Full text of Federal Reserve Bulletin : November 1987
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
VOLUME 73 •
NUMBER 11 •
Vol
V*
\
NOVEMBER 1987
FEDERAL RESERVE
U
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Michael Bradfield • S. David Frost
• Griffith L. Garwood • Donald L. Kohn • Michael J. Prell • Edwin M. Truman
The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by Mendelle T.
Berenson, the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
839 DAYLIGHT
PAYMENTS
OVERDRAFTS
AND
SYSTEM
RISK
This article reviews the operation of largedollar payments systems and the public
policy concerns associated with daylight
overdrafts, summarizes the main components of the Federal Reserve's policy on
payments system risk, and describes the
initial experience with that policy.
853 STAFF
In "The Funding of Private Pension Plans,"
the author briefly reviews the regulatory,
institutional, and economic factors relevant
to pension plan obligations; surveys the
literature on the appropriate conceptual
framework for measuring pension obligations; and describes, on reported and
adjusted bases, the recent funded status
(measured by the ratio of assets to liabilities) of a large sample of private pension
plans.
PRODUCTION
Industrial production increased an estimated 0.3 percent in August.
857 STATEMENT
TO
CONGRESS
Wayne D. Angell, Member, Board of Governors, comments on proposals to establish, for farm mortgage loans, a secondary
market backed by a government guarantee,
before the House Committee on Banking,
Finance and Urban Affairs, September 30,
1987.
860
ANNOUNCEMENTS
Meeting of the Consumer Advisory Council.
Amendment to Regulation U.
Proposal to amend Regulation Z to implement a provision of the Competitive Equality Banking Act of 1987 regarding adjustable-rate mortgages; proposal to permit
bank holding companies to acquire healthy
thrift institutions.
Admission of five state banks to membership in the Federal Reserve System.
STUDIES
855 INDUSTRIAL
Changes in Board staff, including the creation of a new organizational unit, the Division of Monetary Affairs.
862 RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET
COMMITTEE
At the conclusion of its meeting on August
18, 1987, the Committee approved a directive that called for no change, at least
initially, in the degree of pressure on reserve positions. With regard to possible
adjustments during the intermeeting period,
the members indicated that somewhat
greater reserve restraint would be acceptable, while slightly lesser reserve restraint
might be acceptable, depending on developments relating to inflation, the strength of
the business expansion, the performance of
the dollar in foreign exchange markets,
while also taking account of the behavior of
the monetary aggregates. Unchanged conditions of reserve availability were expected to be consistent with growth in M2 and
M3 at annual rates of around 5 percent for
the three-month period from June to September; given its performance in July, expansion in M3 was expected to be somewhat less than had been anticipated at the
time of the July meeting. Because the behavior of Ml was still subject to unusual
uncertainty, the Committee decided to continue the practice of not specifying a numerical expectation for its short-run growth.
The members agreed that the intermeeting
range for the federal funds rate, which
provides a mechanism for initiating consultation of the Committee when its boundaries are persistently exceeded, should be
left unchanged at 4 to 8 percent.
869 LEGAL
AND BUSINESS
STATISTICS
A3 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics
A 7 6 BOARD
OF GOVERNORS
A 7 8 FEDERAL OPEN MARKET
AND STAFF; ADVISORY
DEVELOPMENTS
Various bank holding company, bank service corporation, and bank merger orders;
and pending cases.
A i FINANCIAL
A 6 9 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND
SPECIAL
TABLES
A 8 0 FEDERAL RESERVE
PUBLICATIONS
A 8 3 INDEX
A 8 6 MAP OF FEDERAL
STAFF
COMMITTEE
COUNCILS
BOARD
TO STATISTICAL
A 8 4 FEDERAL RESERVE
AND OFFICES
AND
TABLES
BANKS,
RESERVE
BRANCHES,
SYSTEM
Daylight Overdrafts
and Payments System Risk
Terrence M. Belton, formerly of the Board's
Division of Research and Statistics; Matthew D.
Gelfand, of the Board's Division of Research and
Statistics; David B. Humphrey, of the Federal
Reserve Bank of Richmond; and Jeffrey C. Marquardt, of the Board's Division of International
Finance, prepared this article. Nancy E. Bowen,
Oscar B. Barnhardt, and Elaine J. Peterson
provided technical and research
assistance.
Notes appear at the end of the article.
In March 1986, the Federal Reserve implemented
a policy designed to reduce the risk associated
with daylight overdrafts on large-dollar payments
systems. Since then, the growth in daylight overdraft volume has slowed, and the ability of
Federal Reserve Banks and depository institutions to monitor and control risk in the payments
system has improved. This article reviews the
operation of large-dollar payments systems and
the public policy concerns associated with daylight overdrafts, summarizes the main components of the Federal Reserve's policy on payments system risk, and describes the initial
experience with that policy. In addition, the
article briefly surveys methods for further reducing the risk associated with daylight overdrafts.
THE OPERATION OF
PA YMENTS S YS TEMS
LARGE-DOLLAR
Two systems for the electronic transfer of largedollar payments operate in the United States
today: the Fedwire funds transfer system and the
Clearing House Interbank Payments System
(CHIPS). In addition a "book-entry securities
system" for the electronic transfer of U.S. government, agency, and other securities operates
on Fedwire.
The Federal Reserve Banks operate the Fedwire funds transfer system. Participants in this
system send to and receive from each other
payment messages or "wire transfers" via computer and other communications links with their
Reserve Banks. However, only institutions with
reserve or clearing accounts have direct links to
Reserve Banks. A Fedwire funds payment is final
when the destination Reserve Bank notifies the
receiving depository institution of the transfer; at
this time funds are credited to the clearing or
reserve account of the receiving institution.
Meanwhile, the institution initiating the payment
is responsible for covering the amount of this
payment when it sends the wire transfer to its
Reserve Bank. Daylight overdrafts will occur
whenever the funds in the reserve or clearing
account of the sending institution are insufficient
to cover a payment at the time of the transfer.
CHIPS is owned and operated by the New
York Clearing House, a private-sector institution. On this system, participants send and receive electronic payment messages during the
day through a central computer. Unlike the case
of Fedwire, however, no funds are transferred
nor are funds accounts debited or credited at the
time CHIPS payment messages are exchanged.
Instead, net obligations are settled at the end of
the day using a special account at the New York
Reserve Bank under procedures established by
the New York Clearing House and the Federal
Reserve. The procedures are complex; in essence, participants that have sent and received
payment messages resulting in net debit positions
at the end of the day transfer funds for these net
amounts to institutions in net credit positions.
In CHIPS, potential credit exposures vis-a-vis
all other CHIPS participants occur whenever a
participant initiates payments whose total value
exceeds the value of payments received up to that
time. In this end-of-day settlement system, all
840
Federal Reserve Bulletin • November 1987
participants begin daily operations with zero credit
and debit positions. Payment messages are sent
and received throughout the day; however, because messages sent and received by individual
participants typically are unequal in value, intraday
net debit and credit positions are necessarily a part
of normal operations. Although net debit positions
on CHIPS are often called daylight overdrafts,
technically no overdrafting of any funds account
occurs.
Practices
Leading
to Daylight
Overdrafts
On a typical day, about 1,100 depository institutions in the United States incur daylight overdrafts totaling more than $80 billion on the two
large-value funds transfer systems. These overdrafts last anywhere from several minutes to
nearly all day. On an average day, another $60
billion of overdrafts result from transfers over
the Federal Reserve's book-entry securities
transfer system.
Daylight overdrafts exist, in part, because of
market conventions for particular types of financial transactions. For example, in the markets for
federal funds, Eurodollars, commercial paper,
and large certificates of deposit, borrowers commonly repay funds in the morning but do not
receive newly borrowed funds until later the
same day. Repayments frequently occur even if a
borrower renews, or "rolls over," a maturing
money market obligation with the same lender
for an identical amount. Because the sum of such
repayments can exceed an institution's reserve
account balance, this institutional practice often
creates a daylight overdraft that might last for
three hours or more. A similar pattern—payments made in anticipation of funds to be received later the same day—is associated with
certain types of third party payments. This pattern has evolved, in part, because depository
institutions in the United States are not required,
and many institutions have little incentive, to
maintain positive reserve account balances during the day.
Another convention leading to daylight overdrafts exists in the government securities market.
A buyer of government securities receives the
accrued interest as of the originally scheduled
settlement date. However, the buyer is not required to take delivery and make payment until
the full amount of the securities involved in a
transaction is actually delivered. When a seller
fails to make timely and proper delivery of all
securities in a transaction, the seller or its clearing bank typically incurs the cost of financing the
securities overnight but must pass on all of the
accrued interest to the buyer. Hence, a failed
delivery causes the seller to lose interest for one
day. Because this interest cost increases with the
size of the transaction, sellers have an incentive
to build intraday securities positions so they will
be able to complete delivery of their largest
orders first. In building such positions, clearing
banks make payments for securities they receive
on behalf of themselves and dealer customers.
These payments result in substantial amounts of
daylight overdrafts on the reserve accounts of
the clearing banks; the overdrafts remain until
securities held in position are delivered against
payment in the late morning or afternoon.
Payments
Systems
in Other
Countries
The experience in other industrial countries has
been somewhat different from that of the United
States. Within the past five years, the United
Kingdom, France, Germany, Switzerland, the
Netherlands, and Sweden have installed electronic systems for the interbank transfer of payments in their respective currencies. Japan is
actively planning a wire transfer system. Moreover, a group of commercial banks from countries in the European Community have implemented a fully automated system for the
interbank transfer of private ECU (European
Currency Unit) payments, for which the Bank for
International Settlements provides settlement.
All but the sterling and ECU systems are similar
to Fedwire in that payments are made through
reserve or clearing accounts at the country's
central bank during the business day. Almost all
central banks involved in operating these systems prohibit uncollateralized daylight overdrafts. However, most central banks do make
collateralized lines of credit available to system
participants, often in connection with overnight
and short-term financing that is provided at rates
and on conditions set by the central bank. This
Daylight Overdrafts and Payments System Risk
credit can be drawn upon during the day to avoid
daylight overdrafts.
Like CHIPS, the sterling and ECU electronic
transfer systems operate on the principle of endof-day net settlement. These systems cannot
produce daylight overdrafts in reserve or clearing
accounts because no intraday debiting or crediting of such accounts is used to complete payments. However, intraday net debit and credit
"positions" indicating final settlement obligations are generated by participants as they make
and receive payments. Therefore, as with
CHIPS, daylight exposures are created as part of
normal operations.
POLICY
CONCERNS
The Federal Reserve's concern with daylight
overdrafts stems from its roles as a provider of
payment services, as a banking supervisor, and
as a lender of last resort.
Payments made on Fedwire are final in the
sense that a Federal Reserve Bank irrevocably
credits the account of an institution receiving a
payment once the Reserve Bank has notified the
receiver of the sender's payment message. As a
result, if the sending institution with a daylight
overdraft were unable to cover the overdraft by
the end of the day, the Federal Reserve Bank
would absorb any resulting loss. Fedwire finality
has the benefit of insulating the banking system
as a whole from the potential consequences of
the settlement failure of the sending institution. It
has the disadvantage, however, of removing the
incentive for receiving banks to monitor the
creditworthiness of sending banks that incur daylight overdrafts. This lack of incentive for private
institutions likely contributes to the magnitude of
their daylight overdrafts on Fedwire.
The Federal Reserve also has been concerned
about "systemic risk" on private wire transfer
systems, the possibility that one institution's
inability to settle could cause other institutions to
fail to settle. If an institution with a net debit
position on CHIPS were unable to settle at the
end of the day, CHIPS rules currently allow for
deleting from the end-of-day settlement all payment messages involving that institution during
the day. However, deletion of payment messages
841
has the potential to create large unanticipated
changes in the net settlement positions of other
participants, who in turn might be unable to
cover their (recalculated) settlement obligations.
The potential magnitude of systemic risk on
private wire transfer networks is illustrated in a
simulation study of an unexpected settlement failure on CHIPS. 1 Based on transaction data for a
randomly selected day in January 1983, the analysis demonstrates that the unexpected settlement
failure of one large CHIPS participant on that day
could have resulted in an increase in the net debit
positions of each of 49 other CHIPS participants
by an amount greater than each of their total
capital. These institutions represented almost
one-half of all CHIPS participants, and their payments constituted one-third of the dollar value of
all CHIPS payments sent that day. Similar results
were obtained when the simulation used data for
other days and different institutions to investigate
the effects of hypothetical settlement failures.
The direct financial risk incurred by the Federal Reserve on Fedwire and the systemic risk on
private wire networks have been two major public policy concerns associated with daylight overdrafts. A related concern of the Federal Reserve
has been to ensure the effective functioning of
the payments system. After several years of
study by the Federal Reserve and banking industry groups, the Federal Reserve Board adopted a
policy in May 1985 aimed at addressing these
concerns. All features of that policy were put
into effect by March 1986. The Federal Deposit
Insurance Corporation, the Office of the Comptroller of the Currency, the Federal Home Loan
Bank Board, and the National Credit Union
Administration have all supported the Federal
Reserve's payments risk policy and, along with
state banking supervisors, cooperate with the
Federal Reserve in administering it.
THE FEDERAL RESERVE
ON PA YMENTS S YSTEM
S POLICY
RISK
The Federal Reserve's current policy to limit risk
in the payments system has three major
components. 2
(1) All private, large-dollar transfer networks
obtaining Federal Reserve net settlement ser-
842
Federal Reserve Bulletin • November 1987
vices must require each participant to establish a
limit on its net daylight exposure to each other
participant ("bilateral net credit limits"). These
networks also must adopt limits on the intraday
net debit positions of each participant vis-a-vis
all other participants as a group ("network
sender net debit caps").
(2) Each depository institution participating in
a private large-dollar transfer network or incurring daylight overdrafts on Fedwire must establish a limit on its combined overdrafts on all large
dollar networks ("cross-system sender net debit
caps").
(3) Daylight overdrafts resulting from transfers
of U.S. government and agency securities
through the Federal Reserve book-entry system
are exempt from sender net debit caps. However, effective January 14, 1988, the Federal
Reserve has established a $50 million limit for
each transfer of securities processed on its bookentry system.
The Federal Reserve monitors on an ex post
basis the level of overdrafts of all participants in
all wire systems subject to its policy and counsels
those institutions whose overdrafts exceed their
cross-system limits. However, the Federal Reserve imposes real-time controls on reserve account overdrafts of troubled institutions. Reserve Banks may ask such institutions to post
collateral for daylight overdrafts and may delay
Fedwire payments that would lead to overdrafts
in excess of collateral values.
Private
Networks
The bilateral net credit limits required of each
participant on a private network establish a ceiling on the net value of payments that a given
participant is willing to receive from each other
participant on the network at any time of the day.
CHIPS, which is currently the only private,
large-dollar wire transfer network that receives
net settlement from the Federal Reserve, established such bilateral credit limits in October 1984.
Participants can set their limits for any dollar
amount and may change these limits at any time
during the business day. If a participant attempts
to make a payment that would cause it to exceed
a receiver's net bilateral credit limit, the CHIPS
operating system automatically rejects the payment.
In setting individual bilateral credit limits,
CHIPS participants currently have some incentive to monitor the creditworthiness of other
participants because of costs they might incur in
a settlement failure. These costs presumably
would be related to their bilateral exposures to
the participant that failed to meet its settlement
obligations. However, the presence of systemic
risk—the chance that one participant's settlement failure could trigger such failures by other
participants—implies that bilateral caps may not
fully reflect all the costs of a settlement failure.
In accordance with the Board's policy, CHIPS
also implemented network sender net debit caps
in October 1985. Although the Board's policy
does not stipulate a specific method for setting
these caps, their purpose is to limit the aggregate
amount of daylight overdrafts that any one participant can incur on an individual private network. On CHIPS, the cap is defined for each
participant as 5 percent of the sum of all bilateral
credit limits set for that participant by all other
CHIPS participants. For purposes of this sum
only, the individual bilateral credit limits are
confined to a maximum of $1 billion each. The 5
percent figure was established using historical
data on the average amount by which all participants in CHIPS used their bilateral credit limits
during a test period in 1985. The sum of all
bilateral credit limits measures the extent to
which, in the aggregate, other institutions in the
network are willing to extend daylight credit to
the participant whose cap is being established.
However, because they are based on individually
determined bilateral credit limits, the network
sender net debit caps themselves may not completely reflect the costs due to systemic risk.
As with payments that exceed bilateral net
credit limits, the CHIPS system will reject any
payment that would cause a participant to breach
its network sender net debit cap. For each participant, this cap on any day is based on the total
of bilateral limits existing for that participant at
the end of the preceding day. Thus, unlike bilateral limits, this cap cannot be changed during a
given day; but a participant's sender net debit
cap can change from one day to another if, on
balance, other participants changed the total of
Daylight Overdrafts and Payments System Risk
the bilateral credit limits they set for the participant in question.
Cross-System
Caps
In addition to private network caps, the Federal
Reserve's policy calls for each depository institution to adopt a cross-system sender net debit
cap to limit the net volume of daylight funds
overdrafts it may incur across all wire transfer
systems combined, including Fedwire. The selection of a cap level is based on Federal Reserve
guidelines and involves an institution's self-assessment of its creditworthiness, credit policies,
and operational controls and procedures. Five
different ratings are possible under the Federal
Reserve's self-assessment procedure. A pair of
cap levels expressed as multiples of the institution's adjusted primary capital corresponds to
each rating: 3 a daily cap and a cap on average
daily overdrafts over any two-week reserve
maintenance period. For example, if an institution rated itself as average under the Federal
Reserve's guidelines, the cross-system sender
net debit cap currently would require that daylight overdrafts not exceed 1.5 times that institution's adjusted primary capital on any single day
and that the average daily overdraft not exceed
1.0 times its capital on average over any twoweek reserve maintenance period (table 1).
The Federal Reserve set initial cross-system
sender net debit caps with the intention of minimizing possible disruptions to the payments sys-
843
tem and providing depository institutions an opportunity to gain experience with the daylight
overdraft program. In July 1987, the Federal
Reserve adopted a 25 percent reduction in cap
levels, to be phased in with a 15 percent reduction on January 14, 1988, and the balance of the
reduction on May 19, 1988 (table 1).
About 3,000 depository institutions have conducted a self-assessment and established positive
cap levels (table 2). An additional 3,000 institutions have zero caps either as a result of selfassessments or because their supervisors or Reserve Banks assigned such caps. About 700
institutions have no cap on file, yet incurred
overdrafts in the period considered. In all, 370
institutions, or approximately 6 percent, have
rated themselves in the highest cap category
under the Federal Reserve's guidelines. However, large institutions exhibit a greater tendency
to place themselves in the highest category, and
they account for a significant share of daylight
overdraft volume. Thus, the highest cap institutions account for nearly 55 percent of the aggregate volume of daylight overdrafts due to funds
transfers, called "funds overdrafts."
Of those institutions with daylight overdrafts,
a relatively large number are small depository
institutions that incur minor amounts of overdrafts on an infrequent basis. These institutions
present little credit risk to Reserve Banks and are
unlikely to create systemic risk. To reduce costs
both to the Federal Reserve and to these institutions, the Federal Reserve decided in the sum-
1. Cross-system sender net debit cap
Multiple of adjusted primary capital
Current policy
Self-assessment category
High
Above average
Average
Limited1
No cap2
Policy effective January 14, 1988
Policy effective May 19, 1988
Two-week
average
Single day
Two-week
average
Single day
Two-week
average
Single day
2.0
1.5
1.0
.5
.0
3.0
2.5
1.5
.5
.0
1.70
1.275
.85
.425
.0
2.55
2.125
1.275
.425
.0
1.50
1.125
.75
.375
.0
2.25
1.875
1.125
.375
.0
.2
.2
•2
.2
MEMO:
De minimis3
1. Institutions with negative adjusted primary capital. Caps shown
for these institutions are expressed as multiples of unadjusted primary
capital. Effective January 1, 1989, the special cap category for these
institutions will be dropped.
2. Institutions with zero cap or no cap on file.
.2
.2
3. The cap shown cannot exceed $500,000, regardless of an institution's level of adjusted primary capital. Incorporated into the
Federal Reserve's policy in the summer of 1987 and available for use
at all Reserve Banks no later than December 4, 1987.
844
Federal Reserve Bulletin • November 1987
2. Frequency distribution of self-assessment categories 1
Self-assessment
category
High
Above average
Average
Limited
Zero cap
No cap on file
Total
All institutions
Institutions with assets in excess of $1 billion
Number
Percent
Number
Percent
370
1,126
1,513
19
3,001
702
6,731
5,5
16.7
22.5
.3
44.6
10.4
100
122
209
155
8
107
14
615
19.8
34.0
25.2
1.3
17.4
2.3
100
MEMO: Percent of
overdraft volume
54.5
29.4
15.8
.0
.1
.1
100
1. Institutions with cap on file and those institutions with no cap on file but which incur overdrafts, as of July 1, 1987.
mer of 1987 to allow institutions that meet reasonable performance standards to incur "de
minimis" amounts of daylight overdrafts. The de
minimis cap allows depository institutions to
incur occasional daylight overdrafts on Fedwire
up to the lesser of 20 percent of adjusted primary
capital or $500,000 without conducting a selfassessment.
Book-Entry
Securities
Transfers
The Federal Reserve is especially concerned that
its payments risk policy avoid disrupting the
market for U.S. government securities, which
include issues of the U.S. Treasury and of federal
and federally sponsored agencies and certain
other securities. Its policy therefore currently
imposes no quantitative restrictions on those
overdrafts resulting from book-entry transfers of
such securities. The Federal Reserve hopes to
avoid disrupting the government securities market for two major reasons.
First, the Federal Reserve Bank of New York
implements monetary policy through transactions with primary dealers in government securities. Restrictions on book-entry overdrafts could
limit the amount of trading that primary dealers
would be able to conduct at a given moment and
thus could hinder the timely execution of open
market operations.
Second, in operating the securities portion of
the transfer system, the Federal Reserve Banks
act on behalf of the U.S. Treasury. In this
capacity, the Federal Reserve seeks to minimize
the Treasury's borrowing costs by keeping transactions costs for market trading of book-entry
securities as low as possible, subject to meeting
objectives for monetary policy and the soundness of the financial system.
It has been difficult to develop methods for
reducing risk from book-entry overdrafts that
would avoid disrupting the execution of monetary policy while maintaining low trading costs
for market participants. The Federal Reserve
therefore decided in July 1987 to continue the
exemption of book-entry related overdrafts from
direct quantitative limits and to examine alternatives for reducing risk due to these overdrafts. At
that time, however, the Federal Reserve also
amended its original policy on payments system
risk to address more immediately the risks in
book-entry operations. Effective January 14,
1988, all Reserve Banks will impose a $50 million
par-value limit on the size of individual transfers
of book-entry government securities other than
those resulting from allocations of new issues to
dealers or from redemptions of maturing issues.
This limit should reduce incentives for position
building and could induce dealers to deliver
securities earlier in the day and to operate with
lower levels of book-entry overdrafts.
Under the amended policy, the Federal Reserve Bank of New York will monitor primary
dealers, while all Reserve Banks are to monitor
depository institutions in their own districts that
are major users of the book-entry system. The
purpose of this monitoring is to ensure that
participants establish policies and follow procedures for controlling risk associated with bookentry overdrafts. If a Reserve Bank finds such
actions to be inadequate in controlling risk, the
Reserve Bank may take steps such as requiring
collateral or monitoring overdrafts in real time to
limit its own risk exposure. By the first quarter of
Daylight Overdrafts and Payments System Risk
1989, all Reserve Banks are to implement realtime monitoring of book-entry overdrafts—in
which overdrafts are measured as they are created—to replace the current system in which
overdrafts are measured at a later time. Realtime monitoring will increase the flexibility of the
Federal Reserve Banks in dealing with the small
number of institutions whose levels of bookentry overdrafts warrant attention.
EXPERIENCE
WITH THE
ON PA YMENTS
RISK
POLICY
In response to the introduction of bilateral net
credit limits and sender net debit caps, depository institutions have instituted a variety of measures to control their own overdrafts. These
measures have noticeably slowed the growth of
aggregate overdraft levels, apparently without
limiting the growth of underlying payments.
Aggregate
Overdrafts
and Payments
Activity
The Federal Reserve measures the daily aggregate overdraft level on each wire transfer system
by summing the maximum overdraft position for
each depository institution on that day, regardless of the time of day that the maximum position
occurs or its duration. The biweekly average
overdraft for each institution is the average of
daily maximum overdrafts for the institution for
all business days in the two-week period, again
regardless of the time of day each maximum
occurs or its duration. Aggregate biweekly overdrafts, which are the sum of these individual
biweekly averages, provide summary measures
of maximum overdraft levels of individual institutions, which are a principal focus of the Federal Reserve's policy.
The Federal Reserve System has collected
data on overdrafts by individual institutions on
all large-dollar payment systems since December
1984. Overdrafts due to Fedwire funds transfers—and other debits to reserve and clearing
accounts for check, automated clearinghouse
(ACH), and other settlements—have been subject to cross-system sender net debit caps since
March 1986. During the period March 1986 to
845
June 1987, these overdrafts in the aggregate
averaged $50 billion per day and were on a
moderate upward trend (chart 1). In this period,
CHIPS overdrafts initially fell considerably below their levels preceding the introduction of
cross-system caps but have been on a slight
upward trend since that time. Meanwhile, bookentry overdrafts, which remain exempt from
quantitative limits, have increased steadily from
a low of about $35 billion per day in early 1985 to
a peak of $67 billion in February 1987.
Cross-system funds overdrafts for an individual depository institution are the combined funds
overdrafts on Fedwire and private wire systems
for the institution at a given time of day. For the
purposes of this measure, a net credit on one
system at a particular time is treated as a credit
against any overdraft that occurs at the same
time on another system. Therefore, an institution's maximum cross-system overdraft generally will be smaller than the sum of its separate
maximum Fedwire and CHIPS overdrafts, which
may occur at different times. Similarly, the aggregate cross-system funds overdraft, which is
the sum of individual maximums, generally is
smaller than the sum of separate Fedwire and
CHIPS aggregate net debits. Aggregate maximum cross-system funds overdrafts averaged
about $79 billion per day during the period March
1986 to June 1987, compared with an average of
$77 billion per day during the five quarters preceding implementation of the policy (chart 2).
The sum of cross-system funds overdrafts and
book-entry overdrafts for individual institutions
is calculated in a manner similar to that of
cross-system funds overdrafts alone. In the aggregate, this sum averaged $125 billion per day in
the last year. The level has increased considerably over time, reflecting the increases in book1. Overdrafts, by transfer system
Billions of dollars, biweekly average
846
Federal Reserve Bulletin • November 1987
2. Cross-system overdrafts
Billions of dollars, biweekly average
1986
1985
1987
entry overdrafts, which have not been constrained by the Federal Reserve's policy.
The aggregate value of wire transfer payments
has also grown considerably. The value of funds
transactions on Fedwire averaged $460 billion
per day in 1985 and 1986 and reached a peak of
$602 billion per day in the second quarter of 1987
(chart 3). The dollar value of transfers on CHIPS,
historically smaller than those on Fedwire, has
grown relatively fast, and the volumes of activity
on the two systems are now comparable. Payments resulting from book-entry securities transfers also grew during this period to about $300
billion per day in 1987. However, they remain
significantly smaller in aggregate value than
funds transfers. Smaller still is the value of
transactions using checks and other minor components of the payments system; although comprehensive data are unavailable, various estimates suggest that the value of these transactions
totaled about $200 billion on an average business
day in 1986 (not shown).
Comparing overdrafts to the value of the underlying transfers places these trends in a more
meaningful context (chart 4). Since caps on
CHIPS and Fedwire funds overdrafts have been
in effect, overdrafts as a share of the value of
payments transferred have declined. For Fedwire, the reduction in this ratio was from 11
percent on average before daylight overdraft
limits went into effect, to 9 percent on average
during the following year, a reduction of nearly
one-fifth. For CHIPS, the reduction between
these same periods was from 17 percent to 8
percent, a fall of more than half. Book-entry
overdrafts have been exempt from quantitative
limits. Nevertheless, overdrafts as a share of
book-entry securities transfers have fallen somewhat, from nearly 23 percent in the second
quarter of 1986 to about 19 percent a year later,
a reduction of about one-sixth.
Data on the intraday time of payment originations provides additional information on the effect of the payments risk policy (chart 5). One
concern is that institutions might slow their outgoing payments in order to remain within caps,
possibly causing other receiving institutions to
experience higher overdraft levels. The dollar
share of a day's total transactions originated by a
certain hour of the day has fluctuated at times.
However, since the implementation of caps, neither Fedwire nor CHIPS has experienced an
overall shift of traffic to a later time.
Overdrafts
Institutions
by Individual
Depository
Small institutions as a group incur a minor portion of total overdrafts (chart 6). Larger U.S.
commercial banks (defined here as those with
3. Average daily payments volume 1
Billions of dollars
1985
1986
1. Book-entry data are not available for 1985 and exclude original issues and redemptions.
1987
Daylight Overdrafts and Payments System Risk
847
4 . O v e r d r a f t s as s h a r e o f p a y m e n t s 1
Percent, daily average
1985
1987
1986
1. Book-entry data are not available for 1985 and exclude original issues and redemptions.
more than $10 billion in assets) and U.S. offices
of foreign banks, although relatively few in number, generally account for about 80 percent of all
cross-system funds overdrafts. Book-entry overdrafts are more highly concentrated; indeed the
four major clearing banks, which clear securities
for dealers and others, account for more than 75
percent of all book-entry overdrafts (chart 7).
A comparison of daylight funds overdrafts
with cross-system caps illustrates the possible
constraining influence of policy guidelines. Aggregate funds overdrafts have equaled only 16
percent of cross-system overdraft caps even during the two-week period when funds overdrafts
were at their greatest since measurement of
overdrafts began (table 3). Among larger U.S.
commercial banks, this "cap usage rate," or the
portion of caps actually used, averaged less than
40 percent. Of course, as caps are reduced in two
steps during the first half of 1988 by a total of
one-fourth of their current levels, cap usage rates
likely will rise. Nevertheless, the aggregate cap
usage rate may be expected to remain moderate.
If overdrafts remain unchanged, the aggregate
cap usage rate would rise from about 16 percent
to 22 percent and, for larger U.S. banks, from 40
to 50 percent when the full reductions of caps are
implemented.
However, some institutions that use their
overdraft caps more intensively will have to
reduce their overdrafts as caps are lowered in
1988. In a limited number of cases, these reductions could be substantial. Possible methods for
accomplishing this task are discussed below.
But, as data on the distribution of individual cap
usage rates show (table 4), a majority of institutions use less than 50 percent of their current
caps, while on average about 70 percent of all
overdrafts are incurred by institutions with cap
usage ratios at or below this level. This pattern
suggests that a significant number of major institutions will continue to have low individual usage
rates after the 1988 cap reductions.
The duration of daylight overdrafts, or the
average number of hours during the day that
institutions remain in overdraft, is another di-
5. D o l l a r share o f o r i g i n a t i o n s , b y t i m e o f d a y f o r
selected w e e k s 1
Fedwire
| Open-noon
Percent
| | Noon-3 p.m J f | 3 - 4 p.m
1. Data available for weeks ended Oct. 11, 1985; Jan. 10, Mar. 14,
Apr. 18, May 16, June 20, Sept. 19, and Dec. 19, 1986; and Feb. 27,
Mar. 20, and June 19, 1987.
848
Federal Reserve Bulletin • November 1987
6. Funds overdrafts, by type of institution
3. Aggregate funds overdraft capacity and
usage rates
Billions of dollars, biweekly average
Type of institution
Domestic, by asset
size (billions of
dollars)
Less than 1
1-5
5-10
More than 10
All
1. Banks with more than $10 billion in assets.
2. U.S. agencies and branches of foreign banks.
3. Domestic banks with less than $10 billion in assets, all thrift
institutions, and other types of institutions.
mension of risk in the payment system. The level
of risk an institution creates because of overdrafts is related to the size of the overdraft and to
the length of time the institution incurs a given
level of overdraft. Thus, the amount of risk
created might change little if institutions reduced
their peak overdrafts but remained near those
peaks for longer periods of time as they redistributed their payment flows. In addition, fluctuations in overdraft duration over time could serve
as an indicator of possible disruptive effects of
daylight credit restrictions on the orderly flow of
payments.
Chart 8 shows the duration of funds overdrafts
has varied by less than an hour out of an average
of 6 hours per day, even with the introduction of
caps in early 1986. The "peak duration," defined
here as the period during which individual overdrafts remain above 90 percent of their peak
Percent of Percent of
crosstotal
system
funds
capacity overdrafts
5.3
7.0
5.9
20.8
61.0
100
2.0
6.5
8.8
49.6
33.0
100
Number
of
institutions
cap usage
rate
(percent)2
1,432
186
48
36
88
1,790
6.2
15.1
24.3
38.5
8.7
16.2
1. For the two weeks ending May 20, 1987, total funds overdraft
capacity was $552 billion and actual funds overdrafts were $88 billion.
The table excludes institutions with negative adjusted primary capital
or zero or no caps on file. Such institutions accounted for about 0.3
percent of cross-system overdrafts.
2. Total cross-system funds overdrafts for size class as percent of
total cross-system caps for size class.
3. U.S. agencies and branches of foreign banks. The cross-system
overdraft capacity of these institutions is based on worldwide capital.
However, their uncollateralized Fedwire capacity is based on the
smaller measure of 5 percent of their U.S. third party liabilities ($28
billion). In addition, 17 foreign institutions have established a
small amount of collateralized lines of credit for using Fedwire ($3
billion). In general, CHIPS caps are much smaller than cross-system
caps.
amounts, has also remained steady. This stability
is also exhibited by larger U.S. commercial
banks with more than $10 billion in assets and by
foreign banks, the two groups responsible for
most funds overdrafts.
Responses
to the Payments
Risk
Policy
The Federal Reserve's payments system risk
policy provides depository institutions with
4. Distribution of biweekly cross-system funds
overdrafts by cap usage rates 1
Cap usage rate2
7. Book-entry overdrafts by largest clearers
Number of
institutions
Distribution of
cross-system funds
overdrafts
(percent)
4
5
8
5
9
15
1,741
1,316
3,103
.4
2.6
4.2
7.5
8.5
7.1
69.4
.3
100
Billions of dollars, biweekly average
-*-Effective date of policy
75
Total
50
Four largest clearers
25
i
1985
Others
1986
i
1987
Greater than 100
90-100
80-90
70-80
60-70
50-60
Less than 50
All
1. Average for second quarter 1987. Cross-system funds overdrafts
averaged $85.5 billion per business day over this period.
2. Cross-system funds overdrafts of an individual institution as a
percent of its cap.
3. Institutions with negative adjusted primary capital or zero cap or
no cap on file.
Daylight Overdrafts and Payments System Risk
guidelines for conducting self-assessment ratings
and establishing cross-system overdraft caps. To
obtain the better ratings, institutions should have
well-structured credit management policies, have
up-to-date operational procedures, and be in
sound financial condition. To obtain such ratings,
most depository institutions with large overdrafts
have implemented new internal credit policies for
extending daylight overdraft facilities to customers and other banks and have improved their
operating procedures to track customer and interbank daylight exposures.
The largest institutions typically have installed
automated monitoring and control systems. Such
systems can track an institution's own interbank
overdraft position in real time during the day and
can automatically slow the processing of outgoing
payments when overdrafts approach a specified
limit, usually some portion of its cap. Normal
payments operations can be resumed when overdrafts decline as a result of incoming payments or
at the discretion of the operations manager or a
more senior credit officer. More sophisticated
systems can also perform similar tasks in real time
on individual customer accounts.
5. Duration of cross-system funds overdrafts 1
Hours per day, biweekly average
All institutions
Duration
Effective date of policy- —
Peak duration
-
«
i
Major banks 2
U.S. duration
Foreign duration
Effective date of policy
U.S. peak duration
/
Foreign peak duration
t
1985
!
1986
1987
1. Duration is number of hours per day in overdraft. Peak duration
is hours per day within 90 percent of peak overdraft.
2. Major U.S. banks are those with more than $10 billion in assets.
Major foreign banks are U.S. agencies and branches of foreign banks.
849
In addition to changing their internal policies
and procedures, some depository institutions
have altered the payment services they provide
and their prices. In rare cases, institutions have
announced a special fee for customers' priority
payments, which must be transferred by a certain
time of the day. Meanwhile, an institution may
release nonpriority payments any time during the
day at its own discretion, typically at times when
overdrafts are relatively low.
In isolated cases, institutions with excess intraday funds—or with no excess funds but with
excess overdraft capacity—have offered intraday
credit to other depository institutions that might
be approaching their overdraft caps. However,
no borrowers have been known to accept this
type of intraday credit. Although intraday lending might not reduce the aggregate level of overdrafts at a given time of day, it would redistribute
overdrafts toward institutions that have a greater
capacity for managing such exposures. This
greater capacity exists for some institutions either because their payments activities lead to
small amounts of overdrafts relative to their
capital or because these institutions were able
to establish self-assessment ratings that are
higher than for other, similarly positioned institutions.
A redistribution of overdrafts toward institutions with greater capacity could occur by means
other than explicit intraday lending. A small
number of commercial banks have explored the
feasibility of pricing customers' overdrafts on
their own books. If pricing of customer daylight
overdrafts were instituted, then customers would
have some incentive to use those service providers that supplied intraday credit at the lowest
prices, other things equal. Institutions with the
lowest prices likely would be those with the most
excess overdraft capacity. A redistribution of
payments volume toward these institutions could
result.
Even in the absence of explicit pricing, customers may have an incentive to shift some
business away from their primary banking institution to other institutions in the event that the
primary provider was constrained and unable to
guarantee processing of a time-critical payment.
Some institutions have marketed payments services as "backup" providers.
850
Federal Reserve Bulletin • November 1987
OTHER METHODS FOR
REDUCING
PAYMENTS SYSTEM
RISK
The Federal Reserve is currently reviewing its
risk reduction program in order to evaluate
longer-term policy goals and strategies. The review will include a consideration of several policy options, including further reducing caps, requiring clearing balances or collateral to cover
daylight overdrafts, and pricing overdrafts; and
of institutional changes such as the adoption of
settlement finality on private networks and the
use of new funding and netting techniques. The
review will draw on an analysis by staff members
of the Federal Reserve System as well as that of
the Board's Large Dollar Payments System Advisory Group, a committee of senior executives
of foreign and domestic commercial banks and
thrift institutions.
Settlement
Finality
on Private
Networks
Reserve Banks provide net settlement services to
depository institutions participating in a number
of private-sector clearing arrangements. These
arrangements include wire transfer networks;
check clearing; automated
clearinghouses
(ACH); and automated teller machine (ATM),
credit card, and point-of-sale (POS) networks.
Wire transfers are estimated to account for up to
85 percent of the value of all payments other than
those involving currency or those associated
with securities transfers, and check payments
account for almost all of the balance. The value
of ACH, ATM, POS, and credit card payments
together account for perhaps 2 percent of the
total value. Because systemic risk is closely
related to the value of overdrafts on a network,
which in turn appears to be related to the dollar
volume of payments on the network, wire transfer payments currently entail the most significant
amount of risk.
The Federal Reserve's risk reduction program
now calls for limits on the daylight overdrafts of
each participant in a private wire system that
uses a Reserve Bank to effect net settlements. As
long as daylight overdrafts exist, some level of
systemic risk remains because some participants
could fail to meet their settlement obligations and
cause others to fail to settle. The risk of settle-
ment failure on privately operated wire transfer
networks could be reduced further if procedures
were developed to assure the finality of settlements. Finality would protect participants on
private payments networks, and perhaps their
customers, from the disruptive effects of a reversal of payments in the event that one or more
participants failed to settle.
To achieve settlement finality, some or all
participants would need to stand ready to provide the funds necessary to assure settlement in
the event of one participant's settlement failure.
In one such arrangement, all network participants, as a group, would be prepared to provide
extra funds to cover the total net debit position of
a participant that failed to settle. A formula for
calculating such contributions could involve
equal shares, proportionate shares based on the
value of the net credit exposures each institution
had with the failed party, or shares devised in
some other manner. In addition, these contributions by participants could be reduced, for example, if each participant had previously posted
collateral in proportion to the size of the net
debits it typically incurred on the system. A
failing institution's collateral then could be used
to reimburse other participants that provided the
funds necessary to assure settlement finality. The
New York Clearing House, which operates
CHIPS, has decided to adopt some form of
settlement finality as soon as certain operational
and legal issues can be resolved.
The adoption of settlement finality need not
imply that customers could obtain irrevocable
credits to their deposit accounts for payments
received before end-of-day settlements. Indeed,
in the event of a settlement failure, settlement
finality could be obtained by requiring customers
receiving payments from a failed sending institution and obtaining provisional credits to their
accounts during a given day to reimburse their
depository institutions for losses related to these
payments. The uncertainties with respect to the
consequences of a settlement failure thus have
led to proposals that private networks adopt
receiver finality, which would give customers
irrevocable credit for payments received.
In one version of receiver finality, only payments credited to customer accounts and made
available for their use before end-of-day settle-
Daylight Overdrafts and Payments System Risk
ment would be treated as irrevocable credits. In
another version, all payments to customers of
network participants would become irrevocable
credits when received by the participant, regardless of when participants irrevocably credit customer accounts. Such proposals may be more
risky for network participants but safer for customers than settlement finality. A major rationale
in support of receiver finality, however, is that
reallocating more of the total risk to network
participants gives them a greater incentive to
monitor and control this risk and thereby lower
systemic risk.
Netting
and Other Institutional
Changes
As already noted, overnight federal funds purchases (and purchases of other money market
instruments) often are negotiated in the morning,
with the funds actually being sent in the early
afternoon. This practice leaves a midday gap of
three or more hours between the morning repayment of previously borrowed funds and the receipt of that same day's new borrowing, often
from the same lender and for the same amount. It
is during this gap that borrowers often incur
daylight overdrafts. Arrangements for the intraday netting of payments and receipts could be
used to reduce payment time gaps and daylight
overdrafts.
Depository institutions could use numerous
funding techniques to reduce daylight overdrafts.
First, they could borrow term or multiday funds
instead of overnight funds. Since repayments of
the borrowed term funds occur at the end of the
term periods, which are longer than one day, no
funds transfers are necessary in the intervening
days. Therefore, measured daylight overdrafts
would fall. Second, institutions could cover daylight overdrafts through intraday funding, for
example by borrowing overnight funds for delivery in the morning and reselling these funds in
the afternoon of the same day. However, depository institutions may prefer generally less expensive alternatives to term funds and intraday
funding. Examples of these techniques are rollovers and continuing contracts.
In a rollover, the same amount of overnight (or
longer-term) funds borrowing is renegotiated each
day with the same seller. As in the case of term
851
funds, no funds are transferred except the initial
borrowing, the final repayment, and the accrued
interest, which might be paid each day. Thus,
rollovers also can eliminate a number of daily
funds transfers and the associated daylight overdrafts. A similar technique is a continuing contract, in which differing amounts of daily funds
borrowings are renegotiated with the same seller
from day to day. Only net borrowings or repayments, and perhaps interest, are transferred each
day. Because net changes in borrowings are less
than the gross amounts borrowed, the size of
overdrafts should fall compared to their size when
gross amounts are returned and reborrowed each
day.
Another technique is netting by novation, in
which gross bilateral payment obligations between two institutions are replaced by a new
contractual obligation for the net amount due.
This net obligation may change continuously as
payment messages are sent and received during
the day. For example, agreements providing for
netting by novation in the London forward foreign
exchange market are now being used by some
banks. This adjustment of contractual obligations
allows two parties to transfer only net amounts
due, thus reducing both the risk that each party
imposes on the other and daylight overdrafts.
The potential for reducing daylight overdrafts
using these and other netting arrangements may
be significant. Earlier Federal Reserve staff analyses suggest that if large banks shifted a portion of
their interbank overnight borrowing to rollovers,
continuing contracts, or term funds, then virtually
all their daylight overdrafts in reserve or clearing
accounts could be eliminated. The size of the
necessary shift was estimated to range from 13 to
50 percent, depending on the pattern of the bank's
payments and funding. 4
Pricing Fedwire
Daylight
Overdrafts
Pricing of Fedwire overdrafts could provide depository institutions with additional incentives to
reduce daylight overdrafts by placing the cost of
overdrafts on the banks and payment system
users that create and benefit from overdrafts.
Pricing could be implemented within the existing
policy framework of cross-system and network
sender net debit caps. Sender net debit caps seek
852
Federal Reserve Bulletin • November 1987
to limit maximum daylight overdrafts and therefore impose an "implicit price" on overdrafts
that would otherwise be above this limit. Explicit
pricing would discourage overdrafts that occur
within these caps. Operational problems at the
Reserve Banks would be an important practical
difficulty to overcome if pricing were adopted.
For example, Reserve Bank computer problems
can delay the receipt of incoming payments and
hence increase measured overdrafts at some depository institutions through no fault of their
own.
Establishment
of Liquidity
Reserves
The establishment of liquidity reserves to cover
daylight overdrafts on Fedwire, or even on private systems like CHIPS, is another possible
method for reducing payment system risk. Cash
or very close substitutes could be held in special
accounts at Reserve Banks or at a special-purpose institution to cover some or all overdrafts.
Liquidity reserves might also earn interest at
rates approaching those for overnight or other
short-term funds available in the market. In
essence such liquidity reserves would ensure that
payment or settlement defaults would not occur,
in much the same way as the posting of collateral
provides security against defaults.
One potential advantage of cash or near-cash
reserves over less liquid forms of collateral
would be that settlement could be assured in the
event of defaults with little or no disruption of
financial markets. By contrast, if less liquid
forms of collateral were held, disruptive largescale sales might be required to raise the funds
needed to assure settlements. On the other hand,
liquidity reserves would likely be financed in
large part by increased deposits or by sales of
some of a depository institution's assets, which
are already financed largely by deposits. In effect, payments system risk borne by the federal
safety net would be shifted more explicitly
to depositors, creditors, and shareholders of depository institutions. But, to the extent that
deposits are federally backed, the risk borne by
the federal safety net might be substantially
unaltered.
CONCLUSION
The Federal Reserve System's initial policy for
reducing payments system risk has slowed the
growth of daylight overdrafts, especially considering the more rapid growth of the dollar volume
of payments. The policy has focused the attention of the financial industry and its customers on
the risks inherent in the use of daylight overdrafts and has led institutions to exercise better
control of daylight exposures to financial risk.
Nevertheless, the magnitude of daylight overdrafts remains sizable. The Federal Reserve is
currently analyzing longer-term policies for the
management of the risk associated with these
overdrafts.
NOTES
1. See David B. Humphrey, "Payments Finality and Risk
of Settlement Failure," in Anthony Saunders and Lawrence
White, eds., Technology and the Regulation of Financial
Markets (Lexington Books, 1986).
2. The policy is described in 50 Fed. Reg. 21,120 (May 22,
1985) and 52 Fed. Reg. 29,255 (August 6, 1987).
3. Adjusted primary capital for U.S. chartered banks is the
sum of primary capital (including common stock, perpetualpreferred stock, surplus, undivided profits, contingency and
other capital reserves, qualifying mandatory convertible instruments, allowances for possible loan and lease losses, and
minority interests in equity accounts of consolidated subsidiaries) less all intangible assets and deferred net losses on
loans and other assets sold. Comparable definitions apply for
thrift institutions, Edge and agreement corporations, and
other types of depository institutions.
4. See David B. Humphrey, David Mengle, Oliver Ireland,
and Alisa Morgenthaler, "Pricing Fedwire Daylight Overdrafts" (Board of Governors of the Federal Reserve System,
January 13, 1986), p. 17.
853
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.
From time to time the results of studies that are
of general interest to the professions and to
others are summarized in the FEDERAL RESERVE
BULLETIN.
The analyses and conclusions set forth are
those of the authors and do not necessarily
STUDY
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 BULLETIN
are available without charge. The list of Federal
Reserve Board publications at the back of each
BULLETIN includes a separate section entitled
"Staff Studies" that lists the studies that are
currently available.
SUMMARY
THE FUNDING
OF PRIVATE
Mark J. Warshawsky—Staff,
PENSION
Board of
PLANS
Governors
Prepared as a staff study in the winter of 1986
The ability of private pension plans to pay promised retirement benefits to employees has been
the focus of considerable interest in the arenas of
public policy and financial accounting standards.
The Employee Retirement Income Security Act
of 1974 mandates minimum funding standards for
most privately sponsored pension plans. The act
requires the reporting of extensive information
about plan assets, liabilities, and fund management to give regulatory authorities and plan
participants the ability to judge the financial
security of a pension plan. The act also established the Pension Benefit Guaranty Corporation, financed by premium payments from pension plans, to ensure that a minimum level of
retirement benefits would be paid even if a plan
sponsor were to go bankrupt and assets were
insufficient to fund obligations. More recently,
the Financial Accounting Standards Board has
set uniform standards for reporting pension expenses, liabilities, and assets in financial statements. The users of financial statements, in
particular the investor community, will thereby
be given more accurate and comparable information about the obligations of plan sponsors and
the assets set aside to discharge those obligations.
Concerns about the security of pension plans
have increased recently. Responding to excellent
investment performance in the stock and bond
markets, many pension sponsors have reduced
funding contributions and some have even terminated their plans to recapture assets in excess of
liabilities. On the other hand, some sponsors in
troubled industries have had their badly underfunded plans terminated, burdening the Pension
Benefit Guaranty Corporation (PBGC) with large
liabilities. The exit of healthy overfunded plans
and the continued existence of financially weak
underfunded plans has increased the risk exposure of the PBGC.
Any analysis of the financial health of pension
plans and of appropriate regulatory responses
depends critically on accurate information about
the nature and amount of plan liabilities. This
study briefly reviews the regulatory, institution-
854
Federal Reserve Bulletin • November 1987
al, and economic factors relevant to pension plan
obligations. It surveys the literature on the appropriate conceptual framework for measuring
pension obligations and summarizes financial
accounting standards for calculating and reporting the liability of a pension plan. The study
describes, on reported and adjusted bases, the
recent funded status (measured by the ratio of
assets to liabilities) of a large sample of private
pension plans. And it explains how minimum and
maximum funding standards are calculated under
rules set forth by the Employee Retirement Income Security Act (ERISA), how these standards determine funded ratios, and how some
recent proposals could change funding standards. The study focuses on defined benefit
plans—pensions under which the benefit level is
predetermined and employer contributions are
adjusted to meet anticipated liabilities. Defined
contribution plans—pensions under which the
contribution rate is predetermined and benefits
depend on investment performance—by definition have a matched asset-liability status and
pose no risk either to their sponsor or to the
PBGC.
A major finding of the study is that the general
perception of an ongoing and robust improvement in the financial health of private pension
plans is incorrect. True, the ratios of fund assets
to plan liabilities (funded ratios) reported in
financial statements indicate that pension plans
were fully funded in 1981 and overfunded by
1985. However, the financial accounting methods used before 1987 to calculate pension liabilities mismeasured, and generally understated,
the ongoing obligation of plan sponsors. The
accounting standards gave no consideration to
future increases in the level of compensation on
which retirement benefits are based; they al-
lowed arbitrary interest rates to be used in the
valuation process; and they did not include in
any liability calculation partial cost-of-living adjustments to future benefits paid to retired employees, a reasonable expectation under many
plans. When reported liabilities are adjusted for
these considerations, the resulting funded ratios
indicate that pension plans are, on average,
underfunded and that their financial health has
improved only slightly over the 1981-85 period,
despite the strong rally in security prices.
A detailed examination of the distribution of
adjusted funded ratios of pension plans reveals a
wide range in their financial health. Some plans
have funded ratios under 50 percent, while others have ratios higher than 200 percent. In general, large plans and steel industry plans are poorly
funded. Despite the minimum funding standards
imposed by ERISA, plan sponsors still have
considerable discretion in funding contributions.
Sponsors may choose among many allowable
actuarial cost methods and assumptions; they are
allowed to create large supplemental liabilities
with long amortization schedules; and they may
obtain waivers of minimum funding requirements. Furthermore, sudden and adverse shifts
in business conditions in an industry that cause
massive layoffs can quickly increase the pension
liability per active plan participant. Required
contributions increase only slowly, however. As
a result, many plans are poorly funded even
while remaining within ERISA guidelines, and
underfunded plans pose considerable risk to the
PBGC. The accumulated large pools of assets in
other plans have a negative side too: because the
earnings on assets held in a pension fund are
largely exempt from corporate taxes, overfunded
plans represent a loss of tax revenues to the
government.
855
Industrial Production
Released for publication September 16
Industrial production increased an estimated 0.3
percent in August, after gains of 0.8 percent in July
and 0.7 percent in both June and May. The business equipment sector posted the largest increases
in August, while output of materials and consumer
goods edged up further. At 130.7 percent of the
1977 average, the total index in August was 4.5
percent higher than it was a year earlier.
Ratio scale,
1981
1983
1985
All series are seasonally adjusted. Latest figures: August.
1987
In market groups, output of consumer goods
was up about one-quarter of a percent despite a
sharp reduction in auto assemblies from an annual rate of 6.7 million units in July to a rate of 5.9
million in August. A further surge in light truck
production, of which a large proportion is for
consumer use, more than offset the decline in
auto assemblies. The cutback in autos reflected
an attempt to reduce inventory levels as well as
reported parts shortages. Output of goods for the
1 9 7 7 = 100
1981
1983
1985
1987
856
Federal Reserve Bulletin • November 1987
1977 = 100
Percentage change from preceding month
1987
1987
Group
Aug.
July
Apr.
May
June
July
Aug.
Percentage
change,
Aug. 1986
to Aug.
1987
Major market groups
Total industrial production
130.3
130.7
.1
.7
.7
.8
.3
4.5
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment..
Defense and space...
Intermediate products..
Construction supplies
Materials
138.9
137.3
129.3
120.1
132.8
143.8
186.3
144.2
130.8
118.6
139.4
138.0
129.5
120.5
132.9
145.2
186.8
144.1
130.9
118.9
-.4
-.4
-.7
-2.6
.0
.0
-.3
-.4
-.9
.8
1.1
1.0
1.2
1.8
1.0
.7
.2
1.6
.8
.1
.6
.6
.4
-.5
.6
1.3
-.4
.5
.9
.8
.6
.5
.5
.4
.6
.1
.3
1.0
1.1
1.1
.4
.5
.2
.3
.1
1.0
.3
-.1
.1
.2
4.2
4.1
3.5
4.1
3.4
4.2
3.2
4.5
4.4
5.0
Major industry groups
.6
.6
.7
135.4
132.7
139.2
98.6
114.3
135.0
132.1
139.0
98.6
113.9
Manufacturing
Durable
Nondurable
Mining
Utilities
1.0
2.2
.4
.3
.7
.8
1.7
1.0
.2
.5
4.6
4.1
5.3
2.3
5.5
NOTE. Indexes are seasonally adjusted.
home increased slightly, but, on balance, has
been sluggish throughout this year. Production of
nondurable consumer goods changed little in
August. Output of business equipment, which
has grown rapidly this year, rose sharply further
in August with increases in all major components; the most significant gains so far this year
have occurred in manufacturing and commercial
equipment, apparently reflecting improvement in
both domestic and foreign demand. Output of
intermediate products—supplies for both construction and business—was about unchanged in
August following several months of solid gains.
Recent strength in construction supplies, particularly lumber, may reflect, in part, the improved
trade situation.
Total industrial production—Revisions
Estimates as shown last month and current estimates
Index (1977=100)
Month
Previous
Current
128.3
128.8
129.8
128.4
129.2
130.3
130.7
May
June
July
August
Percentage change
from previous
months
Previous
.7
.4
.8
Current
.7
.7
.8
.3
Materials output rose 0.2 percent after having
risen on average about 1 percent in the preceding
two months. Production of durable materials—in
particular, equipment parts and metals—increased in August. Output of nondurable materials was up fractionally to a level more than 7
percent higher than it was a year earlier. Energy
materials were unchanged during the month.
In industry groups, manufacturing production
increased 0.3 percent in August, with durable
goods up 0.5 percent and total nondurables about
unchanged. Mining output was unchanged overall, but oil and gas extraction increased moderately. Production by utilities rose an estimated
0.4 percent.
In October revised indexes of industrial production will be issued for the period from January 1985 through mid-1987. The revision is based
on data unavailable at the time the original
estimates were made and also incorporates updated seasonal adjustment factors developed
from data through 1986. "Industrial Production," the October Federal Reserve statistical
release, G.12.3 will contain the revised indexes
both in seasonally adjusted and not seasonally
adjusted form.
857
Statement to Congress
Statement by Wayne D. Angell, Member, Board
of Governors of the Federal Reserve System,
before the Committee on Banking, Finance and
Urban Affairs, U.S. House of Representatives,
September 30, 1987.
I am pleased to appear before the House Committee on Banking, Finance and Urban Affairs in
response to your request that the Board of Governors of the Federal Reserve System provide
comments on proposals to establish, for farm
mortgage loans, a secondary market backed by a
government guarantee.
Secondary markets for private debt instruments, broadly defined as mechanisms whereby
loans are resold in the national financial market,
perform a function of growing importance in our
economy. Because of inherent factors such as
their remote geographic location or the small size
of their individual credit needs, borrowers in
some sectors lack direct access to the national
credit market. When their loans are securitized
or repackaged for that market, borrowers in such
a sector are more likely to obtain credit in
amounts and at interest rates that truly reflect the
relative creditworthiness of that sector, as determined in the national marketplace. Consequently, the nation's capital resources are more likely
to be allocated to the more productive uses,
promoting economic progress as well as equity.
Besides improving the credit-market access of
farm borrowers, substantial benefits could flow
to farm lenders from the establishment of a
secondary market for their mortgage loans. Rural
commercial banks, for example, would be enabled to become truly "full service" farm lenders, making long-term farm real estate loans as
well as the operating, machinery, and livestock
loans that constitute the major part of their
current farm loan business. It is relatively risky
for a small bank to hold a large amount of fixedrate, long-term loans in its own portfolio. Hence,
many rural banks have had to restrict such
lending, relying instead on greater amounts of
adjustable-rate mortgages. The ability to transfer
fixed-rate loans to investors via a secondary
market will allow banks to serve long-term credit
needs without undue exposure to the associated
risks posed by unexpected changes in either
interest rates or the profitability of farming.
A private secondary market, therefore, would
be a very positive development for both farm
borrowers and lenders. Before discussing how
current legislation could usefully facilitate the
development of such a private market, however,
I want to address the adverse effects of establishing the market via the easy route of providing a
guarantee on its offerings.
The introduction of a government guarantee
on the debt of a particular sector, whether placed
directly on the individual loans or on secondarymarket securities representing such loans, is a
very serious step. In taking such action, the
Congress, in effect, overrides the judgment of the
market and moves the credit rating of that sector
to the top rank, above that of all the other sectors
to which government backing has not been granted. The sector awarded such government backing is virtually assured of ample funds at relatively favorable interest rates. The problems of the
Farm Credit System in this decade provide a
compelling demonstration of the grave consequences that can follow excessive lending and
investment stimulated by artificially low interest
rates.
To be certain, in the past the nation deemed
the market's allocation of funds to be inappropriate. In these rare instances, legislation deliberately altering the decision of the market was
justified by an overwhelming public interest to
encourage additional borrowing for a specified
purpose or by a particular group. Government
backing increased borrowing for the construction
and purchase of homes. Similarly, government
guarantees helped college students to finance
their higher education. For both of these purposes, the Congress found increased debt-financed investment to be so much in the national
858
Federal Reserve Bulletin • November 1987
interest that it substituted the creditworthiness of
the nation for the original creditworthiness of the
targeted borrowers.
In the case of housing, the goal was to increase
homeownership; for student loans, to increase
the number of college-educated citizens. And
now, in turn, farm mortgage loan subsidies
would stimulate investment in farm productive
capacity. Capital improvements, machinery, and
operating expenses would tend to be funded from
the lower-cost mortgage funds, increasing the
amounts of these items. The resulting expansion
in agricultural production would be contrary to
the aim of existing farm programs, which attempt
to curtail production. Should greater productive
potential be stimulated at this time by a public
already shouldering much of the financial burden
of present farm productive capacity? And in
what other sectors would credit use and investment be curtailed? Only a limited volume of
savings is available to be channeled into investment and to the extent that funds are diverted to
agriculture, some other potential investment is
denied—perhaps the sort of productivity-enhancing investment our business sector needs so
badly to compete effectively in the international
arena.
In addition, the investment stimulus of subsidized, lower-priced mortgage credit could well
be manifested by driving up land prices; that is,
the cost advantage secured by farm borrowers
will tend to be capitalized in the price of land.
Ironically, because about two-fifths of farmland
is owned by nonfarmers, only three-fifths of this
capital gain will accrue to farmers. Furthermore,
to the extent that the interest rate advantage is
capitalized, only current landowners benefit. For
the next generation of farmers, the higher price
of the land will offset the lower interest rate.
For a land buyer to capture the benefit of the
relatively lower, subsidized mortgage interest
rate, he must be a borrower. Thus the availability
of government-backed credit will tend to increase the degree of leverage employed by farmers as well as by nonfarm investors in farmland;
indeed, as we have seen, the thought behind
providing government-backed credit is to increase the use of debt for specified purposes. But
in an industry such as agriculture, which is
subject to sharp financial swings arising from
both natural and economic causes, high debt
leverage can be extremely dangerous—as has
been painfully demonstrated during the past 10
years.
Despite these problems, within certain limits,
agriculture already is among the sectors for
which government-backed credit traditionally
has been legislated. Programs of the Farmers
Home Administration promote borrowing by
farmers with limited means, and in the past have
promoted borrowing by farmers that encountered natural disasters or economic emergencies.
In addition, credit markets have long regarded
the Farm Credit System, which represents one
type of secondary-market mechanism, as having
the implied standby backing of the government.
Implicit guarantees are called on to be made
explicit from time to time, as illustrated by the
assistance being requested by the Farm Credit
System. Over the long term, it would be in the
public interest to phase out these implicit and
other guarantees provided for farm lending. Instead, it is now proposed that the government
extend explicit backing, via a guarantee for mortgage-backed securities, to the farm mortgage
loans of all lenders.
Indeed, concern for financially distressed farm
borrowers and lenders other than those in the
Farm Credit System appears to have been part of
the motivation behind proposals for the government-backed secondary market. Initially, some
lenders may have envisioned the government
purchasing their weak loans at face value, just as
they proposed that the government purchase and
"warehouse" the farmland they had already
acquired through foreclosure. Similarly, some
troubled borrowers may have hoped that the
government would acquire their loans and then
exercise forbearance in the fashion of the Farmers Home Administration. It is clear that the
secondary market now being proposed accommodates neither of these ends. It will serve only
borrowers who are financially strong when the
loans are made, because the originating lender
will retain exposure to the first portion of any
eventual loss.
If, by introducing and maintaining high quality
standards, credit markets can be assured that the
loans are strong, a secondary market could exist
without a government guarantee. Its development, however, is considerably more difficult,
because a securitizing or pooling agency must be
Statement to Congress
established, credit quality standards promulgated, implemented, and enforced, and so forth.
Legislation could establish an agency that would
develop such a market, probably as an entity of
the Farm Credit System. Government assistance
to this venture that stops short of a guarantee
could be very helpful in the developmental phase
of a secondary market, particularly in view of the
technical challenge presented by the diversity of
farming. But, we should be very careful that
859
government sponsorship is not seen as an implicit government guarantee. Past experience suggests that a guarantee intended just to help get
the market started would be almost impossible to
withdraw because borrowers would loathe to
give up the considerable interest rate advantage.
It would seem best to face forthrightly the establishment of a private market at the very beginning.
•
860
Announcements
MEETING OF
CONSUMER ADVISORY
COUNCIL
The Federal Reserve Board announced that its
Consumer Advisory Council met on October 22
and 23, in sessions open to the public.
The Council's function is to advise the Board
on the exercise of the Board's responsibilities
under the Consumer Credit Protection Act and
on other matters on which the Board seeks its
advice.
REGULATION
U:
AMENDMENT
The Federal Reserve Board on September 16,
1987, adopted an amendment to Regulation U
(Credit by Banks for the Purpose of Purchasing
or Carrying Margin Stock) that will reduce the
paperwork burden for banks that take margin
stocks as collateral for loans. The amendment is
effective September 23.
The action no longer requires banks to use
Form FR U-l for loans of $100,000 or less that
are secured directly or indirectly by margin
stock.
CHANGES
IN BOARD
STAFF
The Board announced on October 1, 1987, the
establishment of a new organizational unit, the
Division of Monetary Affairs, and named Donald
L. Kohn Director. At the same time, the Board
appointed Michael J. Prell Director of the Division of Research and Statistics.
Mr. Kohn was previously Deputy Director
(Monetary Policy and Financial Markets) in the
Division of Research and Statistics and, before
that, Deputy Director for Monetary and Financial Policy. Mr. Prell most recently served as
Deputy Director of Research and Statistics.
The new division will have responsibility for
the analysis of monetary policy issues and for
liaison with the Open Market Desk of the Federal
Reserve Bank of New York and with other
government agencies on matters pertaining to
monetary policy operations and the government
securities market. It will be composed primarily
of staff drawn from the Division of Research and
Statistics, including the banking section and
members of the government finance and of the
econometrics and computer applications sections.
Also assigned to the new division are the
following: David E. Lindsey, Deputy Director,
formerly Associate Director in the Division of
Research and Statistics; Richard D. Porter, Assistant Director, formerly Assistant Director in
the Division of Research and Statistics; and
Normand R.V. Bernard, Special Assistant to the
Board, who transferred from the Office of Board
Members.
PROPOSED
ACTIONS
The Federal Reserve Board requested comment
on a proposed amendment to Regulation Z
(Truth in Lending) to implement a provision of
the Competitive Equality Banking Act of 1987
regarding adjustable-rate mortgage caps. The
provision would require creditors to include a
limit on the maximum interest rate that may be
charged on certain adjustable-rate transactions.
Comments should be received by the Board on
this matter by October 14, 1987.
The Federal Reserve Board also requested
comment on whether it should permit bank holding companies to acquire healthy thrift institutions and the terr™
™"ditions under which
such acquisitions
ermitted. Comment
is requested by >
), 1987.
861
SYSTEM
MEMBERSHIP:
ADMISSION
OF STATE
BANKS
Oklahoma
Oklahoma City
The following state banks were admitted to membership in the Federal Reserve System during the
period August 1 through August 31, 1987:
Texas
Sanger
Virginia
Richmond
Florida
Tampa
Maryland
Upper Marlboro
Terrance Bank of Florida
United Bank & Trust
Company of Maryland
Central Bank of
Oklahoma City
Sanger Bank
United Virginia Bank
862
Record of Policy Actions of the
Federal Open Market Committee
MEETING
HELD
1. Domestic
ON AUGUST
Policy
18,
1987
Directive
The information reviewed at this meeting suggested that economic activity has continued to
expand at a moderate pace in the current quarter.
Labor demand has been strong and the unemployment rate has declined further. The industrial sector apparently has benefited from increased international competitiveness. In addition, spending by domestic sectors has continued
to advance with spending on business equipment
remaining strong and retail sales picking up in
recent months. Price increases, although still
appreciable, have been somewhat smaller than in
the early part of the year, and wage inflation has
held at about the same slow pace as in 1986.
Household employment surged in July, and
the civilian unemployment rate edged down 0.1
percentage point to 6.0 percent, bringing the
cumulative decline so far this year to 0.7 percentage point. Payroll employment registered a sizable increase in July, after two months of slower
growth. Hiring remained strong in services, but
manufacturing employment recorded its largest
monthly gain in three years, and construction
employment was essentially unchanged in July
following earlier declines.
Gains in employment were associated with a
strong increase in industrial production in July.
The industrial production index rose 0.8 percent
and was revised upward for the previous two
months. Advances in July were widespread
among products and materials. Output of consumer goods rose noticeably with large increases
in production of light trucks and consumer nondurables. Output of business equipment also
registered a strong increase as a result of continued sharp advances for construction and mining,
manufacturing, and commercial equipment.
Retail sales posted large increases in June and
July, after a period of relatively sluggish growth
earlier in the year. Automotive dealers and gasoline stations recorded sizable sales gains in July,
although spending also increased at most other
types of stores. Upward revisions to data for
earlier months suggested that nominal spending
had been well maintained recently at stores specializing in general merchandise, apparel, and
certain durable goods.
Housing activity has leveled off in recent
months after declining earlier. Total starts were
at an annual rate of 1.61 million units in July,
essentially unchanged from the pace in May and
June. During the month an increase in singlefamily starts offset a decline in multifamily units.
Despite the rise in July, single-family homebuilding remained significantly below the robust pace
recorded during the early months of the year
when mortgage rates were at a nine-year low.
The decline in multifamily starts reflected the
continuing influence of high vacancy rates and
tax law changes.
Capital spending appeared to be strengthening,
especially for equipment. Real outlays for producers' durable goods rebounded in the second
quarter, after a steep tax-related decline in the
first quarter. In addition, recent data on new
orders suggested further gains in spending on
equipment in the period ahead. Outlays for nonresidential construction were little changed in the
second quarter after sharp declines over most of
the preceding two years; office building continued to decline in the second quarter, but spending was firm in most other sectors, especially in
petroleum drilling, which rose for a third consecutive quarter.
Nonfarm inventory investment apparently
slowed in the second quarter as auto dealers'
inventories leveled off after a rapid first-quarter
accumulation. Stockbuilding at nonauto trade
863
establishments picked up fairly sharply in April
and May, although serious inventory imbalances
were not evident. In manufacturing, inventories
increased slightly in the second quarter, but the
inventory-sales ratio at the end of June fell to the
lowest level of the current expansion.
The U.S. merchandise trade deficit in current
dollars was higher in June than in any previous
month of 1987, but it appeared to have changed
little on average between the first and second
quarters in nominal terms on a balance of payments basis. In real terms, the deficit recorded a
further improvement in the second quarter despite an increase in the quantity of imports of
petroleum and petroleum products. Available
data indicated some improvement in economic
activity in foreign industrial countries in the
second quarter, compared with the generally
weak first-quarter results. Indicators of economic activity in the United Kingdom suggested
broad-based strength. German construction activity rebounded from its first-quarter drop, although other indicators of German economic
activity showed less strength. In Japan, signs
were mixed, but growth in the consumer and
housing sectors seemed more robust in the latter
part of the quarter.
Inflation rates have slowed in recent months
but have continued to run above the pace in
1986. The recent slowdown has been concentrated among items other than food and energy; after
increasing rapidly in the first four months of the
year, the CPI excluding food and energy rose 0.3
percent in May and 0.2 percent in June. Consumer food prices rose sharply in May and June;
however, farm commodity prices have fallen
recently. Upward pressures on energy prices
have persisted, partly reflecting heightened tensions in the Persian Gulf, which pushed crude oil
prices up further in July. Prices of imports other
than oil rose sharply in the second quarter for a
fairly wide range of intermediate materials and
products. In addition, domestic producers have
raised prices for materials. Wage inflation remained comparatively moderate in the first half
of 1987.
At its meeting on July 7, the Committee adopted a directive that called for maintaining the
existing degree of pressure on reserve positions.
The members decided that somewhat greater or
lesser reserve restraint would be acceptable depending on indications of inflationary pressures
and on developments in foreign exchange markets, as well as on the behavior of the monetary
aggregates and the strength of the business expansion. M2 and M3 were expected to grow at
annual rates of 5 and IV2 percent respectively,
from June through September, while growth in
Ml was expected to remain below its pace in
1986 but to pick up from recent levels. The
intermeeting range for federal funds was left
unchanged at 4 to 8 percent.
Growth in M2 picked up a little in July but
remained sluggish; for the year through July
cumulative M2 growth fell further below the 5Vi
percent lower bound of the range established by
the Committee for 1987. The slightly faster
growth of M2 reflected a turnaround in Ml,
which edged up in July; demand deposits contracted, albeit less than in June, while other
checkable deposits rose moderately. M3 expanded at only a 2 percent rate in July as banks,
experiencing low loan demand, ran off large
CDs; in July this aggregate was somewhat below
the growth cone associated with the Committee's
5Vi to 8V2 percent range for this year. Total
reserves continued to decline in July, but at a
reduced rate; the decline largely reflected weakness in transactions deposits and decreases in
excess reserves. Adjustment plus seasonal borrowing at the discount window averaged $466
million for the three reserve maintenance periods
that ended since the meeting of the Committee
on July 7.
Federal funds traded generally at 6V2 to 63/4
percent during the intermeeting period. Most
other private, short-term rates were essentially
unchanged, but rates on Treasury bills backed up
considerably, particularly after legislative action
to raise the debt ceiling permitted a resumption
of auctions. At the same time, pay downs of bills
in weekly auctions slowed from the pace earlier
in the year. In the longer-term markets, yields on
Treasury and corporate bonds rose 25 to 35 basis
points since the July meeting. The pressures on
prices of petroleum coupled with relatively
strong economic data appeared to increase concerns about inflation and credit demands in the
future. Even so, stock prices increased appreciably over the intermeeting period.
864
Federal Reserve Bulletin • November 1987
The dollar was about unchanged on balance
since the July meeting of the Committee in terms
of a weighted average of other G-10 currencies.
It rose substantially through much of the period,
primarily in response to the tensions in the
Middle East and the relative strength of the U.S.
economy, but it subsequently fell back after the
publication of the June trade figures in mid
August. The dollar was stronger against the mark
than against the yen, perhaps reflecting a relatively sluggish outlook for the German economy.
Money market conditions tightened somewhat in
Germany and more in the United Kingdom and
remained unchanged in Japan. Long-term rates
rose significantly in all these countries, with the
largest rise occurring in Japan. The increase in
Japanese rates was attributed to signs of stronger
economic activity and concerns about the inflation implications of Mideast tensions.
The staff projections suggested that real GNP
would grow at a moderate rate through the end of
1988. Improvement in the external sector was
expected to provide substantial impetus for real
growth, as changes in the foreign exchange value
of the dollar helped to boost U.S. exports and
damp import growth. In contrast, growth in
domestic spending was anticipated to be relatively subdued. Rising import prices associated with
the fall in the value of the dollar were likely to
limit increases in real income and consumer
spending; budgetary pressures would constrain
government purchases; and the rise in mortgage
interest rates and high vacancy rates were expected to curtail construction activity. Business
equipment spending, however, should rise at a
moderate pace in coming quarters. After slowing
in the second half of the year, inflation was
expected to move back up in 1988 reflecting
pressures from non-oil import prices. Moreover,
with the civilian unemployment rate projected to
remain around 6 percent, slack in the labor
market would not have much of a damping
influence on wages. As a result, compensation
increases were expected to rise noticeably next
year.
In the Committee's discussion of the economic
situation and outlook, members commented that
recent indicators of business activity had a relatively strong tone and tended to reinforce earlier
expectations that a moderate rate of economic
expansion would be sustained. Indeed, in the
view of several members, the chances of any
deviation from such expectations were on the
side of faster economic growth with attendant
risks of intensifying inflationary pressures. Others, stressing the uncertainties that continued to
cloud the outlook for economic activity, viewed
the likelihood of a deviation from a moderate
growth scenario as more evenly balanced and the
risks of inflation as less worrisome.
During the Committee's discussion several
members reported that local business conditions
appeared to have strengthened, including evidence that some previously depressed manufacturing industries and also oil drilling and agriculture had tended to stabilize or were showing
increased signs of recovery. Business optimism
also was reported to have improved recently in
many areas. With regard to the outlook for
investment, it was noted that a number of recent
statistical indicators pointed on balance to stronger business capital spending. Other favorable
developments cited in this connection included
the surge in stock prices, indications of potentially sizable profit gains in some sectors of the
economy, and the prospect that with the depreciation of the dollar a larger share of the demand
for business equipment was likely to be met by
domestic producers. Some members commented
that consumer spending probably would be reasonably well maintained, if not robust, in light of
the impact of income tax changes on disposable
incomes, the strength of the stock market, and
other factors. On the negative side, it was suggested that the growth in consumer expenditures
might be relatively restrained, in part because
sales of automobiles were likely in this view to
remain weak on balance despite the temporary
fillip from sales incentive programs. Some members also referred to the emergence of unusually
conservative attitudes among business borrowers and farmers, at least in some parts of the
country.
The members continued to view an improvement in the trade balance as a key factor but also
as a major uncertainty in the outlook for economic expansion; in particular, a number of members
again questioned whether such improvement
would be substantial enough to provide more
than very modest support to the expansion. In
Record of Policy Actions of the FOMC
this view relatively sluggish growth in the economies of major trading partners and the persistence of numerous trade barriers pointed to
relatively limited gains in net exports, at least
over the quarters immediately ahead. Other
members were somewhat more optimistic about
the outlook for trade despite recently disappointing trade data. They felt that the depreciation of
the dollar and ongoing increases in the prices of
many imports had strengthened the competitive
position of U.S. firms in both domestic and
foreign markets. Such competitive gains were
already reflected in the stronger performance of
many domestic manufacturing industries and reports of increasing export opportunities were
multiplying.
The members expressed some divergence of
views with regard to the outlook for inflation, but
they generally agreed that domestic pressures on
prices did not appear to be intensifying currently
and that wage increases had remained moderate
despite the faster rise in prices experienced earlier in the year. Nonetheless, several members
stressed the risks of greater inflation over the
next several quarters, particularly if the expansion in economic activity proved to be on the
high side of their current expectations. These
members were concerned that the economy
might be at or near the point where relatively
rapid growth would result in more inflation,
given the substantial drop in unemployment to a
relatively low level this year; long-term debt
markets already reflected heightened inflationary
expectations. Another substantial increase in energy prices clearly would exacerbate the inflationary pressures, but the outlook for energy was
highly uncertain.
Other members agreed that inflation was a
potentially serious problem, but they saw a lesser risk of intensifying inflationary pressures.
These members tended to emphasize the possibility that economic growth would remain relatively moderate or that gains would tend to be
concentrated in previously depressed industries
that had greater margins of available labor and
production capacity. Moreover, business managers were likely to persist in their efforts to cut
costs and improve operating efficiencies, as evidenced by recent labor negotiations. Reference
also was made to broadly deflationary factors
865
including the moderate growth in the monetary
aggregates this year and an ample availability of
labor and productive capacity, especially for
basic commodities, in world markets. All of the
members agreed that a critical element in the
inflation outlook was the potential for rising
prices to be reflected at some point in rising
wages. Such a development would represent a
dangerous setback in the fight against inflation
and would greatly increase the costs of bringing
inflation under control.
At its meeting in July, the Committee had
reviewed the basic policy objectives established
in February for growth of the monetary and debt
aggregates in 1987 and had set tentative objectives for growth in 1988. For the period from the
fourth quarter of 1986 to the fourth quarter of
1987, the Committee had reaffirmed the ranges
established in February for growth of 5'/2 to 8V2
percent for both M2 and M3. The Committee
agreed that growth in these aggregates around
the lower ends of their ranges might be appropriate, depending on the circumstances. The monitoring range for expansion in total domestic
nonfinancial debt also was left unchanged at 8 to
11 percent for 1987. For 1988 the Committee had
agreed on tentative objectives for monetary
growth that included reductions of V2 percentage
point to ranges of 5 to 8 percent for both M2 and
M3. The Committee had also reduced the associated range for growth in total domestic nonfinancial debt by Vi percentage point to IVi to IOV2
percent for 1988. With respect to M l , the Committee had decided at the July meeting not to set
a specific target for growth over the remainder of
1987 or to establish a tentative range for 1988. It
was understood that all the ranges for 1988 were
provisional and that they would be reviewed
early next year in the light of intervening developments. The issues involved with establishing a
target for Ml would be carefully reappraised at
the beginning of 1988.
In the Committee's discussion of policy implementation for the weeks immediately ahead, a
majority of the members favored unchanged conditions of reserve availability, at least initially
during the intermeeting period, but some indicated a preference for a modest firming. The members recognized that monetary policy exerted its
effects with a lag and that inflationary forces
866
Federal Reserve Bulletin • November 1987
should not be allowed to gather momentum.
However, several stressed the uncertainties that
surrounded the outlook for prices and wages,
and in the view of a majority, more evidence of
sustained strength in the economy or of intensifying inflation was needed before action toward
firmer reserve conditions should be taken, particularly in the context of relatively slow monetary expansion. Some of these members also
commented that the Committee would have an
opportunity to review its decision within a few
weeks, given the relatively short interval until
the next scheduled meeting. Other members
gave somewhat greater emphasis to the potential
for more inflation. In this view some slight
firming at this point would have a favorable
effect on inflationary expectations and would
incur very little recessionary risk. Moreover,
such a move could be readily reversed if changing conditions seemed to warrant such a step
later.
In their review of the outlook for monetary
growth, the members took account of a staff
analysis that suggested that monetary expansion
was likely to accelerate from its sluggish pace in
recent months, assuming that interest rates remained around their current levels. The analysis
contemplated that growth in the broader aggregates would return to a pace closer to that in
nominal GNP as the interactive effects of earlier
increases in interest rates and the lagged adjustments in offering rates on various types of interest-bearing deposits abated. Recent monetary
data tended to support that expectation. It was
noted, however, that such faster monetary
growth was still likely to leave cumulative expansion in the broad aggregates through September
below the Committee's ranges for the year, especially in the case of M2. Some members commented that relatively slow monetary growth
appeared appropriate in light of the higher inflation and the increase in inflationary expectations
experienced this year. The latter had contributed
to higher market interest rates, which had curbed
demand for assets in the monetary aggregates
and had raised velocity. The possibility of some
further rise in velocity implied that limited monetary expansion might remain consistent with
satisfactory economic performance. However,
given the shortfall in the growth of the broader
aggregates from their 1987 ranges, a number of
members indicated that they would find acceptable somewhat faster growth in these aggregates
than was currently projected, provided that price
pressures did not appear to be worsening and the
dollar was not subject to substantial weakness.
The members differed to some extent in their
views regarding the emphasis that should be
given to various factors that might trigger intermeeting adjustments, if any, in the degree of
pressure on reserve positions. Most felt that
policy implementation should be especially alert
to developments that might call for somewhat
firmer reserve conditions, particularly if the
Committee decided against any initial firming in
those conditions. Other members believed that
there should be no presumptions about the likely
direction of any intermeeting adjustments, but
they could accept a directive that looked to
firming action as the more likely direction of any
adjustment. The members generally agreed that
developments relating to the outlook for inflation
should continue to receive important weight in
judging the need for any policy changes during
the intermeeting period. There was also considerable sentiment in favor of giving increased
attention to the overall performance of the economy in this period, given the recent signs of
strength. In addition, several members commented that a possible weakening of the dollar in
the foreign exchange markets might call for a
policy response in the period ahead, but some
other members cautioned that dollar developments would need to be interpreted with particular care. It was noted in this regard that the dollar
was still appreciably above the lows it had
reached in the spring, and in this view a judgment
would need to be made as to whether any weakness in the dollar related more to uncertainties
about oil market developments than to fundamental concerns about underlying inflationary
pressures in the economy. Nevertheless, Committee members generally remained sensitive to
developments relating to the dollar.
At the conclusion of the Committee's discussion, all of the members indicated that they
favored or could accept a directive that called for
no change, at least initially, in the degree of
pressure on reserve positions. With regard to
possible adjustments during the intermeeting pe-
Record
riod, the m e m b e r s indicated that somewhat
greater reserve restraint would be acceptable,
while slightly lesser reserve restraint might be
acceptable, depending on developments relating
to inflation, the strength of the business expansion, the p e r f o r m a n c e of the dollar in foreign
exchange markets, while also taking account of
the behavior of the monetary aggregates. Unchanged conditions of reserve availability were
expected to be consistent with growth in M2 and
M3 at annual rates of around 5 percent for the
three-month period f r o m June to September;
given its p e r f o r m a n c e in July, expansion in M3
was expected to be somewhat less than had been
anticipated at the time of the July meeting. Over
the same period growth in M l was expected to
pick up f r o m its average pace over the past
several m o n t h s but to remain well below its rate
of expansion in 1986. Because the behavior of
M l was still subject to unusual uncertainty and in
keeping with the decision not to set a longer-run
target for M l , the Committee decided to continue the practice of not specifying a numerical
expectation for its short-run growth. The members agreed that the intermeeting range for the
federal f u n d s rate, which provides a mechanism
for initiating consultation of the Committee w h e n
its boundaries are persistently exceeded, should
be left unchanged at 4 to 8 percent.
At the conclusion of the meeting the following
domestic policy directive w a s issued to the Federal Reserve Bank of N e w York:
The information reviewed at this meeting suggests
on balance that economic activity is expanding at a
moderate pace in the current quarter. In July, total
nonfarm payroll employment rose considerably further; the increase included continuing large gains in
the service-producing sector and a sizable advance in
manufacturing. The civilian unemployment rate fell
slightly further to 6.0 percent. Industrial production
increased strongly in July after rising moderately on
balance in the first half of the year. Consumer spending grew at a reduced pace earlier in the year but retail
sales posted large increases in June and July. Housing
starts were unchanged in July and remained at their
reduced second-quarter level. Recent indicators of
business capital spending point to some strength,
particularly in equipment outlays. The rise in consumer and producer prices has been moderate in recent
months, but for the year to date prices generally have
risen more rapidly than in 1986, primarily reflecting
sizable increases in prices of energy and non-oil im-
of Policy Actions
of the FOMC
867
ports. Wage increases have remained relatively moderate in recent months.
In foreign exchange markets, the trade-weighted
value of the dollar in terms of the other G-10 currencies was unchanged on balance since the meeting of
the Committee on July 7. In the second quarter the
merchandise trade deficit in current dollars was about
the same as in the first quarter.
The monetary aggregates grew slowly in July. For
1987 through July, expansion of both M2 and M3 has
been below the lower ends of the ranges established by
the Committee for the year, while growth in Ml has
been well below its pace in 1986. Expansion in total
domestic nonfinancial debt has moderated this year.
Most long-term interest rates have risen somewhat
since the July meeting; in short-term markets, Treasury bill rates also have increased somewhat while
private rates are little changed. Stock prices have risen
substantially since the latest meeting.
The Federal Open Market Committee seeks monetary and financial conditions that will foster reasonable
price stability over time, promote growth in output on
a sustainable basis, and contribute to an improved
pattern of international transactions. In furtherance of
these objectives the Committee agreed at its meeting
in July to reaffirm the ranges established in February
for growth of 5lA to 8'A percent for both M2 and M3,
measured from the fourth quarter of 1986 to the fourth
quarter of 1987. The Committee agreed that growth in
these aggregates around the lower ends of their ranges
may be appropriate in light of developments with
respect to velocity and signs of the potential for some
strengthening in underlying inflationary pressures,
provided that economic activity is expanding at an
acceptable pace. The monitoring range for growth in
total domestic nonfinancial debt set in February for
the year was left unchanged at 8 to 11 percent.
For 1988, the Committee agreed on tentative ranges
of monetary growth, measured from the fourth quarter
of 1987 to the fourth quarter of 1988, of 5 to 8 percent
for both M2 and M3. The Committee provisionally set
the associated range for growth in total domestic
nonfinancial debt at lx/z to IOV2 percent.
With respect to Ml, the Committee recognized that,
based on experience, the behavior of that aggregate
must be judged in the light of other evidence relating to
economic activity and prices; fluctuations in Ml have
become much more sensitive in recent years to
changes in interest rates, among other factors. Because of this sensitivity, which has been reflected in a
sharp slowing of the decline in Ml velocity over the
first half of the year, the Committee again decided at
the July meeting not to establish a specific target for
growth in Ml over the remainder of 1987 and no
tentative range was set for 1988. The appropriateness
of changes in Ml this year will continue to be evaluated in the light of the behavior of its velocity, developments in the economy and financial markets, and the
nature of emerging price pressures. The Committee
welcomes substantially slower growth of Ml in 1987
868
F e d e r a l R e s e r v e Bulletin • N o v e m b e r 1987
than in 1986 in the context of continuing economic
expansion and some evidence of greater inflationary
pressures. The Committee in reaching operational
decisions over the balance of the year will take account of growth in Ml in the light of circumstances
then prevailing. The issues involved with establishing
a target for Ml will be carefully reappraised at the
beginning of 1988.
In the implementation of policy for the immediate
future, the Committee seeks to maintain the existing
degree of pressure on reserve positions. Somewhat
greater reserve restraint would, or slightly lesser reserve restraint might, be acceptable depending on
indications of inflationary pressures, the strength of
the business expansion, developments in foreign exchange markets, as well as the behavior of the aggregates. This approach is expected to be consistent with
growth in M2 and M3 over the period from June
through September at annual rates of around 5 percent. Growth in Ml, while picking up from recent
levels, is expected to remain well below its pace during
1986. The Chairman may call for Committee consultation if it appears to the Manager for Domestic Operations that reserve conditions during the period before
the next meeting are likely to be associated with a
federal funds rate persistently outside a range of 4 to 8
percent.
Votes for this action: Messrs. Greenspan, Corrigan, Angell, Boehne, Boykin, Heller, Johnson,
Keehn, Kelley, Ms. Seger, and Mr. Stern. Votes
against this action: None.
2. Authorization
for
Domestic
Open Market
Operations
Effective A u g u s t 19, 1987, the C o m m i t t e e approved a t e m p o r a r y increase of $6 billion, to $12
billion, in t h e limit b e t w e e n C o m m i t t e e meetings
on changes in S y s t e m A c c o u n t holdings of U . S .
government and federal agency securities specified in p a r a g r a p h 1(a) of t h e Authorization f o r
Domestic Operations. T h e increase w a s effective
for the intermeeting period ending with the close
of business on S e p t e m b e r 22, 1987.
Votes for this action: Messrs. Greenspan, Corrigan, Angell, Boehne, Boykin, Heller, Johnson,
Keehn, Kelley, Ms. Seger, and Mr. Stern. Votes
against this action: None.
This action w a s t a k e n on the r e c o m m e n d a t i o n
of the M a n a g e r f o r Domestic Operations. T h e
Manager had advised that the normal leeway of
$6 billion f o r changes in the S y s t e m ' s a c c o u n t
would not b e sufficient o v e r the intermeeting
period b e c a u s e a large buildup in the T r e a s u r y
cash balance at F e d e r a l R e s e r v e Banks w a s
expected a f t e r the S e p t e m b e r tax date.
869
Legal Developments
AMENDMENT
TO REGULATION
U
The Board of Governors is amending 12 C.F.R. Part
221, its Regulation U, by issuing a final rule that
exempts banks, when making loans of $100,000 or
less, from the requirement of executing Federal Reserve Form U-l.
Effective September 23, 1987, 12 C.F.R. Part 221 is
amended as follows:
Part 221—Credit by Banks for the Purpose of
Purchasing or Carrying Margin Stock
PREEMPTION
REGULATION
DETERMINATION
B
UNDER
The Board of Governors has determined that certain
provisions of the Family Code of Wisconsin are not
inconsistent with the Equal Credit Opportunity Act or
Regulation B. This determination is made under authority delegated to the Director of the Division of
Consumer and Community Affairs.
Effective November 1, 1987, the Board has determined that the provisions in the Family Code of
Wisconsin specified below are not preempted by 12
C.F.R. Part 202.
1. The authority citation for 12 C.F.R. Part 221 continues to read as follows:
Part 202—Equal Credit
Authority: 15 U.S.C. §§ 78c, 78g, 78h and 78w.
1. The authority citation for 12 C.F.R. Part 202 continues to read as follows:
2. Part 221 is amended by revising paragraph 221.3(b),
redesignating (c)(i) and (c)(ii) as (c)(1) and (c)(2), and
revising (c)(1) as follows:
Section 221.3—General Requirements
(b) Purpose statement. Except for credit extended
under paragraph (c) of this section, whenever a bank
extends credit secured directly or indirectly by any
margin stock, in an amount exceeding $100,000, the
bank shall require its customer to execute Form FR
U-l (OMB No. 7100-0115), which shall be signed and
accepted by a duly authorized officer of the bank
acting in good faith.
(c) Purpose statement for revolving-credit or multipledraw agreements.
(1) If a bank extends credit, secured directly or
indirectly by any margin stock, in an amount exceeding $100,000, under a revolving-credit or other
multiple-draw agreement, Form FR U-l can either
be executed each time a disbursement is made under
the agreement, or at the time the credit arrangement
is originally established.
Opportunity
Authority: 15 U.S.C. 1691 et seq.
2. The Board examined Wisconsin Statutes sections
766.56(2)(d), 766.56(3)(b), and 766.565(5) to determine
whether requirements imposed by these sections are
inconsistent with the Equal Credit Opportunity Act or
Regulation B, which implements that Act. As to
sections 766.56(2)(d) and 766.56(3)(b), dealing with
marital status and other inquiries, no inconsistency
was found with federal law. As to section 766.565(5),
an inconsistency was found with federal law; however,
the Board has determined not to preempt that section
based on section 705(b) of the Equal Credit Opportunity Act implementing section 202.6(c) of Regulation B,
which allows creditors to take into account state
property laws that directly or indirectly affect creditworthiness.
POLICY STATEMENT REGARDING
RESERVE BANK
SERVICES
FEDERAL
Effective September 18, 1987, the Board of Governors
adopts the following factors that it will consider when
reviewing prosposals to consolidate Federal Reserve
Bank priced services across District lines,
a. Maintenance or improvement of cost recovery in
a service.
870
Federal Reserve Bulletin • November 1987
b. Improvement of the efficiency of Federal Reserve
Bank operations.
c. Maintenance of improvement of the level or
quality of service.
d. Responsiveness to changes in the financial services industry.
e. Effect on private sector providers of the service.
f. Effect on users of the service.
The Board will use the following procedures when
implementing consolidation of Federal Reserve Bank
priced services across District lines:
1. Public comment will be solicited when changes
in fees and service arrangements are proposed
that would have significant longer-run effects on
the nation's payments mechanism. Public comment will also be solicited the first time any
Reserve Bank priced service is proposed for consolidation across District lines.
2. Advance notice prior to implementing an interdistrict consolidation will be at least 60 days and
may be longer to enable private-sector users and
providers of the service a reasonable amount of
time to adjust to the change.
ORDERS
COMPANY
SERVICE
RESERVE
ISSUED
UNDER
BANK
HOLDING
ACT, BANK MERGER ACT,
CORPORATION
ACT
ACT,
AND
BANK
FEDERAL
Orders Issued Under Section 3 of the Bank
Holding Company Act
Houghton Financial, Inc.
Houghton, Michigan
Order Approving Acquisition of a Bank
Houghton Financial, Inc., Houghton, Michigan, a
bank holding company within the meaning of the Bank
Holding Company Act (12 U.S.C. § 1841 et seq. (the
"Act")), has applied for the Board's approval under
section 3 of the Act (12 U.S.C. § 1842) to acquire
Commercial National Bank, L'Anse, Michigan
("Bank").
Notice of the application, affording interested parties an opportunity to submit comments, has been
given in accordance with section 3(b) of the Act (52
Federal Register 26,083 (1987)). The time for filing
comments has expired, and the Board has considered
the application and all comments received in light of
the factors set forth in section 3(c) of the Act.
Applicant, the 96th largest commercial banking organization in Michigan, controls one subsidiary bank
with $43.3 million in total deposits, representing less
than 0.1 percent of total deposits in commercial banks
in the state.1 Bank is the 118th largest banking organization in Michigan and controls total deposits of $34.0
million, representing less than 0.1 percent of the total
deposits in commercial banks in the state. Upon
consummation of the proposed transaction, Applicant
will become the 62nd largest banking organization in
Michigan, with total deposits of $77.3 million, representing approximately 0.1 percent of total deposits in
the state. Consummation of this proposal would not
have any significant adverse effect on the concentration of banking resources in Michigan.
Applicant and Bank compete directly in the Calumet
banking market.2 Applicant is the third largest of six
commercial banking organizations in the market, with
total deposits of $43.3 million, representing 18.5 percent of the deposits in commercial banks in the market. Bank is the fourth largest commercial banking
organization in the market, with deposits of $34.0
million, representing 14.5 percent of the deposits in
commercial banks in the market. After consummation
of the proposal, Applicant's share of the deposits in
commercial banks in the market would be 33.0 percent. The Calumet banking market is considered highly concentrated with a four-firm concentration ratio of
83.6 percent which, upon consummation, would increase to 92.1 percent. The Herfindahl-Hirschman
Index ("HHI") would increase by 538 points to 2505.3
Although consummation of the proposal would eliminate some existing competition between Applicant
and Bank in the Calumet banking market, numerous
other depository institutions would remain as competitors in the market. In addition, the Board has considered the presence and competition provided by thrift
institutions in the market.4 The largest depository
institution in the market is a thrift institution that
controls 52.8 percent of the market's total deposits.
The thrift institution exerts a considerable competitive
influence in the market as a provider of NOW accounts and consumer loans, holding nearly one-fourth
1. Banking data are as of December 31, 1986.
2. The Calumet banking market is approximated by Baraga,
Houghton, and Keweenaw Counties, Michigan.
3. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), any market in which the postmerger HHI is above 1800 is considered highly concentrated. The
Department has informed the Board that a bank merger or acquisition
generally will not be challenged (in the absence of other factors
indicating anticompetitive effects) unless the post-merger HHI is at
least 1800 and the merger increases the HHI by at least 200 points.
The Justice Department has stated that the higher than normal HHI
thresholds for screening bank mergers for anticompetitive effects
implicitly recognizes the competitive effect of limited-purpose lenders
and other nondepository financial entities.
4. The Board has previously indicated that thrift institutions have
become, or have the potential to become, major competitors of
commercial banks. National City Corporation, 70 FEDERAL RESERVE
BULLETIN 743 (1984); NCNB
Bancorporation,
70 FEDERAL RESERVE
BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL
RESERVE BULLETIN 802 (1983); and First Tennessee National Corporation,
69 FEDERAL RESERVE BULLETIN 298 (1983).
Legal Developments
of the consumer loans and 14 percent of the transaction accounts in the market. Based upon the above
considerations, the Board concludes that consummation of the proposal is not likely to substantially lessen
competition in the Calumet banking market.5
The financial and managerial resources of Applicant, its subsidiary bank, and Bank are consistent with
approval. Considerations relating to the convenience
and needs of the communities to be served are also
consistent with approval. Based on the foregoing and
other facts of record, the Board has determined that
consummation of the proposed transaction would be in
the public interest and that the application should be,
and hereby is approved.
On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be consummated before the thirtieth
calendar day following the effective date of this Order,
or later than three months after the effective date of
this Order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
Minneapolis pursuant to delegated authority.
By order of the Board of Governors, effective
September 25, 1987.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, and Kelley.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
Mitsui Trust & Banking Company, Limited
Tokyo,Japan
Order Approving Formation of a Bank Holding
Company
Mitsui Trust & Banking Company, Limited, Tokyo,
Japan, has applied for the Board's approval under
section 3(a)(1) of the Bank Holding Company Act (the
"Act") (12 U.S.C. § 1842(a)(1)) to become a bank
holding company by acquiring 100 percent of the
voting shares of Mitsui Trust Bank (U.S.A.), New
York, New York ("Bank"), a de novo bank.
Notice of the application, affording opportunity for
interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing comments has expired, and the Board
5. If 50 percent of deposits held by thrift institutions in the Calumet
banking market were included in the calculation of market concentration, the share of total deposits held by the four largest organizations
in the market would be 52.4 percent. Applicant would control 11.6
percent of the market's deposits and Bank would control 9.1 percent
of the market's deposits. The HHI would increase by 212 points to
2220.
871
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, with total unconsolidated assets equivalent to approximately $100.2 billion, ranks as the third
largest of eight trust banks in Japan.1 Worldwide,
Applicant ranks as the 19th largest bank. Applicant
operates 55 branches in Japan as well as four foreign
branches and agencies and six representative offices.
In addition, Applicant engages worldwide in banking
and nonbanking financial activities through six wholly
owned subsidiaries located outside Japan.2
In the United States, Applicant operates a branch in
New York, New York, with total assets of $4.7 billion3
and an agency in Los Angeles, California, with total
assets of $1.9 billion.4 Applicant has selected New
York as its home state under the Board's Regulation K
(12 C.F.R. 211.22(b)). Bank will be located in Applicant's home state. Accordingly, the Board concludes
that the acquisition of Bank by Applicant is consistent
with Section 5 of the International Banking Act of 1978
(12 U.S.C. § 3103).
Bank, a de novo institution, is being organized as a
state-chartered nonmember bank. It will serve the
Metropolitan New York—New Jersey banking market5 and will place primary emphasis on providing
trust-related services to Applicant's customers not
currently available through Applicant's existing U.S.
branch and agency. In view of the de novo status of
Bank and based upon the facts of record, the Board
concludes that the proposed transaction will have no
1. Banking data are as of March 31, 1987, and reflect the yen/dollar
exchange rate as of that date. Rankings are as of December 31, 1986.
2. Mitsui Trust Finance (Hong Kong) Ltd., Hong Kong (merchant
banking); Mitsui Trust Bank (Europe) S.A., Brussels, Belgium (merchant banking); Mitsui Trust Finance (Switzerland) Ltd., Zurich,
Switzerland (merchant banking); Mitsui Trust Finance (Australia)
Ltd., Sydney, Australia (commercial banking); Mitsui Trust International Ltd., London, England (underwriting and dealing in securities);
and Mitsui Trust do Brasil S/C Ltda., Sao Paulo, Brazil (characterized
under Brazilian law as a representative office).
3. Banking data for branch and agency are as of March 31, 1987.
4. Applicant owns a minority interest in two companies that in turn
have wholly owned subsidiaries engaged in business in the United
States. Mitsui Soko Co., Ltd., a warehousing and leasing company,
owns 100 percent of Mitsui-Soko (U.S.A.), which engages in shipping,
trucking, and warehousing. Mitsui Leasing & Development, Ltd.,
engages in industrial and commercial leasing and installment sales and
financing. Its wholly owned subsidiary, Mitsui Leasing (U.S.A.) Inc.,
holds a 70 percent interest in Mitsui Leasing of America Inc. Both are
engaged in the same line of business as their parent companies and
account for substantially less than 50 percent of the parent companies'
total assets and revenues. These investments meet the criteria for an
exemption under sections 211.23(f)(5)(i) and (ii) of Regulation K
(12 C.F.R. 211 et seq.). In addition, Japan's Anti-Trust Law will
require Applicant to reduce its holdings in the two companies to 5
percent or less by December 31, 1987.
5. The Metropolitan New York—New Jersey market is defined to
include New York City and Long Island, New York; Putnam,
Sullivan, Westchester, Rockland, and Orange Counties in New York;
Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris,
Ocean, Passaic, Somerset, Sussex, Union, and Warren Counties in
New Jersey; and portions of Fairfield County in Connecticut.
872
Federal Reserve Bulletin • November 1987
significant adverse effects on existing or probable
future competition, and will not significantly increase
the concentration of resources in any relevant market.
Thus, competitive considerations are consistent with
approval of the application.
Section 3(c) of the Act requires the Board in every
case to consider the financial resources of an applicant
organization and the bank or bank holding company to
be acquired. The Board previously has stated that it
believes that the principles of national treatment and
competitive equity require, in general, that foreign
banks seeking to establish or acquire banking organizations in the United States meet the same general
standards of strength, experience, and reputation as
are required of domestic banking organizations and
that foreign banks be able to serve on a continuing
basis as a source of strength to their banking operations in the United States.6 The Board is also aware
that foreign banks operate outside the United States in
accordance with different regulatory and supervisory
requirements, accounting principles, asset quality
standards, and banking practices and traditions, and
that these differences make it difficult to compare the
capital positions of domestic and foreign banks.
The appropriate balancing of these concerns raises a
number of complex issues which the Board believes
require careful consideration and that the Board continues to have under review. In this regard, the Board
recently has announced a proposal to supplement its
consideration of capital adequacy with a risk-based
system that is simultaneously being proposed by the
Bank of England and the other domestic federal banking agencies. 52 Federal Register 9,304 (1987). The
Board considers this proposal an important step toward a more consistent and equitable international
norm for assessing capital adequacy. While the Board
will continue to apply a case-by-case approach during
the pendency of discussions regarding this proposal,
once such a system is adopted, applications by foreign
banks seeking to make acquisitions in the United
States would be judged in the context of such guidelines.
In the present instance, the primary capital ratio of
Applicant, as publicly reported, is well below the
Board's capital adequacy guidelines.7 In similar cases,
the Board has considered mitigating factors, including
adjustments to an applicant's capital to reflect differ-
6. See Ljubljanska Banka-Associated Bank, 72 FEDERAL RESERVE
BULLETIN 489 (1986); The Mitsubishi Trust and Banking Corporation,
72 FEDERAL RESERVE BULLETIN 256 (1986); The Industrial Bank of
Japan, Ltd., 72 FEDERAL RESERVE BULLETIN 71 (1986); The Mitsubishi Bank, Limited, 70 FEDERAL RESERVE BULLETIN 518 (1984). See
also Policy Statement on Supervision and Regulation of ForeignBased Bank Holding Companies, Federal Reserve Regulatory Service 11 4-835 (1979).
7. Capital Adequacy Guidelines, 50 Federal Register 16,057 (1985),
7 1 FEDERAL RESERVE B U L L E T I N 4 4 5 ( 1 9 8 5 ) .
ences in accounting and regulatory practices. After
certain adjustments to account for Japanese banking
and accounting practices, including consideration of a
modest portion of the unrealized appreciation in Applicant's portfolio of equity securities (after taking into
account possible fluctuations in valuation and the
effects of taxation), Applicant's capital ratio more
nearly approximates U.S. standards. The Board also
has considered additional factors that mitigate its
concern. The Board has placed considerable emphasis
on the fact that Applicant will establish Bank de novo,
and that Bank will be strongly capitalized and small in
relation to Applicant. The Board notes further that
Applicant is in compliance with the capital and other
financial requirements of Japanese banking organizations, and that Applicant has given the Board certain
assurances regarding its capital.
The Board expects that Applicant will maintain
Bank as among the more strongly capitalized banking
organizations of comparable size in the United States.
Based on these and other facts of record, including
certain commitments made by Applicant, the Board
concludes that financial and managerial factors are
consistent with approval of this application to acquire
Bank. Considerations relating to the convenience and
needs of the communities to be served are also consistent with approval.
Based upon the foregoing and other facts of record,
the Board has determined that consummation of the
transaction would be in the public interest and 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, and Bank must open for business
not later than six months after the effective date of this
Order. The latter two periods may be extended for
good cause by the Board or the Federal Reserve Bank
of New York, pursuant to delegated authority.
By order of the Board of Governors, effective
September 2, 1987.
Voting for this action: Chairman Greenspan and Governors
Johnson, Angell, and Kelley. Absent and not voting: Governors Seger and Heller.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
NewMil Bancorp, Inc.
New Milford, Connecticut
Order Approving Formation of a Bank Holding
Company
NewMil Bancorp, Inc., New Milford, Connecticut,
has applied for the Board's approval under section
Legal Developments
3(a)(1) of the Bank Holding Company Act ("BHC
Act" or "Act") (12 U.S.C. § 1842(a)(1)), to become a
bank holding company by acquiring New Milford
Savings Bank, New Milford, Connecticut ("Bank").1
Notice of the application, affording opportunity for
interested persons to submit comments, has been
given in accordance with section 3(b) of the Act (52
Federal Register 23,891 (1987)). The time for filing
comments has expired, and the Board has considered
the application and all comments received in light of
the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1842(c)).2
Applicant is a nonoperating corporation formed for
the purpose of acquiring Bank. Upon consummation
of the proposal, Applicant will control total deposits of
approximately $240.3 million, representing less than
one percent of total deposits in commercial banking
organizations in the state, and would become the 42nd
largest commercial banking organization in the state.3
Based on all the facts of record, the Board believes
that consummation of the proposal would have no
significantly adverse effect on the concentration of
banking resources in Connecticut.
Further, because this proposal represents the restructuring of Bank's ownership into corporate form,
consummation of this proposal would not result in any
significantly adverse effect on existing or potential
competition, nor would it increase the concentration
of banking resources in any relevant banking market.
Thus, competitive factors are consistent with approval.
1. Applicant also would indirectly acquire Bank's noncontrolling
interests in 10 other depository organizations: 9.96 percent of Branford Savings Bank, Branford, Connecticut; 6.93 percent of Brooklyn
Savings Bank, Danielson, Connecticut; 5.29 percent of Central Bank
for Savings, Meriden, Connecticut; 9.99 percent of City Savings
Bank, Meriden, Connecticut; 6.3 percent of Derby Savings Bank,
Derby, Connecticut; 9.38 percent of Great Country Bank, Ansonia,
Connecticut; 9.98 percent of Peoples Savings Bank of New Britain,
New Britain, Connecticut; 9.52 percent of West Newton Savings
Bank, West Newton, Massachusetts; 9.99 percent of MidConn Bank,
Kensington, Connecticut; and 7.2 percent of West Mass Bankshares,
Greenfield, Massachusetts.
2. Comments were submitted by The Independent Insurance
Agents of America, The National Association of Casualty and Surety
Agents, National Association of Life Underwriters, National Association of Professional Insurance Agents, and National Association of
Surety Bond Producers (collectively, "Protestants"). Protestants
claim that the savings bank life insurance ("SBLI") activities conducted by bank are prohibited under section 4 of the Act. The Board
has considered these comments in conjunction with all the facts of
record, including the recently enacted Competitive Equality Banking
Act of 1987. Pub. L. No. 100-86 (enacted August 10, 1987)
("CEBA"). Section 101(d) of CEBA specifically authorizes the conduct of SBLI activities by a qualified savings bank subsidiary of a
savings bank holding company under the limitations set forth in
CEBA. The Board has determined that Bank is a qualified savings
bank under CEBA, and Applicant has committed to conduct Bank's
SBLI activities in accord with the limitations set forth in that act.
Accordingly, Bank may continue to engage in SBLI activities upon
consummation of the proposal.
3. Banking data are as of March 31, 1987.
873
The financial and managerial resources of Applicant
and Bank are consistent with approval. Considerations
relating to the convenience and needs of the communities to be served are also consistent with approval.
Based on the foregoing and all the facts of record,
the Board has determined that the application should
be and hereby is approved. The transaction shall not
be consummated before the thirtieth calendar day
following the effective date of this Order, or later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Boston
pursuant to delegated authority.
By order of the Board of Governors, effective
September 17, 1987.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, and Kelley.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
Yasuda Trust & Banking Company, Limited
Tokyo,Japan
Order Approving Formation of a Bank Holding
Company
Yasuda Trust & Banking Company, Limited, Tokyo,
Japan, has applied for the Board's approval under
section 3(a)(1) of the Bank Holding Company Act (the
"Act") (12 U.S.C. § 1842(a)(1)) to become a bank
holding company by acquiring 100 percent of the
voting shares of Yasuda Bank & Trust Company, New
York, New York ("Bank"), a de novo bank.
Notice of the application, affording opportunity for
interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the Act (12 U.S.C. § 1842(c)).
Applicant, with total unconsolidated assets equivalent to approximately $89.3 billion, ranks as the fifth
largest of eight trust banks in Japan.1 Worldwide,
Applicant ranks as the 25th largest bank. Applicant
operates 54 branches in Japan as well as seven foreign
branches and agencies and five foreign representative
offices. In addition, Applicant engages worldwide in
banking and nonbanking financial activities through
1. Banking data are as of March 31, 1987, and reflect the yen/dollar
exchange rate as of that date. Rankings are as of December 31, 1986.
874
Federal Reserve Bulletin • November 1987
four wholly owned subsidiaries located outside Japan.2
In the United States, Applicant operates a branch in
New York, New York, with total assets of $4.0 billion3
and an agency in Los Angeles, California, with total
assets of $2.0 billion. Applicant has selected New
York as its home state under the Board's Regulation K
(12 C.F.R. 211.22(b)). Bank will be located in Applicant's home state. Accordingly, the Board concludes
that the acquisition of Bank by Applicant is consistent
with Section 5 of the International Banking Act of 1978
(12 U.S.C. § 3103).
Bank, a de novo institution, is being organized as a
state-chartered nonmember bank. It will place primary
emphasis on providing trust-related services, and will
also provide a full range of commercial banking services in the Metropolitan New York—New Jersey
banking market.4 In view of the de novo status of Bank
and based upon the facts of record, the Board concludes that the proposed transaction will have no
significant adverse effects on existing or probable
future competition, and will not significantly increase
the concentration of resources in any relevant market.
Thus, competitive considerations are consistent with
approval of the application.
Section 3(c) of the Act requires the Board in every
case to consider the financial resources of the applicant organization and the bank or bank holding company to be acquired. The Board has previously stated
that it believes that the principles of national treatment
and competitive equity require, in general, that foreign
banks seeking to establish or acquire banking organizations in the United States should meet the same
general standards of strength, experience, and reputation as are required of domestic banking organizations
and that foreign banks be able to serve on a continuing
basis as a source of strength to their banking operations in the United States.5 The Board is also aware
that foreign banks operate outside the United States in
accordance with different regulatory and supervisory
requirements, accounting principles, asset quality
2. Yasuda Trust and Finance (Hong Kong) Limited (financial
services), Yasuda Trust Europe Limited (securities underwriting),
Yasuda Trust Finance (Switzerland) Ltd. (merchant banking), and
Yasuda Trust Australia Ltd. (banking).
3. Banking data for branch and agency are as of March 31, 1987.
4. The Metropolitan New York—New Jersey market is defined to
include New York City and Long Island, New York; Putnam,
Sullivan, Westchester, Rockland, and Orange Counties in New York;
Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris,
Ocean, Passaic, Somerset, Sussex, Union, and Warren Counties in
New Jersey; and portions of Fairfield County in Connecticut.
5. See Ljubljanska Banka-Associated Bank, 72 FEDERAL RESERVE
BULLETIN 489 (1986); The Mitsubishi Trust and Banking Corporation,
72 FEDERAL RESERVE BULLETIN 256 (1986); The Industrial Bank of
Japan, Ltd., 72 FEDERAL RESERVE BULLETIN 71 (1986); The Mitsubishi Bank, Limited, 70 FEDERAL RESERVE BULLETIN 518 (1984). See
also Policy Statement on Supervision and Regulation of ForeignBased Holding Companies, Federal Reserve Regulatory Service 1 4 835 (1979).
standards, and banking practices and traditions, and
that these differences make it difficult to compare the
capital positions of domestic and foreign banks.
The appropriate balancing of these concerns raises a
number of complex issues that the Board believes
require careful consideration and that the Board continues to have under review. In this regard, the Board
recently has announced a proposal to supplement its
consideration of capital adequacy with a risk-based
system that is simultaneously being proposed by the
Bank of England and the other domestic federal banking agencies. 52 Federal Register 9,304 (1987). The
Board considers this proposal an important step toward a more consistent and equitable international
norm for assessing capital adequacy. While the Board
will continue to apply a case-by-case approach during
the pendency of discussions regarding this proposal,
once such a system is adopted, applications by foreign
banks seeking to make acquisitions in the United
States would be judged in the context of such guidelines.
In the present instance, the primary capital ratio of
Applicant, as publicly reported, is well below the
Board's capital adequacy guidelines.6 In similar cases,
the Board has considered mitigating factors, including
adjustments to an applicant's capital to reflect differences in accounting and regulatory practices. After
certain adjustments to account for Japanese banking
and accounting practices, including consideration of a
modest portion of the unrealized appreciation in Applicant's portfolio of equity securities (after taking into
account possible fluctuations in valuation and the
effects of taxation), the capital ratio of Applicant more
nearly approximates U.S. standards. The Board has
also considered additional factors that mitigate its
concern. The Board has placed considerable emphasis
on the fact that Applicant will establish Bank de novo,
and that Bank will be strongly capitalized and small in
relation to Applicant. The Board notes further that
Applicant is in compliance with the capital and other
financial requirements of Japanese banking organizations, and that Applicant has given the Board certain
assurances regarding its capital.
The Board expects that Applicant will maintain
Bank as among the more strongly capitalized banking
organizations of comparable size in the United States.
Based on these and other facts of record, including
certain commitments made by Applicant, the Board
concludes that the financial and managerial factors are
consistent with approval of this application. Considerations relating to the convenience and needs of the
community to be served also are consistent with
approval.
6. Capital Adequacy Guidelines, 50 Federal Register 16,057 (1985),
7 1 FEDERAL RESERVE B U L L E T I N 4 4 5 ( 1 9 8 5 ) .
Legal Developments
Based upon the foregoing and other facts of record,
the Board has determined that consummation of the
transaction would be in the public interest and 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, and Bank shall be open for business
not later than six months after the effective date of this
Order. The latter two periods may be extended for
good cause by the Board or the Federal Reserve Bank
of New York, pursuant to delegated authority.
By order of the Board of Governors, effective
September 2, 1987.
Voting for this action: Chairman Greenspan and Governors
Johnson, Angell, and Kelley. Absent and not voting: Governors Seger and Heller.
JAMES MCAFEE
[SEAL]
Associate Secretary of the Board
Orders Issued Under Section 4 of the Bank
Holding Company Act
J.P. Morgan & Co. Incorporated
New York, New York
Order Approving Application to Engage in Limited
Underwriting and Dealing in Consumer-ReceivableRelated Securities
J.P. Morgan & Co. Incorporated ("Morgan"), New
York, New York, a bank holding company within the
meaning of the Bank Holding Company Act ("BHC
Act"), has applied for the Board's approval under
section 4(c)(8) of the BHC Act (12 U.S.C.
§ 1843(c)(8)) and section 225.23 of the Board's Regulation Y (12 C.F.R. § 225.23) to engage de novo through
J.P. Morgan Securities Inc. ("Company") in underwriting and dealing in, on a limited basis, consumerreceivable-related securities ("CRRs").
Company currently underwrites and deals in securities that state member banks are permitted to underwrite and deal in under the Glass-Steagall Act (hereinafter "bank-eligible securities"), as permitted by
section 225.25(b)(16) of Regulation Y (12 C.F.R.
§ 225.25(b)(16)). Company has also previously received
Board approval under section 4(c)(8) of the BHC Act
to underwrite and deal in commercial paper, 1-4
family mortgage-related securities and certain municipal revenue bonds (including "public ownership" industrial development bonds) (hereinafter "bank-ineligible securities"). Citicorp, J.P. Morgan & Co.
875
Incorporated and Bankers Trust New York Corporation, 73 FEDERAL RESERVE BULLETIN 473 (1987) ("Ci-
ticorp/Morgan!Bankers Trust"). The proposed new
underwriting and dealing activities would be provided
in addition to the above activities.
Morgan, with consolidated assets of $74.7 billion, is
the fifth largest banking organization in the nation. It
operates two subsidiary banks and engages directly
and through subsidiaries in a broad range of permissible nonbanking activities.1
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been published (52 Federal Register 27,583
(1987)). The time for filing comments has expired, and
the Board has considered the application and all
comments received in light of the factors set forth in
section 3(c) of the Act (12 U.S.C. § 1842(c)).
On July 14, the Board approved applications by
several bank holding companies to underwrite and
deal in CRRs through their bank-eligible securities
underwriting subsidiaries, limited to securities representing an interest in or backed by a diversified pool of
loans to or receivables from individuals, for the purpose of financing the purchase of consumer goods and
services (such as auto loans or personal credit card
accounts). Chemical New York Corporation, et al., 73
FEDERAL RESERVE BULLETIN 731 (1987). The Board
concluded that the underwriting subsidiaries would
not be "engaged principally" in underwriting and
dealing in securities within the meaning of section 20
of the Glass-Steagall Act2 provided they derived no
more than 5 percent of their total gross revenues from
underwriting and dealing in approved bank-ineligible
securities, including CRRs, over any two-year period
and their underwriting and dealing activities did not
exceed 5 percent of the market during the previous
calendar year for each particular type of security
involved.3 The Board further found that, subject to the
prudential framework of limitations established in the
Citicorp/Morgan/Bankers Trust and Chemical Orders
to address the potential for conflicts of interest, unsound banking practices or other adverse effects, the
proposed underwriting and dealing activities were so
closely related to banking as to be a proper incident
1. Banking data are as of June 30, 1987.
2. Section 20 of the Glass-Steagall Act (12 U.S.C. § 377) prohibits
the affiliation of a member bank with "any corporation . . . engaged
principally in the issue, flotation, underwriting, public sale, or distribution at wholesale or retail or through syndicate participation of
stocks, bonds, debentures, notes, or other securities . . . ."
3. As noted in the Board's Chemical Order, the Board believes it is
appropriate to treat CRRs and 1-4 family mortgage-related securities
as a single category for the time being, in view of the similarity
between CRRs and these mortgage-related securities. 73 FEDERAL
RESERVE B U L L E T I N a t 7 3 4 n . 5 .
876
Federal Reserve Bulletin • November 1987
thereto within the meaning of section 4(c)(8) of the
BHC Act.
For the reasons set forth in the Board's Citicorp/
Morgan/Bankers Trust and Chemical Orders, the
Board concludes that Applicant's proposal to engage
through Company in underwriting and dealing in CRRs
will not result in a violation of section 20 of the GlassSteagall Act and is closely related and a proper incident to banking within the meaning of section 4(c)(8) of
the BHC Act, provided Company's activities are conducted in accordance with the limitations established
in those Orders. Accordingly, the Board has determined to approve the application subject to all of the
terms and conditions established in the Citicorp/Morgan/Bankers Trust and Chemical Orders. The Board
hereby adopts and incorporates herein by reference
the reasoning and analysis contained in those Orders.
The Board's approval of this application extends
only to activities conducted by Company within the
limitations of the Citicorp/Morgan/Bankers Trust and
Chemical Orders, including the Board's reservation of
authority to establish additional limitations to ensure
that the subsidiary's activities are consistent with
safety and soundness, conflict of interest and other
relevant considerations under the BHC Act. Underwriting or dealing in CRRs in any manner other than as
approved in those Orders is not within the scope of the
Board's approval and is not authorized for Company.
The Board's determination is subject to all of the
conditions set forth in the Board's Regulation Y,
including those in sections 225.4(d) and 225.23(b), and
to the Board's authority to require modification or
termination of the activities of a bank holding company or any of its subsidiaries as the Board finds
necessary to assure compliance with, and to prevent
evasion of, the provisions of the BHC Act and the
Board's regulations and orders issued thereunder.
The Board notes that Title II of the Competitive
Equality Banking Act of 1987, enacted on August 10,
1987, prohibits the Board from authorizing a bank
holding company to engage in underwriting or dealing
in securities under the "engaged principally" provision of the Glass-Steagall Act, unless the effective
date of the Order is delayed until the expiration of a
moratorium time period established under the Act. 4
Accordingly, the Board has determined to delay the
effective date of this Order until the moratorium ends
on March 1, 1988.
In addition, the Board notes that the SIA has sought
judicial review in the U.S. Court of Appeals for the
Second Circuit of the Citicorp!Morgan!Bankers Trust
and the Chemical Orders to which this Order pertains.
4. Pub. L. No. 100-86, §§ 201-02 (1987).
The Board notes that the court has stayed the effectiveness of these Board Orders pending judicial review. In light of the pendency of this litigation, the
Board has determined that this Order should be stayed
for such time as the stay of the prior decisions is
effective.
By order of the Board of Governors, effective
September 8, 1987.
Voting for this action: Vice Chairman Johnson and Governors Seger, and Heller. Voting against this action: Governor
Angell. Absent and not voting: Chairman Greenspan and
Governor Kelley.
JAMES MCAFEE
[SEAL]
Associate Secretary of the Board
Dissenting Statement of Governor Angell
For the reasons set forth in my dissenting statement in
the Chemical Order, I regret I am unable to join the
majority in approving this application.
September 8, 1987
Merchants National Corporation
Indianapolis, Indiana
Order Regarding Insurance Agency Activities
Conducted By Banking Subsidiaries
Merchants National Corporation, Indianapolis, Indiana ("Merchants"), a bank holding company within
the meaning of the Bank Holding Company Act
("BHC Act") (12 U.S.C. § 1841 et seq.), has applied
under section 4(c)(8)(D) of the BHC Act (12 U.S.C.
§ 1843(c)(8)(D)) and section 225.25(b)(8)(iv) of Regulation Y (12 C.F.R. § 225.25(b)(8)(iv)), for permission
for its wholly owned subsidiary, the Anderson Banking Company, Anderson, Indiana ("Anderson
Bank"), to resume the conduct of certain insurance
agency activities authorized for state banks under
Indiana law.1 Alternatively, Merchants seeks a Board
determination that the nonbanking prohibitions of section 4 of the BHC Act do not apply to activities
conducted directly by banking subsidiaries of a bank
holding company, thereby permitting Anderson Bank
and another of Merchants's state bank subsidiaries,
Mid State Bank of Hendricks County, Danville, Indiana ("Mid State Bank"), to resume insurance agency
1. Ind. Code § 28-1-11-2 provides that "any bank or trust company shall have power . . . to solicit and write insurance as agent or
broker for any insurance company authorized to do business in this
state, other than a life insurance company."
Legal Developments
activities. In both cases the insurance agency activities
would be conducted directly by the banks and not
through subsidiaries of the banks.2
On October 29, 1986, the Board approved applications by Merchants under section 3 of the BHC Act to
acquire Anderson Bank and Mid State Bank. 72 FEDERAL RESERVE BULLETIN 838 (1986). The applications
had been protested by various insurance industry
trade groups on the ground that, as subsidiaries of a
bank holding company, the insurance agency activities
then being conducted by the banks pursuant to Indiana
law would be prohibited under section 4 of the BHC
Act, as amended by Title VI of the Garn-St Germain
Depository Institutions Act of 1982.3 As discussed
below, the Garn-St Germain Act amended section
4(c)(8) of the BHC Act to provide that, with seven
specific exceptions, insurance activities are not closely related to banking, thereby removing the Board's
discretion to authorize insurance activities as a permissible nonbanking activity for bank holding companies under the closely related to banking standard of
section 4(c)(8) of the BHC Act.
In response to the protests, Merchants committed
that, unless it received Board approval in the meantime for the banks to retain their insurance activities, it
would cause the banks to divest the insurance agency
activities within two years and, in the interim, to
refrain from the sale of any new insurance policies
except for the renewal of existing policies. Merchants
has now sought the Board's approval for these banks
to resume their insurance activities.
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been published (52 Federal Register 8,966
(1987)). The time for filing comments has expired, and
the Board has considered the application and all
comments received, including those of various insurance trade associations ("protestants").4
Protestants contend that the banks do not qualify
under any of the seven exemptions to the insurance
provisions in the Garn-St Germain Act and that,
therefore, they may not resume their insurance agency
activities. With respect to Merchants' alternative argu-
2. The record shows that Anderson Bank, prior to its acquisition by
Merchants, engaged directly in insurance agency activities since the
bank's incorporation in 1916, and that Mid State Bank acquired an
insurance agency in 1985. Prior to consummation of this proposal, Mid
State Bank will transfer the insurance activities of the subsidiary to
the bank itself, which will thereafter conduct the activities directly.
Anderson Bank and Mid State Bank would act as agent for a full line
of property and casualty coverage.
3. Pub. L. No. 97-320, codified at 12 U.S.C. § 1843(c)(8).
4. The Board has received comments protesting the application
from the National Association of Life Underwriters, National Association of Professional Insurance Agents, Independent Insurance
Agents of America, Inc., National Association of Casualty and Surety
Agents, and National Association of Surety Bond Producers.
877
ment, protestants contend that the terms and legislative history of the BHC Act, especially the legislative
history of Title VI of the Garn-St Germain Act,
indicate that the nonbanking and insurance provisions
of section 4 of the BHC Act apply to all bank holding
company activities, including activities conducted by a
subsidiary bank of the holding company. In protestants' view, a bank holding company's activities,
whether conducted directly by the holding company or
by any of its subsidiaries, including bank subsidiaries,
are limited by the terms of the BHC Act to "banking"
activities and activities permitted under the closelyrelated to banking standard in section 4(c)(8) of the
BHC Act (or one of the other specific exemptions in
the BHC Act, none of which are relevant here).
Protestants argue that because the Anderson and Mid
State Banks' insurance activities are not "banking"
and do not qualify under any of the insurance exemptions to section 4(c)(8) of the BHC Act as closely
related to banking, Merchants may not engage in the
activities through the banks.5
After considering the comments of all interested
parties and for the reasons set forth below, the Board
has determined to grant Merchants' request for relief
from its earlier commitments on the alternative
grounds advanced by Merchants, thereby permitting
Anderson Bank and Mid State Bank to resume the
insurance agency activities they terminated when they
were acquired by Merchants in 1986.
Initially, the Board has determined that Anderson
Bank and Mid State Bank do not qualify under section
4(c)(8)(D), the grandfather provision of the Garn-St
Germain Act (hereinafter "exemption D"), to engage
in insurance agency activities. Exemption D permits a
bank holding company or any of its subsidiaries to
engage in any insurance agency activity in which the
bank holding company or subsidiary was engaged on
May 1, 1982, subject to certain geographic and functional limitations. Exemption D, however, applies
only to entities that were bank holding companies or
5. Protestants also argue that Merchants should be bound by its
earlier commitments to divest the banks' insurance activities because
Merchants voluntarily offered the commitments with full knowledge
of their limitations and that, in any event, the commitments preclude
Merchants from arguing that the provisions of section 4 of the BHC
Act do not apply to the direct activities of the banks.
In the Board's view, however, the commitments contemplated that
Merchants could request Board relief from the commitments. While
couched in terms of seeking Board approval on the Board's application Form Y-4, the commitments did not represent a concession by
Merchants that section 4 applied to the direct activities of the banks.
Rather, the application would provide a forum for evaluating the
issues and arguments raised by the proposal apart from Merchants'
earlier application to acquire the banks. Accordingly, the Board does
not consider that the commitments limit either the right of Merchants
to request relief or the arguments Merchants may put forward in
support of that relief.
878
Federal Reserve Bulletin • November 1987
subsidiaries of bank holding companies on May 1,
1982. The record shows that on May 1, 1982, Anderson Bank was not a subsidiary of a bank holding
company and, therefore, does not qualify under Exemption D. Similarly, Mid State Bank does not qualify
under Exemption D because it did not commence
selling insurance until after the May 1, 1982 grandfather date.6
Accordingly, the Board has considered Merchants's
alternative grounds for relief. On the basis of the
record before it and the comments received, the Board
has determined that the direct insurance activities of
Anderson and Mid State Banks are not limited by the
nonbanking provisions of section 4 of the BHC Act or,
consequently, the insurance provisions of the Garn-St
Germain Act. 7 In the Board's view, the nonbanking
provisions of section 4, do not apply to limit the direct
activities of holding company banks, except where the
record demonstrates the type of evasion described in
the Citicorp!South Dakota case, 8 a situation not present in the instant case. 9 The Board believes this view
is consistent with the terms and purposes of the BHC
Act and the Board's prior interpretations and longstanding practice.
Section 4 of the BHC Act contains two provisions
that together limit the nonbanking activities and in-
6. Mid State Bank appears to qualify for the exemption provided in
section 4(c)(8)(C) of the BHC Act for insurance agency activities
conducted in a town of less than 5,000 inhabitants. In this application,
Merchants initially had proposed that Mid State Bank conduct the
insurance agency activities through a wholly owned subsidiary under
exemption C. Merchants, however, subsequently withdrew that request and amended the proposal to conduct the insurance activities
directly by Mid State Bank on the basis discussed below that the
nonbanking provisions of the BHC Act do not apply to the direct
activities of holding company banks.
7. As noted, Title VI of the Garn-St Germain Act does not establish
a prohibition on the conduct of insurance activities by bank holding
companies separate from or in addition to the general nonbanking
prohibitions of section 4 of the BHC Act. Rather, Title VI limits the
Board's discretion to authorize bank holding companies to conduct
these activities under the exception to the nonbanking provisions of
the Act for activities that the Board determines are closely related to
banking under section 4(c)(8) of the Act. Thus, the provisions of the
Garn-St Germain Act have no applicability where the nonbanking
provisions of section 4 of the Act do not apply.
8. 71 FEDERAL RESERVE BULLETIN 798 (1985). In that c a s e , the
Board found, based on the structure of the South Dakota statute, the
operating plans of Citicorp, and the fact that the bank would serve
primarily as an insurance subsidiary of Citicorp and would conduct
only insignificant banking activities, that the acquisition of the bank
was primarily, if not solely, for the purpose of enabling Citicorp to
engage through the bank in various insurance activities. The Board did
not address the question raised in this case regarding whether the
prohibitions of section 4 of the Act apply to the direct activities of
holding company banks where no evidence of evasion is presented.
9. In this case, the record does not show that the banks would be
operated by Merchants predominantly as insurance agencies or that
the acquisition of the banks is a device to enable the applicant to
engage in insurance activities. Rather, the record shows that the
insurance activities of the banks are incidental and small relative to
their banking operations.
vestments of bank holding companies. With respect to
investments, section 4 prohibits, with certain specific
exceptions, a bank holding company from acquiring or
retaining, directly or indirectly, voting shares of any
company except a bank.10 The principal exception to
this prohibition is for shares of companies engaged in
activities that the Board has determined are closely
related to banking. By its terms, this restriction in
section 4 does not apply to shares of a company which
is a bank. Thus, a bank holding company that controls
an institution that qualifies as a "bank" under the
definition in the Act is not required, in order to acquire
or retain the shares of the institution, to limit the
institution's activities to those permitted under the
closely related to banking standard of section 4 (or one
of the other limited exceptions in the BHC Act),
except where the record demonstrates an evasion of
the BHC Act, such as presented in the Citicorp/South
Dakota case. It is only companies that do not qualify
as "banks" under the BHC Act that must limit their
nonbanking activities to those permitted under the
closely related to banking standard in section 4(c)(8) of
the BHC Act (or qualify under some other exception)
in order to be acquired or retained directly or indirectly by a bank holding company.
In addition to the above limitation, section 4 of the
BHC Act provides that a bank holding company may
not "engage in any activities other than (A) those of
banking or of managing or controlling banks and other
subsidiaries authorized under the Act" and activities
the Board has determined to be closely related to
banking. 12 U . S . C . § 1843(a)(2). Protestants contend
that this provision applies not only to activities conducted directly by a bank holding company, but also to
activities conducted indirectly through any subsidiary
of the bank holding company, including a subsidiary
bank.
The Board has not, however, since enactment of the
BHC Act read this or any other portion of the nonbanking prohibitions of section 4 as applying to the
direct activities of holding company banks, nor, as
discussed below, does the legislative history of the
BHC Act provide any indication that Congress intended the Board to do so. Moreover, the structure of the
10. Section 4(a) of that Act provides:
Except as otherwise provided in this Act, no bank holding company
shall
(1). . . acquire direct or indirect ownership or control of any voting shares of
any company which is not a bank, or (2) . . . retain direct or indirect
ownership or control of any voting shares of any company which is not a bank
or bank holding company or engage in any activities other than (A) those of
banking or of managing or controlling banks and other subsidiaries authorized
under this A c t . . and (B) those permitted under paragraph (8) of subsection
(c) of this section [the closely-related to banking exception] . . . (emphasis
supplied) 12 U.S.C. § 1843(a).
Legal Developments
BHC Act indicates that this provision of section 4(a)(2)
was intended to apply to the activities of bank holding
companies themselves, many of which are operating
companies engaged directly in nonbanking activities as
well as in controlling banks and companies engaged in
permissible nonbanking activities.11 This reading harmonizes the provisions of section 4 of the BHC Act,
with one provision limiting the types of companies the
shares of which a bank holding company may acquire
and retain (banks and other companies authorized
under the BHC Act), and the second limiting in a
similar manner the activities in which the bank holding
company itself may engage to banking, managing and
controlling banks and authorized nonbank companies,
and activities closely related to banking.
The Board notes that, just as is the case with respect
to the BHC Act's limitations on the acquisition of
voting shares of any company, the limitation in section
4(a)(2) of the BHC Act on the activities of the bank
holding company also differentiates between banks
and other types of companies. Section 4(a)(2) of the
BHC Act permits a bank holding company to control
banks without any limitation on their activities, but
provides that a bank holding company may control
other companies only if their activities are authorized
under the closely related to banking or other nonbanking exceptions in the BHC Act.
The reading suggested by the protestants, on the
other hand, would make the provision restricting the
types of companies that may be controlled by bank
holding companies to banks and authorized nonbanks
superfluous. If a bank holding company is deemed to
be engaged in each activity in which a company it
controls is engaged, as the protestants suggest, the
other provision of section 4 prohibiting a bank holding
company from controlling nonbank companies unless
engaged in permissible activities would be unnecessary. Accordingly, the Board believes that the provision of section 4(a)(2) of the BHC Act limiting the
activities in which a bank holding company may
"engage" applies only to the activities of the bank
holding company itself, and that activities of subsidiaries of the bank holding company are regulated through
provisions limiting the companies that a bank holding
company may invest in and control to banks and other
companies engaged in activities permitted for bank
holding companies under the BHC Act.
This reading of the BHC Act is consistent with the
regulatory framework within which the BHC Act was
11. The portion of section 4 that authorizes a bank holding company to engage in "banking" is intended to provide for those few
situations that existed in 1956 in which the bank holding company was
itself a bank. See Heller, Federal Bank Holding Company Law,
§ 4.02(1).
879
designed to fit. At the time Congress enacted the BHC
Act in 1956, as today, banks were examined and
regulated by the federal or state bank chartering
authority. Congress enacted the BHC Act not to
address concerns regarding the activities permitted by
the chartering authority for national and state banks,
but rather to address the adverse effects Congress
discerned in the affiliation of banks with companies
engaged in nonbanking activities, directly or indirectly. Congress deliberately did not disturb the existing
bank regulatory framework, and intended for the OCC
and the state banking authorities to remain as the
primary regulatory authorities responsible for their
respective institutions, national banks and state-chartered banks.12 There is no indication in the BHC Act's
legislative history that the nonbanking provisions of
the BHC Act were intended to regulate the direct
activities of banks acquired by bank holding companies.13
For the foregoing reasons, the Board has determined that section 4 of the BHC Act does not limit the
sale of insurance directly by Anderson Bank and Mid
State Bank within the banks as proposed, and that the
banks may, therefore, insofar as the BHC Act is
12. See S. Rep. No. 1095, Part 2, 84th Cong., 2d Sess. 5 (1956). The
BHC Act does, however, provide the Board with certain supervisory
authority over holding company banks. For example, the Board may
examine any bank that is a subsidiary of a bank holding company
(12 U.S.C. § 1844(c)), and is required to evaluate the management and
financial condition of any bank that a bank holding company proposes
to acquire (12 U.S.C. § 1842(c)).
13. H. Rep. No. 387, 91st Cong., 1st Sess. 15 (1969); 115 Cong.
Rec., E 9016-17 (daily ed. October 28, 1969) (statement of Rep.
Brown); 115 Cong. Rec., H 10503 (daily ed. November 4, 1969)(statement of Rep. Stanton).5(7/^ to Amend the Bank Holding Company Act
of 1956: Hearings on S. 1052, S. 1211, S. 1664, S. 3823, andH.R. 6778
Before the Senate Comm. on Banking and Currency, 91st Cong., 2nd
Sess. 144, 157-158 (1970) (statement of Arthur Burns, Chairman of the
Federal Reserve Board) (hereinafter cited as 1970 Senate hearings);
1970 Senate Hearings at 179-81 (Colloquy between Senator Packwood
and Frank Willie, Chairman of the FDIC).
The Board has considered protestants' references to language from
the Senate Conference Report on Title VI of the Garn-St Germain Act
(S. Rep. No. 97-641, 97th Cong. 2d Sess. 91 (1982)), which states that
Title VI would prohibit "bank holding companies and their subsidiaries" from selling and underwriting insurance. In the Board's view, in
the context of the terms of the Act, the purpose of the Garn-St
Germain Act and the longstanding practice of not applying the
nonbanking provisions of the Act to the direct activities of holding
company banks, the reference in the report to subsidiaries was meant
to refer to nonbanking subsidiaries.
The Board notes that references in earlier reports on the Title VI
legislative history indicate that section 4 and thus the proposed
legislation would apply to bank holding companies and their "nonbank subsidiaries." S. Rep. No. 96-923, 96th Cong., 2d Sess. 2 (1980);
S. Rep. No. 97-536, 97th Cong., 2d Sess. 36, 38-40 (1982). See also,
H. Rep. No. 96-845, 96th Cong., 2d Sess. 2-3 (1980) ("the BHC Act
generally prohibits a bank holding company from owning the shares of
any company that is not a bank.") There is no indication of any
Congressional intent in the Title VI amendments to section 4(c)(8) of
the Act to extend the coverage of the nonbanking prohibitions of
section 4(a) of the Act to the direct activities of holding company
banks.
880
Federal Reserve Bulletin • November 1987
concerned, resume within the banks the sale of insurance as permitted under Indiana law.
The Board notes that its views regarding the coverage of section 4 have not been the same where the
insurance activities are conducted by companies controlled by holding company banks. Under the BHC
Act, shares of a company held by a holding company
bank are deemed to be indirectly held by the parent
holding company (12 U.S.C. § 1841(g)) and, therefore,
under the terms of the Act, their ownership or control
by a bank holding company must qualify under the
closely related to banking or one of the other exceptions in section 4 of the BHC Act. 14 The Board
adopted this view in 1956,15 which was confirmed by
the Congress in 1966 with the enactment of section
2(g)(1) of the BHC Act. 16
In this regard, however, in 1971 the Board adopted
section 225.22(d)(2) of Regulation Y (formerly section
225.4(e)), which authorizes a state bank owned by a
bank holding company to acquire and retain all (but
not less than all) of the voting shares of a company,
without Board approval under the BHC Act, so long as
the company engages solely in activities the parent
bank may conduct directly and at locations at which
the bank could conduct the activities. 12 C.F.R.
225.22(d)(2).17 The Board adopted this regulation in
order to permit holding company state banks to compete on equal footing with state banks that are not in a
holding company system and in the absence of evidence that such acquisitions were resulting in evasions
of the BHC Act. At that time, however, the Board
stated that it would review the merits of the decision
from time to time in light of its experience in administering the Act. 18
14. Similarly, a bank holding company is deemed to control any
company that is controlled by the holding company's subsidiaries.
12 U.S.C. § 1841(a)(2). Under section 4(a)(2) of the BHC Act, in order
for the holding company to maintain control of such a company, the
company must be a "bank" or a company whose activities qualify
under one of the Act's nonbanking exceptions. 12 U.S.C.
§ 1843(a)(2).
15. 12 C.F.R. § 225.101. See Security Pacific Corporation, 72
FEDERAL RESERVE B U L L E T I N 8 0 0 , 8 0 1 ( 1 9 8 6 ) ; Citicorp
RESERVE BULLETIN 7 8 9 , 7 9 1 n . 6 ( 1 9 8 5 ) .
71 FEDERAL
16. S. Rep. No. 1179, 89th Cong., 2d Sess. 8 (1966). See also 1970
Senate Hearings at 198 (Statement of William B. Camp, U.S. Comptroller of the Currency) ("There is no legal doubt that any acquisition
by the national bank subsidiary would be an indirect acquisition by the
one-bank holding company.")
17. Section 225.22(d)(1) of Regulation Y authorizes a national bank
to acquire and retain voting shares of a company in accordance with
the rules of the Comptroller of the Currency. 12 C.F.R. 225.22(a)(1).
18. The Board stated:
The Board should not at this time apply the [nonbanking] restrictions
[of the BHC Act] to subsidiaries of banks. This decision is believed
warranted by considerations of equity between banks that are and are
not members of bank holding companies and by the absence of
evidence that acquisition by holding company banks are resulting in
evasions of the purpose of the Act. The merits of this decision will be
reviewed by the Board from time to time in light of its experience in
administering the Act. (36 Federal Register 9292 (May 22, 1971)).
In December 1986, in light of the trend to expand
significantly the real estate development powers of
state banks, the Board asked for comment on whether
to amend this regulation to prohibit holding company
banks from acquiring or retaining voting shares or
control of companies engaged in real estate development activities or to limit such acquisitions to those
situations which the Board proposed to permit for
bank holding companies. 52 Federal Register 543, 551
(1987). In its request, the Board noted the questions
raised by commenters in response to an earlier request
for comment on the real estate activities of bank
holding companies concerning the coverage of the
nonbanking provisions of section 4 of the BHC Act to
a wholly owned subsidiary of a holding company state
bank that engages only in activities the bank may
conduct directly. The Board summarized the arguments advanced by commenters in support of and in
opposition to the view that the nonbanking provisons
of the BHC Act applied to such subsidiaries, and
indicated it would consider any further comments in
connection with the rulemaking on the real estate
investment proposal.
The Board received numerous comments on this
issue, including comments from the protestants in this
case reiterating the views they have advanced in this
and other cases regarding the coverage of section 4 of
the BHC Act to holding company state banks and their
subsidiaries. As the Board has previously stated, the
Board intends to decide the issue of the applicability of
the nonbanking provisions of the BHC Act to wholly
owned subsidiaries of holding company state banks in
connection with the real estate investment rulemaking
in which it has had the benefit of extensive public
participation. The Board intends to complete that
rulemaking within the next six months, or by March 1,
1988.
Effect of the Competitive Equality Banking Act of 1987
Title II of the Competitive Equality Banking Act of
1987 ("CEBA") prohibits the Board, except in certain
limited circumstances not relevant here, from approving from March 6, 1987, until March 1, 1988, the
acquisition by a bank holding company of any company, including a state-chartered bank, unless the bank
holding company agrees to limit the Insurance activities of the company in the United States to those
permitted for bank holding companies under section
4(c)(8) of the BHC Act. 19 As protestants point out, the
Conference Report on CEBA states that this provision
was intended to close the so-called "South Dakota
19. Pub. L. No. 100-86, section 201(b)(4), 101 Stat. 552, 581-3
(1987), to be codified at 12 U.S.C. § 1841 note.
Legal Developments
loophole" during the moratorium period.20 Under the
South Dakota loophole, a bank holding company
would acquire a state bank for the purpose of enabling
the bank holding company to engage in insurance
activities through the state bank.21 This section of Title
II, however, by its terms only prohibits Board approval for acquisitions during moratorium. In this case, the
Board approved Merchants' acquisition of the banks
in question in October 1986, prior to the commencement of the moratorium on March 6, 1987.
Title II also imposes a moratorium on any Federal
banking agency action — whether by rule, regulation,
or order — that "would have the effect of increasing
the insurance powers" of banks or bank holding
companies or of banking or nonbanking subsidiaries
thereof, either with respect to specific banks or bank
holding companies, beyond the insurance powers permitted for bank holding companies under section
4(c)(8) of the BHC Act, unless the effective date of the
action is delayed until the expiration of the moratorium.22 The Board believes that this provision of Title II
also would not prohibit the Board's grant of the relief
sought by Merchants in this case because that action
would not have the effect of increasing the "insurance
powers" of the banks. The banks already have these
powers by virtue of state law and those powers are not
and have never been limited by the BHC Act.
In the Board's view, the terms and structure of Title
II demonstrate that this provision was directed at
situations where a federal banking agency proposes to
authorize additional insurance powers pursuant to
statutory authority administered by the agency. In this
regard, section 202 of Title II indicates that the Title II
moratorium provisions were directed at a federal
banking agency's exercise of "its legal authority . . .
to expand the securities, insurance, or real estate
powers of banks or bank holding companies that are
subject to the moratorium established under section
201 . . ." 101 Stat, at 584.
As discussed above, the Board's decision in this
case does not involve the exercise of any authority it
has under the BHC Act to permit or to prohibit the
conduct by banks or bank holding companies of insurance activities. The Board's action merely represents
a reaffirmation of its consistent view that the nonbanking prohibitions of section 4 of the BHC Act do not
apply to limit the direct activities or powers of holding
company banks, except in cases of evasion. The
commitments offered by Merchants in connection with
its acquisition of the banks to suspend their insurance
20. H. Rep. No. 100-261, 100th Cong., 1st Sess. 148 (1987).
21. See, e.g., Citicorp!South Dakota, supra.
22. Sections 201(b)(3) and 202, 101 Stat, at 582 and 584.
881
activities pending Board resolution of the questions
raised by protestants were not required by the BHC
Act, but were provided only to expedite consideration
of the bank applications. The Board's decision to grant
relief from the commitments, thus, does not constitute
the authorization of any activity under the BHC Act.
In this regard, the Board notes that Title II provides
that the existence of the moratorium shall not be
construed "to increase, decrease, or affect in any way
the authority of State-chartered bank subsidiaries of
bank holding companies with respect to insurance
activities."23 Title II also provides that it shall not be
"construed to increase or reduce the insurance authority of bank holding companies or banking or nonbanking subsidiaries thereof or of national banks under
current law." 24
For the foregoing reasons, the Board has determined not to delay the effective date of its decision
granting the relief requested by Merchants until the
moratorium established by Title II of CEBA expires
on March 1, 1988.
By order of the Board of Governors, effective
September 10, 1987.
Voting for this action: Chairman Greenspan and Governors
Johnson, Angell, and Heller. Absent and not voting: Governors Seger and Kelley.
JAMES MCAFEE
[SEAL]
Associate Secretary of the Board
Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
First Interstate Bancorp
Los Angeles, California
Order Approving Acquisition of a Bank Holding
Company
First Interstate Bancorp, Los Angeles, California, a
bank holding company within the meaning of the Bank
Holding Company Act (12 U.S.C. § 1841 et seq.) (the
"Act"), has applied for the Board's approval under
section 3 of the Act (12 U.S.C. § 1842) to acquire
Allied Bancshares, Inc., Houston, Texas ("Company"), and thereby indirectly to acquire the bank
subsidiaries of Company listed in Appendix A to this
23. Section 201(e)(2), 101 Stat, at 583.
24. Section 201(d), 101 Stat, at 583.
882
Federal Reserve Bulletin • November 1987
Order.1 Applicant also has applied under section
4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and section 225.23(a)(2) of Regulation Y (12 C.F.R.
§ 225.23(a)(2)) to acquire the nonbanking subsidiaries
of Company.2
Notice of the applications, affording opportunity for
interested persons to submit comments, has been
published (52 Federal Register 27,056 (1987)). The
time for filing comments has expired, and the Board
has considered the applications and all comments
received in light of the factors set forth in sections 3(c)
and 4(c)(8) of the Act.
Applicant is the fourth largest commercial banking
organization in California with deposits in California of
approximately $14.8 billion, representing approximately 7.6 percent of the total deposits in commercial
banks in that state.3 Company is the fifth largest
commercial banking organization in Texas with domestic deposits of approximately $8.1 billion, representing approximately 5.3 percent of the total deposits
in commercial banks in Texas.
Section 3(d) of the Act, 12 U.S.C. § 1842(d), the
Douglas Amendment, prohibits the Board from approving an application by a bank holding company to
acquire a bank located outside of the bank holding
company's home state, unless the acquisition is "specifically authorized by the statute laws of the state in
which such bank is located, by language to that effect
and not merely by implication."4
Effective January 1, 1987, Texas enacted an interstate banking statute that permits, subject to certain
limitations, out-of-state bank holding companies, such
as Applicant, to acquire established Texas banks and
1. Applicant will acquire Company through a merger of Company
with First Interstate Bancorp of Texas, Inc., Los Angeles, California
("FI-Texas"), a wholly owned subsidiary of Applicant organized by
Applicant to effect the acquisition. In connection with this application,
FI-Texas has applied to become a bank holding company and acquire
the banking and nonbanking subsidiaries of Company.
2. These are: Allied Bancshares Brokerage, Inc., Houston, Texas;
Allied Bancshares Leasing, Inc., Houston, Texas; Allied Life Insurance Company of Texas, Houston, Texas; and Allied Trust Company,
Houston, Texas.
By separate application, Applicant has applied under section
4(c)(8)(D) to acquire Allied Agency, Inc., Houston, Texas, a company
engaged in acting as managing general agent for the vendor single
interest programs of the subsidiary banks of Company. This application will be acted on separately by the Board.
3. Data are as of June 30, 1986. Applicant also operates banks in the
states of Oregon, Washington, Arizona, Nevada, Colorado, Utah,
Idaho, New Mexico, Wyoming, Montana, and Alaska.
4. A bank holding company's home state for purposes of the
Douglas Amendment is that state in which the total deposits of its
banking subsidiaries were largest on July 1, 1966, or on the date it
became a bank holding company, whichever date is later. 12 U.S.C.
§ 1842(d).
bank holding companies.5 The Texas Banking Department has informed the Board that it has no objection to
this proposal. Based on its review of the record, the
Board has determined that the proposed acquisition is
specifically authorized by the statute laws of Texas
and thus that Board approval of the application is not
prohibited by the Douglas Amendment.
The Board has considered the effects of the proposal
upon competition in the relevant banking markets.
Because Applicant does not operate a bank in any
market in which Company operates a banking subsidiary, consummation of the proposal would not eliminate significant existing competition in any relevant
banking market. Consummation of the proposed transaction also would not have any significant adverse
effect on probable future competition in any relevant
banking market.
In evaluating these applications, the Board has
considered the financial resources of Applicant and
the effect on those resources of the proposed acquisition. The Board has stated and continues to believe
that capital adequacy is an especially important factor
in the analysis of bank holding company proposals,
particularly in transactions, such as this, involving the
acquisition of a large organization experiencing financial difficulties.
In this regard, the Board expects that banking
organizations experiencing substantial growth internally and by acquisition, such as Applicant, should
maintain a strong capital position substantially above
the minimum levels specified in the Board's Capital
Adequacy Guidelines.6 The Board will carefully analyze the effect of expansion proposals on the preservation or achievement of such capital positions.
This acquisition has been structured as an exchange
of shares, and Applicant will not incur any debt to
effect the proposal. Nevertheless, the proposal will
reduce Applicant's tangible primary capital ratio, although Applicant's capital position upon consummation will continue to be well above the minimum
requirements under the Board's Capital Guidelines.
The Board also notes that Applicant's existing and
projected consolidated earnings and parent cash flow
appear sufficient to provide flexibility, if pro forma
earnings are lower than anticipated. Further, the
5. Tex. Rev. Civ. Stat. Ann. art. 342-916 (Vernon 1986). The Board
previously has approved the acquisition of a Texas bank by an out-ofstate bank holding company. State First Financial Corporation, 73
FEDERAL RESERVE BULLETIN 307 (1987); Chemical New York
ration , 73 FEDERAL RESERVE BULLETIN 378 (1987).
6. Capital Adequacy Guidelines, 50 Federal
Register
Corpo-
16,057,
16,066-67 (April 24, 1985) (71 FEDERAL RESERVE BULLETIN 445
(1985)); National
743, 746 (1984).
City Corporation,
70 FEDERAL RESERVE BULLETIN
Legal Developments
Board notes that the proposed acquisition will
strengthen the condition of Company not only by the
removal from Company of a substantial portion of
Company's nonperforming loans but also by granting
greater access for Company to sources of funding and
expanded banking services.
After a review of Applicant's proposal in light of
Company's financial condition and on the basis of the
above considerations and Applicant's continuing steps
to strengthen its capital position, the Board concludes
that financial factors are consistent with approval of
the proposal. The Board notes that the proposed
transaction represents another significant step in the
process of resolving the financial difficulties associated with the weak Southwestern regional economy.
The Board also finds that the managerial resources
of Applicant, Company, and their respective banking
subsidiaries are satisfactory. In reaching this decision,
the Board has considered certain violations by Applicant and Company of the Currency and Foreign Transactions Reporting Act ("CFTRA"). 7 The Board notes
that Applicant and Company have now established
comprehensive policies and procedures to ensure future compliance with the CFTRA. Examiners from the
primary regulators of the banks involved have reviewed the sufficiency of these compliance procedures
and their efficacy in correcting the deficiencies. The
Board has also consulted with appropriate enforcement agencies, and has considered Applicant's and
Company's past record of compliance with the law.
In considering the convenience and needs of the
communities to be served, the Board has taken into
account the records of the subsidiary banks of Applicant and Company under the Community Reinvestment Act ("CRA"), 12 U.S.C. § 2901 et seq* The
Board has received comments from a number of
groups regarding the CRA records of the subsidiary
banks of both Applicant and Company.9 The protes-
7. 31 U.S.C. § 5311 et seq., 31 C.F.R. § 103.
8. The CRA requires the Board, in its evaluation of a bank holding
company application, to take into account the record of applicant's
subsidiary banks in meeting the credit needs of the entire community,
including the low- and moderate-income neighborhoods, as reflected
in the examinations by the bank's primary federal banking regulator.
12 U.S.C. § 2903.
9. The Fresno Organizing Project, Fresno, California, the National
Training and Information Center, Chicago, Illinois, and the Pomona
Valley branch of the N.A.A.C.P., Pomona, California, have protested
the CRA performance of First Interstate Bank of California, in West
Fresno, Los Angeles and San Diego, and Pomona, respectively. (The
Pomona Valley branch of the N.A.A.C.P. withdrew its protest on
September 24, 1987.) Salt Lake Citizens Congress, Salt Lake City,
Utah, has protested the CRA performance of First Interstate Bank of
Utah, N.A.; South End Seattle Community Organization, Seattle,
Washington, has protested the CRA performance of First Interstate
Bank of Washington, N.A.; Montana Peoples Action, Great Falls,
Montana, has protested the CRA performance of First Interstate Bank
of Great Falls, Montana; and the Oklahoma City Reinvestment
883
tants generally allege that certain of Applicant's and
Company's subsidiary banks have failed to meet the
credit needs of the low- and moderate-income areas in
the communities the banks serve. In addition, some of
the protestants allege that the banks involved do not
meet the credit needs of minority areas in the communities they serve. Further, the protestants allege that
the banks are not making special efforts, such as
communication, marketing, or special programs, to
ascertain or to meet the credit needs of these communities.
In accordance with the Board's practice and procedure for handling protested applications,10 the Federal
Reserve Banks of San Francisco, Kansas City, Minneapolis, and Dallas assisted in arranging meetings between the parties in the majority of the protests to
clarify the issues under the CRA and to provide a
forum to resolve the concerns raised by the protests.11
The parties, however, were unable to come to a
resolution of their differences.
Initially, the Board notes that Applicant's subsidiary
banks have received satisfactory CRA assessments
from their primary supervisory agencies. Applicant
has met with all but one of the groups which protested
its applications and has offered to address many of the
concerns raised by the protests.12
In addition, on September 18, 1987, Applicant
adopted a corporate CRA Policy Statement which
establishes a committee of members from Applicant's
Managing Committee that will review the CRA programs and practices of its subsidiary banks and report
to Applicant's Chairman on that performance. As a
subsidiary of Applicant, Company would be subject to
Applicant's CRA program. In response to the public
comments as well as supervisory comments regarding
Company's CRA performance (made in connection
Alliance, Oklahoma City, Oklahoma, has protested the CRA performance of First Interstate Bank of Oklahoma, N.A. The Houston
Reinvestment Alliance and the Houston branch of the N.A.A.C.P.,
both of Houston, Texas, have protested the CRA performance of
Allied Bank of Texas, Houston, Texas. South Dallas/Fair Park Inner
City Development Corporation, Dallas, Texas, has protested the CRA
performance of Allied Bank of Dallas and Allied Bank of OakclifiF,
both in Texas.
10. See 12 C.F.R. § 262.25(c).
11. A private meeting was not held in the NTIC protest.
12. For example, with regard to a protest concerning Fresno,
California, First Interstate Bank of California has indicated to the
Federal Reserve Bank of San Francisco that the bank will advertise in
local media and conduct community seminars to raise the awareness
in the West Fresno area of the bank's credit services, actively seek
small business loans, continue to be involved in and support community activities that assist low income residents of Fresno, and continue
dialogue and discussions with community groups in Fresno. Further,
First Interstate of California has recently approved a $1 million grant
to Local Initiatives Support Corporation ("LISC") and has reached a
substantial oral agreement with the Housing Development Department of the City of Fresno on a block grant program for low- and
moderate-income housing.
884
Federal Reserve Bulletin • November 1987
with a recent examination), Company, on September
16, 1987, also adopted its own broad corporate CRA
Policy Statement and Affirmative Action Plan. Under
this program, Company commits to, among other
things, emphasize and devote special efforts to making
and marketing in low- and moderate-income areas
housing and small business loans, and consistent with
safe and sound banking practices, to endeavor to
increase the number and dollar amount of loans which
previously have been made in those areas, including in
particular housing-related and small business loans.
Company will also continue to offer basic banking
services and to waive, consistent with safe and sound
banking practices, the minimum balance requirement
to open such accounts for depositors from low- and
moderate-income areas.
Under the CRA, the Board is required to take the
CRA record of an applicant's subsidiary bank into
account as part of the Board's assessment of the
convenience and needs of the community in acting on
certain bank holding company expansion proposals. In
this case, the Board has evaluated Applicant's record
under the CRA, as reflected in the examinations of its
subsidiary banks as well as those of Company, the
comments of interested parties, Applicant's responses
to these comments, and the adoption by Applicant and
Company of CRA Policy Statements as outlined
above. The Board's review indicates that Company
needs to improve its CRA performance and that there
are areas in which certain of Applicant's subsidiary
banks could strengthen their performance. As noted,
Company has adopted a program which will place
special emphasis on increasing its lending in low- and
moderate-income areas. Applicant has also adopted a
CRA program and its subsidiary banks have indicated
they would initiate certain measures in response to the
public comments. In order to monitor implementation
of Applicant's and Company's CRA programs, the
Board requires that Applicant submit to the Federal
Reserve Bank of San Francisco within 6 months of
consummation of the acquisition and semiannually
thereafter, as well as where requested by the System
in connection with future expansion applications by
Applicant, a report on the progress of its subsidiary
banks in implementing the policies outlined in Applicant's CRA Policy Statement and that of Company.13
These reports should include, for example, descriptions of actions taken by Applicant's and Company's
subsidiary banks in determining and helping to meet
community credit needs, particularly the credit needs
of consumers and small businesses in low- and moderate-income areas.
13. The reports must be filed until such time as the Reserve Bank is
satisfied that Applicant's policy has been successfully implemented.
In evaluating the convenience and needs factors in
this case, the Board has considered as the overriding
factor in this case the fact that the proposal will
provide the capital and financial support to Company
that should enable its subsidiary banks to continue to
serve their customers in numerous banking markets in
Texas. In view of this substantial benefit to the convenience and needs of the many Texas communities
served by Company and the CRA programs adopted
by Applicant and Company, as well as the overall
satisfactory CRA record of Applicant's existing subsidiary banks, the Board concludes that convenience
and needs considerations in this case are consistent
with approval of the application.14
As indicated earlier, Applicant also has applied,
pursuant to section 4(c)(8), to acquire certain nonbanking subsidiaries of Company. Both Applicant and
Company have nonbanking subsidiaries that offer discount brokerage services and credit life, accident and
health insurance. In view of the small market shares of
Applicant and Company in those geographic areas in
which they compete for these services, the Board
concludes that the proposal would not have any significant adverse effect on existing or probable future
competition in any relevant market.
There is no evidence in the record to indicate that
approval of this proposal would result in decreased
competition in other areas or in undue concentration
of resources, unfair competition, conflicts of interests,
unsound banking practices, or other adverse effects on
the public interest. Accordingly, the Board has determined that the balance of public interest factors it must
consider under section 4(c)(8) of the Act is favorable
and consistent with approval of the applications to
acquire Company's nonbanking subsidiaries and activities.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. The acquisition of Company shall not be consummated before the thirtieth
14. A majority of the protestants also requested that the Board
order a public meeting. Under the Board's rules, the Board may hold a
public meeting on an application to clarify factual issues related to the
application and to provide an opportunity for testimony, if appropriate. 12 U.S.C. § 262.25(d). In this case, the Reserve Banks have
arranged private meetings for this purpose. Moreover, in view of the
Board's finding regarding the substantial benefits to the convenience
and needs of the public from this proposal and the other facts of
record, the Board has determined that a public meeting would serve
no useful purpose. Accordingly, the requests for public meetings are
denied.
Some of the protestants also requested that the Board order a
hearing. Although section 3(b) of the Act does not require a formal
hearing in this instance, the Board may, in any case, order an informal
or formal hearing. In light of all of the facts of record, the Board has
determined that a hearing would serve no useful purpose. Accordingly, the requests for a hearing are denied.
Legal Developments
calendar day following the effective date of this Order,
or later than three months after the effective date of
this Order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
San Francisco, acting pursuant to delegated authority.
The determinations as to Applicant's nonbanking activities are subject to all of the conditions contained in
Regulation Y, including those in sections 225.4(d) and
225.23(b)(3) (12 C.F.R. §§ 225.4(d) and 225.23(b)(3)),
and to the Board's authority to require such modification or termination of the activities of a holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance with the provisions
and purposes of the Act and the Board's regulations
and orders issued thereunder, or to prevent evasion
thereof.
By order of the Board of Governors, effective
September 28, 1987.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, and Angell. Abstaining from this action:
Governor Kelley. Absent and not voting: Governor Heller.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
Appendix A
Allied Bank Austin, Austin, Texas; Allied Bank North
Austin, Austin, Texas; Allied Bank South Austin,
Austin, Texas; Allied Bank of Marble Falls, Marble
Falls, Texas; Allied Bank Beaumont, N.A., Beaumont, Texas; Allied Merchants Bank, Port Arthur,
Texas; Allied Nederland Bank, Port Arthur, Texas;
Allied American Bank of Dallas, N.A., Dallas, Texas;
Allied Bank Arlington, Arlington, Texas; Allied Bank
Bedford, Bedford, Texas; Allied Bank Cedar Hill,
N.A., Cedar Hill, Texas; Allied Bank of Dallas, Dallas, Texas; Allied First National Bank of Mesquite,
Mesquite, Texas; Allied Bank Fort Worth, Fort
Worth, Texas; Allied Bank Irving, Irving, Texas;
Allied Bank Keller, N.A., Keller, Texas; Allied Bank
Mockingbird, Dallas, Texas; Allied Bank North Central, N.A., Dallas, Texas; Allied Northeast Bank,
N.A., Fort Worth, Texas; Allied Bank Oak Cliff,
Dallas, Texas; Allied Bank Piano, N.A., Piano, Texas;
Allied Bank Waxahachie, N.A., Waxahachie, Texas;
Allied Addicks Bank, Houston, Texas; Allied Beltway
Bank, Houston, Texas; Allied Champions Bank,
Houston, Texas; Allied Conroe Bank, Conroe, Texas;
Allied Cypress Bank, Houston, Texas; Allied Deer
Park Bank, Deer Park, Texas; Allied Fairbanks Bank,
Houston, Texas; Allied First National Bank, Angleton, Texas; Allied Bank Gulf Freeway, Houston,
885
Texas; Allied Bank-Interstate 10, Houston, Texas;
Allied Jetero Bank, Houston, Texas; Allied Bank
Memorial, Houston, Texas; Allied Mercantile Bank,
Houston, Texas; Allied Mission Bend Bank, Houston,
Texas; Allied Bank Missouri City, Missouri City,
Texas; Allied Bank North Belt, N.A., Houston, Texas; Allied Pasadena National Bank, Pasadena, Texas;
Allied Seabrook Bank, Seabrook, Texas; Allied Bank
Southwest Freeway, Houston, Texas; Allied Spring
Bank, Spring, Texas; Allied Bank of Texas, Houston,
Texas; Allied Bank West, Houston, Texas; Allied
Bank Longview, Longview, Texas; Allied Marshall
Bank, Marshall, Texas; Allied American Bank of San
Antonio, San Antonio, Texas; Allied Bank Northwest,
N.A., San Antonio, Texas; Allied Live Oak Bank,
Rockport, Texas; and Allied Texas Bank, Jacksonville, Texas.
People's Mutual Holdings
Bridgeport, Connecticut
Order Approving Applications to Become a Bank
Holding Company and to Engage in Certain
Nonbanking Activities
People's Mutual Holdings, Bridgeport, Connecticut,
has applied under section 3(a)(1) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1842(a)(1)) (the
"BHC Act") to become a bank holding company by
acquiring People's Bank, Bridgeport, Connecticut
("New Bank"), a proposed state-chartered stock savings bank to be insured by the Federal Deposit Insurance Corporation ("FDIC"). 1 The proposal represents
a reorganization under which People's Bank, Bridgeport, Connecticut, an existing FDIC-insured, state
chartered mutual savings bank, will transform itself
into a mutual bank holding company. The proposal
will be effected by People's Bank forming a stock
savings bank, New Bank, to which it will transfer
substantially all of People's Bank's assets and liabil-
1. Under the BHC Act, as amended by the Competitive Equality
Banking Act of 1987 ("CEBA"), the term "bank" for the purposes of
the BHC Act includes an insured bank as defined in section 3(h) of the
Federal Deposit Insurance Act. Competitive Equality Banking Act of
1987, Pub. L. No. 100-86, 101 Stat. 552, 554 (1987) (to be codified at
12 U.S.C. 1841(c)). Bank qualifies as an insured bank under that
section. Accordingly, Bank is a "bank" for purposes of the BHC Act.
In addition, as authorized under CEBA Applicant has not filed an
application with the Federal Home Loan Bank Board for Bank to be
treated as an "insured institution" under the National Housing Act
and, thereby, no longer be regulated under the BHC Act. Competitive
Equality Banking Act of 1987, Pub. L. No. 100-86, 101 Stat. 552, 574
(1987) (to be codified at 12 U.S.C. 1730a).
886
Federal Reserve Bulletin • November 1987
ities. New Bank will be controlled by People's Bank,
which will be renamed People's Mutual Holdings.
Applicant has also applied under section 4(c)(8) of
the BHC Act (12 U.S.C. § 1843(c)(8)) and section
225.23 of the Board's Regulation Y (12 C.F.R.
§ 225.23) for New Bank to retain Guardian Federal
Savings & Loan Association, Bridgeport, Connecticut, which had been acquired in a supervisory acquisition. In addition, Applicant has applied for New Bank
to retain a 33.3 percent ownership interest in Cadre,
Inc., Avon, Connecticut. This company engages in
data processing activities that have been determined
by the Board to be permissible for bank holding
companies under section 225.25(b)(7) of the Board's
Regulation Y (12 C.F.R. § 225.25(b)(7)).
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
BHC Act (52 Federal Register 23,891 (1987)). The time
for filing comments and views has expired and the
Board has considered the applications and all comments received, including comments in opposition to
the application from certain insurance industry
groups,2 in light of the factors set forth in section 3(c)
of the BHC Act (12 U.S.C. § 1842(c)) and the considerations specified in section 4(c)(8) of the BHC Act.
People's Bank, with $4.4 billion in deposits, ranks
third in the state of Connecticut among bank and thrift
institutions, controlling 7.8 percent of total deposits in
banks and thrifts in the state.3 Upon consummation of
this proposal, Applicant would continue to be the third
largest depository institution among banks and thrifts
in the state, with no change in its market share or
deposit size. Thus, consummation of this proposal
would have no effect on the concentration of banking
resources in Connecticut.
People's Bank operates in the Bridgeport, Connecticut, banking market,4 where it is the largest of 28 bank
and thrift institutions in the market and controls $2.1
billion in deposits, which represents 33.1 percent of
the total deposits in banks and thrifts in the market.5 In
view of the fact that this proposal represents a reorganization of existing ownership interests, the Board
concludes that consummation of this proposal would
2. The Independent Insurance Agents of America, Inc., National
Association of Casualty & Surety Agents, National Association of
Life Underwriters, National Association of Professional Insurance
Agents and National Association of Surety Bond Producers (' 'Protestants") have submitted comments protesting the insurance activities
that Bank proposes to engage in after consummation of this proposal.
3. State deposit data are as of December 31, 1986.
4. The Bridgeport, Connecticut, banking market consists of Bridgeport, Easton, Fairfield, Monroe, Shelton, Stratford and Trumbull, all
in Fairfield County, and Ansonia, Beacon Falls, Derby, Milford,
Oxford and Seymour, all in New Haven County.
5. Market data are as of June 30, 1985.
not have any adverse effect upon competition or
increase the concentration of resources in the Bridgeport, Connecticut, banking market.
The Board has indicated previously that a bank
holding company should serve as a source of financial
and managerial strength for its subsidiary bank. In
CEBA, Congress amended the BHC Act to permit
mutual savings banks to reorganize into mutual bank
holding companies provided that the specific financial,
managerial and other statutory criteria that the Board
must consider under section 3 of the BHC Act have
been satisfied.6 The financial condition and management of People's Bank are satisfactory. Accordingly,
the Board concludes that the financial and managerial
resources of Applicant and New Bank are consistent
with approval. Considerations relating to the convenience and needs of the community to be served also
are consistent with approval.
Applicant also has applied under section 4(c)(8) of
the BHC Act for New Bank to retain control of
Guardian Federal Savings & Loan Association,
Bridgeport, Connecticut ("Guardian"), a thrift institution that was acquired by the predecessor to People's
Bank in a supervisory acquisition. Although the Board
has determined, as a general matter, that operating a
thrift institution is not a proper incident to banking, the
Board has determined in several instances involving
failing thrift institutions that such activities are a
proper incident to banking7 and has permitted, with
certain commitments,8 the acquisition of failing thrifts.
The Board has permitted such acquisitions on the
basis that the public benefits outweigh the potential
adverse effects of affiliation between thrifts and bank
holding companies. In the Society Corporation Order,9 the Board permitted a bank holding company
that had acquired a failing thrift to retain the institution
when the bank holding company was acquired subsequently by another bank holding company. Applicant's proposal to reorganize into a bank holding
company and to retain ownership of a previously
failing thrift institution subject to certain commitments
is consistent with the decision in the Society Corporation Order. In view of these facts, including the
commitments made by Applicant, and consistent with
the Board's precedent, the Board does not believe that
it would be appropriate or consistent with its current
6. Competitive Equality Banking Act of 1987, Pub. L. No. 100-86,
101 Stat. 552, 579 (1987) (to be codified at 12 U.S.C. 1842).
7. See e.g.,
Old Stone
Corporation,
69 FEDERAL RESERVE BULLE-
TIN 812 (1983); Citicorp/Fidelity Federal Savings and Loan Association,
6 8 F E D E R A L RESERVE B U L L E T I N 6 5 6 ( 1 9 8 2 ) .
8. Applicant has committed to comply with the Board's restrictions
on tandem operations between a savings and loan subsidiary of a bank
holding company and its affiliates.
9 . 7 0 F E D E R A L RESERVE B U L L E T I N 3 8 8 ( 1 9 8 4 ) .
Legal Developments
policy regarding bank/thrift affiliation to require divestiture of Guardian.
In addition, Applicant has applied for New Bank to
retain a 33.3 percent ownership interest in Cadre, Inc.,
Avon, Connecticut. This company engages in the type
of data processing activities that have been determined
by the Board to be permissible for bank holding
companies under section 225.25(b)(7) of the Board's
Regulation Y (12 C.F.R. § 225.25(b)(7)).
People's Bank engages in the business of selling
savings bank life insurance ("SBLI") and Applicant
has expressed its intention for New Bank to continue
selling SBLI after the reorganization. Generally, the
sale of life insurance is impermissible under section 4
of the BHC Act. The protestants have filed comments
in opposition to this application and have requested
the Board to impose a requirement that Applicant
divest of the SBLI activities within two years. However, these comments were filed prior to the passage of
CEBA. In CEBA, Congress amended the BHC Act to
permit savings banks, subject to certain requirements,
to engage in the sale and underwriting of SBLI. 10
Because New Bank meets the requirements of the
BHC Act, as amended by CEBA, New Bank may
continue to engage in the sale of SBLI as a permissible
nonbanking activity under the BHC Act.
In view of the facts of record, the Board concludes
that Applicant's acquisition of New Bank's nonbanking subsidiaries would not significantly affect competition in any relevant market. Furthermore, there is no
evidence in the record to indicate that approval of this
proposal would result in undue concentration of resources, unfair competition, conflicts of interest, un-
10. Competitive Equality Banking Act of 1987, Pub. L. No. 100-86,
101 Stat. 552, 562 (1987) (to be codified at 12 U.S.C. 1842).
ORDERS APPROVED
By Federal Reserve
UNDER BANK HOLDING
887
sound banking practices, or other adverse effects on
the public interest. Accordingly, the Board has determined that the balance of the public interest factors it
must consider under section 4(c)(8) of the BHC Act is
favorable and consistent with approval of the applications.
Based on the foregoing and other facts of record, the
Board determined that the applications under sections
3 and 4 of the BHC Act should be, and hereby are,
approved. The banking acquisition shall not be consummated before the thirtieth calendar day following
the effective date of this Order, and neither the banking acquisition nor the nonbanking acquisition shall
occur later than three months after the effective date of
this Order, unless the latter period is extended for
good cause by the Board or by the Federal Reserve
Bank of New York, acting pursuant to delegated
authority. The determination with respect to Applicant's acquisition of New Bank's nonbanking subsidiaries is subject to all of the conditions set forth in
Regulation Y, including sections 225.4(d) and
225.23(b) (12 C.F.R. §§ 225.4(d) and 225.23(b)), and to
the Board's authority to require such modifications or
termination of 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 BHC Act and the Board's regulations and orders
issued thereunder, or to prevent evasion thereof.
By order of the Board of Governors, effective
September 21, 1987.
Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, Heller, and Kelley. Absent and not
voting: Chairman Greenspan.
JAMES MCAFEE
[SEAL]
COMPANY
Associate Secretary of the Board
ACT
Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
Section 3
Applicant
Altenburg Bancorp, Inc.
Altenburg, Missouri
Bank(s)
Bank of Altenburg
Altenburg, Missouri
Reserve
Bank
St. Louis
Effective
date
September 3, 1987
888
Federal Reserve Bulletin • November 1987
Section 3—Continued
.
Applicant
Andover Bancorp, Inc.
Andover, Massachusets
Bancorp Hawaii, Inc.
Honolulu, Hawaii
Bank of New Hampshire
Corporation
Manchester, New Hampshire
Banterra Corp,
Eldorado, Illinois
Benton Bancorp, Inc.
Benton, Kentucky
CeeVeeTee Limited Partnership
Shawnee Mission, Kansas
Community Bank System, Inc.
DeWitt, New York
Country Bancorp, Inc.
Mt. Olive, Illinois
Elcho Bancorporation, Inc.
Altoona, Iowa
Exchange International
Corporation
Chicago, Illinois
FCB Bancshares, Inc.
Overland Park, Kansas
Fidelcor, Inc.
Philadelphia, Pennsylvania
Financial Trust Corp.
Carlisle, Pennsylvania
Fir-Ban, Inc.
Verona, Kentucky
First Illinois Bancorp, Inc.
East St. Louis, Illinois
L.T. Interim Bank
East St. Louis, Illinois
First Park County Bancshares,
Inc.
Livingston, Montana
Garden Banc Shares, Inc.
Hutchinson, Kansas
Great Bay Bankshares, Inc.
Dover, New Hampshire
Green County Bancshares, Inc.
Corbin, Kentucky
Hoff Investment Corporation
Lisco, Nebraska
215 Holding Co.
Minneapolis, Minnesota
~ ,, .
Bank(s)
Reserve
Bank
Effective
date
Andover Savings Bank
Andover, Massachusetts
First National Bank of Arizona
Phoenix, Arizona
The Suncook Bank
Suncook, New Hampshire
Boston
September 4, 1987
San Francisco
September 22, 1987
Boston
September 15, 1987
Egypt Bancorp, Inc.
Marion, Illinois
Calvert Bank
Calvert City, Kentucky
FCB Bancshares, Inc.
Overland Park, Kansas
The Nichols National Bank
Nichols, New York
Montgomery County National
Bank
Hillsboro, Illinois
State Bank of Elcho
Elcho, Wisconsin
Farmers' State Bank of Sheffield
Sheffield, Illinois
St. Louis
August 27, 1987
St. Louis
September 17, 1987
Kansas City
September 4, 1987
New York
August 31, 1987
St. Louis
August 31, 1987
Chicago
August 28, 1987
Chicago
September 8, 1987
Kansas City
September 4, 1987
Philadelphia
September 17, 1987
Philadelphia
September 22, 1987
Cleveland
September 17, 1987
St. Louis
September 17, 1987
Minneapolis
September 15, 1987
Kansas City
September 1, 1987
Boston
September 18, 1987
St. Louis
September 18, 1987
Kansas City
September 1, 1987
Minneapolis
September 1, 1987
First Continental Bank and Trust
Overland Park, Kansas
Fidelity Bank Delaware
New Castle County, Delaware
Firstway Financial, Inc.
Waynesboro, Pennsylvania
Verona Bank
Verona, Kentucky
Lindell Trust Company
St. Louis, Missouri
First National Park Bank in
Livingston
Livingston, Montana
Southwest Kansas Banc Shares,
Inc.
Hutchinson, Kansas
Southeast Bank for Savings
Dover, New Hampshire
Greensburg Deposit Bank
Greensburg, Kentucky
First Nebraska Bancs, Inc.
Lisco, Nebraska
First Bank Luverne, N.A.
Luverne, Minnesota
Legal Developments
889
Section 3—Continued
Applicant
Mercer County State Bancorp,
Inc.
Sandy Lake, Pennsylvania
Merrimack Bancorp, Inc.
Lowell, Massachusetts
Miles Bancshares, Inc.
Advance, Missouri
Mission Hills Bancshares, Inc.
Mission Woods, Kansas
Morgan Community Bancorp,
Inc.
Jacksonville, Illinois
Security Banco, Inc.
Adams, North Dakota
Shoreline Financial Corporation
Benton Harbor, Michigan
South Branch Valley Bancorp,
Inc.
Moorefield, West Virginia
Southern Bancshares, Ltd.
Carbondale, Illinois
Spring Bancorp, Inc.
Springfield, Illinois
Staun Bancorp, Inc.
Springfield, Illinois
Texas Gulf Coast Bancorp, Inc.
Houston, Texas
Tri City Bankshares
Corporation
Oak Creek, Wisconsin
Vidor Bancshares, Inc.
Vidor, Texas
W.T.B. Financial Corporation
Spokane, Washington
The Waltham Corporation
Waltham, Massachusetts
Weakley County Bancshares,
Inc.
Dresden, Tennessee
Bank(s)
Mercer County State Bank
Sandy Lake, Pennsylvania
The First National Bank of
Stoneboro
Stoneboro, Pennsylvania
Lowell Institution for Savings
Lowell, Massachusetts
The First National Bank of Lerna
Lerna, Illinois
Mission Hills Bank, N.A.
Mission Woods, Kansas
Morgan County Community Bank
Jacksonville, Illinois
Security State Bank of Adams
Adams, North Dakota
Inter-City Bank
Benton Harbor, Michigan
Citizens Trust and Savings Bank
South Haven, Michigan
South Branch Valley National
Bank of Moorefield
Moorefield, West Virginia
First National Bank and Trust
Company
Carbondale, Illinois
Bank of Springfield
Springfield, Illinois
First Community State Bank
Staunton, Illinois
Dickinson State Bank
Dickinson, Texas
Tri City National Bank of
Menomonee Falls
Menomonee Falls, Wisconsin
Plaza National Bank
Beaumont, Texas
Norban Financial Group Inc.
Coeur d'Alene, Idaho
Waltham Savings Bank
Waltham, Massachusetts
Weakley County Bank
Dresden, Tennessee
Reserve
Bank
Effective
date
Cleveland
September 2, 1987
Boston
September 4, 1987
St. Louis
August 31, 1987
Kansas City
September 15, 1987
St. Louis
August 26, 1987
Minneapolis
September 23, 1987
Chicago
September 16, 1987
Richmond
September 23, 1987
St. Louis
September 4, 1987
Chicago
September 16, 1987
St. Louis
September 2, 1987
Dallas
September 23, 1987
Chicago
September 3, 1987
Dallas
September 18, 1987
San Francisco
September 4, 1987
Boston
August 25, 1987
St. Louis
September 2, 1987
890
Federal Reserve Bulletin • November 1987
Section 4
Nonbanking/Company
Activity
Applicant
Bank of Montreal
Quebec, Canada
Charter Bank Group, Inc.
Northfield, Illinois
First Colonial Bankshares
Corporation
Chicago, Illinois
The Hongkong and Shanghai
Banking Corporation
Hong Kong
Manufacturers Hanover
Corporation
New York, New York
Otto Bremer Foundation
St. Paul, Minnesota
Valley Bancorporation
Appleton, Wisconsin
Reserve
Bank
Effective
date
Fahnestock Asset Management,
Inc.
New York, New York
Charter Group, Inc.
Northfield, Illinois
Mid-States Financial Corporation
Schaumburg, Illinois
Chicago
September 17, 1987
Chicago
September 16, 1987
Chicago
August 31, 1987
IRFC Leasing 3 Corporation
Woodcliff Lake, New Jersey
New York
September 10, 1987
BarclaysAmerican/Financial Inc.
Colorado Springs, Colorado
New York
September 4, 1987
Bremer First American Life
Insurance Company
St. Paul, Minnesota
Valley Bancard, Inc.
Madison, Wisconsin
Minneapolis
September 9, 1987
Chicago
September 10, 1987
Sections 3 and 4
Bank(s)/Nonbanking
Company
Applicant
Manufacturers National
Corporation
Detroit, Michigan
ORDERS APPROVED
By Federal Reserve
UNDER BANK
MERGER
Chicago
Effective
date
September 9, 1987
ACT
Banks
Applicant
Farmers & Merchants Bank
Huron, South Dakota
First Illinois Bancorp, Inc.
East St. Louis, Illinois
L. T. Interim Bank
East St. Louis, Illinois
Norstar Bank of Upstate NY
Albany, New York
The Provident Bank
Cincinnati, Ohio
Second BNH Acquisition Bank
Manchester, New Hampshire
Affiliated Banc Group, Inc.
Morton Grove, Illinois
Reserve
Bank
Bank(s)
Reserve
Bank
Effective
date
Security State Bank
Doland, South Dakota
Lindell Trust Company
St. Louis, Illinois
Minneapolis
September 23, 1987
St. Louis
September 17, 1987
United National Bank
Callicoon, New York
The Midwest Bank & Trust
Company
Cleveland, Ohio
The Suncook Bank
Suncook, New Hampshire
New York
September 22, 1987
Cleveland
September 23, 1987
Boston
September 15, 1987
Legal Developments
PENDING
CASES INVOLVING
THE BOARD
OF
891
GOVERNORS
This list of pending cases does not include suits against the Federal Reserve Banks in which the Board of
Governors is not named a party.
Independent Insurance Agents of America, Inc. v.
Board of Governors, No. 87-4118 (2d Cir., filed
Sept. 17, 1987).
Citicorp v. Board of Governors, No. 87-1475 (D.C.
Cir. filed Sept. 9, 1987).
Securities Industry Association v. Board of Governors, No. 87-4115 (2d Cir. filed Sept. 9, 1987)
Board of Trade of the City of Chicago, et al. v. Board
of Governors, No. 87-2389 (7th Cir. filed Sept. 1,
1987).
Barrett v. Volcker, No. 87-2280 (D.D.C., filed August
17, 1987).
Northeast Bancorp v. Board of Governors, No. 871365 (D.C. Cir., filed July 31, 1987).
National Association of Casualty & Insurance Agents
v. Board of Governors, Nos. 87-1354, 87-1355 (D.C.
Cir., filed July 29, 1987).
The Chase Manhattan Corporation v. Board of Governors, No. 87-1333 (D.C. Cir., filed July 20, 1987).
Securities Industry Association v. Board of Governors, Nos. 87-4091, 87-4093, 87-4095 (2d Cir., filed
July 1 and July 15, 1987).
Lewis v. Board of Governors, Nos. 87-3455, 87-3545
(11th Cir., filed June 25, August 3, 1987).
Securities Industry Association v. Board of Governors, et al., No. 87-4041 and consolidated cases (2d
Cir., filed May 1, 1987).
Securities Industry Association v. Board of Governors, et al., No. 87-1169 (D.C. Cir., filed April 17,
1987).
Bankers Trust New York Corp. v. Board of Governors,
No. 87-1035 (D.C. Cir., filed Jan. 23, 1987).
Securities Industry Association v. Board of Governors, et>al., No. 87-1030 (D.C.Cir., filed Jan. 20,
1987).
Grimm v. Board of Governors, No. 87-4006 (2d Cir.,
filed Jan. 16, 1987).
Independent Insurance Agents of America, et al. v.
Board of Governors, Nos. 86-1572, 1573, 1576
(D.C. Cir., filed Oct. 24, 1986).
Independent Community Bankers Association of
South Dakota v. Board of Governors, No. 86-5373
(8th Cir., filed Oct. 3, 1986).
Jenkins v. Board of Governors, No. 86-1419 (D.C.
Cir., filed July 18, 1986).
Securities Industry Association v. Board of Governors, No. 86-1412 (D.C. Cir., filed July 14, 1986).
Optical Coating Laboratory, Inc v. United States, No.
288-86C (U.S. Claims Ct., filed May 6, 1986).
CBC, Inc. v. Board of Governors, No. 86-1001 (10th
Cir., filed Jan. 2, 1986).
Myers, et al. v. Federal Reserve Board, No. 85-1427
(D. Idaho, filed Nov. 18, 1985).
Souser, et al. v. Volcker, et al., No. 85-C-2370, et al.,
(D. Colo., filed Nov. 1, 1985).
Podolak v. Volcker, No. C85-0456, et al., (D. Wyo.,
filed Oct. 28, 1985).
Kolb v. Wilkinson, et al., No. C85-4184 (N.D. Iowa,
filed Oct. 22, 1985).
Farmer v. Wilkinson, et al., No. 4-85-CIVIL-1448 (D.
Minn., filed Oct. 21, 1985).
Kurkowski v. Wilkinson, et al., No. CV-85-0-916 (D.
Neb., filed Oct. 16, 1985).
Alfson v. Wilkinson, et al., No. Al-85-267 (D. N.D.,
filed Oct. 8, 1985).
Independent Community Bankers Association of
South Dakota v. Board of Governors, No. 84-1496
(D.C. Cir., filed Aug. 7, 1985).
Urwyler, et al. v. Internal Revenue Service, et al., No.
85-2877 (9th Cir., filed July 18, 1985).
Wight, et al. v. Internal Revenue Service, et al., No.
85-2826 (9th Cir., filed July 12, 1985).
Lewis v. Volcker, et al., No. 86-3210 (6th Cir., filed
Jan. 14, 1985).
Brown v. United States Congress, et al., No. 84-28876(IG) (S.D. Cal., filed Dec. 7, 1984).
Melcher v. Federal Open Market Committee, No. 841335 (D.D.C., filed Apr. 30, 1984).
57
Financial and Business Statistics
CONTENTS
Domestic
MONEY
WEEKLY REPORTING
Financial
Statistics
STOCK AND BANK
CREDIT
Reserves, money stock, liquid assets, and debt
measures
A4 Reserves of depository institutions, Reserve
Bank credit
A5 Reserves and borrowings—Depository
institutions
A6 Selected borrowings in immediately available
funds—Large member banks
A19
A20
A21
A22
COMMERCIAL
BANKS
Assets and liabilities
All reporting banks
Banks in New York City
Branches and agencies of foreign banks
Gross demand deposits—individuals,
partnerships, and corporations
A3
POLICY
A7
A8
A9
INSTRUMENTS
Federal Reserve Bank interest rates
Reserve requirements of depository institutions
Federal Reserve open market transactions
FINANCIAL
A23 Commercial paper and bankers dollar
acceptances outstanding
A23 Prime rate charged by banks on short-term
business loans
A24 Interest rates—money and capital markets
A25 Stock market—Selected statistics
A26 Selected financial institutions—Selected assets
and liabilities
FEDERAL
FEDERAL RESERVE
BANKS
A10 Condition and Federal Reserve note statements
A l l Maturity distribution of loan and security
holdings
MONETAR Y AND CREDIT
AGGREGATES
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
A15 Bank debits and deposit turnover
A16 Loans and securities—All commercial banks
COMMERCIAL
BANKING
INSTITUTIONS
A17 Major nondeposit funds
A18 Assets and liabilities, last-Wednesday-of-month
series
MARKETS
FINANCE
A28
A29
A30
A30
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types and
ownership
A31 U.S. government securities dealers—
Transactions
A32 U.S. government securities dealers—Positions
and financing
A33 Federal and federally sponsored credit
agencies—Debt outstanding
SECURITIES MARKETS AND
CORPORATE
FINANCE
A34 New security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales and
asset position
A35 Corporate profits and their distribution
58
Federal Reserve Bulletin • November 1987
A36 Nonfinancial corporations—Assets and
liabilities
A36 Total nonfarm business expenditures on new
plant and equipment
A37 Domestic finance companies—Assets and
liabilities and business credit
A54 Foreign official assets held at Federal Reserve
Banks
A55 Foreign branches of U.S. banks—Balance sheet
data
A57 Selected U.S. liabilities to foreign official
institutions
REAL
REPORTED BY BANKS IN THE UNITED
ESTATE
A38 Mortgage markets
A39 Mortgage debt outstanding
CONSUMER
INSTALLMENT
CREDIT
A40 Total outstanding and net change
A41 Terms
STATES
A57
A58
A60
A61
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A61 Banks' own claims on unaffiliated foreigners
A62 Claims on foreign countries—Combined
domestic offices and foreign branches
FLOW OF FUNDS
REPORTED BY NONBANKING
BUSINESS
ENTERPRISES IN THE UNITED STATES
A42 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets
A63 Liabilities to unaffiliated foreigners
A64 Claims on unaffiliated foreigners
SECURITIES HOLDINGS
Domestic
SELECTED
Nonfinancial
MEASURES
A44 Nonfinancial business activity—Selected
measures
A45 Labor force, employment, and unemployment
A46 Output, capacity, and capacity utilization
A47 Industrial production—Indexes and gross value
A49 Housing and construction
A50 Consumer and producer prices
A51 Gross national product and income
A52 Personal income and saving
International
TRANSACTIONS
A65 Foreign transactions in securities
A66 Marketable U.S. Treasury bonds and notes—
Foreign transactions
INTEREST AND EXCHANGE
RATES
A67 Discount rates of foreign central banks
A67 Foreign short-term interest rates
A68 Foreign exchange rates
A69 Guide to Tabular
Statistical Releases,
Tables
Presentation,
and Special
Statistics
SPECIAL
SUMMARY
AND
Statistics
TABLES
STATISTICS
A53 U.S. international transactions—Summary
A54 U.S. foreign trade
A54 U.S. reserve assets
A70 Assets and liabilities of commercial banks,
March 31, 1987
A74 Pro forma balance sheet and income statements
for priced service operations, June 30, 1987
Money Stock and Bank Credit
1.10
A3
RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent) 1
Item
1987
1987
Q3
Q4
Q1
Q2
Apr.
May
June'
July r
Aug.
21.0
21.9
21.3
9.7
24.3
22.8
25.3
11.0
16.4
16.5
18.5
11.3
8.0
8.4
5.4
6.8
23.3
25.5
13.6
9.9
8.2
3.1
7.5
8.7
-13.3
-15.9
-8.1
.5
-2.2
6.9
0.0
4.7
6.0
.4
6.6
6.4
16.5
10.6
9.7
8.1
12.5
17.0
9.2
8.0
8.2
12.1
13.1
6.3
6.4
6.4
10.4
6.4
2.3r
3.8r
2.9r
9.3r
17.5
5.6 r
5.3r
3.C
io.cr
4.5
.3
4.6 r
8.7 r
10.5r
-10.4
.6
4.8
2.5
10.1
1.6
2.5
1.7
-3.1
8.1
5.1
5.9
7.5
n.a.
n.a.
8.6
6.2
6.6
3.2
4.0
6.4
,8r
1.4'
4.0 r
-l.lr
21.9^
4.7
21.2
2.8
-1.5
6.1
14.2
25.0
-7.5
-1.5
36.9
-10.7
.1
37.3
-4.9
9.7
24.1
-4.6r
18.3
27.8
-8.3
27.7
16.0
-1.3
18.8
6.9
10.1
16.2
7.5
11.0
-5.3
9.5
6.3
.4
21.0
-3.4
2.8
23.2
-6.4
-7.0
27.3
-4.3
-9.5
25.9
y
-8.4
30.5
.r
-19.1
17.4
-.5
2.4
12.6
9.9
8.9
2.0
12.7
8.8
9.5
12.8
14.3
14.7
11.9
10.6
11.5
12.3
9.1r
9.7
10.6
10.1
9.6
9.2'
7.0
8.4
10.4
11.9
15.1
9.1r
7.4
14.9
8.6
3.6
4.4
9.2
1.3
n.a.
n.a.
10.8
institutions2
1
2
3
4
Reserves of depository
Total
Required
Nonborrowed
Monetary base
5
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt
Nontrqnsaction
10 In M2y
11 In M3 only 6
1986
components
Time and savings deposits
Commercial banks
Savings
Small-denomination time
Large-denomination time '
Thrift institutions
15
Savings
16
Small-denomination time
17
Large-denomination time
12
13
14
Debt components4
18 Federal
19 Nonfederal
20 Total loans and securities at commercial banks
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.
2. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
3. The monetary base not adjusted for discontinuities consists of total
reserves plus required clearing balances and adjustments to compensate for float
at Federal Reserve Banks plus the currency component of the money stock less
the amount of vault cash holdings of thrift institutions that is included in the
currency component of the money stock plus, for institutions not having required
reserve balances, the excess of current vault cash over the amount applied to
satisfy current reserve requirements. After the introduction of contemporaneous
reserve requirements (CRR), currency and vault cash figures are measured over
the weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock plus the remaining items seasonally
adjusted as a whole.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits
at all commercial banks other than those due to domestic banks, the U.S.
government, and foreign banks and official institutions less cash items in the
process of collection and Federal Reserve float; and (4) other checkable deposits
(OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer
service (ATS) accounts at depository institutions, credit union share draft
accounts, and demand deposits at thrift institutions. The currency and demand
deposit components exclude the estimated amount of vault cash and demand
deposits respectively held by thrift institutions to service their OCD liabilities.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, Money Market Deposit Accounts
(MMDAs), savings and small-denomination time deposits (time deposits—including retail RPs—in amounts of less than $100,000), and balances in both taxable and
tax-exempt general purpose and broker/dealer money market mutual funds.
Excludes individual retirement accounts (IRA) and Keogh balances at depository
institutions and money market funds. Also excludes all balances held by U.S.
10
commercial banks, money market funds (general purpose and broker/dealer),
foreign governments and commercial banks, and the U.S. government. Also
subtracted is a consolidation adjustment that represents the estimated amount of
demand deposits and vault cash held by thrift institutions to service their time and
savings deposits.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted
is a consolidation adjustment that represents the estimated amount of overnight
RPs and Eurodollars held by institution-only money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are based on monthly averages. Growth rates for debt reflect adjustments for
discontinuities over time in the levels of debt presented in other tables.
5. Sum of overnight RPs and Eurodollars, money market fund balances
(general purpose and broker/dealer), MMDAs, and savings and small time
deposits less the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposit liabilities.
6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents,
money market fund balances (institution-only), less a consolidation adjustment
that represents the estimated amount of overnight RPs and Eurodollars held by
institution-only money market mutual funds.
7. Excludes MMDAs.
8. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. AH IRA and Keogh accounts at commercial
banks and thrifts are subtracted from small time deposits.
9. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
10. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
11. Changes calculated from figures shown in table 1.23.
A4
Domestic Financial Statistics • November 1987
1.11
RESERVES OF DEPOSITORY INSTITUTIONS A N D RESERVE B A N K CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1987
1987
Factors
June
July
Aug.
235,851
233,463
210,941
208,728
2,213
8,030
7,683
347
0
737
724
15,419
11,069
5,018
17,866
208,364
208,258
106
7,690
7,660
30
0
673
979
15,757
11,069
5,018
17,878'
214,465
507
July 15
July 22
July 29
Aug. 5
Aug. 12
Aug. 19
Aug. 26
231,606
234,054
232,936
230,331
233,122
231,532
230,970
230,986
206,708
206,187
521
7,764
7,623
141
0
630
702
15,802
11,068
5,018
17,930
209,239
209,239
0
7,683
7,683
0
0
673
669
15,790
11,069
5,018
17,871'
208,503
208,503
0
7,657
7,657
0
0
507
619
15,649
11,069
5,018
17,881'
205,452
205,452
0
7,623
7,623
0
0
796
527
15,933
11,069
5,018
17,891'
207,781
206,010
1,771
8,163
7,623
540
0
557
609
16,012
11,069
5,018
17,902
206,676
206,676
0
7,623
7,623
0
0
571
451
16,211
11,069
5,018
17,916
205,769
205,283
486
7,717
7,623
94
0
525
874
16,085
11,069
5,018
17,930
206,390
205,870
520
7,747
7,623
124
0
912
519
15,417
11,069
5,018
17,944
216,361'
486
216,805
471
217,205'
490
216,163'
486
215,423'
479
216,189
470
217,283
473
217,318
473
216,530
471
8,776
246
5,140
258
3,409
237
5,685
271
5,316
249
3,872
254
5,261
253
3,106
218
3,174
260
3,116
252
2,072
404
2,200
352
1,937
331
2,072
405
2,418
334
2,060
325
2,071
282
1,960
275
1,923
359
1,960
352
SUPPLYING RESERVE F U N D S
1 Reserve Bank credit
2
U.S. government securities 1
3
Bought outright
4
Held under repurchase agreements....
5
Federal agency obligations
6
Bought outright
7
Held under repurchase agreements
8
Acceptances
9
Loans
10 Float
11 Other Federal Reserve assets
12 Gold stock 2
13 Special drawing rights certificate account..
14 Treasury currency outstanding
ABSORBING RESERVE F U N D S
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18
Foreign
19 Service-related balances and
adjustments
20 Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks
6,814
6,664
6,667
6,771
6,724
6,599
6,504
6,617
6,746
6,704
36,520
35,966
35,765
35,115
35,214
35,297
36,080
35,604
34,733
35,629
End-of-month figures
Wednesday figures
1987
1987
June
July
Aug.
July 15
July 22
July 29
Aug. 5
Aug. 12
Aug. 19
Aug. 26
SUPPLYING RESERVE F U N D S
239,216
234,310
231,689
232,395
233,865
231,830
232,760
231,641
230,358
237,247
U.S. government securities 1
Bought outright
Held under repurchase agreements
Federal agency obligations
Bought outright
Held under repurchase agreements....
Acceptances
Loans
Float
Other Federal Reserve assets
212,306
210,248
2,058
8,679
7,683
996
0
972
1,579
15,680
208,170
204,871
3,299
8,553
7,623
930
0
634
507
16,446
207,238
207,238
0
7,623
7,623
0
0
566
510
15,752
207,460
207,460
0
7,683
7,683
0
0
723
789
15,740
209,230
209,230
0
7,623
7,623
0
0
497
646
15,869
206,296
206,296
0
7,623
7,623
0
0
1,613
163
16,135
207,080
207,080
0
7,623
7,623
0
0
439
1,218
16,400
205,688
205,688
0
7,623
7,623
0
0
1,291
490
16,549
206,288
206,288
0
7,623
7,623
0
0
502
715
15,230
209,448
205,809
3,639
8,493
7,624
869
0
2,973
714
15,619
34 Gold stock 2
35 Special drawing rights certificate account..
36 Treasury currency outstanding
11,069
5,018
17,889
11,069
5,018
17.90C
11,068
5,018
17,956
11,069
5,018
17,880'
11,069
5,018
17,89c
11,069
5,018
17,90c
11,069
5,018
17,914
11,069
5,018
17,928
11,069
5,018
17,942
11,068
5,018
17,956
215,201
492
215,898'
470
216,471
463
216,929'
490
215,845'
483
215,682'
470
216,840
470
217,616
473
217,145
473
216,415
468
13,774
318
5,365
262
3,763
295
3,351
381
6,038
283
4,711
244
4,5%
187
3,514
279
3,112
188
3,955
217
1,775
458
1,747
281
1,709
284
1,779
618
1,762
286
1,762
342
1,747
210
1,747
281
1,697
312
1,698
486
23 Reserve Bank credit
24
25
26
27
28
29
30
31
32
33
ABSORBING RESERVE F U N D S
37 Currency in circulation
38 Treasury cash holdings2
Deposits, other than reserve balances, with
Federal Reserve Banks
39 Treasury
40
Foreign
41
Service-related balances and
adjustments
42
Other
43 Other Federal Reserve liabilities and
capital
44 Reserve balances with Federal
Reserve Banks
6,847
6,520
6,964
6,592
6,539
6,422
6,280
6,591
6,525
6,658
34,327
37,754
35,782
36,225
36,606
36,184
36,427
35,154
34,936
41,392
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes any securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Revised for periods between October 1986 and April 1987. At times during
this interval, outstanding gold certificates were inadvertently in excess of the gold
stock. Revised data not included in this table are available from the Division of
Research and Statistics, Banking Section.
3. Excludes required clearing balances and adjustments to compensate for
float.
NOTE. For amounts of currency and coin held as reserves, see table 1.12.
Money Stock and Bank Credit
1.12 RESERVES AND BORROWINGS
A5
Depository Institutions
Millions of dollars
Monthly averages 8
Reserve classification
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks 1
Total vault cash
Vault 1
Surplus 4 .
Total reserves
Required reserves
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks
1984
1985
1986
1986
1987
Dec.
Dec.
Dec.
Dec.
Feb.
Mar.
Apr.
May
June
July
21,738
22,313
18,958
3,355
40,696
39,843
853
3,186
113
2,604
27,620
22,953
20,522
2,431
48,142
47,085
1,058
1,318
56
499
37,360
24,071
22,199
1,872
59,560
58,191
1,369
827
38
303
37,360
24,071
22,199
1,872
59,560
58,191
1,369
827
38
303
33,625
25,889
23,435
2,454
57,060
55,849
1,211
556
71
283
35,318
23,759
21,743
2,016
57,061
56,146
916
527
91
264
37,807
23,353
21,587
1,767
59,393
58,566
827
993
120
270
36,466
23,693
21,873
1,820
58,339
57,260
1,079
1,035
196
288
36,309
24,380
22,475
1,905
58,784
57,594
1,190
776
259
273
36,110
24,631
22,728
1,903
58,838
58,078
761
672
283
194
Biweekly averages of daily figures for weeks ending
1987
11
12
13
14
15
16
17
18
19
20
Reserve balances with Reserve Banks 1
Total vault cash 2
Vault 5
Surplus 4 ... ^
Total reserves
Required reserves
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks ..
Extended credit at Reserve Banks
May 6
May 20
June 3
June 17
July 1
July 15
July 29
Aug. 12"
Aug. 26 p
Sept. 9"
37,612
23,289
21,519
1,770
59,131
58,115
1,016
1,410
159
299
36,327
23,552
21,801
1,751
58,128
57,066
1,063
830
190
276
36,018
24,094
22,158
1,936
58,176
57,042
1,134
1,094
226
297
37,145
23,668
21,972
1,696
59,117
58,313
804
635
230
254
35,475
25,215
23,092
2,123
58,567
56,947
1,620
856
298
289
37,083
24,238
22,470
1,769
59,553
59,081
472
696
271
261
35,221
25,029
23,002
2,027
58,223
57,240
983
652
294
133
35,850
24,306
22,439
1,867
58,289
57,488
801
564
289
120
35,173
25,074
23,115
1,959
58,288
57,116
1,173
719
286
128
36,295
24,288
22,444
1,844
58,738
57,545
1,194
647
241
173
1. Excludes required clearing balances and adjustments to compensate for
float.
2. Dates refer to the maintenance periods in which the vault cash can be used
to satisfy reserve requirements. Under contemporaneous reserve requirements,
maintenance periods end 30 days after the lagged computation periods in which
the balances are held.
3. Equal to all vault cash held during the lagged computation period by
institutions having required reserve balances at Federal Reserve Banks plus the
amount of vault cash equal to required reserves during the maintenance period at
institutions having no required reserve balances.
4. Total vault cash at institutions having no required reserve balances less the
amount of vault cash equal to their required reserves during the maintenance
period.
5. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash used to satisfy reserve
requirements. Such vault cash consists of all vault cash held during the lagged
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required reserves.
7. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
8. Before February 1984, data are prorated monthly averages of weekly
averages; beginning February 1984, data are prorated monthly averages of
biweekly averages.
NOTE. These data also appear in the Board's H.3 (502) release. For address, see
inside front cover.
A6
Domestic Financial Statistics • November 1987
1.13
S E L E C T E D B O R R O W I N G S IN I M M E D I A T E L Y A V A I L A B L E F U N D S
Large Member Banks 1
Averages of daily figures, in millions of dollars
1987 week ending Monday
Maturity and source
1
2
3
4
Apr. 2T
May 4r
May l l r
May 18
May 25
June 1
June 8
June 16
June 22
72,584
8,870
74,879
8,890
72,230
9,282
74,185r
9,341
70,799
9,586
71,703
9,567
74,810
9,362
72,633
9,325
68,755
8,719
35,868
8,314
36,651
9,951
37,765
9,969
34,183
9,731
34,329
9,654
34,356
9,008
35,114
8,503
34,380
8,508
31,698
8,378
Federal funds purchased, repurchase agreements, and
other selected borrowing in immediately available
funds
From commercial banks in the United States
For one day or under continuing contract
For all other maturities
From other depository institutions, foreign banks and
foreign official institutions, and United States government agencies
For one day or under continuing contract
For all other maturities
Repurchase agreements on U.S. government and federal
agency securities in immediately available funds
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities
12,203
12,872
12,510
14,338
11,105
14,320
11,404
15,298
11,482
15,980
10,800
14,975
10,497
14,421
10,459
14,413
9,664
13,794
25,607
8,863
24,307
8,591
23,679
8,552
24,329
8,678
24,777
8,561
25,068
8,741
24,985
8,561
25,470
8,289
24,139
8,882
MEMO: Federal funds loans and resale agreements in immediately available funds in maturities of one day or
under continuing contract
9 To commercial banks in the United States
10 To all other specified customers 2
29,541
13,656
32,437
12,864
27,312
11,449
29,112'
13,004
26,927r
13,353
29,051'
13,481
28,335
13,857
25,945
14,117
26,899
14,685
5
6
7
8
1. Banks with assets of $1 billion or more as of Dec. 31, 1977.
2. Brokers and nonbank dealers in securities; other depository institutions;
foreign banks and official institutions; and United States government agencies.
Policy Instruments
A7
1.14 FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Federal Reserve
Bank
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . .
Extended Credit 2
Adjustment Credit
and
Seasonal Credit 1
After 30 days of Borrowing 3
First 30 days of Borrowing
On
9/23/87
Effective
Date
Previous
Rate
On
9/23/87
Effective
Date
Previous
Rate
On
9/23/87
Effective
Date
Previous
Rate
6
9/9/87
9/4/87
9/4/87
9/4/87
9/5/87
9/4/87
5 Vi
6
9/9/87
9/4/87
9/4/87
9/4/87
9/5/87
9/4/87
5Vi
7.45
9/10/87
9/10/87
9/10/87
9/10/87
9/10/87
9/10/87
7.25
6
9/4/87
9/9/87
9/8/87
9/4/87
9/11/87
9/9/87
5Vi
9/4/87
9/9/87
9/8/87
9/4/87
9/11/87
9/9/87
6
5V>>
7.45
Range of rates for adjustment credit in recent years
Effective date
In effect Dec. 31, 1973
1974—Apr. 25
30
Dec. 9
16
1975—Jan.
6
10
24
Feb. 5
7
Mar. 10
14
May 16
23
Range (or
level)—
All F.R.
Banks
7Vi
7Vi-8
8
73/4-8
73/4
1V*-VA
7V4-7V4
7V4
634-71/4
63/4
6W-63/4
m
6-6V4
6
F.R.
Bank
of
N.Y.
IV2
73/4
73/4
73/4
7V4
7V4
63/4
63/4
6V4
6^4
6
6
1976—Jan.
19
23
Nov. 22
26
5Vi-6
5 Vi
5V4-5 Vi
5!/4
5Vi
5Vi
5V4
5!/4
1977—Aug. 30
31
Sept. 2
Oct. 26
5V4-53/4
5V4-53/4
53/4
6
5V4
53/4
53/4
6
6 - 6 Vl
6 Vi
6 Vi
1978—Jan.
9
20
May 11
12
July
3
July 10
6Vi
6Vi-7
7
7-7W
7V4
1
1
7V4
7V4
Effective date
1978—Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
73/4
8
8-8V2
73/4
8
m
Wi
8^2-91/2
8V>>
9 Vi
9 Vi
10
lO-lOVi
1980—Feb. 15
19
May 29
30
June 13
16
July 28
29
Sept. 26
Nov. 17
Dec. 5
8
12-13
13
12-13
12
11-12
11
10-11
10
11
12
12-13
13
13
13
13
12
11
11
10
10
11
12
13
13
1981—May
5.
8
2
6
4
13-14
14
13-14
13
12
14
14
13
13
12
20.
23
llVi-12
1
Nov.
Dec.
10V2
10Vi-ll
11
11-12
12
1. Adjustment credit is available on a short-term basis to help depository
institutions meet temporary needs for funds that cannot be met through reasonable alternative sources. After May 19,1986, the highest rate established for loans
to depository institutions may be charged on adjustment credit loans of unusual
size that result from a major operating problem at the borrower's facility.
Seasonal credit is available to help smaller depository institutions meet regular,
seasonal needs for funds that cannot be met through special industry lenders and
that arise from a combination of expected patterns of movement in their deposits
and loans. A temporary simplified seasonal program was established on Mar. 8,
1985, and the interest rate was a fixed rate Vi percent above the rate on adjustment
credit. The program was re-established on Feb. 18, 1986 and again on Jan. 28,
1987; the rate may be either the same as that for adjustment credit or a fixed rate
Vi percent higher.
2. Extended credit is available to depository institutions, where similar assistance is not reasonably available from other sources, when exceptional circumstances or practices involve only a particular institution or when an institution is
experiencing difficulties adjusting to changing market conditions over a longer
period of time.
3. For extended-credit loans outstanding more than 30 days, a flexible rate
IVi
8/27/87
8/27/87
8/27/87
8/27/87
8/27/87
8/27/87
7.25
10
lOVi
lOVi
11
11
12
12
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
1982—Aug.
ll-llVi-12
11
10 Vi
lO-lOVi
10
9Vi-10
9Vi
9-9Vi
9
8Vi-9
8Vi-9
8Vi
11
11
lOVi
10
10
9Vi
9Vi
9
9
9
8Vi
8Vi
1984—Apr.
9
13
Nov. 21
26
Dec. 24
8Vi-9
9
8Vi-9
8 Vi
8
9
9
8Vi
8Vi
8
1985—May 20
24
7Vi-8
7Vi
1986—Mar.
7-7 Vi
7
6Vi-7
6Vi
6
Effective date
2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
7
10
Apr. 21
23
July 11
Aug. 21
22
1987—Sept.
4
11
In effect September 23, 1987 . .
1982—July
8/27/87
8/27/87
8/27/87
8/27/87
8/27/87
8/27/87
4
m
1979—July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
9/10/87
9/10/87
9/10/87
9/10/87
9/10/87
9/10/87
Effective Date
5Y2- 6
5Vi
5V2-6
m
IVi
1
1
6Vi
6 Vi
6
5 Vi
5Vi
6
6
6
6
6
llVi
11
Vi
somewhat above rates on market sources of funds ordinarily will be charged, but
in no case will the rate charged be less than the basic discount rate plus 50 basis
points. The flexible rate is re-established on the first business day of each
two-week reserve maintenance period. At the discretion of the Federal Reserve
Bank, the time period for which the basic discount rate is applied may be
shortened.
4. For earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, and 1941-1970; Annual
Statistical
Digest, 1970-1979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than 4 weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980 through May 7,
1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was
adopted; the surcharge was subsequently raised to 3 percent on Dec. 5,1980, and
to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective
Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981 the
formula for applying the surcharge was changed from a calendar quarter to a
moving 13-week period. The surcharge was eliminated on Nov. 17, 1981.
A8
DomesticNonfinancialStatistics • November 1987
1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1
Percent of deposits
Type of deposit, and
deposit interval
Depository institution requirements
after implementation of the
Monetary Control Act
Effective date
Net transaction accounts
$0 million-$36.7 million
More than $36.7 million . . .
12/30/86
12/30/86
Nonpersonal time deposits5
By original maturity
Less than 1 Vi years
IV2 years or more
10/6/86
10/6/83
Eurocurrency
All types
liabilities
1. Reserve requirements in effect on Dec. 31,1986. Required reserves must be
held in the form of deposits with Federal Reserve Banks or vault cash.
Nonmembers may maintain reserve balances with a Federal Reserve Bank
indirectly on a pass-through basis with certain approved institutions. For previous
reserve requirements, see earlier editions of the Annual Report and of the
FEDERAL RESERVE BULLETIN. Under provisions of the Monetary Control Act,
depository institutions include commercial banks, mutual savings banks, savings
and loan associations, credit unions, agencies and branches of foreign banks, and
Edge corporations.
2. The Garn-St. Germain Depository Institutions Act of 1982 (Public Law
97-320) requires that $2 million of reservable liabilities (transaction accounts,
nonpersonal time deposits, and Eurocurrency liabilities) of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the succeeding calendar year by 80 percent of the percentage
increase in the total reservable liabilities of all depository institutions, measured
on an annual basis as of June 30. No corresponding adjustment is to be made in
the event of a decrease. On Dec. 30, 1986, the exemption was raised from $2.6
million to $2.9 million. In determining the reserve requirements of depository
institutions, the exemption shall apply in the following order: (1) net NOW
accounts (NOW accounts less allowable deductions); (2) net other transaction
accounts; and (3) nonpersonal time deposits or Eurocurrency liabilities starting
11/13/80
with those with the highest reserve ratio. With respect to NOW accounts and
other transaction accounts, the exemption applies only to such accounts that
would be subject to a 3 percent reserve requirement.
3. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers in excess of
three per month for the purpose of making payments to third persons or others.
However, MMDAs and similar accounts subject to the rules that permit no more
than six preauthorized, automatic, or other transfers per month, of which no more
than three can be checks, are not transaction accounts (such accounts are savings
deposits subject to time deposit reserve requirements).
4. The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage increase in transaction accounts held by
all depository institutions, determined as of June 30 each year. Effective Dec. 30,
1986, the amount was increased from $31.7 million to $36.7 million.
5. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which a beneficial interest is
held by a depositor that is not a natural person. Also included are certain
transferable time deposits held by natural persons and certain obligations issued
to depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.
Policy Instruments
1.17
A9
FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
Millions of dollars
1987
1984
Type of transaction
1985
1986
Jan.
Mar.
Feb.
May
Apr.
July
June
U . S . TREASURY SECURITIES
Outright transactions (excluding
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
matched
20,036
8,557
0
7,700
22,214
4,118
0
3,500
22,602
2,502
0
1,000
997
583
0
0
191
3,581
0
800
1,062
0
0
0
4,226
653
0
0
1,697
0
0
0
575
22
0
0
575
912
0
4,572
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
1,126
0
16,354
-20,840
0
1,349
0
19,763
-17,717
0
190
0
18,673
-20,179
0
0
0
611
0
0
0
0
1,855
-4,954
0
0
0
1,762
-1,799
0
1,232
0
1,375
-522
0
0
0
4,063
-1,336
0
535
0
1,715
-1,812
0
0
0
1,437
-613
0
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,638
0
-13,709
16,039
2,185
0
-17,459
13,853
893
0
-17,058
16,984
0
0
-591
0
0
252
-1,650
4,354
0
0
-1,762
1,799
3,642
0
-1,373
522
0
0
-1,804
1,111
1,394
0
-1,715
1,812
0
200
-1,397
613
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
536
300
-2,371
2,750
458
100
-1,857
2,184
236
0
-1,620
2,050
0
0
-20
0
0
0
-204
400
0
0
0
0
914
0
-3
0
0
0
-2,259
150
312
0
0
0
0
0
-40
0
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
441
0
-275
2,052
293
0
-447
1,679
158
0
0
1,150
0
0
0
0
0
0
0
200
0
0
0
0
669
0
0
0
0
0
0
75
251
0
0
0
0
0
0
0
23,776
8,857
7,700
26,499
4,218
3,500
24,078
2,502
1,000
997
583
0
191
3,833
800
1,062
0
0
10,683
653
0
1,697
0
0
3,066
22
0
575
1,112
4,572
Matched transactions
25 Gross sales
26 Gross purchases
808,986
810,432
866,175
865,968
927,997
927,247
63,865
65,145
82,086
81,387
72,306
73,476
83,822
82,494
91,642
92,137
87,228
87,128
80,304
80,037
Repurchase agreements^
27 Gross purchases
28 Gross sales
127,933
127,690
134,253
132,351
170,431
160,268
36,373
46,897
0
3,168
5,657
5,657
37,653
23,881
59,340
73,111
24,167
22,108
3,298
2,058
8,908
20,477
29,989
-8,830
-8,307
2,231
22,474
-11,580
5,002
-4,136
0
0
256
0
0
162
0
0
398
0
0
110
0
0
0
0
0
0
0
0
37
0
0
*
0
0
0
0
0
59
11,509
11,328
22,183
20,877
31,142
30,522
4,714
6,171
0
857
897
897
9,265
5,908
16,071
19,428
3,907
2,910
929
996
-76
1,144
222
-1,567
-857
0
3,320
-3,357
997
-126
36 Repurchase agreements, net
-418
0
0
0
0
0
0
0
0
0
37 Total net change in System Open Market
Account
8,414
21,621
30,211
-10,397
-9,165
2,231
25,794
-14,936
5,999
-4,262
All maturities
22 Gross purchases
23 Gross sales
24 Redemptions
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
Outright transactions
30 Gross purchases
31 Gross sales
32 Redemptions
Repurchase
agreements2
33 Gross purchases
34 Gross sales
35 Net change in federal agency obligations
BANKERS ACCEPTANCES
1. Sales, redemptions, and negative figures reduce holdings of the System Open
Market Account; all other figures increase such holdings. Details may not add to
totals because of rounding.
2. In July 1984 the Open Market Trading Desk discontinued accepting bankers
acceptances in repurchase agreements,
A10
1.18
DomesticNonfinancialStatistics • November 1987
FEDERAL RESERVE BANKS
Condition and Federal Reserve N o t e Statements 1
Millions of dollars
Account
July 29
Aug. 5
Wednesday
End of month
1987
1987
Aug. 12
Aug. 19
Aug. 26
June
July
Aug.
Consolidated condition statement
ASSETS
1
2
3
4
5
6
/
8
9
10
11
12
13
14
Gold certificate account
Special drawing rights certificate account
Coin
Loans
To depository institutions
Other
Acceptances held under repurchase agreements
Federal agency obligations
Bought outright
Held under repurchase agreements
U.S. Treasury securities
Bought outright
Bills
Notes
Bonds
Total bought outright
Held under repurchase agreements
Total U.S. Treasury securities
15 Total loans and securities
16 Items in process of collection
17 Bank premises
Other assets
18
Denominated in foreign currencies 3
19
All other
20 Total assets
11,069
5,018
646
11,069
5,018
640
11,069
5,018
637
11,069
5,018
441
11,068
5,018
442
11,069
5,018
451
11,069
5,018
647
11,068
5,018
446
1,613
0
0
439
0
0
1,291
0
0
502
0
0
2,973
0
0
972
0
0
634
0
0
566
0
0
7,623
0
7,623
0
7,623
0
7,623
0
7,624
869
7,683
996
7,623
930
7,623
0
103,950
75,322
27,024
206,2%
0
206,296
104,729
75,327
27,024
207,080
0
207,080
103,338
75,327
27,023
205,688
0
205,688
103,937
75,252
27,099
206,288
0
206,288
103,458
75,252
27,099
205,809
3,639
209,448
107,702
75,522
27,024
210,248
2,058
212,306
102,526
75,322
27,023
204,871
3,299
208,170
104,888
75,252
27,098
207,238
0
207,238
215,532
215,142
214,602
214,413
220,914
221,957
217,357
215,427
5,542
685
7,737
686
6,182
686
6,635
691
6,401
687
9,801
683
5,575
687
5,025
686
7,804
7,648
7,667
8,047
7,988
7,875
8,029
6,510
8,064
6,868
7,782
7,183
7,666
8,096
8,244
6,822
253,944
256,006
254,057
252,806
259,462
263,944
256,115
252,736
LIABILITIES
21 Federal Reserve notes
Deposits
To depository institutions
23
U.S. Treasury—General account
24
Foreign—Official accounts
25
Other
198,898
200,040
200,799
200,116
199,369
198,255
199,115
199,424
12
37,950
4,711
244
342
38,174
4,596
187
210
36,901
3,514
279
281
36,633
3,112
188
312
43,090
3,955
217
486
36,102
13,774
318
458
39,501
5,365
262
281
37,491
3,763
295
284
26 Total deposits
43,247
43,167
40,975
40,245
47,748
50,652
45,409
41,833
5,379
2,186
6,519
2,187
5,692
2,330
5,920
2,276
5,687
2,398
8,190
2,356
5,071
2,341
4,515
2,280
249,710
251,913
249,796
248,557
255,202
259,453
251,936
248,052
1,970
1,873
391
1,970
1,874
249
1,974
1,874
413
1,977
1,874
398
1,983
1,874
403
1,961
1,873
657
1,970
1,872
337
1,984
1,874
826
33 Total liabilities and capital accounts
253,944
256,006
254,057
252,806
259,462
263,944
256,115
252,736
34 MEMO: Marketable U.S. Treasury securities held in
custody for foreign and international account
176,935
178,970
176,490
179,475
182,077
183,125
176,181
183,931
27 Deferred credit items
28 Other liabilities and accrued dividends 5
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding issued to bank
36
LESS: Held by bank
37
Federal Reserve notes, net
Collateral held against notes net:
38
Gold certificate account
39
Special drawing rights certificate account
40
Other eligible assets
41
U.S. Treasury and agency securities
247,480
48,582
198,898
248,010
47,970
200,040
248,758
47,959
200,799
249,343
49,227
200,116
250,039
50,670
199,369
244,360
46,105
198,255
247,656
48,541
199,115
250,354
50,930
199,424
11,069
5,018
0
182,811
11,069
5,018
0
183,953
11,069
5,018
0
184,712
11,069
5,018
0
184,029
11,068
5,018
0
183,283
11,069
5,018
0
182,168
11,069
5,018
0
183,028
11,068
5,018
0
183,338
42 Total collateral
198,898
200,040
200,799
200,116
199,369
198,255
199,115
199,424
1. Some of these data also appear in the Board's H.4.1 (503) release. For
address, see inside front cover.
2. Includes securities loaned—fully guaranteed by U.S. Treasury securities
pledged with Federal Reserve Banks—and excludes securities sold and scheduled
to be bought back under matched sale-purchase transactions.
3. Valued monthly at market exchange rates.
4. Includes special investment account at the Federal Reserve Bank of Chicago
in Treasury bills maturing within 90 days.
5. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
Federal Reserve Banks
1.19 FEDERAL RESERVE BANKS
Maturity Distribution of Loan and Security Holdings
Millions of dollars
Type and maturity groupings
Wednesday
End of month
1987
1987
July 29
Aug. 5
Aug. 12
Aug. 19
Aug. 26
June 30
July 31
1 Loans—Total
Within 15 days
2
3
16 days to 90 days
4
91 days to 1 year
1,613
1,582
31
0
439
257
182
0
1,291
1,120
171
0
502
476
26
0
2,973
2,948
25
0
972
887
85
0
634
503
131
0
5 Acceptances—Total
6
Within 15 days
7
16 days to 90 days
91 days to 1 year
8
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9 U.S. Treasury securities—Total ..
10
Within 15 days 1
11
16 days to 80 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
206,2%
12,059
45,756
67,809
41,709
14,702
24,261
207,080
13,895
47,494
65,751
40,977
14,702
24,261
205,688
9,970
47,224
68,554
40,977
14,702
24,261
206,288
13,179
46,152
67,841
40,579
14,201
24,336
209,447
15,880
46,470
67,982
40,579
14,200
24,336
212,306
8,789
51,563
70,995
41,956
14,742
24,261
208,170
12,461
49,845
65,929
40,972
14,702
24,261
16 Federal agency obligations—Total
17
Within 15 days 1
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
7,623
164
843
1,307
3,741
1,288
280
7,623
40
983
1,291
3,741
1,288
280
7,623
50
933
1,351
3,706
1,303
280
7,623
295
688
1,351
3,706
1,303
280
8,493
1,184
618
1,462
3,663
1,286
280
8,679
1,229
614
1,449
3,814
1,293
280
8,553
1,093
843
1,307
3,741
1,289
280
1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.
All
A12
DomesticNonfinancialStatistics • November 1987
1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE
Billions of dollars, averages of daily figures
1987
Item
1983
Dec.
1984
Dec.
1985
Dec.
1986
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
57.60'
57.89
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 1
1 Total reserves2
2
3
4
5
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3
Required reserves
Monetary base 4
36.16
39.51
46.06
56.17
56.88
56.87
56.85
57.95
58.35
57.71
35.38
35.38
35.59
185.38
36.32
38.93
38.66
199.20
44.74
45.24
45.00
217.32
55.34
55.64
54.80
239.51
56.30
56.53
55.82
242.43
56.32
56.60
55.66
243.97
56.32r
56.59
55.94
244.56
56.96
57.23
57.13
246.59
57.32
57.60
57.27
248.37
56.93
57.20
56.52
248.48
56.93
57.12
56.84
249.46
57.24
SIM
56.86
250.79
58.37
57.30
57.63
57.74
57.40
55.54
57.38
55.80
57.65
55.15
57.54
241.92' 246.07
56.26
56.55
56.22
246.83
56.85
57.07
57.12
57.27
56.43r 56.98
249.29 251.42
56.76
56.89
56.37
251.42
Notseasonallyadjusted
6 Total reserves2
7
8
9
10
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base
36.87
40.57
47.24
57.64
58.73
56.09
36.09
36.10
36.31
188.65
37.38
39.98
39.71
202.34
45.92
46.42
46.18
220.82
56.81
57.11
56.27
243.63
58.15
58.38
57.66
243.42
55.53
55.81
54.88
240.82
38.89
40.70
48.14
59.56
59.67
57.06
57.06
59.39
58.34
58.78
58.84
58.38
38.12
38.12
38.33
192.26
37.51
40.09
39.84
204.18
46.82
47.41
47.08
223.53
58.73
59.04
58.19
247.71
59.09
59.32
58.60
246.75
56.50
56.74
55.85
244.22
56.53
56.82
56.15
244.98
58.40
58.19
58.57
249.24
57.30
58.03
57.26
249.94
58.01
58.34
57.59
252.54
58.17r
58.37
58.08
254.67
57.73
57.77
57.34
254.36
56.07
N O T ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 5
11 Total reserves2
12
13
14
15
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3
Required reserves
Monetary base 4
1. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for
discontinuities in the monetary base, required clearing balances and adjustments
to compensate for float also are subtracted from the actual series.
2. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash held during the lagged
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
3. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
4. The monetary base not adjusted for discontinuities consists of total reserves
plus required clearing balances and adjustments to compensate for float at Federal
Reserve Banks and the currency component of the money stock less the amount
of vault cash holdings of thrift institutions that is included in the currency
component of the money stock plus, for institutions not having required reserve
balances, the excess of current vault cash over the amount applied to satisfy
current reserve requirements. After the introduction of contemporaneous reserve
requirements (CRR), currency and vault cash figures are measured over the
weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock and the remaining items seasonally
adjusted as a whole.
5. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated with
implementation of the Monetary Control Act or other regulatory changes to
reserve requirements.
NOTE. Latest monthly and biweekly figures are available from the Board's
H.3(502) statistical release. Historical data and estimates of the impact on
required reserves of changes in reserve requirements are available from the
Banking Section, Division of Research and Statistics, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
Monetary and Credit Aggregates
A13
1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Billions of dollars, averages of daily figures
1987
Item 1
1983
Dec.
1984
Dec.
1985
Dec.
1986
Dec.
May
June
July'
Aug.
Seasonally adjusted
1 Ml
? M2
M3
4 L
5 Debt
526.9
2,184.6
2,692.8
3,154.6
5,206.2
557.5
2,369.1
2,985.4
3,529.0
5,946.2
627.0
2,569.5
3,205.2'
3,838.6'
6,774.9
730.5
2,801.2r
3,492.3'
4,144.2'
7,630.4
753.1
2,840.4'
3,559.9'
4,220.9'
7,914.2'
746.6
2,841.9'
3,576.7'
4,232.4'
7,980.5'
747.6
2,848.0
3,583.2
4,223.3
8,034.3
750.9
2,862.2
3,605.7
n.a.
n.a.
148.3
4.9
242.3
131.4
158.5
5.2
248.3
145.5
170.6
5.9
272.2
178.3
183.5
6.4
308.3
232.2
190.2
6.7
303.9
252.2
191.1
6.8
297.4
251.2
192.1
6.8
296.2
252.5
193.2
6.9
296.4
254.5
1,657.7
508.2
1,811.5
616.3
1,942.5
635.7'
2,070.8'
691.1'
2,087.3'
719.5'
2,095.4'
734.8'
2,100.4
735.2
2,111.3
743.4
6
7
8
9
M l components
Currency
Travelers checks
Demand deposits
Other checkable deposits 5
10
11
Nontransactions components
In M2 . . .
In M3 only'
1?
13
Savings deposits 8
Commercial Banks
Thrift institutions
133.2
173.0
122.2
166.6
124.6
179.0
154.5
211.8
174.5
237.2
175.5
239.7
176.6
240.1
178.0
242.0
14
15
Small denomination time deposits 9
Commercial Banks
Thrift institutions
350.9
432.9
386.6
498.6
383.9
500.3
364.7
488.7
357.1
485.9
360.1'
489.9
363.4
495.1
365.3
500.3
16
17
Money market mutual funds
General purpose and broker/dealer
Institution-only
138.2
43.2
167.5
62.7
176.5
65.1
207.6
84.1
209.1
81.8
210.2
81.3
210.4
83.4
213.4
83.4
18
19
Large denomination time deposits 10
Commercial Banks 1
Thrift institutions
230.0
96.2
269.6
147.3
284.1
152.1
291.8
155.3
310.7
149.0
314.9
150.1
313.7
151.2
313.8
152.9
70
21
Debt components
Federal debt
Nonfederal debt
1,170.5
4,035.7
1,365.3
4,580.9
1,584.6
5,190.3
1,804.5
5,825.9
1,864.2
6,050.0'
1,887.4
6,093.1'
1,894.4
6,139.9
n.a.
n.a.
751.5
2,855.1
3,583.0
4,223.6
7,992.8
749.3
2,860.3
3,601.2
n.a.
n.a.
Not seasonally adjusted
?.?
23
24
75
26
Ml
M2
M3
L
538.3
2,191.6
2,702.4
3,163.1
5,200.7
570.3
2,378.3
2,997.2
3,539.7
5,940.6
641.0
2,580.5
3,218.4'
3,850.4r
6,768.3
746.5
2,814.7'
3,507.5'
4,157.6'
7,623.1
744.9
2,829.4'
3,550.1'
4,205.4'
7,877.8'
749.1
2,843.1'
3,574.5'
4,231.7'
7,938.7'
150.6
4.6
251.0
132.2
160.8
4.9
257.2
147.4
173.1
5.5
282.0
180.4
186.2
6.0
319.5
235.0
190.2
6.5
298.8
249.4
191.9
7.1
298.8
251.3
193.8
7.7
298.7
251.3
194.1
7.9
294.8
252.5
1,653.3
510.8
1,808.0
618.9
1,939.5
637.9r
2,068.2'
692.8'
2,084.4'
720.7'
2,094.C
731.5'
2,103.6
727.9
2,111.0
740.9
27
2.8
29
30
M l components
Currency
Travelers checks
Demand deposits
Other checkable deposits
31
32
Nontransactions components
M2®
M3 only 7
33
34
Money market deposit accounts
Commercial Banks
Thrift institutions
230.4
148.5
267.4
150.0
332.5
180.7
379.0
192.4
368.9
188.3
367.6
185.9
365.2
182.8
364.0
179.5
35
36
Savings deposits 8
Commercial Banks
Thrift institutions
132.2
172.4
121.4
166.2
123.9
178.8
153.8
211.8
174.8
237.8
176.6
240.8
178.4
241.9
178.2
240.1
37
38
Small denomination time deposits 9
Commercial Banks
Thrift institutions
351.1
433.5
386.7
499.6
383.8
501.5
364.4
489.8
355.7
482.6
359.7
487.1
363.9
494.7
366.7
499.5
39
40
Money market mutual funds
General purpose and broker/dealer
Institution-only
138.2
43.2
167.5
62.7
176.5
65.1
207.6
84.1
209.1
81.8
210.2
81.3
210.4
83.4
213.4
83.4
41
42
Large denomination time deposits 10
Commercial Banks 11
Thrift institutions
231.6
96.3
271.2
147.3
285.6
151.9
293.2
154.9
309.2
149.0
311.8
149.7
310.4
150.6
313.2
153.1
43
44
Debt components
Federal debt
Nonfederal debt
1,170.2
4,030.5
1,364.7
4,575.8
1,583.7
5,184.5
1,803.3
5,819.8
1,857.8
6,020.0'
1,869.1
6,069.6'
1,872.4
6,120.4
For notes see following page.
n.a.
n.a.
A14
DomesticNonfinancialStatistics • November 1987
NOTES TO TABLE 1.21
1. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of commercial banks ; (2) travelers checks of nonbank issuers; (3) demand deposits
at all commercial banks other than those due to domestic banks, the U.S.
government, and foreign banks and official institutions less cash items in the
process of collection and Federal Reserve float; and (4) other checkable deposits
(OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer
service (ATS) accounts at depository institutions, credit union share draft
accounts, and demand deposits at thrift institutions. The currency and demand
deposit components exclude the estimated amount of vault cash and demand
deposits respectively held by thrift institutions to service their OCD liabilities.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S banks worldwide, MMDAs, savings and smalldenomination time deposits (time deposits—including retail RPs—in amounts of
less than $100,000), and balances in both taxable and tax-exempt general purpose
and broker/dealer money market mutual funds. Excludes individual retirement
accounts (IRA) and Keogh balances at depository institutions and money market
funds. Also excludes all balances held by U.S. commercial banks, money market
funds (general purpose and broker/dealer), foreign governments and commercial
banks, and the U.S. government. Also subtracted is a consolidation adjustment
that represents the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposits.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted
is a consolidation adjustment that represents the estimated amount of overnight
RPs and Eurodollars held by institution-only money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are based on monthly averages.
2. Currency outside the U.S. Treasury, Federal Reserve Banks, and, vaults of
commercial banks. Excludes the estimated amount of vault cash held by thrift
institutions to service their OCD liabilities.
3. Outstanding amount of U.S. dollar-denominated travelers checks of
nonbank issuers. Travelers checks issued by depository institutions are included
in demand deposits.
4. Demand deposits at commercial banks and foreign-related institutions other
than those due to domestic banks, the U.S. government, and foreign banks and
official institutions less cash items in the process of collection and Federal
Reserve float. Excludes the estimated amount of demand deposits held at
commercial banks by thrift institutions to service their OCD liabilities.
5. Consists of NOW and ATS balances at all depository institutions, credit
union share draft balances, and demand deposits at thrift institutions. Other
checkable deposits seasonally adjusted equals the difference between the seasonally adjusted sum of demand deposits plus OCD and seasonally adjusted demand
deposits. Included are all ceiling free "Super NOWs," authorized by the
Depository Institutions Deregulation committee to be offered beginning Jan. 5,
1983.
6. Sum of overnight RPs and overnight Eurodollars, money market fund
balances (general purpose and broker/dealer), MMDAs, and savings and small
time deposits, less the consolidation adjustment that represents the estimated
amount of demand deposits and vault cash held by thrift institutions to service
their time and savings deposits liabilities.
7. Sum of large time deposits, term RPs, and term Eurodollars of U.S.
residents, money market fund balances (institution-only), less a consolidation
adjustment that represents the estimated amount of overnight RPs and Eurodollars held by institution-only money market funds.
8. Savings deposits exclude MMDAs.
9. Smnall-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All individual retirement accounts (IRA) and
Keogh accounts at commercial banks and thrifts are subtracted from small time
deposits.
10. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
11. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
NOTE: Latest monthly and weekly figures are available from the Board's H.6
(508) release. Historical data are available from the Banking Section, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Monetary and Credit Aggregates
1.22
A15
B A N K DEBITS A N D DEPOSIT T U R N O V E R
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1987
Bank group, or type of customer
19841
19861
Jan.
Mar.
Apr.
May
June
Seasonally adjusted
DEBITS TO
Demand deposits 2
1 All insured banks
2
Major New York City banks
3
Other banks
4 ATS-NOW accounts 3
5 Savings deposits
Feb.
128,440.8
57,392.7
71,048.1
1,588.7
633.1
154,556.0
70,445.1
84,110.9
1,920.8
539.0
189,534.1
91,212.9
98,321.4
2,351.1
410.9'
210,574.2
99,357.1
111,217.1
2,255.7
459.2
211,169.4
98,712.3
112,457.1
2,306.0
477.7
217,019.7
104,224.5
112,795.2
2,344.6
468.6
224,603.0
107,159.2
117,443.7
2,384.7
528.0
222,774.5
106,599.1
116,175.4
2,425.1
508.9
212,202.0
100,320.9
111,881.1
2,437.0
568.2
434.4
1,843.0
268.6
15.8
5.0
496.5
2,168.9
301.8
16.7
4.5
561.8
2,460.6
327.4
16.8
3.1
580.3
2,426.4
345.5
13.4
2.9
594.7
2,461.0
357.0
13.5
2.9
613.8
2,707.8
358.0
13.6
2.8
627.0
2,711.5
368.5
13.6
3.1
613.0
2,660.3
359.3
13.9
2.9
594.9
2,713.7
349.9
14.0
3.3
DEPOSIT TURNOVER
7
8
9
10
Demand deposits 2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 3
Savings deposits 4
Not seasonally adjusted
DEBITS TO
Demand deposits 2
11
All insured banks
12
Major New York City banks
13
Other banks
14 ATS-NOW accounts 3
15 MMDA 5
16 Savings deposits
128,059.1
57,282.4
70,776.9
1,579.5
848.8
632.9
154,108.4
70,400.9
83,707.8
1,903.4
1,179.0
538.7
189,443.3
91,294.4
98,149.0
2,338.4
1,599.3
404.3
216,638.7
102,274.2
114,364.5
2,679.2
1,913.3
499.0
191,572.9
89,866.7
101,706.2
2,173.2
1,600.7
434.6
222,532.0
106,161.2
116,370.8
2,422.7
1,754.4
476.2
229,095.0
108,597.8
120,497.3
2,735.8
2,071.1
570.8
209,229.8
98,828.3
110,401.5
2,420.5
1,786.2
492.4
224,042.8
106,422.2
117,620.6
2,617.4
1,901.2
571.5
433.5
1,838.6
267.9
15.7
3.5
5.0
497.4
2,191.1
301.6
16.6
3.8
4.5
564.0
2,494.3
327.9
16.8
4.5
3.1
579.9
2,345.5
346.6
15.7
5.1
3.1
550.0
2,273.2
329.4
12.9
4.3
2.7
641.0
2,742.6
377.3
14.1
4.7
2.9
635.1
2,755.6
375.0
15.2
5.6
3.4
582.7
2,496.3
345.6
14.0
4.9
2.8
630.0
2,816.8
370.1
15.1
5.2
3.3
DEPOSIT TURNOVER
17
18
19
70
71
22
Demand deposits 2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 3
MMDA
Savings deposits 4
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 are
available beginning December 1978.
4. Excludes ATS and NOW accounts, MMDA and special club accounts, such
as Christmas and vacation clubs.
5. Money market deposit accounts.
NOTE. Historical data for demand deposits are available back to 1970 estimated
in part from the debits series for 233 SMSAs that were available through June
1977. Historical data for ATS-NOW and savings deposits are available back to
July 1977. Back data are available on request from the Banking Section, Division
of Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
These data also appear on the Board's G.6 (406) release. For address, see inside
front cover.
A16
1.23
DomesticNonfinancialStatistics • November 1987
LOANS A N D SECURITIES
All Commercial Banks 1
Billions of dollars; averages of Wednesday figures
1986
Sept.
1987
Nov.
Oct.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June'
July
Aug.
Seasonally adjusted
2
1 Total loans and securities
2 U.S. government securities
3 Other securities
4 Total loans and leases 2
5
Commercial and industrial . . . . .
6
Bankers acceptances held . . .
7
Other commercial and
industrial
8
U.S. addressees 4 .
9
Non-U.S. addressees
10
Real estate
11
Individual
12
Security
13
Nonbank financial
institutions
14
Agricultural
State and political
15
subdivisions
16
Foreign banks
17
Foreign official institutions
18
Lease financing receivables . . . .
19 All other loans
2,044.6
2,052.4
2,063.5
2,089.8
2,118.3
2,119.7
2,126.2
2,147.3
2,160.6
2,167.1
2,169.5'
2,189.1
294.9
204.2
1,545.4
517.3
6.6
299.6
199.8
1,553.0
520.0
6.7
304.1
197.9
1,561.5
525.7
6.4
309.9
196.9
1,583.0
541.4
6.4
316.3
190.2
1,611.8
554.1
6.8
315.2
193.8
1,610.7
553.8
6.8
314.3
195.5
1,616.4
551.7
6.2
315.8
197.2
1,634.3
553.9
6.5
320.1
197.6
1,642.9
555.9
6.8
316.9
198.5
1,651.7
558.0
6.8
319.8'
196.9
1,652.8'
555.5'
6.7
328.7
195.0
1,665.5
555.7
7.5
510.7
501.7
9.0
468.9
309.9
42.8
513.3
504.6
8.8
474.2
311.2
39.1
519.2
510.7
8.5
479.6
312.6
40.1
535.0
525.7
9.3'
489.0
314.2
38.7'
547.2
537.8
9.4'
499.2
314.9
37.7
546.9
537.9
9.0'
504.0
315.2
38.5
545.5
536.9'
8.6'
511.0
315.7
38.3
547.4
539.0'
8.4'
517.9
316.6
43.6
549.0
540.9'
8.1'
526.3
316.7
42.0
551.2
542.8
8.4
537.2
314.5
42.2
548.8'
540.6
8.3
544.1'
314.6'
41.7
548.1
540.0
8.1
551.4
316.9
44.0
34.9
32.7
35.5
32.4
34.9
32.2
35.2
31.8
35.7
31.4
34.7
30.8
35.0
30.0
35.4
29.8
35.4
29.9
33.9
29.9
31.9
30.0
30.9
30.2
60.0
10.1
6.0
21.1
41.8
59.3
10.0
6.0
21.8
43.4
58.7
10.0
5.9
22.0
39.9
57.9
10.4
5.8
22.2
36.4
57.8
10.6
5.9
22.1
42.4
57.2
10.3
6.1
22.2
38.0
56.9
9.7
6.7
22.3
38.9
56.0
9.9
6.7
22.6
41.9
55.2
9.9
5.8
22.9
43.1'
54.4
10.3
5.3
23.1
42.8
53.2
9.4
5.2
23.2
44.(y
52.6
9.5
5.1
23.3
46.1
Not seasonally adjusted
20 Total loans and securities
2
21 U.S. government securities
22 Other securities
23 Total loans and leases 2
24
Commercial and industrial
25
Bankers acceptances h e l d 3 . . .
26
Other commercial and
industrial
27
U.S. addressees 4 .
Non-U.S. addressees
28
Real estate
29
30
Individual
31
Security
32
Nonbank financial
institutions
Agricultural
33
State and political
34
subdivisions
Foreign banks
35
36
Foreign official institutions
Lease financing receivables . . . .
37
38
All other loans
2,042.3
2,044.0
2,064.2
2,105.2
2,123.7
2,121.6
2,127.8
2,148.4
2,157.9
2,166.8
2,164.5r
2,180.5
293.8
205.0
1,543.5
516.1
6.7
296.1
200.1
1,547.8
517.8
6.6
303.2
198.3
1,562.6
525.2
6.6
308.3
198.1
1,598.7
544.3
6.7
314.6
193.7
1,615.4
552.4
6.7
318.9
194.1
1,608.6
551.7
6.7
317.2
194.4
1,616.2
554.5
6.2
317.7
195.2
1,635.4
556.5
6.4
319.7
196.8
1,641.4
557.5
6.7
317.4
197.1
1,652.4
559.1
6.9
321.0'
194.8
1,648.7'
554.6'
6.8
327.6
195.3
1,657.7
552.7
7.4
509.4
500.2
9.2
469.9
310.8
41.3
511.2
502.1
9.1
475.1
312.3
37.8
518.5
509.5
9.1
480.7
313.7
40.4
537.6
528.8
8.8
489.9
317.8
41.0'
545.8
537.1
8.7
499.3
317.9
39.4
545.0
536.3
8.7
503.1
314.7
37.5
548.3
539.9
8.4
509.8
313.3
38.6
550.0
541.6
8.4
516.7
314.4
45.1
550.8
542.5'
8.3'
525.4
314.8
42.(f
552.3
543.7
8.6
536.8
313.2
43.0
547.8'
539.0'
8.8
544.3'
313.5'
40.9
545.3
536.8
8.5
551.5
316.7
41.5
35.6
33.7
35.6
33.1
35.4
32.3
36.3'
31.5
35.7
30.7
33.8
29.9
33.8
29.1
34.8
29.1
34.9
29.7
33.9
30.3
31.9
30.7
31.1
31.0
60.0
10.3
6.0
21.0
39.0
59.3
10.0
6.0
21.5
39.1
58.7
10.1
5.9
21.8
38.5
57.9
10.9
5.8
22.2
41.2
57.8
10.7
5.9
22.4
43.1
57.2
10.5
6.1
22.4
41.5
56.9
9.7
6.7
22.5
41.2
56.0
9.5
6.7
22.7
43.9
55.2
9.6
5.8
22.9
43.6'
54.4
10.0
5.3
23.2
43.2
53.2
9.4
5.2
23.1
42.0'
52.6
9.3
5.1
23.1
42.9
1. These data also appear in the Board's G.7 (407) release.
2. Excludes loans to commercial banks in the United States.
3. Includes nonfinancial commercial paper held.
4. United States includes the 50 states and the District of Columbia.
Commercial Banking Institutions
1.24
All
MAJOR N O N D E P O S I T F U N D S O F C O M M E R C I A L B A N K S 1
Monthly averages, billions of dollars
1987
1986
Source
1
2
3
4
5
Total nondeposit funds
Seasonally adjusted
Not seasonally adjusted
Federal funds, RPs, and other
borrowings from nonbanks
Seasonally adjusted
Not seasonally adjusted
Net balances due to foreign-related
institutions, not seasonally
adjusted
May
June
July
Aug.
160.9
161.0
169.6'
170.3'
165.9'
163.1'
158.5'
155.3'
164.1
164.2
170.3'
172.7'
171.2
171.3
169.6'
170.4'
167.7'
165.0'
166.1'
162.9'
165.4
165.5
-1.9
-7.6
-1.3
-15.6
67.1
51.5'
-22.2
66.4'
44.2
-17.7
64.5
46.8
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
143. V
142.4'
141.4'
140.4'
145.4'
146.9'
146.6'
146.7'
155.3'
154.8'
159.6'
162.3'
164.1'
166.5'
167.5'
166.7'
168.7'
167.7'
167.2'
168.8'
165.6'
165.7'
170.9'
170.4'
171.5'
174.2'
Apr.'
0.0
-24.3
-27.3
-21.8
-19.0
-15.6
-11.9
-6.2
-10.3
-29.2
74.0
44.8
-31.9
73.5
41.6
-28.7
70.8
42.1
-30.6
73.3
42.7
-26.1
71.5'
45.4'
-23.7
68.3
44.5'
-21.1
-23.0
70.5
47.5
4.9
67.9
72.7
4.6
68.2
72.9
6.9
68.7
75.6
11.6
70.8
82.5
10.5
75.0
85.5
11.8
72.9
84.7
14.9
71.1
86.0
12.7
72.6
85.3
15.5
75.4
90.9
13.7
77.1
90.8
14.6
77.1
91.7
16.4
77.4
93.8
96.4'
95.7'
97.9'
97.0'
98.1 R
99.7'
98.5'
98.6'
101.1'
100.6'
97.7'
100.4'
95.1'
97.4'
98.6
98.7
99.2'
100.0'
101.5'
98.7'
102.1'
98^
103.7
103.8
16.5
18.2
17.1
15.3
23.2
15.3
21.2
19.2
21.3
27.5
23.2
28.6
17.7
17.1
20.7
21.6
26.1
30.8
27.9
25.5
24.7
26.6
29.1
21.6
344.1
345.5
342.5
343.7
343.2
343.9
345.6
347.0
350.1
351.3
351.1
353.2
354.1
356.4
359.8
357.2
366.2
364.8
372.9
369.8
371.8
368.5
370.8
370.2
MEMO
6
7
8
9
10
11
12
13
14
15
16
17
Domestically chartered banks' net
positions with own foreign
branches, not seasonally
adjusted 4
Gross due from balances
Gross due to balances
Foreign-related institutions' net
positions with directly related
institutions, not seasonally
adjusted 5
Gross due from balances
Gross due to balances
Security RP borrowings
Seasonally adjusted
Not seasonally adjusted
U.S. Treasury demand balances
Seasonally adjusted
Not seasonally adjusted
Time deposits, $100,000 or more 8
Seasonally adjusted
Not seasonally adjusted
1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks. New
York investment companies majority owned by foreign banks, and Edge Act
corporations owned by domestically chartered and foreign banks.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars.
3. Other borrowings are borrowings on any instrument, such as a promissory
note or due bill, given for the purpose of borrowing money for the banking
business. This includes borrowings from Federal Reserve Banks and from foreign
66.C
44.9'
-15.6
68.4'
52.9
banks, term federal funds, overdrawn due from bank balances, loan RPs, and
participations in pooled loans.
4. Averages of daily figures for member and nonmember banks.
5. Averages of daily data.
6. Based on daily average data reported by 122 large banks.
7. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
8. Averages of Wednesday figures.
A18
DomesticNonfinancialStatistics • November 1987
1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Last-Wednesday-of-Month Series1
Billions of dollars
1986
1987
Account
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June r
July'
Aug.
2,183.2
471.9
282.8
189.1
26.0
1,685.3
141.2
1,544.1
517.2
476.2
312.8
237.8
2,227.3
475.4
287.3
188.0
28.1
1,723.8
154.7
1,569.1
524.9
481.8
314.1
248.2
2,314.3
479.6
292.6
187.0
27.8
1,807.0
168.9
1,638.1
568.2
497.5
320.4
252.0
2,284.8
482.2
296.1
186.1
26.4
1,776.3
160.1
1,616.2
551.1
499.9
317.0
248.3
2,279.4
484.7
298.8
185.9
29.0
1,765.6
156.7
1,608.9
551.5
503.5
314.7
239.2
2,279.2
486.2
299.5
186.7
25.2
1,767.8
154.3
1,613.5
555.3
510.7
313.1
234.4
2,306.2
492.5
305.1
187.5
23.3
1,790.3
151.8
1,638.5
555.5
519.0
315.2
248.9
2,318.9
495.4
307.0
188.4
21.4
1,802.1
160.4
1,641.7
558.2
527.4
314.8
241.3
2,313.4
493.2
303.4
189.8
20.2
1,800.0
150.9
1,649.1
558.0
539.1
312.6
239.5
2,324.3
497.7
308.2
189.4
20.4
1,806.2
157.5
1,648.7
551.8
547.3
314.5
235.2
2,342.2
501.7
312.7
189.0
20.0
1,820.5
162.5
1,658.0
551.6
552.7
317.2
236.6
203.5
31.6
23.5
66.2
227.0
32.2
22.2
86.5
273.7
41.2
25.7
111.3
214.4
33.4
23.7
74.5
206.3
28.4
23.5
71.4
203.8
31.1
22.9
68.1
209.7
29.8
24.0
74.5
230.8
37.9
25.1
81.3
213.1
33.8
24.2
74.4
207.1
32.8
24.4
68.6
209.3
37.6
24.6
65.6
33.1
49.0
38.3
47.9
43.3
52.3
34.0
48.8
33.0
50.1
32.7
49.0
33.9
47.5
37.2
49.3
31.1
49.7
31.6
49.6
31.4
50.0
A L L COMMERCIAL BANKING
INSTITUTIONS 2
1 Loans and securities
2
Investment securities
3
U.S. government securities
4
Other
5
Trading account assets
6
Total loans
7
Interbank loans
8
Loans excluding interbank
9
Commercial and industrial
10
Real estate
11
Individual
12
All other
13 Total cash assets
14
Reserves with Federal Reserve Banks.
15
Cash in vault
16
Cash items in process of collection . . .
17
Demand balances at U.S. depository
institutions
18
Other cash assets
19 Other assets
20 Total assets/total liabilities and capital....
21
22
23
24
25
26
27
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
198.6
202.2
224.8
201.3
201.1
202.1
204.0
208.7
203.8
189.0
190.7
2,585.3
2,656.5
2,812.8
2,700.5
2,686.8
2,685.2
2,719.9
2,758.3
2,730.4
2,720.4
2,742.2
1,847.1
548.8
516.0
782.2
383.3
175.7
179.2
1,900.2
596.3
522.9
781.1
397.4
180.0
178.9
2,018.0
691.1
535.0
791.9
414.5
199.6
180.6
1,898.3
577.8
532.3
788.2
432.7
188.0
181.5
1,895.5
569.2
535.9
790.3
425.6
184.6
181.2
1,899.6
568.8
539.7
791.2
414.9
188.7
181.9
1,919.5
590.7
535.1
793.6
422.7
195.2
182.5
1,939.1
596.9
538.6
803.6
435.6
200.3
183.3
1,923.4
578.2
535.0
810.1
428.3
201.3
177.4
1,924.6
573.7
536.0
814.9
424.0
201.1
170.7
1,926.4
572.6
535.2
818.6
435.1
209.2
171.4
MEMO
28 U.S. government securities (including
trading account)
29 Other securities (including trading account)
299.5
304.8
308.4
314.5
320.1
316.7
318.9
320.6
315.8
322.6
326.3
198.4
198.8
198.9
194.1
193.7
194.7
196.9
196.1
197.6
195.5
195.4
2,052.1
452.9
273.6
179.3
26.0
1,573.2
118.8
1,454.3
449.0
470.0
312.5
222.7
2,094.7
457.1
279.0
178.2
28.1
1,609.5
133.0
1,476.4
455.7
475.1
313.8
231.8
2,154.4
459.3
283.0
176.3
27.8
1,667.3
137.9
1,529.5
488.2
490.3
320.1
230.9
2,136.7
461.5
286.8
174.8
26.4
1,648.8
134.3
1,514.5
475.5
493.2
316.7
229.2
2,130.3
463.3
289.2
174.1
29.0
1,638.0
130.5
1,507.5
474.1
497.0
314.4
221.9
2,121.7
463.6
289.4
174.2
25.2
1,632.9
124.1
1,508.8
474.6
504.1
312.7
217.4
2,146.9
470.0
295.2
174.8
23.3
1,653.6
124.2
1,529.3
473.5
512.0
314.9
229.0
2,156.2
471.5
296.7
174.8
21.4
1,663.3
128.6
1,534.7
475.3
520.3
314.5
224.7
2,151.9
469.8
294.0
175.9
20.2
1,661.8
121.5
1,540.4
471.7
532.1
312.3
224.3
2,157.7
473.8
298.4
175.4
20.4
1,663.5
122.9
1,540.6
466.0
539.9
314.2
220.6
2,174.9
478.1
302.7
175.3
20.0
1,676.9
129.5
1,547.4
464.7
544.9
316.8
221.0
185.6
29.7
23.5
65.6
210.0
29.8
22.2
86.1
253.5
39.7
25.7
110.9
196.6
31.2
23.6
74.0
188.9
27.1
23.5
71.0
186.5
29.7
22.8
67.7
192.5
27.2
24.0
74.0
213.2
35.9
25.0
80.9
195.3
32.1
24.1
73.9
189.1
31.4
24.4
68.1
190.1
36.2
24.6
65.1
31.3
35.5
36.3
35.6
40.8
36.4
32.2
35.6
31.1
36.4
31.1
35.2
31.9
35.4
35.1
36.2
29.3
35.9
29.8
35.4
29.8
34.4
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 3
30 Loans and securities
31
Investment securities
32
U.S. Treasury securities
Other
33
34
Trading account assets
35
Total loans
36
Interbank loans
Loans excluding interbank
37
38
Commercial and industrial
39
Real estate
Individual
40
All other
41
42 Total cash assets
Reserves with Federal Reserve Banks.
43
44
Cash in vault
45
Cash items in process of collection . . .
46
Demand balances at U.S. depository
institutions
Other cash assets
47
141.0
141.6
165.0
141.5
144.0
143.4
144.4
143.1
134.4
121.8
121.5
49 Total assets/liabilities and capital
2,378.7
2,446.3
2,572.8
2,474.8
2,463.2
2,451.5
2,483.8
2,512.5
2,481.5
2,468.7
2,486.5
50
51
52
53
54
55
56
1,792.8
540.9
514.1
737.7
301.3
108.6
176.0
1,844.8
588.2
520.8
735.8
314.1
111.7
175.8
1,957.0
682.2
533.0
741.8
322.9
115.5
177.5
1,840.8
569.4
530.3
741.1
341.7
114.0
178.3
1,838.2
561.3
533.9
743.0
336.1
110.8
178.1
1,840.7
560.5
537.7
742.5
319.1
113.0
178.8
1,857.1
582.2
533.1
741.8
328.2
119.1
179.4
1,876.5
588.4
536.6
751.4
337.1
118.8
180.2
1,861.5
569.7
533.0
758.8
328.6
117.1
174.3
1,863.9
565.6
533.9
764.4
321.1
116.1
167.6
1,864.7
564.3
533.0
767.3
335.8
117.6
168.3
48 Other assets
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
1. Data have been revised because of benchmarking to new Call Reports and
new seasonal factors beginning July 1985. Back data are available from the
Banking Section. Board of Governors of the Federal Reserve System, Washington, D.C., 20551.
Figures are partly estimated. They include all bank-premises subsidiaries and
other significant majority-owned domestic subsidiaries. Loan and securities data
for domestically chartered commercial banks are estimates for the last Wednesday of the month based on a sample of weekly reporting banks and quarter-end
condition report data. Data for other banking institutions are estimates made for
the last Wednesday of the month based on a weekly reporting sample of
foreign-related institutions and quarter-end condition reports.
2. Commercial banking institutions include insured domestically chartered
commercial banks, branches and agencies of foreign banks, Edge Act and
Agreement corporations, and New York State foreign investment corporations.
3. Insured domestically chartered commercial banks include all member banks
and insured nonmember banks.
Weekly Reporting Commercial Banks
A19
1.26 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1.4 Billion or More on
December 31, 1982, Assets and Liabilities
Millions of dollars, Wednesday figures
1987
July 1
122,818
1 Cash and balances due from depository institutions
1,012,496"
2 Total loans, leases and securities, net
July 8
96,723
July 15
108,152
9%,034' 1,003,109"
July 22
July 29
Aug. 5
Aug. 12
Aug. 19
%,111
%,917'
99,746
95,270
98,164
988,267'
992,805'
997,855
999,692
998,601
3 U.S. Treasury and government agency
4
Trading acount
5
Investment account, by maturity
6
One year or less
7
Over one through five years
8
Over five years
9 Other securities
10
Trading account
11
Investment account
12
States and political subdivisions, by maturity
13
One year or less
14
Over one year
15
Other bonds, corporate stocks, and securities
16 Other trading account assets
109,325
12,577
96,748
16,772
42,466
37,511
67,814'
3,922
63,892 r
49,853
5,486
44,367
14,039'
3,468
110,947
13,253
97,695
16,722
42,684
38,288
66,767
2,873
63,894
49,831
5,545
44,286
14,063
3,034
114,002
15,890
98,112
16,230
42.995
38,888
66,874
2,890
63,984
49,856
5,602
44,254
14,127
2,789
114,942
15,520
99,421
16,291
43,928
39,202
67,121
3,001
64,120
49,945
5,597
44,348
14,175
2,432
113,702
14,359
99,343
16,096
44,254
38,993
67,544
3,335
64,209
49,983
5,691
44,292
14,226
2,697
118,689
18,513
100,176
16,490
44,874
38,812
67,162
2,960
64,203
49,790
5,764
44,026
14,413
2,748
116,954
16,111
100,842
16,704
45,352
38,787
67,351
3,083
64,267
49,846
5,555
44,290
14,421
2,999
118,413
17,200
101,212
16,744
45,606
38,863
67,582
3,209
64,373
49,765
5,520
44,245
14,608
2,735
17 Federal funds sold 1
18
To commercial banks
19
To nonbank brokers and dealers in securities
20
To others
21 Other loans and leases, gross
22
Other loans, gross
23
Commercial and industrial
24
Bankers acceptances and commercial paper
25
All other
26
U.S. addressees
27
Non-U.S. addressees
74,688
44,429
22,701
7,558
795,825'
776,976'
277,198'
2,449
274,749'
271,721'
3,028'
63,448
38,716
19,102
5,630
790,358'
771,477'
274,032'
2,281
271,751'
268,748'
3,002'
59,563
34,480
18,184
6,899
782,901'
763,961'
271,1%'
2,247
268,949'
265,997'
2,952'
63,556
36,710
19,721
7,125
783,9%'
765,037'
269,419'
2,275
267,145'
264,088'
3,056
62,858
36,680
18,646
7,532
785,269
766,305
269,668
2,375
267,292
264,201
3,091
66,323
39,612
21,305
5,406
784,906
765,936
269,618
2,350
267,268
264,218
3,050
64,290
37,725
18,923
7,643
784,464
765,482
269,141
2,226
266,915
263,818
3,0%
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
230,578'
141,079'
51,620
21,771
5,168
24,681
15,292'
5,660
32,128'
2,986
20,433'
18,849'
4,502
34,123'
757,200'
130,309"
230,616'
140,944'
51,885
22,061
5,173
24,651
14,292
5,619
32,186'
2,938
18,966'
18,881'
4,518
34,004'
751,837'
126,212'
69,700
42,651
18.996
8,053
788,326'
769,407'
273,137'
2,247
270,890'
267,8%'
2,994'
231,000'
140,976'
51,108
22,261
4,626
24,221
14,304
5,579
32,147'
2,980
18,176'
18,918'
4,528
34,054'
749,744'
126,766'
231,124'
141,139
49,047
21,576
4,634
22,837
13,461
5,590
31,948
3,071
17,385'
18,940'
4,525
34,166'
744,210'
123,830
231,860'
141,670
49,863'
21,902'
4,927
23,034'
14,432
5,598
31,890"
2,867
17,439'
18,959'
4,542
34,147'
745,307'
119,716'
232,214
141,688
50,551
22,395
4,906
23,250
13,711
5,629
31,698
2,938
18,208
18,964
4,494
34,378
746,397
121,460
232,985
141,822
49.866
22,247
4,446
23,172
13,160
5,654
31,690
2,838
18,303
18,%9
4,511
34,329
746,066
119,024
234,074
142,207
49,305
22,060
4,141
23,104
13,469
5,600
31,667
2,802
17,218
18,982
4,529
34,356
745,580
121,088
1,265,623' 1,218,969" 1,238,028' 1,208,208' 1,209,439" 1,219,060
224,498
222,834'
215,240"
215,380
240,069"
265,626'
172,479
174,041'
166,312"
167,504'
185,952'
203,012'
5,567
5,092
5,192
5,437
6,095
6,878
4,461
2,698
2,768
2,400
4,294
1,708
24,590
23,869'
23,159"
23,114'
27,322'
33,062'
6.511
6,501
7,032
6,210
6,342
7,151
1,377
1,028
1,014
1,023
1,105
1,213
9,606
9.512
9,763
9,691
8,957
12,601
61,098
61,794
59,387
59,826
60,439
60,909
528,382
527,258
526,104'
526,663
530,220
527,345'
490,754
490,644
489,016'
489,569
493,120
489,655'
26,253
25,488
25,664
25,815
25,788
26,266
922
891
896
915
928
908
9,665
9,437
9,700
9,541
9,602
9,678
788
797
828
823
783
837'
249,426'
247,313
247,027
247,663
251,358
251,997'
0
0
0
982
21
0
9,131
11,783
19,655
21,062
20,594
19,006
234,262
238,182
231,681
226,600
232,991'
228,832'
r
81,703
85,603'
79,569"
82,475'
84,157
80,902'
1,213,986
1,217,853
216,703
171,530
4,616
2,695
22.867
5,443
1,061
8,490
60,818
526,682
490,180
25,546
892
9,268
796
249,108
785
10,545
237,778
83,670
219,009
170,586
5,097
4,039
23,003
5,844
978
9,462
60,770
526,371
489,750
25,611
882
9,335
794
251,081
0
15,279
235,802
83,958
1,190,034' 1,142,642' 1,161,654' 1,132,007' 1,133,362' 1,142,566
Real estate loans
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other
Lease financing receivables
LESS: Unearned income
Loan and lease reserve
Other loans and leases, net
All other assets
44 Total assets
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits
Nontransaction balances
Individuals, partnerships and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Foreign governments, official institutions and banks . . .
Liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money
Other liabilities and subordinated note and debentures .
65 Total liabilities
66 Residual (total assets minus total liabilities) 3
MEMO
67
68
69
70
71
72
73
Total loans and leases (gross) and investments adjusted
Total loans and leases (gross) adjusted 4
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates—total 5
Commercial and industrial
Other
Nontransaction savings deposits (including MMDAs)
.
1,136,981
1,141,189
75,59c
76,327'
76,374'
76,201'
76,077"
76,494
77,006
76,664
984,920'
804,312'
163,581'
1,785
973,778'
793,029'
165,580'
1,723
1,126
598
231,266
976,779'
793,114'
165,645'
1,690
1,124
566
232,795
970,902'
786,408'
165,003'
1,719
1,139
580
229,503
972,883'
788,940'
164,876'
1,682
1,127
556
228,913
977,652
789,052
164,738
1,660
1,105
556
229,602
976,673
789,370
164,273
1,652
1,097
555
229,416
977,700
788,969
164,340
1,702
1,158
545
229,053
1,222
564
232,878
1. Includes securities purchased under agreements to resell.
2. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31,1977, see table 1.13.
3. This is not a measure of equity capital for use in capital-adequacy analysis or
for other analytic uses.
4. Exclusive of loans and federal funds transactions with domestic commercial
banks.
5. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
A20
1.28
DomesticNonfinancialStatistics • November 1987
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures except as noted
1987
Account
July 1
1 Cash balances due from depository institutions
2 Total loans, leases and securities, net1
Securities
3 U.S. Treasury and government agency
4 Trading account 2
5
Investment account, by maturity
6
One year or less
7
Over one through five years
8
Over five years
9 Other securities
10 Trading account 2
11
Investment account
12
States and political subdivisions, by maturity
13
One year or less
14
Over one year
15
Other bonds, corporate stocks and securities
16 Other trading account assets 2
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
Loans and leases
Federal funds sold 3
To commercial banks
To nonbank brokers and dealers in securities
To others
Other loans and leases, gross
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other
Lease financing receivables
LESS: Unearned income
Loan and lease reserve
Other loans and leases, net
All other assets 4
44 Total assets
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
Deposits
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits
(ATS, NOW, Super NOW, telephone transfers)
Nontransaction balances
Individuals, partnerships and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Foreign governments, official institutions and banks
Liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money
Other liabilities and subordinated note and debentures
65 Total liabilities
66 Residual (total assets minus total liabilities)6
July 8
July 15
July 22
July 29
Aug. 5
Aug. 12
Aug. 19
Aug. 26
38,582
22,074
29,764
23,823
23,208
23,543
21,626
24,404
26,054
217,606'
208,595
213,756
206,393
211,225
208,496
211,188
211,169
216,115
0
0
13,751
1,642
5,125
6,984
0
0
16,179
13,474
984
12,490
2,705
0
0
0
13,783
1,673
5,093
7,016
0
0
16,228
13,506
1,021
12,485
2,722
0
0
0
13,844
1,632
5,253
6,959
0
0
16,260
13,510
1,006
12,504
2,750
0
0
0
13,948
1,678
5,372
6,897
0
0
16,294
13,517
939
12,578
2,777
0
0
0
13,914
1,700
5,372
6,840
0
0
16,401
13,593
1,061
12,532
2,808
0
0
0
13,985
1,744
5,356
6,885
0
0
16,319
13,541
960
12,580
2,778
0
0
0
14,131
1,874
5,387
6,870
0
0
16,516
13,662
961
12,701
2,853
0
0
0
14,214
1,902
5,542
6,771
0
0
16,571
13,688
979
12,709
2,882
0
0
0
13,753
1,935
4,988
6,830
0
0
16,537
13,674
1,008
12,666
2,862
0
30,713
10,988
14,873
4,853
172,783'
168,016'
59,610
556
59,054
58,560
494
43,662
20,884
21,527
12,126
3,022
6,380
6,502'
275
7,758
800
6,998
4,767
1,493
14,327
156,963'
62,888'
23,829
9,482
11,146
3,201
170,515
165,733
58,713
465
58,248
57,754
493
43,560
20,895
21,007
11,607
3,090
6,309
6,186
276
7,831
788
6,477
4,782
1,502
14,258
154,754
61,445
30,135
13,908
11,279
4,948
169,293
164,502
58,496
503
57,992
57,521
472
43,423
20,968
20,322
11,294
2,744
6,284
6,481
250
7,869
838
5,855
4,791
1,512
14,264
153,518
63,727
24,557
10,121
10,003
4,433
167,354
162,530
57,932
437
57,495
57,045
449
43,484
21,046
19,696
11,200
2,636
5,861
5,698
252
7,860
871
5,689
4,825
1,511
14,250
151,594
62,759
28,124
12,010
11,240
4,874
168,542
163,732
57,142
479
56,664
56,214
450
44,176
21,247
19,887
10,883
2,896
6,108
6,895
289
7,838
713
5,544
4,811
1,519
14,237
152,787
58,424
26,954
11,054
10,711
5,189
167,031
162,204
56,538
568
55,970
55,487
482
44,076
21,244
19,700
10,698
2,789
6,214
6,012
320
7,769
814
5,730
4,828
1,497
14,297
151,237
62,522
30,039
13,377
13,172
3,490
166,319
161,478
56,553
478
56,075
55,646
428
44,045
21,371
19,240
10,704
2,362
6,173
5,577
321
7,784
687
5,900
4,841
1,507
14,310
150,502
58,422
29,994
13,439
10,863
5,692
166,202
161,359
56,408
421
55,987
55,497
490
44,248
21,487
18,882
10,851
1,941
6,090
5,857
300
7,784
659
5,733
4,843
1,514
14,299
150,389
60,911
32,910
14,970
11,060
6,880
168,737
163,880
56,415
426
55,990
55,508
481
44,226
21,553
20,202
11,084
3,038
6,081
6,481
318
7,769
845
6,071
4,857
1,518
14,304
152,914
55,943
319,077'
292,114
307,248
292,976
292,858
294,560
291,237
296,484
298,112
80,738'
55,558'
1,197
176
11,113
5,917
1,024
5,752
55,983'
38,576'
877
476
5,547
5,379
879
4,249
66,458
46,043
1,591
825
8,181
5,113
975
3,730
57,165
39,358
867
411
5,615
5,156
834
4,924
55,828
37,324
674
537
5,761
5,928
871
4,732
57,563
39,190
703
889
5,748
5,318
1,222
4,493
53,548
37,424
660
464
5,883
4,320
921
3,875
58,174
40,814
719
691
5,891
4,716
842
4,501
55,076
36,296
708
393
6,505
5,550
1,175
4,448
8,090
100,088
91,354
6,790
25
1,473
447
75,150'
0
4,563
70,587'
33,618
8,120
99,749
90,836
6,975
58
1,470
410
74,253'
0
4,727
69,526'
32,014
8,037
101,245
92,450
6,828
59
1,500
407
78,089
0
4,536
73,553
31,460
8,007
99,689
90,915
6,795
60
1,512
406
73,688
0
4,799
68,889
32,594
7,932
99,534
90,709
6,883
56
1,478
408
73,346
900
2,594
69,852
34,477
8,117
100,446
91,676
6,824
55
1,499
392
74,631
0
1,958
72,673
31,801
7,976
99,604
90,815
6,868
56
1,475
390
74,885
725
2,419
71,741
32,977
8,011
99,859
91,067
6,800
57
1,549
386
75,135
0
3,875
71,260
33,180
7,956
99,675
90,891
6,746
60
1,583
395
77,091
1,814
3,844
71,433
36,315
297,685'
270,119
285,289
271,143
271,116
272,558
268,989
274,360
276,112
21,392
21,994
21,959
21,833
21,741
22,002
22,248
22,124
22,000
210,313'
180,383'
35,883
203,266
173,254
36,914
204,330
174,226
36,910
200,833
170,591
36,998
204,088
173,774
36,848
202,538
172,234
37,387
202,924
172,277
36,856
202,692
171,907
37,081
205,884
175,594
36,931
MEMO
67 Total loans and leases (gross) and investments adjusted •
68 Total loans and leases (gross) adjusted
69 Time deposits in amounts of $100,000 or more
1. Excludes trading account securities.
2. Not available due to confidentiality.
3. Includes securities purchased under agreements to resell.
4. Includes trading account securities.
5. Includes federal funds purchased and securities sold under agreements to
repurchase.
6. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
7. Exclusive of loans and federal funds transactions with domestic commercial
banks.
NOTE. These data also appear in the Board's H.4.2 (504) release. For address,
see inside front cover.
Weekly Reporting Commercial Banks
1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS 1
Liabilities
A21
Assets and
Millions of dollars, Wednesday figures
1987
Account
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
Cash and due from depository institutions . . .
Total loans and securities
U.S. Treasury and govt, agency s e c u r i t i e s . . .
Other securities.
Federal funds sold
To commercial banks in the United States .
To others
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial
paper
All other
U.S. addressees
Non-U.S. addressees
To financial institutions
Commercial banks in the United States..
Banks in foreign countries
Nonbank financial institutions
To foreign govts, and official institutions . .
For purchasing and carrying securities
All other
Other assets (claims on nonrelated parties) . .
Net due from related institutions
Total assets
Deposits or credit balances due to other
than directly related institutions
Transaction accounts and credit balances .
Individuals, partnerships, and
corporations
Other
Nontransaction accounts
Individuals, partnerships, and
corporations
Other
Borrowings from other than directly
related institutions
Federal funds purchased 5
From commercial banks in the
United States
From others
Other liabilities for borrowed money
To commercial banks in the
United States
To others
Other liablities to nonrelated parties
Net due to related institutions
Total liabilities
July 1
July 8
July 15
July 22
July 29
Aug. 5
Aug. 12
Aug. 19
Aug. 26
9,582
94,026
6,612
8,306 r
6,601
6,003
598
72,507'
46,175
10,499'
91,277 r
6,462
8,317'
5,089
4,544
545
71,409'
45,576 r
10,508'
94,152'
6,527
8,312'
7,267
6,649
618
72,046'
45,525'
10,492
94,514'
6,801
8,280'
7,651
7,024
627
71,782'
45,528'
10,399
94,826
6,754
8,276'
7,937
7,124
812
71,859'
45,762
10,301
92,238
6,946
8,218
5,935
4,978
957
71,139
46,390
10,746
93,722
6,860
8,211
7,499
6,499
1,000
71,152
46,611
10,569
93,771
6,977
8,216
6,936
5,664
1,272
71,640
46,576
11,252
95,251
6,853
8,069
9,186
7,938
1,248
71,143
46,101
3,241
42,933
40,118
2,815
16,988'
13,311
1,094'
2,583
342
2,860
6,142
26,835
17,905
148,348
3,092
42,484'
39,476'
3,008
17,116'
13,594
958'
2,564
333
2,304
6,080
27,053'
17,589
146,418'
3,232
42,292'
39,499'
2,794
17,628'
13,967
1,035'
2,626
410
2,259
6,223
27,141'
18,283
150,084'
3,323
42,204'
39,543'
2,661
17,424'
13,850
893'
2,680
287
2,155
6,388
27,068'
16,152
148,226'
3,603
42,159
39,491
2,668
17,333'
13,772
957'
2,604
277
2,019
6,468
26,974
15,934'
148,133'
3,751
42,639
40,048
2,590
16,070
12,526
923
2,622
265
2,022
6,392
27,351
17,648
147,538
3,783
42,828
40,312
2,515
15,877
12,245
996
2,635
370
1,910
6,385
27,735
18,560
150,763
3,935
42,640
40,130
2,510
16,088
12,407
983
2,698
371
2,275
6,331
27,806
17,211
149,357
3,856
42,245
39,788
2,458
15,713
12,102
951
2,660
362
2,265
6,701
27,866
16,843
151,212
42,184
3,271
42,132
3,183
42,142
3,667
41,810
3,245
41.95C
3,024'
42,637
3,286
43,005
3,376
42,609
3,322
43,110
3,414
1,967
1,304
38,913
2,016
1,167
38,948
2,015
1,652
38,474
2,032
1,212
38,565
1,992
1,032'
38,926
2,266
1,020
39,351
2,185
1,191
39,629
2,160
1,162
39,287
2,187
1,227
39,696
31,257r
7,655 r
31,465r
7,484'
31,201r
7,273'
31,140'
7,426'
31,646
7,280
32,019
7,332
32,198
7,430
31,948
7,339
32,230
7,466
59,054
27,046
58,802
27,389
60,717
29,515
58,176
26,973
57,345
25,432
58,072
27,235
58,297
27,999
56,383
26,739
57,000
27,201
16,649
10,397
32,008
16,110
11,280
31,412
19,516
9,999
31,201
14,755
12,218
31,202
13,508
11,924
31,913
14,982
12,253
30,836
16,231
11,767
30,298
14,720
12,019
29,644
15,931
11,271
29,798
26,220
5,788
30,186
16,924
148,348
26,169
5,243
30,395'
15,089'
146,418'
26,093
5,108
30,399
16,826'
150,084'
25,185
6,017
30,308'
17,932'
148,226'
26,135
5,778
30,544'
18,294
148,133'
25,551
5,285
31,047
15,782
147,538
24,434
5,864
31,732
17,729
150,763
23,941
5,703
32,193
18,172
149,357
23,984
5,814
31,212
19,890
151,212
74,712
59,794 r
73,139'
58,36c
73,536'
58,697'
73,64c
58,559'
73,930
58,899^
74,734
59,570
74,978
59,906
75,699
60,505
75,211
60,289
MEMO
41 Total loans (gross) and securities adjusted 6 . .
42 Total loans (gross) ajdusted 6
1. Effective Jan. 1, 1986, the reporting panel includes 65 U.S. branches and
agencies of foreign banks that include those branches and agencies with assets of
$750 million or more on June 30,1980, plus those branches and agencies that had
reached the $750 million asset level on Dec. 31, 1984.
2. Includes securities purchased under agreements to resell.
3. Includes credit balances, demand deposits, and other checkable deposits.
4. Includes savings deposits, money market deposit accounts, and time deposits.
5. Includes securities sold under agreements to repurchase.
6. Exclusive of loans to and federal funds sold to commercial banks in the
United States.
A22
DomesticNonfinancialStatistics • November 1987
1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations1
Billions of dollars, estimated daily-average balances, not seasonally adjusted
Commercial banks
Type of holder
1 All holders—Individuals, partnerships, and
corporations
2
3
4
5
6
Financial business
Nonfinancial business
Consumer
Foreign
Other
1987
1986
1982
Dec.
1983
Dec.
1984
Dec.
1985
Dec. 5 4
Mar.
June
Sept.
Dec.
Mar.
June p
291.8
293.5
302.7
321.0
307.4
322.4
333.6
363.6
335.9
340.2
35.4
150.5
85.9
3.0
17.0
32.8
161.1
78.5
3.3
17.8
31.7
166.3
81.5
3.6
19.7
32.3
178.5
85.5
3.5
21.2
31.8
166.6
84.0
3.4
21.6
32.3
180.0
86.4
3.0
20.7
35.9
185.9
86.3
3.3
22.2
41.4
202.0
91.1
3.3
25.8
35.9
183.0
88.9
2.9
25.2
36.6
187.2
90.1
3.2
23.1
Weekly reporting banks
1986
1982
Dec.
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
1983
Dec.
1987
1985
Dec. 3 ' 4
Mar.
June
Sept.
Dec.
Mar.
June
144.2
146.2
157.1
168.6
159.7
168.5
174.7
195.1
178.1
179.3
26.7
74.3
31.9
2.9
8.4
24.2
79.8
29.7
3.1
9.3
25.3
87.1
30.5
3.4
10.9
25.9
94.5
33.2
3.1
12.0
25.5
86.8
32.6
3.3
11.5
25.7
93.1
34.9
2.9
11.9
28.9
94.8
35.0
3.2
12.8
32.5
106.4
37.5
3.3
15.4
28.7
94.4
36.8
2.8
15.5
29.3
94.8
37.5
3.1
14.6
1. Figures include cash items in process of collection. Estimates of gross
deposits are based on reports supplied by a sample of commercial banks. Types
of depositors in each category are described in the June 1971 BULLETIN, p. 466.
Figures may not add to totals because of rounding.
2. Beginning in March 1984, these data reflect a change in the panel of weekly
reporting banks, and are not comparable to earlier data. Estimates in billions of
dollars for December 1983 based on the new weekly reporting panel are: financial
business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; other
9.5.
3. Beginning March 1985, financial business deposits and, by implication, total
gross demand deposits have been redefined to exclude demand deposits due to
1984
Dec. 2
thrift institutions. Historical data have not been revised. The estimated volume of
such deposits for December 1984 is $5.0 billion at all insured commercial banks
and $3.0 billion at weekly reporting banks.
4. Historical data back to March 1985 have been revised to account for
corrections of bank reporting errors. Historical data before March 1985 have not
been revised, and may contain reporting errors. Data for all commercial banks for
March 1985 were revised as follows (in billions of dollars): all holders, - . 3 ;
financial business, - . 8 ; nonfinancial business, - . 4 ; consumer, .9; foreign, .1;
other, - . 1 . Data for weekly reporting banks for March 1985 were revised as
follows (in billions of dollars): all holders, - . 1 ; financial business, - . 7 ;
nonfinancial business, - . 5 ; consumer, 1.1; foreign, .1; other, - . 2 .
Financial Markets
A23
1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1987
1982
Dec.
Instrument
1983
Dec.
1984
Dec.
1985
Dec.
1986
Dec.
Feb.
Mar.
Apr.
May
June
July
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
6
Financial companies 3
Dealer-placed paper
Total
Bank-related (not seasonally
adjusted)
Directly placed paper
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies
166,436
187,658
237,586
300,899
331,016
336,677
338,797
346,769
354,249
348,741
348,247
34,605
44,455
56,485
78,443
100,207
102,939
102,889
103,957
105,397
108,691
107,709
2,516
2,441
2,035
1,602
2,265
2,174
2,116
2,307
2,429
2,430
2,311
84,393
97,042
110,543
135,504
152,385
158,955
159,333
163,421
169,225
161,921
162,185
32,034
47,437
35,566
46,161
42,105
70,558
44,778
86,952
40,860
78,424
45,722
74,784
46,634
76,575
48,604
79,391
48,401
79,627
47,862
78,129
46,354
78,353
Bankers dollar acceptances (not seasonally adjusted) 7
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
79,543
78,309
78,364
68,413
64,974
65,144
66,125
66,660
67,765
69,622
68,495
10,910
9,471
1,439
9,355
8,125
1,230
9,811
8,621
1,191
11,197
9,471
1,726
13,423
11,707
1,716
11,828
10,006
1,821
12,294
10,516
1,730
11,118
9,721
1,396
11,201
9,569
1,631
11,234
9,661
1,573
10,664
9,630
1,035
1,480
949
66,204
418
729
67,807
0
671
67,881
0
937
56,279
0
1,317
50,234
0
1,230
52,087
0
1,453
52,255
0
1,519
54,024
0
1,547
55,017
0
1,717
56,671
0
1,463
56,367
17,683
16,328
45,531
15,649
16,880
45,781
17,845
16,305
44,214
15,147
13,204
40,062
14,670
12,960
37,344
14,615
12,876
37,654
14,711
13,083
38,159
15,095
13,826
37,800
15,361
14,028
38,376
16,179
14,161
39,281
17,431
14,659
36,405
1. Effective Dec. 1, 1982, there was a break in the commercial paper series.
The key changes in the content of the data involved additions to the reporting
panel, the exclusion of broker or dealer placed borrowings under any master note
agreements from the reported data, and the reclassification of a large portion of
bank-related paper from dealer-placed to directly placed.
2. Correction of a previous misclassification of paper by a reporter has created
a break in the series beginning December 1983. The correction adds some paper
to nonfinancial and to dealer-placed financial paper.
3. Institutions engaged primarily in activities such as, but not limited to,
commercial savings, and mortgage banking; sales, personal, and mortgage financing; factoring, finance leasing, and other business lending; insurance underwriting; and other investment activities.
4. Includes all financial company paper sold by dealers in the open market.
5. As reported by financial companies that place their paper directly with
investors.
6. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
7. Beginning October 1984, the number of respondents in the bankers acceptance survey were reduced from 340 to 160 institutions—those with $50 million or
more in total acceptances. The new reporting group accounts for over 95 percent
of total acceptances activity.
1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum
Average
rate
Effective Date
10.50
10.00
9.50
9.00
8.50
1986—July 11
Aug. 20
8.00
7.50
1987—Apr. 1
1986—May 1.
15.
7.75
8.00
8.25
NOTE. These data also appear in the Board's H.15 (519) release. For address,
see inside front cover.
1985—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
10.61
10.50
10.50
10.50
10.31
9.78
9.50
9.50
9.50
9.50
9.50
9.50
1986—Jan. .
Feb.
Mar.
Apr.
9.50
9.50
9.10
8.83
1986—May .
June
July .
Aug.
Sept.
Oct. .
Nov.
Dec.
1987—Jan. .
Feb.
Mar.
Apr.
May .
June
July .
Aug.
A24
1.35
DomesticNonfinancialStatistics • November 1987
I N T E R E S T R A T E S M o n e y and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1987
Instrument
1984
1985
1987, week ending
1986
May
June
July
Aug.
July 31
Aug. 7
Aug. 14
Aug. 21
Aug. 28
MONEY MARKET RATES
1 Federal funds 1,2
2 Discount widow borrowing • '
Commercial paper •
3
1-month
4
5 6-month
Finance paper, directly placed •
6
7
8
6-month
Bankers acceptances 6
9
3-month
10
6-month
Certificates of deposit, secondary market 7
11
3-month
1?
13
14 Eurodollar deposits. 3-month
U.S. Treasury bills 5
Secondary market 9
15
3-month
16
1-year
17
Auction average
18
19
1-year
20
10.22
8.80
8.10
7.69
6.80
6.33
6.85
5.50
6.73
5.50
6.58
5.50
6.73
5.50
6.63
5.50
6.75
5.50
6.58
5.50
6.74
5.50
6.76
5.50
10.05
10.10
10.16
7.94
7.95
8.01
6.62
6.49
6.39
6.83
6.93
7.04
6.86
6.92
7.00
6.57
6.65
6.72
6.62
6.71
6.81
6.56
6.65
6.75
6.63
6.74
6.82
6.59
6.68
6.76
6.60
6.67
6.77
6.64
6.72
6.83
9.97
9.73
9.65
7.91
7.77
7.75
6.58
6.38
6.31
6.78
6.74
6.47
6.80
6.77
6.50
6.53
6.48
6.35
6.56
6.49
6.34
6.53
6.48
6.33
6.61
6.52
6.34
6.53
6.46
6.32
6.51
6.40
6.33
6.56
6.55
6.36
10.14
10.19
7.92
7.96
6.39
6.29
6.91
7.03
6.83
6.91
6.59
6.65
6.64
6.75
6.62
6.71
6.65
6.73
6.58
6.67
6.61
6.72
6.69
6.83
10.17
10.37
10.68
10.73
7.97
8.05
8.25
8.28
6.61
6.52
6.51
6.71
6.81
6.99
7.24
7.25
6.84
6.94
7.15
7.11
6.60
6.70
6.87
6.87
6.63
6.75
7.02
6.91
6.58
6.72
6.94
6.90
6.65
6.78
7.04
6.94
6.58
6.70
6.96
6.83
6.61
6.72
6.98
6.86
6.65
6.77
7.05
6.91
9.52
9.76
9.92
7.48
7.65
7.81
5.98
6.03
6.08
5.66
6.05
6.52
5.67
5.99
6.35
5.69
5.76
6.24
6.04
6.15
6.54
5.94
6.10
6.40
5.87
6.10
6.49
5.94
6.05
6.47
6.05
6.18
6.53
6.24
6.25
6.65
9.57
9.80
9.91
7.49
7.66
n.a.
5.97
6.02
n.a.
5.75
6.11
6.56
5.69
5.99
6.54
5.78
5.86
6.22
5.96
6.15
n.a.
6.14
6.20
n.a.
5.96
6.15
6.52
5.93
6.14
n.a.
5.97
6.12
n.a.
6.12
6.16
n.a.
10.89
11.65
11.89
12.24
12.40
12.44
12.48
12.39
8.43
9.27
9.64
10.13
10.51
10.62
10.97
10.79
6.46
6.87
7.06
7.31
7.55
7.68
7.85
7.80
7.00
7.76
8.02
8.26
8.47
8.61
n.a.
8.78
6.80
7.57
7.82
8.02
8.27
8.40
n.a.
8.57
6.68
7.44
7.74
8.01
8.27
8.45
n.a.
8.64
7.03
7.75
8.03
8.32
8.59
8.76
n.a.
8.97
6.88
7.62
7.91
8.18
8.45
8.62
n.a.
8.86
6.96
7.69
8.02
8.30
8.56
8.75
n.a.
8.98
6.93
7.67
7.93
8.24
8.51
8.68
n.a.
8.90
7.01
7.73
7.98
8.30
8.55
8.71
n.a.
8.92
7.16
7.89
8.13
8.41
8.67
8.85
n.a.
9.04
11.99
10.75
8.14
8.79
8.63
8.70
8.97
8.89
8.99
8.88
8.92
9.04
9.61
10.38
10.10
8.60
9.58
9.11
6.95
7.76
7.32
7.61
8.78
8.00
7.48
8.68
7.79
7.18
8.37
7.72
7.24
8.31
7.81
7.20
8.30
7.73
7.30
8.40
7.86
7.20
8.25
7.79
7.25
8.30
7.81
7.20
8.30
7.80
13.49
12.71
13.31
13.74
14.19
12.05
11.37
11.82
12.28
12.72
9.71
9.02
9.47
9.95
10.39
9.82
9.33
9.59
9.83
10.51
9.87
9.32
9.65
9.98
10.52
9.92
9.42
9.64
10.00
10.61
10.24
9.67
9.86
10.20
10.80
10.04
9.56
9.77
10.10
10.74
10.13
9.65
9.84
10.10
10.84
10.12
9.63
9.87
10.21
10.76
10.13
9.68
9.87
10.21
10.77
10.14
9.70
9.86
10.19
10.82
13.81
12.06
9.61
10.05
10.05
10.17
10.37
10.44
10.45
10.24
10.34
10.42
11.59
4.64
10.49
4.25
8.76
3.48
8.41
3.02
8.31
2.92
8.25
2.83
8.32
2.69
8.18
2.78
8.30
2.78
8.28
2.66
8.33
2.68
8.38
2.64
CAPITAL MARKET RATES
U.S. Treasury notes and bonds 11
Constant maturities
71
??
?3
74
75
76
77
78
29
30
31
32
33
34
35
36
37
38
3-year
5-year
7-year
10-year
20-year
30-year
Composite 13
Over 10 years (long-term)
State and local notes and bonds
Moody's series 14
Aaa
Baa
Bond Buyer series 15
Corporate bonds
Seasoned issues
All industries
Aa
A
Baa
A-rated, recently-offered utility
bonds 17
MEMO: Dividend/price ratio 18
39
Preferred stocks
40
Common stocks
1. Weekly and monthly figures are averages of all calendar days, where the
rate for a weekend or holiday is taken to be the rate prevailing on the preceding
business day. The daily rate is the average of the rates on a given day weighted by
the volume of transactions at these rates.
2. Weekly figures are averages for statement week ending Wednesday.
3. Rate for the Federal Reserve Bank of New York.
4. Unweighted average of offering rates quoted by at least five dealers (in the
case of commercial paper), or finance companies (in the case of finance paper).
Before November 1979, maturities for data shown are 30-59 days, 90-119 days,
and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and
150-179 days for finance paper.
5. Yields are quoted on a bank-discount basis, rather than in an investment
yield basis (which would give a higher figure).
6. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
7. Unweighted average of offered rates quoted by at least five dealers early in
the day.
8. Calendar week average. For indication purposes only.
9. Unweighted average of closing bid rates quoted by at least five dealers.
10. Rates are recorded in the week in which bills are issued. Beginning with the
Treasury bill auction held on Apr. 18, 1983, bidders were required to state the
percentage yield (on a bank discount basis) that they would accept to two decimal
places. Thus, average issuing rates in bill auctions will be reported using two
rather than three decimal places.
11. Yields are based on closing bid prices quoted by at least five dealers.
12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.
13. Averages (to maturity or call) for all outstanding bonds neither due nor
callable in less than 10 years, including one very low yielding "flower" bond.
14. General obligations based on Thursday figures; Moody's Investors Service.
15. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
16. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
17. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations.
18. Standard and Poor's corporate series. Preferred stock ratio based on a
sample o f t e n issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H.15 (519) and G.13 (415) releases.
For address, see inside front cover.
Financial Markets
1.36
STOCK M A R K E T
A25
Selected Statistics
1987
1986
Indicator
1984
1985
1986
Dec.
Jan.
Feb.
Apr.
Mar.
May
June
July
Aug.
Prices and trading (averages of daily figures)
Common slock prices
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
3
Transportation
Utility
4
5
Finance
6 Standard & Poor's Corporation (1941-43 = 10)
7 American Stock Exchange 2
(Aug. 31, 1973 = 50)
92.46
108.01
85.63
46.44
89.28
160.50
108.09
123.79
104.11
56.75
114.21
186.84
136.00
155.85
119.87
71.36
147.19
236.34
142.12
163.85
121.26
76.07
144.29
248.61
151.17
175.60
126.61
78.54
153.32
264.51
160.23
189.17
135.49
78.19
158.41
280.93
166.43
198.95
138.55
77.15
162.41
292.47
163.88
199.03
137.91
72.74
150.52
289.32
163.00
198.78
141.30
71.64
145.97
289.12
169.58
206.61
150.39
74.25
152.73
301.36
174.28
214.12
157.49
74.18
152.27
310.09
184.18
226.49
164.02
78.20
160.94
329.36
207.96
229.10
264.38
264.65
289.02
315.60
332.55
330.65
328.77
334.49
348.68
361.52
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
91,084
6,107
109,191 141,385 148,228 192,419 183,478 180,251 187,135 170,898 163,380 180,356 193,477
8,355 11,846 12,272 14,755 14,962 15,678 14,420 11,655 12,813 12,857 13,604
Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers
22,470
28,390
36,840
36,840
34,960
35,740
38,080
39,820
38,890
38,420
40,250
41,640
Free credit balances at brokers*
11 Margin-account
12 Cash-account
1,755
10,215
2,715
12,840
4,880
19,000
4,880
19,000
5,060
17,395
4,470
17,325
4,730
17,370
4,660
17,285
4,355
16,985
3,680
15,405
4,095
15,930
4,240
16,195
Margin requirements (percent of market value and effective date) 6
13 Margin stocks
14 Convertible bonds
15 Short sales
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Beginning July 5, 1983, the American Stock Exchange rebased its index
effectively cutting previous readings in half.
3. Beginning July 1983, under the revised Regulation T, margin credit at
broker-dealers includes credit extended against stocks, convertible bonds, stocks
acquired through exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds,
and subscription issues was discontinued in April 1984.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
5. New series beginning June 1984.
6. These regulations, adopted by the Board of Governors pursuant to the
Securities Exchange Act of 1934, limit the amount of credit to purchase and carry
"margin securities" (as defined in the regulations) when such credit is
collateralized by securities. Margin requirements on securities other than options
are the difference between the market value (100 percent) and the maximum loan
value of collateral as prescribed by the Board. Regulation T was adopted effective
Oct. 15, 1934; Regulation U, effective May 1, 1936; Regulation G, effective Mar.
11, 1968; and Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977, the Board of Governors for the first time established in
Regulation T the initial margin required for writing options on securities, setting
it at 30 percent of the current market-value of the stock underlying the option. On
Sept. 30,1985, the Board changed the required initial margin, allowing it to be the
same as the option maintenance margin required by the appropriate exchange or
self-regulatory organization; such maintenance margin rules must be approved by
the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC
approved new maintenance margin rules, permitting margins to be the price of the
option plus 15 percent of the market value of the stock underlying the option.
A26
1.37
DomesticNonfinancialStatistics • November 1987
SELECTED FINANCIAL INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1986
Account
1984
1987
1985
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
Savings and loan associations
903,488
948,781
965,032
957,229
961,894
964,096
963,316
935,516
936,918
939,904
944,296
952,674
949,099
2 Mortgage-backed securities . . . .
3 Cash and investment securities 1
4 Other
124,801
223,396
97,303
126,712
238,833
113,621
138,863
259,726
117,617
138,619
261,415
121,606
138,213
250,781
122,682
141,510
250,297
123,257
142,700
251,769
129,340
132,733
261,869
128,857
135,890
263,782
129,283
138,729
266,508
134,750
136,372
274,781
141,047
138,290
283,696
140,454
137,974
285,578
5 Liabilities and net worth
903,488
948,781
965,032
957,229
961,894
964,0%
963,316
935,516
936,918
939,904
944,296
952,674
949,099
740,066
156,920
75,626
81,294
24,078
741,081
159,742
80,194
79,548
20,071
721,759
153,373
75,552
77,821
19,773
722,294
152,161
75,673
76,488
21,814
722,603
158,170
76,469
81,701
18,916
716,828
165,892
77,875
88,017
20,778
718,662
171,276
78,583
92,693
22,546
715,570
175,123
79,184
95,939
19,577
43,034
42,423
40,606
40,661
40,213
40,805
40,180
38,822
1 Assets
6 Savings capital
7 Borrowed money
FHLBB
8
9
Other
10 Other
11 Net worth 2
725,045
125,666
64,207
61,459
17,944
750,071
138,798
73,888
64,910
19,045
749,020
148,541
75,594
72,947
24,706
743,518
155,748
80,364
75,384
15,461
742,747
152,567
75,295
77,272
23,255
34,833
41,064
42,764
42,503
43,326
FSLIC-insured federal savings banks
12 Assets
98,559
131,868
186,810
196,225
202,106
204,918
210,562
235,428
235,762
241,419
246,277
253,006
264,023
13 Mortgages
14 Mortgage-backed securities . . . .
15 Other
57,429
9,949
10,971
72,355
15,676
11,723
103,019
24,097
17,056
108,627
26,431
18,509
110,826
27,516
18,697
112,117
28,324
19,266
113,638
29,766
19,034
136,770
33,570
15,769
136,489
34,634
16,059
138,705
36,104
16,739
140,861
37,511
17,032
144,588
39,382
17,201
150,431
41,191
17,945
16 Liabilities and net worth
98,559
131,868
186,810
196,225
202,106
204,918
210,562
235,428
235,762
241,419
246,277
253,006
264,023
17
18
19
20
21
22
79,572
12,798
7,515
5,283
1,903
4,286
103,462
19,323
10,510
8,813
2,732
6,351
142,858
29,390
16,123
13,267
4,914
9,647
149,074
32,319
16,853
15,466
4,666
10,165
152,834
33,430
17,382
16,048
5,330
10,511
154,447
33,937
17,863
16,074
5,652
10,883
157,872
37,329
19,897
17,432
4,263
11,098
176,741
40,614
20,730
19,884
5,304
12,774
177,359
39,777
20,226
19,551
5,480
13,151
178,691
43,915
21,104
22,811
5,250
13,564
180,642
46,125
21,718
24,407
5,543
13,977
182,805
49,896
22,788
27,108
6,041
14,272
190,018
53,161
24,486
28,675
5,963
14,886
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
Savings banks
23 Assets
203,898
216,776
227,011
228,854
230,919
232,577
236,866
235,603
238,074
240,739
243,454
245,906
243,529
102,895
24,954
110,448
30,876
113,265
37,350
114,188
37,298
116,648
36,130
117,612
36,149
118,323
35,167
119,199
36,122
119,737
37,207
121,178
38,012
122,769
37,136
124,936
37,313
127,041
35,317
14,643
19,215
2,077
23,747
4,954
11,413
13,111
19,481
2,323
21,199
6,225
13,113
12,043
21,161
2,400
20,602
5,018
13,172
12,357
23,216
2,407
20,902
4,811
13,675
12,585
23,437
2,347
21,156
5,195
13,421
13,037
24,051
2,290
20,749
5,052
13,637
14,209
25,836
2,185
20,459
6,894
13,793
13,332
26,220
2,180
19,795
5,239
13,516
13,525
26,893
2,168
19,770
5,143
13,631
13,631
27,463
2,041
19,598
5,703
13,713
13,743
28,700
2,063
19,768
5,308
13,967
13,650
28,739
2,053
19,956
5,176
14,083
13,810
27,643
2,059
18,990
4,917
13,754
32 Liabilities
203,898
216,776
227,011
228,854
230,919
232,577
236,866
235,603
238,074
240,739
243,454
245,906
243,529
33 Deposits
34
Regular 3
35
Ordinary savings
36
Time
37
Other
38 Other liabilities
39 General reserve accounts
180,616
177,418
33,739
104,732
3,198
12,504
10,510
185,972
181,921
33,018
103,311
4,051
17,414
12,823
189,937
184,764
34,530
102,668
5,173
21,360
15,427
190,210
185,002
35,227
102,191
5,208
21,947
16,319
190,334
185,254
36,165
101,125
5,080
23,319
16,896
190,858
185,958
36,739
101,240
4,900
24,254
17,146
192,194
186,345
37,717
100,809
5,849
25,274
18,105
191,441
186,385
38,467
100,604
5,056
24,710
18,236
192,559
187,597
39,370
100,922
4,962
25,663
18,486
193,693
188,432
40,558
100,896
5,261
27,003
18,830
193,347
187,791
41,326
100,308
5,556
29,105
19,423
194,742
189,048
41,967
100,607
5,694
30,436
19,603
192,873
187,261
41,707
100,637
5,612
29,860
19,473
24
25
26
27
28
29
30
31
Loans
Mortgage
Other
Securities
U.S. government
Mortgage-backed securities ..
State and local government ..
Corporate and other
Cash
Other assets
Financial Markets
All
1.37—Continued
1986
Account
1984
1987
1985
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
Credit unions 4
40 Total assets/liabilities and capital.
93,036
118,010
139,233
140,496
143,662
145,653
147,726
149,383
149,751
153,253
154,549
156,086
41
42
63,205
29,831
77,861
40,149
90,367
48,866
91,981
48,515
93,257
50,405
94,638
51,015
95,483
52,243
96,801
52,586
96,753
52,998
98,799
54,454
99,751
54,798
100,153
55,933
62,561
42,337
20,224
84,348
57,539
26,809
73,513
47,933
25,580
105,963
70,926
35,037
80,656
52,007
28,649
126,268
83,132
43,136
81,820
53,042
28,778
128,125
84,607
43,518
83,388
53,434
29,954
130,483
86,158
44,325
84,635
53,877
30,758
131,778
87,009
44,769
86,137
55,304
30,833
134,327
87,954
46,373
85,984
55,313
30,671
135,907
89,717
46,130
85,651
54,912
30,739
136,441
89,485
46,956
86,101
55,118
30,983
138,810
91,042
47,768
87,089
55,740
31,349
140,014
92,012
48,002
87,765
55,952
31,813
146,437
97,189
49,248
n a.
n a.
n. a.
n.a.
Federal
State
43 Loans outstanding
44
Federal
State
45
46 Savings
47
Federal
State
48
Life insurance companies
49 Assets
50
51
52
53
54
55
56
57
58
59
60
Securities
Government
United States 5
State and local
Foreign 6
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
722,979
825,901
887,255
892,304
860,682
910,691
920,771
931,962
943,421
955,269
63,899
42,204
8,713
12,982
359,333
295,998
63,335
156,699
25,767
54,505
63,776
75,230
51,700
9,708
13,822
423,712
346,216
77,496
171,797
28,822
54,369
71,971
79,188
54,487
10,472
14,229
463,135
374,670
88,465
183,943
31,844
54,247
74,898
81,636
56,698
10,606
14,332
462,540
378,267
84,273
185,268
31,725
54,273
76,862
82,047
57,511
10,212
14,324
467,433
381,381
86,052
186,976
31,918
54,199
77,798
84,858
59,802
10,712
14,344
473,860
386,293
87,567
189,460
32,184
54,152
76,177
85,849
61,494
10,267
14,088
474,485
386,994
87,491
192,975
32,079
54,016
81,367
85,000
61,014
10,048
13,938
487,837
395,994
91,843
193,395
32,229
53,692
79,809
87,678
63,580
10,264
13,834
497,143
401,231
95,912
193,957
32,061
53,696
78,886
90,699
66,577
10,423
13,699
501,622
404,112
97,510
194,689
31,875
53,580
82,804
1. Holdings of stock of the Federal Home Loan Banks are in "other assets."
2. Includes net undistributed income accrued by most associations.
3. Excludes checking, club, and school accounts.
4. Data include all federally insured credit unions, both federal and state
chartered, serving natural persons.
5. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
6. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
NOTE: Savings and loan associations: Estimates by the FHLBB for all
associations in the United States based on annual benchmarks for non-FSLICinsured associations and the experience of FSLIC-insured associations.
FSLIC-insured federal savings banks: Estimates by the FHLBB for federal
savings banks insured by the FSLIC and based on monthly reports of federally
insured institutions.
Savings banks: Estimates by the National Council of Savings Institutions for all
savings banks in the United States and for FDIC-insured savings banks that have
converted to federal savings banks.
Credit unions: Estimates by the National Credit Union Administration for
federally chartered and federally insured state-chartered credit unions serving
natural persons.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for
differences between market and book values are not made on each item separately
but are included, in total, in "other assets."
A28
Domestic Financial Statistics • November 1987
1.38 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
U.S. budget1
1 Receipts, total
2
On-budget
3
Off-budget
4 Outlays, total
5
On-budget
6
Off-budget
7 Surplus, or deficit ( - ) , total
8
On-budget
9
Off-budget
Source of financing (total)
Borrowing from the public
Operating cash (decrease, or increase
(-k
12
Other 2
10
11
Fiscal
year
1984
Fiscal
year
1985
Fiscal
year
1986
1987
Mar.
Apr.
May
June
July
Aug.
56,515
38,469
18,046
84,527
67,872
16,655
-28,012
-29,403
1,391
122,897
99,083
23,814
84,240
69,215
15,025
38,657
29,867
8,790
47,691
30,205
17,486
83,435
66,389
17,046
-35,744
-36,184
440
82,945
64,222
18,723
83,366
66,221
17,145
-420
-1,998
1,578
64,223
47,880
16,343
86,491
70,806
15,685
-22,268
-22,926
658
60,213
43,511
16,703
81,940
65,071
16,869
-21,727
-21,561
-166
666,457
500,382
166,075
851,781
685,968
165,813
-185,324
-185,586
262
734,057
547,886
186,171
946,316
769,509
176,807
-212,260
-221,623
9,363
170,817
197,269
236,284
7,884
9,075
13,005
9,655
-3,103
33,060
6,631
7,875
13,367
1,630
-14,324
-1,235
15,846
4,506
-46,775
-543
22,638
-1,478
-6,966
-2,801
20,655
4,716
-3,219
-8,115
30,426
8,514
21,913
17,060
4,174
12,886
31,384
7,514
23,870
8,969
3,576
5,394
55,744
29,688
26,056
33,106
6,383
26,723
40,072
13,774
26,298
19,417
5,365
14,052
22,635
3,764
18,872
769,091
568,862
200,228
989,815
806,318
183,498
-220,725
-237,455
16,371
MEMO
13 Treasury operating balance (level, end of
period)
14
Federal Reserve Banks
15
Tax and loan accounts
1. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. The Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the FFB to finance their programs. The act has also moved two
social security trust funds (Federal old-age survivors insurance and Federal
disability insurance trust funds) off-budget.
2. Includes SDRs; reserve position on the U.S. quota in the IMF; loans to
international monetary fund; other cash and monetary assets; accrued interest
payable to the public; allocations of special drawing rights; deposit funds;
miscellaneous liability (including checks outstanding) and asset accounts;
seigniorage; increment on gold; net gain/loss for U.S. currency valuation adjustment; net gain/loss for IMF valuation adjustment; and profit on the sale of gold.
Reflecting the change in Monthly Treasury Statement classification, Table 2,
monthly data as well as fiscal year data now include monetary assets other than
operating cash with "other", sources of financing, (line 12).
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government" and the Budget of the U.S. Government.
Federal Finance
A29
1.39 U.S. BUDGET RECEIPTS AND OUTLAYS
Millions of dollars
Calendar year
Source or type
Fiscal
year
1985
Fiscal
year
1986
1985
1987
1986
1987
H2
HI
H2
HI
June
July
Aug.
RECEIPTS
1 All sources
734,057
769,091
364,790
394,345
387,524
447,282
82,945
64,223
60,213
334,531
298,941
35
101,328
65,743
348,959
314,838
36
105,994
71,873
169,987
155,725
6
22,295
8,038
169,444
153,919
31
78,981
63,488
183,156
164,071
4
27,733
8,652
205,157
156,760
30
112,421
64,052
40,521
25,525
4
16,574
1,583
31,889
31,596
2
2,452
2,160
26,884
25,008
1
3,108
1,233
77,413
16,082
80,442
17,298
36,528
7,751
41,946
9,557
42,108
8,230
52,396
10,881
13,572
2,599
3,812
1,454
2,549
983
265,163
283,901
128,017
156,714
134,006
163,519
24,712
23,346
25,712
234,646
255,062
116,276
139,706
122,246
146,6%
23,981
20,890
21,447
10,468
25,758
4,759
11,840
24,098
4,742
985
9,281
2,458
10,581
14,674
2,333
1,338
9,328
2,429
12,020
14,514
2,310
1,612
315
416
155
2,038
417
0
3,912
354
35,992
12,079
6,422
18,539
32,919
13,323
6,958
19,887
18,470
6,354
3,323
9,861
15,944
6,369
3,487
10,002
15,947
7,282
3,649
9,605
15,845
7,129
3,818
10,299
3,099
1,415
507
1,719
2,908
1,420
671
1,631
2,698
1,370
587
1,3%
18 All types
946,316
989,815
487,188
486,037
506,739R
503,338
83,366
86,491
81,940
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology . . . .
Energy
Natural resources and environment
Agriculture
252,748
16,176
8,627
5,685
13,357
25,565
273,369
14,471
9,017
4,792
13,508
31,169
134,675
8,367
4,727
3,305
7,553
15,412
135,367
5,384
12,519
2,484
6,245
14,482
138,544
8,876
4,594
2,735
7,141
16,160
142,846
4,420
4,324
2,335
6,179
11,824
24,694
1,068
836
598
1,176
-342
24,126
1,145
836
256
1,392
1,462
24,387
146
823
341
1,075
1,336
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, social
services
4,229
25,838
7,680
4,258
28,058
7,510
644
15,360
3,901
860
12,658
3,169
3,647
14,745
3,494
4,889
12,113
3,108
703
2,539
584
232
2,289
603
355
2,405
464
29,342
29,662
14,481
14,712
15,268
14,182
2,143
1,854
2,757
29 Health
30 Social security and medicare
31 Income security
33,542
254,446
128,200
35,936
268,921'
120,686
17,237
129,037
59,457
17,872
135,214
60,786
19,814
138,296
59,628
20,318
142,864
62,248
3,525
26,339
7,931
3,466
23,991
11,460
3,419
22,929
8,788
32
33
34
35
36
37
26,352
6,277
5,228
6,353
129,436
-32,759
14,527
3,212
3,634
3,391
67,448
-17,953
12,193
3,352
3,566
2,179
68,054
-17,193
14,497
3,360
2,786
2,767
66,77c
-17,426
12,264
3,626
3,238
455
70,110
-18,005
2,440
690
1,448
54
10,010
-3,069
3,368
754
209
167
11,711
-2,831
1,121
634
598
62
13,064
-2,764
2 Individual income taxes, net
3
Withheld
4 Presidential Election Campaign Fund
5
Nonwithheld
6
Refunds
Corporation income taxes
7
Gross receipts
8
Refunds
9 Social insurance taxes and contributions,
net
10 Employment taxes and
contributions
11 Self-employment taxes and
contributions
12 Unemployment insurance
13 Other net receipts
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts
OUTLAYS
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Net interest 5
Undistributed offsetting receipts
26,614
6,555
6,796
6,430
135,284
-33,244
1. Old-age, disability, and hospital insurance, and railroad retirement accounts.
2. Old-age, disability, and hospital insurance.
3. Federal employee retirement contributions and civil service retirement and
disability fund.
4. Deposits of earnings by Federal Reserve Banks and other miscellaneous
receipts.
5. Net interest function includes interest received by trust funds.
6. Consists of rents and royalties on the outer continental shelf and U.S.
government contributions for employee retirement.
SOURCES. U.S. Department of the Treasury, "Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government," and the U.S. Office of Management and Budget. Budget of the U.S. Government, Fiscal Year 1988.
A30
DomesticNonfinancialStatistics • November 1987
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1985
1986
1987
Item
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
1 Federal debt outstanding
1,779.0
1,827.5
1,950.3
1,991.1
2,063.6
2,129.5
2,218.9
2,250.7
2,313.1
2 Public debt securities
3
Held by public
4
Held by agencies
1,774.6
1,460.5
314.2
1,823.1
1,506.6
316.5
1,945.9
1,597.1
348.9
1,986.8
1,634.3
352.6
2,059.3
1,684.9
374.4
2,125.3
1,742.4
382.9
2,214.8
1,811.7
403.1
2,246.7
1,839.3
407.5
2,309.3
1,871.1
438.1
4.4
3.3
1.1
4.4
3.3
1.1
4.4
3.3
1.1
4.3
3.2
1.1
4.3
3.2
1.1
4.2
3.2
1.1
4.0
3.0
1.1
4.0
2.9
1.1
3.8
2.7
1.1
5 Agency securities
6
Held by public
7
Held by agencies
8 Debt subject to statutory limit
1,775.3
1,823.8
1,932.4
1,973.3
2,060.0
2,111.0
2,200.5
2,232.4
2,295.0
9 Public debt securities
10 Other debt 1
1,774.0
1.3
1,822.5
1.3
1,931.1
1.3
1,972.0
1.3
2,058.7
1.3
2,109.7
1.3
2,199.3
1.3
2,231.1
1.3
2,293.7
1.3
11 MEMO: Statutory debt limit
1,823.8
1,823.8
2,078.7
2,078.7
2,078.7
2,111.0
2,300.0
2,300.0
2,320.0
1. Includes guaranteed debt of Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District
of Columbia stadium bonds.
1.41 GROSS PUBLIC DEBT OF U.S. TREASURY
SOURCES. Treasury Bulletin and Monthly
United States.
Statement
of the Public Debt of the
Types and Ownership
Billions of dollars, end of period
Type and holder
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
By type
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable 1
State and local government series
Foreign issues
Government
Public
Savings bonds and notes
Government account series^
14 Non-interest-bearing debt
15
16
17
18
19
20
21
22
23
24
25
26
By holder4
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Money market funds
Insurance companies
Other companies
State and local Treasurys
Individuals
Savings bonds
Other securities
Foreign and international
Other miscellaneous investors 6
1983
1986
Q3
Q4
Q1
Q2
1,410.7
1,663.0
1,945.9
2,214.8
2,125.3
2,214.8
2,246.7
2,309.3
1,400.9
1,050.9
343.8
573.4
133.7
350.0
36.7
10.4
10.4
1,660.6
1,247.4
374.4
705.1
167.9
413.2
44.4
9.1
9.1
.0
73.1
1,943.4
1,437.7
399.9
812.5
2,212.0
2,212.0
249.8
593.1
110.5
2,244.0
1,635.7
406.2
955.3
259.3
608.3
118.5
4.9
4.9
2,306.7
1,659.0
391.0
984.4
211.1
2,122.7
1,564.3
410.7
896.9
241.7
558.4
102.4
4.1
4.1
505.7
87.5
7.5
7.5
1,619.0
426.7
927.5
1,619.0
426.7
927.5
249.8
593.1
110.5
4.7
4.7
268.6
78.1
332.2
.0
90.6
386.9
85.6
365.9
.0
286.2
90.6
386.9
93.0
391.4
647.7
125.4
5.1
5.1
.0
95.2
421.6
9.8
2.3
2.5
2.8
2.6
2.8
2.7
2.6
236.3
151.9
22.8
56.7
39.7
155.1
289.6
160.9
1,212.5
183.4
25.9
76.4
50.1
179.4
348.9
181.3
1,417.2
192.2
25.1
95.8
59.0
n.a.
403.1
211.3
1,602.0
232.l r
28.6
106.9
68.8
n.a.
382.9
190.8
1,553.3
212.5
24.9
100.9
65.7
n.a.
403.1
211.3
1,602.0
232.1'
28.6
106.9
68.8
n.a.
407.5
n.a.
1,641.4
232.0
18.8
n.a.
72.1
n.a.
438.1
212.3
1,657.7
237.1
20.6
n.a.
n.a.
n.a.
71.5
61.9
166.3
259.8
74.5
69.3
192.9
360.6
79.8
75.0
212.5 r
n.a.
92.3
65.6'
251.5'"
n.a.
87.1
68.7'
253.2'
n.a.
92.3
65.6'
251.5'
n.a.
94.7
63.3'
260.4'
96.8
63.4
269.9
n.a.
.0
70.7
231.9
1,022.6
188.8
1. Includes (not shown separately): Securities issued to the Rural Electrification Administration; depository bonds, retirement plan bonds, and individual
retirement bonds.
2. Nonmarketable dollar-denominated and foreign currency-denominated series held by foreigners.
3. Held almost entirely by U.S. Treasury agencies and trust funds.
4. Data for Federal Reserve Banks and U.S. Treasury agencies and trust funds
are actual holdings; data for other groups are Treasury estimates.
1985
.0
4.7
4.7
.0
.0
5. Consists of investments of foreign and international accounts. Excludes
non-interest-bearing notes issued to the International Monetary Fund.
6. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. Treasury deposit accounts, and federally-sponsored agencies.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly
Statement of the Public Debt of the United States; data by holder. Treasury
Bulletin.
Federal Finance
1.42 U.S. GOVERNMENT SECURITIES DEALERS
A31
Transaction1
Par value; averages of daily figures, in millions of dollars
1987
1987
Item
1
?
3
4
5
6
7
8
10
11
1?
13
14
15
16
17
18
Immediate delivery 2
U.S. Treasury securities
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
By type of customer
U.S. government securities
dealers
U.S. government securities
brokers
All others 3
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures contracts
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions
U.S. Treasury securities
Federal agency securities
1984
1985
1986
July'
Aug.
July 22
July 29
Aug. 5
Aug. 12
Aug. 19
Aug. 26
52,778
75,331
95,447
110,375
91,110
105,013
85,256r
81,501'
114,790
94,659
117,201
92,329
26,035
1,305
11,733
7,606
6,099
32,900
1,811
18,361
12,703
9,556
34,249
2,115
24,667
20,455
13,961
35,309
3,446
26,593
27,509
17,518
32,548
3,575
22,149
19,422
13,415
35,784
2,937
28,355
20,419
17,519
26,712'
2,846
21,387
20,421
13,890
26,112
4,050
19,434
18,083
13,823'
51,400
3,568
27,464
18,979
13,378
33,155
2,927
23,668
20,442
14,467
33,040
2,953
32,181
21,237
27,791
31,229
2,552
29,010
15,845
13,693
2,919
3,336
3,646
2,822
2,406
3,082
2,193'
1,554
4,381
2,647
2,927
2,952
25,580
24,278
7,846
4,947
3,243
10,018
36,222
35,773
11,640
4,016
3,242
12,717
49,368
42,218
16,746
4,355
3,272
16,660
58,797
47,962
18,625
3,973
2,740
17,227
48,825
39,070
17,938
3,938
3,143
17,882
57,432
43,823
16,164
3,475
2,765
15,606
46,787'
36,274'
19,083'
3,813
2,897
16,645
45,987
33,960'
13,042
3,523
2,733
15,576
62,542
47,866
13,535
3,652
2,817
17,313
49,934
42,077
12,957
3,495
2,900
14,857
65,312
48,961
21,090
3,219
2,947
15,639
51,097
38,280
16,863
3,357
2,328
14,313
6,947
4,533
264
5,561
6,085
252
3,311
7,175
16
2,810
8,001
13
2,091
6,821
6
2,786
8,967
10
1,777
6,350
0
2,527'
7,198'
21
2,390
8,012
4
2,231
6,651
1
2,702
10,677
0
2,868
8,389
0
1,364
2,843
1,283
3,857
1,876
7,830
1,869
9,875
819
9,854
1,699
8,486
781
11,277
653
7,603
750
5,718
1,561
7,792
1,884
12,119
2,422
8,614
1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers.
Averages for transactions are based on the number of trading days in the period.
The figures exclude allotments of, and exchanges for, new U.S. Treasury
securities, redemptions of called or matured securities, purchases or sales of
securities under repurchase agreement, reverse repurchase (resale), or similar
contracts.
2. Data for immediate transactions do not include forward transactions.
3. Includes, among others, all other dealers and brokers in commodities and
June
securities, nondealer departments of commercial banks, foreign banking agencies,
and the Federal Reserve System.
4. Futures contracts are standardized agreements arranged on an organized
exchange in which parties commit to purchase or sell securities for delivery at a
future date.
5. Forward transactions are agreements arranged in the over-the-counter
market in which securities are purchased (sold) for delivery after 5 business days
from the date of the transaction for Treasury securities (Treasury bills, notes, and
bonds) or after 30 days for mortgage-backed agency issues.
A32
1.43
DomesticNonfinancialStatistics • November 1987
U.S. G O V E R N M E N T SECURITIES DEALERS
Positions and Financing 1
Averages of daily figures, in millions of dollars
1987
Item
1984
1985
1987
1986
June
July"
Aug.
July 29
Aug. 5
Aug. 12
Aug. 19
Aug. 26
Positions
1
Net immediate 2
U.S. Treasury securities
5,429
7,391
13,055
-8,006
-8,871
-10,664
-15,566"
-12,252
-9,209
-5,932
-14,032
2
3
4
5
6
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
5,500
63
2,159
-1,119
-1,174
10,075
1,050
5,154
-6,202
-2,686
12,723
3,699
9,297
-9,504
-3,161
2,240
2,106
371
-7,525
-5,197
5,041
1,259
-2,328
-7,000
-5,843
5,605
461
-6,002
-5,722
-5,006
657
1,228
-4,937
-7,271
-5,243"
3,527
346
-3,304
-7,182
-5,638
8,124
336
-3,022
-7,880
-6,768
7,351
816
-4,851
-4,400
-4,848
4,491
713
-10,622
-4,892
-3,722
7
8
9
10
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures positions
Treasury bills
Treasury coupons
Federal agency securities
Forward positions
U.S. Treasury securities
Federal agency securities
15,294
7,369
3,874
3,788
22,860
9,192
4,586
5,570
33,066
10,533
5,535
8,087
32,014
8,612
3,777
7,202
33,180
7,414
3,151
6,462
33,313
7,862
3,444
5,800
31,817"
7,093
2,689
6,393
32,315
7,994
3,083
6,993
33,540
7,969
3,935
5,958
34,712
7,943
3,823
5,081
33,497
7,606
3,053
5,100
-4,525
1,794
233
-7,322
4,465
-722
-18,062
3,489
-153
-585
3,181
-100
916
6,194
-96
-2,013
6,299
-95
90
7,326
-96
99
7,005
-93
-2,475
6,184
-96
-3,635
5,699
-96
-2,826
5,670
-96
-1,643
-9,205
-911
-9,420
-2,304
-11,909
-921
-19,241
-1,759
-20,187
-1,869
-22,419
-2,419
-18,837"
-1,962
-20,081
-1,881
-22,382
-1,753
-24,657
-1,768
-22,450
11
12
13
14
15
Financing 3
Reverse repurchase agreements 4
Overnight and continuing
Term agreements
Repurchase agreements
18 Overnight and continuing
19 Term agreement
16
17
44,078
68,357
68,035
80,509
98,954
108,693
100,701
149,724
124,938
150,323
n.a.
n.a.
133,211
156,483
130,281
157,532
125,398
164,936
130,403
151,459
n.a.
n.a.
75,717
57,047
101,410
70,076
141,735
102,640
172,523
121,818
168,870
120,198
n.a.
n.a.
166,552
129,083
175,074
126,690
170,987
131,989
177,641
116,343
n.a.
n.a.
1. Data for dealer positions and sources of financing are obtained from reports
submitted to the Federal Reserve Bank of New York by the U.S. Treasury
securities dealers on its published list of primary dealers.
Data for positions are averages of daily figures, in terms of par value, based on
the number of trading days in the period. Positions are net amounts and are shown
on a commitment basis. Data for financing are in terms of actual amounts
borrowed or lent and are based on Wednesday figures.
2. Immediate positions are net amounts (in terms of par values) of securities
owned by nonbank dealer firms and dealer departments of commercial banks on
a commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase (RPs). The maturities of some
repurchase agreements are sufficiently long, however, to suggest that the securities involved are not available for trading purposes. Immediate positions include
reverses to maturity, which are securities that were sold after having been
obtained under reverse repurchase agreements that mature on the same day as the
securities. Data for immediate positions do not include forward positions.
3. Figures cover financing involving U.S. Treasury and federal agency securities, negotiable CDs, bankers acceptances, and commercial paper.
4. Includes all reverse repurchase agreements, including those that have been
arranged to make delivery on short sales and those for which the securities
obtained have been used as collateral on borrowings, that is, matched agreements.
5. Includes both repurchase agreements undertaken to finance positions and
"matched book" repurchase agreements.
NOTE. Data on positions for the period May 1 to Sept. 30, 1986, are partially
estimated.
Federal Finance
1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
A33
Debt Outstanding
Millions of dollars, end of period
1987
1984
Agency
1 Federal and federally sponsored agencies
2 Federal agencies
Defense Department
3
4
Export-Import Bank 2 ' 3
5
Federal Housing Administration
Government National Mortgage Association participation
6
certificates
7
Postal Service 6
Tennessee Valley Authority
8
9
United States Railway Association 6
10 Federally sponsored agencies 7
11
Federal Home Loan Banks
12
Federal Home Loan Mortgage Corporation
13
Federal National Mortgage Association
14
Farm Credit Banks
15
Student Loan Marketing Association
1985
1986
Feb.
Mar.
Apr.
May
June
July
271,220
293,905
307,361
305,603
305,033r
306,909
308,547
323,735
35,145
142
15,882
133
36,390
71
15,678
115
36,958
33
14,211
138
37,073
27
14,211
147
36,660
24
13,813
158
36,531
23
13,813
165
36,587
21
13,813
168
36,968
20
13,416
169
2,165
1,337
15,435
51
2,165
1,940
16,347
74
2,165
3,104
17,222
85
2,165
3,104
17,334
85
2,165
3,104
17,311
85
1,965
3,104
17,376
85
1,965
3,104
17,431
85
1,965
3,718
17,595
85
237,012
65,085
10,270
83,720
72,192
5,745
257,515
74,447
11,926
93,896
68,851
8,395
270,553
88,752
13,589
93,563
62,478
12,171
268,530
91,313
13,847
91,522
59,367
12,481
266,948
92,087
13,074
91,618
57,613
12,556
270,378
94,606
14,850
89,741
57,251
13,930
271,960
95,931
14,637
90,514
56,648
14,230
286,767
99,680
12,309
91,039
56,648
27,091
100,976
n. a.
91,637
55,715
28,583
145,217
153,373
157,510
157,724
157,012
157,177
157,331
157,506
n. a.
15,852
1,087
5,000
13,710
51
15,670
1,690
5,000
14,622
74
14,205
2,854
4,970
15,797
85
14,205
2,854
4,970
15,954
85
13,807
2,854
4,970
15,931
85
13,807
2,854
4,970
15,996
85
13,807
2,854
4,970
16,051
85
13,410
3,468
4,970
16,215
85
58,971
20,693
29,853
64,234
20,654
31,429
65,374
21,680
32,545
65,374
21,749
32,533
65,224
21,473
32,668
65,254
21,487
32,724
65,304
21,525
32,735
65,199
21,539
32,620
n. a.
MEMO
16 Federal Financing Bank debt9
Lending to federal and federally
17
18
19
20
21
sponsored
Export-Import Bank 3
Postal Service 6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association 6
Other Lending10
22 Farmers Home Administration
23 Rural Electrification Administration
24 Other
1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1,1976.
3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing
and Urban Development; Small Business Administration; and the Veterans
Administration.
6. Off-budget.
n. a.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Some data are estimated.
8. Before late 1981, the Association obtained financing through the Federal
Financing Bank (FFB).
9. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB
incurs debt solely for the purpose of lending to other agencies, its debt is not
included in the main portion of the table in order to avoid double counting.
10. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any
particular agency being generally small. The Farmers Home Administration item
consists exclusively of agency assets, while the Rural Electrification Administration entry contains both agency assets and guaranteed loans.
A34
DomesticNonfinancialStatistics • November 1987
1.45 NEW SECURITY ISSUES
Tax-Exempt State and Local Governments
Millions of dollars
1987
Type of issue or issuer,
or use
1984
1
1985
1986
Jan.
Feb.
Mar.
Apr.
May
June
July'
Aug.
106,641
214,189
147,011
7,343
8,969
14,591
6,708
6,037
10,718
6,967
6,002
Type of issue
2 General obligation
3 Revenue
26,485
80,156
52,622
161,567
46,346
100,664
1,100
6,243
3,643
5,325
3,853
10,738
3,363'
3,345'
2,872
3,165
3,329
7,389
2,238
4,729
2,036
3,966
Type of issuer
4 State
5 Special district and statutory authority
6 Municipalities, counties, townships
9,129
63,550
33,962
13,004
134,363
78,754
14,474
89,997
42,541
153
5,275
1,915
1,364
5,825
1,781
1,217
10,004
3,370
419'
4,665'
1,624
1,001
3,019
2,017
1,138'
6,453
3,127
834
3,951
2,182
398
4,117
1,488
7 Issues for new capital, total
94,050
156,050
83,490
1,930
2,774
4,480
3,237
3,848
7,552
4,478
4,899
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
7,553
7,552
17,844
29,928
15,415
15,758
16,658
12,070
26,852
63,181
12,892
24,398
16,948
11,666
35,383
17,332
5,594
47,433
452
92
681
380
38
286
448
145
482
527
89
1,084
659
111
444
991
368
1,907
774
98
571
468
33
1,295
789
194
561
454
161
1,689
1,554
705
1,410
1,082
401
2,399
773
647
835
465
457
1,301
839
158
392
901
181
2,428
1 AU issues, new and refunding
8
9
10
11
12
13
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts beginning April 1986.
SOURCES. Securities Data Company beginning April 1986. Public Securities
Association for earlier data. This new data source began with the November
BULLETIN.
1.46 NEW SECURITY ISSUES
U.S. Corporations
Millions of dollars
1986
1987
Type of issue or issuer,
or use
Dec.
Jan.
Feb.
Apr.
May
June r
July
1 AU issues
132,531
201,269
423,726'
27,206
24,168
27,048
37,953
23,735
19,969
28,445
27,102
2 Bonds2
109,903
165,754
355,293''
20,958
21,253
23,281
28,143
19,518
13,431
22,093
21,859
73,579
36,324
119,559
46,195
231,936'
80,761
42,596
18,920
n.a.
2,038
20,250
n.a.
1,003
20,274
n.a.
3,007
23,388
n.a.
4,755
17,634
n.a.
1,884
11,394
n.a.
2,037
20,564
n.a.
1,530
18,833
n.a.
3,026
24,607
13,726
4,694
10,679
2,997
53,199
52,128
15,140
5,743
12,957
10,456
69,332
91,548'
40,124'
9,971'
31,426'
16,659'
165,564'
4,153
2,432
70
2,498
776
11,029
4,638
1,253
0
1,491
65
13,806
4,253
1,884
176
2,715
410
13,844
7,180
4,261
521
794
710
14,678
2,734
1,683
168
1,370
175
13,389
5,035
754
21
572
138
6,912
4,104
2,061
0
2,091
205
13,632
5,532
1,005
343
1,644
119
13,217
12 Stocks3
22,628
35,515
68,433
6,248
2,915
3,767
9,810
4,217
6,538
6,352
5,243
Type
13 Preferred
14 Common
15 Private placement 3
4,118
18,510
6,505
29,010
11,514
50,316
6,603
1,293
4,955
n.a.
429
2,486
n.a.
905
2,862
n.a.
2,257
7,553
n.a.
526
3,691
n.a.
1,170
5,368
n.a.
1,202
5,150
n.a.
1,154
4,089
n.a.
4,054
6,277
589
1,624
419
9,665
5,700
9,149
1,544
1,966
978
16,178
15,027
10,617
2,427
4,020
1,825
34,517
1,781
709
183
873
101
2,601
365
148
0
237
16
2,149
814
437
191
509
9
1,807
2,016
2,366
299
907
57
4,165
653
2,203
230
297
18
816
1,066
1,516
3
374
200
3,379
1,438
1,353
492
329
199
2,541
1,087
879
366
459
306
2,146
Type of offering
3 Public, domestic
4 Private placement, domestic 3 .
5. Sold abroad
6
7
8
9
10
11
16
17
18
19
20
21
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures, which represent gross proceeds of issues maturing in more than one
year, are principal amount or number of units multiplied by offering price.
Excludes secondary offerings, employee stock plans, investment companies other
than closed-end, intracorporate transactions, equities sold abroad, and Yankee
bonds. Stock data include ownership securities issued by limited partnerships.
2. Monthly data include only public offerings.
3. Data are not available on a monthly basis.
SOURCES. IDD Information Services, Inc., U.S. Securities and Exchange
Commission and the Board of Governors of the Federal Reserve System.
Securities Market and Corporate Finance
1.47 OPEN-END INVESTMENT COMPANIES
A35
Net Sales and Asset Position
Millions of dollars
1987
1986
Item
1985
1986
Dec.
Jan.
Feb.
Mar.
Apr.
May
June'
July
INVESTMENT COMPANIES 1
1 Sales of own shares 2
222,670
411,483
44,796
50,116
36,307
40,378
42,857
28,295
28,637
27,956
2 Redemptions of own shares 3
3 Net sales
132,440
90,230
239,394
172,089
34,835
9,961
26,565
23,551
21,576
14,731
24,730
15,648
37,448
5,409
23,453
4,842
23,693
4,944
22,817
5,139
4 Assets4
251,695
424,156
424,156
464,415
490,643
506,752
502,487
500,634
516,866
530,885
6 Other
20,607
231,088
30,716
393,440
30,716
393,440
34,098
430,317
35,279
455,364
37,090
469,662
43,009
459,478
39,158
461,476
41,467
475,099
42,276
488,609
5. Also includes all U.S. government securities and other short-term debt
securities.
1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment of capital gains distributions and share issue of conversions from one fund
to another in the same group.
3. Excludes share redemption resulting from conversions from one fund to
another in the same group.
4. Market value at end of period, less current liabilities.
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.
1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1985
Account
1984
1985
1987
1986
1986
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2'
2
3
4
5
6
1 Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
266.9
239.9
93.9
146.1
79.0
67.0
277.6
224.8
96.7
128.1
81.3
46.8
284.4
231.9
105.0
126.8
86.8
40.0
292.8
230.2
100.5
129.7
81.2
48.5
277.8
233.5
99.1
134.4
81.7
52.7
288.0
218.9
98.1
120.9
84.3
36.6
282.3
224.4
102.1
122.3
86.6
35.7
286.4
236.3
106.1
130.2
87.7
42.5
281.1
247.9
113.9
134.0
88.6
45.4
294.0
257.0
128.0
129.0
90.3
38.7
296.8
268.7
134.2
134.5
92.4
42.1
7 Inventory valuation
8 Capital consumption adjustment
-5.8
32.8
-.8
53.5
6.5
46.0
6.5
56.0
-9.8
54.2
17.8
51.3
11.3
46.7
6.0
44.0
-8.9
42.1
-11.3
48.2
-20.0
48.0
SOURCE. Survey of Current Business (Department of Commerce).
A36
DomesticNonfinancialStatistics • November 1987
Assets and Liabilities1
1.49 NONFINANCIAL CORPORATIONS
Billions of dollars, except for ratio
1985
Account
1981
1980
1982
1986
1984
1983
Q1
Q2
Q3
Q4
QL
1
Current assets
1,328.3
1,419.6
1,437.1
1,565.9
1,703.0
1,722.7
1,734.6
1,763.0
1,784.6
1,795.7
2
3
4
5
6
Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other
127.0
18.7
507.5
543.0
132.1
135.6
17.7
532.5
584.0
149.7
147.8
23.0
517.4
579.0
169.8
171.8
31.0
583.0
603.4
186.7
173.6
36.2
633.1
656.9
203.2
167.5
35.7
650.3
665.7
203.5
167.1
35.4
654.1
666.7
211.2
176.3
32.6
661.0
675.0
218.0
189.2
33.0
671.5
666.0
224.9
195.3
31.0
663.4
679.6
226.3
7
Current liabilities
890.6
971.3
986.0
1,059.6
1,163.6
1,174.1
1,182.9
1,211.9
1,233.6
1,222.3
8
9
Notes and accounts payable
Other
514.4
376.2
547.1
424.1
550.7
435.3
595.7
463.9
647.8
515.8
636.9
537.1
651.7
531.2
670.4
541.5
682.7
550.9
668.4
553.9
10
Net working capital
437.8
448.3
451.1
516.3
539.5
548.6
551.7
551.1
551.0
573.4
11
MEMO: Current ratio 2
1.492
1.462
1.459
1.487
1.464
1.467
1.466
1.455
1.447
1.469
1. For a description of this series, see "Working Capital of Nonfinancial
Corporations" in the July 1978 BULLETIN, pp. 533-37. Data are not currently
available after 1986:1.
2. Ratio of total current assets to total current liabilities.
SOURCE. Federal Trade Commission and Bureau of the Census,
1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment •
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1986
Industry
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Commercial and other 2
1985
1986 R
Ql
Q2
Q3
Q4
Ql
Q2
Q31
Q41
387.13
379.47
389.07
380.04
376.21
375.50
386.09
374.23
377.65
398.04
406.37
73.27
80.21
69.14
73.56
71.23
75.17
68.71
76.39
68.56
73.62
69.42
70.01
69.87
74.20
70.47
70.18
68.76
72.03
73.24
77.23
72.44
81.22
15.88
11.22
10.75
13.13
11.29
10.14
10.31
10.31
11.02
11.06
10.60
7.08
4.79
6.15
6.66
6.26
5.89
6.29
6.70
6.52
6.50
6.53
5.47
6.70
5.87
5.83
7.02
5.78
6.01
6.41
6.84
6.25
5.55
7.46
5.97
5.77
5.72
6.19
6.79
6.62
7.05
7.05
7.02
6.88
36.11
12.71
150.93
33.91
12.47
160.38
31.96
12.56
167.89
34.25
12.92
156.14
33.77
12.66
157.91
33.81
12.00
161.31
33.78
12.34
166.08
30.85
12.75
160.70
31.13
12.35
164.69
32.93
12.66
170.46
32.95
12.49
175.70
ATrade and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1. Anticipated by business.
1987
1987''1
2. "Other" consists of construction; wholesale and retail trade: finance and
insurance; personal and business services; and communication.
SOURCE. Survey of Current Business (Department of Commerce).
Securities Markets and Corporate Finance
1.51 DOMESTIC FINANCE COMPANIES
A37
Assets and Liabilities
Billions of dollars, end of period
1986
Account
1982
1983
1987
1985
1984
Q1
Q2
Q3
Q4
Qi
Q2
ASSETS
Accounts receivable, gross
Consumer
Business
Real estate
Total
75.3
100.4
18.7
194.3
83.3
113.4
20.5
217.3
89.9
137.8
23.8
251.5
113.4
158.3
28.9
300.6
117.2
165.9
29.9
312.9
125.1
167.7
30.8
323.6
137.1
161.0
32.1
330.2
136.5
174.8
33.7
345.0
133.9
182.8
35.1
351.8
136.9
189.0
36.3
362.1
Less:
5 Reserves for unearned income
6 Reserves for losses
29.9
3.3
30.3
3.7
33.8
4.2
39.2
4.9
40.0
5.0
40.7
5.1
42.4
5.4
41.4
5.8
40.4
5.9
41.2
6.2
7 Accounts receivable, net
8 AH other
161.1
30.4
183.2
34.4
213.5
35.7
256.5
45.3
268.0
48.8
277.8
48.8
282.4
59.9
297.8
57.9
305.5
59.0
314.8
57.0
9 Total assets
191.5
217.6
249.2
301.9
316.8
326.6
342.3
355.6
364.5
371.8
16.5
51.4
18.3
60.5
20.0
73.1
20.6
99.2
19.0
104.3
19.2
108.4
20.2
112.8
22.2
117.8
17.3
119.1
17.2
118.7
11.9
63.7
21.6
26.4
11.1
67.7
31.2
28.9
12.9
77.2
34.5
31.5
12.5
93.1
40.9
35.7
13.4
101.0
42.3
36.7
15.4
105.2
40.1
38.4
16.0
109.8
44.1
39.4
17.2
115.6
43.4
39.4
21.6
118.4
46.3
41.8
24.2
120.4
48.1
43.1
191.5
217.6
249.2
301.9
316.8
326.6
342.3
355.6
364.5
371.8
1
2
3
4
LIABILITIES
10 Bank loans
11 Commercial paper
Debt
Other short-term
12
Long-term
13
14
All other liabilities
15 Capital, surplus, and undivided profits
16 Total liabilities and capital
NOTE. Components may not add to totals because of rounding.
1.52 DOMESTIC FINANCE COMPANIES
Business Credit
Millions of dollars, seasonally adjusted except as noted
Type
1 Total
2
3
4
5
6
7
8
9
10
Retail financing of installment sales
Automotive (commercial vehicles)
Business, industrial, and farm equipment
Wholesale financing
Automotive
Equipment
All other
Leasing
Automotive
Equipment
Loans on commercial accounts receivable and factored commercial accounts receivable
All other business credit
Accounts
receivable
outstanding
July 31,
19871
Extensions
Repayments
1987
1987
1987
May
June
July
May
June
July
May
June
July
189,356
2,904
1,714
3,403
28,101
30,390
29,883
25,197
28,677
26,480
30,359
23,891
739
310
691
623
879
502
1,507
1,460
1,259
1,699
1,318
1,865
768
1,150
568
1,076
438
1,363
27,817
5,523
8,478
1,133
-16
75
298
115
-256
-173
94
127
10,709
513
2,964
11,701
591
3,246
10,704
624
3,186
9,577
530
2,889
11,404
476
3,502
10,877
530
3,059
20,876
40,041
-78
182
3
-14
410
332
1,455
838
1,171
1,019
1,357
1,128
1,533
655
1,168
1,033
947
796
17,363
15,008
96
464
-117
371
853
379
7,262
1,394
8,150
1,554
8,344
1.358
7,166
929
8,268
1,183
7,490
979
These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.
Changes in accounts receivable
1. Not seasonally adjusted,
A38
1.53
DomesticNonfinancialStatistics • November 1987
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1987
Item
1984
1985
1986
Feb.
Mar.
Apr.
May
June'
July
Aug.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
6
Conventional mortgages on new homes
Terms
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 year)
7 FHLBB series 3
8 HUD series 4
96.8
73.7
78.7
27.8
2.64
11.87
104.1
77.4
77.1
26.9
2.53
11.12
118.1
86.2
75.2
26.6
2.48
9.82
135.6'
99.1'
75.3'
27.6'
2.21'
8.87'
130.2'
95.C
74.3'
27.1'
2.2(y
8.77'
136.9'
100.9'
75.2'
27.1'
2.23'
8.84'
132.9'
99.0'
76.1'
28.0'
2.26'
8.99'
131.8
97.5
75.9
28.0
2.40
9.05
134.6'
99.4'
75.4'
27.9'
2.42'
9.01'
141.2
102.6
75.0
27.8
2.19
9.01
12.37
13.80
11.58
12.28
10.25
10.07
9.23'
9.04'
9.14'
9.19'
9.21'
10.11'
9.37'
10.44'
9.45
10.29
9.41'
10.22'
9.38
n.a.
13.81
13.13
12.24
11.61
9.91
9.30
8.81
8.28
8.94
8.18
10.02
8.85
10.61
9.40
10.33
9.50
10.38
9.59
n.a.
9.77
SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (HUD series)
10 GNMA securities 6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12
FHA/VA-insured
13
Conventional
83,339
35,148
48,191
94,574
34,244
60,331
98,048
29,683
68,365
95,514
22,063
73,451
95,140
21,843
73,297
94,404
21,765
72,639
94,064
21,999
72,065
94,064
21,892
72,173
94,154
21,730
72,424
94,600
21,555
73,045
Mortgage transactions (during period)
14 Purchases
16,721
21,510
30,826
979
1,435
2,118
1,718
1,690
1,569
1,613
Mortgage
commitments1
15 Contracted (during period)
16 Outstanding (end of period)
21,007
6,384
20,155
3,402
32,987
3,386
912
2,175
2,805
3,539
3,208
4,421
1,726
4,410
1,745
4,448
2,373
5,071
2,276
5,690
9,283
910
8,373
12,399
841
11,559
13,517
746
12,771
12,911
722
12,189
12,940
717
12,223
12,492
708
11,784
12,442
688
11,754
12,598
382
11,903
i
T
Mortgage transactions (during period)
20 Purchases
21 Sales
21,886
18,506
44,012
38,905
103,474
100,236
7,961
7,840
9,394
9,143
9,777
9,848'
7,995
7,767
7,864
7,447
n.a.
n.a.
1
Mortgage
commitments9
22 Contracted (during period)
32,603
48,989
110,855
9,197
9,669
8,408
7,182
7,330
1
t
FEDERAL H O M E LOAN MORTGAGE CORPORATION
Mortgage holdings (end of period f
17 Total
18
FHA/VA
19 Conventional
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Home Loan Bank
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages; from Department of Housing and Urban Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal Housing
Administration-insured first mortgages for immediate delivery in the private
secondary market. Based on transactions on first day of subsequent month. Large
monthly movements in average yields may reflect market adjustments to changes
in maximum permissable contract rates.
|
T
1
•
6. Average net yields to investors on Government National Mortgage Association guaranteed, mortgage-backed, fully modified pass-through securities, assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying
the prevailing ceiling rate. Monthly figures are averages of Friday figures from the
Wall Street Journal.
7. Includes some multifamily and nonprofit hospital loan commitments in
addition to 1- to 4-family loan commitments accepted in FNMA's free market
auction system, and through the FNMA-GNMA tandem plans.
8. Includes participation as well as whole loans.
9. Includes conventional and government-underwritten loans. FHLMC's mortgage commitments and mortgage transactions include activity under mortgage/
securities swap programs, while the corresponding data for FNMA exclude swap
activity.
Real Estate
A39
1.54 MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
1986
Type of holder, and type of property
1984
1985
1987
1986
Q2
Q3
Q4
Q1
Q2
1 All holders
2,035,238
2,269,173
2,565,867
2,386,022
2,471,574
2,565,867
2,658,942r
2,744,930'
2 1- to 4-family
3 Multifamily
4 Commercial
5
1,318,545
185,604
419,444
111,645
1,467,409
214,045
482,029
105,690
1,666,357
246,879
555,825
96,806
1,544,392
229,405
511,038
101,187
1,607,799
237,661
526,535
99,579
1,666,357
246,879
555,825
%,806
1,709,863'
259,309'
596,507'
93,263'
1,770,953'
266,913'
615,264'
91,800'
1,269,702
379,498
196,163
20,264
152,894
10,177
1,390,394
429,1%
213,434
23,373
181,032
11,357
1,506,422
502,534
235,814
31,173
222,799
12,748
1,435,437
456,163
221,640
26,799
195,484
12,240
1,464,213
474,658
228,593
28,623
204,9%
12,446
1,506,422
502,534
235,814
31,173
222,799
12,748
1,557,014'
517,271
241,512
31,745
230,771
13,243
1,600,779'
542,575
251,701
33,585
243,399
13,890
709,718
528,791
75,567
104,896
464
156,699
14,120
18,938
111,175
12,466
23,787
760,499
554,301
89,739
115,771
688
171,797
12,381
19,894
127,670
11,852
28,902
777,312
558,412
97,059
121,236
605
192,975
12,763
20,847
148,367
10,998
33,601
768,435
556,039
92,563
119,195
638
180,041
12,608
20,181
135,924
11,328
30,798
772,175
557,938
94,227
119,406
604
185,269
12,927
20,709
140,213
11,420
32,111
777,312
558,412
97,059
121,236
605
192,975
12,763
20,847
148,367
10,998
33,601
809,967
557,065
103,698
148,688
516
194,689'
12,832'
20,82C
150,592'
10,445'
35,087
823,217
567,262
105,649
149,804
502
198,089'
12,832'
20,820'
154,192'
10,245'
36,898
158,993
2,301
585
1,716
1,276
213
119
497
447
166,928
1,473
539
934
733
183
113
159
278
203,800
889
47
842
48,421
21,625
7,608
8,446
10,742
161,398
876
49
827
570
146
66
111
247
159,505
887
48
839
457
132
57
115
153
203,800
889
47
842
48,421
21,625
7,608
8,446
10,742
199,509
687
46
641
48,203
21,390
7,710
8,463
10,640
196,498'
665
45
620
48,085
21,157
7,808
8,553
10,567
4,816
2,048
2,768
87,940
82,175
5,765
52,261
3,074
49,187
10,399
9,654
745
4,920
2,254
2,666
98,282
91,966
6,316
47,498
2,798
44,700
14,022
11,881
2,141
5,047
2,386
2,661
97,895
90,718
7,177
39,984
2,353
37,631
11,564
10,010
1,554
5,094
2,449
2,645
97,295
90,460
6,835
43,369
2,552
40,817
14,194
11,890
2,304
4,966
2,331
2,635
97,717
90,508
7,209
42,119
2,478
39,641
13,359
11,127
2,232
5,047
2,386
2,661
97,895
90,718
7,177
39,984
2,353
37,631
11,564
10,010
1,554
5,177
2,447
2,730
95,140
88,106
7,034
37,362
2,198
35,164
12,940
11,774
1,166
5,254
2,504
2,750
94,064
87,013
7,051
35,833'
2,108'
33,725'
12,597'
11,172'
1,425'
44 Mortgage pools or trusts 6
45
Government National Mortgage Association
46
1- to 4-family
47
Multifamily
48
Federal Home Loan Mortgage Corporation
49
1- to 4-family
50
Multifamily
51
Federal National Mortgage Association
52
1- to 4-family
53
Multifamily
54
Farmers Home Administration
55
1- to 4-family
56
Multifamily
57
Commercial
58
Farm
332,057
179,981
175,589
4,392
70,822
70,253
569
36,215
35,965
250
45,039
21,813
5,841
7,559
9,826
415,042
212,145
207,198
4,947
100,387
99,515
872
54,987
54,036
951
47,523
22,186
6,675
8,190
10,472
529,763
260,869
255,132
5,737
171,372
166,667
4,705
97,174
95,791
1,383
348
142
n.a.
132
74
475,615
229,204
223,838
5,366
125,903
123,676
2,227
72,377
71,153
1,224
48,131
21,987
7,170
8,347
10,627
522,721
241,230
235,664
5,566
146,871
143,734
3,137
86,359
85,171
1,188
48,261
21,782
7,353
8,409
10,717
529,763
260,869
255,132
5,737
171,372
166,667
4,705
97,174
95,791
1,383
348
142
n.a.
132
74
571,705
277,386
271,065
6,321
186,295
180,602
5,693
107,673
106,068
1,605
351
154
n.a.
127
70
612,408'
290,512
283,892
6,620
200,284'
194,238'
6,046'
121,270
119,540
1,730
342
149
n.a.
126
67
59 Individuals and others 7
60
1- to 4-family
61
Multifamily
62
Commercial
63
Farm
274,486
154,315
48,670
42,423
29,078
296,809
165,835
55,424
49,207
26,343
325,882
180,896
66,133
54,845
24,008
313,572
175,107
61,198
51,977
25,290
325,135
183,255
63,886
53,396
24,598
325,882
180,8%
66,133
54,845
24,008
330,714
179,517
70,146
57,866
23,185
335,245
180,442
72,809
59,190
22,804
6 Selected financial institutions
7
Commercial banks 2
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
17
13
14
15
16
17
18
19
20
21
22
Savings institutions 3
1- to 4-family
Multifamily
Commercial
Farm
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
Finance companies
23 Federal and related agencies
24
Government National Mortgage Association
25
1- to 4-family
26
Multifamily
27
Farmers Home Administration78
1- to 4-family
29
Multifamily
30
Commercial
Farm
31
32
33
34
35
36
37
38
39
40
41
42
43
Federal Housing and Veterans Administration
1- to 4-family
Multifamily
Federal National Mortgage Association
1- to 4-family
Multifamily
Federal Land Banks
1- to 4-family
Farm
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
1. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve. Multifamily debt refers
to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not bank trust
departments.
3. Includes savings banks and savings and loan associations. Beginning 1987:1,
data reported by FSLlC-insured institutions include loans in process and other
contra assets.
4. Assumed to be entirely 1- to 4-family loans.
5. FmHA-guaranteed securities sold to the Federal Financing Bank were
reallocated from FmHA mortgage pools to FmHA mortgage holdings in 1986: 4,
because of accounting changes by the Farmers Home Administration.
6. Outstanding principal balances of mortgage pools backing securities insured
or guaranteed by the agency indicated.
7. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and other U.S. agencies.
A40
DomesticNonfinancialStatistics • November 1987
1.55 CONSUMER INSTALLMENT CREDIT1-4 Total Outstanding, and Net Change, seasonally adjusted
Millions of dollars
1986
Nov.
1987
Dec.
Jan.
Feb.
Mar.
Apr.
May
June"
July
Amounts outstanding (end of period)
1 Total
522,805
577,784
577,656
577,784
578,578
579,591
579,913
583,595
583,276
587,821
591,276
By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
242,084
113,070
72,119
38,864
52,433
4,235
261,604
136,494
77,857
40,586
58,037
3,205
262,949
136,314
77,508
40,496
57,168
3,221
261,604
136,494
77,857
40,586
58,037
3,205
261,694
135,802
78,284
40,617
58,906
3,276
262,105
136,009
78,492
40,644
59,031
3,311
261,933
136,050
78,569
40,469
59,488
3,405
263,433
137,091
79,255
40,467
59,826
3,522
263,463
136,398
79,476
40,318
60,045
3,576
264,3%
138,038
80,585
40,287
60,983
3,532
264,9%
138,745
81,682
40,364
61,910
3,580
By major type of credit
8 Automobile
Commercial banks
9
Credit unions
10
Finance companies
11
12
Savings institutions
208,057
93,003
35,635
70,091
9,328
245,055
100,709
39,029
93,274
12,043
243,005
100,221
38,854
92,188
11,742
245,055
100,709
39,029
93,274
12,043
245,472
101,389
39,243
92,617
12,223
246,064
101,688
39,347
92,780
12,249
246,290
101,528
39,386
93,032
12,344
247,663
101,781
39,730
93,738
12,414
247,578
102,189
39,841
93,089
12,459
250,130
102,810
40,396
94,270
12,654
251,081
102,834
40,946
94,455
12,846
13 Revolving
14
Commercial banks
15
Retailers
16
Gasoline companies
17
Savings institutions
18
Credit unions
122,021
75,866
34,695
4,235
5,705
1,520
134,938
85,652
36,240
3,205
7,713
2,128
134,391
85,426
36,137
3,221
7,529
2,078
134,938
85,652
36,240
3,205
7,713
2,128
134,916
85,395
36,277
3,276
7,829
2,139
135,663
86,053
36,308
3,311
7,845
2,145
135,166
85,567
36,141
3,405
7,906
2,147
136,706
86,929
36,139
3,522
7,951
2,166
136,869
87,133
36,009
3,576
7,980
2,172
137,401
87,590
35,971
3,532
8,105
2,202
138,704
88,643
36,021
3,580
8,228
2,232
19 Mobile home
20
Commercial banks
21
Finance companies
22
Savings institutions
25,488
9,538
9,391
6,559
25,710
8,812
9,028
7,870
25,731
8,951
9,091
7,689
25,710
8,812
9,028
7,870
25,852
8,787
9,077
7,988
25,789
8,739
9,045
8,005
25,614
8,725
8,823
8,067
25,626
8,698
8,816
8,112
25,542
8,615
8,785
8,142
25,685
8,609
8,807
8,269
25,858
8,624
8,839
8,395
23 Other
24
Commercial banks
25
Finance companies
26
Credit unions
27
Retailers
28
Savings institutions
167,239
63,677
33,588
34,964
4,169
30,841
172,081
66,431
34,192
36,700
4,346
30,412
174,529
68,351
35,035
36,576
4,359
30,208
172,081
66,431
34,192
36,700
4,346
30,412
172,338
66,122
34,108
36,901
4,340
30,867
172,076
65,625
34,183
36,999
4,336
30,932
172,844
66,113
34,196
37,036
4,327
31,172
173,600
66,026
34,537
37,359
4,328
31,349
173,287
65,527
34,524
37,463
4,310
31,463
174,605
65,387
34,%2
37,986
4,315
31,955
175,633
64,895
35,452
38,503
4,343
32,441
2
3
4
3
6
7
Net change (during period)
29 Total
76,622
54,979
782
128
794
1,013
322
3,682
-319
4,545
3,455
By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
32,926
23,566
6,493
1,660
12,103
-126
19,520
23,424
5,738
1,722
5,604
-1,030
2,009
-1,724
513
-69
122
-68
-1,345
180
349
90
869
-16
90
-692
427
31
869
71
411
207
208
27
125
35
-172
41
77
-175
457
94
1,500
1,041
686
-2
338
117
30
-693
221
-149
219
54
933
1,640
1,109
-31
938
-44
600
707
1,097
77
927
48
By major type of credit
36 Automobile
37
Commercial banks
Credit unions
38
39
Finance companies
40
Savings institutions
35,705
9,103
5,330
17,840
3,432
36,998
7,706
3,394
23,183
2,715
-395
836
257
-1,598
110
2,050
488
175
1,086
301
417
680
214
-657
180
592
299
104
163
26
226
-160
39
252
95
1,373
253
344
706
70
-85
408
111
-649
45
2,552
621
555
1,181
195
951
24
550
185
192
41 Revolving
Commercial banks
42
43
Retailers
44
Gasoline companies
45
Savings institutions
Credit unions
46
22,401
17,721
1,488
-126
2,771
547
12,917
9,786
1,545
-1,030
2,008
608
575
558
-53
-68
84
54
547
226
103
-16
184
50
-22
-257
37
71
116
11
747
658
31
35
16
6
-497
-486
-167
94
61
2
1,540
1,362
-2
117
45
19
163
204
-130
54
29
6
532
457
-38
-44
125
30
1,303
1,053
50
48
123
30
47 Mobile home
48
Commercial banks
49
Finance companies
Savings institutions
50
778
-85
-405
1,268
222
-726
-363
1,311
-53
-74
-58
79
-21
-139
-63
181
142
-25
49
118
-63
-48
-32
17
-175
-14
-222
62
12
-27
-7
45
-84
-83
-31
30
143
-6
22
127
173
15
32
126
51 Other
52
Commercial banks
53
Finance companies
54
Credit unions
55
Retailers
56
Savings institutions
17,738
6,187
6,131
616
172
4,632
4,842
2,754
604
1,736
177
-429
655
689
-69
202
-16
-151
-2,448
-1,920
-843
124
-13
204
257
-309
-84
201
-6
455
-262
-497
75
98
-4
65
768
488
13
37
-9
240
756
-87
341
323
1
177
-313
-499
-13
104
-18
114
1,318
-140
438
523
5
492
1,028
-492
490
517
28
486
30
31
32
33
.34
35
1. The Board's series cover most s h o r t - and intermediate-term credit extended to individuals that is scheduled to be repaid (or has the option of
repayment) in two or more installments.
2. More detail for finance companies is available in the G.20 statistical release,
3. Excludes 3 0 - d a y charge credit held by travel and entertainment companies,
4. All data have been revised.
Consumer Installment Credit
A41
1.56 TERMS OF CONSUMER INSTALLMENT CREDIT
Percent unless noted otherwise
1987
Item
1984
1985
1986
Jan.
Feb.
Mar.
Apr.
May
June
July
INTEREST RATES
1
2
3
4
5
6
Commercial banks 1
48-month new car 2
24-month personal
120-month mobile home 2
Credit card
Auto finance companies
New car
Used car
13.71
16.47
15.58
18.77
12.91
15.94
14.96
18.69
11.33
14.82
13.99
18.26
n.a.
n.a.
n.a.
n.a.
10.35
14.10
13.42
18.10
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
10.23
14.00
13.23
17.92
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
14.62
17.85
11.98
17.59
9.44
15.95
11.65
14.62
10.78
14.56
10.59
14.40
10.81
14.49
10.69
14.45
10.64
14.47
10.52
14.53
48.3
39.7
51.5
41.4
50.0
42.6
53.8
44.8
53.6
44.7
53.7
44.9
54.3
45.0
53.5
45.2
53.6
45.4
53.4
45.5
88
92
91
94
91
97
94
98
94
99
94
99
94
98
93
98
93
98
93
98
9,333
5,691
9,915
6,089
10,665
6,555
10,902
7,067
10,602
7,075
10,641
7,145
10,946
7,234
11,176
7,373
11,214
7,479
11,267
7,527
OTHER TERMS 3
7
8
9
10
11
12
Maturity (months)
New car
Used car
Loan-to-value ratio
New car
Used car
Amount financed (dollars)
New car
Used car
1. Data for midmonth of quarter only.
2. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
3. At auto finance companies.
NOTE. These data also appear in the Board's G.19 (421) release. For address,
see inside front cover.
A42
1.57
DomesticNonfinancialStatistics • November 1987
F U N D S R A I S E D IN U . S . CREDIT M A R K E T S
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1984
Transaction category, sector
1981
1982
1983
1984
1985
1986
1985
1986
HI
H2
HI
H2
HI
H2
Nonfinancial sectors
375.8
387.4
548.8
756.3
869.3
834.0
727.8
784.8
732.6
1,006.1
706.0
962.5
87.4
87.8
-.5
161.3
162.1
-.9
186.6
186.7
-.1
198.8
199.0
-.2
223.6
223.7
-.1
214.3
214.7
-.3
181.3
181.5
-.2
216.3
216.4
-.1
201.8
201.9
-.1
245.5
245.5
-.1
211.3
211.4
-.1
217.5
218.0
-.5
S Private domestic nonfinancial sectors
6
Debt capital instruments
7
Tax-exempt obligations
8
9
10
Home mortgages
11
Multifamily residential
Commercial
1?
13
Farm
288.5
155.5
23.4
22.8
109.3
72.2
4.8
22.2
10.0
226.2
148.3
44.2
18.7
85.4
50.5
5.4
25.2
4.2
362.2
252.8
53.7
16.0
183.0
117.1
14.1
49.0
2.8
557.5
314.0
50.4
46.1
217.5
129.9
25.1
63.3
-.8
645.7
461.7
152.4
73.9
235.4
150.3
29.2
62.4
-6.4
619.6
461.7
49.5
113.7
298.5
199.2
33.0
73.7
-7.4
546.5
298.4
42.8
31.2
224.5
135.2
27.5
62.9
-1.1
568.5
329.6
58.0
61.1
210.5
124.7
22.7
63.7
-.5
530.8
355.4
67.5
72.7
215.2
133.1
24.6
60.3
-2.8
760.6
568.0
237.3
75.1
255.7
167.5
33.7
64.4
-10.0
494.7
392.3
15.9
137.0
239.3
156.1
30.8
59.7
-7.4
745.0
531.2
83.0
90.4
357.7
242.3
35.1
87.7
-7.4
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
133.0
22.6
57.0
14.7
38.7
77.9
17.7
52.9
-6.1
13.4
109.5
56.8
25.8
-.8
27.7
243.5
95.0
80.1
21.7
46.6
184.0
96.6
41.3
14.6
31.4
157.9
65.8
71.0
-9.3
30.3
248.1
98.7
91.9
24.8
32.7
238.9
91.3
68.4
18.7
60.5
175.4
97.3
24.9
12.3
40.9
192.6
95.9
57.7
16.9
22.0
102.4
70.6
17.6
-15.7
29.9
213.9
61.6
124.4
-3.0
30.7
19
70
71
??
?3
24
By borrowing sector
State and local governments
288.5
6.8
121.4
16.6
38.5
105.2
226.2
21.5
88.4
6.8
40.2
69.2
362.2
34.0
188.0
4.3
76.6
59.3
557.5
27.4
239.5
.1
97.1
193.4
645.7
107.8
295.0
-13.6
92.8
163.7
619.6
59.4
282.1
-14.4
114.6
178.0
546.5
25.2
232.8
-.4
101.4
187.4
568.5
29.6
246.2
.5
92.7
199.5
530.8
56.8
253.6
-5.9
85.6
140.7
760.6
158.7
336.4
-21.3
99.9
186.8
494.7
35.7
222.4
-15.1
94.4
157.3
745.0
83.2
342.3
-13.7
134.7
198.6
23.5
5.4
3.0
3.9
11.1
16.0
6.7
-5.5
1.9
13.0
17.4
3.1
3.6
6.5
4.1
6.1
1.3
-6.6
6.2
5.3
1.7
4.0
-2.8
6.2
-5.7
9.7
3.2
-1.0
11.5
-4.0
35.5
1.1
-2.2
18.0
18.7
-23.3
1.5
-11.1
-5.6
-8.1
-4.1
5.5
-6.1
4.2
-7.8
7.5
2.6
.4
8.2
-3.6
24.3
7.1
1.4
20.6
-4.8
-5.0
-.8
-3.5
2.4
-3.1
399.3
403.4
566.2
762.4
871.0
843.6
763.3
761.5
728.4
1,013.5
730.3
957.6
1 Total net borrowing by domestic nonfinancial sectors
By sector and instrument
? U.S. government
Treasury securities
4
Agency issues and mortgages
Nonfarm noncorporate
Corporate
75 Foreign net borrowing in United States
?6
Bonds
77
Bank loans n.e.c
78
Open market paper
U.S. government loans
29
30 Total domestic plus foreign
Financial sectors
31 Total net borrowing by financial sectors
By instrument
V U.S. government related
Sponsored credit agency securities
34
Mortgage pool securities
36 Private financial sectors
Corporate bonds
37
38
Mortgages
39
Bank loans n.e.c
Open market paper
40
Loans from Federal Home Loan Banks
41
By sector
42 Sponsored credit agencies
43
44 Private financial sectors
45
Commercial banks
46
Savings and loan associations
47
48
Finance companies
REITs
49
101.9
90.1
94.0
139.0
186.9
248.4
134.2
143.8
154.8
218.9
185.9
310.9
47.4
30.5
15.0
1.9
54.5
4.4
64.9
14.9
49.5
.4
25.2
12.5
.1
1.9
9.9
.8
67.8
1.4
66.4
74.9
30.4
44.4
80.0
31.8
48.2
92.9
25.3
67.6
64.4
17.3
.4
-.1
31.1
15.7
63.8
29.3
.4
1.4
17.0
15.7
61.9
35.3
-.1
21.3
-7.0
64.i
23.3
.4
.7
24.1
15.7
173.7
12.6
161.4
-.4
74.8
26.6
.1
4.0
24.2
19.8
69.8
29.1
40.7
26.2
12.1
101.5
20.6
79.9
1.1
85.3
36.5
.1
2.6
32.0
14.2
.9
13.9
11.7
110.2
15.9
92.1
2.2
108.8
37.7
.1
4.2
50.1
16.7
129.5
4.4
124.3
.8
56.4
25.5
.6
2.4
14.4
13.5
217.8
20.8
198.6
-1.5
93.1
27.7
-.4
5.6
34.1
26.2
1.4
66.4
26.2
5.0
12.1
-2.1
11.4
-.2
30.4
44.4
64.1
7.3
15.6
22.7
17.8
.8
21.7
79.9
85.3
-4.9
14.5
22.3
52.8
.5
12.2
161.4
74.8
-3.6
4.5
29.2
44.1
.6
29.1
40.7
64.4
15.4
23.7
20.2
4.3
.8
31.8
48.2
63.8
-.9
7.5
25.1
31.3
.8
25.3
67.6
61.9
-9.2
13.7
12.1
44.8
.5
18.1
92.1
108.8
-.6
15.3
32.6
60.9
.5
5.2
124.3
56.4
-6.7
1.7
23.1
37.5
.9
19.3
198.6
93.1
-.5
7.4
35.3
50.6
.3
*
1.2
32.7
16.2
32.4
15.0
54.5
11.6
9.2
15.5
18.5
-.2
15.3
49.5
25.2
11.7
6.8
2.5
4.3
*
AH sectors
50 Total net borrowing
51
5?
53
54
55
56
57
58
U.S. government securities
State and local obligations
Corporate and foreign bonds
Consumer credit
Bank loans n.e.c
Open market paper
501.3
493.5
660.2
901.4
1057.8
1092.1
897.5
905.3
833.3
1,232.4
916.2
1268.5
133.0
23.4
32.6
109.2
22.6
61.2
51.3
68.0
225.9
44.2
37.8
85.4
17.7
49.3
5.7
27.6
254.4
53.7
31.2
183.0
56.8
29.3
26.9
24.8
273.8
50.4
70.7
217.8
95.0
74.2
52.0
67.6
324.2
152.4
114.4
235.4
96.6
41.0
52.8
41.0
388.4
49.5
143.5
298.6
65.8
74.0
26.4
45.8
251.2
42.8
49.6
224.8
98.7
89.6
73.8
67.1
296.4
58.0
91.9
210.8
91.3
58.8
30.1
68.1
294.8
67.5
113.5
215.2
97.3
19.8
30.4
44.8
353.5
237.3
115.3
255.7
95.9
62.3
75.2
37.3
340.0
15.9
169.6
239.9
70.6
21.4
19.3
39.4
436.9
83.0
117.4
357.3
61.6
126.6
33.4
52.3
External corporate equity funds raised in United States
50 Total new share issues
60
61
67,
63
64
Mutual funds
All other
Nonfinancial corporations
Financial corporations
Foreign shares purchased in United States
-3.3
33.6
67.0
-31.1
37.5
119.5
-40.1
-22.2
33.3
41.6
146.8
92.3
6.0
-9.3
-11.5
1.9
.3
16.8
16.8
11.4
4.0
1.5
32.1
34.9
28.3
2.7
3.9
38.0
-69.1
-77.0
6.7
1.2
103.4
-65.9
-81.6
11.7
4.0
191.7
-72.1
-80.8
7.0
1.6
39.3
-79.4
-84.5
5.9
-.7
36.6
-58.8
-69.4
7.6
3.0
93.6
-60.4
-75.7
11.0
4.3
113.1
-71.5
-87.5
12.4
3.6
198.7
-52.0
-68.7
8.3
8.5
184.6
-92.3
-92.7
5.7
-5.3
Flow of Funds
1.58
A43
D I R E C T A N D I N D I R E C T S O U R C E S O F F U N D S T O CREDIT M A R K E T S
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates.
1984
Transaction category, or sector
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
?
3
4
5
6
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to savings and loans
Other loans and securities
1981
1982
1983
1984
1985
1986
1985
1986
HI
H2
HI
H2
HI
H2
375.8
387.4
548.8
756.3
869.3
834.0
727.8
784.8
732.6
1,006.1
706.0
962.5
104.4
17.1
23.5
16.2
47.7
115.4
22.7
61.0
.8
30.8
115.3
27.6
76.1
-7.0
18.6
154.6
36.0
56.5
15.7
46.5
203.3
47.2
94.6
14.2
47.3
311.1
87.8
158.5
19.8
45.0
132.5
26.8
52.7
15.7
37.5
176.6
45.2
60.2
15.7
55.5
201.8
53.1
85.6
11.7
51.4
204.9
41.3
103.7
16.7
43.2
267.6
85.4
121.0
13.5
47.7
354.5
90.1
196.0
26.2
42.3
7
8
9
10
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
24.0
48.2
9.2
23.0
15.9
65.5
9.8
24.1
9.7
69.8
10.9
24.9
17.4
73.3
8.4
55.5
17.8
101.5
21.6
62.4
10.9
176.6
30.2
93.4
9.0
74.0
8.8
40.7
25.7
72.5
8.0
70.4
28.8
98.2
23.7
51.0
6.7
104.9
19.5
73.8
12.9
135.3
9.8
109.7
9.0
217.9
50.6
77.1
11
12
Agency and foreign borrowing not in line 1
Sponsored credit agencies and mortgage pools
Foreign
47.4
23.5
64.9
16.0
67.8
17.4
74.9
6.1
101.5
1.7
173.7
9.7
69.8
35.5
80.0
-23.3
92.9
-4.1
110.2
7.5
129.5
24.3
217.8
-5.0
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
LESS: Federal Home Loan Bank advances
19
342.3
115.9
23.4
19.8
53.5
145.9
16.2
352.9
203.1
44.2
14.8
-5.3
96.9
.8
518.7
226.9
53.7
14.6
55.0
161.5
-7.0
682.7
237.8
50.4
32.6
98.5
279.1
15.7
769.2
277.0
152.4
41.2
84.8
228.1
14.2
706.2
300.6
49.5
79.0
73.7
223.2
19.8
700.5
224.4
42.8
25.6
109.9
313.6
15.7
664.9
251.2
58.0
39.6
87.0
244.7
15.7
619.6
241.7
67.5
49.7
72.0
200.4
11.7
918.8
312.2
237.3
32.7
97.5
255.9
16.7
592.1
254.5
15.9
104.2
65.9
165.0
13.5
820.9
346.8
83.0
53.9
81.4
281.9
26.2
Private financial
intermediation
70 Credit market funds advanced by private financial
institutions
Commercial banking
?1
7?
Savings institutions
73
Insurance and pension funds
24
Other finance
320.2
106.5
26.2
93.5
94.0
261.9
110.2
21.8
86.2
43.7
391.9
144.3
135.6
97.8
14.1
550.5
168.9
149.2
124.0
108.3
554.4
186.3
83.4
141.0
143.6
647.9
194.8
105.3
137.2
210.5
581.8
184.2
173.5
144.5
79.5
519.1
153.5
124.9
103.5
137.2
471.3
133.8
63.0
121.8
152.7
637.4
238.8
103.9
160.1
134.5
572.4
106.9
101.4
128.6
235.6
724.0
283.0
109.3
145.9
185.8
75 Sources of funds
Private domestic deposits and RPs
76
Credit market borrowing
27
320.2
214.5
54.5
261.9
195.2
25.2
391.9
212.2
26.2
550.5
317.6
64.1
554.4
204.8
85.3
647.9
242.3
74.8
581.8
300.2
64.4
519.1
334.9
63.8
471.3
203.0
61.9
637.4
206.6
108.8
572.4
224.5
56.4
724.0
260.3
93.1
78
79
30
31
32
51.2
-23.7
-1.1
89.6
-13.6
41.5
-31.4
6.1
92.5
-25.7
153.4
16.3
-5.3
110.6
31.8
168.8
5.4
4.0
112.5
46.8
264.2
17.7
10.3
107.0
129.2
330.8
12.4
1.7
120.0
196.6
217.2
3.0
-.1
146.5
67.8
120.4
7.8
8.2
78.5
25.9
206.5
11.2
14.4
97.4
83.5
322.0
24.3
6.1
116.6
175.0
291.5
.9
-5.5
104.5
191.5
370.5
24.0
9.0
135.5
202.1
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
Other
38
76.6
37.1
11.1
-4.0
1.4
31.0
116.3
69.9
25.0
2.0
-1.3
20.6
153.0
95.5
39.0
-12.7
15.1
16.2
196.4
132.9
29.6
-3.4
8.9
28.3
300.2
150.9
59.2
13.2
51.8
25.1
133.1
81.0
17.8
12.3
1.4
20.6
183.1
142.2
25.0
-26.8
15.7
26.9
209.6
123.6
34.3
19.9
2.2
29.7
210.2
130.8
20.5
25.4
7.3
26.3
390.2
171.0
98.0
1.0
96.3
24.0
76.1
41.4
-21.8
49.3
-13.8
21.0
190.0
120.9
57.4
-24.7
16.7
19.8
39 Deposits and currency
40
Currency
41
Checkable deposits
47
Samll time and savings accounts
43
Money market fund shares
44
Large time deposits
45
Security RPs
46
Deposits in foreign countries
222.4
9.5
18.5
47.3
107.5
36.0
5.2
-1.7
204.5
9.7
18.6
135.7
24.7
5.2
11.1
-.4
229.7
14.3
28.8
215.3
-44.1
-6.3
18.5
3.1
321.1
8.6
27.8
150.7
47.2
84.9
7.0
-5.1
215.1
12.4
42.0
137.5
-2.2
14.0
13.4
-2.1
262.7
14.4
99.4
123.1
20.8
-8.2
7.2
6.0
311.3
13.1
29.4
136.4
30.2
93.4
10.8
-2.0
330.9
4.1
26.3
164.9
64.2
76.5
3.1
-8.2
215.9
15.8
18.2
167.1
4.2
-.8
14.3
-2.9
214.3
9.0
65.8
108.0
-8.6
28.9
12.5
-1.3
241.6
10.9
83.1
119.5
29.0
.9
-7.9
6.2
284.0
17.9
115.9
126.7
12.7
-17.3
22.3
5.7
47 Total of credit market instruments, deposits and
currency.
299.0
320.7
382.7
517.4
515.3
395.8
494.4
540.5
426.0
604.5
317.8
474.0
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
26.2
93.6
-.7
28.6
74.2
-7.3
20.4
75.5
41.3
20.3
80.6
60.9
23.3
72.1
80.1
36.9
91.7
105.8
17.4
83.1
43.7
23.2
78.1
78.2
27.7
76.1
62.2
20.2
69.4
98.1
36.6
96.7
110.5
37.0
88.2
101.1
MEMO: Corporate equities not included above
51 Total net issues
5?
Mutual fund shares
53
Other equities
54 Acquisitions by financial institutions
55 Other net purchases
-3.3
6.0
-9.3
19.9
-23.2
33.6
16.8
16.8
27.6
6.0
67.0
32.1
34.9
46.8
20.2
-31.1
38.0
-69.1
8.2
-39.4
37.5
103.4
-65.9
33.3
4.1
119.5
191.7
-72.1
25.2
94.3
-40.1
39.3
-79.4
-4.1
-36.0
-22.2
36.6
-58.8
20.6
-42.7
33.3
93.6
-60.4
54.0
-20.7
41.6
113.1
-71.5
12.6
29.0
146.8
198.7
-52.0
35.4
111.4
92.3
184.6
-92.3
15.1
77.2
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
48
49
50
NOTES BY LINE NUMBER.
1.
2.
6.
11.
13.
18.
26.
27.
29.
30.
Line 1 of table 1.57.
Sum of lines 3 - 6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33.
Also sum of lines 28 and 47 less lines 40 and 46.
Includes farm and commercial mortgages.
Line 39 less lines 40 and 46.
Excludes equity issues and investment company shares. Includes line 19.
Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates,
less claims on foreign affiliates and deposits by banking in foreign banks.
Demand deposits and note balances at commercial banks.
31. Excludes net investment of these reserves in corporate equities.
32. Mainly retained earnings and net miscellaneous liabilities.
33. Line 13 less line 20 plus line 27.
34-38. Lines 14-18 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 38 includes mortgages.
40. Mainly an offset to line 9.
47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46.
48. Line 2/line 1.
49. Line 20/line 13.
50. Sum of lines 10 and 29.
51. 53. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
A44
2.10
Domestic Nonfinancial Statistics • November 1987
N O N F I N A N C I A L B U S I N E S S ACTIVITY
Selected Measures 1
1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1986
Measure
1984
1985
1987
1986
Dec.
Jan.
Feb.
Mar.
Apr.
May'
June'
July'
Aug.
1 Industrial production
121.4
123.8
125.1
126.7
126.5
127.2
127.3
127.4
128.4
129.2
130.3
130.7
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
126.7
127.3
118.0
139.6
124.7
114.2
130.8
131.1
120.2
145.4
130.0
114.2
133.2
132.3
124.5
142.7
136.4
113.9
135.0
133.7
127.2
142.2
139.7
115.2
134.9
133.6
126.8
142.8
139.1
115.2
136.1
135.0
127.5
144.9
139.7
115.1
136.2
135.0
127.5
145.0
140.4
115.2
135.7
134.5
126.6
144.9
139.9
116.2
137.2
135.8
128.2
145.8
142.1
116.3
138.0
136.6
128.6
147.1
142.8
117.2
138.9
137.3
129.3
147.9
144.2
118.6
139.4
138.0
129.5
149.3
144.1
118.9
123.4
126.4
129.1
131.1
131.1
132.0
132.3
132.4
133.3
133.8
135.0
135.4
80.5
82.0
80.1
80.2
79.8
78.5
80.0
78.9
79.9
78.8
80.3
78.7
80.3
78.7
80.2
79.2
80.5
79.2
80.7
79.8
81.2
80.6
81.3
80.7
2
3
4
5
6
7
Industry
groupings
8 Manufacturing
Capacity utilization (percent) 2
9
Manufacturing
10
Industrial materials industries
11 Construction contracts (1982 = 100)
3
135.0
148.0
155.0
155.0
155.0
151.0
165.0
162.0
149.0
161.0
163.0
175.0
12
13
14
15
16
17
18
19
20
21
Nonagricultural employment, total
Goods-producing, total
Manufacturing, total
Manufacturing, p r o d u c t i o n - w o r k e r . . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income
Retail sales®
114.6
101.6
98.4
94.1
120.0
193.4
185.0
164.6
193.5
179.0
118.3
102.4
97.8
92.9
125.0
207.0
198.7
172.8
206.0
190.6
120.8
102.4
96.5
91.2
128.9
219.9
210.2
176.4
219.1
199.9
121.9
101.2
96.4
91.3
130.6
224.8
214.8
177.7
222.7
211.8
122.4
101.5
96.3
91.1
131.1
225.9
216.3
178.5
224.3
196.8
122.7
101.6
96.4
91.4
131.5
228.4
218.0
179.1
227.5
206.3
122.9
101.7
96.5
91.4
131.8
229.1
218.6
179.2
228.1
206.8
123.2
101.7
96.6
91.5
132.2
230.3 R
219.5
178.9
222.5 R
207.4
123.3
101.7
96.6
91.6
132.4
230.7
220.7
179.9
229.6
207.3
123.5
101.7
96.6
91.6
132.6
231.1
221.2
180.0
228.9
209.6
123.8
102.1
97.0
92.1
132.9
232.2
222.1
180.1
229.9
210.8
124.0
102.1
97.0
92.1
133.2
233.3
224.1
181.5
230.7
213.5
22
23
Prices 7
Consumer (1967 = 100)
Producer finished goods (1967 = 100) . . .
311.1
291.1
322.2
293.7
328.4
289.6
331.1
290.4
333.1
291.8
334.4
292.3
335.9
292.3
337.7
294.9
338.7
296.3
340.1
296.8
340.8
297.8
342.7
297.2
4
1. A major revision of the industrial production index and the capacity
utilization rates was released in July 1985. See " A Revision of the Index of
Industrial Production" and accompanying tables that contain revised indexes
( 1 9 7 7 = 1 0 0 ) t h r o u g h D e c e m b e r 1984 in t h e FEDERAL RESERVE BULLETIN, v o l . 71
(July 1985), pp. 487-501. The revised indexes for January through June 1985 were
shown in the September BULLETIN.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, Department of Commerce, and other sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
6. Based on Bureau of Census data published in Survey of Current
Business.
7. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5,and 6,
and indexes for series mentioned in notes 3 and 7 may also be found in the Survey
of Current
Business.
Figures for industrial production for the last two months are preliminary and
estimated, respectively.
Selected Measures
2.11
A45
LABOR FORCE, EMPLOYMENT, A N D UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1987
Category
1984
1985
1986
Jan.
Feb.
Mar.
Apr.
May
June r
July r
Aug.
HOUSEHOLD SURVEY DATA
1
Noninstitutional population1
178,602
180,440
182,822
184,092
184,259
184,436
184,597
184,777
184,941
185,127
185,264
2
3
Labor force (including Armed Forces) 1
Civilian labor force
115,763
113,544
117,695
115,461
120,078
117,834
121,299
119,034
121,610
119,349
121,479
119,222
121,588
119,335
122,237
119,993
121,755
119,517
122,194
119,952
122,564
120,302
4
5
101,685
3,321
103,971
3,179
106,434
3,163
107,866
3,145
108,146
3,236
108,084
3,284
108,545
3.290
109,112
3,335
109,079
3,178
109,508
3,219
109,989
3,092
6
7
8
Nonagricultural industries
Agriculture
Unemployment
Number
Rate (percent of civilian labor f o r c e ) . . . .
Not in labor force
8,539
7.5
62,839
8,312
7.2
62,745
8,237
7.0
62,744
8,023
6.7
62,793
7,967
6.7
62,649
7,854
6.6
62,957
7,500
6.3
63,009
7,546
6.3
62,540
7,260
6.1
63,186
7,224
6.0
62,933
7,221
6.0
62,700
9
Nonagricultural payroll employment3
94,496
97,519
99,610
100,919
101,150
101,329
101,598
101,708
101,818
102,114
102,270
19,378
966
4,383
5,159
22,100
5,689
20,797
16,023
19,260
927
4,673
5,238
23,073
5,955
22,000
16,394
18,994
783
4,904
5,244
23,580
6,297
23,099
16,710
18,956
718
5,034
5,304
23,821
6,480
23,670
16,936
18,986
719
5,038
5,315
23,897
6,501
23,759
16,935
18,995
722
5,032
5,333
23,902
6,526
23,842
16,977
19,011
729
5,019
5,348
23,969
6,558
23,926
17,038
19,018
735
4,999
5,344
23,980
6,576
24,025
17,031
19,015
738
5,008
5,350
24,007
6,586
24,083
17,031
19,106
743
5,008
5,360
24,067
6,607
24,198
17,025
19,101
749
5,007
5,376
24,046
6,630
24,287
17,074
ESTABLISHMENT SURVEY DATA
Manufacturing
Mining
Contract construction
13 Transportation and public utilities
14 Trade
IS Finance
16 Service
17 Government
10
11
12
A46
2.12
Domestic Nonfinancial Statistics • November 1987
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION
Seasonally adjusted
1986
1987
1987
1986
1987
1986
Series
Q4
Q3
Ql
Q2
Output (1977 = 100)
Q3
Q4
Ql
Q2
Q3
Capacity (percent of 1977 output)
Q4
Ql
Q2'
Utilization rate (percent)
1 Total industry
125.0
126.0
127.0
127.8
157.9
158.8
159.6
160.5
79.1
79.3
79.6
79.9
2 Mining
3 Utilities
96.6
108.8
96.6
110.4
96.6
109.5
97.1
110.5
131.9
137.5
131.7
138.1
131.3
138.7
130.7
139.3
73.2
79.1
73.3
79.9
73.6
79.0
74.9
79.8
4 Manufacturing
129.4
130.4
131.8
132.6
162.4
163.4
164.4
165.5
79.7
79.8
80.2
80.5
5 Primary processing
6 Advanced processing
112.1
139.7
114.0
140.4
115.1
141.8
116.5
142.4
134.6
179.1
135.1
180.4
135.9
181.7
136.5
183.0
83.3
78.0
84.3
77.8
84.8
78.1
85.4
78.3
7 Materials
8 Durable goods
9
Metal materials
10 Nondurable goods
11
Textile, paper, and chemical ..
1?
13
14 Energy materials
Previous cycle
High
1
Low
113.4
' 114.3
115.1
116.5
145.3
145.8
146.3
146.8
78.1
78.4
78.7
79.4
118.8
73.1
119.7
120.4
135.1
117.7
120.1
75.7
121.1
122.4
136.0
120.1
121.2
75.5
122.8
124.2
136.4
122.5
122.1
77.1
125.7
127.2
161.5
114.0
139.9
139.2
138.9
144.7
162.2
113.4
140.4
139.6
139.7
145.0
163.0
112.7
141.0
140.4
140.8
145.6
163.6
111.7
142.0
141.4
73.6
64.2
85.6
86.5
97.3
81.4
74.0
66.7
86.4
87.6
97.3
82.8
74.4
67.0
87.1
88.5
96.9
84 1
74.7
69.3
88.4
89.6
96.5
85 1
98.6
98.2
97.8
98.7
121.4
121.6
121.6
121.5
81.2
80.7
80.5
81.6
1986
1986
Aug.
Dec.
Apr.
May'
June'
July'
Aug.
Latest cycle
High
2
Low
1987
Jan.
Feb.
Mar.
Capacity utilization rate (percent)
15 Total industry
88.6
72.1
86.9
69.5
79.2
79.6
79.4
79.7
79.6
79.5
80.0
80.3
80.9
81.0
16 Mining
17 Utilities
92.8
95.6
87.8
82.9
95.2
88.5
76.9
78.0
73.1
78.8
73.8
79.5
73.9
79.1
73.3
79.0
73.6
78.9
74.2
78.4
75.0
79.9
75.7
81.2
75.7
81.5
75.8
81.7
18 Manufacturing
87.7
69.9
86.5
68.0
79.7
80.0
79.9
80.3
80.3
80.2
80.5
80.7
81.2
81.3
19 Primary processing....
20 Advanced processing..
91.9
86.0
68.3
71.1
89.1
85.1
65.1
69.5
83.2
78.0
85.0
77.9
84.8
77.8
84.7
78.3
84.8
78.1
85.3
77.9
85.4
78.4
85.6
78.5
87.1
78.6
87.1
78.6
21 Materials
92.0
70.5
89.1
68.4
77.9
78.9
78.8
78.7
78.7
79.2
79.2
79.8
80.6
80.7
22 Durable goods
23
Metal materials
91.8
99.2
64.4
67.1
89.8
93.6
60.9
45.7
73.5
63.8
74.3
66.5
74.0
65.9
74.6
67.3
74.7
68.0
74.8
68.5
74.3
68.9
74.9
70.5
75.7
73.2
75.9
74.6
24 Nondurable goods . . . .
91.1
66.7
88.1
70.6
85.5
87.7
87.5
86.8
86.8
88.5
88.3
88.4
89.6
89.7
92.8
98.4
92.5
64.8
70.6
64.4
89.4
97.3
87.9
68.6
79.9
63.3
86.5
97.9
81.2
89.2
100.2
84.3
89.3
98.3
84.9
88.1
97.1
83.7
88.1
95.4
83.7
89.9
95.8
85.2
89.5
96.6
85.4
89.4
97.1
84.6
91.1
98.9
85.9
91.1
•>6
77
28 Energy materials
94.6
86.9
94.0
82.2
80.6
81.2
81.3
80.3
79.8
80.3
81.7
82.7
83.0
83.0
25
Textile, paper, and
chemical
1. Monthly high 1973; monthly low 1975.
2. Monthly highs 1978 through 1980; monthly lows 1982.
NOTE. These data also appear in the Board's G.3 (402) release. For address, see
inside front cover.
Selected Measures
2.13 INDUSTRIAL PRODUCTION
Indexes and Gross Value
A47
•
Monthly data are seasonally adjusted
portion
1987
1986
1977
Groups
1986
avg.
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May r
June
July"
Aug. e
Index (1977 = 100)
MAJOR MARKET
1 Total index
7
3
4
6
7
Intermediate products
8 Durable consumer goods
9 Automotive products
10
Autos and trucks
11
Autos, consumer
Trucks, consumer
17
13
Auto parts and allied goods
14
15
Appliances, AJC and TV
Appliances and TV
16
Carpeting and furniture
17
Miscellaneous home goods
18
19 Nondurable consumer goods
?N
71
77
73
74
75
76
27
Consumer foods and tobacco
Nonfood staples
Consumer chemical products
Consumer paper products
Consumer energy
Consumer fuel
Residential utilities
Equipment
78 Business and defense equipment
79
Business equipment
Construction, mining, and farm
30
31
Manufacturing
37
33
34
35
Defense and space equipment
Intermediate products
36 Construction supplies
37 Business supplies
38
General business supplies
Commercial energy products
39
Materials
40 Durable goods materials
41
Durable consumer parts
Equipment parts
47
43
Durable materials n.e.c
44
Basic metal materials
45 Nondurable goods materials
46
Textile, paper, and chemical
47
48
49
50
Textile materials
Pulp and paper materials
Chemical materials
Miscellaneous nondurable materials . . .
51 Energy materials
57
Primary energy
Converted fuel materials
53
100.00
125.0
125.1
124.9
125.3
126.0
126.7
126.5
127.2
127.3
127.4
128.4
129.2
130.3
130.7
57.72
44.77
25.52
19.25
12.94
42.28
133.2
132.3
124.5
142.7
136.4
113.9
133.8
132.6
125.1
142.5
137.8
113.2
133.3
132.2
124.2
142.8
137.0
113.5
134.0
132.7
124.7
143.3
138.7
113.3
134.5
133.1
125.6
143.1
139.2
114.3
135.0
133.7
127.2
142.2
139.7
115.2
134.9
133.6
126.8
142.8
139.1
115.2
136.1
135.0
127.5
144.9
139.7
115.1
136.2
135.0
127.5
145.0
140.4
115.2
137.2
134.5
126.6
144.9
139.9
116.2
137.2
135.8
128.2
145.8
142.1
116.3
138.0
136.6
128.6
147.1
142.8
117.2
138.9
137.3
129.3
147.9
144.2
118.6
139.4
138.0
129.5
149.3
144.1
118.9
6.89
2.98
1.79
1.16
.63
1.19
3.91
1.24
1.19
.96
1.71
116.2
115.1
112.9
97.3
141.8
118.4
117.1
139.5
141.6
125.8
96.0
115.7
114.5
110.4
87.8
152.4
120.7
116.7
139.4
142.5
125.8
95.1
117.4
117.0
116.8
96.2
155.1
117.3
117.7
141.2
143.5
126.2
96.0
116.3
112.7
107.7
91.9
137.1
120.1
119.0
142.6
144.3
128.8
96.5
118.4
114.6
107.6
92.3
136.0
125.2
121.2
148.1
150.0
131.1
96.3
121.5
117.7
115.6
99.5
145.6
120.8
124.4
153.2
155.1
132.0
99.4
120.0
117.6
117.9
94.3
161.9
117.1
121.9
146.9
148.9
129.1
99.8
122.4
123.5
125.2
105.3
162.1
121.0
121.6
145.2
146.7
130.8
99.3
121.2
121.2
121.6
100.9
159.9
120.5
121.2
142.9
143.8
131.3
99.8
118.1
115.7
111.5
91.8
148.1
121.9
119.9
137.7
139.2
133.5
99.4
120.2
118.0
113.1
91.0
154.2
125.3
121.8
142.2
142.3
133.3
100.7
119.6
114.9
107.7
87.9
144.4
125.8
123.2
143.8
144.4
135.1
101.7
120.1
117.1
111.5
86.1
120.5
117.6
112.7
76.5
125.5
122.4
139.9
140.8
136.1
102.1
125.0
122.7
140.3
18.63
15.29
7.80
7.49
2.75
1.88
2.86
1.44
1.42
127.5
97.0
134.1
131.9
136.5
161.2
147.4
105.7
92.8
128.6
135.5
133.2
137.9
163.4
147.7
107.1
94.9
119.6
126.7
133.6
131.0
136.3
161.1
145.7
106.3
92.0
120.9
127.8
134.4
131.6
137.2
161.7
150.3
105.2
90.8
119.8
128.3
135.0
132.6
137.4
161.0
151.5
105.5
91.7
119.6
129.4
136.0
133.9
138.2
163.1
150.1
106.4
92.2
120.8
129.2
135.9
132.9
139.0
165.9
149.4
106.3
95.0
117.8
129.4
135.9
134.0
137.9
164.7
147.8
105.7
92.5
119.2
129.8
136.5
134.8
138.2
165.7
147.5
105.8
94.1
117.7
129.8
136.4
134.4
138.5
164.7
148.9
106.5
94.5
118.7
131.1
137.7
135.6
139.9
165.9
152.9
106.4
92.1
121.0
132.0
138.5
136.1
141.0
166.4
154.1
108.0
91.7
124.7
132.8
139.3
137.0
141.7
166.3
155.5
109.0
92.9
132.9
139.5
18.01 147.1
14.34 138.6
2.08 59.8
3.27 112.0
1.27 81.6
5.22 214.6
2.49 109.2
3.67 180.3
147.8
139.3
58.3
113.3
81.7
217.5
106.9
181.0
148.0
139.3
58.1
113.0
80.3
215.1
113.3
182.0
148.4
139.1
58.0
112.7
80.5
215.4
111.8
184.6
148.1
138.6
56.6
109.6
79.5
217.3
110.7
184.9
147.0
137.1
58.2
108.8
80.2
213.7
108.9
185.8
147.7
138.1
57.2
110.1
79.6
215.9
109.5
185.2
150.1
140.8
56.8
111.5
81.2
218.4
117.4
186.5
150.1
140.8
58.1
110.9
81.7
219.7
114.0
186.6
150.0
140.8
58.6
111.1
82.4
220.9
110.4
186.1
150.8
141.7
61.2
111.5
84.0
222.0
110.1
186.5
152.2
143.6
64.0
113.9
83.8
225.8
107.3
185.8
152.4
143.8
65.3
116.4
82.2
224.9
106.8
186.3
124.7
146.4
150.6
128.3
125.4
148.4
152.5
130.6
125.9
146.4
151.2
125.8
126.3
149.3
154.1
128.8
126.8
149.7
153.7
132.4
127.9
149.8
154.3
130.3
128.3
148.3
153.3
126.8
128.4
149.4
154.1
128.8
128.5
150.5
155.2
130.3
127.3
150.5
155.5
129.0
128.3
153.8
158.2
135.0
129.4
154.2
159.0
133.5
130.8
155.6
160.7
133.7
130.9
20.50 119.7
4.92 98.5
5.94 153.9
9.64 109.4
4.64 80.0
118.8
95.2
155.6
108.1
76.9
118.9
95.3
154.8
108.8
78.4
119.2
97.0
153.5
109.4
78.8
120.4
98.0
154.5
110.7
82.1
120.7
98.8
154.2
111.2
80.3
120.5
99.0
154.0
110.8
79.2
121.5
100.0
155.6
111.5
80.3
121.8
98.9
155.8
112.6
80.8
122.2
96.2
157.1
114.1
81.8
121.6
95.2
156.0
113.9
81.9
122.7
95.1
157.0
115.6
84.1
124.2
94.6
159.2
117.7
87.1
124.6
94.8
160.1
118.0
5.95
6.99
5.67
1.31
141.8
153.6
145.2
117.7
82.6
226.6
108.2
186.8
10.09
118.3
119.7
120.6
120.3
120.2
123.2
123.2
122.5
122.8
125.4
125.3
125.8
127.8
128.1
7.53
1.52
1.55
4.46
2.57
118.9
110.6
132.1
117.1
116.5
120.5
113.4
136.0
117.5
117.2
121.8
116.0
133.7
119.7
117.1
121.3
114.3
133.5
119.5
117.5
121.0
115.6
134.2
118.5
117.6
124.7
116.1
140.2
122.3
118.5
125.0
116.5
137.9
123.4
118.0
123.6
115.8
136.7
121.8
119.0
124.0
118.5
134.7
122.1
119.2
126.9
125.0
137.4
125.0
121.1
126.5
126.7
129.4
129.7
137.4
125.0
122.0
138.6
124.0
122.9
141.6
126.1
11.69
7.57
4.12
99.9
105.5
89.6
97.9
103.7
87.3
98.0
103.8
87.4
96.9
102.7
86.2
98.7
104.8
87.6
98.8
105.1
87.3
98.9
104.1
89.4
97.6
102.6
88.5
97.0
101.5
88.9
97.5
102.3
88.7
99.3
103.6
91.4
100.4
104.3
93.3
100.7
103.8
95.1
100.7
A48
2.13
Domestic Nonfinancial Statistics • November 1987
INDUSTRIAL PRODUCTION Indexes and Gross Value—Continued
Groups
SIC
code
1977
proportion
1986
1987
1986
avg.
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May r
June
July p
Aug
Index (1977 = 100)
MAJOR INDUSTRY
15.79
9.83
5.96
84.21
35.11
49.10
103.4
99.6
109.6
129.1
130.9
127.9
100.9
96.4
108.3
129.5
132.2
127.5
.50
1.60
7.07
.66
124.2
94.7
113.9
90.7
114.8
2.29
2.79
3.15
133.6
96.6
113.2
103.6
136.4
4.54
8.05
2.40
2.80
.53
24
25
32
1 Mining and utilities
2
Mining
Utilities
3
4 Manufacturing
5
Nondurable
Durable
6
7
8
9
10
Mining
Metal
Coal
Oil and gas extraction
Stone and earth minerals
11
12
13
14
15
Nondurable
manufactures
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
16
17
18
19
20
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products
Leather and products
Durable manufactures
21 Lumber and products
22 Furniture and fixtures
23 Clay, glass, stone products
24
25
26
27
28
Primary metals
Iron and steel
Fabricated metal products
Nonelectrical machinery
Electrical machinery
29 Transportation equipment
30
Motor vehicles and parts
31
Aerospace and miscellaneous
transportation equipment
32 Instruments
33 Miscellaneous manufactures
Utilities
34 Electric
100.8
96.2
108.3
129.5
131.4
100.7
95.6
109.3
129.9
132.3
128.1
128.1
70.9
70.7
122.2
120.8
91.0
111.7
135.1
97.1
114.7
102.5
138.6
163.4
133.0
92.1
153.3
61.3
2.30
1.27
2.72
33
331.2
34
35
36
130.3
132.7
128.6
101.9
96.7
110.6
131.1
133.7
129.2
101.9
97.2
109.5
131.1
134.1
129.0
101.3
96.2
109.6
132.0
134.3
130.4
68.5
117.6
90.5
116.4
68.3
130.1
90.4
115.2
73.5
124.3
90.9
109.6
72.1
133.5
89.9
107.1
72.0
127.7
89.5
110.0
116.0
102.7
136.9
133.7
100.1
116.1
104.2
137.8
134.4
96.8
117.8
105.1
139.5
135.3
92.9
118.4
141.6
135.3
89.1
118.0
107.2
139.8
164.6
134.4
94.0
155.5
62.0
163.0
133.9
93.3
154.9
59.4
167.8
133.9
91.1
157.6
60.2
168.5
132.3
92.0
159.0
61.3
167.7
134.6
92.5
160.7
59.4
123.4
146.7
120.2
122.5
148.3
119.7
125.0
147.7
121.6
125.9
149.2
129.5
148.6
120.6
5.33
3.49
6.46
9.54
7.15
75.8
63.4
107.4
141.9
166.5
73.4
60.8
105.9
142.6
167.2
74.1
74.2
107.3
140.9
166.9
108.3
142.2
167.7
37
371
9.13
5.25
125.8
110.9
125.1
108.2
127.7
112.2
372-6.9
38
39
3.87
146.1
141.3
99.3
148.0
142.0
98.3
122.2
122.4
10
11.12
13
14
7.96
.62
2.66
1.46
102.6
97.4
101.4
96.5
109.5
132.3
134.8
130.5
101.5
97.0
109.0
132.4
135.8
130.0
103.0
98.0
111.3
133.3
136.8
130.8
104.2
98.7
113.3
133.8
137.7
131.1
104.3
98.6
113.9
135.0
139.0
132.1
71.6
91.0
113.1
66.7
121.6
92.0
114.4
71.7
126.6
91.7
115.5
70.1
130.1
91.9
117.2
126.9
92.0
119.6
135.7
98.7
118.4
107.4
140.5
136.1
100.7
119.3
107.1
139.2
136.1
99.4
122.9
106.6
139.9
137.1
107.8
137.8
107.0
123.6
109.0
141.9
138.8
168.1
137.4
94.7
158.1
58.3
166.7
137.7
91.9
159.2
59.6
168.2
138.3
91.4
161.3
59.1
171.4
138.2
94.0
163.8
59.3
174.4
138.0
92.6
165.4
60.6
175.5
138.9
91.7
60.1
175.7
140.3
92.0
171.8
59.9
133.1
150.5
121.7
130.2
148.7
130.0
151.8
121.5
129.5
153.4
122.7
128.9
155.9
122.9
130.6
156.2
120.9
132.0
161.9
119.4
134.1
162.6
119.5
76.8
64.8
107.1
141.2
168.3
73.5
60.5
108.3
139.9
170.2
73.6
60.2
108.0
140.3
169.2
76.3
63.1
77.5
65.1
108.2
108.8
142.3
169.3
143.7
167.6
76.8
65.0
108.6
145.2
166.5
77.6
65.7
107.9
147.1
168.8
78.1
66.8
108.9
148.8
169.4
109.7
150.0
169.4
125.2
107.1
125.6
107.9
127.0
111.2
128.1
112.2
131.8
117.8
130.6
115.5
127.1
109.3
127.4
110.1
125.1
106.6
125.8
108.0
148.7
141.7
97.7
149.7
140.3
99.0
149.6
141.1
98.9
148.4
142.4
103.1
149.6
142.5
101.8
150.7
143.3
101.1
151.2
142.0
101.4
151.3
144.1
100.0
151.0
143.5
101.5
150.2
145.1
99.9
150.0
146.1
99.9
122.8
123.8
125.1
123.5
121.7
122.3
123.3
123.4
61.1
118.1
62.2
111.2
122.8
121.8
122.1
108.1
141.1
168.2
125.2
145.2
81.7
129.1
Gross value (billions of 1982 dollars, annual rates)
MAJOR MARKET
35 Products, total.
517.5 1,702.2 1,681.3 1,677.8 1,683.9 1,690.8 1,701.9 1,707.1 1,721.4 1,724.3 1,713.3 1,728.0 1,726.8 1,729.9 1,737.7
36 Final
37
Consumer goods.
38
Equipment
39 Intermediate
405.7 1,314.5 1,292.6 1,292.3 1,292.5 1,297.6 1,306.7 1,315.1 1,331.9 1,330.5 1,320.1 1,327.9 1,326.4 1,325.8 1,333.6
272.7
853.8 846.9 839.8 839.3 847.2 860.5 865.5 869.7 870.0 863.0 867.2 863.2 866.6 867.3
133.0
458.2 445.7 452.5 453.2 450.4 446.2 449.6 462.2 460.4 457.1 460.7 463.2 459.3 466.4
111.9
387.6 388.7 385.5 391.4 393.2 395.3 391.9 389.5 393.9 393.3 400.1 400.4 404.0 404.1
• A major revision of the industrial production index and the capacity
utilization rates was released in July 1985. See "A Revision of the Index of
Industrial Production" and accompanying tables that contain revised indexes
( 1 9 7 7 = 1 0 0 ) t h r o u g h D e c e m b e r 1984 in t h e FEDERAL RESERVE BULLETIN, v o l . 7 1
(July 1985), pp. 487-501. The revised indexes for January through June 1985 were
shown in the September BULLETIN.
NOTE. These data also appear in the Board's G.12.3 (414) release. For address,
see inside front cover.
Selected Measures
2.14
A49
HOUSING A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1987
1986
Item
1984
1985
1986
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May r
June r
July
Private residential real estate activity (thousands of units)
N E W UNITS
1
Permits authorized
7
3
2-or-more-family
4 Started
5
6
2-or-more-family
7 Under construction, end of period 1
8
2-or-more-family
9
10
11
12
2-or-more-family
13 Mobile homes shipped
Merchant builder activity in 1-family units
14
15 Number for sale, end of period
1,682
922
759
1,733
957
111
1,750
1,071
679
1,664
1,036
628
1,667
1,028
639
1,862
1,184
678
1,652
1,085
567
1,676
1,204
472
1,719
1,150
569
1,598
1,058
540
1,493
1,009
484
1,517
1,039
478
1,487
993
494
1,749
1,084
665
1,742
1,072
669
1,805
1,179
626
1,657
1,114
543
1,637
1,129
508
1,813
1,233
580
1,816
1,253
563
1,838
1,303
535
1,730
1,211
519
1,643
1,208
435
1,606
1,130
476
1,586
1,088
498
1,606
1,150
456
1,051
556
494
1,063
539
524
1,074
583
490
1,142
625
518
1,125
619
506
1,104
610
494
1,089
609
480
1,096
621
476
1,085
618
467
1,070
623
446
1,061
621
441
1,062
623
439
1,063
632
430
1,652
1,025
627
1,703
1,072
631
1,756
1,120
637
1,745
1,165
580
1,774
1,158
616
1,894
1,184
710
1,956
1,217
739
1,726
1,107
619
1,689
1,141
548
1,830
1,148
682
1,621
1,158
463
1,591
1,091
500
1,652
1,081
571
296
284
244
241
237
251
242
231
228
227
222
231
245
639
358
688
350
748
361
675
357
691
353
768
357
712
358
740
358
720
358
733
359
643
356
650
359
653
359
80.0
84.3
92.2
96.4
94.0
95.0
98.5
95.2
98.4
96.5 r
105.0
108.0
107.0
97.5
101.0
112.2
114.9
113.6
118.9
122.1
121.3
119.5
118. V
126.9
135.9
129.2
2,868
3,217
3,566
3,760
3,850
4,060
3,480
3,690
3,680
3,560
3,770
3,500
3,430
72.3
85.9
75.4
90.6
80.3
98.3
79.4
97.3
80.4
99.1
80.8
100.6
82.1
100.1
85.0
104.3
85.6
104.9
85.0
105.0
85.2
106.3
85.2
106.0
86.2
107.6
Price (thousands of dollars)2
16
Units sold
Average
17
Units sold
EXISTING UNITS ( 1 - f a m i l y )
18 Number sold
Price of units sold (thousands of dollars)2
19
20 Average
Value of new construction 3 (millions of dollars)
CONSTRUCTION
21 Total put in place
328,643 355,995 388,815 394,871 390,646 380,175 384,716 401,644 388,303 397,136 397,652 392,391 391,809
??
270,978 291,665 316,589 322,929 320,417 306,826 310,170 326,453 312,203 320,841 322,701 320,048 318,605
153,849 158,475 187,147 192,592 194,463 181,682 187,813 203,115 190,812 199,523 195,871 198,311 198,195
117,129 133,190 129,442 130,337 125,954 125,144 122,357 123,338 121,391 121,318 126,830 121,737 120,410
73
74
75
76
T7
28
Nonresidential, total
Buildings
Commercial
Other
Public utilities and other
79 Public
30
31
Highway
37
Conservation and development
33
Other
13,746
39,357
12,547
51,479
15,769
51,315
12,619
53,487
13,747
48,592
13,216
53,887
14,634
56,121
13,820
45,762
13,404
54,193
13,787
44,570
13,207
54,809
14,231
42,897
12,094
50,881
14,755
44,627
12,112
53,071
14.776
43,379
11,354
52,285
15,143
42,609
11,504
50,920
14,989
43,905
13,349
53,359
14,857
45,265
12,086
49,602
14,749
45,300
11,282
48,007
15,207
45,914
57,662
2,839
18,772
4,654
31,397
64,326
3,283
21,756
4,746
34,541
72,225
3,919
23,360
4,668
40,278
71,942
3,566
22,643
4,726
41,007
70,229
4,007
19,958
4,647
41,617
73,348
4,313
21,935
4,954
42,146
74,546
4,100
23,508
5,155
41,783
75,191
2,806
23,260
4,883
44,242
76,100
3,893
23,575
4,792
43,840
76,295
3,749
22,703
5,649
44,194
74,951
4,129
22,629
4,819
43,374
72,343
4,116
21,688
5,425
41,114
73,204
4,316
21,847
5,412
41,629
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly
comparable with data in prior periods because of changes by the BureaU of the
Census in its estimating techniques. For a description of these changes see
Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
NOTE. Census Bureau estimates for all series except (1) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices
of existing units, which are published by the National Association of Realtors. All
back and current figures are available from the originating agency. Permit
authorizations are those reported to the Census Bureau from 16,000 jurisdictions
beginning with 1978.
A50
2.15
Domestic Nonfinancial Statistics • November 1987
C O N S U M E R A N D P R O D U C E R PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Change from 3 months earlier
(at annual rate)
Item
1986
1986
1987
Aug.
Aug.
Sept.
Change from 1 month earlier
1987
Dec.
Mar.
Index
level
Aug.
1987
(1967
= 100) 1
1987
June
Apr/
May
June
July
Aug.
CONSUMER PRICES 2
1
All items
2
3
4
5
6
Food
Energy items
All items less food and energy
Commodities
Services
1.6
4.3
2.0
2.5
6.2
4.6
.4
.3
.4
.2
.5
342.7
4.2
-17.3
4.0
1.6
5.4
3.4
8.4
4.2
3.0
4.8
8.4
-21.0
3.7
2.6
4.3
4.1
-9.9
3.7
1.4
5.1
2.5
26.1
5.2
5.1
5.3
6.5
7.9
4.0
3.8
3.8
.3
.3
.5
.6
.4
.5
.2
.3
.3
.3
.7
1.5
.2
.0
.2
-.2
.1
.3
.3
.4
.0
1.7
.4
.1
.5
333.8
388.9
341.7
270.9
418.3
-1.8
5.7
-36.6
2.2
1.7
3.2
-.1
17.1
2.9
1.9
-.4
11.2
-42.7
2.3
2.0
1.8
1.0
-12.5
4.4
3.4
4.3
-6.7
59.8
4.2
.4
4.7
14.3
10.9
-.3
1.4
.5
1.4
.9
.1
.3
.2
.5
.9
.1
.0
.2
-.6
1.5
.3
.1
.0
-1.3
1.5
.3
.2
297.2
283.6
534.0
265.9
312.1
-4.5
-.4
4.6
3.2
-1.5
1.5
-1.2
1.2
7.8
3.3
5.2
4.5
.3
.3
.y
.4
.6
.5
.8
.5
.5
.3
324.2
314.0
7.7
-30.0
-4.0
.8
21.6
18.7
18.1
-19.6
-24.1
-2.7
-.5
8.5
-10.3
50.0
15.9
34.0
15.8
33.7
4.4
.7
.7
4.4r
2.2'
2.5r
-1.4
.9
4.2
-2.0
2.8
2.9
.1
.5
1.0
240.1
632.6
280.0
PRODUCER PRICES
7
8
9
10
11
Finished goods
Consumer foods
Consumer energy
Other consumer goods
Capital equipment
12
13
Intermediate materials 3
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.
,4R
1.4
.8'
-
.y
,i
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
Selected Measures
2.16
A51
GROSS NATIONAL PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1987
1986
Account
1984
1985
1986
Q2
Q3
Q4
Ql
Q2
GROSS NATIONAL PRODUCT
1
3,772.2
4,010.3
4,235.0
4,211.6
4,265.9
4,288.1
4,377.7
4,445.1
By source
Personal consumption expenditures
Durable goods
Nondurable goods
4
5
2,430.5
335.5
867.3
1,227.6
2,629.4
368.7
913.1
1,347.5
2,799.8
402.4
939.4
1,458.0
2,765.8
386.4
934.3
1,445.1
2,837.1
427.6
940.0
1,469.5
2,858.6
419.8
946.3
1,492.4
2,893.8
396.1
969.9
1,527.7
2,943.7
409.0
982.1
1,552.6
664.8
597.1
416.0
141.1
274.9
181.1
641.6
631.6
442.6
152.5
290.1
189.0
671.0
655.2
436.9
137.4
299.5
218.3
679.4
651.9
433.8
135.9
297.9
218.1
660.8
657.3
433.5
131.1
302.4
223.8
660.2
666.6
439.7
132.9
306.7
226.9
699.9
648.2
422.8
128.7
294.1
225.4
702.6
662.3
434.6
129.7
304.9
227.7
67.7
60.5
10.0
13.6
15.7
16.8
27.5
24.5
3.5
-.9
-6.4
5.1
51.6
48.7
40.3
27.3
-58.9
383.5
442.4
-79.2
369.9
449.2
-105.5
376.2
481.7
-100.8
371.3
472.1
-110.5
376.6
487.1
-116.9
383.3
500.2
-112.2
397.3
509.5
-118.4
416.5
534.8
735.9
310.5
425.3
818.6
353.9
464.7
869.7
366.2
503.5
867.2
368.4
498.8
878.5
371.2
507.3
886.3
368.6
517.7
896.2
366.9
529.3
917.1
379.6
537.6
3,704.5
1,581.3
681.5
899.9
1,813.9
376.9
4,000.3
1,637.9
704.3
933.6
1,969.2
403.1
4,219.3
1,693.8
726.8
967.0
2,116.2
425.0
4,184.0
1,689.9
717.0
972.9
2,097.9
423.8
4,262.4
1,703.6
735.8
967.8
2,136.6
425.7
4,294.6
1,698.9
737.3
961.6
2,160.0
429.3
4,326.0
1,738.7
747.0
991.7
2,212.0
426.9
4,404.8
1,763.5
756.7
1,006.8
2,252.2
429.4
67.7
40.2
27.5
10.0
7.3
2.7
15.7
4.8
10.9
27.5
10.1
17.5
3.5
-12.1
15.6
-6.4
-4.5
-1.9
51.6
35.2
16.5
40.3
22.1
18.2
3,501.4
3,607.5
3,713.3
3,704.7
3,718.0
3,731.5
3,772.2
3,795.3
7
6 Gross private domestic investment
7
Fixed investment
Nonresidential
8
9
Structures
Producers' durable equipment
10
Residential structures
11
1?
13
Change in business inventories
Nonfarm
14 Net exports of goods and services
15
Imports
16
17 Government purchases of goods and services
18
19
State and local
By major type of product
70
71
??
73
74
25
Durable
Structures
76 Change in business inventories
Durable goods
77
Nondurable goods
28
79
MEMO
Total GNP in 1982 dollars
NATIONAL INCOME
30
3,028.6
3,229.9
3,422.0
3,414.1
3,438.7
3,471.0
3,548.3
3,593.3
31 Compensation of employees
37
Wages and salaries
33
Government and government enterprises
34
Other
35
Supplement to wages and salaries
Employer contributions for social insurance
36
Other labor income
37
2,213.9
1,838.8
346.1
1,492.5
375.1
192.2
182.9
2,370.8
1,974.7
372.3
1,602.6
396.1
203.8
192.3
2,504.9
2,089.1
394.8
1,694.3
415.8
214.7
201.1
2,487.6
2,074.6
391.6
1,683.0
413.0
213.1
199.8
2,515.1
2,097.9
397.7
1,700.2
417.2
214.9
202.3
2,552.0
2,128.5
403.8
1,724.7
423.5
219.1
204.4
2,589.9
2,163.3
412.2
1,751.1
426.6
220.0
206.7
2,623.4
2,191.4
418.1
1,773.3
432.0
222.5
209.5
234.5
204.0
30.5
257.3
227.6
29.7
289.8
252.6
37.2
298.1
250.1
48.1
292.5
256.2
36.3
297.8
261.2
36.6
320.9
269.7
51.3
323.1
275.8
47.3
38 Proprietors'income 1
39
Business and professional
40
Farm 1
8.5
9.0
16.7
17.4
17.2
18.4
20.0
18.9
47 Corporate profits 1
43
Profits before tax 3
Inventory valuation adjustment
44
45
Capital consumption adjustment
266.9
240.0
-5.8
32.7
277.6
224.8
-.7
53.5
284.4
231.9
6.5
46.0
282.3
224.4
11.3
46.7
286.4
236.3
6.0
44.0
281.1
247.9
-8.9
42.1
294.0
257.0
-11.3
48.2
296.8
268.7
-20.0
48.0
46 Net interest
304.8
315.3
326.1
328.7
327.5
321.7
323.6
331.1
41 Rental income of persons 2
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
A52
2.17
Domestic Nonfinancial Statistics • November 1987
PERSONAL INCOME A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1987
1986
Account
1984
1985
1986
Q2
Q3
Q4
Q1
Q2'
PERSONAL INCOME AND SAVING
1 Total personal income
3,108.7
3,327.0
3,534.3
3,526.6
3,553.6
3,593.6
3,662.0
3,708.6
2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufacturing
Distributive industries
5
6
Service industries
7
Government and government enterprises
1,838.6
577.6
439.1
442.8
472.1
346.1
1,974.9
609.2
460.9
473.0
520.4
372.3
2,089.1
623.3
470.5
497.1
573.9
394.8
2,074.6
621.2
468.7
493.7
568.1
391.6
2,097.9
622.8
470.0
498.6
578.8
397.7
2,128.5
628.4
474.5
504.7
591.6
403.8
2,163.3
632.9
477.2
511.5
606.7
412.2
2,191.4
635.0
479.0
518.9
619.3
418.1
182.9
234.5
204.0
30.5
8.5
75.5
444.7
456.6
235.7
192.3
257.3
227.6
29.7
9.0
76.3
476.5
489.7
253.4
201.1
289.8
252.6
37.2
16.7
81.2
497.6
518.3
269.2
199.8
298.1
250.1
48.1
17.4
81.0
500.0
514.5
266.4
202.3
292.5
256.2
36.3
17.2
82.1
498.1
523.6
272.4
204.4
297.8
261.2
36.6
18.4
82.9
496.8
526.6
273.5
206.7
320.9
269.7
51.3
20.0
84.5
499.8
533.7
278.0
209.5
323.1
275.8
47.3
18.9
86.3
506.3
541.5
282.3
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income 1
Business and professional 1
Farm 1
Rental income of persons 2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
132.7
148.9
159.6
158.8
160.1
161.8
166.7
168.4
3,108.7
3,327.0
3,534.3
3,526.6
3,553.6
3,593.6
3,662.0
3,708.6
440.2
485.9
512.2
504.2
515.3
532.0
536.1
578.0
20 EQUALS: Disposable personal income
2,668.6
2,841.1
3,022.1
3,022.4
3,038.2
3,061.6
3,125.9
3,130.6
21
LESS: Personal outlays
2,504.5
2,714.1
2,891.5
2,856.4
2,929.4
2,952.6
2,987.5
3,037.4
22 EQUALS: Personal saving
164.1
127.1
130.6
166.0
108.9
109.0
138.4
93.2
14,770.6
9,488.6
10,419.0
6.1
15,073.7
9,830.2
10,622.0
4.5
15,368.3
10,141.9
10,947.0
4.3
15,353.0
10,088.2
11,024.0
5.5
15,369.9
10,241.8
10,968.0
3.6
15,387.6
10,228.8
10,956.0
3.6
15,523.4
10,188.9
11,008.0
4.4
15,586.4
10,215.6
10,865.0
3.0
19
LESS: Personal tax and nontax payments
MEMO
Per capita (1982 dollars)
23
Gross national product
24
Personal consumption expenditures
25
Disposable personal income
26 Saving rate (percent)
GROSS SAVING
27 Gross saving
568.5
531.3
532.0
538.7
516.2
515.3
554.3
551.3
28
29
30
31
673.5
164.1
94.0
-5.8
664.2
127.1
99.6
-.7
679.8
130.6
92.6
6.5
713.7
166.0
93.6
11.3
660.4
108.9
92.6
6.0
653.4
109.0
78.5
-8.9
683.8
138.4
75.6
-11.3
639.9
93.2
70.1
-20.0
254.5
160.9
269.1
168.5
282.8
173.8
280.9
173.2
284.3
174.6
289.3
176.6
291.8
178.0
294.5
182.1
-105.0
-169.6
64.6
-132.9
-196.0
63.1
-147.8
-204.7
56.8
-175.0
-230.2
55.1
-144.1
-203.7
59.6
-138.1
-188.7
50.6
-129.5
-170.5
41.0
-88.6
-139.2
50.6
573.9
525.7
527.1
539.6
510.1
503.7
552.1
548.1
664.8
-90.9
641.6
-115.9
671.0
-143.9
679.4
-139.8
660.8
-150.7
660.2
-156.5
699.9
-147.7
702.6
-154.5
5.4
-5.6
-4.9
.9
-6.1
-11.6
-2.2
-3.1
Gross private saving
Personal saving
Undistributed corporate profits 1
Corporate inventory valuation adjustment
Capital consumption
32 Corporate
33 Noncorporate
34
35
36
allowances
Government surplus, or deficit ( - ) , national income and
product accounts
Federal
State and local
37 Gross investment
38 Gross private domestic
39 Net foreign
40 Statistical discripancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE. Survey of Current Business (Department of Commerce).
Summary Statistics
3.10
U.S. INTERNATIONAL TRANSACTIONS
A53
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted.1
1987
1986
1984
Item credits or debits
1986
1985
Q2
Q3
Q4
Q1
Q2"
-107,013
-116,394
-141,352
-33,755
-34,634
-36,583
-40,230
-37,977
-36,398
-36,784
-33,435
-41,097
-41,956
-112,522
219,900
-332,422
-1,942
18,490
1,138
-122,148
215,935
-338,083
-3,338
25,398
-1,005
-144,339
224,361
-368,700
-3,662
20,844
1,463
-33,651
56,928
-90,579
-1,054
4,587
530
-37,115
56,534
-93,649
-815
5,339
342
-38,595
57,021
-95.616
-495
4,492
759
-38,757
56,992
-95,749
-37
5,500
-387
-39,525
59,975
-99,500
111
1,608
-387
-3,637
-8,541
-4,079
-11,222
-3,885
-11,772
-918
-3,249
-875
-3,459
-1,151
-2,987
-1,017
-2,086
-913
-1,991
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
-5,476
-2,831
-1,920
-242
-1,454
15
225
-182
12 Change in U.S. official reserve assets (increase, - )
13
Gold
14
Special drawing rights (SDRs)
15
Reserve position in International Monetary Fund
16
Foreign currencies
-3,130
0
-979
-995
-1,156
-3,858
0
-897
908
-3,869
312
0
-246
1,500
-942
16
0
-104
366
-246
280
0
163
508
-391
132
0
-31
283
-120
1,956
0
76
606
1,274
3,419
0
-171
335
3,255
17 Change in U.S. private assets abroad (increase, - ) 3
18
Bank-reported claims
19
Nonbank-reported claims
20
U.S. purchase of foreign securities, net
21
U.S. direct investments abroad, net 3
-13,685
-11,127
5,019
-4,756
-2,821
-24,711
-1,323
1,361
-7,481
-17,268
-94,374
-59,039
-3,986
-3,302
-28,047
-25,303
-14,734
-1,894
-1,149
-7,526
-23,304
-18,878
685
620
-5,731
-32,351
-31,800
170
3,113
-3,834
13,352
25,686
-1,163
-1,345
-9,826
-24,747
-20,195
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 liabilities 4
26
Other U.S. liabilities reported by U.S. banks
27
Other foreign official assets
2,987
4,690
13
586
555
-2,857
-1,140
-838
-301
823
645
-1,469
34,698
34,515
-1,214
1,723
554
15,568
14,538
-644
925
1,280
-531
15,551
12,167
-276
999
2,963
-302
1,003
4,572
-117
-607
-2,435
-410
13,953
12,145
-1,381
3,611
-360
9,389
11,082
256
-1,501
-135
-313
28 Change in foreign private assets in the United States
(increase, + r
U.S. bank-reported liabilities
U.S. nonbank-reported liabilities
Foreign private purchases of U.S. Treasury securities, net
Foreign purchases of other U.S. securities, net
Foreign direct investments in the United States, net 3
99,481
33,849
4,704
23,001
12,568
25,359
131,012
41,045
-450
20,433
50,962
19,022
178,689
77,350
-2,791
8,275
70,802
25,053
33,475
3,899
-1,553
3,705
22,888
4,536
54,040
30,360
609
17,074
6,077
57,428
34,604
1,035
-3,074
12,269
12,594
12,802
-13,614
1,761
-1,570
18,499
7,726
'-2,562
15,858
7,215
0
26,837
0
17,920
0
23,947
0
10,241
-2,044
0
-8,530
-4,153
0
11,750
3,904
0
-5,504
2,652
0
17,557
-1,987
26,837
17,920
23,947
12,285
-4,377
7,846
-8,156
19,544
-3,130
-3,858
312
16
280
132
1,956
3,419
2,401
-1,963
32,975
14,643
14,552
1,610
15,334
10,890
-4,504
-6,709
-8,508
-2,166
-3,023
-5,195
-2,901
-2,626
153
46
101
11
19
53
1 Balance on current account
2
Not seasonally adjusted
3
4
5
6
7
8
9
10
Merchandise trade balance 2
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net 3
Other service transactions, net
Remittances, pensions, and other transfers
U.S. government grants (excluding military)
29
30
31
32
33
34 Allocation of SDRs
35 Discrepancy
36
Owing to seasonal adjustments
37
Statistical discrepancy in recorded data before seasonal
adjustment
-80
-62
" "93"
-4,645
35,661
15,150
MEMO
Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in the United States (increase, +)
excluding line 25
40 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 22
above)
41 Transfers under military grant programs (excluded from
lines 4, 6, and 10 above)
38
39
1. Seasonal factors are not calculated for lines
38-41.
2. Data are on an international accounts (IA)
basis data, shown in table 3.11, for reasons of
exports are excluded from merchandise data and
3. Includes reinvested earnings.
6 , 1 0 , 12-16, 18-20, 22-34, and
basis. Differs from the Census
coverage and timing. Military
are included in line 6.
26
4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business
(Department of Commerce).
A54
International Statistics • November 1987
3.11 U.S. FOREIGN TRADE 1
Millions of dollars; monthly data are not seasonally adjusted.
1987
Item
1
EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments, f.a.s. value
2
G E N E R A L IMPORTS including
merchandise for immediate
consumption plus entries into
bonded warehouses, c.i.f. value . . . .
3
Trade balance
1984
223,976
1985
218,815
1986
226,808
Jan.
Feb.
Mar.
Apr.
May
June
July
16,755
19,360
21,776
20,496
20,784
21,126
21,008
346,364
352,463
382,964
28,692
33,725
34,694
33,459
34,822
36,838
37,483
-122,389
-133,648
-156,156
-11,937
-14,365
-12,918
-12,963
-14,039
-15,711
-16,475
1. The Census basis data differ from merchandise trade data shown in table
3.10, U.S. International Transactions Summary, for reasons of coverage and
timing. On the export side, the largest adjustment is the exclusion of military sales
(which are combined with other military transactions and reported separately in
the "service a c c o u n t " in table 3.10, line 6). On the import side, additions are made
for gold, ship purchases, imports of electricity from Canada, and other transac-
tions; military payments are excluded and shown separately as indicated above.
As of Jan. 1, 1987 census data are released 45 days after the end of the month.
Total exports and the trade balance reflect adjustments for undocumented exports
to Canada.
SOURCE. FT900 "Summary of U.S. Export and Import Merchandise T r a d e "
(Department of Commerce, Bureau of the Census).
3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period
1987
1985
Type
1986
Feb.
Mar.
Apr.
May
June
July
Aug.'
1
Total
34,934
43,186
48,517
49,358
48,824
46,591
45,913
45,140
44,318
45,944
2
Gold stock, including Exchange Stabilization Fund 1
11,096
11,090
11,064
11,085
11,081
11,076
11,070
11,069
11,069
11,068
3
Special drawing rights 2 ' 3 .
5,641
7,293
8,395
8,615
8,740
8,879
8,904
8,856
8,813
9,174
4
Reserve position in International Monetary Fund
11,541
11,947
11,730
11,699
11,711
11,745
11,517
11,313
10,964
11,116
6,656
12,856
17,328
17,959
17,292
14,891
14,422
13,902
13,472
14,586
5
Foreign currencies
4
1. Gold held under earmark at Federal Reserve Banks for foreign and international accounts is not included in the gold stock of the United States; see table
3.13. Gold stock is valued at $42.22 per fine troy ounce.
2. Beginning July 1974, the I M F 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 I M F 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.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1987
Assets
1984
1985
1986
Feb.
1 Deposits
Assets held in custody
2 U . S . Treasury securities
3 Earmarked gold 2
Apr.
May
June
July
Aug."
267
480
287
255
268
342
319
318
261
294
118,000
14,242
121,004
14,245
155,835
14,048
160,942
14,046
167,423
14,036
172,929
14,031
175,849
14,031
176,657
14,034
171,269
14,010
179,484
14,022
1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
2. Earmarked gold is valued at $42.22 per fine troy ounce.
Mar.
NOTE. Excludes deposits and U.S. Treasury securities held for international
and regional organizations. Earmarked gold is gold held for foreign and international accounts and is not included in the gold stock of the United States.
Summary Statistics
3.14
FOREIGN B R A N C H E S OF U.S. B A N K S
A55
Balance Sheet Data 1
Millions of dollars, end of period
1987
Asset account
1984
1985
1986
Jan.
Feb.
Mar.
Apr.
May
June
July p
All foreign countries
1 Total, all currencies
2 Claims on United States
Parent bank
4
Other banks in United States
5
Nonbanks
6 Claims on foreigners
7
Other branches of parent bank
8
Banks
9
Public borrowers
Nonbank foreigners
10
453,656
458,012
456,628
458,305'
457,819
457,007
485,166
487,436
475,068
470,234
113,393
78,109
13,664
21,620
320,162
95,184
100,397
23,343
101,238
119,706
87,201
13,057
19,448
315,676
91,399
102,960
23,478
97,839
114,685
83,492
13,685
17,508
312,833
96,281
105,237
23,584
87,731
116,039'
83,96C
12,714
19,365
309,881'
92,515'
105,386'
22,573
89,407
114,450
82,588
13,158
18,704
310,687
89,656
109,748
22,418
88,865
112,094
81,677
13,044
17,373
310,819
89,200
109,580
22,666
89,373
128,069
93,753
15,277
19,039
321,699
93,669
115,561
22,765
89,704
126,916
92,218
16,990
17,708
328,087
101,309
113,971
23,295
89,512
123,335
89,395
15,956
17,984
319,872
101,232
107,130
22,684
88,826
123,593
89,800
14,207
19,586
313,612
96,582
110,069
21,412
85,549
20,101
22,630
29,110
32,385'
32,682
34,094
35,398
32,433
31,861
33,029
12 Total payable in U.S. dollars
350,636
336,520
317,487
309,719'
311,669
306,431
329,259
336,235
329,380
322,130
n Claims on United States
14
Parent bank
15
Other banks in United States
16
Nonbanks
17 Claims on foreigners
18
Other branches of parent bank
19
Banks
20
Public borrowers
Nonbank foreigners
21
111,426
77,229
13,500
20,697
228,600
78,746
76,940
17,626
55,288
116,638
85,971
12,454
18,213
210,129
72,727
71,868
17,260
48,274
110,742
82,082
12,830
15,830
194,941
72,197
66,421
16,586
39,737
111,371'
82,198'
11,531
17,642
186,521'
66,704'
63,610'
16,457
39,750
110,011
81,029
12,102
16,880
189,205
64,550
68,320
16,320
40,015
107,245
79,817
11,907
15,521
185,541
63,983
65,997
16,347
39,214
122,278
91,798
13,468
17,012
192,715
66,916
69,808
16,512
39,479
121,458
90,182
15,354
15,922
201,261
75,014
69,395
16,812
40,040
118,346
87,559
14,644
16,143
198,412
75,771
66,877
16,271
39,493
118,453
87,786
12,682
17,985
190,531
72,515
65,618
15,062
37,336
10,610
9,753
11,804
11,827'
12,453
13,645
14,266
13,516
12,622
13,146
11 Other assets
22 Other assets
United Kingdom
23 Total, all currencies
24 Claims on United States
25
Parent bank
26
Other banks in United States
27
Nonbanks
28 Claims on foreigners
29
Other branches of parent bank
30
Banks
31
Public borrowers
Nonbank foreigners
32
33 Other assets
34 Total payable in U.S. dollars
35 Claims on United States
36
Parent bank
37
Other banks in United States
38
Nonbanks
39 Claims on foreigners
40
Other branches of parent bank
41
Banks
42
Public borrowers
Nonbank foreigners
43
44 Other assets
144,385
148,599
140,917
144,093
146,188
145,486
149,998
154,371
146,678
149,760
27,675
21,862
1,429
4,384
111,828
37,953
37,443
5,334
31,098
33,157
26,970
1,106
5,081
110,217
31,576
39,250
5,644
33,747
24,599
19,085
1,612
3,902
109,508
33,422
39,468
4,990
31,628
28,720
23,330
1,220
4,170
108,720
30,218
40,677
4,942
32,883
28,851
23,326
1,258
4,267
110,274
29,575
43,189
4,983
32,527
28,503
23,303
1,288
3,912
109,297
28,782
42,537
4,897
33,081
31,001
25,315
1,564
4,122
111,113
29,936
42,961
4,964
33,252
34,427
28,935
1,507
3,985
112,997
33,412
41,241
5,234
33,110
30,859
25,944
1,194
3,721
107,789
32,641
37,181
4,684
33,283
32,694
27,288
1,536
3,870
108,328
31,241
41,219
4,617
31,251
4,882
5,225
6,810
6,653
7,063
7,686
7,884
6,947
8,030
8,738
97,568
95,319
99,398
104,622
97,672
99,170
112,809
108,626
95,028
95,359
26,868
21,495
1,363
4,010
82,945
33,607
26,805
4,030
18,503
32,092
26,568
1,005
4,519
73,475
26,011
26,139
3,999
17,326
23,193
18,526
1,475
3,192
68,138
26,361
23,251
3,677
14,849
27,070
22,673
996
3,401
65,022
22,720
23,629
3,681
14,992
27,290
22,749
1,061
3,480
66,872
22,578
25,685
3,716
14,893
26,665
22,662
980
3,023
64,466
21,785
24,225
3,660
14,796
29,066
24,689
1,192
3,185
66,257
22,339
24,962
3,712
15,244
32,542
28,228
1,157
3,157
68,469
25,921
23,263
3,785
15,500
29,252
25,286
950
3,016
64,676
25,409
20,998
3,470
14,799
31,076
26,661
1,293
3,122
64,024
23,827
22,975
3,400
13,822
2,996
3,059
3,697
3,267
3,406
4,188
4,075
3,611
3,744
4,070
Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
47
Parent bank
48
Other banks in United States
49
Nonbanks
50 Claims on foreigners
51
Other branches of parent bank
52
Banks
53
Public borrowers
54
Nonbank foreigners
55 Other assets
56 Total payable in U.S. dollars
146,811
142,055
142,592
135,627'
133,229
134,189
146,776
141,668
142,048
140,355
77,296
49,449
11,544
16,303
65,598
17,661
30,246
6,089
11,602
74,864
50,553
11,204
13,107
63,882
19,042
28,192
6,458
10,190
78,170
54,575
11,156
12,439
59,883
17,296
27,476
6,929
8,182
73,418'
48,811'
10,625
13,982
57,05C
15,483'
26,366'
7,026
8,175
68,873
44,759
10,924
13,190
59,036
15,481
28,139
6,974
8,442
67,586
44,502
10,855
12,229
60,766
16,529
28,568
7,038
8,631
78,248
52,086
12,649
13,513
62,770
16,562
30,917
7,120
8,171
73,351
46,486
14,494
12,371
63,021
15,775
31,352
7,304
8,590
72,476
45,910
13,659
12,907
65,224
18,873
30,934
7,025
8,392
72,678
46,279
11,713
14,686
62,965
17,493
30,317
7,046
8,109
3,917
3,309
4,539
5,159'
5,320
5,837
5,758
5,296
4,348
4,712
141,562
136,794
136,813
129,474'
126,605
127,160
138,784
133,323
135,204
131,482
1. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for " s h e l l " branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
A56
3.14
International Statistics • November 1987
Continued
1987
Liability account
1985
Jan.
Feb.
Mar.
Apr.
May
June
July"
All foreign countries
453,656
458,012
456,628
458,305r
457,819
457,007
485,166
487,436
475,068
470,234
58 Negotiable CDs
59 To United States
Parent bank
60
61
Other banks in United States
62
Nonbanks
37,725
147,583
78,739
18,409
50,435
34,607
155,538
83,914
16,894
54,730
31,629
151,632
82,561
15,646
53,425
33,395
140,391
70,071
15,051
55,269
36,074
140,341
73,095
13,602
53,644
34,873
141,693
71,092
13,695
56,906
33,155
152,698
75,080
16,913
60,705
34,360
149,979'
74,551
16,898'
58,530
31,776
149,970
78,369
16,560
55,041
32,823
143,267
71,670
14,980
56,617
63 To foreigners
64
Other branches of parent bank
65
Banks
66
Official institutions
67
Nonbank foreigners
68 Other liabilities
247,907
93,909
78,203
20,281
55,514
20,441
245,939
89,529
76,814
19,520
60,076
21,928
253,775
95,146
77,809
17,835
62,985
19,592
263,759r
90,303'
88,495r
19,532
65,429
20,760'
261,649
88,524
86,037
19,818
67,270
19,755
260,659
87,867
84,976
20,591
67,225
19,782
278,022
94,590
92,704
21,293
69,435
21,291
284,136'
101,777
90,246'
23,058
69,055
18,961
274,085
100,760
81,619
21,965
69,741
19,237
274,587
95,376
87,904
21,528
69,779
19,557
69 Total payable in U.S. dollars
367,145
353,712
336,406
323,900'
326,319
321,706
340,408
347,150
340,851
334,061
70 Negotiable CDs 2
71 To United States
Parent bank
72
Other banks in United States
73
74
Nonbanks
35,227
143,571
76,254
17,935
49,382
31,063
150,162
80,888
16,264
53,010
28,466
143,650
78,472
14,609
50,569
29,921
131,876
65,443
14,047
52,386
32,407
131,912
68,540
12,505
50,867
31,148
132,765
65,981
12,593
54,191
29,505
141,465
68,403
15,455
57,607
30,763
141,077'
70,067
15,732'
55,278
27,929
141,508
74,225
15,348
51,935
28,781
134,564
67,001
13,870
53,693
75 Xo foreigners
76
Other branches of parent bank
77
Banks
78
Official institutions
79
Nonbank foreigners
80 Other liabilities
178,260
77,770
45,123
15,773
39,594
10,087
163,583
71,078
37,365
14,359
40,781
8,904
156,806
71,181
33,850
12,371
39,404
7,484
154,887'
64,380"
36,864
13,688
39,955
7,216'
154,416
63,640
36,816
13,189
40,771
7,584
149,949
62,172
35,116
13,392
39,269
7,844
161,216
67,278
39,111
14,318
40,509
8,222
167,674'
74,769
36,226'
16,068
40,611
7,636
163,530
74,136
32,202
15,687
41,505
7,884
162,776
70,911
35,250
15,806
40,809
7,940
57 Total, all currencies
2
United Kingdom
144,385
148,599
140,917
144,093
146,188
145,486
149,998
154,371
146,678
149,760
82 Negotiable CDs 2
83 To United States
84
Parent bank
85
Other banks in United States
86
Nonabnks
34,413
25,250
14,651
3,125
7,474
31,260
29,422
19,330
2,974
7,118
27,781
24,657
14,469
2,649
7,539
29,432
19,465
10,004
2,154
7,307
32,233
22,501
12,735
2,154
7,612
30,968
21,433
12,332
1,816
7,285
29,311
23,936
13,170
2,205
8,561
30,226
26,291
15,145
2,273
8,873
27,511
24,512
14,745
2,109
7,658
28,590
24,347
14,012
2,019
8,316
87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities
77,424
21,631
30,436
10,154
15,203
7,298
78,525
23,389
28,581
9,676
16,879
9,392
79,498
25,036
30,877
6,836
16,749
8,981
86,229
23,595
36,479
8,484
17,671
8,967
82,418
21,230
35,434
7,832
17,922
9,036
83,723
21,371
35,971
7,827
18,554
9,362
87,381
22,421
37,562
8,871
18,527
9,370
89,673
26,367
35,282
10,004
18,020
8,181
86,041
25,350
32,334
9,450
18,907
8,614
87,942
23,572
35,647
9,241
19,482
8,881
117,497
112,697
99,707
98,741
101,971
98,967
101,793
106,093
100,031
101,593
94 Negotiable CDs 2
95 To United States
96
Parent bank
97
Other banks in United States
98
Nonbanks
33,070
24,105
14,339
2,980
6,786
29,337
27,756
18,956
2,826
5,974
26,169
22,075
14,021
2,325
5,729
27,701
16,829
9,451
1,887
5,491
30,175
19,894
12,157
1,926
5,811
28,868
18,940
11,606
1,602
5,732
27,189
21,144
12,352
2,021
6,771
28,345
23,561
14,528
2,027
7,006
25,695
21,850
14,252
1,899
5,699
26,397
21,689
13,401
1,774
6,514
99 To foreigners
Other branches of parent bank
100
101
Banks
102
Official institutions
Nonbank foreigners
103
104 Other liabilities
56,923
18,294
18,356
8,871
11,402
3,399
51,980
18,493
14,344
7,661
11,482
3,624
48,138
17,951
15,203
4,934
10,050
3,325
51,174
16,386
18,626
6,096
10,066
3,037
48,610
14,691
18,207
5,176
10,536
3,292
47,531
14,471
18,027
4,924
10,109
3,628
49,708
14,367
19,498
5,786
10,057
3,752
51,029
18,430
15,555
7,214
9,830
3,158
49,089
17,654
13,864
6,985
10,586
3,397
50,294
16,171
16,330
7,203
10,590
3,213
81 Total all currencies
93 Total payable in U.S. dollars
Bahamas and Caymans
105 Total, all currencies
146,811
142,055
142,592
135,627'
133,229
134,189
146,776
141,668
142,048
140,355
106 Negotiable CDs 2
107 To United States
Parent bank
108
Other banks in United States
109
110
Nonbanks
615
102,955
47,162
13,938
41,855
610
103,813
44,811
12,778
46,224
847
105,248
48,648
11,715
44,885
995
99,052
40,869
11,687
46,496
855
95,516
40,409
10,151
44,956
813
98,912
39,851
10,568
48,493
883
107,367
43,315
13,345
50,707
1,092
101,532'
40,052
13,175'
48,305
1,067
102,875
43,503
13,143
46,229
949
99,073
39,967
11,966
47,140
40,320
16,782
12,405
2,054
9,079
2,921
35,053
14,075
10,669
1,776
8,533
2,579
34,400
12,631
8,617
2,719
10,433
2,097
33,536'
12,323'
8,107'
2,808
10,298
2,044'
34,758
12,972
8,070
3,013
10,703
2,100
32,501
11,673
8,140
2,836
9,852
1,963
36,491
13,891
9,452
2,937
10,211
2,035
36,835'
13,359
9,895'
3,072
10,509
2,209
36,014
14,023
7,954
3,185
10,852
2,092
38,168
14,803
9,565
3,263
10,537
2,165
143,582
138,322
138,774
131,572'
129,183
129,400
140,796
136,679
137,628
135,219
111 To foreigners
112
Other branches of parent bank
113
Banks
114
Official institutions
115
Nonbank foreigners
116 Other liabilities
117 Total payable in U.S. dollars
,...
2. Before June 1984, liabilities on negotiable CDs were included in liabilities to
the United States or liabilities to foreigners, according to the address of the initial
purchaser.
Summary Statistics
3.15
A57
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1987
Item
1 Total1
2
3
4
5
6
7
8
9
10
11
12
By type
Liabilities reported by banks in the United States
U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes
Marketable
Nonmarketable
U.S. securities other than U.S. Treasury securities
By area
Western Europe 1
Canada
Latin America and Caribbean
Other countries 6
1985
1986
Jan.
Feb.
Mar.
Apr.
May
June
Julyf
178,380
211,706
213,416
215,512
227,043
235,937
236,217r
237,940
231,830
26,734
53,252
27,626
75,650
27,629
75,718
29,438
75,434
31,237
79,629
32,661
84,640
31,501r
81,553
31,103
80,663
30,853
73,435
77,154
3,550
17,690
91,534
1,300
15,596
93,032
1,300
15,737
93,866
1,300
15,474
99,703
1,300
15,174
102,192
1,300
15,144
106,638
1,300
15,225
110,357
700
15,117
112,610
500
14,432
74,447
1,315
11,148
86,448
1,824
3,199
88,289
2,004
8,367
106,024
1,503
5,519
89,681
3,383
7,680
107,448
1,300
3,926
90,914
3,761
7,425
108,886
1,164
3,362
99,711
5,110
8,241
108,662
1,192
4,127
105,720
3,922
9,290
109,991
1,284
5,728
108,171r
3,482
7,923
109,641
1,628
5,372
110,643
3,502
7,519
108,831
1,405
6,040
106,768
3,559
7,920
105,948
1,590
6,044
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.
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.
3.16 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies1
Millions of dollars, end of period
1986
Item
1 Banks' own liabilities
2 Banks' own claims
3
Deposits
4
Other claims
5 Claims of banks' domestic customers 1
1983
5,219
7,231
2,731
4,501
1,059
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
2. Assets owned by customers of the reporting bank located in the United
1984
8,586
11,984
4,998
6,986
569
1987
1985
15,368
16,294
8,437
7,857
580
Sept.
Dec.
Mar.
June
29,467
24,124
13,220
10,904
1,597
29,404
25,150
13,173
11,977
2,508
36,319
32,261
13,722
18,539
2,034
35,817
32,762
10,884
21,878
889
States that represent claims on foreigners held by reporting banks for the accounts
of the domestic customers.
A58
3.17
International Statistics • November 1987
L I A B I L I T I E S TO F O R E I G N E R S
Payable in U . S . dollars
Reported by Banks in the United States
Millions of dollars, end of period
1987
Holder and type of liability
1984
1985
1986
Jan.
Feb.
Mar.
Apr.
May
June
July"
1 All foreigners
407,306
435,726
538,895
525,505
522,597
524,768
552,326
556,659'
541,043
536,616
2 Banks' own liabilities
3
Demand deposits
4
Time deposits
J
Other.
6
Own foreign offices
306,898
19,571
110,413
26,268
150,646
341,070
21,107
117,278
29,305
173,381
404,760
23,788
131,136
40,880
208,956
392,094
22,490
125,207
39,549
204,848
388,147
22,449
125,728
40,611
199,359
389,715
22,303
125,129
42,458
199,825
412,186
22,174
132,702
46,034
211,275
416,649'
22,973
133,144'
46,547'
213,985'
401,866
23,221
133,031
41,676
203,938
403,458
20,536
134,910
42,613
205,400
100,408
76,368
94,656
69,133
134,134
90,257
133,411
89,278
134,450
90,695
135,054
93,048
140,141
97,789
140,010
95,959
139,178
93,688
133,158
88,193
18,747
5,293
17,964
7,558
16,523
27,354
14,656
29,477
13,839
29,916
14,744
27,262
14,625
27,727
15,953
28,098
16,414
29,076
15,488
29,477
11 Nonmonetary international and regional
organizations7
4,454
5,821
4,699
5,081
4,520
3,889
7,344
4,422'
3,979
5,664
12 Banks' own liabilities
13
Demand deposits
14
Time deposits
15
Other 2
2,014
254
1,267
493
2,621
85
2,067
469
2,850
199
2,066
584
3,732
183
2,515
1,034
2,193
157
1,488
548
2,510
246
1,230
1,033
5,750
159
3,100
2,490
2,758'
106
960
1,693'
2,489
72
967
1,451
2,085
78
584
1,422
16 Banks' custody liabilities4
17
U.S. Treasury bills and certificates
18
Other negotiable and readily transferable
instruments 6
19
Other
2,440
916
3,200
1,736
1,849
259
1,349
86
2,326
1,213
1,379
154
1,594
428
1,664
440
1,490
266
3,579
2,339
1,524
0
1,464
0
1,590
0
1,261
2
1,112
1
1,225
0
1,152
14
1,224
0
1,224
0
1,240
0
20 Official institutions8
86,065
79,985
103,275
103,346
104,872
110,866
117,302
113,054'
111,766
104,288
21 Banks' own liabilities
22
Demand deposits
23
Time deposits
24
Other 2
19,039
1,823
9,374
7,842
20,835
2,077
10,949
7,809
25,134
2,267
10,752
12,115
25,403
1,487
11,335
12,580
26,880
1,513
11,385
13,982
28,103
1,923
11,135
15,044
29,675
1,829
12,527
15,318
28,639'
2,089
11,077'
15,473'
27,713
1,745
12,626
13,342
27,689
1,713
13,493
12,483
25 Banks' custody liabilities4
26
U.S. Treasury bills and certificates 5
Other negotiable and readily transferable
instruments 6
28
Other
67,026
59,976
59,150
53,252
78,142
75,650
77,944
75,718
77,992
75,434
82,763
79,629
87,627
84,640
84,415
81,553
84,052
80,663
76,599
73,435
6,966
84
5,824
75
2,347
145
2,158
69
2,418
140
3,001
132
2,832
154
2,715
147
3,141
248
2,944
220
29 Banks9
248,893
275,589
350,491
339,648
335,517
334,231
350,499
359,172'
347,483
349,863
30 Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
ii
Time 2deposits
34
Other
35
Own foreign offices 3
225,368
74,722
10,556
47,095
17,071
150,646
252,723
79,341
10,271
49,510
19,561
173,381
309,928
100,971
10,303
64,245
26,424
208,956
297,037
92,189
10,434
57,912
23,844
204,848
293,144
93,785
10,103
60,007
23,675
199,359
295,092
95,268
9,510
61,856
23,902
199,825
311,360
100,084
9,781
64,926
25,378
211,275
319,410'
105,425'
10,558
68,063'
26,804'
213,985'
306,302
102,364
10,301
67,548
24,515
203,938
308,182
102,783
8,588
67,757
26,438
205,400
36 Banks' custody liabilities4
37
U.S. Treasury bills and certificates
38
Other negotiable and readily transferable
instruments 6
39
Other
23,525
11,448
22,866
9,832
40,563
9,962
42,611
9,826
42,373
10,486
39,138
9,744
39,140
9,538
39,761
9,774
41,181
9,066
41,681
9,142
7,236
4,841
6,040
6,994
5,513
25,089
5,433
27,352
4,340
27,547
4,367
25,026
4,256
25,346
4,376
25,611
5,653
26,462
5,697
26,841
40 Other foreigners
67,894
74,331
80,430
77,429
77,688
75,783
77,181
80,011
77,815
76,801
41 Banks' own liabilities
42
Demand deposits
43
Time deposits
44
Other 2 .
60,477
6,938
52,678
861
64,892
8,673
54,752
1,467
66,849
11,019
54,073
1,757
65,923
10,386
53,446
2,091
65,929
10,676
52,848
2,405
64,009
10,623
50,908
2,479
65,401
10,405
52,148
2,848
65,841
10,220
53,043
2,578
65,361
11,104
51,889
2,367
65,502
10,157
53,075
2,270
7,417
4,029
9,439
4,314
13,580
4,387
11,507
3,648
11,759
3,563
11,773
3,520
11,780
3,183
14,169
4,192
12,454
3,694
11,299
3,276
3,021
367
4,636
489
7,074
2,120
5,804
2,055
5,969
2,227
6,150
2,103
6,385
2,212
7,638
2,340
6,395
2,366
5,607
2,415
10,476
9,845
7,343
7,191
7,722
7,694
7,976
8,694'
7,356
6,307
7 Banks' custody liabilities4
8
U.S. Treasury bills and certificates 5
9
Other negotiable and readily transferable
instruments
10
Other
45 Banks' custody liabilities4
46
U.S. Treasury bills and certificates
47
Other negotiable and readily transferable
instruments 6
48
Other
49 MEMO: Negotiable time certificates of deposit in
custody for foreigners
1. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due to head office or parent foreign bank, and
foreign branches, agencies or wholly owned subsidiaries of head office or parent
foreign bank.
4. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
5. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments, and the Bank for
International Settlements.
9. Excludes central banks, which are included in "Official institutions."
Nonbank-Reported
3.17
Data
Continued
1987
Area and country
1984
1985
1986
Jan.
Feb.
Mar.
Apr.
May
June
July"
1
407,306
435,726
538,895
525,505
522,597
524,768
552,326
556,659"
541,043
536,616
2 Foreign countries
402,852
429,905
534,196
520,424
518,077
520,879
544,982
552,237"
537,064
530,953
153,145
615
4,114
438
418
12,701
3,358
699
10,762
4,731
1,548
597
2,082
1,676
31,740
584
68,671
602
7,192
79
537
164,114
693
5,243
513
496
15,541
4,835
666
9,667
4,212
948
652
2,114
1,422
29,020
429
76,728
673
9,635
105
523
180,871
1,186
6,788
485
580
22,850
5,823
706
10,875
5,558
737
700
2,393
889
30,967
454
85,352
631
3,117
80
702
179,253
972
6,729
449
565
21,372
6,813
745
9,375
5,155
678
657
2,238
884
28,913
375
87,911
554
4,309
21
535
181,082
928
7,587
520
762
22,654
5,907
749
8,489
5,354
554
709
2,333
1,062
27,555
359
90,105
565
4,319
23
546
182,527
798
7,230
623
937
23,835
7,412
641
10,101
4,968
495
689
2,224
1,065
27,544
412
88,390
564
3,902
30
669
191,655
1,057
7,904
425
942
27,399
6,419
601
11,337
5,967
567
660
2,233
1,251
26,500
833
91,765
526
4,572
32
665
206,723"
921
9,335
459
909
27,858
10,229"
643
11,726
5,442
571
607
2,194
1,4%
27,054"
378
102,308
429
3,594"
37
532"
204,145
974
9,558
425
616
27,947
8,024
691
11,943
4,787
502
704
2,322
1,2%
28,243
455
99,701
433
4,818
36
671
198,547
795
9,140
486
467
25,454
6,958
667
10,019
5,101
581
586
2,105
1,235
25,798
369
102,073
459
5,049
555
647
3 Europe
4
Austria
5 Belgium-Luxembourg
6
Denmark
Finland
7
8
France
9
Germany
Greece
10
11
Italy
Netherlands
1?
13
Norway
Portugal
14
IS
Spain
Sweden
16
Switzerland
17
18 Turkey
19
United Kingdom
Yugoslavia
70
Other Western Europe
71
77
U.S.S.R
23
Other Eastern Europe 2
16,059
17,427
26,256
26,105
25,189
26,553
25,294
24,522
21,913
21,216
153,381
4,394
56,897
2,370
5,275
36,773
2,001
2,514
10
1,092
896
183
12,303
4,220
6,951
1,266
1,394
10,545
4,297
167,856
6,032
57,657
2,765
5,373
42,674
2,049
3,104
11
1,239
1,071
122
14,060
4,875
7,514
1,167
1,552
11,922
4,668
208,949
4,754
73,267
2,951
4,321
71,151
2,053
4,281
7
1,235
1,122
136
13,631
4,914
6,865
1,163
1,537
10,452
5,109
195,666
4,499
64.998
2,282
3,813
66,775
2,208
4,273
6
1,049
1,124
149
13,584
5,593
7,361
1,110
1,609
10,494
4,741
191,636
4,668
62,970
2,506
3,797
65,509
2,046
4,268
7
1,120
1,081
145
13,423
5,652
6,475
1,131
1,583
10,362
4,894
195,412
4,725
62,581
2,293
3,693
69,860
2,060
4,271
6
1,014
1,082
230
13,207
5,643
6,664
1,062
1,630
10,365
5,026
206,806
4,406
72,101
2,180
3,616
69,213
2,253
4,349
6
1,044
1,164
149
15,053
5,706
7,091
1,086
1,520
10,587
5,280
204,810"
4,7%"
69,418"
2,594
3,960
70,471"
2,034
4,289
6"
1,093
1,167
189
13,955"
5,171
7,341
1,095
1,507
10,292
5,432
195,666
4,795
69,330
2,172
3,673
65,306
1,972
4,363
8
1,121
1,122
158
13,857
5,760
7,125
1,137
1,504
10,170
5,097
199,430
6,060
61,479
2,400
3,780
72,311
2,041
4,430
8
1,090
1,110
146
14,563
5,155
6,983
1,145
1,536
10,089
5,104
71,187
72,280
108,969
112,058
113,439
108,942
112,345
107,784
106,701
102,702
1,153
4,990
6,581
507
1,033
1,268
21,640
1,730
1,383
1,257
16,804
12,841
1,607
7,786
8,067
712
1,466
1,601
23,077
1,665
1,140
1,358
14,523
9,276
1,476
18,903
9,518
673
1,548
1,890
47,437
1,141
1,865
1,120
12,356
11,042
2,046
19,553
9,388
663
1,410
1,761
49,997
1,058
1,811
1,282
12,322
10,768
1,650
21,127
9,329
686
1,591
1,892
50,921
1,017
1,779
1,224
12,104
10,120
1,973
20,106
9,160
500
1,414
1,666
48,983
1,129
1,737
1,235
11,581
9,456
1,899
19,460
9,357
526
1,460
1,302
53,392
1,177
1,426
1,131
11,399
9,816
1,842
17,333
9,365
569
1,243
1,084
50,434
1,343
1,312
1,174
10,870"
11,214"
1,737
16,308
9,122
714
1,773
1,229
49,494
1,397
1,222
1,144
11,450
11,111
1,744
16,421
8,592
572
1,404
928
46,506
1,410
1,144
1,093
11,672
11,215
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Oil-exporting countries 4
67
Other Africa
63
3,396
647
118
328
153
1,189
961
4,883
1,363
163
388
163
1,494
1,312
4,019
706
92
271
74
1,518
1,358
3,661
607
74
341
54
1,336
1,248
3,499
791
76
201
42
1,156
1,233
3,457
753
99
178
40
1,108
1,278
3,702
847
101
287
39
1,212
1,216
4,003
1,052
86
198
74
1,267
1,326
3,757
1,009
106
188
58
1,111
1,286
4,007
1,103
75
229
64
1,275
1,261
64 Other countries
65
Australia
All other
66
5,684
5,300
384
3,347
2,779
568
5,131
4,209
922
3,680
2,683
997
3,232
2,465
767
3,988
3,027
960
5,179
4,292
888
4,394
3,589
805
4,881
4,113
768
5,051
4,333
718
67 Nonmonetary international and regional organizations
International
68
69
Latin American regional
70
Other regional 5
4,454
3,747
587
120
5,821
4,806
894
121
4,699
3,512
1,033
154
5,081
3,958
960
164
4,520
3,606
762
152
3,889
2,897
788
204
7,344
6,075
850
420
4,422"
2,940"
994
488
3,979
2,577
1,047
356
5,664
4,204
1,075
384
24 Canada
75 Latin America and Caribbean
Argentina
76
Bahamas
71
78
Bermuda
79
Brazil
30
British West Indies
31
Chile
37
Colombia
33
Cuba
Ecuador
34
35
Guatemala
36
Mexico
37
Netherlands Antilles
38
39
Panama
40
Peru
Uruguay
41
Venezuela
4?
43
Other Latin America and Caribbean
44
45
46
47
48
49
50
51
57
53
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Korea
Philippines
Thailand
Middle-East oil-exporting countries
Other Asia
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."
A59
A60
3.18
International Statistics • November 1987
B A N K S ' O W N C L A I M S ON F O R E I G N E R S Reported by Banks in the United States
Payable in U . S . Dollars
Millions of dollars, end of period
1987
Area and country
1984
1985
1986
Jan.
Feb.
Mar.
Apr.
May
June
July"
1 Total
400,162
401,608
444,257
421,086
417,258
414,321
439,040
438,358'
433,330
423,295
2 Foreign countries
399,363
400,577
441,273
421,017
417,081
413,777
434,309
437,528'
431,198
421,852
99,014
433
4,794
648
898
9,157
1,306
817
9,119
1,356
675
1,243
2,884
2,230
2,123
1,130
56,185
1,886
596
142
1,389
106,413
598
5,772
706
823
9,124
1,267
991
8,848
1,258
706
1,058
1,908
2,219
3,171
1,200
62,566
1,964
998
130
1,107
107,347
728
7,503
692
947
11,369
1,818
648
9,042
3,299
654
706
1,459
1,945
3,049
1,541
58,282
1,836
540
345
944
100,775
641
7,556
650
797
9,058
2,269
635
7,898
2,077
741
677
1,479
2,280
2,622
1,469
55,856
1,775
522
396
1,379
102,234
549
8,905
624
1,050
9,960
1,725
634
7,337
2,090
766
679
1,637
2,422
2,413
1,436
56,387
1,769
477
401
971
99,393
660
8,083
651
1,003
9,858
1,632
535
6,991
2,371
667
737
1,768
2,464
2,338
1,577
54,035
1,840
781
367
1,032
108,154
750
8,544
574
1,127
10,816
1,371
460
7,536
3,075
683
615
1,977
2,417
2,905
1,559
59,864
1,763
670
375
1,073
116,651'
673'
9,956
569
1,046
12,076
1,508'
457
8,331
2,989
776
641
2,107
2,618
3,593
1,623
64,001'
1,803
515
357
1,012
114,196
762
9,777
744
1,046
12,037
1,548
456
8,406
5,794
774
659
1,848
2,333
2,611
1,785
59,705
1,755
581
582
993
108,372
702
10,194
642
1,048
11,771
2,008
433
6,770
4,482
830
645
1,822
2,290
2,459
1,761
56,733
1,762
601
420
999
3 Europe
4
Austria
5
Belgium-Luxembourg
Denmark
6
7
Finland
8
France
9
Germany
10
Greece
11
Italy
12
Netherlands
Norway
13
14
Portugal
15
Spain
Sweden
16
17
Switzerland
18 Turkey
19
United Kingdom
20
Yugoslavia
21
Other Western Europe 1
22
U.S.S.R
Other Eastern Europe 2
23
24 Canada
16,109
16,482
20,958
20,749
19,186
19,829
20,225
19,340'
19,071
18,652
207,862
11,050
58,009
592
26,315
38,205
6,839
3,499
0
2,420
158
252
34,885
1,350
7,707
2,384
1,088
11,017
2,091
202,674
11,462
58,258
499
25,283
38,881
6,603
3,249
0
2,390
194
224
31,799
1,340
6,645
1,947
960
10,871
2,067
208,852
12,089
59,547
418
25,666
46,306
6,543
2,819
0
2,449
140
198
30,607
1,039
5,434
1,643
940
11,078
1,938
195,571
12,114
52,090
415
25,798
41,128
6,475
2,801
10
2,425
133
199
30,289
960
5,270
1,635
937
11,028
1,864
196,337
12,211
52,952
376
25,810
41,074
6,603
2,743
1
2,422
145
199
29,999
945
5,204
1,626
932
11,185
1,910
199,037
12,162
53,679
532
26,082
42,774
6,412
2,692
6
2,338
135
192
29,817
992
5,543
1,593
959
11,282
1,845
209,196
12,129
62,639
740
25,986
43,256
6,412
2,686
9
2,381
120
189
30,119
1,202
5,771
1,601
957
11,089
1,910
204,286'
12,335
58,328'
592'
25.67C
44,343'
6,323'
2,650
9
2,372
115
184
30,056'
1,072
4,730'
1,599
962
11,046
1,900
202,311
12,256
56,809
302
25,478
43,571
6,554
2,649
0
2,354
109
182
30,297
1,364
4,948
1,565
950
11,032
1,890
200,554
12,172
52,884
387
25,975
44,347
6,490
2,743
337
2,396
107
268
31,072
1,118
4,631
1,567
949
11,245
1,868
66,316
66,212
96,198
95,989
91,767
87,783
88,990
89,564'
87,914
86,970
710
1,849
7,293
425
724
2,088
29,066
9,285
2,555
1,125
5,044
6,152
639
1,535
6,797
450
698
1,991
31,249
9,226
2,224
845
4,298
6,260
787
2,675
8,300
321
718
1,635
59,852
7,159
2,208
577
4,122
7,845
983
2,617
8,443
333
699
1,601
58,319
6,783
2,154
521
5,483
8,053
873
2,890
9,225
325
679
1,521
55,594
6,161
2,127
557
4,892
6,922
1,373
2,910
8,254
486
652
1,545
52,267
6,011
2,282
492
5,150
6,362
1,360
3,278
7,931
314
627
1,509
54,292
5,352
2,121
461
4,598
7,148
1,175
3,592
7,727'
379
657
1,459
55,172'
6,076'
2,064
540
3,697
7,009
993
3,313
7,646
429
677
1,445
55,108
5,314
2,109
552
3,808
6,518
935
2,487
7,416
417
639
1,559
54,960
5,010
2,210
565
3,913
6,858
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries
Other
63
6,615
728
583
2,795
18
842
1,649
5,407
721
575
1,942
20
630
1,520
4,621
567
598
1,531
28
688
1,208
4,618
577
590
1,534
36
725
1,156
4,678
593
585
1,548
42
743
1,168
4,853
618
584
1,550
42
856
1,204
4,795
574
565
1,578
41
801
1,236
4,876'
585
566
1,598'
43
840
1,246'
4,711
599
563
1,506
39
818
1,187
4,703
571
568
1,479
38
866
1,182
64 Other countries
65
Australia
All other
66
3,447
2,769
678
3,390
2,413
978
3,297
1,952
1,345
3,316
2,081
1,235
2,878
1,902
976
2,882
1,990
892
2,949
2,065
884
2,828
1,897
931
2,996
1,980
1,016
2,601
1,693
908
800
1,030
2,983
69
178
544
4,731
830'
2,132
1,443
25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
Brazil
29
British West Indies
30
31
Chile
32
Colombia
Cuba
33
34
Ecuador
35
Guatemala 3
36 Jamaica
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other Latin America and Caribbean
44
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
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."
Nonbank-Reported
Data
3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States Payable in U.S. Dollars
Millions of dollars, end of period
1987
Type of claim
1984
1986
1985
Jan.
Feb.
Mar.
Apr.
May r
June
July"
1 Total
433,078
430,489
478,221
421,086
417,258
445,899'
439,040
438,358
466,436
423,295
2
3
4
5
6
7
8
400,162
62,237
156,216
124,932
49,226
75,706
56,777
401,608
60,507
174,261
116,654
48,372
68,282
50,185
444,257
63,950
211,759
122,747
57,299
65,447
45,801
421,086
61,794
192,595
121,036
54,376
66,660
45,662
417,258
61,709
190,911
120,287
55,526
64,760
44,352
414,321
62,737
190,070
117,063
53,652
63,411
44,450
439,040
65,706
206,944
121,747
57,394
64,353
44,643
438,358
62,896
203,652
127,319
61,693
65,626
44,491
433,330
63,640
200,202
125,239
60,381
64,858
44,249
423,295
63,678
190,535
124,113
59,194
64,919
44,969
32,916
3,380
28,881
3,335
33,964
4,413
31,578'
3,402
33,106
3,474
23,805
19,332
24,044
20,551
21,384
5,732
6,214
5,508
37,103
28,487
25,616
40,714
38,102
43,994
Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices
Unaffiliated foreign banks
Deposits
Other
All other foreigners
9 Claims of banks' domestic customers 2 ...
11 Negotiable and readily transferable
12 Outstanding collections and other
7,625'
8,249
13 MEMO: Customer liability on
Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States 4 . . . .
25,449
46,583
44,404 R
45,675'
44,844
38,008
n.a.
3. Principally negotiable time certificates of deposit and bankers acceptances.
4. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see July 1979 BULLETIN, p.
1. U.S. banks: includes amounts due from own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due from head office or parent foreign bank,
and foreign branches, agencies, or wholly owned subsidiaries of head office or
parent foreign bank.
2. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the account
of their domestic customers.
3.20
49,528
23,449
550.
NOTE. Beginning April 1978, data for banks' own claims are given on a monthly
basis, but the data for claims of banks' own domestic customers are available on
a quarterly basis only.
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1986
Maturity ; by borrower and area
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
By borrower
Maturity of 1 year or less
Foreign public borrowers
All other foreigners
Maturity over 1 year
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 2
Maturity of over 1 year
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 2
1. Remaining time to maturity.
1983
1984
1987
1985
Sept.
Dec.
Mar.
June''
243,715
243,952
227,903
224,754
231,413
225,211
234,704
176,158
24,039
152,120
67,557
32,521
35,036
167,858
23,912
143,947
76,094
38,695
37,399
160,824
26,302
134,522
67,078
34,512
32,567
155,258
22,528
132,731
69,496
38,350
31,145
159,909
24,921
134,988
71,504
39,783
31,722
153,302
22,411
130,891
71,909
41,005
30904
165,552
23,360
142,192
69,152
40,173
28,979
56,117
6,211
73,660
34,403
4,199
1,569
58,498
6,028
62,791
33,504
4,442
2,593
56,585
6,401
63,328
27,966
3,753
2,791
59,428
6,199
58,212
26,505
3,071
1,845
61,227
5,840
56,050
29,476
2,858
4,458
57,806
5,504
54,078
29,538
3,145
3,231
67,811
5,531
55,282
30,594
2,978
3,355
13,576
1,857
43,888
4,850
2,286
1,101
9,605
1,882
56,144
5,323
2,033
1,107
7,634
1,805
50,674
4,502
1,538
926
7,230
1,930
54,137
3,976
1,479
744
6,826
1,930
56,337
4,081
1,534
795
6,954
1,936
56,623
4,197
1,626
573
6,558
1,632
55,361
3,442
1,522
638
2. Includes nonmonetary international and regional organizations.
A61
A62
International Statistics • November 1987
3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks 12
Billions of dollars, end of period
1985
Area or country
1 Total
1984
1986
1987
1985
June
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
June p
405.7
391.9
396.8
394.9
391.9
393.1
389.9
389.5
390.0
396.3
388.2
148.1
8.7
14.1
9.0
10.1
3.9
3.2
3.9
60.3
7.9
27.1
148.5
9.3
12.3
10.5
9.8
3.7
2.8
4.4
64.6
7.0
24.2
146.7
8.9
13.5
9.6
8.6
3.7
2.9
4.0
65.7
8.1
21.7
152.0
9.5
14.8
9.8
8.4
3.4
3.1
4.1
67.1
7.6
24.3
148.5
9.3
12.3
10.5
9.8
3.7
2.8
4.4
64.6
7.0
24.2
156.6
8.3
13.8
11.3
8.5
3.5
2.9
5.4
68.6
6.3
28.0
159.8r
9.0
15.1
11.5
9.3
3.4
2.9
5.6
69.0
6.9
27. r
158.7r
8.5
14.7
12.5
8.1
3.9
2.7
4.8
70.1
6.1
2i.y
157.8r
8.4
13.8
11.7
9.0
4.6
2.4
5.5
71.8
5.4
25.2r
163.6r
9.1
13.4
12.2
8.6
4.4
3.0
5.8
74.7r
5.2
27.2
158.5
8.4
12.6
11.0
7.5
7.3
2.4
5.7
72.4
4.6
26.4
13 Other developed countries
14
Austria
15
Denmark
16
Finland
17
Greece
18
Norway
19
Portugal
20
Spain
21
Turkey
22
Other Western Europe
23
South Africa
24
Australia
33.6
1.6
2.2
1.9
2.9
3.0
1.4
6.5
1.9
1.7
4.5
6.0
30.4
1.6
2.4
1.6
2.6
2.9
1.3
5.8
1.9
2.0
3.2
5.0
32.3
1.6
1.9
1.8
2.9
2.9
1.3
5.9
2.0
1.8
3.9
6.2
32.0
1.7
2.1
1.8
2.8
3.4
1.4
6.1
2.1
1.7
3.3
5.6
30.4
1.6
2.4
1.6
2.6
2.9
1.3
5.8
1.9
2.0
3.2
5.0
31.6
1.6
2.5
1.9
2.5
2.7
1.1
6.4
2.3
2.4
3.2
4.9
30.6
1.7
2.4
1.6
2.6
3.0
1.0
6.4
2.5
2.1
3.1
4.2
29.4
1.7
2.3
1.7
2.3
2.7
1.0
6.7
2.1
1.6
3.1
4.1
26.0
1.7
1.7
1.4
2.3
2.4
.8
5.8
2.0
1.4
3.0
3.5
26.C
1.9
1.8
1.4
2.1
2.2'
.9
6.2
1.9
1.5r
3.1
3.2
25.7
1.9
1.6
1.5
2.0
2.2
.8
6.0
2.1
1.5
3.1
3.1
25 OPEC countries 3
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30
African countries
24.9
2.2
9.3
3.3
7.9
2.3
21.6
2.1
8.9
3.0
5.5
2.0
22.8
2.2
9.3
3.1
6.1
2.2
22.7
2.2
9.0
3.1
6.2
2.3
21.6
2.1
8.9
3.0
5.5
2.0
20.7
2.2
8.7
3.3
4.7
1.8
20.6
2.1
8.8
3.0
5.0
1.7
20.0
2.2
8.7
2.8
4.6
1.7
19.6
2.2
8.6
2.5
4.5
1.7
20.4r
2.1
8.7
2.4r
5.5
1.6
19.2
2.1
8.7
2.2
4.5
1.7
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
31 Non-OPEC developing countries
111.8
105.1
110.0
107.8
105.1
103.8
101.7
99.9
99.5
100. V
100.5
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
8.7
26.3
7.0
2.9
25.7
2.2
3.9
8.9
25.6
7.0
2.7
24.2
1.8
3.4
8.6
26.6
6.9
2.7
25.3
2.1
3.7
8.9
25.5
6.6
2.6
24.4
1.9
3.5
8.9
25.6
7.0
2.7
24.2
1.8
3.4
8.9
25.7
7.0
2.3
24.1
1.7
3.3
9.2
25.4
7.1
2.2
23.9
1.6
3.3
9.3
25.3
7.2
2.0
23.9
1.5
3.3
9.5
25.3
7.1
2.1
23.9
1.4
3.1
9.5
25.6r
7.3
2.0
23.9
1.4
3.0
9.5
24.5
7.5
2.0
25.3
1.4
3.0
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.7
5.1
.9
1.8
10.6
2.7
6.0
1.8
1.1
.5
4.5
1.2
1.6
9.4
2.4
5.7
1.4
1.0
.3
5.5
.9
2.3
10.0
2.8
6.0
1.6
.9
1.1
5.1
1.1
1.5
10.4
2.7
6.0
1.7
.9
.5
4.5
1.2
1.6
9.4
2.4
5.7
1.4
1.0
.6
4.3
1.2
1.3
9.5
2.2
5.6
1.3
.9
.6
3.7
1.3
1.6
8.7
2.0
5.7
1.1
.8
.6
4.3
1.3
1.4
7.3
2.1
5.4
1.0
.7
.4
4.9
1.2
1.5
6.7
2.1
5.4
.9
.7
.9
5.5r
1.7
1.4
6.2
1.9
5.4
.9
.6
.6
6.6
1.7
1.3
5.7
1.7
5.4
.8
.8
48
49
>0
51
Africa
Egypt
Morocco
Zaire
Other Africa 4
1.2
.8
.1
2.1
1.0
.9
.1
1.9
1.0
.8
.1
2.0
1.0
.9
.1
2.0
1.0
.9
.1
1.9
.9
.9
.1
1.9
.9
.9
.1
1.7
.7
.9
.1
1.6
.7
.9
.1
1.6
.6
.9
.1
1.4
.6
.9
.1
1.3
52 Eastern Europe
53
U.S.S.R
54
Yugoslavia
55
Other
4.4
.1
2.3
2.0
4.2
.1
2.2
1.8
4.3
.3
2.2
1.8
4.6
.2
2.4
1.9
4.2
.1
2.2
1.8
4.0
.3
2.0
1.7
4.0
.3
2.0
1.7
3.4
.1
1.9
1.4
3.2
.1
1.7
1.4
3.1
.1
1.6
1.3
3.4
.3
1.7
1.4
56 Offshore banking centers
57
Bahamas
58
Bermuda
59
Cayman Islands and other British West Indies
60
Netherlands Antilles
61
Panama 5
62
Lebanon
63
Hong Kong
64
Singapore
65
Others 6
65.6
21.5
.9
11.8
3.4
6.7
.1
11.4
9.8
.0
65.4
21.4
.7
13.4
2.3
6.0
.1
11.5
9.9
.0
63.9
21.1
.9
12.1
3.2
5.4
.1
11.4
9.7
.0
58.8
16.6
.8
12.3
2.3
6.1
.0
11.4
9.4
.0
65.4
21.4
.7
13.4
2.3
6.0
.1
11.5
9.9
.0
60.1
21.5
.7
11.3
2.3
4.4
.1
11.5
8.4
.0
56.3
17.3
.5
13.0
2.3
4.2
.1
9.5
9.3
.0
61.0
20.0
.4
13.2
1.9
5.1
.1
10.5
9.7
.0
64.2
22.5
.7
14.5
1.8
4.1
.1
11.2
9.3
.0
65.4
23.8
.8
13.1
1.7
5.5
.1
11.5
8.8
.0
62.5
19.6
.6
14.7
1.3
5.3
.1
12.5
8.4
.0
66 Miscellaneous and unallocated 7
17.3
16.9
16.9
17.3
16.9
16.3
16.8r
17.2r
19.7''
17.7
18.4
1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or
another foreign branch of the same banking institution. The data in this table
combine foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the
claims of U.S. offices in table 3.18 (excluding those held by agencies and branches
of foreign banks and those constituting claims on own foreign branches).
2. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
3. Besides the Organization of Petroleum Exporting Countries shown individually, this group includes other members of OPEC (Algeria, Gabon, Iran, Iraq,
Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as well
as Bahrain and Oman (nor formally members of OPEC).
4. Excludes Liberia.
5. Includes Canal Zone beginning December 1979.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.
Nonbank-Reported
3.22
Data
A63
L I A B I L I T I E S T O U N A F F I L I A T E D F O R E I G N E R S Reported by Nonbanking B u s i n e s s Enterprises in the
United States 1
Millions of dollars, end of period
1987
1986
Type, and area or country
1984
1983
1985
Mar.
June
Sept.
Dec.
Mar.
1 Total
25,346
29,357
27,685
26,346
24,848
25,183
25,385
25,580
2 Payable in dollars
3 Payable in foreign currencies
22,233
3,113
26,389
2,968
24,296
3,389
22,589
3,757
21,162
3,686
21,240
3,943
21,541
3,844
20,028
5,551
By type
4 Financial liabilities
5
Payable in dollars
6
Payable in foreign currencies
10,572
8,700
1,872
14,509
12,553
1,955
13,460
11,257
2,203
13,017
10,750
2,267
11,728
9,637
2,091
12,285
9,908
2,376
12,134
9,694
2,440
12,686
9,983
2,703
7 Commercial liabilities
8
Trade payables
Advance receipts and other liabilities ..
9
14,774
7,765
7,009
14,849
7,005
7,843
14,225
6,685
7,540
13,329
5,618
7,711
13,120
5,472
7,648
12,899
5,723
7,175
13,250
6,289
6,961
12,894
6,072
6,822
13,533
1,241
13,836
1,013
13,039
1,186
11,839
1,490
11,525
1,595
11,331
1,567
11,847
1,404
10,046
2,848
5,742
302
843
502
621
486
2,839
6,728
471
995
489
590
569
3,297
7,560
329
857
434
745
620
4,254
7,456
440
851
388
630
636
4,167
7,046
390
686
280
635
505
4,252
7,678
424
501
319
708
636
4,660
7,891
245
737
372
701
714
4,830
7,929
205
702
368
690
817
4,886
10
11
12
13
14
15
16
17
18
19
Payable in dollars
Payable in foreign currencies
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
764
863
839
832
367
362
402
431
5,086
1,926
13
35
2,103
367
137
3,184
1,123
4
29
1,843
15
3
2,810
958
4
26
1,639
20
3
2,463
874
14
27
1,406
30
3
2,283
863
4
28
1,270
18
5
1,969
621
4
32
1,160
22
3
2,366
668
0
26
1,544
30
3
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,596
751
13
32
1,041
213
124
27
28
29
Asia
Japan
Middle East oil-exporting countries 2 .
1,424
991
170
1,777
1,209
155
1,815
1,198
82
1,874
1,267
78
1,735
1,264
43
1,881
1,446
3
1,792
1,377
8
1,869
1,459
7
30
Africa
19
0
14
0
12
0
12
0
12
0
4
2
1
1
3
1
27
41
50
32
104
76
79
88
3,245
62
437
427
268
241
732
4,001
48
438
622
245
257
1,095
4,074
62
453
607
364
379
976
3,925
66
382
546
545
261
957
3,817
58
358
561
586
284
864
4,367
75
370
637
613
361
1,104
4,420
99
338
693
493
384
1,279
4,454
85
281
602
374
483
1,320
31
32
33
34
35
36
37
38
39
40
Oil-exporting countries
All other 4
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
1,841
1,975
1,449
1,445
1,367
1,312
1,386
1,350
1,871
7
114
124
32
586
636
1,088
12
77
58
44
430
212
1,107
26
218
64
7
256
364
1,242
10
294
45
35
235
488
846
37
172
43
45
197
207
850
19
132
59
48
210
215
1,165
28
294
81
88
182
316
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,473
1
67
44
6
585
432
48
49
50
Asia
Japan
Middle East oil-exporting countries 2,3
6,741
1,247
4,178
5,285
1,256
2,372
6,046
1,799
2,829
5,384
2,039
2,171
5,075
2,100
1,787
4,807
2,136
1,492
5,011
2,046
1,666
4,931
2,443
1,175
51
52
Africa
Oil-exporting countries
553
167
588
233
587
238
486
148
567
215
585
176
619
197
520
170
53
All other 4
921
1,128
982
983
1,053
982
963
475
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.
A64
3.23
International Statistics • November 1987
CLAIMS ON UNAFFILIATED FOREIGNERS
United States 1
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1986
Type, and area or country
1983
1984
1987
1985
Mar.
June
Sept.
Dec.
Mar.
1 Total
34,911
29,901
28,760
31,404
33,869
33,879
32,839
34,492
2 Payable in dollars
3 Payable in foreign currencies
31,815
3,096
27,304
2,597
26,457
2,302
29,217
2,187
31,687
2,182
31,186
2,693
30,245
2,594
31,426
3,067
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
23,780
18,496
17,993
503
5,284
3,328
1,956
19,254
14,621
14,202
420
4,633
3,190
1,442
18,774
15,526
14,911
615
3,248
2,213
1,035
22,017
18,633
18,176
457
3,384
2,291
1,093
24,726
21,418
20,863
555
3,308
2,287
1,021
24,666
19,262
18,698
564
5,404
4,042
1,362
23,251
18,167
17,614
553
5,083
3,799
1,284
24,063
18,239
17,491
748
5,824
4,481
1,343
11 Commercial claims
12
Trade receivables
13
Advance payments and other claims
11,131
9,721
1,410
10,646
9,177
1,470
9,986
8,696
1,290
9,387
8,087
1,300
9,142
7,802
1,341
9,213
8,030
1,183
9,588
8,442
1,146
10,429
9,407
1,022
14
15
10,494
637
9,912
735
9,333
652
8,750
637
8,537
606
8,445
767
8,832
756
9,453
976
6,488
37
150
163
71
38
5,817
5,762
15
126
224
66
66
4,864
6,812
10
184
223
61
74
6,007
7,204
10
217
174
61
166
6,331
10,155
11
257
148
17
177
9,328
10,452
67
418
129
44
138
9,429
8,656
41
131
91
87
134
7,925
9,265
15
167
140
70
74
8,437
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
5,989
3,988
3,260
4,020
4,429
3,956
4,056
3,828
10,234
4,771
102
53
4,206
293
134
8,216
3,306
6
100
4,043
215
125
7,846
2,698
6
78
4,571
180
48
10,073
3,516
2
77
6,034
178
43
9,258
3,315
17
75
5,402
176
42
9,353
2,884
19
105
5,949
173
40
9,110
2,539
13
67
6,057
173
24
9,521
3,945
3
72
5,099
164
23
31
32
33
Asia
Japan
Middle East oil-exporting countries
764
297
4
961
353
13
731
475
4
619
350
2
776
499
2
740
390
2
1,317
986
11
1,220
957
11
34
35
Africa
Oil-exporting countries 3
147
55
210
85
103
29
87
27
89
25
84
18
85
28
84
19
36
All other 4
159
117
21
14
20
81
27
145
3,670
135
459
349
334
317
809
3,801
165
440
374
335
271
1,063
3,533
175
426
346
284
284
898
3,390
148
384
399
221
247
795
3,304
131
391
418
230
228
674
3,385
126
415
401
184
233
853
3,520
127
387
428
199
213
820
3,618
143
418
454
163
195
1016
37
38
39
40
41
42
43
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
829
1,021
1,023
1,061
965
950
909
1,821
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,695
8
190
493
7
884
272
2,052
8
115
214
7
583
206
1,753
13
93
206
6
510
157
1,592
27
82
217
7
388
172
1,611
24
148
193
29
323
181
1,687
29
132
207
23
316
192
1,861
29
158
229
55
388
219
1,704
11
127
211
22
415
157
52
53
54
Asia
Japan
Middle East oil-exporting countries
3,063
1,114
737
3,073
1,191
668
2,982
1,016
638
2,609
801
630
2,574
845
622
2,487
792
600
2,619
840
506
2620
936
466
55
56
Africa
Oil-exporting countries 3
588
139
470
134
437
130
491
167
450
170
469
168
464
134
425
141
57
All other 4
286
229
257
244
237
234
215
241
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
Securities Holdings and Transactions
3.24
A65
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1987
1987
Transactions, and area or country
1985
1986
Jan.July
Jan.
Feb.
Mar.
Apr.
May
June
July"
U.S. corporate securities
STOCKS
1
2
Foreign purchases
Foreign sales
3
Net purchases, or sales ( - )
4
S
6
7
8
9
10
11
1?
13
14
15
16
17
Foreign countries
81,995
77,054
148,090
129,382
144,019
123,846
17,628
15,964
20,704
17,599
23,066
18,003
20,704
17,392
19,603
15,952
18,682
17,054
23,632
21,883
4,941
18,708
20,173
1,664
3,105
5,063
3,312
3,651
1,628
1,749
3,687
1,673
1,735
704
66
-96
153
-80
621
255
387
-913
1,290
-14
28
4,857
Germany
Netherlands
Switzerland
United Kingdom
Latin America and Caribbean
Middle East 1
Other Asia
Other countries
Nonmonetary international and
regional organizations
BONDS
18,916
20,319
1,744
3,204
5,026
3,250
2,057
-438
730
-123
-75
1,665
356
1,718
238
296
24
168
9,559
459
341
936
1,560
4,826
807
3,029
976
3,876
297
373
8,565
1,870
-137
842
749
4,575
643
2,058
-1,278
9,656
76
599
1,061
140
62
53
101
647
100
308
136
91
-1
49
1,786
446
16
91
100
996
-118
331
-175
1,153
15
212
1,841
656
19
69
177
783
343
372
-230
2,638
1
61
1,027
332
-101
124
306
181
252
36
21
1,790
59
65
1,478
123
118
120
351
675
48
334
-90
1,686
45
185
669
107
-155
232
-206
671
-238
290
-26
1,009
-30
-1
84
-208
-147
-80
-100
37
62
-36
-45
14
2
18
19
Foreign purchases
86,587
42,455
122,953
72,499
68,054
49,112
9,308
7,180
8,021
5,457
12,117
8,281
9,873
6,559
8,963
6,823
10,364
8,305
9,407
6,507
20
Net purchases, or sales (—)
44,132
50,454
18,942
2,127
2,565
3,836
3,314
2,140
2,060
2,900
21
Foreign countries
44,227
49,607
18,655
2,216
2,179
3,994
3,138
2,270
1,968
2,891
40,047
210
2,001
222
3,987
32,762
190
498
-2,648
6,091
11
38
39,126
389
-251
387
4,529
33,706
548
1,468
-2,961
11,270
16
139
15,472
198
176
89
1,286
13,591
770
944
-381
1,865
22
-37
1,372
6
-213
-7
66
1,389
-103
103
-57
917
0
-16
1,402
17
145
-29
78
1,178
364
98
-139
469
1
-16
3,600
81
198
69
558
2,931
190
65
-12
169
3
-22
2,864
-22
-121
47
50
2,839
161
123
62
-73
1
0
1,682
7
-29
38
182
1,544
23
254
59
252
7
-6
2,204
43
80
37
105
1,795
49
-4
-128
-169
8
8
2,348
65
116
-65
247
1,914
87
305
-166
300
1
15
-95
847
287
-88
386
-157
176
-130
92
9
?? Europe
73
24
75
26
77
28
29
30
31
3?
33
34
Germany
Netherlands
Switzerland
United Kingdom
Latin America and Caribbean
Middle East 1
Africa
Other countries
Nonmonetary international and
regional organizations
Foreign securities
35
36
37
Stocks, net purchases, or sales ( - )
Foreign purchases
Foreign sales
-3,941
20,861
24,803
-1,912
48,787
50,699
-2,183
51,594
53,777
-204
4,906
5,110
-561
7,175
7,736
-708
7,015
7,722
-1,160
7,120
8,280
636'
8,016'
7,380'
-257
8,778
9,035
70
8,584
8,514
38
39
40
Bonds, net purchases, or sales ( - )
Foreign purchases
Foreign sales
-3,999
81,216
85,214
-3,361
166,781
170,142
-276
125,078
125,354
319
11,427
11,108
-70
15,822
15,891
-545
16,650
17,195
-579
19,012
19,591
-1,112'
20,049'
21,161'
2,271
25,788
23,517
-558
16,332
16,890
41
Net purchases, or sales ( - ) , of stocks and bonds
-7,940
-5,273
-2,459
114
-631
-1,253
-1,739
-476'
2,014
-488
42
Foreign countries
-9,003
-6,357
-2,870
-27
-711
-1,520
1,874
-494'
1,970
-215
43
44
45
46
47
48
Europe
-9,887
-1,686
1,797
659
75
38
-17,893
-875
3,479
10,858
52
-1,977
-7,319
-2,666
587
7,337
42
-851
-226
-3%
389
168
4
34
-1,219
-566
104
925
0
45
-682
-202
-416
306
-1
-524
-2,682
-3
259
636
8
-91
-1,990'
-418'
204
1,697'
20
-8'
-31
-489
107
2,502
6
-124
-489
-592
-60
1,104
5
-182
1,063
1,084
411
142
80
267
135
44
-274
49
Latin America and Caribbean
Other countries
Nonmonetary international and
regional organizations
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
2. Includes state and local government securities, and securities of U.S.
government agencies and corporations. Also includes issues of new debt securi-
18
ties sold abroad by U.S. corporations organized to finance direct investments
abroad.
A66
3.25
International Statistics • November 1987
MARKETABLE U.S. TREASURY BONDS AND NOTES
Foreign Transactions
Millions of dollars
1987
Country or area
1985
1987
1986
JanJuly
Jan.
Feb.
Mar.
Apr.
May
June
July''
Transactions, net purchases or sales ( - ) during period 1
1 Estimated total2
29,208
20,061
17,474
-436
961
7,028
-2,990
-248
12,281
878
2 Foreign countries 2
28,768
21,164
21,225
580
1,846
4,145
-1,405
3,731
8,648
3,680
3 Europe 2
4
Belgium-Luxembourg
5 Germany
Netherlands
6
7
Sweden
Switzerland 2
8
United Kingdom
9
Other Western Europe
10
Eastern Europe
11
12 Canada
4,303
476
1,917
269
976
773
-1,810
1,701
0
-188
16,866
349
7,531
1,283
132
310
4,648
2,613
0
881
19,189
317
9,413
109
304
4,141
1,660
3,276
-31
2,944
1,376
59
581
-366
-229
-135
1,227
236
3
846
1,751
211
1,118
41
440
473
-15
-518
0
-416
5,832
-35
2,141
-212
334
1,641
328
1,635
0
709
375
-35
1,106
-22
32
652
-1,089
-230
-40
703
1,695
4
1,417
352
-166
413
-524
198
1
37
3,640
58
1,534
111
-183
585
617
913
5
413
4,519
54
1,516
204
76
512
1,115
1,042
0
654
13 Latin America and Caribbean
14
Venezuela
15
Other Latin America and Caribbean
16
Netherlands Antilles
17
18 Japan
19
20 Allother
4,315
248
2,336
1,731
19,919
17,909
112
308
875
-95
1,128
-159
1,341
-77
-54
1,255
-1,660
92
-1,203
-549
46
-267
-17
724
-1,006
-33
-445
-528
-922
-76
6
280
-290
18
373
-682
1,231
1,767
-34
-396
-62
102
-156
-8
-2,378
-2,457
12
32
-30
14
-176
133
-2,880
-2,561
-15
442
-381
11
-302
-90
2,136
-541
11
233
782
-17
-512
1,311
3,531
4,199
-18
300
-673
-4
15
-684
-671
-597
20
-168
442
-436
18
-1,105
-1,430
157
-3,752
-2,944
13
-1,016
-1,070
0
-885
-886
0
2,883
2,833
11
-1,585
-1,347
0
-3,980
-3,114
0
3,633
3,515
3
-2,802
-2,875
0
28,768
8,135
20,631
21,164
14,380
6,787
21,225
21,076
149
580
1,498
-918
1,846
834
1,012
4,145
5,837
-1,691
-1,405
2,489r
-3,894 r
3,731
4,447
-715
8,648
3,719
4,929
3,680
2,253
1,426
-1,547
7
-1,473
5
-1,686
20
-721
1
-962
1
226
17
-120
0
636
0
-857
1
112
0
21 Nonmonetary international and regional organizations
International
22
Latin American regional
23
Memo
24 Foreign countries 2
25
Official institutions
Other foreign
26
2.7
28
Oil-exporting countries
Middle East 3
Africa 4
1. Estimated official and private transactions in marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based on
monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. Includes U.S. Treasury notes publicly issued to private foreign residents
denominated in foreign currencies.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria,
Interest and Exchange Rates
3.26
A67
D I S C O U N T RATES OF FOREIGN CENTRAL B A N K S
Percent per annum
Rate on Aug. 31, 1987
Rate on Aug. 31, 1987
Country
Country
Month
effective
3.5
7.25
49.0
9.24
7.0
Austria..
Belgium .
Brazil . . .
Canada..
Denmark
Jan. 1987
July 1987
Mar. 1981
Aug. 1987
Oct. 1983
Month
effective
France
Germany, Fed. Rep. of,
Italy
Japan
Netherlands
1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts
3.27
Rate on Aug. 31, 1987
Country
7.5
3.0
12.0
2.5
4.5
July 1987
Jan. 1987
Aug. 1987
Feb. 1987
Mar. 1986
Norway
Switzerland
United Kingdom
Venezuela
Percent
Month
effective
8.0
3.5
June 1983
Jan. 1987
8.0
Oct. 1985
or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to
such discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.
FOREIGN SHORT-TERM INTEREST RATES
Percent per annum, averages of daily figures
1987
Country, or type
1
2
3
4
5
6
7
8
9
10
1984
1985
1986
Feb.
Mar.
Apr.
May
June
July
Aug.
Eurodollars
United Kingdom
Canada
Germany
Switzerland
10.75
9.91
11.29
5.96
4.35
8.27
12.16
9.64
5.40
4.92
6.70
10.87
9.18
4.58
4.19
6.32
10.79
7.44
3.94
3.58
6.37
9.90
7.14
3.97
3.93
6.73
9.72
7.62
3.85
3.65
7.25
8.79
8.22
3.73
3.63
7.11
8.85
8.40
3.67
3.77
6.87
9.17
8.61
3.83
3.60
6.91
9.95
9.11
3.93
3.55
Netherlands
France
Italy
Belgium
Japan
6.08
11.66
17.08
11.41
6.32
6.29
9.91
14.86
9.60
6.47
5.56
7.68
12.60
8.04
4.96
5.31
8.36
11.13
7.75
3.98
5.38
7.85
10.65
7.49
4.00
5.31
7.87
10.03
7.21
3.92
5.11
8.09
10.15
7.13
3.77
5.15
8.18
10.67
6.78
3.71
5.21
7.83
10.92
6.54
3.74
5.27
7.88
11.96
6.55
3.71
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.
A68
3.28
International Statistics • November 1987
FOREIGN E X C H A N G E RATES
Currency units per dollar
1987
1984
Country/currency
1
2
3
4
5
6
Australia/dollar
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
1985
1986
Mar.
Apr.
May
June
July
Aug.
87.937
20.005
57.749
1.2953
2.3308
10.354
70.026
20.676
59.336
1.3658
2.9434
10.598
67.093
15.260
44.662
1.3896
3.4615
8.0954
68.17
12.905
38.029
1.3194
3.7314
6.9166
71.19
12.739
35.562
1.3183
3.7314
6.8388
71.42
12.574
37.091
1.3411
3.7314
6.7333
71.79
12.793
37.712
1.338
3.7314
6.8555
70.79
12.996
38.329
1.3262
3.7314
7.0179
70.72
13.041
38.528
1.3256
3.7314
7.1279
7
8
9
10
11
12
13
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Ireland/pound 1
6.0007
8.7355
2.8454
112.73
7.8188
11.348
108.64
6.1971
8.9799
2.9419
138.40
7.7911
12.332
106.62
5.0721
6.9256
2.1704
139.93
7.8037
12.597
134.14
4.5102
6.1091
1.8355
134.68
7.8017
12.924
145.54
4.4227
6.0332
1.8125
133.502
7.8023
12.8224
147.49
4.3604
5.9748
1.7881
133.35
7.8049
12.666
149.59
4.4281
6.0739
1.8189
136.06
7.8080
12.837
147.25
4.4882
6.1530
1.8482
139.313
7.8090
13.01
144.99
4.5017
6.1934
1.8553
140.63
7.8091
13.085
144.18
14
15
16
17
18
19
20
Italy/lira
Japan/yen
Malaysia/ringgit
Netherlands/guilder
New Zealand/dollar 1 . . .
Norway/krone
Portugal/escudo
1756.10
237.45
2.3448
3.2083
57.837
8.1596
147.70
1908.90
238.47
2.4806
3.3184
49.752
8.5933
172.07
1491.16
168.35
2.5830
2.4484
52.456
7.3984
149.80
1305.90
151.43
2.5230
2.0731
56.333
6.9335
141.48
1292.96
143.00
2.4861
2.0447
57.751
6.7781
140.339
1290.80
140.48
2.4759
2.0154
57.639
6.6632
139.18
1316.50
144.55
2.5078
2.0490
58.686
6.7147
142.12
1337.96
150.29
2.5414
2.0814
59.644
6.7632
144.51
1344.18
147.33
2.5361
2.0903
58.923
6.7911
145.57
21
22
23
24
25
26
27
28
29
30
Singapore/dollar
South Africa/rand 1
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/point 1 .
2.1325
69.534
807.91
160.78
25.428
8.2706
2.3500
39.633
23.582
133.66
2.2008
45.57
861.89
169.98
27.187
8.6031
2.4551
39.889
27.193
129.74
2.1782
43.952
884.61
140.04
27.933
7.1272
1.7979
37.837
26.314
146.77
2.1418
48.21
856.11
128.86
28.823
6.4202
1.5391
34.681
25.881
159.23
2.1350
49.55
845.00
126.975
28.902
6.3210
1.4968
33.863
25.695
162.99
2.1202
49.87
832.53
125.28
28.988
6.2606
1.4705
32.354
25.629
166.66
2.1176
49.41
818.39
126.33
29.171
6.3482
1.5085
31.226
25.779
162.88
2.1183
48.52
811.81
126.97
29.405
6.4466
1.5365
31.114
26.041
160.90
48.16
811.87
125.57
29.643
6.4898
1.5364
30.290
25.926
159.96
96.05
97.78
99.36
99.43
MEMO
31 United States/dollar 2 . . .
112.22
1. Value in U.S. cents.
2. Index of weighted-average exchange value of U.S. dollar against the
currencies of 10 industrial countries. The weight for each of the 10 countries is the
1972-76 average world trade of that country divided by the average world trade of
all 10 countries combined. Series revised as of August 1978 (see FEDERAL
RESERVE BULLETIN, vol. 64, A u g u s t 1978, p . 700).
2.1082
3. Currency reform.
NOTE. Averages of certified noon buying rates in New York for cable transfers.
Data in this table also appear in the Board's G.5 (405) release. For address, see
inside front cover.
A69
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE TO TABULAR
Symbols and
c
e
p
r
*
PRESENTATION
Abbreviations
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when
about half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000
when the smallest unit given is millions)
General
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
....
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed
issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
STATISTICAL
obligations of the Treasury. "State and local government"
also includes municipalities, special districts, and other political subdivisions.
In some of the tables details do not add to totals because of
rounding.
RELEASES
List Published Semiannually,
with Latest Bulletin
Reference
Anticipated schedule of release dates for periodic releases
Issue
Page
June 1987
A89
SPECIAL TABLES
Published Irregularly, with Latest Bulletin Reference
Assets and liabilities of commercial banks, June 30, 1986
Assets and liabilities of commercial banks, September 30, 1986
Assets and liabilities of commercial banks, December 31, 1986
Assets and liabilities of commercial banks, March 31, 1987
Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1986
Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1986
Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1987
Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1987
Terms of lending at commercial banks, August 1986
Terms of lending at commercial banks, November 1986
Terms of lending at commercial banks, February 1987
Terms of lending at commercial banks, May 1987
Pro forma balance sheet and income statements for priced service operations, June 30, 1987
Special tables begin on next page.
June
July
July
October
March
May
August
November
December
February
May
September
November
1987
1987
1987
1987
1987
1987
1987
1987
1986
1987
1987
1987
1987
A76
A70
A76
A70
A70
A76
A70
A70
A70
A70
A70
A70
A74
A70
4.30
Special Tables • November 1987
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 19871
Millions of dollars
All states 2
Item
1 Total assets4
Total
including
IBFs
New York
IBFs
only 3
Total
including
IBFs
California
IBFs
only 3
Total
including
IBFs
Illinois
Total
including
IBFs
IBFs
only 3
IBFs
only 3
427,353
214,061
315,832
170,859
64,980
27,404
27,252
10,152
2 Claims on nonrelated parties
3 Cash and balances due from depository institutions
Cash items in process of collection and unposted
4
debits
5
Currency and coin (U.S. and foreign)
Balances with depository institutions in United States
6
U.S. branches and agencies of other foreign banks
7
(including their IBFs)
8
Other depository institutions in United States
(including their IBFs)
9
Balances with banks in foreign countries and with
foreign central banks
10
Foreign branches of U.S. banks
11
Other banks in foreign countries and foreign central
banks
12 Balances with Federal Reserve Banks
391,802
105,304
183,467
88,174
290,690
88,219
145,499
73,647
58,123
9,589
25,174
8,832
27,252
6,146
9,912
4,946
442
37
55,116
0
n.a.
41,781
415
30
45,034
0
n.a.
33,870
5
2
5,769
0
n.a.
5,095
9
2
3,659
0
n.a.
2,573
47,801
38,956
39,089
31,380
5,185
4,908
3,095
2,442
7,315
2,825
5,944
2,490
584
188
564
131
47,128
2,705
46,393
2,601
40,372
2,524
39,777
2,446
3,753
87
3,737
86
2,398
61
2,373
54
44,423
2,581
43,793
n.a.
37,848
2,368
37,331
n.a.
3,666
60
3,651
n.a.
2,336
79
2,319
n.a.
13 Total securities and loans
236,795
91,036
163,830
68,752
39,676
15,661
19,773
4,653
32,379
6,527
8,915
n.a.
26,138
6,154
6,716
n.a.
4,136
167
1,873
n.a.
1,042
110
217
n.a.
14 Total securities, book value
15
U.S. Treasury
16 Obligations of U.S. government agencies and
corporations
17 Other bonds, notes, debentures and corporate stock
(including state and local securities)
n.a.
2,680
n.a.
8,915
17,303
6,716
3,928
1,873
932
217
11,522
8,442
1,582
1,498
1,323
756
144
423
10,345
7,685
1,388
1,273
949
508
144
297
436
263
77
96
114
109
0
5
396
237
41
119
132
22
0
110
204,618
202
204,415
82,203
82
82,121
137,826
134
137,692
62,094
58
62,036
35,598
58
35,540
13,811
24
13,787
18,737
6
18,731
4,436
0
4,436
9,786
68,852
37,331
33,500
3,831
89
48,521
19,317
17,692
1,625
3,815
50,818
26,889
23,410
3,479
47
33,605
11,754
10,223
1,531
2,529
11,979
7,189
6,963
226
36
10,057
5,350
5,267
83
1,717
4,624
2,944
2,884
60
0
3,776
2,130
2,119
11
97
31,423
1,148
30,275
5,250
25
29,180
1,113
28,067
762
43
23,886
915
22,971
3,149
11
21,841
880
20,961
676
16
4,774
220
4,554
853
3
4,705
220
4,485
47
25
1,655
10
1,645
1,068
0
1,646
10
1,636
28
35 Commercial and industrial loans
36
U.S. addressees (domicile)
37
Non-U.S. addressees (domicile)
38 Acceptances of other banks
39
U.S. banks
40
Foreign banks
41 Loans to foreign governments and official institutions
(including foreign central banks)
42 Loans for purchasing or carrying securities
(secured and unsecured)
43 All other loans
97,798
75,763
22,035
675
273
401
17,756
241
17,515
12
0
12
60,605
42,707
17,898
542
166
376
14,836
183
14,653
6
0
6
18,132
15,500
2,632
96
89
7
2,267
58
2,209
0
0
0
10,850
10,409
441
17
1
16
354
0
354
6
0
6
16,627
14,727
14,247
12,669
1,383
1,349
306
270
3,344
2,286
34
301
2,775
1,875
27
227
531
95
0
55
2
153
2
0
44 All other assets
45
Customers' liability on acceptances outstanding
46
U.S. addressees (domicile)
47
Non-U.S. addressees (domicile)
48
Other assets including other claims on nonrelated
38,181
28,052
18,154
9,898
2,934
n.a.
n.a.
n.a.
28,296
20,352
11,581
8,770
2,151
n.a.
n.a.
n.a.
8,421
7,010
6,033
977
567
n.a.
n.a.
n.a.
937
447
438
9
180
n.a.
n.a.
n.a.
10,128
35,551
2,934
30,594
7,945
25,142
2,151
25,360
1,411
6,857
567
2,230
490
0
180
240
35,551
n.a.
25,142
n.a.
6,857
n.a.
n.a.
30,594
n.a.
25,360
n.a.
2,230
n.a.
52 Total liabilities4
427,353
214,061
315,832
170,859
64,980
27,404
27,252
10,152
53 Liabilities to nonrelated parties
373,703
183,983
288,901
148,141
58,058
23,702
15,326
6,828
18 Federal funds sold and securities purchased under
agreements to resell
19 U.S branches and agencies of other foreign banks . . . .
20
Commercial banks in United States
21
Other
22 Total loans, gross
23
Less: Unearned income on loans
24
Equals: Loans, net
Total loans, gross, by category
25 Real estate loans
26 Loans to depository institutions
27
Commercial banks in United States (including IBFs) .
28
U.S. branches and agencies of other foreign banks .
29
Other commercial banks in United States
30 Other depository institutions in United States
(including IBFs)
31
Banks in foreign countries
32
Foreign branches of U.S. banks
33
Other banks in foreign countries
34 Other financial institutions
49 Net due from related depository institutions 5
50
Net due from head office and other related depository
institutions 5
51
Net due from establishing entity, head offices,
and other related depository institutions 5
42
n.a.
0
n.a.
2,729
23,123
0
n.a.
240
U.S. Branches and Agencies
4.30
A71
Continued
Millions of dollars
All states 2
Item
54 Total deposits and credit balances
55
Individuals, partnerships, and corporations
56
U.S. addressees (domicile)
57
Non-U.S. addressees (domicile)
58
Commercial banks in United States (including IBFs) .
U.S. branches and agencies of other foreign banks .
59
60
Other commercial banks in United States
Banks in foreign countries
61
Foreign branches of U.S. banks
62
63
Other banks in foreign countries
64
Foreign governments and official institutions
(including foreign central banks)
65
All other deposits and credit balances
66
Certified and official checks
67 Transaction accounts and credit balances
(excluding IBFs)
Individuals, partnerships, and corporations
68
U.S. addressees (domicile)
69
Non-U.S. addressees (domicile)
70
Commercial banks in United States (including IBFs) .
71
U.S. branches and agencies of other foreign banks .
72
73
Other commercial banks in United States
74
Banks in foreign countries
75
Foreign branches of U.S. banks
76
Other banks in foreign countries
77
Foreign governments and official institutions
(including foreign central banks)
78
All other deposits and credit balances
79
Certified and official checks
80 Demand deposits (included in transaction accounts
and credit balances)
Individuals, partnerships, and corporations
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Commercial banks in United States (including IBFs) .
U.S. branches and agencies of other foreign banks .
Other commercial banks in United States
Banks in foreign countries
Foreign branches of U.S. banks
Other banks in foreign countries
Foreign governments and official institutions
(including foreign central banks)
91
All other deposits and credit balances
92
Certified and official checks
81
82
83
84
85
86
87
88
89
90
93 Non-transaction accounts (including MMDAs,
excluding IBFs)
94
Individuals, partnerships, and corporations
95
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
%
97
Commercial banks in United States (including IBFs) .
98
U.S. branches and agencies of other foreign banks.
99
Other commercial banks in United States
100 Banks in foreign countries
Foreign branches of U.S. banks
101
102
Other banks in foreign countries
103 Foreign governments and official institutions
(including foreign central banks)
104
All other deposits and credit balances
105 IBF deposit liabilities
106 Individuals, partnerships, and corporations
107
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
108
109 Commercial banks in United States (including IBFs) .
110
U.S. branches and agencies of other foreign banks .
Other commercial banks in United States
111
112 Banks in foreign countries
113
Foreign branches of U.S. banks
114
Other banks in foreign countries
115
Foreign governments and official institutions
(including foreign central banks)
116 All other deposits and credit balances
For notes see end of table.
Total
excluding
IBFs
New York
IBFs
only5
Total
excluding
IBFs
Illinois
California
IBFs
only 3
Total
excluding
IBFs
IBFs
only 3
Total
excluding
IBFs
IBFs
only 3
56,550
43,214
33,847
9,367
8,560
4,481
4,079
1,773
249
1,523
147,811
13,748
232
13,516
52,030
44,910
7,119
75,415
8,313
67,101
48,017
35,553
29,097
6,456
7,891
3,945
3,946
1,700
249
1,452
131,460
10,322
229
10,093
45,114
38,550
6,564
69,579
6,999
62,580
1,801
1,695
508
1,186
49
6
44
14
0
14
8,862
340
0
340
4,630
4,244
386
3,667
916
2,751
2,789
2,176
1,994
182
594
524
71
2
0
2
2,872
95
0
95
1, 486
1,391
95
1,259
163
1,096
1,034
1,525
444
6,057
562
985
1,504
383
5, 884
561
16
5
22
44
0
2
2
13
32
0
5,654
3,623
2,318
1,305
379
144
235
789
13
776
n.a.
4,725
2,867
1,837
1,030
366
144
222
741
12
729
n.a.
242
208
158
51
3
0
3
4
0
4
n.a.
219
201
197
4
0
0
0
1
0
1
336
84
444
301
67
383
1
3
22
2
1
13
4,450
2,984
1,870
1,114
139
65
74
620
1
619
3,780
2,473
1,575
898
130
64
66
573
0
573
%
66
33
33
3
0
3
3
0
3
205
187
183
4
0
0
0
1
0
1
n.a.
n.a.
n a.
210
53
444
175
45
383
1
0
22
2
1
13
50,896
39,592
31,530
8,062
8,181
4,337
3,844
984
237
747
43,292
32,686
27,260
5,426
7,525
3,801
3,724
960
237
723
1,559
1,486
350
1,136
46
6
40
10
0
10
2,571
1,975
1,797
178
594
524
70
1
0
1
n.a.
698
1,441
n.a.
n.a.
14
3
684
1,437
147,811
13,748
232
13,516
52,030
44,910
7,119
75,415
8 313
67,101
6,057
562
n.a.
n. a.
131,460
10,322
229
10,093
45,114
38,550
6,564
69,579
6,999
62,580
5,884
561
n a.
n. a.
n.a.
n a.
0
1
8,682
340
0
340
4,630
4,244
386
3,667
916
2,751
44
0
n.a.
2,872
95
0
95
1,486
1,391
95
1,259
163
1,096
32
0
A70
4.30
Special Tables • November 1987
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 1987'—Continued
Millions of dollars
All states 2
Item
117 Federal funds purchased and securities sold under
agreements to repurchase
118 U.S. branches and agencies of other foreign banks . . .
119 Other commercial banks in United States
170 Other
121 Other borrowed money
122 Owed to nonrelated commercial banks in United States
(including IBFs)
123 Owed to U.S. offices of nonrelated U.S. banks
124 Owed to U.S. branches and agencies of
nonrelated foreign banks
125 Owed to nonrelated banks in foreign countries
126 Owed to foreign branches of nonrelated U.S. banks . .
127 Owed to foreign offices of nonrelated foreign b a n k s . . .
128 Owed to others
129 All other liabilities
130 Branch or agency liability on acceptances executed
and outstanding
131
Other liabilities to nonrelated parties
132 Net due to related depository institutions 5
133 Net due to head office and other related
depository institutions 5
134 Net due to establishing entity, head office, and other
related depository institutions 5
Total
including
IBFs
New York
Total
including
IBFs
IBFs
only 3
California
Total
including
IBFs
IBFs
only 3
Illinois
Total
including
IBFs
IBFs
only 3
IBFs
only 3
44,835
11,624
16,477
16,734
85,252
2,018
1,163
148
706
31,764
32,698
7,502
11,088
14,108
47,200
1,136
516
78
542
13,755
9,317
3,276
3,782
2,259
29,753
832
616
/0
146
13,788
2,097
662
1,150
285
6,773
12
0
0
12
3,791
57,723
25,992
12,447
2,455
31,532
16,512
3,697
927
21,996
7,572
7,772
1,267
2,946
1,130
680
65
31,731
17,861
2,372
15,448
9,668
9,992
17,346
2,325
15,021
1,971
15,020
8,575
630
7,944
7,094
2,770
8,153
593
7,559
1,906
14,424
5,976
1,432
4,543
1,782
6,505
5,975
1,432
4,543
41
1,816
3,124
263
2,861
703
615
3,086
257
2,829
25
39,256
2,390
29,526
1,791
8,505
400
795
153
31,252
8,004
n. a.
2,390
22,895
6,632
n a.
1,791
7,638
868
n.a.
400
460
335
n a.
153
53,650
30,078
26,931
22,718
6,922
3,703
11,926
3,324
53,650
n.a.
26,931
n.a.
6,922
n.a.
11,926
n.a.
n.a.
30,078
n.a.
22,718
n.a.
3,703
n.a.
3,324
MEMO
135 Non-interest bearing balances with commercial banks
in United States
136 Holding of commercial paper included in total loans . . . .
137 Holding of own acceptances included in commercial
and industrial loans
138 Commercial and industrial loans with remaining maturity
of one year or less
139 Predetermined interest rates
140 Floating interest rates
141 Commercial and industrial loans with remaining maturity
of more than one year
142 Predetermined interest rates
143 Floating interest rates
4
2,215
484
4
1,900
334
180
51
0
66
90
2,615
1,583
832
83
55,256
34,544
20,713
31,904
18,996
12,908
11,695
8,697
2,999
6,875
4,239
2,636
42,542
14,257
28,285
n.a.
28,701
8,662
20,038
n a.
6,436
3,043
3,393
n.a.
3,975
1,815
2,160
0
n.a.
U.S. Branches and Agencies
4.30
A73
Continued
Millions of dollars
All states 2
Item
144 Components of total nontransaction accounts,
included in total deposits and credit balances of
nontransactional accounts, including IBFs
145 Time CDs in denominations of $100,000 or more
146 Other time deposits in denominations of $100,000
or more
147 Time CDs in denominations of $100,000 or more
with remaining maturity of more than
12 months
Total
excluding
IBFs
64,038
38,737
8,567
16,734
All states 2
Total
including
IBFs
148 Market value of securities held
149 Immediately available funds with a maturity greater than
one day included in other borrowed money
Total
excluding
IBFs
IBFs
only 3
t
1
n.a.
t
I
56,748
33,031
n.a.
8,119
15,598
New York
Total
including
IBFs
IBFs
only 3
IBFs
only 3
Total
excluding
IBFs
1,398
1,044
212
IBFs
only 3
t
1
Total
excluding
IBFs
2,818
2,140
197
n.a.
142
California
IBFs
only 3
Illinois
Total
including
IBFs
IBFs
only 3
480
Total
including
IBFs
10,533
27,339
8,468
3,826
1,740
1,042
54,427
n.a.
29,920
n.a.
21,074
n.a.
2,506
1. Data are aggregates of categories reported on the quarterly form FFIEC 002,
"Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign
Banks." Details may not add to totals because of rounding. This form was first
used for reporting data as of June 30, 1980, and was revised as of December 31,
1985. From November 1972 through May 1980, U.S. branches and agencies of
foreign banks had filed a monthly FR 886a report. Aggregate data from that report
were available through the Federal Reserve statistical release G. 11, last issued on
July 10, 1980. Data in this table and in the G . l l tables are not strictly comparable
because of differences in reporting panels and in definitions of balance sheet
items.
2. Includes the District of Columbia.
3. Effective December 1981, the Federal Reserve Board amended Regulations
D and Q to permit banking offices located in the United States to operate
International Banking Facilities (IBFs). As of December 31, 1985, data for IBFs
are reported in a separate column. These data are either included in or excluded
from the total columns as indicated in the headings. The notation " n . a . " indicates
224
121
IBFs
only 3
t
J
n.a.
Illinois
33,261
493
California
New York
IBFs
only 3
217
n.a.
49
that no IBF data are reported for that item, either because the item is not an
eligible IBF asset or liability or because that level of detail is not reported for
IBFs. From December 1981 through September 1985, IBF data were included in
all applicable items reported.
4. Total assets and total liabilities include net balances, if any, due from or due
to related banking institutions in the United States and in foreign countries (see
footnote 5). On the former monthly branch and agency report, available through
the G.l 1 statistical release, gross balances were included in total assets and total
liabilities. Therefore, total asset and total liability figures in this table are not
comparable to those in the G . l l tables.
5. "Related banking institutions" includes the foreign head office and other
U.S. and foreign branches and agencies of the bank, the bank's parent holding
company, and majority-owned banking subsidiaries of the bank and of its parent
holding company (including subsidiaries owned both directly and indirectly).
6. In some cases two or more offices of a foreign bank within the same
metropolitan area file a consolidated report.
A70
Special Tables • November 1987
4.31 Pro forma balance sheet for priced services of the Federal Reserve S y s t e m
Millions of dollars
Short-term assets1
Imputed reserve requirement on clearing balances
Investment in marketable securities
Receivables
Materials and supplies
Prepaid expenses
Net items in process of collection
232.0
1,701.0
50.9
4.9
7.7
928.1
214.5
112.8
3.4
9.3
Total long-term assets
Total assets
Short-term liabilities
Clearing balances and balances arising from early credit
of uncollected items
Short-term debt
Total short-term liabilities
Long-term liabilities
Obligations under capital leases
Long-term debt
340.0
307.4
3,264.6
2,430.0
2,060.6
62.0
2,924.7
1.4
104.7
Total liabilities
Equity
3
Details may not add to totals because of rounding.
1. Short-term Assets. The accounts "imputed reserve requirement
on clearing balances" and "investment in marketable securities"
reflect the Federal Reserve's treatment of clearing balances that
depository institutions maintain on deposit with the Reserve Banks.
For balance sheet and income statement presentation, clearing balances are reported in a manner comparable to the way correspondent
banks report compensating balances that respondent institutions hold
with them: These respondent balances are subject to a reserve
requirement established by the Federal Reserve, which must be
satisfied either with vault cash or with nonearning balances maintained at a Reserve Bank. Following this model, clearing balances
maintained with Reserve Banks for priced-service purposes are subject to imputed reserve requirements. Therefore, a portion of the
clearing balances held with the Federal Reserve is classified on the
asset side of the balance sheet as required reserves and is reflected in
a manner similar to vault cash and due-from-bank balances normally
shown on a correspondent bank's balance sheet. The remainder of
clearing balances is assumed to be available for investment. For these
purposes, the Federal Reserve assumes that all such balances are
invested in three-month Treasury bills.
The amount of "net items in the process of collection" represents
float as of the balance sheet date and is the difference between the
value of items in the process of collection (including checks, coupons,
securities, wire transfers, and automated clearinghouse (ACH) transactions) and the value of deferred-availability items. The cost base for
providing services that must be recovered under the Monetary Control Act includes the cost of float incurred by the Federal Reserve
during the period valued at the federal funds rate. Conventional
accounting procedures would call for inclusion on a balance sheet of
2,122.6
191.0
114.2
2.2
2,861.1
63.5
Total long-term liabilities
Total liabilities and equity
221.5
1,624.5
50.9
5.0
6.0
214.6
2,924.7
Total short-term assets
Long-term assets2
Premises
Furniture and equipment
Leases and leasehold improvements
Prepaid pension costs
June 30, 1986
June 30, 1987
Item
2,122.6
.3
97.6
106.1
97.9
3,030.8
2,220.5
233.9
209.4
3,264.6
2,430.0
the gross amount of items in the process of collection and of
deferred-availability items. However, because the gross amounts have
no implications for income, costs, or the private sector adjustment
factor (PSAF), and because the inclusion of these amounts could lead
to distortions and misinterpretations of the assets employed in the
provision of priced services that must be financed, only the net
amount is shown. That amount represents the assets that involve a
financing cost.
2. Long-Term Assets. Long-term assets reflected on the balance
sheet have been allocated to priced services using a direct determination basis. That method uses the Federal Reserve's Planning and
Control System to ascertain directly the value of assets used solely in
priced services operation and to apportion the value of jointly used
assets between priced and nonpriced services. In addition, an estimate
of the assets of the Board of Governors directly involved in the
development of priced services is included in long-term assets in the
premises account.
The category long-term assets also includes an allocation of prepaid
pension costs associated with priced services. The Federal Reserve
Banks implemented Financial Accounting Standards Board Statement
No. 87—Employers' Accounting for Pensions, effective January 1,
1987. In accordance with the statement's terms, the Reserve Banks
recognized a credit to expenses and an increase in this long-term asset
account.
3. Liabilities and Equity. A matched-book capital structure for
those assets that are not "self-financing" has been used to determine
the liability and equity amounts. Short-term assets are financed with
short-term debt. Long-term assets are financed with long-term debt
and equity in a proportion equal to the ratio of long-term debt and
equity of the bank holding companies used in the PSAF model.
Federal Reserve Banks
A75
4.32 Pro forma income statement for priced services of the Federal Reserve System 1
Millions of dollars
Six months ending June 30
Quarter ending June 30
Item
1987
1987
1986
1986
Income2
Services provided to depository institutions
162.5
157.1
320.5
308.7
Expenses3
Production expenses
124.5
121.6
247.4
243.8
38.1
35.5
73.1
64.9
Income from operations
4
Imputed costs
Interest on float
Interest on debt
Sales taxes
FDIC insurance
5.6
4.0
1.8
.4
11.8
4.3
3.3
1.7
.3
26.3
Income from operations after imputed costs
9.6
10.6
8.1
3.4
.9
23.0
11.4
6.7
3.6
.7
50.1
25.8
22.3
42.6
3
Other income and expenses
Investment income
Earnings credits
29.3
28.5
Income before income taxes
Imputed income taxes
6
Net income
Targeted return on equity6
Details may not add to totals because of rounding.
1. The income statement reflects income and expenses for priced
services. Included in these amounts are imputed float costs, imputed
financing costs, and income related to clearing balances.
2. Income. Income represents charges to depository institutions for
priced services. This income is realized through one of two methods:
direct charges to an institution's account, or charges against accumulated earnings credits. Income includes charges for per-item fees,
fixed fees, package fees, explicitly priced float, account maintenance
fees, shipping and insurance fees, and surcharges.
3. Production Expenses. Production expenses include direct, indirect, and other general administrative expenses of the Federal Reserve Banks for providing priced services. Also included are the
expenses of the staff of the Board of Governors working directly on
the development of priced services, which in both years amounted to
$0.4 million in the second quarter and $0.9 million in the first six
months.
4. Imputed Costs. Imputed float costs represent the value of float to
be recovered, either explicitly or through per-item fees, during the
period. Float costs cover float incurred on checks, book-entry securities, noncash collection, ACH transactions, and wire transfers.
The following table reports the Federal Reserve's daily average
float performance and float recovery for the second quarter of 1987:
In millions of dollars
Total
float
Unrecovered
float
Float subject to recovery
Sources of float recovery
Income on clearing balances
As of adjustments
Direct charges
Per-item fees
$657.1
62.2
595.0
74.4
290.5
108.6
121.5
.7
28.8
26.5
2.2
55.6
55.0
.6
59.7
54.9
4.8
27.0
28.1
50.8
47.4
9.2
10.4
17.2
17.5
17.9
17.7
33.6
29.2
7.3
6.8
14.7
13.7
In the table, unrecovered float includes float generated in providing
services to government agencies or in other central bank services.
Float recovered through income on clearing balances represents
increased investable clearing balances as a result of reducing imputed
reserve requirements through the use of a CIPC deduction for float
when calculating the reserve requirement; this income then reduces
float required to be recovered through other means. As of adjustments
to the institution's reserve or clearing balance, or valuing the float at
the federal funds rate and billing the institution directly, are ways of
recovering midweek closing float and interterritory check float from
depositing institutions. The float recovered through per-item fees is
valued at the federal funds rate and has been added to the cost base
subject to recovery in the second quarter of 1987.
Also included in imputed costs is the interest on debt assumed
necessary to finance priced-service assets and the sales taxes and
FDIC insurance assessment that the Federal Reserve would have paid
had it been a private business firm.
5. Other Income Expenses. The category "Other income and
expenses" is comprised of income on clearing balances and the cost of
earnings credits granted to depository institutions on their clearing
balances. Income on clearing balances represents the average couponequivalent yield on three-month Treasury bills applied to the total
clearing balance maintained, adjusted for the effect of reserve requirements on clearing balances. Expenses for earnings credits are derived
by applying the average federal funds rate to the required portion of
clearing balances, and are adjusted for the net effect of reserve
requirements on clearing balances.
6. Income Taxes and Return on Equity. Imputed income taxes are
calculated at the effective tax rate derived from a model consisting of
the 25 largest bank holding companies.
The targeted return on equity represents the after-tax rate of return
on equity that the Federal Reserve would have earned had it been a
private business firm based on the bank holding company model.
A76
Federal Reserve Board of Governors
Chairman
Vice Chairman
MARTHA R . SEGER
MANUEL H . JOHNSON,
WAYNE D . ANGELL
OFFICE OF BOARD
MEMBERS
DIVISION
ALAN GREENSPAN,
JOSEPH R. COYNE, Assistant to the Board
DONALD J. WINN, Assistant to the Board
LYNN SMITH FOX, Special Assistant to the
OF INTERNATIONAL
E D W I N M . T R U M A N , Staff Director
LARRY J. PROMISEL, Senior Associate
CHARLES J. S I E G M A N , Senior Associate
D A V I D H . H O W A R D , Deputy Associate
Board
BOB S. MOORE, Special Assistant to the Board
ROBERT F. GEMMILL, Staff
LEGAL
DIVISION
MICHAEL BRADFIELD, General
J. VIRGIL M A T T I N G L Y , J R . ,
Counsel
Deputy General Counsel
RICHARD M. ASHTON, Associate General
Counsel
OLIVER IRELAND, Associate General
Counsel
RICKI R. TIGERT, Assistant General
Counsel
MARYELLEN A. BROWN, Assistant to the General
OFFICE OF THE
WILLIAM W . W I L E S ,
FINANCE
SECRETARY
Secretary
BARBARA R. LOWREY, Associate
Secretary
JAMES MCAFEE, Associate
Secretary
DIVISION OF CONSUMER
AND COMMUNITY
AFFAIRS
Adviser
D O N A L D B . A D A M S , Assistant Director
PETER HOOPER I I I , Assistant Director
K A R E N H . JOHNSON, Assistant Director
RALPH W . S M I T H , J R . , Assistant Director
DIVISION
Counsel
Director
Director
Director
OF RESEARCH
AND
STATISTICS
MICHAEL J. PRELL, Director
E D W A R D C . E T T I N , Deputy Director
JARED J. E N Z L E R , Associate Director
E L E A N O R J. STOCKWELL, Associate Director
M A R T H A B E T H E A , Deputy Associate Director
THOMAS D . SIMPSON, Deputy Associate Director
LAWRENCE SLIFMAN, Deputy
Associate
Director
PETER A . T I N S L E Y , Deputy Associate Director
S U S A N J. LEPPER, Assistant Director
M A R T H A S . S C A N L O N , Assistant Director
JOYCE K . ZICKLER, Assistant Director
L E V O N H . G A R A B E D I A N , Assistant Director
(Administration)
GRIFFITH L . G A R W O O D ,
Director
G L E N N E . L O N E Y , Assistant Director
E L L E N M A L A N D , Assistant Director
DOLORES S . S M I T H , Assistant Director
DIVISION
DIVISION OF BANKING
SUPERVISION AND
REGULATION
D O N A L D L . K O H N , Director
D A V I D E . L I N D S E Y , Deputy Director
RICHARD D . PORTER, Assistant Director
OF MONETARY
AFFAIRS
NORMAND R.V. BERNARD, Special Assistant
Staff Director
1
FRANKLIN D . DREYER, Deputy Director
D O N E . K L I N E , Associate Director
FREDERICK M . STRUBLE, Associate Director
WILLIAM A . RYBACK, Deputy Associate Director
STEPHEN C . SCHEMERING, Deputy Associate Director
RICHARD SPILLENKOTHEN, Deputy Associate Director
HERBERT A . B I E R N , Assistant Director
JOE M. CLEAVER, Assistant Director
A N T H O N Y C O R N Y N , Assistant Director
JAMES I. G A R N E R , Assistant Director
JAMES D . GOETZINGER, Assistant Director
MICHAEL G . M A R T I N S O N , Assistant Director
ROBERT S . PLOTKIN, Assistant Director
S I D N E Y M . S U S S A N , Assistant Director
L A U R A M . H O M E R , Securities Credit Officer
WILLIAM TAYLOR,
1. On loan from the Federal Reserve Bank of Chicago.
OFFICE OF THE INSPECTOR
BRENT L. BOWEN, Inspector
GENERAL
General
to the
Board
A77
and Official Staff
H . ROBERT HELLER
EDWARD W . KELLEY, JR.
OFFICE OF
STAFF DIRECTOR
FOR
OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK
ACTIVITIES
MANAGEMENT
S . D A V I D FROST, Staff Director
E D W A R D T . M U L R E N I N , Assistant Staff Director
PORTIA W . THOMPSON, Equal Employment Opportunity
Programs Officer
DIVISION
OF
DIVISION OF FEDERAL
BANK
OPERATIONS
PERSONNEL
CONTROLLER
GEORGE E . LIVINGSTON,
DIVISION
SERVICES
ROBERT E . FRAZIER, Director
GEORGE M . L O P E Z , Assistant Director
D A V I D L . W I L L I A M S , Assistant Director
OFFICE OF THE EXECUTIVE
INFORMATION RESOURCES
DIRECTOR FOR
MANAGEMENT
A L L E N E . B E U T E L , Executive Director
STEPHEN R . M A L P H R U S , Associate Director
DIVISION
SYSTEMS
OF HARDWARE
AND
SOFTWARE
Director
Assistant Director
ELIZABETH B . RIGGS, Assistant Director
ROBERT J. Z E M E L , Assistant Director
BRUCE M . BEARDSLEY,
THOMAS C . J U D D ,
DIVISION OF APPLICATIONS
STATISTICAL
SERVICES
WILLIAM R . JONES, Director
D A Y W . R A D E B A U G H , Assistant
RICHARD C . S T E V E N S , Assistant
PATRICIA A . W E L C H , Assistant
RESERVE
JOHN H. PARRISH, Assistant
Director
FLORENCE M. YOUNG,
Adviser
Controller
OF SUPPORT
Director
C L Y D E H . FARNSWORTH, J R . , Director
ELLIOTT C . M C E N T E E , Associate Director
D A V I D L . ROBINSON, Associate Director
C . WILLIAM SCHLEICHER, J R . , Associate Director
CHARLES W . B E N N E T T , Assistant Director
JACK D E N N I S , J R . , Assistant Director
E A R L G . H A M I L T O N , Assistant Director
D A V I D L . S H A N N O N , Director
JOHN R . W E I S , Assistant Director
CHARLES W . W O O D , Assistant Director
OFFICE OF THE
THEODORE E. ALLISON, Staff
DEVELOPMENT
Director
Director
Director
AND
A78
Federal Reserve Bulletin • November 1987
Federal Open Market Committee
FEDERAL
OPEN MARKET
COMMITTEE
MEMBERS
A L A N GREENSPAN,
Chairman
E . GERALD CORRIGAN,
W A Y N E D . ANGELL
E D W A R D G . BOEHNE
ROBERT H . BOYKIN
H . ROBERT HELLER
M A N U E L H . JOHNSON
SILAS K E E H N
ALTERNATE
ROBERT P . BLACK
ROBERT T . PARRY
Vice Chairman
E D W A R D W . KELLEY, JR.
MARTHA R . SEGER
GARY H . STERN
MEMBERS
ROBERT P . FORRESTAL
THOMAS M . TIMLEN
W . LEE HOSKINS
STAFF
DONALD L. KOHN, Secretary and Staff Adviser
NORMAND R . V . BERNARD, Assistant
Secretary
ROSEMARY R . LONEY,
Deputy Assistant Secretary
MICHAEL BRADFIELD, General
Counsel
JAMES H . OLTMAN, Deputy General Counsel
E D W I N M . TRUMAN, Economist (International)
PETER FOUSEK, Associate
Economist
RICHARD W. LANG, Associate
Economist
PETER D . STERNLIGHT, Manager
SAM Y . CROSS, Manager for
FEDERAL ADVISORY
DAVID E. LINDSEY, Associate
Economist
MICHAEL J. PRELL, Associate
Economist
ARTHUR J. ROLNICK, Associate
Economist
HARVEY ROSENBLUM, Associate
Economist
KARL A . SCHELD, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
THOMAS D. SIMPSON, Associate
Economist
for Domestic Operations, System Open Market Account
Foreign Operations, System Open Market Account
COUNCIL
JOHN G. MEDLIN, JR.,
President
JULIEN L . MCCALL, Vice President
JOHN F . MCGILLICUDDY, D E W A L T H . ANKENY, JR., AND F . PHILLIPS GILTNER,
JOHN P . L A WARE, First District
JOHN F. MCGILLICUDDY, Second District
SAMUEL A . MCCULLOUGH, Third District
JULIEN L . M C C A L L , Fourth District
JOHN G . M E D L I N , JR., Fifth District
B E N N E T T A . B R O W N , Sixth District
Directors
CHARLES T. FISHER, III, Seventh District
D O N A L D N. BRANDIN, Eighth District
D E W A L T H . ANKENY, JR., Ninth District
F . PHILLIPS GILTNER, Tenth District
GERALD W . FRONTERHOUSE, Eleventh District
JOHN D. MANGELS, Twelfth District
HERBERT V . PROCHNOW, SECRETARY
WILLIAM J. KORSVIK, ASSOCIATE SECRETARY
A79
and Advisory Councils
CONSUMER
ADVISORY
COUNCIL
E D W A R D N . LANGE, Seattle, Washington,
STEVEN W . H A M M , Columbia, South Carolina,
E D W I N B . BROOKS, JR., Richmond, Virginia
JONATHAN A . B R O W N , W a s h i n g t o n , D . C .
JUDITH N. B R O W N , Edina, Minnesota
MICHAEL S. CASSIDY, New York, New York
THERESA FAITH CUMMINGS, Springfield, Illinois
RICHARD B. DOBY, Denver, Colorado
RICHARD H . F I N K , Washington, D.C.
NEIL J. FOGARTY, Jersey City, N e w Jersey
STEPHEN GARDNER, Dallas, Texas
KENNETH A. H A L L , Picayune, Mississippi
ELENA G . HANGGI, Little Rock, Arkansas
ROBERT J. HOBBS, Boston, Massachusetts
RAMON E. JOHNSON, Salt Lake City, Utah
ROBERT W. JOHNSON, West Lafayette, Indiana
THRIFT INSTITUTIONS
ADVISORY
JOHN
M.
Chairman
Vice Chairman
KOLESAR,
Cleveland, Ohio
ALAN B. LERNER, Dallas, Texas
FRED S. MCCHESNEY, Chicago, Illinois
RICHARD L. D. MORSE, Manhattan, Kansas
HELEN E . NELSON, Mill Valley, California
SANDRA R. PARKER, Richmond, Virginia
JOSEPH L. PERKOWSKI, Centerville, Minnesota
BRENDA L. SCHNEIDER, Detroit, Michigan
JANE SHULL, Philadelphia, Pennsylvania
TED L. SPURLOCK, Dallas, Texas
MEL R. STILLER, Boston, Massachusetts
CHRISTOPHER J. SUMNER, Salt Lake City, Utah
E D W A R D J. WILLIAMS, Chicago, Illinois
MICHAEL ZOROYA, St. Louis, Missouri
COUNCIL
MICHAEL R . WISE, Denver, Colorado, President
JAMIE J. JACKSON, Houston, Texas, Vice President
GERALD M. CZARNECKI, Mobile, Alabama
JOHN C. DICUS, Topeka, Kansas
BETTY GREGG, Phoenix, Arizona
THOMAS A. KINST, Hoffman Estates,
Illinois
RAY MARTIN, Los Angeles, California
DONALD F. MCCORMICK, Livingston, N e w Jersey
JANET
M.
PAVLISKA,
Arlington, Massachusetts
HERSCHEL ROSENTHAL, Miami, Florida
WILLIAM G . SCHUETT, Milwaukee, Wisconsin
GARY L. SIRMON, Walla Walla, Washington
A80
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 indicated, payment should accompany request and be made to the
Board of Governors of the Federal Reserve System. Payment
from foreign residents should be drawn on a U.S. bank.
Stamps and coupons are not accepted.
THE
FEDERAL RESERVE SYSTEM—PURPOSES
TIONS. 1984. 120 p p .
A N N U A L REPORT.
AND
FUNC-
A N N U A L REPORT: BUDGET REVIEW, 1 9 8 6 - 8 7 .
FEDERAL RESERVE BULLETIN. Monthly. $ 2 0 . 0 0 per year or
$ 2 . 0 0 each in the United States, its possessions, Canada,
and Mexico; 10 or more of same issue to one address,
$ 1 8 . 0 0 per year or $ 1 . 7 5 each. Elsewhere, $ 2 4 . 0 0 per
year or $ 2 . 5 0 each.
BANKING AND MONETARY STATISTICS. 1 9 1 4 - 1 9 4 1 . (Reprint
of Part I only) 1 9 7 6 . 6 8 2 pp. $ 5 . 0 0 .
BANKING
AND
MONETARY
STATISTICS.
1941-1970.
1976.
1,168 pp. $15.00.
A N N U A L STATISTICAL DIGEST
1974-78.
1981.
1982.
1983.
1984.
1980. 305 pp. $10.00 per copy.
1982. 239 pp. $ 6.50 per copy.
1983. 266 pp. $ 7.50 per copy.
1984. 264 pp. $11.50 per copy.
1985. 254 pp. $12.50 per copy.
1985.
1 9 8 6 . 2 3 1 pp. $ 1 5 . 0 0 per copy.
HISTORICAL CHART BOOK. Issued annually in Sept. $ 1 . 2 5
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 SERIES OF CHARTS. Weekly. $21.00 per year or $.50 each in
the United States, its possessions, Canada, and Mexico;
10 or more of same issue to one address, $19.50 per year
or $.45 each. Elsewhere, $26.00 per year or $.60 each.
THE FEDERAL RESERVE ACT, and other statutory provisions
affecting the Federal Reserve System, as amended
through April 20, 1983, with Supplements covering
amendments through August 1986. 576 pp. $7.00.
REGULATIONS OF THE BOARD OF GOVERNORS OF THE F E D ERAL RESERVE SYSTEM.
A N N U A L PERCENTAGE RATE TABLES (Truth in Lending—
Regulation Z) Vol. I (Regular Transactions). 1969. 100
pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each
volume $2.25; 10 or more of same volume to one
address, $2.00 each.
FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY
UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one
address, $1.50 each.
THE BANK HOLDING COMPANY MOVEMENT TO 1978:
A
COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to
one address, $2.25 each.
1980. 68 pp. $1.50 each;
10 or more to one address, $1.25 each.
INTRODUCTION TO FLOW OF F U N D S .
PUBLIC POLICY A N D CAPITAL FORMATION.
1981. 3 2 6 p p .
$13.50 each.
Looseleaf; updated at least monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $75.00 per
year.
Monetary Policy and Reserve Requirements Handbook.
$75.00 per year.
Securities Credit Transactions Handbook. $75.00 per year.
Federal Reserve Regulatory Service. 3 vols. (Contains all
three Handbooks plus substantial additional material.)
$200.00 per year.
Rates for subscribers outside the United States are as
follows and include additional air mail costs:
Federal Reserve Regulatory Service, $250.00 per year.
Each Handbook, $90.00 per year.
FEDERAL RESERVE REGULATORY SERVICE.
THE U . S . ECONOMY IN AN INTERDEPENDENT WORLD: A
MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each.
WELCOME TO THE FEDERAL RESERVE.
PROCESSING A N APPLICATION THROUGH THE FEDERAL R E -
SERVE SYSTEM. A u g u s t 1985. 30 pp.
INDUSTRIAL PRODUCTION—1986 EDITION.
December 1986.
440 pp. $9.00 each.
FINANCIAL FUTURES A N D OPTIONS IN THE U . S . ECONOMY.
December 1986. 264 pp. $10.00 each.
CONSUMER EDUCATION
PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies
are available without charge.
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
Fair Credit Billing
Federal Reserve Glossary
A Guide to Business Credit and the Equal Credit Opportunity
Act
Guide to Federal Reserve Regulations
How to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You Use A Credit Card
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Organization and Advisory Committees
A81
PAMPHLETS FOR FINANCIAL
INSTITUTIONS
Short pamphlets on regulatory compliance, primarily suitable for banks, bank holding companies and creditors.
Limit of 50 copies
REVIEW OF THE TECHNIQUES A N D LITERATURE, b y
Kenneth Rogoff. October 1983. 15 pp.
133. RELATIONSHIPS AMONG EXCHANGE RATES, INTERVENTION, AND INTEREST RATES: A N EMPIRICAL IN-
VESTIGATION, by Bonnie E. Loopesko. November
1983. Out of print.
134. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION: A REVIEW OF THE LITERATURE, b y
The Board of Directors' Opportunities in Community Reinvestment
The Board of Directors' Role in Consumer Law Compliance
Combined Construction/Permanent Loan Disclosure and
Regulation Z
Community Development Corporations and the Federal Reserve
Construction Loan Disclosures and Regulation Z
Finance Charges Under Regulation Z
How to Determine the Credit Needs of Your Community
Regulation Z: The Right of Rescission
The Right to Financial Privacy Act
Signature Rules in Community Property States: Regulation B
Signature Rules: Regulation B
Timing Requirements for Adverse Action Notices: Regulation B
What An Adverse Action Notice Must Contain: Regulation B
Understanding Prepaid Finance Charges: Regulation Z
Ralph W. Tryon. October 1983. 14 pp. Out of print.
135. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION: APPLICATIONS TO C A N A D A , GERMA-
NY, AND JAPAN, by Deborah J. Danker, Richard A.
Haas, Dale W. Henderson, Steven A. Symansky, and
Ralph W. Tryon. April 1985. 27 pp. Out of print.
136. THE EFFECTS OF FISCAL POLICY ON THE U . S . ECONO-
MY, by Darrell Cohen and Peter B. Clark. January
1984. 16 pp. Out of print.
137. T H E IMPLICATIONS FOR B A N K MERGER POLICY OF
FINANCIAL DEREGULATION, INTERSTATE BANKING,
AND
FINANCIAL
SUPERMARKETS,
by
Stephen
A.
Rhoades. February 1984. Out of print.
138. ANTITRUST L A W S , JUSTICE DEPARTMENT GUIDELINES, AND THE LIMITS OF CONCENTRATION IN LOCAL BANKING MARKETS, by James Burke. June 1984.
14 pp. Out of print.
139. SOME IMPLICATIONS OF FINANCIAL INNOVATIONS IN
THE UNITED STATES, by Thomas D. Simpson and
Patrick M. Parkinson. August 1984. 20 pp.
140. GEOGRAPHIC MARKET DELINEATION: A REVIEW OF
STAFF STUDIES.- Summaries Only Printed in the
Bulletin
Studies and papers on economic and financial subjects that
are of general interest. Requests to obtain single copies of
the full text or to be added to the mailing list for the series
may be sent to Publications Services.
THE LITERATURE, by John D. Wolken. November
1984. 38 pp. Out of print.
141. A COMPARISON OF DIRECT DEPOSIT A N D CHECK PAYMENT COSTS, by William Dudley. November 1984.
15 pp. Out of print.
142. MERGERS
AND
BANKS, 1 9 6 0 - 8 3 ,
ACQUISITIONS
A.
by Stephen
1984. 30 pp. Out of print.
Staff Studies 115-125 are out of print.
114. MULTIBANK HOLDING COMPANIES: RECENT EVIDENCE ON COMPETITION AND PERFORMANCE IN
BANKING MARKETS, by Timothy J. Curry and John T.
Rose. Jan. 1982. 9 pp.
1 2 6 . DEFINITION A N D MEASUREMENT OF EXCHANGE MAR-
KET INTERVENTION, by Donald B. Adams and Dale
W. Henderson. August 1983. 5 pp. Out of print.
127. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: JANUARY-MARCH 1 9 7 5 , by Margaret L .
Greene. August 1984. 16 pp. Out of print.
128. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: SEPTEMBER 1977-DECEMBER 1 9 7 9 , b y M a r -
garet L. Greene. October 1984. 40 pp. Out of print.
129. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: OCTOBER I98O-OCTOBER 1 9 8 1 , by Margaret
L. Greene. August 1984. 36 pp.
130. EFFECTS OF EXCHANGE RATE VARIABILITY ON INTERNATIONAL TRADE AND OTHER ECONOMIC VARIABLES: A REVIEW OF THE LITERATURE, by Victoria S .
Farrell with Dean A. DeRosa and T. Ashby McCown.
January 1984. Out of print.
131. CALCULATIONS OF PROFITABILITY FOR U . S . DOLLARDEUTSCHE MARK INTERVENTION, by Laurence R .
Jacobson. October 1983. 8 pp.
132. TIME-SERIES STUDIES OF THE RELATIONSHIP BETWEEN EXCHANGE RATES AND INTERVENTION: A
BY
COMMERCIAL
Rhoades. December
143. COMPLIANCE COSTS AND CONSUMER BENEFITS OF
THE ELECTRONIC F U N D TRANSFER ACT: RECENT
SURVEY EVIDENCE, by Frederick J. Schroeder. April
1985. 23 pp. Out of print.
144. SCALE ECONOMIES IN COMPLIANCE COSTS FOR CONSUMER CREDIT REGULATIONS: T H E TRUTH IN L E N D ING AND EQUAL CREDIT OPPORTUNITY L A W S , b y
Gregory E. Elliehausen and Robert D. Kurtz. May
1985. 10 pp.
145. SERVICE CHARGES AS A SOURCE OF BANK INCOME
AND THEIR IMPACT ON CONSUMERS, by Glenn B .
Canner and Robert D. Kurtz. August 1985. 31 pp. Out
of print.
146. THE ROLE OF THE PRIME RATE IN THE PRICING OF
BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84,
by Thomas F. Brady. November 1985. 25 pp.
147. REVISIONS IN THE MONETARY SERVICES (DIVISIA)
INDEXES OF THE MONETARY AGGREGATES, by Helen
T. Farr and Deborah Johnson. December 1985. 42 pp.
148. THE MACROECONOMIC A N D SECTORAL EFFECTS OF
THE ECONOMIC RECOVERY TAX ACT: SOME SIMULA-
TION RESULTS, by Flint Brayton and Peter B. Clark.
December 1985. 17 pp.
149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS
IN BANKING BEFORE AND AFTER ACQUISITION, b y
Stephen A. Rhoades. April 1986. 32 pp.
150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: A REEXAMINATION AND AN APPLICATION, b y
John T. Rose and John D. Wolken. May 1986. 13 pp.
A82
151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT
PRICING FROM 1 9 8 3 THROUGH 1 9 8 5 , b y P a t r i c k I.
Mahoney, Alice P. White, Paul F. O'Brien, and Mary
M. McLaughlin. January 1987. 30 pp.
152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A
REVIEW OF THE LITERATURE, by Mark J. War-
shawsky. April 1987. 18 pp.
by Carolyn D. Davis
and Alice P. White. September 1987. 14 pp.
153. STOCK MARKET VOLATILITY,
1 5 4 . T H E EFFECTS ON CONSUMERS A N D CREDITORS OF
PROPOSED CEILINGS ON CREDIT C A R D INTEREST
RATES, by Glenn B. Canner and James T. Fergus.
October 1987. 26 pp.
REPRINTS
OF BULLETIN
ARTICLES
Most of the articles reprinted do not exceed 12 pages.
Limit of 10 copies
Foreign Experience with Targets for Money Growth. 10/83.
Intervention in Foreign Exchange Markets: A Summary of
Ten Staff Studies. 11/83.
A Financial Perspective on Agriculture. 1/84.
Survey of Consumer Finances, 1983. 9/84.
Bank Lending to Developing Countries. 10/84.
Survey of Consumer Finances, 1983: A Second Report.
12/ 84.
Union Settlements and Aggregate Wage Behavior in the
1980s. 12/84.
The Thrift Industry in Transition. 3/85.
A Revision of the Index of Industrial Production. 7/85.
Financial Innovation and Deregulation in Foreign Industrial
Countries. 10/85.
Recent Developments in the Bankers Acceptance Market.
1/ 86.
The Use of Cash and Transaction Accounts by American
Families. 2/86.
Financial Characteristics of High-Income Families. 3/86.
Prices, Profit Margins, and Exchange Rates. 6/86.
Agricultural Banks under Stress. 7/86.
Foreign Lending by Banks: A Guide to International and
U.S. Statistics. 10/86.
Recent Developments in Corporate Finance. 11/86.
U.S. International Transactions in 1986. 5/87.
Measuring the Foreign-Exchange Value of the Dollar. 6/87.
Turning the Corner on Troubled Farm Debt. 7/87.
A83
Index to Statistical Tables
References are to pages A3-A75 although the prefix 'A"
is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 19, 20
Assets and liabilities {See also Foreigners)
Banks, by classes, 18-20
Domestic finance companies, 37
Federal Reserve Banks, 10
Federal Reserve System, 74-75
Financial institutions, 26
Foreign banks, U.S. branches and agencies, 21, 70-73
Nonfinancial corporations, 36
Automobiles
Consumer installment credit, 40, 41
Production, 47, 48
Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 22
Turnover, 15
Depository institutions
Reserve requirements, 8
Reserves and related items, 3, 4, 5, 12
Deposits (See also specific types)
Banks, by classes, 3, 18-20, 21
Federal Reserve Banks, 4, 10
Turnover, 15
Discount rates at Reserve Banks and at foreign central
banks and foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
BANKERS acceptances, 9, 23, 24
Bankers balances, 18-20 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 34
Rates, 24
Branch banks, 21, 55, 70-73
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 36
Business loans (See Commercial and industrial loans)
EMPLOYMENT, 45
Eurodollars, 24
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 18
Federal Reserve Banks, 10
Central banks, discount rates, 67
Certificates of deposit, 24
Commercial and industrial loans
Commercial banks, 16, 19, 73
Weekly reporting banks, 19-21
Commercial banks
Assets and liabilities, 18-20
Commercial and industrial loans, 16, 18, 19, 20, 21
Consumer loans held, by type, and terms, 40, 41
Loans sold outright, 19
Nondeposit funds, 17
Real estate mortgages held, by holder and property, 39
Time and savings deposits, 3
Commercial paper, 23, 24, 37
Condition statements (See Assets and liabilities)
Construction, 44, 49,
Consumer installment credit, 40, 41
Consumer prices, 44, 50
Consumption expenditures, 51, 52
Corporations
Nonfinancial, assets and liabilities, 36
Profits and their distribution, 35
Security issues, 34, 65
Cost of living (See Consumer prices)
Credit unions, 26, 40. (See also Thrift institutions)
Currency and coin, 18
Currency in circulation, 4, 13
Customer credit, stock market, 25
DEBITS to deposit accounts, 15
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 18-21
FARM mortgage loans, 39
Federal agency obligations, 4, 9, 10, 11, 31, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation, and types and
ownership of gross debt, 30
Receipts and outlays, 28, 29
Treasury financing of surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 6, 17, 19, 20, 21, 24, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 38, 39
Federal Housing Administration, 33, 38, 39
Federal Land Banks, 39
Federal National Mortgage Association, 33, 38, 39
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 4, 10, 11, 30
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federal Reserve System
Balance sheet for priced services, 74
Condition statement for priced services, 75
Federal Savings and Loan Insurance Corporation insured
institutions, 26
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 37
Business credit, 37
Loans, 40, 41
Paper, 23, 24
Financial institutions
Loans to, 19, 20, 21
Selected assets and liabilities, 26
Float, 4, 75
Flow of funds, 42, 43
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21, 70-73
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 19, 20
Foreign exchange rates, 68
Foreign trade, 54
Foreigners
Claims on, 55, 57, 60, 61, 62, 64
Liabilities to, 20, 54, 55, 57, 58, 63, 65, 66
A84
GOLD
Certificate account, 10
Stock, 4, 54
Government National Mortgage Association, 33, 38, 39
Gross national product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 44, 51, 52
Industrial production, 44, 47
Installment loans, 40, 41
Insurance companies, 26, 30, 39
Interest rates
Bonds, 24
Consumer installment credit, 41
Federal Reserve Banks, 7
Foreign central banks and foreign countries, 67
Money and capital markets, 24
Mortgages, 38
Prime rate, 23
International capital transactions of United States, 53-67
International organizations, 57, 58, 60, 63, 64
Inventories, 51
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 18, 19, 20, 21, 26
Commercial banks, 3, 16, 18-20, 39
Federal Reserve Banks, 10, 11
Federal Reserve System, 74-75
Financial institutions, 26, 39
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 18-20
Commercial banks, 3, 16, 18-20
Federal Reserve Banks, 4, 5, 7, 10, 11
Federal Reserve System, 74-75
Financial institutions, 26, 39
Insured or guaranteed by United States, 38, 39
MANUFACTURING
Capacity utilization, 46
Production, 46, 48
Margin requirements, 25
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 6
Reserve requirements, 8
Mining production, 48
Mobile homes shipped, 49
Monetary and credit aggregates, 3, 12
Money and capital market rates, 24
Money stock measures and components, 3, 13
Mortgages {See Real estate loans)
Mutual funds, 35
Mutual savings banks, (See Thrift institutions)
NATIONAL defense outlays, 29
National income, 51
OPEN market transactions, 9
PERSONAL income, 52
Prices
Consumer and producer, 44, 50
Stock market, 25
Prime rate, 23
Producer prices, 44, 50
Production, 44, 47
Profits, corporate, 35
REAL estate loans
Banks, by classes, 16, 19, 20, 39
Real estate loans—Continued
Financial institutions, 26
Terms, yields, and activity, 38
Type of holder and property mortgaged, 39
Repurchase agreements, 6, 17, 19, 20, 21
Reserve requirements, 8
Reserves
Commercial banks, 18
Depository institutions, 3, 4, 5, 12
Federal Reserve Banks, 10
U.S. reserve assets, 54
Residential mortgage loans, 38
Retail credit and retail sales, 40, 41, 44
SAVING
Flow of funds, 42, 43
National income accounts, 51
Savings and loan associations, 26, 39, 40, 42. (See also
Thrift institutions)
Savings banks, 26, 39, 40
Savings deposits (See Time and savings deposits)
Securities (See specific types)
Federal and federally sponsored credit agencies, 33
Foreign transactions, 65
New issues, 34
Prices, 25
Special drawing rights, 4, 10, 53, 54
State and local governments
Deposits, 19, 20
Holdings of U.S. government securities, 30
New security issues, 34
Ownership of securities issued by, 19, 20, 26
Rates on securities, 24
Stock market, selected statistics, 25
Stocks (See also Securities)
New issues, 34
Prices, 25
Student Loan Marketing Association, 33
TAX receipts, federal, 29
Thrift institutions, 3. (See also Credit unions and Savings
and loan associations)
Time and savings deposits, 3, 13, 17, 18, 19, 20, 21
Trade,foreign, 54
Treasury cash, Treasury currency, 4
Treasury deposits, 4, 10, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 18, 19, 20
Treasury deposits at Reserve Banks, 4, 10, 28
U.S. government securities
Bank holdings, 18-20, 21, 30
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 10, 11, 30
Foreign and international holdings and transactions, 10,
30, 66
Open market transactions, 9
Outstanding, by type and holder, 26, 30
Rates, 24
U.S. international transactions, 53-67
Utilities, production, 48
VETERANS Administration, 38, 39
WEEKLY reporting banks, 19-21
Wholesale (producer) prices, 44, 50
YIELDS (See Interest rates)
A85
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK, Chairman
branch, or facility
Zip
Deputy Chairman
President
First Vice President
BOSTON*
02106
Joseph A. Baute
George N. Hatsopoulos
Frank E. Morris
Robert W. Eisenmenger
NEW YORK*
10045
John R. Opel
Virginia A. Dwyer
Mary Ann Lambertsen
E. Gerald Corrigan
Thomas M. Timlen
Buffalo
14240
John T. Keane
PHILADELPHIA
19105
Nevius M. Curtis
George E. Bartol III
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101
Charles W. Pairy
John R. Miller
Owen B. Butler
James E. Haas
W. Lee Hoskins
William H. Hendricks
Leroy T. Canoles, Jr.
Robert A. Georgine
Gloria L. Johnson
Wallace J. Jorgenson
Robert P. Black
Jimmie R. Monhollon
Bradley Currey, Jr.
Larry L. Prince
A. G. Trammell
Andrew A. Robinson
Robert D. Apelgren
C. Warren Neel
Caroline K. Theus
Robert P. Forrestal
Jack Guynn
Robert J. Day
Marcus Alexis
Robert E. Brewer
Silas Keehn
Daniel M. Doyle
W.L. Hadley Griffin
Robert L. Virgil, Jr.
James R. Rodgers
Raymond M. Burse
Katherine H. Smythe
Thomas C. Melzer
Joseph P. Garbarini
John B. Davis, Jr.
Michael W. Wright
Warren H. Ross
Gary H. Stern
Thomas E. Gainor
Irvine O. Hockaday, Jr.
Robert G. Lueder
James E. Nielson
Patience S. Latting
Kenneth L. Morrison
Roger Guflfey
Henry R. Czerwinski
Bobby R. Inman
Hugh G. Robinson
Mary Carmen Saucedo
Walter M. Mischer, Jr.
Robert F. McDermott
Robert H. Boykin
William H. Wallace
Fred W. Andrew
Robert F. Erburu
Richard C. Seaver
Paul E. Bragdon
Don M. Wheeler
John W. Ellis
Robert T. Parry
Carl E. Powell
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Vice President
in charge of branch
Charles A. Cerino1
Harold J. Swart1
Robert D. McTeer, Jr.1
Albeit D. Tinkelenberg1
John G. Stoides1
Delmar Harrison1
Fred R. Herr1
James D. Hawkins1
Patrick K. Barron1
Donald E. Nelson
Henry H. Bourgaux
Roby L. Sloan1
John F. Breen
James E. Conrad
Paul I. Black, Jr.
Robert F. McNellis
Enis Alldredge, Jr.
William G. Evans
Robert D. Hamilton
Tony J. Salvaggio1
Sammie C. Clay
Robert Smith, III1
Thomas H. Robertson
Thomas C. Warren2
Angelo S. Carella1
E. Ronald Liggett1
Gerald R. Kelly1
•"Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016;
Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
Senior Vice President.
Digitized for 1.
FRASER
2. Executive Vice President.
A86
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
April 1984
1
/
1
ALASKA
**
©
\
11
1
1
1
1
1
Z / p
•AN
LEGEND
©
Boundaries of Federal Reserve Districts
®
Federal Reserve Bank Cities
Boundaries of Federal Reserve Branch
Territories
*
Federal Reserve Branch Cities
•
Federal Reserve Bank Facility
Board of Governors of the Federal Reserve
System
@FedFRASER