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jEwflJg Week ending: September 24, 1975 LIBRARY! Commercial banks restructure their asset portfolios in response JUN 08 1979 to changing economic conditions. Such a reshuffling of assets in large commercial banks occurred during the first eight and one-half months of 1975 as compared to the same period in 1974. Holdings of loans decreased by almost $23 billion since the first of the year, compared to an almost $30 billion increase during the same period a year ago. As the table indicates, the various types of loans have exhibited the same pattern of change as the* aggregate volume. So far this year, banks have increased their holdings of Government securities by over $10 billion, in contrast to a decline of $4.4 billion during the comparable period of 1974. Recently the pattern of change in bank assets has differed from the movement exhibited in the first six months of the year. The chart on page 11 illustrates that the decline in seasonally adjusted business loans since the first of the year has slowed in the last three months. As shown in the table below, consumer loans have increased by $528 million since early June, and the decline in real estate loans has slowed. Banks have been increasing their holdings of Treasury bills since early June. As shown in the table, about half of the year-to-date increase in bank holdings of Treasury bills has taken place since early June. Earlier in the year a significant part of the increase in bank holdings of U. S. Government securities was concentrated in notes and bonds maturing in one-to-five years. In the last three months banks have increased their holdings of such securities by only $785 million, compared to an increase of $5.3 billion for the year to date. Changes in Selected Assets of Large Commercial Banks 1/ (millions of dollars) 1/2/74 to 9/18/74 2/ Loans (excluding Fed funds sold) 3/ $29,951 Commercial and Industrial 17,959 Real Estate 4,594 Consumer 1,942 U. S. Government Securities Bills Notes and Bonds Maturing: Within 1 year 1 to 5 years After 5 years 1/1/75 to 9/17/75 2/ 6/18/75 to 9/17/75 2/ $-22,542 -12,284 - 1,246 610 $- 3,049 - 3,192 240 528 - 4,394 - 3,222 10,486 4,462 2,942 2,145 429 - 1,443 700 1,491 5,281 748 443 785 431 - — Data are not seasonally adjusted. 2/ — Data are changes in the average for the four weeks ended these dates. 3/ — Includes items not shown separately. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Prepared by Federal Reserve Bank of St. Louis Released: September 26, 1975 MONETARY BASE AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS SEASONALLY ADJUSTED BY THIS BANK BILLIONS OF DOLLARS MILLIONS 4 AUG 16 2 16 30 SEP 13 27 NOV 11 25 6 22 5 19 5 IB 2 18 30 14 28 11 25 9 23 6 20 3 17 I 13 29 DEC 1974 1975 LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 24, 1975 THE MONETARY BASE CONSISTS OF MEMBER BANK RESERVES AT THE FEDERAL RESERVE BANKS AND CURRENCY IN CIRCULATION (CURRENCY HELD BY THE PUBLIC AND IN THE VAULTS OF COMMERCIAL BANKS ), ADJUSTED FOR RESERVE REQUIREMENT RATIO CHANGES AND SHIFTS IN THE SAME TYPE OF DEPOSITS BETWEEN BANKS WHERE DIFFERENT RESERVE REQUIREMENT RATIOS APPLY. THE MAJOR SOURCES OF THE MONETARY BASE ARE FEDERAL RESERVE CREDIT AND THE GOLD STOCK. DATA ARE COMPUTED BY THIS BANK. A DETAILED DE SCRIPTION OF THE SOURCES AND USES OF THE MONETARY BASE IS AVAILABLE AS REPRINT NO. 31 FROM THE FEDERAL RESERVE BANK OF ST LOUIS. COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING: 9/25/74 12/25/74 2/26/75 3/2B/75 9.9 5.9 9. 1 8.8 7.5 7.6 2.4 7.8 7.8 6.5 6.8 4/23/75 5/21/75 6/25/75 7/23/75 TO THE AVERAGE OF FOUR WEEKS ENDING: 2/26/75 3/26/75 4/23/75 5/21/75 6/25/75 7/23/75 8/27/75 9/24/75 2 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6.2 7.2 7. 1 6. 1 7.4 7.5 6.9 7.0 4.2 4.8 3.5 6.0 6.2 5.6 5.9 8.3 8.2 6.4 6.8 12.9 8.8 8.8 PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS " MULTIPLIER v FEDERAL RESERVE CREDIT*/ AVERAGES OF DAILY FIGURES SEASONALLY ADJUSTED RATIO RATIO MULTIPLIER RAT IQ 2.513 2.510 2.503 2.512 2.501 LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 17, 1975 BILLIONS OF DOLLARS ——, ur - BILLIONS OF DOLLARS 110 ui mixuc * vr 10B THE FOUR WEEKS ENDING SEPTEMBER 24, 1975 FROM THE FOUR WEEKS ENDING, JUL. - JUN. MAY -- APR. MAR. ~ DEC. __ SEP. 23, 1975 25, 1975 21 23 1975 26 1975 25 1974 25 1974 FEDERAL RESERVE CREDIT 106 4.5 0.8 -5.3 104 102 100 98 J975 MILLIONS AUG. 20 101 96 94 24 10: 4 18 2 16 30 13 27 NOV II 25 8 22 5 19 5 19 2 16 30 14 28 11 25 9 23 6 20 3 17 1 15 29 DEC 1974 1975 LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 24, 1975 1/ RATIO OF MONEY STOCK ( Ml ) / MONETARY BASE. 2/ DEFINED TO INCLUDE HOLDINGS OF SECURITIES, LOANS, FLOAT AND 11 OTHER*' ASSETS. ADJUSTED FOR RESERVE REQUIREMENT RATIO CHANGES AND SHIFTS IN THE SAME TYPE OF DEPOSIT^ BETWEEN BANKS WHERE DIFFERENT RESERVE REQUIREMENT RATIOS APPLY. DATA ARE SEASONALLY ADJUSTED BY THIS BANK. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS MONEY STOCK PLUS NET TIME DEPOSITS AVERAGES OF DAILY FIGURES SEASONALLY ADJUSTED BILLIONS OF DOLLARS 665 r---- 1----- 1---- BILLIONS OF DOLLARS - ----- ----- -i 665 - 652.5 653.2 655.5 656.0 656.4 656.9 4 18 AUG 2 16 30 13 27 11 SEP NOV 8 22 DEC 5 19 5 19 FEB 25 MAR 2 ie 30 14 28 11 25 9 23 6 20 3 17 AUG SEP 1 15 29 LATEST DATA PLOTTED WEEK ENDINGt SEPTEMBER 17, 1975 CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE. MONEY STOCK PLUS NET TIME DEPOSITS (M2) COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING! 9/18/74 12/18/74 2/19/75 3/19/75 4/16/75 5/14/75 6/18/75 7/16/75 TO THE AVERAGE OF FOUR WEEKS ENDING: 2/19/75 3/19/75 4/16/75 5/14/75 6/18/75 7/16/75 8/20/75 9/17/75 Digitized4 FRASER for http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5.6 6.9 7. 1 7.2 9.0 9.3 8.9 8.8 6.7 7. 1 7.2 10.0 10.2 9.5 9.4 11.6 10.2 13.7 13.3 11.8 11.3 8.0 13.3 12.9 11.2 10.7 15.6 14.3 1 1.8 11.1 17.4 13.1 12.0 8.3 8.2 6.8 PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS MONEY STOCK AVERAGES OF DAILY FIGURES SEASONALLY ADJUSTED billions of dollars billions of dollars BILLIONS 293.1 293.9 295.9 295.4 295.4 295.4 — SEP I I I I 7 21 4 18 AUG 2 16 30 13 27 11 SEP NOV 23 8 22 5 19 FEB DEC 5 19 2 18 30 H 28 It MAR MAY 25 JUN 9 23 6 20 3 17 AUG SEP I IS 29 LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 17, 1975 CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.B RELEASE. THE MONEY STOCK CONSISTS OF DEMAND DEPOSITS PLUS CURRENCY AND COIN HELD BY THE NONBANK PUBLIC, COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING: 9/18/74 12/18/74 2/19/75 3/19/75 4/16/75 5/14/75 6/18/75 7/16/75 TO THE AVERAGE OF FOUR WEEKS ENDING: 2/19/75 3/19/75 4/16/75 5/14/75 6/16/75 7/16/75 8/20/75 9/17/75 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0.8 2.8 3. 1 3.1 5.5 5.5 5.0 5.3 -0.6 0.8 1.1 5. 1 5,2 4.5 5.0 9.9 7.4 12.0 10.8 8.7 8.8 3.9 11.1 9.9 7.6 7.9 13.9 11.4 8.2 8.4 15.4 9.8 9.7 2.8 4.7 4.2 PREPARED BY FEDERAL RESERVE BANK OF ST, LOUIS 5 YIELDS ON SELECTED SECURITIES AVERAGES OF DAILY RATES ENDED FRIDAY PERCENT PERCENT 13.5 13.0 12.5 12.0 11.5 11.0 RIME BANK OAN RATE 10.5 10.0 90 DAY CD'Saaat 9.5 CORPORATE AM BONDS 9.0 8.5 8.0 7.5 7.0 6.5 6.0 COl*tKCiAL PAPER 5.5 5.0 4.5 2 16 30 13 27 11 25 8 22 8 20 3 17 31 14 28 14 28 11 FEB MAR 25 0 23 APR 6 20 4 18 JUN 1 15 29 12 25 10 24 JUL LATEST DATA PLOTTEO ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING. SEPTEMBER 26, 1975 90 DAY CD'SXSBK AUG. 1 8 15 22 29 SEP. 5 12 19 26 X OCT. 3 10 17 24 31 6 PRIME BANKERS' ACCEPTANCES CORPORATE Am BONDS MUNICIPAL BONDS m 5.66 6.67 6.89 6.85 6.95 6.94 7.05 7.04 7.03 1975 PRIME COMMERCIAL PAPER 4-3 MONTH 6.53 6.63 6.68 6.75 6.75 6.75 6.75 6.93 6.96 6.48 6.66 6.73 6.79 6.83 6.82 6.85 6.82 6.88 8.86 8.93 8.95 8.96 8.96 8.93 8.94 8.98 8.95 7.09 7.16 7.17 7.18 7.18 7.34 7.40 7.49 N. A. / * AVERAGES OF RATES AVAILABLE. 3K9K BOND BUYER'S AVERAGE OF SECONDARY MUNICIPAL_BONOS THURSDAY DATA. WEDNESOAY TWO DAYS INDEX OF 20 MARKET RATES Fofc THE WEEK END 1N6 XX* SEVEN-DAY AVERAGES EARLIER THAN DATES SHOWN. CUFSRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE. N.A. - NOT AVAILABLE http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS 0 SELECTED SHORT-TERM INTEREST RATES AVERAGES OF DAiLY RATES ENDED FRIDAY PERCENT PERCENT 12.5 FEDERAL FUNDS RATE THREE ITH TRI T YI EL BILL MAI 2 16 30 IS 27 11 SEP 25 8 22 DISCOUNT RATE 6 20 OCT 3 17 31 14 28 14 28 11 FEB MAR 25 0 23 8 20 4 18 1 15 29 12 28 10 24 APR LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING* SEPTEMBER 26, 1875 1975 AUG. 1 8 15 22 29 SEP. 5 12 19 26 X OCT. 3 10 17 24 31 FEDERAL FUNDS XK 3-MONTH TREASURY BILLS 1-YEAR TREASURY BILL 3-5 YEAR GOVERNMENT SECURITIES LONG-TERM GOVERNMENT SECURITIES 6.25 6.09 6.08 6.15 6.23 6.06 6.15 6.28 6.29 6.28 6.42 6.42 6.48 6.49 6.38 6.43 6.45 6.35 6.86 7.11 7.17 7.26 7. 16 7.07 7.14 7.31 7.17 7.86 8.05 8.13 8.20 8.12 8.07 8.26 8.34 8.13 6.92 7.00 7.01 7.14 7.12 7.11 7.25 7.34 7.30 K AVERAGES OF RATEc AVAILABLE ** SEVEN-DAY AVERAGES FOR WEEK ENDING WEDNESDAY TWO DAYS EARLIER THAN DATE SHOWN. CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS NET TIME DEPOSITS ALL COMMERCIAL BANKS AVERAGES OF DAILY FIGURES SEASONALLY ADJUSTED BILLIONS OF DOLLARS BILLIONS OF DOLLARS 370 81ULlQNg 365 359.4 359.3 359.6 360.6 361.0 361.5 =_ SEP 360 355 350 345 340 335 330 325 320 7 21 4 18 AUG SEP 2 16 30 13 27 NOV 11 25 6 22 5 19 5 19 2 16 30 14 28 11 25 9 23 6 20 3 17 1 15 29 DEC 1974 1975 LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 17, 1975 CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE. * NET TIME DEPOSITS ARE DEFINED AS: SAVINGS DEPOSITS, TIME DEPOSITS OPEN ACCOUNT PLUS TIME CERTIFICATES OF DEPOSIT OTHER THAN NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN DENOMINATIONS OF #100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS. NET TIME DEPOSITS COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING: 9/18/74 12/18/74 2/19/75 3/19/75 4/16/75 5/14/75 8/18/75 7/16/75 9.9 10.6 10.7 10.8 12. 1 12.5 12.3 11.9 13.3 12.8 12.6 14.2 14.6 13.9 13.2 12.8 12.4 15.0 15.3 14.3 13.3 1 1.4 15.2 15.5 14.3 13.1 17.0 16.9 15.0 13.5 19.3 15.9 13.9 13.0 11.1 8.8 TO THE AVERAGE OF FOUR WEEKS ENDING: 2/19/75 3/19/75 4/16/75 5/14/75 6/18/75 7/16/75 8/20/75 9/17/75 8 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS DEMAND DEPOSIT COMPONENT OF AVERAGES OF DAILY FIGURES MONEY STOCK SEASONALLY ADJUSTED BILLIONS OF DOLLARS BILLIONS OF DOLLARS BILLIONS 221.2 222. 1 223.9 223.4 223.5 223.3 ♦ 18 2 16 30 13 27 11 NOV 25 8 22 5 18 5 18 FEB DEC MAR 2 16 30 14 28 11 23 8 *3 MAY JUN 1975 6 20 3 17 AUG SEP 1 15 29 LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 17, 1975 CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.B RELEASE. COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING: 9/18/74 12/18/74 2/19/75 3/19/75 4/16/75 5/14/75 6/18/75 7/16/75 -2.2 0.4 1.0 1 .1 4.0 4. 1 3.5 4.0 -3.3 -1.4 -0.8 3.9 4.0 3.2 3.9 10.2 7.3 12.6 11.0 8.5 8.8 3.4 11.6 10.0 7.3 7.8 14.7 11.6 7.8 8.3 16.2 9.6 9.8 1.3 4.0 3.7 TO THE AVERAGE OF FOUR WEEKS ENDING: 2/19/75 3/19/75 4/16/75 5/14/75 6/18/75 7/16/75 8/20/75 9/17/75 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS 9 CERTIFICATES OF DEPOSIT LARGE COMMERCIAL BANKS WEDNESDAY FIGURES NOT SEASONALLY ADJUSTED billions of dollars BILLIONS OF DOLLARS 100 98 96 94 92 90 88 86 84 82 80 78 76 74 72 i I 7 21 AUG i I 1 4 18 2 16 30 13 27 11 NOV SEP 25 8 22 1 l ,. ,l .1—1—l I 1 I I I I .1 I. Ll-l 5 19 FEB DEC 5 19 2 16 30 14 28 11 i I ! I 25 MAR 9 23 6 20 3 17 AUG SEP 1 15 29 1974 LATEST DATA PLOTTED WEEK ENDINGi SEPTEMBER 17, 1975 CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE. NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN DENOMINATIONS OF *100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS. 1975 AUG. 6 13 20 27 SEP. 3 10 17 24 OCT. 1 8 15 22 29 CERT 1F1 CATES CERTIFICATES OF DEPOSIT OF DEPOSIT NOT SEAS. ADJ. SEAS. ADJ. 81.0 81.1 81.1 81.0 81 .5 82. 1 82.2 79.4 78.7 77.9 77.0 77.1 78.1 78.6 PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS 10 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BORROWINGS FROM FEDERAL RESERVE BANKS ALL MEMBER BANKS IN THE NATION AVERAGES OF DAILY FIGURES billions of dollars billions of dollars 1975 MILLIONS AUG. 20 3 222 - 1.5 ■= 1 H AUG 2 IB 30 13 27 11 SEP NOV 23 8 22 5 19 3 19 FEB DEC 2 18 30 M 28 11 MAR 197-1 25 9 23 8 20 3 17 1.0 1 13 20 1975 LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 24, 1975 BUSINESS LOANS ( COMMERCIAL BILLIONS OF DOLLARS AND INDUSTRIAL ) WEEKLY REPORTING LARGE COMMERCIAL BANKS SEASONALLY ADJUSTED BILLIONS OF DOLLARS 154 152 150 128 126 124 122 120 lie COMPOUNDED ANNUAL RATES — OF CHANGE, AVERAGE OF — THE FOUR WEEKS ENDING SEPTEMBER 17, 1975 FROM _ THE FOUR WEEKS ENDING: _ JUL. 16, JUN. 18, ~ MAY 14, — APR. 16, _ MAR. 19, DEC. 18, SEP. 18, I I I I I 4 18 1975 1975 1975 1975 1975 1974 1974 -6.1 -7.7 -10.4 -11.1 -11.7 -12.2 -6.6 116 114 . 112 AUG. 15 110 106 I 2 18 30 13 27 11 NOV DEC 23 • 22 5 19 5 19 FEB MAR 2 16 30 14 28 11 MAY JUN 1975 1974 25 0 23 8 20 3 17 AUG SEP I 11 H LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 17, 1975 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PREPARED BY FEDERAL RESERVE BANK OF 6T. LOUIS 11 FEDERAL RESERVE BANK OF ST LOUIS P. 0. BOX 442 ST. LOUIS, MISSOURI 63166 FIRST CLASS MAIL U. S. POSTAGE PAID RETURN POSTAGE GUARANTEED PERMIT 444 fIRST CLRSS mniL MEMBER BANK DEPOSITS SUBJECT TO RESERVE REQUIREMENTS (CREDIT PROXY ) AVERAGES OF DAILY FIGURES SEASONALLY ADJUSTED BILL JONS OF DOLLARS http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BILLIONS OF DOLLARS 540 COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF THE FOUR WEEKS ENDING SEPTEMBER 17, 1975 FROM THE FOUR WEEKS ENDING: CREDIT CREDIT PROXY PROXY adjusted -0.9 JUN. SEP. -1.0 ’6. ’,9, 8, 18, 1975 1975 1974 1974 1.3 - -CREDIT PF'OXY ADJUSTED 1/ 500 BILLIONS CREDIT PFOXY CREDIT PROXY 495.8 496.0 496.9 7 21 4 18 2 18 30 NOV 27 DEC 23 822 FEB MAR 2 16 30 MAY 28 JUN 25 B 13 11 510 518 14 11 1974 t5 CREDIT PROXY ADJUSTED 502.7 503. 1 504.0 504.0 506.3 506.2 6 20 3 17 1975 LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 17, 1975 CURRENT DATA APPEAR H.9 RELEASE. IN THE BOARD OF GOVERNORS’ 1/ INCLUDES MEMBER BANK DEPOSITS, BANK-RELATED COMMERCIAL PAPER, EURODOLLAR BORROWINGS OF U.S. BANKS. AND CERTAIN OTHER NONDEPOSIT SOURCES. PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS 470
@FedFRASER