Full text of Federal Reserve Bulletin : May 1983
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VOLUME 6 9 •
NUMBER 5 •
M A Y 1983
FEDERAL RESERVE
BULLETIN
Board of Governors of the Federal Reserve System
Washington, D.C.
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Stephen H . Axilrod • Michael Bradfield • S. David Frost
Griffith L. Garwood • James L. Kichline • Edwin M. Truman
Naomi P. Salus,
Coordinator
The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Unit headed by Mendelle T. Berenson,
the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Helen L. Hulen.
Table of Contents
319 NEW DEPOSIT INSTR UMENTS
The introduction of the money market deposit account and the Super N O W account
has hastened the deregulation of interest
rates that commercial banks and thrift institutions may pay on deposits.
327 ALTERNATIVE
IN LENDING
MORTGAGES AND
TRUTH
The role of the Federal Reserve Board is to
regulate the disclosure to consumers of the
terms of alternative mortgages.
333 STAFF
STUDY
"Financial Transactions within Bank Holding Companies" explores extensions of
credit and transfers of assets between holding company banks and their nonbank affiliates.
335 INDUSTRIAL
PRODUCTION
of the International Monetary Fund, before
the Subcommittee on Financial Institutions
Supervision, Regulation and Insurance of
the House Committee on Banking, Finance
and Urban Affairs, April 21, 1983.
346 Anthony M. Solomon, President, Federal
Reserve Bank of N e w York, reviews the
recent efforts of the Federal Reserve System in its surveillance of the government
securities market and concludes that the
surveillance role of the Federal Reserve
should not be formalized and expanded at
this time, before the Subcommittee on Domestic Monetary Policy of the House Committee on Banking, Finance, and Urban
Affairs, April 25, 1983.
356 Chairman Volcker discusses the evolution
in markets for banking and other financial
services in light of a reexamination of the
existing legislative framework, before the
Senate Committee on Banking, Housing,
and Urban Affairs, April 26, 1983.
Output rose about 2.1 percent in May.
365
337 STATEMENTS
TO
CONGRESS
Paul A. Volcker, Chairman, Board of Governors, updates the Federal Reserve's official monetary policy report to the Congress,
before the H o u s e Committee on Banking,
Finance and Urban Affairs, April 12, 1983.
340 J. Charles Partee, Member, Board of Governors, discusses a federal preemption of
state usury laws governing interest rates on
business, agricultural, and consumer loans,
before the Senate Committee on Banking,
Housing, and Urban Affairs, April 12,1983.
341 Governor Partee discusses various issues of
supervision and regulation of international
lending and reiterates Federal Reserve support for prompt congressional action on the
proposed increase in the financial resources
ANNOUNCEMENTS
Procedures to eliminate or price the remaining categories of Federal Reserve check
float.
Interim fee schedule for use in a pilot program for making corporate trade payments
by electronic means.
Proposal to add depository institutions to
the Federal Reserve check collection services as part of a program to accelerate the
collection of checks.
Amendments to Regulation D (Reserve Requirements of Depository Institutions) to
reduce the deposit-reporting burden for
small institutions. (See Legal Developments.)
Proposed legislation for simplifying the
Consumer Leasing Act.
A70 BOARD OF GOVERNORS
Change in Board staff.
Admission of six state banks to membership
in the Federal Reserve System.
369 LEGAL
DEVELOPMENTS
Amendments to Regulations D, E, Z; various bank holding company and bank merger
orders; and pending cases.
Al
FINANCIAL
AND BUSINESS
STAFF
A72 FEDERAL OPEN MARKET
COMMITTEE
AND STAFF: ADVISORY
COUNCIL
A73 FEDERAL RESERVE BANKS,
AND OFFICES
A74 FEDERAL RESERVE
PUBLICATIONS
BRANCHES,
BOARD
STATISTICS
A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A54 International Statistics
A69 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND SPECIAL
TABLES
AND
A76 INDEX TO STATISTICAL
TABLES
A78 MAP OF FEDERAL RESERVE
SYSTEM
New Deposit Instruments
Frederick T. Furlong of the Board's Division of
Research and Statistics prepared this article
with research assistance from Alan Boyce and
Guido van der Ven.
The deregulation of the interest rates that commercial banks and thrift institutions may pay on
deposits has been hastened in recent months by
the introduction of two new accounts. The money market deposit account, which institutions
were permitted to offer beginning in December
1982, has been the more important. The Depository Institutions Deregulation Committee authorized commercial banks and thrift institutions to
issue this new instrument in accordance with the
Garn-St Germain Depository Institutions Act of
1982. That act provides for a deposit account that
is directly equivalent to and competitive with
money market mutual funds. The committee also
permitted commercial banks, savings and loan
associations, and mutual savings banks to offer
the so-called Super N O W account effective early
in January 1983.
Neither of these new instruments is subject to
a ceiling on interest rates for accounts that
maintain an average balance of at least $2,500;
the period over which the average is determined
can be up to one month. Depositors with a
money market deposit account (MMDA) can
make only six automatic or telephone transfers
per month (three of them by check), but they are
permitted unlimited withdrawals in person. In
keeping with the provisions of the Garn-St Germain Act, the Depository Institutions Deregulation Committee (DIDC) did not restrict the types
of depositor that may hold MMDAs. The Super
N O W account, on the other hand, is fully transactional, but is available only to individuals,
governmental units, and certain nonprofit organizations. For both types of account, an interest
rate can be guaranteed for up to a month, and
MMDAs can be issued with a specific maturity of
up to 30 days.
In a short time, the new accounts, particularly
the M M D A , have attracted large volumes of
funds from other accounts at depository institutions and from nondeposit instruments. The initial reaction of commercial banks and thrift institutions to this development was not surprising.
Depository institutions generally deemphasized
their reliance on managed liabilities and built up
their liquid asset holdings, while savings and loan
associations stepped up mortgage-related lending
as well. However, over time, the buildup of
balances in short-term market-rate accounts at
commercial banks and thrift institutions could
well affect the behavior of the cost of funds at
these institutions and could lead to significant
changes in asset and liability management. Moreover, as apparently intended by the Congress,
these short-term market-rate deposit instruments
have affected the competitive position of depository institutions relative to other financial intermediaries.
GROWTH IN THE NEW
ACCOUNTS
The reaction of depository institutions and depositors to the introduction of M M D A s was
swift. Flows into M M D A s averaged more than
$35 billion per week in the first six weeks that the
accounts were offered. In late March and early
April, the weekly flows were down to about $5
billion, which is slow only relative to the unprecedented pace set in the early stage of MMDA
offerings. As table 1 shows, M M D A balances
totaled more than $340 billion by mid-April 1983,
a mere four months after the introduction of the
instrument. In comparison, it took nearly two
years for the popular six-month money market
certificate (MMC) to reach that level. The bulk of
MMDA balances represent deposits of individuals; businesses and other institutional investors
account for about 15 percent of all M M D A funds,
the bulk of which they hold at commercial banks.
320
Federal Reserve Bulletin • May 1983
The introduction of MMDAs resulted in the
complete removal of interest-rate ceilings for a
significant fraction of deposits. The MMDAs
outstanding at commercial banks in March accounted for more than one-fourth of the combined savings, small-denomination time deposits, and MMDAs at those institutions. The
fraction for savings and loan associations and
mutual savings banks taken together was about
one-fifth. Moreover, when balances in other
small-denomination ceiling-free accounts—such
as retail repurchase agreements and 7- to 31-day
certificates—and accounts with indexed ceilings—such as six-month MMCs and small savers
certificates—are added to MMDAs, about threefourths of the balances in savings, small-denomination time accounts, and MMDAs at commercial banks as well as at thrift institutions were
earning a market-determined rate of return as of
March 1983.
The performance of Super NOWs has been
overshadowed by the surge in MMDAs. Although most depository institutions are offering
these market-rate transaction accounts, they
have been promoted less heavily and priced less
attractively than MMDAs. As a result, by midApril 1983 balances in Super NOWs totaled only
about $29 Vi billion (table 1). Moreover, the increases in Super NOWs in March and early April
were quite modest compared with those in the
1.
first two months of the year. Nonetheless, as of
mid-April 1983, ceiling-free Super NOWs made
up about one-fourth of the total other checkable
deposits component of M l , which includes balances in regular negotiable order of withdrawal
accounts, automatic transfer accounts, and share
draft accounts at credit unions.
YIELDS ON THE NEW
ACCOUNTS
One obvious factor in the immediate success of
MMDAs was the high introductory interest rates
they bore. Many depository institutions offered
above market interest rates on MMDAs for a
period of time in order to attract deposits, and
then brought yields on MMDAs into closer alignment with other market rates. Yields on MMDAs
at commercial banks and mutual savings banks
are shown in table 2; they are estimates based on
responses from stratified samples, and represent
average rates weighted by MMDA balances at
the institutions. No comparable data are available for savings and loan associations, but comparisons of unweighted averages suggest that
rates on MMDAs at those institutions were close
to rates at mutual savings banks.
As the table shows, average yields on MMDAs
in late December were markedly higher than
rates available on other short-term time deposit
Money market deposit accounts and Super NOW accounts
Amounts in billions of dollars, not seasonally adjusted
Super NOW accounts 2
Money market deposit accounts'
Period
Commercial
banks
Thrift
institutions 3
Total
Commercial
banks
Thrift
institutions 3
8.4
15.2
18.1
4.9
7.5
8.4
13.3
22.7
26.5
16.6
17.6
18.1
18.4
18.7
19.7
20.5
8.0
8.3
8.4
8.4
8.4
9.0
8.9
24.6
25.9
26.5
26.8
27.1
28.7
29.4
Total
Monthly average
1982-December
1983-January
February
March
26.5
114.2
163.3
185.8
16.7
74.9
114.4
134.7
43.2
189.1
277.7
320.5
Weekly average
1983-March
April
2
9
16
23
30
6
13
174.9
180.6
185.3
188.4
190.9
194.2
197.6
125.6
130.6
134.3
136.9
138.4
140.7
143.0
1. Institutions began offering money market deposit accounts on
December 14, 1982.
2. Institutions began offering Super NOW accounts on January 5,
1983.
300.5
311.2
319.6
325.3
329.3
334.9
340.6
3. Includes savings and loan associations, mutual savings banks,
and credit unions.
• ... ,
New Deposit Instruments
accounts and nondeposit instruments. For example, the average yield on MMDAs in December
exceeded the average rate on money market
mutual fund shares by 2Vi to 3 percentage points.
The table also indicates that thrift institutions
offered higher rates on MMDAs than commercial
banks, and that the differential was greater than
the 25 basis points that had been part of the
structure of interest rate ceilings for many years.
By the end of March, yields on MMDAs had
fallen appreciably and were actually below yields
on some short-term deposits and Treasury securities. However, the average rate of return on
MMDAs remained above the average rate on
shares of money market mutual funds, in part
because movements in yields on those shares
tend to lag increases in market interest rates. At
the end of March, the differential between rates
on MMDAs at commercial banks and thrift institutions persisted.
The initial offering rates on Super N O W s on
average were further below rates on MMDAs
than can be explained solely by the cost of
reserve requirements on transaction accounts.
At the end of January, the spread between rates
on Super N O W s and MMDAs averaged 140 basis
points at commercial banks and 170 basis points
at mutual savings banks (table 2). These relatively large spreads reflect the generally less aggres2.
Interest rates on selected instruments
for selected dates
321
sive pursuit by institutions of the Super N O W
account. By the end of March, however, rates on
MMDAs had fallen relative to those on Super
NOWs, and the differential on average was in
line with the cost of reserve requirements. As
with MMDAs, thrift institutions continued to
offer higher rates on Super N O W s than did
commercial banks.
SOURCES OF MMDAS
AND SUPER
NOWS
The MMDA was created to enable commercial
banks and thrift institutions to compete effectively with money market mutual funds. The success
of the MMDA in attracting shares of money
market funds is evident in the contraction experienced by those investment companies in recent
months. Assets of general-purpose and broker/
dealer funds fell about $37 billion between November 1982 and March 1983 (chart 1). At the
same time, assets of institution-only money market funds declined about $6!/2 billion. Given the
relationship of money fund yields to market rates
and the evident interest in equity shares in recent
months, these investment companies as a whole
might have experienced some reduction in assets
in any event. However, the results from surveys
of both households and depository institutions
1. Assets of money market mutual funds
Billions of dollars
Percent, annual rate
1982
1983
Instrument
Dec. 29
Money market deposit
account 1
Commercial banks .
Mutual savings
banks
Super NOWs 1
Commercial banks.
Mutual savings
banks
Six-month money market certificate 1 .
Commercial banks.
Mutual savings
banks
Money market mutual
funds 2
Three-month Treasury
bill3
Jan. 26
Feb. 23
Mar. 30
10.6
9.0
8.3
8.2
11.0
10.0
9.0
8.6
7.6
7.3
7.3
8.3
7.6
7.5
8.4
8.3
8.5
8.9
8.7
8.6
8.8
9.0
8.1
7.8
7.8
7.8
8.4
8.4
8.2
9.0
60
40
1. Average nominal rate based on sample data.
2. Average nominal rate at all money market mutual funds for the
weeks ending on Wednesday.
3. Coupon-equivalent yield.
Institution-only funds
mtmmm
•••• •••
1982
i
•
1983
Combined assets of taxable and tax-exempt money market mutual
funds; monthly averages, not seasonally adjusted.
322
Federal Reserve Bulletin • May 1983
2. Deposits at commercial banks and thrift institutions
Billions
350
300
900
850
800
400
350
Thrift institutions include savings and loan associations, mutual
savings banks, and credit unions.
Monthly averages, seasonally adjusted.
suggest that the contraction in money funds in
recent months primarily reflected shifts to
MMDAs.
Although the diversion of money market fund
shares to MMDAs certainly has been an important channel for new deposits for commercial
banks and thrift institutions, such shifts can
account for only a fraction of total MMDA
balances. Survey results and estimates based on
cross-section econometric models indicate that
most MMDA balances have come from other
deposit accounts, particularly savings and smalldenomination time accounts. Indeed, between
November 1982 and March 1983, savings deposits at all institutions fell a record $48 billion. As
chart 2 shows, the outflows from savings were
most pronounced in January (partly because the
figures are based on monthly averages) and had
subsided noticeably by March. The drop in
small-denomination time deposits for the same
period, at $130 billion, was even more dramatic.
Once again, the outflows were quite large in
January, and, while still sizable, had diminished
by March. For small-denomination time deposits, most of the transfers to MMDAs were from
relatively short-term certificates with marketrelated yields, particularly six-month MMCs.
The overall impact of shifts from savings and
small time deposits likely is understated by the
net change in these deposit categories because
combined balances in such accounts would have
been expected to increase in the absence of
MMDAs.
As chart 2 suggests, the introduction of
MMDAs affected the issuance of large-denomination certificates of deposit (CDs) as well as
core deposits. The drop in the amount of large
CDs outstanding reflects direct shifts to MMDAs
by holders of CDs as well as liability-management decisions by depository institutions to cut
back on issuance of large CDs in the face of
sizable deposit inflows. Thus only a part of the
falloff in large CDs can be viewed as contributing
to the amount of MMDAs outstanding. In fact,
many depository institutions reportedly took
measures to limit the size of MMDAs to prevent
institutional investors from placing large sums on
deposit to take advantage of the high introductory rates. Nevertheless, some large CDs apparently were shifted to MMDAs. These larger
MMDAs likely explain the high average balance
in MMDAs at commercial banks, which in
March was about $23,000. This average balance
is considerably higher than the estimates for the
average size of savings, small-denomination
time, or general-purpose and broker/dealer money fund accounts.
The introductory rates on the MMDA made
this account not only more attractive than money
market mutual funds and other deposit accounts,
but also more attractive than virtually all shortterm market instruments. Household surveys
indicated that some savers transferred funds
from Treasury securities and other interest-bearing market instruments, and MMDA balances
also may have been drawn from mutual funds
other than money funds and from the stock
market. However, the available information does
not permit an accurate estimate of the volume of
MMDAs that came from such market instruments.
New Deposit Instruments
With yields on MMDAs, money market mutual funds, and other short-term investments generally above rates on Super N O W s , these new
fully transactional accounts would be expected
to draw deposits primarily from demand deposit
and regular N O W accounts. Survey data and
econometric cross-section evidence indicate that
the vast bulk of the dollars placed in Super
NOWs did in fact come from other transaction
accounts. Moreover, the funds attracted from
nontransaction accounts evidently were mostly
from savings and time deposits rather than from
nondeposit sources such as money market mutual funds. Because limited funds have been attracted to Super N O W s from sources other than
transaction accounts and some demand deposits
and regular N O W balances have at the same time
been moved into MMDAs, on balance the volume of transaction deposits included in M l may
turn out not to have been greatly affected by the
introduction of the two new accounts. Nevertheless, the availability of a transaction account
earning an explicit yield that can move with
market rates may well affect the behavior of
household transaction balances.
Evidence suggests that Super N O W account
balances generally are much higher than the
$2,500 minimum established by the DIDC. The
average Super N O W account at commercial
banks was about $13,500 in March 1983, compared with an average of a little more than $5,000
for regular N O W s in February (table 3). In
addition, the drop in the average size of regular
NOWs, shown in the table, is consistent with the
shift of balances from larger N O W accounts to
Super N O W s and the maintenance of smaller
accounts as regular N O W s . The greater attractiveness of Super N O W s to depositors with
larger account balances in part may reflect the
3.
Average size of NOW accounts
at commercial banks
Dollars
Date
Super NOWs
1982-November 30 .
1983-January 3 1 . . . .
February 2 8 . . .
March 31
5,746
11,763
14,241
13,478 p
1. Commercial banks outside the Northeast,
n.a. Not available,
p. Preliminary.
Regular NOWs 1
n.a.
5,143
n.a.
323
tendency for some depository institutions to impose service charges that are waived if account
balances are above some threshold level, such as
$5,000 or $10,000.
COMPETITION AMONG
DEPOSITORIES
The MMDA clearly has enabled depository institutions to compete more effectively for funds,
but some institutions may have had more success
4.
Market shares of money market deposit
accounts, March 31, 1983
Percent
Percent of
MMDAs
Type of institution and
deposit class (dollars)
Percent of
combined deposits
before
introduction of
MMDAs 1
Savings
Savings
and
and total
small
time
time
deposits deposits
Total
Personal
Commercial banks
Under 100 million
100 million to 500 million
500 million to 1 billion . . .
1 billion and over
(1)
58.0
13.3
12.1
5.1
27.5
(2)
52.7
11.5
10.4
4.6
26.2
(3)
47.5
18.0
10.4
3.7
15.4
(4)
56.3
16.5
10.9
4.4
24.5
Thrift institutions
Under 100 million
100 million to 500 million
500 million to 1 billion . . .
1 billion and over
41.42
4.0
12.0
6.2
19.2
46.6 3
4.4
13.5
7.0
21.7
52.5
8.0
16.8
7.9
19.8
43.7
6.5
13.6
6.5
17.1
1. Excludes credit unions.
2. Excludes credit unions, which accounted for 0.6 percent of all
MMDAs.
3. Excludes credit unions, which accounted for 0.7 percent of all
personal MMDAs.
than others. H o w did commercial banks and
thrift institutions fare in attracting MMDA balances? And how did smaller institutions perform
relative to larger ones? As of March 30, the share
of commercial banks in the MMDA market was
larger than their share of all savings and small
time deposits before the introduction of the new
account (table 4). Moreover, large commercial
banks and large thrift institutions seem to have
been more successful in capturing a share of the
MMDA market than their smaller counterparts.
The apparent advantage of commercial banks
over thrift institutions may derive in part from
differences in clientele. Business customers may
be more likely than households to shift to
324
5.
Federal Reserve Bulletin • May 1983
Market shares of Super NOW accounts
Thrift institutions
Month
Commercial
banks
Savings
and
loans
Mutual
savings
banks
Credit
unions
Total
All
institutions
Monthly average level
(billions of dollars, not seasonally adjusted)
1983-January .
February
March...
8.4
15.2
18.1
2.9
4.7
5.3
.4
.6
.8
1.6
2.2
2.3
4.9
7.5
8.4
13.3
22.7
26.5
19.5
28.4
30.3
12.4
20.6
23.2
Percent of interest-bearing checkable deposits
1983-January .
February
March...
10.2
18.2
20.9
MMDAs, and business deposits are concentrated
at commercial banks, and so shifts from business
accounts would tend to boost the commercial
bank share of the M M D A market. Indeed, as
table 4 indicates, personal MMDAs were more
evenly distributed between commercial banks
and thrift institutions, although the basic impression that commercial banks and larger institutions captured a relatively high share of MMDAs
remains unchanged.
Any comparison of shares in the MMDA market with shares of savings and small-denomination time deposits could be misleading. Because
MMDAs may be issued in large denominations
and because commercial banks already had the
higher share of large-denomination time deposits, those institutions would be expected to get a
bigger portion of MMDAs shifted from large
CDs. In fact, in a comparison of MMDA shares
with those for total time and savings deposits
before the introduction of the MMDA (table 4),
the advantage of commercial banks over thrift
institutions or of larger institutions over smaller
ones is less apparent.
As in the case of MMDAs, commercial banks
account for most of the Super N O W balances.
However, their share of this instrument may be
somewhat smaller than expected given the concentration of transaction balances at these institutions. In March, Super NOWs accounted for
only about one-fifth of total interest-bearing
checkable deposits at commercial banks, compared with 30 percent at thrift institutions (table
5). The proportion of interest-bearing checkable
deposits held in Super N O W s also varied among
18.5
28.3
30.5
8.5
12.5
16.0
34.0
44.9
46.9
categories of thrift institutions. The high ratio for
credit unions probably reflects a statistical artifact; these institutions could offer ceiling-free
share draft accounts even before the DIDC authorized a Super N O W , and many of them already were paying more than 5VA percent on
transaction deposits, which would automatically
be categorized as Super N O W s .
BALANCE SHEET
AT DEPOSITORY
ADJUSTMENTS
INSTITUTIONS
Although most M M D A balances represent shifts
from other deposit accounts, the inflow of new
deposits to this instrument has been substantial.
These inflows are reflected in the surge of combined savings, small-denomination time deposits, and MMDAs during the first quarter of this
3. Growth in savings, small time deposits, and MMDAs
Percent
Commercial banks
Thrift
Thrift institutions include savings and loan associations, mutual
savings banks, and credit unions.
Annual rates of growth based on seasonally adjusted quarterly
average deposits.
New Deposit Instruments
4. Growth in savings, total time deposits, and MMDAs
Percent
Thrift institutions include savings and loan associations, mutual
savings banks, and credit unions.
Annual rates of growth based on seasonally adjusted quarterly
average deposits.
year, which was particularly pronounced at commercial banks (chart 3). As indicated earlier,
some MMDA funds were shifted directly from
large CDs, while depository institutions, especially commercial banks, sharply reduced their
issuance of large CDs in the wake of the success
of MMDAs. Consequently, the pickup in the
growth of savings and total time deposits (including large CDs) in the first quarter was less
dramatic, though it was still noticeable (chart 4).
5. Net change in selected assets and
liabilities at commercial banks
Billions of dollars
1982
1983
Nondeposit sources of funds consist of net Eurodollar borrowings,
borrowings from other than commercial banks, plus loans sold to
affiliates.
Quarterly average net changes.
325
Besides cutting back on issuance of large CDs,
commercial banks reacted to the surge in
MMDAs by reducing their reliance on other
managed liabilities and by building up liquid
assets. Nondeposit sources of funds at commercial banks fell in the first quarter of this year,
after increasing slightly in the previous quarter
(chart 5). The decline in nondeposit liabilities
was due partly to the combined impact of reduced Eurodollar borrowings and increased
placements in the Eurodollar market. The bottom panel of the chart shows that the strengthening in bank credit during the first quarter reflected a marked expansion in investments, which
included sizable net acquisitions of Treasury
securities. Some of the buildup in liquid securities could be temporary given unexpectedly large
inflows to MMDAs and weakness in the demand
for short- and intermediate-term business credit—and perhaps a hedge against the possibility
that funds may be withdrawn as MMDA rates
fall. On the other hand, with savers shifting from
market instruments to MMDAs, an increase in
overall intermediation by commercial banks
could mean a permanent rise in their security
holdings.
Recent portfolio adjustments at savings and
loan associations were similar in some ways to
those at commercial banks. At federally insured
savings and loan associations net acquisitions of
cash and investment securities, which had been
trending upward for some time, accelerated
sharply in the first quarter of 1983 (chart 6).
However, these thrift institutions do not appear
to have deemphasized their reliance on managed
liabilities to the same degree as commercial
banks. On a quarterly average basis, savings and
loan associations reduced their borrowings (excluding retail repurchase agreements) in the first
quarter of 1983 by less than in the previous
quarter, and in the latter part of the first quarter
of this year these thrift institutions actually began to increase the level of their borrowings. In
addition, while lending at commercial banks remained sluggish, mortgage-related lending at
savings and loan associations picked up noticeably in early 1983. Moreover, the continued
strength in new commitments for mortgage loans
(the bottom panel) probably foretells further
growth in the volume of mortgages extended by
savings and loan associations.
326
Federal Reserve Bulletin • May 1983
6. Federally insured savings and loan associations
SUMMARY
AND
CONCLUSION
Billions of dollars
Net change
^.Nondeposit sources of funds
1
i
i
1
i
i
i
Net change
Cash and investment securities
New commitments for mortgages
Nondeposit sources of funds consist of Federal H o m e Loan Bank
advances and other borrowings, excluding retail repurchase agreements. N e t changes in nondeposit sources of funds, cash and investment securities, and mortgage assets are quarterly averages.
The money market deposit account has clearly
enhanced the ability of commercial banks and
thrift institutions to attract deposits. Besides
attracting new deposits, the rates on the highly
liquid MMDAs induced considerable shifting
from other deposit accounts, particularly savings
and small-denomination time deposits. These
developments thus amounted to a complete
deregulation of interest rates for a large portion
of core deposits. The general reaction of depository institutions to the surge in MMDAs was to
reduce managed liabilities and to build up liquid
assets, while savings and loan associations
stepped up their acquisitions of mortgage assets.
How commercial banks and thrift institutions
will adjust their portfolios in the longer run
remains to be seen, but depository institutions
may be expected to take into account the tendency for MMDAs to increase the sensitivity of the
cost of funds to changes in market interest rates.
The initial impact of Super NOWs has been
less dramatic than that of MMDAs. Flows into
these accounts, which have been comparatively
small, primarily reflect shifts from other transaction accounts. Nevertheless, the introduction of
the account is important: as Super NOWs become a larger share of household transaction
deposits included in M1, they could significantly
affect the behavior of those balances relative to
other economic variables.
•
327
Alternative Mortgages and Truth in Lending
This article was prepared by Susan M. Werthan
of the Board's Division of Consumer and Community Affairs.
Alternative mortgage instruments—mortgages
that differ from standard fixed-rate, level-payment mortgages—have become popular in recent
years. High inflation and high, volatile interest
rates have made the standard fixed-rate mortgage
unattractive to many lenders and borrowers. In
order to shift some of the risk of volatile interest
rates to borrowers, lenders have devised a variety of new financing plans. Mortgages with adjustable or renegotiable interest rates allow lenders
to change periodically the interest rate charged
to borrowers as market interest rates fluctuate,
and short-term mortgages effectively serve the
same purpose. Other financing plans, such as
growing-equity mortgages, have fixed interest
rates but provide for increasing payments and
shorter loan maturities.
Some types of alternative morgages make it
easier for borrowers to qualify for loans when
interest rates are high. In particular, plans with
graduated-payment
features
reduce
initial
monthly payments and provide for higher payments in the later years of the loan term, when
the borrower's income can be expected to be
higher. Some mortgages embody features of both
adjustable-rate and graduated-payment contracts, allowing lenders to reduce their interest
rate risk and making mortgage credit more affordable for home buyers.
This article examines the role of the Board of
Governors of the Federal Reserve System in
regulating alternative mortgages. Although the
Board does not regulate the types of mortgages
that may be offered by lenders, it is responsible for implementing the Truth in Lending Act
through Regulation Z. Thus the primary function
of the Federal Reserve regarding alternative
mortgages is to regulate the disclosure of their
terms to consumers.
CONSUMER
CONFUSION
Disclosures about alternative mortgages are particularly important because the complexity of
some arrangements and the wide variety of alternative mortgages in the marketplace seem to
confuse consumers. Moreover, recent legislative
changes that have given more lenders authority
to offer alternative mortgages could result in
more varieties of plans and still more confusion.
The confusion is substantiated by a recent
survey that was commissioned by the Federal
National Mortgage Association (FNMA). This
nationwide survey was conducted in March and
April 1982 to help F N M A develop new mortgage-purchase programs. The survey notes that
most of the consumers who are aware of the
newer types of mortgages do not understand how
these instruments work. This finding is also
noted in The Report of the President's
Commission on Housing, published in 1982. That report
suggested that the government has a role in
educating consumers about alternative mortgages.
A brief look at some alternative mortgages
reveals why consumers are confused. Generally,
such mortgages permit the interest rate, the
payment amount, the term of the loan, the principal amount of the loan—or all of these features—
to vary. For instance, in a graduated-payment
adjustable-rate mortgage, payments vary as a
result of adjustments both in interest rates and
scheduled payments. Because the early payments do not cover the amount of interest due,
adjustments are also made to the principal
amount of the loan. A growing-equity mortgage
involves increases in scheduled payments without any adjustments in interest rates: the increases in payments are applied to principal, thus
reducing the loan term.
Other alternative mortgages involve parties
besides traditional institutional lenders, whose
participation calls for new and sometimes complex loan terms. For example, in a sluggish sales
328
Federal Reserve Bulletin • May 1983
market, a developer may agree to pay a lender to
offer below-market-rate or zero-rate mortgages
to purchasers of the developer's homes. These
" b u y d o w n " arrangements may take different
forms. A contract between the lender and the
developer may specify an amount paid, and that
amount may be translated into a below-market
rate in the borrower's note; or the lender may
simply send a letter about the buydown to the
borrower and not reflect it in the note.
Two recent developments may broaden the
already wide variety of alternative mortgage instruments. First, the federal regulations governing adjustable-rate mortgages have been liberalized. Regulations that have been promulgated by
the Federal Home Loan Bank Board (FHLBB),
the Office of the Comptroller of the Currency
(OCC), and the National Credit Union Administration allow federally chartered lenders, including savings and loan associations, banks, and
credit unions, to offer adjustable-rate mortgages.
Gradually, during the past few years, amendments to these regulations have removed virtually all of the restrictions on adjustable-rate features so that lenders may structure their own
plans and adjust the interest rate and payments in
any way they wish.
Second, lenders that are not federally chartered are authorized to make loans in accordance
with federal regulations governing alternative
mortgages. Title VIII of the Garn-St Germaine
Depository Institutions Act of 1982 (DIA) allows
all housing creditors to make, purchase, and
enforce alternative mortgages. State laws that
have restricted state-chartered lenders from
making alternative mortgage loans are preempted unless state law overrides the DIA provision
within three years.
TRUTH IN LENDING AND ITS
TO MORTGAGES
APPLICATION
The Truth in Lending Act requires creditors to
disclose to consumers the terms of all consumer
credit transactions. These disclosures permit
consumers to determine the cost of different
credit transactions and to shop for the best
terms. The act requires creditors to disclose
basic credit terms, such as the payment amounts,
the finance charge, and the total of payments.
However, the annual percentage rate (APR) is
the most important disclosure. It blends the
interest rate and other credit charges, such as
mortgage insurance, points, and loan origination
fees, into a uniform measure of cost.
Consumers can use the APR to compare credit
costs at various points in the shopping process,
such as checking advertisements, applying for a
loan, or closing a loan. First, the Truth in Lending Act requires that any rate of finance charge
stated in an advertisement must be an APR, and
thus makes it easy for consumers to compare
credit terms early in the shopping process. Second, for certain purchase-money mortgages that
are subject to the Real Estate Settlement Procedures Act, a creditor must provide disclosures
within three days of receiving a consumer's
application. Unlike most of the other changes
made by the Truth in Lending Simplification and
Reform Act of 1980, this provision imposes an
additional requirement on creditors who, for
most transactions, need not provide disclosures
until consumers become obligated on a transaction. Because of the importance of home purchases and the large sums involved, the Congress decided that this provision was necessary
to give consumers more time to shop for purchase-money mortgages than for other transactions. Third, before a consumer becomes contractually obligated on a credit transaction, a
creditor must provide a complete set of truth in
lending disclosures. Although this point is late in
the shopping process, this procedure still offers
the consumer a chance to withdraw from the
transaction.
How much consumers use truth in lending
disclosures as a tool for comparing alternative
mortgage plans is difficult to assess. Those disclosures are not well tailored to many alternative
mortgages because they are based on the underlying assumption in the statute that a loan will
run to maturity on the terms established at the
outset of the transaction. In fact, most mortgages—even traditional ones—do not run to maturity; moreover, alternative mortgages are
based on the very assumption that the terms will
change. For instance, an adjustable-rate mortgage may have complex provisions governing the
amount of rate changes and the indexes that
trigger changes, which are not reflected in the
APR. Nevertheless, instead of taking possible
Alternative
rate changes into account, creditors calculate the
APR on the assumption that the initial rate will
remain in effect through the life of the mortgage
(although creditors must give an example of an
increase in payments or longer maturity of the
loan that could result from a change in rate).
Although available evidence suggests that consumers are generally aware of credit rates and
use them in shopping for credit, no studies have
specifically measured whether consumers understand and use the APR in comparing mortgages.
On the face of it, the disclosure of the APR has
some value for consumers who are comparing
the terms of various alternative mortgage plans.
No other single measure expresses complex
credit terms in a uniform way, a factor of particular importance in a mortgage transaction, which
is the single most significant credit decision a
consumer makes.
SPECIFIC DISCLOSURES
MORTGAGES
FOR
ALTERNATIVE
Whatever the merits of truth in lending disclosures in alternative mortgages, the Board has the
task of matching the law's requirements with
plans emerging in the marketplace. It uses the
staff commentary to Regulation Z to explain the
requirements of that regulation and to apply its
provisions to specific alternative mortgage plans.
The commentary is to be updated at least annually to address new financing arrangements as they
arise. Updating of the material concerning mortgages has been particularly helpful because of
rapidly changing mortgage instruments. Moreover, the commentary is important to creditors
because those who follow its requirements may
rely on it as a defense in civil suits for truth in
lending violations.
Variable-Rate
Disclosures
Several types of alternative mortgages require
variable-rate disclosures under Regulation Z.
Creditors must give consumers specific information about a variable-rate feature in any transaction in which the APR may increase after consummation of the transaction. This information
includes the circumstances under which the rate
Mortgages
and Truth in Lending
329
may increase, any limitation on that increase, the
effect that an increase may have on payments or
other loan terms, and an example of payment
terms that could result from an increase. All the
calculations are based on the rate in effect at the
beginning of the transaction. Rather than requiring creditors to predict movements in a rate, the
regulation adopts the view that it is more helpful
to consumers to describe the circumstances that
will lead to rate changes and give an example of a
payment change that could result from a rate
increase.
The variable-rate provisions in Regulation Z
are used extensively in providing disclosures to
consumers because the commentary applies
them not only to typical adjustable-rate mortgages, but also to several other types of alternative mortgages—for example, rollover mortgages
(ROMs), also called renegotiable-rate mortgages.
A ROM is a series of short-term notes (each with
a fixed interest rate) secured by a long-term
mortgage, and so the APR will not increase
during the term of a note. The notes in the series
typically fall due every three to five years during
the term of the underlying mortgage, and at those
times the interest rate is "renegotiated" and a
new note reflecting that rate is signed. When a
consumer finds the new rate proposed by the
lender unacceptable, he or she must find another
lender to refinance the loan to pay off the balance
due to the original lender.
For truth in lending purposes, the ROM is
considered a single long-term variable-rate mortgage, rather than a series of fixed-rate mortgages.
For example, in a ROM involving a series of six
five-year loans with the initial loan at a 12
percent interest rate, the truth in lending disclosures are based on the 30-year term of the entire
series of notes, rather than the five-year term of
the initial loan. Although the disclosed payment
schedule, finance charge, total of payments, and
APR are based on the initial 12 percent rate, the
disclosures must also state that the rate may
increase every five years according to a specified
index, with a corresponding increase in the consumer's monthly payment. The other variablerate information about limits on increases and an
example of a payment change also must be given.
Because the information about rate increases is
provided to the consumer at the beginning of the
loan, the creditor need not provide any addition-
330
Federal Reserve Bulletin • May 1983
al truth in lending disclosures when the interest
rate is renegotiated.
The shared-appreciation mortgage (SAM) is
another type of alternative mortgage that technically is not a variable-rate mortgage providing for
periodic rate adjustments but nonetheless is subject to the variable-rate disclosures required by
truth in lending. Also known as an equity-participation mortgage, this plan involves a short-term
loan with a large balloon payment, typically due
in ten years. The creditor offers a fixed belowmarket rate of interest, and the consumer agrees
to pay the lender a specified share in the appreciated value of the home at the end of the loan
term. If the consumer sells the home sooner, the
share must be paid then. If the property is not
sold before the note matures, it is appraised and
the consumer must pay the lender a share of its
appraised value or refinance the amount due. (If
the home has depreciated in value, the lender
collects only the principal amount due at the time
of sale or at maturity.)
The commentary requires that the creditor
disclose several details of the shared-appreciation feature. Although the disclosures are based
on the below-market interest rate during the term
of the loan, the creditor must disclose that the
rate may increase at the end of the loan term or
upon sale of the home, that any increase will be
collected in a lump-sum payment to the lender,
and that the lender's share in the appreciated
value is limited to a specified amount. An example of the dollar amount of appreciation that may
be due to the lender also must be provided..
Although this format calls for calculations based
on the below-market interest rate, it at least puts
a consumer on notice that a very large payment
may be due to the lender at a later time, even if
the home is not sold. Such information is important because should the consumer wish to keep
the property, he or she will have to refinance the
loan to make that payment.
Growing-equity mortgages (GEMs) may be
treated as variable-rate mortgages in some cases.
Although GEMs provide for a fixed rate of
interest, the monthly payments increase annually
during the term of the loan. Because the interest
rate remains constant while the payments increase, the principal is repaid more quickly than
it would be in a conventional mortgage. For
instance, a GEM may be paid off in full after 12
years, in contrast to 25 years for a fixed-rate
mortgage at the same interest rate.
The commentary provides that disclosures like
those for variable-rate mortgages may be made
by lenders offering GEMs in which the payments
cannot be determined at the outset. For instance,
this option can be used for GEMs with payments
tied to the Commerce Department's index of
disposable income. The disclosures are calculated using the fixed interest rate and initial payment for the entire term of the loan, even though
the term will be much shorter because of the
annual increases in payments. However, creditors must disclose information about the payment increases, including the index to which
increases are tied, any limitation on the amount
of those increases, and an example of an increase. If creditors do not use this format, the
commentary permits them to estimate the
amount of annual increases in payments and to
reflect those amounts in the payment schedule.
In this option the disclosure statement reflects
the shortened term of the loan. The creditor must
indicate that these disclosures are estimates, but
need not give any information about the index
used to adjust payments.
However, some GEM plans involve payments
that can be determined at the outset, and the
variable-rate disclosure is not applicable to them.
For instance, in GEMs that call for a fixed annual
increase of 4 percent in payments, each successive level of payments must be disclosed, along
with the APR based on the varying payments and
the shortened term of the loan.
The treatment of ROMs, SAMs, and certain
GEMs as variable-rate mortgages illustrates the
Board's policy of avoiding the proliferation of
complex rules for highly specific transactions.
The commentary represents instead an attempt
to apply the existing rules to new mortgage
forms. Even though ROMs, SAMs, and GEMs
do not contain an APR that may increase during
the term of the transaction, the commentary
likens them to variable-rate mortgages and fits
them into existing rules. The rationale that applies to variable-rate disclosures applies to disclosures for these mortgage plans as well. Because creditors cannot accurately predict the
movement of various indexes or increases in
home prices, they are permitted in all of these
transactions to calculate their disclosures on the
Alternative Mortgages and Truth in Lending
initial rate as long as the required information
about future changes accompanies those disclosures.
Exemption
from
Variable-Rate
Disclosures
Even though they fit the definition of a variablerate mortgage embodied in Regulation Z, some
mortgages are exempt from the disclosure requirements for that type of instrument because
creditors are subject to the extensive disclosure
requirements of other federal regulations. These
creditors must give all the other truth in lending
disclosures but need not provide the variablerate information. The Board provides the exemption to avoid duplicate disclosure requirements.
Three types of creditors that extend adjustable-rate mortgages qualify for this exemption:
first, creditors that are required to comply with
variable-rate regulations issued by other federal
agencies, such as federal savings and loan associations and national banks; second, state-chartered creditors that are required by state law to
comply with those regulations; and third, housing creditors that are specially authorized by the
DIA to extend mortgages in accordance with
those regulations.
The regulations issued by the FHLBB and the
OCC specify the information that must be provided to consumers. For instance, both agencies
require lenders to explain in writing how the
index used affects the interest rate and payments, and to give a source for the index values.
(The OCC also requires lenders to include a tenyear series of the index.) Creditors must give an
example of the way the payment terms might
change during the loan; and they must provide
this information to consumers no later than the
time of the loan application, which is earlier than
required under truth in lending. Because these
other regulations require that more detailed variable-rate information be provided to consumers
in time to be used for shopping purposes, no
variable-rate disclosures are required under truth
in lending.
Disclosures
for Buy
downs
The commentary also contains special disclosure
rules for other types of alternative mortgages. In
331
particular, guidelines are established for buydowns, of both the third-party and the consumer
type. A third-party buydown often involves a
developer who promotes sales by making a lumpsum payment to a lender in exchange for which
the lender collects a below-market rate of interest for the first few years of a mortgage. The fee
from the developer allows the lender to earn a
market yield. It is typically kept in an escrow
account from which withdrawals are made to
supplement the consumer's monthly payments.
At the end of the buydown period, the consumer
becomes liable for the entire amount of the
monthly payments.
The disclosures required in third-party buydown arrangements depend on whether the credit contract between the lender and the consumer
reflects the buydowns. In many cases the buydown agreement between the lender and the
third party is an informal side agreement that is
not a legal modification of the credit contract.
Thus that contract legally binds the consumer to
the nonsubsidized interest rate, and the truth in
lending disclosures do not reflect the buydown.
Because technically the consumer could be held
liable for payments at the higher rate, the disclosure calculations are based on that rate for the
entire term of the transaction. On the other hand,
if the credit contract itself reflects the buydown
agreement, the disclosures reflect the lower interest rate and payment amount for the buydown
period.
A different disclosure rule applies if the consumer pays the fee to buy down the rate; then the
truth in lending disclosures must always reflect
the buydown amount. Even if the buydown
agreement is contained in a document completely separate from the credit contract, it must be
reflected in the disclosures. The fee must be
treated as a prepaid finance charge, and the
payment schedule must reflect the lower payments during the buydown period. The APR will
be affected by the prepaid finance charge and the
varying payment streams.
The commentary also lays down special rules
on advertising buydowns. Generally, the truth in
lending rules require that advertisements contain
the same information as the disclosure statement
does. But if this requirement were strictly applied, many advertisements of third-party buydowns could not show the buydown. This situa-
332
Federal Reserve Bulletin • May 1983
tion would occur when a lender's credit contract
with a consumer did not reflect a buydown
agreement between that lender and a third party.
Therefore, the commentary permits advertisements to state the bought-down interest rate as
long as they also show the period during which
the initial rate applies, the interest rate that
applies to the balance of the loan term, and the
correct APR. The lower monthly payments for
the buydown period also may be shown without
triggering the additional disclosures that would
normally be required by the regulation. This rule
allows developers or other parties in a buydown
arrangement to advertise the lower interest rate
to consumers.
CONCLUSION
Although the economic conditions that stimulated the use of alternative mortgages have eased
somewhat in recent months, lenders may continue to market these plans to minimize the problems posed for borrowers and investors by traditional long-term fixed-rate mortgages. Promoting
consumer understanding of these relatively new
mortgage forms through disclosures is important,
especially in view of the evidence of consumer
confusion. When consumers undertake adjustable-rate mortgages subject to other federal disclosure requirements, they receive valuable information without truth in lending disclosures. In
other cases, truth in lending disclosures may be
the only explanation of contractual terms that
they get.
Administering truth in lending for alternative
mortgages is difficult for the Board because a set
of disclosure rules may not remain applicable as
new programs are continually devised. In particular, the assumption of truth in lending calculations that a loan will run to maturity on the terms
in effect at its outset does not fit most alternative
mortgages. As new programs are marketed, the
Board must determine whether consumer understanding is served better by fitting them into the
existing disclosure rules or by developing new
rules. Specially tailored new rules, although
technically more accurate, would add to the
complexity of the truth in lending rules and could
result in confusing disclosures for consumers.
They might thus add to the confusion they were
intended to alleviate.
•
333
Staff Studies
The staffs of the Board of Governors of the
Federal Reserve System and of the Federal
Reserve Banks undertake studies that cover a
wide range of economic and financial subjects.
In some instances the Federal Reserve
System
finances similar studies by members of the academic
profession.
From time to time, papers that are of general
interest to the professions
and to others are
selected for the Staff Studies series. These papers are summarized—or,
occasionally,
printed
in full—in the F E D E R A L R E S E R V E B U L L E T I N .
STUDY
In all cases the analyses and conclusions
set
forth are those of the authors and do not necessarily indicate concurrence by the Board of Governors, by the Federal Reserve Banks, or by the
members of their staffs.
Single copies of the full text of each of the
studies or papers summarized in the B U L L E T I N
are available without charge. The list of Federal
Reserve Board publications at the back of each
B U L L E T I N includes a separate
section
entitled
"Staff Studies"
that lists the studies that are
currently
available.
SUMMARY
FINANCIAL
TRANSACTIONS
WITHIN BANK HOLDING
COMPANIES
John T. Rose and Samuel H. Talley—Staff, Board of Governors
Prepared as a staff paper in early 1983
In the past fifteen years, most of the nation's
major banks have adopted the holding company
form of organization and have subsequently expanded by acquiring banks and nonbank firms
engaged in such activities as mortgage banking,
consumer finance, leasing, and factoring. One
aspect of the bank holding company structure
that has received increasing attention in recent
years—both as a topic for research and as a
matter of public interest—concerns financial
transactions between affiliates within the holding
company organization.
This study explores financial transactions
within bank holding companies in both a theoretical and an empirical context. In theory, financial
transactions between two affiliates of a holding
company may be expected whenever the two
units operating individually do not have the same
equilibrium level of marginal revenue and marginal cost; that is, one affiliate has both a higher
marginal return on investments and a higher
marginal cost of funds than the other when each
separately is in equilibrium. Thus the direction of
the flow of f u n d s between bank and nonbank
affiliates within a holding company depends on
the relative configurations of the marginal revenue and marginal cost functions of the two
sectors of the organization.
Market and regulatory considerations point to
a lower marginal cost function for banks relative
to their nonbank affiliates, but are ambiguous as
to whether banks have a higher or lower marginal
revenue function than the nonbank units. As a
result, the anticipated direction of fund flows
between the two sectors of a holding company is
also ambiguous.
In order to determine the recent flow of funds
between holding company banks and their nonbank affiliates, data were collected on two major
types of interaffiliate financial transactions—extensions of credit and transfers of assets—over
the 1975-80 period. The data generally point to a
334
Federal Reserve Bulletin • May 1983
net downstream flow of funds from the nonbank
sector to the bank sector of a holding company.
This pattern is evident in both interafliliate extensions of credit and transfers of assets, and
implies that holding company banks generally
have a higher marginal revenue function than
does the nonbank sector as well as a higher
equilibrium level of marginal revenue and marginal cost when each sector is operating separately.
The net downstream flow of funds is generally
stronger in the case of extensions of credit than
transfers of assets. In part, this result may reflect
the restrictions on upstream credit extensions
imposed by section 23A of the Federal Reserve
Act. Specifically, the fact that banks did not
extend large amounts of credit to their nonbank
affiliates during the period of study is consistent
with the claim of bankers that the collateral
requirements of section 23A have represented a
real constraint on such lending. In this regard,
recent legislation enacted by the Congress substantially expands the types of collateral that
banks can accept when lending to their affiliates.
Therefore, the flows of funds within bank holding
companies in the future may be significantly
different from the general patterns observed in
this study.
•
335
Industrial Production
Released for publication
May 13
Industrial production increased an estimated 2.1
percent in April following advances of 1.2 percent in March, 0.4 percent in February, and 1.6
percent in January; the increases in each of these
three recent months were revised upward 0.1
percent. Gains in output in April were widespread, and large advances occurred in the pro-
1977
1979
1981
1983
duction of durable and nondurable materials,
consumer goods other than autos, and construction supplies. The increase in April brought the
level of the total index to 142.6 percent of the
1967 average, almost 6 percent above the November 1982 low, but still about 7 percent below
its high in July 1981.
In market groupings, production of durable
consumer goods in April advanced more than 3
1977
1979
1981
All series are seasonally adjusted and are plotted on a ratio scale. Auto sales and stocks include imports. Latest figures: April.
1983
336
Federal Reserve Bulletin • May 1983
1967 = 100
Percentage change from preceding month
1983
Grouping
Mar.p
1982
Apr.
e
Dec.
1983
Jan.
Feb.
Mar.
Apr.
Percentage
change,
Apr. 1982
to Apr.
1983
Major market groupings
Total industrial production
139.7
142.6
.2
1.6
.4
1.2
2.1
1.7
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment..
Defense and space . . .
Intermediate products ..
Construction supplies
Materials
141.9
140.3
144.7
135.0
148.6
144.1
117.8
147.4
132.1
136.5
144.5
142.9
147.7
139.3
151.0
146.7
119.1
150.5
135.5
139.5
.6
.9
.5
1.0
.3
1.2
2.0
-.2
-.3
-.5
.7
.4
1.1
4.5
-.1
-1.0
.4
1.6
3.3
3.3
-.3
-.6
.2
2.1
-.5
-2.6
-.3
1.0
2.0
1.7
1.0
.8
.6
.4
.7
.9
1.6
1.6
1.9
1.6
1.8
1.9
2.1
3.2
1.6
1.8
1.1
2.1
2.6
2.2
1.1
.2
3.9
6.6
3.0
-11.0
11.1
4.7
9.6
2.4
Manufacturing
Durable
Nondurable
Mining
Utilities
139.9
125.9
160.1
113.7
164.8
142.9
129.0
163.1
113.4
167.3
.4
.5
.2
1.4
-1.5
1.4
1.8
.9
-1.6
1.9
2.1
2.5
1.9
-.3
1.5
3.0
1.8
4.5
-15.4
-2.2
Major industry groupings
p Preliminary.
e Estimated.
1.0
1.0
.8
-5.3
-.8
NOTE. Indexes are seasonally adjusted.
percent as home goods, particularly appliances
and carpeting and furniture, registered strong
gains. Auto assemblies edged up to an annual
rate of 5.9 million units from a rate of 5.8 million
in March. Output of nondurable consumer goods
increased 1.6 percent as all major components
rose. Production of business equipment increased further by almost 2 percent, reflecting
sizable gains in manufacturing, commercial, and
transit equipment; however, building and mining
equipment declined again. Output of defense and
space equipment increased 1.1 percent. Production of construction supplies continued to recover rapidly, rising 2.6 percent in April.
Output of materials increased 2.2 percent in
April as both durable and nondurable goods
materials rose sharply further. Among durable
materials, which have advanced more than 13
percent since the trough, substantial gains oc-
1.6
2.2
1.2
3.0
-.7
curred in all major components. Within the nondurable materials, increases in output were pronounced in chemicals and textiles. Production of
energy materials increased 1 percent as generation of electricity rose.
In industry groupings, output of total manufacturing advanced 2.1 percent in April and was 6.6
percent above the low in November 1982. Production of durable manufactures continued to
increase sharply with the most notable gains in
the primary metals, electrical machinery, furniture, and lumber industries. Output of nondurable manufactures also rose strongly—almost 2
percent—with sizable increases in the textile,
chemical, petroleum products, and rubber and
plastics products industries. Mining activity
edged down further as oil and gas well drilling
declined. The output of electric and gas utilities
rose 1.5 percent in April.
337
Statements to Congress
Statement by Paul A.
of Governors of the
before the Committee
Urban Affairs, U.S.
April 12, 1983.
Volcker, Chairman, Board
Federal Reserve
System,
on Banking, Finance and
House of
Representatives,
I welcome the opportunity to meet again with
this committee to discuss the objectives and
conduct of monetary policy. The Federal Reserve's official monetary policy report to the
Congress was submitted in February. 1 Given the
extensive nature of that report, my earlier testimony before the Senate Banking Committee, and
your request to be brief, my comments today will
be limited largely to updating the previous report.
When the Federal Open Market Committee
(FOMC) was considering its annual growth
ranges for money and credit in early February,
incoming economic data were suggesting that a
recovery was probably beginning. Price data had
for some time shown an encouraging drop in
inflation, and a significant downward adjustment
in petroleum prices appeared likely. The general
view of the FOMC was that a moderate expansion in activity was likely this year and that this
upturn would be consistent with continuing progress against inflation.
Subsequent developments have been consistent with that outlook. The pace of recovery has
been uneven from month to month; but this is not
out of the ordinary, and production, employment, and spending all have moved up significantly. The size of the pickup in home building
has been especially notable, coming as it has in
the context of mortgage rates that are still high
by historical standards. Inventory liquidation,
which took place at a high rate in late 1982 and in
January of this year, appears to be subsiding,
providing short-term impetus to activity.
1. "Monetary Policy Report to Congress," Federal Reserve
Bulletin, vol. 69 (March 1983) pp. 127-40.
The major sector that is continuing to lag is
business capital spending, and exports remain
depressed. Sluggish capital spending is not unusual during the early stages of an upturn, and
exports are reflecting in part relatively slow
economic performance abroad. But developments in those sectors also emphasize the remaining risks and uncertainties in the mediumterm outlook, related in substantial part to the
actual and potential pressures on interest rates
and financial and foreign exchange markets
growing out of the prospects for continuing huge
federal deficits and remaining inflationary concerns.
Currently, price performance has, if anything,
been better than anticipated. Consumer prices
were essentially unchanged between December
and February, while producer prices declined
about 1 percent over that period. I recognize that
declines in energy prices have been a major
factor in this recent price behavior, and the data
clearly overstate the progress that has been made
in reducing the underlying trend of inflation. But
in recent quarters, wage increases overall have
moderated further to annual rates of 4 to 5
percent, providing, together with increases in
productivity, a base for further slowing in unit
labor costs.
At the same time, however, it is a troubling
fact that a few recent wage settlements seem
widely out of keeping with recent favorable price
trends. Special considerations apparently influenced those settlements, but a tendency toward
generalization of cost-increasing wage bargains
would clearly impair longer-term inflationary
prospects and ultimately the sustainability of
recovery.
The simple fact is that we have come a long
way in setting the stage for noninflationary expansion in which unemployment will decline and
workers can again enjoy lasting increases in real
income. But that process needs to be nurtured
with care and discipline.
338
Federal Reserve Bulletin • May 1983
In no area is that discipline required more than
in the federal budgetary process. I take encouragement from the successful effort to reach a
compromise on the social security legislation,
helping to reestablish the financial viability of
that system. But that is only a small step toward
dealing with the structural budget deficit that
looms ahead. The coming weeks will be critical
to that effort, and your decisions are bound to
have a large bearing on the outlook for interest
rates.
Our monetary targets for the year were set out
in detail in my earlier statements. As indicated
earlier, after a period of considerable institutional and other distortions in monetary relationships, those objectives will be reviewed as necessary in the light of all the evidence about the
relationships between money and credit growth,
on the one hand, and economic activity and
inflation, on the other. Deposit flows in response
to the advent of the money market deposit and
Super NOW accounts have been massive. As
expected, these inflows have had a major impact
on the growth rates of some of the aggregates—
particularly M2. More broadly, for much of 1982
and continuing into 1983, movements in "velocit y " have deviated significantly from past patterns. Necessarily in these circumstances, we
have put a greater premium on judgment and less
on "automaticity" in our operational decisions
in responding to movements in the aggregates in
recent months.
Starting with M3, the broadest monetary aggregate, growth appears to have been affected relatively little by the new instruments, as banks and
thrift institutions responded to the stronger inflows into the new accounts included in M2 by
running off a portion of their large certificates of
deposit (CDs). In addition, declines in the money
fund component that is included only in M3 also
have offset part of the strength in M2 balances.
Taking account of somewhat slower growth in
March, the current level of M3 is very near the
upper end of the FOMC's 6V2 to 9'/> percent
annual range.
M2 has been most distorted by the impact of
the new accounts. Precise calculation of the
amount of funds diverted into that aggregate
from assets not included in M2 is simply not
feasible, and for that reason the target range set
in February for that aggregate pertains to the
period after the first quarter, by which time the
distortions are expected to abate. Based upon
the estimates of shifting that are available, underlying growth in M2 appeared to have been fairly
strong for the first two months of the year, but
some slowing seems to have developed in
March.
Looking ahead, the annual growth range for
actual M2 of 7 to 10 percent measured from the
average of February and March still appears
reasonable. That range allows for some limited
residual shifting over the remainder of the year.
The impact of the new accounts on Ml also
has been difficult to assess, but in recent months
probably has been largely offsetting. Obviously,
Ml has been growing at a rate substantially
above that implied by the annual target of 4 to 8
percent, and faster relative to gross national
product than would be suggested by past relationships. To some extent—but it cannot be
measured with any degree of certainty—the decreases in "velocity" may reflect the changing
nature of M l ; with interest-bearing NOW and
Super NOW accounts making up an increasingly
large proportion of M l , this aggregate may be
influenced by "savings" behavior as well as by
"transactions" motives. That is a longer-term
factor, and the growth in Ml over the shorter run
may have been affected by the reduced level of
market interest rates—particularly relative to
interest-bearing NOW accounts—and slowing inflation, as well. The range of uncertainty on
these points is substantial, and has led the Federal Open Market Committee to place less emphasis on Ml in the implementation of policy over
the short term. Nonetheless, prolonged growth
at high levels, particularly if the increases are
spread among its various components, would be
a cause for concern.
The Committee also decided to take explicit
account of the growth of total credit in judging
the appropriate rate of monetary expansion.
While full data are not yet available for the first
quarter, preliminary indications are that the aggregate debt of domestic nonfinancial sectors
grew well within the 8V2 to IIV2 percent range
projected by the FOMC. Within the total, federal
borrowing remains particularly strong, accounting for around 45 percent of the growth. Mainte-
Statements
nance of growth in federal borrowing at that
proportion of the total would be without parallel
in peacetime. For the time being, nonfinancial
corporate borrowing has been moderate, largely
reflecting reduced needs for external financing of
inventory and capital investment. But, with the
budget deficit projected to fluctuate around recent rates, an obvious question arises as to the
capacity of the credit markets to absorb a resurgence of private credit demands as the recovery
gathers momentum.
Taking account of credit as well as monetary
behavior, and some indications that the burst of
growth in at least the broader monetary aggregates may be subsiding, we believe our policy
posture has been broadly consistent with the
specific objectives we set out in February. Obviously, that implies an expectation that monetary
growth will subside in the coming months, particularly for M2 and M l .
The larger question concerns the development
of economic activity and prices during 1983 and
beyond. The FOMC has presented the estimates
of its members for GNP growth, inflation, and
other variables for 1983; while those estimates
are now two months old, my sense is that the
general contour anticipated today would be similar, perhaps—given recent data—with a bit
stronger growth and less inflation. Those estimates, given the range of uncertainty in any
forecast, are not out of keeping with the assumptions of the administration and the Congressional
Budget Office.
Mr. Chairman, you have requested some comment or response to the "sense of Congress"
provision included in the House version of the
first budget resolution pointing toward the Federal Reserve establishing numerical "objectives" with respect to certain key economic
variables over several years ahead. The Board
and the FOMC of course share the common
objective of contributing—insofar as monetary
policy can—to a growing, fully employed economy in a framework of reasonable price and
financial stability. I would emphasize my belief
that the "stability" objective is an essential
complement of the " g r o w t h " objective over any
reasonable period of time. But we are also very
conscious of the limitations on monetary policy
alone in achieving and reconciling those goals.
to Congress
339
We now provide relatively short-term projections or forecasts of several economic variables—comparable to the "assumptions" made
for purposes of forecasting the budget outcome.
Those Federal Reserve projections already provide a means of assessing the budget forecasts in
the light of our assumptions as to economic
activity. While I am not certain of the intent, the
proposed budget resolution language seems to
suggest something more—that the Federal Reserve agree upon some combination of growth,
inflation, and unemployment as a kind of ideal
path toward longer-run objectives and attempt to
manipulate monetary policy to stay on that particular path.
The possible implications of that approach
need consideration. I believe economic analysis
strongly suggests that monetary policy over longer periods is particularly relevant for prices, and
that, in any direct or short-term sense, the division between real and nominal GNP growth is
not susceptible to monetary manipulation. To
suggest otherwise—by requiring the Federal Reserve to establish short-term "objectives" for a
variety of nominal and real variables—would be
to encourage a degree of "fine tuning," and
indeed overreaction to current deviations from
trend, that could well be counterproductive in
terms of our (and your) basic continuing goals.
Moreover, experience amply demonstrates
that economic conditions for even relatively
short periods of a year or so cannot be forecast
or estimated with the precision suggested by
"point" forecasts. I am concerned that attempts
by the Federal Reserve to express "objectives"
in precise statistical terms year by year would
encourage a false belief in the controllability—
certainly by monetary policy alone—of an enormously complicated economy subject to a variety of strong forces, internal and external. Obviously, we do need to be concerned with whether
the economy is developing reasonably satisfactorily in terms of our continuing long-run objectives—and consider whether policy adjustments
are desirable.
But there is more than one pattern consistent
with the longer-run basic objectives. Our policy
judgments depend upon assessments of the composition of the nominal GNP between real
growth and inflation, the implications of short-
340
Federal Reserve Bulletin • May 1983
term deviations from anticipated trends, the
source of the "disturbances," and other factors
that need to be weighed, one against another.
None of this can easily, or at all, be captured by a
limited series of statistical macroeconomic objectives at one point in time, and I believe the
end result of the effort would be misleading to the
Congress and to the public.
I realize that, in a world that has been characterized by a great deal of economic uncertainty
and interest rate instability, there is an understandable desire to, in a sense, "pin down"
monetary policy in a way that can reduce the
uncertainties about our economic future. The
relevant question is how best to approach that
end in a way that is truly productive and would
encourage confidence, while retaining necessary
flexibility. And, in that connection, I believe it is
especially important in the case of monetary
policy to approach the question in a way that will
maintain an appropriate longer-term perspective,
looking beyond the passing pressures of the day.
Certainly, there should be no misconception
that, in approaching our long-range objectives,
monetary policy can relieve the need for difficult
choices on the budget and other areas of economic policy.
All this is a large subject of fundamental significance for the formulation and implementation of
monetary policy. It should be carefully and deliberately considered and debated before this committee and other appropriate forums. I would
urge that any proposed legislation in this area be
taken up in that framework.
•
Statement by J. Charles Partee, Member, Board
of Governors of the Federal Reserve
System,
before the Committee on Banking, Housing, and
Urban Affairs, U.S. Senate, April 12, 1983.
ity of funds in local credit markets. Usury laws
that impose unrealistically low limits tend to
reduce the supply of credit to local borrowers by
encouraging lenders to channel funds into other
investments or to geographic areas where they
can earn market rates of return. Alternatively, to
compensate for the low interest rates that are
legally permissible, lenders may tighten nonrate
lending terms and credit standards, thus in effect
rationing available credit in socially undesirable
ways. Also, financial institutions can often restructure the types of loans they make without
altering the use borrowers make of the funds.
For example, rather than offer traditional consumer loans subject to an interest rate limit,
lenders may offer junior mortgages, which typically are not subject to a usury law, but which
nevertheless add to the generalized purchasing
power of consumers.
In sum, because money is fungible, it will tend
to flow, in one way or another, to the credit
markets offering the highest economic rates of
return. Given the rapid deregulation of interest
rates paid by depository institutions, moreover,
the cost of funds to financial institutions in local
communities has become increasingly sensitive
to national money market developments. This
creates an even stronger incentive for these
institutions to earn a competitive return on their
assets.
Despite the Board's basic opposition to artifi-
I am pleased to appear before this committee on
behalf of the Federal Reserve to discuss a federal
preemption of state usury laws governing interest rates on business, agricultural, and consumer
loans. As you know, a temporary preemption of
business and agricultural rate ceilings, which was
passed as a provision of the Depository Institutions Deregulation and Monetary Control Act of
1980, expired on April 1 of this year. The preemption had authorized lenders to charge a rate
up to 5 percent above the Federal Reserve discount rate on business and agricultural loans of
$1,000 or more in those states with ceilings less
than this variable limit. Rate ceilings on consumer loans were not subject to a federal preemption
under the act. Rate ceilings on mortgage credit
were preempted permanently except in those
states that acted to override the preemption prior
to April 1. The bill currently before this committee recommends a permanent federal preemption
of state usury ceilings on business, agricultural,
and consumer credit without imposing an alternative federal limit tied to the discount rate or
any other interest rate.
The Board has long been concerned about the
adverse impact of usury ceilings on the availabil
Statements
to Congress
341
cial constraints on interest rates, we have had
reservations about federal intrusion into an area
traditionally regulated by the individual states. In
this regard, retention of a provision clearly permitting states to override a federal preemption of
their ceilings seems an important minimal protection of state prerogatives. Information collected
by Board staff indicates that, as of the middle of
last year, a dozen states had at least partially
overridden the federal law imposed on them by
the Depository Institutions Deregulation and
Monetary Control Act of 1980. Among these 12
states, however, usury ceilings on business and
agricultural loans were either unspecified or
fixed at levels at which they had no effect on
credit flows.
Those states that were most restricted by
usury ceilings generally did not act to override
the preemption. In fact, many states have moved
to relax their regulation of interest rates following the passage of the Deregulation Act. Those
states that have not relaxed or were slow to relax
their usury ceilings, particularly ceilings on consumer loans, frequently have suffered certain
costs, as financial institutions increasingly have
shifted some lending operations to other states
that have no usury constraints.
The Board believes that interest rates are best
determined in markets unconstrained by arbi-
trary rate ceilings of any kind. In the past, we
have considered a variable rate ceiling as a
preferable alternative to fixed-rate state usury
ceilings. However, the Board has viewed the use
of the Federal Reserve discount rate as an index
inappropriate for a variable interest rate ceiling
at either the federal or the state level. Thus, the
current bill is to be commended for not tying a
variable interest rate ceiling at the federal level to
the discount rate.
To summarize, the Board continues to believe
that state action rather than federal law should
prevail whenever possible in dealing with the
problem of fixed-rate usury ceilings. Many states
have acted since 1980 to reduce the constraining
effect of their usury ceilings on credit availability, and financial conditions have eased recently
to the point at which usury ceilings generally are
not now a binding constraint. Although these
factors weaken the current urgency of the matter, they do not eliminate the underlying need for
further action to relax interest rate ceilings. If the
Congress determines that this should be done
through federal preemption, the Board would
urge, first, that the states continue to be permitted whatever degree of override their circumstances seem to dictate and, second, that the
Federal Reserve discount rate not be used in any
variable ceiling rate scheme.
•
Statement by J. Charles Partee, Member, Board
of Governors of the Federal Reserve
System,
before the Subcommittee
on Financial Institutions Supervision, Regulation and Insurance of
the Committee on Banking, Finance and Urban
Affairs, U.S. House of Representatives, April 21,
1983.
Investment and Monetary Policy, and by Chairman Volcker in testimony before the Senate
Committee on Banking, Housing, and Urban
Affairs just ten days ago.
I want to reiterate the Federal Reserve
Board's support for prompt congressional action
on the IMF legislation. Increased financial resources for the IMF will add to its capacity to
assist member countries in pursuing orderly adjustments in their balance of payments problems
and will buttress the role of the IMF in the
international monetary system at a time when
that system is being subjected to extraordinary
pressures. A strengthened IMF should also be
helpful in encouraging countries to avoid adopting restrictive trade policies that would be to the
detriment of all trading countries, including the
United States.
I am pleased to appear before this subcommittee
to discuss various issues of supervision and
regulation of international lending. These issues
and the proposed increase in the financial resources for the International Monetary Fund
have been discussed by Chairman Volcker in his
testimony on February 2 before the House Committee on Banking, Finance and Urban Affairs,
by Governor Wallich in testimony before the
House Subcommittee on International Trade,
342
Federal Reserve Bulletin • May 1983
Increasing the IMF's financial resources, however, will not provide a complete solution to the
external financing problems of some major international borrowers. Countries that borrowed excessively in the recent past are now faced with
the necessity of adapting to more stringent circumstances. In this adjustment process, some
assistance should come from the economic recovery in the major industrial nations, which will
improve export markets on a worldwide basis.
Some help will also flow from the decline in
interest rates from their previous high levels.
In addition, a resolution of the external financial problems of some major borrowers requires
a marked slowing in the pace of borrowings in
the international markets from that prevailing up
to a year ago; in the case of banks, we would
expect that lending to such countries generally
will be below the growth of capital and of other
earning assets, so that relative exposure to such
countries will decline. In the late 1970s bank
loans to many countries were increasing on the
order of 20 to 25 percent per year, a rate that
clearly was unsustainable. While a slowdown in
new bank lending to the heavily indebted countries is now in process, attempts by banks to
reduce their aggregate outstanding credit to these
countries would be self-defeating and potentially
dangerous. Indeed, as with other large borrowers, some further increase in loans, to make
possible an orderly adjustment process, can help
preserve the value of the existing loans.
While fully recognizing the need for an orderly
adjustment process, the Congress and the public
have raised legitimate concerns about the pace
and prudence of international lending by banks in
recent years, and these concerns lead directly to
issues of bank regulation. After reviewing the
recent experience, the federal bank regulators
have developed a program for strengthening the
supervision and regulation of international lending and, in response to a request from the Senate
Banking Committee, have prepared draft legislation to embody the major features of this program.
Before reviewing the proposals of the bank
regulators, I think it would be useful to discuss
briefly the examination and reporting procedures
that have been in place over the past few years.
This discussion provides a background against
which the committee can consider the regulators'
proposals now before it.
As noted by your chairman, before 1977 the
agencies differed significantly in their approaches toward supervising country exposure. However, beginning in 1977 the banking agencies
implemented a number of measures to improve
supervisory procedures and to insure basic uniformity of treatment.
In 1977, the three federal banking agencies
began collecting the country exposure lending
survey on a semiannual basis. This common
report allowed the agencies to monitor the exposure of individual banks on a systematic basis. It
also insured that the banks themselves had a
mechanism for evaluating their own exposure
levels. The aggregate information on the amount
of lending by U.S. banks to individual countries
is published. The information is also provided to
the Bank for International Settlements, which
aggregates similar data from other major countries on the overall indebtedness of various countries to banks in the major developed countries.
In late 1978 the three banking agencies agreed
to new uniform procedures for supervising country risk for banks significantly involved in international lending. In this regard I might note that a
study by the Government Accounting Oflice last
year found that the system stresses uniformity
among examiners and agencies, and there is also
much uniformity in practice. The GAO report did
note some areas in which greater uniformity
might be needed, and our current proposals are
in part responsive to these suggestions.
The examination procedures adopted in 1978
were designed to encourage diversification of
loan portfolios, to identify problem credits subjected to transfer risk, to bring to the attention of
management comments on country concentrations of loans, and to evaluate the extent to
which the banks had satisfactory systems for
monitoring country exposure and assessing
country conditions.
The new procedures involved the creation of
the interagency country exposure review committee (ICERC), comprised largely of senior field
examiners, to insure the uniform treatment of
transfer risk with respect to comments on concentrations of country exposure. ICERC determines when credits warrant classification due to
Statements
country risk. It also places countries in one of
three broad groups in order to determine the
level at which a bank's exposure to a particular
country is high enough to warrant mandatory
comment. ICERC's determinations are followed
jointly by all three agencies. In general, the
federal bank regulators are satisfied with the
mechanisms, including ICERC, that have been
established in recent years to provide uniform
treatment of international lending by banks. For
this reason we are not recommending any change
in those arrangements in the new program.
In making determinations about the level of
transfer risk in lending to various countries,
ICERC has available a considerable amount of
information. To provide a starting point for analysis of country conditions by the ICERC, comparable quantitative information was developed
for about 70 countries. In addition to compiling
this information, economists at the Federal Reserve Bank of New York and the Board provide
ICERC with current studies covering specific
countries—studies that include available information from the IMF. ICERC also receives oral
briefings from U.S. Treasury staff on conditions
in the countries under review. Finally, before
each meeting, examiners visit a number of banks
to obtain views on the countries and the current
and future lending plans of the banks.
Although the new procedures adopted in 1978,
together with the introduction of the country
exposure lending survey, represented improvements in the supervision of country risk, in
retrospect the system clearly did not have sufficient force or impact on banker attitudes. Indeed, international lending by a growing number
of U.S. banks accelerated in the wake of the
increased demand for credit following the second
round of oil price increases in 1979.
Against this background, we have submitted a
proposal designed to address the problems that
have emerged in international lending. This
package should enhance and strengthen the regulatory structure developed in recent years.
The proposal submitted by the regulators includes the following elements:
1. A strengthening of the existing country risk
examination and evaluation system.
2. The establishment of a system of special
reserves against exposures to countries that have
to Congress
343
been unable to service their debts over a protracted period of time.
3. Mandating guidelines for spreading fee income over the life of an international credit.
4. Increasing the frequency of reporting and
increasing disclosure of information on banks'
country exposures.
5. Improving international cooperation with
foreign banking regulators and through the IMF.
The changes in the examination system are
designed to improve both the way in which the
regulatory agencies take transfer risk into account in assessing the condition of a bank, especially in relation to the evaluation of capital
adequacy, and the manner in which transfer risk
is brought to the attention of the bank's senior
management and board of directors.
While present country risk procedures call on
examiners to comment on concentrations of
transfer risk in the examination report, these
comments have not always been adequately impressed on senior bank management or directors.
The agencies intend now to highlight large concentrations and to ensure that a bank's board of
directors considers fully the risks associated with
such exposures, including in-house monitoring of
the bank's lending to individual countries.
At the same time, procedures will be developed to incorporate the level and concentration
of a bank's transfer risk and country exposure
into the agencies' own analysis of the condition
of a bank. In particular, banks with relatively
large concentrations of credit in individual countries will be expected to maintain higher capital
ratios than those institutions that are well diversified.
The program will also require that banks establish special reserves against credits to borrowers
in countries that have demonstrated protracted
debt-service problems. This proposal is based on
the belief that when a borrower has been unable
to service its debts over an extended period of
time, whether or not that borrower is a sovereign, it is appropriate to recognize the diminished
value of these assets. Such reserves would be
established through deductions from current
earnings and would not be included in capital for
regulatory and accounting purposes.
The program would also impose specific standards in accounting for the fee income associated
344
Federal Reserve Bulletin • May 1983
with international lending. To the extent that socalled front-end fees have been taken into income in the quarter or year in which they are
charged, rather than spread over the life of the
loan, there may have been an incentive to promote international loans in order to boost earnings. The regulators' proposal would reduce this
incentive by requiring fees that are not identifiable as reimbursement of direct costs to be taken
into income over the expected life of a loan.
The program also requires that country exposure information be reported by banks and published by the agencies in aggregate form quarterly, instead of semiannually, and that full
information on concentrations of country exposure at individual banks be made public. This
increased reporting will allow the regulators to
monitor exposure levels more closely and provide more information to lenders on the aggregate bank indebtedness of individual countries.
The increased disclosures will improve information to investors and depositors and should enhance the prospects of market discipline.
The final point in the program prepared by the
agencies concerns coordination and cooperation
with foreign bank regulators and through the
IMF. Problems in international lending affect all
participants in the world banking system and
resolution of these problems requires a common
effort. For this reason and also to help avoid
competitive inequities the agencies propose to
make every effort to strengthen relations with
foreign bank regulators.
Those relationships have materially improved
in recent years, notably through participation in
the work of the committee on banking regulations and supervisory practices at the BIS. Indeed, the Federal Reserve Board was instrumental in founding that committee in 1975 and has
been active in its work ever since. The Office of
the Comptroller of the Currency now also is a
participant.
The committee—which is sometimes known as
the Basle committee because it meets in Basle,
or the Cooke committee after its present chairman—has as its objectives the establishment and
maintenance of close working relationships
among national bank regulators to facilitate resolution of common problems and the achievement
of greater coordination of approaches to bank
supervision. The Cooke committee is concerned
with bank supervisory matters; it is not concerned with lender-of-last-resort responsibilities.
It is a consultative body; it is not empowered to
enter into agreements among its members. However, it does seek to establish general principles
to which bank supervisors around the globe may
subscribe.
International cooperative efforts by their very
nature are difficult and time consuming. While
the Cooke committee has been successful in
reaching agreement in principle on a number of
matters dealing with good practices in international banking, implementation is effected at the
national level. Thus, while the U.S. banking
agencies are determined to strengthen cooperation with foreign bank regulators, that process
will necessarily be a continuing effort, with results becoming apparent only over time.
National bank regulatory systems differ substantially from one country to another, and what
is sought is not international uniformity but rather a convergence of supervisory approaches. For
instance, very few countries in the world have
bank examinations at the center of the supervisory process as we do. Thus, the part of our
program dealing with improved examination
techniques in relation to international lending has
few parallels abroad. In these circumstances, we
will be consulting with foreign regulatory agencies, through the Cooke committee and otherwise, on ways of achieving a common goal of
limiting excessive exposures. Similarly, we have
a formal rating system in this country for assessing capital adequacy and appraising asset quality. Other countries have quite different sytems.
As part of our program, we intend to develop
procedures through which country exposures
can be factored systematically into our evaluation of capital. Internationally, there is agreement in principle that capital standards should
not be allowed to erode further. And some
countries, for example, the Netherlands, have
already begun to include elements of country risk
in their capital assessment systems.
The subject of reserves or loan-loss provisions
on country lending has been discussed within the
Cooke committee over an extended period.
From a strictly technical point of view, the
subject is a difficult one. Provisioning policies in
Statements
most of the countries represented on the committee are still largely determined by, and are the
responsibility of, the banks themselves. As a
consequence, a good deal of variation exists in
the country credits against which provisions
have been made and in the proportions of credits
reserved. At the same time, there is a growing
practice for the banking authorities of the various
countries to hold consultations with the banks
about appropriate provisioning. In this connection, I hope that the reserve proposal we have
made will provide impetus to achieving greater
progress in this area of supervision.
On disclosure, which is an important element
of our program, I do not expect much near-term
progress on the international front. Other countries do not have the same approach to disclosure
about the affairs of individual banks that we do as
a matter of national policy. Again, the U.S.
example will certainly help in efforts to hasten
the day when other countries also call for fuller
disclosures.
One can be more optimistic about improved
reporting requirements on aggregate international lending by national banking systems. An important function of the BIS in recent years has
been to collect and publish data on international
banking activity. 1 These data are accompanied
by a fairly detailed commentary (copies of which
have been provided for the committee's records), and are made available to all commercial
banks from whom data are collected.
Because of the complexity of the system, the
BIS semiannual series often has not been available until about six months after the report date,
though efforts are now under way to accelerate
that process. Various efforts are also under way
to improve the coverage of the BIS data, including converting the semiannual series to a consolidated basis, and expanding the coverage of
banks in the quarterly series. In addition, the
IMF, in consultation with the BIS, is preparing
1. The appendix, which describes the role of the BIS in
gathering and disseminating international lending data, is
available from Publications Services, Board of Governors of
the Federal Reserve System, Washington, D.C. 20551.
to Congress
345
to collect international banking data from countries not currently covered by the BIS data, and
this expanded coverage should help to improve
the overall banking data.
Questions have been raised concerning the lag
in availability of international banking statistics.
While reporting has not been as timely or as
complete as might have been desirable, I want to
emphasize that data were readily available from
existing sources pointing up the growing external
bank debt of major countries. For example, BIS
data available in mid-1981 indicated that in the 18
months to December 1980 total bank claims on
Mexico had increased about two-thirds, and
short-term bank claims had more than doubled.
Therefore, while statistical reporting systems
can and should be improved, clearly there is
room for lenders and regulators to make better
use of existing information.
The IMF, of course, plays a central role in the
international financial system, and strengthening
the role of the IMF is an important aspect of the
regulators' proposal. In particular, we believe
that the surveillance process of the IMF can be
improved by encouraging it to monitor more
closely the external indebtedness of member
countries and to report to its executive board
when such indebtedness appears to be growing
excessively relative to debt-service capacity. In
developing stabilization programs the IMF
should be encouraged to place limits on shortterm external public sector borrowing when appropriate. The IMF also needs to consider
whether it can provide more data and analysis to
the international banking community without
jeopardizing its access to confidential information from its members.
A stronger surveillance role for the IMF, as
well as the proposed increase in resources of the
IMF to provide credit to countries adopting
appropriate adjustment programs, will help contribute to the safety and soundness of the international financial system. In this context the
regulators have included the IMF provision in
their program, and we all support the IMF legislation before you.
•
Additional statements
follow.
346
Federal Reserve Bulletin • May 1983
Statement by Anthony M. Solomon,
President,
Federal Reserve Bank of New York, before the
Subcommittee on Domestic Monetary Policy of
the Committee on Banking, Finance and Urban
Affairs, U.S. House of Representatives,
Washington, D.C., April 25, 1983.
Good afternoon, Mr. Chairman. With your permission, I am here in response to your invitation
to Chairman Volcker to review the recent efforts
of the Federal Reserve System in its surveillance
of the government securities market, in order to
contribute to the orderly and effective operation
of that market.
The Federal Reserve Bank of New York,
acting on behalf of the Federal Open Market
Committee (FOMC), conducts open market operations to implement the FOMC's monetary
policy directives, mainly through transactions
involving U.S. government securities. Most
dealers in such securities are located in New
York City, and many of the nation's largest
banks are also headquartered there. Additionally, in common with the other 11 Federal Reserve
Banks, the New York Reserve Bank acts as
fiscal agent for the U.S. Treasury in the sale of
new Treasury debt issues. Altogether, more than
half of the Treasury's securities are sold through
New York financial institutions.
Nearly one year has elapsed since a dealer in
government securities, Drysdale Government
Securities, Inc. (Drysdale), was unable to pass
on to counterparties interest on securities purchased under repurchase agreements. In addition
to causing two major banks to absorb significant
losses, Drysdale's default sent shock waves
through the market that contributed to the subsequent failure of two other firms—Comark and
Lombard-Wall. These events led to a heightened
degree of awareness among all the participants in
the market regarding the risks inherent in certain
market practices and the need to be more cognizant of the financial conditions of one's counterparties in conducting market transactions.
None of the three firms that failed was a
primary dealer conducting government securities
transactions with the Federal Reserve Bank of
New York. However, the Federal Reserve had
previously transacted business in bankers acceptances with Lombard-Wall. In November 1981,
the Federal Reserve discontinued dealing in
bankers acceptances with Lombard-Wall because of dissatisfaction over its financial condition. Comark and Drysdale had approached the
Federal Reserve to establish formal reporting
relationships in government securities, but Comark failed to qualify and Drysdale applied only
days before its collapse. Nonetheless, their failures were a cause of concern to us in that such
events tend to affect the functioning of the market as a whole. In my statement before the
Subcommittee on Securities of the Senate Committee on Banking, Housing, and Urban Affairs
on May 25 last year, I expressed this concern,
and indicated that the Federal Reserve would
reexamine its traditional informal surveillance
role and work with the dealer community in
seeking to remedy the practices that led to these
difficulties.
Much progress has been made in the ensuing
11 months. With the active encouragement of the
New York Reserve Bank, dealers have effectively eliminated one of the market practices that
enabled Drysdale to overextend itself—the failure to include accrued interest in valuing securities for repurchase transactions—and are considering a number of proposals to address other
market practices when a need for change has
been recognized. For our part, the surveillance
efforts of the New York Bank have shifted into
high gear with the increase in our professional
staff devoted to this effort.
In my remarks, I would like to begin with a
brief overview of the government securities market and a review of the developments of the past
year. I will then discuss in some detail the
specific areas of concern that we see at the
present time with respect to financial and operational matters affecting the dealers and the market. I will address the question you raised:
whether the market will be able to absorb the
Treasury's financing needs resulting from the
projected deficits of the next few years without
undue upward pressure on interest rates. Finally,
I will turn to the issues that remain to be resolved, including the questions you posed regarding the number of dealers with whom the
Federal Reserve has a direct relationship: whether the Federal Reserve should be directly empowered to regulate the government securities
dealers; how repurchase transactions in government securities and certain other instruments
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should be treated for purposes of the bankruptcy
law; and questions regarding the level of capital
needed to support a given level of operations for
a dealer firm and whether specific capital ratios
should be imposed on the firms.
OVERVIEW OF THE GOVERNMENT
SECURITIES
MARKET
The market for U.S. government securities,
which comprises trading in Treasury bills, notes,
and bonds, is the most active capital market in
the world and hundreds of firms participate in it.
But it centers chiefly on some 36 primary dealer
firms that submit to the Federal Reserve Bank of
New York daily and periodic supplemental position and volume reports as well as regular financial statements. Most of these firms are located
in New York, although several are in Chicago,
Los Angeles, and San Francisco. This primary
dealer group presently includes 12 bank dealers,
which are among the nation's largest commercial
banks, and 24 nonbank dealers, which range
from comparatively small specialty firms confining their activities to this market to several of the
largest diversified investment banking firms.
Some measure of the importance of the 36
primary dealers is provided by their participation
in the market for new Treasury issues. While the
amounts vary, these dealers usually purchase
from 35 to 75 percent of the total amount sold by
the Treasury at each auction. In addition, they
make secondary markets in these issues, standing ready to bid or offer outstanding Treasury
obligations to customers and to each other. By
and large, this market functions quite well, with
the result that over the years the Treasury's huge
financing requirements have been met efficiently. Investor confidence in Treasury issues is
fortified by the knowledge of their extraordinary
liquidity in the secondary market.
Although the Federal Reserve has for decades
exercised informal surveillance of the market,
primarily through its monitoring of reports submitted by dealers with which it does business,
there has never been any formal regulation of the
market. Historically, the lack of a perceived
need for formal regulation was due in part to the
essentially riskless nature of government securi
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347
ties from a credit standpoint. Several other factors are relevant here.
1. Many of the dealers are subject to formal
regulation in some form, either because they are
banks or subsidiaries of bank holding companies
or because they are part of nonbank securities
firms that operate in regulated markets.
2. Although the purchase and sale of government securities are not regulated as such, they
remain subject to the general antifraud provisions of the federal securities laws, thus affording
protection to the individual investor in those
respects.
3. In the usual case the ability of any market
participant to carry excessive security positions
or engage in other imprudent practices is constrained by its relationships with the other participants, including the degree of credit risk exposure they are willing to assume toward that
participant.
The role of the Federal Reserve as a key
participant in the market has also served as an
important deterrent to abusive practices. In order to qualify as a primary dealer that may
transact business with the Federal Reserve, we
require that a firm be actively engaged in the
distribution of Treasury securities among investors, have adequate capital and capable management, make markets, and have a "track r e c o r d "
manifesting a long-term commitment to the market. In addition, the dealer must submit periodic,
audited financial statements to us, as well as
daily reports of its market positions. Not until all
of these requirements are met, over a period of
time, will a dealer be added to the "reporting
list." From time to time, dealers that have not
maintained these standards—for reasons such as
insufficient activity, inadequate capital, or a business decision to reduce their level of participation in the government securities market—have
been dropped from the list.
Inclusion in the reporting list does not ensure a
trading relationship; at any given time, one or
more of the firms on the reporting list may not
actually have a trading relationship with the
Federal Reserve. A firm in this position may
have been added to the reporting list while we
are still evaluating its ability to meet our somewhat more stringent criteria for a trading relationship. Alternatively, it might be a firm that has
348
Federal Reserve Bulletin • May 1983
been suspended from a trading relationship while
a reporting relationship continues. In effect, we
do what other participants in the market should
be doing—constantly review the soundness of
the firms with which we do business. We do not,
however, represent that a trading or reporting
relationship with the Federal Reserve is a guarantee of a firm's soundness.
DEVELOPMENTS
OVER THE PAST
YEAR
The most significant development in the government securities market in the past year was, of
course, the Drysdale failure and the subsequent
problems of Comark and Lombard-Wall. On
September 15, 1982, the Federal Reserve Bank
of New York submitted to the Congress a report
on these developments. To review briefly, the
common thread running through the three cases
was that the firms were able to circumvent in
some fashion the self-regulating mechanisms of
the market, thereby raising working capital from
careless or unwitting customers, and using that
capital in their own activities.
In the Drysdale case, the firm essentially
raised funds by borrowing securities, typically
securities with large amounts of accrued interest,
and then selling them to realize principal and
accrued interest in excess of the cash margin it
provided when it borrowed the securities. It was
able to engage in this activity on a large scale by
exploiting two market practices—the failure to
include accrued interest in the value of securities
used in repurchase transactions in determining
how much cash should be posted, and the practice of "blind brokering," which enabled Drysdale to conceal its identity from its counterparty—in effect hiding behind the banks that
acted as brokers in arranging the transactions.
In the Comark situation, some of the firm's
customers apparently allowed Comark to retain
custody of securities they had purchased from it.
The firm's accounting system had fallen into
disarray, and allegations are that it posted the
securities as collateral to secure borrowings that
allowed it to continue functioning, even though
its capital had been depleted. It eventually
proved unable to meet its demands by customers
for their securities.
In the Lombard-Wall situation, some customers advanced funds in excess of the value of the
securities they received under repurchase agreements. Others received funds from L o m b a r d Wall of lesser value than the securities they
provided. Again, the firm was able to employ
these excess funds to support activities well
beyond the level warranted by its own capital.
In the wake of these developments, the Federal Reserve moved to take the lead in working
with dealers and other market participants to
improve procedures and eliminate the practices
that were identified as having caused or contributed to these breakdowns in the market's normal
self-corrective mechanisms. At the same time,
the dealers began moving toward needed
changes in some areas without the Federal Reserve being actively involved.
In the immediate aftermath of the disclosure
that Drysdale could not honor its commitment on
some $160 million of accrued securities interest
payments due to Chase Manhattan Bank last
May 17, our primary concern at the Federal
Reserve was to preserve the orderly functioning
of the market until the situation could be resolved. We recognized some risk that failure to
make these payments could cause a widespread
"seizing u p " of the market in which normally
major participants would be reluctant to undertake new commitments or perhaps even to perform on their existing commitments.
As the major intermediary between Drysdale
and its counterparties in these transactions, the
Chase Manhattan Bank contacted the New York
Federal Reserve Bank and arranged for a meeting at our offices with the dealer firms that were
involved. The key issue was who should bear the
loss resulting from Drysdale's default. The firms
that had provided the securities through Chase
expected that bank to honor the interest payments due, while Chase was looking to Drysdale
as the responsible party. The immediate crisis
was resolved two days later on May 19, with the
announcement by Chase and Manufacturers
Hanover, which was involved to a lesser extent,
that they would make the interest payments in
question and would undertake to unwind Drysdale's securities positions.
During these difficult two days, the New York
Reserve Bank took a number of actions aimed at
Statements
facilitating a resolution of the crisis and making
sure to the extent possible that the market continued to function smoothly. On May 18 we
informed the 12 New York Clearing House banks
and all of the primary dealers that we were
closely monitoring the situation and stood ready
to assist any bank facing an unusual liquidity
problem with a loan at our discount window. In
addition, we extended normal deadlines for our
securities and funds transfer systems to make
sure that the day's transactions could be completed.
The Open Market Desk also helped by acting a
bit earlier than usual in meeting projected reserve needs on May 18, and in the period immediately thereafter, we tended to resolve any
doubts as to the timing of our actions on the side
of meeting anticipated needs more promptly and
fully. But I should emphasize that the reserve
objectives themselves were shaped by monetary
policy considerations and were not affected by
Drysdale-related factors.
Following the commitment of Chase and Manufacturers Hanover to unwind Drysdale's position, the Federal Reserve also helped out by
alerting the dealers that we would temporarily
liberalize our rules for making short-term loans
of government securities from our portfolio. As a
result, the volume of securities owned by the
Federal Reserve and out on loan—such volume
is normally in the vicinity of about $200 million—
briefly reached a high of about $2 billion on May
25, before dropping back by early June as dealers
found other sources for the securities they needed.
Beyond helping to contain the effects of the
immediate situation last spring and summer, the
Federal Reserve has moved to strengthen its own
commitment to overseeing the market. Last August, we announced the appointment of a Senior
Vice President to head a new unit within our
Open Market function devoted exclusively to
market surveillance. This individual, Edward
Geng, has had broad experience in government
securities at several private firms, as well as a
previous stint at the Federal Reserve and at the
U.S. Treasury. Early this year we filled out, for
the time being, the staffing of this new area,
which presently includes two officers; five professional employees with experience in financial
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349
analysis, dealer operations, and law; and a few
support personnel. We anticipate that this staff
will be adequate to meet our present needs,
although we are prepared to expand it if warranted by new developments—such as, for example,
a significant increase in the number of dealers
reporting data to us. In addition, our surveillance
effort draws upon the Bank's other professional
resources as necessary for legal, analytical, and
operating support.
The basic ongoing work of the surveillance
unit consists of receiving and reviewing the regular daily and weekly reports of securities positions and transactions submitted by the reporting
dealers, as well as their monthly and annual
reports of financial condition. With the aid of
computer programs and other analytical tools,
this review is aimed at identifying abnormal
dealer behavior and incipient undesirable trends.
The inferences and opinions formed by our analytical team from examining these statistical reports are supplemented by regular telephone
calls and visits to the reporting dealer firms.
While we have traditionally made on-site surveillance visits to the reporting dealers, the visits
have been expanded in both scope and frequency
and the procedure for conducting them is more
systematic. Essentially, every reporting dealer
will be visited at least once annually, and more
often as necessary if areas of concern have been
identified. As I mentioned earlier, we would be
prepared to suspend a trading relationship with a
reporting dealer, or to remove the dealer from
the reporting list, if our surveillance efforts reveal that it is not complying with our standards
and it does not take appropriate steps to alleviate
our concerns.
A little further on I will address some of the
specific issues of concern being examined by our
surveillance staff. To bring you up to date,
however, I would like to mention briefly several
issues that already have been dealt with successfully.
First, the Drysdale situation made clear that
the failure to include accrued interest in valuing
securities for repurchase transactions carried a
potential for abuse that was inconsistent with the
sound functioning of the markets. The Association of Primary Dealers in Government Securities put itself on record as favoring inclusion of
350
Federal Reserve Bulletin • May 1983
accrued interest for evaluation purposes, and we
at the Federal Reserve strongly endorsed this
change as well. In a letter dated July 29, 1982,
addressed to the head of each dealer firm, I
expressed the support of the New York Reserve
Bank for this change and informed the dealers
that we would make the change in August with
respect to our own repurchase transactions. I
should add that this change was not necessary to
protect our own position; rather, we undertook it
with a view to providing leadership and encouragement to the rest of the market.
A bit later we became concerned that the
initial momentum in the dealer community toward making this practice more general had
bogged down as dealers considered the time and
expense to make changes, for example, to their
computer systems. In individual consultations
with reporting dealers, we concluded that it
would be feasible for market participants to
make the change in accrued interest accounting
with customers other than the Federal Reserve
by early October. Accordingly, in late August we
wrote to each reporting dealer once again, indicating that we expected the changeover to be
completed by October 4, 1982—as it eventually
was with few problems.
The self-corrective mechanisms of the market
have also contributed to inhibit some of the
practices that led to last year's problems. In
general, market participants became much more
cautious about the dealers with whom they were
willing to transact business and in what amounts.
As a result, the total of reported repurchase
agreements fell from some $100 billion on May
12, just before the Drysdale incident, to about
$87 billion by mid-June. Subsequently, as confidence has returned to the market, the volume of
repurchase transactions has recovered in the
aggregate. But for a while thereafter those dealers regarded as less creditworthy continued to
experience some difficulty securing repurchase
financing, or found they had to pay higher interest rates. Consistent with this atmosphere of
renewed caution and attention to one's counterparties, the practice of blind brokering of repurchase agreements has diminished substantially.
Moreover, market participants are giving closer
attention to the role of intermediaries in all types
of transactions.
CURRENT
ISSUES
Let me turn now to more current issues. By and
large, these are the matters identified in your
letter, Mr. Chairman: whether the number of
reporting dealers should be expanded and how
this might be accomplished; the development
and implementation of more explicit capital adequacy standards for the dealer firms; and the
treatment of repurchase agreements under the
bankruptcy laws. In addition, I will touch upon
another area to which we have been devoting
considerable thought and effort, "when-issued"
trading—transactions in new issues between announcement and settlement date.
Number
of
Dealers
As I have mentioned, 36 dealers are on the
Federal Reserve's reporting list, including 12
commercial banks and 24 nonbanks. Although
this number has been fairly stable in recent
years, it has grown considerably from the level
that prevailed historically. Through the 1960s the
number of dealers remained stable at around 20,
including 12 to 14 nonbanks and 5 to 8 banks. In
the 1970s, however, the number of dealers increased as the Treasury's financing needs grew
and the market expanded in depth and breadth.
The present level was reached in the latter part of
the 1970s.
From the standpoint of conducting open market operations competitively and flexibly, the
present number of reporting dealers appears to
be satisfactory. We do not believe that a large
expansion in the number of firms with reporting
or trading relationships would significantly improve our ability to operate in the market. Indeed, a sizable expansion in trading relationships
could be an encumbrance to speedy and flexible
operations. Nevertheless, the door is open to
additional firms, if they meet our criteria and are
prepared to comply with our reporting requirements. As noted, a dozen or so firms have been
added to the primary dealer reporting list over
the past decade and we continue to look at the
possibility of some further additions on a caseby-case basis. The addition of new firms has
tended to benefit the market not only by provid-
Statements
ing a broadened base of participation and increased capital, but also by keeping the older
established firms on their toes through enhanced
competition.
However, while our present reporting list is
adequate to meet our foreseeable trading needs,
we have concluded that it is not sufficient for
monitoring purposes—even though we believe
these firms account for the bulk of trading activity in government securities. The experience of
last year has shown that problems among the
nonreporting dealers can cause shock waves that
affect the entire market, including the reporting
dealers. With this in mind, we have been giving
considerable thought in recent months to the
question whether there should be some more
systematic surveillance of presently nonreporting firms that are relatively active in the government securities market. We have concluded that
effective surveillance of the government securities market calls for our getting acquainted with a
greater number of firms on a more regular basis,
and we plan to do so.
Our plans are still in a formative stage, but our
present intention is to request cooperation in
terms of data submission from a group of dealers
that are less sizable and active than the primary
reporting dealers. This group would include only
nonbank firms, as the chief focus here is on the
financial viability of the firms, and bank dealers
are already under close regulatory scrutiny that
we would not seek to duplicate in our market
surveillance. We are thinking in terms of a substantial number of additional dealer firms that
would be invited to submit regular reports to the
New York Reserve Bank on a considerably less
frequent and detailed basis than the primary
reporting dealers.
As with the existing reporting group, the submission of reports from a second dealer group
would be entirely voluntary. This second reporting group would form a logical pool of candidates
from which future primary reporting firms might
emerge, thereby furnishing an incentive for the
firms to comply with our requests. I also believe
that as a matter of policy any sizable participant
in the government securities market would not
want to be in the position of declining to disclose
information in confidence to the Federal Reserve.
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351
We are not suggesting a detailed and comprehensive reporting system such as would be entailed in a formal regulatory relationship with all
dealers in government securities. At this point,
our judgment is that a fully comprehensive and
mandatory reporting system is not justified on
the basis of likely costs and benefits. We do
believe, though, that there is enough activity in
government securities beyond the current primary reporting dealer group to warrant a more
systematic effort to receive some information
from the more active and sizable nonreporting
dealers. This information would help to provide
leads on which follow-up inquiries could be
pursued, and additionally foster a greater awareness of standards in regard to good market
practice and capital adequacy across a broader
spectrum of market participants.
In your letter to Chairman Volcker, Mr. Chairman, you asked whether we had any concern
that imposing additional standards on the government securities dealers could reduce the number of firms available to handle the forthcoming
heavy volume of Treasury financings. I do not
see either our present reporting requirements or
our plans for the foreseeable future as posing any
problem in this regard. It seems to me that as
long as our standards are reasonable and geared
to the legitimate business practices of the dealer
firms, a firm that has the resources and the desire
to be a significant market participant is not likely
to withdraw from this market—which is, after
all, a large and profitable source of business.
As a related matter, you have expressed some
concern regarding the budget deficit and the
market's ability to absorb the expected volume
of Treasury financing without compromising the
soundness of the dealer firms or causing undue
upward pressure on interest rates. With the
economy just beginning to recover from a deep
recession, I do not regard the current year's
federal deficit as a significant problem. As in past
recessions, weak private credit demands have
allowed the government to increase its demands
on the credit market without exerting undue
pressure on rates. In fact, as you know, rates
have fallen substantially in the last 10 months or
so in reflection of weakened private credit demands and a growing perception that inflation
has slowed substantially. As recovery proceeds,
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Federal Reserve Bulletin • May 1983
however, there is a real danger that still-excessive federal deficits would mean that the Treasury is competing on a massive scale with the
rising private credit demands that are the natural
accompaniment to a reviving economy. This
would inevitably have an effect on interest rates,
and pose the potential danger of inhibiting orderly economic recovery.
Such an outcome would not be a function of
the current structure of the government securities market, however, but simply of the outsize
federal deficits at a time when a much more
nearly balanced federal fiscal posture is called
for. The government securities dealers that report to the Federal Reserve are in a position to
withstand the possible strains that the deficit and
resulting large public sector borrowing requirements could generate in the market. The capital
positions of these dealers have strengthened in
recent years. Despite the difficulties of predicting
market movements, most dealers have ably
weathered periods of market volatility, in part
due to their increasingly sophisticated trading
techniques and ability to adapt to shifting market
environments. During periods of favorable market conditions they have added significantly to
their capital base, which I believe is adequate to
the tasks ahead—provided, as always, that attention is paid to market and credit risks. This does
not mean, of course, that heavy Treasury deficits
will not present problems for the overall economy, but only that the dealers should be able to
perform their underwriting task.
Repurchase
Agreements
As I have noted, one major area of concern
involving repurchase agreements—the inclusion
of accrued interest in repurchase accounting—
has largely been dealt with to our satisfaction.
There is another issue involving " r e p o s " that
has arisen in the past year, however, specifically
as an outgrowth of the Lombard-Wall bankruptcy. I refer to the question of how repurchase
agreements may be treated in a bankruptcy proceeding.
On August 12 last year, Lombard-Wall filed a
voluntary bankruptcy petition under chapter 11
of the bankruptcy code. Most of its customers,
who had entered into repurchase or reverse
repurchase agreements with the firm, found that
their transactions were frozen pending a decision
by the court on how to deal with these transactions. The inability of these customers to use
either their funds or their securities weakened
confidence in the repo market. The underlying
legal issue was whether these transactions
should be characterized as secured loans or as
purchases and sales.
The principal problem with the former characterization is that if a repo is treated as a loan, the
"lender" of funds (purchaser of securities) runs
the risk that his funds could be tied up for a
protracted period of time if the counterparty
were to enter bankruptcy proceedings before the
repurchase portion of the transaction were completed. In addition to tying up his funds, this
could place the "lender" in the position of
unsecured creditor with respect to any portion of
his loan not covered by the value of the securities. Thus, if the securities were to decline in
value, he could lose money in what he had
thought to be an essentially riskless transaction.
While I cannot define precisely the extent to
which the government securities market would
be impaired if the secured loan characterization
of repos were to prevail, I am confident that
some deterioration would result. Indeed, there
has already been some deterioration, which
might well have gone further but for the anticipation by many market participants that the legal
questions overhanging the status of repos will be
favorably resolved. At the least, the market
would lose a significant measure of liquidity as
some risk-averse participants withdrew or reduced their exposure; the interest rate paid on
such transactions would rise to reflect the greater
risk and lessened willingness of temporary investors to participate; and market participants with
less-established track records would experience
some loss of business and higher financing costs.
I would foresee these factors hampering to some
degree the Treasury's ability to market its offerings as well as increasing its financing costs.
Repurchase agreements have emerged over
the years as a particularly useful tool in conducting Federal Reserve open market operations,
because they allow us to adjust reserves for short
periods of time. Thus, a diminution in the liquid-
Statements
ity of the repo market could also hamper the
conduct of monetary policy.
In letters dated September 29, 1982, to Chairman Dole of the Subcommittee on Courts, Senate Judiciary Committee, and January 20, 1983,
to Chairman Rodino of the House Judiciary
Committee, Chairman Volcker recommended
that the Congress enact proposed legislation that
would exempt repos in government and federal
agency securities and certain other instruments
from the automatic stay provisions of the bankruptcy code, which would otherwise operate to
prevent the orderly liquidation of these transactions. I certainly endorse these recommendations and urge the Congress to move forward in
this area. Earlier, because of our concern about
potentially significant effects on the repo market,
and thus on the Federal Reserve's ability to
conduct monetary policy, the Federal Reserve
Bank of New York had filed an amicus curiae
brief in the Lombard-Wall case. We took the
position that public policy would be better
served if repurchase agreements in government
securities were not characterized as secured
loans.
Capital
Adequacy
The question of whether a particular dealer's
capital is adequate to support its level of operations is perhaps the single most basic issue of
concern in our surveillance efforts. The three
firms that failed last year—Drysdale, Comark,
and Lombard-Wall—were all thinly capitalized
in relation to their volume of business. Thus, the
importance of capital adequacy guidelines lies
not only in monitoring the reporting dealers, but
also in furnishing objective criteria for dealers
and others to use in appraising their trading
counterparties.
Unfortunately, the evaluation of capital adequacy on any basis that attempts to give weight
to different circumstances in a fair and realistic
manner can be enormously complex. The vast
changes in market practices and trading vehicles
in recent years, including the development of
forward, future, and option transactions, as well
as the increasingly intricate use of repos and
reverse repos, have all complicated the task.
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353
Up to now, our surveillance staff has looked at
capital adequacy on a case-by-case basis. Reporting dealers have from time to time been
cautioned when position risks have seemed excessive in relation to capital or when they have
financed certain transactions that have swollen
balance sheet totals excessively. In light of these
increasing complexities and the desire to create a
model of capital adequacy that may be used also
by dealers and customers to evaluate their trading counterparties, our feeling is that more specific and objective criteria must be developed
that apply across the board.
The surveillance staff has assigned this project
top priority, and efforts are under way to develop
objective criteria for measuring dealer capital
and its usage. Clearly the starting point is a
concept of available or liquid capital. To measure
the adequacy of such capital an evaluation system should encompass several broad considerations. First, a dealer's portfolio positions, both
gross and net, must be measured and risk evaluated for each maturity and type of instrument,
taking account of acceptable hedging techniques
that may be employed to limit exposure. Second,
the risk entailed in financing transactions, especially in "matched books" (offsetting repurchase
and reverse repurchase agreements), should be
analyzed as part of any such system. The surveillance staff is presently developing a variety of
statistical measures and computer programs that
look toward systematic analysis of dealer positions and risk exposure.
We expect that, when developed, such objective criteria of capital adequacy will be applied in
the first instance to the primary reporting dealers. We would suggest and expect voluntary
compliance with such standards of capital adequacy by the large or active nonreporting dealers
as well, on the assumption that clearing and
lending banks as well as customers would look
for such compliance with generally accepted
standards of capital adequacy.
It would, of course, be essential that any
evaluation system also continue to take into
account more subjective measures of risk such as
the type of customers, internal controls, and
credit and margin monitoring procedures, as well
as management's overall business philosophy,
capacity, and experience. For our part, I know of
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Federal Reserve Bulletin • May 1983
no way to assess these factors other than through
a case-by-case approach including the surveillance visits and individual firm contacts we have
been pursuing. Even a firm with apparently
adequate or conservative capital could nonetheless find itself in serious difficulty in a short
period of time if it is poorly managed. Obviously,
a purely mechanical approach to the capital
adequacy question cannot guarantee the elimination of such problems.
When-Issued
Trading
In the aftermath of the Drysdale situation, we
discussed with dealers other areas in which future problems might arise. One area mentioned
frequently involves when-issued trading. This
term refers to transactions in which the parties
commit to trade a security that has not yet been
issued but will be issued in the near future, with
the transactions to be completed when the security is issued. The volume of this type of forward
trading has reached very high levels in recent
years.
Under current market practice no money
changes hands until the securities are actually
issued and delivered. It is, therefore, possible for
a market participant to trade in very large volume on a when-issued basis without employing
any capital at all. Additionally, while prudent
practices might lead an individual firm to limit its
exposure to a particular counterparty in this type
of trade, nothing in the present system would
prevent a market participant from entering into a
large number of such trades with many different
firms—each of which would be unaware of the
extent of the participant's total commitments.
Because these transactions can remain open for
up to three weeks before the security is issued,
the possibility exists that an adverse market
move could render such a trader unable to honor
his commitments when the security is issued.
At the present time, we are actively discussing
a variety of proposals regarding when-issued
trading with market participants, most of whom
share our concern about this practice in varying
degrees. The most comprehensive proposal
would set up a central facility to clear whenissued trading and to maintain margins on trans-
actions. The organized futures exchanges typically deal with this problem through a " m a r k to
m a r k e t " mechanism run by the exchange itself.
We are continuing to have discussions with the
dealers as we seek a generally acceptable solution that will deal with potential excessive exposure from when-issued trading. While we are
prepared to insist on a Federal Reserve solution
if necessary, we would much prefer—and indeed, expect—to reach a satisfactory agreement
with the dealers on a voluntary basis, as they
perceive that their own long-term interests are
best served by adequate safeguards on whenissued trading.
SHOULD THE FEDERAL RESERVE HAVE A
FORMAL REGULATORY
ROLE?
The final question I would like to address this
afternoon is whether the surveillance role of the
Federal Reserve should be made formal and
expanded through a legislative mandate. At the
present time, I continue to believe that the failure
of a handful of nonreporting dealers does not in
itself justify a move to a more encompassing
regulatory structure—any more than the absence
of such failures for a number of years before that
should have been cause for complacency. Certainly, these recent events indicated a need for
more active and forceful market monitoring and
surveillance, and as my remarks here have indicated we at the New York Reserve Bank have
taken responsive actions along these lines.
But in the final analysis, whether it is necessary or desirable to impose a more formal regulatory structure in the public interest is not a
question that can be answered in the abstract or
by ideological preference, but only on the basis
of carefully evaluated experience. In my judgment, the principal consideration that should
guide the Congress is an assessment of the
efficacy of any particular approach in containing
the " s h o c k w a v e s " caused by occurrences such
as these three failures—in other words, preventing a single firm's failure, which in itself may not
be a serious or even an undesirable event, from
becoming a systemic failure. In this context, I
think the events of last year, and the Federal
Reserve's response to those events I alluded to
Statements
earlier, show that the present structure affords us
the means and the flexibility to act promptly and
decisively through several avenues—the Open
Market Desk, the discount window, and, not
least in importance, the exercise of moral leadership as we did in the accrued interest question.
As a second consideration, the Congress might
also want to consider the likelihood that members of the public participating in this market
might suffer losses resulting from the types of
abuses we have discussed—balanced against the
costs associated with the establishment of a
formal regulatory structure. In considering the
costs, I would include not just the "out-ofpocket" expense, but also the potential costs
that could result from hampering the market's
flexibility and responsiveness.
To put the discussion in perspective, there are
essentially three general approaches to regulating a market such as the government securities
market. First, one could rely in the first instance
on the self-regulating mechanisms inherent in the
market itself, fortified by informal oversight by
the Federal Reserve. This, of course, is essentially the structure in effect at the present time.
Second, a more formalized and structured selfregulatory organization could be established,
with market participants setting and enforcing
rules governing such matters as trading practices
and capital adequacy, under the oversight of a
governmental body with explicit authority to
enforce those rules. This is essentially the approach followed with respect to such organizations as the New York Stock Exchange and the
National Association of Securities Dealers.
Third, the governmental authority in question
could directly regulate the market, imposing
rules pursuant to a legislative mandate and taking
disciplinary action as necessary to enforce those
rules.
Based on the considerations I have outlined, I
can see no justification for the third approach,
direct regulation. In my judgment, it would be
inconsistent with the objective sought, that of
preventing a recurrence of lapses of proper practices or overcommitments in relation to capital
that led to the failures of the three dealer firms
last year. As you know, the Congress has moved
affirmatively to reduce the level of regulation in
banking, as it has in other industries, and I think
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355
to start thinking at this time about direct regulation of a market that traditionally has functioned
well without it would be counterproductive.
The next question is whether the current selfregulatory structure should be made more formal
than it has been, and whether the Federal Reserve's oversight role should be made more
explicit through the legislative process. On balance, I conclude that those steps are not necessary at this time. I think we should keep in mind
that the losses incurred in last year's three failures—unpleasant and undesirable though they
were—fell almost entirely on large and sophisticated market participants, rather than on small
individual investors. Logic and experience tell us
that when significant market participants incur
losses of this type they are likely thereafter to
take the lead in promoting the necessary reforms
and insuring that the market's normal self-corrective mechanisms come into play. I have some
concern that there is less incentive for them to do
so under a more formal structure.
It is sometimes tempting, in the wake of market disturbances such as those of last year, to
jump to the conclusion that more formal regulation would have prevented the problem, but I
seriously doubt that such a conclusion is warranted at this time. This market has generally
functioned quite well in a self-regulatory environment—and no degree of regulation can guarantee that accidents won't happen from time to
time. The existence of the Securities Investor
Protection Corporation (SIPC) is, after all, a tacit
recognition that even those securities firms that
operate in regulated markets with strict capitalratio requirements are not immune from failure.
The same could be said of deposit insurance for
banks and thrift institutions.
So at this time I conclude that formal regulatory authority for the Federal Reserve is not the
best way to go. But I would emphasize that our
minds remain open on this score. At times some
of the dealers appear to have permitted a measure of complacency to return now that the
immediate threat of market disruption is over. To
the extent that this attitude becomes more widespread and cannot be overcome by us in our
surveillance role, I would have some concern
that the momentum of self-regulatory reform
could be lost as the events of last year recede
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Federal Reserve Bulletin • May 1983
into the past. If this were to happen, the time
may yet come when formal regulation imposed
by the Congress will be necessary. And in clos-
ing, let me emphasize that we would have no
hesitation in recommending such an action if we
were to reach that conclusion.
•
Statement by Paul A. Volcker, Chairman, Board
of Governors of the Federal Reserve
System,
before the Committee on Banking, Housing, and
Urban Affairs, U.S. Senate, April 26, 1983.
flected irreversible technological as well as market forces. The low cost and speed of data
transmission, communication, and personal
transportation have vastly enlarged the market
reach of banking and financial institutions. The
technical capabilities of providing a variety of
essentially computerized financial services are
broadly available. At the same time, the number
and wealth of potential customers have multiplied, and with this increase a demand for a
greater array of financial services and more sophistication in seeking out maximum returns.
Diversification of investments beyond traditional
deposit accounts, ready access to sources of
borrowing power, and the flexibility to change
financial strategies rapidly and inexpensively
have become increasingly important.
Several other factors affecting the financial
environment have also provided impetus for
change. Experience with inflation, and with
sharply higher and fluctuating interest rates, has
seemed to put a premium on financial manipulation, shifting funds rapidly to take advantage of
changing yield relationships or perceived
changes in the outlook. Institutions with embedded costs or fixed returns inherited from investment decisions made earlier have often been
disadvantaged relative to newer market interests. In the new environment, regulatory restraints adding to costs (such as reserve requirements on the established depository institutions)
or impairing quick responses to perceived opportunities (such as interest rate ceilings) have
chafed more strongly and have distorted competitive positions. At the same time, the decades
that have passed since any serious weaknesses in
the financial system became evident, a sense of
security among depositors rooted in part in the
knowledge of a strong governmental "safety
net" protecting the financial system, and expectations of a persisting inflationary trend have all
seemed to encourage less caution and a willingness—deliberately or not—for managers of financial institutions to undertake greater leverage
and risk in the search for higher returns.
We in the Federal Reserve welcome your initiative in undertaking these hearings to review,
from a broad perspective, developments in markets for banking and other "financial services,"
laying the groundwork for future legislative initiatives. There can be no doubt that a reexamination of the existing legislative framework has
become urgent. Our financial system has been
evolving rapidly in recent years. Much of the
change is a constructive response to technological or market pressures and the opportunities
made possible by deregulation. But it is also
clear that the process has been rushing forward
with little conscious sense of some of the broad
public interests at stake—the need to maintain a
safe and stable financial system, to assure equitable and competitive access to services by businesses and consumers, and to preserve an effective mechanism for transmitting the influence of
monetary, credit, and other policies to the economy.
Many of the laws intended to guide and shape
the development of the financial system were
enacted under far different circumstances. They
may or may not serve today's purposes, and in
some instances may themselves be a source of
distortion, competitive imbalance, and weakness. For all these reasons, I appreciate the
opportunity to set forth some general considerations that we in the Federal Reserve feel are
relevant in assessing particular legislative proposals. At a later time, we would of course be
prepared to set forth more specific suggestions.
THE CURRENT
SITUATION
The accelerated pace of change in the structure
of our financial system in recent years has re
Statements
In combination, the technological and economic forces at work have led to a search for
new financial services and for new ways to
package those services, greater competition between traditional depository institutions and other providers or "packagers" of financial services, and a blurring in many of the traditional
distinctions among depository institutions themselves.
One reflection has been the rapid growth of
such relatively new institutions as money market
funds and cash management accounts. Increasing efforts are being made, by means of mergers
and otherwise, by securities firms, insurance
companies, and others to exploit, when possible,
perceived "loopholes" in existing law to cross
traditional industry lines into banking and the
payments system. Banks and other depository
institutions have responded by bidding more
vigorously for consumer funds and seeking, successfully, to ease regulatory restrictions. They
have, to the extent permitted by law, moved to
acquire securities brokers and to develop relationships with mutual funds. Moreover, some
nonfinancial
firms—retailers
or
industrial
firms—have sought to enter financial markets,
further eroding the traditional distinction in the
United States between "banking," broadly defined, and commerce.
Worth noting is that, after decades of stability
in the relative position of commercial banks in
our financial system, the experience of more
recent years has suggested some erosion in that
position. While that may well prove temporary,
the sense of greater competitive pressures, the
blurring of distinctions between banks and "nonbanks," and the frustration about an unsettled
and partly outmoded regulatory framework have
certainly contributed to uncertainty about the
future of depository institutions. Concerns of the
thrift institutions have been even more pressing.
In the past few years, thrift institutions carrying
large portfolios of mortgages acquired at lower
interest rates have been under particularly strong
earnings pressure and their capital positions have
sharply eroded. With future prospects seemingly
in jeopardy, the whole orientation of the industry
is in flux, responding to immediate concerns as
much as to any carefully conceived vision of
what role these institutions should play in the
future.
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357
Whatever the merits of the process of change
in responding to felt needs—and they are considerable—certain problems, actual and potential,
have plainly emerged. Institutions need to respond to market incentives, and as regulators
and legislators concerned with the public interest, our task is not to thwart change or block
responses to new needs. But we also want to see
change channeled along constructive lines, sensitive to abiding and valid concerns of public
policy. One of those basic concerns is the safety
and soundness of our payments system and the
financial system generally. Matters of competitive equity, both for the providers and consumers of financial services, need to be addressed.
The consistency of emerging financial patterns
with the needs of monetary and credit policy
must be considered. And historical concerns
over concentration of financial resources and
conflicts of interest in the provision of financial
services should be reexamined for their applicability in the light of today's circumstances.
Unfortunately, the interaction between the
current legal and regulatory structure and market
pressures provides no assurance that these concerns are adequately addressed. Instead, in some
ways it has channeled pressures for change in
directions that have had unintended and adverse
effects. Deposit-like instruments and payments
services have sprung up in significant volume
outside the framework of governmentally protected and supervised depository institutions.
The depository institutions themselves have today a potentially more volatile structure of liabilities and smaller capital cushions than in the
past. With the enlarged powers of thrift institutions, we now have competing "banking" systems with different legal and regulatory philosophies, providing incentives to exploit the most
"liberal" (or " l a x " ) provisions. Anomalies in
the structure of our current regulatory system—
and challenges to long-standing regulatory interpretations—are eroding traditional constraints
on combining deposit-taking with other activities, in the process threatening to undermine
whatever public interest may remain in those
constraints.
The new vocabulary springing up of "nonbank
banks," "thrift banks," money market fund
"checks"—seemingly inconsistent on their
face—reflect the blurring of traditional institu-
358
Federal Reserve Bulletin • May 1983
tional lines and functions. Some of it is healthy,
and some is not. What is needed is a broad look
at the whole, with a period of public and legislative debate concerning the desirable ends and
means, followed by a reshaping of the existing
legislative framework.
POSSIBLE INTERIM
STEPS
As that process takes place, we cannot expect
the market forces to stand still. But I believe we
can and should deal, for an interim period, with
some of the most obvious distortions and loopholes in the present regulatory structure that
tend to channel change in specific forms that may
in some instances be contrary to a desirable
longer-term evolution. To that end, the Federal
Reserve has broadened the definition of "commercial lending" to forestall, or limit, avoidance
of the basic purposes of the Bank Holding Company Act. To the same end, I welcome the
Comptroller's moratorium on new chartering of
nonbank banks so that the Congress has time to
address the underlying issues. But clearly these
measures are not sufficient to maintain even a
limited "status q u o , " as indicated by the backlog
of pending applications and a subsequent announcement of an intended combination of a
state-chartered bank and an insurance company
and proposed combinations of thrift institutions
and securities houses. Therefore, I would suggest that the Congress consider limiting combinations of nonbank banks (and thrifts) with nondepository institutions for a strictly limited period
of time so that it can decide on an appropriate
policy approach rather than be faced with a fait
accompli.
A similar, and possibly more serious, reordering of the national financial structure, without
congressional review and determination, is implicit in the recent actions and proposals in a
number of states to allow the banks or thrift
institutions they charter to engage across the
country in a much wider range of financial and
nonfinancial activities than banks or thrifts chartered by federal authorities. The motivation of
states in large part, appears to be a desire to
compete for jobs, rather than careful consider-
ation of a desirable evolution of the financial
structure for the nation.
The federal concern in this regard extends
beyond the fact that financial markets are increasingly national in scope and the institutional
setting has national implications. State-chartered
depository institutions have federal support
through deposit insurance and access to the
discount window, reflecting the interdependence
among banks and the national concern for their
stability.
The Federal Reserve, in administering the
Bank Holding Company Act, has for some years
maintained a policy of permitting state-chartered
bank affiliates of bank holding companies to
engage in any activity such a bank is permitted to
engage in under its state charter. This policy has
been premised upon the view that a certain
degree of experimentation and difference in approach among the states is a legitimate and
desirable aspect of our dual banking system and
that differences in powers allowed by states
would be acceptable to the extent that they
would not dominate established congressional
policy. In view of current developments, I believe that policy should be reviewed to consider
whether the result is to undercut the federal
standards set forth in the Bank Holding Company Act, particularly when the wider powers
might clearly be exercised largely beyond the
borders of the state providing the authority.
AN APPROACH TOWARD THE REGULATION
OF DEPOSITORY
INSTITUTIONS
In conducting a reexamination of the regulatory
framework more generally, a number of goals
should be kept in mind: enhancing competition;
promoting efficiency in the allocation of capital
and credit; assuring protection of consumers,
depositors, investors, and others against discrimination, conflicts of interest, and other potential abuses; and encouraging consistency and
equity in the treatment of competing financial
institutions. It is important to keep in mind that
some of these goals will sometimes be best
served by less regulation rather than more.
Another consideration that has historically
been of special importance in public policy to-
Statements
ward banks and other depository institutions is
plain, old-fashioned concern for safety and
soundness. After decades in which the unfortunate experience of the 1920s and 1930s has
receded in memory, there is a tendency to question the value of prudential concerns. But, as we
approach regulatory reform, the old saying about
the relative values of an ounce of prevention and
a pound of cure is appropriate. Concerns recently expressed in this committee and elsewhere
about international lending, for example, amply
demonstrate that the best time to think through
appropriate approaches is before a problem
arises.
Against that general background, the main
lines of my own thinking about our approach
toward the regulation of depository institutions
can be summarized as follows:
1. Banks perform a critical role in the financial system and in the economy. Banking institutions, as operators of the payments system, as
custodians for the bulk of the liquid savings in
the economy, as essential suppliers of credit, and
as the link between monetary policy and the
economy, have a unique function in our economy.
2. The critical role of banks implies particular
governmental
concerns. Because of their role,
the deposit liabilities of banks, and the stability
of depository institutions generally, are protected to a degree by a governmental "safety n e t . "
The provision of that safety net requires and
justifies a certain amount of prudential regulation
and supervision to protect the government and
the public interest. The precise terms of this
" c o m p a c t " — t o assure efficiency, competitive
balance, and sensitivity to new needs—should be
reexamined periodically.
3. A bank cannot be wholly insulated from its
affiliates. In the nature of things, parts of an
organization under common management and, in
public perception, related to each other will, to
some degree, be affected by the fortunes of other
important parts. Consequently, concern about
the activities undertaken within a bank holding
company or otherwise within a consumer management structure is a natural and legitimate
extension of interest in the safety and soundness
of the bank itself. These activities may not
require the same degree of supervision as a bank,
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359
need not be frozen in an historical pattern, and
should be regularly reviewed in the light of
economic changes and the desirability of maintaining a reasonable competitive balance.
4. The central bank has an inherent
concern
with the evolving financial structure. The core
responsibilities of a central bank for economic
and financial stability entail concern over the
strength and stability of the banking system and
the consistency of the institutional structure with
the needs of monetary policy. Those concerns
are appropriately and necessarily reflected in an
ongoing presence in the regulation and supervision of the banking system.
BANKS AND THEIR
REGULATION
The public concern with the safety and soundness of depository institutions has historically
been related to the fact that these institutions
have been custodians of the bulk of the liquid
savings of the country, a situation that still holds.
That concern is interrelated with another pervasive public interest—protection of the payments
system. The individual components of the banking and payments system are, to a large extent,
mutually dependent; adverse developments in
one institution, particularly of substantial size,
can dramatically and suddenly affect other unrelated institutions, some of which may not even
have a business relationship with the institution
in difficulty. While secondary and tertiary effects
are, of course, present in some degree in the
failure of any business firm, seldom will the
effects be so potentially contagious or so disruptive as when the stability of the banking system
or the payments mechanism is at stake. Then,
serious implications for overall output, employment, and prices—indeed, for the entire fabric of
the economy—are apparent.
The first and most important line of defense is
the interest of banking institutions themselves in
maintaining the confidence of their customers.
But long ago, in establishing the Federal Reserve
System, the Federal Deposit Insurance Corporation, and the Federal Savings and Loan Insurance Corporation, the government determined
that normal market incentives and protections
needed to be supplemented by an official support
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Federal Reserve Bulletin • May 1983
apparatus. That support apparatus—importantly
reflected in access to the discount window at the
Federal Reserve and to deposit insurance—provides advantages in the competition for the public's funds. But there are offsetting costs as well
in, for instance, reserve requirements and insurance premiums.
More broadly, the protection provided on the
liability side of the balance sheet, in tempering
the discipline of the marketplace, can potentially
change attitudes and behavior over time with
respect to risk-taking. Consequently, the logical
extension of the public concern with the stability
of the banking system is a continuing interest in
avoiding excessive risk-taking, limiting the potential for contagious failures or drains upon the
public " b a c k s t o p " facilities. Those concerns are
reflected in a number of restrictions and regulations on how banks (or thrifts) can do business,
and the operations and assets of those institutions are examined periodically as part of a
continuing supervisory process.
The practical and ongoing issue in this area, it
seems to me, is not to revolutionize the basic
approach, but to achieve an appropriate balance—balance between desirable risk-taking and
safety, and balance among competing depository
and nondepository institutions. These considerations, for instance, are immediately relevant to
the discussion by the committee of the appropriate treatment of foreign lending and approaches
toward assuring the capital adequacy of banks
and thrift institutions.
One important area that is receiving attention
is the appropriate structure of deposit insurance.
The various insurance agencies have submitted
reports to the Congress suggesting ways to modify the current insurance system to achieve an
appropriate balance of market and supervisory
discipline; I have not reviewed those reports and
cannot comment on them specifically. But I do
welcome the process the Congress has set in
motion to consider the public policy questions in
this area, recognizing that deposit insurance has
become such a significant element in the support
apparatus for depository institutions that substantial change requires careful assessment of
the possible consequences.
One corollary of the need to protect the integrity of the payments system deserves mention. In
seeking an overall balance of protections and
restrictions for banks, we can, and should, avoid
competitive disadvantage to the depository institutions themselves; to do otherwise is to erode
the vitality and strength of the very sector of the
financial system deemed of special importance.
To the extent that other institutions operating
outside the " p r o t e c t e d " framework nonetheless
tend to " t a k e o v e r " the essential functions of
banks, there are three alternatives: we can encompass those institutions within the framework
of banking supervision in some respects (such as
reserve requirements on transactions balances);
we can, if consistent with other objectives, relieve the regulatory burden (such as by paying
interest on required reserves); or we can confine
the performance of certain essential banking
functions (such as third-party payments and direct access to the clearing mechanism) to banks
alone.
BANK HOLDING
COMPANY
REGULATION
In the framework of existing law and policy,
concern with the activities of banking organizations has not stopped with the bank itself. The
restrictions are importantly rooted in prudential
considerations; experience strongly suggests the
difficulty of insulating a bank from the problems
of a company affiliated with a bank through a
holding company. To be sure, the fortunes of the
bank and its affiliates can be (and are) separated
to a degree by restrictions on the transactions
among them; section 23A of the Federal Reserve
Act already contains a number of rules pertaining
to such transactions. But I doubt the insulation
can ever be made so complete—at least without
defeating the business purpose in the affiliation—
as to rely on those rules alone. The holding
companies themselves, the securities markets,
and the general public look upon these organizations as consolidated units. Our experience is
that difficulties in a nonbank affiliate can affect
the price and availability of funds to the bank (or
vice versa), even if transactions between the two
are controlled. The public realizes that a holding
company with a troubled nondeposit subsidiary
cannot be a source of strength to its deposittaking affiliates and will be under pressure to
Statements
draw funds from the bank, directly or indirectly,
to support other troubled operations. Moreover,
while financial flows among affiliates can be
circumscribed by regulation, management attention and expertise cannot be; and the more
diverse the area of activity, the less attention the
bank itself may receive at the top level.
Other concerns—potential conflicts of interest
and concentration of resources—can also be
addressed by law or regulation. But again, insulation is not likely to be complete.
At the same time, segregating certain activities
of a bank holding company outside the bank
itself may provide certain advantages. While,
from a safety and soundness standpoint, the
entities cannot be assumed to be entirely insulated from each other, segregation may well make it
easier to assure consistency and equity in the
application of those regulations appropriate to
particular activities conducted in either the bank
or an affiliate. That consideration, for instance,
could well be relevant in any extension of authority to bank holding companies to engage in
securities underwriting, in mutual funds, and in
insurance activities.
Regulations specific to such activities may not
reflect certain of the prudential concerns of bank
supervision; to that degree, nonbanking activities conducted by banking organizations may
have to conform to some rules that would not be
necessary or appropriate for nonbanking firms.
But there may also be advantages in combining
certain activities with a banking license; when
bank holding companies engage in nonbanking
activities we should seek to avoid competitive
advantages arising from the ability to draw upon
the implicit government support provided by the
banking organization as a whole. One consideration in this regard is the capitalization of the
nonbanking activity; a higher degree of leverage
in banking should not automatically extend to
nonbanking activities. Indeed, adequate capitalization of a bank holding company as a whole,
taking account of the particular nature of the
nonbanking activities, is important to the safety
and soundness of the bank.
In the end, the appropriate range of activities
for a bank holding company should remain, in
my judgment, a matter for determination by a
balance of public policy considerations; it should
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361
not be solely a matter of market incentives, and
some degree of supervisory oversight over the
activities of the holding company as a whole will
remain important. The traditional presumption of
some separation of banks from businesses engaged in a general range of commercial and
industrial activities, and vice versa, still seems to
me a reasonable starting point in approaching
particular questions. That separation is, at the
margin, arbitrary, but in a broad way it reflects
continuing concerns about risk, conflicts of interest between the bank as owner of a nonfinancial
firm and as creditor, and the implications of
excessive concentration of economic power, especially given the central place of banks in our
economy. Moreover, to the degree that affiliation
with a bank implies the need for some regulatory
or supervisory oversight, practical and desirable
limitations on the reach of such regulation into
industrial and commercial activities imply some
limitation on the scope of bank holding company
affiliations.
Within this general framework, the precise line
dividing what ought to be permissible for banking
organizations and what should be proscribed
does need reexamination in the light of current
market conditions, changes in technology, consumer needs, and the regulatory and economic
environment. Some activities now denied banks
would seem natural extensions of what these
institutions currently do, involving little additional risk or new conflicts of interest, and potentially yielding significant benefits to consumers
in the form of increased convenience and lower
costs. For some time, for instance, the Federal
Reserve has suggested that banking organizations be allowed to underwrite municipal revenue bonds, establish commingled investment accounts, and distribute mutual funds. Certain
brokerage activities have already been approved
within existing law, as have a wide range of data
processing services.
Other activities seem ripe for consideration,
but need a public airing of views and congressional consideration. One general category
would be further extension of brokerage activities related to the financial needs of bank customers, including sales of a variety of real estate,
insurance, and travel products. Some kinds of
insurance underwriting, beyond current limita-
362
Federal Reserve Bulletin • May 1983
tions to credit-related insurance, have been
urged by some.
Other activities that have been discussed
raised considerably greater questions in my mind
because of factors of risk or conflicts of interest
that could not be contained without the most
elaborate and self-defeating kinds of regulation.
Corporate securities underwriting, real estate
development, and, more generally, significant
equity positions in unrelated nonfinancial activities fall into that category.
In any event, to the extent that regulation is
needed, the goal should be to minimize the costs
and burdens of regulation consistent with the
public interest. For example, experience has
convinced us that the present statutory requirement for public hearing in the Bank Holding
Company Act sometimes leads to unnecessary
delays in the processing of applications. This
requirement could be modified to relax the requirement for public hearing, while retaining
discretion for the Federal Reserve Board to
conduct informal hearings in cases when public
comment is warranted. This change alone would
reduce significantly the time required to process
some applications filed under the provisions of
the Bank Holding Company Act. Also, the statutory requirements for approval of nonbanking
activities could be modified to place greater
emphasis on safety and soundness and less emphasis on the finding of net benefits, and provision could be made for the Board to follow more
expedited procedures in the processing of applications.
CONSISTENCY IN
REGULATIONS
BANK-THRIFT
The observation that thrift institutions have essentially become bank-like institutions is indisputable with respect to the powers they are
allowed to exercise; it is increasingly accurate
with respect to the powers they do exercise. But
questions are posed not just by the fact that
powers of thrift institutions have been expanded
to matters previously the province of commercial
banks alone; in important instances thrift powers
extend well beyond those available to banks.
Considerations of competitive equity alone
would seem to dictate that the special privileges
and restrictions of banks and thrifts be brought
into more coherent relationship.
The significance goes beyond equity considerations. In today's world, the kind of consideration I have just reviewed with respect to the
powers of banking organizations, flowing basically from banks' participation in the payments
mechanism, cannot be valid for commercial
banks alone; limitations on bank holding companies could not be effective to the extent thrift
instititutions, with the corresponding banking
powers, could simply substitute as a vehicle for
combining various activities. I recognize there
are difficult questions posed by the firms that
already have operations on both sides of the line
between commerce and thrift banking, but we
will need to find some way to resolve these
questions and establish a firmer policy for the
future if we are to bring about a rational structure
in this regard. The same consideration bears
upon a number of other issues—particularly
branching and interstate powers—when the differences between regulatory treatment of banks
and thrift institutions have become increasingly
anomalous.
The implication is not that all thrift institutions
and their holding companies must be regulated in
all ways like commercial banking organizations.
There may well be ways of distinguishing among
institutions, depending on the scope and extent
of their actual activities, which would allow us to
achieve necessary functional consistency and
assure the integrity of our policy intent, while
retaining the advantages of a degree of specialization among financial institutions. As I understand it, the Congress had such concerns in mind
in linking the more liberal treatment of unitary
savings and loan holding companies in important
respects to satisfying a certain asset test originally developed for tax purposes. However, that
asset test—the proportion of an institution's
portfolio in real estate mortgages, government
securities, and certain other "qualified" assets—
seems to me inadequate for the purpose. The
interest of investment companies and other nonbanking firms in acquiring savings and loan associations suggests that such an asset limitation
would not deter substantial nonbank participation in deposit-taking and payments services.
Statements
FEDERAL-STATE
RELATIONS
For more than a century this country has maintained a dual system for the regulation and
supervision of banking. On the whole, this dual
banking system has played a useful and constructive role in encouraging innovation in the financial regulatory environment and in helping to
accommodate local differences in the needs of
banking organizations and their customers.
The system has worked as well as it has
because to a significant degree the goals and
techniques of regulation were commonly shared
and the divergences between federal and state
treatment were kept within tolerable bounds. As
I mentioned earlier, this comity appears to be
breaking down, as states consider vast expansions of powers for banks and thrifts that go far
beyond standards allowed by federal law and yet
still rely on federal protections for their statechartered institutions. The issue will need to be
addressed by the Congress as to whether it is
properly a federal prerogative to establish the
outer bounds within which the dual banking
system may continue to be a useful and constructive force.
The geographic scope of depository institutions has long been a key question of federalstate relations. The proliferation of nonbank affiliates of bank holding companies operating
across state lines, the loan production and Edge
Act offices, the integrated national markets for
money and credit at the wholesale level, the
current action of some states themselves to permit entry of out-of-state banking organizations,
the broadened power of thrift institutions able to
operate interstate, and the credit card itself have
by now led to interstate banking de facto for
most banking services. But, as a general matter,
we still prohibit on an interstate basis that portion of retail banking and some other services
that require a brick and mortar presence, and we
force other activities into " u n n a t u r a l , " and less
efficient, channels.
I believe your deliberations will need to consider whether the time has come to rationalize
this situation. Appropriately structured, banking
across state lines can increase competition for
the delivery of financial services and by so doing
should enable users of these services to obtain
to Congress
363
them at lower cost and in a more convenient
manner. Indeed, broadened geographic scope
can even serve to reduce risk to the banks
themselves, and perhaps reduce pressures to
extend their franchise to less suitable areas of
activity. I recognize the controversies and sensitivities surrounding the McFadden Act and
Douglas amendment. I also know a number of
approaches could be taken in easing or removing
those restrictions; a period of transition may still
be useful. Indeed, I am encouraged that some
states have already chosen to take the lead. But I
sense the time for congressional review of the
issue is here.
REG ULA TOR Y STR UCTURE
The rapid evolution of the financial system inevitably raises new questions about how the government's role in regulation should be organized
and implemented. As you know, this subject is
being reviewed by a task group under the leadership of Vice President Bush, on which I participate. Without going into any detail on the pros
and cons of the many different ways the regulatory agencies could be organized, I do want to
comment briefly on the implications, as I see
them, for carrying out the basic responsibilities
of the central bank for the strength and stability
of the financial system.
The argument has sometimes been put forward
that supervision and regulation of the banking
system can be divorced from monetary policy,
and that the Federal Reserve ought to stick to the
latter. That argument is premised on a view of
monetary policy and inherent Federal Reserve
responsibilities that seems to me far too narrow;
pressed to its logical conclusion, both monetary
policy and supervision would be gravely weakened. The basic objective of the Federal Reserve—and the principal reason for its very
founding—is to contribute to a stable and
smoothly functioning financial system, one that
is capable of supporting and responding to the
financial requirements of the nation under a
variety of circumstances. Out of those concerns,
the Federal Reserve Act explicitly provided the
Federal Reserve with both an operational role in
the payments mechanism and wide supervisory
364
Federal Reserve Bulletin • May 1983
authority, and I believe those concerns remain
valid today.
Over the past 70 years of the Federal Reserve's existence, the specifically monetary policy function—explicit attention to control of the
total supply of money and credit and stabilization
policy—has been developed and refined. But
monetary and credit policy works through the
banking and payments system and the individual
institutions within it; in the last analysis monetary policy cannot be successful independent of
the strength and resiliency of that banking system. Conversely, history is filled with examples
of a breakdown in the banking system overriding, in its adverse economic consequences, the
effects of more general policy instruments.
The interrelationships are not theoretical; they
are embedded in our daily operating experience.
A key "monetary policy" instrument is the administration of the discount window, through
which we advance funds to meet temporary
liquidity needs and can act, if necessary, to meet
our responsibilities as lender of last resort to the
financial system and to the economy as a whole.
By its nature, provision of funds through the
discount window presumes an intimate awareness of the circumstances of the particular borrowers, skill and experience in financial analysis,
and a degree of supervisory authority.
More broadly, the Congress and others, quite
properly and understandably, look to the Federal
Reserve for advice and, when necessary and
possible within the framework of our statutes,
for action in dealing with points of immediate
financial strain and crisis. But those responsibilities seem to me to entail a continuing responsibility for participation in the regulatory structure, "hands o n " supervisory capability, and a
strong voice in the evolution of the banking
system.
Moreover, monetary policy, as more conventionally defined, needs to be conditioned by
circumstances as they exist in the financial
world. A financial system that is too fragile, for
example, might constrain our flexibility to pursue certain goals—most especially that of combating inflation. More general tendencies in the
financial system—such as the shift toward increasingly liquid assets in recent years—can affect the behavior of money and other policy
indicators that we rely upon in conducting monetary policy, and in some cases could have destabilizing effects on financial markets and institutions.
None of this dictates a particular regulatory
structure; indeed, there are areas of regulation or
supervision of only peripheral interest to our
central responsibilities. But we do feel that a
continuing role in regulation and supervision is
an inherent part of effective central banking.
365
Announcements
PRICING FEDERAL RESERVE
FLOAT
The Federal Reserve Board has approved procedures to eliminate or price the remaining categories of Federal Reserve check float. This type of
float is the value of checks for which the Federal
Reserve has given credit to the institution that
deposited the checks for collection, but for
which the Federal Reserve has not yet received
payment.
The Board acted under the Monetary Control
Act of 1980, which requires the System to reduce
and price remaining Federal Reserve float. The
Board's approval of these procedures is the
latest in a series of actions to fulfill these requirements.
In November 1982, the Board requested public
comment on a proposal to charge depository
institutions for large ($50,000 or more) interterritory checks as a result of a wire notification from
the returning Federal Reserve Bank when such a
check is returned. Interterritory returned checks
cause Federal Reserve float because Reserve
Banks are unable to debit immediately the original depositing institution's account for the returned checks.
After reviewing comment received, the Board
decided not to adopt the proposal. As suggested
by commenters, the Board deferred credit for
interterritory returned items for one day. This
one-day deferral of credit will eliminate $130
million of interterritory return-item float. This
procedure will be implemented in August 1983 to
provide Reserve Banks and depository institutions sufficient time to make necessary operational changes.
In April 1982, the Board proposed an amendment to Regulation J (Collection of Checks and
Other Items and Wire Transfers of Funds) to
require paying banks to pay for checks delivered
or made available to them on days the paying
banks are closed and on which the Reserve Bank
is open. Such days consist of midweek closing
days—regular weekdays on which a depository
institution closes as permitted by state law—and
nonstandard holidays—days on which the paying
bank is closed because of a state or local holiday.
In response to comment received, the Board
did not adopt the proposed amendment at this
time. As an alternative, the Board decided to
eliminate or price float arising from midweek
closings and nonstandard holidays, beginning in
October 1983, by giving Reserve Banks the following three options to deal with such float:
1. A Reserve Bank could modify its availability schedule for local depositors so that credit for
checks drawn on closed institutions would be
deferred an additional day.
2. A Reserve Bank could modify its current
practice of posting funds received for the account of the institution on the day the institution
is closed.
3. A Reserve Bank could price all or any remaining float arising f r o m midweek closings or
nonstandard holidays by including the value of
such float in the cost of the Federal Reserve's
check collection service.
The Board also had requested comment in
November 1982 on proposals to price intraterritory transportation float and the other remaining
categories of check float. The Board has approved the proposals to price these categories of
check float by adding the cost of such float to the
cost of the check collection service. The addition
of these costs to the costs of the check collection
service will begin in October 1983.
With the implementation of these procedures,
all Federal Reserve check float arising from the
provision of check collection services to depository institutions will be eliminated or priced.
INTERIM FEE
SCHEDULE
The Federal Reserve Board has approved an
interim fee schedule to be used in a pilot program
for making corporate trade payments by elec-
366
Federal Reserve Bulletin • May 1983
tronic means through automated clearinghouses
(ACHs).
Currently, A C H payments are made chiefly in
connection with consumer transaction deposits.
A study carried out by the National Automated
Clearing House Association indicated that corporations are interested in making trade payments through ACHs. The use of the A C H for
corporate trade payments is scheduled to begin
during June 1983, with a limited number of
originators and recipients. It is anticipated that
the pilot will be completed by the end of 1983 at
which time the use of the ACH for corporate
trade payments will be available to any company
that wishes to make use of the service.
The Board approved the following interim fee
schedule for the pilot program, effective June 2,
1983:
Item
Cents
Intra-ACH
Debits originated
Credits received
Each addenda record after the first 15
4.5
4.5
1
Inter-ACH
Debits originated
Credits received
Each addenda record after the first 15
7.5
7.5
2
New York intra-ACH
Debits originated
Credits received
1.5
1.5
New York inter-ACH
Debits originated
Credits received
Each addenda record after the first 15
4.5
4.5
1
PROPOSED
ACTION
The Federal Reserve Board has proposed for
public comment certain criteria for adding depository institutions to the Federal Reserve check
collection services as part of a program to accelerate the collection of checks. Comments must
be received by June 17, 1983.
REGULATION
D:
AMENDMENTS
The Federal Reserve Board has approved
amendments to its Regulation D (Reserve Requirements of Depository Institutions) designed
to reduce the deposit-reporting burden for small
institutions. The action, taken after consideration of comment received on a proposal published in March, is effective April 28, 1983.
The Board's action implements provisions of
the Garn-St Germain Depository Institutions
Act of 1982 directing the Board to reduce the
administrative burden associated with deposit
reporting at commercial banks and thrift institutions with $2.1 million or less in total reservable
liabilities. In implementing the act the Board is to
take into account its responsibility for insuring
compliance with the reserve requirement provisions of Regulation D and for collecting data
necessary for monitoring and controlling the
monetary and credit aggregates.
Currently, small depository institutions either
are excused from reporting requirements or are
required to file a report of at least 22 items
weekly or quarterly.
The principal features of the amendments follow:
1. Institutions (other than U.S. branches and agencies of foreign banks or Edge and Agreement corporations) with $2.1 million or less in reservable liabilities
(fully exempt institutions) will be subject to a three-tier
reporting system, based on their total deposits: Available data will be used to estimate deposits at fully
exempt institutions with less than $2 million in total
deposits; fully exempt institutions with total deposits
of at least $2 million but less than $15 million will file
an annual two-item report (FR 2910a) covering one
day each June; fully exempt institutions with $15
million or more in total deposits will file a condensed
six-item report (FR 2910q) for the same week each
quarter.
This system in essence will keep the preponderance
of institutions previously deferred from reserve and
reporting requirements free of reporting requirements,
will convert current quarterly reporters that become
fully exempt from reserve requirements into annual
reporters, and will convert weekly reporters that become fully exempt from reserve requirements into
quarterly reporters. The number of items reported by
the latter two groups also will be substantially reduced.
2. All nonexempt quarterly respondents will begin
reporting on the same schedule as those fully exempt
institutions that will file the new, reduced quarterly
report. At present, institutions that report quarterly do
so on a staggered basis, one-third each month.
3. U.S. branches and agencies of foreign banks
and Edge and Agreement corporations will continue to
file a weekly report of transaction accounts, other
deposits, and vault cash (FR 2900) and the weekly
Announcements
report of certain Eurocurrency transactions (FR 2950
and FR 2951), even if the family of related institutions
has less than $2.1 million in reservable liabilities.
PROPOSED
367
about the number of consumers who are entering
into such agreements without the benefit of adequate cost disclosures.
The Board welcomes public comment on this
proposal.
LEGISLATION
The Federal Reserve Board sent to the Congress
on April 18, 1983, proposed legislation for simplifying the Consumer Leasing Act. The act, passed
in 1976, applies to personal property leased for
more than four months for personal, family, or
household use.
The Board said it is proposing simplification of
the act to reduce the number and complexity of
the disclosures, thereby lessening the burden of
compliance on creditors and highlighting important information for consumers.
In addition, the draft legislation adds coverage
of rental-purchase agreements. These agreements are not presently covered by either the
Consumer Leasing Act or the Truth in Lending
Act. Under a rental-purchase agreement, the
consumer rents the property (generally a television or other home appliance) for a term of one
week or one month. The rental is automatically
renewed with each subsequent payment, and
after a certain number of payments the consumer
can become the owner of the property for little or
no additional money.
The draft legislation proposes coverage of
these agreements because of public concern
CHANGE IN BOARD
STAFF
The Board has announced the resignation of Joe
M. Cleaver, Assistant Director, Division of Research and Statistics, effective May 20, 1983.
SYSTEM
MEMBERSHIP:
ADMISSION OF STATE BANKS
The following banks were admitted to membership in the Federal Reserve System during the
period April 11 through May 10, 1983:
Arizona
Phoenix
Western Security Bank
Colorado
Meeker
Peoples State Bank
Florida
Naples
Collier Bank
Illinois
Schaumburg
Northern Trust Bank/
Woodfield
Texas
Gainesville
North Texas Bank and Trust
Odessa
Odessa Industrial Bank
369
Legal Developments
AMENDMENTS
TO REGULATION
D
The Board of Governors adopted in final form amendments to Regulation D—Reserve Requirements of
Depository Institutions (12 C.F.R. Part 204) to reduce
substantially the amount of reporting required from
most depository institutions that have total reservable
liabilities of $2.1 million or less. Such institutions
generally will be required to submit either a six item
report each calendar quarter, a two item report once
each year, or no report at all, depending upon their
total deposit levels.
Effective April 28, 1983, sections 204.3 of Regulation D is amended as set forth below:
Part 204—Reserves
of Depository
Institutions
1. By amending section 204.3(c) by removing the first
sentence, "Computation of required reserves.", and
inserting in its place, "Computation of required reserves for institutions that report on a weekly basis.";
and by revising paragraphs (a) and (d) as set forth
below.
Section 204.3—Computation and Maintenance
(a) Maintenance of required reserves. A depository
institution, a U.S. branch or agency of a foreign bank,
and an Edge or Agreement Corporation shall maintain
reserves against its deposits and Eurocurrency liabilities in accordance with the procedures prescribed in
this section and § 204.4 and the ratios prescribed in
§ 204.9. Penalties shall be assessed for deficiencies in
required reserves in accordance with the provisions of
§ 204.7. Every depository institution, U.S. branch or
agency of a foreign bank, and Edge or Agreement
Corporation shall file reports of deposits in accordance
with the instructions of the Board, based on the level
of its deposits and reservable liabilities consistent with
the Board's need for data to carry out its responsibility
to monitor and control monetary and credit aggregates. For purposes of this part, the obligations of a
majority owned (50% or more) U.S. subsidiary (except
an Edge or Agreement Corporation) of a depository
institution shall be regarded as obligations of the
parent depository institution.
^ ***
(d) Computation of required reserves for institutions
that report on a quarterly basis. For a depository
institution that is permitted to report quarterly, required reserves are computed on the basis of the
depository institution's daily average deposit balances
during a seven-day computation period that begins on
the third Thursday of March, June, September, and
December. In determining the reserve balance that
such a depository institution is required to maintain
with the Federal Reserve, the average daily vault cash
held during the computation period is deducted from
the amount of the institution's required reserves. The
reserve balance that is required to be maintained with
the Federal Reserve shall be maintained during a
corresponding period that begins on the fourth Thursday following the end of the institution's computation
period and ends on the third Wednesday after the close
of the institution's next computation period. Such
reserve balance shall be maintained in the amount
required on a daily average basis during each week of
the quarterly reserve maintenance period.
2. The Board also amends section 204.3(c), published
at 47 FR 44707, October 12, 1982, to become effective
February 2, 1984, by removing the first sentence,
"Computation of required reserves.", and inserting in
its place, "Computation of required reserves for institutions that report on a weekly basis."; and by revising section 204.3(d), also published at 47 FR 44707, to
become effective February 2, 1984, as set forth below:
(d) Computation of required reserves for institutions
that report on a quarterly basis. For a depository
institution that is permitted to report quarterly, required reserves are computed on the basis of the
depository institution's daily average deposit balances
during a seven-day computation period that begins on
the third Tuesday of March, June, September, and
December. In determining the reserve balance that
such a depository institution is required to maintain
with the Federal Reserve, the daily average vault cash
held during the computation period is deducted from
the amount of the institution's required reserves. The
reserve balance that is required to be maintained with
the Federal Reserve shall be maintained during a
corresponding period that begins on the fourth Thursday following the end of the institution's computation
370
Federal Reserve Bulletin • May 1983
period and ends on the fourth Wednesday after the
close of the institution's next computation period.
AMENDMENTS
TO REGULATION
E
The Board of Governors has adopted technical amendments to Regulation E (Electronic Fund Transfers)
12 C.F.R. Part 205 to conform certain provisions that
refer to Regulation Z (Truth in Lending). These
changes reflect redesignated sections in revised Regulation Z.
Effective April 1, 1983, sections 205.5, 205.6, 205.9
and 205.11 are amended as set forth below.
Part 205—Electronic
Fund
assessed against the account during the statement
period for electronic fund transfers or the right to
make such transfers, or for account maintenance.
Transfers
1. By revising
§§ 205.5(c)(i) ,(ii) ,205.5(c)(2)(i),
205.6(d)(l)(i), 205.9(b)(3), and 205.1 l(i) to refer to the
revised section of Regulation Z, to read as follows:
Section 205.11—Procedures for Resolving
Errors
(i) Relation to Truth in Lending. Where an electronic
fund transfer also involves an extension of credit
under an agreement between a consumer and a financial institution to extend credit when the consumer's
account is overdrawn or to maintain a specified minimum balance in the consumer's account, the financial
institution shall comply with the requirements of this
section rather than those of 12 C.F.R. 226.13(a), (b),
(c), (e), (f), and (h).
AMENDMENTS
TO REGULATION
Z
Section 205.5—Issuance of Access Devices
(c) Relation to Truth in Lending
Q)
***
(ii) Addition to an accepted credit card, as defined
in 12 C.F.R. 226.12(a)(2), footnote 21 (Regulation
Z), of the capability to initiate electronic fund
transfers; and
(2) ***
(i) Issuance of credit cards as defined in 12 C.F.R.
226.2(a)(15);
Section 205.6—Liability of Consumer for
Unauthorized Transfers
(d) Relation to Truth in Lending.
(j) ***
(i) Was initiated by use of an access device that is
also a credit card as defined in 12 C.F.R.
226.2(a)(15), or
Section 205.9—Documentation of Transfers
(b) Periodic Statements. ***
(3) The total amount of any fees or charges, other
than a finance charge under 12 C.F.R. 226.7(f),
The Board of Governors has amended revised Regulation Z (12 C.F.R. Part 226) to implement Truth in
Lending amendments made in the Garn- St Germain
Depository Institutions Act of 1982. The amendments
delete from coverage arrangers of credit and exempt
certain student loans. For purposes of administrative
enforcement, two footnotes relating to disclosure errors caused by the use of faulty calculation tools are
also amended.
Effective October 1, 1982, sections 226.2, 226.3,
226.14 and 226.22 are amended as set forth below:
Part 226—Truth in Lending
1. By removing and reserving paragraph (a)(3), and
reserving footnote 2 to paragraph (a)(3) of § 226.2;
removing paragraph (a)(17)(ii) of § 226.2 and redesignating paragraphs (a)(17)(iii), (iv), and (v) as paragraphs (a)(17)(ii), (iii), and (iv), respectively; adding a
new paragraph (f) to § 226.3; and removing the last
sentence of both footnote 31a to § 226.14 and footnote
45a to § 226.22, to read as follows:
Section 226.3—Exempt Transactions
(f) Student loan programs. Loans made, insured, or
guaranteed pursuant to a program authorized by Title
IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.).
Legal Developments
BANK HOLDING COMPANY AND BANK
MERGER
ORDERS ISSUED BY THE BOARD OF GOVERNORS
Orders Under Section 3 of Bank
Company Act
Holding
Banco De Vizcaya, S.A.,
Bilbao, Spain
Order Approving Acquisition
of a Bank
Banco de Vizcaya, S.A., Bilbao, Spain, has applied
for the Board's approval under section 3(a)(1) of the
Bank Holding Company Act (12 U.S.C. § 1842) to
become a bank holding company through the acquisition of 68 percent of the voting shares of Banco
Comercial de Mayaguez, Mayaguez, Puerto Rico
("Bank").
Notice of the application, affording opportunity for
interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing comments and views has expired, and
the Board has considered the application and all
comments received, including the comments of certain
minority shareholders of Bank ("Protestants"), in
light of the factors set forth in section 3(c) of the Act.
Banco de Vizcaya is the fifth largest publicly owned
banking institution in Spain, with total assets of $12
billion and total deposits of $7.8 billion.1 Banco de
Vizcaya presently operates a branch in New York and
agencies in Miami and San Francisco, but does not
engage directly or indirectly in any nonbanking activities in the United States. Banco de Vizcaya proposes
to acquire the shares of Bank as part of the purchase of
the assets of Banco Occidental, S.A., Madrid, Spain,
from the Fund for the Guarantee of Deposits in
Banking Institutions, Madrid, Spain (the "Fund").
The Fund is an agency of the Spanish Government
established for the purpose of aiding and administering
ailing financial institutions in Spain, and acquired the
assets of Banco Occidental, including the shares of
Bank, pursuant to its emergency powers. Banco de
Vizcaya has been awarded the purchase of the assets
of Banco Occidental by the Fund, and has taken
possession of those assets except for the shares of
Bank, which have been retained by the Fund pending
Board action on this application. 2
1. All banking data for Applicant are as of September 30, 1982.
2. Protestants allege that Applicant and the Fund have each violated the BHC Act by acquiring the assets of Banco Occidental, which is
itself a registered bank holding company (67 FEDERAL RESERVE
BULLETIN 186 (1981)), without the prior approval of the Board.
Protestants also allege that the Fund has violated the BHC Act by
holding the shares of Bank pending Board action on this application.
The record does not support the conclusion that Applicant has already
acquired control of the shares of Bank. Applicant has not taken
371
Bank, with total assets of $254 million and total
deposits of $191.2 million controls approximately 1.6
percent of the total deposits in commercial banks in
Puerto Rico and is the tenth largest commercial banking organization in Puerto Rico. 3 Inasmuch as Applicant does not conduct any banking operations or other
business in the Commonwealth of Puerto Rico, consummation of the proposed transaction would have no
adverse effects on either existing or potential competition in any relevant market and would not increase the
concentration of resources in any relevant market.
Therefore, the Board concludes that competitive considerations are consistent with approval of the application.
Based on the entire record, including comments
made by the Protestants regarding the financial
strength of the Applicant, the Board is of the view that
the financial and managerial resources of the Applicant appear generally satisfactory and its future prospects appear favorable. The financial and managerial
resources of Bank appear generally satisfactory and
the future prospects of Bank appear favorable, especially in light of commitments made by Applicant to
inject additional capital into Bank. Based on these and
other commitments, the Board has determined that
considerations relating to banking factors are consistent with approval of this application.
Affiliation with Applicant will permit Bank to develop an international banking department as well as to
continue its current retail services. Thus, considerations relating to the convenience and needs of the
community to be served are consistent with approval.
Accordingly, the Board has determined that consummation of the proposed transaction would be in the
public interest.
Based upon the foregoing, including all the facts of
record and the commitments made by Applicant, the
Board has determined that the application should be
and hereby is approved. The transaction shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
possession of or voted the shares of Bank, and has applied for the
Board's approval for its proposed acquisition. On the basis of the
entire record, the Board has determined that Applicant has not
acquired control of Bank under the BHC Act. Protestants' allegation
that the Fund has violated the BHC Act is not relevant to this
application. Moreover, the Board has determined that, under the
circumstances of this case, the Fund, which exercises functions
similar to those of the Federal Deposit Insurance Corporation, has not
violated the BHC Act. The Board has also determined that the
allegations made by Protestants regarding the fairness of the proposed
acquisition by Applicant to the minority shareholders do not, in light
of the facts of this case, reflect adversely on the managerial factors of
Applicant and do not warrant denial of this application.
3. All banking data for Bank are as of December 31, 1982.
372
Federal Reserve Bulletin • May 1983
by the Federal Reserve Bank of N e w York, under
delegated authority.
By order of the Board of Governors, effective
April 19, 1983.
Voting for this action: Vice Chairman Martin and Governors Partee, Teeters, Rice, and Gramley. Absent and not
voting: Chairman Volcker and Governor Wallich.
JAMES M C A F E E ,
[SEAL]
Associate
Secretary
of the Board
Northwest Kansas Banc Shares,
Hutchinson, Kansas
Southwest Kansas Banc Shares,
Hutchinson, Kansas
Santa Fe Trail Banc Shares,
Hutchinson, Kansas
Arkansas Valley Banc Shares,
Hutchinson, Kansas
Order Approving Acquisition
Holding
Company
of Shares of a Bank
Northwest Kansas Banc Shares, Inc. ("Northwest"),
Southwest Kansas Banc Shares, Inc. ("Southwest"),
Santa Fe Trail Banc Shares, Inc. ("Santa Fe"), Arkansas Valley Banc Shares, Inc. ("Arkansas"), all in
Hutchinson, Kansas (together "Applicants"), each a
registered one-bank holding company within the
meaning of the Bank Holding Company Act as amended, 12 U.S.C. § 1841 et seq. ("BHC Act"), have
applied for the Board's approval under section 3(a)(3)
of the BHC Act, 12 U . S . C . § 1842(a)(3), to acquire
approximately 16.7 percent each of the voting shares
of Garden Banc Shares, Inc., Hutchinson, Kansas
("Garden"), and thereby indirectly acquire an interest
in The Fourth Bank of Garden City, N . A . , Garden
City, Kansas ("Bank"), a de novo bank. 1
Notice of these applications, affording opportunity
for interested persons to submit comments and views,
has been given in accordance with section 3(b) of the
BHC Act. The time for filing comments and views has
expired and the Board has considered all comments
1. Under section 3(a)(3) of the BHC Act, a bank holding company
may not, without the prior approval of the Board, acquire directly or
indirectly more than five percent of the voting shares of a bank. The
Board has held that this requirement applies to the acquisition by a
bank holding company of shares of another bank holding company.
State Street Boston Corporation, 67 FEDERAL RESERVE BULLETIN
862 (1981).
received in light of the factors set forth in section 3(c)
of the BHC Act, 12 U . S . C . § 1842(c).
Each Applicant is a one-bank holding company by
virtue of its control of a bank located in Kansas.
Northwest controls The Trego-Wakeeney State Bank,
Wakeeney, Kansas, with deposits of $28.9 million. 2
Southwest controls The First National Bank of
Meade, Meade, Kansas, with deposits of $25.4 million. Santa Fe controls Haskell County State Bank,
Sublette, Kansas, with deposits of $28.6 million. Arkansas controls The Farmers State Bank, Yoder,
Kansas, with deposits of $9.4 million.
Arkansas, Santa Fe, and Southwest are affiliated
through common management and shareholders. 3
Principals of these Applicants will also serve as directors and officers of Garden and Bank and will own
shares of Garden in their individual capacity. 4 The
remaining 25 percent of Garden's voting shares will be
owned by unaffiliated individual investors.
Inasmuch as Bank is a de novo bank, the Board
views consummation of the proposed transaction as
procompetitive. Accordingly, the Board concludes
that the proposal will not have adverse effects on
competition in any relevant area and that the competitive effects are consistent with approval of the applications.
The financial and managerial resources of Applicants, their banking subsidiaries and Bank are regarded as generally satisfactory and their future prospects
2. All financial data are as of December 31, 1981.
3. The fourth, Northwest, is majority-owned by an individual who
is not a shareholder, director or officer of the other three Applicants.
Northwest holds approximately 4 percent of the voting shares of each
of the other three Applicants. Arkansas and Santa Fe hold approximately 4.5 percent of the voting shares of Northwest.
4. Pursuant to the Supreme Court's decision in Whitney National
Bank in Jefferson Parish v. Bank of New Orleans <& Trust Company,
379 U.S. 411, 419 (1965), the Board may not approve an application
that would result in a violation of a valid State law. Kansas law
prohibits the formation of a bank holding company defined as a
company that directly or indirectly owns or controls or holds with
power to vote 25 percent or more of the voting shares of two or more
banks, or controls the election of a majority of the directors of two or
more banks. Based on opinions of the Kansas Bank Commissioner
and the Kansas Attorney General, the Board recently approved
applications by these Applicants, each a one-bank holding company
located in Kansas, to acquire approximately 20.06 percent of the
voting shares of another one-bank holding company located in Kansas, Northwest Kansas Banc Shares, Inc., et al., 69 FEDERAL
RESERVE BULLETIN 98 (1983); see also, Sierra Petroleum
Company,
Inc.
& K&B
Producers,
Inc.,
6 3 FEDERAL RESERVE B U L L E T I N 9 3 8
(1977).
ki light of the similarity of that proposal to the present one, the
Board believes that the proposed acquisition of Garden by Applicants
is consistent with state law. In addition, as reflected in this Order, the
proposal is consistent with competitive, financial and convenience
and needs criteria of the BHC Act. Moreover, as it concluded in
Northwest, the Board does not believe that any regulatory purpose
would be served in requiring Applicants to file an application and
register as a single multi-bank holding company because each Applicant is already a registered bank holding company subject to the
Board's supervision.
Legal Developments
appear favorable. The Board has indicated on previous
occasions that a holding company should serve as a
source of strength to its subsidiary banks, and that the
Board would closely examine the condition of an
applicant in each case with this consideration in mind.
Although each of the Applicants will incur some
acquisition debt, the Board concludes that the amount
of debt involved in each case would not preclude
Applicants from serving as a source of strength to
Bank and their subsidiary banks. Accordingly, considerations relating to banking factors are consistent with
approval of these applications.
Since Bank is a de novo institution, Bank will serve
as a new source of banking services in the market.
Thus, the Board believes that considerations relating
to the convenience and needs of the community to be
served lend some weight towards approval of these
applications. Accordingly, it is the Board's judgment
that consummation of Applicants' acquisition of
shares of Bank would be in the public interest and that
the applications should be approved.
On the basis of the record, the applications are
approved for the reasons summarized above. The
acquisition of shares of Bank shall not be made before
the thirtieth 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 Kansas City
pursuant to delegated authority.
By order of the Board of Governors, effective
April 5, 1983.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Teeters, and Gramley. Absent and
not voting: Governor Rice.
JAMES M C A F E E ,
[SEAL]
Associate
Secretary
of the Board
W . T . B . Financial Corporation,
Spokane, Washington
Order Approving
Acquisition
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 one-bank holding company by virtue of
its control of Washington Trust Bank, Spokane, Washington ("Washington Bank"), is the eighth largest
commercial banking organization in Washington, with
total domestic deposits of $320 million, representing
1.4 percent of the total deposits in commercial banks
in the state. 1 Bank is the fifteenth largest commercial
banking organization in Washington, with deposits of
$70.2 million, representing 0.4 percent of the total
deposits in commercial banks in the state. Consummation of the proposed transaction would increase Applicant's share of the total deposits in commercial banks
in the state by 0.4 percent and its rank would remain
unchanged. Accordingly, the Board concludes that
consummation of the proposed transaction would not
have a significant effect on the concentration of banking resources in the state of Washington.
Both Applicant and Bank compete in the Moses
Lake/Warden banking market. 2 The four largest commercial banking organizations in the Moses Lake/
Warden banking market control 89.4 percent of total
deposits in commercial banks in the market. 3 Applicant, the fifth largest of six commercial banking organizations in this market, operates two branches which
hold deposits of $11.2 million, representing 9.8 percent
of the total deposits in commercial banks in the
market. 4 Bank is the smallest banking organization in
the market with deposits of $0.9 million, representing
0.8 percent of the total deposits in commercial banks
in the market. Acquisition of Bank would increase
Applicant's share of the total deposits in commercial
banks in the market to 10.6 percent; and Applicant's
rank in the market would remain unchanged.
Consummation of the proposed transaction would
eliminate existing competition between Applicant and
Bank in the Moses Lake/Warden banking market;
however, the following and other facts of record
mitigate the competitive effects of this transaction.
First, the level of concentration in the market is due, in
of Bank
W.T.B. Financial Corporation, Spokane, Washington,
a bank holding company within the meaning of the
Bank Holding Company Act (12 U.S.C. § 1841 et seq.)
("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 Security Bank of Washington, Ephrata, Washington.
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.
373
1. Unless otherwise indicated, all banking data are as of September 30, 1982.
2. The Moses Lake/Warden banking market is approximated by
320 square miles of southeastern Grant County, Washington, and
includes the cities of Moses Lake and Warden.
3. The Herfindahl-Hirschman index ("HHI") of the Moses Lake/
Warden market is 2284 and will increase by 16 points to 2300 upon
consummation. Under the Department of Justice merger guidelines, in
a market where the post-merger HHI is over 1800, the Department is
unlikely to challenge a merger that produces an increase in the HHI of
less than 50 points.
4. All market data are as of June 30, 1982, and include the deposits
held by Fidelity Mutual Savings Bank, which was merged into First
Interstate Bank of Washington on March 15, 1983.
374
Federal Reserve Bulletin • May 1983
large part, to the market shares of the two leading
firms which together control approximately 54.6 percent of the market's deposits. In addition, Bank is not
a strong competitor in the market. In this regard, since
its opening in 1978, the share of the market's deposits
held by Bank's branch has declined and, absent affiliation with Applicant, the branch likely would have
been closed by Bank. Based on the foregoing and
other facts of record, the Board concludes that the
competitive effects of the transaction would not be so
serious as to warrant denial of the proposal.
The Board has considered also the effects of this
acquisition on probable future competition in light of
its proposed guidelines for assessing the competitive
effects of bank holding company acquisitions and
mergers. 5 In this regard, there are a number of markets
in which Bank or Applicant, but not both, competes.
With respect to those markets in which Bank competes and in which Applicant is not now represented,
under the Board's existing standards none of these
markets is considered attractive for de novo entry, and
it appears unlikely that Applicant would enter these
markets by alternative means. With respect to those
markets where Applicant competes and in which Bank
is not now represented, because of its size, Bank does
not appear to be a probable future entrant into any of
these markets. In light of these facts, the Board
concludes that the acquisition would not have a substantial adverse effect on probable future competition
in any relevant area. Thus, the Board concludes
competitive considerations are consistent with approval of the application.
The financial and managerial resources and future
prospects of Applicant, its subsidiaries and Bank are
regarded as generally satisfactory. Although Applicant
will incur debt in connection with the proposed acquisition, Applicant appears able to meet its debt-servicing requirements without adversely affecting Washington Bank or Bank. Thus, banking factors are
consistent with approval. In addition, Applicant will
assist Bank to expand its services to include trust
services, a leasing program and ATMs. In light of the
proposed expansion in services, the Board concludes
that considerations relating to the convenience and
needs of the communities to be served lend some
weight toward approval of the application and outweigh any slightly adverse competitive effects that
may result from consummation of the proposal. Accordingly, the Board concludes that consummation of
5. 47 Federal Register
Corporation,
National
9017 (March 3, 1982). See also,
Shawmut
6 8 F E D E R A L RESERVE B U L L E T I N 3 0 9 ( 1 9 8 2 ) ;
Colorado
Bankshares,
Inc.,
553(1982); Old Kent Financial
BULLETIN 102 (1983).
68
FEDERAL
Corporation,
RESERVE
BULLETIN
69 FEDERAL RESERVE
the proposed transaction would be in the public interest and that the application should be approved.
On the basis of the record, the application is approved for the reasons summarized above. The acquisition of Bank 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 of Governors or by the Federal
Reserve Bank of San Francisco pursuant to delegated
authority.
By order of the Board of Governors, effective
April 28, 1983.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Rice, and Gramley. Absent and not
voting: Governor Teeters.
WILLIAM W .
[SEAL]
Secretary
Orders Under Section 4 of Bank
Company Act
WILES,
of the Board
Holding
Independent Bankshares Corporation,
San Rafael, California
Order Approving Acquisition
in Management Consulting
of Company
Services
Engaged
Independent Bankshares Corporation, San Rafael,
California, a bank holding company within the meaning of the Bank Holding Company Act ("Act"), has
applied for the Board's approval, pursuant to section
4(c)(8) of the Act (12 U . S . C . § 1843(c)(8)), and section
225.4(b)(2) of the Board's Regulation Y (12 C.F.R.
§ 225.4(b)(2)), to acquire Learnex Corporation, La
Jolla, California ("Corporation"), and thereby engage
in providing management consulting services to nonaffiliated depository institutions. 1 This activity, subject
to certain conditions, has been determined by the
Board to be closely related to banking and, therefore,
permissible for bank holding companies (12 C.F.R.
§ 225.4(a)(12)).
Notice of the application, affording interested persons an opportunity to submit comments and views on
the public interest factors, has been duly published (48
Federal Register 7009 (1983)). The time for filing
1. Applicant also intends to provide management consulting services through Corporation to itself and its subsidiary banks. Applicant
is not required to obtain the Board's prior approval to engage in this
activity pursuant to section 4(c)(1)(C) of the Act (12 U.S.C.
§ 1843(c)(1)(C)).
Legal Developments
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, the 20th largest banking organization in
California, controls six banking subsidiaries with aggregate deposits of $654 million, representing approximately 0.4 percent of total deposits in commercial
banks in the state. 2 In addition, Applicant engages,
through nonbanking subsidiaries, in trust company
and mortgage banking activities.
Corporation provides management consulting services to depository institutions, specializing in the
provision of personnel development and marketing
technique programs. Applicant proposes to market
Corporation's services throughout the United States.
Affiliation with Applicant will enable Corporation to
market its services more effectively. Accordingly, it is
the Board's view that approval of this application
would produce benefits to the public and would be in
the public interest. Moreover, there is no evidence in
the record to indicate that Applicant's engaging in this
activity would lead to any undue concentration of
resources, decreased or unfair competition, conflicts
of interests, unsound banking practices or other adverse effects.
Based upon the foregoing and other considerations
reflected in the record, the Board has determined that
the balance of the public interest factors the Board is
required to consider under section 4(c)(8) of the Act is
favorable. Accordingly, the application is approved.
This determination is subject to the conditions set
forth in section 225.4(c) of Regulation Y and to the
Board's authority to require such modification or
termination of 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 evasions 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 San Francisco pursuant to
delegated authority.
By order of the Board of Governors, effective
April 26, 1983.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Teeters, Rice, and Gramley.
WILLIAM W .
[SEAL]
Secretary
2. All banking data are as of September 30, 1982.
375
The Maybaco Company,
Baltimore, Maryland
Equitable Bancorporation,
Baltimore, Maryland
Order Approving Acquisition
Associates,
Inc.
of Shares of ABG
The Maybaco Company ("Maybaco") and Equitable
Bancorporation ("Equitable") both of Baltimore,
Maryland, and both bank holding companies within
the meaning of the Bank Holding Company Act
(12 U.S.C. § 1841 et seq.) have applied for the Board's
approval under section 4(c)(8) of the Act and section
225.4(b) of the Board's Regulation Y (12 C.F.R.
§ 225.4(b)), directly to acquire voting shares of ABG
Associates, Inc., Baltimore, Maryland ("ABG"), a
joint venture currently held in part by Equitable's
subsidiary, Equitable Bank, National Association,
Baltimore, Maryland ( " E B N A " ) . 1
ABG is a specialized mortgage banking firm engaged
principally in the arrangement, placement, and servicing of government-assisted mortgage loans. Most of
the transactions in which ABG plays a role involve the
financing of low- and moderate-income apartment and
nursing home projects. ABG also engages to a limited
extent in conventional mortgage loan servicing and in
the provision of financial advisory services to public
housing authorities and other units of state and local
governments with respect to the construction or rehabilitation of housing projects. Each of these activities
has been determined by the Board to be closely related
to banking (12 C.F.R. §§ 225.4(a)(1), (3), and (5)). ABG
has offices in Baltimore, Maryland; Richmond, Virginia; and Washington, D.C., and the geographic areas
served are Maryland, Pennsylvania, Delaware, the
District of Columbia, West Virginia, Virginia, and
North Carolina.
Notice of the application, affording opportunity for
interested persons to submit comments on the public
interest factors, has been duly Published (48 Federal
Register 3049 (1983)). The time for filing comments
has expired, and the Board has considered the application and all comments received in light of the public
interest factors set forth in section 4(c)(8) of the Act.
ABG was formed in 1980 as a de novo corporation
by its current shareholders, E B N A ; Baker, Watts &
Co. ("Baker, Watts"); and A T N & Company, Inc.
WILES,
of the Board
1. Maybaco is a party to this application only because it owns 33.6
percent of Equitable's voting shares. Maybaco is a limited partnership
formed by one of Equitable's shareholders solely to hold the Equitable
stock controlled by him. Maybaco engages in no other activities other
than the holding of Equitable's stock.
376
Federal Reserve Bulletin • May 1983
("ATN"). 2 EBNA currently owns 49 percent of
ABG's voting common stock and 65.3 percent of its
nonvoting preferred stock. Through this application,
Equitable proposes directly to acquire EBNA's interest in ABG through a transfer of the stock as a
dividend from E B N A to Equitable. 3 Baker, Watts
now owns 26 percent of ABG's common stock and
34.7 percent of its preferred stock, while ATN holds 25
percent of ABG's common stock.
ATN is owned by three officers of ABG and engages
in no activity apart from its ownership of ABG's
common stock. Consequently, ATN's role as a joint
venturer in this proposal would have no effect on
existing or potential competition in any relevant market. Baker, Watts is a member of the New York Stock
Exchange ("NYSE") and is engaged principally in the
activities of: 1) underwriting and dealing in securities;
2) securities brokerage, and; 3) rendering financial
planning and advisory services. The facts of record
indicate that Baker, Watts ranks as a medium-sized
firm among the mid-Atlantic NYSE-member investment banking firms. Equitable is the second largest
banking organization in Maryland, controlling approximately $1.8 billion in aggregate deposits, or 13.2
percent of commercial bank deposits in the state. 4
Through its nonbank subsidiaries, Equitable engages
in permissible credit-related insurance activities, investment advisory activities, and in the holding of
bank premises.
Neither Equitable nor Baker, Watts currently engages directly or indirectly in the specialized mortgage
banking activities and related advisory services that
ABG provides. Equitable engages in conventional
mortgage lending activities through EBNA, but the
Board regards any overlap with ABG's activities as
minimal. The record indicates that ABG's principal
activities involve the origination and servicing of an
entire package of government-assisted construction
and permanent financing for low- and moderate-income housing and nursing home projects. These activities frequently involve short-term construction lending by ABG as an incidental part of an overall
financing package. However, ABG generally sells
participations in such loans to other lenders and does
not attempt to build a substantial loan portfolio for
itself. Construction lending for EBNA, on the other
2. At the time of ABG's formation, EBNA was a state-chartered
institution, The Equitable Trust Company. It became a national bank
in July 1982.
3. The Comptroller of the Currency is requiring E B N A to divest its
ABG stock because ABG does not qualify as an "operating subsidiary" in compliance with Federal law and the Comptroller's regulations. 12 U.S.C. § 24 (Seventh), 12 C.F.R. § 7.7376.
4. All banking data are as of June 30, 1982.
hand, is an end in itself intended to build a profitable
loan portfolio. Consequently, it appears that Equitable
and ABG are not principally engaged in the same line
of commerce for purposes of competitive analysis. In
addition, since ABG's principal customers are developers of low- and moderate-income housing and nursing home projects, while E B N A makes construction
loans to a much broader group of individuals and
businesses, any competitive overlap between ABG
and EBNA is further mitigated by the fact that they
largely serve different markets. Accordingly, it is the
Board's judgment that consummation of the proposal
would not have any adverse effect on existing competition.
The Board has also considered the effects of consummation of this proposal on probable future competition in the relevant line of commerce, particularly in
light of the fact that this application involves the use of
a joint venture to engage in the relevant activities. In
this regard, although Equitable could presumably engage in these specialized mortgage banking activities
independently, the Board does not consider Equitable
to be a likely independent entrant into the market
because it does not possess the necessary expertise to
engage separately in these highly specialized activities, and the cost of doing so on a de novo basis would
likely be prohibitive. 5 The elimination of Equitable
as a probable future entrant into this line of commerce,
therefore, would have little effect on probable future
competition in the market. Accordingly, the Board
concludes that consummation of the proposed joint
venture would not significantly decrease competition
in any market.
Section 4(c)(8) of the BHC Act requires the Board to
consider in connection with every application whether
performance of a nonbanking activity by a particular
bank holding company "can reasonably be expected
to produce benefits to the public, such as greater
convenience, increased competition or gains in efficiency, that outweigh possible adverse effects, such as
undue concentration of resources, decreased or unfair
competition, conflicts of interest or unsound banking
practices."
It is the Board's view that approval of this application could reasonably be expected to produce substantial benefits to the public. Specifically, Equitable's
acquisition of ABG would permit the continuation of
public benefits which have resulted from ABG's operations since its inception in 1980. The record indicates
that the ownership interests of EBNA and Baker,
5 . S e e , Florida
Coast
Banks,
Inc.,
TIN 781 (1982); Svenska Handelsbanken,
LETIN 7 8 8 ( 1 9 8 2 ) .
6 8 F E D E R A L RESERVE B U L L E -
68 FEDERAL RESERVE BUL-
Legal Developments
Watts have enabled ABG to operate as a uniquely
effective participant in its field, producing gains in
efficiency and increased competition, and materially
assisting in the creation of new low- and moderateincome housing and nursing homes.
With regard to possible adverse effects, in prior
cases the Board has considered whether the involvement of a bank holding company in a joint venture with
a nonbanking firm may in itself constitute a generalized adverse effect, in the form of an undue concentration of economic resources or otherwise, that would
preclude approval of an application. 6 In a case such as
this one, where a bank holding company and a securities firm propose to engage in a joint venture, an
additional question is raised as to whether approval of
the proposal would violate the letter or the intent of
the Glass-Steagall Act. 7
The facts of record indicate that there is no "affiliation" between Equitable and Baker, Watts, within
the meaning of the Glass-Steagall Act. Accordingly,
the Board has determined that approval of this proposal would not result in a violation of any provision of
that Act. The Board has also determined that the
ownership interests of Equitable and Baker, Watts in
ABG would not create a level of involvement between
the bank holding company and the securities firm
sufficient to circumvent the intent of the Glass-Steagall
Act. In this regard, ABG would not engage in securities activities, and none of its officers or directors
would be a director, partner or employee of Baker,
Watts. Further, upon consummation of the proposal,
Baker, Watts has agreed to the redemption of all of the
nonvoting preferred stock of ABG it currently owns
and to the sale of enough of its voting common stock to
reduce its ownership interest in ABG from 26 percent
to 19.07 percent. 8 In addition, Baker, Watts would
place approximately 14.07 percent of its ABG common
stock into an independent voting trust, which would
deprive Baker, Watts of the power to vote those
shares. 9 Consequently, upon consummation of this
proposal, Baker, Watts would have voting rights over
only 4.99 percent of ABG's common stock. Applicants
have further agreed that, upon consummation of this
proposal, the two ABG directors formerly elected by
6 . S e e , Deutsche
Bank
(1981); Maryland National
AG,
6 7 FEDERAL RESERVE B U L L E T I N 4 4 9
Corporation,
65 FEDERAL RESERVE BUL-
377
Baker, Watts would instead be elected by the trustees
of the voting trust; no partner, officer or employee of
Baker, Watts would be eligible to serve as a director of
ABG at any time. Accordingly, it is the Board's view
that Applicants have taken sufficient measures to
ensure that the Glass-Steagall Act's prohibition
against affiliation between the banking and securities
industries would not be violated by approval of this
application. Further, there is no evidence in the record
to indicate that consummation of this proposal would
result in an undue concentration of resources, unfair
competition, conflicts of interests, unsound banking
practices, or other adverse effects on the public
interest.
Based on the foregoing and other facts of record, the
Board concludes that the balance of the public interest
factors it must consider under section 4(c)(8) favors
approval of this application. In addition, the financial
and managerial resources and future prospects of
Equitable and ABG are considered consistent with
approval, and the Board has determined that the
application should be and hereby is approved.
This determination is subject to the conditions set
forth in section 225.4(c) of Regulation Y and to the
Board's authority to require such modification or
termination of the activities of a bank holding company or its subsidiaries as the Board finds necessary to
assure compliance with the provisions and purposes of
the Act and the Board's regulations and orders issued
thereunder, or to prevent evasion thereof.
The transaction shall be made not later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Richmond, acting
pursuant to delegated authority.
By order of the Board of Governors, effective
April 6, 1983.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, and Teeters. Absent and not voting:
Chairman Volcker and Governors Rice and Gramley.
JAMES M C A F E E ,
[SEAL]
Associate
Secretary
of the Board
Old Colony Co-Operative Bank,
Providence, Rhode Island
LETIN 2 7 1 ( 1 9 7 9 ) .
7. See, 12 U.S.C. §§ 78, 221a(b), 377.
8. Specifically, Baker, Watts would sell 6.93 percent of its common
stock to ATN. ATN's share ownership would thereby increase to
31.93 percent.
9. The trust would have three trustees, none of whom could be an
officer, partner or employee of Equitable, ATN or Baker, Watts.
Baker, Watts would continue to receive dividends from the shares,
but could not exercise any voting rights over them.
Order Approving
Establishment
of De Novo
Branch
Old Colony Co-Operative Bank, Providence, Rhode
Island, a bank holding company within the meaning of
the Bank Holding Company Act, has applied for the
Board's approval under section 4(c)(8) of the Act
378
Federal Reserve Bulletin • May 1983
(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)), to
engage in the activities of a mutual building-loan
association at a de novo branch office in East Providence, Rhode Island. Applicant is a state-chartered
mutual building-loan association that engages primarily in accepting share deposits and making real estate
mortgage loans. Applicant's accounts are insured by
the Federal Savings and Loan Insurance Corporation
("FSLIC").
The Board has not added the operation of a Rhode
Island mutual building-loan association to the list of
activities specified in section 225.4(a) of Regulation Y
as generally permissible for bank holding companies.
In 1972, however, the Board determined that the
operation of such an institution is closely related to
banking in Rhode Island and approved Applicant's
proposal to become a bank holding company and to
continue to engage in the activities of a mutual building-loan association. The Board also approved Applicant's proposals to acquire the Mayflower Savings and
Loan Association, Providence, Rhode Island ("Mayflower"), a Rhode Island mutual building-loan association, in 1980, and to retain a de novo branch office in
1982.1
Notice of the application, affording opportunity for
interested persons to submit comments, has been duly
published (48 Federal Register 7009 (1983)). The time
for filing comments and views has expired and the
Board has considered the application and all comments received in light of the factors set forth in
section 4(c)(8) of the act.
Applicant (consolidated assets of $798.8 million), is
a bank holding company by virtue of its control of
Newport National Bank, Newport, Rhode Island (deposits of $59.6 million). 2 As of June 30, 1981, Applicant was the second largest thrift institution and the
fifth largest commercial banking organization in Rhode
Island. Applicant operates its commercial banking and
thrift activities in common offices at 21 locations in
Rhode Island, and seeks to operate the branch that is
the subject of this application in tandem with Newport
National.
While Applicant does not seek to engage in a new
activity under the Bank Holding Company Act, the
Board is required to assess the public interest factors
in each section 4(c)(8) application, including an application for a de novo branch of an approved subsidiary.
The Board has previously determined that the operation of a Rhode Island mutual building-loan association by a Rhode Island bank holding company is so
closely related to banking as to be a proper incident
thereto. In its 1972 approval of Applicant's application
to become a bank holding company and to continue to
engage in the activities of a mutual building-loan
association, the Board determined that, because of the
historical affiliation of mutual thrift associations and
commercial banks in Rhode Island, Applicant's operation of a thrift institution is so closely related to Rhode
Island banking as to be a proper incident thereto. 3 The
Board reaffirmed this determination in 1980 and 1982.4
Because no evidence has been presented to indicate
that banking conditions have substantially changed in
Rhode Island since the Board's last consideration of
this issue, the Board confirms its finding that the
operation of a mutual building-loan association is so
closely related to banking in Rhode Island as to be a
proper incident thereto.
Notwithstanding this general finding, the Board
must also consider the particular facts of this case to
determine whether the establishment of this office can
reasonably be expected to produce benefits to the
public that outweigh possible adverse effects. Establishment of this branch would have no adverse effect
on competition because it is a de novo office. The
Board views de novo entry as procompetitive and a
positive public benefit because such entry provides an
additional source of competition in a market.5 Consummation of the proposal will provide an additional
source of banking services in the East Providence
area.
In considering similar applications involving the
affiliation of commercial banks and thrift institutions in
New Hampshire, the Board has expressed the view
that serious adverse effects may result from tandem
operation of these two types of institutions, which
only compelling public benefits will outweigh under
section 4(c)(8) of the Act. 6 With regard to such affiliations in the State of Rhode Island, however, the
Board has said:
The Board recognizes that a different view of tandem operations in Rhode Island is possible because of
1 . Old
Colony
Co-Operative
Bank,
5 8 FEDERAL RESERVE B U L L E -
TIN 417 (1972); Old Colony Co-Operative Bank, 66 FEDERAL RESERVE
BULLETIN 665 (1980); Old Colony Co-Operative Bank, 68 FEDERAL
RESERVE BULLETIN 785 (1982). Under section 333 of the Garn-St
Germain Depository Institutions Act, Applicant is not a "bank"
within the meaning of section 2(c) of the Bank Holding Company Act
because its accounts are insured by the FSLIC.
2. All financial data are as of December 31, 1982, unless otherwise
indicated.
3. 5 8 F E D E R A L RESERVE B U L L E T I N 4 1 7 ( 1 9 7 2 ) .
4 . 6 6 F E D E R A L RESERVE B U L L E T I N 6 6 5 ( 1 9 8 0 ) ; 6 8 FEDERAL R E SERVE B U L L E T I N 7 8 5 ( 1 9 8 2 ) .
5. Virginia National Bancshares,
Inc., 66 FEDERAL RESERVE BUL-
LETIN 6 6 8 , 6 7 1 ( 1 9 8 0 ) .
6. First Financial
Group of New Hampshire,
RESERVE B U L L E T I N 5 9 4 ( 1 9 8 0 ) .
Inc., 66 FEDERAL
Legal Developments
historical and legal peculiarities affecting the operations and competitive position of the state's depository
institutions. Nearly all thrift institutions in Rhode
Island are associated with commercial banks in varying degrees, and over half of them conduct common
lobby operations. Consequently it is clear that the
expansion of tandem operations in the state will be less
unsettling structurally than it would be elsewhere. 7
Based on the evidence in the record, the Board
concludes that there are significant structural differences between the tandem operations of commercial
bank-thrift institutions in Rhode Island and New
Hampshire and that there is no basis to impose restrictions on such operations in Rhode Island. In New
Hampshire, the extent of tandem operations is limited.
In considering an application by a bank holding company to acquire a previously unaffiliated thrift in New
Hampshire in 1980, the Board expressed its concern
that approval would result in circumvention of the
interest rate differential between commercial banks
and thrifts in that state, and imposed restrictions on
tandem operations. 8 In Rhode Island, however, the
Board has reoognized a longstanding and widespread
integration of the operations of depository institutions. 9 Every thrift of any size in Rhode Island that
now owns a commercial bank operates its thrift and
bank offices in tandem. The unique historical and legal
development of commercial bank and thrift affiliation
in Rhode Island indicates that such affiliation results,
at least partly, from Rhode Island's efforts to afford
competitive equity among thrift institutions.
379
There is no evidence of any other potential adverse
effects that might be associated with this proposal.
Based upon the foregoing and other considerations
reflected in the record, the Board has determined that
the balance of public interest factors the Board is
required to consider under section 4(c)(8) is favorable.
Accordingly this application is approved. 10 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 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 that period is
extended for good cause by the Board or by the
Federal Reserve Bank of Boston acting pursuant to
authority hereby delegated.
By order of the Board of Governors, effective
April 28, 1983.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Rice, and Gramley. Absent and not
voting: Governor Teeters.
WILLIAM W .
[SEAL]
Secretary
WILES,
of the Board
Orders Under Sections 3 and 4 of Bank
Holding Company Act
Banc One Corporation,
Columbus, Ohio
7 . Old Colony
Co-operative
Bank,
6 6 FEDERAL RESERVE B U L L E T I N
665, 666 (1980).
8. First Federal Group of New Hampshire,
Inc., 66 FEDERAL
RESERVE BULLETIN 594, 596 (1980). See, also, Heritage Banks, Inc.,
6 6 FEDERAL RESERVE B U L L E T I N 9 1 7 , 9 1 8 ( 1 9 8 0 ) ; Heritage
Inc.,
Banks,
6 6 F E D E R A L RESERVE B U L L E T I N 5 9 0 ( 1 9 8 0 ) ( I n t h i s c a s e ,
the
Board did not apply its restriction against tandem operations because
it found mitigating factors which clearly indicated that the proposal
was not a device by the Applicant to evade the interest rate differential).
9 . I n Old
Colony
Cooperative
Bank,
6 6 FEDERAL RESERVE B U L L E -
TIN 665, 666, n.6. (1980), the Board stated:
The activities and powers of depository institutions in the state
are uniquely integrated, and have been for a long time. Each of
Rhode Island's seven mutual savings banks, having authority
under state law to own a commercial bank, had acquired a
commercial bank by 1967. Congress enacted section 2(a) (5) (F) of
the Act in order to exempt these combined savings-commercial
bank institutions from bank holding company status. In order
partially to redress the competitive imbalance resulting from the
superior competitive position of the seven savings-commercial
bank institutions, the Rhode Island legislature, in May 1970,
authorized state-chartered building-loan associations to establish
or acquire stock in a bank or trust company. In 1971, the state
authorized state-chartered credit unions with deposit shares over
$1 million to accept demand deposits.
Order Approving Merger of Bank Holding
Companies and Acquisition Of Companies
Engaged
in Leasing, Insurance, and Mortgage Banking
Activities
Banc One Corporation, Columbus, Ohio ("Banc
One"), a bank holding company within the meaning of
the Bank Holding Company Act of 1956, (12 U.S.C.
§ 1841 et seq.), has applied for the Board's approval
under section 3(a)(5) of the Act (12 U.S.C.
§ 1842(a)(5)) to merge with Winters National Corporation, Dayton, Ohio ("Winters"), also a bank holding
company. As a result of the merger, Banc One would
10. In connection with this application, the Board hereby delegates
authority to the Federal Reserve Bank of Boston to approve applications by Applicant to open additional de novo offices, pursuant to
section 225.4(b)(1) of Regulation Y (12 C.F.R. § 225.4(b)(1)).
380
Federal Reserve Bulletin • May 1983
acquire Winters' four subsidiary banks, all in Ohio:
Winters National Bank & Trust Company, Dayton;
Euclid National Bank, Cleveland; First National Bank
of Circleville, Circleville; and Winters National Bank
of Cincinnati, Cincinnati.
Banc One also has applied for the Board's approval
under section 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)) to acquire the following nonbanking subsidiaries of Winters, all in Dayton, Ohio: Winters
National Mortgage Corporation, which engages in
mortgage banking activities; Winters National Leasing
Corporation, which engages in leasing personal property and equipment; and Winters National Life Insurance Company, which provides credit life and credit
accident and health insurance in connection with installment loans made by Winters' banking subsidiaries. These activities have been determined by the
Board to be closely related to banking (12 C.F.R.
§§ 225.4(a)(1), (3), (6), and (9)).
Notice of the applications, affording opportunity for
interested persons to submit comments, has been
given in accordance with sections 3 and 4 of the Act
(48 Federal Register 6592 (1983)). The time for filing
comments has expired, and the Board has considered
the applications and all comments received in light of
the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1842(c)) and the considerations specified
in section 4(c)(8) of the Act. 1
Banc One, the third largest commercial banking
organization in Ohio, controls 24 banks with aggregate
domestic deposits of $4.0 billion, representing 8.9
percent of the total deposits in commercial banks in
Ohio. Winters, the tenth largest commercial banking
organization in Ohio, controls four subsidiary banks
with aggregate deposits of $1.1 billion, representing
2.5 percent of the total deposits in commercial banks
in the state. 2 Upon consummation of this transaction,
Banc One's share of the total deposits in commercial
banks would be 11.4 percent and Banc One would
become the largest commercial banking organization
in Ohio.
The Board has carefully considered the effects of the
proposal on statewide banking structure and upon
competition in the relevant markets. The proposal
involves a combination of sizeable commercial banking organizations that are among the leading banking
1. The Board received comments during the comment period from
Mr. William Kuntz regarding the operation of the trust department of
Winters National Bank & Trust Company. Mr. Kuntz's comments do
not reflect adversely on the proposed acquisition of Winters by Banc
One and have been referred to the Comptroller of the Currency.
2. Statewide banking data are as of June 30, 1982, and reflect bank
holding company acquisitions as of March 1, 1983.
3. Ten banking organizations with assets of over $1 billion and four
organizations with assets over $500 million would remain in Ohio after
consummation of the proposal.
organizations in the state. In terms of the concentration of deposits in commercial banks, however, Ohio
is one of the least concentrated states in the United
States and would remain so upon consummation of the
proposal. In addition, a large number of banking
organizations of substantial size would continue to
operate in the state following consummation of this
proposal. 3 On the basis of these considerations, the
Board concludes that the proposed merger would have
no substantial adverse effects on the concentration of
banking resources in Ohio.
Banc One and Winters compete directly with each
other in five banking markets in Ohio: Dayton, Cleveland, Cincinnati, Columbus, and Middletown. The
Cincinnati banking market is unconcentrated and contain numerous competitors, and Winters controls less
than 1 percent of the deposits of commercial banks in
these markets. The Middletown banking market is a
rural market and Winters is the smallest commercial
banking organization in the market with less than 1
percent of the market's deposits. The Columbus banking market is highly concentrated, with the four largest
commercial banking organizations controlling 85.9
percent of the market. Applicant, through its lead
bank, is the market's third largest commercial banking
organization and controls 19.6 percent of the market.
Winters' affiliate in the market controls less than one
percent of the market's deposits. After consummation,
Banc One would remain the third largest commercial
banking organization in the market. In addition, 19
commercial banks would continue to operate in the
Columbus market after consummation. Accordingly,
consummation of the proposal would have no significant adverse effect on existing competition in those
markets.
Winters is the largest commercial banking organization in the Dayton banking market4 and controls 33.6
percent of the deposits of commercial banks there. 5
Banc One operates the tenth largest bank in the market
and controls 1.7 percent of the deposits of commercial
banks in the market. The four largest banks in the
Dayton market control 75.2 percent of the deposits in
commercial banks in the market and consummation of
the proposal would ordinarily raise concern about the
elimination of existing competition in this market.
However, Banc One has committed to divest its
existing bank subsidiary in Dayton in order to eliminate any anticompetitive effect that might otherwise
resort from the merger. The proposed divestiture
4. The Dayton banking market is approximated by Montgomery,
Greene and Miami Counties; Bethel and Mad River Townships in
Clark County; and Clear Creek, Massie, and Wayne Townships in
Warren County, all in Ohio.
5. Banking data are as of June 30, 1981.
Legal Developments
conforms with the Board's policy requiring that such
divestitures take place prior to or concurrent with
consummation of the proposed acquisition. 6 The
Board concludes that, in the circumstances of this
case, the adverse effects on existing competition in the
Dayton banking market would be mitigated by Banc
One's proposed actions to divest its banking subsidiary in the market.
In light of the proposed divestiture of Banc One's
subsidiary in Dayton, the Board has considered the
effect of consummation of this proposal upon probable
future competition in the Dayton banking market. In
this regard, the record indicates that the Dayton
market has a three-firm concentration of 69.9 percent
and thus the market is considered unconcentrated
under the Board's guidelines. Based upon this fact and
the structure of the market, the Board has determined
that consummation of this proposal would not result in
any significant adverse effects on probable future
competition in the Dayton banking market.
The Cleveland market7 is moderately concentrated,
with a four-firm concentration ratio of 72.7 percent.
Banc One operates four banks in the market and
controls $434 million in commercial bank deposits
representing 3.9 percent of market deposits. Winters is
the eighth largest commercial banking organization in
the market, and controls $253.8 million in commercial
bank deposits representing 2.3 percent of the market's
deposits. Consummation of this proposal would increase Banc One's market share to 6.2 percent. However, Banc One would remain the sixth largest commercial banking organization in the market and 22
commercial banking organizations would remain in the
market after consummation of the proposal. Thus, the
Board concludes that consummation of this proposal
would not have an adverse effect on existing competition in the Cleveland market.
The Board has considered the effects of this proposal on probable future competition and also examined
the proposal in light of its proposed guidelines for
assessing the competitive effects of market extension
mergers and acquisitions. 8 In evaluating the effects of
a proposed merger or consolidation upon probable
future competition, the Board considers market con-
6 . S e e , Barnett
Banks
of Florida,
6 8 FEDERAL RESERVE B U L L E T I N
180 (1982).
7. The Cleveland market is approximated by Cuyahoga, Lake,
Lorain, and Geauga Counties; northern Medina County; the northwest portion of Portage County and the northern township in Summit
County, all in Ohio.
8. "Policy Statement of the Board of Governors of the Federal
Reserve System for Assessing Competitive Factors Under the Bank
Merger Act and the Bank Holding Company Act," 47 Federal
Register 9017 (March 3, 1982). Although the proposed policy statement has not been approved by the Board, the Board is using the
policy guidelines as part of its analysis of the effect of a proposal on
probable future competition.
381
centration, the number of probable future entrants into
the market, the size of the bank to be acquired, and the
attractiveness of the market for entry on a de novo or
foothold basis absent approval of the acquisition.
After consideration of these factors in the context of
the specific facts of this case, the Board concludes that
consummation of this proposal would not have any
significant adverse effects on probable future competition in any relevant market.
Winters operates in the Darke County and Preble
County banking markets, two markets in which Banc
One does not operate. Because of its size and substantial managerial resources, Banc One appears to be a
probable future entrant into these markets. The Preble
banking market is concentrated, with a three-firm
concentration ratio of 76 percent. There are, however,
a large number of probable future entrants into the
Preble County and Darke County markets. In addition, Winters' subsidiaries control 2 percent and less
than 1 percent of the Preble and Darke banking
markets, respectively. Accordingly, the Board concludes that the proposal would not have substantial
adverse effects on probable future competition in the
Preble County or Darke County banking markets.
Banc One operates in thirty markets in which Winters does not operate. 9 It appears that Winters has the
financial and managerial resources to enter these markets. Seventeen of these markets are small, rural
markets with less than $250 million in commercial
bank deposits and, thus, are excluded from analysis
under the Board's guidelines because the possibilities
for alternative procompetitive entry are limited. Of the
remaining thirteen markets, five of them have threefirm concentration ratios of less than 75 percent.
Moreover, each of the thirteen markets has numerous
other probable future entrants. Accordingly, the
Board concludes that consummation of the proposed
merger would not have such adverse effects on probable future competition in these markets as to warrant
denial of the proposal.
The financial and managerial resources and future
prospects of Banc One, Winters and their respective
subsidiaries are considered satisfactory and consistent
with approval. Although there is no evidence in the
record indicating that the banking needs of the communities to be served are not being met, consummation of the merger would result in expanded services
for Winters' customers, such as access to a statewide
system of automated teller machines, more flexible
9. These markets are the Akron, Ashland, Ashtabula, Athens,
Barnesville, Brown, Cadiz, Cambridge, Coshocton, Dover, Freeport,
Harden, Lima, Mansfield, Marion, Meigs, Morgan, Mount Gilead,
New Lexington, Oxford, Salem, Sandusky, Scioto, Shelby, Steubenville, Wapakoneta, Wheeling, Windham, Wooster, and Youngstown
banking markets.
382
Federal Reserve Bulletin • May 1983
banking office hours, and a wider range of international banking services. In addition, Banc One has committed to inject additional capital into Winters' subsidiary bank in Cleveland within six months of the
merger. Thus, considerations relating to the convenience and needs of the community to be served are
consistent with approval.
Banc One has also applied, pursuant to 4(c)(8) of the
Act, to acquire Winters' three nonbanking subsidiaries, and the Board has weighed the possible adverse
effects and reasonably expected public benefits associated with the acquisition of each subsidiary. Winters
National Life Insurance Company reinsures credit life
and credit accident and health insurance for loan
customers of Winters' banking subsidiaries. This insurance is sold only in connection with loans made by
Winters' respective subsidiaries and thus consummation of the proposal would not result in any significant
adverse effects on competition.
Banc One Mortgage Company and Winters National
Mortgage Corporation both engage in mortgage banking. Banc One Mortgage Company functions solely as
the servicing agent for mortgages originated by Banc
One's subsidiary banks. It originates no mortgage
loans, nor does it extend any type of credit on its own.
Winters National Mortgage Corporation engages in
mortgage servicing activities but, unlike Banc One
Mortgage, it also originates residential mortgages and
construction loans, primarily in the Dayton-Springfield vicinity. Because Banc One Mortgage conducts
no mortgage origination activities, approval of the
proposed transaction would not eliminate any direct
competition between these subsidiaries in the local
markets for residential mortgage originations or in the
national market for construction loans. Both affiliates
do perform mortgage servicing activities. Neither
company, however, holds any appreciable share of the
national market for mortgage servicing, and there are
numerous providers of this service. Accordingly, consummation would have no measurable effect on competition in this line of business.
Finally, Banc One and Winters operate subsidiaries
that engage in the leasing of personal property. The
record indicates, however, that the companies serve
different segments of the market. Winters National
Leasing Corporation has offices in Dayton and Cleveland and originates capital equipment leases for its
own customers and those of other Winters' affiliates.
Banc One Corporation does not originate leases for its
own portfolio, but provides personal property leasing
for affiliated banks. In light of this market segmentation and the large number of suppliers of leasing
services, consummation of this proposal would not
result in decreased competition in the leasing industry.
In addition, there is no evidence in the record to
indicate that approval of this proposal would result in
undue concentration of resources, decreased or unfair
competition, conflicts of interests, unsound banking
practices or other adverse effects on the public interest
in any market. Accordingly, the Board has determined
that the balance of the public interest factors it must
consider under section 4 of the Act is consistent with
approval of the application.
Based on the foregoing and other facts of record, the
Board has determined that the applications under
sections 3 and 4 of the Act should be and are hereby
approved. The merger shall not be made before the
thirtieth calendar day following the effective date of
this Order, and neither the merger nor the acquisition
of the nonbanking subsidiaries shall be made later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Cleveland,
pursuant to delegated authority. The determination as
to Banc One's acquisition of the nonbank subsidiaries
is subject to the conditions set forth in section 225.4(c)
of Regulation Y (12 C.F.R. § 225.4(c)) and to the
Board's authority to require such modification or
termination of the activities of a holding company or
any of its subsidiaries as the Board finds necessary to
assure compliance with the provisions and purposes of
the Act and the Board's regulations and orders issued
thereunder, or to prevent evasion thereof.
By order of the Board of Governors, effective
April 26, 1983.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Rice, and Gramley. Voting against
this action: Governor Teeters. Governor Wallich abstained
from consideration of the application to acquire Winters
National Life Insurance Company.
WILLIAM W .
Dissenting
WILES,
Secretary of the Board
[SEAL]
Statement
of Governor
Teeters
I dissent from the Board's action approving this application. I believe that the merger of these two bank
holding companies will eliminate a significant amount
of existing competition in the Columbus and Middletown banking markets and will have a significant
adverse effect on probable future competition in the
Dayton, Akron, and Oxford banking markets. Moreover, Winters and Banc One each are strong competitors in Ohio and, without any corresponding public
benefits, one will be eliminated by consummation of
this proposal.
Banc One and Winters currently compete directly in
the Columbus banking market. Banc One is the third
Legal Developments
largest commercial banking organization in the Columbus market, controlling 19.6 percent of market deposits. Winters controls approximately 1 percent of the
market's deposits. The Columbus banking market is
highly concentrated, with the four largest firms in the
market controlling 85.9 percent of the market's deposits. In light of the substantial market share controlled
by Banc One and the highly concentrated nature of the
market, I believe that consummation of this proposal
will eliminate significant existing competition in the
Columbus banking market.
Banc One and Winters also directly compete in the
Middletown banking market, which contains only four
banks. Banc One is second largest commercial bank in
the market and controls 35.5 percent of market deposits. Winters entered the market in 1981, by establishing
a branch bank that now controls approximately 1
percent of the market's deposits. I believe that the
elimination of competition between Banc One and
Winters in the Middletown market, particularly in light
of the limited number of banking alternatives remaining in that market, will have significant anticompetitive results.
I further believe that consummation of this proposal
will result in the elimination of significant probable
future competition in the Dayton, Akron, and Oxford
banking markets. In the Dayton market, for example,
Banc One plans to divest its existing subsidiary and to
acquire Winters. Winters is the largest banking organization in the Dayton market with 33.6 percent of the
deposits of commercial banks in the market. The
market's average growth rate of deposits for the past
two years has been greater than the average national
growth rate for the same period and, because Banc
One currently competes in Dayton, the market obviously is attractive for entry by Banc One. There are
only five probable future entrants into the market with
total assets over $1 billion. Finally, as the four largest
firms in the market will control 76.9 percent of the
market after the consummation of the proposed divestiture, the market may be characterized as concentrated. Nonetheless, the Board would permit Banc One to
increase its market share by acquiring the largest
banking organization in the market, even though less
anticompetitive means certainly exist for Banc One to
accomplish its objectives. Accordingly, I believe that
consummation of the proposal will result in the elimination of significant probable future competition in the
Dayton market.
In addition, I am concerned about the elimination of
probable future competition in the Akron and Oxford
banking markets. These are markets in which Banc
One, but not Winters, competes. Winters, however,
has been an aggressive competitor in entering new
markets and should be considered a likely probable
383
future entrant into these markets. In this regard, the
evidence indicates that the Akron banking market is
attractive for entry because the market's deposits for
the past two years have grown faster than the state and
national averages. In addition, there are only three
probable future entrants into Akron and the market is
moderately concentrated with a three-firm ratio of 65.6
percent. Thus, elimination of Winters as a probable
future entrant, in my opinion, will have an adverse
effect on probable future competition in the Akron
market.
The Oxford market also is very attractive for entry
by Winters. It is strategically located proximate to
other markets in which Winters currently operates and
has evidenced an average growth rate of deposits for
the past two years that has been far above the national
and state averages. The market is highly concentrated,
with the three largest firms controlling 89.9 percent of
the market's deposits. Also, Banc One is the largest
bank in the market. In my opinion, the elimination of
Winters as an entrant will have an adverse effect on
probable future competition in the Akron and Oxford
banking markets.
In summary, I believe that the Board's action approving this application represents another situation in
which the Board's proposed guidelines relating to
probable future competition permit combinations of
bank holding companies that have substantially anticompetitive consequences. I continue to believe the
Board should develop and apply standards that more
realistically reflect the adverse effects of the elimination of probable future competition.
April 26, 1983
InterFirst Corporation,
Dallas, Texas
Order Approving the Merger of Bank Holding
Companies and the Acquisition of Companies
Engaged in Insurance and Data Processing
Activities
InterFirst Corporation, Dallas, Texas, a bank holding
company within the meaning of the Bank Holding
Company Act ("Act"), has applied for the Board's
approval under section 3(a)(5) of the Act (12 U.S.C.
§ 1842) to acquire the successor by merger to First
United Bancorporation, Inc. ("First United"), Fort
Worth, Texas. As a result of the acquisition, Applicant
would acquire indirectly First United's 15 subsidiary
banks.
Applicant has also applied for the Board's approval
under section 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)) and section 225.4(b)(2) of the Board's
384
Federal Reserve Bulletin • May 1983
Regulation Y (12 C.F.R. § 225.4(b)(2)), to acquire
Texas Credit Life Insurance Company, Fort Worth,
Texas, a company that engages in underwriting of life,
accident, and health insurance policies directly related
to extensions of credit by subsidiaries of First United,
and First United Services, Inc., Fort Worth, Texas, a
company that engages in data processing activities.
These activities have been determined by the Board to
be closely related to banking and permissible for bank
holding companies (12 C.F.R. § 225.4(a)(8) and (a)(10))
and this determination has not been affected by the
recent amendments to section 4(c)(8) of the Act limiting the permissible insurance activities of bank holding
companies. 1
Notice of the applications, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with sections 3 and 4 of the
Act (47 Federal Register 55734 (1982)). 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)) and the considerations
specified in section 4(c)(8) of the Act.
Applicant is the largest banking organization in
Texas with 52 subsidiary banks that control aggregate
deposits of $14.4 billion, representing 11.56 percent of
the total deposits in commercial banks in the state. 2
First United is the tenth largest banking organization
in the state, with 15 banking subsidiaries that control
aggregate deposits of $1.9 billion, representing 1.52
percent of the total deposits in commercial banks in
the state. Upon consummation of the proposed acquisition and all planned divestitures, Applicant's share
of the total deposits in commercial banks in the state
would increase to 12.7 percent. Although the Board is
concerned about the effect of this merger of the largest
and tenth largest banking organizations in Texas on
the concentration of banking resources within the
state, certain conditions that would exist after the
proposed acquisition mitigate that concern. A number
of other large multibank holding companies, which are
active competitors throughout the state, would remain
upon consummation of this proposal, and the share of
commercial bank deposits held by the four largest
banking organizations in Texas would increase to only
40.3 percent after consummation of the proposed
merger. Thus, Texas would remain one of the least
concentrated states in the United States upon consummation of the proposal. Accordingly, it is the Board's
1. See Garn-St Germain Depository Institutions Act of 1982, Pub.
L. No. 97-320, § 601, 96 Stat. 1469, 1536-38 (1982).
2. Unless otherwise indicated, deposit data are as of June 30, 1982,
and reflect bank holding company formations and acquisitions approved as of December 31, 1982.
view that consummation of this acquisition would not
have any significantly adverse effects on the concentration of commercial banking resources in Texas.
In order to assess the competitive effects of a merger
under section 3 of the Act, the Board must first
determine the appropriate relevant geographic market.
The Board has previously indicated that the relevant
geographic market within which to evaluate the effects
of a transaction must reflect commercial and banking
realities and should consist of the localized area where
the banks involved offer their services and where local
customers can practicably turn for alternatives. 3 In
view of certain demographic and other economic developments in the Dallas-Fort Worth area of Texas,
the Board has considered whether the two cities and
their respective adjoining areas have become one
relevant geographic market and, thus, whether consummation of the proposal would substantially lessen
competition between the subsidiary banks of Applicant and First United in this market.
Dallas and Fort Worth are 30 miles apart and are
separated by a number of smaller communities (the
"mid-cities"). In previous cases, the Board considered Dallas and Fort Worth as separate banking markets. The record shows that recently, there has been
substantial economic and demographic development
in the "mid-cities" region. There has been considerable growth in the populations of the communities
between the two cities and considerable commercial
development in this area, including construction of the
airport that is located between the two cities. This
evidence indicates that, through economic and demographic evolution, Dallas and Fort Worth might be in
the process of merging into a single metropolitan
banking market and that competitive influences in one
city are transmitted to the other city.
Although the record contains some evidence demonstrating that these two markets might be merging
into a single banking market, the record indicates that
there is little deposit overlap between banks headquartered in Dallas and banks headquartered in Fort Worth
and little cross-area advertising of commercial banking
services. In addition, the available evidence does not
indicate that substantial commuting occurs between
the cities of Dallas and Fort Worth. Thus, it does not
appear at this time that banks in one city provide a
commercial banking alternative to banking customers
in the other city. The Board therefore concludes that
the relevant geographic markets within which to evaluate the competitive effects of this proposal are the
3.
Wyoming
Bancorporation,
3 1 4 ( 1 9 8 2 ) ; St. Joseph
673, 674 (1982).
Valley
6 8 F E D E R A L RESERVE B U L L E T I N 3 1 3 ,
Bank,
6 8 F E D E R A L RESERVE B U L L E T I N
Legal Developments
Dallas 4 and Fort Worth5 banking markets as previously defined by the Board.
Subsidiary banks of Applicant compete directly with
subsidiary banks of First United in the Dallas, Odessa,
and Killeen-Temple banking markets. On September 30,
1982, Applicant sold its only bank in the Fort Worth
market—InterFirst Bank Cleburne, N.A., Cleburne,
Texas. 6 As a result of this divestiture to private
investors, consummation of this proposal would not
result in elimination of existing competition between
Applicant and First United in the Fort Worth market.
Applicant's lead bank, InterFirst Bank of Dallas
(total deposits of $6.0 billion), is the largest banking
organization in the Dallas banking market and holds
29.9 percent of the total deposits in commercial banks
in the market. First United is the sixteenth largest
banking organization in the Dallas market, with four
subsidiary banks located in suburban areas of the
market that hold $99.2 million in deposits, representing 0.4 percent of the total deposits in commercial
banks in the market. The Dallas banking market has a
four-firm concentration ratio of 74.1 percent and an
Herfindahl-Hirschman Index ("HHI") of 1874.7 While
consummation of the acquisition would eliminate
some existing competition in the Dallas banking market, the competitive effect of this transaction in the
Dallas market would not be so adverse as to warrant
denial in view of the small market share and absolute
size of First United in the Dallas banking market and
the number of banking alternatives remaining in the
market.
Applicant is the largest banking organization in the
Odessa banking market8 with a single banking subsidiary that controls total deposits of $197.1 million,
representing 25.2 percent of total deposits in commer-
4. The Dallas banking market is approximated by Dallas County,
the southeast quadrant of Denton County (including Denton and
Lewisville), the southwest quadrant of Collin County (including
McKinney and Piano), the northern half of Rockwall County, the
communities of Forney and Terrell in Kaufman County, Midlothian,
Waxahatchie, and Ferris in Ellis County, and Grapevine and Arlington in Tarrant County.
5. The Fort Worth, banking market is approximated by Tarrant
County excluding Grapevine and Arlington, the community of Cleburne in Johnson County, the eastern half of Parker County (including
Weatherford and Springtown), the communities of Boyd and Rhome
in Wise County, and the community of Roanoke in Denton County.
6. Deposit data for InterFirst's Fort Worth bank have been excluded from the data appearing in this order.
7. Under the Department of Justice's merger guidelines, in a
market where the post-merger HHI is 1800 or more, the Department is
unlikely to challenge a merger that produces an increase in the HHI of
less than 50 points. In this case, the increase in the HHI would be only
21 points, from 1874 to 1895, and therefore the merger is not likely to
be challenged under the guidelines.
8. The Odessa market is approximated by the Odessa SMSA.
Deposit data are as of December 31, 1981, reflecting bank holding
company formations and acquisitions approved as of November 30,
1982.
385
cial banks in the market. First United's subsidiary in
the market, State National Bank of Odessa, is the
market's second largest banking organization with
$155.3 million in deposits, representing 19.9 percent of
the total deposits in commercial banks in the market.
The Odessa banking market contains six banks and the
four-firm concentration ratio in this market is 80.6
percent. A combination of Applicant and First United
in the market would result in a single banking organization controlling 45.1 percent of the total deposits in
commercial banks in the market and an increase in the
market's four-firm concentration ratio from 80.6 percent to 93.3 percent. In the Board's view, the effect of
this transaction, absent any planned divestiture, may
be substantially to lessen competition in the Odessa
market. However, First United has committed to
divest all of its interest in State National Bank of
Odessa to Southwest Bancshares, Inc., Houston, Texas, on or before the date of consummation of the
proposed merger. 9 The Board concludes that the sale
of State National Bank, if consummated on or before
the consummation of Applicant's acquisition of First
United, will eliminate any substantial adverse effects
on existing competition that might otherwise be produced by this merger in the Odessa market.
Applicant is the largest banking organization in the
Killeen-Temple banking market, with two subsidiary
banks holding total deposits of $117.4 million, representing 18.6 percent of the total deposits in commercial banks in the market. 10 First United, which established its subsidiary in this market de novo in 1974, is
the eleventh largest organization in the market with
total deposits of $24.4 million, representing 3.9 percent
of the total deposits in commercial banks in the
market. In order to eliminate any anticompetitive
effect that might result in this market from Applicant's
acquisition of First United, First United has committed to divest its subsidiary in this market, Citizens
National Bank of Temple, to Texas American Bancshares, Fort Worth, Texas, on or before the date of
consummation of the proposed merger. Based upon
First United's commitment to divest its bank in the
Killeen-Temple banking market, the Board concludes
that the proposed merger would not have any significant effect on existing competition in this market.
9. The Board's policy with regard to competitive divestitures, as
stated in its Order approving the acquisition by Barnett Banks of
Florida, Inc., Jacksonville, Florida, of First Marine Banks, Inc.,
Riviera Beach, Florida, 68 FEDERAL RESERVE BULLETIN 190 (1982),
requires that divestitures intended to cure the anticompetitive effects
resulting from a merger or acquisition occur on or before the date of
consummation of the merger to avoid the existence of anticompetitive
elFects. See also InterFirst Corporation, 68 FEDERAL RESERVE BULLETIN 2 4 3 ( 1 9 8 2 ) .
10. The Killeen-Temple market is approximated by the KilleenTemple SMSA.
386
Federal Reserve Bulletin • May 1983
There are 25 markets in Texas in which either
Applicant or First United, but not both, competes. 11
The Board has considered the effects of the proposal
on probable future competition in these geographic
markets and has also examined the proposal in light of
its proposed guidelines for assessing the competitive
effects of market extension mergers and acquisitions. 12
In evaluating the effects of a proposed merger or
acquisition upon probable future competition, the
Board considers market concentration, the number of
probable future entrants into the market, the attractiveness of the market for de novo and/or foothold
entry, and the size and market position of the firm to
be acquired. The Board has also considered the likelihood that Applicant or First United would enter each
other's markets de novo or on a foothold basis absent
approval of the acquisition.
In view of the proximity of the Dallas and Fort
Worth markets and the fact that Applicant had established a banking subsidiary in the Fort Worth banking
market which it sold in anticipation of this transaction,
the Board believes that Applicant is a likely probable
future entrant into the Fort Worth market absent
approval of this proposal. However, the Fort Worth
banking market is not highly concentrated as indicated
by a three-firm concentration ratio of 63.6 percent, and
there is no indication that the market is not competitive. Thus, the Board does not view the elimination of
Applicant as a probable future entrant into the market
as having a substantial adverse effect on probable
future competition in the market.
There are two other markets in which First United,
but not Applicant, competes. These are rural markets,
not located in SMSA's and each market has total
deposits of less than $250 million. In addition, there
are numerous other probable future entrants into each
of the markets. Accordingly, the Board finds that
consummation of the proposal will not have a substantially adverse effect on probable future competition in
these markets.
As noted, there are two markets, Odessa and Killeen-Temple, in which First United has a banking
11. The 22 markets in which only Applicant operates are: Abilene,
Austin, Beaumont, Bosque County, Brownsville-Harlingen, El Paso,
Ennis County, Galveston, Henderson County, Hill County, Houston,
Hunt County, Kaufman County, Lamar County, Navarro County,
San Antonio, Sherman-Denison, Titus County, Tyler, Victoria County, Waco, and Wichita Falls. The three markets in which only First
United competes are Fort Worth, Brown County, and Erath County.
12. "Proposed Policy Statement of the Board of Governors of the
Federal Reserve System for Assessing Competitive Factors Under the
Bank Merger Act and the Bank Holding Company Act," 47 Federal
Register 9017 (March 3, 1982). While the proposed policy statement
has not been approved by the Board, the Board is using the policy
guidelines in its analysis of the effects of a proposal on probable future
competition.
subsidiary that will be divested upon consummation of
this proposal. While these divestitures eliminate any
adverse effect the proposal may have upon existing
competition, the Board must examine the proposal for
any adverse effect upon probable future competition in
these markets. Because of its size and financial resources, and the fact that it had already entered these
markets, First United is viewed as a likely probable
future entrant into these markets. However, the Killeen-Temple market is unconcentrated and there are
numerous probable future entrants into the Odessa
market. Therefore, the Board does not view the elimination of First United as a probable future entrant into
these markets as substantially anticompetitive.
Of the remaining 20 markets in which only InterFirst
now competes, ten are rural markets not located in
SMSA's into which there are numerous probable
future entrants besides First United. Moreover, eight
of these ten markets have total deposits in commercial
banks of less than $250 million. Of the remaining 10
markets, five are not highly concentrated, one has
numerous other probable future entrants besides First
United, and in four, InterFirst's subsidiary bank is not
among the three largest competitors in the market or
does not control a market share of 10 percent or more.
Based on the foregoing and other facts of record,
including the specific economic, demographic, and
structural characteristics of all of the relevant geographic markets, the Board concludes that consummation of the proposal would not have any significant
adverse effect on probable future competition in any
relevant market. Thus, competitive considerations are
consistent with approval of the application.
The financial and managerial resources of Applicant
and its subsidiaries are regarded as generally satisfactory, and their future prospects appear favorable.
Since this transaction will be accomplished through an
exchange of shares, it will not have any adverse effect
on Applicant's financial resources. Financial and managerial considerations are, therefore, consistent with
approval of the application. Considerations relating to
the convenience and needs of the communities to be
served are also consistent with approval of the application.
Applicant has also applied, pursuant to section
4(c)(8) of the Act, to acquire Texas Credit Life Insurance Company ("Texas Credit"), Fort Worth, Texas,
a wholly-owned subsidiary of First United, through
which Applicant proposes to engage in underwriting,
directly or as reinsurer, of credit life and credit accident and health insurance directly related to extensions of credit by the banking subsidiaries acquired by
Applicant from First United. Credit life and credit
accident and health insurance policies are generally
made available by banks and other lenders and are
designed to assure repayment of a loan in the event of
Legal Developments
death or disability of the borrower. In connection with
its addition of the underwriting of such insurance to
the list of permissible activities for bank holding
companies, the Board stated:
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 applications in which an
applicant demonstrates that approval will benefit the
consumer or result in other public benefits. Normally
such a showing would be made by a projected reduction in rates or increase in policy benefits due to
bank holding company performance of this service.
12 C.F.R. § 225.4(a)(10), n. 7.
At the time First United applied to engage in these
activities through Texas Credit, it committed to maintain reduced rates following approval of the application, a result the Board regards as being in the public
interest. That commitment is reflected in the order
approving these activities issued by the Federal Reserve Bank of Dallas on December 5, 1977. As a
condition of approval of this application, Applicant
will be expected to honor First United's commitment
with respect to reduced rates.
It does not appear that Applicant's acquisition of
Texas Credit would have any significant adverse effects upon existing or potential competition. Although
Applicant engages, through several subsidiaries, in
these same activities, with respect to its banking
subsidiaries, no adverse competitive effect would result from this acquisition because the services of
Texas Credit would be limited to insurance with
respect to extensions of credit made by the banking
subsidiaries of First United acquired through this
transaction.
Furthermore, there is no evidence in the record to
indicate that approval of this proposal would result in
undue concentration of resources, decreased or unfair
competition, conflicts of interests, unsound banking
practices or other adverse effects on the public
interest.
Applicant has also applied, pursuant to section
4(c)(8) of the Act to acquire First United Services,
Inc., Fort Worth, Texas, a company that would provide data-processing services to bank subsidiaries of
First United. It does not appear that Applicant's
acquisition of this subsidiary would have any significant adverse effects upon existing or potential competition. Furthermore, there is no evidence in the record
to indicate that approval of this proposal would result
in undue concentration of resources, decreased or
unfair competition, conflicts of interests, unsound
banking practices or other adverse effects on the
public interest. Accordingly, the Board has determined that the balance of the public interest factors it
387
must consider under section 4(c)(8) of the Act is
favorable and consistent with approval of the applications to acquire Texas Credit and First United Services, Inc.
Based on the foregoing and the facts of record, the
Board has determined that the applications under
section 3(a)(5) and 4(c)(8) of the Act should be and
hereby are approved subject to the condition that
complete divestiture of Citizens National Bank of
Temple and State National Bank of Odessa take place
on or before the date of consummation of the merger
and that the merger shall not be made before the
thirtieth calendar day following the effective date of
this Order and neither the merger nor the acquisition
of the nonbanking subsidiaries shall occur later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Dallas
pursuant to delegated authority. The determinations as
to Applicant's nonbanking activities are subject to the
conditions set forth in section 225.4(c) of Regulation Y
(12 C.F.R. § 225.4(c)) and to the Board's authority to
require such modification or termination of the activities of a holding company or any of its subsidiaries as
the Board finds necessary to assure compliance with
the provisions and purposes of the Act and the Board's
regulations and orders issued thereunder, or to prevent evasion thereof.
By order of the Board of Governors, effective
April 20, 1983.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Gramley. Voting against this action:
Governor Teeters. Absent and not voting: Chairman Volcker
and Governor Wallich.
JAMES M C A F E E ,
[SEAL]
Associate
Secretary
of the Board
Preferred Equity I n v e s t o r s of Florida, Inc.,
Knoxville, T e n n e s s e e
Order Approving Formation of a Bank Holding
Company and Acquisition of Companies Engaged in
Mortgage Financing, Insurance, Data
Processing,
and Leasing
Activities
Preferred Equity Investors of Florida, Inc., Knoxville,
Tennessee ("Preferred Equity"), 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))
("Act") to become a bank holding company by acquiring approximately 28.6 percent of the voting shares of
Landmark Banking Corporation of Florida, Fort Lauderdale, Florida ("Landmark"), and, thereby, indirectly acquiring an interest in Landmark's five subsid-
388
Federal Reserve Bulletin • May 1983
iary banks: Landmark Bank of Brevard, Melbourne,
Florida ("Brevard Bank"); Landmark First National
Bank of Fort Lauderdale, Fort Lauderdale, Florida
("Fort Lauderdale Bank"); Landmark Bank of Tampa, Tampa, Florida ("Tampa Bank"); Landmark Bank
of Orlando, Orlando, Florida ("Orlando Bank"); and
Landmark Union Trust Bank of St. Petersburg, N.A.,
St. Petersburg, Florida ("St. Petersburg Bank"), (collectively, "Banks").
Preferred Equity has also applied for the Board's
approval under section 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)) to acquire indirectly an interest in the
following nonbanking subsidiaries of Landmark: (1)
Landmark Mortgage Corporation, with offices in Sunrise and St. Petersburg, Florida, which engages in the
origination of mortgages on real estate and the sale of
mortgages to institutional investors; (2) Landmark
Agency, Inc., Fort Lauderdale, Florida, which engages in the sale of credit life and disability insurance
in connection with loans made by Landmark's subsidiaries; (3) Landmark Data Services Corporation, located in Fort Lauderdale, St. Petersburg, and Orlando,
Florida, which engages in the provision of data processing and transmission services for Landmark and its
subsidiaries and for other banks, where the data to be
processed is financial, banking, or economic in nature;
and, (4) Capital America, Inc., with offices in Fort
Lauderdale and Orlando, Florida, and in Atlanta,
Georgia, (5) Capital Associates, Inc., located in Pompano Beach, Florida, and Atlanta, Georgia, and (6)
American Capital Leasing, Inc., Rolling Meadows,
Illinois, all three of which engage in the leasing of
personal property and equipment. These activities
have been determined by the Board to be closely
related to banking (12 C.F.R. §§ 225.4(a)(1), (6), (8),
(9)).
Notice of the applications, affording an opportunity
for interested persons to submit comments, has been
given in accordance with sections 3 and 4 of the Act
(47 Federal Register 55034 (1982)). The time for filing
comments has expired, and the Board has considered
the applications and all comments received in light of
the factors set forth in section 3(c) and the considerations specified in section 4 of the Act.
Applicant, a nonoperating Florida corporation, was
organized for the purpose of becoming a bank holding
company by acquiring all of Landmark's newly issued
cumulative convertible preferred stock, which represents approximately 28.6 percent of the total voting
power in Landmark. 1
1. Although Applicant has agreed to certain restrictions on the
voting and disposition of its preferred stock interest in Landmark,
Applicant would nevertheless control Landmark for purposes of the
BHC Act. (12 U.S.C. § 1841(a)(2)(A)).
Upon acquisition of its interest in Landmark, Applicant would control the tenth largest banking organization in Florida, with approximately $1 billion in deposits, representing 2.4 percent of the total deposits in
commercial banks in the state. 2
None of Landmark's subsidiary banks compete in
the same banking market. Brevard Bank is the third
largest of eight commercial banking organizations in
the South Brevard County banking market and holds
approximately 18.41 percent 3 of total deposits in commercial banks in the market. 4 Fort Lauderdale Bank
competes in the Miami-Fort Lauderdale banking market and is the fifth largest of 68 commercial banking
organizations in the market, controlling about 4.09
percent of total commercial bank deposits therein. 5
Tampa Bank, Orlando Bank, and St. Petersburg Bank
compete in the Tampa, Orlando, and Pinellas County,
banking markets, respectively. 6 Tampa Bank is the
eighth largest of 24 banking organizations in the Tampa banking market, holding approximately 3.53 percent of commercial bank deposits therein. Orlando
Bank is the eleventh largest of 21 commercial banking
organizations in the Orlando market, controlling 2.09
percent of commercial bank deposits in the market. St.
Petersburg Bank is the second largest of 32 banking
organizations in the Pinellas County market, holding
approximately 8.50 percent of total deposits in commercial banks in the relevant market. Neither Applicant nor any of its principals is affilated with any other
banking organization in any of the relevant markets,
and it appears that consummation of the proposal
would not result in any adverse effects upon competition or in an increase in the concentration of banking
resources in any relevant area. Accordingly, the Board
concludes that competitive considerations are consistent with approval of the application.
The financial and managerial resources and future
prospects of Preferred Equity, Landmark, and its
subsidiaries are regarded as generally satisfactory and
consistent with approval. Considerations relating to
the convenience and needs of the communities to be
served also are consistent with approval. Further,
there is no evidence in the record to indicate that
approval of this proposal would result in undue con-
2. Landmark banking data are as of June 30, 1982.
3. Banking data for Banks are as of June 30, 1981.
4. The South Brevard County banking market is approximated by
Brevard County, south of the town of Bonaventure, Florida.
5. The Miami-Fort Lauderdale banking market is approximated by
Broward and Dade Counties, Florida.
6. The Tampa banking market is approximated by Hillsborough
County, and the community of Land O'Lakes in Pasco County,
Florida. The Orlando market is approximated by Orange and Osceola
Counties, and the southern half of Seminole County, Florida. The
Pinellas County banking market is approximated by Pinellas County,
Florida.
Legal Developments
bank subsidiaries is subject to the conditions set forth
in section 225.4(c) of Regulation Y (12 C.F.R.
§ 225.4(c)) and to the Board's authority to require such
modification or termination of the activities of a holding company or any of its subsidiaries as the Board
finds necessary to assure compliance with the provisions and purposes of the Act and the Board's regulations and orders issued thereunder, or to prevent
evasion thereof.
By order of the Board of Governors, effective
April 11, 1983.
centration of resources, decreased or unfair competition, conflicts of interest, unsound banking practices
or other adverse effects on the public interest. Accordingly, the Board has determined that the balance of the
public interest factors it must consider under section 4
of the Act is consistent with approval of the application.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be
and hereby are approved.
The acquisition of Landmark's shares 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 Atlanta acting pursuant
to delegated authority. The determination as to Preferred Equity's acquisition of an interest in the non-
ORDERS APPROVED
By the Board of
389
Voting for this action: Chairman Volcker and Governors
Teeters, Rice, and Gramley. Absent and not voting: Governors Martin, Wallich, and Partee.
JAMES M C A F E E ,
Associate
[SEAL]
UNDER BANK HOLDING COMPANY
Secretary
of the Board
ACT
Governors
During April 1983, the Board of Governors approved the applications listed below. Copies are available upon
request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3
Applicant
Barnett Banks of Florida, Inc.
Jacksonville, Florida
First Dickson Corporation,
Dickson, Tennessee
By Federal Reserve
Board action
(effective
date)
Bank(s)
Barnett Bank of Osceola County,
N.A.,
Kissimmee, Florida
The First National Bank of Dickson,
Dickson, Tennessee
April 29, 1983
April 27, 1983
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
A
r
AppllCant
Alvord Financial Corporation,
Alvord, Texas
American Bankshares, Inc.,
Bowman, Georgia
D
i/ V
-
Bank(s)
Alvord National Bank,
Alvord, Texas
The American Bank,
Bowman, Georgia
Reserve
Bank
Effective
date
Dallas
April 8, 1983
Atlanta
April 1, 1983
390
Federal Reserve Bulletin • May 1983
Section 3—Continued
Applicant
Americorp Financial, Inc.,
Rockford, Illinois
Auburn Security Bancshares, Inc.,
Auburn, Kansas
Bank of New Hampshire Corporation,
Manchester, New Hampshire
Bay Bancorporation,
San Leandro, California
Bay Bancshares, Inc.,
La Porte, Texas
Bazine Bancorp, Inc.,
Bazine, Kansas
CCB Financial Corporation,
Durham, North Carolina
Choteau Bancorporation, Inc.,
Choteau, Montana
Commerce Bancorp, Inc.,
Marlton, New Jersey
Dekalb Financial Corp.,
Waterloo, Indiana
Egyptian Bancshares, Inc.,
Carrier Mills, Illinois
Fairplay Bancorporation, Inc.,
Fairplay, Colorado
Farmers Bancshares of Erick, Inc.,
Erick, Oklahoma
First City Financial Corporation,
Albuquerque, New Mexico
First Citizens Bancshares Corporation,
Pineville, Louisiana
First Granite Bancorporation, Inc.,
Granite City, Illinois
First Guaranty Corporation,
Martin, Kentucky
First National of Nebraska, Inc.,
Omaha, Nebraska
First Overton Bancorp,
Overton, Nebraska
Bank(s)
Reserve
Bank
Effective
date
American National Bank
and Trust Co.,
Rockford Illinois
Colonial Bank of Rockford,
Rockford, Illinois
First National Bank of Woodstock,
Woodstock, Illinois
Carpentersville Savings Bank,
Carpentersville, Illinois
The Security State Bank,
Auburn, Kansas
The Bristol Bank,
Bristol, New Hampshire
Chicago
March 29, 1983
Kansas City
April 11, 1983
Boston
April 15, 1983
Bay Bank of Commerce,
San Leandro, California
Bayshore National Bank of La Porte
La Porte, Texas
Bayport National Bank,
La Porte, Texas
The Bazine State Bank,
Bazine, Kansas
Central Carolina Bank and Trust
Company,
Durham, North Carolina
The Citizens State Bank of Choteau,
Choteau, Montana
Commerce Bank, N.A.,
Marlton, New Jersey
Citizens State Bank,
Waterloo, Indiana
The Egyptian State Bank,
Carrier Mills, Illinois
The Bank of Fairplay,
Fairplay, Colorado
The Farmers National Bank of Erick,
Erick, Oklahoma
Bank of the Southwest,
Rio Rancho, New Mexico
First Bank,
Pineville, Louisiana
San Francisco
March 31, 1983
Dallas
April 4, 1983
Kansas City
April 4, 1983
Richmond
April 4, 1983
Minneapolis
April 19, 1983
Philadelphia
April 17, 1983
Chicago
March 29, 1983
St. Louis
April 15, 1983
Kansas City
April 8, 1983
Kansas City
April 11, 1983
Dallas
March 28, 1983
Atlanta
March 29, 1983
St. Louis
April 12, 1983
Cleveland
March 21, 1983
Kansas City
April 14, 1983
Kansas City
April 15, 1983
Colonial Bank of Granite City,
Granite City, Illinois
The First Guaranty Bank,
Martin, Kentucky
Valley State Bank,
Yankton, South Dakota
Bank of Overton,
Overton, Nebraska
Legal Developments
391
Section 3—Continued
Applicant
First Service Bancshares, Inc.,
Greenville, Kentucky
First United Corporation,
Jackson, Mississippi
Gaines Bancshares, Inc.,
Seminole, Texas
Kansas National Bancorporation,
Inc.,
Goodland, Kansas
Lake Bancshares Corporation,
Langley, Oklahoma
Michigan Bancorp, Inc.,
South Bend, Indiana
Middle States Bancorporation, Inc.,
East Moline, Illinois
North Central Financial Corporation,
Melbourne, Arkansas
Orange Bancorp,
Fountain Valley, California
Outagamie Bank Shares, Inc.,
Appleton, Wisconsin
Phalia Bancshares, Inc.,
Westphalia, Kansas
Pharr Financial Corporation,
Pharr, Texas
St. Paul Bancorporation, Inc.,
St. Paul, Nebraska
South Mississippi Capital Company,
Prentiss, Mississippi
Sunshine Bankshares Corporation,
Fort Walton Beach, Florida
T-Mark, Inc.,
Cheyenne, Wyoming
Texas Independent Bancshares, Inc.,
Hitchcock, Texas
WCB Corporation,
Omro, Wisconsin
Windsor Bancorporation, Inc.,
Windsor, Colorado
Bank(s)
First State Bank of Greenville,
Greenville, Kentucky
Ashland Capital Corporation,
Ashland, Alabama
First National Bank of Ashland,
Ashland, Alabama
First National Bank,
Seminole, Texas
The First Insurance Agency, Inc.,
Goodland, Kansas
First National Bank,
Goodland, Kansas
Bank of the Lakes,
Langley, Oklahoma
Western State Bank,
South Bend, Indiana
Colona Avenue State Bank
East Moline, Illinois
The Bank of North Arkansas,
Melbourne, Arkansas
Prudential Bancorp,
Long Beach California
Southern Pacific Thrift and Loan
Association,
Long Beach, California
The Outagamie Bank,
Appleton, Wisconsin
State Bank of Westphalia,
Westphalia, Kansas
Security State Bank,
Pharr, Texas
St. Paul National Bank,
St. Paul, Nebraska
South Mississippi Bank,
Prentiss, Mississippi
Sunshine Bank,
Fort Walton Beach, Florida
Farmers State Bank,
Lyman, Nebraska
Bank of the West,
Galveston, Texas
Winnebago County Bank,
Omro, Wisconsin
Bank of Windsor,
Windsor, Colorado
Reserve
Bank
Effective
date
St. Louis
April 4, 1983
Atlanta
April 8, 1983
Dallas
April 8, 1983
Kansas City
April 13, 1983
Kansas City
April 14, 1983
Chicago
April 13, 1983
Chicago
April 15, 1983
St. Louis
March 30, 1983
San Francisco
April 5, 1983
Chicago
March 31, 1983
Kansas City
March 28, 1983
Dallas
April 8, 1983
Kansas City
March 29, 1983
Atlanta
April 4, 1983
Atlanta
April 11, 1983
Kansas City
April 5, 1983
Dallas
April 19, 1983
Chicago
April 7, 1983
Kansas City
April 15, 1983
392
Federal Reserve Bulletin • May 1983
Sections 3 and 4
Bank(s)/Nonbanking
company or activity
Applicant
St. Ansgar Bancorporation,
St. Ansgar, Iowa
ORDERS APPROVED
By Federal Reserve
Effective
date
Chicago
St. Ansgar State Bank,
St. Ansgar, Iowa
To engage in general
insurance activities
UNDER BANK MERGER
April 8, 1983
ACT
Banks
Applicant
C. C. State Bank,
Celina, Ohio
Citizens Bank,
Sheboygan, Wisconsin
BNH Acquisition Bank,
Manchester, N e w
Hampshire
First Virginia Bank,
Falls Church, Virginia
PENDING CASES INVOLVING
Reserve
Bank
Effective
date
The Citizens Commercial
Bank & Trust Company,
Celina, Ohio
Citizens South Side Bank,
Sheboygan, Wisconsin
Citizens Bank of Manitowoc,
Manitowoc, Wisconsin
The Bristol Bank,
Bristol, New Hampshire
Cleveland
March 28, 1983
Chicago
April 11, 1983
Boston
April 15, 1983
Farmers and Merchants
State Bank,
Fredericksburg, Virginia
Richmond
March 30, 1983
Bank(s)
THE BOARD OF GOVERNORS
This list of pending cases does not include suits
against the Federal Reserve Banks in which the Board
of Governors is not named a party.
Jet Courier Services, Inc., et al. v. Federal Reserve
Bank of Atlanta,
et al., filed February 1983,
U.S.C.A. for the Sixth Circuit.
Securities Industry Association v. Board of Governors, et al., filed February 1983, U.S.C.A. for the
Second Circuit.
Flagship Banks, Inc. v. Board of Governors, filed
January 1983, U.S.D.C. for the District of Columbia.
Flagship Banks, Inc. v. Board of Governors, filed
October 1982, U.S.D.C. for the District of Columbia.
Hayton v. State of Utah, et al., filed September 1982,
U.S.D.C. for the District of Utah.
Reserve
Bank
Association
of Data Processing Service
Organizations, Inc., et al. v. Board of Governors,
filed
August 1982, U.S.C.A. for the District of Columbia.
Bowler v. Treasurer of the U.S., et al, filed July 1982,
U.S.C.A. for the First Circuit.
The Philadelphia Clearing House Association, et al. v.
Board of Governors, filed July 1982, U.S.D.C. for
the Eastern District of Pennsylvania.
Richter v. Board of Governors, et al., filed May 1982,
U.S.D.C. for the Northern District of Illinois.
Wyoming Bancorporation v. Board of Governors, filed
May 1982, U.S.C.A. for the Tenth Circuit.
First Bancorporation
v. Board of Governors,
filed
April 1982, U.S.C.A. for the Tenth Circuit.
Charles G. Vick v. Paul A. Volcker, et al., filed March
1982, U.S.D.C. for the District of Columbia.
Jolene Gustafson v. Board of Governors, filed March
1982, U.S.C.A. for the Fifth Circuit.
Legal Developments
Edwin F. Gordon v. Board of Governors, et al., filed
October 1981, U.S.C.A. for the Eleventh Circuit
(two consolidated cases).
Allen Wolf son v. Board of Governors, filed September
1981, U.S.D.C. for the Middle District of Florida.
Bank Stationers Association, Inc., et al. v. Board of
Governors, filed July 1981, U.S.D.C. for the Northern District of Georgia.
Public Interest Bounty Hunters v. Board of Governors, et al., filed June 1981, U.S.D.C. for the
Northern District of Georgia.
First Bank & Trust Company v. Board of Governors,
filed February 1981, U.S.D.C. for the Eastern District of Kentucky.
393
9 to 5 Organization for Women Office Workers v.
Board of Governors,
filed D e c e m b e r 1980,
U.S.D.C. for the District of Massachusetts.
Securities Industry Association v. Board of Governors, et al., filed October 1980, U.S.C.A. for the
District of Columbia.
A. G. Becker, Inc. v. Board of Governors, et al., filed
October 1980, U.S.C.A. for the District of Columbia.
A. G. Becker, Inc. v. Board of Governors, et al., filed
August 1980, U.S.C.A. for the District of Columbia.
Berkovitz, et al. v. Government of Iran, et al., filed
June 1980, U.S.D.C. for the Northern District of
California.
A1
Financial and Business Statistics
CONTENTS
Domestic
A3
A4
A5
A6
Financial
Statistics
Monetary aggregates and interest rates
Reserves of depository institutions, Reserve
Bank credit
Reserves and borrowings of depository
institutions
Federal funds and repurchase agreements of
large member banks
POLIC YINSTR
WEEKLY REPORTING
COMMERCIAL
BANKS
Assets and liabilities
A20
All reporting banks
A21
Banks with assets of $1 billion or more
All
Banks in N e w York City
A23
Balance sheet memoranda
A24
Branches and agencies of foreign banks
A24
Commercial and industrial loans
A25 Gross demand deposits of individuals,
partnerships, and corporations
UMENTS
A7
A8
A9
Federal Reserve Bank interest rates
Reserve requirements of depository institutions
Maximum interest rates payable on time and
savings deposits at federally insured institutions
A l l Federal Reserve open market transactions
FEDERAL RESERVE
BANKS
A12 Condition and Federal Reserve note statements
A13 Maturity distribution of loan and security
holdings
FINANCIAL
MARKETS
A26 Commercial paper and bankers dollar
acceptances outstanding
All Prime rate charged by banks on short-term
business loans
All Terms of lending at commercial banks
A28 Interest rates in money and capital markets
A29 Stock market—Selected statistics
A30 Selected financial institutions—Selected assets
and liabilities
FEDERAL
FINANCE
MONETAR Y AND CREDIT AGGREGA TES
A14 Aggregate reserves of depository institutions
and monetary base
A15 Money stock measures and components
A16 Bank debits and deposit turnover
A17 Loans and securities of all commercial banks
COMMERCIAL BANKING
INSTITUTIONS
A18 Major nondeposit funds
A19 Assets and liabilities, last Wednesday-of-month
series
A31
A32
A33
A33
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
A34 U.S. government securities dealers—
Transactions, positions, and financing
A35 Federal and federally sponsored credit
agencies—Debt outstanding
2
Federal Reserve Bulletin • May 1983
International
SECURITIES MARKETS AND
CORPORATE FINANCE
A36 New security issues—State and local
governments and corporations
A37 Open-end investment companies—Net sales and
asset position
A3 7 Corporate profits and their distribution
A38 Nonfinancial corporations—Assets and
liabilities
A38 Total nonfarm business expenditures on new
plant and equipment
A39 Domestic finance companies—Assets and
liabilities and business credit
REAL
ESTATE
A40 Mortgage markets
A41 Mortgage debt outstanding
CONSUMER INSTALLMENT
CREDIT
A42 Total outstanding and net change
A43 Terms
A44 Funds raised in U.S. credit markets
A45 Direct and indirect sources of funds to credit
markets
Nonfinancial
Statistics
A46 Nonfinancial business activity—Selected
measures
A46 Output, capacity, and capacity utilization
A47 Labor force, employment, and unemployment
A48 Industrial production—Indexes and gross value
A50 Housing and construction
A51 Consumer and producer prices
A52 Gross national product and income
A53 Personal income and saving
A54
A55
A55
A55
U.S. international transactions—Summary
U . S . foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A56 Foreign branches of U.S. banks—Balance sheet
data
A58 Selected U.S. liabilities to foreign official
institutions
REPORTED BY BANKS IN THE UNITED
STATES
A58
A59
A61
A62
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A62 Banks' own claims on unaffiliated foreigners
A63 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED BY NONBANKING
BUSINESS
ENTERPRISES IN THE UNITED STATES
A64 Liabilities to unaffiliated foreigners
A65 Claims on unaffiliated foreigners
FLOW OF FUNDS
Domestic
Statistics
SECURITIES HOLDINGS AND
TRANSACTIONS
A66 Foreign transactions in securities
A67 Marketable U.S. Treasury bonds and notes—
Foreign holdings and transactions
INTEREST AND EXCHANGE
RATES
A67 Discount rates of foreign central banks
A68 Foreign short-term interest rates
A68 Foreign exchange rates
A69 Guide to Tabular
Statistical Releases,
Tables
Presentation,
and Special
Domestic Financial Statistics
1.10
A3
MONETARY AGGREGATES A N D INTEREST RATES
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent) 1
Item
1982
Q2
1
2
3
4
Reserves of depository
Total
Required
Nonborrowed
Monetary base 2
5
6
7
8
Concepts of money and liquid
Ml
M2
M3
L
1983
Q4
Q3
1982
Nov.
Ql
1983
Dec.
Jan.
Feb.
Mar.
institutions
4.8
5.4
8.5
7.7
5.1
4.9
11.5
6.8
11.0
10.1
12.7
8.0
1.1
0.8
0.6
8.6
14.3
14.5
10.1
7.6
11.1
8.3
10.9
8.7
-19.5
-21.2
-16.7
4.7
6.6
10.2
5.1
11.4
19.7
20.0
13.7
15.0
3.2
7.0
8.5
10.5
6.1
10.9
12.5
12.1
13.1
9.3
9.5
8.8
14.0
19.8
9.7
n.a.
13.6
9.5
9.3
7.2
10.6
8.9
3.7
6.7
9.8
29.8
12.0
n.a.
22.4
23.9
13.2
n.a.
15.6
10.7
7.7
n.a.
Time and savings deposits
Commercial banks
Total
9
10
Savings 4
Small-denomination time 5
11
Large-denomination time 6
12
13 Thrift institutions 7
13.4
-1.7
17.0
17.0
4.1
18.2
-1.8
18.7
26.8
6.5
3.2
13.1
-0.4
-6.8
6.2
12.1
-44.4
-48.6
-58.6
11.1
-5.0
28.8
-2.2
-22.9
7.4
5.5
-21.7
-18.2
-44.3
4.5
27.4
-88.2
-83.6
-97.1
8.3
8.7
-57.1
-63.6
-60.9
20.3
3.0
-18.3
-38.7
-28.1
16.8
14 Total loans and securities at commercial banks 8
-6.7
6.0
5.5
9.8
1.5
10.5
12.8
7.6
11.2
assets3
Interest rates (levels, percent per annum)
1982
Q2
15
16
17
18
Short-term rates
Federal funds 9
Discount window borrowing 1 0
Treasury bills (3-month market yield) 11
Commercial paper (3-month) 11 ' 1 *
Long-term rates
Bonds
19
U.S. government 1 3
20
State and local government
21
Aaa utility (new issue)'
22 Conventional mortgages
Q4
Q3
1982
Ql
Dec.
1983
Jan.
Feb.
Mar.
Apr.
14.52
12.00
12.42
13.81
11.01
10.83
9.32
11.15
9.28
9.25
7.90
8.80
8.65
8.50
8.11
8.34
8.95
8.73
7.94
8.51
8.68
8.50
7.86
8.17
8.51
8.50
8.11
8.34
8.77
8.50
8.35
8.52
8.80
8.50
8.21
8.53
13.74
12.33
15.73
16.63
12.94
11.39
14.25
15.65
10.72
9.90
12.10
13.79
10.87
9.43
11.89
13.26
10.62
9.96
11.84
13.62
10.78
9.50
12.05
13.44
11.03
9.58
12.08
13.18
10.80
9.20
11.70
13.17
10.63
9.05
11.41
13.02
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.
2. Includes reserve balances at Federal Reserve Banks in the current week
plus vault cash held two weeks earlier used to satisfy reserve requirements at all
depository institutions plus currency outside the U.S. Treasury, Federal Reserve
Banks, the vaults of depository institutions, and surplus vault cash at depository
institutions.
3. M l : Averages of daily figures for (1) currency outside the Treasury, Federal
Reserve Banks, and the vaults of commercial banks; (2) traveler's checks of
nonbank issuers; (3) demand deposits at all commercial banks other than those
due to domestic banks, the U.S. government, and foreign banks and official
institutions less cash items in the process of collection and Federal Reserve float ;
and (4) negotiable order of withdrawal (NOW) and automatic transfer service
(ATS) accounts at banks and thrift institutions, credit union share draft (CUSD)
accounts, and demand deposits at mutual savings banks.
M2: Ml plus savings and small-denomination time deposits at all depository
institutions, overnight repurchase agreements at commercial banks, overnight
Eurodollars held by U.S. residents other than banks at Caribbean branches of
member banks, and balances of money market mutual funds (general purpose and
broker/dealer).
M3: M2 plus large-denomination time deposits at all depository institutions
and term RPs at commercial banks and savings and loan associations and balances
of institution-only money market mutual funds.
L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents
other than banks, bankers acceptances, commercial paper, Treasury bills and
other liquid Treasury securities, and U.S. savings bonds.
4. Savings deposits exclude N O W and ATS accounts at commercial banks
and thrifts and CUSD accounts at credit unions.
1983
5. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000.
6. Large-denomination time deposits are those issued in amounts of $100,000
or more.
7. Savings and loan associations, mutual savings banks, and credit unions.
8. Changes calculated from figures shown in table 1.23. Beginning December
1981, growth rates reflect shifts of foreign loans and securities from U.S. banking
offices to international banking facilities.
9. Averages of daily effective rates (average of the rates on a given date
weighted by the volume of transactions at those rates).
10. Rate for the Federal Reserve Bank of New York.
11. Quoted on a bank-discount basis.
12. Unweighted average of offering rates quoted by at least five dealers.
13. Market yields adjusted to a 20-year maturity by the U.S. Treasury.
14. Bond Buyer series for 20 issues of mixed quality.
15. Weighted averages of new publicly offered bonds rated Aaa, Aa, and A by
Moody's Investors Service and adjusted to an Aaa basis. Federal Reserve
compilations.
16. Average rates on new commitments for conventional first mortgages on
new homes in primary markets, unweighted and rounded to nearest 5 basis points,
from Dept. of Housing and Urban Development.
NOTE. Revisions in reserves of depository institutions reflect the transitional
phase-in of reserve requirements as specified in the Monetary Control Act of
1980.
A4
DomesticNonfinancialStatistics • May 1983
1.11
RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1983
1983
Factors
Mar. 16
Feb.
Mar.
Apr.
Mar. 23
Mar. 30
Apr. 6
Apr. 13
155,365
155,883
159,155
155,642
157,044
155,475
157,764
157,557
160,482
159,622
134,379
133,961
418
8,945
8,924
21
17
557
2,083
9,384
11,142
4,618
13,786
135,201
135,087
114
8,929
8,917
12
9
850
1,948
8,946
11,138
4,618
13,786
137,877
137,453
424
8,931
8,910
21
72
995
1,901
9,379
11,137
4,618
13,786
135,149
135,149
0
8,915
8,915
0
0
890
1,838
8,851
11,138
4,618
13,786
136,337
136,337
0
8,915
8,915
0
0
641
2,098
9,054
11,138
4,618
13,786
134,460
134,460
0
8,915
8,915
0
0
893
1,957
9,250
11,138
4,618
13,786
136,396
136,396
0
8,915
8,915
0
0
1,757
1,566
9,129
11,138
4,618
13,786
136,576
136,576
0
8,912
8,912
0
0
575
2,250
9,244
11,138
4,618
13,786
138,847
138,847
0
8,908
8,908
0
0
665
2,631
9,431
11,137
4,618
13,786
138,223
137,690
533
8,920
8,908
12
41
1,171
1,746
9,521
11,135
4,618
13,786
151,650
457
153,186
482
155,354
514
153,369
481
153,367
485
153,356
493
154,670
505
155,812
513
155,643
515
155,098
519
3,200
236
551
3,361
244
547
3,841
254
642
3,690
229
565
3,387
219
584
2,534
231
521
3,861
300
616
3,009
239
622
3,267
236
636
4,165
253
636
Apr. 20P
Apr. 27p
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
2
3
4
5
6
7
8
9
10
11
12
13
14
U.S. government securities'
Bought outright
Held under repurchase agreements
Federal agency securities
Bought outright
Held under repurchase agreements
Acceptances
Loans
Float
Other Federal Reserve assets
Gold stock
Special drawing rights certificate account .
Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserves, with Federal
Reserve Banks
17 Treasury
18 Foreign
19 Other
20 Required clearing balances
21 Other Federal Reserve liabilities and
capital
22 Reserve accounts 2
511
578
625
579
597
598
610
616
633
634
4,776
23,530
4,858
22,168
4,995
22,470
4,843
21,427
4,809
23,138
4,911
22,373
4,964
21,780
4,883
21,404
5,018
24,075
5,015
22,839
End-of-month figures
Wednesday figures
1983
1983
Mar. 16
Feb.
Mar.
Apr.
Mar. 23
Mar. 30
23 Reserve Bank credit outstanding
153,936
158,047
161,866
158,633
157,499
156,688
158,967
156,759
161,279
165,501
24
25
26
27
28
29
30
31
32
33
135,561
135,561
0
8,923
8,923
0
0
1,155
-2,664
10,961
136,651
136,651
0
8,915
8,915
0
0
2,808
486
9,187
141,550
137,864
3,686
9,156
8,908
248
704
848
-1,124
10,732
136,293
136,293
0
8,915
8,915
0
0
3,730
177
9,518
136,811
136,811
0
8,915
8,915
0
0
825
1,590
9,358
134,660
134,660
0
8,915
8,915
0
0
1,985
1,743
9,385
136,791
136,791
0
8,915
8,915
0
0
887
3,094
9,280
135,419
136,419
0
8,908
8,908
0
0
519
2,559
9,354
138,899
138,899
0
8,908
8,908
0
0
1,263
2,717
9,492
141,108
137,376
3,732
8,995
8,908
87
285
4,073
1,274
9,766
11,139
4,618
13,786
11,138
4,618
13,786
11,135
4,618
13,786
11,138
4,618
13,786
11,138
4,618
13,786
11,138
4,618
13,786
11,138
4,618
13,786
11,137
4,618
13,786
11,137
4,618
13,786
11,135
4,618
13,786
151,872
465
154,307
498
155,307
524
153,760
481
153,675
485
154,250
495
155,715
513
156,224
513
155,729
515
155,661
521
2,856
352
486
535
3,572
425
535
601
6,015
322
796
641
3,935
237
670
575
3,118
199
478
595
2,116
250
575
598
4,393
194
523
608
3,523
212
554
615
4,5%
220
620
633
6,803
194
668
634
4,988
21,924
4,834
22,816
5,253
22,547
4,828
23,688
4,683
23,807
4,757
23,188
4,763
21,799
4,764
19,895
4,818
23,689
4,994
25,564
Apr. 6
Apr. 13
Apr. 20
Apr. 27
SUPPLYING RESERVE F U N D S
U.S. government securities'
Bought outright
Held under repurchase agreements
Federal agency securities
Bought outright
Held under repurchase agreements
Acceptances
Loans
Float
Other Federal Reserve assets
34 Gold stock
35 Special drawing rights certificate account .
36 Treasury currency outstanding
ABSORBING RESERVE FUNDS
37 Currency in circulation
38 Treasury cash holdings
Deposits, other than reserves, with Federal
Reserve Banks
39 Treasury
40 Foreign
41 Other
42 Required clearing balances
43 Other Federal Reserve liabilities and
capital
44 Reserve accounts 2
1. Includes securities loaned—fully guaranteed by U.S government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Excludes required clearing balances,
NOTE. For amounts of currency and coin held as reserves, see table 1.12.
Depository Institutions
1.12
RESERVES A N D BORROWINGS
A5
Depository Institutions
Millions of dollars
Monthly averages of daily figures
Reserve classification
Dec.
1 Reserve balances with Reserve Banks'
2 Total vault cash (estimated)
3 Vault cash at institutions with required
reserve balances 2
4 Vault cash equal to required reserves at
other institutions
5 Surplus vault cash at other institutions3
6 Reserve balances + total vault cash 4
7 Reserve balances + total vault cash used
to satisfy reserve requirements4-5
8 Required reserves (estimated)
9 Excess reserve balances at Reserve Banks4-6
10 Total borrowings at Reserve Banks
11
Seasonal borrowings at Reserve Banks
12
Extended credit at Reserve Banks
1982
1981
Aug.
Sept.
Oct.
1983
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.P
26,163
19,538
24,471
19,500
23,385
19,921
24,252
19,578
24,604
19,807
24,804
20,392
24,431
21,454
23,530
20,035
22,168
19,484
22,470
19,568
13,577
13,188
13,651
13,658
13,836
14,292
14,602
13,705
13,027
13,305
2,178
3,783
45,701
2,518
3,794
43,971
2,927
3,343
43,306
2,677
3,243
43,830
2,759
3,212
44,411
2,757
3,343
45,196
2,829
4,023
45,885
2,562
3,768
43,565
2,844
3,613
41,652
2,753
3,510
42,038
41,918
41,606
312
642
53
149
40,177
39,866
311
510
119
94
39,963
39,579
384
976
102
118
40,587
40,183
404
455
86
141
41,199
40,797
402
579
47
188
•41,853
41,353
500
697
33
187
41,862
41,316
546
500
33
156
39,797
39,362
435
557
39
277
38,039
37,602
437
850
53
318
38,528
38,184
344
995
82
407
Weekly averages of daily figures for week ending
1983
Feb. 23
13 Reserve balances with Reserve Banks'
14 Total vault cash (estimated)
15 Vault cash at institutions with required
reserve balances 2
16 Vault cash equal to required reserves at
other institutions
17 Surplus vault cash at other institutions3
18 Reserve balances + total vault cash 4
19 Reserve balances + total vault cash used
to satisfy reserve requirements4-5
20 Required reserves (estimated)
21 Excess reserve balances at Reserve Banks4-6
22 Total borrowings at Reserve Banks
23
Seasonal borrowings at Reserve Banks
24
Extended credit at Reserve Banks
Mar. 2
Mar. 16
Mar. 23
Mar. 30
Apr. 6
Apr. 13
Apr. 20?
Apr. TIP
24,354
18,684
23,778
19,663
21,328
19,859
21,427
20,307
23,138
18,297
22,373
19,392
21,780
19,692
21,404
20,059
24,075
18,613
22,839
19,681
13,168
13,631
12,992
13,116
12,652
13,137
13,285
13,198
12,935
13,479
2,161
3,355
43,038
2,433
3,599
43,441
3,039
3,828
41,187
3,237
3,954
41,734
2,438
3,207
41,435
2,779
3,476
41,765
2,863
3,544
41,472
3,126
3,735
41,463
2,402
3,276
42,688
2,744
3,458
42,520
39,683
39,377
306
475
45
335
39,842
39,308
534
710
43
295
37,359
36,873
486
626
44
297
37,780
37,369
411
890
44
326
38,228
37,896
332
641
59
346
38,289
37,825
464
893
62
305
37,928
37,296
632
1,757
80
328
37,728
37,165
563
575
72
353
39,412
39,173
239
665
77
405
39,062
38,619
443
1,171
90
484
1. As of Aug. 13, 1981, excludes required clearing balances of all depository
institutions.
2. Before Nov. 13, 1980, the figures shown reflect only the vault cash held by
member banks.
3. Total vault cash at institutions without required reserve balances less vault
cash equal to their required reserves.
4. Adjusted to include waivers of penalties for reserve deficiencies in accordance with Board policy, effective Nov. 19, 1975, of permitting transitional relief on
a graduated basis over a 24-month period when a nonmember bank merged into an
Mar. 9
existing member bank, or when a nonmember bank joins the Federal Reserve
System. For weeks for which figures are preliminary, figures by class of bank do
not add to total because adjusted data by class are not available.
5. Reserve balances with Federal Reserve Banks, which exclude required
clearing balances plus vault cash at institutions with required reserve balances
plus vault cash equal to required reserves at other institutions.
6. Reserve balances with Federal Reserve Banks, which exclude required
clearing balances plus vault cash used to satisfy reserve requirements less
required reserves. (This measure of excess reserves is comparable to the old
excess reserve concept published historically.)
A6
DomesticNonfinancialStatistics • May 1983
1.13
FEDERAL FUNDS AND REPURCHASE AGREEMENTS
Large M e m b e r Banks1
Averages of daily figures, in millions of dollars
1983, week ending Wednesday
By maturity and source
Mar. 2
One day and continuing contract
1 Commercial banks in United States
2 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies .
3 Nonbank securities dealers
4 All other
Mar. 9
Mar. 16
Mar. 23
Mar. 30
Apr. 6
Apr. 13
Apr. 20
Apr. 27
61,536
68,175
64,608
60,985
58,326
67,276
69,189
63,218
56,498
29,080
4,408
26,048
29,565
4,471
24,934
29,296
4,259
25,052
28,876
4,649
24,475
24,571
4,250
23,790
25,310
4,139
22,385
26,703
4,322
25,794
28,252
4,164
24,030
28,902
5,375
25,893
All other maturities
5 Commercial banks in United States
6 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies .
7 Nonbank securities dealers
8 All other
4,446
4,376
4,500
4,778
5,292
5,988
4,934
5,270
4,860
9,221
5,213
9,194
9,484
4,997
8,918
9,806
4,687
8,954
10,088
4,801
8,820
11,005
5,518'
9,714'
11,456
5,992
10,998
10,509
5,323
7,904
10,560
5,566
9,707
9,681
5,944
8,930
MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract
9 Commercial banks in United States
10 Nonbank securities dealers
24,415
4,636
25,700
5,121
23,208
4,467
22,144
4,312r
20,411'
4,356r
25,797
4,481
27,486
4,532
24,820
4,252
22,555
4,337
1. Banks with assets of $1 billion or more as of Dec. 31, 1977.
Policy Instruments
1.14
All
FEDERAL RESERVE B A N K INTEREST RATES
Percent per annum
Current and previous levels
Extended credit 1
Short-term adjustment credit
and seasonal credit
Federal Reserve
Bank
First 60 days
of borrowing
Rate on
4/30/83
Efifective
date
Previous
rate
Rate on
4/30/83
8'/2
12/14/82
12/15/82
12/17/82
12/15/82
12/15/82
12/14/82
9
Chicago
St. Louis
Minneapolis
Kansas City . . . .
Dallas
San F r a n c i s c o . . .
8'/2
12/14/82
12/14/82
12/14/82
12/15/82
12/14/82
12/14/82
9
8
After 150 days
Efifective date
for current rates
Previous
rate
Rate on
4/30/83
Previous
rate
Rate on
4/30/83
Previous
rate
9
9'/2
10
10'/2
11
8'/2
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Next 90 days
of borrowing
/2
91/2
9
10
101/2
12/14/82
12/15/82
12/17/82
12/15/82
12/15/82
12/14/82
12/14/82
12/14/82
12/14/82
12/15/82
12/14/82
12/14/82
11
Range of rates in recent years 2
Efifective date
In effect Dec 31, 1973
1974— Apr. 25
30
Dec. 9
16
Range (or
level)—
All F.R.
Banks
lxh
71/2—8
8
3
7 /4-8
73/4
6
10
24
Feb. 5
7
Mar. 10
14
May 16
23
7V4-73/4
71/4—73/4
71/4
19
23
Nov. 22
26
51/2-6
SVi
1975— Jan.
1976— Jan.
1977— Aug. 30
31
Sept. 2
Oct. 26
9
20
May 11
12
1978— Jan.
63/4-71/4
63/4
61/4-63/4
61/4
6-61/4
6
51/4-5 Vi
5'/4
5i/4-53/4
51/4-53/4
53/4
6
6-6V2
6l/>
6i/i-7
7
F.R.
Bank
of
N.Y.
IV2
8
8
73/4
73/4
73/4
71/4
IV*
63/4
63/4
61/4
61/4
6
6
5/
12
52
V
5>/4
5/
14
51/4
53/4
53/4
6
61/2
6 '/2
7
7
Effective
1978-- July
3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
I-1 Vi
7'/4
73/4
8
8 - 8 Vl
m
8/—1
I 9/
2 2
9'/2
F.R.
Bank
of
N.Y.
7/
14
7'/4
3
7/4
8
82
V
81/2
9>/2
9>/2
Effective date
1981— May
Nov.
Dec.
1982—July
Aug.
1979-- J u l y 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
10
10-10'/2
1980-- Feb. 15
19
May 29
30
June 13
16
July 28
29
Sept. 26
Nov. 17
Dec. 5
8
12-13
13
12-13
13
13
13
12
11-12
10-11
10
12
13-14
14
13-14
13
12
20
23
2
3
111/2-12
IIV2
11-1 l>/>
11
101/2
10-10'/>
10
14
14
13
13
12
IIV2
UV2
11
11
10'/2
10
10
12
13
13
F.R.
Bank
of
N.Y.
10
10
12-13
13
Range (or
levelsAll F.R.
Banks
5
8
2
6
4
12
1. Applicable to advances when exceptional circumstances or practices involve
only a particular depository institution and to advances when an institution is
under sustained liquidity pressures. See section 201.3(b)(2) of Regulation A.
2. Rates for short-term adjustment credit. For description and earlier data see
the following publications of the Board of Governors: Banking and Monetary
Statistics, 1914-1941 and 1941-1970; Annual Statistical Digest, 1970-1979, and
1980.
Range (or
level)—
All F.R.
Banks
1V-1
0 21
1
1
II-12
1
2
11
11
10
\0V2
IOV2
11
11
12
12
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
9/—0
12 1
9'/2
9-91/2
9
SVl-9
81/2-9
81/2
9'/2
9/
12
9
9
9l
8 A.
8I/2
11
11
11
In effect Apr. 30, 1983
81/2
8'/2
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than 4 weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. There was no surcharge until Nov. 17, 1980, when a 2 percent surcharge was
adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and
to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective
Sept. 22, 1981, and to 2 percent effective Oct. 12. As of Oct. 1, the formula for
applying the surcharge was changed from a calendar quarter to a moving 13-week
period. The surcharge was eliminated on Nov. 17, 1981.
A8
DomesticNonfinancialStatistics • May 1983
1.15
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 1
Percent of deposits
Type of deposit, and deposit interval
in millions of dollars
Member bank requirements
before implementation of the
Monetary Control Act
Type of deposit, and
deposit interval5
Effective date
2
10-100
100-400
Over 400
7
9'/2
1 34
1/
123/4
16'/4
Time and savings2'3
Savings
Time4
0-5, by maturity
30-179 days
180 days to 4 years
4 years or more . . .
Over 5, by maturity
30-179 days
180 days to 4 years
4 years or more . . .
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
Net transaction accounts -*
$0-$26.3 million
Over $26.3 million
Nonpersonal time deposits9
By original maturity
Less than 2Vi years
2Vi years or more
3/16/67
Eurocurrency liabilities
All types
3
V/2
3/16/67
1/8/76
10/30/75
6
12/12/74
1/8/76
10/30/75
1
2Vi
1
1. For changes in reserve requirements beginning 1963, see Board's Annual
Statistical Digest, 1971-1975 and for prior changes, see Board's Annual Report
for 1976, table 13. Under provisions of the Monetary Control Act, depository
institutions include commercial banks, mutual savings banks, savings and loan
associations, credit unions, agencies and branches offoreign banks, and Edge Act
corporations.
2. Requirement schedules are graduated, and each deposit interval applies to
that part of the deposits of each bank. Demand deposits subject to reserve
requirements were gross demand deposits minus cash items in process of
collection and demand balances due from domestic banks.
The Federal Reserve Act as amended through 1978 specified different ranges of
requirements for reserve city banks and for other banks. Reserve cities were
designated under a criterion adopted effective Nov. 9, 1972, by which a bank
having net demand deposits of more than $400 million was considered to have the
character of business of a reserve city bank. The presence of the head office of
such a bank constituted designation of that place as a reserve city . Cities in which
there were Federal Reserve Banks or branches were also reserve cities. Any
banks having net demand deposits of $400 million or less were considered to have
the character of business of banks outside of reserve cities and were permitted to
maintain reserves at ratios set for banks not in reserve cities.
Effective Aug. 24, 1978, the Regulation M reserve requirements on net balances
due from domestic banks to their foreign branches and on deposits that foreign
branches lend to U.S. residents were reduced to zero from 4 percent and 1 percent
respectively. The Regulation D reserve requirement of borrowings from unrelated
banks abroad was also reduced to zero from 4 percent.
Effective with the reserve computation period beginning Nov. 16, 1978,
domestic deposits of Edge corporations were subject to the same reserve
requirements as deposits of member banks.
3. Negotiable order of withdrawal (NOW) accounts and time deposits such as
Christmas and vacation club accounts were subject to the same requirements as
savings deposits.
The average reserve requirement on savings and other time deposits before
implementation of the Monetary Control Act had to be at least 3 percent, the
minimum specified by law.
4. Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent
was imposed on large time deposits of $100,000 or more, obligations of affiliates,
and ineligible acceptances. This supplementary requirement was eliminated with
the maintenance period beginning July 24, 1980.
Effective with the reserve maintenance period beginning Oct. 25, 1979, a
marginal reserve requirement of 8 percent was added to managed liabilities in
excess of a base amount. This marginal requirement was increased to 10 percent
beginning Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and
was eliminated beginning July 24, 1980. Managed liabilities are defined as large
time deposits, Eurodollar borrowings, repurchase agreements against U.S.
government and federal agency securities, federal funds borrowings from nonmember institutions, and certain other obligations. In general, the base for the
marginal reserve requirement was originally the greater of (a) $100 million or (b)
the average amount of the managed liabilities held by a member bank, Edge
corporation, or family of U.S. branches and agencies of a foreign bank for the two
reserve computation periods ending Sept. 26, 1979. For the computation period
beginning Mar. 20, 1980, the base was lowered by (a) 7 percent or (b) the decrease
in an institution's U.S. office gross loans to foreigners and gross balances due
from foreign offices of other institutions between the base period (Sept. 13-26,
1979) and the week ending Mar. 12, 1980, whichever was greater. For the
computation period beginning May 29, 1980, the base was increased by 7'/2
Percent
1
Net demand
0-2
2-10
Depository institution requirements
after implementation of the
Monetary Control Act 6
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. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 97320) provides that $2 million of reservable liabilities (transaction accounts,
nonpersonal time deposits, and Eurocurrency liabilities) of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the next succeeding calendar year by 80 percent of the
percentage increase in the total reservable liabilities of all depository institutions,
measured on an annual basis as of June 30. No corresponding adjustment is to be
made in the event of a decrease. Effective Dec. 9, 1982, the amount of the
exemption was established at $2.1 million. In determining the reserve requirements of a depository institution, the exemption shall apply in the following order:
(1) nonpersonal money market deposit accounts (MMDAs) authorized under 12
CFR section 1204.122; (2) net NOW accounts (NOW accounts less allowable
deductions); (3) net other transaction accounts; and (4) nonpersonal time deposits
or Eurocurrency liabilities starting with those with the highest reserve ratio. With
respect to NOW accounts and other transaction accounts, the exemption applies
only to such accounts that would be subject to a 3 percent reserve requirement.
6. For nonmember banks and thrift institutions that were not members of the
Federal Reserve System on or after July 1, 1979, a phase-in period ends Sept. 3,
1987. For banks that were members on or after July 1, 1979, but withdrew on or
before Mar. 31, 1980, the phase-in period established by Public Law 97-320 ends
on Oct. 24, 1985. For existing member banks the phase-in period is about three
years, depending on whether their new reserve requirements are greater or less
than the old requirements. All new institutions will have a two-year phase-in
beginning with the date that they open for business, except for those institutions
that have total reservable liabilities of $50 million or more.
7. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers (in excess
of three per month) for the purpose of making payments to third persons or others.
However, MMDAs and similar accounts offered by institutions not subject to the
rules of the Depository Institutions Deregulation Committee (D1DC) that permit
no more than six preauthorized, automatic, or other transfers per month of which
no more than three can be checks—are not transaction accounts (such accounts
are savings deposits subject to time deposit reserve requirements.)
8. The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage increase in transaction accounts held by
all depository institutions determined as of June 30 each year. Effective Dec. 31,
1981, the amount was increased accordingly from $25 million to $26 million; and
effective Dec. 30, 1982, to $26.3 million.
9. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which the beneficial interest is
held by a depositor that is not a natural person. Also included are certain
transferable time deposits held by natural persons, and certain obligations issued
to depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.
NOTE. Required reserves must be held in the form of deposits with Federal
Reserve Banks or vault cash. After implementation of the Monetary Control Act,
nonmembers may maintain reserves on a pass-through basis with certain approved institutions.
Policy Instruments All
1.16
MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions
Percent per annum
Savings and loan associations and
mutual savings banks (thrift institutions)
Commercial banks
Type and maturity of deposit
In effect April 30, 1983
Percent
1 Savings
2 Negotiable order of withdrawal accounts 2
Effective
date
Previous maximum
Percent
In effect April 30, 1983
Effective
date
Percent
5'/>
5'/4
5'/4
5'/4
7/1/79
12/31/80
5
5
7/1/73
1/1/74
5»/4
53/4
6
6'/>
7'/4
7 Vi
73/4
8/1/79
1/1/80
7/1/73
7/1/73
11/1/73
12/23/74
6/1/78
5
5Vi
51/2
53/4
53/4
9
7/1/73
7/1/73
1/21/70
1/21/70
1/21/70
Effective
date
Previous maximum
Percent
5'/4
5
7/1/79
12/31/80
Effective
date
(')
1/1/74
3
3
4
5
6
7
9
11
12
Time accounts
Fixed ceiling rates by maturity4
14-89 days'
90 days to 1 year
1 to 2 years 7
2 to 2'A years 7
2'/i to 4 years 7
6 to 8 years 8
Issued to governmental units (all
maturities) 10
IRAs and Keogh (H.R. 10) plans (3 years
or more) 10 ' 11
()
71/4
(6)
11/1/73
(6)
6
6V2
63/4
V/2
73/4
8
1/1/80
(6)
53/4
53/4
6
6
(')
(')
11/1/73
12/23/74
6/1/78
8
6/1/78
73/4
12/23/74
8
6/1/78
8
6/1/78
73/4
7/6/77
8
O
11/1/73
73/4
73/4
12/23/74
7/6/77
9. Between July 1, 1973, and Oct. 31, 1973, certificates maturing in 4 years or
more with minimum denominations of $1,000 had no ceiling; however, the amount
of such certificates that an institution could issue was limited to 5 percent of its
total time and savings deposits. Sales in excess of that amount, as well as
certificates of less than $1,000, were limited to the 6'/2 percent ceiling on time
deposits maturing in 2'/2 years or more. Effective Nov. 1, 1973, ceilings were
reimposed on certificates maturing in 4 years or more with minimum denomination of $ 1,000. There is no limitation on the amount of these certificates that banks
can issue.
10. Accounts subject to fixed-rate ceilings. See footnote 8 for minimum
denomination requirements.
11. Effective Jan. 1, 1980, commercial banks are permitted to pay the same rate
as thrifts on IRA and Keogh accounts and accounts of governmental units when
such deposits are placed in 2'/2-year-or-more variable-ceiling certificates or in 26week money market certificates regardless of the level of the Treasury bill rate.
NOTE. Before Mar. 31, 1980, the maximum rates that could be paid by federally
insured commercial banks, mutual savings banks, and savings and loan associations were established by the Board of Governors of the Federal Reserve System,
the Board of Directors of the Federal Deposit Insurance Corporation, and the
Federal Home Loan Bank Board under the provisions of 12 CFR 217, 329, and 526
respectively. Title II of the Depository Institutions Deregulation and Monetary
Control Act of 1980 (P.L. 96-221) transferred the authority of the agencies to
establish maximum rates of interest payable on deposits to the Depository
Institutions Deregulation Committee. The maximum rates on time deposits in
denominations of $ 100,000 or more with maturities of 30-89 days were suspended
in June 1970; the maximum rates for such deposits maturing in 90 days or more
were suspended in May 1973. For information regarding previous interest rate
ceilings on all types of accounts, see earlier issues of the FEDERAL RESERVE
BULLETIN, the Federal Home Loan Bank Board Journal, and the Annual Report
of the Federal Deposit Insurance Corporation.
For deposits subject to variable ceiling rates and deposits not subject to interest rate ceilings see page A10.
7'/>
(6)
6/1/78
1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loans.
2. Federally insured commercial banks, savings and loan associations, cooperative banks, and mutual savings banks in Massachusetts and New Hampshire
were first permitted to offer negotiable order of withdrawal (NOW) accounts on
Jan. 1, 1974. Authorization to issue NOW accounts was extended to similar
institutions throughout New England on Feb. 27, 1976, in New York State on
Nov. 10,1978, New Jersey on Dec. 28,1979, and to similar institutions nationwide
effective Dec. 31, 1980. Effective January 5, 1983 the interest rate ceiling is
removed for NOW accounts with an initial balance and average maintenance
balance of $2,500.
3. For exceptions with respect to certain foreign time deposits see the
BULLETIN for October 1962 (p. 1279), August 1965 (p. 1084), and February 1968
(p. 167).
4. Effective Nov. 10, 1980, the minimum notice period for public unit accounts
at savings and loan associations was decreased to 14 days and the minimum
maturity period for time deposits at savings and loan associations in excess of
$100,000 was decreased to 14 days. Effective Oct. 30, 1980, the minimum maturity
or notice period for time deposits was decreased from 30 to 14 days at mutual
savings banks.
5. Effective Oct. 30, 1980, the minimum maturity or notice period for time
deposits was decreased from 30 to 14 days at commercial banks.
6. No separate account category.
7. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was
required for savings and loan associations, except in areas where mutual savings
banks permitted lower minimum denominations. This restriction was removed for
deposits maturing in less than 1 year, effective Nov. 1, 1973.
8. No minimum denomination. Until July 1, 1979, the minimum denomination
was $1,000 except for deposits representing funds contributed to an individual
retirement account (IRA) or a Keogh (H.R. 10) plan established pursuant to the
Internal Revenue Ccxle. The $1,000 minimum requirement was removed for such
accounts in December 1975 and November 1976 respectively.
(')
1/21/70
1/21/70
1/21/70
A10
1.16
DomesticNonfinancialStatistics • May 1983
Continued
TIME DEPOSITS SUBJECT TO VARIABLE CEILING RATES
91-day time deposits. Effective May 1, 1982, depository institutions were
authorized to offer time deposits that have a minimum denomination of $7,500 and
a maturity of 91 days. Effective January 5, 1983, the minimum denomination
required for this deposit is reduced to $2,500. The ceiling rate of interest on these
deposits is indexed to the discount rate (auction average) on most recently issued
91-day Treasury bills for thrift institutions and the discount rate minimum 25 basis
points for commercial banks. The rate differential ends 1 year from the effective
date of these instruments and is suspended at any time the Treasury bill discount
rate is 9 percent or below for four consecutive auctions. The maximum allowable
rates in April 1983 (in percent) for commercial banks and thrifts were as follows:
Apr. 5, 8.664; Apr. 12, 8.165; Apr. 19, 8.03; Apr. 26, 8.15.
Six-month money market time deposits. Effective June I, 1978, commercial
banks and thrift institutions were authorized to offer time deposits with a maturity
of exactly 26 weeks and a minimum denomination requirement of $10,000.
Effective January 5, 1983, the minimum denomination required for this deposit is
reduced to $2,5(K). The ceiling rate of interest on these deposits is indexed to the
discount rate (auction average) on most recently issued 26-week U.S. Treasury
bills. Interest on these certificates may not be compounded. Effective for all 6month money market certificates issued beginning Nov. 1, 1981, depository
institutions may pay rates of interest on these deposits indexed to the higher of (1)
the rate for 26-week Treasury bills established immediately before the date of
deposit (bill rate) or (2) the average of the four rates for 26-week Treasury bills
established for the 4 weeks immediately before the date of deposit (4-week
average bill rate). Ceilings are determined as follows:
Bill rate or 4-week
average bill rate
7.50 percent or below
Above 7.50 percent
7.25 percent or below
Above 7.25 percent, but below
8.50 percent
8.50 percent or above, but below
8.75 percent
8.75 percent or above
Commercial
bank ceiling
7.75 percent
'/» of 1 percentage point plus the higher of
the bill rate or 4-week average bill rate
Thrift ceiling
7.75 percent
l
/i of 1 percentage point plus the higher of
the bill rate or 4-week average bill rate
9 percent
'A of 1 percentage point plus the higher of
the bill rate or 4-week average bill rate
12-month all savers certificates. Effective Oct. 1, 1981, depository institutions
are authorized to issue all savers certificates (ASCs) with a 1-year maturity and an
annual investment yield equal to 70 percent of the average investment yield for 52week U.S. Treasury bills as determined by the auction of 52-week Treasury bills
held immediately before the calendar week in which the certificate is issued. A
maximum lifetime exclusion of $1,000 ($2,000 on a joint return) from gross income
is generally authorized for interest income from ASCs. The annual investment
yield for ASCs issued in December 1982 (in percent) was as follows: Dec. 26, 6.26.
V/2-year to less than 2'/2-year time deposits. Effective Aug. 1, 1981, commercial
banks are authorized to pay interest on any variable ceiling nonnegotiable time
deposit with an original maturity of 2[/i years to less than 4 years at a rate not to
exceed 'A of 1 percent below the average 2'/2-year yield for U.S. Treasury
securities as determined and announced by the Treasury Department immediately
before the date of deposit. Effective May 1, 1982, the maximum maturity for this
category of deposits was reduced to less than 3'/2 years. Effective Apr. 1, 1983, the
maximum maturity for this category of deposits was reduced to less than 2l/2 years
and the minimum maturity was reduced to l'/2 years. Thrift institutions may pay
interest on these certificates at a rate not to exceed the average 1 '/2-year yield for
Treasury securities as determined and announced by the Treasury Department
immediately before the date of deposit. If the announced average 1 '/2-year yield
for Treasury securities is less than 9.50 percent, commercial banks may pay 9.25
percent and thrift institutions 9.50 percent for these deposits. These deposits have
no required minimum denomination, and interest may be compounded on them.
The ceiling rates of interest at which they may be offered vary biweekly. The
maximum allowable rates in April 1983 (in percent) for commercial banks were as
follows: Apr. 1, 9.40; Apr. 12, 9.25; Apr. 26, 9.25; and for thrift institutions:
Apr. 1, 9.65; Apr. 12, 9.50; Apr. 26, 9.50.
Between Jan. 1, 1980, and Aug. 1, 1981, commercial banks and thrift institutions were authorized to offer variable ceiling nonnegotiable time deposits with no
required minimum denomination and with maturities of 2xh years or more.
Effective Jan. 1, 1980, the maximum rate for commercial banks was 3/4 percentage
point below the average yield on 2'A-year U.S. Treasury securities; the ceiling rate
for thrift institutions was 'A percentage point higher than that for commercial
banks. Effective Mar. 1, 1980, a temporary ceiling of ll 3 /4 percent was placed on
these accounts at commercial banks and 12 percent on these accounts at savings
and loans. Effective June 2, 1980, the ceiling rates for these deposits at
commercial banks and savings and loans were increased V2 percentage point. The
temporary ceiling was retained, and a minimum ceiling of 9.25 percent for
commercial banks and 9.50 percent for thrift institutions was established.
The maximum rates in April 1983 for commercial banks based on the bill rate were
as follows: Apr. 5, 8.955; Apr. 12, 8.498; Apr. 19, 8.45; Apr. 26, 8.47, and based
on the 4-week average bill rate were as follows: Apr. 5, 8.802; Apr. 12, 8.798;
Apr. 19, 8.71; Apr. 26, 8.59. The maximum allowable rates in April 1983 for thrifts
based on the bill rate were as follows: Apr. 5, 9.000; Apr. 12, 8.748; Apr. 19, 8.70;
Apr. 26, 8.72; and based on the 4-week average bill rate were as follows: Apr. 5,
9.000; Apr. 12, 9.000; Apr. 19, 8.964; Apr. 26, 8.843.
TIME DEPOSITS NOT SUBJECT T O INTEREST RATE CEILINGS
Money market deposit account. Effective Dec. 14, 1982, depository institutions
are authorized to offer a new account with a required initial balance of $2,500 and
an average maintenance balance of $2,500 not subject to interest rate restrictions.
No minimum maturity period is required for this account, but depository
institutions must reserve the right to require seven days' notice before withdrawals. When the average balance is less than $2,500, the account is subject to the
maximum ceiling rate of interest for N O W accounts; compliance with the average
balance requirement may be determined over a period of one month. Depository
institutions may not guarantee a rate of interest for this account for a period longer
than one month or condition the payment of a rate on a requirement that the funds
remain on deposit for longer than one month. No more than six preauthorized,
automatic, or other third-party transfers are permitted per month, of which no
more than three can be checks. Telephone transfers to third parties or to another
account of the same depositor are regarded as preauthorized transfers.
IRAs and Keogh (H.R. 10) plans (18 months or more). Effective Dec. 1, 1981,
depository institutions are authorized to offer time deposits not subject to interest
rate ceilings when the funds are deposited to the credit of, or in which the entire
beneficial interest is held by, an individual pursuant to an IRA agreement or
Keogh (H.R. 10) plan. Such time deposits must have a minimum maturity of 18
months, and additions may be made to the time deposit at any time before its
maturity without extending the maturity of all or a portion of the balance of the
account.
Time deposits of 7 to 31 days. Effective Sept. 1, 1982, depository institutions
were authorized to issue nonnegotiable time deposits of $20,000 or more with a
maturity or required notice period of 7 to 31 days. The maximum rate of interest
payable by thrift institutions was the rate established and announced (auction
average on a discount basis) for U.S. Treasury bills with maturities of 91 days at
the auction held immediately before the date of deposit or renewal ("bill rate").
Commercial banks could pay the bill rate minus 25 basis points. The interest rate
ceiling was suspended when the bill rate is 9 percent or below for the four most
recent auctions held before the date of deposit or renewal. Effective January 5,
1983, the minimum denomination required for this deposit was reduced to $2,500
and the interest rate ceiling was removed.
Time deposits of 2]/2 years or more. Effective May 1, 1982, depository
institutions were authorized to offer negotiable or nonnegotiable time deposits
with a minimum original maturity of 3!/2 years or more that are not subject to
interest rate ceilings. Such time deposits have no minimum denomination, but
must be made available in a $500 denomination. Additional deposits may be made
to the account during the first year without extending its maturity. Effective
Apr. 1, 1983, the minimum maturity period for this category of deposits was
reduced to 2V2 years.
Policy Instruments
1.17
All
FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1983
1982
Type of transaction
1981
1980
1982
Sept.
Oct.
Nov.
Mar.
Feb.
Jan.
Dec.
U . S . GOVERNMENT SECURITIES
Outright transactions (excluding matched
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
7,668
7,331
0
3,389
13,899
6,746
0
1,816
17,067
8,369
0
3,000
425
674
0
400
774
0
0
0
2,552
0
0
0
1,897
731
0
200
0
1,983
0
900
1,456
934
0
300
1,259
0
0
0
912
0
12,427
-18,251
0
317
23
13,794
-12,869
0
312
0
17,295
-14,164
0
0
0
733
-650
0
0
0
623
0
0
88
0
2,819
-1,924
0
0
0
906
-943
0
0
0
558
-544
0
0
0
4,564
-2,688
0
0
0
1,198
-900
0
10
11
12
13
I to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
2,138
0
-8,909
13,412
1,702
0
-10,299
10,117
1,797
0
-14,524
11,804
0
0
-733
650
0
0
-623
0
485
0
-2,204
1,515
0
0
-906
943
0
0
-553
544
0
0
-4,564
1,599
0
0
-1,198
900
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
703
0
-3,092
2,970
393
0
-3,495
1,500
388
0
-2,172
2,128
0
0
0
0
0
0
0
0
194
0
-616
250
0
0
0
0
0
0
-5
0
0
0
229
650
0
0
0
0
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
811
0
-426
1,869
379
0
0
1,253
307
0
-601
234
0
0
0
0
0
0
0
0
132
0
0
159
0
0
0
0
0
0
0
0
0
0
-229
439
0
0
0
0
22
23
24
All maturities
Gross purchases
Gross sales
Redemptions
12,232
7,331
3,389
16,690
6,769
1,816
19,870
8,369
3,000
425
674
400
774
0
0
3,452
0
0
1,897
731
200
0
1,983
900
1,456
934
300
1,259
0
0
25
26
Matched transactions
Gross sales
Gross purchases
674,000
675,496
589,312
589,647
543,804
543,173
51,983
51,554
45,655
46,370
39,579
41,724
72,123
69,088
59,398
59,043
35,234
38,204
47,892
47,724
27
28
Repurchase agreements
Gross purchases
Gross sales
113,902
113,040
79,920
78,733
130,774
130,286
9,649
7,035
5,618
9,420
4,161
4,161
15,229
11,525
6,747
10,451
6,697
6,697
3,526
3,526
3,869
9,626
8,358
1,535
-2,313
5,596
1,636
-6,943
3,192
1,090
668
0
145
494
0
108
0
0
189
0
0
5
0
0
6
0
0
*
0
0
6
0
0
9
0
0
5
0
0
8
28,895
28,863
13,320
13,576
18,957
18,638
1,997
1,225
1,776
2,778
739
739
2,566
1,978
452
1,040
276
276
379
379
555
130
130
767
-1,008
*
582
-596
-5
-8
73
-582
1,285
248
-813
0
1,480
-1,480
0
0
4,497
9,175
9,773
2,550
-4,134
5,596
3,697
-9,019
3,187
1,082
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
30
31
32
Outright transactions
Gross purchases
Gross sales
Redemptions
33
34
Repurchase agreements
Gross purchases
Gross sales
35 Net change in federal agency obligations
BANKERS ACCEPTANCES
36 Repurchase agreements, net
37 Total net change in System Open Market
Account
NOTE: Sales, redemptions, and negative figures reduce holdings of the System
Open Market Account; all other figures increase such holdings. Details may not
add to totals because of rounding.
A12
1.18
DomesticNonfinancialStatistics • May 1983
FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements
Millions o f dollars
End of month
Wednesday
1983
Mar. 30
Apr. 13
Apr. 6
Apr. 27
Apr. 20
Apr.
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4
To depository institutions
5
Other
Acceptances
6
Held under repurchase agreements . . . .
Federal agency obligations
7
Bought outright
8
Held under repurchase agreements . . . .
U.S. government securities
Bought outright
9
Bills
0
Notes
1
Bonds
2
Total 1
Held under repurchase agreements . . . .
14 Total U.S. government securities
15 Total loans and securities .
11,138
4,618
479
11,138
4,618
461
11,137
4,618
453
11,137
4,618
448
11,135
4,618
444
11,139
4,618
508
1,985
887
519
1,263
4,073
1,155
0
0
0
0
0
11,138
4,618
477
0
11,135
4,618
452
0
704
8,923
8,915
8,908
248
54,379
62,187
18,995
135,561
55,469
62,187
18,995
136,651
138,899
56,194
62,187
18,995
137,376
3,732
141,108
135,561
136,651
56,682
62,187
18,995
137,864
3,686
141,550
144,846
149,070
154,461
145,639
148,374
152,258
10,186
552
8,959
551
4,207
552
6,584
552
6,354
552
8,915
8,915
8,908
8,908
53,478
62,187
18,995
134,660
55,609
62,187
18,995
136,791
54,237
62,187
18,995
135,419
57,717
62,187
18,995
138,899
135,419
0
0
134,660
145,560
0
0
136,791
146,593
8,818
0
0
0
0
0
0
0
0
10,121
552
5,017
3,816
4,971
3,757
4,975
3,827
4,978
3,962
4,983
4,232
4,988
5,421
4,962
3,673
4,957
5,223
182,211
180,090
184,951
189,383
177,072
180,378
185,549
141,439
142,904
143,404
142,906
142,841
139,060
141,497
142,497
23,793
20,513
3,523
24,325
4,596
26,201
250
568
22,408
4,393
194
522
551
617
6,803
194
665
22,468
2,856
352
477
23,419
3,572
425
533
23,193
6,015
322
791
26,727
27,517
24,799
29,758
33,863
26,153
27,949
30,321
7,075
1,699
7,027
1,721
7,123
1,695
7,469
1,748
7,685
1,906
6,871
1,709
6,098
1,752
7,478
2,069
176,940
20 Total assets.
552
9,682
552
179,998
16 Cash items in process of collection..
17 Bank premises
Other assets
18
Denominated in foreign currencies 2
19
All other 3
179,169
177,021
181,881
186,295
173,793
177,296
182,365
1,393
1,359
306
1,394
1,359
289
1,395
1,359
315
1,398
1,359
313
1,407
1,359
322
1,359
532
1,393
1,359
330
1,407
1,359
418
179,998
182,211
180,090
184,951
189,383
177,072
180,378
185,549
109,450
111,114
111,719
111,589
110,748
112,208
112,120
109,843
LIABILITIES
21 Federal Reserve notes
Deposits
22
Depository institutions
23
U.S. Treasury—General account.
24
Foreign—Official accounts
25
Other
26 Total deposits.
27 Deferred availability cash items
28 Other liabilities and accrued dividends 4 .
29 Total liabilities .
2,116
212
220
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts .
33 Total liabilities and capital accounts
34 MEMO: Marketable U.S. government securities held in
custody for foreign and international account
1,
Federal Reserve note statement
35 Federal Reserve notes outstanding (issued to bank)
36
LESS: Held by bank 5
37
Federal Reserve notes, net
Collateral for Federal Reserve notes
38
Gold certificate account
39
Special drawing rights certificate account
40
Other eligible assets
41
U.S. government and agency securities
159,624
18,185
141,439
159,901
16,997
142,904
160,465
17,061
143,404
160,915
18,009
142,906
161,329
18,488
142,841
159,741
20,681
139,060
159,568
18,130
141,438
161,327
18,830
142,497
11,138
4,618
0
125,683
11,138
4,618
0
127,148
11,137
4,618
0
127,649
11,137
4,618
0
127,151
11,135
4,618
0
127,088
11,139
4,618
0
123,303
11,138
4,618
0
125,682
11,135
4,618
0
126,744
42
141,439
142,904
143,404
142,906
142,841
139,060
141,438
142,497
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Includes U.S. government securities held under repurchase agreement
against receipt of foreign currencies and foreign currencies warehoused for the
U.S. Treasury. Assets shown in this line are revalued monthly at market exchange
rates.
3. Includes special investment account at Chicago of Treasury bills maturing
within 90 days.
4. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
5. Beginning September 1980, Federal Reserve notes held by the Reserve Bank
are exempt from the collateral requirement.
Reserve Banks; Banking Aggregates
1.19
FEDERAL RESERVE BANKS
A13
Maturity Distribution of Loan and Security Holdings
Millions of dollars
Wednesday
1983
Type and maturity groupings
Mar. 30
End of month
1983
Apr. 13
Apr. 6
Apr. 27
Apr. 20
Mar. 31
Feb. 28
Apr. 29
1 Loans—Total
2 Within 15 days
3
16 days to 90 days
4 91 days to 1 year
1,985
1,968
17
0
887
849
38
0
519
491
28
0
1,263
1,249
14
0
4,073
4,040
33
0
1,155
1,141
14
0
2,808
2,782
26
0
848
805
43
0
5 Acceptances—Total
6 Within 15 days
7
16 days to 90 days
8 91 days to 1 year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
285
285
0
0
0
0
0
0
0
0
0
0
704
704
0
0
9 U.S. government securities—Total
10 Within 15 days 1
11 16 days to 90 days
12 91 days to 1 year
13 Over 1 year to 5 years
14 Over 5 years to 10 years
15 Over 10 years
134,660
4,596
26,664
41,519
32,128
12,970
16,783
136,791
6,207
27,060
41,941
31,830
12,970
16,783
135,419
4,221
27,474
42,141
31,830
12,970
16,783
138,899
5,198
29,732
42,386
31,972
12,828
16,783
141,108
6,694
29,095
43,736
31,972
12,828
16,783
135,561
3,916
28,249
40,865
32,778
12,970
16,783
136,651
3,525
26,664
44,879
31,830
12,970
16,783
141,550
4,947
30,724
44,296
31,972
12,828
16,783
16 Federal agency obligations—Total
17 Within 15 days1
18 16 days to 90 days
19 91 days to 1 year
20 Over 1 year to 5 years
21 Over 5 years to 10 years
22 Over 10 years
8,915
309
508
1,862
4,614
1,104
518
8,915
212
614
1,853
4,614
1,104
518
8,908
25
675
1,829
4,732
1,129
518
8,908
110
564
1,830
4,756
1,130
518
8,995
323
499
2,026
4,499
1,130
518
8,923
225
602
1,963
4,543
1,072
518
8,915
309
508
1,862
4,614
1,104
518
9,156
484
499
2,026
4,499
1,130
518
1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.
A14
1.20
DomesticNonfinancialStatistics • May 1983
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS A N D MONETARY BASE
Billions of dollars, averages of daily figures
1982
Item
1978
Dec.
1979
Dec.
1980
Dec.
1983
1981
Dec.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS'
1 Total reserves2
2 Nonborrowed reserves
3 Required r e s e r v e s . . . .
4 Monetary base 3
37.93
31.96
32.59
132.2
32.76
33.91
142.8
39.66
39.45
39.53
173.2
34.54
35.71
154.9
38.72
39.27
172.1
39.45
39.53
173.2
39.79
40.01
174.3
40.15
40.28
175.6
39.59
39.57
176.3
39.76
39.91
178.0
40.21
40.57
180.2
40.30
40.83
181.3
Not seasonally adjusted
5 Total reserves2
33.33
37.24
37.24
40.00
39.36
40.00
40.68
41.56
42.23
40.23
40.23
41.00
6 Nonborrowed reserves
7 Required reserves
8 Monetary base 3
32.46
33.10
134.7
35.55
36.72
158.2
35.55
36.72
158.2
39.52
39.59
173.2
38.42
38.97
171.7
39.52
39.59
173.2
40.06
40.28
175.4
40.93
41.06
178.9
41.69
41.67
177.7
39.64
39.79
175.9
39.44
39.80
177.7
40.05
40.58
100.4
41.68
40.66
40.66
40.59
39.96
40.59
41.20
41.85
41.86
39.80
38.04
38.66
40.81
41.45
144.5
38.97
40.15
162.5
38.97
40.15
162.5
40.11
40.18
173.8
39.03
39.58
172.4
40.11
40.18
173.8
40.58
40.80
176.0
41.22
41.35
179.3
41.33
41.32
177.9
39.22
39.36
176.0
37.24
37.60
175.9
37.65
38.18
178.5
NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 4
9 Total reserves2
10 Nonborrowed reserves
11 Required reserves
12 Monetary base 3
1. Reserve aggregates include required reserves of member banks and Edge
Act corporations and other depository institutions. Discontinuities associated
with the implementation of the Monetary Control Act, the inclusion of Edge Act
corporation reserves, and other changes in Regulation D have been removed.
Beginning with the week ended December 23, 1981, reserve aggregates have been
reduced by shifts of reservable liabilities to international banking facilities (IBFs).
On the basis of reports of liabilities transferred to IBFs by U.S. commercial banks
and U.S. agencies and branches of foreign banks, it is estimated that required
reserves were lowered on average $10 millon to $20 million in December 1981 and
$40 million to $70 million in January 1982.
2. Reserve balances with Federal Reserve Banks (which exclude required
clearing balances) plus vault cash at institutions with required reserve balances
plus vault cash equal to required reserves at other institutions.
3. Includes reserve balances and required clearing balances at Federal Reserve
Banks in the current week plus vault cash held two weeks earlier used to satisfy
reserve requirements at all depository institutions plus currency outside the U.S.
Treasury, Federal Reserve Banks, the vaults of depository institutions, and
surplus vault cash at depository institutions.
4. Reserves of depository institutions series reflect actual reserve requirement
percentages with no adjustments to eliminate the effect of changes in Regulation D
including changes associated with the implementation of the Monetary Control
Act. Includes required reserves of member banks and Edge Act corporations and
beginning November 13, 1980, other depository institutions. Under the transition-
al phase-in program of the Monetary Control Act of 1980, the net changes in
required reserves of depository institutions have been as follows: Effective Nov.
13, 1980, a reduction of $2.9 billion; Feb. 12, 1981, an increase of $245 million;
Mar. 12, 1981, an increase of $75 million; May 14, 1981, an increase of $245
million; Sept. 3, 1981, a reduction of $1.1 billion; Nov. 12, 1981, an increase of
$210 million; Jan. 14, 1982, a reduction of $60 million; Feb. 11, 1982 an increase of
$170 million; Mar. 4, 1982, an estimated reduction of $2.0 billion; May 13, 1982, an
estimated increase of $150 million; Aug. 12, 1982 an estimated increase of $140
million; and Sept. 2, 1982, an estimated reduction of $1.2 billion; Oct. 28, 1982 an
estimated reduction of $100 million; Dec. 23, 1982 an estimated reduction of $800
million; and Mar. 3, 1983 an estimated reduction of $2.1 billion. Beginning with
the week ended December 23, 1981, reserve aggregates have been reduced by
shifts of reservable liabilities to IBFs. On the basis of reports of liabilities
transferred to IBFs by U.S. commercial banks and U.S. agencies and branches of
foreign banks, it is estimated that required reserves were lowered on average by
$60 million to $90 million in December 1981 and $180 million to $230 million in
January 1982, mostly reflecting a reduction in reservable Eurocurrency transactions.
NOTE. Latest monthly and weekly figures are available from the Board's
H.3(502) statistical release. Back data and estimates of the impact on required
reserves and changes in reserve requirements are available from the Banking
Section, Division of Research and Statistics, Board of Governors of the Federal
Reserve System, Washington. D.C. 20551.
Monetary Aggregates
1.21
A15
MONEY STOCK MEASURES A N D COMPONENTS
Billions of dollars, averages of daily figures
1983
1982
1979
Dec.
Item
1980
Dec.
1981
Dec.
1982
Dec.
Nov.
Dec.
Jan.
Feb.
Mar.
Seasonally adjusted
MEASURES 1
389.0
1,497.5
1,758.4
2,131.8
1 Ml
2 M2
3 M3
4 L
!
414.1
1,630.3
1,936.7
2,343.6
440.6
1,794.9
2,167.9
2,622.0
478.2
1,959.5
2,377.6'
2,899.1
474.0
1,945.0
2,370.2
2,883.1
478.2
1,959.5
2,377.6'
2,899.1
482.1
2,008.0'
2,401.5r
n.a.
491.1'
2,048.0'
2,427.8'
n.a.
497.5
2,065.8
2,442.8
n.a.
106.5
3.7
262.0
17.0
423.1
635.9
222.2
116.2
4.1
266.8
26.9
400.7
731.7
258.9
123.2
4.5
236.4
76.6
344.4
828.6
302.6
132.8
4.2
239.8
101.3
358.7'
859.8'
333.8
131.9
4.4
237.6
132.8
4.2
239.8
104.5'
358.7
859.8r
333.8
134.2
4.1
239.4
112.5'
332.5
798.1
310.6
135.6
4.3
238.7
112.5'
322.1
756.1'
297.9'
135.6
4.5
240.0
116.0
318.8
734.9
296.2
SELECTED COMPONENTS
5
6
7
8
9
10
11
Currency
Traveler's checks 3
Demand deposits
Other checkable deposits 4
Savings deposits5
Small-denomination time deposits 6
Large-denomination time deposits 7
100.3'
366.4
874.9
340.4
Not seasonally adjusted
MEASURES
1?
13
14
15
1
398.8
1,502.1
1,766.1
2,138.9
Ml
M2
M3
V-
424.7
1,635.0
1,944.9
2,350.8
452.1
1,799.6
2,175.9
2,629.7
491.0
1,964.5
2,385.3
2,907.0
479.0
1,943.6
2,369.2
2,882.0
491.0
1,964.5
2,385.3
2,907.0
489.6
2,016.4
2,413.2
n.a.
480.6
2,040.0
2,424.2'
n.a.
489.1
2,061.9
2,441.5
n.a.
108.2
3.5
270.1
17.0
21.2
420.7
633.1
118.3
3.9
275.2
27.2
28.4
398.3
728.3
125.4
4.3
244.0
78.4
36.1
342.1
824.1
135.2
4.0
247.7
81.0
44.3
356.2'
854.5
132.7
4.2
240.6
79.2
45.2
363.4
871.5
135.2
4.0
247.7
81.0
44.3
356.2'
854.4
133.2
3.9
245.1
82.4'
47.3
332.1
799.3
133.7
4.1
232.8
83.6
48.8'
320.9
759.5
135.4
4.3
235.1
86.6
48.8
319.4
738.8
33.4
9.5
226.0
61.4
14.9
262.4
150.9
36.0
305.9
182.2
47.6
336.5
191.1
49.9
340.8
182.2
47.6
336.5
166.7
46.1
314.2
159.4
45.2
302.6'
153.5
43.5
298.9
SELECTED COMPONENTS
16
17
18
19
20
21
22
Currency
Traveler's checks 3
Demand deposits
Other checkable deposits 4
Overnight RPs and Eurodollars 8
Savings deposits5
Small-denomination time deposits 6
Money market mutual funds
23 General purpose and broker/dealer
24 Institution only
25 Large-denomination time deposits 7
1. Composition of the money stock measures is as follows:
Ml: Averages of daily figures for (1) currency outside the Treasury, Federal
Reserve Banks, and the vaults of commercial banks; (2) traveler's checks of
nonbank issuers; (3) demand deposits at all commercial banks other than those
due to domestic banks, the U.S. government, and foreign banks and official
institutions less cash items in the process of collection and Federal Reserve float ;
and (4) negotiable order of withdrawal (NOW) and automatic transfer service
(ATS) accounts at banks and thrift institutions, credit union share draft (CUSD)
accounts, and demand deposits at mutual savings banks.
M2: Ml plus savings and small-denomination time deposits at all depository
institutions, overnight repurchase agreements at commercial banks, overnight
Eurodollars held by U.S. residents other than banks at Caribbean branches of
member banks and balances of money market mutual funds (general purpose and
broker/dealer).
M3: M2 plus large-denomination time deposits at all depository institutions,
term RPs at commercial banks and savings and loan associations, and balances of
institution-only money market mutual funds.
2. L: M3 plus other liquid assets such as term Eurodollars held by U.S.
residents other than banks, bankers acceptances, commercial paper, Treasury
bills and other liquid Treasury securities, and U.S. savings bonds.
3. Outstanding amount of U.S. dollar-denominated traveler's checks of nonbank issuers.
4. Includes ATS and NOW balances at all institutions, credit union share draft
balances, and demand deposits at mutual savings banks.
5. Excludes NOW and ATS accounts at commercial banks and thrift institutions and CUSDs at credit unions.
6. Issued in amounts of less than $100,000 and includes retail RPs.
7. Issued in amounts of $100,000 or more and are net of the holdings of
domestic banks, thrift institutions, the U.S. government, money market mutual
funds, and foreign banks and official institutions.
8. Overnight (and continuing contract) RPs are those issued by commercial
banks to other than depository institutions and money market mutual funds
(general purpose and broker/dealer), and overnight Eurodollars are those issued
by Caribbean branches of member banks to U.S. residents other than depository
institutions and money market mutual funds (general purpose and broker/dealer).
NOTE: Latest monthly and weekly figures are available from the Board's H.6
(508) release. Back data are available from the Banking Section, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
A16
1.22
DomesticNonfinancialStatistics • May 1983
BANK DEBITS A N D DEPOSIT TURNOVER
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1982
Bank group, or type of customer
1980'
19811
1983
19821
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Seasonally adjusted
DEBITS TO
1
2
3
4
5
Demand deposits2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 3
Savings deposits4
6
7
8
9
10
Demand deposits2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 3
Savings deposits4
62,757.8
25,156.1
37,601.7
159.3
670.0
80,858.7
33,891.9
46,966.9
743.4
672.7
90,914.4
37,932.9
52,981.6
1,036.2
721.4
97,097.0
42,077.9
55,019.1
1,109.4
637.0
95,475.9
38,971.6
56,504.4
1,224.6
697.1
97,748.5
42,104.4
55,644.1
1,448.1
889.3
103,333.1
46,353.0
56,980.1
1,262.3
904.3
102,743.5
45,133.2
57,610.3
1,286.4
827.9
102,206.1
44,327.4
57,878.7
1,369.4
803.2
198.7
803.7
132.2
9.7
3.6
285.8
1,105.1
186.2
14.0
4.1
324.2
1,287.6
211.1
14.5
4.5
343.0
1,298.7
219.5
14.7
4.0
333.8
1,263.7
221.4
15.6
4.3
342.6
1,381.2
218.3
18.4
4.7
361.1
1,462.3
223.9
15.8
6.0
361.3
1,462.5
227.2
15.1
5.8
356.1
1,437.4
225.9
15.6
5.7
DEPOSIT TURNOVER
Not seasonally adjusted
DEBITS TO
11
12
13
14
15
16
Demand deposits2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 3
MMDA5
Savings deposits 4
17
18
19
20
21
22
Demand deposits2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 3
MMDA5
Savings deposits 4
63,124.4
25,243.1
37,881.3
158.0
0
669.8
81,197.9
34,032.0
47,165.9
737.6
0
672.9
91,031.9
38,001.0
53,030.9
1,027.1
0
720.0
93,543.3
39,657.6
53,885.7
1,098.0
0
672.7
91,838.3
36,893.5
54,944.8
1,115.0
0
663.3
107,454.9
47,576.3
59,878.6
1,411.9
0
878.0
101,566.1
45,657.2
55,908.8
1,525.5
278.4
980.4
92,654.1
40,937.3
51,716.8
1,198.7
324.7
754.3
109,166.3
47,496.6
61,669.7
1,398.4
454.9
820.4
202.3
814.8
134.8
9.7
0
3.6
286.1
1,114.2
186.2
14.0
0
4.1
325.0
1,295.7
211.5
14.3
0
4.5
327.8
1,220.8
213.1
14.5
0
4.2
319.3
1,198.6
213.9
14.1
0
4.1
367.2
1,540.7
228.8
17.5
0
4.7
346.1
1,368.1
215.0
18.6
2.4
6.6
334.8
1,366.7
209.5
14.4
2.0
5.3
391.8
1,561.1
248.5
16.2
2.4
5.8
DEPOSIT TURNOVER
1. Annual averages of monthly figures.
2. Represents accounts of individuals, partnerships, and corporations and of
states and political subdivisions.
3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts authorized for automatic transfer to demand deposits (ATS). ATS data
availability starts with December 1978.
4. Excludes ATS and NOW accounts, MMDA and special club accounts, such
as Christmas and vacation clubs.
5. Money Market Deposit Accounts.
NOTE. Historical data for demand deposits are available back to 1970 estimated
in part from the debits series for 233 SMSA's that were available through June
1977. Historical data for ATS-NOW and savings deposits are available back to
July 1977. Back data are available on request from the Banking Section, Division
of Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Commercial Banks
1.23
LOANS A N D SECURITIES
A17
All Commercial Banks'
Billions of dollars; averages of Wednesday figures
1982
1981
1983
1983
1982
1981
Category
Dec. 2
Nov.
Dec.
Jan. 3
Feb.
Mar.
Dec. 2
2 U.S. Treasury securities
3 Other securities
4 Total loans and leases4
5 Commercial and industrial
loans
6 Real estate loans
7 Loans to individuals
8 Security loans
9 Loans to nonbank financial
institutions
10 Agricultural loans
11 Lease financing receivables....
12 All other loans
Dec.
Jan. 3
Feb.
Mar.
Not seasonally adjusted
Seasonally adjusted
1 Total loans and securities4
Nov.
1,316.3
1,398.5
1,412.1
1,428.2
1,436.5
1,450.2
1,326.1
1,405.4
1,422.5
1,430.5
1,432.2
1,445.0
111.0
231.4
973.9
126.4
235.8
1,036.4
130.9
239.1
1,042.0
139.8
243.3
1,045.1
144.5
243.2
1,048.8
151.0
242.8
1,056.3
111.4
232.8
981.8
125.5
236.3
1,043.5
131.5
240.6
1,050.4
139.3
243.5
1,047.7
145.1
242.6
1,044.4
153.2
242.3
1,049.5
358.0
285.7
185.1
21.9
392.0
301.6
190.3
23.4
392.4
303.2
191.8
24.7
395.2
305.3
192.6
22.7
394.9
307.6
192.9
22.2
396.2
309.5
194.8
22.6
360.1
286.8
186.4
22.7
393.8
302.8
191.5
23.9
394.7
304.1
193.1
25.5
394.2
305.9
193.2
22.9
393.4
307.3
192.3
21.5
395.1
308.6
193.0
22.0
30.2
33.0
12.7
47.2
32.2
36.3
13.1
47.5
31.1
36.3
13.1
49.5
31.7
36.5
13.3
47.6
31.6
36.8
13.3
49.4
32.0
38.0
13.1
50.1
31.2
33.0
12.7
49.2
32.6
36.5
13.1
49.3
32.1
36.3
13.1
51.5
31.9
36.3
13.3
50.2
31.7
36.3
13.3
48.7
31.6
37.2
13.1
48.9
1,319.1
1,401.5
1,415.0
1,431.2
1,439.4
1,453.1
1,328.9
1,408.3
1,425.4
1,433.5
1,435.1
1,448.0
976.7
2.8
1,039.3
2.9
1,045.0
2.9
1,048.0
3.0
1,051.7
3.0
1,059.3
3.0
984.7
2.8
1,046.4
2.9
1,053.3
2.9
1,050.7
3.0
1,047.4
3.0
1,052.5
3.0
360.2
394.3
394.6
397.5
397.2
398.6
362.3
396.1
396.9
396.5
395.8
397.4
2.2
8.9
2.3
8.4
2.3
8.5
2.3
8.8
2.3
8.2
2.4
8.9
2.2
9.8
2.3
8.7
2.3
9.5
2.3
9.2
2.3
8.4
2.4
8.5
349.1
334.9
14.2
19.0
383.6
371.5
12.1
14.0
383.8
373.5
10.3
13.5
386.4
374.1
12.3
13.7
386.7
374.5
12.2
14.3
387.3
375.0
12.3
14.9
350.3
334.3
16.1
20.0
385.1
372.6
12.6
14.1
385.2
372.7
12.4
14.5
384.9
372.7
12.2
14.3
385.1
372.8
12.3
14.1
386.6
374.4
12.2
14.6
MEMO:
13 Total loans and securities plus
loans sold4'5
14 Total loans plus loans sold4-5 . . . .
15 Total loans sold to affiliates4 5 . . . .
16 Commercial and industrial loans
plus loans sold5
17 Commercial and industrial
loans sold5
18 Acceptances held
19 Other commercial and industrial loans
20
To U.S. addressees 6
21
To non-U.S. addressees
22 Loans to foreign banks
1. Includes domestically chartered banks; U.S. branches and agencies of
foreign banks, New York investment companies majority owned by foreign
banks, and Edge Act corporations owned by domestically chartered and foreign
banks.
2. Beginning December 1981, shifts of foreign loans and securities from U.S.
banking offices to international banking facilities (IBFs) reduced the levels of
several items. Seasonally adjusted data that include adjustments for the amounts
shifted from domestic offices to IBFs are available in the Board's G.7 (407)
statistical release (available from Publications Services, Board of Governors of
the Federal Reserve System, Washington, D.C. 20551).
3. Due to loan reclassifications, several categories have breaks in series:
beginning Jan. 12, 1983, real estate loans increased $0.4 billion and loans to
individuals decreased $0.2 billion. As of Jan. 26, 1983, other securities increased
$0.2 billion and total loans and commercial and industrial loans decreased $0.2
billion. As of Feb. 2, 1983, real estate loans increased $0.5 billion and commercial
and industrial loans decreased $0.5 billion.
4. Excludes loans to commercial banks in the United States.
5. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
6. United States includes the 50 states and the District of Columbia.
NOTE. Data are prorated averages of Wednesday estimates for domestically
chartered banks, based on weekly reports of a sample of domestically chartered
banks and quarterly reports of all domestically chartered banks. For foreignrelated institutions, data are averages of month-end estimates based on weekly
reports from large agencies and branches and quarterly reports from all agencies,
branches, investment companies, and Edge Act corporations engaged in banking.
A18
1.24
DomesticNonfinancialStatistics • May 1983
MAJOR NONDEPOSIT F U N D S OF COMMERCIAL BANKS'
Monthly averages, billions of dollars
1980
1981'
Dec/
Dec.
1982'"
1983
Source
1
2
3
4
5
6
Total nondeposit funds
Seasonally adjusted 2
Not seasonally adjusted
Federal funds, RPs, and other borrowings
from nonbanks3
Seasonally adjusted
Not seasonally adjusted
Net balances due to foreign-related institutions, not seasonally adjusted
Loans sold to affiliates, not seasonally
adjusted4
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan/
Feb/
Mar.
118.6
120.6
96.0
97.5
89.7
91.2
85.0
86.7
81.7
85.4
78.4
80.8
80.6
82.8
86.7
88.7
82.1
83.5
72.3
73.8
75.6
76.5
76.5
77.2
107.5
109.5
111.5
113.0
119.0
120.5
119.3
121.0
120.2
123.9
121.6
124.0
126.1
128.3
129.1
131.1
127.3
128.8
131.6
133.1
134.6
135.5
135.4
136.1
8.4
-18.2
-32.2
-37.3
-41.3
-46.3
-48.0
-44.8
-48.1
-62.4
-62.0
-61.9
2.7
2.8
3.0
2.8
2.8
2.8
2.8
2.9
2.9
3.0
3.0
3.0
-14.7
37.5
22.8
-22.5
54.9
32.4
-29.2
57.7
28.5
-33.1
60.7
27.6
-34.5
65.2
30.8
-39.0
68.8
29.7
-40.3
69.6
29.4
-38.3
69.9
31.6
-39.8
72.4
32.6
-50.1
80.8
30.7
-50.5
78.9
28.4
-52.8
79.6
26.9
22.9
32.5
55.4
4.3
48.1
52.4
-2.9
50.2
47.3
-4.3
52.9
48.6
-6.9
53.8
46.9
-7.3
54.6
47.3
-7.8
54.1
46.4
-6.5
53.7
47.2
-8.3
54.9
46.6
-12.3
57.6
45.3
-11.5
56.1
44.6
-9.2
56.2
47.0
51.7
52.0
59.0
59.2
61.7
61.7
61.9
62.2
65.2
67.5
65.0
66.0
69.0
69.8
71.5
72.1
71.0
71.1
72.2
72.2
74.3
73.7
74.7
73.9
9.9
9.0
12.2
11.1
10.5
10.7
9.0
8.2
10.1
8.1
11.1
12.3
14.4
16.4
10.6
7.8
11.9
10.8
15.7
16.3
8.8
10.2
12.5
13.2
267.0
272.4
324.1
330.4
349.6
344.8
360.3
350.6
367.1
359.3
366.7
361.8
367.6
364.9
360.6
361.7
347.3
353.9
319.2
325.4
303.0
310.4
296.0
300.7
22.4
1.7
20.7
3.1
17.6
32.0
2.4
29.6
5.0
24.6
32.2
2.4
29.8
5.1
24.7
32.5
2.4
30.1
5.3
24.9
32.8
2.4
30.4
5.4
25.0
33.1
2.4
30.7
5.4
25.3
33.3
2.4
30.9
5.5
25.4
33.9
2.4
31.5
5.8
25.7
34 2
2.4
31.8
5.8
26.0
MEMO
7
8
9
10
11
12
13
14
15
16
17
18
Domestically chartered banks' net positions
with own foreign branches, not seasonally adjusted 5
Gross due from balances
Gross due to balances
Foreign-related institutions' net positions with
directly related institutions, not seasonally adjusted 6
Gross due from balances
Gross due to balances
Security RP borrowings
Seasonally adjusted'
Not seasonally adjusted
U.S. Treasury demand balances 8
Seasonally adjusted
Not seasonally adjusted
Time deposits, $100,000 or more 9
Seasonally adjusted
Not seasonally adjusted
I B F ADJUSTMENTS FOR SELECTED ITEMS
19
20
21
22
23
Item 5
Item 7
Item 10
10
1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks, New
York investment companies majority owned by foreign banks, and Edge Act
corporations owned by domestically chartered and foreign banks.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates.
Includes averages of Wednesday data for domestically chartered banks and
averages of current and previous month-end data for foreign-related institutions.
3. Other borrowings are borrowings on any instrument, such as a promissory
note or due bill, given for the purpose of borrowing money for the banking
business. This includes borrowings from Federal Reserve Banks and from foreign
banks, term federal funds, overdrawn due from bank balances, loan RPs, and
participations in pooled loans. Includes averages of daily figures for member
banks and averages of current and previous month-end data for foreign-related
institutions.
4. Loans initially booked by the bank and later sold to affiliates that are still
held by affiliates. Averages of Wednesday data.
5. Averages of daily figures for member and nonmember banks.
6. Averages of daily data.
7. Based on daily average data reported by 122 large banks.
8. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
9. Averages of Wednesday figures.
10. Estimated effects of shifts of foreign assets from U.S. banking offices to
international banking facilities (IBFs).
Banking
1.25
ASSETS A N D LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Institutions
A19
Last-Wednesday-of-Month Series
Billions of dollars except for number of banks
1983
1982
June
July
Aug.
Oct.
Sept.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 1
1
2
3
4
5
6
Loans and securities, excluding
interbank
Loans, excluding interbank
Commercial and industrial
Other
U.S. Treasury securities
Other securities
1,315.4
969.1
348.7
620.4
113.4
232.9
1,313.2
966.6
346.4
620.3
113.4
233.2
1,318.8
970.6
346.2
624.4
113.7
234.5
1,337.1
985.9
354.4
631.5
115.0
236.2
1,343.0
988.5
355.8
632.7
119.4
235.1
1.347.0
990.4
355.4
635.0
122.2
234.4
1,370.4
1,000.8
357.9
642.9
129.0
240.5
1,370.8
993.3
355.6
638.2
136.0
241.6
1,373.7
991.4
356.3
635.8
141.4
240.8
1,392.2
1,001.7
358.6
643.7
150.6
239.9
1,404.1
1,005.3
358.5
646.8
155.5
243.2
165.4
20.1
18.2
59.6
67.4
154.5
20.5
25.1
55.4
53.6
160.8
20.3
26.1
58.8
55.5
157.4
20.4
17.0
60.4
59.6
162.1
20.5
23.5
61.3
56.8
169.7
19.0
22.0
64.6
64.1
184.4
23.0
25.4
67.6
68.4
167.8
20.4
23.9
67.7
55.9
184.7
20.3
25.3
71.6
67.5
168.9
19.9
20.5
67.1
61.5
170.1
20.4
23.9
66.1
59.6
7
8
9
10
11
Cash assets, total
Currency and coin
Reserves with Federal Reserve Banks
Balances with depository institutions .
Cash items in process of collection . . .
12
Other assets 2
223.2
224.2
231.3
234.9
237.0
241.8
265.3
260.1
263.6
257.9
252.3
13
Total assets/total liabilities and capital . . .
1,704.0
1,692.0
1,710.9
1,729.3
1,742.1
1,758.6
1,820.1
1,798.7
1,822.0
1,818.9
1,826.4
14
15
16
17
Deposits
Demand
Savings
Time
1,284.8
345.2
228.9
710.7
1,266.4
314.4
227.1
724.8
1,279.1
315.5
229.5
734.1
1,290.7
323.0
230.9
736.8
1,300.2
326.5
238.2
735.4
1,316.9
338.1
244.9
733.9
1,361.8
363.9
296.4
701.5
1,340.6
324.0
361.5
655.1
1,368.3
337.9
395.2
635.2
1,374.2
333.4
419.2
621.6
1,368.0
329.2
426.9
611.9
18
19
20
Borrowings
Other liabilities
Residual (assets less liabilities)
189.7
96.6
133.0
195.4
99.1
131.1
196.0
103.9
131.9
202.8
103.4
132.5
203.7
106.2
132.0
198.1
109.3
134.3
215.1
109.2
133.9
221.6
106.4
130.1
218.0
106.0
129.6
211.3
103.5
130.0
224.0
102.3
132.1
7.5
14,736
8.0
14,752
5.9
14,770
17.0
14,785
11.7
14,797
2.4
14,782
10.7
14,787
17.1
14,780
7.0
14,812
9.6
14,819
17.8
14,823
1,374.3
1,023.7
386.7
637.0
116.2
234.4
1,371.3
1,020.8
384.4
636.4
115.7
234.8
1,376.6
1,024.7
384.5
640.2
115.8
236.1
1,397.3
1,042.4
395.0
647.4
117.2
237.7
1,401.7
1,042.3
393.7
648.6
122.7
236.7
1.413.7
1,052.1
398.9
653.2
125.7
235.9
1,429.8
1,054.9
396.5
658.4
132.8
242.1
1,427.5
1,044.8
393.0
652.4
139.5
243.2
1,429.8
1,042.3
392.9
650.0
145.1
242.4
1,451.3
1,054.5
396.5
658.6
155.3
241.5
1,461.0
1,055.9
394.1
661.8
160.3
244.8
180.3
20.2
19.6
72.2
68.4
169.3
20.5
26.5
67.8
54.6
176.2
20.4
27.5
71.8
56.5
173.7
20.4
18.4
74.2
60.6
178.7
20.5
25.0
75.3
57.8
181.2
19.0
23.4
74.4
64.3
200.7
23.0
26.8
81.4
69.4
183.7
20.4
25.3
81.1
56.9
200.5
20.3
26.7
84.9
68.6
185.5
19.9
22.0
81.0
62.6
186.3
20.4
25.4
79.8
60.7
MEMO:
21
22
U.S. Treasury note balances included in
borrowing
Number of banks
A L L COMMERCIAL BANKING
INSTITUTIONS 3
24
25
26
27
28
Loans and securities, excluding
interbank
Loans, excluding interbank
Commercial and industrial
Other
U.S. Treasury securities
Other securities
29
30
31
32
33
Cash assets, total
Currency and coin
Reserves with Federal Reserve Banks
Balances with depository institutions .
Cash items in process of collection . . .
34
Other assets 2
23
300.0
299.4
306.8
310.3
313.9
323.3
341.7
333.2
330.2
325.4
317.7
1,840.1
1,859.6
1,881.3
1,894.2
1,918.2
1,972.2
1,944.4
1,960.4
1,962.2
1,965.0
35
Total assets/total liabilities and capital . . .
1,854.7
36
37
38
39
Deposits
Demand
Savings
Time
1,325.8
357.4
229.1
739.3
1,307.3
326.8
227.4
753.1
1,321.7
327.7
229.7
764.3
1,335.5
335.1
231.1
769.2
1,345.2
338.9
238.5
767.8
1.358.1
344.9
245.1
768.0
1,409.7
376.2
296.7
736.7
1,385.4
335.9
361.9
687.7
1,412.6
350.2
395.6
666.8
1,419.5
345.7
419.7
654.1
1,411.0
341.1
427.3
642.6
40
41
42
Borrowings
Other liabilities
Residual (assets less liabilities)
253.2
140.8
134.9
260.0
139.8
133.0
260.0
144.1
133.8
267.6
143.8
134.4
268.3
146.9
133.9
267.0
156.6
136.6
278.3
148.4
135.8
283.5
143.5
132.0
276.0
140.4
131.5
269.9
141.1
131.9
281.3
138.7
134.0
7.5
15,235
8.0
15,271
5.9
15,289
17.0
15,311
11.7
15,330
2.4
15,318
10.7
15,329
17.1
15,332
7.0
15,366
9.6
15,376
17.8
15,390
MEMO:
43
44
U.S. Treasury note balances included in
borrowing
Number of banks
1. Domestically chartered commercial banks include all commercial banks in
the United States except branches of foreign banks; included are member and
nonmember banks, stock savings banks, and nondeposit trust companies.
2. Other assets include loans to U.S. commercial banks.
3. Commercial banking institutions include domestically chartered commercial
banks, branches and agencies of foreign banks, Edge Act and Agreement
corporations, and New York State foreign investment corporations.
NOTE. Figures are partly estimated. They include all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries. Data for domestically chartered commercial banks are for the last Wednesday of the month. Data
for other banking institutions are estimates made on the last Wednesday of the
month based on a weekly reporting sample of foreign-related institutions and
quarter-end condition report data.
A20
1.26
DomesticNonfinancialStatistics • May 1983
ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $750 Million or More on
December 31, 1977, Assets and Liabilities
Millions o f dollars, W e d n e s d a y
figures
Mar. 2
1 Cash items in process of collection
2 Demand deposits due from banks in the United States.
3 All other cash and due from depository institutions . . .
4 Total loans and securities
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Securities
U.S. Treasury securities
Trading account
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities
Trading account
Investment account
U.S. government agencies
States and political subdivisions, by maturity
One year or less
Over one year
Other bonds, corporate stocks and securities
Loans
19 Federal funds sold 1
20
To commercial banks
21
To nonbank brokers and dealers in securities
22
To others
23 Other loans, gross
24
Commercial and industrial
25
Bankers acceptances and commercial paper
26
All other
27
U.S. addressees
28
Non-U.S. addressees
29
Real estate
30
To individuals for personal expenditures
To financial institutions
31
Commercial banks in the United States
32
Banks in foreign countries
33
Sales finance, personal finance companies, etc. . . .
34
Other financial institutions
35
To nonbank brokers and dealers in securities
36
To others for purchasing and carrying securities 2 . . .
37
To finance agricultural production
38
All other
39 LESS: Unearned income
40
Loan loss reserve
41 Other loans, net
42 Lease financing receivables
43 All other assets
44 Total assets
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
Deposits
Demand deposits
Mutual savings banks
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Time and savings deposits
Savings
Individuals and nonprofit organizations
Partnerships and corporations operated for profit .
Domestic governmental units
All other
Time
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Foreign governments, official institutions, and
banks
Liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money 3
Other liabilities and subordinated notes and debentures
70 Total liabilities
71 Residual (total assets minus total liabilities) 4
Mar. 9
Mar. 23
Mar. 30"
Apr. 6p
Apr. 13p
Apr. 20p
Apr. 27p
54,311
7,743
37,128
45,090
6,686
32,276
50,967
7,148
34,130
43,587
6,373
33,903
49,325
6,788
33,978
52,165
7,095
32,359
49,457
6,691
31,061
50,748
7,309
33,591
47,533
6,594
35,840
665,408
660,512
658,624
653,772
652,512
668,910
662,138
662,077
657,022
49,366
9,344
40,022
12,287
25,090
2,645
81,848
4,748
77,100
16,139
57,549
6,995
50,554
3,412
51,138
10,648
40,490
12,584
25,212
2,694
81,712
4,734
76,978
16,072
57,462
7,064
50,399
3,443
49,879
9,152
40,727
12,831
25,244
2,652
80,924
4,699
76,225
15,635
57,041
6,739
50,302
3,549
49,937
9,625
40,312
12,741
24,973
2,598
80,829
4,676
76,153
15,635
56,984
6,724
50,259
3,535
49,098
8,510
40,587
12,996
24,971
2,621
80,877
4,679
76,198
15,574
57,083
6,663
50,420
3,542
51,389
9,467
41,922
13,867
25,392
2,662
81,137
5,294
75,843
15,563
56,735
6,541
50,194
3,544
51,964
10,196
41,768
13,710
25,400
2,658
80,967
4,931
76,036
15,594
56,850
6,625
50,225
3,592
51,809
10,495
41,314
13,295
25,400
2,618
83,307
6,624
76,683
15,916
57,182
7,086
50,097
3,584
51,006
9,876
41,129
13,186
25,287
2,656
83,520
6,610
76,910
16,108
57,314
7,042
50,272
3,488
44,901
32,160
8,959
3,782
502,695
218,270
4,573
213,697
206,812
6,886
134,244
74,859
44,604
30,743
9,941
3,920
496,481
216,467
4,444
212,023
205,260
6,763
134,246
74,730
42,036
30,241
8,306
3,489
499,207
217,390
4,749
212,641
205,856
6,786
134,411
74,740
37,221
26,684
7,250
3,286
499,187
216,653
4,357
212,296
205,518
6,779
134,466
74,684
35,752
25,216
7,228
3,308
500,104
216,581
4,847
211,734
204,931
6,803
134,568
74,789
47,793
36,485
7,860
3,448
501,812
217,432
4,883
212,549
205,836
6,714
134,637
74,815
43,768
31,438
8,897
3,433
498,696
215,562
4,262
211,299
204,543
6,756
134,729
74,904
39,624
27,823
8,798
3,004
500,598
216,022
4,227
211,795
205,040
6,755
134,825
75,278
38,962
27,323
8,377
3,262
496,819
214,638
4,261
210,377
203,841
6,536
134,646
75,395
7,677
7,533
10,490
16,071
8,571
2,580
6,396
16,004
5,361
8,042
489,293
11,130
147,031
7,282
7,277
10,104
15,959
6,928
2,563
6,388
14,535
5,364
8,059
483,058
11,128
147,223
7,978
7,701
10,174
15,795
7,181
2,563
6,485
14,789
5,356
8,065
485,786
11,119
146,811
8,164
7,596
10.413
15,890
6,899
2,669
6,542
15,209
5,331
8,071
485,785
11,070
142,888
7,586
7,585
10,504
16,077
8,138
2,673
6,638
14,964
5,327
7,991
486,785
11,058
141,703
7,576
7,842
10,598
15,836
7,532
2,727
6,693
16,124
5,320
7,901
488,591
11,076
146,750
7,583
7,715
10,323
15,906
7,845
2,655
6,782
14,692
5,325
7,932
485,439
11,081
144,585
7,700
7,486
10,173
15,911
8,160
2,824
6,841
15,376
5,307
7,954
487,336
11,095
144,075
7,999
7,024
9,491
15,808
7,215
2,796
6,804
15,003
5,282
8,003
483,534
11,166
140,506
922,751
902,915
908,800
891,593
895,364
918,355
905,013
908,895
898,661
182,689
720
136,565
5,530
2,580
20,790
5,908
915
9,681
415,774
159,109
143,467
14,374
1,169
98
256,665
221,850
19,909
439
10,676
169,173
630
129,073
4,498
1,073
19,003
5,896
1,044
7,955
414,208
161,339
145,403
14,699
1,140
96
252,869
218,520
19,770
437
10,292
174,507
822
132,341
5,074
2,536
19,085
5,872
893
7,883
413,433
162,988
147,065
14,651
1,172
100
250,445
216,564
19,736
417
9,947
165,010
569
125,250
5,356
2,015
18,118
6,038
1,071
6,592
414,958
163,626
147,617
14,828
1,086
95
251,332
217,274
19,923
531
9,892
173,384
541
130,197
4,439
2,095
18,668
5,600
1,064
10,780
415,145
164,469
148,199
15,061
1,100
109
250,676
216,971
19,789
519
9,710
180,339
704
135,534
4,942
1,817
20,536
5,738
901
10,166
415,356
168,963
152,511
15,293
1,073
85
246,393
213,962
19,088
502
9,251
176,616
668
136,187
4,375
1,586
19,159
5,800
1,016
7,825
416,465
169,494
152,869
15,480
1,056
89
246,971
214,027
19,286
623
9,387
179,049
707
135,176
5,020
4,234
19,461
5,364
982
8,104
413,895
169,232
152,553
15,505
1,082
93
244,663
212,323
19,196
595
9,042
170,783
640
129,369
4,853
3,480
17,574
5,572
1,051
8,246
409,935
166,800
149,969
15,706
1,030
94
243,135
211,074
19,263
579
8,683
3,791
3,850
3,782
3,712
3,686
3,589
3,648
3,507
3,536
1,360
7,585
171,681
84,033
7,381
170,440
81,944
3,268
7,041
168,806
82,240
264
8,437
160,698
82,912
1 196
7,583
156,391
82,533
140
3,548
177,602
81,483
3,674
165,571
82,604
570
. 12,895
161,427
81,224
3 229
13^907
159,637
81,579
863,124
843,145
849,295
832,280
836,232
858,468
844,930
849,060
839,070
59,627
59,770
59,505
59,313
59,132
59,888
60,082
59,835
59,591
1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
Mar. 16
4. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
Weekly Reporting Banks
1.27
A21
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
1983
Account
Mar. 2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
Cash items in process of collection
Demand deposits due from banks in the United States..
All other cash and due from depository institutions . . . .
Total loans and securities
Securities
U.S. Treasury securities
Trading account
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities
Trading account
Investment account
U.S. government agencies
States and political subdivisions, by maturity
One year or less
Over one year
Other bonds, corporate stocks and securities
Loans
Federal funds sold1
To commercial banks
To nonbank brokers and dealers in securities
To others
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate
To individuals for personal expenditures
To financial institutions
Commercial banks in the United States
Banks in foreign countries
Sales finance, personal finance companies, etc
Other financial institutions
To nonbank brokers and dealers in securities
To others for purchasing and carrying securities2 . . . .
To finance agricultural production
All other
LESS: Unearned income
Loan loss reserve
Other loans, net
Lease financing receivables
All other assets
Total assets
Deposits
Demand deposits
Mutual savings banks
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Time and savings deposits
Savings
Individuals and nonprofit organizations
Partnerships and corporations operated for profit ..
Domestic governmental units
All other
Time
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Foreign governments, official institutions, and
banks
Liabilities for borrowed money
66
67
68
69
Treasury tax-and-loan notes
All other liabilities for borrowed money3
Other liabilities and subordinated notes and
debentures
70 Total liabilities
71 Residual (total assets minus total liabilities)4
Mar. 9
Mar. 23
Mar. 3OP
Apr.
6p
Apr. 13?
Apr. 20?
Apr. 27P
50,974
7,086
34,237
42,590
6,081
29,501
48,067
6,580
31,241
40,953
5,744
30,930
46,745
6,272
31,020
49,227
6,535
29,653
46,480
6,128
28,331
47,438
6,709
30,406
44,536
6,019
32,802
619,177
614,043
612,206
607,934
606,847
621,652
615,042
615,260
610,733
45,007
9,168
35,839
10,680
22,767
2,392
74,589
4,576
70,013
14,744
52,149
6,266
45,883
3,120
46,680
10,430
36,250
10,903
22,907
2,440
74,459
4,580
69,879
14,668
52,061
6,337
45,723
3,151
45,332
8,952
36,381
11,053
22,931
2,397
73,588
4,475
69,113
14,228
51,650
6,015
45,635
3,235
45,448
9,458
35,990
11,008
22,638
2,344
73,518
4,506
69,012
14,226
51,576
5,986
45,589
3,210
44,674
8,341
36,333
11,293
22,672
2,367
73,545
4,527
69,018
14,172
51,657
5,917
45,739
3,189
46,901
9,249
37,652
12,095
23,149
2,408
73,854
5,140
68,714
14,178
51,350
5,806
45,544
3,185
47,498
10,005
37,493
11,947
23,143
2,403
73,608
4,735
68,873
14,232
51,424
5,894
45,530
3,218
47,376
10,280
37,096
11,592
23,140
2,364
75,849
6,477
69,372
14,496
51,667
6,305
45,362
3,209
46,623
9,654
36,970
11,548
23,019
2,402
75,997
6,498
69,499
14,596
51,796
6,258
45,537
3,107
39,192
27,051
8,414
3,727
472,773
206,886
4,196
202,690
195,911
6,780
126,251
66,594
38,716
25,606
9,273
3,838
466,592
205,073
4,064
201,009
194,351
6,658
126,246
66,486
36,755
25,570
7,787
3,398
468,932
205,936
4,366
201,570
194,886
6,684
126,358
66,492
32,364
22,398
6,736
3,229
468,985
205,196
3,954
201,242
194,569
6,673
126,407
66,451
31,280
21,278
6,769
3,233
469,652
205,053
4,439
200,613
193,919
6,694
126,488
66,527
41,781
31,072
7,344
3,364
471,329
205,922
4,491
201,431
194,829
6,602
126,510
66,498
37,896
26,216
8,323
3,357
468,290
204,104
3,904
200,200
193,550
6,650
126,560
66,585
34,370
23,318
8,129
2,923
469,913
204,487
3,867
200,620
193,973
6,647
126,685
66,915
34,218
23,194
7,835
3,189
466,164
203,121
3,859
199,262
192,834
6,428
126,468
67,021
7,493
7,455
10,325
15,474
8,535
2,334
6,208
15,216
4,752
7,632
460,389
10,732
142,950
7,098
7,205
9,934
15,365
6,899
2,327
6,198
13,759
4,754
7,649
454,188
10,731
143,134
7,613
7,613
9,996
15,171
7,155
2,326
6,292
13,980
4,746
7,656
456,531
10,723
142,730
7,804
7,528
10,235
15,275
6,868
2,430
6,347
14,445
4,718
7,662
456,605
10,674
138,761
7,130
7,500
10,329
15,444
8,104
2,434
6,445
14,199
4,717
7,588
457,348
10,666
137,282
7,184
7,757
10,427
15,212
7,496
2,489
6,499
15,334
4,717
7,497
459,116
10,677
142,644
7,213
7,638
10,144
15,285
7,815
2,418
6,587
13,941
4,720
7,529
456,041
10,677
140,417
7,231
7,365
10,004
15,292
8,114
2,578
6,644
14,596
4,702
7,547
457,664
10,687
139,939
7,588
6,936
9,310
15,191
7,168
2,555
6,607
14,199
4,676
7,594
453,894
10,758
136,370
865,156
846,081
851,548
834,997
838,833
860,387
847,076
850,438
841,219
169,692
692
126,724
4,959
2,259
18,995
5,859
909
9,294
387,052
147,281
132,972
13,133
1,085
90
239,771
207,306
17,879
334
10,462
157,217
607
119,645
3,952
972
17,520
5,852
1,043
7,626
385,500
149,364
134,781
13,436
1,060
88
236,136
204,104
17,764
332
10,085
162,080
795
122,724
4,410
2,326
17,526
5,824
892
7,583
384,538
150,896
136,307
13,408
1,089
91
233,642
202,081
17,720
317
9,743
152,929
545
115,988
4,505
1,840
16,692
5,995
1,070
6,292
386,026
151,509
136,851
13,566
1,008
84
234,517
202,813
17,873
430
9,688
161,227
518
120,804
3,842
1,898
17,164
5,547
1,062
10,394
386,236
152,264
137,356
13,788
1,020
100
233,971
202,565
17,786
430
9,504
167,522
661
125,677
4,326
1,580
18,943
5,694
900
9,741
386,132
156,382
141,313
14,003
990
77
229,749
199,543
17,154
408
9,056
163,814
632
126,247
3,850
1,256
17,619
5,760
1,015
7,434
387,236
156,880
141,640
14,181
978
81
230,355
199,649
17,333
528
9,198
165,911
681
125,442
4,383
3,449
17,910
5,319
981
7,746
384,680
156,666
141,363
14,214
1,003
85
228,014
197,904
17,247
509
8,849
158,268
615
119,870
4,273
2,924
16,087
5,528
1,050
7,922
380,861
154,446
138,975
14,431
955
85
226,414
196,590
17,306
492
8,490
3,791
3,850
3,782
3,712
3,686
3,589
3,648
3,507
3,536
6,999
160,444
3,253
6,589
159,107
229
7,922
151,441
1,158
7,114
147,288
130
3,324
167,610
3,466
155,770
544
12,227
151,741
3,145
13,199
150,285
1,360
7,158
162,075
81,978
79,943
80,240
80,898
80,476
79,593
80,518
79,297
79,668
809,315
790,103
795,807
779,445
783,499
804,311
790,804
794,401
785,426
55,841
55,978
55,741
55,552
55,334
56,076
56,272
56,036
55,793
1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes federal funds purchased and securities sold under agreement to
repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
Mar. 16
4. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
A22
1.28
DomesticNonfinancialStatistics • May 1983
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures
1983
Account
Mar. 2
1 Cash items in process of collection
2 Demand deposits due from banks in the United States..
3 All other cash and due from depository institutions . . . .
4 Total loans and securities1
s
6
7
8
9
Loans
19 Federal funds sold3
20 To commercial banks
21 To nonbank brokers and dealers in securities
22 To others
23 Other loans, gross
24 Commercial and industrial
Bankers' acceptances and commercial paper
25
26
All other
27
U.S. addressees
28
Non-U.S. addressees
29 Real estate
30 To individuals for personal expenditures
To financial institutions
31
Commercial banks in the United States
Banks in foreign countries
32
33
Sales finance, personal finance companies, etc
34
Other financial institutions
35 To nonbank brokers and dealers in securities
36 To others for purchasing and carrying securities4 . . . .
37 To finance agricultural production
38 All other
39 LESS: Unearned income
Loan loss reserve
40
41 Other loans, net
42 Lease financing 5 receivables
43 All other assets
Total assets
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
Mar. 16
Mar. 23
Mar. 30P
Apr.
6p
Apr. 13p
Apr. 20p
Apr. 27p
17,821
1,246
7,420
15,728
1,066
6,936
16,455
1,172
7,622
13,744
1,011
6,154
18,952
1,064
5,884
18,548
1,101
7,476
16,742
934
5,085
17,208
1,017
4,373
15,856
902
5,628
147,268
143,651
144,473
141,859
142,175
145,475
142,749
142,886
141,999
9,288
1,371
7,357
559
9,252
1,298
7,345
610
9,215
1,320
7,309
585
8,745
1,343
6,891
510
8,860
1,413
6,935
511
9,475
1,635
7,292
548
9,467
1,628
7,278
561
9,454
1,630
7,316
508
9,399
1,684
7,211
504
13,886
1,447
11,658
1,499
10,159
782
13,942
1,447
11,717
1,577
10,139
778
13,802
1,436
11,586
1,402
10,184
780
13,776
1,435
11,567
1,384
10,183
774
13,815
1,444
11,585
1,376
10,209
786
13,746
1,465
11,501
1,301
10,200
780
13,769
1,465
11,515
1,309
10,206
790
14,078
1,464
11,802
1,568
10,234
812
14,044
1,447
11,777
1,518
10,258
821
11,049
5,074
4,027
1,948
116,952
60,182
1,143
59,039
57,518
1,520
19,015
11,420
11,012
5,200
4,106
1,706
113,382
59,497
1,038
58,458
57,001
1,457
19,099
11,427
10,686
5,576
3,475
1,635
114,712
59,626
1,137
58,489
57,006
1,483
19,164
11,421
9,305
4,694
3,118
1,493
113,968
59,120
1,055
58,065
56,549
1,516
19,222
11,434
8,839
4,160
3,019
1,660
114,586
59,295
1,211
58,084
56,525
1,559
19,264
11,460
11,083
5,528
3,886
1,668
115,010
59,628
952
58,676
57,228
1,448
19,317
11,460
9,872
4,363
3,903
1,605
113,537
58,739
1,086
57,653
56,188
1,465
19,297
11,480
9,279
4,153
3,690
1,436
113,986
58,814
1,037
57,777
56,306
1,471
19,408
11,578
11,033
5,527
4,004
1,503
111,447
57,876
951
56,925
55,431
1,494
19,498
11,541
2,848
3,104
4,578
4,902
5,286
646
408
4,563
1,402
2,505
113,045
2,018
62,695
2,531
2,771
4,297
4,787
4,022
642
436
3,871
1,412
2,524
109,445
2,017
63,646
2,542
3,095
4,365
4,774
4,857
650
461
3,757
1,420
2,523
110,770
2,018
62,150
2,816
2,731
4,470
4,842
4,204
700
469
3,959
1,416
2,518
110,033
2,018
58,937
2,255
2,592
4,515
4,919
5,298
686
480
3,821
1,426
2,498
110,661
2,008
56,502
2,362
2,728
4,606
4,795
4,732
680
480
4,220
1,416
2,423
111,171
2,020
60,269
2,423
2,781
4,428
4,751
4,722
678
483
3,754
1,432
2,464
109,641
2,028
62,041
2,240
2,496
4,317
4,942
5,329
599
506
3,756
1,440
2,471
110,075
2,042
63,782
2,501
2,339
3,942
4,885
4,167
570
481
3,645
1,432
2,492
107,523
2,041
60,583
238,470
233,044
233,891
223,724
226,586
234,888
229,579
231,307
227,009
51,050
314
34,362
782
535
4,522
4,561
704
5,271
76,349
23,412
21,128
1,973
263
47
52,937
43,604
2,337
81
5,332
47,183
275
31,727
654
243
4,756
4,532
848
4,146
75,173
23,936
21,704
1,941
244
46
51,238
42,214
2,280
78
5,055
47,140
461
31,772
667
689
4,246
4,538
696
4,071
74,484
24,476
22,222
1,952
253
50
50,008
41,244
2,248
73
4,884
44,481
257
30,198
704
518
4,170
4,722
853
3,058
74,560
24,878
22,612
2,002
215
48
49,682
40,828
2,281
83
4,948
49,699
179
31,807
574
555
4,640
4,238
833
6,872
74,760
25,310
23,053
1,986
199
72
49,450
40,711
2,271
81
4,877
49,709
279
32,722
747
273
5,083
4,509
680
5,416
74,811
26,457
24,198
2,007
205
47
48,354
40,048
2,213
70
4,538
47,665
294
32,692
606
381
4,496
4,544
795
3,857
74,976
26,949
24,653
2,057
186
53
48,028
39,187
2,266
303
4,711
48,766
369
33,206
710
965
4,684
4,059
765
4,008
73,852
27,094
24,707
2,132
197
58
46,758
38,232
2,283
280
4,503
46,146
312
30,726
646
915
4,139
4,322
859
4,226
72,728
27,013
24,600
2,165
189
58
45,716
37,354
2,299
230
4,355
1,582
1,510
1,486
1,561
1,460
1,476
1 110
3,134
52,580
32,190
Securities
Investment account, by maturity
One year or less
Over one through five years
10
Over five years
ii Other securities2
i?
Investment account
13
14
U.S. government agencies
15
States and political subdivisions, by maturity
One year or less
16
Over one year
17
Other bonds, corporate stocks and securities
18
44
Mar. 9
Deposits
Demand deposits
Mutual savings banks
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Time and savings deposits
Savings
Individuals and nonprofit organizations
Partnerships and corporations operated for profit ..
Domestic governmental units
All other
Time
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Foreign governments, official institutions, and
banks
Liabilities for borrowed money
66
67 Treasury tax-and-loan notes
68 All other liabilities for borrowed money6
69 Other liabilities and subordinated notes and debentures .
70 Total liabilities
71 Residual (total assets minus total liabilities)7
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.
1,610
1,559
1,542
1,320
2,038
55,998
32,571
1,978
57,642
31,873
2,495
1,949
56,130
32,579
200
2,252
51,260
32,028
1,994
49,541
31,783
922
58,041
32,156
971
54,351
32,270
475
3,041
53,917
32,007
219,326
213,850
214,777
204,780
207,778
215,641
210,234
212,058
207,889
19,144
19,194
19,114
18,944
18,807
19,248
19,346
19,250
19,120
5. Includes trading account securities.
6. Includes federal funds purchased and securities sold under agreements to
repurchase.
7. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
Weekly Reporting Banks
1.29
LARGE WEEKLY REPORTING COMMERCIAL BANKS
A23
Balance Sheet Memoranda
Millions of dollars, Wednesday figures
1983
Account
Mar. 2
Mar. 9
Mar. 16
Mar. 23
Mar. 30?
Apr.
6p
Apr. 13 p
Apr. 20p
Apr.
21p
BANKS WITH ASSETS OF $ 7 5 0 MILLION OR MORE
1 Total loans (gross) and securities adjusted 1
2 Total loans (gross) adjusted 1
3 Demand deposits adjusted 2
638,973
507,759
105,008
635,910
503,060
104,006
633,826
503,023
101,918
632,326
501,560
101,290
633,028
503,054
103,2%
638,071
505,545
105,822
636,375
503,444
106,415
639,815
504,699
104,606
634,984
500,458
102,197
4 Time deposits in accounts of $100,000 or more
5 Negotiable CDs
6 Other time deposits
159,204
111,311
47,893
156,184
108,466
47,718
154,130
106,400
47,730
155,381
107,372
48,008
154,933
107,072
47,861
151,141
103,565
47,576
151,702
104,101
47,601
149,281
101,563
47,718
147,648
99,741
47,907
2,864
2,282
581
2,997
2,357
640
2,933
2,322
611
2,984
2,366
617
3,017
2,390
626
3,036
2,412
624
3,051
2,426
625
3,047
2,427
619
2,868
2,243
624
10 Total loans (gross) and securities adjusted 1
11 Total loans (gross) adjusted 1
12 Demand deposits adjusted 2
597,017
477,421
97,464
593,743
472,604
96,135
591,426
472,506
94,161
590,113
471,147
93,443
590,743
472,524
95,421
595,609
474,854
97,772
593,862
472,757
98,460
596,959
473,734
97,114
592,222
469,601
94,721
13 Time deposits in accounts of $100,000 or more
14 Negotiable CDs
15 Other time deposits
150,935
106,794
44,141
148,034
104,099
43,935
145,834
101,884
43,950
147,123
102,966
44,157
146,783
102,695
44,088
143,037
99,144
43,893
143,618
99,719
43,899
141,147
97,156
43,990
139,475
95,326
44,148
2,798
2,233
565
2,931
2,306
625
2,871
2,275
596
2,921
2,323
598
2,953
2,345
608
2,972
2,366
606
2,988
2,380
608
2,991
2,384
606
2,813
2,200
612
143,254
120,080
28,172
139,856
116,662
26,456
140,297
117,280
25,750
138,284
115,763
26,048
139,684
117,010
25,552
141,424
118,202
25,805
139,858
116,622
26,045
140,404
116,872
25,909
137,896
114,452
25,236
41,192
30,832
10,360
39,823
29,541
10,282
38,724
28,525
10,200
38,548
28,398
10,150
38,409
28,382
10,027
37,387
27,308
10,079
37,198
27,183
10,015
35,977
25,913
10,063
35,062
25,058
10,004
7 Loans sold outright to affiliates3
8 Commercial and industrial
9 Other
BANKS WITH ASSETS OF $1 BILLION OR MORE
16 Loans sold outright to affiliates3
17 Commercial and industrial
18 Other
BANKS IN N E W YORK CITY
19 Total loans (gross) and securities adjusted 14
20 Total loans (gross) adjusted 1
21 Demand deposits adjusted 2
22 Time deposits in accounts of $100,000 or more
23 Negotiable CDs
24 Other time deposits
1. Exclusive of loans and federal funds transactions with domestic commercial
banks.
2. All demand deposits except U.S. government and domestic banks less cash
items in process of collection.
3. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company,
4. Excludes trading account securities.
A24
DomesticNonfinancialStatistics • May 1983
1.291
LARGE WEEKLY REPORTING BRANCHES A N D AGENCIES OF FOREIGN BANKS
Assets and Liabilities
Millions of dollars, Wednesday figures
1983
Account
Mar. 2
Mar. 9
Mar. 16
Mar. 23
Mar. 3OP
Apr.
6p
Apr.
13P
Apr. 20p
Apr.
27P
Cash and due from depository institutions.
Total loans and securities
U.S. Treasury securities
Other securities
Federal funds sold1
To commercial banks in United States . .
To others
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial
paper
Allother
U.S. addressees
Non-U.S. addressees
To financial institutions
Commercial banks in United States...
Banks in foreign countries
Nonbank financial institutions
For purchasing and carrying securities . .
All other
Other assets (claims on nonrelated
parties)
Net due from related institutions
Total assets
7,232
42,716
3,691
890
2,914
2,832
82
35,221
17,963
7,560
42,911
3,850
903
2,745
2,620
125
35,412
18,399
7,409
43,418
3,760
907
2,988
2,624
364
35,761
18,411
7,199
43,767
3,804
908
3,725
3,533
193
35,330
18,408
7,448
43,530
3,935
901
2,661
2,578
83
36,033
18,690
7,816
41,268
4,065
876
2,270
2,180
90
34,057
17,696
7,626
40,265
3,985
844
1,700
1,637
63
33,736
17,653
7,245
41,666
3,738
833
2,919
2,688
230
34,176
17,719
7,148
40,949
3,956
838
2,130
1,717
413
34,026
17,512
2,698
15,265
13,424
1,841
13,113
10,256
2,273
584
426
3,719
3,052
15,347
13,500
1,847
12,965
10,196
2,186
584
390
3,658
2,848
15,562
13,803
1,759
13,389
10,547
2,274
568
464
3,497
2,830
15,579
13,748
1,831
13,035
9,882
2,583
570
404
3,482
2,700
15,990
14,252
1,738
13,390
10,175
2,656
558
426
3,526
2,621
15,075
13,406
1,669
12,642
9,566
2,485
591
312
3,407
2,676
14,977
13,323
1,654
12,443
9,285
2,554
604
244
3.396
2,616
15,103
13,379
1,725
12,504
9,445
2,443
617
370
3,582
2,566
14,945
13,274
1,671
12,563
9,618
2,356
589
356
3,595
10,268
13,462
73,678
10,233
13,456
74,159
10,553
13.573
74,952
10,409
11,990
73,366
10,242
12,854
74,073
9,904
15,169
74,157
10.358
14.192
72,441
10,461
12,636
72,008
10,781
12,915
71,794
23 Deposits or credit balances2
24 Credit balances
25 Demand deposits
26
Individuals, partnerships, and
corporations
27
Other
28 Total time and savings
29
Individuals, partnerships, and
corporations
30
Other
31 Borrowings3
32 Federal funds purchased4
33
From commercial banks in United
States
34
From others
35 Other liabilities for borrowed m o n e y . . . .
36
To commercial banks in United States
37
To others
38 Other liabilities to nonrelated parties
39 Net due to related institutions
40 Total liabilities
23,359
203
1,925
23,157
199
1,810
23,287
299
1,875
23,788
198
1,698
24,111
188
1,703
23,622
176
2,351
22,440
193
1,696
22,288
173
1,781
22,123
183
1,689
845
1,080
21,230
821
989
21,148
900
975
21,113
817
881
21,893
800
904
22,219
851
1,500
21,095
778
918
20,551
789
991
20,334
782
906
20,250
18,164
3,066
31,420
10,590
17,899
3,248
31,328
10,595
17,726
3,387
31,902
11,104
18,636
3,256
28,993
8,117
18.922
3,297
29,914
8,255
17,999
3,096
31,988
11,190
17,619
2,932
31,842
10,905
17,581
2,753
30,453
10,024
17,524
2,727
29,993
10,143
8,922
1,667
20,830
18,421
2,409
11,371
7,528
73,678
9,171
1,424
20,733
18,250
2,483
11,266
8,408
74,159
9,442
1,661
20,799
18,359
2,440
11,482
8,280
74,952
6,351
1,766
20,876
18,414
2,462
11,388
9,196
73,366
6,402
1,852
21,660
19,242
2,418
11,071
8,977
74,073
9,451
1,739
20,798
18,466
2,333
10,860
7,685
74,157
9,166
1,738
20,937
18,291
2,646
11,225
6,934
72,441
8,419
1,605
20,429
17,836
2,593
11,361
7,906
72,008
8,500
1,643
19,850
17,058
2,792
11,614
8,064
71,794
29,628
25,047
30,095
25,341
30,246
25,579
30,353
25,641
30,776
25,941
29,522
24,580
29,343
24,514
29,533
24,961
29,614
24,820
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
MEMO
41 Total loans (gross) and securities
adjusted 5
42 Total loans (gross) adjusted 5
1. Includes securities purchased under agreements to resell.
2. Balances due to other than directly related institutions.
3. Borrowings from other than directly related institutions.
1.30
4. Includes securities sold under agreements to repurchase.
5. Excludes loans and federal funds transactions with commercial banks in
United States.
LARGE WEEKLY REPORTING COMMERCIAL BANKS
ASeries discontinued.
Domestic Classified Commercial and Industrial LoansA
IPC Demand Deposits
1.31
A25
GROSS D E M A N D DEPOSITS of Individuals, Partnerships, and Corporations'
Billions of dollars, estimated daily-average balances
Commercial banks
Type of holder
1978
Dec.
19792
Dec.
June 3
1 AU holders—Individuals, partnerships, and
corporations
294.6
302.2
315.5
2
3
4
5
6
27.8
152.7
97.4
2.7
14.1
27.1
157.7
99.2
3.1
15.1
29.8
162.3
102.4
3.3
17.2
Financial business
Nonfinancial business
Consumer
Foreign
Other
1982
1981
1980
Dec.
I
|
n.a.
1
1
t
Sept.
Dec.
Mar.
June
Sept.
Dec.
277.5
288.9
268.9
271.5
276.7
295.4
28.2
148.6
82.1
3.1
15.5
28.0
154.8
86.6
2.9
16.7
27.8
138.7
84.6
3.1
14.6
28.6
141.4
83.7
2.9
15.0
31.9
142.9
83.3
2.9
15.7
35.5
151.7
88.1
3.0
17.1
Weekly reporting banks
1978
Dec.
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
19794
Dec.
June 3
147.0
139.3
147.4
19.8
79.0
38.2
2.5
7.5
20.1
74.1
34.3
3.0
7.8
21.8
78.3
35.6
3.1
8.6
1. Figures include cash items in process of collection. Estimates of gross
deposits are based on reports supplied by a sample of commercial banks. Types of
depositors in each category are described in the June 1971 BULLETIN, p. 466.
2. Beginning with the March 1979 survey, the demand deposit ownership
survey sample was reduced to 232 banks from 349 banks, and the estimation
procedure was modified slightly. To aid in comparing estimates based on the old
and new reporting sample, the following estimates in billions of dollars for
December 1978 have been constructed using the new smaller sample; financial
business, 27.0; nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and
other, 15.1.
1981
1980
Dec.
•
n.a.
Sept.
1982
Dec.
Mar.
June
Sept.
Dec.
131.3
137.5
126.8
127.9
132.1
144.0
20.7
71.2
28.7
2.9
7.9
21.0
75.2
30.4
2.8
8.0
20.2
67.1
29.2
2.9
7.3
20.2
67.7
29.7
2.8
7.5
23.4
68.7
29.6
2.7
7.7
26.7
74.2
31.9
2.9
8.4
3. Demand deposit ownership survey estimates for June 1981 are not available
due to unresolved reporting errors.
4. After the end of 1978 the large weekly reporting bank panel was changed to
170 large commercial banks, each of which had total assets in domestic offices
exceeding $750 million as of Dec. 31, 1977. See "Announcements," p. 408 in the
May 1978 BULLETIN. Beginning in March 1979, demand deposit ownership
estimates for these large banks are constructed quarterly on the basis of 97 sample
banks and are not comparable with earlier data. The following estimates in billions
of dollars for December 1978 have been constructed for the new large-bank panel;
financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8; foreign, 2.5;
other, 6.8.
A26
1.32
DomesticNonfinancialStatistics • May 1983
COMMERCIAL PAPER A N D BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1982
Instrument
1977
Dec.
1978
Dec.
1980
Dec.
1979'
Dec.
1981
Dec.
Oct.
Nov.
1983
Dec. 6
Jan.
Feb.
Mar.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
6
Financial companies2
Dealer-placed papefi
Total
Bank-related (not seasonally
adjusted)
Directly placed paper4
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies5
65,051
83,438
112,803
124,374
165,455
169,386
165,110
166,917
165,705
168,675
167,749
8,796
12,181
17,359
19,599
29,904
35,073
35,219
34,216
35,324
37,536
36,254
2,132
3,521
2,784
3,561
6,045
5,791
6,232
2,516
2,660
2,604
2,030
40,574
51,647
64,757
67,854
81,715
79,533
78,290
84,204
82,978
85,020
85,858
7,102
15,681
12,314
19,610
17,598
30,687
22,382
36,921
26,914
53,836
27,712
54,780
27,769
51,601
32,034
48,497
31,691
47,403
31,661
46,119
32,951
45,637
Bankers dollar acceptances (not seasonally adjusted)
7 Total
8
9
10
11
12
13
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
Basis
14 Imports into United States
15 Exports from United States
16 All other
25,450
33,700
45,321
54,744
69,226
75,811
77,125
79,543
77,529
73,706
10,434
8,915
1,519
8,579
7,653
927
9,865
8,327
1,538
10,564
8,963
1,601
10,857
9,743
1,115
10,661
9,399
1,262
10,596
9,455
1,140
10,910
9,471
1,439
10,249
9,067
1,182
9,567
8,258
1,308
954
362
13,700
587
664
23,870
704
1,382
33,370
776
1,791
41,614
195
1,442
56,926
0
1,080
64,070
0
992
65,537
1,480
949
66,204
0
965
66,315
0
1,003
63,136
6,378
5,863
13,209
8,574
7,586
17,540
10,270
9,640
25,411
11,776
12,712
30,257
14,765
15,400
39,061
16,511
16.463
42,837
16,716
16,711
43,699
17,683
16,328
45,532
15,803
17,931
43,794
14,976
17,633
41,097
1. A change in reporting instructions results in offsetting shifts in the dealerplaced and directly placed financial company paper in October 1979.
2. Institutions engaged primarily in activities such as, but not limited to,
commercial, savings, and mortgage banking; sales, personal, and mortgage
financing; factoring, finance leasing, and other business lending; insurance
underwriting; and other investment activities.
3. Includes all financial company paper sold by dealers in the open market.
4. As reported by financial companies that place their paper directly with
investors.
n.a.
5. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
6. Effective December 1, 1982, there was a break in the commercial paper
series. The key changes in the content of the data involved additions to the
reporting panel, the exclusion of broker or dealer placed borrowings under any
master note agreements from the reported data, and the reclassification of a large
portion of bank-related paper from dealer-placed to directly placed.
Business Lending
1.33
All
PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum
1981—Nov. 17
16.5017.00
16.50
16.00
15.75
20
24
Dec. 1
1982—Feb. 18
23
July 20
29
1.34
Rate
Effective Date
Effective date
17.00
16.50
16.00
15.50
Aug.
2
16
1981—Oct
Nov
Dec
23
7
14
Nov. 22
Oct.
11.00
1983—Jan. 11
Feb. 28
10.50
18.45
16.84
15.75
1982—Jan
Feb
Mar
Apr
May
June
15.00
14.50
14.00
13.50
13.00
12.00
11.50
18
Average
rate
Month
15.75
16.56
16.50
16.50
16.50
16.50
1982—July
Aug.
Sept.
Oct.
Nov.
Dec.
1983—Jan.
Feb.
Mar.
Apr.
TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 7-11, 1983
Size of loan (in thousands of dollars)
All
sizes
1,000
1-24
and over
SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS
1
2
3
4
5
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per annum) .
Interquartile range 1
Percentage of amount of loans
6 With floating rate
7 Made under commitment
8 With no stated maturity
41,172,020
168,504
1.0
10.20
9.42-10.33
1,021,295
125,222
4.1
14.44
13.12-15.48
553,106
16,919
4.2
13.57
12.68-14.37
692,787
11,148
4.8
13.40
12.47-14.37
1,803,408
9,316
4.1
12.71
11.68-13.75
797,941
1,200
3.2
11.59
10.64-12.56
36,303,484
4,698
29.5
32.2
12.0
46.2
44.5
19.3
41.0
39.2
13.7
56.6
46.5
61.9
66.7
30.1
16.9
58.8
21.2
450,537
144,074
2,454,128
459
50.9
20.6
57.3
7.6
.6
9.81
9.38-9.96
6.0
LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS
9
10
11
12
13
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per annum) .
Interquartile range 1
Percentage of amount of loans
14 With floating rate
15 Made under commitment
462,857
3,511,595
24,758
52.5
21,881
2,201
218
9.95-12.68
42.2
14.56
12.68-16.08
75.2
13.86
12.68-15.16
41.2
12.48
11.57-13.03
69.3
69.0
45.5
27.0
66.1
54.5
65.7
11.81
16
17
18
19
20
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per annum)
Interquartile range 1
21
22
23
24
Percentage of amount of loans
With floating rate
Secured by real estate
Made under commitment
With no stated maturity
Type of construction
25 1- to 4-family
26 Multifamily
27 Nonresidential
LOANS TO FARMERS
28
29
30
31
32
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per annum)
Interquartile range 1
33
34
35
36
37
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
1,859,351
26,699
6.2
12.56
10.92-13.81
131,679
16,985
4.7
14.84
13.43-16.83
6.8
13.45
12.55-15.02
20.4
5.7
73.9
15.9
32.7
1.3
26.5
1.6
71.9
1,084,513
374
5.3
11.35
10.09-12.13
67.5
97.9
84.4
1.6
59.8
49.3
36.4
4.0
36.7
4.0
59.4
7.3
8.0
84.7
41.4
2.0
56.6
26.8
10-24
1-9
73.7
79.8
325,998
2,253
9.0
13.89
13.24-14.75
66.3
81.3
44.1
3.6
53.5
.6
45.9
45.1
3.8
50-99
100-249
250 and over
1,245,489
66,458
9.6
13.85
13.10-14.75
163,829
44,427
7.9
14.44
13.52-15.03
181,268
12,094
8.9
14.48
13.96-15.00
155,502
4,528
7.1
14.21
13.65-14.93
170,728
2,701
11.2
14.05
13.62-14.49
346,388
2,349
12.7
13.99
13.52-14.65
227,774
359
6.9
12.30
11.47-13.38
13.76
14.23
14.10
14.15
13.14
14.37
14.63
14.46
13.99
14.69
14.40
14.51
14.48
14.33
14.91
14.51
14.71
13.87
14.26
14.43
13.27
14.64
(2)
14.55
(2)
12.94
12.38
(2)
12.87
1. Interest rate range that covers the middle 50 percent of the total dollar
amount of loans made.
2. Fewer than 10 sample loans.
$8-18.12
174,067
2,764
10.1
61.1
All sizes
143,094
4,323
7.7
15.54
19.1
71.4
40.9
55.5
82.6
500 and over
25-49
CONSTRUCTION AND LAND DEVELOPMENT LOANS
10.88
9.76-11.73
(2)
14.24
(2)
14.11
NOTE. For more detail, see the Board's E.2 (111) statistical release,
(2)
10.96
A28
1.35
DomesticNonfinancialStatistics • May 1983
INTEREST RATES Money and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1982
Instrument
1980
1981
1983, week ending
1982
Jan.
Feb.
Mar.
Apr.
Apr. 1
Apr. 8
Apr. 15
Apr. 22
Apr. 29
MONEY MARKET RATES
1 Federal funds 1 2
Commercial paper 3 4
2
1-month
3 3-month
4 6-month
Finance paper, directly placed3-4
5
1-month
6 3-month
7 6-month
Bankers acceptances 4 5
8 3-month
9 6-month
Certificates of deposit, secondary market6
10 1-month
11 3-month
12 6-month
13 Eurodollar deposits, 3-month2
U.S. Treasury bills4
Secondary market7
14
3-month
15
6-month
1-year
16
Auction average8
17
3-month
18
6-month
19
13.36
16.38
12.26
8.68
8.51
8.77
8.80
8.88
9.43
8.76
8.70
8.58
12.76
12.66
12.29
15.69
15.32
14.76
11.83
11.89
11.89
8.19
8.17
8.15
8.30
8.34
8.39
8.56
8.52
8.48
8.58
8.53
8.48
9.04
8.95
8.90
8.86
8.77
8.70
8.53
8.49
8.44
8.47
8.43
8.38
8.36
8.33
8.30
12.44
11.49
11.28
15.30
14.08
13.73
11.64
11.23
11.20
8.03
7.96
7.97
8.25
8.24
8.26
8.48
8.35
8.35
8.52
8.41
8.41
8.87
8.66
8.66
8.76
8.62
8.62
8.46
8.37
8.37
8.46
8.33
8.33
8.34
8.29
8.28
12.72
12.25
15.32
14.66
11.89
11.83
8.19
8.19
8.36
8.41
8.54
8.52
8.49
8.43
8.84
8.85
8.73
8.65
8.48
8.42
8.45
8.39
8.29
8.27
12.91
13.07
12.99
14.00
15.91
15.91
15.77
16.79
12.04
12.27
12.57
13.12
8.28
8.36
8.46
8.97
8.40
8.54
8.77
9.14
8.62
8.69
8.80
9.25
8.60
8.63
8.76
9.23
8.97
9.05
9.16
9.54
8.91
8.93
9.01
9.59
8.57
8.61
8.75
9.30
8.52
8.57
8.71
9.14
8.39
8.40
8.56
9.09
11.43
11.37
10.89
14.03
13.80
13.14
10.61
11.07
11.07
7.86
7.93
8.01
8.11
8.23
8.28
8.35
8.37
8.36
8.21
8.30
8.29
8.64
8.67
8.60
8.45
8.51
8.46
8.16
8.25
8.26
8.12
8.27
8.29
8.11
8.16
8.16
11.506
11.374
10.748
14.077
13.811
13.159
10.686
11.084
11.099
7.810
7.898
8.007
8.130
8.233
8.308
8.304
8.325
8.427
8.252
8.343
8.275
8.680
8.705
8.664
8.705
8.165
8.248
8.03
8.20
8.275
8.15
8.22
8.94
8.83
9.71
9.98
10.26
10.37
10.59
10.43
8.98
9.30
9.57
9.70
9.77
10.02
10.28
10.38
10.62
10.47
9.68
9.95
10.20
10.33
10.57
10.43
CAPITAL MARKET RATES
U.S. Treasury notes and bonds 9
Constant maturities10
20
1-vear
12.05
14.78
12.27
8.62
8.92
9.04
8.98
22
11.77
14.56
12.80
9.33
9.64
9.66
9.57
9.34
9.65
9.89
11.55
11.48
11.43
11.46
11.39
11.30
14.44
14.24
14.06
13.91
13.72
13.44
12.92
13.01
13.06
13.00
12.92
12.76
9.64
10.03
10.36
10.46
10.78
10.63
9.91
10.26
10.56
10.72
11.03
10.88
9.84
10.08
10.31
10.51
10.80
10.63
9.76
10.02
10.29
10.40
10.63
10.48
10.06
10.28
10.53
10.62
10.84
10.68
9.17
9.40
9.72
9.75
9.90
10.13
10.40
10.52
10.74
10.58
10.81
12.87
12.23
10.37
10.60
10.34
10.19
10.40
10.30
10.15
10.18
10.13
7.85
9.01
8.59
10.43
11.76
11.33
10.88
12.48
11.66
9.00
10.98
9.50
8.80
10.59
9.58
8.42
10.05
9.20
8.28
9.75
9.05
8.50
10.10
9.38
8.40
10.00
9.23
8.20
9.80
9.04
8.30
9.80
9.09
8.20
9.40
8.82
12.75
11.94
12.50
12.89
13.67
15.06
14.17
14.75
15.29
16.04
14.94
13.79
14.41
15.43
16.11
12.90
11.79
12.35
13.53
13.94
13.02
12.01
12.58
13.52
13.95
12.71
11.73
12.32
13.15
13.61
12.44
11.51
12.06
12.86
13.29
12.69
11.75
12.31
13.14
13.56
12.57
11.66
12.19
12.99
13.46
12.43
11.51
12.05
12.86
13.31
12.38
11.46
11.99
12.81
13.25
12.35
11.43
12.01
12.80
13.16
12.74
12.70
15.56
15.56
14.41
14.45
12.05
11.84
12.08
12.09
11.70
11.74
11.41
11.50
11.79
11.61
11.63
11.28
11.39
11 41
11.50
11.32
11.34
10.60
5.26
12.36
5.20
12.53
5.81
11.23
4.79
11.13
4.74
10.86
4.59
10.80
4.44
10.78
4.56
10.76
4.63
10.88
4.46
10.82
4.35
10.73
4.33
n
24
25
26
27
28
29
30
2-year
2-1/2-year12
3-year
5-year
7-year
10-year
20-year
30-year
Composite13
Over 10 years (long-term)
State and local notes and bonds
Moody's series14
Aaa
<1
32
Baa
33 Bond Buyer series15
34
35
36
37
38
39
40
41
42
Corporate bonds
Seasoned issues16
All industries
Aaa
Aa
A
Baa
Aaa utility bonds 17
Recently offered issues
MEMO: Dividend/price ratio
Preferred stocks
Common stocks
9.44
18
1. Weekly and monthly figures are averages of all calendar days, where the
rate for a weekend or holiday is taken to be the rate prevailing on the preceding
business day. The daily rate is the average of the rates on a given day weighted by
the volume of transactions at these rates.
2. Weekly figures are statement week averages—that is, averages for the
week ending Wednesday.
3. Unweighted average of offering rates quoted by at least five dealers (in the
case of commercial paper), or finance companies (in the case of finance paper).
Before November 1979, maturities for data shown are 30-59 days, 90-119 days,
and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 150179 days for finance paper.
4. Yields are quoted on a bank-discount basis, rather than an investment yield
basis (which would give a higher figure).
5. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
6. Unweighted average of offered rates quoted by at least five dealers early in
the day.
7. Unweighted average of closing bid rates quoted by at least five dealers.
8. Rates are recorded in the week in which bills are issued. Beginning with the
Treasury bill auction held on Apr. 18, 1983, bidders were required to state the
percentage yield (on a bank discount basis) that they would accept to two decimal
places. Thus, average issuing rates in bill auctions will be reported using two
rather than three decimal places.
9. Yields are based on closing bid prices quoted by at least five dealers.
10. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.
9.54
11. The figure for April 1 is the average Treasury rate for the five business days
ending Thursday, March 31. Subsequent biweekly figures will be the average of
five business days ending on the Monday following the date indicated. Beginning
April 1, 1983, this rate determines the maximum interest payable in the following
two-week period on I-V2 year small saver certificates. (See table 1.16.)
12. Each biweekly figure is the average of five business days ending on the
Monday following the date indicated. Until March 31, 1983, the biweekly rate
determined the maximum interest rate payable in the following two-week period
on 2-Vi year small saver certificates. (See table 1.16.)
13. Unweighted averages of yields (to maturity or call) for all outstanding notes
and bonds neither due nor callable in less than 10 years, including several very low
yielding "flower" bonds.
14. General obligations only, based on figures for Thursday, from Moody's
Investors Service.
15. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
16. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
17. Compilation of the Federal Reserve. Issues included are long-term (20
years or more). New-issue yields are based on quotations on date of offering;
those on recently offered issues (included only for first 4 weeks after termination
of underwriter price restrictions), on Friday close-of-business quotations.
18. Standard and Poor's corporate series. Preferred stock ratio based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
Securities Markets
1.36
STOCK MARKET
A29
Selected Statistics
1983
1982
Indicator
1981
1980
1982
Aug.
Sept.
Oct.
Nov.
Dec.
Feb.
Jan.
Mar.
Apr.
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
3
Transportation
4
Utility
Finance
5
6 Standard & Poor's Corporation (1941-43 = 10)1 . . .
7 American Stock Exchange
(Aug. 31, 1973 = 100)
68.06
78.64
60.52
37.35
64.28
118.71
74.02
85.44
72.61
38.90
73.52
128.05
68.93
78.18
60.41
39.75
71.99
119.71
62.91
70.98
53.98
38.19
62.84
109.65
70.21
80.08
61.39
40.36
69.66
122.43
76.10
86.67
66.64
42.67
80.59
132.66
79.75
90.76
71.92
43.46
88.66
138.10
80.30
92.00
73.40
42.93
86.22
139.37
83.25
95.37
75.65
45.59
85.66
145.13
84.74
97.26
79.44
45.92
86.57
146.80
87.50
100.61
83.28
45.89
93.22
151.88
90.61
104.46
85.26
46.22
99.07
157.71
300.94
343.58
282.62
253.54
286.22
308.74
333.54
333.36
360.92
373.84
383.76
405.02
Volume of trading
(thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
44,867
6,377
46,967
5,346
64,617
5,283
76,031
5,567
73,710
5,064
98,508
7,828
88,431
8,672
76,463
7,475
88,463
9,220
85,026
8,256
82,694
7,354
89,627
8,576
Customer financing (end-of-period balances, in millions of dollars)
10 Regulated margin credit at
brokers-dealers 2
14,721
14,411
13,325
11,396
11,208
11,728
12,459
13,325
13,370
13,985
14,483
11 Margin stock 3
12 Convertible bonds
13 Subscription issues
14,500
219
2
14,150
259
2
12,980
344
1
11,150
245
1
10,950
257
1
11,450
277
1
12,170
288
1
12,980
344
1
13,070
299
1
13,680
304
1
14,170
312
1
2,105
6,070
3,515
7,150
5,735
8,390
4,470
7,550
4,990
7,475
5,520
8,120
5,600
8,395
5,735
8,390
6,257
8,225'
6,195
7,955r
6,370
7,970
Free credit balances at brokers4
14 Margin-account
15 Cash-account
n .a.
Margin-account debt at brokers (percentage distribution, end of period)
100.0
17
18
19
20
21
22
By equity class (in percent)5
Under 40
40-49
50-59
60-69
70-79
80 or more
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
14.0
30.0
25.0
14.0
9.0
8.0
16 Total
37.0
24.0
17.0
10.0
6.0
6.0
21.0
24.0
24.0
14.0
9.0
8.0
30.0
26.0
18.0
12.0
8.0
6.0
27.0
26.0
20.0
12.0
8.0
7.0
21.0
24.0
22.0
16.0
9.0
8.0
20.0
21.0
25.0
15.0
10.0
9.0
21.0
24.0
24.0
14.0
9.0
8.0
18.0
23.0
25.0
16.0
9.0
9.0
18.0
20.0
27.0
16.0
10.0
9.0
17.0
21.0
25.0
18.0
10.0
9.0
n.a.
Special miscellaneous-account balances at brokers (end of period)
23 Total balances (millions of dollars)
Distribution by equity status
(percent)
24 Net credit status
Debt status, equity of
25 60 percent or more
26
Less than 60 percent
6
21,690
25,870
35,598
31,102
31,644
33,689
34,909
35,598
43,838r
43,006
43,472
47.8
58.0
62.0
60.0
61.0
61.0
62.0
62.0
65.(K
66.0
62.0
44.4
7.7
31.0
11.0
29.0
9.0
28.0
12.0
27.0
12.0
29.0
10.0
29.0
9.0
29.0
9.0
28.0'
8.0
27.0
7.0
28.0
9.0
n.a.
Margin requirements (percent of market value and effective date) 7
Mar. 11, 1968
27 Margin stocks
28 Convertible bonds
29 Short sales
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Margin credit includes all credit extended to purchase or carry stocks or
related equity instruments and secured at least in part by stock. Credit extended is
end-of-month data for member firms of the New York Stock Exhange.
In addition to assigning a current loan value to margin stock generally,
Regulations T and U permit special loan values for convertible bonds and stock
acquired through exercise of subscription rights.
3. A distribution of this total by equity class is shown on lines 17-22.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
5. Each customer's equity in his collateral (market value of collateral less net
debit balance) is expressed as a percentage of current collateral values.
6. Balances that may be used by customers as the margin deposit required for
additional purchases. Balances may arise as transfers based on loan values of
other collateral in the customer's margin account or deposits of cash (usually sales
proceeds) occur.
7. Regulations G, T, and U of the Federal Reserve Board of Governors,
prescribed in accordance with the Securities Exchange Act of 1934, limit the
amount of credit to purchase and carry margin stocks that may be extended on
securities as collateral by prescribing a maximum loan value, which is a specified
percentage of the market value of the collateral at the time the credit is extended.
Margin requirements are the difference between the market value (100 percent)
and the maximum loan value. The term "margin stocks" is defined in the
corresponding regulation.
A30
1.37
DomesticNonfinancialStatistics • May 1983
SELECTED FINANCIAL INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1982
Account
1980
1983
1981
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.P
Savings and loan associations
630,712
503,192
57,928
69,592
664,167
518,547
63,123
82,497
692,759
512,997
70,824
108,938
697,690
510,678
72,854
114,158
703,399
509,776
74,141
119,482
691,077
493,899
74,692
122,486
692,549
489,923
75,638
126,988
697,189
488,614
78,122
130,453
706,045
482,234
84,767
139,044
714,676
481,470
90,662
142,544
772,352
481,090
94,080
147,182
729,012
479,405
97,737
151,870
630,712
664,167
692,759
697,690
703,399
691,077
692,549
697,189
706,045
714,676
772,352
729,012
511,636
64,586
47,045
17,541
8,767
12,394
525,061
88,782
62,794
25,988
6,385
15,544
538,667
96,850
66,925
29,925
7,116
24,671
539,830
98,433
67,019
31,414
7,250
27,375
542,648
98,803
66,374
32,429
7,491
29,965
547,628
99,771
65,567
34,204
8,084
19,202
547,112
100,881
65,015
35,866
8,484
20,018
548,439
102,948
64,202
38,746
8,967
21,048
566,189
97,979
63,861
34,118
9,934
15,720
582,918
88,925
60,415
28,510
10,453
16,658
591,913
86,544
58,841
27,703
11,039
17,524
500,737
86,160
57,748
28,412
12,423
15,067
12 Net worth2
33,329
28,395
25,455
24,802
24,492
24,476
24,538
24,754
26,157
26,175
26,371
27,048
13 MEMO: Mortgage loan commitments
outstanding3
16,102
15,225
16,828
15,924
16,943
17,256
18,407
19,682
18,054
19,453
22,051
25,165
1
2
3
4
Assets
Mortgages
Cash and investment securities'
Other
5 Liabilities and net worth
6
7
8
9
10
11
Savings capital
Borrowed money
FHLBB
Other
Loans in process
Other
Mutual savings banks4
171,564
175,728
175,225
175,683
172,901
173,487
172,908
172,287
174,204
174,720
176,370
99,865
11,733
99,997
14,753
96,364
16,721
96,282
17,128
94,498
16,929
94,382
17,458
94,261
17,035
94,017
16,702
94,452
16,876
93,883
17,460
93,545
18,262
8,949
2,390
39,282
4,334
5,011
9,810
2,288
37,791
5,442
5,649
10,217
2,240
36,612
6,074
6,997
10,058
2,236
36,651
6,225
7,104
9,675
2,201
35,937
6,460
7,192
9,404
2,191
35,845
6,695
7,514
9,219
2,505
35,599
6,749
7,540
9,456
2,496
35,753
6,291
7,572
9,685
2,500
36,286
6,920
7,485
10,244
2,453
36,371
6,282
8,062
11,076
2,446
36,850
6,106
8,085
22 Liabilities
171,564
175,728
175,225
175,683
172,901
173,487
172,908
172,287
174,204
174,720
176,370
23
24
25
26
27
28
29
30
154,805
151,416
53,971
97,445
2,086
6,695
11,368
155,110
153,003
49,425
103,578
2,108
10,632
9,986
154,392
152,167
47,977
117,449
2,225
11,264
9,570
154,314
151,969
47,580
116,998
2,345
11,926
9,443
152,014
149,736
46,901
116,213
2,278
11,671
9,216
153,089
150,795
47,496
103,299
2,294
11,166
9,232
152,210
149,928
48,520
101,408
2,283
11,556
9,141
151,304
149,167
49,208
99,959
2,137
11,893
9,089
155,225
152,735
56,548
110,330
2,490
9,742
9,238
157,161
154,918
41,962
104,100
2,243
7,637
9,204
159,193
156,939
41,095
100,676
2,254
7,460
9,205
1,476
1,293
1,010
992
1,056
1,217
1,281
1,400
1,285
1,253
1,295
14 Assets
15
16
17
18
19
20
21
Loans
Mortgage
Other
Securities
U.S. government5
State and local government
Corporate and other6
Cash
Other assets
Deposits
Regular7
Ordinary savings
Time
Other
Other liabilities
General reserve accounts
MEMO: Mortgage loan commitments
outstanding*
n a.
Life insurance companies
31 Assets
32
33
34
35
36
37
38
39
40
41
42
Securities
Government
United States 9
State and local
Foreign10
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
479,210
525,803
547,075
551,124
557,094
563,321
571,902
578,200
584,311
589,490
595,959
21,378
5,345
6,701
9,332
238,113
190,747
47,366
131,030
15,063
41,411
31,702
25,209
8,167
7,151
9,891
255,769
208,098
47,670
137,747
18,278
48,706
40,094
28,243
10,403
7,643
10,197
265,080
219,006
46,074
139,539
19,959
51,438
42,816
28,694
30,263
10,774
12,214
7,705
7,799
10,215
10,250
267,627 270,029
221,503 221,642
48,387
46,124
140,044 140,244
20,198
20,176
51,867 • 52,238
44,144
42,694
30,759
12,606
7,834
10,319
273,539
223,783
49,756
140,404
20,268
52,525
45,826
31,791
13,538
7,871
10,382
279,918
226,879
53,039
140,678
20,293
52,751
46,471
32,682
14,370
7,935
10,377
283,650
229,101
54,549
140,956
20,480
52,916
47,516
34,558
16,072
8,094
10,392
283,799
228,220
55,579
141,919
21,019
53,114
49,902
35,567
16,731
8,225
10,611
290,178
233,380
56,798
142,277
20,922
53,239
47,307
36,946
17,877
8,333
10,736
293,427
235,376
58,051
142,683
21,014
53,383
48,506
n a.
Credit unions"
43 Total assets/liabilities and capital
44 Federal
45 State
71,709
39,801
31,908
77,682
42,382
35,300
84,107
45,705
38,402
84,423
45,931
38,492
85,102
46,310
38,792
86,554
47,076
39,478
88,144
47,649
40,495
89,261
48,272
40,989
69,673
45,483
24,190
69,741
45,418
23,323
71,293
46,449
24,844
73,737
48,057
25,680
46 Loans outstanding
47 Federal
48 State
49 Savings
50 Federal (shares)
51 State (shares and deposits)
47,774
25,627
22,147
64,399
36,348
28,051
50,448
27,458
22,990
68,871
37,574
31,297
49,919
27,295
22,624
74,834
40,710
34,124
50,133
27,351
22,782
75,088
40,969
34,119
50,733
27,659
23,074
75,331
41,178
34,153
51,047
27,862
23,185
76,874
41,961
34,913
50,934
27,789
23,145
78,529
42,852
35,677
50,936
27,824
23,139
79,799
43,413
36,386
43,577
28,184
15,393
63,071
41,341
21,730
43,293
27,966
15,328
63,321
41,441
21,880
43,135
27,832
15,303
64,684
42,404
22,280
43,433
27,974
15,459
67,266
43,890
23,376
For notes see bottom of opposite page.
Federal Finance
1.38
A3 3
FEDERAL FISCAL A N D FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1980
Fiscal
year
1981
Fiscal
year
1982
1982
1981
H2
HI
1983
H2
Jan.
Feb.
Mar.
U.S. budget
1 Receipts1
2 Outlays1-2
3 Surplus, or deficit ( - )
4 Trust funds
5 Federal funds 3
517,112
576,675
-59,563
8,801
-68,364
599,272
657,204
-57,932
6,817
-64,749
617,766
728,375
-110,609
5,456
-116,065
301,777
358,558
-56,780
-8,085
-48,697
322,478
348,678
-26,200
-17,690
-43,889
286,338
390,846
-104,508
-6,576
-97,934
57,505
67,087
-9,582
-3,623
-5,959
38,816
64,152
-25,336
-4,830
-20,506
43,504
69,540
-26,036
2,085
-28,120
Off-budget entities (surplus, or deficit
(-))
6 Federal Financing Bank outlays
7 Other4
-14,549
303
-20,769
-236
-14,142
-3,190
-8,728
-1,752
-7,942
227
-4,923
-2,267
-271
-63
-52
47
-1,244
-16
-73,808
-78,936
-127,940
-67,260
-33,914
-111,699
-9,916
-25,341
-27,296
70,515
79,329
134,993
54,081
41,728
119,609
6,419
17,919
31,303
-355
3,648
-1,878
1,485
-11,911
4,858
-1,111
14,290
-408
-7,405
-9,057
1,146
2,179
1,318
7,496
-74
-6,767
2,761
20,990
4,102
16,888
18,670
3,520
15,150
29,164
10,975
18,189
12,046
4,301
7,745
10,999
4,099
6,900
19,773
5,033
14,740
17,502
2,627
14,875
10,006
2,856
7,150
15,452
3,572
11,880
U.S. budget plus off-budget, including
Federal Financing Bank
8 Surplus, or deficit ( - )
Source or financing
9 Borrowing from the public
10 Cash and monetary assets (decrease, or
increase (-)) 5
11 Other6
MEMO:
12 Treasury operating balance (level, end of
period)
13 Federal Reserve Banks
14 Tax and loan accounts
1. Effective Feb. 8, 1982, supplemental medical insurance premiums and
voluntary hospital insurance premiums, previously included in other insurance
receipts, have been reclassified as offsetting receipts in the health function.
2. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was
reclassified from an off-budget agency to an on-budget agency in the Department
of Labor.
3. Half-year figures are calculated as a residual (total surplus/deficit less trust
fund surplus/deficit).
4. Other off-budget includes Postal Service Fund; Rural Electrification and
Telephone Revolving Fund; and Rural Telephone Bank; it also includes petroleum
acquisition and transportation and strategic petroleum reserve effective November 1981.
5. Includes U.S. Treasury operating cash accounts; special drawing rights; gold
tranche drawing rights; loans to International Monetary Fund; and other cash and
monetary assets.
6. Includes accrued interest payable to the public; allocations of special
drawing rights; deposit funds; miscellaneous liability (including checks outstanding) and asset accounts; seigniorage; increment on gold; net gain/loss for U.S.
currency valuation adjustment; net gain/loss for IMF valuation adjustment; and
profit on the sale of gold.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government." Treasury Bulletin, and the Budget of the United States Government, Fiscal Year 1984.
NOTES TO TABLE 1.37
1. Holdings of stock of the Federal Home Loan Banks are included in "other
assets."
2. Includes net undistributed income, which is accrued by most, but not all,
associations.
3. Excludes figures for loans in process, which are shown as a liability.
4. The NAMSB reports that, effective April 1979, balance sheet data are not
strictly comparable with previous months. Beginning April 1979, data are reported
on a net-of-valuation-reserves basis. Before that date, data were reported on a
gross-of-valuation-reserves basis.
5. Beginning April 1979, includes obligations of U.S. government agencies.
Before that date, this item was included in "Corporate and other."
6. Includes securities of foreign governments and international organizations
and, before April 1979, nonguaranteed issues of U.S. government agencies.
7. Excludes checking, club, and school accounts.
8. Commitments outstanding (including loans in process) of banks in New York
State as reported to the Savings Banks Association of the state of New York.
9. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
10. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
11. As of December 1982, National Credit Union Administration data no longer
includes either federally chartered or state chartered corporate credit unions.
NOTE. Savings and loan associations: Estimates by the FHLBB for all
associations in the United States. Data are based on monthly reports of federally
insured associations and annual reports of other associations. Even when revised,
data for current and preceding year are subject to further revision.
Mutual savings banks: Estimates of National Association of Mutual Savings
Banks for all savings banks in the United States.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for
differences between market and book values are not made on each item separately
but are included, in total, in "other assets."
Credit unions: Estimates by the National Credit Union Administration for a
group of federal and state-chartered credit unions that account for about 30
percent of credit union assets. Figures are preliminary and revised annually to
incorporate recent benchmark data.
A32
1.39
DomesticNonfinancialStatistics • May 1983
U.S. BUDGET RECEIPTS A N D OUTLAYS
Millions of dollars
Calendar year
Source or type
Fiscal
year
1980
Fiscal
year
1981
Fiscal
year
1982
1981
1982
1983
H2
HI
H2
Jan.
Feb.
Mar.
RECEIPTS
1 All sources1
517,112
2 Individual income taxes, net
3 Withheld
4 Presidential Election Campaign Fund . . .
5 Nonwithheld
6 Refunds
Corporation income taxes
7 Gross receipts
8 Refunds
9 Social insurance taxes and contributions,
net
10 Payroll employment taxes and
contributions2
11 Self-employment 3
taxes and
contributions
12 Unemployment insurance
13 Other net receipts1-4
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts5
599,272
617,766
301,777
322,478
286,338
57,505
38,816
43,504
244,069
223,763
39
63,746
43,479
285,917
256,332
41
76,844
47,299
297,744
267,513
39
84,691
54,498
147,035
134,199
5
17,391
4,559
150,565
133,575
34
66,174
49,217
145,676
131,567
5
20,040
5,938
34,151
20,953
0
13,217
18
20,544
22,288
4
1,970
3,717
15,658
24.808
9
3.604
12,764
72,380
7,780
73,733
12,596
65,991
16,784
31,056
6,847'
37,836
8,028
25,661
11,467
2,394
1,230
2,115
2,388
6,985
2,612
157,803
182,720
201,498
91,592
108,079
94,278
17,071
13,797
17,939
133,025
156,932
172,744
82,984
88,795
85,063
15,479
11,845
16,975
5,723
15,336
3,719
6,041
15,763
3,984
7,941
16,600
4,212
244
6,355
2,009
7,357
9,809
2,119
177
6,857
2,181
415
789
387
43
1,553
356
418
160
387
24,329
7,174
6,389
12,748
40,839
8,083
6,787
13,790
36,311
8,854
7,991
16,161
22,097
4,661
3,742
8,441
17,525
4,310
4,208
7,984
16,556
4,299
3,445
7,891
2,707
485
553
1,374
2,795
503
349
1,101
2,755
733
500
1,545
390,847'
67,087
64,152
69,540
100,419 '
4,406
3,903
2,059
- 6,940
13,260
16,297
804
487
296
1,007
3,223
16,567
108
610
330
998
2,170
19,038
1,601
526
488
913
1,003
OUTLAYS
6
576,675
657,204
728,424 R
358,532 R
348,683'
National defense
International affairs
General science, space, and technology . . .
Energy
Natural resources and environment
Agriculture
135,856
10,733
5,722
6,313
13,812
4,762
159,765
11,130
6,359
10,277
13,525
5,572
187,418
9,982
7,070
4,674
12,934
14,875
87,421
4,646'
3,388
4,394
7,296
5,181
93,154
5,183
3,370
2,946r
5,636'
7,087
Commerce and housing credit
Transportation
Community and regional development . . . .
Education, training, employment, social
services
29 Health1
30 Income security6
7,788
21,120
10,068
3,946
23,381
9,394
3,865
20,560
7,165
1,825
10,753
4,269
1,408'
9,915
3,055'
2,244
10,686
4,186
1,213
1,718
504
-559
1,557
405
395
1,776
562
30,767
55,220
193,100
31,402
65,982
225,101
26,300
74,017
248,343
13,874'"
35,322
129,269
12,607'
37,219'
112,782
12,187
39,073
133,779
2,259
6,612
23,010
2,159
6,575
22,812
2,114
6,913
24,840
31
32
33
34
35
36
21,183
4,570
4,505
8,584
52,458
-9,887
22,988
4,696
4,614
6,856
68,726
-16,509
23,955
4,671
4,726
6.393
84,697
-13,270
12,880
2,290
2.320'
3,043
39,952'
-9,564
10,865
2,334
2,400'
3,325
41,883'
-6,490
13,241
2,373
2,322
3,152
44,948
-8,333
837
448
337
1,269
7,616
-849
2,063
412
345
89
8,416
-905
2,292
473
427
40
6,854
-715
18 All types'19
20
21
22
23
24
25
26
27
28
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Net Interest'
Undistributed offsetting receipts 8
1. Effective Feb. 8, 1982, supplemental medical insurance premiums and
voluntary hospital insurance premiums, previously included in other insurance
receipts, have been reclassified as offsetting receipts in the health function.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and civil service retirement and
disability fund.
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous
receipts.
6. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was
reclassified from an off-budget agency to an on-budget agency in the Department
of Labor.
7. Net interest function includes interest received by trust funds.
8. Consists of rents and royalties on the outer continental shelf and U.S.
government contributions for employee retirement.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government" and the Budget of the U.S. Government, Fiscal Year 1984.
Federal Finance
1.40
A3 3
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1982
1981
1980
Item
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
1 Federal debt outstanding
936.7
970.9
977.4
1,003.9
1,034.7
1,066.4
1,084.7
1,147.0
1,201.9
? Public debt securities
3
Held by public
Held by agencies
4
930.2
737.7
192.5
964.5
773.7
190.9
971.2
771.3
199.9
997.9
789.8
208,1
1,028.7
825.5
203.2
1,061.3
858.9
202.4
1,079.6
867.9
211.7
1,142.0
925.6
216.4
1,197.1
987.7
209.4
6.5
5.0
1.5
6.4
4.9
1.5
6.2
4.7
1.5
6.1
4.6
1.5
6.0
4.6
1.4
5.1
3.9
1.2
5.0
3.9
1.1
5.0
3.7
1.3
4.8
3.7
1.1
5 Agency securities
6 Held by public
7 Held by agencies
931.2
965.5
972.2
998.8
1,029.7
1,062.2
1,080.5
1,142.9
1,197.9
9 Public debt securities
10 Other debt1
929.6
1.6
963.9
1.6
970.6
1.6
997.2
1.6
1,028.1
1.6
1,060.7
1.5
1,079.0
1.5
1,141.4
1.5
1,196.5
1.4
11 MEMO: Statutory debt limit
935.1
985.0
985.0
999.8
1,079.8
1,079.8
1,143.1
1,143.1
1,290.2
8 Debt subject to statutory limit
1. Includes guaranteed debt of government agencies, specified participation
certificates, notes to international lending organizations, and District of Columbia
stadium bonds.
1.41
GROSS PUBLIC DEBT OF U.S. TREASURY
NOTE. Data from Treasury Bulletin (U.S. Treasury Department),
Types and Ownership
Billions of dollars, end of period
1982
Type and holder
1979
1978
1983
1981
1980
Dec.
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
14
By type
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable 1
State and local government series
Foreign issues 3
Government
Public
Savings bonds and notes
Government account series4
15 Non-interest-bearing debt
Jan.
Feb.
Mar.
Apr.
789.2
845.1
930.2
1,028.7
1,197.1
1,201.0
1,215.3
1,244.5
1,247.9
782.4
487.5
161.7
265.8
60.0
294.8
2.2
24.3
29.6
28.0
1.6
80.9
157.5
844.0
530.7
172.6
283.4
74.7
313.2
2.2
24.6
28.8
23.6
5.3
79.9
177.5
928.9
623.2
216.1
321.6
85.4
305.7
1,027.3
720.3
245.0
375.3
99.9
307.0
1,195.5
881.5
311.8
465.0
104.6
314.0
1,199.6
488.7
308.1
473.0
107.6
310.9
1,213.7
907.7
314.9
481.3
111.5
306.1
1,243.0
937.8
331.9
494.4r
111.4
305.2
1,242.1
935.5
325.9
494.9
114.6
306.6
23.8
24.0
17.6
6.4
72.5
185.1
23.0
19.0
14.9
4.1
68.1
196.7
25.7
14.7
13.0
1.7
68.0
205.4
25.6
14.0
12.7
1.3
68.1
203.0
25.7
12.7
11.4
1.3
68.3
199.1
27.1
12.4
11.1
1.3
68.5
197.0
28.0
12.0
10./
1.3
68.8
197.6
6.8
1.2
1.3
1.4
1.6
1.4
1.6
1.5
5.9
170.0
109.6
508.6
93.2
5.0
15.7
19.6
64.4
187.1
117.5
540.5
96.4
4.7
16.7
22.9
69.9
192.5
121.3
616.4
116.0
5.4
20.1
'25.7
78.8
203.3
131.0
694.5
109.4
5.2
19.1
37.8
85.6
209.4
139.3
848.2
131.4
n.a.
34.8
n.a.
n.a.
80.7
30.3
137.8
58.9
79.9
36.2
124.4
90.1
72.5
56.7
127.7
106.9
68.0
75.6
141.4
152.3
68.3
47.3
152.0
n.a.
5
By holder
16 U.S. government agencies and trust funds
17 Federal Reserve Banks
18 Private investors
19
Commercial banks
20
Mutual savings banks
Insurance companies
21
22 Other companies
23 State and local governments
24
25
26
27
Individuals
Savings bonds
Other securities
Foreign and international6
Other miscellaneous investors 7
1. Includes (not shown separately): Securities issued to the Rural Electrification Administration, depository bonds, retirement plan bonds, and individual
retirement bonds.
2. These nonmarketable bonds, also known as Investment Series B Bonds,
may be exchanged (or converted) at the owner's option for IVi percent, 5-year
marketable Treasury notes. Convertible bonds that have been so exchanged are
removed from this category and recorded in the notes category (line 5).
3. Nonmarketable dollar-denominated and foreign currency-denominated series held by foreigners.
4. Held almost entirely by U.S. government agencies and trust funds.
n a.
n a.
n a.
n a.
5. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.
6. Consists of investments of foreign balances and international accounts in the
United States.
7. Includes savings and loan associations, nonprofit institutions, corporate
pension trust funds, dealers and brokers, certain government deposit accounts,
and government sponsored agencies.
NOTE. Gross public debt excludes guaranteed agency securities.
Data by type of security from Monthly Statement of the Public Debt of the
United States (U.S. Treasury Department); data by holder from Treasury
Bulletin.
A34
1.42
DomesticNonfinancialStatistics • May 1983
U.S. GOVERNMENT SECURITIES DEALERS
Transactions
Par value; averages of daily figures, in millions of dollars
1983
Item
1979
1980
1983, week ending Wednesday
1981
Jan.
Feb.
Mar.P
Mar. 23 Mar. 30
Apr. 6
Apr. 13
Apr. 20
Apr. 27
1
Immediate delivery1
U.S. government securities
13,183
18,331
24,728
35,736
40,618
39,280
40,663
37,396
35,286
36,209
39,680
39,318
2
3
4
5
6
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
7,915
454
2,417
1,121
1,276
11.413
421
3,330
1,464
1,704
14,768
621
4,360
2,451
2,528
19,443
821
6,975
4,263
4,234
20,355
706
9,247
5,272
5,038
20,624
530
8,095
5,781
4,249
21,009
649
11,359
4,262
3,384
19,283
403
6,213
6,314
5,183
22,486
636
4,844
3,697
3,622
23,128
587
5,781
3,374
3,339
22,239
731
7,011
4,867
4,833
20,877
580
10,251
3,771
3,839
By type of customer
U.S. government securities
dealers
U.S. government securities
brokers
All others 2
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures transactions3
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions 4
U.S. government securities
Federal agency securities
7
8
9
10
11
12
13
14
15
16
17
18
1,448
1,484
1,640
2,219
1,905
1,837
2,011
1,617
1,738
3,338
1,824
2,124
5,170
6,564
2,723
1,764
7,610
9,237
3,258
2,472
11,750
11,337
3,306
4,477
1,807
6,128
17,130
16,387
5,199
4,747
2,827
7,911
20,025
18,688
5,005
4,404
2,598
7,806
19,174
18,269
5,055
3,958
2,393
7,646
20,179
18,473
3,901
3,570
2,381
7,741
17,545
18,234
4,030
3,431
2,049
7,916
16,913
16,635
4,691
3,704
2,520
9,875
16,097
16,774
4,920
4,864
3,050
8,355
19,926
17,930
5,773
4,329
3,313
8,736
19,129
18,065
6,191
4,798
2,909
7,746
3,523
1,330
234
5,173
1,672
169
6,277
2,086
236
6,174
2,223
274
6,445
2,204
198
5,257
1,984
241
6,029
1,431
165
5,477
1,428
144
6,237
2,107
193
6,071
1,842
241
365
1,370
1,035
1,136
1,699
1,175
1,540
1,423
2,427
1,420
1,514
1,086
1,135
1,347
1,590
1,642
1,046
1,770
1,249
1,131
n.a.
n. a.
from the date of the transaction for government securities (Treasury bills, notes,
and bonds) or after 30 days for mortgage-backed agency issues.
NOTE. Averages for transactions are based on number of trading days in the
period.
Transactions are market purchases and sales of U.S. government securities
dealers reporting to the Federal Reserve Bank of New York. The figures exclude
allotments of, and exchanges for, new U.S. government securities, redemptions
of called or matured securities, purchases or sales of securities under repurchase
agreement, reverse repurchase (resale), or similar contracts.
1. Before 1981, data for immediate transactions include forward transactions.
2. Includes, among others, all other dealers and brokers in commodities and
securities, nondealer departments of commercial banks, foreign banking agencies,
and the Federal Reserve System.
3. Futures contracts are standardized agreements arranged on an organized
exchange in which parties commit to purchase or sell securities for delivery at a
future date.
4. Forward transactions are agreements arranged in the over-the-counter
market in which securities are purchased (sold) for delivery after 5 business days
1.43
U.S. GOVERNMENT SECURITIES DEALERS
Positions and Financing
Averages of daily figures, in millions of dollars
1983
Item
1979
1980
1983, week ending Wednesday
1981
Jan.
Feb.
Mar.P
Mar. 9
Mar. 16
Mar. 23
Mar. 30
Apr. 6
Positions
1
?
3
4
<
i
6
7
8
9
10
11
12
13
14
15
Net immediate1
U.S. government securities
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures positions
Treasury bills
Treasury coupons
Federal agency securities
Forward positions
U.S. government securities
Federal agency securities
3,223
3,813
-325
-455
160
30
1,471
2,794
n a.
4,306
- ,103
-1,062
434
166
665
797
3,115
n a.
9,033
6,485
-1,526
1,488
292
2,294
2,277
3,435
1,746
2,658
14,670
9,953
-230
3,091
-193
2,049
5,125
6,180
3,551
3,436
14,174
10,534
-428
2,726
-291
1,633
4,455
5,683
2,901
2,892
12,267
9,786
-11
1,633
-557
1,417
4,742
6,099
2,866
3,163
16,566
13,273
106
1,638
-263
1,812
5,081
6,293
3,139
3,722
8,536
8,114
21
222
-1,447
1,627
5,394
6,178
2,945
3,183
10,263
9,555
-30
1,573
-1,584
749
4,475
5,793
2,667
3,047
8,895
7,197
-44
955
-119
906
4,745
6,139
2,400
2,635
7,473
7,063
-350
71
-523
1,212
4,937
5,727
2,400
3,035
-8,934
-2,733
522
-7,108
-2,142
-343
-3,221
-1,217
-134
-1,338
-1,869
-72
-2,280
-1,785
-179
400
-1,869
23
1,144
-1,689
25
749
-2,024
-52
-2,103
-2,161
-108
-603
-451
-1,397
-2,329
-1,061
-1,962
-1,690
-1,869
-970
-1,695
-2,689
-2,741
-2,790
-1,903
-1,027
-1,511
-813
-1,664
Financing2
Reverse repurchase agreements
Overnight and continuing....
Term agreements
Repurchase agreements4
18 Overnight and continuing
19 Term agreements
16
17
For notes see opposite page.
14,568
32,048
27,038
49,013
24,136
49,425
19,668
49.637
19,175
49,386
20,775
48,737
18,304
50,234
19,225
50,509
35,919
29,449
59,753
43,846
56,033
42,891
51,228
43,450
53,666
42,924
51,976
42,104
48,498
44,364
47,605
44,157
Federal Finance
1.44
FEDERAL A N D FEDERALLY SPONSORED CREDIT AGENCIES
A3 3
Debt Outstanding
Millions of dollars, end of period
1983
1982
Agency
1979
1981
1980
Aug.
1 Federal and federally sponsored agencies'
2 Federal agencies
3 Defense Department 2
4 Export-Import Bank 3 ' 4
5 Federal Housing Administration5
6 Government National Mortgage Association
participation certificates 6
7 Postal Service7
8 Tennessee Valley Authority
9 United States Railway Association7
10 Federally sponsored agencies1
11 Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association
14 Federal Land Banks
15 Federal Intermediate Credit Banks
16 Banks for Cooperatives
17 Farm Credit Banks 1
18 Student Loan Marketing Association
19 Other
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
227,210 243,623
245,951
244,599
243,535
247,119
247,887
245,108
31,806
484
13,339
413
32,280
399
13,918
345
32,606
388
14,042
335
32,713
377
14,000
323
32,772
364
13,999
311
33,055
354
14,218
288
33,018
346
14,267
282
33,045
336
14,255
281
2,715
1,538
13,115
202
2,165
1,471
13,775
207
2,165
1,471
14,010
195
2,165
1,471
14,185
192
2,165
1,471
14,270
192
2,165
1,471
14,365
194
2,165
1,471
14,365
122
2,165
1,471
14,415
122
195,404 211,343 213,345
61,251
58,090 61,747
2,604
3,099
3,000
58,749 65,733
68,130
9,717
7,652
7,652
1,388
926
926
220
220
220
60,034 65,657
65,553
6,307r
4,600
6,61 V
2
2
2
212,886
60,904
3,000
67,916
6,813
926
220
66,449
6,657
1
210,763
60,356
3,000
66,852
6,813
926
220
65,877
6,718
1
214,064
61,447
3,000
70,052
6,813
926
220
65,014
6,591
1
214,869
59,969
3,000
72,247
5,802
926
220
66,360
6,404
1
212,063
58,380
2,460
72,221
5,802
926
220
65,796
6,257
1
110,698 122,623
124,357
125,064
125,707
126,424
126,587
126,623
13,823
1,221
12,050
207
13,954
1,221
12,285
195
13,954
1,221
12,460
192
13,954
1,221
12,545
192
14,177
1,221
12,640
194
14,177
1,221
12,640
122
14,177
1,221
12,690
122
53,311
15,916
21,095
53,736
16,282
21,684
53,661
16,600
26,976
53,661
16,750
27,384
53,261
17,157
27,774
53,056
17,330
28,041
52,431
17,502
28,480
163,290
193,229
24,715
738
9,191
537
28,606
610
11,250
477
2,979
1,837
8,997
436
2,817
1,770
11,190
492
138,575
33,330
2,771
48,486
16,006
2,676
584
33,216
1,505
1
164,623
41,258
2,536
55,185
12,365
1,821
584
48,153
2,720
1
67,383
87,460
8,353
1,587
7,272
436
10,654
1,520
9,465
492
12,741
1,288
11,390
202
32,050
6,484
9,696
39,431
9,196
13,982
48,821
13,516
18,140
MEMO:
20 Federal Financing Bank debt 1 '
21
22
23
24
Lending to federal and federally sponsored
agencies
Export-Import Bank4
Postal Service7
Tennessee Valley Authority
United States Railway Association7
Other Lending9
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other
1. In September 1977 the Farm Credit Banks issued their first consolidated
bonds, and in January 1979 they began issuing these bonds on a regular basis to
replace the financing activities of the Federal Land Banks, the Federal Intermediate Credit Banks, and the Banks for Cooperatives. Line 17 represents those
consolidated bonds outstanding, as well as any discount notes that have been
issued. Lines 1 and 10 reflect the addition of this item.
2. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
3. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
4. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
5. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
6. Certificates of participation issued prior to fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing
NOTES TO TABLE 1.43
1. Immediate positions are net amounts (in terms of par values) of securities
owned by nonbank dealer firms and dealer departments of commercial banks on a
commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase (RPs). The maturities of some
repurchase agreements are sufficiently long, however, to suggest that the securities involved are not available for trading purposes. Securities owned, and hence
dealer positions, do not include securities to resell (reverse RPs). Before 1981,
data for immediate positions include forward positions.
2. Figures cover financing involving U.S. government and federal agency
securities, negotiable CDs, bankers acceptances, and commercial paper.
and Urban Development; Small Business Administration; and the Veterans
Administration.
7. Off-budget.
8. 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.
9. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any
particular agency being generally small. The Farmers Home Administration item
consists exclusively of agency assets, while the Rural Electrification Administration entry contains both agency assets and guaranteed loans.
3. Includes all reverse repurchase agreements, including those that have been
arranged to make delivery on short sales and those for which the securities
obtained have been used as collateral on borrowings, i.e., matched agreements.
4. Includes both repurchase agreements undertaken to finance positions and
"matched book" repurchase agreements.
NOTE. Data for positions are averages of daily figures, in terms of par value,
based on the number of trading days in the period. Positions are shown net and are
on a commitment basis. Data for financing are based on Wednesday figures, in
terms of actual money borrowed or lent.
A36
1.45
DomesticNonfinancialStatistics • May 1983
NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
1982
Type of issue or issuer,
or use
1980
1981
July
1 All issues, new and refunding 1
1983
1982
Aug.
Sept.
Oct.
Nov.
Dec.
Jan/
48,367
47,732
77,296
5,583
6,510
6,497
8,260
9,850
9,085
3,625
14,100
38
34,267
57
12,394
34
35,338
55
20,881
225
56,415
461
974
22
4,609
49
1,683
25
4,827
52
1,701
30
4,796
54
2,262
30
5,998
57
3,352
34
6,498
57
1,543
37
7,542
62
847
0
2,778
0
Type of issuer
6 State
7 Special district and statutory authority
8 Municipalities, counties, townships, school districts
5,304
26,972
16,090
5,288
27,499
14,945
8,352
44,111
24,833
257
3,695
1,631
835
3,654
2,021
1,077
3,455
1,965
1,010
5,101
2,149
1,088
5,269
3,493
169
5,824
3,092
237
2,100
1,288
9 Issues for new capital, total
46,736
46,530
73,040
5,396
6,083
6,294
7,073
9,106
8,886
3,127
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
4,572
2,621
8,149
19,958
3,974
7,462
4,547
3,447
10,037
12,729
7,651
8,119
6,262
6,232
14,154
25,821
7,751
12,820
293
118
1,272
2,705
562
446
516
768
685
2,500
728
886
830
551
283
2,542
1,048
1,040
532
636
1,335
2,619
556
1.395
716
1,286
1,961
2,204
729
2,210
810
1,338
1,830
2,963
1,066
879
352
49
956
817
306
647
2
3
4
5
10
11
12
13
14
15
Type of issue
General obligation
U.S. government loans2
Revenue
U.S. government loans2
1. Par amounts of long-term issues based on date of sale.
2. Consists of tax-exempt issues guaranteed by the Farmers Home Administration.
1.46
SOURCE. Public Securities Association.
NEW SECURITY ISSUES of Corporations
Millions of dollars
1982
Type of issue or issuer,
or use
1980
1981'
1982'
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1 All issues'
73,694
69,991
83,788
4,928
6,222
9,318
8,247
9,989'
8,802
9,830
2 Bonds
53,206
44,642
53,226
3,228
3,934
6,553
5,762
7,121'
5,412
5,636
Type of offering
3 Public
4 Private placement
41,587
11,619
37,653
6,989
43,428
9,798
2,398
830
2,868
1,066
5,546
1,007
5,308
454
6,426'
695
4,927
485
4,264
1,372
15,409
6,693
3,329
9,557
6,683
11,534
12,325
5,229
2,052
8,963
4,280
11,793
13,307
5,681
1,474
12,155
2,265
18,344
462
343
82
761
176
1,403
1,638
493
58
717
84
944
1,602
1,202
402
934
205
2,208
1,730
481
64
1,021
311
2,156
2,044
417
285
1,663
208
2,504
2,138
523
88
1,246
115
1,302
1,204
565
120
944
372
2,431
11 Stocks2
20,489
25,349
30,562
1,700
2,288
2,765
2,485
2,868
3,390
4,194
Type
12 Preferred
13 Common
3,631
16,858
1,797
23,552
5,113
25,449
67
1,633
644
1,644
622
2,143
522
1,963
611
2,257
573
2,817
421
3,773
4,839
5,245
549
6,230
567
3,059
5,074
7,557
779
5,577
1,778
4,584
5,649
7,770
709
7,517
2,227
6,690
503'
317
52
277
17
534
187
615
5
331
96
1,054
717r
375
62
759
495
357
345
742
84
1,003
4
307
666
640
80
620
33
829
481
1,024
225
752
14
894
921'
693
22
742
1,361
455
5
6
7
8
9
10
14
15
16
17
18
19
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures, which represent gross proceeds of issues maturing in more than one
year, sold for cash in the United States, are principal amount or number of units
multiplied by offering price. Excludes offerings of less than $100,000, secondary
offerings, undefined or exempted issues as defined in the Securities Act of 1933.
employee stock plans, investment companies other than closed-end, intracorporate transactions, and sales to foreigners.
2. Beginning in August 1981, gross stock offerings include new equity volume
from swaps of debt for equity.
SOURCE. Securities and Exchange Commission and the Board of Governors of
the Federal Reserve System.
Corporate Finance
1.47
OPEN-END INVESTMENT COMPANIES
A37
Net Sales and Asset Position
Millions of dollars
1982
Item
1981
1983
1982
Aug.
Sept.
Nov.
Oct.
Dec.
Jan.
Feb.
Mar.
INVESTMENT COMPANIES 1
1 Sales of own shares 2
2 Redemptions of own shares 3
3 Net sales
20,596
15,866
4,730
45,675
30,078
15,597
4,322
2,335
1,987
4,709
3,052
1,657
5,668
3,046
2,622
5,815
3,493
2,322
5,291
4,835
456
8,095
4,233
3,862
6,115
3,510
2,605
7,927
5,077
2,850
4 Assets 4
Cash position5
5
6
Other
55,207
5,277
49,930
76,741
5,999
70,742
62,212
6,039
56,173
63,783
5,556
58,227
70,964
5,948
65,016
74,864
5,838
69,026
76,841
6,040
70,801
80,384
6,943
73,441
84,981
7,404
77,577
89,342
7,764
81,578
1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment of capital gains distributions and share issue of conversions from one fund to
another in the same group.
3. Excludes share redemption resulting from conversions from one fund to
another in the same group.
4. Market value at end of period, less current liabilities.
1.48
5. Also includes all U.S. government securities and other short-term debt
securities.
NOTE. Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the
Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
CORPORATE PROFITS A N D THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1981
Account
1980
1981
1982
1982'
QL
Q2
Q3
Q4
QL
Q2
Q3
Q4
2
3
4
5
6
Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
181.6
242.4
84.6
157.8
58.1
99.7
190.6
232.1
81.2
150.9
65.1
85.8
160.8
174.9
57.7
117.1
70.3
46.9
200.3
253.1
91.5
161.6
61.5
100.1
185.1
225.4
79.2
146.2
64.0
82.2
193.1
233.3
82.4
150.9
66.8
84.1
183.9
216.5
71.6
144.9
68.1
76.8
157.1
171.6
56.7
114.9
68.8
46.1
155.4
171.7
55.3
116.3
69.3
47.0
166.2
180.3
60.9
119.4
70.5
48.8
164.6
175.9
58.0
117.9
72.4
45.5
7
8
Inventory valuation
Capital consumption adjustment
-43.0
-17.8
-24.6
-16.8
-9.2
-4.9
-35.5
-17.3
-22.8
-17.5
-23.0
-17.1
-17.1
-15.5
-4.4
-10.1
-9.4
-6.9
-10.3
-3.8
-12.6
1.3
1
SOURCE. Survey of Current Business (U.S. Department of Commerce).
A38
1.49
DomesticNonfinancialStatistics • May 1983
NONFINANCIAL CORPORATIONS
Current Assets and Liabilities
Billions o f dollars, e x c e p t for ratio
1981
Account
1976
1977
1978
1979
1982
1980
Q4
Ql
Q2
Q3
Q4
1 C u r r e n t assets
827.4
912.7
1,043.7
1,218.2
1,333.5
1,426.8
1,424.6
1,422.6
1,446.9
1,430.9
2
3
4
5
6
88.2
23.5
292.9
342.5
80.3
97.2
18.2
330.3
376.9
90.1
105.5
17.3
388.0
431.6
101.3
118.0
17.0
461.1
505.5
116.7
127.1
19.3
510.6
543.7
132.7
131.9
18.0
536.2
587.1
153.6
122.0
16.9
539.2
592.7
153.7
124.4
17.1
536.8
588.4
155.8
126.9
19.6
539.7
598.0
162.7
143.7
23.1
517.0
577.5
169.6
7 C u r r e n t liabilities
495.1
557.1
669.3
807.8
890.9
979.5
988.0
987.5
1,005.2
976.5
8 Notes and accounts payable
9 Other
282.1
213.0
317.6
239.6
382.9
286.4
461.2
346.6
515.2
375.7
562.4
417.1
555.5
432.5
555.1
432.4
559.7
445.5
548.7
427.8
10 Net working capital
332.4
355.5
374.4
410.5
442.6
447.3
436.6
435.1
441.7
454.4
11 MEMO: Current ratio 1
1.671
1.638
1.559
1.508
1.497
1.457
1.442
1.441
1.439
1.465
Cash
U . S . government securities
N o t e s and accounts receivable
Inventories
Other
1. Ratio of total current assets to total current liabilities.
All data in this table reflect the most current benchmarks. Complete data are
available upon request from the Flow of Funds Section, Division of Research and
Statistics.
NOTE. For a description of this series, see "Working Capital of Nonfinancial
Corporations" in the July 1978 BULLETIN, pp. 533-37.
SOURCE. Federal Trade Commission.
1.50
TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment
B i l l i o n s o f d o l l a r s ; q u a r t e r l y d a t a are at s e a s o n a l l y a d j u s t e d a n n u a l r a t e s .
1981
Industry 1
1981
1982
1982
1983
19831
Q4
1 Total n o n f a r m business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Trade and services
11 Communication and other 2
Q2
Q3
Q4
Ql1
Q2 1
321.49
316.43
310.92
327.83
327.72
323.22
315.79
302.77
302.25
302.20
61.84
64.95
56.44
63.23
54.22
61.69
60.78
66.14
60.84
67.48
59.03
64.74
57.14
62.32
50.50
59.59
52.76
60.05
50.85
60.45
16.86
15.45
15.46
16.81
17.60
16.56
14.63
13.31
14.56
14.62
4.24
3.81
4.00
4.38
3.93
3.64
4.21
3.33
3.46
4.18
4.82
4.12
4.56
3.20
4.23
4.73
3.54
4.06
3.94
4.11
3.24
4.31
4.85
3.25
3.69
3.71
3.56
4.49
3.64
3.46
29.74
8.65
86.33
41.06
33.40
8.55
86.95
40.46
33.09
7.91
87.78
39.78
31.14
8.60
88.33
42.92
30.95
9.17
8?. 80
41.89
32.26
9.14
88.85
40.33
34.98
8.40
87.31
39.73
35.12
7.77
84.00
40.06
33.38
7.61
85.38
37.55
32.94
8.43
85.23
38.09
of Current
Business
1. Anticipated by business.
2. "Other" consists of construction; social services and membership organizations; and forestry, fisheries, and agricultural services.
Ql
SOURCE. Survey
( U . S . Dept. of Commerce).
Corporate Finance
1.51
DOMESTIC FINANCE COMPANIES
A39
Assets and Liabilities
Billions of dollars, end of period
1982
1981
Account
1977
1979
1978
1980
Q3
Ql
Q4
Q2
Q4
Q3
ASSETS
4
5
6
7
8
Accounts receivable, gross
Consumer
Business
Total
LESS: Reserves for unearned income and losses....
Accounts receivable, net
Cash and bank deposits
Securities
All other
9
Total assets
1
2
65.7
70.3
136.0
20.0
116.0
73.6
72.3
145.9
23.3
122.6
84.5
76.9
161.3
27.7
133.6
85.5
80.6
166.1
28.9
137.2
85.1
80.9
166.0
29.1
136.9
88.0
82.6
170.6
30.2
140.4
88.3
82.2
170.5
30.4
140.1
89.5
81.0
170.4
30.5
139.8
24.91
27.5
34.5
34.2
35.0
37.3
39.1
39.7
122.4
140.9
150.1
168.1
171.4
171.9
177.8
179.2
179.5
5.9
29.6
6.5
34.5
8.5
43.3
13.2
43.4
14.7
51.2
15.4
51.2
15.4
46.2
14.5
50.3
16.8
46.7
18.6
45.8
6.2
36.0
11.5
8.1
43.6
12.6
8.2
46.7
14.2
7.5
52.4
14.3
11.9
50.7
17.1
9.6
54.8
17.8
9.0
59.0
19.0
9.3
60.3
18.9
9.9
60.9
20.5
8.7
63.5
18.7
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
104.3
1
Y
J
LIABILITIES
12
13
14
Bank loans
Commercial paper
Debt
Short-term, n.e.c
Long-term, n.e.c
Other
15
Capital, surplus, and undivided profits
16
Total liabilities and capital
10
11
15.1
17.2
19.9
19.4
22.4
22.8
23.3
24.5
24.5
24.2
104.3
122.4
140.9
150.1
168.1
171.4
171.9
177.8
179.2
179.5
1. Beginning Ql 1979, asset items on lines 6, 7, and 8 are combined.
NOTE. Components may not add to totals due to rounding.
1.52
DOMESTIC FINANCE COMPANIES
Business Credit
Millions of dollars, seasonally adjusted except as noted
Changes in accounts
receivable
Type
Accounts
receivable
outstanding
Feb. 28,
1983'
1982
Dec.
Extensions
1982
1983
Jan.
Feb.
Repayments
1983
1982
1983
Dec.
Jan.
Feb.
Dec.
Jan.
Feb.
1 Total
81,580
-571
1,030
126
20,031
22,808
22,458
20,602
21,778
22,332
2
3
4
5
12,948
12,568
27,771
142
-1,087
222
269
182
-41
396
115
381
1,036
4,965
1,420
1,230
6,458
1,308
1,336
6,643
1,477
894
6,052
1,198
961
6,276
1,349
940
6,258
1,096
9,161
19,132
-350
502
501
119
-243
-523
10,493
2,117
12,286
1,526
11,634
1,368
10,843
1,615
11,785
1,407
11,877
1,891
Retail automotive (commercial vehicles)
Wholesale automotive
Retail paper on business, industrial, and farm equipment
Loans on commercial accounts receivable and factored commercial accounts receivable
6 All other business credit
1. Not seasonally adjusted.
A40
1.53
DomesticNonfinancialStatistics • May 1983
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1982
Item
1980
1981
1983
1982
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
Conventional mortgages on new homes
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)2
Contract rate (percent per annum)
Yield (percent per annum)
1 FHLBB series5
8 HUD series4
83.4
59.2
73.2
28.2
2.09
12.25
90.4
65.3
74.8
27.7
2.67
14.16
94.6
69.8
76.6
27.6
2.95
14.47
95.0
71.6
78.7
28.1
3.04
14.34
99.1
74.4
77.9
28.4
2.74
13.86
97.9
75.6
79.0
27.9
2.76
13.26
91.8
67.6
75.2
26.9
2.98
13.09
88.9
65.4
75.2
26.5
2.46
13.00
88.4
66.6
77.9
27.2
2.78
12.62
80.1
60.5
76.8
24.2
2.21
12.97
12.65
13.95
14.74
16.52
15.12
15.79
14.98
15.05
14.41
13.95
13.81
13.80
13.69
13.62
13.49
13.44
13.16
13.18
13.41
13.17
13.44
12.55
16.31
15.29
15.31
14.68
14.03
13.57
12.99
12.83
12.82
12.66
12.80
12.60
12.87
12.06'
12.65
11.94
12.68
11.87
14.11
14.43
1
2
3
4
5
6
16.70
16.64
15.95
15.36
13.92
13.75
13.72
n.a.
n.a.
SECONDARY MARKETS
Yield (percent per annum)
9 FHA mortgages (HUD series)5
10 GNMA securities6
FNMA auctions7
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
13 Total
14 FHA/VA-insured
15 Conventional
55,104
37,365
17,725
58,675
39,341
19,334
66,031
39,718
26,312
68,841
39,871
28,970
69,152
39,523
29,629
70,126
39,174
30,952
71,814
39,057
32,757
73,106
38,924
34,182
73,555
38,768
34,788
73,666
38,409
35,257
Mortgage transactions (during period)
16 Purchases
17 Sales
8,099
0
6,112
2
15,116
2'
1,670
0
1,449
V
1,681 r
l
2,495
2,045
0
1,594
V
1,433
777
Mortgage commitments8
18 Contracted (during period)
19 Outstanding (end of period)
8,083
3,278
9,331
3,717
22,105
7,606
1,482
6,587
1,426
6,268
2,795
7,286
3,055
7,606
2,006
7,487
785
6,475
1,184
6,187
8,605.4
4,002.0
2,487.2
1,478.0
307.4
104.3
16.4
0
2.5
0
27.0
0
4.6
0
2.0
0
n.a.
n.a.
n.a.
n.a.
3,639.2
1,748.5
2,524.7
1,392.3
445.3
237.6
27.5
0
13.6
8.9
22.1
11.4
23.2
15.3
7.8
0
1.8
n.a.
n.a.
n.a.
Mortgage holdings (end of period)9
24 Total
25 FHA/VA
26 Conventional
4,362
2,116
2,246
5,245
2,236
3,010
5,153
1,921
3,224
5,207
2,225
2,982
4,957
1,016
3,891
4,676
1,012
3,618r
4,733
1,009
3,724
4,560
1,004
3,556
4,450
1,000
3,450
4,795
995
3,800
Mortgage transactions (during period)
27 Purchases
28 Sales
3,723
2,527
3,789
3,531
23,671
24,164
1,799
1,923
2,000
2,197
1,917
2,182
3,916
3,798
1,479
1,641
1,688
1,756
2,849
2,469
Mortgage commitments10
29 Contracted (during period)
30 Outstanding (end of period)
3,859
447
6,974
3,518
28,187
7,549
2,892
10,211
2,506
10,572
1,714
10,407
1,068
7,549
2,059
8,098
868
7,238
1,438
5,845
Auction of 4-month commitments to buy
Government-underwritten loans
Offered
Accepted
Conventional loans
22 Offered
23 Accepted
20
21
FEDERAL H O M E LOAN MORTGAGE CORPORATION
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups. Compiled by the Federal Home Loan Bank
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages, rounded to the nearest 5 basis points; from Department of Housing and
Urban Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal Housing
Administration-insured first mortgages for immediate delivery in the private
secondary market. Any gaps in data are due to periods of adjustment to changes in
maximum permissible contract rates.
6. Average net yields to investors on Government National Mortgage Association guaranteed, mortgage-backed, fully modified pass-through securities, assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying the
prevailing ceiling rate. Monthly figures are unweighted averages of Monday
quotations for the month.
7. Average gross yields (before deduction of 38 basis points for mortgage
servicing) on accepted bids in Federal National Mortgage Association's auctions
of 4-month commitments to purchase home mortgages, assuming prepayment in
12 years for 30-year mortgages. No adjustments are made for FNMA commitment
fees or stock related requirements. Monthly figures are unweighted averages for
auctions conducted within the month. FNMA's commitment auctions were
discontinued in March 1983.
8. Includes some multifamily and nonprofit hospital loan commitments in
addition to 1- to 4-family loan commitments accepted in FNMA's free market
auction system, and through the FNMA-GNMA tandem plans.
9. Includes participation as well as whole loans.
10. Includes conventional and government-underwritten loans. FHLMC's
mortgage commitments and mortgage transactions include activity under mortgage/securities swap programs, while the corresponding data for FNMA exclude
swap activity.
Real Estate Debt
1.54
A41
MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
1981
Type of holder, and type of property
1980
QK
Q4'
1
2
3
4
5
All holders
1- to 4-family
Multifamily
Commercial
Farm
6 Major financial institutions
7 Commercial banks 1
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
1982
1983
1982'
1981'
Q2'
Q3'
Q4'
Ql
1,471,786
986,979
137,134
255,655
92,018
1,583,264
1,065,294
136,354
279,889
101,727
1,647,637
1,106,863
136,515
297,369
106,890
1,583,264
1,065,294
136,354
279,889
101,727
1,602,855
1,076,930
137,712
284,306
103,907
1,624,279
1,089,522
138,332
290,951
105,474
1,632,161
1,097,507
136,508
291,740
106,406
1,647,637
1,106,863
136,515
297,369
106,890
1,672,408
1,127,786
137,435
299,938
107,249
997,168
263,030
160,326
12,924
81,081
8,699
1,040,827
284,536
170,013
15,132
91,026
8,365
1,020,527
301,742
177,122
15,841
100,269
8,510
1,040,827
284,536
170,013
15,132
91,026
8,365
1,041,702
289,365
171,350
15,338
94,256
8,421
1,042,904
294,022
172,596
15,431
97,522
8,473
1,027,027
298,342
175,126
15,666
99,050
8,500
1,020,527
301,742
177,122
15,841
100,269
8,510
1,021,907
305,672
179,430
16,147
101,575
8,520
99,865
67,489
16,058
16,278
40
99,997
68,187
15,960
15,810
40
94,452
64,095
15,037
15,292
28
99,997
68,187
15,960
15,810
40
97,464
66,305
15,536
15,594
29
96,346
65,381
15,338
15,598
29
94,382
63,849
15,026
15,479
28
94,452
64,095
15,037
15,292
28
93,697
63,582
14,917
15,170
28
12
13
14
15
16
Mutual savings banks
1- to 4-family
Multifamily
Commercial
Farm
17
18
19
20
Savings and loan associations
1- to 4-family
Multifamily
Commercial
503,192
419,763
38,142
45,287
518,547
433,142
37,699
47,706
482,414
397,537
36,023
48,854
518,547
433,142
37,699
47,706
516,111
430,178
37,986
47,947
512,997
425,890
38,321
48,786
493,899
410,035
36,894
46,970
482,414
397,537
36,023
48,854
479,405
395,026
35,812
48,567
21
22
23
24
25
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
131,081
17,943
19,514
80,666
12,958
137,747
17,201
19,283
88,163
13,100
141,919
16,743
18,847
93,501
12,828
137,747
17,201
19,283
88,163
13,100
138,762
17,086
19,199
89,529
12,948
139,539
16,451
18,982
91,113
12,993
140,404
16,865
18,967
91,640
12,932
141,919
16,743
18,847
93,501
12,828
143,133
16,836
19,054
94,618
12,625
114,300
4,642
704
3,938
126,094
4,765
693
4,072
138,185
4,227
676
3,551
126,094
4,765
693
4,072
128,698
4,438
689
3,749
131,456
4,669
688
3,981
134,449
4,110
682
3,428
138,185
4,227
676
3,551
139,796
3,785
665
3,120
26 Federal and related agencies
27 Government National Mortgage Association...
28
1- to 4-family
29
Multifamily
30
31
32
33
34
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
3,492
916
610
411
1,555
2,235
914
473
506
342
1,786
783
218
377
408
2,235
914
473
506
342
2,469
715
615
499
640
1,335
491
179
256
409
947
302
46
164
435
1,786
783
218
377
408
1,850
800
250
400
400
35
36
37
Federal Housing and Veterans
Administration
1- to 4-family
Multifamily
5,640
2,051
3,589
5,999
2,289
3,710
5,228
1,980
3,248
5,999
2,289
3,710
6,003
2,266
3,737
5,908
2,218
3,690
5,362
2,130
3,232
5,228
1,980
3,248
5,156
1,883
3,273
38
39
40
Federal National Mortgage Association
1- to 4-family
Multifamily
57,327
51,775
5,552
61,412
55,986
5,426
71,814
66,500
5,314
61,412
55,986
5,426
62,544
57,142
5,402
65,008
59,631
5,377
68,841
63,495
5,346
71,814
66,500
5,314
73,666
68,370
5,296
41
42
43
Federal Land Banks
1- to 4-family
Farm
38,131
2,099
36,032
46,446
2,788
43,658
50,350
3,068
47,282
46,446
2,788
43,658
47,947
2,874
45,073
49,270
2,954
46,316
49,983
3,029
46,954
50,350
3,068
47,282
50,544
3,059
47,485
44
45
46
Federal Home Loan Mortgage Corporation....
1- to 4-family
Multifamily
5,068
3,873
1,195
5,237
5,181
56
4,780
4,733
47
5,237
5,181
56
5,297
5,240
57
5,266
5,209
57
5,166
5,116
50
4,780
4,733
47
4,795
4,740
55
47 Mortgage pools or trusts 2
48 Government National Mortgage Association...
49
1- to 4-family
50
Multifamily
142,258
93,874
91,602
2,272
163,000
105,790
103,007
2,783
216,116
118,402
115,293
3,109
163,000
105,790
103,007
2,783
172,303
108,592
105,701
2,891
183,657
111,459
108,487
2,972
198,376
114,776
111,728
3,048
216,116
118,402
115,293
3,109
235,946
128,881
125,424
3,457
16,854
13,471
3,383
19,853
19,501
352
42,964
42,560
404
19,853
19,501
352
23,970
23,610
360
28,703
28,329
374
35,132
34,739
393
42,964
42,560
404
48,008
47,575
433
717
717
14,450
14,450
717
717
2,786
2,786
4,556
4,556
8,133
8,133
14,450
14,450
18,157
18,157
31,530
16,683
2,612
5,271
6,964
36,640
18,378
3,426
6,161
8,675
40,300
20,005
4,344
7,011
8,940
36,640
18,378
3,426
6,161
8,675
36,955
18,740
3,447
6,351
8,417
38,939
19,357
4,044
6,762
8,776
40,335
20,079
4,344
7,056
8,856
40,300
20,005
4,344
7,011
8,940
40,900
20,105
4,444
7,111
9,240
218,060
138,284
27,345
26,661
25,770
253,343
167,297
27,982
30,517
27,547
272,809
181,318
30,532
32,065
28,894
253,343
167,297
27,982
30,517
27,547
260,152
172,248
29,395
30,130
28,379
266,262
177,284
29,586
30,914
28,478
272,349
182,199
30,068
31,381
28,701
272,809
181,318
30,532
32,065
28,894
274,759
182,134
31,177
32,497
28,951
51
52
53
Federal Home Loan Mortgage Corporation....
1- to 4-family
Multifamily
54
55
Federal National Mortgage Association3
1- to 4-family
56
57
58
59
60
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
61 Individual and others 4
62
1- to 4-family5
63 Multifamily
64 Commercial
65 Farm
n.a.
n.a.
1. Includes loans held by nondeposit trust companies but not bank trust
departments.
2. Outstanding principal balances of mortgages backing securities insured or
guaranteed by the agency indicated.
3. Outstanding balances on FNMA's issues of securities backed by pools of
conventional mortgages held in trust. The program was implemented by FNMA in
October 1981.
4. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and U.S. agencies for which amounts are small or
for which separate data are not readily available.
5. Includes a new estimate of residential mortgage credit provided by individfor FRASER
uals.
Digitized
NOTE. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve in conjunction with the
Federal Home Loan Bank Board and the Department of Commerce. Separation of
nonfarm mortgage debt by type of property, if not reported directly, and
interpolations and extrapolations when required, are estimated mainly by the
Federal Reserve. Multifamily debt refers to loans on structures of five or more
units.
A42
1.55
DomesticNonfinancialStatistics • May 1983
CONSUMER INSTALLMENT CREDIT' Total Outstanding, and Net ChangeA
Millions of dollars
1982
Holder, and type of credit
1980
1981
1983
1982
Sept.
Aug.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Amounts outstanding (end of period)
1 Total
313,472
331,697
344,798
334,971
337,469
336,473
338,372
344,798
343,151
340,343
342,568
By major holder
Commercial banks
Finance companies
Credit unions
Retailers 2
Savings and loans
Gasoline companies
Mutual savings banks
147,013
76,756
44,041
28,448
9,911
4,468
2,835
147,622
89,818
45,954
29,551
11,598
4,403
2,751
152,069
94,322
47,253
30,202
13,891
4,063
2,998
148,438
93,207
46,154
26,751
12,833
4,714
2,874
149,801
93,357
46,846
26,829
13,051
4,669
2,916
149,528
92,541
46,645
27,046
13.457
4,322
2,934
149,651
93,462
46,832
27,639
13,672
4,141
2,975
152,069
94,322
47,253
30,202
13,891
4,063
2,998
150,906
95,080
46,946
28,859
14,209
4,102
3,049
150,257
93,859
46,757
27,734
14,860
3,780
3,096
151,319
94,817
47,081
27,472
15,083
3,669
3,127
By major type of credit
9 Automobile
10 Commercial banks
11
Indirect paper
Direct loans
12
13 Credit unions
14 Finance companies
116,838
61,536
35,233
26,303
21,060
34,242
125,331
58,081
34,375
23,706
21,975
45,275
130,227
58,851
35,178
23,673
22,596
48,780
128,051
57,992
34,345
23,647
22,071
47,988
128,856
58,542
34,728
23,814
22,402
47,921
128,375
58.552
34,744
23,808
22,306
47.518
129,299
58,701
34,884
23,817
22,395
48,203
130,227
58,851
35,178
23,673
22,596
48,780
129,482
57,740
(3)
(3)
22,458
49,284
129,055
57,971
(3)
(3)
22,360
48,724
130,959
58,567
(3)
(3)
22,518
49,874
15 Revolving
16 Commercial banks
1/
Retailers
18 Gasoline companies
58,352
29,765
24,119
4,468
62,819
32,880
25,536
4,403
67,184
36,688
26,433
4,063
61,293
33,509
23,070
4,714
61,845
34,017
23.159
4,669
61.836
34.110
23,404
4,322
62,362
34,233
23,988
4,141
67,184
36,688
26,433
4,063
65,562
36,282
25,178
4,102
63,372
35,481
24,111
3,780
63,091
35,533
23,889
3,669
19 Mobile home
20
Commercial banks
21
Finance companies
22
Savings and loans
23
Credit unions
17,322
10,371
3,745
2,737
469
18,373
10,187
4,494
3,203
489
18,988
9,684
4,965
3,836
503
18,918
9,967
4,916
3,544
491
19,011
9,956
4,953
3,604
498
19,043
9,860
4,971
3,716
496
19,049
9,806
4,970
3,775
498
18,988
9,684
4,965
3,836
503
19,291
9,828
4,981
3,984
498
19,374
9,806
4,960
4,112
496
19,379
9,739
4,967
4,174
499
120,960
45,341
38,769
22,512
4,329
7,174
2,835
125,174
46,474
40,049
23,490
4,015
8,395
2,751
128,399
46,846
40,577
24,154
3,769
10,055
2,998
126,709
46,970
40,303
23,592
3,681
9,289
2,874
127,748
47,286
40,483
23,946
3,670
9,447
2,916
127,219
47,006
40,052
23,844
3,642
9,741
2,934
127,662
46,911
40,289
23,939
3,651
9,897
2,975
128.399
46,846
40,577
24,154
3,769
10,055
2,998
128,816
47,056
40,815
23,990
3,681
10,225
3,049
128,542
46,999
40,175
23,901
3,623
10,748
3,096
129,139
47,480
39,976
24,064
3,583
10,909
3,127
2
3
4
5
6
/
8
74 Other
Commercial banks
2b Finance companies
( redit unions
.dtailers
ings and loans
!tual savings banks
Net change (during period) 4
31 i - ^ i
1,448
18,217
13,096
256
1,256
-131
2,015
2,418
2,725
735
2,582
B\ n.-.tjor holder
Coi nercial banks
Firumce companies
Creuit unions
Retailers 2
Savings and loans
Gasoline companies
Mutual savings banks
-7,163
8,438
-2,475
329
1,485
739
95
607
13,062
1,913
1,103
1,682
-65
-85
4,442
4,504
1,298
651
2,290
-340
251
-21
-192
157
-43
263
45
47
688
106
255
69
200
-88
26
73
-372
38
-67
274
-108
31
457
1,051
412
-51
181
-35
0
1,111
1,024
197
-91
201
-51
27
410
1,881
20
-14
412
-78
94
788
-658
43
36
677
-200
49
1,354
487
143
422
187
-35
24
flv major type of credit
Automobile
Commercial banks
Indirect paper
Direct loans
Credit unions
Finance companies
477
-5,830
-3,104
-2,726
-1,184
7,491
8,495
-3,455
-858
-2,597
914
11,033
4,898
770
803
-33
622
3,505
-380
-91
-143
52
60
-349
349
360
238
122
110
-121
-70
137
117
20
16
-223
1,534
336
134
202
211
987
1,491
527
429
98
89
875
625
-581
(3)
(3)
20
1,186
-233
321
(3)
(3)
15
-569
1,221
240
(3)
(3)
68
913
45 K., jiving
4i,
L mmercial banks
4:
'etailers
48
. ..tsoline companies
1,415
-97
773
739
4,467
3,115
1,417
-65
4,365
3,808
897
-340
199
166
-12
45
311
311
88
-88
81
223
-34
-108
39
74
0
-35
501
650
-98
-51
68
130
16
-78
-135
61
4
-200
1,177
786
426
-35
49 fvk.bile home
50
v ommercial banks
51
Finance companies
Savings and loans
53
Credit unions
483
-276
355
430
-25
1,049
-186
749
466
20
609
-508
471
633
14
177
-22
108
89
2
75
-6
18
60
3
-35
-105
-9
78
1
23
-47
5
61
4
-37
-74
-15
49
3
420
193
53
175
-1
204
26
59
120
-1
-61
-95
-23
54
3
-927
-960
592
-1,266
-444
1,056
95
4,206
1,133
1,280
975
-314
1,217
-85
3,224
372
528
662
-246
1,657
251
260
-74
49
95
-31
174
47
521
23
209
142
-19
140
26
-107
-182
-140
21
-33
196
31
419
94
59
197
-51
120
0
463
8
164
105
7
152
27
1,612
668
642
1
-30
237
94
899
380
-148
29
32
557
49
245
423
-403
72
-4
133
24
32
33
34
35
36
37
38
ill
4!
42
4.i
54 Other
Commercial banks
55
56
Finance companies
( edit unions
5/
sx
kiiailers
59
Savings and loans
60
Mutual savings banks
1. The Board's series cover most short- and intermediate-term credit extended
to individuals through regular business channels, usually to finance the purchase
of consumer goods and services or to refinance debts incurred for such purposes,
and scheduled to be repaid (or with the option of repayment) in two or more
installments.
2. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
3. Not reported after December 1982.
4. For 1982 and earlier, net change equals extensions, seasonally adjusted less
liquidations, seasonally adjusted. Beginning 1983, net change equals outstandings,
seasonally adjusted less outstandings of the previous period, seasonally adjusted.
NOTE: Total consumer noninstallment credit outstanding—credit scheduled to
be repaid in a lump sum, including single-payment loans, charge accounts, and
service credit—amounted to, not seasonally adjusted, $74.8 billion at the end of
1980, $80.6 billion at the end of 1981, and $85.9 billion at the end of 1982.
• These data have been revised from December 1980 through February 1983.
Consumer Debt
1.56
A43
TERMS OF CONSUMER INSTALLMENT CREDIT
Percent unless noted otherwise
1983
1982
Item
1980
1981
1982
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
INTEREST RATES
Commercial banks1
1
T
14.30
15.47
14.99
17.31
4
5
6
Auto finance companies
New car
Used car
16.54
18.09
17.45
17.78
16.83
18.65
18.05
18.51
14.82
19.10
16.17
20.00
16.15
20.75
17.35
20.89
16.66
20.76
12.82
20.68
12.57
20.63
12.25
20.20
12.05
19.91
12.07
19.38
45.0
34.8
45.4
35.8
46.0
34.0
46.1
37.1
45.9
37.1
46.4
36.9
46.4
36.9
46.0
38.2
45.9
37.7
45.9
37.7
87.6
94.2
86.1
91.8
85.3
90.3
85.0
91.0
85.0
91.0
87.0
91.0
87.0
90.0
86.0
90.0
86.0
90.0
84.0
91.0
6,322
3,810
7,339
4,343
8.178
4,746
7,968
4,790
8,184
4,821
8,339
4,822
8,468
4,846
8,683
4,742
8,755
4,731
8,829
4,802
15.97
17.99
17.55
18.75
14.81
17.47'
16.73
18.82'
OTHER TERMS 3
7
8
9
10
11
12
Maturity (months)
New car
Used car
Loan-to-value ratio
New car
Used car
Amount financed (dollars)
New car
Used car
1. Data for midmonth of quarter only.
2. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
3. At auto finance companies.
A44
1.57
DomesticNonfinancialStatistics • May 1983
FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1981
1980
Transaction category, sector
1978
1977
1979
1980
1981
1982
1982
H2
HI
HI
H2
HI
H2
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors
By sector and instrument
2 U.S. government
3 Treasury securities
4 Agency issues and mortgages
5 Private domestic nonfinancial sectors
6 Debt capital instruments
Tax-exempt obligations
7
8
Corporate bonds
9
10
11
12
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
13
14
15
16
17
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
18
19
20
21
22
23
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
24 Foreign net borrowing in U.S
25 Bonds
26 Bank loans n.e.c
27 Open market paper
28 U.S. government loans
29 Total domestic plus foreign
317.7
368.6
388.8
355.0
391.1
408.1
325.1
384.9
402.7
379.6
365.1
451.1
56.8
57.6
-.9
53.7
55.1
-1.4
37.4
38.8
-1.4
79.2
79.8
-.6
87.4
87.8
-.5
161.3
162.1
-.9
63.3
63.9
-.6
95.1
95.7
-.6
81.9
82.4
-.5
92.9
93.2
-.4
99.3
100.6
-1.4
223.3
223.6
-.4
260.9
169.8
21.9
21.0
314.9
198.7
28.4
20.1
351.5
216.0
29.8
22.5
275.8
204.1
35.9
33.2
303.7
175.0
32.9
23.9
246.8
168.3
60.7
22.4
261.9
203.8
30.7
37.3
289.7
204.4
41.0
29.0
320.8
196.5
35.1
24.7
286.7
153.5
30.6
23.0
265.8
157.5
53.1
13.4
227.8
179.2
68.4
31.4
94.3
7.1
18.4
7.1
112.1
9.2
21.7
7.2
120.1
7.8
23.9
11.8
96.7
8.8
20.2
9.3
78.6
4.6
25.3
9.8
55.6
7.9
16.3
5.3
96.5
8.1
20.3
10.9
96.9
9.5
20.1
7.8
95.2
5.1
21A
9.0
62.0
4.1
23.2
10.5
54.8
8.5
22.2
5.4
56.5
7.4
10.3
5.2
91.1
40.2
26.7
2.9
21.3
116.2
48.8
37.1
5.2
25.1
135.5
45.4
49.2
11.1
29.7
71.7
4.9
35.4
6.6
24.9
128.8
25.3
51.1
19.2
33.1
78.5
14.4
53.7
-1.3
11.6
58.1
-3.3
18.0
20.3
23.0
85.4
13.0
52.7
-7.1
26.7
124.3
29.4
47.7
10.7
36.5
133.2
21.2
54.6
27.6
29.8
108.3
14.4
77.1
4.4
12.4
48.6
14.4
30.4
-7.0
10.9
260.9
15.4
137.3
12.3
28.3
67.6
314.9
19.1
169.3
14.6
32.4
79.4
351.5
20.2
176.5
21.4
34.4
99.0
275.8
27.3
117.5
14.4
33.8
82.8
303.7
22.3
120.4
16.4
40.5
104.1
246.8
47.2
85.1
9.3
28.2
77.0
261.9
21.8
115.2
15.7
27.5
81.7
289.7
32.8
119.8
13.0
40.2
83.9
320.8
25.1
141.0
19.9
41.8
93.0
286.7
19.5
99.9
12.8
39.3
115.2
265.8
41.5
83.6
8.4
34.9
97.4
227.8
52.9
86.6
10.2
21.5
56.6
13.5
5.1
3.1
2.4
3.0
33.8
4.2
19.1
6.6
3.9
20.2
3.9
2.3
11.2
2.9
27.2
.8
11.5
10.1
4.7
27.3
5.5
3.7
13.9
4.3
16.2
6.5
-5.0
9.5
5.2
29.0
2.0
5.9
15.7
5.4
25.3
-.4
17.2
4.5
4.0
34.0
3.3
5.0
20.6
5.0
20.6
7.6
2.3
7.1
3.6
17.4
2.2
-.4
12.5
3.2
14.9
10.8
-9.7
6.4
7.2
331.2
402.3
409.1
382.2
418.4
424.2
354.2
410.2
436.7
400.2
382.5
465.9
Financial sectors
30 Total net borrowing by financial sectors ..
48.8
75.0
80.7
61.3
80.7
64.3
57.6
65.0
85.8
75.5
93.3
35.2
By instrument
U.S. government related
Sponsored credit agency securities . . . .
Mortgage pool securities
Loans from U.S. government
21.9
7.0
16.1
-1 2
36.7
23.1
13.6
47.3
24.3
23.1
43.6
24.4
19.2
45.1
30.1
15.0
60.6
13.2
47.4
47.3
27.1
20.2
39.8
21.7
18.1
42.5
26.9
15.6
47.8
33.3
14.5
59.3
21.4
37.9
61.8
5.0
56.8
35 Private financial sectors
36 Corporate bonds
37 Mortgages
38 Bank loans n.e.c
39 Open market paper
40 Loans from Federal Home Loan Banks
26.9
10.1
3.1
-.3
9.6
4.3
38.3
7.5
.9
2.8
14.6
12.5
33.4
7.8
-1.2
-.4
18.0
9.2
17.7
7.1
-.9
-.4
4.8
7.1
35.6
-.8
-2.9
2.2
20.9
16.2
3.7
2.4
1.8
1.4
-2.7
.8
10.3
9.9
-5.3
.1
-.1
5.8
25.2
4.4
3.5
-.9
9.7
8.5
43.4
-2.1
-2.3
3.7
24.8
19.3
27.8
.4
-3.5
.7
17.0
13.2
34.0
-3.4
1.9
5.9
16.0
13.8
-26.6
8.2
1.6
-3.1
-21.3
-12.1
By sector
41 Sponsored credit agencies
42 Mortgage pools
43 Private financial sectors
44 Commercial banks
45 Bank affiliates
46 Savings and loan associations
47 Finance companies
48 REITs
5.8
16.1
26.9
1.1
2.0
9.9
16.9
-2.5
23.1
13.6
38.3
1.3
7.2
14.3
18.1
-1.4
24.3
23.1
33.4
1.6
6.5
11.4
16.6
-1.3
24.4
19.2
17.7
.5
6.9
6.6
6.3
-2.2
30.1
15.0
35.6
.4
8.3
13.1
14.1
.2
13.2
47.4
3.7
1.4
.8
-3.7
5.7
.1
27.1
20.2
10.3
.8
5.8
.1
6.0
-2.0
21.7
18.1
25.2
.3
8.0
13.2
6.5
-2.5
26.9
15.6
43.4
.2
6.9
19.2
17.3
.2
33.3
14.5
27.8
.5
9.7
6.9
11.0
.2
21.4
37.9
34.0
.6
9.7
16.6
7.6
.1
5.0
56.8
-26.6
2.1
-8.0
-23.9
3.8
.1
31
32
33
34
All sectors
49 Total net borrowing
50 U.S. government securities..
51 State and local obligations...
52 Corporate and foreign bonds
379.9
79.9
21.9
36.1
477.4
90.5
28.4
31.8
489.7
84.8
29.8
34.2
443.5
122.9
35.9
41.1
499.1
132.6
32.9
28.5
488.5
222.0
60.7
31.4
411.8
110.7
30.7
49.3
475.2
135.1
41.0
33.0
522.5
124.5
35.1
26.0
475.7
140.7
30.6
30.9
475.8
158.7
53.1
12.2
501.1
285.2
68.4
50.5
53
54
55
56
57
129.9
40.2
29.5
15.0
27.4
151.0
48.8
59.0
26.4
41.5
162.4
45.4
51.0
40.3
41.8
134.0
4.9
46.5
21.6
36.6
115.2
25.3
57.0
54.0
53.7
86.8
14.4
50.1
5.5
17.7
130.4
-3.3
24.0
35.9
34.1
137.7
13.0
69.0
7.2
39.2
134.3
29.4
56.4
56.2
60.7
96.2
21.2
57.6
51.8
46.6
92.7
14.4
82.5
32.8
29.4
80.9
14.4
17.6
-21.9
6.0
-17.0
6.5
-23.5
-23.f
l.(
-.7
16.3
14.5
1.8
-.1
2.2
-.2
37.1
24.5
12.6
7.5
2.2
2.9
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
58 Total new share issues
59 Mutual funds
60 All other
61
Nonfinancial corporations
62
Financial corporations
63
Foreign
http://fraser.stlouisfed.org/ shares purchased in U.S.
Federal Reserve Bank of St. Louis
External corporate equity funds raised in U.S.
6.S
.9
5.6
2.7
2.5
.4
1.9
-.1
1.9
-.1
2.5
-.5
-3.8
.1
-3.9
-7.8
3.2
.8
22.1
5.0
17.1
12.9
2.1
2.1
-2.9
7.7
-10.6
-11.5
.9
*
26.7
19.5
7.2
3.7
2.2
1.3
16.3
5.5
10.8
6.9
1.9
1.9
27.9
4.5
23.c
18. f
2.:
2.2
11.2
8.9
2.3
.9
A
.7
Flow of Funds
1.58
A45
DIRECT A N D INDIRECT SOURCES OF F U N D S TO CREDIT MARKETS
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates
1977
1978
1980
1979
1981
1982
1981
1980
Transaction category, or sector
1982
HI
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
By public agencies and foreign
7 Total net advances
3
4 Residential mortgages
5 FHLB advances to savings and loans
6 Other loans and securities
H2
HI
H2
HI
H2
317.7
368.6
388.8
355.0
391.1
408.1
325.1
384.9
402.7
379.6
365.1
451.1
79.2
34.9
20.0
4.3
20.1
101.9
36.1
25.7
12.5
27.6
74.6
-6.3
35.8
9.2
35.9
95.8
15.7
31.7
7.1
41.3
95.9
17.2
23.4
16.2
39.1
115.7
23.9
59.9
.8
31.1
104.6
20.5
34.9
5.8
43.4
87.0
10.9
28.5
8.5
39.1
98.7
15.9
21.4
19.3
42.1
93.2
18.5
25.5
13.2
36.0
92.1
47.4
13.8
30.9
139.3
47.8
72.3
-12.1
31.3
7
8
9
10
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
10.0
22.4
7.1
39.6
17.1
39.9
7.0
38.0
19.0
52.4
7.7
-4.6
23.7
44.4
4.5
23.2
24.2
46.0
9.2
16.6
18.9
61.9
9.8
25.1
24.6
45.2
14.9
19.9
22.8
43.7
-5.9
26.5
27.1
44.3
-3.7
30.9
21.2
47.7
22.1
2.2
14.0
60.5
-6.3
24.0
23.8
63.3
25.9
26.3
11
12
Agency and foreign borrowing not in line 1
Sponsored credit agencies & mortgage pools
Foreign
21.9
13.5
36.7
33.8
47.3
20.2
43.6
27.2
45.1
27.3
60.6
16.2
47.3
29.0
39.8
25.3
42.5
34.0
47.8
20.6
59.3
17.4
61.8
14.9
Private domestic funds advanced
13 Total net advances
14 U.S. government securities
15 State and local obligations
16 Corporate and foreign bonds
17 Residential mortgages
18 Other mortgages and loans
19 LESS: Federal Home Loan Bank advances
273.9
45.1
21.9
22.2
81.4
107.6
4.3
337.1
54.3
28.4
22.4
95.5
149.1
12.5
381.8
91.1
29.8
23.7
92.0
154.3
9.2
329.9
107.2
35.9
25.8
73.7
94.4
7.1
367.6
115.4
32.9
20.6
59.7
155.3
16.2
369.1
198.0
60.7
17.0
3.6
90.6
.8
296.9
90.2
30.7
31.6
69.6
80.6
5.8
362.9
124.2
41.0
20.1
77.8
108.3
8.5
380.5
108.5
35.1
18.6
78.8
158.7
19.3
354.7
122.3
30.6
22.7
40.5
151.8
13.2
349.8
158.7
53.1
15.8
135.9
13.8
388.5
237.4
68.4
34.0
-8.6
45.3
-12.1
Private financial intermediation
20 Credit market funds advanced by private financial institutions
21 Commercial banking
22 Savings institutions
23 Insurance and pension funds
24 Other finance
261.7
87.6
81.6
69.0
23.5
302.9
128.7
73.6
75.0
25.6
292.2
121.1
55.5
66.4
49.2
257.9
99.7
54.1
74.4
29.8
301.3
103.5
24.6
75.8
97.4
254.7
98.8
24.2
87.7
44.0
245.4
64.7
34.9
84.3
61.5
270.4
134.8
73.2
64.4
-1.9
326.3
107.8
43.9
75.8
98.8
276.3
99.2
5.3
75.8
95.9
277.8
120.9
29.7
87.6
39.5
231.7
76.6
18.7
87.9
48.4
25 Sources of funds
26 Private domestic deposits and RP's
27 Credit market borrowing
261.7
138.9
26.9
302.9
141.1
38.3
292.2
142.5
33.4
257.9
167.8
17.7
301.3
211.2
35.6
254.7
161.9
3.7
245.4
162.5
10.3
270.4
173.1
25.2
326.3
212.0
43.4
276.3
210.3
27.8
277.8
158.4
34.0
231.7
165.5
-26.6
96.0
1.2
4.3
51.4
39.1
123.5
6.3
6.8
62.2
48.3
116.4
25.6
.4
49.1
41.3
72.4
-23.0
-2.6
65.4
32.6
54.6
-8.8
-1.1
70.8
-6.4
89.1
-27.9
4.5
77.9
34.6
72.7
-20.0
-6.1
70.3
28.6
72.1
-26.0
1.0
60.5
36.6
70.9
-.7
6.0
66.0
-.4
38.2
-16.8
-8.2
75.6
-12.3
85.4
-18.2
-4.9
77.7
30.7
92.9
-37.6
14.0
78.0
38.5
Private domestic nonfinancial investors
33 Direct lending in credit markets
34 U.S. government securities
35 State and local obligations
36 Corporate and foreign bonds
37 Open-market paper
38 Other
39.0
24.6
-.8
-5.1
9.6
10.7
72.5
36.3
3.6
-2.9
15.6
19.9
122.9
61.4
9.4
10.2
12.1
29.8
89.7
38.3
12.6
9.3
-3.4
32.9
101.9
50.4
20.3
-7.9
3.5
35.6
118.1
60.1
47.5
-11.7
-1.9
24.1
61.7
23.3
6.2
7.8
-8.1
32.5
117.7
53.3
18.9
10.8
1.4
33.3
97.5
43.0
22.8
-9.2
-1.4
42.3
106.2
57.7
17.8
-6.6
8.4
29.0
106.0
58.8
41.8
-26.4
7.8
24.1
130.2
61.4
53.2
3.2
-11.6
24.0
39 Deposits and currency
40 Currency
41 Checkable deposits
42 Small time and savings accounts
43 Money market fund shares
44 Large time deposits
45 Security RPs
46 Deposits in foreign countries
148.5
8.3
17.2
93.5
.2
25.8
2.2
1.3
152.3
9.3
16.3
63.7
6.9
46.6
7.5
2.0
151.9
7.9
19.2
61.0
34.4
21.2
6.6
1.5
179.2
10.3
4.2
79.5
29.2
48.3
6.5
1.1
221.0
9.5
18.3
46.6
107.5
36.3
2.5
.3
167.3
8.3
17.8
123.8
24.7
1.8
-6.1
-3.0
172.4
9.3
-2.5
73.4
61.9
24.4
5.3
.6
186.1
11.3
11.0
85.7
-3.4
72.1
7.8
1.7
218.6
5.8
26.5
26.9
104.1
46.8
7.7
.8
223.4
13.2
10.1
66.3
110.8
25.7
-2.6
-.2
158.4
2.1
8.6
79.3
39.4
30.1
1.0
-2.0
176.1
14.6
26.9
168.2
10.1
-26.5
-13.3
-3.9
47 Total of credit market instruments, deposits and
currency
28
29
30
31
32
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
*
187.5
224.9
274.8
269.0
322.8
285.4
234.1
303.8
316.1
329.6
264.4
306.3
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
23.9
95.6
40.8
25.3
89.9
44.3
18.2
76.5
21.0
25.1
78.2
.2
22.9
82.0
7.8
27.3
69.0
-2.8
29.5
82.7
*
21.2
74.5
.5
22.6
85.8
30.3
23.3
77.9
-14.6
24.1
79.4
5.8
29.9
59.6
-11.4
MEMO: Corporate equities not included above
51 Total net issues
52 Mutual fund shares
53 Other equities
6.5
.9
5.6
1.9
-.1
1.9
-3.8
.1
-3.9
22.1
5.0
17.1
-2.9
7.7
-10.6
26.7
19.5
7.2
16.3
5.5
10.8
27.9
4.5
23.4
11.2
8.9
2.3
-17.0
6.5
-23.5
16.3
14.5
1.8
37.1
24.5
12.6
54 Acquisitions by financial institutions
55 Other net purchases
7.4
-.8
4.6
-2.7
10.4
-14.2
14.6
7.5
22.9
-25.8
24.5
2.2
8.6
7.7
20.7
7.2
25.3
-14.1
20.5
-37.5
20.8
-4.4
28.2
8.9
48
49
50
NOTES BY LINE NUMBER.
1.
2.
6.
11.
Line 1 of table 1.58.
Sum of lines 3-6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. Also
sum of lines 28 and 47 less lines 40 and 46.
18. Includes farm and commercial mortgages.
26. Line 39 less lines 40 and 46.
27. Excludes equity issues and investment company shares. Includes line 19.
29. Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates.
30. Demand deposits at commercial banks.
for FRASER investment of these reserves in corporate equities.
31. Excludes net
Digitized
32. Mainly retained earnings and net miscellaneous liabilities.
33. Line 12 less line 20 plus line 27.
34-38. Lines 14-18 less amounts acquired by private finance. Line 38 includes
mortgages.
40. Mainly an offset to fine 9.
47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46.
48. Line 2/line 1.
49. Line 20/line 13.
50. Sum of lines 10 and 29.
51. 53. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding, may be obtained from Flow of Funds Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
A46
2.10
Domestic Nonfinancial Statistics • May 1983
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1982
Measure
1980
1981
Aug.
• 1 Industrial production
2
3
4
5
6
7
1
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
Industry groupings
8 Manufacturing
Capacity utilization (percent)1'2
9 Manufacturing
10 Industrial materials industries
11 Construction contracts (1977 = 100)3
1983
1982
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
147.0
151.0
138.6
138.4
137.3
135.7
134.9
135.2
137.4
138.0
139.7
142.6
146.7
145.3
145.4
145.2
151.9
147.6
150.6
149.5
147.9
151.5
154.4
151.6
141.8
141.5
142.6
139.8
143.3
133.7
142.0
141.2
144.1
137.3
144.7
132.8
140.8
140.0
143.4
135.2
143.7
132.0
139.3
138.7
142.2
134.0
141.6
130.0
139.0
138.3
141.3
134.2
141.8
128.4
139.9
139.5
142.0
136.1
141.5
127.8
140.9
140.1
143.6
135.3
143.7
132.0
140.5
139.2
143.9
132.8
145.1
134.3
141.9
140.3
144.7
134.3
147.4
136.5
144.5
142.9
147.7
136.4
150.5
139.5
146.7
150.4
137.6
138.0
137.1
135.0
134.0
134.5
136.7
138.0
139.9
142.9
79.1
80.0
78.5
79.9
69.8
68.9
69.8
68.2
69.2
67.7
68.0
66.6
67.4
65.7
67.5
65.2
68.5
67.3
68.9
68.3
69.8
69.3
71.1
70.7
107.0
111.0
111.0
112.0
117.0
105.0
122.0
131.0
127.0
119.0
131.0
n.a.
12
13
14
15
16
17
18
19
20
21
Nonagricultural employment, total 4
Goods-producing, total
Manufacturing, total
Manufacturing, production-worker . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income5
Retail sales"
137.4
110.1
104.3
99.3
152.4
342.9
317.6
264.3
332.9
303.8
138.5
109.3
103.7
98.0
154.4
383.5
349.9
288.1
370.3
330.6
136.2
102.5
96.9
89.3
154.7
407.9
365.5
285.3
396.7
326.0
135.7
101.5
96.0
88.4
154.5
411.4
367.8
286.4
400.9
340.3
135.7
101.0
95.5
87.8
154.7
412.3
367.7
284.5
402.0
343.5
135.1
99.7
94.2
86.2
154.4
414.2
368.0
281.3
403.7
347.4
134.9
99.0
93.5
85.3
154.5
417.1
368.2
280.0
406.8
353.4
134.6
98.2
93.2
85.1
154.3
418.3
370.0
279.3
407.4
353.3
135.1
99.4
93.6
85.6
154.7
419.3
373.8
283.9
409.5
352.7
134.9'
98.8
93.7
85.7
154.7'
419.7'
373.3
285.5'
409.2
348.3
135.2'
98.9'
94.(K
86.1
155,1'
422.0'
375.4'
287.5'
411.6
354.4
135.6
99.5
94.5
86.9
155,4
n.a.
n.a.
n.a.
n.a.
360.0
22
23
Prices7
Consumer
Producer finished goods
246.8
247.0
272.4
269.8
289.1
280.6
292.8
282.3
293.3
281.2
294.1
284.1
293.6
284.9
292.4
285.1
292.6
283.6
293.2
283.7
293.4'
283.4'
n.a.
n.a.
1. The industrial production and capacity utilization series have been revised
back to January 1979.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, and Department of
Commerce.
3. Index of dollar value of total construction contracts, including residential,
nonresidential and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
2.11
6. Based on Bureau of Census data published in Survey of Current Business.
7. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5, and 6,
and indexes for series mentioned in notes 3 and 7 may also be found in the Survey
of Current Business.
Figures for industrial production for the last two months are preliminary and
estimated, respectively.
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION
Seasonally adjusted
1982
1983
1982
1983
1982
1983
Series
Q2
Q3
Q4'
Q1
Output (1967 = 100)
1 Manufacturing
2 Primary processing
3 Advanced processing
4
Materials
5 Durable goods
6 Metal materials
7 Nondurable goods
8 Textile, paper, and chemical
9
Textile
10
Paper
11
Chemical
12 Energy materials
Q2
Q3
Q4
QL
Capacity (percent of 1967 output)
138.1
132.3
141.2
137.7
132.4
140.5
134.5
129.3
137.3
138.2
135.6
139.7
196.4
199.5
194.9
197.7
200.4
196.2
198.9
201.3
197.6
134.7
132.6
128.7
134.3
193.7
194.6
127.1
77.0
156.8
160.5
101.8
142.0
194.0
125.5
124.7
73.0
155.1
158.4
102.0
145.9
188.5
123.8
117.1
66.5
157.0
160.8
103.0
147.6
191.9
121.5
124.8
78.2
162.3
167.3
106.9
149.7
201.3
122.3
197.3
142.4
216.1
227.3
142.4
164.6
289.6
157.0
198.3
142.3
217.4
228.8
142.8
165.4
291.9
157.6
Q2
Q3
Q4'
QL
Utilization rate (percent)
200.1
202.3
199.0
70.3
66.3
72.5
69.7
66.1
71.6
67.6
64.2
69.5
69.1
67.0
70.2
195.5
196.6
69.6
68.1
65.8
68.3
199.2
142.4
218.9
230.5
143.1
166.3
294.3
158.2
200.2
142.6
220.2
231.9
143.6
167.0
296.7
158.8
64.4
54.1
72.6
70.6
71.5
86.3
67.0
79.9
62.9
51.3
71.3
69.2
71.5
88.2
64.6
78.5
58.8
46.7
71.8
69.8
72.0
88.7
65.2
76.8
62.3
54.8
73.7
72.2
74.5
89.6
67.8
77.0
Labor Market
2.11
A47
Continued
Previous cycle1
Latest cycle2
1982
Low
Apr.
1982
1983
Series
High
Low
High
Aug.
Sept.
Oct.
Nov.
Dec.
Jan/
Feb/
Mar/
Apr.
Capacity utilization rate (percent)
13 Manufacturing
88.0
69.0
87.2
74.9
70.8
69.8
69.2
68.0
67.4
67.5
68.5
68.9
69.8
71.7
14
15
93.8
85.5
68.2
69.4
90.1
86.2
71.0
77.2
67.2
72.6
66.1
71.7
66.4
70.7
65.0
69.6
63.9
69.2
63.7
69.5
66.0
70.0
67.4
70.0
67.8
70.6
69.5
71.9
16 Materials
17 Durable goods
Metal materials
18
92.6
91.5
98.3
69.4
63.6
68.6
88.8
88.4
96.0
73.8
68.2
59.6
70.5
65.0
56.2
68.2
63.1
51.2
67.7
61.9
51.9
66.6
59.6
48.6
65.7
58.4
45.5
65.2
58.4
46.0
67.3
60.8
52.4
68.3
62.3
54.1
69.3
63.9
57.9
70.7
65.7
59.8
19
20
94.5
67.2
91.6
77.5
74.4
71.0
72.8
72.5
71.9
71.0
72.7
73.9
74.6
75.8
21
22
23
Nondurable goods
Textile, paper, and
chemical
Textile
Paper
Chemical
95.1
92.6
99.4
95.5
65.3
57.9
72.4
64.2
92.2
90.6
97.7
91.3
75.3
80.9
89.3
70.7
72.5
73.4
87.4
69.0
68.9
72.3
88.6
63.9'
70.7
72.3
89.8
66.2
70.3
73.0
89.7
65.4
69.9
71.6
90.0
65.1
69.3
71.3
86.5
65.1
70.8
73.0
89.9
66.0
72.6
74.1
89.9
68.4
73.2
76.3
89.0
69.0
74.2
n.a.
n.a.
n.a.
24
Energy materials
94.6
84.8
88.3
82.7
80.2
79.0
76.6
77.6
76.8
76.0
77.5
76.9
76.6
77.3
Primary processing
Advanced processing . . . .
1. Monthly high 1973; monthly low 1975.
2.12
2. Preliminary; monthly highs December 1978 through January 1980; monthly
lows July 1980 through October 1980.
LABOR FORCE, EMPLOYMENT, A N D UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1982
Category
1980
1981
1983
1982
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population1
169,847
172,272
174,451
175,069
175,238
175,381
175,543
175,693
175,850
175,465
2 Labor force (including Armed Forces) 1
3 Civilian labor force
Employment
Nonagricultural industries2
4
5
Agriculture
Unemployment
Number
6
7
Rate (percent of civilian labor f o r c e ) . . .
8 Not in labor force
109,042
106,940
110,812
108,670
112,384
110,204
112,940
110,752
113,222
111,042
113,311
111,129
112,737
110,548
112,741
110,553
112,678
110,484
112,988
110,786
95,938
3,364
97,030
3,368
96,125
3,401
95,763
3,413
95,670
3,466
95,682
3,411
95,691
3,412
95,670
3,393
95,729
3,375
97
3,371
7,637
7.1
60,805
8,273
7.6
61,460
10,678
9.7
62,067
11,576
10.5
62,129
11,906
10.7
62,016
12,036
10.8
62,070
11,446
10.4
62,806
11,490
10.4
62,952
11,381
10.3
63,172
11,328
10.2
63,008
90,406
91,105
89,619
88,877
88,750
88,565
88,920
88,759
88,955
89,213
20,285
1,020
4,399
5,143
20,386
5,168
17,901
16,249
20,173
1,132
4,176
5,157
20,551
5,301
18,592
16,024
18,849
1,122
3,912
5,057
20,547
5,350
19,000
15,784
18,325
1,058
3,856
5,007
20,441
5,357
19,074
15,742
18,181
1,046
3,854
4,992
20,425
5,363
19,135
15,754
18,131
1,037
3,818
4,983
20,316
5,377
19,148
15,755
18,208
1,027
3,927
4,949
20,487
5,384
19,200
15,738
18,226
1,005
3,787
4,938
20,448
5,396
19,203
15,756
18,276
997
3,777
4,934
20,521
5,406
19,314
15,730
18,385
990
3,808
4,955
20,512
5,424
19,418
15,721
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment3
10 Manufacturing
11 Mining
12 Contract construction
13 Transportation and public utilities
14 Trade
15 Finance
16 Service
17 Government
1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1979
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A48
2.13
Domestic Nonfinancial Statistics • May 1983
INDUSTRIAL PRODUCTION
Indexes and Gross Value
Monthly data are seasonally adjusted
Grouping
1967
proportion
1982
1982
avg.
Apr.
May
June
July
Aug.
1983
Sept.
Oct.
Nov.
Dec.
Jan/
Feb.
Mar.P
Index (1967 = 100)
MAJOR MARKET
100.00
138.6
140.2
139.2
138.7
138.8
138.4
137.3
135.7
134.9
135.2
137.4
138.0
139.7
60.71
47.82
27.68
20.14
12.89
39.29
141.8
141.5
142.6
139.8
143.3
133.7
142.9
142.6
142.1
143.4
143.7
136.2
142.3
142.2
143.6
140.4
142.6
134.3
142.1
142.1
144.8
138.4
141.9
133.5
142.6
142.5
145.8
138.0
142.8
133.0
142.0
141.2
144.1
137.3
144.7
132.8
140.8
140.0
143.4
135.2
143.7
132.0
139.3
138.7
142.2
134.0
141.6
130.0
139.0
138.3
141.3
134.2
141.8
128.4
139.9
139.5
142.0
136.1
141.5
127.8
140.9
140.1
143.6
135.3
143.7
132.0
140.5
139.2
143.9
132.8
145.1
134.3
141.9
140.3
144.7
134.3
147.4
136.5
7.89
2.83
2.03
1.90
.80
5.06
1.40
1.33
1.07
2.59
129.2
129.5
99.0
86.6
206.9
129.1
102.6
104.6
149.7
135.0
130.7
129.9
100.5
87.2
204.6
131.1
102.7
103.1
151.8
138.0
132.6
138.9
111.8
96.1
207.6
129.1
100.5
101.5
145.9
137.7
134.6
143.0
117.1
101.9
208.6
129.9
106.4
108.8
149.0
134.9
137.3
149.7
127.7
114.6
205.4
130.4
102.7
106.1
151.4
136.7
132.9
135.5
107.1
93.3
207.6
131.4
104.5
108.6
152.5
137.2
131.3
135.5
105.8
94.3
210.7
128.9
99.4
104.1
153.3
134.9
126.5
123.6
89.6
79.5
210.0
128.1
106.1
110.5
151.9
130.1
124.6
120.7
86.9
77.7
206.6
126.8
104.8
108.4
151.4
128.6
125.9
128.7
99.0
87.9
204.0
124.3
94.2
98.3
150.8
129.8
131.6
136.2
107.0
97.1
210.2
129.1
109.5
112.9
149.0
131.4
134.4
144.3
120.8
107.3
204.0
128.9
105.6
108.5
155.8
130.4
135.0
142.0
116.4
99.9
207.1
131.0
104.6
108.1
161.2
132.9
19.79
4.29
15.50
8.33
7.17
2.63
1.92
2.62
1.45
148.0
146.6
147.9
148.8
149.1
148.6
148.2
148.5
147.9
148.4
148.3
147.6
148.6
159.0
149.7
169.7
219.9
127.7
150.2
170.8
158.3
148.1
170.0
218.3
128.7
151.9
174.5
159.0
149.9
169.5
216.6
126.7
153.6
173.7
159.9
150.9
170.4
219.8
126.7
152.8
171.1
159.7
149.9
171.2
222.3
128.1
151.4
167.7
159.4
149.6
170.8
222.4
129.4
149.3
169.7
158.8
148.6
170.7
221.7
128.2
150.6
169.5
159.1
150.2
169.5
220.0
125.3
151.1
169.1
158.1
149.0
168.7
218.9
125.1
150.2
171.5
158.8
149.5
169.6
220.9
128.3
148.4
169.3
158.6
150.9
167.6
222.6
127.1
142.2
164.1
158.1
150.7
166.8
221.6
127.9
140.2
162.9
159.4
169.0
224.2
127.6
143.9
12.63
6.77
1.44
3.85
1.47
157.9
134.9
214.2
107.2
129.9
164.9
145.9
242.2
114.0
134.8
159.9
138.9
224.4
109.7
131.5
156.7
134.0
209.0
107.5
129.9
154.9
131.3
200.4
106.0
129.6
153.9
128.4
190.8
104.4
130.1
150.5
123.8
182.1
101.6
124.7
147.1
118.3
169.3
98.0
121.0
146.4
117.2
165.7
97.5
121.0
148.1
117.9
171.9
97.0
119.7
146.6
118.4
173.8
97.6
118.3
142.8
114.3
152.1
98.7
118.2
144.1
113.4
144.5
100.1
117.8
5.86
3.26
1.93
.67
184.4
253.5
103.9
80.5
186.9
253.1
110.9
83.5
184.1
247.7
110.9
85.8
183.0
247.5
108.3
84.1
182.2
248.8
106.3
76.9
183.3
253.5
102.0
75.8
181.4
254.0
95.5
76.1
180.5
253.5
93.2
76.8
180.2
254.8
92.3
70.7
183.0
258.6
96.2
65.1
179.2
254.9
90.8
66.0
175.8
250.5
88.2
64.2
179.6
255.4
91.0
66.3
36 Defense and space
7.51
109.4
107.2
107.7
107.6
109.5
109.5
109.5
111.9
113.6
115.9
116.4
116.0
117.8
Intermediate products
37 Construction supplies
38 Business supplies
39 Commercial energy products
6.42
6.47
1.14
124.3
162.1
181.1
123.6
163.7
183.5
122.2
162.8
180.3
123.1
160.6
178.3
124.1
161.4
179.8
127.1
162.1
178.1
125.5
161.8
179.2
122.5
160.5
180.4
123.4
160.1
182.4
123.0
159.8
182.4
127.0
160.3
180.6
129.6
160.5
178.4
132.1
162.7
180.6
20.35
4.58
5.44
10.34
5.57
125.0
95.3
166.8
116.2
79.9
128.1
94.7
173.9
118.8
82.3
126.6
98.9
170.0
116.1
79.4
126.6
103.1
168.3
115.1
77.4
126.0
103.8
166.1
114.8
75.7
125.1
101.0
164.1
115.4
76.1
123.0
97.1
158.3
115.8
77.7
118.5
91.4
155.4
111.1
73.0
116.4
90.0
155.1
107.7
69.1
116.5
91.1
155.3
107.4
68.7
121.5
96.2
157.5
113.8
78.1
124.7
101.5
158.6
117.2
80.7
128.1
102.5
162.4
121.4
86.0
1 Total index
2 Products
3 Final products
4
Consumer goods
Equipment
5
6 Intermediate products
7 Materials
Consumer goods
8 Durable consumer goods
9 Automotive products
10
Autos and utility vehicles
11
Autos
12
Auto parts and allied goods
13 Home goods
14
Appliances, A/C, and TV
15
Appliances and TV
16
Carpeting and furniture
Miscellaneous home goods
17
18 Nondurable consumer goods
19
20 Consumer staples
71
22
23
24
25
26
Nonfood staples
Consumer chemical products . . . .
Consumer paper products
Consumer energy products
Equipment
27 Business
28 Industrial
29
Building and mining
30
Manufacturing
31
Power
32
33
34
35
Commercial transit, farm
Commercial
Transit
Farm
Materials
40 Durable goods materials
41
Durable consumer parts
42 Equipment parts
43 Durable materials n.e.c
44
Basic metal materials
45 Nondurable goods materials
46 Textile, paper, and chemical
materials
47
Textile materials
48
Paper materials
49
Chemical materials
50 Containers, nondurable
51 Nondurable materials n.e.c
10.47
157.5
160.3
156.6
153.5
152.3
154.5
158.5
158.2
157.3
155.6
159.7
162.6
164.7
7.62
1.85
1.62
4.15
1.70
1.14
161.1
102.2
145.6
193.5
161.4
127.9
164.4
104.5
143.5
199.3
159.8
134.2
160.4
101.8
141.8
193.9
157.2
130.6
156.7
99.1
140.7
188.7
158.5
124.8
155.3
99.6
142.1
185.4
158.1
123.4
157.7
103.2
146.6
186.5
162.8
120.1
162.2
103.3
148.9
193.7
167.3
121.1
161.5
104.4
148.9
192.0
164.9
125.5
161.0
102.5
149.7
191.6
160.8
127.4
160.0
102.1
144.1
192.0
155.2
127.2
163.7
104.7
150.1
195.4
162.1
129.6
168.2
106.4
150.1
203.0
159.5
129.8
170.1
109.6
148.8
205.4
163.9
129.6
52 Energy materials
53 Primary energy
54 Converted fuel materials
8.48
4.65
3.82
125.1
116.0
136.3
125.8
117.3
136.1
125.4
116.9
135.7
125.4
116.6
136.0
126.0
117.2
136.7
124.5
113.8
137.4
121.0
111.1
133.0
122.6
114.4
132.6
121.4
113.7
130.8
120.4
113.5
128.9
123.0
116.5
130.8
122.2
115.9
129.8
121.8
114.6
130.6
Supplementary groups
55 Home goods and clothing
56 Energy, total
57 Products
58 Materials
9.35
12.23
3.76
8.48
119.6
135.7
159.6
125.1
118.9
136.7
161.5
125.8
119.5
136.5
161.7
125.4
120.2
136.2
160.5
125.4
121.4
136.4
160.0
126.0
121.3
134.8
158.0
124.5
120.1
132.7
159.3
121.0
119.9
134.1
160.0
122.6
119.6
133.3
160.0
121.4
118.2
132.2
158.7
120.4
120.8
132.4
153.8
123.0
120.1
131.3
151.8
122.2
121.3
132.0
155.0
121.8
Output
2.13
A49
Continued
Grouping
SIC
code
1967
proportion
1983
1982
avg.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec
Jan/
Feb.
Mar.?
Apr
Index (1967 = 100)
MAJOR INDUSTRY
12.05
6.36
5.69
3.88
87.95
35.97
51.98
146.3
126.1
168.7
190.5
137.6
156.2
124.7
151.6
134.1
171.0
193.1
138.7
156.1
126.7
148.8
128.9
170.9
193.4
137.9
155.0
126.1
145.2
123.5
169.4
191.6
137.7
155.3
125.5
142.6
120.1
167.7
189.2
138.1
155.7
125.9
141.3
116.9
168.5
189.9
138.0
156.9
124.9
139.7
114.7
167.5
188.2
137.1
156.7
123.5
140.4
115.9
167.8
188.4
135.0
156.2
120.3
140.4
116.8
166.7
188.3
134.0
155.3
119.3
140.1
118.4
164.2
185.6
134.5
155.6
119.9
141.3
121.9
163.1
184.4
136.7
157.4
122.5
137.4
115.5
161.8
182.8
138.0
158.6
123.7
137.8
113.7
164.8
186.7
139.9
160.1
125.9
138.9
113.4
167.3
189.9
142.9
163.1
129.0
10
11.12
13
14
.51
.69
4.40
.75
82.4
142.7
131.1
112.1
108.8
146.2
137.7
119.6
90.0
149.2
132.7
114.6
71.8
144.4
129.1
106.6
58.1
140.3
127.0
103.8
53.4
135.8
123.3
105.7
55.4
127.9
121.0
106.3
63.1
143.2
119.1
108.5
70.4
134.1
120.3
111.9
74.9
129.7
122.9
111.7
81.7
144.8
124.6
112.8
74.9
136.5
117.0
115.4
79.8
127.3
115.1
116.5
127.4
113.8
1 Mining and utilities
2
Mining
Utilities
3
Electric
4
5 Manufacturing
Nondurable
6
Durable
7
8
9
10
11
Mining
Metal
Coal
Oil and gas extraction
Stone and earth minerals
12
13
14
15
16
Nondurable
manufactures
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
20
21
22
23
26
8.75
.67
2.68
3.31
3.21
151.1
118.0
124.5
149.7
116.1
126.3
150.5
118.6
123.5
151.0
123.6
123.7
151.0
121.4
124.3
150.7
120.6
125.9
149.0
113.3
126.1
151.5
110.6
125.9
152.0
113.0
123.1
152.8
109.9
122.2
154.4
104.7
125.8
153.8
108.5
130.7
132.0
150.8
149.8
146.5
146.8
147.0
152.5
154.3
155.0
154.5
151.1
158.8
155.6
155.7
157.4
17
18
19
20
21
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products
Leather and products
27
28
29
30
31
4.72
7.74
1.79
2.24
.86
144.1
196.1
121.8
254.7
60.9
144.2
198.6
120.8
255.1
60.6
143.8
193.6
122.2
257.0
61.1
142.6
193.2
124.3
258.9
62.3
143.9
194.1
124.7
256.8
62.9
145.3
195.6
121.4
261.1
60.8
144.3
196.4
122.6
262.0
60.9
142.0
194.1
123.8
256.3
59.5
141.7
192.8
120.0
250.2
57.7
142.8
195.9
118.7
249.7
56.0
141.3
197.6
113.5
256.2
59.5
144.0
200.0
111.8
262.1
61.7
145.4
201.6
116.1
269.0
62.0
147.7
22
23
24
25
Durable manufactures
Ordnance, private and government
Lumber and products
Furniture and fixtures
Clay, glass, stone products
19.91
24
25
32
3.64
1.64
1.37
2.74
86.9
112.6
151.9
128.2
85.2
106.2
151.8
127.0
86.3
110.6
151.1
125.0
86.5
112.2
152.5
126.1
87.1
116.9
154.5
126.9
86.5
120.3
156.7
128.8
86.9
119.9
155.7
130.4
89.5
117.2
154.3
128.1
91.9
119.1
152.4
127.3
92.5
121.4
153.7
125.4
93.5
130.0
150.0
128.0
93.3
130.2
151.7
131.8
93.5
132.1
155.4
132.7
26
27
28
29
30
Primary metals
Iron and steel
Fabricated metal products
Nonelectrical machinery
Electrical machinery
33
331.2
34
35
36
6.57
4.21
5.93
9.15
8.05
75.3
61.7
114.8
149.0
169.3
76.4
65.1
119.1
153.7
172.2
75.2
62.4
115.8
150.0
170.9
72.8
58.0
115.0
147.4
170.8
72.9
58.1
115.5
147.1
170.3
72.9
57.4
114.3
147.2
169.7
73.2
56.4
112.3
144.9
167.0
69.6
54.1
107.6
140.4
165.4
63.6
47.5
107.0
139.6
165.5
63.5
46.6
107.3
139.2
165.5
73.1
59.0
107.6
138.0
169.5
77.0
64.7
110.2
135.7
169.3
80.7
68.7
112.2
138.7
173.1
115.3
142.2
178.5
37
371
9.27
4.50
104.9
109.8
105.9
110.7
110.0
119.8
111.6
124.0
112.7
127.2
107.0
116.7
105.3
113.5
100.8
103.0
100.2
101.7
103.7
108.8
106.3
113.9
109.8
123.0
110.3
123.3
111.9
125.5
372-9
38
39
4.77
2.11
1.51
100.4
161.9
137.0
101.3
162.8
144.6
100.8
163.8
141.7
99.9
164.8
136.8
99.0
165.2
134.7
97.8
165.5
133.9
97.6
161.9
132.9
98.6
157.4
129.6
98.7
155.8
129.5
98.9
155.2
128.2
99.1
154.5
131.3
97.3
153.5
133.9
97.9
155.1
135.2
99.2
154.9
139.0
31 Transportation equipment
32
Motor vehicles and parts
33
Aerospace and miscellaneous
transportation equipment...
34 Instruments
35 Miscellaneous manufactures
121.6
94.7
83.9
Gross value (billions of 1972 dollars, annual rates)
MAJOR MARKET
36 Products, total.
507.4
579.6
582.1
586.1
584.1
585.8
578.5
575.3
570.0
568.4
572.9
578.1
579.0
585.8
595.8
37 Final
38 Consumer goods.
39
Equipment
40 Intermediate
390.9
277.5
113.4
451.1
308.0
143.1
128.5
453.5
306.7
146.8
128.6
458.3
312.3
146.0
127.8
456.7
313.1
143.5
127.4
457.2
314.9
142.3
128.7
449.2
309.1
140.1
129.3
446.3
309.3
137.0
129.0
442.8
306.6
136.2
127.2
441.3
305.6
135.7
127.1
445.8
306.8
138.9
127.1
448.3
310.9
137.4
129.8
448.2
313.0
135.2
130.8
452.3
314.6
137.7
133.5
460.3
320.5
139.8
135.6
116.6
1. 1972 dollar value.
NOTE. Published groupings include some series and subtotals not shown
separately. For description and historical data, see Industrial Production—1976
Revision (Board of Governors of the Federal Reserve System: Washington,
D.C.), December 1977.
A50
2.14
Domestic Nonfinancial Statistics • May 1983
HOUSING A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1982
Item
1980
1981
1983
1982'
Aug.
Sept.
Oct.
Nov.
Dec.'
Jan.'
Feb.'
Mar.
Private residential real estate activity (thousands of units)
N E W UNITS
1
2
3
Permits authorized
1-family
2-or-more-family
1,191
710
480
986
564
421
985
538
448
888
497
391
1,003
561
442
1,172
651
521
1,192
729
463
1,305
736
569
1,478
903
575
1,493
833
660
1,434
833
601
4
5
6
Started
1-family
2-or-more-family
1,292
852
440
1,084
705
379
1,062
663
400
1,046
651
395
1,134
683
451
1,142
716
426
1,361
868
493
1,280
842
438
1,694
1,126
1,775
1,087
1,611
991
568
688
620
896
515
382
682
382
720
400
320
671'
691
712
730
374'
296
685'
380'
306'
383
307
395
317
411
319
756
428
329
799
455
344
1,502
1,266
1,001'
638
363'
936'
585'
351'
679
398
1,053
679
374
1,035
647
388
1,194
818
447
1,006
631
374
1,077
957
545
779
415
1,121
707
414
13 Mobile homes shipped
222
241
239
234
222
224
251
243
284
283
Merchant builder activity in 1-family units
14 Number sold
15 Number for sale, end of period1
545
436
278
413
342
255
389
248
473
247
481
245
545
246
529
251
610
263
587
264
577
259
Price (thousands of dollars)2
Median
16 Units sold
64.7
68.8
69.3
70.1
67.7
69.7
73.5
71.7
73.9
74.2
73.5
17
76.4
83.1
83.8
86.5
79.6
79.9
87.8
86.7
87.7
88.0
8.1
2,974r
2,418'"
1,991
1,860'
1,910
1,990
2,150
2,260
2,580
2,460
2,700
62.1
72.7
66.1
78.0
67.7
80.4
68.9
82.0
67.3
80.0
66.9
79.3
67.7
80.4
67.8
80.6
68.1
80.0
68.2
80.3
69.3
81.6
7 Under construction, end of period 1
8
1-family
9
2-or-more-family
10
11
12
Completed
1-family
2-or-more-family
Units sold
301
n a.
EXISTING UNITS ( 1 - f a m i l y )
18 Number sold
2
Price of units sold (thousands of dollars)
19 Median
20 Average
Value of new construction 3 (millions of dollars)
CONSTRUCTION
21 Total put in place
230,748
238,198
229,566
228,053
228,136
230,818
239,637
239,031
255,969
249,296
245,394
22 Private
23 Residential
24 Nonresidential, total
Buildings
7.5
Industrial
Commercial
26
27
Other
28
Public utilities and other
175,701
87,261
88,440
185,221
86,566
98,655
179,418
75,003
104,415
176,644
72,139
104,505
177,002
71,451
105,551
179,792
75,687
104,105
187,517
81,744
105,773
191,441
86,950
104,491
200,071
93,406
106,665
199,099
96,313
102,786
198,596
97,807
100,789
13,839
29,940
8,654
36,007
17,031
34,243
9,543
37,838
16,670
37,125
10,421
40,199
16,691
36,091
10,499
41,224
16,587
37,129
10,506
41,329
17,072
35,677
10,778
40,578
15,838
37,769
11,100
41,066
15,257
37,516
11,476
40,242
15,518
38,773
12,234
40,140
14,431
37,330
11,871
39,154
13,332
37,261
11,491
38,705
55,047
1,880
13,808
5,089
34,270
52,977
1,966
13,304
5,225
32,482
50,148
2,192
13,180
4,983
29,793
51,409
2,481
13,327
5,036
30,565
51,134
2,674
13,464
4,719
30,277
51,026
2,324
14,314
4,541
29,847
52,120
2,527
13,906
4,718
30,969
47,590
2,320
12,417
4,601
28,252
55,898
2,671
14,757
5,214
33,256
50,197
2,709
13,245
4,889
29,354
46,798
2,721
11,525
5,063
27,489
29 Public
30 Military
31 Highway
32 Conservation and development
33 Other
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly
comparable with data in prior periods because of changes by the Bureau of the
Census in its estimating techniques. For a description of these changes see
Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
NOTE. Census Bureau estimates for all series except (a) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (b) sales and prices of
existing units, which are published by the National Association of Realtors. All
back and current figures are available from originating agency. Permit authorizations are those reported to the Census Bureau from 16,000 jurisdictions beginning
with 1978.
Prices
2.15
A51
CONSUMER A N D PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Change from 3 months earlier
(at annual rate)
Change from 1 month earlier
Index
level
Mar.
Item
1982
1982
1983
1982
1983
(1967
= 100) 1
1983
1983
Mar.
Mar.
June
Sept.
Dec.
Nov.
Mar.
Jan.
Dec.
Feb.
Mar.
CONSUMER PRICES 2
6.8
1
All items
2
3
4
5
6
Food
Energy items
All items less food and energy
Commodities
Services
3.6
9.8
4.1
.5
.4
.0
-.3
.2
-.2
.1
293.4
4.0
-.8
8.7
6.2
10.9
2.7
-1.5
4.7
6.1
3.6
6.2
7.5
9.6
9.9
11.3
.6
8.1
4.7
2.4
4.6
.8
10.2
-.3
5.4
-4.8
2.8
-25.1
4.4
5.7
3.7
.0
.8
-.1
.3
-.3
.0
.3
-.2
.3
-1.0
.1
-2.5
.5
.5
.5
.0
-3.7
-.4
.5
.3
.6
-.9
.2
.4
.1
290.5
399.9
282.6
239.1
333.1
4.2
1.8
-2.9
6.3
6.9
2.2
1.4
-4.5
3.7
3.9
4.6
10.2
-9.2
5.7
5.2
4.2
-5.2
30.9
4.2
3.5
4.6
-2.6
7.1
6.5
3.9
-4.1
4.1
-34.4
-1.0
3.0
.6
0
2.0
.6
.4
.2
.2
-.7
.3
.5
-1.0
-.2
-4.2
-1.0
-.1
.1
.6
-2.9
.7
.5
-.1
.5
-3.2
.1
.4
283.4
260.8
777.6
238.1
286.5
3.5
4.5
-.5
.8
-.5
.0
2.3
1.0
1.5
1.2
-5.1
.8
.3
.2
.0
.2
-.4
-.1
-.2
.4
-.8
-.1
314.5
292.5
-5.4
.5
-9.8
.5
2.1
-1.6
15.8
1.6
19.2
-26.4
8.7
2.9
1.3
5.8
-7.9
18.1
-7.1
-15.9
1.0
1.8
-.9
.4
-1.2
-.4
1.1
-1.2
-2.9
2.4
-.6
-2.8
.7
.1
1.5
249.1
805.2
244.6
PRODUCER PRICES
7
8
9
10
11
Finished goods
Consumer foods
Consumer energy
Other consumer goods
Capital equipment
12
13
Intermediate materials3
Excluding energy
14
15
16
Crude materials
Foods
Energy
Other
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental-equivalence measure of homeownership after 1982.
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds,
SOURCE. Bureau of Labor Statistics.
A52
2.16
Domestic Nonfinancial Statistics • May 1983
GROSS N A T I O N A L PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1982
Account
1980
1981
1983
1982
QL
Q2
Q3
Q4
Q1P
GROSS NATIONAL PRODUCT
1
Total
2,633.1
2,937.7
3,059.3
2,995.5
3,045.2
3,088.2
3,108.2
3,176.7
2
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
1,667.2
214.3
670.4
782.5
1,843.2
234.6
734.5
874.1
1,971.1
242.7
762.1
966.3
1,919.4
237.9
749.1
932.4
1,947.8
240.7
755.0
952.1
1,986.3
240.3
768.4
977.6
2,030.8
251.8
775.7
1,003.3
2,054.0
256.4
776.4
1,021.2
402.4
412.4
309.2
110.5
198.6
103.2
98.3
471.5
451.1
346.1
129.7
216.4
105.0
99.7
420.3
444.1
348.0
141.5
206.5
96.2
90.5
414.8
450.4
357.0
141.4
215.6
93.4
87.9
431.5
447.7
352.2
143.6
208.6
95.5
89.6
443.3
438.6
344.2
141.3
203.0
94.3
88.7
391.5
439.9
338.4
139.6
198.8
101.4
95.7
430.6
459.1
339.3
140.4
198.9
119.9
114.0
6
7
8
9
10
11
12
Gross private domestic investment
Fixed investment
Nonresidential
Structures
Producers' durable equipment
Residential structures
Nonfarm
13
14
Change in business inventories
Nonfarm
-10.0
-5.7
20.5
15.0
-23.8
-24.3
-35.6
-36.0
-16.2
-15.0
4.7
3.7
-48.3
-50.0
-28.5
-26.6
15
16
17
Net exports of goods and services
Exports
Imports
25.2
339.2
314.0
26.1
367.3
341.3
20.5
350.8
330.3
31.3
359.9
328.6
34.9
365.8
330.9
6.9
349.5
342.5
9.1
328.1
319.1
16.6
330.2
313.6
18
19
20
Government purchases of goods and services
Federal
State and local
538.4
197.2
341.2
596.9
229.0
368.0
647.4
257.9
389.4
630.1
249.7
380.4
630.9
244.3
386.6
651.7
259.0
392.7
676.8
278.7
398.0
675.5
271.9
403.6
21
22
23
24
25
26
By major type of product
Final sales, total
Goods
Durable
Nondurable
Services
Structures
2,643.1
1,141.9
477.3
664.6
1,225.6
265.7
2,917.3
1,289.2
528.1
761.1
1,364.3
284.2
3,083.1
1,280.4
493.3
787.1
1,494.4
284.5
3,031.1
1,269.4
482.4
787.0
1,444.4
281.7
3,061.4
1,283.1
505.9
777.2
1,476.7
285.3
3,083.5
1,295.5
516.9
778.6
1,509.5
283.2
3,156.5
1,273.6
467.9
805.7
1,547.0
287.7
3,205.2
1,302.3
486.2
816.1
1,567.3
307.1
27
28
29
Change in business inventories
Durable goods
Nondurable goods
-10.0
-5.2
-4.8
20.5
8.7
11.8
-23.8
-18.9
-5.0
-35.6
-30.9
-4.8
-16.2
-6.6
-9.6
4.7
10.1
-5.4
-48.3
-48.3
.0
-28.5
-29.1
.6
30
MEMO: Total GNP in 1972 dollars
1,474.0
1,502.6
1,476.9
1,470.7
1,478.4
1,481.1
1,477.2
1,488.5
NATIONAL INCOME
31
Total
2,117.1
2,352.5
2,436.6
2,396.9
2,425.2
2,455.6
2,468.8
n.a.
32
33
34
35
36
3/
38
Compensation of employees
Wages and salaries
Government and government enterprises
Other
Supplement to wages and salaries
Employer contributions for social insurance
Other labor income
1,598.6
1,356.1
260.2
1,095.9
242.5
115.3
127.3
1,767.6
1,494.0
283.1
1,210.9
273.6
133.2
140.4
1,856.5
1,560.6
302.3
1,258.4
295.8
142.1
153.8
1,830.8
1,541.5
296.3
1,245.2
289.3
140.2
149.1
1,850.7
1,556.6
300.0
1,256.6
294.1
141.7
152.5
1,868.3
1,570.0
303.5
1,266.4
298.3
142.8
155.5
1.876.1
1.574.5
309.2
1,265.4
301.6
143.7
157.9
1,908.5
1,597.8
313.2
1,284.6
310.7
150.1
160.6
39
40
41
Proprietors' income 1
Business and professional 1
Farm 1
116.3
96.9
19.4
124.7
100.7
24.0
120.3
101.3
19.0
116.4
98.6
17.8
117.3
99.9
17.4
118.4
101.7
16.6
128.9
104.8
24.1
128.5
110.1
18.4
42
Rental income of persons 2
43
44
45
46
Corporate profits'
Profits before tax 3
Inventory valuation adjustment
Capital consumption adjustment
47
Net interest
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
32.9
33.9
34.1
33.9
34.2
34.6
33.9
181.6
242.5
-43.0
-17.8
190.6
232.1
-24.6
-16.8
160.8
174.9
-9.2
-4.9
157.1
171.6
-4.4
-10.1
155.4
171.7
-9.4
-6.9
166.2
180.3
-10.3
-3.8
164.6
175.9
-12.6
1.3
n.a.
n.a.
187.7
235.7
264.9
258.7
267.5
268.1
265.3
266.9
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
35.3
-.7
7.1
National Income Accounts
2.17
A53
PERSONAL INCOME A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1983
1982
Account
1980
1982
1981
Ql
Q2
Q3
Q4
Ql"
PERSONAL INCOME AND SAVING
1
2 Wage and salary disbursements
Commodity-producing industries
4
Manufacturing
Distributive industries
6
Service industries
7 Government and government enterprises
8 Other labor income
9 Proprietors' income 1
Business and professional 1
Farm 1
12 Rental income of persons 2
N Dividends
14 Personal interest income
1*5 Transfer payments
16 Old-age survivors, disability, and health insurance benefits
10
11
17
2,404.1
2,569.9
2,510.5
2,552.7
2,592.5
2,624.0
2,648.3
1,356.1
468.0
354.4
330.5
297.5
260.2
1,493.9
510.8
386.4
361.4
338.6
283.1
1,560.7
509.9
382.6
376.0
372.5
302.3
1,541.6
514.3
385.1
371.4
359.5
296.5
1,556.6
513.6
385.6
375.4
367.6
300.0
1,570.0
510.2
383.8
378.4
377.8
303.5
1,574.5
501.6
375.8
378.8
385.0
309.2
1,597.8
509.8
383.1
381.7
393.0
313.2
127.3
116.3
96.9
19.4
32.9
55.9
256.3
297.2
154.2
140.4
124.7
100.7
24.0
33.9
62.5
308.5
336.3
182.0
153.8
120.3
101.3
19.0
34.1
67.0
371.2
374.7
204.5
149.1
116.4
98.6
17.8
33.9
65.8
359.7
354.6
194.7
152.5
117.3
99.9
17.4
34.2
66.1
372.0
365.2
197.5
155.5
118.4
101.7
16.6
34.6
67.2
378.2
381.0
209.2
157.9
128.9
104.8
24.1
33.9
68.8
374.6
397.8
216.6
160.6
128.5
110.1
18.4
35.3
69.8
377.6
395.3
216.8
2,160.2
Total personal income
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
88.7
104.9
111.7
110.6
111.4
112.4
112.5
116.4
2,160.2
2,404.1
2,569.9
2,510.5
2,552.7
2,592.5
2,624.0
2,648.3
336.2
386.7
397.2
393.4
401.2
394.4
399.7
401.4
20 EQUALS: Disposable personal income
1,824.1
2,029.2
2,172.7
2,117.1
2,151.5
2,198.1
2,224.3
2,247.0
21
LESS: Personal outlays
1,717.9
1,898.9
2,030.5
1,977.9
2,007.2
2,046.1
2,090.9
2,115.1
22 EQUALS: Personal saving
106.2
130.2
142.2
139.1
144.3
152.0
133.4
131.9
6,474
4,087
4,472
5.8
6,536
4,122
4,538
6.4
6,364
4,123
4,545
6.5
6,360
4,104
4,527
6.6
6,380
4,121
4,552
6.7
6,376
4,117
4,555
6.9
6,342
4,151
4,547
6.0
6,375
4,164
4,556
5.9
27 Gross saving
406.3
477.5
414.0
428.8
441.5
422.4
363.3
n.a.
78
29
30
31
438.3
106.2
38.9
-43.0
504.7
130.2
44.4
-24.6
531.4
142.2
32.8
-9.2
520.3
139.1
32.5
-4.4
529.0
144.3
30.7
-9.4
546.1
152.0
34.8
-10.3
531.!
133.4
34.2
-12.6
n.a.
131.9
n.a.
-.7
181.2
112.0
.0
206.2
123.9
.0
225.1
131.3
.0
218.9
129.8
.0
223.4
130.5
.0
227.5
131.9
.0
230.6
132.9
.0
232.7
133.6
.0
-33.2
-61.4
28.2
-28.2
-60.0
31.7
-117.4
-149.5
32.1
-90.7
-118.4
27.7
-87.5
-119.6
32.1
-123.7
-156.0
32.3
-167.7
-204.2
36.4
n.a.
-32.3
39.3
19
LESS: Personal tax and nontax payments
MEMO:
Per capita (1972 dollars)
Gross national product
24 Personal consumption expenditures
25
Disposable personal income
26 Saving rate (percent)
GROSS SAVING
Gross private saving
Personal saving
Undistributed corporate profits 1
Corporate inventory valuation adjustment
Capital consumption allowances
3? Corporate
33 Noncorporate
34 Wage accruals less disbursements
35 Government surplus, or deficit ( - ) , national income and
product accounts
36 Federal
37
State and local
1.2
1.1
.0
.0
.0
.0
.0
.0
39 Gross investment
410.1
475.6
415.7
421.3
442.3
426.0
373.1
423.1
40 Gross private domestic
41 Net foreign
402.4
7.8
471.5
4.1
420.3
-4.6
414.8
6.5
431.5
10.8
443.3
-17.3
391.5
-18.5
430.6
-7.5
3.9
-1.9
1.7
-7.5
.8
3.6
9.7
9.7
38 Capital grants received by the United States, net
42 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE. Survey of Current Business (Department of Commerce).
A54
3.10
International Statistics • May 1983
U.S. INTERNATIONAL TRANSACTIONS
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
1982
1981
Item credits or debits
1982
1981
1980
Q4
QK
Q3'
Q2'
Q4P
1,520
4,471
-8,093
-927
1,293
1,034
729
2,188
2,841
-5,214
-7,436
-6,103
-4,227
-25,338
224,237
-249,575
-2,472
29,910
6,203
-27,889
236,254
-264,143
-1,541
33,037
7,471
-36,331
211,013
-247,344
640
28,720
6,746
-9,185
57,593
-66,778
-528
8,529
2,127
-5,938
55,607
-61,545
167
6,867
1,986
-5,762
55,001
-60,763
247
7,694
1,749
-12,495
52,334
-64,829
201
7,082
1,647
-12,136
48,071
-60,207
24
7,076
1,364
-2,101
-4,681
-2,104
-4,504
-2,455
-5,413
-562
-1,308
-575
-1,473
-671
-1,069
-601
-1,048
-608
-1,823
11 Change in U.S. government assets, other than official reserve assets, net (increase, - )
-5,126
-5,137
-5,766
-987
-904
-1,547
-2,496
-818
12 Change in U.S. official reserve assets (increase, - )
13 Gold
14 Special drawing rights (SDRs)
15 Reserve position in International Monetary Fund
16 Foreign currencies
-8,155
0
-16
-1,667
-6,472
-5,175
0
-1,824
-2,491
-861
-4,965
0
-1,371
-2,552
-1,041
262
0
-134
-358
754
-1,089
0
-400
-547
-142
-1,132
0
-241
-814
-77
-794
0
-434
-459
99
-1,949
0
-297
-732
-920
17 Change in U.S. private assets abroad (increase, - ) 3
18 Bank-reported claims
19 Nonbank-reported claims
20 U.S. purchase of foreign securities, net
21 U.S. direct investments abroad, net 3
-72,746
-46,838
-3,146
-3,524
-19,238
-98,982
-84,531
-331
-5,429
-8,691
-107,535
-106,711
4,750
-7,772
2,198
-46,952
-42,645
-508
-2,843
-956
-29,264
-32,708
4,112
-531
-137
-35,166
-36,923
-304
-441
2,502
-22,307
-20,430
942
-3,266
447
-20,800
-16,650
n.a.
-3,535
-615
22 Change in foreign official assets in the United States
(increase, +)
23 U.S. Treasury securities
24 Other U.S. government obligations
25 Other U.S. government liabilities4
26 Other U.S. liabilities reported by U.S. banks
27 Other foreign official assets 5
15,442
9,708
2,187
561
-159
3,145
4,785
4,983
1,289
-69
-4,083
2,665
3,043
5,716
-670
-12
-1,713
-278
8,119
4,439
-246
275
3,436
215
-3,122
-1,344
-296
-182
-1,516
216
1,998
-2,076
258
387
3,393
36
2,494
4,825
-76
-286
-1,981
12
1,673
4,311
-556
69
-1,609
-542
28 Change in foreign private assets in the United States
(increase, +) 3
29 U.S. bank-reported liabilities
30 U.S. nonbank-reported liabilities
31 Foreign private purchases of U.S. Treasury securities, net
32 Foreign purchases of other U.S. securities, net
33 Foreign direct investments in the United States, net3
39,041
10,743
6,530
2,645
5,457
13,666
73,136
41,262
532
2,932
7,109
21,301
81,451
62,869
-3,760
6,945
5,973
9,424
30,988
20,476
-457
1,238
396
9,336
28,202
25,423
-982
1,277
1,319
1,165
27,621
22,552
-2,304
2,095
2,497
2,781
14,178
10,687
-474
1,316
220
2,429
11,451
4,207
n.a.
2,257
1,938
3,049
34 Allocation of SDRs
35 Discrepancy
1,152
28,870
1,093
25,809
0
41,864
0
9,497
2,474
0
5,142
-802
0
6,038
672
0
14,139
-1,904
0
16,546
2,035
28,870
25,809
41,864
7,023
5,944
5,366
16,043
14,511
-8,155
-5,175
-4,965
262
-1,089
-1,132
-794
-1,949
14,881
4,854
3,055
7,844
-2,940
1,611
2,780
1,604
12,769
13,314
7,176
2,230
4,988
3,079
350
-1,241
631
602
514
64
93
125
137
158
1 Balance on current account
3
4
5
6
7
8
Merchandise trade balance2
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net3
Other service transactions, net
9
10
Remittances, pensions, and other transfers
U.S. government grants (excluding military)
37
Statistical discrepancy in recorded data before seasonal
adjustment
MEMO:
Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in the United States
(increase, +)
40 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 22
above)
41 Transfers under military grant programs (excluded from
lines 4, 6, and 10 above)
38
39
1. Seasonal factors are no longer calculated for lines 12 through 41.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing; military
exports are excluded from merchandise data and are included in line 6.
3. Includes reinvested earnings of incorporated affiliates.
4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business
(U.S. Department of Commerce).
Trade and Reserve and Official Assets
3.11
A55
U.S. FOREIGN TRADE
Millions of dollars; monthly data are seasonally adjusted
1982r
Item
1980
1981
Sept.
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments
220,626
233,677
1983
1982
212,193
Oct.
Nov.
16,671
17,320
Dec.
15,852
Feb.
Jan.
16,347
Mar.
16,326
17,393
16,752
2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded
warehouses
244,871
261,305
243,952
20,581
21,006
18,892
19,154
20,021
19,015
19,525
3 Trade balance
-24,245
-27,628
-31,759
-3,261
-4,335
-3,041
-2,808
-2,628
-2,689
-2,774
not covered in Census statistics, and (2) the exclusion of military sales (which are
combined with other military transactions and reported separately in the "service
account" in table 3.10, line 6). On the import side, additions are made for gold,
ship purchases, imports of electricity from Canada and other transactions;
military payments are excluded and shown separately as indicated above.
NOTE. The data through 1981 in this table are reported by the Bureau of Census
data of a free-alongside-ship (f.a.s.) value basis—that is, value at the port of
export. Beginning in 1981, foreign trade of the U.S. Virgin Islands is included in
the Census basis trade data; this adjustment has been made for all data shown in
the table. Beginning with 1982 data, the value of imports are on a customs
valuation basis.
The Census basis data differ from merchandise trade data shown in table 3.10,
U.S. International Transactions Summary, for reasons of coverage and timing. On
the export side, the largest adjustments are: (1) the addition of exports to Canada
3.12
SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade"
(U.S. Department of Commerce, Bureau of the Census).
U.S. RESERVE ASSETS
Millions of dollars, end of period
1982
Type
1979
1980
1983
1981
Oct.
Nov.
Dec.
Jan.
Mar.
Feb.
Apr.
1 Total
18,956
26,756
30,075
31,711
34,006
33,958
33,936
34,233
34,261
34,173
2 Gold stock, including Exchange Stabilization Fund 1
11,172
11,160
11,151
11,148
11,148
11,148
11,144
11,139
11,138
11,132
2,724
2,610
4,095
4,801
4,929
5,250
5,267
5,284
5,229
5,192
1,253
2,852
5,055
6,367
7,185
7,348
8,035
8,594
9,293
9,284
3,807
10,134
9,774
9,395
10,744
10,212
9,490
9,216
8,601
8,565
3
Special drawing rights2'3
4 Reserve position in International Monetary Fund 2
5
Foreign currencies4-5
1. Gold held under earmark at Federal Reserve Banks for foreign and international accounts is not included in the gold stock of the United States; see table
3.13. Gold stock is valued at $42.22 per fine troy ounce.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through December 1980, 16 currencies were used; from January
1981,5 currencies have been used. The U.S. SDR holdings and reserve position in
the IMF also are valued on this basis beginning July 1974.
3.13
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus transactions in SDRs.
4. Valued at current market exchange rates.
5. Includes U.S. government securities held under repurchase agreement
against receipt of foreign currencies in 1979 and 1980.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1982
Assets
1979
1980
Oct.
1 Deposits
Assets held in custody
2 U.S. Treasury securities1
3 Earmarked gold
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
429
411
505
326
386
328
366
352
424
322
95,075
15,169
102,417
14,965
104,680
14,804
107,636
14,706
107,467
14,711
112,544
14,716
115,872
14,717
116,428
14,752
114,999
14,726
114,880
14,723
1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
1983
1981
NOTE. Excludes deposits and U.S. Treasury securities held for international
and regional organizations. Earmarked gold is gold held for foreign and international accounts and is not included in the gold stock of the United States.
A56
3.14
International Statistics • May 1983
FOREIGN BRANCHES OF U.S. B A N K S
Balance Sheet Data
Millions of dollars, end of period
1982
1979
1980
1983
1981
Aug.
Sept.
Oct.
Nov.
Dec/
Jan.
Feb.''
All foreign countries
1 Total, all currencies
2 Claims on United States
3 Parent bank
4 Other
5 Claims on foreigners
6 Other branches of parent bank
V Banks
8 Public borrowers
9 Nonbank foreigners
10 Other assets
11 Total payable in U.S. dollars
12 Claims on United States
13 Parent bank
14 Other
15 Claims on foreigners
16 Other branches of parent bank
Banks
18 Public borrowers
19 Nonbank foreigners
17
20 Other assets
364,409
401,135
462,790
471,710
471,085
463,601
468,376
468,740
462,278
457,642
32,302
25,929
6,373
28,460
20,202
8,258
63,743
43,267
20,476
88,936
60,315
28,621
90,267
60,872
29,395
89,036
61,283
27,753
90,844
62,476
28,368
91,752
61,629
30,123
89,184
59,247
29,937
87,449
58,419
29,030
317,330
79,662
123,420
26,097
88,151
354,960
77,019
146,448
28,033
103,460
378,899
87,821
150,708
28,197
112,173
362,437
91,593
138,517
24,521
107,806
360,462
93,283
135,454
24,333
107,392
354,373
90,030
133,365
23,850
107,128
357,104
91,894
133,269
23,340
108,601
357,596
91,067
133,300
23,968
109,261
353,584
89,470
130,874
24,464
108,776
350,928
89,715
128,980
24,585
107,648
14,777
17,715
20,148
20,337
20,356
20,192
20,428
19,392
19,510
19,265
267,713
291,798
350,678
366,148
369,746
361,804
363,483
361,169
355,008
350,108
31,171
25,632
5,539
27,191
19,896
7,295
62,142
42,721
19,421
87,328
59,634
27,694
88,613
60,207
28,406
87,316
60,538
26,778
88,971
61,662
27,309
90,032
60,973
29,059
87,490
58,479
29,011
85,823
57,716
28,107
229,120
61,525
96,261
21,629
49,705
255,391
58,541
117,342
23,491
56,017
276,882
69,398
122,055
22,877
62,552
266,420
74,252
111,712
19,043
61,413
268,253
77,470
110,591
18,984
61,208
261,896
74,032
107,448
18,659
61,757
261,701
74,759
106,636
18,187
62,119
259,127
73,463
106,001
18,303
61,360
255,697
71,174
103,447
18,717
62,359
252,665
71,885
100,610
18,891
61,279
7,422
9,216
11,654
12,400
12,880
12,592
12,811
12,010
11,821
11,620
United Kingdom
21 Total, all currencies
22 Claims on United States
23 Parent bank
24 Other
25 Claims on foreigners
26 Other branches of parent bank
27 Banks
28 Public borrowers
29 Nonbank foreigners
30 Other assets
130,873
144,717
157,229
164,523
167,189
164,582
165,687
161,067
157,464
156,577
11,117
9,338
1,779
7,509
5,275
2,234
11,823
7,885
3,938
27,031
22,730
4,301
27,534
22,970
4,564
27,829
23,717
4,112
28,677
24,278
4,399
27,354
23,017
4,337
27,175
22,539
4,636
26,423
21,962
4,461
115,123
34,291
51,343
4,919
24,570
131,142
34,760
58,741
6,688
30,953
138,888
41,367
56,315
7,490
33,716
130,814
36,937
53,582
6,286
34,009
132,746
40,385
52,203
6,086
34,072
129,913
37,013
52,568
6,157
34,175
130,666
38,319
51,414
6,170
34,763
127,734
37,000
50,767
6,240
33,727
124,354
34,959
49,497
6,421
33,477
124,214
35,437
48,580
6,592
33,605
4,633
6,066
6,518
6,678
6,909
6,840
6,344
5,979
5,935
5,940
31 Total payable in U.S. dollars
94,287
99,699
115,188
126,344
131,129
127,517
128,863
123,740
120,233
119,273
32 Claims on United States
33 Parent bank
34 Other
10,746
9,297
1,449
7,116
5,229
1,887
11,246
7,721
3,525
26,514
22,496
4,018
26,919
22,758
4,161
27,255
23,478
3,777
28,093
24,035
4,058
26,761
22,756
4,005
26,581
22,250
4,331
25,829
21,700
4,129
35 Claims on foreigners
36 Other branches of parent bank
37 Banks
38 Public borrowers
39 Nonbank foreigners
81,294
28,928
36,760
3,319
12,287
89,723
28,268
42,073
4,911
14,471
99,850
35,439
40,703
5,595
18,113
95,293
31,414
40,321
4,336
19,222
99,008
35,703
39,786
4,214
19,305
95,269
32,243
39,077
4,251
19,698
95,870
33,154
38,310
4,281
20,125
92,228
31,648
36,717
4,329
19,534
89,137
29,380
35,616
4,600
19,541
88,973
29,918
34,499
4,789
19,767
2,247
2,860
4,092
4,537
5,202
4,993
4,900
4,751
4,515
4,471
40 Other assets
Bahamas and Caymans
41 Total, all currencies
108,977
123,837
149,051
144,194
140,614
139,438
140,939
144,843
142,561
138,470
42 Claims on United States
43 Parent bank
44 Other
19,124
15,196
3,928
17,751
12,631
5,120
46,546
31,643
14,903
56,087
32,822
23,265
55,467
32,155
23,312
55,713
32,927
22,786
57,076
34,022
23,054
59,387
34,653
24,734
56,790
32,511
24,279
56,087
32,768
23,319
45 Claims on foreigners
46 Other branches of parent bank
47 Banks
48 Public borrowers
49 Nonbank foreigners
86,718
9,689
43,189
12,905
20,935
101,926
13,342
54,861
12,577
21,146
98,002
12,951
55,096
10,010
19,945
83,835
17,806
43,616
7,036
15,377
81,054
17,772
41,333
6,999
14,950
79,539
17,955
40,439
6,743
14,402
79,185
18,066
41,025
6,310
13,784
81,157
18,720
42,406
6,413
13,618
81,682
20,118
40,641
6,434
14,489
78,407
19,730
38,981
6(494
13,202
50 Other assets
51 Total payable in U.S. dollars
3,135
4,160
4,503
4,272
4,093
4,186
4,678
4,299
4,089
3,976
102,368
117,654
143,686
138,771
136,077
134,607
135,648
139,292
136,724
132,624
Overseas Branches
3.14
A57
Continued
1983
1982
Liability account
1979
1980
1981
Aug.
Sept/
Oct.
Nov.
Dec/
Jan.
Feb.P
All foreign countries
52 Total, all currencies
364,409
401,135
462,790
471,710
471,085
463,601
468,376
468,740"
462,278
457,642
169,312
64,102
32,607
72,603
171,762
66,254
31,764
73,744
178,449
75,118
33,353
69,978
178,277
79,804
32,779
65,694
175,866
77,157
32,635
66,074
274,222
91,658
98,259
19,440
64,865
276,287
91,270
98,209
21,095
65,713
270,494
90,079
96,677
19,614
64,124
265,591
89,293
92,857
20,250
63,191
263,522
90,384
90,218
19,742
63,178
53 To United States
54 Parent bank
55 Other banks in United States
56 Nonbanks
66,689
24,533
13,968
28,188
91,079
39,286
14,473
37,275
137,712
56,289
19,197
62,226
167,661
64,419
32,425
70,817
172,994
69,592
33,763
69,639
57 To foreigners
58 Other branches of parent bank
59 Banks
60 Official institutions
Nonbank foreigners
61
283,510
77,640
122,922
35,668
47,280
295,411
75,773
132,116
32,473
55,049
305,630
86,396
124,906
25,997
68,331
283,954
92,202
103,466
20,004
68,282
277,886
91,189
99,966
20,527
66,204
62 Other liabilities
63 Total payable in U.S. dollars
64 To United States
65
Parent bank
Other banks in United States
66
67 Nonbanks
68 To foreigners
69
Other branches of parent bank
70
Banks
Official institutions
71
72
Nonbank foreigners
73 Other liabilities
14,210
14,690
19,448
20,095
20,205
20,067
20,327
19,797
18,410
18,254
273,857
303,281
364,390
381,898
385,440
377,121
379,142
378,457
370,457
367,146
64,530
23,403
13,771
27,356
88,157
37,528
14,203
36,426
134,645
54,437
18,883
61,325
164,403
62,369
32,162
69,872
170,098
67,678
33,508
68,912
166,377
62,191
32,362
71,824
168,291
63,963
31,428
72,900
174,966
72,796
32,988
69,182
174,656
77,536
32,255
64,865
172.197
74,828
32,208
65,161
201,514
60,551
80,691
29,048
31,224
206,883
58,172
87,497
24,697
36,517
217,602
69,299
79,594
20,288
48,421
205,709
75,344
63,959
15,672
50,734
203,989
75,935
62,535
16,607
48,912
199,297
76,237
59,782
15,253
48,025
198,938
74,621
58,829
16,774
48,714
192,271
72,848
57,355
15,055
47,013
185,663
71,463
52,258
15,940
46,027
185,569
72,753
51,267
15,381
46,168
7,813
8,241
12,143
11,786
11,353
11,447
11,913
11,220
10,138
9,380
United Kingdom
74 Total, all currencies
75 To United States
76
Parent bank
77 Other banks in United States
78 Nonbanks
79 To foreigners
80 Other branches of parent bank
81
Banks
82 Official institutions
Nonbank foreigners
83
130,873
144,717
157,229
164,523
167,189
164,582
165,687
161,067
157,464
156,577
20,986
3,104
7,693
10,189
21,785
4,225
5,716
11,844
38,022
5.444
7,502
25,076
49,001
8,022
11,616
29,363
53,919
11,336
13,280
29,303
53,777
10,568
12,567
30,642
54,003
10,597
12,374
31,032
53,954
13.091
12,205
28,658
52,650
14,287
12,343
26,020
51,927
14,080
12,198
25,649
104,032
12,567
47,620
24,202
19,643
117,438
15,384
56,262
21,412
24,380
112,255
16,545
51,336
16,517
27,857
107,268
18,666
47,502
12,006
29,094
104,967
19,123
45,526
12,348
27,970
102,611
18,399
45,601
11,379
27,232
103,927
19,372
44,266
12,940
27,349
99,567
18,361
44,020
11,504
25,682
97,827
19,343
41,073
12,377
25,034
97,515
21,008
39.892
12,025
24,590
5,855
5,494
6,952
8,254
8,303
8,194
7,757
7,546
6,987
7,135
85 Total payable in U.S. dollars
95,449
103,440
120,277
132,536
137,268
133,591
135,188
130,261
126,286
126,007
86 To United States
Parent bank
87
88 Other banks in United States
89 Nonbanks
20,552
3,054
7,651
9,847
21,080
4,078
5,626
11,376
37,332
5,350
7,249
24,733
48,266
7,928
11,510
28,828
53,262
11,223
13,142
28,897
53,146
10,442
12,472
30,232
53,056
10,306
12,188
30,562
53,029
12,814
12,026
28,189
51,808
14,105
12,128
25,575
50,977
13,859
12,041
25,077
90 To foreigners
91
Other branches of parent bank
92 Banks
93 Official institutions
94 Nonbank foreigners
72,397
8,446
29,424
20,192
14,335
79,636
10,474
35,388
17,024
16,750
79,034
12,048
32,298
13,612
21,076
79,954
14,514
31,898
10,322
23,220
80,025
15,548
31,187
11,012
22,278
76,519
14,614
30,404
9,806
21,695'
77,982
15,310
29,092
11,198
22,382
73,477
14,300
28,810
9,668
20,699
71,000
15,081
25,177
10,657
20,085
71,994
16,709
25,563
10,121
19,601
2,500
2,724
3,911
4,316
3,981
3,926
4,150
3,755
3,478
3,036
84 Other liabilities
95 Other liabilities
Bahamas and Caymans
108,977
123,837
149,051
144,194
140,614
139,438
140,939
144,843
142,561
138,470
97 To United States
98 Parent bank
99
Other banks in United States
100 Nonbanks
37,719
15,267
5,204
17,248
59,666
28,181
7,379
24,106
85,704
39,396
10,474
35,834
99,270
42,971
17,911
38,388
99,500
44,370
17,927
37,203
96,810
40,225
17,481
39,104
98,475
41,900
16,805
39,770
104,139
46,811
18,461
38,867
104,415
50,476
17,549
36,390
102,261
47,443
17,313
37,505
101 To foreigners
102 Other branches of parent bank
103 Banks
104 Official institutions
105 Nonbank foreigners
68,598
20,875
33,631
4,866
9,226
61,218
17,040
29,895
4,361
9,922
60,012
20,641
23,202
3,498
12,671
42,039
17,348
11,599
2,288
10,804
38,401
15,126
10,910
2,091
10,274
39,793
17,421
10,297
2,137
9,938
39,603
17,566
10,413
1,846
9,778
38,249
15,796
10,166
1,967
10,320
35,900
14,688
9,279
1,849
10,084
33,858
13,809
8,451
1,720
9,878
96 Total, all currencies
106 Other liabilities
107 Total payable in U.S. dollars
2,660
2,953
3,335
2,885
2,713
2,835
2,861
2,455
2,246
2,351
103,460
119,657
145,227
140,750
137,717
136,574
137,828
141,595
139,148
135,117
A58
3.15
International Statistics • May 1983
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1982
Item
1983
1981'
1980
Sept/
1 Total1
2
3
4
5
6
7
8
9
10
11
12
Nov/
Dec/
Jan.
Feb."
Mar.''
164,578
By area
Western Europe1
Canada
Latin America and Caribbean
Asia
Africa
Other countries6
170,109
171,248
171,406
168,025
172,780
175,163
172,917
173,320
30,381
56,243
26,928
52,389
26,590
44,450
27,056
43,964
25,338
42,906
24,873
46,658
23,842
50,432
21,422
49,954
23,164
47,917
41,455
14,654
21,845
53,186
11,791
25,815
64,978
9,350
25,880
65,619
9,350
25,417
65,850
8,750
25,181
67,715
8,750
24,784
67,735
8,750
24,404
69,303
7,950
24,288
70,422
7,950
23,867
81,592
1,562
5,688
70,784
4,123
829
By type
Liabilities reported by banks in the United States2
U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
Marketable
Nonmarketable4
U.S. securities other than U.S. Treasury securities5
65,891
2,403
6,954
91,790
1,829
1,242
61,474
2,057
6,494
95,745
1,303
4,175
60,846
2,204
7,231
95,110
1,452
4,563
59,447
2,044
5,900
93,960
1,371
5,303
61,501
2,070
6,028
95,922
1,350
5,909
62,525
2,430
7,138
95,278
1,716
6,076
62,103
2,754
6,100
95,679
1,327
4,954
61,742
2,943
5,773
96,784
1,162
4,916
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable in foreign currencies through 1974) and Treasury bills issued to official
institutions of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies.
3.16
Oct/
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
NOTE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States.
LIABILITIES TO A N D CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1982
Item
1979
1980
1981r
Mar/
1 Banks' own liabilities
2 Banks' own claims
3 Deposits
4 Other claims
5 Claims of banks' domestic customers 1
1. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the accounts
of their domestic customers.
1,918
2,419
994
1,425
580
3,748
4,206
2,507
1,699
962
3,523
4,980
3,398
1,582
971
4,030
5,300
3,532
1,768
944
June'
4,513
5,895
3,565
2,329
921
Sept/
4,575
6,337
3,429
2,908
506
Dec.
4,751
7,689
4,241
3,448
676
NOTE. Data on claims exclude foreign currencies held by U.S. monetary
authorities,
Nonbank-Reported
3.17
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Data
Reported by Banks in the United States
Millions of dollars, end of period
1982
Holder and type of liability
1979
1980
1983
1981A'
Sept/
Oct/
Nov/
Dec.
Jan/
Feb.
Mar.P
1 All foreigners
187,521
205,297
244,043
300,348
300,811
302,776
305,320
304,779
302,828
315,715
2 Banks' own liabilities
3 Demand deposits
4 Time deposits'
5 Other 2
6 Own foreign offices3
117,196
23,303
13,623
16,453
63,817
124,791
23,462
15,076
17,583
68,670
163,738
19,628
28,992
17,617
97,500
222,260
15,413
62,862
23,189
120,796
221,055
17,059
62,172
22,930
118,894
226,068
17,148
62,718
24,414
121,788
225,379
16,017
67,072
23,791
118,499
219,361
16,089
64,347
22,918
116,006
217,841
17,423
65,273
20,295
114,851
233,925
16,318
68,372
24,284
124,950
70,325
48,573
80,506
57,595
80,305
55,316
78,089
51,572
79,756
53,374
76,708
52,138
79,941
55,614
85,419
62,137
84,987
61,904
81,790
58,767
19,396
2,356
20,079
2,832
19,019
5,970
22,437
4,080
22,668
3,715
20,965
3,605
20,625
3,702
19,352
3,930
19,205
3,877
18,831
4,193
2,356
2,344
2,721
5,050
6,036
6,465
4,597
6,611
5,969
3,949
714
260
151
303
444
146
85
212
638
262
58
318
2,752
194
734
1,825
2,337
261
431
1,645
3,387
257
969
2,161
1,584
106
1,339
139
1,787
284
1,333
170
1,695
195
1,367
134
1,304
221
917
166
1,643
102
1,900
254
2,083
541
2,298
676
3,699
2,160
3,078
1,774
3,013
1,621
4,824
3,603
4,275
3,153
2,645
1,501
1,538
2
1,646
0
1,542
0
1,621
0
1,539
0
1,304
0
1,392
0
1,221
0
1,122
0
1,144
0
7 Banks' custody liabilities4
8 U.S. Treasury bills and certificates 5
9 Other negotiable and readily transferable
instruments 6
10 Other
11 Nonmonetary international and regional
organizations7
12
13
14
15
Banks' own liabilities
Demand deposits
Time deposits'
Other 2
16 Banks' custody liabilities4
17 U.S. Treasury bills and certificates
18 Other negotiable and readily transferable
instruments 6
19 Other
20 Official institutions
8
78,206
86,624
79,318
71,041
71,021
68,244
71,531
74,274
71,377
71,081
21 Banks' own liabilities
22 Demand deposits
23 Time deposits'
24 Other 2
18,292
4,671
3,050
10,571
17,826
3,771
3,612
10,443
17,094
2,564
4,230
10,300
16,796
2,521
5,518
8,758
16,989
2,138
6,132
8,720
16,638
2,074
5,539
9,025
16,526
1,981
5,489
9,057
16,411
2,168
4,907
9,336
14,620
2,063
5,481
7,076
16,632
2,264
5,608
8,759
25 Banks' custody liabilities4
26 U.S. Treasury bills and certificates 5
27 Other negotiable and readily transferable
instruments 6
28 Other
59,914
47,666
68,798
56,243
62,224
52,389
54,245
44,450
54,031
43,964
51,607
42,906
55,006
46,658
57,864
50,432
56,756
49,954
54,449
47,917
12,196
52
12,501
54
9,787
47
9,755
39
10,033
34
8,672
28
8,319
28
7,396
35
6,769
33
6,507
25
29 Banks9
88,316
96,415
136,030
183,101
182,766
185,679
185,097
178,460
179,066
192,516
30 Banks' own liabilities
31 Unaffiliated foreign banks
32
Demand deposits
33
Time deposits'
34
Other 2
35 Own foreign offices3
83,299
19,482
13,285
1,667
4,530
63,817
90,456
21,786
14,188
1,703
5,895
68,670
124,312
26,812
11,614
8,735
6,462
97,500
167,276
46,480
8,138
26,767
11,575
120,796
166,268
47,374
9,882
26,026
11,466
118,894
169,412
47,624
9,724
26,035
11,865
121,788
168,679
50,179
8,733
28,267
13,179
118,499
161,637
45,631
8,186
25,556
11,889
116,006
161,053
46,202
9,627
25,297
11,278
114,851
174,138
49,188
8,245
27,509
13,433
124,950
5,017
422
5,959
623
11,718
1,687
15,825
4,897
16,498
5,634
16,267
5,792
16,419
5,809
16,822
6,292
18,012
6,791
18,377
7,122
2,415
2,179
2,748
2,588
4,421
5,611
7,916
3,012
8,061
2,803
7,782
2,693
7,844
2,766
7,698
2,833
8,345
2,876
8,266
2,990
40 Other foreigners
18,642
19,914
25,974
41,156
40,989
42,388
44,095
45,434
46,416
48,169
41 Banks' own liabilities
42 Demand deposits
43 Time deposits
44 Other 2
14,891
5,087
8,755
1,048
16,065
5,356
9,676
1,033
21,694
5,189
15,969
537
35,435
4,560
29,843
1,031
35,461
4,778
29,583
1,100
36,631
5,093
30,175
1,363
38,591
5,197
31,977
1,416
39,526
5,452
32,551
1,524
40,473
5,539
33,128
1,807
41,850
5,587
34,338
1,925
3,751
382
3,849
474
4,279
699
5,721
1,548
5,528
1,615
5,756
1,666
5,504
1,525
5,908
1,810
5,943
2,006
6,319
2,227
3,247
123
3,185
190
3,268
312
3,146
1,028
3,035
878
3,207
884
3,070
908
3,037
1,062
2,970
968
2,914
1,178
10,984
10,745
10,747
13,533
15,029
14,408
14,296
13,367
11,611
11,383
36 Banks' custody liabilities4
37 U.S. Treasury bills and certificates
38 Other negotiable6 and readily transferable
instruments
39 Other
45 Banks' custody liabilities4
46 U.S. Treasury bills and certificates
47 Other negotiable and readily transferable
instruments 6
48 Other
49 MEMO: Negotiable time certificates of
deposit in custody for foreigners
1. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due to head office or parent foreign bank, and
foreign branches, agencies or wholly owned subsidiaries of head office or parent
foreign bank.
4. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
5. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments, and the Bank for
International Settlements.
9. Excludes central banks, which are included in "Official institutions."
A Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
A59
A60
3.17
International Statistics • M a y 1983
Continued
1982
Area and country
1979
1980
1983
1981A'
Sept/
Oct/
Nov/
Dec.
Jan/
Feb.
Mar.P
1
187,521
205,297
244,043
300,348
300,811
302,776
305,320
304,779
302,828
315,715
2 Foreign countries
185,164
202,953
241,321
295,299
294,776
296,311
300,723
298,168
296,858
311,766
90,952
413
2,375
1,092
398
10,433
12,935
635
7,782
2,337
1,267
557
1,259
2,005
17,954
120
24,700
266
4,070
52
302
90,897
523
4,019
497
455
12,125
9,973
670
7,572
2,441
1,344
374
1,500
1,737
16,689
242
22,680
681
6,939
68
370
91,309
596
4,117
333
296
8,486
7,665
463
7,290
2,823
1,457
354
916
1,545
18,720
518
28,287
375
6,526
49
493
114,289
537
3,259
149
328
7,720
5,331
471
6,714
2,899
1,773
386
1,106
1,324
26,491
301
48,492
307
6,334
47
322
116,015
508
2,782
166
478
7,358
5,360
516
5,541
3,102
2,026
356
1,315
1,997
27,619
317
49,009
390
6,524
111
541
117,242
441
2,499
221
572
7,065
6,093
496
4,779
3,100
2,197
453
1,301
1,615
27,994
255
50,274
470
6,889
45
486
117,695
512
2,517
509
748
8,169
5,375
537
5,674
3,362
1,567
388
1,405
1,380
28,999
296
48,169
499
6,965
50
573
118,764
467
2,270
996
473
8,462
5,807
589
4,938
3,770
1,476
398
1,316
1,315
28,996
190
50,339
470
6,033
47
412
116,019
513
2,295
1,197
369
7,723
6,227
595
4,514
3,196
1,407
370
1,524
1,645
30,288
251
47,202
452
5,873
41
335
116,810
605
2,725
765
408
6,758
6,457
597
4,310
3,703
1,061
363
1,630
1,386
30,652
256
47,656
491
6,106
42
840
3 Europe
4
Austria
5 Belgium-Luxembourg
6
Denmark
7
Finland
8
France
9 Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21
Other Western Europe 1
22
U.S.S.R
23
Other Eastern Europe 2
24 Canada
7,379
10,031
10,250
11,623
12,163
11,719
12,217
10,990
13,618
15,156
25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32 Colombia
33
Cuba
34
Ecuador
35 Guatemala
36 Jamaica
37
Mexico
38 Netherlands Antilles
39 Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other Latin America and Caribbean
49,686
1,582
15,255
430
1,005
11,138
468
2,617
13
425
414
76
4,185
499
4,483
383
202
4,192
2,318
53,170
2,132
16,381
670
1,216
12,766
460
3,077
6
371
367
97
4,547
413
4,718
403
254
3,170
2,123
85,159
2,445
34,856
765
1,568
17,794
664
2,993
9
434
479
87
7,170
3,182
4,857
694
367
4,245
2,548
110,907
3,467
43,815
1,519
1,752
23,339
1,293
2,516
7
524
639
121
8,477
3,713
6,184
974
721
8,625
3,219
108,687
3,482
43,123
1,507
2,020
23,068
1,447
2,407
7
556
636
118
8,031
3,677
4,770
1,031
844
8,796
3,166
110,140
3,432
44,125
1,596
1,986
24,276
1,444
2,426
8
519
639
108
8,047
3,518
4,798
959
651
8,315
3,293
112,916
3,577
44,026
1,572
2,010
26,372
1,626
2,593
9
453
670
126
7,967
3,597
4,738
1,147
759
8,382
3,291
110,576
4,833
42,911
1,989
1,916
24,630
1,341
2,384
10
472
682
115
7,930
3,762
4,923
1,052
726
7,649
3,251
109,313
4,891
43,237
1,903
2,010
23,963
1,280
2,336
10
499
669
103
7,380
3,474
4,983
903
817
7,671
3,185
119,427
4,646
48,833
2,123
1,917
27,469
1,068
1,873
9
548
653
133
8,108
3,407
5,594
911
808
8,000
3,327
44
33,005
42,420
50,005
51,123
49,803
48,565
48,679
48,193
49,581
52,276
49
1,393
1,672
527
504
707
8,907
993
795
277
15,300
1,879
49
1,662
2,548
416
730
883
16,281
1,528
919
464
14,453
2,487
158
2,082
3,950
385
640
592
20,750
2,013
874
534
13,174
4,854
254
2,494
4,945
407
436
583
18,895
1,905
712
310
14,030
6,152
216
2,568
4,957
439
757
612
16,830
1,927
736
365
14,053
6,344
214
2,769
4,847
507
534
705
15,680
1,776
768
349
14,396
6,020
203
2,716
4,465
433
849
606
16,098
1,692
770
629
13,433
6,784
220
3,139
4,542
514
1,156
608
15,836
1,473
680
482
12,332
7,210
196
3,515
4,988
962
614
515
16,613
1,458
787
529
11,672
7,731
208
3,530
5,697
525
851
983
16,855
1,418
718
488
13,057
7,945
3,239
475
33
184
110
1,635
804
5,187
485
33
288
57
3,540
783
3,180
360
32
420
26
1,395
946
2,785
385
63
344
20
1,074
899
3,369
242
54
279
23
1,669
1,103
3,192
373
66
564
22
1,250
918
3,070
398
75
277
23
1,280
1,016
3,331
500
51
276
25
1,603
877
3,087
416
51
317
31
1,333
939
2,873
4%
57
281
33
975
1,031
904
684
220
1,247
950
297
1,419
1,223
1%
4,572
4,355
216
4,738
4,530
207
5,452
5,224
228
6,146
5,904
243
6,314
6,080
235
5,241
5,052
190
5,224
4,933
291
2,356
1,238
806
313
2,344
1,157
890
2%
2,721
1,661
710
350
5,050
3,934
719
397
6,036
5,141
573
322
6,465
5,522
533
410
4,597
3,705
517
375
6,611
5,769
527
316
5,969
5,186
487
2%
3,949
3,182
478
289
45
46
47
48
49
50
51
52
53
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle-East oil-exporting countries 3
Other Asia
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries 4
63
Other Africa
64 Other countries
65
Australia
66
All other
67 Nonmonetary international and regional
organizations
International
Latin American regional
Other regional 5
68
69
/0
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not fisted in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, ana Romania.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."
A Liabilities and claims of banks in the United States were increased, beginning
in December 1981, by the shift from foreign branches to international banking
facilities in the United States of liabilities to, and claims on, foreign residents.
Nonbank-Reported
3.18
Data
A61
B A N K S ' O W N CLAIMS O N FOREIGNERS Reported by Banks in the United States
Payable in U . S . Dollars
Millions of dollars, end of period
1983
1982
Area and country
1979
1981A'
1980
Sept/
Nov/
Oct/
Dec.
Jan/
Mar.P
Feb.
1 Total
133,943
172,592
251,082
340,301
334,783
336,551
353,733
357,333
358,429
369,180
2 Foreign countries
133,906
172,514
251,026
340,257
334,728
336,494
353,665
357,260
358,352
369,111
28,388
284
1,339
147
202
3,322
1,179
154
1,631
514
276
330
1,051
542
1,165
149
13,795
611
175
268
1,254
32,108
236
1,621
127
460
2,958
948
256
3,364
575
227
331
993
783
1,446
145
14,917
853
179
281
1,410
49,067
121
2,851
187
546
4,124
938
333
5,240
682
384
529
2,100
1,205
2,213
424
23,654
1,224
209
377
1,725
76,527
146
4,811
358
806
5,816
1,609
283
6,733
1,099
575
998
3,469
2,404
1,847
605
41,413
1,1%
325
246
1,787
78,358
173
4,965
3%
813
6,219
1,522
335
7,346
1,285
544
1,018
3,558
2,799
1,636
603
41,661
1,248
266
242
1,728
79,190
197
5,395
406
904
6,627
1,756
373
7,708
1,122
650
924
3,643
2,804
1,516
598
40,868
1,261
380
227
1,832
84,005
216
5,115
554
990
6,863
1,860
452
7,498
1,428
572
943
3,730
3,030
1,639
560
44,754
1,418
378
263
1,741
83,503
232
4,730
609
984
7,204
1,407
576
7,544
1,470
625
843
3,699
3,113
1,568
527
44,703
1,382
310
233
1,745
84,131
226
5,363
648
957
7,369
1,740
632
7,005
1,356
587
834
3,223
2,693
1,496
567
45,757
1,399
319
250
1,709
87,352
255
5,542
1,134
923
7,176
1,336
603
7,169
1,629
536
817
3,120
2,309
1,665
595
48,387
1,386
317
308
2,144
3 Europe
Austria
4
5 Belgium-Luxembourg
Denmark
6
Finland
7
France
8
9
Germany
10 Greece
11 Italy
17 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
Yugoslavia
20
Other Western Europe 1
71
?.?. U.S.S.R
Other Eastern Europe 2
23
4,143
4,810
9,164
11,870
12,982
12,500
14,216
14,865
15,569
14,791
25 Latin America and Caribbean
26 Argentina
Bahamas
77
Bermuda
28
29
Brazil
30 British West Indies
31 Chile
32 Colombia
33 Cuba
Ecuador
34
35 Guatemala 3
36 Jamaica 3
Mexico
37
38 Netherlands Antilles
39 Panama
40
Peru
Uruguay
41
Venezuela
42
Other Latin America and Caribbean
43
67,993
4,389
18,918
496
7,713
9,818
1,441
1,614
4
1,025
134
47
9,099
248
6,041
652
105
4,657
1,593
92,992
5,689
29,419
218
10,496
15,663
1,951
1,752
3
1,190
137
36
12,595
821
4,974
890
137
5,438
1,583
138,138
7,522
43,446
346
16,914
21,930
3,690
2,018
3
1,531
124
62
22,409
1,076
6,779
1,218
157
7,069
1,844
187,120
10,964
55,999
429
23,104
30,032
5,394
2,826
3
2,127
119
387
29,630
825
10,583
2,252
550
9,867
2,032
180,564
11,019
51,848
602
22,999
28,270
5,276
2,838
3
2,057
111
151
29,422
685
10,286
2,244
572
9,925
2,257
180,902
10,816
52,207
957
22,978
27,370
5,091
2,895
3
2,101
140
218
29,558
731
10,516
2,252
609
10,250
2,211
187,379
10,960
56,300
603
23,204
29,162
5,560
3,185
3
2,053
124
181
29,449
814
10,133
2,332
681
10,682
1,953
192,024
11,231
58,003
582
23,036
32,790
5,229
3,221
11
2,038
129
206
29,422
815
10,040
2,299
687
10,225
2,057
191,944
11,431
56,630
536
23,377
33,342
5,302
3,159
2
2,054
119
197
30,234
906
9,2%
2,273
684
10,283
2,117
197,584
11,258
59,527
506
23,409
34,948
5,1%
3,184
2
2,046
83
216
30,896
955
9,471
2,297
706
10,569
2,315
44
30,730
39,078
49,780
57,440
55,723
56,671
60,629
59,032
58,929
61,400
35
1,821
1,804
92
131
990
16,911
3,793
737
933
1,548
1,934
195
2,469
2,247
142
245
1,172
21,361
5,697
989
876
1,432
2,252
107
2,461
4,126
123
351
1,562
26,762
7,324
1,817
564
1,575
3,009
126
1,949
6,723
275
297
1,623
28,584
7,365
2,508
409
2,591
4,991
139
2,020
5,976
254
315
1,748
26,722
7,790
2,560
442
2,848
4,910
194
2,255
6,201
258
314
1,895
25,952
8,536
2,467
501
3,176
4,923
210
2,285
7,705
222
342
2,043
27,199
9,389
2,555
643
3,087
4,948
198
2,223
7,081
230
370
1,835
26,741
9,052
2,444
649
3,428
4,781
195
1,975
7,126
200
429
1,732
26,845
9,183
2,599
651
3,383
4,612
195
1,855
7,501
160
505
1,743
28,689
9,166
2,628
621
3,795
4,541
1,797
114
103
445
144
391
600
2,377
151
223
370
94
805
734
3,503
238
284
1,011
112
657
1,201
5,176
386
376
1,775
59
842
1,738
5,017
365
367
1,744
61
764
1,717
5,274
349
384
1,832
58
903
1,747
5,350
322
347
2,013
57
803
1,807
5,608
310
342
2,061
57
914
1,924
5,504
277
359
2,193
54
841
1,781
5,483
309
375
2,185
52
844
1,717
855
673
182
1,150
859
290
1,376
1,203
172
2,125
1,792
332
2,083
1,713
370
1,957
1,528
429
2,086
1,713
373
2,228
1,714
514
2,274
1,696
578
2,501
1,947
554
36
78
56
44
56
57
68
73
77
69
24 Canada
45
46
47
48
49
50
51
52
53
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East oil-exporting countries 4
Other Asia
57 Africa
58 Egypt
59 Morocco
South Africa
60
Zaire
61
62 Oil-exporting countries 5
63 Other
64 Other countries
Australia
65
All other
66
67 Nonmonetary international and regional
organizations 6
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
3. Included in "Other Latin America and Caribbean" through March 1978.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."
NOTE. Data for period prior to April 1978 include claims of banks' domestic
customers on foreigners.
• Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
A62
3.19
International Statistics • May 1983
BANKS' OWN A N D DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period
1982
Type of claim
1979
1980
1983
1981A R
Sept/
Oct/
Nov/
334,783
42,429
117,329
114,464
42,165
72,299
60,561
336,551
42,296
118,060
115,123
41,227
73,896
61,073
Dec.
1 Total
154,030
198,698
287,051
377,854
2
3
4
5
6
7
8
133,943
15,937
47,428
40,927
6,274
34,654
29,650
172,592
20,882
65,084
50,168
8,254
41,914
36,459
251,082
31,302
96,647
74,134
23,012
51,123
48,999
340,301
42,670
126,367
111,693
40,932
70,761
59,570
20,088
955
26,106
885
35,968
1,378
37,553
1,329
15,574
26,352
29,107
9,648
8,238
7,117
22,714
29,517
35,273
24,468
39,862
43,649
358,429
45,411
134,272
117,660
44,100
73,560
61,086
369,180
46,697
142,088
119,982
48,201
71,782
60,412
38,263
38,608
38,391
22,333
357,333
44,360
133,589
116,434
42,160
74,274
62,950
7,056
18,021
Mar."
30,627
6,032
Feb.
39,909
2,226
13,100
Jan/
Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices1
Unaffiliated foreign banks
Deposits
Other
All other foreigners
9 Claims of banks' domestic customers 2
393,642
353,733
44,601
127,275
119,327
43,012
76,315
62,530
11 Negotiable and readily transferable
12 Outstanding collections and other
13 MEMO: Customer liability on
Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 4 . . .
1. U.S. banks: includes amounts due from own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due from head office or parent foreign bank,
and foreign branches, agencies, or wholly owned subsidiaries of head office or
parent foreign bank.
2. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the account
of their domestic customers.
3. Principally negotiable time certificates of deposit and bankers acceptances.
3.20
45,717
46,884
40,967
n.a.
4. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see July 1979 BULLETIN, p.
550.
A Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
NOTE. Beginning April 1978, data for banks' own claims are given on a monthly
basis, but the data for claims of banks' own domestic customers are available on a
quarterly basis only.
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1981
Maturity; by borrower and area
1979
Dec. A'
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
8
9
10
11
17
13
Mar/
June'
Sept/
Dec.
86,181
1
2
3
4
5
6
7
1982
1980
By area
Maturity of 1 year or less1
Europe
Canada
Latin America and Caribbean
Africa
All other 2
Maturity of over 1 year1
14 Europe
15 Canada
16 Latin America and Caribbean
17
18 Africa
19 All other 2
1. Remaining time to maturity.
2. Includes nonmonetary international and regional organizations.
106,748
153,879
174,639
200,596
213,223
225,853
65,152
7,233
57,919
21,030
8,371
12,659
82,555
9,974
72,581
24,193
10,152
14,041
115,849
15,099
100,750
38,030
15,650
22,380
133,247
16,651
116,596
41,392
16,809
24,582
151,698
19,367
132,331
48,898
20,057
28,841
161,686
20,057
141,629
51,537
21,925
29,612
171,852
20,999
150,852
54,001
22,883
31,118
15,235
1,777
24,928
21,641
1,077
493
18,715
2,723
32,034
26,686
1,757
640
27,914
4,634
48,489
31,413
2,457
943
34,383
5,816
58,352
30,558
2,890
1,249
39,064
6,594
68,046
33,518
3,259
1,217
44,880
7,039
71,686
33,297
3,621
1,163
49,232
7,554
72,922
37,226
3,692
1,225
4,160
1,317
12,814
1,911
655
173
5,118
1,448
15,075
1,865
507
179
8,094
1,774
25,089
1,907
899
267
8,256
1,858
27,660
2,250
1,056
312
9,244
2,340
32,919
2,479
1,295
622
10,510
1,955
34,020
3,088
1,328
635
11,559
1,923
35,121
3,168
1,491
740
A Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
Nonbank-Reported
Data
A63
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks 1
3.21
Billions of dollars, end of period
1982
1981
Area or country
19782
1979
1980
Mar.
June
Sept.
Dec.
Mar.
June
Sept.
Dec.''
266.2
303.9
352.0
372.1
382.9
399.8
414.4
417.6
432.0
433.6
435.1
124.7
9.0
12.2
11.3
6.7
4.4
2.1
5.3
47.3
6.0
20.6
138.4
11.1
11.7
12.2
6.4
4.8
2.4
4.7
56.4
6.3
22.4
162.1
13.0
14.1
12.1
8.2
4.4
2.9
5.0
67.4
8.4
26.5
168.5
13.6
14.5
13.3
7.7
4.6
3.2
5.1
68.5
8.9
29.1
168.3
13.8
14.7
12.1
8.4
4.2
3.1
5.2
67.0
10.8
28.9
172.2
14.1
16.0
12.7
8.6
3.7
3.4
5.1
68.8
11.8
28.0
175.2
13.3
15.3
12.9
9.6
4.0
3.7
5.5
69.9
10.9
30.1
173.7
13.2
15.9
12.5
9.0
4.0
4.0
5.3
69.7
11.6
28.4
175.0
14.1
16.4
12.7
9.0
4.1
4.0
5.1
68.5
11.3
29.9
173.4
13.5
15.7
12.2
9.7
3.8
4.7
5.0
69.0
10.8
28.9
177.2
13.0
16.6
12.6
10.3
3.6
5.0
5.0
70.9
10.9
29.0
13 Other developed countries
14 Austria
15 Denmark
16 Finland
17 Greece
18 Norway
19 Portugal
20 Spain
21 Turkey
22 Other Western Europe
7.3 South Africa
24 Australia
19.4
1.7
2.0
1.2
2.3
2.1
.6
3.5
1.5
1.3
2.0
1.4
19.9
2.0
2.2
1.2
2.4
2.3
.7
3.5
1.4
1.4
1.3
1.3
21.6
1.9
2.3
1.4
2.8
2.6
.6
4.4
1.5
1.7
1.1
1.3
23.5
1.8
2.4
1.4
2.7
2.8
.6
5.5
1.5
1.8
1.5
1.5
24.8
2.1
2.3
1.3
3.0
2.8
.8
5.7
1.4
1.8
1.9
1.7
26.4
2.2
2.5
1.4
2.9
3.0
1.0
5.8
1.5
1.9
2.5
1.9
28.4
1.9
2.3
1.7
2.8
3.1
1.1
6.7
1.4
2.1
2.8
2.5
30.6
2.1
2.5
1.6
2.8
3.2
1.2
7.2
1.6
2.2
3.3
3.0
32.1
2.1
2.6
1.6
2.6
3.2
1.5
7.3
1.5
2.2
3.5
4.0
32.6
2.0
2.5
1.8
2.5
3.4
1.6
7.7
1.5
2.1
3.6
4.0
33.6
1.9
2.4
2.3
2.9
3.3
1.5
7.5
1.4
2.3
3.7
4.3
75 OPEC countries3
26 Ecuador
27 Venezuela
28 Indonesia
29 Middle East countries
30 African countries
22.7
1.6
7.2
2.0
9.5
2.5
22.9
1.7
8.7
1.9
8.0
2.6
22.7
2.1
9.1
1.8
6.9
2.8
21.7
2.0
8.3
2.1
6.7
2.6
22.2
2.0
8.8
2.1
6.8
2.6
23.5
2.1
9.2
2.5
7.1
2.6
24.5
2.2
9.7
2.5
7.5
2.5
25.1
2.3
9.7
2.7
8.2
2.2
26.1
2.4
9.8
2.7
8.7
2.5
27.0
2.3
10.1
2.9
9.0
2.7
27.2
2.2
10.6
3.2
8.5
2.7
31 Non-OPEC developing countries
52.6
63.0
77.4
82.2
84.8
90.2
96.2
97.5
103.6
103.8
106.9
3.0
14.9
1.6
1.4
10.8
1.7
3.6
5.0
15.2
2.5
2.2
12.0
1.5
3.7
7.9
16.2
3.7
2.6
15.9
1.8
3.9
9.5
17.0
4.0
2.4
17.0
1.8
4.7
8.5
17.5
4.8
2.5
18.2
1.7
3.8
9.3
17.7
5.5
2.5
20.0
1.8
4.2
9.4
19.1
5.8
2.6
21.6
2.0
4.1
9.9
19.7
6.0
2.3
22.9
1.9
4.1
9.7
21.3
6.4
2.6
25.1
2.4
4.0
9.2
22.4
6.2
2.8
24.8
2.6
4.3
8.9
22.8
6.3
3.0
24.4
2.6
4.2
39
40
41
47.
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.0
2.9
.2
1.0
3.9
.6
2.8
1.2
.2
.1
3.4
.2
1.3
5.4
1.0
4.2
1.5
.5
.2
4.2
.3
1.5
7.1
1.1
5.1
1.6
.6
.2
4.4
.3
1.3
7.7
1.2
4.8
1.6
.5
.2
4.6
.3
1.8
8.8
1.4
5.1
1.5
.7
.2
5.1
.3
1.5
8.6
1.4
5.6
1.4
.8
.2
5.1
.3
2.1
9.4
1.7
6.0
1.5
1.0
.2
5.1
.5
1.7
8.6
1.7
5.9
1.4
1.2
.3
5.0
.5
2.2
8.9
1.9
6.3
1.3
1.1
.2
4.9
.5
1.9
9.3
1.8
6.0
1.3
1.3
.3
5.2
.6
2.3
10.8
2.1
6.2
1.6
1.1
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 4
.4
.6
.2
1.4
.6
.6
.2
1.7
.8
.7
.2
2.1
.8
.6
.2
2.2
.7
.5
.2
2.1
1.0
.7
.2
2.2
1.1
.7
.2
2.3
1.3
.7
.2
2.3
1.3
.7
.2
2.3
1.3
.8
.1
2.2
1.2
.7
.1
2.5
52 Eastern Europe
53 U.S.S.R
54 Yugoslavia
55 Other
6.9
1.3
1.5
4.1
7.3
.7
1.8
4.8
7.4
.4
2.3
4.6
7.7
.4
2.4
4.8
7.7
.5
2.5
4.8
7.7
.4
2.5
4.7
7.8
.6
2.5
4.7
7.2
.4
2.5
4.3
6.7
.4
2.4
3.9
6.3
.3
2.2
3.8
6.2
.3
2.2
3.7
31.0
10.4
.7
7.4
.8
3.0
.1
4.2
3.9
.5
40.4
13.7
.8
9.4
1.2
4.3
.2
6.0
4.5
.4
47.0
13.7
.6
10.6
2.1
5.4
.2
8.1
5.9
.3
53.7
15.5
.7
11.9
2.3
6.5
.2
8.4
7.3
.9
59.3
17.9
.7
12.6
2.4
6.9
.2
10.3
8.1
.3
61.7
21.3
.8
12.1
2.2
6.7
.2
10.3
8.0
.1
63.5
18.9
.7
12.4
3.2
7.6
.2
11.8
8.7
.1
65.2
19.8
.7
12.0
3.2
7.1
.2
12.9
9.3
.1
70.7
23.1
.7
12.2
3.0
7.3
.2
14.3
9.8
.1
70.3
20.1
.8
13.3
3.3
8.0
.1
14.9
9.8
.0
66.6
18.0
.9
12.8
3.3
7.5
.1
14.8
9.1
.0
9.1
11.7
14.0
14.9
15.7
18.2
18.8
18.3
18.2
20.1
17.6
1 Total
2 G-10 countries and Switzerland
3 Belgium-Luxembourg
4 France
5 Germany
6 Italy
7 Netherlands
8 Sweden
9 Switzerland
10 United Kingdom
11 Canada
12 Japan
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Other Latin America
56 Offshore banking centers
57 Bahamas
58 Bermuda
59 Cayman Islands and other British West Indies
60 Netherlands Antilles
61 Panama5
62 Lebanon
63 Hong Kong
64 Singapore
65 Others6
66 Miscellaneous and unallocated7
1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.18 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches). However,
see also footnote 2.
2. Beginning with data for June 1978, the claims of the U.S. offices in this table
include only banks' own claims payable in dollars. For earlier dates the claims of
the U.S. offices also include customer claims and foreign currency claims
(amounting in June 1978 to $10 billion).
3. In addition to the Organization of Petroleum Exporting Countries shown
individually, this group includes other members of OPEC (Algeria, Gabon, Iran,
Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as
well as Bahrain and Oman (not formally members of OPEC).
4. Excludes Liberia.
5. Includes Canal Zone beginning December 1979.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.
A64
International Statistics • May 1983
3.22
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States 1
Millions of dollars, end of period
1981
Type, and area or country
1979
1980
1982
1981
Dec.
Mar.
June
Sept.
Dec.''
1 Total
17,433
22,226
22,480
22,480
22,393
20,965
21,440
21,795
2 Payable in dollars
3 Payable in foreign currencies
14,323
3,110
18,481
3,745
18,758
3,722
18,758
3,722
19,623
2,770
18,182
2,783
18,324
3,116
18,696
3,099
By type
4 Financial liabilities
5 Payable in dollars
6 Payable in foreign currencies
7,523
5,223
2,300
11,330
8,528
2,802
12,117
9,446
2,671
12,117
9,446
2,671
12,599
10,627
1,972
10,028
8,066
1,961
10,707
8,399
2,308
10,253
8,178
2,075
7 Commercial liabilities
8 Trade payables
9 Advance receipts and other liabilities
9,910
4,591
5,320
10,896
4,993
5,903
10.363
4,720
5,643
10,363
4,720
5,643
9,794
4,022
5,773
10,937
5,027
5,910
10,733
4,527
6,206
11,542
4,471
7,071
9,100
811
9,953
943
9,312
1,052
9,312
1,052
8,996
798
10,115
822
9,925
808
10,518
1,024
4,665
338
175
497
829
170
2,477
6,481
479
327
582
681
354
3,923
6,819
471
709
491
748
715
3,559
6,819
471
709
491
748
715
3,559
7,883
605
924
503
755
707
4,282
5,947
518
581
439
517
661
3,084
6,389
494
672
446
759
670
3,212
6,152
502
635
422
702
653
3,061
10
11
12
13
14
15
16
17
18
Payable in dollars
Payable in foreign currencies
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
19
Canada
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
27
28
29
Asia
Japan
Middle East oil-exporting countries 2
30
31
32
33
34
35
36
37
38
39
532
964
958
958
914
758
702
685
1,514
404
81
18
516
121
72
3,136
964
1
23
1,452
99
81
3,356
1,279
7
22
1,241
102
98
3,356
1,279
7
22
1,241
102
98
3,333
1,095
6
27
1,469
67
97
2,805
1,003
7
24
1,044
83
100
2,969
933
14
28
981
85
104
2,683
866
23
28
992
121
114
804
726
31
723
644
38
957
792
75
957
792
75
455
293
63
502
340
66
631
424
67
718
527
70
Africa
Oil-exporting countries3
4
1
11
1
3
0
3
0
2
0
3
0
3
0
4
0
All other 4
4
15
24
24
12
11
13
12
3,709
137
467
545
227
316
1,080
4,402
90
582
679
219
499
1,209
3,771
71
573
545
221
424
880
3,771
71
573
545
221
424
880
3,422
50
504
473
232
400
824
3,742
47
700
457
248
412
850
3,861
50
759
436
281
358
904
3,578
50
602
464
340
335
802
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
40
Canada
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
48
49
50
Japan
Middle East oil-exporting countries 2
924
888
897
897
884
1,116
1,188
1,482
1,325
69
32
203
21
257
301
1,300
8
75
111
35
367
319
1,044
2
67
67
2
340
276
1,044
2
67
67
2
340
276
817
22
71
83
27
210
194
1,418
20
102
62
2
727
219
1,220
6
48
128
3
484
269
1,127
16
89
65
32
475
157
2,991
583
1,014
3,034
802
890
3,285
1,094
910
3,285
1,094
910
3,404
1,090
998
3,298
1,064
958
3,207
1,134
821
3,966
1,028
1,538
51
52
Africa
Oil-exporting countries3
728
384
817
517
703
344
703
344
664
247
732
340
663
248
736
284
53
All other 4
233
456
664
664
604
630
595
653
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
Nonbank-Reported
3.23
CLAIMS ON UNAFFILIATED FOREIGNERS
United States 1
Data
A65
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1982
1981
Type, and area or country
1979
1981
1980
Mar.
Dec.
June
Sept.
Dec.''
1 Total
31,299
34,482
35,672
35,672
30,203
30,483
29,488
27,153
2 Payable in dollars
3 Payable in foreign currencies
28,096
3,203
31,528
2,955
32,071
3,601
32,071
3,601
27,564
2,639
27,983
2,500
26,835
2,653
24,545
2,608
By type
4 Financial claims
5 Deposits
6
Payable in dollars
Payable in foreign currencies
7
8 Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
18,398
12,858
11,936
923
5,540
3,714
1,826
19,763
14,166
13,381
785
5,597
3,914
1,683
20,742
14,688
14,057
631
6,054
3,600
2,454
20,742
14,688
14,057
631
6,054
3,600
2,454
17,748
12,730
12,267
463
5,018
3,362
1,656
18,360
13,603
13,229
374
4,757
3,189
1,568
17,714
12,608
12,194
413
5,106
3,419
1,687
16,432
11,918
11,552
366
4,514
2,833
1,681
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims..
12,901
12,185
716
14,720
13,960
759
14,930
13,965
965
14,930
13,965
965
12,455
11,493
962
12,122
11,069
1,053
11,774
10,709
1,065
10,721
9,752
969
14
15
12,447
454
14,233
487
14,414
516
14,414
516
11,935
520
11,565
557
11,222
552
10,160
561
6,179
32
177
409
53
73
5,099
6,069
145
298
230
51
54
4,987
4,515
43
285
224
50
57
3,525
4,515
43
285
224
50
57
3,525
4,506
16
375
197
79
53
3,549
4,661
13
313
148
56
63
3,795
4,728
16
305
174
52
60
3,749
4,524
10
129
168
30
84
3,839
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
5,003
5,036
6,628
6,628
4,942
4,365
4,322
4,199
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
6,312
2,773
30
163
2,011
157
143
7,811
3,477
135
96
2,755
208
137
8,615
3,925
18
30
3,503
313
148
8,615
3,925
18
30
3,503
313
148
7,432
3,537
27
49
2,797
281
130
8,312
3,845
42
76
3,504
274
134
7,630
3,366
19
76
3,171
268
133
6,783
3,137
13
60
2,656
274
139
31
32
33
Asia
Japan
Middle East oil-exporting countries 2
601
199
16
607
189
20
762
366
37
762
366
37
670
257
36
800
327
33
825
247
30
736
191
15
34
Africa
258
49
208
26
173
46
173
46
164
43
156
41
165
50
158
48
44
32
48
48
34
66
44
31
4,922
202
727
593
298
272
901
5,544
233
1,129
599
318
354
929
5,359
234
776
557
303
427
969
5,359
234
776
557
303
427
969
4,381
246
698
452
227
354
1,062
4,273
211
636
392
297
384
905
4,164
178
646
427
278
258
1,035
3,658
152
465
341
364
328
765
35
36
37
38
39
40
41
42
43
44
Oil-exporting countries 3
All other 4
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
859
914
967
967
943
713
666
635
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,879
21
197
645
16
708
343
3,766
21
108
861
34
1,102
410
3,479
12
223
668
12
1,022
424
3,479
12
223
668
12
1,022
424
2,925
80
212
417
23
762
396
2,787
30
225
423
10
750
383
2,772
19
154
481
7
869
373
2,376
21
259
252
9
672
342
52
53
54
Asia
Japan
Middle East oil-exporting countries 2
3,451
1,177
765
3,522
1,052
825
3,914
1,244
901
3,914
1,244
901
3,155
1,160
757
3,323
1,213
806
3,086
968
775
3,104
1,157
710
55
56
Africa
Oil-exporting countries 3
551
130
653
153
750
152
750
152
587
143
614
138
638
148
535
133
57
All other 4
240
321
461
461
463
413
448
413
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
A66
3.24
International Statistics • May 1983
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1983
Transactions, and area or country
1981
1982
1983
1982
Jan.Mar.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.P
U.S. corporate securities
STOCKS
1 Foreign purchases
2 Foreign sales
40,686
34,856
41,902'
37,948'
17,688
15,038
4,293'
4,400'
5,967
5,675
5,581
5,245
5,839
4,868
5,141
4,376
5,310
4,349
7,237
6,314
3 Net purchases, or sales ( - )
5,830
3,954'
2,650
-107
292
336
971
765
%1
923
4 Foreign countries
5,803
3,869'
2,593
-110
282
325
946
755
940
897
3,662
900
-22
42
288
2,235
783
-30
1,140
287
7
-46
2,5%
-143
333
-60
-529
3,129
221'
304
368
246'
2
131
2,444
107
447
51
536
1,194
298
56
-123
-182
17
84
-268
-43
-43
-62
-144
73
115
-82
134
-16
0
6
175
-30
47
-102
-118
435
5
142
-98
22
0
35
69
-8
26
-24
-208
317
72
54
9
112
2
7
672
43
138
25
226
242
154
39
-153
210
3
22
586
47
84
2
211
183
90
-5
-57
118
6
18
890
52
137
8
223
442
61
83
-13
-91
4
6
%8
8
226
41
101
569
147
-23
-53
-210
8
60
27
85
57
3
10
11
25
10
21
26
17,304'
12,252'
21,631'
20,480'
6,127
6,805
2,288'
2,283'
2,778
2,961'
2,099
2,280
2,099
2,457
1,933
2,278
1,885
1,877
2,310
2,651
5
6
7
8
9
10
11
12
13
14
15
16
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
17 Nonmonetary international and
regional organizations
BONDS 2
18 Foreign purchases
19 Foreign sales
20 Net purchases, or sales ( - )
5,052'
1,151'
-678
5'
-183'
-181
-358
-345
8
-341
21 Foreign countries
4,991'
1,179'
-667
40'
-223'
-190
-348
-343
33
-358
22
23
24
25
26
27
28
29
30
31
32
33
1,371'
11
848
70
108
196'
-12
132
3,465
44
-1
-7
1,848'
295'
2,116'
28'
161
-903'
25
160
-821'
-23
-19
7
-613
-45
-15
19
89
-377
46
33
-286
154
-1
-1
-8C
25
86
-10
-24
-18C
2
19
141'
-47
0
5
408'
-17'
187'
-2
-4
225'
-152
-15
-435
-30
0
0
-236
24
11
-4
-13
-327
10
28
-20
28
0
0
-158
146
43
-1
44
-461
-2
-6
-177
-5
0
-1
-189
-21
-96
16
29
-105
11
23
-211
23
0
0
-148
-2
-35
0
62
-90
15
11
86
72
-1
0
-276
-22
-28
-10
-36
10
-10
-2
-25
17
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
34 Nonmonetary international and
regional organizations
61'
41
116
3
-2
-182
21
-1
-161
59
0
0
Foreign securities
35 Stocks, net purchases, or sales ( - )
36 Foreign purchases
37 Foreign sales
-247'
9,339'
9,586'
-1,340'
7,170'
8,511'
-993
3,260
4,254
-160
545
705
-308
706
1,014
-740
772
1,512
-272
927
1,199
-320
1,032
1,352
-226
1,042
1,268
-447
1,187
1,634
38 Bonds, net purchases, or sales ( - )
39 Foreign purchases
40 Foreign sales
-5,46c
17,553
23,013'
-6,610
29,900'
se.sio'
-1,039
9,090
10,129
-1,140'
3,081'
4,222
-1,331
3,058
4,389
-458'
2,953'
3,411
-417
2,962
3,379
22
2,881
2,859
-278
3,526
3,804
-782
2,683
3,465
41 Net purchases, or sales (—), of stocks and bonds . . . .
-5,707'
-7,95tK
-2,032
— 1,300'
-1,639
-l.UHK
-689
-298
-504
-1,229
42
43
44
45
46
47
48
49
-4,694'
-728'
-3,697
69
-367'
-55
84'
-6,778'
-2,436'
-2,364'
246'
-1,851'
-9
-364
-1,980
-1,598
-638
575
-365
42
4
-809'
-271
-298'
-65
241
1
-416
-1,247
-517
-181
-268
-283
0
3
-1,168'
-572
-7'
-62
-536
4
5
-736
-555
-29
29
-195
4
10
-272'
-307
-20
258
-192'
-9
-2
-817
-687
-449
345
-37
21
-10
-891
-604
-169
-28
-135
30
16
-1,012
-1,172'
-52
-491'
-392
312
-339
Foreign countries
Europe
Canada
Latin America and Caribbean
Asia
Africa
Other countries
Nonmonetary international and
regional organizations
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
-31
47
-26
2. Includes state and local government securities, and securities of U.S.
government agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance direct investments
abroad.
Investment
3.25
Transactions
and Discount Rates
A67
Foreign Holdings and Transactions
MARKETABLE U.S. TREASURY BONDS A N D NOTES
Millions of dollars
1983
1981
Country or area
1983
1982
1982'
Jan.Mar.
Sept/
Oct/
Nov/
Dec/
Jan/
Feb.
Mar.P
Holdings (end of period)1
1 Estimated total2
70,249'
85,169
82,157
83,860
84,667
85,169
85,458
86,057
88,849
2 Foreign countries 2
64,565'
80,586
78,373
79,166
79,447
80,586
80,854
82,098
83,209
2
3 Europe
4 Belgium-Luxembourg
5 Germany 2
6 Netherlands
7 Sweden
8 Switzerland2
9 United Kingdom
10 Other Western Europe
11 Eastern Europe
12 Canada
24,012'
543
11,861
1,991'
643
846
6,709
1,419
0
514
29,274
447
14,841
2,754
667
1,540
6,549
2,476
0
602
28,853
551
14,520
2,374
635
1,233
7,358
2,183
0
428
29,071
834
14,493
2,356
655
1,266
7,237
2,230
0
482
29,447
448
14,704
2,473
687
1,532
7,099
2,505
0
552
29,274
447
14,841
2,754
667
1,540
6,549
2,476
0
602
29,855
716
15,151
2,839
668
1,013
6,721
2,748
0
649
31,039
-87
16,650
3,011
681
1,039
6,941
2,804
0
639
32,348
-332
17,549
3,194
656
1,038
7,478
2,764
0
724
13
14
15
16
17
18
19
20
736
286
319
131
38,671
10,780
631
2
1,076
188
656
232
49,502
11,578
77
55
1,204
221
771
211
47,668
11,410
178
43
1,086
204
657
225
48,288
11,396
178
61
1,231
172
759
300
48,079
11,314
77
62
1,076
188
656
232
49,502
11,578
77
55
1,067
190
720
156
49,146
11,655
77
60
1,050
74
792
185
49,256
11,707
80
34
951
77
690
184
49,076
11,736
80
31
5,684'
5,638
4,583
4,186
6
3,784
3,558
-4
4,694
4,417
-4
5,220
4,939
-4
4,583
4,186
6
4,604
4,165
6
3,959
3,405
6
5,640
4,966
6
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
All other
21 Nonmonetary international and regional organizations
22 International
23 Latin American regional
1
Transactions (net purchases, or sales ( - ) during period)
24 Total2
12,700'
14,920
3,680
1,670
1,703
808
502
289
599
2,792
25 Foreign countries 2
26 Official institutions
27 Other foreign2
28 Nonmonetary international and regional organizations
11,604'
11,73c
-127
1,096'
16,021
14,529
1,487
-1,096
2,623
2,707
-84
1,057
1,627
1,526
101
43
792
641
151
910
281
231
50
527
1,139
1,866
-727
-637
268
20
248
21
1,245
1,567
-323
-645
1,111
1,119
1,681
MEMO: Oil-exporting countries
29 Middle East 3
30 Africa4
11,156
-289
7,534
-552
-625
0
173
-125
209
0
-320
-100
303
0
121
0
-233
0
-514
0
1. Estimated official and private holdings of marketable U.S. Treasury securities with an original maturity of more than 1 year. Data are based on a benchmark
survey of holdings as of Jan. 31, 1971, and monthly transactions reports. Excludes
nonmarketable U.S. Treasury bonds and notes held by official institutions of
foreign countries.
3.26
-9
2. Beginning December 1978, includes U.S. Treasury notes publicly issued to
private foreign residents denominated in foreign currencies.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Rate on Apr. 30, 1983
Rate on Apr. 30, 1983
Country
Country
Percent
Austria..
Belgium.
Brazil...
Canada..
Denmark
3.75
10.0
49.0
9.37
7.5
Month
effective
Mar.
Apr.
Mar.
Apr.
Apr.
1983
1983
1981
1983
1983
Percent
France 1
Germany, Fed. Rep. of
Italy
Japan
Netherlands
1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts
Rate on Apr. 30, 1983
Country
12.5
4.0
17.0
5.5
3.5
Month
effective
Feb.
Mar.
Apr.
Dec.
Mar.
1983
1983
1983
1981
1983
Percent
Norway
Switzerland
United Kingdom 2 .
Venezuela
Month
effective
9.0
4.0
Nov. 1979
Mar. 1983
Sept. 1982
or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to such
discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.
A68
International Statistics • May 1983
3.27
FOREIGN SHORT-TERM INTEREST RATES
Percent per annum, averages of daily figures
1982
Country, or type
1980
1981
Nov.
Oct.
1
2
3
4
5
6
7
8
9
10
1983
1982
Dec.
Jan.
Feb.
Mar.
Apr.
Eurodollars
United Kingdom
Canada
Germany
Switzerland
14.00
16.59
13.12
9.45
5.79
16.79
13.86
18.84
12.05
9.15
12.24
12.21
14.38
8.81
5.04
10.43
9.74
12.14
7.55
3.66
9.77
9.30
11.08
7.24
3.76
9.47
10.55
10.56
6.54
3.71
8.97
11.04
9.87
5.78
2.78
9.14
11.29
9.69
5.79
2.95
9.25
10.92
9.36
5.40
3.64
9.23
10.21
9.39
5.16
4.20
Netherlands
France
Italy
Belgium
Japan
10.60
12.18
17.50
14.06
11.45
11.52
15.28
19.98
15.28
7.58
8.26
14.61
19.99
14.10
6.84
7.09
13.51
18.57
12.75
6.97
6.36
12.98
19.05
12.50
6.98
5.66
12.70
19.20
12.25
6.96
4.97
12.55
18.95
12.25
6.47
4.82
12.88
19.04
12.25
6.64
4.34
12.64
19.19
13.32
6.78
5.19
12.12
18.20
11.05
6.69
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.
3.28
FOREIGN EXCHANGE RATES
Currency units per dollar
1982
Country/currency
1980
1981
1983
1982
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
1
2
3
4
5
6
7
8
9
10
Argentina/peso
Australia/dollar1
Austria/schilling
Belgium/franc
Brazil/cruzeiro
Canada/dollar
Chile/peso
China, P.R./yuan
Colombia/peso
Denmark/krone
n.a.
114.00
12.945
29.237
n.a.
1.1693
n.a.
n.a.
n.a.
5.6345
n.a.
114.95
15.948
37.194
92.374
1.1990
n.a.
1.7031
n.a.
7.1350
20985.00
101.65
17.060
45.780
179.22
1.2344
51.118
1.8978
64.071
8.3443
39200.00
94.27
17.947
49.600
228.51
1.2262
69.050
2.0002
68.168
8.9595
43883.91
96.82
16.994
47.493
244.63
1.2385
72.630
1.9445
69.526
8.5275
48916.66
98.26
16.783
46.888
262.30
1.2287
74.257
1.9238
70.762
8.4171
50239.47
96.62
17.076
47.739
309.01
1.2277
76.863
1.9653
71.751
8.5811
62386.95
88.39
16.940
47.519
401.30
1.2263
76.378
1.9834
73.179
8.6223
66868.56
86.76
17.176
48.577
434.77
1.2325
76.028
1.9938
74.751
8.6663
11
12
13
14
15
16
17
18
19
20
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
IndonesiaMipiah
Iran/rial
Ireland/pound1
Israel/shekel
3.7206
4.2250
1.8175
n.a.
n.a.
7.8866
n.a.
n.a.
205.77
n.a.
4.3128
5.4396
2.2631
n.a.
5.5678
8.6807
n.a.
79.324
161.32
n.a.
4.8086
6.5793
2.428
66.872
6.0697
9.4846
660.43
n.a.
142.05
24.407
5.5263
7.2152
2.5543
72.889
6.6724
9.7968
680.92
n.a.
132.91
31.344
5.3425
6.8548
2.4193
70.788
6.5417
9.6926
687.95
n.a.
137.69
32.966
5.3120
6.7725
2.3893
80.761
6.5252
9.7938
694.62
n.a.
139.16
34.863
5.3907
6.8855
2.4280
83.621
6.6060
9.9184
700.01
n.a.
136.81
36.986
5.4266
7.0204
2.4110
83.897
6.6536
9.9652
714.72
n.a.
134.79
38.867
5.4342
7.3148
2.4397
84.037
6.7868
9.9824
970.81
n.a.
129.53
40.951
21
77
23
24
25
26
27
28
29
30
Italyflira
Japan/yen
Malaysia/ringgit
Mexico/peso
Netherlands/guilder 1
New Zealand/dollar
Norway/krone
Peru/sol
Philippines/peso
Portugal/escudo
856.20
226.63
2.1767
22.968
1.9875
97.34
4.9381
n.a.
n.a.
50.082
1138.60
220.63
2.3048
24.547
2.4998
86.848
5.7430
n.a.
7.8113
61.739
1354.00
249.06
2.3395
72.990
2.6719
75.101
6.4567
694.59
8.5324
80.101
1468.84
264.09
2.3647
130.61
2.7861
71.092
7.2397
878.66
8.8733
91.911
1398.74
241.94
2.3529
147.35
2.6698
72.569
7.0346
942.47
9.0546
92.685
1374.71
232.73
2.2822
150.75
2.6310
72.921
7.0447
1019.54
9.2632
94.548
1399.78
236.12
2.2757
157.81
2.6779
71.895
7.1171
1087.43
9.4488
93.771
1429.72
238.25
2.2898
161.78
2.6834
66.642
7.1852
1160.19
9.5896
95.867
1451.88
237.75
2.3063
153.77
2.7486
65.726
7.1460
1284.37
9.8449
99.055
31
32.
33
34
35
36
37
38
39
40
Singapore/dollar
South Africa/rand1
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Thailand/baht
United Kingdom/pound1
Venezuela/bolivar
n.a.
128.54
n.a.
71.758
16.167
4.2309
1.6772
n.a.
232.58
n.a.
2.1053
114.77
n.a.
92.396
18.967
5.0659
1.9674
21.731
202.43
4.2781
2.1406
92.297
731.93
110.09
20.756
6.2838
2.0327
23.014
174.80
4.2981
2.2123
87.77
745.60
119.09
21.009
7.5095
2.1931
23.000
163.21
4.2996
2.1522
92.03
746.36
126.125
21.166
7.3555
2.0588
23.000
161.60
4.2971
2.0768
93.82
749.80
126.844
21.378
7.3227
1.9679
23.000
157.56
4.2973
2.0758
91.04
752.19
129.886
22.355
7.4385
2.0180
22.999
153.29
4.3101
2.0854
91.64
757.94
133.498
22.982
7.4882
2.0663
22.991
149.00
7.9500
2.1010
91.42
765.29
135.99
22.971
7.4941
2.0587
22.990
153.61
9.0429
102.94
116.57
124.27
119.22
117.73
119.70
120.71
121.82
MEMO:
United States/dollar2
87.39
1. Value in U.S. cents.
2. Index of weighted-average exchange value of U.S. dollar against currencies
of other G-10 countries plus Switzerland. March 1973 = 100. Weights are 1972-76
global trade of each of the 10 countries. Series revised as of August 1978. For
description and back data, see "Index of the Weighted-Average Exchange Value
of the U.S. Dollar: Revision" on page 700 of the August 1978 BULLETIN.
NOTE. Averages of certified noon buying rates in New York for cable tranfers.
A69
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE TO TABULAR
Symbols
c
e
p
r
*
and
PRESENTATION
Abbreviations
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when
about half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000 when
the smallest unit given is millions)
General
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed
issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
STATISTICAL
List Published
obligations of the Treasury. "State and local government"
also includes municipalities, special districts, and other political subdivisions.
In some of the tables details do not add to totals because of
rounding.
RELEASES
Semiannually,
with Latest Bulletin
Reference
Issue
December 1982
Anticipated schedule of release dates for periodic releases
SPECIAL
and
and
and
and
and
and
and
and
Issue
July 1982
October 1982
January 1983
April 1983
July 1982
October 1982
January 1983
April 1983
Page
A70
A70
A70
A70
A76
A76
A76
A76
TABLES
Published Irregularly,
Assets
Assets
Assets
Assets
Assets
Assets
Assets
Assets
Page
A76
liabilities
liabilities
liabilities
liabilities
liabilities
liabilities
liabilities
liabilities
of
of
of
of
of
of
of
of
with Latest Bulletin
commercial banks,
commercial banks,
commercial banks,
commercial banks,
U.S. branches and
U.S. branches and
U.S. branches and
U.S. branches and
Reference
March 31, 1982
June 30, 1982
September 30, 1982
December 31, 1982
agencies of foreign banks,
agencies of foreign banks,
agencies of foreign banks,
agencies of foreign banks,
March 31, 1982
June 30, 1982
September 30, 1982
December 31, 1982
A70
Federal Reserve Board of Governors
P A U L A . V O L C K E R , Chairman
HENRY C . WALLICH
PRESTON M A R T I N , Vice
J. CHARLES PARTEE
OFFICE
OF BOARD
Chairman
OFFICE OF STAFF DIRECTOR
MONETARY
AND FINANCIAL
MEMBERS
JOSEPH R. COYNE, Assistant
DONALD J. WINN, Assistant
to the
to the
Board
Board
FRANK O'BRIEN, JR., Deputy Assistant to the Board
ANTHONY F. COLE, Special Assistant to the Board
WILLIAM R. JONES, Special Assistant to the Board
WILLIAM R. MALONI, Special Assistant to the Board
NAOMI P. SALUS, Special Assistant to the Board
STEPHEN H . AXILROD, Staff
DIVISION
STANLEY J. SIGEL, Assistant
OF RESEARCH
JAMES L . K I C H L I N E ,
Counsel
Director
to the
Board
NORMAND R.V. BERNARD, Special Assistant
AND
to the Board
STATISTICS
Director
JOSEPH S. ZEISEL, Deputy
MICHAEL BRADFIELD, General
Director
EDWARD C. ETTIN, Deputy Staff
DIVISION
LEGAL
FOR
POLICY
Director
MICHAEL J. PRELL, Senior Associate
Director
J. VIRGIL MATTINGLY, JR., Associate General Counsel
GILBERT T. SCHWARTZ, Associate General Counsel
RICHARD M. ASHTON, Assistant General Counsel
NANCY P. JACKLIN, Assistant General Counsel
MARYELLEN A. BROWN, Assistant to the General Counsel
JARED J. ENZLER, Associate
Director
DONALD L. KOHN, Associate
Director
ELEANOR J. STOCKWELL, Associate
Director
MARTHA BETHEA, Assistant
Director
OFFICE
JOE M. CLEAVER, Assistant
Director
OF THE
SECRETARY
WILLIAM W . W I L E S ,
Secretary
BARBARA R. LOWREY, Associate
Secretary
JAMES MCAFEE, Associate
Secretary
DAVID E. LINDSEY, Deputy Associate
Director
FREDERICK M. STRUBLE, Deputy Associate
Director
HELMUT F. WENDEL, Deputy Associate
Director
ROBERT M . FISHER, Assistant
Director
SUSAN J. LEPPER, Assistant
Director
THOMAS D . SIMPSON, Assistant
Director
Director
JERAULD C. KLUCKMAN, Associate
Director
GLENN E. LONEY, Assistant
Director
DOLORES S. SMITH, Assistant
Director
JOHN E . R Y A N ,
BANKING
AND
REGULATION
Director
WILLIAM TAYLOR, Deputy
Director
FREDERICK R. DAHL, Associate
Director
DON E. KLINE, Associate
Director
JACK M. EGERTSON, Assistant
Director
ROBERT A . JACOBSEN, Assistant
ROBERT S. PLOTKIN, Assistant
THOMAS A . SIDMAN, Assistant
SIDNEY M. SUSSAN, Assistant
SAMUEL H . TALLEY, Assistant
LAURA M. HOMER, Securities
Director
PETER A. TINSLEY, Assistant
Director
LEVON H. GARABEDIAN, Assistant Director
DIVISION
OF
CONSUMER
AND COMMUNITY
AFFAIRS
DIVISION
OF
SUPERVISION
Director
STEPHEN P. TAYLOR, Assistant
GRIFFITH L . G A R W O O D ,
LAWRENCE SLIFMAN, Assistant
Director
Director
Director
Director
Director
Credit Officer
DIVISION
OF INTERNATIONAL
EDWIN M . TRUMAN,
(Administration)
FINANCE
Director
ROBERT F. GEMMILL, Senior Associate
Director
CHARLES J. SIEGMAN, Senior Associate
Director
LARRY J. PROMISEL, Associate
Director
DALE W. HENDERSON, Deputy Associate
Director
SAMUEL PIZER, Staff
Adviser
MICHAEL P. DOOLEY, Assistant
RALPH W . SMITH, JR., Assistant
Director
Director
A71
and Official Staff
NANCY H . TEETERS
LYLE E . GRAMLEY
EMMETT J. RICE
OFFICE OF
STAFF DIRECTOR
FOR
S. DAVID FROST, Staff
MANAGEMENT
Director
EDWARD T. MULRENIN, Assistant
DIVISION
OF DATA
Staff
Director
WILLIAM C. SCHNEIDER, JR., Assistant
ROBERT J. ZEMEL, Assistant
Director
DAVID L . SHANNON,
Director
BRENT L . BOWEN, Assistant
DIVISION
Director
CONTROLLER
GEORGE E . LIVINGSTON,
OF SUPPORT
DONALD E . ANDERSON,
Controller
Controller
SERVICES
Director
ROBERT E . FRAZIER, Associate
Director
WALTER W . KREIMANN, Associate
Director
OF FEDERAL
OPERATIONS
Opportunity
RESERVE
C L Y D E H . FARNSWORTH, J R . ,
LORIN S. MEEDER, Associate
DAVID L. ROBINSON, Associate
Director
Director
Director
C. WILLIAM SCHLEICHER, JR., Associate
Director
WALTER ALTHAUSEN, Assistant
Director
CHARLES W . BENNETT, Assistant
Director
ANNE M . DEBEER, Assistant
Director
JACK DENNIS, JR., Assistant
Director
RICHARD B . GREEN, Assistant
Director
EARL G. HAMILTON, Assistant
Director
CHARLES W . WOOD, Assistant
OF THE
Director
PERSONNEL
JOHN R. WEIS, Assistant
OFFICE
THEODORE E. ALLISON, Staff Director
JOSEPH W. DANIELS, SR., Equal Employment
Programs
Adviser
DIVISION
BANK
Director
BRUCE M. BEARDSLEY, Deputy Director
GLENN L. CUMMINS, Assistant
Director
NEAL H. HILLERMAN, Assistant
Director
ELIZABETH A. JOHNSON, Assistant
Director
OF
FOR
ACTIVITIES
PROCESSING
CHARLES L . H A M P T O N ,
DIVISION
OFFICE OF STAFF DIRECTOR
FEDERAL RESERVE
BANK
ELLIOTT C. MCENTEE, Assistant
Director
Director
72
Federal Reserve Bulletin • May 1983
FOMC and Advisory Councils
FEDERAL OPEN MARKET
COMMITTEE
P A U L A . VOLCKER, Chairman
A N T H O N Y M . SOLOMON, Vice
LYLE E . GRAMLEY
PRESTON MARTIN
EMMETT J. RICE
ROGER G U F F E Y
FRANK E . MORRIS
THEODORE H . ROBERTS
SILAS K E E H N
J. CHARLES PARTEE
N A N C Y H . TEETERS
HENRY C . WALLICH
STEPHEN H. AXILROD, Staff Director and
N O R M A N D R . V . BERNARD, Assistant
NANCY M. STEELE, Deputy Assistant
MICHAEL BRADFIELD, General
Secretary
Secretary
Secretary
Counsel
JAMES H. OLTMAN, Deputy General
Counsel
JAMES L . KICHLINE,
Economist
E D W I N M . T R U M A N , Economist
(International)
ANATOL BALBACH, Associate
Economist
RICHARD G . DAVIS, Associate
Economist
THOMAS E . DAVIS, Associate
Economist
ROBERT EISENMENGER, Associate
Economist
E D W A R D C . E T T I N , Associate
Economist
MICHAEL J. PRELL, Associate
Economist
KARL A . SCHELD, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
JOSEPH S . ZEISEL, Associate
Economist
PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account
SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account
FEDERAL ADVISORY
COUNCIL
RONALD TERRY, Eighth District, President
WILLIAM S. EDGERLY, First District, Vice President
ROGER E . ANDERSON, S e v e n t h D i s t r i c t
E . PETER GILLETTE, JR., N i n t h D i s t r i c t
N . BERNE HART, T e n t h D i s t r i c t
LEWIS T . PRESTON, S e c o n d D i s t r i c t
JOHN H . WALTHER, T h i r d D i s t r i c t
JOHN G . M C C O Y , F o u r t h D i s t r i c t
VINCENT C . BURKE, JR., F i f t h D i s t r i c t
PHILIP F . SEARLE, S i x t h D i s t r i c t
T.C. FROST, JR., Eleventh District
JOSEPH J. PINOLA, T w e l f t h D i s t r i c t
HERBERT V . PROCHNOW,
WILLIAM J. KORSVIK, Associate
CONSUMER ADVISORY
Secretary
Secretary
COUNCIL
SUSAN PIERSON D E WITT, C h i c a g o , I l l i n o i s ,
Chairman
WILLIAM J. O'CONNOR, JR., Buffalo, New York, Vice
ARTHUR F. BOUTON, Little Rock, Arkansas
JAMES G . BOYLE, A u s t i n , T e x a s
GERALD R. CHRISTENSEN, Salt Lake City, Utah
THOMAS L . CLARK, JR., N e w Y o r k , N e w Y o r k
JEAN A . CROCKETT, P h i l a d e l p h i a , P e n n s y l v a n i a
JOSEPH N. CUGINI, Westerly, Rhode Island
MEREDITH FERNSTROM, N e w Y o r k , N e w Y o r k
A L L E N J. FISHBEIN, W a s h i n g t o n , D . C .
E.C.A. FORSBERG, SR., Atlanta, Georgia
LUTHER R . GATLING, N e w Y o r k , N e w
York
RICHARD F. HALLIBURTON, Kansas City, Missouri
CHARLES C . H O L T , A u s t i n , T e x a s
GEORGE S . IRVIN, D e n v e r , C o l o r a d o
HARRY N . JACKSON, M i n n e a p o l i s , M i n n e s o t a
Chairman
K E N N E T H V . LARKIN, S a n F r a n c i s c o , C a l i f o r n i a
TIMOTHY D . MARRINAN, M i n n e a p o l i s , M i n n e s o t a
STANLEY L . MULARZ, C h i c a g o , I l l i n o i s
WILLARD P . OGBURN, B o s t o n , M a s s a c h u s e t t s
ELVA QUIJANO, S a n A n t o n i o , T e x a s
JANET J. RATHE, P o r t l a n d , O r e g o n
JANET M. SCACCIOTTI, Providence, Rhode Island
G L E N D A G . SLOANE, W a s h i n g t o n , D . C .
HENRY J. SOMMER, P h i l a d e l p h i a , P e n n s y l v a n i a
N A N C Y Z . SPILLMAN, L o s A n g e l e s , C a l i f o r n i a
W I N N I E F . TAYLOR, G a i n e s v i l l e , F l o r i d a
MICHAEL M . V A N BUSKIRK, C o l u m b u s , O h i o
CLINTON W A R N E , C l e v e l a n d , O h i o
FREDERICK T . WEIMER, C h i c a g o , I l l i n o i s
Chairman
A73
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
Robert P. Henderson
Thomas I. Atkins
Frank E. Morris
James A. Mcintosh
NEW YORK*
10045
John Brademas
Gertrude G. Michelson
M. Jane Dickman
Anthony M. Solomon
Thomas M. Timlen
Buffalo
14240
Vice President
in charge of branch
John T. Keane
PHILADELPHIA
19105
Robert M. Landis, Esq.
Nevius M. Curtis
Edward G. Boehne
Richard L. Smoot
CLEVELAND*
44101
J.L. Jackson
William H. Knoell
Clifford R. Meyer
Milton G. Hulme, Jr.
Karen N. Horn
William H. Hendricks
Steven Muller
William S. Lee, III
Edward H. Covell
Dr. Henry Ponder
Robert P. Black
Jimmie R. Monhollon
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
Charlotte
21203
28230
Robert E. Showalter
Harold J. Swart
Robert D. McTeer, Jr.
Stuart P. Fishbume
Culpeper Communications
and Records Center
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
22701
30301
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Albert D. Tinkelenberg
William A. Fickling, Jr.
John H. Weitnauer, Jr.
Samuel R. Hill, Jr.
Joan W. Stein
Eugene E. Cohen
Robert C.H. Mathews, Jr.
Roosevelt Steptoe
William F. Ford
Robert P. Forrestal
John Sagan
Stanton R. Cook
Russell G. Mawby
Silas Keehn
Daniel M. Doyle
W.L. Hadley Griffin
Mary P. Holt
Richard V. Warner
William C. Ballard, Jr.
G. Rives Neblett
Theodore H. Roberts
Donald W. Moriarty, Jr.
William G. Phillips
John B. Davis, Jr.
Gene J. Etchart
E. Gerald Corrigan
Thomas E. Gainor
Paul H. Henson
Doris M. Drury
James E. Nielson
Christine H. Anthony
Robert G. Lueder
Roger Guffey
Henry R. Czerwinski
Gerald D. Hines
John V. James
Chester J. Kesey
Paul N. Howell
Carlos Zuniga
Robert H. Boykin
William H. Wallace
Caroline L. Ahmanson
Alan C. Furth
Bruce M. Schwaegler
John C. Hampton
Wendell J. Ashton
John W. Ellis
John J. Balles
John B. Williams
Fred R. HenCharles D. East
Patrick K. Barron
Jeffrey J. Wells
James D. Hawkins
William C. Conrad
John F. Breen
Donald L. Henry
Randall C. Sumner
Robert F. McNellis
Wayne W. Martin
William G. Evans
Robert D. Hamilton
Joel L. Koonce, Jr.
J.Z. Rowe
Thomas H. Robertson
Richard C. Dunn
Angelo S. Carella
A. Grant Holman
Gerald R. Kelly
*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, N e w Jersey 07016;
Jericho, N e w York 11753; Utica at Oriskany, N e w York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
A74
Federal Reserve Board Publications
Copies are available from PUBLICATIONS SERVICES,
Mail Stop 138, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551. When a charge is indicat-
ed, remittance should accompany request and be made
THE
FEDERAL RESERVE SYSTEM—PURPOSES
TIONS. 1 9 7 4 . 125 p p .
A N N U A L REPORT.
AND
FUNC-
$2.00 each in the United States, its possessions, Canada,
and Mexico; 10 or more of same issue to one address,
$18.00 per year or $1.75 each. Elsewhere, $24.00 per
year or $2.50 each.
BANKING A N D MONETARY STATISTICS. 1 9 1 4 - 1 9 4 1 . ( R e p r i n t
of Part I only) 1976. 682 pp. $5.00.
AND
MONETARY
STATISTICS,
Parts 2 and 3, $1.00 each; 10 or more to one address, $.85
each.
OPEN MARKET POLICIES A N D OPERATING
FEDERAL RESERVE B U L L E T I N . M o n t h l y . $ 2 0 . 0 0 p e r y e a r o r
BANKING
payable to the order of the Board of Governors of the Federal
Reserve System. Remittance from foreign residents should
be drawn on a U.S. bank. Stamps and coupons are not
accepted.
PROCEDURES—
STAFF STUDIES. 1971. 218 pp. $2.00 each; 10 or more to
one address, $1.75 each.
REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHANISM. Vol. I. 1 9 7 1 . 2 7 6 p p . Vol. 2. 1 9 7 1 . 173 p p . Vol. 3.
1972. 220 pp. Each volume $3.00; 10 or more to one
address, $2.50 each.
T H E ECONOMETRICS OF PRICE DETERMINATION
1941-1970.
1976.
1,168 pp. $15.00.
A N N U A L STATISTICAL DIGEST
1971-75. 1976. 339 pp. $ 5.00 per copy.
1972-76. 1977. 377 pp. $10.00 per copy.
1973-77. 1978. 361 pp. $12.00 per copy.
1974-78. 1980. 305 pp. $10.00 per copy.
1970-79. 1981. 587 pp. $20.00 per copy.
1980.
1981. 241 pp. $10.00 per copy.
1981.
1982. 239 pp. $ 6.50 per copy.
FEDERAL RESERVE CHART BOOK. Issued four times a year in
February, May, August, and November. Subscription
includes one issue of Historical Chart Book. $7.00 per
year or $2.00 each in the United States, its possessions,
Canada, and Mexico. Elsewhere, $10.00 per year or
$3.00 each.
HISTORICAL CHART BOOK. Issued annually in Sept. Subscription to the Federal Reserve Chart Book includes one
issue. $1.25 each in the United States, its possessions,
Canada, and Mexico; 10 or more to one address, $1.00
each. Elsewhere, $1.50 each.
SELECTED INTEREST A N D EXCHANGE RATES—WEEKLY SE-
CONFER-
ENCE, October 30-31, 1970, Washington, D.C. 1972. 397
pp. Cloth ed. $5.00 each; 10 or more to one address,
$4.50 each. Paper ed. $4.00 each; 10 or more to one
address, $3.60 each.
FEDERAL RESERVE S T A F F S T U D Y : W A Y S TO MODERATE
FLUCTUATIONS IN HOUSING CONSTRUCTION. 1 9 7 2 . 4 8 7
pp. $4.00 each; 10 or more to one address, $3.60 each.
L E N D I N G FUNCTIONS OF THE FEDERAL RESERVE BANKS.
1973; 271 pp. $3.50 each; 10 or more to one address,
$3.00 each.
IMPROVING THE MONETARY AGGREGATES: REPORT OF THE
ADVISORY COMMITTEE ON MONETARY STATISTICS.
1976. 43 pp. $1.00 each; 10 or more to one address, $.85
each.
A N N U A L PERCENTAGE RATE TABLES ( T r u t h in
Lending—
Regulation Z) Vol. I (Regular Transactions). 1969. 100
pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each
volume $1.00; 10 or more of same volume to one
address, $.85 each.
FEDERAL RESERVE MEASURES OF CAPACITY A N D CAPACITY
UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one
address, $1.50 each.
RIES OF CHARTS. Weekly. $15.00 per year or $.40 each in
the United States, its possessions, Canada, and Mexico;
10 or more of same issue to one address, $13.50 per
year or $.35 each. Elsewhere, $20.00 per year or $.50
each.
THE FEDERAL RESERVE ACT, as amended through December
1976, with an appendix containing provisions of certain
other statutes affecting the Federal Reserve System. 307
pp. $2.50.
THE BANK
REGULATIONS OF THE BOARD OF GOVERNORS OF THE F E D ERAL RESERVE SYSTEM.
REPORT OF THE JOINT TREASURY-FEDERAL RESERVE S T U D Y
OF THE U . S . GOVERNMENT SECURITIES MARKET. 1 9 6 9 .
INTRODUCTION TO F L O W OF F U N D S . 1 9 8 0 . 6 8 p p . $ 1 . 5 0 e a c h ;
48 pp. $.25 each; 10 or more to one address, $.20 each.
JOINT TREASURY-FEDERAL RESERVE S T U D Y OF THE GOVERNMENT SECURITIES MARKET; STAFF S T U D I E S — P A R T
1. 1970. 86 pp. $.50 each; 10 or more to one address, $.40
e a c h . PART 2 , 1 9 7 1 . 153 p p . a n d PART 3 , 1 9 7 3 . 131 p p .
HOLDING COMPANY
MOVEMENT TO 1978:
A
COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to
one address, $2.25 each.
IMPROVING THE MONETARY AGGREGATES: S T A F F PAPERS.
1978. 170 pp. $4.00 each; 10 or more to one address,
$3.75 each.
1977 CONSUMER CREDIT SURVEY. 1 9 7 8 . 1 1 9 p p . $ 2 . 0 0 e a c h .
FLOW OF F U N D S ACCOUNTS. 1 9 4 9 - 1 9 7 8 . 1 9 7 9 . 171 p p . $ 1 . 7 5
each; 10 or more to one address, $1.50 each.
10 or more to one address, $1.25 each.
PUBLIC POLICY A N D CAPITAL FORMATION.
1981. 326
pp.
$13.50 each.
N E W MONETARY CONTROL PROCEDURES:
SERVE S T A F F S T U D Y , 1 9 8 1 .
FEDERAL
RE-
SEASONAL ADJUSTMENT OF THE MONETARY AGGREGATES:
REPORT OF THE COMMITTEE OF EXPERTS ON SEASONAL
ADJUSTMENT TECHNIQUES. 1981. 55 pp. $2.75 each.
A75
FEDERAL RESERVE REGULATORY SERVICE. L o o s e l e a f ; u p d a t -
ed at least monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $60.00 per
year.
Monetary Policy and Reserve Requirements Handbook.
$60.00 per year.
Securities Credit Transactions Handbook. $60.00 per year.
Federal Reserve Regulatory Service. 3 vols. (Contains all
three Handbooks plus substantial additional material.)
$175.00 per year.
Rates for subscribers outside the United States are as
follows and include additional air mail costs:
Federal Reserve Regulatory Service, $225.00 per year.
Each Handbook, $75.00 per year.
WELCOME TO THE FEDERAL RESERVE, D e c e m b e r 1 9 8 2 .
PROCESSING B A N K HOLDING COMPANY A N D MERGER APPLICATIONS
SUSTAINABLE RECOVERY: SETTING THE STAGE, N o v e m b e r
1982.
REMARKS BY CHAIRMAN P A U L A . VOLCKER, AT A N N U A L
H U M A N RELATIONS A W A R D D I N N E R , D e c e m b e r 1 9 8 2 .
REMARKS BY CHAIRMAN P A U L A . VOLCKER, AT DEDICATION
CEREMONIES: FEDERAL RESERVE B A N K OF S A N FRANCISCO, MARCH 1 9 8 3 .
CONSUMER EDUCATION
classroom
use.
Multiple
Alice in Debitland
Consumer Handbook to Credit Protection Laws
The Equal Credit Opportunity Act and . . . Age
The Equal Credit Opportunity Act and . . . Credit Rights in
Housing
The Equal Credit Opportunity Act and . . . Doctors, Lawyers, Small Retailers, and Others Who May Provide
Incidental Credit
The Equal Credit Opportunity Act and . . . Women
Fair Credit Billing
Federal Reserve Glossary
Guide to Federal Reserve Regulations
How to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You Use A Credit Card
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Monetary Control Act of 1980
Organization and Advisory Committees
Truth in Leasing
U.S. Currency
What Truth in Lending Means to You
Only Printed in the
Studies and papers on economic and financial subjects
that are of general interest. Requests to obtain single
copies of the full text or to be added to the mailing list for
the series may be sent to Publications
Services.
BELOW THE BOTTOM L I N E : T H E U S E OF CONTINGENCIES
AND COMMITMENTS BY COMMERCIAL BANKS, b y B e n j a -
min Wolkowitz and others. Jan. 1982. 186 pp.
MULTIBANK HOLDING COMPANIES: RECENT EVIDENCE ON
COMPETITION A N D PERFORMANCE IN BANKING MAR-
KETS, by Timothy J. Curry and John T. Rose. Jan. 1982.
9 pp.
COSTS, SCALE ECONOMIES, COMPETITION, A N D PRODUCT
MIX IN THE U . S . PAYMENTS MECHANISM, b y D a v i d B .
Humphrey. Apr. 1982. 18 pp.
DIVISIA
MONETARY
AGGREGATES:
COMPILATION,
DATA,
AND HISTORICAL BEHAVIOR, by William A. Barnett and
Paul A. Spindt. May 1982. 82 pp.
T H E COMMUNITY REINVESTMENT A C T A N D CREDIT ALLO-
CATION, by Glenn Canner. June 1982. 8 pp.
INTEREST RATES A N D TERMS ON CONSTRUCTION LOANS AT
COMMERCIAL BANKS, by David F. Seiders. July 1982.
14 pp.
STRUCTURE-PERFORMANCE STUDIES IN BANKING: A N U P DATED SUMMARY A N D EVALUATION, b y S t e p h e n A .
PAMPHLETS
Short pamphlets
suitable for
copies available without charge.
STAFF STUDIES. Summaries
Bulletin
Rhoades. Aug. 1982. 15 pp.
FOREIGN SUBSIDIARIES OF U . S . BANKING ORGANIZATIONS,
by James V. Houpt and Michael G. Martinson. Oct.
1982. 18 pp.
REDLINING:
RESEARCH
AND
FEDERAL
LEGISLATIVE
RE-
SPONSE, by Glenn B. Canner. Oct. 1982. 20 pp.
BANK CAPITAL TRENDS A N D FINANCING,
by
Samuel
H.
Talley. Feb. 1983. 19 pp.
REPRINTS
Most of the articles reprinted do not exceed 12 pages.
Perspectives on Personal Saving. 8/80.
Federal Reserve and the Payments System: Upgrading Electronic Capabilities for the 1980s. 2/81.
Survey of Finance Companies, 1980. 5/81.
Bank Lending in Developing Countries. 9/81.
The Commercial Paper Market since the Mid-Seventies. 6/82.
Applying the Theory of Probable Future Competition. 9/82.
International Banking Facilities. 10/82.
U.S. International Transactions in 1982. 4/83.
A76
Index to Statistical Tables
References
are to pages A3 through A68 although the prefix 'A"
ACCEPTANCES, bankers, 11, 26, 28
Agricultural loans, commercial banks, 19, 20, 21, 27
Assets and liabilities (See also Foreigners)
Banks, by classes, 18, 19-22
Domestic finance companies, 39
Federal Reserve Banks, 12
Foreign banks, U.S. branches and agencies, 23
Nonfinancial corporations, 38
Savings institutions, 30
Automobiles
Consumer installment credit, 42, 43
Production, 48, 49
BANKERS balances, 18, 19-21
(See also Foreigners)
Banks for Cooperatives, 35
Bonds (See also U.S. government securities)
New issues, 36
Rates, 3
Branch banks, 16, 22-23, 56
Business activity, nonfinancial, 46
Business expenditures on new plant and equipment, 38
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 18
Federal Reserve Banks, 12
Central banks, 67
Certificates of deposit, 22, 28
Commercial and industrial loans
Commercial banks, 16, 18, 23, 27
Weekly reporting banks, 19-23, 24
Commercial banks
Assets and liabilities, 18, 19-22
Business loans, 27
Commercial and industrial loans, 16, 18, 23, 24, 27
Consumer loans held, by type, 42, 43
Loans sold outright, 22
Nondeposit funds, 17
Number, by classes, 18
Real estate mortgages held, by holder and property, 41
Time and savings deposits, 3
Commercial paper, 3, 26, 28, 39
Condition statements (See Assets and liabilities)
Construction, 46, 50
Consumer installment credit, 42, 43
Consumer prices, 46, 51
Consumption expenditures, 52, 53
Corporations
Profits and their distribution, 37
Security issues, 36, 66
Cost of living (See Consumer prices)
Credit unions, 30, 42, 43
(See also Thrift institutions)
Currency and coin, 5, 18
Currency in circulation, 4, 14
Customer credit, stock market, 29
DEBITS to deposit accounts, 15
Debt (See specific types of debt or securities)
Demand deposits
Adjusted, commercial banks, 15
Banks, by classes, 18, 19-22
is omitted in this index
Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 25
Turnover, 15
Depository institutions
Reserve requirements, 8
Reserves and related items, 3, 4, 5, 13
Deposits (See also specific types)
Banks, by classes, 3, 18, 19-22, 30
Federal Reserve Banks, 4, 12
Turnover, 15
Discount rates at Reserve Banks and at foreign central
banks (See Interest rates)
Discounts and advances by Reserve Banks (See
Loans)
Dividends, corporate, 37
EMPLOYMENT, 46, 47
Eurodollars, 28
FARM mortgage loans, 41
Federal agency obligations, 4, 11, 12, 13, 34
Federal credit agencies, 35
Federal finance
Debt subject to statutory limitation and types and
ownership of gross debt, 33
Receipts and outlays, 31, 32
Treasury financing of surplus, or deficit, 31
Treasury operating balance, 31
Federal Financing Bank, 31, 35
Federal funds, 3, 6, 19, 20, 21, 28, 31
Federal Home Loan Banks, 35
Federal Home Loan Mortgage Corporation, 35, 40, 41
Federal Housing Administration, 35, 40, 41
Federal Intermediate Credit Banks, 35
Federal Land Banks, 35, 41
Federal National Mortgage Association, 35, 40, 41
Federal Reserve Banks
Condition statement, 12
Discount rates (See Interest rates)
U.S. government securities held, 4, 12, 13, 33
Federal Reserve credit, 4, 5, 12, 13
Federal Reserve notes, 12
Federally sponsored credit agencies, 35
Finance companies
Assets and liabilities, 39
Business credit, 39
Loans, 19, 20, 21, 42, 43
Paper, 26, 28
Financial institutions
Loans to, 19, 20, 21
Selected assets and liabilities, 30
Float, 4
Flow of funds, 44, 45
Foreign banks, assets and liabilities of U.S. branches and
agencies, 23
Foreign currency operations, 12
Foreign deposits in U.S. banks, 4, 12, 19, 20, 21
Foreign exchange rates, 68
Foreign trade, 55
Foreigners
Claims on, 56, 58, 61, 62, 63, 65
Liabilities to, 22, 55, 56-60, 64, 66, 67
All
GOLD
Certificate account, 12
Stock, 4, 55
Government National Mortgage Association, 35, 40, 41
Gross national product, 52, 53
HOUSING, new and existing units, 50
INCOME, personal and national, 46, 52, 53
Industrial production, 46, 48
Installment loans, 42, 43
Insurance companies, 30, 33, 41
Interbank loans and deposits, 18
Interest rates
Bonds, 3
Business loans of banks, 27
Federal Reserve Banks, 3, 7
Foreign central banks and foreign countries, 67
Money and capital markets, 3, 28
Mortgages, 3, 40
Prime rate, commercial banks, 27
Time and savings deposits, 9
International banking facilities, 17
International capital transactions of United States, 54-67
International organizations, 58, 59-61, 64-67
Inventories, 52
Investment companies, issues and assets, 37
Investments (See also specific types)
Banks, by classes, 18, 30
Commercial banks, 3, 16, 18, 19-21
Federal Reserve Banks, 12, 13
Savings institutions, 30, 41
LABOR force, 47
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 18, 19-22
Commercial banks, 3, 16, 18, 19-22, 23, 27
Federal Reserve Banks, 3, 4, 5, 7, 12, 13
Insured or guaranteed by United States, 40, 41
Savings institutions, 30, 41
MANUFACTURING
Capacity utilization, 46
Production, 46, 49
Margin requirements, 29
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 6
Reserve requirements, 8
Mining production, 49
Mobile home shipments, 50
Monetary and credit aggregates, 3, 13
Money and capital market rates (See Interest
rates)
Money stock measures and components, 3, 14
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 9, 19-21, 30, 33, 41, 42, 43
(See also Thrift institutions)
NATIONAL defense outlays, 32
National income, 52
OPEN market transactions, 11
PERSONAL income, 53
Prices
Consumer and producer, 46, 51
Stock market, 29
Prime rate, commercial banks, 27
Producer prices, 46, 51
Production, 46, 48
Profits, corporate, 37
REAL estate loans
Banks, by classes, 19-21, 41
Rates, terms, yields, and activity, 3, 40
Savings institutions, 28
Type of holder and property mortgaged, 41
Repurchase agreements and federal funds, 6, 19, 20, 21
Reserve requirements, 8
Reserves
Commercial banks, 18
Depository institutions, 3, 4, 5, 13
Federal Reserve Banks, 12
U.S. reserve assets, 55
Residential mortgage loans, 40
Retail credit and retail sales, 42, 43, 46
SAVING
Flow of funds, 44, 45
National income accounts, 53
Savings and loan associations, 9, 30, 41, 42, 43, 44
(See also Thrift institutions)
Savings deposits (See Time and savings deposits)
Securities (See specific types)
Federal and federally sponsored credit agencies, 35
Foreign transactions, 66
New issues, 36
Prices, 29
Special drawing rights, 4, 12, 54, 55
State and local governments
Deposits, 19, 20, 21
Holdings of U.S. government securities, 33
New security issues, 36
Ownership of securities issued by, 19, 20, 21, 30
Rates on securities, 3
Stock market, 29
Stocks (See also Securities)
New issues, 36
Prices, 29
TAX receipts, federal, 32
Thrift institutions, 3 (See also Credit unions,
Mutual savings banks, and Savings and loan
associations)
Time and savings deposits, 3, 9, 15, 18, 19-22
Trade, foreign, 55
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 12, 31
Treasury operating balance, 31
UNEMPLOYMENT, 47
U.S. government balances
Commercial bank holdings, 19, 20, 21
Treasury deposits at Reserve Banks, 4, 12, 31
U.S. government securities
Bank holdings, 18, 19-21, 33
Dealer transactions, positions, and financing, 34
Federal Reserve Bank holdings, 4, 12, 13, 33
Foreign and international holdings and transactions, 12,
33, 67
Open market transactions, 11
Outstanding, by type and ownership, 33
Ownership of securities issued by, 30
Rates, 3, 28
U.S. international transactions, 54-67
Utilities, production, 49
VETERANS Administration, 40, 41
WEEKLY reporting banks, 19-24
Wholesale (producer) prices, 46, 51
YIELDS (See Interest rates)
A78
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
LEGEND
Boundaries of Federal Reserve Districts
Federal Reserve Bank Cities
Boundaries of Federal Reserve Branch
Territories
•
Federal Reserve Branch Cities
•
Q
®
Federal Reserve Bank Facility
Board of Governors of the Federal Reserve
System
@FedFRASER