View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Federal Reserve Bank of Dallas

August 1984

Check Clearing Center Established in El Paso
A Regional Check Processing Center
has been established to serve the El
Paso territory of the Federal Reserve
Bank of Dallas. The new RCPC will
substantially improve check process­
ing services by increasing the
availability of funds for financial in­
stitutions, and allowing overnight
delivery of reserve account statements
and ACM data that are generated by
the El Paso Branch. Checks drawn on
institutions with routing symbols 1122,
3122, 1123, 3123, 1163 and 3163 will
now be collected through the El Paso
The clearing and collection of
checks is one of the major services
provided by the Federal Reserve
System. With the addition of the El

Paso RCPC, the Dallas Fed operates
four regional clearing centers. These
facilities are designed to improve the
nation’s payments mechanism, ensure
the rapid clearing of all checks and
provide tim ely id e n tific a tio n of
fraudulent or other invalid items.
Depository institutions make check
deposits with the Fed in the form of
cash letters containing up to 3,000
items. Personal and corporate checks
comprise the bulk of the items pro­
cessed by the RCPC’s; other cash
items include Treasury checks, postal
money orders and redeemed food
coupons. RCPC’s do not handle cash
or securities. Cash letters are generally
delivered to the RCPC by private car­
riers hired by the participating finan­

El Paso RCPC Deposit
Deadlines and Fees
Unsorted Regular

Deposit Deadline
12:01 a.m.
Per Item Charge
Intra-District Depositor 3.0c
Inter-District Depositor 3.3c *

Fine Sorted Cash Letters

Deposit Deadline
Cash Letter Fee
Per Item Charge

2:30 a.m.

cial institutions. By processing cash
letters around the clock, regional
check clearing centers often allow
local institutions to get same-day
credit for their check deposits if cer­
tain deadlines are met.
At the El Paso RCPC, the deposit
deadlines for same-day credit are 12:01
a.m. for unsorted items and 2:30 a.m.
for fine sorted cash letters. A premium
unsorted deposit deadline of 12:30 a.m.
also is available. Fees and deadlines
associated with the new service are
detailed in the accompanying table.
Shipments destined for the El Paso
RCPC may be delivered to the Dallas
office by 8:30 p.m. Monday through
Thursday and by 7:00 p.m. Saturday for
transshipment to El Paso. There will be
no additional charge for this service,
but all shipments to the El Paso RCPC
will be subject to the usual ITS sur­
charge. El Paso RCPC items should be
packaged separately and listed on the
TR-701X form as a consolidated ship­
ment, labeled with the two digit class
number 40. One-day consolidated
shipments from the Houston and San
Antonio Branches will be available in
the near future.

Unsorted Premium

Deposit Deadline
Per Item Charge

12:30 a.m.
4.5c *

* In addition, there will be a $2.00 cash letter fee for Inter-District
Depositors of both unsorted regular deposits and unsorted premium





Volcker Reports on Economy, Growth Targets
“The nation’s economy in the first
half of 1984 was characterized by
marked strength in sales, production,
employment and by relatively low infla­
tion," stated Federal Reserve Chair­
man Paul Volcker in his recent con­
gressional testimony. Reporting to
Congress on the state of the economy
and the course of monetary policy is re­
quired of the Federal Reserve chair­
man twice yearly.
In his recent testimony, Volcker
stated that the policy of the Federal
Reserve would remain basically
oriented toward encouraging growth
while over time maintaining progress
toward price stability. He pointed out
that there has been strength in the
economy in such areas as housing,
auto sales, consumer spending,
business investment, employment and
inflation. “The strong growth, reduced
unemployment and more stable prices
of the past year and a half have been
reflected in rising productivity and
higher real incom es fo r most
Americans," he said. But he cautioned
that the increase of U.S. imports over
exports combined with a strong U.S.

dollar has led to unprecedented trade
and current account deficits. “The
behavior of the dollar in foreign ex­
change markets is only one of the
uncertainties in the outlook for 1985,”
he said.
Volcker also cited the federal deficit
as a cause for concern. “The hard fact
is, as I am sure the Congress is fully
aware, the deficit remains huge and,
absent futher action, little or no further
decline now seems probable for 1985

and beyond,” he stated.
In addition to reporting on the
economy, Volcker stated the target
ranges for the monetary aggregates
M1, M2 and M3. For M1, the upper limit
was lowered by one percentage point
from that set in February of this
year—setting the range at 4 to 7 per­
cent. For M2, the upper limit was
lowered by one-half point, and a ten­
tative 6 to 8.5 percent range was
established. The range for M3 will re­
main at 6 to 9 percent.

Ranges of Monetary Growth 1984 and 1985
1984 Range

1984 Actual

1985 Tentative





4 to 8


4 to 7


6 to 9


6 to 81/2


6 to 9


6 to 9

Total Domestic
Nonfinancial Sector Debt

8 to 11


8 to 11

Seger Joins Fed Board of Governors
Dr. Martha R. Seger became a
member of the Board of Governors of
the Federal Reserve System at a
swearing in ceremony July 2. Federal
Reserve Chairman Paul Volcker ad­
ministered the oath of office.
Seger is a financial economist,
educator and former state bank
regulator. She has been serving as a
professor of finance at Central
Michigan University since 1982.
Previously she was the commissioner
of financial institutions for the state of
Michigan and an associate professor
of economics and finance at Oakland
University in Rochester, Mich. She also
has taught at the University of
Michigan and the University of Wind­
sor in Windsor, Ontario. In addition,
Seger has had 10 years of experience

in commercial banking, including over
seven years as chief economist for
Detroit Bank and Trust. From 1964 to
1967, Seger was a financial economist
in the capital market section at the
Federal Reserve Board. Born in Adrian,
Mich., Seger holds an M.B.A. in finance
and a Ph.D. in finance and business
economics from the University of
Seger serves as a director of Comerica, Inc., the Comerica BankDetroit and as a member of the Na­
tio n al A sso ciatio n of Business
Economists, the American Economics
Association, the Economic Club of
Detroit and the Women’s Economic
Seger replaces Nancy Teeters,
whose term expired Jan. 31.

Bank Holding Company Data Released
Over 70 percent of Texas bank
deposits are held in banks affiliated
with multibank holding companies and
over 12 percent are held in one-bank
holding companies, according to
yearend 1983 reports published by the
Dallas Fed.
The reports indicate that there were
87 multibank holding companies with
642 existing subsidiaries and $94.4
billion in deposits, representing 70.94
percent of the state’s total deposits.
New Mexico lists two multibank
holding companies with 16 sub­
sidiaries and $1.2 billion in deposits,
representing 41.04 percent of the
area’s total deposits. There are no
multibank holding companies in Loui­
siana (see table).
The top five multibank holding com­
panies in Texas had 261 subsidiaries in
1983 with approximately $58.6 billion
in deposits, representing 44.03 percent
of the state’s total deposits.
These figures, contrasted with those
of yearend 1982, show that at that time
there were 59 multibank holding com­
panies with 551 subsidiary banks and
over $82 billion in deposits. Multibank
holding companies accounted for
68.69 percent of the state’s total
deposits in 1982. To illustrate the
phenomenal growth experienced over
the past years, consider that in 1977
there were 33 multibank holding com­
panies in Texas with 251 subsidiaries
and over $28 billion in deposits. At that
time only 53.58 percent of the state’s
deposits were held in these types of
holding company arrangements.
The Dallas Fed reports also indicate
that in 1983 there were 370 one-bank
holding companies in Texas with a
total of $16.9 billion in deposits,
representing 12.71 percent of the
state’s total deposits. For New Mexico,
the reports list 13 one-bank holding
companies with a total of $788.7
million in deposits, representing ap­
proximately 28 percent of the state’s
total deposits. And for Louisiana, the
reports show 39 one-bank holding com­
panies with $4.4 billion in deposits,
representing 62.86 percent of the
state’s total deposits.

At yearend 1982, figures for onebank holding companies showed that
there were 304 one-bank holding com­
panies in Texas with over $14 billion in
deposits. This accounted for 12.3 per­
cent of the state’s total deposits at
that time. Comparable statistics for
1977 show only 61 one-bank holding
companies with approximately $2
billion in deposits, representing only
3.9 percent of the state’s deposits.
The tax advantage afforded bank
holding companies, which can facili­
tate debt service, is the major reason
for the formation of most one-bank
holding companies. Holding compa­
nies also are used for estate planning
purposes, to engage in nonbank activi­
ties and to serve as a vehicle for rais­
ing capital. While similar advantages
exist for multibank holding companies,
these organizations are formed primar­
ily as a means of growth and expan­
sion into new markets. The fact that
Texas does not allow branch banking

clearly contributes to much of the
A bank holding company is a corpor­
ation which controls 25 percent or
more of a bank’s stock. Two types of
holding companies exist—those which
control the ownership of only one bank
and those which control the ownership
of more than one bank. The Bank Hold­
ing Company Act of 1956—which is
considered the first comprehensive
legislation regarding holding compa­
nies—defined bank holding compa­
nies, controlled their expansion and re­
quired divestiture of certain nonbank­
ing activities. This act also designated
the Federal Reserve Board as the agen­
cy directly responsible for regulation,
supervision and exam ination of
holding companies. Prior approval
from the Board is required before a
holding company can be formed or
before an existing holding company
can acquire more than 5 percent of the
voting shares of an additional bank.

Texas Bank Deposits-1977

MULTIBANK (53.58%)
ONE-BANK (3.90%)
OTHER (42.52%)

Texas Bank Deposits-1983

MULTIBANK (70.94%)
ONE-BANK (12.71%)
OTHER (16.35%)

Each chart represents the percentages of total bank deposits in Texas held in banks affiliated with
multibank holding companies, one-bank holding companies, and banks not affiliated with holding

Financial Performance Report
Being Distributed
The March 1984 Uniform Bank
Performance Report, which has
been modified to incorporate the
revised March 1984 call report
data, is now being distributed to
all insured commercial banks
and is available for sale to the
public. Designed for use by bank
examiners, financial analysts
and bank managers, the quarterly
publication permits both sum­
mary and in-depth analysis of a
commercial bank’s financial per­
Copies of individual bank
UBPR’s may be obtained for $25
each. Quantity discounts are

available. The cost to banks re­
questing additional copies of
their UBPR’s is $6 per copy.
Revised 1984 UBPR User’s
Guides, which will be distributed
free to insured commerical banks
during August, are $6 each.
March 1984 Peer Group Reports,
which cover all UBPR Peer
Groups, and State Average
Reports, which cover all states,
are also available for $25 per
All orders must be sent to UB­
PR, Department 4320, Chicago, II.
60673. Please call (202) 447-0491
for more information.

Deposit, Asset
Data Available
Deposit and asset data for all in­
sured commercial banks in Texas and
in the Eleventh Federal Reserve
District have been compiled by the
Statistics Department of the Dallas
Fed. The information contained in the
report was gathered from the Dec. 31,
1983, reports of condition prepared by
commercial banks for bank regulatory
agencies. Copies of the report, entitled
“Total Assets and Total Deposits of
Commercial Banks in Texas," are
available upon request from the Public
Affairs Department.

> ^m
i- h m
> n 3)

5. S'
5) 9
CD —-

a, 00
3 3X" =3
>a £
*■ o "°
CD -•

"□ o =3
3 o'

5- o 1/1 CD

§ S


o « -


=r «/>


O ' CD





= m' m
0 > c/>
”n 3
S B oo


—. 3 3 <