Full text of Roundup : March/April 1987, Volume 6, Number 2
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DALLAS Federal Reserve Bank of Dallas March/April 1987 Volume 6, Number 2 Discount window operations Fed loans assist depository institutions The objective of the discount win dow is to assist financial institutions in maintaining their liquidity, accord ing to Jesse Sanders, vice president over the Loan Department of the Dallas Fed. Loans from the Federal Reserve provide depository institutions with cash advances necessary to meet their short-term liquidity needs. Prior to the passage of the Monetary Control Act of 1980 (MCA), loans were available only to commercial banks which were members of the Fed. MCA directed the Fed to open its discount window to all depository institutions that maintain transaction accounts or nonpersonal time deposits. This change allowed state nonmember banks access to Fed loans. Savings and loan associations, as well as credit unions, also became eligible to borrow from the Fed. However, these institutions are ex pected to seek funds from the Federal Home Loan Bank, the National Credit Union Administration’s Central Liquidi ty Facility or similar industry sources, prior to borrowing from the discount window. This treatment is consistent with the Fed’s posture of being the Welcoming Governor Wayne Angel to the Dallas Fed are Robert Boykin, president, and Adm. Bobby Inman, chairman of the board of directors. Angel, a member of the Fed’s Board of Governors in Washington, was in Dallas to attend a directors’ meeting and discuss issues of concern within the District. “ lender of last resort” —that is, depository institutions are expected to seek all other reasonable sources of funds before requesting a loan from the Fed. The discount rate, the rate of in terest charged on loans made by the Fed to depository institutions, is one of the primary tools used by the Federal Reserve System to implement the na tion’s monetary policy. The lending functions of the Fed are conducted in conjunction with the System’s efforts to maintain a sound and efficient financial system. Historically, the Fed’s announce ment of a change in the discount rate has been taken as a signal of the direc tion of monetary policy. The discount rate—currently 5.5 percent—is ad justed from time to time to reflect prevailing economic and money mar ket conditions. Theoretically, the purpose of the dis count window is to extend credit to depository institutions in response to changes in commerce, industry, and agriculture at any given period of time. Loans from the discount window sup ply reserves to meet the particular (Continued on page 2) INSIDE ■ TREASURY STRIPS 4 ■ FED INCOME 4 ■ FRB— DALLAS BOARDS 5 ■ NOW AVAILABLE 7 Discount window operations (Cont.) credit needs of individual depository institutions. “ Smaller banks tend to have limited sources of liquidity, frequently limited to one or more correspondent banks,” Sanders said. “ Large banks may also have access to the nationwide Fed Funds market, the brokered certificate of deposit market and Eurodollars, but these sources are less available to smaller banks throughout the country.” Loans from the Fed’s discount win dow are usually one to seven days in length, according to Finlay Higgins, manager of the Loan Department in Dallas. However, loans to institutions with unusual liquidity needs are pay able on demand and may be reviewed daily to meet the institution’s business needs. Loans to smaller banks tend to be extended for a longer period of time. Higgins explained that the turnaround time necessary to correct a liquidity need is usually longer for smaller in stitutions. “ They simply cannot make the adjustment as quickly as the larger institutions; therefore, we allow for that extra time when granting the ad vance,” he said. Loans to smaller banks tend to be extended for a longer period of time.... the turnaround time necessary to correct a liquidity need is usually longer for smaller institutions. Higgins added that a request for a loan to buy securities at a higher in terest rate than the discount rate (“ ar bitrage” ) or to promote a big loan cam paign would generally be denied. “ Those types of requests do not meet the criteria or purposes of discount window operations,” Higgins re marked. Most loan requests to the Dallas Fed are made by phone. Depository institu tions must have proper documentation already on file with the Fed before any 2 loan can be granted. When the request is made by an authorized official of the requesting financial institution, Loan Department employees get the reason for the loan and other general informa tion. The loan can then be granted after arrangements to obtain the collateral are made. The term “ discount window” reflects previous procedures for extending credit by discounting commercial and agricultural paper. “ Financial institutions must have collateral of sufficient value to support the loan,” Sanders said. “ Government securities, federal agency securities and state and municipal obligations are the major acceptable forms of col lateral. If an institution has no such securities available, the Loan Depart ment will consider the pledging of customers’ notes.” The term “ discount window” reflects previous procedures for extending credit by discounting commercial and agricultural paper. The Reserve Bank deducted interest from the face amount of eligible commercial and agricultural paper and credited the net proceeds. At maturity of the commer cial and agricultural paper, the borrow ing institution would pay the Reserve Bank the face amount. This practice ended, for the most part, in the mid-tolate 1950s, Sander said. According to Sanders, financial in stitutions experience a high loan de mand and are actively seeking addi tional customer deposits during periods of rapid economic growth as experienced in the Eleventh District during the 70s and early 80s. At the same time, they generally de-emphasize the purchase of government securities because of comparatively lower rates of return. Therefore, when economic co nditions tighten or deposits actually decrease, institu tions may find themselves with limited marketable securities as a hedge for li quidity needs. Traditionally, adjustment credit has accounted for the majority of borrow ing in all Fed Districts. Adjustment bor rowing tends to be heaviest and more widespread during periods of tight credit. Primarily, adjustment borrowing is used by institutions experiencing an unexpected outflow of volatile funds. Higgins explained that these borrow ings are utilized pending an orderly ad justment of the institution’s assets and liabilities. Extended credit, on the other hand, is divided into three different pro grams. One program provides seasonal credit for nine months or less to smaller depository institutions lacking access to market funds, while a sec ond type assists depository institu tions experiencing special difficulties arising from exceptional circum stances or practices involving that in stitution. A third type of program is designed to meet the general liquidity needs of a broad range of depository institutions. The seasonal credit program began in the early 1970s to meet the needs of (Continued on page 6) Lupe Garcia, president of the Dallas Hispanic Chamber of Commerce, welcomes William Wallace, first vice presi dent of the Dallas Fed, to the DHCC. Wallace spoke at the March meeting of the group, outlining the purposes and functions of the Fed System. Changes in payments system proposed The Federal Reserve Board recently issued for comment a series of propos ed amendments to its May 17, 1985, Payments System Risk Policy. The policy is designed to reduce and con trol the payments system risk resulting from the use of large-dollar funds transfer networks, book-entry securi ties transfer systems, and automated clearing houses (ACHs). Large-dollar funds transfer networks are an integral part of the payments and clearing mechanism. Participants on these networks incur total over drafts of more than $80 billion per day. A daylight overdraft occurs when an institution sends funds over Fedwire, the Federal Reserve’s funds transfer system, in excess of the balance in its account at the Fed, or sends more funds over a private funds transfer net work than it has received. Overdrafts of another $60 billion per day result from book-entry transfers of U.S. Government and agency securi ties. These overdrafts occur when a depository institution receives and pays for more securities over Fedwire than it has sent and received payment. The Board’s policy is designed to reduce the domino effect on the bank ing system—called systemic risk— which might result if a large institution were unable to settle its daylight over drafts on a private-wire funds transfer system at the close of a day. The policy also attempts to limit potential loss to the Federal Reserve through the failure of depository institutions to settle for daylight overdrafts in their Fed ac counts. The policy seeks to accomplish these objectives by reducing the total volume of daylight overdrafts and the number of depository instititions that rely substantially on them. The prin cipal method is the sender net debit cap, a self-determined limit on the amount of daylight overdrafts at each depository institution. With respect to book-entry security daylight overdrafts, the Board asked for comment on the following: • a proposal to give depository institu tions an option for dealing with bookentry securities overdrafts. One option is to combine securities daylight over drafts with other daylight overdrafts (primarily caused by fund transfers) in meeting the overall sender net debit cap. • a proposal to limit the size of individ ual book-entry securities transfers, and whether the limit should be $25 or $50 million. The Board also asked for comment on the following proposals affecting sender net debit caps: • a proposal to reduce the cap levels established in May 1985 by 25 percent, effective June 18, 1987. • a proposal to establish a new de minimis cap category for institutions that do not incur large or frequent daylight overdrafts. Proposals affecting ACH include: • whether to post all entries for ACH debit transactions and checks as of 1 p.m. Eastern time for purposes of calculating daylight overdraft levels. • whether to grant finality for ACH credit payments of $5,000 and all ACH debit items until the Reserve Banks have actually received the funds. In connection with these proposals, the Board also requested comment on the concept of charging a fee for daylight overdrafts in accounts at the Federal Reserve that are subject to the net debit cap. The objective of this fee would be to provide an additional in centive for depository institutions and their customers to reduce daylight overdrafts. Public comment, with deadlines in mid-April, was requested on each of these proposed changes. These pro posals were distributed to depository institutions in the Eleventh District in circular 86-112. Persons interested in receiving a copy of the circular may call the Public Affairs Department at 214-651-6289. Discussing recent trends in banking are Gerald Fronterhouse, chairman of the board at RepublicBank, and Bob Clair, economist at the Dallas Fed. Clair was recently the speaker at a Fed luncheon for financial leaders in the metroplex, ad dressing the topic of bank profitability. 3 STRIPS now eligible for TT&L The separate interest and principal components of Treasury STRIPS became eligible as collateral for Treasury Tax & Loan (TT&L) accounts in March, according to Tyrone Gholson, assistant vice president in the Securities Department of the Federal Reserve Bank of Dallas. The STRIPS program, Separate Trading of Registered Interest and Principal of Securities, was announced by the U.S. Treasury in 1985. STRIPS are selected Treasury securities maintained in book-entry form at a Reserve Bank. These securities are generally new securities with ten or more years of original maturity. They may be stripped into December UBPR released The December 1986 Uniform Bank Performance Report (UBPR) has been released to all insured com mercial banks and is available for sale to the general public. The December edition is identical in for mat to the September 1986 edition. The quarterly UBPR is designed for use by Bank examiners, financial analysts and bank managers. It pro vides information for both summary and in-depth analysis of a commer cial bank’s financial performance and trends. All copies of individual bank UBPRs are $30 per report for the general public. UBPR User’s Guides may be obtained for $15 each. December 1986 and prior State Average Reports are also available for $30 per copy and Peer Group Reports are $50 per copy. Persons interested in ordering the reports or obtaining additional infor mation on them should call the Federal Financial Institutions Ex amination Council at 1-800-843-1669, or send a check payable to the Council at UBPR, Department 4320, Chicago, IL 60673. 4 separate principal and interest com ponents or zero-coupon instruments, as direct obligations of the U.S. govern ment. The Treasury will assign a valuation expressed as a percentage of the maturity value of the component for each outstanding maturity date of a STRIPS component. For collateral value purposes, STRIPS components with less than a year to maturity will be accepted at face value. STRIPS components with more than one year to maturity will be accepted on the basis of a valuation rate calculated by the Treasury every three months. In order to determine the component value, the Treasury will use the “ lost bond program” method. The “ lost bond program” is used to find the present value of a zero-coupon instrument that is consistent with a given par value yield curve. This method is the same used for valuing STRIPS components for broker reporting purposes in Inter nal Revenue Service Publication 1212. The U.S. Treasury Department distri butes valuation rates to the Federal Reserve banks for use in revaluing the STRIPS components held for col lateral. Upon revaluation the Federal Reserve banks will notify affected financial institutions as to the amount of over- or under-collateralization. Creation of zero-coupon securities has benefited the Treasury by broaden ing the appeal of Treasury securities. The popularity of stripped Treasury securities has been a major develop ment in the government security market because of increased attrac tiveness among prospective investors. Questions concerning the use of STRIPS components as collateral for TT&L accounts should be directed to the S e c u ritie s D e p artm en t at 214-651-6360. S ystem pays Treasury $17.8 billio n If you like big numbers, then you’ll love this story. Following are a few of the more interesting and illustrative ex cerpts from the Federal Reserve System’s 1986 “ income statement” . System earnings consist primarily of interest earned on securities held and traded for monetary policy purposes, fees earned through the provision of priced financial services and interest earned on loans to financial institu tions. These revenues are returned to the U.S. Treasury once the System’s operating expenses are deducted, a statutory six percent dividend is paid to member banks on their Federal Reserve stock and additional account ing gymnastics have been performed. Here’s the fun .. . . . . the Federal Reserve turned over $17.8 billion to the Treasury during 1986 . . . it cost $181 million for the System to have new Federal Reserve notes printed by the Bureau of Engrav- ing and Printing . . . the System reflected a special gain of $1,981 million due to the annual revaluation of foreign denominated assets such as currency and securities maintained at the New York Fed in its operations with foreign central banks . . . the Federal Reserve Banks earn ed $630 million through the provision of priced financial services to commer cial banks and others . . . the statutory dividend to member banks amounted to $110 million . . . the Reserve Banks were assess ed $97 million to recover the operating expenses of the Board of Governors and its staff in Washington, D.C. ... the System increased the amount of its own capital and surplus by $92 million . . . the 12 Federal Reserve Banks and 25 branches operating expenses totaled $1,156 billion. Now, aren’t you glad you read the whole story? Inman new chairman Directors named for Dallas Fed and Branches The board of directors of the Federal Reserve Bank of Dallas and its Branch offices have announced the following: Admiral Bobby R. Inman, chairman and chief executive officer of Westmark Systems, Inc., in Austin, has been designated chairman of the Head Of fice board by the Board of Governors of the Federal Reserve System. Inman succeeds Robert D. Rogers, president and chief executive officer of Texas In dustries, Inc., in Dallas. Hugh G. Robinson, president of Cityplace Development C orporation, Dallas, has been designated deputy chairman of the Head Office board. Robert G. Greer, chairman of the board of Tanglewood Bank, Houston, was elected by Federal Reserve member banks to serve as a Head Of fice director. Gary E. Wood, finance professor and director of governmental relations at Baylor University, Waco, was elected by member banks to serve as a Head Office director. Leo E. Linbeck, Jr., chairman and chief executive officer of Linbeck Con struction Corporation, Houston, was appointed by the Board of Governors of the Federal Reserve System to serve as a Head Office director. In addition, Gerald W. Fronterhouse, chairman of the board and chief ex ecutive officer of RepublicBank Cor poration, Dallas, has been appointed by the Board of Governors to serve as the Dallas Fed’s member of the Feder al Advisory Committee for 1987. Each of the 12 Federal Reserve Banks has a representative on the council, which meets at least four times per year to discuss economic and banking mat ters and to make recommendations regarding the activities of the Federal Reserve System. In addition to the Head Office an nouncements, changes to the Branch boards of directors have also been released as follows: El Paso Branch David L. Stone, president of the Portales National Bank in Portales, New Mexico, has been reappointed by the Head Office board to serve another term as a director for the El Paso Branch board. Humberto M. Sambrano, partner with Urban General Contractors, Inc., in El Paso, has been appointed by the Head Office to serve as a director for the El Paso Branch board. John R. Sibley, president of Delaware Mountain Enterprises in Carlsbad, New Mexico, was re appointed by the Board of Governors to serve as a director for the El Paso Branch board. San Antonio Branch board. Nine directors serve on the Dallas of fice board and seven directors serve on each of the three branch office boards. Each board meets monthly to discuss matters of importance to the Eleventh District’s economy as well as to the na tion’s. All directors serve three year terms. Head Office directors are either elected by Eleventh District member banks or are appointed by the Board of Governors of the Federal Reserve System. Branch office directors are either appointed by the Federal Reserve Bank of Dallas directors or by the Board of Governors. Houston Branch Jenard M. Gross, chairman of the board and chief executive officer of United Savings Association of Texas, Houston, has been appointed by the Head Office board to serve as a direc tor for the Houston Branch board. Walter M. Mischer, Jr., president of the Mischer Corporation in Houston, has been reappointed by the Board of Governors to serve another term as director for the Houston Branch board. Gilbert D. Gaedcke, chief executive officer and chairman of the board of Gaedcke Equipment Company, Houston, has been appointed by the Board of Governors to serve as director for the Houston Branch board. San Antonio Branch C. Ivan Wilson, chairman of the board and chief executive officer of First City Bank of Corpus Christi, has been reappointed by the Head Office board to serve another term as director for the San Antonio Branch board. Patricia Patterson Lebermann, presi dent of Patterson Investments, Inc., has been appointed by the Board of Governors to serve as a director for the V $ : f c ■r l W B m ] * Mm m A familiar face to banking people throughout the Eleventh District, T. Guy Brown, assistant vice president of the Dallas Fed, says his farewells to Barbara Bates, executive vice president and cashier, and Frank Cox, president and CEO, both of North Dallas Bank. Brown retired from the Corporate Banking Department after five years of service at the Fed and a distinguished career with the U.S. Treasury. 5 Discount window operations (Cont.) small banks with limited access to funds in national money markets. These banks frequently had difficulty serving their local customers. Since the smaller institutions were unable to borrow funds in the money markets, they found it necessary to accumulate a greater amount of liquid assets throughout the year to meet their seasonal demand. This practice limited the amount of credit available to their customers. The seasonal credit program gives banks an assurance of access to bor rowed funds during normal peak seasons. This accessibility keeps them from having to carry the increased liq uid assets during other times of the year. As a result, more funds are available for loans in the local com munity throughout the year. Sanders explained that banks must establish their seasonal line with the Fed before being eligible for this credit program. The seasonal line is based on the bank’s projected available funds for the next 12 months as compared with its actual needs for the same time frames in previous years. He added that many smaller banks in the District are eligible for the program. According to Sanders, the program was partially designed to aid smaller banks with a large number of agricul tural loans due to their seasonal cash demands. For example, farmers tend to borrow funds and use their own deposits for planting costs and have little, if any, cash flow until the crop is harvested and sold. The seasonal loan provides an operating cushion for those financial institutions. The Fed also offers a temporary simplified seasonal credit program to small and mid-sized agricultural banks experiencing unusually strong loan demands. Under the temporary pro gram, which was created in response to farm ers’ request for special assistance due to the downturn in agricultural prices, qualifying banks may borrow at the discount window to fund half of their loan growth in excess of 2 percent over a base level. 6 In addition to seasonal credit, ex tended credit may be provided when exceptional circumstances or prac tices adversely affect the liquidity of an individual institution. These cir cumstances may include the closing of a major industrial plant in a local com munity, a natural disaster, or an overall downturn in economic activity. The key in determining an institu tion’s eligibility for extended credit is the Reserve Bank’s judgment that ex tending credit is in the public interest for an orderly resolution of the prob lem. The repayment plan usually in cludes special monitoring to insure fulfillment of the agreement, repay ment of the loan as conditions permit and restraint on the institution’s lend ing activity. “ Extended credit is also provided to meet liquidity problems of depository institutions, including those with longer-term asset portfolios which are experiencing difficulties in adjusting Examining high-speed check sorting equipment operating at the Dallas Fed are Ren Gao Lian, Bao Zhen Zhang and Jian Lin Wang. They visited the Bank as part of a business exchange program between metroplex companies and China. Enjoying food and friendship at a Dallas Fed reception are Adolf Latuhamallo and Akman Aga. The event was held to honor a group of 10 visitors from Bank Indonesia participating in a four week computer training program at the Fed. to changing market conditions such as disinterm ediation,” Higgins said. Although some commercial banks have such portfolios, they are more common to thrifts that have invested a large portion of their funds in long-term residential mortgages. Eleventh District loan operations were centralized in January of this year, with all loan requests directed to the Dallas office rather than the three branches. Sanders said centralization of loan activities is a current trend within the Fed System. “ We realize that the Fed is the ultimate resource to meet the liquidity needs of financial in s titu tio n s ,” Sanders said. “ While monetary policy is the big picture for the Fed, there are always instances where local demands are not following the overall banking industry. Therefore, loan operations must also meet the individual needs of the financial institutions in the local communities throughout the District.” NOW AVAILABLE Spring 1987 Following is a listing of recent System speeches and statements, Eleventh District circulars, and pamphlets and brochures which currently are available from the Federal Reserve Bank of Dallas. To place an order please circle the number of the item you wish to receive, fill out the address information at the bottom of the page, enclose a check or money order if applicable, and mail the en tire page to: NOW AVAILABLE Public Affairs Department Federal Reserve Bank of Dallas Station K Dallas, Texas 75222 System Speeches and Statements 1. Statement by Manuel H. Johnson, Jr., before the Subcommittee on Financial Institutions, Supervision, Regulation and In surance of the Committee on Banking, Finance and Urban Af fairs, U.S. House of Representatives, Washington, D.C. March 24, 1987. 2. “Anchoring the International Monetary System.” Remarks by H. Robert Heller at the International Economic Development Work ing Group Luncheon, The Heritage Foundation, Washington, D.C. March 24, 1987. 3. “Future Directions in the Financial Services Industry: The Inter national Markets.” Remarks by H. Robert Heller at the National Conference co-sponsored by the Georgetown University Law Center Continuing Education Division and Georgetown School of Business Administration, Washington, D.C. March 6, 1987. 4. Address by Manuel H. Johnson before the Eastern Economic Association, Washington, D.C. March 5, 1987. 5. Remarks by Wayne D. Angell before the National Association of Business Economists Policy Forum, Washington, D.C. February 24, 1987. 6. Testimony by Paul A. Volcker before the Committee on the Budget, U.S. Senate, Washington, D.C. February 24, 1987. 7. Address by Manuel H. Johnson before the Economic Outlook Conference, United States League of Savings Institutions, Washington, D.C. February 23, 1987. 8. Testimony by Paul A. Volcker before the Committee on Bank ing, Housing and Urban Affairs, U.S. Senate, Washington, D.C. February 19, 1987. 9. The International Challenge: How Will America Respond?” Remarks by H. Robert Heller at the Federal Reserve Bank of Atlanta, Atlanta, Georgia. February 12, 1987. 10. Statement by Wayne D. Angell before the Subcommittee on Consumer Affairs of the Committee on Banking, Housing and Urban Affairs, U.S. Senate, Washington, D.C. February 5, 1987. 11. Statement by Paul A. Volcker before the Joint Economic Com mittee, Washington, D.C. February 2, 1987. 12. Statement by Wayne D. Angell before the Committee on Bank ing Finance and Urban Affairs, U.S. House of Respresentatives, Washington, D.C. January 27, 1987. 13. Statement by Paul A. Volcker before the Committee on Banking, Housing and Urban Affairs, U.S. Senate, Washington, D.C. January 21, 1987. Federal Reserve Bank of Dallas 14. Remarks by Wayne D. Angell before the University Club of Chicago, Chicago, Illinois. January 6, 1987. 15. “The Debt Crisis and the Future of International Bank Lending.” Remarks by H. Robert Heller at the Annual Convention of the American Economic Association, New Orleans, Louisiana. December 29, 1986. Eleventh District Circulars 16. Announcement of appointments to the Advisory Council of Financial Institutions. 87-25. March 26, 1987. 17. Announcement of a change in the official staff of the Federal Reserve Bank of Dallas. 87-20. March 18, 1987. 18. The Board of Governor’s list of OTC (over-the-counter) Margin Stocks. 87-15. February 26, 1987. 19. The September 1986 UBPR (Uniform Bank Performance Report) available for sale to public 87-13. February 17, 1987. 20. Election and appointments to the board of directors of the Federal Reserve Bank of Dallas. 87-12. February 24, 1987. 21. Announcement of appointments to the Advisory Council of Financial Institutions. 87-11. February 11, 1987. 22. Partial list of designated nationals published by the Office of Foreign Assets Control. 87-5. January 16, 1987. 23. Announcement of changes in the official staff of the Federal Reserve Bank of Dallas. 87-1. January 7, 1987. 24. Issuance of final rule amending Regulation Z—Truth in Lend ing. 86-118. December 30, 1986. 25. Partial list of designated nationals. 86-110. December 12, 1986. 26. 1987 Federal Reserve System holidays. 86-103. December 4, 1986. Pamphlets, Brochures and Reports 27. 1986 Annual Report of the Federal Reserve Bank of Dallas. In cludes a comprehensive research article on lower oil prices and the economic outlook for the Eleventh District states. 28. Monetary Policy Objectives for 1987: Summary Report of the Federal Reserve Board. Semiannual. February 19, 1987. 29. Monetary Policy Objectives for 1987: Testimony of Paul A. Volcker, Chairman. Semiannual. February 19, 1987. 30. Selected Interest Rates. 86/87 updates of weekly, monthly and annual interest rate histories of Treasury bill auctions, Treasury constant maturities, Fed funds, and prime. 31. Energy and Southwest Economy. Proceedings of the 1985 Con ference on Energy and the Southwest Economy. 313 pp. $10/book. 32. Trade-Weighted Value of the Dollar. Monthly statistical release of the X-131 Nominal Dollar Exchange Rate Index and the X-101 Real Dollar Index recently established by the Federal Reserve Bank of Dallas. The X-131 compares the value of the dollar to all 131 U.S. trading partners. The RX-101 compares the purchasing power of the dollar to the 101 U.S. trading partners who have consumer price indexes. $48/annual subscription. 33. Truth in Lending, Regulation Z, Annual Percentage Rate Tables and Factor Tables for Irregular Transactions. $4/Twovolume set. Name_________________________________________________Organization________________________ Address_________________________________________________________________________________ City, State________________________________________________________________________ Zip Code 7 News Briefs New council members announced Four new members have been ap pointed to the Advisory Council of Financial Institutions of the Federal Reserve Bank of Dallas. They are Clyde N. Choate, president, Enserch Federal Credit Union, Dallas; Bookman Peters, chairman of the board and chief ex ecutive officer, First City National Bank, Bryan, TX; Ben Land, president, Family Federal Savings and Loan Association, Shreveport, LA and Walter E. Johnson, president, Allied Bank of Texas, Houston. The 12-member advisory council was founded in 1985 to provide improved communication between financial in stitutions and the Federal Reserve. It meets with the Bank’s senior manage ment twice yearly. At its most recent meeting in mid-January, the topics of discussion included the regional economic outlook and the impact of in Proceedings available terstate banking and limited branch banking. The council is chaired by A.W. Riter, Jr., chairman of the board and chief executive officer, InterFirst Bank Tyler, Tyler, TX. Other council members, who were reappointed for 1987, are James A. Altick, Central Bank, Monroe, LA; John H. Dalton, Freedom Capital Corpora tion, San Antonio; Lowell Smith, Jr., First State Bank, Rio Vista, TX; William E. Brady, Denton Savings Association, Denton, TX; Kenneth L. Burgess, First State Bank, Abilene, TX; Garry Owen, First Federal Savings, Roswell, NM and H.O. Bursum, III, First State Bank, Socorro, NM. The Dallas Fed also has an Advisory Council of Small Business and Agri culture. Similar councils have been established by other Federal Reserve banks elsewhere in the country. Copies of the proceedings of the 1985 Conference on Energy and the Southwest Economy, sponsored by the Federal Reserve Bank of Dallas, are now available. The volume contains the twelve con ference papers presented by several outstanding economists. The book also contains the text of the luncheon address by Admiral Bob by R. Inman, USN (Ret.), on the diver sification of the Texas economy. Copies may be ordered by sending a check or money order for $10.00 per copy to: Symposium, Public Affairs Department, Federal Reseserve Bank of Dallas, Station K, Dallas, TX 75222. Checks should be made payable to the Federal Reserve Bank of Dallas. Roundup is published monthly by the Federal Reserve Bank of Dallas and its Branches at El Paso, Houston, and San Antonio. Additional copies of most issues and subscription information are available from the Public Affairs Department. Editor: Sue Lynn Sasser FEDERAL RESERVE BANK OF DALLAS STATION K DALLAS, TEXAS 75222 ADDRESS CORRECTION REQUESTED B U LK R A T E PAID P E R M IT NO. 151