Full text of Federal Reserve Bulletin : May 1981
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V o l u m e 67 □ N u m b e r 5 □ M a y 1981
FEDERAL RESERVE
BULLETIN
Board of Governors of the Federal Reserve System
Washington, D.C.
P u b l ic a t io n s C o m m it t e e
Joseph R. Coyne, Chairman □ Stephen H. Axilrod □ John M. Denkler
Janet O. Hart □ James L. Kichline □ Neal L. Petersen □ Edwin M. Truman
Naomi P. Salus, Coordinator
The F e d e r a l R e s e r v e B u l l e t i n 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. The artwork is provided by the Graphic Communications Section under the
direction of Peter G. Thomas. Editorial support is furnished by the Economic Editing Unit headed by Mendelle T. Berenson.
Table of Contents
389 Th e R e c e n t I n f l a t io n E x p e r i e n c e
Inflation has worsened over the past three
years, but developments suggest improve
ment ahead.
398 S u r v e y
of
Fin a n c e C o m p a n ie s ,
1980
The survey reveals a high rate of growth in
receivables held by finance companies over
the 1975-80 period compared with the find
ings of the survey five years earlier.
410 D o m e s t ic F in a n c i a l D e v e l o p m e n t s
in the
Fir s t Q u a r te r
of
1981
The expansion of money moderated in the
first quarter despite a further pickup in
economic activity and continued rapid infla
tion.
417 I n d u s t r i a l P r o d u c t i o n
Output rose 0.4 percent in April.
419 S t a t e m e n t s
to
C ongress
Frederick H. Schultz, Vice Chairman,
Board of Governors, briefly discusses the
condition of the banking system, regulation
of banking, and the views of the Board on
recently enacted legislation affecting the
banking industry, before the Senate Com
mittee on Banking, Housing, and Urban
Affairs, April 28, 1981.
424 Nancy H. Teeters, Member, Board of Gov
ernors, presents the views of the Board on
federally assisted credit and says that the
Board supports a recent legislative proposal
to apply the same enforcement procedures
and legislative timetables to the credit bud
get as apply to the rest of the budget, before
the House Committee on Banking, Finance
and Urban Affairs, April 30, 1981.
430 A n n o u n c e m e n t s
Change in discount rate.
Amendment to Regulation D. (See Legal
Developments.)
Deferral of reserve requirements for non
member depository institutions with total
deposits of less than $2 million.
Proposed interpretation of the Board’s rules
to clarify what depositors are eligible to
hold interest-bearing checking accounts at
member banks; proposed amendments to
Regulation J to implement portions of the
Monetary Control Act and to make various
technical changes.
Availability of quarterly Agricultural Fi
nance D atabook.
Adoption of policy statement on the dispo
sition of income from the sale of credit life
insurance.
Changes in Board staff.
Updating of seasonal adjustment factors for
components of the monetary aggregates.
434 L e g a l D e v e l o p m e n t s
Amendment to Regulation D; various bank
holding company and bank merger orders;
and pending cases.
Al
Fin a n c ia l
and
B u s i n e s s S t a t is t ic s
A3 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A52 International Statistics
A67 G u id e
t o Ta b u l a r P r e s e n t a t i o n ,
S t a t is t ic a l R e l e a s e s , a n d S p e c ia l
Ta b l e s
A 68 B o a r d
of
G overnors
and
S taff
A70 F e d e r a l O p e n M a r k e t C o m m it t e e
and
S taff; A d v is o r y C o u n c il s
A71 F e d e r a l R e s e r v e B a n k s ,
Br a n c h e s ,
and
O f f ic e s
A72 F e d e r a l R e s e r v e B o a r d
P u b l ic a t io n s
A74 /NZ)£X TO STATISTICAL FABLES
A76 M ap o f F e d e r a l R e s e r v e S y s t e m
The Recent Inflation Experience
James E. Glassman and Ronald A . Sege o f the
W ages , P rices , and Productivity Section o f the
Board's Division o f Research and Statistics pre
pared this article.
The continued rapid rise in prices over 1978-80
marks those years as one of the worst periods of
inflation in the postwar era. By most aggregate
measures, the rate of price increase about dou
bled between 1976 and 1979; and increases con
tinued at or close to double-digit rates in 1980
(chart 1).
A number of factors combined to produce the
rapid inflation of the past three years. As the
economy recovered from the deep 1973-75 re
cession, labor and product markets reflected the
stronger demand, and by 1978 wages and prices
began to accelerate measurably. Although the
pace of economic activity, on balance, then
began to taper off, the momentum of wage and
price increases persisted as the expectations of
both workers and firms quickly responded to the
inflationary environment. Workers’ attempts to
1. Acceleration of prices
Percentage change
Consumer price index
Personal consumption
Consumer price index, Department of Labor data. Gross domestic
business product fixed-weight index and personal consumption expen
ditures fixed-weight index, Department of Commerce data. In all
charts, except when otherwise indicated, “ percentage change” is
from four quarters earlier.
achieve gains in real income that exceeded
growth in productivity aggravated cost pres
sures. A sequence of supply disturbances, in
cluding weather-related agricultural losses and
the second major petroleum-price shock of the
decade, lent further strong impetus to wage and
price inflation. Finally, increases in the costs of
government regulation and sharp declines in the
value of the dollar over much of the last three
years added to price pressures.
There were signs that the rate of price increase
had moderated slightly in early 1981. In particu
lar, the rate of increase in food prices slackened
in response to improved supplies, and energy
prices eased following the surge that accompa
nied deregulation of domestic crude oil.
The outlook for energy prices also appears
somewhat more favorable now than in the recent
past. Domestic consumption of energy has been
cut sharply, and such cuts may have a damping
effect on any future shocks to petroleum prices.
In addition, the recent appreciation of the dollar
has partially reversed earlier declines and could,
if sustained, provide further relief. Upward pres
sure from wages and labor costs remains intense.
But the impact of a continued restrictive mone
tary policy, accompanied by fiscal austerity,
should ease demand pressures on wages and
prices and help deflate inflation expectations.
S urvey
of
R e c e n t P r ic e D e v e l o p m e n t s
The rapid inflation of the past three years has
been pervasive. Consumer prices, which had
dipped to a 5 percent rate of increase in 1976
after the 1973-75 recession, accelerated sharply
in 1978 and reached double-digit rates in 1979
and 1980 (see the table). The acceleration in
prices at the producer level was even more
pronounced: the rate of price increases for fin
ished goods more than doubled between 1976
and 1978 to 83/4 percent and then jumped to \2Vi
percent on average in 1979 and 1980.
390
Federal Reserve Bulletin □ May 1981
Consumer and producer prices
Percentage change from fourth quarter to fourth quarter, except as
noted
Item
CPI, all ite m s......................
F o o d .................................
E n erg y ..............................
Homeownership..............
Other ................................
Commodities2 ..............
Used cars......................
Services........................
PPI, finished g o o d s............
Capital equipm ent..........
1976
A
5.0 6.6
.9 7.7
6.2 8.2
4.5 8.5
7.0 5.5
4.5 4.6
16.8 -2 .5
8.5 7.0
3.3 7.1
6.4 7.3
1978 1979 1980 1981 iQ l1
9.0
11.5
7.5
12.7
6.9
5.2
11.5
7.6
8.7
7.8
12.7
9.9
36.5
18.3
7.3
6.4
2.1
8.6
12.7
8.8
12.6
10.3
18.9
16.7
9.9
8.4
15.3
10.4
12.4
11.7
11.2
10.3
16.0
13.2
9.4
7.3
19.7
10.0
10.6
11.0
1. Change from 1980:Q1.
2. Excluding used cars.
S o u r c e . Bureau of Labor Statistics.
In the consumer sector, month-to-month
movements in prices often were dominated by
developments in food and energy markets and in
the costs of homeownership. On balance, prices
for these items have increased more rapidly than
the overall rate of inflation since 1977. Price
increases for most other items, particularly con
sumer goods such as clothing and autos, moved
up less rapidly than the overall consumer price
index.
Food prices, which trended up more rapidly
than most other prices earlier in the 1970s,
slowed in 1975 and 1976, but accelerated again
by the end of 1977. The run-up in food prices was
particularly intense in 1978 and early 1979 be
cause a cyclical decline in cattle inventories led
to a sharp drop in beef production. Food prices
then slowed somewhat until mid-1980, when
pork and poultry production turned down and a
severe drought damaged agricultural output and
prospects across the country. Still, since mid1979 total food prices have risen at a rate below
the overall inflation rate.
Energy prices exploded in early 1979 after a
general price acceleration was already under
way, and ended a four-year respite in which
energy costs rose no faster than the overall pace
of inflation. The acceleration was led by a surge
in prices of imported crude oil and by the initia
tion of price decontrol for domestic crude oil.
The effort to bring the price of domestic crude oil
in line with world prices began in the spring of
1979, when the Carter administration adopted a
deregulation schedule. The average price paid by
refiners for crude petroleum jumped from less
than $14 per barrel in early 1979 to more than $30
per barrel at the end of 1980. Generally, prices
for other energy items also rose rapidly during
this period, and the CPI for these items climbed
at an average annual rate of 27 percent over the
1979-80 period.
The CPI measure of homeownership costs has
outpaced the overall inflation rate in every year
since 1977, reflecting sharp increases both in
home prices and in mortgage interest rates. Be
tween 1977 and 1980, home prices in the CPI rose
at an average annual pace of 13 percent, although
very recently they have declined in response to
weak sales. Over the 1978-79 period, the index
of mortgage rates rose fairly steadily, also at a 13
percent annual rate. Despite a sharp dip in the
summer of last year, the index for mortgage rates
in the CPI has continued to rise at about the same
rate since early 1980.
The exceptionally rapid increases in prices for
food, energy, and homeownership contrasted
sharply with the slower, though steady, accelera
tion in prices for other consumer goods and
services. Prices for consumer commodities other
than food, energy, and homes accelerated to an
8 V2 percent rate last year. Price increases for
consumer services other than energy and home
financing costs moved up from 7 ’/2 percent dur
ing 1978 to IOV2 percent in 1980. The rise includ
ed large increases for rents, medical care, and
public transportation in the second half of 1979,
increases that in part may have reflected the
spillover of sharply higher energy costs.
In the business sector, prices for capital equip
ment rose at a much slower pace than the overall
rate of inflation until 1980, when they accelerated
to double-digit rates. The recent acceleration in
prices for capital equipment was widespread. It
was in part the result of strong demand in the
defense and petroleum sectors as well as in the
automobile industry, which underwent a major
retooling to produce smaller, more fuel-efficient
models.
P e r s p e c t iv e s
B e h a v io r
on
R e c e n t P r ic e
A g g r e g a te D e m a n d
The economy quickly regained the ground lost
during the 1973-75 recession, and the expansion
The R ecent Inflation Experience
remained fairly robust until 1979. Real gross
national product advanced at an average annual
rate of 3 percent from the peak in activity during
1973 to the end of 1979. In the aggregate, this
pace was very near the estimate by the Council
of Economic Advisers of a 3'/2 percent annual
rate of growth in potential GNP (chart 2).
As the slack in economic utilization was taken
up, signs appeared that price pressure was build
ing in labor and product markets. In 1979, the
unemployment rate averaged 53A percent, down
from 8 V2 percent four years earlier. While jobless
rates for less experienced workers remained high
in 1979, the labor market for skilled workers,
among whom shortages usually appear first, ap
proached the taut conditions of earlier periods
and encouraged a bidding up of wages.
At the same time, capacity utilization in manu
facturing reached about 86 percent, just below
the 1973 average. The expansion in activity
brought a sharp jump in prices for demandsensitive industrial materials. Producer prices for
crude nonfood materials excluding energy in
creased at an average annual rate of more than 20
percent during 1978 and 1979.
Monetary and fiscal policies were an important
influence on aggregate demand both during the
expansion and later, when the economy was hit
by a series of supply disturbances. The high2. Real aggregate activity
Billions of 1972 dollars
Potential GNP
Gross national product
Percent
Capacity utilization
Potential gross national product, Council of Economic Advisers
estimate. Gross national product, Department of Commerce data.
Capacity utilization, Federal Reserve data. “ Real” is in terms of 1972
dollars.
391
employment budget deficit, which measures the
impact of discretionary fiscal policy, indicates
that tax and spending policies were expansionary
in 1977 and 1978. By 1979, however, changes in
the high-employment budget suggested that fis
cal policy generally was providing less thrust to
economic activity.
As for monetary expansion, the rate of money
growth, measured by M-1B, accelerated between
the end of 1975 and the end of 1978. Since 1979,
money growth has been slowing and, along with
a significant drain on real income resulting from
sharply higher prices of imported petroleum, has
acted to reduce growth in aggregate demand.
3. Money growth and inflation
Percentage change
Money supply (M-1B), Federal Reserve data. Gross national prod
uct fixed-weight index, Department of Commerce data. Changes are
average annual rates for period indicated.
As chart 3 shows, there has been a broad
consistency in the movements of money and
prices, with a general acceleration since the mid1960s. Nevertheless, short-run movements in
prices often bear only a loose relation, if any, to
variations in monetary expansion. In particular,
price disturbances arising from supply shocks,
such as those that hit the food and energy sectors
in recent years, are one source of divergence
between money growth and inflation. These sup
ply disruptions also can generate pressures for
monetary and fiscal accommodation; otherwise,
inertia in wages and prices causes financial ten
sions and imposes the risk of extensive layoffs
and production losses. In this way, disturbances
originating in the “real” sector can spur infla
tionary monetary growth.
392
Federal Reserve Bulletin □ May 1981
L a b o r C o sts
Beginning in 1975, the recovery in aggregate
demand buttressed efforts by workers to secure
real wage gains; even when demand slackened,
the upward momentum of wages persisted. The
index of average hourly earnings, which mea
sures trends in wage rates for production work
ers, rose at a 7 Vi percent annual rate throughout
the 1975-77 period, moved up at an SV2 percent
average rate over the next two years, and rose
93/4 percent in 1980. Hourly compensation, which
includes fringe benefits and payroll taxes, traced
a similar pattern of acceleration during the peri
od. These increases in wages were not matched
by growth in productivity, and labor costs, a
major factor determining price trends, acceler
ated steadily (chart 4). Measures of labor costs,
adjusted for the trend in productivity growth,
accelerated from an annual rate of increase of 7
percent in 1975 to W 2 percent in 1980.
Upward pressure on nominal wages came from
several sources. When workers perceived a gen
eral erosion in their purchasing power, they
attempted to adjust their nominal wage rate
upward for several reasons: ( 1) to make up their
losses to inflation; (2 ) perhaps to incorporate
expectations of future price increases into their
nominal wage adjustments; and (3) in some cas
es, to secure the real wage increases to which
they had become accustomed. In general, wage
demands were reinforced by labor market condi-
4. Worker compensation and unit labor costs
tions that led firms to compete for a relatively
scarce supply of desirable workers; where the
job outlook was not favorable, wage demands
may have been damped.
Employers attempted to keep actual wages in
line with their workers’ aspirations not only to
remain competitive for labor but also to maintain
high levels of work performance, to avoid costly
work stoppages, and to minimize the costs of
hiring and training new workers. When increases
in wages were not matched by increases in
productivity, labor costs rose; as long as demand
in general was sufficient, employers passed cost
increases along in the form of higher prices.
Wages have responded to prices largely
through informal wage-setting practices; but for
mal collective bargaining, though it covers only
one-fifth of the workforce, provides a visible
example of the wage-price interaction. Wage and
benefit settlements in major collective bargaining
units, in particular, have not been influenced
strongly by current labor market conditions, but,
rather, have tended to reflect wage adjustments
that have assured workers their traditional stan
dards of real wage improvement. Moreover, costof-living adjustment clauses (COLAs), which
are included in many major collective bargaining
contracts, have offered an explicit guarantee that
negotiated nominal wages would recover part of
their losses to inflation. While COLAs have
reduced the costs of renegotiation and of uncer
tainty for both the employer and the employee,
they also have contributed to a relatively quick
passthrough of prices into wages.
Increases in the wages of union workers, as
measured by the employment cost index, re
mained at an annual rate of about 8 percent
between 1976 and 1978, when labor markets
were tightening and the wages of nonunionized
workers were beginning to accelerate (chart 5).
Wage rates rose more rapidly for both groups in
1979. The next year, when demand slackened,
nonunion rates eased off a bit to 8 percent while
union rates accelerated further to almost 11
percent.
Factors outside of the wage determination
process also exerted pressure on payroll costs.
Government programs such as social security,
unemployment compensation, and the minimum
wage may have been principal contributors. Al-
The R ecent Inflation Experience
393
5. Relative wages
Percentage change from 1975
EMPLOYMENT COST INDEX
Percentage change from 1975
AVERAGE HOURLY EARNINGS
Total nonagricultural
Bureau of Labor Statistics data. Percentage change is cumulative,
beginning in 1975:Q4. Auto wages based on SIC 3711; steel wages on
SIC 3312.
though, in the aggregate, the impact of these
programs on annual increases in labor costs
appears to have been relatively small, they had a
differentially large impact on some sectors of the
economy. Increases in the social security tax and
in contributions for unemployment compensa
tion have tended to boost relatively the labor
costs of firms employing low-income workers.
Changes in the minimum wage rate have had the
greatest impact on sectors, such as retail trade,
with a large concentration of workers earning at
or close to that rate.
A lower trend of productivity growth in recent
years resulted in nominal wage increases putting
more upward pressure on labor costs and in turn
on prices than they did earlier in the postwar
period. The long-run deterioration in the growth
of output per hour can be observed by comparing
the average rates of productivity growth between
business cycle peaks. Between 1960 and 1969,
output per hour grew at about 2 Vi percent per
year, but since early 1974 the trend growth in
productivity apparently has dropped dramatical
ly, to less than 1 percent annually. Reflecting the
6. Productivity trends and cycles and real wage growth
Percentage change
Trend growth
in productivity
*
Real wage growth
1955
1960
1965
1970
1975
1980'
1953 Q2
___________________________ _______________________1957 03
Labor productivity and total compensation, Bureau of Labor Statistics data. Real wage constructed by deflating nominal wage by gross
domestic business product deflator before 1960 and by gross domestic
1957 Q3
1960 01
1960 Q l1969 03
1969 Q3— 1973 Q41973 04
1980 01
product fixed-weight price index later. Gross domestic business
product price indexes, Department of Commerce data,
394
Federal Reserve Bulletin □ May 1981
declining trend in productivity advances, growth
in real wages slowed from 2 3A percent in the
1960s to 2'U percent in the early 1970s, and then
to less than 1 percent in the most recent business
cycle (chart 6 ).
E nergy P rices
Increases in energy prices, which were relatively
moderate between 1976 and the end of 1978,
became a significant factor in the inflation proc
ess during the past two years (chart 7). Political
upheaval in Iran during the winter of 1978-79 led
to a sharp reduction in oil shipments, and spot
market prices began to rise well above long-term
contract rates. In response to these conditions,
the members of the Organization of Petroleum
Exporting Countries increased their prices. The
price of imported crude oil rose steadily from
less than $15 per barrel in late 1978 to $25 per
barrel by the fall of 1979. By the summer of 1980,
the price had stabilized at about $34 per barrel,
as demand weakened and inventories rose. The
large stocks helped to cushion the impact of
sharp curtailments in production by Iraq and Iran
during the autumn, but by year-end the world
price of petroleum stood at $36 per barrel.
Along with OPEC price increases, the phased
deregulation of prices for domestic crude petro
leum that ended in January 1981 exacerbated the
rise in energy costs. Moreover, the rise in petro
leum product prices led to increased pressures
for competing fuels. Overall, consumer energy
prices rose at an average annual rate of nearly 30
percent in the 1979-80 period.
Although prices of imported crude oil rose
more rapidly in 1973-74 than in 1979-80, the
recent episode probably had a greater impact on
the overall inflation rate. Sharply increasing
prices, matched with relatively inelastic demand,
gave petroleum greater importance in total ex
penditures. Expenditures for oil, which includes
petroleum consumed directly and petroleum
used in the production of goods and services by
business, increased from 3^2 percent of nominal
GNP in 1974 to 6 percent in 1980 as a result of the
recent price explosion. Lately, however, indica
tions are that the share of energy in total expen
ditures is receding slowly. This development
reflects increasing efficiency in the use of energy.
The inflationary effect of the energy price
eruption percolated through all sectors of the
economy. The most immediate effect surfaced at
the retail level in items purchased directly by
consumers. Gasoline and fuel oil prices rose at
an average annual rate of 35 percent during 1979
and 1980. Increases in prices of natural gas and
electricity were not far behind, as utilities passed
on their higher costs. Moreover, a wide variety
of indirect effects followed as petroleum costs
spilled over into other sectors, raising both ener
gy costs and prices for petroleum-based feed
stocks. For example, while price increases for
energy products consumed directly by individ
uals peaked early in 1980, their effect lingered as
they were passed on into other prices, such as
those for industrial materials and public trans
portation.
7. Refiners’ acquisition cost of crude petroleum
F o o d P rices
To a considerable extent price developments in
the food sector have reflected the steady, sys
tematic influence of inflationary processes simi
lar to those in other sectors of the economy.
Production costs rose rapidly, productivity
lagged, and producers sought special arrange
ments to protect incomes against the deleterious
effects of inflation (chart 8 ). At the farm level,
the prices farmers paid for production inputs
rose at a 13 percent rate during the three years
beginning in 1978; the sharpest increase occurred
in 1979, when these prices were boosted by the
The R ecent Inflation Experience
8. Food production costs
Percentage change
Prices paid by farmers for production inputs
j
Marketing costs
Prices paid by farmers for production inputs and food marketing
cost index, Department of Agriculture. CPI food excludes meats, fish,
poultry, eggs, and fruits and vegetables; calculated by the Federal
Reserve using Bureau of Labor Statistics data.
soaring costs of petroleum-based production in
puts. Similarly, food marketing costs, which
account for roughly two-thirds of retail food
costs, rose at an annual rate of III/2 percent over
the three-year period; the largest increases oc
curred in 1979 and 1980. These cost increases
were aggravated by slower productivity growth
in recent years following an era in which technol
ogy improved rapidly. A variety of government
price supports and financing programs designed
to protect the incomes of farmers limited the
downward flexibility of prices in the traditionally
price-flexible farm sector.
Against a backdrop of inflationary pressures in
food markets, special developments, including
weather-related disruptions and biological con
straints on livestock production, have resulted in
volatile short-run price movements that often
have obscured more fundamental influences. In
creased susceptibility to disruptions in agricul
tural supply characterized the 1970s. In earlier
decades, large grain inventories and idle agricul
tural capacity helped mitigate the effects of such
disruptions. In the 1970s, by contrast, world
demand for U.S. grain soared, idle acreage was
returned to production, and grain inventories
relative to consumption were lower on average
than in earlier decades. Hence farm prices were
highly sensitive to changes in crop conditions
here and abroad.
Disruptions in crop supply in the 1978-80
period, while generally not so severe as those of
395
1973-74, nevertheless significantly affected farm
and food prices. For example, in 1978, heavy
rains in California affected production of lettuce
and other items. In 1980, a severe drought in the
Midwest and South reduced supplies of agricul
tural products and pushed up prices for a number
of farm products; increases in prices for crops
and some fruits and vegetables were especially
large. Freeze damage to Florida crops in early
1981 caused a sharp upturn in the prices of
orange juice and fresh vegetables. Generally,
price increases for fruits and vegetables soon
were reversed partially or fully so that, over the
1978-80 period as a whole, prices for these items
increased less rapidly than overall prices.
When supply disruptions in the farm sector
cannot be offset quickly they can have signifi
cant bearing on the price performance of the total
economy. Because of the long biological lags in
the livestock sector, for example, even brief
disruptions in feed supplies can affect food prices
over long periods of time. For instance, the
severity of the drawdown in cattle inventories in
the late 1970s stemmed in part from the poor
harvests and high crop prices of the 1973-75
period. For a time in the late 1970s this draw
down in inventories dominated other develop
ments in food prices. In 1978 in particular, with
beef production falling, the CPI for meats, poul
try, fish, and eggs increased more than 20 per
cent, far more than the general inflation rate.
Record levels of pork production in 1979 and
1980 helped offset reduced levels of beef produc
tion; but over the three years as a whole, the CPI
for meats and related items still rose at an
average annual rate of more than 12 percent.
G o vern m en t R e g u la tio n s
Certain government activities intensified cost
pressures in the recent period, either directly or
by increasing business operating costs. Price
supports, trigger-price mechanisms, and import
taxes led directly to price increases. Regulations
aimed at improving the environment and protect
ing worker health and welfare generally raised
costs, which in turn put upward pressure on
prices. While these programs added to cost pres
sures mostly over a short span, they contributed
indirectly to inflationary trends as subsequent
396
Federal Reserve Bulletin □ May 1981
adjustments in the prices of products and serv
ices were absorbed in the economy.
The number of regulations issued by such
agencies as the Environmental Protection Agen
cy and the Occupational Health and Safety Ad
ministration has increased dramatically in the
last five years. Research on the impact of these
regulations has indicated that their costs are
high. For example, the Council on Environmen
tal Quality estimated that in 1979 about $37
billion, or 1.5 percent of GNP, was spent to
comply with EPA requirements; another study,
by Resources for the Future, suggests that pollu
tion control efforts in the 1973-75 period may
have been responsible for 5 to 15 percent of the
measured slowdown in labor productivity during
those years.
Unfortunately, a good deal of judgment enters
into any estimate of the inflationary impact of
regulations. Measuring the costs of regulatory
activities is fairly straightforward, but evaluating
the benefits to society of cleaner air, purer water,
and safer work places is not easy. A particularly
difficult issue is whether quality changes are
appropriately considered in inflation measures.
For example, in constructing its measure of new
car prices, the Bureau of Labor Statistics does
not include price increases resulting from added
costs of safety or pollution control equipment; in
effect it assumes that the benefits of the devices
are equal to their costs. On the other hand,
increases in the costs of clean-air devices for
factories are measured as price increases once
these costs are passed on into higher prices.
Price supports, import taxes, and trigger-price
mechanisms may have added directly to price
pressures by increasing product prices above the
levels that would have been determined in an
unrestricted market. For example, steel trigger
prices, which determine the level below which
imported steel may not be sold in the United
States without initiating “dumping” investiga
tions, may have impaired domestic price compe
tition.
E xch ange R a te s
The sharp depreciation of the dollar between
mid-1976 and mid-1980 may have raised domes
tic prices. Exchange rate developments are
transmitted to the domestic price level through
several channels. First, prices of imported goods
and services consumed directly tend to rise with
a depreciation of the dollar. Second, price
changes for these products affect the prices of
domestically produced products that compete
with imports. Third, exchange rate develop
ments influence the costs of producing domestic
goods and services that use imported materials
as inputs. A Federal Reserve study has estimated
that, with everything else equal, the 20 percent
decline in the weighted-average exchange rate
for the dollar over the four years ending in mid1980 may have boosted the CPI index 3A of a
percentage point on average in each year of the
1976-80 period. If the recent appreciation of the
dollar is sustained, more than half of those price
increases will be reversed (chart 9).
9. Trade-weighted exchange value of the dollar
March 1973 =100
1977____________ 197?___________ 1981
Exchange value of the U.S. dollar is the index of weighted-average
exchange value of the U.S. dollar against currencies of other Group of
Ten countries plus Switzerland using 1972-76 total trade weights.
Taking a broader perspective, however, the
depreciation of the dollar may have been a
symptom of a more general set of factors that
also led to domestic price inflation. To the extent
that the depreciation was the result of a relatively
more rapid rate of money growth at home than
abroad, it would be difficult to argue that the
subsequent increase in domestic prices was the
result of the depreciation. In such a framework
the role of the exchange rate as a causal factor in
domestic inflation becomes less clear.
The R ecent Inflation Experience
O utlook
Looking ahead, several developments suggest
some improvement in the rate of inflation. First,
although increased pressures from food prices
again are in prospect and depend critically on
uncertain agricultural supply conditions, oil price
developments are not likely to play as significant
a role in the near term as in 1979 and 1980.
Substantial world inventories of crude petroleum
are likely to frustrate further efforts by exporting
nations to raise petroleum prices by very much in
the near term. Second, current efforts to ease
regulatory burdens, coupled with smaller legis
lated increases in social security payroll taxes
over the next four years, should help reduce
upward cost pressures. Third, the recent signifi
cant improvement in the value of the dollar, if
sustained, could ease price pressures. Finally,
monetary policy is on a course of restraining the
expansion of money and credit; the resulting
moderation in the growth of aggregate demand
and the impact on expectations should have a
damping effect on wages and prices.
Current price behavior indicates that the re
cent austere policies may have begun to have
some effects. The most immediate effect of the
slackening in aggregate demand on price behav
ior has been a squeeze on profit margins, which
have dropped well below historical levels (chart
10). However, the slower growth in aggregate
demand and the concomitant rise in unemploy
ment have not as yet resulted in an observable
slowing of wage increases. Evidence suggests
that reductions in demand do in general tend to
moderate the size of wage increases, but achiev
ing a rapid response would likely be associated
with large costs in terms of lost jobs and reduced
output. Significant progress without incurring
such heavy costs requires an adjustment in work
ers’ expectations of inflation.
397
Scattered signs suggest that wage demands
may be beginning to respond to the changing
economic environment. Wage concessions, such
as those recently negotiated at Chrysler, while
not widespread or likely to spill over into nonre
lated industries, may be signaling an underlying
responsiveness of wages to profit margins. In
addition, as slack demand continues to charac
terize the labor market and as workers recognize
it as more than a transitory phenomenon, com
petitive forces may restrain wage rates and labor
costs.
10. Profit share, nonfinancial corporations
1969
1971
1973
1975
1977
1979
1981
Department of Commerce data. Profit share is calculated as a
fraction of gross domestic business product. Shaded areas represent
periods of business recession as designated by the National Bureau of
Economic Research.
Improvement in the trend growth of productiv
ity also would help alleviate labor cost pressures,
but a significant brightening of the labor cost
picture at the current pace of wage increases
would require an improvement in productivity to
rates not experienced for more than a decade.
Because labor productivity depends importantly
on additions to the nation’s capital stock, such a
sharp turnaround is not likely to occur soon.
398
Survey of Finance Companies, 1980
This article was prepared by Evelyn M. Hurley o f
the B oard’s Division o f Research and Statistics.
Every five years since June 1955 the Federal
Reserve System has conducted a survey of the
assets and liabilities of finance companies that
supply specialized short- and intermediate-term
financing to consumers and businesses. This
article summarizes the results of the most recent
survey, which covered the entire industry, al
most 2,800 companies.1
The surveys are designed primarily to estab
lish benchmark data for series that are published
regularly on short- and intermediate-term con
sumer and business credit outstanding at and
extended by finance companies. In addition,
because detailed balance-sheet data are collect
ed, the surveys have provided information on the
changing composition of loan portfolios of fi
nance companies as well as on the companies’
major sources of funds. Because the data are
collected as of a single day—June 30—they pro
vide only a limited perspective on industry be
havior during the period between surveys.2
Several developments undoubtedly reduced
the volume of credit outstanding on June 30.
First, the most recent survey was taken at a time
N o t e . Erling Thoresen, Samuel Slowinski, Linda Gunter,
Edith Collis, Rena Carlton, and other members of the Divi
sions of Research and Statistics and of Data Processing
helped with the survey and preparation of the report. In
addition, the survey was conducted with the cooperation and
assistance of the Federal Reserve Banks and of industry trade
associations.
1. Previous Federal Reserve surveys of finance companies
were made on June 30 of 1955, 1960, 1965, 1970, and 1975;
articles describing these surveys were published in the F e d
e r a l R e s e r v e B u l l e t i n for April 1957, October 1961, April
1967, November 1972, and March 1976 respectively. The
1980 survey consisted of a presurvey questionnaire mailed to
about 5,850 companies and a survey form mailed to a sample
of 749 companies. See the technical note at the end of the
article for detail on the coverage of the survey.
2. Moreover, because the surveys are conducted as of
June 30, the results may be biased by the temporary adjust
ments to the balance sheet that usually occur at the close of
an accounting period.
when economic conditions were especially un
settled. The midyear survey date marked the
close of a quarter in which real gross national
product posted its largest single-quarter decline
of the postwar period. Seeond, in conjunction
with a broad anti-inflation program set forth by
the administration, the Board on March 14 had
announced a credit restraint program aimed at
curbing excessive growth in money and credit.
Both consumer and business credit at finance
companies were covered under this program.3
Whatever the influence of these develop
ments, the dominant characteristic of the 1980
survey appears to be the high rate of growth in
receivables held by finance companies over the
1975-80 interval compared with the 1970-75 pe
riod. A number of factors can account for this
acceleration. The mid-1975 survey had been tak
en shortly after the trough of a severe and
prolonged recession that had greatly depressed
demands for both consumer and business credit
and thus limited the expansion in finance compa
ny activities relative to the levels reported in the
June 1970 survey. By comparison, a sustained
growth in aggregate demand characterized virtu
ally the entire period between mid-1975 and mid1980, and in the latter part of the period unusual
ly rapid and persistent inflation further boosted
demands for credit in nominal terms. At the end
of June 1980 total gross receivables outstanding
at finance companies were 113 percent larger
3. Consumer lending was restrained through a special noninterest-bearing deposit requirement tied to increases above a
base amount in certain types of consumer receivables. These
included revolving credit balances, unsecured personal cash
loans, and loans collateralized by goods not purchased with
the loan proceeds. All creditors with more than $2 million of
such credit outstanding were subject to the program. Guide
lines were separately established for overall credit growth,
including business loans at commercial banks and finance
companies. Each institution was to contain its expansion of
total lending to a rate consistent with the Federal Reserve’s
monetary growth targets, of about 6 to 9 percent annually.
Creditors were asked especially to curtail financing of corpo
rate takeovers and speculative holdings of commodities.
Survey o f Finance Com panies, 1980
than five years earlier, whereas in the preceding
half decade they had expanded only 51 percent.
Against a background of restrictive state lend
ing laws, heavy demands for credit and high rates
of interest also may have spurred finance compa
nies to extend their lending operations more
rapidly into new areas of financing than they had
done in the previous five-year interval. These
newer techniques tended to lengthen the average
maturity of loan portfolios. On the other hand,
the proportions of funds raised by finance com
panies through long- and short-term sources re
mained relatively unchanged between the two
surveys. This latter phenomenon probably re
flected special circumstances in credit markets
preceding each survey date as well as the length
ening of maturities on the asset side of the
balance sheet. In late 1974 and early 1975 finance
companies, like many other enterprises, engaged
in a major restructuring of their balance sheets,
issuing unprecedented amounts of long-term
debt to rebuild liquidity and to refund heavy
short-term borrowing during the tight-money pe
riod of 1973-74. More recently, as demands for
short- and intermediate-term consumer and busi
ness credit dropped sharply in the second quarter
of 1980, in response to the recession and to credit
restraints, finance companies found little need to
seek short-term funds. At the same time, long
Selected interest rates
January 1975-December 1980
Percent
Directly placed finance company paper rate is monthly
average of daily rates. Moody’s corporate bonds are monthly
averages of weekly figures.
399
term interest rates fell appreciably, after two
quarters of historical highs, encouraging finance
companies once again to issue record amounts of
long-term debt (see chart).
D iv e r s if i c a t io n o f
F i n a n c e C o m p a n y A c t iv it ie s
Between 1975 and 1980 finance companies accel
erated their lending activities in relatively new
areas, such as revolving credit, loans secured by
junior liens on real estate, and leasing. One major
effect of this diversification was that real estate
credit, mainly loans secured by second mort
gages, exhibited the greatest relative growth in
finance company portfolios.4 This growth came
largely at the expense of traditional forms of
consumer credit, whose declining relative impor
tance reinforced a trend that had emerged before
1975. In contrast, the proportion of total receiv
ables held in business credit rose only fractional
ly, but for the first time this class of assets
accounted for a larger portion of finance compa
ny receivables than consumer credit.
Although real estate loans were still a relative
ly minor item in the portfolios of finance compa
nies in 1980, the share of total lending by these
institutions almost tripled in the intersurvey peri
od, from 2V4 percent in 1975 to 6 ‘/2 percent in
1980 (table 1). Nearly all of this increase was
attributable to cash loans secured by junior liens
on real estate, which rose from $1.9 billion, or 2
percent, of finance company business in the
earlier survey, to $10.5 billion, or 6 percent,
more recently (table 1). One reason for the
growing popularity of second mortgage loans
may have been that consumers were able
through these secured loans to borrow larger
sums of money than most state laws governing
traditional forms of consumer credit permit;
moreover, the secured nature of these loans
generally permit them to bear lower interest
rates. As a consequence, second mortgage loans,
which in the survey are classified as real estate
rather than consumer credit, displaced personal
cash lending to some extent, and thus probably
4. These loans have been included in the Board’s consum
er credit statistics.
400
Federal Reserve Bulletin □ May 1981
accounted for a significant part of the concomi
tant drop in the importance of non-real-estate
credit to consumers in finance company busi
ness.
With the growth of lending secured by second
mortgages, traditional types of personal cash
lending declined in importance, from 36 percent
of the consumer credit outstanding at finance
companies in June 1975 to 28 percent in June
1980 (table 1). In the 1980 survey, retail auto
credit surfaced as the most important type of
consumer credit, regaining the prominence that
had been evident in the 1950s and early 1960s. In
the intervening period, banks and credit unions
had aggressively competed with finance compa
nies in the auto financing market, and the share
of finance companies in that market had de
clined. Before the 1980 survey, however, many
banks deemphasized their auto lending pro
grams, in part in reaction to the restrictions
placed on growth of bank lending in the credit
restraint program and in part because of state
usury laws that limited the amount of interest
chat-ged on such loans. Finance company subsid
iaries of auto manufacturers, seeking to bolster
auto sales for parent companies, were less con
cerned with interest rate spreads and acquired
much of the auto lending relinquished by the
banks.
Nonautomotive retail credit also increased its
share in the consumer lending of finance compa
nies in the 1975-80 period, and by the end of this
interval was rivaling personal cash loans as the
second most important consumer receivable.
This type of credit rose from 17 percent of
finance company consumer receivables in June
1975 to 29 percent in the 1980 survey, as a result
of growth in revolving credit (table 1). One
1. Gross receivables at finance companies1
Type
Amount (billions of dollars)
Mid-1975
Mid-1980
Percentage change
between surveys
1970-75
1975-80
Share of total (percent)
Mid-1975
Mid-1980
Gross receivables
C o n su m er..........................................
B u s in e ss............................................
Real e s t a t e ........................................
Other ..................................................
40.8
39.3
1.92
3.9
77.3
86.1
11.8
8.2
Total....................................................
86.0
183.3
28.5
70.8
n.a.
68.6
89.3
119.1
n.a.
107.3
47.5
45.7
2.3
4.6
42.1
46.9
6.5
4.5
50.6
113.2
100.0
100.0
Consumer receivables
Retail passenger c a r s ......................
Mobile hom es....................................
Revolving credit................................
In personal cash lo a n s ................
In other consumer go ods............
Other personal cash lo a n s..............
All other consumer loans................
9.9
3.5
5.8
n.a.
n.a.
14.83
6.9
27.1
4.8
16.8
.6
16.2
22.0
6.5
7.4
48.7
n.a.
n.a.
n.a.
19.3
-11.8
172.9
39.6
191.2
n.a.
n.a.
49.1
-5 .1
24.3
8.5
14.1
n.a.
n.a.
36.2
16.9
35.1
6.3
21.7
.8
20.9
28.5
8.5
Total....................................................
40.8
77.3
28.5
89.3
100.0
100.0
Business receivables
W holesale..........................................
R e ta il..................................................
L e a sin g ..............................................
Other business c r e d it......................
10.9
11.1
8.1
9.2
21.7
26.3
23.3
14.7
46.6
68.6
112.1
78.2
98.6
137.8
188.4
60.2
27.9
28.2
20.5
23.4
25.3
30.6
27.0
17.1
Total....................................................
39.3
86.1
70.8
119.1
100.0
100.0
Real estate receivables
Secured by first lie n s ......................
Secured by junior liens....................
n.a.
1.9
1.4
10.5
n.a.
n.a.
n.a.
437.1
n.a.
n.a.
11.7
88.3
Total....................................................
n.a.
11.8
n.a.
n.a.
n.a.
100.0
1. For this and all other tables, details may not add to totals due to
rounding.
2. Includes only amount secured by junior liens; amount secured by
first liens not available.
3. May include small amounts of revolving credit outstanding,
n.a. Not available.
Survey o f Finance C om panies, 1980
reason for the growing popularity of revolving
credit over the 1975-80 period may have been
the extension of the payment period and conse
quent reduction in the monthly repayment of
debt that it allows.
In the 1980 survey, lending to business ac
counted for 47 percent of gross finance company
receivables, 1 percent higher than the proportion
reported in the 1975 survey (table 1). There were
several similarities between business lending in
the 1975 and 1980 surveys. First, paper secured
by durable goods, both wholesale and retail,
remained the dominant type.5 Second, the per
centage of business credit represented by whole
sale auto paper continued to drop as automobile
dealers attempted to keep auto inventories low
during a prolonged period of depressed sales and
high interest rates. Third, lease paper continued
to grow significantly in importance. That growth
was probably the result of a longstanding effort
by businesses to reduce commitment of their
own resources, to limit the expansion of balancesheet debt, and to benefit from the tax incentive
to the lender.
Sources
of
Fin a n c in g
in
M i d -1980
Finance companies traditionally operate on a
relatively narrow capital base. In mid-1980,
5.
In c lu d e s tr a n s a c tio n s b e tw e e n m a n u fa c tu r e r s and d e a l
ers se c u re d b y p a s s e n g e r c a rs and c o m m e r c ia l veh icles,
m o b ile h o m e s , p a s s e n g e r ca r tra ilers, m o to r h o m e s , b o a ts,
a ir p la n es, h e lic o p te r s , b u s in e s s , in d u str ia l, a n d farm e q u ip
m en t; o th e r w h o le s a le o p e r a tio n s n o t e ls e w h e r e c la ssified ;
and reta il c re d it a r isin g fro m th e sa le (o r p u rc h a se ) o f
b u s in e s s , in d u str ia l, an d farm e q u ip m e n t, a n d c o m m e r c ia l
v e h ic le s (in clu d in g fle e t s a le s ).
2.
401
stockholders’ equity represented about one-sev
enth of total liabilities and capital of finance
companies, about the same as in 1975 (table A5).
Although finance companies traditionally have
obtained most of their funds through short-term
borrowing, that kind of debt has accounted for
only slightly more than half of total debt in the
last two surveys (table 2). Both surveys revealed
that almost three-fourths of the short-term debt
was in the form of commercial paper. Commer
cial paper—unsecured short-term promissory
notes—has been the dominant short-term liabil
ity of finance companies since the 1960s. The
most rapid growth in commercial paper as a
source of funds for finance companies came after
the tight-money period of 1966, when many
companies entered the market for the first time
to hedge against a curtailment in bank credit
lines. By mid-1975, investors had developed seri
ous concerns over the quality of paper because
of business conditions; consequently, the num
ber of finance companies that reported outstand
ing commercial paper dropped to 128 in that year
from 138 in 1970 (table 3). By mid-1980, howev
er, the number had risen to 179 companies with
$52.3 billion of paper outstanding.
Because commercial paper is unsecured, only
large, well-known firms can sell these notes
readily in the open market. As a result, 95 firms,
each reporting receivables of $100 million or
more, accounted for 97 percent of the finance
company paper outstanding at the end of June
1980. The bulk of this paper—83 percent in mid1980—is sold directly by the issuing company to
the lender, usually at a cost lower than that for
bank credit. The direct selling of paper, howev
er, requires a company to set up and maintain a
Finance company debt, midyear 1975 and 1980
Type of debt
Percentage change
between surveys
Debt outstanding
(billions of dollars)
Share of total debt (percent)
Mid-1975
Mid-1980
1970-75
1975-80
Mid-1975
Mid-1980
Long-term ............................
Short-term1 ..........................
B ank..................................
Commercial p a p e r..........
Directly placed............
Dealer p la c e d ..............
29.7
36.6
7.9
25.9
23.7
2.2
60.5
70.8
7.9
52.3
43.2
9.1
80.5
23.6
20.0
17.4
23.1
-21.5
103.4
93.4
- .2
102.0
82.5
310.1
44.8
55.2
11.9
39.0
35.7
3.3
46.1
54.0
6.0
39.9
32.9
6.9
Total......................................
66.4
131.3
43.9
97.9
100.0
100.0
1. Includes short-term debt not elsewhere classified and not shown separately.
402
Federal Reserve Bulletin □ May 1981
well-trained marketing department. Indirect
sales through dealers are used mostly by issuers
whose needs are only seasonal, or that are not
known well enough to sell directly. In general,
such paper carries a somewhat higher interest
yield than paper placed directly; and the issuer
always pays a service fee of up to V8 of a
percentage point to the dealer.
3.
Finance companies reporting commercial paper
liabilities, midyears 1975 and 1980
Number of companies
Size of company, by
consumer and business
loans outstanding, in
thousands of dollars
Issuing commercial
paper
In size category
1975
1980
1975
1980
100,000 and o v e r ..........
25,000-99,999..............
5,000-24,999..............
1,000-4,999................
Under 1,000 ..................
67
34
19
8
95
46
30
10
88
102
204
500
2,482
148
156
239
484
1,749
Total n u m b e r................
128
179
3,376
2,775
In part the shift in the patterns of borrowing by
finance companies in credit markets toward long
er-term debt appears to be the result of condi
tions that had prevailed in the months immedi
ately before the survey dates. In 1974 and 1975,
finance companies undertook a major restructur
ing of debt as long-term rates declined following
a period of stringent credit conditions. More
recently, the recession and the credit restraint
program in early 1980 had a similar effect on the
borrowing patterns of finance companies. Also,
newer lending techniques such as second mort
gage lending and leasing tended to lengthen the
average maturity of finance company lending,
perhaps inducing finance companies to rely more
heavily on long-term debt.
C o n c e n t r a t i o n o f R e c e iv a b l e s ,
D e b t, a n d E q u it y
Like surveys in previous years, the 1980 survey
revealed a highly concentrated industry. Finance
companies with $25 million or more in receiv
ables made up only 11 percent of all finance
companies; yet these firms held 97 percent of the
value of all consumer receivables and 98 percent
of the value of business receivables (table A6). In
contrast, companies with less than $5 million in
receivables accounted for 80 percent of the com
panies in the current survey, but held only 2
percent of the value of consumer receivables and
less than 1 percent of the value of business
receivables.
In the recent survey, the larger companies
continued to diversify their portfolios of receiv
ables, a trend first noted in 1970. In contrast, the
smaller companies remained highly concentrated
in consumer receivables, especially personal
cash loans. Neither the larger companies nor the
smaller firms had changed significantly the matu
rity distribution of their debt since the 1975
survey (table A7). The larger companies contin
ued to have a larger percentage of their liabilities
in long-term debt than did the smaller compa
nies. These smaller companies are less well
known and do not have the ready access to long
term capital markets that larger, nationally based
companies enjoy. With a smaller degree of diver
sification and a smaller portion of their liabilities
in long-term debt, the smaller companies re
mained less highly leveraged than the larger
ones. Equity accounted for about half the liabil
ities of the smaller companies in the 1980 survey
whereas it was only about one-seventh of the
liabilities of the larger companies.
□
Te c h n ic a l N o t e
The 1980 Survey of Finance Companies was
designed to collect data on the major assets and
liabilities of the universe of finance companies
engaged in making short- and intermediate-term
installment loans to consumers or businesses.
This survey differed from previous surveys in
that a statistical sample was selected from the list
of companies that submitted presurvey question
naires.
In the survey, a finance company was defined
as a company (including Morris Plan companies
but excluding banks, credit unions, savings and
loan associations, banks for cooperatives, and
mutual savings banks) the largest portion of
Survey o f Finance Companies, 1980
whose assets is in one or more of the following
kinds of receivables:
1. Sales finance receivables. Installment pa
per arising from retail sales of passenger cars and
mobile homes, and of other consumer goods,
such as general merchandise, apparel, furniture
and household appliances, or from outlays for
home improvement loans not secured by real
estate.
2. Personal cash loans to individuals and fa m
ilies. Unsecured cash loans (including loans to
pay for insurance policies) or cash loans secured
by insurance policies, autos already paid for, and
other collateral.
3. Short- and intermediate-term business re
ceivables. Loans on commercial accounts re
ceivable, inventory loans, factoring, lease fi
nancing, retail installment sales (or purchases) of
commercial, industrial, and farm equipment and
commercial vehicles, and wholesale financing of
consumer and business goods.
4. Junior liens on real estate. Loans, whatev
er the purpose, secured by junior liens (for
example, equity loans, second mortgages) on
real estate as evidenced by junior mortgages,
deeds of trust, land contracts, or other instru
ments.
Presurvey questionnaires were mailed to 5,851
names appearing on the mailing list.6 The num
ber of presurvey forms mailed and the major
categories into which the responses fell are
shown in the accompanying table. Information
Disposition of
forms
Number of
companies
Percent of
forms mailed
Total m ailed ........................
R e tu rn ed ..........................
U s a b le ..........................
Not usable....................
Postal re tu rn ............
In a c tiv e....................
Out of b u sin e ss___
Sold to another
firm ....................
Out of sco p e............
5,851
4,534
2,377
2,157
991
93
474
100.0
77.5
40.6
36.9
16.9
1.6
8.1
282
317
4.8
5.4
Not returned....................
1,317
22.5
was gathered on the size of the company, mea
sured by total receivables and the primary type
of activity—that is, sales receivables, personal
cash loans, and so on. Companies that responded
6.
T h e m a ilin g lis t fo r th e 1980 p r e su r v e y q u estio n n a ir e
w a s d e r iv e d fr o m th e 1975 su r v e y m a ilin g lis t, tra d e a s s o c ia
tio n r o ste r s , tra d e jo u r n a ls , a n d n e w sp a p e r s .
403
to the questionnaire with information that
showed that they were out of business or were
not a finance company or a subsidiary of a
finance company were removed from the list.
From the 2,377 usable responses, a stratified
random sample of 749 companies was selected
for the 1980 survey. The stratification was based
on size of total receivables (seven groups) and
primary activity type (five groups) to yield 35
strata. All finance companies with more than $25
million in total receivables were included in the
sample. Proportional allocation was used to ob
tain sample sizes in the remaining strata with
some judgmental adjustments to ensure that all
types and sizes were represented.
The following table summarizes the response
from the sample.
Disposition of
forms
Number of
companies
Percent of
forms mailed
Total m a ile d ..................................
R e tu rn e d ....................................
U s a b le ....................................
Not usable..............................
Out of business..................
Subsidiaries of other
finance companies . . .
Subsidiaries of b a n k s ___
Out of sc o p e......................
Refusals to answer................
749
523
469
46
6
100.0
69.8
62.6
6.1
.8
13
10
17
8
1.7
1.3
2.3
1.1
Not returned..............................
226
30.2
In order to obtain estimates of assets and
liabilities for the approximately 1,300 companies
that did not return presurvey forms, a stratified
random sample of 165 nonrespondents was se
lected. It was decided to spread out the collec
tion process somewhat uniformly across Federal
Reserve Districts, but giving those districts with
greater nonresponse slightly larger sample sizes.
The results of the sample were 48 that were
usable, 97 that did not belong in the finance
company universe, and 20 in existence that re
fused to supply information. Estimates of the
number of nonrespondents in existence as well
as their sizes were generated from these results.
Final universe estimates of assets and liabil
ities were derived by expanding the data report
ed by the stratified sample of 469. The heavy
concentration of receivables in a few large com
panies, all of which are included in the sample,
makes the dollar aggregates reasonably accurate
estimates of the amount and type of financing
extended by the industry.
404
A l.
Federal Reserve Bulletin □ May 1981
Assets and liabilities outstanding at finance companies by size of receivables, June 30, 1980
Millions of dollars
Balance sheet item
Size of company (in millions of dollars of short- and
intermediate-term loans outstanding)
All finance
companies
500 and over
100-499
25-99
5-24
1-4
Under 1
A ssets
Consumer receivables................................................
Retail passenger car p a p e r....................................
Mobile h o m e s..........................................................
Retail consumer g o o d s ..........................................
Revolving c re d it..................................................
Other retail consumer goods p a p e r ................
Personal cash lo a n s ................................................
Revolving c re d it..................................................
Other personal cash lo a n s ................................
77,260
27,118
4,832
22,702
16,161
6,541
22,609
589
22,021
65,128
25,948
4,363
18,978
13,766
5,212
15,838
382
15,457
7,310
324
248
3,054
2,257
797
3,684
16
3,668
2,671
427
153
306
3
303
1,784
118
1,667
1,029
208
56
240
135
105
525
68
457
687
175
10
69
0
69
434
3
432
436
36
2
56
0
56
343
3
340
Business receivables
Wholesale p a p e r......................................................
A utom obiles........................................................
Business, industrial, and farm equipm ent.. . .
All o th er................................................................
Retail p a p e r..............................................................
Commercial v eh icles..........................................
Business, industrial, and farm equipm ent___
Lease p ap er..............................................................
Auto paper............................................................
Business, industrial, and farm equipm ent___
All o th er...............................................................
Other business credit..............................................
Short-term ............................................................
Intermediate-term................................................
86,067
21,741
12,373
5,072
4,296
26,318
10,088
16,230
23,261
6,194
16,937
130
14,747
8,325
6,422
65,157
18,952
12,226
3,983
2,743
22,348
9,241
13,107
14,916
5,858
9,058
0
8,941
3,614
5,328
14,743
2,036
118
585
1,333
3,179
780
2,399
5,277
151
5,064
62
4,252
3,550
702
4,620
674
6
495
173
712
49
663
2,042
17
2,001
24
1,192
931
262
1,211
28
8
4
17
28
2
26
949
161
744
44
206
146
61
264
44
15
5
24
49
14
35
62
5
56
0
110
54
55
71
7
0
0
7
2
2
0
16
3
13
0
46
31
15
Real estate loans..........................................................
Secured by first liens..............................................
Secured by junior lie n s..........................................
11,831
1,380
10,451
9,144
915
8,229
1,357
289
1,068
739
116
623
455
39
415
105
8
97
31
13
19
Other accounts and notes receivable......................
8,183
7,590
313
216
25
16
23
Total receivables, g r o s s ............................................
Less reserves for unearned in co m e....................
Less reserves for lo s s e s ........................................
183,341
21,251
2,981
147,019
16,404
2,303
23,722
3,122
418
8,246
1,096
160
2,719
470
51
1,072
111
30
561
49
20
Total receivables, n e t ................................................
159,108
128,311
20,183
6,991
2,198
932
492
All other asse ts............................................................
15,917
11,636
2,535
954
329
147
316
Total assets, net............................................................
175,025
139,947
22,718
7,944
2,527
1,079
809
L iabilities and C apital
Loans and notes payable to b a n k s..........................
S hort-term ...............................................................
L ong-term ...............................................................
Commercial p a p e r ......................................................
Directly p la c e d ........................................................
Dealer p la c e d ..........................................................
Other short-term d e b t................................................
Other long-term d e b t..................................................
All other liabilities......................................................
Capital, surplus, and undivided p ro fits..................
15,458
7,885
7,573
52,328
43,232
9,095
10,627
52,898
18,363
25,350
7,677
4,036
3,641
45,662
41,537
4,125
6,747
46,367
14,574
18,919
4,018
1,691
2,327
5,277
1,320
3,957
2,250
4,702
2,615
3,856
2,439
1,456
983
1,227
262
965
1,136
1,186
719
1,238
969
477
492
143
95
49
257
400
283
475
272
168
104
14
14
0
156
156
136
345
83
58
25
4
4
0
81
87
36
517
Total liabilities, capital, and surplus........................
175,025
139,947
22,718
7,944
2,527
1,079
809
Mem o :
Short-term debt...........................................................
Long-term d e b t...........................................................
70,840
60,471
56,445
50,008
9,218
7,029
3,818
2,169
877
892
338
260
143
112
Number of com panies................................................
2,775
48
100
156
239
484
1,749
For definitions see pages 408-09.
Survey o f Finance C om panies, 1980
A2.
405
Direct loans made and paper purchased by finance companies during June 1980
millions of dollars
Size of company (in millions of dollars of short- and
intermediate-term loans outstanding)
All finance
companies
Type of loan
500 and over
100-499
25-99
5-24
1-4
Under 1
Consumer receivables............................................
Retail passenger car p a p e r................................
Mobile h o m e s......................................................
Retail consumer g o o d s ......................................
Revolving c re d it..............................................
Other retail consumer goods p a p e r ............
Personal cash lo a n s ............................................
Revolving c re d it..............................................
Other personal cash lo a n s ............................
5,675
1,800
103
2,224
1,621
603
1,547
41
1.507
4,538
1,723
87
1,784
1,315
469
944
12
932
651
12
9
358
282
76
271
0
271
272
35
5
30
0
30
201
23
178
96
15
2
34
25
9
45
6
40
65
11
0
9
0
9
44
0
44
53
3
0
9
0
9
41
0
41
Business receiv ab les..............................................
Wholesale p a p e r..................................................
A uto m o b iles....................................................
Business, industrial, and farm equipment .
All o th e r............................................................
Retail p a p e r..........................................................
Commercial v eh icles......................................
Business, industrial, and farm equipment .
Lease p ap er..........................................................
Auto p ap er........................................................
Business, industrial, and farm equipment .
All o th e r............................................................
Other business credit..........................................
S hort-term ........................................................
Interm ediate-term ............................................
15,306
6,169
4,577
754
838
1,577
529
1,048
970
272
691
7
6,590
5,617
973
11,564
5,595
4,534
512
549
1,361
489
871
546
257
289
0
4,062
3,167
895
2,717
349
37
71
240
170
35
135
180
4
174
2
2,019
1,978
41
695
200
1
168
31
41
2
39
66
2
63
1
389
360
28
170
2
2
0
1
3
0
3
87
9
75
3
78
73
5
140
20
3
2
15
2
1
1
91
1
90
0
27
24
3
19
2
0
0
2
1
1
0
0
0
0
0
15
14
1
Real estate loans......................................................
Secured by first lien s..........................................
Secured by junior lie n s......................................
530
92
438
378
64
314
60
13
47
53
11
42
26
2
24
11
1
11
1
0
1
Other accounts and notes receivable..................
1,068
1,013
43
11
1
0
0
17,493
3,472
1,030
293
216
74
Total receivables, g ro ss..........................................
22,578
For definitions see pages 408-09.
A3.
Consumer receivables outstanding at finance companies, midyears 1970, 1975, and 1980
Amount outstanding
Millions of dollars
Type of consumer receivable
Percentage change
Percentage of consumer
receivables
Mid-1970
Mid-1975
Mid-1980
1970-75
1975-80
Mid-1975
Mid-1980
Retail passenger c a r s ................
Mobile hom es..............................
Revolving c r e d it........................
In personal cash lo a n s..........
In other consumer goods___
Other personal cash lo an s........
All other consumer lo a n s ........
9,250
2,327
n.a.
n.a.
n.a.
12,380*
7,8162
9,938
3,461
5,752
n.a.
n.a.
14,7692
6,895
27,118
4,832
16,750
589
16,161
22,021
6,541
7.4
48.7
n.a.
n.a.
n.a.
19.3
-1 1 .8
172.9
39.6
191.2
n.a.
n.a.
49.1
-5 .1
24.3
8.5
14.1
n.a.
n.a.
36.2
16.9
35.1
6.3
21.7
.8
20.9
28.5
8.5
Total consumer credit................
31,773
40,814
77,260
28.5
89.3
100.0
100.0
1. May include small amounts of real estate receivables secured by
junior liens.
2. May include small amounts of revolving credit outstanding.
n.a. Not available.
For definitions see pages 408-09.
406
A4.
Federal Reserve Bulletin □ May 1981
Business receivables outstanding at finance companies, midyears 1970, 1975, and 1980
Amount outstanding
Percentage change
Millions of dollars
Type of business receivable
Mid-1970
Mid-1975
Mid-1980
Wholesale p ap er..........................
A utom obiles............................
Business, industrial, and farm
equipm ent........................
All o th er....................................
7,468
5,053
10,945
7,713
1,739
676
Retail p ap er..................................
Commercial v ehicles..............
Business, industrial, and farm
eq u ip m en t........................
Lease p ap er..................................
A utom obiles............................
Business, industrial, and farm
eq u ip m en t........................
All o th er....................................
rerceni oi loiai ousiness
receivables
Mid-1975
1970-75
1975-80
Mid-1980
21,741
12,373
46.6
52.6
98.6
60.4
27.9
19.6
25.3
14.4
1,960
1,273
5,072
4,296
12.7
88.3
158.8
237.5
5.0
3.2
5.9
5.0
6,563
3,090
11,067
5,012
26,318
10,088
68.6
62.2
137.8
101.3
28.2
12.8
30.6
11.7
3,473
6,055
16,230
74.3
168.0
15.4
18.9
3,802
1,403
8,065
2,343
23,261
6,194
112.1
67.0
188.4
164.4
20.5
6.0
27.0
7.2
2,299
99
3,950
1,772
16,937
130
71.8
1,689.9
328.8
-9 2 .7
10.1
4.5
19.7
.2
Other business credit..................
S hort-term ................................
Intermediate-term ....................
5,166
2,974
2,192
9,208
4,991
4,218
14,747
8,325
6,422
78.2
67.8
92.4
60.2
66.8
52.2
23.4
12.7
10.7
17.1
9.7
7.5
Total business receivables..........
22,999
39,286
86,067
70.8
119.1
100.0
100.0
For definitions see pages 408-09.
A5.
Liabilities and capital outstanding at finance companies, midyears 1970, 1975, and 1980
Amount outstanding
Percentage of total
Percentage change
liabilities and capital
Millions of dollars
Type of liability
Mid-1970
Mid-1975
Mid-1980
1970-75
1975-80
Mid-1975
Mid-1980
Bank lo a n s ................................
Short-term ..............................
Long-term..............................
7,551
6,581
969
8,617
7,900
718
15,458
7,885
7,573
14.1
20.0
-2 5 .9
79.4
-0 .2
954.7
9.7
8.9
0.8
8.8
4.5
4.3
Commercial p ap er....................
Directly placed......................
Dealer p laced ........................
22,073
19,247
2,826
25,905
23,686
2,218
52,328
43,232
9,095
17.4
23.1
-21.5
102.0
82.5
310.1
29.2
26.7
2.5
29.9
24.7
5.2
Other short-term debt..............
Other long-term d e b t ..............
All other liabilities....................
Capital and surplus..................
975
15,501
4,531
9,947
2,815
29,013
8,416
13,951
10,627
52,898
18,363
25,350
188.7
87.2
85.7
40.3
277.5
82.3
118.2
81.7
3.2
32.7
9.5
15.7
6.1
30.2
10.5
14.5
Total liabilities and capital. . . .
60,577
88,716
175,025
46.5
97.3
100.0
100.0
Short-term d e b t........................
Long-term d e b t ........................
29,629
16,470
36,620
29,730
70,840
60,471
23.6
80.5
93.4
103.4
41.3
33.5
40.5
34.5
Total d e b t..................................
46,100
66,350
131,311
43.9
97.9
74.8
75.0
Mem o:
For definitions see pages 408-09.
Survey o f Finance Com panies, 1980
A6.
407
Receivables outstanding at finance companies, midyears 1975 and 1980
Amount outstanding, millions of dollars
Size of company (gross receivables outstanding, millions of dollars)
1975
5 to 25
25 and over
All companies
Type of receivable
1975
1980
1980
1975
Under 5
1980
1975
1980
Consumer receiv ab les..............................................
Retail passenger car p a p e r ..................................
Mobile h o m e s ........................................................
Revolving consumer installment c r e d it............
In personal cash lo ans......................................
In other consumer g o o d s ................................
Other personal cash loans....................................
All other consumer installment loans....................
40,814
9,938
3,461
5,752
n.a.
n.a.
14,769
6,895
77,260
27,118
4,832
16,750
589
16,161
22,021
6,541
38,577
9,641
3,417
5,699
n.a.
n.a.
13,271
6,550
75,109
26,699
4,764
16,542
516
16,026
20,792
6,312
989
91
30
36
n.a.
n.a.
631
200
1,029
208
56
203
68
135
457
105
1,248
205
14
16
n.a.
n.a.
867
145
1,123
211
12
6
6
Business c r e d it..........................................................
Wholesale p a p e r....................................................
Automobiles........................................................
Business, industrial, and farm equipm ent. . .
All o th e r..............................................................
Retail p a p e r............................................................
Commercial v e h icles........................................
Business, industrial, and farm equipm ent. . .
Lease p a p e r............................................................
A utom obile........................................................
Business, industrial, and farm equipm ent. . .
All o th e r..............................................................
Other business cred it............................................
S hort-term ..........................................................
Intermediate-term..............................................
39,286
10,945
7,713
1,960
1,273
11,067
5,012
6,055
8,065
2,343
3,950
1,772
9,208
4,991
4,218
86,067
21,741
12,373
5,072
4,296
26,318
10,088
16,230
23,261
6,194
16,937
130
14,742
8,325
6,422
38,078
10,829
7,690
1,914
1,224
10,898
4,971
5,927
7,868
2,320
3,805
1,742
8,483
4,533
3,950
84,520
21,662
12,350
5,063
4,249
26,239
10,070
16,169
22,235
6,026
16,123
86
14,385
8,095
6,292
904
60
13
21
26
122
22
100
151
18
106
28
572
333
239
1,211
28
8
4
17
28
2
26
949
161
744
44
206
146
61
304
57
10
25
22
47
18
28
46
4
38
3
155
125
29
335
51
15
5
31
51
16
35
78
8
69
Real estate receiv ab les............................................
Secured by first lie n s............................................
Secured by second lie n s ......................................
1,946
1,513
264
455
39
415
169
1,513
11,240
1,320
9,920
264
1,946
11,831
1,380
10,451
169
136
21
116
Other receivables......................................................
3,948
8,183
3,875
8,119
37
25
36
39
Total receivables, g r o ss............................................
85,994
183,341
82,042
178,987
2,195
2,719
1,758
1,633
Number of com panies..............................................
3,376
2,775
190
304
204
239
2,982
2,233
772
125
156
85
70
For definitions see pages 408-09.
A l.
Liabilities and capital outstanding at finance companies, midyears 1975 and 1980
Amount outstanding, millions of dollars
Size of company (gross receivables outstanding, millions of dollars)
Type of liability
All companies
25 and over
5 to 25
Under 5
1975
1980
1975
1980
Loans and notes payable to banks___
Short-term ............................................
Long-term ............................................
Commercial p a p e r..................................
Directly placed....................................
Dealer p la c e d ......................................
Other short-term d e b t............................
Other long-term debt..............................
All other liabilities..................................
Capital and su rp lu s................................
8,617
7,900
718
25,905
23,686
2,218
2,815
29,013
8,416
13,951
15,458
7,885
7,573
52,328
43,232
9,095
10,627
52,898
18,363
25,350
7,314
6,869
446
25,799
23,607
2,192
2,288
28,429
7,867
12,911
14,134
7,183
6,951
52,166
43,119
9,047
10,133
52,255
17,908
24,013
783
654
130
85
59
26
351
292
257
423
969
477
492
143
95
49
257
400
283
475
519
377
141
20
20
*
176
291
291
618
355
226
129
18
18
*
237
243
172
862
Total liabilities and surplus....................
88,716
175,025
84,609
170,609
2,193
2,527
1,915
1,888
Short-term d e b t ......................................
Long-term d e b t ......................................
36,620
29,730
70,840
60,471
34,955
28,875
69,481
59,206
1,090
422
877
892
576
433
481
372
Total debt..................................................
66,350
131,311
63,831
128,687
1,512
1,769
1,009
853
1975
1980
1975
1980
Mem o :
For definitions see pages 408-09.
*Less than $500,000.
408
Federal Reserve Bulletin □ May 1981
D e f in it io n s
1. R eceivables include direct loans and paper purchased from
manufacturers, wholesalers, and retailers before deduction of re
serves for unearned income and losses. They include bulk purchases
of paper from vendors.
2. R etail passenger car p a p e r consists of credit arising from retail
sales of passenger cars to consumers. It excludes lease paper, fleet
sales, personal cash loans secured by automobiles already paid for,
and loans to finance the purchase of commercial vehicles and farm
equipment.
3. M obile homes credit consists of paper arising from the retail sale
of complete dwelling units built on a chassis and capable at time of
initial purchase of being towed over the highway by truck but not by
car. It excludes paper secured by real estate, lease paper, and paper
arising from retail sale of travel trailers.
4. R etail consumer goods consist of credit arising from retail sales
of consumer goods other than passenger cars and mobile homes. Such
goods include general merchandise, apparel, furniture, household
appliances, and so forth. They also include campers and trailers not
usable as homes as well as motorcycles, airplanes, helicopters, and
boats purchased for personal use as well as revolving credit retail
paper and automobile repair paper. Also included in this paper is
credit to finance alterations or improvements in existing residential
properties occupied by the borrower. Wholesale financing and lease
financing as well as loans secured by real estate are excluded.
a. Revolving credit consists of retail credit that is extended on a
credit-line basis and that arises from the sale of consumer goods other
than passenger cars and mobile homes. A single contract governs
multiple use of the account and purchases may be made with a credit
card. Generally, credit extensions can be made at the consumer’s
discretion, provided that they do not cause the outstanding balance of
the account to exceed a prearranged “ credit limit.”
b. Other retail consumer goods consist of all credit arising from
retail sales of consumer goods other than passenger cars and mobile
homes that is not extended on a revolving credit line basis.
5. Personal cash loans to individuals and fam ilies are secured and
unsecured loans made directly to the borrower for household, family,
or other personal expenses. They include unsecured loans to purchase
auto insurance policies as well as loans secured by insurance policies,
automobiles already paid for, and other collateral. They exclude loans
for business purposes, rediscounted loans, and loans secured by real
b.
B u sin ess, in d u stria l, a n d fa r m eq u ip m e n t includes credit aris
ing from the retail sale to business of (or from the purchase of)
business, industrial, and farm equipment. It includes all “ off-theroad” equipment for which motor vehicle licensing is not required. It
also includes airplanes, helicopters, and boats purchased for business
use. Loans may be secured by chattel mortgages or conditional sales
contracts (purchased money security agreements) on the machinery or
equipment. It excludes loans to purchase commercial land vehicles for
which motor vehicle licensing is required and loans secured by real
estate. It also excludes lease financing.
8. L e a s e p a p e r .
a. A u to s consist of credit arising from leasing of passenger cars
and commercial land vehicles. It excludes leasing of mobile homes,
campers, motor trailers, boats, airplanes, helicopters, and business,
industrial, and farm equipment.
b. B u sin ess, in d u stria l, a n d fa r m e q u ip m e n t consists of credit
arising from the leasing of business, industrial, and farm equipment. It
includes lease financing of all “ off-the-road” equipment for which
motor vehicle licensing is not required. It also includes lease financing
of airplanes, helicopters, and boats leased for business use. It ex
cludes lease financing of airplanes, helicopters, and boats leased for
personal or family use.
c. A ll o th e r is all other lease financing including credit arising
from the leasing of mobile homes, campers, and travel trailers.
9. O th er b u sin ess cred it.
a. O th er sh o rt-term b u sin e ss c r e d it includes business credit with
original maturities of less than one year. It includes loans secured by
commercial accounts receivable less the balances withheld from
customers pending collection of receivables. It also includes commer
cial accounts receivable purchased from factored clients less any
amount due and payable to factored clients. It includes secured and
unsecured advances of funds to factored clients.
b. O th er in te rm e d ia te -te r m b u sin ess cred it consists of business
credit with original maturities of 1 to 15 years. It includes dealer
capital loans, small loans used primarily for business or farm pur
poses, multi-collateral loans, rediscounted receivables of other fi
nance companies less balances withheld, and all other business loans
not elsewhere classified. It excludes loans secured by real estate
unless included as part of a multicollateral loan.
10. L o a n s s e c u r e d b y re a l e s ta te includes all loans secured by
junior liens on real estate as well as any first mortgage loans secured
estate.
by real estate.
a. R evolving credit is cash loans extended on a credit-line basis
a. S e c u r e d by f ir s t lien s includes all loans, whatever the purpose,
and perhaps with the use of a credit card. Generally, credit extensions
secured by first liens on real estate as evidenced by first mortgages,
can be made at the consumer’s discretion, provided that they do not
deeds of trust, land contracts, or other instruments.
cause the outstanding balance of the account to exceed a prearranged
b. S ecu red b y ju n io r lien s includes all loans, whatever the
“ credit limit.”
purpose, secured by junior liens (for example, “ equity loans,” or
b. Other personal cash loans consist of all secured and unse
“ second mortgages” ) on real estate as evidenced by junior mortgages,
cured loans made directly to the borrower for household, family, or
deeds of trust, land contracts, or other instruments.
other personal expenses that are not extended on a revolving credit
line basis.
11. O th er a c c o u n ts a n d n o te s r e c e iv a b le consist of all other receiv
6. W holesale financing.
ables not directly connected with domestic credit operations of the
consolidated finance companies.
a. A utos are credit arising from transactions between manufac
turers and dealers or other “ floor plan” loans secured by passenger
12. A m o u n t o f u n e a rn ed in co m e in clu d e d a b o v e includes unearned
cars and commercial land vehicles. It excludes paper secured by
discounts and service charges on the above receivables.
13. A llo w a n c e f o r lo s s e s consists of allowances for bad debts,
mobile homes, passenger car trailers, boats, airplanes, and helicop
unallocated charge-oflfs, and any other valuation allowances except
ters, and business, industrial, and farm equipment.
the amount of unearned income applicable to the receivables included
b. Business, industrial, and fa rm equipm ent consists of credit
above.
arising from transactions between manufacturers and dealers or other
“ floor plan” loans secured by business, industrial, and farm equip
14. A ll o th er a s s e ts include all assets not already included above
ment. It includes all “ off-the-road” equipment for which motor
such as consolidated companies’ investments in nonconsolidated
vehicle licensing is not required. It also includes airplanes, helicop
foreign and domestic subsidiaries and affiliates. Nonconsolidated
subsidiary and affiliate company claims on consolidated companies
ters, and boats.
should be netted against the consolidated companies’ investment.
c. A ll other includes all other wholesale financing including
Overdrafts
are excluded.
“ floor planning” transactions between manufacturers and dealers
15. B an k lo a n s consist of short- and long-term loans and notes
with mobile homes, campers, and travel trailers as security.
payable to banks. They include overdrafts, but exclude commercial
7. R etail paper.
a.
C om m ercial vehicles consists of credit arising from retail sales paper and bank portions of participation loans.
of commercial land vehicles to business. It includes trucks, buses,
16. D ire c tly p la c e d c o m m e r c ia l p a p e r includes negotiable promis
taxicabs, truck-trailers, and other “ on-the-road” vehicles for which
sory notes of large denominations sold directly to the investor and
issued for not longer than 270 days. It includes short-term “ m aster”
motor vehicle licensing is required. It also includes fleet sales of
notes.
passenger cars. It excludes lease financing and paper on business,
industrial, and farm equipment.
17. D e a le r p la c e d c o m m e r c ia l p a p e r consists of negotiable promis
Survey o f Finance Com panies, 1980
sory notes sold to or through commercial paper dealers and issued for
not longer than 270 days. It includes documented discount notes, that
is, commercial paper accompanied by an irrevocable letter of credit
issued by a bank.
18. S h o rt-term d e b t n o t else w h e re c la ss ifie d includes all other
short-term notes and loans payable. (Debt with an original maturity of
less than one year is classified as short-term). It excludes maturities of
long-term debt due in less than one year.
19. O th er lo n g -te rm d e b t consists of senior and subordinated long
term loans, notes, certificates, negotiable paper, or other indebted
ness not elsewhere classified, including that portion maturing in less
than one year. Debt with original maturity of one year or more is
409
classified as long-term debt even if the time remaining to maturity is
less than one year.
20. A ll o th e r lia b ilitie s are all liabilities not already reported above
or netted against assets. They include dealer reserves, all tax accruals,
short-term certificates of thrift or investment, and deposit liabilities
(other than those not withdrawable during term of loan) and all other
liabilities. They exclude liabilities of consolidated companies to non
consolidated subsidiary and affiliated companies. They exclude bor
rower repayment deposits accumulated but not credited against
indebtedness until repayment is made in full. Such deposits should be
netted against appropriate receivables in the assets section.
21. C a p ita l, su rp lu s , a n d u n d iv id e d p r o fits consist of all common
and preferred stock and other capital or surplus accounts, including
undivided profits.
410
Domestic Financial Developments
in the First Quarter of 1981
gates were little changed from the previous quar
ter and below the ranges set by the Federal Open
Market Committee for growth from the fourth
quarter of 1980 to the fourth quarter of 1981. The
rate of expansion of M-2 rose a bit in the first
quarter, as growth in its nontransaction compo
nent remained comparatively strong. The aver
age level of M-2 for the quarter was near the
midpoint of its annual growth range.
During the first quarter, the credit demands of
the U.S. Treasury surged above the already
elevated level of the fourth quarter, but borrow
ing by other domestic sectors was generally at or
slightly below the pace of late last year. Nonfi
nancial businesses markedly increased their issu
ance of bonds and reduced the growth of short-
This report , which was sent to the Joint Econom
ic Committee o f the U.S. Congress on M ay 12,
1981, highlights the im portant developm ents in
domestic financial markets during the winter and
early spring.
The expansion of money moderated in the first
quarter despite a further pickup in economic
activity and continued rapid inflation. The nar
rowly defined monetary aggregates, M-l A and
M-1B, were affected substantially by movements
of funds to negotiable order of withdrawal
(NOW) accounts, authorized nationwide at the
start of the year under the Monetary Control Act
of 1980. Adjusted for such shifting of balances,
average first-quarter levels of the narrow aggreInterest rates
Percent
21
SHORTTERM
LONG-TERM
19
17
Conventional mortgages
HUD
15
13
11
Treasury bills
3-month
Federal Reserve
discount rate
9
U.S. government bonds
7
State and local government bonds
5
Monthly averages except for Federal Reserve discount rate and
conventional mortgages (based on quotations for one day each
month). Yields: U.S. Treasury bills, market yields on three-month
issues; prime commercial paper, dealer offering rates; conventional
mortgages, rates on first mortgages in primary m arkets, unweighted
and rounded to nearest 5 basis points, from U.S. Department of
Housing and Urban Development; Aaa utility bonds, weighted aver
ages of new publicly offered bonds rated Aaa, Aa, and A by Moody’s
Investors Service and adjusted to Aaa basis; U.S. government bonds,
market yields adjusted to 20-year constant maturity by U.S. Treasury;
state and local government bonds (20 issues, mixed quality), B ond
Buyer.
D om estic Financial D evelopm ents 1981 :Q1
411
C h a n g e s in r e s e r v e s a n d m o n e ta r y a g g r e g a t e s
Based on seasonally adjusted data unless otherwise noted, in percent1
1980
Item
1978
1979
Ql
Member bank reserves2
T otal.............................................................
N onborrow ed..............................................
R e q u ired ......................................................
Monetary base3 ..........................................
Concepts of money4
M -1 A ...........................................................
Adjusted5..................................................
M -1 B ............................................................
Adjusted5..................................................
M -2...............................................................
M -3...............................................................
Nontransaction components of M-2
Total (M-2 minus M -1 B )..........................
Small time deposits................................
Savings deposits......................................
Money market mutual fund
shares (n .s.a .).................................
Overnight RPs and overnight
Eurodollar deposits (n .s.a .)..........
Memo (change in billions of dollars)
Managed liabilities at commercial
banks ........................................................
Large time deposits, gross........................
Nondeposit funds........................................
Net due to foreign related
institutions........................................
Other6........................................................
U.S. government deposits at
commercial b a n k s ..............................
6.2
6.3
6.3
9.1
2.6
.3
2.4
7.8
1981
1980
Q2
Q3
Q4
Ql
6.8
7.3
6.5
8.7
4.1
3.3
4.9
8.3
- .5
11.7
- .2
5.3
9.1
10.3
8.2
10.1
13.8
3.3
12.5
9.9
0
5.5
.5
5.0
7.4
5.0
5.0
5.2
-4 .8
11.5
8.0
8.1
7.6
7.3
6.8
-2 .9
13.9
10.9
8.3
11.2
8.9
9.7
9.9
10.0
' ’ 8.9
9.1
5.4
6.0
15.7
13.1
8.1
10.3
-18.6
.3
6.6
1.1
8.2
11.9
8.3
16.1
- .7
9.4
23.0
-12.0
10.7
15.4
-4 .6
9.7
17.9
-16.4
8.1
23.4
-23.1
16.4
3.4
22.7
7.2
13.8
- .5
8.7
23.2
-31.0
163.9
324.2
90.3
151.9
82.7
75.7
-15.5
84.5
25.4
17.2
21.8
9.0
-57.4
135.6
15.4
-12.3
77.6
50.2
27.4
57.5
19.4
38.1
15.3
21.8
-6 .5
10.3
5.3
5.0
-2 .2
7.3
-9 .5
-10.2
-2 .0
-8 .2
17.4
11.2
6.2
25.7
21.3
4.4
6.9
20.5
25.1
13.0
-22.9
16.4
-2 .3
7.3
-8 .6
- .9
-11.5
3.2
- .5
6.8
-2 .6
7.0
3.6
1.1
.6
1.8
-1 .4
1.8
-1 .6
- .5
1. Changes are calculated from the average amounts outstanding in
each quarter.
2. Annual rates of change in reserve measures have been adjusted
for regulatory changes in reserve requirements and, in 1980 and 1981,
for distorting effects of changes in the level of weekend Eurodollar
transactions.
3. Consists of total reserves (member bank reserve balances in the
current week plus vault cash held two weeks earlier), currency in
circulation (currency outside the U.S. Treasury, Federal Reserve
Banks, and the vaults of commercial banks), and vault cash of
nonmember banks.
4. M-l A is currency plus private demand deposits net of deposits
due to foreign commercial banks and official institutions. M-1B is M1A plus other checkable deposits (negotiable order of withdrawal
accounts, accounts subject to automatic transfer service, credit union
share draft balances, and demand deposits at mutual savings banks).
M-2 is M-1B plus overnight repurchase agreements (RPs) issued by
commercial banks, overnight Eurodollar deposits held by U.S. non
bank residents at Caribbean branches of U.S. banks, money market
mutual fund shares, and savings and small time deposits at all
depository institutions. M-3 is M-2 plus large time deposits at all
depository institutions and term RPs issued by commercial banks and
savings and loan associations.
5. The observed data for M-l A and M-1B in the first quarter were
affected by shifts of funds to NOW accounts, introduced nationwide at
the start of the year. The observed series must be adjusted to measure
the underlying behavior of the narrow money supply, abstracting from
such shifts. Information currently available suggests that, on average
in the first quarter, roughly three-fourths of the increase in other
checkable deposits in excess of “ trend” came from demand deposits
and the remainder came from savings accounts and other sources.
These estimates of shift-adjusted M-l A and M-1B growth are subject
to revision as more information becomes available.
6. Consists of borrowings from other than commercial banks
through federal funds purchased and securities sold under repurchase
agreements plus loans sold to affiliates, loans sold under repurchase
agreements, and other borrowings. Changes after October 1980 esti
mated using partial data.
term debt—borrowing in total about as much as
in the preceding quarter. The shift toward long
term borrowing by business firms apparently
reflected the desire to strengthen balance sheets,
with the cost of long-term borrowing remaining
high through the quarter. In light of prevailing
interest rate relationships, demand for short
term business credit moved to the commerical
paper market, and business lending at U.S.
banks decelerated sharply. Borrowing by house
holds diminished over the quarter; a drop-off in
residential mortgage flows more than offset an
increase in the growth of consumer installment
credit. Despite a sharp curtailment of offerings of
mortgage revenue bonds, total borrowing by
state and local governments declined only slight-
n.s.a. Not seasonally adjusted.
lyGiven the behavior of the money stock—and
particularly of reservable deposits—expansion of
nonborrowed reserves outpaced bank demands
for reserves through most of the quarter. Conse
quently, discount-window advances fell consid-
412
Federal Reserve Bulletin □ May 1981
erably, and the federal funds rate declined from
more than 20 percent in early January to less
than 13^2 percent in late March before returning
to the area of 15 to 16 percent in early April.
Other short-term market rates fell 4 to 7 percent
age points by late March and then rose moderate
ly. Intermediate- and long-term interest rates
posted comparatively small movements over the
quarter, despite the large declines in short-term
interest rates. Many bond yields reached all-time
highs in early April, reflecting investor concern
about inflation, uncertainty about the features of
the economic policies of the new administration,
and the heavy long-term credit demands of both
private and public borrowers. In mortgage mar
kets, interest rates on funds committed to con
ventional loans moved up about Vi percentage
point to 15 Vi percent in early April.
Components of
bank credit
Major categories of
bank loans
Change, billions of dollars
TREASURY SECURITIES
BUSINESS
16
n 11n
0
8
OTHER SECURITIES
nnnn.B
TOTAL LOANS
+
0
II
0
40
32
REAL ESTATE
24
16
a im
CONSUMER
+
0
IT
w
M
A ggregates
B a n k C r e d it
onetary
and
8
The massive shifts of funds to NOW accounts in
the first quarter caused a sharp divergence in the
growth rates of M-1A, which does not include
NOW accounts, and M-1B, which does. Survey
data from depository institutions and households
suggest that roughly three-fourths of the spurt of
growth in NOW balances came from funds previ
ously held in demand deposits, thus severely
depressing the observed growth of M-1A. When
adjustment is made for this effect, the average
level of M-1A is about unchanged from the
preceding quarter. A similar adjustment can be
made to the level of M-1B to deduct balances
that would have been held in savings deposits
and other assets had NOWs not become avail
able nationwide. So adjusted, M-1B also would
have been about unchanged from its fourthquarter level.
The weakness in the narrow monetary aggre
gates, so adjusted, occurred during a period of
rapid increase in nominal spending—indeed, the
rise in the velocity of the M-l measures (that is,
GNP divided by adjusted M-1A or M-1B) was the
largest in 30 years. In part, this behavior may
have reflected an ordinary lagged response to the
rise in interest rates late in 1980. However, the
adjusted narrow monetary measures in the first
NONBANK
f in a n c ia l
- . 1 1 , 1 , 11 - .. o
u
I
Ql
Q2
Q3
1980
Q4
...n
4
+
0
_,
24
Ql
1981
Ql
Q2
1980
Q3
Q4
Ql
1981
Seasonally adjusted. Total loans and business loans are adjusted for
transfers between banks and their holding companies, affiliates,
subsidiaries, or foreign branches.
quarter were much weaker than would have been
expected on the basis of historical relationships
among money, interest rates, and income. The
advent of NOW accounts and record interest
rates quite conceivably stimulated some reas
sessment by the public of its cash management
practices, similar to that following the introduc
tion in late 1978 of automatic transfers from
savings accounts (ATS).
M-2 in the first quarter grew slightly more
rapidly than in the preceding quarter due to
higher growth in the nontransaction component
of this measure. Savings deposits, little changed
in the fourth quarter, fell sharply, but on a
quarterly average basis, growth of small-denomination time deposits accelerated owing to large
inflows early in the quarter. As market interest
rates declined, however, inflows to small time
deposits—including those with market-linked
Dom estic Financial D evelopm ents 1981 :Q1
yields—dropped off at both banks and thrift
institutions. With growth of total savings and
small time deposits slower than in the fourth
quarter, expansion in the nontransaction compo
nent of M-2 was largely sustained by the resump
tion of growth in shares of money market mutual
funds. Such shares accounted for about threequarters of the growth of M-2 between December
and March.
M-3 expanded in the first quarter somewhat
above the strong pace of the previous quarter, as
banks stepped up issuance of large-denomination
time deposits to finance credit expansion in the
face of weakness in consumer-type deposits.
However, when demand for bank loans weak
ened through the quarter, banks reduced their
issuance of large time deposits and by March
were paying down some of these deposits as they
matured.
On a quarterly average basis, total reserves
available to banks and thrift institutions did not
increase during the first three months of the year,
reflecting weakening demands for reserves as
growth in deposits slowed and excess reserves
returned to more normal levels. Holdings of ex
cess reserves had risen in late 1980, apparently in
association with implementation in November of
the reserve aspects of the Monetary Control Act.
The System provided nonborrowed reserves in
the first quarter at a slightly greater pace than
that of the preceding quarter. Thus, with de
mands for reserves by depository institutions
declining over the quarter, borrowing at the
Federal Reserve discount window fell from
about $1.7 billion in December to less than $1
billion by mid-March.
Growth in bank credit slowed in the first
quarter to about half its rapid fourth-quarter
pace; indeed, a small contraction occurred in
March. The weakness in bank credit largely
reflected a sharp deceleration in growth of busi
ness loans from domestic offices of U.S. banks.
Real estate lending slowed only slightly in the
first quarter, while consumer lending contracted
as it had during most of 1980. Bank acquisitions
of U.S. Treasury obligations rose a bit in the
quarter, in part reflecting a substantial buildup in
January and February of holdings in trading
accounts at dealer banks. Bank purchases of
other securities declined during the quarter.
B
u s in e s s
413
Fin a n c e
Gross public offerings of corporate notes and
bonds totaled $45 billion at a seasonally adjusted
annual rate in the first quarter, substantially
higher than the fourth-quarter pace. Nonfinan
cial businesses, principally industrial concerns,
accounted for all of the increase, roughly matchGross offerings of new security issues
Seasonally adjusted annual rates, in billions of dollars
1980
1981
Type of security
Domestic corporate........................
Publicly offered b o n d s ..............
Nonfinancial............................
F in an cial..................................
Privately offered bonds..............
Stocks............................................
Foreign..............................................
State and local
government b o n d s..................
Qi
Q2
Q3
Q4
Q le
65
29
25
4
18
18
2
82
56
41
15
9
17
6
76
44
36
8
10
22
3
61
28
18
10
8
25
3
71
45
37
8
6
20
2
32
58
57
43
36
e. Estimated.
ing the decline in their borrowing in short- and
intermediate-term markets. The issuance of
bonds was heavy throughout the quarter despite
the high levels of bond yields, suggesting that
corporations either did not expect a substantial
near-term decline in rates or were unable to
delay such borrowing. Some funding of short
term debt with capital market offerings was ac
complished during the brief downturn in eco
nomic activity in 1980, but the volume of bond
offerings then was insufficient to alter apprecia
bly corporate reliance on short-term obligations.
Many corporate borrowers adjusted the terms of
their debt offerings in the first quarter to try to
limit their costs of funds. The adjustments in
cluded a shortening in maturities, an increased
volume of convertible debentures, and the use of
deeply discounted bonds.1
In contrast to publicly offered debt securities,
private placements of corporate bonds are esti
mated to have remained sluggish in the opening
quarter of the year, as life insurance compa-
1.
“ D e e p d is c o u n t’ ’ o r “ orig in a l is s u e d is c o u n t ” b o n d s are
a ttra ctiv e to s o m e in v e s to r s b e c a u s e th e d is c o u n t im p lic itly
p r o v id e s s u b sta n tia l c a ll p r o te c tio n an d th e b e lo w -m a r k e t
c o u p o n r e d u c e s r e in v e s tm e n t risk .
414
Federal Reserve Bulletin □ May 1981
Business loans and short- and intermediate-term
business credit
Seasonally adjusted annual rates of change, in percent1
Period
Business loans
at banks2
Short- and
intermediate-term
business credit3
1974.................
1975.................
1976.................
1977.................
1978.................
1979.................
1980.................
19.3
-3.8
1.2
10.5
16.0
18.1
11.4
23.5
-4.0
4.5
13.6
18.3
20.5
12.4
1979-Q1
Q 2 .........
Q 3 .........
Q 4 .........
21.0
18.1
20.4
8.6
21.1
19.8
26.5
8.9
1980-Q1
Q 2 .........
Q 3 .........
Q 4 .........
17.5
-9.3
15.3
21.1
22.2
.9
9.3
15.5
8.1
13.1
1981-Q1
1. Growth rates calculated between last months of period.
2. Based on monthly averages of Wednesday data for domestically
chartered banks and an average of current and previous month-end
data for foreign-related institutions. Adjusted for outstanding amounts
of loans sold to affiliates. Includes holdings of bankers acceptances.
3. Short- and intermediate-term business credit is business loans of
commercial banks plus nonfinancial commercial paper plus finance
company loans to businesses and bankers acceptances outstanding
outside banks. Commercial paper is prorated average of Wednesday
data. Finance company loans and bankers acceptances outstanding
are averages of current and previous month-end data.
nies—the principal suppliers of private place
ment financing—continued to experience liquid
ity pressures. A continuing high level of policy
loans, together with uncertainty regarding future
rate movements, has made insurers reluctant to
acquire long-term fixed-rate assets. At the begin
ning of this year, the amount of outstanding
insurance company commitments to buy bonds
was less than half its level at the beginning of
1980.
Following a dip early in the quarter, stock
prices moved sharply higher in March; the major
indexes finished the quarter 1 to 4 percentage
points above year-end levels. In this environ
ment, corporations continued to issue large
amounts of equity shares in the first quarter—$20
billion at a seasonally adjusted annual rate—with
industrial firms accounting for roughly half of the
total.
In short-term markets, businesses found bor
rowing through the issuance of commercial paper
increasingly attractive during the first quarter as
the spread widened between the slowly declining
prime rate and rapidly falling paper rates. Out
standing commercial paper rose in the first quar
ter after having contracted in the preceding two
quarters when the spread of the prime rate over
the commercial paper rate was exceptionally
narrow.
As demands for business loans softened, some
large banks eased their compensating balance
requirements and in some cases reduced mark
ups over the prime rate, according to the senior
loan officer opinion survey on bank lending prac
tices taken in mid-February. To a small extent,
banks also met the competition from the com
mercial paper market more directly by increasing
their below-prime lending, according to the quar
terly survey of terms of bank lending. Such loans
typically are large, short-term credits—often
overnight—to firms that have access to the com
mercial paper market. Nonetheless, business
loans at large banks contracted in the first quar
ter. Some of the decline in lending booked do
mestically was offset by increased loans to U .S .domiciled business firms by foreign branches of
U.S. banks, as firms took advantage of relatively
attractive Eurodollar rates that, like commercial
paper rates, fell more quickly than the prime rate
in the first quarter.
G o v e r n m e n t F in a n c e
The gross volume of bonds issued by state and
local governments fell about 15 percent in the
first three months of this year, with the weakness
concentrated in housing-related issues. The vol
ume of mortgage revenue bonds brought to mar
ket fell from an average of $3.2 billion per quarter
last year to $700 million in the first quarter, as
statutory restrictions on these offerings took
effect on January 1, 1981.2 The volume of non
housing issues increased in the first quarter with
the sale of a number of issues that had been
2.
The restrictions establish several criteria that must be
met if interest paid on a mortgage revenue bond is to remain
exempt from the federal income tax. The criteria include
limitations on the volume o f mortgage revenue bonds issued
by governmental units, restrictions on the spread between
mortgage rates and the original cost o f borrowing, and
various other limitations on eligibility with respect to the
value and location o f homes and the types o f homebuyers.
Dom estic Financial D evelopm ents 1981 :Q1
deferred from the fourth quarter when housingrelated issues dominated municipal market activ
ity and municipal bond rates reached record
levels. Yields on municipal bonds fell sharply in
late December and early January, but throughout
the rest of the quarter the yields retraced much of
that decline.
In the first quarter, the combined federal bud
get deficit exceeded $38 billion, and the Trea
sury’s financing needs were augmented $2 billion
by redemptions of savings bonds. The Treasury
raised about $38 billion by selling marketable
securities in the first three months of the year,
meeting the rest of its requirements with a fur
ther rundown in its cash balance. The net in
crease in marketable debt was about evenly
divided between coupon and bill issues; about
half of the bills were scheduled to mature in the
second quarter with the seasonal rise in Treasury
tax receipts.
Federally sponsored credit agencies borrowed
$2.6 billion (not seasonally adjusted) in the first
quarter, less than half of the average for the first
quarter in the past few years. The slowing in
agency borrowing was substantial at the Federal
Farm Credit Banks and the Federal National
Mortgage Association (FNMA). Cutting its bor
rowing almost $1 billion, FNMA made virtually
no net mortgage purchases in the first quarter.
This reflected both low levels of outstanding
commitments by FNMA and rates on these com
415
mitments at or above market rates on mortgages.
Borrowing by the Federal Home Loan Banks,
about $1.5 billion, was at the same first-quarter
pace as in recent years. The Federal Home Loan
Banks used this borrowing to rebuild liquidity
and to finance advances of about $200 million
over the quarter. (The increase in advances
outstanding was quite sizable on a seasonally
adjusted basis, reflecting the weakness of deposit
flows at thrift institutions.)
M
ortgage a n d
C o n s u m e r F in a n c e
Net mortgage formation dropped sharply in the
first quarter. Much of this reduction reflected
cutbacks in lending by thrift institutions, which
in the aggregate experienced net outflows of
deposits before crediting interest to deposits and
a further erosion of earnings positions. Commer
cial banks reduced their net mortgage lending
about one-third, after a strong pickup in the
fourth quarter.
The higher cost and relative scarcity of mort
gage credit have encouraged the use of a number
of “creative” financing techniques. Arrange
ments whereby individual home sellers “take
back” a second mortgage in order to facilitate
the assumption of low-rate first trusts have be
come increasingly widespread. In addition, lend
ing institutions have used “wraparound” agree
Federal government borrowing and cash balance
Not seasonally adjusted, in billions of dollars
1979
1980
1981
Item
Treasury financings
Budget surplus, or deficit ( - ) ..........
Off-budget deficit1................................
Combined d e fic it................................
New cash borrowings, or
repayments ( - ) ............................
Other means of financing3..................
Change in cash balance......................
Federally sponsored credit agencies,
net cash borrowings4 ..................
Qi
Ql
Q2
Q3
Q4
Ql
-2 0 .4
-3 .0
-23.4
-27.1
-3 .8
-30.9
8.1
-4 .4
3.7
-15.4
-4 .9
-20.3
-3 3 .6
-2 .2
-35.8
-32.1
-6 .4
-38.5
-19.1
4.1
-7 .7
5.4
-3 .2
5.9
27.1
.1
6.9
27.7
- .6
-8 .7
35.8
1.1
-1 .6
8.6
5.1
2.2
8.9
10.62
4.2
-8 .6
6.3
1. Includes outlays of the Pension Benefit Guaranty Corporation,
Postal Service Fund, Rural Electrification and Telephone Revolving
Fund, Rural Telephone Bank, Housing for the Elderly or Handi
capped Fund, and Federal Financing Bank. All data have been
adjusted to reflect the return of the Export-Import Bank to the unified
budget.
2. Includes $2.6 billion of borrowing from the Federal Reserve on
March 31, which was repaid April 4 after enactment of a new debtceiling bill.
2.6e
3. Checks issued less checks paid, accrued items, and other trans
actions.
4. Includes debt of the Federal Home Loan Mortgage Corporation,
Federal Home Loan Banks, Federal Land Banks, Federal Intermedi
ate Credit Banks, Banks for Cooperatives, and Federal National
Mortgage Association.
e. Estimated.
416
Federal Reserve Bulletin □ May 1981
ments that combine existing first mortgages with
new second mortgages at higher interest rates to
achieve overall financing packages below current
rates on new mortgages. However, the use of
assumptions and other creative financing tech
niques that allow low-rate loans to remain out
standing has been limited in some states by
lender enforcement of “ due-on-sale” clauses in
first mortgages that terminate the mortgage
agreement on sale of the property used in secur
ing the loan.
New mortgage lending commitments by de
pository institutions also were down substantial
ly from the fourth-quarter pace. The volume of
new commitments at savings and loan associa
tions in March was only about half the Septem
ber 1980 peak. By early April, the average inter
est rate on new commitments for conventional,
fixed-rate home mortgages had risen to 15 V2
percent, and the ceiling rate for level-payment
mortgages underwritten by the Federal Housing
Administration and the Veterans Administration
was raised from 13 V2 percent in March and to
141/2 percent in April.
Consumer installment credit outstanding ex
panded at about a 6 percent annual rate in the
first quarter, extending the slow recovery in
consumer credit into its third consecutive quar
ter. Finance companies, led by subsidiaries of
automobile manufacturers, paced the growth,
Net change in mortgage debt outstanding
Seasonally adjusted annual rates, in billions of dollars
1981
1980
Mortgage debt
Ql
Q2
Q3
Q4
Qie
151
104
47
74
44
30
123
95
28
152
116
36
128
94
34
5
12
39
-1
11
29
45
1
10
9
16
1
41
20
33
1
10
4
14
2
44
By type o f debt
T otal..........................................
Residential............................
Other1....................................
By type o f holder
Commercial b an k s..................
Savings and l o a n s ..................
Mutual savings b a n k s............
Life insurance companies . . .
FNMA and G N M A ................
GNMA mortgage p o o l s ........
FHLMC and FHLMC pools .
Other2........................................
32
26
2
16
12
18
3
42
*
*
13
8
17
3
28
*
19
5
38
1. Includes commercial and other nonresidential as well as farm
properties.
2. Includes mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds,
noninsured pension funds, credit unions, Farmers Home Administra
tion and Farmers Home Administration pools, Federal Land Banks,
Federal Housing Administration, Veterans Administration, and indi
viduals.
e. Partially estimated.
* Between $0.5 billion and $ -0 .5 billion.
posting a 21 percent rate of increase. At commer
cial banks, consumer lending contracted again as
bank rates for installment loans—especially for
automobile financing—rose sharply during the
first quarter to about the record level of last
spring. Loan rates at automotive finance compa
nies increased less, probably because of efforts
to bolster car sales by the parent firms.
□
417
Industrial Production
R e le a s e d f o r p u b lic a tio n M a y 15
Industrial production increased an estimated 0.4
percent in April, after upward revised changes in
February and March of -0 .1 and 0.5 percent
respectively. In April, increases in output were
widespread among most market groupings, but
the coal strike reduced the growth in the total
index about 0.3 percentage point. At 152.8 per
cent of the 1967 average, the April index was 3.0
percent above its level a year earlier and 0.5
percent below its prerecession peak in March
1979.
In market groupings, output of consumer
goods rose 0.8 percent in April, as auto assem
blies increased about 5 percent to an annual rate
of 6.8 million units. Production of home goods,
such as appliances, edged off, but output of
consumer nondurable goods advanced further.
Production of business equipment, particularly
manufacturing, commercial, and building and
mining equipment, increased sharply in both
March and April. The rise in defense equipment
also was large in April. Output of construction
supplies was little changed for the third succes
sive month; production of these supplies was
about 8 percent below the level in March 1979.
Production of total materials declined 0.3 per
cent in April, reflecting a drop of 50 percent in
1967 = 100
p Preliminary.
e Estimated.
Seasonally adjusted, ratio scale, 1967= 100
Federal Reserve indexes, seasonally adjusted. Latest figures: April.
Auto sales and stocks include imports.
Percentage change from preceding month
Mar.p
Apr.e
Dec.
Jan.
Feb.
Mar.
Apr.
Percentage
change,
Apr. 1980
to
Apr. 1981
152.2
151.2
149.4
148.5
142.8
150.8
180.4
100.8
157.7
147.6
153.9
152.8
152.4
150.9
149.7
143.8
152.0
182.6
102.0
158.1
147.5
153.4
1.1
.8
.5
- .2
-1.1
.1
1.9
.9
1.7
1.3
1.4
.5
.3
.0
- .3
-1 .8
.2
.6
.3
1.0
1.9
.8
- .1
- .2
- .3
- .1
.1
- .2
- .4
- .6
-.1
-.1
.1
.5
.8
1.0
1.0
2.7
.4
1.2
.4
.1
.2
- .1
.4
.8
1.0
.8
.7
.8
1.2
1.2
.3
- .1
- .3
3.0
4.0
3.8
3.0
5.5
2.2
4.8
4.5
4.8
5.8
1.6
1980
1981
Grouping
Total industrial production . . .
Products, t o t a l ........................
Final products......................
Consumer goods..............
D urable..........................
N ondurable..................
Business equipm ent........
Defense and sp a ce ..........
Intermediate p ro d u cts........
Construction supplies . . .
M a terials..................................
coal output. Output of durable goods materials
rose nearly 1 percent in April; this advance,
reflecting gains in the output of parts for consum
er durables and for equipment, was not quite so
large as that in March. Production of nondurable
goods materials, such as paper and textiles,
increased slightly in April, after declines in the
N ote.
Indexes are
1981
seasonally adjusted.
418
Federal Reserve Bulletin □ May 1981
Major market groupings
1967 = 100
Mar.p
Apr.e
Dec.
Jan.
Feb.
Mar.
Apr.
Percentage
change,
Apr. 1980
to
Apr. 1981
151.9
142.4
165.6
142.9
169.3
152.8
143.6
166.2
135.9
170.2
1.0
.9
1.0
2.4
- .7
.3
.6
.1
1.3
.4
.0
- .6
.7
1.1
-1 .7
.5
1.3
- .4
.1
.7
.6
.8
.4
-4 .9
.5
3.3
3.8
2.8
2.1
.7
1981
Grouping
Manufacturing..........................
Durable..................................
N ondurable..........................
Mining.......................................
Utilities......................................
p Preliminary.
e Estimated.
Percentage change from preceding month
N o t e . Indexes
1980
are seasonally
two preceding months. Output of energy materi
als excluding coal was about unchanged; includ
ing coal, it declined 4.5 percent.
In industry groupings, manufacturing output
increased 0.6 percent in April, after a similar rise
in March. Durable goods manufacturing ad
vanced 0.8 percent in April, reflecting rises in
1981
adjusted.
production of machinery, fabricated metals, and
autos and related parts. Production by nondura
ble goods industries increased 0.4 percent, after
a decline of that magnitude in March. Mining
output fell almost 5 percent because of the coal
strike. Output of utilities increased 0.5 percent in
April.
419
Statements to Congress
Statem ent by Frederick H. Schultz, Vice Chair
man, Board o f Governors o f the Federal Reserve
System , before the Com m ittee on Banking,
Housing, and Urban Affairs, U.S. Senate,
April 28, 1981.
It is a pleasure to appear before this committee to
discuss briefly the condition of the banking sys
tem, to make some general remarks about the
regulation of banking, and to present the Federal
Reserve Board’s views concerning recently en
acted statutes affecting the banking industry.
As you know, quite a number of major pieces
of banking legislation have been enacted into law
over the past several years. Some of these new
laws are already having a far-reaching effect on
financial institutions and will cause even greater
changes in the years ahead. Others will have less
dramatic impact on the structure of our financial
system, but will affect, on an ongoing basis, the
day-to-day conduct of business. It is, of course,
not possible to assess fully the impact of these
laws at this early date. However, we can provide
some general thoughts on our experience and can
identify some areas where adjustments may be
needed. This discussion appears in the appen
dix.1 I will confine my remarks to the condition
of the banking system and the general—and very
difficult—issue of the appropriate extent of gov
ernment regulation of banking.
C o n d it io n
o f the
B a n k i n g S y st e m
During the past year or so, commercial banks
have had to operate in a particularly difficult
economic and financial environment. In the
spring of last year, the economy was subjected to
an unusually sharp recession and a rapid rise in
unemployment. While this economic downturn
1. The appendix to this statement is available on request
from Publications Services, Board of Governors o f the Feder
al Reserve System, Washington, D.C. 20551.
fortunately proved to be short lived, it still left
banks with some problem credits. This past year
banks also have had to contend with unusually
volatile interest rates. These volatile rates have
severely tested the ability of bank management
to maintain interest margins through a careful
balancing of rate-sensitive assets and rate-sensitive liabilities. Banks also have had to cope with
the nationwide introduction of interest-bearing
negotiable order of withdrawal (NOW) accounts,
as well as a continuing shift from low-cost sav
ings deposits to much higher-cost money market
certificates. Finally, banks have encountered
sharply increased competition from money mar
ket mutual funds, foreign banks, thrift institu
tions, and the commercial paper market. This
increased competition has tended to put down
ward pressure on bank profit margins.
Overall, commercial banks appear to have
come through these difficult times quite well.
The number of bank failures last year was below
the level experienced in the mid-1970s, and con
tinues to be well within the acceptable range.
Moreover, our examinations of state member
banks last year revealed that these banks were in
generally good financial condition, with only 2
percent receiving an unsatisfactory overall ex
amination rating. Also, even in the face of the
considerable adversity that banks experienced
this past year, bank earnings in 1980 reached an
all-time high of $14 billion, up 9 percent over
1979.
Amid these generally favorable results, how
ever, several recent unfavorable developments
have occurred that should not be ignored. First,
evidence exists of some deterioration in the
quality of bank loan portfolios. This deteriora
tion was reflected in a 40 percent increase in
banks’ net loan charge-offs last year. Major
factors contributing to higher charge-offs were
sizable write-downs of several large corporate
credits and a sharp rise in consumer loan de
faults. Problems in the consumer credit area are
due partly to higher unemployment and heavier
420
Federal Reserve Bulletin □ May 1981
debt service burdens, and partly to the recently
liberalized personal bankruptcy laws. Some con
cern has been expressed about the continuing
large balance of payments deficits and financing
needs of some countries that are already heavily
indebted to U.S. or to other banks. Over the near
term, loans to several of these countries may
have to be rescheduled. However, it should be
noted that U.S. bank loan losses in the interna
tional area have been relatively low in recent
years, and that the exposure of U.S. banks to
developing countries that are not members of the
Organization of Petroleum Exporting Countries,
relative to their capital, has not increased signifi
cantly in the last several years. All in all, given
the continuing high level of consumer bankrupt
cies and the financial problems experienced by
some relatively large as well as small businesses,
it seems possible that loan losses this year may
well equal or exceed the 1980 experience.
A second area of concern is the continuing
attrition in the capital ratios of many of our
largest banks. This downtrend, while apparently
slowing, has continued with little interruption for
the last decade or so. Though earnings capacity
provides the first line of defense against unex
pected asset problems, shrinking capital ratios
also mean that a smaller cushion exists to absorb
large losses and protect those who have supplied
funds—many in amounts well above insurance
protection by the Federal Deposit Insurance
Corporation—to these large banks. Given the
difficult economic and financial environment, the
Board believes that further declines in the al
ready low capital ratios of large banks generally
must be resisted as a matter of regulatory policy.
Indeed, we should strive for some improvement
over the next few years.
It is, of course, difficult for many banking
organizations to go to the equity capital markets
in view of the depressed stock prices relative to
book value. However, these banks have a num
ber of ways to improve their capital ratios—
including slowing down their rate of growth. This
deceleration not only would improve capital ra
tios but also would tend to dissuade banks from
extending credit to more marginal borrowers at
questionable spreads. I might also add that a
deceleration in asset expansion by the large
banks would be consistent with the national goal
of getting our inflation under control.
Th r if t I n d u s t r y P r o b l e m s
Your letter of invitation also requested informa
tion on the problems currently faced by thrift
institutions. The Federal Reserve’s primary su
pervisory responsibility, of course, is with com
mercial banks, and I am sure that the other
regulators here today will provide much informa
tion on the current and prospective state of the
thrift institutions. I would note only that the high
level of interest rates induced by inflation in
combination with large amounts of low-rate,
long-term assets on the books of many of these
institutions has brought deteriorating earnings
for thrift institutions in 1980 and so far in 1981.
As market interest rates have risen, virtually all
of the deposit growth at these institutions has
been in the form of instruments whose rates are
tied to market rates. Deposit costs have conse
quently risen sharply, leading first to reduced
earnings and, most recently, to outright operat
ing losses for a good many institutions. In the
meantime, thrift institutions, in the aggregate,
have maintained relatively strong liquid asset
holdings, in part to minimize operating losses
given downward sloping yield curves, and in
particular to bolster liquidity in the event that
deposit outflows were to occur.
Thus, although deposit inflows to the thrift
institutions have slowed in recent months, the
basic problem facing the industry is still earnings
rather than liquidity. This earnings pressure pri
marily reflects the mismatch in the asset liability
structure of thrift institutions, and the pressure
will be lessened only by slowing inflation or by a
basic restructuring of thrift institution asset port
folios, both of which will take some time. The
Federal Reserve, the other regulatory agencies,
and the administration have been discussing
ways of dealing with any particular problems that
may arise during the period ahead, including
legislative changes that may be necessary to
assure that the appropriate regulatory agencies
have fully adequate power.
Th e P r o b l e m
of
B a n k in g R e g u l a t io n
A general perception exists, which I share to a
considerable degree, that the regulation of finan
cial institutions has become too pervasive and
Statem ents to Congress
that the cumulative effect of the numerous spe
cific laws and regulations—each well intentioned—has become so burdensome as to raise
questions as to whether the effects on competi
tion and efficiency are not counterproductive.
Some danger exists that worst-case effects may
be cited from time to time as justification for
elimination of regulation that truly fulfills a legiti
mate purpose. Nevertheless, I am concerned
that we may have gone too far in certain areas,
and have not adequately focused on the full
extent of the government regulations that apply
to an individual institution. We also may need to
appraise realistically the new competitive forces
arising in the marketplace and consider whether
some of the historic restrictions on banking ac
tivity are still justified.
Even a small bank, for example, is covered not
only by rules of the banking agencies, but it
would also be subject to regulations issued by the
Treasury Department, the Labor Department,
the Department of Housing and Urban Develop
ment, the Department of Health and Human
Services, the Securities and Exchange Commis
sion, and at least 10 other federal agencies. It
may also be subject to various state and local
ordinances.
Of course, the bank is only theoretically sub
ject to some of these rules because it may not be
engaging in all the particular practices that they
address. But even if a particular rule has little
relevance to the bank’s operations, someone
must determine this and in some cases must
monitor the bank to insure that some change in
its operations does not subject it to the rule.
Even if the bank’s operations do not change, the
federal rules are very likely to. Most federal
regulations are amended from time to time—and
some quite often. By our count, a small national
bank received more than 100 pieces of proposed
or final regulatory material last year from the
banking agencies alone. In summary, we have
probably placed burdens on some institutions—
particularly small ones—that they cannot ade
quately shoulder.
The regulatory problem probably begins with
our fundamental approach to new rules. In gen
eral, we tend to focus on each one in isolation.
When new laws are considered, the burden of
each statute is evaluated—often quite thorough
ly, but nearly always separately rather than in
421
the total context of existing government require
ments. Each of these laws, taken on its own, has
seemed reasonable, responsive to a general prob
lem, and not overly costly. But the effects have
been cumulative, and adding one seemingly man
ageable burden on top of another has created a
regulatory burden that may, in the aggregate, not
be manageable, particularly for smaller and me
dium-sized institutions.
The problem is the same one that for years
plagued the budget process when each appropri
ation was considered separately. In calling for
individual appropriations of business resources
to government regulations, we have not been
mindful enough of the limits on the total available
resource budget. In the future, we will need to
make sure that we examine new proposals in the
total context of the aggregate regulatory burden
now being carried—and we must be certain that
in attacking one admitted problem, or in re
sponding to the concerns of one constituency,
we are not imposing across-the-board burdens at
a cost that outweighs the benefits of the rule.
P o s s ib l e N e w A p p r o a c h e s
We will also need to search more diligently for
new ideas for the administration of regulations
and be prepared to rely on alternatives—most
fundamentally the competition that often can
provide the needed discipline now provided by
government rules. Without necessarily endorsing
them, let me mention a few ideas that the com
mittee might wish to explore as a legislative
response to the problem.
The fact that no orderly process exists to
review and evaluate periodically the current
body of banking law surely contributes to the
regulatory problem. One possible approach
would be to set a firm schedule for reviewing—
statute by statute—the entire body of banking
law. Specific expiration dates might even be
attached to some, but certainly not all, provi
sions. Although the Board has serious reserva
tions about any across-the-board sunset provi
sions that would create uncertainty in the
implementation of monetary policy, oversight of
the Federal Reserve Banks, or supervision of
member banks or bank holding companies, even
422
Federal Reserve Bulletin □ May 1981
these laws could benefit from reexamination
according to a set schedule.
The designated review might be coupled with
the call for a regulatory impact study before the
review date—a time, in fact, more appropriate
than the current timing of such studies, which is
generally before enactment of the implementing
regulation and therefore usually before the avail
ability of any real data on operational costs.
Another technique that might be considered
would be to have the Congress attach a specific
authorization to certain provisions of law giving
the rulewriting agency the power to suspend the
provision on an experimental basis. The agency
could act if it believed that the congressional
purpose behind the statute was likely to be
generally met without continuing a particular
government requirement. Such an authorization
might be attached to existing legislation when the
Congress thought that it would be premature,
and perhaps unwise, to totally repeal legislation
but when there were some doubts about its
necessity. Acting under such authority, the agen
cy might suspend particular provisions long
enough to see whether the “right” behavior
would continue without the cost and rigidity of
the governmental mandate. Should this not be
the case, the provision could then be reimposed.
Since the burden of regulation falls most heavily
on small institutions, special attention needs to be
given to this area. The Congress probably should
consider authorizing special treatment—or even
exemptions—more frequently for small institutions
in connection with new legislation. Existing stat
utes should also be reviewed to explore the possi
bility of adding such provisions. Not all legislation,
by any means, will lend itself to such an approach,
but certainly there are possibilities. We have iden
tified one with regard to the Monetary Control
Act—a small-institution exemption. We previously
have suggested to this committee that a smallbusiness exemption be provided in the Home
Mortgage Disclosure Act by refocusing the current
$10 million exemption from a total asset test to a
m ortgage portfolio test (coupled with provisions
to require reporting by large institutions—say,
more than $100 million in assets—regardless of the
size of the portfolio).
Finally, one of the continuing problems—par
ticularly in consumer legislation—is the overlap
of state and federal law that covers the same
subject. The Board is well aware that a bolder
approach to federal preemption in the consumer
credit field runs counter to some of the current
sentiment for less federal involvement in local
matters. One response, of course, would be for
federal authorities to refrain from legislating in
certain areas, or to withdraw from some areas in
which it has legislated, leaving consumer regula
tion solely to the states. The defect in this
approach is the damage it would do to the
nationwide comparability of credit terms, and
the increased compliance burdens this might
place, in some cases, on interstate business.
While the issue is certainly a complex one, and
would require careful study, the Board believes
that it may be time to consider a more sweeping
preemption of state consumer laws in the areas in
which the Congress has chosen to regulate.
Any rethinking of the proper approach to
regulation must take account of the increased
competition we now see developing among
banks, between banks and other financial institu
tions, and between banks and nonbanks that are
offering expanded financial services. The Depos
itory Institutions Deregulation and Monetary
Control Act has radically changed the possibility
for “regulation” through the pressures of a com
petitive marketplace rather than government ac
tion. It allows both banks and thrift institutions
to offer checkable interest-bearing accounts to
consumers; it broadens the range of permissible
lending activities for thrift institutions; and it
provides for the dismantling of interest-rate ceil
ings. It has increased the number of institutions
offering bank-like services to consumers from
about 14,000 to about 40,000. In doing so it has
raised new questions about whether all the his
toric limits on branching by banks and thrift
institutions, the chartering of new depository
institutions, and mergers and acquisitions are
appropriate, and whether they too should be
reexamined with an eye to further intensifying
the competitive environment.
Competition to attract deposits, to make loans,
and to provide other financial products will en
courage the provision of services and informa
tion that many bank customers need and are
willing to pay for. Competition will not insure
perfect results, as measured relative to some
ideal, but neither does regulation. Competition
itself may offer results that are acceptable when
Statem ents to Congress
measured against the cost and imperfect success
of government-regulated behavior, particularly
when the benefits from freedom-induced innova
tion over time are taken into account. If enough
customers of all types are willing to pay for a
service or disclosure, some institution will prob
ably try to enhance its competitive position by
offering such a service. This has been the case,
for example, with the provision of credit docu
ments in “plain English,” which in several local
ities preceded the mandatory introduction of the
requirement.
Th e P r o p e r R o l e
of
R e g u l a t io n
Although we have reached a point where we
must be rigorous in examining the need for all the
various regulations—and must explore the possi
bility of less costly alternatives—we must not
lose sight of the important objectives that
prompted many of the rules under which finan
cial institutions operate. Many regulations serve
legitimate—even vital—functions that the Con
gress has decided could not be served in any
other way. These laws and regulations create
rights and provide protections that we cannot
otherwise be assured of having. Our banking
regulations, like all regulations, set a minimum
standard of conduct that we expect of our depos
itory institutions. It may be that good business
practice, or a sense of fairness, would induce the
same behavior on the part of the vast majority of
institutions without the burdensome costs of
some of these rules. Much of the debate about
deregulation will undoubtedly be spent speculat
ing about whether government rules are truly
needed. But none of us can say for sure that
“fairness” or “ common sense” or “good busi
ness”—or even more vigorous competition—will
give us the benefits that regulation, for all its
burdens, now insures for us. There is no question
that financial institutions are carrying a heavy
load of regulations, but we must not be too quick
to assume that because the burden at times is
heavy, all of it is necessarily uncalled for.
Banking has been a highly regulated industry
because of the unique role banks play in the
economy. The structure of that regulation has
been evolving for more than 100 years. Because
they have been directed to quite different objec
423
tives, the statutory and regulatory constraints
have taken a variety of forms. They can be
broken down roughly into four categories.
First are the limits on market entry, and prod
uct and geographic diversification, which have
long been a part of the banking landscape. These
restrictions were designed to implement the his
toric separation of banking and commerce (and
of banking and investment banking), which has
been the cornerstone of our approach to banking
in this country. In addition, these restrictions
have sought to protect local markets and local
institutions from competition, which was per
ceived to be adverse; they are found in the
National Bank, Glass-Steagall, and Bank Hold
ing Company Acts—most recently in the Interna
tional Banking Act—and in other bedrock pieces
of banking legislation. Regulation Q restraints,
which were extended to protect thrift institutions
and to promote the flow of funds to housing at
low rates in the mid-1960s, might also be consid
ered to be in this category. The Depository
Institutions Deregulation Act has, of course, set
in motion a gradual phaseout of this last deposit
regulation.
Although the Board does not foresee any need
to question the underlying premise that banking
and true commerce should be separated, certain
events—like the phenomenal growth of money
market funds and the recent large, hybrid finan
cial marriages—compel a reexamination of some
of our traditional notions of what constraints
should be placed on the banking industry’s abili
ty to offer a broad array of financial services. In
addition, it is time to give serious consideration
to whether all the geographic restrictions on the
banking industry, which were enacted in a far
different economic environment, are still suitable
today—particularly given the nationwide pres
ence of some nonbank competitors.
The second general category of banking regu
lation might be termed the “prudential” regula
tions. These laws are designed to insure the
safety and soundness of financial institutions.
They include many of the restrictions found in
the National Bank Act, the Federal Reserve Act,
and the Federal Deposit Insurance Act. The
provisions in the Financial Institutions Regula
tory and Interest Rate Control Act (FIRA) deal
ing with such matters as insider loans, over
drafts, and the misuse of correspondent
424
Federal Reserve Bulletin □ May 1981
relationships also fall within this category. In
general, we do not foresee the need for a major
overhaul of the safety and soundness require
ments, although we have identified some of the
more technical changes that could improve some
titles of FIRA.
The third category of regulation includes the
legislation imposing reserve requirements and
related restrictions to facilitate the conduct of
monetary policy. Our most recent embodiment
of this is, of course, the Monetary Control Act,
which has considerably expanded the relation
ship between the Federal Reserve and the na
tion’s financial institutions. In the rapidly chang
ing environment we are in, we will need to
observe developments very closely to determine
if any changes should be made to this legislation,
other than possibly an exemption of small institu
tions from reserve requirements.
Fourth is the large body of consumer protec
tion legislation of the past decade, which was
passed to insure important consumer rights and
to deal with the perceived inequities in the provi
sion of financial services to women, minorities,
and low- and moderate-income individuals. We
have recently concluded a major revision of the
Truth in Lending regulations, pursuant to the
Truth in Lending Simplification and Reform Act,
which we believe will improve substantially one
of the major categories of consumer regulations.
Some other possibilities for change may also be
worth exploring—for example, in the Electronic
Fund Transfer Act.
This has been, of course, the briefest over
view. All of the possible changes I have touched
on would need to be examined in some detail,
and we would, of course, be pleased to partici
pate in that effort. In the appendix we have
focused more specifically on our experience with
recent legislation. In some cases, we have made
specific suggestions for improvement. We would
welcome the committee’s guidance on its prior
ities for legislative review, and I can assure you
of our full cooperation in that process.
□
Statem ent by N ancy H. Teeters, Member, Board
o f Governors o f the Federal R eserve System ,
before the Subcom m ittee on Economic Stabiliza
tion o f the Com mittee on Banking, Finance and
Urban Affairs, U.S. H ouse o f Representatives,
April 30, 1981.
attracted less public attention. Two basic rea
sons for this lack of attention exist, I believe.
First, the economic impacts of federal credit
programs are not generally well understood. Sec
ond, even though a credit control system and a
credit budget are now published in the budget
documents and reviewed by the Congress, they
still receive relatively little publicity compared
with that given to unified budget outlays. As a
result, the public is not so acutely aware of the
recent rapid growth of such programs.
It is a pleasure to be here to present the Federal
Reserve Board’s view on the budgeting and
control of federally assisted credit. This is a
particularly propitious time to consider such
programs. Given the serious inflation problem
currently plaguing our nation, it is imperative
that growth in money and credit be held to a
moderate pace. And thus, within this context,
every effort must be made to insure that federal
credit as well as federal spending is carefully
evaluated and appropriately constrained in order
to avoid creating serious dislocations in financial
markets.
Wide public recognition now exists of the need
to impose effective discipline over the budget.
This is reflected in the strong support that has
been given to the President’s proposed spending
cuts. The need to impose tighter controls on
federal credit programs, on the other hand, has
Gr o w t h o f
F e d e r a l C r e d it P r o g r a m s
As you know, Mr. Chairman, federal credit
programs have expanded enormously, both in
amount and in scope in recent years. Direct loans
and loan guarantees outstanding, for example,
are projected to total more than $540 billion in
the fiscal year ending this September. This
amount is nearly triple the $190 billion level
reached just 10 years ago. In addition, loans held
by government-sponsored agencies now are pro
jected to run about $170 billion at the end of
Statem ents to Congress
fiscal year 1981, up $20 billion from last year and
more than four times the level of 10 years earlier.
Federal credit activities, moreover, are projected
to continue growing rapidly in the years ahead.
The January budget projected that net credit
advanced under federal auspices—direct, guar
anteed, and sponsored—would total more than
$100 billion during fiscal year 1982. The new
administration has announced its intention to
reduce this growth. Even so, if total credit flows
in the coming years were to roughly match those
of the past year, funds obtained under federal
credit assistance will account for more than onefourth of the total net funds raised by nonfinan
cial borrowers.
The widening range of economic activities
assisted by federal programs is also noteworthy.
In the late 1950s, the home mortgage guarantee
programs of the Federal Housing Administration
(FHA) and the Veterans Administration (VA)
accounted for 90 percent of the total volume
outstanding of guaranteed and insured loans.
This proportion has since trended down and is
expected to reach about 73 percent at the end of
the fiscal year, mainly because of an expansion
of loan guarantees into new areas—such as mili
tary sales and student loans.
The provision of federal credit assistance
through direct loans and loan guarantees to
achieve particular social and economic objec
tives has been widely recognized as a legitimate
and valuable activity. Many credit programs
originally were established to correct imperfec
tions in capital markets that denied credit to
some groups or made its cost prohibitive. For
example, the FHA-insured loan programs were
devised during the Great Depression to reduce
the risks perceived by lenders. By pooling risks
across a large number of loans issued in a stan
dard fashion, the government program encour
aged private lenders to advance credit at a lower
cost to borrowers and on less restrictive terms
than would otherwise have been possible. Over
time, these more liberal terms gained general
acceptance among all types of private lenders.
Many other federal credit assistance programs
have been introduced over subsequent years to
foster social objectives. Increasingly, these pro
grams have involved substantial interest subsi
dies. According to estimates by the Office of
Management and Budget, the present value of
425
the interest subsidy on new direct loan obliga
tions and commitments to guarantee loans in the
current fiscal year will amount to almost $27
billion. In contrast to the home mortgage area,
moreover, the default rate in some of these
programs—such as student loans and assistance
for low-income housing—has been comparative
ly high. Thus, the government has had to absorb
sizable default losses in addition to providing a
very large interest rate subsidy to borrowers. In
the past few years, the federal government has
also guaranteed sizable loans—that carry a large
potential for default—to corporate and municipal
borrowers.
Im p a c t s o f
F e d e r a l C r e d it P r o g r a m s
Since the general purpose of federal credit pro
grams, obviously, is to enable individual borrow
ers or groups of borrowers to obtain credit that
would otherwise be unavailable to them or only
available at a higher cost, it follows that these
programs will generally tend to increase credit
use by program beneficiaries and to reduce the
availability of credit to others. The extent to
which “crowding out” takes place, however,
depends importantly on the state of conditions in
the economy and financial markets. During re
cessionary periods when credit supplies are
readily available, credit assistance may work
mainly to enable borrowers to obtain additional
funds that can be used to increase demands for
goods or services.
Thus, in these periods the net result of such
programs may, to a great extent, promote a more
intense use of resources and an expansion in
economic activity rather than a transfer of credit
(and resulting effective demand) from one bor
rower to another. In times when less slack exists
in resource utilization and credit market condi
tions are relatively tight, however, a much great
er tendency exists for credit extended under
federal auspices to channel loanable funds, and
therefore command over real resources, toward
assisted borrowers and away from others. In
other words, just as private borrowers can, at
times, be crowded out of credit markets when
federal outlays are financed through the issuance
of Treasury debt, so can they when selected
426
Federal Reserve Bulletin □ May 1981
borrowers obtain loans with the assistance of the
federal government.
That last comparison is worth further consid
eration because it demonstrates that federal
credit assistance, in some cases, serves as a
close substitute for debt-financed federal spend
ing. Consider, for example, a situation in which
the Congress was contemplating expanding the
program in which the federal government guar
antees debt issued by state and local authorities
who then use the proceeds to provide low-cost
housing to the poor. Many of the end results of
such an expansion would be quite similar to
those that would be observed if the federal
government were, alternatively, to increase its
direct spending to undertake the construction of
the rental units and were then to rent space on a
subsidized basis. Note that under either ap
proach construction funds would be provided by
private investors either through the acquisition
of federally guaranteed securities or by acquiring
more Treasury securities than otherwise; the
same essential type and volume of productive
resources would be used to construct the rental
units; and low-income families would be provid
ed with better housing than they are otherwise
able to obtain. While stressing basic similarities,
however, I should also note some important
differences. The most important is that loans
must be paid back. In addition, responsibility for
construction of the rental units and for the subse
quent supervision of their operation is vested
with state and local governments under the credit
programs and thus important advantages, gained
by familiarity with local conditions, are probably
obtained. On the other hand, interest paid on the
debt instruments issued by states and localities
under the program is not subject to federal tax as
it would be on a direct debt issue of the federal
government, so that net tax revenues are re
duced.
Of course, other credit programs have much
less similarity to noncredit federal spending. For
example, homebuyers who take out mortgages
under federal guarantees could, in most in
stances, obtain private credit without the guaran
tee, albeit at a slightly higher rate. Providing
roughly equivalent assistance through direct fed
eral spending in this case would require the
federal government to give homebuyers only a
modest interest subsidy. The small size of this
subsidy indicates that net demands on real re
sources and credit markets are relatively little
affected by the guarantee program. Many cases
obviously fall somewhere between these two
extremes. Compare the effects of direct federal
loans and outright grants-in-aid. In both cases
beneficiaries gain immediate command over
goods and services. But the major difference
between the two approaches—that in the case of
the loan the government obtains a claim on the
beneficiary while it does not with the grant—is
an important distinction. It is, of course, a dis
tinction without substance in those cases when
the borrower defaults.
In general, those credit programs that, when
carefully analyzed, have characteristics most
closely analogous with those produced by federal
outlays will also tend to have similar impacts on
total spending in the economy and on credit
market pressures in the short run. The closeness
of the analogy, moreover, appears to depend less
on whether the aid in question is provided
through direct loans or loan guarantees than on
such things as creditworthiness of beneficiaries,
the size and riskiness of the undertaking, and the
relative ability of the beneficiaries to tap private
credit sources on their own.
Nevertheless, it should be clear that all credit
programs, to a greater or lesser degree, have the
potential to affect the size and composition of
demands for goods and services in the economy,
to realign the flow of credit funds in the econo
my, and to add to strains on credit markets.
Accordingly, these programs should be given the
same careful attention that the Congress devotes
to on-budget federal spending.
B udgetary C ontrol
o f F e d e r a l C r e d it A c t iv it ie s
As you know, Mr. Chairman, congressional re
view and control of federal credit activities have
been evolving over time. The utilization of the
“unified budget” concept, beginning with the
1969 budget, is one notable watershed. At that
time, the government adopted for control pur
poses a budget framework that was, in most
respects, a cash accounting system. In making
this choice, it decided (after considerable debate)
to include the net outlays of all direct lending
Statem ents to Congress
programs on the budget. This new approach,
however, was uncomfortably silent on how fed
eral loan guarantees were to be treated. In the
early 1970s, moreover, there was some backslid
ing from the comprehensive coverage of the
unified budget, as a number of agencies were
removed from the budget and newly established
agencies were accorded off-budget status.
In 1974, largely because of the trend to move
agencies off the budget, the Federal Financing
Bank (FFB) was established to help rationalize
the procedures used by federal agencies in rais
ing funds to finance their activities. Before this
innovation, various agencies of the federal gov
ernment had been issuing their own securities.
This activity created problems for the Treasury
in monitoring and controlling the timing of feder
al borrowing and tended at times to generate
congestion in the market for federally related
securities. Moreover, the multiplicity of agency
issues created problems for the investing public
in interpreting the status and creditworthiness of
the various securities. These problems thus tend
ed to raise interest costs for borrowing agencies
and possibly also for the Treasury.
The advantage gained through creation of the
FFB, however, had an unfortunate side effect.
Since the FFB’s activities have been off-budget
from the outset, its acquisition of loans is not
reflected on the budget. Accordingly, the budget
ary scrutiny intended to apply to direct loan
programs as a result of the comprehensive cover
age of the unified budget tended to be eroded.
Furthermore, agencies that made direct, on-bud
get loans to the public were able to sell these
loans to the FFB and thereby were able to extend
new loans without constraint.
In the past five years, a number of important
steps have been taken to make coverage of the
unified budget more comprehensive and to im
prove controls of credit programs. Some agen
cies previously removed from the budget have
been returned. And payments to some off-budget
federal enterprises (for example, the U.S. Rail
way Association and the Synthetic Fuels Corpo
ration) have been reflected in the unified budget.
In addition to these incremental improvements
in budget coverage, major strides have also been
taken in the development of a separate credit
budget process to parallel the unified budget. In
the past two years, totals have been calculated
427
and presented in the budget for gross new direct
loan obligations and new loan guarantee commit
ments. Also components of the credit budget
total have been shown in respective budget func
tions and have been subdivided by agency and
program in the special analysis accompanying
the budget and in the budget appendix. One
result of this innovation is that loan guarantee
programs, even though they involve no immedi
ate direct cash outlays, are now given much
more detailed attention, and all direct loan pro
grams are more carefully reviewed regardless of
on-budget or off-budget status. Also, the outlays
of the FFB (direct loans and loan-asset pur
chases) are now attributed to the originating
agency, which in my view eliminates the tenden
cy for the operation of the agency to obscure the
nature of credit programs.
Moreover, the Congress, in addition to focus
ing on net changes in federally assisted credit,
now gives much greater attention to the gross
volume of new loan extensions and guarantee
commitments, and this gives a clearer picture of
the magnitude of these programs. A final impor
tant step taken by the Congress last year was to
have the budget resolutions include target ceil
ings for total new obligations and total new
guarantee commitments and to distribute these
totals by budget function.
Both the past and the current administrations
have also proposed that a substantial proportion
of the credit budget totals be made subject to
annual appropriations limitations. The January
budget proposed that 63.8 percent of the credit
budget for fiscal year 1982 be so limited. Those
programs exempted are limited to the following:
unambiguous entitlements that cannot be effec
tively limited by appropriations; programs that
provide for unforeseeable contingencies, such as
deposit insurance; guarantees of certificates of
beneficial ownership that are sold by the Farm
ers Home Administration and Rural Electrifica
tion Administration; and a catchall of programs,
such as export promotion loans by the Commod
ity Credit Corporation, that the last administra
tion believed inappropriate for curtailment due to
economic circumstances. That final area of ex
emption, in particular, deserves careful evalua
tion by the Congress.
Broadening the coverage of the unified budget
and the formulation of a separate but parallel
428
Federal Reserve Bulletin □ May 1981
credit budget set the stage for a number of
further steps in implementing an effective proc
ess to bring credit programs under systematic
review and control. As you noted in your letter
to me, Mr. Chairman, legislation has been pro
posed by Congressmen Mineta and Bethune to
formalize the credit budget process implemented
on an experimental basis last year. This bill
would amend the Budget Act to apply to the
credit budget the same enforcement procedures
and legislative timetables that apply to the rest of
the budget. The Board of Governors, in general,
enthusiastically endorses the establishment of
these formal procedures. The Board’s view,
however, is that the section of this bill pertaining
to appropriations limitations should be modified.
Limitations are, of course, central to the budget
ary control process proposed by the previous
administration and endorsed by the present ad
ministration. However, exemption of at least
some emergency assistance and entitlement pro
grams appears warranted, and the Board sug
gests that all such programs continue to be
exempted from appropriations limitations at least
until more experience is gained with the new
budget process.
O ther Issu e s
While much progress has been made recently in
developing effective procedures for review and
control of federally assisted credit, many issues
remain. Although the magnitude of all credit
activities should be made explicit in the credit
budget, the issue remains as to whether or to
what extent these activities should also be re
flected in the unified budget. As discussed earli
er, some direct loans have characteristics similar
to government purchases and, accordingly,
might logically be included in the unified budget.
Also, some loans for which repayment is far from
certain, such as for foreign security assistance,
might be treated as direct grants.
Because all direct loans involve an outlay of
cash, it could be argued that they should be
placed uniformly on the unified budget. For
many programs, however, such as those that
channel funds to students, veterans, and hous
ing, an estimate of the implicit and explicit
interest subsidy provided by the program might
serve better in the unified budget. If most loan
programs are of this latter type, placing all direct
loan programs only in the separate credit budget
might be preferable. I have no fixed view on this
question. I do feel strongly, however, that as a
practical matter the current haphazard treatment
of direct loans, with some reflected on the uni
fied budget and others not, should be ended.
Either all direct loans of federal agencies should
be included in the unified budget or none should
be so included. In the latter case a comprehen
sive and enforceable credit budget would be even
more important.
The same set of considerations also applies to
federal loan guarantees. Many of these programs
are not operated on an actuarially sound basis
and involve an element of subsidy (because the
premiums charged by the government for insur
ing the loans are set below the levels required to
cover operating costs and expected losses).
Moreover, some guarantee programs charge no
insurance premiums at all. For all of these pro
grams, it would be appropriate to include an
estimate of the potential subsidy or expected
future outlay in the unified budget. In the case of
other programs, however, which are run on an
actuarially sound basis, such as FHA insurance
or VA loan guarantees, no entry at all need be
made on the unified budget. The appropriate
classification of guarantee programs needs to be
carefully studied and resolved.
With regard to your proposal to put the Feder
al Financing Bank on the budget, Mr. Chairman,
the Board does not see any compelling argu
ments for such treatment. In essence, the func
tion of the FFB is to serve as an intermediary to
assist other credit programs that are responsible
for effects on the economy. Resolution of the
other on-budget-off-budget issues that I have
just discussed and a tight credit budget proce
dure should achieve many of the objectives that I
expect you intended to accomplish. The Board’s
view is further based on the recognition that
current budget procedures require that all loans
acquired by the bank be attributed back to the
agency originating the transaction and the suppo
sition that these procedures will be continued.
Since these procedures eliminate the problem of
not giving proper accountability to federal credit
programs, leaving the FFB itself off the budget
seems appropriate.
Statem ents to Congress
Another thorny issue related to budgetary con
trol of federal credit programs is the treatment of
transactions that have substantial credit ele
ments such as lease or price guarantees. Price
guarantees, for example, involve a contingent
liability on the part of the federal government
and very likely affect the terms on which a
private beneficiary can obtain credit. Thus, they
are very similar to loan guarantees, and further
analysis should be directed to the subject of their
treatment in regard to the credit budget.
Further work also needs to be done to deter
mine the best approach for achieving certain
desired objectives. That is, whether direct
spending (grants) or direct loans, or loan guaran
tees or beneficial tax treatment (tax expendi
tures), can most effectively achieve a particular
program objective. The congressional budget
process that has been developing since the Bud
get Act of 1974 and that is now being augmented
by the credit budget has the great advantage of
distributing by budget function all of these types
of federal activities. Thus, this type of compari
son is encouraged and it should be actively
pursued.
In addition, two other lines of inquiry seem
important. First, by how much does the en
hanced availability of credit and the implicit or
explicit subsidy associated with a given credit
program actually increase private sector spend
ing? Analyses of this question have been under
taken in some areas but not in others, and little
comprehensive literature and professional con
sensus on these issues are available. Putting
precise quantitative dimensions on these effects
may not be possible, but comparison of the
429
impact of federal credit activities with income
maintenance and other “transfer payments” or
with federal purchases depends on answers to
this question.
Finally, a complex question remains concern
ing the extent to which funds raised by the
federal government and lent directly by the gov
ernment to the private sector or funds raised
directly by the private sector under the auspices
of federal guarantees reduce the credit that can
be obtained by other borrowers. The answer to
this question is important for assessing such
allocational issues as whether, for example, fed
eral credit programs supporting housing or agri
culture reduce the availability of credit for busi
ness capital investment. And ultimately, the
effect of federal credit programs, in the aggre
gate, on total spending in the economy depends
on the answer.
When I appeared before the Senate Committee
on Banking, Housing, and Urban Affairs a little
over two years ago, I concluded my remarks by
calling for the establishment of a new budget
commission that would be charged with the
responsibility of carefully analyzing and, it is
hoped, effectively resolving all of the unan
swered questions pertaining to proper account
ing and control of federal credit programs. In my
view the passage of time has not reduced the
advisability of establishing such a commission.
Fully unambiguous answers to some of these
questions may not be possible, but a systematic
analysis would clarify many confusions and
would provide some guidance on reasonable
courses to pursue in dealing with credit pro
grams.
□
430
Announcements
Ch an ge
in
D is c o u n t R a t e
The Federal Reserve Board announced, effective
May 5, 1981, an increase in the basic discount
rate from 13 percent to 14 percent and raised the
surcharge that applies to large, frequent borrow
ers from 3 to 4 percentage points.
These actions were taken in light of the current
levels in short-term market interest rates and the
need to maintain restraint in the monetary and
credit aggregates.
In approving the increases, the Board acted on
requests from the directors of the Federal Re
serve Banks of Boston, New York, Philadelphia,
Cleveland, Richmond, Atlanta, St. Louis, Min
neapolis, Kansas City, Dallas, and San Francis
co, and effective May 8, 1981, Chicago. The
discount rate is the interest rate that is charged
for borrowings from the district Federal Reserve
Banks. The surcharge applies only to borrowings
for short-term adjustment credit by institutions
with deposits of $500 million or more. It is
charged when discount borrowing occurs in two
or more successive weeks in a calendar quarter
or when borrowing takes place in more than four
weeks in a calendar quarter.
R e g u l a t io n D : A
m endment
The Federal Reserve Board has amended its
Regulation D (Reserve Requirements of Deposi
tory Institutions) to exempt from reserve re
quirements certain kinds of time deposits repre
senting funds of deferred compensation plans,
effective April 30, 1981. Deferred compensation
plans allow delayed receipt of presently earned
income to a future time, and thus the Board’s
action is expected to result in more even applica
tion of reserve requirements to time deposits
representing retirement income.
The exemption is for nontransferable time
deposits held by an employer as part of an
unfunded deferred compensation plan estab
lished in conformity with subtitle D of the Inter
nal Revenue Act of 1978. Under the Board’s
ruling, such time deposits will be regarded as
personal time deposits and consequently will be
free of reserve requirements. Previously, time
deposits representing unfunded deferred com
pensation plans had been regarded as nonperson
al time deposits subject to reserve requirements.
An unfunded deferred compensation plan is one
in which the deposits are held by the employer
rather than being placed in a trust or being
similarly “funded.”
D eferral
of
R e s e r v e R e q u ir e m e n t s
The Federal Reserve Board has extended for six
months the deferral of reserve requirements for
nonmember depository institutions with total de
posits of less than $2 million.
The Monetary Control Act of 1980 made cer
tain deposits of nonmember as well as member
depository institutions subject to federal reserve
requirements. To lessen the burden for very
small institutions and in view of operational
considerations, the Board deferred until May
1981, and now until November 1981, reserve
requirements for institutions with less than $2
million total deposits, as of December 31, 1979.
The Board extended the deferral period to pro
vide the Reserve Banks with additional time for
implementation of the Monetary Control Act.
Institutions now deferred whose deposits grew
by the end of 1980 to $15 million or more must
begin to report deposits for the seven-day re
serve computation period beginning May 21,
1981, and maintain reserves during the seven-day
period beginning June 4, 1981.
The deferral affects nearly 18,000 depository
institutions, including about 17,000 credit
unions. These institutions are estimated to hold
Vi to 1 percent of all deposits. Those offering
transaction accounts or nonpersonal time depos
its are subject to reserve requirements.
431
The Board indicated that it likely will seek, in
the near future, authorization from the Congress
to establish a permanent exemption from reserve
requirements for smaller depository institutions.
Proposed A
c t io n s
The Federal Reserve Board has proposed an
interpretation of its rules to clarify which deposi
tors are eligible to hold interest-bearing checking
accounts at member banks. The Board asked for
comment by June 15, 1981.
The Federal Reserve Board has proposed four
amendments of its Regulation J (Collection of
Checks and Other Items and Transfers of Funds)
to implement portions of the Monetary Con
trol Act of 1980 and to make certain techni
cal changes. The Board requested comment by
June 19, 1981.
Q u arterly R elease
F in a n c e
on
A
g r ic u l t u r a l
The Agricultural Finance D atabook—Quarterly
Series is now available for general distribution.
Designated statistical release E.15 (125), it will
be dated January, April, July, and October, and
issued in the following month. The D atabook
presents national data on outstanding farm debt;
the farm lending operations and experience of
the production credit associations, federal land
banks, and life insurance companies; interest
rates and other terms of bank lending to farmers;
and farm income and expenses. In addition, it
includes data from the regional quarterly surveys
of agricultural credit conditions made by the
Federal Reserve Banks of Richmond, Chicago,
Minneapolis, Kansas City, and Dallas.
The D atabook is designed to facilitate analysis
of current developments in agricultural finance.
Historical data are provided for up to 20 years, if
available, permitting ready comparison of cur
rent cyclical or other developments with those of
past periods. Numerous quarterly and annual
changes, percentage distributions, moving aver
ages, and analytical ratios are included. Some
series are also shown on a seasonally adjusted
basis.
Individuals and organizations that have al
ready been receiving the Databook, or that re
ceived the April 1981 issue, will remain on the
new distribution list. Others may obtain the April
issue or may be added to the distribution list by
contacting Publications Services, Board of Gov
ernors of the Federal Reserve System, Washing
ton, D.C. 20551.
P
S ta te m e n t o n In c o m
C r e d it L if e In s u r a n c e
o l ic y
of
e from
Sa le
The Federal Reserve Board has adopted a policy
statement generally prohibiting employees, offi
cers, directors, or others associated with a state
member bank from profiting personally from the
sale of life insurance in connection with loans
made by the bank.
The policy adopted by the Board, effective
May 1, 1981, calls for such income to be credited
to the bank, or alternatively to a bank holding
company or other affiliate of the bank so long as
the bank receives reasonable compensation for
its role in selling the insurance.
The policy permits state member banks to
allow their employees and officers to participate
in the income under a bonus or incentive plan not
to exceed more than 5 percent of the recipient’s
annual salary. The policy statement calls for
compliance within two years unless there is a
further delay for clearly demonstrated hardship.
The policy statement, which was recommend
ed to the Board and to the other federal regula
tors of financial institutions represented on the
Council by the Federal Financial Institutions
Examination Council, follows:
For the purposes of helping to preserve the safety
and soundness of financial institutions, the Board of
Governors of the Federal Reserve System establishes
the policies set forth below on the disposition of
income1from the sale of credit life, health and acci
dent, and mortgage life insurance (credit life insur
ance) related to loans made by state member banks.
1.
Individual employees, officers, directors, and
principal shareholders of a state member bank should
not personally profit by retaining commissions or
other income from the sale of credit life insurance to
the institution's loan customers. However, employees
and officers may participate in a bonus or incentive
1.
“ I n c o m e ” in c lu d e s c o m m is s io n s an d e x p e r ie n c e -r a tin g
c red its; it d o e s n o t r efer to th a t p o r tio n o f th e p rem iu m
req uired to c o v e r th e u n d e rw r itin g risk .
432
Federal Reserve Bulletin □ May 1981
plan under which payments based in whole or in part
on credit life insurance sales are made in cash or in
kind out of the state member bank’s funds in an
amount not exceeding in any one year 5 percent of the
recipient’s annual salary. Such payments may not be
made to employees and officers more often than
quarterly.
2. As an accounting and operations matter, income
derived from credit life insurance sales to loan custom
ers should be credited to the income accounts of the
state member bank and not to the state member bank’s
individual employees, officers, directors, or principal
shareholders, to their interests, or to other affiliates.
However, such income may be credited to an affiliate
operating under the Bank Holding Company Act or, in
the case of an individual shareholder, to a trust for the
benefit of all shareholders, provided that the state
member bank receives reasonable compensation in
recognition of the role played by its personnel, pre
mises, and good will in credit life insurance sales.2
3. When state insurance laws or other legal consid
erations preclude a financial institution from using a
particular procedure for selling credit life insurance or
from disposing of the income in a particular manner, a
state member bank that wishes to provide this service
to its loan customers shall seek and utilize an alterna
tive method that complies with paragraphs 1 and 2
above.
4. The proper method for the distribution to share
holders of income derived from credit life insurance is
through a declaration of dividends in conformity with
law, rule, regulation, and prudent financial practices.
5. State member banks should be in compliance
with paragraphs 1 and 2 above within two years
following publication in the Federal R egister of this
policy statement. Modifications beyond that time will
be granted only when a clear hardship exists and
satisfactory assurance is provided that compliance
with paragraphs 1 and 2 will be achieved within an
appropriate time period.
Officer of Farmers and Merchants State Bank in
Fredericksburg, Virginia, and a consultant to
financial institutions, Mr. Green holds a B.A.
from Virginia Polytechnic Institute and State
University and an M.B.A. from the University of
Richmond.
Elliott C. McEntee appointed Assistant Direc
tor. Mr. McEntee, who joined the Board’s staff
in 1973 from the Federal Reserve Bank of New
York, holds a B.S. from San Jose State College.
Lorin S. Meeder from Assistant Director to
Associate Director.
Raymond L. Teed from Assistant Director to
Associate Director.
P. Donald Ring from Assistant Director to
Adviser.
Division o f D ata P rocessing , effective April
27, 1981.
Neal H. Hillerman appointed Assistant Direc
tor. Mr. Hillerman, who joined the Board’s staff
in April 1972, holds a B.S. from the University of
Michigan, an M.S. from the University of Mary
land, and a Ph.D. from American University.
C. William Schleicher, Jr., appointed Assist
ant Director. Mr. Schleicher came to the Board
in November 1969 from the Federal Reserve
Bank of Atlanta; he holds a B.B.A. and an
M.B.A. from Ohio University and is a graduate
of the Stonier School of Banking.
Bruce M. Beardsley from Associate Director
to Deputy Director.
Uyless D. Black from Assistant Director to
Associate Director.
M o n e y S t o c k S e a s o n a l Fa c t o r s
Ch a n g e s
in
B o a r d S taff
The Board of Governors has announced the
following changes in its official staff.
Division o f Federal R eserve Bank Operations ,
effective April 15, 1981.
Richard B. Green appointed Assistant Direc
tor. Formerly the President and Chief Executive
2.
A s a g e n e ra l ru le, “ r e a s o n a b le c o m p e n s a tio n ” m e a n s
an a m o u n t e q u iv a le n t to at le a s t 2 0 p e r c e n t o f th e a ffilia te ’s
n e t in c o m e a ttrib u ta b le to th e fin a n cia l in s titu tio n ’s c r e d it life
in su r a n c e s a le s .
On May 1, 1981, the Board published updated
seasonal adjustment factors for the monetary
aggregates. It also revised seasonally adjusted
M-1B and the broader monetary aggregates to
include other checkable deposits (negotiable or
der of withdrawal and similar accounts) on a
seasonally adjusted rather than a not seasonally
adjusted basis. (A description of the revisions
appears in the Board’s monetary aggregates
press release, H.6 (508), dated May 1, 1981.)
Monthly seasonal factors for currency and for
deposit components of the monetary aggregates
Announcements
at commercial banks and thrift institutions are
shown for 1981 in an accompanying table. In
addition, weekly seasonal factors for currency
and commercial bank components are shown.
433
The revised seasonally adjusted data are avail
able on request from the Banking Section, Board
of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Money stock seasonal factors, 1981
Commercial banks
Currency
J a n ..
Feb.
Mar.
Apr.
May.
June
July.
Aug.
Sept.
O ct..
N ov.
Dec.
.9930
.9880
.9910
.9960
.9960
1.0000
1.0050
1.0020
Demand
deposit
(M l-A
component)
1.0190
.9720
.9770
1.0150
.9800
.9960
1.0040
.9910
.9990
1.0000
1.0000
1.0060
1.0060
1.0290
1.0080
1.0200
Savings and loan
associations
Credit
unions
Savings
deposits
Smalldenomination
time
deposits
Largedenom
ination
time
deposits
N et
savings
deposits
.9810
.9896
.9938
.9944
1.0048
1.0151
1.0118
1.0141
1.0135
1.0035
1.0050
1.0073
1.0088
1.0013
.9990
.9970
.9929
.9911
.9956
.9967
.9866
.9820
.9855
.9871
.9988
1.0070
1.0178
1.0218
1.0218
.9914
1.0001
Mutual savings
banks
Demand
and OCD
coming
from
demand
Savings
deposits
Smalldenomination
time
deposits
Largedenomination
time
deposits
Savings
deposits
Smalldenomination
time
deposits
1.0190
.9720
.9770
1.013b
.9780
.9980
1.0050
.9920
1.0010
1.0070
1.0070
1.0290
.9950
.9890
.9940
1.0010
.9970
1.0020
1.0090
1.0080
1.0050
1.0100
.9960
.9920
.9980
1.0060
1.0060
1.0040
1.0060
1.0050
.9990
.9950
.9940
.9970
.9930
.9940
1.0150
1.0140
1.0150
.9970
.9960
.9750
.9790
.9840
.9870
.9950
1.0150
1.0250
.9924
.9861
.9938
.9975
.9970
1.0050
1.0093
1.0090
1.0107
1.0072
.9962
.9947
1.0059
1.0078
1.0095
1.0084
1.0019
.9993
.9970
.9909
.9873
.9917
.9969
1.0014
1.0001
1.0110
.9941
.9841
.9918
.9858
.9953
.9989
.9964
1.0089
1.0133
1.0049
1.0057
1.0042
.9976
.9966
Commercial banks
Week
Currency
Demand deposit
(M l-A component)
7 ............................
1 4 ............................
2 1 ............................
2 8 ............................
Feb. 4 ..........................
1 1 ..........................
1 8 ..........................
2 5 ..........................
Mar. 4 ..........................
1 1 ..........................
1 8 ..........................
2 5 ..........................
Apr. 1 ..........................
8 ..........................
1 5 ..........................
2 2 ..........................
2 9 ..........................
May 6 ............................
13............................
20............................
27............................
June 3 ..........................
1 0 ..........................
1 7 ..........................
2 4 ..........................
July 1 ............................
8 ............................
1 5 ............................
2 2 ............................
2 9 ............................
Aug. 5 ..........................
12..........................
1 9 ..........................
2 6 ..........................
Sept. 2 ..........................
9 ..........................
16..........................
23..........................
30..........................
Oct. 7 ............................
14............................
21............................
2 8 ............................
N ov. 4 ..........................
11..........................
18..........................
2 5 ..........................
Dec. 2 ..........................
9 ..........................
1 6 ..........................
2 3 ..........................
3 0 ..........................
1.0080
.9985
.9895
.9790
.9850
.9960
.9920
.9780
.9870
.9990
.9940
.9880
.9860
1.0060
1.0040
.9930
.9830
1.0000
1.0010
.9950
.9900
.9980
1.0100
1.0020
.9960
.9940
1.0190
1.0100
1.0020
.9920
1.0040
1.0120
1.0050
.9940
.9950
1.0120
1.0010
.9950
.9870
1.0070
1.0060
.9980
.9890
.9990
1.0150
1.0090
1.0070
1.0090
1.0230
1.0190
1.0250
1.0160
1.0620
1.0400
1.0130
.9750
.9870
.9810
.9750
.9520
.9730
.9820
.9840
.9650
.9790
1.0130
1.0310
1.0280
.9940
.9920
.9830
.9790
.9620
.9880
1.0010
1.0080
.9840
.9970
1.0150
1.0190
1.0030
.9810
.9970
.9980
.9950
.9750
.9910
1.0090
1.0200
.9920
.9810
1.0160
1.0160
1.0020
.9880
1.0140
1.0130
1.0100
.9900
1.0100
1.0220
1.0310
1.0280
1.0360
Jan.
OCD. Other checkable deposits.
Demand and
OCD coming
from demand
1.0620
1.0390
1.0130
.9760
.9880
.9810
.9760
.9500
.9730
.9840
.9820
.9650
.9820
1.0130
1.0300
1.0250
.9910
.9900
.9820
.9770
.9600
.9890
1.0010
1.0090
.9860
.9970
1.0150
1.0200
1.0030
.9830
.9990
1.0000
.9950
.9750
.9920
1.0100
1.0200
.9920
.9820
1.0170
1.0180
1.0030
.9880
1.0160
1.0140
1.0110
.9890
1.0120
1.0220
1.0300
1.0290
1.0360
Savings
deposits
Smalldenomination
time deposits
Largedenomination
time deposits
.9988
.9981
.9949
.9906
.9884
.9886
.9890
.9894
.9902
.9925
.9939
.9962
1.0015
1.0089
1.0063
.9988
.9946
.9949
.9972
.9992
.9990
1.0005
1.0037
1.0033
1.0022
1.0041
1.0098
1.0107
1.0094
1.0072
1.0076
1.0082
1.0070
1.0064
1.0057
1.0071
1.0050
1.0028
1.0050
1.0137
1.0135
1.0101
1.0059
1.0007
.9973
.9945
.9949
.9956
.9971
.9951
.9877
.9876
.9971
.9967
.9980
.9990
1.0019
1.0049
1.0060
1.0057
1.0050
1.0071
1.0070
1.0055
1.0041
1.0032
1.0030
1.0047
1.0053
1.0062
1.0063
1.0057
1.0056
1.0061
1.0062
1.0056
1.0044
1.0031
1.0009
.9991
.9984
.9976
.9964
.9951
.9952
.9944
.9942
.9944
.9943
.9953
.9962
.9980
.9996
.9978
.9971
.9957
.9942
.9927
.9913
.9927
.9926
.9920
.9955
.9960
1.0134
1.0143
1.0160
1.0165
1.0140
1.0125
1.0120
1.0127
1.0161
1.0167
1.0136
1.0134
1.0099
1.0010
.9957
.9915
.9943
.9947
.9964
.9979
.9988
.9880
.9787
.9737
.9715
.9761
.9780
.9764
.9793
.9817
.9799
.9837
.9857
.9876
.9875
.9865
.9854
.9875
.9929
.9942
.9947
.9941
.9984
1.0029
1.0084
1.0147
1.0209
1.0194
1.0216
1.0236
1.0296
1.0265
434
Legal Developments
A m endm ent
to
R e g u l a t io n D
Part 204—R eserve Requirem ents o f Depository
Institutions
Dakota County Bancshares, Inc.,
Mendota Heights, Minnesota
Order Denying Formation o f a Bank Holding
Company
Time Deposits of Deferred Compensation Plans
The Board of Governors of the Federal Reserve Sys
tem has amended its Regulation D—Reserve Require
ments of Depository Institutions (12 CFR Part 204),
which imposes federal reserve requirements on depos
itory institutions that maintain transaction accounts or
nonpersonal time deposits. Under the amendment,
nontransferable time deposits representing funds of
deferred compensation plans established pursuant to
subtitle D of the Revenue Act of 1978, Pub. L. No. 95600, 92 Stat. 2763 (1978), will be regarded as personal
time deposits, and thus will not be subject to reserve
requirements.
Effective April 30, 1981, Section 204.2(f), subpara
graph (2) of Regulation D is amended to read as
follows:
Section 204.2—Definitions
^
* * *
(2) “ Nonpersonal time deposit” does not include
nontransferable time deposits to the credit of or in
which the entire beneficial interest is held by an
individual pursuant to an Individual Retirement Ac
count or Keogh (H.R. 10) Plan under 26 U.S.C.
(I.R.C. 1954) §§ 408, 401, or nontransferable time
deposits held by an employer as part of an unfunded
defered compensation plan established pursuant to
subtitle D of the Revenue Act of 1978 (Pub. L. No.
95-600, 92 Stat. 2763).
^
s}:
*
B a n k H o l d in g C o m p a n y a n d B a n k M e r g e r
O r d e r s I s s u e d b y th e B o a r d o f G o v e r n o r s
Orders Under Section 3 o f Bank Holding
Company A ct
Dakota County Bancshares, Inc., Mendota Heights,
Minnesota, has applied for the Board’s approval under
section 3(a)(1) of the Bank Holding Company Act
(12 U.S.C. § 1842(a)(1)) of formation of a bank holding
company by acquiring 100 percent of the voting shares
of Dakota County State Bank, Mendota Heights,
Minnesota (“ Bank”).
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views has expired,
and the Board has considered the application and all
comments received in light of the factors set forth in
section 3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant, a nonoperating Minnesota corporation
with no subsidiaries, was organized for the purpose of
becoming a bank holding company by acquiring Bank,
which holds deposits of $16.1 million.1 Upon acquisi
tion of Bank, Applicant would control the 197th largest
bank in Minnesota and would hold approximately 0.07
percent of the total deposits in commercial banks in
the state.
Bank is the 61st largest of 117 banking organizations
in the relevant banking market and holds approximate
ly 0.15 percent of the total deposits in commercial
banks in the market.2 One principal of Applicant and
Bank holds a small ownership interest in a one bank
holding company located in Illinois, outside Bank’s
banking market. Another principal of Applicant and
Bank holds a small ownership interest in a multibank
holding company within Bank’s market area. Howev
er, this principal’s ownership interest amounts to less
than five percent of the outstanding shares of the
multibank holding company, he holds no management
position with that company, the combined market
1. All banking data are as of December 31, 1979, unless otherwise
indicated.
2. The relevant banking market is approximated by the Minne
apolis/St. Paul RMA, adjusted to include all of Carver County, Minne
sota. Market data are as of September 30, 1979.
Legal Developm ents
share of Bank and the banks controlled by that compa
ny is relatively small, and there are a large number of
banking alternatives within the market. It appears
from these facts and other facts of record that consum
mation of the proposal would not result in any adverse
effects upon competition or increase the concentration
of banking resources in any relevant area. According
ly, the Board concludes that competitive consider
ations are consistent with approval of the application.
The Board has indicated on previous occasions that
a holding company should serve as a source of finan
cial and managerial strength to its subsidiary banks,
and that the Board would closely examine the condi
tion of an applicant in each case with this consider
ation in mind. In this case, the Board concludes that
while the managerial resources of Applicant and Bank
are generally satisfactory, the financial resources and
future prospects of Applicant warrant denial of this
application.
With regard to Applicant’s and Bank’s financial
resources and future prospects, the Board notes that
Applicant would incur a sizeable debt in connection
with this proposal. Applicant proposes to service this
debt through dividends to be declared by Bank and tax
benefits to be derived from filing consolidated tax
returns. While Bank has experienced recent improve
ments in earnings, nevertheless, in light of current
economic conditions, the amount of debt involved in
the proposal, and the Bank’s historical earnings and
growth performance, the Board believes that Appli
cant would lack sufficient flexibility to service its debt,
maintain adequate capital in Bank, and meet any
unforeseen problems that might arise at Bank. Accord
ingly, the Board concludes that considerations relating
to the financial resources and future prospects of
Applicant and Bank weigh against approval of the
application.
No significant changes in the services offered by
Bank are expected to follow from consummation of
the proposed transaction. Consequently, convenience
and needs factors are consistent with, but lend no
weight toward, approval of this application.
On the basis of the circumstances concerning this
application, the Board concludes that the banking
considerations involved in this proposal present ad
verse factors bearing upon the financial resources and
future prospects of Applicant and Bank. Such adverse
factors are not outweighed by any procompetitive
effects or by benefits to the convenience and needs of
the community. Accordingly, it is the Board’s judg
ment that approval of the application would not be in
the public interest and the application should be de
nied.
On the basis of the facts of record, the application is
denied for the reasons summarized above.
435
By order of the Board of Governors, effective
April 8, 1981.
Voting for this action: Vice Chairman Schultz and Gover
nors Wallich, Partee, Rice, and Gramley. Absent and not
voting: Chairman Volcker and Governor Teeters.
(Signed)
[s e a l]
Ja m es M c A fe e ,
A ssistant Secretary o f the Board.
El Pueblo Bancorporation
Espanola, New Mexico
Order Denying Formation o f Bank Holding Company
El Pueblo Bancorporation, Espanola, New Mexico,
has applied for the Board’s approval under section
3(a)(1) of the Bank Holding Company Act (12 U.S.C.
§ 1842(a)(1)) of formation of a bank holding company
by acquiring 80 percent or more of the voting shares of
El Pueblo State Bank (“ Bank”), Espanola, New Mex
ico.
Notice of the application, affording opportunity for
interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing comments has expired, and the Board
has considered the application and all comments re
ceived in light of the factors set forth in section 3(c) of
the Act (12 U.S.C. § 1842(c)).
Applicant is a nonoperating company organized for
the purpose of becoming a bank holding company by
acquiring Bank. Bank, the sixty-fifth largest bank in
New Mexico, has total deposits of $18.5 million,
representing approximately 0.4 percent of the total
deposits in commercial banks in the state.1Bank is the
smallest of three banking organizations in the relevant
banking market,2 and holds 25.5 percent of total
deposits in commercial banks in that market. None of
Applicant’s principals is associated with any other
banking organization, and it appears from the facts of
record that consummation of the proposal would not
have any adverse effects on existing or potential
competition, or on the concentration of banking re
sources, in any relevant area. Accordingly, the Board
concludes that competitive considerations are consist
ent with approval of the application.
The Board has indicated on previous occasions that
a holding company should serve as a source of finan
cial and managerial strength to its subsidiary bank(s),
and that the Board would closely examine the condi
1. All banking data are as of December 31, 1979.
2. The relevant banking market is approximated by Rio Arriba
County, New Mexico.
436
Federal Reserve Bulletin □ May 1981
tion of an applicant in each case with this consider
ation in mind. Comments were received noting that
approval of the application would result in benefits to
Bank and its community. While the Board recognizes
that some benefits would result from the proposal,
these benefits must be viewed in the context of other
factors, such as the level of debt to be serviced, and
reasonable projections of the capital-to-asset ratio of
Bank. In this case the Board concludes that consider
ations relating to the financial resources and future
prospects of Applicant and Bank warrant denial of the
application.
With respect to Applicant’s and Bank’s financial
considerations and future prospects, the Board notes
that although Bank’s condition is generally satisfac
tory, Applicant would incur a sizeable debt. Applicant
proposes to service the debt through dividends to be
declared by Bank and tax benefits to be derived from
filing consolidated tax returns. Applicant has also
proposed a capital injection for Bank. Although the
funds used to provide this capital injection will also be
borrowed, Applicant anticipates that this capital injec
tion and projected improvements in Bank’s condition
will allow Applicant to service all of its indebtedness
while maintaining an adequate capital level in Bank.
Thus, Applicant projects reaching a debt-to-equity
ratio of less than 30 percent within 9 years while
maintaining Bank’s capital. However, in light of the
recent performance of Bank and the historical per
formance of the banks in the area. Applicant’s earn
ings and growth projections for Bank appear to be
unrealistic. In particular, Applicant’s projections of
Bank’s earnings are overly optimistic, while its growth
projections, in light of all the facts of record including
future growth prospects of Rio Arriba County, are
low. Thus, based upon the record in this case, it is the
Board’s view that Bank is unlikely to generate suffi
cient earnings to enable Applicant to service its debt
while maintaining adequate capital in Bank, as well as
affording Applicant the flexibility to meet any unfore
seen circumstances that might arise at Bank. Accord
ingly, the Board concludes that considerations relating
to the financial resources and future prospects of
Applicant and Bank lend significant weight toward
denial of this application.
The managerial resources of Applicant and Bank are
satisfactory and consistent with, but lend no weight
toward, approval of this application. Applicant pro
poses to open a new branch office of Bank as well as
offer a number of new services if this proposal is
approved. Accordingly, factors associated with conve
nience and needs of the community to be served lend
some weight to approval of this proposal. However,
the Board does not view such considerations as being
significant when compared to the adverse financial
factors associated with this proposal, since the bene
fits associated with the new branch and new services
will be offset by the adverse financial factors men
tioned above. Indeed, the proposed new branch can
reasonably be expected to further increase Bank’s
deposit growth, thereby placing additional strain on
Bank’s capital.
On the basis of all the facts of record, the Board
concludes that the banking considerations involved in
this proposal present significant adverse factors bear
ing upon the financial resources and future prospects
of Applicant and Bank. Such adverse factors are not
outweighed by any procompetitive effects or by bene
fits that would result in better serving the convenience
and needs of the community. Accordingly, it is the
Board’s judgment that approval of the application
would not be in the public interest and that the
application should be denied.
On the basis of the facts of record, the application is
denied for the reasons summarized above.
By order of the Board of Governors, effective
April 1, 1981.
Voting for this action: Chairman Volcker and Governors
Schultz, Wallich, Partee, and Rice. Absent and not voting:
Governors Teeters and Gramley.
(Signed)
[s e a l ]
Ja m e s M c A f e e ,
A ssistan t Secretary o f the Board.
Independent Bank Corporation,
Ionia, Michigan
Order Denying Acquisition o f Bank
Independent Bank Corporation, Ionia, Michigan, a
bank holding company within the meaning of the Bank
Holding Company Act, has applied for the Board’s
approval under section 3(a)(3) of the Act (12 U.S.C.
§ 1842(a)(3)) to acquire 100 percent of the voting
shares of the successor by consolidation to The Old
State Bank of Fremont, Fremont, Michigan (“ Bank” ).
The bank to be created and the entity with which Bank
is to be consolidated has no significance except as a
means of facilitating the acquisition of the voting
shares of Bank. Accordingly, the proposed transaction
is treated in this Order as a proposed acquisition of
shares of Bank.
Notice of the application, affording opportunity for
interested persons to submit comments and views has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views has expired,
and the Board has considered the application and all
Legal Developm ents
comments received, in light of the factors set forth in
section 3(c) of the Act (12 U.S.C. § 1842 (c)).1
The Board has previously considered a proposal by
Applicant to acquire Bank. By Order dated Septem
ber 21, 1979 (“ September 21 Order”), the Board denied
Applicant’s proposed acquisition of Bank based upon
its determination that the bank to be acquired operated
in the same banking market as two of Applicant’s
existing subsidiary banks and that the elimination of
substantial existing competition between Applicant’s
subsidiaries and the bank to be acquired was a sub
stantially adverse factor that was not outweighed by
convenience and needs considerations. In its Septem
ber 21 Order, the Board determined that the relevant
banking market was the Fremont-Newaygo banking
market, approximated by the southern two-thirds of
Newaygo County. The Board noted that this view was
consistent with the Board’s and Applicant’s assess
ment of the relevant market in connection with a prior
proposal by Applicant to acquire its subsidiary, West
ern State Bank.2
In its September 21 Order the Board stated that
Bank (deposits of $23.8 million) was the largest bank
ing organization in the Fremont-Newaygo banking
market, controlling 27.6 percent of that market’s de
posits in commercial banks.3The record indicated also
that Applicant, through its control of The First State
Bank of Newaygo, Newaygo, Michigan (“ Newaygo
Bank” ), and the branch of Western State Bank, How
ard City, Michigan, located in Croton Township
(“ Western State Branch” ), was the third largest bank
ing organization in the Fremont-Newaygo market,
controlling 16.8 percent of total commercial bank
deposits in the market. The Board found that consum
mation of the transaction would increase Applicant’s
share of total market deposits in commercial banks to
44.4 percent and that Applicant would become the
largest banking organization in the market. In addi
tion, as a result of consummation, Bank would be
eliminated as an independent banking organization,
thereby reducing the number of independent banking
organizations in the market from six to five.
The record before the Board at this time indicates
that Applicant is the 33rd largest banking organization
in Michigan, controlling six banks with aggregate
deposits of $148.2 million, representing 0.37 percent of
1. Applicant has requested the opportunity to present oral argu
ment to the Board. The Board has reviewed the record in this case and
concludes that Applicant has been provided numerous opportunities
to present its views and that an oral presentation would serve no
purpose. Accordingly, Applicant’s request is hereby denied.
2. Independent Bank Corporation (63 F e d e r a l R e s e r v e B u l l e
t i n 153 (1977)).
3. The banking data relied on by the Board in its September 21
Order were as of June 30, 1978.
437
the total deposits in commercial banks in the state.4
Bank (deposits of $25.2 million) is the 227th largest
bank in Michigan, representing 0.06 percent of total
deposits in commercial banks in the state. Upon
consummation of the proposed transaction, Applicant
would become the 31st largest commercial banking
organization in Michigan and its share of statewide
commercial bank deposits would increase to 0.43
percent.
Applicant continues to urge the Board to re-evaluate
its earlier determination concerning the relevant geo
graphic banking market in which to consider the
competitive effects of this proposal. In support of its
position Applicant makes a number of arguments.5
Applicant asserts that since there is little service area
overlap between Bank and Newaygo Bank, consum
mation of this proposal would have no anticompetitive
effect. Applicant claims also that the “ competitive
effect of this transaction must be measured in some
other geographic market”—namely a larger, regional
market comprised of Kent, Muskegon, Ottawa and
Newaygo Counties.6
The Supreme Court has articulated a number of
factors to be considered in determining a geographic
banking market. See, United States v. Philadelphia
N ational Bank , 374 U.S. 321 (1963); United States v.
Phillipsburg N ational Bank & Trust C o ., 399 U.S. 350
(1970); See also M id-N ebraska Bancshares v. Board
o f G overnors , 627 F.2d 266 (D.C. Cir. 1980). These
cases indicate that the competitive effects of a pro
posed merger or acquisition should be judged on a
localized market in which banks offer their services
and to which local customers can practicably turn for
alternatives. The Supreme Court has stated in this
regard that “the proper question is not where the
parties to the merger do business or even where they
compete, but where, within the area of competitive
overlap, the effect of the merger on competition will be
direct and immediate.” United S tates v. Philadelphia
N ational Bank , supra at 357. In determining what this
area is, the Supreme Court sought “to delineate the
areas in which bank customers that are neither very
large or very small find it practical to do their banking
4. All banking data are as of December 31, 1979, unless otherwise
indicated, and reflect approval of Applicant’s application to acquire
Peoples Bank of Leslie, Leslie, Michigan, on January 16, 1981.
5. During the processing of this application, Applicant has had
numerous discussions concerning these very issues with the staffs of
the Federal Reserve Bank of Chicago (“ Reserve Bank” ) and the
Board, including a meeting on February 26, 1981, between Applicant’s
representatives and members of the staffs of the Reserve Bank and
Board.
6. While Applicant points out that in other cases the Board has
defined markets to include more than one county or to include rural
areas as part of contiguous urban markets, in every case the Board
looks at the relevant empirical data and determines the appropriate
geographic market based on such data.
438
Federal Reserve Bulletin □ May 1981
business, . . . ” United S tates v. Philadelphia N ation
al Bank , supra at 359.
A number of these factors indicate that the southern
two-thirds of Newaygo County is the relevant geo
graphic market within which to consider the competi
tive effects of this proposal. The record indicates that
Bank and Newaygo Bank are only 13 miles apart and
are directly connected by a highway, making these two
organizations practical alternatives to customers in
either town. In contrast, the other metropolitan areas
to which customers might turn are significantly farther
away; Fremont is approximately 30 miles from Muske
gon and 50 miles from Grand Rapids, while Newaygo
is approximately 37 miles from Grand Rapids and 43
miles from Muskegon. The close proximity of
Newaygo and Fremont is consistent with Applicant’s
submission showing that residents of Fremont are
customers of Newaygo Bank and that residents of
Newaygo are customers of Bank.7 Other evidence in
the record indicates that Fremont is the economic and
trade center of Newaygo County; Gerber Products
Company, the principal employer in the county, is
located in Fremont and residents from other parts of
Newaygo County commute to Fremont;8 the principal
newspaper in Newaygo county is published in Fre
mont and the only radio station in the county is also
located in Fremont; finally, Fremont is the largest
town in Newaygo County and the only one with two
banks.9
Other evidence in the record, including the percep
tions of bank presidents in Newaygo County, support
the Board’s market definition. In response to a Re
serve Bank survey, the president of the only other
commercial bank in Fremont stated that his primary
competitors were banks in Fremont, Newaygo, and
White Cloud, and that he did not view Muskegon and
Grand Rapids banks as his competitors. Bank presi
dents in Newaygo, White Cloud and Hesperia all
indicated that their primary competitors were other
Newaygo County banks.10 On balance, the Board
believes that despite the influence of banks located
outside of Newaygo County, the evidence shows that
the banks in Newaygo County view each other as their
principal competitors.
The Board has considered also the area from which
Newaygo County banks seek and derive their busi
ness. A Reserve Bank survey indicates that only
Newaygo County banks advertise on a regular basis in
the Fremont newspaper and that these banks advertise
very little in newspapers outside of Newaygo County.
The Board notes that the circulation area of the
Fremont newspaper approximates Newaygo County,
supporting the view that Newaygo County banks seek
business primarily within Newaygo County. More
over, the application shows that the deposit and loan
business of Bank and Newaygo Bank is confined to
Newaygo County. A Reserve Bank survey indicates
that this is also true of other Newaygo County banks.11
The Board concludes that the actual business transact
ed by Newaygo County banks is largely within
Newaygo County.
Finally, in response to a Reserve Bank survey,
several bankers in Muskegon and Grand Rapids indi
cated that their primary competitors are located in
their own counties, that they do not derive significant
mortgage loan business from Newaygo County, and
that they are not influenced by the Newaygo County
banks.12 The evidence also shows that banks outside
7. For example, data submitted by Applicant show that Bank
derives some $715 thousand in deposits and 13 percent of its install
ment loans from the service area of Newaygo Bank. Bank also draws
$999 thousand in loans, representing 10 percent of Newaygo Bank’s
loan portfolio, from Newaygo Bank’s service area (as defined by
Applicant). The Board believes these figures show that for a signifi
cant number of Newaygo residents, Bank is a practical alternative to
Newaygo Bank.
8. Although the data Applicant has submitted indicates that some
Newaygo County residents work outside the county in various
adjoining and contiguous counties, this data does not include the
substantial number of Newaygo County residents employed in agricul
ture or domestic work; nor does it include those who are selfemployed and, therefore, significantly overstates the percentage of
the county’s residents who are employed outside of Newaygo County.
Taking into account all employed Newaygo County residents, the
record shows that well over 70 percent of Newaygo County residents
work in Newaygo County. Applicant has also submitted data reflect
ing its survey of the banking and shopping patterns of a small number
of Newaygo County residents. In view of all the facts of record, the
limited number of persons surveyed cannot be regarded as determina
tive on this issue.
9. Applicant’s earlier application to acquire Bank revealed that
Fremont offers professional and retail services not to be found in
Newaygo and that there is a substantial amount of daily traffic
between Fremont and Newaygo.
10. Applicant has provided letters from the presidents of both the
Newaygo and White Cloud banks stating that advertising in the Grand
Rapids media did exert some influence over their services. In addi
tion, Applicant has submitted a letter from the president of the bank in
Grant (the town closest to the Newaygo/Kent County border), stating
that in addition to competing with other banks in Newaygo County, he
viewed some banks outside Newaygo County as his competitors. The
Board does not believe these submissions are inconsistent with its
view that banks in Newaygo County compete primarily with each
other. Geographic banking markets are not usually totally devoid of
some influence from adjacent markets.
11. Applicant has offered a number of calculations in support of its
contention that Newaygo County residents deposit substantial sums at
banks outside Newaygo County. These calculations do not represent a
tested methodology for estimating deposit outflows, and the Board
believes that reliance upon the results of such calculations is not
warranted. In any event, even if the Board shaded the geographic
market to take into account such deposits, the application shows that
Bank and Applicant’s combined share of the resulting market would
still be substantial.
12. Applicant does provide evidence showing that the three largest
banks in the four-county market hold several million dollars in
individual, partnership and corporate deposits with addresses in
Newaygo County. The Board recognizes that some customers located
in one geographic market will bank outside of that market, since large
customers are not locally constrained and certain individuals may
L egal D evelopm ents
Newaygo County do not regularly advertise in the
Fremont newspaper.
Based upon the foregoing, and all the evidence of
record, the Board is persuaded that the effect of this
transaction on competition would be direct and imme
diate in the Fremont-Newaygo banking market as
previously defined.
Under section 3(c) of the Bank Holding Company
Act, the Board is precluded from approving any pro
posed acquisition of a bank that in any part of the
country may substantially lessen competition or tend
to create a monopoly or be in restraint of trade in any
banking market, unless the Board finds that such
anticompetitive effects are clearly outweighed by the
convenience and needs of the community to be served.
Bank (with deposits of $25.2 million) is the largest
banking organization in the Newaygo County banking
market as defined herein, controlling 26.8 percent of
the market’s commercial bank deposits. Applicant,
through its control of Newaygo Bank and Western
State Branch (combined deposits of $15.0 million) is
the third largest banking organization in the relevant
banking market, controlling 15.9 percent of total com
mercial bank deposits in the Newaygo County banking
market. In view of the definition of the relevant
banking market adopted herein, upon consummation
of the proposed transaction Applicant would become
the largest banking organization in the FremontNewaygo banking market, controlling four of the nine
banking offices in that market, representing 42.7 per
cent of the market’s commercial bank deposits. Thus,
the Board concludes based upon the above analysis
and all the facts of record that the effects of this
proposal on competition in this market would be
substantially adverse.13
Applicant contends that thrift institutions should be
included by the Board in assessing the competitive
effects of this proposal. The Board concludes that
there is no evidence that thrifts in Michigan currently
compete actively with commercial banks over a suffi
cient range of financial services to such a degree that
they should be included in an analysis of the relevant
product market. Moreover, even if thrifts were includ
ed in the analysis, upon consummation of the transac
tion Applicant would control 35.3 percent of the
deposits in commercial banks and thrifts in the rele
choose to bank with a particular institution based on personal relation
ships with the organization. On balance, the Board does not believe
that the existence of these accounts outweighs the evidence in support
of the Board’s definition of the relevant banking market being
approximated by the southern two-thirds of Newaygo County.
13.
With regard to the meaning of the phrase “ substantially ad
verse” , the Board uses this phrase to indicate a violation of the
antitrust laws would result. See, e.g., 12 C.F.R. § 250.182 (1980).,
439
vant market, thereby eliminating substantial existing
competition. Accordingly, the Board concludes that
even if thrifts were included in an analysis of the
product market, denial of the proposal would be
warranted.
The financial and managerial resources and future
prospects of Applicant and its banking subsidiaries
and Bank are regarded as satisfactory. Accordingly,
considerations relating to banking factors are consis
tent with, but lend no weight toward approval of the
application. While Applicant proposes to assist Bank
in offering additional services there is no indication
that the needs of Bank’s customers are not currently
being met. Accordingly, the Board finds that consider
ations relating to the convenience and needs of the
community to be served do not outweigh the substan
tially adverse competitive effects that would result
from Applicant’s acquisition of Bank.
On the basis of the foregoing and other consider
ations reflected in the record, it is the Board’s judg
ment that consummation of the proposed transaction
would not be in the public interest, and the application
is hereby denied.
By Order of the Board of Governors, effective
April 14, 1981.
Voting for this action: Chairman Volcker and Governors
Schultz, Partee, Rice, and Gramley. Voting against this
action: Governor Wallich. Absent and not voting: Governor
Teeters.
(Signed) D.
[s e a l]
M ic h a e l M a n ie s ,
A ssistan t Secretary o f the Board.
Dissenting Statem ent o f Governor Wallich
I dissented from the Board’s denial of Applicant’s
prior proposal to acquire Bank because in my view, a
simple comparison of market shares among commer
cial banking organizations in the southern two-thirds
of Newaygo County failed to consider adequately the
geographic, functional, and organizational characteris
tics of this portion of western Michigan. I believe that
the Board’s continued adherence to its original analy
sis of this case fails to account adequately for econom
ic reality.
With respect to the delineation of an appropriate
geographic market, I believe there is some merit to
each of the various alternatives presented by Appli
cant. Moreover, Applicant’s inability to establish con
clusively one alternative market definition is not due
to a lack of evidence, but rather is a function of the
difficulty of measuring precisely economic activity in
rural areas located on the outskirts of larger urban
areas. In my earlier dissent, I described at length the
440
Federal Reserve Bulletin □ May 1981
factors which I believe weigh in favor of an alternative
to the Board’s view of the relevant geographic mar
ket.1 In connection with this application, Applicant
has submitted demographic data suggesting that the
connectors between Newaygo County and the adja
cent areas have continued to increase.2 Moreover,
Applicant’s evidence indicates that Old Kent Financial
Corporation, a statewide banking organization, has a
significant presence throughout the four-county mar
ket suggested by Applicant. In addition, recent legisla
tion has increased the powers of thrifts, thereby ex
panding the area of functional overlap between the
various kinds of depository institutions and I believe
that the presence of thrifts in Newaygo County miti
gates the Board’s finding of substantially adverse
competitive effects.
On balance, I continue to believe the competitive
effects resulting from consummation of this proposal
would be only slightly adverse and that the new
services Applicant proposes to introduce at Bank
outweigh such anticompetitive effects. For these rea
sons, I would approve this application.
April 14, 1981
National Detroit Corporation,
Detroit, Michigan
Order Approving Acquisition o f a Bank Holding
Company
National Detroit Corporation, Detroit, Michigan, a
bank holding company within the meaning of the Bank
Holding Company Act, has applied for the Board’s
approval under section 3(a)(3) of the Act (12 U.S.C.
§ 1842(a)(3)) to acquire 80 percent or more of the
voting shares of the successor by merger to National
Ann Arbor Corporation, Ann Arbor, Michigan
(“NAAC” ), thereby indirectly acquiring 100 percent
of the voting shares, less directors’ qualifying shares,
of National Bank and Trust Company of Ann Arbor,
Ann Arbor, Michigan (“ National Bank” ), and Monroe
County Bank, Dundee, Michigan (“ Monroe Bank”).
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3 of the Act,
and the time for filing comments and views has ex-
1. See 65 F e d e r a l R e s e r v e B u l l e t i n 869 (1979).
2. In particular, Applicant has submitted data indicating that em
ployment opportunities continue to grow outside Newaygo County
and that these opportunities serve as a draw on Newaygo County
residents. In addition, highway patterns suggest that commuting from
Newaygo County to adjacent areas for employment and other pur
poses is substantial.
pired. The Board has considered the application and
all comments received in light of the factors set forth in
section 3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant, the largest banking organization in Mich
igan, controls 12 banks with aggregate deposits of $6.3
billion, representing 15.7 percent of total deposits in
commercial banks in the state.1Acquisition of NAAC,
the 23d largest banking organization in the state with
two subsidiary banks having combined aggregate de
posits of $223.8 million, would increase Applicant’s
share of total deposits in commercial banks in Michi
gan by 0.6 percent. Given the structure of banking in
Michigan, it does not appear that approval of this
application would have any significantly adverse ef
fects upon the concentration of banking resources in
the state.
None of Applicant’s banking subsidiaries is located
in banking markets where NAAC’s two banking sub
sidiaries are located.2 Accordingly, the Board con
cludes that no significant existing competition would
be eliminated upon consummation of the proposal.
The Board has also examined the effects of the
proposal on potential competition with respect to
markets where NAAC’s subsidiary banks are located,
the Ann Arbor and Monroe banking markets.3Nation
al Bank holds commercial banking deposits of $203.1
million, representing 20.5 percent of deposits in the
Ann Arbor banking market and is the second largest of
15 banking organizations in the market. However, the
Board notes that the market does not appear to be
highly concentrated and is only mildly attractive for de
novo entry. Moreover, the possible adverse effects of
the proposal on potential competition are mitigated by
the presence of a large number of sizable commercial
banking competitors in the market. Monroe Bank
holds commercial banking deposits of $15.2 million,
representing 5.2 percent of deposits in the Monroe
banking market, and is the fourth largest of six banking
organizations in the market. With the two largest
banking organizations in the market holding a com
bined share of market deposits of almost 75 percent,
the Monroe market appears to be highly concentrated.
In view of the relative and absolute size of Monroe
Bank in the market, the Board regards Applicant’s
1. All banking data are as of June 30, 1980.
2. Applicant has subsidiary banks located in the Detroit, Cadillac,
Big Rapids, Grand Rapids, Kalamazoo-Battle Creek, Benton Harbor,
Lansing, Port Huron, Bay City-Saginaw, and Alpena banking mar
kets. NAAC, on the other hand, has subsidiary banks in the Ann
Arbor and Monroe banking markets.
3. The Ann Arbor banking market is approximated by Washtenaw
County, Michigan (minus Salem township) and Putnam, Hamburg and
Green Oak townships in Livingston County. The Monroe banking
market is approximated by all of Monroe County except for Whiteford, Bedford, Erie, Ida, Ash, and Berlin townships.
L egal D evelopm ents
entry into the Monroe market as having a positive
effect on competition in that market. In view of all the
facts of record, including the structure of the Ann
Arbor and Monroe banking markets, the Board con
cludes that consummation of the proposal would have
no significantly adverse effects upon potential compe
tition in these markets.
The financial and managerial resources of Appli
cant, its subsidiaries and NAAC are regarded as
satisfactory and the future prospects of Applicant and
its subsidiaries appear favorable. Following consum
mation of this proposal, Applicant proposes to expand
the services of NAAC’s banking subsidiaries by offer
ing continuous interest compounding on time certifi
cates, making available limited-term rollover mort
gages, installing ATMs at Monroe Bank’s location,
and making available to NAAC specialized financial
services provided by Applicant and its nonbank sub
sidiaries. Thus, the Board concludes that consider
ations relating to the convenience and needs of the
community to be served lend sufficient weight toward
approval to outweigh any adverse competitive effects
associated with this proposal.
Based upon the foregoing and other considerations
reflected in the record, it is the Board’s judgment that
the proposed acquisition is in the public interest and
that the application should be approved.
On the basis of the record, the application is ap
proved for the reasons summarized above. The trans
action shall not be made before the thirtieth calendar
day following the effective date of this Order or later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board, or by the Federal Reserve Bank of
Chicago pursuant to delegated authority.
By order of the Board of Governors, effective
April 20, 1981.
Voting for this action: Chairman Volcker and Governors
Schultz, Wallich, Partee, Teeters, Rice, and Gramley.
(Signed)
[s e a l]
Ja m es M c A fe e ,
A ssistan t Secretary o f the Board.
Texas Commerce Bancshares, Inc.,
Houston, Texas
441
percent of the voting shares, less directors’ qualifying
shares, of the successor by merger to Gulfway Nation
al Bank of Corpus Christi, Corpus Christi, Texas
(“Gulfway”). Applicant has also applied for approval
under section 3(a)(3) to acquire 100 percent of the
voting shares, less directors’ qualifying shares, of the
successor by merger to The Mercantile National Bank
of Corpus Christi, Corpus Christi, Texas (“ Mercan
tile”). In each application the bank into which Bank
would be merged has no significance except as a
means to facilitate the acquisition of Bank’s voting
shares.
Notice of the applications, affording interested per
sons opportunity to submit comments and views, has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views has expired,
and the Board has considered the applications and all
comments received in light of the factors set forth in
section 3(c) of the Act, 12 U.S.C. § 1842(c).
Applicant is the third largest banking organization in
Texas controlling 41 banks with aggregate deposits of
$6.3 billion, which represents 8.2 percent of deposits
in the state.1Gulfway, with 0.04 percent of statewide
deposits ($27.3 million), is the 417th largest banking
organization in the state. Mercantile is the 196th
largest banking organization in Texas, with 0.06 per
cent of statewide deposits ($47.0 million). Upon con
summation of both of these proposals, Applicant
would continue to rank third among Texas banking
organizations, controlling 8.3 percent of the state’s
deposits. Therefore, acquisition of both banks by
Applicant would not materially alter statewide deposit
concentration or the structure of the banking system in
Texas.
Both banks are located in the Corpus Christi bank
ing market.2Gulfway is the 13th largest of 15 banking
organizations in the market with two percent of its
deposits; Mercantile is seventh largest with 3.5 per
cent of market deposits. Although both Banks operate
in the same market, the Board notes that they share a
long history of common ownership: Gulfway was
established by Mercantile’s major shareowners; cur
rently, the same shareholders own 65.6 percent of
Mercantile and 71.8 percent of Gulfway; senior man
agement at both Banks is similar; and four persons
hold directorship at both Banks. Because of these
relationships, it appears that no meaningful competi
tion currently exists between Mercantile and Gulfway
Order Regarding P roposed Acquisition o f Banks
Texas Commerce Bancshares, Inc., Houston, Texas
(“Applicant” ), a bank holding company within the
meaning of the Bank Holding Company Act, has
applied for the Board’s approval under section 3(a)(3)
of the Act, 12 U.S.C. § 1842(a)(3), to acquire 100
1. Unless otherwise indicated, all banking data are as of Decem
ber 31, 1979, and reflect bank holding company formations and
acquisitions approved as of December 31, 1980.
2. The Corpus Christi banking market is approximated by the
Corpus Christi Standard Metropolitan Statistical Area, which consists
of Nueces and San Patricio counties in Texas.
442
Federal Reserve Bulletin □ May 1981
and, accordingly, acquisition of both by a bank holding
company would not eliminate any significant existing
competition between them.
Applicant is represented in the market by its subsid
iary, Guaranty National Bank and Trust, Corpus
Christi, Texas (“ Guaranty” ), which is the fourth larg
est banking organization in the market, with $89.7
million in deposits, representing 6.7 percent of the
deposits in the market.
Viewed as a single banking organization because of
common control, Mercantile and Gulfway control 5.5
percent of market deposits. Acquisition of both banks
by Applicant would increase Applicant’s market share
to 12.2 percent, making it the third largest banking
organization in the market and increase the market
share of the four largest firms in the market from 58.0
percent to 63.5 percent, an increase that would repre
sent a reversal of recent trends toward deconcentra
tion in the market. The Board notes that such an
increase would also exceed the limits specified in the
Department of Justice’s merger guidelines. Acquisi
tion of both banks would eliminate a significant
amount of existing competition between Applicant on
the one hand and banks on the other. Guaranty and
Mercantile are located three miles apart, and an analy
sis of loan and deposit figures reveals that Mercantile
and Gulfway obtain a substantial amount of their
deposits and loans from Guaranty’s service area and
Guaranty receives a significant portion of deposits and
loans from the service areas of Mercantile and Gulf
way. While the Board recognizes that a service area
overlap analysis represents at best an imprecise mea
sure of competition within a geographical market, the
figures noted above demonstrate that each of the three
banks does a significant amount of business through
out the Corpus Christi market.
In view of these facts, the Board regards the com
petitive effects of Applicant’s acquisition of both
Banks as substantially adverse.3These effects require
denial of the applications unless they are clearly
outweighed in the public interest by the probable effect
of the transaction in meeting the convenience and
needs of the community to be served.
Acquisition of Gulfway alone, however, would lead
3.
In consideration of the competitive effects of the proposals, the
Board also considered competition provided by thrift institutions in
the Corpus Christi banking market. A field investigation by the staff of
the Federal Reserve Bank of Dallas revealed that while all savings and
loan associations in the market would begin offering NOW accounts
and some were prepared to offer consumer loans, none were prepared
to offer commercial loans, and only one of the larger associations was
prepared to offer other services allowed by recent legislation. Because
of these factors, the Board concludes that thrift institutions in the
Corpus Christi market do not provide sufficient competition to alter
the Board’s conclusions regarding the competitive effects of these
proposals in any significant way.
to only slightly adverse competitive effects. In such a
case, Applicant would still move from fourth to third
place among banking organizations in the market, but
its market share would increase by only two percent.
The four-firm concentration ratio would also grow, but
only to 60 percent. Further, Applicant’s purchase of
Gulfway would require bank’s disaffiliation from Mer
cantile,4 leaving the market with the same number of
competitors, and leaving Mercantile as a potential
entry vehicle for other Texas bank holding companies
not yet represented in the market.
Acquisition of both Banks by Applicant would pro
vide the acquirees with investment assistance from
Applicant, expanded lending capabilities resulting
from ability to arrange loan participations, and access
to specialized services and personnel of the holding
company, all of which would enable Banks to serve
their customers more effectively. Furthermore, Appli
cant plans to expand Gulfway Bank’s existing facili
ties. However, it appears that these benefits are al
ready being provided in the market by Applicant, and
there is no evidence that the anticipated improvements
at Banks could not be obtained by their acquisition by
another bank holding company not currently repre
sented in the market, or through internal growth and
expansion. On balance, therefore, the Board finds that
these considerations relating to the convenience and
needs of the community to be served lend weight
toward approval that is sufficient to outweigh the
slightly adverse effects associated with the acquisition
of Gulfway, but not sufficient to outweigh the substan
tially adverse effects which would result from acquisi
tion of both Banks.
The financial and managerial sources and future
prospects of Applicant, its subsidiaries, and Banks are
regarded as generally satisfactory, and the Board finds
that banking factors are consistent with approval.
Based on the foregoing and other considerations
reflected in the record, it is the Board’s judgment that
the proposed acquisition of Mercantile and Gulfway,
when viewed as a unit because of common control is
not in the public interest and should be denied. Also on
the basis of the facts recited above and other consider
ations reflected in the record, the proposed acquisition
of Gulfway is in the public interest and should be, and
hereby is, approved. The proposed acquisition of
Mercantile is denied. The acquisition of Gulfway shall
not be made before the 30th calendar day following the
effective date of this Order or later than three months
after that date, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
Dallas, pursuant to delegated authority.
4. See 12 C.F.R. § 212.6.
Legal Developments
By order of the Board of Governors, effective
April 10, 1981.
Voting for this action: Vice Chairman Schultz and Gover
nors Wallich, Partee, Rice, and Gramley. Absent and not
voting: Chairman Volcker and Governor Teeters.
[s e a l ]
(Signed) J a m e s M c A f e e ,
Assistant Secretary o f the Board.
Orders Under Section 4 o f B ank H olding
Company A c t
443
such findings would have on the question of unfair
competition generally, and voluntary tie-ins in particu
lar, and ultimately, on the net public benefits determi
nation under section 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)).2In response to the Court’s remand, the
Board directed Citicorp to supplement the record on
these issues and at the same time afforded Protestants
an opportunity to comment on these issues and on
Citicorp’s submissions. The Board has re-examined
the record as supplemented, and, based on that re
view, makes the following findings as to facts, and
conclusions drawn therefrom.
Background
Citicorp,
New York, New York
Order Granting Determination Under the Bank
Holding Company Act
On May 25, 1979, the Board approved the application
of Citicorp, New York, New York (“ Citicorp” ), filed
pursuant to section 4(c)(8) of the Bank Holding Com
pany Act (12 U.S.C. § 1843(c)(8)) (the “ Act” ), and
section 225.4(b)(1) of the Board’s Regulation Y (12
C.F.R. § 225.4(b)(1)), to engage de novo through its
indirect subsidiary, Citicorp Person-to-Person Finan
cial Center of Connecticut, Inc., in Westport, Con
necticut (“ Person-to-Person” ), in second-mortgage
lending and in credit-related insurance agency activi
ties. The application had been protested by the Con
necticut Bankers Association and The Connecticut
Bank and Trust Company, both of Hartford, Connecti
cut (together, “ Protestants” ), who subsequently peti
tioned for judicial review of the Board’s Order.
On February 7, 1980, the United States Court of
Appeals for the District of Columbia Circuit affirmed
in substantial part the Board’s Order.1However, the
Court found the administrative record did not contain
sufficient evidence to support the Board’s finding that
Citicorp would not engage in unfair competitive prac
tices in its promotion of the Westport office of Personto-Person. Accordingly, the Court instructed the
Board to supplement the record on this question and to
determine whether there were any material disputed
factual issues concerning unfair competitive practices
by Citicorp requiring an evidentiary hearing. Specifi
cally, the Court ordered a limited remand of the
administrative record of the case to the Board, direct
ing the Board to explore the manner in which this de
novo subsidiary would be promoted and represented
to the public, and to determine what effect, if any,
1. The Court did not vacate the Board’s Order and Person-to-Person
has commenced operations.
On September 26, 1978, Citicorp filed with the Federal
Reserve Bank of New York notice of its proposal to
establish a de novo office of its indirect subsidiary
Person-to-Person,3 and thereby engage in consumer,
mortgage and business lending in a five-county area in
Connecticut.4 Protestants submitted comments in op
position to Citicorp’s proposal based on the following:
(1) the structural, managerial, and operational inter
relationship among Citicorp, Citibank, N.A. (a whollyowned subsidiary of Citicorp), Nationwide, and Person-to-Person indicated that the operation of the
Westport office of Person-to-Person would constitute
a unitary operation and, therefore, branch banking in
violation of Connecticut and federal law and, (2)
approval of the proposal would result in undue con
centration of economic resources, diminution of com
petition, and potential unfair competition against Con
necticut banks, and that these adverse effects were not
outweighed by the public benefits.
On May 25, 1979, the Board denied Protestants’
request for a hearing and approved Citicorp’s applica
tion. The Board rejected Protestants’ contention that
operation of Person-to-Person would constitute
branch banking and found that approval of the applica
tion would result in net public benefits.
In response to the Board’s approval, on May 30,
1979, Protestants filed a petition for judicial review of
the Board’s Order in the United States Court of
Appeals for the District of Columbia Circuit, alleging
that the Board erroneously deprived them of their
statutory right to an evidentiary hearing. On Febru
ary 7, 1980, the Court issued an opinion ordering a
2. Connecticut Bankers A ssociation and The C onnecticut Bank and
Trust Company v. B oard o f G overnors o f the F ederal R eserve System ,
627 F.2d 245 (D.C. Cir. 1980).
3. Person-to-Person is a direct subsidiary of Citicorp Person-toPerson Financial Center, Inc., St. Louis, Missouri, originally Nation
wide Financial Services, Inc., also of St. Louis, Missouri.
4. Subsequently Citicorp amended its proposal to include only
second-mortgage lending and credit-related insurance agency activi
ties.
444
Federal Reserve Bulletin □ May 1981
limited remand of the administrative record in this
matter to the Board to further explore the manner in
which this office would be promoted and represented
to the public and how this would affect the net public
benefits question.
With respect to the branch banking question, the
Court concluded that the Board properly denied Pro
testants’ request for a hearing. The Court found that
Protestants had not submitted any evidence that would
indicate Person-to-Person would be engaged in the
banking business or be a branch of Citibank.
The Court also considered the Board’s determina
tion whether the public benefits of the proposed activi
ty were reasonably likely to outweigh its adverse
effects. Initially, the Court noted that the Board’s
reasoned determination that second-mortgage lending
and the sale of credit-related insurance would result
generally in net public benefits was entitled to a
presumption of validity. Moreover, the Court agreed
with the Board’s conclusion that the fact this proposal
represented de novo entry by Citicorp constituted a
public benefit within the meaning of section 4(c)(8).
However, with respect to the possibility of adverse
effects the Court found that Protestants had “ pro
duced some evidence as to the size of Citicorp, the
proliferation of its lending subsidiaries, and the precar
ious, competitive position of the Connecticut banking
industry.” Despite the evidence submitted by Protes
tants, the Court concluded the Board properly denied
a hearing on this issue since the record did not show
that a hearing would produce any additional meaning
ful facts. The Court also agreed with the Board that a
hearing concerning potential undue concentration of
resources was not warranted and that the Board’s
finding that the proposal “ shall have a salutary effect
on competition” was proper.
Lastly, the Court considered whether the Board
adequately addressed the issue of Citicorp’s potential
unfair competitive practices. With respect to this issue
the Court found that while the merits of the question
were for the Board to resolve, the record did not
disclose that the Board had a sufficient basis upon
which to conclude that Citicorp would not engage in
unfair competitive practices. In particular, the Court
noted that Citicorp might exploit the “ Citicorp” or
“ Citibank” name in connection with its promotion of
the Westport office of Person-to-Person, and that
operation of that office raised the question of the
possibility of “ voluntary tying” of services offered by
Person-to-Person and Citibank. Accordingly, the
Court remanded the administrative record to the
Board with the direction to supplement the record
concerning Citicorp’s proposed promotional efforts. In
so doing, the Court observed that the legislative con
cern for the misuse of bank holding company power
should be considered by the Board in connection with
its determination of the net public benefits question. In
addition, the Court instructed the Board to consider
the impact of the uniqueness of this Citicorp proposal
since the office “ would be located in a ‘bedroom
community’ of New York City, the home of Citicorp
and Citibank.”
Possibility o f Unfair Competitive Practices
In response to the Court’s remand, the Board request
ed Citicorp to submit information concerning its pro
motional efforts on behalf of the Westport office of
Person-to-Person, as well as information relating to its
promotional efforts on behalf of other Person-to-Person offices. The Board also requested Citicorp to
describe whether the operation of Person-to-Person
would result in voluntary tie-ins in light of the geo
graphic proximity of Westport to Citibank’s offices in
New York City. The Board also asked Citicorp wheth
er Person-to-Person, or its employees, would be com
pensated if one of its customers subsequently became
a customer of Citibank, or whether Citibank would be
provided in mailing list of customers of Person-toPerson. Lastly, the Board inquired what action Citi
corp would be willing to take in the event the Board
determined voluntary tie-ins might result from this
proposal.
Citicorp has submitted detailed responses to each of
the Board’s inquiries concerning its promotional ef
forts on behalf of Person-to-Person. Citicorp has stipu
lated that Person-to-Person would be operated inde
pendently of Citibank and that it would be contrary to
general corporate policy to compensate Person-toPerson or its employees in the event a customer
subsequently utilized the services of Citibank. In
addition, Citicorp has provided advertising copy to be
used in promoting the Westport and other Person-toPerson offices. Moreover, Citicorp has committed that
Person-to-Person will insert the following language as
part of the documentation of every loan transaction:
Customers of Citicorp Person-to-Person Financial Center,
Inc. are not obliged to take services from Citibank, and the
fact that you may or may not have a relationship with
Citibank will have absolutely no bearing on the granting o f a
loan to you by Citicorp Person-to-Person Financial Center of
Connecticut, Inc.
In considering applications filed pursuant to section
4(c)(8) of the Act, one of the factors the Board must
consider is whether the public benefits of the proposed
activity are reasonably likely to outweigh its possible
adverse effects such as the undue concentration of
resources, decreased competition and unfair competi
tive practices. The Court upheld the Board’s conclu
Legal Developments
sions that operation of Person-to-Person would not
result in undue concentration of resources, or de
creased competition while remanding the case to the
Board solely with respect to potential unfair competi
tive practices by Citicorp in connection with its pro
motional efforts on behalf of Person-to-Person. In so
doing, the Court instructed the Board to investigate
whether Citicorp will make excessive use of the Citi
corp or Citibank name in promoting the office and
whether this has the potential to result in voluntary tieins between Person-to-Person and Citibank and if so,
how these factors would affect the Board’s determina
tion of net public benefits.
In order to investigate these matters the Board has
considered the language of section 4(c)(8) of the Act,
its legislative history, the results of the Board’s experi
ence in administering section 4(c)(8) of the Act, and
the administrative record in this matter. While the
statute does not expressly mention the potential for
“ voluntary tie-ins” as a factor affecting the net public
benefits calculus, the legislative history indicates Con
gress intended the Board to consider whether such a
finding would affect this determination. Specifically,
Congress was concerned that a customer’s realization
that he stands a better chance of securing a rare and
important commodity (such as credit) by “ volunteer
ing” to accept other products or services would induce
the customer to purchase other services as well.
Congress’ intent in this regard was to insure that a
customer did not purchase a product unless he volun
tarily chose to do so. The legislative history to section
4(c)(8) indicates that Congress viewed the potential for
“ voluntary tie-ins” as “ basically structural” , i.e. in
herent in the market structure for a particular product,
and in the nature of a multiproduct organization.
Congress noted also that banks have the unique ability
to extend commercial credit.5
The Board has reviewed the promotional materials
relating to the Westport office of Person-to-Person as
well as those relating to other offices of Person-toPerson. These materials reflect the type of services
being offered by Person-to-Person and do not indicate
what other additional services are available from Citi
bank or any other affiliate of Citicorp. Moreover, the
5. H.R. Rep. No. 1747, 91st Cong. 2nd Sess. (1970), Congressional
R ecord S6909 (May 11, 1970) (remarks of Sen. Brooke). While the
potential for “ voluntary tying” is not limited to bank credit, the
legislative history to section 4(c)(8) indicates Congress was particular
ly concerned that bank holding companies could induce bank custom
ers to accept other products or services from non-bank affiliates based
on the unique ability of banks to extend commercial credit. To the
extent recent legislation has expanded the powers of other financial
institutions to extend commercial credit, this “unique ability” has
been reduced. Moreover, this is an application to engage in secondmortgage lending, a consumer-finance product offered by various
financial institutions.
445
materials do not reference the geographic proximity of
Person-to-Person to Citibank.6 The Board notes also
that since Person-to-Person has commenced opera
tions, there is no evidence indicating that Applicant
has promoted Person-to-Person by unfair means. Ac
cordingly, the Board concludes that the products being
offered by Person-to-Person are being marketed inde
pendently of the products offered by Citibank. In
addition, the Board finds that the promotional materi
als relating to Person-to-Person cannot be construed
as promoting the services offered by Citibank or any
other Citicorp affiliate.
The Board has examined the promotional materials
submitted by Citicorp with respect to other potential
unfair competitive practices, particularly the potential
exploitation or excessive use of the Citicorp name.
Some of these materials do reference the fact that
Person-to-Person is a subsidiary of Citicorp; however,
the size of typeset used and its placement indicate
relatively little emphasis on the “ Citicorp” logo.
Moreover, the main thrust of these materials is “ Per
son-to-Person” and little or no mention is made of the
fact that the company’s name is “ Citicorp Person-toPerson Financial Center of Connecticut, Inc.” Ac
cordingly, the Board concludes that there is no evi
dence in the record indicating Citicorp intends to
engage in any unfair competitive practices in connec
tion with its promotion of Person-to-Person. More
over, the language made a part of the documentation
of every loan transaction clearly informs the borrower
that the likelihood of his receiving a loan from Personto-Person is in no way dependent on a relationship
with Citibank. The Board finds that the promotional
activities of Person-to-Person do not significantly link
Person-to-Person with Citibank. Thus, the Board con
cludes that the Person-to-Person proposal has not
resulted in, and for this reason is not likely to result in,
voluntary tie-ins or any other adverse effect. Even
apart from possible misuse of the promotional materi
als the Board finds the possibility of voluntary tie-ins
unlikely in this case.
The Board notes that Congress did not prohibit all
bank holding company expansion into nonbank activi
ties, but rather directed the Board to evaluate the
public benefits associated with such expansion. More
over, Congress did not determine that a finding of
voluntary tie-ins would require denial of a particular
6. In its response to Citicorp’s submission Protestants do not show
how these materials or any actions on the part of Person-to-Person
employees are intended to induce customers to purchase products
from Citibank and, in fact, acknowledge there is no evidence of such
conduct. Moreover, since the Court’s remand of this matter to the
Board, Protestants have not provided the Board any evidence or
example of a voluntary tie-in that has occurred in connection with the
operation of the Westport office of Person-to-Person.
446
Federal Reserve Bulletin □ May 1981
proposal, merely that such arrangements were a factor
for the Board to consider in making its “ public bene
fits” determination. The Board is of the view that the
potential for “ voluntary tying” is structural; that is,
based upon the nature of competition in the relevant
market areas, and that voluntary tying is not a problem
in competitive markets.7Moreover, the fact that indi
viduals purchase more than one product from a firm is
not necessarily evidence of “ voluntary” tying. In
Alabama Association o f Insurance Agents v. Board o f
Governors o f the Federal Reserve System 533 F2 224
(5th Cir. 1976) the Court noted that a borrower’s
purchase of insurance from his lender may be the
result of “greater convenience, a strong personal
relationship with the lender or better price or service”
and not necessarily the result of “ voluntary tie-ins” .
Second mortgage loans are a kind of consumer finance
product offered by various financial institutions, in
cluding Protestants, and there is little likelihood that
the Westport office of Person-to-Person would be in a
position to encourage its customers to utilize the
services of Citibank. The Board has determined previ
ously there are no significant adverse effects such as
voluntary tying, inherent in the performance of a
nonbanking activity by a bank holding company on a
de novo basis. In a market where a number of alterna
tive sources for a product are available, the possibility
of voluntary tying is most unlikely.
The Board has thoroughly considered the issues that
formed the basis of the Court’s remand, Protestants’
claims and submissions, and all other evidence of
record. Based upon this review the Board concludes
that the manner in which Citicorp will promote Per
son-to-Person does not involve excessive use of the
Citicorp name and that there is no evidence of volun
tary tie-ins between Person-to-Person and Citibank.
The Board further concludes, based on all the facts of
record including the fact there is no evidence Citicorp
has engaged in unfair competitive practices in operat
ing its other nonbanking subsidiaries that engage in the
same or similar activities as Person-to-Person, that
there is no evidence Citicorp will engage in other
unfair competitive practices in connection with its
promotion of this office. Public benefits continue to
outweigh any potential adverse effects.
Need for a Hearing
Under section 4(c)(8) of the Act, the Board is only
required to hold a hearing when the record indicates
there are issues of fact that are material to the Board’s
7. For example, see Staff Study 101, Tie-Ins B etween the Granting
o f Credit and Sale o f Insurance by Bank H olding C om panies and
Other Lenders by Robert A. Eisenbeis and Paul R. Schweitzer, Board
of Governors of the Federal Reserve System, 1979.
decision and that are disputed by the relevant parties.8
While a hearing request may not be lightly denied,
“ . . .an agency is not required to hold an evidentiary
hearing when it can serve absolutely no purpose” .9In
this regard, the Court in Connecticut Bankers held that
under section 4(c)(8) “ a Protestant does not become
entitled to an evidentiary hearing merely on request,
or on a bald or conclusory allegation that such a
dispute exists” . In response to the Board’s concerns
regarding the potential for adverse effects associated
with Citicorp’s promotional efforts on behalf of the
Westport office of Person-to-Person, Citicorp has
committed to insert a written statement in each loan
document closed by Person-to-Person, disclaiming
any connection between the granting of the loan and
any services the customer may choose to take from
Citibank. Moreover, Citicorp has stated that this office
will be operated as an independent entity and that it
will not provide Citibank with any information con
cerning its customers. Protestants have not provided
any evidence indicating that Citicorp will conduct the
office of Person-to-Person in a contrary manner. Nor
have Protestants provided any evidence that Citi
corp’s promotional efforts on behalf of Person-toPerson might result in any adverse effects warranting
further investigation by the Board. Protestants do not
dispute the evidence Citicorp has submitted concern
ing its promotional efforts on behalf of Person-toPerson and indicate as much in their response to
Citicorp’s submission. The objections Protestants
raise at this time have no relevance to the issues raised
by the Court’s remand.10
Lastly, Protestants assert that the record is inade
quate at this time and that there are a number of
questions still unresolved. With this contention the
Board is unable to agree. The unresolved questions
raised by Protestants at this time are not relevant to
the issues raised by the Court’s remand or the require
ments of section 4(c)(8) of the Act. Nor do Protestants’
conclusions concerning the potential for voluntary tie8. Connecticut Bankers A ssociation, supra.
9. Independent Bankers A ssociation v. B oard o f G overnors 516 F2d
1206, (D.C. Cir. 1975).
10. Specifically, Protestants raise the following questions concern
ing the operation of Person-to-Person: (1) the size of Citicorp and the
impact this would have on the perceptions of potential customers of
Person-to-Person; (2) the reference to Citicorp in the advertisements
promoting Person-to-Person, particularly the statement that Citicorp
is a banking organization; and (3) the failure to specify in certain
advertisements that Person-to-Person would engage only in secondmortgage lending. Lastly, Protestants contend that the answers pro
vided by Citicorp “ address only one-half of the equation of unfair
competitive practices [and that the Board should consider] activities
by Citicorp Person-to-Person which would promote the business of
Citibank” . Accordingly, the Board should inquire into “the extent to
which activities by Citibank, directly or indirectly, may be used to
unfairly promote the business of Citicorp Person-to-Person in Con
necticut.” Thus, Protestants conclude the Board should order an
evidentiary hearing on these questions.
Legal Developments
ins or other unfair competitive practices by Citicorp
warrant an adjudicatory hearing inasmuch as these are
matters Congress has indicated are for the Board’s
judgment.11Accordingly, the Board is of the view that
a hearing on this application would serve no purpose
and is not warranted.
Review of the record at this time indicates that there
are no material issues in dispute concerning the man
ner in which this office will be promoted and repre
sented to the public. Moreover, the Board concludes
that the record at this time contains sufficient facts for
the Board to reach these conclusions.12
Accordingly, on the basis of the entire record in this
matter, including the record and findings made with
respect to the Board’s May 25, 1979 Order, it is the
Board’s judgment that Citicorp’s application continues
to warrant approval. This determination is subject to
the conditions set forth in section 225.4(c) of the
Board’s Regulation Y and to the Board’s authority to
require such modification or termination of the activi
ties 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 issued thereunder, or to prevent evasion
thereof. The application of Citicorp is again approved.
By Order of the Board of Governors, effective
April 16, 1981.
Voting for this action: Chairman Volcker and Governors
Partee, Rice, and Gramley. Present and abstaining: Gover
nors Schultz and Wallich. Absent and not voting: Governor
Teeters.
[s e a l ]
(Signed) J a m e s M c A f e e ,
Assistant Secretary o f the Board.
The Conifer Group, Inc.,
Worcester, Massachusetts
Order Approving Data Processing Activities
The Conifer Group, Inc., Worcester, Massachusetts
(“ Applicant” ), a bank holding company within the
11. Protestants question also whether Citibank would engage in
unfair competitive practices on behalf of Person-to-Person in West
port. There is no evidence in the record that would indicate undertak
ing such an investigation at this time is warranted.
12. The Court’s opinion states: “ In making its net public benefits
determination, the Board’s reasoned judgments are entitled to some
deference in view of its considerable expertise and experience in
administering the Bank Holding Company Act. In addition, although
the Board’s inquiry must proceed with rigor, we cannot require it to
investigate every potential adverse contingency which a protestant
hypothesizes.” Connecticut Bankers supra at 254. See also A labam a
A ssociation o f Insurance A gen ts, supra at 251.
447
meaning of the Bank Holding Company Act (“ Act” ),
has applied pursuant to section 4(c)(8) of the Act
(12 U.S.C. § 1843(c)(8)) and section 225.4(b)(1) of the
Board’s Regulation Y (12 C.F.R. § 225.4(b)(1)), for
permission to engage in data processing activities
through its wholly-owned subsidiary, Conifer Comput
er Services, Inc., Worcester, Massachusetts (“ CCS”).
The Board has determined that data processing activi
ties are closely related to banking and therefore
permissible for bank holding companies (12 C.F.R.
§ 225.4(a)(8)).
Notice of the application, affording opportunity for
interested persons to submit comments on the public
interest factors, has been duly published.1(45 Federal
Register 31,202 (1980)). Comments were received
from Applied Data Incorporated, North Haven, Con
necticut (“ Applied Data” ), the Association of Data
Processing Service Organizations, Arlington, Virginia
(“ ADAPSO” ), and Information Systems Incorporat
ed, Pawtucket, Rhode Island (collectively, “ Protes
tants” ). The time for filing comments has expired, and
the Board has considered all of the comments received
in light of the considerations specified in section
4(c)(8) of the Act.
Applicant, which controls three subsidiary banks
with aggregate deposits of $443.1 million and is the
ninth largest commercial banking organization in Mas
sachusetts,2proposes that CCS will provide data proc
essing services for the holding company, its subsidiar
ies, certain customers of its banking subsidiaries, and
other commercial and savings banks. These services
are currently being provided to the holding company
and its subsidiaries through two of Applicant’s subsid
iary banks: Guaranty Bank and Trust Company,
Worcester, Massachusetts, and Berkshire Bank and
Trust Company, Pittsfield, Massachusetts. This appli
cation is therefore partially a reorganization of existing
operations. However, Applicant also proposes that
CCS will directly market its services to the general
public. CCS will have offices in Worcester and Pitts
field, Massachusetts, and serve the state of Massachu
setts.3
Section 4(c)(8) of the Act provides that the Board
may approve a bank holding company’s application to
1. This application was initially being processed under the proce
dures set forth in section 225.4(b)(1) of Regulation Y (12 C.F.R.
§ 225.4(b)(1)) as a proposal to engage de novo in activities determined
by the Board to be closely related to banking. Because of the nature of
the protests filed, it was determined that the application should be
processed by the Board.
2. Banking data are as of March 31, 1980.
3. The application states that Applicant plans expansion into other
New England states and New York. However, as Applicant has
informed the Board that such expansion is being considered only for
the distant future, this Order relates only to Applicant’s activities in
Massachusetts. Further expansion by Applicant must receive addi
tional approval by the Board.
448
Federal Reserve Bulletin □ May 1981
engage in nonbanking activity only after the Board has
determined that the proposed activity is closely related
to banking and that the performance of the proposed
activities by a nonbanking subsidiary of a bank holding
company can reasonably be expected to provide bene
fits to the public such as greater convenience, in
creased competition, or gains in efficiency, that out
weigh possible adverse effects, such as undue
concentration of resources, decreased or unfair com
petition, conflicts of interests, or unsound banking
practices.
Protestants have generally alleged that the activities
Applicant proposes to engage in are not permissible
for bank holding companies, that Applicant will possi
bly be able to compete unfairly with independent data
processing service companies, and that there are no
public benefits which attend this proposal to outweigh
the asserted possible adverse effects. Discussion of
these issues follows.
Permissibility
Applicant has requested permission to engage in the
following activities: payroll processing, accounts re
ceivable processing, accounts payable processing,
automated lock box activities, item processing, and
the provision of automated accounting services. Appli
cant is presently offering these services through its
subsidiary banks. Applicant proposes to continue to
offer them in the same manner, but to transfer the
personnel and equipment now providing these services
to CCS. Applicant’s banking subsidiaries will continue
to offer these services to their customers as part of a
total package of banking services. CCS will provide
the necessary computer services to the banks. To the
extent that CCS’s proposed activities amount to noth
ing more than a reorganization of existing operations
so that the new subsidiary will merely be providing
services for Applicant and its subsidiary banks, the
proposal is permissible under section 4(c)(1)(C) of the
Act and therefore requires no Board permission.
However, Applicant also proposes that CCS take
advantage of selected opportunities to provide data
processing services to the general public, an activity
which would require Board approval under section
4(c)(8). With respect to those activities for which
4(c)(8) approval is sought, the Board has determined
by regulation that “ storing and processing other bank
ing, financial, or related economic data, such as per
forming payroll, accounts receivable or payable, or
billing services” are permissible nonbank activities,
(12 C.F.R. § 225.4(a)(8)). This provision of Regulation
Y was adopted to enable bank holding companies to
process the kinds of data that banks have traditionally
processed in conducting their internal operations
and accommodating their customers. (12 C.F.R.
§ 225.123). The activities contemplated by this appli
cation fall squarely within the language of Regulation
Y and are clearly permissible for bank holding compa
nies. Protestants have not provided any evidence that
Applicant will go beyond the bounds of the Board’s
data processing regulation.4
Absence o f Adverse Effects
Protestants assert that approval of this application will
result in giving Applicant an unfair advantage over
independent data processing service providers be
cause the proposal gives rise to the likelihood of
“ voluntary tying” and “ cross subsidization.”
“ Voluntary tying” could result if Applicant’s cus
tomers believed that they could increase the likelihood
of being granted credit or some other service that is in
short supply, by purchasing other services from the
holding company. It is quite difficult to determine
whether voluntary tying actually occurs in a given
transaction. Indeed, Protestants have submitted no
evidence to demonstrate that any voluntary tying has
in fact been associated with Applicant’s operations in
the past. However, Applicant has volunteered to make
a number of commitments with respect to the activities
CCS will engage in on its own account, which are
designed to eliminate the possibility that voluntary
tying might be associated with this proposal.
Protestants also fear that Applicant will be able to
offer its data processing services at less than market
rates because these operations will be financially sup
ported by Applicant’s banking subsidiaries. Again,
Applicant has indicated its willingness to make certain
commitments which will eliminate the possibility that
it will be able to compete unfairly because of such
“ cross subsidization.” 5 The Board regards Appli
cant’s commitments regarding voluntary tying and
4. ADAPSO has sought to raise, with regard to this application,
many of the same concerns regarding permissibility that it raised
regarding the pending application of Citicorp to engage in data
processing activities through a subsidiary to be known Citishare
Corporation. Citicorp, 66 F e d e r a l R e se r v e B u l l e t in 585 (1980)
(hearing order). However, these applications are not comparable.
Citicorp proposed a range of data processing activities broader than
those contemplated by Conifer.
The Citicorp proceeding also involves the issue of the permissible
scope of data processing activities for bank holding companies. To the
extent that the Board should determine, as a result of that proceeding,
to modify its data processing regulation, the Board is empowered to
require Applicant to conform its activities to the amended regulation.
5. Cross subsidization is a somewhat amorphous concept. The
ability to offer services at lower rates could be attributable to a
number of factors, including economies of scale. Furthermore, it is
not clear that Protestant’s assertions would represent an adverse
effect even if true. See, e.g., A utom obile L easing as an A ctivity fo r
Bank Holding C om panies, 62 F e d e r a l R ese r v e B u l l e t i n 930, 939
(1976).
Legal Developments
cross subsidization as significant, and has relied on
them in acting upon this application. On the basis of
these commitments, the Board concludes that volun
tary tying and cross subsidization are unlikely to be
associated with this proposal.
Reasonably Expected Public Benefits
Approval of this application would allow Applicant to
create an entity within its organization which would
specialize in providing computer services to the hold
ing company, its subsidiaries, and the public; it also
would permit expansion of computer activities through
CCS’s own resources so that Applicant’s computer
operations would not be dependent on the resources
and budgetary restrictions of the affiliated banks
which have been providing data processing services.
CCS should be able to enhance its future prospects
through increased marketing of its services as a spe
cialized computer firm and be in a better position to
expand and provide additional services to the public.
Applicant proposes that CCS begin operations
de novo and take on activities started by its other
subsidiaries de novo. In the absence of evidence to the
contrary, the Board regards de novo expansion as
being procompetitive because it provides the market
with an additional source of competition.6 Further
more, Congress has authorized the Board to differenti
ate between nonbank activities commenced de novo
and activities commenced by the acquisition, in whole
or in part, of a going concern because Congress
regarded de novo entry as having beneficial effects on
competition.7 The Board thus concludes, based on
economic theory, congressional instruction, and its
own experience in administering the Act, that the
de novo character of the proposal represents a clear
public benefit.8The Board further finds that the public
benefits outlined above are sufficient to outweigh the
speculative adverse effects alleged by Protestants,
adverse effects that the Board has found are not likely
to occur. Indeed, the de novo nature of this proposal is
6. E.g., Virginia N ation al Bankshares, 66 F e d e r a l R e se r v e B u l
668, 671 (1980).
7. See S. Rep. No. 91-1084, 91st Cong., 2d Sess. 15, 16 (1970).
8. ADAPSO has pointed out, citing Independent Bankers A s s ’n o f
G eorgia v. B oard o f G overnors o f the F ederal R eserve System , 170
U.S. App. D.C. 278, 516 F.2d 1206, 1226 n. 86 (1975), that the
procompetitive nature of de novo entry may be contradicted by
evidence that the proposal will decrease competition, result in undue
concentration of resources, or cause other anticompetitive effects. No
evidence has been submitted to establish that approval of this applica
tion will decrease competition or result in undue concentration of
resources. Protestants have asserted that the possibility of voluntary
tying and cross subsidization may lead to unfair competition. These
assertions have been discussed above and do not undermine the
procompetitive nature of this proposal.
l e t in
449
alone sufficient to outweigh the speculative adverse
effects that Protestants have alleged.
Based upon the foregoing and other considerations
reflected in the record, the Board has determined that
the balance of the public interest factors that the Board
is required to consider under section 4(c)(8) is favor
able. Accordingly, the application is hereby approved.
This determination is subject to the conditions set
forth in section 225.4(c) of Regulation Y, and to the
Board’s authority to require such modification or
termination of the activities of a bank holding compa
ny as the Board finds necessary to assure compliance
with the provisions and purposes of the Act and the
Board’s regulations and orders issued thereunder, or
to prevent evasion thereof.
The transaction shall be made not later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Boston, pursuant to
delegated authority.
By order of the Board of Governors, effective
April 2, 1981.
Voting for this action: Chairman Volcker and Governors
Schultz, Partee, and Rice. Present and not voting: Governor
Wallich. Absent and not voting: Governors Teeters and
Gramley.
[s e a l ]
(Signed) J a m e s M c A f e e ,
Assistant Secretary o f the Board.
Deutsche Bank AG,
Frankfurt, Germany
Order Approving Proposed Bookkeeping and Data
Processing Activities and Denying Proposed
Finance, Loan Servicing, Leasing and Insurance
Activities
Deutsche Bank AG, Frankfurt, Federal Republic of
Germany, a foreign bank subject to certain provisions
of the Bank Holding Company Act of 1956 (“ Act” ),1
has applied for the Board’s approval, pursuant to
section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and
section 225.4(b)(2) of the Board’s Regulation Y
(12 C.F.R. § 225.4(b)(2)) to expand de novo the activi
ties of Applicant’s indirect subsidiary, Fiat Credit
Corporation (“ Corporation” ), Bannockburn, Illinois.
Corporation is the wholly-owned subsidiary of Fiat
1.
Applicant, a foreign bank operating a branch in New York, New
York, is subject to certain provisions of the Act by operation of
section 8(a) of the International Banking Act of 1978, (12 U.S.C.
§ 3106 (1978)).
450
Federal Reserve Bulletin □ May 1981
Credit Services, Inc. (“ Services” ), Deerfield, Illinois.
Applicant, through its subsidiary, Deutsche Bank
Compagnie Financiere Luxembourg, Luxembourg,
owns 50 percent of the voting shares of Services, while
the remaining shares are held by a subsidiary of Fiat
S.p.A. (“ Fiat” ), Turin, Italy. Corporation would en
gage de novo in providing bookkeeping, data process
ing and other services related to the administration of
receivables financed by Corporation for the subsidiar
ies of Fiat in the United States. In addition, Corpora
tion would engage de novo in a broad range of financ
ing activities; act as agent or broker for life, accident
and health and physical damage insurance related to
its extensions of credit; service loans and other exten
sions of credit; and engage in personal and real proper
ty leasing activities. These proposed activities have
been determined by the Board to be closely related to
banking (12 C.F.R. § 225.4(a)(1), (3), (6), (8) and (9).
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been duly published (45 Federal Register 66,208
(1980)). The time for filing comments and views has
expired, and the Board has considered the application
and all comments received in light of the public
interest factors set forth in section 4(c)(8) of the Act.
Applicant is the largest bank in Germany and the
third largest in the free world, with consolidated assets
equivalent to approximately $91.7 billion.2 Fiat is a
major diversified industrial corporation based in Italy,
with consolidated assets equivalent to approximately
$8.1 billion.3 Fiat manufactures automobiles, trucks,
tractors, agricultural equipment, aircraft parts, and
construction machinery; it also operates in other in
dustries, including steel and energy production, con
struction of civil engineering projects, and the provi
sion of tourist services. Fiat’s affiliates include Fiat
Motors of North America, Inc., Fiat-Allis Construc
tion Machinery, Inc., Hesston Corporation, and Iveco
Trucks of North America, Incorporated.
Applicant now engages, through Corporation, in
dealer inventory financing for dealers of affiliates of
Fiat in the United States, retail financing for purchas
ers and lessees of products from such dealers,4 and
acts as insurance agent or broker for credit life, and
credit accident and health insurance, and physical
damage insurance related to such financing. Corpora
tion engages in these finance and insurance activities
from its head office in Bannockburn, Illinois, and
2. Unless otherwise indicated, all banking data are as of Decem
ber 31, 1979.
3. Data as of December 31, 1978.
4. The B oard ap proved the A p p lica n t’s-acq uisition o f 50 p ercen t o f
C orporation and the financing a ctiv ities related to the le a se and sale o f
Fiat p rod ucts in 1979. D eutsche Bank A G , 65 F e d e r a l R ese r v e
B u l l e t i n 436 (1979).
regional offices located in Pittsburgh, Pennsylvania;
Dallas, Texas; Atlanta, Georgia; Walnut Creek, Cali
fornia; and Libertyville, Illinois. Since this application
represents de novo entry, no existing competition
would be eliminated between Corporation and the
subsidiaries of either Applicant or Fiat.5
Applicant’s proposed de novo data processing and
bookkeeping services for Fiat dealers would involve
an expansion of the joint venture’s current activities.
By engaging in these additional activities, Corporation
would provide to existing customers an incidental
additional service that would most likely not be pro
vided independently by Applicant or Fiat. Therefore,
the Board finds that consummation of that portion of
the proposal concerning data processing and book
keeping services would result in some public benefits.
Applicant’s proposed data processing and bookkeep
ing activities would provide dealers in Fiat products in
the United States with the capability to develop and
maintain detailed dealer and inventory data. These
data could be used to provide Fiat’s affiliates with
statistical and financial information for improved oper
ational efficiency and better customer service. Fur
thermore, there is no evidence in the record indicating
that consummation of the proposal regarding these
activities would result in any undue concentration of
resources, unfair competition, conflicts of interests,
unsound banking practices or other adverse effects.
Applicant’s proposed diversified finance company
activities, including financing, insurance, loan servic
ing and leasing activities to be offered to the general
public, represent, however, a departure from the nar
row scope of the joint venture’s current activities.
Applicant believes that expanding Corporation’s fi
nancing activities from those of a captive finance
company for Fiat dealers and their customers to those
of a diversified finance company offering its services
to the general public would enable Corporation to
achieve economies of scale and gains in efficiency; to
borrow money at more favorable rates; to compete on
5.
Applicant’s New York branch is engaged primarily in wholesale
banking and is not engaged in the proposed activities with the
exception of certain types of commercial lending. Applicant owns
indirectly through its subsidiary, German American Capital Corpora
tion, 20.1 percent of the shares of European-American Bancorp,
which controls European-American Bank and Trust Company
(“ EAB&T”), both of New York, New York. The Board noted in its
Order approving the acquisition of EAB&T (European-American
Bancorp, 63 F e d e r a l R eserve B u lle t in 595 (1977)) that Applicant
was not a bank holding company with respect to EAB&T. EAB&T
engages in commercial lending, personal property leasing, limited loan
servicing, and wholesale and retail sales financing in the New York
metropolitan banking market (which consists of New York City,
Nassau, Westchester, Putnam, and Rockland Counties and western
Suffolk County in New York; the northern two-thirds of Bergen
County and eastern Hudson County in New Jersey ; and southwestern
Fairfield County in Connecticut).
Legal Developments
a more equal footing with general finance companies;
and to become more financially sound.
While the introduction of services de novo by a joint
venture generally has pro-competitive effects where
both joint venturers are not likely entrants into the
market, the Board is concerned where a large banking
and a large commercial organization propose to engage
jointly in the provision of a wide range of activities. In
this respect, the Board believes that approval of
Applicant’s proposed financing activities would repre
sent a significant departure from past Board decisions
involving joint ventures. The Board has in the past
expressed its concern6 over the possible undesirable
effects associated with joint venture proposals,7 and
has generally approved joint venture applications only
if the joint venture involved a small co-venturer on a
narrowly construed activity, or both. In a substantial
number of cases the co-venturers were not likely to
engage in the activity. In the latter two respects,
Applicant’s original formation of Corporation is con
sistent with the Board’s former decisions regarding
joint ventures. However, the proposal to engage in a
broad range of activities such as general financing,
insurance, loan servicing, and leasing activities is
beyond the scope of the joint venture activities previ
ously approved by the Board. Furthermore, the Board
has also found that close working relationships be
tween large U.S. banking and non-banking organiza
tions could lead to an undue concentration of econom
ic resources, and that such possible adverse effects
would not be consistent with the purposes of the Bank
Holding Company Act, or in the public interest.8The
Board believes that a joint venture involving large
banking and commercial organizations engaged in a
broad range of financial activities in the United States
is similarly inconsistent with the purposes of the Bank
Holding Company Act.
In this instance, the record suggests that Applicant,
which is engaged in diversified finance company activ-
6. M aryland N ational C orporation (GECC and MN Leasing Cor
poration), 65 F e d e r a l R e se r v e B u l l e t i n 271 (1979); Bankshares o f
N ebraska, Inc., 64 F e d e r a l R e se r v e B u l l e t i n (1978); and The Fort
Worth N ational C orporation and Shawm ut A ssociation, Inc., 60
F e d e r a l R e se r v e B u l l e t in 382 (1974).
7. The undesirable long term effects that may flow from joint
ventures in general include the possibility that potential competition
may be eliminated; that a banking organization might favor its co
venturer and discriminate against a co-venturer’s rivals and other
applicants for credit; that cooperation between the joint venturers
may lead to adverse competitive effects in other markets; and that the
firm resulting from such a joint venture might be unduly strengthened
relative to its competitors.
8. Bank A m erica C orporation (Allstate International, S.A.), 60
F e d e r a l R e se r v e B u l l e t i n 517, 519 (1974); First N ational City
O verseas Investm ent C orporation (Companhia de Seguros Argos
Fluminense, S.A.), 60 F e d e r a l R e se r v e B u l l e t i n 521, 522 (1974).
451
ities in several countries, has ample financial re
sources and technical expertise to engage in these
activities and achieve on its own the benefits of de
novo entry into financing activities in the United
States. Moreover, it appears that Fiat’s contribution to
the proposed financing, insurance, loan servicing and
leasing activities would not be substantial. According
ly, the Board’s examination of Applicant’s proposal
finds that the benefits to be gained by the proposed
joint venture could be achieved, with the exception of
the data processing and bookkeeping activities dis
cussed above, without expansion of the joint venture.
Since the Board is of the opinion that the proposed
expansion of the joint venture between these co
venturers would have adverse effects and believes that
the same result can be achieved absent this expansion,
the Board finds no tangible net public benefits associ
ated with the proposed transaction and concludes that
the proposed expanded financing, insurance, loan ser
vicing and leasing activities should not be approved.
Based upon the foregoing and the other facts of
record it is the Board’s judgment that concerning
Applicant’s proposed data processing and bookkeep
ing activities the balance of the public interest factors
the Board is required to consider under section 4(c)(8)
of the Act is favorable. Accordingly, this portion of the
application is approved. This determination is subject
to the conditions set forth in section 225.4(c) of
Regulation Y and to the Board’s authority to require
such modification or termination of such activities as
the Board finds necessary to assure compliance with
the provisions and purposes of the Act and the Board’s
regulations and orders issued thereunder, or to pre
vent evasion thereof. The Board concludes that ap
proval of the balance of the application would not be in
the public interest and that portion of the application
concerning expanded finance activities, insurance,
loan servicing and leasing activities should be, and
hereby is, denied.
The activities approved by the Board shall be com
menced not later than three months after the effective
date of this Order, unless such period is extended for
good cause by the Board or by the Federal Reserve
Bank of New York pursuant to delegated authority.
By order of the Board of Governors, effective
April 29, 1981.
Voting for these actions: Governors Schultz, Partee, Tee
ters, Rice, and Gramley. Voting for approval o f the entire
application: Chairman Volcker and Governor Wallich, except
that Governor Wallich abstained from voting on the credit life
insurance and data processing activities.
[s e a l ]
(Signed) J a m e s M c A f e e ,
Assistant Secretary o f the Board.
452
Federal Reserve Bulletin □ May 1981
The Hongkong and Shanghai Banking
Corporation,
Hong Kong, B.C.C.
Kellett, N.V.,
Curacao, Netherlands Antilles
HSBC Holdings, B.V.,
Amsterdam, The Netherlands
Marine Midland Banks, Inc.,
Buffalo, New York
Order Approving Acquisition o f Marmid Life
Insurance Company
The Hongkong and Shanghai Banking Corporation,
Hong Kong, B.C.C. (“ HSBC” ); Kellett, N.V., Cura
cao, Netherlands Antilles; HSBC Holdings, B.V.,
Amsterdam, The Netherlands (“ Holdings” ); and Ma
rine Midland Banks, Inc., Buffalo, New York (“ Ma
rine” ) (collectively, the “ Applicants” ), bank holding
companies within the meaning of the Bank Holding
Company Act, have applied for the Board’s approval
under section 4(c)(8) of the Act (12 U.S.C.
§ 225.4(b)(2)) of the Board’s Regulation Y (12 C.F.R.
§ 225.4(b)(2)) to acquire all of the voting shares of
Marmid Life Insurance Company, Phoenix, Arizona
(“ Marmid” ), a proposed de novo company, and there
by to engage in underwriting, as reinsurer, credit life
and credit accident and health insurance directly relat
ed to extensions of credit by Applicants’ subsidiary,
Marine Midland Bank, N.A., Buffalo, New York
(“ Bank” ), in New York state, and credit life insurance
related to extensions of credit by Bank in Pennsylva
nia. Such activity has been determined by the Board
to be closely related to banking (12 C.F.R.
§ 225.4(a)(10)).
Notice of the applications, affording opportunity for
interested persons to submit comments and views on
the public interest factors, has been duly published (46
Federal Register 11601). The time for filing comments
and views has expired and the Board has considered
all comments received in light of the public interest
factors set forth in section 4(c)(8) of the Act.
HSBC, the largest bank incorporated in Hong Kong
and the 41st largest banking organization in the world,
with consolidated assets of approximately $37.2 billion
(as of December 31, 1979), engages worldwide in an
extensive range of banking and financially related
services. Kellett and Holdings are intermediate shell
companies formed to facilitate the acquisition by
HSBC of shares of Marine.1Marine, which does not
engage directly in any activity except holding shares of
its subsidiaries, is the 12th largest commercial banking
organization in the United States. Bank is the eighth
largest commercial banking organization in New York
state with consolidated deposits of $14.2 billion, as of
December 31, 1980.
Marmid will engage in the activity of underwriting,
as reinsurer, credit life and credit accident and health
insurance directly related to extensions of credit by
Bank. Applicants do not currently engage in insurance
underwriting activities in the United States, and the
proposed affiliation between Applicants and Marmid,
a de novo company, would have no adverse effects on
competition in any relevant area.
In adding credit insurance underwriting to the list of
permissible activities for bank holding companies, the
Board stated that, “ To assure that engaging in the
underwriting of credit life and credit accident and
health insurance can reasonably be expected to be in
the public interest, the Board will only approve appli
cations in which an applicant demonstrates that ap
proval will benefit the consumer or result in other
public benefits. Normally such a showing would be
made by a projected reduction in rates or an increase
in policy benefits due to bank holding company per
formance of this service.” (12 C.F.R. § 225.4(a)(10)
fn. 8). With respect to credit life insurance, Applicant
has stated that the proposed reinsurance subsidiary
and the direct insurer, which issues the credit life and
credit accident and health insurance policies made
available by Bank, will reduce credit life insurance
premium rates by 1.3 percent below the state prima
facie rates in New York and Pennsylvania. These
reductions appear to be sufficient to assure public
benefits that would warrant approval of the applica
tions.
With respect to reinsurance of credit accident and
health insurance, which will be offered only in New
York, Applicants have committed to provide a 2.5
percent reduction from the New York prima facie rate.
In the past, the Board generally has determined that,
in order to provide meaningful benefits to the public,
and in the absence of other increases in policy bene
fits, a bank holding company should commit to reduce
its premium rate for credit accident and health insur
ance by five percent below a state’s prima facie rate.
At the time the Board added the activity of underwrit
ing credit-related insurance to the list of permissible
activities and for some time thereafter, most states had
1.
By Order dated March 16, 1979, the Board approved the
applications of HSBC, Kellett and Holdings to become bank holding
companies through acquisition of Marine.
Legal Developments
established a premium rate structure based on a
benchmark loss ratio of 50 percent, (that is, 50 percent
of earned premiums paid out in claims), and it is in
light of such a rate structure that bank holding compa
nies generally have offered a five percent rate reduc
tion on credit disability premiums. However, in 1980,
New York established new credit insurance rates that
set benchmark loss ratios of between 73 and 78 percent
for credit accident and health insurance premiums.
Thus, a bank holding company that underwrites credit
disability insurance in New York, experiences a great
er reduction in its margin of premiums over claims
than if it reinsured the same insurance in another state.
The subject proposal, accordingly, would result in the
same percentage reduction in margin to the holding
company as would a larger rate reduction in a state
with a lower benchmark loss ratio. In light of these
facts, the Board is of the view that approval of
proposals permitting a reduction of 2.5 percent below
the prima facie rate in New York will enable bank
holding companies to continue to offer reinsurance
services in New York for credit disability insurance at
a rate below that which would ordinarily be charged to
the customer. Thus, the Board finds that the proposal
to underwrite credit accident and health insurance in
New York will produce public benefits that would be
consistent with approval of the application.
It is the Board’s judgment that the provision of
credit life and credit accident and health insurance at
reduced premiums is in the public interest. There is no
evidence in the record indicating that consummation
of the proposal would result in any undue concentra
tion of resources, adverse effects on competition,
conflicts of interests, unsound banking practices, or
other effects that would be adverse to the public
interest.
Based upon the foregoing and other considerations
reflected in the record, including Applicant’s commit
ment to maintain on a continuing basis the public
benefits that the Board has found to be reasonably
expected to result from this proposal, and upon which
the approval of this proposal is based, the Board has
determined that the balance of the public interest
factors the Board is required to consider under
§ 4(c)(8) is favorable. Accordingly, the application is
hereby approved. This determination is subject to the
conditions set forth in § 225.4(c) of Regulation Y and
to the Board’s authority to require such modification
or termination of the activities of a holding company or
any of its subsidiaries as the Board finds necessary to
assure compliance with the provisions and purposes of
the Act and the Board’s regulations and orders issued
thereunder, or to prevent evasion thereof.
The transaction shall be made not later than three
months after the effective date of this Order, unless
453
such period is extended for good cause by the Board or
by the Federal Reserve Bank of New York, pursuant
to delegated authority.
By order of the Board of Governors, effective
April 27, 1981.
Voting for this action: Chairman Volcker and Governors
Schultz, Partee, Teeters, and Gramley. Present and abstain
ing: Governor Wallich. Absent and not voting: Governor
Rice.
[s e a l ]
(Signed) J a m e s M c A f e e ,
Assistant Secretary o f the Board.
Societe Generale,
Paris, France
Order Approving Finance and Leasing Activities
Societe Generale, Paris, France, a foreign bank sub
ject to certain provisions of the Bank Holding Compa
ny Act (the “ Act” ),1 has applied for the Board’s
approval under section 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)) and section 225.4(b)(2) of the Board’s
Regulation Y (12 C.F.R. § 225.4(b)(2)), to engage de
novo through its subsidiary, Sogelease Corp. (“ Sogelease” ), New York, New York, in commercial finance
and leasing activities. Such activities include making
and acquiring, for its own account or for the account of
others, commercial loans and other extensions of
credit; making leases of real and personal property,
where such leasing is in accordance with section
225.4(a)(6) of Regulation Y (12 C.F.R. § 225.4(a)(6));
and acting as agent, broker, or adviser with respect to
such extensions of credit and leasing. These activities
have been determined by the Board to be closely
related to banking (12 C.F.R. § 225.4(a)(1) and (6)).
Notice of the application, affording opportunity for
interested persons to submit comments, has been duly
published (46 Federal Register 11707 (1981)). The time
for filing comments has expired, and the Board has
considered the application and all comments in light of
the public interest factors set forth in section 4(c)(8) of
the Act.
The majority of the outstanding voting shares of
Societe Generale are owned by the French govern
ment. Societe Generale is the fourth largest bank in
France, with consolidated assets of approximately $84
billion.2Societe Generale engages in general securities
1. Societe Generale, a foreign bank operating a branch in New
York, New York, is subject to certain provisions of the Act by
operation of section 8(a) of the International Banking Act of 1978
(12 U.S.C. § 3106(a)) (the “ IBA” ).
2. Banking data are as of December 31, 1979.
454
Federal Reserve Bulletin □ May 1981
activities in the United States through its subsidiary,
Hudson Securities, Inc., New York, New York.3
Sogelease would provide its services throughout the
world, and would become part of Societe Generale’s
worldwide leasing network.
To approve this application, the Board must find
that Societe Generale’s performance of the activities
through Sogelease “ can reasonably be expected to
produce benefits to the public, such as greater conve
nience, increased competition, or gains in efficiency,
that outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair com
petition, conflicts of interest, or unsound banking
practices.” The Board views de novo entry as procompetitive and a positive public benefit since such
entry provides an additional source of competition in a
market.4 Accordingly, the Board views the entry of
Sogelease as a competitor into the commercial finance
and leasing markets it would serve as a public benefit.
Societe Generale’s initial investment in Sogelease
($5.0 million) represents a minimal percentage of So
ciete Generale’s consolidated assets, and it appears
that the proposal would have no significant effect upon
its financial condition. There is no evidence that the
conduct of these activities would result in undue
concentration of resources, decreased or unfair com
petition, conflicts of interests, unsound banking prac
tices, or other adverse effects on the public interest.
Based upon the facts of record, the Board has
determined that the balance of the public interest
factors the Board is required to consider under section
4(c)(8) is favorable. Accordingly, the application is
hereby approved. This determination is subject to the
conditions set forth in section 225.4(c) of Regulation Y
and to the Board’s authority to require such modifica
tion or termination of the activities of a holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance -with the provisions
and purposes of the Act and the Board’s regulations
and orders issued thereunder, or to prevent evasion
thereof.
The activities shall be commenced not later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of New York,
pursuant to delegated authority.
3. A foreign bank is required to cease impermissible nonbanking
activities in the United States within two years after establishing a
U.S. branch, agency, or commercial lending company. The Board has
advised Societe Generale that, in the Board’s view, Societe Generale
must divest Hudson Securities, Inc., but has extended the time for
divestiture from January 2, 1981, until January 2, 1982.
4. E.g. Virginia N ational Bancshares, Inc., 66 F e d e r a l R eserve
B u lle t in 668, 671 (1980). The United States Court of Appeals for the
District of Columbia Circuit affirmed the Board’s conclusions regard
ing the procompetitive nature of de novo entry in C onnecticut Bankers
A s s ’n v. Board o f Governors, No. 79-1554 (D.C. Cir. Feb. 7, 1980).
By order of the Board of Governors, effective
April 28, 1981.
Voting for this action: Chairman Volcker and Governors
Schultz, Wallich, Partee, Teeters, and Gramley. Absent and
not voting: Governor Rice.
[s e a l ]
(Signed) J a m e s M c A f e e ,
Assistant Secretary o f the Board.
Federal R eserve A c t O rd er
Issu e d b y th e B o a r d o f G o v e r n o r s
Order Under Section 25(a) o f
Federal Reserve A c t
Republic International Bank
of New York (California),
Los Angeles, California
Order Denying Additional Activities Under Section
25(a) o f the Federal Reserve Act
Republic International Bank of New York (California)
(“ RIBNY” ), Los Angeles, California, has applied for
the Board’s consent under section 25(a) of the Federal
Reserve Act (12 U.S.C. § 616) (the “ Edge Act” )
and section 211.4(e)(5) of the Board’s Regulation K
(12 C.F.R. § 211.4(e)(5)) to engage in the activities of
(1) maintaining an inventory of gold coin and bullion
for its parent, Republic National Bank of New York
(“ Bank” ), New York, New York, and receiving and
making deliveries of gold coin and bullion upon the
instruction of Bank; and (2) buying and selling gold
and silver coin and bullion on a spot, forward, and
futures basis.
RIBNY is a corporation organized under section
25(a) of the Federal Reserve Act (an “ Edge Corpora
tion” ) and is a wholly-owned subsidiary of Bank.
Bank, a wholly-owned subsidiary of Republic New
York Corporation, New York, New York, had assets
on December 31, 1980, of $6.2 billion.
Edge Corporations are organized for the purpose of
engaging in international or foreign banking or other
international or foreign financial operations. The Edge
Act (12 U.S.C § 616) provides that an Edge Corpora
tion may engage in the United States only in those
activities that the Board determines are incidental to
the Edge Corporation’s international or foreign busi
ness. In amending its Regulation K in June 1979, the
Board included a list of general activities that it
determined to be incidental to an Edge Corporation’s
international or foreign business. The Board’s regula
tion provides, however, that an Edge Corporation that
Legal Developments
is of the opinion that other activities in the United
States would be incidental to its international or for
eign business may apply to the Board for such a
determination. As in the case of an application by a
bank holding company to engage in a new activity
under section 4(c)(8) of the Bank Holding Company
Act (12 U.S.C. § 1843(c)(8)), the Board may either
deny the application or, if it determines to approve the
application, may do so by issuing an order permitting
the specific proposal or by undertaking to revise its
regulation to indicate the general permissibility of the
activity in the United States.
RIBNY asserts that approval of its request for
permission to maintain inventories of gold for Bank
would not be inconsistent with the policy of preventing
Edge Corporations from competing with U.S. banks
for domestic banking business. It appears, however,
that RIBNY would be instrumental in furthering
Bank’s domestic gold business in California. The
Board finds that the activity has no relationship to
RIBNY’s international or foreign business, and that
the request should be denied with respect to this
activity.
In contending that it should be permitted to buy and
sell gold coin and bullion in the United States, RIBNY
notes that the Edge Act (12 U.S.C. § 615(a)) provides
that an Edge Corporation has the power, subject to
such rules and regulations as the Board may prescribe,
to exercise various banking powers, including pur
chasing and selling “ coin, bullion, and exchange.”
RIBNY relies on this language in support of its conten
tion that it may engage in the proposed activities in the
United States.
The Board believes, however, that the banking
powers authorized for Edge Corporations are gov
erned by the provision of the Edge Act limiting an
Edge Corporation’s U.S. activities to those incidental
to its international or foreign business. The Board has
previously considered the matter of an Edge Corpora
tion buying and selling gold in the United States, and
in that instance indicated that such activity must be
incidental to an Edge Corporation’s international or
foreign business.1Since RIBNY proposes to purchase
1.
See Board letter of December 2, 1968, to American International
Bank, New York, New York. The Board ruled that American
International Bank could purchase gold for resale to domestic users so
long as no more than 15 percent of its gold purchases would be from
domestic sources. That ruling was limited to the specific facts in that
case, and did not authorize Edge Corporations generally to engage in
the activities in the United States.
455
gold in foreign and domestic markets and to sell gold
primarily to domestic customers, the Board does not
regard this proposed activity as incidental to any
international or foreign business of RIBNY.
RIBNY contends that purchasing and selling gold
and silver should be regarded as incidental to interna
tional or foreign business. It asserts that these activi
ties are functionally similar to the activities of buying
and selling foreign exchange, which the Board has
determined are incidental to international or foreign
business in section 211.4(e)(4) (xiii) of Regulation K
(12 C.F.R. § 211.4(e) (4) (xiii).) RIBNY also contends
that the activities of Republic New York Corporation,
Bank, and RIBNY in gold and silver coin and bullion
are unique among U.S. banking organizations, and,
that the organization’s expertise in these activities is
incidental to RIBNY’s international and foreign busi
ness.2 These views assume, however, that gold and
silver activities are inherently international in charac
ter. The Board does not believe that purchases and
sales of gold and silver are sufficiently different from
other commodities transactions to warrant such a
conclusion.
Based upon the foregoing and other considerations
reflected in the record, the Board concludes that the
proposed activities would not be incidental to
RIBNY’s international or foreign business, and would
not be consistent with the purposes of the Federal
Reserve Act; therefore, the application is denied.
By order of the Board of Governors, effective
April 27, 1981.
Voting for this action: Chairman Volcker and Governors
Schultz, Wallich, Partee, Teeters, and Gramley. Absent and
not voting: Governor Rice.
[s e a l ]
(Signed) J a m e s M c A f e e ,
Assistant Secretary o f the Board.
2.
The Board recognized the experience and competence of Repub
lic New York Corporation in the coin and bullion field when it
approved the application under section 4(c)(8) of the Bank Holding
Company Act of Republic New York Corporation to engage through a
subsidiary in the activity of acting as a futures commision merchant to
execute futures contracts covering gold and silver coin and bullion.
Republic N ew York C orporation, 63 F e d e r a l R e se r v e B u l l e t in
951, 953 (1977). The Board’s action on this application has no effect on
the approval previously granted under the Bank Holding Company
Act.
456
Federal Reserve Bulletin □ May 1981
O r d e r s A p p r o v in g A p p l ic a t io n s U n d e r
Ba n k M erger A ct
th e
Ba n
k
H
o l d in g
Com
pany
A
ct
and
By the Board o f Governors
During April 1981, the Board of Governors approved the applications listed below. Copies are available upon
request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3
First International Bancshares, Inc.,
Dallas, Texas
The Fischer Corporation,
Lewiston, Minnesota
Griswold State Bancshares, Inc.,
Griswold, Iowa
Board action
(effective
date)
Bank(s)
Applicant
April 14, 1981
Greenspoint Bank,
Houston, Texas
First State Bank of Wykoff,
Wykoff, Minnesota
Lary Insurance Agency,
Griswold, Iowa
April 14, 1981
April 21, 1981
By Federal R eserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders
are available upon request to the Reserve Banks.
Section 3
Applicant
Alsip Bancorporation, Inc.,
Alsip, Illinois
B & M Bancshares, Inc.,
Fairmont, Minnesota
Brighton Bancshares Corporation,
Brighton, Tennessee
Cardinal Bancorp,
South Sioux City, Nebraska
Centinel Bank Shares, Inc.,
Taos, New Mexico
Chisholm Trail Financial Corp.,
Wichita, Kansas
Colbert Bancshares, Inc.
Colbert, Oklahoma
Colonial Bancorporation, Inc.,
Thiensville, Wisconsin
Commerce BancShares of Wyo
ming, Inc.,
Sheridan, Wyoming
Bank(s)
Alsip Bank and Trust,
Alsip, Illinois
State Bank of Fairmont,
Fairmont, Minnesota
Brighton Bank,
Brighton, Tennessee
Dakota County State Bank,
South Sioux City, Nebraska
Centinel Bank of Taos,
Taos, New Mexico
Chisholm Trail State Bank,
Wichita, Kansas
The First Nation Bank of Colbert
Colbert, Oklahoma
Colonial Bank,
Thiensville, Wisconsin
Richfield State Bank,
Richfield, Wisconsin
Security Bank of Gillette,
Gillette, Wyoming
Reserve
Bank
Effective
date
Chicago
April 22, 1981
Minneapolis
April 14, 1981
St. Louis
April 23, 1981
Kansas City
April 10, 1981
Kansas City
March 26, 1981
Kansas City
March 26, 1981
Dallas
April 17, 1981
Chicago
April 22, 1981
Kansas City
April 10, 1981
Legal Developments
457
Section 3—Continued
A ..
Apphcant
Commercial Bancshares, Inc.
Champaign, Illinois
De Witt Bancorp, Inc.,
De Witt, Iowa
Faribault Bankshares, Inc.,
Faribault, Minnesota
First American Bancshares, Inc.,
Kingston, Missouri
First Bancorp of N.H., Inc.,
Manchester, New Hampshire
First Bancshares of Louisiana,
Inc.,
Baton Rouge, Louisiana
First Banc of Indiana Holding
Company, Inc.,
Madison, Indiana
First Bellevue Bancshares Co.,
Bellevue, Nebraska
First City Holding Corporation,
Oklahoma City, Oklahoma
First Jersey National Corporation,
Jersey City, New Jersey
First Marlow Bancshares, Inc.,
Marlow, Oklahoma
First Nocona Bancshares, Inc.,
Nocona, Texas
Freeport Bancshares, Inc.,
Freeport, Illinois
Gebsco, Inc.,
Cochrane, Wisconsin
Guthrie County Investment Co.,
Guthrie Center, Iowa
Hull State Bancshares, Inc.,
Hull, Texas
Intercounty Bancshares, Inc.,
Wilmington, Ohio
Live Oak Bancshares Corporation,
George West, Texas
McCamey Bancshares, Inc.,
McCamey, Texas
Madison Lake Bancorporation,
Inc.,
Madison Lake, Minnesota
n w x
Bank(s)
The Commercial Bank of
Champaign,
Champaign, Illinois
De Witt Bank & Trust Co.,
De Witt, Iowa
The State Bank of Faribault,
Faribault, Minnesota
American Bank of Union Star,
Union Star, Missouri
White Mountain National Bank,
North Conway, New Hampshire
Louisiana National Bank of
Baton Rouge,
Baton Route, Louisiana
The First Bank of Madison,
Madison, Indiana
First National Bank of Bellevue,
Bellevue, Nebraska
City National Bank and Trust
Company,
Oklahoma City, Oklahoma
Perth Amboy National Bank,
Perth Amboy, New Jersey
The First National Bank in
Marlow,
Marlow, Oklahoma
First National Bank of Nocona,
Nocona, Texas
Midwest Bank of Freeport
Freeport, Illinois
Cochrane State Bank,
Cochrane, Wisconsin
Guthrie County State Bank,
Guthrie Center, Iowa
Hull State Bank,
Hull, Texas
Clinton County National Bank and
Trust Company,
Wilmington, Ohio
First National Bank in George
West,
George West, Texas
Security State Bank,
McCamey, Texas
Peoples State Bank of Madison
Lake,
Madison Lake, Minnesota
Reserve
Bank
Effective
date
Chicago
April 10, 1981
Chicago
April 17, 1981
Minneapolis
April 23, 1981
Kansas City
April 10, 1981
Boston
April 22, 1981
Atlanta
April 9, 1981
St. Louis
April 9, 1981
Kansas City
April 10, 1981
Kansas City
March 27, 198
New York
April 2, 1981
Kansas City
April 10, 1981
Dallas
April 1, 1981
Chicago
April 21, 1981
Minneapolis
April 10, 1981
Chicago
April 10, 1981
Dallas
April 9, 1981
Cleveland
April 17, 1981
Dallas
April 21, 1981
Dallas
April 10, 1981
Minneapolis
April 9, 1981
458
Federal Reserve Bulletin □ May 1981
Section 3—Continued
Applicant
Bank(s)
Mark Twain Bancshares, Inc.,
St. Louis, Missouri
Montgomery County Financial
Corporation,
Independence, Kansas
Oak Hill Financial, Inc.,
Oak Hill, Ohio
Ohio Citizens Bancorp, Inc.,
Toledo, Ohio
Old Kent Financial Corporation,
Grand Rapids, Michigan
Pawnee Bancshares, Inc.,
Pawnee, Oklahoma
Pedernales Investment Corpora
tion,
Dallas, Texas
Persons Banking Company, Inc.,
Forsyth, Georgia
Pikes Peak National Company,
Colorado Springs, Colorado
Southern Bancshares, Inc.,
Douglas, Georgia
South First National Corporation,
Ocean Springs, Mississippi
South Texas Bancshares, Inc.,
Beeville, Texas
Welcome Bancshares, Inc.,
Welcome, Minnesota
Reserve
Bank
Effective
date
Mid-Continent Bank of Kansas
City,
Kansas City, Missouri
The Independence State Bank of
Independence, Kansas,
Independence, Kansas
The Oak Hill Savings Bank Com
pany,
Oak Hill, Ohio
The Farmers & Merchants Deposit
Company,
Swanton, Ohio
Gaylord State Bank,
Gaylord, Michigan
Pawnee National Bank,
Pawnee, Oklahoma
Pedernales-Blanco Corporation,
Dallas, Texas
St. Louis
April 14, 1981
Kansas City
April 10, 1981
Cleveland
April 17, 1981
Cleveland
April 23, 1981
Chicago
March 27, 1981
Kansas City
March 27, 1981
Dallas
April 23, 1981
The Bank of Perry,
Perry, Georgia
The Pikes Peak National Bank of
Colorado Springs,
Colorado Springs, Colorado
The Farmers Bank,
Douglas, Georgia,
The Farmers Bank,
Locust Grove, Georgia
First National Bank of the South,
Ocean Springs, Mississippi
The Commercial National Bank of
Beeville,
Beeville, Texas
First State Bank of Mathis,
Mathis, Texas
Welcome State Bank,
Welcome, Minnesota
Atlanta
April 17, 1981
Kansas City
April 3, 1981
Atlanta
March 31, 1981
Atlanta
March 30, 1981
Dallas
April 24, 1981
Minneapolis
April 6, 1981
Sections 3 and 4
Applicant
Delhi Bancshares, Inc.,
Delhi, Iowa
Bank(s)
Delhi Savings Bank
Delhi, Iowa
Delhi Insurance
Agency
Delhi, Iowa
Nonbanking
company
(or activity)
to engage in general insurance activities
Reserve
Bank
Chicago
Effective
date
April 21, 1981
Legal Developments
459
Sections 3 and 4—Continued
Applicant
Valley National Corpo
ration,
Phoenix, Arizona
Bank(s)
The Valley National
Bank of Arizona,
Phoenix, Arizona
Concho Investment
Corporation
Phoenix, Arizona
to engage in the sale of
credit life insurance
and credit accident
and health insurance
directly related to ex
tensions of credit.
Reserve
Bank
San Francisco
Effective
date
April 1, 1981
Section 4
.
t
Applicant
Nonbanking
company
(or activity)
Irwin Union Corporation,
Columbus, Indiana
Orders A
pproved
Effectiye
,
ae
Inland Mortgage Company, Inc.,
Indianapolis, Indiana
Under Ba n
k
M
erger
A
April 17, 1981
ct
By the Board o f Governors
Bank(s)
Applicant
First Virginia Bank-Colonial,
Richmond, Virginia
P e n d in g C a s e s In v o l v in g
The Peoples Bank of Hanover
County,
Mechanicsville, Virginia
th e
B
oard of
Richmond
Effective
date
April 28, 1981
G overnors*
*This list o f pending cases does not include suits
against the Federal Reserve Banks in which the Board
o f Governors is not named a party.
Wilshire Oil Company o f Texas v. Board o f Gover
nors, et al., filed April 1981, U.S.C.A. for the Third
Circuit.
People o f the State o f Arkansas v. Board o f Gover
nors, et al., filed March 1981, U.S.C.A. for the
Western District of Arkansas.
First Bank & Trust Company v. Board o f Governors,
filed February 1981, U.S.D.C. for the Eastern Dis
trict of Kentucky.
Ellis E. St. Rose & James H. Sibbet v. Board of
Governors, filed February 1981, U.S.D.C. for the
District of Columbia.
Reserve
Bank
Option Advisory Service, Inc. v. Board o f Governors,
et al., filed February 1981, U.S.C.A. for the Second
Circuit.
9 to 5 Organization for Women Office Workers v.
Board o f Governors, filed December 1980,
U.S.D.C. for the District of Massachusetts.
Securities Industry Association v. Board o f Gover
nors, et al., filed October 1980, U.S.D.C. for the
District of Columbia.
Securities Industry Association v. Board o f Gover
nors, et al., filed October 1980, U.S.C.A. for the
District of Columbia.
A. G. Becker, Inc. v. Board o f Governors, et al., filed
October 1980, U.S.D.C. for the District of Colum
bia.
460
Federal Reserve Bulletin □ May 1981
A. G. Becker, Inc. v. Board o f Governors, et al., filed
October 1980, U.S.C.A. for the District of Colum
bia.
Independent Insurance Agents o f America and Inde
pendent Insurance Agents o f Missouri v. Board of
Governors, filed September 1980, U.S.C.A. for the
Eighth Circuit.
Independent Insurance Agents o f America and Inde
pendent Insurance Agents o f Virginia v. Board o f
Governors, filed September 1980, U.S.C.A. for the
Fourth Circuit.
Nebraska Bankers Association, et al. v. Board of
Governors, et al., filed September 1980, U.S.D.C.
for the District of Nebraska.
Republic o f Texas Corporation v. Board o f Governors,
filed September 1980, U.S.C.A. for the Fifth Cir
cuit.
A. G. Becker, Inc. v. Board o f Governors, et al., filed
August 1980, U.S.D.C. for the District of Columbia.
Otero Savings and Loan Association v. Board of
Governors, filed August 1980, U.S.D.C. for the
District of Columbia.
Edwin F. Gordon v. Board o f Governors, et al., filed
August 1980, U.S.C.A. for the Fifth Circuit.
U.S. League o f Savings Associations v. Depository
Institutions Deregulation Committee, et al., filed
June 1980, U.S.D.C. for the District of Columbia.
Berkovitz, et al. v. Government o f Iran, et al., filed
June 1980, U.S.D.C. for the Northern District of
California.
Mercantile Texas Corporation v. Board o f Governors,
filed May 1980, U.S.C.A. for the Fifth Circuit.
Corbin, Trustee v. United States, filed May 1980,
United States Court of Claims.
Louis J. Roussel v. Board o f Governors, filed April
1980, U.S.D.C. for the District of Columbia.
Ulyssess S. Crockett v. United States, et al., filed
April 1980, U.S.D.C. for the Eastern District of
North Carolina.
County National Bancorporation and TGB Co. v.
Board o f Governors, filed September 1979,
U.S.C.A. for the Eighth Circuit.
Gregory v. Board o f Governors, filed July 1979,
U.S.D.C. for the District of Columbia.
Donald W. Riegel, Jr. v. Federal Open Market Com
mittee, filed July 1979, U.S.D.C. for the District of
Columbia.
Security Bancorp and Security National Bank v.
Board o f Governors, filed March 1978, U.S.C.A. for
the Ninth Circuit.
Roberts Farms, Inc. v. Comptroller o f the Currency,
et al., filed November 1975, U.S.D.C. for the South
ern District of California.
David Merrill, et al. v. Federal Open Market Commit
tee, filed May 1975, U.S.D.C. for the District of
Columbia.
A1
Financial and Business Statistics
Co ntents
D o m e s tic F in a n c ia l S ta tis tic s
Weekly R
A3 Monetary aggregates and interest rates
A4 Reserves of depository institutions, reserve
bank credit
A5 Reserves and borrowings of depository
institutions
A6 Federal funds and repurchase agreements of
large member banks
Assets and liabilities
A18 All reporting banks
A19 Banks with assets of $ 1 billion or more
A20 Banks in New York City
A21 Balance sheet memoranda
A22 Commercial and industrial loans
e p o r t in g
C
o m m e r c ia l
Banks
A23 Gross demand deposits of individuals,
partnerships, and corporations
P
o l ic y
In st r u m
ents
A7 Federal Reserve Bank interest rates
A8 Depository institutions reserve requirements
A9 Maximum interest rates payable on time and
savings deposits at federally insured institutions
A 10 Federal Reserve open market transactions
Federal R
eserve
Banks
F in a n c ia l M
arkets
A23 Commercial paper and bankers dollar
acceptances outstanding
A24 Prime rate charged by banks on short-term
business loans
A24 Terms of lending at commercial banks
A25 Interest rates in money and capital markets
A26 Stock market—Selected statistics
A ll Condition and Federal Reserve note statements
A 12 Maturity distribution of loan and security
holdings
A27 Savings institutions—Selected assets and
liabilities
M
F e d eral F in a n c e
onetary and
C r e d it A
ggregates
A12 Bank debits and deposit turnover
A13 Money stock measures and components
A14 Aggregate reserves of depository institutions
and member bank deposits
A 15 Loans and securities of all commercial banks
C o m m e r c ia l B a n k s
A 16 Major nondeposit funds
A 17 Assets and liabilities, last Wednesday-of-month
series
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 marketable securities—
Ownership, by maturity
A32 U.S. government securities dealers—
Transactions, positions, and financing
A33 Federal and federally sponsored credit
agencies—Debt outstanding
A2
Federal Reserve Bulletin □ May 1981
S e c u r it ie s M a r k e t s
C o r p o r a t e F in a n c e
In te r n a tio n a l S ta tis tic s
and
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
A36 Total nonfarm business expenditures on new
plant and equipment
A37 Domestic finance companies—Assets and
liabilities; business credit
R eal E
A38 Mortgage markets
A39 Mortgage debt outstanding
ent
of
F
R eported
by
Ban
k s in
th e
U n it e d S
tates
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks’ own claims on foreigners
Banks’ own and domestic customers’ claims on
foreigners
A60 Banks’ own claims on unaffiliated foreigners
A61 Claims on foreign countries—Combined
domestic offices and foreign branches
C r e d it
A40 Total outstanding and net change
A41 Extensions and liquidations
Flow
U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign branches of U.S. banks—Balance sheet
data
A56 Selected U.S. liabilities to foreign official
institutions
A56
A57
A59
A60
state
C o nsu m er In sta llm
A52
A53
A53
A54
unds
A42 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets
S e c u r it ie s H
o l d in g s a n d
Tr a n s a c t io n s
A62 Marketable U.S. Treasury bonds and notes—
Foreign holdings and transactions
A62 Foreign official assets held at Federal Reserve
Banks
A63 Foreign transactions in securities
R eported b y N
E n t e r p r is e s i n
B u s in e s s
U n it e d S t a t e s
o n b a n k in g
th e
D o m e s tic N o n fin a n c ia l S ta tis tic s
A44 Nonfinancial business activity—Selected
measures
A44 Output, capacity, and capacity utilization
A45 Labor force, employment, and unemployment
A46 Industrial production—Indexes and gross value
A48 Housing and construction
A49 Consumer and producer prices
A50 Gross national product and income
A51 Personal income and saving
A64 Liabilities to unaffiliated foreigners
A65 Claims on unaffiliated foreigners
In terest
and
Exchange R
ates
A66 Discount rates of foreign central banks
A66 Foreign short-term interest rates
A66 Foreign exchange rates
A67 G u id e to T a b u la r P r e s e n ta tio n ,
S ta tis tic a l R e le a s e s , a n d S p e c ia l T a b les
Domestic Financial Statistics
A3
1.10 MONETARY AGGREGATES AND INTEREST RATES*
1980
1980
1981
1981
Item
02
Q3
Q4
Ql
Nov.
D ec.
Jan.
Feb.
Mar.
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent) 1
1
2
3
4
Reserves o f depository institutions
T o t a l...............................................................................................................
Required........................................................................................................
Nonborrowed...............................................................................................
Monetary base2 ...........................................................................................
.4
.7
7.4
5.6
6.7
5.8
12.4
9.5
16.5
15.2
7.2
10.6
5
6
7
8
9
Concepts o f money and liquid assets3
M - 1 A .............................................................................................................
M -1B ...............................................................................................................
M - 2 .................................................................................................................
M - 3 .................................................................................................................
L ........................................................................................................................
- 4 .8
- 2 .9
5.4
6.0
6.8
11.5
13.9
15.7
13.1
9.9
8.0
10.9
8.1
10.3
10.7
Time and savings deposits
Commercial banks
10
T o t a l..........................................................................................................
11
Savings4......................................................................................................
12
Small-denomination tim e5 ...................................................................
13
Large-denomination time6...................................................................
14 Thrift institutions7.......................................................................................
10.8
- 2 1 .4
33.2
12.6
4.7
5.8
22.9
2.9
- 3 .3
10.1
6.7
.0 '
15 Total loans and securities at commercial banks8.............................
35.9
27.0
13.2
15.0
1.6
- 0.1
13.4
4.9
- 1.0
- 0 .7
8.2
4.4
- 1 4 .6
- 3 .9
- 1 2 .4
2.3
11.9
5.9
21.9
7.3
- 1 8 .6
6.6
8.4
\ 2 .0 r
n.a.
5.6
9.0
9.8
13.1
15.4
- 1 1 .7 ' ’
-9 .8
1.2
6.9
9.5
- 3 4 .7 r
13.7
9.3
16.2
16.7
- 2 1 .5
8.7
9.8
10.8
11.5
- 5 .2
11.2
15.2
9.3
n.a.
12.9
1.7
15.4
18.8
9.7
15.4
- 3 1 .2
30.0
34.2
5.0
20.7
5.0
24.5
28.8
9.9
18.9
- 3 8 .8
35.4
44.6
10.0
21.0
- 5 3 .0
41.4
51.4
3.9
7.7
- 2 3 .0
14.2
20.1
1.3
0.6
- 9 .7
16.0
- 10.1
.8
14.7
11.8
1980
Q2
03
Q4
2.0
2.5
6.8
5.6
17.6r
1981
1980
Ql
Dec.
12.8 '
15.7'
8.1
- .6
1981
Jan.
Feb.
Mar.
Apr.
Interest rates (levels, percent per annum)
Short-term rates
Federal funds9 .............................................................................................
Discount window borrowing10..............................................................
Treasury bills (3-month market yield) 11............................................
Commercial paper (3-m onth) 1 1 1 2 ........................................................
12.69
12.45
9.62
11.18
9.83
10.35
9.15
9.65
15.85
11.78
13.61
15.26
16.57
13.00
14.39
15.34
18.90
12.87
15.49
18.07
19.08
13.00
15.02
16.58
15.93
13.00
14.79
15.49
14.70
13.00
13.36
13.94
15.72
13.00
13.69
14.56
Long-term rates
Bonds
20
U .S. governm ent13................................................................................
21
State and local governm ent14............................................................
22
Aaa utility (new issue) 15.....................................................................
23 Conventional m ortgages16.......................................................................
10.58
7.95
11.77
12.70
10.95
8.58
12.20
13.12
12.23
9.59
13.49
14.62
12.74
9.97
14.45
n.a.
12.49
10.11
14.51
15.05
12.29
9.66
14.12
14.95
12.98
10.10
14.90
15.10
12.94
10.16
14.71
15.25
13.46
10.62
15.68
15.70
16
17
18
19
1. Unless otherwise noted, rates o f change are calculated from average amounts
outstanding in preceding month or quarter. Growth rates for member bank reserves
are adjusted for discontinuities in series that result from changes in Regulations D
and M.
2. Includes reserve balances at Federal Reserve Banks in the current week plus
vault cash held two weeks earlier used to satisfy reserve requirements at all deposi
tory in stitution s plu s cu rren cy outside the U .S . Treasury, Federal Reserve Banks,
the vaults of depository institutions, and surplus vault cash at depository institu
tions.
3. M -l A: Averages of daily figures for (1) demand deposits at all commercial
banks other than those due to domestic banks, the U .S. government, and foreign
banks and official institutions less cash items in the process of collection and Federal
Reserve float; and (2) currency outside the Treasury, Federal Reserve Banks, and
the vaults of commercial banks.
M -1B: M -l A plus negotiable order of withdrawal and automated transfer service
accounts at banks and thrift institutions, credit union share draft accounts, and
demand deposits at mutual savings banks.
M-2: M -1B plus savings and small-denomination time deposits at all depository
institutions, overnight repurchase agreements at commercial banks, overnight Eu
rodollars held by U .S. residents other than banks at Caribbean branches o f member
banks, and money market mutual fund shares.
M-3: M -2 plus large-denomination time deposits at all depository institutions
and term RPs at commercial banks and savings and loan associations.
L: M -3 plus other liquid assets such as term Eurodollars held by U .S. residents
other than banks, bankers acceptances, commercial paper. Treasury bills and other
liquid Treasury securities, and U .S . savings bonds.
4. Savings deposits exclude NOW and ATS accounts at commercial banks.
5. Small-denomination time deposits are those issued in amounts of less than
$ 100, 000 .
6 . Large-denomination time deposits are those issued in amounts of $100,000 or
more.
7. Savings and loan associations, mutual savings banks, and credit unions.
8 . Changes calculated from figures shown in table 1.23.
9. Averages of daily effective rates (average of the rates on a given date weighted
by the volume of transactions at those rates).
10. Rate for the Federal Reserve Bank of New York.
11. Quoted on a bank-discount basis.
12. Unweighted average of offering rates quoted by at least five dealers.
13. Market yields adjusted to a 20-year maturity by the U .S. Treasury.
14. Bond Buyer series for 20 issues of mixed quality.
15. W eighted averages o f new publicly offered bonds rated A aa, A a, and A by
M oody’s Investors Service and adjusted to an Aaa basis. Federal Reserve com
pilations.
16. Average rates on new commitments for conventional first mortgages on new
homes in primary markets, unweighted and rounded to nearest 5 basis points, from
Dept, of Housing and Urban Developm ent.
AThe monetary aggregates and their components have been revised due to new
seasonal adjustment factors.
A4
1.11
Domestic Financial Statistics □ May 1981
RESERVES OF DEPO SITORY INSTITUTIONS, RESERVE BANK CREDIT
M illions o f dollars
Monthly averages of
daily figures
W eekly averages of daily figures for week-ending
1981
1981
Factors
Feb.
Mar.
Apr.
Mar. 18
Mar. 25
Apr. 1
Apr. 8
Apr. 15
Apr. 22
Apr. 29
Supplying R eserve F unds
1 Reserve Bank credit outstanding..................
140,373
140,919
143,592
141,557
141,445
141,741
140,957
143,214
145,885
144,630
2 U .S. government securities1 .............................
3
Bought outright.................................................
116.509
116.509
118,667
118,515
152
8,793
8,733
60
118,546
118,381
165
8,753
8,730
23
118.396
118.396
119.785
119.785
8.739
8.739
120,008
119,468
540
8,775
8,720
55
118.711
118.711
5 Federal agency securities....................................
6
Bought outright.................................................
118,098
118,033
65
8,751
8,734
17
8.722
8.722
8.720
8.720
122,542
120,841
1,701
8,839
8,720
119
119,678
119,095
583
8,835
8,720
115
9 Loans............................................ ............................
10 Float .........................................................................
11 Other Federal Reserve assets...........................
1,278
3,755
10,092
35
1,004
2,925
10,106
69
1,343
3,139
10,258
774
3,262
10,077
38
888
2,836
10,223
143
1,464
2,536
10,298
887
2,852
10,100
1,142
3,419
10,147
156
864
3,201
10,283
112
2,278
3,244
10,483
12 Gold s to c k ..............................................................
13 Special drawing rights certificate a cco u n t...
14 Treasury currency outstand ing.........................
11,159
2,518
13,498
11,156
2,653
13,506
11,154
2,818
13,521
11,156
2,647
13,489
11,155
2,732
13,493
11,155
2,818
13,575
11,154
2,818
13,512
11,154
2,818
13,516
11,154
2,818
13,524
11,154
2,818
13,530
131,879
451
132,553
472
134,536
498
132,765
472
132,630
477
133,023
483
133,905
492
134,983
496
135,045
500
134,344
503
3,297
319
401
3,045
319
342
3,353
411
295
3,131
391
352
3,242
272
328
2,887
334
322
2,863
329
255
3,033
347
285
3,969
393
320
3,536
580
301
4,609
26,591
4,782
26,722
4,875
27,117
4,774
26,963
4,719
27,158
4,832
27,409
4,854
25,743
4,893
26,665
4,897
28,258
4,927
27,940
8.733
8.733
A bsorbing R eserve Funds
15 Currency in circulation........................................
16 Treasury cash holdings........................................
Deposits, other than member bank reserves,
with Federal Reserve Banks
17
T reasury..............................................................
18
F o reig n .................................................................
19
O ther.....................................................................
20 Other Federal Reserve liabilities and
c a p ita l..............................................................
21 Reserve accounts2.................................................
End-of-month figures
Wednesday figures
1981
1981
Feb.
Apr.
Mar.
Mar. 18
Mar. 25
Apr. 1
Apr. 8
Apr. 15
Apr. 22
Apr. 29
S upplying R eserve F unds
22 Reserve bank credit outstanding....................
139,199
141,272
143,452
143,791
145,343
141,787
142,810
146,497
150,722
156,848
23 U .S. government securities1 .............................
24
Bought outright.................................................
25
Held under repurchase agreem ents...........
26 Federal agency securities....................................
27
Bought outright.................................................
117.621
117.621
119.687
119.687
119.561
119.561
8.733
8.733
117,750
117,533
217
8,752
8,722
120.036
120.036
8.720
8.720
119,606
118,541
1,065
9,151
8,733
119.495
119.495
8.737
8.737
118,043
117,666
377
8,779
8,722
8.722
8.722
8.720
8.720
126,168
120,465
5,703
9,152
8,720
122,897
120,037
2,860
9,286
8,720
28
Held under repurchase agreem ents...........
57
418
30
432
566
29
30
31
32
A cceptances............................................................
Loans.........................................................................
F lo a t ..........................................................................
Other Federal Reserve a ssets...........................
1,249
1,545
10,047
298
656
3,261
10,235
2,333
2,156
10,556
1,912
3,350
10,235
267
3,229
2,743
10,347
191
1,758
3,035
10,301
467
4,031
10,095
3,208
4,205
10,328
446
1,306
3,160
10,490
549
8,572
4,926
10,618
33 Gold s to c k ..............................................................
34 Special drawing rights certificate a cco u n t...
35 Treasury currency outstand ing.........................
11,156
2,518
13,939
11,154
2,818
14,002
11,154
2,818
13,534
11,156
2,668
13,489
11,155
2,818
13,502
11,154
2,818
13,509
11,154
2,818
13,516
11,154
2,818
13,516
11,154
2,818
13,529
11,154
2,818
13,534
131,833
464
133,915
494
134,465
508
132,994
474
133,031
476
133,612
483
134,836
494
135,496
497
135,078
498
134,701
508
2,284
422
337
3,032
474
313
4,460
476
311
2,858
261
392
2,609
244
369
2,305
320
407
2,406
292
284
2,296
388
341
3,089
319
316
5,737
326
266
4,737
26,734
4,855
26,164
4,674
26,063
4,621
29,504
4,670
31,419
4,614
27,527
4,769
27,217
4,650
30,317
4,965
33,957
5,002
37,813
A bsorbing R eserve F unds
36 Currency in circulation........................................
37 Treasury cash holdings........................................
Deposits, other than member bank reserves,
with Federal Reserve Banks
38
T reasury..............................................................
39
F o reig n .................................................................
40
O ther.....................................................................
41 Other Federal Reserve liabilities and
ca p ita l..............................................................
42 Reserve accounts2 .................................................
1. Includes securities loaned— fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks— and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Includes reserve balances of all depository institutions,
N o te . For amounts of currency and coin held as reserves, see table 1.12.
Member Banks
1.12
RESERVES AND BORROWINGS
A5
Depository Institutions
Millions of dollars
Monthly averages of daily figures
Reserve classification
1 Reserve balances with Reserve Banks1.........
1981
Aug.
Sept.
32,473
28,923
29,164
Feb.P
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
reserve balances2......................................
Vault cash equal to required reserves at
other institutions......................................
Surplus vault cash at other institutions3 ..
Reserve balances + total vault cash4 ...........
Reserve balances + total vault cash used
to satisfy reserve requirements4 5 ...........
Required reserves (estim a te d )........................
Excess reserve balances at Reserve Banks4 6 .
Total borrowings at Reserve B anks...........
Seasonal borrowings at Reserve Banks
Large comm ercial banks
Reserves held..........................................................
Required..............................................................
E x cess...................................................................
Small commercial banks
Reserves held..........................................................
Required..............................................................
E x cess...................................................................
U.S. agencies and branches
Reserves held..........................................................
Required..............................................................
E x cess...................................................................
A ll other institutions
Reserves held..........................................................
Required..............................................................
E x cess...................................................................
Apr.P
29,976
29,215
15,311
26,664
18,149
27,114
19,293
26,591
17,824
26,722
17,327
27,117
17,189
2 Total vault cash (estim a ted ).............................
3 Vault cash at institutions with required
4
Mar.P
11,344
11,262
11,811
11,678
11,876
12,602
13,587
12,187
11,687
11,687
n.a.
n.a.
43,972
n.a.
n.a.
40,373
n.a.
n.a.
41,164
n.a.
n.a.
41,815
439
2,996
44,674
704
4,843
44.940
700
5,006
46,520
763
4,874
44,524
1,237
4,403
44,155
1,204
4,298
44,395
n.a.
43,578
394
1,473
82
n.a.
40,071
302
659
n.a.
40,908
256
1,311
26
n.a.
41,498
317
1,335
67
41,678
40,723
955
2,156
99
40,097
40,067
30
1,617
116
41,514
41,025
489
1,405
120
39,650
39,448
202
1,278
148
39,752
39,372
380
1,004
197
40,097
40,071
26
1,343
161
24.940
25,819
-8 7 9
26,267
26,605
-3 3 8
24,874
25,328
-454
24,772
25,145
-373
24,894
25,519
-6 2 5
13,719
13,523
196
13,935
13,690
245
13,305
13,235
70
13,386
13,229
157
13,628
13,558
70
260
230
30
253
228
25
388
366
22
461
450
11
444
432
12
494
495
513
502
11
502
519
-1 7
605
548
57
611
562
49
Apr. 8 p
Apr. 15 p
Apr. 22 p
Apr. 29 p
10
-1
Weekly averages of daily figures for week ending
Feb. 25 p
24 Reserve balances with Reserve Banks1.........
25 Total vault cash (estim a ted ).............................
26
Vault cash at institutions with required
reserve balances2......................................
27
Vault cash equal to required reserves at
other institutions......................................
28
Surplus vault cash at other institutions3 ..
29 Reserve balances + total vault cash4 ...........
30 Reserve balances + total vault cash used
to satisfy reserve requirements4 5 ...........
31 Required reserves (estim a te d ).........................
32 Excess reserve balances at Reserve Banks4-6 .
33
Total borrowings at Reserve Banks...........
34
Seasonal borrowings at Reserve Banks
Large comm ercial banks
35 Reserves held..........................................................
36
Required..............................................................
37
E x cess...................................................................
Small commercial banks
38 Reserves held..........................................................
39
Required..............................................................
40
E x cess...................................................................
U.S. agencies and branches
41 Reserves held..........................................................
42
Required..............................................................
43
E x cess...................................................................
A ll other institutions
44 Reserves held..........................................................
45
Required..............................................................
46
E x cess...................................................................
Mar. 4 p
Mar. U p
Mar. 2 5 P
Apr. I p
26,765
16,820
27,122
17,415
25,217
18,457
26,963
17,144
27,158
16,496
27,409
17,135
25,743
17,467
26,665
17,681
28,258
16,155
27,940
17,353
11,464
11,640
12,506
11,538
11,152
11,560
11,873
11,991
10,971
11,845
700
4,656
43,693
1,285
4,490
44,644
1,269
4,682
43,780
1,226
4,380
44,214
1,208
4,136
43,760
1,217
4,358
44,650
1,184
4,410
43,298
1,194
4,496
44,434
1,186
3,998
44,503
1,238
4,270
45,379
39,037
39,202
-1 6 5
1,713
160
40,154
39,479
675
1,299
176
39,098
38,868
230
768
185
39,834
39,491
343
774
193
39,624
39,464
160
888
200
40,292
39,642
650
1,464
220
38,888
38,837
51
887
162
39,938
39,620
318
1,142
149
40,505
40,739
-2 3 4
864
149
41,109
41,004
105
2,278
175
23,669
25,041
- 1 ,3 7 2
24,946
25,283
-3 3 7
24,595
24,831
-2 3 6
24,583
25,302
-7 1 9
24,348
25,066
-7 1 8
25,592
25,324
268
24,263
24,701
-4 3 8
24,949
25,344
-3 9 5
24,806
25,935
- 1 ,1 2 9
25,501
26,031
-5 3 0
13,180
13,226
-4 6
13,376
13,206
170
13,224
13,027
197
13,315
13,191
124
13,492
13,387
105
13,584
13,340
244
13,267
13,163
104
13,363
13,269
94
13,696
13,787
-9 1
14,131
13,990
141
482
440
42
490
463
27
470
455
15
470
446
24
444
460
-1 6
440
431
9
446
437
9
455
443
12
436
430
6
435
422
13
485
495
-1 0
625
527
98
587
555
32
589
552
37
626
551
75
570
547
23
583
536
47
624
564
60
611
587
24
630
561
69
1. Includes all reserve balances of depository institutions.
2. Prior to Nov. 13, 1980, the figures shown reflect only the vault cash held by
member banks.
3. Total vault cash at institutions without required reserve balances less vault
cash equal to their required reserves.
4. Adjusted to include waivers of penalties for reserve deficiencies in accordance
with Board policy, effective Nov. 19, 1975, o f permitting transitional relief on a
graduated basis over a 24-month period when a nonmember bank merged into an
Mar. 18 p
existing member bank, or when a nonmember bank joins the Federal Reserve
System. For weeks for which figures are preliminary, figures by class of bank do
not add to total because adjusted data by class are not available.
5. Reserve balances with Federal Reserve Banks plus vault cash at institutions
with required reserve balances plus vault cash equal to required reserves at other
institutions.
6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required reserves. (This measure of excess reserves is
comparable to the old excess reserve concept published historically.)
A6
1.13
Domestic Financial Statistics □ May 1981
FEDERAL FUNDS AND REPURCHASE AGREEMENTS
Large Member Banks'
Averages of daily figures, in millions of dollars
1981, week ending W ednesday
By maturity and source
Mar. 4
One day and continuing contract
1 Commercial banks in United S t a t e s ......................................
2 Other depository institutions, foreign banks and foreign
official institutions, and U .S. government agencies .
3 Nonbank securities d e a ler s........................................................
4 All oth er...........................................................................................
Mar. 11
Mar. 18
Mar. 25 r
Apr. 1
Apr. 8
Apr. 15
Apr. 22
Apr. 29
49,384
53,647
49,104
47,575
48,803
57,586
56,645
53,824
49,944
14,060
2,759
20,076
15,595
2,887
19,514
15,548
2,179
19,180
15,698
2,104
18,753
14,932
2,832
19,608
14,318
2,778
19,050
13,549
2,582
19,324
12,735
2,206
16,284
13,021
3,162
20,205
A ll other maturities
5 Commercial banks in United S t a t e s ......................................
6 Other depository institutions, foreign banks and foreign
official institutions, and U .S . government agencies .
7 Nonbank securities d e a ler s........................................................
8 All oth er...........................................................................................
3,669
3,475
3,531
3,629
3,475
3,210
3,481
4,749
3,608
7,430
4,146
10,681
7,552
4,314
10,938
7,664
4,144
10,581
7,972
4,556
10,238
7,327
5,013
10,414
7,159
4,474
9,961
7,229
4,371
10,077
7,864
4,340
13,363
7,678
4,464
10,329
M emo : Federal funds and resale agreement loans in ma
turities of one day or continuing contract
9 Commercial banks in United S t a t e s ......................................
10 Nonbank securities d e a le r s........................................................
15,554
2,719
15,117
2,651
17,058
3,258
15,983
3,065
15,985
3,066
17,068
3,364
14,963
2,947
16,101
2,984
14,351
2,988
1. Banks with assets of $1 billion or more as of Decem ber 31, 1977.
Policy Instruments
1.14
A7
FEDERAL RESERVE BANK INTEREST RATES
Percent per annum
Current and previous levels
Extended credit
Short-term
adjustment credit1
Federal Reserve
Bank
Emergency credit
to all others
under section 133
Special circumstances2
Seasonal credit
Rate on
4/30/81
Effective
date
Previous
rate
Rate on
4/30/81
Effective
date
Previous
rate
Rate on
4/30/81
Effective
date
Previous
rate
Rate on
4/30/81
Effective
date
Previous
rate
B oston........................
New Y ork..................
Philadelphia.............
C levelan d ..................
Richm ond..................
A tla n ta ......................
13
13
13
13
13
13
12/8/80
12/5/80
12/8/80
12/5/80
12/5/80
12/5/80
12
12
12
12
12
12
13
13
13
13
13
13
12/8/80
12/5/80
12/8/80
12/5/80
12/5/80
12/5/80
12
12
12
12
12
12
14
14
14
14
14
14
12/8/80
12/5/80
12/8/80
12/5/80
12/5/80
12/5/80
13
13
13
13
13
13
16
16
16
16
16
16
12/8/80
12/5/80
12/8/80
12/5/80
12/5/80
12/5/80
15
15
15
15
15
15
C hicago......................
St. L ou is....................
M inneapolis.............
Kansas C i t y .............
D a lla s ........................
San Francisco...........
13
13
13
13
13
13
12/8/80
12/5/80
12/5/80
12/5/80
12/8/80
12/5/80
12
12
12
12
12
12
13
13
13
13
13
13
12/8/80
12/5/80
12/5/80
12/5/80
12/8/80
12/5/80
12
12
12
12
12
12
14
14
14
14
14
14
12/8/80
12/5/80
12/5/80
12/5/80
12/8/80
12/5/80
13
13
13
13
13
13
16
16
16
16
16
16
12/8/80
12/5/80
12/5/80
12/5/80
12/8/80
12/5/80
15
15
15
15
15
15
Range of rates in recent years4-5
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N .Y .
19.................................
July 16.................................
23.................................
Nov. 11.................................
19.................................
D ec. 13.................................
17.................................
24.................................
5 Vi
51/4-5 Vi
5V4
5-5V4
5-51/4
5
43/4-5
43/4
43/4-5
5
43/4-5
43/4
41/2-43/4
41/ 2—43/4
4Vi
5 Vi
51/4
51/4
5>/4
5
5
5
43/4
5
5
5
43/4
43/4
4 Vi
4 Vi
1973— Jan. 15.................................
Feb. 26.................................
Mar. 2.................................
Apr. 23.................................
May 4 .................................
11.................................
18.................................
June 11.................................
15.................................
July
2 .................................
Aug. 14.................................
23..................................
5
5-5 Vi
5 Vi
5 ^-53/4
53/4
53/4-6
6
6-6 Vl
6 Vi
7
7 - 7 ‘/2
7Vi
5
5Vi
5 Vi
5 l/i
53/4
6
6
6 Vi
6 Vi
7
7 Vi
7 Vi
Effective date
cr
w'
In effect D ec. 31, 1970....................
1971— Jan.
8 .................................
15.................................
19.................................
22.................................
29________________
Effective date
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
1974— Apr. 25......................
30......................
D ec. 9 ......................
16......................
7 Vi-8
8
73/4-8
73/4
8
8
73/4
73/4
IV4
IV'4
IV4
63/4-71/4
63/4
6V4-63/4
6!/4
6 -6 >/4
V/4
71/4
V/4
63/4
63/4
61/4
6'/4
6
19......................
23......................
Nov. 22......................
26......................
5 Vi-6
5 Vi
51/4-5 Vi
51/4
5 Vi
5 Vi
5 {A
51/4
1977— Aug. 30......................
31......................
Sept. 2 ......................
Oct. 26......................
51/4—53/4
5!/4-53/4
53/4
6
51/4
53/4
53/4
6
1978— Jan.
6 -6 Vi
6 Vi
6 Vi-7
7
7-71/4
6 V1
6 Vi
7
7
V/4
1975— Jan.
6 ......................
10......................
24......................
Feb. 5 ......................
7 ......................
Mar. 10......................
14......................
May 16......................
1976— Jan.
9 ......................
20......................
May 11......................
12......................
July
3 ......................
1. Effective D ec. 5, 1980, a 3 percent surcharge was applied to short-term ad
justment credit borrowings by institutions with deposits o f $500 million or more
who borrowed in successive weeks or in more than 4 weeks in a calendar quarter.
2. Applicable to advances when exceptional circumstances or practices involve
only a particular depository institution as described in section 201.3(b) (2) of R eg
ulation A .
3. Applicable to emergency advances to individuals, partnerships, and corpo
rations as described in section 201.3(c) of Regulation A.
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N .Y .
1978— July
Aug.
Sept.
Oct.
10......................
21......................
22......................
16......................
20......................
Nov. 1......................
3 ......................
V/4
V/4
8
8-81/2
8 Vi
8 Vi-9 V^
91/2
V/4
V/4
8
81/2
m
9 l/i
9 Vi
1979— July 20......................
Aug. 17......................
20......................
Sept. 19......................
21......................
Oct.
8 ......................
10......................
10
1 0 -1 0 ^
lOVi
io ^ - i i
11
11-12
12
10
lOVi
10 Vi
11
11
12
12
1980— Feb. 15......................
19......................
May 29......................
30......................
June 13......................
16......................
July 28......................
29......................
Sept. 26......................
Nov. 17......................
D ec. 5 ......................
8 ......................
In effect Apr. 30, 1981
12-13
13
12-13
12
11-12
11
10-11
10
11
12
12-13
13
13
Effective date
13
13
13
12
11
11
10
10
11
12
13
13
13
4. Rates for short-term adjustment credit. For description and earlier data see
the following publications of the Board of Governors: Banking and M onetary
Statistics, 1914-1941 and 1941-1970; Annual Statistical Digest, 1971-1975, 19721976, 1973-1977, and 1974-1978.
5. Twice in 1980, the Federal Reserve applied a surcharge to short-term ad
justment credit borrowings by institutions with deposits of $500 million or more
who had borrowed in successive weeks or in more than 4 weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. On Nov. 17,1980, a 2 percent surcharge was adopted which was subsequently
raised to 3 percent on D ec. 5, 1980.
A8
1.15
Domestic Financial Statistics □ May 1981
DEPOSITORY INSTITUTIONS RESERVE REQUIREMENTS'
Percent of deposits
Type of deposit, and deposit interval
in millions of dollars
Net dem and 2
0 - 2 ........................................................
2 - 1 0 ................................................
10-100................
100-400.............................
Over 4 0 0 ..........................
Member bank requirements
before implementation of the
Monetary Control Act
Percent
Effective date
7
9Vi
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
l l 3/4
123/4
WA
Time and savings 2 3
S a v in g s.............................
Time4
0-5, by maturity
30-179 days ...........
180 days to 4 years
4 years or m o re . . .
Over 5, by maturity
30-179 days ...........
180 days to 4 years
4 years or more . . .
Net transaction accounts 6
$0-$25 m illio n ......................
Over $25 m illio n ..................
Depository institution requirements
after implementation o f the
Monetary Control A c t5
Percent
Effective date
3
12
11/13/80
11/13/80
Nonpersonal time deposits 1
By original maturity
Less than 4 years.............
4 years or m o re................
11/13/80
11/13/80
Eurocurrency liabilities
All ty p e s.............................
11/13/80
3/16/67
3
2 VS
1
6
21A
1
3/16/67
1/8/76
10/30/75
12/12/74
1/8/76
10/30/75
1. For changes in reserve requirements beginning 1963, see Board’s Annual
Statistical Digest, 1971-1975 and for prior changes, see Board’s Annual Report for
1976, table 13. Under provisions of the Monetary Control A ct, depository insti
tutions include commercial banks, mutual savings banks, savings and loan asso
ciations, credit unions, agencies and branches of foreign banks, and Edge Act
corporations.
2. (a) Requirement schedules are graduated, and each deposit interval applies
to that part of the deposits o f each bank. Dem and deposits subject to reserve
requirements were gross demand deposits minus cash items in process of collection
ana demand balances due from dom estic banks.
(b) The Federal Reserve Act as amended through 1978 specified different ranges
of requirements for reserve city banks and for other banks. Reserve cities were
designated under a criterion adopted effective Nov. 9 ,1 9 7 2 , by which a bank having
net demand deposits of more than $400 million was considered to have the character
of business of a reserve city bank. The presence o f the head office of such a bank
constituted designation of that place as a reserve city. Cities in which there were
Federal Reserve Banks or branches were also reserve cities. Any banks having net
demand deposits of $400 million or less were considered to have the character of
business of oanks outside of reserve cities and were permitted to maintain reserves
at ratios set for banks not in reserve cities.
(c) Effective Aug. 24, 1978, the Regulation M reserve requirements on net
balances due from domestic banks to their foreign branches and on deposits that
foreign branches lend to U .S residents were reduced to zero from 4 percent and
1 percent respectively. The Regulation D reserve requirement on borrowings from
unrelated banks abroad was also reduced to zero from 4 percent.
(d) Effective with the reserve computation period beginning Nov. 16, 1978,
domestic deposits of Edge corporations were subject to the same reserve require
ments as deposits of member banks.
3. (a) Negotiable order o f withdrawal (NO W ) accounts and time deposits such
as Christmas and vacation club accounts were subject to the same requirements as
savings deposits.
(b) The average reserve requirement on savings and other time deposits before
implementation of the Monetary Control A ct had to be at least 3 percent, the
minimum specified by law.
4. (a) Effective Nov. 2 ,1 9 7 8 , a supplementary reserve requirement of 2 percent
was imposed on large time deposits o f $ 100,000 or m ore, obligations of affiliates,
and ineligible acceptances. This supplementary requirement was eliminated with
the maintenance period beginning July 24, 1980.
Type of deposit, and
deposit interval
(b) Effective with the reserve maintenance period beginning Oct. 25, 1979, a
marginal reserve requirement o f 8 percent was added to managed liabilities in
excess of a base amount. This marginal requirement was increased to 10 percent
beginning April 3, 1980, was decreased to 5 percent beginning June 12, 1980, and
was reduced to zero beginning July 24, 1980. M anaged liabilities are defined as
large time deposits, Eurodollar borrowings, repurchase agreements against U .S.
government and federal agency securities, federal funds borrowings from non
member institutions, and certain other obligations. In general, the base for the
marginal reserve requirement was originally the greater o f (a) $100 million or (b)
the average amount of the managed liabilities held by a member bank, Edge
corporation, or family of U .S . branches and agencies o f a foreign bank for the two
statement weeks ending Sept. 26,1979. For the computation period beginning Mar.
20,1980, the base was lowered by (a) 7 percent or (b) the decrease in an institution’s
U .S. office gross loans to foreigners and gross balances due from foreign offices
of other institutions between the base period (Sept. 13-26, 1979) and the week
ending Mar. 12,1980, whichever was greater. For the computation period beginning
May 2 9,1980, the base was increased by 7'/2 percent above the base used to calculate
the marginal reserve in the statement week of May 14-21, 1980. In addition,
beginning Mar. 19, 1980, the base was reduced to the extent that foreign loans and
balances declined.
5. For existing nonmember banks and thrift institutions at the time o f im ple
mentation of the Monetary Control A ct, the phase-in period ends Sept. 3, 1987.
For existing member banks the phase-in period is about three years, depending on
whether their new reserve requirements are greater or less than the old require
ments. For existing agencies and branches of foreign banks, the phase-in ends Aug.
12, 1982. All new institutions will have a two-year phase-in beginning with the date
that they open for business.
6 . Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment
orders of withdrawal, and telephone and preauthorized transfers (in excess of three
per month) for the purpose o f making payments to third persons or others.
7. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which the beneficial interest is
held by a depositor that is not a natural person. A lso included are certain trans
ferable time deposits held by natural persons, and certain obligations issued to
depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.
N o t e . Required reserves must be held in the form of deposits with Federal
Reserve Banks or vault cash. After implementation o f the Monetary Control A ct,
nonmembers may maintain reserves on a pass-through basis with certain approved
institutions.
Policy Instruments
1.16
A9
MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions
Percent per annum
Savings and loan associations and
mutual savings banks
Commercial banks
Type and maturity of deposit
In effect Apr. 30, 1981
Percent
1 S a v in g s...........................................................................................
2 Negotiable order of withdrawal accounts 2 ......................
Time accounts 3
Fixed ceiling rates by maturity 4
3
14-89 days 5 ..............................................................................
4
90 days to 1 y ea r.....................................................................
5
1 to 2 years ' ...........................................................................
6
2 to 2 Vl years 7 .......................................................................
7
2 l/ i to 4 years 7 .......................................................................
8
4 to 6 years 8 ...........................................................................
9
6 to 8 years 8 ...........................................................................
10
8 years or more 8 ...................................................................
11
Issued to governmental units (all maturities) 1 0 .........
12
Individual retirement accounts and Keogh (H .R . 10)
plans (3 years or more) 1011......................................
13
14
Special variable ceiling rates by maturity
6-month money market time deposits i2........................
2 Vi years or m o r e ..................................................................
Effective
date
5 '/4
5>/4
7/1/79
12/31/80
5 Vi
8/1/79
1/1/80
53/4
7/1/73
6>/2
7 !/4
71/2
73/4
Percent
Effective
date
7/1/73
1/1/74
5 Vi
5 Vi
7/1/79
12/31/80
53/4
53/4
7/1/73
7/1/73
1/21/70
1/21/70
1/21/70
6
6 V2
71/4
i i / i /73
5
5 '/2
5Vi
(6)73,/4
6/1/78
73/4
(14)
(13)
(,4)
In effect Apr. 30. 1981
Effective
date
Percent
7/1/73
11/1/73
12/23/74
6/1/78
6/1/78
1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loan
associations.
2. For authorized states only, federally insured commercial banks, savings and
loan associations, cooperative banks, and mutual savings banks in Massachusetts
and New Hampshire were first permitted to offer negotiable order of withdrawal
(NOW ) accounts on Jan. 1, 1974. Authorization to issue NOW accounts was ex
tended to similar institutions throughout New England on Feb. 27, 1976, and in
New York State on Nov. 10, 1978, and in New Jersey on Dec. 28, 1979. Author
ization to issue NOW accounts was extended to similar institutions nationwide
effective Dec. 31, 1980.
3. For exceptions with respect to certain foreign time deposits see the F e d e r a l
R e s e r v e B u l l e t i n for October 1962 (p. 1279), August 1965 (p. 1084), and Feb
ruary 1968 (p. 167).
4. Effective Nov. 10, 1980, the minimum notice period for public unit accounts
at savings and loan associations was decreased to 14 days and the minimum maturity
period for time deposits at savings and loan associations in excess of $100,000 was
decreased to 14 days. Effective Oct. 30, 1980, the minimum maturity or notice
period for time deposits was decreased from 30 days to 14 days for mutual savings
banks.
5. Effective Oct. 30, 1980, the minimum maturity or notice period for time
deposits was decreased from 30 days to 14 days for commercial banks.
6. No separate account category.
7. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was
required for savings and loan associations, except in areas where mutual savings
banks permitted lower minimum denominations. This restriction was removed for
deposits maturing in less than 1 year, effective Nov. 1, 1973.
8. No minimum denomination. Until July 1, 1979, minimum denomination was
$1,000 except for deposits representing funds contributed to an Individual Retire
ment Account (IR A ) or a Keogh (H .R . 10) plan established pursuant to the Internal
Revenue Code. The $1,000 minimum requirement was removed for such accounts
in December 1975 and November 1976 respectively.
9. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for certificates
maturing in 4 years or more with minimum denominations of $1,000; however, the
amount of such certificates that an institution could issue was limited to 5 percent
of its total time and savings deposits. Sales in excess of that amount, as well as
certificates of less than $1,000, were limited to the 6 x/i percent ceiling on time
deposits maturing in 2 Vi years or more.
Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing in 4
years or more with minimum denomination of $1,000. There is no limitation on
the amount of these certificates that banks can issue.
10. Accounts subject to fixed rate ceilings. See footnote 8 for minimum denom
ination requirements.
11. Effective January 1, 1980, commercial banks are permitted to pay the same
rate as thrifts on IRA and Keogh accounts and accounts of governmental units
when such deposits are placed in the new 2 '/5-year or more variable ceiling certif
icates or in 26-week money market certificates regardless of the level of the Treasury
bill rate.
12. Must have a maturity of exactly 26 weeks and a minimum denomination of
$10,000, and must be nonnegotiable.
13. Commercial banks, savings and loan associations, and mutual savings banks
were authorized to offer money market time deposits effective June 1, 1978. The
ceiling rate for commercial banks on money market time deposits entered into
before June 5, 1980, is the discount rate (auction average) on most recently issued
six-month U.S. Treasury bills. Until Mar. 15, 1979, the ceiling rate for savings and
loan associations and mutual savings banks was V4 percentage point higher than
the rate for commercial banks. Beginning March 15, 1979, the ^-percentage-point
interest differential is removed when the six-month Treasury bill rate is 9 percent
or more. The full differential is in effect when the six-month bill rate is 83/4 percent
Previous maximum
(6)
63/4
7 Vi
VA
'12/23/7 4 '
7/6/77
1/1/80
0)
(')
Previous maximum
Percent
5 Vi
5
.
(6)
53/4
53/4
6
6
11/1/73
12/23/74
6/1/78
6/1/78
(6)V,/i
6/1/78
73/4
(9)
IV2
Effective
date
0)
1/1/74
0)
1/21/70
1/21/70
1/21/70
ii/1/73
’12/23/74'
7/6/77
$
or less. Thrift institutions may pay a maximum 9 percent when the six-month bill
rate is between 83/4 and 9 percent. Also effective March 15, 1979, interest com
pounding was prohibited on six-month money market time deposits at all offering
institutions. The maximum allowable rates in April for commercial banks and thrift
institutions were as follows: Apr. 2, 12.328; Apr. 7, 14.033; Apr. 14, 13.896; Apr.
21, 13.871; Apr. 28, 14.292. Effective for all six-month money market certificates
issued beginning June 5, 1980, the interest rate ceilings will be determined by the
discount rate (auction average) of most recently issued six-month U .S. Treasury
bills as follows:
Bill rate
Commercial bank ceiling
Thrift ceiling
8.75 and above
bill rate + Vi percent
bill rate + Vi percent
8.50 to 8.75
bill rate + Vi percent
9.00
7.50 to 8.50
bill rate + Vi percent
bill rate + x/i percent
7.25 to 7.50
7.75
bill rate + x/i percent
Below 7.25
7.75
7.75
The prohibition against compounding interest in these certificates continues.
14. Effective Jan. 1, 1980, commercial banks, savings and loan associations, and
mutual savings banks were authorized to offer variable-ceiling nonnegotiable time
deposits with no required minimum denomination and with maturities of 2 Vl years
or more. The maximum rate for commercial banks is 3/4 percentage point below
the yield on 2^ -year U .S. Treasury securities; the ceiling rate for thrift institutions
is Vi percentage point higher than that for commercial banks. Effective Mar. 1,
1980, a temporary ceiling of l l 3/4 percent was placed on these accounts at com
mercial banks; the temporary ceiling is 12 percent at savings and loan associations
and mutual savings banks. Effective for all variable ceiling nonnegotiable time
deposits with maturities of 2 l/i years or more issued beginning June 2, 1980, the
ceiling rates of interest will be determined as follows:
Treasury yield
Commercial bank ceiling
Thrift ceiling
12.00 and above
11.75
12.00
9.50 to 12.00
Treasury y ie ld - Vi percent
Treasury yield
B elo w 9.50
9.25
9.50
Interest may be compounded on these time deposits. The ceiling rates of interest
at which these accounts may be offered vary biweekly. The maximum allowable
rates in April for commercial banks were as follows: Apr. 2, 11.75; Apr. 14, 11.75;
Apr. 28, 11.75. The maximum allowable rates in April for thrift institutions were
as follows: Apr. 2, 12.10; Apr. 14, 12.00; Apr. 28, 12.00.
15. Between July 1, 1979, and Dec. 31, 1979, commercial banks, savings and
loan associations, and mutual savings banks were authorized to offer variable ceiling
accounts with no required minimum denomination and with maturities of 4 years
or more. The maximum rate for commercial banks was l !/4 percentage points below
the yield on 4-year U.S. Treasury securities; the ceiling rate for thrift institutions
was Vi percentage point higher than that for commercial banks.
N o t e . Before Mar. 31, 1980, the maximum rates that could be paid by federally
insured commercial banks, mutual savings banks, and savings and loan associations
were established by the Board of Governors of the Federal Reserve System, the
Board of Directors of the Federal Deposit Insurance Corporation, and the Federal
Home Loan Bank Board under the provisions of 12 C F R 217, 329, and 526,
respectively. Title II of the Depository Institutions Deregulation and Monetary
Control Act of 1980 (P.L. 96—221) transferred the authority of the agencies to
establish maximum rates of interest payable on deposits to the Depository Insti
tutions Deregulation Committee. The maximum rates on time deposits in denom
inations of $100,000 or more with maturities of 30-89 days were suspended in June
1970; such deposits maturing in 90 days or more were suspended in May 1973. For
information regarding previous interest rate ceilings on all types of accounts, see
earlier issues of the F e d e r a l R e s e r v e B u l l e t i n , the Federal H ome Loan Bank
Board Journal, and the Annual Report o f the Federal D eposit Insurance C orpo
ration.
A10
1.17
Domestic Financial Statistics □ May 1981
FEDERAL RESERVE OPEN MARKET TRANSACTIONS
M illio n s o f d o lla r s
1980
1978
Type of transaction
1979
1981
1980
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
U .S . G o v e r n m e n t S ec u r itie s
Outright transactions (excluding matched salepurchase transactions)
1
2
3
4
Treasury bills
Gross purchases............................................................
Gross s a le s .....................................................................
Exchange .......................................................................
R edem ptions................................................................
5
6
7
8
9
Others within 1 Year1
Gross purchases............................................................
Gross sa le s.....................................................................
Maturity shift................................................................
Exchange .......................................................................
R edem ptions................................................................
10
11
12
13
I to 5 vears
Gross purchases............................................................
Gross s a le s .....................................................................
Maturity sh ift................................................................
Exchange .......................................................................
14
15
16
17
5 to 10 vears
Gross purchases............................................................
Gross sa le s .....................................................................
Maturity shift................................................................
Exchange .......................................................................
18
19
20
21
Over 10 years
Gross purchases............................................................
Gross sa le s.....................................................................
Maturity shift................................................................
Exchange .......................................................................
A ll maturities'
22
Gross purchases............................................................
23
Gross sa le s.....................................................................
24
R edem ptions................................................................
16.628
13.725
0
2.033
15.998
6.855
0
2.900
7.668
7.331
0
3.389
200
237
0
0
991
531
0
700
0
600
0
500
1.331
0
0
49
1.100
3.865
0
1.000
0
357
0
0
1.607
0
0
0
1.184
0
-5 .1 7 0
3.203
0
17.339
- 11.308
2.600
912
0
12.427
- 18.251
0
0
0
589
- 1.459
0
0
0
596
-420
0
0
0
2.368
-8 7 9
0
100
0
754
-9 6 7
0
0
0
462
0
0
0
23
990
- 1 .9 3 6
0
0
0
878
-1 .3 8 5
0
2.148
0
- 12.693
7.508
2.138
0
-8 .9 0 9
13.412
0
0
-5 8 9
1.459
0
0
- 596
420
0
0
-2 .3 6 8
500
0
0
-754
967
0
0
-4 6 2
0
0
0
-9 9 0
1.211
0
0
-8 7 8
1.385
523
0
-4 .6 4 6
2.181
703
0
-3 .0 9 2
2.970
0
0
0
0
0
0
0
0
0
0
0
220
0
0
0
0
0
0
0
0
0
0
0
400
0
0
0
0
2.545
454
0
0
1.619
811
0
-4 2 6
1.869
0
0
0
0
0
0
0
0
0
0
0
159
0
0
0
0
0
0
0
0
0
0
0
325
0
0
0
0
24.591
13.725
2.033
2”> 325
6.855
5.500
12.232
7.331
3.389
200
237
0
991
531
700
(1
600
500
1.431
0
49
1.1(H)
3.865
1.000
0
380
0
1.607
0
0
511.126
510.854
627.350
624.192
674.000
675.496
55.766
56.207
55.787
56.462
40.944
41.129
79.754
78.734
61.427
63.062
30.819
31.651
32.003
30.441
}
"
4.188
0
|
- 178
1.526
0
J
2.803
1.063
0
J
25
Matched transactions
Gross s a le s .....................................................................
27
28
Repurchase agreements
Gross purchases............................................................
Gross sa le s.....................................................................
151.618
152.436
107.051
106.968
113.902
113.040
3.203
2.743
20.145
19.808
24.169
23.924
11.534
11.381
6.108
8.137
0
0
1.623
1.246
29 N et change in U .S . governm en t se c u r it ie s ..............
7.743
6.896
3.869
863
771
-6 7 0
516
- 4 .1 5 9
452
422
F e d e r a l A g e n c y O b lig a tio n s
30
31
32
Outright transactions
Gross purchases............................................................
Gross s a le s .....................................................................
R edem ptions................................................................
301
173
235
853
399
134
668
0
145
0
0
91
0
0
21
0
0
0
0
0
22
0
0
0
0
0
3
0
0
15
33
34
Repurchase agreements
Gross purchases............................................................
Gross s a le s .....................................................................
40.567
40.885
37.321
36.960
28.895
28.863
977
1.188
S.922
5.734
4.825
4.880
1.889
1.767
652
1.177
0
0
494
437
35 Net change in federal agencv obligation s................
-4 2 6
681
555
-302
167
-5 5
99
- 525
36 Outright transactions, n e t ............................................
37 Repurchase agreements, n e t ........................................
0
- 366
0
116
0
73
0
222
0
67
0
-4 3
0
253
0
-7 7 6
0
0
0
298
38 Net change in bankers accep tances...........................
- 366
116
73
22"*
67
-4 3
253
-7 7 6
0
298
39 Total net change in System Open Market
Account.......................................................................
6,951
7,693
4.497
784
1,005
-7 6 8
868
-5,460
450
762
-3
42
B a n k e r s A c c epta n c e s
1. Both gross purchases and redemptions include special certificates created
when the Treasury borrows directly from the Federal Reserve, as follows (millions
of dollars): March 1979. 2.600.
N o i l . Sales, redemptions, and negative figures reduce holdings of the System
Open Market Account: all other figures increase such holdings. Details may not
add to totals because of rounding.
Reserve Banks
1.18
FEDERAL RESERVE BANKS
A ll
Condition and Federal Reserve Note Statements
Millions of dollars
Apr. 1
Apr.
W ednesday
End o f month
1981
1981
Apr. 15
Apr. 22
Apr. 29
Apr.
Consolidated condition statement
A ssets
11', 154
2,818
467
11,154
2,818
460
11,154
2,818
445
11,154
2,818
429
11,154
2,818
412
11,156
2,518
495
11,154
2,818
468
11,154
2,818
412
1,758
0
467
0
3,208
0
1,306
0
8,572
0
1,249
0
656
0
2,333
0
191
0
0
446
549
0
298
0
8,722
30
8,722
0
8,720
0
8,720
432
8,720
566
8,737
0
8,722
57
8,720
0
41,945
58,370
17,218
117,533
217
117,750
43,907
58,370
17,218
119.495
0
119.495
43,612
59,118
17,306
120.036
0
120.036
44,041
59,118
17,306
120,465
5,703
126,168
43,613
59,118
17,306
120,037
2,860
122,897
42,033
58,370
17,218
117.621
0
117.621
42,078
58,370
17,218
117,666
377
118,043
43,263
59,118
17,306
119.687
0
119.687
15 Total loans and securities..........................................................
128,451
128,684
131,964
137,072
141,304
127,607
127,776
130,740
16 Cash items in process of c o lle c tio n ......................................
17 Bank prem ises..............................................................................
Other assets
18
Denom inated in foreign currencies2 ...............................
19
A llo th e r ....................................................................................
9,544
465
10,197
466
11,662
466
10,307
468
11,946
469
7,473
461
11,107
465
9,224
467
7,038
2,798
6,849
2,780
6,849
3,013
6,846
3,176
6,848
3,301
7,086
2,500
7,060
2,710
6,768
3,321
20 Total assets.....................................................................................
162,735
163,408
168,371
172,270
178,252
159,296
163,558
164,904
21 Federal Reserve n o t e s ..............................................................
Deposits
22
Depository institutions..........................................................
23
U .S. Treasury— General account......................................
24
Foreign— Official a cco u n ts.................................................
25
O ther...........................................................................................
121,053
122,274
122,922
122,477
122,088
118,854
120,874
121,852
27,527
2,305
320
407
27,217
2,406
292
284
30,317
2,296
388
341
33,957
3,089
319
316
37,813
5,737
326
266
26,734
2,284
422
337
26,164
3,032
474
313
26,063
4,460
476
311
1 G old certificate account............................................................
2 Special drawing rights certificate account...........................
3 C oin..................................................................................................
Loans
4
To depository in stitu tion s...................................................
5
O ther...........................................................................................
Acceptances
6
Held under repurchase agreem ents.................................
Federal agency obligations
7
Bought outright.......................................................................
8
H eld under repurchase agreem ents.................................
U .S. government securities
Bought outright
9
B ills .........................................................................................
10
N o te s.......................................................................................
11
B o n d s .....................................................................................
12
Total1 .....................................................................................
13
Held under repurchase agreem ents.................................
14 Total U .S. government securities..........................................
L iabilities
26 Total deposits...................... .........................................................
30,559
30,199
33,342
37,681
44,142
29,777
29,983
31,310
27 Deferred availability cash ite m s.............................................
28 Other liabilities and accrued dividends3 .............................
6,509
1,943
6,166
2,055
7,457
1,923
7,147
2,252
7,020
2,273
5,928
1,958
7,846
1,952
7,068
1,971
29 Total liabilities..............................................................................
160,064
160,694
165,644
169,557
175,523
156,517
160,655
162,201
30 Capital paid in ..............................................................................
31 S u rp lu s...........................................................................................
32 Other capital accou n ts..............................................................
1,227
1,203
241
1,229
1,203
282
1,230
1,203
294
1,232
1,203
278
1,233
1,203
293
1,222
1,203
354
1,227
1,203
473
1,233
1,203
267
33 Total liabilities and capital a c c o u n ts....................................
162,735
163,408
168,371
172,270
178,252
159,296
163,558
164,904
34 M emo : Marketable U .S . government securities held in
custody for foreign and international account.........
100,720
100,038
100,171
100,591
101,725
94,658
101,214
100,546
C apital A ccounts
Federal Reserve note statement
35 Federal Reserve notes outstanding (issued to bank) . . .
36
Less-held by bank4 ............................................................
37
Federal Reserve notes, n e t .............................................
Collateral fo r Federal Reserve notes
38
Gold certificate account........................................................
39
Special drawing rights certificate account......................
40
Other eligible a sse ts...............................................................
41
U .S. government and agency s e cu ritie s.........................
142,265
21,212
121,053
142,587
20,313
122,274
143,023
20,101
122,922
143,324
20,847
122,477
143,634
21,546
122,088
141,297
22,443
118,854
142,182
21,308
120,874
143,716
21,864
121,852
11,154
2,818
0
107,081
11,154
2,818
0
108,302
11,154
2,818
0
108,950
11,154
2,818
0
108,505
11,154
2,818
0
108,116
11,156
2,518
0
105,180
11,154
2,818
0
106,902
11,154
2,818
0
107,880
42 Total collateral..............................................................................
121,053
122,274
122,922
122,477
122,088
118,854
120,874
121,852
1. Includes securities loaned— fully guaranteed by U .S . government securities
pledged with Federal Reserve Banks— and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Includes U .S . government securities held under repurchase agreement against
receipt of foreign currencies and foreign currencies warehoused for the U .S. Treas
ury. Assets shown in this line are revalued monthly at market exchange rates.
3. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
4. Beginning September 1980, Federal Reserve notes held by the Reserve Bank
are exempt from the collateral requirement.
A12
1.19
Domestic Financial Statistics □ May 1981
FEDERAL RESERVE BANKS
Millions of dollars
Maturity Distribution of Loan and Security Holdings
Type and maturity groupings
Apr. 1
Apr. 8
Wednesday
End of month
1981
1981
Apr. 15
Apr. 22
Apr. 29
Feb. 28
Mar. 31
Apr. 30
1 Loans— T o ta l...................................................................................
2
Within 15 days............................................................................
3
16 days to 90 days.....................................................................
4
91 days to 1 year.......................................................................
1,758
1,700
58
0
467
392
75
0
3,208
3,121
80
7
1,306
1,290
16
0
8,572
8,558
14
0
1,249
1,199
50
0
656
616
40
0
2,333
1,905
428
0
5 Acceptances— T o t a l.....................................................................
6
Within 15 days............................................................................
7
16 days to 90 days.....................................................................
8
91 days to 1 year.......................................................................
191
191
0
0
0
0
0
0
0
0
0
0
446
446
0
0
549
549
0
0
0
0
0
0
298
298
0
0
0
0
0
0
9 U .S. government securities— T o t a l........................................
10
Within 15 days1 ..........................................................................
16 days to 90 days.....................................................................
11
12
91 days to 1 year.......................................................................
Over 1 year to 5 y e a r s............................................................
13
14
Over 5 years to 10 y e a r s ........................................................
15
Over 10 years..............................................................................
117,750
2,943
22,345
28,608
34,772
13,755
15,327
119,495
4,971
21,849
28,821
34,772
13,755
15,327
120,036
4,634
21,917
28,911
35,241
13,918
15,415
126,168
9,559
23,097
28,937
35,241
13,918
15,416
122,897
5,771
22,573
29,978
35,241
13,918
15,416
117,621
3,101
23,245
27,385
34,809
13,754
15,327
118,043
2,265
22,904
29,020
34,772
13,755
15,327
119,687
2,098
21,291
31,983
34,981
13,918
15,416
16 Federal agency obligations— T otal..........................................
17
Within 15 days1 ..........................................................................
18
16 days to 90 days.....................................................................
19
91 days to 1 year.......................................................................
20
Over 1 year to 5 y e a r s............................................................
21
Over 5 years to 10 y e a r s ........................................................
22
Over 10 years..............................................................................
8,752
51
410
1,962
4,690
954
685
8,722
40
595
1,758
4,690
954
685
8,720
19
598
1,824
4,658
936
685
9,152
501
575
1,792
4,658
982
644
9,286
635
615
1,752
4,658
982
644
8,737
128
439
1,843
4,621
1,030
685
8,779
266
397
1,834
4,613
975
685
8,720
69
615
1,752
4,658
982
644
1. Holdings under repurchase agreements are classified as maturing within 15
days in accordance with maximum maturity of the agreements.
1.20 BANK DEBITS AND DEPOSIT TURNOVER
Debits are shown in billions of dollars, turnover as ratio of debits to deposit. Monthly data are at annual rates.
1980
Bank group, or type of customer
1977
1981
1979'
1978
Debits to demand deposits1 (seasonally adjusted)
1 A ll com m ercial b a n k s...............
34,322.8
40,297.8
49,775.0
67,621.4
69.950.2
2 Major New York City banks
3 Other bank s...............................
13,860.6
20,462.2
15,008.7
25,289.1
18,512.7
31,262.3
26,821.8
40,799.6
27.352.2
42,598.0
72.402.3
29,656.0
42.746.3
73,174.6
29,752.0
43,422.5
75.487.3
30,276.0
45.211.3
Debits to savings deposits2 (not seasonally adjusted)
4
5
6
7
ATS/NO W 3
Business4 ..
Others5 ___
All accounts
5.5
21.7
152.3
179.5
17.1
56.7
359.7
432.9
83.3
77.3
515.2
675.8
173.4
95.6
573.7
842.8
218.3
119.2
704.2
1,041.6
529.3
108.2
685.7
1,323.2
526.6
93.4
553.1
1,173.1
668.7
112.8
556.8
1,338.3
253.6
952.6
168.7
262.9
959.5
176.9
12.5
9.8
3.4
5.5
14.2
11.3
3.5
6.1
Demand deposit turnover1 (seasonally adjusted)
8 All commercial banks.............
9 Major N ew York City banks
10 Other b ank s...............................
129.2
503.0
85.9
139.4
541.9
96.8
163.5
646.2
113.3
211.6
842.2
141.8
222:7
865.8
150.8
244.6
956.2
161.3
Savings deposit turnover2 (not seasonally adjusted)
11
12
13
14
ATS/NO W3
Business4. ..
Others5 ___
A ll accounts
6.5
4.1
1.5
1.7
1. Represents accounts of individuals, partnerships, and corporations, and of
states and political subdivisions.
2. Excludes special club accounts, such as Christmas and vacation clubs.
3. Accounts authorized for negotiable orders o f withdrawal (NO W ) and accounts
authorized for automatic transfer to demand deposits (A TS). ATS data availability
starts with Decem ber 1978.
4. Represents corporations and other profit-seeking organizations (excluding
commercial banks but including savings ana loan associations, mutual savings banks,
credit unions, the Export-Import Bank, and federally sponsored lending agencies).
5. Savings accounts other than NOW ; business; and, from Decem ber 1978, ATS.
7.0
5.1
1.7
1.9
7.8
7.2
2.7
3.1
8.4
8.5
3.2
4.0
10.4
11.3
4.1
5.1
15.1
10.9
4.1
6.3
N o te . Historical data for the period 1970 through June 1977 have been estimated;
these estimates are based in part on the debits series for 233 SM SAs, which were
available through June 1977. Back data are available from Publications Services,
Division of Administrative Services, Board of Governors o f the Federal Reserve
System, Washington, D .C . 20551. Debits and turnover data for savings deposits
are not available before July 1977.
Monetary Aggregates
1.21
A13
MONEY STOCK MEASURES AND COMPONENTS
Billions of dollars, averages of daily figures
Item
1977
D ec.
1978
D ec.
1979
D ec.
1980'
1980
D e c. r
Oct.
Nov.
1981
D ec.
Jan. r
Feb. r
Seasonally adjusted
M ea sur e s1
1
2
3
4
5
M -1A ........................................................
M -1B ........................................................
M - 2 ..........................................................
M - 3 ..........................................................
L2 ..............................................................
6
7
8
9
10
Currency.................................................
Dem and deposits..................................
Savings deposits....................................
Small-denomination time deposits3
Large-denomination time deposits4
328.4
332.6
1.294.1
1,460.3
1.720.2
351.6
360.1
1.401.5
1.623.6
1,934.9
369.8
386.9
1,526.0
1,775.5
2,151.8
384.4
411.3
1,668.7
1.952.2
2.365.3
386.4
411.6
1,653.6
1.920.0
2.317.0
388.2
414.7
1,667.1
1,941.0
2,346.7
384.4
411.3
1,668.7
1.952.2
2.365.3
373.3
416.0
1,681.7
1,978.6
2,398.2
366.6
419.0
1.695.4
1.996.4
2,421.2
365.0
422.9
1,713.8
2 , 011 .6
n.a.
88.7
239.7
486.4
454.9
145.2
97.6
253.9
475.8
533.8
194.7
106.3
263.5
417.0
656.2
219.0
116.2
268.2
393.8
759.0
247.0
114.9
271.5
408.8
726.5
231.0
115.6
272.6
406.8
739.3
237.4
116.2
268.2
393.8
759.0
247.0
116.6
256.7
377.7
777.9
258.1
117.3
249.3
370.5
785.1
263.1
117.9
247.1
367.5
791.2
262.1
C om ponents
Not seasonally adjusted
M easures 1
11
12
13
14
15
M -l A ...................................................................
M -1B ..................................................................
M - 2 .....................................................................
M - 3 .....................................................................
L2 .........................................................................
16
17
18
19
20
21
22
23
Currency............................................................
Demand deposits............................................
Other checkable deposits5 ...........................
Overnight RPs and Eurodollars6 .............
M oney market mutual funds......................
Savings deposits...............................................
Small-denomination time deposits3 .........
Large-denomination time deposits4 .........
337.2
341.4
1,295.9
1,464.5
1,723.2
360.9
369.5
1,403.6
1,629.2
1,938.3
379.4
396.4
1,527.7
1,780.8
2,154.3
394.7
421.8
1,674.7
1,962.8
2,372.0
388.0
413.7
1,656.9
1,923.1
2,318.0
391.1
417.7
1,665.7
1,942.1
2,344.7
394.7
421.8
1,674.7
1,962.8
2,372.0
377.3
420.6
1,684.7
1,984.3
2,401.2
358.2
409.4
1,685.0
1,988.3
2,414.4
358.3
415.1
1,708.8
2,009.3
n.a.
90.3
247.0
4.2
18.6
3.8
483.1
451.3
147.7
99.4
261.5
8.6
23.9
10.3
472.6
529.8
198.2
108.3
271.2
17.0
25.3
43.6
414.1
651.2
222.6
118.5
276.2
27.1
32.2
75.8
390.9
757.4
251.5
114.9
273.1
25.7
32.5
77.4
412.9
723.7
230.7
116.6
274.5
26.6
32.6
77.0
405.8
735.9
240.0
118.5
276.2
27.1
32.2
75.8
390.9
757.4
251.5
115.8
261.5
43.3
32.5
80.7
374.9
779.1
260.7
115.9
242.3
51.2
31.6
92.4
365.3
789.5
265.4
116.8
241.4
56.8
29.8
105.6
364.9
796.6
264.7
C omponents
1. Composition of the m oney stock measures is as follows:
M-1A: Averages o f daily figures for (1) demand deposits at all commercial banks
other than those due to dom estic banks, the U .S . government, and foreign banks
and official institutions less cash items in the process o f collection and Federal
Reserve float; and (2) currency outside the Treasury, Federal Reserve Banks, and
the vaults of commercial banks.
M-1B: M -1A plus negotiable order o f withdrawal (NO W ) and automatic transfer
service (ATS) accounts at banks and thrift institutions, credit union share draft
accounts, and demand deposits at mutual savings banks.
M-2: M-1B plus savings and small-denomination time deposits at all depository
institutions, overnight repurchase agreements at commercial banks, overnight Eu
rodollars held by U .S. residents other than banks at Caribbean branches o f member
banks, and money market mutual fund shares.
M-3: M-2 plus large-denomination time deposits at all depository institutions
and term RPs at commercial banks and savings and loan associations.
2. L: M-3 plus other liquid assets such as term Eurodollars held by U .S. residents
other than banks, bankers acceptances, commercial paper, Treasury bills and other
liquid Treasury securities, and U .S. savings bonds.
3. Small-denomination time deposits are those issued in amounts o f less than
$100,000.
4. Large-denomination time deposits are those issued in amounts o f $100,000
or more and are net of the holdings of domestic banks, thrift institutions, the U .S.
government, money market mutual funds, and foreign banks and official institu
tions.
5. Includes ATS and NO W balances at all institutions, credit union share draft
balances, and demand deposits at mutual savings banks.
6. Overnight (and continuing contract) RPs are those issued by commercial
banks to the nonbank public, and overnight Eurodollars are those issued by Ca
ribbean branches of member banks to U .S . nonbank customers.
N o te . Latest monthly and weekly figures are available from the Board’s H .6(508)
release. Back data are available from the Banking Section, D ivision o f Research
and Statistics. The monetary aggregates and their components have been revised
due to new seasonal adjustment factors
A14
1.22
Domestic Financial Statistics □ May 1981
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS' AND MEMBER BANK DEPOSITS
Billions of dollars, averages of daily figures
1980
Item
1978
Dec.
1979
Dec.
1981
1980
Dec.
Sept.
Oct.
N ov.2
D ec.
Jan.
Feb.
Mar.
Seasonally adjusted
1 Total reserves3 .............................................................................................................
41.16
43.46
40.13
41.52
41.73
41.23
40.13
40.10
39.76
40.25
2 Nonborrowed reserves.............................................................................................
3 Required reserves......................................................................................................
4 Monetary base4 ...........................................................................................................
40.29
40.93
142.2
41.98
43.13
153.7
38.44
39.58
159.8
40.21
41.26
159.5
40.42
41.52
160.9
39.17
40.73
160.7
38.44
39.58
159.8
38.70
39.56
160.1
38.45
39.58
160.6
39.25
39.87
161.3
5 Member bank deposits subject to reserve requirements5 .............................
6 Time and savings............. .......................................................................................
Demand
7
Private........................................................................................................................
8
U .S. governm ent....................................................................................................
616.1
428.7
644.5
451.2
701.8
485.6
678.2
482.0
684.7
485.5
694.3
475.4
701.8
485.6
703.8
517.4
704.3
523.3
703.6
524.7
185.1
2.2
191.5
1.8
196.0
1.9
194.5
1.8
195.6
2.4
198.1
2.2
196.0
1.9
184.1
2.3
178.9
2.1
176.8
2.0
161.5
162.5
158.9
159.6
701.5
703.1
Not seasonally adjusted
9 Monetary base4 ...........................................................................................................
144.6
156.2
162.5
58.0
10 Member bank deposits subject to reserve requirements5 .............................
624.0
652.7
710.3
675.6
684.2
694.6
710.3
712.6
11 Time and savings........................................................................................................
Demand
12
Private........................................................................................................................
13
U.S. government....................................................................................................
429.6
452.1
486.5
479.6
485.7'-
493.0r
505.0'-
520.5'-
524.8r
527.9
191.9
2.5
198.6
2.0
203.2
2.1
193.9
2.1
196.4
2.1
199.6
1.9
203.2
2.1
189.9
2.1
174.6
2.0
173.2
2.1
1.
Reserves of depository institutions series reflect actual reserve requirement
rcentages with no adjustment to eliminate the effect of changes in Regulations
and M. Before Nov. 13, 1980, the date of implementation of the Monetary
Control Act, only the reserves of commercial banks that were members of the
Federal Reserve System were included in the series. Since that date the series
include the reserves of all depository institutions. In conjunction with the imple
mentation of the act, required reserves of member banks were reduced about $4.3
billion and required reserves of other depository institutions were increased about
$1.4 billion. Effective Oct. 11, 1979, an 8 percentage point marginal reserve re
quirement was imposed on “Managed Liabilities.” This action raised required
reserves about $320 million. Effective Mar. 12, 1980, the 8 percentage point mar
ginal reserve requirement was raised to 10 percentage points. In addition the base
upon which the marginal reserve requirement was calculated was reduced. This
action increased required reserves about $1.7 million in the week ending Apr. 2,
1980. Effective May 29, 1980, the marginal reserve requirement was reduced from
10 to 5 percentage points and the base upon which the marginal reserve requirement
was calculated was raised. This action reduced required reserves about $980 million
in the week ending June 18, 1980. Effective July 24, 1980, the 5 percent marginal
reserve requirement on managed liabilities and the 2 percent supplementary reserve
requirement against large time deposits were removed. These actions reduced
required reserves about $3.2 billion.
159.0
160.6
2. Reserve measures for November reflect increases in required reserves asso
ciated with the reduction of weekend avoidance activities of a few large banks.
The reduction in these activities lead to essentially a one-time increase in the
average level of required reserves that need to be held for a given level of deposits
entering the money supply. In Novem ber, this increase in required reserves is
estimated at $550 to $600 million.
3. Reserve balances with Federal Reserve Banks plus vault cash at institutions
with required reserve balances plus vault cash equal to required reserves at other
institutions.
4. Includes reserve balances at Federal Reserve Banks in the current week plus
vault cash held two weeks earlier used to satisfy reserve requirements at all
depository institutions plus currency outside the U .S. Treasury, Federal Reserve
Banks, the vaults of depository institutions, and surplus vault cash at depository
institutions.
5. Includes total time and savings deposits and net demand deposits as defined
by Regulation D. Private demand deposits include all demand deposits except
those due to the U.S. government, less cash items in process of collection and
demand balances due from domestic commercial banks.
N o t e . Latest monthly and weekly figures are available from the Board’s H .3(502)
statistical release. Back data and estimates of the impact on required reserves and
changes in reserve requirements are available from the Banking Section, Division
of Research and Statistics.
Monetary Aggregates
1.23
LOANS AND SECURITIES
A 15
All Commercial Banks'
Billions of dollars; averages of Wednesday figures
1981
1981
Category
1978
D ec.
1979
Dec.
1980
D ec.
1978
Dec.
Feb.
1979
Dec.
1980
D ec.
Mar.
Feb.
Seasonally adjusted
Mar.
Not seasonally adjusted
1 Total loans and securities2 ..............................
1,013.43
1,134.6“
1,237.3
1,262.95
1,262.1
1,022.53
1,145.(H
1,248.9
1,250.95
1,255.9
2 U .S. Treasury securities......................................
3 Other securities.....................................................
4 Total loans and leases2........................................
5
Commercial and industrial lo a n s ................
6
Real estate loan s...............................................
7 Loans to individuals........................................
8
Security loans......................................................
9
Loans to nonbank financial institutions ..
10
Agricultural lo a n s.............................................
11
Lease financing receivables...........................
12
All other loans...................................................
93.3
173.23
746.93
246.16
210.5
164.7
19.3
27.17
28.2
7.5
43.63
93.8
191.8
848.94
291.I4
241.34
184.9
18.6
28.84
31.1
9.3
44.0
110.7
213.9
912.7
324.9
260.6
175.2
17.6
28.7
31.6
10.9
63.4
115.3
217.2
930.35
331.55
264.75
174.3
18.2
28.95
32.2
11.9
68.8
114.9
218.2
929.0
332.3
266.6
174.6
18.6
28.7
32.6
11.9
63.7
94.5
173.93
754.23
247.76
210.9
165.6
20.6
27.67
28.1
7.5
46.23
95.0
192.6
857.44
293.04
241.84
186.0
19.8
29.34
30.9
9.3
47.3
112.1
214.8
922.1
327.0
261.1
176.2
18.8
29.2
31.4
10.9
67.5
116.1
216.1
918.75
327.85
263.65
172.7
17.8
28.35
31.6
11.9
65.1
117.1
217.5
921.2
330.4
265.0
172.0
18.5
28.1
32.0
11.9
63.3
M em o :
13 Total loans and securities plus loans sold2-9
14 Total loans plus loans sold2 9 ...........................
15 Total loans sold to affiliates9 ...........................
16 Commercial and industrial loans plus loans
sold9...................................................................
17
Commercial and industrial loans sold9 . . .
18
Acceptances h e l d .............................................
19
Other commercial and industrial lo a n s. . .
20
To U .S. addressees11.................................
21
To non-U .S. addressees.............................
22 Loans to foreign b a n k s ......................................
1,017.13
1,137.64*
1,240.0
1,265.75
1,264.8
1,026.23
1,148.(H8
1,251.6
1,253.75
1,258.6
750.63
3.7
851.94.8
3.08
915.5
2.7
933.15
2.8
931.7
2.8
757.93
3.7
860.44.8
3.08
924.8
2.7
921.55
2.8
924.0
2.8
248.06-io
1.9^0
6.6
239.5
226.0
13.5
21.5
293.14.8
2.08
8.2
282.9
264.1
18.8
18.5
326.6
1.8
8.1
316.7
295.2
21.5
23.2
333.45
1.9
9.0
322.5
297.6
24.9
24.6
334.1
1.9
8.8
323.5
297.9
25.6
22.8
249.66.io
1.910
7.3
240.4
225.9
14.5
23.2
295.04.8
2.08
9.1
283.9
264.1
19.8
20.0
328.8
1.8
8.8
318.2
295.2
23.0
24.9
329.75
1.9
8.9
319.0
294.1
24.9
23.1
332.2
1.9
8.8
321.5
296.3
25.2
22.2
1. Includes domestically chartered banks; U .S. branches and agencies o f foreign
banks, New York investment companies majority owned by foreign banks, and
Edge Act corporations owned by domestically chartered and foreign banks.
2. Excludes loans to commercial banks in the United States.
3. A s of D ec. 31, 1978, total loans and securities were reduced by $0.1 billion.
“Other securities” were increased by $1.5 billion and total loans were reduced by
$1.6 billion largely as the result o f reclassifications o f certain tax-exempt obligations.
Most of the loan reduction was in “all other loans.”
4. A s of Jan. 3, 1979, as the result o f reclassifications, total loans and securities
and total loans were increased by $0.6 billion. Business loans were increased by
$0.4 billion and real estate loans by $0.5 billion. Nonbank financial loans were
reduced by $0.3 billion.
5. Absorption of a nonbank affiliate by a large commercial bank added the
following to February figures: total loans and securities, $1.0 billion; total loans
and leases, $1.0 billion; commercial and industrial loans, $.5 billion; real estate
loans, $.1 billion; nonbank financial, $.1 billion.
6. A s of D ec. 31,1978, commercial and industrial loans were reduced $0.1 billion
as a result of reclassifications.
7. A s of D ec. 31, 1978, nonbank financial loans were reduced $0.1 billion as
the result of reclassification.
8. A s of D ec. 1, 1979, loans sold to affiliates were reduced $800 million and
commercial and industrial loans sold were reduced $700 million due to corrections
of two banks in New York City.
9. Loans sold are those sold outright to a bank’s own foreign branches, non
consolidated nonbank affiliates of the bank, the bank’s holding company (if not a
bank), and nonconsolidated nonbank subsidiaries o f the holding company.
10. A s of D ec. 31, 1978, commercial and industrial loans sold outright were
increased $0.7 billion as the result o f reclassifications, but $0.1 billion o f this amount
was offset by a balance sheet reduction o f $0.1 billion as noted above.
11. United States includes the 50 states and the District o f Columbia.
N o t e . Data are prorated averages o f W ednesday estimates for domestically
chartered banks, based on weekly reports o f a sample o f domestically chartered
banks and quarterly reports o f all domestically chartered banks. For foreign related
institutions, data are averages o f month-end estimates based on weekly reports
from large agencies and branches and quarterly reports from all agencies, branches,
investment companies, and Edge Act corporations engaged in banking.
A16
1.24
Domestic Financial Statistics □ May 1981
MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS >
Monthly averages, billions of dollars
Decem ber outstanding
Outstanding in 1980 and 1981
Source
1977
1
2
3
4
5
6
Total nondeposit funds
Seasonally adjusted2 ...............................................
Not seasonally adjusted..........................................
Federal funds, RPs, and other borrowings from
non-banks3
Seasonally a d ju ste d .................................................
Not seasonally adjusted..........................................
Net balances due to foreign-related institutions,
not seasonally adjusted......................................
Loans sold to affiliates, not seasonally
adjusted4-5 ..............................................................
M emo
7 Domestically chartered banks net positions with
own foreign branches, not seasonally
adjusted6 ................................................................
8
Gross due from balances........................................
9
Gross due to balan ces............................................
10 Foreign-related institutions net positions with
directly related institutions, not seasonally
adjusted7 ................................................................
11
Gross due from balances........................................
12
Gross due to b alan ces.............................................
13
14
15
16
17
18
Security RP borrowings
Seasonally ad ju sted *...............................................
Not seasonally adjusted..........................................
U.S. Treasury demand balances9
Seasonally ad ju sted .................................................
Not seasonally adjusted..........................................
Time deposits, $100,000 or m ore10
Seasonally a d ju sted .................................................
Not seasonally adjusted..........................................
1978
1979
July
Aug.
Sept.
Oct.
Nov.
D ec.
Jan.
Feb.
61.5
60.1
91.2
90.2
121 .1
119.8
114.6
118.6
109.4
112.3
114.0
114.5
119.9
120.8
116.4
119.6
120.3
119.8
125.8
123.3
124.3
123.5
119.8
119.5
58.4
57.0
80.7
79.7
90.0
88.7
100.9
104.9
96.2
99.1
102.2
102.7
105.7
106.6
104.9
108.1
109.4
108.9
114.7
112.2
113.1
112.3
113.2
112.9
- 1 .5
6.8
28.1
10.9
10.3
8.9
11.4
8 .9'
8.2 '
8.3
8 .4 '
3.8
4.7
3.7
3.0
2.8
2.9
2.9
2.8
2.6
2.7
2.8
2.8
2.8
10 .2
-1 4 .2
37.2
23.0
-1 4 .7
37.5
22.7
-1 6 .2
37.4
21.2
-1 4 .8
36.4
21.6
- 1 7 .0
39.0
21.9
-1 2 .5
8.6
24.9
14.7
6.5
22.8
29.3
- 8 .4
32.7
24.3
-1 0 .3
35.8
25.5
-1 4 .5
38.2
23.7
-1 2 .9
38.3
25.5
10.9
10.7
21.7
17.0
14.3
31.3
21.6
28.9
50.5
19.3
30.8
50.1
20.6
30.9
51.6
23.3
30.3
53.6
24.3
30.8
55.2
23.1'
31.0'
54.1'
22.9'
32.5'
55.4
24.5
31.4
55.9
23.1
31.7
54.8
20.9
31.7
52.6
36.0
35.1
44.8
43.6
49.2
47.9
55.0
54.7
57.5
59.1
56.2
58.7
59.7
59.5
58.8
60.9
63.4
61.7
68.7
65.0
67.0
65.2
67.1
65.8
4.4
5.1
8.7
10.3
8 .9'
9.7
10.4'
9.3
11.3'
9.3
11.3'
14.2
11.7'
12.7
162.0
165.4
213.0
217.9
227.1'
232.8
235.7'
230.0
237.1'
232.1
240.3'
236.7
242.0'
241.1
21.1
-
1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks. New
York investment companies majority owned by foreign banks, and Edge Act cor
porations owned by domestically chartered ana foreign banks.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. In
cludes averages of Wednesday data for domestically chartered banks and averages
of current and previous month-end data for foreign-related institutions.
3. Other borrowings are borrowings on any instrument, such as a promissory
note or due bill, given for the purpose o f borrowing money for the banking business.
This includes borrowings from Federal Reserve Banks and from foreign banks,
term federal funds, overdrawn due from bank balances, loan RPs, and participa
tions in pooled loans. Includes averages of daily figures for member banks and
averages of current and previous month-end data for foreign-related institutions.
4. Loans initially booked by the bank and later sold to affiliates that are still
held by affiliates. Averages of Wednesday data.
5. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million due to
corrections of two New York City banks.
'
8.3'
9.0
6 .9 '
7.9
8 .1 '
8.1
11 .6
247.8'
250.8
257.0'
263.4
268.0'
272.8
272.5'
276.8
270.2
274.8
8. 1
6.6
10.2
6. Averages of daily figures for member and nonmember banks. Before October
1980 nonmember banks were interpolated from quarterly call report data.
7. Includes averages of current and previous month-end data until August 1979;
beginning September 1979 averages of daily data.
8. Based on daily average data reported by 122 large banks beginning February
1980 and 46 banks before February 1980.
9. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
10. Averages of Wednesday figures.
N o t e . Movement of federal funds, RPs, and other borrowings from nonbanks,
(lines 3 and 4) is based on fluctuations in security RP borrowings (lines 13 and 14).
In addition, lines 15 and 17 have been revised because of new seasonal factors.
Commercial Banks
1.25
ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
A17
Last-Wednesday-of-Month Series
Billions of dollars except for number of banks
1980
1981
Account
June
July
Aug.
Sept.
Oct.
Nov.
D ec.
Jan.
Feb.
Mar.
Apr.
D omestically C hartered
C ommercial B anks 1
1 Loans and investm ents, excluding
in te r b a n k .................................................
2 Loans, excluding interbank.........................
3
Commercial and in d u stria l....................
4
O ther..............................................................
5 U .S. Treasury securities...............................
6 Other securities...............................................
1,090.5
793.2
256.9
536.4
96.2
201.1
1,095.3
793.4
257.1
536.3
98.7
203.3
1,108.5
801.9
259.5
542.4
101.4
205.2
1,117.9
809.1
263.9
545.2
103.2
205.6
1,134.8
821.6
269.0
552.6
104.4
208.9
1,150.8
832.8
275.7
557.1
107.1
210.9
1,177.1
851.4
281.5
569.9
111.2
214.6
1,166.0
840.2
277.6
562.6
112.0
213.8
1,167.0
839.0
276.3
562.7
113.7
214.3
1,169.7
840.8
277.7
563.1
112.8
216.2
1,187.8
855.4
285.4
570.1
115.8
216.6
7 Cash assets, total.............................................
8
Currency and coin......................................
9
Reserves with Federal Reserve Banks
10
Balances with depository institutions .
11
Cash items in process of collection . . .
150.6
17.3
29.5
45.8
58.1
154.3
17.5
32.2
45.0
59.6
148.8
18.2
29.0
45.9
55.8
156.6
17.8
31.1
46.8
60.9
155.9
18.3
31.7
47.2
58.8
175.6
16.9
30.4
56.1
72.2
194.2
19.9
28.2
63.0
83.0
159.3
18.7
25.2
54.9
60.5
165.9
18.6
30.4
54.6
62.3
166.4
17.8
31.7
53.6
63.3
181.8
18.8
38.3
57.3
67.4
12 Other assets2 ...................................................
143.8
143.5
150.3
154.4
151.3
151.3
165.6
155.8
160.1
164.9
167.7
13 Total assets/total liabilities and capital...
1,384.9
1393.1
1,407.7
1,428.9
1,442.1
1,477.7
1,537.0
1,481.0
1,493.0
1,501.1
1,537.3
15
16
17
D e m a n d ........................................................
S a v in g s..........................................................
T im e ...............................................................
1,048.1
358.1
197.7
492.4
1,053.1
363.5
205.5
484.2
1,062.8
363.4
208.5
490.9
1,077.2
369.7
209.1
498.5
1,092.9
375.7
210.9
506.2
1,126.2
393.0
209.5
523.7
1,187.4
432.2
201.3
553.8
1,128.7
351.1
211.9
565.7
1,132.0
345.5
214.3
572.3
1,136.7
345.4
220.6
570.7
1,151.7
356.8
222.7
572.2
18 Borrowings........................................................
19 Other liab ilities...............................................
20 Residual (assets less liabilities)..................
151.0
75.9
109.8
157.0
74.0
109.0
158.5
75.4
111.0
163.7
75.6
112.3
161.7
74.7
112.7
157.3
78.1
116.1
156.4
79.0
114.2
156.4
76.7
119.3
163.2
80.3
117.5
163.7
80.7
120.0
179.5
81.8
124.3
M emo :
21 U .S. Treasury note balances included in
borrowing.................................................
22 Number of b a n k s ..........................................
13.3
14,646
7.6
14,658
8.7
14,666
15.7
14,678
11.5
14,760
4.4
14,692
10.2
14,693
9.5
14,689
8.5
14,696
10.2
14,701
16.9
14,713
n. a.
n. a.
n. a.
n .a.
A ll C ommercial B anking
Institutions3
23 Loans and investm ents, excluding
in te r b a n k .................................................
24 Loans, excluding interbank.........................
25
Commercial and in d u stria l....................
26
O ther..............................................................
27 U .S. Treasury securities...............................
28 Other secu rities...............................................
1,161.0''
860.2
297.8'
562.4'
98.3
202.5
1,194.3'
881.5'
308.1
573.4'
105.6
207.2
1,262.4'
932.5
330.6
601.9
113.6'
216.3
29 Cash assets, total.............................................
30
Currency and coin......................................
31
Reserves with Federal Reserve Banks
32
Balances with depository institutions .
33
Cash items in process of collection . . .
172.2
17.3
30.3
6 4.9'
59.7
178.2'
17.8
31.6'
66.4'
62.4'
218.6
20.0'
29.0'
85.0'
84.7
n. a.
n. a.
n. a.
n. a.
34 Other assets2 ...................................................
191.0
204.3'
222.7'
35 Total assets/total liabilities and capital...
1,524.3'
1,576.8'
1,703.7'
36 D e p o s its ............................................................
37
D e m a n d ........................................................
38
S a v in g s..........................................................
39
T i m e ..............................................................
1,091.6'
378.9'
198.1
514.7'
1,122.1'
388.8'
209.5
523.9'
1,239.9
453.6
201.6
584.7
40 Borrowings........................................................
41 Other liab ilities...............................................
42 Residual (assets less liabilities)..................
197.6
123.6'
111.4
211.0
129.7'
113.9
210.4'
135.5
117.9'
M emo :
43 U .S. Treasury note balances included in
borrowing.................................................
44 Number of b a n k s ..........................................
13.3
15,037'
15.7
15,084'
9 .5 '
15,120'
1. Dom estically chartered commercial banks include all commercial banks in the
United States except branches o f foreign banks; included are member and nonmember banks, stock savings banks, and nondeposit trust companies.
2. Other assets include loans to U .S. commercial banks.
3. Commercial banking institutions include domestically chartered commercial
banks, branches and agencies of foreign banks, Edge A ct and Agreem ent corpo
rations, and New York State foreign investment corporations.
N o t e . Figures are partly estimated. They include all bank-premises subsidiaries
and other significant majority-owned domestic subsidiaries. Data for domestically
chartered commercial banks are for the last W ednesday o f the month; data for
other banking institutions are for last W ednesday except at end of quarter, when
they are for the last day of the month.
A18
Domestic Financial Statistics □ May 1981
1.26 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $750 Million or More on
December 31, 1977, Assets and Liabilities
Millions of dollars, Wednesday figures
1981
Account
Mar. 4
Mar. 11
Mar. 18
Mar. 25
Apr.
Ip
Apr. 8 p
Apr. 15 p
Apr. 22 p
Apr. 2 9 p
1 Cash items in process o f collection....................................
2 Dem and deposits due from banks in the U nited
S ta te s. . ..............................................................................
3 A ll other cash and due from depository institutions..
57,382
53,553
55,438
52,064
60,595
53,422
62,801
55,985
55,513
20,717
30,543
19,908
30,776
21,720
33,998
19,620
35,225
21,632
31,893
19,832
31,794
21,235
35,502
18,794
38,058
19,503
42,589
4 Total loans and securities................................................
558,629
553,421
555,505
551,056
564,930
559,173
563,475
559,650
558,811
Securities
U .S . Treasury secu rities........................................................
Trading account...................................................................
Investment account, by m a tu rity .................................
One year or less..............................................................
Over one through five y e a r s ......................................
Over five years.................................................................
Other secu rities.......................................................................
Trading account...................................................................
Investment account............................................................
U .S . government ag en cies..........................................
States and political subdivision, by m a tu r ity ___
One year or less..........................................................
Over one y e a r ............................................................
Other bonds, corporate stocks and securities-----
42,629
8,557
34,072
9,051
21,359
3,662
78,043
3,389
74,654
16,167
55,690
7,130
48,560
2,797
41,986
7,843
34,143
9,254
21,236
3,654
77,462
2,860
74,601
16,109
55,731
7,208
48,522
2,761
41,233
7,429
33,804
9,178
21,012
3,614
77,417
2,882
74,535
16,072
55,670
7,160
48,510
2,793
39,577
6,017
33,561
9,074
20,855
3,631
77,360
2,735
74,626
16,104
55,711
7,229
48,482
2,810
41,764
7,865
33,898
9,650
20,677
3,571
78,383
3,637
74,745
16,513
55,394
7,048
48,346
2,838
41,786
7,247
34,539
10,094
20,520
3,926
77,697
2,976
74,720
16,506
55,397
7,122
48,275
2,817
41,021
6,300
34,720
10,143
20,651
3,926
77,418
2,747
74,670
16,356
55,472
7,172
48,299
2,843
40,718
6,023
34,695
10,078
20,666
3,951
77,555
2,768
74,787
16,369
55,546
7,208
48,338
2,872
39,720
5,440
34,280
9,997
20,447
3,836
77,514
2,671
74,843
16,395
55,558
7,243
48,315
2,890
28,511
20,516
6,224
1,771
422,059
169,929
3,865
166,064
159,067
6,997
113,733
71,062
28,561
21,096
5,643
1,822
418,085
168,912
3,658
165,255
158,294
6,960
113,946
70,848
29,965
21,504
6,487
1,973
419,606
169,582
3,544
166,037
158,972
7,066
114,165
70,788
27,592
19,916
5,947
1,729
419,184
169,682
3,668
166,014
158,873
7,141
114,249
70,774
30,531
21,216
7,552
1,762
425,893
172,830
4,570
168,260
160,780
7,480
114,471
70,216
30,268
21,700
6,660
1,907
421,179
171,252
4,267
166,985
159,817
7,168
114,552
70,058
32,661
23,696
7,087
1,877
424,138
171,090
4,184
166,907
159,829
7,077
114,784
70,229
29,867
21,014
6,792
2,062
423,316
172,365
4,388
167,977
160,929
7,048
115,076
70,493
26,696
17,853
6,605
2,238
426,707
174,661
4,550
170,111
162,925
7,186
115,358
70,607
4,634
8,637
9,675
15,178
6,385
2,247
5,432
15,145
6,589
6,024
409,446
10,025
88,167
4,502
8,554
9,414
14,959
5,341
2,269
5,426
13,912
6,626
6,046
405,412
10,033
89,840
4,664
8,396
9,530
14,930
5,972
2,257
5,431
13,891
6,656
6,059
406,890
10,032
85,389
4,461
8,529
9,588
14,998
5,123
2,252
5,401
14,125
6,681
5,977
406,526
10,040
87,652
4,932
8,557
9,525
15,227
7,803
2,351
5,498
14,481
5,733
5,907
414,253
10,120
93,605
4,881
8,647
9,650
15,061
5,664
2,365
5,502
13,546
5,810
5,946
409,423
10,130
91,970
5,114
8,395
9,663
15,255
6,814
2,374
5,567
14,852
5,809
5,953
412,376
10,112
91,003
4,688
8,283
9,674
14,963
6,107
2,369
5,561
13,735
5,833
5,973
411,509
10,145
92,756
4,907
8,056
10,095
15,243
6,351
2,339
5,589
13,499
5,840
5,986
414,881
10,154
91,531
765,464
757,531
762,083
755,657
782,776
766,322
784,128
775,387
778,102
195,703
645
132,047
4,708
3,266
38,359
7,150
1,930
7,597
319,484
76,702
72,654
191,191
658
131,054
4,173
2,109
36,361
8,245
1,614
6,978
320,514
76,718
72,715
191,786
595
129,448
4,748
3,122
37,389
7,616
1,632
7,234
322,278
77,001
73,052
182,968
549
125,203
4,479
1,662
34,794
7,841
1,287
7,151
321,059
77,415
73,410
206,625
774
139,814
4,946
1,005
38,663
8,797
1,940
10,686
321,801
79,344
75,245
192,308
737
131,582
4,235
1,986
36,020
7,650
1,944
8,153
321,934
80,846
76,733
213,752
731
140,674
5,428
7,846
39,412
8,802
2,043
8,814
322,957
81,139
77,063
191,894
581
131,652
4,539
2,864
34,011
8,306
1,966
7,975
323,343
79,891
75,904
189,015
599
128,838
4,456
2,881
33,028
8,561
1,987
8,664
322,986
77,893
73,883
3,396
635
17
242,782
207,722
20,692
299
8,014
3,412
573
18
243,796
208,737
20,641
296
8,058
3,353
576
21
245,277
210,207
20,394
276
8,182
3,414
572
19
243,644
208,647
20,286
282
8,119
3,450
631
18
242,457
208,370
19,672
282
7,849
3,486
607
20
241,088
207,317
19,656
283
7,741
3,400
661
16
241,818
208,237
19,590
264
7,730
3,379
590
18
243,452
209,625
19,752
228
7,835
3,396
597
17
245,092
211,051
19,924
228
7,833
6,055
6,064
6,218
6,310
6,283
6,090
5,9%
6,011
6,057
1,276
2,457
131,759
92
1,718
129,673
1,482
6,989
125,642
2,504
7,716
125,194
1,122
8,901
128,985
138
1,871
136,349
2,739
660
130,642
741
11,468
131,347
7,478
12,449
128,742
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Loans
19 Federal funds sold1 .................................................................
20
To commercial b a n k s ........................................................
21
To nonbank brokers and dealers in se cu ritie s.........
22
To others................................................................................
23 Other loans, g r o ss...................................................................
24
Commercial and industrial...............................................
25
Bankers acceptances and commercial paper.........
26
All o th e r ............................................................................
27
U .S . ad dressees..........................................................
28
N on-U .S. addressees.................................................
29 Real e s t a t e ................................................................................
30
To individuals for personal exp en d itu res..................
To financial institutions
31
Commercial banks in the U nited S ta te s ................
32
Banks in foreign countries..........................................
33
Sales finance, personal finance companies, etc ..
34
Other financial institutions..........................................
35
To nonbank brokers and dealers in se cu ritie s.........
36
To others for purchasing and carrying securities2 ..
37
To finance agricultural......................................................
38
A ll o th e r ................................................................................
39 L ess: Unearned in c o m e ........................................................
40
Loan loss reserve........................................................
41 Other loans, n et.......................................................................
42 Lease financing receivab les.................................................
43 All other a s s e t s .......................................................................
44 Total assets........................................................................
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
Deposits
Dem and dep osits.....................................................................
Mutual savings b a n k s........................................................
Individuals, partnerships, and corporations.............
States and political su b d iv isio n s....................................
U .S . governm ent.................................................................
Commercial banks in the U nited S t a te s ....................
Banks in foreign countries...............................................
Foreign governments and official institutions...........
Certified and officers’ c h e c k s ........................................
Tim e and savings d e p o sits...................................................
Savings.....................................................................................
Individuals and nonprofit o rg a n iza tio n s................
Partnerships and corporations operated for
p r o f it ..........................................................................
D om estic governmental u n it s ....................................
A ll o th e r ............................................................................
T im e.........................................................................................
Individuals, partnerships, and corporations.........
States and political su b d iv isio n s...............................
U .S. governm ent............................................................
Commercial banks in the United S t a te s ................
Foreign governments, official institutions, and
banks .........................................................................
Liabilities for borrowed money
Borrowings from Federal Reserve B a n k s..................
Treasury tax-and-loan n o t e s ..........................................
A ll other liabilities for borrowed m oney3 ..................
Other liabilities and subordinated notes and
debentures..........................................................................
63,601
63,237
62,873
65,138
63,839
62,213
62,056
65,377
66,309
70 Total liabilities..................................................................
714,280
706,425
711,052
704,579
731,273
714,812
732,806
724,168
726,979
71 Residual (total assets minus total liabilities)4 ................
51,184
51,105
51,031
51,078
51,503
51,510
51,322
51,219
51,123
1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets o f $1 billion or
more on D ec. 31, 1977, see table 1.13.
4.
This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
Weekly Reporting Banks
1.27
A 19
LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1 Billion or More on
December 31, 1977, Assets and Liabilities
Millions of dollars, Wednesday figures
A ccount
Mar. 4
Mar. 11
Mar. 18
Mar. 25
Apr. 1 p
Apr. 8 p
Apr. 15 p
Apr. 22 p
Apr. 2 9 p
1 Cash items in process of collection....................................
2 Dem and deposits due from banks in the United
States ..................................................................................
3 All other cash and due from depository institutions..
54,290
50,696
52,735
49,358
57,592
50,624
59,301
52,571
52,330
19,971
28,620
19,224
28,706
20,996
31,782
19,002
32,847
20,841
29,704
19,151
29,842
20,468
33,478
18,054
35,443
18,854
39,933
4 Total loans and securities................................................
521,375
516,001
518,109
514,143
527,294
521,346
525,504
522,122
521,872
Securities
U .S. Treasury secu rities........................................................
Trading account...................................................................
Investment account, by m a tu rity .................................
One year or less...............................................................
Over one through five y e a r s ......................................
Over five years.................................................................
Other se cu ritie s........................................................................
Trading account...................................................................
Investment a ccou n t............................................................
U .S . government ag en cies..........................................
States and political subdivision, by m a tu r ity ___
One year or less..........................................................
Over one y e a r ............................................................
Other bonds, corporate stocks and secu rities.. . .
39,636
8,473
31,163
8,306
19,554
3,302
71,579
3,326
68,252
14,907
50,717
6,323
44,395
2,628
38,984
7,787
31,197
8,523
19,384
3,290
70,983
2,792
68,192
14,851
50,748
6,396
44,352
2,592
38,160
7,348
30,812
8,461
19,108
3,243
70,956
2,821
68,134
14,821
50,690
6,338
44,351
2,623
36,393
5,922
30,471
8,376
18,838
3,257
70,902
2,668
68,234
14,881
50,714
6,398
44,316
2,639
38,420
7,748
30,672
8,958
18,518
3,196
72,011
3,553
68,458
15,238
50,553
6,358
44,195
2,667
38,386
7,150
31,235
9,393
18,297
3,545
71,353
2,900
68,454
15,227
50,580
6,443
44,136
2,647
37,622
6,204
31,418
9,439
18,428
3,552
71,152
2,679
68,473
15,142
50,659
6,489
44,170
2,672
37,276
5,933
31,342
9,299
18,467
3,577
71,281
2,699
68,582
15,159
50,722
6,516
44,207
2,701
36,264
5,370
30,894
9,183
18,250
3,461
71,251
2,583
68,668
15,199
50,750
6,541
44,209
2,218
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Loans
19 Federal funds sold1 .................................................................
20
To commercial b a n k s ........................................................
21
To nonbank brokers and dealers in secu rities.........
22
To others................................................................................
23 Other loans, g r o ss...................................................................
24
Commercial and industrial...............................................
25
Bankers acceptances and commercial paper.........
26
A ll o th e r ............................................................................
27
U .S . ad d ressees..........................................................
28
N on-U .S. addressees.................................................
29
Real e s ta t e ............................................................................
30
To individuals for personal ex p en d itu res..................
To financial institutions
31
Commercial banks in the United S t a te s ................
32
Banks in foreign countries..........................................
33
Sales finance, personal finance companies, etc ..
34
Other financial institutions..........................................
35
To nonbank brokers and dealers in se cu ritie s.........
36
To others for purchasing and carrying securities2 ..
37 To finance agricultural production...............................
38
A ll o th e r ................................................................................
39 L ess; Unearned in c o m e ........................................................
40
Loan loss reserve........................................................
41 Other loans, n e t.......................................................................
42 Lease financing receivab les.................................................
43 All other a s s e t s .......................................................................
25,152
17,652
5,748
1,751
396,646
161,260
3,683
157,576
150,656
6,921
107,303
62,620
24,977
18,041
5,134
1,801
392,751
160,230
3,489
156,741
149,858
6,884
107,505
62,452
26,502
18,514
6,032
1,956
394,226
160,849
3,377
157,472
150,483
6,989
107,707
62,390
24,732
17,550
5,479
1,703
393,798
160,940
3,485
157,455
150,388
7,067
107,796
62,368
27,189
18,366
7,081
1,742
400,339
164,019
4,392
159,627
152,220
7,406
108,006
61,794
26,734
18,632
6,214
1,888
395,652
164,474
4,080
158,395
151,302
7,093
108,046
61,650
28,956
20,523
6,580
1,854
398,554
162,304
4,010
158,294
151,286
7,008
108,245
61,819
26,767
18,448
6,281
2,039
397,619
163,477
4,213
159,264
152,284
6,980
108,523
62,046
24,144
15,779
6,145
2,220
401,059
165,792
4,367
161,425
154,306
7,119
108,825
62,124
4,514
8,569
9,536
14,808
6,309
2,030
5,294
14,403
5,963
5,674
385,008
9,749
85,598
4,394
8,489
9,273
14,603
5,251
2,046
5,285
13,222
5,997
5,696
381,057
9,757
87,398
4,561
8,316
9,386
14,576
5,888
2,038
5,290
13,226
6,026
5,709
382,491
9,756
82,905
4,352
8,464
9,445
14,648
5,045
2,033
5,264
13,442
6,052
5,631
382,115
9,766
85,158
4,819
8,495
9,364
14,866
7,719
2,138
5,361
13,757
5,106
5,560
389,673
9,838
90,806
4,774
8,582
9,492
14,713
5,574
2,154
5,365
12,828
5,180
5,599
384,873
9,848
89,299
5,008
8,308
9,511
14,903
6,721
2,170
5,429
14,136
5,176
5,604
387,774
9,822
88,401
4,579
8,177
9,524
14,603
6,020
2,164
5,422
13,084
5,197
5,625
386,798
9,855
90,091
4,807
8,006
9,952
14,885
6,250
2,134
5,449
12,834
5,210
5,637
390,213
9,864
88,702
44 Total assets........................................................................
719,603
711,782
716,284
710,273
736,076
720,110
736,974
728,138
731,556
183,753
616
122,896
4,194
2,963
36,808
7,081
1,887
7,308
297,736
70,820
67,100
179,510
632
121,827
3,708
1,834
35,023
8,180
1,612
6,695
298,784
70,847
67,161
180,095
572
120,513
3,976
2,844
36,060
7,554
1,622
6,956
300,437
71,105
67,472
171,825
529
116,459
3,908
1,486
33,504
7,774
1,285
6,880
299,339
71,491
67,802
194,252
744
130,291
4,354
865
37,030
8,717
1,924
10,327
300,238
73,286
69,512
180,475
707
122,332
3,724
1,709
34,643
7,576
1,942
7,842
300,368
74,629
70,848
200,639
697
130,869
4,862
7,078
37,923
8,725
2,042
8,442
301,572
74,813
71,115
179,220
554
122,198
3,936
2,106
32,555
8,234
1,964
7,673
302,062
73,715
70,045
176,954
577
119,698
3,901
2,221
31,742
8,484
1,983
8,348
301,825
71,903
68,217
3,130
573
17
226,916
194,191
18,716
283
7,672
3,150
518
18
227,937
195,192
18,682
280
7,718
3,088
524
21
229,332
196,644
18,394
257
7,819
3,144
526
19
227,848
195,189
18,314
263
7,771
3,178
577
18
226,952
195,061
17,828
264
7,516
3,216
546
20
225,739
194,113
17,856
264
7,416
3,133
550
16
226,758
195,242
17,865
246
7,408
3,115
536
18
228,348
196,585
18,023
209
7,519
3,128
540
17
229,922
197,998
18,154
207
7,506
6,055
6,064
6,218
6,310
6,283
6,090
5,996
6,011
6,057
1,244
2,285
124,585
92
1,614
122,198
1,364
6,545
118,747
2,407
7,222
118,050
1,083
8,335
121,744
133
1,716
128,471
2,679
586
122,854
711
10,710
123,643
7,176
11,576
121,432
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
Deposits
Dem and d ep osits.....................................................................
Mutual savings b a n k s ........................................................
Individuals, partnerships, and corp oration s.............
States and political su b d ivisio n s....................................
U .S. governm ent................................................................
Commercial banks in the U nited S t a te s ....................
Banks in foreign countries...............................................
Foreign governments and official institutions...........
Certified and officers’ c h e c k s ........................................
Time and savings d e p o sits...................................................
Savings.....................................................................................
Individuals and nonprofit o rg a n iza tio n s................
Partnerships and corporations operated for
p r o f it ..........................................................................
D om estic governmental u n it s ....................................
A ll o t h e r ............................................................................
T im e.........................................................................................
Individuals, partnerships, and co rporations.........
States and political su b d iv isio n s...............................
U .S. governm ent............................................................
Commercial banks in the U nited S ta te s ................
Foreign governments, official institutions, and
banks ..........................................................................
Liabilities for borrowed money
Borrowings from Federal Reserve B a n k s..................
Treasury tax-and-loan n o t e s ..........................................
All other liabilities for borrowed m oney3 ..................
Other liabilities and subordinated notes and
debentures.....................................................................
62,129
61,783
61,374
63,692
62,315
60,784
60,682
63,937
64,876
70 Total liabilities..................................................................
671,732
663,980
668,562
662,534
687,966
671,947
689,013
680,284
683,839
71 Residual (total assets minus total liabilities)4 ................
47,871
47,802
47,721
47,740
48,109
48,163
47,961
47,853
47,717
1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes federal funds purchased and securities sold under agreement to re
purchase; for information on these liabilities at banks with assets of $1 billion or
more on D ec. 31, 1977, see table 1.13.
4. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
A20
1.28
Domestic Financial Statistics □ May 1981
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures
1981
Mar. 4
Mar. 11
Mar. 18
Mar. 25
Apr. 1 p
Apr. 8 p
Apr. 15 p
Apr. 2 2 p
Apr. 2 9 p
1 Cash items in process of collection....................................
2 Dem and deposits due from banks in the United
S ta te s..................................................................................
3 A ll other cash and due from depository institutions..
20,929
20,711
21,220
20,624
24,500
20,788
24,272
20,915
21,805
14,156
6,970
14,577
8,860
15,771
8,240
14,037
7,800
15,457
8,016
13,946
7,980
14,942
9,634
12,757
8,114
13,486
9,721
4 Total loans and securities1 ..............................................
123,903
121,570
124,784
124,270
127,325
123,605
127,576
126,513
126,707
Investment account, by m a tu rity .................................
One year or less..............................................................
Over one through five y e a r s ......................................
Over five years.................................................................
8,517
1,590
6,268
658
8,345
1,590
6,070
685
8,000
1,427
5,947
626
7,864
1,470
5,759
635
8,385
1,735
6,082
568
8,753
2,036
5,849
867
8,935
2,115
5,941
879
8,937
2,100
5,933
904
8,735
2,079
5,831
824
Investment accou n t............................................................
U.S. government a g en cies..........................................
States and political subdivision, by maturity . . . .
One year or less..........................................................
Over one y e a r ............................................................
Other bonds, corporate stocks and secu rities.. . .
13,629
2,353
10,671
1,400
9,271
606
13,589
2,345
10,646
1,409
9,237
598
13,564
2,329
10,617
1,400
9,217
617
13,510
2,320
10,552
1,347
9,205
638
13,851
2,635
10,596
1,362
9,234
621
13,916
2,634
10,645
1,412
9,232
638
14,001
2,637
10,722
1,437
9,285
642
14,028
2,648
10,736
1,460
9,276
643
14,031
2,637
10,756
1,484
9,272
638
6,672
3,030
3,065
577
98,124
49,550
932
48,617
46,105
2,512
15,254
9,440
6,228
3,217
2,393
618
96,494
49,419
989
48,430
45,961
2,469
15,274
9,453
9,332
5,312
3,428
591
97,002
49,674
862
48,812
46,339
2,472
15,345
9,481
9,410
6,048
2,843
519
96,549
49,666
1,018
48,648
46,178
2,470
15,368
9,518
7,793
3,569
3,678
545
100,319
51,025
1,494
49,532
46,942
2,590
15,432
9,550
6,547
2,829
3,079
640
97,462
50,323
1,240
49,083
46,562
2,521
15,448
9,548
8,638
4,636
3,276
726
99,083
50,124
1,068
49,055
46,623
2,432
15,469
9,566
8,764
4,707
3,270
787
97,880
50,642
1,156
49,485
47,058
2,427
15,502
9,699
8,034
3,751
3,323
960
99,025
51,431
1,248
50,183
47,661
2,522
15,571
9,700
1,451
4,008
4,142
4,452
4,126
487
437
4,776
1,147
1,892
95,084
2,252
38,782
1,386
4,314
4,050
4,298
3,099
498
440
4,263
1,182
1,903
93,408
2,259
40,299
1,484
4,203
4,066
4,278
3,646
500
443
3,881
1,197
1,917
93,888
2,261
35,792
1,345
4,370
4,050
4,391
3,003
492
427
3,921
1,213
1,850
93,486
2,261
35,423
1,205
4,251
3,954
4,399
5,370
497
458
4,178
1,171
1,852
97,296
2,251
41,025
1,274
4,409
4,081
4,221
3,359
483
442
3,874
1,217
1,856
94,389
2,253
39,285
1,459
4,077
4,079
4,231
4,512
489
448
4,628
1,210
1,871
96,001
2,252
35,721
1,355
4,073
3,894
4,167
3,743
482
434
3,889
1,222
1,873
94,784
2,254
37,588
1,373
3,804
4,174
4,203
3,780
468
434
4,088
1,238
1,880
95,908
2,255
36,528
206,991
208,277
208,068
204,415
218,575
207,858
214,397
208,141
210,502
67,443
297
32,383
461
799
23,017
5,376
1,617
3,494
55,976
9,243
8,833
67,983
323
33,387
363
496
22,426
6,471
1,348
3,169
56,230
9,227
8,832
67,646
288
32,786
390
872
23,061
5,874
1,106
3,268
56,970
9,239
8,851
64,180
272
31,255
425
435
21,619
6,055
993
3,125
57,081
9,270
8,887
74,168
398
36,998
470
155
22,134
6,945
1,633
5,434
56,985
9,560
9,171
65,830
391
32,272
379
373
21,264
5,959
1,546
3,646
57,220
9,811
9,414
75,578
376
34,904
908
2,539
24,035
6,962
1,736
4,118
58,003
9,908
9,511
64,805
277
31,816
362
744
19,791
6,381
1,629
3,805
57,831
9,760
9,374
64,988
295
31,422
368
605
19,540
6,748
1,626
4,383
57,480
9,427
9,044
285
122
3
46,732
39,785
1,770
36
2,386
285
107
3
47,003
40,015
1,721
48
2,440
274
108
5
47,731
40,727
1,689
44
2,434
275
105
3
47,811
40,650
1,684
44
2,520
279
108
2
47,424
40,423
1,606
37
2,481
278
114
4
47,409
40,438
1,598
37
2,498
278
116
2
48,096
41,061
1,636
33
2,538
277
106
3
48,070
40,975
1,685
33
2,540
272
107
2
48,053
40,791
1,797
38
2,568
2,755
2,779
2,837
2,912
2,876
2,838
2,827
2,837
2,859
550
43,512
1,103
2,032
40,088
780
2,201
38,766
473
44,674
1,860
149
38,925
315
2,983
39,540
3,162
3,019
39,973
Securities
6
7
8
9
10
11
V
13
14
15
16
17
18
Loans
19 Federal funds so ld 3 ......................................................................
20
To commercial b a n k s........................................................
21
To nonbank brokers and dealers in secu rities.........
22
To others................................................................................
23 Other loans, g r o ss...................................................................
24
Commercial and industrial...............................................
25
Bankers acceptances and commercial paper.........
26
All o th e r ............................................................................
27
U .S. ad d ressees..........................................................
28
N on-U .S. addressees.................................................
29
Real e s ta t e ............................................................................
30
To individuals for personal exp en d itu res..................
31 To financial institutions
Commercial banks in the U nited S t a te s ................
32
Banks in foreign countries..........................................
33
Sales finance, personal finance companies, e t c . . .
34
Other financial institutions..........................................
35
To nonbank brokers and dealers in se cu ritie s .........
36
To others for purchasing and carrying securities4 ..
37
To finance agricultural production...............................
All o th e r ................................................................................
38
39 L ess: Unearned in c o m e ........................................................
40
Loan loss reserve........................................................
41 Other loans, n e t.......................................................................
42 Lease financing receivab les.................................................
43 All other assets5.......................................................................
44 Total assets........................................................................
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
Deposits
Dem and d ep osits.....................................................................
Mutual savings b a n k s........................................................
Individuals, partnerships, and corp oration s.............
States and political subdivisions....................................
U .S. governm ent.................................................................
Commercial banks in the U nited S t a te s ....................
Banks in foreign countries...............................................
Foreign governments and official institutions...........
Certified and officers’ c h e c k s ........................................
Time and savings d e p o sits...................................................
Savings.....................................................................................
Individuals and nonprofit o r g a n iza tio n s................
Partnerships and corporations operated for
p r o f it ..................................................................................
Dom estic governmental u n i t s ....................................
A ll o th e r ............................................................................
T im e.........................................................................................
Individuals, partnerships, and co rp oration s.........
States and political su b d ivision s...............................
U .S . governm ent............................................................
Commercial banks in the United S t a te s ................
Foreign governments, official institutions, and
banks ..................................................................................
Liabilities for borrowed money
Borrowings from Federal Reserve B a n k s..................
Treasury tax-and-loan n o t e s ..........................................
A ll other liabilities for borrowed m oney6 ..................
Other liabilities and subordinated notes and
debentures..........................................................................
581
42,433
2,249
44,770
24,533
24,090
24,349
25,623
24,307
23,576
23,900
26,775
26,150
70 Total liabilities..................................................................
190,966
192,365
192,188
188,632
202,479
191,774
198,417
192,249
194,772
71 Residual (total assets minus total liabilities)4 ................
16,025
15,912
15,880
15,784
16,096
16,084
15,980
15,892
15,730
1.
2.
3.
4.
Excludes trading account securities.
Not available due to confidentiality.
Includes securities purchased under agreements to resell.
Other than financial institutions and brokers and dealers.
5. Includes trading account securities.
6. Includes federal funds purchased and securities sold under agreements to
repurchase
7. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
Weekly Reporting Banks
1.29
LARGE WEEKLY REPORTING COMMERCIAL BANKS
A21
Balance Sheet Memoranda
Millions of dollars, Wednesday figures
Mar. 4
Mar. 11
Mar. 18
Mar. 25
Apr. 1 p
Apr. 8 p
Apr. 15 p
Apr. 2 2 p
Apr. 29 p
B anks with A ssets o f $750 M illion or M ore
1 Total loans (gross} and securities adjusted1 ..................
2 Total loans (gross) adjusted1...............................................
3 Dem and deposits adjusted2 .................................................
546,093
425,420
96,695
540,495
421,047
99,168
542,053
423,402
95,836
539,337
422,399
94,447
550,422
430,275
106,362
544,348
424,865
100,880
546,427
427,989
103,692
545,754
427,481
99,034
547,877
430,643
97,593
4 Time deposits in accounts of $100,000 or m ore...........
5
Negotiable C D s ...................................................................
6
Other time deposits............................................................
157,040
111,804
45,235
157,408
112,208
45,200
158,716
113,452
45,265
157,529
112,612
44,918
156,180
111,542
44,638
155,340
110,971
44,370
155,604
111,658
43,945
157,290
113,056
44,234
158,944
114,178
44,766
7 Loans sold outright to affiliates3........................................
8
Commercial and industrial...............................................
9
O th er.......................................................................................
2,740
1,835
905
2,783
1,864
919
2,788
1,888
900
2,746
1,855
891
2,730
1,842
889
2,710
1,849
861
2,716
1,846
870
2,691
1,854
838
2,748
1,880
868
10 Total loans (gross} and securities adjusted1 ..................
11 Total loans (gross) adjusted1...............................................
12 Dem and deposits adjusted2 .................................................
510,846
399,631
89,692
505,260
395,292
91,957
506,769
397,653
88,456
503,924
396,628
87,476
514,775
404,343
98,764
508,720
398,981
93,498
510,754
401,980
96,337
509,917
401,360
91,989
512,132
404,617
90,660
13 Time deposits in accounts of $100,000 or m ore...........
14
Negotiable C D s ...................................................................
15
Other time deposits............................................................
147,930
105,435
42,495
148,356
105,900
42,457
149,598
107,116
42,482
148,536
106,362
42,174
147,506
105,534
41,973
146,789
105,054
41,735
147,370
106,026
41,344
149,037
107,379
41,658
150,616
108,474
42,142
16 Loans sold outright to affiliates3........................................
17
Commercial and industrial...............................................
18
O th er.......................................................................................
2,705
1,807
897
2,746
1,834
912
2,750
1,857
893
2,710
1,827
883
2,692
1,813
880
2,675
1,822
852
2,680
1,819
862
2,647
1,823
824
2,692
1,842
850
19 Total loans (gross} and securities adjusted1-4 ................
20 Total loans (gross) adjusted1...............................................
21 Dem and deposits adjusted2 .................................................
122,461
100,315
22,699
120,053
98,119
24,350
121,101
99,537
22,493
119,939
98,566
21,502
125,575
103,338
27,379
122,576
99,907
23,406
124,562
101,626
24,733
123,547
100,582
23,355
124,700
101,935
23,038
22 Time deposits in accounts o f $100,000 or m ore...........
23
Negotiable C D s ...................................................................
24
Other time deposits............................................................
36,296
26,714
9,582
36,466
26,952
9,514
37,119
27,581
9,538
37,301
27,888
9,413
36,907
27,358
9,548
36,950
27,416
9,533
37,688
28,194
9,494
37,763
28,301
9,463
37,775
28,308
9,467
B a n k s w it h A s s e t s o f $1 B i l l i o n o r M o r e
B anks
in
N ew Y o r k C ity
1. Exclusive of loans and federal funds transactions with domestic commercial
banks.
2. All demand deposits except U .S . government and domestic banks less cash
items in process of collection.
3. Loans sold are those sold outright to a bank’s own foreign branches, non
consolidated nonbank affiliates of the bank, the bank’s holding company (if not a
bank), and nonconsolidated nonbank subsidiaries of the holding company.
4. Excludes trading account securities.
A22
1.30
Domestic Financial Statistics □ May 1981
LARGE WEEKLY REPORTING COMMERCIAL BANKS
Millions of dollars
Domestic Classified Commercial and Industrial Loans
Outstanding
Industry classification
1980
Net change during
1981
1981
1981
Ql
Mar.
A djust
ment
bank1
D ec. 31
Jan. 28
Feb. 25
Mar. 25 p
1 Durable goods manufacturing................
24,676
24,383
24,472
24,640
24,588
1,165
-3 9
168
-5 2
2 Nondurable goods m anufacturing----3
Food, liquor, and tobacco ..................
4
Textiles, apparel, and leather...........
5
Petroleum re fin in g ...............................
6
Chemicals and r u b b e r .........................
7
Other nondurable g o o d s ....................
20,506
5,391
4,150
3,635
3,917
3,412
19,359
4,915
4,096
3,185
3,782
3,381
18,937
4,529
4,364
2,929
3,673
3,442
19,401
4,580
4,351
2,982
3,838
3,650
19,882
4,414
4,482
3,300
4,039
3,646
972
1,040
-1 ,0 5 4
949
184
-1 4 7
-1,103
-8 0 7
200
-6 5 4
-8 0
237
-4 2 2
-3 8 6
268
-2 5 6
-1 0 9
61
464
52
-1 3
53
165
208
480
-1 6 6
131
319
201
-4
Apr. 29 p
Q4
Apr.P
8 Mining (including crude petroleum
and natural gas).................................
16,427
16,251
15,935
15,750
16,747
2,470
-6 7 8
-3 1 6
-1 8 5
998
9 Trade..............................................................
10
Commodity dealers...............................
11
Other w h o le s a le ....................................
12
R etail..........................................................
26,239
2,563
12,293
11,384
25,550'
2,116
12,055'
11,378
25,242
1,874
11,704'
11,663
25,617
1,950
11,875'
11,792
26,777
2,337
12,242
12,197
1,290
444
707
138
-6 2 2 '
-6 1 3
-4 1 7
409
-3 0 7
-2 4 2
-3 5 0
285
375
76
170
129
1,160
387
367
406
13 Transportation, communication,
and other public u tilitie s ................
14
Transportation........................................
15
Com m unication......................................
16
Other public utilities.............................
21,304
8,374
3,319
9,611
20,741
8,254
3,184
9,303
20,270
8,139
3,097
9,033
19,971
8,106
3,160
8,705
20,354
8,163
3,276
8,914
2,081
639
326
1,116
- 1 ,3 3 2
-2 6 6
-1 6 0
-9 0 6
-4 7 2
-1 1 4
-8 7
-2 7 0
-2 9 9
-3 4
62
-3 2 8
383
57
116
209
17 Construction.................................................
18 Services..........................................................
19 All other2 .....................................................
5,994
22,857
16,554
5,950
23,242
15,775
6,109
23,528
15,817
6,225
23,603
15,181
6,469
24,069
15,421
-3 6
1,546
1,152
233
746
- 1 ,7 1 4
159
286
42
116
75
-6 3 6
244
465
240
341
20 Total domestic lo a n s.................................
154,557
151,252'
150,310'
150,388'
154,306
10,640
-4 ,5 0 8 '
78
3,918
339
21 Memo: Term loans (original maturity
more than 1 year) included in do
mestic loans ........................................
81,768
81,794
79,298
80,403
5,232
-8 4 9
1,105
1,147
1. Adjustment bank amounts represent accumulated adjustments originally made
to offset the cumulative effects o f mergers. These adjustment amounts should be
added to outstanding data for any date in the year to establish comparability with
any date in the subsequent year. Changes shown have been adjusted for these
amounts.
2. Includes commercial and industrial loans at a few banks with assets of $1
billion or more that do not classify their loans.
- 2 ,4 6 7
- 1 ,6 4 7
-2
-2
-2
N o t e . New series. The 134 large weekly reporting commercial banks with do
mestic assets of $1 billion or more as of Decem ber 31, 1977, are included in this
series. The revised series is on a last-Wednesday-of-the-month basis. Partly esti
mated historical data are available from the Banking Section, Division o f Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D .C ., 20551.
Deposits and Commercial Paper
1.31
A23
GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations1
Billions of dollars, estimated daily-average balances
Commercial banks
Type of holder
19792
1975
Dec.
1976
D ec.
1977
Dec.
1980
1978
D ec.
Sept.
D ec.
Mar.
June
Sept.
D ec.
1 All holders—Individuals, partnerships, and
corporations............................................................
236.9
250.1
274.4
294.6
292.4
302.2
288.4
288.6
302.0
316.8
2 Financial b u sin ess.................................................................
3 Nonfinancial business..........................................................
4 C onsum er................................................................................
5 F o reig n .....................................................................................
6 O ther.........................................................................................
20.1
125.1
78.0
2.4
11.3
22.3
130.2
82.6
2.7
12.4
25.0
142.9
91.0
2.5
12.9
27.8
152.7
97.4
2.7
14.1
26.7
148.8
99.2
2.8
14.9
27.1
157.7
99.2
3.1
15.1
28.4
144.9
97.6
3.1
14.4
27.7
145.3
97.9
3.3
14.4
29.6
151.9
101.8
3.2
15.5
29.8
162.3
104.0
3.3
17.4
W eekly reporting banks
1980
19793
1975
D ec.
1976
D ec.
1977
D ec.
1978
D ec.
Sept.
D ec.
Mar.
June
Sept.
D ec.
7 All holders—Individuals, partnerships, and
8
9
10
11
12
corporations............................................................
124.4
128.5
139.1
147.0
132.7
139.3
133.6
133.9
140.6
147.4
Financial b usiness................................................................
Nonfinancial business..........................................................
C onsum er................................................................................
F oreign ....................................................................................
O ther.........................................................................................
15.6
69.9
29.9
2.3
6.6
17.5
69.7
31.7
2.6
7.1
18.5
76.3
34.6
2.4
7.4
19.8
79.0
38.2
2.5
7.5
19.7
69.1
33.7
2.8
7.4
20.1
74.1
34.3
3.0
7.8
20.1
69.1
34.2
3.0
7.2
20.2
69.2
33.9
3.1
7.5
21.2
72.4
36.0
3.1
7.9
21.6
77.7
36.3
3.1
8.7
1. Figures include cash items in process of collection. Estimates of gross deposits
are based on reports supplied by a sample of commercial banks. Types of depositors
in each category are described in the June 1971 B u l l e t i n , p. 466.
2. Beginning with the March 1979 survey, the demand deposit ownership survey
sample was reduced to 232 banks from 349 banks, and the estimation procedure
was modified slightly. To aid in comparing estimates based on the old and new
reporting sample, the following estimates in billions of dollars for Decem ber 1978
have been constructed using the new smaller sample; financial business, 27.0;
nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and other, 15.1.
1.32
3.
After the end of 1978 the large weekly reporting bank panel was changed to
170 large commercial banks, each of which had total assets in domestic offices
exceeding $750 million as of Dec. 31, 1977. See “Announcem ents,” p. 408 in the
May 1978 B u l l e t i n . Beginning in March 1979, demand deposit ownership esti
mates for these large banks are constructed quarterly on the basis of 97 sample
banks and are not comparable with earlier data. The following estimates in billions
of dollars for December 1978 have been constructed for the new large-bank panel;
financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8; foreign, 2.5;
other, 6.8.
COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1980
Instrument
1977
1978
19791
1980
Dec.
Dec.
Dec.
Dec.
Sept.
Oct.
1981
Nov.
Dec.
Jan.
Feb.
Mar.
Commercial paper (seasonally adjusted)
1 All issuers..........................................................
2
3
4
5
6
Financial companies2
Dealer-placed paper3
T o ta l..............................................................
B an k -related ...............................................
Directly placed paper4
T o ta l..............................................................
B an k -related ..........................................
Nonfinancial companies5 ..........................
65,051
83,438
112,809
125,148
123,706
123,009
124,606
125,148
128,656r
130,306 r
132,702
8,796
2,132
12,181
3,521
17,377
2,874
19,631
3,561
19,477
3,370
19,062
3,442
19,591
3,436
19,631
3,561
19,886
3,670
20,859
3,742'
22,643
4,163
40,574
7,102
15,681
51,647
12,314
19,610
64,748
17,598
30,684
67,888
22,382
37,629
65,618
19,692
38,611
66,612
21,146
37,335
67,340
21,939
37,675
67,888
22,382
37,629
68,956'
22,570
39,814
68,936'
22,331
40,511
69,461
21,604
40,598
Bankers dollar acceptances (not seasonally adjusted)
7 T o ta l...................................................................
8
9
10
11
12
13
H older
Accepting b a n k s.............................................
Own b i l l s .....................................................
Bills b o u g h t.................................................
Federal Reserve Banks
Own a cco u n t...............................................
Foreign correspondents ........................
O thers ..........................................................
25,450
33,700
45,321
54,744
55,774
56,610
55,226
54,744
54,465
58,084
60,089
10,434
8,915
1,519
8,579
7,653
927
9,865
8,327
1,538
10,564
8,963
1,601
10,275
9,004
1,270
11,317
9,808
1,509
10,236
8,837
1,399
10,564
8,963
1,601
9,371
7,951
1,420
9,911
8,770
1,141
10,117
8,735
1,382
954
362
13,700
1
664
24,456
704
1,382
33,370
776
1,791
41,614
499
1,820
43,179
566
1,915
42,813
523
1,852
42,616
776
1,791
41,614
0
1,771
43,323
0
1,399
46,779
298
1,372
48,303
6,378
5,863
13,209
8,574
7,586
17,540
10,270
9,640
25,411
11,776
12,712
30,257
11,731
12,991
31,052
12,254
13,445
30,911
11,774
13,670
29,782
11,776
12,712
30,257
11,903
12,816
29,746
12,976
12,979
32,129
13,292
13,451
33,347
Basis
14 Imports into United S ta te s .........................
15 Exports from United S t a t e s ......................
16 All oth er ......................................................
1. A change in reporting instructions results in offsetting shifts in the dealerplaced and directly placed financial company paper in O ctober 1979.
2. Institutions engaged primarily in activities such as, but not limited to, com
mercial, savings, and mortgage banking; sales, personal, and mortgage financing;
factoring, finance leasing, and other business lending; insurance underwriting; and
other investment activities.
3. Includes all financial company paper sold by dealers in the open market.
4. A s reported by financial companies that place their paper directly with inves
tors.
5. Includes public utilities and firms engaged primarily in such activities as com
munications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
A24
1.33
Domestic Financial Statistics □ May 1981
PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum
Effective Date
Rate
Effective date
1980— Nov.
6 ....................
1 7 ....................
2 1 ....................
26 .
...
D ec. 2 ....................
5 ....................
1 0 ....................
1 6 ....................
1 9 ....................
15.50
16.25
17.00
17.75
18.50
19.00
20.00
21.00
21.50
1981— Jan.
2 ......................
9 ......................
3 ......................
2 3 ......................
Mar. 1 0......................
17......................
Apr. 2 ....................
2 4 ....................
3 0 ....................
Feb.
Rate
Month
Average
rate
Month
Average
rate
20.50
20.00
19.50
19.00
18.00
17.50
17.00
17.50
18.00
1980— Jan................................
F eb...............................
Mar..............................
Apr..............................
M ay.............................
June ...........................
J u ly .............................
A ug..............................
15.25
15.63
18.31
19.77
16.57
12.63
11.48
11.12
12.23
1980— O ct...............................
N ov..............................
D e c ...............................
13.79
16.06
20.35
1981— Jan................................
Feb...............................
20.16
19.43
18.05
17.15
A pr..............................
1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 2-7, 1981
Size of loan (in thousands of dollars)
Item
All
sizes
1-24
25-49
50-99
100-499
500-999
1,000
and over
S hort -T erm C ommercial and
Industrial L oans
Am ount of loans (thousands o f dollars)...........................
Number o f loan s........................................................................
Weighted-average maturity (m o n th s)...............................
Weighted-average interest rate (percent per annum) .
Interquartile range1 .............................................................
16,985,777
158,959
1.9
19.91
19.12-21.25
817.631
111.775
3.3
19.59
17.23-21.94
521,319
15,982
3.7
19.53
18.00-21.84
918,372
14,711
4.2
19.77
18.77-22.13
2,501,018
13,165
3.6
20.18
19.28-22.51
751,196
1,192
3.8
20.87
20.00-21.94
11,476,241
2,135
1.1
19.83
19.18-20.32
Percentage o f amount o f loans
6 With floating r a te .....................................................................
7 Made under com m itm ent......................................................
8 With no stated m atu rity ........................................................
38.7
43.0
18.1
31.0
23.9
10.2
29.4
22.1
11.7
42.9
37.6
24.6
55.6
39.7
18.0
77.6
65.8
36.9
33.1
44.9
17.2
1
2
3
4
5
L ong -T erm C ommercial and
Industrial L oans
Amount of loans (thousands of dollars)...........................
Number of loan s........................................................................
Weighted-average maturity (m o n th s)...............................
Weighted-average interest rate (percent per annum) .
Interquartile range1 .............................................................
2,106,841
19,309
47.8
19.26
17.92-21.00
238,914
17,320
33.4
19.06
17.00-21.00
297.407
1,355
61.8
19.31
16.25-21.00
161,491
245
40.1
20.48
20.00-21.86
1,409,030
389
48.2
19.14
18.28-20.75
Percentage o f amount o f loans
14 With floating r a te ......................................................................
15 Made under com m itm en t......................................................
73.8
76.9
39.4
33.5
88.1
49.7
85.0
77.7
75.4
89.9
9
10
11
12
13
Construction and
L and D evelopment L oans
16
17
18
19
20
Am ount of loans (thousands o f dollars)...........................
Number of loan s........................................................................
Weighted-average maturity (m o n th s)...............................
Weighted-average interest rate (percent per annum) .
Interquartile range1 .............................................................
584,021
12,681
10.4
19.40
16.00-22.19
55.418
7.442
6.3
18.76
16.64-21.50
124,270
3,324
9.9
17.40
13.65-22.04
68,475
1,107
6.7
17.92
13.28-21.94
133,859
648
11.4
20.20
20.00-22.50
201,999
160
12.4
20.77
20.50-22.19
21
22
23
24
Percentage o f amount o f loans
With floating r a te .....................................................................
Secured by real e s ta te .............................................................
Made under com m itm en t......................................................
With no stated m atu rity ........................................................
63.9
89.1
74.5
10.7
36.0
91.9
57.7
28.6
31.2
87.9
84.4
3.8
42.1
94.3
77.0
6.2
70.5
79.7
73.8
14.0
94.8
93.6
72.7
9.5
Type o f construction
25 1- to 4-fam ily..............................................................................
26 M u ltifam ily.................................................................................
27 Nonresidential............................................................................
40.3
15.1
44.7
77.4
4.7
18.0
54.2
2.1
43.7
63.7
9.3
27.0
25.4
15.0
59.6
23.4
27 9
48,7
All
sizes
1-9
10-24
25-49
50-99
100-249
250
and over
L oans to F armers
28
29
30
31
32
Amount of loans (thousands of dollars)...........................
Number o f loan s........................................................................
Weighted-average maturity (m o n th s)................................
Weighted-average interest rate (percent per annum) .
Interquartile range1 .............................................................
1,083,356
60,769
6.2
17.92
16.21-19.25
147.558
39.249
6.4
17.36
16.10-18.27
166,464
11,339
6.2
17.71
16.21-18.81
200,977
5,871
5.9
17.52
16.10-18.50
153,148
2,456
6.8
17.85
16.46-19.25
204,451
1,457
4.8
17.92
16.61-18.81
210,756
398
7.5
18.94
15.69-20.84
33
34
35
36
37
By purpose o f loan
Feeder liv e sto c k ........................................................................
Other liv e sto c k ..........................................................................
Other current operating e x p e n se s......................................
Farm machinery and e q u ip m en t.........................................
O th e r ............................................................................................
17.79
17.45
17.91
17.37
18.31
17.54
16.34
17.42
17.52
17.63
17.87
18.06
17.72
17.16
17.85
18.14
17.20
17.36
17.58
17.22
17.37
17.85
17.53
17.66
18.84
16.81
(2)
18.01
(2)
18.06
18.55
(2)
18.95
(2)
20.52
1. Interest rate range that covers the middle 50 percent of the total dollar amount
of loans made.
2. Fewer than 10 sample loans.
N ote . For more detail, see the Board’s E .2(111) statistical release,
Securities Markets
1.35
A25
INTEREST RATES Money and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1981, week ending
1981
Instrument
1978
1979
1980
Jan.
Feb.
Mar.
Apr.
Apr. 3
Apr. 10
Apr. 17
Apr. 24
May 1
M oney M arket R ates
1 Federal funds1-2 .................................................
Commercial paper3,4
2
1-m onth............................................................
3
3-m onth............................................................
4
6-m onth............................................................
Finance paper, directly placed3-4
5
1-m onth............................................................
6
3-m onth............................................................
7
6-m onth............................................................
Bankers acceptances4-5
8
3-m onth............................................................
9
6-m onth............................................................
Certificates of deposit, secondary market6
10
1-m onth............................................................
11
3-m onth............................................................
12
6-m onth............................................................
13 Eurodollar deposits, 3-month2 ....................
U .S . Treasury bills4
Secondary market7
14
3-m onth........................................................
15
6-m onth........................................................
16
1-year............................................................
Auction average8
17
3-m onth........................................................
18
6-m onth........................................................
19
1-year............................................................
7.93
11.19
13.36
19.08
15.93
14.70
15.72
14.93
15.43
15.33
15.55
16.28
7.76
7.94
7.99
10.86
10.97
10.91
12.76
12.66
12.29
17.73
16.58
15.10
15.81
15.49
14.87
14.15
13.94
13.59
14.79
14.56
14.17
13.82
13.32
12.93
14.68
14.39
13.95
14.92
14.81
14.44
14.97
14.85
14.50
15.70
15.39
14.94
7.73
7.80
7.78
10.78
10.47
10.25
12.44
11.49
11.28
16.97
14.49
14.09
15.52
14.45
14.05
13.78
13.08
12.89
14.24
13.28
12.94
13.39
12.50
12.25
14.01
12.83
12.56
14.44
13.45
13.05
14.53
13.63
13.13
15.06
13.89
13.63
8.11
n.a.
11.04
n.a.
12.78
n.a.
16.62
14.88
15.54
14.89
13.88
13.49
14.65
14.19
13.26
12.84
14.52
13.99
14.83
14.35
14.84
14.48
15.49
14.93
7.88
8.22
8.61
8.78
11.03
11.22
11.44
11.96
12.91
13.07
12.99
14.00
17.99
17.19
15.92
18.07
16.11
16.14
16.00
17.18
14.33
14.43
14.48
15.36
14.92
15.08
15.12
15.95
13.74
13.65
13.61
14.78
14.80
14.89
14.86
14.96
15.15
15.38
15.39
16.16
15.19
15.37
15.50
16.44
15.73
15.95
16.03
16.38
7.19
7.58
7.74
10.07
10.06
9.75
11.43
11.37
10.89
15.02
14.08
12.62
14.79
14.05
12.99
13.36
12.81
12.28
13.69
13.45
12.79
12.60
12.18
11.86
13.67
13.36
12.53
13.66
13.50
12.80
13.74
13.72
13.05
14.52
14.09
13.41
7.221
7.572
7.678
10.041
10.017
9.817
11.506
11.374
10.748
14.724
13.883
12.554
14.905
14.134
12.801
13.478
12.983
11.481
13.635
13.434
12.991
12.501
12.078
14.147
13.783
13.783
13.646
13.553
13.621
12.991
14.190
14.042
13.98
13.90
14.27
14.10
15.11
14.72
13.89
13.84
13.73
13.56
13.38
13.12
14.07
14.01
13.89
13.70
13.52
13.24
14.70
14.45
14.45
14.33
14.14
13.96
13.78
13.51
13.25
C apital M arket R ates
20
21
22
23
24
25
26
27
28
U .S . Treasury notes and bonds9
Constant maturities10
1-year............................................................
2-year............................................................
2-V2-year11...................................................
3-year............................................................
5-year............................................................
7-year............................................................
10-year..........................................................
20-year..........................................................
30-year..........................................................
8.34
8.34
10.67
10.12
12.05
11.77
14.08
13.26
14.57
13.92
13.71
13.57
8.29
8.32
8.36
8.41
8.48
8.49
9.71
9.52
9.48
9.44
9.33
9.29
11.55
11.48
11.43
11.46
11.39
11.30
13.01
12.77
12.66
12.57
12.29
12.14
13.65
13.41
13.28
13.19
12.98
12.80
13.51
13.41
13.24
13.12
12.94
12.69
14.32
13.20
14.15
13.33
13.90
14.09
13.40
13.99
13.46
13.85
13.36
13.68
13.23
13.46
13.05
13.20
12.77
29
C om posite12
Over 10 years (lon g-term )....................
7.89
8.74
10.81
11.65
12.23
12.15
12.62
12.25
12.56
12.66
12.65
12.89
State and local notes and bonds
M oody’s series13
30
A aa.................................................................
31
B a a .................................................................
32
Bond Buyer series1 4 ....................................
5.52
6.27
6.03
5.92
6.73
6.52
7.85
9.01
8.59
8.98
9.90
9.66
9.46
10.15
10.10
9.50
10.40
10.16
9.78
10.85
10.62
9.50
10.60
10.21
9.80
10.80
10.45
9.80
10.80
10.70
10.00
11.20
10.80
10.00
11.40
10.94
9.07
8.73
8.92
9.12
9.45
10.12
9.63
9.94
10.20
10.69
12.75
11.94
12.50
12.89
13.67
13.80
12.81
13.52
13.83
15.03
14.22
13.35
13.89
14.27
15.37
14.26
13.33
13.90
14.47
15.34
14.66
13.88
14.39
14.82
15.56
14.29
13.41
13.90
14.58
15.25
14.50
13.72
14.22
14.65
15.42
14.67
13.89
14.38
14.82
15.61
14.81
14.02
14.59
14.94
15.71
14.99
14.26
14.79
15.08
15.80
8.96
8.97
10.03
10.02
12.74
12.70
14.12
14.17
14.90
14.58
14.71
14.41
15.68
15.48
14.87
14.89
15.19
15.36
15.85
15.78
16.12
16.26
8.25
5.28
9.07
5.46
10.57
5.25
11.64
4.76
11.83
5.00
11.81
4.88
11.80
4.84
11.78
4.77
11.90
4.86
11.69
4.86
11.82
4.87
11.88
4.92
Corporate bonds
Seasoned issues15
A ll in d u stries.............................................
A aa.................................................................
A a ...................................................................
A .....................................................................
B a a .................................................................
Aaa utility bonds16
38
New i s s u e ...................................................
39
Recently offered issu es...........................
33
34
35
36
37
40
41
M emo : Dividend/price ratio17
Preferred sto ck s.............................................
Common sto c k s.............................................
1. W eekly 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. W eekly figures are statement week averages— that is, averages for the week
ending Wednesday.
3. Unweighted average of offering rates quoted by at least five dealers (in the
case o f 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.
4. Yields are quoted on a bank-discount basis, rather than an investment yield
basis (which would give a higher figure).
5. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
6. Unweighted average of offered rates quoted by at least five dealers early in
the day.
7. Unweighted average of closing bid rates quoted by at least five dealers.
8. Rates are recorded in the week in which bills are issued.
9. Yields (not compounded) are based on closing bid prices quoted by at least
five dealers.
10. Yields adjusted to constant maturities by the U .S . Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.
14.57
14.36
14.17
14.01
13.75
13.50
11. Each weekly figure is calculated on a biweekly basis and is the average of
five business days ending on the M onday following the calendar week. The biweekly
rate is used to determine the maximum interest rate payable in the following twoweek period on small saver certificates. (See table 1.16.)
12. Unweighted averages for all outstanding notes and bonds neither due nor
callable in less than 10 years, including several very low yielding “flower” bonds.
13. General obligations only, based on figures for Thursday, from M oody’s
Investors Service.
14. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
15. Daily figures from M oody’s Investors Service. Based on yields to maturity
on selected long-term bonds.
16. Compilation of the Federal Reserve. Issues included are long-term (20 years
or more). New-issue yields are based on quotations on date of offering; those on
recently offered issues (included only for first 4 weeks after termination of under
writer price restrictions), on Friday close-of-business quotations.
17. Standard and Poor’s corporate series. Preferred stock ratio based on a sample
of ten issues: four public utilities, four industrials, one financial, and one trans
portation. Common stock ratios on the 500 stocks in the price index.
A26
1.36
Domestic Financial Statistics □ May 1981
STOCK MARKET
Selected Statistics
1980
Indicator
1981
1980
1978
Oct.
Nov.
Apr.
Prices and trading (averages o f daily figures)
Common stock prices
1 New York Stock Exchange (D ec. 31, 1965 = 50) ..
2
In d u strial...........................................................................
3
Transportation...................................................................
4
U tility ..................................................................................
5
Finance ................................................................................
6 Standard & Poor’s Corporation (1941-43 = 10)1. ..
7 American Stock Exchange (A ug. 31, 1973 = 100) .
53.76
58.30
43.25
39.23
56.74
96.11
144.56
55.67
61.82
45.20
36.46
58.65
107.94
186.56
68.06
78.64
60.52
37.35
64.28
118.71
300.94
75.17
88.00
70.76
38.44
68.29
130.22
350.08
78.15
92.32
77.22
38.35
67.21
135.65
349.97
76.69
90.37
75.74
37.84
67.46
133.48
347.56
76.24
89.23
74.43
38.53
70.04
132.97
344.21
73.52
85.74
72.76
37.59
68.48
128.40
338.28
76.46
89.39
77.09
37.78
72.82
133.19
347.07
77.60
90.57
80.63
38.34
74.59
134.43
363.09
Volume o f trading (thousands o f shares)
8 New York Stock E xchan ge...............................................
9 American Stock E x c h a n g e ...............................................
28,591
3,622
32,233
4,182
44.867
6.377
44,860
7,087
54,895
7,852
46,620
6,410
45,500
6,024
42,963
4,816
53,387
5,682
54,124
6,339
Customer financing (end-of-period balances. in millions o f dollars)
10 Regulated margin credit at brokers/dealers2..............
11,035
11,619
14,721
13,293
14,363
14,721
14,242
14,171
14,243
11 Margin stock3.........................................................................
12 Convertible bonds................................................................
13 Subscription iss u e s ..............................................................
10,830
205
1
11,450
167
2
14.500
219
2
13,080
211
2
14,140
220
3
14,500
219
2
14,020
221
1
13,950
220
1
14,020
222
1
1
n.a.
Free credit balances at brokers4
14 M argin-account.....................................................................
15 C ash-account.........................................................................
835
2,510
1,105
4,060
2.105
6.070
1,950
5,500
2,120
5,590
2,105
6,070
2,065
5,655
2,225
5,700
2,340
6,530
1
t
Margin-account debt at brokers (percentage distribution, end of period)
16 T otal......................................
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
By equity class (in percent)5
Under 40...................................
4 0 -4 9 ..........................................
5 0 -5 9 ..........................................
6 0 -6 9 ..........................................
7 0 -7 9 ..........................................
80 or m o r e ...............................
33.0
28.0
18.0
10.0
6.0
5.0
16.0
29.0
27.0
14.0
8.0
7.0
14.0
30.0
25.0
14.0
9.0
8.0
13.0
29.0
25.0
15.0
10.0
8.0
13.0
18.0
31.0
18.0
11.0
9.0
14.0
30.0
25.0
14.0
9.0
8.0
20.0
30.0
22.0
13.0
8.0
7.0
20.0
31.0
21.0
13.0
8.0
7.0
16.0
28.0
26.0
14.0
9.0
8.0
17
18
19
20
21
22
Special miscellaneous-account balances at brokers (end of period)
23 Total balances (millions of dollars)6 ............................
13,092
Distribution by equity status (percent)
24 Net credit sta tu s ..................................................................
Debt status, equity of
25
60 percent or m o re..........................................................
26
Less than 60 percent.......................................................
16,150
21,690
41.3
44.2
47.8
45.1
13.6
47.0
8.8
44.4
7.7
19,929
21,600
21,690
46.8
46.5
46.2
7.0
46.8
6.7
21,686
21,861
22,548
47.8
47.0
48.6
50.9
44.4
7.7
43.9
9.1
43.1
8.3
41.5
7.6
t
1
n.a.
1
Margin requirements (percent of market value and effective date)7
27 Margin stocks.........
28 Convertible bonds.
29 Short s a le s .............
Mar. 11, 1968
June 8, 1968
May 6, 1970
D ec. 6, 1971
Nov. 24, 1972
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Margin credit includes all credit extended to purchase or carry stocks or related
equity instruments and secured at least in part by stock. Credit extended is endoi-month data for member firms of the N ew York Stock Exchange.
In addition to assigning a current loan value to margin stock generally. Regu
lations T and U permit special loan values for convertible bonds and stock acquired
through exercise of subscription rights.
3. A distribution of this total by equity class is shown on lines 17-22.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
Jan. 3, 1974
50
50
50
5. Each customer’s equity in his collateral (market value o f collateral less net
debit balance) is expressed as a percentage of current collateral values.
6. Balances that may be used by customers as the margin deposit required for
additional purchases. Balances may arise as transfers based on loan values o f other
collateral in the customer's margin account or deposits o f cash (usually sales pro
ceeds) occur.
7. Regulations G, T, and U o f the Federal Reserve Board of G overnors, pre
scribed in accordance with the Securities Exchange Act o f 1934, limit the amount
of credit to purchase and carry margin stocks that may be extended on securities
as collateral by prescribing a maximum loan value, which is a specified percentage
of the market value o f the collateral at the time the credit is extended. Margin
requirements are the difference between the market value (100 percent) and the
maximum loan value. The term “margin stocks” is defined in the corresponding
regulation.
Thrift Institutions
1.37
SAVINGS INSTITUTIONS
A ll
Selected Assets and Liabilities
Millions of dollars, end of period
1980
Account
1978
1981
1979
June
July
Sept.
Aug.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar . p
Savings and loan associations
1 A ssets..............................................................
523,542
578,962
594,397
596,620
603,295
609,320
617,773
623,939
629,829
631,228
634,405
636,636
2 M o rtgages............................................................
3 Cash and investment securities1 ..................
4 O th e r .....................................................................
432,808
44,884
45,850
475,688
46,341
56,933
481,042
52,408
60,947
482,839
52,165
61,616
487,036
53,336
62,923
491,895
53,435
63,990
496,495
56,146
65,132
499,973
57,302
66,664
502,812
57,572
69,445
504,068
57,460
69,700
505,309
58,401
70,695
507,030
58,410
71,196
5 Liabilities and net worth..............................
523,542
578,962
594,397
596,620
603,295
609,320
617,773
623,939
629,829
631,228
634,405
636,636
Savings capital......................................................
Borrowed m o n e y ...............................................
F H L B B ............................................................
O th e r .................................................................
Loans in p rocess.................................................
Other .....................................................................
430,953
42,907
31,990
10,917
10,721
9,904
470,004
55,232
40,441
14,791
9,582
11,506
486,680
54,796
40,613
14,183
7,031
12,966
488,896
41,239
39,882
13,579
7,112
14,364
497,403
55,396
41,005
14,391
7,540
16,190
496,991
58,418
42,547
15,871
8,243
12,776
500,861
60,727
44,325
16,402
8,654
14,502
503,365
62,067
45,505
16,562
8,853
16,433
510,959
64,491
47,045
17,446
8,783
12,227
512,946
62,938
46,629
16,309
8,120
14,104
515,250
62,270
46,360
15,910
7,833
16,071
518,873
64,088
47,292
16,796
7,711
13,334
12 Net worth2 ............................................................
29,057
32,638
32,924
32,787
32,766
32,892
33,029
33,221
33,319
33,120
32,981
32,630
13 Memo: Mortgage loan com
mitments outstanding3 .............................
18,911
16,007
15,368
18,020
20,278
20,311
19,077
17,979
16,102
15,972
16,279
17,288
6
7
8
9
10
11
Mutual savings banks4
158,174
163,405
166,982
167,959
168,752
169,409
170,432
171,126
171,495'
171,891'
172,349
95,157
7,195
98,908
9,253
99,176
11,148
99,301
11,390
99,289
11,122
99,306
11,415
99,523
11,382
99,677
11,477
99,813'
11,730'
99,816'
12,199'
99,739
12,598
4,959
3,333
39,732
3,665
4,131
7,658
2,930
37,086
3,156
4,412
7,483
2,706
38,276
3,561
4,631
7,796
2,702
38,863
3,260
4,648
8,079
2,709
39,327
3,456
4,770
8,434
2,728
39,609
3,153
4,764
8,622
2,754
39,720
3,592
4,839
8,715
2,736
39,888
3,717
4,916
8,947'
2,390'
39,274'
4,333'
5,009'
9,000'
2,378'
39,256'
4,133'
5,107'
9,032
2,376
39,223
4,205
5,177
22 Liabilities........................................................
158,174
163,405
166,982
167,959
168,752
169,409
170,432
171,126
171,495'
171,891'
172,3491
23
24
25
26
27
28
29
30
142,701
141,170
71,816
69,354
1,531
4,565
10,907
146,006
144,070
61,123
82,947
1,936
5,873
11,525
148,606
146,416
56,388
90,028
2,190
6,898
11,478
149,580
147,408
57,737
89,671
2,172
6,964
11,416
150,187
148,018
58,191
89,827
2,169
7,211
11,353
151,765
149,395
58,658
90,736
2,370
6,299
11,344
151,998
149,797
57,651
92,146
2,200
7,117
11,317
152,133
150,109
56,256
93,853
2,042
7,644
11,349
153,439'
151,355'
53,942'
97,413'
2,084'
6 ,692'
12,967'
153,143'
151,051'
52,737'
98,314'
2 ,092'
7 ,426'
12,957'
153,332
151,346
52,035
99,311
1,986
7,753
13,412
4,400
3,182
1,898
1,939
1,849
1,883
1,817
1,682
1,476
1,316
1,331
14 A ssets..............................................................
15
16
17
18
19
20
21
Loans
M ortgage..........................................................
O th e r .................................................................
Securities
U .S. government5 ........................................
State and local g o v ern m en t......................
Corporate and other6....................................
C a s h .......................................................................
Other assets..........................................................
D ep o sits.................................................................
Regular7 ............................................................
Ordinary savings........................................
Time and o th er ..........................................
Other .................................................................
Other liabilities...................................................
General reserve a c c o u n ts...............................
M emo : Mortgage loan com
mitments outstanding8.............................
n .a.
Life insurance companies
31 A ssets..............................................................
389,924
432,282
450,858
455,759 459,362
464,483
468,057
473,529
476,190
463,150
482,264
Securities
G o v ern m en t...................................................
United States9.............................................
State and l o c a l ..........................................
Foreign10......................................................
B u sin ess............................................................
B o n d s............................................................
S tock s............................................................
M o rtgages............................................................
Real estate............................................................
Policy lo a n s..........................................................
Other assets..........................................................
20,009
4,822
6,402
8,785
198,105
162,587
35,518
106,167
11,764
30,146
23,733
0,338
4,888
6,428
9,022
222,332
178,371
39,757
118,421
13,007
34,825
27,563
20,395
4,990
6,349
9,056
224,874
184,329
40,545
125,455
14,085
39,354
26,695
20,736
5,325
6,361
9,050
228,645
186,385
42,260
126,461
14,164
39,649
26,104
20,853
5,361
6,474
9,018
233,652
189,586
44,066
128,089
14,460
40,258
27,171
20,942
5,390
6,484
9,068
236,115
191,229
44,886
128,977
14,702
40,548
26,765
21,204
5,568
6,568
9,068
239,150
191,753
47,397
129,878
15,183
40,878
27,236
21,453
5,753
6,682
9,018
238,048
191,090
46,958
131,145
15,247
41,411
28,836
21,891
6,016
6,831
9,044
240,630
194,889
45,741
131,710
15,235
42,032
26,983
22,092
6,066
6,900
9,126
241,600
195,521
46,079
132,445
16,026
42,604
27,497
32
33
34
35
36
37
38
39
40
41
42
20,833
5,386
6,421
9,026
230,477
187,839
42,638
127,357
14,184
39,925
26,586
n.a.
Credit unions
43 Total assets/liabilities and
44
45
46
47
48
49
50
51
capital......................................................
62,348
65,854
68,102
68,429
69,553
70,515
70,702
71,335
71,709
70,754
71,446
73,214
Federal...................................................................
S ta te .......................................................................
Loans o u tstan d in g.............................................
Federal...............................................................
S ta te ...................................................................
Savings...................................................................
Federal (sh a re s).............................................
State (shares and d ep osits).........................
34,760
27,588
50,269
27,687
22,582
53,517
29,802
23,715
35,934
29,920
53,125
28,698
24,426
56,232
35,530
25,702
37,555
30,547
48,172
25,773
22,399
59,310
32,764
26,546
37,573
30,856
47,829
25,435
22,394
60,574
33,472
27,102
38,168
31,385
47,884
25,401
22,483
61,403
33,964
27,439
39,219
31,296
47,211
25,381
21,830
63,728
35,961
27,767
39,428
39,155
31,547
31,907
47,221
47,299
25,288 ' 25,273
21,933
22,026
63,957
64,304
36,030
36,183
27,927
28,121
39,801
31,908
47,774
25,627
22,147
64,399
36,348
28,051
39,142
31,612
47,309
25,272
22,037
63,874
35,915
27,959
39,636
31,810
47,451
25,376
22,075
64,357
36,236
28,121
40,624
32,590
47,815
25,618
22,197
65,744
36,898
28,846
For notes see bottom of page A28.
A28
1.38
Domestic Financial Statistics □ May 1981
FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
year
1978
year
1979
Fiscal
year
1980
1979
H2
U.S. budget
1 R eceipts*...............................................................
2 Outlays1-2 ..............................................................
3 Surplus, or deficit( - ) ......................................
4
Trust funds........................................................
5
Federal funds3 .................................................
1980
HI
1981
H2
Jan.
Feb.
Mar.
401,997
450,804
-4 8 ,8 0 7
12,693
- 6 1 ,5 3 2
465,940
493,635
-2 7 ,6 9 4
18,335
-4 6 ,0 6 9
520,050
579,613
-5 9 ,5 6 3
8,791
- 6 7 ,7 5 2
233,952
263,004
- 2 9 ,0 5 2
9,679
-3 8 ,7 7 3
270,864
289,905
-1 9 ,0 4 1
4,383
-2 3 ,4 1 8
262,152
310,972
-4 8 ,8 2 1
-2 ,5 5 1
-4 6 ,3 0 6
52,214
59,099
-6 ,8 8 4
- 3 ,4 3 4
-3 ,4 5 1
38,394
53,969
- 1 5 ,5 7 5
1,243
- 1 6 ,8 1 9
44,623
54,217
- 9 ,5 9 3
-6 0 1
- 8 ,9 9 2
- 1 0 ,6 6 1
302
-1 3 ,2 6 1
793
-1 4 ,5 4 9
303
- 5 ,9 0 9
765
- 7 ,7 3 5
-5 2 2
- 7 ,5 5 2
376
-9 6 0
-4 9 4
- 1 ,3 4 0
-1 4 8
- 3 ,4 2 0
-3 5
- 5 9 ,1 6 6
-4 0 ,1 6 2
- 7 3 ,8 0 8
-3 4 ,1 9 7
- 2 7 ,2 9 8
-5 5 ,9 9 8
-8 ,3 3 9
-1 7 ,0 6 3
-1 3 ,0 4 8
59,106
33,641
70,515
31,320
24,435
54,764
6,772
13,916
15,138
-3 ,0 2 3
3,083
-4 0 8
6,929
-3 5 5
3,648
3,059
-1 8 2
- 3 ,4 8 2
6,345
- 6 ,7 3 0
7,964
2,252
-6 8 5
3,909
762
- 5 ,8 5 2
3,762
22,444
16,647
5,797
24,176
6,489
17,687
20,990
4,102
16,888
15,924
4,075
11,849
14,092
3,199
10,893
12,305
3,062
9,243
13,917
3,038
10,879
10,106
2,284
7,822
10,717
3,032
7,685
O ff-budget entities (surplus, or deficit
6 Federal Financing Bank outlays....................
7 Other4 .....................................................................
U.S. budget plus off-budget, including
Federal Financing Bank
8 Surplus, or deficit ( - ) ......................................
Source or financing
9
Borrowing from the p u b lic .........................
10
Cash and monetary assets (decrease, or
increase ( - ) )^ ........................................
11
Other6 .................................................................
M em o:
12 Treasury operating balance (level, end of
p e r io d ) ......................................................
13
Federal Reserve B a n k s ...............................
14
Tax and loan accounts..................................
1. Effective June 1978, earned income credit payments in excess of an indi
vidual’s tax liability, formerly treated as income tax refunds, are classified as outlays
retroactive to January 1976.
2. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was re
classified from an off-budget agency to an on-budget agency in the Department of
Labor.
3. Half-year figures are calculated as a residual (total surplus/deficit less trust
fund surplus/deficit).
4. Includes Postal Service Fund; Rural Electrification and Telephone Revolving
Fund; and Rural Telephone Bank.
5. Includes U .S. Treasury operating cash accounts; special drawing rights; gold
tranche drawing rights; loans to International M onetary Fund; and other cash and
monetary assets.
6.
Includes accrued interest payable to the public; allocations o f special drawing
rights; deposit funds; miscellaneous liability (including checks outstanding) and
asset accounts; seignorage; increment on gold; net gain/loss for U .S . currency
valuation adjustment; net gain/loss for IMF valuation adjustment; and profit on
the sale of gold.
S o u r c e . “Monthly Treasury Statement of Receipts and Outlays of the U .S.
G overnm ent,” Treasury Bulletin, and the Budget o f the United States Government,
Fiscal Year 1981.
NOTES TO TA BL E 1.37
1. Holdings of stock of the Federal H om e Loan Banks are included in “other
assets.”
2. Includes net undistributed incom e, which is accrued by m ost, but not all,
associations.
3. Excludes figures for loans in process, which are shown as a liability.
4. The NAM SB reports that, effective April 1979, balance sheet data are not
strictly comparable with previous months. Beginning April 1979, data are reported
on a net-of-valuation-reserves basis. Prior to that date, data were reported on a
gross-of-valuation-reserves basis.
5. Beginning April 1979, includes obligations of U .S. government agencies. Before
that date, this item was included in “Corporate and other.”
6. Includes securities of foreign governments and international organizations
and, prior to April 1979, nonguaranteed issues o f U .S . government agencies.
7. Excludes checking, club, and school accounts.
8. Commitments outstanding (including loans in process) o f banks in New York
State as reported to the Savings Banks Association of the state of N ew York.
9. Direct and guaranteed obligations. Excludes federal agency issues not guar
anteed, which are shown in the table under “Business” securities.
10.
Issues of foreign governments and their subdivisions and bonds o f the In
ternational Bank for Reconstruction and Developm ent.
N o t e . Savings and loan associations: Estimates by the FH LBB for all associations
in the United States. Data are based on monthly reports o f federally insured
associations and annual reports of other associations. Even when revised, data for
current and preceding year are subject to further revision.
Mutual savings banks: Estimates of National Association of Mutual Savings
Banks for all savings banks in the United States.
Life insurance companies: Estimates of the American Council o f Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for differ
ences between market and book values are not made on each item separately but
are included, in total, in “other assets.”
Credit unions: Estimates by the National Credit Union Administration for a
group of federal and state-chartered credit unions that account for about 30 percent
of credit union assets. Figures are preliminary and revised annually to incorporate
recent benchmark data.
Federal Finance
1.39
A29
U.S. BUDGET RECEIPTS AND OUTLAYS
Millions of dollars
Calendar year
Source or type
Fiscal
year
1978
Fiscal
year
1979
Fiscal
year
1980
1979
1980
1981
H2
HI
H2
Jan.
Feb.
Mar.
R eceipts
1 All sources1......................................................
401,997
465,955
520,050
233,952
270,864
262,152
52,214
38,394
44,623
2 Individual income taxes, n e t...........................
3
W ithheld............................................................
4
Presidential Election Campaign Fun d. . .
5
Nonwithheld......................................................
6
Refunds1............................................................
Corporation income taxes
7 Gross r e ce ip ts.................................................
8
Refunds...............................................................
9 Social insurance taxes and contributions,
n e t ...................................................................
10
Payroll employment taxes and
contributions2..........................................
11
Self-employm ent taxes and
contributions3..........................................
12
Unem ployment in su ran ce...........................
13
Other net receipts4 ........................................
180,988
165,215
39
47,804
32,070
217,841
195,295
36
56,215
33,705
244,069
223,763
39
63,746
43,479
115,488
105,764
3
12,355
2,634
119,988
110,394
34
49,707
40,147
131,962
120,924
4
14,592
3,559
30,964
20,896
1
10,121
54
15,348
19,076
4
1,134
4,867
13,693
22,337
11
3,754
12,410
65,380
5,428
71,448
5,771
72,380
7,780
29,169
3,306
43,434
4,064
28,579
4,518
2,826
667
1,816
1,252
10,203
1,617
123,410
141,591
160,747
71,031
86,597
77,262
14,363
17,211
15,784
99,626
115,041
133,042
60,562
69,077
66,831
12,533
14,562
14,579
4,267
13,850
5,668
5,034
15,387
6,130
5,723
15,336
6,646
417
6,899
3,149
5,535
8,690
3,294
188
6,742
3,502
426
773
631
495
1,563
591
419
174
613
18,376
6,573
5,285
7,413
18,745
7,439
5,411
9,252
24,329
7,174
6,389
12,741
9,675
3,741
2,900
5,254
11,383
3,443
3,091
6,993
15,332
3,717
3,499
6,318
2,523
635
535
1,035
3,273
558
489
951
4,210
661
572
1,117
18 All types1’6 ......................................................
450,804
493,635
579,613
263,004
289,905
310,972
59,099
53,969
54,217
19
20
21
22
23
24
National d e fen se .................................................
International a ffa ir s...........................................
General science, space, and technology . . .
Energy.....................................................................
Natural resources and environm ent..............
Agriculture............................................................
105,186
5,922
4,742
5,861
10,925
7,731
117,681
6,091
5,041
6,856
12,091
6,238
135,856
10,733
5,722
6,313
13,812
4,762
62,002
4,617
3,299
3,281
7,350
1,709
69,132
4,602
3,150
3,126
6,668
3,193
72,457
5,430
3,205
3,997
7,722
1,892
12,682
396
440
915
1,134
2,984
12,841
1,005
531
826
1,016
352
13,560
808
692
475
1,093
-5 4
Commerce and housing c r e d it......................
Transportation......................................................
Community and regional d evelop m en t. . . .
Education, training, em ploym ent, social
services ..........................................................
29 H ealth .....................................................................
30 Income security1 6 ...............................................
3,324
15,445
11,039
2,565
17,459
9,482
7,782
21,120
10,068
3,002
10,298
4,855
3,878
9,582
5,302
3,163
11,547
5,370
988
3,810
867
-2 0 4
1,468
620
377
1,605
782
26,463
43,676
146,180
29,685
49,614
160,159
30,767
58,165
193,100
14,579
26,492
85,967
16,686
29,299
94,605
15,221
31,263
107,912
3,029
5,510
19,299
2,862
5,414
18,795
2,666
5,757
19,242
18,974
3,802
3,737
9,601
43,966
-1 5 ,7 7 2
19,928
4,153
4,153
8,372
52,556
- 1 8 ,4 8 9
21,183
4,570
4,505
8,584
64,504
-2 1 ,9 3 3
10,113
2,174
2,103
4,286
29,045
- 1 2 ,1 6 4
9,758
2,291
2,422
3,940
32,658
- 1 0 ,3 8 7
11,731
2,299
2,432
4,191
35,909
-1 4 ,7 6 9
1,923
383
356
1,293
3,822
-7 3 2
1,955
389
425
113
6,400
-8 3 8
1,028
377
749
98
5,835
-8 7 5
14
15
16
17
Excise ta x e s ..........................................................
Customs deposits.................................................
Estate and gift ta x es...........................................
M iscellaneous receipts5 ....................................
O utlays
25
26
27
28
31
32
33
34
35
36
Veterans benefits and serv ices......................
Administration o f ju stice..................................
General governm ent...........................................
General-purpose fiscal assistance..................
Interest7 .................................................................
Undistributed offsetting receipts7-8 .............
1. Effective June 1978, earned income credit payments in excess o f an individual’s
tax liability, formerly treated as income tax refunds, are classified as outlays ret
roactive to January 1976.
2. O ld-age, disability, and hospital insurance, and railroad retirement accounts.
3. O ld-age, disability, and hospital insurance.
4. Supplementary medical insurance premiums, federal em ployee retirement
contributions, and Civil Service retirement and disability fund.
5. Deposits of earnings by Federal Reserve Banks and other m iscellaneous re
ceipts.
o. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was re
classified from an off-budget agency to an on-budget agency in the Departm ent of
Labor.
7. Effective September 1976, “Interest” and “Undistributed offsetting receipts”
reflect the accounting conversion from an accrual basis to a cash basis for the
interest on special issues for U .S. government accounts.
8. Consists of interest received by trust funds, rents and royalties on the Outer
Continental Shelf, and U .S. government contributions for em ployee retirement.
S o u r c e . “Monthly Treasury Statement of Receipts and Outlays o f the U .S.
G overnm ent” and the Budget o f the U.S. Government, Fiscal Year 1981.
A30
Domestic Financial Statistics □ May 1981
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1979
1978
1980
Item
D ec. 31
Mar. 31
June 30
Sept. 30
D ec. 31
Mar. 31
Sept. 30
June 30
D ec. 31
1 Federal debt outstanding......................................................
797.7
804.6
812.2
833.8
852.2
870.4
884.4
914.3
936.7
2 Public debt secu rities...................................................................
3
Held by public............................................................................
4
Held by agencies.......................................................................
789.2
619.2
170.0
796.8
630.5
166.3
804.9
626.4
178.5
826.5
638.8
187.7
845.1
658.0
187.1
863.5
677.1
186.3
877.6
682.7
194.9
907.7
710.0
197.7
930.2
737.7
192.5
5 Agency se cu ritie s.........................................................................
6
H eld by public............................................................................
7
Held by agencies.......................................................................
8.5
7.0
1.5
7.8
6.3
1.5
7.3
5.9
1.5
7.2
5.8
1.5
7.1
5.6
1.5
7.0
5.5
1.5
6.8
5.3
1.5
6.6
5.1
1.5
6.5
5.0
1.5
8 Debt subject to statutory limit..............................................
790.3
797.9
806.0
827.6
846.2
864.5
878.7
908.7
931.2
9 Public debt secu rities...................................................................
10 Other debt1 .....................................................................................
788.6
1.7
796.2
1.7
804.3
1.7
825.9
1.7
844.5
1.7
862.8
1.7
877.0
1.7
907.1
1.6
929.6
1.6
11 Memo: Statutory debt lim it........................................................
798.0
798.0
830.0
830.0
879.0
879.0
925.0
925.0
935.1
1. Includes guaranteed debt of government agencies, specified participation certificates, notes to international lending organizations, and District of Columbia
stadium bonds.
1.41
GROSS PUBLIC DEBT OF U.S. TREASURY
N o te . Data from Treasury Bulletin (U .S. Treasury Department),
Types and Ownership
Billions of dollars, end of period
1980
Type and holder
1976
1977
1978
1981
1979
Dec.
Jan.
Feb.
Mar.
Apr.
1 Total gross public debt..........................................................
653.5
718.9
789.2
845.1
930.2
934.1
950.5
964.5
964.0
By type
Interest-bearing d e b t ...................................................................
M arketable.......................................................................................
B ills ................................................................................................
N o tes..............................................................................................
B o n d s ...........................................................................................
Nonmarketable1 ............................................................................
Convertible bonds2 ...................................................................
State and local government se r ie s ......................................
Foreign issues3............................................................................
G overnm ent............................................................................
P u b lic .......................................................................................
Savings bonds and n o t e s ........................................................
Government account series4 .................................................
652.5
421.3
164.0
216.7
40.6
231.2
2.3
4.5
22.3
20.8
1.5
72.3
129.7
715.2
459.9
161.1
251.8
47.0
255.3
2.2
13.9
22.2
21.0
1.2
77.0
139.8
782.4
487.5
161.7
265.8
60.0
294.8
2.2
24.3
29.6
28.0
1.6
80.9
157.5
844.0
530.7
172.6
283.4
74.7
313.2
2.2
24.6
28.8
23.6
5.3
79.9
177.5
928.9
623.2
216.1
321.6
85.4
305.7
929.8
628.5
220.4
321.2
86.9
301.3
946.5
642.9
229.0
324.5
89.4
303.5
963.2
661.1
235.3
336.5
89.3
302.1
962.8
657.9
225.8
341.1
91.0
304.9
23.8
24.0
17.6
6.4
72.5
185.1
23.7
23.8
17.4
6.4
71.4
182.2
23.6
24.0
17.5
6.4
70.7
185.0
23.5
24.2
17.7
6.4
70.3
183.8
23.4
24.4
18.0
6.4
69.8
187.0
15 Non-interest-bearing d e b t..........................................................
1.1
3.7
6.8
1.2
1.3
4.2
4.0
1.3
1.2
By holder5
U .S. government agencies and trust funds...........................
Federal Reserve B a n k s ..............................................................
Private in v esto rs............................................................................
Commercial b a n k s .......................................................................
Mutual savings b an k s...................................................................
Insurance c o m p a n ie s...................................................................
Other com panies............................................................................
State and local governm ents.....................................................
147.1
97.0
409.5
103.8
5.9
12.7
27.7
41.6
154.8
102.8
461.3
101.4
5.9
15.1
22.7
55.2
170.0
109.6
508.6
93.1
5.0
14.9
21.2
64.4
187.1
117.5
540.5
91.5
4.7
14.8
25.0
67.4
192.5
121.3
616.4
104.7
5.8
15.2
24.6
74.7
189.5
116.7
627.4
108.1
5.8
15.3
22.8
73.0
192.0
118.4
639.6
107.4
5.8
15.0
22.4
76.0
Individuals
24
Savings b o n d s ............................................................................
25
Other secu rities..........................................................................
26 Foreign and international6..........................................................
27 Other miscellaneous investors7.................................................
72.0
28.8
78.1
38.9
76.7
28.6
109.6
46.1
80.7
30.3
137.8
58.2
79.9
36.2
123.8
97.4
72.2
56.7
134.3
127.9
71.4
62.8
133.9
134.3
70.7
65.5
136.7
140.0
2
3
4
5
6
7
8
9
10
11
12
13
14
16
17
18
19
20
21
22
23
1. Includes (not shown separately): Securities issued to the Rural Electrification
Administration, depository bonds, retirement plan bonds, and individual retire
ment bonds.
2. These nonmarketable bonds, also known as Investment Series B Bonds, may
be exchanged (or converted) at the owner’s option for 1lh percent, 5-year mar
ketable Treasury notes. Convertible bonds that have been so exchanged are re
moved from this category and recorded in the notes category (line 5).
3. Nonmarketable dollar-denominated and foreign currency-denominated series
held by foreigners.
4. H eld almost entirely by U .S . government agencies and trust funds.
5. Data for Federal Reserve Banks and U .S . government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.
n.a.
n.a.
6. Consists of investments of foreign balances and international accounts in the
United States. Beginning with July 1974, the figures exclude non-interest-bearing
notes issued to the International Monetary Fund.
7. Includes savings and loan associations, nonprofit institutions, corporate pen
sion trust funds, dealers and brokers, certain government deposit accounts, and
government sponsored agencies.
N o te . Gross public debt excludes guaranteed agency securities and, beginning
in July 1974, includes Federal Financing Bank security issues.
Data by type of security from M onthly Statement o f the Public D ebt o f the United
States (U .S. Treasury Department); data by holder from Treasury Bulletin.
Federal Finance
1.42
U.S. GOVERNMENT MARKETABLE SECURITIES
A31
Ownership, by maturity
Par value; millions of dollars, end of period
1981
1981
Type o f holder
1979
1980
1979
1980
Feb.
Jan.
Jan.
Feb.
1 to 5 years
All maturities
1 All holders..............................................................................................
530,731
623,186
628,482
642,905
164,198
197,409
192,893
196,029
2 U .S. government agencies and trust funds............................................
3 Federal Reserve B a n k s ................................................................................
11,047
117,458
9,564
121,328
9,527
116,708
9,293
118,435
2,555
28,469
1,990
35,835
1,990
34,043
1,360
34,492
4 Private in v e sto r s.............................................................................................
402,226
69,076
3,204
11,496
8,433
3,209
15,735
291,072
492,294
77,868
3,917
11,930
7,758
4,225
21,058
365,539
502,248
80,451
3,950
11,992
6,954
3,837
20,500
374,563
515,178
79,931
3,930
11,838
7,600
4,103
21,646
386,130
133,173
38,346
1,668
4,518
2,844
1,763
3,487
80,546
159,585
44,482
1,925
4,504
2,213
2,289
4,595
99,577
156,860
43,436
1,904
4,445
2,203
2,380
4,553
97,941
160,177
42,253
1,853
4,148
1,841
2,496
4,711
102,875
5
6
7
8
9
10
11
Commercial b a n k s ....................................................................................
Mutual savings ban k s................................................................................
Insurance c o m p a n ie s................................................................................
Nonfinancial corporations.......................................................................
Savings and loan associations................................................................
State and local governm ents...................................................................
All o th e rs......................................................................................................
Total, within 1 year
255,252
297,385
13 U .S. government agencies and trust funds............................................
14 Federal Reserve B a n k s ................................................................................
1,629
63,219
830
56,858
15 Private in v esto rs.............................................................................................
16
Commercial b a n k s .....................................................................................
17
Mutual savings b an k s................................................................................
18
Insurance c o m p a n ie s ................................................................................
19
Nonfinancial corporations.......................................................................
20
Savings and loan associations................................................................
21
State and local governm ents...................................................................
22
All o th ers......................................................................................................
190,403
20,171
836
2,016
4,933
1,301
5,607
155,539
239,697
25,197
1,246
1,940
4,281
1,646
7,750
197,636
12 All holders..............................................................................................
5 to 10 years
311,965
50,440
56,037
58,727
58,556
792
54,308
1,188
54,785
871
12,977
1,404
13,458
1,404
13,354
1,404
13,770
247,943
28,049
1,283
1,977
3,476
1,236
7,248
204,674
255,992
28,949
1,289
2,250
4,337
1,453
7,974
209,740
36,592
8,086
459
2,815
308
69
1,540
23,314
41,175
5,793
455
3,037
357
216
2,030
29,287
43,969
6,367
466
3,090
392
159
2,047
31,448
43,382
6,054
481
3,000
393
88
2,092
31,275
303,043
10 to 20 years
Bills, within 1 year
23 AH holders..............................................................................................
172,644
216,104
220,423
228,972
27,588
36,854
36,817
38,278
24 U.S. government agencies and trust funds.............................................
25 Federal Reserve B a n k s ................................................................................
0
45,337
1
43,971
*
41,558
1
42,781
4,520
3,272
3,686
5,919
3,686
5,891
3,686
5,903
26 Private in vestors.............................................................................................
27
Commercial b a n k s .....................................................................................
28
Mutual savings bank s................................................................................
29
Insurance c o m p a n ie s................................................................................
30
Nonfinancial corporations.......................................................................
31
Savings and loan associations................................................................
32
State and local governm ents...................................................................
33
All o th ers......................................................................................................
127,306
5,938
262
473
2,793
219
3,100
114,522
172,132
9,856
394
672
2,363
818
5,413
152,616
178,864
11,868
410
685
1,717
403
4,932
158,848
186,190
12,803
410
854
2,212
510
5,154
164,246
19,796
993
127
1,305
218
58
1,762
15,332
27,250
1,071
181
1,718
431
52
3,597
20,200
27,241
1,115
181
1,758
440
42
3,629
20,075
28,690
1,174
184
1,664
436
44
3,822
21,365
Other, within 1 year
Over 20 years
34 All holders..............................................................................................
82,608
81,281
82,620
82,993
33,254
35,500
37,002
38,076
35 U .S. government agencies and trust funds............................................
36 Federal Reserve B a n k s ................................................................................
1,629
17,882
829
12,888
791
12,750
1,187
12,004
1,472
9,520
1,656
9,258
1,656
10,767
1,656
9,484
37 Private in v esto rs.............................................................................................
63,097
14,233
574
1,543
2,140
1,081
2,508
41,017
67,565
15,341
852
1,268
1,918
828
2,337
45,020
69,079
16,181
873
1,291
1,759
833
2,316
45,826
69,802
16,146
879
1,396
2,124
943
2,820
45,493
22,262
1,470
113
842
130
19
3,339
16,340
24,587
1,325
110
730
476
21
3,086
18,838
26,235
1,484
116
722
443
21
3,023
20,425
26,936
1,501
123
776
593
22
3,047
20,875
38
39
40
41
42
43
44
Commercial b a n k s .....................................................................................
Mutual savings b ank s................................................................................
Insurance c o m p a n ie s................................................................................
Nonfinancial corporations.......................................................................
Savings and loan associations.................................................................
State and local governm ents...................................................................
All o th ers......................................................................................................
N o te . Direct public issues only. Based on Treasury Survey of Ownership from
Treasury Bulletin (U .S. Treasury Department).
Data complete for U.S. government agencies and trust funds and Federal Reserve
Banks, but data for other groups include only holdings of those institutions that
report. The following figures show, for each category, the number and proportion
reporting
as
of
Feb.
28,
1981:
(1)
5,347
commercial
banks,
459 mutual savings banks, and 724 insurance companies, each about 80 percent;
(2) 411 nonfinancial corporations and 476 savings and loan associations, each about
50 percent; and (3) 489 state and local governments, about 40 percent.
“All others,” a residual, includes holdings of all those not reporting in the
Treasury Survey, including investor groups not listed separately.
A32
1.43
Domestic Financial Statistics □ May 1981
U.S. GOVERNMENT SECURITIES DEALERS
Par value; averages of daily figures, in millions of dollars
Transactions
1980
1981
1980 and 1981, week ending Wednesday
Item
Feb.
1 U.S. government securities .
2
3
4
5
6
By maturity
B ills ...............................
Other within 1 year .
1-5 years......................
5-10 years....................
Over 10 years.............
By type o f customer
7 U .S. government securities
dealers...............................
8 U .S. government securities
b rok ers.............................
9 Commercial b a n k s ...............
10 All others1 ...............................
D ec. 17
D ec. 24
Dec. 31
10,838
10,285
13,183
21,576
19,794
21,449
23,656
21,858
6,746
237
2,320
1,148
6,173
392
1,889
965
867
7,915
454
2,417
1 ,1 21
1,276
13,840
464
3,461
1,806
2,005
12,124
397
2,257
2,840
2,175
13,559
577
3,492
1,706
2,115
13,781
347
5,409
1,800
2,320
16,183
638
2,384
1,275
1,378
1,268
1,135
1,448
1,807
1,172
2,098
2,408
3,709
2,294
3,567
3,838
1,804
3,508
5,170
1,904
4,660
8,382
2.661
8,726
8,835
2,496
7,290
8,851
2,613
8,273
9.060
3,129
9.369
5,723
2,565
11,163
1,894
2,723
2,667
3,058
3,281
2,230
11 Federal agency securities .
1. Includes, among others, all other dealers and brokers in commodities and
securities, foreign banking agencies, and the Federal Reserve System.
N ote . Averages for transactions are based on number o f trading days in the
period.
1.44
D ec. 10
U.S. GOVERNMENT SECURITIES DEALERS
Jan. 7
Jan. 14
Transactions are market purchases and sales of U.S. government securities deal
ers reporting to the Federal Reserve Bank of New York. The figures exclude
allotments of. and exchanges for, new U .S. government securities, redemptions of
called or matured securities, or purchases or sales of securities under repurchase,
reverse repurchase (resale), or similar contracts.
Positions and Sources of Financing
Par value; averages of daily figures, in millions of dollars
1980
1977
1981
1980. week ending Wednesday
1978
Feb.
Nov. 19
Nov. 26
D ec. 3
Dec. 10
D ec. 17
D ec. 24
Positions1
1 U.S. government securities
5,172
2,656
3,223
4,042
4,055
1,910
3,539
4,266
2,927
4,432
2
3
4
5
6
B ills ..........................................
Other within 1 y e a r ...........
1-5 years.................................
5-10 years...............................
Over 10 years........................
4.772
99
60
92
149
2,452
260
-9 2
40
-4
3,813
-325
-4 5 5
160
30
4.081
- 1 .3 9 4
-4 3
104
1.294
3,874
-8 4 4
-1 9 5
74
1.146
2.310
-9 2 4
-7 9 1
50
1.267
3.526
-9 2 0
-4 1 5
30
1.318
4.066
-9 2 0
-7 1 6
431
1.405
3.935
-1 .6 5 2
-6 8 3
3
1.324
4.146
-1 ,7 5 1
913
-1 9 8
1,323
7 Federal agency securities ..
693
606
1,471
643
78
314
591
542
406
668
Financing2
Reverse repurchase agreements3 .
Overnight and con tin u in g .........
Term a g reem en ts........................
Repurchase agreements4 ................
10
Overnight and con tin u in g .........
11
Term a g reem en ts........................
8
9
f
1
n.a.
1
\
f
1
n.a.
I
1
|T
1
n.a.
1
\
12.074
34.249
11.762
25.750
8.232
25.008
9.768
29,050
8.381
31.980
10.503
30.993
12,925
32,422
11.091
33.633
10.697
38,899
25.303
29.426
31.613
22.289
28.523
26.256
26.210
24,536
19.884
31.815
26.340
24.986
27,642
27,262
29.500
25.495
20,095
38.515
1. 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. tradedate basis, including any such securities that have been sold under agreements to
repurchase. The maturities of some repurchase agreements are sufficiently long,
however, to suggest that the securities involved are not available for trading pur
poses. Securities owned, and hence dealer positions, do not include securities
purchased under agreement to resell.
2. Figures cover financing involving U .S. government and federal agency secu
rities. negotiable CDs, bankers acceptances, and commercial paper.
3. Includes all reverse agreements, including those that have been arranged to
make delivery on sales and those for which the securities obtained have been used
as collateral on borrowings.
4. Includes both repurchase agreements undertaken to finance positions and
“matched book" repurchase agreements.
N o t l . Data for positions are averages of daily figures, based on the number of
trading days in the period. Data for financing are based only on W ednesday figures.
Federal Finance
1.45
A33
FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt outstanding
Millions of dollars, end of period
1980
Agency
1976
1977
1981
1978
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
1 Federal and federally sponsored agencies1 ........................
103,848
112.472
137,063
182,713
188,076
188,743
193,229
195,056
194,926
2 Federal a g e n c ie s...........................................................................
3
Defense Departm ent-..............................................................
22.419
1.113
8.574
575
22.760
983
8.671
581
23.488
968
8.711
588
27.618
641
10.728
495
27.797
636
10.715
490
27.941
631
10.696
486
28.606
610
11.250
477
28.769
600
11.239
476
28.596
591
11.201
468
4.120
2.998
4.935
104
3.743
2.431
6.015
336
3.141
2.364
7.460
356
2.842
1.770
10.660
482
2.842
1.770
10.835
509
2.842
1.770
11.010
506
2.817
1.770
11.190
492
2.817
1.770
11.375
492
2.817
1.770
11.550
199
81.429
16.811
1.690
30.565
17.127
10.494
4.330
410
2
89.712
18.345
1.686
31.890
19.118
11.174
4.434
2.548
515
2
113.575
27.563
2.262
41.080
20.360
11.469
4.843
5.081
915
2
155.095
36.710
2.537
52.382
12.765
1.821
584
45.950
2.345
1
160.279
38.819
2.537
53.889
12.365
1.821
584
47.888
2.375
1
160.802
39.380
2.537
53.643
12.365
1.821
584
48.021
2.450
1
164.623
41.258
2.536
55.185
12.365
1.821
584
48.153
2.720
1
166.287
41.819
2.518
54.605
11.507
1.388
584
50.645
3.220
1
166.330
42.275
2.514
54.110
11.507
1.388
584
50.675
3.275
2
M lmo :
20 Federal Financing Bank debt7-9 ..........................................
28,711
38,580
51,298
82,559
83,903
85,440
87,460
88,420
89,444
Lending to federal and federally sponsored agencies
Export-Import Bank4 ...................................................................
Postal Service7 ................................................................................
Student Loan Marketing Association8 .................................
Tennessee Valley A u th ority .....................................................
United States Railway Association7 ......................................
5.208
2.748
410
3.110
104
5.834
2.181
515
4.190
336
6.898
2.114
915
5.635
356
10.067
1.520
2 ^45
8.935
482
10.067
1.520
2.375
9.110
509
10.067
1.520
2.450
9.285
506
10.654
1.520
2.720
9.465
492
10.654
1.520
3.220
9.650
492
10.654
1.520
3.275
9.825
199
Other Lending10
26 Farmers Home Administration.................................................
27 Rural Electrification Administration......................................
28 Other..................................................................................................
10.750
1.415
4.966
16.095
2.647
6.782
23.825
4.604
6.951
37.961
8.425
12.824
38.466
8.646
13.210
39.431
8.760
13.421
39.431
9.196
13.982
39.271
9.471
14.142
39.851
10.212
13.908
5
6
7
8
9
Federal Housing Administration5 ......................................
Government National Mortgage Association
participation certificates6 ...............................................
Postal Service7 ...........................................................................
Tennessee Valiev A u th o rity .................................................
United States Railway Association7 .................................
10 Federally sponsored agencies1 .................................................
11
Federal H om e Loan B anks...................................................
12
Federal Home Loan Mortgage C orp oration ..................
13
Federal National Mortgage A ssociation ...........................
14
Federal Land B an k s................................................................
15
Federal Intermediate Credit B an k s...................................
16
Banks for C oop eratives..........................................................
17
Farm Credit B anks*................................................................
18
Student Loan Marketing Association8 .............................
19
O ther................................. "..........................................................
21
22
23
24
25
1. In September 1977 the Farm Credit Banks issued their first consolidated bonds,
and in January 1979 they began issuing these bonds on a regular basis to replace
the financing activities of the Federal Land Banks, the Federal Intermediate Credit
Banks, and the Banks for Cooperatives. Line 17 represents those consolidated
bonds outstanding, as well as any discount notes that have been issued. Lines 1
and 10 reflect the addition of this item.
2. Consists of mortgages assumed by the Defense Department between 1957 and
1963 under family housing and homeowners assistance programs.
3. Includes participation certificates reclassified as debt beginning Oct. 1. 1976.
4. Off-budget Aug. 17. 1974. through Sept. 30. 1976; on-budget thereafter.
5. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the se
curities market.
6. Certificates of participation issued prior to fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Admin
istration; Department of Health. Education, and Welfare; Department
of Housing and Urban Development: Small Business Administration; and the
Veterans Administration.
7. Off-budget.
8. Unlike other federally sponsored agencies, the Student Loan Marketing A s
sociation may borrow from the Federal Financing Bank (FFB) since its obligations
are guaranteed by the Department of Health. Education, and Welfare.
9. The FFB. which began operations in 1974. is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB incurs
debt solely for the purpose of lending to other agencies, its debt is not included in
the main portion of the table in order to avoid double counting.
10. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any partic
ular agency being generally small. The Farmers Home Administration item consists
exclusively of agency assets, while the Rural Electrification Administration entry
contains both agency assets and guaranteed loans.
A34
1.46
Domestic Financial Statistics □ May 1981
NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
1980
Type of issue or issuer,
or use
1978
1979
Aug.
1 All issues, new and refunding1 ..............................................................
2
3
4
5
Type o f issue
General o b lig a tio n ....................................................................................
Revenue ........................................................................................................
Housing Assistance A d m in istra tio n ^ .......................................................
U.S. government lo a n s ...........................................................................
1981
1980
Sept.
Oct.
Nov.
Dec.
Jan.
48,607
43,490
48,462
3,957
4,532
4,496
2,928
3,859
2,587
17.854
30.658
12.109
31.256
14.100
34.267
849
3,097
1.363
3.160
1,056
3,419
734
2,183
558
3,297
710
1,865
95
125
95
11
9
21
11
4
12
Type o f issuer
6 State ..............................................................................................................
7 Special district and statutory authority..............................................
8 Municipalities, counties, townships, school districts......................
6.632
24.156
17.718
4.314
23.434
15.617
5.304
26.972
16.090
303
2.282
1.361
643
2,792
1.088
195
2.863
1.416
323
1,638
955
127
2,332
1,395
478
1,383
714
9 Issues for new capital, total.....................................................................
37,629
41,505
46,736
3,929
3,894
4,472
2,715
3,760
2,573
Use o f proceeds
Education......................................................................................................
Transportation.............................................................................................
Utilities and conservation.......................................................................
Social welfare...............................................................................................
Industrial a i d ...............................................................................................
Other p u rp oses...........................................................................................
5.003
3.460
9.026
10.494
3.526
6.120
5.130
2.441
8.594
15.968
3.836
5.536
4.572
2.621
8.149
19.958
3.974
7.462
274
99
1.186
1,485
393
492
433
425
737
1.385
375
539
470
282
903
1.403
595
819
211
256
369
1,076
412
391
198
53
408
2.465
295
341
323
146
625
770
316
393
10
11
12
13
14
15
1. Par amounts of long-term issues based on date of sale.
2. Only bonds sold pursuant to the 1949 Housing A ct. which are secured by
contract requiring the Housing Assistance Administration to make annual contri
butions to tne local authority.
1.47
S o u r c e . Public Securities Association.
NEW SECURITY ISSUES of Corporations
Millions of dollars
Type of issue or issuer.
1980
1978
1979
1981
1980
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
1 All issues*........................................................................
47,230
51,533
72.886
5,437
5,025
5,728
3,827
5,376
5,573
4,157
2 Bonds...............................................................................
36,872
40,208
52,523
4,213
2,916
3,275
2,055
2,528
3,373
2,834
Type o f offering
3 P u b lic ......................................................................................
4 Private placem ent................................................................
19.815
17.057
25.814
14.394
41.545
10.978
3.843
370
2.421
495
2.756
519
1.405
650
1.719
809
2.928
445
2.408
426
Industry group
M anufacturing.......................................................................
Commercial and miscellaneous........................................
Transportation.......................................................................
Public utility...........................................................................
Com m unication.....................................................................
Real estate and financial...................................................
9.572
5.246
2.007
7.092
3.373
9.586
9.678
3.948
3.119
8.153
4.219
11.094
15.217
6.463
3.217
9.504
6.658
11.464
1.545
206
346
971
580
565
553
390
409
569
517
477
614
312
236
754
791
568
88
432
86
565
163
722
470
302
110
277
584
784
1.635
231
353
800
48
306
1.140
356
45
593
272
430
11 Stocks .............................................................................
10,358
11,325
20.363
1,224
2,109
2,453
1,772
2,848
2,200
1,323
Type
12 Preferred..................................................................................
13 Com m on..................................................................................
2.832
7.526
3.574
7.751
3.624
16.739
101
1.123
392
1.717
535
1.918
256
1.516
241
2.607
369
1.831
149
1.174
Industry group
M anufacturing.......................................................................
Commercial and miscellaneous........................................
Transportation.......................................................................
Public utility...........................................................................
Com m unication....................................................................
Real estate and financial...................................................
1.241
1,816
263
5.140
264
1.631
1.679
2.623
255
5.171
303
12.931
4.831
5.166
472
6.230
567
3.095
293
238
32
463
46
152
502
569
54
633
6
345
848
321
117
526
67
574
418
509
53
227
113
452
839
904
18
669
65
348
614
603
124
562
14
284
204
589
81
260
31
159
5
6
7
8
9
10
14
15
16
17
18
19
1.
Figures, which represent gross proceeds of issues maturing in more than one
year. sold for cash in the United States, are principal amount or number of units
multiplied by offering price. Excludes offerings of less than $1 ()().()()(). secondary
offerings, undefined or exempted issues as defined in the Securities Act of
1933. employee stock plans, investment companies other than closed-end. intra
corporate transactions, and sales to foreigners,
S o u r c e . Securities and Exchange Commission.
Corporate Finance
1.48
OPEN-END INVESTMENT COMPANIES
A35
Net Sales and Asset Position
Millions of dollars
1980
Item
1979
1981
1980
Aug.
Sept.
Oct.
Nov.
D ec.
Jan.
Feb.
Mar.
In v estm en t C om panies1
1
2
3
Sales of own shares2 ............................................................
Redem ptions of own shares3.............................................
Net sa le s ..................................................................................
7,495
8,393
-8 9 8
15,266
12,012
3,254
1,507
1,019
488
1,405
1,228
177
1,523
1,362
161
1,289
1,086
203
1,242
1,720
-4 7 8
1,676
1,193
483
4
5
6
Assets4 ....................................................................................
Cash position5 ...................................................................
Other....................................................................................
49,277
4,983
44,294
58,400
5,321
53,079
54,941
5,619
49,322
55,779
5,481
50,298
56,156
5,460
50,696
60,329
5,467
54,862
58,400
5,321
53,079
56,160
4,636
51,524
1,347
960
387
56,452'
4,882
51,570'
1,696
1,112
584
59,146
4,971
54,175
5.
Also includes all U .S. government securities and other short-term debt se
curities.
1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment
of capital gains distributions and share issue of conversions from one fund to another
in the same group.
3. Excludes share redemption resulting from conversions from one fund to an
other in the same group.
4. Market value at end of period, less current liabilities.
N o te . Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the Se
curities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
1.49 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1979
Account
1
Profits before tax............................................................
2 Profits tax liability.................................................................
3
4
5
6
7
Profits after ta x .....................................................................
D ivid en d s............................................................................
Undistributed p r o fits.....................................................
Capital consumption allowances......................................
Net cash flo w .........................................................................
1978
1979
Q2
Q3
Q4
Ql
Q2
Q3
Q4
223.3
255.4
245.5
250.9
262.0
255.4
277.1
217.9
237.6
249.2
83.0
140.3
4 4 .6 '
95.7 '
122.9
218.6'
87.6
167.7
50.2'
117.6'
139.5
257.1'
82.3
163.1
56.0
107.1
158.3
265.4
86.4
164.5
49.8 '
114.7'
137.2
251.9'
88.4
173.6
50.2'
123.4'
142.6
266.0'
87.2
168.2
51.6'
116.6'
146.4
263.0'
94.2
182.9
53.9 '
129.0'
151.7
280.7'
71.5
146.4
55.7 '
90.7 '
155.4
2 46.1'
78.5
159.1
56.7 '
102.4'
160.5
267.9'
85.1
164.1
57.7
106.4
165.4
271.8
S o u rce. Survey o f Current Business (U .S . Department of Commerce).
1980
1980
A36
1.50
Domestic Financial Statistics □ May 1981
NONFINANCIAL CORPORATIONS
Current Assets and Liabilities
Billions of dollars, except for ratio
1980
1979
Account
1975
1976
1977
1978
03
Q4
Ql
Q2
Q3
Q4
1 Current a s s e t s .......................................................................
759.0
826.8
902.1
1,030.0
1,169.5
1,200.9
1,235.2
1,233.8
1,255.8
1,279.9
2
3
4
5
6
Cash...........................................................................................
U .S . government secu rities...............................................
Notes and accounts receivab le........................................
Inventories..............................................................................
O ther.........................................................................................
82.1
19.0
272.1
315.9
69.9
88.2
23.4
292.8
342.4
80.1
95.8
17.6
324.7
374.8
89.2
104.5
16.3
383.8
426.9
98.5
103.7
15.8
453.0
489.4
107.7
116.1
15.6
456.8
501.7
110.8
110.2
15.1
471.2
519.5
119.3
111.5
13.8
464.2
525.7
118.7
113.2
16.3
479.2
525.1
122.0
120.8
17.0
491.1
525.1
125.9
7 Current lia b ilities.................................................................
451.6
494.7
549.4
665.5
777.8
809.1
838.3
828.1
852.1
877.2
8 Notes and accounts p a y a b le .............................................
9 O ther.........................................................................................
264.2
187.4
281.9
212.8
313.2
236.2
373.7
291.7
438.8
339.0
456.3
352.8
467.9
370.4
463.1
364.9
477.3
374.8
498.2
379.0
10 Net working capital..............................................................
307.4
332.2
352.7
364.6
391.7
391.8
397.0
405.7
403.7
402.7
11 M em o: Current ratio 1........................................................
1.681
1.672
1.642
1.548
1.504
1.484
1.474
1.490
1.474
1.459
1. Ratio of total current assets to total current liabilities.
All data in this table reflect the most current benchmarks. Complete data are
available upon request from the Flow of Funds Section, Division of Research and
Statistics.
N o t e . For a description of this series, see “Working Capital of Nonfinancial
Corporations” in the July 1978 B u l l e t i n , pp. 533-37.
S o u r c e . Federal Trade Commission.
1.51
TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1979
Industry
1979
1980
1980
1981
198U
Q4
Ql
Q2
Q3
Q4
Q l2
Q 22
1 Total nonfarm b u sin e ss.....................................................
270.46
295.63
325.72
284.30
291.89
294.36
296.23
299.58
310.10
317.29
Manufacturing
2 Durable goods industries...................................................
3 Nondurable goods industries.............................................
51.07
47.61
58.91
56.90
66.47
63.38
55.03
51.55
58.28
53.49
59.38
56.32
58.19
58.21
59.77
58.86
61.67
59.51
63.84
62.84
11.38
13.51
15.87
11.86
11.89
12.81
13.86
15.28
15.36
15.57
4.03
4.01
4.31
4.25
4.01
3.82
4.40
4.11
4.36
4.24
4.55
4.41
4.46
3.90
4.11
4.06
4.27
3.76
3.98
4.06
4.18
4.54
3.77
3.39
3.87
4.07
4.06
4.46
3.32
4.05
27.65
6.31
79.26
34.83
28.12
7.32
81.79
36.99
30.24
8.03
86.93
41.93
27.16
6.92
82.69
35.90
28.98
7.28
82.17
37.34
27.91
7.12
81.07
37.66
28.14
7.44
81.19
36.97
27.54
7.41
82.91
36.11
28.90
7.99
84.33
40.34
29.26
8.39
84.17
41.39
Nonmanufacturing
4 M ining.......................................................................................
Transportation
5
R a ilro a d ..............................................................................
6
A ir .........................................................................................
7
O ther....................................................................................
Public utilities
8
E lectric................................................................................
9
Gas and o th e r ...................................................................
10 Trade and se rv ic e s..............................................................
11 Communication and other2 ...............................................
1. Anticipated by business.
2. “Other” consists of construction; social services and membership organiza
tions; and forestry, fisheries, and agricultural services.
S o u r c e . Survey o f Current Business ( U .S . Dept, of Commerce).
Corporate Finance
1.52
DOMESTIC FINANCE COMPANIES
A37
Assets and Liabilities
Billions of dollars, end of period
1980
Account
1974
1975
1976
1977
1978
1979
Q2
Ql
Q3
Q4
A ssets
1
2
3
4
5
6
7
8
Accounts receivable, gross
Consum er................................................................................
B u sin e ss..................................................................................
T o t a l....................................................................................
Less: Reserves for unearned income and lo sse s----Accounts receivable, n e t ...................................................
Cash and bank d ep osits.....................................................
S ecu rities................................................................................
All oth er..................................................................................
9 Total assets......................................................................
38.6
44.7
83.4
10.5
72.9
2.6
1.1
12.6
44.0
55.2
99.2
12.7
86.5
2.6
.9
14.3
52.6
63.3
116.0
15.6
100.4
3.5
1.3
17.3
65.7
70.3
136.0
20.0
116.0
12.0
36.0
39.3
75.3
9.4
65.9
2.9
1.0
11.8
79.6
81.6
89.2
104.3
122.4
9.7
20.7
8.0
22.2
6.3
23.7
5.9
29.6
4.9
26.5
5.5
4.5
27.6
6.8
5.4
32.3
8.1
6.2
36.0
11.5
36.1
37.2
73.3
9.0
64.2
3.0
.4
67.7
70.6
138.4
20.4
118.0
70.2
70.3
140.4
21.4
119.0
71.7
66.9
138.6
22.3
116.3
73.6
72.3
145.9
23.3
122.6
23.7
26.1
28.3
27.5
140.9
141.7
145.1
144.7
150.1
6.5
34.5
8.5
43.3
9.7
40.8
10.1
40.7
10.1
40.5
13.2
43.4
8.1
43.6
12.6
8.2
46.7
14.2
7.4
48.9
15.7
7.9
50.5
16.0
7.7
52.0
14.6
7.5
52.4
14.3
24.9'
Liabilities
10 Bank lo a n s..............................................................................
11 Commercial paper................................................................
Debt
12
Short-term, n .e .c ..............................................................
13
Long-term n .e .c ................................................................
14
Other....................................................................................
15 Capital, surplus, and undivided profits........................
12.4
12.5
13.4
15.1
17.2
19.9
19.2
19.9
19.8
19.4
16 Total liabilities and capital............................................
79.6
81.6
89.2
104.3
122.4
140.9
141.7
145.1
144.7
150.1
1. Beginning Q l 1979, asset items on lines 6, 7, and 8 are combined.
N ote . Components may not add to totals due to rounding.
1.53
DOMESTIC FINANCE COMPANIES
Business Credit
Millions of dollars, seasonally adjusted except as noted
Type
Accounts
receivable
outstanding
Feb. 28,
19811
Changes in accounts
receivable
1980
Dec.
Extensions
1981
Jan.
1980
Feb.
Repayments
1980
1981
1981
Dec.
Jan.
Feb.
Dec.
Jan.
Feb.
1 Total..................................................................................................
72,932
1,982
702
280
18,308
16,811
18,207
16,326
16,109
17,927
2 Retail automotive (commercial v eh icles)........................................
3 Wholesale autom otive............................................................................
4 Retail paper on business, industrial and
farm eq u ip m en t..............................................................................
5 Loans on commercial accounts receivable and factored com
mercial accounts r e ce iv a b le ........................................................
6 All other business cred it.......................................................................
11,968
11,691
-151
434
-1 2 6
-3 1 0
-1 6 0
-4 9 4
923
5,564
921
5,554
885
5,351
1,074
5,130
1,047
5,864
1,045
5,845
23,657
876
458
591
1,562
1.564
1,800
686
1,106
1,209
7,650
17,966
1,195
-372
519
161
-2 6 2
605
7,827
2,432
6,362
2,410
7,792
2,379
6,632
2,804
5,843
2,249
8,054
1,774
1. Not seasonally adjusted.
A38
1.54
Domestic Financial Statistics □ May 1981
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1981
1980
Item
1978
1979
1980
Sept.
Oct.
Nov.
D ec.
Jan.
Feb.
Mar.
Terms and yields in primary and secondary markets
P rimary M arkets
1
2
3
4
5
6
Conventional mortgages on new homes
Terms1
Purchase price (thousands of d o lla rs)...........................
Am ount of loan (thousands of dollars).........................
Loan/price ratio (p ercen t).................................................
Maturity ( y e a r s ) ...................................................................
Fees and charges (percent of loan amount)2 .............
Contract rate (percent per a n n u m )...............................
62.6
45.9
75.3
28.0
1.39
9.30
74.4
53,3
73.9
28.5
1.66
10.48
83.5
59.3
73.3
28.2
2.10
12.25
83.7
58.7
72.2
27.6
2.10
11.95
84.0
61.3
75.0
28.2
2.16
12.20
77.1
56.1
75.2
27.6
2.15
12.62
90.1'
63.0
72.9
28.2
2.40
12.80
87.0'
63.0'
75.6
29.1'
2.40'
12.80'
90.3
65.6
75.6
29.0
2.59
13.02
90.6
64.4
74.0
28.7
2.64
13.48
9.54
9.68
10.77
11.15
12.65
13.95
12.35
13.70
12.60
14.10
13.04
14.70
13.28'
15.05
13.26'
14.95
13.54
15.10
14.02
15.25
9.70
8.98
10.87
10.22
13.42
12.55
14.26
12.84
14.38
12.91
14.47
13.55
14.08
13.62
14.23
13.50
14.79
14.13
15.04
14.22
9.77
10.01
11.17
11.77
14.11
14.43
14.77
14.45
14.94
14.70
15.53
15.30
15.21
15.54
14.87'
14.95
15.24
15.05
15.67
15.33
57,327
38,969c
57,390
38,955c
18,358
18,435
Yield (percent p e r annum)
7 FHLBB s e r ie s * .....................................................................
8 H U D series4............................................................................
S econdary M arkets
9
10
11
12
Yield (percent per annum)
FH A mortgages (H U D series)5 ......................................
G NM A securities6.................................................................
FNM A auctions7
Government-underwritten loans.................................
Conventional lo a n s..........................................................
Activity in secondary markets
F ederal N ational M ortgage A ssociation
Mortgage holdings (end o f period)
14
15
16
F H A -in su red .....................................................................
V A -guaranteed.................................................................
C on ven tional.....................................................................
Mortgage transactions (during period)
17 P urchases................................................................................
18 S a l e s .........................................................................................
43,311
21,243c
10,544
11,524
51,091
57,327 c
24,489c 38,9698, c
10,496
16,106
18,358
12,303
9
10,805
0
8,100
0
500
0
771
0
579
0
855
0
185
0
161
0
87
0
18,959
9,185
10,179
6,409
8,044
3,278
1,070
4,789
514
4,399
472
3,963
403
3,278
241
3,063
244
2,683
320
2,173
12,978
6,747.2
8,860
3,921
8,605
4,002
907.0
538.0
427.8
257.7
252.0
135.6
242.1
110.8
210.7
93.0
155.3
104.7
139.1
114.5
9,933.0
5,111
4,495
2,344
3,639
1,749
347.7
209.8
107.6
93.9
81.6
68.8
84.8
54.1
32.0
30.3
149.2
97.6
126.9
92.0
3,064
1,243
1,165
4,035
1,102
1,957
5,067
1,033
2,830
4,543
1,050
3,492
4,727
1,044
3,629
4,843
1,038
3,715
5,067
1,033
2,830
5,039
1,029
2,825
5,107
1,025
2,883
5,161
1,021
2,931
6,525
6,211
5,717
4,544
3,722
2,526
521
275
398
187
231
94
285
48
152
168
174
94
148
127
7,451
1,410
5,542
797
3,859
447
218
934
222
726
180
653
126
447
203
487
294
394
768
699
55,632
37,558c
18,074
56,188
38,040c
18,148
56,619
38,381c
18,238c
57,434
57,362
38,972c
18,462
38,878
18,484
Mortgage comm itm ents9
19 Contracted (during p e r io d ) ..........................................
20 Outstanding (end of p erio d ).............................................
A uction o f 4-month comm itm ents to buy
Government-underwritten loans
O ffered ................................................................................
A ccepted..............................................................................
Conventional loans
23
O ffered ................................................................................
24 A ccepted ......................................................................
21
22
F ederal H ome L oan M ortgage C orporation
M ortgage holdings (end o f p e rio d )10
25 T o t a l.........................................................................................
26 F H A /V A ..............................................................................
27
C on ven tional.....................................................................
M ortgage transactions (during period)
28 Purchases................................................................................
29 S a l e s .........................................................................................
M ortgage com m itm ents11
30 Contracted (during p e r io d )...............................................
31 Outstanding (end of p erio d ).............................................
1. W eighted averages based on sample surveys o f mortgages originated by major
institutional lender groups. Com piled by the Federal H om e Loan Bank Board in
cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and “points” paid (by the borrower
or the seller) in order to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages,
rounded to the nearest 5 basis points; from Departm ent o f H ousing and Urban
D evelopm ent.
5. Average gross yields on 30-year, minimum-downpayment, Federal Housing
Administration-insured first mortgages for immediate delivery in the private sec
ondary market. Any gaps in data are due to periods o f adjustment to changes in
maximum permissible contract rates.
6. Average net yields to investors on G overnm ent National Mortgage A ssoci
ation guaranteed, mortgage-backed, fully m odified pass-through securities,
assuming prepayment in 12 years on pools of 30-year FH A /V A mortgages carrying
the prevailing ceiling rate. Monthly figures are unweighted averages o f M onday
quotations for the month.
7. Average gross yields (before deduction o f 38 basis points for mortgage serv
icing) on accepted bids in Federal National Mortgage Association’s auctions o f 4month commitments to purchase hom e mortgages, assuming prepayment in 12
years for 30-year mortgages. N o adjustments are made for FN M A commitment
fees or stock related requirements. Monthly figures are unweighted averages for
auctions conducted within the month.
8. Beginning March 1980, FHA-insured and V A-guaranteed mortgage holdings
in lines 14 and 15 are combined.
9. Includes some multifamily and nonprofit hospital loan commitments in ad
dition to 1- to 4-family loan commitments accepted in F N M A ’s free market auction
system, and through the FN M A -G N M A tandem plans.
10. Includes participation as well as whole loans.
11. Includes conventional and government-underwritten loans.
Real Estate Debt
1.55
A39
MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
1980
Type of holder, and type of property
1978
1979
Ql
1 All holders..............................................................................
2
3
4
5
1- to 4-fam ily..................................................................................
Multifamily.......................................................................................
C om m ercial....................................................................................
F a r m .................................................................................................
6 Major financial institutions.......................................................
Commercial banks1...................................................................
8
1- to 4-fam ily.........................................................................
9
M ultifamily..............................................................................
10
C om m ercial...........................................................................
11
F a rm .........................................................................................
7
1981
1980'
Q2
Q3
Q 4'
Ql
1,169,412'
1,326,750'
1,451,840
1,357,660'
1,380,928'
1,414,881'
1,451,840
1,473,919
765,217'
121,138'
211,851'
71,206
878,931'
128,852'
236,451'
82,516
960,422
136,580
258,338
96,500
897,608'
130,363'
242,776'
86,913
910,286'
132,194'
247,444'
91,004
935,393'
134,193'
251,651'
93,644
960,422
136,580
258,338
96,500
972,687
139,048
261,943
100,241
848,177
214,045
129,167
10,266
66,115
8,497
938,567'
245,187
149,460
11,180
75,957
8,590
998,386
264,602
160,746
12,304
82,688
8,864
951,276'
250,702
152,553
11,557
77,993
8,599
958,750'
253,103
153,753
11,764
79,110
8,476
977,281'
258,003
156,737
11,997
80,626
8,643
998,386
264,602
160,746
12,304
82,688
8,864
1,007,266
267,103
161,873
12,467
83,782
8,981
99,827
65,307
17,180
17,120
60
99,151
64,865
17,223
17,004
59
99,150
64,864
17,223
17,004
59
99,306
64,966
17,249
17,031
60
99,827
65,307
17,340
17,120
60
99,840
65,316
17,342
17,122
60
12
13
14
15
16
Mutual savings b ank s..............................................................
1- to 4-fam ily.........................................................................
Multifamily..............................................................................
C om m ercial...........................................................................
F a rm .........................................................................................
95,157
62,252
16,529
16,319
57
98,908
64,706
17,340
16,963
59
17
18
19
20
Savings and loan associations...............................................
1- to 4-fam ily.........................................................................
Multifamily..............................................................................
C om m ercial...........................................................................
432,808
356,114
36,053
40,461
475,688'
394,345'
37,579'
43,764'
502,812
419,446
38,113
45,253
478,952'
398,009'
37,215'
43,728'
481,042'
399,746'
37,329'
43,967'
491,895'
409,896'
37,728'
44,271'
502,812
419,446
38,113
45,253
507,040
422,964
38,443
45,633
21
22
23
24
25
Life insurance c o m p a n ie s.....................................................
1- to 4-fam ily.........................................................................
Multifamily..............................................................................
C om m ercial............................................................................
F a rm .........................................................................................
106,167
14,436
19,000
62,232
10,499
118,784
16,193
19,274
71,137
12,180
131,145
17,911
19,614
80,776
12,844
122,471
16,850
19,590
73,618
12,413
125,455
17,796
19,284
75,693
12,682
128,077
17,996
19,357
77,995
12,729
131,145
17,911
19,614
80,776
12,844
133,283
18,203
19,934
82,093
13,053
114,300
4,642
704
3,938
103,921'
3,919'
749'
3,170'
108,539'
4,466'
736'
3,730'
110,526'
4,389'
719'
3,670
114,300
4,642
704
3,938
117,011
4,966
730
4,236
26 Federal and related agencies.....................................................
Government National Mortgage Association..................
27
28
1- to 4-fam ily.........................................................................
29
Multifamily..............................................................................
30
31
32
33
34
35
36
37
81,739'
3,509
877
2,632
97,084'
3,852
763
3,089
Farmers Home Administration............................................
1- to 4-fam ily.........................................................................
M ultifamily..............................................................................
C om m ercial............................................................................
F a r m .........................................................................................
926
288
320
101
217
1,274
417
71
174
612
3,492
916
610
411
1,555
2,845'
1,139'
408'
409'
889'
3,375'
1,383'
636'
402'
954'
3 ,525'
978'
774'
370'
1,403'
3,492
916
610
411
1,555
3,542
926
620
426
1,570
Federal Housing and Veterans A dm inistration.............
1- to 4-fam ily.........................................................................
Multifamily..............................................................................
5,305'
1,673'
3,632'
5,555'
1,955'
3,600'
5,640
2,051
3,589
5,621'
2,022'
3,599'
5,691'
2,085'
3,606'
5,600'
1,986'
3,614'
5,640
2,051
3,589
5,723
2,098
3,625
39
40
Federal National Mortgage A ssociation ...........................
1- to 4-fam ily.........................................................................
Multifamily..............................................................................
43,311
37,579
5,732
51,091'
45,488'
5,603'
57,327
51,775
5,552
53,990
48,394
5,596
55,419
49,837
5,582
55,632
50,071
5,561
57,327
51,775
5,552
57,362
51,842
5,520
41
42
43
Federal Land B an k s................................................................
1- to 4-fam ily.........................................................................
F a rm .........................................................................................
25,624
927
24,697
31,277
1,552
29,725
38,131
2,099
36,032
33,311
1,708
31,603
35,574
1,893
33,681
36,837
1,985
34,852
38,131
2,099
36,032
40,258
2,228
38,030
44
45
Federal H ome Loan Mortgage C orp oration ..................
1- to 4-fam ily.........................................................................
Multifamily..............................................................................
3,064
2,407
657
4,035
3,059
976
5,068
3,873
1,195
4,235
3,210
1,025
4,014
3,037
977
4,543
3,459
1,084
5,068
3,873
1,195
5,160
3,952
1,208
47 Mortgage pools or trusts2 ..........................................................
Government National Mortgage Association..................
48
49
1- to 4-fam ily.........................................................................
50
Multifamily..............................................................................
88,633
54,347
52,732
1,615
119,278
76,401
74,546
1,855
142,258
93,874
91,602
2,272
124,632
80,843
78,872
1,971
129,647
84,282
82,208
2,074
136,583
89,452
87,276
2,176
142,258
93,874
91,602
2,272
146,814
97,184
94,810
2,374
Federal H ome Loan Mortgage C orp oration ..................
1- to 4-fam ily.........................................................................
Multifamily..............................................................................
11,892
9,657
2,235
15,180
12,149
3,031
16,854
13,471
3,383
15,454
12,359
3,095
16,120
12,886
3,234
16,659
13,318
3,341
16,854
13,471
3,383
17,100
13,680
3,420
Farmers Home Administration.............................................
1- to 4-fam ily.........................................................................
Multifamily..............................................................................
C om m ercial................................. ......................................
F a r m .........................................................................................
22,394
13,400
1,116
3,560
4,318
27,697
14,884
2,163
4,328
6,322
31,530
16,683
2,612
5,271
6,964
28,335
14,926
2,159
4,495
6,755
29,245
15,224
2,159
4,763
7,099
30,472
16,226
2,235
5,059
6,952
31,530
16,683
2,612
5,271
6,964
32,530
17,212
2,695
5,438
7,185
150,863'
83,708'
21,351'
22,883'
22,921
171,821'
99,414'
23,251'
24,128'
25,028
196,896
113,838
26,058
26,819
30,181
177,831'
101,952'
23,755'
25,529'
26,595
183,992'
104,838'
24,596'
26,505'
28,053
190,491'
109,780'
25,407'
26,299'
29,005
196,896
113,838
26,058
26,819
30,181
202,828
116,853
27,164
27,449
31,362
38
46
51
52
53
54
55
56
57
58
59 Individual and others3 ................................................................
60
1- to 4-fam ily..............................................................................
61
Multifamily..................................................................................
62
C om m ercial................................................................................
63
F a rm .............................................................................................
1. Includes loans held by nondeposit trust companies but not bank trust de
partments.
2. Outstanding principal balances of mortgages backing securities insured or
guaranteed by the agency indicated.
3. Other holders include mortgage companies, real estate investment trusts, state
and local credit agencies, state and local retirement funds, noninsured pension
funds, credit unions, and U .S . agencies for which amounts are small or separate
data are not readily available.
.
N o te . Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve in conjunction with the
Federal Home Loan Bank Board and the Department of Commerce. Separation
of nonfarm mortgage debt by type of property, if not reported directly, and in
terpolations and extrapolations when required, are estimated mainly by the Federal
Reserve. Multifamily debt refers to loans on structures of five or more units.
A40
1.56
Domestic Financial Statistics □ May 1981
CONSUMER INSTALLMENT CREDIT' Total Outstanding, and Net Change
Millions of dollars
1980
Holder, and type of credit
1977
1978
1981
1979
Oct.
Sept.
Nov.
Dec.
Jan.
Feb.
Mar.
Amounts outstanding (end of period)
1 T otal............................................................
230,564
273,645
312,024
306,926
307,222
308,051
313,435
310,554
309,188
310,766
By major holder
Commercial b a n k s ........................................
Finance com p anies........................................
Credit u nions...................................................
Retailers2 ..........................................................
Savings and lo a n s ..........................................
Gasoline com p an ies......................................
Mutual savings bank s....................................
112,373
44,868
37,605
23,490
7,089
2,963
2,176
136.016
54.298
44.334
25.987
7.097
3.220
2.693
154,177
68.318
46,517
28,119
8.424
3,729
2,740
146,362
74,823
43,562
25,301
9,266
4,872
2,740
145,895
74,985
43,518
25,703
9,611
4.736
2,774
145,147
75,690
43.606
26,469
9,687
4,662
2,790
145,765
76,756
44,041
29,410
9,911
4,717
2,835
143,749
77,131
43,601
28,300
10,023
4,929
2,821
142,030
78,090
43,776
27,329
10,173
4,958
2,832
141,897
79,490
44,212
26,965
10,458
4,898
2,846
By major type o f credit
9 A u to m o b ile.....................................................
10
Commercial b a n k s ....................................
11
Indirect p a p e r ........................................
12
Direct lo a n s............................................
13
Credit unions...............................................
14
Finance com p anies....................................
82,911
49,577
27,379
22,198
18,099
15,235
101.647
60.510
33.850
26.660
21.200
19.937
116.362
67,367
38.338
29,029
22,244
26,751
116,781
62,734
35,768
26,966
20,831
33,216
116,657
62,350
35.572
26,778
20.810
33,497
116,517
61,848
35,284
26,564
20,852
33,817
116,327
61,025
34,857
26,168
21,060
34,242
115,262
59,608
33,947
25,661
20,850
34,804
115,677
59,061
33,667
25,394
20,933
35,683
117,517
59,378
34,016
25,362
21,142
36,997
15 R evolvin g..........................................................
16
Commercial b a n k s ....................................
17
R etailers.......................................................
18
Gasoline com p an ies.................................
39,274
18,374
17,937
2.963
48.309
24.341
20.748
3.220
56,937
29,862
23,346
3,729
54,406
28,403
21,131
4,872
54,598
28.331
21.531
4,736
55,304
28,360
22,282
4,662
59,862
30,001
25,144
4,717
58,985
29,952
24,104
4,929
57,566
29,412
23,196
4,958
56,831
29,051
22,882
4,898
19 Mobile h o m e ...................................................
20
Commercial b a n k s ....................................
21
Finance com p an ies....................................
22
Savings and lo a n s ......................................
23
Credit u nions...............................................
14,945
9,124
3,077
2,342
402
15.235
9.545
3.152
2.067
471
16,838
10,647
3,390
2,307
494
17,113
10,538
3.601
2,511
463
17,276
10.502
3,657
2,654
463
17,293
10,452
3,702
2.675
464
17,327
10,376
3,745
2,737
469
17,244
10,271
3,741
2,768
464
17,189
10,174
3,740
2,809
466
17,273
10,153
3,762
2,888
470
24 O ther..................................................................
25
Commercial b a n k s ....................................
26
Finance com p an ies....................................
27
Credit unions...............................................
28
R etailers.......................................................
29
Savings and lo a n s ......................................
30
Mutual savings bank s...............................
93,434
35,298
26,556
19,104
5,553
4,747
2,176
108.454
41.620
31.209
22.663
5.239
5.030
2.693
121,887
46.301
38,177
23,779
4,773
6,117
2,740
118,626
44,687
38,006
22,268
4,170
6,755
2.740
118,691
44.712
37,831
22.245
4.172
6,957
2,774
118.937
44.487
38,171
22,290
4,187
7,012
2,790
119,919
44,363
38,769
22,512
4,266
7,174
2,835
119,063
43,918
38,586
22,287
4,196
7,255
2,821
118,756
43,383
38,667
22,377
4,133
7,364
2,832
119,145
43,315
38,731
22,600
4,083
7,570
2,846
2
3
4
5
6
7
8
Net change (during period)3
31 T otal............................................................
35,462
43,079
38,381
1,055
702
839
1,619
869
1,996
3,108
By major holder
Commercial b a n k s ........................................
Finance com p an ies........................................
Credit unions...................................................
Retailers2 ..........................................................
Savings and lo a n s ..........................................
Gasoline co m p a n ies......................................
Mutual savings b ank s...................................
18,645
5,949
6,436
2,654
1,309
132
337
23.641
9.430
6.729
2.497
7
257
518
18,161
14,020
2,185
2,132
1,327
509
47
-2 6 5
613
36
456
93
90
32
-336
454
63
134
246
98
43
-1 2 0
594
218
52
-1 4
72
37
-2 7 6
860
378
316
190
83
68
-1 ,3 5 7
1,113
288
409
232
106
78
-5 4 4
1,530
444
103
254
209
0
612
1,539
287
253
418
-6
5
By m ajor type o f credit
39 A u to m o b ile .....................................................
40
Commercial b a n k s ....................................
41
Indirect p a p e r ........................................
42
Direct lo a n s............................................
43
Credit unions...............................................
44
Finance com p anies....................................
15,204
9,956
5,307
4,649
2,861
2,387
18.736
10.933
6.471
4.462
3.101
4.702
14,715
6,857
4,488
2,369
1,044
6,814
84
-3 6 2
-2 8 2
-8 0
10
436
201
-3 4 8
-1 7 0
-1 7 8
18
531
245
-1 3 8
-4 4
-9 4
101
282
302
-4 9 1
-1 8 1
-3 1 0
174
619
-6 3
-1 ,2 5 3
-8 3 9
-4 1 4
206
984
979
-3 4 6
-2 2 9
-1 1 7
211
1,114
1,682
229
268
-3 9
132
1,321
45 R evolvin g.........................................................
46
Commercial b a n k s ....................................
47
R etailers.......................................................
48
Gasoline com p an ies.................................
6,248
4,015
2,101
132
9.035
5.967
2,811
257
8,628
5,521
2,598
509
478
-8 1
469
90
273
-1 9
194
98
265
121
72
72
616
211
322
83
557
59
392
106
441
166
66
209
587
346
247
-6
49 Mobile h o m e ...................................................
50
Commercial b a n k s ....................................
51
Finance com p an ies....................................
52
Savings and lo a n s ......................................
53
Credit unions...............................................
371
387
-1 8 7
101
70
286
419
74
-2 7 6
69
1,603
1,102
238
240
23
43
-2 2
30
35
0
141
-2 1
42
120
0
24
-3 3
44
11
2
66
-3 4
48
47
5
-2 4
-85
15
46
0
-4 7
-1 0 2
18
31
6
88
-3 5
25
97
1
54 O ther..................................................................
55
Commercial b a n k s ...................................
56
Finance com p anies....................................
57
Credit unions...............................................
58
R etailers.......................................................
59
Savings and lo a n s ......................................
60
Mutual savings bank s...............................
13,639
4,287
3,749
3,505
553
1,208
337
15,022
6.322
4.654
3.559
-3 1 4
283
518
13,435
4,681
6,968
1,118
-4 6 6
1,087
47
450
200
147
26
-1 3
58
32
87
52
-1 1 9
45
-6 0
126
43
305
-7 0
268
115
-2 0
-2 5
37
635
38
193
199
-6
143
68
399
-7 8
114
82
17
186
78
623
-2 6 2
398
227
37
223
0
751
72
193
154
6
321
5
32
33
34
35
36
37
38
1.
The Board’s series cover most short- and intermediate-term credit extended
to individuals through regular business channels, usually to finance the purchase
of consumer goods and services or to refinance debts incurred for such purposes,
and scheduled to be repaid (or with the option of repayment) in two or more
installments.
2. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
3. Net change equals extensions minus liquidations (repayments, charge-offs,
and other credit); figures for all months are seasonally adjusted.
Consumer Debt
1.57
A41
CONSUMER INSTALLMENT CREDIT Extensions and Liquidations
Millions of dollars; monthly data are seasonally adjusted.
1980
Holder, and type of credit
1977
1978
1981
1979
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Extensions
1 T otal...............................................................................
257,600
297,668
324,777
27,064
27,365
25,991
27,149
27,059
28,706
29,822
Bv major holder
Commercial b a n k s ..............................................................
Finance com p an ies..............................................................
Credit u nions.........................................................................
Retailers1 ................................................................................
Savings and lo a n s ................................................................
Gasoline co m p a n ies............................................................
Mutual savings bank s..........................................................
117,896
41,989
34,028
42,183
4,978
14,617
1.909
142,433
50,505
38,111
44,571
3,724
16.017
2.307
154.733
61.518
34.926
47.676
5.901
18.005
2.018
11.671
5,355
2,752
4,596
539
1,965
186
11,977
5,323
2,872
4,291
695
2,009
198
11,432
4,852
2,795
4,250
444
2,024
194
11,484
5,185
3,035
4,497
658
2,061
229
10,397
5.904
2.994
4,673
715
2,130
246
11,648
6,193
3,167
4,500
751
2,284
163
12,676
5,911
3,153
4,685
1,038
2,180
179
Bv major tvpe o f credit
9 A u to m o b ile...........................................................................
10
Commercial b a n k s ..........................................................
11
Indirect p a p e r ..............................................................
12
Direct lo a n s...................................................................
13
Credit unions.....................................................................
14
Finance com p an ies..........................................................
75,641
46,363
25,149
21.214
16,616
12,662
87.981
52,969
29,342
23.627
18,539
16,473
93.901
53.554
29.623
23.931
17.397
22.950
7,518
3,713
2.035
1.678
1,455
2,350
7,544
3,791
2,135
1,656
1,457
2,296
7,117
3,552
1,962
1,590
1,402
2,163
7,234
3,271
1,857
1,414
1,538
2,425
8,333
3,560
1,944
1,616
1,613
3,160
8,700
4,117
2,365
1,752
1,586
2,997
15 R evolvin g................................................................................
16
Commercial b a n k s ..........................................................
17
R etailers.............................................................................
18
Gasoline co m p a n ies.......................................................
87.596
38.256
34,723
14,617
105.125
51,333
37,775
16.017
120.174
61.048
41.121
18.005
11,143
5,067
4,111
1,965
11,124
5,264
3,851
2,009
10,953
5,155
3,774
2,024
11,614
5,554
3,999
2,061
11,483
5,185
4,168
2,130
11,867
5,602
3,981
2,284
12,071
5,695
4,196
2,180
19 Mobile h o m e .........................................................................
20
Commercial b a n k s ..........................................................
21
Finance com p an ies..........................................................
22
Savings and lo a n s ............................................................
23
Credit un ion s.....................................................................
5,712
3,466
644
1.406
196
5,412
3,697
886
609
220
6.471
4.542
797
948
184
442
250
84
95
13
513
257
89
159
8
424
243
93
74
479
254
89
119
17
383
171
81
119
12
409
185
88
118
18
641
259
88
269
25
24 O ther.........................................................................................
25
Commercial b a n k s ..........................................................
26
Finance com p an ies..........................................................
27
Credit unions.....................................................................
28
R etailers..............................................................................
29
Savings and lo a n s ............................................................
30
Mutual savings b ank s.....................................................
88.651
29,811
28,683
17,216
7,460
3,572
1,909
99,150
34,434
33,146
19,352
6,796
3,115
2,307
104.231
35.589
37.771
17.345
6.555
4.953
2.018
7,961
2,641
2.921
1,284
485
444
186
8,184
2,665
2,938
1,407
440
536
198
7,497
2,482
2,596
1,379
476
370
194
7,822
2,405
2,671
1,480
498
539
229
7,956
2,443
2,776
1,390
505
596
246
8,097
2,301
2,945
1,536
519
633
163
8,410
2,605
2,826
1,542
489
769
179
2
3
4
5
6
7
8
14
7,237
2,598
1,230
1,368
1,592c
3,047
Liquidations
31 T otal................................................................................
222,138
254,589
286,396
26,009
26,663
25,152
25,530
26,190
26,710
26,714
By major holder
Commercial b a n k s ..............................................................
Finance com p an ies..............................................................
Credit un ion s.........................................................................
Retailers1 ................................................................................
Savings and lo a n s ................................................................
Gasoline co m p a n ies............................................................
Mutual savings b ank s..........................................................
99,251
36,040
27,592
39,529
3,669
14,485
1,572
118,792
41,075
31,382
42,074
3,717
15,760
1,789
136.572
47.498
32.741
45.544
4.574
17.496
1.971
11,936
4,742
2,716
4,140
446
1,875
154
12,313
4,869
2,809
4,157
449
1,911
155
11,552
4,258
2,577
4,198
458
1,952
157
11,760
4,325
2,657
4,181
468
1,978
161
11,754
4,791
2,706
4,264
483
2,024
168
12,192
4,663
2,723
4,397
497
2,075
163
12,064
4,372
2,866
4,432
620
2,186
174
By major type o f credit
39 A u to m o b ile...........................................................................
40
Commercial b a n k s ..........................................................
41
Indirect p a p e r ..............................................................
42
Direct lo a n s...................................................................
43
Credit unions.....................................................................
44
Finance com p an ies..........................................................
60.437
36,407
19,842
16,565
13,755
10,275
69,245
42,036
22,871
19,165
15,438
11,771
79.186
46.697
25.135
21.562
16.353
16.136
7.434
4,075
2,317
1,758
1,445
1,914
7,343
4,139
2,305
1,834
1,439
1,765
6,872
3,690
2,006
1,684
1,301
1,881
6,932
3,762
2,038
1,724
1,364
1,806
7.300
3,851
2,069
1,782
1,386
2,063
7,354
3,906
2,173
1,733
1,402
2,046
7,018
3,888
2,097
1,791
1,454
1,676
45 R evolvin g................................................................................
46
Commercial b a n k s ..........................................................
47
R etailers.............................................................................
48
Gasoline com p an ies.......................................................
81,348
34,241
32,622
14,485
96,090
45,366
34,964
15,760
111.546
55.527
38.523
17.496
10,665
5,148
3,642
1,875
10,851
5,283
3,657
1,911
10,688
5,034
3,702
1,952
10,998
5,343
3,677
1,978
10,926
5,126
3,776
2,024
11,426
5,436
3,915
2,075
11,484
5,349
3,949
2,186
49 Mobile h o m e .........................................................................
50
Commercial b a n k s ..........................................................
51
Finance com p an ies..........................................................
52
Savings and lo a n s ............................................................
53
Credit unions.....................................................................
5,341
3,079
831
1,305
126
5,126
3,278
812
885
151
4.868
3.440
559
708
161
399
272
54
60
13
372
278
47
39
8
400
276
49
63
12
413
288
41
72
12
407
256
66
73
12
456
287
70
87
12
553
294
63
172
24
54 Other........................................................................................
55
Commercial b a n k s ..........................................................
56
Finance com p an ies..........................................................
57
Credit unions.....................................................................
58
R etailers.............................................................................
59
Savings and lo a n s ............................................................
60
Mutual savings bank s.....................................................
75,012
25,524
24,934
13,711
6,907
2,364
1,572
84,128
28,112
28,492
15,793
7,110
2,832
1,789
90.796
30,908
30.803
16.227
7.021
3.866
1.971
7,511
2,441
2,774
1,258
498
386
154
8,097
2,613
3,057
1,362
500
410
155
7,192
2,552
2,328
1,264
496
395
157
7,187
2,367
2,478
1,281
504
396
161
7,557
2,521
2,662
1,308
488
410
168
7,474
2,563
2,547
1,309
482
410
163
7,659
2,533
2,633
1,388
483
448
174
32
33
34
35
36
37
38
1.
Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
A42
1.58
Domestic Financial Statistics □ May 1981
FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1978
Transaction category, sector
1975
1976
1977
1978
1979
1980
1979
1980
HI
H2
HI
H2
HI
H2
Nonfinancial sectors
1 Total funds r a ised .................................................................
2 Excluding equities.................................................................
210.8
200.7
271.9
261.0
338.5
335.3
400.4
398.3
394.9
390.6
363.3
349.8
384.8
387.4
416.0
409.2
380.5
377.7
408.2
402.3
321.1
313.0
405.6
386.5
By sector and instrument
3 U .S . governm ent...................................................................
4
Treasury secu ritie s..........................................................
5
Agency issues and m ortgages......................................
6 A ll other nonfinancial sectors..........................................
7
Corporate e q u itie s ..........................................................
8
D ebt instruments..............................................................
9
Private domestic nonfinancial se cto r s......................
10
Corporate e q u itie s ........................................ .............
11
D ebt instruments..........................................................
12
Debt capital instrum ents......................................
13
State and local obligations...............................
14
Corporate b o n d s.................................................
85.4
85.8
- .4
125.4
10.1
115.3
112.1
9.9
102.2
98.4
16.1
27.2
69.0
69.1
- .1
202.8
10.8
192.0
182.0
10.5
171.5
123.5
15.7
22.8
56.8
57.6
- .9
281.7
3.1
278.6
267.8
2.7
265.1
175.6
23.7
21.0
53.7
55.1
- 1 .4
346.7
2.1
344.6
314.4
2.6
311.8
196.6
28.3
20.1
37.4
38.8
- 1 .4
357.6
4.3
353.2
336.4
3.5
333.0
199.9
18.9
21.2
79.2
79.8
- .6
284.1
13.6
270.6
254.2
11.4
242.8
175.6
22.2
27.6
61.4
62.3
- .9
323.4
- 2 .6
326.0
302.8
- 1 .8
304.6
188.3
27.8
20.6
46.0
47.9
- 1 .9
370.0
6.8
363.2
326.1
7.0
319.1
205.0
28.7
19.6
28.6
30.9
- 2 .3
351.9
2.8
349.1
338.6
2.8
335.8
198.8
16.0
22.4
46.1
46.6
- .5
362.1
5.9
356.2
333.0
4.1
328.9
201.1
21.8
19.9
64.5
65.2
- .6
256.5
8.0
248.5
227.0
6.0
221.0
169.1
18.0
33.4
93.8
94.4
- .6
311.7
19.1
292.7
281.5
16.8
264.7
182.1
26.4
21.9
15
16
17
18
19
20
21
22
23
H o m e .................................................................
Multifamily residential.................................
C om m ercial.....................................................
F a r m ...................................................................
Other debt instrum ents........................................
Consumer c r e d it.................................................
Bank loans n .e .c ..................................................
Open market p a p e r ..........................................
O ther.......................................................................
39.5
*
11.0
4.6
3.8
9.7
- 1 2 .3
- 2 .6
9.0
63.6
1.8
13.4
6.1
48.0
25.6
4.0
4.0
14.4
96.3
7.4
18.4
8.8
89.5
40.6
27.0
2.9
19.0
104.6
10.2
23.3
10.2
115.2
50.6
37.3
5.2
22.2
109.1
8.9
25.7
16.2
133.0
44.2
50.6
10.9
27.3
81.5
8.7
21.6
14.0
67.2
3.1
37.9
5.8
20.4
100.1
9.3
21.2
9.3
116.3
50.1
43.1
5.3
17.8
109.1
11.2
25.4
11.1
114.1
51.0
31.4
5.1
26.5
109.8
8.1
26.0
16.6
137.0
48.3
48.2
12.0
28.4
108.5
9.7
25.4
15.9
127.8
39.0
52.9
9.7
26.2
73.6
6.5
22.1
15.5
51.9
- 6 .4
9.6
29.7
18.9
89.3
11.0
21.1
12.4
82.5
12.5
66.1
- 1 8 .1
22.0
24
25
26
27
28
29
By borrowing secto r...................................................
State and local governm ents...............................
H ouseholds.................................................................
F a r m ............................................................................
Nonfarm noncorporate..........................................
C orporate...................................................................
112.1
13.7
49.7
8.8
2.0
37.9
182.0
15.2
90.5
10.9
4.7
60.7
267.8
20.4
139.9
14.7
12.9
79.9
314.4
23.6
162.6
18.1
15.4
94.8
336.4
15.5
164.9
25.8
15.9
114.3
254.2
20.7
100.8
19.0
12.5
101.1
302.8
21.0
156.1
15.3
16.4
93.9
326.1
26.1
169.1
20.8
14.4
95.7
338.6
13.0
167.6
23.5
15.5
118.9
333.0
18.0
161.2
28.1
15.9
109.7
227.0
16.2
89.8
21.1
9.0
90.9
281.5
25.3
111.9
16.9
16.0
111.3
30
31
32
33
34
35
36
F o reig n ................................................................................
Corporate e q u itie s .....................................................
D ebt instruments..........................................................
B o n d s .........................................................................
Bank loans n .e .c ......................................................
Open market p a p e r ...............................................
U .S . government l o a n s ........................................
13.3
.2
13.2
6.2
3.9
.3
2.8
20.8
.3
20.5
8.6
6.8
1.9
3.3
13.9
.4
13.5
5.1
3.1
2.4
3.0
32.3
- .5
32.8
4.0
18.3
6.6
3.9
21.2
.9
20.3
3.9
2.3
11.2
3.0
29.9
2.2
27.7
.8
11.8
10.1
5.0
20.6
- .8
21.4
5.0
9.3
3.6
3.6
43.9
- .2
44.1
3.0
27.3
9.6
4.2
13.3
*
13.3
3.0
1.0
6.1
3.1
29.1
1.7
27.3
4.7
3.5
16.3
2.8
29.5
2.1
27.5
2.0
4.4
15.7
5.4
30.3
2.3
28.0
- .4
19.3
4.5
4.6
Financial sectors
37 Total funds raised ................................................................
12.7
24.1
54.0
81.4
88.5
70.8
80.7
82.1
86.3
90.7
54.0
87.6
By instrument
U .S . government related ...................................................
Sponsored credit agency securities.............................
Mortgage pool secu rities...............................................
Loans from U .S . governm ent......................................
Private financial sectors.....................................................
Corporate e q u itie s ..........................................................
D ebt instruments..............................................................
Corporate b o n d s..........................................................
M ortgages.......................................................................
Bank loans n .e .c ...........................................................
13.5
2.3
10.3
.9
- .8
.6
- 1 .4
2.9
2.3
- 3 .7
18.6
3.3
15.7
- .4
5.5
1.0
4.4
5.8
2.1
- 3 .7
26.3
7.0
20.5
- 1 .2
27.7
.9
26.9
10.1
3.1
- .3
41.4
23.1
18.3
40.0
1.7
38.3
7.5
.9
2.8
52.4
24.3
28.1
36.1
2.3
33.8
7.8
- 1 .2
- .4
47.5
24.3
23.2
23.3
3.4
19.8
7.2
- .9
1.0
38.5
21.9
16.6
42.2
2.2
40.0
8.5
2.1
2.5
44.3
24.3
20.1
59.0
27.0
32.0
37.8
1.1
36.7
6.4
- .3
3.1
45.8
21.5
24.2
40.5
2.0
38.4
8.7
- .5
- .7
31.7
2.5
29.2
7.0
- 1 .9
- .2
45.8
25.1
20.7
8.1
3.1
5.1
10.3
- 6 .8
1.1
49.2
23.5
25.7
38.4
3.8
34.6
4.0
5.0
1.0
Open market paper and repurchase
agreem ents............................................................
Loans from Federal H om e Loan B an k s.............
1.1
- 4 .0
2.2
- 2 .0
9.6
4.3
14.6
12.5
18.4
9.2
5.4
7.1
13.5
13.2
15.7
11.8
23.0
7.8
13.8
10.5
- 3 .6
4.1
14.4
10.2
By sector
50 Sponsored credit a g en cies.................................................
51 Mortgage p o o ls .....................................................................
52 Private financial sectors......................................................
53
Commercial b a n k s ..........................................................
54
Bank a ffiliates...................................................................
55
Savings and loan associations......................................
Other insurance com panies..........................................
56
57
Finance com p an ies..........................................................
58
R E IT s..................................................................................
59
O pen-end investment co m p a n ies...............................
3.2
10.3
- .8
1.2
.3
- 2 .3
1.0
.5
- 1 .4
- .1
2.9
15.7
5.5
2.3
- .8
.1
.9
6.4
- 2 .4
- 1 .0
5.8
20.5
27.7
1.1
1.3
9.9
.9
17.6
- 2 .2
- .9
23.1
18.3
40.0
1.3
6.7
14.3
1.1
18.6
- 1 .0
- 1 .0
24.3
28.1
36.1
1.6
4.5
11.4
1.0
18.9
-.4
- 1 .0
24.3
23.2
23.3
.6
5.6
6.4
.8
8.8
- .9
2.0
21.9
16.6
42.2
1.5
5.8
16.4
1.0
18.9
- 1 .0
- .5
24.3
20.1
37.8
1.1
7.6
12.2
1.1
18.2
- 1 .0
- 1 .5
21.5
24.2
40.5
1.3
6.2
9.9
1.0
23.5
- .6
- 1 .0
27.0
32.0
31.7
1.8
2.9
12.9
.9
14.3
- .1
- .9
25.1
20.7
8.1
.8
4.5
- 4 .7
.8
6.8
- 1 .4
1.4
23.5
25.7
38.4
.3
6.6
17.6
.7
10.8
- .3
2.7
38
39
40
41
42
43
44
45
46
47
48
49
-
All sectors
60 Total funds raised, by in stru m en t..................................
223.6
295.9
392.5
481.8
483.4
434.1
465.5
498.1
466.7
498.9
375.0
493.2
61 Investment company s h a r e s .............................................
62 Other corporate e q u itie s ...................................................
63 D ebt instruments...................................................................
64
U .S. government secu rities..........................................
65
State and local obligations.............................................
66
Corporate and foreign b o n d s ......................................
67
M ortgages............................................................................
68
Consumer c r e d it..............................................................
69
Bank loans n .e .c ...............................................................
70
Open market paper and R P s ......................................
71
Other l o a n s .......................................................................
- .1
10.8
212.9
98.2
16.1
36.4
57.2
9.7
- 1 2 .2
- 1 .2
8.7
- 1 .0
12.9
284.1
88.1
15.7
37.2
87.0
25.6
7.0
8.1
15.3
- .9
4.9
388.5
84.3
23.7
36.1
133.9
40.6
29.8
15.0
25.2
- 1 .0
4.7
478.1
95.2
28.3
31.6
149.1
50.6
58.4
26.4
38.6
- 1 .0
7.6
476.8
89.9
18.9
32.9
158.6
44.2
52.5
40.5
39.5
2.0
15.0
417.1
126.8
22.2
35.6
124.8
3.1
50.7
21.4
32.6
- .5
.1
465.9
100.0
27.8
34.2
141.9
50.1
54.9
22.4
34.6
- 1 .5
9.4
490.2
90.4
28.7
29.1
156.3
51.0
61.8
30.4
42.5
- 1 .0
5.8
461.9
74.5
16.0
34.1
159.8
48.3
48.6
41.1
39.4
- .9
9.3
490.5
105.2
21.8
31.5
157.4
39.0
56.2
39.8
39.5
1.4
9.8
363.9
110.5
18.0
45.7
110.8
- 6 .4
15.0
41.9
28.3
2.7
20.2
470.4
143.2
26.4
25.5
138.8
12.5
86.4
.9
36.8
Flow o f Funds
1.59
A43
DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates
1978
Transaction category, or sector
1975
1976
1977
1978
1979
1980
1979
1980
HI
H2
HI
H2
HI
H2
1 Total funds advanced in credit markets to nonfinancial
sectors ..............................................................................
200.7
261.0
335.3
398.3
390.6
349.8
387.4
409.2
377.7
402.3
313.0
386.5
5
6
By public agencies and foreign
Total net a d v a n ces.......................................................................
U .S . government secu rities...................................................
Residential m o rtg a g es............................................................
FHLB advances to savings and lo a n s ...............................
Other loans and securities......................................................
44.6
22.5
16.2
- 4 .0
9.8
54.3
26.8
12.8
- 2 .0
16.6
85.1
40.2
20.4
4.3
20.2
109.7
43.9
26.5
12.5
26.9
80.1
2.0
36.1
9.2
32.8
95.8
22.3
32.0
7.1
34.5
102.8
43.7
22.2
13.2
23.7
116.6
44.0
30.7
11.8
30.1
47.6
- 2 2 .1
32.6
7.8
29.2
112.5
26.2
39.6
10.5
36.3
101.7
24.9
33.5
4.1
39.3
89.9
19.7
30.4
10.2
29.6
7
8
9
10
11
Total advanced, by sector
U .S . governm ent............................................................................
Sponsored credit a g e n c ie s..........................................................
M onetary a u th o r ities...................................................................
F o r e ig n ..............................................................................................
Agency borrowing not included in line 1 .............................
15.1
14.8
8.5
6.1
13.5
8.9
20.3
9.8
15.2
18.6
11.8
26.8
7.1
39.4
26.3
20.4
44.6
7.0
37.7
41.4
22.5
57.5
7.7
- 7 .7
52.4
26.0
48.6
4.5
16.7
47.5
19.4
39.4
13.4
30.6
38.5
21.4
49.8
.5
44.9
44.3
23.8
49.9
.9
- 2 7 .0
45.8
21.3
65.2
14.5
11.7
59.0
29.6
43.6
14.6
13.9
45.8
22.5
53.6
- 5 .6
19.5
49.2
Private dom estic funds advanced
12 Total net ad v a n ces........................................................................
13
U .S. government secu rities...................................................
14
State and local obligations......................................................
15
Corporate and foreign b o n d s ...............................................
16
Residential m o rtg a g es............................................................
17
Other mortgages and lo a n s...................................................
18
Less: Federal H om e Loan Bank advances......................
169.7
75.7
16.1
32.8
23.2
17.9
- 4 .0
225.4
61.3
15.7
30.5
52.6
63.3
- 2 .0
276.5
44.1
23.7
22.5
83.3
107.3
4.3
330.0
51.3
28.3
22.5
88.2
152.2
12.5
362.9
87.9
18.9
25.6
81.8
157.9
9.2
301.5
104.6
22.2
25.5
58.1
98.2
7.1
323.2
56.3
27.8
24.1
87.1
141.1
13.2
336.9
46.4
28.7
20.9
89.5
163.3
11.8
375.9
96.6
16.0
26.9
85.1
159.1
7.8
348.8
79.1
21.8
24.3
78.5
155.6
10.5
257.1
85.6
18.0
32.4
46.5
78.6
4.1
345.8
123.5
26.4
18.7
69.8
117.7
10.2
Private financial intermediation
19 Credit market funds advanced by private financial
institu tions..............................................................................
20
Commercial banking.................................................................
21
Savings institu tions...................................................................
22
Insurance and pension funds.................................................
23
Other finance..............................................................................
122.5
29.4
53.5
40.6
- 1 .0
190.1
59.6
70.8
49.9
9.8
257.0
87.6
82.0
67.9
19.6
296.9
128.7
75.9
73.5
18.7
292.5
121.1
56.3
70.4
44.7
265.6
103.5
57.6
76.4
28.1
301.7
132.5
75.8
76.9
16.6
292.0
125.0
75.9
70.2
20.9
307.5
124.6
57.7
75.4
49.8
277.4
117.6
54.9
65.5
39.6
229.6
57.2
31.4
84.6
56.3
301.8
149.9
83.8
68.2
- .1
24 Sources o f fu n d s ............................................................................
25
Private domestic d e p o s its ......................................................
26
Credit market borrowing........................................................
27
Other sources..............................................................................
28
Foreign funds..........................................................................
29
Treasury b alan ces.................................................................
30
Insurance and pension r e se r v e s......................................
31
Other, n et................................................................................
122.5
92.0
-1 .4
32.0
- 8 .7
- 1 .7
29.7
12.7
190.1
124.6
4.4
61.0
- 4 .6
- .1
34.5
31.2
257.0
141.2
26.9
89.0
1.2
4.3
49.4
34.1
296.9
142.5
38.3
116.0
6.3
6.8
62.7
40.3
292.5
136.7
33.8
122.0
26.3
.4
49.0
46.3
265.6
163.9
19.8
81.9
- 2 0 .0
- 2 .0
58.5
45.4
301.7
138.3
40.0
123.5
5.7
1.9
66.2
49.6
292.0
146.7
36.7
108.6
6.9
11.6
59.2
31.0
307.5
121.7
38.4
147.3
49.4
5.1
53.9
38.9
277.4
151.6
29.2
96.6
3.2
- 4 .3
44.0
53.7
229.6
147.7
5.1
76.8
- 1 8 .1
-2 .5
59.6
37.9
301.8
180.1
34.6
87.1
- 2 1 .8
- 1 .5
57.4
53.1
Private dom estic nonfinancial investors
32 Direct lending in credit markets...............................................
33
U .S . government secu rities...................................................
34
State and local obligations......................................................
35
Corporate and foreign b o n d s ...............................................
36
Commercial paper.....................................................................
37
O ther..............................................................................................
45.8
24.1
8.4
8.4
- 1 .3
6.2
39.7
16.1
3.8
5.8
1.9
12.0
46.3
23.0
2.6
- 3 .3
9.5
14.5
71.5
33.2
4.5
- 1 .4
16.3
18.8
104.2
57.8
- 2 .5
11.1
10.7
27.1
55.7
30.7
- 1 .8
5.4
- 2 .4
23.9
61.4
32.1
7.0
- 3 .7
8.2
17.8
81.6
34.4
2.0
1.0
24.4
19.8
106.8
64.1
- 2 .3
7.8
12.5
24.7
100.5
51.5
- 2 .7
14.2
9.0
28.5
32.6
13.2
- 2 .9
8.3
- 6 .2
20.2
78.7
48.2
- .8
2.4
1.3
27.6
38 Deposits and curren cy.................................................................
39
Security R P s................................................................................
40
M oney market fund sh a r e s...................................................
41
Time and savings a c c o u n ts...................................................
42
Large at commercial ban k s...............................................
43
Other at commercial bank s...............................................
44
A t savings in stitu tio n s........................................................
45
M on ey...........................................................................................
46
Dem and deposits...................................................................
47
Currency...................................................................................
98.1
.2
1.3
84.0
- 1 5 .8
40.3
59.4
12.6
6.4
6.2
131.9
2.3
113.5
- 1 3 .2
57.6
69.1
16.1
8.8
7.3
149.5
2.2
.2
121.0
23.0
29.0
69.0
26.1
17.8
8.3
151.8
7.5
6.9
115.2
45.9
8.2
61.1
22.2
12.9
9.3
144.7
6.6
34.4
84.7
.4
39.3
45.1
18.9
11.0
7.9
173.5
4.7
29.2
131.8
12.7
62.9
56.2
7.8
- 1 .8
9.6
148.7
9.8
6.1
110.7
33.9
18.4
58.5
22.1
11.6
10.5
154.8
5.1
7.7
119.8
57.9
- 1 .9
63.8
22.3
14.2
8.1
131.1
18.5
30.2
71.4
- 2 5 .3
41.3
55.4
10.9
1.6
9.3
158.1
- 5 .3
38.6
97.9
26.0
37.3
34.7
26.8
20.3
6.5
156.7
5.3
61.9
91.9
- 1 2 .0
60.6
43.4
- 2 .4
- 1 1 .4
9.0
190.1
4.0
- 3 .4
171.7
37.4
65.2
69.1
17.9
7.8
10.1
currency..........................................................................
143.9
171.6
195.8
223.3
248.9
229.1
210.1
236.4
237.9
258.7
189.3
268.8
Public support rate (in p ercen t)..........................................
Private financial intermediation (in p ercen t)..................
Total foreign fu n d s...................................................................
22.2
72.2
- 2 .6
20.8
84.3
10.6
25.4
93.0
40.5
27.5
90.0
44.0
20.5
80.6
18.6
27.4
88.1
- 3 .3
26.5
93.4
36.3
28.5
86.7
51.8
12.6
81.8
22.4
28.0
79.5
14.9
32.5
89.3
- 4 .2
23.3
87.3
- 2 .3
2
3
4
48 Total of credit market instruments, deposits and
49
50
51
Memo: Corporate equities not included above
52 Total net issu es......................................................................
53 Mutual fund shares...................................................................
54 Other e q u itie s ............................................................................
55 Acquisitions by financial institutions......................................
56 Other net purchases.....................................................................
10.7
11.9
4.0
3.7
6.6
17.0
- .4
7.9
4.8
8.4
11.1
22.8
- .1
10.8
- 1 .0
12.9
- .9
4.9
- 1 .0
4.7
- 1 .0
7.6
- 2 .0
15.0
- .5
.1
-1 .5
9.4
- 1 .0
5.8
- .9
9.3
1.4
9.8
2.7
20.2
9.6
1.1
12.3
- .4
7.4
- 3 .4
7.6
- 3 .8
15.7
- 9 .1
18.7
- 1 .7
.4
- .8
14.7
- 6 .8
12.5
- 7 .7
18.9
- 1 0 .5
16.7
- 5 .6
20.7
2.1
N otes by line num ber .
1. Line 2 of p. A42.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities. Included below in lines 3,
13, and 33.
12. Line 1 less line 2 plus line 11. A lso line 19 less line 26 plus line 32. Also sum
of lines 27, 32, 39, 40, 41, and 46.
17. Includes farm and commercial mortgages.
25. Sum o f lines 39, 40, 41, and 46.
26. Excludes equity issues and investment company shares. Includes line 18.
28. Foreign deposits at commercial banks, bank oorrowings from foreign branches,
and liabilities of foreign banking agencies to foreign affiliates.
29. Dem and deposits at commercial banks.
30. Excludes net investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 12 less line 19 plus line 26.
33-37. Lines 13-17 less amounts acquired by private finance. Line 37 includes
mortgages.
47. Mainly an offset to line 9.
48. Lines 32 plus 38, or line 12 less line 27 plus 45.
49. Line 2/line 1.
50. Line 19/line 12.
51. Sum of lines 10 and 28.
52. 54. Includes issues by financial institutions.
N o te . Full statements for sectors and transaction types quarterly, and annually
for flows and for amounts outstanding, may be obtained from Flow o f Funds
Section, Division of Research and Statistics, Board of Governors o f the Federal
Reserve System, Washington, D .C . 20551.
A44
2.10
Domestic Nonfinancial Statistics □ May 1981
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures
1967 = 100; m onthly and quarterly d ata are seasonally adjusted. Exceptions noted.
1980
Measure
1978
1979
1981
1980
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
F eb .'
M ar.'
Apr.
1 Industrial production1 ..........................................
146.1
152.5
147.1
141.8
144.1
146.9
149.4
151.0
151.7
151.5
152.2
152.8
Market groupings
Products, to ta l........................................................
Final, to ta l..........................................................
Consumer g oods............................................
Equipm ent......................................................
Intermediate........................................................
Materials..................................................................
144.8
135.9
149.1
132.8
154.1
148.3
150.0
147.2
150.8
142.2
160.5
156.4
146.8
145.4
145.5
145.1
151.9
147.7
143.8
142.8
142.7
142.9
147.6
138.6
145.3
143.9
144.3
143.2
150.6
142.4
147.2
145.8
146.6
144.8
152.4
146.4
148.7
147.5
148.0
146.7
153.5
150.5
149.9
148.3
147.7
149.1
156.1
152.6
150.3'
148.3'
147.2
149.8'
157.7'
153.8'
150.0
147.9
147.0
149.2
157.5
154.0
151.2
149.4
148.5
150.7
157.7
153.9
152.4
150.9
149.7
152.5
158.1
153.4
Industry groupings
8 M anufacturing........................................................
146.8
153.6
146.6
140.6
143.4
146.4
149.1
150.6
151.1
151.1
151.9
152.8
Capacity utilization (percent)1-2
9 M anufacturing....................................................
10 Industrial materials industries..........................
84.4
85.6
85.7
87.4
79.0
79.8
75.5
74.6
76.7
76.4
78.2
78.4
79.4
80.4
79.9
81.3
79.8
81.6
80.0
81.4
80.3
81.0
2
3
4
5
6
7
80.0
81.7'
11 Construction contracts (1972 = 100)3................
174.1
185.6
161.8
192.0
163.0
167.0
210.0
193.0
185.0
177.0
183.0
n.a
12 Nonagricultural employment, total4 ..................
13 Goods-producing, t o t a l ....................................
14
Manufacturing, total......................................
15
Manufacturing, production-w orker............
16 Service-producing..............................................
17 Personal income, to ta l..........................................
18 Wages and salary disbursem ents....................
19
M anufacturing................................................
20 Disposable personal income5 ..............................
131.8
109.8
105.4
103.0
143.8
273.3
258.8
223.1
268.7
136.6
113.7
108.3
105.4
149.2
308.5
289.5
248.6
301.5
137.8
110.9
104.7
99.8
152.5
342.9
314.7
261.5
334.5
137.0
108.6
102.5
97.0
152.6
345.9
314.4
258.5
338.0
137.4
109.3
103.1
97.7
152.7
350.1
317.8
262.9
137.9
110.0
103.7
100.7
153.1
354.7
323.6
267.6
138.2
110.7
104.3
99.1
153.3
358.3
328.0
273.1
348.4
138.5
111.1
104.4
99.2
153.5
361.4
330.5
275.8
139.0
111.7
104.6
99.4
154.0
365.2'
335.6'
280.1'
139.3
111.5
104.8
99.5
154.5
367.8
337.7
281.1
357.3
139.4
111.6
104.9
99.7
154.6
370.6
340.1
282.3
139.0
110.8
105.2
100.0
154.5
n.a.
n.a.
n.a.
21 Retail sales6 ............................................................
253.8
281.6
300.0
300.0
306.0
308.0
313.8
315.8
326.6
331.7
333.1
329.8
Prices7
22 Consumer............................................................
23
Producer finished goods....................................
195.4
194.6
217.4
216.1
246.8
246.9
249.4
251.4
251.7
251.4
253.9
255.4
256.2
255.6
258.4
256.9
260.5
259.8
263.2
262.4
265.1
265.3
n.a.
267.7
1. The industrial production and capacity utilization series have been revised
back to January 1979.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, and Department of Com
merce.
3. Index of dollar value of total construction contracts, including residential,
nonresidential, and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
Series for disposable income is quarterly.
2.11
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.
N o te . Basic data (not index numbers) for series mentioned in notes 4, 5, and
6, and indexes for series mentioned in notes 3 and 7 may also be found in the
Survey of Current Business.
Figures for industrial production for the last two months are preliminary and
estimated, respectively.
OUTPUT, CAPACITY, AND CAPACITY UTILIZATION
Seasonally adjusted
1980
1981
1980
1981
1980
1981
Series
02
03
Q4
Q l'
Output (1967 = 100)
Q2
Q3
Q4
Ql
Capacity (percent of 1967 output)
1 Manufacturing........................................................
2 Primary processing................................................
3 Advanced processing............................................
143.9
145.0
143.3
141.0
139.6
141.8
148.7
153.1
146.4
151.4
157.0
148.4
184.8
190.0
182.0
186.3
191.5
183.5
187.8
193.0
185.0
189.3
194.3
186.6
4 Materials..................................................................
145.1
139.2
149.8
153.9
184.3
185.8
187.2
5 Durable goods........................................................
6 Metal m aterials..................................................
7 Nondurable goods..................................................
8 Textile, paper, and chemical............................
9
Textile..............................................................
10
P aper................................................................
11
Chemical..........................................................
12 Energy materials....................................................
140.6
100.6
166.0
171.9
116.4
142.1
208.3
130.0
131.5
86.6
161.9
165.6
113.4
142.9
197.9
129.6
145.1
109.9
175.5
182.7
113.2
148.9
226.9
129.5
150.9
117.2
178.9
186.6
111.2
151.1
234.1
130.3
188.6
140.8
202.0
211.0
139.2
156.0
264.6
151.8
190.0
140.9
204.3
213.7
139.6
157.4
268.7
152.6
191.5
141.0
206.5
216.2
140.0
158.8
272.9
153.1
Q2
Q3
Q4
Q l'
Utilization rate (percent)
77.9
76.3
78.7
75.7
72.9
77.3
79.2
79.4
79.1
79.9
80.8
79.5
188.7
78.7
74.9
80.0
81.6
192.8
141.1
208.5
218.5
140.3
160.0
276.4
154.1
74.6
71.4
82.2
81.5
83.7
91.0
78.7
85.6
69.2
61.5
79.2
77.5
81.2
90.7
73.6
85.0
75.8
78.0
85.0
84.5
80.9
93.8
83.2
84.6
78.3
83.1
85.8
85.4
79.2
94.5
84.7
84.6
Labor Market
2.11
A45
Continued
Previous cycle1
Latest cycle2
1980
Low
April
1980
1981
Series
High
Low
High
Oct.
Nov.
Dec.
Jan . r
Feb. r
M ar. r
Apr.
Capacity utilization rate (percent)
13 M anufacturing........................................................
88.0
69.0
87.2
74.9
80.3
78.2
79.4
79.9
80.0
79.8
80.0
80.3
14
15
Primary processing............................................
Advanced processing........................................
93.8
85.5
68.2
69.4
90.1
86.2
70.9
77.1
80.5
80.1
77.6
78.5
79.6
79.2
80.8
79.6
81.2
79.5
81.1
79.2
80.2
79.9
80.5
80.2
16 M aterials..................................................................
17 Durable goods....................................................
18
Metal m aterials..............................................
92.6
91.5
98.3
69.4
63.6
68.6
88.8
88.4
96.0
73.7
68.0
58.4
82.1
78.8
77.2
78.4
73.5
71.5
80.4
76.5
81.4
81.3
77.3
81.0
81.7
78.0
82.0
81.6
78.0
83.0
81.4 *
78.8
84.2
81.0
79.2
83.8
19
20
21
22
23
Nondurable goods..............................................
Textile, paper, and chemical........................
Textile..........................................................
P aper............................................................
Chemical......................................................
94.5
95.1
92.6
99.4
95.5
67.2
65.3
57.9
72.4
64.2
90.9
91.4
90.1
97.6
91.2
76.8
74.5
79.5
88.1
69.6
86.1
86.0
84.6
90.7
85.2
84.4
83.8
82.1
93.0
82.1
84.3
83.7
80.7
94.1
82.0
86.3
85.9
79.8
94.2
85.4
86.7
86.2
79.8
93.7
85.9
86.1
85.8
79.2
94.8
85.2
84.6
84.2
78.6
94.8
83.1
84.6
84.0
79.2
95.4
82.5
24
Energy materials................................................
94.6
84.8
88.3
83.1
85.8
83.1
85.5
85.0
84.6
85.1
84.0
80.1
1. Monthly high 1973; monthly low 1975.
2. Preliminary; monthly highs December 1978 through January 1980; monthly
lows July 1980 through October 1980.
2.12
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; m onthly data are seasonally adjusted. Exceptions noted.
1980
Category
1978
1979
1981
1980
Oct.
Nov.
Dec.
Jan.
F e b .r
Mar . r
Apr.
H ousehold Survey D ata
1 Noninstitutional population1 ........................
161,058
163,620
166,246
167,005
167,201
167,396
167,585
167,747
167,902
168,071
2 Labor force (including Armed Forces)1 . . .
3 Civilian labor force........................................
Employment
4
Nonagricultural industries2 ....................
5
Agriculture ..............................................
Unemployment
6
Num ber ....................................................
7
Rate (percent of civilian labor force) .
8 Not in labor fo rc e ..........................................
102,537
100,420
104,996
102,908
106,821
104,719
107.288
105.167
107.404
105,285
107,191
105,067
107,668
105,543
107.802
105.681
108,305
106,177
108,851
106,722
91,031
3,342
93,648
3,297
93.960
3.310
93.887
3.319
93.999
3,340
93,888
3,394
94,294
3,403
94,646
3,281
95,136
3,276
95,513
3,463
6,047
6.0
58,521
5,963
5.8
58,623
7,448
7.1
59,425
7.961
7.6
59.717
7,946
7.5
59,797
7,785
7.4
60,205
7.847
7.4
59,917
7,754
7.3
59,946
7,764
7.3
59,598
7,746
7.3
59,219
E stablishment S urvey D ata
9 Nonagricultural payroll employment3 ........
10
11
12
13
14
15
16
17
M anufacturing.....................................................
M ining.....................................................................
Contract construction ....................................
Transportation and public utilities ..............
Trade ................................................................
Finance ...................................................................
Service ..............................................................
Governm ent..........................................................
86,697
89,886
90,652
90,710
90,961
91,125
91,481
91,652
91,714
91,494
20,505
851
4,229
4,923
19,542
4,724
16,252
15,672
21,062
960
20.365
1,025
20.157
1,037
20,282
1.054
20,312
1,072
20,345
1,086
20,374
1,095
20,400
1,102
20,455
950
4,483
4,468
4.442
4,475
4,508
4.610
4.518
4,508
5,141
20,269
4,974
17,078
15,920
5,155
20,571
5,162
17,736
16,171
5.147
20.641
5,214
17.913
16.159
5.132
20.660
5,225
17,969
16,164
4,426
5,137
20.638
5,245
18,068
16,145
5,142
20,762
5,268
18,133
16,135
5,156
20,885
5,277
18,181
13,372
5,158
20,932
5,285
18,216
13,324
5,145
20,808
5,300
18,278
13,345
1. Persons 16 years of age and over. Monthly figures, which are based on sample
data, relate to the calendar week that contains the 12th day; annual data are
averages of monthly figures. By definition, seasonality does not exist in population
figures. Based on data from Employment and Earnings (U.S. Department of La
bor).
2. Includes self-employed, unpaid family, and domestic service workers.
3.
Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family work
ers, and members of the Armed Forces. Data are adjusted to the March 1979
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A46
2.13
Domestic Nonfinancial Statistics □ May 1981
INDUSTRIAL PRODUCTION
Indexes and Gross Value
Monthly data are seasonally adjusted.
Grouping
1967
pro
por
tion
1980
Aver
age
1980
Apr.
May
June
July
Aug.
1981
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Index (1967 = 100)
M ajor M arket
1 Total in d e x ......................................
100.00
147.1
148.3
144.0
141.5
140.4
141.8
144.1
146.9
149.4
151.0
151.7
151.5
152.2
152.8
2 Products............................................
3 Final products..............................
4
Consumer g o o d s ....................
5
E q u ip m en t..............................
6 Intermediate products................
7 M aterials..........................................
60.71
47.82
27.68
20.14
12.89
39.29
146.8
145.4
145.5
145.1
151.9
147.7
146.6
145.4
145.3
145.6
150.8
151.0
143.7
143.1
142.4
144.0
146.2
144.3
142.5
142.3
142.1
142.6
143.5
140.0
142.8
142.4
142.0
142.9
144.5
136.5
143.8
142.8
142.7
142.9
147.6
138.6
145.3
143.9
144.3
143.2
150.6
142.4
147.2
145.8
146.6
144.8
152.4
146.4
148.7
147.5
148.0
146.7
153.5
150.5
149.9
148.3
147.7
149.1
156.1
152.6
150.3
148.3
147.2
149.8
157.7
153.8
150.0
147.9
147.0
149.2
157.5
154.0
151.2
149.4
148.5
150.7
157.7
153.9
152.4
150.9
149.7
152.5
158.1
153.4
Consumer goods
8 Durable consumer go o d s..............
9
Automotive p ro d u c ts................
10
Autos and utility vehicles___
11
A u to s....................................
12
Auto parts and allied goods..
13 Home goods................................
14
Appliances, A/C, and TV . . .
15
Appliances and T V ............
16
Carpeting and fu rn itu re........
17
Miscellaneous home goods...
7.89
2.83
2.03
1.90
80
5.06
1.40
1.33
1.07
2.59
136.5
132.7
109.9
103.4
190.4
138.7
117.1
119.5
155.0
143.6
136.3
126.3
102.3
97.1
187.2
142.0
122.1
117.5
165.8
146.8
128.8
118.5
92.6
88.4
184.0
134.6
102.8
106.0
154.2
143.8
128.2
121.6
97.1
95.7
183.7
132.0
105.6
108.5
146.7
140.2
128.3
129.2
106.4
105.2
186.9
127.7
102.3
103.4
136.1
138.1
128.6
121.5
94.1
91.3
191.1
132.6
114.2
114.2
141.1
139.1
132.7
130.6
105.5
98.0
194.2
134.0
116.3
117.6
146.1
138.6
139.6
141.8
120.2
110.7
196.8
138.3
123.5
125.6
150.2
141.5
142.9
145.3
124.3
114.3
198.6
141.5
128.4
131.0
154.9
143.0
141.3
139.1
115.9
105.3
198.0
142.6
126.8
129.2
156.3
145.4
138.8
127.1
99.8
90.0
196.6
145.4
131.2
132.7
156.8
148.4
139.0
129.2
103.7
96.0
193.9
144.4
124.2
126.7
159.9
149.0
142.8
138.0
116.6
108.3
192.2
145.5
127.2
129.2
161.0
149.0
143.8
141.3
120.2
113.2
194.7
145.3
124.3
19.79
4.29
15.50
8.33
7.17
149.1
126.8
155.3
147.0
165.0
148.8
128.7
154.5
146.2
164.0
147.7
127.9
153.2
146.1
161.5
147.6
126.7
153.4
146.2
161.7
147.4
122.5
154.3
146.4
163.6
148.3
123.6
155.1
146.0
165.7
148.9
122.1
156.3
147.0
167.1
149.4
125.1
156.1
147.7
165.9
150.1
127.3
156.4
148.0
166.2
150.2
123.7
157.5
148.9
167.6
150.5
122.3
158.3
148.7
169.5
150.2
120.8
158.4
149.0
169.2
150.8
152.0
159.0
149.6
170.0
171.3
2.63
1.92
2.62
1.45
208.7
122.9
151.9
171.2
206.9
120.4
152.8
172.5
203.0
120.2
150.1
169.8
202.6
120.6
150.9
170.1
204.3
121.5
153.5
176.5
209.3
122.0
153.9
178.6
213.0
122.3
154.0
178.3
210.2
124.8
151.5
175.0
210.0
127.3
150.8
171.8
212.5
127.0
152.3
171.2
214.7
127.6
154.8
174.4
217.6
129.5
149.7
167.0
220.0
130.0
149.2
12.63
6.77
1.44
3.85
1.47
173.3
157.0
241.3
128.5
149.0
174.2
159.3
239.5
131.9
152.3
171.9
157.8
242.2
129.5
149.1
169.8
155.2
241.0
126.1
147.1
170.1
154.8
244.4
126.0
142.0
170.3
154.5
243.6
124.4
145.9
170.5
154.2
243.4
123.9
146.1
172.3
154.4
244.3
123.9
146.1
174.5
157.1
250.1
126.4
146.0
177.8
160.7
255.7
130.6
146.1
178.9
163.8
265.9
131.1
149.1
178.2
165.1
272.2
130.8
149.9
180.4
167.2
279.9
131.5
149.9
182.6
169.1
285.1
132.6
150.7
Commercial transit, farm ..........
Commercial..............................
T ransit......................................
Farm........................................
5.86
3.26
1.93
67
192.1
237.5
139.4
123.2
191.5
235.6
143.0
116.4
188.2
232.0
136.3
124.6
186.7
228.8
138.0
121.6
187.8
229.0
140.9
122.5
188.4
233.6
138.4
112.7
189.4
237.2
133.8
116.8
192.8
242.0
135.0
120.2
194.7
244.0
136.6
121.9
197.6
248.3
137.9
123.1
196.3
249.6
131.7
122.9
193.4
250.9
123.1
116.4
195.6
252.2
127.6
116.3
198.3
254.4
130.9
36 Defense and space..........................
7.51
97.8
97.6
97.2
96.8
97.2
96.9
97.4
98.5
99.8
100.7
101.0
100.4
100.8
102.0
Intermediate products
37 Construction supplies..................
38 Business supplies..........................
39
Commercial energy products..
6.42
6.47
1.14
140.7
162.9
173.6
139.4
162.0
174.8
133.0
159.4
172.0
128.5
158.4
168.7
128.6
160.4
172.1
133.1
161.9
173.7
137.4
163.6
175.2
140.5
164.3
174.6
142.8
164.2
174.0
144.6
167.5
179.4
147.4
168.0
178.3
147.3
167.7
175.5
147.6
167.7
176.6
147.5
Materials
40 Durable goods materials..............
41
Durable consumer p arts..........
42 Equipment p a r t s ......................
43
Durable materials n.e.c............
44
Basic metal m aterials..........
20.35
4.58
5.44
10.34
5.57
143.1
109.0
187.3
135.0
104.6
148.2
110.6
195.8
139.8
109.3
139.8
100.1
190.8
130.5
100.0
133.8
96.0
182.5
125.0
95.9
129.0
93.9
177.6
118.9
84.7
131.3
98.1
176.3
122.4
89.4
134.2
104.2
176.0
125.4
91.7
140.4
110.8
178.5
133.4
102.0
146.6
115.5
184.0
140.6
114.4
148.4
116.3
185.8
142.9
115.0
150.2
116.2
189.2
144.6
116.3
150.4
114.8
188.9
145.8
117.8
152.2
119.0
191.5
146.1
118.3
153.5
121.9
193.4
146.5
45 Nondurable goods m a terials----46 Textile, paper, and chemical
m aterials................................
47
Textile m a terials..................
48
Paper m a terials....................
49
Chemical m aterials..............
50
Containers, n o ndurable..........
51
Nondurable materials n.e.c. ..
10.47
170.7
173.2
165.2
159.6
156.2
159.8
169.7
173.7
174.1
178.8
180.2
179.5
176.9
177.3
7.62
1.85
1.62
4.15
1.70
1.14
177.0
116.0
145.1
216.7
165.1
137.3
180.7
117.7
141.2
224.3
166.8
133.0
171.5
117.6
141.7
207.3
155.8
136.4
163.4
114.0
143.4
193.3
157.7
136.8
158.5
114.4
138.4
186.1
159.0
136.6
163.2
111.0
142.0
194.9
158.8
137.9
175.1
114.7
148.2
212.6
167.2
137.2
180.5
114.9
147.3
222.9
168.6
135.7
181.0
113.0
149.5
223.8
166.6
139.1
186.5
111.8
150.0
234.1
169.7
141.1
187.7
111.9
149.6
236.4
172.1
142.0
187.4
111.1
151.7
235.5
171.0
139.0
184.6
110.5
152.1
230.5
167.8
138.8
184.7
52 Energy m aterials..........................
53
Primary energy..........................
54 Converted fuel m aterials........
8.48
4.65
3.82
130.0
115.1
148.2
130.1
116.4
146.9
129.6
116.2
145.8
130.4
117.3
146.4
130.4
115.6
148.4
130.0
114.0
149.4
128.4
114.3
145.4
127.2
113.7
143.6
130.9
114.5
150.9
130.5
115.0
149.4
130.2
114.4
149.4
131.1
117.6
147.6
129.6
116.9
145.1
123.8
9.35
12.23
3.76
8.48
133.2
138.8
158.5
130.0
135.9
139.1
159.5
130.1
131.5
137.9
156.7
129.6
129.5
138.4
156.3
130.4
125.3
139.2
159.1
130.4
128.5
139.2
159.9
130.0
128.5
138.2
160.5
128.4
132.2
136.8
158.5
127.2
135.0
139.2
157.9
130.9
133.9
139.7
160.5
130.5
134.8
139.9
161.9
130.2
133.6
139.2
157.5
131.1
134.3
138.2
157.5
129.6
134.8
134.4
18 Nondurable consumer goods........
19 Clothing........................................
20 Consumer staples........................
21
Consumer foods and tobacco
22
Nonfood staples......................
23
Consumer chemical
products........................
24
Consumer paper products .
25
Consumer energy products
26
Residential utilities........
Equipment
27 Business............................................
28
Industrial......................................
29
Building and m inin g..............
30
M anufacturing........................
31
Power........................................
32
33
34
35
149.5
160.2
Supplementary groups
55 Home goods and clo th in g ..........
56 Energy, total..................................
57
Products......................................
58 M aterials....................................
123.8
Output
2.13
A47
Continued
Grouping
SIC
code
1967
pro
por
tion
1980
1980
Avg.
Apr.
May
June
July
Aug.
1981
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Index (1967 == 100)
M ajor Industry
12.05
6.36
5.69
3.88
87.95
35.97
51.98
150.4
132.9
169.9
189.7
146.6
161.1
136.6
150.1
133.1
169.1
187.9
147.9
161.6
138.4
149.6
133.4
167.7
186.0
143.4
158.0
133.3
150.1
132.9
169.3
188.7
140.3
155.3
129.9
150.1
130.6
171.8
192.4
139.1
154.7
128.3
150.5
129.6
173.8
195.4
140.6
156.9
129.4
150.5
130.5
172.7
193.9
143.4
160.3
131.7
150.2
132.1
170.4
190.3
146.4
161.8
135.8
152.8
136.0
171.5
191.5
149.1
163.3
139.3
154.0
139.3
170.3
190.3
150.6
165.0
140.6
155.2
141.1
171.0
191.1
151.1
165.2
141.4
154.7
142.7
168.1
186.8
151.1
166.3
140.6
155.4
142.9
169.3
188.6
151.9
165.6
142.4
152.1
135.9
170.2
189.7
152.8
166.2
143.6
10
11.12
13
14
.51
.69
4.40
.75
109.1
146.7
133.8
131.7
123.5
143.4
132.5
133.1
120.8
145.0
133.9
128.1
120.0
150.0
133.2
123.9
83.1
149.8
134.3
123.7
71.2
154.9
133.6
123.5
73.1
148.9
134.7
128.2
90.8
145.7
135.4
129.0
107.2
151.6
137.4
133.0
122.2
155.3
139.1
137.8
126.3
150.3
141.5
140.0
128.0
158.9
142.6
138.8
127.5
151.1
144.3
137.9
74.0
146.5
8.75
.67
2.68
3.31
3.21
149.2
119.8
136.8
128.6
151.0
147.8
121.9
139.9
131.3
148.2
149.5
116.2
137.1
128.6
145.7
149.0
113.9
133.6
127.2
146.2
148.9
119.6
132.5
121.5
143.6
148.3
117.4
132.6
123.8
147.1
148.6
119.1
133.0
126.7
152.3
149.4
123.1
133.8
127.5
153.0
150.5
125.1
135.0
128.0
154.4
150.7
118.8
133.9
125.1
156.8
150.0
122.9
133.8
125.9
157.2
151.2
125.1
135.1
125.9
156.7
134.5
15 Apparel p ro d u cts....................
16 Paper and products..................
20
21
22
23
26
156.0
157.7
17
18
19
20
21
Printing and publishing..........
Chemicals and products..........
Petroleum products..................
Rubber and plastic products..
Leather and products..............
27
28
29
30
31
4.72
7.74
1.79
2.24
.86
139.6
206.7
134.9
255.8
70.1
136.5
209.1
137.4
261.8
69.9
135.5
199.2
133.0
248.1
70.1
135.4
191.1
131.3
242.9
68.5
138.6
190.3
130.5
242.5
67.8
140.3
197.8
126.7
245.9
67.7
140.3
206.8
130.5
253.1
67.2
141.5
209.1
130.1
259.2
70.2
142.7
212.0
131.2
259.6
71.2
144.9
218.8
137.5
259.2
67.8
145.5
219.2
137.3
258.2
68.9
146.7
220.9
135.9
262.5
69.4
147.1
217.9
132.9
263.7
69.3
132.1
Durable manufactures
22 Ordnance, private and
governm ent......................
23 Lumber and products. . .
24 Furniture ana fixtures
25 Clay, glass, stone products . . .
19.91
24
25
32
3.64
1.64
1.37
2.74
77.9
119.3
150.0
146.5
77.5
105.2
157.1
148.8
77.9
104.5
149.5
140.8
77.5
109.7
143.1
134.5
77.1
112.8
138.6
134.2
77.2
121.7
141.1
135.7
77.1
122.6
144.8
141.4
79.1
122.2
147.2
145.2
79.6
124.9
147.2
147.8
79.5
122.0
149.0
151.4
78.9
126.3
150.5
154.9
78.6
126.3
153.0
154.0
78.9
124.8
155.1
151.9
79.9
26
27
28
29
30
Primary metals..........................
Iron and steel
................
Fabricated metal products. . . .
Nonelectrical m achinery ........
Electrical machinery................
33
331.2
34
35
36
6.57
4.21
5.93
9.15
8.05
101.6
91.7
135.0
162.8
172.7
106.4
97.4
141.4
163.2
177.0
96.1
84.4
133.2
162.1
171.4
90.4
75.4
126.1
158.3
166.6
81.7
68.1
123.8
158.5
165.0
86.0
75.3
125.8
158.8
166.7
90.1
79.8
129.0
159.1
167.5
100.6
93.3
132.8
161.1
170.0
113.4
107.4
134.1
163.4
173.0
112.1
103.5
137.4
167.5
174.9
113.9
108.0
137.6
168.9
177.9
114.3
107.8
139.1
169.0
174.6
114.8
107.4
140.8
170.5
177.3
115.3
142.6
171.7
178.6
31 Transportation equipm ent---32
Motor vehicles and p arts. . .
33
Aerospace and miscella
neous transportation
equipment......................
34 Instrum ents..............................
35 Miscellaneous manufactures ..
37
371
9.27
4.50
116.8
118.8
115.1
114.7
109.8
105.9
110.0
106.7
110.7
107.9
108.3
104.4
112.9
113.4
118.8
124.2
121.7
129.0
120.6
126.3
117.3
119.2
115.0
117.5
119.9
127.6
121.8
130.4
372-9
38
39
4.77
2.11
1.51
114.9
171.0
147.8
115.5
173.8
151.2
113.5
171.0
147.3
113.1
169.2
43.7
113.4
167.5
144.7
111.9
167.6
144.2
112.3
167.4
142.8
113.6
169.6
145.0
114.8
169.9
147.5
115.2
172.1
149.5
115.5
174.0
151.8
112.5
171.3
152.6
112.7
170.4
153.1
113.7
170.4
155.0
2
Mining....................................
Mining
8 Metal
................................
9 Coal............................................
10 Oil and gas extraction............
Nondurable manufactures
151.8
147.8
Gross value (billions of 1972 dollars, annual rates)
M ajor M arket
36 Products, total..........................
507.4
602.1
599.5
588.6
585.0
586.7
585.9
593.3
604.7
610.9
615.5
614.0
611.3
618.7
623.1
37 F in a l..........................................
38 Consumer g oods..................
39
Equipm ent............................
40 Intermediate..............................
390.9
277.5
113.4
116.6
465.4
313.5
151.9
136.7
464.5
312.5
152.0
135.0
457.3
306.3
151.0
131.3
455.6
305.8
149.8
129.4
456.9
307.7
149.2
129.9
453.0
305.1
147.9
132.9
458.0
309.0
149.0
135.3
467.7
316.6
151.1
137.1
473.0
320.0
153.0
137.9
475.5
320.3
155.2
140.0
472.6
317.2
155.4
141.5
469.9
316.2
153.6
141.5
477.0
320.9
156.1
141.7
481.2
323.3
157.9
141.9
N o te . Published groupings include some series and subtotals not shown sepa
rately. For description and historical data, see Industrial Production—1976 Revision
(Board of Governors of the Federal Reserve System: Washington. D .C.), Decem
ber 1977.
A48
2.14
Domestic Nonfinancial Statistics □ May 1981
HOUSING AND CONSTRUCTION
M onthly figures are at seasonally adjusted annual rates except as noted.
1981
1978
1979
1980'
Aug.
Sept.
Dec.
Ja n .'
F eb .'
Mar.
Private residential real estate activity (thousands of units)
N ew U nits
1 Permits authorized................................
2
1-family................................................
3 2-or-more-family................................
1,801
1,183
618
1,552
981
570
1,171
704
467
1.361
857
504
1,564
914
650
1,333
819
514
1,355
812
543
1,235
743
492
1,228
715
513
1,165
665
500
1,128
653
475
4 Started.....................................................
5
1-family...............................................
6 2-or-more-family................................
2,020
1,433
587
1,745
1,194
551
1,292
852
440
1.411
971
440
1,482
1,032
450
1,519
1,009
510
1,550
1,019
531
1,535
974
561
1,660
993
667
1,214
793
421
1,284
817
467
7 Under construction, end of period1. ..
8
1-family................................................
9 2-or-more-family................................
1,310
765
546
1,140
639
501
515
383
474
370
864
495
369
886
514
372
905
529
376
915'
535'
380'
941
544
397
944
543
401
10 C om pleted..............................................
11
l-family................................................
12 2-or-more-family................................
1,868
1,369
499
1,855
1,286
570
1,501
956
545
1.429
924
505
1,254
763
491
1,287
823
464
1,274
819
455
1,373'
895'
478'
1,249
901
348
1,373
959
414
13 Mobile homes shipped..........................
276
277
222
208
233
256
818
419
709
402
530
341
616
331
563
335
549
334
560
337
514'
336
525
332
508
337
511
326
55.8
62.7
64.9
63.2
68.5
66.1
67.1
67.2'
67.5
65.4
66.7
62.7
71.9
76.6
76.5
80.3
77.7
82.2
81.5'
79.9
79.6
80.2
3,863'
3,701'
2.970
3,280
3,120
2,960
2,580
2,560
2,520
48.7
55.1
55.5
64.0
64.9
76.2
64.2
75.5
62.7
73.4
64.3
74.9
64.5
76.1
64.1
75.7
64.5
75.5
14
15
16
17
Merchant builder activity in 1-family
units
Number s o ld ..........................................
Number for sale, end of period1 ........
Price (thousands of dollars)2
Median
Units sold............................................
Average
Units sold............................................
E xisting U nits (1-family)
18 Number s o ld .........................................
Price of units sold (thous. of dollars)2
19 M ed ian...................................................
20 A v erag e .................................................
62.1
72.7
63.0
74.0
Value of new construction3 (millions of dollars)
C o n st r u c t io n
21 Total put in p lace..........................
205,457
228.948
228,705
215,149
228,831
235,784
247,403
261,916
253,990
247,988
22 Private..............................................
23
Residential..................................
24 Nonresidential, total..................
Buildings
25
In d u strial............................
26
Comm ercial........................
27
O ther....................................
28
Public utilities and o th e r----
159,555
173,578
162.057
167,882
173,833
182,182
189,153
196,400
86,903
78.632
84,378
89,207
97,007
100,216
103,154
66,132
179.948
99,029
80,919
86,675
83.425
83,504
84,626
85,175
88,937
93,246
193,423
100,653
92,770
189,763
97,013
92,750
10,993
18,568
6,739
29,832
14,953
24,924
7,427
33,615
14,021
29,344
8,533
34,777
13.046
27.993
8.095
34.291
13,102
27,425
8,447
34,530
12,996
28,417
8,760
34,453
13,392
28,888
8,799
34,096
15,079
30,392
9,086
34,380
15,127
33,605
9,931
34,583
15,239
33,071
9,640
34,820
15,746
32,754
9,649
34,601
29 P u b lic ..............................................
30 M ilitary........................................
31
H ighw ay......................................
32
Conservation and development
33
O ther............................................
45,901
1,501
10,713
4,457
29,230
49,001
1,641
11,915
4,586
30,859
55,128
1,853
13,473
5,083
34,719
53.092
2.315
11.334
4.353
35.090
55,778
1,717
13,804
5,091
35,166
54,998
2,069
13,550
4,763
34,616
53,602
1,765
12,427
5,109
34,301
58,250
1,705
13,742
5,626
37,177
65,516
2,063
19,882
6,242
37,329
60,567
1,980
17,812
6,197
34,578
58,225
1,974
15,121
5,977
35,153
93,423
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly comparable
with data in prior periods due to changes by the Bureau of the Census in its
estimating techniques. For a description of these changes see Construction Reports
(C-30-76^-5), issued by the Bureau in July 1976.
N o t e . Census Bureau estimates for all series except (a) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing Institute
and seasonally adjusted by the Census Bureau, and (b) sales and prices of existing
units, which are published by the National Association of Realtors. All back ana
current figures are available from originating agency. Permit authorizations are
those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978.
Prices
2.15
A49
CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
12 months to
3 months (at annual rate) to
1980
1980
Mar.
1 month to
1981
1980
Index
level
Mar.
1981
(1967
=100)1
1981
1981
Mar.
June
Sept.
Dec.
Mar.
Nov.
Dec.
Jan.
Feb.
Mar.
14.7
10.6
11.4
7.8
13.2
9.6
1.1
1.0
.7
1.0
.6
265.1
2 Com m odities................................
3 Food ..........................................
4 Commodities less food............
5
D urable..................................
6
N o n d u rab le..........................
7 Services..........................................
8 R ent............................................
9 Services less re n t......................
13.7
7.3
16.6
9.8
25.3
16.1
8.9
17.2
9.6
10.1
9.4
8.3
10.7
11.9
8.8
12.4
5.4
5.8
5.2
7.5
3.8
20.5
10.0
22.1
13.2
19.7
10.6
15.2
5.0
.7
8.6
- .3
11.0
13.1
9.9
11.8
6.2
16.8
9.6
17.8
8.6
2.1
12.3
- .7
29.8
10.3
7.0
10.9
1.0
1.2
.9
1.3
.5
1.3
.6
1.4
.7
1.0
.6
.4
.7
1.4
.7
1.5
.6
- .1
1.0
.3
2.1
.9
.7
.9
1.1
.3
1.4
- .3
3.2
.8
.5
.9
.5
.4
.5
- .1
1.3
.8
.5
.8
249.8
272.2
237.0
219.8
257.5
292.5
203.0
309.5
Other groupings
10 All items less f o o d ......................
11 All items less food and e n e rg y ..
12 H om eow nership..........................
16.3
12.6
21.7
10.6
9.9
11.5
12.7
14.0
26.4
5.7
5.8
-3 .5
13.2
14.4
23.1
11.7
5.8
3.1
1.1
1.1
1.7
1.0
1.1
1.5
1.0
.6
.5
1.1
.4
0
.7
.4
.3
262.3
248.1
336.8
13.9
15.2
3.3
21.7
9.8
19.2
10.5
10.4
7.8
11.4
11.0
10.0
8.4
7.6
-1 .4
12.2'
10.9
6.2
13.5
14.5
31.0
7 .5 '
9.9
7.8
8 .3 '
7 .4 '
4 .3 '
8 .9 '
11.8'
12.9
12.0
12.1
.3
17.4
11.5
13.2
.7 '
.7 '
.3 '
.9 '
.6 '
.9 '
.4 '
.3 '
0 .0 '
.4 '
.4 '
1.6'
.7 '
.7 '
-.1 '
1.1'
.9 '
1.2'
.8
.8
- .6
1.3
1.1
.6
1.3
1.4
.8
1.6
.7
1.3
265.3
267.3
251.8
271.8
257.8
304.7
24.7
-1 .2
23.1
6.3
.2
- .3
32.3
73.9
27.5'
- 4 .0 '
35.7
-2 3 .1
2 .4 '
.2
1.8'
- 2 .6
l
00
C onsumer P rices2
1 All item s........................................
11.5
- 3 .3
- .4
- 2 .0
484.8
262.0
P roducer P rices
13 Finished goods..............................
14 C onsum er..................................
15
Foods......................................
16
Excluding foods....................
17 Capital equipment....................
18 Intermediate materials3 ..............
Crude materials
19 N onfood....................................
20 Food ..........................................
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers.
-1 .1
3.
Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
Source . Bureau of Labor Statistics.
A50
2.16
Domestic Nonfinancial Statistics □ May 1981
GROSS NATIONAL PRODUCT AND INCOME
B illions o f c u rre n t d o llars ex c e p t as n o te d ; q u a rte rly d a ta a re at seaso n ally a d ju ste d a n n u a l ra te s.
1980
1980
Ql
Q2
04
03
Ql
G ross N ational P roduct
1 T o ta l.........................................................................
2,156.1
2,413.9
2,626.1
2,571.7
2,564.8
2,637.3
2,730.6
2,826.8
By source
Personal consumption expenditures......................
Durable goods......................................................
Nondurable goods................................................
Services..................................................................
1.348.7
199.3
529.8
619.6
1,510.9
212.3
602.2
696.3
1,672.8
211.9
675.7
785.2
1.631.0
220.9
661.1
749.0
1,626.8
194.4
664.0
768.4
1,682.2
208.8
674.2
799.2
1,751.0
223.3
703.5
824.2
1,805.4
238.1
724.4
842.8
375.3
353.2
242.0
78.7
163.3
395.3
401.2
296.0
108.8
187.1
105.3
100.3
415.6
413.1
297.8
108.2
189.7
115.2
110.1
390.9
383.5
289.8
108.4
181.4
93.6
88.9
377.1
393.2
294.0
107.3
186.8
99.2
94.5
397.7
415.1
302.1
111.5
190.7
113.0
107.6
423.1
431.0
314.7
116.2
198.5
116.3
110.9
2
3
4
5
6 Gross private domestic investm ent......................
7 Fixed investment..................................................
8
Nonresidential..................................................
9
Structures ......................................................
10
Producers’ durable equipm ent..................
11
Residential structures......................................
12
N onfarm ........................................................
106.9
415.8
398.3
279.7
96.3
183.4
118.6
113.9
Change in business inventories..........................
N onfarm ............................................................
22.2
21.8
17.5
13.4
-5 .9
-4 .7
2.5
1.5
7.4
6.1
-1 6 .0
-1 2 .3
-1 7 .4
-1 4 .0
- 7 .9
-5 .9
15 Net exports of goods and services........................
16 Exports..................................................................
17 Im ports..................................................................
-0 .6
219.8
220.4
13.4
281.3
267.9
23.3
339.8
316.5
8.2
337.3
329.1
17.1
333.3
316.2
44.5
342.4
297.9
23.3
346.1
322.7
24.3
371.5
347.2
18 Government purchases of goods and services . . .
19 F ed eral..................................................................
20 State and local......................................................
432.6
153.4
279.2
473.8
167.9
305.9
534.7
198.9
335.8
516.8
190.0
326.8
530.0
198.7
331.3
533.5
194.9
338.6
558.6
346.6
574.1
219.6
354.5
By major type of product
21 Final sales, to t a l......................................................
22 G o o d s....................................................................
23
D urable..............................................................
24
N ondurable......................................................
25 Services..................................................................
26
Structures.............................................................
2.133.9
946.6
409.8
536.8
976.3
233.2
2.396.4
1.055.9
451.2
604.7
1,097.2
260.8
2.632.0
1.130.4
458.6
671.9
1.229.6
266.0
2,569.1
1.116.9
456.4
660.5
1,178.6
276.2
2.557.4
1.106.4
444.6
661.8
1,205.6
252.8
2.653.4
1.129.4
456.5
672.9
1,249.0
258.9
2.748.0
1.169.0
476.7
698.2
1,285.3
276.4
2.834.7
1.225.2
489.7
735.5
1.314.7
287.0
27 Change in business inventories..............................
28 Durable goods......................................................
29 Nondurable goods................................................
22.2
17.8
4.4
17.5
11.5
6.0
-5 .9
-4 .0
-1 .8
2.5
-1 1 .8
14.3
7.4
3.3
4.1
-1 6 .0
-8 .4
- 7 .7
-1 7 .4
.7
-1 8 .1
- 7 .9
-1 4 .2
6.3
1,483.0
1.480.7
1.501.9
1,463.3
1,471.9
1,485.6
1.509.2
13
14
111.2
30 M emo: Total GNP in 1972 dollars........................
212.0
National I ncome
31 T o ta l..........................................................................
1.745.4
1,963.3
2.121.4
2.088.5
2.070.0
2.122.4
2.204.8
n.a.
32 Compensation of employees..................................
33 Wages and salaries..............................................
34
Government and government enterprises...
35
O ther..................................................................
36 Supplement to wages and salaries....................
37
Employer contributions for social insurance
38
Other labor in c o m e........................................
1.299.7
1.105.4
219.6
885.7
194.3
92.1
1.596.5
1.343.6'
253.6'
1.090.0
252.9
115.8
137.1
1,558.0
1.314.5
243.3
1,067.9
243.5
102.2
1.460.9
1.235.9
235.9
1,000.0
225.0
106.4
118.6
130.9
1.569.0
1,320.4
250.5
1,069.9
248.6
113.6
135.1
1.597.4
1.342.3
253.9
1.088.4
255.0
116.0
139.1
1.661.8
1,387.3
263.3
1,134.0
264.5
121.0
143.5
1,721.8
1.442.3
267.0
1.175.3
279.5
131.5
148.0
39 Proprietors’ income1................................................
40
Business and professional1 ................................
41
Farm1 ....................................................................
117.1
91.0
26.1
131.6
100.7
30.8
133.7
107.9
25.7
124.9
101.6
23.3
129.7
107.6
22.1
134.0
111.6
22.5
131.4
112.4
19.0
32.4
32.7
130.6
107.2
23.4
112.6
42 Rental income of persons2 ....................................
27.4
30.5
31.8
31.2
31.5
32.0
43 Corporate profits1....................................................
44
Profits before tax3................................................
45
Inventory valuation adjustm ent........................
46 Capital consumption adjustm ent......................
199.0
223.3
-2 4 .3
-1 3 .5
196.8
255.4
-4 2 .6
-1 5 .9
182.7'
245.5
-4 5.7
-1 7.2
200.2
277.1
-6 1 .4
-1 5 .4
169.3
217.9
-3 1.1
-1 7 .6
177.9
237.6
-4 1 .7
-1 7 .9
183.3'
249.5'
-4 8 .4
-1 7 .8
n.a.
n.a.
-3 8 .4
-1 6 .9
47 Net in te re s t..............................................................
115.8
143.4
179.8
165.4
175.3
185.3
193.3
200.9
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustments.
3. For after-tax profits, dividends, and the like, see table 1.49.
S o u rce. Survey of Current Business (Department of Commerce).
National Income Accounts
2.17
A51
PERSONAL INCOME AND SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1980
Account
1978
1981
1980
1979
Q2
Ql
Q3
Q 4'
Ql
P ersonal Income and S aving
16
Old-age survivors, disability, and health insurance b en efits.........
1,721.8
1,943.8
2,160.2
2,088.2
2,114.5
2,182.1
2,256.2
2,317.7
1,105.2
389.1
299.2
270.5
226.1
219.4
1,236.1
437.9
333.4
303.0
259.2
236.1
1,343.7
465.4
350.7
328.9
295.7
253.6
1,314.7
461.7
347.9
322.6
283.6
246.8
1,320.4
456.0
343.2
323.2
290.8
250.5
1,341.8
460.1
346.7
329.2
298.7
253.9
1,397.8
484.0
364.0
340.6
310.0
263.3
1,442.3
501.1
377.0
351.4
322.8
267.0
102.2
117.2
91.0
26.1
27.4
43.1
173.2
223.3
116.2
118.6
131.6
100.8
30.8
30.5
48.6
209.6
249.4
131.8
137.1
130.6
107.2
23.4
31.8
54.4
256.3
294.2
153.8
130.9
133.7
107.9
25.7
31.2
52.4
239.9
271.7
142.0
135.1
124.9
101.6
23.3
31.5
54.2
253.6
280.7
144.7
139.1
129.7
107.6
22.1
32.0
55.1
261.8
310.7
163.2
143.5
134.0
111.6
22.5
32.4
56.1
269.7
313.9
165.3
148.0
131.4
112.4
19.0
32.7
58.0
288.4
319.1
169.2
69.6
80.6
87.9
86.2
85.9
88.1
91.2
102.2
1,721.8
1,943.8
2.160.2
2,088.2
2,114.5
2,182.1
2,256.2
2,317.7
Less: Personal tax and nontax p a ym ents............................................
258.8
302.0
338.5
323.1
330.3
341.5
359.2
372.2
20 E q u als: Disposable personal incom e.......................................................
1,462.9
1,641.7
1,821.7
1.765.1
1,784.1
1,840.6
1,897.0
1,945.5
21
19
Less: Personal o u tla y s................................................................................
1,386.6
1,555.5
1,720.4
1,678.7
1,674.1
1,729.2
1,799.4
1,854.2
22 E q u a ls: Personal savin g................................................................................
76.3
86.2
101.3
86.4
110.0
111.4
97.6
91.3
M emo :
Per capita (1972 dollars)
Gross national product................................................................................
Personal consumption expenditures.......................................................
Disposable personal in c o m e .....................................................................
Saving rate (p e r c e n t).......................................................................................
6,568
4,136
4,487
5.2
6,721
4,219
4,584
5.2
6,646
4,196
4,571
5.6
6.768
4,251
4,600
4.9
6,580
4,134
4,532
6.2
6,597
4,172
4,565
6.1
6,641
4,232
4,585
5.1
6,731
4,272
4,604
4.7
23
24
25
26
G ross S aving
27 Gross saving..............................................................................................
28
29
30
31
Gross private savin g.........................................................................................
Personal s a v in g ..................................................................................................
Undistributed corporate profits1 ................................................................
Corporate inventory valuation adjustm ent...............................................
355.2
412.0
404.5
394.5
402.0
406.7
n.a.
355.4
76.3
57.9
-2 4 .3
398.9
86.2
59.1
-4 2 .6
432.9
101.3
44.3
-4 5 .7
413.0
86.4
52.1
-6 1 .4
435.9
110.0
42.1
-3 1.1
446.5
111.4
42.8
-4 1 .7
436.4
97.6
40.4
-4 8 .4
91.3
-3 8 .4
136.4
84.8
.0
155.4
98.2
.0
175.4
111.8
.0
167.1
107.4
.0
173.0
110.7
.0
178.4
113.4
.5
183.2
115.8
- .5
187.5
119.0
.0
-0 .2
-2 9 .2
29.0
11.9
-1 4 .8
26.7
- 3 2 .1 '
-6 1 .2
29.1
1.7
-3 6 .3
26.6
-2 9 .6
-6 6 .5
23.9
-4 5 .6
-7 4 .2
28.6
-3 0 .8
-6 7 .9
37.1
n.a.
n.a.
n.a.
401.9'
n.a.
n.a.
Capital consumption allowances
32 C orporate.............................................................................................................
33 Noncorporate......................................................................................................
34 Wage accruals less disbursem ents..............................................................
35 Government surplus, or deficit ( - ) , national income and product
36
37
a cco u n ts......................................................................................................
F ed era l.............................................................................................................
State and local................................................................................................
38 Capital grants received by the United States, n et.................................
.0
1.1
1.1
1.1
1.1
1.1
1.1
1.2
39 Gross investment......................................................................................
361.6
414.1
401.2
407.3
392.5
405.0
400.1
426.6
40 Gross private dom estic....................................................................................
41 Net foreign..........................................................................................................
375.3
-1 3 .8
415.8
- 1 .7
395.3
5.9
415.6
-8 .3
390.9
1.7
377.1
27.8
397.7
2.3
423.1
3.5
42 Statistical discrepancy..............................................................................
6.4
2.2
2.8
- 1 .9
3.0
- 6 .6
n.a.
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
So u r c e .
- .7 '
Survey o f Current Business (Department of Commerce).
A52
3.10
International Statistics □ May 1981
U.S. INTERNATIONAL TRANSACTIONS Summary
Millions of dollars; quarterly d ata are seasonally adjusted except as n o te d .1
1980
1979
Item credits or debits
1 Balance on current account........................................................
2 Not seasonally ad ju sted ..........................................................
1978
1979
1980 p
04
01
02
Q4 p
03
-14,259
-7 0 5
118
-1,735
553
-2,621
-2,426
-2,441
-681
4,493
102
687
3,123
3
4
5
6
7
8
Merchandise trade balance2....................................................
Merchandise exports............................................................
Merchandise imports............................................................
Military transactions, n e t........................................................
Investment income, net3..........................................................
Other service transactions, n e t ..............................................
-33,759
142,054
-175,813
886
20,899
2,769
-29,386
182,068
-211,454
-1,274
32,509
3,112
-27,354
221,781
-249,135
-3,309
32,534
5,206
-9,158
50,239
-59,397
-7 0 0
8,833
792
-10,848
54,604
-65,452
-9 2 2
10,062
899
-7,503
54,605
-62,108
-9 9 4
6,102
1,280
2,858
56,181
-59,039
-6 3 6
8,056
1,458
-6 ,1 4 5
56,391
-62,536
-7 5 8
8,316
1,570
9
10
Remittances, pensions, and other tra n sfers........................
U.S. government grants (excluding m ilitary)......................
-1,884
-3,171
-2.142
-3,5 2 4
-2,452
-4,506
-6 6 5
-8 8 7
-5 6 5
-1,247
-5 6 4
-7 6 2
-5 7 8
-9 4 9
-7 4 7
-1 ,5 4 9
11 Change in U.S. government assets, other than official re
serve assets, net (increase, - ) ..........................................
-4,644
-3.783
-5,111
-9 2 5
-1.467
-1,191
-1,3 7 4
-1 ,0 7 9
12 Change in U.S. official reserve assets (increase, - ) ............
13 G old............................................................................................
14 Special drawing rights (S D R s )..............................................
15 Reserve position in International Monetary Fund..............
16 Foreign currencies....................................................................
732
-6 5
1,269
4,231
-4,683
-1.132
-6 5
-1,136
-1 8 9
257
-8,155
0
-1 6
-1,667
-6,472
-6 4 9
-6 5
0
27
-611
-3.268
0
-1,152
-3 4
-2.082
502
0
112
-9 9
489
-1,1 0 9
0
-261
-2 9 4
-5 5 4
-4 ,2 7 9
0
1,285
-1,2 4 0
-4,3 2 4
17 Change in U.S. private assets abroad (increase, - ) 3............
18 Bank-reportea claim s..............................................................
19 Nonbank-reported claims........................................................
20
U.S. purchase of foreign securities, n e t ..............................
21
U.S. direct investments abroad, net3....................................
-57,279
-33,631
-3,853
-3.450
-16,345
-56.858
-25,868
-2.029
-4,643
-24.318
-71,236
-46,608
n.a.
-3,188
-20,592
-11,918
-7.213
410
-9 8 6
-4.129
-7,971
-2 7 4
-1,4 7 4
-7 6 5
-5,458
-25,019
-21,051
147
-1.246
-2,869
-16,652
-12,268
479
-8 0 5
-4,058
-21,409
-13,015
n.a.
-371
- 8,207
22 Change in foreign official assets in the United States
(increase, + ) ........................................................................
23
U.S. Treasury securities..........................................................
24
Other U.S. government obligations......................................
25
Other U.S. government liabilities4........................................
26 Other U.S. liabilities reported by U.S. b an k s....................
27 Other foreign official assets5 ..................................................
33,292
23,523
666
2,220
5,488
1,395
- 14,270
-22,356
465
-7 1 4
7.219
1.116
16,179
9,640
2,187
1,375
-8 4
3,061
-1,221
-5,769
41
-9 2 4
4,881
550
-7.215
-5.357
801
181
-3,185
345
7,775
4,314
250
737
1,652
822
7,991
3,769
549
242
2,006
1,425
7,628
6,914
587
215
-5 5 7
469
28 Change in foreign private assets in the United States
(increase, + ) 3 ......................................................................
29 U.S. bank-reported liabilities................................................
30
U.S. nonbank-reported liabilities..........................................
31
Foreign private purchases of U.S. Treasury securities, net
32
Foreign purchases of other U.S. securities, n e t..................
33
Foreign direct investments in the United States, net3 . . . .
30,804
16,259
1,640
2,197
2,811
7,896
51.845
32,668
1,692
4.830
2,942
9.713
31,446
10,687
n.a.
2,693
7,443
8,204
5,246
400
1,050
920
313
2.563
14,409
6,355
683
3,278
2,427
1.666
174
-4,208
1,331
-1,225
1,194
3.082
3,772
194
405
-2 5 4
990
2,437
13,092
8,346
n.a.
894
2,832
1,020
0
11,354
1.139
23,765
1,152
35,605
0
11.202
2,400
1,152
6,981
-9 3
0
20,200
1,465
0
2,879
-4,032
0
5,544
2,658
11,354
23.765
35,605
8,802
7,074
18,735
6,911
2,886
34 Allocation of SD R s......................................................................
35 D iscrepancy..................................................................................
36 Owing to seasonal adjustments..............................................
37 Statistical discrepancy in recorded data before seasonal
a d ju stm en t........................................................................
M emo :
Changes in official assets
U.S. official reserve assets (increase, - ) ............................
Foreign official assets in the United States
(increase, + ) ....................................................................
40 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 22
above) ....................................................................................
41 Transfers under military grant programs (excluded from
lines 4, 6, and 10 a b o v e )....................................................
38
39
732
-1,132
-8,155
-6 4 9
-3,268
502
-1,109
-4,279
31,072
-13.556
14,804
-2 9 7
-7,396
7,038
7,749
7,415
-1,137
5,558
12,985
5,005
2,955
4,749
4,391
890
236
305
635
139
144
155
125
211
1. Seasonal factors are no longer calculated for lines 12 through 41.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing; military exports
are excluded from merchandise data and are included in line 6.
3. Includes reinvested earnings of incorporated affiliates.
4. Primarily associated with military sales contracts and other transactions ar
ranged 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.
N o te . Data are from Bureau of Economic Analysis, Survey of Current Business
(U.S. Department of Commerce).
Trade and Reserve Assets
3.11
A53
U.S. FOREIGN TRADE
M illions o f d o lla rs ; m o n th ly d a ta a re s easo n ally a d ju ste d .
1980
1981
1980
Sept.
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipm ents........................................
2
GENERAL IMPORTS including mer
chandise for immediate consump
tion plus entries into bonded
warehouses......................................
3 Trade balance........................................
143,682
181,860
220,684
174,759
209,458
245,010
-31,075
-27,598
-24,326
N o te . The data in this table are reported by the Bureau of Census data on a
free-alongside-ship (f.a.s.) value basis—that is, value at the port of export. Begin
ning in 1981, foreign trade of the U.S. Virgin Islands is included in the Census
basis trade data; this adjustment has been made for all data shown in the table.
The Census basis data differ from merchandise trade data shown in table 3.10,
U.S. International Transactions Summary, for reasons of coverage and timing. On
the export side, the largest adjustments are: (a) the addition of exports to Canada
not covered in Census statistics, and (b) the exclusion of military sales (which are
combined with other military transactions and reported separately in the “service
3.12
18,828
-
Oct.
19,214
Jan.
Nov
18,715
19,251
Feb.
18,825
19,764
21,434
19,940
20,347
19,860
21,436
23,194
21,922
20,949
1,112
-1,134
-1,145
-2,185
-4 ,369
-2,158
485
account” in table 3.10, line 6). On the import side, additions are made for gold,
ship purchases, imports of electricity from Canada and other transactions; military
payments are excluded and shown separately as indicated above.
S o u r c e . FT900 “Summary of U .S. Export and Import Merchandise Trade”
(U .S. Department of Commerce, Bureau of the Census).
U.S. RESERVE ASSETS
Millions of dollars, end of period
1980
Type
1978
1979
1981
1980
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr . P
1 Total1 ..........................................................
18,650
18,956
26,756
23,967
25,673
26,756
28,316
29,682
30,414
29,698
2 Gold stock, including Exchange Stabili
zation Fund1 ......................................
11,671
11,172
11,160
11,163
11,162
11,160
11,159
11,156
11,154
11,154
3 Special drawing rights2 3 ..........................
1,558
2,724
2,610
3,939
3,954
2,610
3,628
3,633
3,913
3,712
4
Reserve position in International Mone
tary Fund2 ..........................................
1,047
1,253
2,852
1,671
1,822
2,852
2,867
5 Foreign currencies4-5 ................................
4,374
3,807
10,134
7,194
8,735
10,134
10,662
1. Gold held under earmark at Federal Reserve Banks for foreign and inter
national accounts is not included in the gold stock of the United States; see table
3.22.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through December 1980, 16 currencies were used; from January
1981, 5 currencies have been used. The U.S. SDR holdings and reserve position
in the IMF also are valued on this basis beginning July 1974.
3,114'
11,783
3,452
3,581
11,895
11,251
3. Includes allocations by the International Monetry Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus net transactions in SDRs.
4. Beginning November 1978, valued at current market exchange rates.
5. Includes U.S. government securities held under repurchase agreement against
receipt of foreign currencies, if any.
A54
3.13
International Statistics □ May 1981
FOREIGN BRANCHES OF U.S. BANKS
Balance Sheet Data
M illions of dollars, end o f period
1980
Asset account
1977
19781
1981
1979
Aug.
Sept.
Oct.
Nov.
Dec.
396,939
Jan.
Feb.?
All foreign countries
1 Total, all currencies..................................
258,897
306,795
364,233
386,467
385,884
383,178
389,011
394,263
398,168
2 Claims on United S ta te s ..........................
3
Parent b a n k ............................................
4
O ther........................................................
11,623
7,806
3,817
17,340
12,811
4,529
32,302
25,929
6,373
36,864
26,711
10,153
29,341
19,685
9,656
30,476
21,440
9,036
30,617
22,254
8,363
28,442'
20,719
7,723'
29,506
20,630
8,876
31,984
21,396
10,588
5 Claims on foreigners..................................
6
Other branches of parent b a n k ..........
7
B a n k s ......................................................
8
Public borrowers2 ..................................
9 Nonbank foreigners..............................
238,848
55,772
91,883
14,634
76,560
278,135
70,338
103,111
23,737
80,949
317,175
79,661
123,413
26,072
88,029
332,531
72,558
136,590
26,113
97,270
339,204
73,856
139,902
26,740
98,706
335,463
72,441'
138,276'
26,548
98,198
340,690
74,026'
139,952'
26,935
99,777
350,784'
76,542'
144,600'
27,594
102,048'
347,153
75,300
143,950
27,428
100,475
348,103
75,238
145,282
27,757
99,826
10 Other assets................................................
8,425
11 Total payable in U.S. dollars....................
193,764
12 Claims on United S ta te s ..........................
13 Parent b a n k ............................................
14 O ther........................................................
11,320r
14,756'
17,072'
17,339'
17,239 '
17,704'
224,940
267,711
283,974
282,171
279,689
284,269
11,049
7,692
3,357
16,382
12,625
3,757
31,171
25,632
5,539
35,551
26,390
9,161
28,138
19,414
8,724
29,059
21,043
8,016
29,173
21,853
7,320
15 Claims on foreigners..................................
16 Other branches of parent b a n k ..........
17 B a n k s ......................................................
18 Public borrowers2 ..................................
19 Nonbank foreigners..............................
178,896
44,256
70,786
12,632
51,222
203,498
55,408
78,686
19,567
49,837
229,118
61,525
96,261
21,629
49,703
239,561
55,106
108,073
21,786
54,596
245,588
56,603
111,878
22,305
54,802
242,018
55,213r
109,428'
22,578
54,799
246,238
57,202'
110,779'
22,846
55,411
20 O ther assets................................................
3,820
8,862
8,445
5,060'
7,422'
8,612
8,858
17,713'
17,604
18,081
290,844
295,156
27,173'
20,368
6,805'
28,250
20,338
7,912
30,730
21,143
9,587
253,391'
58,263'
115,963'
23,391'
55,774'
253,098
58,544
116,163
23,035
55,356
254,583
57,691
117,637
23,297
55,958
9,153'
9,496
9,843
289,717
United Kingdom
21 Total, all currencies..................................
90,933
106,593
130,873
136,467
137,447
138,158
140,715
142,781
142,716
143,818
22 Claims on United S ta te s ..........................
23
Parent b a n k ............................................
24 O ther........................................................
4,341
3,518
823
5,370
4,448
922
11,117
9,338
1,779
8,465
6,023
2,442
8,022
5,788
2,234
8,216
5,969
2,247
8,771
6,552
2,219
7,491
5,792
1,699
7,716
5,278
2,438
9,200
6,471
2,729
25 Claims on foreigners..................................
26 Other branches of parent b a n k ..........
27
B a n k s ......................................................
28
Public borrowers2 ..................................
29 Nonbank foreigners..............................
84,016
22,017
39,899
2,206
19,895
98,137
27,830
45,013
4,522
20,772
115,123
34,291
51,343
4,919
24,570
121,805
31,607
55,530
5,865
28,803
123,369
30,858
57,066
6,251
29,194
123,854
31,431
56,723
6,113
29,587
125,859
32,267
57,423
6,405
29,764
129,249
34,538
57,658
6,684
30,369
129,107
35,127
57,975
6,465
29,540
128,457
35,376
58,011
6,445
28,625
30 O ther assets................................................
2,576
3,086
4,633
6,197
6,056
6,088
6,085
6,041
5,893
6,161
31 Total payable in U.S. dollars....................
66,635
75,860
94,287
93,720
94,784
95,287
97,246
98,9i3
99,930
101,865
32 Claims on United S ta te s ..........................
33
Parent b a n k ............................................
34
O ther........................................................
4,100
3,431
669
5,113
4,386
727
10,746
9,297
1,449
7,954
5,960
1,994
7,656
5,744
1,912
7,647
5,817
1,830
8,233
6,410
1,823
7,098
5,701
1,397
7,293
5,221
2,072
8,754
6,418
2,336
35 Claims on foreigners..................................
36 O ther branches of parent b a n k ..........
37 B a n k s ......................................................
38
Public borrowers2 ..................................
39 Nonbank foreigners..............................
61,408
18,947
28,530
1,669
12,263
69,416
22,838
31,482
3,317
11,779
81,294
28,928
36,760
3,319
12,287
82,705
25,565
39,070
4,327
13,743
84,355
24,913
40,917
4,663
13,862
84,849
25,593
40,312
4,551
14,393
86,246
26,710
40,542
4,706
14,288
88,967
28,231
41,373
4,909
14,454
89,615
28,759
42,373
4,661
13,822
90,083
28,937
42,207
4,748
14,191
40 Other assets................................................
1,126
3,061
2,773
2,791
2,767
2,848
3,022
3,028
1,331'
2,247'
Bahamas and Caymans
41 Total, all currencies..................................
79,052
91,735
108,977
128,515
123,179
119,524
119,367
123,754
123,460
124,809
42 Claims on United S ta te s ..........................
43
Parent b a n k ............................................
44 O ther........................................................
5,782
3,051
2,731
9,635
6,429
3,206
19,124
15,196
3,928
25,882
19,149
6,733
18,305
11,839
6,466
19,656
13,837
5,819
18,325
13,071
5,254
17,751
12,631
5,120
18,370
12,814
5,556
19,150
12,371
6,779
45 Claims on foreigners..................................
46
Other branches of parent b a n k ..........
47
B a n k s ......................................................
48 Public borrowers2 ..................................
49 Nonbank foreigners..............................
71,671
11,120
27,939
9,109
23,503
79,774
12,904
33,677
11,514
21,679
86,718
9,689
43,189
12,905
20,935
98,496
13,160
51,809
12,055
21,472
100,905
14,724
52,749
12,078
21,354
95,959
13,076'
49,900'
12,441
20,542
96,800
13,118'
50,626'
12,213
20,843
101,903
13,315'
54,885'
12,574
21,129
100,792
12,956
54,252
12,558
21,026
101,199
11,998
55,280
12,605
21,316
50 O ther assets................................................
1,599
2,326
3,135
4,137
3,969
3,909
4,242
4,100
4,298
4,460
51 Total payable in U.S. dollars....................
73,987
85,417
102,368
122,667
117,245
113,683
113,560
117,571
117,549
119,007
For notes see opposite page.
Overseas Branches
3.13
A55
Continued
1980
Liability account
1977
19781
1981
1979
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.P
394,263
398,168
92,143
38,431
13,594
40,118
90,346
36,164
13,951
40,231
287,769
72,594
131,633
28,870
54,672
293,672
72,946
133,707
28,529
58,490
All foreign countries
52 Total, all currencies..................................
258,897
306,795
364,233
386,467
385,884
383,178
389,011
53 To United S tates........................................
44,154
24,542
66,686
24,530
13,968
28,188
87,606
37,466
14,725
35,415
84,068
38,490
12,635
32,943
84,152
37,187
12,860
34,105
86,580
36,957
13,410
36,213
283,344
77,601
122,849
35,664
47,230
284,141
69,178
130,360
33,080
51,523
287,810
70,689
131,022
33,086
53,013
285,198
69,691
132,142
30,713
52,652
288,225
71,498
132,237
31,115
53,375
Other banks in United S tates..............
N onbanks................................................
19,613
58,012
28,654
12,169
17,189
57 To foreigners..............................................
58
Other branches of parent b a n k ..........
59 B a n k s ......................................................
60 Official institutions................................
61
Nonbank foreigners..............................
206,579
53,244
94,140
28,110
31,085
238,912
67,496
97,711
31,936
41,769
55
56
396,939
90,874
39,058
14,485'
37,286'
291,571
73,913
130,421
32,438
54,799
62 Other liabilities..........................................
8,163
9,871
14,203
14,720
14,006
13,828
14,206
14,539
14,351
14,150
63 Total payable in U.S. dollars....................
198,572
230,810
273,819
291,873
289,163
287,177
292,425
300,850
301,335
305,649
64 To United States........................................
65
Parent b a n k ............................................
66 Other banks in United S tates..............
67 N onbanks................................................
42,881
24,213
18,669
55,811
27,519
11,915
16,377
64,530
23,403
13,771
27,356
84,698
35,906
14,419
34,373
81,125
36,825
12,410
31,890
81,255
35,431
12,581
33,243
83,764
35,243
13,114
35,407
89,597
36,856
13,420
39,321
88,016
34,746
13,749
39,521
68 To foreigners..............................................
69
Other branches of parent b a n k ..........
70 B a n k s ......................................................
71
Official institutions................................
72 Nonbank foreigners..............................
151,363
43,268
64,872
23,972
19,251
169,927
53,396
63,000
26,404
27,127
201,476
60,513
80,691
29,048
31,224
198,971
53,355
86,420
26,165
33,031
200,281
55,146
85,387
25,659
34,089
198,541
53,695
86,961
23,364
34,521
200,814
55,543
86,525
23,840
34,906
204,630
56,941
86,491
24,689
36,509
203,549
56,494
88,213
21,842
37,000
209,129
56,372
90,590
21,894
40,273
73 Other liabilities..........................................
4,328
5,072
7,813
8,204
7,757
7,381
7,847
8,166
8,189
8,504
88,054
37,418
14,215'
36,421'
United Kingdom
74 Total, all currencies..................................
90,933
106,593
130,873
136,467
137,447
138,158
140,715
142,781
142,716
143,818
75 To United States........................................
76 Parent b a n k ............................................
77 O ther banks in United S tates..............
78 N onbanks................................................
7,753
1,451
6,302
9,730
1,887
4,189
3,654
20,986
3,104
7,693
10,189
20,608
2,542
5,910
12,156
19,343
2,951
5,361
11,031
19,157
2,712
5,800
10,645
20,594
3,198
5,732
11,664
21,735
4,176
5,716
11,843
23,183
4,228
5,393
13,562
22,697
3,189
5,785
13,723
79 To foreigners..............................................
80 O ther branches of parent b a n k ..........
81
B a n k s ......................................................
82 Official institutions................................
83 Nonbank foreigners..............................
80,736
9,376
37,893
18,318
15,149
93,202
12,786
39,917
20,963
19,536
104,032
12,567
47,620
24,202
19,643
109,604
13,343
51,452
22,600
22,209
112,412
13,706
53,776
22,444
22,486
113,539
13,940
56,772
19,807
23,020
114,813
13,951
58,127
20,437
22,298
115,582
13,933
55,848
21,412
24,389
114,208
13,599
56,487
19,199
24,923
115,696
12,934
56,681
19,607
26,474
84 Other liabilities..........................................
2,445
3,661
5,855
6,255
5,692
5,462
5,308
5,464
5,325
5,425
85 Total payable in U.S. dollars....................
67,573
77,030
95,449
96,453
96,832
97,055
99,135
102,300
103,015
105,265
86 To United States........................................
87
Parent b a n k ............................................
88 Other banks in United S tates..............
89 N onbanks................................................
7,480
1,416
6,064
9,328
1,836
4,101
3,391
20,552
3,054
7,651
9,847
20,007
2,496
5,809
11,702
18,687
2,892
5,259
10,536
18,551
2,634
5,714
10,203
19,978
3,101
5,616
11,261
21,080
4,078
5,626
11,376
22,554
4,126
5,300
13,128
22,189
3,131
5,702
13,356
90 To foreigners..............................................
91
Other branches of parent b a n k ..........
92 B a n k s ......................................................
93
Official institutions................................
94 Nonbank foreigners..............................
58,977
7,505
25,608
15,482
10,382
66,216
9,635
25,287
17,091
14,203
72,397
8,446
29,424
20,192
14,335
73,431
9,128
31,726
18,253
14,324
75,422
9,588
32,891
18,046
14,897
76,114
9,891
35,495
15,338
15,390
76,696
9,770
35,998
15,989
14,939
78,512
9,600
35,097
17,024
16,791
77,742
9,456
35,581
14,941
17,764
80,007
8,922
36,192
15,420
19,473
95 Other liabilities..........................................
1,116
1,486
2,500
3,015
2,723
2,390
2,461
2,708
2,719
3,069
123,754
Bahamas and Caymans
% Total, all currencies..................................
79,052
91,735
108,977
128,515
123,179
119,524
119,367
123,460
124,809
97 To United States........................................
98 Parent b a n k ............................................
99 Other banks in United States..............
100 N onbanks................................................
32,176
20,956
11,220
39,431
20,482
6,073
12,876
37,719
15,267
5,204
17,248
58,925
29,189
7,460
22,276
56,317
29,355
6,075
20,887
56,123
27,678
5,945
22,500
56,860
26,871
6,518
23,471
59,599
28,105
7,391'
24,103'
58,928
26,516
7,173
25,239
58,515
26,175
7,212
25,128
101 To foreigners..............................................
102 Other branches of parent b a n k ..........
103 B a n k s ......................................................
104 Official institutions................................
105 Nonbank foreigners..............................
45,292
12,816
24,717
3,000
4,759
50,447
16,094
23,104
4,208
7,041
68,598
20,875
33,631
4,866
9,226
66,630
18,081
34,100
4,119
10,330
63,966
17,079
32,185
4,250
10,452
60,593
16,720
29,202
4,610
10.061
59,492
15,878
28,933
4,368
10,313
61,203
17,040
29,893
4,361
9,909
61,597
17,819
30,050
4,204
9,524
63,415
18,781
30,289
3,663
10,682
106 Other liabilities..........................................
1,584
1,857
2,660
2,960
2,896
2,808
3,015
2,952
2,935
2,879
107 Total payable in U.S. dollars....................
74,463
87,014
103,460
124,103
118,576
115,166
115,121
119,574
119,214
120,714
1. In May 1978 the exemption level for branches required to report was increased,
which reduced the number of reporting branches.
2. In May 1978 a broader category of claims on foreign public borrowers, in-
eluding corporations that are majority owned by foreign governments, replaced
the previous, more narrowly defined claims on foreign official institutions.
A56
3.14
International Statistics □ May 1981
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1980
Item
1978'
1 Total1...........................................................................
4
5
6
By type
Liabilities reported by banks in the United States2 .
U.S. Treasury bills and certificates3 ..........................
U.S. Treasury bonds and notes
M arketable..................................................................
Nonmarketable4 ........................................................
U.S. securities other than U.S. Treasury securities5
1
8
9
10
11
12
By area
Western Europe1............................................................
C a n a d a ............................................................................
Latin America and C arib b ean ....................................
A sia..................................................................................
A fric a ..............................................................................
Other countries6 ............................................................
2
3
1979 r
S ept.'
O ct.'
N ov.'
D ec.'
Jan.
Feb.P
Mar . p
162,625
149,546
164,402
156,894
157,376
163,212
164,402
162,778
162,298
169,687
23,326
67,671
30,540
47,666
30,381
56,243
30,841
49,361
28,734
50,392
29,546
55,104
30,381
56,243
27,008
56,522
24,778
56,829
27,330
60,306
35,894
20,970
14,764
37,590
17,387
16,363
41,431
14,654
21,693
40,801
15,254
20,637
41,465
15,254
21,531
41,765
15,254
21,543
41,431
14,654
21,693
42,295
14,654
22,299
43,699
14,494
22,498
44,784
14,294
22,973
93,089
2,486
5,046
58,854
2,408
742
85,633
1,898
6,291
52,827
2,412
485
81,592
1,562
5,688
70,608
4,123
829
76,967
1,901
6,606
67,671
3,232
517
75,989
1,670
6,008
69,114
3,520
1,077
80,884
1,393
5,722
70,097
3,866
1,250
81,592
1,562
5,688
70,608
4,123
829
80,434
1,174
5,456
70,557
3,973
1,184
78,334
1,089
5,242
72,582
3,948
1,103
79,974
1,437
6,367
76,669
4,089
1,151
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial
paper, negotiable time certificates of deposit, and borrowings under repurchase
agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes bonds
and notes payable in foreign currencies.
3.15
1981
1980
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
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.
N o te.
LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1979
Item
1977
Dec.
1 Banks’ own liabilities....................................................................................
2 Banks’ own claims1........................................................................................
3
D eposits......................................................................................................
4
Other claims................................................................................................
5 Claims of banks’ domestic customers2 ......................................................
925
2,356
941
1,415
1. Includes claims of banks’ domestic customers through March 1978.
2. Assets owned by customers of the reporting bank located in the United States
that represent claims on foreigners held by reporting banks for the accounts of
their domestic customers.
1980
1978
2,406'
3,671
1,795
1,876
358
N o te.
thorities.
1,918'
2,419
994
1,425
580
Mar.
2,403'
2,772
1,212
1,560
1,058
Ju n e'
2,739
2,874
1,090
1,784
798
Sept.'
2,754
3,203
1,169
2,035
595
D ec.'
3,748
4,206
2,507
1,699
962
Data on claims exclude foreign currencies held by U.S. monetary au-
Bank-Reported Data
3.16
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
A57
Reported by Banks in the United States
Millions o f dollars, end of period
1980
Holder and type of liability
1 All foreigners........................................................
1977
1981
1979
1978
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
M ar.p
126,168
166,842'
187,521'
191,149'
196,030'
204,792'
205,295
202,359'
201,174
203,557
18,996
11,521
78,661r
19,218
12,427r
9,705'
37,311'
117,196'
23,303'
13,623'
16,453'
63,817'
119,117'
22,344'
14,104'
18,112'
64,557'
121,437'
22,460'
14,113'
17,181'
67,683'
125,048'
22,847
14,647'
17,097'
70,458'
124,789
23,462
15,076
17,581
68,670
122,857'
22,149
15,898'
14,685'
70,125'
121,504
23,301
15,762
13,493
68,949
120,293
21,333
16,230
16,128
66,602
88,181'
68,202
70,325
48,573
73,032'
50,731
74,594'
51,990
79,743
56,484
80,506
57,595
79,501'
57,673'
79,669
58,442
83,263
62,074
17,472'
2,507'
19,396'
2,356'
19,783'
2,517'
20,002'
2,601'
20,624
2,635
20,079
2,832
19,050'
2,778'
18,269
2,959
18,259
2,930
3,274
2,607
2,356
2,549
2,734
2,476
2,342
1,961
2,003
1,859
231
139
906
330
84
492
714
260
151
303
476
141
100
235
352
115
95
143
383
187
92
104
442
146
85
211
419
212
71
137
317
186
76
54
293
126
67
100
706
1,701
201
1,643
102
2,073
316
2,382
581
2,093
337
1,900
254
1,542
88
1,687
368
1,566
333
1,499
1
1,538
2
1,757
0
1,800
0
1,756
0
1,646
0
1,453
0
1,319
0
1233
0
65,822
90,742'
78,206'
80,203'
79,127'
84,650'
86,624
83,530'
81,607
87,636
3,528
1,797
12,165'
3,390
2,560r
6,215'
18,292'
4,671'
3,050'
10,571'
18,466'
4,229'
3,576'
10,661'
16,101'
3,406
3,355'
9,341'
16,842'
3,553
3,588'
9,700'
17,826
3,771
3,612
10,443
15,222
3,869
3,343
8,010
13,932
3,579
2,992
7,361
16,196
3,339
2,920
9,937
78,577
67,415
59,914
47,666
61,736'
49,361
63,025
50,392
67,808
55,104
68,798
56,243
68,308'
56,522
67,674
56,829
71,440
60,306
10,992
170
12,196
52
12,312'
63
12,577'
55'
12,648
56
12,501
54
11,756'
30
10,813
32
10,962
173
57,423'
88,316'
90,341'
95,296'
97,812'
96,415
96,659'
96,694
92,956
52,626'
15,315'
11,257
1,429'
2,629
83,299'
19,482'
13,285'
1,667'
4,530'
85,093'
20,536'
12,989'
1,408'
6,139'
89,931'
22,248'
13,843
1,718'
6,686'
91,932'
21,474'
13,714
1,782'
5,978
90,456
21,786
14,188
1,703
5,895
90,594'
20,469
12,889
1,857
5,723
90,302
21,354
14,289
1,818
5,247
86,564
19,961
12,606
2,324
5,032
Own foreign offices3........................................
37,311'
63,817'
64,557'
67,683'
70,458'
68,670
70,125'
68,949
66,602
36 Banks’ custody liabilities4 ..................................
37
U.S. Treasury bills and certificates..............
38 Other negotiable and readily transferable
instruments6 ..............................................
39 O ther..................................................................
4,797'
300
5,017'
422
5,248'
361
5,365
515
5,880
529
5,959
623
6,065'
631'
6,392
795
6,392
826
2,425
2,072'
2,415'
2,179'
2,533
2,354'
2,417
2,434
2,883
2,467
2,748
2,588
2,856
2,578
2,850
2,747
2,918
2,648
2 Banks’ own liabilities..........................................
3 Demand deposits..............................................
4 Time deposits1..................................................
5 Other2 ................................................................
6 Own foreign offices3........................................
7 Banks’ custody liabilities4 ..................................
8 U.S. Treasury bills and certificates5 ............
9
O ther negotiable and readily transferable
instruments6 ..............................................
10 O ther..................................................................
11 Nonmonetary international and regional
organizations7................................................
12 Banks’ own liabilities..........................................
13 Demand deposits..............................................
14 Time deposits1..................................................
15 Other2 ................................................................
16 Banks’ custody liabilities4 ..................................
17 U.S. Treasury bills and certificates..............
18 O ther negotiable and readily transferable
instruments6 ..............................................
19 O ther..................................................................
20 Official institutions8 ............................................
21 Banks’ own liabilities..........................................
22
Demand deposits..............................................
23 Time deposits1..................................................
24 Other2 ................................................................
25 Banks’ custody liabilities4 ..................................
26 U.S. Treasury bills and certificates5 ............
27
Other negotiable and readily transferable
instruments6..............................................
28
O ther..................................................................
29 Banks9....................................................................
30 Banks’ own liabilities..........................................
31 Unaffiliated foreign banks..............................
32
Demand deposits..........................................
33
Time deposits1..............................................
34
Other2 ............................................................
35
40 Other foreigners..................................................
41 Banks’ own liabilities..........................................
42 Demand deposits..............................................
43 Time deposits....................................................
44 Other2 ................................................................
45 Banks’ custody liabilities4 ..................................
46 U.S. Treasury bills and certificates..............
47 Other negotiable and readily transferable
instruments6 ..............................................
48 O ther..................................................................
49 M emo : Negotiable time certificates of deposit
in custody for foreigners............................
48,906
47,820
42,335
10,933
2,040
141
14,736
16,070
18,642
19,056'
18,874
19,854'
19,914
20,209'
20,869
21,106
4,304
7,546
12,964'
4,242
8,353
368'
14,891'
5,087
8,755
1,048'
15,081'
4,986'
9,020'
1,076'
15,052
5,096
8,945
1,011
15,892'
5,393
9,184'
1,315
16,065
5,356
9,676
1,033
16,623
5,179
10,628'
815'
16,952
5,246
10,875
831
17,240
5,263
10,919
1,058
240
3,106'
285
3,751'
382
3,975
693
3,822
502
3,962
513
3,849
474
3,586
432
3,917
451
3,865
609
2,557'
264
3,247'
123
3,181
100
3,208
112
3,337
112
3,185
190
2,985
170
3,287
180
3,146
110
10,984'
10,729'
10,799
10,553
10,745
10,267
9,868
9,801
11,007
1. Excludes negotiable time certificates of deposit, which are included in “Other
negotiable and readily transferable instruments.” Data for time deposits before
April 1978 represent short-term only.
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and foreign sub
sidiaries consolidated in “Consolidated Report of Condition” filed with bank reg
ulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign
banks: principally amounts due to head office or parent foreign bank, and foreign
branches, agencies or wholly owned subsidiaries of head office or parent foreign
bank.
4. Financial claims on residents of the United States, other than long-term se
curities, held by or through reporting banks.
5. Includes nonmarketable certificates of indebtedness and Treasury bills issued
to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time cer
tificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments and the Bank for
International Settlements.
9. Excludes central banks, which are included in “Official institutions.”
A58
3.16
International Statistics □ May 1981
Continued
1980
Area and country
1977
1978
1981
1979
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.P
1 T otal................................................................................
126,168
166,842'
187,521'
192,149'
196,030'
204,792'
205,295
202,359'
201,174
203,557
2 Foreign countries............................................................
122,893
164,235 r
185,164'
189,600'
193,296'
202,315'
202,953
200,398'
199,170
201,697
3 E u ro p e ............................................................................
4
A u stria ........................................................................
5 Belgium-Luxembourg................................................
6 Denmark......................................................................
7 F in lan d ........................................................................
8 France ..........................................................................
9
Germany......................................................................
10 Greece..........................................................................
11 Italy ..............................................................................
12 N etherlands................................................................
13 N orw ay........................................................................
14 P o rtu g a l......................................................................
15 S pain............................................................................
16 Sweden ........................................................................
17 Switzerland..................................................................
18 Turkey..........................................................................
19 United Kingdom ........................................................
20 Yugoslavia..................................................................
21
Other Western Europe1............................................
22
U .S.S.R........................................................................
23
Other Eastern Europe2 ............................................
60,295
318
2,531
770
323
5,269
7,239
603
6,857
2,869
944
273
619
2,712
12,343
130
14,125
232
1,804
98
236
85,172'
513
2,550
1,946
346
9,214
17,283'
826
7,739
2,402
1,271
330
870
3,121
18,225
157
14,272'
254
3,440
82
330
90,952'
413
2,375
1,092
398
10,433
12,935
635
7,782
2,337
1,267
557
1,259
2,005
17,954
120
24,700'
266
4,070
52
302
83,513'
432
3,696
528
311
12,332
7,854
591
5,969
2,540
1,074
571
1,321
1,826
13,524
237
22,830'
169
7,275'
39
392
83,970'
460
3,322
493
307
11,654
7,557
643
6,796
2,555
1,381
491
1,520
1,813
13,695
171
23,791'
203
6,865'
33.
220
90,682'
511'
3,696
586
363
12,374'
9,168'
711
7,308
2,783'
1,444
437
1,379
1,807'
16,574
257
24,439'
225
6,140'
64
416
90,897
523
4,019
497
455
12,125
9,973
670
7,572
2,441
1,344
374
1,500
1,737
16,689
242
22,680
681
6,939
68
370
89,701'
554
4,062
420
264
12,168'
10,336
524
6,743
2,568
899
370
1,416
1,365
16,631'
203
24,209'
296
6,225
46
401
89,216
551
4,783
432
355
12,496
9,297
562
5,988
2,541
1,037
358
1,388
2,078
16,636
231
24,382
269
5,385
84
364
91,399
522
4,729
463
332
12,972
12,320
593
3,456
2,323
1,575
356
1,631
2,406
16,940
235
24,666
202
5,280
47
352
24 Canada ............................................................................
4,607
6,969
7,379
10,337'
10,039'
9,856'
10,031
9,802
9,131
8,624
25 Latin America and C arib b ean ....................................
26 A rgentina....................................................................
27 Baham as......................................................................
28 Berm uda......................................................................
29 Brazil............................................................................
30 British West Indies....................................................
31
C h ile ............................................................................
32
C olom bia....................................................................
33
C u b a ............................................................................
34 Ecuador ......................................................................
Guatemala3 .........................................................
35
36 Jamaica3 ......................................................................
37 M ex ic o ........................................................................
38 Netherlands Antilles..................................................
39 Panam a........................................................................
40 P eru ..............................................................................
41
Uruguay ......................................................................
42 Venezuela....................................................................
43
Other Latin America and C a rib b e a n ....................
23,670
1,416
3,596
321
1,396
3,998
360
1,221
6
330
2,876
196
2,331
287
243
2,929
2,167
31,638'
1,484
6,752
428
1,125
5,974'
398
1,756
13
322
416
52
3,467
308
2,967
363
231
3,821
1,760
49,686'
1,582
15,255
430
1,005
11,138'
468
2,617
13
425
414
76
4,185
499
4,483
383
202
4,192
2,318
48,945'
1,875
14,096'
677
1,222'
11,392'
431
2,916
5
381
373
101
4,226
360
3,894
355
199
4,405
2,035'
52,501
1,996
17,567
595
1,342
12,058'
448
3,037
5
387
365
85
4,575
393
3,595
380
220
3,659
1,793'
53,308'
1,996
16,803
555
1,248
12,637'
456
2,962
6
437
359
78'
4,580'
568
4,575
345
244
3,662'
1,796'
53,170
2,132
16,381'
670
1,216
12,766
460
3,077
6
371
367
97
4,547
413
4,718
403
254
3,170
2,123
53,229'
1,857
16,164
475
1,339
12,798'
501
3,085'
6
389
428
112
4,595'
599
4,460
401
290
3,794
1,936
52,215
1,998
15,645
804
1,266
12,144
431
3,087
7
449
461
101
4,601
523
4,194
447
266
3,925
1,869
50,853
1,917
14,039
921
1,149
11,576
549
2,973
6
516
446
94
4,908
436
4,295
344
306
4,220
2,159
44 A sia..................................................................................
China
Mainland..................................................................
45
46
T a iw a n ....................................................................
47
Hong Kong..................................................................
48
I n d ia ............................................................................
49
Indonesia....................................................................
50
Israel............................................................................
Japan............................................................................
51
52
K o re a ..........................................................................
53
Philippines..................................................................
54 Thailand......................................................................
55
Middle-East oil-exporting countries4......................
56 Other A sia ..................................................................
30,488
36,492
33,005'
42,009'
41,056'
41,999
42,420
41,649
42,724
44,742
53
1,013
1,094
961
410
559
14,616
602
687
264
8,979
1,250
67
502
1,256
790
449
688
21,927
795
644
427
7,534
1,414
49
1,393
1,672
527
504
707
8,907
993
795
277
15,300'
1,879
38
1,595
2,347'
529
827
534
15,434'
1,994
817'
517
15,409
1,968'
46
1,610
2,304'
485
811
530
15,372'
1,809
842'
403
14,611
2,232
62
1,636
2,410
438
715
548
15,720
1,764
803
440
15,214
2,250
49
1,662
2,548
416
730
883
16,281
1,528
919
464
14,453
2,487
55
1,821
2,764
437
1,170
523
17,701
1,498
849
367
12,216
2,249
55
1,733
3,054
604
678
557
17,992
1,485
1,057
404
12,695
2,409
60
1,821
2,421
576
1,063
584
19,367
1,382
1,110
250
13,963
2,143
57 A fric a ..............................................................................
58 Egypt............................................................................
59 M orocco......................................................................
60
South Africa................................................................
Z a ire ............................................................................
61
62
Oil-exporting countries5............................................
63
Other A fric a ..............................................................
2,535
404
66
174
39
1,155
698
2,886
404
32
168
43
1,525
715
3,239
475
33
184
110
1,635
804
3,902
322
32
354
42
2,459
694
4,246
269
57
288
36
2,911
685
4,718'
374
38
326'
34
3,211
735
5,187
485
33
288
57
3,540
783
4,358
313
42
327
48
2,921
707
4,371
496
30
258
58
2,833
697
4,553
333
33
322
28
3,084
753
64 O ther countries..............................................................
65
Australia......................................................................
66 All o th e r......................................................................
1,297
1,140
158
1,076
838
239
904
684
220
894
613
281
1,484
1,190
294
1,752
1,419
333
1,247
950
297
1,658
1,304
354
1,513
1,205
307
1,526
1,287
240
67 Nonmonetary international and regional
organizations..........................................................
In tern atio n al..............................................................
68
69
Latin American regional..........................................
70 Other regional6 ..........................................................
3,274
2,752
278
245
2,607
1,485
808
314
2,356
1,238
806
313
2,549
1,389
837
323
2,734
1,586
841
307
2,476
1,366
801
309
2,342
1,156
890
296
1,961
913
769
279
2,003
995
745
263
1,859
754
768
338
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem
ocratic Republic, Hungary, Poland, and Romania.
3. Included in “Other Latin America and Caribbean” through March 1978.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Asian, African, Middle Eastern, and European regional organizations, except
the Bank for International Settlements, which is included in “Other Western
Europe.”
Bank-Reported Data
3.17
A59
BANKS’ OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
M illions of dollars, end of period
1980
A rea and country
1977
1978
1981
1979
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
M ar./1
1 T o ta l............................................................
90,206
115,545 r
133,943'
161,548'
163,189'
167,525'
172,702
167,338'
167,677
178,769
2 Foreign countries........................................
90,163
115,488'
133,906'
161,510'
163,144'
167,487'
172,624
167,266'
167,597
178,695
3 E u ro p e ........................................................
4 A u stria ....................................................
5 Belgium-Luxembourg............................
6 Denmark..................................................
7 F in la n d ....................................................
8 F rance......................................................
9 Germany..................................................
10 Greece......................................................
11 Italy..........................................................
12 N etherlands............................................
13 Norway....................................................
14 P o rtu g a l..................................................
15 S pain........................................................
16 Sw eden....................................................
17 Switzerland..............................................
18 Turkey......................................................
19 United K ingdom ....................................
20 Yugoslavia..............................................
21
Other Western Europe1........................
22
U .S.S.R ....................................................
23
Other Eastern Europe2 ........................
18,114
65
561
173
172
2,082
644
206
1,334
338
162
175
722
218
564
360
8,964
311
86
413
566
24,201'
140
28,388'
284
1,339
147
202
3,322
1,179
154
1,631
514
276
330
1,051
542
1,165
149
13,795'
611
175
268'
1,254
29,667'
264
1,954
180
184
3,232
1,018
221
2,560
546
248
330
1,106
716
1,337
144
13,015'
682
245
241
1,444'
29,306'
196
1,680
132
253
2,551
987
278
2,842
557
335
341
1,113
763
1,564
123
12,981'
684
226
257
1,443'
32,654'
250
1,946
165
248
3.506
1.506
265
3,063
749
138
393
1,111
633
1.932
149
13,995'
689
234
271
1,413'
32,155
236
1,621
127
460
2,958
948
256
3,364
575
227
331
993
783
1,446
145
14,917
853
179
281
1,457
30,657
249
1,739
129
322
2,716
985
264
3,168
642
294
299
1,131
688
1,753
146
13,175
863
347
249
1,490'
30,843
191
2,140
172
337
3,115
1,047
248
3,107
523
224
240
1,160
733
1,729
155
12,944
859
177
249
1,494
34,010
174
2,568
119
316
3,834
1,074
217
2,982
548
216
247
1,377
868
1,310
235
14,994
871
176
266
1,620
1,200
254
305
3,735
845
164
1,523
677
299
171
1,120
537
1,283
300
10,147'
363
122
360'
657
24 C a n a d a ........................................................
3,355
5,152
4,143
5,072'
4,614
4,542
4,810
4.221
4,874
5,131
25 Latin America and C arib b ean ................
26 A rgentina................................................
27
Baham as........ ..........................................
28 B erm uda..................................................
29 Brazil........................................................
30 British West Indies................................
31
C h ile ........................................................
32 C olom bia................................................
33 Cuba ........................................................
34 Ecuador ..................................................
35
Guatemala3 ............................................
36 Jamaica3 ..................................................
37 M ex ic o ....................................................
38 Netherlands Antilles..............................
39 Panam a....................................................
40 P eru...........................................................
41
U ruguay ..................................................
42 Venezuela................................................
43
Other Latin America and Caribbean .
45,850
1,478
19,858
232
4,629
6,481
675
671
10
517
67,993'
4,389
18,918
496
7,713'
9,818'
1,441
1,614
4
1,025
134
47
9,099
248
6,041'
652
105
4,657'
1,593'
85,935'
5,629
30,440'
216
9,635'
12,019'
1,627
1,493
6
1,111
105
33
11,120'
710
4,461
671
100
4,879
1,681'
87,986'
5,898
30,275
399
10,131'
12,948'
1,721
1,575
3
1,157
112
35
11,745
799
3,972
719
100
4,710
1,689'
89,259'
6,270
29,679
260
9,996'
13,674
1,730
1,582
3
1,157
114
40
12,014
816
4,367
749
105
5,113
1,591
92,992
5,689
29,419
218
10,496
15,663'
1,951
1,752
3
1,190
137
36
12,595
821
4,974
890
137
5,438
1,583'
90,792'
5,642'
28,358
267
10,260
14,546
1,862
1,665
4
4,909
224
1,410
962
80
2,318
1,394
57,565'
2,281
21,555
184
6,251
9,694'
970
1,012
0
705
94
40
5.479
273
3,098
918
52
3,474
1,485'
114
33
12,687
835
5,033
912
111
5,515
1,728
89,523
5,637
28,642
364
9,810
14,333
1,850
1,435
3
1,179
113
41
12,463
655
4,858
877
107
5,514
1,653
95,433
5,674
33,370
347
10,201
14,147
1,878
1,469
3
1,253
208
77
12,436
807
5,522
784
103
5,400
1,756
44 A sia..............................................................
China
45
Mainland..............................................
46
T a iw a n ................................................
47 Hong Kong..............................................
48 In d ia ........................................................
49 Indonesia................................................
50
Israel........................................................
51 Japan........................................................
52 K o re a ......................................................
53 Philippines..............................................
54 T hailand..................................................
55 Middle East oil-exporting countries4. .
56 Other A sia ..............................................
19,236
25,362'
30,730'
37,716'
37,964'
37,956'
39,140'
38,564'
39,127
40,590
10
1,719
543
53
232
584
9,839
2,336
594
633
1,746
947
4
1,499
1.479
54
143
888
12,646'
2,282
680
758
3,125
1,804
35
1,821
1,804
92
131
990
16,911'
3,793'
737
933'
1,548
1,934'
117
2,492
2,243'
84
208
916'
20,666'
5,565'
1,171'
947
1,429'
1,876
126
2,332
2,133'
103
214
1,055
20,614'
5,880'
1,084'
925
1,258
2,240
187
2,382
2,094
125
248
1,125
20,323
5,839'
974
1,538
1,999
195
2,469
2,247
142
245
1,172
21,361
5,697
989
876
1,494
2,252'
225
2,415
2,250
110
280
1,081
21,187
5,904'
840
810
1,435
2,026
186
2,282
2,212
142
306
829
22,314
5,936
745
808
1,443
1,923
201
2,402
2,320
127
288
944
23,715
5,830
605
835
1,486
1,837
57 A fric a ..........................................................
58 Egypt........................................................
59 M orocco..................................................
60 South Africa............................................
61
Z a ire ........................................................
62 Oil-exporting countries5........................
63
O ther........................................................
2,518
119
43
1,066
98
510
682
2,221
107
82
860
164
452
556
1,797
114
103
445
144
391
600
2,029
123
166
535
101
374
729
2,090
159
119
440
123
469
780
1.933
165
146
375
98
402
747
2,377
151
223
370
94
805
734
1,910
175
186
337
96
410
707
1,981
152
115
421
94
425
773
2,496
137
153
534
336
589
746
64 Other countries..........................................
65
Australia..................................................
66 All o th e r..................................................
1,090
905
186
877
111
855
673
182'
1,091
879
213
1,185
942
243
1,143
915
228
1,150'
859
290'
1,122
1,250
868
381
1.035
870
164
67 Nonmonetary international and regional
organizations6 ....................................
43
56
36'
79
74
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem
ocratic Republic, Hungary, Poland, and Romania.
3. Included in “Other Latin America and Caribbean” through March 1978.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
1,122
38'
78
1.222
827
295
72'
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in “Other
Western Europe.”
N ote . Data for period prior to April 1978 include claims of banks’ domestic
customers on foreigners.
A60
3.18
International Statistics □ May 1981
BANKS’ OWN AND DOMESTIC CUSTOMERS’ CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period
1980
Type of claim
1977
1981
1978'
Sept.
1 T otal..........................................................................
2
3
4
5
6
7
8
90,206
Banks’ own claims on foreigners..........................
Foreign public borrowers........................................
Own foreign offices1................................................
Unaffiliated foreign banks......................................
D eposits................................................................
O ther......................................................................
All other foreigners................................................
9 Claims of banks’ domestic customers2 ................
10 D eposits....................................................................
11 Negotiable and readily transferable instruments3
12 Outstanding collections and other claims4 ..........
6,176
13 Memo: Customer liability on acceptances..........
Dollar deposits in banks abroad, reported by non
banking business enterprises in the United
States5....................................................................
126,787
154,030
187,038'
115,545
10,346
41,605
40,483
5,428
35,054
23,111
133,943
15,937
47,428
40,927
6,274
34,654
29,650
161,548'
19,311'
61,880'
45,963'
7,211'
38,752'
34,395'
11,243
480
5,396
5,366
20,088
955
13,100
6,032
25,490
1,081
15,260
9,148
26,106
885
15,574
9,648
15,030
18,021
23,433'
22,714'
13,162
21,578
22,075
1. U.S. banks: includes amounts due from own foreign branches and foreign
subsidiaries consolidated in “Consolidated Report of Condition” filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries o f foreign
banks: principally amounts due from head office or parent foreign bank, and foreign
branches, agencies, or wholly owned subsidiaries of head office or parent foreign
bank.
2. Assets owned by customers of the reporting bank located in the United States
that represent claims on foreigners held by reporting banks for the account of their
domestic customers.
3. Principally negotiable time certificates of deposit and bankers acceptances.
3.19
J a n .'
Feb.'
167,338
20,969
64,002
46,350
7,261
39,089
36,017
167,677
20,130
64,785
46,025
7,238
38,788
36,737
198,807
163,189
19,478
62,087
46,576
7,116
39,460
35,048
22,696
167,525
21,158
62,507
49,066
7,579
41,488
34,794
24,516
172,702
20,944
65,084
50,215
8,254
41,962
36,459'
21,396
25,407
178,769
20,785
73,716
46,650
7,295
39,355
37
30,585
4. Data for March 1978 and for period prior to that are outstanding collections
only.
5. Includes demand and time deposits and negotiable and nonnegotiable certif
icates of deposit denominated in U.S. dollars issued by banks abroad. For descrip
tion of changes in data reported by nonbanks, see July 1979 B u ll e t i n , p. 550.
N o te . Beginning April 1978, data for banks’ own claims are given on a monthly
basis, but the data for claims of banks’ own domestic customers are available on
a quarterly basis only.
BANKS’ OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
M illions of dollars, end of period
1979
1978
1980
Maturity; by borrower and area
Dec.
Sept.
Dec.
Mar.
June
Sept.
Dec.
1 T o ta l................................................................................................................
73,635 '
87,538'
86,181'
85,452 r
93,260'
99,022'
106,857'
By borrower
Maturity of 1 year or less1............................................................................
Foreign public borrowers..........................................................................
All other foreigners..................................................................................
Maturity of over 1 year1 ..............................................................................
Foreign public borrowers..........................................................................
All other foreigners..................................................................................
58,345'
4,633
53,712'
15,289
5,395'
9,894'
68,362'
6,159'
62,203'
19,176'
7,787'
11,388'
65,152'
7,233'
57,919'
21,030'
8,371'
12,659'
64,109'
6,812'
57,297'
21,343'
8,593'
12,750'
71,938'
7,227'
64,711'
21,322'
8,673'
12,649'
76,231'
8,935'
67,296'
22,791'
9,722'
13,069'
82,665'
10,036'
72,628'
24,193'
10,152'
14,041'
15,169'
2,670
20,895'
17,545'
1,496
569
16,802'
2,471
25,686'
21,478'
1,401
524
15,235'
1,777
24,928'
21,641'
1,077'
493
13,848'
1,812'
23,042'
23,737'
1,043
627
17,215'
2,047'
24,460'
26,162'
1,330
724
16,940'
2,166
28,097'
26,876'
1,401
751
18,762'
2,723'
32,034'
26,748'
1,757'
640'
3,142
1,426
8,464
1,407
637
214
3,653
1,364
11,769'
1,578
625'
188
4,160'
1,317
12,814'
1,911
655'
173'
4,236'
1,214
13,388'
1,728
620
157'
4,033
1,199
13,887'
1,477'
576
150'
4,705'
1,188
14,187'
2,014'
567
130'
5,118'
1,448'
15,075'
1,865'
507'
179'
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
By area
Maturity of 1 year or less1
E u ro p e ........................................................................................................
Canada ........................................................................................................
Latin America and C arib b ean ................................................................
A sia..............................................................................................................
A fric a ..........................................................................................................
All other2 ....................................................................................................
Maturity of over 1 year1
E u r o p e ........................................................................................................
Canada ........................................................................................................
Latin America and C arib b ean ................................................................
A sia..............................................................................................................
A fric a ..........................................................................................................
All other2 ....................................................................................................
1. Remaining time to maturity.
2. Includes nonmonetary international and regional organizations.
Bank-Reported Data
3.20
A61
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1
Billions of dollars, end of period
1979
Area or country
1976
1977
1980
19782
Mar.
June
Sept.
Dec.
Mar.
June
Sept.
D ec.P
1 T o ta l........................................................................................................
206.8
240.0
266.2
263.9
275.6
293.9
303.8
308.0
328.2
338.6
352.1
2 G-10 countries and Switzerland..........................................................
3 Belgium-Luxembourg........................................................................
4 France ..................................................................................................
5 Germany..............................................................................................
6
Italy......................................................................................................
7 N etherlands........................................................................................
8 Sweden ................................................................................................
9 Switzerland..........................................................................................
10 United K ingdom ................................................................................
11 Canada ................................................................................................
12 Japan....................................................................................................
100.3
6.1
10.0
8.7
5.8
2.8
1.2
3.0
41.7
5.1
15.9
116.4
8.4
11.0
9.6
6.5
3.5
1.9
3.6
46.5
6.4
18.8
124.7
9.0
12.2
11.3
6.7
4.4
2.1
5.3
47.3
6.0
20.6
119.0
9.4
11.7
10.5
5.7
3.9
2.0
4.5
46.4
5.9
19.0
125.3
9.7
12.7
10.8
6.1
4.0
2.0
4.7
50.3
5.5
19.5
135.7
10.7
12.0
12.8
6.1
4.7
2.3
5.0
53.7
6.0
22.3
138.4
11.1
11.7
12.2
6.4
4.8
2.4
4.7
56.4
6.3
22.4
140.8
10.8
12.0
11.4
6.2
4.3
2.4
4.3
57.6
6.8
25.1
154.3
13.1
14.0
12.7
6.9
4.5
2.7
3.3
64.4
7.2
25.5
158.9
13.5
13.9
12.9
7.2
4.4
2.8
3.4
66.7
7.9
26.1
161.7
12.9
14.0
11.5
8.2
4.4
2.9
4.0
68.5
8.4
26.8
13 Other developed c o u n tries..................................................................
14 A u stria ................................................................................................
15 Denmark..............................................................................................
16 F inland................................................................................................
17 Greece..................................................................................................
18 Norway................................................................................................
19 P o rtu g al..............................................................................................
20
S pain....................................................................................................
21
Turkey..................................................................................................
22
Other Western E u r o p e ....................................................................
23
South Africa........................................................................................
24
A ustralia..............................................................................................
15.0
1.2
1.0
1.1
1.7
1.5
.4
2.8
1.3
.7
2.2
1.2
18.6
1.3
1.6
1.2
2.2
1.9
.6
3.6
1.5
.9
2.4
1.4
19.4
1.7
2.0
1.2
2.3
2.1
.6
3.5
1.5
1.3
2.0
1.4
18.2
1.7
2.0
1.2
2.3
2.1
.6
3.0
1.4
1.1
1.7
1.3
18.2
1.8
1.9
1.1
2.2
2.1
.5
3.0
1.4
.9
1.8
1.4
19.7
2.0
2.0
1.2
2.3
2.3
.7
3.3
1.4
1.5
1.7
1.3
19.9
2.0
2.2
1.2
2.4
2.3
.7
3.5
1.4
1.4
1.3
1.3
18.8
1.7
2.1
1.1
2.4
2.4
.6
3.5
1.4
1.4
1.1
1.2
20.3
1.8
2.2
1.3
2.5
2.4
.6
3.9
1.4
1.6
1.5
1.2
20.6
1.8
2.2
1.2
2.6
2.4
.7
4.2
1.3
1.7
1.2
1.2
21.2
1.9
2.2
1.4
2.8
2.6
.6
4.0
1.5
1.8
1.1
1.3
25 OPEC countries3 ..................................................................................
26 Ecuador ..............................................................................................
27
Venezuela............................................................................................
28
In donesia............................................................................................
29
Middle East co u n tries......................................................................
30 African countries................................................................................
12.6
.7
4.1
2.2
4.2
1.4
17.6
1.1
5.5
2.2
6.9
1.9
22.7
1.6
7.2
2.0
9.5
2.5
22.6
1.5
7.2
1.9
9.4
2.6
22.7
1.6
7.6
1.9
9.0
2.6
23.4
1.6
7.9
1.9
9.2
2.8
22.9
1.7
8.7
1.9
8.0
2.6
21.8
1.8
7.9
1.9
7.8
2.5
20.9
1.8
7.9
1.9
6.9
2.5
21.4
1.9
8.5
1.9
6.7
2.4
22.8
2.1
9.1
1.8
7.0
2.8
31 Non-OPEC developing countries........................................................
44.2
48.7
52.6
53.9
55.9
58.8
62.8
63.7
67.4
72.8
76.9
32
33
34
35
36
37
38
Latin America
A rgentina............................................................................................
Brazil....................................................................................................
C h ile ....................................................................................................
C olom bia............................................................................................
M exico................................................................................................
P eru......................................................................................................
Other Latin A m erica........................................................................
1.9
11.1
.8
1.3
11.7
1.8
2.8
2.9
12.7
.9
1.3
11.9
1.9
2.6
3.0
14.9
1.6
1.4
10.8
1.7
3.6
3.1
14.9
1.7
1.5
10.9
1.6
3.5
3.5
15.1
1.8
1.5
10.7
1.4
3.3
4.1
15.1
2.2
1.7
11.4
1.4
3.6
5.0
15.2
2.5
2.2
12.0
1.5
3.7
5.5
15.0
2.5
2.1
12.1
1.3
3.6
5.6
15.3
2.7
2.2
13.6
1.4
3.6
7.6
15.8
3.2
2.4
14.4
1.5
3.9
7.9
16.2
3.5
2.7
15.9
1.8
3.9
39
40
41
42
43
44
45
46
47
Asia
China
Mainland..........................................................................................
T a iw an ............................................................................................
I n d ia ....................................................................................................
Israel....................................................................................................
Korea (S o u th )....................................................................................
Malaysia4 ............................................................................................
Philippines..........................................................................................
T hailand..............................................................................................
Other A sia..........................................................................................
.0
2.4
.2
1.0
3.1
.5
2.2
.7
.5
.0
3.1
.1
3.1
.1
.1
3.5
.1
3.4
.2
1.3
5.5
.9
4.2
1.6
.4
.1
3.6
.2
.9
6.5
.8
4.4
1.4
.4
.1
3.8
.2
1.2
7.1
.9
4.6
1.5
.5
.1
4.1
2.5
1.1
.4
.0
2.9
.2
1.0
3.9
.6
2.81.2
.2
.2
4.2
.3
1.5
7.1
1.0
5.0
1.4
.6
48
49
50
51
Africa
Egypt....................................................................................................
M orocco..............................................................................................
Z a ire ....................................................................................................
Other Africa5 ....................................................................................
.4
.3
.2
1.2
.3
.5
.3
.7
.4
.6
.2
1.4
.5
.6
.2
1.4
.7
.5
.2
1.5
.6
.5
.2
1.6
.6
.6
.2
1.7
.7
.5
.2
1.8
.7
.5
.2
1.8
.7
.6
.2
2.0
.8
.7
.2
2.0
52 Eastern E u rope......................................................................................
53
U .S.S.R................................................................................................
54 Y ugoslavia..........................................................................................
O ther....................................................................................................
55
5.2
1.5
.8
2.9
6.3
1.6
1.1
3.7
6.9
1.3
1.5
4.1
6.7
1.1
1.6
4.0
6.7
.9
1.7
4.1
7.2
.9
1.8
4.6
7.3
.7
1.8
4.8
7.3
.6
1.9
4.9
7.2
.5
2.1
4.5
7.3
.5
2.1
4.7
7.5
.4
2.3
4.7
56 Offshore banking centers......................................................................
57 B aham as..............................................................................................
58 B erm uda..............................................................................................
59 Cayman Islands and other British West Indies............................
60 Netherlands Antilles..........................................................................
61
Panama6 ..............................................................................................
Lebanon ..............................................................................................
62
63
Hong Kong..........................................................................................
64
Singapore............................................................................................
65
O thers7................................................................................................
24.7
10.1
.5
3.8
.6
3.0
.1
2.2
4.4
.0
26.1
9.9
.6
3.7
.7
3.1
.2
3.7
3.7
.5
30.9
10.4
.7
7.4
.8
3.0
.1
4.2
3.9
.5
33.7
12.3
.6
7.1
.8
3.4
.1
4.8
4.2
.4
37.0
14.4
.7
7.4
1.0
3.8
.1
4.9
4.2
.4
38.6
13.0
.7
9.5
1.1
3.4
.2
5.5
4.9
.4
40.4
13.7
.8
9.4
1.2
4.3
.2
6.0
4.5
.4
42.6
14.0
.6
11.3
.9
4.9
.2
5.7
4.7
.4
43.9
13.6
.6
9.5
1.2
5.6
.2
6.9
5.9
.4
44.1
12.9
.6
10.0
1.3
5.6
.2
7.4
5.6
.4
47.1
13.3
.6
10.3
2.0
6.3
.2
8.1
5.9
.3
66 Miscellaneous and unallocated8 ..........................................................
5.0
5.3
9.1
9.5
9.9
10.6
11.7
13.1
14.3
13.7
15.1
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 ad
justed to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.13 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.17 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches). However,
see also footnote 2.
2. Beginning with data for June 1978, the claims of the U.S. offices
in this table include only banks’ own claims payable in dollars. For earlier dates
L4
LI
7.3
'
the claims of the U.S. offices also include customer claims and foreign currency
claims (amounting in June 1978 to $10 billion).
3. In addition to the Organization of Petroleum Exporting Countries shown
individually, this group includes other members of OPEC (Algeria, Gabon, Iran,
Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as
well as Bahrain and Oman (not formally members of OPEC).
4. Foreign branch claims only through December 1976.
5. Excludes Liberia.
6. Includes Canal Zone beginning December 1979.
7. Foreign branch claims only.
8. Includes New Zealand, Liberia, and international and regional organizations.
A62
3.21
International Statistics □ May 1981
MARKETABLE U.S. TREASURY BONDS AND NOTES
Foreign Holdings and Transactions
Millions of dollars
1981
Country or area
1979
1980
1981
1980
JanMar.P
Sept.
Holdings (end of period)!
1 Estimated total2........................................
51,344
57,418'
55,874'
56,558'
57,222'
57,418
60,277
61,760
2 Foreign countries2......................................
45,915
52,831'
51,178'
52,081'
52,872'
52,831
55,655
56,840
3 Europe2........................................................
4 Belgium-Luxembourg............................
5 Germany2 ................................................
6 N etherlands............................................
7
Sw eden....................................................
8 Switzerland2 ............................................
9 United Kingdom ....................................
10 Other Western E u r o p e ........................
11 Eastern E u ro p e ......................................
12 C an a d a........................................................
24,824
60
14,056
1,466
647
1,868
6,236
491
0
232
24,337'
77
12,335
1,884
595
1,485
7,183'
111
0
449
25,019'
91
13,110
1,640
611
1,566
7,459'
542
0
480
24,786'
78
12,823
1,658
607
1,517
7,541'
562
0
503
24,711'
74
12,758
1,777
614
1,489
7,414'
584
0
532
25.466
88
12,915
1,944
535
1,524
7,745
714
0
490
25,235
106
12,340
1,965
566
1,527
7,892
839
0
478
Latin America and C arib b ean ................
Venezuela................................................
Other Latin America and Caribbean .
Netherlands Antilles..............................
A sia..............................................................
Japan........................................................
A fric a ..........................................................
All o th e r......................................................
466
103
200
163
19,805
11,175
591
-3
999
292
285
421
26,112
9,479
920
14
768
302
241
225
24,294'
9,444
617
0
768
292
255
221
25,333'
9,503
685
5
942
292
278
372
25,968'
9,547
715
4
1,074
292
341
441
27.467
9,543
1,139
18
1,151
292
339
519
28,827
9,543
1,140
9
21 Nonmonetary international and regional
organizations......................................
5,429
4,587
4,696
4,477 >
4,350
4,622
4,920
22
23
5,388
37
4,548
36
4,632
65
4,430
44
4,302
44
4,586
36
4,878
36
1,736
1,404
332
1,185
1,084
100
13
14
15
16
17
18
19
20
In tern atio n al..........................................
Latin American regional......................
4,548
36
Transactions (net purchases, or sales ( - ) during period)
24 Total2............................................................
6,397
6,075'
4,341
1,752
25 Foreign countries2......................................
26
Official institutions................................
27
Other foreign2 ........................................
6,099
1,697
4,403
6,916'
3,840'
3,076'
4,009
3,354
655
1,181
998
183
903
664
240
791'
301'
490
-4 1
-3 3 6
295
1,088
865
223
28 Nonmonetary international and regional
organizations......................................
301
-8 4 3 '
333
571
-222
-1 2 6 '
237
-5 3
Memo: Oil-exporting countries
29 Middle East3 ..............................................
30 Africa4..........................................................
-1,014
-1 0 0
2,762
220
601
25
990
68
561
29'
358
205
300
51
7,672
328
1. Estimated official and private holdings of marketable U.S. Treasury securities
with an original maturity of more than 1 year. Data are based on a Benchmark
survey of holdings as of Jan. 31, 1971, and monthly transactions reports. Excludes
nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign
countries.
3.22
1,035
295
1,139
169
1,322
0
2. Beginning December 1978, includes U.S. Treasury notes publicly issued to
private foreign residents denominated in foreign currencies.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Q atar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1980
Assets
1978
1979
1981
1980
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.P
1 D ep o sits..........................................................................
367
429
411
368
368
411
573
422
474
475
Assets held in custody
2 U.S. Treasury securitiesi..............................................
3 Earmarked gold2............................................................
117,126
15,463
95,075
15,169
102,417
14,965
98,121
14,986
102,786
14,968
102,417
14,965
104,490
14,893
106,389
14,892
111,859
14,883
113,746
14,886
1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
2. The value of earmarked gold increased because of the changes in par value
of the U.S. dollar in May 1972 and in October 1973.
N o te . Excludes deposits and U.S. Treasury securities held for international and
regional organizations. Earmarked gold is gold held for foreign and international
accounts and is not included in the gold stock of the United States,
Investment Transactions
3.23
A63
FOREIGN TRANSACTIONS IN SECURITIES
M illions of dollars
1980
1981
Transactions, and area or country
1979
1981
1980'
Jan Mar.P
Sept.
Oct.
Nov.
Mar.P
Dec.
Jan.
Feb.
4,457
3,588
4,345
3,701'
3,422
2,798
2,718
2,312
U.S. corporate securities
Stocks
22,781
21,123
40,320
34,962
10,085
8,420
3,569
3,329
3 Net purchases, or sales ( - ) ..........................................
1,658
5,358
1,665
241
519
869
644'
624
406
636
4 Foreign countries............................................................
1,642
5,340
1,643
246
524
867
623'
612
403
628
E u ro p e ............................................................................
France ..........................................................................
Germany......................................................................
N etherlands................................................................
Switzerland..................................................................
United Kingdom ........................................................
Canada ............................................................................
Latin America and C arib b ean ....................................
Middle E a st* ..................................................................
Other A sia ......................................................................
A fric a ..............................................................................
Other countries..............................................................
217
122
-2 2 1
-7 1
-5 1 9
964
552
-1 9
688
211
-1 4
7
3,069
482
186
-3 2 8
308
2,503
865
148
1,206
16
-1
38
1,302
210
73
56
226
707
220
92
42
-1 6
2
2
-8 3
.33
-1 8
-3 8
-1 2 2
153
-2 2
-8 3
410
19
2
4
300
53
35
-2 9
83
172
-6 6
132
126
33
2
-3
633
109
121
-5 8
265
251
263
57
-1 0 9
18
0
5
254'
60'
8'
-1 7
-8 8
300'
247'
-8 '
177
-4 9 '
-2
2'
438
62
24
43
105
178
26
101
63
-1 4
2
-5
257
41
18
2
-2 4
220
91
-2 2
74
-2
0
7
607
107
31
12
146
309
103
14
-9 5
0
-1
0
17 Nonmonetary international and regional
organizations..........................................................
17
18
22
-5
-6
22
12
2
8
18 Foreign purchases..........................................................
19 Foreign s a le s ..................................................................
8,835
7,602
15,425
9,976
4,992
2,918
645
481
1,591'
739
946
826
1,549
817
1 Foreign purchases..........................................................
2 Foreign s a le s ..................................................................
5
6
7
8
9
10
11
12
13
14
15
16
4,438
3,920
2
3,945
3,310
B onds 2
1,193'
902
1,402'
863'
2,041
1,239
20 Net purchases, or sales ( - ) ..........................................
1,233
5,449
2,074
165
852r
291'
121
733
539
802
21 Foreign countries............................................................
1,330
5,514
2,061
214
897 '
295 '
107
706
552
803
22
23
24
25
26
27
28
29
30
31
32
33
626
11
58
-2 0 2
-1 1 8
814
80
109
424
88
1
1
1,576
129
213
-6 5
54
1,257
135
185
3,486
117
5
10
657
-2 9
258
32
37
309
24
52
1,415
-8 3
0
-4
-2 3
-2
4
7
0
-5
12
18
194
14
0
-2
263'
2r
30
8
1
228'
9
7
594
24
0
0
163'
12
13
-7
8
166'
21
11
105
-3
0
-1
-2 6
12
22
17
14
-1 1 3
-7
-5
113
32
0
0
214
4
49
6
22
124
7
-3
492
-1
0
-4
311
-4 2
112
12
12
207
-2
26
201
17
0
0
132
9
97
14
4
-2 2
19
28
723
-9 9
0
0
-9 6
-6 5
13
-4 9
14
27
-1 3
-1
E u ro p e ............................................................................
F rance..........................................................................
Germany......................................................................
N etherlands................................................................
Switzerland..................................................................
United K ingdom ........................................................
C an a d a............................................................................
Latin America and C arib b ean ....................................
Middle E a st* ..................................................................
Other A sia ......................................................................
A fric a ..............................................................................
Other countries..............................................................
34 Nonmonetary international and regional
organizations..........................................................
-4 5
-4
Foreign securities
35 Stocks, net purchases, or sales ( - ) ............................
36 Foreign purchases......................................................
37 Foreign s a le s ..............................................................
-7 8 6
4,615
5,401
-2,084
7,885
9,968
-1 4 0
2,168
2,308
-5 5 8
694
1,253
-3 4 1 '
795'
1,136'
129
927
798
-6 8
721
788
35'
696'
661'
13'
709'
697'
-1 8 7
763
950
38 Bonds, net purchases, or sales ( - ) ............................
39 Foreign purchases......................................................
40 Foreign s a le s ..............................................................
-3,855
12,672
16,527
-8 4 6
17,069
17,915
-3 3 7
4,431
4,768
-8 4
1,231
1,316
-2 0 6
1,651
1,857
92'
1,254'
1,161
274
1,786
1,512
-2 3 7 '
1,142
1,379'
2 9'
1,296'
1,267'
-1 3 0
1,992
2,122
41 Net purchases, or sales ( - ) , of stocks and bonds . . .
-4,641
-2,929
-4 7 7
-6 4 3
-5 4 7 '
221'
206
-2 0 2 '
42'
-3 1 7
42
43
44
45
46
47
48
49
-3,891
-1,646
-2,601
347
44
-6 1
25
-3,806
-9 5 7
-1,948
126
-1,131
24
80
-5 8 2
-1 9 7
-2 9
35
-3 4 3
-3 5
-1 3
-6 8 0
-1 1 0
-3 4 4
7
-2 2 3
-4
-6
-5 6 3 '
126'
-651
-3 5
-1 6
29
-1 6
198'
-3 0
329'
-2 4
-7 3
-1
-3
-1 7 7
-8 6
24
-1 1
-8 4
-1 3
-7
-2 6 1 '
-1 1 6
-4
51
-1 7 7 '
-1 0
24'
80'
7 6'
52'
-1 6 9 '
-8
-3 4 5
-161
-101
-6 8
3
-1 7
-7 5 0
876
105
37
Foreign countries............................................................
E u ro p e ............................................................................
C an a d a............................................................................
Latin America and C arib b ean ....................................
A sia..................................................................................
A fric a ..............................................................................
Other countries..............................................................
Nonmonetary international and regional
organizations..........................................................
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
15
23
383
59
17
29
2. Includes state and local government securities, and securities of U.S. government agencies and corporations. Also includes issues of new debt securities sold
abroad by U.S. corporations organized to finance direct investments abroad.
A64
3.24
International Statistics □ May 1981
LIABILITIES TO UN AFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions of dollars, end of period
1979
Type, and area or country
1980
1979
1978
June
Sept.
Dec.
Mar.
June
S ept.'
1 Total..............................................................................................................
14,869
16,940r
15,510
15,700
16,940r
17,352 r
18,446 r
18,454
2 Payable in dollars........................................................................................
3 Payable in foreign currencies2 ..................................................................
11,506
3,363
13,922'
3,018
12,623
2,888
12,692
3,008
13,922'
3,018
14,417'
2,936'
15,080'
3,366
15,214
3,239
By type
4 Financial liabilities......................................................................................
5 Payable in dollars....................................................................................
6
Payable in foreign currencies................................................................
6,295
3,831
2,464
7,302'
5,092'
2,210
6,041
3,867
2,173
6,131
3,877
2,254
7,302'
5,092'
2,210
7,781'
5,597'
2,184
8,281'
5,725'
2,556
8,125
5,707
2,418
7 Commercial liabilities................................................................................
8 Trade payables........................................................................................
9
Advance receipts and other liabilities..................................................
8,574
4,008
4,566
9,639
4,380
5,258
9,470
4,302
5,168
9,568
4,051
5,518
9,639
4,380
5,258
9,571
4,138
5,433
10,165
4,265
5,899
10,328
4,369
5,960
10
11
Payable in dollars....................................................................................
Payable in foreign currencies................................................................
7,675
899
8,830
808
8,755
715
8,815
754
8,830
808
8,819
752
9,355
810
9,507
821
12
13
14
15
16
17
18
By area or country
Financial liabilities
E u ro p e......................................................................................................
Belgium-Luxembourg........................................................................
France....................................................................................................
G erm an y ..............................................................................................
N etherlands..........................................................................................
Sw itzerland..........................................................................................
United Kingdom..................................................................................
3,903
289
167
366
390
248
2,110
4,574
345
168
497
828
170
2,372
3,582
355
134
283
401
235
1,955
3,713
317
126
381
542
190
1,957
4,574
345
168
497
828
170
2,372
4,808
360
188
520
795
174
2,568
5,392'
422
341
657
783
238'
2,783
5,214
404
327
557
766
224
2,761
19
C anada......................................................................................................
244
290
304
482
456
20
21
22
23
24
25
26
Latin America and C aribbean..............................................................
Bahamas................................................................................................
B erm u d a..............................................................................................
B ra z il....................................................................................................
British West Indies..............................................................................
M exico..................................................................................................
V enezuela............................................................................................
1,357
478
4
10
194
102
49
1,483
375
81
18
514
121
72
1,395
477
2
19
189
131
68
1,347
390
2
14
198
122
71
1,483
375
81
18
514
121
72
1,764
459
83
22
694
101
70
1,633
434
2
25
700
101
72
1,718
412
1
20
685
108
74
27
28
29
Asia............................................................................................................
Japan ....................................................................................................
Middle East oil-exporting countries3 ..............................................
780
714
32
790
723
31
764
706
25
757
700
19
790
723
31
805
737
26
750
680
31
705
615
37
30
31
A frica........................................................................................................
Oil-exporting countries4 ....................................................................
5
2
4
1
6
2
5
1
4
1
11
1
10
1
11
1
32
All other5..................................................................................................
5
4
5
5
4
10
15
21
33
34
35
36
37
38
39
Commercial liabilities
E u ro p e......................................................................................................
Belgium-Luxembourg........................................................................
France....................................................................................................
G erm an y ..............................................................................................
N etherlands..........................................................................................
Sw itzerland..........................................................................................
United Kingdom..................................................................................
3,033
75
321
529
246
302
824
3,621
137
467
534
227
310
1,073
3,303
81
353
471
230
439
997
3,393
103
394
539
206
348
1,015
3,621
137
467
534
227
310
1,073
3,682
117
503
533
288
382
994
4,008
132
485
714
245
462
1,120
4,066
109
501
693
276
452
1,033
40
Canada......................................................................................................
667
868
663
717
868
720
591
590
41
42
43
44
45
46
47
Latin America..........................................................................................
Bahamas................................................................................................
B erm u d a..............................................................................................
B ra z il....................................................................................................
British West Indies..............................................................................
M exico..................................................................................................
V enezuela............................................................................................
997
25
97
74
53
106
303
1,323
69
32
203
21
257
301
1,335
65
82
165
121
216
323
1,401
89
48
186
21
270
359
1,323
69
32
203
21
257
301
1,253
4
47
228
20
235
211
1,271
26
107
151
37
272
210
1,361
8
114
156
12
324
293
48
49
50
Asia............................................................................................................
Japan ....................................................................................................
Middle East oil-exporting countries3 ..............................................
2,932
448
1,523
2,865
488
1,017
3,034
516
1,225
2,996
517
1,070
2,865
488
1,017
2,912
578
901
3,053
411
1,019
2,909
502
944
51
52
A frica........................................................................................................
Oil-exporting countries4 ....................................................................
743
312
728
384
891
410
775
370
728
384
742
382
875
498
1,006
633
53
All other5..................................................................................................
203
233
243
287
233
263
367
396
1. For a description of the changes in the International Statistics tables, see July
1979 B u ll e t i n , p. 550.
2. Before December 1978, foreign currency data include only liabilities denominated in foreign currencies with an original maturity of less than one year.
445'
445'
383'
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.
Nonbank-Reported Data
3.25
CLAIMS ON UN AFFILIATED FOREIGNERS
United States1
A65
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1980
1979
Type, and area or country
1979
1978
June
Sept.
Dec.
Mar.
June
Sept. r
1 T o tal..............................................................................................................
27,864
30,899
30,318
30,949
30,899
31,984
31,894
31,458
2 Payable in dollars........................................................................................
3 Payable in foreign currencies2 ..................................................................
24,881
2,984
27,734
3,165
27,418
2,900
28,280
2,668
27,734
3,165
28,984
3,000
28,852
3,042
28,280
3,178
By type
4 Financial claim s..........................................................................................
5 D eposits....................................................................................................
6
Payable in dollars................................................................................
7
Payable in foreign currencies............................................................
8 Other financial claim s............................................................................
9
Payable in dollars................................................................................
10
Payable in foreign currencies............................................................
16,528
11,069
10,000
1,068
5,459
3,874
1,584
18,139
12,493
11,584
909
5,646
3,803
1,843
19,321
13,661
12,706
956
5,660
4,079
1,581
19,176
13,730
12,830
901
5,446
4,030
1,416
18,139
12,493
11,584
909
5,646
3,803
1,843
19,260
13,586
12,612
974
5,673
4,055
1,619
18,543
12,702
11,822
879
5,841
4,103
1,737
18,164
12,099
11,018
1,081
6,065
4,395
1,670
11 Commercial claims......................................................................................
12 Trade receivables....................................................................................
13 Advance payments and other c la im s..................................................
11,337
10,778
559
12,760
12,072
688
10,997
10,368
628
11,773
11,061
712
12,760
12,072
688
12,724
12,079
645
13,352
12,656
695
13,294
12,605
688
14
15
Payable in dollars....................................................................................
Payable in foreign currencies................................................................
11,006
331
12,347
413
10,633
363
11,421
352
12,347
413
12,317
407
12,926
425
12,867
427
16
17
18
19
20
21
22
By area or country
Financial claims
E u ro p e......................................................................................................
Belgium-Luxembourg........................................................................
France....................................................................................................
G erm an y ..............................................................................................
N etherlands..........................................................................................
S w itzerland..........................................................................................
United Kingdom..................................................................................
5,218
48
178
510
103
98
4,023
6,129
32
177
409
53
73
5,064
5,640
54
183
363
62
81
4,650
6,562
33
191
393
51
85
5,522
6,129
32
177
409
53
73
5,064
5,840
19
290
300
39
89
4,790
5,835
23
307
190
37
96
4,855
5,576
14
381
168
30
41
4,546
23
C anada......................................................................................................
4,482
4,812
5,146
4,767
4,812
4,882
4,778
4,798
24
25
26
27
28
29
30
Latin America and C aribbean..............................................................
Bahamas................................................................................................
B e rm u d a ..............................................................................................
B ra z il....................................................................................................
British West Indies..............................................................................
M exico..................................................................................................
V enezuela............................................................................................
5,672
2,959
80
151
1,288
163
157
6,204
2,684
30
163
2,001
158
143
7,448
3,648
57
141
2,407
159
155
6,682
3,284
31
133
1,838
156
139
6,204
2,684
30
163
2,001
158
143
7,516
3,450
34
128
2,591
169
134
6,851
3,007
25
120
2,393
178
139
6,671
2,757
65
116
2,283
192
128
31
32
33
Asia............................................................................................................
Japan ....................................................................................................
Middle East oil-exporting countries3 ..............................................
920
305
18
697
190
16
800
217
17
818
222
21
697
190
16
713
226
18
758
253
16
792
269
20
34
35
A frica........................................................................................................
Oil-exporting countries4 ....................................................................
181
10
253
49
227
23
277
41
253
49
265
40
256
35
260
29
36
All other5..................................................................................................
55
44
61
69
44
43
65
68
37
38
39
40
41
42
43
Commercial claims
E u ro p e......................................................................................................
Belgium-Luxembourg........................................................................
France....................................................................................................
G erm an y ..............................................................................................
N etherlands..........................................................................................
Sw itzerland..........................................................................................
United Kingdom..................................................................................
3,985
144
609
399
267
198
827
4,901
203
727
584
298
269
905
3,833
170
470
421
307
232
731
4,127
179
518
448
262
224
818
4,901
203
727
584
298
269
905
4,756
208
703
515
347
349
924
4,820
255
662
504
297
429
908
4,655
230
707
569
289
333
988
44
C anada......................................................................................................
1,096
843
1,106
1,164
843
862
895
929
45
46
47
48
49
50
51
Latin America and C aribbean..............................................................
Bahamas................................................................................................
B e rm u d a ..............................................................................................
B ra z il....................................................................................................
British West Indies..............................................................................
M exico..................................................................................................
V enezuela............................................................................................
2,547
109
215
629
9
506
292
2,855
21
197
647
16
700
342
2,410
98
118
503
25
588
296
2,595
16
154
568
13
648
346
2,855
21
197
647
16
700
342
2,992
19
135
656
11
835
349
3,281
19
133
697
9
921
394
3,375
53
81
710
17
981
388
52
53
54
Asia............................................................................................................
Japan ....................................................................................................
Middle East oil-exporting countries3 ..............................................
3,082
976
717
3,365
1,127
766
2,967
1,005
685
3,116
1,128
701
3,365
1,127
766
3,370
1,209
718
3,540
1,130
829
3,395
1,094
837
55
56
A frica........................................................................................................
Oil-exporting countries4 ....................................................................
447
136
556
133
487
139
549
140
556
133
518
114
567
115
669
135
57
All other5..................................................................................................
179
240
194
220
240
225
249
270
1. For a description of the changes in the International Statistics tables, see July
1979 B u ll e t i n , p. 550.
2. Prior to December 1978, foreign currency data include only liabilities denominated in foreign currencies with an original maturity of less than one year.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Q atar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.
A66
3.26
International Statistics □ May 1981
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Rate on Apr. 30, 1981
Rate on Apr. 30, 1981
Per
cent
182.47
6.75
14.0
40.0
17.40
11.00
Argentina
Austria ..
Belgium ..
B razil.. . .
Canada ..
Denmark.
Country
Month
effective
Apr.
Mar.
Apr.
June
Apr.
Oct.
Per
cent
France1 ...........................
Germany, Fed. Rep. of
Italy .................................
Japan...............................
N etherlands...................
Norw ay...........................
1981
1980
1981
1980
1981
1980
1. As from February 1981, the rate at which the Bank of France discounts
Treasury bills for 7 to 10 days.
N o t e . Rates shown are mainly those at which the central bank either
discounts or makes advances against eligible commercial paper and/or
3.27
Rate on Apr. 30, 1981
Country
Country
Month
effective
12.5
7.5
19.0
6.25
9.0
9.0
Mar.
May
Mar.
Mar.
Mar.
Nov.
1981
1980
1981
1981
1981
1979
Sweden ..............
Switzerland........
United Kingdom
Venezuela..........
Per
cent
Month
effective
12.0
4.0
12.0
10.0
Jan. 1981
Feb. 1981
Mar. 1981
July 1980
government securities for commercial banks or brokers. For countries with
more than one rate applicable to such discounts or advances, the rate
shown is the one at which it is understood the central bank transacts the
largest proportion of its credit operations.
FOREIGN SHORT-TERM INTEREST RATES
Percent per annum , averages of daily figures
1980
Country, or type
Dec.
Jan.
1
2
3
4
5
Eurodollars........
United Kingdom
Canada ..............
Germany............
Switzerland........
8.74
9.18
8.52
3.67
0.74
11.96
13.60
11.91
6.64
2.04
14.00
16.59
13.12
9.45
5.79
13.55
15.87
11.71
8.99
5.40
16.46
15.84
12.96
9.37
5.53
19.47
14.64
16.83
6
7
8
9
10
Netherlands . . . .
France ................
Italy....................
Belgium..............
Japan ..................
6.53
8.10
11.40
7.14
4.75
9.33
9.44
11.85
10.48
6.10
10.60
12.18
17.50
14.06
11.45
9.63
11.69
18.16
12.24
10.98
9.59
11.26
17.51
12.40
9.74
Feb.
Mar.
Apr.
6.61
18.07
14.20
16.98
9.41
5.68
17.18
13.12
17.28
10.74
7.09
15.36
12.58
16.85
13.44
8.33
15.95
12.26
17.35
13.12
8.67
9.69
11.52
17.47
12.75
9.60
9.36
11.38
17.34
12.41
9.00
9.78
11.87
17.50
12.52
8.52
10.61
12.56
18.22
13.93
7.87
10.41
13.00
19.92
17.16
6.83
10.11
N o t e . Rates are for 3-month interbank loans except for the following:
Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan,
Gensaki rate.
3.28
FOREIGN EXCHANGE RATES
Cents per unit o f foreig n currency
1980
Country/currency
1978
1979
1981
1980
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
1
2
3
4
5
A ustralia/dollar..........................
Austria/schilling..........................
Belgium/franc..............................
Canada/dollar..............................
Denmark/krone..........................
114.41
6.8958
3.1809
87.729
18.156
111.77
7.4799
3.4098
85.386
19.010
114.00
7.7349
3.4247
85.530
17.766
117.43
7.6714
3.3875
85.538
17.639
116.75
7.3433
3.2457
84.286
16.962
116.86
7.1549
3.1543
83.560
16.573
118.19
7.0297
3.0962
83.974
16.181
116.26
6.6033
2.8972
83.442
15.152
116.29
6.6959
2.8966
83.936
15.109
115.32
6.5355
2.8220
83.966
14.683
6
7
8
9
10
Finland/markka..........................
France/franc................................
Germany/deutsche m a rk ..........
India/rupee..................................
Ireland/pound............................
24.337
22.218
49.867
12.207
191.84
27.732
23.504
54.561
12.265
204.65
26.892
23.694
55.089
12.686
205.77
27.122
23.489
54.280
12.932
203.88
26.452
22.515
52.113
12.868
194.59
25.903
21.925
50.769
12.608
189.01
25.752
21.539
49.771
12.567
185.54
24.656
20.142
46.757
12.164
173.31
24.612
20.147
47.498
12.131
173.25
23.059
19.548
46.219
12.060
168.46
11
12
13
14
15
Ita ly /lira......................................
Japan/yen....................................
Malaysia/ringgit..........................
Mexico/peso................................
Netherlands/guilder....................
16
17
18
19
20
New Zealand/dollar..................
N orw ay/krone............................
Portugal/escudo..........................
South A frica/rand......................
Spain/peseta................................
103.64
19.079
2.2782
115.01
1.3073
102.23
19.747
2.0437
118.72
1.4896
97.337
20.261
1.9980
128.54
1.3958
98.069
20.421
1.9756
133.13
1.3423
96.770
19.938
1.9178
133.20
1.3085
95.404
19.370
1.8773
132.83
1.2653
96.137
19.087
1.8591
133.69
1.2409
93.414
18.485
1.7722
129.27
1.1686
91.999
18.540
1.7621
126.50
1.1672
90.273
18.271
1.7178
123.32
1.1395
21
22
23
24
Sri Lanka/rupee..........................
Sw eden/krona............................
Switzerland/franc........................
United Kingdom/pound............
6.3834
22.139
56.283
191.84
6.4226
23.323
60.121
212.24
6.1947
23.647
59.697
232.58
5.9707
23.845
60.185
241.64
5.8139
23.240
57.942
239.41
5.7379
22.722
56.022
234.59
5.9525
22.490
54.907
240.29
5.5975
21.734
51.502
229.41
5.5527
21.704
52.043
223.19
5.4185
21.309
50.664
217.53
92.39
88.09
87.39
86.59
89.31
90.99
91.38
96.02
96.22
98.80
.11782
.47981
43.210
4.3896
46.284
.12035
.45834
45.720
4.3826
49.843
.11694
.44311
45.967
4.3535
50.369
.11441
.47777
46.902
4.3324
50.052
.11000
.46928
46.187
4.3166
48.102
.10704
.47747
45.406
4.3071
46.730
.10478
.49419
44.994
4.2792
45.810
.09807
.48615
44.196
4.2544
42.870
.09699
.47897
43.830
4.2238
42.912
.09280
.46520
43.182
4.1880
41.660
M em o:
25 United States/dollar1 ................
1. Index of weighted-average exchange value of U.S. dollar against cur
rencies of other G-10 countries plus Switzerland. March 1973 = 100.
Weights are 1972-76 global trade of each of the 10 countries. Series
revised as of August 1978. For description and back data, see “Index of
the Weighted-Average Exchange Value of the U.S. Dollar: Revision” on page
700 of the August 1978 B u l l e t i n .
N o te.
Averages of certified noon buying rates in New York for cable transfers.
A67
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
G
u id e t o
Ta b u l a r P r e s e n t a t io n
Symbols and Abbreviations
c
e
P
r
*
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading
when more than half of figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is
millions)
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
General 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 is
sues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct obli
S t a t is t ic a l R
gations of the Treasury. “ State and local government” also
includes municipalities, special districts, and other political
subdivisions.
In some of the tables details do not add to totals because of
rounding.
eleases
List Published Semiannually, with Latest Bulletin Reference
Anticipated schedule of release dates for periodic releases ....................................................................
Issue
P age
December 1980
A80
S p e c ia l Ta b l e s
Published Irregularly, with Latest Bulletin Reference
Commercial bank assets and
Commercial bank assets and
Commercial bank assets and
Commercial bank assets and
Assets and liabilities of U.S.
liabilities, call dates, December 31, 1978, to March 31, 1980 .......
liabilities, June 30, 1980.......................................................................
liabilities, September 30, 1980............................................................
liabilities, December 31, 1980 .............................................................
branches and agencies of foreign banks, September 30, 1980.......
October
December
February
April
April
1980
1980
1981
1981
1981
A71
A68
A68
A ll
A78
A68
Federal Reserve Board of Governors
Paul
A.
Volcker,
Chairman
Vice Chairman
H
enry
C. W
a l l ic h
F reder ick H. S c h u l t z ,
J. C h a r l e s P a r t e e
O
O f f ic e o f S t a f f D ir e c t o r f o r
M o n e t a r y a n d F in a n c ia l P o l ic y
f f ic e o f
Board M
em bers
J o s e p h R . C o y n e , A ssistant to the Board
D o n a l d J . W i n n , A ssistan t to the Board
A n t h o n y F . C o l e , Special Assistant to the Board
W i l l i a m R . M a l o n i , Special A ssistant to the Board
F r a n k O ’B r i e n , J r . , Special A ssistant to the Board
J o s e p h S . S im s , Special Assistant to the B oard
J a m e s L. S t u l l , M anager, Operations R eview Program
S t e p h e n H . A x i l r o d , Staff D irector
E d w a r d C . E t t i n , D eputy Staff Director
M u r r a y A l t m a n n , A ssistant to the Board
P e t e r M . K e i r , A ssistan t to the Board
S t a n l e y J . S i g e l , A ssistant to the Board
N o r m a n d R . V . B e r n a r d , Special Assistant to the Board
L egal D
D
iv is io n
N e a l L . P e t e r s e n , General Counsel
R o b e r t E. M a n n i o n , Deputy General Counsel
J. V i r g i l M a t t i n g l y , J r . , A ssociate General Counsel
G i l b e r t T . S c h w a r t z , A ssociate General Counsel
M i c h a e l E. B l e i e r , A ssistant General Counsel
C o r n e l i u s K . H u r l e y , J r . , A ssistant General Counsel
M a r y e l l e n A - B r o w n , A ssistant to the General Counsel
C h a r l e s R . M c N e i l l , A ssistant to the General Counsel
O f f ic e
o f th e
Secretary
B a r b a r a R . L o w r e y , A ssistant Secretary
J a m e s M c A f e e , A ssistant Secretary
*D . M i c h a e l M a n i e s , A ssistant Secretary
D
iv is io n o f
and
Com
C onsu m er
A f f a ir s
iv is io n o f
R esearch
and
S
t a t is t ic s
J a m e s L . K i c h l i n e , Director
J o s e p h S . Z e i s e l , D eputy D irector
M i c h a e l J. P r e l l , A ssociate D irector
R o b e r t A . E i s e n b e i s , Senior D eputy A ssociate D irector
J a r e d J . E n z l e r , Senior Deputy A ssociate D irector
E l e a n o r J. S t o c k w e l l , Senior D eputy A ssociate D irector
D o n a l d L . K o h n , D eputy A ssociate Director
J. C o r t l a n d G . P e r e t , Deputy A ssociate D irector
H e l m u t F . W e n d e l , D eputy A ssociate D irector
M a r t h a B e t h e a , A ssistant D irector
J o e M . C l e a v e r , A ssistant D irector
R o b e r t M . F i s h e r , A ssistant Director
D a v i d E . L i n d s e y , A ssistan t D irector
L a w r e n c e S l i f m a n , A ssistant D irector
F r e d e r i c k M . S t r u b l e , A ssistant D irector
S t e p h e n P . T a y l o r , A ssistant D irector
L e v o n H . G a r a b e d i a n , Assistant Director (Adm inistration)
m u n it y
D
J a n e t O . H a r t , D irector
G r i f f i t h L . G a r w o o d , Deputy D irector
J e r a u l d C . K l u c k m a n , A ssociate D irector
G l e n n E . L o n e y , A ssistant D irector
D o l o r e s S . S m i t h , A ssistant D irector
D iv is io n o f B a n k in g
S u p e r v is io n a n d R e g u l a t io n
J o h n E . R y a n , D irector
F r e d e r i c k R . D a h l , A ssociate D irector
W i l l i a m T a y l o r , A ssociate D irector
W i l l i a m W . W i l e s , A ssociate D irector
J a c k M. E g e r t s o n , A ssistant D irector
R o b e r t A . J a c o b s e n , A ssistant D irector
D o n E . K l i n e , A ssistant D irector
R o b e r t S. P l o t k i n , A ssistant D irector
T h o m a s A . S i d m a n , A ssistant D irector
S a m u e l H . T a l l e y , Assistant D irector
L a u r a M. H o m e r , Securities Credit Officer
iv is io n o f
I n t e r n a t io n a l F in a n c e
E d w i n M . T r u m a n , D irector
R o b e r t F . G e m m i l l , A ssociate D irector
G e o r g e B . H e n r y , A ssociate D irector
C h a r l e s J . S i e g m a n , A ssociate D irector
S a m u e l P i z e r , S ta ff A dviser
D a l e W . H e n d e r s o n , A ssistant D irector
L a r r y J . P r o m i s e l , A ssistant D irector
R a l p h W . S m i t h , J r . , Assistant Director
A69
and Official Staff
N ancy H. T eeters
E m m e t t J. R ic e
O f f ic e o f
S ta f f D ir e c t o r
L yle E. G ram ley
for
M
anagem ent
J o h n M . D e n k l e r , S ta ff D irector
E d w a r d T . M u l r e n i n , Assistant Staff D irector
J o s e p h W . D a n i e l s , S r . , D irector o f Equal Em ploym ent Op
O f f ic e o f S t a f f D ir e c t o r f o r
F e d e r a l R e s e r v e B a n k A c t iv it ie s
T h e o d o r e E . A l l i s o n , Staff D irector
H a r r y A . G u i n t e r , A ssistant D irector fo r Contingency
Planning
portunity
D
iv is io n o f
D
ata
P
r o c e s s in g
C h a r l e s L. H a m p t o n , D irector
B r u c e M . B e a r d s l e y , D eputy D irector
U y l e s s D . B l a c k , A ssociate D irector
G l e n n L. C u m m in s , A ssistant D irector
N e a l H . H i l l e r m a n , A ssistant D irector
C . W i l l i a m S c h l e i c h e r , J r . , A ssistant D irector
R o b e r t J . Z e m e l , A ssistant D irector
D
iv is io n o f
P ersonnel
D a v i d L . S h a n n o n , D irector
J o h n R . W e i s , A ssistan t Director
C h a r l e s W . W o o d , A ssistant D irector
O f f ic e
o f the
C
ontroller
J o h n K a k a l e c , Controller
G e o r g e E . L i v i n g s t o n , Assistant Controller
D iv is io n
of
S
upport
S e r v ic e s
D o n a l d E . A n d e r s o n , Director
W a l t e r W . K r e i m a n n , A ssociate D irector
R o b e r t E . F r a z i e r , A ssistant D irector
*On loan from the Federal Reserve Bank of Kansas City.
D iv is io n o f F e d e r a l R
B a n k O p e r a t io n s
eserve
C l y d e H . F a r n s w o r t h , J r . , D irector
L o r i n S . M e e d e r , A ssociate D irector
R a y m o n d L . T e e d , A ssociate D irector
W a l t e r A l t h a u s e n , A ssistant D irector
C h a r l e s W . B e n n e t t , A ssistant D irector
R i c h a r d B . G r e e n , A ssistant D irector
E l l i o t t C . M c E n t e e , A ssistant D irector
D a v i d L . R o b i n s o n , A ssistant D irector
P . D . R i n g , A dviser
A70
Federal Reserve Bulletin □ May 1981
FOMC and Advisory Councils
Federal O pen M
arket
C
o m m it t e e
P a u l A . V o l c k e r , Chairman
E dw ard G. Boehne
R o b e r t H . B o y k in
E. G e r a ld C o r r ig a n
A n t h o n y M . S o l o m o n , Vice Chairman
L yle E . G ram ley
F r e d e r ic k H . S c h u l t z
N a n c y H .T e e te r s
H e n r y C. W a llic h
J. C h a r l e s P a r t e e
E m m e t t J. R ic e
S t e p h e n H . A x i l r o d , S ta ff D irector
M u r r a y A l t m a n n , Secretary
N o r m a n d R . V . B e r n a r d , A s s i s t a n t S e c r e ta r y
N a n c y M . S t e e l e , D eputy A ssistant Secretary
N e a l L . P e t e r s e n , General Counsel
J a m e s H . O l t m a n , D eputy General Counsel
R o b e r t E. M a n n i o n , A ssistant General Counsel
J a m e s L . K i c h l i n e , Econom ist
A l a n R . H o l m e s , A dviser fo r M arket Operations
J o s e p h E. B u r n s , A ssociate Econom ist
J o h n P. D a n f o r t h , A ssociate Econom ist
R i c h a r d G . D a v i s , A ssociate Econom ist
E d w a r d C. E t t i n , A ssociate Econom ist
G e o r g e B . H e n r y , A ssociate Econom ist
P e t e r M . K e ir , A ssociate Econom ist
D o n a l d J. M u l l i n e a u x , A ssociate Econom ist
M i c h a e l J. P r e l l , A ssociate Econom ist
K a r l L . S c h e l d , A ssociate Econom ist
E d w i n M . T r u m a n , A ssociate Econom ist
J o s e p h S . Z e i s e l , A ssociate Econom ist
P e t e r D . S t e r n l i g h t , M anager fo r D om estic Operations, System Open M arket Account
S c o t t E . P a r d e e , M anager fo r Foreign O perations, System Open M arket Account
Federal A
d v is o r y
C o u n c il
M e r le
C h au n cey
E. G i l l i a n d , F o u rth D is tr ic t, President
E. S c h m i d t , T w e lfth D is tr ic t, Vice President
W il l i a m S. E d g e r l y , F ir st D istr ict
D o n a l d C . P l a t t e n , S e c o n d D istr ict
J o h n H . W a l t h e r , T hird D is tr ic t
J. O w e n C o l e , F ifth D is tr ic t
R o b e r t S t r i c k l a n d , S ix th D is tr ic t
R o b e r t M . S u r d a m , S e v e n th D is tr ic t
R o n a l d T e r r y , E ig h th D is tr ic t
C l a r e n c e G . F r a m e , N in th D is tr ic t
G o r d o n E . W e l l s , T e n th D is tr ic t
T . C . F r o s t , J r ., E le v e n th D is tr ic t
H e r b e r t V . P r o c h n o w , Secretary
W i l l i a m J. K o r s v i k , A ssociate Secretary
C o nsu m er A
d v is o r y
C o u n c il
R a l p h J. R o h n e r , Washington D.C., Chairman
C h a r l o t t e H . S c o t t , Charlottesville, Virginia, Vice Chairman
A r t h u r F . B o u t o n , Little Rock, Arkansas
J u l i a H . B o y d , Alexandria, Virginia
E l l e n B r o a d m a n , Washington, D.C.
J a m e s L . B r o w n , M ilw a u k e e , W is c o n sin
M a r k E . B u d n i t z , A tla n ta , G e o r g ia
J o s e p h N . C u g in i, W e s te r ly , R h o d e Isla n d
R i c h a r d S . D ’A g o s t i n o , P h ila d e lp h ia , P e n n s y lv a n ia
S u s a n P i e r s o n D e W i t t , S p rin g field , I llin o is
J o a n n e S . F a u l k n e r , N e w H a v e n , C o n n e c tic u t
L u t h e r G a t l i n g , N e w Y ork, N e w Y ork
V e r n a r d W . H e n l e y , R ic h m o n d , V irg in ia
J u a n J e s u s H i n o j o s a , McAllen, T e x a s
S h i r l e y T . H o s o i , L o s A n g e le s , C a lifo rn ia
G e o r g e S . I r v i n , D e n v e r , C o lo r a d o
F . T h o m a s J u s t e r , A n n A r b o r , M ic h ig a n
R i c h a r d F . K e r r , C in c in n a ti, O h io
H a r v e y M . K u h n l e y , M in n e a p o lis, M in n e s o ta
T h e R e v . R o b e r t J. M c E w e n , S .J ., C h e stn u t H ill,
M a ss a c h u s e tts
S t a n L . M u l a r z , C h ic a g o , I llin o is
W i l l i a m J. O ’C o n n o r , B u ffa lo , New Y o r k
M a r g a r e t R e i l l y - P e t r o n e , U p p e r M o n tc la ir , New J e r s e y
R e n e R e i x a c h , R o c h e s te r , New Y o r k
F l o r e n c e M . R ic e , New Y o r k , New Y o rk
H e n r y B . S c h e c h t e r , W a s h in g to n , D .C .
P e t e r D. S c h e l l i e , W a s h in g to n , D.C.
N a n c y Z. S p i l l m a n , L o s A n g e le s , C aliforn ia
R i c h a r d A . V a n W i n k l e , S a lt L a k e C ity , U ta h
M a r y W . W a l k e r , M o n r o e , G e o r g ia
A71
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*.................... 02106
Robert P. Henderson
Thomas I. Atkins
Frank E. Morris
James A. McIntosh
NEW YORK* ............
Robert H. Knight, Esq.
Boris Yavitz
Frederick D. Berkeley, III
Anthony M. Solomon
Thomas M. Timlen
19105
John W. Eckman
Jean A. Crockett
Edward G. Boehne
Richard L. Smoot
44101
J. L. Jackson
William H. Knoell
Martin B. Friedman
Milton G. Hulme, Jr.
Willis J. Winn
Walter H. MacDonald
Maceo A. Sloan
Steven Muller
Joseph H. McLain
Naomi G. Albanese
Robert P. Black
Jimmie R. Monhollon
William A. Fickling, Jr.
John H. Weitnauer, Jr.
Louis J. Willie
Jerome P. Keuper
Roy W. Vandegrift, Jr.
John C. Bolinger, Jr.
Horatio C. Thompson
William F. Ford
Robert P. Forrestal
John Sagan
Stanton R. Cook
Herbert H. Dow
Vacancy
Daniel M. Doyle
Armand C. Stalnaker
William B. Walton
E. Ray Kemp, Jr.
Sister Eileen M. Egan
Patricia W. Shaw
Lawrence K. Roos
Donald W. Moriarty, Jr.
Stephen F. Keating
William G. Phillips
Norris E. Hanford
E. Gerald Corrigan
Thomas E. Gainor
Paul H. Henson
Doris M. Drury
Caleb B. Hurtt
Christine H. Anthony
Robert G. Lueder
Roger Guffey
Henry R. Czerwinski
Gerald D. Hines
John V. James
Josefina A. Salas-Porras
Jerome L. Howard
Lawrence L. Crum
Robert H. Boykin
William H. Wallace
Cornell C. Maier
Caroline L. Ahmanson
Harvey A. Proctor
John C. Hampton
Wendell J. Ashton
George H. Weyerhaeuser
John J. Balles
John B. Williams
10045
Buffalo....................... 14240
PHILADELPHIA
CLEVELAND*
.....
Cincinnati.................. ,45201
Pittsburgh.................. ..15230
RICHMOND* ...............23219
Baltimore.................... 21203
Charlotte .................... 28230
John T. Keane
Robert E. Showalter
Harold J. Swart
Robert D. McTeer, Jr.
Stuart P. Fishbume
Culpeper Com munications
and R ecords C enter 22701
ATLANTA .................. 30301
Birmingham ............ ..35202
Jacksonville ............ 32231
Miami ....................... .,33152
Nashville .................. 37203
New Orleans............ .70161
CHICAGO*.................. 60690
Detroit....................... ..48231
ST. LOUIS .................. ..63166
Little R o ck ............... ..72203
Louisville.................. ..40232
Memphis .................. 38101
MINNEAPOLIS......... ..55480
Helena........................ 59601
KANSAS CITY
,.64198
Denver........................ .80217
Oklahoma City...........,.73125
Omaha........................ .68102
DALLAS ..................... .75222
El Paso........................ 79999
Houston..................... 77001
San Antonio ............. .78295
SAN FRANCISCO ... ,94120
Los Angeles .............
Portland.....................
Salt Lake C ity ...........
Seattle........................
,90051
97208
84130
98124
Vice President
in charge of branch
Albert D. Tinkelenberg
Hiram J. Honea
Charles D. East
F. J. Craven, Jr.
Jeffrey J. Wells
James D. Hawkins
William C. Conrad
John F. Breen
Donald L. Henry
Robert E. Matthews
Betty J. Lindstrom
Wayne W. Martin
William G. Evans
Robert D. Hamilton
Joel L. Koonce, Jr.
J. Z. Rowe
Carl H. Moore
Richard C. Dunn
Angelo S. Carella
A. Grant Holman
Gerald R. Kelly
*A dditional offices o f th ese B anks are located at L ew isto n , M aine 04240; W indsor L ocks, C onnecticut 06096; C ranford, N ew Jersey 07016;
Jericho, N ew Y ork 11753; U tica at O riskany, N ew Y o rk 13424; C olum bus, Ohio 43216; Colum bia, South C arolina 29210; C harleston, W est
Virginia 25311; Des M oines, Iow a 50306; Indianapolis, Indiana 46204; and M ilw aukee, W isconsin 53202.
A72
Federal Reserve Board Publications
Copies are available from PUBLICATIONS SERVICES,
Room MP-510, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551. When a charge is indicat
ed, rem ittance should accom pany request and be made
T h e F e d e r a l R e se r v e S y ste m — P u rp o se s a n d F u n c
t i o n s . 1974. 125 pp.
A n n u a l R eport.
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B a n k i n g a n d M o n e t a r y S t a t i s t i c s . 1914-1941. (Reprint
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B a n k i n g a n d M o n e t a r y S t a t i s t i c s , 1941-1970. 1976.
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A n n u a l S t a t is t ic a l D ig e s t
1971-75. 1976. 339 p p . $4.00 p e r c o p y fo r e a c h paid su b
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1974-78.
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1977.
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305
587
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Issued annually in Sept. Subscrip
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H is to r ic a l C h a r t B o o k .
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R e g u la tio n s o f t h e B o a rd o f G o v e r n o r s o f t h e F e d
F l o w o f F u n d s A c c o u n t s . 1949-1978. 1979. 171 pp. $1.75
e r a l R e se r v e S y ste m
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P u b lic P o lic y a n d C a p it a l F o r m a t io n .
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1981. 326 pp.
A73
C o n s u m e r E d u c a t io n P a m p h l e t s
Short pam phlets suitable fo r classroom use. Multiple cop
ies available without charge.
Alice in Debitland
The Board of Governors of the Federal Reserve System
Consumer Handbook To Credit Protection Laws
The Equal Credit Opportunity Act and . . . Age
The Equal Credit Opportunity Act and . . . Credit Rights in
Housing
The Equal Credit Opportunity Act and . . . Doctors, Law
yers, Small Retailers, and Others Who May Provide In
cidental Credit
The Equal Credit Opportunity Act and . . . Women
Fair Credit Billing
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Federal Reserve Glossary
How to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You Use A Credit Card
Truth in Leasing
U.S. Currency
What Truth in Lending Means to You
S t u d ie s
Studies and papers on economic and financial subjects that
are o f general interest.
staff
Summaries Only Printed in the Bulletin
Requests to obtain single copies o f the fu ll text or to be
added to the mailing list fo r the series m ay be sent to Pub
lications Services.
T ie - in s B e t w e e n t h e G r a n t i n g o f C r e d i t a n d S a l e s o f
I n s u r a n c e b y B a n k H o l d i n g C o m p a n ie s a n d O t h e r
L e n d e r s , by Robert A. Eisenbeis and Paul R. Schweit
zer. Feb. 1979. 75 pp.
I n n o v a t i o n s in B a n k L o a n C o n t r a c t i n g : R e c e n t E v i
d e n c e by Paul W. Boltz and Tim S. Campbell. May
1979. 40 pp.
M e a s u r e m e n t o f C a p a c ity U t i l i z a t i o n : P r o b le m s a n d
T a s k s , by Frank de Leeuw, Lawrence R. Forest, Jr.,
Richard D . Raddock, and Zoltan E. Kenessey. July
1979. 264 pp.
T h e G N M A -G u a r a n te e d P a s s th r o u g h S e c u r ity : M a r
k e t D e v e lo p m e n t a n d I m p lic a tio n s f o r t h e
G r o w th a n d S t a b ilit y o f H om e M o r tg a g e L en d
i n g , by David F . Seiders. Dec. 1979. 65 pp.
F o r e i g n O w n e r s h i p a n d t h e P e r f o r m a n c e o f U .S .
B a n k s , by James V. Houpt. July 1980. 27 pp.
P e r fo r m a n c e a n d C h a r a c te r is tic s o f E d g e C o rp o ra
t i o n s , by James V. Houpt. Feb. 1981. 56 pp.
B a n k in g S t r u c t u r e a n d P e r fo r m a n c e a t t h e S t a t e
L e v e l d u r i n g t h e 1970s , by Stephen A . Rhoades. Mar.
1981. 26 pp.
Printed in Full in the Bulletin
A n A s s e s s m e n t o f B a n k H o l d i n g C o m p a n ie s , by Robert
J. Lawrence and Samuel H . Talley. January 1976.
R e p r in t s
M ost o f the articles reprinted do not exceed 12 pages.
Measures of Security Credit. 12/70.
Revision of Bank Credit Series. 12/71.
Assets and Liabilities of Foreign Branches of U.S. Banks.
2/72.
Bank Debits, Deposits, and Deposit Turnover—Revised Se
ries. 7/72.
Rates on Consumer Instalment Loans. 9/73.
New Series for Large Manufacturing Corporations. 10/73.
The Structure of Margin Credit. 4/75.
Industrial Electric Power Use. 1/76.
Revised Series for Member Bank Deposits and Aggregate Re
serves. 4/76.
Industrial Production—1976 Revision. 6/76.
Federal Reserve Operations in Payment Mechanisms: A
Summary. 6/76.
The Commercial Paper Market. 6/77.
The Federal Budget in the 1970’s. 9/78.
Redefining the Monetary Aggregates. 1/79.
Implementation of the International Banking Act. 10/79.
Perspectives on Personal Saving. 8/80.
The Impact of Rising Oil Prices on the Major Foreign Indus
trial Countries. 10/80.
Federal Reserve and the Payments System: Upgrading Elec
tronic Capabilities for the 1980s. 2/81.
U.S. International Transactions in 1980. 4/81.
A74
Index to Statistical Tables
References are to pages A-3 through A-66 although the prefix “A ” is omitted in this index
ACCEPTANCES, bankers, 10, 23, 25
Agricultural loans, commercial banks, 18,19, 20, 24
Assets and liabilities (See also Foreigners)
Banks, by classes, 17, 18-21, 27
Domestic finance companies, 37
Federal Reserve Banks, 11
Nonfinancial corporations, current, 36
Automobiles
Consumer installment credit, 40, 41
Production, 46, 47
BANKERS balances, 17, 18--20 (See also Foreigners)
Banks for Cooperatives, 33
Bonds (See also U.S. government securities)
New issues, 34
Yields, 3
Branch banks, 15, 21, 54
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 36
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 44
Capital accounts
Banks, by classes, 17
Federal Reserve Banks, 11
Central banks, 66
Certificates of deposit, 21,25
Commercial and industrial loans
Commercial banks, 15, 24
Weekly reporting banks, 18-21,22
Commercial banks
Assets and liabilities, 3, 15. 17, 18-21
Business loans, 24
Commercial and industrial loans, 22, 24
Consumer loans held, by type, 40,41
Loans sold outright, 21
Nondeposit funds, 16
Number, 17
Real estate mortgages held, by holder and property, 39
Commercial paper, 3, 23, 25,37
Condition statements (See Assets and liabilities)
Construction, 44,48
Consumer installment credit, 40, 41
Consumer prices, 44, 49
Consumption expenditures, 50,51
Corporations
Profits and their distribution , 35
Security issues, 34,63
Cost of living (See Consumer prices)
Credit unions, 27,40,41
Currency and coin, 5, 17
Currency in circulation, 4,13
Customer credit, stock market, 26
DEBITS to deposit accounts, 12
Debt (See specific types o f debt or securities)
Demand deposits
Adjusted, commercial banks, 12,14
Banks, by classes, 17, 18-21
Ownership by individuals, partnerships, and
corporations, 23
Demand deposits—Continued
Subject to reserve requirements, 14
Turnover, 12
Deposits (See also specific typ es )
Banks, by classes, 3, 17, 18-21, 27
Federal Reserve Banks, 4,11
Turnover, 12
Discount rates at Reserve Banks (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 44, 45
Eurodollars, 25
FARM mortgage loans, 39
Farmers Home Administration, 39
Federal agency obligations, 4 ,1 0 ,1 1 ,1 2 ,3 2
Federal and federally sponsored credit agencies, 33
Federal finance
Debt subject to statutory limitation and types and
ownership of gross debt, 30
Receipts and outlays, 28, 29
Treasury operating balance, 28
Federal Financing Bank, 28,33
Federal funds, 3, 6, 18, 19, 20, 25, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 38,39
Federal Housing Administration, 33, 38,39
Federal Intermediate Credit Banks, 33
Federal Land Banks, 33, 39
Federal National Mortgage Association, 33, 38, 39
Federal Reserve Banks
C o n d itio n s ta te m e n t, 11
Discount rates (See Interest rates)
U.S. government securities held, 4 ,11,12, 30, 31
Federal Reserve credit, 4, 5,11, 12
Federal Reserve notes, 11
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 37
Business credit, 37
Loans, 18, 19,20, 40,41
Paper, 23, 25
Financial institutions, loans to, 18,19,20
Float, 4
Flow of funds, 42,43
Foreign
Currency operations, 11
Deposits in U.S. banks, 4 ,1 1 ,1 8 ,1 9 ,2 0
Exchange rates, 66
Trade, 53
Foreigners
Claims on, 54,56, 59,60,61,65
Liabilities to, 21, 54-58,62-64
GOLD
Certificates, 11
Stock,4,53
Government National Mortgage Association, 33, 38, 39
Gross national product, 50,51
A75
HOUSING, new and existing units, 48
INCOME, personal and national, 44, 50,51
Industrial production, 44,46
Installment loans, 40, 41
Insurance companies, 27, 30, 31, 39
Interbank loans and deposits, 17
Interest rates
Bonds, 3
Business loans of banks, 24
Federal Reserve Banks, 3,7
Foreign countries, 66
Money and capital markets, 3, 25
Mortgages, 3, 38
Prime rate, commercial banks, 24
Time and savings deposits, 9
International capital transactions of the
United States, 54-65
International organizations, 54-59,62-65
Inventories, 50
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 17,27
Commercial banks, 3, 15, 17, 18-20
Federal Reserve Banks, 11,12
Life insurance companies, 27
Savings and loan associations, 27
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 17,18—21,27
Commercial banks, 3, 15, 17, 18-21, 22, 24
Federal Reserve Banks, 3 ,4 ,5 ,7 ,1 1 ,1 2
Insurance companies, 27,39
Insured or guaranteed by United States, 38, 39
Savings and loan associations, 27
MANUFACTURING .
Capacity utilization, 44
Production, 44, 47
Margin requirements, 26
Member banks
Assets and liabilities, by classes, 17
Borrowings at Federal Reserve Banks, 5,11
Federal funds and repurchase agreements, 6
Number, 17
Reserve requirements, 8
Reserves and related items, 3, 4, 5, 14
Mining production, 47
Mobile home shipments, 48
Monetary aggregates, 3, 14
Money and capital market rates (See Interest rates)
Money stock measures and components, 3,13
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 3, 9,18-20, 27, 30, 31, 39
NATIONAL defense outlays, 29
National income, 50
OPEN market transactions, 10
PERSONAL income, 51
Prices
Consumer and producer, 44,49
Stock market, 26
Prime rate, commercial banks, 24
Production, 44,46
Profits, corporate, 35
REAL estate loans
Banks, by classes, 18-20, 27, 29
Life insurance companies, 27
Mortgage terms, yields, and activity, 3, 38
Type of holder and property mortgaged, 39
Repurchase agreements and federal funds, 6, 18,19,20
Reserve requirements, member banks, 8
Reserves
Commercial banks, 17
Federal Reserve Banks, 11
Member banks, 3, 4, 5, 14,17
U.S. reserve assets, 53
Residential mortgage loans, 38
Retail credit and retail sales, 40,41,44
SAVING
Flow of funds, 42, 43
National income accounts, 51
Savings and loan assns., 3 ,9 ,2 7 , 31, 39,42
Savings deposits (See Time deposits)
Savings institutions, selected assets, 27
Securities (See also U.S. government securities)
Federal and federally sponsored agencies, 33
Foreign transactions, 63
New issues, 34
Prices, 26
Special drawing rights, 4, 11,52, 53
State and local governments
Deposits, 18,19, 20
Holdings of U.S. government securities, 30, 31
New security issues, 34
Ownership of securities of, 18, 19, 20, 27
Yields of securities, 3
Stock market, 26
Stocks (See also Securities)
New issues, 34
Prices, 26
TAX receipts, federal, 29
Time deposits, 3, 9, 12, 14, 17, 18-21
Trade,foreign, 53
Treasury currency, Treasury cash, 4
Treasury deposits, 4,11, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. balance of payments, 52
U.S. government balances
Commercial bank holdings, 18, 19, 20
Member bank holdings, 14
Treasury deposits at Reserve Banks, 4, 11, 28
U.S. government securities
Bank holdings, 17, 18-20, 27, 30, 31
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 11, 12, 30, 31
Foreign and international holdings and transactions, 11,
30, 62
Open market transactions, 10
Outstanding, by type and ownership, 30, 31
Rates, 3,25
Utilities, production, 47
VETERANS Administration, 38, 39
WEEKLY reporting banks, 18-22
Wholesale (producer) prices, 44,49
YIELDS (See Interest rates)
A76
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
LEGEND
m~ m
m Boundaries of Federal Reserve Districts
Boundaries of Federal Reserve Branch
Territories
©
Board of Governors of the Federal Reserve
System
®
Federal Reserve Bank Cities
•
Federal Reserve Branch Cities
•
Federal Reserve Bank Facility
@FedFRASER