Full text of G.20 Finance Companies : May 1973

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FEDERAL
s t a t i s t i c a l

R E S E R V E 1 16
release
May 1973

FINANCE COMPANIES -

MARCH 1973

Finance company holdings of consumer credit increased $319 million during
March. All the major credit categories contributed to this grieater than seasonal growth,
For the first quarter as a whole outstandings at finance compainies spurted $662 million
with retail passenger, car and other consumer goods credit reco; ding the largest increases.
The amount of direct loans made and paper purchased during March by finance
companies was $626 million higher than in the previous month, All types of credit with
the exception of repair and modernization loans expanded. Firsi t quarter 1973 extensions
of consumer credit were $1,382 million higher than for the samci quarter of 1972 and
registered only a $1,092 million drop from the very high level recorded in the fourth
quarter of 1972.
Business credit outstanding increased $89 million in March. With both wholesale
and retail commercial vehicle paper showing less growth and ret ail paper on business*
industrial and farm equipment recording a greater decline than a year ago, the increase in
March 1973 was much smaller than that recorded a year earlier.

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

Type of credit
Consumer instalment credit
Retail automotive (passenger
cars)
Mobile Homes
Other retail consumer goods
Home repair and modernization
Personal loans

Increase or decrease (-) during:
Year ended
March
1972
March 31. 1973
1973
21
4.034
319

March 31,
1973
32,750
10,419.
2,943
3,796
581
15.011

-

.

152
34
44
19
70

1,095
356
733
320
1.530

-75
16
21
3
56

Consumer Credit Extended and Repaid at Financ e Companies
(In millions of dollars)

Type of credit
Consumer instalment credit
Retail automotive (passenger
cars)
Mobile Homes
Other retail consumer goods
Home repair and modernization
DigitizedPersonal
for FRASER
loans



Extended by finance cos.
Feb.
March <
March
1973
1972
1973
3,552
886
130
1,006
43
1.487

Repaid to finance cos.
Feb. - March
March
1972
1973
1973

2^72

• 3.173

3.279

2.718

3.152

717
109
844
49
1.253

753
106
835
20
1.459

734
96
970
24
1.455

627
128
736
15
1.212

828
90
814
17
1.403

-

,
G.20

.

'

•

^

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

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 crther business credit

March 31,
1973

Increase or decrease (-) during:
March 1973

7,259

)

2.819

89

613

63
158

245
301

487.
280

-303

-128

913

27.196 ' •
4,458
6,197

March 31, 1973

: March 1972

'

1,787

36

1,517
5,978

42
93

.

1

193

12

25
921

47
136

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.
Feb.
1972 '
1973
1973

Repaid
March
1973

to finance cos .
Feb.
1972
1973

9.607

8,471

7.832

9,518

7.875

7,219

435
3,542

"354
3,380

5373,109

. 372
3,384

379
2,875

292
2,808

616

1,142

902

744

1,542

1,256

1,119

1,50.6

1,232

1,107

1,839
1.410

1,463
I .1.165

1,248
1.203

1,797
1.317

1,419
1.068

1,201
1.067

839

853 .

To finance their expanding receivables portfolios, finance companies continued
to increase both their bank and directly placed commercial paper debt outstanding. Dealer
placed commercial paper, on the other hand, continued to decline, reflecting the companies
preference for the lower interest rates of bank loans.




G. 20

-3Change in Extensions and Repayme
(In millions of dollars)

Type of credit
Consumer instalment credit
Retail automotive (passenger
cars)
M o b i l e Homes 1
Other retail consumer goods
Home repair and modernization
Personal loans

Change in extensions frobi:
Month ago
Year ago |
580
379
|
169
21
162
-6
234

Business credit
Retail automotive (commercial
Vehicles)
W h o l e s a l e automotive
Retail paper on business, industrial and farm equipment
Loans on commercial accounts
receivable
Factored commercial accounts
receivable
All other business credit

133
24
171
23
28

1,136

-14

i
j
j

107
-32
234
9
243

-94
6
156
7
* 52

1,643

2-299

-102
433

-7
509

80
576

223

240

398

1J75

81
162

Change, in re;payments fromrj
Year ago
Month ago
561
127

.

|

286

423

274

399

376
245

591
207

378
249

596
250

Number of Motor Vehicles Financed at Retai 1 by Finance Companies
(In thousands)
Change from:
Year
. j Month
ago
ago

March
1973

Type of vehicle

65

385

Total financed at retail

•

%

22
-10
7

32
17

158

New passenger
Used passenger
NPW and used commercial

19-

'

16

!

Selected Liabilities of Finance Co npariies
(In millions of dollars)
Inc cease or decrease
(~\ during
Type of liability

M a r c h 31,
1973

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




March 1973

Feb. 1973

6,024

755

446

18.702

336

270

1

l'077

'

M

M

M a r c h 1972

J

i
-31
-108

"