Full text of G.20 Finance Companies : September 1974

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September 1974

FINANCE COMPANIES - J u l y 1974
Consumer i n s t a l m e n t c r e d i t o u t s t a n d i n g a t f i n a n c e companies r o s e 0 . 8 p e r
c e n t d u r i n g J u l y . T h i s s l o w i n g of t h e growth r a t e from t h e : p r e v i o u s two months i s
a r e f l e c t i o n of t h e s m a l l e r i n c r e a s e t h i s month i n r e t a i l - p a s s j e n g e r c a r s o u t s t a n d i n g ,
as compared w i t h t h a t of May and J u n e . 0the'r m a j o r c a t e g o r i e s of consumer c r e d i t
e x h i b i t e d growth i n J u l y s i m i l a r t o t h e p a t t e r n e s t a b l i s h e d th r o u g h o u t t h e second
q u a r t e r . A g a i n , a s i n t h e p r e c e d i n g t h r e e months, p e r s o n a l l c ans a c c o u n t e d f o r t h e
l a r g e s t p o r t i o n of t h e t o t a l i n c r e a s e
Both e x t e n s i o n s and r e p a y m e n t s of consumer i n s t a l m e n t c r e d i t were h i g h e r
t h a n i n J u n e . T h i s p a t t e r n of monthly, growth i n e x t e n s i o n s ar d r e p a y m e n t s began
i n March b u t was i n t e r r u p t e d l a s t month when b o t h e x t e n s i o n s i nd r e p a y m e n t s were
s m a l l e r t h a n i n t h e p r e v i o u s month.
A f t e r an i n c r e a s e of 1 . 1 p e r c e n t i n J u n e , b u s i n e s s c r e d i t o u t s t a n d i n g
showed a s e a s o n a l d r o p of 0 . 4 p e r c e n t i n J u l y . The o n l y b u s i n e s s c r e d i t c a t e g o r y
O u t s t a n d i n g Consumer C r e d i t Held by F i n a n c e Companies
( I n m i l l i o n s of d o l l a r s )

Type of c r e d i t

I n c r e a s e or! d e c r e a s e (•-) d u r i n g
July
Year ended
j July
1974
! 1973
J u l y 3 1 , 1974

J u l y 31,
1974.

Consumer i n s t a l m e n t c r e d i t
R e t a i l automotive (passenger
cars)

38,479

M o b i l e homes
O t h e r r e t a i l consumer goods
Home improvement l o a n s
Personal loans

3,505
4,664
1,118
17,152

j

320

12,040 .

651 . '

83

244

675

56
38
. 4
139

51
101
39
218

373
561
385
1,465

.

Consumer C r e d i t Extended and Repaid a t F i n a j i c e Companies
( I n m i l l i o n s of d o l l a r s )
j

Type of c r e d i t
Consumer i n s t a l m e n t c r e d i t
R e t a i l automotive (passenger
cars)
Mobile homes •
O t h e r r e t a i l consumer goods
Home improvement l o a n s
Personal loans




-

Extended by f i n a n c e c o s .
July
June
July
1974 . 1974
1973

1 Repaid t c f i n a n c e c o s .
July
1974
1973

3,929

3,778

3,609

893

826

157
1,069
43
1,767

•186
- 1,008-.
60,
1,698

3,931
,

890
143
1,075
77
1,74.6

3,370

810 * .
101
1,031
. 39
1,628

.

679
150
965
43
1,533

3,278
;

646
92
974
38
1,528

G.20

'

-2.OutsLanding B u s i n e s s C r e d i t Held by F i n a n c e Companies
( I n m i l l i o n s of d o l l a r s )

. Type of c r e d i t
Business c r e d i t
R e t a i l a u t o m o t i v e (commercial
vehicles
Wholesale automotive
R e t a i l p a p e r on b u s i n e s s , i n ~-4us t r i a l and farm equipment
Loans on c o m m e r c i a l a c c o u n t s
- receivable
. Fa-ctored c o m m e r c i a l a c c o u n t s
i
receivable
All other business credit

J u l y 31,
1974

.

-135

30,440
4,633
6,281

Increase or decrease (-) during:
Year ended
July
July
1973
J u l y 3 1 , 1974
1974

;

8,661

dL81

:

2,543

63
-492

-45
-160

167
. -72

111

160

835

2,090

4

-49

199

1,711
7,064

133
46

-89
2

207
1,207

B u s i n e s s C r e d i t Extended and Repaid a t F i n a n c o Companies
( I n m i l l i o n s of d o l l a r s )

Type of c r e d i t
"Business c r e d i t
R e t a i l automotive (commercial
vehicles)
Wholesale automotive
R e t a i l p a p e r on b u s i n e s s , i n d u s t r i a l and f a r m equipment
Loans on commercial 1 a c c o u n t s
receivable
F a c t o r e d commercial accounts
receivable
All other business c r e d i t

Extended by f i n a n c e c o s .
July
July
June
1974
-1973
1974

Repaid t o f i n a n c e c o s .
July
July
1.974
1973
1974

9,323

9,213

8,985

9,458

8,883

9,166

449
2,891

395
2,937

357
3,131

386
3,383

394
3,009

402 3,291

952

1,078

930

841

892

770

2,018

1,8.79

1,795

2,014

1,852

1,844

1,700
1,313

1,492
1,432

1,466
1,306

1,567 '
1,267

1,400
1,336

1,555
1,304

t h a t r e g i s t e r e d a d e c l i n e was w h o l e s a l e a u t o m o t i v e p a p e r , a f f e c t e d by t h e a u t o m o b i l e
i n d u s t r y ' s new model c h a n g e o v e r p e r i o d . Both e x t e n s i o n s and repayments of t o t a l
b u s i n e s s ' c r e d i t were g r e a t e r t h a n i n J u n e .
The r a t e of i n c r e a s e of bank l o a n s owed by f i n a n c e companies slowed i n J u l y
t o 5 . 8 p e r c e n t from 1 1 . 5 p e r c e n t i n J u n e . On t h e o t h e r h a n d , t o t a l commercial p a p e r
o u t s t a n d i n g r o s e 5 . 3 p e r c e n t f o r t h e month.




Change i n E x t e n s i o n s and Repayments
( I n m i l l i o n s of d o l l a r s )
Type of c r e d i t

Change i n e x t e n s i o n s from:
Month ago 1 vYear
^ - ^ago
—

Change i n repayments f r o m :
Month ago
Year ago

Consumer i n s t a l m e n t c r e d i t
R e t a i l automotive (passenger
car)

151

239

331

67

3

131

164

Mobile homes
O t h e r r e t a i l consumer goods
Home improvement l o a n s
Personal loans

-29
61
-17
69

14

21.

-49
66
-4
95

9
57
1
100

338

575

292

54
-46

92
-240

-8
374

-16

-126

22

-51

71

Business c r e d i t
R e t a i l a u t o m o t i v e (commercial
vehicles)
Wholesale automotive
R e t a i l p a p e r on b u s i n e s s , i n d u s t r i a l and farm equipment
Loans on commercial a c c o u n t s
receivable
"Factored commercial a c c o u n t s
receivable
All other business credit

-2

- -6

-34:

92

139

223

162

170

208
-119

234
7

167
-69

12
-37

Number of Motor V e h i c l e s F i n a n c e d a t R e t a i l by Finance Companies
(In thousands)
J u l y 31,
1974

Type of v e h i c l e

-

"

'4" —

3
-16

13
. 5
• 12

145
117
103

New p a s s e n g e r
Used p a s s e n g e r
New and used commercial

Change f r o m :
Year
ago

30

365.

Total financed at r e t a i l

Month
ago

I22

S e l e c t e d L i a b i l i t i e s of F i n a n c e Companies
( I n m i l l i o n s of d o l l a r s )

Type of l i a b i l i t y
Bank l o a n s ( e x c l . commercial
paper)
Commercial p a p e r
D i r e c t l y placed
Dealer placed




Increase or decrease
(-) during:
July
June
1Q73
1974

July.31,
1974 .
-6,811
21,832
20,661
1,171

'

375
1,096
r

'-22

666
,334

884
-232

%%