Full text of G.20 Finance Companies : February 1974

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February]

1974

FINANCE COMPANIES - December 197:

-

Consumer instalment credit outstanding held by finarn
ice companies increased
$356 million in December, bringing the total to over $37.2 bi]:lion. All the major
areas of credit except retail passenger cars reflected this s^asonal growth. Over
the fourth quarter, outstanding consumer credit rose approxjLme tely $1.2 billion,
which was slightly less than in the fourth quarter of 1972. (jver the year 1973,
outstandings rose by $5 billion compared with $3.5 billion in 1972. The increase
in 1973 was due largely to growth in retail passenger cars and personal loans.
Total consumer credit extensions "were $8 million les s than last month. The
decline was associated mainly with the drop in retail passenge:r car extensions, a result
of the slump in automobile sales.
Business credit outstanding held by finance companie s recorded a seasonal
increase of $623 million, bringing the total outstandings to 29 billion. Wholesale automotive paper and retail paper on businesses, industri al and farm equipment

Outstanding Consumer Credit Held by Finance Companies
(In millions of dollars)
Increase or decrease (_~j during:
December
December
• Year ended
1973
1972
Dec. 31, 1973

Type of credit

Dec. 31,
1973

Consumer instalment credit
Retail automotive (passenger
cars)
Mobil homes
Other retail consumer goods
Home improvement l o a n s V
Personal loans

37.243

356

661

5.155

11,927
3,378
4,434
917
16,587 .

-22
68
63
31
216

148
17
113
45
338

1,753
462
.845
420
1.675

'(

Consumer Credit Extended arid Repaid at Finance Companies
(In millions of dollars)

Type of credit

Extended by finance cos.
Dec.
Nov.
1973
1972
1973
3*722
3.766
3.714

Consumer instalment credit
Retail automotive (passenger
559
cars)
164
Mobile homes
1,046
Other retail consumer goods
83
Home improvement 'loansi/
1,862
Personal loans
TJ Formerly Home repair and modernization.




758
133
1,010
85
1,736

695
104
987
• 57
1,923

Repaid to finance cos.
Dec.
Nov.
Dec.
1973
1973
1972
3,358
3.200
3.105
581
96
'983
52
1.646

668
92
955
46
1.439

547
87
874
12
1.585

00

Outstanding Business Credit Held by Finance Companies
(In millions of dollars)

Type of credit

Business credit
Retail automotive (commercial
vehicles
Wholesale automotive
. Retail paper on business, industrial and farm equipment
. Loans on commercial accounts
receivable
Factored commercial accounts
receivable
All other business credit

|
Increase or decrease ( - ) during:
Dec. 31, . 1 December
December
Year ended
1973
1973
1972
Dec. 31, 1973
29,006

623

900

2-866

4,184
6,617

-42
427

-11
429

-257
1,212

8,189

219

150

659

2,014

-31

22

290

1,592
6,410

25
25

4
306

270
692

Business Credit Extended and Repaid at Finance Companies
(In millions of dollars).

Type of credit

Business credit
Retail automotive (commercial
vehicles)
Wholesale automotive
• Retail paper on business, industrial and farm equipment
Loans on commercial accounts
receivable
Factored commercial accounts
receivable
All other business credit

Extended by finance cos.
Dec.
Dec.
1973"
1973
1972

Repaid to finance cos.
Vec;
Nov.
Dec.
1973
1973
1972

8,502

9,013

7,885

7,879

8,589

344

366

365

386

393

376

2,596

3,583

3,017

2,169

3,232

2,588

889

763

801

670

770

651

2,122

1,753

1,134

2,153

1,703

1,112

1,327
1,224

1,316
1,232

1,160
1,408

1,302
1,199

1,328
1.163

1,156
1.102

-

6,985

were the largest contributors to this expansion. The greater than seasonal increase
in wholesale automotive paper outstanding reflects the increase in dealer inventories
of new larger cars caused by buyer' resistance to purchase such models. During the
fourth quarter, outstandings increased $1.5 billion, while for the year 1973, a rise
of over $2.8 billion was recorded.
In both cases, wholesale automotive paper evidenced
the most substantial gains.
Both extensions and repayments of business credit were less than last month.
Wholesale automotive paper, as a result' of reduced production schedules and declining
sales, accounted for the bulk of both declines.




f.

b

G. 20
Change in Extensions and Repayment
(In millions of dollars)
Change in extensions from:
Month ago
Year ago

Type of credit
Consumer instalment credit
Retail automotive (passenger
cars)
Mobile homes
Other retail consumer, goods

Change in repayments from:
Month ago
Year ago

-8

252

-199
31
36
-2
126

-136

Business credit
-511
Retail automotive (commercial
vehicles)
-22
Wholesale automotive
•987
Retail paper on business, industrial and farm equipment
126
Loans on commercial account-s
receivable
369
Factored commercial accounts
receivable
11
All other business credit
£7
Formerly Home repair and modernization

617

-710

894

-21
-421

-7
-1,063

-419

Home improvement loansl/
Personal loans -

60
59
26
-61,

lsa-

253

-874
28 .
6
207

34
9
109
40
61

10

-100

19

988

450

1,041

167
-184

-26
36

146
97

Number of Motor Vehicles Financed at Retail by Finance Companies
(In thousands)

Type of vehicle

Dec. 31,
1973

—

*

Total financed at retail

Change from:
Month
Year
ago
ago

• 248
103
75
70

New passenger
Used passenger
New and used commercial

H57--

=21

-30
-24
-13

-26
-28
-17

Selected Liabilities of Finance Companies
(In millions of. dollars):

Type of liability

Bank loans (excl. commercial
paper)
Commercial paper
Directly placed
Dealer placed




Dec. 3 1 ,
1973

6,293

se or decrease
-) during:
December
1973

20,206

"y
117

18,709
1.497

265
-148

November
1973

December
1972

877

602

121

254

72

295
-41