercial banking organization in Connecticut, controlling deposits of $6.1 billion, representing
24.8 percent of the total deposits in commercial banks
in that state.6 HNC is the sixth largest commercial
rence, Massachusetts; The Provident Institution for Savings in the
Town of Boston, Boston, Massachusetts; First Bristol County National Bank, Attleboro Falls, Massachusetts; Framingham Trust Company, Framingham, Massachusetts; First Bank, Chelmsford, Massachusetts; and People's Bank, N . A . , Johnston, Rhode Island.
2. The subsidiary banks of SC are: Shawmut Bank, N . A . , Boston,
Massachusetts; Shawmut Bank of Cape Cod, N . A . , Orleans, Massachusetts; Shawmut Bank of Franklin County, Greenfield, Massachusetts; Shawmut Bank of Hampshire County, N . A . , Amherst, Massachusetts; Shawmut Bank of Southeastern Massachusetts, N.A., N e w
Bedford, Massachusetts; Shawmut First Bank and Trust Company,
Springfield, Massachusetts; Shawmut Worcester County Bank, N . A . ,
Worcester, Massachusetts; Shawmut Home Bank, Meriden, Connecticut; and Shawmut Fidelity Bank, Stamford, Connecticut.
3. In connection with this application, HNC and SC have each
requested approval to exercise options for 24.9 percent of the other's
voting shares.
4. 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 date is later. 12 U.S.C.
§ 1842(d).
5. Bank of New England Corporation, 70 FEDERAL RESERVE BULLETIN 3 7 4 ( 1 9 8 4 ) ; Bank
of Boston
Corporation,
7 0 F E D E R A L RESERVE
BULLETIN 7 3 7 (1984).
6. State banking data are as of June 30, 1987.
183
banking organization in Massachusetts, controlling
deposits of $2.4 billion, representing 3.9 percent of the
total deposits in commercial banks in that state, and
the fourth largest commercial banking organization in
Rhode Island, controlling deposits of $501 million,
representing 6.0 percent of the total deposits in commercial banks in that state. SC is the seventh largest
commercial banking organization in Connecticut, controlling deposits of $621 million, representing 2.5 percent of the total deposits in commercial banks in
Connecticut. SC also is the third largest commercial
banking organization in Massachusetts, controlling
deposits of $8.2 billion, representing 13.9 percent of
the total deposits in commercial banks in that state.
Upon consummation of the proposed acquisition,
Shawmut would be the largest commercial banking
organization in Connecticut, controlling $6.7 billion in
deposits, representing an approximate 27.3 percent
share of deposits in banks in that state. Also, Shawmut
would become the third largest commercial banking
organization in Massachusetts, controlling $10.6 billion in deposits, representing approximately 18.0 percent of the deposits in banks in that state, and the
fourth largest commercial banking organization in
Rhode Island. In the Board's view, consummation of
this proposal would have no significant adverse effect
upon the concentration of commercial banking resources in Connecticut, Massachusetts, or Rhode Island.
HNC and SC compete directly in the Boston and
New Bedford banking markets in Massachusetts; the
Hartford, New Haven, New London, and Waterbury
banking markets in Connecticut; and the Metropolitan
New York-New Jersey banking market.
In the New Bedford banking market,7 HNC is the
fifth largest commercial banking organization, controlling $47.9 million in deposits, which represents 8.3
percent of the total deposits in banks in that market.
SC is the largest commercial banking organization,
controlling $211 million in deposits, which represents
36.5 percent of total deposits in commercial banks in
the market. Upon consummation of this proposal,
Shawmut would become the largest commercial banking organization in the market, controlling 44.8 percent
of the deposits in commercial banks in the market. The
market share of the four largest commercial banking
organizations would increase from 85.6 percent to 93.9
percent and the Herfindahl-Hirschman Index
("HHI") would increase by 606 points to 2859.8
7. The N e w Bedford banking market includes: the N e w Bedford
RMA, plus the town of Wareham and that portion of Freetown not
already included in the RMA.
8. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is above 1800 is considered highly concentrated. In
184
Federal Reserve Bulletin • March 1988
In the Hartford banking market,9 HNC is the largest
commercial banking organization, controlling $3.3 billion in deposits, which represents 37.8 percent of the
total deposits in banks in that market. SC is the tenth
largest commercial banking organization, controlling
$83.3 million in deposits, which represents 1.0 percent
of total deposits in commercial banks in the market.
Upon consummation of this proposal, Shawmut would
be the largest commercial banking organization in the
market, controlling 38.8 percent of the deposits in
commercial banks in the market. The HHI would
increase by 73 points to 2966.
In the New Haven banking market,10 HNC is the
largest commercial banking organization, controlling
$688 million in deposits, which represents 23.6 percent
of the total commercial bank deposits in that market.
SC is the fifth largest commercial banking organization, controlling $220 million in deposits, which represents 7.5 percent of total deposits in commercial banks
in the market. Upon consummation of this proposal,
Shawmut would become the largest commercial banking organization in the market, controlling 31.1 percent
of the deposits in commercial banks. The HHI would
increase by 355 points to 1896.
In the New London banking market,11 HNC is the
largest commercial banking organization, controlling
$361 million in deposits, which represents 33.6 percent
of the total deposits in that area. SC is the ninth largest
commercial banking organization, controlling $13 million in deposits, which represents 1.2 percent of total
deposits in commercial banks in the market. Following
consummation of this proposal, Shawmut would be
the largest commercial banking organization, controlling 34.9 percent of the deposits in commercial banks
in the market. The HHI would increase by 83 points to
2302.
Although consummation of this proposal would
eliminate existing competition between HNC and SC
in the New Bedford, Hartford, New Haven, and New
London banking markets, numerous other commercial
banking organizations would continue to operate in
each market. In addition., the Board has considered the
presence of thrift institutions in these banking markets
in its analysis of this proposal. These institutions
account for over 50 percent of the total deposits in
each of the markets. The Board previously has indicated that thrift institutions have become, or have the
potential to become, major competitors of commercial
banks.12 Thrift institutions already exert a considerable competitive influence in the market as providers
of NOW accounts and consumer loans, and many are
engaged in the business of making commercial loans
and accepting demand deposits. Based upon the number, size, market shares and commercial lending activities of thrift institutions in the New Bedford, Hartford, New Haven, and New London markets, the
Board has concluded that thrift institutions exert a
significant competitive influence that mitigates the
anticompetitive effects of this proposal in these
markets.13
In the Boston banking market,14 HNC is the sixth
largest commercial banking organization, controlling
$1.5 billion in deposits, which represents 4.2 percent
of the total deposits in that area. SC is the fourth
largest commercial banking organization, controlling
$4.35 billion in deposits, which represents 12.0 percent
of total deposits in commercial banks in the market.
Following consummation of this proposal, Shawmut
would be the third largest commercial banking organi-
12. National City Corporation, 70 FEDERAL RESERVE BULLETIN
743 (1984); The Chase Manhattan Corporation, 70 FEDERAL RESERVE
B U L L E T I N 5 2 9 ( 1 9 8 4 ) ; NCNB
such markets, the Department is likely to challenge a merger that
increases the HHI by more than 50 points. 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. The Justice Department has stated that the higher than normal HHI thresholds for
screening bank mergers for anticompetitive effects implicitly recognizes the competitive effect of limited-purpose lenders and other
nondepository financial entities.
9. The Hartford banking market includes: the Hartford RMA minus
the Tolland County township of Mansfield and the Windham County
township of Windham, plus the Windham County township of Ashford, the Hartford County township of Hartland and the Tolland
County township of Union, and the remaining portions of Plymouth
and East Haddam not already included in the RMA.
10. The N e w Haven banking market includes the N e w Haven
RMA.
11. The N e w London banking market includes: the N e w London
RMA plus the Windham County townships of Canterbury, Plainfield
and Sterling; the N e w London County townships of Lyme and
Voluntown and that portion of Hopkington, Rhode Island, not already
included in the RMA.
Bancorporation,
7 0 F E D E R A L RESERVE
BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL
RESERVE BULLETIN 802 (1983); First Tennessee Corporation,
69
F E D E R A L RESERVE B U L L E T I N 2 9 8 ( 1 9 8 3 ) .
13. The following data indicate the market share and the change in
the HHI if 50 percent of the deposits controlled by thrift institutions in
these markets were included in the calculation of market concentration:
In the N e w Bedford market, H N C would control 4.0 percent of the
market's deposits and SC would control 17.7 percent of the market's
deposits. The HHI would increase by 143 points to 1468.
In the Hartford banking market, H N C would control 26.0 percent of
the market's deposits and SC would control 0.6 percent of the
market's deposits. The HHI would increase by 33 points to 1448.
In the N e w Haven banking market, H N C would control 13.7
percent of the market's deposits, and SC would control 4.4 percent of
the market's deposits. The HHI would increase by 120 points to 916.
In the N e w London banking market, H N C would control 19.0
percent of the market's deposits, and SC would control 0.7 percent of
the market's deposits. The HHI would increase by 26 points to 2302.
14. The Boston banking market includes: the Boston RMA minus
the N e w Hampshire towns of Brentwood, Chester, and Derry, plus
the Massachusetts towns of Ayer, Berlin, Groton, Harvard, Pepperell
and Shirley, and those portions of Bellingham, Carver, Lakeville,
Middleboro and Plymouth not already included in the RMA.
Legal Developments
zation in the market, controlling 16.2 percent of the
deposits in commercial banks in the market. The HHI
would increase by 100 points to 1470.
In the Waterbury banking market,15 HNC is the
third largest commercial banking organization, controlling $154 million in deposits, which represents 13.6
percent of the total deposits in that market. SC is the
seventh largest commercial banking organization in
the market, controlling $10 million in deposits, which
represents 0.9 percent of total deposits in commercial
banks in the market. Upon consummation of this
proposal, Shawmut would be the third largest commercial banking organization, controlling 14.5 percent
of the deposits in commercial banks in the market. The
HHI would increase by only 25 points to 3432.
Finally, in the Metropolitan New York-New Jersey
banking market,16 HNC and SC are two of the smaller
competitors in the market and will control less than 1
percent of the total deposits in the market following
consummation of this proposal.
On the basis of the above and other facts of record,
the Board finds that consummation of Shawmut's
proposal would not have a significant adverse effect on
existing competition in any relevant market. The
Board also has considered the effects of Shawmut's
proposal on probable future competition in markets in
which HNC and SC do not both compete. In light of
the market concentration and the number of probable
future entrants into the markets, the Board concludes
that consummation of this proposal would not have a
significant adverse effect on probable future competition in any relevant market.
The Board previously has indicated that a bank
holding company should serve as a source of financial
strength to its subsidiary banks. The Board notes that
Shawmut's capital on a pro forma basis is well above
the minimum levels in the Board's Capital Adequacy
Guidelines, and that the proposed acquisition involves
an exchange of shares with no assumption of additional debt. Accordingly, the Board believes the financial resources of Shawmut and its subsidiaries are
consistent with approval of this proposal.
The Board also has considered Shawmut's and its
subsidiaries' managerial resources, particularly with
regard to previous violations by HNC of the Currency
and Foreign Transactions Reporting Act (31 U.S.C.
§ 5311 et seq.) ("CFTRA"). In connection with earlier
proposals by HNC, the Board reviewed HNC's
15. The Waterbury banking market includes: the Waterbury RMA
minus the Litchfield County township of Plymouth and the N e w
Haven County townships of Beacon Falls and Southbury.
16. The Stamford-Norwalk area is part of Metropolitan N e w YorkN e w Jersey market and includes: the city of Stamford, plus the
Fairfield County townships of Darien, Greenwich, N e w Canaan,
Norwalk, Redding, Ridgefield, Weston, Westport and Wilton.
185
CFTRA violations that occurred in 1984 by a branch of
HNC's lead bank, Connecticut National Bank
("CNB"). 17 Subsequent examinations, however, have
shown that improved compliance procedures have
been put in place at HNC's subsidiary banks. Based
upon HNC's overall record, including its commitments to improve its CFTRA procedures, the Board
concluded that the overall managerial considerations
were favorable. The Board noted that the violations at
the branch occurred shortly after HNC had acquired
the bank, but before HNC's own CFTRA reporting
procedures could be put in place at the bank. The
Board had also considered HNC's past record of
compliance with the law in its determination.
After consummation of the proposals discussed
above, the Office of the Comptroller of the Currency
("OCC") discovered additional CFTRA violations at a
recently acquired subsidiary of HNC. HNC has assured the Board that it has implemented extensive
CFTRA compliance procedures at all subsidiary
banks, particularly at the recently acquired bank,
sufficient to resolve these reporting violations. The
OCC has conducted an examination of CFTRA compliance at HNC's subsidiary banks, including the bank
with the CFTRA violations, and has found that HNC's
overall compliance with CFTRA is satisfactory. In
addition, the Board has consulted with the Department
of the Treasury regarding these violations, and the
Department has informed the Board that it does not
plan to take any civil or criminal enforcement action
with regard to these additional violations. On the basis
of these factors, and all other facts of record, the
Board concludes that the managerial resources of
HNC as well as Shawmut and its other proposed
subsidiaries are consistent with approval.
In considering the convenience and needs of the
communities to be served, the Board concludes that
HNC's and SC's records under the Community Reinvestment Act ("CRA") are consistent with approval,
especially in light of HNC's commitment to file regular
reports with the Reserve Bank regarding the CRA
activities of one of its subsidiary banks and its commitment to strengthen its record with regard to that
bank through an advertising program and certain other
measures.
Shawmut has also applied, pursuant to section
4(c)(8) of the Act, to acquire the nonbanking subsidiaries of HNC and SC. HNC operates subsidiaries that
originate and service residential real estate mortgages
and that directly compete with subsidiaries of SC.
Consummation of the proposal, however, would have
17. See e.g., Hartford National Corporation,
73 FEDERAL RESERVE BULLETIN 752 (1987); Hartford National Corporation,
73
FEDERAL RESERVE B U L L E T I N 7 2 0 ( 1 9 8 7 ) .
186 Federal Reserve Bulletin • March 1988
a de minimis effect on existing competition in each of
these markets, and there are numerous competitors for
these services. Accordingly, the Board concludes that
the proposal would not have any significant adverse
effect on existing or probable future competition in any
relevant geographic or product market. Furthermore,
there is no evidence,in the record to indicate that
approval of this proposal would result in undue concentration of resources, decreased or unfair competition, conflicts of interest, unsound banking practices,
or other adverse effects on the public interest. Accordingly, the Board has determined 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 applications to acquire the nonbanking
subsidiaries of HNC and SC.
Shawmut has requested the Board's authorization to
retain the insurance agency activities of SC's wholly
owned subsidiary, Shawmut Insurance Agency, Inc.,
which currently engages in the sale of property, casualty, credit life and credit accident and health insurance, and mortgage redemption insurance pursuant to
exemption D of the Garn-St Germain Depository
Institutions Act of 1982 (the "Garn Act"). 18 Exemption D of the Garn Act permits a bank holding company to engage in "any insurance activity which was
engaged in by the bank holding company or any of its
subsidiaries on May 1, 1982."
On April 2, 1982, SC obtained approval to acquire
Shawmut Insurance Agency, Inc., which was engaged
in the aforementioned activities on the grandfathered
date. Accordingly, Shawmut Insurance Agency, Inc.,
is entitled to continue to sell insurance under exemption D.
The Board has previously determined in Sovran
Financial Corporation, 73 F E D E R A L R E S E R V E B U L L E TIN 672 (1987), that an insurance agency which is
entitled to continue to sell insurance under exemption
D does not lose its grandfathered rights if the agency is
acquired by another bank holding company, provided
the agency maintains its separate corporate structure
and its insurance activities are not extended to other
subsidiaries within the acquiror's banking organization.
Shawmut has committed that Shawmut Insurance
Agency, Inc. will remain a separate subsidiary of Shawmut, and its insurance activities will not be conducted
by any of SC's other subsidiaries. Accordingly, the
Board has determined to permit Shawmut Insurance
Agency, Inc., to continue to engage in insurance activities following its acquisition by Shawmut.
Shawmut has also applied to acquire HNC's subsidiary Hartford Trust Company, New York, New York
("Company"), a company engaged in trust activities
pursuant to section 225.25(b)(3) of Regulation Y. Company does not accept demand deposits or make commercial loans. Because the deposits of Company are
insured by the Federal Deposit Insurance Corporation
("FDIC"), however, Company became a "bank"
pursuant to the enactment of the Competitive Equality
Banking Act of 1987, Pub. L. No. 100-86, 101 Stat.
553 (1987). Because Company is now a "bank" under
the Act, its acquisition by Shawmut would be subject
to the interstate restrictions found in the Douglas
Amendment. New York law does not permit a Massachusetts bank holding company, such as Shawmut, to
acquire a bank in New York. Thus, the Douglas
Amendment would bar Board approval of Shawmut's
acquisition of Company. To address this problem,
HNC has committed to discontinue the FDIC insurance for the deposits of Company, effective upon
consummation of this proposal. After Company terminates its insurance, Company will no longer be a
"bank" under the Act, and Shawmut may acquire
Company as a trust company pursuant to section
225.25(b)(3) of the Board's Regulation Y, as Shawmut
has applied to do.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. The acquisition of HNC
and SC 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
Boston, acting pursuant to delegated authority. The
determinations as to Applicant's nonbanking activities
are subject to all of the conditions contained 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 holding company or any of its subsidiaries as the Board finds
necessary to assure compliance with the provisions
and purposes of the Act and the Board's regulations
and orders issued thereunder, or to prevent evasion
thereof.
By order of the Board of Governors, effective
January 28, 1988.
Voting for this action: Chairman G r e e n s p a n and G o v e r n o r s
Johnson, Seger, Angell, Heller, and Kelley.
18. 12 U . S . C . § 1843(c)(8)(D). Such activities may be conducted in
the grandfathered company's home state, states adjacent thereto, or
any state where the company was authorized to operate an insurance
business before the grandfather date.
JAMES M C A F E E
Associate Secretary of the Board
Legal Developments
APPENDIX
Nonbanking
A
Subsidiaries
to be
Acquired
Connecticut National Mortgage Company, West Hartford, Connecticut, and thereby engage in making,
acquiring, selling or servicing loans or other extensions of credit, and acting as insurance agent or broker
with respect to insurance that is directly related to an
extension of credit; Connecticut National Trust Company of Florida, Stuart, Florida, and thereby engage in
performing fiduciary, agency and custody services for
customers in Florida and Connecticut; Hartford Trust
Company, New York, New York, and thereby engage
in performing fiduciary, agency and custody services
for customers in New York and Connecticut; One
Federal Asset Management, Inc., Boston, Massachusetts, and thereby engage in providing investment or
financial advice; Shawmut Brokerage Services, Inc.,
Boston, Massachusetts, and thereby engage in providing securities brokerage services; Shawmut Connecticut Corporation, Hartford, Connecticut, and thereby
engage in originating, packaging, selling and servicing
residential mortgages; Shawmut Credit Corporation,
Boston, Massachusetts, and thereby engage in origi-
ORDERS APPROVED
By Federal Reserve
UNDER BANK HOLDING
187
nating, packaging, selling, and servicing residential
mortgages; Shawmut Insurance Agency, Inc., Worcester, Massachusetts, and thereby engage in acting as
principal, agent or broker for insurance that is directly
related to an extension of credit by Applicant or any of
its subsidiaries and limited to assuring repayment of
the outstanding balance due on the extension of credit
in the event of death, disability or involuntary unemployment of the debtor; and acting as principal agent
or broker with respect to property and casualty that is
directly related to extensions of credit by Shawmut
Corporation or any of its subsidiaries; Shawmut Life
Insurance Company, Inc., Phoenix, Arizona, and
thereby engage in underwriting, as reinsurer, of credit
and life and credit accident and health insurance;
Shawmut Securities Clearance Corp., New York,
New York, and thereby engage in securities clearance
and related and incidental activities; and American
Agcredit Corporation, Fort Worth, Texas, and thereby
engage in making, servicing or acquiring loans or other
extensions of credit to agricultural enterprises or secured by agricultural commodities. The Board has
determined that these activities are closely related to
banking and permissible for bank holding companies.
12 C.F.R. §§ 225.23(b)(1), (3), (4), (8), and (15).
COMPANY
ACT
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
Abbott Bank Group, Inc.,
Alliance, Nebraska
„ ,, .
Bank(s)
Anchor Banshares, Inc.,
Merriam, Nebraska
Chadron Banshares, Inc.,
Chadron, Nebraska
Gordon State Banshares, Inc.,
Gordon, Nebraska
Mullen Banshares, Inc.,
Mullen, Nebraska
Thedford Banshares, Inc.,
Thedford, Nebraska
Valentine State Banshares, Inc.,
Valentine, Nebraska
Bridgeport Banshares, Inc.,
Bridgeport, Nebraska
Reserve
Bank
Kansas City
Effective
date
January 25, 1988
188
Federal Reserve Bulletin • March 1988
Section 3—Continued
.
Applicant
American Bancorporation,
Wheeling, West Virginia
Apple Creek Banc Corp.,
Apple Creek, Ohio
Barnett Banks, Inc.,
Jacksonville, Florida
Central Bancshares of the South,
Inc.,
Birmingham, Alabama
Chemical Financial Corporation,
Midland, Michigan
Comm. Bancorp, Inc.,
Forest City, Pennsylvania
ComSouth Bankshares, Inc.,
Columbia, South Carolina
Enterprise Bancorp.,
Houston, Texas
Exchange International
Corporation,
Chicago, Illinois
Fentura Bancorp, Inc.,
Fenton, Michigan
First Community Bancshares,
Inc.,
Rome, Georgia
First Jones Bancorporation, Inc.,
Jones, Oklahoma
First National Cincinnati
Corporation,
Cincinnati, Ohio
First Nokomis Bancorp, Inc.,
Nokomis, Illinois
First Security Bancorp, Inc.,
Baltimore, Maryland
First Union Corporation,
Charlotte, North Carolina
Franklin Financial Services
Corporation,
Chambersburg, Pennsylvania
Fulton Financial Corporation,
Lancaster, Pennsylvania
Inland Bancorp, Inc.,
Oak Brook, Illinois
t. w x
Bank(s)
Wheeling National Bank,
Wheeling, West Virginia
Apple Creek Banking Company,
Apple Creek, Ohio
First Fulton Bancshares, Inc.,
Palmetto, Georgia
Weslayan Bancshares, Inc.,
Houston, Texas
Reserve
Bank
Effective
date
Cleveland
January 11, 1988
Cleveland
January 27, 1988
Atlanta
January 11, 1988
Atlanta
January 15, 1988
First National Bank & Trust,
Big Rapids, Michigan
The First National Bank of
Nicholson,
Nicholson, Pennsylvania
Commercial Bank of the South,
N.A.,
Columbia, South Carolina
Enterprise Bank—West, N.A.,
Houston, Texas
River Oaks Bancorp, Inc.,
Calumet City, Illinois
Chicago
January 26, 1988
Philadelphia
January 19, 1988
Richmond
January 26, 1988
Dallas
January 26, 1988
Chicago
January 13, 1988
State Savings Bank of Fenton,
Fenton, Michigan
First Rome Bank,
Rome, Georgia
Chicago
January 20, 1988
Atlanta
January 14, 1988
First State Bank,
Jones, Oklahoma
Peoples Liberty Bancorporation,
Covington, Kentucky
Kansas City
January 28, 1988
Cleveland
December 31, 1987
First National Bank of Nokomis,
Nokomis, Illinois
Federal Savings Bank of Maryland,
Baltimore, Maryland
Florida Commercial Banks, Inc.,
Miami, Florida
The Mont Alto State Bank,
Mont Alto, Pennsylvania
St. Louis
January 15, 1988
Richmond
January 13, 1988
Richmond
January 7, 1988
Philadelphia
January 15, 1988
Lafayette Trust Bank,
Easton, Pennsylvania
American National Bank,
Downers Grove, Illinois
Philadelphia
January 14, 1988
Chicago
January 13, 1988
Legal Developments
189
Section 3—Continued
A
Applicant
International Brotherhood of
Boilermakers, Iron Ship
Builders, Blacksmiths, Forgers
and Helpers,
Kansas City, Kansas
Landmark Bancshares
Corporation,
St. Louis, Missouri
Landmark Acquisition
Corporation,
St. Louis, Missouri
Landmark Bancshares
Corporation,
St. Louis, Missouri
Landmark Acquisition
Corporation II,
St. Louis, Missouri
Lincoln County Bancorp, Inc.,
Troy, Missouri
r» i / x
Bank(s)
Reserve
Bank
Brotherhood Bank and Trust Co.
Kansas City, Kansas
Kansas City
January 11, 1988
Taney County Bancorporation,
Kansas City, Missouri
St. Louis
December 31, 1987
Eagle Bancorporation, Inc.,
Highland, Illinois
St. Louis
December 31, 1987
Commerce Bank of Louisiana,
St. Louis
N.A.,
Louisiana, Missouri
Chrisman Bancshares, Inc.,
Long view Capital Corporation,
Chicago
Chrisman, Illinois
Newman, Illinois
MetroBank,
Chicago
MetroBanCorp,
Indianapolis, Indiana
Indianapolis, Indiana
Metropolitan Bank, National
Richmond
Metropolitan Bancshares, Inc.,
Association,
Washington, D.C.
Washington, D.C.
Chicago
Midlothian State Bank Employees Midlothian State Bank,
Midlothian, Illinois
Stock Ownership Plan,
Midlothian, Illinois
Charter Bancshares, Inc.,
NCNB Corporation,
Richmond
Houston, Texas
Charlotte, North Carolina
Community State Bank of
Philadelphia
Orbisonia Community Bancorp,
Orbisonia,
Inc.,
Orbisonia, Pennsylvania
Orbisonia, Pennsylvania
Peoples Savings Bank,
Boston
Peoples Bancorp of Worcester,
Worcester, Massachusetts
Inc.,
Worcester, Massachusetts
Portsmouth Bank Shares, Inc.,
Portsmouth Savings Bank,
Boston
Portsmouth, New Hampshire
Portsmouth, New Hampshire
First Coastal Banks, Inc.,
Portsmouth, New Hampshire
American National Bank of Duncan, Kansas City
Security Corporation,
Duncan, Oklahoma
Duncan, Oklahoma
First National Bancshares, Inc.,
SouthTrust Corporation,
Atlanta
Jacksonville, Florida
Birmingham, Alabama
Effective
^
January 8, 1988
January 15, 1988
December 30, 1987
January 28, 1988
December 30, 1987
January 20, 1988
January 4, 1988
January 28, 1988
January 11, 1988
January 12, 1988
January 12, 1988
190 Federal Reserve Bulletin • March 1988
Section 3—Continued
Applicant
Thomas Drilling Company,
Duncan, Oklahoma
Trustcorp, Inc.,
Toledo, Ohio
St. Joseph Bancorporation, Inc.
South Bend, Indiana
Valley Bank Shares, Inc.,
Schuyler, Nebraska
Wes-Tenn Bancorp, Inc.,
Covington, Tennessee
Whitaker Bancorp, Inc.,
Lexington, Kentucky
Will Bancorp, Inc.,
Williamsville, Illinois
Bank(s)
Reserve
Bank
Kansas City
Exchange Financial Corporation,
Ardmore, Oklahoma
Charter Bancshares, Inc.,
Oklahoma City, Oklahoma
American National Bank of Duncan,
Duncan, Oklahoma
Cleveland
Citizens Bank,
Indianapolis, Indiana
Brainard Agency Company,
Schuyler, Nebraska
Platte Valley National Company,
Schuyler, Nebraska
Decatur Agency Company,
Schuyler, Nebraska
Emerson First National Company,
Schuyler, Nebraska
First National Stanton Corporation,
Schuyler, Nebraska
Arcadia Agency Company,
Schuyler, Nebraska
Tipton County Bank,
Covington, Tennessee
State National Bancorp of
Frankfort, Inc.,
Frankfort, Kentucky
Williamsville State Bank,
Williamsville, Illinois
Effective
date
January 12, 1988
January 11, 1988
Kansas City
December 29, 1987
St. Louis
December 31, 1987
Cleveland
January 8, 1988
Chicago
January 12, 1988
Section 4
Applicant
Comerica Incorporated,
Detroit, Michigan
First Eastern Corporation,
Wilkes-Barre, Pennsylvania
Home State Bancorp, Inc.,
Crystal Lake, Illinois
La Jolla Bancorp,
La Jolla, California
Mason State Company,
Mason City, Nebraska
Nonbanking Company/Activity
engage de novo in the issuance and
sale of variably denominated
payment instruments with a face
value of less than $10,000
Dolphin and Bradbury, Inc.,
Philadelphia, Pennsylvania
continue to engage in the extension
of credit
H. D. McNee Realty Advisors, Inc.
San Diego, California
continue to engage in general
insurance activities in a town of
less than 5,000 persons
Reserve
Bank
Effective
date
Chicago
January 4, 1988
Philadelphia
December 31, 1987
Chicago
January 14, 1988
San Francisco December 30, 1987
Kansas City
January 12, 1988
Legal Developments
191
Section 4—Continued
Applicant
MCorp,
Dallas, Texas
MCorp Financial, Inc.,
Wilmington, Delaware
Menomonie Financial Services,
Inc.,
Menomonie, Wisconsin
Peoples Bancorporation,
Rocky Mount, North Carolina
Thomas Drilling Company,
Duncan, Oklahoma
Valley Bank Shares, Inc.,
Schuyler, Nebraska
Nonbanking Company/Activity
^Bank^
Management Information Resources, Dallas
Inc.,
Lubbock, Texas
engage de novo in data processing
and management consulting
activities
First Finance Company of East
Point, Inc.,
Atlanta, Georgia
Downtown Finance Company,
Atlanta, Georgia
Apex Investment,
Thomasville, Georgia
Sun States Finance Company,
Athens, Georgia
Sun States Finance Company of
Orlando,
Orlando, Florida
engage in making, acquiring, or
servicing loans or other extensions
of credit
First National Insurance Agency,
Stanton, Nebraska
the general insurance operations of
the following:
Brainard Agency Company,
Schuyler, Nebraska
Decatur Agency Company,
Schuyler, Nebraska
Arcadia Agency Company,
Schuyler, Nebraska
Effective
date
January 27, 1988
Minneapolis
January 22, 1988
Richmond
December 31, 1987
Kansas City
January 12, 1988
Kansas City
December 29, 1987
Sections 3 and 4
Applicant
Royal Windsor Holding Corp.,
New Orleans, Louisiana
Bank(s)/Nonbanking
Company
Jefferson Guaranty Bank,
Metairie, Louisiana
Jefferson Financial Services, Inc.,
Metairie, Louisiana
Reserve
Bank
Atlanta
Effective
date
December 31, 1987
192 Federal Reserve Bulletin • March 1988
ORDERS APPROVED
By Federal Reserve
UNDER BANK MERGER
Banks
Bank(s)
Applicant
The ACB Bank,
Apple Creek, Ohio
Chemical Bank and Trust
Company,
Midland, Michigan
First Nebraska Bank,
Valley, Nebraska
First of America Bank—Straits
Area,
Cheboygan, Michigan
The Toledo Trust Company,
Toledo, Ohio
PENDING
ACT
CASES INVOLVING
Apple Creek Banking Company,
Apple Creek, Ohio
Auburn Michigan Branch of
Chemical Bank Bay Area,
Bay City, Michigan
First Nebraska Bank,
Brainard, Nebraska
First Nebraska Bank, N.A.,
Columbus, Nebraska
First Nebraska Bank,
Decatur, Nebraska
First Nebraska Bank, N.A.,
Emerson, Nebraska
First Nebraska Bank, N.A.,
Stanton, Nebraska
First of America Bank—Sault Ste.
Marie, National Association,
Saulte Ste. Marie, Michigan
Trustcorp Company, National
Association,
Columbus, Ohio
Trustcorp Company, Dayton,
Dayton, Ohio
THE BOARD
OF
Reserve
Bank
Cleveland
January 27, 1988
Chicago
January 15, 1988
Kansas City
December 29, 1987
Chicago
January 20, 1988
Cleveland
January 26, 1988
GOVERNORS
This list of pending cases does not include suits against the Federal Reserve
of Governors is not named a party.
Securities Industry Association v. Board of Governors, No. 87-4161 (2d Cir., filed Dec. 15, 1987).
Independent Insurance Agents of America, Inc. v.
Board of Governors, No. 87-1686 (D.C. Cir., filed
Nov. 19, 1987).
National Association of Casualty and Surety Agents,
et al., v. Board of Governors, Nos. 87-1644,
87-1801, 88-1001 (D.C. Cir., filed Nov. 4, Dec. 21,
1987, Jan. 4, 1988).
Teichgraeber v. Board of Governors, No. 87-2505-0
(D. Kan., filed Oct. 16, 1987).
Securities Industry Association v. Board of Governors, No. 87-4135 (2d Cir., filed Oct. 8, 1987).
Independent Insurance Agents of America, Inc. v.
Board of Governors, No. 87-4118 (2d Cir., filedSept. 17, 1987).
Effective
date
Banks in which the Board
Citicorp v. Board of Governors, No. 87-1475 (D.C.
Cir., filed Sept. 9, 1987).
Securities Industry Association v. Board of Governors, No. 87-4115 (2d Cir., filed Sept. 9, 1987).
Barrett v. Volcker, No. 87-2280 (D.D.C., filed Aug.
17, 1987).
Northeast Bancorp v. Board of Governors,
87-1365 (D.C. Cir., filed July 31, 1987).
No.
National Association of Casualty & Insurance Agents
v. Board of Governors, Nos. 87-1354, 87-1355 (D.C.
Cir., filed July 29, 1987).
The Chase Manhattan Corporation v. Board of Governors, No. 87-1333 (D.C. Cir., filed July 20, 1987).
Legal Developments
Securities Industry Association v. Board of Gover
nors, Nos. 87-4091, 87-4093, 87-4095 (2d Cir., filed
July 1 and July 15, 1987).
Lewis v. Board of Governors, Nos. 87-3455, 87-3545
(11th Cir., filed June 25, Aug. 3, 1987).
Securities Industry Association v. Board of Governors, et al. No. 87-4041 and consolidated cases (2d
Cir., filed May 1, 1987).
Securities Industry Association v. Board of Governors, et al., No. 87-1169 (D.C. Cir., filed April 17,
1987).
Independent Insurance Agents of America, et al. v.
Board of Governors, Nos. 86-1572, 1573, 1576
(D.C. Cir., filed Oct. 24, 1986).
193
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).
CBC, Inc. v. Board of Governors, No. 86-1001 (10th
Cir., filed Jan. 2, 1986).
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).
Brown v. United States Congress, et al., No.
84-2887-6(IG) (S.D. Cal., filed Dec. 7, 1984).
Melcher v. Federal Open Market Committee, No.
86-5692 (D.C. Cir., filed April 30, 1984).
A1
Financial and Business Statistics
CONTENTS
Domestic
MONEY
WEEKLY REPORTING
Financial
Statistics
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
A6 Selected borrowings in immediately available
funds—Large member banks
A19
A20
A21
A22
COMMERCIAL
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
INSTRUMENTS
A7 Federal Reserve Bank interest rates
A8 Reserve requirements of depository institutions
A9 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
A36 Nonfinancial corporations—Assets and
liabilities
46
Federal Reserve Bulletin • March 1988
A36 Total nonfarm business expenditures on new
plant and equipment
A37 Domestic finance companies—Assets and
liabilities and business credit
REAL
ESTATE
A38 Mortgage markets
A39 Mortgage debt outstanding
CONSUMER
INSTALLMENT
CREDIT
A40 Total outstanding and net change
A41 Terms
FLOW OF
FUNDS
A54 U.S. reserve assets
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
REPORTED
BY BANKS
IN THE UNITED
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
A42 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets
REPORTED BY NONBANKING
ENTERPRISES IN THE UNITED
Domestic
A63 Liabilities to unaffiliated foreigners
A64 Claims on unaffiliated foreigners
SELECTED
Nonfinancial
Statistics
MEASURES
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
SECURITIES
HOLDINGS
AND
BUSINESS
STATES
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
Statistics
STATISTICS
A53 U.S. international transactions—Summary
A54 U.S. foreign trade
STATES
A69 Guide to Tabular
Presentation,
Statistical Releases, and Special
Tables
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)'
Item
1
2
3
4
Reserves of depository
Total
Required
Nonborrowed
Monetary base 3
5
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt
Nontransaction
10 In M2 y
11 In M3 only 6
1987
Ql
Q2
Q3
Q4
Aug.
Sept.
Oct.
Nov/
Dec.
16.4
16.5
18.5
11.3
8.0
8.4
5.4
6.8
-1.6
-.5
-.4
4.7
1.4
.3
1.2
8.0
5.7
.1
6.3
6.5
-1.0
4.0
-7.2
5.0
13.9
7.1
14.1
11.9
-10.4
-6.4
-4.0
8.1
-11.4
-13.8
-14.7
2.9
13.1
6.4
6.5
6.2
10.5''
6.4
2.3
4.3
3.3'
8.7'
-.1'
3.0'
4.8'
4.1'
8.1'
3.7
4.3
5.7
n.a.
9.2
5.5'
6.2'
6.9'
7.4'
7.7
.3
5.5'
5.5'
8.1'
9.0 r
15.2'
7.0'
7.8'
10.1'
9.7'
-6.5
-.6
4.3
4.0
10.6
-5.7
1.9
1.5
n.a.
n.a.
4.1'
10.8'
1.5
23.0
4.5
.2
institutions
components
Time and savings deposits
Commercial banks
Savings
Small-denomination time®
Large-denomination time •
Thrift institutions
15
Savings
16 Small-denomination time
17 Large-denomination time 9
12
13
14
Debt components*
18 Federal
19 Nonfederal
.
20 Total loans and securities at commercial banks
4.1
6.6
.9
12.2
4.1'
11.8
4.6
11.1
6.6'
9.3
7.3'
5.7'
37.3
-4.9
9.7
24.1
-4.6
18.3
7.8
8.0
4.1
-.5
15.4
9.2
9.5
6.6
.0
.0
6.2
-.4
-3.4
18.6
13.0
-3.4
25.1
21.6
2.0
12.3
.7
27.3
-4.2
-9.5
25.9
1.0
-8.4
7.1
10.1'
10.7
-8.8
16.2
24.3
8.5
12.1
13.5
-2.5
9.8'
17.2
-9.9
13.1'
29.4
-22.1
25.2
27.2
-8.2
21.9
24.3
12.2
io.(y
10.1
8.8
8.7'
7.0
5.9
8.8'
5.7
7.4
9.7
6.5'
8.8
7.4
10.8
6.5
9.8'
9.7
3.9
11.5'
10.2'
12.6
10.0
-1.1
n.a.
n.a.
-.3
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 F e d e r i 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.
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
DomesticNonfinancialStatistics • March 1988
1.11
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
1987
1987
Oct.
Nov.
Dec.
Nov. 18
Nov. 25
Dec. 2
Dec. 9
Dec. 16
Dec. 23
Dec. 30
241,841
240,088
245,975
241,638
239,081
243,387
244,787
245,050
244,657
247,325
214,787
210,822
3,965
8,747
7,601
1,146
0
959
751
16,597
11,084
5,018
18,028
214,695
213,706
989
7,956
7,567
389
0
610
866
15,961
11,084
5,018
18,102
219,761
218,734
1,027
8,062
7,559
503
0
836
1,545
15,771
11,080
5,018
18,153
215,319
214,381
938
8,090
7,567
523
0
605
1,595
16,029
11,085
5,018
18,101
215,088
215,088
0
7,567
7,567
0
0
681
686
15,059
11,083
5,018
18,115
217,842
215,207
2,635
8,901
7,567
1,334
0
684
674
15,287
11,083
5,018
18,128
219,734
219,312
422
7,623
7,567
56
0
754
913
15,764
11,082
5,018
18,138
219,006
219,006
0
7,558
7,558
0
0
875
1,942
15,668
11,081
5,018
18,148
219,179
219,179
0
7,556
7,556
0
0
586
1,123
16,212
11,080
5,018
18,158
220,447
218,704
1,743
8,529
7,555
974
0
755
1,580
16,013
11,079
5,018
18,168
218,734
470
223,078
471
227,366
455
223,539
474
223,662
472
225,013
465
225,718
455
226,447
454
227,672
454
229,746
454
8,828
259
3.755
299
4,209
233
3,836
261
3.325
279
3,403
365
3,792
223
4,817
233
4,219
240
3,719
192
2,029
402
2,063
374
2,168
366
2,017
346
1,845
336
2,290
484
1,914
328
2,128
321
1,960
326
2,269
377
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit
2
U.S. government securities'
3
Bought outright
4
Held under repurchase agreements....
Federal agency obligations
5
Bought outright
6
7
Held under repurchase agreements
8
Acceptances
9
Loans
10 Float
11 Other Federal Reserve assets
12 Gold stock2
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 Banks3
7,236
7,418
7,443
7.336
7,192
7,605
7,627
7,306
7,270
7,468
38,014
36,834
37,986
38,033
36,187
37,991
38,969
37,591
36,772
37,366
End-of-month figures
Wednesday figures
1987
1987
Oct.
Nov.
Dec.
Nov. 18
Nov. 25
Dec. 2
Dec. 9
Dec. 16
Dec. 23
Dec. 30
23 Reserve Bank credit
246,896
245,472
251,883
237,916
239,681
250,180
244,741
245,729
244,963
250,948
24 U.S. government securities'
25
Bought outright
26
Held under repurchase agreements....
27 Federal agency obligations
28
Bought outright
29
Held under repurchase agreements....
30 Acceptances
31 Loans
32 Float
33 Other Federal Reserve assets
34 Gold stock"
35 Special drawing rights certificate account..
217,614
209,319
8.295
10,483
7,567
2,916
0
587
609
17,603
11,085
5,018
218,960
213,563
5,397
9,844
7,567
2,277
0
790
428
15,450
11,082
5,018
222,551
218,906
3,645
8,869
7,553
1,316
0
3,815
811
15,837
11,078
5,018
213,000
212,810
190
7,947
7,567
380
0
662
1,525
14,782
11,083
5,018
215,532
215,532
0
7,567
7,567
0
0
602
975
15,005
11,083
5,018
221,651
214,479
7,172
11,643
7,567
4,076
0
630
351
15,905
11,083
5,018
219,158
219,158
0
7,567
7,567
0
0
817
1,276
15,923
11,082
5,018
216,715
216,715
0
7,556
7,556
0
0
836
4,560
16,062
11,081
5,018
219,049
219,049
0
7,556
7,556
0
0
492
1,951
15,915
11,079
5,018
222,383
218,549
3,834
9,349
7,553
1,796
0
951
2,011
16,254
11,078
5,018
18,058
18,127
18,177
18,113
18,127
18,137
18,147
18,157
18,167
18,177
219,842
467
225,090
465
230,205
454
223,545
473
224,677
466
225,542
464
226,316
454
226,880
454
229,224
454
230,400
454
8,898
236
3,594
352
5,313
244
2,921
194
2,767
261
4,850
502
4,581
210
9,036
270
2,992
215
4,773
207
1,733
477
1.717
450
1,687
1,027
1,735
310
1,718
482
1,717
352
1,706
344
1,699
359
1,697
293
1,699
364
SUPPLYING RESERVE FUNDS
36 Treasury currency outstanding
ABSORBING RESERVE FUNDS
37 Currency in circulation^
38 Treasury cash holdings2
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 Banks1
7,950
7,968
7,129
7,039
7,068
7,877
7,122
7,095
7,0%
7,453
41,454
40,064
40,097
35,914
36,470
43,114
38,255
34,192
37,256
39,871
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. Revised for periods between October 1986 and April 1987. At times during
this interval, outstanding gold certificates were inadvertently in excess of the gold
stock. Revised data not included in this table are available from the Division of
Research and Statistics, Banking Section.
3. 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
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks 1
Total vault cash
Vault3
Surplus4
Total reserves
Required reserves
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks
1984
1985
1986
Dec.
Dec.
Dec.
May
June
July
Aug.
Sept.
Oct.
Nov.
21,738
22,313
18,958
3,355
40,696
39,843
853
3,186
113
2,604
27,620
22,953
20,522
2,431
48,142
47,085
1,058
1,318
56
499
37,360
24,071
22,199
1,872
59,560
58,191
1,369
827
38
303
36,466
23,693
21,873
1,820
58,339
57,260
1,079
1,035
196
288
36,309
24,380
22,475
1,905
58,784
57,594
1,190
776
259
273
36,110
24,631
22,728
1,903
58,838
58,078
761
672
283
194
35,616
24,649
22,745
1,904
58,361
57,329
1,032
647
279
132
36,685
24,860
23,128
1,732
59,813
59,020
793
940
231
409
37,249
25,596
23,857
1,739
61,106
59,977
1,128
948
189
449
37,249
25,596
23,857
1,739
61,106
59,977
1,129
943
189
449
1987
Biweekly averages of daily figures for weeks ending
1987
11
12
13
14
15
16
17
18
19
20
Reserve balances with Reserve Banks' . . .
Total vault cash
Vault3
Surplus 4 ..
Total reserves
Required reserves
Excess reserve balances at Reserve Banks'
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks .
Extended credit at Reserve Banks
Aug. 26
Sept. 9
Sept. 23
Oct. 7
Oct. 21
35,173
25,074
23.115
1,959
58,288
57.116
1,173
719
286
128
36,294
24,288
22,446
1,842
58,740
57,546
1,194
647
241
173
36,866
25,146
23,475
1,672
60,340
59,825
515
1,001
226
531
36,826
25,026
23,313
1,713
60,139
59,306
833
1,195
230
469
36,672
26,183
24,410
1,773
61,082
60,115
967
1,007
183
482
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 useu
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
38,353
25,174
23,464
1,710
61,817
60,256
1,561
677
169
390
Nov. 18
Dec. 2
Dec. 16
Dec. 30
37,525
25,188
23,622
1,566
61,147
60,665
492
561
125
334
37,069
25,802
23,999
1,803
61,068r
59,855
1,213
683
114
465
38,272
25,372
23,824
1,549
62,095
60,890
1,206
815
83
653
37,055
26,960
25,105
1,855
62,160
61,354
806
671
102
316
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.
A6
1.13
DomesticNonfinancialStatistics • March 1988
SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE F U N D S
Large Member Banks 1
Averages of daily figures, in millions of dollars
1987 week ending Monday
Maturity and source
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
July 20
July 27
69,704
8,626
68,682
8,829
31,478
7,384
Aug. 3
Aug. 10
Aug. 17
Aug. 24
Aug. 31
Sept. 7
68,983
9,624
72,747
9,252
71,952
8,970
69,808
9,098
70,480
9,442
75,786
9,171
31,316
7,122
32,783
7,206
32,923
6,753
32,524
6,517
30,368
6,387
30,994
6,622
29,160
6,160
Repurchase agreements on U.S. 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
11,515
10,797
13,115
11,725
13,711
12,209
13,744
12,363
12,715
12,546
12,756
13,455
13,002
13,619
13,332
13,880
26,375
8,373
26,482
8,363
27,082
8,123
27,417
8,165
27,613
8,550
27,496
9,188
27,128
9,657
26,288
9,120
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
31,101
13,109
28,293
13,347
29,247
13,690
30,410
12,886
29,547
11,853
28,622
13,676
29,053
14,024
30,568
14,062
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.
Policy Instruments
1.14
A7
FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Extended Credit2
Adjustment Credit
and
Seasonal Credit1
Federal Reserve
Bank
After 30 days of Borrowing3
First 30 days of Borrowing
On
1/27/88
Effective
Date
Previous
Rate
On
1/27/88
Effective
Date
Previous
Rate
On
1/27/88
Effective
Date
Previous
Rate
Effective Date
6
9/9/87
9/4/87
9/4/87
9/4/87
9/5/87
9/4/87
5Vi
6
9/9/87
9/4/87
9/4/87
9/4/87
9/5/87
9/4/87
5W
7.45
1/14/88
1/14/88
1/14/88
1/14/88
1/14/88
1/14/88
7.70
12/31/87
12/31/87
12/31/87
12/31/87
12/31/87
12/31/87
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . .
6
9/4/87
9/9/87
9/8/87
9/4/87
9/11/87
9/9/87
9/4/87
9/9/87
9/8/87
9/4/87
9/11/87
9/9/87
6
5 Vi
5Vi
7.45
1/14/88
1/14/88
1/14/88
1/14/88
1/14/88
1/14/88
12/31/87
12/31/87
12/31/87
12/31/87
12/31/87
12/31/87
7.70
Range of rates for adjustment credit in recent years 4
Effective date
In effect Dec. 31, 1977.
1978—Ian. 9
20
May 11
12
July 3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
1979—July 20
Aug. 17
20
Sept. 19
21
Oct.
8
10
1980—Feb. 15
19
May 29
30
June 13
16
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
6
6-6W
6W
evi-i
6
6Vz
6W
1
1
7W
7V4
m
8
8 Vi
m
9Vi
m
7
7-7V4
7V4
73/4
8
8-8W
8W
8W-9W
9 Vi
10
10-10W
10 W
10W-11
11
11-12
12
12-13
13
12-13
12
11-12
11
10
LOW
10W
11
11
12
12
13
13
13
12
11
11
Effective
1980-—July 78
79
Sept. 76
Nov. 17
Dec. 5
1981-—May
—May
Nov.
Dec.
5
8
7
6 .
4 .
1982--July
-July 70
73
Aug. 7
3 .
16
77
30 .
Oct. I? .
13 .
Nov. 77
76
Dec. 14
15
17
1. Adjustment credit is available on a short-term basis to help depository
institutions meet temporary needs for funds that cannot be met through reasonable alternative sources. After May 19,1986, the highest rate established for loans
to depository institutions may be charged on adjustment credit loans of unusual
size that result from a major operating problem at the borrower's facility.
Seasonal credit is available to help smaller depository institutions meet regular,
seasonal needs for funds that cannot be met through special industry lenders and
that arise from a combination of expected patterns of movement in their deposits
and loans. 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
Vi percent higher.
2. Extended credit is available to depository institutions, where similar assistance is not reasonably available from other sources, when exceptional circumstances or practices involve only a particular institution or when an institution is
experiencing difficulties adjusting to changing market conditions over a longer
period of time.
3. For extended-credit loans outstanding more than 30 days, a flexible rate
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
Effective date
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
10-11
10
11
12
12-13
10
10
11
12
13
1984—Apr.
9
13
Nov. 21
26
Dec. 24
8W-9
9
8 Vi-9
m
8
9
9
8W
m
8
13-14
14
13-14
13
12
14
14
13
13
12
1985—May 20
24
7W-8
IVi
7 Vi
IVi
1986—Mar.
1-lVi
7
6W-7
6
5W-6
SV2
7
7
6W
6
5W
5 Vi
51/2-6
6
6
6
6
6
11 VI—12
IM
11-1 \Vz
11
10 Vi
IO-IOW
10
9W-10
9 Vl
9-9 Vi
9
m-9
m-9
8W
NW
1M
11
11
10W
10
10
9V2
9W
9
9
9
8W
8W
7
10
Apr. 21
July 11
Aug. 12
22
1987—Sept.
4
11
In effect January 27, 1988
somewhat above rates on market sources of funds ordinarily will be charged, but
in no case will the rate charged be less than the basic discount rate plus 50 basis
points. The flexible rate is re-established on the first business day of each
two-week reserve maintenance period. At the discretion of the Federal Reserve
Bank, the time period for which the basic discount rate is applied may be
shortened.
4. For 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.
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, 1981. As of Oct. 1, 1981 the
formula for applying the surcharge was changed from a calendar quarter to a
moving 13-week period. The surcharge was eliminated on Nov. 17, 1981.
A8
DomesticNonfinancialStatistics • March 1988
1.15
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 1
Percent of deposits
Type of deposit, and
deposit interval
Depository institution requirements
after implementation of the
Monetary Control Act
Percent of
deposits
Net transaction accounts •
$0 million-$40.5 million
More than $40.5 million . . .
Effective date
12/30/86
12/30/86
Nonpersonal time deposits5
By original maturity
Less than 1 Vz years
1 Vi years or more
3
0
10/6/86
10/6/83
Eurocurrency liabilities
All types
3
11/13/80
1. Reserve requirements in effect on Dec. 31, 1987. 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. For previous reserve
requirements, see earlier editions of the Annual Report and of the FEDERAL
RESERVE BULLETIN. Under provisions of the Monetary Control Act, depository
institutions include commercial banks, mutual savings banks, savings and loan
associations, credit unions, agencies and branches of foreign banks, and Edge
corporations.
2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law
97-320) requires 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 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. On Dec. 15, 1987, the exemption was raised from $2.9
million to $3.2 million. In determining the reserve requirements of depository
institutions, the exemption shall apply in the following order: (1) net NOW
accounts (NOW accounts less allowable deductions); (2) net other transaction
accounts; and (3) 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.
3. 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 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).
4. 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. 29,
1987, the amount was increased from $36.7 million to $40.5 million.
5. 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.
Policy Instruments
1.17
A9
FEDERAL RESERVE OPEN MARKET TRANSACTIONS 1
Millions of dollars
1987
Type of transaction
1984
1985
1986
May
June
July
Aug.
Sept.
Oct.
Nov.
U . S . TREASURY SECURITIES
Outright transactions (excluding matched
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
20,036
8,557
0
7,700
22,214
4,118
0
3,500
22,602
2,502
0
1,000
1,697
0
0
0
575
22
0
0
575
912
0
4,572
499
0
0
0
4,528
0
0
3,657
1,095
300
0
0
3,388
0
0
0
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
1,126
0
16,354
-20,840
0
1,349
0
19,763
-17,717
0
190
0
18,673
-20,179
0
0
0
4,063
-1,336
0
535
0
1,715
-1,812
0
0
0
1,437
-613
0
0
0
2,723
-1,787
0
443
300
1,500
-917
*
300
0
816
-1,178
0
670
0
2,247
-3,728
70
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,638
0
-13,709
16,039
2,185
0
-17,459
13,853
893
0
-17,058
16,984
0
0
-1,804
1,111
1,394
0
-1,715
1,812
0
200
-1,397
613
5
0
-2,122
1,612
2,551
0
-1,500
917
0
0
-761
1,178
50
0
-1,900
3,278
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
536
300
-2,371
2,750
458
100
-1,857
2,184
236
0
-1,620
2,050
0
0
-2,259
150
312
0
0
0
0
0
-40
0
0
0
-601
100
619
0
0
0
0
0
-55
0
0
0
-347
300
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
441
0
-275
2,052
293
0
-447
1,679
158
0
0
1,150
0
0
0
75
251
0
0
0
0
0
0
0
0
0
0
75
493
0
0
0
0
0
0
0
0
0
0
150
23,776
8,857
7,700
26,499
4,218
3,500
24,078
2,502
1,000
1,697
0
0
3,066
22
0
575
1,112
4,572
504
0
0
8,633
300
3,657
1,395
300
0
4,108
0
70
808,986
810,432
866,175
865,968
927,997
927,247
91,642
92,137
87,228
87,128
80,304
80,037
60,731
62,594
61,321
61,347
77,497
73,779
85,288
85,494
127,933
127,690
134,253
132,351
170,431
160,268
59,340
73,111
24,167
22,108
3,298
2,058
9,013
12,311
34,080
34,080
65,675
57,380
15,853
18,751
8,908
20,477
29,989
-11,580
5,002
-4,136
-931
4,702
5,673
1,346
0
0
256
0
0
162
0
0
398
0
0
*
0
0
0
0
0
59
0
0
0
0
0
0
0
0
56
0
0
1
11,509
11,328
22,183
20,877
31,142
30,522
16,071
19,428
3,907
2,910
929
996
2,369
3,298
7,174
7,174
18,523
15,607
6,786
7,425
-76
1,144
222
-3,357
997
-126
-929
0
2,860
-640
-418
0
0
0
0
0
0
0
0
0
8,414
21,621
30,211
-14,936
5,999
-4,262
-1,861
4,702
8,533
706
All maturities
22 Gross purchases
23 Gross sales
24 Redemptions
Matched transactions
25 Gross sales
26 Gross purchases
2
Repurchase agreements
27 Gross purchases
28 Gross sales
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
Outright transactions
30 Gross purchases
31 Gross sales
32 Redemptions
Repurchase agreements2
33 Gross purchases
34 Gross sales
35 Net change in federal agency obligations
BANKERS ACCEPTANCES
36 Repurchase agreements, net
37 Total net change in System Open Market
Account
1. 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.
2. In July 1984 the Open Market Trading Desk discontinued accepting bankers
acceptances in repurchase agreements,
A10
1.18
DomesticNonfinancialStatistics • March 1988
FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements 1
Millions of dollars
Account
Dec. 2
Dec. 9
Wednesday
End of month
1987
1987
Dec. 16
Dec. 23
Dec. 30
Oct.
Nov.
Dec.
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements . . .
Federal agency obligations
7 Bought outright
8 Held under repurchase agreements
U.S. Treasury securities
Bought outright
9
Bills
10
Notes
11
Bonds
12
Total bought outright2
13 Held under repurchase agreements
14 Total U.S. Treasury securities
15 Total loans and securities
16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies 3
19 All other
20 Total assets
11,083
5,018
435
11,082
5,018
433
11,081
5,018
395
11,079
5,018
434
11,078
5,018
413
11,085
5,018
461
11,082
5,018
446
11,078
5,018
408
630
0
0
817
0
0
836
0
0
492
0
0
951
0
0
587
0
0
790
0
0
3,815
0
0
7,567
4,076
7,567
0
7,556
0
7,556
0
7,553
1,796
7,567
2,916
7,567
2,277
7,553
1,316
107,373
79,345
27,761
214,479
7,172
221,651
107,943
82,973
28,242
219,158
0
219,158
105,500
82,973
28,242
216,715
0
216,715
107,834
82,973
28,242
219,049
0
219,049
107,334
82,973
28,242
218,549
3,834
222,383
102,863
78,844
27,612
209,319
8,295
217,614
106,457
79,345
27,761
213,563
5,397
218,960
107,691
82,973
28,242
218,906
3,645
222,551
233,924
227,542
225,107
227,097
232,683
228,684
229,594
235,235
6,313
698
6,871
699
12,261
699
8,839
698
7,973
704
7,197
698
4,901
698
7,990
705
8,021
7,186
7,974
7,250
7,896
7,467
7,884
7,333
7,757
7,793
8,268
8,637
8,064
6,688
7,773
7,359
272,678
266,869
269,924
268,382
273,419
270,048
266,491
275,566
208,304
209,056
209,572
211,945
213,090
202,712
207,873
212,890
44,831
4,850
502
352
39,961
4,581
210
344
35,891
9,036
270
359
38,953
2,992
215
293
41,570
4,773
207
364
43,187
8,898
236
477
41,781
3,594
352
450
41,784
5,313
244
1,027
50,535
45,096
45,556
42,453
46,914
52,798
46,177
48,368
5,962
3,109
5,595
2,717
7,701
2,698
6,888
2,691
5,962
3,053
6,588
3,134
4,473
2,985
7,179
3,035
267,910
262,464
265,527
263,977
269,019
265,232
261,508
271,472
2,031
1,873
864
2,032
1,873
500
2,033
1,873
491
2,045
1,873
487
2,045
1,873
482
2,019
1,873
924
2,032
1,873
1,078
2,047
2,047
0
272,678
266,869
269,924
268,382
273,419
270,048
266,491
275,566
193,393
195,037
198,508
197,382
198,823
188,928
193,044
198,288
LIABILITIES
21 Federal Reserve notes
Deposits
22 To depository institutions
23 U.S. Treasury—General account
Foreign—Official accounts
24
25 Other
26 Total deposits
27 Deferred credit items
28 Other liabilities and accrued dividends5
29 Total liabilities
CAPITAL ACCOUNTS
30
31 Capital
Surplus paid in
32 Other capital accounts
33 Total liabilities and capital accounts
34 MEMO:
Treasury securities
custodyMarketable
for foreignU.S.
and international
accountheld in
Federal Reserve note statement
35 Federal Reserve notes outstanding issued to bank ..
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. Treasury and agency securities
254,833
46,529
208,304
255,573
46,517
209,056
255,395
45,823
209,572
254,294
42,349
211,945
253,508
40,418
213,090
253,538
50,826
202,712
254,499
46,626
207,873
253,313
40,423
212,890
11,083
5,018
0
192,203
11,082
5,018
0
192,956
11,081
5,018
0
193,473
11,079
5,018
0
195,848
11,078
5,018
0
196,994
11,085
5,018
0
186,609
11,082
5,018
0
191,773
11,078
5,018
0
196,794
42 Total collateral
208,304
209,056
209,572
211,945
213,090
202,712
207,873
212,890
1. Some of these data also appear in the Board's H.4.1 (503) release. For
address, see inside front cover.
2. Includes securities loaned—fully guaranteed by U.S. Treasury securities
pledged with Federal Reserve Banks—and excludes securities sold and scheduled
to be bought back under matched sale-purchase transactions.
3. Valued monthly at market exchange rates.
4. Includes special investment account at the Federal Reserve Bank of Chicago
in Treasury bills maturing within 90 days.
5. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
Federal Reserve Banks
1.19
FEDERAL RESERVE BANKS
A11
Maturity Distribution of Loan and Security Holdings
Millions of dollars
Type and maturity groupings
Wednesday
End of month
1987
1987
Dec. 2
Dec. 9
Dec. 16
Dec. 23
Dec. 30
Oct. 30
Nov. 30
Dec. 31
2
3
4
Within 15 days
16 days to 90 days
91 days to 1 year
630
592
38
0
817
776
41
0
836
809
27
0
492
472
20
0
951
943
8
0
587
525
62
0
790
765
25
0
3,815
3,806
9
0
6
7
8
Within 15 days
16 days to 90 days
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
221,651
15,273
50,098
72,004
44,580
14,717
24,979
219,158
9,958
48,842
72,452
47,169
15,313
25,424
219,049
10,345
51,229
69,568
47,170
15,313
25,424
216,715
12,992
43,444
72,373
47,169
15,313
25,424
222,383
11,583
50,901
71,993
47,169
15,313
25,424
217,614
13,609
51,679
70,220
42,513
14,764
24,829
218,960
9,805
52,165
72.716
44,580
14.717
24,977
222,551
11,363
46,112
76,827
47,512
15,313
25,424
11,643
4,087
857
1,572
3,524
1,387
216
7,567
11
857
1,572
3,524
1,387
216
7,556
3
930
1,581
3,495
1,358
189
7,556
208
727
1,578
3,495
1,358
190
9,349
2,041
691
1,653
3,416
1,358
190
10,483
3,056
757
1,474
3,574
1,407
215
9,843
2,527
568
1,621
3,524
1,387
216
8,868
1,560
691
1,653
3,416
1,358
190
9 U.S. Treasury securities—Total
10 Within 15 days 1
11
16 days to 90 days
12 91 days to 1 year
13 Over 1 year to 5 years
14 Over 5 years to 10 years
15 Over 10 years
16 Federal agency obligations—Total
17 Within 15 days'
18
16 days to 90 days
19 91 days to 1 year
20 Over 1 year to 5 years
21 Over 5 years to 10 years
22 Over 10 years
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 1988
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS A N D MONETARY BASE
Billions of dollars, averages of daily figures
1987
Item
1984
Dec.
1985
Dec.
1986
Dec.
1987
Dec.
May
June
July
Aug.
Sept.
Oct.
Nov/
Dec.
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS'
1 Total reserves2
2
3
4
5
Nonborrowed reserves
Nonborrowed reserves plus extended credit3
Required reserves
Monetary base 4
39.91
46.06
56.17
57.44
58.35
57.71
57.60
57.88
57.83
58.50
57.99
57.44
36.72
39.33
39.06
199.60
44.74
45.24
45.00
217.32
55.34
55.64
54.80
239.51
56.66
57.14
56.41
256.70
57.32
57.60
57.27
248.37
56.93
57.20
56.52
248.48
56.93
57.12
56.84
249.46
57.23
57.36
56.84
250.80
56.89
57.29
57.03
251.85
57.55
58.00
57.37
254.35
57.36
57.76
57.06
256.08
56.66
57.14
56.41
256.70
Not seasonally adjusted
6 Total reserves2
7
8
9
10
Nonborrowed reserves
Nonborrowed reserves plus extended credit3
Required reserves
Monetary base 4
40.94
47.24
57.64
58.97
57.30
57.63
57.74
57.39
57.50
58.04
58.09
58.97
37.75
40.35
40.08
202.70
45.92
46.42
46.18
220.82
56.81
57.11
56.27
243.63
58.19
58.67
57.94
261.21
56.26
56.55
56.22
246.83
56.85
57.12
56.43
249.29
57.07
57.27
56.98
251.42
56.74
56.88
56.36
251.42
56.56
56.96
56.70
251.60
57.09
57.54
56.91
253.29
57.47
57.86
57.17
256.82
58.19
58.67
57.94
261.21
40.70
48.14
59.56
62.12
58.34
58.78
58.84
58.36
59.81
61.11
61.20
62.12
37.51
40.09
39.84
204.18
46.82
47.41
47.08
223.53
58.73
59.04
58.19
247.71
61.35
61.86
61.09
266.16
57.30
58.03
57.26
249.94
58.01
58.34
57.59
252.54
58.17
58.37
58.08
254.67
57.71
57.76
57.33
254.36
58.87
58.85
59.02
255.69
60.16
61.22
59.98
258.08
60.58
60.79
60.28
261.67
61.35
61.86
61.09
266.16
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
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 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
i
1984
Dec.
1987
1985
Dec.
1986
Dec.
1987
Dec.
Aug.
Sept.
Oct/
Nov.
760.7
2,892.5'
3,644.7'
4,316.9
8,161.5
756.6
2,891.1
3,657.7
4,331.4
8,231.7
753.0
2,895.6
3,662.3
n.a.
n.a.
Seasonally adjusted
557.5
2,369.1
2,985.4
3,528.1
5,932.9
627.0
2,569.5
3,204.7'
3,837.T
6,746.9
730.5
2,801.2
3,493. l r
4,140.7'
7,598.5
753.0'
2,895.6'
3,662.3'
8,284.9
751.2'
2,875.8'
3,621.3'
4,280.9'
8,098.0
158.5
5.2
248.3
145.5
170.6
5.9
272.2
178.3
183.5
6.4
308.3
232.2
199.7
7.0
291.6
254.7
194.5
7.0
294.1
255.6
196.2
7.0
300.4
257.2
198.4
7.0
295.7
255.5
199.7
7.0
291.6
254.7
1,811.5
616.3
1,942.5
635.2'
2,070.7
691.9'
2,142.5
766.7'
2,124.6'
745.5'
2,131.8'
752.2'
2,134.5
766.6
2,142.5
766.7
Savings deposits8
Commercial Banks
Thrift institutions
122.2
166.6
124.6
179.0
154.5
211.8
177.3
233.3
178.0
241.3
177.5
239.3
177.0
234.9
177.3
233.3
14
15
Small denomination time deposits 9
Commercial Banks
Thrift institutions
386.6
498.6
383.9
500.3
364.7
488.7
384.7
529.9
367.3
504.2'
373.0
509.7'
380.8
520.4
384.7
529.9
16
17
Money market mutual funds
General purpose and broker-dealer
Institution-only
167.5
62.7
176.5
65.1
207.6
84.1
221.5
88.6
215.5
80.7
218.1
81.6
220.2
88.5
221.5
88.6
18
19
Large denomination time deposits 10
Commercial Banks"
Thrift institutions
269.6
147.3
284.1
152.1
291.8
155.3
322.9
166.0
313.6
155.3
317.0
159.1
322.7
162.7
322.9
166.0
20
21
Debt components
Federal debt
Nonfederal debt
1,365.3
4,567.6
1,584.3
5,162.6
1,804.5
5,794.0
1,953.3
6,331.7
1,913.1
6,184.9
1,919.3
6,242.1
1,939.6
6,292.0
n.a.
n.a.
757.7
2,888.5'
3,640.4'
4,310.8'
8,147.3
759.7
2,893.5
3,662.0
4,334.4
8,216.5
769.1
2,909.2
3,677.2
n.a.
n.a.
1
2
3
4
5
Ml
M2
M3
L
Debt
7
8
9
Ml components
Currency 2
Travelers checks 3
Demand deposits
Other checkable deposits5
10
11
Nontransactions components
In M26
In M3 only
12
13
*
Not seasonally adjusted
22
23
24
25
26
Ml
M2
M3
L
Debt
27
28
29
30
Ml components
Currency 2
Travelers checks
Demand deposits 4
Other checkable deposits
31
32
Nontransactions
components
M26
M3 only7
33
34
Money market deposit accounts
Commercial Banks
Thrift institutions
570.3
2,378.3
2,997.2
3,538.8
5,927.1
641.0
2,580.5
3,217.9'
3,848.9'
6,740.6
746.5
2,814.7
3,508.3'
4,154.2'
7,591.7
769.1
2,909.2
3,677.2
8,277.6
749.4
2,868.6'
3,616.0'
4,275.6'
8,081.9
160.8
4.9
257.2
147.4
173.1
5.5
282.0
180.4
186.2
6.0
319.5
235.0
202.7
6.5
302.1
257.8
194.3
7.6
293.3
254.2r
195.9
7.0
299.8
255.0'
199.3
6.6
298.1
255.7
202.7
6.5
302.1
257.8
1,808.0
618.9
1,939.5
637.5'
2,068.2
693.6r
2,140.1
768.1
2.119.2'
747.4'
2,130.8'
751.9'
2,133.7
768.6
2,140.1
768.1
267.4
150.0
332.5
180.7
379.0
192.4
357.2
166.5
362.5
176.8
359.1
173.5
357.2
169.1
357.2
166.5
121.4
166.2
123.9
178.8
153.8
211.8
176.5
233.4
177.9
239.2
178.3
239.4
177.3
235.8
176.5
233.4
386.7
499.6
383.8
501.5
364.4
489.8
384.1
531.0
369.0
503.4'
374.0
511.0'
381.4
521.8
384.1
531.0
167.5
62.7
176.5
65.1
207.6
84.1
221.5
88.6
215.5
80.7
218.1
81.6
220.2
88.5
221.5
88.6
271.2
147.3
285.6
151.9
293.2
154.9
324.4
165.6
314.8'
155.7
318.2'
159.5
323.5
162.8
324.4
165.6
1,364.7
4,562.4
1,583.7
5,156.9
1,804.0
5,787.8
1,952.7
6,324.9
*
8
35
36
Savings deposits
Commercial Banks
Thrift institutions
9
37
38
Small denomination time deposits
Commercial Banks
Thrift institutions
39
40
Money market mutual funds
General purpose and broker-dealer
Institution-only
41
42
Large denomination time deposits
Commercial Banks"
Thrift institutions
43
44
Debt components
Federal debt
Nonfederal debt
For notes see following page.
10
1,900.2
6,181.7
1,909.8
6,237.5
1,935.3
6,281.2
n.a.
n.a.
A14
DomesticNonfinancialStatistics • March 1988
NOTES TO TABLE 1.21
1. Composition of the money stock measures and debt is as follows:
M l : (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 Ian. 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 1
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1987
Bank group, or type of customer
1984
19852
1986
May
July
Aug.
Sept/
Oct.
Seasonally adjusted
Demand deposits
1 All insured banks
2 Major New York City banks
3 Other banks
4 ATS-NOW accounts 4
5 Savings deposits
131,463.1
57,327.3
74,135.9
1,549.1
414.7
156,091.6
70,585.8
85,505.9
1,823.5
384.9
188,345.8
91,397.3
96,948.8
2,182.5
403.5
217,397.2
107,724.1
109,673.1
2,310.5
488.5
212,414.4
103,027.6
109,386.8
2,417.6
565.8
219,501.3
106,428.9
113,072.3
2,498.7
548.2
221,729.0
109,062.5
112,666.5
2,333.1
518.8
219,182.9
105,149.4
114,033.4
2,349.0
524.0
234,398.3
110,833.6
123,564.6
2,591.3
582.4
441.0
1,837.2
277.8
15.3
3.3
500.3
2,196.9
305.7
15.8
3.2
556.5
2,498.2
321.2
15.6
3.0
598.5
2,629.5
340.3
13.3
2.8
601.6
2,671.6
347.8
13.9
3.3
628.6
2,837.4
362.8
14.3
3.1
623.3
2,718.2
357.0
13.2
3.0
625.3
2,715.1
365.7
13.2
3.0
654.9
2,744.7
389.1
14.4
3.3
DEPOSIT TURNOVER
6
7
8
9
10
Demand deposits 3
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 4
Savings deposits
Not seasonally adjusted
DEBITS TO
3
Demand deposits
11 All insured banks
12 Major New York City banks
13 Other banks
14 ATS-NOW accounts 4
15 MMDA
16 Savings deposits
131,450.6
57,282.4
74,164.2
1,552.2
862.3
415.2
156,052.3
70,559.2
85,493.1
1,826.4
1,223.9
385.3
188,506.4
91,500.0
97,006.6
2,184.6
1,609.4
404.1
208,310.0
101,203.2
107,106.7
2,262.9
1,851.2
483.7
221,038.4
106,171.3
114,867.0
2,466.9
1,987.9
565.2
228,764.2
111,157.7
117,606.5
2,466.0
2,002.7
576.5
214,145.9
103,822.8
110,323.1
2,226.4
1,752.7
524.2
216,728.0
104,234.0
112,494.0
2,414.9
1,846.6
519.0
233,999.8
111,398.9
122,600.8
2,577.7
2,247.8
604.3
441.1
1,838.6
277.9
15.4
3.5
3.3
499.9
2,196.3
305.6
15.8
4.0
3.2
556.7
2,499.1
321.2
15.6
4.5
3.0
584.0
2,556.8
337.8
13.2
5.1
2.8
625.0
2,801.5
363.8
14.3
5.4
3.3
651.7
2,928.4
375.7
14.3
5.5
3.3
612.5
2,721.9
354.2
12.8
4.8
3.0
620.2
2,751.0
361.1
13.7
5.1
3.0
657.8
2,824.8
387.6
14.6
6.3
3.5
DEPOSIT TURNOVER
17
18
19
20
21
22
Demand deposits 3
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 4
MMDA®
Savings deposits 5
1. These series have been revised to reflect new benchmark adjustments and
revised seasonal factors as well as some revisions of reported data. Historical
tables containing revised data for earlier periods may be obtained from the
Banking Section, Division of Monetary Affairs, 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.
2. Annual averages of monthly figures.
3. Represents accounts of individuals, partnerships, and corporations and of
states and political subdivisions.
4. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts authorized for automatic transfer to demand deposits (ATS). ATS data are
available beginning December 1978.
5. Excludes ATS and NOW accounts, MMDA and special club accounts, such
as Christmas and vacation clubs.
6. Money market deposit accounts.
A16
1.23
DomesticNonfinancialStatistics • March 1988
LOANS A N D SECURITIES
All Commercial Banks 1
Billions of dollars; averages of Wednesday figures
1987
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 . . .
7
Other commercial and
industrial
8
U.S. addressees 4
9
Non-U.S. addressees
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
2,118.3
2,119.7
2,126.2
2,147.3
2,160.6
2,167.1
2,169.5
2,189.0
2,206.7
2,225.5'
2,223.4
2,222.8
316.3
190.2
1,611.8
554.1
6.8
315.2
193.8
1,610.7
553.8
6.8
314.3
195.5
1,616.4
551.7
6.2
315.8
197.2
1,634.3
553.9
6.5
320.1
197.6
1,642.9
555.9
6.8
316.9
198.5
1,651.7
558.0
6.8
319.8
196.9
1,652.8
555.5
6.7
328.6
194.9
1,665.5
555.6
7.5
331.7
194.6
1,680.4
560.5
7.5
332.2'
194.3
1,699.0'
565.7
7.7
331.0
196.4
1,696.0
567.0
7.1
334.1
196.3
1,692.4
571.1
7.0
547.2
537.8
9.4
499.2
314.9
37.7
546.9
537.9
9.0
504,0
315.2
38.5
545.5
536.9
8.6
511.0
315.7
38.3
547.4
539.0
8.4
517.9
316.6
43.6
549.0
540.9
8.1
526.3
316.7
42.0
551.2
542.8
8.4
537.2
314.5
42.2
548.9
540.6
8.3
544.1
314.6
41.7
548.1
540.0
8.1
551.3
316.9
44.0
553.1
545.0
8.1
556.2
318.9
45.2
558.0
550.1'
7.9
564.3
320.4
46.4
559.9
552.2
7.7
570.9
321.6
38.8
564.1
554.8
9.3
577.4
322.7
33.5
35.7
31.4
34.7
30.8
35.0
30.0
35.4
29.8
35.4
29.9
33.9
29.9
31.9
30.0
30.9
30.2
30.8
30.2
31.4'
30.4
31.6
30.8
31.8
31.3
57.8
10.6
5.9
22.1
42.4
57.2
10.3
6.1
22.2
38.0
57.0
9.7
6.7
22.3
38.9
56.0
9.9
6.7
22.6
41.9
55.2
9.9
5.8
22.9
43.1
54.4
10.3
5.3
23.1
42.8
53.2
9.4
5.2
23.2
44.0
52.6
9.5
5.1
23.3
46.1
52.5
9.8
5.1
23.8
47.3
52.5
10.3'
5.2'
23.8
48.6'
52.1
9.2
5.2
24.1
45.0
51.1
8.6
5.1
24.1
35.7
Not seasonally adjusted
20 Total loans and securities2
2,123.7
2,121.6
2,127.8
2,148.4
2,157.9
2,166.8
2,164.5
2,180.5
2,204.2
2,215.8'
2,224.2
2,239.9
21 U.S. government securities
22 Other securities
23 Total loans and leases 2
24 Commercial and industrial . . . . .
25
Bankers acceptances h e l d 3 . . .
26
Other commercial and
industrial
27
U.S. addressees 4
28
Non-U.S. addressees
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
314.6
193.7
1,615.4
552.4
6.7
318.9
194.1
1,608.6
551.7
6.7
317.2
194.4
1,616.2
554.5
6.2
317.7
195.2
1,635.4
556.5
6.4
319.7
196.8
1,641.4
557.5
6.7
317.4
197.1
1,652.4
559.1
6.9
321.0
194.8
1,648.7
554.6
6.7
327.5
195.3
1,657.7
552.7
7.4
330.4
195.5
1,678.2
559.3
7.6
328.3'
194.8
1,692.6'
563.1'
7.5
330.3
196.9
1,697.0
566.6
7.2
332.4
197.6
1,709.9
574.7
7.3
545.8
537.1
8.7
499.3
317.9
39.4
545.0
536.3
8.7
503.1
314.7
37.5
548.3
539.9
8.4
509.8
313.3
38.6
550.0
541.6
8.4
516.7
314.4
45.1
550.8
542.5
8.3
525.4
314.8
42.0
552.3
543.7
8.6
536.8
313.2
43.0
547.8
539.0
8.8
544.3
313.5
40.9
545.3
536.8
8.5
551.5
316.7
41.5
551.7
543.3
8.4
557.3
319.8
43.6
555.6'
547.2
8.3
565.3
321.4
44.8
559.4
551.0
8.4
572.1
322.7
39.0
567.4
559.0
8.4
578.4
326.3
35.2
35.7
30.7
33.8
29.9
33.8
29.1
34.8
29.1
34.9
29.7
34.0
30.3
31.9
30.7
31.1
31.0
31.5
31.1
31.5'
31.1
32.1
30.9
32.9
31.0
57.8
10.7
5.9
22.4
43.1
57.2
10.5
6.1
22.4
41.5
57.0
9.7
6.7
22.5
41.2
56.0
9.5
6.7
22.7
43.9
55.2
9.6
5.8
22.9
43.6
54.4
10.0
5.3
23.2
43.2
53.2
9.4
5.2
23.1
42.0
52.6
9.3
5.1
23.2
42.9
52.5
10.0
5.1
23.6
44.4
52.5
10.3'
5.2'
23.5
43.8'
52.1
9.3
5.2
23.8
43.3
51.1
9.0
5.1
24.1
42.2
1. These data also appear in the Board's G.7 (407) release.
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.
Commercial Banking Institutions
1.24
A17
MAJOR NONDEPOSIT F U N D S OF COMMERCIAL BANKS 1
Monthly averages, billions of dollars
Source
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
Apr.
May
June
July
Aug.
Sept/
Oct.
Nov.
155.2
154.7
159.6
162.3
164.1
166.5
160.9
169.6
170.4
166.C
161.0
163.2'
158.9'
155.7'
165.5
165.6
177.0
176.4
175.9'
174.9
173.0
174.6
175.4
175.6
171.0
170.5
171.6
174.3
170.4
172.7
171.3
171.4
169.6
170.4
167.7
165.0
166.5
163.3
166.9
167.0
165.9
165.2
165.5
164.5
166.3
167.9
162.3
162.4
-12.0
-6.3
-10.4
-26.1
71.5
45.4
-23.8
68.3
44.5
-21.1
66.0
44.9
-23.0
70.5
47.5
-15.5
68.5
53.0
10.4
75.1
85.5
11.8
14.8
71.1
85.9
12.6
72.9
84.7
72.7
85.3
15.5
75.5
91.0
101.1
100.6
97.7
100.4
95.1
97.4
98.6
98.7
99.2
100.0
101.4
98.7
102.5
99.4
21.3
27.5
23.2
17.7
17.1
20.7
28.6
21.6
26.1
30.8
27.9
25.5
350.1
351.3
351.1
353.2
354.1
356.4
359.8
357.2
366.2
364.8
372.9
369.8
11.2
10.4'
-11.8
63.8
52.0
-14.7
67.7'
53.(y
-17.1'
70.4'
53.3'
-14.1
69.3
55.2
22.9
77.1
100.0
25.1'
79.6
104.7'
23.8'
83.1
106.9
27.3
79.7
106.9
105.2
105.3
108.6
108.6
107.9
107.7
107.6
109.2
107.0
107.1
24.7
26.6
29.1
21.6
23.3
25.5
35.6
30.7
38.6
25.8
24.0
22.4
371.8
368.6
370.9
370.2
370.5
371.8
377.8
379.0
385.0
385.8
386.7
388.2
-1.3'
-1.7'
13.2
MEMO
6 Domestically chartered banks' net positions
with own foreign branches,
not seasonally adjusted
7 Gross due from balances
Gross due to balances
8
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
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.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars.
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
-15.5
67.1
51.5
13.8'
77.2
91.0'
-22.2
66.4
44.2
14.6'
77.2
91.8'
-17.7
64.5
46.8
16.4'
77.5
93.8
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 1988
ASSETS A N D LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Last-Wednesday-of-Month Series 1
Billions of dollars
1987
Account
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
2,279.4
484.7
298.8
185.9
29.0
1,765.6
156.7
1,608.9
551.5
503.5
314.7
239.2
2,279.2
486.2
299.5
186.7
25.2
1,767.8
154.3
1,613.5
555.3
510.7
313.1
234.4
2,306.2
492.5
305.1
187.5
23.3
1,790.3
151.8
1,638.5
555.5
519.0
315.2
248.9
2,318.9
495.4
307.0
188.4
21.4
1,802.1
160.4
1,641.7
558.2
527.4
314.8
241.3
2,313.4
493.2
303.4
189.8
20.2
1,800.0
150.9
1,649.1
558.0
539.1
312.6
239.5
2,324.3
497.7
308.2
189.4
20.4
1,806.2
157.5
1,648.7
551.8
547.3
314.5
235.2
2,342.2
501.7
312.7
189.0
20.0
1,820.5
162.5
1,658.0
551.6
552.7
317.2
236.6
2,368.8
502.6
312.7
189.9
19.5
1,846.7
158.3
1,688.3
564.6
559.1
321.0
243.6
2,396.9'
504. 1'
314.9'
189.2'
19.7
1,873. l r
174.2'
564.1'
566.6'
322.5
245.6'
2,385.2
508.6
316.6
192.0
20.3
1,856.3
163.0
1,693.3
566.2
572.9
322.8
231.4
2,429.8
515.0
320.9
194.1
16.9
1,897.9
175.8
1,722.1
582.4
581.7
329.3
228.8
206.3
28.4
23.5
71.4
203.8
31.1
22.9
68.1
209.7
29.8
24.0
74.5
230.8
37.9
25.1
81.3
213.1
33.8
24.2
74.4
207.1
32.8
24.4
68.6
209.3
37.6
24.6
65.6
221.6
33.3
24.4
81.3
222.0'
38.6r
24.9
78.8'
213.5
34.1
24.0
75.8
231.9
36.6
28.4
80.0
33.0
50.1
32.7
49.0
33.9
47.5
37.2
49.3
31.1
49.7
31.6
49.6
31.4
50.0
32.6
50.0
32.9'
46.8'
33.5
46.2
37.2
49.7
A L L COMMERCIAL BANKING
INSTITUTIONS 2
1 Loans and securities
2 Investment securities
3
U.S. government securities
4
Other
5 Trading account assets
6 Total loans
Interbank loans
7
Loans excluding interbank
8
Commercial and industrial
9
Real estate
10
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
201.1
202.1
204.0
208.7
203.8
189.0
190.7
200.6
192.4'
193.2
189.7
20 Total assets/total liabUities and capital
19 Other assets
2,686.8
2,685.2
2,719.9
2,758.3
2,730.4
2,720.4
2,742.2
2,791.0
2,811.2'
2,791.8
2,851.4
21
22
23
24
25
26
27
1,895.5
569.2
535.9
790.3
425.6
184.6
181.2
1,899.6
568.8
539.7
791.2
414.9
188.7
181.9
1,919.5
590.7
535.1
793.6
422.7
195.2
182.5
1,939.1
596.9
538.6
803.6
435.6
200.3
183.3
1,923.4
578.2
535.0
810.1
428.3
201.3
177.4
1,924.6
573.7
536.0
814.9
424.0
201.1
170.7
1,926.4
572.6
535.2
818.6
435.1
209.2
171.4
1,968.4
610.7
532.7
825.0
424.6
225.0
172.9
1,967.4'
596.5'
529.2'
841.7'
443.6'
226.9'
173.3'
1,970.1
590.4
528.5
851.2
428.5
220.3
173.0
2,012.2
623.2
527.5
861.5
433.2
231.8
174.2
320.1
316.7
318.9
320.6
315.8
322.6
326.3
326.6
328.8'
331.0
332.0
193.7
194.7
196.9
196.1
197.6
195.5
195.4
195.5
194.9'
197.9
199.9
2,130.3
463.3
289.2
174.1
29.0
1,638.0
130.5
1,507.5
474.1
497.0
314.4
221.9
2,121.7
463.6
289.4
174.2
25.2
1,632.9
124.1
1,508.8
474.6
504.1
312.7
217.4
2,146.9
470.0
295.2
174.8
23.3
1,653.6
124.2
1,529.3
473.5
512.0
314.9
229.0
2,156.2
471.5
2%. 7
174.8
21.4
1,663.3
128.6
1,534.7
475.3
520.3
314.5
224.7
2,151.9
469.8
294.0
175.9
20.2
1,661.8
121.5
1,540.4
471.7
532.1
312.3
224.3
2,157.7
473.8
298.4
175.4
20.4
1,663.5
122.9
1,540.6
466.0
539.9
314.2
220.6
2,174.9
478.1
302.7
175.3
20.0
1,676.9
129.5
1,547.4
464.7
544.9
316.8
221.0
2,191.8
478.2
302.1
176.1
19.5
1,694.1
124.8
1,569.3
471.1
551.1
320.6
226.4
2,215.2
480.4
304.8
175.6
19.7
1,715.1
133.1
1,582.0
471.9
558.9
322.2
229.0
2,210.7
484.6
305.9
178.7
20.3
1,705.8
129.6
1,576.3
473.4
564.9
322.5
215.6
2,239.7
490.6
310.7
179.8
16.9
1,732.2
136.8
1,595.4
481.6
572.6
329.0
212.3
188.9
27.1
23.5
71.0
186.5
29.7
22.8
67.7
192.5
27.2
24.0
74.0
213.2
35.9
25.0
80.9
195.3
32.1
24.1
73.9
189.1
31.4
24.4
68.1
190.1
36.2
24.6
65.1
201.4
31.0
24.4
80.7
205.1
36.5
24.9
78.2
196.6
31.5
23.9
75.4
213.1
35.1
28.4
79.5
31.1
36.4
31.1
35.2
31.9
35.4
35.1
36.2
29.3
35.9
29.8
35.4
29.8
34.4
30.6
34.7
31.1
34.4
31.8
33.9
35.2
34.9
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 3
30 Loans and securities
31 Investment securities
32
U.S. Treasury securities
Other
33
34 Trading account assets
35 Total loans
Interbank loans
36
Loans excluding interbank
37
Commercial and industrial
38
Real estate
39
Individual
40
41
All other
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
48 Other assets
49 Total assets/liabilities and capital
50
51
52
53
54
55
56
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
144.0
143.4
144.4
143.1
134.4
121.8
121.5
135.9
131.1
124.4
127.8
2,463.2
2,451.5
2,483.8
2,512.5
2,481.5
2,468.7
2,486.5
2,529.1
2,551.3
2,531.7
2,580.6
1,838.2
561.3
533.9
743.0
336.1
110.8
178.1
1,840.7
560.5
537.7
742.5
319.1
113.0
178.8
1,857.1
582.2
533.1
741.8
328.2
119.1
179.4
1,876.5
588.4
536.6
751.4
337.1
118.8
180.2
1,861.5
569.7
533.0
758.8
328.6
117.1
174.3
1,863.9
565.6
533.9
764.4
321.1
116.1
167.6
1,864.7
564.3
533.0
767.3
335.8
117.6
168.3
1,906.3
602.0
530.6
773.7
326.5
126.5
169.8
1,905.3
587.8
527.0
790.5
346.7
129.1
170.2
1,908.5
581.9
526.2
800.3
324.5
128.8
169.9
1,947.7
614.6
525.2
807.9
332.0
129.8
171.1
1. Data have been revised because of benchmarking to new Call Reports and
new seasonal factors beginning July 1985. Back data are available from the
Banking Section, Board of Governors of the Federal Reserve System, Washington, D.C., 20551.
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.
2. 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.
3. Insured domestically chartered commercial banks include all member banks
and insured nonmember banks.
Weekly Reporting Commercial Banks
1.26
A19
A L L 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
1987
Account
Nov. 4
1 Cash and balances due from depository institutions
2 Total loans, leases, and securities, net
3 U.S. Treasury and government agency
4 Trading acount
Investment account, by maturity
6
One year or less
7
Over one through five years
8
Over five years
9 Other securities
10 Trading account
11 Investment account
States and political subdivisions, by maturity
12
13
One year or less
14
Over one year
15
Other bonds, corporate stocks, and securities
16 Other trading account assets
17 Federal funds sold1
18 To commercial banks
19 To nonbank brokers and dealers in securities
70 Toothers
71 Other loans and leases, gross
?? Other loans, gross
73
Commercial and industrial
24
Bankers acceptances and commercial paper
All other
75
76
U.S. addressees
Non-U.S. addressees
27
Real estate loans
78
79
Revolving, home equity
30
All other
31
To individuals for personal expenditures
3?
To depository and financial institutions
33
Commercial banks in the United States
34
Banks in foreign countries
35
Nonbank depository and other financial institutions .
For purchasing and carrying securities
36
37
To finance agricultural production
38
To states and political subdivisions
39
To foreign governments and official institutions
40
All other
41 Lease financing receivables
4? LESS: Unearned income
43
Loan and lease reserve
44 Other loans and leases, net
45 All other assets
46 Total assets
47 Demand deposits
48 Individuals, partnerships, and corporations
49
States and political subdivisions
50 U.S. government
51 Depository institutions in the United States
5?
Banks in foreign countries
53 Foreign governments and official institutions
54 Certified and officers' checks
55 Transaction balances other than demand deposits
56 Nontransaction balances
57 Individuals, partnerships, and corporations
58 States and political subdivisions
59
U.S. government
60 Depository institutions in the United States
61
Foreign governments, official institutions, and banks . . . .
67 Liabilities for borrowed money
63 Borrowings from Federal Reserve Banks
64 Treasury tax-and-loan notes
65 All other liabilities for borrowed money2
66 Other liabilities and subordinated note and debentures ..
67 Total liabilities
68 Residual (total assets minus total liabilities)3
MEMO
69
70
71
17
73
74
75
Total loans and leases (gross) and investments adjusted
Total loans and leases (gross) adjusted 4
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates—total
Commercial and industrial
Other
Nontransaction savings deposits (including MMDAs)
4
..
Nov. 11
Nov. 25
Dec. 2
Dec. 9
Dec. 16
Dec. 23
Dec. 30
104,047
106,338
100,794
99,175
108,381
97,635
105,035
106,809
113,404
1,028,725
1,019,353
1,019,935
1,013,391
1,023,082
1,012,108
1,024,093
1,015,369
1,023,761
116,718
14,666
102,052
15,884
44,412
41,757
68,571
2,596
65,975
47,846
5,212
42,633
18,129
2,960
74,436
46,827
19,153
8,455
805,026
785,507
276,798
2,289
274,509
271,479
3,030
241,075
14,174
226,901
142,706
51,281
22,363
5,289
23,628
14,679
5,601
31,474
2,888
19,004
19,519
4,650
34,336
766,040
127,920
115,659
13,988
101,671
15,953
44,332
41,385
68,499
2,467
66,031
47,797
5,216
42,580
18,234
3,027
69,181
40,005
20,972
8,204
801,998
782,294
276,231
2,275
273,956
270,881
3,075
241,832
14,240
227,592
142,753
50,954
22,669
4,770
23,514
12,650
5,504
31,366
2,840
18,164
19,705
4,655
34,356
762,987
125,569
118,856
15,399
103,457
15,934
44,997
42,525
68,772
2,415
66,357
47,598
5,227
42,370
18,759
3,114
66,010
40,003
18,031
7,976
802,074
782,372
276,438
2,353
274,085
271,134
2,950
242,598
14,318
228,280
142,430
50,673
21,992
4,970
23,711
12,407
5,573
31,443
2,844
17,965
19,702
4,573
34,318
763,183
124,223
117,548
14,452
103,096
15,798
44,952
42,346
69,038
2,551
66,486
47,541
5,219
42,322
18,945
3,293
61,422
37,024
16,687
7,712
800,960
781,232
275,525
2,224
273,301
270,342
2,959
242,971
14,428
228,543
142,419
49,692
22,038
4,314
23,341
12,488
5,508
31,301
2,813
18,514
19,728
4,519
34,352
762,089
119,818
119,362
15,383
103,979
16,193
45,854
41,933
68,362
2,187
66,175
47,256
5,144
42,112
18,919
3,161
67,365
43,149
17,442
6,774
803,802
784,097
276,545
2,180
274,365
271,375
2,990
243,439
14,436
229,002
142,547
50,579
22,349
4,400
23,829
12,898
5,531
31,124
2,799
18,634
19,705
4,472
34,498
764,832
122,167
119,090
14,787
104,303
16,075
46,142
42,086
68,158
1,981
66,177
47,201
5,192
42,008
18,976
2,869
59,129
36,279
15,957
6,893
801,797
782,016
275,818
2,200
273,618
270,556
3,061
243,640
14,532
229,107
142,995
50,421
21,920
4,516
23,985
12,507
5,522
30,894
2,752
17,467
19,781
4,496
34,439
762,862
120,093
118,434
13,483
104,951
16,075
46,773
42,102
68,297
2,230
66,068
47,083
5,187
41,896
18,984
2,629
66,172
44,741
14,506
6,925
807,409
787,561
277,537
2,063
275,474
272,429
3,045
244,607
14,676
229,931
144,043
50,504
21,933
4,225
24,346
13,002
5,557
30,807
2,810
18,694
19,848
4,497
34,351
768,561
124,260
118,237
12,242
105,994
16,034
46,730
43,230
68,444
2,377
66,066
46,982
5,186
41,7%
19,085
2,675
56,107
35,884
13,776
6,447
808,532
788,562
278,260
1,996
276,264
273,175
3,089
245,278
14,784
230,494
145,052
50,306
21,622
4,506
24,178
12,708
5,560
30,609
2,734
18,055
19,971
4,518
34,108
769,906
121,581
116,677
11,022
105,656
15,891
46,705
43,060
69,372
2,953
66,419
47,012
5,201
41,811
19,406
2,880
63,563
44,223
13,109
6,231
809,594
789,504
279,476
2,010
277,466
274,484
2,982
245,746
15,038
230,708
144,711
49,943
21,565
4,211
24,168
12,748
5,716
30,413
2,680
18,071
20,091
4,400
33,925
771,269
121,907
1,260,693
1,251,260
1,244,952
1,232,384
1,253,630
1,229,836
1,253,388
1,243,758
1,259,072
234,023
180,167
5,493
4,581
24,947
6,928
810
11,098
62,477
535,335
498,289
25,345
773
10,095
833
258,036
345
14,033
243,658
91,392
223,223
175,482
5,140
1,460
25,261
6,445
848
8,587
61,824
535,904
499,007
25,159
748
10,165
825
259,410
260
20,490
238,660
90,957
224,965
173,804
5,344
3,852
24,805
6,604
651
9,906
61,228
536,595
499,467
25,088
764
10,452
824
250,943
369
16,626
233,948
91,615
217,809
171,882
5,601
2,190
23,154
6,467
755
7,761
60,792
535,801
498,327
25,357
832
10,451
834
245,592
330
16,895
228,366
93,573
225,664
177,824
5,658
1,474
23,526
7,090
809
9,282
62,753
536,090
499,014
25,022
779
10,429
846
257,182
415
16,117
240,650
92,179
213,083
168,885
5,193
1,364
21,664
7,017
763
8,195
62,306
536,826
499,662
25,292
763
10,278
831
242,751
630
5,382
236,739
94,971
237,816
183,331
6,192
3,716
27,733
6,499
1,035
9,309
62,399
536,098
498,785
25,381
910
10,208
815
245,768
565
12,394
232,809
91,987
230,209
180,792
6,0%
3,427
23,983
6,652
689
8,570
62,574
536,529
498,816
25,425
898
10,580
810
242,416
185
22,168
220,063
92,826
239,169
184,002
5,887
3,139
26,9%
6,883
1,199
11,063
62,235
534,985
497,334
25,370
892
10,602
788
249,921
430
23,170
226,320
94,139
1,181,263
1,171,318
1,165,346
1,153,568
1,173,868
1,149,938
1,174,069
1,164,555
1,180,450
79,430
79,942
79,606
78,816
79,762
79,898
79,318
79,203
78,622
998,521
810,272
172,558
1,708
1,248
459
224,976
995,690
808,504
172,597
1,718
1,263
455
224,971
996,831
806,089
172,906
1,778
1,321
456
225,070
993,200
803,321
172,866
1,812
1,352
460
224,050
9%,554
805,669
171,172
1,731
1,270
461
225,674
992,845
802,728
172,264
1,699
1,245
454
225,236
996,267
806,907
172,002
1,557
1,126
431
224,754
996,490
807,134
173,729
1,500
1,080
420
223,278
9%,299
807,370
173,501
1,366
1,057
309
222,410
1. Includes securities purchased under agreements to resell.
2. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
3. This is not a measure of equity capital for use in capital-adequacy analysis or
for other analytic uses.
Nov. 18
4. Exclusive of loans and federal funds transactions with domestic commercial
banks.
5. 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 1988
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures except as noted
1987
Account
Nov. 4
1 Cash balances due from depository institutions
2 Total loans, leases and securities, net1
Securities
3 U.S. Treasury and government agency
4 Trading account 2
5 Investment account, by maturity
6
One year or less
Over one through five years
7
8
Over five years
9 Other securities
10 Trading account 2
11 Investment account
12
States and political subdivisions, by maturity
13
One year or less
14
Over one year
15
Other bonds, corporate stocks and securities
16 Other trading account assets
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Loans and leases
Federal funds sold
To commercial banks
To nonbank brokers and dealers in securities
To others
Other loans and leases, gross
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans
Revolving, home equity
All other
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other
Lease financing receivables
LESS: Unearned income
Loan and lease reserve
Other loans and leases, net
All other assets 4
46 Total assets
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
Deposits
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits
(ATS, NOW, Super NOW, telephone transfers) . . . .
Nontransaction balances
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Foreign governments, official institutions, and banks ..
Liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money5
Other liabilities and subordinated note and debentures ..
67 Total liabilities
68 Residual (total assets minus total liabilities)
6
Nov. 11
Nov. 18
Nov. 25
Dec. 2
Dec. 9
Dec. 16
Dec. 23
Dec. 30
25,488
26,426
23,107
22,068
25,598
25,475
24,132
25,476
29,583
219,018
214,596
214,864
210,656
216,067
210,791
216,610
211,747
215,374
0
0
14,141
1,441
4,216
8,483
0
0
16,572
13,482
788
12,694
3,090
0
0
0
13,821
1,469
4,122
8,230
0
0
16,657
13,453
795
12,659
3,203
0
0
0
14,368
1,517
4,640
8,212
0
0
16,736
13,355
786
12,568
3,381
0
0
0
13,718
1,498
4,663
7,557
0
0
16,753
13,291
775
12,515
3,462
0
0
0
14,311
1,452
4,681
8,178
0
0
16,926
13,262
874
12,387
3,664
0
0
0
14,224
1,417
4,608
8,199
0
0
16,953
13,258
880
12,379
3,694
0
0
0
14,451
1,523
4,609
8,319
0
0
17,029
13,262
865
12,397
3,766
0
0
0
14,333
1,245
4,643
8,445
0
0
16,927
13,274
879
12,395
3,653
0
0
0
14,553
1,381
4,707
8,465
0
0
17,144
13,302
868
12,434
3,842
0
31,439
14,259
11,826
5,354
172,495
167,986
59,181
438
2,313
42,188
58,742
58,214
529
44,501
21,522
21,852
11,770
3,287
6,795
5,882
331
7,721
742
6,254
4,509
1,438
14,190
156,866
61,352
29,539
11,479
12,850
5,209
170,239
165,726
58,562
380
2,329
42,315
58,182
57,635
547
44,644
21,596
21,738
12,156
2,784
6,798
4,394
324
7,697
638
6,132
4,512
1,444
14,216
154,579
58,613
30,165
14,241
10,959
4,965
169,145
164,656
57,841
411
2,353
42,497
57,430
56,957
473
44,850
21,139
21,475
11,733
2,968
6,774
4,794
342
7,770
664
5,781
4,489
1,365
14,186
153,594
60,326
26,826
11,953
9,992
4,881
168,903
164,383
56,954
358
2,373
42,568
56,596
56,142
455
44,940
21,266
21,306
11,923
2,460
6,923
5,037
300
7,745
625
6,210
4,520
1,348
14,196
153,359
56,001
30,182
15,313
10,779
4,090
170,214
165,729
57,463
357
2,389
42,834
57,105
56,655
450
45,222
21,282
21,576
12,112
2,487
6,978
5,560
297
7,665
663
6,000
4,485
1,329
14,237
154,648
57,512
26,163
11,985
9,544
4,635
169,022
164,483
57,105
336
2,407
43,070
56,769
56,277
491
45,478
21,356
21,654
12,015
2,682
6,957
4,824
307
7,502
610
5,646
4,539
1,338
14,233
153,451
54,028
28,858
16,333
8,947
3,578
171,794
167,248
58,195
318
2,424
43,529
57,878
57,406
472
45,953
21,552
21,926
12,135
2,342
7,449
5,291
323
7,423
712
5,871
4,546
1,346
14,176
156,272
55,866
24,645
12,412
8,312
3,921
171,250
166,696
58,010
306
2,441
44,059
57,704
57,244
460
46,500
21,682
21,824
12,180
2,625
7,020
4,944
284
7,347
657
5,448
4,554
1,360
14,048
155,841
51,969
26,753
15,081
8,320
3,352
172,264
167,699
58,447
304
2,463
44,559
58,142
57,743
400
47,022
21,849
21,631
12,123
2,316
7,193
4,724
282
7,386
597
5,760
4,565
1,365
13,975
156,924
53,517
305,858
299,635
298,296
288,726
299,176
290,294
296,608
289,192
298,474
63,618
44,225
879
870
6,118
5,623
671
5,232
56,801
39,952
1,066
261
5,871
5,226
703
3,722
60,251
40,612
889
717
7,116
5,303
517
5,098
54,185
38,671
791
367
5,715
5,223
587
2,831
56,287
39,683
912
192
5,292
5,846
678
3,684
53,403
37,296
846
187
5,434
5,759
626
3,255
62,863
43,119
968
595
7,680
5,337
889
4,274
58,495
41,654
810
566
5,999
5,277
553
3,636
63,743
42,692
758
593
7,573
5,640
1,061
5,424
8,073
101,446
92,300
6,794
67
1,870
415
70,652
0
3,283
67,369
38,767
8,094
101,376
92,527
6,530
55
1,876
388
73,380
0
5,007
68,372
36,398
8,002
101,404
92,574
6,542
57
1,844
388
69,556
0
4,222
65,334
35,763
7,932
101,097
92,342
6,481
56
1,833
385
64,759
0
4,327
60,432
37,632
8,171
101,566
93,046
6,238
57
1,829
395
73,560
0
4,173
69,387
36,196
8,062
101,144
92,551
6,326
60
1,833
373
65,077
0
1,269
63,808
39,044
8,163
101,300
92,737
6,248
59
1,886
370
63,327
0
3,602
59,726
37,553
8,249
101,225
92,647
6,127
50
2,015
386
58,880
0
5,570
53,310
38,953
8,337
101,540
92,979
6,122
50
2,015
373
61,299
0
5,642
55,656
40,347
282,557
276,049
274,976
265,606
275,780
266,731
273,208
265,802
275,266
23,301
23,586
23,321
23,120
23,396
23,562
23,401
23,390
23,208
208,618
177,905
38,448
206,620
176,142
38,397
204,441
173,336
38,361
202,325
171,854
38,016
204,208
172,971
37,776
202,361
171,185
37,761
203,663
172,184
37,476
202,563
171,303
37,881
203,510
171,813
37,437
MEMO
69 Total loans and leases (gross) and investments adjusted •
70 Total loans and leases (gross) adjusted
71 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 Commercial Banks
1.30
LARGE WEEKLY REPORTING U.S. BRANCHES A N D AGENCIES OF FOREIGN B A N K S 1
Liabilities
A21
Assets and
Millions of dollars, Wednesday figures
1987
Account
Nov.
37
38
39
40
Cash and due from depository institutions . . .
Total loans and securities
U.S. Treasury and government 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 governments 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 balances .
Individuals, partnerships, and
corporations
Other
Nontransaction accounts
Individuals, partnerships, and
corporations
Other
Borrowings from other than directly
related institutions
Federal funds purchased 3
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
4
Nov.
11
Nov.
18
Nov.
25
Dec.
2
Dec.
9
Dec.
16
Dec.
23
Dec.
30
10,434
97,204
10,013
96,081
10,922
98,486
9,970
96,156
11,801
96,785
9,920
99,280
10,326
100,996
10,150
102,108
10,878
106,201
7,466
7,402
8,474
6,730
1,744
73,860
49,111
7,290
7,516
8,073
6,081
1,992
73,202
47,548
7,558
7,456
10,615
8,191
2,423
72,857
48,072
7,328
7,450
7,679
5,663
2,016
73,698
47,700
7,681
7,394
6,947
4,174
2,772
74,763
48,231
7,626
7,299
8,988
6,354
2,634
75,367
49,280
7,511
7,341
10,272
8,152
2,120
75,872
49,217
7,370
7,474
9,364
7,490
1,874
77,899
50,530
7,056
7,811
11,688
10,136
1,552
79,645
52,377
3,361
45,751
43,421
2,330
15,597
11,644
1,012
2,940
1,553
45,995
43,597
2,398
15,815
11,872
913
3,029
1,448
46,624
44,234
2,391
15,605
11,437
1,133
3,035
1,501
46,199
43,743
2,456
16,805
12,688
1,093
3,024
1,488
46,744
44,400
2,344
16,618
12,218
1,288
3,112
1,524
47,756
45,281
2,475
16,237
11,806
1,272
3,159
1,457
47,760
45,192
2,568
16,279
11,924
1,223
3,132
1,528
49,002
46,751
2,251
16,901
12,429
1,208
3,264
1,668
50,709
48,526
2,183
16,766
12,153
1,245
3,368
388
2,062
6,701
28,927
15,953
152,517
400
2,339
7,100
31,776'
14,071
151,942'
407
1,655
7,118
31,619
13,816
154,844
403
1,738
7,052
31,805
16,081
154,012
401
1,991
7,522
31,787
14,182
154,555
411
1,971
7,468
31,798
13,879
154,877
398
2,200
7,777
31,264
12,498
155,084
400
2,201
7,866
31,427
13,256
156,942
418
2,121
7,962
31,500
12,676
161,255
42,747 R
3,527'
42,397 R
3,341'
41,917 R
3,221'
41,849
2,918
41,773
2,841
42,366
3,092
43,088
3,206
43,349
3,033
44,244
3,461
1,865
1,662'
39,219
1,908'
1,432'
39,056
1,932
1,289'
38,696
1,714
1,204'
38,931
1,709
1,132
38,932
1,969
1,123
39,274
1,876
1,330
39,882
1,909
1,124
40,315
1,895
1,566
40,783
31,889
7,330
31,954
7,102
31,655
7,042
31,912
7,018
31,234
7,699
31,430
7,844
32,290
7,592
32,718
7,597
33,190
7,593
56,494
27,448
54,297'
25,598
57,873'
28,195
58,464'
27,249
58,777
28,495
56,187
25,886
56,865
25,380
54,285
22,167
56,753
24,201
17,568
9,880
29,046'
15,592
10,007
28,699'
17,030
11,166
29,678'
16,924
10,326
31,215'
16,373
12,122
30,282
13,943
11,943
30,302
15,256
10,124
31,486
12,413
9,754
32,118
15,115
9,086
32,552
22,743'
6,303
33,004
20,272
152,517
22,672
6,027
32,830
22,417
151,942'
23,826
5,851
32,928
22,124
154,844
24,299'
6,916
33,016
20,683
154,012
23,841
6,441
33,304
20,701
154,555
23,081
7,221
33,338
22,986
154,877
24,295
7,190
32,544
22,587
155,084
24,359
7,759
32,639
26,668
156,942
25,128
7,424
32,557
27,701
161,255
78,829
63,960
78,128
63,322
78,857
63,843
77,804
63,026
80,393
65,317
81,121
66,195
80,920
66,068
82,189
67,344
83,912
69,044
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 1988
GROSS D E M A N D DEPOSITS Individuals, Partnerships, and Corporations 1
Billions of dollars, estimated daily-average balances, not seasonally adjusted
Commercial banks
Type of holder
1987
1986
1982
Dec.
1983
Dec.
1984
Dec.
Dec.^ 4
June
Sept.
Dec.
Mar.
June
Sept.
1 All holders—Individuals, partnerships, and
corporations
291.8
293.5
302.7
321.0
322.4
333.6
363.6
335.9
340.2
339.0
2
3
4
5
6
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
32.3
178.5
85.5
3.5
21.2
32.3
180.0
86.4
3.0
20.7
35.9
185.9
86.3
3.3
22.2
41.4
202.0
91.1
3.3
25.8
35.9
183.0
88.9
2.9
25.2
36.6
187.2
90.1
3.2
23.1
36.5r
188.2
88.7
3.2
22.4
Financial business
Nonfinancial business
Consumer
Foreign
Other
Weekly reporting banks
1986
1982
Dec.
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
1983
Dec.
1987
Dec.^'4
June
Sept.
Dec.
Mar.
June
Sept.
144.2
146.2
157.1
168.6
168.5
174.7
195.1
178.1
179.3
179.1
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
25.9
94.5
33.2
3.1
12.0
25.7
93.1
34.9
2.9
11.9
28.9
94.8
35.0
3.2
12.8
32.5
106.4
37.5
3.3
15.4
28.7
94.4
36.8
2.8
15.5
29.3
94.8
37.5
3.1
14.6
29.3
96.0
37.2
3.1
13.5
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; noniinancial 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
1984
Dec. 2
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
1987
1983
Dec.
Instrument
1984
Dec.
1985
Dec.
1986
Dec.
1987
Dec.
June
July
Aug.
Sept.
Oct.
Nov. 1
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
6
Financial companies 2
Dealer-placed paper
Total
Bank-related (not seasonally
adjusted)
Directly placed paper
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies
187,658
237,586
300,899
331,016
n.a.
348,741
348,247
352,737
358,828
360,013
349,678
44,455
56,485
78,443
100,207
n.a.
108,691
107,709
110,714
115,570
111,098
103,539
2,441
2,035
1,602
2,265
n.a.
2,430
2,311
2,404
2,590
2,689
1,893
97,042
110,543
135,504
152,385
n.a.
161,921
162,185
163,620
166,169
171,392
168,676
35,566
46,161
42,105
70,558
44,778
86,952
40,860
78,424
n.a.
n.a.
47,862
78,129
46,354
78,353
45,487
78,403
46,815
77,089
46,249
77,523
45,353
77,463
Bankers dollar acceptances (not seasonally adjusted) 6
7 Total
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
Basis
14 Imports into United States
15 Exports from United States
16 All other
8
9
10
11
12
13
78,309
78,364
68,413
64,974
72,581
69,622
68,495
68,645
68,771
71,891
71,091
9,355
8,125
1,230
9,811
8,621
1,191
11,197
9,471
1,726
13,423
11,707
1,716
10,924
9,445
1,479
11,234
9,661
1,573
10,664
9,630
1,035
10,870
9,905
965
10,521
9,400
1,121
10,856
9,742
1,114
10,701
9,714
987
418
729
67,807
0
671
67,881
0
937
56,279
0
1,317
50,234
0
965
58,692
0
1,717
56,671
0
1,463
56,367
0
1,397
56,379
0
1,467
56,784
0
1,400
59,635
0
1,134
59,257
15,649
16,880
45,781
17,845
16,305
44,214
15,147
13,204
40,062
14,670
12,960
37,344
16,513
15,221
38,847
16,179
14,161
39,281
17,431
14,659
36,405
17,087
14,967
36,590
17,198
15,046
36,526'
17,814
15,949
38,122
17,026
15,435
38,630
1. A change in the reporting panel in November resulted in a slight understatement of outstanding volume.
2. Institutions engaged primarily in activities such as, but not limited to,
commercial savings, and mortgage banking; sales, personal, and mortgage financing; factoring, finance leasing, and other business lending; insurance underwriting; and other investment activities.
3. Includes all financial company paper sold by dealers in the open market.
4. As reported by financial companies that place their paper directly with
investors.
1.33
5. Includes public utilities and firms engaged primarily 'in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
6. 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 B A N K S on Short-Term Business Loans
Percent per year
Effective Date
10.50
10.00
9.50
9.00
8.50
8.00
7.50
1
1
15
Sept. 4
Oct. 7
??
Nov. 5
1987—Apr.
May
Month
7.75
8.00
8.25
8.75
9.25
9.00
8.75
NOTE. These data also appear in the Board's H.15 (519) release. For address,
see inside front cover.
Average
rate
1985—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
10.61
10.50
10.50
10.50
10.31
9.78
9.50
9.50
9.50
9.50
9.50
9.50
1986—Jan.
Feb.
Mar.
Apr.
May
June
9.50
9.50
9.10
8.83
8.50
8.50
Month
1986—July
Aug.
Sept.
Oct.
Nov.
Dec.
1987—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct..
Nov.
Dec.
A24
1.35
DomesticNonfinancialStatistics • March 1988
INTEREST RATES Money and Capital Markets
Averages, percent per year; weekly and monthly figures are averages of business day data unless otherwise noted.
1987, week ending
1987
Instrument
1985
1986
1987
Sept.
Oct.
Nov.
Dec.
Nov.
27
Dec.
4
Dec.
11
Dec.
18
Dec.
25
MONEY MARKET RATES
Federal funds 1,2
Discount widow boirowing 1, •
Commercial paper
3
1-month
4
3-month
5
6-month
Finance paper, directly placed 4.
6
1-month
3-month
7
8
6-month
Bankers acceptances ,6
9
3-month
10
6-month
Certificates of deposit, secondary market
1-month
11
1? 3-month
6-month
N
8
14 Eurodollar deposits,, 3-month
U.S. Treasury bills
9
Secondary market
15
3-month
16
6-month
17
1-year
Auction average 0
18
3-month
19
6-month
20
1-year
1
2
8.10
7.69
6.80
6.33
6.66
5.66
7.22
5.95
7.29
6.00
6.69
6.00
6.77
6.00
6.78
6.00
6.89
6.00
6.84
6.00
6.58
6.00
6.75
6.00
7.94
7.95
8.01
6.62
6.49
6.39
6.74
6.82
6.85
7.26
7.37
7.55
7.38
7.89
7.96
6.77
7.17
7.17
7.76
7.61
7.49
6.75
7.20
7.21
7.28
7.47
7.42
7.77
7.64
7.56
8.18
7.93
7.72
7.90
7.64
7.46
7.91
7.77
7.75
6.58
6.38
6.31
6.61
6.54
6.37
7.20
7.08
6.90
7.28
7.40
7.17
6.63
6.91
6.69
7.23
6.97
6.64
6.60
7.03
6.61
6.67
7.17
6.59
7.48
6.95
6.60
7.62
6.99
6.68
7.24
6.95
6.69
7.92
7.96
6.39
6.29
6.75
6.78
7.31
7.48
7.85
7.92
7.07
7.07
7.48
7.41
7.14
7.14
7.41
7.37
7.64
7.56
7.69
7.59
7.41
7.31
7.97
8.05
8.25
8.28
6.61
6.52
6.51
6.71
6.75
6.87
7.01
7.06
7.25
7.37
7.74
7.51
7.39
8.02
8.19
8.29
6.80
7.24
7.31
7.41
7.86
7.66
7.67
7.86
6.77
7.26
7.33
7.38
7.72
7.61
7.62
7.71
7.88
7.75
7.78
7.84
8.16
7.88
7.88
8.13
7.93
7.61
7.61
7.90
7.48
7.65
7.81
5.98
6.03
6.08
5.78
6.03
6.32
6.40
6.64
7.11
6.13
6.69
7.05
5.69
6.19
6.50
5.77
6.36
6.69
5.72
6.17
6.56
5.41
6.15
6.55
5.86
6.44
6.74
5.90
6.43
6.73
5.83
6.44
6.71
7.49
7.66
7.81
5.97
6.02
6.07
5.82
6.05
6.33
6.32
6.57
6.74
6.40
6.86
6.89
5.81
6.23
6.48
5.80
6.36
6.74
5.70
6.11
6.48
5.49
6.12
5.81
6.42
6.00
6.45
n.a.
n.a.
n.a.
5.96
6.48
6.74
8.43
6.46
6.77
7.67
7.59
6.96
7.17
7.02
7.02
7.24
9.27
9.64
10.13
10.51
10.62
10.97
10.79
7.19
7.42
7.68
7.94
8.23
8.39
n.a.
8.59
8.34
8.67
8.94
9.26
9.42
n.a.
9.59
7.23
6.87
7.06
7.31
7.55
7.68
7.85
7.80
8.40
8.75
9.08
9.37
9.52
n.a.
9.61
7.69
7.99
8.35
8.69
8.86
n.a.
8.95
7.86
8.13
8.45
8.82
8.99
n.a.
9.12
7.76
8.05
8.41
8.77
8.95
n.a.
9.03
7.75
8.04
8.40
8.80
8.98
n.a.
9.12
7.93
8.21
8.54
8.96
9.14
n.a.
9.31
7.91
8.17
8.50
8.88
9.05
n.a.
9.18
7.85
8.12
8.41
8.72
8.87
n.a.
8.97
10.75
8.14
8.64
9.58
9.61
8.99
9.12
9.06
9.14
9.31
9.18
8.95
8.60
9.58
9.11
6.95
7.76
7.32
7.14
8.17
7.64
7.66
8.67
8.26
7.90
8.85
8.70
7.50
8.47
7.95
7.45
8.42
7.96
7.45
8.40
7.96
7.45
8.40
7.90
7.50
8.45
8.10
7.50
8.45
8.01
7.40
8.40
7.95
12.05
11.37
11.82
12.28
12.72
9.71
9.02
9.47
9.95
10.39
9.92
9.38
9.68
9.99
10.58
10.64
10.18
10.35
10.72
11.31
10.97
10.52
10.74
10.98
11.62
10.54
10.01
10.27
10.63
11.23
10.59
10.11
10.33
10.62
11.29
10.51
10.01
10.21
10.61
11.22
10.55
10.06
10.28
10.62
11.23
10.61
10.14
10.36
10.64
11.30
10.65
10.19
10.40
10.65
11.36
10.59
10.08
10.31
10.59
11.28
12.06
9.61
9.95
10.84
11.07
10.39
10.42
10.40
10.42
10.70
10.41
10.21
10.49
4.25
8.76
3.48
8.37
3.08
8.64
2.78
8.99
3.25
9.11
3.66
9.08
3.71
9.02
3.69
8.99
3.86
9.02
3.78
9.10
3.66
9.07
3.59
CAPITAL MARKET RATES
71
??
?3
74
75
26
77
28
29
U.S. Treasury notes and bonds"
Constant maturities
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year3
Composite
Over 10 years (long-term)
State and local notes and bonds
Moody's series14
30
31
32
Baa
Bond Buyer series15
Corporate bonds 16
Seasoned issues
33
All industries
34
35
Aa
36
A
37
Baa
38 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 days, 90-119 days,
and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and
150-179 days for finance paper.
5. Yields are quoted on a bank-discount basis, rather than in 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 A23
1.36
STOCK MARKET
Selected Statistics
1987
Indicator
1986
1985
1987
Apr.
May
June
Aug.
July
Sept.
Oct.
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
Utility
4
5
Finance
6 Standard & Poor's Corporation
(1941-43 = 10)1
7 American Stock Exchange 2
(Aug. 31, 1973 = 50)
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
108.09
123.79
104.11
56.75
114.21
136.00
155.85
119.87
71.36
147.19
161.70
195.31
140.39
74.29
146.48
163.88
199.03
137.91
72.74
150.52
163.00
198.78
141.30
71.64
145.97
169.58
206.61
150.39
74.25
152.73
174.28
214.12
157.49
74.18
152.27
184.18
226.49
164.02
78.20
160.94
178.39
219.52
158.58
76.13
154.08
157.13
189.86
140.95
73.27
137.35
137.21
163.42
117.57
69.86
118.30
134.88
162.19
115.85
67.39
111.47
186.84
236.34
286.83
289.32
289.12
301.36
310.09
329.36
318.66
280.16
245.01
240.96
229.10
264.38
316.61
330.65
328.77
334.49
348.68
361.52
353.72
306.34
249.42
248.52
109,191
8,355
141,385
11,846
188,642
13,832
187,135
14,420
170,898
11,655
163,380
12,813
180,356
12,857
193,477
13,604
177,319
12,381
277,026
18,173
179,481
11,268
178,517
13,422
Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers 3
28,390
36,840
31,990
39,820
38,890
38,420
40,250
41,640
44,170
38,250
34,180
31,990
Free credit balances at brokers4
11 Margin-account
12 Cash-account
2,715
12,840
4,880
19,000
4,750
15,640
4,660
17,285
4,355
16,985
3,680
15,405
4,095
15,930
4,240
16,195
4,270
15,895
8,415
18,455
6,700
15,360
4,750
15,640
Margin requirements (percent of market value and effective date) 6
13 Margin stocks
14 Convertible bonds
15 Short sales
Mar. 11, 1968
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.
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. These regulations, adopted by the Board of Governors pursuant to the
Securities Exchange Act of 1934, limit the amount of credit to purchase and carry
"margin securities" (as defined in the regulations) when such credit is collateralized by securities. Margin requirements on securities other than options are the
difference between the market value (100 percent) and the maximum loan value of
collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15,
1934; Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968;
and Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977, the Board of Governors for the first time established in
Regulation T the initial margin required for writing options on securities, setting
it at 30 percent of the current market-value of the stock underlying the option. On
Sept. 30,1985, the Board changed the required initial margin, allowing it to be the
same as the option maintenance margin required by the appropriate exchange or
self-regulatory organization; such maintenance margin rules must be approved by
the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC
approved new maintenance margin rules, permitting margins to be the price of the
option plus 15 percent of the market value of the stock underlying the option.
A26
1.37
DomesticNonfinancialStatistics • March 1988
SELECTED FINANCIAL INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1987
1986
Account
1984
1985
Dec.
Jan.
Feb.
Mar.
May
Apr.
June
July
Aug.
Sept.
Oct.
Savings and loan associations
1 Assets
903,488
948,781
963,316
935,516
936,877
939,722
944,291
952,686r 949,100' 949,266' 955,253' 956,744' 973,992
2 Mortgage-backed securities . .
3 Cash and investment securities'
4 Other
124,801
223,396
97,303
126,712
238,833
123,257
142,700
251,769
129,340
132,733
261,869
128,856
135,884
263,782
129,279
138,727
266,407
134,743
136,370
274,834
141,032
138,295
283,661
5 Liabilities and net worth
903,488
948,781
963,316
935,516
936,877
939,722
944,291
952,686r 949,100' 949,266' 955,253' 956,744' 973,992
725,045
125,666
64,207
61,459
17,944
750,071
138,798
73,888
64,910
19,045
741,081
159,742
80,194
79,548
20,071
721,759
153,373
75,552
77,821
19,773
722,276
152,173
75,671
76,502
21,823
722,548
158,175
76,469
81,706
18,958
716,798
165,881
77,857
88,024
20,870
718,633
171,278
78,583
92,695
22,621
34,833
41,064
42,423
40,606
40,601
40,040
40,741
6 Savings capital
7 Borrowed money
8 FHLBB
9 Other
10 Other
11 Net worth 2
40,144''
140,643' 140,894 144,058
138,126' 138,521 137,323
285,438' 287,517' 292,737
146,247' 150,230
131,729' 139,675
295,225' 301,229
715,662 716,389 717,259 721,409 727,274
175,393' 174,357 178,642 180,360 190,706
79,546
80,848
79,188
78,888
83,303
96,205' 95,469
99,096
99,512 107,403
19,566' 20,679' 21,941' 19,158' 20,9%
38,472'
37,836'
37,406'
35,814'
35,003
FSLIC-insured federal savings banks
12 Assets
98,559
131,868
210,562
235,428
235,763
241,418
246,277
253,006r 264,106' 268,813' 272,088' 272,789' 276,490
n Mortgages
14 Mortgage-backed securities
15 Other
57,429
9,949
10,971
72,355
15,676
11,723
113,638
29,766
19,034
136,770
33,570
15,769
136,489
34,634
16,060
138,882
36,088
16,605
140,854
37,500
17,034
144,581
39,371
17,200
16 Liabilities and net worth
98,559
131,868
210,562
235,428
235,763
241,418
246,277
253,006' 264,106' 268,813' 272,088' 272,789' 276,490
17
18
19
70
71
22
79,572
12,798
7,515
5,283
1,903
4,286
103,462
19,323
10,510
8,813
2,732
6,351
157,872
37,329
19,897
17,432
4,263
11,098
176,741
40,614
20,730
19,884
5,304
12,774
178,676
39,777
20,226
19,551
5,480
13,151
178,672
43,919
21,104
22,815
5,265
13,564
180,637
46,125
21,718
24,407
5,547
13,978
182,802
49,8%
22,788
27,108
6,044
14,272
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
150,421 152,885 154,058
40,969' 42,712
43,531
17,924' 17,546' 17,779
154,658'
44,422'
17,559'
156,460
45,132
17,383
189,998 193,890 194,853 195,213
53,255' 53,652
56,540
55,660
26,287
24,486
24,981
25,546
30,114
28,769' 28,671
30,253
6,141'
6,454'
5,630'
5,988'
14,871' 15,134
15,123
15,408
197,2%
57,551
27,350
30,201
6,308
15,348
Savings banks
23 Assets
203,898
216,776
236,866
235,603
238,074
240,739
243,454
245,906
244,760
246,833
249,888
251,472
255,989
102,895
24,954
110,448
30,876
118,323
35,167
119,199
36,122
119,737
37,207
121,178
38,012
122,769
37,136
124,936
37,313
128,217
35,200
129,624
35,591
130,721
36,793
133,298
36,134
135,317
36,471
14,643
19,215
2,077
23,747
4,954
11,413
13,111
19,481
2,323
21,199
6,225
13,113
14,209
25,836
2,185
20,459
6,894
13,793
13,332
26,220
2,180
19,795
5,239
13,516
13,525
26,893
2,168
19,770
5,143
13,631
13,631
27,463
2,041
19,598
5,703
13,713
13,743
28,700
2,063
19,768
5,308
13,967
13,650
28,739
2,053
19,956
5,176
14,083
13,549
27,785
2,059
18,803
4,939
14,208
13,498
28,252
2,050
18,821
4,806
14,191
13,720
28,913
2,038
18,573
4,823
14,307
13,122
29,655
2,023
18,431
4,484
14,325
13,817
30,202
2,034
18,062
5,529
14,557
32 LiabUities
203,898
216,776
236,866
235,603
238,074
240,739
243,454
245,906
244,760
246,833
249,888
251,472
255,989
33 Deposits 3
34 Regular
Ordinary savings
35
36
Time
37 Other
38 Other liabilities
39 General reserve accounts
180,616
177,418
33,739
104,732
3,198
12,504
10,510
185,972
181,921
33,018
103,311
4,051
17,414
12,823
192,194
186,345
37,717
100,809
5,849
25,274
18,105
191,441
186,385
38,467
100,604
5,056
24,710
18,236
192,559
187,597
39,370
100,922
4,962
25,663
18,486
193,693
188,432
40,558
100,896
5,261
27,003
18,830
193,347
187,791
41,326
100,308
5,556
29,105
19,423
194,742
189,048
41,967
100,607
5,694
30,436
19,603
193,274
187,669
42,178
100,604
5,605
30,515
19,549
194,549
188,783
41,928
102,603
5,766
31,655
19,718
195,895
190,335
41,767
105,133
5,560
32,467
20,471
196,824
191,376
41,773
107,063
5,448
32,827
20,407
199,336
193,777
42,045
109,486
5,559
34,226
20,365
24
25
26
27
28
29
30
31
Loans
Mortgage
Other
Securities
U.S. government
Mortgage-backed securities . .
State and local government . .
Corporate and other
Cash
Other assets
Financial Markets A23
1.37—Continued
1987
1986
Account
1984
1985
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
1,017,018
1,026,919
Oct.
Credit unions 4
40 Total assets/liabilities
and capital
93,036
118,010
147,726
149,383
149,751
153,253
154,549
156,086
160,644
41
42
63,205
29,831
77,861
40,149
95,483
52,243
96,801
52,586
96,753
52,998
98,799
54,454
99,751
54,798
100,153
55,933
104,150
56,494
62,561
42,337
20,224
84,348
57,539
26,809
73,513
47,933
25,580
105,963
70,926
35,037
86,137
55,304
30,833
134,327
87,954
46,373
85,984
55,313
30,671
135,907
89,717
46,130
85,651
54,912
30,739
136,441
89,485
46,956
86,101
55,118
30,983
138,810
91,042
47,768
87,089
55,740
31,349
140,014
92,012
48,002
87,765
55,952
31,813
141,635
97,189
49,248
90,912
58,432
32,480
148,283
96,137
52,146
Federal
State
43 Loans outstanding ..
44
Federal
45
State
46 Savings
47
Federal
48
State
Life insurance companies
49 Assets
50
51
52
53
54
55
56
57
58
59
60
Securities
Government . . . . .
United States'..
State ami local .
Foreign
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
722,979
825,901
937,551
948,665
961,937
978,455
978,455
985,942
995,576
1,005,592
63,899
42,204
8,713
12,982
359,333
295,998
63,335
156,699
25,767
54,505
63,776
75,230
51,700
9,708
13,822
423,712
346,216
77,496
171,797
28,822
54,369
71,971
84,640
59,033
11,659
13,948
492,807
401,943
90,864
193,842
31,615
54,055
80,592
84,923
59,596
11,245
14,082
504,582
408,788
95,794
194,213
31,718
53,832
79,397
88,003
62,724
11,315
13,964
514,328
415,004
99,324
194,935
32,003
53,806
78,842
90,337
65,661
10,860
13,816
519,766
417,933
101,833
195,743
31,834
53,652
82,105
89,711
64,621
11,068
14,022
522,097
420,474
101,623
197,315
32,011
53,572
83,749
89,554
64,201
11,208
14,145
528,789
425,788
103,001
198,760
32,149
53,468
83,222
87,279
61,405
11,485
14,389
537,507
432,095
105,412
200,382
32,357
53,378
84,390
88,199
62,461
11,277
14,461
555,423
448,146
107,277
201,297
32,699
53,338
85,420
1. Holdings of stock of the Federal Home Loan Banks are in "other assets."
2. Includes net undistributed income accrued by most associations.
3. Excludes checking, club, and school accounts.
4. Data include all federally insured credit unions, both federal and state
chartered, serving natural persons.
5. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
6. 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.
FSLlC-insured federal savings banks: Estimates by the FHLBB for federal
savings banks insured by the FSLIC and based on monthly reports of federally
insured institutions.
89,924
64,150
11,190
14,584
551,701
442,604
109,097
202,241
32,992
53,330
86,83<y
89,408
63,352
11,087
14,969
558,787
451,453
107,334
204,264
33,048
53,422
87,991
n.a.
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 1988
FEDERAL FISCAL A N D FINANCING
OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
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
10
11
12
Source of financing (total)
Borrowing from the public
Operating cash (decrease, or increase
o t h e r
2
! 1 1 1 ! ! ! ! ! ! ! ! 1
Fiscal
year
1985
Fiscal
year
1986
Fiscal
year
1987
1987
July
Aug.
60,213
43,511
16,703
81,940
65,071
16,869
-21,727
-21,561
-166
Sept.
Oct.
Nov.
62,354
45,992
16,362
93,095
76,910
16,185
-30,741
-30,918
176
56,987
40,630
13,357
82,756
65,986
16,770
-25,769
-25,356
-414
769,091
568,862
200,228
990,231
806,733
183,498
-221,140
-237,871
16,731
854,143
640,741
213,402
1,002,147
808,315
193,832
-148,005
-167,575
19,570
64,223
47,880
16,343
86,491
70,806
15,685
-22,268
-22,926
658
197,269
236,187
150,070
-3,103
33,060
-8,060
27,282
23,603
13,367
1,630
-14,324
-723
-5,052
2,986
20,655
4,716
-3,219
-8,115
-13,800
6,590
-1,879
5,338
17,164
-14,998
17,060
4,174
31,384
7,514
23,870
36,436
9,120
27,316
19,417
5,365
14,052
22,635
3,764
18,872
36,436
9,120
27,316
38,315
8,898
29,416
21,151
3,595
17,556
734,057
547,886
186,171
946,316
769,509
176,807
-212,260
-221,623
9,363
92,410
73,755
18,656
77,140
60,497
16,643
15,270
13,257
2,013
MEMO
13 Treasury operating balance (level, end of
period)
14 Federal Reserve Banks
15 Tax and loan accounts
12,886
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 SDRs; reserve position on the U.S. quota in the IMF; loans to
international monetary fund; other cash and monetary assets; 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 Budget of the U.S. Government.
Federal Finance A3 3
1.39
U.S. BUDGET RECEIPTS A N D OUTLAYS
Millions of dollars
Calendar year
Source or type
Fiscal
year
1986
Fiscal
year
1987
1987
1986
1987
HI
H2
HI
H2
Oct.
Nov.
Dec.
RECEIPTS
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 taxes and
contributions
12 Unemployment insurance
13 Other net receipts 3
769,091
854,143
394,345
387,524
447,282
421,712
62,354
,56,987
85,525
348,959
314,803
36
105,994
71,873
392,557
322,463
33
142,957
72,8%
169,444
153,919
31
78,981
63,488
183,156
164,071
4
27,733
8,652
205,157
156,760
30
112,421
64,052
192,575
170,203
4
31,223
8,853
32,429
30,122
1
3,563
1,256
25,039
24,888
0
1,664
1,512
36,537
34,020
0
3,309
793
80,442
17,298
102,859
18,933
41,946
9,557
42,108
8,230
52,396
10,881
52,821
7,119
3,633
1,778
2,558
891
18,633
884
283,901
303,318
156,714
134,006
163,519
143,755
22,177
23,756
23,361
255,062
273,185
139,706
122,246
146,6%
130,388
20,797
20,731
22,735
11,840
24,098
4,742
13,987
25,418
4,715
10,581
14,674
2,333
1,338
9,328
2,429
12,020
14,514
2,310
1,889
10,977
2,390
0
950
430
144
2,661
364
0
170
457
32,919
13,327
6,958
19,884
32,510
15,032
7,493
19,307
15,944
6,369
3,487
10,002
15,947
7,282
3,649
9,605
15,845
7,129
3,818
10,299
17,680
7,993
3,610
10,399
2,574
1,317
608
1,392
2,854
1,247
617
1,807
3,838
1,361
540
2,141
18 All types
990,231
1,002,147
486,058
505,448
502,983
530,763
93,095
82,756
109,401
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology
Energy
Natural resources and environment
Agriculture
273,375
14,152
8,976
4,735
13,639
31,449
282,016
11,761
9,188
4,176
13,225
26,493
135,367
5,384
12,519
2,484
6,245
14,482
138,544
8,876
4,594
2,735
7,141
16,160
142,886
4,374
4,324
2,335
6,175
11,824
147,009
4,589
5,441
1,531
7,452
13,775
25,928
1,004
1,118
499
1,336
5,177
21,366
65
867
316
1,121
3,139
29,070
517
937
316
1,371
1,278
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services
4,823
28,117
7,233
5,235
26,228
5,334
860
12,658
3,169
3,647
14,745
3,494
4,893
12,113
3,108
1,402
14,096
2,358
1,625
2,306
742
585
2,304
450
-688
2,287
701
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts
OUTLAYS
30,585
28,721
14,712
15,287
14,182
14,590
2,455
3,045
2,301
29 Health
30 Social security and medicare
31 Income security
35,935
268,921
119,7%
39,%8
282,473
123,499
17,872
135,214
60,786
18,795
138,299
60,628
20,318
142,864
62,248
20,750
158,469
61,449
3,613
23,979
10,241
3,744
23,153
9,595
3,176
40,992
11,485
32
33
34
35
36
37
26,356
6,603
6,104
6,431
136,008
-33,007
26,801
7,507
6,005
1,621
138,519
-36,622
12,193
3,352
3,566
2,179
68,054
-17,193
14,447
3,360
2,786
2,886
65,816
-17,376
12,264
3,626
3,344
337
70,110
-18,104
14,974
4,251
3,617
1,175
71,882
-18,149
3,645
674
-231
241
11,431
-2,688
899
649
1,085
148
13,215
-2,990
3,773
774
1,577
129
12,177
-2,770
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.
SOURCES. U.S. Department of the Treasury, "Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government," and the U.S. Office of Management and Budget, Budget of the U.S. Government, Fiscal Year 1988.
A30
1.40
Domestic Financial Statistics • March 1988
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1985
1987
1986
Item
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
1 Federal debt outstanding
1,827.5
1,950.3
1,991.1
2,063.6
2,129.5
2,218.9
2,250.7
2,313.1
2,354.3
2 Public debt securities
3 Held by public
4 Held by agencies
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
2,214.8
1,811.7
403.1
2,246.7
1,839.3
407.5
2,309.3
1,871.1
438.1
2,350.3
1,893.1
457.2
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
4.0
3.0
1.1
4.0
2.9
1.1
5 Agency securities
6
Held by public
7 Held by agencies
3.8
2.8.
1.0
4.0
3.0
1.0
1,823.8
1,932.4
1,973.3
2,060.0
2,111.0
2,200.5
2,232.4
2,295.0
2,336.0
9 Public debt securities
10 Other debt 1
1,822.5
1.3
1,931.1
1.3
1,972.0
1.3
2,058.7
1.3
2,109.7
1.3
2,199.3
1.3
2,231.1
1.3
2,293.7
1.3
2,334.7
1.3
11 MEMO: Statutory debt limit
1,823.8
2,078.7
2,078.7
2,078.7
2,111.0
2,300.0
2,300.0
2,320.0
2,800.0
8 Debt subject to statutory limit
1. Includes guaranteed debt of Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District
of Columbia stadium bonds.
1.41
GROSS PUBLIC DEBT OF U.S. TREASURY
SOURCES. Treasury Bulletin and Monthly Statement of the Public Debt of the
United States.
Types and Ownership
Billions of dollars, end of period
1986
Type and holder
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
By type
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable 1
State and local government series
Foreign issues
Government
Public
Savings bonds and notes
Government account series
14 Non-interest-bearing debt
15
16
17
18
19
20
21
22
23
24
25
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 Treasurys
Individuals
Savings bonds
Other securities
Foreign and international5
Other miscellaneous investors 6
1983
1985
1987
1986
Q4
Q1
Q2
Q3
1,410.7
1,663.0
1,945.9
2,214.8
2,214.8
2,246.7
2,309.3
2,350.3
1,400.9
1,050.9
343.8
573.4
133.7
350.0
36.7
10.4
10.4
1,660.6
1,943.4
1,437.7
399.9
812.5
211.1
505.7
87.5
7.5
7.5
2,212.0
2,244.0
1,635.7
406.2
955.3
259.3
608.3
118.5
4.9
4.9
93.0
391.4
2,306.7
1,659.0
391.0
984.4
268.6
647.7
125.4
5.1
5.1
.0
95.2
421.6
2,347.8
1.676.0
378.3
1.005.1
277.6
671.8
129.0
4.4
4.4
.0
97.0
440.7
2.8
2.7
2.6
2.5
403.1
211.3
407.5
196.4
1,641.4
232.0
438.1
212.3
1,657.7
237.1
20.6
n.a.
78.7
n.a.
.0
.0
70.7
231.9
286.2
73.1
78.1
332.2
2,212.0
1,619.0
426.7
927.5
249.8
593.1
110.5
4.7
4.7
.0
90.6
386.9
9.8
2.3
2.5
2.8
236.3
151.9
1,022.6
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
95.8
59.0
n.a.
71.5
61.9
166.3
259.8
74.5
69.3
192.9
360.6
79.8
75.0
212.5
n.a.
188.8
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. Treasury agencies and trust funds.
4. Data for Federal Reserve Banks and U.S. Treasury agencies and trust funds
are actual holdings; data for other groups are Treasury estimates.
1984
1,247.4
374.4
705.1
167.9
413.2
44.4
9.1
9.1
.0
403.1
211.3
1,619.0
426.7
927.5
249.8
593.1
110.5
4.7
4.7
.0
90.6
386.9
1,602.0
1,602.0
232.1
28.6
106.9
68.8
n.a.
232.1
28.6
106.9
68.8
n.a.
92.3
70.5
251.5
n.a.
92.3
70.5
251.5
n.a.
.0
18.8
n.a.
73.4
n.a.
94.7
68.3
250.7
96.8
68.6
270.1
n.a.
457.2
211.9
1,682.6
250.5
n.a.
n.a.
80.2
n.a.
98.5
70.4
268.4
n.a.
5. Consists of investments of foreign and international accounts. Excludes
non-interest-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. Treasury deposit accounts, and federally-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
A3 3
Transactions 1
U.S. GOVERNMENT SECURITIES DEALERS
Par value; averages of daily figures, in millions of dollars
1987
Item
1985
1986
1987
1987
Oct.
Nov.
Dec.
Nov. 25
Dec. 2
Dec. 9
Dec. 16
Dec. 23
Dec. 30
2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Immediate delivery
U.S. Treasury securities
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
By type of customer
U.S. government securities
dealers
U.S. government securities
brokers
All others'
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures contracts
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions
U.S. Treasury securities
Federal agency securities
75,331
95,445
109,809
138,937
95,689
74,468
86,651
83,095
80,831
82,626
79,999
52,945
32,900
1,811
18,361
12,703
9,556
34,247
2,115
24,667
20,456
13,961
37,853
3,264
27,836
23,941
16,915
41,000
4,405
41,107
34,061
18,365
30,259
4,070
28,364
19,153
13,844
24,987
2,941
20,559
15,699
10,283
29,467
4,199
25,372
18,208
9,405
28,953
4,082
21,649
17,383
11,027
29,637
3,044
21,484
16,395
10,272
24,987
2,941
20,950
19,673
14,075
25,355
2,405
23,682
17,311
11,246
19,134
3,002
16,469
9,094
5,247
3,336
3,670
2,920
2,750
1,894
2,053
2,308
2,070
1,792
2,052
2,752
1,732
36,222
35,773
11,640
4,016
3,242
12,717
49,558
42,218
16,748
4,355
3,272
16,660
61,459
45,429
18,872
4,106
2,964
17,102
82,101
54,085
18,586
4,927
3,362
19,394
55,448
38,346
17,919
3,392
2,727
16,007
43,045
29,369
14,276
3,010
2,245
15,138
47,509
36,834
18,085
3,329
2,997
15,776
47,290
33,735
15,820
3,475
2,409
15,373
49,031
30,008
15,952
3,130
2,664
16,216
48,978
31,595
16,123
2,945
2,185
16,732
45,440
31,807
12,032
2,857
1,935
14,594
27,557
23,654
11,426
2,798
1,752
11,145
5,561
6,085
252
3,311
7,175
16
3,224
8,954
5
4,056
11,462
8
2,774
8,489
2
2,335
. 7,335
5
3,226
7,719
0
3,570
8,427
0
2,652
8,357
1
3,363
9,157
1
1,451
7,459
1,670
3,910
25
1,283
3,857
1,876
7,831
2,061
9,824
2,653
7,676
2,167
7,191
1,097
5,704
1,450
5,885
1,262
4,023
934
6,031
1,183
8,136
1,630
6,268
359
3,364
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. Treasury
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 Treasury securities (Treasury bills, notes, and
bonds) or after 30 days for mortgage-backed agency issues.
A32
1.43
DomesticNonfinancialStatistics • March 1988
U.S. GOVERNMENT SECURITIES DEALERS
Positions and Financing 1
Averages of daily figures, in millions of dollars
1987
Item
1985
1986
1987
1987
Oct.
Nov.
Dec.
Dec. 2
Dec. 9
Dec. 16
Dec. 23
Dec. 30
Positions
Net immediate2
U.S. Treasury securities
7,391
12,912
-6,258
-15,440
—6,865r
-8,582
-5,291
-7,220
-11,341
-9,863
-7,155
2
3
4
5
6
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
10,075
1,050
5,154
-6,202
-2,686
12,761
3,706
9,146
-9,505
-3,197
4,325
1,556
592
-6,560
-6,172
7,260
-620
-4,938
-8,724
-8,418
5,702
-565
1,750'
-6,214
-7,538
2,580
-556
746
-3,547
-7,805
4,287
-1,022
711
-2,773
-6,493
3,146
-310
55
-2,748
-7,363
1,555
83
-1,439
-3,374
-8,166
2,826
-441
-877
-3,608
-7,762
1,719
-1,231
5,353
-4,635
-8,361
7
8
9
10
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures positions
Treasury bills
Treasury coupons
Federal agency securities
Forward positions
U.S. Treasury securities
Federal agency securities
22,860
9,192
4,586
5,570
32,984
10,485
5,526
8,089
31,900
8,187
3,661
7,492
34,002
7,537
2,879
7,426
29,108
6,821
3,151
7,729
25,308
6,799
2,399
7,904
27,026
6,089
2,649
7,166
28,341
6,056
2,546
7,586
26,485
6,460
1,984
7,514
23,466
7,094
2,226
7,755
22,173
7,782
2,821
8,931
-7,322
4,465
-722
-18,059
3,473
-153
-3,372
5,989
-95
2,492
8,809
-100
1,158
9,170
-90
448
8,184
-84
1,837
8,574
-88
1,627
8,260
-88
829
9,351
-93
141
7,134
-97
-1,367
7,738
-72
-911
-9,420
-2,144
-11,840
-1,190
-18,817
229
-22,780
145
-18,489
-1,639
-15,033
-2,202
-16,176
-1,851
-17,173
-2,225
-16,088
-1,729
-13,583
-313
-12,499
1
11
12
13
14
15
Financing3
Reverse repurchase agreements 4
Overnight and continuing
Term
Repurchase agreements
18 Overnight and continuing
19 Term
16
17
68,035
80,509
98,954
108,693
n.a.
n.a.
131,194
164,441
117,696
164,332
n.a.
n.a.
123,520
157,236
115,152
155,434
118,765
149,986
104,065
152,707
121,267
130,567
101,410
70,076
141,735
102,640
n.a.
n.a.
177,013
123,372
152,504
138,724
n.a.
n.a.
169,401
121,414
155,276
120,004
160,361
115,304
139,139
127,296
149,481
108,767
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. Treasury
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. Treasury 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
A3 3
Debt Outstanding
Millions of dollars, end of period
1987
Agency
1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department 1
4 Export-Import Bank 2,3
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
16 Financing Corporation 9
1984
1985
1986
June
July
Aug.
Sept.
Oct.
271,220
293,905
307,361
310,854
313,859
316,940
320,789
328,990
35,145
142
15,882
133
36,390
71
15,678
115
36,958
33
14,211
138
36,%8
20
13,416
169
36,%3
18
13,416
175
37,845
16
13,416
174
37,177
15
12,650
178
37,207
15
12,470
182
2,165
1,337
15,435
51
2,165
1,940
16,347
74
2,165
3,104
17,222
85
1,965
3,718
17,595
85
1,965
3,718
17,586
85
1,965
4,603
17,586
85
1,965
4,603
17,766
0
1,965
4,603
17,972
0
237,012
65,085
10,270
83,720
72,192
5,745
n.a.
257,515
74,447
11,926
93,8%
68,851
8,395
n.a.
270,553
88,752
13,589
93,563
62,478
12,171
n.a.
273,886
99,680
12,097
91,039
56,648
14,422
n.a.
276,8%
100,976
12,309
91,637
55,715
16,259
n.a.
279,095
102,422
14,150
91,568
55,408
15,547
n.a.
283,612
104,380
14,949
92,618
55,276
16,389
n.a.
291,783
108,108
16,703
94,298
55,854
16,220
600
297,375
111,185
17,762
95,096
55,629
16,503
1,200
145,217
153,373
157,510
157,506
157,302
158,117
157,252
156,919
n.a.
15,852
1,087
5,000
13,710
51
15,670
1,690
5,000
14,622
74
14,205
2,854
4,970
15,797
85
13,410
3,468
4,970
16,215
85
13,410
3,468
4,970
16,206
85
13,410
4,353
4,970
16,206
85
12,644
4,353
4,970
16,386
0
12,464
4,353
4,940
16,592
0
->
58,971
20,693
29,853
64,234
20,654
31,429
65,374
21,680
32,545
65,199
21,539
32,620
65,049
21,529
32,585
65,069
21,503
32,521
65,009
21,197
32,693
64,934
21,226
32,410
MEMO
17 Federal Financing Bank debt10
18
19
20
21
22
Lending to federal and
federally sponsored agencies
Export-Import Bank 3
Postal Service
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association 6
Other Lending11
7.3 Farmers Home Administration
74 Rural Electrification Administration
25
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.
Nov.
n.a.
n.a.
8. Before late 1981, the Association obtained financing through the Federal
Financing Bank (FFB).
9. The Financing Corporation, established in August 1987 to recapitalize the
Federal Savings and Loan Insurance Corporation, undertook its first borrowing in
October 1987.
10. 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.
11. 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 1988
NEW SECURITY ISSUES
Tax-Exempt State and Local Governments
Millions of dollars
1987
Type of issue or issuer,
or use
1984
1 All issues, new and refunding1
1985
1986
May
June
July
Aug.
Sept.
Oct.
Nov/
Dec.
106,641
214,189
147,011
6,037
10,718
6,967
6,500
5,510
6,257
7,758
6,812
Type of issue
2 General obligation
3 Revenue
26,485
80,156
52,622
161,567
46,346
100,664
2,872
3,165
3,329
7,389
2,238
4,729
1,975
4,525
1,755
3,755
1,127
5,130
2,449
5,309
1,754
5,058
Type of issuer
4 State
5 Special district and statutory authority
6 Municipalities, counties, and townships
9,129
63,550
33,962
13,004
134,363
66,822
14,474
89,997
42,541
1,002
3,019
2,017
1,138
6,453
3,127
834
3,951
2,182
398
4,508
1,594
535
3,712
1,263
385
4,668
1,204
431
4,103
2,579
538
4,335
1,939
7 Issues for new capital, total
94,050
156,050
83,490
3,848
7,552
4,478
5,084
4,340
4,095
6,628
4,850
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
7,553
7,552
17,844
29,928
15,415
15,758
12,307
7,246
12,280
11,353
8,502
31,801
12,307
7,246
12,280
11,353
8,502
31,801
789
194
518
454
204
1,689
1,554
705
1,313
1,082
498
2,399
773
647
823
465
469
1,301
869
226
424
903
1,630
1,033
653
311
491
647
412
1,826
480
168
590
896
683
1,278
1,006
329
1,042
1,784
229
2,238
588
441
290
878
1,095
1,558
8
9
10
11
12
13
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts beginning 1986.
1.46
NEW SECURITY ISSUES
SOURCES. Securities Data/Bond Buyer Municipal Data Base beginning 1986.
Public Securities Association for earlier data.
U.S. Corporations
Millions of dollars
Type of issue or issuer,
or use
1987
1984
1985
1986
Apr.
May
June
July
Aug.
Sept.
Oct/
Nov.
1 All issues'
155,741
239,015
423,726
23,735
19,969
28,446
27,411
21,888
29,363r
20,657
13,700
2 Bonds2
133,113
203,500
355,293
19,518
13,431
22,094
22,071
17,685
23,705r
17,578
13,005
74,175
36,324
22,613
119,559
46,195
37,781
231,936
80,761
42,5%
17,634
n.a.
1,884
11,394
n.a.
2,037
20,564
n.a.
1,530
19,045
n.a.
3,026
14,852
n.a.
2,833
22,045'
n.a.
1,660
16,082
n.a.
1,4%
12,272
n.a.
733
32,804
14,792
4,784
10,9%
3,400
66,336
63,973
17,066
6,020
13,649
10,832
91,958
91,548
40,124
9,971
31,426
16,659
165,564
2,734
1,683
168
1,370
175
13,389
5,035
754
21
572
138
6,912
4,104
2,061
0
2,091
205
13,632
5,552
1,037
343
1,654
119
13,366
3,343
1,281
2%
1,533
856
10,377
3,506
1,479
25
1,702
930
16,063r
2,699
1,165
263
997
1,384
11,071
1,224
483
0
893
270
10,134
12 Stocks3
22,628
35,515
68,433
4,217
6,538
6,352
5,340
4,203
5,658
3,079
695
Type
13 Preferred
14 Common
4,118
18,510
6,505
29,010
11,514
50,316
6,603
526
3,691
n.a.
1,170
5,368
n.a.
1,202
5,150
n.a.
1,157
4,183
n.a.
906
3,297
n.a.
1,112
4,546
n.a.
236
2,843
n.a.
162
533
4,054
6,277
589
1,624
419
9,665
5,700
9,149
1,544
1,966
978
16,178
15,027
10,617
2,427
4,020
1,825
34,517
653
2,203
230
297
18
816
1,066
1,516
3
374
200
3,379
1,438
1,353
492
329
199
2,541
1,046
879
379
472
294
2,270
370
9%
0
85
277
2,475
858
807
11
529
75
3,378
703
656
40
75
107
1,498
237
86
149
25
1
197
Type of offering
3 Public, domestic
4 Private placement, domestic
5. Sold abroad
6
7
8
9
10
11
16
17
18
19
20
21
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, are principal amount or number of units multiplied by offering price.
Excludes secondary offerings, employee stock plans, investment companies other
than closed-end, intracorporate transactions, equities sold abroad, and Yankee
bonds. Stock data include ownership securities issued by limited partnerships.
2. Monthly data include only public offerings.
3. Data are not available on a monthly basis.
SOURCES. IDD Information Services, Inc., U.S. Securities and Exchange
Commission and the Board of Governors of the Federal Reserve System.
Securities Market and Corporate Finance
1.47
O P E N - E N D INVESTMENT COMPANIES
A35
Net Sales and Asset Position
Millions of dollars
1987
Item
1985
1986
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
INVESTMENT COMPANIES 1
1 Sales of own shares2
222,670
411,751
42,857
28,295
28,637
27,970
26,455
24,834
25,990
21,927
2 Redemptions of own shares 3
3 Net sales
132,440
90,230
239,394
172,357
37,448
5,409
23,453
4,842
23,693
4,944
22,807
5,763
22,561
3,894
28,323
-3,489
34,597
-8,607
20,400
1,507
4 Assets4
251,695
424,156
502,487
500,634
516,866
531,022
539,171
521,007
456,422
446,106
39,158
461,476
41,467
475,099
41,587
489,435
40,802
498,369
42,397
478,610
40,929
415,493
41,428
404,678
20,607
231,088
6 Other
30,716
393,440
43,009
459,478
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.
1985
Account
1 Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
2
3
4
5
6
7 Inventory valuation
8 Capital consumption adjustment
1984
1987
1986
1986
Q4
Q1
Q2
Q3
Q4
Ql
Q2
Q3
266.9
239.9
93.9
146.1
79.0
67.0
277.6
224.8
96.7
128.1
81.3
46.8
284.4
231.9
105.0
126.8
86.8
40.0
277.8
233.5
99.1
134.4
81.7
52.7
288.0
218.9
98.1
120.9
84.3
36.6
282.3
224.4
102.1
122.3
86.6
35.7
286.4
236.3
106.1
130.2
87.7
42.5
281.1
247.9
113.9
134.0
88.6
45.4
294.0
257.0
128.0
129.0
90.3
38.7
296.8
268.7
134.2
134.5
92.4
42.1
314.9
284.9
143.0
141.9
95.2
46.7
-5.8
32.8
-.8
53.5
6.5
46.0
-9.8
54.2
17.8
51.3
11.3
46.7
6.0
44.0
-8.9
42.1
-11.3
48.2
-20.0
48.0
-17.6
47.7
SOURCE. Survey of Current Business (Department of Commerce).
1985
A36
1.49
DomesticNonfinancialStatistics • March 1988
Assets and Liabilities 1
NONFINANCIAL CORPORATIONS
Billions of dollars, except for ratio
1985
Account
1980
1981
1982
1983
1986
1984
QI
Q2
Q3
Q4
QL
1
Current assets
1,328.3
1,419.6
1,437.1
1,565.9
1,703.0
1,722.7
1,734.6
1,763.0
1,784.6
1,795.7
2
3
4
5
6
Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other
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
9
Notes and accounts payable
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 ratio2
1.492
1.462
1.459
1.487
1.464
1.467
1.466
1.455
1.447
1.469
1. For a description of this series, see "Working Capital of Nonfinancial
Corporations" in the July 1978 BULLETIN, pp. 533-37. Data are not currently
available after 1986:1.
1.50
2. Ratio of total current assets to total current liabilities.
SOURCE. Federal Trade Commission and Bureau of the Census,
TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment A
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1986
Industry
1
Total nonfarm business
2
3
Manufacturing
Durable goods industries
Nondurable goods industries
Nonmanufacturing
Mining
Transportation
•»
Railroad
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Commercial and other
4
1985
1986
1988
Q2
Q3
Q4
Ql
Q2
Q3
Q4
1
Ql 2
387.13
379.47
390.57
376.21
375.50
386.09
374.23
377.65
393.13
417.25
427.97
73.27
80.21
69.14
73.56
71.85
76.01
68.56
73.62
69.42
70.01
69.87
74.20
70.47
70.18
68.76
72.03
71.78
75.78
76.40
86.05
78.41
86.27
15.88
11.22
11.18
11.29
10.14
10.31
10.31
11.02
11.64
11.74
11.86
7.08
4.79
6.15
6.66
6.26
5.89
6.15
6.53
6.42
6.70
5.87
5.83
7.02
5.78
6.01
6.41
6.84
6.25
5.55
7.46
5.97
5.77
5.72
6.19
6.21
5.91
7.05
7.08
7.03
6.48
7.66
8.35
6.92
36.11
12.71
150.94
33.91
12.47
160.38
31.65
12.88
167.89
33.77
12.66
157.91
33.81
12.00
161.31
33.78
12.34
166.08
30.85
12.75
160.70
31.13
12.35
164.69
31.31
13.58
169.87
33.32
12.84
176.29
31.65
13.72
183.15
ATrade and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1. Anticipated by business.
1987
1987 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 Markets and Corporate Finance
1.51
DOMESTIC FINANCE COMPANIES
A37
Assets and Liabilities
Billions of dollars, end of period
1987
1986
1983
Account
1984
1985
Q1
Q2
Q3
Q4
Q1
Q2
Q3
ASSETS
Accounts receivable, gross
Consumer
Business
Real estate
Total
83.3
113.4
20.5
217.3
89.9
137.8
23.8
251.5
113.4
158.3
28.9
300.6
117.2
165.9
29.9
312.9
125.1
167.7
30.8
323.6
137.1
161.0
32.1
330.2
136.5
174.8
33.7
345.0
133.9
182.8
35.1
351.8
138.0
189.0
36.9
363.9
144.4
188.7
38.3
371.5
Less:
5 Reserves for unearned income
6 Reserves for losses
30.3
3.7
33.8
4.2
39.2
4.9
40.0
5.0
40.7
5.1
42.4
5.4
41.4
5.8
40.4
5.9
41.2
6.2
42.8
6.6
7 Accounts receivable, net
8 All other
183.2
34.4
213.5
35.7
256.5
45.3
268.0
48.8
277.8
48.8
282.4
59.9
297.8
57.9
305.5
59.0
316.5
57.7
322.1
65.0
9 Total assets
217.6
249.2
301.9
316.8
326.6
342.3
355.6
364.5
374.2
387.1
18.3
60.5
20.0
73.1
20.6
99.2
19.0
104.3
19.2
108.4
20.2
112.8
22.2
117.8
17.3
119.1
17.2
120.4
16.2
123.5
11.1
67.7
31.2
28.9
12.9
77.2
34.5
31.5
12.5
93.1
40.9
35.7
13.4
101.0
42.3
36.7
15.4
105.2
40.1
38.4
16.0
109.8
44.1
39.4
17.2
115.6
43.4
39.4
21.6
118.4
46.3
41.8
24.4
121.5
48.3
42.3
26.9
128.0
48.7
43.8
217.6
249.2
301.9
316.8
326.6
342.3
355.6
364.5
374.2
387.1
1
2
3
4
LIABILITIES
10 Bank loans
11 Commercial paper
Debt
12 Other short-term
13 Long-term
14 All other liabilities
15 Capital, surplus, and undivided profits
16 Total liabilities and capital
NOTE. Components may not add to totals because of rounding.
1.52
DOMESTIC FINANCE COMPANIES
Business Credit
Millions of dollars, seasonally adjusted except as noted
Type
Accounts
receivable
outstanding
Nov. 30
19871
Changes in accounts
receivable
Extensions
Repayments
1987
1987
1987
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
Nov.
Sept.
Oct.
Nov.
Sept.
Oct.
Nov.
197,881
1,754
4,337
1,250
30,294
30,929
30,336
28,540
26,592
29,087
33,481
24,554
-16
529
735
258
447
-25
1,365
1,688
1,159
1,526
1,283
1,395
1,382
1,158
424
1,268
836
1,420
29,638
5,611
7,904
-1,029
-1
223
3,485
249
-1,455
261
61
121
10,810
710
3,251
12,557
886
2,983
12,662
623
3,043
11,839
711
3,028
9,072
637
4,437
12,401
562
2,921
21,065
40,815
561
422
-197
188
211
-92
1,340
952
1,117
1,245
1,117
881
779
530
1,314
1,057
906
973
18,632
16,181
248
817
704
369
331
-67
8,488
1,690
8,241
1,215
8,005
1,326
8,240
873
7,537
846
7,674
1,393
These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.
Oct.
1. Not seasonally adjusted,
A38
1.53
DomesticNonfinancialStatistics • March 1988
MORTGAGE
MARKETS
Millions of dollars; exceptions noted.
1987
Item
1985
1986
1987
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)
Contract rate (percent per year)
Yield (percent per year)
7 FHLBB series
8 HUD series4
104.1
77.4
77.1
26.9
2.53
11.12
118.1
86.2
75.2
26.6
2.48
9.82
136.9
100.4
75.2
27.8
2.26
8.94
131.8
97.5
75.9
28.0
2.40
9.05
134.6
99.4
75.4
27.9
2.42
9.01
141.2
102.6
75.0
27.8
2.19
9.01
140.2
100.8
74.6
27.3
2.08
9.03
145.3
106.1
75.0
28.3
2.34
8.86
100.2'r
75.4
28.3'
2.33r
8.92r
145.7
106.4
74.9
28.1
2.25
8.80
11.58
12.28
10.25
10.07
9.32
n.a.
9.45
10.29
9.41
10.22
9.38
10.37
9.37
10.86
9.25
10.87
9.3C
n.a.
9.17
n.a.
12.24
11.61
9.91
9.30
n.a.
9.42
10.33
9.50
10.38
9.59
10.55
9.77
10.71
10.40
10.90
10.53
n.a.
9.96
n.a.
10.18
SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (HUD series)5
10 GNMA securities6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional
94,574
34,244
60,331
98,048
29,683
68,365
n.a.
n.a.
n.a.
94,064
21,892
72,173
94,154
21,730
72,424
94,600
21,555
73,045
94,884
21,620
73,264
95,097
21,481
73,617
95,411
21,510
73,902
n.a.
n.a.
n.a.
Mortgage transactions (during period)
14 Purchases
21,510
30,826
n.a.
1,690
1,569
1,613
1,743
1,278
1,297
n.a.
Mortgage commitments1
15 Contracted (during period)
16 Outstanding (end of period)
20,155
3,402
32,987
3,386
n.a.
n.a.
1,745
4,448
2,373
5,071
2,276
5,690
1,842
5,627
1,566
5,046
2,899
5,845
n.a.
n.a.
Mortgage holdings (end of period)8
17 Total
18 FHA/VA
19 Conventional
12,399
841
11,559
13,517
746
12,771
n.a.
n.a.
n.a.
12,598
694'
11,903
12,834
684
12,150
12,924
679
12,245
12,940
672
12,269
12,782
666
12,115
A
Mortgage transactions (during period)
20 Purchases
21 Sales
44,012
38,905
103,474
100,236
n.a.
n.a.
7,864
7,447
7,252
6,831
5,031
4,723
4,297
4,160
3,079
3,111
n.a.
n.a.
1
1
Mortgage commitments9
22 Contracted (during period)
48,989
110,855
n.a.
7,330
5,611
4,506
3,507
3,011
t
T
FEDERAL H O M E L O A N MORTGAGE CORPORATION
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Home Loan Bank
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages; 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.
T
1
A
T
1
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.
7. Includes some multifamily and nonprofit hospital loan commitments in
addition to 1- to 4-family loan commitments accepted in FNMA's free market
auction system, and through the FNMA-GNMA tandem plans.
8. Includes participation as well as whole loans.
9. Includes conventional and government-underwritten loans. FHLMC's mortgage commitments and mortgage transactions include activity under mortgage/
securities swap programs, while the corresponding data for FNMA exclude swap
activity.
Real Estate
1.54
A39
MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
1987
1986
Type of holder, and type of property
1984
1985
1986
Q3
Q4
Ql
Q2
Q3
1 All holders
2,035,238
2,269,173
2,566,734
2,472,285
2,566,734
2,662,331
2,754,471
2,827,622
2 1- to 4-family
3 Multifamily
4 Commercial
5
1,318,545
185,604
419,444
111,645
1,467,409
214,045
482,029
105,690
1,666,421
246,984
556,569
96,760
1,607,857
237,754
527,163
99,511
1,666,421
246,984
556,569
96,760
1,712,109
257,286
599,384
93,552
1,778,306
266,383
617,627
92,155
1,830,432
272,757
633,167
91,266
1,269,702
379,498
196,163
20,264
152,894
10,177
1,390,394
429,196
213,434
23,373
181,032
11,357
1,507,289
502,534
235,814
31,173
222,799
12,748
1,464,924
474,658
228,593
28,623
204,996
12,446
1,507,289
502,534
235,814
31,173
222,799
12,748
1,560,403
519,474
243,518
29,515
233,234
13,207
1,607,771
544,381
255,672
30,496
244,385
13,828
1,646,764
563,553
264,983
30,995
253,261
14,314
709,718
528,791
75,567
104,896
464
156,699
14,120
18,938
111,175
12,466
23,787
760,499
554,301
89,739
115,771
688
171,797
12,381
19,894
127,670
11,852
28,902
777,312
558,412
97,059
121,236
605
193,842
12,827
20,952
149,111
10,952
33,601
772,175
557,938
94,227
119,406
604
185,980
12,985
20,802
140,841
11,352
32,111
777,312
558,412
97,059
121,236
605
193,842
12,827
20,952
149,111
10,952
33,601
810,099
557,234
103,791
148,274
800
195,743
12,903
20,934
151,420
10,486
35,087
826,110
569,594
105,871
149,842
803
200,382
12,745
21,663
155,611
10,363
36,898
840,251
580,605
107,629
151,213
804
204,632
12,745
21,863
159,811
10,213
38,328
158,993
2,301
585
1,716
1,276
213
119
497
447
166,928
1,473
539
934
733
183
113
159
278
203,800
889
47
842
48,421
21,625
7,608
8,446
10,742
159,505
887
48
839
457
132
57
115
153
203,800
889
47
842
48,421
21,625
7,608
8,446
10,742
199,509
687
46
641
48,203
21,390
7,710
8,463
10,640
196,514
667
45
622
48,085
21,157
7,808
8,553
10,567
191,561
654
44
610
42,978
18,111
7,903
6,592
10,372
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
5,047
2,386
2,661
97,895
90,718
7,177
39,984
2,353
37,631
11,564
10,010
1,554
4,966
2,331
2,635
97,717
90,508
7,209
42,119
2,478
39,641
13,359
11,127
2,232
5,047
2,386
2,661
97,895
90,718
7,177
39,984
2,353
37,631
11,564
10,010
1,554
5,177
2,447
2,730
95,140
88,106
7,034
37,362
2,198
35,164
12,940
11,774
1,166
5,268
2,531
2,737
94,064
87,013
7,051
35,833
2,108
33,725
12,597
11,172
1,425
5,175
2,435
2,740
94,884
87,901
6,983
34,930
2,055
32,875
12,940
11,570
1,370
44 Mortgage pools or trusts 6
45 Government National Mortgage Association
46
1- to 4-family
47
Multifamily
48 Federal Home Loan Mortgage Corporation
49
1- to 4-family
50
Multifamily
51 Federal National Mortgage Association
57,
1- to 4-family
53
Multifamily
54 Farmers Home Administration
55
1- to 4-family
56
Multifamily
57
Commercial
Farm
58
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
529,763
260,869
255,132
5,737
171,372
166,667
4,705
97,174
95,791
1,383
348
142
0
132
74
522,721
241,230
235,664
5,566
146,871
143,734
3,137
86,359
85,171
1,188
48,261
21,782
0
8,409
10,717
529,763
260,869
255,132
5,737
171,372
166,667
4,705
97,174
95,791
1,383
348
142
0
132
74
571,705
277,386
271,065
6,321
186,295
180,602
5,693
107,673
106,068
1,605
351
154
0
127
70
612,340
290,444
283,357
7,087
200,284
194,238
6,046
121,270
119,617
1,653
342
149
0
126
67
641,239
302,016
294,647
7,369
208,350
201,786
6,564
130,540
128,770
1,770
333
144
0
124
65
59 Individuals and others 7
60
1- to 4-family
61 Multifamily
67 Commercial
63
274,486
154,315
48,670
42,423
29,078
296,809
165,835
55,424
49,207
26,343
325,882
180,896
66,133
54,845
24,008
325,135
183,255
63,886
53,396
24,598
325,882
180,896
66,133
54,845
24,008
330,714
179,517
70,146
57,866
23,185
337,846
182,010
73,924
59,110
22,802
348,058
186,308
76,961
62,166
22,623
6 Selected financial institutions
7 Commercial banks 2
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
12
n
14
IS
16
17
18
19
20
21
22
Savings institutions3
1- to 4-family
Multifamily
Commercial
Farm
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
Finance companies
23 Federal and related agencies
24 Government National Mortgage Association
25
1- to 4-family
26
Multifamily
27 Farmers Home Administration
28
1- to 4-family
Multifamily
29
30
Commercial
Farm
31
32
33
34
35
36
37
38
39
40
41
47
43
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. 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.
2. Includes loans held by nondeposit trust companies but not bank trust
departments.
3. Includes savings banks and savings and loan associations. Beginning 1987:1,
data reported by FSLIC-insured institutions include loans in process and other
contra assets.
4. Assumed to be entirely 1- to 4-family loans.
5. FmHA-guaranteed securities sold to the Federal Financing Bank were
reallocated from FmHA mortgage pools to FmHA mortgage holdings in 1986:4,
because of accounting changes by the Farmers Home Administration.
6. Outstanding principal balances of mortgage pools backing securities insured
or guaranteed by the agency indicated.
7. 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.
A40
1.55
DomesticNonfinancialStatistics • March 1988
CONSUMER INSTALLMENT CREDIT 1 4 Total Outstanding, and Net Change, seasonally adjusted
Millions of dollars
1987
Holder, and type of credit
1985
1986
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct/
Amounts outstanding (end of period)
1 Total
522,805
577,784
579,913
583,595
583,276
587,821
591,175
596,182
602,607
605,488
607,707
By major holder
Commercial banks . . . .
Finance companies . . .
Credit unions
Retailers
Savings institutions . . .
Gasoline companies . . .
242,084
113,070
72,119
38,864
52,433
4,235
261,604
136,494
77,857
40,586
58,037
3,205
261,933
136,050
78,569
40,469
59,488
3,405
263,433
137,091
79,255
40,467
59,826
3,522
263,463
136,398
79,476
40,318
60,045
3,576
264,396
138,038
80,585
40,287
60,983
3,532
265,085
138,745
81,492
40,364
61,910
3,580
265,893
140,689
82,486
40,391
63,080
3,643
269,155
142,648
83,340
40,482
63,279
3,703
270,836
143,118
83,639
40,678
63,525
3,691
272,240
142,767
84,343
40,559
64,198
3,600
By major type of credit
8 Automobile
9
Commercial banks ..
10 Credit unions
11 Finance companies..
12 Savings institutions .
208,057
93,003
35,635
70,091
9,328
245,055
100,709
39,029
93,274
12,043
246,290
101,528
39,386
93,032
12,344
247,663
101,781
39,730
93,738
12,414
247,578
102,189
39,841
93,089
12,459
250,130
102,810
40,396
94,270
12,654
250,980
102,829
40,851
94,455
12,846
254,013
103,382
41,349
96,193
13,089
257,470
104,662
41,777
97,900
13,130
258,710
105,382
41,927
98,219
13,182
258,907
105,910
42,280
97,395
13,321
13 Revolving
14 Commercial banks ..
15 Retailers
16 Gasoline companies.
17 Savings institutions .
18 Credit unions
122,021
75,866
34,695
4,235
5,705
1,520
134,938
85,652
36,240
3,205
7,713
2,128
135,166
85,567
36,141
3,405
7,906
2,147
136,706
86,929
36,139
3,522
7,951
2,166
136,869
87,133
36,009
3,576
7,980
2,172
137,401
87,590
35,971
3,532
8,105
2,202
138,741
88,685
36,021
3,580
8,228
2,227
139,837
89,535
36,022
3,643
8,383
2,254
141,704
91,226
36,087
3,703
8,410
2,278
143,142
92,459
36,264
3,691
8,443
2,286
143,599
93,014
36,148
3,600
8,532
2,305
19 Mobile home
20 Commercial banks . .
21 Finance companies..
22
Savings institutions .
25,488
9,538
9,391
6,559
25,710
8,812
9,028
7,870
25,614
8,725
8,823
8,067
25,626
8,698
8,816
8,112
25,542
8,615
8,785
8,142
25,685
8,609
8,807
8,269
25,860
8,626
8,839
8,395
25,695
8,518
8,623
8,554
25,699
8,538
8.580
8.581
25,677
8,453
8,610
8,614
25,689
8,406
8,578
8,705
23 Other
24 Commercial banks ..
25 Finance companies..
26 Credit unions
27 Retailers
28 Savings institutions .
167,239
63,677
33,588
34,964
4,169
30,841
172,081
66,431
34,192
36,700
4,346
30,412
172,844
66,113
34,196
37,036
4,327
31,172
173,600
66,026
34,537
37,359
4,328
31,349
173,287
65,527
34,524
37,463
4,310
31,463
174,605
65,387
34,962
37,986
4,315
31,955
175,594
64,945
35,452
38,413
4,343
32,441
176,637
64,458
35,874
38,882
4,369
33,054
177,733
64,728
36,168
39,285
4,395
33,158
177,959
64,542
36,289
39,426
4,415
33,287
179,513
64,910
36,794
39,757
4,411
33,640
2
3
4
5
6
7
Net change (during period)
29 Total
76,622
54,979
322
3,682
-319
4,545
3,354
5,007
6,425
2,881
2,219
By major holder
Commercial banks
Finance companies
Credit unions
Retailers3
Savings institutions
Gasoline companies
32,926
23,566
6,493
1,660
12,103
-126
19,520
23,424
5,738
1,722
5,604
-1,030
-172
41
77
-175
457
94
1,500
1,041
686
-2
338
117
30
-693
221
-149
219
54
933
1,640
1,109
-31
938
-44
689
707
907
77
927
48
808
1,944
994
27
1,170
63
3,262
1,959
854
91
199
60
1,681
470
299
1%
246
-12
1,404
-351
704
-119
673
-91
By major type of credit
36 Automobile
37 Commercial banks
38 Credit unions
39 Finance companies
40 Savings institutions
35,705
9,103
5,330
17,840
3,432
36,998
7,706
3,394
23,183
2,715
226
-160
39
252
95
1,373
253
344
706
70
-85
408
111
-649
45
2,552
621
555
1,181
195
850
19
455
185
192
3,033
553
498
1,738
243
3,457
1,280
428
1,707
41
1,240
720
150
319
52
197
528
353
-824
139
41 Revolving
42 Commercial banks
43 Retailers
44 Gasoline companies
45 Savings institutions
46 Credit unions
22,401
17,721
1,488
-126
2,771
547
12,917
9,786
1,545
-1,030
2,008
608
-497
-486
-167
94
61
2
1,540
1,362
-2
117
45
19
163
204
-130
54
29
6
532
457
-38
-44
125
30
1,340
1,095
50
48
123
25
1,096
850
1
63
155
27
1,867
1,691
65
60
27
24
1,438
1,233
177
-12
33
8
457
555
-116
-91
89
19
47 Mobile home
48 Commercial banks
49 Finance companies
50 Savings institutions
778
-85
-405
1,268
222
-726
-363
1,311
-175
-14
-222
62
12
-27
-7
45
-84
-83
-31
30
143
-6
22
127
175
17
32
126
-165
-108
-216
159
4
20
-43
27
-22
-85
30
33
12
-47
-32
91
51 Other
52 Commercial banks
53 Finance companies
54 Credit unions
55 Retailers
56 Savings institutions
17,738
6,187
6,131
616
172
4,632
4,842
2,754
604
1,736
177
-429
768
488
13
37
-9
240
756
-87
341
323
1
177
-313
-499
-13
104
-18
114
1,318
-140
438
523
5
492
989
-442
490
427
28
486
1,043
-487
422
469
26
613
1,096
270
294
403
26
104
226
-186
121
141
20
129
1,554
368
505
331
-4
353
30
31
32
33
34
35
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 Credit
1.56
A41
TERMS OF CONSUMER INSTALLMENT CREDIT
Percent unless noted otherwise
1987
Item
1984
1985
1986
May
June
July
Aug.
Sept.
Oct.
Nov.
INTEREST RATES
1
2
3
4
5
6
Commercial banks 1
48-month new c a r
24-month personal —
120-month mobile home2
Credit card
Auto finance companies
New car
Used car
13.71
16.47
15.58
18.77
12.91
15.94
14.96
18.69
11.33
14.82
13.99
18.26
10.23
14.00
13.23
17.92
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
10.37
14.22
13.24
17.85
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
10.86
14.58
13.62
17.82
14.62
17.85
11.98
17.59
9.44
15.95
10.69
14.45
10.64
14.47
10.52
14.53
9.63
14.53
8.71
14.58
10.31
14.76
12.24
14.90
48.3
39.7
51.5
41.4
50.0
42.6
53.5
45.2
53.6
45.4
53.4
45.5
52.1
45.4
50.7
45.2
52.8
45.2
55.4
45.3
88
92
91
94
91
97
93
98
93
98
93
98
93
98
93
98
93
99
94
99
9,333
5,691
9,915
6,089
10,665
6,555
11,176
7,373
11,214
7,479
11,267
7,527
11,374
7,763
11,455
7,476
11,585
7,537
11,630
7,646
OTHER TERMS 3
7
8
9
10
11
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 1988
F U N D S RAISED IN U.S. CREDIT MARKETS
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1985
1984
Transaction category, sector
1982
1983
1984
1985
1987
1986
1986
HI
H2
HI
H2
HI
H2
HI
Nonfinancial sectors
388.9
550.2
753.9
854.8
833.4
717.3
790.4
722.7
986.8
676.9
989.9
568.3
Treasury securities
Agency issues and mortgages
161.3
162.1
-.9
186.6
186.7
-.1
198.8
199.0
-.2
223.6
223.7
-.1
214.3
214.7
-.3
190.4
190.7
-.2
207.2
207.3
-.1
204.8
204.9
-.1
242.5
242.5
-.1
207.2
207.4
-.1
221.5
222.0
-.5
151.4
151.7
-.4
5 Private domestic nonfinancial sectors
6 Debt capital instruments
7
Tax-exempt obligations
8
9
10
Home mortgages
11
Multifamily residential
Commercial
1?
Farm
13
227.6
148.3
44.2
18.7
85.4
50.5
5.4
25.2
4.2
363.6
253.4
53.7
16.0
183.6
117.5
14.2
49.3
2.6
555.1
313.6
50.4
46.1
217.1
129.7
25.1
63.2
-.9
631.1
447.8
136.4
73.8
237.7
151.9
29.2
62.5
-6.0
619.0
445.0
35.4
121.7
298.0
199.4
33.0
73.9
-8.3
526.9
284.7
33.8
22.5
228.5
139.5
27.8
62.6
-1.4
583.3
342.5
67.0
69.8
205.7
119.9
22.4
63.8
-.4
518.0
350.4
67.0
62.2
221.2
139.2
25.0
59.5
-2.5
744.3
545.2
205.8
85.3
254.2
164.7
33.4
65.5
-9.5
469.6
363.4
-16.9
135.3
245.0
163.8
31.2
58.9
-8.9
768.4
546.7
87.7
108.1
350.9
234.9
34.8
88.9
-7.7
417.0
407.1
20.0
89.0
298.1
217.5
27.7
62.5
-9.6
14
15
16
17
18
Other debt instruments
79.3
19.3
50.4
-6.1
15.8
110.2
56.6
23.2
-.8
31.3
241.5
90.4
67.1
21.7
62.2
183.3
94.6
38.6
14.6
35.5
164.0
65.8
66.5
-9.3
41.0
242.2
94.7
71.2
26.6
49.7
240.8
86.2
63.0
16.8
74.7
167.5
95.3
21.0
14.4
36.8
199.1
93.9
56.2
14.8
34.2
106.2
71.0
12.2
-13.1
36.2
221.8
60.6
120.8
-5.5
45.9
9.9
15.7
-40.2
4.5
29.9
19
?n
?1
??
73
24
By borrowing sector
State and local governments
227.6
21.5
90.0
6.8
40.2
69.0
363.6
34.0
188.2
4.1
77.0
60.3
555.1
27.4
234.6
-.1
97.0
196.0
631.1
91.8
293.4
-13.9
93.1
166.7
619.0
46.4
279.9
-15.1
115.9
192.0
526.9
16.2
235.0
-.5
101.8
174.3
583.3
38.6
234.2
.4
92.2
217.8
518.0
56.3
259.8
-7.0
85.7
123.2
744.3 469.6
127.2
3.1
327.1 232.8
- 2 0 . 8 -16.8
100.5
96.2
210.3 154.3
768.4
89.7
326.9
-13.3
135.5
229.7
417.0
28.6
224.0
-19.5
92.8
91.2
25 Foreign net borrowing in United States
76 Bonds
?7 Bank loans n.e.c
78 Open market paper
29 U.S. government loans
16.0
6.6
-5.5
1.9
13.0
17.3
3.1
3.6
6.5
4.1
8.3
3.8
-6.6
6.2
5.0
1.2
3.8
-2.8
6.2
-6.0
9.0
2.6
-1.0
11.5
-4.0
36.1
1.3
-1.3
16.6
19.5
-19.4
6.3
-11.9
-4.3
-9.6
-5.8
5.5
-5.8
2.8
-8.2
8.2
2.1
.1
9.6
-3.7
21.5
6.2
1.5
19.1
-5.3
-3.5
-1.1
-3.5
3.9
-2.7
-12.6
-1.1
-3.5
-5.3
-2.8
30 Total domestic plus foreign
404.8
567.5
762.2
856.0
842.4
753.4
771.0
716.9
995.0
698.3
986.4
555.7
1 Total net borrowing by domestic nonfinancial sectors
?
3
4
By sector and instrument
Bank loans n.e.c
Open market paper
Other
Nonfarm noncorporate
Corporate
Financial sectors
31 Total net borrowing by financial sectors . . .
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
Private financial sectors
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks
By sector
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Finance companies
REITs
CMO Issuers
90.3
99.3
151.9
199.0
291.1
153.0
150.7
175.1
222.8
238.8
343.4
317.5
64.9
14.9
49.5
.4
25.4
12.7
.1
1.9
9.9
.8
67.8
1.4
66.4
74.9
30.4
44.4
77.3
31.5
45.8
96.8
26.6
70.3
80.5
30.8
.4
.6
32.1
16.5
73.5
41.5
.4
.7
16.0
14.9
' 78.3
48.9
-.1
21.3
-7.0
77.0
36.2
.4
.7
24.1
15.7
174.3
13.2
161.4
-.4
116.8
68.7
.1
4.0
24.2
19.8
72.5
29.4
43.1
31.5
17.4
101.5
20.6
79.9
1.1
97.4
48.6
.1
2.6
32.0
14.2
2.3
14.6
12.5
106.3
14.6
89.5
2.2
116.5
48.3
.1
2.9
49.4
15.9
133.8
6.4
126.6
.8
105.0
70.9
.6
4.0
15.1
14.4
214.8
20.0
196.3
-1.5
128.6
66.5
-.5
4.0
33.4
25.2
180.2
7.8
171.8
.5
137.4
92.5
.2
-7.4
38.3
13.6
15.3
49.5
25.4
11.7
6.8
2.5
4.5
-.2
.2
1.4
66.4
31.5
5.0
12.1
-2.1
12.9
-.1
3.7
30.4
44.4
77.0
7.3
15.6
22.7
18.9
.1
12.4
21.7
79.9
97.4
-4.9
14.5
22.3
53.9
-.7
12.2
12.9
161.4
116.8
-3.6
4.6
29.3
50.2
-.3
36.7
29.4
43.1
80.5
19.8
20.4
22.0
8.2
.2
9.8
31.5
45.8
73.5
-5.3
10.8
23.3
29.6
.1
15.0
26.6
70.3
78.3
-4.7
10.2
14.2
49.7
-.6
9.5
16.8
89.5
116.5
-5.0
18.9
30.4
58.1
-.8
14.9
7.2
126.6
105.0
-2.7
-1.7
25.5
53.1
.6
30.2
18.5
196.3
128.6
-4.6
10.9
33.1
47.2
-1.3
43.3
8.3
171.8
137.4
4.4
21.6
30.7
27.2
-.2
53.7
1,217.8
937.1
1,329.8
873.2
346.6 340.2
205.8 -16.9
135.7 212.4
254.2 245.6
93.9
71.0
17.7
59.2
73.7
21.0
48.6
46.1
437.8
87.7
173.5
350.4
60.6
121.3
31.7
66.9
331.0
20.0
180.5
298.3
15.7
-51.0
37.5
41.1
*
*
All sectors
51 Total net borrowing
495.1
666.8
914.1
52
53
54
55
56
57
58
59
225.9
44.2
38.0
85.4
19.3
46.7
5.7
30.0
254.4
53.7
36.5
183.6
56.6
26.7
26.9
28.4
273.8
50.4
86.1
217.4
90.4
61.1
52.0
82.9
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
1,054.9 1,133.5
324.2
136.4
126.1
237.7
94.6
38.3
52.8
44.8
389.0
35.4
192.9
298.0
65.8
69.5
26.4
56.5
906.4
921.8
892.1
263.1
33.8
54.6
228.8
94.7
70.4
75.4
85.7
284.5
67.0
117.6
206.0
86.2
51.8
28.6
80.0
301.7
67.0
116.6
221.2
95.3
17.5
31.8
41.1
External corporate equity funds raised in United States
60 Total new share issues
25.8
61.8
-36.4
19.9
91.6 -47.9
-24.9
3.0
61
62
63
64
65
8.8
17 0
11.4
4.2
1.4
27.2
34.6
28.3
2.6
3.7
29.3
-65.7
-74.5
7.8
.9
85.7
-65.8
-81.5
12.0
3.7
26.5
163.3
-71.7 -74.4
-80.8 -79.5
8.3
6.8
.7 - 1 . 6
32.2
-57.1
-69.4
8.8
3.5
64.2
-61.2
-75.5
11.2
3.1
Mutual funds
All other
Nonfinancial corporations
Financial corporations
Foreign shares purchased in United States.
100.8
82.3
61.8
107.1 155.5
-70.4 -54.7
-87.5 -68.7
7.5
12.8
6.6
4.3
171.1
-88.7
-92.7
9.1
-5.1
123.3
-61.5
-70.0
6.7
1.9
36.7
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
Transaction category, or sector
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
2
3
4
5
6
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to savings and loans
Other loans and securities
1982
1983
1984
1985
1985
1986
1987
1986
HI
H2
HI
H2
HI
H2
HI
388.9
550.2
753.9
854.8
833.4
717.3
790.4
722.7
986.8
676.9
989.9
568.3
114.9
22.3
61.0
.8
30.8
114.0
26.3
76.1
-7.0
18.6
157.6
39.3
56.5
15.7
46.2
202.3
47.1
94.6
14.2
46.3
317.3
84.8
158.5
19.8
54.2
132.7
27.6
55.5
16.5
33.2
182.5
51.0
57.4
14.9
59.2
195.8
50.3
88.6
12.5
44.4
208.7
43.9
100.7
15.9
48.2
264.1
74.0
123.8
14.4
52.0
370.6
95.6
193.2
25.2
56.5
241.3
46.3
164.9
13.6
16.5
7
8
9
10
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
15.9
65.5
9.8
23.7
9.7
69.8
10.9
23.7
17.1
74.3
8.4
57.9
16.8
101.5
21.6
62.3
9.5
175.5
30.2
102.1
7.5
73.3
12.0
39.8
26.6
75.2
4.8
75.9
25.1
96.4
27.5
46.8
8.4
106.7
15.8
77.8
10.8
128.2
13.2
111.9
8.2
222.8
47.2
92.3
-4.1
167.7
10.8
66.9
11
12
Agency and foreign borrowing not in line 1
Sponsored credit agencies and mortgage pools
Foreign
64.9
16.0
67.8
17.3
74.9
8.3
101.5
1.2
174.3
9.0
72.5
36.1
77.3
-19.4
96.8
-5.8
106.3
8.2
133.8
21.5
214.8
-3.5
180.2
-12.6
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
354.8
203.6
44.2
14.7
-5.3
98.3
.8
521.3
228.1
53.7
14.5
55.0
162.4
-7.0
679.5
234.5
50.4
35.1
98.2
276.9
15.7
755.2
277.0
136.4
40.8
86.4
228.8
14.2
699.3
304.2
35.4
84.3
73.8
221.4
19.8
693.2
235.5
33.8
17.3
111.7
311.5
16.5
665.7
233.5
67.0
53.0
84.8
242.3
14.9
618.0
251.3
67.0
39.7
75.5
197.0
12.5
892.5
302.7
205.8
42.0
97.4
260.6
15.9
568.0
266.3
-16.9
100.8
71.3
161.0
14.4
830.6
342.2
87.7
67.8
76.4
281.8
25.2
494.6
284.7
20.0
61.6
80.3
61.6
13.6
Private financial intermediation
20 Credit market funds advanced by private financial
institutions
21 Commercial banking
22
Savings institutions
23
Insurance and pension funds
24 Other finance
274.2
110.2
22.9
96.6
44.5
395.8
144.3
135.6
100.1
15.8
559.8
168.9
150.2
121.8
118.9
579.5
186.3
83.0
156.0
154.2
726.1
194.7
105.8
175.9
249.6
587.5
192.2
167.0
148.3
80.0
532.1
145.5
133.5
95.3
157.8
483.8
143.3
54.5
139.4
146.5
675.2
229.4
111.4
172.5
161.9
638.9
117.2
94.5
170.6
256.7
813.2
272.3
117.2
181.2
242.4
485.1
49.9
85.7
213.3
136.2
25 Sources of funds
26 Private domestic deposits and RPs
27 Credit market borrowing
274.2
196.2
25.4
395.8
215.4
31.5
559.8
316.9
77.0
579.5
213.2
97.4
726.1
272.8
116.8
587.5
280.2
80.5
532.1
353.5
73.5
483.8
191.4
78.3
675.2
235.0
116.5
638.9
252.2
105.0
813.2
293.4
128.6
485.1
15.1
137.4
28
29
30
31
32
52.6
-31.4
6.1
106.0
-28.1
148.9
16.3
-5.3
109.7
28.2
165.9
5.4
4.0
118.6
37.9
268.9
17.7
10.3
141.0
99.9
336.4
12.4
1.7
152.5
169.8
226.8
10.9
-2.8
162.5
56.1
105.1
-.1
10.8
74.6
19.7
214.1
21.3
13.9
118.6
60.3
323.6
14.2
6.6
163.4
139.4
281.7
12.3
-4.2
138.6
134.9
391.1
12.5
7.6
166.4
204.6
332.6
41.8
-4.4
234.4
60.8
106.0
68.5
25.0
-5.7
18.2
157.0
99.3
40.3
-11.6
12.0
17.0
196.7
123.6
30.4
5.2
9.3
28.1
273.2
145.3
47.6
11.8
43.9
24.6
90.1
43.4
-.8
34.4
-4.8
17.9
186.2
162.8
10.4
-26.4
15.6
23.8
207.1
84.3
50.4
36.9
3.0
32.5
212.5
156.2
14.8
15.4
3.5
22.6
333.9
134.5
80.4
8.2
84.2
26.6
34.1
37.4
-68.7
68.1
-16.3
13.6
146.1
49.4
67.2
.8
6.7
22.1
146.9
69.9
21.7
39.0
7.7
8.5
39 Deposits and currency
40 Currency
41 Checkable deposits
Small time and savings accounts
4?
43 Money market fund shares
44 Large time deposits
45
Security RPs
46 Deposits in foreign countries
205.5
9.7
18.0
136.0
33.5
-2.4
11.1
-.4
232.8
14.3
28.6
215.7
-39.0
-8.4
18.5
3.1
320.4
8.6
27.9
150.1
49.0
84.9
5.0
-5.1
223.5
12.4
41.4
139.1
8.9
7.2
16.6
-2.1
293.2
14.4
97.7
122.5
43.8
-9.3
18.3
5.9
286.8
13.7
26.0
129.0
24.5
92.0
8.7
-7.1
354.0
3.6
29.8
171.2
73.4
77.9
1.2
-3.1
198.3
15.9
14.6
161.5
10.6
-7.6
12.2
-9.0
248.7
8.8
68.2
116.7
7.1
21.9
21.1
4.9
262.0
10.7
79.9
115.4
46.9
10.0
-.9
324.4
18.2
115.5
129.5
40.6
-18.7
26.5
12.8
10.2
10.0
-28.5
33.9
-4.6
1.5
12.7
-14.9
47 Total of credit market instruments, deposits and
currency
311.5
389.9
517.1
496.7
383.3
473.0
561.1
410.7
582.6
296.0
470.5
157.1
48
49
50
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
28.4
77.3
-7.7
20.1
75.9
40.0
20.7
82.4
63.3
23.6
76.7
80.1
37.7
103.8
114.5
17.6
84.7
50.7
23.7
79.9
75.8
27.3
78.3
68.1
21.0
75.6
92.0
37.8
112.5
124.2
37.6
97.9
104.9
43.4
98.1
108.7
MEMO: Corporate equities not included above
51 Total net issues
52 Mutual fund shares
53 Other equities
54 Acquisitions by financial institutions
55 Other net purchases
25.8
8.8
17.0
25.9
-.1
61.8
27.2
34.6
51.1
10.7
-36.4
29.3
-65.7
19.7
-56.1
19.9
85.7
-65.8
42.8
-22.9
91.6
163.5
-71.7
48.2
43.4
-47.9
26.5
-74.4
-.2
-47.7
-24.9
32.2
-57.1
39.7
-64.6
3.0
64.2
-61.2
58.8
-55.8
36.7
107.1
-70.4
26.8
10.0
100.8
155.5
-54.7
56.6
44.2
82.3
171.1
-88.7
39.7
42.6
61.8
123.3
-61.5
65.5
-3.6
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
*
NOTES BY LINE NUMBER.
1. Line 1 of table 1.57.
2. Sum of lines 3 - 6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
13. 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.
18. Includes farm and commercial mortgages.
26. Line 39 less lines 40 and 46.
27. Excludes equity issues and investment company shares. Includes line 19.
29. 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.
30. 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 1988
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures 1
1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1987
Measure
1984
1985
1986
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.'
Dec.
1 Industrial production
121.4
123.8
125.1
127.4
128.2
129.1
130.6
131.2
131.0r
132.5r
133.1
133.3
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
126.7
127.3
118.0
139.6
124.7
114.2
130.8
131.1
120.2
145.4
130.0
114.2
133.2
132.3
124.5
142.7
136.4
113.9
135.8
134.5
125.5
146.4
140.3
115.9
136.9
135.5
127.3
146.3
141.8
116.3
137.8
136.2
127.2
148.1
143.3
117.2
139.5
137.9
128.9
149.7
145.0
118.5
139.9
138.4
129.4
150.2
145.3
119.4
139.4r
137.8'
127.7''
151.2"
144.9'
119.7r
141.0'
139.5'
129.3
153.1'
146.0'
121.C
141.2
139.5
129.5
152.8
146.9
122.0
141.3
139.4
129.7
152.4
147.5
122.5
123.4
126.4
129.1
132.4
133.2
134.0
135.6
135.9
135.7
137.4'
138.0
138.3
80.5
82.0
80.1
80.2
79.8
78.5
80.2
79.1
80.4
79.3
80.8
79.8
81.5
80.6
81.5
81.1
81.3
81.2
82.1
82.0
82.3
82.6
82.2
82.8
2
3
4
5
6
7
Industry groupings
8 Manufacturing
Capacity utilization (percent) 2
9 Manufacturing
10 Industrial materials industries
11 Construction contracts (1982 = 100)3
135.0
148.0
155.0
162.0
149.0
161.0
163.0
171.0
157.0
166.0
153.0
159.0
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 income
Retail sales
114.6
101.6
98.4
94.1
120.0
193.4
185.0
164.6
193.5
179.0
118.3
102.4
97.8
92.6
125.0
207.0
198.7
172.8
206.0
190.6
120.8
102.4
96.5
91.2
128.9
219.9
210.2
176.4
219.1
199.9
123.2
101.7
96.6
91.5
132.2
230.3
219.5
178.9
222.5
207.4
123.3
101.7
96.6
91.6
132.4
230.7
220.7
179.9
229.6
207.3
123.5
101.7
96.6
91.6
132.6
231.1
221.2
180.0
228.9
209.6
123.8
102.1
97.0
92.1
132.9
232.6
222.3
180.1
230.4
210.9
124.0
102.2
97.2
92.2
133.1
233.9
224.2
182.0
231.6
214.0
124.2
102.4
97.4
92.5
133.4
235.3
225.4
183.7
232.9
210.5
124.9
103.C
97.8
92.9
134.1
239.7'
227.1
184.7'
237.7'
208.5
125.2
103.4
98.2
93.4
134.3
238.6
228.6
185.7
236.1
208.8
125.6
103.8
98.4
93.7
134.7
240.4
229.5
186.2
237.9
210.3
22
23
Prices7
Consumer (1967 = 100)
Producer finished goods (1967 = 100) . . .
311.1
291.1
322.2
293.7
328.4
289.7
337.7
294.9
338.7
295.8
340.1
2%. 2
340.8
297.4
342.7
297.3
344.4
296.7
345.3
298.2
345.8
298.1
345.7
2%. 8
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
T h o u s a n d s o f p e r s o n s ; m o n t h l y data are seasonally adjusted. E x c e p t i o n s noted.
1987
1985
Category
1986
1987
May
June
July
Aug.
Sept.
Oct.'
Nov.'
Dec.
185,010
184,777
184,941
185,127
185,264
185,428
185,575
185,737
185,882
121,846'
119,608'
122,132'
119,89c
122,568'
120,306'
122,230'
119,963'
122,651
120,387
122,861
120,594
122,984
120,722
110,332
3,172
110,529
3,215
HOUSEHOLD SURVEY DATA
1 Noninstitutional population1
180,440
1
182,822
117,695
115,461
120,078
117,834
122,122
119,865
122,151"
119,907'
103,971
3,179
106,434
3,163
109,232
3,208
109,065'
3,269'
109,108'
3,192'
109,427'
3,212'
109,907'
3,143'
109,688'
3,184'
109,961
3,249
8,312
7.2
62,745
8,237
7.0
62,744
7,425
6.2
62,888
7,573'
6.3
62,626'
7,308'
6.1
63,095'
7,251'
6.0
62,995'
7,256'
6.0
62,696'
7,091'
5.9
63,198'
7,177
6.0
62,924
9 Nonagricultural payroll employment3
97,519
99,610
102,105
101,708
101,818
102,126
102,275
102,434
102,983
103,246
103,572
Manufacturing
Mining
Contract construction
T r a n s p o r t a t i o n a n d p u b l i c utilities
Trade
Finance
Service
Government
19,260
927
4,673
5,238
23,073
5,955
22,000
16,394
18,994
783
4,904
5,244
23,580
6,297
23,099
16,710
19,112
742
5,032
5,377
24,056
6,588
24,136
17,063
19,018
735
4,999
5,344
23,980
6,576
24,025
17,031
19,015
738
5,008
5,350
24,007
6,586
24,083
17,031
19,104
744
5,002
5,363
24,071
6,608
24,214
17,020
19,129
751
5,006
5,377
24,063
6,624
24,279
17,046
19,169
759
4,989
5,416
24,129
6,629
24,295
17,048
19,247
764
5,053
5,436
24,239
6,650
24,406
17,188
19,336
760
5,077
5,460
24,275
6,658
24,472
17,208
19,376
762
5,132
5,458
24,291
6,660
24,615
17,278
2 L a b o r f o r c e (including A r m e d Forces)
Civilian labor f o r c e
3
4
5
Nonagricultural industries
Agriculture
Unemployment
Number
6
R a t e ( p e r c e n t of civilian l a b o r f o r c e )
7
8 N o t in l a b o r f o r c e
7,090
5.9
62,876'
6,978
5.8
62,898
ESTABLISHMENT SURVEY DATA
10
11
12
13
14
15
16
17
A46
2.12
Domestic Nonfinancial Statistics • March 1988
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION
Seasonally adjusted
1987
1987
1987
Series
Q2
Ql
Q3
Q4
Ql
Q2
Q3
Q4
Ql
Capacity (percent of 1977 output)
Output (1977 = 100)
Q2
Q3
Q4
Utilization rate (percent)
1 Total industry
126.9
128.2
130.9
133.0
159.5
160.4
161.3
162.2
79.5
79.9
81.2
82.0
2 Mining
3 Utilities
98.8
108.1
99.0
108.3
100.6
111.6
103.2
112.5
130.4
137.7
129.7
138.3
129.0
138.8
128.4
139.4
75.8
78.5
76.3
78.3
78.0
80.5'
80.3
80.7
4 Manufacturing
131.6
133.2
135.7
137.9
164.5
165.6
166.7
167.7
80.0
80.5
81.4
82.2
5 Primary processing
6 Advanced processing...
114.3
142.0
116.1
143.5
119.2
145.8
122.1
147.5
138.2
180.3
139.0
181.6
139.8
182.9
140.6
184.1
82.7
78.7
83.5
79.0
85.3'
79.7'
86.9
80.1
7 Materials
115.0
116.5
119.1
121.9
146.1
146.7
147.2
147.8
78.7
79.4
81.0'
82.5
121.4
74.7
121.2
122.3
136.4
122.9
122.9
77.0
124.0
125.1
137.7
125.3
125.5
83.6
128.2
130.5
144.5
130.7
129.6
91.1
129.3
132.3
162.3
110.6
145.6
142.4
142.8
148.8
163.1
110.0
143.8
143.4
143.9
149.8
163.9
109.4
144.7
144.4
145.1
150.9
164.7
108.8
145.6
145.4
74.8
67.5
84.8
85.9
95.5
82.6
75.4
70.0
86.2
87.2
95.7
83.6
76.7'
76.5'
88.6
90.4
78.7
83.8
91.0
98.3
98.7
100.0
101.8
120.3
120.2
120.1
119.9
81.7
82.1
83.3
84.9
Sept.
Oct.'
Nov.'
Dec.
8 Durable goods
9 Metal materials
10 Nondurable goods
11
17
13
14 Energy materials
Previous cycle
High
1
Low
Latest cycle
High
2
Low
1986
Dec.
1987
Apr.
May
June
July
Aug.
Capacity utilization rate (percent)
15 Total industry
88.6
72.1
86.9
69.5
79.7
79.6
79.9
80.3
81.1
81.4
81.1'
81.9
82.0
82.1
16 Mining
17 Utilities
92.8
95.6
87.8
82.9
95.2
88.5
76.9
78.0
74.2
79.3
75.9
76.8
76.5
79.2
76.6
79.0
76.8
80.2
78.2
81.3
79.1'
80.0'
80.2
80.5
80.2
81.0
80.6
80.5
18 Manufacturing
87.7
69.9
86.5
68.0
80.2
80.2
80.4
80.8
81.5
81.5
81.3
82.1
82.3
82.2
19 Primary processing
20 Advanced processing..
91.9
86.0
68.3
71.1
89.1
85.1
65.1
69.5
83.1
78.7
83.5
78.7
83.2
79.2
84.0
79.2
85.4
79.8
85.3
79.9
85.1
79.5
86.1
80.2
87.0
80.2
87.4
80.0
21 Materials
92.0
70.5
89.1
68.5
79.1
79.1
79.3
79.8
80.6
81.1
81.2'
82.0
82.6
82.8
22 Durable goods
23 Metal materials
91.8
99.2
64.4
67.1
89.8
93.6
60.9
45.7
75.2
68.5
75.0
68.8
75.1
69.7
75.9
71.5
76.5
73.9
76.6
77.5
77.0'
78.3'
78.2
82.4
78.8
83.8
79.1
85.1
24 Nondurable goods
91.1
66.7
88.1
70.7
86.0
86.5
86.2
86.1
88.4
88.6
88.7
88.2
88.8
89.3
92.8
98.4
92.5
64.8
70.6
64.4
89.4
97.3
87.9
68.8
79.9
63.5
87.0
98.7
83.0
87.5
95.1
83.9
87.1
95.7
83.9
87.1
96.3
83.1
90.0
100.5
85.1
90.5
99.9
86.4
90.7
98.5'
87.4
90.3
97.3
88.0
91.1
98.8
88.4
91.5
76
">7
28 Energy materials
94.6
86.9
94.0
82.3
81.1
81.3
82.1
82.8
82.4
84.0
83.5
84.6
85.2
84.9
Textile, paper, and
chemical
25
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
Groups
1977
proportion
1987
1986
1986
avg.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept/
Oct.
Nov.''
Dec.'
Index (1977 = 100)
MAJOR MARKET
1 Total index
100.00
125.0
126.7
126.5
127.2
127.3
127.4
128.4
129.1
130.6
131.2
131.0
132.5
133.1
133.3
57.72
44.77
25.52
19.25
12.94
42.28
133.2
132.3
124.5
142.7
136.4
113.9
135.0
133.7
127.2
142.2
139.7
115.2
134.9
133.6
126.8
142.8
139.1
115.2
136.1
135.0
127.5
144.9
139.7
115.1
136.2
135.0
127.5
145.0
140.4
115.2
137.2
134.5
126.6
144.9
139.9
116.2
137.2
135.8
128.2
145.8
142.1
116.3
137.8
136.2
127.2
148.1
143.3
117.2
139.5
137.9
128.9
149.7
145.0
118.5
139.9
138.4
129.4
150.2
145.3
119.4
139.4
137.8
127.7
151.2
144.9
119.7
141.0
139.5
129.3
153.1
146.0
121.0
141.2
139.5
129.5
152.8
146.9
122.0
141.3
139.4
129.7
152.4
147.5
122.5
6.89
2.98
1.79
1.16
.63
1.19
3.91
1.24
1.19
.96
1.71
116.2
115.1
112.9
97.3
141.8
118.4
117.1
139.5
141.6
125.8
96.0
121.5
117.7
115.6
99.5
145.6
120.8
124.4
153.2
155.1
132.0
99.4
120.0
117.6
117.9
94.3
161.9
117.1
121.9
146.9
148.9
129.1
99.8
122.4
123.5
125.2
105.3
162.1
121.0
121.6
145.2
146.7
130.8
99.3
121.2
121.2
121.6
100.9
159.9
120.5
121.2
142.9
143.8
131.3
99.8
118.1
115.7
111.5
91.8
148.1
121.9
119.9
137.7
139.2
133.5
99.4
120.2
118.0
113.1
91.0
154.2
125.3
121.8
142.2
142.3
133.3
100.7
117.4
114.9
107.9
87.4
146.0
125.4
119.3
133.4
133.4
132.3
101.8
120.4
117.5
112.3
86.4
160.4
125.3
122.5
141.7
142.6
134.1
102.2
121.2
118.0
112.4
76.8
178.4
126.6
123.6
147.1
145.5
132.0
102.0
118.6
114.2
107.2
79.1
159.4
124.8
121.9
141.8
140.6
131.6
102.2
124.4
124.3
122.2
94.7
173.2
127.5
124.6
145.7
146.1
132.9
104.6
124.5
121.3
118.7
91.9
123.1
115.8
110.2
83.7
125.1
126.9
149.9
150.6
134.2
106.2
124.2
128.7
152.7
19 Nondurable consumer goods
20 Consumer staples
Consumer foods and tobacco
71
22
Nonfood staples
23
Consumer chemical products
Consumer paper products
24
75
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
127.5
97.0
134.1
131.9
136.5
161.2
147.4
105.7
92.8
129.4
136.0
133.9
138.2
163.1
150.1
106.4
92.2
120.8
129.2
135.9
132.9
139.0
165.9
149.4
106.3
95.0
117.8
129.4
135.9
134.0
137.9
164.7
147.8
105.7
92.5
119.2
129.8
136.5
134.8
138.2
165.7
147.5
105.8
94.1
117.7
129.8
136.4
134.4
138.5
164.7
148.9
106.5
94.5
118.7
131.1
137.7
135.6
139.9
165.9
152.9
106.4
92.1
121.0
130.9
137.6
136.0
139.2
164.4
153.1
105.9
91.9
120.2
132.1
138.9
137.2
140.6
165.7
153.8
108.0
92.7
123.6
132.5
139.2
137.4
141.2
167.4
153.9
107.7
91.4
124.3
131.0
137.8
137.0
138.6
163.6
153.2
105.0
91.6
118.7
131.1
137.7
137.9
137.5
160.8
151.8
105.8
92.4
119.4
131.4
138.0
137.9
138.2
162.3
152.9
105.4
92.0
132.1
138.7
Equipment
28 Business and defense equipment
29 Business equipment
30
Construction, mining, and farm
31
Manufacturing
V
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
147.1
138.6
59.8
112.0
81.6
214.6
109.2
180.3
147.0
137.1
58.2
108.8
80.2
213.7
108.9
185.8
147.7
138.1
57.2
110.1
79.6
215.9
109.5
185.2
150.1
140.8
56.8
111.5
81.2
218.4
117.4
186.5
150.1
140.8
58.1
110.9
81.7
219.7
114.0
186.6
150.0
140.8
58.6
111.1
82.4
220.9
110.4
186.1
150.8
141.7
61.2
111.5
84.0
222.0
110.1
186.5
153.2
144.2
63.0
117.2
84.0
226.7
105.4
188.6
154.4
145.6
65.0
120.4
81.8
227.9
106.1
188.7
154.5
145.6
66.4
120.9
82.8
227.7
104.7
189.1
155.2
146.3
66.1
122.0
81.1
229.1
105.1
189.8
157.2
148.7
67.3
120.5
83.0
232.4
112.1
190.2
157.1
148.7
66.7
122.0
83.0
232.3
110.9
190.0
156.9
148.2
66.2
122.4
82.9
231.7
109.2
191.1
5.95 124.7
6.99 146.4
5.67 150.6
1.31 128.3
127.9
149.8
154.3
130.3
128.3
148.3
153.3
126.8
128.4
149.4
154.1
128.8
128.5
150.5
155.2
130.3
127.3
150.5
155.5
129.0
128.3
153.8
158.2
135.0
131.5
153.4
158.5
131.1
133.1
155.2
160.5
132.3
132.5
156.3
161.0
135.8
132.3
155.6
160.9
132.7
133.1
157.0
162.2
134.6
134.0
157.8
163.5
133.2
134.5
20.50
4.92
5.94
9.64
4.64
119.7
98.5
153.9
109.4
80.0
120.7
98.8
154.2
111.2
80.3
120.5
99.0
154.0
110.8
79.2
121.5
100.0
155.6
111.5
80.3
121.8
98.9
155.8
112.6
80.8
122.2
96.2
157.1
114.1
81.8
121.6
95.2
156.0
113.9
81.9
124.0
99.2
158.3
115.5
83.6
125.2
98.5
159.3
117.7
86.6
125.5
99.6
159.5
117.9
90.4
126.4
99.0
161.1
118.9
91.3
128.7
102.0
162.2
121.6
95.3
129.7
101.8
163.7
123.1
97.1
130.5
101.7
164.6
124.3
98.7
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
118.3
123.2
123.2
122.5
122.8
125.4
125.3
124.1
127.6
128.3
128.6
128.2
129.3
130.3
7.53 118.9
1.52 110.6
1.55 132.1
4.46 117.1
2.57 116.5
124.7
116.1
140.2
122.3
118.5
125.0
116.5
137.9
123.4
118.0
123.6
115.8
136.7
121.8
119.0
124.0
118.5
134.7
122.1
119.2
126.9
125.0
137.4
125.0
121.1
126.5
129.6
117.8
145.4
128.1
122.0
130.6
116.7
145.0
130.4
121.4
131.2
116.0
143.3
132.2
120.9
131.0
113.0
141.9
133.4
119.8
132.4
114.0
144.5
134.4
133.4
137.4
125.0
122.0
125.1
111.9
139.0
124.9
120.9
51 Energy materials
52 Primary energy
53 Converted fuel materials
11.69
7.57
4.12
98.8
105.1
87.3
98.9
104.1
89.4
97.6
102.6
88.5
97.0
101.5
88.9
97.5
102.3
88.7
99.3
103.6
91.4
99.4
104.0
91.0
99.0
102.5
92.5
100.9
104.6
94.1
100.2
104.6
92.2
101.5
106.3
92.7
102.1
107.2
92.8
101.7
2 Products
3
Final products
4
Consumer goods
5
Equipment
6 Intermediate products..'
7 Materials
Consumer goods
R Durable consumer goods
9 Automotive products
10
Autos and trucks
11
Autos, consumer
12
Trucks, consumer
N
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
Equipment parts
4?
43 Durable materials n.e.c
44
Basic metal materials
99.9
105.5
89.6
139.4
A48
2.13
Domestic Nonfinancial Statistics • March 1988
INDUSTRIAL PRODUCTION Indexes and Gross Value—Continued
Groups
SIC
code
1977
1986
1987
1986
avg.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept/
Oct.
Nov."
Dec/
Index (1977 = 100)
MAJOR INDUSTRY
15.79
9.83
5.96
84.21
35.11
49.10
103.4
99.6
109.6
129.1
130.9
127.9
101.6
97.1
109.0
131.3
133.4
129.7
102.6
99.4
108.0
130.7
132.7
129.3
102.4
98.8
108.5
131.6
132.9
130.8
101.9
98.3
107.9
132.4
133.7
131.5
101.4
98.6
106.0
132.4
134.6
130.9
103.1
99.2
109.6
133.2
135.7
131.4
103.0
99.2
109.4
134.0
136.9
132.0
103.7
99.2
111.2
135.6
138.5
133.5
105.4
100.9
112.9
135.9
138.8
133.8
105.4
101.9
111.2
135.7
138.6
133.7
106.5
103.2
112.1
137.4
138.3
136.7
106.7
103.0
112.9
138.0
139.5
137.0
106.7
103.3
112.4
138.3
140.3
136.8
10
11.12
13
14
.50
1.60
7.07
.66
124.2
94.7
113.9
76.2
125.4
89.8
122.5
74.1
136.4
91.2
116.1
73.6
131.7
90.9
122.1
71.2
122.3
92.4
123.8
65.7
121.9
93.1
125.4
71.7
127.2
92.1
127.6
70.7
128.8
91.8
128.5
71.4
127.9
91.8
130.7
79.3
130.5
93.0
130.3
86.5
133.3
93.3
130.0
85.6
140.3
93.4
131.0
141.5
92.9
132.6
142.0
92.9
1 Mining and utilities
Mining
2
Utilities
3
4 Manufacturing
5
Nondurable
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
133.6
96.6
113.2
103.6
136.4
136.7
93.4
113.4
104.9
141.1
134.6
89.9
109.2
106.1
139.7
136.4
99.9
110.8
106.5
139.9
137.3
101.1
112.6
105.4
139.9
136.0
99.6
116.6
105.3
140.5
137.4
106.6
115.7
106.4
141.3
137.7
107.0
117.2
107.7
142.6
138.5
138.8
110.4
119.8
108.4
148.9
139.5
101.7
118.2
107.6
147.4
138.4
103.4
117.3
108.0
145.7
139.2
118.3
109.7
148.8
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
163.4
133.0
92.1
153.3
61.3
166.4
135.7
93.5
157.1
60.2
166.3
136.4
95.6
155.3
58.9
164.4
135.7
91.6
156.2
59.8
167.6
135.3
92.1
158.6
59.4
169.2
137.3
94.0
160.5
60.2
171.4
138.1
92.6
162.2
61.4
174.1
139.3
92.3
165.4
60.8
174.0
140.8
94.1
167.2
59.2
174.7
142.3
92.9
164.8
61.3
174.9
142.4
93.5
165.2
60.7
175.2
141.8
94.6
166.7
60.2
175.7
143.4
94.2
168.2
58.6
24
25
32
2.30
1.27
2.72
123.4
146.7
120.2
133.5
148.8
119.4
128.5
143.5
121.9
129.6
145.0
118.8
128.9
149.9
119.8
127.8
148.2
120.6
130.3
150.5
117.2
131.1
153.9
117.9
132.8
156.2
118.8
131.1
155.2
116.5
126.9
155.9
118.6
129.4
156.0
118.9
134.0
157.0
118.6
33
331.2
34
35
36
5.33
3.49
6.46
9.54
7.15
75.8
63.4
107.4
141.9
166.5
73.4
61.3
109.6
144.8
170.4
72.8
59.5
108.4
143.4
170.4
75.1
62.3
108.3
145.5
171.0
77.0
65.4
110.5
148.5
168.5
76.1
65.0
109.9
150.4
168.4
77.0
65.7
108.5
149.7
171.1
78.8
68.3
111.1
151.8
170.5
81.4
70.9
111.1
155.3
172.5
85.1
76.0
110.1
154.3
174.3
84.5
74.6
111.1
156.6
173.4
90.5
82.0
113.1
158.0
175.5
91.3
81.8
113.5
157.6
176.4
114.0
156.5
177.6
37
371
9.13
5.25
125.8
110.9
126.8
109.7
129.0
112.0
132.7
117.7
132.2
116.5
127.8
109.8
129.4
112.0
126.5
107.4
127.6
109.4
128.1
109.1
125.5
105.6
131.8
116.0
130.6
114.0
128.6
110.4
372-6.9
38
39
3.87
2.66
1.46
146.1
141.3
99.3
150.1
140.2
103.8
151.9
139.5
101.6
153.0
142.0
101.6
153.4
140.3
103.9
152.3
142.8
101.4
153.1
142.1
101.9
152.4
144.5
101.2
152.3
143.8
100.5
153.9
146.3
102.2
152.5
145.6
102.1
153.3
147.3
104.6
153.2
149.0
105.1
153.3
150.0
4.17
122.2
122.6
121.6
122.3
123.6
122.3
128.8
128.8
131.0
132.0
127.5
126.8
127.1
Durable manufactures
21 Lumber and products
22 Furniture and fixtures
23 Clay, glass, stone products
24
25
26
27
28
Primary metals
Iron and steel
Fabricated metal products
Nonelectrical machinery
Electrical machinery
29 Transportation equipment
30
Motor vehicles and parts
31
Aerospace and miscellaneous
transportation equipment
32 Instruments
33 Miscellaneous manufactures
Utilities
34 Electric
119.3
149.2
176.4
95.5
90.6
Gross value (billions of 1982 dollars, annual rates)
MAJOR MARKET
35 Products, total.
517.5 1,702.2 1,700.7 1,701.6 1,718.7 1,725.2 1,710.0 1,723.0 1,720.4 1,732.5 1,741.7 1,735.9 1,775.3 1,772.7 1.773.2
36 Final
37
Consumer goods.
38
Equipment
39 Intermediate
405.7 1,314.5 1,307.3 1,310.9 1,329.2 1,330.3 1,316.5 1,324.7 1,320.1 1,326.6 1,334.9 1,330.3 1,362.5 1,359.3 1.358.3
272.7
853.8 857.1 860.0 865.3 868.1 857.1 862.8 855.1 863.2 866.4 856.9 878.2 878.3 880.9
133.0
458.2 450.2 450.9 463.9 462.2 459.4 461.9 465.0 463.5 468.5 473.4 484.3 481.0 477.3
111.9
387.6 393.4 390.7 389.5 394.9 393.6 398.4 400.3 405.9 406.8 405.6 412.8 413.5 415.0
A 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.
1987
Item
1984
1985
1986
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Private residential real estate activity (thousands of units)
N E W UNITS
1
2
3
Permits authorized
1-family
2-or-more-family
4
5
6
7
8
9
1,682
922
759
1,733
957
777
1,750
1,071
679
1,676
1,204
472
1,719
1,150
569
1,598
1,058
540
1,493
1,009
484
1,517
1,039
478
1,487
993
494
1,502
1,023
479
1,502
992
510
1,463
977
486
1,469
983
486
Started
1-family
2-or-more-family
1,749
1,084
665
1,742
1,072
669
1,805
1,179
626
1,838
1,303
535
1,730
1,211
519
1,643
1,208
435
1,606
1,130
476
1,586
1,088
498
1,598
1,143
455
1,585
1,111
474
1,685
1,211
474
L,537 R
L,105 R
432'
1,639
1,110
529
Under construction, end of period 1 .
1-family
2-or-more-family
1,051
556
494
1,063
539
524
1,074
583
490
1,096
621
476
1,085
618
467
1,070
623
446
1,061
621
441
1,059
620
439
1,053
623
430
1,049
625
424
1,052 R
631
42 R
L,049 R
r
63 l
418
1,052
631
420
Completed
1-family
2-or-more-family
1,652
1,025
627
1,703
631
1,756
1,120
637
1,726
1,107
619
1,689
1,141
548
1,830
1,148
682
1,621
1,158
463
1,601
1,101
500
1,698
1,120
578
1,666
1,067
599
1,581 R
1,112'
469"
L,544 R
l,106R
438 R
1,529
1,056
473
13 Mobile homes shipped
296
284
244
231
228
227
222
231
245
233
244
238
229
Merchant builder activity in
1-family units
14 Number sold
15 Number for sale, end of period 1
639
358
688
350
748
361
740
358
720
358
733
359
649
355
641
359
671
359
675
361
658
361
672
359
664
360
10
11
12
•
Price (thousands of dollars)2
Median
16
Units sold
Average
17 Units sold
1,072
80.0
84.3
92.2
95.2
98.4
96.5
104.9
109.0
105.0
106.8
106.9
106.0
119.0
97.5
101.0
112.2
121.3
119.5
118.1
126.6
135.8
128.6
128.5
133.9
123.9
140.3
2,868
3,217
3,566
3,690
3,680
3,560
3,770
3,500
3,430
3,410
3,450
3,570
3,410
72.3
85.9
75.4
90.6
80.3
98.3
85.0
104.3
85.6
104.9
85.0
105.0
85.2
106.3
85.2
106.0
86.2
107.6
85.1
105.3
85.1
106.2
84.8
106.3
83.7
105.0
EXISTING UNITS ( 1 - f a m i l y )
18 Number sold
Price of units sold (thousands of dollars)
19 Median
20 Average
Value of new construction 3 (millions of dollars)
CONSTRUCTION
21 Total put in place
328,643
355,995
388,815
401,644
388,303
396,222
396,680
397,191
398,465
402,872
410,874
410,616
419,506
22 Private
23
Residential
24
Nonresidential, total
Buildings
7.5
Industrial
Commercial
26
27
Other
28
Public utilities and other
270,978
153,849
117,129
291,665
158,475
133,190
316,589
187,147
129,442
326,453
203,115
123,338
312,203
190,812
121,391
320,483
199,523
120,960
321,414
195,871
125,543
324,256
200,864
123,392
323,847
198,005
125,842
329,831
200,241
129,590
332,950
205,062
127,888
333,915
204,781
129,134
341,999
207,120
134,879
13,746
39,357
12,547
51,479
15,769
51,315
12,619
53,487
13,747
48,592
13,216
53,887
12,112
53,071
14,776
43,379
11,354
52,285
15,143
42,609
11,492
50,924
14,950
43,594
13,376
53,224
14,926
44,017
13,023
51,831
14,769
43,769
13,005
52,537
15,317
44,983
13,659
54,055
14,888
46,988
14,387
52,800
15,079
45,622
13,523
54,039
15,554
46,018
15,338
57,531
16,126
45,884
57,662
2,839
18,772
4,654
31,397
64,326
3,283
21,756
4,746
34,541
72,225
3,919
23,360
4,668
40,278
75,191
2,806
23,260
4,883
44,242
76,100
3,893
23,575
4,792
43,840
75,739
3,403
22,673
5,551
44,112
75,266
4,397
22,607
4,839
43,423
72,935
4,352
21,704
5,498
41,381
74,618
5,009
22,441
5,328
41,840
73,041
4,193
22,005
5,127
41,716
77,924
6,083
23,489
4,978
43,374
76,701
4,308
24,938
5,477
41,978
77,507
4,768
24,920
5,148
42,671
29 Public
30
Military
31
Highway
32 Conservation and development...
Other
33
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 (1) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices
of existing units, which are published by the National Association of Realtors. All
back and current figures are available from the 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 1988
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
1987
1987
Item
1986
Dec.
Index
level
Dec.
1987
(1967
= 100)1
1987
Dec.
Mar.
June
Sept.
Dec.
Aug.
Sept.
Oct.
Nov.
Dec.
CONSUMER PRICES 2
1
AU items
2
3 Energy items
4 All items less food and energy
5 Commodities
Services
6
1.1
4.4
6.2
4.6
3.6
3.2
.5
.2
.4
.3
.1
345.7
3.8
-19.7
3.8
1.4
5.2
3.5
8.2
4.2
3.5
4.6
2.5
26.1
5.2
5.1
5.3
6.5
7.9
4.0
3.8
3.8
1.4
5.0
3.7
3.0
4.2
4.0
-4.6
3.9
2.1
5.0
.0
1.7
.4
.1
.5
.5
-.5
.2
.3
.1
.4
-.9
.5
.5
.5
.1
.8
.3
.3
.3
.5
-1.1
.1
-.3
.4
336.7
370.4
346.8
275.1
424.3
-2.3
2.9
-38.0
3.0
2.1
2.2
-.2
10.2
2.6
1.3
4.3
-6.7
59.8
4.2
.4
3.9
12.7
5.5
-.2
1.2
2.7
-1.7
2.0
4.9
4.4
-2.0
-4.1
-13.8
1.7
-.6
.2
-1.1'
2.6
.4'
.3
.3
1.0'
-3.6'
.6
.7
-.2
-.1
-1.0
.0
-.4
.0
.3
-.8
.0
.1
-.3
-1.3
-1.9
.5
.2
296.8
282.2
501.0
269.0
314.2
-4.5
.1
5.6
5.3
7.8
3.3
5.7
4.6
4.6
5.0
4.1
8.2
.5
.3'
.0
.5
.5
.9
.4
.5
.1
.6
327.8
321.0
-1.4
-27.5
1.7
1.7
10.5
22.4
-10.3
50.0
15.9
34.8
11.4
31.9
-6.2
6.1
37.1
-1.8
-15.9
24.5
.0'
1.4
2.3'
.3'
-2.7
2.8'
1.3
-1.7
4.1
-3.0
-1.1
.9
1.3
-1.5
.6
237.5
589.4
302.4
PRODUCER PRICES
7 Finished goods
8 Consumer foods
9 Consumer energy
10 Other consumer goods
11 Capital equipment
12 Intermediate materials3
13 Excluding energy
14
15
16
Crude materials
Foods
Energy
Other
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental equivalence measure of homeownership after 1982.
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.
1987
1986
Account
1985
1986
1987
Q4
Qi
Q2
Q3
Q4
GROSS NATIONAL PRODUCT
1
4,010.3
4,235.0
4,486.2
4,288.1
4,377.7
4,445.1
4,524.0
4,598.0
By source
2 Personal consumption expenditures
3
4 Nondurable goods
5
2,629.4
368.7
913.1
1,347.5
2,799.8
402.4
939.4
1,458.0
2,966.0
413.9
980.4
1,571.6
2,858.6
419.8
946.3
1,492.4
2,893.8
396.1
969.9
1,527.7
2,943.7
409.0
982.1
1,552.6
3,011.3
436.8
986.4
1,588.1
3,015.1
413.8
983.4
1,618.0
641.6
631.6
442.6
152.5
290.1
189.0
671.0
655.2
436.9
137.4
299.5
218.3
716.4
670.6
442.1
134.1
308.0
228.5
660.2
666.6
439.7
132.9
306.7
226.9
699.9
648.2
422.8
128.7
294.1
225.4
702.6
662.3
434.6
129.7
304.9
227.7
707.4
684.5
456.6
137.1
319.5
227.9
755.5
687.4
454.3
140.7
313.6
233.1
10.0
13.6
15.7
16.8
45.7
36.6
-6.4
5.1
51.6
48.7
40.3
27.3
22.9
11.1
68.1
59.2
14 Net exports of goods and services
15
16 Imports
-79.2
369.9
449.2
-105.5
376.2
481.7
-119.9
426.7
546.7
-116.9
383.3
500.2
-112.2
397.3
509.5
-118.4
416.5
534.8
-123.7
439.2
562.9
-125.5
453.9
579.4
17 Government purchases of goods and services
18
19
818.6
353.9
464.7
869.7
366.2
503.5
923.8
380.6
543.2
886.3
368.6
517.7
896.2
366.9
529.3
917.1
379.6
537.6
929.0
382.1
546.9
952.8
393.7
559.1
4,000.3
1,637.9
704.3
933.6
1,969.2
403.1
4,219.3
1,693.8
726.8
967.0
2,116.2
425.0
4,440.4
1,780.6
773.9
1,006.6
2,270.4
435.2
4,294.6
1,698.9
737.3
961.6
2,160.0
429.3
4,326.0
1,738.7
747.0
991.7
2,212.0
426.9
4,404.8
1,763.5
756.7
1,006.8
2,252.2
429.4
4,501.1
1,798.3
785.7
1,012.6
2,289.3
436.4
4,529.9
1,821.8
806.4
1,015.4
2,328.2
448.0
10.0
7.3
2.7
15.7
4.8
10.9
45.7
26.5
19.2
-6.4
-4.5
-1.9
51.6
35.2
16.5
40.3
22.1
18.2
22.9
-1.9
24.8
68.1
50.7
17.4
3,607.5
3,713.3
3,819.6
3,731.5
3,772.2
3,795.3
3,835.9
3,875.1
30
3,229.9
3,422.0
3,635.9
3,471.0
3,548.3
3,593.3
3,659.0
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
2,370.8
1,974.7
372.3
1,602.6
396.1
203.8
192.3
2,504.9
2,089.1
394.8
1,694.3
415.8
214.7
201.1
2,647.5
2,212.7
421.5
1,791.3
434.8
224.6
210.2
2,552.0
2,128.5
403.8
1,724.7
423.5
219.1
204.4
2,589.9
2,163.3
412.2
1,751.1
426.6
220.0
206.7
2,623.4
2,191.4
418.1
1,773.3
432.0
222.5
209.5
2,663.5
2,226.5
424.5r
l,801.9 r
437.0
225.9
211.1
2,713.4
2,269.9
431.0
1,838.8
443.5
229.9
213.5
257.3
227.6
29.7
289.8
252.6
37.2
327.8
279.1
48.8
297.8
261.2
36.6
320.9
269.7
51.3
323.1
275.8
47.3
322.7
282.1
40.6
344.6
288.7
55.8
6 Gross private domestic investment
7 Fixed investment
Nonresidential
8
9
Structures
10
Producers' durable equipment
Residential structures
11
Change in business inventories
1?
13
By major type of product
70
?1
77
73
74
25
Nondurable
26 Change in business inventories
71 Durable goods
28 Nondurable goods
29
MEMO
Total GNP in 1982 dollars
NATIONAL INCOME
38 Proprietors'income 1
39 Business and professional
40
41 Rental income of persons 2
9.0
16.7
18.5
18.4
20.0
18.9
17.3
18.1
42 Corporate profits1 3
43 Profits before tax
44 Inventory valuation adjustment
45 Capital consumption adjustment
277.6
224.8
-.7
53.5
284.4
231.9
6.5
46.0
305.3
274.6
-17.4
48.1
281.1
247.9
-8.9
42.1
294.0
257.0
-11.3
48.2
296.8
268.7
-20.0
48.0
314.9
284.9
-17.6
47.7
n.a.
n.a.
-20.7
48.5
46 Net interest
315.3
326.1
336.7
321.7
323.6
331.1
340.6
351.5
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
A52
Domestic Nonfinancial Statistics • March 1988
2.17
PERSONAL INCOME A N D SAVING
Billions of c u r r e n t dollars; quarterly data are at seasonally a d j u s t e d annual rates. E x c e p t i o n s n o t e d .
1987
1986
Account
1985
1986
1987
Q4
Ql
Q2
Q3
Q4
PERSONAL INCOME AND SAVING
1 Total personal income
3,327.0
3,534.3
3,745.8
3,593.6
3,662.0
3,708.6
3,761.0
3,851.5
2 Wage and salary disbursements
3 Commodity-producing industries
Manufacturing
4
5 Distributive industries
6
Service industries
7 Government and government enterprises
1,974.9
609.2
460.9
473.0
520.4
372.3
2,089.1
623.3
470.5
497.1
573.9
394.8
2,212.7
641.2
484.0
522.8
627.3
421.5
2,128.5
628.4
474.5
504.7
591.6
403.8
2,163.3
632.9
477.2
511.5
606.7
412.2
2,191.4
635.0
479.0
518.9
619.3
418.1
2,226.1
641.8
485.1
526.3
633.9
424.2
2,270.2
655.1
494.8
534.4
649.3
431.4
192.3
257.3
227.6
29.7
9.0
76.3
476.5
489.7
253.4
201.1
289.8
252.6
37.2
16.7
81.2
497.6
518.3
269.2
210.2
327.8
279.1
48.8
18.5
87.5
515.8
543.0
282.9
204.4
297.8
261.2
36.6
18.4
82.9
496.8
526.6
273.5
206.7
320.9
269.7
51.3
20.0
84.5
499.8
533.7
278.0
209.5
323.1
275.8
47.3
18.9
86.3
506.3
541.5
282.3
211.1
322.7
282.1
40.6
17.3
88.7
520.0
545.8
284.4
213.5
344.6
288.7
55.8
18.1
90.5
537.2
551.1
286.8
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income1
Business and professional
Farm 1
Rental income of persons
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
148.9
159.6
169.9
161.8
166.7
168.4
170.7
173.7
3,327.0
3,534.3
3,745.8
3,593.6
3,662.0
3,708.6
3,761.0
3,851.5
485.9
512.2
564.7
532.0
536.1
578.0
565.7
578.9
20 EQUALS: Disposable personal income
2,841.1
3,022.1
3,181.1
3,061.6
3,125.9
3,130.6
3,195.3
3,272.6
21
LESS: Personal outlays
2,714.1
2,891.5
3,060.9
2,952.6
2,987.5
3,037.4
3,106.5
3,112.2
22 EQUALS: Personal saving
127.1
130.6
120.2
109.0
138.4
93.2
88.8
160.4
15,073.7
9,830.2
10,622.0
4.5
15,369.6
10,142.8
10,947.0
4.3
15,666.9
10,234.6
10,976.0
3.8
15,387.6
10,228.8
10,956.0
3.6
15,523.4
10,188.9
11,008.0
4.4
15,586.4
10,215.6
10,865.0
3.0
15.714.4
10.326.5
10,958.0
2.8
15,836.1
10,202.7
11,074.0
4.9
27 Gross saving
531.3
532.0
566.4
515.3
554.3
551.3
559.3
n.a.
28
29
30
31
664.2
127.1
99.6
-.7
679.8
130.6
92.6
6.5
673.6
120.2
74.0
-17.4
653.4
109.0
78.5
-8.9
683.8
138.4
75.6
-11.3
639.9
93.2
70.1
-20.0
648.7'
88.8
76.8
-17.6
n.a.
160.4
n.a.
-20.7
269.1
168.5
282.8
173.8
296.3
183.1
289.3
176.6
291.8
178.0
294.5
182.1
297.8
185.3
301.1
187.1
-132.9
-196.0
63.1
-147.8
-204.7
56.8
-107.2
-152.6
45.4
-138.1
-188.7
50.6
-129.5
-170.5
41.0
-88.6
-139.2
50.6
-89.3'
-135.8'
46.5
525.7
527.1
559.6
503.7
552.1
548.1
548.4
589.6
641.6
-115.9
671.0
-143.9
716.4
-156.8
660.2
-156.5
699.9
-147.7
702.6
-154.5
707.4
-159.0
755.5
-165.9
-5.6
-4.9
-6.8
-11.6
-2.2
-3.1
-10.9
-10.9
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)
GROSS SAVING
Gross private saving
Personal saving
Undistributed corporate profits
Corporate inventory valuation adjustment
Capital consumption allowances
32 Corporate
33 Noncorporate
34
35
36
Government surplus, or deficit ( - ) , national income and
product accounts
Federal
State and local
37 Gross investment
38 Gross private domestic
39 Net foreign
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE. Survey of Current Business (Department of Commerce).
n.a.
n.a.
n.a.
Summary Statistics
3.10
U.S. INTERNATIONAL TRANSACTIONS
A53
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
1986
Item credits or debits
1 Balance on current account
2 Not seasonally adjusted
3 Merchandise trade balance 2
Merchandise exports
4
5
Merchandise imports
6 Military transactions, net
7 Investment income, net 3
8 Other service transactions, net
9
Remittances, pensions, and other transfers
10 U.S. government grants (excluding military)
1984
1985
1987
1986
Q3
Q4
QL
Q2
Q3"
-37,977
-36,398
-38,595
57,021
-95,616
-495
4,492
759
-1,151
-2,987
-36,784
-33,435
-38,757
56,992
-95,749
-37
5,500
-387
-1,017
-2,086
-41,190
-42,006
-39,558
60,097
-99,655
29
1,577
-146
-865
-2,227
-43,378
-48,525
-39,832
65,263
-105,095
-443
-267
95
-872
-2,059
-107,013
-116,394
-141,352
-112,522
219,900
332,422
-1,942
18,490
1,138
-3,637
-8,541
-122,148
215,935
-338,083
-3,338
25,398
-1,005
-4,079
-11,222
-144,339
224,361
-368,700
-3,662
20,844
1,463
-3,885
-11,772
-36,583
-40,230
-37,115
56,534
-93,649
-815
5,339
342
-875
-3,459
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
-5,476
-2,831
-1,920
-1,454
15
225
-177
232
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
-3,130
0
-979
-995
-1,156
-3,858
0
-897
908
-3,869
312
0
-246
1,500
-942
280
0
163
508
-391
132
0
-31
283
-120
1,956
0
76
606
1,274
3,419
0
-171
335
3,255
32
0
-210
407
-165
17 Change in U.S. private assets abroad (increase, - ) 3
18 Bank-reported claims
19 Nonbank-reported claims
20 U.S. purchase of foreign securities, net
21 U.S. direct investments abroad, net 3
-13,685
-11,127
5,019
-4,756
-2,821
-24,711
-1,323
1,361
-7,481
-17,268
-94,374
-59,039
-3,986
-3,302
-28,047
-23,304
-18,878
685
620
-5,731
-32,351
-31,800
170
3,113
-3,834
13,352
25,686
-1,163
-1,345
-9,826
-18,137
-15,685
2,603
384
-5,439
-29,467
-21,249
23
24
25
26
27
22 Change in foreign official assets in the United States
(increase, +)
U.S. Treasury securities
Other U.S. government obligations
Other U.S. government liabilities
Other U.S. liabilities reported by U.S. banks
Other foreign official assets
2,987
4,690
13
586
555
-2,857
-1,140
-838
-301
823
645
-1,469
34,698
34,515
-1,214
1,723
554
-880
15,551
12,167
-276
999
2,963
-302
1,003
4,572
-117
-607
-2,435
-410
13,953
12,145
-62
-1,381
3,611
-360
10,070
11,084
256
-1,504
547
-313
359
1,200
714
-506
-425
-624
28 Change in foreign private assets in the United States
(increase, +) 3
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
99,481
33,849
4,704
23,001
12,568
25,359
131,012
41,045
-450
20,433
50,962
19,022
178,689
77,350
-2,791
8,275
70,802
25,053
54,040
30,360
-80
609
17,074
6,077
57,428
34,604
1,035
-3,074
12,269
12,594
12,802
-13,614
1,761
-1,570
18,499
7,726
39,494
14,823
1,526
-2,211
15,870
9,486
67,650
48,872
-2,832
12,669
8,941
0
26,837
0
17,920
0
23,947
0
-8,530
-4,153
0
11,750
3,904
0
-5,504
2,652
0
6,521
-2,009
0
4,572
-5,177
26,837
17,920
23,947
-4,377
7,846
-8,156
8,530
9,749
-3,130
-3,858
312
280
132
1,956
3,419
32
2,401
-1,963
32,975
14,552
1,610
15,334
11,574
865
-4,504
-6,709
-8,508
-3,023
-5,195
-2,901
-2,651
-1,681
153
46
101
19
53
8
26
10
29
30
31
32
33
34 Allocation of SDRs
35 Discrepancy
36 Owing to seasonal adjustments
37 Statistical discrepancy in recorded data before seasonal
adjustment
-930
-7,288
MEMO
Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in the United States (increase, +)
excluding line 25
40 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 22
above)
41 Transfers under military grant programs (excluded from
lines 4, 6, and 10 above)
38
39
1. Seasonal factors are 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.
4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE . Data are from Bureau of Economic Analysis, Survey of Current Business
(Department of Commerce).
A54
3.11
International Statistics • March 1988
U.S. FOREIGN TRADE 1
Millions of dollars; monthly data are not seasonally adjusted.
1987
Item
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments, f.a.s. value
2 GENERAL IMPORTS including
merchandise for immediate
consumption plus entries into
bonded warehouses, c.i.f. value
3 Trade balance
1984
223,976
1985
218,815
1986
226,808
June
July
Aug.
Sept.
Oct.
Nov.
20,784
21,126
21,008
20,222
20,986
21,752
23,799
346,364
352,463
382,964
34,822
36,838
37,483
35,905
35,062
39,383
37,016
-122,389
-133,648
-156,156
-14,039
-15,711
-16,475
-15,683
-14,076
-17,631
-13,218
1. The Census basis data differ from merchandise trade data shown in table
3.10, U.S. International Transactions Summary, for reasons of coverage and
timing. On the export side, the largest adjustment is 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 transac-
3.12
May
tions; military payments are excluded and shown separately as indicated above.
As of Jan. 1, 1987 census data are released 45 days after the end of the month.
Total exports and the trade balance reflect adjustments for undocumented exports
to Canada.
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
1987
Type
1984
1985
1986
June
July
Aug.
Sept.
Oct.
Nov.
Dec. p
45,798
1 Total
34,934
43,186
48,511
45,140
44,318
45,944
45,070
46,200
46,779
2 Gold stock, including
Exchange Stabilization Fund 1
11,096
11,090
11,064
11,069
11,069
11,068
11,075
11,085
11,082
11,078
5,641
7,293
8,395
8,856
8,813
9,174
9,078
9,373
9,937
10,283
11,541
11,947
11,730
11,313
10,964
11,116
10,918
11,157
11,369
11,349
6,656
12,856
17,322
13,902
13,472
14,586
13,999
14,585
14,391
13,088
3 Special drawing rights2'3
in International Mone4 Reserve position
tary Fund 2
5
Foreign currencies 4
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
3.13
in the IMF also are valued on this basis beginning July 1974.
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus transactions in SDRs.
4. Valued at current market exchange rates.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS 1
Millions of dollars, end of period
1987
Assets
1984
1985
1986
June
1 Deposits
Assets held in custody
2 U.S. Treasury securities
3 Earmarked gold3
Aug.
Sept.
Oct.
Nov.
Dec.
p
267
480
287
318
261
294
456
236
351
244
118,000
14,242
121,004
14,245
155,835
14,048
176,657
14,034
171,269
14,010
179,484
14,022
179,097
14,015
182,072
13,998
187,767
13,965
195,126
13,919
1. Excludes deposits and U.S. Treasury securities held for international and
regional organizations.
2. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
July
3. Earmarked gold and the gold stock are valued at $42.22 per fine troy ounce,
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 Data 1
Millions of dollars, end of period
1987
May
June
July
Aug.
Sept.
Oct.
Nov."
All foreign countries
1 Total, all currencies
2 Claims on United States
3 Parent bank
4 Other banks in United States
.5 Nonbanks
6 Claims on foreigners
7 Other branches of parent bank
8 Banks
9 Public borrowers
10 Nonbank foreigners
453,656
458,012
456,628
487,599
475,188
470,391
473,540
489,895'
520,858'
524,979
113,393
78,109
13,664
21,620
320,162
95,184
100,397
23,343
101,238
119,706
87,201
13,057
19,448
315,676
91,399
102,960
23,478
97,839
114,563
83,492
13,685
17,386
312,955
96,281
105,237
23,706
87,731
127,009
92,194
17,048
17,767
328,280
101,309
114,101
23,295
89,575
123,400
89,376
15,981
18,043
319,546
101,326
107,747
22,590
87,883
123,687
89,793
14,303
19,591
314,078
%,582
110,124
21,412
85,960
124,737''
89,958
14,739'
20,040'
314,727'
97,988
108,068'
21,537
87,134
137,218'
101,635'
15,949'
19,634'
319,365'
103,277
108,230'
21,463'
86,395'
137,454'
98,683'
17,826
20,945
347,574'
117,107'
118,051'
21,843'
90,573'
140,245
102,161
16,701
21,383
346,182
116,945
115,372
22,131
91,734
20,101
22,630
29,110
32,310
32,242
32,626
34,076'
33,312'
35,83c
38,552
12 Total payable in U.S. dollars
350,636
336,520
317,487
336,414
329,499
322,300
322,286
340,733'
354,122'
352,584
13 Claims on United States
14 Parent bank
15 Other banks in United States
16 Nonbanks
17 Claims on foreigners
18 Other branches of parent bank
19 Banks
20 Public borrowers
21 Nonbank foreigners
111,426
77,229
13,500
20,697
228,600
78,746
76,940
17,626
55,288
116,638
85,971
12,454
18,213
210,129
72,727
71,868
17,260
48,274
110,620
82,082
12,830
15,708
195,063
72,197
66,421
16,708
39,737
121,551
90,159
15,412
15,980
201,450
75,014
69,525
16,812
40,099
118,411
87,540
14,669
16,202
198,465
75,771
67,287
16,271
39,136
118,563
87,779
12,794
17,990
190,590
72,515
65,673
15,062
37,340
118,964
87,844
12,830r
18,290'
189,958
73,327
64,106
15,115
37,410
131,684'
99,776'
13,942'
17,966'
195,075'
77,699
64,506
14,942
37,928'
130,894'
%,492'
15,627
18,775
209,494'
87,247'
68,888'
14,889'
38,470'
133,464
99,397
14,632
19,435
203,745
85,992
65,728
14,854
37,171
10,610
9,753
11,804
13,413
12,623
13,147
13,364
13,974'
13,734'
15,375
149,836
163,472'
167,726
32,581
27,128
1,349
4,104
108,562
33,334
38,390
4,725
32,113
33,344'
27,15<y
1,870
4,324
120,639'
37,%2
42,929
4,881
34,867'
34,959
29,106
1,694
4,159
121,920
39,585
41,649
5,272
35,414
11 Other assets
22 Other assets
United Kingdom
23 Total, all currencies
144,385
148,599
140,917
154,371
146,678
149,760
148,039
24 Claims on United States
25 Parent bank
26 Other banks in United States
27 Nonbanks
28 Claims on foreigners
29 Other branches of parent bank
30 Banks
31 Public borrowers
32 Nonbank foreigners
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
24,599
19,085
1,612
3,902
109,508
33,422
39,468
4,990
31,628
34,427
28,935
1,507
3,985
112,997
33,412
41,241
5,234
33,110
30,859
25,944
1,194
3,721
107,407
32,641
37,745
4,684
32,337
32,694
27,288
1,537
3,869
108,732
31,241
41,219
4,617
31,655
31,377
25,627
1,585
4,165
108,293
30,794
40,082
4,761
32,656
33 Other assets
34 Total payable in U.S. dollars
35 Claims on United States
36 Parent bank
37 Other banks in United States
38 Nonbanks
39 Claims on foreigners
40 Other branches of parent bank
41 Banks
42 Public borrowers
43 Nonbank foreigners
44 Other assets
4,882
5,225
6,810
6,947
8,412
8,334
8,369
8,693
9,489'
10,847
112,809
108,626
95,028
104,622
97,672
99,170
96,510
99,736
105,515'
107,215
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
23,193
18,526
1,475
3,192
68,138
26,361
23,251
3,677
14,849
32,542
28,228
1,157
3,157
68,469
25,921
23,263
3,785
15,500
29,252
25,286
950
3,016
64,676
25,409
21,355
3,470
14,442
31,076
26,661
1,294
3,121
64,024
23,827
22,975
3,400
13,822
29,519
24,853
1,309
3,357
63,265
23,155
22,646
3,473
13,991
30,791
26,423
1,105
3,263
64,561
25,600
21,522
3,377
14,062
31,260'
26,29c
1,504
3,466
69,836
28,370
22,941
3,426
15,099
32,888
28,164
1,408
3,316
69,311
29,613
21,833
3,472
14,393
2,996
3,059
3,697
3,611
3,744
4,070
3,726
4,384
4,4^
5,016
Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
47 Parent bank
48 Other banks in United States
49 Nonbanks
50 Claims on foreigners
51 Other branches of parent bank
52 Banks
53 Public borrowers
54 Nonbank foreigners
55 Other assets
56 Total payable in U.S. dollars
146,811
142,055
142,592
141,832
142,170
140,512
139,986
151,909
156,752
154,901
77,2%
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
78,048
54,575
11,156
12,317
60,005
17,296
27,476
7,051
8,182
73,445
46,463
14,552
12,430
63,089
15,775
31,417
7,304
8,593
72,541
45,891
13,684
12,966
65,280
18,873
30,987
7,025
8,395
72,772
46,256
11,824
14,692
63,027
17,493
30,372
7,046
8,116
72,558
45,697
12,111'
14.75C
62,336
18,228
29,160
6,873
8,075
81,679
53,668
13,538'
14,473'
65,619
18,698
31,690
6,987
8,244
83,187
53,093
14,721
15,373
68,710
18,936
35,012'
7,017
7,745'
82,629
52,563
13,980
16,086
67,1%
18,905
33,477
7,195
7,619
3,917
3,309
4,539
5,298
4,349
4,713
5,092
4,611
141,562
136,794
136,813
133,482
135,323
131,636
130,985
142,385
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
4,855
145,642'
5,076
144,326
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
A56
3.14
International Statistics • March 1988
Continued
1987
May
June
July
Aug.
Sept.
Oct.
Nov."
All foreign countries
57 Total, all currencies
453,656
458,012
456,628
487,599
475,188
470,391
473,540
489,895'
520,858'
524,979
58 Negotiable CDs
59 To United States
60
Parent bank
61
Other banks in United States
62
Nonbanks
37,725
147,583
78,739
18,409
50,435
34,607
155,538
83,914
16,894
54,730
31,629
151,632
82,561
15,646
53,425
34,360
149,970
74,324
17,134
58,512
31,776
150,115
78,152
16,814
55,149
32,993
143,434
71,543
15,005
56,886
33,648
141,072'
73,520
15,289
52,263r
35,724
152,903'
79,704'
17,229'
55,970
36,796'
156,596'
79,590'
18,878
58,128
34,502
156,006
83,307
18,843
53,856
63 To foreigners
Other branches of parent bank
64
65
Banks
66
Official institutions
67
Nonbank foreigners
68 Other liabilities
247,907
93,909
78,203
20,281
55,514
20,441
245,939
89,529
76,814
19,520
60,076
21,928
253,775
95,146
77,809
17,835
62,985
19,592
284,308
101,769
90,338
23,058
69,143
18,961
274,061
100,826
81,229
22,264
69,742
19,236
274,407
95,376
87,734
21,528
69,769
19,557
278,883'
97,908
87,449
21,016
72,510'
19,937
280,651
103,921
85,512
20,116
71,102
20,617'
306,472'
m.ssy
98,025'
20,235
73,653'
20,994'
312,125
116,688
97,591
21,777
76,069
22,346
69 Total payable in U.S. dollars
367,145
353,712
336,406
347,312
340,985
334,218
333,673
352,002'
365,242'
360,805
70 Negotiable CDs
71 To United States
72
Parent bank
Other banks in United States
73
74
Nonbanks
35,227
143,571
76,254
17,935
49,382
31,063
150,162
80,888
16,264
53,010
28,466
143,650
78,472
14,609
50,569
30,763
141,151
69,839
15,968
55,344
27,929
141,667
74,009
15,602
52,056
28,781
134,731
66,874
13,895
53,962
29,634
132,066'
68,740
14,086
49,240'
30,933'
142,852'
74,427'
15,812'
52,613'
32,117
145,324'
74,109'
17,323
53,892
30,075
143,026
77,226
17,169
48,631
75 To foreigners
Other branches of parent bank
76
77
Banks
78
Official institutions
79
Nonbank foreigners
80 Other liabilities
178,260
77,770
45,123
15,773
39,594
10,087
163,583
71,078
37,365
14,359
40,781
8,904
156,806
71,181
33,850
12,371
39,404
7,484
167,762
74,764
36,231
16,068
40,699
7,636
163,505
74,202
31,812
15,985
41,506
7,884
162,766
70,911
35,250
15,806
40,799
7,940
163,723'
72,620
35,104
15,527
40,472'
8,250
169,342'
78,036
35,202
14,209
41,895'
8,875'
179,011'
84,208'
40,078
13,323
41,402'
8,79C
178,801
84,409
38,510
14,119
41,763
8,903
United Kingdom
144,385
148,599
140,917
154,371
146,678
149,760
148,039
149,836
163,472
167,726
82 Negotiable CDs
83 To United States
84
Parent bank
85
Other banks in United States
86
Nonbanks
81 Total, all currencies
34,413
25,250
14,651
3,125
7,474
31,260
29,422
19,330
2,974
7,118
27,781
24,657
14,469
2,649
7,539
30,226
26,204
15,145
2,273
8,786
27,511
24,512
14,745
2,109
7,658
28,590
24,347
14,010
2,021
8,316
29,363
22,202'
13,234
1,875
7,093'
31,451
22,462
13,357
2,073
7,032
32,523
22,868
12,251
2,407
8,210
30,475
24,961
14,018
2,103
8,840
87 To foreigners
88
Other branches of parent bank
89 Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities
77,424
21,631
30,436
10,154
15,203
7,298
78,525
23,389
28,581
9,676
16,879
9,392
79,498
25,036
30,877
6,836
16,749
8,981
89,760
26,367
35,282
10,004
18,107
8,181
86,041
25,350
32,036
9,748
18,907
8,614
87,942
23,572
35,647
9,241
19,482
8,881
87,745'
23,379
34,414
9,670
20,282'
8,729
86,813
26,094
31,681
10,387
18,651
9,110
98,215
29,718
38,502
10,248
19,747
9,866'
101,686
30,727
37,690
12,000
21,269
10,604
93 Total payable in U.S. dollars
117,497
112,697
99,707
106,093
100,031
101,593
99,459
102,325
108,440'
108,481
94 Negotiable CDs
95 To United States
Parent bank
%
97
Other banks in United States
Nonbanks
98
33,070
24,105
14,339
2,980
6,786
29,337
27,756
18,956
2,826
5,974
26,169
22,075
14,021
2,325
5,729
28,345
23,474
14,528
2,027
6,919
25,695
21,850
14,252
1,899
5,699
26,397
21,689
13,399
1,776
6,514
27,264
19,578'
12,608
1,694
5,276'
28,776
19,528
12,609
1,883
5,036
29,991
18,8^
11,283'
2,105
5,431
27,999
19,800
12,792
1,789
5,219
99 To foreigners
1(K) Other branches of parent bank
Banks
101
102 Official institutions
103 Nonbank foreigners
104 Other liabilities
56,923
18,294
18,356
8,871
11,402
3,399
51,980
18,493
14,344
7,661
11,482
3,624
48,138
17,951
15,203
4,934
10,050
3,325
51,116
18,430
15,555
7,214
9,917
3,158
49,089
17,654
13,566
7,283
10,586
3,397
50,294
16,171
16,330
7,203
10,590
3,213
49,479'
15,565
15,767
7,872
10,275'
3,138
50,386
17,994
14,359
8,060
9,973
3,635
55,209
20,018
17,786
7,115
10,290
4,421'
56,443
20,826
17,024
7,970
10,623
4,239
Bahamas and Caymans
105 Total, all currencies
146,811
142,055
142,592
141,832
142,170
140,512
139,986
151,909
156,752
154,901
106 Negotiable CDs
107 To United States
108 Parent bank
109 Other banks in United States
Nonbanks
110
615
102,955
47,162
13,938
41,855
610
103,813
44,811
12,778
46,224
847
105,248
48,648
11,715
44,885
1,092
101,695
39,826
13,411
48,458
1,067
103,007
43,288
13,382
46,337
1,119
99,240
39,842
11,989
47,409
975
97,244
40,889
12,276
44,079
886
107,245
45,890
13,579'
47,776'
890
111,925
48,793
14,857
48,275
673
107,967
49,568
15,179
43,220
111 To foreigners
112 Other branches of parent bank
Banks
113
114 Official institutions
115
Nonbank foreigners
116 Other liabilities
40,320
16,782
12,405
2,054
9,079
2,921
35,053
14,075
10,669
1,776
8,533
2,579
34,400
12,631
8,617
2,719
10,433
2,097
36,836
13,354
9,900
3,072
10,510
2,209
36,004
14,023
7,943
3,185
10,853
2,092
37,988
14,803
9,395
3,263
10,527
2,165
39,437
16,465
9,514
2,935
10,523
2,330
41,277
16,925
10,395
1,786
12,171
2,501
42,147
17,032
11,587
2,113
11,415
1,790
44,459
17,691
12,860
2,023
11,885
1,802
143,582
138,322
138,774
136,843
137,763
135,376
134,354
145,166'
149,273'
146,286
117 Total payable in U.S. dollars
Summary Statistics
3.15
A57
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1987r
Item
1 Total1
2
3
4
5
6
7
8
9
10
11
12
By type
Liabilities reported by banks in the United States
U.S. Treasury bills and certificates
U.S. Treasury bonds and notes
Marketable
Nonmarketable 4
U.S. securities other than U.S. Treasury securities
By area
Western Europe 1
Canada
Latin America and Caribbean
Other countries 6
1985
1986
June
July
Aug.
Sept.
Oct.
Nov."
178,380
211,782
236,539
238,797
232,370
237,728
239,534
252,077
253,737
26,734
53,252
27,868
75,650
31,941
81,553
32,079
80,663
31,513
73,435
29,638
78,210
31,869
75,701
37,913
78,819
33,962
82,542
77,154
3,550
17,690
91,368
1,300
15,596
106,520
1,300
15,225
110,238
700
15,117
112,490
500
14,432
115,101
300
14,479
116,462
300
15,202
118,898
300
16,147
120,755
300
16,178
74,447
1,315
11,148
86,448
1,824
3,199
88,623
2,004
8,372
105,868
1,503
5,412
108,707
3,482
7,942
109,464
1,627
5,317
111,625
3,502
7,583
108,702
1,400
5,985
107,823
3,559
7,904
105,505
1,590
5,989
106,873
4,189
8,712
109,529
1,837
6,589
108,248
4,529
8,561
109,482
1,618
7,094
116,100
5,152
9,078
114,160
1,474
6,109
117,2%
4,884
8,877
116,464
1,562
4,655
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
3.16
May
bonds and notes payable in foreign currencies.
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
NOTE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States.
LIABILITIES TO A N D CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies 1
Millions of dollars, end of period
1986
Item
1 Banks' own liabilities
2 Banks' own claims
3 Deposits
4 Other claims
5 Claims of banks' domestic customers
1983
5,219
7,231
2,731
4,501
1,059
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
2. Assets owned by customers of the reporting bank located in the United
1984
8,586
11,984
4,998
6,986
569
1987'
1985
15,368
16,294
8,437
7,857
580
Dec.
Mar.
June
Sept.
29,702
26,180
14,129
12,052
2,507
37,873
34,153
16,102
18,050
2,012
38,470
34,006
12,735
21,271
889
45,265
41,047
15,849
25,198
1,067
States that represent claims on foreigners held by reporting banks for the accounts
of the domestic customers.
A58
3.17
International Statistics • March 1988
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Reported by Banks in the United States
Millions of dollars, end of period
1987r
Holder and type of liability
1984
1985
1986'
May
July
Aug.
Sept.
Oct.
1 All foreigners
407,306
435,726
540,996
565,469
551,362
545,630
555,185
584,448
605,022
2 Banks' own liabilities
3 Demand deposits
4 Time deposits'
5 Other.
6 Own foreign offices
306,898
19,571
110,413
26,268
150,646
341,070
21,107
117,278
29,305
173,381
406,485
23,789
130,891
42,705
209,100
424,033
22,846
132,886
49,187
219,114
410,834
22,837
133,393
42,385
212,219
410,881
20,219
134,127
44,721
211,814
415,824
22,117
137,861
42,317
213,530
446,520
21,150
148,354
48,903
228,113
462,902
22,906
152,292
51,785
235,919
100,408
76,368
94,656
69,133
134,511
90,398
141,436
95,959
140,528
93,695
134,749
88,193
139,361
92,705
137,928
89,747
142,120
91,374
18,747
5,293
17,964
7,558
15,417
28,6%
15,790
29,687
16,371
30,462
15,632
30,924
15,259
31,397
16,042
32,139
15,923
34,823
11 Nonmonetary international and regional
organizations
4,454
5,821
5,807
5,907
4,005
5,946
5,332
7,845
3,797
12 Banks' own liabilities
13 Demand deposits
14 Time deposits
15 O t h e r .
2,014
254
1,267
493
2,621
85
2,067
469
3,958
199
2,065
1,693
4,243
106
964
3,173
2,515
72
987
1,456
2,367
76
599
1,692
2,498
44
807
1,647
4,674
80
1,235
3,358
1,883
107
986
789
16 Banks' custody liabilities4
17 U.S. Treasury bills and certificates
18 Other negotiable and readily transferable
instruments
19 Other
2,440
916
3,200
1,736
1,849
259
1,664
440
1,490
266
3,579
2,339
2,834
1,635
3,171
1,793
1,914
285
1,524
0
1,464
0
1,590
0
1,224
1,224
1,240
0
1,193
6
1,378
0
1,624
6
7 Banks' custody liabilities4
8
U.S. Treasury bills and certificates 5
Other negotiable and readily transferable
9
instruments
10 Other
8
0
0
86,065
79,985
103,569
113,494
112,742
104,948
107,848
107,570
116,732
21 Banks' own liabilities
22 Demand deposits
23 Time deposits'
24 O t h e r .
19,039
1,823
9,374
7,842
20,835
2,077
10,949
7,809
25,427
2,267
10,497
12,663
29,079
2,086
11,355
15,637
28,690
1,743
13,266
13,680
28,343
1,711
13,567
13,065
26,342
1,907
13,489
10,946
28,169
1,800
14,246
12,123
34,370
1,905
16,474
15,991
25 Banks' custody liabilities4
26 U.S. Treasury bills and certificates5
27 Other negotiable and readily transferable
instruments
28 Other
67,026
59,976
59,150
53,252
78,142
75,650
84,415
81,553
84,052
80,663
76,605
73,435
81,505
78,210
79,401
75,701
82,362
78,819
6,966
84
5,824
75
2,347
145
2,715
147
3,141
248
2,950
220
3,151
144
3,540
160
3,318
225
29 Banks9
248,893
275,589
351,745
366,359
357,145
358,378
362,883
388,625
405,492
30 Banks' own liabilities
31 Unaffiliated foreign banks
32
Demand deposits
33
Time deposits'
34
Other
35 Own foreign offices3
225,368
74,722
10,556
47,095
17,071
150,646
252,723
79,341
10,271
49,510
19,561
173,381
310,166
101,066
10,303
64,232
26,531
209,100
325,171
106,057
10,800
67,459
27,799
219,114
314,621
102,402
10,293
67,045
25,063
212,219
315,0%
103,283
8,741
66,865
27,677
211,814
319,883
106,353
9,901
69,588
26,864
213,530
344,886
116,772
9,801
77,743
29,228
228,113
359,171
123,252
11,364
80,095
31,793
235,919
36 Banks' custody liabilities4
37 U.S. Treasury bills and certificates
38 Other negotiable and readily transferable
instruments
39 Other
23,525
11,448
22,866
9,832
41,579
9,984
41,187
9,774
42,524
9,066
43,281
9,142
43,000
9,100
43,739
9,206
46,321
8,961
7,236
4,841
6,040
6,994
5,165
26,431
4,213
27,201
5,611
27,848
5,850
28,289
5,320
28,581
5,221
29,312
5,454
31,906
40 Other foreigners
67,894
74,331
79,875
79,710
77,470
76,359
79,122
80,408
79,001
41 Banks' own liabilities
42 Demand deposits
43 Time deposits
44 O t h e r .
60,477
6,938
52,678
861
64,892
8,673
54,752
1,467
66,934
11,019
54,097
1,818
65,540
9,854
53,109
2,578
65,009
10,729
52,095
2,185
65,075
9,691
53,0%
2,287
67,101
10,264
53,977
2,860
68,791
9,468
55,130
4,193
67,478
9,530
54,736
3,211
7,417
4,029
9,439
4,314
12,941
4,506
14,169
4,192
12,462
3,701
11,284
3,276
12,022
3,761
11,617
3,046
11,523
3,309
3,021
367
4,636
489
6,315
2,120
7,638
2,340
6,395
2,366
5,592
2,415
5,594
2,667
5,904
2,668
5,527
2,686
10,476
9,845
7,4%
8,694
7,356
6,313
6,458
6,501
6,666
20 Official institutions
4
45 Banks' custody liabilities
46 U.S. Treasury bills and certificates
47 Other negotiable and readily transferable
instruments
48 Other
49 MEMO: Negotiable time certificates of deposit in
custody for foreigners
1. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due to head office or parent foreign bank, and
foreign branches, agencies, or wholly owned subsidiaries of head office or parent
foreign bank.
4. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
5. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks. Data exclude "holdings of
dollars" of the International Monetary Fund.
8. Foreign central banks, 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
1987
Area and country
1984
1985
1986
May'
June'
July
Aug.
Sept.
Oct.
Nov. p
1
407,306
435,726
540,9%'
565,469
551,362
545,630'
555,185'
584,448'
605,022
604,875
2 Foreign countries
402,852
429,905
535,189'
559,563
547,358
539,685
549,853'
576,603'
601,225
599,172
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
4%
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
180,556'
1,181
6,729
482
580
22,862
5,762'
700
10,875
5,600
735
699
2,407
884
30,534'
454
85,334'
630
3,326'
80
702
212,200
921
9,360
459
909
27,872
10,619
643
11,757
5,442
571
607
2,217
1,4%
26,840
378
107,255
429
3,870
37
517
210,606
974
9,577
425
616
27,951
8,218
690
11,990
5,367
502
704
2,340
1,2%
27,796
454
105,2%
433
5,284
36
656
204,865'
795
9,154
486
497
25,486'
7,162'
667
10,031'
5,447'
562
586
2,103
1,235'
24,607
365
107,641'
459
6,41c
550
622'
208,715'
1,066
9,754
576
545
27,003
7,715
636
7,667
5,461
593
700
2,287
1,387'
28,26C
514
107,369'
491
6,016
45
629'
214,145'
1,281
10,460
590
517
27,899
6,823'
690
8,41C
6,106
663
684
2,526
1,639'
27,325'
398
109,269'
519
7,808'
51
485'
230,030
1,166
10,743
704
581
28,255
8,551
738
10,254
6,693
1,179
724
2,683
1,567
27,315
2,388
119,478
508
8,800
87
615
228,914
1,262
10,909
628
470
27,519
8,521
699
9,936
6,457
1,074
858
2,614
2,862
30,244
433
115,291
484
8,009
36
605
3 Europe
4
Austria
5 Belgium-Luxembourg
6 Denmark
7
Finland
8 France
9
Germany
10 Greece
Italy
11
17, Netherlands
13 Norway
14 Portugal
15 Spain
Sweden
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
16,059
17,427
26,345
24,532
21,942
21,232
22,556
26,066'
25,733
28,547
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
210,318'
4,757
73,619
2,922
4,325
72,263
2,054
4,285
7
1,236
1,123
136
13,745
4,970'
6,886
1,163
1,537
10,171'
205,494
4,785
69,293
2,492
3,959
71,914
2,033
4,251
6
1,090
1,166
189
13,961
5,170
7,272
1,097
1,508
9,872
5,436
198,010
4,794
66,313
2,050
3,672
68,830
1,971
4,304
8
1,118
1,121
158
13,855
5,192
7,157
1,139
1,504
9,739
5,085
200,119'
5,122'
62,518
2,317
3,783
73,678'
2,035
4,424'
8
1,088'
1,109'
146
14,159'
5,291
6,994'
1,147'
1,536
9,679'
5,085'
201,441'
5,074
62.47C
2,267'
3,955'
73,722'
2,119'
4,426'
7
1,101
1,087'
171
14,549
5,338
7,130
1,203'
1,485
10,146
5,189'
214,364'
4,674
71,502'
2,234'
4,377'
78,116
2,248
4,195'
7
1,097
1,072
156
14.29C
5,218
7,188'
1,206'
1,492
9,824
5,469'
218,208
5,075
73,224
2,437
3,942
79,692
2,191
4,190
12
1,115
1,053
140
14,338
5,305
7,467
1,205
1,493
9,882
5,447
214,540
5,316
71,253
2,266
4,090
78,123
2,219
4,299
9
1,087
1,032
150
14,508
5,234
7,513
1,205
1,526
9,032
5,678
71,187
72,280
108,831'
108,941
108,162
104,394
106,999
111,401'
115,331
118,739
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
1,476
18,902
9,390
674
1,547
1,892
47,410
1,141
1,866
1,119
12,352
11,058'
1,842
17,333
9,440
569
1,243
1,084
51,497
1,343
1,312
1,180
10,865
11,234
1,737
16,353
9,109
714
1,773
1,229
50,867
1,406
1,222
1,144
11,463
11,145
1,744
16,436
8,595
572
1,404
928
48,145'
1,410
1,148
1,0%
11,676
11,241
2,011
15,377
9,015
902
1,541
1,036
49,872
1,388
1,208
1,190
12,676
10,782
1,775
15,197
8,637
771
1,435
1,105
52,945'
1,714
1,152
1,118
14,043
11,507'
1,699
18,302
9,284
606
1,336
2,170
53,212
1,577
1,331
1,275
13,660
10,878
1,435
21,564
10,531
701
1,677
1,271
52,633
1,591
1,259
1,483
13,373
11,222
57 Africa
58 Egypt
59 Morocco
60
South Africa
61
Zaire
Oil-exporting countries
62
Other
63
3,3%
647
118
328
153
1,189
%1
4,883
1,363
163
388
163
1,494
1,312
4,021
706
92
270
74
1,519
1,360
4,002
1,052
86
198
74
1,266
1,325
3,751
1,009
106
188
58
1,111
1,281
4,023'
1,113
75
229
64
1,275
1,267'
4,194
1,158
74
227
69
1,331
1,335
4,011'
1,118
81
199
81
1,178
1,354'
3,919
1,104
70
280
71
1,081
1,313
4,065
1,169
75
246
82
1,107
1,386
64 Other countries
65
Australia
66
All other
5,684
5,300
384
3,347
2,779
568
5,118
4,1%
922
4,394
3,589
805
4,887
4,113
774
5,052
4,333
718
5,948
5,019
929
6,616
5,641
975'
5,005
4,011
994
4,367
3,666
701
67 Nonmonetary international and regional organizations
<
68
International
69
Latin American regional
Other regional 6
70
4,454
3,747
587
120
5,821
4,806
894
121
5,807'
4,620'
1,033
154
5,907
4,423
994
489
4,005
2,597
1,047
362
5,946'
4,486'
1,075
384
5,332
3,819
1,070
443
7,845'
6,197'
1,126
522'
3,797
2,310
1,155
331
5,703
3,617
1,478
608
24 Canada
7,5 Latin America and Caribbean
76
Argentina
77
Bahamas
7,8 Bermuda
79
Brazil
30
British West Indies
31
Chile
37
Colombia
33
Cuba
34
Ecuador
35
Guatemala
36 Jamaica
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
47
Venezuela
Other
43
44
45
46
47
48
49
50
51
57
53
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Thailand
i
Middle-East oil-exporting countries 3
Other
1. Includes the Bank for International Settlements and Eastern European
countries that are not listed in line 23.
2. 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. Excludes "holdings of dollars" of the International Monetary Fund.
6. 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 1988
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
M i l l i o n s o f dollars, e n d o f p e r i o d
Area and country
1984
1985
1986
May
June r
July
Aug.
Sept.
Oct.
1 Total
400,162
401,608
444,745'
438,650'
435,817
424,392'
427,057'
447,727'
461,402
2 Foreign countries
399,363
400,577
441,724'
437,705'
433,685
421,289'
423,993'
443,043'
458,571
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
107,823'
728
7,498
688
987'
11,356
1,816'
648
9,043'
3,2%'
672'
739
1,492
1,964'
3,352'
1,543
58,335'
1,835
539'
345
948'
116,535'
669
9,923'
531'
1,036
12,075
1,508
457
8,335'
2,946
776
641
114,469
758
9,828
706
1,045
12,036
1,612
457
8,409
5,744
774
659
1,872
2,330
2,618
1,785
59,937
1,757
567
582
993
108,062'
698
10,239
604
1,037
11,673
2,009
433
6,784
4,429
830
645
1,830
2,287
2,464
1,753
56,544'
1,764
647
420
974
104,180'
785
9,550
105,930'
684
9,591
747
1,266
12,781
1,485'
406
6,541
3,247
722
638
2,233'
2,752
110,995
930
10.131
795
1,089
14,350
2,046
430
7,418
3,976
812
570
1,859
2,533
2,825
1,564
55,855
1,750
549
473
1,040
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
24 Canada
2,121'
2,614
3,593
1,623
64,019'
1,805'
493
357
1,012
868'
1,031
12,530
1,333
375
6,407
3,078
803
667
1,945
2,473
2,664
1,757
54,144'
1,742
548
521
958
2,612
1,689
54,71C
1,741
619
549
915
16,109
16,482
21,006'
19,345'
20,731
18,676'
18,494'
21,578'
21,402
25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32
Colombia
33
Cuba
34
Ecuador
35
Guatemala 3
36
Jamaica
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other Latin America and Caribbean
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
208,825'
12,091'
59,342
418
25,716'
46,284'
6,558'
2,821'
0
2,439'
140
198
30,698'
1,041'
5,436
1,661
940
11,108'
1,936'
204,503'
12,335
58,329'
592
25,725'
44,380'
6,337'
2,650
9
2,372
115
184
30,139'
1,047'
4,730
1,599
962
11,071'
1,929'
202,378
12,212
56,670
297
25,522
43,939
6,339
2,649
200,728'
12,151'
53,842'
387
25,999'
44,626'
6,500
2,743
202,384'
12,221
55,935'
359
26,594'
43,290'
6,510
2,784
214,716'
11,857
65,309'
328
26,056'
47,512
6,469
2,729
217,091
12,111
64.132
423
25.786
51,473
6,387
2,731
2,354
109
30,353
1,346
4,986
1,568
950
10,982
1,920
2,396
107
268
30,271'
1,084'
4,633
1,567
949
11,306
1,902'
2,384
105
202
30,638'
994'
4,616
1,549
966
11,366
1,872'
2,367
124
198
30,542
1,041
4,579
1,479
946
11,308
1,872'
2,449
131
191
30,250
1,019
4,472
1,457
961
11,198
1,920
44 Asia
China
45
Mainland
46
Taiwan
47
Hong Kong
48
India
49
Indonesia
50
Israel
51
Japan
52
Korea
53
Philippines
54
Thailand
55
Middle East oil-exporting countries
56
Other Asia
66,316
66,212
%,126'
89,607'
88,401
86,516'
91,429'
93,322'
100,427
710
1,849
7,293
425
724
2,088
29,066
9,285
2,555
1,125
5,044
6,152
639
1,535
6,797
450
698
1,991
31,249
9,226
2,224
845
4,298
6,260
787
2,681'
8,307
321
723
1,634'
59,674'
7,182
2,217
578
4,122
7,901
1,175
3,595'
7,727
379
657
1,459
55,2W
6,083'
2,066'
541
3,697
7,008'
993
3,303
7,731
430
677
1,450
55,415
5,325
2,112
538
3,808
6,619
929
2,487
7,495
416
639
1,413
54,596
4,954
919
2,772
6,556
565
624
1,450
61,072'
4,589
2,148
545
4,315
5,875
894
2,980
6,933'
541'
1,591
60,121
4,606'
2,126
453'
4,848
7,607
548
4,219
6,889
527
625
1,331
65.787
4,983
2,082
443
5,063
7,930
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries
63
Other
6,615
728
583
2,795
18
842
1,649
5,407
721
575
1,942
20
630
1,520
4,650
567
598
1,550
28
694
1,213
4,879'
586
566
1,598
43
841'
1,246
4,704
600
563
1,501
39
818
1,184
4,705
572
568
1,479
38
866
1,182
4,739
586
603
1,497
35
862
1,156
4,704'
541
582
1,504
40
888
1,149'
5,376
538
605
1,546
38
1,531
1,118
64 Other countries
65
Australia
66
All other
3,447
2,769
678
3,390
2,413
978
3,294'
1,949'
1,345
2,836'
1,905'
931
3,001
1,980
2,601
1,693
2,766
1,686
1,080
2,794'
1,834
959'
3,280
2,034
1,246
800
1,030
3,021
945'
2,132
3,063'
4,684'
2,830
67 Nonmonetary international and regional
organizations
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.
0
182
0
2,211
565
3,914
6,897
1,021
3,103'
0
0
622'
0
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 E u r o p e . "
Nonbank-Reported
3.19
Data
BANKS' OWN A N D DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States 1
Payable in U.S. Dollars
Millions of dollars, end of period
1987r
Type of claim
1984
1986r
1985
May
June
July
Aug.
Sept.
Oct.
Nov."
1 Total
433,078
430,489
478,650
438,650
468,876
424,392
427,057
481,652
461,402
458,688
2
3
4
5
6
7
8
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
444,745
64,095
211,533
122,946
57,484
65,462
46,171
438,650
63,029
203,464
127,614
61,882
65,732
44,543
435,817
63,516
201,501
126,462
61,004
65,458
44,337
424,392
65,857
189,142
124,364
59,612
64,753
45,029
427,057
65,808
196,182
121,939
56,788
65,151
43,128
447,727
67,077
210,503
127,285
59,696
67,589
42,863
461,402
65,147
218,742
134,046
62,847
71,199
43,466
458,688
69,377
219,781
126,361
57,628
68,734
43,169
32,916
3,380
28,881
3,335
33,905
4,413
33,059
3,474
33,925
3,218
23,805
19,332
24,044
21,384
22,071
5,732
6,214
5,448
8,202
8,636
37,103
28,487
25,706
23,691
21,782
40,714
38,102
42,079
42,951
38,819
Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices
Unaffiliated foreign banks
Deposits
Other
All other foreigners
9 Claims of banks' domestic customers 3 ...
11 Negotiable and readily transferable
12 Outstanding collections and other
13 MEMO: Customer liability on
Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States 5
44,845
40,302
41,412
39,768
3. 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.
4. Principally negotiable time certificates of deposit and bankers acceptances.
5. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see July 1979 BULLETIN,
p. 550.
1. 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.
2. 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.
3.20
38,061
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1987r
1986
Maturity; by borrower and area
1
7.
3
4
5
6
7
R
9
10
11
17
13
14
15
16
17
18
19
By borrower
Maturity of 1 year or less1
Foreign public borrowers
All other foreigners
Maturity over 1 year 1
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 2
Maturity of over 1 year
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 2
1. Remaining time to maturity.
1983
1984
1985
Dec/
Mar.
June
Sept. p
243,715
243,952
227,903
232,295
226,426
236,392
235,807
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
160,555
24,842
135,714
71,740
39,103
32,637
154,789
24,154
130,635
71,637
39,168
32,468
167,244
23,270
143,973
69,149
39,483
29,665
165,387
26,976
138,411
70,420
39,757
30,663
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
61,784
5,895
56,271
29,457
2,882
4,267
58,042
5,625
54,223
29,714
3,154
4,031
68,891
5,622
55,429
30,936
2,980
3,385
61,985
5,733
58,134
32,064
2,878
4,591
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
6,737
1,925
56,719
4,043
1,539
777
6,742
1,873
56,705
4,122
1,630
564
6,417
1,631
55,572
3,387
1,522
621
6,805
1,577
55,097
3,535
1,612
1,793
2. Includes nonmonetary international and regional organizations.
A61
A62
3.21
International Statistics • March 1988
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
1985
Area or country
1 Total
1983
1986
1987
1984
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
434.0
405.7
394.9
391.9
394.2"
390.5r
390.3"
390.5"
399.8"
392.0"
167.8
12.4
16.2
11.3
11.4
3.5
5.1
4.3
65.3
8.3
29.9
148.1
8.7
14.1
9.0
10.1
3.9
3.2
3.9
60.3
7.9
27.1
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
157.0"
8.4
13.8
11.3
8.5
3.5
2.9
5.4
68.8
6.4
28. V
160.3"
9.0
15.1
11.5
9.3
3.4
2.9
5.6
69.2
7.0"
27.2
159.0"
8.5
14.7
12.5
8.1
3.9
2.7
4.8
70.3
6.2"
27.4
158.0"
8.4
13.8
11.7
9.0
4.6
2.4
5.8"
71.9
5.4
25.0
164.4"
9.1
13.4
12.8
8.6
4.4
3.0
5.8
73.9"
5.3"
28.1"
161.7"
8.5
12.6
11.4"
7.5
7.3
2.4
5.7
72.6"
6.9"
26.7"
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
36.0
1.9
3.4
2.4
2.8
3.3
1.5
7.1
1.7
1.8
4.7
5.4
33.6
1.6
2.2
1.9
2.9
3.0
1.4
6.5
1.9
1.7
4.5
6.0
32.0
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
6.5
2.3
2.4
3.2
4.9
30.7
1.7
2.4
1.6
2.6
3.0
1.1
6.4
2.5
2.1
3.1
4.2
29.5
1.7
2.3
1.7
2.3
2.7
1.0
6.7
1.6
3.1
4.1
26.2"
1.7
1.7
1.4
2.3
2.4
.8
5.8
2.0
1.4
3.1
3.5
26.0
1.9
1.7
1.4
2.1
2.2
.9
6.3
1.9
1.4
3.1
3.2
25.7
1.8
1.5"
1.5
2.0
2.2
.8
6.1"
2.1
1.6"
3.1
3.1
25 OPEC countries3
26 Ecuador
27 Venezuela
28 Indonesia
29 Middle East countries
30 African countries
28.4
2.2
9.9
3.4
9.8
3.0
24.9
2.2
9.3
3.3
7.9
2.3
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
4.7
1.8
20.6
2.1
8.8
3.0
5.0
1.7
20.0
2.2
8.7
2.8
4.6
1.7
19.6
2.2
8.6
2.5
4.5
1.7
20.5"
2.1
8.8"
2.4
5.5
1.7
19.2
2.1
8.7
2.2
4.5
1.7
2 G-10 countries and Switzerland
3
Belgium-Luxembourg
France
4
5 Germany
6
Italy
7 Netherlands
8
Sweden
Switzerland
9
10 United Kingdom
11 Canada
12 Japan
2.1
110.8
111.8
107.8
105.1
103.9
102.0
100.0
99.7
99.9"
100.2"
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
9.5
23.1
6.4
3.2
25.8
2.4
4.2
8.7
26.3
7.0
2.9
25.7
2.2
3.9
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
25.8
7.1r
2.3
24.1
1.7
3.3
9.2
25.5
7.1
2.2
24.0
1.6
3.3
9.3
25.4
7.2
2.0
24.0
1.5
3.3
9.5
25.3
7.1
24.0"
1.5
3.1
9.5"
25.7"
7.3
2.0
23.7"
1.4
3.0
9.5
24.6"
7.2
2.0
25.4"
1.4
3.0"
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.3
5.2
.9
1.9
11.2
2.8
6.1
2.2
1.0
.7
5.1
.9
1.8
10.6
2.7
6.0
1.8
1.1
1.1
5.1
1.1
1.5
10.4
2.7
6.0
1.7
.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
8.7
2.0
5.7
1.1
.8
.6
4.3
1.3
1.4
7.3
2.1
5.4
1.0
.7
.4
4.9
1.2
1.5
6.7
2.1
5.4
.9
.7
.9
5.5
1.6"
1.4
6.2"
1.9
5.4
.9
.6
.6
6.6
1.7
1.3
5.6
1.7
5.4
.8
.8
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa4
1.5
.8|
1.2
.8J
1.0
.9
1.0
.9
.9
.9
.9
.9
.6
.9
.6
.9
.1
.1
.1
.1
23
2.1
2^0
L9
1.9
1.7
.7
.9
.1
1.6
.7
.9
.1
1.6
1.4
1.3
52 Eastern Europe
53 U.S.S.R
54 Yugoslavia
55 Other
5.3
.2
2.4
2.8
4.4
.1
2.3
2.0
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
3.4
.1
1.9
1.4
3.2
.1
1.7
1.4
3.1
.1
1.6
1.3
3.4
.3
1.7
1.4
56 Offshore banking centers
57 Bahamas
58 Bermuda
59 Cayman Islands and other British West Indies
60 Netherlands Antilles
61 Panama
62 Lebanon
63 Hong Kong
64 Singapore
65 Others 6
68.9
21.7
.9
12.2
4.2
5.8|
65.6
21.5
.9
11.8
3.4
6.7
58.8
16.6
.8
12.3
2.3
6.1Q
65.4
21.4
.7
13.4
2.3
6.0J
60.1
21.4
.7
11.4
2.3
4.4
56.1"
17.1
.4"
13.0
2.4r
4.2
61.3"
19.9
.4
13.6"
1.9
5.1
64.0
22.3
.7
14.5
1.8
4.1
66.1"
24.1
.8
13.7"
1.7
5.4
63.6"
20.0"
.6
15.1"
1.3
5.3
13.8
10.3
.0
11.4
9.8
.0
11.4
9.4
.0
11.5
9.9
.0
11.5
8.5
.0
9.5
9.3
.0
10.5
9.7
.0
1L2
9.4
.0
1L4"
8.8
.0
12.6"
8.5"
.0
66 Miscellaneous and unallocated7
16.8
17.3
17.3
16.9
16.8r
16.8
17.2
19.8
19.8"
18.1
31 Non-OPEC developing countries
1
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
J
j
2.1
.1
J
J
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
3. This group comprises the Organization of Petroleum Exporting Countries
shown individually, other members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait,
Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates), and 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 1
Millions of dollars, end of period
1986
Type, and area or country
1983
1984
1987
1985
Sept.
Dec.'
Mar.'
June
Sept.''
1 Total
25,346
29,357
27,825'
26,429'
25,717
27,432
28,751
28,167
2 Payable in dollars
3 Payable in foreign currencies
22,233
3,113
26,389
2,968
24,2%
3,529'
22,432'
3,997'
21,885
3,833
23,264
4,169
24,286
4,466
23,846
4,321
By type
4 Financial liabilities
5 Payable in dollars
6 Payable in foreign currencies
10,572
8,700
1,872
14,509
12,553
1,955
13,60c
11,257
2,343'
13,501'
11,071'
2.43C
12,239
9,774
2,464
13,114
10,398
2,716
13,946
11,068
2,878
12,667
9,955
2,712
7 Commercial liabilities
8 Trade payables
9 Advance receipts and other liabilities . .
14,774
7,765
7,009
14,849
7,005
7,843
14,225
6,685
7,540
12,929'
5,728'
7,201'
13,479
6,447
7,032
14,318
6,985
7,333
14,805
7,139
7,666
15,500
7,389
8,111
13,533
1,241
13,836
1,013
13,039
1,186
11,361'
1,567'
12,110
1,368
12,865
1,453
13,218
1,587
13,891
1,609
5,742
302
843
502
621
486
2,839
6,728
471
995
489
590
569
3,297
7,70C
349'
857
376'
861'
61C
4,305'
8,907'
448'
501
319
741'
567'
5.88C
8,023
270
644
270
704
646
5,199
8,383
232
742
368
693
711
5,378
9,645
257
807
305
669
703
6,642
9,081
230
574
291
677
684
6,349
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
764
863
839
362
399
431
441
407
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,5%
751
13
32
1,041
213
124
5,086
1,926
13
35
2,103
367
137
3,184
1,123
4
29
1,843
15
3
2,283
842
4
28
1,291
18
5
1,964
614
4
32
1,163
22
3
2,369
669
0
26
1,545
30
3
1,747
398
0
22
1,223
29
5
%1
280
0
22
581
17
3
27
28
29
Asia
Japan
Middle East oil-exporting countries .
1,424
991
170
1,777
1,209
155
1,815
1,198
82
1,881
1,446
3
1,784
1,377
8
1,861
1,459
7
2,046
1,666
7
2,140
1,653
7
30
Africa
19
0
14
0
12
0
4
2
1
1
3
1
1
0
2
0
27
41
50
63
67
67
66
76
3,245
62
437
427
268
241
732
4,001
48
438
622
245
257
1,095
4,074
62
453
607
364
379
976
4,344'
75
370
633'
581
361
1,142'
4,494
101
351
722
460
387
1,346
4,521
85
379
591
372
484
1,309
4,987
111
422
594
339
557
1,380
4,973
56
437
679
350
556
1,475
31
32
33
34
35
36
37
38
39
40
Oil-exporting countries
All other 4
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
1,841
1,975
1,449
1,313'
1,393
1,352
1,253
1,263
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,473
1
67
44
6
585
432
1,871
7
114
124
32
586
636
1,088
12
77
58
44
430
212
848'
37
172
44'
45
197
207
890
32
132
61
48
213
217
1,089
28
297
82
89
185
224
1,037
13
245
88
64
160
203
1,050
22
223
40
44
231
176
48
49
50
Asia
Japan
Middle East oil-exporting countries •
6,741
1,247
4,178
5,285
1,256
2,372
6,046
1,799
2,829
4,856'
2,137'
1,507'
5,098
2,051
1,686
5,818
2,468
1,948
5,921
2,480
1,870
6,516
2,422
2,109
51
52
Africa
Oil-exporting countries 3
553
167
588
233
587
238
585
176
622
197
520
170
524
166
571
150
53
All other 4
921
1,128
982
982
981
1,019
1,083
1,128
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
3.23
International Statistics • March 1988
CLAIMS ON UNAFFILIATED FOREIGNERS
United States 1
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1986 R
Type, and area or country
1983
1984
1987
1985
Sept.
Dec.
Mar/
June
Sept/
1
Total
34,911
29,901
28,876r
34,157
33,451
34,034
31,515
31,211
2
3
Payable in dollars
Payable in foreign currencies
31,815
3,0%
27,304
2,597
26,574 R
2,302
31,446
2,711
30,923
2,528
31,238
2,7%
28,405
3,110
28,546
2,666
23,780
18,4%
17,993
503
5,284
3,328
1,956
19,254
14,621
14,202
420
4,633
3,190
1,442
18,891 R
15,526
14,911
615
3,364 R
2,330 R
1,035
24,833
18,953
18,389
565
5,880
4,506
1,374
23,357
17,899
17,343
555
5,458
4,110
1,349
24,080
17,994
17,168
826
6,086
4,740
1,345
21,580
15,437
14,253
1,183
6,143
4,868
1,275
20,906
15,920
15,086
834
4,985
3,860
1,125
11,131
9,721
1,410
10,646
9,177
1,470
9,986
8,696
1,290
9,324
8,079
1,245
10,095
8,902
1,192
9,954
8,898
1,056
9,935
8,892
1,043
10,305
9,364
942
10,494
637
9,912
735
9,333
652
8,551
773
9,471
624
9,330
624
9,283
652
9,599
706
6,488
37
150
163
71
38
5,817
5,762
15
126
224
66
66
4,864
6,929^
10
184
223
161 R
74
6,007
10,545
67
418
129
73
138
9,478
8,759
41
138
111
86
182
7,957
9,337
15
172
163
69
74
8,491
9,859
6
154
92
75
95
9,237
9,336
23
169
83
94
44
8,709
By type
Financial claims
Deposits
Payable in dollars
/
Payable in foreign currencies
Other financial claims
8
9
Payable in dollars
Payable in foreign currencies
10
4
5
6
11
12
13
14
15
16
17
18
19
20
21
22
Commercial claims
Trade receivables
Advance payments and other claims
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
31
32
33
5,989
3,988
3,260
3,970
3,964
3,779
3,329
2,883
10,234
4,771
102
53
4,206
293
134
8,216
3,306
6
100
4,043
215
125
7,846
2,698
6
78
4,571
180
48
9,438
2,806
19
105
6,060
173
40
9,207
2,624
6
73
6,078
174
24
9,547
3,945
3
71
5,128
164
23
7,539
2,572
6
103
4,349
167
22
7,491
2,507
2
102
3,687
173
18
Asia
Japan
Middle East oil-exporting countries 2
764
297
4
%1
353
13
731
475
4
715
365
2
1,320
999
11
1,193
931
11
779
439
10
1,105
721
10
34
35
Africa
Oil-exporting countries 3
147
55
210
85
103
29
84
18
85
28
84
19
58
9
71
14
36
All other 4
159
117
21
81
22
140
16
20
3,670
135
459
349
334
317
809
3,801
165
440
374
335
271
1,063
3,533
175
426
346
284
284
898
3,389
125
415
401
157
233
874
3,718
133
410
447
173
217
998
3,703
145
417
451
165
196
1,070
3,850
137
435
531
182
187
1,071
4,114
168
411
550
199
208
1,224
37
38
39
40
41
42
43
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
829
1,021
1,023
960
928
927
927
903
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,695
8
190
493
7
884
272
2,052
8
115
214
7
583
206
1,753
13
93
206
6
510
157
1,686
29
132
202
23
317
192
1,981
28
170
235
51
411
234
1,944
11
157
217
25
445
171
1,878
14
153
202
17
346
201
1,844
12
125
226
20
365
188
52
53
54
Asia
Japan
Middle East oil-exporting countries'1
3,063
1,114
737
3,073
1,191
668
2,982
1,016
638
2,588
797
682
2,751
881
565
2,707
926
529
2,640
950
455
2,772
1,018
436
55
56
Africa
Oil-exporting countries 3
588
139
470
134
437
130
470
168
495
135
432
141
379
123
407
123
286
229
257
231
222
240
261
267
57
All other
4
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
1987
Transactions, and area or country
1985
1987
1986
Jan.Nov.
May
June
July
Aug.
Sept.
Oct.
Nov.''
U.S. corporate securities
STOCKS
235,255
215,993
19,632
15,956
18,687'
17,054
23,645
21,883
24,774
24,554
22,473'
19,433
30,207
27,768
13,616
20,302
18,719
19,262
3,676
L,634 R
1,763
220
3,040'
2,438
-6,687
18,927
19,249
3,712 R
1,679^
1,749
117
2,951'
2,424
-6,639
4,190
1,298
75
859
-420
1,473
996
1,364
-912
13,056
129
426
1,474
123
118
120
351
670
48
363
-90
1,686
45
185
669
107
-155
232
-206
671
-238
296'
-26
1,009
-30
-1
717
66
-96
153
-80
635
255
387
-913
1,290
-14
27
81
-69
28
135
-325
125
-21
188
-255
171
16
-63
1,312'
-15
-12
79
435
770'
-46
157
135
1,242
20
132
138
58
380
-40
294
-624
238
-512
569
2,014
7
-30
-5,948
-541
-183
-169
-1,574
-3,407
181
-561
-83
-28
11
-211
12
-36
-45
14
102
8,972'
6,858'
10,432'
8,311'
81,995
77,054
148,1W
129,395'
3 Net purchases, or sales ( - )
4,941
4 Foreign countries
4,857
1 Foreign purchases
2 Foreign sales
5
6
7
8
9
10
11
12
13
14
15
16
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East'
Other Asia
Africa
Other countries
17 Nonmonetary international and
regional organizations
2,057
-438
730
-123
-75
1,665
356
1,718
238
296
24
168
84
9,559
459
341
936
1,560
4,826
816'
3,031'
976
3,876
297
373
-208
90
15
-48
9,155
7,257
5,691
5,333
358
BONDS 2
18 Foreign purchases
19 Foreign sales
86,587
42,455
123,169r
72,520'
98,961
72,616
9,414'
6,533'
7,027
5,638
8,662'
4,786'
20 Net purchases, or sales (—)
44,132
50,648'
26,346
2,113'
2,121'
2,881'
1,389
3,876'
1,898
21 Foreign countries
44,227
49,801''
26,034
2,243 R
2,030'
2,872'
1,548
3,836'
1,888
101
22
23
24
25
26
27
28
29
30
31
32
33
40,047
210
2,001
222
3,987
32,762
190
498
-2,648
6,091
11
38
39,313'
389
-251
387
4,529
33,900'
548
1,476'
-2,961
11,270
16
139
21,606
207
-26
268
1,866
19,150
1,182
2,181
-532
1,643
13
-61
1,655'
7
-29
38
181'
1,518'
23
254
59
252
7
-6
2,266'
43
80
37
105
1,857'
49
-4
-128
-169
8
8
2,328'
64'
116
-65
245'
1,897'
87
305
-166
301'
1
15
1,616
26
-22
44
306
1,317
-8
44
-14
-93
-17
20
3,149'
-37
-56
116
166
2,828'
47
682'
-87
52
-6
-1
937
55
-98
36
136
1,027
305
524
42
65
24
-9
430
-34
-26
-16
-26
379
68
-15
-92
-247
-10
-33
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East'
Other Asia
Africa
Other countries
34 Nonmonetary international and
regional organizations
-95
847
312
-130
9R
9
-159
40
10
257
Foreign securities
35 Stocks, net purchases, or sales ( - )
36 Foreign purchases
37 Foreign sales
-3,941
20,861
24,803
-2,36C
49,587'
51,947'
421
89,209
88,789
637'
8,017'
7,380'
-257
8,781'
9,038'
-15'
8,585'
8,599'
-373
8,674
9,047
448
8,657
8,208
1,993
12,768
10,775
712
7,498
6,787
38 Bonds, net purchases, or sales ( - )
39 Foreign purchases
40 Foreign sales
-3,999
81,216
85,214
-3,555'
166,992'
170,548'
-6,176
185,835
192,011
-1,137'
20,050'
21,186'
2,285'
25,797'
23,512'
-588'
16,303'
16,891'
-241'
12,292
12,532'
-674'
12,923
13,597
-2,604
18,046
20,649
-2,169
17,417
19,587
41 Net purchases, or sales ( - ) , of stocks and bonds
-7,940
—5,915 R
-5,756
-500'
2,028'
-602'
-614'
-226'
-611
-1,458
42 Foreign countries
-9,003
-7,000'
-6,214
-518R
1,985'
-329'
-1,207'
-546'
156
-1,357
43
44
45
46
47
48
-9,887
-1,686
1,797
659
75
38
-18,533'
-876'
3,476'
10,858
52
-1,977
-11,490
-4,187
824
9,361
80
-800
- l ^
-414'
204
1,692
20
-32'
-IT
-489
106
2,513
6
-124
-572'
-596
-62
1,078'
5
-182
-896'
-484
83
224
5
-140
-510'
-263
-20
82
14
150
-945
-71
-152
1,333
16
-25
-1,621
-665
328
418
3
179
-274
594
320
-767
-101
Europe
Canada
Latin America and Caribbean
Asia
Africa
Other countries
49 Nonmonetary international and
regional organizations
1,063
1,084
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-
458
18
44
ties sold abroad by U.S. corporations organized to finance direct investments
abroad.
A66
3.25
International Statistics • March 1988
MARKETABLE U.S. TREASURY BONDS A N D NOTES
Foreign Transactions
Millions of dollars
1987
Country or area
1985
1987
1986
Jan.Nov.
May
June
July
Aug.
Sept.
Oct.
Nov."
Transactions, net purchases or sales - ) during period1
1 Estimated total2
29,208
19,388'
23,433
-284'
12,281'
807'
1,110
523
-1,090
6,380
2 Foreign countries 2
28,768
20,491'
26,910
3,729'
8,646
3,610'
2,787
704
-5,355
7,676
4,303
476
1,917
269
976
773
-1,810
1,701
0
-188
16,326'
-245'
7,670
1,283
132
329
4,546'
2,613
0
881
22,501
719
12,173
-835
182
2,447
2,928
4,906
-19
3,815
1,694'
2'
1,417
352
-166
413
-524
198
1
37
3,640
58
1,534
111
-183
585
617
913
5
413
4,453'
-2'
1,516
204
76
512
1,105'
1,042
0
654
-1,007
366
780
-254
-153
-688
-431
-631
4
378
-1,167
-25
130
-296
-156
-99
-985
259
5
203
-781
128
31
-707
4
-609
-469
841
0
-389
6,340
-2
1,820
314
182
-297
3,163
1,157
4
679
4,315
248
2,336
1,731
19,919
17,909
112
308
926
-96'
1,130'
-108
1,345
-22
-54
1,067
-2,005
149
-1,263
-891
2,248
-1,143
-105
455
-381
11
-302
-90
2,136
-541
11
233
780
-17
-514
1,311
3,531
4,199
-18
300
-673
-4
15
-684
-676'
-597
20
-168
-675
30
-49
-656
4,318
1,839
-24
-204
-29
55
-155
72
1,762
799
3
-68
-117
-63
-227
173
-5,333
-5,272
2
1,263
472
35
367
69
1,476
1,757
-29
-1,260
442
-436
18
-1,104'
-1,430
157
-3,475
-2,557
3
-4,013
-3,147
0
3,635'
3,517'
3
-2,802
-2,875
0
-1,677
-1,722
0
-180
111
-10
4,265
4,326
0
-1,296
-1,492
0
28,768
8,135
20,631
20,491'
14,214
6,283'
26,910
29,388
-2,482
3,729'
4,447
-718'
8,646
3,719
4,927
3,610'
2,251
1,358'
2,787
2,612
175
704
1,360
-657
-5,355
2,437
-7,792
7,676
1,857
5,819
-1,547
7
-1,529
5
-3,479
17
636
0
-857
1
107'
0
329
0
-509
0
-695
-1
-891
-1
3 Europe 2
4 Belgium-Luxembourg
5 Germany
6 Netherlands
7 Sweden
8 Switzerland2
9 United Kingdom
10 Other Western Europe
11 Eastern Europe
12 Canada
13 Latin America and Caribbean
14 Venezuela
15 Other Latin America and Caribbean
16 Netherlands Antilles
17 Asia
18 Japan
19
20 M o t h e r
21 Nonmonetary international and regional organizations
22 International
23 Latin American regional
Memo
24 Foreign countries
25 Official institutions
26 Other foreign2
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 year
Rate on Dec. 31, 1987
Rate on Dec. 31, 1987
Austria..
Belgium .
Brazil . . .
Canada..
Denmark
Percent
Month
effective
3.0
7.0
49.0
8.68
7.0
Dec. 1987
Dec. 1987
Mar. 1981
Dec. 1987
Oct. 1983
Country
Percent
France
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, 1987
Country
Country
7.75
2.5
12.0
2.5
3.75
Month
effective
Dec.
Dec.
Aug.
Feb.
Dec.
1987
1987
1987
1987
1987
Norway
Switzerland
United Kingdom2
Venezuela
Percent
Month
effective
8.0
2.5
June 1983
Dec. 1987
8.0
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 year, averages of daily figures
1987
Country, or type
1
2
3
4
5
6
7
8
9
10
1984
1985
1986
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Eurodollars
United Kingdom
Canada
Germany
Switzerland
10.75
9.91
11.29
5.%
4.35
8.27
12.16
9.64
5.40
4.92
6.70
10.87
9.18
4.58
4.19
7.11
8.85
8.40
3.67
3.77
6.87
9.17
8.61
3.83
3.60
6.91
9.95
9.11
3.93
3.55
7.51
10.12
9.32
3.98
3.51
8.29
9.92
9.12
4.70
4.03
7.41
8.87
8.70
3.92
3.65
7.86
8.71
8.95
3.65
3.51
Netherlands
France
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
5.15
8.18
10.67
6.78
3.71
5.21
7.83
10.92
6.54
3.74
5.27
7.88
11.96
6.55
3.71
5.31
7.85
12.36
6.56
3.77
5.63
8.15
11.85
6.84
3.89
4.99
8.66
11.36
6.93
3.90
4.65
8.48
11.25
6.57
3.90
Belgium
Japan
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 1988
FOREIGN EXCHANGE RATES
Currency units per dollar
1987
1984
Country/currency
1
2
3
4
5
6
Australia/dollar
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
7
8
9
10
11
12
13
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Ireland/punt1
14
15
16
17
18
19
20
Italy/lira
Japan/yen
Malay sia/ringgit
Netherlands/guilder
New Zealand/dollar1
Norway/krone
Portugal/escudo
21
22
23
24
25
26
27
28
29
30
Singapore/dollar
South Africa/rand1
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound1
1985
1986
July
Aug.
Sept.
Oct.
Nov.
Dec.
87.937
20.005
57.749
1.2953
2.3308
10.354
70.026
20.676
59.336
1.3658
2.9434
10.598
67.093
15.260
44.662
1.3896
3.4615
8.0954
70.79
12.996
38.329
1.3262
3.7314
7.0179
70.72
13.041
38.528
1.3256
3.7314
7.1279
72.68
12.765
37.657
1.3154
3.7314
6.9893
71.12
12.674
37.494
1.3097
3.7314
6.9262
68.60
11.843
35.190
1.3167
3.7314
6.4962
71.06
11.500
34.186
1.3075
3.7314
6.3043
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
4.4882
6.1530
1.8482
139.313
7.8090
13.01
144.99
4.5017
6.1934
1.8553
140.63
7.8091
13.085
144.18
4.3954
6.0555
1.8134
138.40
7.8035
12.993
147.54
4.3570
6.0160
1.8006
138.61
7.8077
12.995
148.72
4.1392
5.7099
1.6821
132.42
7.7968
12.972
158.08
4.0462
5.5375
1.6335
129.46
7.7726
12.934
162.63
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
1337.96
150.29
2.5414
2.0814
59.644
6.7632
144.51
1344.18
147.33
2.5361
2.0903
58.923
6.7911
145.57
1310.86
143.29
2.5189
2.0413
63.352
6.6505
142.94
1302.58
143.32
2.5308
2.0267
64.031
6.6311
142.82
1238.89
135.40
2.4989
1.8931
61.915
6.4233
136.84
1203.74
128.24
2.4944
1.8382
64.664
6.3820
133.77
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
2.1183
48.52
811.81
126.97
29.405
6.4466
1.5365
31.114
26.041
160.90
2.1082
48.16
811.87
125.57
29.643
6.4898
1.5364
30.290
25.926
159.96
2.0924
48.86
810.07
121.34
29.902
6.3844
1.5029
30.151
25.765
164.46
2.0891
48.79
808.47
118.60
30.347
6.3560
1.4940
30.036
25.783
166.20
2.0444
50.67
802.30
113.26
30.519
6.0744
1.3825
29.813
25.495
177.54
2.0127
51.22
798.34
110.80
30.644
5.9473
1.3304
29.004
25.249
182.88
138.19
143.01
112.22
99.36
99.43
97.23
96.65
91.49
88.70
MEMO
31 United States/dollar2
1. Value in U.S. cents.
2. Index of weighted-average exchange value of U.S. dollar against the
currencies of 10 industrial countries. The weight for each of the 10 countries is the
1972-76 average world trade of that country divided by the average world trade of
all 10 countries combined. Series revised as of August 1978 (see FEDERAL
RESERVE BULLETIN, v o l . 6 4 , A u g u s t 1978, p . 700).
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
c
e
p
r
*
and
PRESENTATION
Abbreviations
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when
about half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000
when the smallest unit given is millions)
General
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
....
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed
issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
STATISTICAL
List Published
obligations of the Treasury. "State and local government"
also includes municipalities, special districts, and other political subdivisions.
In some of the tables, details do not add to totals because of
rounding.
RELEASES
Semiannually,
with Latest
Bulletin
Reference
Anticipated schedule of release dates for periodic releases
SPECIAL
Published
Issue
December 1987
Page
All
July
July
October
February
May
August
November
February
February
May
September
January
November
February
A70
A76
A70
A70
A76
A70
A70
A76
A70
A70
A70
A70
A74
A80
TABLES
Irregularly,
with Latest
Bulletin
Reference
Assets and liabilities of commercial banks, September 30, 1986
Assets and liabilities of commercial banks, December 31, 1986
Assets and liabilities of commercial banks, March 31, 1987
Assets and liabilities of commercial banks, June 30, 1987
Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1986
Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1987
Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1987
Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1987
Terms of lending at commercial banks, November 1986
Terms of lending at commercial banks, February 1981
Terms of lending at commercial banks, May 1987
Terms of lending at commercial banks, August 1987
Pro forma balance sheet and income statements for priced service operations, June 30, 1987
Pro forma balance sheet and income statements for priced service operations, September 30, 1987
1987
1987
1987
1988
1987
1987
1987
1988
1987
1987
1987
1988
1987
1988
A70
Federal Reserve Board of Governors
A L A N GREENSPAN, Chairman
M A N U E L H . JOHNSON, Vice
OFFICE OF BOARD
MARTHA R . SEGER
Chairman
MEMBERS
JOSEPH R. COYNE, Assistant
DONALD J. WINN, Assistant
to the
to the
WAYNE D . ANGELL
DIVISION
Board
Board
OF INTERNATIONAL
EDWIN M . TRUMAN, Staff
FINANCE
Director
LYNN SMITH FOX, Special Assistant to the Board
BOB STAHLY MOORE, Special Assistant to the Board
LARRY J. PROMISEL, Senior Associate
Director
CHARLES J. SIEGMAN, Senior Associate
Director
DAVID H. HOWARD, Deputy Associate
Director
LEGAL
ROBERT F. GEMMILL, Staff
Adviser
DONALD B . ADAMS, Assistant
Director
PETER HOOPER III, Assistant
Director
DIVISION
KAREN H. JOHNSON, Assistant
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 OF THE
SECRETARY
Director
RALPH W . SMITH, JR., Assistant
DIVISION
OF RESEARCH
MICHAEL J. PRELL,
Director
AND
Director
EDWARD C. ETTIN, Deputy
Director
JARED J. ENZLER, Associate
Director
THOMAS D . SIMPSON, Associate
Director
LAWRENCE SLIFMAN, Associate
WILLIAM W . W I L E S ,
Secretary
BARBARA R. LOWREY, Associate
Secretary
JAMES MCAFEE, Associate
Secretary
Director
GLENN E . LONEY, Assistant
ELLEN MALAND, Assistant
DOLORES S. SMITH, Assistant
Director
MARTHA BETHEA, Deputy Associate
PETER A. TINSLEY, Deputy Associate
Director
Director
Director
Director
Director
DAVID J. STOCKTON, Assistant
Director
JOYCE K. ZICKLER, Assistant
Director
LEVON H . GARABEDIAN, Assistant
OF
SUPERVISION
Director
(Administration)
DIVISION
DIVISION
Director
ELEANOR J. STOCKWELL, Associate
MARK N . GREENE, Assistant
Director
MYRON L . KWAST, Assistant
Director
SUSAN J. LEPPER, Assistant
Director
MARTHA S. SCANLON, Assistant
Director
DIVISION OF
CONSUMER
AND COMMUNITY
AFFAIRS
GRIFFITH L . G A R W O O D ,
STATISTICS
OF MONETARY
AFFAIRS
BANKING
AND
REGULATION
WILLIAM TAYLOR, Staff
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
DONALD L . KOHN,
Director
DAVID E. LINDSEY, Deputy Director
BRIAN F. MADIGAN, Assistant
Director
RICHARD D . PORTER, Assistant
Director
NORMAND R.V. BERNARD, Special Assistant
OFFICE OF THE INSPECTOR
BRENT L . BOWEN, Inspector
GENERAL
General
to the Board
A71
and Official Staff
H . ROBERT HELLER
E D W A R D W . K E L L E Y , JR.
OFFICE OF
STAFF DIRECTOR
FOR
S. DAVID FROST, Staff
OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK
ACTIVITIES
MANAGEMENT
THEODORE E. ALLISON, Staff
Director
EDWARD T. MULRENIN, Assistant Staff Director
PORTIA W. THOMPSON, Equal Employment
Opportunity
Programs Officer
DIVISION
OF HUMAN
RESOURCES
DIVISION OF FEDERAL
BANK
OPERATIONS
Director
RESERVE
MANAGEMENT
C L Y D E H . FARNSWORTH, J R . ,
DAVID L . SHANNON,
ELLIOTT C. MCENTEE, Associate
Director
JOHN R. WEIS, Associate
ANTHONY V . DIGIOIA, Assistant
JOSEPH H . HAYES, JR., Assistant
FRED HOROWITZ, Assistant
Director
EARL G. HAMILTON, Assistant
Director
JOHN H. PARRISH, Assistant
Director
Director
LOUISE L . ROSEMAN, Assistant
CONTROLLER
GEORGE E . LIVINGSTON,
FLORENCE M . Y O U N G ,
Controller
STEPHEN J. CLARK, Assistant Controller (Programs
and Budgets)
DARRELL R. PAULEY, Assistant Controller (Finance)
DIVISION
OF SUPPORT
ROBERT E . FRAZIER,
SERVICES
Director
GEORGE M . LOPEZ, Assistant
Director
DAVID L. WILLIAMS, 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
DEVELOPMENT
SERVICES
WILLIAM R . JONES,
Director
DAY W. RADEBAUGH, Assistant
Director
RICHARD C. STEVENS, Assistant
PATRICIA A . WELCH, Assistant
Director
Director
Director
Director
C. WILLIAM SCHLEICHER, JR., Associate
Director
CHARLES W . BENNETT, Assistant
Director
JACK DENNIS, JR., Assistant
Director
Director
Director
CHARLES W . WOOD, Assistant
OFFICE OF THE
DAVID L. ROBINSON, Associate
Director
Director
AND
Adviser
Director
A72
Federal Reserve Bulletin • March 1988
Federal Open Market Committee
FEDERAL
OPEN MARKET
COMMITTEE
MEMBERS
A L A N GREENSPAN,
E. GERALD CORRIGAN, Vice
Chairman
E D W A R D W . K E L L E Y , JR.
ROBERT T . PARRY
MARTHA R . SEGER
H . ROBERT HELLER
W . L E E HOSKINS
M A N U E L H . JOHNSON
W A Y N E D . ANGELL
ROBERT P . BLACK
ROBERT P . FORRESTAL
ALTERNATE
ROGER G U F F E Y
SILAS K E E H N
MEMBERS
THOMAS C . MELZER
FRANK E . MORRIS
THOMAS M . TIMLEN
STAFF
DONALD L. KOHN, Secretary and Staff Adviser
NORM AND R.V. BERNARD, Assistant
Secretary
ROSEMARY R. LONEY, Deputy Assistant
Secretary
MICHAEL BRADFIELD, General
Counsel
ERNEST T. PATRIKIS, Deputy General
Counsel
EDWIN M . TRUMAN, Economist
(International)
PETER FOUSEK, Associate
Economist
RICHARD W . LANG, Associate
Economist
DAVID E . LINDSEY, Associate
Economist
MICHAEL J. PRELL, Associate
Economist
ARTHUR J. ROLNICK, Associate
Economist
HARVEY ROSENBLUM, Associate
Economist
KARL A . SCHELD, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
THOMAS D . SIMPSON, Associate
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
J. TERRENCE MURRAY, First District
WILLARD C. BUTCHER, Second District
SAMUEL A. MCCULLOUGH, Third District
THOMAS H. O'BRIEN, Fourth District
FREDERICK DEANE, JR., Fifth District
BENNETT A. BROWN, Sixth District
CHARLES T. FISHER, III, Seventh District
DONALD N. BRANDIN, Eighth District
DEWALT H. ANKENY, JR., N i n t h District
F. PHILLIPS GILTNER, Tenth District
GERALD W. FRONTERHOUSE, Eleventh District
PAUL HAZEN, Twelfth District
HERBERT V . PROCHNOW, SECRETARY
WILLIAM J. KORSVIK, ASSOCIATE SECRETARY
Chairman
A73
and Advisory Councils
CONSUMER
ADVISORY
COUNCIL
STEVEN W. HAMM, Columbia, South Carolina, Chairman
EDWARD J. WILLIAMS, Chicago, Illinois, Vice Chairman
NAOMI G. ALBANESE, Greensboro, North Carolina
STEPHEN BROBECK, W a s h i n g t o n , D . C .
E D W I N B . BROOKS, JR., R i c h m o n d , V i r g i n i a
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
BETTY TOM CHU, Monterey, California
JERRY D . CRAFT, A t l a n t a , G e o r g i a
DONALD C. DAY, Boston, Massachusetts
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, New Jersey
STEPHEN GARDNER, D a l l a s , T e x a s
KENNETH A . HALL, P i c a y u n e , M i s s i s s i p p i
ELENA G. HANGGI, Little Rock, Arkansas
THRIFT INSTITUTIONS
ADVISORY
ROBERT A . HESS, W a s h i n g t o n , D . C .
ROBERT J. HOBBS, B o s t o n , M a s s a c h u s e t t s
RAMON E. JOHNSON, Salt Lake City, Utah
ROBERT W. JOHNSON, West Lafayette, Indiana
A . J. (JACK) K I N G , K a l i s p e l l , M o n t a n a
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
RICHARD L . D . MORSE, M a n h a t t a n , K a n s a s
WILLIAM E . O D O M , D e a r b o r n , M i c h i g a n
SANDRA R . PARKER, R i c h m o n d , V i r g i n i a
SANDRA PHILLIPS, P i t t s b u r g h , P e n n s y l v a n i a
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
RALPH E . SPURGIN, C o l u m b u s , O h i o
LAWRENCE WINTHROP, P o r t l a n d , O r e g o n
COUNCIL
JAMIE J. JACKSON, Houston, Texas, President
GERALD M. CZARNECKI, Honolulu, Hawaii, Vice President
ROBERT S . D U N C A N , H a t t i e s b u r g , M i s s i s s i p p i
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
JOE C. MORRIS, Emporia, Kansas
JOSEPH W . MOSMILLER, B a l t i m o r e , M a r y l a n d
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
LOUIS H . PEPPER, S e a t t l e , W a s h i n g t o n
WILLIAM G . SCHUETT, M i l w a u k e e , W i s c o n s i n
D O N A L D B . SHACKELFORD, C o l u m b u s , O h i o
A74
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PAMPHLETS
Short pamphlets suitable for classroom use. Multiple
are available without charge.
copies
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
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If You Borrow To Buy Stock
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PAMPHLETS FOR FINANCIAL
INSTITUTIONS
Short pamphlets on regulatory compliance, primarily suitable for banks, bank holding companies and creditors.
Limit of 50 copies
The Board of Directors' Opportunities in Community Reinvestment
The Board of Directors' Role in Consumer Law Compliance
A75
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
Closing the Loan: A Consumer's Guide to Mortgage Settlement Costs
Refinancing Your Mortgage
A Consumer's Guide to Lock-Ins
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
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. T H E 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. T H E 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
STAFF STUDIES.- Summaries
Bulletin
Only Printed
in the
Studies and papers on economic and financial subjects that
are of general interest. Requests to obtain single copies of
the full text or to be added to the mailing list for the series
may be sent to Publications
Services.
THE UNITED STATES, by Thomas D. Simpson and
Patrick M. Parkinson. August 1984. 20 pp.
140. GEOGRAPHIC MARKET DELINEATION: A REVIEW OF
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
Staff Studies 115-125 are out of print.
AND
ACQUISITIONS
BY
COMMERCIAL
BANKS, 1960-83, by Stephen A. Rhoades. December
1984. 30 pp. Out of print.
143. COMPLIANCE COSTS A N D CONSUMER BENEFITS OF
THE ELECTRONIC F U N D TRANSFER ACT: RECENT
114. MULTIBANK H O L D I N G COMPANIES: RECENT EVIDENCE ON COMPETITION A N D PERFORMANCE IN
BANKING MARKETS, by Timothy J. Curry and John T.
Rose. Jan. 1982. 9 pp.
126. DEFINITION A N D MEASUREMENT OF EXCHANGE M A R -
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.
1 3 1 . 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.
1 3 2 . TIME-SERIES STUDIES OF THE RELATIONSHIP BETWEEN EXCHANGE RATES A N D INTERVENTION: A
REVIEW OF THE TECHNIQUES A N D LITERATURE, b y
Kenneth Rogoff. October 1983. 15 pp.
133. RELATIONSHIPS AMONG EXCHANGE RATES, INTERVENTION, A N D INTEREST RATES: A N EMPIRICAL IN-
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
A N D 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. T H E ROLE OF THE PRIME RATE IN THE PRICING OF
BUSINESS L O A N S BY COMMERCIAL B A N K S , 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 B A N K ING: A REEXAMINATION A N D AN APPLICATION, b y
John T. Rose and John D. Wolken. May 1986. 13 pp.
151. 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.
A76
1 5 2 . DETERMINANTS OF CORPORATE MERGER ACTIVITY: A
REVIEW OF THE LITERATURE, b y M a r k J. W a r -
shawsky. April 1987. 18 pp.
153. STOCK MARKET VOLATILITY, b y C a r o l y n D .
Davis
and Alice P. White. September 1987. 14 pp.
154. T H E EFFECTS ON CONSUMERS A N D CREDITORS OF
PROPOSED CEILINGS ON CREDIT CARD INTEREST
RATES, by Glenn B. Canner and James T. Fergus.
October 1987. 783 pp.
1 5 5 . T H E F U N D I N G OF PRIVATE PENSION PLANS, b y M a r k
J. Warshawsky. November 1987. 25 pp.
REPRINTS OF BULLETIN
ARTICLES
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.
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.
The Use of Cash and Transaction Accounts by American
Families. 2/86.
Financial Characteristics of High-Income Families. 3/86.
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.
U.S. International Transactions in 1986. 5/87.
Measuring the Foreign-Exchange Value of the Dollar. 6/87.
Changes in Consumer Installment Debt: Evidence from the
1983 and 1986 Surveys of Consumer Finances. 10/87.
All
Index to Statistical Tables
References
are to pages A3-A68
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
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
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
Weekly reporting banks, 19-21
Commercial banks
Assets and liabilities, 18-20
Commercial and industrial loans, 16, 18, 19, 20, 21
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, 8
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, 6, 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
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
A78
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, 7
Foreign central banks and foreign countries, 67
Money and capital markets, 24
Mortgages, 38
Prime rate, 23
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
Federal Reserve Banks, 4, 5, 7, 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, 6
Reserve requirements, 8
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, 13
Mortgages (See Real estate loans)
Mutual funds, 35
Mutual savings banks (See 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
Real estate loans—Continued
Financial institutions, 26
Terms, yields, and activity, 38
Type of holder and property mortgaged, 39
Repurchase agreements, 6, 17, 19, 20, 21
Reserve requirements, 8
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, 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
N e w 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 receipts, federal, 29
Thrift institutions, 3. (See also Credit unions and Savings
and loan associations)
Time and savings deposits, 3, 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)
A79
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
George N. Hatsopoulos
Richard N. Cooper
Frank E. Morris
Robert W. Eisenmenger
NEW YORK*
10045
John R. Opel
To be announced
Mary Ann Lambertsen
E. Gerald Corrigan
Thomas M. Timlen
Buffalo
14240
John T. Keane
PHILADELPHIA
19105
Nevius M. Curtis
Peter A. Benoliel
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101
Charles W. Parry
John R. Miller
Owen B. Butler
James E. Haas
W. Lee Hoskins
William H. Hendricks
Robert A. Georgine
Hanne Merriman
Gloria L. Johnson
G. Alex Bernhardt
Robert P. Black
Jimmie R. Monhollon
Bradley Currey, Jr.
Larry L. Prince
Roy D. Terry
E. William Nash, Jr.
Sue McCourt Cobb
Condon S. Bush
Sharon A. Perlis
Robert P. Forrestal
Jack Guynn
Robert J. Day
Marcus Alexis
Richard T. Lindgren
Silas Keehn
Daniel M. Doyle
Robert L. Virgil, Jr.
H. Edwin Trusheim
James R. Rodgers
Lois H. Gray
Sandra B. Sanderson
Thomas C. Melzer
James R. Bowen
Michael W. Wright
John A. Rollwagen
Marcia S. Anderson
Gary H. Stern
Thomas E. Gainor
Irvine O. Hockaday, Jr.
Fred W. Lyons, Jr.
James C. Wilson
Patience S. Latting
Kenneth L. Morrison
Roger Guffey
Henry R. Czerwinski
Bobby R. Inman
Hugh G. Robinson
Peyton Yates
Walter M. Mischer, Jr.
Robert F. McDermott
Robert H. Boy kin
William H.Wallace
Robert F. Erburu
Carolyn S. Chambers
Richard C. Seaver
Paul E. Bragdon
Don M. Wheeler
Carol A. Nygren
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
Vice President
in charge of branch
Charles A. Cerino 1
Harold J. Swart1
Robert D. McTeer, Jr.1
Albert D. Tinkelenberg 1
John G. Stoides 1
Delmar Harrison 1
Fred R. Herr1
James D. Hawkins 1
Patrick K. Barron1
Donald E. Nelson
Henry H. Bourgaux
Roby L. Sloan 1
John F. Breen
James E. Conrad
Paul I. Black, Jr.
Robert F. McNellis
Enis Alldredge, Jr.
William G. Evans
Robert D. Hamilton
Tony J. Salvaggio 1
Sammie C. Clay
Robert Smith, IIP
Thomas H. Robertson
John F. Hoover 1
Thomas C. Warren2
Angelo S. Carella1
E. Ronald Liggett 1
Gerald R. Kelly 1
•Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, N e w Jersey 07016;
Jericho, N e w 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.
1. Senior Vice President.
http://fraser.stlouisfed.org/
2. Executive Vice President.
Federal Reserve
Bank of St. Louis
A80
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
April 1984
LEGEND
— " Boundaries of Federal Reserve Districts
Boundaries of Federal Reserve Branch
Territories
®
Federal Reserve Bank Cities
*
Federal Reserve Branch Cities
Federal Reserve Bank Facility
Q
Board of Governors of the Federal Reserve
System
@FedFRASER