Full text of Federal Reserve Bulletin : September 1984
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VOLUME 7 0 •
NUMBER 9 •
SEPTEMBER 1984
FEDERAL RESERVE
BULLETIN
Board of Governors of the Federal Reserve System
Washington, D.C.
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Stephen H. Axilrod • Michael Bradfield • S. David Frost
Griffith L. Garwood • James L. Kichline • Edwin M. Truman
Naomi P. Salus, Coordinator
The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Unit headed by Mendelle T. Berenson,
the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Helen L. Hulen.
Table of Contents
679 SURVEY
1983
OF CONSUMER
FINANCES,
This article presents results from the income and asset sections of the 1983 Survey
of Consumer Finances, including mainly
estimation of the debt obligations and asset
holdings of a nationally representative sample of 3,824 American families.
693 TREAS UR Y AND FEDERAL RESER VE
FOREIGN EXCHANGE
OPERATIONS
During the February-July period under review, the exchange markets were subject to
frequent shifts in expectations, and these
shifts were reflected in swings in dollar
rates.
705 INDUSTRIAL
PRODUCTION
Output rose about 0.2 percent in August.
707
ANNOUNCEMENTS
Statement on priced services.
Financial results for priced service operations.
Changes in Board staff.
Publication for comment of proposal to
revise and expand the Federal Reserve
Board's Rules Regarding Equal Employment Opportunity; extension of period for
comment on proposal to revise Regulation
K.
Revision of fees for wire transfers of funds.
Admission of six state banks to membership
in the Federal Reserve System.
717 RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET
COMMITTEE
At its meeting on July 16-17, 1984, the
Committee reviewed and reaffirmed the ba
sic policy objectives that it had established
in January for growth of the monetary and
credit aggregates in 1984 and set tentative
objectives for growth in 1985. For 1984 the
policy objectives included growth of 4 to 8
percent for M l and 6 to 9 percent for both
M2 and M3 for the period from the fourth
quarter of 1983 to the fourth quarter of
1984. The associated range for growth in
total domestic nonfinancial debt was also
reaffirmed at 8 to 11 percent for the year
1984. Given developments in the first half of
the year, the Committee anticipated that
M3 and nonfinancial debt might increase at
rates somewhat above the upper limits of
their 1984 ranges. The tentative ranges established for 1985 included reductions of 1
and Vz percentage point from the upper
limits of the 1984 ranges for M l and M2
respectively and no changes in the range for
M3 and the associated range for total domestic nonfinancial debt.
With regard to the implementation of
policy in the weeks immediately ahead, the
Committee issued a directive that called for
maintaining the existing degree of restraint
on reserve positions. The members expected such an approach to be associated with
growth of M l , M2, and M3 at annual rates
of around 5V2, IV2, and 9 percent respectively in the period from June to September.
The members agreed that somewhat greater
restraint on reserve conditions would be
acceptable in the context of more substantial growth in the monetary aggregates,
while somewhat lesser restraint might be
appropriate if monetary growth were significantly slower. In either event, the need for
greater or lesser restraint would be considered only against the background of developments relating to the continuing strength
of the business expansion, inflationary
pressures, conditions in financial markets,
and the rate of credit growth. It was agreed
that the intermeeting range for the federal
funds rate would be raised to 8 to 12 percent.
725 LEGAL
OF GOVERNORS
A 6 8 FEDERAL OPEN MARKET
AND STAFF; ADVISORY
AND
STAFF
COMMITTEE
COUNCILS
DEVELOPMENTS
Various bank holding company, bank service corporation, and bank merger orders;
and pending cases.
AI FINANCIAL
A 6 6 BOARD
AND BUSINESS
STATISTICS
A3 Domestic Financial Statistics
A42 Domestic Nonfinancial Statistics
A50 International Statistics
A65 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND SPECIAL
TABLES
A 7 0 FEDERAL RESERVE
PUBLICATIONS
A73 INDEX
BOARD
TO STATISTICAL
TABLES
A 7 5 FEDERAL RESERVE
AND OFFICES
BANKS,
A 7 6 MAP OF FEDERAL
RESERVE
BRANCHES,
SYSTEM
Survey of Consumer Finances, 1983
This article was prepared by Robert B. Avery,
Gregory E. Elliehausen, and Glenn B. Canner, of
the Board's Division of Research and Statistics,
and Thomas A. Gustafson of the U.S. Department of Health and Human Services. Neil Briskman, Julie Rochlin, and Robert Seifert helped
prepare the data. Footnotes appear at the end of
the article.
The financial position of American households
has changed significantly since 1970. To understand these changes better and to assess their
implications, the Board of Governors of the
Federal Reserve System, the United States Department of Health and Human Services, and
five other federal agencies joined together to
sponsor the 1983 Survey of Consumer Finances. 1
The overriding common interest among the sponsors was the estimation of the debt obligations
and asset holdings of a nationally representative
sample of American families. Such a balancesheet approach allows analysis of the net financial position of families, their use of financial
institutions, their holdings of various types of
assets, and the structure and sources of their
debt obligations. Besides collecting data on the
balance sheets from 3,824 families, the 1983
survey sought the attitudes of consumers toward
credit use, their reactions to new financial instruments and to consumer credit regulations, and
detailed information on consumer pension rights
and benefits.
This article presents results from the income
and asset sections of the 1983 Survey of Consumer Finances. Articles in forthcoming issues of the
F E D E R A L R E S E R V E B U L L E T I N will present other
results from the survey. In addition, a comprehensive presentation of the survey results is
being prepared.
HISTORICAL
ing that households had accumulated a large
stock of liquid assets during the war and had
deferred expenditures for a wide range of products, the Federal Reserve believed that information obtained from such a survey would be useful
in understanding and predicting consumer expenditure and savings patterns. The first such
survey was conducted in 1946 for the Federal
Reserve by the Bureau of Agricultural Economics of the United States Department of Agriculture. Surveys of consumer finances were conducted by the Survey Research Center of the
University of Michigan annually from 1947
through 1970 but then were discontinued. In
1977, balance-sheet data were collected as part
of a survey of consumer credit sponsored by the
federal banking agencies. 2 In addition, the Federal Reserve Board sponsored the one-time Survey
of Financial Characteristics of Consumers in
1962, which obtained consumer balance-sheet
data that were more detailed than those available
from the surveys of consumer finances.3 The
1983 Survey of Consumer Finances updates balance-sheet information from the 1977 survey. No
survey since the 1962 Survey of Financial Characteristics of Consumers has collected a more
comprehensive inventory of consumers' assets
than that contained in the 1983 survey. The latest
survey provides much new information that analysts may use to identify important trends in
income and wealth distribution, asset ownership,
and household borrowing patterns, and it affords
a comprehensive understanding of the financial
state of households. The recent survey provides
a unique opportunity to link data on consumer
assets and liabilities, income, and financial behavior.
SELECTED
RESULTS
OF THE 1983
SURVEY
ORIGINS
The Federal Reserve first sponsored a survey of
consumer finances just after World War II. Not
This article presents selected highlights from the
1983 Survey of Consumer Finances. The unit of
observation is the family, which is defined to
680
Federal Reserve Bulletin • September 1984
include all persons residing together in the same
dwelling who are related by blood, marriage, or
adoption. Families include one-person units as
well as units of two or more persons. 4 Balancesheet items are reported as of the date of the
interview; income is reported for the previous
calendar year.
The first section examines the distribution of
family income in 1982 and compares family income in 1969, 1976, and 1982. The next section
focuses on home equity, the largest single asset
in many families' asset portfolios. The final section presents survey results on ownership and
dollar amounts of holdings of various financial
assets. The discussion covers changes in holdings of financial assets between 1970 and 1983,
holdings of financial assets by income classes
and by various demographic groups, and the
characteristics of owners of different types of
financial assets. Appendix A describes the survey design and data preparation. Appendix B
discusses sampling, response, and nonresponse
errors.
Family
Income
Income is important both as a factor influencing
the saving and spending decisions of consumers
and as an indicator of economic well-being. The
1983 Survey of Consumer Finances asked respondents to report their total family income in
1982 from all sources, before deductions and
taxes. Family income, measured in current dollars, increased substantially from 1969 to 1982
(see table l). 5 By 1982, the proportion of families
with incomes of $25,000 or more had increased to
39 percent from 17 percent in 1976 and from less
than 5 percent in 1969. Since 1976, mean and
median family incomes have increased 55 percent to $26,259 and 44 percent to $19,446 respectively. 6
Because the large increases in prices during
the period under review make comparisons of
dollar amounts over time misleading, reported
family income was adjusted for changes in the
price level with the consumer price index (these
data are also presented in table 1). Comparison
of the income distribution in constant dollars
reveals that changes in real family income were
substantially smaller than those in nominal income. After remaining nearly constant at about
45 percent from 1969 to 1976, the proportion of
families with incomes of $25,000 or more (in
constant 1982 dollars) fell to 39 percent in 1982.
Mean and median real family incomes increased
slightly between 1969 and 1976. However, in
1982, mean real family income was 9 percent
lower than it was in 1976, and median real family
income was 16 percent lower.
1. Distribution of family income, selected years
Percentage distribution of families, except as noted
,
Family income
(dollars)
—
»
Current dollars
1969
14
12
16
16
25
11
4
2
1
1976
1982
„
. ..
,
Constant (1982) dollars
1969
1976
1982
1
7
8
10
10
20
15
12
6
5
3
3
3
7
8
7
14
13
11
9
13
7
10
2
4
7
6
10
13
13
11
17
8
9
2
5
6
7
11
12
11
10
15
9
12
3
7
8
7
14
13
11
9
13
7
10
100
Less than 3,000
3,000-4,999
5,000-7,499
7,500-9,999
10,000-14,999
15,000-19,999
20,000-24,999
25,000-29,999
30,000-39,999
40,000-49,999
50,000 and more
100
100
100
100
100
10,420
8,690
16,893
13,549
26,259
19,446
27,603
23,020
28,860
23,147
26,259
19,446
*
MEMO (dollars)
Median
*Less than 0.5 percent
SOURCES. George Katona, Lewis Mandell, and Jay Schmiedeskamp, 1970 Survey of Consumer Finances (University of Michigan,
Institute for Social Research, 1971); and Thomas Durkin and Gregory
E. Elliehausen, 1977 Consumer Credit Survey (Board of Governors of
the Federal Reserve System, 1977).
Survey of Consumer Finances, 1983
2. Share of family income, by income deciles,
selected years
Percentage distribution of families
Share of total income
Income decile
1969
Lowest
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth
Ninth
Highest
Total
1976
1982
1
3
5
6
8
9
11
12
16
29
1
3
4
6
7
8
10
13
16
32
1
3
4
5
7
8
10
13
16
33
100
100
100
SOURCES. Katona and others, 1970 Survey; and Durkin and Elliehausen, 1977 Survey.
In part, the changes in real family income
reflect differences in economic activity at the
time the surveys were conducted. Both in 1969
and in 1982, the economy was in recession, and
1976 was a year of economic recovery. The
decline in real family income may also be attributed to changes in family composition. For example, an increase in the number of "families"
consisting of unmarried people (including singleperson families) contributed to a decrease in
average family size between 1976 and 1982 and
may have reduced average family income.
Statistics from the national income and product accounts offer an interesting comparison with
these data. Such comparisons—between surveybased and aggregate measures of income—are
difficult to make because part of the aggregate
consists of income that consumers do not receive
in the form of money and consequently do not
report in surveys. Examples are the imputed
value of rental income for owner-occupied housing, contributions by employers to pensions, and
in-kind transfers. 7 Granted this qualification, aggregate real personal income increased 9 percent
from 1976 to 1982, but per capita income rose
only 3 percent. Per family real personal income
fell 3 percent, however, a decline somewhat
smaller than that observed between the 1977 and
the 1983 surveys. This divergence in trend suggests that changes in family composition indeed
were a factor in the changes in real family
income.
The distribution of family income over this
681
period is shown in table 2. The share of aggregate
family income received by the highest income
decile increased a little from 1969 to 1976, rising
from 29 percent to 32 percent; it then remained
virtually unchanged through 1982.
The accompanying diagram, which depicts a
Lorenz curve, graphically displays the size distribution of income presented in table 2. The
Lorenz curve is determined by plotting the cumulative percentage of aggregate income received by the cumulative percentage of families
arrayed from the lowest to the highest income.
For example, in this case, it shows that in 1982,
40 percent of the families received 13 percent of
the income (the sum of the first four numbers in
the last column of table 2). The degree of inequality is indicated by the area between the Lorenz
curve and the 45-degree line that signifies perfect
equality (that is, say, 40 percent of the families
receive 40 percent of the income). The larger this
area, the greater is the degree of inequality. The
curves in the chart indicate that the distribution
of family income has become somewhat more
unequal since 1969.8
Table 3 presents mean and median family
incomes according to the age, stage in the life
cycle, education, occupation, housing status,
and racial and ethnic characteristics of the head
of the family. Just as previous surveys of conDistribution of family income
Percentage of total income received
682
Federal Reserve Bulletin • September 1984
sumer finances found, the 1983 results reveal
that family income tends to increase with the age
of the head up to retirement and with the level of
education, and to be higher in families headed by
individuals in professional, technical, and managerial occupations. Whites also tend to have
3. Mean and median family income, by selected
family characteristics, 1983
Characteristic
Percent
of families
Age offamily head
(years)
Under 25
25-34
35-44
45-54
55-64
65-74
75 and over
Education of family
head
0-8 grades
9-11 grades
High school
diploma
Some college
College degree
Occupation of
family head
Professional,
technical
Manager
Self-employed
manager
Clerical or sales . . .
Craftsman or
foreman
Operative, labor, or
service worker
Farmer or farm
manager
Miscellaneous
Housing status
Own
Rent or other
Race offamily head
Caucasian
Nonwhite and
Hispanic
Life-cycle stage of
family head
Under 45 years
Unmarried, no
children
Married, no
children
Married, with
children
45 years and over
Head in labor
force
Head retired
All ages
Unmarried, with
children
All families
8
23
19
16
15
12
7
Family income (dollars)
Mean
Median
13,385
23,963
32,449
32,935
32,292
21,818
11,334
12,003
20,097
27,114
25,535
21,855
12,538
7,176
higher family incomes than nonwhites and Hispanics.
Home owner ship
For most Americans, homeownership is a major
social and economic objective. The surveys of
consumer finances reveal an increase in rates of
homeownership between 1970 and 1977 but a
decline between 1977 and 1983 (see table 4). 9
While nearly 65 percent of nonfarm families
owned their own homes in 1977, only 60 percent
of such families were owners in 1983.10 These
rates of homeownership exclude families that
reside in mobile homes, 83 percent of which were
owner-occupied.
4. Housing status of nonfarm families, selected years
Percentage distribution of families
11,718
17,146
8,870
13,755
32
20
19
23,830
27,412
46,443
20,000
22,000
35,000
14
11
36,191
44,685
28,278
35,000
5
13
49,925
23,416
30,000
18,000
18
24,730
22,075
29
16,675
14,000
2
8
26,477
12,309
16,365
6,991
64
36
31,754
16,503
24,623
13,000
82
28,035
21,000
18
18,405
12,722
12
18,749
15,000
7
32,516
28,150
23
30,659
25,800
26
22
35,821
17,315
27,000
10,200
9
13,487
11,020
100
26,259
19,446
Housing status
Homeowner
1
Mobile home
Other2
1970
1977
1983
62
32
4
2
65
28
6
1
60
32
6
2
100
14
13
100
100
1. Owners and renters.
2. Includes, among others, families who receive housing as a gift or
as compensation from employment and respondents who refused to
answer.
SOURCES. Katona and others, 1970 Survey, table 3-12; and Durkin
and Elliehausen, 1977 Survey, table 11-10.
Many factors could explain these changes in
homeownership. The perception that homeownership offered an effective hedge against inflation
may have contributed to the growth in homeownership during the 1970s. Growth in the number of
families with an unmarried head and increases in
mortgage interest rates may have been partly
responsible for the decline in homeownership in
recent years.
The frequency of homeownership is not uniform among all groups of consumers (see table
5). In 1983, at least two-thirds of all families
whose head was at least 35 years old owned their
own homes while only 34 percent of families
headed by someone under 35 did. Older persons,
whether working or retired, had the highest
frequency of homeownership. Rates of homeownership generally fell or were unchanged for
families at all stages of the life cycle between
Survey of Consumer Finances, 1983
5. Housing status of nonfarm families, by selected
characteristics, 1977 and 1983
Percentage of families
Own
Rent
Characteristic
1977
1983
1977
1983
43
54
63
80
92
36
51
60
82
89
50
36
25
17
7
52
38
32
13
11
65 and over
41
75
80
76
74
34
66
75
73
70
48
19
15
17
19
55
28
18
20
21
Race of family head
Caucasian
Nonwhite and Hispanic
66
52
64
40
24
42
28
51
14
45
72
23
44
65
78
46
19
71
44
26
Family income (constant,
1982, dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 and more
Age offamily head (years)
Under 35
35-44
45-54
55-64
Life-cycle stage of family
head
Under 45 years
Unmarried, no children .
Married, no children
Married with children
45 years and over
Head in labor force
Head retired
All ages
Unmarried, with children
77
77
76
69
15
18
17
23
41
38
48
54
All families
65
60
28
32
SOURCE. Durkin and Elliehausen, 1977 Survey.
683
1977 and 1983. The only exception was single,
childless individuals under 45. Of this group, 23
percent owned homes in 1983 compared with
only 14 percent in 1977. As table 5 shows,
homeownership rates fell for nonwhites and Hispanics but remained nearly the same for whites
between 1977 and 1983. In 1983, the rate of
homeownership was 60 percent higher for whites
than for nonwhites and Hispanics.
As one expects, homeownership rates increase
with family income. Only 36 percent of families
with incomes of less than $10,000 owned their
own homes in 1983, but 89 percent of families
with incomes of $50,000 or more were homeowners in that year. Comparisons over time of the
frequency of homeownership rates for families
arrayed by income, measured in constant 1982
dollars, indicates that for most groups homeownership rates declined between 1977 and 1983.
Equity in the home, defined as the current
value of the property less the amount of first
mortgage debt, is the largest asset for many
homeowners. 11 The 1983 survey asked each
homeowner to report the current market value of
his residence. In addition, each homeowner was
questioned about the terms of his outstanding
6. Value of houses owned by families and net equity in current and constant dollars, selected years
Percentage distribution of owner-occupied nonfarm houses except as noted
Current dollars
Value or equity1
1970
1977
Constant (1983) dollars
1983
1970
1977
1983
2
House value (dollars)
Less than 25,000
MEMO (dollars)
Mean
Median
Equity in house (dollars)
Less than 15,000
15,000-24,999
25,000-49,999
50,000-74,999
75,000 and more
MEMO (dollars)
Mean
Median
1. Mobile homes are excluded.
2. As valued by respondents in the year indicated, except that
houses purchased during 1976, 1977, 1982, or 1983 were valued at the
purchase price.
9
30
25
16
12
8
17
42
22
12
6
2
9
29
29
16
13
4
9
30
25
16
12
8
100
100
100
100
100
20,751
17,800
42,972
37,000
72,238
57,500
53,190
45,625
70,460
60,669
72,238
57,500
63
23
12
1
1
26
20
38
11
6
12
12
33
21
22
24
17
36
13
10
14
13
32
21
19
12
12
33
21
22
100
150,000 and more
21
49
19
7
3
1
100
25,000-49,999
50,000-74,999
75,000-99,999
100,000-149,999
71
25
3
100
100
100
100
100
14,767
11,800
32,122
27,000
56,133
41,261
37,853
30,246
52,670
44,272
56,133
41,261
*
1
*
*Less than 0.5 percent.
SOURCES. Katona and others, 1970 Survey, table 3-6; and Durkin
and Elliehausen, 1977 Survey.
684
Federal Reserve Bulletin • September 1984
mortgage debt. From the responses on payment
size, maturity, and interest rate, outstanding
mortgage debt was calculated. Estimated first
mortgage debt outstanding was subtracted from
reported property value to determine home equity for each homeowner.
Increases in housing prices boosted the median reported value of homes dramatically between
1970 and 1977, more than doubling it, from
$17,800 to $37,000 (see table 6). While nominal
housing prices continued to rise between 1977
and 1983, the median value of homes declined 5
percent in real terms over this six-year interval.
Interestingly, in face of this decline, the mean
real home value increased. This finding may be
attributed to an increase in the proportion of
families owning homes valued at $150,000 or
more measured in constant 1983 dollars.
Changes in calculated real equity values and
real home prices exhibited similar patterns between 1970 and 1983. Median home equity increased 46 percent in real terms between 1970
and 1977 and then declined nearly 7 percent to
$41,261 in 1983. Real mean home equity increased 39 percent between 1970 and 1977 and
then increased nearly 7 percent to $56,133 in
7. Mean and median net equity in homes of nonfarm
homeowning families, by selected characteristics,
1983
Dollars
Characteristic
Family income (dollars)
Less than 10,000
10,000-19,999
20,000-29,999
30,000-49,999
50,000 and more
Mean
Median
39,9%
42,896
48,309
55,679
100,675
29,810
35,000
38,075
46,206
74,756
Age offamily head (years)
Under 35
35-44
45-54
55-64
65 and over
31,4%
52,067
64,467
73,578
58,269
25,985
40,600
50,000
55,000
41,857
Race offamily head
Caucasian
Nonwhite and Hispanic
57,623
45,329
43,466
30,000
35,437
36,508
45,539
30,000
27,504
34,900
68,388
62,464
53,772
44,168
41,879
34,294
56,133
41,261
Life-cycle stage offamily head
Under 45 years
Unmarried, no children
Married, no children
Married with children
45 years and over
Head in labor force
Head retired
All ages
Unmarried, with children
All families
1983. However, home equity varies considerably
with the characteristics of the household (see
table 7). According to survey results, both mean
and median equity increase steadily with total
family income and with the age of the family
head until 65. In 1983, both mean and median
home equity were higher for whites than nonwhites and Hispanics.
Financial
Assets
Economic developments in the past six years
have altered markedly the selection of financial
assets by consumers. In financial markets,
deregulation has increased the discretion of financial institutions in the pricing and breadth of
product offerings. Nonbank competitors have
aggressively sought consumer savings with a
variety of new instruments. Yields on instruments, in both real and nominal terms, have also
risen substantially over this period. For these
reasons, asset holdings of consumers received
particular emphasis in the 1983 Survey of Consumer Finances.
Consumers were asked to report on their asset
holdings in greater detail than in any other recent
survey of consumer finances. Questions were
asked about the size and location of each checking, money market, and savings account. 12 Similar detail was solicited about stock holdings,
different types of bonds, trusts, mutual fund
holdings, individual retirement accounts (IRAs),
Keogh accounts, certificates of deposit, life insurance, loans to friends or relatives, real estate,
and businesses. Questions were asked about
pension assets and holdings in nontaxable forms
such as municipal bonds and nontaxable mutual
funds. Respondents were also queried about
their use of different financial services and the
reasons for their choices, about their attitudes
toward risk and savings, and about income received from various financial instruments. Emphasizing only a few of the numerous findings
from all of these questions, this section highlights
the ownership of liquid and total financial assets
by different types of families.
Comparisons of the percentages of families
holding different types of financial assets in 1970,
1977, and 1983 indicate a substantial reduction in
the proportion of families with savings accounts,
Survey of Consumer Finances, 1983
8. Families holding selected liquid and other
financial assets, selected years
Percentage of families
1970
Liquid assets
Checking account
Certificates of deposit
Savings account
Money market account
Savings bonds
Other financial assets
Stocks
Nontaxable bonds'
Other bonds'
1983
81
14
77
n.a.
31
79
20
62
14
21
25
}
1977
75
8
65
n.a.
27
Type of asset
25
19
2
2
3
1. The 1970 Survey did not distinguish between household ownership of municipal bonds (nontaxable) and corporate bonds (taxable),
n.a. Not available.
SOURCES. Katona and others, 1970 Survey; and Durkin and Elliehausen, 1977 Survey.
savings bonds, and stocks since 1977 (see table
8). The decline in savings accounts can be explained largely by the growth in holdings of other
685
assets such as individual retirement accounts,
certificates of deposit, and money market accounts. The decline in stock holding is somewhat
more puzzling, although it may be explained
partially by a decline in the popularity of stock
mutual funds and investment clubs as well as by
the lackluster performance of the stock market
during most of the 1977-83 period.
Table 9 shows distributions by dollar amount
of liquid and total financial asset holdings in
1970, 1977, and 1983. Liquid assets include
checking, money market, and savings accounts;
individual retirement and Keogh accounts; certificates of deposit; and savings bonds. Financial
assets are liquid assets plus stocks, other bonds,
and trusts. Over this period, the proportion of
families that did not report liquid assets declined
slightly, from 16 percent to 12 percent. Mean
holdings of liquid assets increased 15 percent in
9. Distribution of total financial assets and liquid assets, selected years
Percentage distribution except as noted
Current dollars
1970
1977
Constant (1983) dollars
1983
1970
1977
1983
11
24
9
12
11
6
7
8
5
6
12
27
9
13
10
5
7
7
5
5
Total financial assets'
16
34
10
14
9
4
5
3
2
1
11
30
10
14
9
6
6
7
4
3
12
27
9
13
10
5
7
7
5
5
16
22
9
13
11
6
6
7
5
5
100
1-999
1,000-1,999
2,000-4,999
5,000-9,999
10,000-14,999
15,000-24,999
25,000-49,999
50,000-99,999
100,000 and more
100
100
100
100
100
9,088
900
14,803
1,850
24,128
2,300
23,295
2,307
24,273
3,033
24,128
2,300
MEMO (dollars)
Median
Liquid assets2
16
14
12
11
11
15
9
8
2
2
11
13
10
9
11
15
9
12
3
6
12
9
9
10
10
14
10
13
5
8
16
7
6
9
11
15
11
12
5
7
11
9
7
9
10
14
12
13
6
10
12
9
9
10
10
14
10
13
5
8
100
None
1-199
200-499
500-999
1,000-1,999
2,000-4,999
5,000-9,999
10,000-24,999
25,000-39,999
40,000 and more
100
100
100
100
100
4,398
800
9,284
1,550
12,934
1,967
11,274
2,051
15,224
2,542
12,934
1,967
MEMO (dollars)
Mean
Median
1. Financial assets include liquid assets plus stocks, other bonds,
nontaxable holdings (municipal bonds and shares in certain mutual
funds), and trusts.
2. Liquid assets include checking accounts, savings accounts,
money market accounts, certificates of deposit, IRA and Keogh
accounts, and savings bonds.
SOURCE. Katona and others, 1970 Survey, and Durkin and Elliehausen, 1977 Survey.
686
Federal Reserve Bulletin • September 1984
constant dollars, from $11,274 in 1970 to $12,934
in 1983. In contrast, median holdings decreased 4
percent from 1970 to 1983. Mean and median
holdings were higher in 1977 than in either 1970
or 1983. However, as mentioned, 1970 and 1983
followed recessions, while 1977 was in the middle of an economic expansion. Thus holdings of
liquid assets may have been lower in 1970 and
1983 because families used such assets to meet
shortfalls in income.
Mean holdings of total financial assets were
roughly twice the amount of mean holdings of
liquid assets during this period. The mean
amount of financial assets in constant dollars
10. Mean and median liquid and total financial assets of families holding such assets, by selected family
characteristics, 1983
Characteristic
Percent of
families owning
liquid assets
Liquid assets (dollars)1
Mean
Median
Total financial assets (dollars)
Mean
Median
Family income (dollars)
Less than 5,000
5,000-7,499
7,500-9,999
10,000-14,999
15,000-19,999
20,000-24,999
25,000-29,999
30,000-39,999
40,000-49,999
50,000 and more
57
70
75
87
93
95
97
99
99
99
2,177
3,663
5,378
9,549
9,130
11,365
12,509
17,783
16,285
45,541
500
1,000
800
1,719
1,513
2,105
2,798
4,717
7,828
19,886
3,254
4,2%
6,114
11,619
12,021
14,078
18,539
22,752
32,342
125,131
513
1,000
848
2,205
1,780
2,385
3,349
5,950
10,631
31,658
Age offamily head (years)
Under 25
25-34
35-44
45-54
55-64
65-74
75 and over
81
87
91
89
91
88
86
1,972
4,274
8,911
14,826
25,439
30,666
26,481
600
1,203
3,000
3,308
7,425
9,676
7,885
2,646
7,%3
14,414
23,009
54,951
65,339
37,060
746
1,514
3,750
4,131
9,338
11,400
10,350
Education offamily head
0-8 grades
9-11 grades
High school diploma
Some college
College degree
72
77
91
93
98
9,552
11,394
11,822
13,165
25,112
1,490
1,519
2,212
2,888
7,825
10,598
14,437
17,221
24,466
61,016
1,502
1,800
2,550
3,785
10,977
Occupation of family head
Professional, technical
Manager
Self-employed manager
Clerical or sales
Craftsman or foreman
Operative, labor, or service worker...
Farmer or farm manager
Miscellaneous
97
%
96
94
90
79
93
74
19,276
22,651
34,784
13,623
9,690
6,122
38,619
15,169
5,521
7,720
11,110
3,255
2,105
1,115
8,500
1,275
32,226
47,713
125,983
24,433
13,592
7,441
42,118
21,751
7,727
10,650
15,150
4,225
2,775
1,316
10,203
1,372
Housing status
Own
Rent or other
94
78
18,385
6,759
5,000
1,000
34,534
12,010
6,069
1,100
Race offamily head
Caucasian
Nonwhite and Hispanic
93
66
16,050
6,217
3,500
961
30,560
7,339
4,500
1,000
89
91
92
4,980
6,338
6,460
1,303
2,384
1,677
7,920
9,479
10,177
1,700
2,894
1,842
93
86
20,962
28,203
6,230
6,725
42,790
50,170
8,199
8,747
Life-cycle stage of family head
Under 45 years
Unmarried, no children
Married, no children
Married, with children
45 years and over
Head in labor force
Head retired
All ages
Unmarried, with children
All families
67
4,016
775
11,062
%1
88
14,695
2,850
27,365
3,500
1. The figures for mean and median liquid and total financial assets
in this table differ from those in table 9 because the latter include
families without liquid or financial assets.
Survey of Consumer Finances, 1983
increased slightly, from $23,295 in 1970 to
$24,128 in 1983. Median holdings of financial
assets were about the same in real terms in 1970
and 1983.
The proportion of owners and the dollar
amounts of holdings of liquid assets, and of
financial assets generally, rise dramatically from
the lowest to the highest family income groups
(see table 10). The proportion of families having
liquid assets increases from 57 percent for families with less than $5,000 to 97 percent or more
for families with above $25,000. The rise of both
mean and median dollar holdings of liquid assets
with income is also striking. However, the mean
687
holdings are much higher than the medians,
reflecting very large holdings by a few families.
Holdings of liquid assets by age, stage in the
life cycle, education, occupation, housing status,
and racial and ethnic group follow the patterns
related to income with one notable exception.
Although families headed by an older or retired
person are less likely to own liquid assets, those
who do own them tend to have holdings that are
larger than the average.
The 1983 patterns of ownership of specific
assets by different groups, shown in table 11, are
consistent with findings from past surveys. Lowincome and nonwhite and Hispanic families are
11. Ownership of selected assets by families, by selected family characteristics, 1983
Percentage of families
Financial assets
Other assets
Liquid assets
Other financial assets
Characteristic
Checking account
Money
Savings market
account account
Certificates of
deposit
IRA or
Keogh
account
Savings
bonds
Stocks
Bonds
Nontaxable
holdings'
Trust
Property
Business
Family income
(dollars)
Less than 10,000 .
10,000-19,999
20,000-29,999
30,000-49,999
50,000 and more ..
53
77
88
94
97
39
59
72
78
75
3
10
12
21
36
10
19
21
26
36
2
7
16
30
55
7
16
24
33
35
5
13
20
31
51
*
*
2
3
3
11
2
1
4
16
2
2
3
6
12
7
14
18
28
44
5
8
16
21
37
Age offamily head
(years)
Under 35
35-44
45-54
55-64
65 and over
72
83
81
83
80
63
68
65
58
53
8
16
12
18
18
9
16
18
30
37
9
19
25
33
8
20
27
23
21
14
13
22
22
25
21
1
3
3
5
4
1
3
3
5
5
4
4
6
4
3
10
20
22
30
20
7
13
11
12
7
Housing status
Own
Rent or other
88
63
68
51
17
8
27
9
22
7
25
13
24
11
3
2
4
1
5
3
24
9
12
4
Race
Caucasian
Nonwhite and
Hispanic
85
66
15
23
19
23
22
49
45
5
6
6
10
7
73
62
13
9
11
14
17
Life-cycle stage of
family head
Under 45 years
Unmarried, no
children —
Married, no
children
Married with
children
45 years and over
Head in labor
force
Head retired
All ages
Unmarried with
children
All families
3
3
5
21
16
*
2
1
11
7
2
1
3
10
10
84
68
17
13
15
23
21
1
2
6
15
14
82
70
10
13
15
28
17
1
2
4
18
19
86
78
66
50
17
16
27
34
32
8
23
15
25
20
4
4
4
5
5
3
28
19
22
7
54
50
6
8
5
16
9
2
1
4
7
4
79
62
14
20
17
21
19
3
3
4
19
14
1. Municipal bonds and shares in certain mutual funds.
"Less than 0.5 percent.
688
Federal Reserve Bulletin • September 1984
considerably less likely than upper income and
white families to have accounts with financial
institutions. As might be expected, ownership of
every type of asset is an increasing function of
income. The stage in the life cycle appears to
have less influence than income does on holdings
except for certificates of deposit, individual retirement accounts, and nontaxable bonds. Intergroup differences are even less apparent for
median dollar holdings (table 12). Although, in
general, nonwhites and Hispanics are less likely
to hold assets, those who have them apparently
hold amounts similar to those held by white
families.
The survey data suggest that ownership of
nonbank financial assets, such as stocks and
bonds, is not widespread. Most families that own
stock did not appear to be active investors. For
example, of the one-fifth in the sample who
reported owning stock, only 40 percent reported
owning shares in more than one company. An
even smaller percentage of stockowners reported
having a brokerage account (35 percent) or trading stock in 1982 (27 percent). Similarly, only a
small fraction of the sample reported seeking
advice from professionals such as lawyers (5
percent), accountants (6 percent), or tax advisers
(4 percent). The same was true of families in the
12. Median amount of assets of families holding such assets, by selected family characteristics, 1983
Dollars
Financial assets
Other assets
Other financial assets
Liquid assets
Characteristic
Checking account
Savings
account
Money
market
account
Certificates of
deposit
IRA or
Keogh
account
Savings
bonds
Stocks
Bonds
Nontaxable
holdings1
Trust
Property
Business
Family income
(dollars)
Less than 10,000 .
10,000-19,999
20,000-29,999
30,000-49,999
50,000 and more ..
300
400
500
625
1,700
500
840
1,100
1,500
3,837
3,160
5,250
7,250
6,000
14,000
5,799
13,250
11,902
10,000
18,046
2,000
2,500
2,000
3,332
4,500
205
200
300
475
500
1,957
3,500
2,000
3,250
13,512
1,827
10,000
6,250
8,500
20,000
6,923
12,240
3,000
6,500
26,604
3,282
2,654
5,750
10,000
15,000
15,000
20,000
29,375
40,000
83,000
20,000
12,867
31,250
42,500
100,000
Age of family head
(years)
Under 35
35-44
45-54
55-64
65 and over
300
500
600
995
987
500
1,194
1,400
1,588
2,412
4,388
6,000
15,250
7,400
11,156
4,000
8,717
8,250
12,255
19,892
2,000
3,000
3,790
4,000
6,000
200
300
330
750
846
1,200
3,300
3,623
7,250
10,150
7,511
5,272
8,400
12,500
20,500
2,747
8,673
16,500
17,500
21,932
2,957
8,000
10,000
15,500
20,791
25,000
40,000
27,000
40,000
40,000
13,500
40,000
52,500
55,000
83,202
Housing status
Own
Rent or other
600
400
1,500
572
9,213
5,000
11,000
7,957
4,000
2,250
352
288
5,000
2,500
15,000
5,511
14,125
9,914
10,000
3,032
35,750
30,199
52,500
20,690
Race of family
head
Caucasian
Nonwhite and
Hispanic
535
1,240
8,000
10,000
4,000
326
4,673
10,000
15,726
10,000
40,000
47,700
400
700
10,000
10,000
2,500
288
989
17,500
2,417
1,616
20,000
50,000
400
525
5,000
4,500
2,875
200
2,073
10,000
5,750
400
32,500
13,500
500
890
4,750
5,200
2,918
300
1,550
1,100
5,500
6,016
40,450
24,690
350
1,000
6,000
5,400
2,376
200
2,500
5,272
7,676
2,960
31,546
30,000
750
900
1,550
2,188
10,000
11,156
10,000
19,392
4,000
4,000
500
800
5,040
10,000
10,000
17,500
22,500
13,740
12,872
20,500
40,000
31,000
55,000
97,500
264
460
4,000
5,000
1,728
263
1,650
850
10,298
3,200
20,250
13,392
500
1,151
8,000
10,000
4,000
325
4,016
10,000
14,125
10,000
35,000
50,000
Life-cycle stage of
family head
Under 45 years
Unmarried, no
children
Married, no
children
Married with
children
45 years and over
Head in labor
force
Head retired
All ages
Unmarried with
children
All families
1. Municipal bonds and shares in certain mutual funds.
Survey of Consumer Finances, 1983
689
13. Selected characteristics of asset owners and assets, by type of asset, 1983
Percent of
all families
owning
Median size
of asset
(dollars)
Median
income
of owners
(dollars)
Median total
financial
assets
of owners
(dollars)
Financial assets, total
Liquid assets
Checking account
Savings account
Money market account
Certificates of deposit
IRA or Keogh account
Savings bonds
88
79
62
14
20
17
21
2,850
500
1,151
8,000
10,000
4,000
325
21,600
23,000
23,580
33,190
26,000
38,170
29,003
Other financial assets
Stocks
Bonds
Nontaxable holdings'
Trust
19
3
3
4
4,016
10,000
14,125
10,000
Other assets
Property
Business
19
14
Type of asset
Percent held by selected
families, ranked by income
Top 10
percent
Top 2
percent
3,501
4,355
4,839
27,360
26,750
20,961
8,782
51
41
26
40
33
48
26
30
23
8
15
15
17
12
33,438
42,500
52,575
32,128
22,626
71,952
115,250
25,395
72
70
86
46
50
39
71
34
35,000
50,000
31,000
32,138
12,036
11,300
50
78
20
33
top income decile, those with incomes of $50,000
or more: Only about one-half of these families
reported owning any stock, and less than onesixth reported owning other nonbank financial
assets. Even for this group, dollar holdings of
real estate property and business holdings were
more important than holdings of financial assets.
The concentration of nonliquid financial assets
in a small number of families with very high
incomes is apparent from table 13. That table
presents the median income and median total
financial assets in 1983 along with the percentage
of total dollar holdings of each type of asset held
by the top 10 percent of families in the sample
(income of $50,000 or more) and the top 2
percent (income of $100,000 or more). Similar
calculations are presented for total financial assets. The results are striking. Asset holdings are
much more highly concentrated than family income. More than 70 percent of the dollar holdings of nontaxable bonds, 50 percent of the
stockholdings, and 39 percent of the other bonds
are held by the 2 percent of families with incomes
that exceed $100,000. Yet only 15 percent of the
liquid asset holdings and 20 percent of the property values are held by this group. These families
hold about 30 percent of the financial assets in
the sample, yet receive about 15 percent of the
income.
FUTURE
1. Municipal bonds and shares in certain mutual funds.
REPORTS
Articles in forthcoming issues of the B U L L E T I N
will focus on other results from the 1983 Survey
of Consumer Finances. Family debt will be the
next topic covered, along with an analysis of
both the level and the changes in mortgage debt
and consumer credit outstanding. The article will
also investigate the sources of these loans and
the factors that influence the family's selection of
a creditor.
Recognizing that a relatively small proportion
of families have substantially larger holdings of
assets than other families, and thus are adequately represented only in a very large random sample, the sponsors of the 1983 Survey of Consumer Finances obtained a special sample of
high-income families from the United States Department of the Treasury. These families were
given the same questionnaire as the larger, crosssection sample, whose results are reported here.
In total, 438 high-income families completed
interviews. This special sample presents an unusual opportunity to examine in some detail the
financial behavior of the very wealthy. The results of this analysis will be presented in a
forthcoming B U L L E T I N .
690
Federal Reserve Bulletin • September 1984
FOOTNOTES
1. The other agencies were the Federal Deposit Insurance
Corporation, the Comptroller of the Currency, the Federal
Trade Commission, the U.S. Department of Labor, and the
U.S. Treasury, Office of Tax Analysis.
2. Thomas A. Durkin and Gregory E. Elliehausen, 1977
Consumer Credit Survey (Board of Governors of the Federal
Reserve System, 1978).
3. Dorothy S. Projector and Gertrude S. Weiss, Survey of
Financial Characteristics of Consumers (Board of Governors
of the Federal Reserve System, August 1966).
4. This definition of "family" is consistent with those used
in previous surveys of consumer finances. However, it differs
from the definition used by the Bureau of the Census. The
bureau calls one-person units "nonfamily householders" or
"secondary individuals," depending on their housing arrangements.
5. Data for 1969 and 1976 family income in table 1 are from
the data tapes of the 1970 Survey of Consumer Finances and
the 1977 Consumer Credit Survey respectively. There were
2,317 respondents in the 1970 survey and 2,563 respondents
in the 1977 survey. Summaries of the basic results of these
surveys are found in George Katona, Lewis Mandell, and Jay
Schmiedeskamp, 1970 Survey of Consumer Finances (University of Michigan, Institute of Social Research, 1971), and
Durkin and Elliehausen, 1977 Consumer Credit Survey.
6. Survey respondents have a tendency to underreport
income so that the actual means and medians are likely to be
higher than those shown in table 1. For a discussion of
response errors in consumer surveys and the implications for
analysis, see Arthur L. Broida, "Consumer Surveys as a
Source of Information for Social Accounting: The Problems," in The Flow-of-Funds Approach to Social Accounting: Appraisals, Analysis and Applications, National Bureau
of Economic Research, Studies in Income and Wealth, vol.
26 (Princeton University Press, 1962), pp. 335-81.
APPENDIX
A: SURVEY
DESIGN
The methods employed in the 1983 Survey of
Consumer Finances are similar to those used in
earlier surveys. 13 A multistage probability sampling design was used to select a sample of
dwelling units and their occupants representative
of all families in the coterminous United States
(the lower 48 states), exclusive of those on
military installations. Participating families were
drawn from 74 sample points in 37 states and the
District of Columbia. The sample represents the
four major geographic regions—Northeast,
North Central, South, and West—in proportion
to their respective populations. Probability selection was enforced at all stages of sampling.
Interviewers were given no discretion in the
choice of households and families to be interviewed.
7. The Census Bureau's Current Population Survey (CPS)
provides annual data on household income. The bureau
reports a downward trend since 1973 in mean and median real
family income. Its data for 1969, 1976, and 1982 family
income are consistent with findings from the surveys of
consumer finances. Like the survey, the CPS does not
include the imputed rental value of owner-occupied housing
or other forms of nonmoney income.
8. The Gini coefficient is the ratio of the area between the
Lorenz curve and the 45-degree line to the total area below
the 45-degree line. The larger this ratio, the greater the degree
of inequality. Gini ratios for 1969, 1976, and 1982 are 0.39,
0.42, and 0.45 respectively. Thus the distribution of family
income, by this measure, appears to have become more
unequal during the years 1969-82.
9. The 1983 figure for homeownership in table 4 differs
from the one in table 3 because farm families are excluded in
table 4 and occupants of mobile homes are in a separate
category.
10. The growing inability of families in early stages of the
life cycle to afford homes is probably a more important factor
than foreclosures and forced sales in the decline in homeownership.
11. Home equity could also be defined to exclude outstanding second mortgages and other debts secured by the
home.
12. Money market accounts include both money market
deposit and money market mutual fund accounts.
13. Copies of the questionnaire, code book, and data tape
containing responses to the survey may be obtained from
Robert Chamberlin, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.
Interviewing for the 1983 survey was carried
out by the Survey Research Center of the University of Michigan from February through July
1983. A total of 3,824 families voluntarily participated and completed personal interviews during
this period. Within each participating family the
individual selected as respondent was either the
head of the family or, in the case of a married
couple, the person most knowledgeable about
the family finances. Respondents were encouraged to consult other family members and financial records in an effort to obtain complete and
accurate responses. Nevertheless, as is the case
with all sample surveys, data derived from the
Survey of Consumer Finances are subject to
sampling errors, reporting errors, and errors due
to nonreporting. Appendix B discusses the influence of these factors on the results of consumer
surveys.
Survey of Consumer Finances, 1983
691
The numbers presented in the tables of this
article are based upon data that differ somewhat
from the raw sample responses. Particularly for
questions of a sensitive nature, respondents are
not always willing to answer. As a result, conclusions based only on actual responses, ignoring
missing values, can be biased. To correct for this
potential bias, a series of statistical procedures
was used with the 1983 survey data to impute
missing values. A detailed discussion of these
imputation techniques will appear in the comprehensive report on the results of the 1983 Survey
of Consumer Finances.
To summarize these procedures, observations
were separated into two groups: those in which
the majority of dollar figures were present and
those in which they were not. A combination of
regression models, "hot deck" imputations, and
inferences from other surveys was used to assign
values for all missing asset, liability, and income
data in the former group. The 159 observations in
the latter group (4.1 percent of the sample) were
discarded. A probit regression was fit for the
included and excluded groups utilizing information available for all observations, to calculate a
sampling weight to compensate for any nonrandom exclusion of observations with missing values. This weight was used in conjunction with
the survey's response weights to weight the
3,665 observations used to construct the tables.
Although this procedure could have altered results, as a practical matter, weighted tables did
not differ dramatically from tables computed
from unweighted data.
APPENDIX
B.l. Approximate sampling errors of survey
findings, by size of sample or subgroup1
B:
SAMPLING,
NONRESPONSE
RESPONSE,
AND
ERRORS
Percentage
Estimates of population characteristics derived
from sample interview surveys such as the 1983
Survey of Consumer Finances differ somewhat
from the figures that would have been obtained if
a complete census had been taken using the same
questionnaire, instructions, and enumerators.
All information derived from the surveys of
consumer finances is subject to sampling errors,
reporting errors, and errors due to nonreporting.
Sampling
Errors
Sampling errors arise when survey estimates are
based on a sample of a population rather than a
complete census of that population. Sampling
error is a measure of the possible random deviation of survey findings resulting from the selection of a particular sample. A statistical technique is available for measuring these chance
fluctuations in survey results. Although this
technique does not measure the actual error of a
particular sample result, given a stated probability and a known sample size, it does provide a
method of determining the range on either side of
the sample estimate within which the " t r u e "
value is likely to fall.
Table B.l contains the approximate sampling
Reported
percentage
50
30 or 70
20 or 80
10 or 90
5 or 95
Number of interviews
3,000
2,000
1,000
500
300
100
2.5
2.3
2.0
1.5
1.1
2.8
2.5
2.2
1.7
1.2
3.6
3.3
2.9
2.2
1.6
4.9
4.5
3.9
2.9
2.1
6.2
5.7
4.9
3.7
2.7
10.5
9.6
8.4
6.3
4.6
1. The figures in this table represent two standard errors.
errors associated with various sample sizes and
reported percentages from a survey. This table
was constructed assuming a 95 percent confidence level. Therefore, for most responses, the
chances are 95 in 100 that the value being estimated lies within a range equal to the reported
percentages, plus or minus the sampling error.
For most of the tables presented in this article,
the appropriate sample size is between 1,000 and
2,000 respondents.
Reporting
Errors
All survey results are subject to reporting errors.
Reporting errors may occur either accidentally,
purposely, or from a lack of information. Reporting errors arise because respondents may misunderstand questions, falsify responses, or simply
692
Federal Reserve Bulletin • September 1984
lack interest in the survey. They may also arise
because interviewers misinterpret responses or
query respondents in an inconsistent manner.
These sources of error can be minimized by
careful training of interviewers and by gaining
the confidence and cooperation of respondents.
Identifying inconsistencies during data processing and coding of responses also aids in minimizing reporting errors.
Nonresponse
Errors
Nonresponse errors arise because of an inability
to interview a family selected for participation in
the survey. This inability may occur because the
family refuses to participate, cannot be contacted after repeated callbacks, is medically incapacitated, or does not understand the language
used by the interviewer. Problems of nonresponse may be reduced by imposing strict requirements for response rates on the organization conducting the interviewing. A response
rate of 71 percent was achieved for the 1983
Survey of Consumer Finances, while the 1977
Survey of Consumer Credit recorded a response
rate of 75 percent. Nonresponse errors, like
reporting errors, are not precisely measurable.
However, they seem to remain fairly constant in
successive surveys.
693
Treasury and Federal Reserve
Foreign Exchange Operations
This 45th joint report reflects the
TreasuryFederal Reserve policy of making available additional information on foreign exchange operations from time to time. The Federal
Reserve
Bank of New York acts as agent for both the
Treasury and the Federal Open Market Committee of the Federal Reserve System in the conduct
of foreign exchange
operations.
This report was prepared by Sam Y. Cross,
Manager of Foreign Operations for the System
Open Market Account and Executive Vice President in charge of the Foreign Group of the
Federal Reserve Bank of New York. It covers the
period February 1984 through July 1984. Previous reports have been published in the March
and September [October 1982] BULLETINS of
each year beginning with September 1962.
resolved quickly. Market participants felt that
the scope for flexibility in monetary policy would
similarly be limited in view of sensitivities to the
high level of interest rates both in nominal and
real terms.
Meanwhile, the climate for investment abroad
appeared to be improving. News of strengthening foreign industrial activity and orders, especially in Germany, generated expectations of
rising earnings and prompt relief from earlier
financial strains. Inflation remained quiescent,
and several countries were making clear progress
in reducing the structural components of their
budget deficits.
Under these circumstances, foreign exchange
market participants questioned whether the burgeoning current account deficit of the United
During the February-July period under review,
the exchange markets were subject to frequent
shifts in expectations, shifts that were reflected
in swings in dollar rates. The dollar declined
substantially during February and early March
only to strengthen thereafter. By the end of July,
it had risen on balance against major currencies
to trade at an 11-month high against the Japanese
yen, an 11-year high against the German mark,
and at record levels against many other European currencies.
In early February, sentiment toward the dollar
turned decidedly cautious, though it was trading
in the exchange markets close to highs reached in
early January. Market observers were concerned
that economic policies would be unduly stimulative given the economy's underlying strength,
and they came to focus on the risk for the dollar
of a potential rekindling of inflation. Evidence
indicated that the U.S. economy was growing far
more rapidly than had been estimated just weeks
before. Budget deliberations left the impression
that the deficit problems were unlikely to be
1. Federal Reserve reciprocal currency arrangements
Millions of dollars
Amount of
facility,
July 31,
1983
Amount of
facility,
July 31,
1984
Austrian National Bank
National Bank of Belgium
Bank of Canada
National Bank of Denmark
Bank of England
Bank of France
German Federal Bank
Bank of Italy
250
1,000
2,000
250
3,000
2,000
6,000
3,000
250
1,000
2,000
250
3,000
2,000
6,000
3,000
Bank of Japan
Bank of Mexico
Regular facility
Special facility
Netherlands Bank
Bank of Norway
Bank of Sweden
Swiss National Bank
5,000
5,000
700
269
500
250
300
4,000
700
0)
500
250
300
4,000
600
600
1,250
1,250
30,369
30,100
Institution
Bank for International
Settlements
Swiss francs/dollars
Other authorized European
currencies/dollars
Total
1. Facility, which became effective August 30, 1982, expired on
August 23, 1983.
694
Federal Reserve Bulletin • September 1984
States could be financed at prevailing exchange
rates and interest differentials. The deficits projected for 1984-85 implied that the United States
would require capital inflows of such a magnitude as to eliminate the large net creditor position the United States had established over the
entire postwar period. Public officials and private
commentators around the world expressed concern about the size of the financing requirements
ahead, the dependency of the United States on
foreign capital inflows, and the vulnerability of
the dollar to a potential shift in investor sentiment.
Market participants were, therefore, sensitive
to reports that some internationally oriented investors were already reducing the share of dollar-denominated assets in their portfolios in favor
of the German mark and other currencies. The
belief spread that the dollar had begun a longawaited decline. Commercial leads and lags, as
well as professional positions, were turned
against the dollar. As the dollar declined and
economic statistics confirmed that U.S. economic growth remained stronger than expected,
some market observers pointed to the additional
impact a drop in the dollar would have on
domestic prices. Although U.S. interest rates
rose modestly during February and March, the
increases were seen as not fully compensating
for the escalation of inflationary expectations.
Thus, the dollar fell steadily through the first
week in March. Its decline of 10 percent against
the German mark was among the largest. On a
trade-weighted average basis the dollar declined
about 7 percent.
In March, market participants began to sense
more restraint in U.S. monetary policy and more
progress in reducing the fiscal deficit than they
had previously anticipated. The narrowly defined monetary aggregate (Ml) had strengthened
relative to its intended growth range. More fundamentally, the preliminary statistics for the first
quarter showed credit demands accelerating rapidly and the overall economy expanding far more
quickly than the Federal Open Market Committee had assumed when it set its monetary targets
for the current year. Senior Federal Reserve
officials expressed concern about the implications of these developments for a sustained expansion. Consequently, as the federal funds rate
continued to firm, market participants no longer
expected the central bank to resist a rate rise. By
late March, U.S. interest rates of all maturities
had increased about 1 percentage point, and on
April 9 the Federal Reserve raised its discount
rate to 9 percent, bringing it more in line with
money market rates. About the same time, the
Congress and the administration were moving
toward agreement on a "down payment" to
reduce the fiscal deficit. Indeed, work on some
of the legislation to cut the deficit $150 billion
over three years was completed before the congressional summer recess.
Largely in response to these developments,
the dollar reversed course in the exchange markets early in March. With real interest rates in
the United States again perceived to be rising,
concerns about financing the current account
deficit receded. Also, earlier predictions of gathering economic strength abroad were disappointed. The immediate outlook was complicated in a
number of important countries by labor disputes
in key industries that draw attention to serious
labor-management conflicts, inflexibility of
work rules, and a variety of domestic political
issues. Thus, the earlier, more positive assessment of the investment climate abroad tended to
erode, and talk of portfolio shifts out of the dollar
gave way to reports of investors returning to
dollar assets.
By early May, economic statistics suggested
that the U.S. economic expansion was remaining
exceptionally vigorous in the second quarter and
that credit demands were reflecting heavy borrowing needs in both the private and public
sectors. With the Federal Reserve then widely
presumed to be willing to let these developments
show through in rising interest rates, expectations solidified that dollar-based rates would
increase substantially further. Banks sought to
lengthen their liabilities so as to lock in the cost
of funds, putting medium-term interest rates especially under pressure. By the end of May, most
dollar-based market rates had risen another full
percentage point. Since most foreign interest
rates held steady during the spring, interest differentials moved further in the dollar's favor.
Meanwhile, concern deepened in some quarters that rising interest rates were increasing
burdens on the heavily indebted developing
Foreign Exchange Operations
countries. Some market participants were also
wary of the possibility that a meeting of Latin
American debtor countries in Cartegena, Colombia, in July would lead to a polarization of the
debt negotiations.
It was in this context that one large American
bank experienced funding difficulties in midMay, following market rumors that it had substantial undisclosed losses on its domestic loans.
Support efforts were organized by other large
banks and by the federal authorities. But market
participants were unsure that the financial strains
could be contained without modification of monetary policy, and they took particular note of a
temporary easing in the federal funds rate. During late May, rumors circulated that deposits
were being withdrawn from a few large U.S.
banks known to have sizable exposures in Latin
America. The dollar eased back as exchange
markets became somewhat unsettled over the
implications of these developments as well as the
prospect of sizable amounts of funds being
moved out of dollar assets. By May 24, rumors
had come to encompass American banks more
generally, and the exchange markets became
extremely disorderly. The U.S. authorities conducted their only intervention operation of the
period that day, selling $135 million equivalent of
German marks to counter the disorder. Trading
conditions did improve thereafter, though the
dollar continued to decline for several more
days.
Early in June the dollar resumed its climb as
some of the concerns of May began to dissipate.
Market professionals came to realize that the
Federal Reserve had been able to provide the
needed liquidity without compromising its monetary targets. Some questions about the adequacy
of U.S. banks' accounting procedures were laid
to rest as the rules on reporting loans to be "nonaccruing" were clarified. Concern over the debt
problem of the developing countries also eased
amid discussion of multiyear debt restructurings
for countries demonstrating the greatest progress
in external adjustment. Another positive factor
was the emergence of a constructive attitude
from the Cartagena meeting.
Later, the demand for dollars intensified as
U.S. capital markets regained their attraction to
foreign investors. A succession of economic sta-
695
tistics suggested that a significant deceleration of
real growth in the United States had yet to occur.
At the same time, statistics on U.S. inflation
were much better than had been expected, implying that interest rate differentials adjusted for
comparative price performance had become
even more favorable to dollar investments.
Moreover, the deficit-reduction legislation nearing passage in the Congress contained a provision to remove a longstanding 30 percent withholding tax on interest earned on U.S.
investments by nonresidents. This legislation,
which was subsequently enacted, prompted talk
that large new foreign inflows of capital would be
attracted to the United States as certain investors who had been subject to the tax gained
greater access to U.S. markets. When the U.S.
bond and stock markets staged a strong rally late
in July, market participants therefore anticipated
substantial foreign interest.
The dollar was bid up quite strongly at the end
of July to reach its highs for the period under
review. The dollar's net advance for the six
months was greatest against the Swiss franc and
the pound sterling, at 10 percent and 8 percent
respectively. Against most other major currencies the dollar rose on balance about 4 to 5
percent, and in trade-weighted terms it increased
4V4 percent.
There were few changes in currency relationships among the other major currencies during
the six months. Indeed, during the latter part of
the period when the dollar was rising, the currencies participating in the joint intervention arrangements of the European Monetary System
(EMS) traded without strain. The authorities in
those countries whose currencies had previously
been under pressure were thereby able to rebuild
their official reserve positions as well as to move
cautiously in the direction of easing domestic
interest rates and relaxing exchange controls. As
a group, the major industrialized countries
abroad sold dollars on balance during the six
months in their intervention operations to support their own currencies. But these intervention
sales were more than offset by interest earnings
and acquisitions of currencies through foreign
borrowings and other transactions, so that the
foreign currency reserves of the major countries
continued to grow.
696
Federal Reserve Bulletin • September 1984
At the beginning of the six-month period, the
only drawing outstanding on credit arrangements
of the U.S. monetary authorities was $10 million
drawn on December 29, 1983, by the Bank of
Jamaica against a U.S. Treasury temporary swap
facility of $50 million. The Bank of Jamaica fully
repaid this amount on March 2 whereupon this
facility expired.
On March 30 the U.S. Treasury announced
that it would participate in an arrangement related to the efforts of the government of Argentina
to put into place an economic adjustment program supported by the International Monetary
Fund (IMF). The Treasury's participation consisted of agreeing to extend temporary swap
credits of up to $300 million to Argentina upon
agreement on an economic adjustment program
between Argentina and the IMF; Argentina
agreed to repay any such drawings on the Treasury from proceeds of IMF drawings. This undertaking was part of a $500 million financing
package that was used by Argentina to pay
certain interest arrears. The $500 million package
consisted of $300 million in credits extended to
Argentina by the governments of Mexico, Venezuela, Brazil, and Colombia, to be repaid upon
Argentina's drawing from the U.S. Treasury;
$100 million additional credits extended by the
eleven commercial banks in the working group
for Argentina; and $100 million provided from
Argentina's resources. The U.S. commitment,
originally made for a 30-day period, was extended at the end of April for another month and
again at the end of May for an additional 15 days.
The Treasury's commitment under this agreement lapsed on June 15.
The Federal Reserve and the Treasury invest
foreign currency balances acquired in the market
as a result of their foreign exchange operations in
a variety of instruments that yield market-related
rates of return and that have a high degree of
quality and liquidity. Under the authority provided by the Monetary Control Act of 1980, the
Federal Reserve had invested $1,424.2 million of
its foreign currency resources in securities issued
by foreign governments as of July 31. In addition, the Treasury held the equivalent of $1,746.8
million in such securities as of the end of July.
In the period from February through July, the
Federal Reserve and the Exchange Stabilization
Fund (ESF) of the Treasury received earnings of
Net profits or losses ( - )
on U.S. Treasury and Federal Reserve
current foreign exchange operations1
Millions of dollars
U.S. Treasury
Federal
Reserve
Period
Valuation profits and
losses on
outstanding assets
and liabilities as of
July 31, 1984
General
account
0
0
0
-17.7
0
1983:3
1983:4
1984:1
1984:2
July 1984
Exchange
Stabilization
Fund
0
-204.8
0
-21.4
0
70.1
0
0
0
0
-1,084.0
-742.5
0
1. Data are on a value-date basis.
$111.8 million and $84.2 million respectively, on
their foreign currency balances. They realized
losses of $17.7 million and $21.4 million respectively on all of their operations in the market. As
of July 31, cumulative bookkeeping, or valuation, losses on outstanding foreign currency balances were $1,084.0 million for the Federal Reserve and $742.5 million for the ESF. (Valuation
gains and losses represent the increase or decrease in the dollar value of outstanding currency
assets and liabilities, using the end-of-period
exchange rates as compared with rates of acquisition.) These valuation losses reflect the fact
that the dollar has appreciated since the foreign
currencies were acquired.
GERMAN
MARK
Through February and early March, the German
mark strengthened against the dollar in response
to substantial investment inflows, only to decline
unevenly through July when these inflows subsequently slowed and then reversed. The capital
inflows early in the period reflected optimism
that the difference in economic performance of
the United States and Germany would substantially narrow. But by spring it was clear that the
U.S. economy remained stronger than expected
and predictions of more rapid expansion in Germany were again disappointed.
At the opening of the period, the near-term
outlook for the German economy and the Ger-
Foreign Exchange Operations
man mark had become more buoyant. The pace
of economic activity had regained momentum
around the turn of the year, stimulated by a
pickup of incoming foreign orders, renewed
spending on plant and equipment, and a rebuilding of inventories in anticipation of a progressive
revival of demand. Inflation remained low and
earlier concerns were receding that the rise in
import prices, reflecting last year's rise of the
dollar against the mark, would generate generalized price pressures.
Meanwhile, the government had made even
more progress than expected in reducing its
fiscal deficit during 1983. The growth of central
bank money had dropped within the Bundesbank's target range by the end of 1983 and was
remaining close to the lower limit of the central
bank's even narrower target of 4 to 6 percent for
1984. With the outlook for sustained, noninflationary growth thus improving, the capital markets in Germany strengthened.
Under these circumstances, the mark was the
currency to benefit most from the shift in international portfolio investment flows that developed
early in the year. Investors were attracted by the
prospect of favorable trends in both asset prices
and the mark's exchange rate, even though interest differentials remained strongly negative by
comparison with the dollar and with most currencies within the European Monetary System.
Long-term capital had begun to flow into Germany in January, reversing the capital outflows that
had been stimulated over much of the preceeding
two years by the prospect of greater growth
opportunities or higher yields abroad. The flows
continued in February, and reports of foreign
buying in the rallying German bond and stock
markets received wide publicity. With Germany's current account expected to remain in substantial surplus for the year, reports of these
investment transactions helped to encourage the
view that the mark was embarked on a longawaited upward trend. The mark's rise gained
additional momentum from statements by public
officials to the effect that the dollar was increasingly vulnerable to a sharp decline. The mark
rose against the dollar to DM 2.5210 by March 7,
13 percent above its low of January and IV/2
percent from levels at the end of January. This
rise occurred even though German interest yields
for most maturities eased, and negative yield
697
differentials compared with dollar investments
widened a full percentage point. As the mark
strengthened, the Bundesbank bought back some
of the dollars sold in earlier intervention operations. In addition, its reserve position in the EMS
improved as other countries in that arrangement
sold marks to slow the advance of the mark
against their own currencies. During February
and March, Germany's foreign currency reserves rose $3.8 billion to $41.0 billion.
After the first week of March, however, the
mark began a decline that was to continue,
except for one major interruption, through the
remainder of the period under review. As interest rates in the United States rose and figures
were released showing that the expected increase in inflation had not yet materialized, market participants came to question whether large
investment flows into Germany would be sustained. Market participants doubted that the
Bundesbank would allow any corresponding rise
in German short-term interest rates, since the
domestic recovery had not yet led to a significant
reduction in unemployment. This perception
deepened in April, when new data showed some
faltering of industrial activity. Thus the earlier
positive evaluations of the relative attractiveness
of mark-denominated investments eroded, and
net portfolio inflows to Germany slowed markedly in March before turning negative in April.
Developments in the German labor market
also contributed to the mark's decline starting
early in April. By mid-month it became clear that
annual wage negotiations between the union and
employers in Germany's important metal working industries were locked in a dispute over the
union's demand for a five-hour reduction in the
standard workweek. Strikes began in May in two
major regions, initiating the most serious work
stoppage in German industry in many years.
Exchange market participants viewed the strike
as important because of potential reductions in
Germany's industrial production and current account performance for the year, as well as the
possible long-term effect on Germany's competitiveness of any substantial concession to the
union's demands. Against this background, trading in German marks became sensitive to news of
the labor negotiations from April onward.
In these circumstances, news that Germany
continued to register sizable trade account sur-
698
Federal Reserve Bulletin • September 1984
pluses, while U.S. monthly trade deficits mounted to record levels, made little impression on the
exchange markets. The mark dropped through
several psychologically important levels, and its
decline drew added impetus from selling by
commercial entities and technically oriented
speculators. By May 10, the mark fell some 10
percent from its March peak to DM 2.8010, less
than 2 percent above the lowest level reached
during the previous January.
The mark's decline against the dollar stalled at
that point as problems of the U.S. and international banking systems became a dominant preoccupation in exchange markets for a time. The
mark was temporarily buoyed by the belief that
the Federal Reserve would modify its monetary
stance to ease financial strains. At the same time,
signs of a modest firming in money market
interest rates in Germany were taken as presaging a possible move toward a tighter monetary
policy by the Bundesbank. Thus, the mark rose
through much of May.
The exchange markets also became nervous in
response to rumors of liquidity problems at several major U.S. banks with sizable loan exposures in developing countries or other problem
loans. On May 24, trading conditions became
extremely disorderly as these rumors began indiscriminately to refer to American banks more
generally. Many traders attempted to withdraw
from dealing in the face of such rumors. As the
German mark jumped some 1 Vi percent in less
than an hour, spreads between bid and asked
quotes widened sharply and transactions became
difficult to execute. In these circumstances the
Desk entered the market to counter disorder,
selling $135 million equivalent of German marks.
These marks were drawn in equal proportion
from the foreign currency balances of the U.S.
Treasury and the Federal Reserve. After the
operation, trading became more normal. The
mark continued its rise at a more subdued pace
through the first days of June, reaching DM
2.6600 on June 5.
The mark then resumed its decline against the
dollar as new estimates indicated that U.S.
growth still overshadowed Germany's growth
performance and as further increases in U.S.
interest rates widened the rate differentials that
were adverse to the mark. The Bundesbank
made clear it was not tightening monetary policy,
even though it raised the discount rate, effective
June 29, x/z percent to Axh percent. The central
bank acted at the same time to expand quotas of
discount credit available to German banks, specified that the change was designed merely to shift
more of its liquidity provision from the Lombard
facility to the discount window, and kept its
Lombard interest rate unchanged at 5.5 percent.
These steps did not lead to any rise of German
money market interest rates, which remained
steady throughout June and July.
In addition, the labor situation continued to
influence the German currency during the summer. As the metalworkers' strike dragged on far
longer than most observers had initially predicted, forecasts of Germany's 1984 growth and
current account performance were revised
downward. Even after settlement was announced late in June, press commentary questioned whether the upward momentum of the
German economy could be recaptured. There
was also uncertainty about the likely effects of
the agreement on productivity in the affected
industries and the extent to which this agreement
might become a standard for settlements in other
sectors of the German economy.
Thus, the mark became vulnerable to renewed
investor enthusiasm for dollar-denominated assets. By late July, the German mark had dropped
below its previous low for the year, falling to DM
2.9205 on July 31 before closing that day at DM
2.9180. At this point the mark was trading 4
percent below its levels at the end of January.
Within the EMS, the mark remained at the top of
the narrow band, but its margin over the other
currencies had been considerably reduced. As
pressures against the other EMS currencies subsided, some participating central banks purchased marks in the market to add to their own
reserves.
Meanwhile, German foreign exchange reserves dropped some $2.5 billion equivalent after
March to $38.4 billion. The change partly reflected dollar sales by the Bundesbank to slow the
decline of its currency against the dollar, as well
as some reduction in Germany's creditor position within the European Monetary System resulting from repayment of mark debt by partner
countries.
Foreign Exchange Operations
JAPANESE
YEN
As the period opened, the Japanese yen was
trading near record levels against European currencies, while showing somewhat less buoyancy
against the dollar. By comparison with Europe,
Japan's economic recovery was moving ahead
more briskly. Its current account surplus, expected to exceed the previous year's $21 billion,
was likely to far surpass any other country's
surplus. These factors had attracted some investment from abroad. But, overall, inflows to Japan
through the current account and through nonresident investments were more than offset by outflows of residents' long-term capital—outflows
that slowed the yen's advance against the dollar.
To some extent these outflows were attracted by
the relatively high interest rates and even more
rapid growth in the United States. In part they
reflected continuing diversification by Japanese
investors of their rapidly growing financial assets. In addition, discussion about liberalizing
the Japanese capital market, internationalizing
the yen, and improving access of foreign firms to
the Japanese capital market added to uncertainties about the immediate outlook for the dollaryen exchange rate.
During February and early March, the yen was
slow to benefit from the shift in sentiment against
the dollar. In contrast to the mark, the yen
remained steady against the dollar until early
March 2. Then it rose abruptly as bidding appeared from both commercial and professional
sources. The yen's advance quickened after market participants sensed that the yen might be
catching up with the earlier rise of the mark. By
March 7, the currency had risen some 6 percent
to ¥220.00 against the dollar, its high for the
period.
After this rise, calls on the Bank of Japan to
cut the discount rate were heard from diverse
quarters. The central bank, however, rejected
these suggestions, arguing that the yen's recovery was not yet sufficiently well established and
that domestic as well as international developments should be taken into account. As it was,
monetary policy was generally viewed as accommodative, with the Bank of Japan forecasting
monetary growth to continue at about an 8
percent annual rate. Also, the Bank of Japan
699
raised the ceiling for net new domestic lending by
Japanese banks, as the domestic demand for
funds continued to grow apace. Although the
central bank's discount rate remained unchanged
during the period, the banks lowered the longterm prime rate from 8.2 percent to 7.9 percent at
the end of March.
From March onward, interest differentials favoring dollar over yen assets widened steadily
because short-term interest rates in Japan remained little changed or even declined slightly.
At first, the yen held steady against the dollar,
and thereby regained some ground against European currencies, as optimism about the Japanese
economy was reinforced by fresh evidence of
strengthening growth and a widening current
account surplus. Domestic demand picked up
and business confidence improved. With the
prospect of rising profits for Japanese companies, prices on the Tokyo stock exchange were
still climbing and reports circulated of increased
foreign demand for Japanese equities.
But the yen started to decline against the dollar
late in April. Soon afterward it began falling
against other currencies as well, so that the yen
did not return to the peak levels against the mark
registered earlier in the year. Late in April the
Tokyo stock market lost its upward momentum,
and stock prices started to erase some of the 11
percent gain of the first four months of the year.
Talk of capital outflows then intensified.
In addition, attention had been directed to new
discussions between the Japanese Ministry of
Finance and the U.S. Treasury about liberalizing
the Japanese capital market and internationalizing the yen. As one move toward liberalization,
the Japanese authorities eliminated, effective
April 1, the requirement that corporations identify underlying commercial transactions before
entering a forward contract, and also made other
changes in the administration of the foreign exchange market during the spring. On May 29, the
Japanese Minister of Finance and the U.S. Secretary of the Treasury released a report containing a broad range of policy changes expected to
affect the exchange rate over time. (See "Summary of Report on Yen/Dollar Exchange Rates,"
on the following page.) The report stated that the
measures " . . . will help enable the yen to reflect
more fully its underlying strength."
700
Federal Reserve Bulletin • September 1984
Summary of Report on Yen/Dollar Exchange Rate Issues
The Japanese Minister of Finance and the U.S. Secretary of the
Treasury released on May 29 a report containing a broad range of
policy changes. The report contained announcements by Japanese
authorities of policy change in three broad areas: the Euro yen market,
the operation of Japan's domestic capital market, and the access of
foreign financial institutions to the Japanese capital market. In the
Euroyen market, perhaps the most important area for the internationalization of the yen, the authorities announced the basic commitment
and decisions necessary to allow for the development of Euroyen
bond and banking markets, where non-Japanese can freely invest in or
borrow a range of yen-denominated instruments.
Specifically, in the Euroyen bond market, the announcement provided for the first time for the issue by non-Japanese corporations of
yen-denominated bonds. Foreign issuers will face no restrictions on
the number or size of issues and will not be required to use the
Samurai market (Japanese domestic market for foreign bonds) as a
prerequisite. In the Euroyen banking market, the announcements
include authorization for foreign and Japanese banks to issue shortterm negotiable Euroyen certificates of deposit from their offices
outside Japan. On the lending side, Japanese and non-Japanese banks
will be free to extend Euroyen loans to nonresidents of Japan.
Substantial changes in domestic financial market policies were also
announced by the Ministry of Finance. These include the removal of
nonprudential restrictions on overseas yen lending from Japan; the
elimination of limits on oversold spot foreign exchange positions—socalled swap limits; relaxation of regulations on domestic certificates of
deposit; permitting banks to sell new types of large-denomination
deposit instruments with market-determined interest rates; a plan for
establishment of a yen-denominated bankers acceptance market in
Japan; and allowing qualified Japanese branches of foreign banks to
trade Japanese government securities in the secondary market.
In the area of access by foreign financial institutions to the Japanese
market, foreign banks will for the first time be allowed to engage in the
trust banking business; the Tokyo Stock Exchange has begun to study
ways to provide membership opportunities to foreign firms; and the
Japanese authorities expressed their commitment to permit greater
participation of foreign institutions in discussions pertaining to development of and in the implementation of financial policies.
During the remainder of the period, large-scale
liquidation of nonresidents' holdings of Japanese
securities and heavy Japanese investment in foreign securities persisted. Overall, long-term capital outflows jumped well in excess of the underlying current account surplus—to a record $4.4
billion in April and to more than $6 billion by
June. Under these circumstances, the yen steadily declined against the dollar, easing to a low for
the period of ¥247.3 on July 23. Trading at the
close of ¥246.9, the yen had declined 5 percent
against the dollar and IV2 percent against the
mark from levels at the end of January. The Bank
of Japan intervened during the second half of the
period to moderate the downward pressure on
the yen at times when trading became especially
volatile. But over the six-month period, Japan's
foreign exchange reserves showed little change,
since declines due to intervention were offset by
interest receipts.
appreciation of the franc if doing so would require them to deviate from their monetary policy
objective of controlling inflation. Accordingly,
exchange market participants had established
positions in Swiss francs against marks and,
thereby, had helped the franc to hold up better
against the dollar just before the period.
During February and early March, however,
the Swiss franc did not benefit as much as the
mark from the shift in investor preferences then
taking place, and the franc failed to keep up with
the rise of EMS currencies against the dollar.
The outlook for economic growth had not improved as much as it had for Germany and,
though inflation was running at a comparable
rate, interest rates in Switzerland remained more
than 2 percentage points lower than those on
mark assets. Encouraged both by the interest
rate differentials and by an easing of official
regulations at the beginning of 1984, foreign bond
offerings in the Swiss market picked up. The
conversion of these borrowings into foreign currencies put pressure on the Swiss franc. At the
same time, market professionals moved to reverse positions in Swiss francs against marks
established earlier. Thus, the Swiss franc, while
climbing IVA percent against the dollar to its high
for the period of SF2.0940 on March 7, fell nearly
4 percent to nearly SF0.83 in terms of the German mark.
Swiss
FRANC
At the beginning of the period under review, the
Swiss franc was trading steadily around
SF2.2455 in terms of the dollar, slightly above
seven-year lows reached in early January.
Against the mark, however, the franc was strong
by historical standards and near the SF0.80 level,
which, in the past, had prompted official concern
over the competitiveness of Swiss exports. Yet,
this time, market participants concluded that the
authorities would not act to prevent a further
From March onward, the Swiss franc moved
more in line with other European currencies as it
fell against the dollar. Swiss interest rates rose
somewhat. But, with U.S. rates also rising, ad-
Foreign Exchange Operations
verse interest differentials compared with dollar
assets widened to more than 7 percentage points
for the three-month maturity. Capital outflows
therefore continued, reflecting borrowings by
Japanese corporations in particular. Thus the
Swiss franc declined against the dollar to
SF2.4760 by the end of July, a fall of 9Vi percent
for the six-month period. Against the mark, the
franc dropped about 3 percent to around SF0.85
in the final two months of the period, bringing the
decline for the six-month interval to 6 percent.
By late June, settlement of a major strike in
Germany eliminated a factor that had tended to
favor the Swiss franc relative to the mark. In
addition, the Swiss franc did not benefit as did
the mark from large-scale central bank intervention purchases.
The Swiss authorities did not intervene during
the period. Fluctuations in Switzerland's foreign
currency reserves reflected foreign currency
swap operations to adjust liquidity in the Swiss
banking system.
STERLING
Between February and July, sterling extended
the decline that had taken place with only few
interruptions since early 1981. After staging a
short-lived advance as the dollar generally eased,
in February and early March sterling dropped
during the period IVi percent against the dollar
and 4 percent according to the Bank of England's
trade-weighted index. During the period, Britain's economy was showing distinct signs of
improvement, but several questions remained
about the immediate outlook. Economic expansion was far more established in the United
Kingdom than in most other European countries,
but output growth was not yet sufficient to
reverse a rise in unemployment. Inflation had
stabilized at about 5 percent, but prices and cost
pressures were even more subdued in some other
countries so that Britain's competitive position
failed to show further improvement. The threeyear weakening in Britain's non-oil trade position slowed as demand began to pick up in major
export markets, but foreign exchange market
participants continued to perceive Britain's overall external position to be vulnerable to further
declines in oil prices. Thus, trading in the pound
701
was frequently influenced by developments in
the oil market, as well as by changes in yields on
short-term investments in sterling relative to
those in other currencies—especially the dollar.
During February, both interest rate and oil
market factors tended to favor sterling. The
government had continued to aim at moderately
restrictive fiscal and monetary targets, but both
public sector borrowing and monetary growth
had been running somewhat over their targets for
the fiscal year. At least until these economic
indicators had come closer to their intended
ranges, market participants expected the pound
would be supported by relatively attractive
short-term interest rates. British interest rates
were substantially higher than those in most
major markets and close to parity with those
available for U.S. dollar assets. In addition,
intensifying military conflict in the Persian Gulf
threatened at times to interrupt oil supplies, and
the resulting upward pressure on crude oil prices
was expected to improve Britain's current account position. Thus, sterling rose some 6V2
percent in terms of the dollar during the month to
a high of $1.4955 on February 29. The currency
was not, however, identified in market talk as
one of those benefiting from reported shifts in
portfolio capital out of dollar investments. Overall, the British currency rose nearly 2 percent on
average to close the month at 83.3 in terms of the
Bank of England's trade-weighted index, its
highest level during the period. At the same time,
Britain's foreign currency reserves rose $0.6
billion to $9.1 billion.
After the end of February, sterling began to
decline against the dollar and other currencies.
Unemployment had risen steeply in January and
February, and there were fears—borne out in
early April—that industrial production would
turn down as a result of a miners' strike. Expectations grew that the British authorities would be
under pressure to lower interest rates. Then,
publication of statistics showing that sterling M3
had dropped within its target range in the first
two months of the year led market participants to
believe that the authorities were in a position to
let interest rates ease in order to stem the rise in
unemployment.
Sterling's decline was interrupted briefly in the
aftermath of the government's announcement on
March 13 of its budget and monetary targets for
702
Federal Reserve Bulletin • September 1984
1984-85. Market participants generally praised
the budget, which projected a decline in the
public sector borrowing target and a reduced rate
of monetary expansion, along with some corporate tax reductions and other tax support for
sterling as the period went on. Even with reforms, sterling rose as foreign buying of British
bonds and equities reportedly contributed to
strong rallies in London's capital markets.
But the rise in the exchange rate was soon
erased when market attention reverted to the
developing pattern of interest rates. The Bank of
England endorsed a decline of VI percentage
point in the general level of short-term interest
rates by cutting its dealing rates in two steps
around mid-March. Combined with the rise of
dollar interest rates then under way, this caused
short-term differentials vis-a-vis the dollar to
move some 2 percentage points and to become
decidedly negative for sterling by late March.
The world oil market situation also provided
less support for sterling as the period went on.
Even with the continued fighting in the Persian
Gulf, market participants became less convinced
of the potential for higher oil prices in light of
apparently ample supplies. In these circumstances, an occasional flareup of Middle East
tensions no longer caused the same surge of
sterling buying as before, and market professionals, who as a group had been willing to hold long
sterling positions for a brief period in February,
reestablished short positions.
Domestic labor problems also contributed to
sterling's weakness at times. The strike by Britain's coal miners was not a particularly serious
concern in the exchange markets at its inception
in March, in view of the limited support given the
miners' position by unions in other industries
and the ample coal stocks available to supply the
country's needs. But the strike began to be
viewed more negatively as time went on. Sterling
exchange rates thus became more sensitive to
news of the miners' strike and other labor disputes later in the period.
During May and June, negative interest differentials relative to the dollar widened further as
U.S. interest rates rose. Market participants
became increasingly convinced that, if faced with
the choice, British authorities would let sterling
depreciate rather than put further economic expansion at risk by raising domestic interest rates
substantially. This view was consistent with the
perception that, at current exchange rates, production costs in the United Kingdom were still
high relative to those on the Continent, and that
much of the growth in consumption during this
recovery had been met by imports. It persisted
even after the Bank of England endorsed a rise of
VI percentage point in short-term market interest
rates in early May. It was reinforced when, as
the Bank of England announced a technical
adjustment of the structure of its dealing rates in
late June, the central bank indicated that there
was no need on monetary grounds for a general
increase in interest rates.
Under these conditions, which were aggravated by a national dock strike, sterling's drop
accelerated in early July, until the pound hit an
all-time low of $1.2975 and an eight-year low in
effective terms. This drop quickly led to a sharp
rise in interest rates in the London market that
ended with a cumulative 23/4-percentage point
increase in the Bank of England's money market
dealing rates and the major banks' base lending
rates. These increases restored sterling's shortterm interest rate advantage relative to the dollar. Subsequently, helped by settlement of the
dock strike, sterling steadied to fluctuate along
with other currencies against the dollar. Although it closed July at a new low against the
dollar of $1.2970, it had recovered nearly 2
percent in effective terms. During the five
months to the end of July, Britain's foreign
currency reserves declined almost continuously,
dropping $2.3 billion to $15.4 billion by the end of
the period.
EUROPEAN
MONETARY
SYSTEM
During the period under review, the alignment of
central exchange rates within the European
Monetary System remained relatively free from
strain. Economic divergencies among the participating countries were reduced as all seven countries continued to implement policies aimed at
reducing fiscal deficits, strengthening current
account positions, and holding down inflation.
Increases in wages and consumer prices had
decelerated during 1983 in France, Italy, Denmark, Belgium, and Ireland, bringing inflation in
these countries somewhat closer to—although
Foreign Exchange Operations
still much higher than—the low rates prevailing
in Germany and the Netherlands. The large
current account deficits of France, Italy, Belgium, Denmark, and Ireland had all been substantially cut—and in the case of Italy, reversed—while the German and Dutch surpluses
remained rather stable by comparison.
The joint float came under some pressure in
the early part of the period as the dollar fell from
its January highs. Flows out of dollar assets were
attracted to the German mark to a far greater
extent than to any other EMS currencies—reflecting sanguine assessments of the investment
climate in Germany as well as the wider opportunities for inflows afforded by its relatively open
financial system. Thus, by the beginning of February, the mark was trading at or near its upper
limit against the Belgian franc, after having
quickly risen to the top of the EMS narrow band.
All of the other EMS currencies were also clustered near the mark at the top of the narrow
band, except for the Italian lira, which traded
about V/i percent above the band within the
wider limits established for their currency.
The German mark continued to strengthen
through early March against all other EMS currencies. The Belgian franc became pinned at its
lower EMS limit against the mark. The Belgian
central bank countered speculative pressure
against its currency partly by raising its official
lending rates 1 percentage point, effective February 16. The currencies that had shared the top of
the narrow EMS band with the mark at the
beginning of the period dispersed through the top
half of the band, and the Italian lira moved down
closer to the narrow band.
Intervention support was provided to several
currencies. The central banks of France, Belgium, and Ireland financed the bulk of their
official currency sales from the proceeds of external borrowings or other sources so that their
foreign exchange reserves were little changed or
even rose during the two months. Belgium also
drew on the very short-term facility available
through the European Monetary Cooperation
Fund (EMCF). In the case of Italy, however,
official sales of marks and dollars were partly
reflected in a drop of foreign currency reserves of
$0.7 billion for February and March.
Pressures within the float ebbed after the first
week of March, as the dollar began rising again
703
and inflows into the German mark subsided. The
mark eased against its partner currencies and, at
times, the Dutch guilder alternated with the mark
at the top of the narrow band. In addition, the
spread between the topmost currency and the
Belgian franc at the bottom narrowed to less than
1 percent by the end of July.
With the waning of tensions in the EMS, the
French and Italian central banks were able to
purchase substantial amounts of foreign currencies in the market to rebuild their reserve positions. Over the six-month period as a whole,
foreign exchange reserves of these two countries
rose on balance—by $2.4 billion equivalent for
France and by $0.6 billion equivalent for Italy—
to close at $20.1 billion and $18.5 billion respectively. The Belgian central bank was able to
cease its intervention sales of foreign currency
and to use the proceeds of further external borrowings to reduce its liabilities to the EMCF.
Although Belgium's foreign currency reserves
declined $0.5 billion during the six months to
$3.1 billion by the end of July, the decline was
considerably smaller than its repayments of indebtedness to the EMCF over the six-month
period.
The authorities of France, Italy, and Belgium
also took advantage of the easing of exchangemarket pressures against their currencies to ease
interest rates or, in the case of the first two
countries, to ease foreign exchange controls.
Money market interest rates in the three countries declined Vi to 1 percentage point in the last
four months of the period. Italy's Trade Ministry
reduced the extent to which Italian exporters are
required to conduct their trade financing in foreign currencies. In France, one of the first official actions of the new cabinet that took power in
July was to relax restrictions on the use of credit
cards abroad, an action that had been part of the
March 1983 austerity program.
By the end of July, the EMS currencies had
fallen between 13 and 16 percent from their
March highs against the dollar, but were only 2 to
4 percent lower over the six-month period as a
whole. Nevertheless they closed at levels that
represented, in most cases, all-time lows against
the dollar. These wide movements against the
dollar contrasted with their steadiness against
one another. By the end of the period, the
exchange rate structure that had been adopted in
704
Federal Reserve Bulletin • September 1984
March 1983 had lasted longer than any other in
the six-year history of the EMS.
CANADIAN
DOLLAR
By the opening of the six-month period under
review, the Canadian dollar had settled into a
trading range around Can.$1,245 ($0,803), drawing support from surpluses on Canada's trade
and current accounts. But sentiment toward the
Canadian dollar deteriorated early in February
when published figures revealed that, despite an
impressive recovery during 1983, the Canadian
economy had not yet returned to satisfactory
levels of production, and employment and investment remained sluggish. Looking ahead, observers questioned whether exports, a major
contributor to Canada's growth last year, would
remain so buoyant if the economic expansion in
the United States were to moderate. They wondered also if credit demands would be as strong
in Canada as they appeared to be in the United
States. Thus, market participants focused on the
monetary authorities' potential policy conflict
between lending support to further economic
growth and incurring the inflationary consequences of a weakening in the exchange rate.
Against this background, the currency showed
vulnerability to selling pressure when Canadian
short-term interest rates slipped below comparable U.S. rates.
Public officials denied that they would welcome a sharp drop in the Canadian dollar, and
the central bank's Annual Report pointed to the
dangers of currency depreciation. The central
bank asserted that in the event of sharp downward movements of the Canadian dollar, "the
successful pursuit in Canada of increasing price
stability requires that Canadian policy try to
moderate the exchange rate movements and to
offset their inflationary effects." But, for several
months, market participants perceived the Canadian authorities to be reluctant to allow interest
rates to rise along with U.S. rates.
The Canadian currency was also subjected to
other pressures during the spring. Market participants thought that Canadian subsidiaries of some
U.S. oil companies would be sold and the proceeds converted into U.S. dollars to finance
large takeover bids involving the parents. Commercial leads and lags shifted against the Canadian dollar. At the same time, market professionals
sought to establish or increase short positions in
the currency adding further to the pressure.
Against this background, the Canadian dollar
dropped off sharply in several waves of selling
from March through July. The pressures were
particularly intense in June and early July, when
a change in the leadership of the governing party
and the prospect of national elections in September stimulated renewed debate on interest and
exchange rate policy. During this episode the
Canadian currency dropped to an all-time low of
Can.$1.3368 ($0.7481). The Bank of Canada intervened in the exchanges to resist this decline.
Meanwhile, Canadian money market interest
rates ratcheted upward and the Bank of Canada's
bank rate rose to a peak of 13.26 percent in the
middle of July, even after U.S. money market
rates had started to ease. These movements
pushed interest rates on Canadian dollar assets
significantly above those on U.S. dollar assets
and buoyed the currency. Market sentiment was
also encouraged by the waning of public debate
over exchange rate and interest rate policy. As
market participants' earlier concerns that the
currency would depreciate lifted, the Canadian
dollar recovered some of its earlier decline. It
closed the period at Can.$1.3094, down 5 percent
on balance against the dollar over the period.
The Canadian authorities drew heavily on their
reserve position to finance intervention to support the Canadian dollar from February to June,
but they were able to buy back reserves in July.
Their foreign currency reserves were supplemented as needed by borrowings of U.S. dollars
on credit lines with Canadian and foreign banks,
totaling $1.4 billion, as well as by net borrowings
in other foreign currencies equivalent to $0.6
billion. Canada's foreign currency reserves nevertheless declined from the end of January to the
end of April, falling $1.1 billion to $1.7 billion
before returning to $2.7 billion by the close of the
period.
705
Industrial Production
Released for publication
September
14
Industrial production increased an estimated 0.2
percent in August following rises of 0.9 percent
in both June and July. Output growth remained
vigorous in equipment industries, but production
of autos and steel was down. At 166.2 percent of
the 1967 average, the August index was 9.5
percent higher than a year earlier.
1967=100
All series are seasonally adjusted and are plotted on a ratio scale.
In market groupings, output of consumer
goods declined 0.4 percent in August, largely
reflecting a decline in assemblies of autos and
lightweight trucks. Auto assemblies declined to
an annual rate of 7.7 million units, compared
with the July rate of 7.9 million units; tight
supply of parts of adequate quality reportedly
limited assemblies in August. Output of goods
for the home, including appliances, and of non1967 = 100
Auto sales and stocks include imports. Latest figures: August.
706
Federal Reserve Bulletin • September 1984
1967 = 100
Percentage change from preceding month
1984
1984
Grouping
July
Aug.
Apr.
May
June
July
Aug.
.2
Percentage
change,
Aug. 1983
to Aug.
1984
Major market groupings
Total industrial production
165.8
166.2
.8
.4
.9
.9
Products, total
Final products
Consumer goods . . . .
Durable
Nondurable
Business equipment .
Defense and space ..
Intermediate products .
Construction supplies
Materials
166.6
164.7
163.9
164.8
163.6
184.1
135.1
173.7
161.4
164.4
167.0
165.0
163.2
163.2
163.3
186.1
136.1
174.2
161.7
164.9
.9
1.0
.7
-.6
1.3
.8
2.4
.5
.3
.7
.5
.6
.2
-.5
.4
1.7
-.1
.4
-.1
.3
1.1
1.2
.6
1.2
.4
2.4
.7
.9
.9
.6
.9
1.0
.7
.9
.7
1.8
.8
.3
.3
.9
.2
.2
-.4
-1.0
-.2
1.1
.7
.3
.2
.3
9.0
9.5
4.4
5.8
3.9
18.8
13.2
7.4
8.5
10.2
1.0
1.5
.5
2.1
-1.1
.2
.2
.2
-.3
.5
9.7
13.5
5.4
11.2
2.2
9.5
Major industry groupings
Manufacturing
Durable
Nondurable
Mining
Utilities
167.3
157.3
181.8
129.5
182.3
167.6
157.6
182.2
129.1
183.3
.8
.8
.8
-.4
1.5
.5
.5
.4
1.4
-.2
.9
1.0
.6
1.4
1.2
NOTE. Indexes are seasonally adjusted.
durable consumer goods declined slightly in August. Production of equipment—for both business and defense—continued to advance
strongly, with sharp gains in the output of transit,
commercial, and manufacturing equipment. Output of construction and business supplies edged
up.
Output of durable materials rose 0.4 percent,
production of nondurable materials increased 0.5
percent, and energy materials edged down 0.2
percent in August. Among durable materials,
equipment parts again increased sharply; howev-
er, declines in steel reduced the production of
basic metals an estimated 3 percent.
In industry groupings, manufacturing output
was up 0.2 percent in August. Gains in machinery industries, fabricated metals, and instruments were largely offset by reduced production
of metals, motor vehicles, and some other industries. Mining output was reduced 0.3 percent due
in part to a decline in coal production from the
very high July level. Production by utilities increased 0.5 percent.
707
Announcements
STATEMENT
ON PRICED
SERVICES
The Federal Reserve Board has approved the
two accompanying policy papers regarding the
Federal Reserve System's role in the nation's
payment mechanism and the System's policies
and procedures designed to carry out provisions
of the Monetary Control Act with respect to
services to depository institutions.
One paper, entitled " T h e Federal Reserve in
the Payment S y s t e m , " sets forth the rationale for
the Federal Reserve's participation in the payment mechanism, describes the System's procedures for evaluating Federal Reserve priced
services to depository institutions, and states the
System's objectives, including cost recovery, for
the pricing of such services as directed by the
Monetary Control Act.
The other paper, "Standards Related to Priced
Services Activities of the Federal Reserve
Banks," is concerned with System safeguards
for avoiding any internal conflict of interest
between the exercise of the Federal Reserve's
responsibilities for the provision of priced services to depository institutions and its other
principal responsibilities in the fields of monetary policy, bank supervision, and lending to
depository institutions.
The primary responsibility for assuring that
the standards are applied is entrusted to the
management of each Reserve Bank. The Board
exercises oversight over standards for provision
of priced services through review and approval
by the Board of changes in the level of pricing
and services, and through frequent on-site reviews by Board staff of Reserve Bank activities.
In addition, the Board specified in approving its
policy statement that the Board member serving
as chairman of the Board's Federal Reserve
Bank Activities Committee is responsible for
overseeing investigation and responses to complaints in this area. Vice Chairman Martin is the
current chairman of this committee and inquiries
may be directed to his attention.
THE FEDERAL RESERVE
IN THE PAYMENT SYSTEM
This paper defines the mission and role of the Federal
Reserve in the payment system. The objective of the
paper is to clarify the Federal Reserve's purpose and
role in the payment system in order to encourage
closer cooperation among all participants in improving
the payment system and to facilitate the business
planning of users and providers of payment mechanism services. The paper also outlines the procedure
the Federal Reserve will use in reviewing its services.
In summary, the mission of the Federal Reserve in
providing payment services is to promote the integrity
and efficiency of the payment mechanism and to
ensure the provision of payment services to all depository institutions on an equitable basis. Given the size,
speed, and interdependencies of payments, this mission is, and will likely continue to be, even more
important than it was when the Federal Reserve was
established in 1913.
Role of the Federal
Reserve
Background. For 70 years, active involvement by the
Federal Reserve in payment processing has been an
integral part of the development of the nation's financial system. The Congress, responding in part to the
breakdown of the check collection system in the early
1900s, established the Federal Reserve in 1913. At that
time the Congress envisioned that the Federal Reserve
would play a dual role as an operator and as a regulator
of the payment mechanism. The Congress has, as
recently as 1980, reaffirmed its commitment to this
dual role for the Federal Reserve.
The Federal Reserve has a wide-ranging role in the
payment system. Reserve Banks process about 35
percent of the checks written in this country and
provide a nationwide network for the collection of
items ineligible for processing through normal check
collection channels, such as matured coupons, bonds,
and bankers acceptances. The Federal Reserve assisted in developing the automated clearinghouse (ACH)
system and now provides a nationwide electronic
ACH network. Depository institutions transfer billions
of dollars in payments each day over the Federal
Reserve's nationwide wire transfer system (Fedwire).
The Federal Reserve also operates a book-entry secu-
708
Federal Reserve Bulletin • September 1984
rities service for the safekeeping and transfer of U.S.
government and agency securities. Finally, through its
nationwide network of account relationships, the Federal Reserve provides net settlement for a variety of
clearing arrangements.
This participatory role has served the United States
well—contributing directly and indirectly to widespread public confidence in a payment system that is
quick, sure, and efficient. The Federal Reserve's participatory role is well-suited to the structure of the
U.S. financial industry. This country has a highly
fractionalized banking system spread over wide areas
with different types of institutions—commercial
banks, savings institutions, and credit unions—that
have different payments needs. No one private banking organization holds more than 4 percent of total
deposits or offers deposit services in all regions.
If and when generalized structural changes such as
interstate banking are authorized, the underlying public policy rationale for a Federal Reserve operational
presence in the payment mechanism will continue to
be as important a consideration as it is today. Then, as
now, the Federal Reserve can be expected to bring to
payment markets an overall concern for safety and
soundness, promotion of operating efficiency, and
equitable access. Indeed, those considerations relating
to integrity, efficiency, and access to the payment
mechanism will remain at the core of the Federal
Reserve's role and responsibilities regarding the operation of the payment mechanism.
Integrity of the Payment
System
A reliable payment system is crucial to the economic
growth and stability of the nation. The smooth functioning of markets for virtually every good and service
is dependent upon the smooth functioning of banking
and financial markets, which in turn is dependent upon
the integrity of the nation's payment mechanism.
History tells us—all too vividly—that fragility of a
country's payment system can precipitate or intensify
a general economic crisis. The breakdown of the
payment machinery in the United States during the
panic of 1907—which helped to precipitate the creation of the Federal Reserve System—is a case in
point. More recently, the 1974 failure of a relatively
small German financial institution, Bankhouse I.D.,
Herstatt, and the consequent uncertainty regarding
payments through private clearing networks, temporarily caused substantial disruption in the U.S. payment system. This clearly demonstrated that financial
failures can have a dramatic rippling effect, via the
payment system, to financial institutions in all parts of
the world.
The value of funds transferred is so large that no
private concern is perceived as able adequately to
ensure the integrity and reliability of the system. The
Federal Reserve's direct and ongoing participation in
the operation of the payment mechanism enhances the
integrity and reliability of the system. For example,
the Federal Reserve's final irrevocable Fedwire transfer service reduces the risk that failure of one institution could be rapidly transmitted to other institutions.
The current effort to control intraday risk on largedollar payment networks is another example of a
Federal Reserve initiative, in conjunction with the
private sector, to enhance the integrity of the payment
system.
Efficiency of the Payment
System
Federal Reserve involvement in the payment system
promotes efficiency for a variety of reasons.
The Federal Reserve has a public interest motivation in seeking to stimulate improvements in the
efficiency of the payment mechanism. The Federal
Reserve has worked closely with other providers of
payment mechanism services to develop and utilize
advancements in technology and procedures. Because
of its day-to-day operating presence in the payment
mechanism, it has the know-how to contribute to such
advancements as well as the ability to help promote
their implementation. This is particularly true in the
case of significant payment mechanism advancements
that involve substantial resources, such as the ACH.
Federal Reserve involvement may also be particularly
appropriate for advancements that require widespread
cooperation among depository institutions (for example, introduction and implementation of MICR encoding of checks). Moreover, Federal Reserve involvement as a neutral and trusted intermediary may
facilitate acceptance of innovations that improve the
efficiency of the payment mechanism. Additional efficiencies result from the scope of the Federal Reserve's
participation in the payment mechanism.
As the Congress anticipated in the Monetary Control Act of 1980, competition between the Federal
Reserve and other providers of payment services has
resulted in a more efficient payment system. Both the
Federal Reserve and other service suppliers have been
prompted by competition during the last three years to
trim the cost of processing payments and to improve
the quality of the services offered.
It is recognized that further gains in payment efficiency are most likely to come from the application of
advances in electronic technology. These gains will
become more widespread as the new technology becomes available to all depository institutions regard-
Announcements
less of size or location. An impediment to the conversion of paper-based payments to electronic payments,
however, is the significant float advantage enjoyed by
some initiators of paper-based payments. To eliminate
part of this advantage and thus help spur the shift to
electronic payments, the Federal Reserve has during
the past two years accelerated the collection of
checks, including checks drawn on institutions at
relatively remote locations. As a result of these efforts,
more than $3 billion in checks daily are now being
collected and paid one day quicker than was the case
previously.
Provision of Payment Services
to All Depository
Institutions
Federal Reserve payment services are available to all
depository institutions, including smaller institutions
in remote locations that other providers might not
choose to serve. Under the Monetary Control Act, in
making payment services available to depository institutions, the Federal Reserve is to give due regard to
the provision of an adequate level of services nationwide. Since implementation of the act, the Reserve
Banks have opened access to Federal Reserve services to nonmember banks, mutual savings banks,
savings and loan associations, and credit unions. Furthermore, the Reserve Banks currently handle paper
and electronic items that are destined for more than
20,000 depository institutions.
The Federal Reserve also stands ready to provide
payment mechanism services to troubled depository
institutions that other providers of payment services
may not serve because of the risks involved. This
helps to ensure that the inability of a depository
institution to make or process payments will not
trigger its insolvency and that the institution's problems can be resolved in an orderly fashion with a
minimum of disruptive effects.
Fiscal Agency
Functions
In addition to the payment services provided to depository institutions, the Federal Reserve, as fiscal agent,
provides a variety of services on behalf of the U.S.
Treasury and other government agencies. These services include the creation, safekeeping, and transfer of
book-entry records evidencing ownership of the public
debt and the processing of government payments.
To the extent that the facilities and expertise required to provide these services can be used to produce other similar services for depository institutions,
production efficiencies result. Aiso, paper and electronic payment services are supplied to the Treasury
709
and other government agencies at lower costs than
would be possible if there were no opportunities for
the Federal Reserve also to offer these services to
depository institutions.
Criteria for Federal Reserve
Services
In offering payment services, the Federal Reserve
must satisfy the cost recovery objective of the Monetary Control Act: in the long run, aggregate revenues
should match costs. The Federal Reserve is currently
achieving this objective.
In addition to the aggregate cost recovery objective
specified in the Monetary Control Act, the pricing
principles adopted by the Board of Governors in 1980
added the more stringent objective of full cost recovery (including all operating and float costs and imputed
taxes and return on capital) for each service line.1
Based on more than two years of experience with the
provision of priced services, this internal objective of
cost recovery at each service line has been elaborated
to provide that revenues for each service line must
cover all operating costs, float costs, and certain
imputed costs such as the cost of interest on short- and
long-term debt, as well as to make some contribution
to the pre-tax return on equity. Thus, each service line
must be at least marginally "profitable" and all service
lines combined must, in the aggregate, cover all costs,
float costs, and the overall private sector adjustment
factor (PSAF). At present, check collection, cash
services, wire transfer and net settlement, and the
book-entry securities service lines are meeting this
secondary cost recovery objective. The commercial
ACH service line is also meeting this objective, after
taking into account the planned subsidy. Only the
definitive securities safekeeping and noncash collection service line is not presently meeting this objective.
Federal Reserve objectives are established in terms
of cost recovery rather than targeted volume. Circumstances might materialize that could jeopardize the
Federal Reserve's ability to meet its cost recovery
objectives. Such circumstances include changing technology and consolidation of depository institutions. If
a service that is experiencing such developments can
be made more responsive to the market, it would
continue to be offered. If it becomes clear, however,
that the service simply cannot be expected to meet
cost recovery objectives, the Federal Reserve would
reassess the appropriateness of continuing to provide
the service after taking into account its other objec-
1. See the appendix for details on calculation of costs and fees.
710
Federal Reserve Bulletin • September 1984
tives, including the requirement of providing equitable
access and an adequate level of services nationwide.
For example, several Reserve Banks have stopped
offering the cash transportation service in areas where
an adequate level of this service is provided by the
private sector.
Failure to meet cost recovery objectives may also
result from an aggressive pricing policy pursued by
other service providers. Because the Monetary Control Act directs the Federal Reserve to give due regard
to competitive factors, a decision would have to be
made whether the public benefits of continuing to offer
the service justify the shortfall. The Federal Reserve
might also continue to provide a service that did not
meet cost recovery objectives if the revenue shortfall
was caused by some temporary situation that could be
corrected. In any event, any decision to continue to
provide a service that could not reasonably be expected to meet these objectives would be made by the
Federal Reserve Board only after soliciting public
comment and only in circumstances in which there
were clear public benefits associated with such a
course of action. Similarly, any decision to withdraw
from a particular service line would have to be undertaken in an orderly way, giving due regard to the
transition problems associated with the discontinuation of services.
The Federal Reserve's operational presence in the
payment system can be expected to change as the
payment system evolves. Technological developments
are likely to be the most important influence, but
changes also can be expected from increased interstate
banking, the creative efforts of individual depository
institutions, the entry of new participants in the payment system, and developments in law and regulation
accommodating these and other changes.
As the Federal Reserve introduces new services or
major service enhancements in the future, all of the
following criteria must be met:
1. The Federal Reserve must expect to achieve full
recovery of costs over the long run.
2. The Federal Reserve must expect its provision of
the service to yield a clear public benefit, including,
for example, promoting the integrity of the payment
mechanism, improving the effectiveness of financial
markets, reducing the risk associated with payments
and securities transfer services, improving the efficiency of the payment mechanism, or reducing the use
of real resources, such as through the introduction of
new technology.
3. The service should be one that other providers
alone cannot be expected to provide with reasonable
effectiveness, scope, and equity. For example, it may
be necessary for the Federal Reserve to provide a
payment mechanism service to ensure that an adequate level of the service is provided nationwide or to
avoid undue delay in the development and implementation of the service.
The Federal Reserve recognizes that its unique
position carries with it unique responsibilities, including a willingness to cooperate with other providers in
improving the payment mechanism and a fundamental
commitment to competitive fairness. These unique
responsibilities must, in the final analysis, be viewed
as an extension of the Federal Reserve's underlying
responsibility for preserving the safety and soundness
of, and improving, the payment system.
Possible Payment System
Improvements
The Federal Reserve is committed to improving the
payment mechanism. In this regard, interest has been
expressed by some depository institutions and others
in having the Federal Reserve introduce major enhancements to existing services and offer new services
that will improve the payment system. In all such
cases, further study will be required before such
enhancements and services can be offered for public
comment or for implementation.
Among other things, such study will focus on technical feasibility, cost and benefits, the compatibility of
the particular initiative with the Federal Reserve's
mission regarding the payment mechanism, and the
compatibility of the initiative with the three criteria for
new service offerings and major service enhancements
specified in this paper. These services might best be
developed by the Federal Reserve independently, or
by acting jointly with depository institutions and other
providers of payment services, as was the case with
MICR encoding of checks and the introduction of
ACH. With this in mind, there are several service
areas that the Federal Reserve believes warrant particular attention over the next year or two. They include
the following:
• Minimization of the costs and the time associated
with the handling and processing of return items.
Initiatives in this area may entail certain short-term
efforts such as notification of the institution of first
deposit of large-dollar return items along the lines
proposed by the Board in June 1984. Long-term efforts
may require the application of new and higher technology to return-item processing as well as continued
efforts to accelerate the collection of checks more
generally.
• In part related to improvements in the return-item
process, efforts to speed up the collection of checks as
well as eliminate some of the physical handling of
Announcements
711
paper by applying electronic technology to the existing
paper-based system. Some form of check truncation,
for example, appears to be a logical step in the
progression toward electronic payments.
• Book-entry service for selected and limited classes
of securities not presently held in book-entry form,
such as municipal securities, might offer attractive
economies while improving security and the payment
flow. The Federal Reserve could provide access to a
number of institutions that might not have access to
existing alternatives.
• Enhancements to existing electronic services, in-
cluding improved electronic delivery and security of
payments.
The payment system will continue to evolve, adopting new technologies and creating new risks and
opportunities. The Federal Reserve has an important
role as a participant in that evolution. As such, the
Federal Reserve will seek opportunities to improve
existing services or to offer new services within the
framework of satisfying its responsibilities to promote
the integrity and efficiency of the payment system,
providing an adequate level of services nationwide,
and serving the long-range interests of the economy.
Appendix: Methodology for Computing
Federal Reserve Bank Costs and Fees
internal financial reporting and control purposes. Classification of expenses by reason or output enables
Federal Reserve management to analyze the overall
costs of Reserve Bank operations in terms of on-going
service responsibilities, the programs instituted to
fulfill these service responsibilities, and the basic
activities or processes included in the provision of
each service.
Within each area of responsibility ("service line")
there are subsidiary "services." The "Services to
Financial Institutions and the Public" service line, for
example, encompasses priced services such as commercial check, electronic funds transfer, securities,
and noncash collection. Within each of these subsidiary services, PACS identifies specific "activities"
that reflect the basic operations or processes within
the services.
PACS classifies all costs into three categories: direct
costs, support costs, and overhead costs. Direct costs
are those costs directly attributable to a given service.
Support costs are those costs, such as computer
programming and building maintenance that, although
not directly used in priced service operations, are
required to support such activities. All support costs
are fully charged to the benefiting activities on a usage
basis. Overhead costs represent all remaining Federal
Reserve costs that cannot be charged directly to an
output service on a usage basis. Examples of overhead
functions include personnel, protection, and budget
control. Overhead costs are allocated to benefiting
services based upon formulas that reflect relative
usage.
Each year, all Federal Reserve fees are reviewed
and revised if necessary. The annual review takes
place during the third quarter of the year. Each
Reserve Bank forecasts its costs and volumes for each
priced service for the upcoming year. Included in the
cost estimate is all direct, support, overhead, and float
costs that are to be allocated to each priced service
In accordance with the Monetary Control Act, the
Federal Reserve establishes prices for its payment
services in order to recover costs and a private sector
adjustment factor (PSAF). The PSAF is an allowance
for the taxes that would have been paid and the return
on capital that would have been provided had the
Federal Reserve's priced services been furnished by a
private sector firm.
Costs for providing services are derived from the
Federal Reserve's Planning and Control System
(PACS). PACS is the uniform financial accounting
system Reserve Banks use for determining the full
costs of fulfilling their four basic areas of responsibility: monetary policy, supervision and regulation, treasury, and financial institutions and the public (the
latter includes both priced and nonpriced services).
The system was developed in the mid-1970s to serve as
a cost accounting system, similar to systems used in
the private sector, and also to serve as a vehicle for
evaluating the cost effectiveness and relative efficiency of Reserve Banks.
PACS provides the Federal Reserve with an important management tool for budgeting and expense control by ensuring that similar expenditures are recorded
by Reserve Banks in the same way and that all
Reserve Banks post and report operating expenses
under a set of common and uniform definitions.
Like most expense accounting systems used in the
private sector, expenses under PACS are classified by
type or "object" of expense, such as salaries, supplies, equipment, and travel, and the reason or "output" to which the expense is related, such as fiscal
service to the Treasury or the provision of check
collection services to depositing institutions. Classification of expenses by type enables the Federal Reserve to collect necessary information for external and
712
Federal Reserve Bulletin • September 1984
line. The cost and volume estimates are based on a
combination of historical experience and projections.
At the same time, the Federal Reserve calculates a
proposed PSAF for the year. Services that have Systemwide uniform prices are based upon the aggregate
cost and volume estimates of the 12 Reserve Banks.
Fees for other priced services (check, safekeeping,
and the like) are based upon cost and volume estimates
of the individual Reserve Banks.
The proposed fees of the Reserve Banks are reviewed by the System's Pricing Policy Committee and
the staff of the Board of Governors. The purpose of the
review is to ensure that the cost and volume estimates
are reasonable, the PSAF calculation is consistent
with System guidelines, and the proposed prices meet
the cost recovery policies of the Board of Governors.
Finally, the Board of Governors reviews the proposed
prices and PSAF.
STANDARDS RELATED TO PRICED
SERVICE
ACTIVITIES OF THE FEDERAL RESERVE
BANKS
MCA, the following additional standards have been
adopted with respect to organization and operations
and business practices.
Background
Organization and Operations
Since 1913, the Federal Reserve has performed a dual
role as both an operator in and a regulator of the
nation's payment mechanism. Over the last 70 years—
and as recently as 1980—the Congress has reaffirmed
this role of the Federal Reserve. The Monetary Control Act of 1980 (MCA) has expanded the Federal
Reserve's role by requiring the Federal Reserve to
provide its services to all depository institutions on an
equitable basis, taking into account the need to ensure
an adequate level of services nationwide.
The Federal Reserve has exercised care to avoid
actual or apparent conflict between its role as a
provider of services and its role as a regulator, supervisor, and lender. Further, the Federal Reserve is
careful to ensure that its actions promote the integrity
and efficiency of the payment mechanism. As an
extension of this, the Federal Reserve exercises care
to ensure that it provides payment services to all
depository institutions on an equitable and impartial
basis. Federal Reserve actions are also implemented in
a manner that ensures fairness to other providers of
payment services. Moreover, there are in place external and internal safeguards that ensure that these
objectives are achieved. Externally, the safeguards
include congressional oversight, directly and through
the General Accounting Office, and statutory controls.
An additional level of external review is provided by
the public through the opportunity to comment on all
significant Board proposals. The internal safeguards
include oversight by the Board of Governors and
Reserve Bank boards of directors through various
means, including use of Board examiners and Reserve
Bank internal auditors. Finally, the Federal Reserve
itself imposes restrictions upon the conduct of its
employees—restrictions intended to avoid even the
appearance of impropriety.
To ensure further that its public interest role is
paramount in providing priced services under the
1. No Reserve Bank personnel with responsibility
for priced services, unless acting in the capacity of
President or First Vice President, will also be responsible for monetary policy, bank supervision, or lending
areas. Personnel involved in priced services will not
make policy decisions affecting monetary policy, bank
supervision, or lending matters.
2. Branch managers may administer policy decisions
of a Reserve Bank in the lending area but may not
make policy decisions in this area.
3. Federal Reserve actions relative to the monetary
policy, supervisory, or lending functions involving a
particular depository institution will be made without
regard to whether that institution is a user of Reserve
Bank services or is an alternate provider of such
services.
4. Except for the President, First Vice President,
branch manager, or persons acting in these capacities,
Reserve Bank personnel involved in monetary policy,
bank supervision, or the lending function may discuss
Federal Reserve priced services with a depository
institution only when necessary to carry out their
responsibilities. With the exceptions noted above,
personnel involved in priced services may discuss
matters relating to monetary policy, bank supervision,
or lending with a depository institution only when the
information discussed is general in nature cr is public.
5. Reserve Bank personnel involved in monetary
policy, bank supervision, or the lending function may
provide confidential information obtained in the
course of their duties to Reserve Bank personnel
involved in priced services only when such action
fulfills an important supervisory objective, preserves
the integrity of the payment mechanism, or protects
the assets of the Reserve Banks. In such cases,
information will be provided on a need-to-know basis
and only with the approval of senior management.
Announcements
Business Practices
1. All activities incident to the provision of priced
services will be conducted in a manner that is fully
consistent with the public role and responsibilities of
the Federal Reserve.
2. Federal Reserve services will be offered on a fair
and equitable basis to all depository institutions on
similar terms and conditions. The prices charged will
be in accordance with the requirements of the MCA as
implemented by policies of the Board of Governors.
Reserve Banks will provide full and accurate information regarding the provision of Federal Reserve services, including features, quality, prices, and operating requirements, to enable depository institutions to
make informed decisions. Comparisons of Federal
Reserve services with those of other providers will be
fair and objective.
4. When introducing or revising services, Reserve
Banks will announce such changes to the public in a
manner that will ensure that communications reach all
interested depository institutions in sufficient time to
enable them to make appropriate adjustments.
Internal
713
Accordingly, inquiries concerning Reserve Bank actions may be directed to Vice Chairman Martin's
attention.
The internal audit and Board examination activities
focus on Reserve Bank compliance with policies,
procedures, and controls, including standards of conduct related to priced service activities. Audit and
examination attention also encompasses activities and
functions such as organizational structure and staffing,
financial accounting and reporting, allocation of costs,
information flows, and associated internal controls.
Conclusion
It is the policy and practice of the Federal Reserve
System to conduct its affairs in a manner that will
serve to maintain the integrity and credibility essential
to the effective discharge Of its public responsibilities.
The Federal Reserve believes that these standards
effectively address questions of potential conflicts
while permitting the Federal Reserve to fulfill its
public responsibilities in the provision of services to
the nation's depository institutions.
Oversight
The primary responsibility for assuring that the above
standards are applied is entrusted to the management
of each Reserve Bank. Accordingly, Reserve Bank
management will ensure that these standards are clearly represented in Reserve Bank policies, procedures,
and controls. Consistent with overall responsibilities,
each Reserve Bank's board of directors provides oversight of business conduct, principally through the
Bank's internal audit function. The internal audit
function of each Reserve Bank maintains independence from operating management by reporting directly to the Reserve Bank's board of directors.
Oversight of Reserve Bank priced service activities
is also carried out by the Board of Governors. This is
accomplished through review and approval at the
Board level of price and service level changes. Furthermore, Reserve Bank priced service activities are
evaluated in conjunction with on-site reviews by the
Board's operations review and financial examination
staffs. Board oversight through these means ensures
that Reserve Bank activities are consistent with the
MCA and Board policies with regard to priced services. In addition, the Board member serving as the
Chairman of the Board's Federal Reserve Bank Activities Committee is responsible for investigating and
responding to complaints concerning actions of Reserve Bank personnel that are alleged to be inconsistent with the standards presented above. Currently,
Vice Chairman Preston Martin serves in this capacity.
FINANCIAL RESULTS OF
PRICED SERVICE
OPERATIONS
The Federal Reserve Board has reported financial results of Federal Reserve priced service
operations for the quarter ended June 30, 1984.
The Board issues a report on priced services
annually and a priced service balance sheet and
income statement quarterly. The financial statements, which are shown in accompanying tables
1 and 2, are designed to reflect standard accounting practices, taking into account the nature of
the Federal Reserve's activities and its unique
position in this field.
NOTES
TO THE FINANCIAL
STATEMENTS
Balance Sheet (table 1)
Federal Reserve assets are classified as short- or long-term. Shortterm assets represent assets such as cash and due from balances,
marketable securities, receivables, materials and supplies, prepaid
expenses, and items in the process of collection. Long-term assets are
primarily fixed assets, such as premises and equipment.
The imputed reserve requirement on clearing balances and investment in marketable securities reflects the Federal Reserve's treatment
of clearing balances maintained on deposit with Reserve Banks by
depository institutions. For balance sheet and income statement
presentation, clearing balances are reported on a basis comparable
with reporting of compensating balances held by respondent institutions with correspondents.
714
Federal Reserve Bulletin • September 1984
2. Pro forma income statement for priced services of
the Federal Reserve System
1. Pro forma balance sheet for priced services of
Federal Reserve Banks, June 30, 1984
Millions of dollars
Millions of dollars
For three
months
ending June
30, 1984
Income or
expense item
160.0
1,173.4
50.9
4.6
3.0
282.8
Total short-term assets
Long-term assets
Premises
Furniture and equipment
Leases and leasehold improvements
169.7
99.5
2.3
1,946.1
Imputed
Interest
Interest
Interest
costs
on float
on short-term debt
on long-term debt
282.8
58.5
1,674.7
Other income and expenses
Investment income
Earnings credits
110.5
223.1
3.1
4.6
0.8
2.2
1.2
.3
9.1
17.1
1.6
4.4
2.4
.6
1.7
26.1
38.2
24.7
31.7
30.1
219.9
64.2
33.9
Income from operations
after imputed costs
1,333.4
Total short-term liabilities
Long-term liabilities
Obligations under capital leases
Long-term debt
112.1
1.6
FDIC insurance
LIABILITIES
Short-term liabilities
Clearing balances
Balances arising from early credit of
uncollected items
Short-term debt
Expenses
Production expenses
LESS: Board approved subsidies.
Income from operations
271.4
Total assets
284.2
Income
Services provided
to depository institutions
1,674.7
Total long-term assets
For six
months
ending June
30, 1984
144.4
ASSETS
Short-term assets
Imputed reserve requirements on clearing
balances
Investment in marketable securities
Receivables
Materials and supplies
Prepaid expenses
Net items in process of collection (float)
59.6
56.5
3.2
Total liabilities
Equity
Total liabilities and equity
26.4
41.3
Imputed income taxes
10.2
16.0
16.2
Total long-term liabilities
Income before income taxes
.4
86.2
25.4
6.0
11.9
86.6
1,761.2
184.8
1,946.1
MEMO
Targeted return on equity
NOTE. Details may not add to totals due to rounding. Accompanying notes are an integral part of these financial statements.
NOTE. Details may not add to totals due to rounding. Accompanying notes are an integral part of these financial statements.
Net items in the process of collection is the amount of float used to
calculate additions to the cost base subject to recovery. Thus, it is the
difference between cash items in the process of collection, including
checks, coupons, securities, and ACH transactions, and deferred
availability cash items. Therefore, the asset item on the balance sheet
corresponds to the amount of float that the Federal Reserve must
recover through fees to satisfy the Monetary Control Act. Conventional accounting procedures would call for the gross amount of cash
items and deferred availability items to be included on a balance sheet.
However, because the gross amounts have no implications for income
or costs and no implications for the calculation of the private sector
adjustment factor (PSAF), they are not reflected on the pro forma
balance sheet.
The accompanying table depicts the Federal Reserve's float performance and float recovery. The amount of float recovered through
per-item fees is valued at the federal funds rate. The value of this float
is then added to the cost base subject to recovery for each appropriate
service.
Long-term assets that are reflected on the balance sheet have been
allocated to priced services using a direct determination basis. This
approach was adopted along with other changes in calculating the
PSAF for 1984. The direct determination method utilizes the Federal
Reserve's Planning and Control System (PACS) to identify assets
used solely in priced services and to apportion assets used jointly in
the provision of different services to priced and nonpriced services.
Included in long-term assets are leases, which have been capitalized
and which are related to priced services. Additionally, resulting from
changes to the PSAF methodology for 1984, an estimate of the assets
of the Board of Governors related to the development of priced
services has been included in long-term assets in the premises
account.
A matched-book capital structure for those assets that are not "selffinancing" has been used to determine the liability and equity
amounts. Short-term assets are financed with short-term debt. Longterm 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 private sector adjustment model.
Float recovery by the
Federal Reserve Banks, 1984:2
Total, adjusted
Unrecovered 1
Subject to recovery
Recovered through "as o f ' adjustments 2
Recovered through direct charges2
Recovered through per-item fees 3
Daily average,
millions of dollars
568.9
105.4
463.5
286.8
119.4
57.3
1. Includes float generated in providing services to government
agencies or in other central bank services and float not recovered as a
result of the ACH subsidy and the phase-in of other float recovery.
2. Interterritory check float may be recovered from depositing
institutions through adjustments to the institution's reserve or clearing
balance or by valuing the float at the federal funds rate and billing the
institution directly.
3. This float is valued at the federal funds rate and has been added
to the cost base subject to recovery in the second quarter.
Announcements
Other short-term liabilities include clearing balances maintained at
Reserve Banks and deposit balances arising from float. Other longterm liabilities consist of obligations on capital leases.
System Income Statement
(table 2)
The income statement reflects the income and expenses for priced
services. Included in these amounts are Board approved subsidies,
imputed float costs, imputed financing costs, and the income and cost
related to clearing balances.
Income reflects charges to depository institutions for priced services. This income is realized through one of two methods: direct
charges to an institution's deposit account or charges against accumulated earnings credits. Expenses include production expenses and the
expenses of Board staff working directly on the development of priced
services that amounted to $0.5 billion in the second quarter of 1984.
Board approved subsidies consist of a program established for the
commercial automated clearinghouse (ACH) service. The incentive
pricing program established for the ACH service provides for fee
structures designed to recover an increasing share of expenses. In
1984, ACH revenues are intended to recover 60 percent of costs plus
the private sector adjustment. This incentive pricing program is being
phased out, with complete elimination planned in 1985.
Imputed float costs include the value of float that was intended to be
recovered, either explicitly or through per-item fees, during the first
quarter of 1984 for the commercial check, automated clearinghouse,
and book-entry securities transfer services. Also included in imputed
costs is the interest on short- and long-term debt used to finance
priced service assets through the PSAF, and the sales taxes and FDIC
insurance, which the Federal Reserve would have paid had it been a
private sector firm.
Other income and expenses are comprised of income on clearing
balances and the cost of earnings credits granted to depository
institutions. In calculating the earnings credits paid on clearing
balances, the Federal Reserve takes into account the fact that reserve
requirements would be applied to compensating balances held at
correspondent banks. Had the reserve adjustment to earnings credits
been in place in the second quarter, and assuming no resulting shift in
clearing balances, the expenses of earnings credits would have been
about $28.0 million with a resulting increase in net clearing balance
income of $2.1 million and an increase in net income of $1.3 million to
$17.7 million.
Imputed income taxes are calculated at the effective tax rate used in
the PSAF calculation applied to the net income before taxes.
The targeted return on equity represents the after-tax rate of return
on equity that the Federal Reserve would have earned based on a
model of bank holding companies.
CHANGES
IN BOARD
STAFF
The Board of Governors has announced the
promotion of William R. Jones to Assistant Staff
Director in the Office of the Staff Director for
Management effective September 12, 1984.
The Board has also announced the death of
Raymond Lubitz, Assistant Director, Division of
International Finance. He had been a staff member since 1973.
PROPOSED
ACTIONS
The Federal Reserve Board approved publication for comment of a revision and expansion of
its Rules Regarding Equal Employment Opportu
715
nity. The Board requested comment by October
23, 1984.
The Board also announced that it has extended
the period for comment on proposals published
in June for revision of the Board's Regulation K
(International Banking Operations) from September 12 to October 12, 1984.
REVISION OF FEE STRUCTURE
TRANSFERS OF FUNDS
FOR
WIRE
The Federal Reserve Board has published a
revision to the fee structure for the Federal
Reserve's wire transfer of funds service. The
revision includes a reduction of the basic fee for
originating or receiving a wire transfer of funds
from $0.65 to $0.60 per transfer, effective September 27, 1984.
At the same time, the Board established a
fixed monthly fee for all depository institutions
that have an electronic connection with the Federal Reserve for one or more priced services,
effective January 2, 1985.1
The Board acted after consideration of comment received on proposals published in January.
The fixed monthly fees are the following:
Type of connection
Monthly fees
(dollars)
All priced services, except dedicated
ACH connections
Dedicated leased line
Multi-drop (shared) leased line
Dial-up line
300
225
60
Dedicated ACH connections1
Dedicated leased line
Multi-drop (shared) leased line
Dial-up line
240
180
48
1. The automated clearing house (ACH) service is priced under an
incentive pricing policy. The fees for dedicated ACH connections
reflect the 80 percent recovery rate for the service that is anticipated
to be in effect during January 1985. Currently, a daily fee of $0.75 is
assessed for ACH electronic deliveries. This fee will be eliminated on
January 2, 1985.
The Board's notice respecting the fixed
monthly fees for electronic connections will be
available shortly from the Federal Reserve
Banks.
1. Priced services include the automated clearinghouse,
wire transfer of funds, net settlement, book-entry securities,
check collection, definitive safekeeping, and noncash collection. The fees would not be assessed for dedicated bookentry securities connections because the fee structure for that
service is currently under review.
716
Federal Reserve Bulletin • September 1984
SYSTEM
MEMBERSHIP:
ADMISSION OF STATE
BANKS
The following banks were admitted to membership in the Federal Reserve System during the
period August 10 through September 10, 1984:
Arizona
Grande
Florida
Coral Gables
Texas
Flower Mound
Garland
Virginia
Vienna
Wyoming
Cheyenne
Bank of Casa Grande Valley
Transatlantic Bank
Flower Mound Bank
Southwest Bank-Garland
Sailors and Merchants Bank
and Trust Company
Frontier Bank
of Laramie County
717
Record of Policy Actions of the
Federal Open Market Committee
MEETING
HELD ON JULY
Domestic
Policy
16-17,1984
Directive
The information reviewed at this meeting suggested that growth in real G N P in the second
quarter, though moderating from the annual rate
of about 93/4 percent currently recorded for the
first quarter, would be stronger than the annual
rate of about 53/4 percent indicated by the preliminary estimate of the Commerce Department.
Although the expansion in economic activity was
continuing at a strong pace, in late spring and
early summer there were indications of moderation in some sectors. Average prices, as measured by the fixed-weight price index for gross
domestic business product, appeared to have
risen more slowly in the first half of 1984 than in
1983.
Industrial production rose about ¥i percent in
both May and June, after average increases of
about 1 percent per month earlier in the year.
Output of business equipment and defense and
space products continued to show sizable gains,
while production of durable consumer goods and
construction supplies leveled off. The rate of
capacity utilization in manufacturing edged up
0.1 percentage point in each month to 81.8 percent in June, the average for the 1967-82 period.
The rise in total retail sales slowed in the M a y June period from an extraordinarily rapid pace in
April. In the second quarter as a whole, sales
advanced about 2Va percent, after a rise of V/i
percent in the first quarter. Sales gains were
reported at all major types of stores in the second
quarter, but were particularly strong at general
merchandise, apparel, and furniture and appliance stores. Sales of new domestic automobiles
continued at an annual rate of about SVt million
units, the same pace as in the first quarter.
Housing starts declined in May, the latest
month for which data were available, to a level
about 10 percent below the average for the first
four months of the year. Sales of both new and
existing homes edged down in May, apparently
in response to the rising cost of mortgage credit.
In contrast to the slowing in the housing sector, business fixed investment, in real terms,
appeared to have grown quite rapidly in the
second quarter, perhaps faster than the annual
rate of 16 percent reported for the first quarter.
Shipments of nondefense capital goods increased
sharply in May, more than offsetting a decline in
April, and data on new orders pointed to further
gains in the months ahead. Recent surveys on
spending plans also suggested continued strength
in business fixed investment.
Nonfarm payroll employment, adjusted for
strike activity, rose 300,000 further in both May
and June. Employment gains in services and
trade accounted for a major part of the increase
in each month. In manufacturing, employment in
durable goods industries advanced somewhat
further, but employment in nondurable goods
firms was flat. The civilian unemployment rate
fell appreciably over the two-month period, to
7.1 percent in June.
The producer price index for finished goods
was unchanged in June for the third consecutive
month. In the second quarter as a whole, a
marked decline in prices of consumer foods
offset an increase in prices of energy-related
items, as most other components of the index
changed little. The rise in the consumer price
index slowed in May to 0.2 percent from 0.5
percent in April. The index of average hourly
earnings increased more slowly over the first half
of this year than in 1983.
In foreign exchange markets, the trade-weighted value of the dollar against major foreign
currencies had risen about 3V£ percent on balance since the Committee's meeting in May. The
dollar weakened for a brief period early in the
intermeeting interval, partly reflecting rumors
718
Federal Reserve Bulletin • September 1984
about the vulnerability of large U.S. banks to
international debt problems. Subsequently, indications of more strength in U.S. economic activity than had been anticipated and increases in
U.S. short-term interest rates contributed to an
appreciation of the dollar to a level above its
peak in early January. The U.S. merchandise
trade deficit rose further in the April-May period
relative to the first quarter; an increase in oil and
non-oil imports exceeded a slight rise in exports.
At its meeting on May 21-22, 1984, the Committee had decided that, in the period immediately ahead, policy should be directed toward maintaining existing pressures on reserve positions.
That action was expected to be consistent with
growth in M l , M2, and M3 at annual rates of
around 6V2, 8, and 10 percent respectively during
the period from March to June. The Committee
also agreed that somewhat greater restraint
might be acceptable in the event of more substantial growth of the monetary aggregates, while
somewhat lesser restraint might be acceptable if
growth of the monetary aggregates slowed significantly. Any such adjustment would be considered only in the context of appraisals of the
continuing strength of the business expansion,
inflationary pressures, financial market conditions, and the rate of credit growth. The intermeeting range for the federal funds rate, which
provides a mechanism for initiating consultation
of the Committee, was retained at IV2 to W/2
percent.
Ml grew at an annual rate of about 12'/4
percent on average in May and June, after having
changed little in April. As a result, expansion in
Ml over the March-to-June period was at an
annual rate of about 8V4 percent, above the
Committee's expectation for that period. Growth
in the broader aggregates was about in line with
expectations, as M2 and M3 grew at estimated
annual rates of 73A and 1014 percent respectively
over the three-month period. Relative to the
Committee's longer-run ranges for 1984, M l by
June was somewhat below its upper limit, M2
was a little below the midpoint of its range, and
M3 was above the upper limit of its range.
Total domestic nonfinancial debt continued to
expand in the second quarter at a pace above the
Committee's monitoring range for the year, with
both federal and private borrowing very strong.
Borrowing that was related to business mergers
and acquisitions accounted for some of the rapid
private credit growth but even after adjustment
for such borrowing, the rate of expansion in total
debt was estimated to have exceeded the upper
limit of the Committee's range.
Growth in total reserves picked up in May and
accelerated further in June, reflecting increased
demand for excess reserves and rapid expansion
of required reserves associated with strong
growth in demand deposits in June and a surge in
large time deposits that began in May. The
increase in reserves provided by discount window credit, extended because of the special
situation of one large bank, was offset by reduced reserve provision through open market
operations, so that there was little change in
other borrowing. Adjustment plus seasonal borrowing (excluding advances to the large bank)
continued to average close to $1 billion in the
three complete reserve maintenance periods after the previous Committee meeting. In the first
part of the current two-week statement period
ending July 18, average borrowing was running
lower, at about $670 million.
The federal funds rate moved up irregularly
over the intermeeting period, from an average of
around IOV2 percent at the time of the May
meeting to a range of around 11 to 11V2 percent in
recent weeks. Pressures in the money market
were especially marked around the mid-June tax
date and in the reserve maintenance period containing the quarter-end statement date and the
July 4 holiday. The federal funds rate moved
higher over the intermeeting interval despite
little change in the average level of adjustment
plus seasonal borrowing at the discount window.
In addition to usual end-of-quarter and holiday
pressures in the federal funds market, banks
apparently became willing to pay more for federal funds as credit demands continued strong and
other sources of funds remained relatively expensive. On balance, rates on bank CDs and
other private short-term securities rose about V2
to 3A percentage point further, while rates on
Treasury bills were about unchanged. The
heightened uncertainties in financial markets,
reflecting concerns about international debt
problems and shifting perceptions about the outlook for economic activity and credit demands,
led to a widening of differentials between yields
on private instruments and Treasury obligations
Record of Policy Actions of the FOMC
and to considerable day-to-day rate fluctuation.
In long-term debt markets, rates moved over an
exceptionally wide range but over the intermeeting period as a whole rates on most private
obligations changed little on balance, while those
on Treasury bonds declined about 15 to 40 basis
points. Commercial banks raised their " p r i m e "
rate Vi percentage point to 13 percent in the last
week of June. The average rate on conventional
fixed-rate mortgage loans at savings and loan
associations rose about Vs percentage point over
the intermeeting interval to a little above 145/s
percent.
The staff projections presented at this meeting
suggested that growth in real GNP would moderate appreciably over the second half of the year
and into 1985 to a sustainable rate of expansion.
The staff continued to expect a decline in unemployment over the period and, given recent
strong gains in employment, the projected level
of unemployment was somewhat lower than previously anticipated. Although current evidence
of wage and price pressures was limited, the rate
of increase in prices was expected to pick up
modestly from its recent pace as the economy
continued to move toward fuller utilization of its
productive resources.
In the Committee's discussion of the economic
situation and outlook, the members commented
that the expansion appeared to have a good deal
of momentum, but with limited indications of
some moderation. For the months immediately
ahead, the members generally expected a slower,
although relatively sizable, rate of expansion in
economic activity and a comparatively subdued
rate of inflation. Most believed that appreciably
slower but sustainable growth with some pickup
in the rate of inflation were probable, though by
no means certain, prospects for 1985. Several
observed, however, that uncertainties created by
various imbalances and financial strains in the
economy made forecasting economic activity
and prices particularly difficult at this time, and
less confidence should be placed in any particular forecast.
In keeping with the usual practice for meetings
when the Committee considers its longer-run
objectives for monetary growth, the members
had prepared specific projections of economic
activity, the rate of unemployment, and average
prices. With regard to growth in real GNP, the
719
projections had a central tendency of 6LA to 63A
percent for 1984 as a whole and 3 to 3LA percent
for 1985, all measured from fourth quarter to
fourth quarter. The central tendency for the rate
of unemployment was an average rate in a range
of 63/4 to 7 percent for the fourth quarter of 1984
and 6'/2 to 7 percent for the fourth quarter of
1985. The members' projections for the implicit
GNP deflator centered on a rise of 4 to 4!/2
percent for the year 1984 and about one percentage point higher for the year 1985, assuming that
the value of the dollar in foreign exchange markets would remain generally in the trading range
experienced over the past year. The projections
also took into account the monetary policy decisions made at this meeting.
The members recognized that there were a
number of threats to the realization of the relatively favorable economic developments implied
by their projections and that the maintenance of
a satisfactory economic performance for an extended period could only be assured by timely
actions in a number of policy areas. Given the
persisting strength of domestic demands, which
had been growing faster than GNP as reflected in
the widening deficit in external trade, several
members indicated their concern about the risks
that those demands might proceed too long at an
unsustainable pace, with potentially adverse implications for inflationary pressures and for the
continuation of the expansion itself. On the other
hand, most members clearly did not want to rule
out the possibility that relatively high interest
rates, partly related strains in international and
domestic financial markets, and cautionary attitudes that might be emerging in economic sectors
such as housing might result in more substantial
slowing than was typically indicated. Various
imbalances and distortions in the economic and
financial picture, notably the massive deficits in
the federal budget and in the current account of
the balance of payments, were also viewed as
particular sources of concern.
With regard to the federal budget, current
legislation was cited as a welcome development,
but further measures were deemed essential to
reduce the widening structural deficit. Federal
financing requirements would otherwise continue to absorb a large part of available net savings
in a period of heavy demands for credit by
businesses and households. The resulting pres-
720
Federal Reserve Bulletin • September 1984
sures in financial markets would aggravate the
strains on thrift and some other financial institutions and would impair the creditworthiness of
both potential new borrowers such as homebuyers and the growing number of borrowers
with outstanding loans or commitments on a
variable interest rate basis. Relatively high interest rates would also worsen financial pressures in
the agricultural sector where many farmers were
experiencing serious debt problems. In addition,
high U.S. interest rates tended to exacerbate the
already severe debt-servicing problems of several developing countries and, in the process, to
lessen confidence in U.S. banks with sizable
loans to such countries.
With regard to the balance of payments and
related capital flows, the unprecedented volume
of capital attracted from abroad was contributing
to the appreciation of the dollar despite enlarged
deficits in the trade and current accounts. Such
inflows were helping to finance domestic credit
needs and were contributing to moderation of
inflationary pressures. However, their sustainability was subject to doubt, and their eventual
decrease, especially if associated with a sudden
and sharp fall in the value of the dollar, could
have adverse repercussions for the economy.
While the members generally anticipated a
small increase in wages and prices over the
period through the end of 1985, they discussed
possible developments that could produce a different outcome. Some members, who were relatively optimistic about the outlook for inflation,
emphasized such factors as the remaining margins of unemployed resources in the economy,
which might in fact be underestimated by current
measures of capacity utilization, the impact of
competition from abroad, and the prospects for
faster gains in productivity than many observers
expected. They also suggested that wage settlements might continue to be relatively restrained,
to the extent that workers' wage demands had
been reduced significantly by back-to-back recessions in the past few years and concomitant
high unemployment and a recent period of relatively low inflation. Several members noted,
however, that important negotiations currently
under way or about to begin, especially in the
automobile industry, could have a significant
precedential impact on subsequent wage negotiations. All of the members recognized that infla
tionary pressures would be greater than otherwise, perhaps substantially so, if growth in
demands for goods and services for too long
exceeded sustainable rates or if the value of the
dollar were to decline substantially over the
projection period.
At this meeting the Committee reviewed its
target ranges for 1984 and established tentative
ranges for 1985 within the framework of the Full
Employment and Balanced Growth Act of 1978
(the Humphrey-Hawkins Act). 1 At its meeting
on January 30-31, 1984, the Committee had
adopted growth ranges of 6 to 9 percent for both
M2 and M3 for the period from the fourth quarter
of 1983 to the fourth quarter of 1984, and a range
of 4 to 8 percent for Ml over the same period. It
was understood at that time that substantial
weight would continue to be placed on M2 and
M3 in policy implementation and that, for some
interim period, the behavior of Ml would be
evaluated in light of the performance of the
broader aggregates. Because of the changed
composition of M l , reflected in the relatively
rapid growth of its NOW and Super NOW components, its relationship to GNP remained uncertain and required further observation. The monitoring range for total domestic nonfinancial debt
had been set at 8 to 11 percent for the year 1984.
With regard to the target ranges for 1984, all of
the members favored the retention of the existing
ranges for Ml and M2, both of which had grown
at rates within the Committee's targets over the
first half of 1984. The members continued, however, to recognize the difficulty of anticipating
the ongoing relationships of these aggregates
with broad economic measures under changing
economic and financial circumstances, particularly in light of the rapid expansion of new
deposit accounts in a period of deregulation and
of marked changes in financial practices.
The members expected expansion in M3 and
total domestic nonfinancial debt to moderate
during the second half of 1984, but growth in
both measures, especially domestic debt, was
still believed likely to exceed the existing ranges
for the year as a whole. Accordingly, some
members favored raising the ranges somewhat to
1. The Board's Midyear Monetary Policy Report pursuant
to this legislation was transmitted to the Congress on July 25,
1984.
Record of Policy Actions of the FOMC
reflect first-half developments and the Committee's expectations for the year. However, a
majority preferred to retain the existing ranges
on the ground that higher ranges would provide
an inappropriate benchmark forjudging the longrun growth desired by the Committee. It was also
suggested that raising these ranges might be
misread as an easing of monetary policy rather
than as a technical adjustment to past developments, including the unusual extent of mergerrelated and leveraged buyout financings, which
were estimated to have added about 1 percentage
point to the rate of credit growth during the first
half of the year.
At the conclusion of this discussion, the Committee voted as follows to reaffirm the ranges for
the monetary aggregates and the associated
range for total domestic nonfinancial debt that
were established at the January meeting:
The Committee agreed at this meeting to reaffirm
the ranges for monetary growth that it had established
in January: 4 to 8 percent for Ml and 6 to 9 percent for
both M2 and M3 for the period from the fourth quarter
of 1983 to the fourth quarter of 1984. The associated
range for total domestic nonfinancial debt was also
reaffirmed at 8 to 11 percent for the year 1984. It was
anticipated that M3 and nonfinancial debt might increase at rates somewhat above the upper limits of
their 1984 ranges, given developments in the first half
of the year, but the Committee felt that higher target
ranges would provide inappropriate benchmarks for
evaluating longer-term trends in M3 and credit growth.
Votes for this action: Messrs. Volcker, Solomon,
Boehne, Boy kin, Corrigan, Gramley, Mrs. Horn,
Messrs. Martin, Partee, Rice, Ms. Seger, and
Mr. Wallich. Votes against this action: None.
Turning to the establishment of tentative
ranges for 1985, the members stressed the desirability of taking further action, in line with previously stated Committee intentions, to reduce
growth in money and credit over time to rates
that would be consistent with maintaining reasonable price stability and sustainable economic
expansion. However, individual members expressed some small differences in their views
about the amount or timing of specific reductions
in the ranges for 1985.
In discussion of the tentative range for Ml
growth for 1985, the members generally favored
lowering the upper limit and narrowing the range
721
to a width more consistent with the ranges for the
other aggregates. Discussion centered on whether the range should be reduced to 4 to 7 percent
or 4 to IVi percent. Members who preferred the
range with a 7 percent upper limit commented
that it would represent an appropriate reduction
from 1984 because it would signal more clearly
the Committee's intention to reduce monetary
growth to rates more consistent with reasonable
price stability while encouraging further expansion of economic activity. Those who preferred
the smaller reduction in the upper limit felt that a
cautious approach was warranted in light of the
many uncertainties bearing on the economic outlook and developments with respect to velocity.
They also noted that the ranges would be reviewed next February and could then be reduced
further if circumstances warranted.
Most members favored a small reduction for
M2 in 1985, although a few expressed an initial
preference for no change. A lower range for M2
would be in keeping with the Committee's intention to reduce monetary growth over time and, at
least on the basis of the recent behavior of M2,
would be consistent with the members' projections of lower growth in nominal GNP for 1985.
On the other hand, it was argued in support of
retaining the 1984 range that the recently prevailing relationship between M2 and nominal GNP
was at odds with historical trends and a reduction in the M2 range would incur too much of a
risk that actual growth might exceed the range,
even with much slower expansion in nominal
GNP during 1985.
A majority of the members were in favor of not
changing the current ranges for M3 and total
domestic nonfinancial debt for 1985, but a few
members proposed small reductions in the range
for M3 and additional members favored marginal
reductions in the monitoring range for nonfinancial debt. In support of retaining the current
ranges, it was pointed out that, given the expectation that actual growth was likely to exceed
both ranges in 1984, expansion within those
ranges next year would represent a significant
slowdown. However, some members expressed
concern about the implications of rapid debt
expansion this year, which appeared to be reflected to some extent in M3, and they believed
that reduced ranges would be desirable and consistent with overall policy objectives.
722
Federal Reserve Bulletin • September 1984
In the course of discussion about the appropriate ranges for the aggregates, the members noted
that in recent quarters the behavior of Ml in
relation to nominal GNP had been more consistent with previous cyclical patterns than had
been the case during 1982 and early 1983. As a
result it was concluded that Ml should be given
roughly equal weight with the broader monetary
aggregates in the implementation of monetary
policy. However, the behavior of Ml as well as
that of the broader aggregates would still continue to be appraised in light of developments in the
economy and financial markets, the outlook for
inflation, and the rate of credit growth.
At the conclusion of its discussion, the Committee took the following action to establish
tentative ranges for 1985 that included reductions
from 1984 in the upper limits of the ranges for Ml
and M2 by 1 and Vi percentage point respectively
and no changes in the range for M3 and the
associated range for total domestic nonfinancial
debt:
For 1985 the Committee agreed on tentative ranges
of monetary growth, measured from the fourth quarter
of 1984 to the fourth quarter of 1985, of 4 to 7 percent
for Ml, 6 to % i percent for M2, and 6 to 9 percent for
V
M3. The associated range for nonfinancial debt was set
at 8 to 11 percent.
The Committee understood that policy implementation would require continuing appraisal of the relationships not only among the various measures of money
and credit but also between those aggregates and
nominal GNP, including evaluation of conditions in
domestic credit and foreign exchange markets.
Votes for this action: Messrs. Volcker, Solomon,
Boehne, Boykin, Corrigan, Gramley, Mrs. Horn,
Messrs. Martin, Partee, Rice, Ms. Seger, and
Mr. Wallich. Votes against this action: None.
In the Committee's discussion of policy implementation for the weeks immediately ahead,
most of the members indicated that they could
support an approach directed toward maintaining
the existing degree of restraint on reserve positions. Such an approach was thought likely to be
associated with growth in the monetary aggregates from June to September at rates that were
consistent with the Committee's objectives for
the year and below those experienced over the
second quarter, particularly for Ml. Some members commented that the risks of intensified
inflationary pressures as the economy moved
closer to capacity limits would, in other circumstances, warrant some increase of reserve restraint; but the current behavior of the monetary
aggregates and the prospect that earlier increases
in market interest rates would tend after some lag
to be reflected in growth at sustainable rates,
together with the relatively sensitive conditions
in some financial markets, were factors that
argued in favor of an essentially unchanged approach to policy implementation.
With regard to possible deviations in pressure
on reserve positions toward greater or lesser
restraint in response to incoming information,
some members endorsed a symmetrical approach that would relate any deviation in either
direction to the behavior of the monetary aggregates judged in the context of developments in
economic activity, inflationary pressures, financial market conditions, and the rate of growth in
credit. However, most of the members preferred
a somewhat asymmetrical approach that would
involve a more prompt response to the potential
need for a move toward somewhat greater restraint if monetary growth should accelerate in
association with continued indications of an
ebullient economy. In this view, policy implementation should be relatively tolerant, for a
time, of some shortfall in monetary growth because the latter might well prove to be temporary
if the present apparent momentum in the economy were to continue.
In light of recent market developments, the
members generally favored, for technical reasons, raising the intermeeting range for the federal funds rate by a small amount. The members
regard the federal funds range as essentially a
mechanism for initiating Committee consultation
when its limits are persistently exceeded. In
recent weeks federal funds had tended to trade
well up in the current IVi to WVi percent range,
and occasionally above that range, despite a
relatively unchanged level of borrowing at the
discount window (apart from special borrowing
by one large bank). A small upward adjustment
was deemed advisable to provide some leeway
above the recent trading level before triggering a
consultation of the Committee.
At the conclusion of the Committee's discussion, the members indicated their acceptance of
a directive that called for maintaining the existing
Record of Policy Actions of the FOMC
degree of restraint on reserve positions. The
members expected such an approach to be associated with growth of Ml, M2, and M3 at annual
rates of around 5l/z, IVi, and 9 percent respectively in the period from June to September. The
members agreed that somewhat greater restraint
on reserve conditions would be acceptable in the
context of more substantial growth in the monetary aggregates, while somewhat lesser restraint
might be appropriate if monetary growth were
significantly slower. In either event, the need for
greater or lesser restraint would be considered
only against the background of developments
relating to the continuing strength of the business
expansion, inflationary pressures, conditions in
financial markets, and the rate of credit growth.
It was agreed that the intermeeting range for the
federal funds rate would be raised to 8 to 12
percent.
At the conclusion of the meeting the following
domestic policy directive was issued to the Federal Reserve Bank of New York:
The information reviewed at this meeting suggests
that the expansion in economic activity is continuing
at a strong pace, but there are indications of moderation in some sectors. In May and June, industrial
production and retail sales expanded further, though at
a somewhat slower pace than earlier in the year.
Nonfarm payroll employment rose substantially further in both months and the civilian unemployment
rate fell to 7.1 percent in June. Housing starts declined
in May to a rate appreciably below the average in the
first four months of 1984. Information on outlays and
spending plans continues to suggest strength in business fixed investment. Since the beginning of the year,
average prices and the index of average hourly earnings have risen more slowly than in 1983.
Ml grew rapidly in May and June after having
changed little in April, while M2 continued to expand
moderately. M3 growth slowed somewhat in June but
was relatively strong over the second quarter. From
the fourth quarter of 1983 through June, Ml grew at a
rate somewhat below the upper limit of the Committee's range for 1984; M2 increased at a rate a little
below the midpoint of its longer-run range, while M3
expanded at a rate above the upper limit of its range.
Total domestic nonfinancial debt continued to grow in
the second quarter at a pace above the Committee's
monitoring range for the year, reflecting very large
government borrowing along with strong private credit
growth. Interest rates have fluctuated considerably
since the May meeting of the Committee. Financial
markets were affected by concerns arising from international debt problems. On balance, rates on private
723
short-term securities rose further, while rates on Treasury bills were about unchanged; in long-term debt
markets, rates on most private obligations changed
little while those on Treasury bonds declined.
The foreign exchange value of the dollar against a
trade-weighted average of major foreign currencies
has risen considerably further since mid-May to a level
above its peak in early January. The merchandise
trade deficit rose further in April-May compared with
the first quarter; an increase in oil and non-oil imports
exceeded a slight rise in exports.
The Federal Open Market Committee seeks to foster monetary and financial conditions that will help to
reduce inflation further, 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 this meeting
to reaffirm the ranges for monetary growth that it had
established in January: 4 to 8 percent for Ml and 6 to 9
percent for both M2 and M3 for the period from the
fourth quarter of 1983 to the fourth quarter of 1984.
The associated range for total domestic nonfinancial
debt was also reaffirmed at 8 to 11 percent for the year
1984. It was anticipated that M3 and nonfinancial debt
might increase at rates somewhat above the upper
limits of their 1984 ranges, given developments in the
first half of the year, but the Committee felt that higher
target ranges would provide inappropriate benchmarks
for evaluating longer-term trends in M3 and credit
growth. For 1985 the Committee agreed on tentative
ranges of monetary growth, measured from the fourth
quarter of 1984 to the fourth quarter of 1985, of 4 to 7
percent for Ml, 6 to 8V2 percent for M2, and 6 to 9
percent for M3. The associated range for nonfinancial
debt was set at 8 to 11 percent.
The Committee understood that policy implementation would require continuing appraisal of the relationships not only among the various measures of money
and credit but also between those aggregates and
nominal GNP, including evaluation of conditions in
domestic credit and foreign exchange markets.
In the short run, the Committee seeks to maintain
existing pressures on reserve positions. This action is
expected to be consistent with growth in Ml, M2, and
M3 at annual rates of around 5'A, IV2, and 9 percent
respectively during the period from June to September. Somewhat greater reserve restraint would be
acceptable in the event of more substantial growth of
the monetary aggregates, while somewhat lesser restraint might be acceptable if growth of the monetary
aggregates slowed significantly. In either case, such a
change would be considered only in the context of
appraisals of the continuing strength of the business
expansion, inflationary pressures, financial market
conditions, and the rate of credit growth. The Chairman may call for Committee consultation if it appears
to the Manager for Domestic Operations that pursuit
of the monetary objectives and related reserve paths
during the period before the next meeting is likely to
be associated with a federal funds rate persistently
outside a range of 8 to 12 percent.
724
Federal Reserve Bulletin • September 1984
Votes for this action: Messrs. Volcker, Solomon,
Boehne, Boykin, Corrigan, Gramley, Mrs. Horn,
Messrs. Partee, Rice, Ms. Seger, and Mr. Wallich.
Vote against this action: Mr. Martin.
Mr. Martin dissented from this action because
he wanted to give more weight to the possible
need for some easing of reserve conditions in
light of the vulnerability of key sectors of the
economy and of financial markets to high interest
rates. He also believed that somewhat higher
objectives for monetary growth should be established for the third quarter.
725
Legal Developments
BANK HOLDING COMPANY, BANK MERGER, AND
BANK SERVICE CORPORATION
ORDERS
ISSUED
BY THE BOARD OF
GOVERNORS
Orders Issued Under Section 3 of Bank
Company Act
Holding
The following Order was inadvertently omitted from
the September 1983 BULLETIN.
Credit and Commerce American Holdings
N.V., Willemstad, Netherlands Antilles
Credit and Commerce American Investment
B.V., Amsterdam, The Netherlands
First American Corporation
Washington, D.C.
First American Bankshares, Inc.,
Washington, D.C.
Order Approving Acquisition of Shares of Bank
Credit and Commerce American Holdings, N.V., Willemstad, Netherlands Antilles; Credit and Commerce
American Investment, B.V., Amsterdam, The Netherlands; First American Corporation, Washington,
D.C.; and First American Bankshares, Inc., Washington, D.C. (collectively "CCAH"), have applied for the
Board's approval under section 3(a)(3) of the Bank
Holding Company Act (12 U.S.C. § 1842(a)(3)) to
acquire additional shares of Valley Fidelity Bank and
Trust Company ("Valley Fidelity"), Knoxville, Tennessee; CCAH already owns 35 percent of the voting
stock of Valley Fidelity.
CCAH is a grandfathered multi-state bank holding
company with subsidiary banks in Maryland, New
York, Tennessee, Virginia, and the District of Columbia. It succeeded to this status when it acquired
Financial General Bankshares, Inc., (Credit and Commerce American Holdings, N.V., 67 FEDERAL RE-
considered the application and all comments received,
including those of Union Planters Corporation, Knoxville, Tennessee ("Union Planters"), in light of the
factors set forth in section 3(c) of the Act (12 U.S.C.
§ 1842(c)).
Valley Fidelity, with deposits of $189 million, is the
16th largest bank in Tennessee, holding 0.9 percent of
total deposits in commercial banks in the state.1 It is
the 3rd largest of eight banks in the relevant banking
market,2 and holds 8.1 percent of deposits in commercial banks in the market.
Because CCAH proposes only to acquire additional
shares of a bank that is a subsidiary, consummation of
the proposal would have no adverse effects on competition or increase the concentration of banking resources in any relevant market. Accordingly, competitive considerations are consistent with approval.
The financial and managerial resources and future
prospects of CCAH and Valley Fidelity are satisfactory. The Board thus concludes that considerations
relating to banking factors are consistent with approval. Although no changes are contemplated in the
services to be offered by Valley Fidelity, considerations relating to the convenience and needs of the
community to be served are also consistent with
approval.
Section 3(d) of the Act (12 U.S.C. § 1842(d)) prohibits Board approval of any application which would
permit a bank holding company to acquire, directly or
indirectly, any voting shares of "any additional bank
located outside of the State in which the operations of
such bank holding company's banking subsidiaries
were principally conducted on . . . the date on which
the company became a bank holding company." The
proposed transaction raises the issue of the applicability of section 3(d), because CCAH has its primary
place of business in Virginia and Valley Fidelity is in
Tennessee. Thus, the issue presented is whether acquisition of additional shares of Valley Fidelity would
constitute acquisition of shares of an "additional
bank" located in Tennessee, a state other than the
SERVE BULLETIN 737 (1981)).
Notice of the application, affording opportunity for
interested persons to submit comments, has been
given in accordance with section 3 of the Act and the
time for filing comments has expired. The Board has
1. All banking data are as of June 30, 1982.
2. The relevant banking market is the Knoxville banking market,
which consists of the Knoxville RMA and includes Anderson, Blount,
and Knox Counties in Tennessee.
726
Federal Reserve Bulletin • September 1984
home state of CCAH. If Valley Fidelity were an
additional bank, then the Board could not approve the
proposed acquisition.
Neither the Act nor the legislative history of section
3(d) definitively explains the term "additional bank."
The legislative history of the section indicates that its
general purposes were to prohibit future expansion of
bank holding company banking operations across state
lines, to preserve local control of banks, and to
conform the restrictions in the BHC Act to the prohibitions against branch banking contained in the McFadden Act.3
Union Planters opposes CCAH's application, contending that Board approval of the application is
barred by section 3(d). Union Planters argues that
unless section 3(d) is construed to permit the acquisition of additional shares only in cases where the bank
holding company already controls a majority of the
bank's shares, Congressional intent to prevent interstate expansion would be frustrated.
As support for this assertion, Union Planters cites
the provisions of section 3(a)(B) of the Act, which
exclude from the Act's prior approval requirements
the acquisition of additional shares in majority-owned
banks. In Union Planters' view, this section evidences
a Congressional determination that only a majorityowned bank would not be deemed an "additional
bank" within the meaning of section 3(d). Alternatively, Union Planters states that at minimum a bank
holding company should be required to demonstrate
that it has "actual operating control" of an out-of-state
bank before being allowed to increase its ownership
interest. Finally, Union Planters asserts that the Board
should deny CCAH's application on the basis that it is
inconsistent with the purposes of section 3(d), even if
it is not barred by the literal words of that section.
Thus, Union Planters claims that approval of this
application would permit CCAH to merge Valley
Fidelity with other Tennessee banks and thereby expand CCAH's Tennessee operations in a manner inconsistent with the underlying purpose of section 3(d).
The Board has carefully reviewed Union Planters'
contentions and finds them to be unpersuasive for the
following reasons. It is unlikely that Congress intended the phrase "additional bank" in section 3(d) to
mean any bank that is not majority-owned, because
the prohibitions of section 3(d) only apply to applications that must be filed under the BHC Act and, as
noted above, applications are not required for the
acquisition of additional shares of majority-owned
banks. Thus, Union Planters' construction of the
statute would effectively alter section 3(d) to state that
3. 102 CONG. REC. 6856-6863 (1956).
the Board may not approve an application to acquire
shares of any out-of-state bank, and the word "additional" would be meaningless.
In contrast, a straightforward reading of the prohibition of section 3(d) would be that it bars the purchase
of shares of out-of-state banks that the bank holding
company does not control. Such an interpretation
provides a common sense meaning for the term "additional bank," and would prevent bank holding companies from acquiring any out-of-state banks that were
not controlled on the date the company became a bank
holding company. This reading of the statute would be
consistent with the stated desire of Congress to grandfather existing interstate banking organizations. It is
far more likely that Congress intended that the meaning of "additional bank" be construed in light of its
determination that a company is to be presumed
conclusively to control a bank when it owns 25 percent
or more of the bank's voting shares, 12 U.S.C.
§ 1841(a), and that such a bank also is deemed a
subsidiary of the company, 12 U.S.C. § 1841(d). Thus,
the Board believes that it is more reasonable to
conclude that a bank that is 25 percent or more owned
by an out-of-state bank holding company is not an
"additional bank" for purposes of section 3(d).
This construction of the statute also is consistent
with Board precedent. In Otto Bremer Foundation, 52
F E D E R A L R E S E R V E B U L L E T I N 1761 (1966), the applicant bank holding companies (two affiliated organizations) had owned 49 percent of the shares of an out-ofstate bank prior to enactment of the Act. In acting on a
proposal to acquire an additional 50 percent of the
bank's shares, the Board ruled that:
The term "additional bank" is interpreted by the Board to
mean a bank other than a subsidiary bank. Therefore, since
Bank is already a subsidiary of Applicants, the subject
applications may be approved provided such approval is
authorized by and consistent with other provisions of the
Act. Id. at 1763.
The Board regards its Otto Bremer decision as providing direct support for CCAH's proposal to acquire
additional shares of Valley Fidelity.4
4. Contrary to Union Planters' assertions, the Board's decision in
the Sumitomo
Bank,
Ltd. c a s e , 63 FEDERAL RESERVE BULLETIN 411
(1977), has little relevance to the Otto Bremer precedent. Sumitomo
involved the issue of whether a company can have a grandfathered
interest in an out-of-state bank as a result of having a controlling
influence over that bank under section 2(a)(2)(C) of the BHC Act, and
the conditions imposed by the Board in that case were simply a means
of reserving this issue for later decision. Reservation of this issue in no
way limits the Otto Bremer precedent because the bank in Otto
Bremer, as the bank in this case, was a subsidiary as a matter of law,
by virtue of the holding company's ownership of more than 25 percent
of its voting shares.
Legal Developments
Although Union Planters claims that CCAH does
not have "actual operating control" over Valley Fidelity, such a requirement is irrelevant for purposes of
section 3(d).5 The term "control" is defined with some
precision in the BHC Act, and the concept of "actual
operating control" is not articulated in that definition.
The term "controlling influence" is used in the Act,
but it is merely one of three types of control listed and,
as noted above, CCAH clearly possesses one of the
other types of control defined in the Act. Moreover,
whereas a controlling influence may be found only
after a formal Board determination that such control
exists, the type of control held by CCAH through its
ownership of 25 percent or more of Valley Fidelity's
shares is both automatic and conclusive.6
Union Planters nevertheless asserts that the Board's
Otto Bremer decision stands for the proposition that a
bank holding company must have "actual operating
control" of an out-of-state bank in order to acquire
additional shares of that bank. Although the Board
stated that the Otto Bremer applicants appeared to
have "working control" of the bank involved, 52
FEDERAL RESERVE B U L L E T I N at 1 7 6 5 , this statement
was unrelated to the Board's analysis of the section
3(d) issue. Rather, this observation was related to the
5. Even if both the validity and relevance of the allegations made by
Union Planters in this regard are assumed, the Board would not regard
this evidence as being particularly persuasive. For example, although
Union Planters attaches significance to its assertion that officers and
directors of Valley Fidelity discussed with Union Planters a proposal
by Union Planters to acquire Valley Fidelity, such actions appear
consistent with the fiduciary duties of those officials to the shareholders of Valley Fidelity and would not, therefore, provide evidence that
CCAH does not have actual control of Valley Fidelity. Similarly, the
fact that CCAH has only one director on Valley Fidelity's board
suggests little regarding CCAH's ability to control Valley Fidelity
because many bank holding companies have only one or two representatives on the boards of directors of their subsidiary banks.
6. Union Planters has requested that a hearing be held to determine
whether CCAH exercises "actual operating control" over Valley
Fidelity. However, whether CCAH has "actual operating control", as
defined by Union Planters, is immaterial to the Board's determination
whether Valley Fidelity is an "additional bank" within the meaning of
section 3(d). As noted above, the Board has previously ruled that a
subsidiary bank is not an "additional bank" under section 3(d). Valley
Fidelity is not an "additional bank" as a matter of law by virtue of
CCAH's ownership of more than 25 percent of Valley Fidelity's
shares.
Under section 3(b) of the Act, the Board is required to hold a
hearing when the primary supervisor of the bank to be acquired
recommends disapproval of an application (12 U.S.C. § 1842(b)). In
this case, the Tennessee Commissioner of Banking has not objected to
the application. Thus, there is no statutory requirement that the Board
hold a hearing. Moreover, there are no material issues of fact to be
resolved at a hearing since the existence of "actual operating control"
is irrelevant. The Board has received numerous written submissions
by Union Planters and CCAH, and it does not appear that a hearing
would significantly supplement the record before the Board. In view
of these facts, the Board concludes that the record in this case is
sufficiently complete to render a decision. Accordingly, Union Planters' request for a hearing is denied.
727
Board's assessment of the likelihood that an increase
in the bank's shares owned by the applicants would
result in an alteration of the bank's operations that
would benefit the local community.
Finally, although the Board agrees with Union
Planters' statement that the Board has broad discretion under section 5(b) of the BHC Act to prevent
evasion of that Act, the Board does not accept Union
Planters' further assertion that this proposal represents an evasion of the purposes of section 3(d), even
if it is not prohibited by the literal words of that
section. Union Planters claims that this proposal could
result in a change in the actual control of Valley
Fidelity and that such a shift in control is inconsistent
with the basic purposes of section 3(d) to prevent
expansion of out-of-state banking interests. Union
Planters also states that such a shift in actual control
would allow CCAH to acquire other Tennessee banks
by merger.
In view of the fact that CCAH is conclusively
presumed to control Valley Fidelity under the BHC
Act, the Board believes that an increase in CCAH's
interest in that bank cannot be viewed as inconsistent
with the Act's purposes. Similarily, the BHC Act
generally exempts bank mergers from the Act's prior
approval requirements, and the use of such transactions by grandfathered multi-state bank holding companies to expand their banking operations outside of
their state of principal banking operations is therefore
consistent with the Act's structure. In addition, it is
quite clear that Congress intended to grandfather
existing multi-state bank holding companies, and there
is no evidence of any desire on the part of Congress to
prevent such holding companies from preserving their
control of existing out-of-state subsidiaries. Only a few
bank holding companies possess such grandfather
rights, and this exception is thus of very limited
applicability.
Union Planters also asserts that the application
provides insufficient information regarding (1) the
source of funds to be used to finance the proposed
transaction, (2) the identities of any new shareholders
of CCAH, and (3) certain allegations surrounding
Mr. Darwaish, a principal shareholder of CCAH.
CCAH proposes to acquire the remaining 63.4 percent ownership in Valley Fidelity for $20.3 million.
The application indicates that the source of funds for
the acquisition of additional shares of Valley Fidelity
will be additional equity investments by shareholders
or available cash resources. The record also shows
that on March 28, 1983, CCAH sold its 67.6 percent
investment in the Bank of Commerce, New York,
New York, for $34.4 million cash. These funds will be
available, if necessary, for the purchase of Valley
Fidelity's shares.
728
Federal Reserve Bulletin • September 1984
CCAH may sell additional shares at some time in the
future to raise additional equity. The identity of any
possible new shareholders of CCAH is not provided in
the application. However, the Board does not believe
that such information is necessary to assess the managerial factors of this application. CCAH's current
principals have been identified to the Board and the
Board has assessed the management of CCAH in the
course of its ongoing supervisory and regulatory responsibilities. If any change in the control of CCAH
were contemplated, a notice to the Board would be
required which would necessarily include information
concerning any new principal of CCAH. Union Planters notes that information concerning Mr. Abdullah
Darwaish, a former principal of CCAH who has been
the subject of certain allegations, is not included in the
application. However, the Board has been informed
by CCAH that Mr. Darwaish was a principal only to
the extent that he acted as the representative of
Mohammad bin Zaid al Nahyan, a minor son of Sheik
Zayed Nahyan, the ruler of Abu Dhabi, who owns 14.7
percent of CCAH's shares. Mr. Darwaish was dismissed from this position in 1982. The son has reached
his majority and is now acting on his own behalf as an
owner of CCAH.
Finally, CCAH argues that Union Planters has no
standing to oppose this application since section 105 of
the 1970 Amendments to the Act (12 U.S.C. § 1850)
extends standing only to "a party who would become
a competitor of the applicant or subsidiary thereof by
virtue of the applicant's or its subsidiary's acquisition." Here, Union Planters currently competes with
Valley Fidelity, through Hamilton First Bank, N.A., a
subsidiary bank located in the Knoxville banking
market. In addition, CCAH claims that Union Planters
is not within the zone of interests to be protected by
section 3(d) of the Act since CCAH does not believe
its proposal contravenes section 3(d) or its underlying
rationale.
The language contained in section 105 of the 1970
Amendments to the BHC Act serves as a specific grant
of standing to particular parties, but is not meant to
exclude all other parties who may have a legitimate
interest in Board proceedings. Judicial tests of standing apply to any party that seeks to intervene in a
Board proceeding. Martin-Trigona v. Federal Reserve
Board, 509 F.2d 363, 366 (D.C. Cir. 1975). See National Welfare Rights Organization v. Finch, 429 F.2d 725,
732 and n. 27 (D.C. Cir. 1970).
Even if it were determined that the protest by Union
Planters did not fall within the specific grant of standing contained in section 105, the assertions by Union
Planters concerning the applicability of section 3(d) to
CCAH's proposal represent a colorable claim of injury
sufficient to give Union Planters standing to partici
pate in these proceedings, particularly since one purpose of section 3(d) is to protect banking organizations
such as Union Planters from out-of-state competition.
See Sierra Club v. Morton, 405 U.S. 727, 736-40
(1972).
Having found that the competitive, financial and
managerial, and convenience and needs considerations associated with the application are consistent
with approval, the Board has determined that consummation of the transaction would be consistent with the
public interest and that the application should be
approved.
On the basis of the record, the application is approved for the reasons summarized above. The 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
Richmond acting pursuant to delegated authority.
By order of the Board of Governors, effective
August 17, 1983.
Voting for this action: Governors Wallich, Partee, Teeters,
Rice, and Gramley. Absent and not voting: Chairman
Volcker and Governor Martin.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
Eagle Bancorporation, Inc.
Highland, Illinois
Order Approving Merger of Bank Holding
Companies, Acquisition of Banks and Denying
Acquisition of a Bank
Eagle Bancorporation, Highland, Illinois, has applied
for the Board's approval under sections 3(a)(3) and
3(a)(5) of the Bank Holding Company Act (the "Act")
(12 U.S.C. §§ 1842(a)(3), (5)) to merge with two one
bank holding companies and thereby acquire their
subsidiary banks; to acquire directly the voting stock
of a bank, and to acquire two one bank holding
companies and thereby indirectly acquire their subsidiary banks. Applicant proposes to merge with American Eagle Bancorp, Inc., Glen Carbon, Illinois
("American Eagle"), whose subsidiary bank is Eagle
Bank of Madison County, Glen Carbon, Illinois, and
with EBI, Inc., whose subsidiary bank is Eagle Bank
of Charleston, Charleston, Illinois (Charleston Bank).
Applicant proposes to acquire 97.5 percent of the
voting shares of Eagle Bank of Macon County, Forsyth, Illinois ("Macon Bank"), and the following one
Legal Developments
bank holding companies: First Rantoul Corporation,
Rantoul, Illinois, and thereby indirectly the Eagle
Bank of Champaign County, Rantoul, Illinois ("Rantoul Bank") and Harrisburg Bancshares, Inc., Harrisburg, Illinois, and thereby indirectly Harrisburg National Bank, Harrisburg, Illinois (Harrisburg Bank).
Together, the banks and bank holding companies to be
acquired are referred to as "Banks". Applicant's
principals currently control all of the banks to be
acquired except Harrisburg Bank.
Notice of the applications, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views has expired,
and the Board has considered the applications and all
comments received in light of the factors set forth in
section 3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant is one of the smaller banking organizations in Illinois, and controls three banking subsidiaries with aggregate domestic deposits of $117.7 million,
representing approximately 0.1 percent of the total
deposits in commercial banks in the state.1 Approval
of the proposals to acquire the five additional banks,
which hold combined deposits of $127.7 million, would
make the Applicant the 39th largest commercial banking organization in Illinois, and Applicant's share of
the total deposits in commercial banks in the state
would increase to approximately 0.3 percent. Consummation of this proposal would not result in a significant
increase in the concentration of banking resources in
Illinois.
Both Applicant and American Eagle compete in the
St. Louis banking market.2 American Eagle's subsidiary bank controls 0.1 percent of the total deposits in
commercial banks in the market. On October 3, 1983,
Applicant's lead bank, Eagle Bank and Trust Company, Highland, Illinois, opened a facility in the St.
Louis banking market at Collinsville, Illinois. Due to
its relatively recent opening, data regarding the market
share for the facility are not available. In the Board's
judgment, consummation of the transaction would not
have a significant adverse effect upon existing competition in the St. Louis banking market.
Each of the other four banks Applicant proposes to
acquire operates in a separate banking market in which
Applicant's subsidiary banks do not compete. Accordingly, consummation of these proposals would not
have any significant adverse effects on existing compe-
tition in these markets.3 In addition, in view of the size
and market shares of the banks involved in this
proposal, consummation of the transaction would not
result in any significant adverse effects upon probable
future competition in any relevant market. Considerations related to the convenience and needs of the
community are also consistent with approval.
The Board has indicated on previous occasions that
a bank holding company should be a source of financial and managerial strength to its subsidiaries, and
that the Board will closely examine the condition of an
applicant in each case with these considerations in
mind.4 The Board has also indicated and continues to
believe that capital adequacy is an especially important factor in the analysis of bank holding company
proposals, particularly in transactions where a significant acquisition is proposed, and that it will consider
the implications of a significant level of intangible
assets arising from a proposed expansion.5
The proposed transactions represent a substantial
acquisition for Applicant that would more than double
its size in terms of total assets. Applicant proposes to
fund these acquisitions through the issuance of equity
securities and the assumption of debt, which would
significantly increase its debt-to-equity ratio.
Applicant's primary capital and total capital ratios
both exceed the minimum levels in the Board's current6 and proposed Capital Adequacy Guidelines.7
Intangibles represent less than 7 percent of Applicant's primary capital.
As a result of this proposal, Applicant's capital on a
tangible basis would decline substantially, to a level
below that specified in the Board's current and proposed Capital Adequacy Guidelines, and more than
one third of Applicant's primary capital would consist
of intangibles. On a tangible basis, Applicant's pro
forma primary capital ratio would be less than 4.5
percent. While, in previous cases, the Board has
included intangible assets in evaluating a bank holding
3. These markets are the Champaign-Urbana banking market,
which is approximated by all of Champaign County, Illinois, except
for the southeastern townships of Ayer, Raymond and Crittenden; the
Harrisburg banking market, which is approximated by Gallatin and
Saline Counties, Illinois; the Decatur banking market, which is
approximated by all of Macon County, Illinois, plus Moweaqua
township in Shelby County, Illinois, and the Coles County banking
market, which is approximated by Coles County, Illinois.
4. Emerson First National Company, 67 FEDERAL RESERVE BULLETIN 344 (1981). 12 CFR § 225.4(a)(1).
5. National
743. Banks
1. Banking data are as of June 30, 1983.
2. The St. Louis banking market includes all of the city of St. Louis
and St. Louis County, portions of Franklin, Jefferson, Lincoln and St.
Charles Counties, Missouri, plus portions of Jersey, Macoupin,
Madison, Monroe, and St. Clair Counties, Illinois.
729
City Corporation,
of Mid America,
70 FEDERAL RESERVE BULLETIN
Inc. ,70 FEDERAL RESERVE BULLETIN 460
(1984). Manufacturers Hanover Corporation (CIT), 70 FEDERAL RESERVE BULLETIN 452, 453 (1984).
6. Capital Adequacy Guidelines (12 C.F.R. Part 225 Appendix A).
7. Proposed Minimum Capital Guidelines for Bank Holding Companies, 49 Federal Register 30317 (July 30, 1984).
730
Federal Reserve Bulletin • September 1984
company's capital adequacy, the Board has not approved an Applicant's reliance on intangible assets to
the extent proposed here to meet the Board's minimum capital requirements.
The financial and managerial resources of Applicant's three existing subsidiary banks, Harrisburg
Bank, and two of the remaining four banks to be
acquired are generally satisfactory. The financial and
managerial resources of the other two banks, however, which had been subject to supervisory concern
when they were recently acquired by Applicant's
principals, are in need of improvement, and Applicant's principals have begun to take action to improve
these banks. The Board is particularly concerned with
the substantial reduction in Applicant's tangible primary capital and increase in the level of indebtedness
that would result from this proposal in view of the
need for improvement of these two banks.
In evaluating Applicant's financial and managerial
resources the Board has considered the fact that four
of the banking organizations to be acquired are already
owned by Applicant's principals and that this proposal
represents merely a reorganization of the ownership of
the banks from individuals to a corporation owned by
the same individuals. The acquisition of Harrisburg,
however, represents a major expansion by Applicant
and its principal shareholders and a diversion of their
overall financial and managerial resources at a time
when their efforts should be devoted to ensuring the
proper maintenance of the four banking organizations
they already control, and particularly their two recent
acquisitions.
On the basis of the facts of record, including the fact
that the financial and managerial resources of Applicant and its principal shareholders are already committed to Applicant's existing subsidiary banks and the
affiliated banks, the Board believes that, on balance,
Applicant's financial and managerial resources are
consistent with approval of its application to acquire
the four banks that are already owned by Applicant's
principals. The Board concludes, however, that Applicant's resources are not sufficient to support the
additional acquisition of Harrisburg Bank and at the
same time continue to serve as a source of financial
and managerial strength to its existing subsidiary
banks as well as the four affiliated banks it seeks to
acquire. The record shows that over half of the intangible assets involved in the combined transactions and
one third of the debt of the consolidated organization
would be attributable to the acquisition of Harrisburg
Bank. Absent the Harrisburg acquisition, Applicant's
pro forma ratios of debt to equity, and primary capital
are generally consistent with the Board's Capital Adequacy Guidelines, and do not unduly rely on intangibles.
On the basis of the foregoing and all the facts of
record, it is the Board's judgment that approval of the
application to acquire Harrisburg Bancshares, Inc.,
would not be in the public interest, and that this
application should be and hereby is denied. The applications to merge with American Eagle Bancorp, Inc.,
and EBI, Inc., and to acquire Eagle Bank of Macon
County and First Rantoul Corporation are approved.
The approved transactions should not be made
before the thirtieth calendar day following the effective
date of this Order, or later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of St. Louis under delegated
authority.
By order of the Board of Governors, effective
August 17, 1984.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, Rice, and Gramley. Absent and not
voting: Chairman Volcker and Governor Seger.
WILLIAM W. WILES
[SEAL]
Secretary of the Board
Fourth National Corporation
Marion, Arkansas
Order Approving Acquisition of a Bank Holding
Company
Fourth National Corporation, Tulsa, Oklahoma, a
bank holding company within the meaning of the Bank
Holding Company Act of 1956 ("Act"), 12 U.S.C.
§ 1841 et seq., has applied for the Board's approval
under section 3(a)(3) of the Act, 12 U.S.C.
§ 1842(a)(3), to acquire all of the voting shares of
United Bancshares, Inc. ("UBI"), Tulsa, Oklahoma,
and thereby to acquire indirectly United Bank, Tulsa,
Oklahoma.
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing comments has expired, and the Board
has considered all comments in light of the factors set
forth in section 3(c) of the Act, 12 U.S.C. § 1842(c).
Applicant's subsidiary bank, the Fourth National
Bank of Tulsa ("Fourth National"), Tulsa, Oklahoma,
is the sixth largest commercial bank in Oklahoma. It
controls total deposits of $327 million,1 which represents 1.3 percent of the total deposits in commercial
1. All deposit data are as of June 30, 1983.
Legal Developments
banks in the state. United Bank is the 127th largest
commercial bank in Oklahoma. It controls total deposits of $47.5 million, which represents 0.2 percent of the
total deposits in commercial banks in the state. Upon
consummation of the proposal, Applicant would remain the sixth largest commercial banking organization in Oklahoma. It would control total deposits of
$374.5 million, which represents 1.5 percent of the
total deposits in commercial banks in the state. Thus,
consummation of this proposal would have no significant effect upon the concentration of commercial
banking resources in Oklahoma.
Fourth National Bank and United Bank operate in
the Tulsa market.2 Although one of Applicant's principals is also a principal in six other Oklahoma bank
holding companies, none of the subsidiary banks of
these companies is located in the Tulsa market. Fourth
National Bank is the third largest commercial bank in
that market, controlling 6.4 percent of deposits in
commercial banks in the market. United Bank is the
25th largest bank in the Tulsa market, controlling 0.9
percent of the deposits in commercial banks in the
market.
Upon consummation of this proposal, Applicant
would control 7.4 percent of the deposits in commercial banks in the Tulsa market, and would remain the
third largest commercial banking organization. The
Tulsa market is only moderately concentrated and
would remain so upon consummation of this proposal.3 The pre-merger Herfindahl-Hirschman Index
("HHI") in the Tulsa market is approximately 1280.
Upon consummation of the proposal, the HHI would
increase by 12 points to approximately 1292. In view
of these facts, the Board concludes that while consummation of this proposal would eliminate some existing
competition in the Tulsa market, it would not have a
significant adverse effect upon competition in that
market, or in any other relevant market. Accordingly,
competitive considerations are consistent with approval of this application.
Where principals of an applicant are engaged in
operating a chain of banking organizations, the Board,
in addition to analyzing the proposal before it, also
considers the entire chain and analyzes the financial
and managerial resources and future prospects of the
chain under the Board's Capital Adequacy Guidelines.
The financial and managerial resources and future
prospects of Applicant, its affiliates, UBI, and United
2. The Tulsa market is defined as the Tulsa Ranally Metro Area.
3. Under the Justice Department Merger Guidelines (June 14,
1982), a market with a Herfindahl-Hirschman Index ("HHI") of
between 1000 and 1800 is considered moderately concentrated. In
such markets, the Justice Department is unlikely to challenge any
acquisition that results in an increase in the HHI of less than 100
points.
731
Bank are consistent with approval, particularly in light
of the recent efforts of Applicant's principal to
strengthen the financial and managerial resources of
three of Applicant's affiliates. Considerations relating
to the convenience and needs of the communities to be
served also are consistent with approval of this application.
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
Kansas City, acting pursuant to delegated authority.
By order of the Board of Governors, effective
August 29, 1984.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, Gramley, and Seger. Absent and not
voting: Chairman Volcker and Governor Rice.
JAMES MCAFEE
[SEAL]
Associate Secretary of the Board
Ken-Caryl Investment Company
Littleton, Colorado
Order Approving Formation of a Bank Holding
Company
Ken-Caryl Investment Company, Littleton, Colorado,
has applied for the Board's approval under section
3(a)(1) of the Bank Holding Company Act of 1956, as
amended ("Act") (12 U.S.C. § 1842(a)(1)), to become
a bank holding company by acquiring all of the voting
shares of Ken-Caryl National Bank, Littleton,
Colorado.
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, a nonoperating company, was organized
for the purpose of becoming a bank holding company
by acquiring Bank. Upon consummation, principals of
Applicant would control a banking organization with
deposits of $7.4 million, which is one of the smallest
banking organizations in Colorado.1
1. Banking data are as of March 31, 1984.
732
Federal Reserve Bulletin • September 1984
The proposed transaction represents a corporate
reorganization and would not increase the concentration of banking resources in any relevant area. Neither
Applicant nor any of its principals is affiliated with any
other banking organization in the banking market
within which Bank is located2 and consummation of
the proposal would not result in any adverse effects
upon competition in any relevant area. Considerations
relating to the convenience and needs of the community to be served are also consistent with approval.
Although Applicant will incur some debt in connection with the proposed acquisition, its debt-to-equity
ratio will be within the level permitted under the
Board's policy statement regarding the formation of
small one-bank holding companies.3 Based on all the
facts of record, particularly commitments made by
Applicant's principal, the Board concludes that Applicant's financial and managerial resources and future
prospects are consistent with approval.
On the basis of these and other facts of record, it is
the Board's judgment that the application should be,
and hereby 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 Kansas City pursuant to
delegated authority.
By order of the Board of Governors, effective
August 22, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Rice, Gramley, and Seger.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
Midwest Financial Group, Inc.
Peoria, Illinois
Order Approving the Merger of Bank Holding
Companies
Holding Company Act (12 U.S.C. § 1841 et seq.)
("Act"), has applied for the Board's approval under
section 3(a) of the Act (12 U.S.C. § 1842(a)) to merge
with First Bloomington Corporation, Bloomington,
Illinois ("Company"). As a result of the transaction,
Applicant would acquire Company's subsidiary bank,
The National Bank of Bloomington, Bloomington,
Illinois ("Bank"). 1
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. 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 fifth largest commercial banking organization in Illinois, controls 17 subsidiary banks
with aggregate deposits of $1.4 billion, representing
1.4 percent of the total deposits in commercial banks
in the state.2 Company, one of the smaller commercial
banking organizations in Illinois, controls one subsidiary bank with aggregate deposits of $113.9 million,
representing 0.1 percent of the total deposits in commercial banks in the state. Upon consummation of this
proposal, Applicant would remain the fifth largest
commercial banking organization in Illinois, controlling 1.5 percent of the total deposits in commercial
banks in the state. Accordingly, the merger of Applicant and Company would not have any significant
effect on the concentration of banking resources in
Illinois.
Applicant competes directly with Company's subsidiary bank in the Bloomington-Normal banking market.3 Applicant is the largest commercial banking
organization in the relevant banking market with
$121.5 million in deposits, which represents 16.0 percent of the total deposits in commercial banks in the
market.4 Company is the third largest commercial
banking organization in the relevant market, controlling $104.4 million in deposits, which represents 13.7
percent of the total deposits in commercial banks in
the market. Upon consummation of this proposal,
Applicant would control $225.9 million in deposits in
the relevant market and 29.7 percent of the total
deposits in commercial banks in the market.
Midwest Financial Group, Inc., Peoria, Illinois, a bank
holding company within the meaning of the Bank
2. Bank is located in the Denver banking market, which is approximated by all of Denver County, plus the western third of Adams
county, the western third of Arapahoe County, the northern half of
Jefferson County, a portion of extreme southwest Weld County, and a
portion of extreme southeast Boulder County.
3. " R e v i s i o n of Regulation Y , " 70 FEDERAL RESERVE BULLETIN
144-145 (1984), "Appendix B—Policy Statement for Formation of
Small One-Bank Holding Companies."
1. Applicant has also filed an application with the Comptroller of
the Currency under the Bank Merger Act to merge one of its bank
subsidiaries, Corn Belt Bank, Bloomington, Illinois, with Bank. The
resulting bank would operate under the name of Corn Belt National
Bank of Bloomington.
2. State banking data are as of June 30, 1983.
3. The Bloomington-Normal banking market is approximated by
McLean County, Illinois.
4. All market data are as of September 30, 1983.
Legal Developments
733
Although an acquisition of this size would normally
cause concern, the Board believes that certain facts of
record mitigate the anticompetitive effects of the transaction. First, the Bloomington-Normal banking market is only moderately concentrated and would remain
so upon consummation of this proposal. Although the
Herfindahl-Hirschman Index ("HHI") would increase by 438 points upon consummation, the resulting
HHI would be only 1488,5 and the share of deposits
held by the four largest commercial banking organizations in the market would be 66.8 percent. Furthermore, 18 independent commercial banking competitors would remain in the market upon consummation
of this proposal.
Finally, in its evaluation in previous cases of the
competitive effects of a proposal, the Board has indicated that thrift institutions have become, or at least
have the potential to become, major competitors of
commercial banks.6 On this basis, the Board has
accorded substantial weight to the influence of thrift
institutions in its evaluation of the competitive effects
of a proposal. In this case, the increase in concentration in the Bloomington-Normal banking market is
alleviated by the presence of eight thrift institutions in
the market that hold deposits of $538.2 million, which
represents approximately 41 percent of the total deposits in commercial banks and thrift institutions in the
market.7 The market's largest depository institution,
Bloomington Federal Savings and Loan Association
("Bloomington Federal") is a thrift institution that
controls $333.8 million in deposits8 and is substantially
larger than any of the commercial banking organizations in the market. The thrift institutions in the
market currently offer a full range of consumer services and transaction accounts, as well as commercial
real estate loans. Thrift institutions in the market have
the power to engage in the business of making commercial loans, and available evidence indicates that a
number of the market's thrift institutions, particularly
Bloomington Federal, are now engaged in commercial
lending activities. Consequently, the Board has determined that consummation of this proposal would not
have a significantly adverse effect on existing competition in the Bloomington-Normal banking market.
Applicant's financial and managerial resources and
future prospects are generally satisfactory. Bank has
not been a strong competitor recently and its market
share and deposits declined during 1983. Approval of
this application would provide Bank with the financial
resources needed to improve its capital and earnings
position and maintain banking services to the Bloomington-Normal community. Banking and convenience
and needs factors therefore lend weight toward approval of the application and outweigh any anticompetitive effects that may result from consummation of
this proposal. Accordingly, the Board has determined
that consummation of the transaction would be consistent with the public interest and that the application
should be approved.
On the basis of the record, this application is approved for the reasons summarized above. The merger
shall not be consummated before the thirtieth calendar
day following the effective date of this Order, or later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of
Chicago, acting pursuant to delegated authority.
By order of the Board of Governors, effective
August 14, 1984.
5. Under the Department of Justice Merger Guidelines, a market
with a post-merger HHI of between 1000 and 1800 is considered
moderately concentrated. In such markets, the Department is "more
likely than not" to challenge a merger that produces an increase in the
HHI of 100 points or more.
6. Florida National Banks of Florida, Inc., 70 FEDERAL RESERVE
BULLETIN 147 (1984); Comerica, Inc. (Bank of the Commonwealth),
Northwest Illinois Bancorp, Inc.
Freeport, Illinois
69 FEDERAL RESERVE BULLETIN 797 (1983); General
Bancshares
Corporation, 69 FEDERAL RESERVE BULLETIN 802 (1983); First Tennessee National Corporation, 69 FEDERAL RESERVE BULLETIN 298
(1983).
7. If 50 percent of the deposits of thrift institutions were taken into
account in computing market shares, Applicant's market share would
be 11.8 percent, Company's market share would be 10.1 percent, and
the HHI would be 867, a level which the Justice Department considers
as representing unconcentrated markets. Upon consummation of this
proposal, Applicant's market share would increase to 21.9 percent,
and the HHI would increase by 239 points to 1106, a level in the lower
end of the moderately concentrated range.
8. Thrift institution data are as of September 30, 1982.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, Rice, and Gramley. Absent and not
voting: Chairman Volcker and Governor Seger.
WILLIAM W . WILES
[SEAL]
Secretary of the Board
Order Approving Retention of Bank Holding
Companies and Banks
Northwest Illinois Bancorp, Inc., Freeport, Illinois, a
bank holding company within the meaning of the Bank
Holding Company Act ("Act")(12 U.S.C. § 1841
et seq.), has applied for the Board's approval under
section 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to
retain all of the voting shares of Pecatonica Bancshares, Inc., Pecatonica, Illinois ("Pecatonica Bancshares"), and thereby indirectly Bank of Pecatonica,
Pecatonica, Illinois ("Pecatonica Bank"); all of the
734
Federal Reserve Bulletin • September 1984
voting shares of Rock City Bancshares, Inc., Rock
City, Illinois ("Rock City Bancshares"), and thereby
indirectly Rock City Bank, Rock City, Illinois ("Rock
City Bank"); and 70 percent of the voting shares of
The Whaples and Farmers State Bank, Neponset,
Illinois ("Whaples Bank"). 1 Together the bank holding companies and banks to be retained are referred to
as Banks.
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 controls one commercial bank, Freeport
State Bank, Freeport, Illinois ("Freeport Bank").
Freeport Bank is the 117th largest commercial bank in
Illinois, with total deposits of $121.1 million, representing 0.1 percent of total deposits in commercial
banks in the state.2 Pecatonica Bank (deposits of $19.5
million), Rock City Bank (deposits of $12.7 million),
and Whaples Bank (deposits of $4.2 million), are
among the smaller commercial banks in the state.
Upon consummation of this proposal, Applicant
would control total deposits of $157.5 million, representing less than 0.2 percent of the total deposits in
commercial banks in the state. Accordingly, consummation of this proposal would not result in any significant adverse effects on the concentration of banking
resources in Illinois.
Both Freeport Bank and Rock City Bank compete in
the Freeport banking market.3 Freeport Bank is the
largest of 12 commercial banks in the market, controlling 30.3 percent of the total deposits in commercial
banks. Rock City Bank is the seventh largest commercial bank in the market, controlling 3.2 percent of the
total deposits in commercial banks. Upon consummation of this proposal, Applicant would control total
deposits of $133.8 million, representing 33.5 percent of
the total deposits in commercial banks in the market.
The four largest commercial banks in the Freeport
banking market control 75.1 percent of the total deposits in commercial banks and the Herfindahl-Hirschman Index ("HHI") is 1962. Upon consummation of
this proposal, the four-firm concentration ratio would
increase to 78.3 percent and the HHI would increase
by 194 points to 2156.4 While consummation of this
proposal would eliminate some existing competition
between Freeport Bank and Rock City Bank, the
Board has concluded that the anticompetitive effects
of this proposal are mitigated by the extent of competition afforded by thrift institutions in the market and
several other factors.5
Three thrift institutions hold total deposits of $132.2
million, representing 24.9 percent of the total deposits
in the market and rank as the third, fourth, and eighth
largest depository organizations in the market. The
thrift institutions in the market offer a full range of
transaction accounts (including NOW accounts), in
addition to consumer lending services, and have begun
to offer commercial lending services. In view of these
facts, the Board has considered the presence of thrift
institutions as a significant factor in assessing the
competitive effects of this proposal in the Freeport
banking market.6
The Board has also considered the fact that Banks
had been subject to supervisory concern prior to their
acquisition by Freeport Bank, further mitigating the
competitive effects of Applicant's acquisition of Rock
City Bank.7 Based on the foregoing and other facts of
record, the Board concludes that consummation of
this proposal would not result in any significant adverse competitive effects in the Freeport banking
market.
Whaples Bank competes in the Kewanee banking
market8 and Pecatonica Bank competes in the Rockford banking market.9 Applicant does not compete in
1. Applicant, through its subsidiary, Freeport State Bank, Freeport, Illinois ("Freeport Bank"), currently controls Banks indirectly.
Freeport Bank acquired Banks on April 25, 1984, from their former
principals in satisfaction of debts previously contracted in good faith.
2. All banking data are as of June 30, 1983.
3. The Freeport banking market is defined as Stephenson County,
Illinois.
(1984).
8. The Kewanee banking market is defined as all of Bureau County
and all of Henry County, except for the townships of Western,
Colona, Edford, Hanna, and Geneseo, all in Illinois.
9. The Rockford banking market is defined as all of Boone and
Winnebago Counties, plus the townships of Marion, Scott, Byron, and
Monroe in Ogle County, all in Illinois.
4. Under the United States Department of Justice Merger Guidelines (June 14, 1982), a market in which the post-merger HHI is greater
than 1800 is considered to be highly concentrated. In such markets,
the Department has indicated that it is likely to challenge any merger
that produces an increase in the HHI of 100 points or more.
5. The Board has previously determined that thrift institutions have
become, or at least have the potential to become, major competitors of
banks. NCNB Corporation, 70 FEDERAL RESERVE BULLETIN 225
(1984); Sun Banks, Inc., 69 FEDERAL RESERVE BULLETIN 934 (1983);
Merchants
Bancorp,
69 FEDERAL RESERVE BULLETIN
865
FEDERAL RESERVE BULLETIN 298 (1983).
6. If 50 percent of the deposits held by thrift institutions were
included in the calculation of market concentration, Applicant would
remain the largest financial institution in the market, controlling 26
percent of the total deposits; Rock City Bank would be the 10th largest
financial institution in the market controlling 2.7 percent of total
deposits; the four-firm concentration ratio would be 65.9 percent; and
the HHI would decrease to 1526. Upon consummation of this proposal, Applicant would control 28.7 percent of the total deposits in the
market, the four-firm concentration ratio would increase to 68.6
percent, and the HHI would increase by 140 points to 1666.
7. See Gainer
Inc.,
(1983); Monmouth Financial Services, Inc., 69 FEDERAL RESERVE
BULLETIN 867 (1983); First Tennessee National Corporation, 69
Corporation,
70 FEDERAL RESERVE BULLETIN 439
Legal Developments
either of these markets, and accordingly, consummation of this proposal would have no effect on existing
competition in those markets. In addition, consummation of this proposal would have no significant effect
on probable future competition in the Kewanee or
Rockford banking markets.
The financial and managerial resources of Applicant
and its subsidiaries are generally satisfactory and their
prospects appear favorable. The financial and managerial resources of Banks would be enhanced by this
proposal and their prospects appear favorable, especially in light of certain commitments made by Applicant. Applicant has proposed several new services for
Banks, including investment advisory services, discount brokerage services, farm management services,
student loans, credit card services, overdraft checking
services, credit insurance services, and ATM facilities. In addition, Applicant plans to expand the Banks'
trust, data processing, checking, and deposit services.
Accordingly, the Board has concluded that factors
relating to the convenience and needs of the communities to be served lend weight toward approval of this
proposal and outweigh any adverse competitive effects
of this proposal.
Based on the foregoing and other facts of record, the
Board has determined that consummation of this proposal is in the public interest and that the application
should be and hereby is approved for the reasons
summarized above.
By order of the Board of Governors, effective
August 29, 1984.
735
Order Approving Acquisition of Shares
in Georgia Interchange Network, Inc.
the voting shares of Georgia Interchange Network,
Inc. ("GIN Network"), Atlanta, Georgia, a joint venture to engage de novo in data processing and related
activities. The GIN Network will operate an electronic
funds transfer ("EFT") system for interchanging financial transactions throughout the state of Georgia.
The Board has previously determined that participation in a joint venture to operate an EFT system is
closely related to banking and permissible under section 225.25(b)(7) (12 C.F.R. § 225.25(b)(7)(i) and (ii)) of
Regulation Y. See e.g., Atlantic Bancorporation,
et al., 69 FEDERAL RESERVE BULLETIN 639 (1983).
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been duly published. 49 Federal Register 13426
(April 4,1984). The time for filing comments and views
has expired and the Board has considered the application and all comments received in light of the factors
set forth in section 4(c)(8) of the BHC Act.
On June 25, 1984, the Board approved the applications of seven bank holding companies for each also to
acquire an 8.33 percent interest in the GIN Network.
See CB&T Bancshares, Inc., et al./Georgia Interchange Network, Inc., 70 FEDERAL RESERVE BULLETIN 589 (1984) ("CB&T Order").' The purpose of the
instant application is to allow Applicant to become an
additional equity participant in the GIN Network.
Applicant incorporates by reference the record of
those applications, and has committed to abide by the
terms and conditions of the CB&T Order.
Upon a review of the record of this application and
the record reflected in the related CB&T Order, the
Board concludes that consummation of this de novo
joint venture proposal would not result in any significantly adverse effects on existing or probable future
competition. Approval of this application and operation of the joint venture also can reasonably be expected to produce benefits to the public through the
addition of a new provider of data processing services
and an alternative EFT interchange in Georgia, as well
as providing increased individual access to automated
teller machines and point of sale terminals throughout
Georgia.
There is no evidence in the record in this case
indicating that consummation of the present proposal
would result in undue concentration of resources,
unfair competition, conflicts of interests, unsound
banking practices or other adverse effects. Based upon
First City Bancorp, Inc., Marietta, Georgia, a bank
holding company within the meaning of the Bank
Holding Company Act ("BHC Act") (12 U.S.C.
§ 1841 et seq.), 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 acquire 8.33 percent of
1. The remaining 8.33 percent owners of the GIN Network are:
Georgia Telco Credit Union, Atlanta, Georgia; DFS Services, Inc., a
wholly owned subsidiary of Decatur Federal Savings and Loan
Association, Decatur, Georgia; a wholly owned subsidiary of Fulton
Federal Savings and Loan Association, Atlanta, Georgia; and a
wholly owned subsidiary of Georgia Federal Bank, F.S.B., Atlanta,
Georgia.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, Gramley, and Seger. Absent and not
voting: Chairman Volcker and Governor Rice.
JAMES MCAFEE
[SEAL]
Associate Secretary of the Board
Orders Issued Under Section 4 of Bank
Company Act
Holding
First City Bancorp, Inc.
Marietta, Georgia
736
Federal Reserve Bulletin • September 1984
the foregoing and other facts of record, the Board
concludes that the balance of public interest factors it
must consider under section 4(c)(8) favors approval of
this application. In addition, the financial and managerial resources and future prospects of Applicant are
considered consistent with approval.
Accordingly, the Board concludes that approval of
this application is in the public interest and has determined that the application should be approved. This
determination is subject to the conditions set forth
in Regulation Y, including sections 225.4(d) and
225.23(b)(3), to the terms and conditions of the CB&T
Order that are expressly incorporated herein by reference, and to the Board's authority to require such
modification or termination of the activities of a bank
holding company or its subsidiaries as the Board finds
necessary to assure compliance with the provisions
and purposes of the Act and the Board's regulations
and orders issued thereunder or to prevent evasion
thereof.
Consummation of this transaction shall not be made
later than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of
Atlanta pursuant to delegated authority.
By order of the Board of Governors, effective
August 6, 1984.
Voting for this action: Chairman Volcker and Governors
Martin and Partee. Abstaining from this action: Governors
Wallich and Gramley. Absent and not voting: Governors Rice
and Seger.
WILLIAM W . WILES
[SEAL]
Secretary of the Board
First Highland Corporation
Highland Park, Illinois
("FIC"), and North State Investment Corporation,
Highland Park, Illinois ("North State") (collectively,
"Applicants"), all bank holding companies within the
meaning of the Bank Holding Company Act
(12 U.S.C. § 1841 et seq.) ("Act"), have applied for
the Board's approval under section 4(c)(8) of the Act
(12 U.S.C. § 1843(c)(8)) and section 225.21(a) of the
Board's Regulation Y (12 C.F.R. § 225.21(a)) to jointly
establish Interfinancial Funding Corporation, Chicago, Illinois ("Company"), a de novo company.1 Company would engage in commercial finance company
activities, including the making, acquiring and servicing of loans or other extensions of credit for Company's account or for the account of others, and in
factoring. All of the activities proposed by Applicants
are included on the list of permissible nonbanking
activities for bank holding companies in Regulation Y
(12 C.F.R. § 225.25(b)(1)).2
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published (49 Federal Register 21989 (1984)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the public interest factors set forth in
section 4(c)(8) of the Act.
Applicants are affiliated with one another through
common ownership.3 Together they control aggregate
deposits of $687.5 million, which represents 0.7 percent of the total deposits in commercial banks in
Illinois.4 All of Applicants' subsidiary banks operate in
the Chicago banking market.5 If their deposits were
aggregated, Applicants would be the eighth largest of
321 banking organizations in the Chicago banking
market, controlling one percent of the total deposits in
commercial banks therein. It is the Board's judgment
that consummation of this proposal would have no
adverse effects upon competition in any relevant area.
Elk Grove Investment Corporation
Elk Grove Village, Illinois
Financial Investments Corporation
Chicago, Illinois
North State Investment Corporation
Highland Park, Illinois
Order Approving Acquisition of Interfinancial
Funding Corporation
First Highland Corporation, Highland Park, Illinois
("First Highland"), Elk Grove Investment Corporation, Elk Grove Village, Illinois ("Elk Grove"), Financial Investments Corporation, Chicago, Illinois
1. First Highland would own 32 percent of Company's shares,
while Elk Grove, FIC, and North State would own 20.7,16.9, and 10.4
percent, respectively. In addition, Company's President and Chief
Executive Officer, Mr. Lawrence H. Tayne, would control 20 percent
of Company's shares.
2. Approximately 97 percent of Company's loans would be participated to Applicants' subsidiary banks, as well as to non-affiliated
banks in certain cases. Thus, Company would function primarily as a
loan origination and servicing organization for Applicants' subsidiary
banks, rather than as a credit-extending company.
3. A fifth bank holding company, Woodfield Investment Corporation, Schaumburg, Illinois, is also affiliated with Applicants through
common ownership, but is not participating in this transaction. All
state and market share computations include the deposits of this
affiliate.
4. All banking data are as of June 30, 1983.
5. The Chicago banking market is approximated by Cook, DuPage,
and Lake Counties, all in Illinois.
Legal Developments
Consummation of this proposal may be expected to
result in public benefits inasmuch as Company, a
de novo corporation, would provide an additional and
convenient source of commercial loan services. With
regard to financial considerations, the Board has analyzed the chain organization on a consolidated basis
and has analyzed the individual applicants on a consolidated bank holding company basis pursuant to the
Board's current and proposed guidelines regarding
capital adequacy.6 The Board finds that the level of
Applicants' capitalization is consistent with approval.
The other financial and managerial resources of
Applicants, their subsidiary banks, and Company are
consistent with approval, and there is no evidence in
the record to indicate that consummation of this
proposal would result in undue concentration of resources, unfair competition, conflicts of interests,
unsound banking practices, or other adverse effects on
the public interest.
Based on the foregoing and other facts of record, the
Board concludes that the balance of the public interest
factors it must consider under section 4(c)(8) of the
Act favors approval of the application. Accordingly,
the Board has determined that the application should
be and hereby is approved. This determination is
subject to all 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 such
modification or termination of the activities of a bank
holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with the
provisions and purposes of the Act and the Board's
regulations and orders issued thereunder, or to prevent evasion thereof.
The transaction shall be consummated not later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Chicago,
acting pursuant to delegated authority.
By order of the Board of Governors, effective
August 13, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, and Gramley. Absent and not voting: Governors Rice and Seger.
737
Orders Issued Under Sections 3 and 4 of Bank
Holding Company Act
Bank of Boston Corporation
Boston, Massachusetts
Order Approving Acquisition of a Bank Holding
Company and Companies Engaged in Insurance,
Mortgage Banking, Trust, and Investment
Advisory Activities
Bank of Boston Corporation, Boston, Massachusetts,
a bank holding company within the meaning of the
Bank Holding Company Act of 1956, as amended
(12 U.S.C. § 1841 et seq.) ("Act"), has applied for the
Board's approval under section 3 of the Act (12 U.S.C.
§ 1842), to acquire the successor by merger to RIHT
Financial Corporation, Providence, Rhode Island
("RIHT"), also a bank holding company.1 As a result
of this transaction, Applicant would acquire RIHT's
subsidiary banks, Rhode Island Hospital Trust National Bank and Columbus National Bank of Rhode Island,
both located in Providence, Rhode Island.
In addition, Applicant has applied for the Board's
approval under section 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)) and section 225.23(a)(2) of the Board's
Regulation Y (12 C.F.R. § 225.23(a)(2)) to acquire
RIHT's nonbanking subsidiaries: RIHT Life Insurance Company, Phoenix, Arizona ("RIHT Life Insurance"), which underwrites credit life and credit accident and health insurance directly related to
extensions of credit by subsidiaries of RIHT; RIHT
Mortgage Corporation, Charlotte, North Carolina
("RIHT Mortgage"), which engages in mortgage
banking activities; The Washington Row Company,
Providence, Rhode Island ("Washington Row"), an
inactive company that formerly engaged in mortgage
banking activities; Hospital Trust of Florida, N.A.,
Palm Beach, Florida ("HT Florida"), which engages
in trust company activities; and HT Investors, Inc.,
Providence, Rhode Island ("HT Investors"), which
provides investment advisory services. These activities have been determined by the Board to be closely
related to banking and permissible for bank holding
companies (12 C.F.R. § 225.25(b)(1), (3), (4), and (9)).
WILLIAM W . WILES
[SEAL]
Secretary of the Board
6. "Revision of Regulation Y , " 70 FEDERAL RESERVE BULLETIN
144-145, "Appendix A—Capital Adequacy Guidelines"; and Proposed Rulemaking, "Capital Maintenance" (49 Federal Register
30317 (1984).
1. Applicant has also applied under section 3(a)(1) of the Act
(12 U.S.C. § 1842(a)(1)) for approval for its wholly owned inactive
subsidiary, Rhode Island Holding Company ("RIHC"), to become a
bank holding company by merging with RIHT. RIHC is of no
significance except as a means to facilitate Applicant's acquisition of
the voting shares of RIHT.
738
Federal Reserve Bulletin • September 1984
Notice of these applications, affording opportunity
for interested persons to submit comments, has been
given in accordance with sections 3 and 4 of the Act
(49 Federal Register 11013 (1984)). The time for filing
comments has expired, and the Board has considered
the applications and all comments received in light of
the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1842(c)) and the considerations set forth
in section 4(c)(8) of the Act, including the comments of
a shareholder of RIHT and of Citicorp, New York,
New York, challenging the constitutionality of the
Rhode Island statute under which the proposed acquisition is to be made.
Applicant is, and would remain upon consummation, the largest commercial banking organization in
New England. Applicant, the largest commercial
banking organization in Massachusetts with consolidated assets of $19.5 billion, controls nine banking
subsidiaries holding aggregate domestic deposits of
$6.2 billion in the Commonwealth, representing 20.2
percent of the total deposits in commercial banks in
Massachusetts.2 On March 30, 1984, Applicant consummated its acquisition of Casco-Northern Corporation, Portland, Maine, thereby becoming the second
largest commercial banking organization in Maine. Its
one banking subsidiary in Maine has total domestic
deposits of $631 million, representing 17.9 percent of
the total deposits in commercial banks in Maine.3
RIHT, the second largest commercial banking organization in Rhode Island with consolidated assets of $1.9
billion, controls two subsidiary banks holding aggregate domestic deposits of $1.6 billion, representing
25.9 percent of the total deposits in commercial banks
in Rhode Island.
Applicant's subsidiary banks compete directly with
RIHT's subsidiary banks in two banking markets: the
Providence, Rhode Island, and Fall River, Massachusetts, banking markets. RIHT is the third largest of 17
commercial banking organizations in the Providence
banking market4 with $1.2 billion in deposits therein,
2. Banking data are as of December 31, 1983, unless otherwise
indicated.
3. In addition, on May 18, 1984, the Board approved Applicant's
application to acquire Colonial Bancorp, Inc., Waterbury, Connecticut, which has consolidated assets of $1.4 billion and total domestic
deposits of $1.2 billion. Upon consummation of that acquisition,
Applicant would become the fourth largest banking organization in
Connecticut. The Board has, however, stayed its approval of that
application pending the completion of judicial review of the Board's
Order.
4. The Providence banking market includes all of Rhode Island,
except for the southwestern part of Washington County and the
eastern part of Newport County, and in addition includes the City of
Attleboro and the towns of Blackstone, Millville, North Attleboro,
Norton, Plainville, Rehoboth, and Seekonk in Massachusetts. Market
data for the Providence market is as of June 30, 1982.
representing 15.9 percent of the total deposits in
commercial banks in the market. Applicant is the 15th
largest commercial banking organization in the market
with $7.8 million in deposits, representing 0.1 percent
of the total deposits in commercial banks in the
market. Upon consummation of the proposed transaction, Applicant would become the third largest banking organization in the Providence banking market,
with a market share of approximately 16 percent of the
total deposits in commercial banks in the market.
The proposed acquisition would eliminate some
existing competition in the Providence banking market. The market, however, is not highly concentrated,
with the four largest banking organizations controlling
70.6 percent of the total deposits in commercial banks
and a Herfindahl-Hirschman Index ("HHI") of 1738.
Upon consummation of this proposal, the market's
four-firm concentration ratio would increase to 70.7
percent and the HHI would increase only 3 points, to
1741.5 In view of this small increase in market concentration and of the number and size of the remaining
banking competitors in the market, consummation of
this proposal would not have a significantly adverse
effect on competition in the Providence banking market.
In the Fall River banking market,6 Applicant is the
largest of nine commercial banking organizations in
the market with $96.3 million in deposits therein,
representing 24.9 percent of the total deposits in
commercial banks in the market. RIHT is the eighth
largest commercial banking organization in the market
with $5.7 million in deposits, representing 1.5 percent
of the total deposits in commercial banks in the
market. Upon consummation of this proposal, Applicant would remain the largest commercial banking
organization in the Fall River banking market, with a
market share of approximately 26.3 percent of the
deposits in commercial banks in the market. The Fall
River market is concentrated, with a four-firm concentration ratio of 81.8 percent and an HHI of 1917. Upon
consummation of the proposal, the market's four-firm
concentration ratio would increase to 83.3 percent and
the HHI would increase 75 points to 1992.7
5. Under the Department of Justice Merger Guidelines, a market in
which the post-merger HHI is between 1000 and 1800 is considered
moderately concentrated. In such markets, the Department of Justice
is unlikely to challenge a merger that produces an increase in the HHI
of less than 100 points.
6. The Fall River banking market includes the southwestern part of
Bristol County, Massachusetts, and the towns of Little Compton and
Tiverton in Rhode Island. Market data are as of June 30, 1983.
7. Under the Department of Justice Merger Guidelines, where the
post-merger HHI is 1800 or more, the Department will decide on a
case-by-case basis whether to challenge a merger that produces an
increase in the HHI of between 50 and 100 points.
Legal Developments
Although consummation of the proposed transaction would eliminate existing competition in the Fall
River banking market, there are a number of factors
that mitigate the anticompetitive effects of this proposal. Eight commercial banks would continue to operate
in the market after consummation, including the largest banking organizations in Massachusetts and Rhode
Island. The Board also has considered the influence of
thrift institutions in evaluating the competitive effects
of this proposal.8 In the Fall River market, thrift
institutions control approximately 62 percent of the
total deposits in the market, and the deposits of each
of the three largest thrift institutions are substantially
larger than those held by the largest commercial bank
in the market. All six thrift institutions in the market
offer a full range of consumer banking services. In
addition, all six make commercial real estate loans,
and five of the six engage in limited commercial
lending activities. Based upon the size and activities of
thrift institutions in the Fall River banking market, the
Board concludes that thrift institutions exert a significant competitive influence that substantially mitigates
the anticompetitive effects of the proposed transaction.9
After consideration of the above facts and other
facts of record, the Board concludes that consummation of this proposal would not have a significant
adverse effect on existing competition in any relevant
market.
The Board has considered the effects of this proposal on probable future competition and also has examined the proposal in light of the Board's proposed
guidelines for assessing the competitive effects of
market-extension mergers or acquisitions.10 In evaluating the effects of a proposal on probable future
competition, the Board considers market concentration, the number of probable future entrants into the
market, the size of the bank to be acquired, and the
attractiveness of the market for entry on a de novo or
foothold basis absent approval of the acquisition.
After consideration of these factors in the context of
the specific facts of this case, the Board concludes that
consummation of this proposal would not have any
8. The Board has previously determined that thrift institutions have
become, or at least have the potential to become, major competitors of
commercial banks. NCNB Bancorporation, 70 FEDERAL RESERVE
BULLETIN 225 (1984); Sun Banks,
Inc.,
69 FEDERAL RESERVE BULLE-
TIN 934 (1983); First Tennessee National Corporation, 69 FEDERAL
739
significant adverse effects on probable future competition in any relevant market.
There are nine banking markets in Massachusetts
and fourteen in Maine in which Applicant, but not
RIHT, competes.11 With respect to the nine Massachusetts banking markets in which Applicant operates,
in eight of these markets the record discloses more
than six commercial banking organizations as probable
future entrants into each of the markets. The ninth
Massachusetts banking market, the Boston market, is
not highly concentrated. With respect to the fourteen
Maine banking markets in which only Applicant competes and the seven Connecticut banking markets into
which Applicant's entry has been approved by the
Board, the record discloses numerous commercial
banking organizations as probable future entrants into
each of these markets. On the basis of these considerations and other facts of record, the Board concludes
that the elimination of RIHT as a probable future
entrant into markets served by Applicant would not
have a substantial anticompetitive effect in any of
those markets.
There is one banking market in Rhode Island (Newport) and one in Connecticut (New London) in which
RIHT, but not Applicant, competes. With respect to
these two banking markets, the record shows that
neither market is highly concentrated. On the basis of
this consideration and other facts of record, the Board
concludes that elimination of Applicant as a probable
future entrant into markets served by RIHT would not
have a substantial anticompetitive effect in any of
those markets.
The financial and managerial resources and future
prospects of Applicant and RIHT are consistent with
approval of this application. Considerations relating to
the convenience and needs of the communities to be
served also are consistent with approval of the application.
Section 3(d) of the Act prohibits the Board from
approving any application by a bank holding company
to acquire any bank located outside of the state in
which the operations of the bank holding company's
banking subsidiaries are principally conducted, unless
such acquisition is "specifically authorized by the
statute laws of the State in which such bank is located,
by language to that effect and not merely by implication." (12 U.S.C. § 1842(d)). Based upon its review of
the Rhode Island interstate banking statute,12 the
Board concludes that Rhode Island has by statute
RESERVE BULLETIN 298 (1983).
9. If 50 percent of thrift deposits were included in the calculation of
market concentration, the HHI would rise by only 22 points upon
consummation of this proposal, from 1037 to 1059.
10. 47 Federal Register 9017 (March 3, 1982). Although the proposed Policy Statement has not been adopted by the Board, the Board
is using the proposed guidelines in its analysis of the effects of a
proposal on probable future competition.
11. In addition, upon
Colonial Bancorp, Inc.,
markets in Connecticut,
12. 1983 R.I. Pub. L.
consummation of Applicant's acquisition of
Applicant would compete in seven banking
in none of which RIHT competes.
Ch. 201.
740
Federal Reserve Bulletin • September 1984
expressly authorized, within the meaning of the Douglas Amendment, a Massachusetts bank holding company, such as Applicant, to acquire a Rhode Island
bank or bank holding company, such as RIHT.13
This application raises a question under the United
States Constitution concerning the constitutionality of
a provision of the Rhode Island interstate banking
statute that bars bank holding companies located outside of New England from acquiring banks in Rhode
Island.14 The Board has addressed the constitutionality of parallel Connecticut and Massachusetts statutes
in its Orders approving three previous interstate acquisitions under those statutes.15 In its Bank of New
England Corporation Order, after review of the record
and in reliance on a detailed analysis of the constitutional issues included in an Appendix to the Order, the
Board concluded that, while the issue was not free
from doubt, there was no clear and unequivocal basis
for a determination that the Connecticut statute is
inconsistent with the Constitution.16
Subsequent to the Board's approval of the three
prior applications under the Connecticut and Massachusetts interstate banking laws, protestants in each
case sought judicial review of the Board's Orders on
the sole ground that the Connecticut and Massachusetts interstate banking laws are unconstitutional. Following expedited review of the issues, the United
States Court of Appeals for the Second Circuit issued
an opinion in Northeast Bancorp, Inc. v. Board of
Governors of the Federal Reserve System, Nos. 844047, 84-4051, 84-4053, and 84-4081 (2d Cir. Aug. 1,
1984), rejecting the petitioners' constitutional challenges to the New England statutes and affirming the
Board's Orders. The constitutional issues involved in
BBC's current application are the same as those
resolved by the Second Circuit.17
13. See Bank of New England Corporation, 70 FEDERAL RESERVE
BULLETIN 374, 375 (1984), and Bank of Boston Corporation, 70
FEDERAL RESERVE BULLETIN 524 (1984). In these cases, an identical
finding was made with respect to the parallel Connecticut interstate
banking statute.
14. New England bank holding companies include those located in
Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island,
and Vermont.
15. Bank of New England Corporation, supra; Bank of Boston
Corporation, supra; Hartford National Corporation, 70 FEDERAL
In addition to seeking judicial review, the protestants to the Bank of New England Corporation and
Hartford National Corporation applications obtained a
stay of the Board's Orders from the Second Circuit
pending that Court's consideration of those cases. In
addition, following Citicorp's petition to the Board to
stay its Order approving Bank of Boston Corporation's application to acquire Colonial Bancorporation,
the Board issued a stay in reliance on the courtimposed stay in the previous cases.
Following the Second Circuit's decision in Northeast Bancorp, the Court on August 9 imposed a stay of
its decision pending the Supreme Court's review of
these cases. As a result of the Court's action, the prior
interstate transactions approved by the Board may not
be consummated until final action by the Supreme
Court. The Board, therefore, has considered whether
to stay the effectiveness of its action on this application pending such final judicial action. The protestants
in this case have not requested a stay, and, under
5 U.S.C. § 705, the Board's authority to stay its action
absent a petition for judicial review is not clear.
Consequently, the Board has determined not to stay,
on its own motion, the effectiveness of its decision in
this case.
Applicant has also applied, under section 4(c)(8) of
the Act, to acquire the nonbanking subsidiaries of
RIHT: RIHT Mortgage, RIHT Life Insurance, HT
Florida, HT Investors, and Washington Row.18 RIHT
Mortgage, which engages in mortgage banking activities, competes directly with mortgage banking subsidiaries of Applicant in the following markets: Boston,
Massachusetts, Raleigh, North Carolina, and Atlanta,
Georgia. RIHT Mortgage's market share of mortgage
originations is not significant in any of these markets,
and each market is unconcentrated in mortgage banking and has low barriers to entry in that product
market. Thus, Applicant's acquisition of RIHT Mortgage would not eliminate any significant competition
in any relevant market.
HT Florida provides personal trust services in Palm
Beach County, Florida. Applicant engages in similar
activities in Florida through its subsidiaries, Bank of
Boston Trust Company of Southeast Florida, N.A.,
Deerfield Beach, Florida (which also competes in
Palm Beach County), and Bank of Boston Trust Com-
RESERVE BULLETIN 353 (1984).
16. Bank of New England Corporation, supra, 70 FEDERAL RESERVE BULLETIN at 376. It is the Board's policy that it will not hold a
state law unconstitutional in the absence of clear and unequivocal
evidence of the inconsistency of the state law with the United States
Constitution. See NCNB Corp., 68 FEDERAL RESERVE BULLETIN 54,
56 (1982).
17. The only significant difference between the Rhode Island statute and the other two New England interstate statutes is that the
Rhode Island statute terminates its provision restricting reciprocal
interstate banking to other New England states on July 1, 1986, while
the Massachusetts and Connecticut statutes have no such termination
date. To the extent this fact alters the analysis of the Rhode Island
statute, it adds an argument in favor of that statute's constitutionality
not present in the analysis of the other two statutes.
18. Washington Row is currently inactive and will be liquidated by
Applicant.
Legal Developments
pany of Southwest Florida, N.A., Sarasota, Florida.
Together, Applicant's and RIHT's Florida trust subsidiaries manage total combined assets of $85 million.
The combined market share of Applicant and RIHT in
any relevant market is quite small, and the Florida
market for trust services is highly competitive, with
numerous competitors and low barriers to entry. Accordingly, consummation of this proposal would have
little effect on competition for trust services in any
relevant market.
After consideration of the above facts and other
facts of record, the Board concludes that Applicant's
acquisition of RIHT's nonbanking subsidiaries would
not have a significant adverse effect on competition in
any market. Furthermore, there is no evidence in the
record to indicate that approval of this proposal would
result in undue concentration of resources, unfair
competition, conflicts of interest, unsound banking
practices, or other adverse effects on the public interest. Accordingly, the Board has determined that the
balance of the public interest factors it must consider
under section 4(c)(8) of the Act is favorable and
consistent with approval of the application to acquire
RIHT's nonbanking subsidiaries.
Based on the foregoing and other facts of record, the
Board has determined that the applications under
sections 3 and 4 of the Act should be and hereby are
approved. The acquisition of RIHT's bank subsidiaries 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. The approval
of Applicant's proposal to acquire RIHT's nonbanking
activities is 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
August 20, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Rice, Gramley, and Seger. Governor
Wallich abstained from the insurance portion of these applications.
741
Centennial Beneficial Corp.
Orange, California
Order Approving Formation of a Bank Holding
Company and Retention of Nonbanking Subsidiaries
Centennial Beneficial Corp., Orange, California, has
applied fdr the Board's approval under section 3(a)(1)
of the Bank Holding Company Act ("Act")(12 U.S.C.
§ 1842(a)(1)) to become a bank holding company by
acquiring Sunwest Bank, Tustin, California ("Sunwest
Bank"), and Sacramento First National Bank, Sacramento, California ("Sacramento Bank").
Applicant has also applied for the Board's approval
under section 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)) and section 225.23(a) of Regulation Y
(12 C.F.R. § 225.23(a)), to engage in the activities of
making, acquiring, and servicing loans and operating
an industrial bank. These activities would be conducted through Applicant's existing subsidiaries, Centennial Beneficial Mortgage Company ("Mortgage Company"), Centennial Beneficial Loan Company ("Loan
Company"), and Centennial Mortgage Income Fund
("CMIF"), all of Orange, California, Heritage Thrift
and Loan Company ("Heritage"), and Chancellor
Financial Services, Inc. ("Chancellor"), both of Brea,
California. Mortgage Company and Chancellor are
currently engaged in the activity of making, acquiring
and servicing loans, while Loan Company, currently
inactive, and CMIF, currently in organization, would
engage in the activities of making, acquiring and
servicing loans upon consummation of these proposals. Heritage is engaged in the activities of a California
thrift and loan company (an entity similar to an industrial bank). The Board has previously determined that
these activities are closely related to banking and are
permissible for bank holding companies (12 C.F.R.
§ 225.25(b)(1) and (2)).
Notice of the applications, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with sections 3 and 4 of the
Act. 49 Federal Register 17091 (April 23, 1984). The
time for filing comments has expired, and the Board
has considered the applications and all comments
received in light of the factors set forth in section 3(c)
of the Act (12 U.S.C. § 1842(c)) and the considerations
specified in section 4(c)(8) of the Act.
Applicant, a financial services holding company,
has no banking subsidiaries. Sunwest Bank, with total
deposits of approximately $142 million,1 is one of the
JAMES MCAFEE
[SEAL]
Associate Secretary of the Board
1. Banking data are as of June 30, 1984, unless otherwise indicated.
742
Federal Reserve Bulletin • September 1984
smaller commercial banks in the state of California.
Sacramento Bank is a de novo bank in organization.
Consummation of this proposal would have no significant effect on the concentration of banking resources
in California.
Sunwest Bank is one of the smaller banks in the Los
Angeles banking market.2 While neither Applicant nor
its principals currently competes in commercial banking in the Los Angeles market, Applicant, through
Mortgage Company, Chancellor, and Heritage, competes with Sunwest for loans in the Los Angeles
banking market. Further, Applicant, through Heritage, competes with Sunwest for thrift accounts in the
Los Angeles banking market. Some competition
would be eliminated between Sunwest Bank and Applicant upon consummation of this proposal. However, in view of the small shares of loans and thrift
accounts held by these entities in the Los Angeles
banking market, Applicant's acquisition of Sunwest
Bank would have no significant effect on competition
in that market.
Sacramento Bank will be located in the Sacramento
banking market.3 The formation of Sacramento Bank
would add a new source of banking services to the
Sacramento banking market, and increase competition
in that banking market.
The financial and managerial resources of Applicant, its subsidiaries, Sunwest Bank, and Sacramento
Bank are regarded as generally satisfactory and their
prospects appear favorable, especially in light of Applicant's commitment to inject capital into Sunwest
Bank. As discussed above, the formation of Sacramento Bank will add a new source of banking services
in the Sacramento banking market. Accordingly, considerations relating to the convenience and needs of
the communities are consistent with approval of the
applications.
Applicant has committed to the Board that Heritage,
which currently engages in making commercial loans,
will not accept demand deposits, including NOW
accounts, without the prior approval of the Board.
Accordingly, Heritage would not be a "bank" within
the meaning of section 2(c) of the Act (12 U.S.C.
§ 1841(c)). In recent cases involving the acquisition of
nonbank banks and industrial banks,4 the Board relied
on several conditions that were designed to prevent
certain linkages between nonbank banks, industrial
banks, and applicants. However, such conditions appear to be unnecessary in this case because Applicant
could acquire a full service bank in California.
There is no evidence in the record to indicate that
Applicant's proposal to engage in nonbanking activities through Mortgage Company, Loan Company,
CMIF, Heritage, and Chancellor would result in any
undue concentration of resources, decreased or unfair
competition, conflicts of interests, unsound banking
practices, or other adverse effects on the public interest. Accordingly, the Board has determined that the
balance of public interest factors that it must consider
under section 4(c)(8) is favorable and consistent with
approval of the applications.
On the basis of the record of the applications and the
foregoing, including the commitments made by Applicant, the Board has determined that consummation of
the proposal would be in the public interest and that
the applications under sections 3(a)(1) and 4(c)(8) of
the Act should be and hereby are approved. This
determination is subject to the conditions set forth in
this Order and in section 225.4(d) and 225.23(b) of
Regulation Y (12 C.F.R. §§ 225.4(d) and 225.23(b)),
and the Board's authority to require such modification
or termination of the activities of a bank holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance with the provisions
and purposes of the Act and the Board's regulations
and orders issued thereunder, or to prevent evasion
thereof.
The acquisition of Sunwest Bank and Sacramento
Bank shall not be consummated before the thirtieth
calendar day following the effective date of this Order,
nor shall the transactions be consummated later than
three months after the effective date of this Order, and
Sacramento Bank shall be opened for business not
later than six months after the effective date of this
Order, unless such periods are extended for good
cause by the Board or the Federal Reserve Bank of
San Francisco, pursuant to delegated authority.
By order of the Board of Governors, effective
August 20, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, Rice, Gramley, and Seger.
JAMES MCAFEE
[SEAL]
2. The Los Angeles banking market is defined as the Los Angeles
RMA.
3. The Sacramento banking market is defined as the Sacramento
RMA.
Associate Secretary of the Board
4. Nevada First Development Corporation, 70 FEDERAL RESERVE
BULLETIN 469 (1984); U.S.
BULLETIN 371 (1984).
Trust Company,
70 FEDERAL RESERVE
Legal Developments
National City Corporation
Cleveland, Ohio
Order Approving the Merger of Bank Holding
Companies and the Acquisition of Companies
Engaged In Leasing, Insurance, Mortgage Banking,
Trust Services, Investment Advice and Equity
Financing Activities
National City Corporation, Cleveland, Ohio, a bank
holding company within the meaning of the Bank
Holding Company Act ("Act"), has applied for the
Board's approval under section 3(a)(5) of the Act
(12 U.S.C. § 1842(a)(5)), to merge with BancOhio
Corporation, Columbus, Ohio ("BOC"), and thereby
indirectly to acquire BancOhio National Bank, and
The Ohio State Bank, both of Columbus, Ohio.
Applicant also has applied for the Board's approval
under section 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)) and section 225.23(a)(2) of the Board's
Regulation Y (12 C.F.R. § 225.23(a)(2)), to acquire the
following nonbank subsidiaries of BOC: Franklinton
Assurance Company, Columbus, Ohio, engaged in the
reinsurance of credit life insurance directly related to
extensions of credit by banking subsidiaries of BancOhio; BancOhio Mortgage Company, with offices in
Columbus, Akron, Cleveland, Cincinnati, and Dayton,
Ohio, engaged in residential mortgage banking activities; W. Lyman Case and Company, with offices in
Columbus, Ohio, and Miami, Florida, engaged in
commercial mortgage banking activities; BancOhio
Leasing Company, Columbus, Ohio, engaged in originating and servicing leases for BancOhio National
Bank; Midwest Econometrics, an inactive company
that formerly engaged in investment advice activities;
and Plaza Trust Company, Columbus, Ohio, engaged
in trust company activities. These activities have been
determined by the Board to be closely related to
banking and permissible for bank holding companies
(12 C.F.R. § 225.23(b)(1), (3), (4), (5), (9), and (14)).
Notice of the applications, affording opportunity for
interested persons to submit comments, has been
given in accordance with sections 3 and 4 of the Act
(49 Federal Register 21990 and 29688 (May 24 and July
23, 1984)). The time for filing comments has expired,
and the Board has considered the applications and all
comments received in light of the factors set forth in
section 3(c) of the Act (12 U.S.C. § 1842(c)) and the
considerations specified in section 4(c)(8) of the Act.1
Applicant is the fourth largest commercial banking
organization in Ohio with 12 subsidiary banks that
1. The Board received comments from the Akron Coalition for
Community Reinvestment, Akron, Ohio ("ACCR"). In 1982, ACCR
protested Applicant's application to acquire Goodyear Bank, Akron,
743
control aggregate deposits of $4.3 billion,2 representing 8.4 percent of total deposits in commercial banks in
the state. BOC is the second largest commercial
banking organization in the state, with two banking
subsidiaries that control aggregate deposits of $4.9
billion, representing 9.4 percent of total deposits in
commercial banks in the state. Upon consummation of
the proposed acquisition and all planned divestitures,
Applicant's share of total deposits in commercial
banks in the state would increase to approximately $9
billion, representing 17.2 percent of statewide deposits, and Applicant would become the largest commercial banking organization in the state.
Although the Board is concerned about the effect of
the merger of the second and fourth largest commercial banking organizations in Ohio on the concentration of banking resources within the state, certain
circumstances mitigate that concern. Following consummation of the proposal, the share of commercial
bank deposits held by the four largest commercial
banking organizations in Ohio would increase to 45.7
percent and Ohio would remain only moderately concentrated. In addition, 10 other multibank holding
companies with deposits over $1 billion would remain
after consummation of the proposal.
Applicant's subsidiary banks compete directly with
BOC's subsidiary banks in nine banking markets: the
Akron, Canton, Cleveland, Columbus, Dayton, Fulton, Salem, Sandusky, and Toledo banking markets.
In three of these markets, Salem, Sandusky and Fulton,3 Applicant will divest all of BOC's banking of-
Ohio (renamed National City Bank, Akron ("NCB-A")), challenging
the community reinvestment records of Applicant's lead bank in
Cleveland and of the Goodyear Bank. ACCR has asked the Board to
"closely review" this application, indicating that Applicant has made
"little progress" in its lending practices in Akron. The Board has
reviewed the submissions of ACCR, Applicant's response, NCB-A's
Home Mortgage Disclosure Act data, and its CRA examination
reports. This review indicates that since 1983 Applicant has increased
its lending to low- and moderate-income neighborhoods in the Akron
market at a time when NCB-A's total loan volume was falling and
lending by other institutions to such neighborhoods was declining.
Moreover, when the Board approved Applicant's 1982 application,
the Board accepted certain commitments by Applicant with regard to
Goodyear Bank's future operations. The record indicates that these
commitments, which include increased advertising in low- and moderate-income neighborhoods, financial counseling for community residents, increased attendance at community meetings by Applicant's
personnel, and increased input from community groups in Applicant's
community, have been met by Applicant.
2. Unless otherwise indicated, deposit data are as of December 31,
1983.
3. The Salem banking market is approximated by the northern twothirds of Columbiana County plus Green, Goshen and a portion of
Beaver Township in Mahoning County. The Sandusky banking market is approximated by all of Erie County except the City of
Vermilion. The Fulton County banking market is approximated by all
of Fulton County, except the eastern half of Swan Creek Township
and the southeastern quadrant of Fulton Township, and the southern
half of Seneca, Fairfield, and Ogden Townships in Lenawee County,
Michigan.
744
Federal Reserve Bulletin • September 1984
fices.4 Applicant has committed that all of the proposed divestitures will take place on or before the date
of consummation of the proposed merger.5 Applicant
also has committed to divest its bank, The Fairfield
National Bank of Lancaster, that operates in the
Columbus market.6 Therefore, the Board finds that
consummation of this proposal would have no significant adverse effect upon competition in these markets.
In the Akron banking market,7 Applicant proposes
to divest 16 of BOC's 30 banking offices.8 Applicant is
the fourth largest commercial banking organization in
the market, with 12 offices that control total deposits
of $241.5 million, representing 9.4 percent of the total
deposits in commercial banks in the market. Currently, BOC is the market's third largest commercial
banking organization, with $448.9 million in deposits,
representing 17.6 percent of the total deposits in
commercial banks in the market. The Akron banking
market contains 11 banks and is highly concentrated,
with the four largest commercial banking organizations in the market controlling 79.2 percent of the
deposits in commercial banks in the market. After
consummation of the proposed divestiture, Applicant
would control approximately 21.7 percent of the total
deposits in commercial banks in the market, and the
4. Applicant proposes to divest the Salem offices of BOC to the
Potters Bank and Trust Company, East Liverpool, Ohio. Toledo
Trustcorporation, Toledo, Ohio ("Toledo"), through its subsidiaries,
First Buckeye Bank, N.A., Mansfield, Ohio and Maumee Valley
National Bank, Defiance, Ohio, would acquire BOC's Sandusky and
Fulton County offices, respectively. The Board is concerned that
Toledo's acquisition of the Fulton County offices would cause its
share of deposits in the market to increase from 8.9 percent to 19.7
percent, and would cause the HHI to increase by 192 to 2344. The
Board's concerns are mitigated, however, by the presence of four
thrift institutions in the market, two of which, the third and fifth
largest competitors in the market, actively engage in making commercial loans. In addition, Applicant solicited bids for the purchase of the
Fulton branches from a total of 44 commercial banking organizations,
thrift institutions and investors in Ohio. Of the two bids received,
Toledo's bid was the least anticompetitive.
5. The Board's policy with regard to divestitures requires that
divestitures intended to cure the anticompetitive effects resulting from
a merger or acquisition occur on or before the date of consummation
of the merger. Barnett Banks of Florida, Inc., 68 FEDERAL RESERVE
BULLETIN 190 (1982); InterFirst
BULLETIN 243 (1982).
Corporation,
68 FEDERAL RESERVE
6. The Columbus banking market is approximated by all of Franklin, Fairfield, Licking, Delaware, and Pickaway Counties plus Perry
Township in Hocking County and Thorn Township in Perry County.
Based upon the particular facts and circumstances of this case, the
Board believes that Applicant's commitment to divest its bank
promptly is sufficient to alleviate its concerns regarding the competitive effects of the proposed merger.
7. The Akron banking market is defined as the southern two-thirds
of Summit and Portage Counties, southern Medina County, Milton
and Chippewa townships in Wayne County and Lawrence and the
western half of Lake Township in Stark County.
8. Society National Bank, a subsidiary of Society Corporation, will
acquire the 16 offices, representing 5.3 percent of the market's
deposits. Society currently controls 2.8 percent of the deposits in
commercial banks in the market and upon consummation would
control 8.1 percent of the market's deposits. All market deposit data
are as of June 30, 1982.
share of deposits held by the market's four largest
commercial banking organizations would increase to
82.5 percent.
The Board has considered the presence of 20 thrift
institutions in the market that hold deposits of $1.6
billion, which is approximately 38.4 percent of the
total deposits in the market. The Board has previously
indicated that thrift institutions have become, or at
least have the potential to become, major competitors
of commercial banks.9 Thrift institutions already exert
a considerable competitive influence in the market as
providers of NOW accounts and consumer loans, and
many also are engaged in the business of making
commercial loans.10 Based upon the number, size and
market shares of these institutions in the Akron market, the Board has concluded that thrift institutions
exert a significant competitive influence that substantially mitigates the anticompetitive effects of this
proposal.
Applicant and BOC compete in four markets in
which no divestitures are proposed: the Canton,
Cleveland, Dayton, and Toledo banking markets. Although consummation of this proposal would eliminate
some existing competition between Applicant and
BOC in these markets, certain facts of record mitigate
the competitive effects of the proposal in these markets. In the Canton banking market,11 Applicant controls only 0.2 percent of total deposits in commercial
banks in the market, and BOC controls only 1.3
percent of market deposits. Upon consummation, Applicant would become the eighth largest banking organization and its market share would increase to 1.5
percent. The Herfindahl-Hirschman Index ("HHI")
would increase by only five points as a result of the
proposal.
In the Toledo banking market, Applicant controls
the third largest commercial banking organization in
the market, with 18.1 percent of the deposits in
commercial banks in the market.12 BOC controls ap9. The Chase Manhattan Corporation, 70 FEDERAL RESERVE BULLETIN 529 (1984); NCNB Bancorporation, 70 FEDERAL RESERVE
BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL
RESERVE BULLETIN 802 (1983); First Tennessee National Corporation, 69 FEDERAL RESERVE BULLETIN 298 (1983).
10. If 25 percent of the deposits in thrift institutions in the Akron
banking market are included in the calculation of market concentration, the share of total deposits held by the four largest organizations
in the market is 71.4 percent and Applicant's combined share would
be 18.8 percent.
11. The Canton banking market is approximated by all of Stark
County, except Lawrence and the western half of Lake Township;
Smith Township in Mahoning County ; the northern tier of Carroll
County; and Lawrence and Sandy Townships in Tuscarawas County.
12. The Toledo banking market is approximated by all of Lucas and
Wood Counties, plus the eastern half of Swan Creek Township and
the southeastern quadrant of Fulton Township in Fulton County; the
western third of Ottawa County; Woodville Township in Sandusky
County, Ohio; and Whiteford, Bedford and Erie Townships in Monroe
County, Michigan.
Legal Developments
proximately 1.6 percent of market deposits. The market is moderately concentrated, with an HHI of 1707.
After consummation, Applicant would become the
second largest commercial banking organization in the
market, with a market share of approximately 19.7
percent. Eighteen commercial banks would continue
to operate in the market after consummation of the
proposal and the HHI would increase by only 59
points.13
The Dayton banking market is concentrated, with an
HHI of 1866 and the four largest commercial banking
organizations controlling 77 percent of total deposits in
commercial banks in the market.14 Applicant controls
the third largest commercial banking organization in
the market, with 16.4 percent of the deposits in
commercial banks in the market. BOC controls 1.4
percent of market deposits. After consummation, Applicant's rank would remain the same, and Applicant
would control approximately 17.8 percent of the deposits in commercial banks in the market. Nineteen
commercial banks would continue to operate in the
market after consummation of the proposal and the
HHI would increase by only 44 points.
In the Cleveland banking market,15 Applicant is the
market's second largest commercial banking organization with deposits of $2.2 billion, representing 19.3
percent of total deposits in commercial banks in the
market. BOC is the market's eighth largest commercial banking organization with $281.3 million in deposits, representing 2.4 percent of total deposits in commercial banks in the market. After consummation of
the proposal, Applicant would control 21.7 percent of
total deposits in commercial banks in the market.
The Cleveland banking market is considered to be
moderately concentrated. The HHI in the market is
1603 and would increase by 93 points to 1696 upon
consummation of the proposal. Although consummation of this proposal would eliminate some existing
competition between Applicant and BOC in the Cleveland market, 20 other commercial banking organizations would continue to operate in the market after
consummation of this proposal. In addition, the presence of 35 thrift institutions, some of which are
13. Under the Department of Justice Merger Guidelines, a market
in which the post-merger HHI is between 1000 and 1800 is considered
moderately concentrated. In such markets, the Department is unlikely
to challenge an acquisition that results in an increase in the HHI of
less than 100 points.
14. The Dayton banking market is approximated by all of Montgomery, Greene and Miami Counties; Bethel and Mad River Townships in Clark County; and Clear Creek, Massie and Wayne Townships in Warren County.
15. The Cleveland banking market is approximated by all of Cuyahoga, Lake, Lorain and Geauga Counties; all but the southernmost
tier of townships in Medina County; the northwestern corner of
Portage County; the northern tier of townships in Summit County; and
the City of Vermilion in Erie County.
745
actively engaged in commercial lending, mitigates the
competitive effects of the transaction. These institutions hold combined deposits of $9.2 billion, or approximately 44.1 percent of total deposits in the market. As noted above, the Board has previously
indicated that thrift institutions have become, or at
least have the potential to become, major competitors
of commercial banks. Based upon the number, size
and market shares and commercial lending activity of
thrift institutions in the Cleveland market, the Board
has concluded that thrift institutions exert a significant
competitive influence that mitigates the anticompetitive effects of this proposal in the Cleveland market.
On the basis of the above facts and other facts of
record, the Board concludes that the effects of consummation of the proposal would not have a substantial adverse effect on existing competition in the Canton, Cleveland, Dayton, or Toledo banking markets.
The Board has considered the effects of this proposal on probable future competition in the 31 markets in
which only one of the two holding companies competes and in the four markets in which divestitures will
occur in light of its proposed guidelines for assessing
the competitive effects of market extension mergers
and acquisitions.16 In evaluating the effects of a proposed merger or consolidation upon probable future
competition, the Board considers market concentration, the number of probable future entrants into the
market, the size and market position of the bank to be
acquired and the attractiveness of the market for entry
on a de novo or foothold basis, absent approval of the
acquisition.
Of the 35 relevant markets, 33 have more than six
probable future entrants and thus none of these markets would require intensive analysis under the
Board's proposed guidelines. Moreover, 22 of the 31
markets contain fewer than $250 million in deposits
and thus are not considered markets that are attractive
for de novo or toehold expansion. The remaining two
markets are not considered concentrated and thus the
doctrine of probable future competition is not applicable in these markets.
After consideration of these factors in the context of
the specific facts of this case, the Board concludes that
consummation of this proposal would not have any
significant adverse effects on probable future competition in any relevant market.
In evaluating this application, the Board has considered the financial and managerial resources of Appli16. "Policy Statement of the Board of Governors of the Federal
Reserve System for Assessing Competitive Factors Under the Bank
Merger Act and the Bank Holding Company Act," 47 Federal
Register 9017 (March 3, 1982). While the proposed policy statement
has not been approved by the Board, the Board is using the policy
guidelines as part of its analysis of the effect of a proposal on probable
future competition.
746
Federal Reserve Bulletin • September 1984
cant and the effect on these resources of the proposed
merger with BOC. 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 where a significant acquisition is proposed.17
The acquisition of BOC represents a sizeable transaction for Applicant, one that would almost double
Applicant's size in terms of total assets. Financing for
the proposed acquisition would be provided in part by
the issuance of Applicant's equity securities, but a
substantial portion of the purchase price would be
debt-financed. Applicant's and BOC's existing primary and total capital ratios (even after excluding
goodwill) are well above the minimum levels specified
in both the Board's current18 and proposed Capital
Adequacy Guidelines.19 Consummation of the proposed merger, however, would decrease significantly
Applicant's primary capital ratio. Applicant already
has a substantial amount of goodwill and this acquisition would increase that amount further. If goodwill is
excluded, Applicant's primary capital ratio, on a pro
forma basis, would be slightly above that required
under the Board's current Guidelines, but would fall
below that contemplated under the proposed Guidelines.
The Board views with concern any decline in capital
of the magnitude proposed here, particularly when,
after consummation of the proposal, an applicant's pro
forma capital ratios will be close to the minimum level
specified in the Board's Guidelines, or where goodwill
will be a significant factor in an applicant's capital
base. The Board expects bank holding companies
contemplating expansion proposals to ensure that pro
forma capital ratios exceed the Board's minimum
standards and without significant reliance on goodwill.
In considering this proposal, the Board noted that
Applicant has historically maintained a strong capital
position, and will remain in overall sound financial
condition with a capital position that is generally
consistent with the Board's Guidelines. In addition,
Applicant recognizes that its pro forma capital ratios
are lower than the ratios it has maintained in the past,
and has indicated that because a strong capital position
continues to be a primary objective of management, it
intends to augment its capital following the acquisition
and will provide the Federal Reserve System with
plans to strengthen its capital position. Based on these
17. Chase Manhattan
TIN 529 (1984); Banks
Corporation,
of Mid-America,
70 FEDERAL RESERVE BULLEInc.,
70 FEDERAL RESERVE
BULLETIN 460 (1984); Manufacturers Hanover Corporation, 70 FEDERAL RESERVE BULLETIN 452 (1984); NCNB
AL RESERVE BULLETIN 49 (1983).
Corporation,
69 FEDER-
18. Capital Adequacy Guidelines, (12 C.F.R. Part 225, Appendix A).
19. Proposed Minimum Capital Guidelines for Bank Holding Companies, 49 Federal Register 30317 (July 30, 1984).
and other facts of record, including the current and pro
forma financial condition of Applicant, the Board
concludes that the financial and managerial resources
and future prospects of Applicant, BOC and the combined organization are consistent with approval.
With regard to considerations relating to the convenience and needs of the communities to be served, the
Board finds that such factors also are consistent with
approval of the application.
Applicant also has applied, pursuant to section
4(c)(8) of the Act, to acquire Franklinton Assurance
Company, Columbus, Ohio ("Franklinton"), a wholly
owned subsidiary of BOC which engages in the reinsurance of credit-related insurance associated with
loans by BOC's subsidiary banks. Although Applicant
currently engages in the the reinsurance of creditrelated insurance, no adverse competitive effect would
result from this acquisition because the activities of
Franklinton would be limited to insurance directly
related to extensions of credit made by the subsidiaries
of BOC. Applicant also has applied to acquire
BancOhio Mortgage Corporation, Columbus, Ohio
("BOC Mortgage"), a company that engages in residential mortgage banking activities in Ohio and
W. Lyman Case and Company, Columbus, Ohio, a
company that engages in mortgage banking activities
with regard to commercial real estate. Applicant presently engages in mortgage banking activities through
its subsidiary banks in five of the markets where BOC
Mortgage operates. There are numerous other competitors in these markets, however, and Applicant's acquisition of BOC Mortgage would not eliminate any
significant competition in any relevant market.
Applicant has applied to acquire BancOhio Leasing
Company, Columbus, Ohio, a company that engages
in the leasing of personal property. Applicant also
proposes to acquire Plaza Trust Company, Columbus,
Ohio, an inactive company that is chartered to provide
custodial, trust management and other fiduciary services. Applicant also engages in the leasing of personal
property and trust company activities. Numerous
bank and nonbank entities compete in these areas, and
there is little direct competition between Applicant
and BOC in this regard. Applicant also has applied to
acquire Midwest Econometrics, Columbu:, Ohio, an
inactive company that formerly provided economic
data and forecasts for its subscribers. Applicant does
not engage in this activity, and thus its acquisition will
not eliminate any existing competition.
Accordingly, it does not appear that Applicant's
acquisition of these nonbanking subsidiaries would
have any significant adverse effects upon competition
in any market. Furthermore, there is no evidence in
the record to indicate that approval of this proposal
would result in undue concentration of resources,
decreased or unfair competition, conflicts of interests,
Legal Developments
unsound banking practices, or other adverse effects on
the public interest. Accordingly, the Board has determined that the balance of the public interest factors it
must consider under section 4(c)(8) of the Act is
favorable and consistent with approval of the application to acquire BOC's nonbanking subsidiaries.
Based on the foregoing and other facts or record, the
Board has determined that the applications under
sections 3 and 4 of the Act should be and hereby are
approved, subject to Applicant's commitments to divest branches of BOC in the Akron, Fulton, Salem,
and Sandusky markets, and its bank in the Columbus
market. The merger with BOC shall not be consummated before the thirtieth calendar day following the
effective date of this Order or later than three months
after the effective date of this Order, unless such
period is extended for good cause by the Board or by
the Federal Reserve Bank of Cleveland 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
August 10, 1984.
Voting for this action: Chairman Volcker and Governors
Martin, Wallich, Partee, and Gramley. Governor Wallich
abstained from the insurance portion of this action. Absent
and not voting: Governors Rice and Seger.
WILLIAM W. WILES
[SEAL]
Secretary of the Board
Orders Issued Under Section 5 of Bank
Corporation Act
Service
Chemical Bank
New York, New York
747
et seq.), to acquire all of the voting shares of a bank
service corporation, Chem Network Processing Services, Inc., Somerset, New Jersey ("Company").
Company currently engages in data processing activities under section 4(c)(8) of the Bank Holding Company Act, 12 U.S.C. § 1841 et seq., and section
225.25(b)(7) of the Board's Regulation Y, 12 C.F.R.
§ 225.25(b)(7), as a wholly owned subsidiary of a bank
holding company, Chemical New York Corporation,
New York, New York. Chemical Bank, the holding
company's lead banking subsidiary, proposes to acquire Company, which would become a bank service
corporation subject to the BSCA. In connection with
this proposal, Company has applied under section 5(b)
of the BSCA for permission to provide data processing
services throughout the United States as a bank service corporation.1
Section 4(f) of the BSCA, 12 U.S.C. § 1864(f),
provides that a bank service corporation may perform
at any geographic location any service, other than
deposit taking, that the Board has determined, by
regulation, to be permissible for a bank holding company under section 4(c)(8) of the Bank Holding Company Act.2 Company would provide throughout the
United States data processing services to the extent
those activities are generally permissible for bank
holding companies under the Board's Regulation Y,
12 C.F.R. § 225.25(b)(7).
Section 5(b) of the BSCA, 12 U.S.C. § 1865(b),
requires prior Board approval of any investment by an
insured bank (as defined)3 in the capital stock of a
bank service corporation that performs any service
under authority of section 4(f) of the BSCA. Section
5(b) of the BSCA also requires a Company that
becomes a bank service corporation under the BSCA
to obtain the Board's approval before providing a
service under authority of section 4(f) of the Act.
Section 5(c) of the BSCA, 12 U.S.C. § 1865(c),
authorizes the Board, in acting upon applications to
invest in bank service corporations, to consider the
financial and managerial resources of the institutions
involved, their prospects, and possible adverse effects, such as undue concentration of resources, unfair
or decreased competition, conflicts of interest, or
unsafe or unsound banking practices. The Board finds
that considerations relating to these factors are con-
Chem Network Processing Services, Inc.
Somerset, New Jersey
Order Approving Investment in a Bank Service
Corporation
Chemical Bank, New York, New York, an insured
state member bank, has applied for the Board's approval under section 5(b) of the Bank Service Corporation Act, as amended ("BSCA") (12 U.S.C. § 1861
1. The proposal represents a corporate reorganization under which
ownership of Company is to be transferred from the parent bank
holding company to its lead banking subsidiary.
2. Under section 4(c)(8) of the Bank Holding Company Act, a bank
holding company may engage in activities determined by the Board to
be closely related to banking and a proper incident thereto.
3. Under section 1(b)(5) of the BSCA (12 U.S.C. § 1861(b)(5)), the
term "insured bank" has the meaning provided in section 3(h) of the
Federal Deposit Insurance Act (12 U.S.C. § 1813(h)) and encompasses
banks insured by the Federal Deposit Insurance Corporation.
748
Federal Reserve Bulletin • September 1984
sistent with approval and that there is no evidence of
adverse effects.
Accordingly, on the basis of the record, the application is approved for the reasons summarized above.
This determination is subject to the Board's authority
to require such modification or termination of the
activities of a bank service corporation as the Board
finds necessary to assure compliance with the BSCA
or to prevent evasions thereof. The transactions shall
be consummated within three months after the date of
this Order, unless such period is extended for good
cause by the Board or the Federal Reserve Bank of
New York.
By order of the Board of Governors, effective
August 14, 1984.
Voting for this action: Vice Chairman Martin and Governors Wallich, Partee, Rice and Gramley. Absent and not
voting: Chairman Volcker and Governor Seger.
WILLIAM W. WILES
[SEAL]
Secretary of the Board
Sun Bank of Ocala
Ocala, Florida
Sun Bank of Tampa Bay
Tampa, Florida
Order Approving Investment in a Bank Service
Corporation
Sun Bank of Ocala, Ocala, Florida, and Sun Bank of
Tampa Bay, Tampa, Florida, insured state member
banks, have applied for the Board's approval under
section 5(a) of the Bank Service Corporation Act, as
amended ("BSCA") (12 U.S.C. § 1861 et seq.), to
invest in 9.4 percent of the voting and nonvoting
preferred stock of a bank service corporation, Sunbank Service Corporation, Orlando, Florida ("Company"). 1 Company is currently a wholly owned subsidiary of Sun Banks, Inc., Orlando, Florida ("Sun
Banks"), a multibank holding company. Applicants
are two of Sun Banks' 29 state and national bank
subsidiaries that propose to jointly invest in all of the
capital stock of Company, which would provide data
processing services to Sun Banks, its banking subsid-
1. Sun Bank of Ocala proposes to invest in 3.0 percent of Company's shares, and Sun Bank of Tampa Bay proposes to invest in 6.4
percent.
iaries and its mortgage company subsidiary through
Company's offices in Orlando, Florida.2
Section 4(e) of the BSCA (12 U.S.C. § 1864(e))
permits a bank service corporation to perform those
services that may be performed both by the state bank
shareholders under the applicable state law and by the
national bank shareholders under federal law, provided that the services are performed only at locations in
the state in which both the state bank and national
bank shareholders could be authorized to perform
such services. Applicants propose to engage through
Company in data processing activities in authorized
locations to the extent those activities are permissible
both for state banks under Florida law and for national
banks under federal law. The services would be performed only in Florida, at locations where all the
proposed shareholders of Company would be permitted to provide the services directly.
In order to consummate this proposal, Applicants
are required under section 5(a) of the BSCA
(12 U.S.C. § 1865(a)) to obtain the prior approval of
the "appropriate Federal banking agency." Congress
has designated the Board as the appropriate Federal
banking agency to approve applications by state member banks to invest in bank service corporations
acquired under the authority of section 4(e) of the
BSCA.3
Section 5(c) of the BSCA (12 U.S.C. § 1865(c))
authorizes the Board, in acting upon applications to
invest in bank service corporations, to consider the
financial and managerial resources of the institutions
involved, their prospects, and possible adverse effects, such as undue concentration of resources, unfair
or decreased competition, conflicts of interests, or
unsafe or unsound banking practices. The Board finds
that considerations relating to these factors are consistent with approval and that there is no evidence of
adverse effects.
Accordingly, on the basis of the record, the applications are approved for the reasons summarized above.
2. The proposal represents a corporate reorganization under which
ownership of Company is to be transferred from Sun Banks to its
banking subsidiaries. Applicants together with the other investing
banks would acquire from Sun Banks all the voting shares of Company and would subscribe to a new issuance by Company of nonvoting
preferred stock. With the exception of two recently acquired banks,
all of the banking subsidiaries of Sun Banks would be investors in
Company.
3. Under section 1(b)(1) of the BSCA (12 U.S.C. § 1861(b)(1)), the
Board is the appropriate Federal banking agency with respect to state
member banks. The Comptroller of the Currency is the appropriate
Federal banking agency with respect to the national bank investors
under this proposal, and the Federal Deposit Insurance Corporation is
the appropriate Federal banking agency with respect to the state
nonmember bank investors. Sun Banks' national bank subsidiaries
and state nonmember bank subsidiaries have applied to their appropriate agencies for prior approval of their proposed investments in
Company.
Legal Developments
This determination is subject to the Board's authority
to require such modification or termination of the
activities of a bank service corporation as the Board
finds necessary to assure compliance with the BSCA
or to prevent evasions thereof. The transactions may
not be consummated later than three months after the
date of this Order, unless the time is extended for good
cause by the Board or the Federal Reserve Bank of
Atlanta.
ORDERS APPROVED
UNDER BANK HOLDING
COMPANY
749
By order of the Board of Governors, effective
August 6, 1984.
Voting for this action: Chairman Volcker and Governors
Martin and Partee. Abstaining from this action: Governors
Wallich and Gramley. Absent and not voting: Governors Rice
and Seger.
WILLIAM W. WILES
Secretary of the Board
[SEAL]
ACT
By the Board of Governors
During August 1984 the Board of Governors approved the applications listed below. Copies are available upon
request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551
Section 3
Applicant
First Citizens Bancshares Company,
Marion, Arkansas
InterFirst Corporation,
Dallas, Texas
Royce Corporation,
Council Bluffs, low
By Federal Reserve
Board action
(effective
date)
Bank(s)
Citizens Bank,
Marion, Arkansas
InterFirst Bank Westlake, N.A.,
Austin, Texas
InterFirst Bank North Austin, N.A.,
Austin, Texas
InterFirst Bank West Beaumont, N.A.
Beaumont, Texas
Manning Trust & Savings Bank,
Manning, Iowa
Walnut State Bank,
Walnut, Iowa
August 7, 1984
August 10, 1984
August 17, 1984
Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are
available upon request to the Reserve Banks.
Section 3
Applicant
American Bank Corporation,
Denver, Colorado
American National Bancshares,
Inc.,
Waco, Texas
Bank(s)
American National Bank of
Evanston,
Evanston, Wyoming
American National Bank,
Waco, Texas
Reserve
Bank
Effective
date
Kansas City
August 13, 1984
Dallas
August 3, 1984
750
Federal Reserve Bulletin • September 1984
Section 3—Continued
Applicant
K
B. C. Bankshares, Inc.,
Canton, Georgia
BancEdmond, Inc.,
Edmond, Oklahoma
Bancenter One Group, Inc.,
Ellisville, Missouri
Bay Lake Bancorp, Inc.,
Kewaunee, Wisconsin
C. S. Bancshares, Inc.,
Connersville, Indiana
Charlotte Bancshares, Inc.,
Charlotte, Texas
Charter 17 Bancorp, Inc.,
Richmond, Indiana
Citizens Bankshares, Inc.,
Okemah, Oklahoma
City National Bankcorp, Inc.,
Metropolis, Illinois
Columbus Bancorp, Inc.,
Columbus, Indiana
Commercial Bancshares, Inc.,
Franklin, Louisiana
Community State Bankshares,
Inc.,
Wisconsin Rapids, Wisconsin
Continental Bancorp,
Miami, Florida
Continental Bancorporation,
Inc.,
Sikeston, Missouri
Dixon Bancorp, Inc.,
Dixon, Illinois
Elmore City Bancshares, Inc.,
Elmore City, Oklahoma
Erie Financial Corp.,
Detroit, Michigan
Bank(s)
R
Bank of Canton,
Canton, Georgia
Bank of Edmond, N.A.,
Edmond, Oklahoma
Bankcenter One,
Ellisville, Missouri
Union State Bank,
Kewaunee, Wisconsin
Central State Bank,
Connersville, Indiana
Charlotte State Bank,
Charlotte, Texas
Northwest National Bank,
Rensselaer, Indiana
The Citizens State Bank,
Okemah, Oklahoma
Affiliated Bank of Sapulpa, N.A.,
Sapulpa, Oklahoma
The City National Bank,
Metropolis, Illinois
Columbus Corporation,
Columbus, Indiana
Columbus Bank and Trust
Company,
Columbus, Indiana
Commercial Bank & Trust
Company,
Franklin, Louisiana
Community State Bank,
Wisconsin Rapids, Wisconsin
Atlanta
August 15, 1984
Kansas City
August 8, 1984
St. Louis
August 14, 1984
Chicago
August 13, 1984
Chicago
July 30, 1984
Dallas
July 25, 1984
Chicago
July 31, 1984
Kansas City
July 27, 1984
St. Louis
July 31, 1984
Chicago
August 1, 1984
Atlanta
July 27, 1984
Chicago
August 9, 1984
Atlanta
August 3, 1984
St. Louis
July 31, 1984
Chicago
August 14, 1984
Kansas City
August 3, 1984
Chicago
August 3, 1984
Continental National Bank of
Miami,
Miami, Florida
The First National Bank of
Sikeston,
Sikeston, Missouri
The Dixon National Bank,
Dixon, Illinois
First State Bank,
Elmore City, Oklahoma
Erie State Bank,
Monroe, Michigan
"eruve
Bank
Eff ctive
f
date
Legal Developments
Section 3—Continued
,.
A
Applicant
F.N.B. Corporation,
Hermitage, Pennsylvania
Farmers State Bancshares of
Sabetha, Inc.,
Sabetha, Kansas
Financial Shares, Inc.,
Morland, Kansas
First Bancshares, Inc.,
Grove Hill, Alabama
First Community Bank Group,
Incorporated,
Burlington, Wisconsin
First Fidelity Bancorp, Inc.,
Fairmont, West Virginia
First Guthrie Bancshares, Inc.,
Guthrie, Oklahoma
First Intermountain Holding
Corp.,
Salt Lake City, Utah
First Park Ridge Corporation,
Chicago, Illinois
First State Bancshares,
Thousand Oaks, California
First Valley Corporation,
Bethlehem, Pennsylvania
First Washington Bancorp, Inc.,
Naperville, Illinois
First Western Bancshares, Inc.,
Duncanville, Texas
G.N.B. Bankshares, Inc.,
Oakland, Maryland
Greensburg Bancshares, Inc.,
Greensburg, Louisiana
Guardian Bancorp, Inc.,
Phoenix, Arizona
Hallam Bancorp, Inc.,
Hallam, Nebraska
Hartford Financial Corp.,
Hartford, Alabama
n w \
Bank(s)
North Central Financial Corporation,
Emporium, Pennsylvania
Bucktail Bank and Trust
Company,
Emporium, Pennsylvania
Farmers State Bank,
Sabetha, Kansas
Reserve
Effective
Bank
date
Cleveland
August 1, 1984
Kansas City
August 10, 1984
Kansas City
July 27, 1984
Atlanta
August 15, 1984
Chicago
July 30, 1984
Central National Bank,
Morgantown, West Virginia
First Stillwater Bancshares, Inc.,
Stillwater, Oklahoma
United Bank,
Murray, Utah
Richmond
July 30, 1984
Kansas City
August 13, 1984
San Francisco
August 10, 1984
Bank of Buffalo Grove,
Buffalo Grove, Illinois
First State Bank of the Oaks
Thousand Oaks, California
The Hazleton National Bank,
Hazleton, Pennsylvania
Washington Bank and Trust
Company of Naperville,
Naperville, Illinois
The National Bank of Grand
Prairie,
Grand Prairie, Texas
The Garrett National Bank in
Oakland,
Oakland, Maryland
Bank of Greensburg,
Greensburg, Louisiana
Guardian Bank,
Phoenix, Arizona
Hallam Bank,
Hallam, Nebraska
City Bank of Hartford,
Hartford, Alabama
Chicago
August 1, 1984
San Francisco
August 14, 1984
Philadelphia
August 1, 1984
Chicago
August 13, 1984
Dallas
July 30, 1984
Richmond
August 13, 1984
Atlanta
July 26, 1984
San Francisco
August 15, 1984
Kansas City
July 27, 1984
Atlanta
August 6, 1984
Citizens State Bank,
Morland, Kansas
The First Bank of Grove Hill,
Grove Hill, Alabama
Bank of Albany,
Albany, Wisconsin
751
752
Federal Reserve Bulletin • September 1984
Section 3—Continued
.
Applicant
Hometown Bancshares, Inc.,
Houston, Texas
Hopkins County First Financial
Services Corporation,
Sulphur Springs, Texas
Huntsville Bancshares, Inc.,
Huntsville, Missouri
Island BankShares, Inc.,
Long Island, Kansas
Langdon Bancshares, Inc.,
Langdon, North Dakota
Liberty Bancorp, Inc.,
Broadview, Illinois
Lizton Financial Corporation,
Lizton, Indiana
Maple Bank Bancshares, Inc.,
Maple Park, Illinois
Mississippi Valley Investment
Company,
St. Louis, Missouri
Monticorp Inc.,
Monticello, Indiana
Montgomery County Bancshares, Inc.,
Little Rock, Arkansas
Mutual Banc Corp,
New Albany, Indiana
Napoleon Bancorp,
Napoleon, Indiana
National Banc of Commerce
Company,
Charleston, West Virginia
National Bancshares Corporation of Texas,
San Antonio, Texas
North Texas American Bancshares, Inc.,
Denison, Texas
Prairie Capital, Inc.,
Augusta, Kansas
R & J Financial Corporation,
Plainsfield, Iowa
Ruth Bank Corporation,
Ruth, Michigan
« i/ \
Bank(s)
Reserve
Rank
Effective
date
Clear Lake National Bank,
Houston, Texas
First National Bank of Sulphur
Springs,
Sulphur Springs, Texas
Farmers and Merchants Bank,
Huntsville, Missouri
Commercial State Bank,
Long Island, Kansas
Farmers and Merchants State
Bank,
Langdon, North Dakota
Liberty Bank,
Broadview, Illinois
State Bank of Lizton,
Lizton, Indiana
First State Bank of Maple Park,
Maple Park, Illinois
Southwest Bank of St. Louis,
St. Louis, Missouri
Dallas
August 16, 1984
Dallas
August 10, 1984
St. Louis
August 13, 1984
Kansas City
August 7, 1984
Minneapolis
August 16, 1984
Chicago
August 9, 1984
Chicago
August 13, 1984
Chicago
August 3, 1984
St. Louis
August 3, 1984
First National Bank of
Monticello,
Monticello, Indiana
The Bank of Montgomery
County,
Mount Ida, Arkansas
Mutual Trust Bank,
New Albany, Indiana
The Napoleon State Bank,
Napoleon, Indiana
Bank of Nitro,
Nitro, West Virginia
Chicago
July 31, 1984
St. Louis
July 26, 1984
St. Louis
August 10, 1984
Chicago
August 10, 1984
Richmond
August 14, 1984
Boerne State Bank,
Boerne, Texas
Dallas
August 13, 1984
The American Bank and Trust of
Denison,
Denison, Texas
The Prairie State Bank,
Augusta, Kansas
Peoples Savings Bank,
Elma, Iowa
Ruth State Bank,
Ruth, Michigan
Dallas
July 30, 1984
Kansas City
August 13, 1984
Chicago
August 13, 1984
Chicago
August 10, 1984
Legal Developments
Section 3—Continued
Applicant
Shreveport Bancshares, Inc.,
Shreveport, Louisiana
Smithtown Bancorp, Inc.,
Smithtown, New York
Southwest Tennessee Bancshares, Inc.,
Adamsville, Tennessee
Spring Woods Bancshares, Inc.
Houston, Texas
Springhill Bancshares, Inc.,
Springhill, Louisiana
Stewart County Bancorp, Inc.,
Dover, Tennessee
The Chattahoochee Financial
Corporation,
Marietta, Georgia
Unibancorp,
Loogootee, Indiana
Western Kansas Bancshares,
Inc.,
Ulysses, Kansas
Valley Bancorp, Inc.,
Brighton, Colorado
Bank(s)
Shreveport Bank & Trust
Company,
Shreveport, Louisiana
Bank of Smithtown,
Smithtown, New York
Farmers & Merchants Bank,
Adamsville, Tennessee
Richmark Bank, N.A.,
Houston, Texas
Springhill Bank & Trust
Company,
Springhill, Louisiana
Dover-Peoples Bank & Trust
Company,
Dover, Tennessee
The Chattahoochee Bank,
Marietta, Georgia
The Union Bank,
Loogootee, Indiana
Southwest Kansas National
Bank,
Ulysses, Kansas
Platte Valley Industrial Bank,
Brighton, Colorado
Reserve
Bank
Effective
date
Dallas
August 14, 1984
New York
August 6, 1984
St. Louis
August 1, 1984
Dallas
July 31, 1984
Dallas
August 13, 1984
Atlanta
August 6, 1984
Atlanta
August 7, 1984
St. Louis
August 10, 1984
Kansas City
August 9, 1984
Kansas City
August 13, 1984
Section 4
Applicant
Marshall & Ilsley Corporation,
Milwaukee, Wisconsin
Nonbanking
company
Midwest Bank's Data Processing,
Inc.,
Moline, Illinois
Reserve
Effective
Bank
date
Chicago
August 14, 1984
Sections 3 and 4
Applicant
First Victoria Corporation,
Victoria, Texas
Bank(s)/Nonbanking
Company
First Victoria National Bank,
Victoria, Texas
Reserve
Bank
Dallas
Effective
date
August 13, 1984
753
754
Federal Reserve Bulletin • September 1984
ORDERS APPROVED
By Federal Reserve
UNDER BANK MERGER
Banks
Virginia Community Bank,
Louisa, Virginia
CASES INVOLVING
Reserve
Bank
Bank(s)
Applicant
PENDING
ACT
Richmond
The Bank of Louisa,
Louisa, Virginia
THE BOARD
OF
Effective
date
August 8, 1984
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.
Old Stone Corp. v. Board of Governors, No. 84-1498
(1st Cir., filed June 20, 1984).
Bank of Boston Corp. v. Board of Governors, No. 844089 (2d Cir., filed June 14, 1984).
Bank of New York Company, Inc. v. Board of Governors, No. 84- 4091 (2d Cir., filed June 14, 1984).
Citicorp v. Board of Governors, No. 84-4081 (2d Cir.,
filed May 22, 1984).
Lamb v. Pioneer First Federal Savings and Loan
Association, No. C84-702 (D. Wash., filed May 8,
1984).
Girard Bank v. Board of Governors, No. 84-3262 (3rd
Cir., filed May 2, 1984).
Melcher v. Federal Open Market Committee, No. 841335 (D.D.C., filed, Apr. 30, 1984).
Florida Bankers Association v. Board of Governors,
No. 84-3269 and No. 84-3270 (11th Cir., filed
Apr. 20, 1984).
Northeast Bancorp, Inc. v. Board of Governors, No.
84-4047, No. 84-4051, No. 84-4053 (2d Cir., filed
Mar. 27, 1984).
Huston v. Board of Governors, No. 84-1361 (8th Cir.,
filed Mar. 20, 1984); and No. 84-1084 (8th Cir. filed
Jan. 17, 1984).
De Young v. Owens, No. SC 9782-20-6 (Iowa Dist.
Ct., filed Mar. 8, 1984).
First Tennessee National Corp. v. Board of Governors, No. 84-3201 (6th Cir., filed Mar. 6, 1984).
Independent Insurance Agents of America v. Board of
Governors, No. 84-1083 (D.C. Cir., filed Mar. 5,
1984).
State of Ohio v. Board of Governors, No. 84-1270
(10th Cir., filed Jan. 30, 1984).
Ohio Deposit Guarantee Fund v. Board of Governors,
No. 84-1257 (10th Cir., filed Jan. 28, 1984).
Colorado Industrial Bankers Association v. Board oj
Governors, No. 84-1122 (10th Cir., filed Jan. 27,
1984).
Financial Institutions Assurance Corp. v. Board of
Governors, No. 84-1101 (4th Cir., filed Jan. 27,
1984).
First Bancorporation v. Board of Governors, No. 841011 (10th Cir., filed Jan. 5, 1984).
Dimension Financial Corporation v. Board of Governors, No. 83-2696 (10th Cir., filed Dec. 30, 1983).
Oklahoma Bankers Association v. Federal Reserve
Board, No. 83-2591 (10th Cir., filed Dec. 13, 1983).
Independent Insurance Agents of America, Inc. v.
Board of Governors, No. 83-1818 (8th Cir., filed
June 21, 1983); and No. 83-1819 (8th Cir., filed
June 21, 1983).
The Committee for Monetary Reform v. Board of
Governors, No. 84-5067 (D.C. Cir., filed June 16,
1983).
Securities Industry Association v. Board of Governors, No. 83-614 (U.S., filed Feb. 3, 1983).
Association of Data Processing Service Organizations
v. Board of Governors, No. 82-1910 (D.C. Cir., filed
Aug. 16, 1982); and No. 82-2108 (D.C. Cir., filed
Aug. 16, 1982).
First Bancorporation v. Board of Governors, No. 821401 (10th Cir., filed Apr. 9, 1982).
Wolfson v. Board of Governors, No. 83-3570 (11th
Cir., filed Sept. 28, 1981).
First Bank & Trust Company v. Board of Governors,
No. 81-38 (E.D. Ky., filed Feb. 24, 1981).
9 to 5 Organization for Women Office Workers v.
Board of Governors, No. 83-1171 (1st Cir., filed
Dec. 30, 1980).
Securities Industry Association v. Board of Governors, No. 82-1766 (U.S., filed Oct. 24, 1980).
A. G. Becker, Inc. v. Board of Governors, No. 82-1766
(U.S., filed Oct. 14, 1980).
A. G. Becker, Inc. v. Board of Governors, No. 81-1493
(D.C. Cir., filed Aug. 25, 1980).
A1
Financial and Business Statistics
CONTENTS
Domestic
WEEKLY REPORTING
Financial
Statistics
A3 Reserves, money stock, liquid assets, and debt
measures
A4 Reserve balances of depository institutions,
Reserve Bank credit
A5 Reserves and borrowings of depository
institutions
A5 Federal funds and repurchase agreements of
large member banks
COMMERCIAL
BANKS
Assets and liabilities
A18 All reporting banks
A19 Banks in New York City
A20 Balance sheet memoranda
A20 Branches and agencies of foreign banks
A21 Gross demand deposits of individuals,
partnerships, and corporations
FINANCIAL
MARKETS
A6 Federal Reserve Bank interest rates
A7 Reserve requirements of depository institutions
A8 Maximum interest rates payable on time and
savings deposits at federally insured institutions
A9 Federal Reserve open market transactions
A22 Commercial paper and bankers dollar
acceptances outstanding
A22 Prime rate charged by banks on short-term
business loans
A23 Terms of lending at commercial banks
A24 Interest rates in money and capital markets
A25 Stock market—Selected statistics
A26 Selected financial institutions—Selected assets
and liabilities
FEDERAL RESERVE
FEDERAL
POLICY
INSTRUMENTS
BANKS
A10 Condition and Federal Reserve note statements
All Maturity distribution of loan and security
holdings
MONETARY
AND CREDIT
AGGREGATES
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
A14 Bank debits and deposit turnover
A15 Loans and securities of all commercial banks
COMMERCIAL
BANKING
INSTITUTIONS
A16 Major nondeposit funds
A17 Assets and liabilities, last-Wednesday-of-month
series
A27
A28
A29
A29
FINANCE
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
A30 U.S. government securities dealers—
Transactions, positions, and financing
A31 Federal and federally sponsored credit
agencies—Debt outstanding
2
Federal Reserve Bulletin • September 1984
International
SECURITIES MARKETS
AND
CORPORATE
FINANCE
A32 New security issues—State and local
governments and corporations
A33 Open-end investment companies—Net sales and
asset position
A3 3 Corporate profits and their distribution
A34 Nonfinancial corporations—Assets and
liabilities
A34 Total nonfarm business expenditures on new
plant and equipment
A35 Domestic finance companies—Assets and
liabilities and business credit
REAL
ESTATE
A36 Mortgage markets
A37 Mortgage debt outstanding
CONSUMER
INSTALLMENT
CREDIT
A38 Total outstanding and net change
A39 Terms
FLOW OF
Nonfinancial
Statistics
A42 Nonfinancial business activity—Selected
measures
A42 Output, capacity, and capacity utilization
A43 Labor force, employment, and unemployment
A44 Industrial production—Indexes and gross value
A46 Housing and construction
A47 Consumer and producer prices
A48 Gross national product and income
A49 Personal income and saving
A50
A51
A51
A51
U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A52 Foreign branches of U.S. banks—Balance sheet
data
A54 Selected U.S. liabilities to foreign official
institutions
REPORTED
BY BANKS
IN THE UNITED
STATES
A54
A55
A57
A58
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A58 Banks' own claims on unaffiliated foreigners
A59 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED BY NONBANKING
ENTERPRISES IN THE UNITED
BUSINESS
STATES
A60 Liabilities to unaffiliated foreigners
A61 Claims on unaffiliated foreigners
FUNDS
A40 Funds raised in U.S. credit markets
A41 Direct and indirect sources of funds to credit
markets
Domestic
Statistics
SECURITIES
HOLDINGS
AND
TRANSACTIONS
A62 Foreign transactions in securities
A63 Marketable U.S. Treasury bonds and notes—
Foreign holdings and transactions
INTEREST AND EXCHANGE
RATES
A63 Discount rates of foreign central banks
A64 Foreign short-term interest rates
A64 Foreign exchange rates
A65 Guide to Tabular
Statistical Releases,
Tables
Presentation,
and
Special
Domestic Financial Statistics
A3
1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent) 1
Item
Q4
Q3
1984
Q2
Ql
Mar.
Apr.
May
June
July
institutions2
1
2
3
4
Reserves of depository
Total
Required
Nonborrowed
Monetary base 3
5
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt
Nontransaction
10 In M25
11 In M3 only 6
1984
1983
6.0
5.9
2.9
8.1
.5
-.1
8.0
7.8
6.9
4.5
8.2
9.0
7.8
9.6
-12.1
7.0
1.3
9.3
-11.7
.8
.0
7.4
-9.6
6.0
9.5
6.9
7.4
9.6
11.8
4.8
8.5
9.8
8.8
10.4
7.2
6.9
8.9'
10.8'
12.5
6.1 r
6.8'
10.4
12.3
13.5
.4'
4.0
9.3'
15.6
12.3'
.7
6.9'
10.7'
9.7'
13.4'
6.1
9.8'
9.7
15.8
6.9
17.5'
7.0'
25.3
3.7
31.3'
-6.3
13.7
-4.8
-6.4
19.3
-.2
-16.2
4.4
10.0
-6.4
8.6
24.2
-2.2
12.3
63.5
-4.4
18.8
58.1
-5.1
11.8
59.0
22.9
8.7
9.7
13.3
9.6
10.4
14.7
11.8
14.0
10.7
8.0
-46.2
10.1
26.5
20.6
17.7
11.7
-1.8
3.5
-94.7
5.6
12.8
8.5'
11.2'
11.
14.8'
11.5
7.0'
9.3'
15.1
12.6
-1.3
5.0
8.9
n.a.
n.a.
9.0
26.7
7.0'
22.4'
5.6'
18.7'
7.0
24.4
-11.1
2.4
23.7
-2.8
8.5
18.6
-3.7
15.2
37.6
-1.9
17.3
28.5
-5.6
20.0
26.0
.5
9.0
46.4
.7
4.8
37.5
2.0
6.7
41.6
2.7
9.8'
43.2
-.7'
18.9
54.3
-8.1
25.1
42.7
14.0
13.4
10.4'
7.5'
13.7'
13.4
12.5'
13.8
5.8
19.3
13.5
13.9'
11.8
12.9
1.7'
n.a.
n.a.
8.7
components
Time and savings deposits
Commercial banks
Savings 7
Small-denomination time 8
Large-denomination time9-10
Thrift institutions
15 Savings7
16 Small-denomination time
17 Large-denomination time 9
12
13
14
Debt components4
18 Federal
19 Nonfederal
20 Total loans and securities at commercial banks 11
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.
2. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
3. The monetary base not adjusted for discontinuities consists of total
reserves plus required clearing balances and adjustments to compensate for float
at Federal Reserve Banks plus the currency component of the money stock less
the amount of vault cash holdings of thrift institutions that is included in the
currency component of the money stock plus, for institutions not having required
reserve balances, the excess of current vault cash over the amount applied to
satisfy current reserve requirements. After the introduction of contemporaneous
reserve requirements (CRR), currency and vault cash figures are measured over
the weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock plus the remaining items seasonally
adjusted as a whole.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits
at all commercial banks other than those due to domestic banks, the U.S.
government, and foreign banks and official institutions less cash items in the
process of collection and Federal Reserve float; and (4) other checkable deposits
(OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer
service (ATS) accounts at depository institutions, credit union share draft
accounts, and demand deposits at thrift institutions. The currency and demand
deposit components exclude the estimated amount of vault cash and demand
deposits respectively held by thrift institutions to service their OCD liabilities.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, 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 on an end-of-month basis. Growth rates for debt reflect adjustments for
discontinuities over time in the levels of debt presented in other tables.
5. Sum of overnight RPs and Eurodollars, money market fund balances
(general purpose and broker/dealer), MMDAs, and savings and small time
deposits less the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposit liabilities.
6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents,
money market fund balances (institution-only), less a consolidation adjustment
that represents the estimated amount of overnight RPs and Eurodollars held by
institution-only money market mutual funds.
7. Excludes MMDAs.
8. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All IRA and Keogh accounts at commercial
banks and thrifts are subtracted from small time deposits.
9. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
10. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
11. Changes calculated from figures shown in table 1.23. Beginning December
1981, growth rates reflect shifts of foreign loans and securities from U.S. banking
offices to international banking facilities.
A4
DomesticNonfinancialStatistics • September 1984
1.11
RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1984
1984
Factors
June
July
Aug.
175,397
176,910
175,604
177,945
176,331
175,366
176,186
176,122
174,924
174,371
154,500
153,354
1,146
8,602
8,503
99
106
3,166
594
8,429
11,103
4,618
16,082
152,628
152,050
578
8,540
8,500
40
0
6,023
822
8,897
11,099
4,618
16,147
150,145
149,890
255
8,512
8,494
18
0
8,095
417
8,435
11,099
4,618
16,186
154,054
153,102
952
8,542
8,500
42
0
5,891
713
8,745
11,099
4,618
16,128'
151,472
151,472
0
8,500
8,500
0
0
6,849
603
8,907
11,099
4,618
16,136'
149,972
149,972
0
8,498
8,498
0
0
7,460
370
9,066
11,099
4,618
16,146
150,701
150,701
0
8,494
8,494
0
0
7,282
784
8,925
11,099
4,618
16,162
149,443
149,443
0
8,494
8,494
0
0
8,692
583
8,910
11,099
4,618
16,177
150,378
150,378
0
8,494
8,494
0
0
7,935
286
7,831
11,099
4,618
16,192
149,332
149,332
0
8,494
8,494
0
0
8,356
106
8,083
11,099
4,618
16,207
174,219
530
176,358
514
176,182
475
176,828'
521
175,892'
510
175,355
497
176,257
480
176,767
476
176,117
475
175,468
472
3,894
244
1,388
3,966
227
1,526
3,528
214
1,462
3,415
248
1,339
3,972
227
2,043'
4,179
215
1,502
3,942
218
1,404
3,120
205
1,378
3,348
208
1,452
3,615
206
1,504
July 18
July 25
Aug. 1
Aug. 8
Aug. 15
Aug. 22
Aug. 29
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit
2
U.S. government securities'
3
Bought outright
Held under repurchase a g r e e m e n t s . . . .
4
5
Federal agency obligations
Bought outright
6
7
Held under repurchase agreements....
Acceptances
8
9
Loans
10 Float
11 Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate a c c o u n t . . . .
14 Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and adjustments
439
329
339
341
276
314
274
275
322
436
6,214
6,128
5,986
6,1%
6,147
6,097
5,853
6,067
6,039
5,979
20,272
20 Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks 2
19,726
19,321
20,904
19,118'
19,071
19,637
19,728
18,871
18,614
End-of-month figures
Wednesday figures
1984
1984
June
July
Aug.
July 18
July 25
23 Reserve Bank credit
175,051
176,127
178,938
181,230
174,907
178,219
177,009
174,186
174,939
173,944
24
25
26
27
28
29
30
31
32
33
152,859
152,859
0
8,501
8,501
0
0
4,760
-655
9,586
150,705
150,705
0
8,499
8,499
0
0
7,238
671
9,014
153,183
148,356
4,827
8,863
8,494
369
0
8,276
326
8,290
155,637
152,630
3,007
8,659
8,500
159
0
6,958
1,006
8,970
150,167
150,167
0
8,499
8,499
0
0
6,995
198
9,048
151,352
151,352
0
8,494
8,494
0
0
8,775
604
8,994
150,660
150,660
0
8,494
8,494
0
0
7,385
1,225
9,245
144,689
144,689
0
8,494
8,494
0
0
12,787
264
7,952
150,392
150,392
0
8,494
8,494
0
0
7,826
38
8,189
149,054
149,054
0
8,494
8,494
0
0
8,166
-24
8,254
11,100
4,618
16,111
11,099
4,618
16,173
11,098
4,618
16,220
11,099
4,618
16,135'
11,099
4,618
16,143'
11,099
4,618
16,160
11,099
4,618
16,175
11,099
4,618
16,190
11,099
4,618
16,205
11,098
4,618
16,220
175,069
523
175,634
497
176,852
465
176,527'
512
175,614'
497
175,777
489
176,713
476
176,667
475
175,837
473
176,005
465
4,397
237
1,148
3,972
215
1,159
4,029
242
1,148
3,848
195
1,156
3,958
246
1,157'
3,586
256
1,158
4,220
228
1,145
4,393
205
1,145
3,358
233
1,141
3,783
215
1,142
Aug. 1
Aug. 8
Aug. 15
Aug. 22
Aug. 29
SUPPLYING RESERVE F U N D S
U.S. government securities'
Bought outright
Held under repurchase agreements
Federal agency obligations
Bought outright
Held under repurchase agreements
Acceptances
Loans
Float
Other Federal Reserve assets
34 Gold stock
35 Special drawing rights certificate account
36 Treasury currency outstanding
...
ABSORBING RESERVE F U N D S
37 Currency in circulation
38 Treasury cash holdings
Deposits, other than reserve balances with
Federal Reserve Banks
39 Treasury
40
Foreign
41 Service-related balances and adjustments . . . .
42 Other
43 Other Federal Reserve liabilities and
capital
44 Reserve balances with Federal
Reserve Banks 2
432
309
413
275
265
533
246
289
485
428
5,971
6,035
6,140
6,126
5,967
5,815
5,811
5,842
5,863
5,792
19,104
20,196
21,585
24,444
19,064'
22,482
20,062
17,077
19,470
18,050
1. Includes securities loaned—fully guaranteed by U.S government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Excludes required clearing balances and adjustments to compensate for
float.
NOTE. For amounts of currency and coin held as reserves, see table 1.12.
Depository Institutions
1.12
RESERVES A N D BORROWINGS
Millions of dollars
A5
Depository Institutions
Monthly averages of daily figures
Reserve classification
Reserve balances with Reserve Banks 1
Total vault cash 2
Vault cash used to satisfy reserve requirements 3 .
Surplus vault cash 4
Total reserves 5
Required reserves
Excess reserve balances at Reserve Banks 6
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks 7
1982
1983
Dec.
1
2
3
4
5
6
7
8
9
10
1981
1984
Dec.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
26,163
19,538
15,755
3,783
41,918
41,606
312
642
53
149
24,804
20,392
17,049
3,343
41,853
41,353
500
697
33
187
20,986
20,755
17,908
2,847
38,894
38,333
561
774'
96
2
21,325
22,578
18,795
3,782
40,120
39,507
613
715
86
4
18,414
22,269
17,951
4,318
36,365
35,423
942
567
103
5
19,484
20,396
16,794
3,602
36,278
35,569
709
952
133
27
20,351
20,152
16,802
3,349
37,154
36,664
490
1,234
139
44
19,560
20,446
16,960
3,486
36,519
35,942
577
2,988
1%
37
20,210
20,770
17,308
3,461
37,518
36,752
767
3,300
264
1,873
19,885
21,134
17,579
3,555
37,464
36,858
607
5,924
308
5,008
Biweekly averages of daily figures for weeks ending
1984
Apr. 25
11
12
13
14
15
16
17
18
19
20
Reserve balances with Reserve Banks'
Total vault cash 2
Vault cash used to satisfy reserve requirements 3 .
Surplus vault cash 4
Total reserves 5
Required reserves
Excess reserve balances at Reserve Banks 6
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks 7
May 9
May 23
June 6
June 20
July 4
July 18
Aug. 1
Aug. 15P
Aug. 29p
20,556
20,476
17,103
3,373
37,659
37,091
568
1,232
138
44
20,029
20,010
16,582
3,429
36,611
36,019
592
1,064
159
61
19,390
20,655
17,167
3,489
36,556
35,937
620
4,180
195
34
19,329
20,570
17,023
3,547
36,352
35,865
487
3,070
239
16
20,603
20,604
17,284
3,320
37,887
37,208
679
2,965
257
1,974
20,189
21,121
17,513
3,608
37,702
36,645
1,058
3,909
289
2,846
20,546
20,708
17,404
3,304
37,950
37,499
451
5,358
284
4,614
19,079
21,597
17,789
3,808
36,868
36,233
635
7,155
340
6,098
19,669
21,533
17,922
3,611
37,590
36,914
677
7,987
338
6,976
18,727
21,981
18,156
3,825
36,882
36,184
698
8,146
359
7,184
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
1.13
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.
NOTE. These data also appear in the Board's H.3 (502) release. For address, see
inside front cover.
FEDERAL FUNDS A N D REPURCHASE AGREEMENTS
Averages of daily figures, in millions of dollars
Large Member Banks1
1984 week ending Monday
By maturity and source
July 2
One day and continuing contract
1 Commercial banks in United States
2 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies .
3 Nonbank securities dealers
4 All other
All other maturities
5 Commercial banks in United States
6 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies .
7 Nonbank securities dealers
8 All other
MEMO: Federal funds and resale agreement loans in
maturities of one day or continuing contract
9 Commercial banks in United States
10 Nonbank securities dealers
1. Banks with assets of $1 billion or more as of Dec. 31, 1977.
July 9
July 16
July 23
July 30'
Aug. 6
Aug. 13
Aug. 20
Aug. 27
56,052
64,992
59,295
55,879'
54,302
60,070
62,041
59,692
56,969
18,828
5,570
24,075
21,053
5,361
24,357
19,970
4,740
24,793
19,502
5,027
25,787
19,437
4,758
25,654
21,050
5,029
25,363
22,831
5,469
26,088
21,881
5,287
26,242
21,738
5,073
27,663
9,2%
8,908
9,084
9,065
9,133
9,040
8,908
8,620
9,236
11,980
6,557
9,186
11,728
5,466
8,535
12,033
5,723
9,586
10,799
5,901
9,484
10,650
6,862
9,734
10,397
6,758
10,008
10,159
6,514
10,320
9,923
6,304
10,290
9,614
6,117
10,413
25,074r
5,328
24,908'
4,936
24,744'
4,896
23,686'
4,239
23,954
3,950
26,938
3,882
26,008
3,809
26,517
4,189
24,220
3,987
A6
DomesticNonfinancialStatistics • September 1984
1.14
FEDERAL RESERVE BANK INTEREST RATES
Percent per annum
Current and previous levels
Extended credit 1
Short-term adjustment credit
and seasonal credit
Federal Reserve
Bank
Rate on
8/31/84
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco...
Previous
rate
Effective
date
9
m
4/9/84
4/9/84
4/9/84
4/10/84
4/9/84
4/10/84
4/9/84
4/9/84
4/9/84
4/13/84
4/9/84
4/13/84
9
First 60 days
of borrowing
8'/>
Rate on
8/31/84
Next 90 days
of borrowing
Previous
rate
Previous
rate
Rate on
8/31/84
Previous
rate
10
91/2
11
10'/>
m
9
10
Range of rates 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
1976— Jan.
19
23
Nov. 22
26
1977— Aug. 30
31
Sept. 2
Oct. 26
1978— Jan.
9
20
May 11
12
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
7l/l
IVI
lVi-%
8
%
V/ir-% 73
73/4
l
3
7/4-7 /4
iVt-VA
VA
3
6 /4-7'/4
63/4
6'/t-63/4
6Vi
6-6'/4
6
5>/2-6
5Vi 1
51/4-5 /!
5'/4
5'/4-53/4
51/4-5V4
53/4
6
6-6'/i
6 Vi
6'/>-7
7
Effective date
7 /4
7/
34
7>/4
7'/4
63/4
63/4
6'/4
64
V
6
6
5'/>
5V2
5>A
5'A
51/4
5/
34
53/4
6
6'/z
l
6A
1978—July
3
1
0
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
1979—July 20
Aug. 17
20
Sept. 19
21
Oct.
8
10
1980—Feb. 15
19
May 29
30
June 13
16
July 28
29
Sept. 26
Nov. 17
Dec. 5
7
7
1. Applicable to advances when exceptional circumstances or practices involve
only a particular depository institution and to advances when an institution is
under sustained liquidity pressures. See section 201.3(b)(2) of Regulation A.
2. Rates for short-term adjustment credit. For description and earlier data see
the following publications of the Board of Governors: Banking and Monetary
Statistics, 1914-1941, and 1941-1970; Annual Statistical Digest, 1970-1979,1980,
1981, and 1982.
Effective date
for current rates
Rate on
8/31/84
m
9
After 150 days
73/4
8
F.R.
Bank
of
N.Y.
71/4
71/4
73/4
8 Vi
81/2-91/2
91/1
8
m
8'/>
9'/!
9Vz
10
10-10'/!
10'/!
lO'/i-l 1
11
11-12
12
10
10'/!
lO'/i
11
11
12
12
8-8V2
12-13
13
12-13
12
11-12
11
10-11
10
11
12
12-13
13
4/9/84
4/9/84
4/9/84
4/13/84
4/9/84
4/13/84
10(4
2
Range (or
level)—
All F.R.
Banks
7-7"/4
7'/4
11
4/9/84
4/9/84
4/9/84
4/10/84
4/9/84
4/10/84
13
13
13
12
11
11
10
10
11
12
13
13
Effective date
1981—May
Nov.
Dec.
5
8
2
6
4
1982— July 20
23
Aug. 2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
1984— Apr.
9
13
In effect Aug. 31, 1984
Range (or
level}—
All F.R.
Banks
F.R.
Bank
of
N.Y.
13-14
14
13-14
13
12
14
14
13
13
12
llVi-12
11'/>
11-11'/!
11
10'/>
10-10'/!
10
9>/2-10
9'/2
9-9'/i
9
8'/s-9
8'/2-9
ll'/2
8Vi—9
9
9
9
9
9
8>/2
ll'/>
11
11
10'/!
10
10
9'/!
91/2
9
9
9
8'/!
8Vi
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than 4 weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was
adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and
to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective
Sept. 22, 1981, and to 2 percent effective Oct. 12. As of Oct. 1, the formula for
applying the surcharge was changed from a calendar quarter to a moving 13-week
period. The surcharge was eliminated on Nov. 17, 1981.
Policy Instruments
1.15
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS'
Percent of deposits
Type of deposit, and
deposit interval
Member bank requirements
before implementation of the
Monetary Control Act
Percent
Net
Al
113/4
123/4
16'/4
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
3
9 /2
3
2Vi
1
12/29/83
12/29/83
Nonpersonal time deposits9
By original maturity
Less than 1 xh years
1 years or more
3
0
10/6/83
10/6/83
3
11/13/80
6
2 Vi
1
liabilities
3/16/67
1/8/76
10/30/75
12/12/74
1/8/76
10/30/75
1. For changes in reserve requirements beginning 1963, see Board's Annual
Statistical Digest, 1971-1975, and for prior changes, see Board's Annual Report
for 1976, table 13. Under provisions of the Monetary Control Act, depository
institutions include commercial banks, mutual savings banks, savings and loan
associations, credit unions, agencies and branches offoreign banks, and Edge Act
corporations.
2. Requirement schedules are graduated, and each deposit interval applies to
that part of the deposits of each bank. Demand deposits subject to reserve
requirements were gross demand deposits minus cash items in process of
collection and demand balances due from domestic banks.
The Federal Reserve Act as amended through 1978 specified different ranges of
requirements for reserve city banks and for other banks. Reserve cities were
designated under a criterion adopted effective Nov. 9, 1972, by which a bank
having net demand deposits of more than $400 million was considered to have the
character of business of a reserve city bank. The presence of the head office of
such a bank constituted designation of that place as a reserve city. Cities in which
there were Federal Reserve Banks or branches were also reserve cities. Any
banks having net demand deposits of $400 million or less were considered to have
the character of business of banks outside of reserve cities and were permitted to
maintain reserves at ratios set for banks not in reserve cities.
Effective Aug. 24, 1978, the Regulation M reserve requirements on net balances
due from domestic banks to their foreign branches and on deposits that foreign
branches lend to U.S. residents were reduced to zero from 4 percent and 1 percent
respectively. The Regulation D reserve requirement of borrowings from unrelated
banks abroad was also reduced to zero from 4 percent.
Effective with the reserve computation period beginning Nov. 16, 1978,
domestic deposits of Edge corporations were subject to the same reserve
requirements as deposits of member banks.
3. Negotiable order of withdrawal (NOW) accounts and time deposits such as
Christmas and vacation club accounts were subject to the same requirements as
savings deposits.
The average reserve requirement on savings and other time deposits before
implementation of the Monetary Control Act had to be at least 3 percent, the
minimum specified by law.
4. Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent
was imposed on large time deposits of $100,000 or more, obligations of affiliates,
and ineligible acceptances. This supplementary requirement was eliminated with
the maintenance period beginning July 24, 1980.
Effective with the reserve maintenance period beginning Oct. 25, 1979, a
marginal reserve requirement of 8 percent was added to managed liabilities in
excess of a base amount. This marginal requirement was increased to 10 percent
beginning Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and
was eliminated beginning July 24, 1980. Managed liabilities are defined as large
time deposits, Eurodollar borrowings, repurchase agreements against U.S.
government and federal agency securities, federal funds borrowings from nonmember institutions, and certain other obligations. In general, the base for the
marginal reserve requirement was originally the greater of (a) $100 million or (b)
the average amount of the managed liabilities held by a member bank, Edge
corporation, or family of U.S. branches and agencies of a foreign bank for the two
reserve computation periods ending Sept. 26, 1979. For the computation period
beginning Mar. 20,1980, the base was lowered by (a) 7 percent or (b) the decrease
in an institution's U.S. office gross loans to foreigners and gross balances due
from foreign offices of other institutions between the base period (Sept. 13-26,
1979) and the week ending Mar. 12, 1980, whichever was greater. For the
computation period beginning May 29, 1980, the base was increased by l x /i
percent above the base used to calculate the marginal reserve in the statement
week of May 14-21, 1980. In addition, beginning Mar. 19, 1980, the base was
reduced to the extent that foreign loans and balances declined.
3
12
Net transaction accounts1
$0-$28.9 million
Over $28.9 million
3/16/67
l
Time 4
$0 million-$5 million, by maturity
30-179 days
180 days to 4 years
4 years or more
Over $5 million, by maturity
30-179 days
180 days to 4 years
4 years or more
Effective date
Eurocurrency
All types
7
Time and savings2-3
Savings
Depository institution requirements
after implementation of the
Monetary Control Act 6
Percent
Effective date
demand2
$10 million-$100 million
$100 million-$400 million
Over $400 million
Type of deposit, and
deposit interval 5
5. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 97320) provides that $2 million of reservable liabilities (transaction accounts,
nonpersonal time deposits, and Eurocurrency liabilities) of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the next succeeding calendar year by 80 percent of the
percentage increase in the total reservable liabilities of all depository institutions,
measured on an annual basis as of June 30. No corresponding adjustment is to be
made in the event of a decrease. Effective Dec. 9, 1982, the amount of the
exemption was established at $2.1 million. Effective with the reserve maintenance
period beginning Jan. 12, 1984, the amount of the exemption is $2.2 million. In
determining the reserve requirements of a depository institution, the exemption
shall apply in the following order: (1) nonpersonal money market deposit accounts
(MMDAs) authorized under 12 CFR section 1204.122; (2) net NOW accounts
(NOW accounts less allowable deductions); (3) net other transaction accounts;
and (4) nonpersonal time deposits or Eurocurrency liabilities starting with those
with the highest reserve ratio. With respect to NOW accounts and other
transaction accounts, the exemption applies only to such accounts that would be
subject to a 3 percent reserve requirement.
6. For nonmember banks and thrift institutions that were not members of the
Federal Reserve System on or after July 1, 1979, a phase-in period ends Sept. 3,
1987. For banks that were members on or after July 1, 1979, but withdrew on or
before Mar. 31, 1980, the phase-in period established by Public Law 97-320 ends
on Oct. 24, 1985. For existing member banks the phase-in period of about three
years was completed on Feb. 2, 1984. All new institutions will have a two-year
phase-in beginning with the date that they open for business, except for those
institutions that have total reservable liabilities of $50 million or more.
7. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers (in excess
of three per month) for the purpose of making payments to third persons or others.
However, MMDAs and similar accounts offered by institutions not subject to the
rules of the Depository Institutions Deregulation Committee (DIDC) that permit
no more than six preauthorized, automatic, or other transfers per month of which
no more than three can be checks—are not transaction accounts (such accounts
are savings deposits subject to time deposit reserve requirements.)
8. The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage increase in transaction accounts held by
all depository institutions determined as of June 30 each year. Effective Dec. 31,
1981, the amount was increased accordingly from $25 million to $26 million; and
effective Dec. 30, 1982, to $26.3 million; and effective Dec. 29, 1983, to $28.9
million.
9. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which a beneficial interest is
held by a depositor that is not a natural person. Also included are certain
transferable time deposits held by natural persons, and certain obligations issued
to depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.
NOTE. Required reserves must be held in the form of deposits with Federal
Reserve Banks or vault cash. Nonmembers may maintain reserve balances with a
Federal Reserve Bank indirectly on a pass-through basis with certain approved
institutions.
A8
DomesticNonfinancialStatistics • September 1984
1.16
MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions'
Percent per annum
Commercial banks
In effect Sept. 30, 1984
Type of deposit
Savings and loan associations and
mutual savings banks (thrift institutions) 1
In effect Sept. 30, 1984
Percent
1
2
3
4
Savings
Negotiable order of withdrawal accounts
Negotiable order of withdrawal accounts of $2,500 or more 2
Money market deposit account 2
Time accounts by maturity
5 7-31 days of less than $2,5004
6 7-31 days of $2,500 or more 2
7 More than 31 days
1. Effective Oct. 1, 1983, restrictions on the maximum rates of interest payable
by commercial banks and thrift institutions on various categories of deposits were
removed. For information regarding previous interest rate ceilings on all categories of accounts see earlier issues of the FEDERAL RESERVE BULLETIN, the
Federal Home Loan Bank Board Journal, and the Annual Report of the Federal
Deposit Insurance Corporation before November 1983.
2. Effective Dec. 1, 1983, IRA/Keogh (HR10) Plan accounts are not subject to
minimum deposit requirements.
3. Effective Dec. 14,1982, depository institutions are authorized to offer a new
account with a required initial balance of $2,500 and an average maintenance
balance of $2,500 not subject to interest rate restrictions. No minimum maturity
Effective date
Percent
Effective date
5'/!
1/1/84
12/31/80
1/5/83
12/14/82
5 '/i
5'/4
7/1/79
12/31/80
1/5/83
12/14/82
51*
1/1/84
1/5/83
10/1/83
5>/2
9/1/82
1/5/83
10/1/83
S'/4
period is required for this account, but depository institutions must reserve the
right to require seven days notice before withdrawals. When the average balance
is less than $2,500, the account is subject to the maximum ceiling rate of interest
for NOW accounts; compliance with the average balance requirement may be
determined over a period of one month. Depository institutions may not guarantee
a rate of interest for this account for a period longer than one month or condition
the payment of a rate on a requirement that the funds remain on deposit for longer
than one month.
4. Deposits of less than $2,500 issued to governmental units continue to be
subject to an interest rate ceiling of 8 percent.
Policy Instruments
1.17
A9
FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1984
Type of transaction
1981
1982
1983
Jan.
Mar.
Feb.
Apr.
May
July
June
U . S . GOVERNMENT SECURITIES
Outright transactions (excluding matched
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
13,899
6,746
0
1,816
17,067
8,369
0
3,000
18,888
3,420
0
2,400
0
1,967
0
1,300
368
828
0
600
3,159
0
0
0
3,283
0
0
3,283
610
2,003
0
2,200
801
0
0
801
0
897
0
600
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
317
23
13,794
-12,869
0
312
0
17,295
-14,164
0
484
0
18,887
-16,553
87
0
0
573
1,530
0
0
0
-2,488
-4,574
0
0
0
1,012
0
0
198
0
347
-2,223
0
0
0
2,739
-1,807
0
0
0
1,069
0
0
0
0
427
-2,606
0
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,702
0
-10,299
10,117
1,797
0
-14,524
11,804
1,896
0
-15,533
11,641
0
0
-487
1,530
0
0
2,488
2,861
0
0
-1,012
0
808
0
-273
2,223
0
0
-2,279
1,150
0
0
-1,069
0
0
0
-345
2,606
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
393
0
-3,495
1,500
388
0
-2,172
2,128
890
0
-2,450
2,950
0
300
-86
0
0
0
97
1,000
0
0
0
0
200
0
-75
0
0
0
-383
400
0
0
0
0
0
0
-83
0
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
379
0
0
1,253
307
0
-601
234
383
0
-904
1,962
0
0
0
0
0
0
-97
713
0
0
0
0
277
0
0
0
0
0
-77
257
0
0
0
0
0
0
0
0
22
23
24
All maturities
Gross purchases
Gross sales
Redemptions
16,690
6,769
1,816
19,870
8,369
3,000
22,540
3,420
2,487
0
2,267
1,300
368
828
600
3,159
0
0
1,484
0
0
610
2,003
2,200
801
0
0
0
897
600
25
26
Matched transactions
Gross sales
Gross purchases
589,312
589,647
543,804
543,173
578,591
576,908
54,833
58,096
55,656
47,310
66,827
73,634
72,293
71,754
79,313
79,608
61,017
61,331
81,799
81,143
27
28
Repurchase agreements
Gross purchases
Gross sales
79,920
78,733
130,774
130,286
105,971
108,291
14,245
15,629
0
0
4,9%
4,9%
15,313
8,220
8,267
12,199
23,298
26,460
14,830
14,830
9,626
8,358
12,631
-1,688
-9,407
9,966
11,321
-7,228
-2,047
-2,154
494
0
108
0
0
189
0
0
292
0
0
40
0
0
38
0
0
10
0
0
2
0
0
40
0
0
15
0
0
-1
13,320
13,576
18,957
18,638
8,833
9,213
931
1,139
0
0
609
609
1,247
820
616
744
1,819
2,117
958
958
130
130
-672
-248
-38
-10
424
-169
-313
-1
36 Repurchase agreements, net
-582
1,285
-1,062
-418
0
0
305
122
-426
0
37 Total net change in System Open Market
Account
9,175
9,773
10,897
-2,354
9,956
12,050
-7,275
-2,786
-2,155
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
30
31
32
Outright transactions
Gross purchases
Gross sales
Redemptions
33
34
Repurchase agreements
Gross purchases
Gross sales
35 Net change in federal agency obligations
BANKERS ACCEPTANCES
NOTE: Sales, redemptions, and negative figures reduce holdings of the System
Open Market Account; all other figures increase such holdings. Details may not
add to totals because of rounding.
-9,444
A10
1.18
DomesticNonfinancialStatistics • September 1984
FEDERAL RESERVE BANKS
Millions of dollars
Condition and Federal Reserve Note Statements
Wednesday
1984
Account
Aug. 1
End of month
1984
Aug. 15
Aug. 8
Aug. 22
Aug. 29
June
July
Aug.
Consolidated condition statement
ASSETS
11,099
4,618
455
11,099
4,618
460
11,098
4,618
462
11,100
4,618
435
11,099
4,618
444
11,098
4,618
454
8,775
0
7,385
0
12,787
0
7,826
0
8,166
0
4,760
0
7,238
0
8,276
0
0
0
0
0
0
0
0
0
8,494
0
8,494
0
8,494
0
8,494
0
8,494
0
8,501
0
8,499
0
8,494
369
65,421
63,870
22,061
151,352
0
151,352
64,729
63,870
22,061
150,660
0
150,660
58,758
63,894
22,037
144,689
0
144,689
64,461
63,894
22,037
150,392
0
150,392
63,123
63,894
22,037
149,054
0
149,054
66,928
63,870
22,061
152,859
0
152,859
64,774
63,870
22,061
150,705
0
150,705
62,425
63,894
22,037
148,356
4,827
153,183
168,621
166,539
165,970
166,712
165,714
166,120
166,442
170,322
8,496
555
7,720
556
7,541
555
6,457
556
6,130
556
6,350
556
9,747
555
6,808
554
3,638
4,801
3,640
5,049
3,643
3,754
3,646
3,987
3,651
4,047
3,733
5,297
3,638
4,821
3,672
4,064
199,667
197,635
197,535
196,276
198,209
201,364
201,590
160,551
161,460
161,407
160,566
160,712
159,915
160,402
161,551
23,640
3,586
256
533
21,207
4,220
228
246
18,222
4,393
205
289
20,611
3,358
233
485
19,192
3,783
215
428
20,252
4,397
237
432
21,355
3,972
215
309
22,733
4,029
242
413
25,901
23,109
24,687
23,618
25,318
25,851
27,417
7,892
2,530
6,495
2,379
7,277
2,404
6,419
2,422
6,154
2,356
7,005
2,528
9,076
2,463
6,482
2,591
198,988
20 Total assets
11,099
4,618
446
28,015
15 Total loans and securities
16 Cash items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies 2
19 All other 3
11,099
4,618
445
202,273
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4 To depository institutions
Other
5
Acceptances—Bought outright
6
Held under repurchase agreements
Federal agency obligations
7
Bought outright
8
Held under repurchase agreements
U.S. government securities
Bought outright
9
Bills
10
Notes
11
Bonds
12
Total bought outright 1
13 Held under repurchase agreements
14 Total U.S. government securities
196,235
194,197
194,094
192,840
194,766
197,792
198,041
1,545
1,465
275
1,554
1,465
413
1,557
1,465
416
1,556
1,465
420
1,558
1,465
413
1,541
1,465
437
1,545
1,465
562
1,557
1,465
527
202,273
199,667
197,635
197,535
196,276
198,209
201,364
201,590
115,046
117,389
119,120
117,709
118,930
116,234
115,318
119,421
LIABILITIES
21 Federal Reserve notes
Deposits
22 To depository institutions
23
U.S. Treasury—General account
24
Foreign—Official accounts
25 Other
26 Total deposits
27 Deferred availability cash items
28 Other liabilities and accrued dividends 4
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
33 Total liabilities and capital accounts
34 MEMO: Marketable U.S. government securities held in
custody for foreign and international account
Federal Reserve note statement
35 Federal Reserve notes outstanding
36
LESS: Held by bank
37
Federal Reserve notes, net
Collateral held against notes net:
38 Gold certificate account
39 Special drawing rights certificate account
40
Other eligible assets
41
U.S. government and agency securities
188,565
28,014
160,551
188,662
27,202
161,460
188,886
27,479
161,407
189,108
28,542
160,566
189,348
28,636
160,712
187,637
27,722
159,915
188,428
28,026
160,402
189,217
27,666
161,551
11,099
4,618
0
144,834
11,099
4,618
0
145,743
11,099
4,618
0
145,690
11,099
4,618
0
144,849
11,098
4,618
0
144,996
11,100
4,618
0
144,197
11,099
4,618
0
144,685
11,098
4,618
0
145,835
42 Total collateral
160,551
161,460
161,407
160,566
160,712
159,915
160,402
161,551
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Assets shown in this line are revalued monthly at market exchange rates.
3. includes special investment account at Chicago of Treasury bills maturing
within 90 days.
4. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
NOTE: Some of these data also appear in the Board's H.4.1 (503) release. For
address, see inside front cover.
Reserve Banks; Banking Aggregates
1.19
FEDERAL RESERVE BANKS
A11
Maturity Distribution of Loan and Security Holdings
Millions of dollars
Wednesday
1984
Type and maturity groupings
End of month
1984
Aug. 1
Aug. 8
Aug. 15
Aug. 22
Aug. 29
June 29
July 31
Aug. 31
1 Loans—Total
2 Within 15 days
3
16 days to 90 days
4 91 days to 1 year
8,775
8,554
221
0
7,385
7,169
216
0
12,787
12,496
291
0
7,826
7,792
34
0
8,166
8,109
57
0
4,760
4,674
86
0
7,238
7,135
103
0
8,276
8,111
165
0
5 Acceptances—Total
6
Within 15 days
7
16 days to 90 days
8 91 days to 1 year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
151,352
5,542
31,435
44,702
36,329
14,256
19,088
150,660
7,032
31,395
42,560
36,329
14,256
19,088
144,689
3,583
25,677
47,268
33,985
14,808
19,368
150,392
7,254
30,049
44,928
33,985
14,808
19,368
149,054
7,293
29,081
44,519
33,985
14,808
19,368
152,859
5,129
34,053
45,112
35,138
14,339
19,088
150,705
3,013
33,317
44,702
36,329
14,256
19,088
153,183
8,544
33,105
44,040
33,318
14,808
19,368
8,494
0
613
1,799
4,371
1,312
399
8,494
0
698
1,714
4,371
1,312
399
8,494
103
685
1,654
4,341
1,312
399
8,494
184
604
1,654
4,341
1,312
399
8,494
202
523
1,754
4,304
1,312
399
8,501
159
519
1,647
4,476
1,301
399
8,499
85
613
1,719
4,371
1,312
399
8,863
571
523
1,754
4,304
1,312
399
9 U.S. government securities—Total
10 Within 15 days'
n
16 days to 90 days
12 91 days to 1 year
13 Over 1 year to 5 years
14 Over 5 years to 10 years
15 Over 10 years
16 Federal agency obligations—Total
17 Within 15 days'
18
16 days to 90 days
19 91 days to 1 year
20 Over 1 year to 5 years
21 Over 5 years to 10 years
22 Over 10 years
,
1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.
A12
1.20
DomesticNonfinancialStatistics • September 1984
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE
Billions of dollars, averages of daily figures
1980
Dec.
1981
Dec.
1982
Dec.
1983
Dec.
1983
1984
Jan.
Dec.
2
3
4
5
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3
Required reserves
Monetary base 4
Mar.
Apr.
May
June
July
Seasonally adjusted
ADJUSTED FOR
1 Total reserves2
Feb.
30.64
31.51
33.63
35.28
28.95
28.95
30.13
150.11
30.88
31.03
31.20
157.82
33.00
33.18
33.13
169.81
34.51
34.51
34.72
184.97
35.50
36.07
36.10
36.10
36.43
37.23
37.18
34.51 34.79
34.51 34.79
34.72 34.89
184.97 186.94
35.50
35.50
35.12
188.58
35.15
35.18
35.40
188.72
34.87
34.91
35.61
189.66
33.44
33.48
35.85
191.26
33.93
35.80
36.47
193.12
31.25
36.26
36.57
194.03
36.46
35.76
36.76
36.80
35.23
35.28
35.97
189.66'
32.78
32.81
35.19
190.33
33.46
35.33
35.99
193.20
30.88
35.89
36.20
194.86
35.28
Not seasonally adjusted
6 Total reserves2
7
8
9
10
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3
Required reserves
Monetary base 4
31.34
32.23
34.35
36.00
36.00
37.30
29.65
29.65
30.82
152.80
31.59
31.74
31.91
160.65
33.71
33.90
33.85
172.83
35.22
35.23
35.44
188.23
35.22
35.23
35.44
188.23
36.59
36.59
36.69
188.10
38.89
40.12
36.37
36.28
37.15
36.52
37.52
37.46
38.12 39.41
38.12 39.41
38.33 39.51
192.36 192.30
35.80
35.80
35.42
186.67
35.33
35.33
35.57
187.81
35.92
35.78
36.66
190.34
33.53
33.83
35.94
191.08'
34.22
36.22
36.75
193.96
31.54
36.38
36.86
195.53
35.65
35.63
35.09 34.68
35.09 34.71r
34.71 34.92r
185.93 187.17
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
40.66
41.93
41.85
38.89
38.97
38.97
40.15
163.00
41.29
41.44
41.61
170.47
41.22
41.41
41.35
180.52
38.12
38.12
38.33
192.36
1. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
2. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash used to satisfy reserve
requirements. Such vault cash consists of all vault cash held during the lagged
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
3. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
4. The monetary base not adjusted for discontinuities consists of total reserves
plus required clearing balances and adjustments to compensate for float at Federal
Reserve Banks and the currency component of the money stock less the amount
of vault cash holdings of thrift institutions that is included in the currency
component of the money stock plus, for institutions not having required reserve
balances, the excess of current vault cash over the amount applied to satisfy
current reserve requirements. After the introduction of contemporaneous reserve
requirements (CRR), currency and vault cash figures are measured over the
weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock and the remaining items seasonally
adjusted as a whole.
5. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated
with implementation of the Monetary Control Act or other regulatory changes to
reserve requirements.
NOTE. Latest monthly and biweekly figures are available from the Board's
H.3(502) statistical release. Historical data and estimates of the impact on
required reserves of changes in reserve requirements are available from the
Banking Section, Division of Research and Statistics, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
Monetary Aggregates
1.21
A13
MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Billions of dollars, averages of daily figures
1984
1980
Dec.
1981
Dec.
1982
Dec.
1983
Dec.
Apr.
May
June
July
Seasonally adjusted
1 Ml
? M2
M3
4 L
5 Debt 2
414.9
1,632.6
1,989.8
2,326.0
3,946.9
441.9
1,796.6
2,236.7
2,598.4
4,323.8
480.5
1,965.3
2,460.3
2,868.7
4,710.1
525.3
2,196.2
2,708.0r
3,178.1'
5,225.2'
535.3'
2,242.8'
2,790.0'
3,295.3'
5,452.6'
541.0'
2,258.6'
2,816.1'
3,327.3'
5,513.3'
546.2'
2,271.6'
2,837.8'
3,369.2
5,565.6
545.6
2,281.1
2,858.8
n.a.
n.a.
116.7
4.2
266.5
27.6
124.0
4.3
236.2
77.4
134.1
4.3
239.7
102.4
148.0
4.9
243.7
128.8
151.8
5.1
245.3
133.2
152.9
5.1
245.3
137.8
154.2
5.1
248.3
138.6'
155.0
5.2
247.1
138.3
1,217.7
357.2
1,354.6
440.2
1,484.8
495.0
1,670.9
511.8'
1,707.5
547.1'
1,717.5'
557.5'
1,725.4'
566.2'
1,735.5
577.7
6
7
8
9
Ml components
Currency 2
Travelers checks 3
Demand deposits 4
Other checkable deposits 5
10
11
Nontransactions components
In M26
In M3 only 7
1?
13
Savings deposits 9
Commercial Banks
Thrift Institutions
185.9
215.6
159.7
186.1
164.9
197.2
134.6
178.2
128.6
176.9
128.2
177.3
128.0
177.2
127.4
176.0
14
15
Small denomination time deposits'
Commerical Banks
Thrift Institutions
287.5
443.9
349.6
477.7
382.2
474.7
353.1
440.0
356.0
452.4
360.5
456.1'
365.7
463.3'
371.8
473.8
16
17
Money market mutual funds
General purpose and broker/dealer
Institution-only
61.6
15.0
150.6
36.2
185.2
48.4
138.2
40.3
146.0
41.8
146.5
42.0
148.8
42.3
150.4
42.6
18
19
Large denomination time deposits 10
Commercial Banks"
Thrift Institutions
213.9
44.6
247.3
54.3
261.8
66.1
225.5
100.4
236.4
119.5
243.8
123.8
249.7'
129.4
255.2
134.0
70
21
Debt components
Federal debt
Non-federal debt
742.8
3,204.1
830.1
3,493.7
991.4
3,718.7
1,173.1'
4,052.1'
1,236.5'
4,216.1'
1,252.5'
4,260.9'
1,260.2
4,305.5
n.a.
n.a.
Not seasonally adjusted
??
73
74
75
26
Ml
M2
M3
L
Debt 2
27
28
29
30
Ml components
Currency 2
Travelers checks 3
Demand deposits 4
Other checkable deposits 5
31
32
Nontransactions components
M26
M3 only 7
33
34
537.8
2,198.0
2,714.1'
3,186.0'
5,219.2'
543.2
2,254.7
2,798.5'
3,306.8'
5,426.6'
543.9
2,253.5'
2,811.4'
3,323.2'
5,486.8'
545.5
2,273.4'
2,836.5'
3,365.2
5,543.5
547.3
2,286.3
2,857.7
n.a.
n.a.
136.4
4.1
247.3
104.1
150.5
4.6
251.6
131.2
151.5
4.8
247.8
139.0
152.9
5.0
241.3
135.8
154.9
5.4
247.0
138.1'
156.3
5.8
247.5
137.8
1,475.5
499.2
1,660.2
516.1'
1,711.5
543.8'
1,718.6'
557.9'
1,728.0'
563.1'
1,738.8
571.5
n.a.
n.a.
26.3
16.6
230.0
145.9
245.4
151.0
244.3
150.2
244.9
148.0
243.9
145.0
183.8
214.4
157.5
184.7
162.1
195.5
132.0
176.5
130.5
178.1'
129.9
178.3
129.7
178.9
128.9
178.1
286.0
442.3
347.7
475.6
380.1
472.4
351.0
437.6
356.5
454.2
360.5
457.2'
365.4
463.7'
370.7
473.6
Money market mutual funds
General purpose and broker/dealer
Institution-only
61.6
15.0
150.6
36.2
185.2
48.4
138.2
40.3
146.0
41.8
146.5
42.0
148.8
42.3
150.4
42.6
41
42
Large denomination time deposits 10
Commercial Banks"
Thrift Institutions
218.5
44.3
252.1
54.3
266.2
66.2
229.0
100.7
233.7
118.2
241.6
123.3
247.3'
128.2
251.9
132.8
43
44
Debt components
Federal debt
Non-federal debt
742.8
3,204.1
830.1
3,943.7
991.4
3,718.7
1,170.2
4,049.0'
1,235.9
4,190.7'
1,248.7
4,238.1'
424.8
1,635.4
1,9%. 1
2,332.8
3,946.9
452.3
1,798.7
2,242.7
2,605.6
4,323.8
491.9
1,%7.4
2,466.6
2,876.5
4,710.1
118.8
3.9
274.7
27.4
126.1
4.1
243.6
78.5
1,210.6
360.7
1,346.3
444.1
Money market deposit accounts
Commercial banks
Thrift institutions
n.a.
n.a.
35
36
Savings deposits 8
Commercial Banks
Thrift Institutions
37
38
Small denomination time deposits 9
Commercial Banks
Thrift Institutions
39
40
For notes see bottom of next page.
1,255.8
4,287.8
n.a.
n.a.
A14
1.22
DomesticNonfinancialStatistics • September 1984
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.
1984
Bank group, or type of customer
1981'
1982'
1983'
Feb.
1
2
3
4
5
6
7
8
9
10
Demand deposits 2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 3
Savings deposits 4
Apr.
May
June
July
Seasonally adjusted
DEBITS TO
Demand deposits 2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 3
Savings deposits 4
Mar.
80,858.7
33,891.9
46,966.9
743.4
672.7
90,914.4
37,932.9
52,981.6
1,036.2
721.4
108,646.4
47,336.9
61,309.5
1,394.9
735.7
126,749.9
55,776.7
70,973.1
1,491.1
708.3
116,416.7
50,765.2
65,651.5
1,464.9
688.9
129,229.4
57,868.3
71,361.1
1,432.1
606.5
131,456.9
60,351.3
71,105.6
1,608.9
688.8
121,488.2
53,147.7
68,340.4
1,515.8
677.9
128,299.3
55.340.6
72.958.7
1,658.9
682.4
285.8
1,105.1
186.2
14.0
4.1
324.2
1,287.6
211.1
14.5
4.5
376.8
1,512.0
238.5
15.5
5.3
434.7
1,747.7
273.3
15.0
5.5
394.9
1,649.5
248.7
14.7
5.4
441.7
2,012.5
270.5
14.6
4.8
442.7
1,938.7
267.5
16.0
5.5
401.8
1,665.2
252.7
15.1
5.4
433.0
1,774.3
275.2
16.6
5.5
DEPOSIT TURNOVER
Not seasonally adjusted
DEBITS TO
2
Demand deposits
11 All insured banks
12 Major New York City banks
13 Other banks
14 ATS-NOW accounts 3
15 MMDA 5
16 Savings deposits 4
81,197.9
34,032.0
47,165.9
737.6
0
672.9
91,031.9
38,001.0
53,030.9
1,027.1
0
720.0
108,459.5
47.238.2
61.221.3
1,387.5
567.4
736.4
114,721.3
50,724.8
63,996.5
1,389.5
682.1
649.9
124,088.6
54,301.1
69,787.5
1,504.3
790.3
711.9
121,514.4
53,514.4
68,000.0
1,670.1
918.9
665.7
132,521.7
60,214.5
72,307.2
1,599.0
883.6
673.8
128,522.3
57,168.1
71,354.3
1,621.7
894.8
686.2
124,604.3
54,060.5
70,543.8
1,598.5
891.7
686.3
286.1
1,114.2
186.2
14.0
0
4.1
325.0
1,295.7
211.5
14.3
0
4.5
376.1
1,510.0
238.1
15.4
2.8
5.3
402.7
1,618.7
252.4
14.3
2.9
5.1
431.8
1,795.5
271.4
15.2
3.3
5.5
410.8
1,770.2
256.0
16.4
3.8
5.2
456.8
1,997.1
278.1
16.1
3.6
5.3
428.6
1,792.0
266.3
16.2
3.7
5.4
418.1
1,738.1
264.3
16.0
3.7
5.4
DEPOSIT TURNOVER
17
18
19
20
21
22
Demand deposits 2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 3
MMDA 5
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
availability starts with December 1978.
4. Excludes ATS and NOW accounts, MMDA and special club accounts, such
as Christmas and vacation clubs.
5. Money market deposit accounts.
NOTE. Historical data for demand deposits are available back to 1970 estimated
in part from the debits series for 233 SMSAs that were available through June
1977. Historical data for ATS-NOW and savings deposits are available back to
July 1977. Back data are available on request from the Banking Section, Division
of Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
These data also appear on the Board's G.6 (406) release. For address, see inside
front cover.
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 on an end-of-month basis.
2. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
commercial banks. Excludes the estimated amount of vault cash held by thrift
institutions to service their OCD liabilities.
3. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
4. Demand deposits at commercial banks and foreign-related institutions other
than those due to domestic banks, the U.S. government, and foreign banks and
official institutions less cash items in the process of collection and Federal
Reserve float. Excludes the estimated amount of demand deposits held at
commercial banks by thrift institutions to service their OCD liabilities.
5. Consists of NOW and ATS balances at all depository institutions, credit
union share draft balances, and demand deposits at thrift institutions. Other
checkable deposits seasonally adjusted equals the difference between the seasonally adjusted sum of demand deposits plus OCD and seasonally adjusted demand
deposits. Included are all ceiling free "Super NOWs," authorized by the
Depository Institutions Deregulation committee to be offered beginning Jan. 5,
1983.
6. Sum of overnight RPs and overnight Eurodollars, money market fund
balances (general purpose and broker/dealer), MMDAs, and savings and small
time deposits, less the consolidation adjustment that represents the estimated
amount of demand deposits and vault cash held by thrift institutions to service
their time and savings deposits liabilities.
7. Sum of large time deposits, term RPs and term Eurodollars of U.S.
residents, money market fund balances (institution-only), less a consolidation
adjustment that represents the estimated amount of overnight RPs and Eurodollars held by institution-only money market funds.
8. Savings deposits exclude MMDAs.
9. Small-denomination time deposits—including retail RPs— are those issued
in amounts of less than $100,000. All individual retirement accounts (IRA) and
Keogh accounts at commercial banks and thrifts are subtracted from small time
deposits.
10. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
11. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
NOTE: Latest monthly and weekly figures are available from the Board's H.6
(508) release. Historical data are available from the Banking Section, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Commercial Banks
1.23
A15
LOANS A N D SECURITIES All Commercial Banks'
Billions of dollars; averages of Wednesday figures
1982
Dec.
Dec.
1984
1983
1982
Dec.
Dec.
1984
1983
Category
Apr.
May
June
July
Seasonally adjusted
1 Total loans and securities3
2 U.S. Treasury securities
3 Other securities
4 Total loans and leases 3
5 Commercial and industrial
loans
6
Real estate loans
7
Loans to individuals
8 Security loans
9
Loans to nonbank financial
institutions
10 Agricultural loans
11 Lease financing receivables...
12 All other loans
Apr.
May
June
July
Not seasonally adjusted
1,412.0
1,566.5
1,630.6
1,650.1
1,653.2
1,665.4
1,422.4
1,577.8
1,630.1
1,643.0
1,650.5
1,658.6
130.9
239.2
1,042.0
188.0
247.5
1,131.0
185.9
250.5
1,194.2
186.4
249.6
1,214.0
182.0
247.9
1,223.3
183.1
247.3
1,235.0
131.5
240.6
1,050.3
188.8
249.0
1,140.0
189.2
250.4
1,190.4
185.6
249.8
1,207.6
182.5
247.6
1,220.4
181.7
246.1
1,230.8
392.3
303.1
191.9
24.7
413.8
334.6
219.2
27.3
437.2
350.5
235.3
26.9
447.6
354.6
239.7
27.2
453.2
359.3
243.9
24.6
456.7
362.7
248.2
24.7
394.5
304.0
193.2
25.5
416.2
335.6
220.7
28.2
439.7
349.4
233.6
26.9
447.7
353.2
238.3
26.1
452.4
357.5
242.9
25.8
455.3
361.6
247.0
24.1
31.1
36.3
13.1
49.5
29.7
39.6
13.1
53.7
30.9
40.6
13.5
59.5
31.7
40.8
13.6
59.0
31.9
41.0
13.7
55.9
32.1
41.1
13.7
55.7
32.1
36.3
13.1
51.5
30.6
39.6
13.1
55.9
30.7
39.9
13.5
56.8
31.3
40.6
13.6
56.9
31.5
41.2
13.7
55.5
31.5
41.6
13.7
56.0
1,415.0
1,568.9
1,633.7
1,652.9
1,655.9
1,668.3
1,425.4
1,580.2
1,633.2
1,645.8
1,653.2
1,661.4
1,044.9
2.9
1,133.4
2.4
1,197.4
3.1
1,216.9
2.8
1,226.0
2.7
1,237.8
2.9
1,053.3
2.9
1,142.4
2.4
1,193.5
3.1
1,210.4
2.8
1,223.1
2.7
1,233.7
2.9
394.5
415.6
439.1
449.5
455.2
458.8
396.8
418.0
441.6
449.7
454.4
457.3
2.3
8.5
1.8
8.2
1.9
9.6
2.0
9.9
1.9
9.6
2.0
10.1
2.3
9.5
1.8
9.1
1.9
8.8
2.0
9.3
1.9
9.7
2.0
10.1
383.7
373.4
10.3
13.5
405.5
395.3
10.3
12.7
427.6
415.5
12.1
13.0
437.7
424.7
12.9
12.7
443.6
430.6
13.0
12.6
446.6
434.2
12.5
12.5
385.1
372.6
12.4
14.5
407.1
394.5
12.6
13.6
430.8
418.9
12.0
12.5
438.4
426.6
11.8
12.2
442.8
431.2
11.6
12.2
445.2
433.2
12.0
12.2
MEMO
13 Total loans and securities plus
loans sold3'4
14 Total loans plus loans sold3-4 . . .
15 Total loans sold to affiliates 3 ' 4 ...
16 Commercial and industrial loans
plus loans sold 4
17 Commercial and industrial
loans sold4
18 Acceptances held
19 Other commercial and industrial loans
20
To U.S. addressees 5
21
To non-U.S. a d d r e s s e e s . . . .
22 Loans to foreign banks
1. Includes domestically chartered banks; U.S. branches and agencies of
foreign banks, New York investment companies majority owned by foreign
banks, and Edge Act corporations owned by domestically chartered and foreign
banks.
2. Beginning December 1981, shifts of foreign loans and securities from U.S.
banking offices to international banking facilities (IBFs) reduced the levels of
several items. Seasonally adjusted data that include adjustments for the amounts
shifted from domestic offices to IBFs are available in the Board's G.7 (407)
statistical release (available from Publications Services, Board of Governors of
the Federal Reserve System, Washington, D.C. 20551).
3. Excludes loans to commercial banks in the United States.
4. 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.
5. United States includes the 50 states and the District of Columbia.
NOTE. Data are prorated averages of Wednesday estimates for domestically
chartered banks, based on weekly reports of a sample of domestically chartered
banks and quarterly reports of all domestically chartered banks. For foreignrelated institutions, data are averages of month-end estimates based on weekly
reports from large agencies and branches and quarterly reports from all agencies,
branches, investment companies, and Edge Act corporations engaged in banking.
These data also appear in the Board's G.7 (407) release. For address, see inside
front cover.
A16
1.24
DomesticNonfinancialStatistics • September 1984
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 '
Monthly averages, billions of dollars
1981
1982
Dec.
Dec.
1983
1984
source
1
2
3
4
5
6
Total nondeposit funds
Seasonally adjusted 2
Not seasonally adjusted
Federal funds, RPs, and other
borrowings from nonbanks 3
Seasonally adjusted
Not seasonally adjusted
Net balances due to foreign-related
institutions, not seasonally
adjusted
Loans sold to affiliates, not
seasonally adjusted 4
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
96.3
98.1
82.9
84.9
85.4
86.5
82.0
83.0
96.3
99.6
100.3
102.5
98.2
99.3
102.3
103.8
108.1
109.5
111.7
112.9
116.7
121.0
105.3
108.2
105.9
106.3
111.8
113.5
127.7
129.7
134.2
135.3
135.2
136.2
140.8
144.1
140.7
142.8
139.4
140.4
143.0
144.5
141.8
143.3
142.3
143.5
142.4
146.7
136.8
139.6
137.5
137.9
-18.1
-47.7
-51.3
-55.7
-47.0
-42.7
-43.6
-43.2
-36.9
-33.8
-28.5
-34.1
-34.4
2.8
2.9
2.6
2.6
2.5
2.4
2.4
2.5
3.1
3.1
2.8
2.7
2.9
-22.4
54.9
32.4
-39.6
72.2
32.6
-46.3
74.7
28.3
-48.5
76.4
27.9
-43.0
76.5
33.6
-39.8
75.3
35.5
-38.8
73.2
34.5
-39.0
74.7
35.7
-34.9
73.8
38.8
-33.2
73.6
40.3
-29.9
73.5
43.6
-32.9'
73.8
40.8
-33.0
71.2
38.1
4.3
48.1
52.4
-8.1
54.7
46.6
-5.0
53.5
48.5
-7.2
55.5
48.3
-4.0
53.5
49.5
-3.0
54.1
51.1
-4.8
53.4
48.6
-4.2
53.0
48.8
-1.9
50.2
48.3
-0.6
49.7
49.2
1.4
50.(V
51.4'
-1.2'
51.C
49.8
-1.4
52.2
50.8
59.0
59.2
71.0
71.2
78.1
77.3
79.9
79.1
83.3
84.6
84.8
85.1
85.5
84.6
86.9
86.5
85.5
85.1
86.9
86.2
84.0
86.4
79.0
80.0
79.9
78.4
12.2
11.1
12.8
10.8
16.7
17.9
18.9
24.7
12.0
7.5
13.1
10.8
16.5
19.6
20.6
22.3
16.7
17.5
15.9
16.5
12.2
12.8
12.9
12.4
11.7
11.8
325.4
330.4
347.9
354.6
282.8
284.7
278.3
280.3
280.7
283.0
283.1
288.1
284.4
287.1
283.8
285.0
289.2
288.8
292.4'
288.7
302.9'
298.8'
312.7'
307.7'
315.8
311.6
MEMO
7 Domestically chartered banks' net
positions with own foreign
branches, not seasonally
adjusted 5
8
Gross due from balances
9
Gross due to balances
10 Foreign-related institutions' net
positions with directly related
institutions, not seasonally
adjusted 6
11 Gross due from balances
12 Gross due to balances
Security RP borrowings
13 Seasonally adjusted"
14 Not seasonally adjusted
U.S. Treasury demand balances 8
15 Seasonally adjusted
16 Not seasonally adjusted
Time deposits, $100,000 or more 9
17 Seasonally adjusted
18 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 and loans to affiliates.
Includes averages of Wednesday data for domestically chartered banks and
averages of current and previous month-end data for foreign-related institutions.
3. Other borrowings are borrowings on any instrument, such as a promissory
note or due bill, given for the purpose of borrowing money for the banking
business. This includes borrowings from Federal Reserve Banks and from foreign
banks, term federal funds, overdrawn due from bank balances, loan RPs, and
participations in pooled loans. Includes averages of daily figures for member
banks and averages of current and previous month-end data for foreign-related
institutions.
4. Loans initially booked by the bank and later sold to affiliates that are still
held by affiliates. Averages of Wednesday data.
5. Averages of daily figures for member and nonmember banks.
6. Averages of daily data.
7. Based on daily average data reported by 122 large banks.
8. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
9. Averages of Wednesday figures.
NOTE. These data also appear in the Board's G. 10 (411) release. For address see
inside front cover.
Banking Institutions
1.25
ASSETS A N D LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Billions of dollars except for number of banks
A17
Last-Wednesday-of-Month Series
1983
1982
Sept.
Oct.
Nov.
Dec.
Dec.
Mar.
Apr.
May
June
July
Aug.
1,370.3
1,000.7
356.7
644.0
129.0
240.5
1,392.2
1,001.7
358.0
643.7
150.6
239.9
1,403.8
1,005.1
357.9
647.2
155.5
243.3
1,411.9
1,007.5
356.7
650.8
160.9
243.5
1,435.1
1,025.6
360.1
665.6
166.0
243.5
1,437.4
1,029.1
361.1
668.0
165.1
243.3
1,457.0
1,043.4
363.0
680.4
167.5
246.1
1,466.1
1,049.7
364.0
685.7
171.2
245.2
1,483.0
1,060.3
367.0
693.3
176.8
245.9
1,502.3
1,075.5
372.8
702.7
180.4
246.4
1,525.2
1,095.1
380.8
714.4
181.4
248.7
184.4
23.0
25.4
67.6
68.4
168.9
19.9
20.5
67.1
61.5
170.1
20.4
23.9
66.1
59.6
164.5
20.3
22.4
65.6
56.3
176.9
21.3
18.8
69.7
67.1
168.7
20.7
20.6
67.1
60.3
176.9
21.0
22.5
69.0
64.4
160.0
20.8
15.4
66.7
56.9
164.0
20.5
19.7
67.1
56.6
179.0
22.3
17.6
70.9
69.0
190.5
23.3
18.6
75.6
73.0
DOMESTICALLY CHARTERED
COMMERCIAL BANKS'
1
2
3
4
5
6
7
8
9
10
11
Loans and securities, excluding
interbank
Loans, excluding interbank
Commercial and industrial
Other
U.S. Treasury securities
Other securities
Cash assets, total
Currency and coin
Reserves with Federal Reserve Banks
Balances with depository institutions .
Cash items in process of collection . . .
12
Other assets 2
265.3
257.9
252.4
248.3
253.2
254.5
257.2
252.3
253.0
261.9
253.8
13
Total assets/total liabilities and capital . . .
1,820.0
1,818.9
1,826.3
1,824.8
1,865.2
1,860.6
1,891.0
1,878.4
1,900.0
1,943.9
1,969.5
14
15
16
17
Deposits
Demand
Savings
Time
1,361.8
363.9
296.4
701.5
1,374.2
333.4
419.2
621.6
1,368.0
329.2
426.9
611.9
1,370.8
324.5
440.2
606.1
1,402.7
344.4
445.3
613.1
1,396.5
334.2
447.5
614.8
1,420.1
344.7
449.0
626.4
1,408.1
328.1
448.8
631.2
1,419.5
331.3
451.5
636.8
1,459.2
358.1
458.3
642.8
1,482.6
371.0
460.7
650.8
18
19
20
Borrowings
Other liabilities
Residual (assets less liabilities)
215.1
109.2
133.8
211.3
103.5
130.0
224.0
102.3
132.0
214.1
104.7
135.1
221.2
104.3
137.0
217.5
105.5
141.0
217.2
107.6
146.1
217.8
107.1
145.4
226.8
106.5
147.2
219.7
112.6
152.4
216.3
117.9
152.8
10.7
14,787
9.6
14,819
17.8
14,823
2.7
14,817
19.3
14,826
19.3
14,785
14.8
14,795
20.8
14,804
22.5
14,800
2.8
14,799
8.8
14,796
1,429.7
1,054.8
395.3
659.5
132.8
242.1
1,451.3
1,054.5
395.9
658.6
155.3
241.5
1,460.8
1,055.7
393.5
662.2
160.2
244.9
1,467.6
1,056.4
391.7
664.7
166.1
245.2
1,491.5
1,075.2
395.3
679.9
171.3
245.1
1,494.1
1,078.8
397.7
681.2
170.3
245.0
1,515.4
1,094.9
400.6
694.3
172.7
247.8
1,525.4
1,102.5
402.7
699.8
176.1
246.9
1,541.8
1,112.2
405.3
706.8
182.0
247.7
1,563.2
1,129.2
412.0
717.2
185.9
248.1
1,586.8
1,149.3
420.1
729.2
186.9
250.6
200.7
23.0
26.8
81.4
69.4
185.5
19.9
22.0
81.0
62.6
186.3
20.4
25.4
79.8
60.7
180.3
20.3
23.8
78.9
57.3
193.5
21.3
20.0
84.0
68.2
185.2
20.7
21.9
81.2
61.4
193.3
21.1
24.0
82.8
65.4
174.7
20.9
16.6
79.3
58.0
178.4
20.5
20.8
79.5
57.6
195.0
22.3
19.1
83.6
70.0
205.0
23.4
19.7
88.0
74.0
MEMO
21
22
U.S. Treasury note balances included in
borrowing
Number of banks
ALL COMMERCIAL BANKING
INSTITUTIONS 3
24
25
26
27
28
Loans and securities, excluding
interbank
Loans, excluding interbank
Commercial and industrial
Other
U.S. Treasury securities
Other securities
29
30
31
32
33
Cash assets, total
Currency and coin
Reserves with Federal Reserve Banks
Balances with depository institutions .
Cash items in process of collection . . .
34
Other assets 2
341.7
325.4
317.8
309.5
318.1
318.7
324.6
320.9
318.8
329.7
321.3
35
Total assets/total liabilities and capital . . .
1,972.1
1,962.2
1,964.9
1,957.4
2,003.2
1,998.0
2,033.3
2,021.0
2,039.1
2,088.0
2,113.1
36
37
38
39
Deposits
Demand
Savings
Time
1,409.7
376.2
296.7
736.7
1,419.5
345.7
419.7
654.1
1,411.0
341.1
427.3
642.6
1,413.1
336.4
440.7
636.0
1,443.8
356.4
445.7
641.6
1,438.1
346.4
448.0
643.8
1,461.4
356.6
449.5
655.3
1,448.9
340.0
449.3
659.5
1,459.0
343.2
452.0
663.8
1,499.4
369.9
458.8
670.6
1,524.8
383.2
461.3
680.4
40
41
42
Borrowings
Other liabilities
Residual (assets less liabilities)
278.3
148.4
135.7
269.9
141.1
131.9
281.3
138.6
133.9
269.5
137.9
137.0
278.2
142.3
138.9
277.9
139.1
142.9
280.5
143.4
148.0
282.6
142.3
147.3
289.6
141.5
149.1
282.5
151.9
154.2
275.1
158.6
154.7
10.7
15,329
9.6
15,376
17.8
15,390
2.7
15,385
19.3
15,396
19.3
15,359
14.8
15,370
20.8
15,382
22.5
15,383
2.8
15,382
8.8
15,380
23
MEMO
43
44
U.S. Treasury note balances included in
borrowing
Number of banks
1. Domestically chartered commercial banks include all commercial banks in
the United States except branches of foreign banks; included are member and
nonmember banks, stock savings banks, and nondeposit trust companies.
2. Other assets include loans to U.S. commercial banks.
3. Commercial banking institutions include domestically chartered commercial
banks, branches and agencies of foreign banks, Edge Act and Agreement
corporations, and New York State foreign investment corporations.
NOTE. Figures are partly estimated. They include all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries. Data for domestically chartered commercial banks are for the last Wednesday of the month. Data
for other banking institutions are estimates made on the last Wednesday of the
month based on a weekly reporting sample of foreign-related institutions and
quarter-end condition report data.
A18
1.26
DomesticNonfinancialStatistics • September 1984
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
1984
Account
July 4r
1 Cash and balances due from depository
105,493
institutions
771,470
2 Total loans, leases and securities, net
Securities
73,263
3 U.S. Treasury and government agency
8,692
4
Trading account
64,571
Investment account, by maturity
5
17,270
One year or less
6
34,995
7
Over one through five years
12,306
Over five years
8
46,591
9 Other securities
4,443
10 Trading account
42,148
11 Investment account
38,502
12
States and political subdivisions, by maturity
3,909
13
One year or less
34,594
14
Over one year
3,645
15
Other bonds, corporate stocks, and securities
2,411
16 Other trading account assets
Loans and leases
1
17 Federal funds sold
48,552
18 To commercial banks
34,746
19 To nonbank brokers and dealers in securities
9,146
20 To others
4,660
21 Other loans and leases, gross
615,819
22
Other loans, gross
604,012
23
Commercial and industrial
244,361
24
Bankers acceptances and commercial paper
4,267
25
All other
240,094
26
U.S. addressees
233,509
27
Non-U.S. addressees
6,585
28
Real estate loans
150,882
29
To individuals for personal expenditures
99,440
30
To depository and financial institutions
43,189
31
Commercial banks in the United States
10,065
32
Banks in foreign countries
6,779
33
Nonbank depository and other financial institutions.
26,345
34
For purchasing and carrying securities
14,311
35
To finance agricultural production
7,737
36
To states and political subdivisions
25,105
37
To foreign governments and official institutions . . . .
4,292
38
All other
14,694
39 Lease financing receivables
11,807
40 LESS: Unearned income
5,117
41
Loan and lease reserve
10,049
42 Other loans and leases, net
600,653
43 All other assets
145,922
44 Total assets
1,022,884
Deposits
45 Demand deposits
204,450
46
Individuals, partnerships, and corporations
153,670
47
States and political subdivisions
5,444
48
U.S. government
1,417
49 Depository institutions in United States
27,510
50 Banks in foreign countries
6,519
51
Foreign governments and official institutions
1,140
52 Certified and officers' checks
8,751
53 Transaction balances other than demand deposits
(ATS, NOW, Super NOW, telephone transfers)..
34,400
54 Nontransaction balances
432,311
55
Individuals, partnerships and corporations
401,599
56
States and political subdivisions
19,027
57
U.S. government
337
58 Depository institutions in the United States
8,101
59
Foreign governments, official institutions and banks . .
3,247
60 Liabilities for borrowed money
183,116
61
Borrowings from Federal Reserve Banks
4,445
62
Treasury tax-and-loan notes
2,459
2
63
All other liabilities for borrowed money
176,212
64
Other liabilities and subordinated note and debentures
101,733
65 Total liabilities
956,010
»
66 Residual (total assets minus total liabilities)3
66,874
July 1 l r
July 25'
Aug. 1
Aug. 8
Aug. 15
Aug. 22
Aug. 29
88,069
92,199
82,089
95,104
84,176
87,852
82,529
81,314
760,485
763,508
762,057
769,688
765,136
773,111
765,432
767,985
74,985
10,987
63,998
16,448
35,282
12,268
46,029
3,818
42,211
38,533
4,031
34,501
3,678
2,508
72,381
8,629
63,752
16,196
35,304
12,252
46,253
3,905
42,348
38,666
4,077
34,589
3,682
2,575
72,955
9,164
63,791
16,018
35,490
12,282
46,490
4,077
42,412
38,740
4,121
34,619
3,672
2,486
73,539
9,944
63,594
16,762
34,646
12,186
47,208
4,919
42,289
38,660
4,227
34,433
3,629
2,596
74,413
11,039
63,374
16,713
34,554
12,107
47,397
5,010
42,387
38,740
4,254
34,485
3,647
2,792
75,370
11,786
63,585
16,895
34,578
12,112
47,953
5,500
42,453
38,825
4,343
34,481
3,628
2,673
75,881
12,440
63,441
16,717
34,628
12,096
47,909
5,309
42,600
38,911
4,484
34,427
3,689
2,759
75,068
11,613
63,456
16,717
34,573
12,166
48,091
5,435
42,656
38,975
4,469
34,506
3,681
2,902
41,828
28,543
8,436
4,849
610,311
598,596
243,166
4,301
238,866
232,218
6,648
151,316
99,652
41,624
9,129
6,552
25,943
12,224
7,757
25,321
4,140
13,396
11,714
5,160
10,016
595,136
142,793
47,467
34,124
8,464
4,880
610,012
598,286
244,015
4,032
239,983
233,348
6,635
152,020
100,073
41,154
8,920
6,349
25,886
11,340
7,803
24,621
4,107
13,152
11,726
5,159
10,021
594,832
139,402
42,963
29,874
8,092
4,998
612,396
600,621
243,910
3,877
240,033
233,440
6,593
151,845
100,543
41,366
9,194
6,683
25,489
12,252
7,744
24,611
4,039
14,311
11,775
5,162
10,072
597,163
137,220
47,009
34,029
7,920
5,059
614,692
602,835
244,856
4,053
240,803
234,162
6,640
152,395
100,938
41,678
9,410
6,688
25,580
12,806
7,595
24,788
4,008
13,769
11,857
5,151
10,204
599,336
142,740
43,708
31,341
7,284
5,084
612,256
600,382
245,010
3,702
241,308
234,721
6,587
152,334
101,191
40,959
9,307
6,346
25,306
11,449
7,580
24,680
4,030
13,150
11,873
5,137
10,293
596,825
142,928
47,700
33,526
8,444
5,729
614,882
602,868
243,893
3,564
240,329
233,778
6,551
152,942
101,713
40,330
8,629
6,204
25,496
13,317
7,561
25,607
4,084
13,420
12,013
5,145
10,322
599,414
145,140
42,658
30,137
7,468
5,053
611,712
599,652
243,055
3,848
239,207
232,750
6,457
153,132
102,187
40,046
8,568
6,359
25,119
11,409
7,508
25,756
3,928
12,630
12,060
5,155
10,333
596,224
136,751
44,941
32,984
7,123
4,834
612,516
600,400
242,089
3,511
238,577
232,114
6,463
153,301
102,961
40,293
8,718
6,103
25,471
11,494
7,510
25,806
4,058
12,887
12,115
5,167
10,366
596,982
136,231
991,348
995,109
981,367
1,007,532
992,240
1,006,103
984,712
985,529
180,627
138,986
4,799
2,191
20,592
5,914
900
7,246
180,548
137,083
4,938
3,035
21,200
5,913
866
7,513
173,338
132,462
4,633
1,741
19,218
6,218
1,017
8,048
188,441
142,199
6,120
1,200
23,298
6,143
696
8,784
176,596
133,558
4,559
2,366
19,713
5,912
863
9,625
188,358
141,582
4,739
3,011
22,418
6,242
1,023
9,343
171,246
131,037
4,526
2,082
20,028
5,585
998
6,990
172,628
131,817
4,435
2,143
19,161
6,097
826
8,149
33,446
432,224
401,740
19,225
311
7,740
3,207
180,492
4,000
7,575
168,916
97,539
33,033
432,202
401,848
19,433
307
7,506
3,108
183,679
6,235
6,238
171,206
98,839
32,338
433,577
402,699
19,898
314
7,4%
3,171
177,215
6,217
7,923
163,075
98,062
33,356
434,057
403,134
19,808
331
7,528
3,256
187,492
8,040
9,986
169,466
96,874
33,427
435,310
403,648
20,269
312
7,562
3,517
184,805
6,750
2,492
175,563
94,670
33,069
436,508
404,223
20,736
319
7,721
3,508
186,066
12,075
1,450
172,541
94,985
32,561
436,110
403,648
20,959
315
7,744
3,444
183,116
6,992
5,415
170,710
94,410
32,261
436,107
403,344
21,158
325
7,848
3,431
185,432
7,260
4,688
173,484
91,919
924,328
928,301
914,530
940,221
924,809
938,986
917,444
918,346
67,019
66,808
66,838
67,311
67,431
67,116
67,268
67,183
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.
July 18r
3. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses,
NOTE. These data also appear in the Board's H.4.2 (504) release. For address,
see inside front cover.
Weekly Reporting Banks
1.28
A19
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures
1984
July 4
1 Cash and balances due from depository institutions
2 Total loans, leases and securities, net 1
Securities
3 U.S. Treasury and government agency 2
4 Trading account 2
Investment account, by maturity
5
6
One year or less
Over one through five years
7
8
Over five years
9 Other securities 2
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
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
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
Total assets
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 5
Other liabilities and subordinated note and debentures.
65 Total liabilities
66 Residual (total assets minus total liabilities)6
July 11
July 25
Aug. 1
Aug. 8
Aug. 15
Aug. 22
Aug. 29
23,864
20,219
22,330
20,861
24,644
22,135
22,312
19,834
20,925
168,956^
161,414'
164,266'
163,239'
164,288
159,920
163,676
159,552
160,028
9,419
1,832
6,449
1,138
9,441
1,695
6,599
1,147
9,440
1,650
6,642
1,148
9,405
1,658
6,603
1,144
9,348
1,687
6,516
1,144
9,186
1,647
6,397
1,143
9,520
1,670
6,698
1,152
9,639
1,734
6,749
1,157
9,538
1,733
6,648
1,157
9,052
8,384
1,055
7,328
668
9,083
8,406
1,072
7,333
677
9,155
8,479
1,085
7,394
676
9,162
8,486
1,095
7,391
676
9,138
8,513
1,178
7,335
624
9,212
8,581
1,193
7,388
631
9,260
8,630
1,258
7,373
629
9,380
8,710
1,342
7,368
670
9,429
8,762
1,366
7,396
667
17,657'
4,455'
2,353'
137,319
135,295
64,843'
756
64,087'
62,893'
1,194
22,014
14,699'
13,398
2,379
2,318
8,702
7,160
472
7,712
594
4,402
2,024
1,511
2,979
132,828
68,199'
13,299'
6,858'
3,765'
2,675'
134,104
132,080
64,294'
780
63,514'
62,363'
1,151
22,224
14,732'
12,700
1,860
2,288
8,552
5,590
480
7,856
426
3,777
2,023
1,536
2,977
129,591
67,784'
16,474'
9,855'
3,924'
2,696'
133,705
131,670
64,542'
736
63,806^
62,707'
1,099
22,294
14,807'
12,642
1,891
2,228
8,522
5,041
470
7,800
381
3,693
2,036
1,531
2,977
129,197
64,003'
13,525'
7,58C
3,387'
2,558'
135,665'
133,621'
64,457'
782
63,674'
62,611'
1,064
21,997
14,853'
12,846'
1,754'
2,558'
8,534
5,965
460
7,848
384'
4,811'
2,044
1,526
2,992
131,146'
63,191'
14,636
8,795
3,331
2,510
135,711
133,645
64,730
960
63,770
62,681
1,089
22,258
14,756
12,870
1,751
2,640
8,479
6,308
359
8,070
347
3,947
2,066
1,519
3,025
131,166
67,025
11,994
6,524
2,952
2,518
134,097
132,024
64,686
740
63,946
62,913
1,032
22,351
14,804
12,450
1,648
2,384
8,418
5,184
359
7,957
412
3,821
2,072
1,506
3,063
129,528
70,527
14,192
8,345
3,147
2,700
135,288
133,121
64,230
662
63,568
62,544
1,023
22,455
14,826
12,240
1,410
2,264
8,565
6,623
317
8,027
496
3,908
2,166
1,509
3,076
130,703
73,370
11,640
6,440
2,652
2,548
133,469
131,292
64,082
909
63,174
62,184
990
22,430
14,910
12,338
1,556
2,372
8,410
5,338
311
8,180
327
3,375
2,177
1,497
3,079
128,893
67,380
12,683
7,372
2,585
2,725
132,980
130,802
63,745
700
63,045
62,050
995
22,521
15,027
11,981
1,506
2,035
8,440
5,056
315
8,160
443
3,556
2,178
1,501
3,102
128,378
67,315
261,02<K
249,417'
250,599'
247,291'
255,957
252,582
259,358
246,766
248,268
52,565
35,372
863
249
6,470
5,116
932
3,563
43,798
29,980
704
504
4,406
4,591
704
2,909
46,083
31,223
896
688
4,690
4,526
664
3,394
46,255'
31,001'
610
392
4,358'
4,92 (V
814'
4,160
49,402
33,448
712
168
5,932
4,803
519
3,820
46,121
30,172
603
423
4,228
4,574
617
5,503
50,650
33,283
686
639
5,6%
4,855
824
4,667
42,622
28,939
534
403
4,742
4,226
790
2,988
45,175
30,323
512
460
4,400
4,782
616
4,082
3,812
78,750
71,248
2,892
33
2,951
1,627
59,860'
3,716
78,278
70,723
2,919
29
2,989
1,618
60,113'
3,540
79,536
71,850
3,178
35
2,840
1,633
52,609'
3,453
80,576
72,039
4,026
35
2,603
1,873
59,040
2,148
50,461'
43,237'
497
59,186
39,822
3,552
81,758
73,284
3,848
35
2,679
1,912
61,123
4,013
466
56,644
39,925
3,491
80,729
72,190
3,959
35
2,662
1,882
58,338
1,966
58,146'
41,259'
3,615
80,171
72,226
3,255
33
2,908
1,750
59,062
1,230
2,575
55,258
41,309
3,593
80,912
72,534
3,581
33
2,801
1,964
59,683
511
59,35(K
43,835'
3,707
78,531
71,066
3,028
29
2,796
1,611
57,012'
400
1,659
54,953'
43,125'
1,239
57,100
39,210
1,024
58,017
37,711
238,823'
227,164'
228,457'
225,177'
233,560
230,130
237,009
224,390
225,955
22,197
22,253
22,142
22,115'
22,397
22,452
22,350
22,376
22,312
IO.SSC
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.
July 18
6. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
NOTE. These data also appear in the Board's H.4.2 (504) release. For address,
see inside front cover,
A20
1.29
DomesticNonfinancialStatistics • September 1984
LARGE WEEKLY REPORTING COMMERCIAL BANKS
Millions of dollars, Wednesday figures
Balance Sheet Memoranda
1984
Account
July 4R
July IK
July 18'
July 25'
Aug. 1
Aug. 8
Aug. 15
Aug. 22
Aug. 2 9
BANKS WITH ASSETS OF $ 1 . 4 BILLION OR MORE
1
2
3
4
5
6
7
Total loans and leases (gross) and investments adjusted 1
Total loans and leases (gross) adjusted 1
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates—total 2
Commercial and industrial
Other
Nontransaction savings deposits (including M M D A s ) . . .
741,825
619,560
155,803
2,753
1,957
796
155,264
737,988
614,466
156,199
2,794
1,986
809
154,489
735,645
614,436
156,193
2,918
2,103
816
154,056
738,223
616,292
157,284
2,895
2,083
811
153,110
741,604
618,261
156,664
2,877
2,057
821
152,932
739,918
615,316
157,433
2,905
2,086
819
152,438
746,422
620,426
158,146
2,912
2,091
821
152,122
742,214
615,666
157,851
2,945
2,102
842
151,434
741,816
615,754
158,036
3,015
2,150
864
151,158
160,218
141,747
34,845
157,207
138,683
34,625
157,028
138,434
34,675
158,424
139,856
35,288
158,286
139,800
35,282
156,317
137,918
35,668
158,505
139,725
36,043
156,132
137,112
35,146
155,752
136,785
35,094
BANKS IN N E W YORK CITY
8 Total loans and leases (gross) and investments adjusted 1 ' 3 . .
9 Total loans and leases (gross) adjusted 1
10 Time deposits in amounts of $100,000 or more
1. Exclusive of loans and federal funds transactions with domestic commercial
banks.
2. Loans sold are those sold outright to a bank's own foreign branches,
1.30
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
3. Excludes trading account securities.
LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS WITH ASSETS OF
$750 MILLION OR MORE ON JUNE 30, 1980 Assets and Liabilities
Millions of dollars, Wednesday figures
1984
Account
July 4
38
39
40
41
Cash and due from depository institutions.
Total loans and securities
U.S. Treasury and govt, agency securities
Other securities
Federal funds sold1
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....
Credit balances
Demand deposits
Individuals, partnerships, and
corporations
Other
Time and savings deposits
Individuals, partnerships, and
corporations
Other
Borrowings from other than directly
related institutions
Federal funds purchased 2
From commercial banks in the
United States
From others
Other liabilities for borrowed money
To commercial banks in the
United States
To others
Other liabilities to nonrelated parties
Net due to related institutions
Total liabilities
42
43
Total loans (gross) and securities adjusted 3
Total loans (gross) adjusted 3
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
July 11
7,229
47,370'
4,296
822
4,981
4,786
195
37,271'
20,511'
6,720
45,879'
4,295
839
3,555
3,427
128
July 18'
July 25
Aug. 1
Aug. 8
Aug. 15
Aug. 22
Aug. 2 9
20,719'
6,631
46,625
4,385
964
4,665
4,480
185
36,610
20,653
6,840
44,714
4,334
984
2,792
2,736
56
36,603
20,383
7,024
44,305
4,194
1,003
2,775
2,695
80
36,333
20,163
6,415
44,844
4,226
1,002
3,173
3,115
58
36,443
20,046
6,525
46,698
4,307
1,016
4,109
3,902
207
37,265
20,226
6,165
46,541
4,300
1,050
3,985
3,840
145
37,206
20,350
6,327
48,320
4,292
1,091
5,680
5,457
223
37,258
20,702
3,452'
17,058'
15,169'
1,889
13,367
11,178
1,431
758
794
643
1,956
15,744'
11,316
81,659
3,543'
17,176'
15,35C
1,826
13,060
10,914
1,542
604
789
710
1,912
15,958'
11,796
80,354
3,467
17,186
15,276
1,910
12,772
10,627
1,501
643
792
479
1,915
16,304
11,578
81,138
3,333
17,050
15,187
1,862
12,919
10,790
1,505
624
827
631
1,843
16.17C
11,954'
79,678'
3,313
16,850
15,097
1,753
12,689
10,289
1,622
778
794
840
1,848
15,956
11,179
78,464
3,255
16,791
15,019
1,772
13,078
11,010
1,528
541
785
712
1,821
16,018
11,249
78,525
3,175
17,051
15,294
1,757
13,537
11,215
1,607
714
755
874
1,872
16,346
10,863
80,432
3,271
17,079
15,317
1,762
13,670
11,361
1,603
707
752
589
1,845
16,892
10,518
80,116
3,417
17,285
15,404
1,881
13,265
11,066
1,494
705
747
655
1,889
17,133
10,298
82,079
22,474
207
1,73c
22,175
115
1,699'
22,207
170
1,740
22,300
203
1,759
22,259
197
1,7%
21,542
118
1,731
21,694
148
2,009
21,108
113
1,576
21,182
132
1,718
926
804'
20,538'
842'
857
20,36C
810
930
20,297
792
966
20,338
854
942
20,266
829
902
19,693
872
1,136
19,537
810
766
19,419
812
906
19,332
17,052
3,486'
16,914'
3,447
16,957
3,340
16,966
3,372
16,760
3,506
16,336
3,357
16,121
3,416
16,012
3,406
15,895
3,437
33,645'
9,310
34,081'
9,734
34,617
10,387
34,352
9,985
33,403
9,562
33,640
9,551
34,329
10,099
33,666
9,342
34,957
10,371
6,629
2,681
24,335'
7,101
2,634
24,347'
7,398
2,990
24,230
6,951
3,034
24,367
6,814
2,748
2 3 , 840
6,695
2,856
24,088
7,394
2,706
24,230
6,344
2,998
24,324
7,334
3,036
24,586
20,445
3,890
16,418'
9,121
81,659
20,480
3,866
16,611'
7,487
80,354
20,287
3,943
16,767
7,547
81,138
20,228
4,139
16,765'
6,260
79,678'
19,596
4,244
16,820
5,982
78,464
19,742
4,346
16,735
6,610
78,525
19,863
4,366
17,051
7,358
80,432
20,063
4,261
17,522
7,820
80,116
20,282
4,304
18,024
7,916
82,079
31,406'
26,288'
31,538'
26,404'
31,518
26,168
31,188
25,870
31,321
26,124
30,719
25,491
31,581
26,257
31,340
25,990
31,797
26,415
37,19c
MEMO
1. Includes securities purchased under agreements to resell.
2. Includes securities sold under agreements to repurchase.
3. Exclusive of loans to and federal funds sold to commercial banks in the
United States.
NOTE. Data from tables 1.29 and 1.30 also appear in the Board's H.4.2 (504)
release. For address, see inside front cover.
IPC Demand Deposits
1.31
A21
GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations'
Billions of dollars, estimated daily-average balances
Commercial banks
Type of holder
1978
Dec.
19792
Dec.
1980
Dec.
1982
1981
Dec.
Dec.
1 All holders—Individuals, partnerships, and
corporations
2
3
4
5
6
Financial business
Nonfinancial business
Consumer
Foreign
Other
1984
1983
Mar.
Sept.
June
Dec.
Mar.
290.0
302.3
315.5
288.9
291.8
272.0
281.9
280.3
293.5
279.3
27.0
146.8
98.2
2.8
15.1
27.1
157.7
99.2
3.1
15.1
29.8
162.8
102.4
3.3
17.2
28.0
154.8
86.6
2.9
16.7
35.4
150.5
85.9
3.0
17.0
32.7
139.9
79.4
3.1
16.9
34.6
146.9
80.3
3.C
17.2
32.1
150.2
78.0
2.9
17.1
32.8
161.1
78.5
3.3
17.8
31.7
150.3
78.1
3.3
15.9
Weekly reporting banks
1978
Dec.
19793
Dec.
1980
Dec.
1981
Dec.
1982
Dec.
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
Mar.
June
Sept.
Dec. 4
Mar.
127.6
139.3
147.4
137.5
144.2
133.0
139.6
136.3
146.2
139.2
18.2
67.2
32.8
2.5
6.8
20.1
74.1
34.3
3.0
7.8
21.8
78.3
35.6
3.1
8.6
21.0
75.2
30.4
2.8
8.0
26.7
74.3
31.9
2.9
8.4
24.3
68.9
28.7
3.0
8.1
26.2
72.S
28.5
2.8
9.3
23.6
72.9
28.1
2.8
8.9
24.2
79.8
29.7
3.1
9.3
23.5
76.4
28.4
3.2
7.7
1. Figures include cash items in process of collection. Estimates of gross
deposits are based on reports supplied by a sample of commercial banks. Types of
depositors in each category are described in the June 1971 BULLETIN, p. 466.
2. Beginning with the March 1979 survey, the demand deposit ownership
survey sample was reduced to 232 banks from 349 banks, and the estimation
procedure was modified slightly. To aid in comparing estimates based on the old
and new reporting sample, the following estimates in billions of dollars for
December 1978 have been constructed using the new smaller sample; financial
business, 27.0; nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and
other, 15.1.
1984
1983
3. After the end of 1978 the large weekly reporting bank panel was changed to
170 large commercial banks, each of which had total assets in domestic offices
exceeding $750 million as of Dec. 31, 1977. Beginning in March 1979, demand
deposit ownership estimates for these large banks are constructed quarterly on the
basis of 97 sample banks and are not comparable with earlier data. The following
estimates in billions of dollars for December 1978 have been constructed for the
new large-bank panel; financial business, 18.2; nonfinancial business, 67.2;
consumer, 32.8; foreign, 2.5; other, 6.8.
4. In January 1984 the weekly reporting panel was revised; it now includes 168
banks. Beginning with March 1984, estimates are constructed on the basis of 92
sample banks and are not comparable with earlier data. Estimates in billions of
dollars for December 1983 based on the newly weekly reporting panel are:
financial business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1;
other, 9.5.
A22
1.32
DomesticNonfinancialStatistics • September 1984
COMMERCIAL PAPER A N D BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
19843
1979'
Dec.
Instrument
1980
Dec.
1982
Dec. 2
1981
Dec.
1983
Dec.
Feb.
Mar.
Apr.
May
June
July
Commercial paper (seasonally adjusted unless noted otherwise)
1 AU issuers
2
3
4
5
6
112,803
Financial companies 4
Dealer-placed paper5
Total
Bank-related (not seasonally
adjusted)
Directly placed paper6
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies 7
124,374
165,829
166,670
185,852
191,004
200,517
209,565
213,582
217,188''
220,716
17,359
19,599
30,333
34,634
41,688
44,749
46,573
49,864
51,926
52,356
52,585
2,784
3,561
6,045
2,516
2,441
1,765
1,767
1,865
1,6%
l,944 r
1,799
64,757
67,854
81,660
84,130
96,548
102,606
107,421
109,376
110,791
109,413
109,292
17,598
30,687
22,382
36,921
26,914
53,836
32,034
47,906
35,566
47,616
36,958
43,649
39,617
46,523
41,881
50,325
46,338
50,865
43,960
55,419^
45,090
58,839
Bankers dollar acceptances (not seasonally adjusted)
45,321
11
12
13
79,543
78,309
74,367
73,221
78,457
79,530
82,067
80,957
10,564
8,963
1,601
10,857
9,743
1,115
10,910
9,471
1,439
9,355
8,125
1,230
9,237
7,897
1,340
8,734
7,040
1,694
11,160
9,029
2,131
9,927
8,422
1,504
10,877
9,354
1,523
10,708
8,854
1,853
776
1,791
41,614
195
1,442
56,731
1,480
949
66,204
418
729
68,225
0
777
64,353
0
896
63,592
305'
834
66,468
0
679
68,925
0
697
70,493
0
611
69,639
10,270
9,640
25,411
Basis
14 Imports into United States
15 Exports from United States
16 All other
8
9
10
69,226
704
1,382
33,370
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
54,744
9,865
8,327
1,538
7 Total
11,776
12,712
30,257
14,765
15,400
39,060
17,683
16,328
45,531
15,649
16,880
45,781
15,495
15,818
43,055
15,107
15,572
42,542
16,579
16,283
45,545
16,687
15,938
46,906
17,301
16,421
48,345
17,947
15,485
47,525
1. A change in reporting instructions results in offsetting shifts in the dealerplaced and directly placed financial company paper in October 1979.
2. 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.
3. Correction of a previous misclassification of paper by a reporter has created
a break in the series beginning January 1984. The correction shifts some paper
from nonfinancial companies to dealer-placed financial paper.
1.33
4. 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.
5. Includes all financial company paper sold by dealers in the open market.
6. As reported by financial companies that place their paper directly with
investors.
7. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum
Rate
Effective Date
Rate
16.50
17.00
16.50
16.00
15.50
15.00
14.50
14.00
13.50
7
14
Nov 7?
13.00
12.00
11.50
1983--Jan. 11
Feb. ?8
Aug. 8
11.00
1984--Mar. 19
Apr. 5
May 8
June 25
11.50
12.00
12.50
13.00
Average
rate
10.50
11.00
NOTE. These data also appear in the Board's H.15 (519) release. For address,
see inside front cover.
1982—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept
Oct.
Nov.
Dec.
15.75
16.56
16.50
16.50
16.50
16.50
1983- -Jan..
Feb.
Mar.
Apr.
16.00
15.75
1982--Oct.
Month
11.16
16.26
14.39
13.50
12.52
11.85
11.50
10.98
10.50
10.50
Month
1983—May.
June.
July
Aug.
Sept.
Oct.
Nov.
Dec.
1984—Jan.
Feb..
Mar.
Apr.
May
June.
July
Aug.
Business Lending
A23
1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 7-11, 1984
Size of loan (in thousands of dollars)
All
sizes
1-24
1,000
and over
500-999
100-499
25-49
SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS
1
2
3
4
5
6
7
8
9
10
11
12
13
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
With fixed rates
With floating rates
Weighted-average interest rate (percent per annum) .
Interquartile range 1
With fixed rates
With floating rates
Percentage of amount of loans
With floating rate
Made under commitment
With no stated maturity
With one-day maturity
38,733,851
194,776
1.4
1.0
2.1
12.45
11.82-12.75
12.23
12.80
1,071,948
135,176
4.5
3.8
6.0
14.93
13.95-15.87
14.89
14.99
786,804
23,944
4.6
4.0
5.4
14.46
13.70-15.39
14.16
14.80
947,786
14,370
5.0
3.0
7.0
14.41
13.80-14.94
14.28
14.50
2,643,636
15,327
5.4
4.1
6.3
13.86
13.24-14.37
13.76
13.90
34.7
32.3
9.1
46.2
40.1
57.8
51.7
10.2
18.6
39.2
69.7
9.9
39.0
.1
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
With fixed rates
With floating rates
Weighted-average interest rate (percent per annum)
Interquartile range 1
With fixed rates
With floating rates
Percentage of amount of loans
23 With floating rate
24 Made under commitment
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
With fixed rates
With floating rates
Weighted-average interest rate (percent per annum)
Interquartile range 1
With fixed rates
With floating rates
34
35
36
37
38
Percentage of amount of loans
With floating rate
Secured by real estate
Made under commitment
With no stated maturity
With one-day maturity
Type of construction
39 1- to 4-family
40 Multifamily
41 Nonresidential
LOANS TO FARMERS
42
43
44
45
46
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per annum)
Interquartile range 1
47
48
49
50
51
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
1.1
.8
2.1
.7
67.4
54.8
24.7
.3
.1
13.61
12.12
11.75-12.36
11.99
12.36
68.8
70.6
35.4
3.4
35.4
73.4
7.7
46.7
12.86
683,061
33,322
42.8
38.2
46.2
15.00
14.37-15.87
14.98
15.02
348,909
1,689
46.1
57.2
42.5
13.91
13.10-14.45
14.03
13.87
198,394
296
45.2
54.6
43.7
13.50
12.68-14.09
12.75
13.62
2,899,152
600
49.4
44.6
53.1
12.56
11.75-13.24
11.94
13.04
59.9
75.4
58.4
37.0
75.7
57.1
86.7
74.5
56.5
86.7
11.8
14.71
14.37-15.57
14.80
14.51
17.1
98.3
18.0
33.6
.1
31.7
97.8
25.1
5.8
40.8
78.7
37.9
3.4
.6
.0
.0
91.1
79.3
5.9
14.8
34.0
2.8
63.1
7.2
4.1
88.6
7.9
8.5
13.76
13.22-14.50
13.53
14.07
118,448
3,012
9.3
9.3
9.1
14.78
14.75-15.03
14.87
14.33
43.2
72.6
43.8
9.5
.0
35.3
95.4
50.0
3.7
.0
28.8
3.6
67.6
53.5
3.0
43.5
8.2
All sizes
163,406
2,292
7.7
6.1
2.2
6.8
25-49
10-24
1-9
1,183,865
984
9.7
890,297
4,563
5.9
4.2
8.5
13.92
13.24-14.50
14.00
13.80
211,528
22,087
10.4
12.7
5.8
15.04
14.37-15.79
15.05
15.03
2,567,543
32,938
500 and over
50-99
25-49
1-24
1,502,201
77,344
8.3
14.25
13.55-14.95
199,153
53,658
6.6
14.64
13.96-15.02
176,270
11,974
7.1
14.35
13.67-15.02
14.51
13.86
14.29
15.04
13.93
14.79
13.97
14.56
15.88
14.59
14.07
14.59
14.41
14.55
14.02
1. Interest rate range that covers the middle 50 percent of the total dollar
amount of loans made.
2. Fewer than 10 sample loans.
4.6
13.37
12.68-13.88
4,129,515
35,908
47.9
44.3
50.2
13.12
12.00-13.92
12.58
13.49
CONSTRUCTION AND L A N D DEVELOPMENT LOANS
25
26
27
28
29
30
31
32
33
32,295,962
4,456
1-99
LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS
14
15
16
17
18
19
20
21
22
987,715
1,503
3.5
11.0
8.6
13.19
12.02-14.09
12.28
14.06
50.7
57.8
52.2
13.1
100-249
50-99
250 and over
14.41
13.80-14.95
173,959
2,720
8.4
14.24
13.59-15.03
339,127
2,312
11.3
14.51
14.09-15.02
418,052
574
7.5
13.75
12.55-14.49
14.34
14.63
14.54
14.68
13.91
14.63
(2)
14.21
(2)
14.10
14.84
(2)
14.44
(2)
14.14
13.74
13.33
13.89
(2)
13.63
195,641
6,105
8.0
NOTE. For more detail, see the Board's E.2 (111) statistical release,
A24
1.35
DomesticNonfinancialStatistics • September 1984
INTEREST RATES Money and Capital Markets
Averages, percent per annum; weekly and monthlyfiguresare averages of business day data unless otherwise noted.
1984
Instrument
1981
1982
1984, week ending
1983
May
June
July
Aug.
Aug. 3
Aug. 10
Aug. 17
Aug. 24
Aug. 31
MONEY MARKET RATES
1 Federal funds 1 ' 2
2 Discount window borrowing 1 - 2 ' 3
Commercial paper 4 ' 5
3
1-month
4
3-month
5 6-month
Finance paper, directly placed 4 ' 5
6
1-month
7 3-month
8 6-month
Bankers acceptances 5 ' 6
9 3-month
10 6-month
Certificates of deposit, secondary market 7
11
1-month
12 3-month
13 6-month
14 Eurodollar deposits, 3-month 8
U.S. Treasury bills'
Secondary market 9
15
3-month
16
6-month
17
1-year
Auction average 10
18
3-month
19
6-month
20
16.38
13.42
12.26
11.02
9.09
8.50
10.32
9.00
11.06
9.00
11.23
9.00
11.64
9.00
11.53
9.00
11.59
9.00
11.63
9.00
11.77
9.00
11.50
9.00
15.69
15.32
14.76
11.83
11.89
11.89
8.87
8.88
8.89
10.38
10.65
10.87
10.82
10.98
11.23
11.06
11.19
11.34
11.19
11.18
11.16
11.02
11.12
11.19
11.11
11.14
11.16
11.18
11.16
11.13
11.28
11.22
11.16
11.28
11.23
11.17
15.30
14.08
13.73
11.64
11.23
11.20
8.80
8.70
8.69
10.26
10.16
10.03
10.76
10.38
10.25
10.99
10.54
10.42
11.16
10.61
10.52
10.83
10.58
10.45
11.13
10.55
10.45
11.18
10.65
10.55
11.23
10.58
10.54
11.26
10.63
10.57
15.32
14.66
11.89
11.83
8.90
8.91
10.84
11.06
11.04
11.30
11.30
11.44
11.23
11.13
11.14
11.17
11.21
11.12
11.22
11.10
11.24
11.11
11.29
11.17
15.91
15.91
15.77
16.79
12.04
12.27
12.57
13.12
8.96
9.07
9.27
9.56
10.62
11.11
11.64
11.53
11.02
11.34
11.96
11.68
11.28
11.56
12.08
12.02
11.32
11.47
11.71
11.81
11.21
11.39
11.77
11.73
11.29
11.43
11.70
10.47
11.32
11.46
11.68
11.80
11.37
11.50
11.69
11.83
11.37
11.52
11.75
11.86
14.03
13.80
13.14
10.61
11.07
11.07
8.61
8.73
8.80
9.83
10.31
10.57
9.87
10.51
10.93
10.12
10.53
10.89
10.47
10.61
10.71
10.42
10.63
10.73
10.48
10.59
10.69
10.31
10.52
10.64
10.44
10.57
10.68
10.65
10.75
10.84
14.029
13.776
13.159
10.686
11.084
11.099
8.63
8.75
8.86
9.90
10.31
10.64
9.94
10.55
10.92
10.13
10.58
10.99
10.49
10.65
10.79
10.40
10.64
10.55
10.68
10.79
10.49
10.63
10.40
10.59
10.60
10.70
14.78
14.56
12.27
12.80
9.57
10.21
11.66
12.47
12.08
12.91
12.03
12.88
11.82
12.43
11.80
12.38
12.92
13.01
13.06
13.00
12.92
12.76
10.45
10.80
11.02
11.10
11.34
11.18
12.75
13.17
13.34
13.41
13.43
13.43
13.18
13.48
13.56
13.56
13.54
13.44
13.08
13.28
13.35
13.36
13.36
13.21
12.50
12.69
12.75
12.72
12.71
12.54
12.44
12.63
12.69
12.67
12.72
12.58
11.73
12.40
12.40
12.45
12.67
12.74
12.71
12.75
12.51
11.80
12.43
14.44
14.24
14.06
13.91
13.72
13.44
11.84
12.50
12.75
12.63
12.77
12.83
12.82
12.87
12.79
12.46
12.66
12.70
12.66
12.60
12.42
11.97
12.55
12 45
12.60
12.79
12.86
12.82
12.75
12.56
12.87
12.23
10.84
12.89
13.00
12.82
12.23
12.36
12.23
12.25
12.15
12.29
10.43
11.76
11.33
10.88
12.48
11.66
8.80
10.17
9.51
9.98
10.55
10.49
10.05
10.68
10.67
10.10
10.61
10.42
9.58
10.30
9.99
9.75
10.45
9.92
9.55
10.30
9.81
9.50
10.25
10.02
9.50
10.15
10.02
9.60
10.35
10.17
15.06
14.17
14.75
15.29
16.04
14.94
13.79
14.41
15.43
16.11
12.78
12.04
12.42
13.10
13.55
14.13
13.28
14.10
14.37
14.74
14.40
13.55
14.33
14.66
15.05
14.32
13.44
14.12
14.57
15.15
13.78
12.87
13.47
14.13
14.63
13.96
13.05
13.66
14.25
14.89
13.76
12.84
13.47
14.07
14.65
13.77
12.86
13.44
14.14
14.63
13.73
12.85
13.41
14.09
14.55
13.77
12.88
13.47
14.13
14.58
16.63
15.49
12.73
14.79
15.00
14.93
14.12
14.10
14.08
14.16
14.10
14.15
12.36
5.20
12.53
5.81
11.02
4.40
11.72
4.72
12.04
4.86
12.13
4.93
11.77
4.62
12.08
4.84
11.73
4.64
11.65
4.61
11.66
4.50
11.71
4.50
CAPITAL MARKET RATES
21
22
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
U.S. Treasury notes and bonds"
Constant maturities 12
1-year
2-year
2-Vi-year13
3-year
5-year
7-year
10-year
20-year
30-year
Composite 14
Over 10 years (long-term)
State and local notes and bonds
Moody's series 15
Aaa
Baa
Bond Buyer series 16
Corporate bonds
Seasoned issues 17
All industries
Aaa
Aa
A
Baa
A-rated, recently-offered utility
bonds 18
MEMO: Dividend/price ratio 19
40
Preferred stocks
41 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 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. Each biweekly figure is the average of five business days ending on the
Monday following the date indicated. Until Mar. 31, 1983, the biweekly rate
determined the maximum interest rate payable in the following iwo-week period
on 2-1/i-year small saver certificates. (See table 1.16.)
14. Averages (to maturity or call) for all outstanding bonds neither due nor
callable in less than 10 years, including several very low yielding "flower" bonds.
15. General obligations based on Thursday figures; Moody's Investors Service.
16. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
17. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
18. 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.
19. 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.
Securities Markets
1.36
STOCK MARKET
A25
Selected Statistics
1984
1983
Indicator
1982
1981
1983
Jan.
Dec.
Mar.
Feb.
Apr.
May
June
Aug.
July
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2 Industrial
3 Transportation
4 Utility
5 Finance
6 Standard & Poor's Corporation (1941-43 = 10)' . . .
7 American Stock Exchange 2
(Aug. 31, 1973 = 100)
74.02
85.44
72.61
38.90
73.52
128.05
68.93
78.18
60.41
39.75
71.99
119.71
92.63
107.45
89.36
47.00
95.34
160.41
94.92 96.16
110.60 112.16
98.79 97.98
47.00 47.43
94.25 95.79
164.36 166.39
90.60 90.66
105.44 105.92
86.33 86.10
45.67 44.83
89.95 89.50
157.70 157.44
90.67
106.56
83.61
43.86
88.22
157.60
90.07
105.94
81.62
44.22
85.06
156.55
88.28
104.04
79.29
43.65
80.75
153.12
87.08
102.29
76.72
44.17
79.03
151.08
94.49
111.20
86.86
46.69
87.92
164.42
171.79
141.31
216.48
221.31 224.83
207.95 210.09
207.66
206.39
201.24
192.82
207.90
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
46,967
5,346
64,617
5,283
85,418
8,215
88,041 105,518
6,939 7,167
96,641 84,328
6,431 5,382
85,874
5,863
88,170
5,935
85,920
5,071
79,156
5,141
109,892
7,477
Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers
3
14,411
23,000
23,000 23,132
22,557 22,668
22,830
12,980
344
22,720
279
22,720 22,870
279
261
22,330 22,460
208
226
t
3,515
7,150
Free credit balances at brokers4
14 Margin-account
15 Cash-account
13,325
14,150
259
2
11 Margin stock
12 Convertible bonds
13 Subscription issues
5,735
8,390
6,620
8,430
1
1
1
6,620
8,430
1
6,510
8,230
1
6,420
8,420
6,520
8,265
22,360
•
23,450
n.a.
n.a.
n.a.
6,450
7,910
6,685
8,115
6,430
8,304
t
Margin-account debt at brokers (percentage distribution, end of period)
100.0
17
18
19
20
21
22
By equity class (in percent)5
Under 40
40-49
50-59
60-69
70-79
80 or more
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
37.0
24.0
17.0
10.0
6.0
6.0
16 Total
21.0
24.0
24.0
14.0
9.0
8.0
41.0
22.0
16.0
9.0
6.0
6.0
41.0
22.0
16.0
9.0
6.0
6.0
43.0
21.0
15.0
9.0
6.0
6.0
48.0
20.0
13.0
8.0
6.0
5.0
46.0
20.0
14.0
9.0
6.0
5.0
47.0
20.0
13.0
8.0
6.0
6.0
53.0
18.0
12.0
7.0
5.0
5.0
50.0
19.0
12.0
8.0
6.0
5.0
52.0
17.0
12.0
8.0
5.0
6.0
n.a.
1
1
y
Special miscellaneous-account balances at brokers (end of period)
23 Total balances (millions of dollars)
6
Distribution by equity status (percent)
24 Net credit status
Debt status, equity of
25 60 percent or more
26 Less than 60 percent
58,329 62,670
25,870
35,598
58,329
58.0
62.0
63.0
63.0
61.0
31.0
29.0
9.0
28.0
9.0
28.0
9.0
29.0
10.0
11.0
63,410 65,860
66,340
70,110
69,410
70,588
59.0
61.0
60.0
60.0
56.0
57.0
29.0
12.0
28.0
29.0
27.0
13.0
30.0
14.0
30.0
13.0
11.0
11.0
f
1
n.a.
1
1
t
Margin requirements (percent of market value and effective date)7
Mar. 11, 1968
27 Margin stocks
28 Convertible bonds
29 Short sales
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Beginning July 5, 1983, the American Stock Exchange rebased its index
effectively cutting previous readings in half.
3. Beginning July 1983, under the revised Regulation T, margin credit at
broker-dealers includes credit extended against stocks, convertible bonds, stocks
acquired through exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds,
and subscription issues was discontinued in April 1984, and margin credit at
broker-dealers became the total that is distributed by equity class and shown on
lines 17-22.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
5. Each customer's equity in his collateral (market value of collateral less net
debit balance) is expressed as a percentage of current collateral values.
6. Balances that may be used by customers as the margin deposit required for
additional purchases. Balances may arise as transfers based on loan values of
other collateral in the customer's margin account or deposits of cash (usually sales
proceeds) occur.
7. Regulations G, T, and U of the Federal Reserve Board of Governors,
prescribed in accordance with the Securities Exchange Act of 1934, limit the
amount of credit to purchase and carry margin stocks that may be extended on
securities as collateral by prescribing a maximum loan value, which is a specified
percentage of the market value of the collateral at the time the credit is extended.
Margin requirements are the difference between the market value (100 percent)
and the maximum loan value. The term "margin stocks" is defined in the
corresponding regulation.
A26
1.37
DomesticNonfinancialStatistics • September 1984
SELECTED FINANCIAL INSTITUTIONS
Millions of dollars, end of period
Selected Assets and Liabilities
1984
1983
Account
1981
Sept.
Oct.
Nov.
Dec.
Feb.
Jan.
Mar.
Apr.
May
June
July'
796,095
806,482
823,737
838,825
849,761
Savings and loan associations
1
2
3
4
Assets
Mortgages
Cash and investment securities 1
Other
5 Liabilities and net worth
6
7
8
9
10
11
Savings capital
Borrowed money
FHLBB
Other
Loans in process 2
Other
664,167
707,646
748,491
756,953
763,365
771,705
772,723
780,107
518,547 483,614 482,305 485,366 489,720 493,432 494,682 497,987 502,143
63,123 85,438 100,243 101,553 101,553 103,395 101,883 103,917 108,565
82,497 138,594 165,943 170,034 172,259 174,878 176,158 178,203 185,387
664,167
707,646
748,491
756,953
763,365
771,705
525,061 567,961 618,002 622,577 625,013 634,076
87,367 89,235
91,443
85,976
88,782 97,850
52,179
52,678 51,735
52,626
62,794 63,861
38,817
33,797
34,689 37,500
25,988 33,989
19,728 21,117
9,934
18,812
19,209
6,385
15,602
19,179
15,275
15,544
15,496
17,458
772,723
780,107
796,095
509,283 518,214 526,732 534,704
105,950 109,102 108,809 107,717
191,249 196,421 203,284 207,340
806,482
823,737
838,825
849,761
639,694 644,588 656,252 660,262 670,259 681,532 687,930
86,526 93,321
97,468 102,281 107,554 109,401
86,322
53,485
56,558
57,245
51,951
50,465
50,663
50,880
50,9%
52,156
36,061
42,658 45,517 48,7%
35,442
25,680
26,140
21,939 22,929
23,898 24,717
21,498
19,207
16,957
19,509
16,904
17,520
14,938
15,777
12 Net worth 3
28,395
26,233
29,017
29,551
29,938
30,911
30,930
31,473
31,584
31,848
31,990
32,782
32,921
13 MEMO: Mortgage loan commitments
outstanding 4
15,225
18,054
32,483
32,798
34,780
32,9%
33,504
36,150
39,813
41,672
45,207
44,811
44,116
Mutual savings banks 5
14 Assets
15
16
17
18
19
20
21
Loans
Mortgage
Other
Securities
U.S. government 6
State and local government
Corporate and other 7
Cash
Other assets
22 Liabilities
24
25
Regular*
Ordinary savings
27 Other
28 Other liabilities
29 General reserve accounts
30 MEMO: Mortgage loan commitments
outstanding 9
175,728
174,197
186,041
187,385
189,149
193,535
194,217
195,168
197,178
198,000
200,087
198,744
99,997
14,753
94,091
16,957
94,831
17,830
94,863
19,589
95,600
19,675
97,356
19,129
97,703
20,463
97,895
21,694
98,472
21,971
99,017
22,531
99,881
22,907
99,356
22,972
9,810
2,288
37,791
5,442
5,649
9,743
2,470
36,161
6,919
7,855
14,794
2,244
41,889
5,560
8,893
14,634
2,195
42,092
4,993
9,019
15,092
2,195
42,629
4,983
8,975
15,360
2,177
43,580
6,263
9,670
15,167
2,180
43,542
4,788
10,374
15,667
2,054
43,439
4,580
9,839
15,772
2,067
43,547
5,040
10,309
15,913
2,033
43,122
5,008
10,376
16,404
2,024
43,200
5,031
10,640
15,440
2,037
42,675
5,449
10,815
175,728
174,197
186,041
187,385
189,149
193,535
194,217
195,168
197,178
198,000
200,087
198,744
155,110
153,003
49,425
103,578
2,108
10,632
9,986
155,196
152,777
46,862
96,369
2,419
8,336
9,235
165,887
162,998
39,768
85,603
2,889
9,475
9,879
168,064
165,575
38,485
91,795
2,489
8,779
10,015
169,356
167,006
38,448
93,073
2,350
9,185
10,210
172,665
170,135
38,554
95,129
2,530
10,154
10,368
1,293
1,285
2,023
2,210
2,418
2,387
173,636
171,099
37,992
%,519
2,537
9,917
10,350
174,370
171,957
37,642
96,005
2,413
10,019
10,492
176,044
173,385
37,866
97,339
2,659
10,390
10,373
175,875
173,010
37,329
%,920
2,865
11,211
10,466
176,253
173,310
37,147
97,236
2,943
12,861
10,554
n.a.
n.a.
n.a.
n.a.
n.a.
n a.
174,855
171,742
36,300
97,131
3,113
13,003
10,3%
n.a.
Life insurance companies'
31 Assets
32
33
34
35
Securities
Government
United States 10
State and local
Foreign"
37
38
39
40
41
42
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
525,803
588,163
639,035
643,338
649,081
654,948
658,504
660,901
665,836
671,259
673,518
52,504
52,828 53,422
50,752
51,328 51,762
48,478 48,341
25,209 36,499 46,605
31,706
31,056
31,358
26,293 28,636 29,179 30,130
16,529 24,513 26,054
8,167
9,239
9,426
9,259
9,192
9,925
9,986
9,995
8,664
10,022
10,010
7,151
12,477
12,154
12,206
12,189
12,278
12,123
12,130
12,070
12,414
11,306
9,891
255,769 287,126 318,668 319,644 323,714 322,854 328,075 328,235 331,631 334,634 334,151
208,099 231,406 253,602 255,409 258,757 257,986 263,207 265,798 268,446 271,2% 273,212
64,957 64,868 64,868 62,437 63,185
63,338 60,939
65,066 64,235
47,670 55,720
137,747 141,989 147,025 147,839 148,487 150,999 151,085 151,020 151,445 152,373 152,968
23,034
23,237 23,517
21,864 22,234
22,500 22,591
21,536 21,731
18,278 20,264
54,254
54,365 54,399
53,860 53,917 53,979 54,063 54,089 54,170
48,706 52,961
53,822 55,061
51,341
51,729 52,696 54,046 51,939 53,123 52,968
40,094 48,571
n.a.
n.a.
Credit unions 12
43 Total assets/liabilities and capital
45
State
47
48
Federal
State
51
State (shares and deposits)
60,611
69,585
80,189
80,419
81,094
81,961
82,287
83,779
86,498
87,204
89,378
90,021
91,431
39,181
21,430
45,493
24,092
53,086
27,103
53,297
27,122
53,801
27,293
54,482
27,479
54,770
27,517
55,753
28,026
57,569
28,929
58,127
29,077
59,636
29,742
59,748
30,273
61,163
30,268
42,333
27,096
15,237
54,152
35,250
18,902
43,232
27,948
15,284
62,990
41,352
21,638
47,829
31,212
16,617
73,280
48,709
24,571
48,454
31,691
16,763
73,661
49,044
24,617
49,240
32,304
16,936
74,051
49,400
24,651
50,083
32,930
17,153
74,739
49,889
24,850
50,477
33,270
17,207
75,373
50,438
24,935
51,386
33,878
17,508
76,423
51,218
25,205
52,353
34,510
17,843
79,150
52,905
26,245
53,355
35,286
18,069
80,032
53,587
26,445
54,813
36,274
18,539
81,571
54,632
26,939
56,272
36,872
19,400
82,319
54,780
27,539
58,027
38,490
19,537
83,757
56,278
27,476
Federal Finance
1.37
All
Continued
1983
Account
1981
1984
1982
Sept.
Nov.
Oct.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July?
77,374
45,900
12,762
18,712
78,952
46,791
12,814
19,347
81,310
48,084
13,071
20,155
82,862
49,282
13,057
20,523
FSLIC-insured federal savings banks
52
53
54
55
6,859
3,353
Assets
Mortgages
Cash and investment securities'
Other
57,496
34,814
9,245
13,437
59,422
35,637
9,587
14,198
61,717
37,166
9,653
14,898
64,969
38,698
10,436
15,835
69,835
41,754
11,243
16,838
72,143
43,371
11,662
17,110
75,555
44,708
12,552
18,295
56 Liabilities and net worth
6,859
57,496
59,422
61,717
64,969
69,835
72,143
75,555
77,374
78,952
81,310
82,862
57
58
59
60
61
62
5,877
47,058
6,598
4,192
2,406
1,089
2,751
48,544
6,775
4,323
2,452
1,293
2,810
50,384
6,981
4,381
2,600
1,428
2,924
53,227
7,477
4,640
2,837
1,157
3,108
57,195
8,048
4,751
3,297
1,347
3,245
59,107
8,088
4,884
3,204
1,545
3,403
61,433
9,213
5,232
3,981
1,360
3,549
62,495
9,707
5,491
4,216
1,548
3,624
63,026
10,475
5,900
4,575
1,747
3,704
64,364
11,489
6,538
4,951
1,646
3,811
65,299
11,947
6,784
5,163
1,771
3,845
Savings and capital
Borrowed money
FHLBB
Other
Other
Net worth 3
MEMO
63 Loans in process 2
64 Mortgage loan committments
outstanding 4
1,120
1,181
1,222
1,264
1,387
1,531
1,669
1,716
1,787
1,839
1,856
2,130
2,064
2,230
2,151
2,974
2,704
3,253
3,714
3,763
3,583
3,889
11. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
12. As of June 1982, data include only federal or federally insured state credit
unions serving natural persons.
1. Holdings of stock of the Federal Home Loan Banks are in "other assets."
2. Beginning in 1982, loans in process are classified as contra-assets and are
not included in total liabilities and net worth. Total assets are net of loans in
process.
3. Includes net undistributed income accrued by most associations.
4. Excludes figures for loans in process.
5. The National Council reports data on member mutual savings banks and on
savings banks that have converted to stock institutions, and to federal savings
banks.
6. Beginning April 1979, includes obligations of U.S. government agencies.
Before that date, this item was included in "Corporate and other."
7. Includes securities of foreign governments and international organizations
and, before April 1979, nonguaranteed issues of U.S. government agencies.
8. Excludes checking, club, and school accounts.
9. Commitments outstanding (including loans in process) of banks in New
York State as reported to the Savings Banks Association of the State of New
York.
10. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
1.38
NOTE. Savings and loan associations: Estimates by the FHLBB for all
associations in the United States. Data are based on monthly reports of federally
insured associations and annual reports of other associations. Even when revised,
data for current and preceding year are subject to further revision.
Mutual savings banks: Estimates of National Council of Savings Institutions for
all savings banks in the United States.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for
differences between market and book values are not made on each item separately
but are included, in total, in "other assets."
Credit unions: Estimates by the National Credit Union Administration for a
group of federal and federally insured state credit unions serving natural persons.
Figures are preliminary and revised annually to incorporate recent data.
FEDERAL FISCAL A N D FINANCING OPERATIONS
Millions of dollars
Calendar year
Fiscal
year
1981
Type of account or operation
Fiscal
year
1982
Fiscal
year
1983
1982
HI
U.S. budget
1 Receipts'
2 Outlays'
3 Surplus, or deficit ( - )
4 Trust funds
5
Federal funds 2 - 3
Off-budget entities (surplus, or deficit
6 Federal Financing Bank outlays
7 Other 3 4
1984
1983
H2
HI
May
June
July
599,272
657,204
-57,932
6,817
-64,749
617,766
728,375
-110,609
5,456
-116,065
600,562
795,917
-195,355
23,056
-218,410
322,478
348,678
-26,200
-17,690
-43,889
286,338
390,846
-104,508
-6,576
-97,934
306,331
396,477
-90,146
22,680
-112,822
37,459
71,391
-33,932
3,849
-37,781
69.282
71.283
-2,001
10,425
-12,425
52,017
68,433
16,416
441
-16,857
-20,769
-236
-14,142
-3,190
-10,404
-1,953
-7,942
227
-4,923
-2,267
-5,418
-528
1,171
-181
-1,504
-296
-1,406
-2,363
-78,936
-127,940
-207,711
-33,914
-111,699
-96,094
-35,284
-3,801
-18,128
79,329
134,993
212,425
41,728
119,609
102,538
8,604
5,524
24,540
-1,878
1,485
-11,911
4,858
-9,889
5,176
-408
-7,405
-9,057
1,146
-9,664
3,222
31,023
-4,344
-6,388
4,666
-3,264
-3,148
18,670
3,520
15,150
29,164
10,975
18,189
37,057
16,557
20,500
10,999
4,099
6,900
19,773
5,033
14,740
100,243
19,442
72,037
8,182
4,855
3,327
13,567
4,397
9,170
16,312
3,972
12,340
(-))
U.S. budget plus off-budget, including
Federal Financing Bank
8 Surplus, or deficit ( - )
Source of financing
9
Borrowing from the public
10 Cash and monetary assets (decrease, or
increase ( - ) ) 4
11 Other 5
MEMO
12 Treasury operating balance (level, end of
period)
13 Federal Reserve Banks
14 Tax and loan accounts
1. Effective Feb. 8, 1982, supplemental medical insurance premiums and
voluntary hospital insurance premiums, previously included in other insurance
receipts, have been reclassified as offsetting receipts in the health function.
2. Half-year figures are calculated as a residual (total surplus/deficit less trust
fund surplus/deficit).
3. Other off-budget includes Postal Service Fund; Rural Electrification and
Telephone Revolving Fund; Rural Telephone Bank; and petroleum acquisition
and transportation and strategic petroleum reserve effective November 1981.
4. Includes U.S. Treasury operating cash accounts; SDRs; gold tranche
drawing rights; loans to International Monetary Fund; and other cash and
formonetary assets.
FRASER
Digitized
5. Includes accrued interest payable to the public; allocations of special
drawing rights; deposit funds; miscellaneous liability (including checks outstanding) and asset accounts; seigniorage; increment on gold; net gain/loss for U.S.
currency valuation adjustment; net gain/loss for IMF valuation adjustment; and
profit on the sale of gold.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government." Treasury Bulletin, and the Budget of the United States Government, Fiscal Year 1985.
A28
1.39
DomesticNonfinancialStatistics • September 1984
U.S. B U D G E T R E C E I P T S A N D O U T L A Y S
Millions of dollars
Calendar year
Source or type
Fiscal
year
1981
Fiscal
year
1982
Fiscal
year
1983
1982
HI
1983
H2
HI
1984
May
June
July
RECEIPTS
1 All sources
599,272
617,766
600,563
322,478
286,338
306,331
37,459
69,282
52,017
285,917
256,332
41
76,844
47,299
297,744
267,513
39
84,691
54,498
288,938
266,010
36
83,586
60,692
150,565
133,575
34
66,174
49,217
145,676
131,567
5
20,040
5,938
144,550
135,531
30
63,014
54,024
4,333
23,519
8
1,269
20,463
32,200
23,347
3
11,196
2,346
22,398
23,013
3
789
1,407
73,733
12,5%
65,991
16,784
61,780
24,758
37,836
8,028
25,661
11,467
33,522
13,809
2,295
2,015
11,929
614
3,376
1,313
182,720
201,498
209,001
108,079
94,278
110,521
26,441
19,759
21,361
156,932
172,744
179,010
88,795
85,063
90,912
17,168
17,811
18.858
6,041
15,763
3,984
7,941
16,600
4,212
6,756
18,799
4,436
7,357
9,809
2,119
177
6,857
2,181
6,427
11,146
2,1%
432
8,457
384
1,165
373
410
0
2,093
410
40,839
8,083
6,787
13,790
36,311
8,854
7,991
16,161
35,300
8,655
6,053
15,594
17,525
4,310
4,208
7,984
16,556
4,299
3,445
7,891
16,904
4,010
2,883
7,751
3,322
990
550
1,543
3,229
1,060
466
1,253
3,298
1,088
476
1,333
18 All types
657,204
728,424
795,917
348,683
390,847
3%,477
71,391
71,283
68,433
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology . . .
Energy
Natural resources and environment
Agriculture
159,765
11,130
6,359
10,277
13,525
5,572
187,418
9,982
7,070
4,674
12,934
14,875
210,461
8,927
7,777
4,035
12,676
22,173
93,154
5,183
3,370
2,946
5,636
7,087
100,419
4,406
3,903
2,059
6,940
13,260
105,072
4,705
3,486
2,073
5,892
10,154
19,955
999
756
119
951
687
19,659
857
705
350
975
191
18,870
1,117
745
309
1,232
503
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development . . . .
Education, training, employment, social
services
3,946
23,381
9,394
3,865
20,560
7,165
4,721
21,231
7,302
1,408
9,915
3,055
2,244
10,686
4,186
2,164
9,918
3,124
2,013
1,798
563
296
2,077
638
559
2,322
682
31,402
26,300
25,726
12,607
12,187
12,801
2,260
2,022
2,075
26,858
178,733
85,514
27,435
202,531
92,084
28,655]
223,311>
106,21lj
150,001'
172,852
184,207
2,638
19,555
8,498
2,515
21,718
6,380
2,536
19,656
7,047
22,988
4,6%
4,614
6,856
68,726
-16,509
23,955
4,671
4,726
6,393
84,697
-13,270
24,845
5,014
4,991
6,287
89,774
-21,424
112,782
2,334
2,400
3,325
41,883
-6,490
13,241
2,373
2,322
3,152
44,948
-8,333
11,334
2,522
2,434
3,124
42,358
-8,885
2,204
441
558
80
10,235
-2,918
3,151
463
471
204
9,606
-998
1,243
543
290
1,256
8,743
-1,296
2 Individual income taxes, net
3
Withheld
Presidential Election Campaign Fund . . .
4
5
Nonwithheld
Refunds
6
Corporation income taxes
7
Gross receipts
Refunds
8
9 Social insurance taxes and contributions,
net
10 Payroll employment taxes and
contributions'
11
Self-employment taxes and
contributions 2
12
Unemployment insurance
13 Other net receipts 3
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 4
OUTLAYS
29 Health
30 Social security and medicare
31 Income security
32
33
34
35
36
37
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Net interest*
Undistributed offsetting receipts 7
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. In accordance with the Social Security Amendments Act of 1983, the
Treasury now provides social security and medicare outlays as a separate
function. Before February 1984, these outlays were included in the income
security and health functions.
6. Net interest function includes interest received by trust funds.
7. Consists of rents and royalties on the outer continental shelf and U.S.
government contributions for employee retirement.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government" and the Budget of the U.S. Government, Fiscal Year 1985.
Federal Finance All
1.40
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1982
1984
1983
Item
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Dec. 31
Sept. 30
Mar. 31
June 30
1 Federal debt outstanding
1,084.7
1,147.0
1,201.9
1,249.3
1,324.3
1,381.9
1,415.3
1,468.3
1,517.2
2 Public debt securities
3 Held by public
Held by agencies
4
1,079.6
867.9
211.7
1,142.0
925.6
216.4
1,197.1
987.7
209.4
1,244.5
1,043.3
201.2
1,319.6
1,090.3
229.3
1,377.2
1,138.2
239.0
1,410.7
1,174.4
236.3
1,463.7
1,223.9
239.8
1,512.7
1,255.1
257.6
5.0
3.9
1.2
5.0
3.7
1.2
4.8
3.7
1.2
4.8
3.7
1.1
4.7
3.6
1.1
4.7
3.6
1.1
4.6
3.5
1.1
4.6
3.5
1.1
4.5
3.4
1.1
5 Agency securities
6
Held by public
Held by agencies
7
1,080.5
1,142.9
1,197.9
1,245.3
1,320.4
1,378.0
1,411.4
1,464.5
1,513.4
9 Public debt securities
10 Other debt 1
1,079.0
1.5
1,141.4
1.5
1,196.5
1.4
1,243.9
1.4
1,319.0
1.4
1,376.6
1.3
1,410.1
1.3
1,463.1
1.3
1,512.1
1.3
11 MEMO: Statutory debt limit
1,143.1
1,143.1
1,290.2
1,290.2
1,389.0
1,389.0
1,490.0
1,490.0
1,520.0
8 Debt subject to statutory limit
1. Includes guaranteed debt of government agencies, specified participation
certificates, notes to international lending organizations, and District of Columbia
stadium bonds.
1.41
GROSS PUBLIC DEBT OF U.S. TREASURY
Billions of dollars, end of period
NOTE. Data from Treasury Bulletin (U.S. Treasury Department),
Types and Ownership
1983
Type and holder
1979
1980
1981
Q4
Q3
1 Total gross public debt
By type
7. Interest-bearing debt
3 Marketable
4 Bills
5 Notes
6
Bonds
7 Nonmarketable 1
8
State and local government series
9
Foreign issues 2
10
Government
Public
11
12 Savings bonds and notes
13 Government account series 3
1984
1982
Ql
Q2
845.1
930.2
1,028.7
1,197.1
1,377.2
1,410.7
1,463.7
1,512.7
844.0
530.7
172.6
283.4
74.7
313.2
24.6
28.8
23.6
5.3
79.9
177.5
928.9
623.2
216.1
321.6
85.4
305.7
23.8
24.0
17.6
6.4
72.5
185.1
1,027.3
720.3
245.0
375.3
100.0
307.0
23.0
19.0
14.9
4.1
68.1
196.7
1,195.5
881.5
311.8
465.0
104.6
314.0
25.7
14.7
13.0
1.7
68.0
205.4
1,375.8
1,024.0
340.7
557.5
125.7
351.8
35.1
11.4
11.4
.0
70.3
234.7
1,400.9
1,050.9
343.8
573.4
133.7
350.0
36.7
10.4
10.4
.0
70.7
231.9
1,452.1
1,097.7
350.2
604.9
142.6
354.4
38.1
9.9
9.9
.0
71.6
234.6
1,501.1
1,126.6
343.3
632.1
151.2
374.5
39.9
8.8
8.8
.0
72.3
253.2
9.8
11.6
11.6
1.2
1.3
1.4
1.6
1.5
15
16
17
18
19
20
21
22
By holder*
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Money market funds
Insurance companies
Other companies
State and local governments
187.1
117.5
540.5
88.1
5.6
21.4
17.0
69.9
192.5
121.3
616.4
112.1
3.5
24.0
19.3
84.4
203.3
131.0
694.5
111.4
21.5
29.0
17.9
85.6
209.4
139.3
848.4
131.4
42.6
39.1
24.5
113.4
239.0
155.4
982.7
176.3
22.1
47.3
35.9
n.a.
236.3
151.9
1,022.6
188.8
22.8
48.9
39.7r
n.a.
239.8
150.8
1,073.0
189.8
19.4
n.a.
45.4'
n.a.
257.6
152.9
1,093.7
183.8
14.9
n.a.
47.9
n.a.
73
74
25
26
Individuals
Savings bonds
Other securities
Foreign and international 5
Other miscellaneous investors 6
79.9
38.1
119.0
99.6
72.5
44.6
129.7
126.3
68.1
42.7
136.6
167.8
68.3
48.2
149.5
231.4
70.6
58.4
160.2
n.a.
71.5
61.9
168.9
n.a.
72.2
64.7'
166.3'
n.a.
72.9
69.3
170.9
n.a.
14 Non-interest-bearing debt
1. Includes (not shown separately): Securities issued to the Rural Electrification Administration; depository bonds, retirement plan bonds, and individual
retirement bonds.
2. Nonmarketable dollar-denominated and foreign currency-denominated
series held by foreigners.
3. Held almost entirely by U.S. government agencies and trust funds.
4. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.
5. Consists of investments of foreign and international accounts. Excludes noninterest-bearing notes issued to the International Monetary Fund.
6. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. government deposit accounts, and U.S. government-sponsored agencies.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly
Statement of the Public Debt of the United States; data by holder. Treasury
Bulletin.
A30
1.42
DomesticNonfinancialStatistics • September 1984
U.S. GOVERNMENT SECURITIES DEALERS
Par value; averages of daily figures, in millions of dollars
Transactions
1984
Item
1981
1982
1984 week ending Wednesday
1983
June r
July'
Aug.
July 4
July 11
July 18
July 25
Aug. 1
Aug. 8
1
Immediate delivery 1
U.S. government securities
24,728
32,271
42,135
51,017
47,313
44,458
45,863'
51,306'
43,755
44,554
48,839
47,271
2
3
4
5
6
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
14,768
621
4,360
2,451
2,528
18,398
810
6,272
3,557
3,234
22,393
708
8,758
5,279
4,997
27,529
1,206
10,597
6,785
4,899
23,390
1,195
9,827
7,679
5,222
21,319
940
9,448
6,737
6,014
24,106
1,535
9,532'
6,199
4,492
25,596'
1,208
8,869
9,465
6,168
23,013
1,289
7,930
6,375
5,148
21,915
922
9,627
7,044
5,046
21,439
1,182
13,171
7,808
5,239
22,130
1,075
11,729
6,034
6,303
/
8
9
10
11
12
13
14
15
16
17
18
By type of customer
U.S. government securities
dealers
U.S. government securities
brokers
All others 2
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures transactions 3
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions 4
U.S. government securities
Federal agency securities
1,640
1,769
2,257
2,270
2,384
2,663
2,902
2,660
2,497
1,396
2,866
2,868
11,750
11,337
3,306
4,477
1,807
6,128
15,659
15,344
4,142
5,001
2,502
7,595
21,045
18,832
5,576
4,334
2,642
8,036
26,510
22,237
7,090
3,976
3,107
10,034
23,511
21,419
7,956
4,512
3,185
11,580
21,487
20,308
7,002
3,002
2,531
10,528
21,324
21,639'
6,889
4,263'
2,981
12,251
24,649
23,997'
7,737
4,993
3,260
11,038
21,900
19,358
9,614
4,336
3,245
12,056
22,858
20,300
7,261
4,546
3,170
11,117
24,460
21,513
7,479
3,915
2,963
11,312
22,323
22,080
8,809
3,560
3,275
10,650
3,523
1,330
234
5,031
1,490
259
6,655
2,501
265
8,173
4,960
381
7,126
4,235
221
5,498
4,380
282
6,033
3,771'
417
6,699
4,817'
263
8,218
4,046
195
7,554
4,035
225
6,149
4,405
265
5,798
5,128
207
365
1,370
835
982
1,492
1,646
1,703
2,810
1J42
2J11
1,434
3,140
1,382
2,997
1,151
3,367
1,016
3,178
1,296
1,747
1,270
2,135
1,622
5,063
1. Before 1981, data for immediate transactions include forward transactions.
2. Includes, among others, all other dealers and brokers in commodities and
securities, nondealer departments of commercial banks, foreign banking agencies,
and the Federal Reserve System.
3. Futures contracts are standardized agreements arranged on an organized
exchange in which parties commit to purchase or sell securities for delivery at a
future date.
4. Forward transactions are agreements arranged in the over-the-counter
market in which securities are purchased (sold) for delivery after 5 business days
1.43
U.S. GOVERNMENT SECURITIES DEALERS
Averages of daily figures, in millions of dollars
from the date of the transaction for government securities (Treasury bills, notes,
and bonds) or after 30 days for mortgage-backed agency issues.
NOTE. Averages for transactions are based on number of trading days in the
period.
Transactions are market purchases and sales of U.S. government securities
dealers reporting to the Federal Reserve Bank of New York. The figures exclude
allotments of, and exchanges for, new U.S. government securities, redemptions
of called or matured securities, purchases or sales of securities under repurchase
agreement, reverse repurchase (resale), or similar contracts.
Positions and Financing
1984
Item
1981
1982
1984 week ending Wednesday
1983
June
July'
Aug.
June 27
July 4
July 11
July 18
July 25
Positions
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Net immediate 1
U.S. government securities
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
Federal agency securities..
Certificates of deposit
Bankers acceptances
Commercial paper
Futures positions
Treasury bills
Treasury coupons
Federal agency securities..
Forward positions
U.S. government securities
Federal agency securities..
9,033
6,485
-1,526
1,488
292
2,294
2,277
3,435
1,746
2,658
9,328
4,837
-199
2,932
-341
2,001
3,712
5,531
2,832
3,317
6,263
4,282
-177
1,709
-78
528
7,172
5,839
3,332
3,159
-6,387
-2,628
-596
343
-1,341
-2,250
15,996'
6,990
3,498
3,969
-6,121
-2,362
-604
331
-860
-2,715
16,040
7,407
-8,934
-2,733
522
-2,508
-2,361
-224
-4,125
-1,032
170
2,613
1,863'
826
-603
-451
-788
-1,190
-1,935
-3,561
-836
-10,763
3,161
3,363
4,546
-89
2,471
-1,167
-2,490
16,098
6,708
4,693
4,158
-7,714
-4,087
-848
1,093
-1,431
-2,535
14,981
7,289
3,172
3,817
-11,796
-5,310
-1,038
948
-2,029
-4,453
15,961
7,569
3,703
3,562
-7,932
-4,371
-670
339
-712
-2,607
16,889
7,780
4,296
3,132
-6,929
-2,912
-547
-426
-616
-2,519
16,230
7,492
4,283
3,350
-4,594
-223
-615
-818
-457
-2,574
15,191
7,025
4,002
2,907
-1,383
3,368
622
-7,158
2,826
610
-95
2,354
977
828
3,501
1,071
-1,372
3,217
616
-1,430
2,975
530
-1,401
3,601
560
-1,794
-10,272
-673
-9,682
-416
-10,161
-565
-11,555
-1,874
-11,239
-1,696
-10,286
-2,696
-9,177
44,412
68,725
42,730
71,150
43,159
66,738
42,822
69,361
71,413
55,059
55,549
68,881
73,162
51,592
73,633
52,588
Financing2
Reverse repurchase agreements
Overnight and continuing
Term agreements
Repurchase agreements 4
18 Overnight and continuing
19 Term agreements
16
17
For notes see opposite page.
3
14,568
32,048
26,754
48,247
29,099
52,493
44,990
65,225
42,412
69,221
35,919
29,449
49,695
43,410
57,946
44,410
70,133
54,761'
69,928
55,217
t
t
n.a.
Federal Finance All
1.44
FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
Millions of dollars, end of period
Debt Outstanding
1984
Agency
1980
1982
1981
Jan.
1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department 1
4
Export-Import Bank 2 3
Federal Housing Administration 4
5
6 Government National Mortgage Association
participation certificates 5
7 Postal Service 6
8 Tennessee Valley Authority
United States Railway Association 6
9
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
Feb.
Mar.
Apr.
May
June
188,665
221,946
237,085
239,872
241,628
244,691'
247,148
252,044
255,376
28,606
610
11,250
477
31,806
484
13,339
413
33,055
354
14,218
288
33,919
234
14,852
173
33,785
215
14,846
169
32,800
206
15,347
166
34,273
197
15,344
162
34,231
188
15,344
156
34,473
181
15,604
155
2,817
1,770
11,190
492
2,715
1,538
13,115
202
2,165
1,471
14,365
194
2,165
1,404
14,980
111
2,165
1,404
14,875
111
2,165
1,404
14,805
111
2,165
1,404
14,890
111
2,165
1,337
14,930
111
2,165
1,337
14,980
51
160,059
37,268
4,686
55,182
62,923
190,140
54,131
5,480
58,749
71,359
421
204,030
55,967
4,524
70,052
71,896
1,591
205,953
48,344
6,679
74,676
73,023
3,231
207,843
48,224
7,556
75,865
72,856
3,342
211,891
48,594
8,633
77,966
73,180
3,518
212,872
49,786
8,134
78,073
73,130
3,749
217,813
52,281
9,131
79,267
73,138
3,996
220,903
54,799
8,988
79,871
73,061
4,184
87,460
110,698
126,424
135,940
135,859
137,707
138,769
139,936
141,734
10,654
1,520
2,720
9,465
492
12,741
1,288
5,400
11,390
202
14,177
1,221
5,000
12,640
194
14,789
1,154
5,000
13,255
111
14,789
1,154
5,000
13,150
111
15,296
1,154
5,000
13,080
111
15,296
1,154
5,000
13,165
111
15,296
1,087
5,000
13,205
111
15,556
1,087
5,000
13,255
51
39,431
9,196
11,262
48,821
13,516
12,740
53,261
17,157
22,774
54,776
19,927
26,928
54,471
19,982
27,202
55,186
20,186
27,694
55,691
20,413
27,939
56,476
20,456
28,305
57,701
20,611
28,473
(8)
MEMO
16 Federal Financing Bank debt 9
17
18
19
20
21
Lending to federal and federally sponsored
agencies
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.
NOTES TO TABLE 1.43
1. Immediate positions are net amounts (in terms of par values) of securities
owned by nonbank dealer firms and dealer departments of commercial banks on a
commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase (RPs). The maturities of some
repurchase agreements are sufficiently long, however, to suggest that the securities involved are not available for trading purposes. Prior to 1984, securities
owned, and hence dealer positions, do not include all securities acquired under
reverse RPs. After January 1984, 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. Before
1981, data for immediate positions include forward positions.
7. Includes outstanding noncontingent liabilities: Notes, bonds, and debentures.
8. Before late 1981, the Association obtained financing through the Federal
Financing Bank.
9. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB
incurs debt solely for the purpose of lending to other agencies, its debt is not
included in the main portion of the table in order to avoid double counting.
10. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any
particular agency being generally small. The Farmers Home Administration item
consists exclusively of agency assets, while the Rural Electrification Administration entry contains both agency assets and guaranteed loans.
2. Figures cover financing involving U.S. government and federal agency
securities, negotiable CDs, bankers acceptances, and commercial paper.
3. Includes all reverse repurchase agreements, including those that have been
arranged to make delivery on short sales and those for which the securities
obtained have been used as collateral on borrowings, that is, matched agreements.
4. Includes both repurchase agreements undertaken to finance positions and
"matched book" repurchase agreements.
NOTE. Data for positions are averages of daily figures, in terms of par value,
based on the number of trading days in the period. Positions are shown net and are
on a commitment basis. Data for financing are based on Wednesday figures, in
terms of actual money borrowed or lent.
A32
1.45
DomesticNonfinancialStatistics • September 1984
NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
1983
Type of issue or issuer,
or use
1981
1982
Nov.
1 All issues, new and refunding
1
1984
1983
Dec.
Jan/
Feb/
Mar/
Apr/
May r
June
47,732
79,138
86,421
5,945
9,833
5,068
4,591
5,505
5,569
7,090
6,391
12,394
34
35,338
55
21,094
225
58,044
461
21,566
96
64,855
253
1,730
15
4,215
39
1,153
15
8,680
39
1,121
0
3,947
1
1,850
2
2,741
2
2,509
2
2,9%
4
2,311
3
3,258
8
2,409
3
4,681
13
1,813
3
4,578
15
Type of issuer
b State
7 Special district and statutory authority
8 Municipalities, counties, townships, school districts
5,288
27,499
14,945
8,438
45,060
25,640
7,140
51,297
27,984
405
3,358
2,182
204
6,323
3,306
327
3,502
1,239
935
2,139
1,517
584
3,014
1,907
886
2,826
1,857
497
3,767
2,826
447
3,830
2,114
9 Issues for new capital, total
46,530
74,804
72,441
5,448
9,405
4,065
4,004
4,687
4,437
6,007
5,806
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
4,547
3,447
10,037
12,729
7,651
8,119
6,482
6,256
14,259
26,635
8,349
12,822
8,099
4,387
13,588
26,910
7,821
11,637
406
353
1,122
2,175
584
808
753
438
1,243
2,951
2,945
1,075
388
126
1,915
831
128
677
354
336
740
1,134
288
1,152
592
56
1,279
1,100
79
1,581
465
548
669
1,192
355
1,208
891
402
1,379
1,332
457
1,546
730
653
1,168
1,943
344
%8
2
3
4
5
10
11
12
13
14
15
Type of issue
General obligation
U.S. government loans 2
Revenue
U.S. government loans 2
1. Par amounts of long-term issues based on date of sale.
2. Consists of tax-exempt issues guaranteed by the Farmers Home Administration.
1.46
SOURCE. Public Securities Association.
NEW SECURITY ISSUES of Corporations
Millions of dollars
Type of issue or issuer,
or use
1983
1981
1982'
1984
1983
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
1 All issues1-2
70,441
84,638
98,550
8,103
6,812
7,690
7,629
5,442
6,047
4,023
7,265
2 Bonds
45,092
54,076
46,971
4,075
3,173
5,647
5,250
3,346
4,262
2,214
5,044
Type of offering
3 Public
4 Private placement
38,103
6,989
44,278
9,798
46,971
n.a.
4,075
n.a.
3,173
n.a.
5,647
n.a.
5,250
n.a.
3,346
n.a.
4,262
n.a.
2,214
n.a.
5,044
n.a.
12,325
5,229
2,052
8,963
4,280
12,243
12,822
5,442
1,491
12,327
2,390
19,604
7,842
5,158
1,038
7,241
3,159
22,531
22
22
111
910
0
3,009
423
201
105
120
0
2,324
179
976
10
325
210
3,947
452
626
75
385
0
3,712
68
258
180
521
200
2,119
691
1,0%
69
495
0
1,911
383
221
0
100
0
1,510
1,440
531
225
475
0
2,374
11 Stocks3
25,349
30,562
51,579
4,028
3,639
2,043
2,379
2,096
1,785
1,809
2,221
Type
12 Preferred
13 Common
1,797
23,552
5,113
25,449
7,213
44,366
433
3,595
253
3,386
305
1,738
425
1,954
227
1,869
339
1,446
579
1,230
244
1,977
5,074
7,557
779
5,577
1,778
4,584
5,649
7,770
709
7,517
2,227
6,690
14,135
13,112
2,729
5,001
1,822
14,780
458
1,598
192
622
13
1,145
649
852
413
245
12
1,468
427
465
54
225
30
842
299
616
15
45
20
1,384
387
486
105
134
18
966
165
732
62
188
94
544
442
718
84
116
16
433
584
316
1
282
11
1,027
5
6
7
8
9
10
14
15
16
17
18
19
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures, which represent gross proceeds of issues maturing in more than one
year, sold for cash in the United States, are principal amount or number of units
multiplied by offering price. Excludes offerings of less than $100,000, secondary
offerings, undefined or exempted issues as defined in the Securities Act of 1933,
employee stock plans, investment companies other than closed-end, intracorporate transactions, and sales to foreigners.
2. Data for 1983 include only public offerings.
3. Beginning in August 1981, gross stock offerings include new equity volume
from swaps of debt for equity.
SOURCE. Securities and Exchange Commission and the Board of Governors of
the Federal Reserve System.
Corporate Finance
1.47
O P E N - E N D INVESTMENT COMPANIES
Millions of dollars
Net Sales and Asset Position
1983
Item
1982
A33
1984
1983
Dec.
Jan.
Mar.
Feb.
Apr.
May
June'
July
INVESTMENT COMPANIES'
1 Sales of own shares 2
2 Redemptions of own shares 3
3 Net sales
45,675
30,078
15,597
84,793
57,120
27,673
6,846
5,946
900
10,274
5,544
4,730
8,233
5,162
3,071
8,857
5,339
3,518
9,549
7,451
2,098
8,657
5,993
2,664
8,397
6,156
2,241
7,559
5,777
1,782
4 Assets 4
Cash position 5
5
6
Other
76,841
6,040
70,801
113,599
8,343
105,256
113,599
8,343
105,256
114,839
8,963
105,876
111,068
9,140
101,928
114,537
10,406
104,131
116,812
10,941
105,871
111,071
10,847
100,224
115,034
11,907
103,127
115,481
11,813
103,668
5. Also includes all U.S. government securities and other short-term debt
securities.
1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment of capital gains distributions and share issue of conversions from one fund to
another in the same group.
3. Excludes share redemption resulting from conversions from one fund to
another in the same group.
4. Market value at end of period, less current liabilities.
1.48
NOTE. Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the
Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1982
Account
1981
1982
1983
1984
1983
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
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
189.9
221.2
81.2
140.0
66.5
73.5
159.1
165.5
60.7
104.8
69.2
35.6
225.2
203.2
75.8
127.4
72.9
54.5
161.7
169.8
62.9
106.9
68.6
38.2
163.3
168.9
61.9
107.0
69.0
38.1
151.6
155.8
55.0
100.8
70.2
30.6
179.1
161.7
59.1
102.6
71.1
31.4
216.7
198.2
74.8
123.4
71.7
51.7
245.0
227.4
84.7
142.6
73.3
69.3
260.0
225.5
84.5
141.1
75.4
65.6
277.4
243.3
92.7
150.6
77.7
72.9
7 Inventory valuation
8 Capital consumption adjustment
-23.6
-7.6
-9.5
3.1
-11.2
33.2
-8.9
.8
-10.1
4.5
-12.6
8.4
-4.3
21.7
-12.1
30.6
-19.3
36.9
-9.2
43.6
-13.5
47.6
SOURCE. Survey of Current Business (Department of Commerce).
A34
1.49
DomesticNonfinancialStatistics • September 1984
NONFINANCIAL CORPORATIONS
Billions of dollars, except for ratio
Current Assets and Liabilities
1983'
Account
1978
1979
1980
1981'
1984
1982
QL
1 Current assets
2
3
4
5
6
Q2
Q3
Q4
QL
1,043.7
1,214.8
1,327.0
1,418.4
1,432.7
1,444.2
1,468.0
1,522.8
1,557.3
1,604.4
105.5
17.2
388.0
431.8
101.1
Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other
118.0
16.7
459.0
505.1
116.0
126.9
18.7
506.8
542.8
131.8
135.5
17.6
532.0
583.7
149.5
147.0
22.8
519.2
578.6
165.2
143.1
26.0
525.3
577.6
172.1
147.9
28.2
539.3
576.2
176.4
150.5
27.0
565.0
597.3
183.0
165.8
30.6
577.8
599.3
183.7
158.8
36.3
597.7
622.8
188.8
7 Current liabilities
669.5
807.3
889.3
970.0
976.8
983.4
990.2
1,026.6
1,043.0
1,077.7
8 Notes and accounts payable
9 Other
383.0
286.5
460.8
346.5
513.6
375.7
546.3
423.7
543.0
433.8
530.9
452.6
536.6
453.6
559.4
467.2
577.9
465.2
581.4
496.3
10 Net working capital
374.3
407.5
437.8
448.4
455.9
460.7
477.8
496.3
514.3
526.7
11 MEMO; Current ratio 1
1.559
1.505
1.492
1.462
1.467
1.469
1.483
1.483
1.493
1.489
1. Ratio of total current assets to total current liabilities.
All data in this table reflect the most current benchmarks. Complete data are
available upon request from the Flow of Funds Section, Division of Research and
Statistics, Board of Governors of the Federal Reserve System, Washington, D.C.
20551.
NOTE. For a description of this series, see "Working Capital of Nonfinancial
C o r p o r a t i o n s " i n t h e J u l y 1978 BULLETIN, p p . 5 3 3 - 3 7 .
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.
1983
Industry 1
1982
1983
1984
1984 1
Ql
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
9 Gas and other
10 Commercial and other 2
Q3
Q4
Ql
Q2
Q31
Q41
282.71
269.22
307.60
261.71
261.16
270.05
283.96
293.15
302.70
316.22
318.33
56.44
63.23
51.78
59.75
62.73
67.66
50.74
59.12
48.48
60.31
53.06
58.06
54.85
61.50
58.94
63.84
60.20
67.46
64.82
69.64
66.98
69.69
15.45
11.83
13.11
12.03
10.91
11.93
12.43
13.95
12.13
13.24
13.14
4.38
3.93
3.64
3.92
3.77
3.50
5.19
2.91
4.36
3.35
4.09
3.60
3.64
4.10
3.14
4.07
3.57
3.36
4.63
3.32
3.91
4.41
2.77
4.28
5.64
2.98
4.33
5.31
3.19
4.36
5.41
2.70
4.47
33.40
8.55
93.68
34.99
7.00
92.67
34.78
9.55
107.30
33.97
7.64
87.17
34.86
6.62
89.10
35.84
6.38
93.79
35.31
7.37
100.62
35.74
7.87
101.35
35.30
9.30
105.35
34.20
9.86
111.60
33.88
11.15
110.92
• T r a d e and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1. Anticipated by business.
Q2
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).
Corporate Finance
1.51
DOMESTIC FINANCE COMPANIES
Billions of dollars, end of period
Assets and Liabilities
1984
1983
Account
A35
1978
1979
1980
1981
1982
Q2
Q4
Q3
Q2
Ql
ASSETS
4
5
6
7
8
Accounts receivable, gross
Consumer
Business
Total
LESS: Reserves for unearned income and l o s s e s . . . .
Accounts receivable, net
Cash and bank deposits
Securities
All other
52.6
63.3
116.0
15.6
100.4
3.5
1.3
17.3
9
Total assets
1
2
3
65.7
70.3
136.0
20.0
116.0
73.6
72.3
145.9
23.3
122.6
85.5
80.6
166.1
28.9
137.2
89.5
81.0
170.4
30.5
139.8
91.3
84.9
176.2
30.4
145.8
92.3
86.8
179.0
30.1
148.9
92.8
95.2
188.0
30.6
157.4
96.9
101.1
198.0
31.9
166.1
99.6
104.2
203.8
33.4
170.4
24.9'
27.5
34.2
39.7
44.3
45.0
45.3
47.1
48.1
122.4
140.9
150.1
171.4
179.5
190.2
193.9
202.7
213.2
218.5
6.5
34.5
8.5
43.3
13.2
43.4
15.4
51.2
18.6
45.8
16.3
49.0
17.0
49.7
19.1
53.6
14.7
58.4
15.3
62.0
8.1
43.6
12.6
8.2
46.7
14.2
7.5
52.4
14.3
9.6
54.8
17.8
8.7
63.5
18.7
9.6
64.5
24.0
8.7
66.2
24.4
11.3
65.4
27.1
12.2
68.7
29.8
15.0
67.6
29.0
1
>
J
LIABILITIES
Bank loans
Commercial paper
Debt
12
Short-term, n.e.c
13
Long-term, n.e.c
14
Other
10
11
15
Capital, surplus, and undivided profits
16
Total liabilities and capital
17.2
19.9
19.4
22.8
24.2
26.7
27.9
26.2
29.4
29.6
122.4
140.9
150.1
171.4
179.5
190.2
193.9
202.7
213.2
218.5
1. Beginning Q1 1979, asset items on lines 6, 7, and 8 are combined.
These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.
NOTE. Components may not add to totals due to rounding.
1.52
DOMESTIC FINANCE COMPANIES Business Credit
Millions of dollars, seasonally adjusted except as noted
Changes in accounts
receivable
Type
Extensions
Repayments
1984
1984
1984
Accounts
receivable
outstanding
June 30,
1984'
Apr.
1 Total
2
3
4
5
Retail automotive (commercial vehicles)
Wholesale automotive
Retail paper on business, industrial, and farm equipment
Loans on commercial accounts receivable and factored commercial accounts receivable
6 All other business credit
1. Not seasonally adjusted.
May
June
Apr.
May
June
Apr.
May
June
104,206
818
997
973
24,643
27,451
24,412
23,825
26,454
23,439
25,557
16,087
30,175
466
343
-5
816
-402
233
660
-587
634
2,002
8,713
1,142
2,391
8,626
1,406
2,336
7,542
1,406
1,536
8,370
1,147
1,575
9,028
1,173
1,676
8,129
772
10,857
21,530
-78
92
302
48
-79
345
10,705
2,081
12,468
2,560
10,776
2,352
10,783
1,989
12,166
2,512
10,855
2,007
NOTE. These data also appear in the Board's G.20 (422) release. For address,
see inside front cover.
A36
1.53
Domestic Financial Statistics • September 1984
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1984
Item
Jan.
Feb.
Mar.
Apr.
May
June
July
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
6
Conventional mortgages on new homes
Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount) 2
Contract rate (percent per annum)
90.4
65.3
74.8
27.7
2.67
14.16
94.6
69.8
76.6
27.6
2.95
14.47
92.8
69.6
77.1
26.7
2.40
12.20
92.9
71.7
79.2
27.8
2.61
11.80
104.1
77.8
77.8
27.3
2.41
11.78
94.0
73.4
80.4
27.9
2.52
11.56
92.4
71.1
79.2
28.0
2.63
11.55
93.9
72.8
79.8
27.6
2.63
11.68
93.4
72.5
79.9
28.1
2.58
11.61
97.1
73.6
78.2
28.2
3.13
11.97
7
8
Yield (percent per annum)
FHLBB series 5
HUD series 4
14.74
16.52
15.12
15.79
12.66
13.43
12.29
13.28
12.23
13.31
12.02
13.57
12.04
13.77
12.18
14.38
12.10
14.65
12.56
14.54
16.31
15.29
15.31
14.68
13.11
12.26
13.08
12.35
13.20
12.31
13.68
12.70
13.80
13.01
15.01
13.67
14.91
14.14
14.58
13.86
SECONDARY MARKETS
9
10
Yield (percent per annum)
FHA mortgages (HUD series) 5
GNMA securities 6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
11
12
13
14
15
16
17
Mortgage holdings (end of period)
Total
FHA/VA-insured
Conventional
Mortgage transactions (during period)
Purchases
Mortgage
commitments1
Contracted (during period)
Outstanding (end of period)
58,675
39,341
19,334
66,031
39,718
26,312
74,847
37,393
37,454
79,049
40,873
38,177
79,350
35,420
43,930
80,974
35,329
45,645
81,956
35,438
46,518
82,697
35,309
47,388
83,243
35,153
48,090
83,858
35,049
48,809
6,112
2
15,116
2
17,554
3,528
1,285
20
1,507
723
2,030
0
1,775
235
1,379
0
1,209
0
1,226
0
9,331
3,717
22,105
7,606
18,607
5,461
1,772
5,470
1,930
5,872
1,626
5,333
1,561
5,135
1,233
4,981
1,995
5,640
1,976
6,281
5,231
1,065
4,166
5;131
1,027
4,102
5,9%
974
5,022
8,049
940
7,109
8,566
934
7,632
8,980
929
8,050
9,143
924
8,219
9,224
918
8,306
9,478
912
8,566
3,800
3,531
23,673
24,170
23,089
19,686
1,419
984
1,389
810
1,291
863
983
717
987
829
2,204
1,854
6,896
3,518
28,179
7,549
32,852
16,964
1,470
16,994
1,386
16,944
1,874
17,514
1,701
18,183
1,966
19,139
2,712
19,649
FEDERAL H O M E LOAN MORTGAGE CORPORATION
18
19
20
21
22
23
24
Mortgage holdings (end of period)*
Total
FHA/VA
Conventional
Mortgage transactions (during period)
Purchases
Mortgage
commitments9
Contracted (during period)
Outstanding (end of period)
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. Any gaps in data are due to periods of adjustment to changes in
maximum permissible contract rates.
n.a.
6. Average net yields to investors on Government National Mortgage Association guaranteed, mortgage-backed, fully modified pass-through securities, assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying the
prevailing ceiling rate. Monthly figures are unweighted averages of Monday
quotations for the month.
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 Debt
1.54
MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
1983
Type of holder, and type of property
1982
1981
All holders
1- to 4-family
Multifamily
Commercial
Farm
6 Major financial institutions
7 Commercial banks 1
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
1984
1983
Q2
1
2
3
4
5
A37
Q4
Q3
Ql
Q2'
1,583,264
1,065,294
136,354
279,889
101,727
1,655,036
1,105,717
140,551
302,055
106,713
1,826,395
1,214,592
150,949
351,287
109,567
1,723,052
1,146,926
144,731
323,427
107,968
1,775,117
1,182,356
147,052
336,697
109,012
1,826,395
1,214,592
150,949
351,287
109,567
l,869,442 r
l,244,157 r
154,338'
360,888'
110,059'
1,927,668
1,281,922
159,494
375,275
110,977
1,040,827
284,536
170,013
15,132
91,026
8,365
1,023,611
300,203
173,157
16,421
102,219
8,406
1,109,963
328,878
181,672
18,023
119,843
9,340
1,048,688
310,217
174,032
16,876
110,437
8,872
1,079,605
320,299
178,054
17,424
115,692
9,129
1,109,963
328,878
181,672
18,023
119,843
9,340
1,136,168
338,877
184,925
19,689
124,571
9,692
1,180,558
351,246
190,727
20,548
129,961
10,010
99,997
68,187
15,960
15,810
40
97,805
66,777
15,305
15,694
29
136,054
96,569
17,785
21,671
29
119,236
84,349
16,667
18,192
28
129,645
92,467
17,588
19,562
28
136,054
96,569
17,785
21,671
29
143,180
101,868
18,441
22,841
30
148,756
105,985
18,928
23,813
30
12
13
14
15
16
Mutual savings banks
1- to 4-family
Multifamily
Commercial
Farm
17
18
19
20
Savings and loan associations
1- to 4-family
Multifamily
Commercial
518,547
433,142
37,699
47,706
483,614
393,323
38,979
51,312
493,432
389,811
42,435
61,186
474,510
377,947
39,954
56,609
482,305
381,744
41,334
59,227
493,432
389,811
42,435
61,186
502,143
395,940
43,435
62,768
526,838
413,831
45,308
67,699
21
22
23
24
25
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
137,747
17,201
19,283
88,163
13,100
141,989
16,751
18,856
93,547
12,835
151,599
15,385
19,189
104,279
12,746
144,725
15,860
18.778
97,416
12,671
147,356
15,534
18,857
100,209
12,756
151,599
15,385
19,189
104,279
12,746
151,968
14,971
19,153
105,270
12,574
153,718
14,982
19,312
106,774
12,650
126,094
4,765
693
4,072
138,138
4,227
676
3,551
147,370
3,395
630
2,765
142,094
3,643
651
2,992
142,224
3,475
639
2,836
147,370
3,395
630
2,765
150,784
2,900
618
2,282
152,687
2,715
605
2,110
26 Federal and related agencies
27 Government National Mortgage Association
28
1- to 4-family
29
Multifamily
30
31
32
33
34
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
2,235
914
473
506
342
1,786
783
218
377
408
2,141
1,159
173
409
400
1,605
381
555
248
421
600
211
32
113
244
2,141
1,159
173
409
400
2,094
1,005
303
319
467
1,344
281
463
81
519
35
36
37
Federal Housing and Veterans
Administration
1- to 4-family
Multifamily
5,999
2,289
3,710
5,228
1,980
3,248
4,894
1,893
3,001
5,084
1,911
3,173
5,050
2,061
2,989
4,894
1,893
3,001
4,832
1,956
2,876
4,771
1,846
2,925
38
39
40
Federal National Mortgage Association
1- to 4-family
Multifamily
61,412
55,986
5,426
71,814
66,500
5,314
78,256
73,045
5,211
74,669
69,396
5,273
75,174
69,938
5,236
78,256
73,045
5,211
80,975
75,770
5,205
83,243
77,633
5,610
41
42
43
Federal Land Banks
1- to 4-family
Farm
46,446
2,788
43,658
50,350
3,068
47,282
51,052
3,000
48,052
50,858
3,030
47,828
51,069
3,008
48,061
51,052
3,000
48,052
51,004
2,982
48,022
51,136
2,958
48,178
44
45
46
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
5,237
5,181
56
4,733
4,686
47
7,632
7,559
73
6,235
6,119
116
6,856
6,799
57
7,632
7,559
73
8,979
8,847
132
9,478
8,931
547
163,000
105,790
103,007
2,783
216,654
118,940
115,831
3,109
285,073
159,850
155,801
4,049
252,665
139,276
135,628
3,648
272,611
151,597
147,761
3,836
285,073
159,850
155,801
4,049
296,481
166,261
161,943
4,318
305,051
170,893
166,415
4,478
19,853
19,501
352
42,964
42,560
404
57,895
57,273
622
50,934
50,446
488
54,152
53,539
613
57,895
57,273
622
59,376
58,776
600
61,267
60,636
631
717
717
14,450
14,450
25,121
25,121
20,933
20,933
23,819
23,819
25,121
25,121
28,354
28,354
29,256
29,256
36,640
18,378
3,426
6,161
8,675
40,300
20,005
4,344
7,011
8,940
42,207
20,404
5,090
7,351
9,362
41,522
20,728
4,343
7,303
9,148
43,043
21,083
5,042
7,542
9,376
42,207
20,404
5,090
7,351
9,362
42,490
20,573
5,081
7,456
9,380
43,635
21,331
5,081
7,764
9,459
253,343
167,297
27,982
30,517
27,547
276,633
185,170
30,755
31,895
28,813
283,989
185,270
32,533
36,548
29,638
279,605
185,515
31,868
33,222
29,000
280,677
185,699
31,208
34,352
29,418
283,989
185,270
32,533
36,548
29,638
286,009'
185,629'
32,823'
37,663'
29,894'
289,372
186,505
33,553
39,183
30,131
47 Mortgage pools or trusts 2
48 Government National Mortgage Association
49
1- to 4-family
50
Multifamily
51
52
53
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
54
55
Federal National Mortgage Association 3
1- to 4-family
56
57
58
59
60
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
61 Individual and others 4
62
1- to 4-family5
63
Multifamily
64
Commercial
65 Farm
1. Includes loans held by nondeposit trust companies but not bank trust
departments.
2. Outstanding principal balances of mortgages backing securities insured or
guaranteed by the agency indicated.
3. Outstanding balances on FNMA's issues of securities backed by pools of
conventional mortgages held in trust. Implemented by FNMA in October 1981.
4. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and U.S. agencies for which amounts are small or
for which separate data are not readily available.
5. Includes estimate of residential mortgage credit provided by individuals.
NOTE. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve in conjunction with the
Federal Home Loan Bank Board and the Department of Commerce. Separation of
nonfarm mortgage debt by type of property, if not reported directly, and
interpolations and extrapolations when required, are estimated mainly by the
Federal Reserve. Multifamily debt refers to loans on structures of five or more
units.
A38
1.55
DomesticNonfinancialStatistics • September 1984
CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net ChangeA
Millions of dollars
1983
Holder, and type of credit
1980
1981
1984
1982
Dec.
Jan.
Feb.
Mar.
Apr.
May
July
June
Amounts outstanding (end of period)
1 Total
314,910
335,691
355,849
396,082
394,922
399,177
402,466
407,671
418,080
427,565
435,367
By major holder
Commercial banks
Finance companies . . . .
Credit unions
Retailers 2
Savings and loans
Gasoline companies . . .
Mutual savings banks..
147,013
76,756
44,041
28,697
9,911
4,468
4,024
147,622
89,818
45,953
31,348
12,410
4,403
4,137
152,490
98,693
47,253
32,735
15,823
4,063
4,792
171,978
102,862
53,471
35,911
21,615
4,131
6,114
171,934
101,680
53,882
34,505
21,823
4,300
6,798
175,941
101,702
54,851
33,455
22,269
4,025
6,934
177,625
101,619
55,892
33,208
23,071
3,944
7,107
181,022
101,119
56,962
33,327
23,957
3,955
7,329
186,668
102,967
58,517
33,730
24,915
4,020
7,263
191,519
104,460
59,893
34,206
25,837
4,289
7,361
195,265
106,219
61,151
34,022
26,767
4,472
7,471
By major type of credit
9 Automobile
10 Commercial banks...
11
Indirect paper
12
Direct loans
13 Credit unions
14 Finance companies ..
116,838
61,536
35,233
26,303
21,060
34,242
125,331
58,081
34,375
23,706
21,975
45,275
131,086
59,555
34,755
23,472
22,596
48,935
142,449
67,557
3
143,186
68,747
3
146,047
71,327
3
146,047
71,237
3
147,944
73,016
3
152,225
75,787
3
155,937
78,018
3
159,649
80,103
3
25,574
49,318
25,771
48,668
26,234
48,486
26,732
48,078
27,244
47,684
27,988
48,450
28,646
49,273
29,248
50,298
15 Revolving
16 Commercial banks...
17 Retailers
18 Gasoline companies .
58,506
29,765
24,273
4,468
64,500
32,880
27,217
4,403
69,998
36,666
29,269
4,063
80,823
44,184
32,508
4,131
78,566
43,118
31,148
4,300
77,671
43,506
30,140
4,025
79,110
45,235
29,931
3,944
80,184
46,149
30,080
3,955
82,436
47,936
30,480
4,020
84,598
49,374
30,935
4,289
85,588
50,358
30,758
4,472
19 Mobile home
20
Commercial banks...
21
Finance companies ..
22
Savings and loans . . .
23 Credit unions
17,321
10,371
3,745
2,737
469
17,958
10,187
4,494
2,788
489
22,254
9,605
9,003
3,143
503
23,680
9,842
9,365
3,906
567
23,668
9,829
9,345
3,923
571
23,571
9,663
9,324
4,003
581
23,661
9,589
9,333
4,147
592
23,850
9,580
9,361
4,306
603
24,104
9,573
9,434
4,478
619
24,427
9,621
9,528
4,644
634
24,751
9,681
9,612
4,811
647
24 Other
25 Commercial b a n k s . . .
26 Finance companies ..
27 Credit unions
28
Retailers
29
Savings and loans . . .
30 Mutual savings banks
122,244
45,341
38,769
22,512
4,424
7,174
4,024
127,903
46,474
40,049
23,490
4,131
9,622
4,137
132,511
46,664
40,755
24,154
3,466
12,680
4,792
149,130
50,395
44,179
27,330
3,403
17,709
6,114
149,502
50,240
43,667
27,540
3,357
17,900
6,798
151,888
51,445
43,892
28,036
3,315
18,266
6,934
153,648
51,564
44,208
28,568
3,277
18,924
7,107
155,693
52,277
44,074
29,115
3,247
19,651
7,329
159,315
53,372
45,083
29,910
3,250
20,437
7,263
162,603
54,506
45,659
30,613
3,271
21,193
7,361
165,379
55,123
46,309
31,256
3,264
21,956
7,471
2
3
4
5
6
7
8
(3)
()
(3)
()
(3)
()
(3)
()
(3)
()
(3)
()
()
(3)
(3)
()
Net change (during period) 4
31 Total
1,448
18,217
13,096
5,782
4,469
6,608
5,870
6,408
10,233
7,825
7,106
By major holder
Commercial banks
Finance companies . . . .
Credit unions
Retailers 2
Savings and loans
Gasoline companies . . .
Mutual savings banks ..
-7,163
8,438
-2,475
329
1,485
739
95
607
13,062
1,913
1,103
1,682
-65
-85
4,442
4,504
1,298
651
2,290
-340
251
3,977
-146
731
537
589
-31
126
2,029
-66
916
422
364
72
731
4,914
258
712
325
414
-172
156
3,422
-193
1,230
355
813
2
242
4,025
-350
1,529
278
868
2
66
6,065
1,304
1,453
476
979
46
-90
3,835
1,353
962
471
1,069
89
46
3,192
1,402
1,566
-101
847
-40
240
By major type of credit
39 Automobile
40
Commercial b a n k s . . .
41
Indirect paper
42
Direct loans
43 Credit unions
44
Finance companies ..
477
-5,830
-3,104
-2,726
-1,184
7,491
8,495
-3,455
-858
-2,597
914
11,033
4,898
-9
225
-234
622
3,505
1,468
1,568
3
2,106
1,722
3
2,799
2,635
3
326
432
3
2,158
1,766
3
3,689
2,807
3
2,897
1,907
3
3,422
1,852
3
349
-449
428
-44
276
-112
660
-766
734
-342
187
461
529
750
820
45 Revolving
46 Commercial banks...
47
Retailers
48
Gasoline companies .
1,415
-97
773
739
4,467
3,115
1,417
-65
4,365
3,808
897
-340
1,690
1,207
515
-31
505
18
414
72
1,273
1,127
318
-172
2,962
2,613
347
2
1,868
1,568
298
2
2,817
2,298
473
46
1,569
1,047
433
89
640
764
-84
-40
49 Mobile home
50 Commercial banks...
51
Finance companies ..
52
Savings and loans . . .
53
Credit unions
483
-276
355
430
-25
1,049
-186
749
466
20
609
-508
471
633
14
1
39
-166
120
9
-92
-15
-104
18
9
-127
-112
-93
68
10
285
-85
218
141
10
285
27
110
132
16
302
-50
156
183
13
454
10
258
174
12
462
31
185
230
16
54 Other
55
Commercial banks...
56
Finance companies ..
57 Credit unions
58 Retailers
59 Savings and loans . . .
60
Mutual savings banks
-927
-960
592
-1,266
-444
1,056
95
4,206
1,133
1,280
975
-314
1,217
-85
3,224
372
528
662
-246
1,657
251
2,623
1,163
469
374
22
469
126
1,950
304
82
479
8
346
731
2,662
1,264
463
426
7
346
156
2,298
463
355
558
8
673
242
2,097
653
-118
780
-20
735
66
3,425
1,010
961
745
3
796
-90
2,905
871
566
489
38
895
46
2,582
545
397
800
-17
617
240
32
33
34
35
36
37
38
A These data have been revised from July 1979 through February 1984.
1. The Board's series cover most short- and intermediate-term credit extended
to individuals through regular business channels, usually to finance the purchase
of consumer goods and services or to refinance debts incurred for such purposes,
and scheduled to be repaid (or with the option of repayment) in two or more
installments.
2. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
3. Not reported after December 1982.
(3)
()
(3)
()
()
(3)
()
(3)
(3)
()
()
(3)
695
(3)
()
()
(3)
4. For 1982 and earlier, net change equals extensions, seasonally adjusted less
liquidations, seasonally adjusted. Beginning 1983, net change equals outstandings,
seasonally adjusted less outstandings of the previous period, seasonally adjusted.
NOTE. Total consumer noninstallment credit outstanding—credit scheduled to
be repaid in a lump sum, including single-payment loans, charge accounts, and
service credit—amounted to, not seasonally adjusted, $80.7 billion at the end of
1981, $85.9 billion at the end of 1982, and $96.9 billion at the end of 1983.
These data also appear in the Board's G.19 (421) release. For address, see
inside front cover.
Consumer Debt
1.56
A39
TERMS OF CONSUMER INSTALLMENT CREDIT
Percent unless noted otherwise
1984
1983
Item
Feb.
Mar.
Apr.
May
June
July
Aug.
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
16.54
18.09
17.45
17.78
16.83
18.65
18.05
18.51
13.92
16.68
15.91
18.73
13.32
16.16
15.45
18.73
16.17
20.00
16.15
20.75
12.58
18.74
14.11
17.59
14.05
17.52
14.06
17.59
14.17
17.60
14.33
17.64
14.68
17.77
45.4
35.8
46.0
34.0
45.9
37.9
46.4
39.4
46.7
39.4
47.1
39.5
47.7
39.7
48.2
39.8
48.6
39.8
91.8
86.1
85.3
90.3
86.0
92.0
92
92
92
7,339
4,343
8,178
4,746
8,787
5,033
9,072
5,418
9,139
5,474
9,190
5,547
9,262
5,675
9,311
5,774
13.53
16.35
15.54
18.71
14.08
16.75
15.72
18.81
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.
9,377
5,763
NOTE. These data also appear in the Board's G.19 (421) release. For address,
see inside front cover,
A40
1.57
DomesticNonfinancialStatistics • September 1984
F U N D S RAISED IN U.S. CREDIT M A R K E T S
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1981'
Transaction category, sector
1978'
1979'
1980'
1981'
1982'
1983'
1984
1982'
H2
HI
H2
HI
H2
HI
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors . . . .
By sector and instrument
2 U.S. government
3 Treasury securities
4
Agency issues and mortgages
369.8
386.0
344.6
380.4
404.1
526.4
368.0
358.1
450.1
448.9
563.8
673.9
53.7
55.1
-1.4
37.4
38.8
-1.4
79.2
79.8
-.6
87.4
87.8
-.5
161.3
162.1
-.9
186.6
186.7
-.1
88.1
88.5
-.4
104.1
105.5
-1.4
218.4
218.8
-.4
222.0
222.1
-.1
151.1
151.2
-.1
173.0
173.2
-.2
5 Private domestic nonfinancial sectors
Debt capital instruments
6
7
Tax-exempt obligations
Corporate bonds
8
Mortgages
9
10
Home mortgages
11
Multifamily residential
12
Commercial
13
Farm
316.2
199.7
28.4
21.1
150.2
112.2
9.2
21.7
7.2
348.6
211.2
30.3
17.3
163.6
120.0
7.8
23.9
11.8
265.4
192.0
30.3
26.7
135.1
96.7
8.8
20.2
9.3
293.1
159.1
22.7
21.8
114.6
76.0
4.3
24.6
9.7
242.8
158.9
53.8
18.7
86.5
52.5
5.5
23.6
5.0
339.8
239.3
56.3
15.7
167.3
108.7
8.4
47.3
2.9
279.9
140.3
24.7
16.8
98.8
62.3
3.8
22.9
9.8
254.0
140.7
43.9
12.0
84.8
53.6
5.1
19.7
6.5
231.7
177.2
63.7
25.3
88.2
51.3
5.8
27.5
3.5
266.9
214.4
62.8
23.0
128.6
83.8
2.8
40.3
1.6
412.7
264.2
49.7
8.4
206.0
133.6
13.9
54.3
4.1
500.9
265.1
35.2
24.0
205.8
139.2
16.8
47.7
2.1
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
116.5
48.8
37.4
5.2
25.1
137.5
45.4
51.2
11.1
29.7
73.4
6.3
36.7
5.7
24.8
134.0
26.7
54.7
19.2
33.4
83.9
21.0
55.5
-4.1
11.5
100.5
51.3
27.3
-1.2
23.1
139.6
21.9
65.1
24.1
28.6
113.2
20.6
69.0
10.0
13.6
54.6
21.4
42.0
-18.2
9.4
52.5
35.9
13.3
-10.6
13.9
148.5
66.6
41.2
8.3
32.3
235.9
104.3
79.6
27.4
24.6
19
20
21
22
23
24
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
316.2
16.5
172.0
14.6
32.4
80.6
348.6
17.6
179.3
21.4
34.4
96.0
265.4
17.2
122.1
14.4
33.7
78.1
293.1
6.2
127.5
16.3
40.2
102.9
242.8
31.3
94.5
7.6
39.5
70.0
339.8
36.7
175.4
4.3
63.9
59.5
279.9
7.3
113.1
12.2
38.7
108.7
254.0
24.1
94.7
9.6
36.6
89.0
231.7
38.5
94.3
5.6
42.3
51.0
266.9
41.9
134.8
.8
50.1
39.3
412.7
31.6
216.0
7.9
77.6
79.6
500.9
16.6
253.0
-.8
73.5
158.7
25 Foreign net borrowing in United States
26 Bonds
27 Bank loans n.e.c
28 Open market paper
29
U.S. government loans
33.8
4.2
19.1
6.6
3.9
20.2
3.9
2.3
11.2
2.9
27.2
.8
11.5
10.1
4.7
27.2
5.4
3.7
13.9
4.2
15.7
6.7
-6.2
10.7
4.5
18.9
3.8
4.9
6.0
4.3
24.4
7.6
6.2
7.1
3.5
10.2
2.4
-7.6
12.5
3.0
21.2
11.0
-4.7
9.0
6.0
15.3
4.6
11.3
-4.6
3.9
22.5
2.9
-1.5
16.5
4.6
22.1
2.0
-5.8
20.1
5.9
403.6
406.2
371.8
407.6
419.8
545.3
392.4
368.3
471.4
504.2
586.3
696.0
30 Total domestic plus foreign
Financial sectors
31 Total net borrowing by financial sectors
By instrument
32 U.S. government related
33
Sponsored credit agency securities
34
Mortgage pool securities
35 Loans from U.S. government
36 Private financial sectors
37 Corporate bonds
38 Mortgages
39 Bank loans n.e.c
40
Open market paper
41
Loans from Federal Home Loan Banks
By sector
42 Sponsored credit agencies
43 Mortgage pools
44 Private financial sectors
45
Commercial banks
46 Bank affiliates
47
Savings and loan associations
48
Finance companies
49 REITs
74.1
82.4
62.9
84.1
69.0
90.7
83.9
84.2
53.8
74.0
107.3
116.3
37.1
23.1
13.6
.4
37.0
7.5
.1
2.3
14.6
12.5
47.9
24.3
23.1
.6
34.5
7.8
47.4
30.5
15.0
1.9
36.7
-.8
-.5
.9
20.9
16.2
64.9
14.9
49.5
.4
4.1
2.5
.1
1.9
-1.2
.8
67.8
1.4
66.4
60.0
22.4
36.8
g
24.2
-2.5
.1
3.2
12.3
11.1
66.2
-4.1
70.3
69.4
6.9
62.5
69.4
31.1
38.3
-16.0
7.6
.1
.6
-14.7
-9.5
7.8
15.2
38.0
18.9
46.9
10.2
-.2
13.0
-7.0
50.9
33.2
15.3
2.4
33.0
-1.2
-.2
-.1
19.5
15.1
69.7
7.5
62.2
-.5
18.0
9.2
44.8
24.4
19.2
1.2
18.1
7.1
-.1
-.9
4.8
7.1
-2.5
7.2
-12.1
2.2
18.8
-2.0
-4.3
25.3
15.7
23.5
13.6
37.0
1.3
7.2
13.5
17.6
-1.4
24.8
23.1
34.5
1.6
6.5
12.6
16.5
-1.3
25.6
19.2
18.1
.5
6.9
7.4
5.8
-2.2
32.4
15.0
36.7
.4
8.3
15.5
12.8
.2
15.3
49.5
4.1
1.2
1.9
2.5
-.9
.1
1.4
66.4
22.9
.5
8.6
-2.7
17.0
.2
35.6
15.3
33.0
.5
9.7
13.7
9.4
.2
23.2
36.8
24.2
.7
9.7
14.3
-4.1
70.3
7.8
.8
6.1
-10.0
11.4
.2
6.9
62.5
38.0
.2
11.1
4.5
22.7
.2
31.1
38.3
46.9
.1
7.5
62.2
-16.0
1.7
-5.8
-9.3
-1.9
.1
20.0
16.6
10.8
.1
452.5
163.5
43.9
11.8
84.8
20.6
64.6
34.8
28.5
525.1
288.3
63.7
43.8
88.2
21.4
37.9
-23.9
5.9
578.2
288.4
62.8
42.8
128.5
35.9
22.1
-8.0
5.7
693.6
220.5
49.7
30.3
206.0
66.6
41.9
43.6
35.0
812.3
242.5
35.2
36.2
205.7
104.3
69.4
72.8
46.2
83.5
36.8
46.8
38.2
2.8
5.7
52.0
28.9
23.1
18.4
2.5
2.2
-37.4
44.8
-82.3
-84.5
2.9
-.7
*
22.9
17.1
*
*
*
All sectors
50 Total net borrowing
51
U.S. government securities
52
State and local obligations
53
Corporate and foreign bonds
54
Mortgages
55
Consumer credit
56
Bank loans n.e.c
57
Open market paper
58
Other loans
477.7
90.5
28.4
32.8
150.2
48.8
58.8
26.4
41.9
488.7
84.8
30.3
29.0
163.5
45.4
52.9
40.3
42.4
434.7
122.9
30.3
34.6
134.9
6.3
47.3
20.6
37.8
491.8
133.0
22.7
26.4
113.9
26.7
59.3
54.0
55.8
488.8
225.9
53.8
27.8
86.5
21.0
51.2
5.4
17.2
635.9
254.4
56.3
36.5
167.2
51.3
32.0
17.8
20.3
476.3
136.7
24.7
23.2
98.5
21.9
71.2
50.7
49.5
External corporate equity funds raised in United States
59 Total new share issues
60
Mutual funds
61 All other
62
Nonfinancial corporations
63
Financial corporations
64
Foreign shares purchased in United States
1.9
-.1
1.9
-.1
2.5
-.5
-3.8
.1
-3.9
-7.8
3.2
.8
22.2
5.2
17.1
12.9
2.1
2.1
-4.1
6.3
-10.4
-11.5
.8
.3
35.3
18.4
16.9
11.4
4.0
1.5
67.8
32.8
34.9
28.3
2.7
4.0
-17.4
5.7
-23.0
-23.8
1.1
-.4
23.3
12.5
10.9
7.0
3.9
-.1
47.2
24.3
22.9
15.8
4.1
3.0
Flow of Funds
1.58
A41
DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates.
1981
Transaction category, or sector
1978
1979
1980
1981
1982
1982
1983
1984
1983
H2
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to savings and loans
Other loans and securities
2
3
4
5
6
HI
H2
HI
H2
HI
369.8
386.0
344.6
380.4
404.1
526.4
368.0
358.1
450.1
488.9
563.8
673.9
102.3
36.1
25.7
12.5
28.0
75.2
-6.3
35.8
9.2
36.5
97.0
15.7
31.7
7.1
42.4
97.7
17.2
23.5
16.2
40.9
109.1
18.0
61.0
.8
29.3
117.1
27.6
76.1
-7.0
20.5
90.3
12.4
25.5
15.1
37.3
100.8
9.7
47.6
11.1
32.4
117.3
26.2
74.4
-9.5
26.2
119.7
40.5
80.1
-12.1
11.1
114.6
14.6
72.0
-2.0
29.9
121.9
32.0
52.0
15.7
22.2
7
8
9
10
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
17.1
40.3
7.0
38.0
19.0
53.0
7.7
-4.6
23.7
45.6
4.5
23.2
24.1
48.2
9.2
16.3
16.0
65.3
9.8
18.1
9.7
69.5
10.9
27.1
19.8
50.1
14.1
6.3
14.8
61.8
3.8
20.4
17.1
68.7
15.7
15.8
9.1
68.2
15.6
26.8
10.3
70.7
6.2
27.4
8.4
72.9
17.2
23.4
11
12
Agency and foreign borrowing not in line 1
Sponsored credit agencies and mortgage pools
Foreign
37.1
33.8
47.9
20.2
44.8
27.2
47.4
27.2
64.9
15.7
67.8
18.9
50.9
24.4
60.0
10.2
69.7
21.2
66.2
15.3
69.4
22.5
69.4
22.1
Private domestic funds advanced
13 Total net advances
14 U.S. government securities
15 State and local obligations
16 Corporate and foreign bonds
17 Residential mortgages
18 Other mortgages and loans
19 LESS: Federal Home Loan Bank advances
338.4
54.3
28.4
23.4
95.6
149.3
12.5
379.0
91.1
30.3
18.5
91.9
156.3
9.2
319.6
107.2
30.3
19.3
73.7
96.2
7.1
357.3
115.8
22.7
18.8
56.7
159.5
16.2
375.6
207.9
53.8
14.8
-3.2
103.2
.8
495.9
226.9
56.3
14.6
40.9
150.2
-7.0
353.0
124.3
24.7
15.9
40.6
162.7
15.1
327.5
153.7
43.9
-.1
11.0
130.2
11.1
423.8
262.0
63.7
29.6
-17.4
76.3
-9.5
450.8
247.8
62.8
22.9
6.4
98.7
-12.1
541.1
205.9
49.7
6.3
75.5
201.7
-2.0
643.6
210.5
35.2
21.5
103.8
288.2
15.7
Private financial intermediation
20 Credit market funds advanced by private financial
institutions
21
Commercial banking
22
Savings institutions
23
Insurance and pension funds
24
Other finance
315.7
128.5
72.3
89.5
25.5
313.9
123.1
56.5
85.9
48.5
281.5
100.6
54.5
94.3
32.1
323.4
102.3
27.8
97.4
96.0
285.6
107.2
31.3
108.8
38.3
377.1
136.1
136.8
99.2
5.0
323.2
112.7
18.4
101.4
90.8
274.4
99.9
25.2
111.4
37.9
296.7
114.5
37.4
106.3
38.6
323.2
121.6
128.9
89.5
-16.8
430.9
150.6
144.6
108.9
26.8
505.6
171.7
155.9
108.5
69.6
25 Sources of funds
26 Private domestic deposits and RPs
27 Credit market borrowing
315.7
142.7
37.0
313.9
137.4
34.5
281.5
169.6
18.1
323.4
211.9
36.7
285.6
174.7
4.1
377.1
203.2
22.9
323.2
217.9
33.0
274.4
147.6
24.2
296.7
201.9
-16.0
323.2
192.7
7.8
430.9
213.7
38.0
505.6
281.0
46.9
28
29
30
31
32
136.1
6.5
6.8
74.9
47.9
142.0
27.6
.4
72.8
41.2
93.9
-21.7
-2.6
83.9
34.2
74.8
-8.7
-1.1
90.4
-5.9
106.7
-26.7
6.1
104.6
22.8
151.0
22.1
-5.3
98.4
35.8
72.3
-9.8
-10.2
101.0
-8.7
102.6
-28.3
-2.0
111.4
21.5
110.8
-25.1
14.1
97.8
24.1
122.8
-14.2
10.1
87.7
39.1
179.2
58.5
-20.8
109.1
32.4
177.7
6.6
5.3
108.1
57.7
Private domestic nonfinancial investors
33 Direct lending in credit markets
34
U.S. government securities
35
State and local obligations
36 Corporate and foreign bonds
37
Open market paper
38 Other
59.6
33.5
3.6
-6.3
8.3
20.5
99.6
52.5
9.9
-1.4
8.6
30.0
56.1
24.6
7.0
-5.7
-3.1
33.3
70.6
29.3
10.5
-8.1
2.7
36.3
94.2
37.4
34.4
-5.2
-.1
27.8
141.7
88.9
42.6
1.2
3.9
5.0
62.8
24.5
12.5
-10.7
8.2
28.4
77.3
35.3
30.1
-17.7
3.5
26.2
111.0
39.5
38.7
7.3
-3.7
29.3
135.3
95.9
52.7
-1.7
-8.1
-3.4
148.1
82.0
32.6
4.1
15.9
13.5
184.9
132.2
21.9
7.3
1.9
21.6
39 Deposits and currency
40
Currency
41
Checkable deposits
42
Small time and savings accounts
43
Money market fund shares
44
Large time deposits
45
Security RPs
46
Deposits in foreign countries
153.9
9.3
16.2
65.9
6.9
46.3
7.5
2.0
146.8
8.0
18.3
59.3
34.4
18.8
6.6
1.5
181.1
10.3
5.2
82.9
29.2
45.8
6.5
1.1
221.9
9.5
18.0
47.0
107.5
36.9
2.5
.5
181.9
9.7
15.7
138.2
24.7
-7.7
3.8
-2.5
222.4
14.3
21.4
219.1
-44.1
-7.5
14.3
4.8
229.3
11.2
13.3
71.8
110.8
24.6
-2.6
.2
152.1
6.7
1.9
83.2
39.4
21.9
1.1
-2.2
211.7
12.7
29.5
193.1
10.0
-37.3
6.6
-2.9
214.5
14.8
48.0
278.6
-84.0
-61.0
11.0
7.0
230.2
13.8
-5.2
159.7
-4.2
45.9
17.5
2.7
301.2
17.6
27.4
110.0
30.2
92.1
21.3
2.6
47 Total of credit market instruments, deposits and
currency
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
213.6
246.5
237.2
292.5
276.1
364.1
292.1
229.4
322.7
349.8
378.4
486.1
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
25.3
93.3
44.6
18.5
82.8
23.0
26.1
88.1
1.5
24.0
90.5
7.6
26.0
76.0
-8.6
21.5
76.0
49.2
23.0
91.6
-3.5
27.4
83.8
-7.9
24.9
70.0
-9.3
23.7
71.7
12.6
19.5
79.6
85.9
17.5
78.6
30.0
MEMO: Corporate equities not included above
51 Total net issues
52 Mutual fund shares
Other equities
53
1.9
-.1
1.9
-3.8
.1
-3.9
22.2
5.2
17.1
-4.1
6.3
-10.4
35.3
18.4
16.9
67.8
32.8
34.9
-17.4
5.7
-23.0
23.3
12.5
10.9
47.2
24.3
22.9
83.5
36.8
46.8
52.0
28.9
23.1
-37.4
44.8
-82.3
4.7
-2.8
12.9
-16.7
24.9
-2.7
20.1
-24.2
39.2
-3.9
58.4
9.4
22.6
-40.0
11.0
12.3
67.3
-20.1
78.2
5.3
38.5
13.5
24.3
-61.7
48
49
50
54 Acquisitions by financial institutions
55 Other net purchases
NOTES BY LINE NUMBER.
1.
2.
6.
11.
13.
18.
26.
27.
29.
30.
31.
Line 1 of table 1.58.
Sum of lines 3-6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
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.
Demand deposits at commercial banks.
Excludes net investment of these reserves in corporate equities.
32. Mainly retained earnings and net miscellaneous liabilities.
33. Line 12 less line 20 plus line 27.
34-38. Lines 14-18 less amounts acquired by private finance. Line 38 includes
mortgages.
40. Mainly an offset to 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.
A42
2.10
Domestic Nonfinancial Statistics • September 1984
NONFINANCIAL BUSINESS ACTIVITY Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1983
Measure
1982
1981
1984
1983
Jan.
Dec.
Feb.
Mar.
Apr.
May
June'
July'
Aug.
1 Industrial production
151.0
138.6
147.6
156.2
158.5
160.0
160.8
162.1
162.8'
164.3
165.8
166.2
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
150.6
149.5
147.9
151.5
154.4
151.6
141.8
141.5
142.6
139.8
143.3
133.7
149.2
147.1
151.7
140.8
156.6
145.2
157.4
155.2
157.7
151.8
165.4
154.5
159.7
157.5
159.5
154.9
167.8
156.6
160.4
158.0
159.4
156.1
169.0
159.4
161.1
158.6
160.2
156.4
170.2
160.4
162.5
160.2
161.4
158.5
171.0
161.5
163.3
161.1
161.7
160.3'
162.0'
165.1
163.0
162.7
163.3
173.1
163.0
166.6
164.7
163.9
165.8
173.7
164.4
167.0
165.0
163.2
167.4
174.2
164.9
150.4
137.6
148.2
156.8
159.5
161.4
162.1
163.4
164.2'
165.6
167.3
167.6
79.4
80.7
71.1
70.1
75.2
75.2
78.9
79.6
80.1
80.6
80.9
81.9
81.0
82.2
81.5
82.5
81.7'
82.7'
82.1
83.0
82.8
83.5
82.8
83.6
2
3
4
5
6
7
Industry groupings
8 Manufacturing
Capacity utilization (percent) 1
9
Manufacturing
10 Industrial materials industries
11 Construction contracts (1977 = 100)2
111.0
111.0
138.0
134.0
150.0
150.0
144.0
145.0
165.0
148.0
152.0
n.a.
12
13
14
15
16
17
18
19
20
21
Nonagricultural employment, total 3
Goods-producing, total
Manufacturing, total
Manufacturing, production-worker . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income 4
Retail sales 5
138.5
109.4
103.7
98.0
154.4
386.5
349.7
287.3
372.6
330.6
136.2
102.6
96.9
89.4
154.6
410.3
367.4
285.5
398.0
326.0
136.8
101.5
96.0
88.7
156.1
435.6
388.6
294.7
427.1
373.0
139.9
103.8
98.4
91.9
159.6
454.0
404.7
310.4
446.9
391.4
140.4
104.6
99.0
92.5
160.0
459.9
409.3
314.0
453.0
407.3
141.1
105.4
99.6
93.1
160.7
464.0
411.0
317.1
457.1
403.0
141.4
105.5
100.1
93.6
161.1
466.8
413.3
318.8
459.9
396.9
142.0
106.2
100.4
94.0
161.6
471.3
418.1
322.0
464.0'
410.8
142.5
106.6
100.6
94.1
162.2
473.1
419.0
321.8
464.9'
413.6
143.1
107.1
100.9
94.3
162.8
476.6
422.4
323.3
468.4
417.7
143.4
107.6
101.4
94.7
163.0
480.5
425.2
325.1
472.1
409.4
143.6
107.7
101.5
94.9
163.3
1
n.a.
1
t
405.9
22
23
Prices 6
Consumer
Producer finished goods
272.4
269.8
289.1
280.7
298.4
285.2
303.5
287.2
305.2
289.5
306.6
290.6
307.3
291.7
308.8
291.4
309.7
291.5
310.7
291.2
311.7
292.6
n.a.
n.a.
1. 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.
2. Index of dollar value of total construction contracts, including residential,
nonresidential and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
3. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
4. Based on data in Survey of Current Business (U.S. Department of Commerce).
2.11
5. Based on Bureau of Census data published in Survey of Current Business.
6. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5, and 6,
and indexes for series mentioned in notes 3 and 7 may also be found in the Survey
of Current Business.
Figures for industrial production for the last two months are preliminary and
estimated, respectively.
OUTPUT, CAPACITY, AND CAPACITY UTILIZATION
Seasonally adjusted
1984
1983
Q4
Q3
Q1
1983
Q2'
Output (1967 = 100)
Q3
1984
Q4
Q1
1983
Q2
Capacity (percent of 1967 output)
1984
Q4
Q3
Q1
Q2'
Utilization rate (percent)
1
2
3
Total industry
Mining
Utilities
151.8
155.5
159.8
163.1
196.4
197.3
198.4
199.7
77.3
78.8
80.5
81.6
116.1
178.2
121.0
178.4
124.2
179.2
125.0
183.1
165.4
211.1
165.5
212.4
165.7
213.8
165.9
215.3
70.2
84.4
73.1
84.0
75.0
83.8
75.4
85.0
4
5
6
Manufacturing
Primary processing
Advanced processing
152.8
156.5
161.0
164.4
197.5
198.4
199.5
201.0
77.4
78.9
80.7
81.8
152.8
152.8
156.4
156.1
160.5
161.7
162.3
165.2
195.3
198.6
195.8
199.7
196.5
201.1'
197.2
203.0
78.3
76.9
79.9
78.2
81.7
80.3
82.3
81.4
7
Materials
149.9
154.3
158.8
162.2
193.4
194.0
194.7
195.9
77.5
79.6
81.6
82.7
8
9
10
11
12
13
Durable goods
Metal materials
Nondurable goods
Textile, paper, and chemical
Paper
Chemical
144.2
89.3
179.1
188.0
162.8
227.8
150.3
93.8
183.5
193.2
167.4
235.0
157.6
97.3
183.7
193.2
165.8
236.7
162.0
100.3
186.7
196.1
168.5
240.8
196.0
139.8
219.6
231.6
166.9
298.3
196.5
139.6
220.6
232.7
167.7
300.1
197.1
139.1
221.8
234.2
168.5
302.3
198.3
138.5
223.4
236.2
169.5
305.2
73.6
63.9
81.5
81.2
97.5
76.4
76.5
67.2
83.2
83.0
99.8
78.3
79.9
70.0
82.8
82.5
98.4
78.3
81.6
72.4
83.5
83.0
99.4
78.9
14
Energy materials
127.4
127.8
131.2
132.4
154.7
155.3
155.8
156.4
82.3
82.3
84.2
84.6
Labor Market
2.11
A43
Continued
Previous cycle1
Latest cycle 2
1983
1983
Low
Aug.
Dec.
1984
Series
Low
High
High
Jan.
Feb.
Mar.
Apr.
May'
June'
July
Aug.
Capacity utilization rate (percent)
87.3
88.5
86.7
69.6
69.6
79.0
77.3
70.2
85.0
79.0
74.7
85.7
80.1
75.4
84.8
80.7
74.9
82.5
80.9
74.7
84.0
81.3
74.3
85.0
81.5
75.4
84.7
82.1
76.4
85.4
69.0
87.5
68.8
77.3
78.9
80.1
80.9
81.0
81.5
81.7
68.2
69.4
91.4
85.9
66.2
70.0
78.1
76.9
79.2
78.6
80.6
80.0
82.2
80.4
82.2
80.6
82.2
81.0
82.4
81.2
69.3
63.5
68.0
88.9
88.4
95.4
66.6
59.8
46.2
77.4
73.6
64.0
79.6
77.0
66.8
80.6
78.5
67.3
81.9
80.5
71.1
82.2
80.7
71.5
82.5
81.5
73.0
88.4
91.8
94.9
71.1
86.0
82.0
18 Manufacturing
87.9
19
20
93.7
85.5
21 Materials
22
Durable goods
23
Metal materials
92.6
91.4
97.8
24
25
15 Total industry
16 Mining
17 Utilities
Primary processing
Advanced p r o c e s s i n g . . . .
82.6
78.0
84.3
82.6
77.7
84.5
82.1
82.8
82.8
82.3
81.9
82.7
82.9
82.7
82.9
82.7
81.5
72.2
83.0
82.0
72.0
83.5
83.0
73.0
83.6
83.1
71.8
94.4
67.4
91.7
70.7
81.1
81.6
81.9
83.0
83.6
83.2
83.9
83.5
83.5
83.8
26
27
Nondurable goods
Textile, paper, and
chemical
Paper
Chemical
95.1
99.4
95.5
65.4
72.4
64.2
92.3
97.9
91.3
68.6
86.3
64.0
80.5
96.9
75.5
81.2
98.8
76.2
81.5
99.3
76.7
82.8
99.0
78.6
83.1
96.8
79.5
82.7
98.5
78.9
83.3
99.8
79.0
82.9
99.7
78.8
83.1
100.4
78.6
83.5
n.a.
n.a.
28
Energy materials
94.5
84.4
88.9
78.5
82.8
83.6
84.4
84.1
84.1
84.5
84.3
84.9
85.3
85.1
1. Monthly high 1973; monthly low 1975.
2. Monthly highs 1978 through 1980; monthly lows 1982.
2.12
NOTE. These data also appear in the Board's G.3 (402) release. For address, see
inside front cover.
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1984
1981
Category
1982
1983
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
176,414
177,733
177,882
178,033
178,185
178,337
178,501
178,669
178,821
114,896
112,693
115,121
112,912
115,461
113,245
116,017
113,803
116,094
113,877
116,167
113,938
115,732
113,494
HOUSEHOLD SURVEY DATA
1 Noninstitutional population 1
172,272
2 Labor force (including Armed Forces)
3 Civilian labor force
2
4
5
1
Nonagricultural industries
Agriculture
Unemployment
Number
7
Rate (percent of civilian labor force) . . .
8 Not in labor force
ft
174,450
110,812
108,670
112,383
110,204
113,749
111,550
114,415
112,215
97,030
3,368
96,125
3,401
97,450
3,383
99,918
3,271
100,496
3,395
100,859
3,281
101,009
3,393
101,899
3,389
102,344
3,403
102,050
3,345
101,744
3,224
8,273
7.6
61,460
10,678
9.7
62,067
10,717
9.6
62,665
9,026
8.0
63,318
8,801
7.8
62,986
8,772
7.8
62,912
8,843
7.8
62,724
8,514
7.5
62,320
8,130
7.1
62,407
8,543
7.5
62,502
8,526
7.5
63,089
91,156
89,596
89,986
92,391
92,846
93,058
93,449
93,768
94,076
94,378
94,510
20,170
1,132
4,176
5,157
20,551
5,301
20,547
16,024
18,853
1,143
3,911
5,081
20,401
5,340
19,064
15,803
18,678
1,021
3,949
4,943
20,508
5,456
19,685
15,747
19,254
975
4,154
5,095
21,320
5,573
20,162
15,858
19,373
978
4,226
5,105
21,418
5,593
20,278
15,875
19,466
978
4,151
5,112
21,493
5,613
20,378
15,873
19,530
984
4,246
5,129
21,568
5,640
20,449
15,903
19,570
995
4,286
5,144
21,658
5,662
20,549
15,904
19,639
1,002
4,348
5,151
21,735
5,676
20,652
15,873
19,744
1,002
4,380
5,179
21,775
5,677
20,692
15,931
19,740
1,015
4,357
5,182
21,857
5,692
20,732
15,935
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment 3
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1983
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A44
2.13
Domestic Nonfinancial Statistics • September 1984
INDUSTRIAL PRODUCTION Indexes and Gross Value
Monthly data are seasonally adjusted
1983
Grouping
portion
avg.
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May'
June
July
Index (1967 = 100)
MAJOR MARKET
1 Total index
100.00
147.6
151.8
153.8
155.0
155.3
156.2
158.5
160.0
160.8
162.1
162.8
164.3
165.8
60.71
47.82
27.68
20.14
12.89
39.29
149.2
147.1
151.7
140.8
156.6
145.2
153.2
150.7
156.3
143.1
162.2
149.7
154.9
152.1
157.4
144.9
165.3
152.3
155.6
152.7
156.9
147.0
166.5
154.0
155.8
153.2
156.1
149.1
165.5
154.5
157.4
155.2
157.7
151.8
165.4
154.5
159.7
157.5
159.5
154.9
167.8
156.6
160.4
158.0
159.4
156.1
169.0
159.4
161.1
158.6
160.2
156.4
170.2
160.4
162.5
160.2
161.4
158.5
171.0
161.5
163.3
161.1
161.7
160.3
171.6
162.0
165.1
163.0
162.7
163.3
173.1
163.0
166.6
164.7
163.9
165.8
173.7
164.4
7.89
2.83
2.03
1.90
.80
5.06
1.40
1.33
1.07
2.59
147.5
158.2
134.0
117.4
219.6
141.4
116.4
120.1
178.1
139.9
154.2
168.1
147.0
132.0
221.8
146.4
121.2
125.0
187.5
143.2
157.4
172.9
153.1
135.0
223.1
148.7
125.2
129.7
186.3
145.9
156.7
171.3
149.2
129.6
227.4
148.4
129.2
133.3
185.5
143.6
155.9
171.5
149.2
129.4
228.2
147.2
127.0
131.3
182.7
143.4
158.6
178.4
157.8
137.4
230.7
147.5
126.3
130.2
184.0
143.9
163.4
184.5
163.3
140.7
238.4
151.5
136.4
140.0
183.1
146.7
162.5
182.1
162.2
140.4
232.6
151.5
135.1
138.6
178.7
149.1
163.1
184.1
164.1
142.4
234.7
151.3
134.4
138.0
180.2
148.5
162.2
180.9
158.4
134.5
238.0
151.7
136.1
138.8
181.0
148.0
161.4
179.8
155.9
132.9
240.6
151.1
134.0
136.7
179.6
148.6
163.3
184.1
158.7
136.2
248.6
151.6
133.5
136.6
179.4
150.0
164.8
184.9
162.4
138.7
241.9
153.6
139.8
143.6
179.6
150.3
18 Nondurable consumer goods
19 Clothing
Consumer staples
20
71
22
Nonfood staples
23
Consumer chemical products . . . .
24
Consumer paper products
25
Consumer energy products
26
19.79
4.29
15.50
8.33
7.17
2.63
1.92
2.62
1.45
153.4
157.1
157.5
157.1
156.1
157.3
157.9
158.2
159.1
161.1
161.8
162.5
163.6
163.7
153.5
175.4
231.0
132.7
150.9
173.4
168.0
156.3
181.6
239.7
137.4
155.7
179.9
168.0
154.9
183.2
241.5
138.2
157.7
182.8
167.2
156.0
180.3
238.7
137.6
153.0
174.5
165.4
154.5
178.1
232.4
136.6
154.1
175.8
166.0
155.4
178.3
229.9
137.2
156.5
185.2
166.5
156.5
178.2
231.6
138.8
153.4
180.0
166.9
156.8
178.7
231.9
140.3
153.3
172.8
168.0
157.6
180.1
231.3
141.8
156.8
177.7
170.2
160 4
181.6
233.4
144.0
157.1
177.4
171.6
161 0
183.9
235.9
145.6
159.8
181.1
172.9
161 9
185.7
240.5
147.1
159.0
182.4
173.8
Equipment
27 Business
28
Industrial
29
Building and mining
30
Manufacturing
31
Power
12.63
6.77
1.44
3.85
1.47
153.3
120.4
159.3
107.1
117.1
156.6
124.3
159.2
113.3
119.0
158.8
125.6
160.8
115.0
118.8
161.3
126.6
166.9
114.6
118.5
164.1
128.6
175.8
114.3
119.4
167.3
130.8
185.3
115.1
118.4
170.7
133.7
185.1
119.7
120.0
171.9
134.6
182.0
120.9
123.8
172.1
134.8
175.2
124.2
122.7
173.5
135.9
173.6
126.2
124.1
176.5
138.5
182.9
127.4
124.1
180.8
140.2
185.8
128.4
126.1
184.1
141.8
189.0
129.7
127.3
5.86
3.26
1.93
.67
191.3
273.2
95.2
69.5
194.0
277.4
95.9
70.8
196.7
281.2
97.6
71.0
201.3
288.1
100.0
70.9
205.1
292.5
103.2
73.5
209.6
298.9
106.0
73.5
213.3
303.2
110.1
73.6
215.1
305.9
110.1
75.7
215.3
306.9
109.2
75.0
217.0
309.6
108.9
78.0
220.5
315.5
109.7
77.1
227.7
325.8
114.0
78.0
232.9
331.7
118.6
81.4
36 Defense and space
7.51
119.9
120.2
121.8
122.9
124.0
125.7
128.3
129.5
130.1
133.2
133.1
134.0
135.1
Intermediate products
37 Construction supplies
38 Business supplies
39
Commercial energy products
6.42
6.47
1.14
142.5
170.7
184.3
149.0
175.3
186.9
151.1
179.3
190.2
152.3
180.6
187.0
151.6
179.4
187.6
151.5
179.3
188.0
155.5
180.1
192.1
156.6
181.3
191.6
159.1
181.3
187.0
159.6
182.3
190.0
159.5
183.5
190.8
160.9
185.3
195.3
161.4
186.0
192.2
20.35
4.58
5.44
10.34
5.57
138.6
113.6
176.4
129.9
90.2
144.2
119.9
183.6
134.2
93.1
147.2
123.1
186.0
137.4
94.5
149.4
124.9
188.3
139.8
98.0
150.3
125.0
192.5
139.3
97.1
151.3
127.9
193.4
139.5
96.9
154.6
131.6
198.2
141.8
97.7
158.6
133.1
204.0
146.0
103.0
159.5
133.0
206.7
146.3
103.0
161.3
133.2
210.9
147.7
105.7
161.6
132.6
210.6
148.6
104.5
163.0
134.7
214.0
148.6
104.0
165.2
136.4
219.5
149.4
105.6
2 Products
3 Final products
4
Consumer goods
5
Equipment
6
Intermediate products
7 Materials
Consumer goods
8 Durable consumer goods
9
Automotive products
10
Autos and utility vehicles
11
Autos
12
Auto parts and allied goods
13 Home goods
14
Appliances, A/C, and TV
IS
Appliances and TV
16
Carpeting and furniture
17
Miscellaneous home goods
32
33
34
35
Commercial transit, farm
Commercial
Transit
Farm
Materials
40 Durable goods materials
41
Durable consumer parts
Equipment parts
42
43
Durable materials n.e.c
44
Basic metal materials
45 Nondurable goods materials
46 Textile, paper, and chemical
materials
47
Textile materials
48
Paper materials
49
Chemical materials
Containers, nondurable
50
51
Nondurable materials n.e.c
187.1
245.9
148.6
156.2
10.47
174.5
178.0
183.4
185.3
184.8
180.3
181.2
184.1
185.9
185.7
187.4
187.1
187.6
7.62
1.85
1.62
4.15
1.70
1.14
182.6
116.2
158.2
221.7
167.9
130.5
186.4
121.5
161.8
225.1
170.6
133.0
192.0
123.1
165.4
233.1
179.1
132.6
195.4
124.0
166.3
238.7
175.9
131.9
194.7
121.9
169.8
237.0
176.6
130.6
189.6
121.3
166.0
229.3
173.0
129.5
190.5
119.9
167.0
231.3
173.5
130.5
193.9
119.9
166.8
237.6
173.0
135.2
195.3
120.6
163.5
241.1
176.0
137.7
195.0
118.9
166.7
240.0
175.7
138.6
196.8
121.9
169.2
241.1
176.6
140.5
196.4
119.6
169.5
241.3
176.7
140.7
197.4
122.3
170.8
241.3
175.5
140.2
52 Energy materials
Primary energy
53
54
Converted fuel materials
8.48
4.65
3.82
124.8
114.7
137.0
128.0
113.9
145.2
126.4
112.8
142.8
126.3
114.1
141.2
127.1
115.5
141.1
130.0
117.6
145.1
131.3
119.3
145.8
131.0
121.3
142.8
131.3
119.6
145.4
132.1
119.5
147.3
131.9
119.8
146.5
133.1
119.9
149.1
133.8
122.4
147.7
Supplementary groups
55 Home goods and clothing
56 Energy, total
57
Products
58
Materials
9.35
12.23
3.76
8.48
129.9
135.9
161.0
124.8
133.3
139.4
165.2
128.0
135.2
139.0
167.5
126.4
135.5
137.7
163.3
126.3
135.9
138.5
164.3
127.1
137.6
141.1
166.0
130.0
140.1
141.6
165.1
131.3
140.3
141.4
164.9
131.0
140.1
141.9
166.0
131.3
141.0
142.8
167.1
132.1
139.8
143.3
169.2
131.9
139.4
144.4
170.0
133.1
141.2
144.0
167.1
133.8
NOTE. These data also appear in the Board's G.12.3 (414) release. For address
see inside front cover.
Output
2.13
A45
June
Aug.'
Continued
Grouping
SIC
code
1967
proportion
1984
1983
1983
avg.
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May r
July
Index (1967 = 100)
MAJOR INDUSTRY
12.05
6.36
5.69
3.88
87.95
35.97
51.98
142.9
116.6
172.4
196.0
148.2
168.1
134.5
146.0
116.1
179.3
205.4
152.8
172.9
138.8
146.5
117.1
179.3
204.5
155.1
174.6
141.6
145.8
118.3
176.5
200.7
156.2
175.6
142.8
147.2
121.1
176.3
200.2
156.4
174.8
143.6
151.5
123.7
182.5
208.0
156.8
173.9
145.0
151.4
124.8
181.0
206.8
159.5
175.2
148.6
148.9
124.1
176.5
200.0
161.4
177.2
150.5
150.4
123.8
180.0
204.6
162.1
177.6
151.4
151.3
123.3
182.7
207.7
163.4
179.1
152.6
152.1
125.0
182.3
206.8
164.2
179.9
153.3
154.0
126.8
184.4
209.7
165.6
180.9
154.9
154.4
129.5
182.3
206.5
167.3
181.8
157.3
154.7
129.1
183.3
207.6
167.6
182.2
157.6
10
11.12
13
14
.51
.69
4.40
.75
80.9
136.3
116.6
122.8
80.9
141.2
114.7
125.0
78.7
140.5
116.3
126.5
81.0
142.7
117.3
127.4
84.6
144.8
119.8
132.2
82.3
145.2
123.4
133.9
89.4
151.5
123.1
134.8
97.4
163.2
119.6
133.0
100.0
164.0
118.2
135.8
98.5
151.4
118.8
140.4
98.0
153.9
120.4
144.0
97.1
161.5
121.4
147.1
99.4
176.5
122.3
149.0
172.1
122.3
1 Mining and utilities
Mining
2
3
Utilities
4
Electric
5 Manufacturing
6
Nondurable
7
Durable
8
9
10
11
Mining
Metal
Coal
Oil and gas extraction
Stone and earth minerals
12
13
14
15
16
Nondurable
manufactures
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
20
21
22
23
26
8.75
.67
2.68
3.31
3.21
156.4
112.1
140.8
159.3
117.1
147.4
158.2
112.7
148.7
157.6
109.1
148.7
157.1
109.5
145.8
157.7
112.3
145.0
159.4
116.4
143.9
160.0
110.9
142.3
161.2
111.8
143.5
163.1
113.3
140.0
164.2
112.8
140.5
165.2
117.7
140.7
141.9
164.3
168.6
170.4
171.5
172.1
170.1
172.3
176.6
173.8
172.4
174.1
174.6
175.8
175.7
17
18
19
20
21
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products
Leather and products
27
28
29
30
31
4.72
7.74
1.79
2.24
.86
152.5
215.0
120.3
291.9
61.9
157.8
220.3
123.2
306.9
64.4
161.7
224.1
125.1
310.9
64.2
162.7
228.4
123.6
310.8
64.0
162.0
225.6
125.4
309.1
63.2
161.7
221.1
114.4
314.4
66.0
163.4
221.5
118.8
317.2
61.4
164.8
224.8
127.6
318.5
63.9
165.2
225.0
127.0
323.8
63.9
166.3
228.3
126.8
328.0
63.5
167.5
227.9
127.9
334.1
61.4
168.8
229.0
127.6
341.0
59.7
171.6
231.9
125.4
341.1
61.4
172.5
22
23
24
25
Durable manufactures
Ordnance, private and government
Lumber and products
Furniture and fixtures
Clay, glass, stone products
19.91
24
25
32
3.64
1.64
1.37
2.74
95.4
137.2
170.5
143.4
96.8
141.6
179.0
147.9
98.0
142.3
180.7
151.7
98.8
141.7
181.0
151.9
99.3
141.0
177.5
152.7
99.8
143.8
177.9
153.8
99.7
146.0
183.8
157.8
99.6
145.6
185.6
160.4
100.6
149.3
184.6
160.2
101.4
151.2
186.6
160.0
100.8
146.3
190.5
160.6
101.7
148.5
191.9
159.5
101.4
147.5
193.6
160.7
26
27
28
29
30
Primary metals
Iron and steel
Fabricated metal products
Nonelectrical machinery
Electrical machinery
33
331.2
34
35
36
6.57
4.21
5.93
9.15
8.05
85.4
71.5
120.2
150.6
185.5
87.5
75.1
126.0
157.3
189.2
90.6
78.2
127.4
158.3
195.8
95.3
84.3
26.9
159.2
198.4
92.2
79.2
128.5
161.8
200.1
90.4
74.1
129.2
164.3
201.5
93.2
80.7
131.7
169.5
206.2
98.4
86.0
132.8
170.9
209.9
97.5
84.4
134.9
171.9
212.0
99.3
84.0
135.5
174.9
214.6
98.2
83.5
136.5
178.8
214.5
97.6
83.5
138.7
182.1
216.6
96.9
80.7
139.5
185.7
222.4
140.3
187.7
223.8
37
371
9.27
4.50
117.8
137.1
121.1
144.3
124.7
150.9
125.5
150.9
127.3
152.9
130.8
158.9
134.9
166.3
135.2
164.4
135.8
165.8
134.5
161.9
135.0
163.0
137.2
165.3
140.6
169.1
140.0
167.6
372-9
38
39
4.77
2.11
1.51
99.6
158.7
146.2
99.2
161.6
153.1
100.0
163.6
151.7
101.6
163.0
149.1
103.2
163.0
148.9
104.3
164.6
149.3
105.3
167.8
151.1
107.7
168.6
152.0
107.5
169.7
152.3
108.8
171.0
152.1
108.6
171.8
151.5
110.8
173.7
149.9
113.7
175.9
152.3
114.0
177.3
151.4
31 Transportation equipment
32 Motor vehicles and parts
33 Aerospace and miscellaneous
transportation equipment..
34 Instruments
35 Miscellaneous manufactures
127.6
103.4
94.0
Gross value (billions of 1972 dollars, annual rates)
MAJOR MARKET
36 Products, total
507.4
612.6
626.6
637.0
637.8
638.4
645.4
655.1
656.9
661.8
661.1
665.9
671.3
675.2
674.2
37 Final
38 Consumer goods .
39
Equipment
40 Intermediate
390.9
277.5
113.4
116.6
472.6
328.7
144.0
140.0
481.8
336.7
145.1
144.8
489.9
341.6
148.4
147.1
490.7
340.2
150.5
147.1
490.8
338.3
152.5
147.6
497.8
341.9
155.9
147.6
505.3
345.3
160.0
149.8
505.0
345.3
159.7
151.9
509.6
347.7
161.9
152.2
509.0
347.8
161.2
152.2
514.0
349.5
164.4
151.9
517.9
350.8
167.1
153.4
521.0
349.9
171.1
154.2
519.8
346.8
172.9
154.5
1. 1972 dollar value.
NOTE. These data also appear in the Board's G.12.3 (414) release. For address,
see inside front cover.
A46
2.14
Domestic Nonfinancial Statistics • September 1984
HOUSING AND CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1984
1983
1981
Item
1982
1983
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May'
June'
July
Private residential real estate activity (thousands of units)
N E W UNITS
1 Permits authorized
2
1-family
3 2-or-more-family
986
564
421
1,001
546
454
1,605
902
703
1,650
905
745
1,649
919
730
1,602
913
689
1,799
989
810
1,902
1,083
819
1,727
974
753
1,758
957
801
1,745
913
832
1,768
916
852
1,562
813
749
4 Started
5
1-family
2-or-more-family
6
1,084
705
379
1,062
663
400
1,703
1,068
636
1,672
1,017
655
1,730
1,074
656
1,694
1,021
673
1,980
1,301
679
2,262
1,463
799
1,662
1,071
591
2,015
1,196
819
1,794
1,131
663
1,886
1,092
794
1,761
982
779
682
382
301
720
400
320
1,003
524
479
994
542
452
1,011
543
468
1,020
542
478
1,032
552
480
1,033
557
477
1,065
571
494
1,091'
582'
509'
1,099
591
509
1,116
596
520
1,266
818
447
1,006
631
374
1,391
924
466
1,567
1,028
539
1,445
994
451
1,489
986
503
1,606
1,014
592
1,565
1,034
531
1,590
1,031
559
1,654'
974'
68<y
1,730
1,078
652
1,711
1,027
684
13 Mobile homes shipped
241
240
295
308
313
310
314
293
287
287
295
301
Merchant builder activity in 1-family units
14 Number sold
15 Number for sale, end of period 1
436
278
413
255
622
303
624
301
636
304
755
300
681
302
712
303
682
320
649'
328'
615
333
630
340
68.8
69.3
75.5
75.9
75.9
75.9
76.2
79.2
78.4
79.6
81.6
79.9
80.3
83.1
83.8
89.9
89.5
91.4
91.7
92.2
94.4
97.7
96.2
102.4
97.8
95.6
2,418
1,991
2,719
2,720
2,700
2,850
2,890
2,910
3,020
3,090
3,060
2,960
2,780
66.1
78.0
67.7
80.4
69.8
82.5
69.8
83.0
70.4
83.4
69.9
82.9
71.3
84.8
71.8
84.9
72.2
85.1
72.5
86.1
73.1
86.2
73.8
87.7
74.7
88.6
7 Under construction, end of period 1
1-family
8
9
2-or-more-family
10 Completed
11
1-family
12 2-or-more-family
t
1
1
n.a.
630
342
2
Price (thousands of dollars)
Median
Units sold
Average
17 Units sold
16
EXISTING UNITS ( 1 - f a m i l y )
18 Number sold
Price of units sold (thousands of dollars)2
19 Median
20 Average
Value of new construction 3 (millions of dollars)
CONSTRUCTION
21 Total put in place
239,112 230,068 262,167 267,930 267,017 263,867 280,897
300,355 309,744 305,262
311,037 309,267 311,358
22 Private
23 Residential
24
Nonresidential, total
Buildings
25
Industrial
26
Commercial
27
Other
28
Public utilities and other
185,761 179,090 211,369 219,164 217,444 213,272 229,972
86,564 74,808 111,727 118,605 113,455 109,706 121,931
99,197 104,282 99,642 100,559 103,989 103,566 108,041
248,104 254,958 250,696
137,403 141,087 133,694
110,701 113,871 117,002
255,467 251,628 254,346
133,919 130,947 133,299
121,548 120,681 121,047
29 Public
30 Military
31
Highway
32 Conservation and development
33 Other
17,031
34,243
9,543
38,380
17,346
37,281
10,507
39,148
12,863
35,787
11,660
39,332
10,363
37,441
12,243
40,512
11,632
38,132
12,028
42,197
12,208
37,364
11,854
42,140
12,872
41,057
12,742
41,370
13,969
42,076
12,999
41,657
14,363
45,280
13,190
41,038
13,734
47,501
13,384
42,383
14,969
49,597
13,870
43,112
14,143
49,166
13,481
43,891
14,171
49,904
13,341
43,631
53,346
1,966
13,599
5,300
32,481
50,977
2,205
13,428
5,029
30,315
50,798
2,544
14,225
4,822
29,207
48,766
2,590
14,397
4,041
27,738
49,573
3,064
14,059
3,916
28,534
50,596
2,898
14,666
4,984
28,048
50,925
2,608
14,240
4,319
29,758
52,251
2,474
14,993
4,608
30,176
54,786
2,872
16,205
4,531
31,178
54,566
3,020
16,734
4,516
30,296
55,571
2,847
16,949
4,344
31,431
57,639
2,906
16,865
4,498
33,370
57,013
2,507
17,318
4,475
32,713
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly
comparable with data in prior periods because of changes by the Bureau of the
Census in its estimating techniques. For a description of these changes see
Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
NOTE. Census Bureau estimates for all series except (a) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (b) sales and prices of
existing units, which are published by the National Association of Realtors. All
back and current figures are available from originating agency. Permit authorizations are those reported to the Census Bureau from 16,000 jurisdictions beginning
with 1978.
Prices
2.15
A47
CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Change from 3 months earlier
(at annual rate)
Item
1984
July
Sept.
Dec.
Mar/
Index
level
July
1984
(1967
= 100)1
1984
1984
1983
1983
July
Change from 1 month earlier
June'
May
Apr/
Mar/
June
July
CONSUMER PRICES 2
1
2.4
4.1
4.5
4.0
5.0
3.3
.2
.5
.2
.2
.3
311.7
T
1.2
1.3
2.9
4.1
1.8
3.8
-.4
5.1
4.2
5.6
1.1
3.4
5.9
6.8
5.2
4.3
-1.7
4.9
4.6
5.2
9.0
-1.4
5.1
3.4
5.9
-.7
.8
4.7
3.7
5.4
-.1
-.2
.4
.4
.4
.0
.7
.5
.6
.5
-.3
.2
.3
.2
.4
.1
-.7
.3
.1
.4
.3
-.3
.4
.2
.6
303.2
428.3
301.3
253.0
356.8
7
8
9
10
11
1.4
.0
-4.9
3.4
2.5
2.4
5.7
-4.3
2.4
2.6
2.0
2.5
-1.3
2.7
2.1
1.1
5.8
-10.4
1.5
1.8
5.7
16.9
-8.1
4.5
3.8
.0
-8.5
9.6
1.3
2.8
.4
.7
-1.2
.7
.3
.1
-.5
.9
.0
.4
.0
-1.2
1.5
.1
.2
.0
-.6
-.2
.3
.0
.3
1.4
-1.7
.2
.2
292.6
275.6
760.2
246.4
294.8
12
13
.6
2.0
2.7
3.0
4.0
3.6
2.5
4.1
2.9
3.8
3.4
1.9
.5
.6
.0
.0
.3
.1
.5
.3
-.1
.0
326.7
304.1
-2.8
-1.6
8.2
6.3
.6
5.5
15.6
-1.7
16.6
12.1
-2.3
2.4
12.5
-1.6
-9.7
-21.3
4.2
30.6
4.0
-.8
.1
-.9
.5
3.0
-2.7
.4
2.6
-2.3
.2
1.2
.4
.3
-1.6
264.0
790.8
265.7
3
4
5
ft
PRODUCER PRICES
Crude materials
14
15
16
Other
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental equivalence measure of homeownership after 1982.
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
. .
SOURCE. Bureau of Labor Statistics.
A48
2.16
Domestic Nonfinancial Statistics • September 1984
GROSS NATIONAL PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1984
1983
Account
1981
1982
1983
Q2
Q3
Q4
Ql
Q2 r
GROSS NATIONAL PRODUCT
1 Total
2,957.8
3,069.2
3,304.8
3,267.0
3,346.6
3,431.7
3,553.3
3,648.1
1,849.1
235.4
730.7
883.0
1,984.9
245.1
757.5
982.2
2,155.9
279.8
801.7
1,074.4
2,141.6
276.1
796.9
1,068.6
2,181.4
284.1
811.7
1,085.7
2,230.2
299.8
823.0
1,107.5
2,276.5
310.9
841.3
1,124.4
2,329.5
320.3
858.2
1,151.0
484.2
458.1
353.9
135.3
218.6
104.2
99.8
414.9
441.0
349.6
142.1
207.5
91.4
86.6
471.6
485.1
352.9
129.7
223.2
132.2
127.6
449.6
469.0
339.3
125.6
213.6
129.8
125.3
491.9
496.2
353.9
126.2
227.8
142.3
137.7
540.0
527.3
383.9
136.6
247.3
143.4
138.7
623.8
550.0
398.8
142.2
256.7
151.2
146.4
626.4
577.9
422.1
151.2
271.0
155.7
150.6
26.0
18.2
-26.1
-24.0
-13.5
-3.1
-19.4
-5.4
-4.3
11.6
12.7
14.1
73.8
60.6
48.5
44.7
15 Net exports of goods and services
16 Exports
17 Imports
28.0
369.9
341.9
19.0
348.4
329.4
-8.3
336.2
344.4
-6.5
328.1
334.5
-16.4
342.0
358.4
-29.8
346.1
375.9
-51.5
358.9
410.4
-54.6
366.9
421.6
18 Government purchases of goods and services
19 Federal
20
State and local
596.5
228.9
367.6
650.5
259.0
391.5
685.5
269.7
415.8
682.2
270.5
411.6
689.8
269.2
420.6
691.4
266.3
425.1
704.4
267.6
436.8
746.8
299.3
447.5
2,931.7
1,294.8
530.4
764.4
1,373.0
289.9
3,095.4
1,276.8
499.9
776.9
1,510.8
281.7
3,318.3
1,355.7
555.3
800.4
1,639.3
309.8
3,286.4
1,337.2
541.1
796.1
1,627.2
302.6
3,350.9
1,373.1
576.9
796.2
1,654.5
319.0
3,419.0
1,423.9
607.4
816.5
1,681.3
326.5
3,479.5
1,498.0
632.3
865.7
1,713.7
341.6
3,599.6
1,542.8
645.1
897.7
1,746.5
358.7
26.0
7.3
18.8
-26.1
-18.0
-8.1
-13.5
-2.1
-11.3
-19.4
-5.5
-13.9
-4.3
12.5
-16.8
12.7
14.5
-1.7
73.8
34.9
38.9
48.5
16.1
32.4
1,512.2
1,480.0
1,534.7
1,524.8
1,550.2
1,572.7
1,610.9
1,640.8
31
2,363.8
2,446.8
2,646.7
2,609.0
2,684.4
2,766.5
2,873.5
2,943.0
32 Compensation of employees
ii
Wages and salaries
34
Government and government enterprises
35
Other
36 Supplement to wages and salaries
37
Employer contributions for social insurance
38
Other labor income
1,765.4
1,493.2
284.6
1,208.6
272.2
132.3
140.0
1,864.2
1,568.7
306.6
1,262.2
295.5
140.0
155.5
1,985.0
1,658.8
328.2
1,331.1
326.2
153.1
173.1
1,962.4
1,640.8
325.0
1,315.9
321.6
151.7
169.9
2,000.7
1,670.8
330.6
1,340.3
329.9
153.9
175.9
2,055.4
1,715.4
335.0
1,380.4
340.0
157.9
182.1
2,113.4
1,755.9
342.9
1,413.0
357.4
169.4
188.1
2,158.9
1,793.1
347.5
1,445.6
365.7
172.2
193.5
125.1
93.6
31.5
111.1
89.2
21.8
121.7
107.9
13.8
116.9
106.8
10.1
123.3
112.1
11.2
131.9
114.6
17.3
154.9
122.5
32.5
149.9
126.3
23.6
2
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
6 Gross private domestic investment
7
Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures
12
Nonfarm
13
14
Change in business inventories
Nonfarm
By major type of product
21 Final sales, total
22 Goods
23
Durable
24
Nondurable
25
Services
26
Structures
27 Change in business inventories
28 Durable goods
29
Nondurable goods
30 MEMO: Total GNP in 1972 dollars
NATIONAL INCOME
39 Proprietors' income 1
40
Business and professional'
41
Farm'
42 Rental income of persons 2
42.3
51.5
58.3
59.0
56.2
60.4
61.0
61.6
43 Corporate profits'
44
Profits before tax 3
45
Inventory valuation adjustment
46
Capital consumption adjustment
189.9
221.2
-23.6
-7.6
159.1
165.5
-9.5
3.1
225.2
203.2
-11.2
33.2
216.7
198.2
-12.1
30.6
245.0
227.4
-19.3
36.9
260.0
225.5
-9.2
43.6
277.4
243.3
-13.5
47.6
291.4
246.7
-7.4
52.1
47 Net interest
241.0
260.9
256.6
254.2
259.2
258.9
266.8
281.2
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).
National Income Accounts
2.17
A49
PERSONAL INCOME A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1984
1983
Account
1982
1981
1983
Q2
Q3
Q4
Q1
Q2 R
PERSONAL INCOME AND SAVING
1
2,429.5
Total personal income
2 Wage and salary disbursements
Commodity-producing industries
4
Manufacturing
5
Distributive industries
6
Service industries
Government and government enterprises
7
8
9
10
11
1?
N
14
15
16
17
18
19
20
Other labor income
Proprietors' income1
Business and professional 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
EQUALS: Personal income
LESS: Personal tax and nontax payments
EQUALS: Disposable personal income
2,584.6
2,744.2
2,714.4
2,763.3
2,836.5
2,920.5
2,982.3
1,493.1
509.3
385.6
361.6
337.7
284.6
1,568.7
509.3
382.9
378.6
374.3
306.6
1,659.2
519.3
395.2
398.6
413.1
328.2
1,642.1
511.4
389.3
395.4
409.1
326.2
1,671.3
523.5
399.1
399.7
417.0
331.0
1,715.4
539.0
411.9
413.2
428.2
335.0
1,755.7
555.9
424.6
419.2
437.9
342.8
1,792.9
567.1
432.3
429.2
449.3
347.3
140.0
125.1
93.6
31.5
42.3
64.3
331.8
337.2
182.0
155.5
111.1
89.2
21.8
51.5
66.5
366.6
376.0
204.5
173.1
121.7
107.9
13.8
58.3
70.3
376.3
405.0
221.6
169.9
116.9
106.8
10.1
59.0
69.1
368.8
407.3
219.8
175.9
123.3
112.1
11.2
56.2
70.7
382.3
403.9
222.4
182.1
131.9
114.6
17.3
60.4
72.8
388.2
408.8
227.7
188.1
154.9
122.5
32.5
61.0
75.0
403.9
411.3
232.1
193.5
149.9
126.3
23.6
61.6
77.2
423.3
415.7
235.2
104.5
111.4
119.6
118.5
120.4
123.2
129.6
131.7
2,429.5
2,584.6
2,744.2
2,714.4
2,763.3
2,836.5
2,920.5
2,982.3
387.7
404.1
404.2
411.6
395.8
407.9
418.3
430.3
2,041.7
2,180.5
2,340.1
2,302.9
2,367.4
2,428.6
2,502.2
2,552.0
21
LESS: Personal outlays
1,904.4
2,044.5
2,222.0
2,206.1
2,248.4
2,300.0
2,349.6
2,406.4
22
EQUALS: Personal saving
137.4
136.0
118.1
96.7
119.0
128.7
152.5
145.6
6,572.8
4,131.4
4,561.0
6.7
6,369.6
4,145.9
4,555.0
6.2
6,543.4
4,302.8
4,670.0
5.0
6,509.8
4,295.8
4,619.0
4.2
6,601.9
4,325.2
4,694.0
5.0
6,681.4
4,386.0
4,776.0
5.3
6,829.4
4,426.5
4,865.0
6.1
6,941.8
4,497.7
4,927.0
5.7
MEMO
73
24
25
26
Per capita (1972 dollars)
Gross national product
Personal consumption expenditures
Disposable personal income
Saving rate (percent)
GROSS SAVING
27
Gross saving
484.3
408.8
437.2
414.7
455.2
485.7
543.9
550.1
78
79
30
31
Gross private saving
Personal saving
Undistributed corporate profits 1
Corporate inventory valuation adjustment
509.9
137.4
42.3
-23.6
524.0
136.0
29.2
-9.5
571.7
118.1
76.5
-11.2
538.1
96.7
70.2
-12.1
588.6
119.0
86.9
-19.3
615.0
128.7
100.0
-9.2
651.3
152.5
107.0
-13.5
663.2
145.6
117.7
-7.4
3?
33
34
Capital consumption allowances
Corporate
Noncorporate
Wage accruals less disbursements
202.6
127.6
.0
221.8
137.1
.0
231.2
145.9
.0
228.2
143.0
.0
233.4
149.4
.0
236.4
150.0
.0
239.9
151.8
.0
243.4
156.4
.0
36
37
Government surplus, or deficit ( - ) , national income and
product accounts
Federal
State and local
-26.7
-64.3
37.6
-115.2
-148.2
32.9
-134.5
-178.6
44.1
-123.4
-167.3
43.9
-133.5
-180.9
47.4
-129.3
-180.5
51.2
-107.4
-161.3
53.9
-113.1
-166.9
53.9
38
Capital grants received by the United States, net
1.1
.0
.0
.0
.0
.0
.0
.0
39
Gross investment
490.0
408.3
437.7
418.7
450.3
480.9
546.1
545.7
40
41
Gross private domestic
Net foreign
484.2
5.8
414.9
-6.6
471.6
-33.9
449.6
-30.9
491.9
-41.5
540.0
-59.1
623.8
-77.7
626.4
-80.6
42
Statistical discrepancy
5.6
-.5
.5
4.1
-4.8
-4.8
2.2
-4.4
35
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE. Survey of Current Business (Department of Commerce).
A50
3.10
International Statistics • September 1984
U.S. INTERNATIONAL TRANSACTIONS Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted.1
1984
1983
Item credits or debits
1981
1982
1983
Q2
Ql
1 Balance on current account
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)
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
Q4
Q3
Ql p
6,294
-9,199
-41,563
-2,943
-2,332
-9,560
-8,769
-11,846
-14,498
-17,213
-15,964
-19,408
-18,360
-28,001
237,085
-265,086
-1,116
34,053
8,191
-36,469
211,198
-247,667
195
27,802
7,331
-61,055
200,257
-261,312
515
23,508
4,121
-9,277
49,246
-58,523
790
5,238
1,879
-14,870
48,745
-63,615
53
5,978
1,127
-17,501
50,437
-67,938
-55
7,172
681
-19,407
51,829
-71,236
-273
5,119
434
-25,641
54,164
-79,805
-284
7,619
1,050
-2,382
-4,451
-2,635
-5,423
-2,590
-6,060
-599
-974
-638
-1,210
-665
-1,478
-688
-2,398
-723
-1,429
-5,107
-6,143
-5,013
-1,130
-1,251
-1,204
-1,429
-1,989
16
0
-303
-212
531
529
0
-209
-88
826
-953
0
545
-1,996
498
-657
0
-226
-200
-231
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
-5,175
0
-1,823
-2,491
-861
-4,965
0
-1,371
-2,552
-1,041
-1,196
0
-66
-4,434
3,304
-787
0
-98
-2,139
1,450
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
-100,694
-84,175
-1,181
-5,714
-9,624
-107,790
-111,070
6,626
-8,102
4,756
-43,281
-25,391
-5,333
-7,676
-4,881
-22,447
-18,175
-3,199
-1,866
793
175
3,894
-230
-3,257
-232
-8,548
-2,871
-233
-1,571
-3,873
-12,461
-8,239
-1,671
-983
-1,568
-3,281
-334
n.a.
244
-3,191
22 Change in foreign official assets in the United States
(increase, +)
23
U.S. Treasury securities
24
Other U.S. government obligations
25
Other U.S. government liabilities4
26
Other U.S. liabilities reported by U.S. banks
27 Other foreign official assets 5
5,003
5,019
1,289
-300
-3,670
2,665
3,318
5,728
-694
382
-1,747
-351
5,339
6,989
-487
199
433
-1,795
-252
3,012
-371
-533
-1,978
-382
1,739
1,985
-170
434
316
-826
-2,703
-611
-363
137
-1,403
-463
6,555
2,603
417
161
3,498
-124
-2,859
-269
-36
185
-2,140
-599
29
30
31
32
33
28 Change in foreign private assets in the United States
(increase, +) 3
U.S. bank-reported liabilities
U.S. nonbank-reported liabilities
Foreign private purchases of U.S. Treasury securities, net
Foreign purchases of other U.S. securities, net
Foreign direct investments in the United States, net 3
76,310
42,128
917
2,946
7,171
23,148
91,863
65,922
-2,383
7,062
6,396
14,865
76,383
49,059
-1,318
8,731
8,612
11,299
16,139
10,244
-2,337
2,924
3,003
2,305
10,714
1,698
-64
3,139
2,614
3,327
22,281
14,792
1,311
995
1,861
3,322
27,249
22,325
-228
1,673
1,134
2,345
14,662
9,763
n.a.
1,490
1,547
1,862
34 Allocation of SDRs
35 Discrepancy
1,093
22,275
0
32,916
0
9,331
0
11,420
-579
0
-1,833
439
0
1,491
-2,518
0
-1,748
2,657
0
13,532
-172
22,275
32,916
9,331
11,999
-2,272
4,009
-4,405
13,704
-5,175
-4,965
-1,196
-787
16
529
-953
-657
1,305
-2,840
6,394
-3,044
37
Statistical discrepancy in recorded data before seasonal
adjustment
MEMO
Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in the United States
(increase, +)
40 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 22
above)
41 Transfers under military grant programs (excluded from
lines 4, 6, and 10 above)
38
39
5,303
2,936
5,140
281
13,581
7,291
-8,639
-1,466
-3,482
-2,051
-1,640
-2,525
675
593
205
42
30
49
84
27
1. Seasonal factors are no longer calculated for lines 6, 10, 12-16, 18-20, 22-34,
and 38-41.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing; military
exports are excluded from merchandise data and are included in line 6.
3. Includes reinvested earnings.
4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business
(Department of Commerce).
Trade and Reserve and Official Assets
3.11
A51
U.S. FOREIGN TRADE
Millions of dollars; monthly data are seasonally adjusted.
1984
Item
1981
1982
1983
Jan.
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments
233,677
212,193
200,486
Feb.
18,326
Mar.
Apr.
17,727
17,212
17,521
May
17,950
June
17,633
July
19,442
2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded
warehouses
261,305
243,952
258,048
26,586
26,147
26,771
28,368
25,569
25,356
31,883
3 Trade balance
-27,628
-31,759
-57,562
-8,260
-8,935
-9,044
-10,846
-7,619
-7,723
-12,440
NOTE. The data through 1981 in this table are reported by the Bureau of Census
data of a free-alongside-ship (f.a.s.) value basis—that is, value at the port of
export. Beginning in 1981, foreign trade of the U.S. Virgin Islands is included in
the Census basis trade data; this adjustment has been made for all data shown in
the table. Beginning with 1982 data, the value of imports are on a customs
valuation basis.
The Census basis data differ from merchandise trade data shown in table 3.10,
U.S. International Transactions Summary, for reasons of coverage and timing. On
the export side, the largest adjustments are: (1) the addition of exports to Canada
3.12
not covered in Census statistics, and (2) the exclusion of military sales (which are
combined with other military transactions and reported separately in the "service
account" in table 3.10, line 6). On the import side, additions are made for gold,
ship purchases, imports of electricity from Canada, and other transactions;
military payments are excluded and shown separately as indicated above.
SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade"
(Department of Commerce, Bureau of the Census).
U.S. RESERVE ASSETS
Millions of dollars, end of period
1984
Type
1982
1981
1983
Feb.
Mar.
Apr.
May
June
Aug.
July
1 Total
30,075
33,958
33,747
34,820
34,975
34,585
34,713
34,547
34,392
34,771
2 Gold stock, including Exchange Stabilization Fund 1
11,151
11,148
11,121
11,116
11,111
11,107
11,104
11,100
11,099
11,098
3
Special drawing rights 2 3
4,095
5,250
5,025
5,320
5,341
5,266
5,513
5,459
5,453
5,652
4
Reserve position in International Monetary Fund 2
5,055
7,348
11,312
11,707
11,706
11,618
11,666
11,659
11,735
11,831
5
Foreign currencies 4
9,774
10,212
6,289
6,677
6,817
6,594
6,430
6,329
6,105
6,190
1. Gold held under earmark at Federal Reserve Banks for foreign and international accounts is not included in the gold stock of the United States; see table
3.13. Gold stock is valued at $42.22 per fine troy ounce.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through December 1980, 16 currencies were used; from January
1981, 5 currencies have been used. The U.S. SDR holdings and reserve position in
the IMF also are valued on this basis beginning July 1974.
3.13
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus transactions in SDRs.
4. Valued at current market exchange rates.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1984
Assets
1982
1981
1983
Feb.
1 Deposits
Assets held in custody
2 U.S. Treasury securities 1
3 Earmarked gold2
Apr.
May
June
July
Aug.
505
328
190
246
222
345
295
238
215
242
104,680
14,804
112,544
14,716
117,670
14,414
119,499
14,291
116,768
14,278
117,808
14,278
114,562
14,268
117,143
14,266
115,760
14,270
117,130
14,258
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.
A52
3.14
International Statistics • September 1984
FOREIGN BRANCHES OF U.S. BANKS
Millions of dollars, end of period
Balance Sheet Data
1983
Asset account
1980
1981
1984
1982
Dec.
Jan.
Feb.
Mar.
Apr.
May
June?
All foreign countries
401,135
469,712
476,539
457,936
465,498
480,629
474,103
484,888'
476,726
63,743
43,267
91,805
61,666
115,065
81,113
112,237
77,697
112,778
79,429
121,813
86,379
120,834
85,150
125,659
88,863
124,932
89,705
14,342
20,885
331,820
95,773
104,998
23,497
107,552
8,258
20,476
30,139
33,952
34,540
33,349
35.434
35,684
36,796
354,960
77,019
146,448
28,033
103,460
j
378,954
87,821
150,763
28,197
112,173
358,493
91,168
133,752
24,131
109,442
342,609
92,718
117,593
24,508
107,790
326,312
85,985
107,633
25,288
107,406
332,383
85,754
110,848
25,719
110,062
338,726
90,703
114,200
24,775
109,048
333,187
92,842
107,048
24,753
108,544
338,641'
95,095
112,182'
24,401'
106,965'
17,715
19,414
18,865
19,387
20,337
20,090
20,082
20,588'
19,974
350,735
361,982
370,958
349,408
350,306
364,591
358,606
371,601'
366,947
27,191
19,896
12 Total payable in U.S. dollars .
20,150
291,798
11 Other assets
13 Claims on United States
14
Parent bank
15
Other banks in United States 1 .
16
Nonbanks 1
17 Claims on foreigners
18
Other branches of parent bank .
19
Banks
20
Public borrowers
21
Nonbank foreigners
462,847
28,460
20,202
1 Total, all currencies.
2 Claims on United States
3
Parent bank
4
Other banks in United States 1 .
5
Nonbanks 1
6 Claims on foreigners
7
Other branches of parent bank .
8
Banks
9
Public borrowers
10
Nonbank foreigners
62,142
42,721
90,085
61,010
112,959
80,018
110,139
76,550
110,543
78,200
119,436
85,067
118,355
83,729
123.284
87,683
19,421
29,075
32.941
33,589
32,343
34,369
34,626
35,601
276,937
69,398
122,110
22,877
62,552
259,871
73,537
106,447
18,413
61,474
247.327
75.207
93,257
17,88!
60,982
228,647
68,113
82,551
17,880
60,103
229,241
66,792
84,230
18,127
60,092
235,215
70,940
87,764
18,104
58,407
229,872
70,100
82,702
17,935
59,135
237,472'
75,503
86,123'
17,669
58,177
9,216
22 Other assets .
7,295
255,391
58,541
117,342
23,491
56,017
|
122,737
88,593
14,100
20,044
233,654
77,326
80,675
17,067
58,586
11,656
12,026
10.672
10,622
10,522
9,940
10,379
10.845'
10,556
United Kingdom
144,717
24 Claims on United States
25
Parent bank
26
Other banks in United States 1 .
27
Nonbanks 1
28 Claims on foreigners
29
Other branches of parent bank .
30
Banks
31
Public borrowers
32
Nonbank foreigners
|
161,067
158,732
155,096
157,972
161,007
161,109
159,059
158,724
11,823
7,885
27,354
23,017
34,433
29,111
36,603
30,728
36,646
30,875
38,072
32,201
38,428
32,855
36,148
30,266
36,309
30,621
1,223
4,465
117,212
38,518
39,892
5,876
32,926
2,234
3,938
4,337
5.322
5,875
5,771
5,871
5,573
5,882
131,142
34,760
58,741
6,688
30,953
138,888
41,367
56,315
7,490
33,716
127,734
37,000
50,767
6,240
33,727
119,280
36,565
43,352
5,898
33,465
113,316
33,871
40,119
6,063
33,263
116,055
33,296
42,300
6,213
34,246
118,200
34,617
43,804
6,076
33,703
117,713
38,571
39,779
6,072
33,291
117,808
36.804
42,084
5,992
32,928
6,066
44 Other assets .
5,019
5,177
5,271
4,735
4,968
5,103
5,203
123,740
126,012
121,195
121,944
124,501
123,174
122,215
123,628
11,246
7,721
26,761
22,756
33.756
28,756
35,886
30,383
35,934
30,515
37,282
31,789
37,598
32,453
35,210
29,876
1,887
89,723
28,268
42,073
4,911
14,471
3,525
4,005
92,228
31,648
36,717
4,329
19,534
5,000
5,503
5,419
5,493
99,850
35,439
40,703
5,595
18,113
88,917
31,838
32,188
4,194
20,697
82,190
28,770
28,749
4,356
20,315
83,067
28,103
30,158
4,414
20,392
84,599
28,723
31,613
4,390
19,873
5,145
82,769
29,247
29,135
4,408
19,979
5,334
83,925
30,278
30,036
4,296
19,315
35,358
30,181
1,115
4,062
85,176
32,765
28,610
4,284
19,517
2,860
|
5,979
115,188
7,116
5,229
34 Total payable in U.S. dollars .
6,518
99,699
33 Other assets
35 Claims on United States
36
Parent bank
37
Other banks in United States' .
38
Nonbanks 1
39 Claims on foreigners
40
Other branches of parent bank .
41
Banks
42
Public borrowers
43
Nonbank foreigners
157,229
7,509
5,275
23 Total, all currencies.
4,092
4,751
3,339
3,119
2,943
2,620
2,807
3,080
3,094
Bahamas and Caymans
123,837
46 Claims on United States
47
Parent bank
48
Other banks in United States 1 .
49
Nonbanks 1
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 .
)
149,108
145,156
151,532
141,573
140,198
149,164
144,502
155,805
153,038
17,751
12,631
45 Total, all currencies.
46,546
31,643
59,403
34,653
74.832
47,807
70,729
43,444
70,706
44,474
77,807
50,146
75,443
47,566
83,311
54,122
5,120
101,926
13,342
54,861
12,577
21,146
14,903
24,750
27.025
27,285
26,232
27,661
27,877
29,189
98,057
12,951
55,151
10,010
19,945
81,450
18,720
42,699
6,413
13,618
72.788
17,340
36,767
6,084
12,597
66,926
15,989
32,451
5,992
12,494
65,609
14,657
32,525
5,956
12,471
67,422
15,265
34,295
6,028
11,834
65,152
14,811
32,231
5,983
12,127
68,440
16,931
33,237
5,920
12,352
81,301
53,651
12,049
15,601
67,905
18.057
31,349
5,996
12,503
4,160
4,505
4,303
3,912
3,918
3,883
3,935
3,907
4,054
3,832
117,654
143,743
139,605
145,091
135,166
133,836
142,677
138,102
149,340
146,880
1. Data for assets vis-a-vis other banks in the United States and vis-a-vis
nonbanks are combined for dates prior to June 1984.
Overseas Branches
3.14
A53
Continued
1983
Liability account
1980
1981
1984
1982
Dec.
Jan.
Feb.
Mar.
Apr.
May
JuneP
All foreign countries
401,135
462,847
469,712
476,539
457,936
465,498
480,629
474,103
484,888'
476,726
58 Negotiable CDs 2
59 To United States
60
Parent bank
61
Other banks in United States
62
Nonbanks
n.a.
91,079
39,286
14,473
37,275
n.a.
137,767
56,344
19,197
62,226
n.a.
179,015
75,621
33,405
69,989
n.a.
187,602
80,537
29,107
77,958
n.a.
181,735
79,136
26,660
75,939
n.a.
184,482
81,112
25,678
77,692
n.a.
187,436'
75,307'
28,694'
81,435
n.a.
183,691
75,282
26,810
81,599
n.a.
190,245'
80,027
27,451
82,767'
43,704
161,531
80,819
21,618
59,094
63 To foreigners
64
Other branches of parent bank
65
Banks
66
Official institutions
67
Nonbank foreigners
68 Other liabilities
295,411
75,773
132,116
32,473
55,049
14,690
305,630
86,396
124,906
25,997
68,331
19,450
270,853
90,191
96,860
19,614
64,188
19,844
269,602
89,055
92,882
18,893
68,772
19,335
257,155
81,793
86,961
19,702
68,699
19,046
261,522
81,684
89,538
20,549
69,751
19,494
273,159'
87,229
95,690
18,250
71,982
20,034
270,242
90,937
90,166
17,882
71,257
20,170
274,840'
92,254
94,041'
19,608
68,937'
19,803'
251,916
92,572
83,026
19,083
57,235
19,575
69 Total payable in U.S. dollars
303,281
364,447
379,270
387,740
367,557
369,156
381,976
374,664
389,683
384,274
n.a.
177,864
76,778
26,166
74,920
n.a.
180,161
78,512
25,111
76,538
n.a.
183,148
74,724'
28,108'
80,316
n.a.
179,389
72,856
26,223
80,310
n.a.
185,966
77,568
26,798
81,600
41,135
156,988
78,132
21,024
57,832
180,676
64,830
50,583
14,673
50,590
9,017
179,884
63,480
50,683
15,835
49,886
9,111
189,612
68,557
56,202
13,161
51,692
9,216
185,165
69,096
50,874
13,347
51,848
10,110
193,763
73,380
54,932
14,835
50,616
9,954
176,282
74,548
46,992
13,799
40,943
9,869
57 Total, all currencies
2
70 Negotiable CDs
71 To United States
72
Parent bank
73
Other banks in United States
74
Nonbanks
75 To foreigners
76
Other branches of parent bank
77
Banks
78
Official institutions
79
Nonbank foreigners
80 Other liabilities
n.a.
88,157
37,528
14,203
36,426
n.a.
134,700
54,492
18,883
61,325
n.a.
175,528
73,295
33,040
69,193
n.a.
183,837
78,328
28,573
76,936
206,883
58,172
87,497
24,697
36,517
8,241
217,602
69,299
79,594
20,288
48,421
12,145
192,510
72,921
57,463
15,055
47,071
11,232
194,056
72,002
57,015
13,852
51,187
9,847
United Kingdom
144,717
157,229
161,067
158,732
155,0%
157,972
161,007
161,109
159,059
158,724
n.a.
21,785
4,225
5,716
11,844
n.a.
38,022
5,444
7,502
25,076
n.a.
53,954
13,091
12,205
28,658
n.a.
55,799
14,021
11,328
30,450
n.a.
55,618
17,075
10,640
27,903
n.a.
56,550
18.307
10,570
27,673
n.a.
56,228
15,850
11,440
28,938
n.a.
56,526
16,311
10,542
29,673
n.a.
55,353
17,820
9,487
28,046
39,520
32,079
18,532
4,712
8,835
87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities
117,438
15,384
56,262
21,412
24,380
5,494
112,255
16,545
51,336
16,517
27,857
6,952
99,567
18,361
44,020
11,504
25,682
7,546
95,847
19,038
41,624
10,151
25,034
7,086
92,268
18,526
38,812
10,530
24,400
7,210
93,734
17,741
39,548
11,531
24,914
7,688
97,109
21,477
42,073
8,833
24,726
7,670
97,064
21,939
40,751
9,403
24,971
7,519
96,339
20,617
41,597
10,377
23,748
7,367
79,678
21,668
32,950
9,533
15,527
7,447
93 Total payable in U.S. dollars
103,440
120,277
130,261
131,167
126,987
127,622
130,985
128,369
128,255
128,612
38,143
30,733
18,244
4,497
7,992
81 Total, all currencies
82 Negotiable CDs 2
83 To United States
84
Parent bank
85
Other banks in United States
86
Nonbanks
94 Negotiable CDs
95 To United States
96
Parent bank
97
Other banks in United States
98
Nonbanks
n.a.
21,080
4,078
5,626
11,376
n.a.
37,332
5,350
7,249
24,733
n.a.
53,029
12,814
12,026
28,189
n.a.
54,691
13,839
11,044
29,808
n.a.
54,535
16,838
10,406
27,291
n.a.
55,105
17,900
10,247
26,958
n.a.
55,031
15,606
11,204
28,221
n.a.
55,201
16,127
10,292
28,782
n.a.
54,094
17,624
9,200
27,270
99 To foreigners
100
Other branches of parent bank
101
Banks
102
Official institutions
103
Nonbank foreigners
104 Other liabilities
79,636
10,474
35,388
17,024
16,750
2,724
79,034
12,048
32,298
13,612
21,076
3,911
73,477
14,300
28,810
9,668
20,699
3,755
73,279
15,403
29,320
8,279
20,277
3,197
69,557
14,758
26,386
8,594
19,819
2,895
69,438
13,956
26,229
9,777
19,476
3,079
72,892
17,559
28,833
6,910
19,590
3,062
69,739
14,801
27,286
7,650
20,002
3,429
70,764
15,733
27,308
8,760
18,963
3,397
56,153
17,646
19,574
7,639
11,294
3,583
2
Bahamas and Caymans
123,837
149,108
145,156
151,532
141,573
140,198
149,164
144,502
155,805
153,038
106 Negotiable CDs 2
107 To United States
108
Parent bank
109
Other banks in United States
110
Nonbanks
n.a.
59,666
28,181
7,379
24,106
n.a.
85,759
39,451
10,474
35,834
n.a.
104,425
47,081
18,466
38,878
n.a.
110,831
50,256
15,711
44,864
n.a.
104,170
44,734
14,401
45,035
n.a.
104,552
44,186
13,578
46,788
n.a.
109,975
45,227
15,636
49,112
n.a.
106,672
43,211
14,867
48,594
n.a.
113,920
45,987
16,530
51,403
1,668
109,505
45,457
15,450
48,598
111 To foreigners
112
Other branches of parent bank
113
Banks
114
Official institutions
115
Nonbank foreigners
116 Other liabilities
61,218
17,040
29,895
4,361
9,922
2,953
60,012
20,641
23,202
3,498
12,671
3,337
38,274
15,796
10,166
1,967
10,345
2,457
38,362
13,376
11,869
1,916
11,201
2,339
35,163
12,253
9,883
2,309
10,718
2,240
33,409
11,790
9,351
1,870
10,398
2,237
36,836
11,987
11,405
2,395
11,049
2,353
35,502
12,858
9,859
1,869
10,916
2,328
39,390
14,031
12,106
2,197
11,056
2,495
39,313
13,771
12,496
2,662
10,384
2,552
119,657
145,284
141,908
147,727
137,709
136,517
145,128
140,261
151,664
148,964
105 Total, all currencies
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.
A54
3.15
International Statistics • September 1984
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1984
Item
1982
1983
Jan.
1 Total
2
3
4
5
6
7
8
9
10
11
12
1
Mar.
Apr.
May r
June
July?
172,718
By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries 6
177,922
176,232
176,461
174,906
175,319
171,932
173,979
174,627
24,989
46,658
25,503
54,341
22,768
55,327
23,169
56,084
23,373
53,681
23,834
53,171
23,124
51,035
23,592
53,977
25,666
52,003
67,733
8,750
24,588
68,514
7,250
22,314
69,053
7,250
21,823
69,061
6,600
21,907
69,545
6,600
21,707
70,167
6,600
21,547
69,809
6,600
21,364
68,936
6,600
20,874
69,146
6,600
21,212
61,298
2,070
6,057
96,034
1,350
5,909
By type
Liabilities reported by banks in the United States 2
U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes
Marketable
Nonmarketable 4
U.S. securities other than U.S. Treasury securities 5
67,645
2,438
6,248
92,544
958
8,089
66,185
2,511
6,443
92,185
1,051
7,846
67,903
2,329
7,605
90,547
1,067
7,370
67,714
1,944
6,460
90,610
1,038
7,140
69,928
1,557
7,468
88,517
941
6,908
69,898
1,247
6,474
86,505
1,179
6,629
70,029
994
7,073
88,411
996
6,476
68,427
1,250
7,417
90,435
956
6,142
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable in foreign currencies through 1974) and Treasury bills issued to official
institutions of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies.
3.16
Feb.
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
NOTE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States.
LIABILITIES TO A N D CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1983
Item
1980
1981
Sept.
1 Banks' own liabilities
2 Banks' own claims
3 Deposits
4 Other claims
5 Claims of banks' domestic customers 1
1. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the accounts
of their domestic customers.
3,748
4,206
2,507
1,699
962
3,523
4,980
3,398
1,582
971
1984
1982
4,844
7,707
4,251
3,456
676
5,976
7,998
3,045
4,953
717
Dec.
5,310
7,231
2,731
4,501
1,059
Mar.
6,168
8,992
4,000
4,992
361
JuneP
6,402
9,622
4,280
5,342
227
NOTE. Data on claims exclude foreign currencies held by U.S. monetary
authorities,
Nonbank-Reported
3.17
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Millions of dollars, end of period
Data
Reported by Banks in the United States
1984
Holder and type of liability
1981A
1982
1983
Jan.
Feb.
Mar.
Apr.
May
June
July P
1 All foreigners
243,889
307,056
369,560
358,958
368,902
377,173
379,806
393,784'
400,516
393,844
2 Banks' own liabilities
3 Demand deposits
4 Time deposits'
Other 2
6 Own foreign offices 3
163,817
19,631
29,039
17,647
97,500
227,089
15,889
68,035
23,946
119,219
278,977
17,602
89,977
26,406
144,993
264,951
16,124
87,846
23,277
137,703
271,858
16,639
91,220
24,012
139,988
284,926
17,466
96,462
24,485
146,513
286,601
17,162
96,629
24,082
148,728
301,382r
17,200'
103,403r
23,733
157,047'
303,788
17,630
105,207
23,085
157,866
298,367
16,352
108,002
25,176
148,837
80,072
55,315
79,967
55,628
90,582
68,669
94,007
71,083
97,043
74,277
92,247
69,666
93,205
69,893
92,402
68,511
96,728
72,191
95,477
71,158
18,788
5,970
20,636
3,702
17,529
4,385
18,063
4,862
17,864
4,903
18,075
4,506
18,703
4,608
18,780
5,112
19,533
5,003
19,328
4,990
2,721
4,922
5,957
4,759
6,831
6,243
6,356
5,316
5,055
5,344
638
262
58
318
1,909
106
1,664
139
4,632
297
3,584
750
2,867
271
2,235
361
2,317
347
1,611
360
4,047
414
2,656
977
3,528
194
2,468
866
2,229
255
1,640
335
2,920
182
2,209
529
2,612
142
2,213
257
2,083
541
3,013
1,621
1,325
463
1,892
1,045
4,514
3,416
2,196
1,224
2,827
1,759
3,087
2,057
2,135
887
2,732
1,709
1,542
0
1,392
0
862
0
847
0
1,098
0
971
0
1,068
0
1,030
0
1,248
0
1,023
0
7 Banks' custody liabilities4
8
U.S. Treasury bills and certificates 5
9 Other negotiable and readily transferable
instruments 6
10 Other
11 Nonmonetary international and regional
organizations7
17 Banks' own liabilities
13 Demand deposits
14 Time deposits'
15 Other 2
16 Banks' custody liabilities4
17 U.S. Treasury bills and certificates
18 Other negotiable and readily transferable
instruments 6
19 Other
20 Official institutions8
79,126
71,647
79,844
78,095
79,253
77,053
77,005
74,160
77,569
77,669
71 Banks' own liabilities
22. Demand deposits
23 Time deposits'
Other 2
24
17,109
2,564
4,230
10,315
16,640
1,899
5,528
9,212
19,396
1,837
7,320
10,239
16,488
1,753
7,286
7,449
17,512
1,663
7,638
8,211
17,105
1,955
6,698
8,452
17,532
1,761
7,489
8,282
16,779
1,733
7,168
7,878
16,471
1,898
7,418
7,154
18,421
1,884
8,212
8,324
75 Banks' custody liabilities4
U.S. Treasury bills and certificates 5
26
Other negotiable and readily transferable
27
instruments 6
Other
28
62,018
52,389
55,008
46,658
60,448
54,341
61,607
55,327
61,741
56,084
59,948
53,681
59,473
53,171
57,380
51,035
61,098
53,977
59,248
52,003
9,581
47
8,321
28
6,082
25
6,257
23
5,623
34
6,249
19
6,287
15
6,307
38
7,030
91
7,236
9
29 Banks9
136,008
185,881
226,886
218,387
222,995
233,424
234,285
249,289'
251,937
246,583
30 Banks' own liabilities
31
Unaffiliated foreign banks
37
Demand deposits
33
Time deposits'
Other 2
34
35 Own foreign offices 3
124,312
26,812
11,614
8,720
6,477
97,500
169,449
50,230
8,675
28,386
13,169
119,219
205,347
60,354
8,787
36,964
14,603
144,993
195,811
58,107
8,175
35,189
14,743
137,703
200,477
60,489
8,394
37,538
14,557
139,988
211,040
64,527
8,328
41,905
14,294
146,513
211,812
63,083
8,797
40,055
14,230
148,728
226,139'
69,092
8,879
45,369
14,845
157,047'
227,349
69,483
9,083
45,689
14,711
157,866
221,323
72,486
8,175
48,418
15,894
148,837
36 Banks' custody liabilities4
37
U.S. Treasury bills and certificates
38 Other negotiable and readily transferable
instruments 6
39 Other
11,696
1,685
16,432
5,809
21,540
10,178
22,576
10,776
22,519
10,756
22,384
10,760
22,473
10,795
23,150
11,182
24,588
12,771
25,260
12,967
4,400
5,611
7,857
2,766
7,485
3,877
7,416
4,384
7,378
4,385
7,447
4,177
7,586
4,092
7,523
4,445
7,446
4,371
7,867
4,426
40 Other foreigners
26,035
44,606
56,872
57,717
59,822
60,454
62,160
65,020'
65,955
64,249
41 Banks' own liabilities
Demand deposits
4?
43 Time deposits
Other 2
44
21,759
5,191
16,030
537
39,092
5,209
32,457
1,426
49,603
6,681
42,109
813
49,785
5,925
43,136
724
51,552
6,234
44,434
884
52,734
6.770
45,203
761
53,728
6,409
46,617
703
56,235'
6,333'
49,226'
675
57,047
6,466
49,890
691
56,012
6,152
49,159
701
4,276
699
5,514
1,540
7,269
3,686
7,932
3,935
8,270
4,021
7,719
4,001
8,431
4,168
8,785
4,238
8,907
4,556
8,237
4,480
3,265
312
3,065
908
3,100
483
3,542
455
3,764
484
3,408
311
3,763
501
3,919
628
3,810
541
3,201
556
10,747
14,307
10,407
10,307
9,416
9,688
10,128
10,630
11,001
10,929
45 Banks' custody liabilities4
46
U.S. Treasury bills and certificates
Other negotiable and readily transferable
47
instruments 6
Other
48
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."
• Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
A55
A56
3.17
International Statistics • September 1984
Continued
1984
Area and country
1981A
1982
1983
Jan.
Feb.
Mar.
Apr.
May
June
July"
1 Total
243,889
307,056
369,560
358,958
368,902
377,173
379,806
393,784'
400,516
393,844
2 Foreign countries
241,168
302,134
363,603
354,199
362,070
370,931
373,450
388,469'
395,461
388,501
91,275
5%
4,117
333
296
8,486
7,645
463
7,267
2,823
1,457
354
916
1,545
18,716
518
28,286
375
6,541
49
493
117,756
519
2,517
509
748
8,171
5,351
537
5,626
3,362
1,567
388
1,405
1,390
29,066
296
48,172
499
7,006
50
576
138,045
585
2,709
466
531
9,441
3,599
520
8,462
4,290
1,673
373
1,603
1,799
32,219
467
60,683
562
7,403
65
596
134,899
755
2,972
372
298
8,122
3,823
513
7,622
4,008
1,481
377
1,645
1,8%
31,956
334
61,806
505
5,872
62
482
140,061
756
3,218
355
398
10,098
4,586
513
7,648
4,210
1,452
352
1,664
1,755
32,241
400
64,436
477
4,%5
74
464
142,406
861
3,367
285
287
10,728
4,878
503
7,395
4,444
1,285
403
1,749
1,838
32,237
318
64,971
479
5,738
177
464
147,724
883
3,585
307
485
10,730
5,205
528
7,813
5,036
1,847
414
1,707
1,673
32,765
335
67,805
448
5,584
61
510
151,532'
867
4,680
378
405
12,119'
3,990
594
8,315
5,030
1,536
401
1,663
1,962
32,784
444
69,006
511
6,309
53
484
155,668
770
5,138
291
1,249
11,670
3,663
596
8,147
5,735
2,084
425
1,774
1,486
35,152
315
69,650
556
6,315
41
612
150,587
720
4,771
429
947
11,997
3,896
598
6,949
5,616
1,624
440
1,824
1,832
32,088
349
69,377
524
6,069
31
504
3 Europe
4
Austria
3 Belgium-Luxembourg
t> Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
12 Netherlands
U
Norway
14 Portugal
li
Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21
Other Western Europe 1
22
U.S.S.R
23 Other Eastern Europe 2
24 Canada
10,250
12,232
16,026
16,270
17,679
17,182
16,707
17,455
17,572
19,176
25 Latin America and Caribbean
26 Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32 Colombia
33 Cuba
34
Ecuador
35 Guatemala
36 Jamaica
37
Mexico
38 Netherlands Antilles
39 Panama
40
Peru
41
Uruguay
Venezuela
42
43 Other Latin America and Caribbean
85,223
2,445
34,856
765
1,568
17,794
664
2,993
9
434
479
87
7,235
3,182
4,857
694
367
4,245
2,548
114,163
3,578
44,744
1,572
2,014
26,381
1,626
2,594
9
455
670
126
8,377
3,597
4,805
1,147
759
8,417
3,291
140,270
4,011
55,977
2,328
3,178
34,545
1,842
1,689
8
1,047
788
109
10,392
3,879
5,924
1,166
1,232
8,622
3,533
136,091
4,303
52,381
2,745
2,997
33,082
1,811
1,586
9
828
800
113
11,006
3,773
5,372
1,130
1,278
9,332
3,543
138,465
4,536
52,845
3,165
3,485
32,504
1,935
1,840
13
826
812
131
10,705
4,503
5,545
1,146
1,321
9,461
3,693
143,255
4,365
58,141
2,886
3,723
32,677
1,876
1,669
8
825
815
132
10,699
4,901
5,498
1,157
1,418
8,566
3,899
143,864
4,616
56,930
3,097
3,795
32,936
1,972
1,814
8
970
850
131
11,187
4,668
5,482
1,179
1,330
9,076
3,823
152,237'
4,583'
62,656
3,276
3,568'
33,777
1,887
1,767'
10
885
842
131
11,874
4,666'
6,293
1,249
1,380'
9,434
3,958'
152,086
4,535
61,566
2,598
3,690
34,605
1,970
1,809
9
908
825
157
11,976
4,459
6,652
1,279
1,309
10,129
3,610
147,587
4,426
54,544
6,292
4,091
33,720
2,161
1,800
7
845
809
116
11,631
4,252
6,659
1,277
1,300
9,683
3,975
44 Asia
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle-East oil-exporting countries 3
Other Asia
49,822
48,716
58,409'
56,043
55,344
57,662
54,951
57,180
60,196
61,633
158
2,082
3,950
385
640
592
20,750
2,013
874
534
12,992
4,853
203
2,761
4,465
433
857
606
16,078
1,692
770
629
13,433
6,789
249
3,997
6,610
464
997
1,722
18,079
1,648
1,234
747
12,970
9,693
249
4,270
6,1%
670
1,093
786
17,069
1,614
1,235
776
12,516
9,570
168
4,291
5,884
749
859
752
17,615
1,542
1,280
622
11,587
9,994
272
4,193
6,387
687
753
832
19,216
1,748
1,264
714
12,197
9,398
302
4,388
5,447
651
784
706
18,862
1,409
1,015
636
12,269
8,482
400
4,364
5,862
646
897
754
20,522
1,337
1,130
730
11,615
8,924
469
4,578
6,416
498
1,281
768
19,433
1,276
1,032
875
12,341
11,229
631
4,795
6,116
620
911
803
19,399
1,381
976
778
14,746
10,476
57 Africa
58
Egypt
59
Morocco
South Africa
60
61
Zaire
Oil-exporting countries 4
62
Other Africa
63
3,180
360
32
420
26
1,395
946
3,124
432
81
292
23
1,280
1,016
2,800
645
84
449
87
620
917
2,917
572
109
486
61
869
821
3,070
568
138
502
66
839
957
3,111
561
122
538
77
893
920
3,182
649
127
264
119
1,046
978
3,140
698
132
329
124
895
%2
3,330
893
133
420
136
816
932
3,130
857
128
409
99
695
943
64 Other countries
Australia
65
66
All other
1,419
1,223
196
6,143
5,904
239
8,053
7,857
196
7,979
7,742
237
7,451
7,197
255
7,315
7,095
220
7,023
6,803
220
6,925
6,685
240
6,608
6,316
292
6,388
6,095
294
67 Nonmonetary international and regional
organizations
International
Latin American regional
Other regional5
2,721
1,661
710
350
4,922
4,049
517
357
5,957
5,273
419
265
4,759
4,174
433
152
6,831
6,189
457
186
6,243
5,426
451
366
6,356
5,641
419
296
5,316
4,741
428
146
5,055
4,436
438
180
5,344
5,130
41
173
45
46
47
48
49
50
51
52
53
54
55
56
68
69
70
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."
A Liabilities and claims of banks in the United States were increased, beginning
in December 1981, by the shift from foreign branches to international banking
facilities in the United States of liabilities to, and claims on, foreign residents.
Nonbank-Reported
3.18
Data
A57
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1984
Area and country
1981A
1982
1983
Feb.
Jan.
I Total
2 Foreign countries
3 Europe
4 Austria
5 Belgium-Luxembourg
6 Denmark
7 Finland
8
France
9 Germany
in
Greece
Italy
ii
i?
Netherlands
13 Norway
14 Portugal
IS
Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
Other Western Europe 1
21
U.S.S.R
??
23 Other Eastern Europe 2
251,589
355,705
Mar.
Apr.
May
June
July
389,329
373,493
377,732
385,029
387,429
399,049'
408,323
402,851
377,568
384,879
387,355
398,846'
408,209
402,634
91,4%
414
6,182
1,244
952
8,314
1,047
549
7,904
1,319
645
944
3,280
3,356
1,302
933
49,219
1,702
547
169
1,475
91,836
449
5,970
1,283
931
8,388
1,098
694
8,161
1,309
638
908
3,347
3,528
1,447
958
48,800
1,706
499
181
1,540
95,959
679
6,238
1,197
1,021
8,734
1,502
830
8,286
2,329
705
1,079
3,719
3,646
1,844
1,019
49,051
1,694
651
174
1,562
97,994'
456
6,626
1,118
1,041
9,029
1,111
940
7,901
1,787
719
1,146
3,700
2,957
1,570
1,002
52,850
1,719
565
154
1,602
103,846
632
6,734
1,212
1,100
9,393
1,175
1,036
8,556
1,781
729
1,463
3,792
3,206
1,904
1,160
55,744
1,808
571
175
1,675
101,173
646
6,057
1,200
938
9,673
1,121
979
8,317
1,811
648
1,291
3,941
2,717
1,520
1,238
54,812
1,682
810
155
1,619
251,533
355,636
389,166
373,429
49,262
121
2,849
187
546
4,127
940
333
5,240
682
384
529
2,095
1,205
2,213
424
23,849
1,225
211
377
1,725
85,584
229
5,138
554
990
7,251
1,876
452
7,560
1,425
572
950
3,744
3,038
1,639
560
45,781
1,430
368
263
1,762
91,416
401
5,639
1,275
1,044
8,766
1,294
476
9,018
1,302
690
939
3,583
3,358
1,856
812
47,025
1,673
477
192
1,598
90,578
354
5,942
1,301
945
7,998
1,058
508
7,899
1,407
652
954
3,391
3,373
1,452
814
48,621
1,718
493
162
1,537
9,193
13,678
16,336
15,881
15,984
17,233
17,065
17,879'
17,524
18,450
138,347
7,527
43,542
346
16,926
21,981
3,690
2,018
3
1,531
124
62
22,439
1,076
6,794
1,218
157
7,069
1,844
187,969
10,974
56,649
603
23,271
29,101
5,513
3,211
3
2,062
124
181
29,552
839
10,210
2,357
686
10,643
1,991
204,053
11,740
58,808
566
24,482
35,232
6,038
3,745
0
2,307
129
215
34,705
1,154
7,848
2,536
977
11,287
2,283
194,811
11,746
53,084
644
24,828
31,558
6,163
3,695
0
2,367
189
218
34,565
971
7,847
2,467
982
11,255
2,232
197,398
11,751
53,278'
409
24,928
33,188
6,286
3,536
0
2,350
126
219
34,685
1,043
8,794
2,415
908
11,183
2,298
201,810
11,626
57,169
532
25,697
33,157
6,131
3,667
0
2,334
128
210
34,593
1,245
8,367
2,453
924
11,142
2,436
201,573
11,427
56,958
614
25,926
33,893
6,085
3,649
4
2,335
129
227
34,575
1,149
7,679
2,380
923
11,105
2,514
209,822'
11,071
61,526
845
25,865
36,788
6,146
3,524
0
2,332
127
242
35.30C
1,164'
7,99C
2,438
887
11,019
2,557'
209,417
11,162
59,437
559
26,226
37,431
6,490
3,559
21
2,373
125
216
35,806
1,312
7,843
2,473
950
11,174
2,260
207,990
11,360
57,242
585
25,810
38,419
6,598
3,488
0
2,356
140
218
35,264
1,350
8,402
2,477
959
10,857
2,466
49,851
60,952
67,802
62,876
62,746
64,347
63,004
63,546
67,585
64,958
107
2,461
4,132
123
352
1,567
26,797
7,340
1,819
565
1,581
3,009
214
2,288
6,787
222
348
2,029
28,379
9,387
2,625
643
3,087
4,943
292
1,908
8,429
330
805
1,832
30,564
9,889
2,099
1,099
4,954
5,599
420
1,810
8,129
344
853
1,556
27,333
9,600
2,408
1,091
4,637
4,696
337
1,710
8,030
253
899
1,478
27,845
9,513
2,357
1,109
4,264
4,952
364
1,657
7,470
337
935
1,607
28,688
9,676
2,371
999
5,039
5,203
428
1,654
7,921
372
911
1,846
26,173
10,259
2,359
1,014
5,122
4,945
348
1,585
7,448
362
983
1,822
27,147
9,565
2,404
1,139
5,208
5,535
554
2,202
8,146
355
%9
1,910
29,274
9,651
2,495
949
5,093
5,986
641
2,000
6,838
322
948
1,809
27,898
9,683
2,586
970
5,189
6,072
57 Africa
58 Egypt
59
Morocco
60
South Africa
61
Zaire
Oil-exporting countries 5
62
Other
63
3,503
238
284
1,011
112
657
1,201
5,346
322
353
2,012
57
801
1,802
6,654
747
440
2,634
33
1,073
1,727
6,571
738
450
2,684
29
1,037
1,631
7,226
712
481
2,928
16
1,124
1,964
6,919
744
484
2,989
13
1,029
1,661
6,645
698
486
2,908
26
1,000
1,526
6,764'
666
561
2,974
28
%7
1,568'
6,840
734
497
3,065
39
1,004
1,502
7,029
638
548
3,306
43
1,025
1,469
64 Other countries
65
Australia
66 All other
1,376
1,203
172
2,107
1,713
394
2,904
2,276
627
2,712
2,105
607
2,718
2,048
670
2,734
2,007
727
3,109
2,489
620
2,942
2,345
597
2,9%
2,435
561
3,033
2,479
554
56
68
164
64
164
150
74
103
114
217
24 Canada
75 Latin America and Caribbean
76 Argentina
Bahamas
77
78 Bermuda
29 Brazil
30
British West Indies
31
Chile
3?
Colombia
33 Cuba
34 Ecuador
35 Guatemala 3
36 Jamaica 3
37
Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41
Uruguay
Venezuela
47
43 Other Latin America and Caribbean
44
4S
46
47
48
49
50
51
5?
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."
NOTE. Data for period before April 1978 include claims of banks' domestic
customers on foreigners.
A Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
A58
International Statistics • September 1984
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
1984
Type of claim
1981A
1982
1983
Jan.
Feb.
373,493
58,248
139,476
115,225
43,105
72,120
60,544
377,732
57,349
141,717
116,877
44,742
72,135
61,788
Mar.
Apr.
May'
June
July
1 Total
287,557
396,015
424,232
2
3
4
5
6
7
8
251,589
31,260
96,653
74,704
23,381
51,322
48,972
355,705
45,422
127,293
121,377
44,223
77,153
61,614
389,329
57,500
144,964
123,344
47,005
76,338
63,522
35,968
1,378
40,310
2,491
34,903
2,969
36,185
3,660
36,562
3,502
26,352
30,763
26,064
25,992
25,698
8,238
7,056
5,870
6,533
7,362
29,952
38,153
37,820
36,984
42,627
40,369
42,358
44,994
Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices1
Unaffiliated foreign banks
Deposits
Other
All other foreigners
9 Claims of banks' domestic customers 2
10 Deposits
11 Negotiable and readily transferable
instruments 3
12 Outstanding collections and other
claims
421,214
385,029
57,731
146,467
119,496
45,364
74,132
61,335
444,885
387,429
58,041
145,865
121,472
45,068
76,403
62,051
399,049
58,069
155,694
123,417
47,066
76,351
61.869
408,323
59,266
157,805
128,994
49,705
79,289
62,258
402,851
59,717
154,742
125,473
48,509
76,964
62,918
13 MEMO: Customer liability on
Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 4 . . .
45,688r
1. U.S. banks: includes amounts due from own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due from head office or parent foreign bank,
and foreign branches, agencies, or wholly owned subsidiaries of head office or
parent foreign bank.
2. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the account
of their domestic customers.
3. Principally negotiable time certificates of deposit and bankers acceptances.
3.20
48,023'
46,979'
48,425'
47,596
43,797
n.a.
4. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see July 1979 BULLETIN,
p. 550.
• Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
NOTE. Beginning April 1978, data for banks' own claims are given on a monthly
basis, but the data for claims of banks' own domestic customers are available on a
quarterly basis only.
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1983
Maturity; by borrower and area
1980
1981 A.
1984
1982
Sept.
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 1
Foreign public borrowers . . . .
All other foreigners
Maturity of over 1 year 1
Foreign public borrowers . . . .
All other foreigners
By area
Maturity of 1 year or less1
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 2
Maturity of over 1 year 1
Europe
Canada
Latin America and Caribbean
Asia
Africa
Allother 2
1. Remaining time to maturity.
2. Includes nonmonetary international and regional organizations.
Dec.
Mar.
June p
106,748
154,590
228,150
237,217
243,602
235,501
249,765
82,555
9,974
72,581
24,193
10,152
14,041
116,394
15,142
101,252
38,197
15,589
22,608
173,917
21,256
152,661
54,233
23,137
31,095
176,258
25,563
150,695
60,958
28,284
32,674
176,623
24,455
152,168
66,979
32,478
34,501
161,864
20,656
141,208
73,637
35,825
37,812
172,227
21,028
151,199
77,537
37,788
39,750
18,715
2,723
32,034
26,686
1,757
640
28,130
4,662
48,717
31,485
2,457
943
50,500
7,642
73,291
37,578
3,680
1,226
53,499
6,652
76,396
33,686
4,570
1,454
56,078
6,206
73,974
34,569
4,206
1,589
53,167
6,566
65,082
31,238
4,472
1,340
59,208
6,940
64,842
34,807
4,782
1,647
5,118
1,448
15,075
1,865
507
179
8,100
1,808
25,209
1,907
900
272
11,636
1,931
35,247
3,185
1,494
740
12,358
1,760
39,150
4,735
1,819
1,136
13,354
1,857
43,561
4,828
2,278
1,101
13,068
2,035
49,907
5,131
2,291
1,206
12,839
2,206
54,289
5,107
1,859
1,237
• Liabilities and claims of banks in the United States were increased,
beginning in December 1981, by the shift from foreign branches to international
banking facilities in the United States of liabilities to, and claims on, foreign
residents.
Nonbank-Reported
3.21
Data
A59
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks'
Billions of dollars, end of period
1982
Area or country
1979
1980
1984
1983
1981
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
June 7 ?
303.9
352.0
415.2
438.4
438.7
441.1
437.4
430.2'
436.0'
431.3'
429.2
138.4
11.1
11.7
12.2
6.4
4.8
2.4
4.7
56.4
6.3
22.4
162.1
13.0
14.1
12.1
8.2
4.4
2.9
5.0
67.4
8.4
26.5
175.5
13.3
15.3
12.9
9.6
4.0
3.7
5.5
70.1
10.9
30.2
175.4
13.6
15.8
12.2
9.7
3.8
4.7
5.1
70.3
11.0
29.3
179.7
13.1
17.1
12.7
10.3
3.6
5.0
5.0
72.1
10.4
30.2
182.2
13.7
17.1
13.5
10.2
4.3
4.3
4.6
72.9
12.5
29.2
176.9
13.3
17.1
12.6
10.5
4.0
4.7
4.8
70.3
10.8
28.7
168.9'
12.6
16.2
11.6
10.0
3.6
4.9
4.2
67.6'
9.0
29.2'
167.9'
12.4
16.3
11.3
11.4
3.5
5.1
4.3
65.1'
8.3
30.1
165.1'
11.0
15.9
11.7
11.2
3.3'
5.2
4.2
64.2'
8.6
30.0
156.1
10.4
14.2
11.0
11.5
3.0
4.3
4.2
59.2
8.8
29.5
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
19.9
2.0
2.2
1.2
2.4
2.3
.7
3.5
1.4
1.4
1.3
1.3
21.6
1.9
2.3
1.4
2.8
2.6
.6
4.4
1.5
1.7
1.1
1.3
28.4
1.9
2.3
1.7
2.8
3.1
1.1
6.6
1.4
2.1
2.8
2.5
32.7
2.0
2.5
1.8
2.6
3.4
1.6
7.7
1.5
2.1
3.6
4.0
33.7
1.9
2.4
2.2
3.0
3.3
1.5
7.5
1.4
2.3
3.7
4.4
34.0
2.1
3.3
2.1
2.9
3.3
1.4
7.1
1.5
2.3
3.6
4.6
34.4
2.1
3.4
2.1
2.9
3.4
1.4
7.2
1.4
2.0
3.9
4.6
34.2
1.9
3.3
1.8
2.9
3.2
1.3
7.2
1.5
2.1
4.7
4.4
35.9
1.9
3.4
2.4
2.8
3.3
1.3
7.1
1.7
1.8
4.7
5.5
35.5
2.0
3.4
2.1
3.0
3.2
1.1
7.1
1.9
1.8
4.8
5.2
37.1
2.0
3.1
2.3
3.3
3.2
1.7
7.3
2.0
1.9
4.7
5.7
25 OPEC countries 2
26 Ecuador
27 Venezuela
28 Indonesia
29 Middle East countries
30 African countries
22.9
1.7
8.7
1.9
8.0
2.6
22.7
2.1
9.1
1.8
6.9
2.8
24.8
2.2
9.9
2.6
7.5
2.5
27.3
2.3
10.4
2.9
9.0
2.7
27.4
2.2
10.5
3.2
8.7
2.8
28.5
2.2
10.4
3.5
9.3
3.0
28.3
2.2
10.4
3.2
9.5
3.0
27.2
2.1
9.8
3.4
9.1
2.8
28.9
2.2
9.9
3.8
10.0
3.0
28.6'
2.1
9.7
4.0
9.8
3.0
26.7
2.1
9.5
4.1
8.4
2.7
31 Non-OPEC developing countries
63.0
77.4
96.3
104.1
107.1
107.7
108.3
109.4'
111.1'
111.6'
114.8
5.0
15.2
2.5
2.2
12.0
1.5
3.7
7.9
16.2
3.7
2.6
15.9
1.8
3.9
9.4
19.1
5.8
2.6
21.6
2.0
4.1
9.2
22.4
6.2
2.8
25.0
2.6
4.3
8.9
22.9
6.3
3.1
24.5
2.6
4.0
9.0
23.1
6.0
2.9
25.1
2.4
4.2
9.4
22.6
5.8
3.2
25.2
2.6
4.3
9.5
22.9
6.2
3.2
25^
2.4
4.2
9.5
22.9
6.4
3.2
26.0
2.4
4.2
9.5
24.9
6.5'
3.1
25.4'
2.3
4.4
9.2
25.4
6.7
3.0
27.7
2.3
4.1
1 Total
2 G-10 countries and Switzerland
3 Belgium-Luxembourg
4 France
5 Germany
6
Italy
7
Netherlands
8
Sweden
9
Switzerland
10 United Kingdom
11 Canada
12 Japan
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.1
3.4
.2
1.3
5.4
1.0
4.2
1.5
.5
.2
4.2
.3
1.5
7.1
1.1
5.1
1.6
.6
.2
5.1
.3
2.1
9.4
1.7
6.0
1.5
1.0
.2
4.9
.5
1.9
9.4
1.8
6.1
1.3
1.3
.2
5.3
.6
2.3
10.9
2.1
6.3
1.6
1.1
.2
5.1
.4
2.0
10.9
2.5
6.6
1.6
1.4
.2
5.1
.5
2.3
10.8
2.6
6.4
1.8
1.2
.2
5.2
.8'
1.7
lO^
2.8
6.2
1.7
1.0
.3
5.3
1.0'
1.9'
11.3
2.9
6.2
2.1'
1.0
.3'
4.9'
1.0
1.6
11.1
2.8
6.6'
1.9
.9
.6
5.8
1.0
1.9
11.2
2.7
6.3
1.8
1.1
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 3
.6
.6
.2
1.7
.8
.7
.2
2.1
1.1
.7
.2
2.3
1.3
.8
.1
2.2
1.2
.7
.1
2.4
1.1
.8
.1
2.3
1.3
.8
.1
2.2
1.4
.8
.1
2.4
1.5'
.8
.1
2.3
1.5'
.8
.1
2.2
1.4
.8
.1
1.9
52 Eastern Europe
53
U.S.S.R
54
Yugoslavia
55
Other
7.3
.7
1.8
4.8
7.4
.4
2.3
4.6
7.8
.6
2.5
4.7
6.3
.3
2.2
3.8
6.2
.3
2.2
3.7
5.7
.3
2.2
3.2
5.7
.4
2.3
3.0
5.3
.2
2.3
2.8
5.3
.2
2.3
2.8
4.9
.2
2.2
2.5
4.9
.2
2.3
2.5
56 Offshore banking centers
57 Bahamas
58
Bermuda
59 Cayman Islands and other British West Indies
60
Netherlands Antilles
61
Panama 4
62
Lebanon
63
Hong Kong
64
Singapore
65
Others 5
40.4
13.7
.8
9.4
1.2
4.3
.2
6.0
4.5
.4
47.0
13.7
.6
10.6
2.1
5.4
.2
8.1
5.9
.3
63.7
19.0
.7
12.4
3.2
7.7
.2
11.8
8.7
.1
72.2
21.4
.8
13.6
3.3
8.1
.1
15.1
9.8
.0
66.8
19.0
.9
12.9
3.3
7.6
.1
13.9
9.2
.0
66.2
17.4
1.0
12.0
3.1
7.1
.1
15.1
10.3
.0
67.6
19.6
.8
12.2
2.6
6.6
.1
14.6
11.0
.0
68.3'
21.1'
.8
10.7'
4.1
5.7
.1
15.1
10.5
.1
70.1'
21.2'
.9
12.4'
4.2
6.0
.1
14.9
10.3'
.0
69.3'
23.7'
.7
11.(K
3.3'
6.3
.1
14.4'
9.9'
.0
72.3
26.5
.7
11.7
3.3
6.4
.1
13.5
10.1
.0
66 Miscellaneous and unallocated 6
11.7
14.0
18.8
20.4
17.9
16.8
16.1
16.9-
17.0
16.4'
17.3
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. Besides the Organization of Petroleum Exporting Countries shown individually, this group includes other members of OPEC (Algeria, Gabon, Iran, Iraq,
Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as well
as Bahrain and Oman (not formally members of OPEC).
3. Excludes Liberia.
4. Includes Canal Zone beginning December 1979.
5. Foreign branch claims only.
6. Includes New Zealand, Liberia, and international and regional organizations.
7. 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.
A60
International Statistics • September 1984
3.22
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions of dollars, end of period
1983
Type, and area or country
1980
1984
1982
1981
Mar.
June
Sept.
Dec.
Mar.P
1 Total
29,434
28,618
25,663
23,450
22,846
24,762
23,791
27,958
2 Payable in dollars
3 Payable in foreign currencies
25,689
3,745
24,909
3,709
22,470
3,193
20,459
2,991
19,922
2.924
21,895
2,867
20,715
3,076
24,677
3,282
4 Financial liabilities
5 Payable in dollars
Payable in foreign currencies
6
11,330
8,528
2,802
12,157
9,499
2,658
11,001
8,829
2,172
10,996
8,952
2,044
11.181
9,120
2,061
10,946
8.976
1.971
10,504
8,646
1,858
14,129
12.037
2,092
7 Commercial liabilities
8 Trade payables
9 Advance receipts and other liabilities
18,104
12,201
5,903
16,461
10,818
5,643
14,662
7,707
6,955
12,454
5,627
6,827
11,665
6,026
5,640
13,815
7,056
6,760
13,286
6,615
6,672
13,829
6,758
7,071
17,161
943
15,409
1,052
13,641
1,021
11,507
947
10,802
864
12,919
896
12,069
1,218
12,639
1,190
6,481
479
327
582
681
354
3,923
6,825
471
709
491
748
715
3,565
6,438
557
731
470
711
753
3,075
6,319
459
725
487
699
710
3,097
6,337
482
756
460
728
629
3,108
6,027
379
785
454
730
530
2,992
5,721
302
820
498
581
486
2,885
7,041
426
933
524
532
641
3,835
By
10
11
type
Payable in dollars
Payable in foreign currencies
By area
12
13
14
15
16
17
18
or
country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
964
963
746
733
876
788
768
798
3,136
964
1
23
1,452
99
81
3,356
1,279
7
22
1,241
102
98
2,749
904
14
28
1,025
121
114
2,787
857
18
39
1,053
149
121
2,623
776
10
34
1,033
151
124
2,709
771
13
32
1,023
185
117
2,592
749
13
32
1,003
215
124
4,858
1.411
51
37
2,595
245
121
723
644
38
976
792
75
1,039
715
169
1,124
781
168
1,319
943
205
1,388
957
201
1,396
962
170
1,404
1,013
170
Africa
Oil-exporting countries 3
11
1
14
0
17
0
20
0
17
0
19
0
18
0
19
0
All other 4
15
24
12
13
9
15
10
9
4,402
90
582
679
219
499
1,209
3,770
71
573
545
220
424
880
3,649
52
597
467
346
363
850
3,443
45
578
455
351
354
679
3,368
41
617
439
342
357
633
3,384
47
506
461
243
448
786
3,153
62
437
427
268
241
637
3,354
40
481
416
259
413
734
888
897
1,490
1,433
1,465
1,407
1,841
1,789
1,300
8
75
111
35
367
319
1,044
2
67
67
2
340
276
1,008
16
89
60
32
379
165
1,066
4
117
51
4
355
198
1024
1
76
49
22
399
236
1,067
1
76
48
14
429
217
1,125
1
67
44
6
536
180
1,426
14
144
68
33
619
254
10,242
802
8,098
9,384
1,094
7,008
7,160
1,226
4,531
5,437
1,235
2,803
4,799
1,236
2,294
6,852
1,294
4,072
6,032
1,247
3,498
5,961
1,291
3,209
19
Canada
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
27
28
29
Asia
Japan
Middle East oil-exporting countries 2
30
31
32
33
34
35
36
37
38
39
40
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
48
49
50
Asia
Japan
Middle East oil-exporting countries 2 5
51
52
Africa
Oil-exporting countries 3
817
517
703
344
704
277
497
158
492
167
506
204
442
157
539
243
53
All other 4
456
664
651
578
518
600
692
760
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.
Nonbank-Reported
3.23
CLAIMS ON UNAFFILIATED FOREIGNERS
United States'
Millions of dollars, end of period
Data
Reported by Nonbanking Business Enterprises in the
1984
1983
Type, and area or country
1982
1981
1980
A61
Mar.
Sept.
June
Dec.
Mar.P
1 Total
34,482
36,185
28,483
31,230
31,505
31,656
34,083
32,426
? Payable in dollars
31,528
2,955
32,582
3,603
25,851
2,632
28,510
2,720
28,849
2,656
28,780
2,877
31,077
3,006
29,519
2,908
By type
4 Financial claims
s
Deposits
Payable in dollars
7
Payable in foreign currencies
8
Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
19,763
14,166
13,381
785
5,597
3,914
1,683
21,142
15,081
14,456
625
6,061
3,599
2,462
17,501
12,965
12.534
430
4.536
2,895
1,641
20,261
15,610
15,130
480
4,651
3,006
1,645
20,896
16,072
15,632
439
4,824
3,226
1,598
20,831
15,987
15,542
445
4,845
3,019
1,826
22,978
17,911
17,415
497
5,067
3,165
1,902
21,579
16.495
16.066
428
5,084
3,277
1,808
11 Commercial claims
1?
Trade receivables
13
Advance payments and other claims
14,720
13,960
759
15,043
14,007
1,036
10,982
9,973
1,010
10,969
9,765
1,203
10,609
9,241
1,367
10,825
9,526
1,299
11,105
9,695
1,410
10,847
9,540
1,307
14
15
14,233
487
14,527
516
10,422
561
10,374
595
9,991
618
10,219
606
10,498
607
10,176
671
6,069
145
298
230
51
54
4,987
4,596
43
285
224
50
117
3,546
4,868
10
134
178
97
107
4,064
6,229
58
98
127
140
107
5,434
6,847
12
140
216
136
37
6,058
6,202
25
135
151
89
34
5,547
6,374
37
130
129
49
38
5,768
6,446
30
145
121
57
90
5,783
3 Payable in foreign currencies
16
17
IX
19
70
71
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
5,036
6,755
4,287
4,613
4,885
4,958
5,836
5,577
24
75
26
71
28
79
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
7,811
3,477
135
96
2,755
208
137
8,812
3,650
18
30
3,971
313
148
7,458
3,265
32
62
3,171
274
139
8,527
3,811
21
50
3,408
352
156
8,089
3,291
92
48
3,447
348
152
8,609
3,389
62
49
3,932
315
137
9,767
4,732
96
53
3,801
291
134
8,467
3,233
3
87
4,243
279
130
31
32
33
Asia
Japan
Middle East oil-exporting countries 2
607
189
20
758
366
37
698
153
15
712
233
18
771
288
14
764
257
8
709
242
4
776
333
7
34
35
Africa
Oil-exporting countries 3
208
26
173
46
158
48
153
45
154
48
151
45
147
55
144
42
32
48
31
25
149
148
145
169
5,544
233
1,129
599
318
354
929
5,405
234
776
561
299
431
985
3,777
150
473
356
347
339
808
3,594
140
489
424
309
227
754
3,410
144
499
364
242
303
739
3,349
131
486
381
282
270
734
3,678
142
459
348
333
317
809
3,623
188
413
363
308
336
786
36
^7
38
39
40
41
47
43
All other 4
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
914
967
632
648
716
788
829
1,052
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
3,766
21
108
861
34
1,102
410
3,479
12
223
668
12
1,022
424
2,521
21
259
258
12
774
351
2,699
30
172
402
21
894
288
2,722
30
108
512
21
956
273
2,864
15
242
611
12
897
282
2,695
8
190
493
7
884
272
2,420
8
216
357
7
745
268
5?
S3
54
Asia
Japan
Middle East oil-exporting countries 2
3,522
1,052
825
3,959
1,245
905
3,048
1,047
751
3,128
1,115
702
2,871
949
700
2,936
1,037
719
3,041
1,092
737
2,994
1,200
701
55
56
Africa
Oil-exporting countries 3
653
153
772
152
588
140
559
131
528
130
562
131
585
139
497
133
57
All other 4
321
461
417
342
361
326
277
261
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.
A62
3.24
International Statistics • September 1984
F O R E I G N T R A N S A C T I O N S IN S E C U R I T I E S
Millions of dollars
1984
Transactions, and area or country
1982
1984
1983
Jan.July
Jan.
Feb.
Mar.
Apr.
May
June
July"
U.S. corporate securities
STOCKS
1 Foreign purchases
2 Foreign sales
41,881
37,981
69,770
64,360
35,241
35,717
5,438
5,799
6,234
5,823
3 Net purchases, or sales (—)
3,901
5,410
-477
-361
411
4 Foreign countries
3,816
5,312
-456
-350
480
2,530
-143
333
-63
-579
3,117
222
317
366
247
2
131
3,979
-97
1,045
-109
1,325
1,799
1,151
529
-807
394
42
24
-687
-83
242
-138
-385
-399
1,065
267
-1,098
-17
10
5
-168
-72
95
1
-92
-94
83
124
-361
-48
5
16
147
-97
116
1
282
-168
323
43
-44
36
10
-34
85
98
-21
-11
21,639
20,188
24,049
23,092
14,664
13,304
5
6
7
8
9
10
11
12
13
14
15
16
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
17 Nonmonetary international and
regional organizations
6,101
5,599
4,510
4,189
5,048
5,494
4,552
4,899
3,358
3,914
502
321
-446
-347
-556
470
320
-454
-357
-565
329
-4
151
32
-3
125
300
14
-197
33
-7
-1
208
38
-43
-15
90
137
73
25
-58
66
5
2
-281
100
-40
-47
-220
-80'
-61
82
-168
-28
-4
6
-317
-3
2
-76
-120
-179
158
38
-215
-27
3
2
-605
-45
-38
-34
-322
-140
188
-58
-55
-49
-2
16
-70
32
1
8
10
9
1,834
1,773
2,113
1,943
2,200
2,074
1,701
1,857
1,619'
1,442
2,004
1.795
3,194
2,420
BONDS2
18 Foreign purchases
19 Foreign sales
20 Net purchases, or sales (—)
1,451
957
1,360
61
170
126
-156
178'
208
774
21 Foreign countries
1,479
942
1,227
72
82
183
-224
212'
169
733
22
23
24
25
26
27
28
29
30
31
32
33
2,082
305
2,110
33
157
-589
24
159
-752
-22
-19
7
961
-89
347
51
632
434
123
100
-1,159
865
0
52
870
25
602
38
-101
-122
-109
162
-436
738
1
2
72
-1
-37
3
12
127
1
9
-26
18
-1
0
-55
-5
-32
25
-102
101
-10
16
58
75
0
-2
-15
-1
117
9
-45
-58
-23
18
30
170
0
3
21
-5
68
-12
-22
-239
-77
-8
-263
102
1
1
85
0
107
-1
8
-59
3
13R
11
100
0
0
273
4
122
11
35
87
32
15
-287
135
0
0
490
33
257
3
13
-71
-35
99
40
138
0
1
-28
15
133
87
-57
67
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
34 Nonmonetary international and
regional organizations
-11
-34
40
41
Foreign securities
35 Stocks, net purchases, or sales ( - )
36
Foreign purchases
37
Foreign sales
-1,341
7,163
8,504
-3,765
13,281
17,046
501
8,688
8,187
-114
1,215
1,329
345
1,487
1,142
145
1,575
1,429
-18
1,242
1,260
70'
1,163'
1,092
-40
1,110
1,150
113
897
785
38 Bonds, net purchases, or sales ( - )
39
Foreign purchases
40
Foreign sales
-6,631
27,167
33,798
-3,651
35,922
39,572
-423
31,390
31,813
267
3,424
3,157
-72
3,903
3,975
77
4,985
4,907
-399
3,812
4,211
-641'
5,155'
5,797
246
5,307
5,061
99
4,803
4,704
41 Net purchases, or sales ( - ) , of stocks and bonds . . . .
42
43
44
45
46
47
48
49
Foreign countries
Europe
Canada
Latin America and Caribbean
Asia
Africa
Other countries
Nonmonetary international and
regional organizations
-7,972
-7,416
78
153
273
223
-417
-571'
206
211
-6,806
-2,584
-2,363
336
-1,822
-9
-364
-6,971
-5,866
-1,344
1,120
-855
141
-166
-217
-3,648
459
1,681
1,382
-72
-19
124
-34
14
114
33
-5
2
241
-404
185
188
282
-11
1
138
-236
117
49
220
-10
-3
-415
-537
-187
126
187
-4
0
-646'
-1,524'
38
602
243
-16
12
192
-466
122
466
80
-4
-6
149
-447
171
136
336
-21
-25
-1,165
-445
295
28
32
85
-2
74
15
62
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 securities sold abroad by U.S. corporations organized to finance direct investments
abroad.
Investment
3.25
MARKETABLE U.S. TREASURY BONDS AND NOTES
Millions of dollars
Transactions
and Discount Rates
Foreign Holdings and Transactions
1984
1984
1983
1982
Country or area
A63
Jan.July
Feb.
Jan.
Mar.
Apr.
May r
June
July P
Holdings (end of period) 1
1 Estimated total 2
85,220
88,932
89,645
90,206
89,656
92,005
93,412
93,339
80,637
83,818
84,534
84,382
84,383
85,408
85,791
86,804
88,001
3 Europe
4
Belgium-Luxembourg
5
Germany 2
6
Netherlands
7
Sweden
8
Switzerland 2
9
United Kingdom
10
Other Western Europe
11
Eastern Europe
12 Canada
29,284
447
14,841
2,754
677
1,540
6,549
2,476
0
602
35,509
16
17,290
3,129
847
1,118
8,515
4,594
0
1,301
36,009
33
17,581
3,113
878
1,167
8,701
4,536
0
1,298
37,319
50
18,527
3,052
898
1,206
8,587
5,000
0
1,310
37,226
57
18,834
3,023
945
1,256
8,406
4,707
0
1,090
37,787
91
19,201
3,117
949
1,241
8,411
4,776
0
1,299
38,383
61
19,649
2,979
954
1,403
8,647
4,691
-1
1,308
39,287
135
19,735
3,014
940
1,752
9,191
4,520
-1
1,415
40,379
138
19,627
3,120
957
2,021
9,439
5,079
-1
1,446
13
14
15
16
17
18
19
20
1,076
188
656
232
49,543
11,578
77
55
863
64
716
83
46,026
13,911
79
38
1,426
64
696
665
45,690
14,013
79
31
840
64
574
201
44,811
14,351
78
23
563
64
504
-6
45,401
14,334
82
21
572
65
453
53
45,610
14,547
85
57
962
65
546
351
44,973
14,871
88
77
862
75
490
297
45,075
15,361
88
77
319
75
592
-347
45,661
15,746
88
108
4,583
4,186
6
5,114
4,404
6
5,111
4,467
6
5,824
5,139
6
5,273
4,614
6
6,597
5,936
6
7,621
6,946
6
6,535
5,860
6
6,962
6,241
6
2 Foreign countries
2
2
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
All other
21 Nonmonetary international and regional organizations
22
International
23
Latin American regional
94,963
Transactions (net purchases, or sales ( - ) during period)
24 Total 2
14,972
25 Foreign countries
26
Official institutions
27
Other foreign 2
28 Nonmonetary international and regional organizations
MEMO: Oil-exporting countries
29 Middle East 3
30 Africa 4
3,711
6,032
713
561
-550
2,348
1,407
-73
1,624
16,072
14,550
1,518
-1,097
3,180
779
2,400
535
4,183
623
3,562
1,845
716
539
178
-4
-152
8
-159
712
1
476
-475
-551
1,025
622
403
1,322
382
-358
740
1,026
1,013
-873
1,887
-1,087
1,197
209
988
427
7,575
-552
2
-5,419
-1
-3,238
0
-515
0
-829
0
46
0
-678
0
-1,037
0
67
0
-291
0
1. Estimated official and private holdings of marketable U.S. Treasury securities with an original maturity of more than 1 year. Data are based on a benchmark
survey of holdings as of Jan. 31, 1971, and monthly transactions reports. Excludes
nonmarketable U.S. Treasury bonds and notes held by official institutions of
foreign countries.
3.26
2. Beginning December 1978, includes U.S. Treasury notes publicly issued to
private foreign residents denominated in foreign currencies.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Rate on Aug. 31, 1984
Rate on Aug. 31, 1984
Country
Percent
Austria..
Belgium .
Brazil...
Canada..
Denmark
4.5
11.0
49.0
12.39
7.0
Percent
Month
effective
June
Feb.
Mar.
Aug.
Oct.
1984
1984
1981
1984
1983
France 1
Germany, Fed. Rep. of
Italy
Japan
Netherlands
1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts
Rate on Aug. 31, 1984
Country
Country
Month
effective
11.25
4.5
15.5
5.0
5.0
July 1984
June 1984
May 1984
Oct. 1983
Sept. 1983
Percent
Norway
Switzerland
United Kingdom 2 .
Venezuela
Month
effective
8.0
4.0
June 1979
Mar. 1983
May 1983
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.
A64
3.27
International Statistics • September 1984
F O R E I G N SHORT-TERM I N T E R E S T RATES
Percent per annum, averages of daily figures
1984
C o u n t r y , or type
1981
1982
1983
Feb.
1
2
3
4
5
Mar.
Apr.
May
June
July
Aug.
Eurodollars
United Kingdom
Canada
Germany
Switzerland
12.24
12.21
14.38
8.81
5.04
9.57
10.06
9.48
5.73
4.11
9.91
9.35
9.85
5.91
3.47
10.40
8.90
10.40
5.82
3.60
10.83
8.84
10.75
5.81
3.61
11.53
9.32
11.52
6.08
3.83
11.68
9.43
11.86
6.11
4.15
12.02
11.38
13.03
6.09
4.72
11.81
11.09
12.41
6.00
4.81
Netherlands
France
Italy
Belgium
Japan
6
7
8
9
10
16.79
13.86
18.84
12.05
9.15
11.52
15.28
19.98
15.28
7.58
8.26
14.61
19.99
14.10
6.84
5.58
12.44
18.95
10.51
6.49
5.95
12.36
17.40
11.43
6.34
6.09
12.53
17.28
12.02
6.41
6.04
12.46
17.38
11.66
6.26
6.05
12.16
16.80
11.80
6.24
6.09
12.23
16.75
11.90
6.35
6.39
11.70
16.73
11.90
6.31
6.26
11.37
16.50
11.73
6.35
NOTE. Rates are for 3-month i n t e r b a n k loans e x c e p t f o r C a n a d a , finance c o m p a n y p a p e r ; Belgium, 3-month T r e a s u r y bills; and J a p a n , G e n s a k i rate.
3.28
F O R E I G N E X C H A N G E RATES
Currency units per dollar
1984
Country/currency
1981
1982
1983
Mar.
Apr.
May
June
July
Aug.
Australia/dollar 1
Austria/schilling
Belgium/franc
Brazil/cruzeiro
Canada/dollar
China, P . R . / y u a n
Denmark/krone
114.95
15.948
37.194
92.374
1.1990
1.7031
7.1350
101.65
17.060
45.780
179.22
1.2344
1.8978
8.3443
90.14
17.968
51.121
573.27
1.2325
1.9809
9.1483
95.13
18.285
53.135
1266.64
1.2697
2.0646
9.5175
92.31
18.630
54.078
1387.52
1.2796
2.0929
9.7311
90.61
19.316
55.925
1497.64
1.2944
2.1866
10.0618
88.26
19.226
55.840
1,643.81
1.3040
2.2178
10.050
83.42
19.998
57.714
1,819.00
1.3238
2.2996
10.4178
84.73
20.268
58.282
1994.30
1.3035
2.3718
10.5174
8
9
10
11
12
13
14
15
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
H o n g Kong/dollar
India/rupee
Ireland/pound 1
Israel/shekel
4.3128
5.4396
2.2631
n.a.
5.5678
8.6807
161.32
n.a.
4.8086
6.5793
2.428
66.872
6.0697
9.4846
142.05
24.407
5.5636
7.6203
2.5539
87.895
7.2569
10.1040
124.81
55.865
5.6136
8.0022
2.5973
102.40
7.7942
10.714
117.88
146.40
5.6434
8.1411
2.6474
104.89
7.8073
10.820
115.67
168.76
5.8115
8.4435
2.7484
108.37
7.8159
11.017
111.75
191.56
5.8182
8.4181
2.7397
108.85
7.8131
11.064
111.67
215.06
6.0187
8.7438
2.8492
112.40
7.8519
11.371
107.63
253.14
6.0626
8.8567
2.8856
115.11
7.8388
11.556
106.84
n.a.
16
17
18
19
20
21
22
23
24
Italy/lira
Japan/yen
Malaysia/ringgit
Mexico/peso
Netherlands/guilder
N e w Zealand/dollar 1
Norway/krone
Philippines/peso
Portugal/escudo
1138.60
220.63
2.3048
24.547
2.4998
86.848
5.7430
7.8113
61.739
1354.00
249.06
2.3395
72.990
2.6719
75.101
6.4567
8.5324
80.101
1519.30
237.55
2.3204
155.01
2.8543
66.790
7.3012
11.0940
111.610
1614.17
225.27
2.2933
172.93
2.9326
66.714
7.5028
14.186
131.70
1638.48
225.20
2.2904
179.07
2.9864
65.834
7.5992
14.257
134.46
1696.32
230.48
2.3029
198.35
3.0926
64.892
7.8100
14.262
139.85
1,694.80
233.57
2.3109
196.54
3.0882
64.205
7.8162
14.250
141.83
1,751.18
243.07
2.3385
196.63
3.2155
55.631
8.2151
n.a.
152.17
1780.47
242.26
2.3331
196.98
3.2539
49.912
8.2991
n.a.
151.02
25
26
27
28
29
30
31
32
33
34
35
Singapore/dollar
South Africa/rand 1
South K o r e a / w o n
Spain/peseta
Sri L a n k a / r u p e e
Sweden/krona
Switzerland/franc
Taiwan/Dollar
Thailand/baht
United K i n g d o m / p o u n d 1
Venezuela/bolivar
2.1053
114.77
n.a.
92.396
18.967
5.0659
1.9674
n.a.
21.731
202.43
4.2781
2.1406
92.297
731.93
110.09
20.756
6.2838
2.0327
n.a.
23.014
174.80
4.2981
2.1136
89.85
776.04
143.500
23.510
7.6717
2.1006
n.a.
22.991
151.59
10.6840
2.0893
82.10
794.51
149.68
25.177
7.7323
2.1490
40.078
23.004
145.57
13.470
2.0853
80.19
796.41
150.26
25.133
7.8444
2.1913
39.784
23.010
142.10
14.375
2.1006
78.15
801.54
154.03
25.161
8.0782
2.2680
39.716
23.010
138.94
15.661
2.1122
76.49
802.20
154.75
25.176
8.0993
2.2832
39.843
23.010
137.70
14.709
2.1473
66.52
810.96
161.37
25.223
8.3063
2.4115
39.477
23.020
132.00
13.067
2.1472
63.76
811.42
164.41
25.285
8.3489
2.4150
39.092
23.018
131.32
12.725
MEMO
United States/dollar 2
102.94
116.57
125.34
128.07
130.01
133.99
134.31
139.30
140.21
1
2
3
4
5
6
7
1. Value in U . S . cents.
2. Index of weighted-average e x c h a n g e value of U . S . dollar against c u r r e n c i e s
of o t h e r G - 1 0 countries plus Switzerland. M a r c h 1973 = 100. Weights are 1972-76
global t r a d e of each of the 10 c o u n t r i e s . Series revised as of A u g u s t 1978. F o r
description and back data, see " I n d e x of the Weighted-Average E x c h a n g e Value
of the U . S . Dollar: R e v i s i o n " on p. 700 of the August 1978 BULLETIN.
NOTE. A v e r a g e s of certified n o o n buying rates in N e w York f o r cable t r a n s f e r s .
D a t a in this table also a p p e a r in the B o a r d ' s G . 5 (405) release. F o r a d d r e s s , see
inside f r o n t c o v e r .
A65
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
RELEASES
List Published
Semiannually,
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.
with Latest Bulletin
Reference
Issue
June 1984
Anticipated schedule of release dates for periodic releases.
SPECIAL
TABLES
Published Irregularly,
Assets
Assets
Assets
Assets
Assets
Assets
Assets
Assets
and
and
and
and
and
and
and
and
Page
A83
liabilities
liabilities
liabilities
liabilities
liabilities
liabilities
liabilities
liabilities
of
of
of
of
of
of
of
of
with Latest Bulletin
commercial banks,
commercial banks,
commercial banks,
commercial banks,
U.S. branches and
U.S. branches and
U.S. branches and
U.S. branches and
Reference
March 31, 1983
June 30, 1983
September 30, 1983
December 31, 1983
agencies of foreign banks,
agencies of foreign banks,
agencies of foreign banks,
agencies of foreign banks,
March 31, 1983
June 30, 1983
September 30, 1983
December 31, 1983
August
December
March
June
August
December
March
June
1983
1983
1984
1984
1983
1983
1984
1984
A70
A68
A68
A66
A76
A74
A74
A72
A66
Federal Reserve Board of Governors
PAUL A . VOLCKER,
PRESTON M A R T I N ,
Chairman
Vice Chairman
HENRY C.
WALLICH
J. CHARLES PARTEE
OF BOARD
OFFICE OF STAFF DIRECTOR
MEMBERS
JOSEPH R . C O Y N E , Assistant
to the
Board
D O N A L D J . W I N N , Assistant
to the
Board
STEVEN M . ROBERTS, Assistant
to the
Chairman
FRANK O'BRIEN, JR., Deputy Assistant to the Board
ANTHONY F. COLE, Special Assistant to the Board
NAOMI P. SALUS, Special Assistant to the Board
FOR
MONETARY
OFFICE
POLICY
STEPHEN H . A X I L R O D , Staff
DONALD L. KOHN, Deputy
STANLEY J . S I G E L , Assistant
to the
Director
Board
OF RESEARCH
AND
to the
STATISTICS
DIVISION
MICHAEL BRADFIELD, General
Counsel
J. VIRGIL MATTINGLY, JR., Associate General
Counsel
GILBERT T. SCHWARTZ, Associate General
Counsel
RICHARD M. ASHTON, Assistant General
Counsel
NANCY P. JACKLIN, Assistant General
Counsel
MARYELLEN A. BROWN, Assistant to the General
Counsel
OFFICE
Director
Staff
NORMAND R.V. BERNARD, Special Assistant
DIVISION
LEGAL
AND FINANCIAL
OF THE
SECRETARY
WILLIAM W . WILES,
Secretary
BARBARA R . L O W R E Y , Associate
Secretary
JAMES M C A F E E , Associate
Secretary
JAMES L . K I C H L I N E ,
Director
E D W A R D C . E T T I N , Deputy
Director
M I C H A E L J . P R E L L , Deputy
Director
JOSEPH S . Z E I S E L , Deputy
Director
JARED J . E N Z L E R , Associate
Director
ELEANOR J . S T O C K W E L L , Associate
Director
DAVID E . LINDSEY, Deputy Associate
HELMUT F. WENDEL, Deputy Associate
Director
Director
M A R T H A B E T H E A , Assistant
Director
ROBERT M . F I S H E R , Assistant
Director
SUSAN J . L E P P E R , Assistant
Director
THOMAS D . SIMPSON, Assistant
Director
L A W R E N C E S L I F M A N , Assistant
Director
STEPHEN P . TAYLOR, Assistant
Director
PETER A . T I N S L E Y , Assistant
Director
L E V O N H . G A R A B E D I A N , Assistant
Director
(Administration)
DIVISION OF
CONSUMER
AND COMMUNITY
AFFAIRS
GRIFFITH L . GARWOOD,
Director
JERAULD C . K L U C K M A N , Associate
Director
G L E N N E . L O N E Y , Assistant
Director
DOLORES S . S M I T H , Assistant
Director
DIVISION
DIVISION
ROBERT F . G E M M I L L , Staff
Adviser
SAMUEL P I Z E R , Staff
Adviser
PETER H O O P E R , I I I , Assistant
Director
D A V I D H . H O W A R D , Assistant
Director
R A L P H W . S M I T H , J R . , Assistant
Director
OF
SUPERVISION
BANKING
AND
REGULATION
JOHN E . R Y A N ,
Director
W I L L I A M TAYLOR, Deputy
Director
FREDERICK R . D A H L , Associate
Director
DON E. KLINE, Associate
Director
FREDERICK M . STRUBLE, Associate
Director
HERBERT A . B I E R N , Assistant
Director
A N T H O N Y G . C O R N Y N , Assistant
Director
JACK M . EGERTSON, Assistant
Director
ROBERT S . P L O T K I N , Assistant
Director
STEPHEN C . S C H E M E R I N G , Assistant
Director
RICHARD S P I L L E N K O T H E N , Assistant
Director
SIDNEY M . SUSSAN, Assistant
Director
LAURA M. HOMER, Securities
Credit
Officer
OF INTERNATIONAL
EDWIN M . TRUMAN,
FINANCE
Director
LARRY J. PROMISEL, Senior Associate
Director
CHARLES J. SIEGMAN, Senior Associate
Director
DALE W. HENDERSON, Associate
Director
Board
A67
and Official Staff
M A R T H A R . SEGER
EMMETT J. RICE
LYLE E . GRAMLEY
OFFICE
OF
STAFF DIRECTOR
FOR
S . D A V I D F R O S T , Staff
OFFICE OF STAFF DIRECTOR
FOR
FEDERAL RESERVE BANK
ACTIVITIES
MANAGEMENT
THEODORE E . A L L I S O N , Staff
Director
WILLIAM R. JONES, Assistant Staff Director
EDWARD T. MULRENIN, Assistant Staff Director
STEPHEN R. MALPHRUS, Assistant Staff Director for
Automation
and
Technology
PORTIA W . T H O M P S O N , EEO
Programs
Officer
OF DATA
PROCESSING
CHARLES L . H A M P T O N ,
Director
BRUCE M . BEARDSLEY, Deputy
Director
G L E N N L . C U M M I N S , Assistant
Director
NEAL H . HILLERMAN, Assistant
Director
RICHARD J . MANASSERI, Assistant
Director
ELIZABETH B . RIGGS, Assistant
Director
W I L L I A M C . S C H N E I D E R , J R . , Assistant
Director
ROBERT J . Z E M E L , Assistant
Director
DIVISION
OF
PERSONNEL
DAVID L . S H A N N O N ,
Director
JOHN R. WEIS, Assistant
Director
CHARLES W . W O O D , Assistant
OFFICE OF THE
CONTROLLER
GEORGE E . L I V I N G S T O N ,
BRENT L . BOWEN, Assistant
DIVISION
Director
OF SUPPORT
Controller
Controller
SERVICES
ROBERT E . F R A Z I E R ,
Director
W A L T E R W . K R E I M A N N , Associate
Director
GEORGE M . L O P E Z , Assistant
Director
*On loan from the Federal Reserve Bank of New York.
Equal
Employment
Office
DIVISION
BANK
DIVISION
Director
JOSEPH W. DANIELS, SR., Advisor,
Opportunity
Programs
OF FEDERAL
RESERVE
OPERATIONS
CLYDE H . FARNSWORTH, JR.,
Director
E L L I O T T C . M C E N T E E , Associate
Director
D A V I D L . ROBINSON, Associate
Director
C . W I L L I A M S C H L E I C H E R , J R . , Associate
Director
W A L T E R A L T H A U S E N , Assistant
Director
CHARLES W . B E N N E T T , Assistant
Director
A N N E M . D E B E E R , 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
* JOHN F . SOBALA, Assistant
Director
68
Federal Reserve Bulletin • September 1984
Federal Open Market Committee
FEDERAL
OPEN MARKET
COMMITTEE
P A U L A . VOLCKER, Chairman
A N T H O N Y M . SOLOMON, Vice
EDWARD G . BOEHNE
ROBERT H . BOYKIN
E . G E R A L D CORRIGAN
L Y L E E . GRAMLEY
KAREN N . HORN
PRESTON M A R T I N
STEPHEN H. AXILROD, Staff Director and
NORMAND R . V . BERNARD, Assistant
Secretary
Secretary
NANCY M. STEELE, Deputy Assistant
Secretary
MICHAEL BRADFIELD, General Counsel
JAMES H. OLTMAN, Deputy General Counsel
JAMES L . K I C H L I N E ,
Economist
EDWIN M . TRUMAN, Economist
JOSEPH E . BURNS, Associate
JOHN M. DAVIS, Associate
(International)
Economist
J . CHARLES PARTEE
E M M E T T J . RICE
M A R T H A R . SEGER
HENRY C . WALLICH
RICHARD G . DAVIS, Associate
Economist
DONALD L. KOHN, Associate
Economist
RICHARD W . LANG, Associate
DAVID E . LINDSEY, Associate
MICHAEL J. PRELL, Associate
CHARLES J. SIEGMAN, Associate
GARY H. STERN, Associate
JOSEPH S. ZEISEL, Associate
Economist
Economist
Economist
Economist
Economist
Economist
Economist
PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account
SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account
FEDERAL ADVISORY
COUNCIL
JOHN G . MCCOY,
President
JOSEPH J. PINOLA, Vice President
V I N C E N T C . B U R K E , J R . , N . B E R N E H A R T , AND L E W I S T . PRESTON,
ROBERT L . N E W E L L , First District
L E W I S T. PRESTON, Second District
GEORGE A . B U T L E R , Third District
JOHN G. MCCOY, Fourth District
V I N C E N T C . B U R K E , JR., Fifth District
P H I L I P F. SEARLE, Sixth District
Directors
BARRY F. SULLIVAN, Seventh District
W I L L I A M H . B O W E N , Eighth District
E. PETER G I L L E T T E , JR., Ninth District
N. B E R N E H A R T , Tenth District
NAT S. ROGERS, Eleventh District
Twelfth District
JOSEPH J . PINOLA,
HERBERT V . PROCHNOW,
WILLIAM J . KORSVIK, Associate
Secretary
Secretary
Chairman
A69
and Advisory Councils
CONSUMER
ADVISORY
COUNCIL
W I L L A R D P . O G B U R N , Boston, Massachusetts,
T I M O T H Y D. MARRINAN, Minneapolis, Minnesota,
RACHEL
G. BRATT, Medford, Massachusetts
JAMES G. BOYLE, Austin, Texas
GERALD R . C H R I S T E N S E N , Salt Lake City, Utah
THOMAS L. C L A R K , JR., New York, New York
Chairman
Vice Chairman
FREDERICK H. M I L L E R , Norman, Oklahoma
MARGARET M . M U R P H Y , Columbia, Maryland
ROBERT F. M U R P H Y , Detroit, Michigan
L A W R E N C E S. OKINAGA, Honolulu, Hawaii
JEAN A. CROCKETT, Philadelphia, Pennsylvania
ELVA QUIJANO, San Antonio, Texas
M E R E D I T H FERNSTROM, New York, New York
A L L E N J. F I S H B E I N , W a s h i n g t o n , D . C .
E.C.A. FORSBERG, SR., Atlanta, Georgia
STEVEN M. G E A R Y , Jefferson City, Missouri
RICHARD F . H A L L I B U R T O N , Kansas City, Missouri
LOUISE M C C A R R E N H E R R I N G , Cincinnati, Ohio
CHARLES C . H O L T , Austin, Texas
HARRY N. JACKSON, Minneapolis, Minnesota
K E N N E T H V. L A R K I N , San Francisco, California
JANET J . RATHE,
THRIFT INSTITUTIONS
ADVISORY
Portland, Oregon
JANET SCACCIOTTI, Providence, Rhode Island
G L E N D A G . SLOANE, W a s h i n g t o n , D . C .
H E N R Y J . SOMMER, Philadelphia, Pennsylvania
WINNIE F. TAYLOR, San Francisco, California
MICHAEL M . V A N BUSKIRK, Columbus, Ohio
CLINTON W A R N E , Cleveland, Ohio
FREDERICK T. W E I M E R , Chicago, Illinois
MERVIN W I N S T O N , Minneapolis, Minnesota
COUNCIL
THOMAS R . BOMAR, Miami, Florida, President
RICHARD H . D E I H L , Los Angeles, California, Vice President
JAMES A . A L I B E R , Detroit, Michigan
G E N E R . A R T E M E N K O , Chicago, Illinois
J . M I C H A E L C O R N W A L L , Dallas, Texas
JOHN R. EPPINGER, Villanova, Pennsylvania
NORMAN M. JONES, Fargo, North Dakota
ROBERT R . MASTERTON, Portland, Maine
JOHN T. M O R G A N , New York, New York
FRED A. PARKER, Monroe, North Carolina
Newark, Ohio
SARAH R . W A L L A C E ,
A70
Federal Reserve Board Publications
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A71
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F E D E R A L RESERVE REGULATORY SERVICE.
T H E U . S . ECONOMY IN AN I N T E R D E P E N D E N T W O R L D :
Truth in Leasing
U.S. Currency
What Truth in Lending Means to You
STAFF STUDIES. Summaries
Bulletin
Only Printed in the
Studies and papers on economic and financial subjects that
are of general interest. Requests to obtain single copies of
the full text or to be added to the mailing list for the series
may be sent to Publications
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A
MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each.
W E L C O M E TO THE F E D E R A L RESERVE.
PROCESSING B A N K H O L D I N G COMPANY A N D M E R G E R A P P L I CATIONS.
REMARKS BY C H A I R M A N P A U L A . VOLCKER, AT A N N U A L
H U M A N R E L A T I O N S A W A R D D I N N E R , December 1982.
REMARKS BY C H A I R M A N P A U L A . VOLCKER, AT DEDICATION
CEREMONIES: F E D E R A L RESERVE B A N K OF S A N F R A N -
CISCO, March 1983.
114. MULTIBANK H O L D I N G COMPANIES: R E C E N T E V I DENCE ON C O M P E T I T I O N AND PERFORMANCE IN
BANKING M A R K E T S , by Timothy J. Curry and John T.
Rose. Jan. 1982. 9 pp.
115. COSTS, SCALE E C O N O M I E S , C O M P E T I T I O N , AND PRODUCT M I X IN THE U . S . PAYMENTS M E C H A N I S M , b y
David B. Humphrey. Apr. 1982. 18 pp.
116. DIVISIA M O N E T A R Y AGGREGATES:
COMPILATION,
D A T A , AND HISTORICAL B E H A V I O R , b y W i l l i a m A .
A.
Barnett and Paul A. Spindt. May 1982. 82 pp. Out of
print.
C R E D I T CARDS IN T H E U . S . ECONOMY: T H E I R IMPACT ON
COSTS, PRICES, AND R E T A I L SALES, July 1983. 114 pp.
REMARKS BY C H A I R M A N P A U L A . VOLCKER, AT THE A N N U AL D I N N E R OF THE JAPAN SOCIETY, June 1984.
T H E M O N E T A R Y A U T H O R I T Y OF THE F E D E R A L RESERVE,
117. T H E C O M M U N I T Y R E I N V E S T M E N T A C T AND C R E D I T
RESTORING STABILITY. REMARKS BY C H A I R M A N P A U L
VOLCKER, April 1983.
ALLOCATION, by Glenn Canner. June 1982. 8 pp.
118. INTEREST R A T E S AND T E R M S ON CONSTRUCTION
LOANS AT COMMERCIAL BANKS, by David F. Seiders.
July 1982. 14 pp.
119. S T R U C T U R E - P E R F O R M A N C E S T U D I E S IN B A N K I N G :
A N U P D A T E D SUMMARY AND E V A L U A T I O N , b y S t e -
May 1984. (High School Level.)
phen A. Rhoades. Aug. 1982. 15 pp.
120. FOREIGN SUBSIDIARIES OF U . S . B A N K I N G ORGANIZA-
CONSUMER EDUCATION
PAMPHLETS
Short pamphlets suitable for classroom use. Multiple
available without charge.
copies
TIONS, by James V. Houpt and Michael G. Martinson.
Oct. 1982. 18 pp. Out of print.
121. R E D L I N I N G : RESEARCH AND F E D E R A L
LEGISLATIVE
RESPONSE, by Glenn B. Canner. Oct. 1982. 20 pp.
122. B A N K CAPITAL T R E N D S AND F I N A N C I N G , b y S a m u e l
Alice in Debitland
Consumer Handbook to Credit Protection Laws
The Equal Credit Opportunity Act and . . . Age
The Equal Credit Opportunity Act and . . . Credit Rights in
Housing
The Equal Credit Opportunity Act and . . . Doctors, Lawyers, Small Retailers, and Others Who May Provide Incidental Credit
The Equal Credit Opportunity Act and . . . Women
Fair Credit Billing
Federal Reserve Glossary
Guide to Federal Reserve Regulations
How to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You Use A Credit Card
Instructional Materials of the Federal Reserve System
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Monetary Control Act of 1980
Organization and Advisory Committees
H. Talley. Feb. 1983. 19 pp. Out of print.
123. FINANCIAL TRANSACTIONS W I T H I N B A N K
HOLDING
COMPANIES, by John T. Rose and Samuel H. Talley.
May 1983. 11 pp.
124. INTERNATIONAL B A N K I N G FACILITIES AND T H E E U RODOLLAR M A R K E T , by Henry S. Terrell and Rodney
H. Mills. August 1983. 14 pp.
125. SEASONAL A D J U S T M E N T OF THE W E E K L Y MONETARY
AGGREGATES: A M O D E L - B A S E D APPROACH, b y D a v i d
A. Pierce, Michael R. Grupe, and William P. Cleveland. August 1983. 23 pp.
126. D E F I N I T I O N A N D M E A S U R E M E N T OF E X C H A N G E M A R -
KET INTERVENTION, by Donald B. Adams and Dale
W. Henderson. August 1983. 5 pp.
127. U . S . E X P E R I E N C E W I T H E X C H A N G E M A R K E T INTERVENTION: J A N U A R Y - M A R C H 1 9 7 5 , by Margaret L .
Greene.
* 1 2 8 . U . S . EXPERIENCE W I T H E X C H A N G E M A R K E T INTERVENTION: S E P T E M B E R 1 9 7 7 - O c T O B E R 1 9 8 1 , by Marga-
ret L. Greene.
129. U . S . EXPERIENCE W I T H E X C H A N G E M A R K E T INTERVENTION: OCTOBER 1 9 8 0 - O c T O B E R 1 9 8 1 , by Margaret
L. Greene.
All
130. E F F E C T S OF E X C H A N G E R A T E VARIABILITY ON I N TERNATIONAL T R A D E A N D O T H E R ECONOMIC VARIABLES: A R E V I E W OF THE L I T E R A T U R E , by Victoria S .
Farrell with Dean A. DeRosa and T. Ashby McCown.
January 1984. 21 pp.
131. CALCULATIONS OF PROFITABILITY FOR U . S . D O L L A R DEUTSCHE MARK INTERVENTION, by Laurence R .
Jacobson. October 1983. 8 pp.
132. T I M E - S E R I E S S T U D I E S OF THE R E L A T I O N S H I P BET W E E N E X C H A N G E R A T E S AND INTERVENTION: A
R E V I E W OF THE T E C H N I Q U E S AND L I T E R A T U R E , b y
Kenneth Rogoff. October 1983. 15 pp.
133. RELATIONSHIPS AMONG EXCHANGE R A T E S , INTERVENTION, AND INTEREST RATES: A N EMPIRICAL IN-
VESTIGATION, by Bonnie E. Loopesko. November
1983. 20 pp.
134. SMALL EMPIRICAL M O D E L S OF E X C H A N G E MARKET
INTERVENTION: A R E V I E W OF THE L I T E R A T U R E , b y
Ralph W. Try on. October 1983. 14 pp.
* 1 3 5 . SMALL EMPIRICAL M O D E L S OF E X C H A N G E M A R K E T
INTERVENTION: APPLICATIONS TO C A N A D A , G E R M A -
NY, AND JAPAN, by Deborah J. Danker, Richard A.
Haas, Dale W. Henderson, Steven A. Symansky, and
Ralph W. Try on.
136. T H E E F F E C T S OF FISCAL POLICY ON THE U . S . E C O N O -
MY, by Darrell Cohen and Peter B. Clark. January
1984. 16 pp.
137. T H E IMPLICATIONS FOR B A N K M E R G E R POLICY OF
FINANCIAL D E R E G U L A T I O N , INTERSTATE B A N K I N G ,
AND
FINANCIAL
SUPERMARKETS,
by
Stephen
A.
Rhoades. February 1984. 8 pp.
138. A N T I T R U S T L A W S , JUSTICE D E P A R T M E N T G U I D E LINES, AND THE L I M I T S OF CONCENTRATION IN L O CAL BANKING M A R K E T S , by James Burke. June 1984.
14 pp.
139. SOME IMPLICATIONS OF FINANCIAL INNOVATIONS IN
THE UNITED STATES, by Thomas D. Simpson and
Patrick M. Parkinson. August 1984. 20 pp.
*The availability of these studies will be announced in a
forthcoming B U L L E T I N .
REPRINTS OF BULLETIN
ARTICLES
Most of the articles reprinted do not exceed 12 pages.
Survey of Finance Companies. 1980. 5/81.
Bank Lending in Developing Countries. 9/81.
The Commercial Paper Market since the Mid-Seventies. 6/82.
Applying the Theory of Probable Future Competition. 9/82.
International Banking Facilities. 10/82.
New Federal Reserve Measures of Capacity and Capacity
Utilization. 7/83.
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.
U.S. International Transactions in 1983. 4/84.
A73
Index to Statistical Tables
References
are to pages A3 through A64 although the prefix 'A"
ACCEPTANCES, bankers, 9, 22, 24
Agricultural loans, commercial banks, 18, 19, 23
Assets and liabilities (See also Foreigners)
Banks, by classes, 17-19
Domestic finance companies, 35
Federal Reserve Banks, 10
Foreign banks, U.S. branches and agencies, 20
Nonfinancial corporations, 34
Savings institutions, 26
Automobiles
Consumer installment credit, 38, 39
Production, 44, 45
BANKERS acceptances, 9, 22, 24
Bankers balances, 17-19 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 32
Rates, 3
Branch banks, 14, 20, 52
Business activity, nonfinancial, 42
Business expenditures on new plant and equipment, 34
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 42
Capital accounts
Banks, by classes, 17
Federal Reserve Banks, 10
Central banks, discount rates, 63
Certificates of deposit, 20, 24
Commercial and industrial loans
Commercial banks, 15, 20, 23
Weekly reporting banks, 18-20
Commercial banks
Assets and liabilities, 17-19
Business loans, 23
Commercial and industrial loans, 15, 20, 23
Consumer loans held, by type, and terms, 38, 39
Loans sold outright, 19
Nondeposit fund, 16
Number, by classes, 17
Real estate mortgages held, by holder and property, 37
Time and savings deposits, 3
Commercial paper, 3, 22, 24, 35
Condition statements (See Assets and liabilities)
Construction, 42, 46
Consumer installment credit, 38, 39
Consumer prices, 42, 47
Consumption expenditures, 48, 49
Corporations
Profits and their distribution, 33
Security issues, 32, 62
Cost of living (See Consumer prices)
Credit unions, 26, 38 (See also Thrift institutions)
Currency and coin, 17
Currency in circulation, 4, 13
Customer credit, stock market, 25
DEBITS to deposit accounts, 14
Debt (See specific types of debt or securities)
Demand deposits
Adjusted, commercial banks, 14
Banks, by classes, 17-20
is omitted in this index
Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 21
Turnover, 14
Depository institutions
Reserve requirements, 7
Reserves and related items, 3, 4, 5, 12
Deposits (See also specific types)
Banks, by classes, 3, 17-20, 26
Federal Reserve Banks, 4, 10
Turnover, 14
Discount rates at Reserve Banks and at foreign central
banks (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 33
EMPLOYMENT, 42, 43
Eurodollars, 24
FARM mortgage loans, 37
Federal agency obligations, 4, 9, 10, 11, 30
Federal credit agencies, 31
Federal finance
Debt subject to statutory limitation and types and
ownership of gross debt, 29
Receipts and outlays, 27, 28
Treasury financing of surplus, or deficit, 27
Treasury operating balance, 27
Federal Financing Bank, 27, 31
Federal funds, 3, 5, 16, 18, 19, 20, 24, 27
Federal Home Loan Banks, 31
Federal Home Loan Mortgage Corporation, 31, 36, 37
Federal Housing Administration, 31, 36, 37
Federal Land Banks, 37
Federal National Mortgage Association, 31, 36, 37
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 4, 10, 11, 29
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federally sponsored credit agencies, 31
Finance companies
Assets and liabilities, 35
Business credit, 35
Loans, 18, 38, 39
Paper, 22, 24
Financial institutions
Loans to, 18, 19, 20
Selected assets and liabilities, 26
Float, 4
Flow of funds, 40, 41
Foreign banks, assets and liabilities of U.S. branches and
agencies, 20
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 18, 19
Foreign exchange rates, 64
Foreign trade, 51
Foreigners
Claims on, 52, 54, 57, 58, 59, 61
Liabilities to, 19, 51, 52-56, 60, 62, 63
A74
GOLD
Certificate account, 10
Stock, 4, 51
Government National Mortgage Association, 31, 36, 37
Gross national product, 48, 49
HOUSING, new and existing units, 46
INCOME, personal and national, 42, 48, 49
Industrial production, 42, 44
Installment loans, 38, 39
Insurance companies, 26, 29, 37
Interbank loans and deposits, 17
Interest rates
Bonds, 3
Business loans of banks, 23
Federal Reserve Banks, 6
Foreign central banks and foreign countries, 63, 64
Money and capital markets, 3, 24
Mortgages, 3, 36
Prime rate, commercial banks, 22
Time and savings deposits, 8
International capital transactions of United States, 50-63
International organizations, 54, 55-57, 60-63
Inventories, 48
Investment companies, issues and assets, 33
Investments (See also specific types)
Banks, by classes, 17, 19, 26
Commercial banks, 3, 15, 17-19, 20, 37
Federal Reserve Banks, 10, 11
Savings institutions, 26, 37
LABOR force, 43
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 17-19
Commercial banks, 3, 15, 17-19, 20, 23
Federal Reserve Banks, 4, 5, 6, 10, 11
Insured or guaranteed by United States, 36, 37
Savings institutions, 26, 37
MANUFACTURING
Capacity utilization, 42
Production, 42, 45
Margin requirements, 25
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 5
Reserve requirements, 7
Mining production, 45
Mobile homes shipped, 46
Monetary and credit aggregates, 3, 12
Money and capital market rates (See Interest rates)
Money stock measures and components, 3,13
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 8, 18-19, 26, 29, 37, 38 (See also
Thrift institutions)
NATIONAL defense outlays, 28
National income, 48
OPEN market transactions, 9
PERSONAL income, 49
Prices
Consumer and producer, 42, 47
Stock market, 25
Prime rate, commercial banks, 22
Producer prices, 42, 47
Production, 42, 44
Profits, corporate, 33
REAL estate loans
Banks, by classes, 15, 18, 19, 37
Rates, terms, yields, and activity, 3, 36
Savings institutions, 26
Type of holder and property mortgaged, 37
Repurchase agreements, 5, 16, 18, 19, 20
Reserve requirements, 7
Reserves
Commercial banks, 17
Depository institutions, 3, 4, 5, 12
Federal Reserve Banks, 10
U.S. reserve assets, 51
Residential mortgage loans, 36
Retail credit and retail sales, 38, 39, 42
SAVING
Flow of funds, 40, 41
National income accounts, 49
Savings and loan associations, 8, 26, 37, 38, 40 (See also
Thrift institutions)
Savings deposits (See Time and savings deposits)
Securities (See specific types)
Federal and federally sponsored credit agencies, 31
Foreign transactions, 62
New issues, 32
Prices, 25
Special drawing rights, 4, 10, 50, 51
State and local governments
Deposits, 18, 19
Holdings of U.S. government securities, 29
New security issues, 32
Ownership of securities issued by, 18, 19, 26
Rates on securities, 3
Stock market, 25
Stocks (See also Securities)
New issues, 32
Prices, 25
Student Loan Marketing Association, 31
TAX receipts, federal, 28
Thrift institutions, 3 (See also Credit unions, Mutual
savings banks, and Savings and loan associations)
Time and savings deposits, 3, 8, 13, 16, 17-20
Trade, foreign, 51
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 10, 27
Treasury operating balance, 27
UNEMPLOYMENT, 43
U.S. government balances
Commercial bank holdings, 17, 18, 19
Treasury deposits at Reserve Banks, 4, 10, 27
U.S. government securities
Bank holdings, 16, 17-19, 20, 29
Dealer transactions, positions, and financing, 30
Federal Reserve Bank holdings, 4, 10, 11, 29
Foreign and international holdings and transactions, 10,
29, 63
Open market transactions, 9
Outstanding, by type and holder, 26, 29
Rates, 3, 24
U.S. international transactions, 50-63
Utilities, production, 45
VETERANS Administration, 36, 37
WEEKLY reporting banks, 18-20
Wholesale (producer) prices, 42, 47
YIELDS (See Interest rates)
A75
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
Robert P. Henderson
Thomas I. Atkins
Frank E. Morris
Robert W. Eisenmenger
NEW YORK*
10045
John Brademas
Gertrude G. Michelson
M. Jane Dickman
Anthony M. Solomon
Thomas M. Timlen
Buffalo
14240
Vice President
in charge of branch
John T. Keane
PHILADELPHIA
19105
Robert M. Landis
Nevius M. Curtis
Edward G. Boehne
Richard L. Smoot
CLEVELAND*
44101
William H. Knoell
E. Mandell de Windt
Robert E. Boni
Milton G. Hulme, Jr.
Karen N. Horn
William H. Hendricks
William S. Lee
Leroy T. Canoles, Jr.
Robert L. Tate
Henry Ponder
Robert P. Black
Jimmie R. Monhollon
John H. Weitnauer, Jr.
Bradley Currey, Jr.
Martha A. Mclnnis
Jerome P. Keuper
Sue McCourt Cobb
C. Warren Neel
Sharon A. Perlis
Robert P. Forrestal
Jack Guynn
Stanton R. Cook
Edward F. Brabec
Russell G. Mawby
Silas Keehn
Daniel M. Doyle
W.L. Hadley Griffin
Mary P. Holt
Sheffield Nelson
Sister Eileen M. Egan
Patricia W. Shaw
Theodore H. Roberts
Joseph P. Garbarini
William G. Phillips
John B. Davis, Jr.
Ernest B. Corrick
E. Gerald Corrigan
Thomas E. Gainor
Doris M. Drury
Irvine O. Hockaday,
James E. Nielson
Patience Latting
Robert G. Lueder
Roger Guffey
Henry R. Czerwinski
Robert D. Rogers
John V. James
Mary Carmen Saucedo
Paul N. Howell
Lawrence L. Crum
Robert H. Boykin
William H. Wallace
Caroline L. Ahmanson
Alan C. Furth
Bruce M. Schwaegler
Paul E. Bragdon
Wendell J. Ashton
John W. Ellis
John J. Balles
Richard T. Griffith
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30301
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Charles A. Cerino
Harold J. Swart
Robert D. McTeer, Jr.
Albert D. Tinkelenberg
John G. Stoides
Fred R. HenJames D. Hawkins
Patrick K. Barron
Jeffrey J. Wells
Henry H. Bourgaux
Roby L. Sloan
John F. Breen
James E. Conrad
Paul I. Black, Jr.
Robert F. McNellis
Wayne W. Martin
William G. Evans
Robert D. Hamilton
Joel L. Koonce, Jr.
J.Z. Rowe
Thomas H. Robertson
Richard C. Dunn
Angelo S. Carella
A. Grant Holman
Gerald R. Kelly
*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, 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.
A76
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
April 1984
•MMMMMMM
•MBIIMMM
mma
HAWAII
LEGEND
Boundaries of Federal Reserve Districts
®
Federal Reserve Bank Cities
Boundaries of Federal Reserve Branch
Territories
•
Federal Reserve Branch Cities
Federal Reserve Bank Facility
Q
Board of Governors of the Federal Reserve
System
Publications of Interest
FEDERAL RESERVE
PUBLICATIONS
CONSUMER
CREDIT
The Federal Reserve Board publishes a series of
pamphlets covering individual credit laws and topics,
as pictured below. The series includes such subjects as
how the Equal Credit Opportunity Act protects women against discrimination in their credit dealings, how
to use a credit card, and how to use Truth in Lending
information to compare credit costs.
The Board also publishes the Consumer Handbook
to Credit
Protection
Laws,
a complete guide to con-
sumer credit protections. This 44-page booklet explains how to use the credit laws to shop for credit,
apply for it, keep up credit ratings, and complain about
an unfair deal.
Protections offered by the Electronic Fund Transfer
Act are explained in Alice in Debitland. This booklet
offers tips for those using the new "paperless" systems for transferring money.
Copies of consumer publications are available free
of charge from Publications Services, Mail Stop 138,
Board of Governors of the Federal Reserve System,
Washington, D.C. 20551. Multiple copies for classroom use are also available free of charge.
LE46MO
LE4SING
LE4SMG
The Equal Credit
Opportunity Act
and . . .
TRUTH IN UE4SING
What
Ituthln
Lending
Means
ToYou
The
Equal
Credit
Opportunity
ActP"
...andI
YOU USE A
CREDIT
CARD
Publications of Interest
FEDERAL RESERVE REGULATORY
SERVICE
To promote public understanding of its regulatory
functions, the Board publishes the Federal Reserve
Regulatory Service, a three-volume looseleaf service
containing all Board regulations and related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are
published separately as handbooks pertaining to monetary policy, securities credit, and consumer affairs.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated at least monthly, and each
contains conversion tables, citation indexes, and a
subject index.
T h e Monetary
Policy
and Reserve
Requirements
Handbook contains Regulations A, D, and Q plus
related materials. For convenient reference, it also
contains the rules of the Depository Institutions
Deregulation Committee.
r
T h e Securities
Credit
Transactions
Handbook
con-
tains Regulations G, T, U, and X, dealing with extensions of credit for the purchase of securities, together
with all related statutes, Board interpretations, rulings, and staff opinions. Also included is the Board's
list of OTC margin stocks.
T h e Consumer
and Community
Affairs
Handbook
contains Regulations B, C, E, M, Z, AA, and BB and
associated materials.
For domestic subscribers, the annual rate is $175 for
the Federal
Reserve
Regulatory
Service
a n d $60 f o r
each handbook. For subscribers outside the United
States, the price including additional air mail costs is
$225 for the Service and $75 for each Handbook. All
subscription requests must be accompanied by a check
or money order payable to Board of Governors of the
Federal Reserve System. Orders should be addressed
to Publications Services, Mail Stop 138, Federal Reserve Board, 20th Street and Constitution Avenue,
N.W., Washington, D.C. 20551.
@FedFRASER